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AMS Announces Vote for New Tax on Imported Processed Red Raspberries, Etc. (Ballots Due by April 2)

The Agricultural Marketing Service has issued a pending referendum order1 to establish, if approved by ballot vote, a new Promotion, Research and Information Order, including an assessment (tax), on processed red raspberries and red raspberries for processing.2. The order also announces the dates for the initial referendum.

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AMS also issued a final rule, effective February 8, 2010, establishing procedures for both the initialreferendum and for future referendums. See ITT's Online Archives or 04/10/09 news, 09041099 9, for BP summary of proposed order and proposed referendum procedures.

USDA to Conduct Referendum to Determine if Order Will be Implemented

USDA is conducting an initial referendum to ascertain whether the persons to be covered by and assessed under the pending order favor its implementation. The order will be implemented if it is approved by a simple majority of the eligible producers and importers voting in the referendum.

Only eligible entities may vote. The referendum will be conducted among eligible producers and importers of red raspberries. To be eligible to vote, producers must have produced 20,000 pounds of red raspberries for processing and importers must have imported 20,000 pounds of processed red raspberries during the representative period from January 1, 2008 through December 31, 2008.

Ballots must be received by April 2, 2010. Ballots will be mailed to all known producers of red raspberries for processing and importers of processed red raspberries, on or before March 8, 2010. Ballots must be received by the referendum agents no later than the close of business 4:30 pm (Eastern Time) on April 2, 2010.

Initial Fee Would be One Cent Per Pound for Importers, Producers

Under the pending order, producers of red raspberries for processing and importers of processed red raspberries would pay a fee of up to one cent per pound, with the initial assessment rate being one cent per pound, which would be paid to the proposed National Processed Raspberry Council (Council).

Exemption for small entities & organic red raspberries. Producers and importers of less than 20,000 pounds annually of red raspberries for processing and processed red raspberries, respectively, would be exempt from the assessment. Also, producers and importers of organic red raspberries for processing and processed red raspberries, respectively, would be exempt from assessment.

Fee on Imported Processed Raspberries Would be Collected at Time of Entry

The fee on imports of processed red raspberries would be collected by U.S. Customs and Border Protection and paid at the time of entry or withdrawal for consumption in the U.S. However, if CBP did not collect the fee from an importer, the importer would be responsible for paying it directly to the Council.

The fee would apply to imported processed red raspberries identified by Harmonized Tariff Schedule (HTS) number 0811.20.2025 or any other numbers used to identify processed red raspberries.

(Effective January 10, 2010, the 484(f) Committee approved changes to the 9th and 10th digits of HTS 0811.20.20 in order to separate processed red raspberries from all other processed raspberries. The new number assigned to processed red raspberries is 0811.20.2025 and the residual "other" for other processed raspberries, including black raspberries, is 0811.20.2035.)

1Called a "proposed rule and referendum order" by AMS; however the order was proposed in 2009 and is now pending the initial referendum vote.

2Raspberries mean and include all kinds, varieties, and hybrids of cultivated raspberries of the genus "Rubus" grown in or imported into the United States.

Processed Raspberries means raspberries which have been frozen, dried, pureed, made into juice, or delivered in any other form altered by mechanical processes other than fresh.

AMS contact - Kimberly Coy (202) 720-9915

AMS final rule on referendum procedures (FR Pub 02/08/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-2064.pdf

AMS pending rule establishing referendum order (FR Pub 02/08/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-2065.pdf