USDA Reverses Cotton Import Fee Decrease
Summary
The USDA's Agricultural Marketing Service has withdrawn a direct final rule that would have decreased cotton import fees. Due to significant adverse comments, the fees will remain unchanged, continuing the previous assessment rate.
What changed
The U.S. Department of Agriculture's Agricultural Marketing Service (AMS) has withdrawn a direct final rule that was intended to decrease the import assessment rate for cotton and cotton-containing products from $0.013247/kg to $0.12388/kg, effective March 1, 2026. This decrease was initially proposed to reflect a decline in the weighted average price of upland cotton received by U.S. farmers in 2024.
AMS has decided to withdraw the rule because it received significant adverse comments. As a result, the import assessments will remain at their current, unchanged rate. Importers and manufacturers of cotton products should continue to pay the existing assessment rate. For specific guidance or questions regarding this reversal, contact ST&R's textile and apparel practice leader.
What to do next
- Continue to pay the existing cotton import assessment rate.
- Monitor future USDA announcements regarding the Cotton Research and Promotion Order.
Source document (simplified)
March 2, 2026 // Trade Report
Cotton Import Fee Decrease Reversed
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The Department of Agriculture’s Agricultural Marketing Service is withdrawing a direct final rule that would have implemented effective March 1 a 6.5 percent decrease from $0.013247/kg to $0.12388/kg in the assessments paid by importers of cotton and cotton-containing products under the Cotton Research and Promotion Order in order to reflect a decline in the weighted average price of upland cotton received by U.S. farmers in 2024.
AMS indicates that it received significant adverse comment in response to the direct final rule. Accordingly, the agency is withdrawing the rule and the assessments will remain unchanged.
For more information, please contact ST&R’s textile and apparel practice leader Elise Shibles at (415) 490-1403 or via email.
Copyright © 2026 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.
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