AMS Delays Start of Imported Xmas Tree Fee (Was to Begin Nov 9)
The Agricultural Marketing Service is delaying its implementation of the Christmas Tree Promotion, Research, and Information Order that was supposed to be financed by an assessment (fee or tax) of $0.15 on each U.S. domestic and imported fresh cut Christmas trees, starting November 9, 2011. According to AMS sources, "misinformation about the Christmas Tree program has caused confusion for consumers heading into this Christmas season. For that reason, we have delayed implementation of the program and are looking at steps forward."
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Order and Fee Were to Take Effect Before Referendum Approving Order
Trade sources note that this Order was unusual as it and the fee were to take effect before approval by referendum, based on industry request. The required referendum was then to be conducted three years after the collection of fees began, to determine if producers and importers favored the continuation of the research and promotion program.
Fee Was to Be Paid 30 Days after Import as no CBP ABI Programming
For importers, the fee was to be paid 30 days after importation1, as no U.S. Customs and Border Protection ABI programming had been done for its electronic collection. AMS was to provide instructions on paying the fee in a non-automated fashion in the near future.
Subject trees. The affected trees are classified in at least three tariff numbers, 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. Small importers (those that import fewer than 500 trees per fiscal period) and trees qualifying as organic were slated to be exempt from the Order and fee.
Reporting. Certain reporting on 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 were also to be required. There were also certain recordkeeping requirements in order to carry out the reporting.
(The Order was requested by the Christmas Tree Checkoff Task Force, an industry-wide group of producers and importers that support the program.)
1Note the fees for U.S. produced trees were due once a year, by February 15 of the crop year. Sources stated that this date was also the 'drop dead' date for the import fees.
(See ITT's Online Archives 11110805 for summary of final rule. See ITT’s Online Archives 10110917 for summary of the 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 final rule (FR Pub 11/08/11) available here.