2026-12563Proposed RuleWallet

USDA Tweaks Cotton Import Assessment Rates

Published Date: 6/23/2026

Proposed Rule

Summary

The USDA is proposing to lower the value used to calculate extra fees on imported cotton, so importers pay the same as U.S. cotton growers. This update keeps the fees fair and reflects changes since 2024. Importers and businesses dealing with cotton products should weigh in by July 23, 2026, before the new rules take effect.

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Estimated $5.7M drop in industry assessments

The Cotton Board estimates that if import volumes remain at 2025 levels, the proposed lower assessment would reduce total importer assessments by about $5,693,178. The rule also notes producer assessments totaled $35.4 million and importer assessments totaled $47.6 million (December 31, 2024 auditor report).

Imported cotton fee drops to 1.1662¢/kg

The proposed rule lowers the total assessment on imported cotton from 1.3247 cents per kilogram to 1.1662 cents per kilogram (a decrease of 0.1585 cents/kg). The rule shows the math used: NASS 2024 marketing-year Upland price $0.632 per pound → $1.4506 per kg; supplemental assessment 0.5% = $0.007253 per kg; plus the $1-per-bale equivalent $0.004409 per kg = total $0.011662 per kg (1.1662 cents/kg). This change directly reduces the per-kg fees importers pay on cotton and cotton-containing products.

Import Assessment Table revised by HTS code

AMS proposes to amend the Import Assessment Table in Sec. 1205.510(b)(3) to revise the cents-per-kilogram assessment for each Harmonized Tariff Schedule (HTS) number subject to assessment. The published table lists specific HTS codes and their updated conversion factors and cents/kg rates (for example, many HTS items show 1.1662 cents/kg or other cents/kg values tied to conversion factors).

Organic imports may be exempt or reimbursable

Imported organic cotton and cotton products may be exempt from the assessment if eligible under Sec. 1205.519. Any importer can request reimbursement for assessments collected on non-Upland cotton or on cotton produced in the United States by following Sec. 1205.520 procedures.

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Key Dates

Published Date
Comments Due
6/23/2026
7/23/2026

Department and Agencies

Department
Independent Agency
Agency
Agriculture Department
Agricultural Marketing Service
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