[Code of Federal Regulations]
[Title 7, Volume 7]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR723.310]

[Page 148]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 723--TOBACCO--Table of Contents
 
 Subpart C--Tobacco Subject to Quota, Exemptions From Quotas, Marketing 
                  Cards, and General Penalty Provisions
 
Sec. 723.310  Date penalty is due.

    (a) Payment of penalty. Penalties shall become due at the time the 
tobacco is marketed, except that in the case of false identification or 
failure to account for disposition, the penalty shall be due on the date 
of such false identification or failure to account for disposition. The 
penalty shall be paid by remitting the amount due to the State FSA 
office not later than the end of the calendar week in which the tobacco 
becomes subject to penalty. A draft, money order, or check drawn payable 
to the Farm Service Agency may be used to pay any penalty, but any such 
draft or check shall be received subject to payment at par.
    (b) Auction sale net proceeds. If the penalty due on any auction 
sale of tobacco by a producer is in excess of the net proceeds of such 
sale (gross amount for all lots included in the sale less usual 
warehouse charges), the amount of the net proceeds accompanied by a copy 
of the tobacco sale bill covering such sale may be remitted as the full 
penalty due. Usual warehouse charges shall not include the following:
    (1) Advances to producers,
    (2) Charges for hauling, or
    (3) Any other charges not usually incurred by producers in marketing 
tobacco through a warehouse.
    (c) Nonauction sales. Nonauction sales of excess tobacco shall be 
subject to the full rate of penalty and shall be paid in full even 
though the penalty may exceed the proceeds for the sale of tobacco.