USDA Issues Final Rule on Research and Promotion Tax for Mangos (Begins Jan. 3, 2005)

According to AMS, while this final rule is effective November 3, 2004, collection and remittance of assessments (also known as taxes) and applicable reporting will not begin until January 3, 2005.

First Handlers & Importers to Pay Assessments of Cent Per Pound on Mangoes

Under the Order, first handlers and importers of 500,000 or more pounds of mangos per calendar year will pay an initial assessment to the National Mango Promotion Board (Board). The final rule states that the assessment rate will be cent per pound on domestic and imported mangoes.

AMS states that the Board will conduct a generic program of research and promotion, industry information, and consumer information needed for maintenance, expansion, and development of domestic markets for fresh mangoes.

Highlights of Requirements Imposed on Imported Mangoes

The following are highlights of the provisions of new Subpart A to 7 CFR Part 1206 (partial list):

Definition of importer. 7 CFR 1206.9 states that importer means any person importing 500,000 or more pounds of mangos into the U.S. in a calendar year as a principal or as an agent, broker, or consignee of any person who produces or handles mangos outside of the U.S. for sale in the U.S. and who is listed as the importer of record for such mangos.

Exemptions from assessments. 7 CFR 1206.43 provides that any first handler or importer of less than 500,000 pounds of mangos per calendar year may claim an exemption from the assessments required under 7 CFR 1206.42. In addition, mangos produced domestically and exported from the U.S. may annually claim an exemption from these assessments. 7 CFR 1206.43(b) - (f) explains that process by which an importer or first handler may apply for and obtain a certificate of exemption, as well as the procedures for applying for an exemption for a subsequent calendar year.

Definition of mangos. According to 7 CFR 1206.11, mangos are all fresh fruit of Mangifera indica L. of the family Anacardiaceae.

Payment of assessment for mangos imported for marketing in the U.S. 7 CFR 1206.42 states, among other things, that each importer of mangoes shall pay an assessment to the Board through U.S. Customs and Border Protection (CBP) on mangos imported for marketing in the U.S.

The import assessment will be uniformly applied to imported mangos that are identified by the numbers HTS 0804.50.4040 and 0804.50.6040. In addition, assessments due on imported mangos shall be paid when they enter or are withdrawn for consumption in the U.S.

Board will include eight importers. In addition to designating other Board members, 7 CFR 1206.30 provides that the Board will include eight importers. 7 CFR 1206.30(b) states that the importer seats will be allocated based on the volume of mangos imported into the Customs Districts identified by their name and Code Number as defined in the HTS. The initial allocation will be two seats for District I, three seats for District II, two seats for District III, and one seat for District IV. See 7 CFR 1206.30(b)(1) - (4) for the locations covered by Districts I - IV.

(See ITT's Online Archives or 09/06/02 and 10/15/03 news, 02090625 and 03101520, for BP summaries of AMS' first and second proposed rules on the Mango Order.)

AMS Contact - Jeanette Palmer (202) 720-9915

AMS Final Rule (D/N FV-02-707-FR, FR Pub 10/04/04) available athttp://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-21622.pdf