Page 9

107 STAT. 320 PUBLIC LAW 103-66—AUG. 10, 1993 preceding year on the quantity of tobacco as to which the failure occurs. "(5) PURCHASE REQUIREMENTS.—Tobacco purchased by a mantdacturer under this subsection shall not be included in determining the quantity of tobacco purchased by the manufac- turer under section 320B. "(e) PURCHASE OF FLUE-CURED TOBACCO.— "(1) IN GENERAL.—^A domestic manufacturer of cigarettes described in subsection (b) shsdl purchase from the inventories of the producer-owned cooperative marketing association for Flue-cured tobacco described in section 320B(aX2), at the applicable list price published by the association, the quantity of tobacco described in paragraph (2). "(2) QUANTITY.—Subject to paragraph (3), the quantity of Flue-cured tobacco required to be purchased by a manufacturer during a calendar year under tms subsection shall equal V2 of the quantity of imported tobacco used by the manufacturer to produce cigarettes during the preceding calendar year that exceeds 25 percent of the quantity of all tobacco used by the manufacturer to produce cigarettes during the preceding cal- endar year. "(3) LIMITATION.—^If the total quantity of Flue-cured tobacco required to be purchased by all manufacturers under paragraph (2) would reduce the inventories of the producer-owned coopera- tive marketing association for Flue-cured tobacco to less than the reserve stock level for Flue-cured tobacco, the Secretary shall reduce the quantity of tobacco required to be purchased by manufacturers under paragraph (2), on a pro rata basis, to ensure that the inventories will not be less than the reserve stock level for Flue-cured tobacco. "(4) NONCOMPLIANCE.—^If a manufacturer fails to purchase from the inventories of the producer-owned cooperative market- ing association the quantity of Flue-cured tobacco required under this subsection, the manufacturer shall be subject to a penalty of 75 percent of the average market price (calculated to the nearest whole cent) for Flue-cured tobacco for the imme- diately preceding year on the quantity of tobacco as to which the failure occurs. "(5) PURCHASE REQUIREMENTS.—Tobacco purchased by a manufacturer under this subsection shall not be includea in determining the quantity of tobacco purchased by the manufac- turer under section 320B. "(f) CROP LOSSES DUE TO DISASTERS.— "(1) IN GENERAL.—^If the Secretary, in consultation with producer-owned cooperative marketing associations, determines that because of drought, insect or disease infestation, or other natural disaster, or other condition beyond the control of producers, the total quantity of a crop of domestic Burley tobacco or Flue-cured tobacco Uiat is harvested and suitable for marketing is substantially less than the expected yield for the crop, and that pool inventories for the kind of tobacco involved have been depleted, effective for the calendar year following the year in which the crop loss occurs, the Secretory mav reduce the minimum percentoge of domestic tobacco speci- fied in subsection (a) to a percentoge below 75 percent, as determined by the Secreterv, that reflects the reduced availabil- ity of domestic supplies of tne kind of tobacco involved.