Details of AMS' Proposed Order and Fee on Christmas Trees
The Agricultural Marketing Service has issued a proposed rule to establish a Christmas Tree Promotion, Research, and Information Order and program to be financed by an assessment (fee or tax) on producers and importers of fresh cut Christmas trees.
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Comments are due by February 7, 2011.
(The proposed Order would provide for the development and financing of a coordinated program of research, promotion, and information for Christmas trees. According to those who requested1 the order, the industry faces increased competition and changes in consumer habits, as the market for artificial trees has greatly expanded.)
Initial Fee Would be 15 Cents per TreeProducers and importers of fresh cut Christmas trees would pay an initial fee of $0.15 per tree. The fee could not increase or decrease by more than 2 cents per Christmas tree during the fiscal period and could not exceed 20 cents per Christmas tree.
Small Quantities, Organic Trees Would be Exempt
Producers and importers who domestically produce or import less than 500 Christmas trees annually would be exempt from the fee.
In addition, producers who only produce (or importers who only import) Christmas trees that are eligible to be labeled as 100% organic under the National Organic Program (NOP) system plan and are not split operations would be exempt from paying the fee.
Fee Would be Assessed by CBP or Paid to Board 30 Days After Import
Each importer of Christmas trees would pay the fee through U.S. Customs and Border Protection (CBP). If CBP does not collect a fee from an importer, the importer would be responsible for paying the assessment directly to the Christmas Tree Promotion Board 30 calendar days after importation.
Certain Reporting, Recordkeeping May be Required
As determined by the Board, producers and importers of Christmas trees may also be required to report certain information to the Board, including, but not limited to the: (1) number of trees produced or total imports; (2) number of Christmas trees on which an assessment was paid; (3) name and address of producer or importer; and (4) date assessment was paid on each Christmas tree produced or imported. There could also be certain recordkeeping requirements in order to carry out the reporting.
Referendum on Continuing Program Would be Held After 3 Years
A referendum would be conducted, among Christmas tree producers and importers, three years after the collection of fees begin to determine if they favor the continuation of the program.
1The Order was requested by the Christmas Tree Checkoff Task Force, an industry wide group of producers and importers that support the proposed program.
(See ITT’s Online Archives or 11/05/10 news, 10110527, for initial BP summary announcing the proposed order.)
AMS contact - Patricia Petrella (301) 334--2891
(D/N AMS-FV-10-0008-PR-1A, FR Pub 11/08/10)
AMS’ separate proposed rule on referendum procedures is available here. Comments on this second proposed rule are also due by February 7, 2011.
*Note that this summary was corrected on 11/08/11 to remove language stating that a referendum had to be conducting approving the order before it (and the fee) could take effect. Instead, the order is taking effect on the date of the final rule and a referendum on the order (and fee) will occur three years thereafter.