§7416 Assessments

Summary

When an order covers an agricultural product, the people who first handle or sell that product in the United States must pay an assessment on what they produce and market. Importers who bring the product into the United States must pay if the order covers imports. The money collected must be sent to the board the order creates, in the way and at the times the order says. No one can be charged more than one assessment for the same product. The board suggests one or more assessment rates to the Secretary. If the Secretary approves, the rates take effect. An order can require a vote before any rate increase. The Secretary can set late-payment and interest charges for people who miss payments. While the board waits to spend the money, it may invest it in safe places like U.S. government or state bonds, bank CDs at Federal Reserve member banks, or obligations fully guaranteed by the U.S. When an order starts and until a vote result is announced, the board must put 10 percent of collected assessments into an escrow account for possible refunds. People who paid can get refunds if the order is rejected in the vote, following the order’s rules; refunds are paid after proof of payment and are prorated if the escrow fund is too small. If the order is approved, the escrow is closed and the funds become available to the board.