[Federal Register Volume 60, Number 50 (Wednesday, March 15, 1995)]
[Rules and Regulations]
[Pages 13896-13898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6371]
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DEPARTMENT OF AGRICULTURE
9 CFR Parts 91 and 92
[Docket No. 94-076-1]
Cattle Imported In-Bond for Feeding and Return to Mexico
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Interim rule and request for comments.
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SUMMARY: We are amending the animal exportation and importation
regulations by removing provisions that allow the temporary, in-bond
importation of cattle from Mexico into the United States for feeding
and return to Mexico for slaughter. We are taking this action because
the U.S. Customs Service, to comply with provisions of the North
American Free Trade Agreement, has discontinued its collection of
duties and bonds on cattle imported into the United States from Mexico.
Without a bond, we are unable to meaningfully penalize importers who
fail to return those cattle to Mexico. We believe, therefore, that the
current in-bond program must be terminated to prevent the dissemination
into the United States of animal diseases by in-bond cattle that remain
in the United States in violation of the regulations.
DATES: Interim rule effective March 30, 1995. Consideration will be
given only to comments received on or before May 15, 1995.
ADDRESSES: Please send an original and three copies of your comments to
APHIS, PPD, Regulatory Analysis and Development, 4700 River Road Unit
118, Riverdale, MD 20737-1238. Please state that your comments refer to
Docket No. 94-076-1. Comments received may be inspected at USDA, room
1141, South Building, 14th Street and Independence Avenue SW.,
Washington, DC, between 8 a.m. and 4:30 p.m., Monday through Friday,
except holidays. Persons wishing to inspect comments are requested to
call ahead on (202) 690-2817 to facilitate entry into the comment
reading room.
FOR FURTHER INFORMATION CONTACT: Dr. David Vogt, Senior Staff
Veterinarian, APHIS, Veterinary Services, Import/Export Animals Staff,
4700 River Road Unit 39, Riverdale, MD 20737-1231; (301) 734-8170.
SUPPLEMENTARY INFORMATION:
Background
The regulations in 9 CFR part 92 prohibit or restrict the
importation of certain animals into the United States to prevent the
introduction of communicable diseases of livestock and poultry. Subpart
D of part 92 (Secs. 92.400 through 92.435), referred to below as the
regulations, pertains to the importation of ruminants. Sections 92.424
through 92.429 of the regulations contain specific provisions regarding
the importation of ruminants, including cattle, from Mexico.
Before the effective date of this rule, Sec. 92.427(e) of the
regulations provided for the temporary importation of cattle from
Mexico into the United States under United States Customs bond for
feeding and return to Mexico for slaughter. Cattle imported under this
in-bond program were exempt from some requirements that applied to the
importation of other cattle from Mexico, but were subject to additional
restrictions during the time they were in the United States that did
not apply to other cattle imported from Mexico.
Specifically, in-bond cattle from Mexico could be imported without
meeting the requirements of Sec. 92.427(c)(1) regarding herd tests for
tuberculosis and without meeting the requirements of Sec. 92.427(d)(1)
regarding herd tests for brucellosis if the cattle were: (1) Moved
directly by land from the port of entry to an approved quarantined
feedlot; (2) removed from the quarantined feedlot only to be moved
directly to a Mexican port of entry for return to Mexico for slaughter;
and (3) moved only in trucks or railway cars that had been sealed with
a seal applied by a U.S. Department of Agriculture inspector.
Additionally, in-bond cattle from Mexico could be imported without
the official record of negative brucellosis test required by
Sec. 92.424(b) and without meeting the requirements of Sec. 92.427(d)
regarding brucellosis if the cattle were under 24 months of age and
were accompanied by a certificate stating that the cattle had been
vaccinated for brucellosis.
The movement, quarantine, and vaccination requirements discussed
above were designed to prevent the transmission of animal diseases from
in-bond Mexican cattle to other animals in the United States. However,
if the importer of the in-bond Mexican cattle did not adhere to those
requirements, there was a serious risk that those cattle, which had not
been tested for tuberculosis or brucellosis prior to entering the
United States, would spread disease to domestic livestock. As a means
of ensuring that the in-bond Mexican cattle were maintained in
accordance with the regulations while in the United States and were
actually returned to Mexico upon completion of their feeding period in
the United States, the regulations required that the importer of the
Mexican cattle post a [[Page 13897]] bond with the U.S. Customs Service
at the port of entry. The bond required by the Customs Service could be
as high as three times the duty value of the cattle, so it was clearly
in an importer's best interests to meet all the requirements of the
regulations.
However, on January 1, 1994, the U.S. Customs Service discontinued
its collection of duties and bonds on imported Mexican cattle in order
to comply with provisions of the North American Free Trade Agreement.
As a consequence, importers no longer had to post a bond when importing
cattle from Mexico into the United States for feeding and return to
Mexico, although the Customs Service continued to track such cattle
entering and leaving the United States. The penalty for failing to
return in-bond Mexican cattle to Mexico upon completion of their
feeding period has been reduced to $400.
Since the Customs Service discontinued its collection of bonds, the
Animal and Plant Health Inspection Service (APHIS) has monitored the
in-bond program to determine whether the program could remain viable
despite the lack of a posted bond. Recently, some importers of cattle
under the in-bond program have indicated to APHIS that they would be
willing to accept the $400 fine--a relatively insignificant amount when
compared to the bond that would have been forfeited before the Customs
Service discontinued collecting the bond--if the importers could move
their cattle to slaughter or other destinations in the United States
without returning the cattle to Mexico for slaughter, as required under
the in-bond program's regulations. Evidently, those importers believe
that even with the $400 fine, it would be more profitable to sell their
cattle in the United States than in Mexico. In fact, we are now aware
of at least one case in which an importer did remove his in-bond
Mexican cattle from a quarantined feedlot and send the cattle to
slaughter in the United States. APHIS has the option of pursuing civil
and criminal action against an importer in such cases, but we believe
that there remains the strong possibility that importers will choose to
accept the risk of criminal and civil action against them sometime in
the future in order to move their in-bond Mexican cattle to slaughter
or other destinations in the United States.
As stated above, in-bond Mexican cattle were exempted from meeting
certain testing requirements for tuberculosis and brucellosis; clearly,
cattle that have not met those testing requirements present a greater
than average risk of spreading disease to domestic livestock. The
quarantine and movement restrictions of the in-bond program were
specifically designed to mitigate that increased disease risk, so it
follows that cattle moved in violation of those quarantine and movement
restrictions would present a greater than average disease risk. It has
become evident that the posting of a bond is necessary to ensure
compliance with the provisions of the in-bond program, but APHIS has no
statutory authority to institute a bond system similar to that which
had been administered by the U.S. Customs Service at U.S. ports of
entry on the Mexican border prior to January 1, 1994. Therefore, we
believe that it is necessary for us to terminate the in-bond program
described in Sec. 92.427(e) in order to prevent the introduction into,
and dissemination within, the United States of disease.
Therefore, we are removing Sec. 92.427(e), ``Cattle imported in
bond for feeding and return to Mexico,'' in its entirety. The
termination of the in-bond program also entails the removal of five
references to the in-bond program that are found elsewhere in part 92
and in the animal export regulations in 9 CFR part 91. Specifically, we
are amending:
Section 91.3(a) by removing a provision that exempts in-
bond Mexican cattle from the requirement that all animals intended for
exportation to Mexico be accompanied from the State of origin of the
export movement to the border of the United States by an origin health
certificate;
Section 91.5 by removing a provision that exempts in-bond
Mexican cattle from certain pre-export health testing requirements;
Section 92.424(b) by removing a provision that exempts in-
bond Mexican cattle from the requirement for an official record of
brucellosis testing;
Section 92.426(a) by removing a provision requiring in-
bond Mexican cattle to be inspected at the port of entry and found free
from communicable disease and fever tick infestation; and
Section 92.427(c)(2) by removing a provision that exempts
in-bond Mexican cattle from the M-branding requirement.
Miscellaneous
As noted above, we are removing Sec. 92.427(e) in its entirety,
including footnote 10, which cites regulations of the U.S. Customs
Service concerning movement in bond. Therefore, to keep the footnotes
in the subpart numbered consecutively, we are amending Secs. 92.430,
92.431, 92.433, 92.434, and 92.435 by redesignating footnotes 11
through 22 as footnotes 10 through 21.
Emergency Action
The Administrator of the Animal and Plant Health Inspection Service
has determined that conditions exist that warrant publication of this
interim rule without prior opportunity for public comment. The recent
steep devaluation of the Mexican peso has created a strong economic
incentive for importers of in-bond cattle from Mexico to send such
cattle to slaughter in the United States, rather than in Mexico as
required by the regulations. Because Customs has discontinued
collecting bonds, prompt action is necessary to prevent the
dissemination into the United States of animal diseases by in-bond
Mexican cattle that remain in the United States in violation of the
regulations. We are making this rule effective 15 days after its
publication in the Federal Register to provide importers in the United
States and exporters in Mexico adequate notice of this action in order
to prevent undue stress on cattle already in transit from Mexico and
undue hardship on the owners, importers, and exporters of cattle from
Mexico.
Because prior notice and other public procedures with respect to
this action are impracticable and contrary to the public interest under
these conditions, we find good cause under 5 U.S.C. 553 to make this
rule effective 15 days after its publication in the Federal Register.
We will consider comments that are received within 60 days of
publication of this rule in the Federal Register. After the comment
period closes, we will publish another document in the Federal
Register. It will include a discussion of any comments we receive and
any amendments we are making to the rule as a result of the comments.
Executive Order 12866 and Regulatory Flexibility Act
This rule has been reviewed under Executive Order 12866. The rule
has been determined to be not significant for purposes of Executive
Order 12866 and, therefore, has not been reviewed by the Office of
Management and Budget.
This rule amends the animal exportation and importation regulations
by removing provisions regarding the temporary, in-bond importation of
cattle from Mexico into the United States for feeding and return to
Mexico for slaughter.
Several feedlots in the United States could be economically
affected by this proposed change in the regulations, but we anticipate
that the impact will be minimal. In fiscal year 1993, approximately
61,000 Mexican cattle were imported into the United States for feeding
and return to Mexico for [[Page 13898]] slaughter under U.S. Customs
bond. They included 24,811 cattle imported into Arizona, 3,878 into
California, 69 into New Mexico, and 32,059 into Texas. APHIS estimates
that as many as 18 different feedlots in Arizona, California, New
Mexico, and Texas were used for the feeding of in-bond Mexican cattle
during the height of in-bond activity. Currently, there are about 10
feedlots that have facilities for the feeding of in-bond Mexican
cattle, but only about 5 of those feedlots have been used recently to
feed in-bond Mexican cattle.
The termination of the in-bond program is expected to have a
negligible impact on feedlots in the United States. Most are large
businesses (defined as having more than $1.0 million in annual gross
receipts, according to Small Business Administration size criteria) and
usually use only a small portion of the feedlot for in-bond Mexican
cattle. The majority of the area in the feedlots is generally used to
feed either other imported Mexican cattle or domestic cattle. With the
termination of the in-bond program, we anticipate that any affected
feedlots will use their entire areas to feed other imported Mexican
cattle or domestic cattle.
Under these circumstances, the Administrator of the Animal and
Plant Health Inspection Service has determined that this action will
not have a significant economic impact on a substantial number of small
entities.
Executive Order 12778
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule: (1) Preempts all State and local laws and
regulations that are inconsistent with this rule; (2) has no
retroactive effect; and (3) does not require administrative proceedings
before parties may file suit in court challenging this rule.
Paperwork Reduction Act
This rule contains no information collection or recordkeeping
requirements under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501
et seq.).
List of Subjects
9 CFR Part 91
Animal diseases, Animal welfare, Exports, Livestock, Reporting and
recordkeeping requirements, Transportation.
9 CFR Part 92
Animal diseases, Imports, Livestock, Poultry and poultry products,
Quarantine, Reporting and recordkeeping requirements.
Accordingly, 9 CFR parts 91 and 92 are amended as follows:
PART 91--INSPECTION AND HANDLING OF LIVESTOCK FOR EXPORTATION
1. The authority citation for part 91 is revised to read as
follows:
Authority: 21 U.S.C. 105, 112, 113, 114a, 120, 121, 134b, 134f,
136, 136a, 612, 613, 614, and 618; 46 U.S.C. 466a and 466b; 49
U.S.C. 1509(d); 7 CFR 2.17, 2.51, and 371.2(d).
Sec. 91.3 [Amended]
2. In Sec. 91.3, paragraph (a), the second sentence is amended by
removing the words ``, except cattle from Mexico imported into the
United States in bond for temporary feeding and return to Mexico,''.
Sec. 91.5 [Amended]
3. In Sec. 91.5, the introductory text is amended by removing the
words ``, except cattle from Mexico imported into the United States in
bond for temporary feeding and return to Mexico, except cattle from
Mexico imported into the United States in bond for temporary feeding
and return to Mexico,''.
PART 92--IMPORTATION OF CERTAIN ANIMALS AND POULTRY AND CERTAIN
ANIMAL AND POULTRY PRODUCTS; INSPECTION AND OTHER REQUIREMENTS FOR
CERTAIN MEANS OF CONVEYANCE AND SHIPPING CONTAINERS THEREON
4. The authority citation for part 92 continues to read as follows:
Authority: 7 U.S.C. 1622; 19 U.S.C. 1306; 21 U.S.C. 102-105,
111, 114a, 134a, 134b, 134c, 134d, 134f, 135, 136, and 136a; 31
U.S.C. 9701; 7 CFR 2.17, 2.51, and 371.2(d).
Sec. 92.424 [Amended]
5. In Sec. 92.424, paragraph (b), the second sentence is amended by
removing the words ``pursuant to Sec. 92.427(e)(2), or''.
Sec. 92.426 [Amended]
6. In Sec. 92.426, paragraph (a), the first sentence is amended by
removing the words ``or in bond for temporary entry in accordance with
Sec. 92.427(e) of this part''.
Sec. 92.427 [Amended]
7. In Sec. 92.427, paragraph (c)(2), the first sentence is amended
by removing the words ``or in bond for temporary entry in accordance
with Sec. 92.427(e) of this part''.
8. In Sec. 92.427, paragraph (e), including footnote 10, is
removed.
Secs. 92.430 through 92.435 [Amended]
9. In Secs. 92.430 through 92.434, footnotes 11 through 21 and
their references in the text are redesignated as footnotes 10 through
20, respectively.
Done in Washington, DC, this 9th day of March 1995.
Terry L. Medley,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 95-6371 Filed 3-14-95; 8:45 am]
BILLING CODE 3410-34-P
