[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1427.108]

[Page 504-505]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1427_COTTON--Table of Contents
 
           Subpart C_Upland Cotton User Marketing Certificates
 
Sec.  1427.108  Payment.

    (a) Payments under this subpart shall be determined by multiplying:
    (1) The payment rate, determined under Sec.  1427.107, by
    (2) The net weight (gross weight minus the weight of bagging and 
ties), determined under paragraph (b) of this section, of eligible 
upland cotton bales an eligible domestic user opens or an eligible 
exporter sold for export during the Friday through Thursday period 
following a week in which a payment rate is established.
    (b) For the purposes of this subpart, the net weight shall be 
determined based upon:

[[Page 505]]

    (1) For domestic users, the weight on which settlement for payment 
of the cotton was based (landed mill weight);
    (2) For reginned motes processed by an end user who converted such 
motes, without rebaling, to an end use in a continuous manufacturing 
process, the net weight of the reginned motes after final cleaning;
    (3) For exporters, the shipping warehouse weight or the gin weight 
if the cotton was not placed in a warehouse, of the eligible cotton 
unless the exporter obtains and pays the cost of having all the bales in 
the shipment reweighed by a licensed weigher and furnishes a copy of the 
certified reweights.
    (c) For the purposes of this subpart, eligible upland cotton will be 
considered--
    (1) Consumed by the domestic user on the date the bale is opened for 
consumption; and
    (2) Exported by the exporter on the date CCC determines is the date 
on which the cotton is shipped through July 31, 2008.
    (d) Payments under this subpart shall be made available upon 
application for payment and submission of supporting documentation, 
including proof of purchase and consumption of eligible cotton by the 
domestic user or proof of export of eligible cotton by the exporter, as 
required by the CCC-issued provisions of the Upland Cotton Domestic 
User/Exporter Agreement.