Cotton Import Fees to Jump 18.7%
Trade Update • October 3, 2022
As of November 28, 2022, the Agricultural Marketing Service (AMS) is amending its Cotton Board Rules and Regulations, which will increase the assessments paid by U.S. importers of cotton and cotton-containing products by 18.7% under the Cotton Research and Promotion Order. The fees will increase from US$0.011136/kg to US$0.013215/kg.
This new rule comes following a direct final rule issued by the U.S. Department of Agriculture’s Agricultural Marketing Service (AMS). The increase in fees reflects an increase in the weighted average price of upland cotton received by U.S. farmers in 2021. An amendment is required each year to ensure that assessments collected on imported cotton and the cotton content of imported products will be the same as those paid on domestically produced cotton.
In addition, AMS is updating the Harmonized Tariff Schedule (HTS) statistical reporting numbers that were amended since the last assessment adjustment in 2021.
This direct rule is effective November 28, 2022, without further action or notice, unless significant adverse comment is received by October 28, 2022. If significant adverse comment is received, AMS will publish a timely withdrawal of the amendment in the Federal Register.
For questions on these this fee increase and how it might impact your imports, please contact us, we’re here to help.
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