[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: 7CFR1435.318]

[Page 576]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1435_SUGAR PROGRAM--Table of Contents
 
            Subpart D_Flexible Marketing Allotments For Sugar
 
Sec.  1435.318  Penalties and assessments.

    (a) Under Sec.  359b(c)(3) of the Agricultural Adjustment Act of 
1938, as amended, any sugar beet or sugarcane processor who knowingly 
markets sugar or sugar products in excess of the processor's allocation 
in violation of Sec.  1435.307 shall be liable to CCC for a civil 
penalty in an amount equal to 3 times the U.S. market value, at the time 
the violation was committed, of that quantity of sugar involved in the 
violation.
    (b) Under Sec.  359f(c)(5) of the Agricultural Adjustment Act of 
1938, as amended, any producer of sugarcane whose farm has a 
proportionate share, and who knowingly harvests or allows to be 
harvested an acreage of sugarcane for sugar or seed in excess of the 
farm's proportionate share shall pay to CCC a civil penalty in an amount 
equal to 1.5 times the U.S. market value of the quantity of sugar that 
is marketed by the processor of such sugarcane in excess of the 
allocation of such processor, for the year in which the violation was 
committed. However, civil penalties will not be assessed when the 
producer harvests acreage for sugar or seed in excess of the farm's 
proportionate share, if the excess sugarcane harvested is:
    (1) Processed by a sugarcane processor that does not exceed its 
marketing allocation; or
    (2) Diverted to a use other than sugar or seed if:
    (i) The sugarcane producer requests and pays for a CCC field 
inspection, and
    (ii) CCC verifies the disposition of the excess harvest is not for 
sugar or seed.
    (c) Any penalty assessed under paragraph (b) of this section shall 
be prorated among the producers of all sugarcane acquired by the 
processor from excess acres.
    (d) Any person filing a false acreage report that exceeds tolerance 
will be subject to an assessment not to exceed $10,000. Whenever the 
failure of a producer to comply fully with the terms and conditions 
applicable to proportionate shares would result in an assessment, the 
Deputy Administrator may authorize the waiver or reduction of the 
assessment in such amounts as determined to be equitable about the 
seriousness of the failure, the producer's good-faith effort to comply 
fully with such terms and conditions, and the producer's substantial 
performance.
    (e) Any person who knowingly violates any provision of this subpart 
other than paragraph (d) of this section is subject to the assessment of 
a civil penalty by CCC of not more than $5,000 for each violation.

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