not sales of both, the decline or advance of the next higher or the next lower grade so sold shall be deducted from, or added to, as the case may be, the value on the last preceding business day of the grade the value of which on such given day is sought to be ascertained.

(c) If on such given day there shall have been in such market no sale of spot cotton of any grade, the value of each grade shall be deemed to be the same as its value therein on the last preceding business day, unless in the meantime there shall have been bona fide bids and offers, or sales of hedged cotton, or other sales of cotton, or changes in prices of futures contracts made subject to the act, which in the usual course of business would clearly establish a rise or fall in the value of spot cotton in such market, in which case such rise or fall may be calculated and added to or deducted from the value on the preceding business day of cotton of all grades affected thereby.

§ 28.2 Terms defined.

As used throughout this subpart, unless the context otherwise requires, the following terms shall be construed, respectively, to mean:

(a) The act. The United States Cotton Standards Act, approved March 4, 1923 (42 Stat. 1517; 7 U.S.C. 51 et seq.) with such amendments as may be made from time to time.

(b) Regulations. Regulations mean the provisions in this subpart.

(c) Department. The United States Department of Agriculture.

(d) Secretary. The Secretary of Agriculture of the United States, or any officer or employee of the Department to whom authority has heretofore been delegated, or to whom authority may hereafter be delegated, to act in his stead.

(e) Service. The Agricultural Marketing Service of the U.S. Department of Agriculture.

(f) Administrator. The Administrator of the Agricultural Marketing

Service, or any officer or employee of the Service, to whom authority has heretofore been delegated, or to whom authority may hereafter be delegated, to act in his stead.

(g) Division. The Cotton Division of the Agricultural Marketing Service.

(h) Director. The Director of the Cotton Division, or any officer or employee of the Division to whom authority has heretofore been delegated, or to whom authority may hereafter be delegated, to act in his stead.

(i) Board. Board of cotton examin

ers.

(j) Cotton examiner. An officer of the Department so designated by the Director.

(k) License. A license issued under the Act by the Secretary to sample cotton.

(1) Licensed warehouse or gin. A cotton warehouse or gin licensed under the United States Cotton Standards Act to sample cotton.

(m) Cotton. The word "cotton" as used in the act means cotton of any variety produced within the continental United States, including linters. In this subpart, for administrative convenience the word "cotton" is used to signify vegetable hair removed from cottonseed in the usual process of ginning, and the word "linters" as defined in paragraph (n) of this section.

(n) Linters. Vegetable hair removed from cottonseed subsequent to the usual process of ginning.

(0) Upland Cotton. All cotton grown anywhere within the continental United States including the growths sometimes referred to as Upland, Gulf, and Texas cotton, but excluding American Pima growths.

(p) Official Cotton Standards. Official cotton standards of the United States for the grade of American Upland cotton, and American Pima cotton, for length of staple, and for fiber fineness and maturity, adopted or established pursuant to the act, or any change or replacement thereof.

(q) Universal standards. The official cotton standards of the United States for the grade of American upland cotton.

(r) Person. Individual, association, partnership, or corporation, or two or

more individuals having a joint or common interest.

(s) Owner. Person who through financial interest, owns, controls, or has the disposition either of cotton or of samples.

(t) Custodian. Person who has possession or control of cotton or of samples, as agent, controller, broker, or factor, as the case may be.

(u) State. A State, Territory, or district of the United States.

(Sec. 2, Pub. Res. 72-73, 47 Stat. 1621 (7 U.S.C. 51b); sec. 3c, Pub. L. 75-28, 50 Stat. 62 (7 U.S.C. 473c))

[22 FR 10932, Dec. 28, 1957, as amended at 28 FR 10633, Oct. 3, 1963; 30 FR 6637, May 14, 1965; 31 FR 7734, June 1, 1966; 34 FR 9847, June 26, 1969; 42 FR 24711, May 16, 1977; 46 FR 24927, May 4, 1981]

ADMINISTRATIVE AND GENERAL

§ 28.3 Director.

The Director shall perform for and under the supervision of the Secretary and the Administrator, such duties as the Secretary or the Administrator may require in enforcing the provisions of the act and the regulations issued thereunder.

§ 28.4 Boards of cotton examiners.

Boards of cotton examiners shall be maintained at points designated for the purpose by the Administrator. A board of supervising cotton examiners shall be constituted for duty as assigned; and an Appeal Board of Review Examiners shall be constituted to which may be referred requests for the review of the classification and/or comparison of cotton performed by other boards appointed in accordance with this section. The Appeal Board of Review Examiners shall be located at Memphis, Tennessee, except when the Director shall require that committees of the board meet to perform its functions elsewhere. The members of all boards and the chairman of each shall be designated for the purpose by the Director.

§ 28.5 Secretary, board of cotton examin

ers.

The Director shall designate a secretary for each board. It shall be the duty of the secretary of the board to

receive all correspondence relating to the classification of cotton under the act and to see that all samples are prepared for classification and/or comparison in such manner that the name of the owner and/or the custodian shall be unknown to the members of the board, who are detailed to classify or compare the cotton, until after the samples are classified.

§ 28.6 Acting secretary of board.

In the event of the absence or incapacity of the secretary of the board the chairman of the board shall designate temporarily an acting secretary of the board in his stead. Any person thus designated shall be thereby disqualified to act as a member of the board in the classification of cotton during the term of such temporary appointment.

§ 28.7 Chairman of board; responsibility.

Subject to this subpart and the instructions of the Director, the chairman of each board shall be responsible for the proper performance of the duties imposed on such board and on the persons connected therewith.

§ 28.8 Classification of cotton; determination.

For the purposes of the act, the classification and comparison of any cotton, samples, or types submitted to the Department shall be determined or made only by cotton examiners properly qualified and designated as such by the Director, and the certificate of a board of cotton examiners with respect to any cotton shall be deemed to be the certificate of the Department.

§ 28.9 Inspection; sampling; classification.

The inspection, sampling, and classification of cotton and cotton linters in the United States pursuant to the act shall be performed as prescribed in this subpart. Subject in general to the provisions of this subpart the Director may issue from time to time instructions for the sampling, classification, and issuance of classification memoranda for cotton or cotton linters classed for special programs and other Government agencies, including the