PART 1471—PIMA AGRICULTURE COTTON TRUST FUND (AGRICULTURE PIMA TRUST) AND AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST FUND (AGRICULTURE WOOL TRUST) Authority: Sections 12314 and 12315, Pub. L. 113-79, 128 Stat. 649, as amended by sections 12602 and 12603, Pub. L. 115-334, 132 Stat. 4490 (7 U.S.C. 2101 note and 7101 note). Source: 86 FR 68876, Dec. 6, 2021, unless otherwise noted. Subpart A—Agriculture Pima Trust § 1471.1 Provisions common to this subpart. (a) Agriculture Pima Trust Establishment. (2) Purpose. (3) Funding availability. (4) Definitions. Agriculture Pima Trust CCC FAS Secretary U.S. (b) Other provisions common to this subpart Affidavits. (2) Filing deadline. (3) Affirmation. (4) Document retention. (5) False statements. (6) Confidentiality. (7) Review of affidavits. (8) Finality of determinations by Secretary. (9) Timing of payments. (10) Sequester. § 1471.2 Pima cotton payments. From available funds in the Agriculture Pima Trust, CCC will annually make payments as follows: (a) Twenty-five percent of the amounts in the Agriculture Pima Trust shall be paid to one or more nationally recognized associations established for the promotion of pima cotton for use in textile and apparel goods, as determined by the Secretary, during the calendar year immediately preceding the payment. (b) Twenty-five percent of the amounts in the Agriculture Pima Trust shall be paid to yarn spinners of pima cotton that produce ring spun cotton yarns in the U.S. during the calendar year immediately preceding the payment, to be allocated to each yarn spinner in an amount that bears the same ratio as: (1) The yarn spinner's production of ring spun cotton yarns measuring less than 83.33 decitex (exceeding 120 metric number) from pima cotton in single and plied form during the prior calendar year; bears to (2) The production of the yarns described in paragraph (b)(1) of this section during the prior calendar year by all yarn spinners that qualify under this paragraph (b). (3) A yarn spinner will not receive an amount under this paragraph (b) that exceeds the cost of pima cotton that was: (i) Purchased during the prior calendar year; and (ii) Used in spinning any cotton yarns. (4) The Secretary will reallocate any amounts reduced by reason of the limitation under paragraph (b)(3) of this section to spinners using the ratio described in this paragraph (b), disregarding production of any spinner subject to that limitation. (c) Fifty percent of the amounts in the Agriculture Pima Trust shall be paid to manufacturers that certify, pursuant to the affidavit under § 1471.4, that, during the calendar year immediately preceding the payment, they used imported cotton fabric to produce men's and boys' shirts, to be allocated to each manufacturer in an amount that bears the same ratio as: (1) The dollar value (excluding duty, shipping, and related costs) of imported woven cotton shirting fabric of 80s or higher count and 2-ply in warp purchased by the manufacturer during the prior calendar year to produce men's and boys' shirts; bears to (2) The dollar value (excluding duty, shipping, and related costs) of the fabric described in paragraph (c)(1) of this section purchased during the prior calendar year by all manufacturers that qualify under this paragraph (c). § 1471.3 Affidavit of producers of ring spun pima cotton yarn. In addition to any applicable information requirements in § 1471.1, a producer of ring spun cotton yarn must annually provide an affidavit that affirms: (a) During the calendar year immediately preceding the payment, the yarn spinner used pima cotton to produce ring spun cotton yarns in the U.S. measuring less than 83.33 decitex (exceeding 120 metric number), in single and plied form; (b) In the prior calendar year, the yarn spinner actually produced the quantity, measured in pounds, of ring spun cotton yarns measuring less than 83.33 decitex (exceeding 120 metric number), in single and plied form, reported on the affidavit; (c) The yarn spinner maintains supporting documentation about such production during the prior calendar year that shows the actual quantity of such yarns produced, and evidencing the yarns as ring spun pima cotton yarns measuring less than 83.33 decitex (exceeding 120 metric number), in single and plied form; and (d) The dollar amount of pima cotton purchased during the prior calendar year that was used in spinning any cotton yarns, and for which the producer maintains supporting documentation. § 1471.4 Affidavit of manufacturers of cotton shirts. (a) Definition of qualifying fabric. (b) In general. (1) During the calendar year immediately preceding the payment, the manufacturer used qualifying fabric to cut and sew men's and boys' cotton shirts in the U.S. and the manufacturer has maintained production records evidencing the dollar value of qualifying fabric used to cut and sew men's and boys' cotton shirts; (2) The dollar value of qualifying fabric purchased by the manufacturer during the calendar year immediately preceding the payment, except that the dollar value of fabric reported shall not exceed the dollar value of qualifying fabric used by the manufacturer to cut and sew men's and boys' woven cotton shirts in the U.S. during the calendar year immediately preceding the payment, as supported by production records maintained under paragraph (b)(1) of this section; (3) The manufacturer maintains invoices and other supporting documentation (such as price lists and other technical descriptions of the fabric qualities) showing the dollar value of qualifying fabric purchased, the date of purchase, and evidencing the fabric as qualifying fabric; and (4) The imported cotton fabric purchased in the calendar year immediately preceding the payment was suitable for use in the manufacturing of men's and boys' cotton shirts. (c) Date of purchase. (d) Dollar value of purchase. (e) Fabric use. § 1471.5 Affidavit of pima cotton trade associations. In addition to any applicable information requirements in § 1471.1, trade associations filing a claim for a payment under the Agriculture Pima Trust must provide a statement that states that during the calendar year immediately preceding the payment they were, as determined by the Secretary, a domestic nationally recognized association established and operating for the promotion of pima cotton for domestic use in textile and apparel goods. Subpart B—Agriculture Wool Trust § 1471.10 Provisions common to this subpart. (a) Agriculture Wool Trust Establishment. (2) Purpose. (3) Funding availability. (4) Definitions. Agriculture Wool Trust CCC FAS HTS Secretary TRQ U.S. (b) Provisions common to this subpart Affidavits. (2) Filing deadline. (3) Affirmation. (4) Document retention. (5) False statements. (6) Confidential information. (7) Review of affidavits. (8) Finality of determination by the Secretary. (9) Timing of payments. (10) Proration and sequester. (11) HTS subheadings. § 1471.11 Payments to manufacturers of certain worsted wool fabrics. (a) Definitions. Eligible person Qualifying worsted wool fabric (b) Distribution of funds. (1) Payments for production under subheading 9902.51.11 of the HTS. (2) Payments for production under subheading 9902.51.15. (c) Annual affidavit In general. (2) Specific business information. (3) Manufacturing of wool. § 1471.12 Refund of duties paid on imports of certain wool products. (a) Eligible wool. (b) Payments Eligibility. (i) Imported eligible wool directly or indirectly; and (ii) Used the imported wool to make men's or boy's suits; or (iii) Further manufactured the eligible imported wool. (2) Payment amount. § 1471.13 Monetization of the wool tariff rate quota. (a) Definitions. (1) Lower duty rate. (2) Eligible person. (3) Qualifying worsted wool fabric. (i) Imported by an eligible person in the U.S.; and (ii) Used by the eligible person in the U.S. (A) In the case of wool fabric of the kind described in subheading 9902.51.11 or 9902.51.15 of the HTS, the qualifying fabric shall be used to produce worsted wool suits, suit-type jackets, or trousers for men and boys; or (B) In the case of wool fabric of the kind described in subheading 9902.51.16 of the HTS, the qualifying fabric shall be used in manufacturing. (4) Successor-in-interest. (i) An assignment of the claim; (ii) An assignment of the original eligible person's right to manufacture under the same trade name; or (iii) A reorganization of the eligible person. (b) Purposes. (1) Compensation for termination of the TRQ for qualifying worsted wool fabric; and (2) A payment that is equivalent to the amount the eligible person would have saved during the calendar year immediately preceding the payment for imports of qualifying worsted wool fabric if the lower duty rate under the applicable 2014 HTS subheading(s) of a qualifying worsted wool fabric were in effect. (c) Calculation of monetized TRQ payment. (1) Establishing the reported dollar value of imported worsted wool fabric, for each of the 2014 HTS subheadings of worsted wool fabric, during the calendar year immediately preceding the payment; (2) Subtracting the duty rate (converted to numeric value) for each applicable 2014 HTS subheading of worsted wool fabric that would have been paid in calendar year 2014 from the duty rate (converted to numeric value) that was actually paid in the calendar year immediately preceding the payment; (3) For each applicable 2014 HTS subheading of worsted wool fabric, multiplying the numeric values described in paragraphs (c)(1) and (2) of this section; and (4) Adding each product obtained in paragraph (c)(3) of this section. (d) Annual affidavit In general. (2) Specific business information Imports and production. (ii) Direct and indirect importers. (iii) Import documentation. (3) Production of garments or manufacturing of qualifying worsted wool fabric Production of garments. (ii) Manufacturing of qualifying worsted wool fabric. § 1471.14 Wool yarn, wool fiber, and wool top duty compensation payment. (a) Definitions. (1) Duty. (2) Eligible person. (3) Qualifying wool. (4) Successor-in-interest. (i) An assignment of the claim; (ii) An assignment of the eligible person's right to manufacture under the same trade name; or (iii) A reorganization of the eligible person. (b) Import duties. (c) Duty compensation payment Calculation of payment. (2) Savings for each subheading. (i) The reported dollar value of imports under a HTS subheading during the calendar year immediately preceding the payment; and (ii) The duty applicable to that HTS subheading in the calendar year preceding the payment, converted to numeric value. (3) Sum of subheading savings. (4) Duty compensation payment amount. (d) Annual affidavit required In general. (2) Specific business information Imports and production. (A) Imports into the U.S. of qualifying wool by the eligible person; and (B) Such qualifying wool that was manufactured in the U.S. by the eligible person. (ii) Direct and indirect importers In general. (B) Reported dollar value. (C) Affirmation. ( 1 ( 2 ( 3 (iii) Import documentation. (3) Manufacture of qualifying wool.