[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: 7CFR723.402]

[Page 153-154]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 723--TOBACCO--Table of Contents
 
 Subpart D--Recordkeeping, Reporting Requirements, Marketing Penalties, 
                           and Other Penalties
 
Sec. 723.402  Warehouse authorized to retain producer marketing cards between sales.

    (a) General. Notwithstanding any other provisions of this part, to 
facilitate the scheduling of farmer's tobacco to the warehouse, 
marketing cards, with the permission of the producer, may be retained at 
the warehouse between sales even though no producer on the farm for 
which the card is issued has tobacco on the floor for sale or to be 
settled for, as provided in this section.
    (b) Warehouse eligible to retain producers marketing cards between 
sales. A warehouse shall be eligible to retain producer marketing cards 
between sales if the operator thereof shall:
    (1) Execute and file on a form approved by FSA a written request 
with the State FSA committee (or county FSA committee if designated by 
the State FSA committee).
    (2) Agree to be responsible to FSA for an amount of money equal to 
that amount that may be assessed against any producer as marketing quota 
penalties, if the marketing that is the basis of assessment of penalty 
occurred while the warehouse was authorized to have custody of the 
marketing card, for:
    (i) Burley or flue-cured tobacco for any overmarketing resulting 
from errors made at the warehouse in entering ``balance after sale'' 
pounds on the producer's marketing card or failure to deduct pounds sold 
on producer's marketing card.
    (ii) Tobacco falsely identified for marketing by use of the 
producer's marketing card.
    (iii) Producer's failure to account for any tobacco marketed by use 
of the producer's marketing card.
    (iv) Any burley or flue-cured tobacco marketed at the warehouse in 
excess of 103 percent of quota as shown on the producer's marketing 
card.
    (3) Agree to maintain an accurate and up-to-date journal containing 
a listing of all producer marketing cards retained by the warehouse to 
facilitate the scheduling of farmer's tobacco. The journal shall show 
for each card retained the:
    (i) Name of the operator;
    (ii) Serial number of farm;
    (iii) Marketing card number, if applicable;
    (iv) Date marketing card obtained from producer; and
    (v) Date marketing card returned to producer.

Such journals shall be maintained for the length of time and under the 
conditions required for other warehouse records.
    (4) Agree to return the marketing card to the producer at any time 
the producer may so request, or in the absence of a request, return it 
to the producer within 7 days after the close of the warehouse for the 
season.
    (5) Agree that this authorization may be terminated by FSA for 
failure to comply with provisions of this agreement.
    (c) Penalties considered to be the responsibility of warehouse 
operators. Notwithstanding any other provision of this part, a warehouse 
operator who executes and files a written request with the State FSA 
committee (or county FSA committee if designated by the State FSA 
committee) for authorization to retain producer's marketing cards at the 
warehouse, with grower permission, shall be responsible to FSA for an 
amount of money equal to the amount that may be assessed against the 
producer as marketing quota penalties if the marketing that is the basis 
of such assessment occurred while the warehouse was authorized to have 
custody of the marketing card, for:
    (1) Any burley or flue-cured tobacco overmarketings resulting from 
errors made at the warehouse in entering ``balance after sale'' pounds 
on the burley or flue-cured producer's marketing card or failure to 
deduct pounds sold on the producer's marketing card. However, the 
warehouse operator shall not be responsible for any penalty under this 
subparagraph, if such penalty would not have been assessed against

[[Page 154]]

the producer in accordance with Sec. 723.409(e) of this part.
    (2) Tobacco falsely identified for marketing by use of the 
producer's marketing card.
    (3) Producer's failure to account for any tobacco marketed by use of 
such producer's marketing card.
    (4) With respect to burley or flue-cured producers, tobacco marketed 
at the warehouse in excess of 103 percent of quota as shown on the 
producer's marketing card.