
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1314i]

 
                          TITLE 7--AGRICULTURE
 
             CHAPTER 35--AGRICULTURAL ADJUSTMENT ACT OF 1938
 
 SUBCHAPTER II--LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING 
                   QUOTAS, AND MARKETING CERTIFICATES
 
                        Part B--Marketing Quotas
 
                  subpart i--marketing quotas--tobacco
 
Sec. 1314i. Domestic marketing assessment


(a) Certification

    A domestic manufacturer of cigarettes shall certify to the 
Secretary, for each calendar year, the percentage of the quantity of 
tobacco used by the manufacturer to produce cigarettes during the year 
that is produced in the United States.

(b) Penalties

                           (1) In general

        Subject to subsection (f) of this section, a domestic 
    manufacturer of cigarettes that has failed, as determined by the 
    Secretary after notice and opportunity for a hearing, to use in the 
    manufacture of cigarettes during a calendar year a quantity of 
    tobacco grown in the United States that is at least 75 percent of 
    the total quantity of tobacco used by the manufacturer, or to comply 
    with subsection (a) of this section, shall be subject to the 
    requirements of subsections (c), (d), and (e) of this section.

                       (2) Failure to certify

        For purposes of this section, if a manufacturer fails to comply 
    with subsection (a) of this section, the manufacturer shall be 
    presumed to have used only imported tobacco in the manufacture of 
    cigarettes produced by the manufacturer.

                       (3) Reports and records

        (A) In general

            The Secretary shall require manufacturers of domestic 
        cigarettes to make such reports and maintain such records as are 
        necessary to carry out this section. If the reports and records 
        are insufficient, the Secretary may request other persons to 
        provide supplemental information.

        (B) Examinations

            For the purpose of ascertaining the correctness of any 
        report or record required under this section, or of obtaining 
        further information required under this section, the Secretary 
        and the Office of Inspector General may examine such records, 
        books, and other materials as the Secretary has reason to 
        believe may be relevant. In the case of a manufacturer of 
        domestic cigarettes, the Secretary may charge a fee to the 
        manufacturer to cover the reasonable costs of any such 
        examination.

        (C) Penalties

            Any person who fails to provide information required under 
        this paragraph or who provides false information under this 
        paragraph shall be subject to section 1001 of title 18.

        (D) Confidentiality

            Section 1314g(c) of this title shall apply to information 
        submitted by manufacturers of domestic cigarettes and other 
        persons under this paragraph.

        (E) Disclosure

            Notwithstanding any other provision of law, information on 
        the percentage or quantity of domestic or imported tobacco in 
        cigarettes or on the volume of cigarette production that is 
        submitted under this section shall be exempt from disclosure 
        under section 552 of title 5.

(c) Domestic marketing assessment

                           (1) In general

        A domestic manufacturer of cigarettes described in subsection 
    (b) of this section shall remit to the Commodity Credit Corporation 
    a nonrefundable marketing assessment in accordance with this 
    subsection.

                             (2) Amount

        The amount of an assessment imposed on a manufacturer under this 
    subsection shall be determined by multiplying--
            (A) the quantity by which the quantity of imported tobacco 
        used by the manufacturer to produce cigarettes during a 
        preceding calendar year exceeds 25 percent of the quantity of 
        all tobacco used by the manufacturer to produce cigarettes 
        during the preceding calendar year; by
            (B) the difference between--
                (i) \1/2\ of the sum of--
                    (I) the average price per pound received by domestic 
                producers for Burley tobacco during the preceding 
                calendar year; and
                    (II) the average price per pound received by 
                domestic producers for Flue-cured tobacco during the 
                preceding calendar year; and

                (ii) the average price per pound of unmanufactured 
            imported tobacco during the preceding calendar year, as 
            determined by the Secretary.

                           (3) Collection

        An assessment imposed under this subsection shall be--
            (A) collected by the Secretary and transmitted to the 
        Commodity Credit Corporation; and
            (B) enforced in the same manner as provided in section 1314h 
        of this title.

(d) Purchase of Burley tobacco

                           (1) In general

        A domestic manufacturer of cigarettes described in subsection 
    (b) of this section shall purchase from the inventories of the 
    producer-owned cooperative marketing associations for Burley tobacco 
    described in section 1314h(a)(2) of this title, at the applicable 
    list price published by the association, the quantity of tobacco 
    described in paragraph (2).

                            (2) Quantity

        Subject to paragraph (3), the quantity of Burley tobacco 
    required to be purchased by a manufacturer during a calendar year 
    under this subsection shall equal \1/2\ of the quantity of imported 
    tobacco used by the manufacturer to produce cigarettes during the 
    preceding calendar year that exceeds 25 percent of the quantity of 
    all tobacco used by the manufacturer to produce cigarettes during 
    the preceding calendar year.

                           (3) Limitation

        If the total quantity of Burley tobacco required to be purchased 
    by all manufacturers under paragraph (2) would reduce the 
    inventories of the producer-owned cooperative marketing associations 
    for Burley tobacco to less than the reserve stock level for Burley 
    tobacco, the Secretary shall reduce the quantity of tobacco required 
    to be purchased by manufacturers under paragraph (2), on a pro rata 
    basis, to ensure that the inventories will not be less than the 
    reserve stock level for Burley tobacco.

                          (4) Noncompliance

        If a manufacturer fails to purchase from the inventories of the 
    producer-owned cooperative marketing associations the quantity of 
    Burley tobacco required under this subsection, the manufacturer 
    shall be subject to a penalty of 75 percent of the average market 
    price (calculated to the nearest whole cent) for Burley tobacco for 
    the immediately preceding year on the quantity of tobacco as to 
    which the failure occurs.

                      (5) Purchase requirements

        Tobacco purchased by a manufacturer under this subsection shall 
    not be included in determining the quantity of tobacco purchased by 
    the manufacturer under section 1314h of this title.

(e) Purchase of Flue-cured tobacco

                           (1) In general

        A domestic manufacturer of cigarettes described in subsection 
    (b) of this section shall purchase from the inventories of the 
    producer-owned cooperative marketing association for Flue-cured 
    tobacco described in section 1314h(a)(2) of this title, at the 
    applicable list price published by the association, the quantity of 
    tobacco described in paragraph (2).

                            (2) Quantity

        Subject to paragraph (3), the quantity of Flue-cured tobacco 
    required to be purchased by a manufacturer during a calendar year 
    under this subsection shall equal \1/2\ of the quantity of imported 
    tobacco used by the manufacturer to produce cigarettes during the 
    preceding calendar year that exceeds 25 percent of the quantity of 
    all tobacco used by the manufacturer to produce cigarettes during 
    the preceding calendar year.

                           (3) Limitation

        If the total quantity of Flue-cured tobacco required to be 
    purchased by all manufacturers under paragraph (2) would reduce the 
    inventories of the producer-owned cooperative marketing association 
    for Flue-cured tobacco to less than the reserve stock level for 
    Flue-cured tobacco, the Secretary shall reduce the quantity of 
    tobacco required to be purchased by manufacturers under paragraph 
    (2), on a pro rata basis, to ensure that the inventories will not be 
    less than the reserve stock level for Flue-cured tobacco.

                          (4) Noncompliance

        If a manufacturer fails to purchase from the inventories of the 
    producer-owned cooperative marketing association the quantity of 
    Flue-cured tobacco required under this subsection, the manufacturer 
    shall be subject to a penalty of 75 percent of the average market 
    price (calculated to the nearest whole cent) for Flue-cured tobacco 
    for the immediately preceding year on the quantity of tobacco as to 
    which the failure occurs.

                      (5) Purchase requirements

        Tobacco purchased by a manufacturer under this subsection shall 
    not be included in determining the quantity of tobacco purchased by 
    the manufacturer under section 1314h of this title.

(f) Crop losses due to disasters

                           (1) In general

        If the Secretary, in consultation with producer-owned 
    cooperative marketing associations, determines that because of 
    drought, insect or disease infestation, or other natural disaster, 
    or other condition beyond the control of producers, the total 
    quantity of a crop of domestic Burley tobacco or Flue-cured tobacco 
    that is harvested and suitable for marketing is substantially less 
    than the expected yield for the crop, and that pool inventories for 
    the kind of tobacco involved have been depleted, effective for the 
    calendar year following the year in which the crop loss occurs, the 
    Secretary may reduce the minimum percentage of domestic tobacco 
    specified in subsection (a) of this section to a percentage below 75 
    percent, as determined by the Secretary, that reflects the reduced 
    availability of domestic supplies of the kind of tobacco involved.

                 (2) Determination of expected yield

        For purposes of paragraph (1), the Secretary shall determine the 
    expected yield for a crop of Burley tobacco or Flue-cured tobacco by 
    taking into consideration--
            (A) the total acreage planted to the crop (including acreage 
        that the producers were prevented from planting because of a 
        condition referred to in paragraph (1)); and
            (B) normal farm yields established for the crop.

                   (3) Deadline for determinations

        The Secretary shall make determinations under paragraph (1) 
    about crop losses and announce the reduced percentage of the 
    domestic tobacco pool not later than November 30 of the year in 
    which the applicable crop of Burley tobacco or Flue-cured tobacco is 
    harvested.

(g) Effective date

    This section shall be effective only for calendar year 1994.

(Feb. 16, 1938, ch. 30, title III, Sec. 320C, as added Pub. L. 103-66, 
title I, Sec. 1106(a), Aug. 10, 1993, 107 Stat. 318; amended Pub. L. 
103-465, title IV, Sec. 422(a), Dec. 8, 1994, 108 Stat. 4964.)


                               Amendments

    1994--Subsec. (g). Pub. L. 103-465 added subsec. (g).


                    Effective Date of 1994 Amendment

    Section 422(e) of Pub. L. 103-465 provided that: ``This section 
[amending this section, section 1445 of this title, and section 1313 of 
Title 19, Customs Duties, and enacting provisions set out as a note 
under section 1445 of this title] and the amendments made by this 
section shall be effective beginning on the effective date of the 
Presidential proclamation, authorized under section 421 [set out as a 
note under section 2135 of Title 19], establishing a tariff-rate quota 
pursuant to Article XXVIII of the GATT 1947 or the GATT 1994 with 
respect to tobacco.''
    [Proc. No. 6821, Sept. 12, 1995, 60 F.R. 47663, effective Sept. 13, 
1995, established tariff-rate quotas on certain tobacco.]
