Title 7, AgricultureRelease 119-110

§1372 Payment, Collection, and Refund of Penalties

Title 7 › CHAPTER 35 — AGRICULTURAL ADJUSTMENT ACT OF 1938 › SUBCHAPTER II — LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING QUOTAS, AND MARKETING CERTIFICATES › Part C — Administrative Provisions › subpart ii — adjustment of quotas and enforcement › § 1372

Last updated Sep 23, 2026|Official source

Summary

Buyers must collect the penalty when wheat, cotton, or rice is sold to someone inside the United States. Other penalties in part B must be collected and paid the way the Secretary of Agriculture’s rules say. The person who owes the penalty must send it to the Secretary, unless someone else is required to collect it — then that person must send it. These penalty payments go into the U.S. Treasury general fund except as section 1314h says otherwise. If a person files a claim with the Secretary within two years after paying a penalty and the Secretary finds it was wrongly collected and the claimant paid it, the Secretary will tell the Treasury to pay the refund under Treasury rules. The Secretary may set rules to identify farms for handling these payments and to govern how claims and refunds are filed and decided. No penalties apply to crops grown only for public agricultural experiments. Beginning with the 1978 crops, no penalty applies to crops grown on State prison farms that stay within that State prison system.

Full Legal Text

Title 7, §1372

Agriculture, Source: USLM XML via OLRC

(a)The penalty with respect to the marketing, by sale, of wheat, cotton, or rice, if the sale is to any person within the United States, shall be collected by the buyer.
(b)All penalties provided for in part B of this subchapter shall be collected and paid in such manner, at such times, and under such conditions as the Secretary may by regulations prescribe. Such penalties shall be remitted to the Secretary by the person liable for the penalty, except that if any other person is liable for the collection of the penalty, such other person shall remit the penalty. Except as provided in section 1314h of this title, the amount of such penalties shall be covered into the general fund of the Treasury of the United States.
(c)Whenever, pursuant to a claim filed with the Secretary within two years after payment to him of any penalty collected from any person pursuant to this chapter, the Secretary finds that such penalty was erroneously, illegally, or wrongfully collected and the claimant bore the burden of the payment of such penalty, the Secretary shall certify to the Secretary of the Treasury for payment to the claimant, in accordance with regulations prescribed by the Secretary of the Treasury, such amount as the Secretary finds the claimant is entitled to receive as a refund of such penalty. Notwithstanding any other provision of law, the Secretary is authorized to prescribe by regulations for the identification of farms and it shall be sufficient to schedule receipts into special deposit accounts or to schedule such receipts for transfer therefrom, or directly, into the separate fund provided for in subsection (b) by means of such identification without reference to the names of the producers on such farms. The Secretary is authorized to prescribe regulations governing the filing of such claims and the determination of such refunds.
(d)No penalty shall be collected under this chapter with respect to the marketing of any agricultural commodity grown for experimental purposes only by any publicly owned agricultural experiment station. Effective with the 1978 crops, no penalty shall be collected under this chapter with respect to the marketing of any agricultural commodity grown on State prison farms for consumption within such State prison system.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1314h of this title, referred to in subsec. (b), was repealed by Pub. L. 108–357, title VI, § 611(a), Oct. 22, 2004, 118 Stat. 1522.

Amendments

1986—Subsec. (b). Pub. L. 99–272 substituted “Except as provided in section 1314h of this title, the” for “The”. 1979—Subsec. (d). Pub. L. 96–113 inserted provisions respecting exemption from marketing quota penalties for State prison farms. 1940—Subsec. (c). Act July 2, 1940, substituted “within two years” for “within one year” and inserted “and the claimant bore the burden of the payment of such penalty” after “wrongfully collected” in first par. and inserted second par. authorizing

Regulations

for farm identification, etc. 1938—Subsecs. (c), (d). Act Apr. 7, 1938, added subsecs. (c) and (d).

Statutory Notes and Related Subsidiaries

Effective Date

of 1986 Amendment Pub. L. 99–272, title I, § 1106(b), Apr. 7, 1986, 100 Stat. 91, provided that the amendment made by that section is effective for the 1986 and subsequent crops of tobacco. Rulemaking ProceduresSecretary of Agriculture to implement

Amendments

by Pub. L. 99–272 without regard to provisions requiring notice and other procedures for public participation in rulemaking contained in section 553 of Title 5, Government Organization and Employees, or in any other directive of the Secretary, see section 1108(c) of Pub. L. 99–272, set out as a note under section 1301 of this title.

Reference

Citations & Metadata

Citation

7 U.S.C. § 1372

Title 7, Agriculture

Last Updated

Sep 23, 2026

Release point: 119-110