AMS Final Rule on Order & Fee for Imported Xmas Trees Starts Nov 9
The Agricultural Marketing Service has issued a final rule, effective November 9, 2011, that establishes a Christmas Tree Promotion, Research, and Information Order and program that will be financed by an assessment (fee or tax) of $0.15 each on U.S. domestic and imported fresh cut Christmas tree. As ABI is not yet programmed for the fee, AMS sources state that importers will have to pay the fee 30 calendar days after importation.
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(During 2006-2008, imports of Christmas trees averaged about 1.9 million trees, with imports from Canada accounting for 99.72% of the total. AMS states the Order will provide for the development and financing of a coordinated program of research, promotion, and information for Christmas trees. Industry members1 had sought the order in light of heavy advertising by artificial Christmas tree companies, and the rise in artificial tree purchases, from 9.8 million in 2003 to 17.4 million in 2007.)
No Prior Vote Before Order Takes Effect, Fees Start Nov 9
According to AMS, industry proponents of the fee asked that the first referendum on the fee be held three years afterthe program is in place. As a result, AMS sources state that the fee takes effect on November 9, 2011, the effective date of the final rule.
(AMS states that a referendum can be conducted either before the program is in place or three years after assessments first begin under the order. AMS’ separate final rule on the referendum procedures is available here.)
Current Fee Is 15 Cents per Tree
Producers and importers of fresh cut Christmas trees will pay a fee of $0.15 per tree. The fee may not be adjusted by the Board by more than 2 cents per Christmas tree during the fiscal period, and may not exceed 20 cents per Christmas tree.
Fee to be Paid 30 Days After Import (as No ABI Option Yet)
The final rule states that each importer of Christmas trees is to pay the fees through U.S. Customs and Border Protection. If CBP does not collect the fees from an importer, the importer is responsible for paying the fees directly to the Christmas Tree Promotion Board 30 calendar days after importation.
As the Automated Broker Interface has not yet been programmed for this fee, it will have to be paid in a different manner. In addition, until the Board is set up, AMS sources state the fees will be paid to AMS, and that further instructions on this point will be issued shortly.
(According to sources, CBP now requires "other agencies" such as AMS to pay for such ABI programming, before the program changes are made. Sources add that AMS has not yet provided CBP the funds to program the fee.)
Affected Trees Classified in at Least 3 HTS Nos, Etc.
AMS states that the import fee will be uniformly applied to imported fresh Christmas trees that are identified by HTS numbers 0604.91.0020, 0604.91.0040, and 0604.91.0060 or in any other numbers used to identify Christmas trees in the Harmonized Tariff Schedule.
("Christmas tree" means any tree of the coniferous species, that is severed or cut from its roots and marketed as a Christmas tree for holiday use.)
Definition of Importer
The final rule defines "importer" as any person importing Christmas trees into the U.S. in a fiscal period as a principal or as an agent, broker, or consignee of any person who domestically produces Christmas trees outside of the U.S. for sale in the U.S., and who is listed on the import records as the importer of record for such Christmas trees.
Small Quantities, Organic Trees Are Exempt
Producers who domestically produce, and importers who import, fewer than 500 Christmas trees per fiscal period are exempt from the fee and can file to request a certificate of exemption from the Board. Those that do not apply to the Board for an exemption certificate that imported fewer than 500 trees will receive a refund.
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 are exempt from paying the fee and can file to request an organic exemption. Reimbursements are also available if the fee is paid on NOP exempt trees.
Certain Reporting, Recordkeeping Required
As determined by the Board, producers and importers of Christmas trees are also 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 are also certain recordkeeping requirements in order to carry out the reporting.
Referendum on Continuing Program to be Held in 3 Years
AMS states that a referendum will 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 program.
2Note the fees for U.S. produced trees are due once a year, by February 15 of the crop year. Sources state that date is also the 'drop dead' date for the import fees.
(See ITT’s Online Archives 10110917 for summary of proposed rule, which has been corrected to state that no vote is required to occur before the fee is collected. See ITT's Online Archives 11022206 for summary of AMS reopening the comment period on the proposed rule.)
AMS contact - Patricia Petrella (301) 334--2891
(D/N AMS-FV-10-0008-PR-1A, FR Pub 11/08/11)