96-1506. User FeesCommercial Aircraft and Vessels; Phytosanitary Certificates  

  • [Federal Register Volume 61, Number 19 (Monday, January 29, 1996)]
    [Rules and Regulations]
    [Pages 2660-2665]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-1506]
    
    
    
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    DEPARTMENT OF AGRICULTURE
    Animal and Plant Health Inspection Service
    
    7 CFR Part 354
    
    [Docket No. 94-074-2]
    RIN 0579-AA68
    
    
    User Fees--Commercial Aircraft and Vessels; Phytosanitary 
    Certificates
    
    AGENCY: Animal and Plant Health Inspection Service, USDA.
    
    ACTION: Final rule.
    
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    SUMMARY: We are amending the user fee regulations by lowering the fees 
    charged for certain agricultural quarantine and inspection services we 
    provide in connection with the arrival of an international commercial 
    aircraft at a port in the customs territory of the United States. We 
    are also amending the user fee regulations by raising the fees charged 
    for export certification of plants and plant products. We have 
    determined, based on a review of our user fees, that the fees must be 
    adjusted to reflect the actual cost of providing these services. In 
    addition, we are amending the user fee regulations to clarify the 
    exemption for certain vessels which sail only between the United States 
    and Canada.
    
    EFFECTIVE DATE: March 1, 1996.
    
    FOR FURTHER INFORMATION CONTACT: For information concerning program 
    operations, contact Mr. Don Thompson, Staff Officer, Port Operations, 
    PPQ, APHIS, 4700 River Road, Unit 136, Riverdale, MD 20737-1236, (301) 
    734-8295.
        For information concerning rate development, contact Ms. Donna 
    Ford, PPQ User Fees Section Head, FSSB, BAD, APHIS, 4700 River Road, 
    Unit 54, Riverdale, MD 20737-1232, (301) 734-5901.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        The regulations in 7 CFR 354.3 (referred to below as the 
    ``regulations'') contain provisions for the collection of user fees for 
    certain international services provided by the Animal and Plant Health 
    Inspection Service (APHIS). Among the services covered by these user 
    fees are: (1) Servicing international commercial aircraft and vessels 
    arriving at ports in the customs territory of the United States; and 
    (2) certifying plants and plant products for export.
        On May 24, 1995, we published a document in the Federal Register 
    (60 FR 27437-27441, Docket 94-074-1) proposing various changes to these 
    regulations.
        We solicited comments concerning our proposal for 30 days ending 
    June 23, 1995. We received 45 comments by that date from trade 
    associations connected with the air travel industry, trade associations 
    representing various sectors of the lumber industry, producers in the 
    lumber, flower, and other plant or plant-related industries, members of 
    Congress, and private individuals. The comments are discussed below by 
    topic.
    
    International Commercial Aircraft
    
        We proposed to amend the user fee for agricultural quarantine and 
    inspection (AQI) services provided by APHIS in connection with the 
    arrival of an international commercial aircraft at a port in the 
    customs territory of the United States. (The customs territory of the 
    United States is defined in the regulations as the 50 States, the 
    District of Columbia, and Puerto Rico.) the current user fee for 
    services for international commercial aircraft is $61. We proposed to 
    lower this user fee from $61 to $53 for each arrival. We determined the 
    proposed fee based on a review of user fees collected in FY 1993 and FY 
    1994 and a projection of our cost and revenue for FY 1995. As stated in 
    our proposal, the lower fee is necessary to avoid collecting more 
    revenue than needed to cover the costs of the services we provide.
        Only three comments directly addressed the proposed fee reduction. 
    One commenter expressed no ``specific objection'' to lowering the fee, 
    but ``[took] exception to * * * lowering the fee charged * * * while 
    overlooking the inadequate passenger inspection staffing levels.'' A 
    second commenter stated that ``it is almost impossible to reconcile 
    this proposed reduction with the current levels of service provided by 
    APHIS * * *''. The third commenter expressed displeasure with our 
    collecting user fees both from air passengers and from airlines, and 
    suggested that the passenger fee alone should be adequate to cover all 
    costs.
        We are not making any changes based on these comments. The 
    inspection service provided to airline passengers is different than the 
    inspection service provided for aircraft. We therefore charge separate 
    user fees for these services. Aircraft user fees are paid by the 
    airlines, passenger user fees are paid by the individual passengers, 
    and the amount of each fee is based on the cost of providing each 
    service.
        All government agencies are currently under mandate to reduce staff 
    year ceilings, i.e. the number of employees. We have no plans to reduce 
    the staff year ceilings in the AQI program and we are considering ways 
    to increase such staff year ceilings. However, we would have to review 
    any increases carefully to ensure sufficient staffing in other APHIS 
    and U.S. Department of Agriculture programs.
        One commenter stated that the commercial aircraft inspection fee is 
    ``contrary to and inconsistent with the international obligations of 
    the United States, and thus must be withdrawn.'' The comment suggested 
    that this APHIS user fee violates the Convention on International Civil 
    Aviation (``Chicago Convention'') and certain specified bilateral air 
    transport service agreements and treaties, such as the U.S. Air 
    Transport Agreement with Italy. The comment stated that this issue has 
    been raised in previous rulemakings on APHIS user fees.
        Although we have never previously specifically addressed the U.S. 
    Air Transport Agreement with Italy, we believe our previous discussions 
    of these issues are also pertinent to this agreement. Its language is 
    similar, if not identical, to the many bilateral Air Transport Services 
    Agreements to which the United States is a party, and which we have 
    addressed in previous Federal Register documents. 
    
    [[Page 2661]]
    
        On April 12, 1991, we discussed this subject in a final rule 
    published in the Federal Register (56 FR 14837-14846, Docket No. 91-
    028; see pages 14840 and 14841), and concluded that APHIS complied with 
    the General Agreement on Tariffs and Trade (GATT), the Caribbean Basin 
    Economic Recovery Act, the U.S. Air Transport Agreement with Austria, 
    the U.S.-Jamaican Bilateral Aviation Agreement of 1969, and that the 
    International Civil Aviation Convention (ICAO) does not apply to APHIS.
        Again, on January 9, 1992, in a final rule published in the Federal 
    Register (57 FR 755-773, Docket No. 91-135, see pp. 762-763), we 
    responded to the same or similar concerns. At that time, we addressed: 
    (1) The Chicago Convention; (2) bilateral air transport agreements with 
    Switzerland and the United Kingdom; (3) the United States-Japan Treaty 
    of Friendship, Commerce and Navigation; (4) GATT; and (5) ICAO. We 
    continue to believe that the Chicago Convention and ICOA are 
    inapplicable to APHIS and that the user fees are in compliance with the 
    bilateral air transport agreements as well as the United States-Japan 
    Treaty of Friendship, Commerce and Navigation, and GATT.
    
    International Commercial Vessels
    
        The May 24, 1995 proposal also sought to clarify the exemption from 
    user fees for any vessel which sails only between United States and 
    Canadian ports. To aid the identification of vessels eligible for this 
    exemption, we proposed to require the Masters of such vessels to state 
    in their General Declaration, Customs Form 1301, that the vessel has 
    sailed solely between the United States and Canada for the previous 2 
    years.
        None of the comments specifically addressed the proposal to clarify 
    this exemption. One commenter, however, stated that the exemption is 
    inequitable and should be abolished because it allows these ships to be 
    inspected without payment of any user fees, and the result is that 
    those who pay user fees for other APHIS services subsidize vessel 
    inspections.
        These vessels were originally exempt from paying the user fee 
    because they pose little animal or plant disease or pest risk to United 
    States agriculture, and APHIS does not provide agricultural quarantine 
    inspection services for them (see 56 FR 8150). There has been no change 
    in the animal or plant risk posed by these vessels and we still do not 
    provide inspection services to them. Therefore, we are not making any 
    change in our proposal based on this comment.
    
    Phytosanitary Certificates
    
        The May 24, 1995, proposed rule also proposed to raise user fees 
    for certifying plants and plant products for export. APHIS inspectors 
    and designated State employees issue phytosanitary certificates in 
    accordance with the International Plant Protection Convention and 
    regulations in 7 CFR part 353, certifying that agricultural products 
    being exported from the United States are free from injurious insects 
    and diseases.
        Virtually all of the comments we received addressed these user 
    fees. With one exception, the commenters were opposed to any fee 
    increase. The comments raised the following issues:
    
    1. Economic Impact/Benefit to User
    
        Many commenters stated that the fees are unfair or too high, and 
    raise the cost of doing business because they cannot be passed on. Some 
    commenters were particularly concerned that small businesses will be 
    harmed by the proposed increases in user fees.
        APHIS sympathizes with these commenters and has attempted to 
    minimize the cost of the services, thereby keeping the user fees at the 
    lowest possible level for all users. Also, APHIS previously established 
    a user fee category for low value commercial shipments in an attempt to 
    minimize the impact on small businesses.
        However, when Congress authorized APHIS to prescribe and collect 
    user fees to recover the costs of inspecting plants and plant products 
    for export, it specifically reduced APHIS' appropriation by the 
    estimated amount of providing such services. Currently, APHIS is not 
    appropriated funds to cover the cost of providing these services. 
    Therefore, APHIS must charge user fees which recover the full cost of 
    providing the service. For this reason, APHIS cannot exempt certain 
    classes of users, such as small businesses, from the user fees, and 
    cannot charge user fees which recover less than the full cost of 
    providing the service.
        Another commenter stated that there is no benefit to the user that 
    ``caused'' the fee increase. We believe the commenter's intended 
    meaning was that there is no benefit to the user which justifies the 
    fee increase.
        We disagree. The proposed user fees are designed to recover the 
    cost of providing phytosanitary certificates. These certificates are 
    not required by APHIS or any other agency of the Federal Government. 
    They are required by foreign countries importing the plant or plant 
    products and are provided to the exporters solely for their benefit. 
    The exporters could not import their plant and plant products into most 
    foreign countries without such a certificate.
    
    2. Eliminate Phytosanitary Certificate Requirements
    
        Several commenters suggested that phytosanitary certificates should 
    not or need not be required for certain products. As discussed above, 
    phytosanitary certificates are required by the country importing the 
    plant or plant product; they are not required by APHIS, the U.S. 
    Department of Agriculture, or any other agency or organization within 
    the Federal Government. Therefore, we are unable to eliminate 
    certificate requirements. However, on August 16, 1995, we published a 
    proposal in the Federal Register (60 FR 42472-42479, Docket No. 90-117-
    1, see p. 72474) to allow, under an agreement with the European Union, 
    approved producers in the United States to complete their own 
    certificates for kiln-dried lumber and other plant products. The 
    certificate requirement would not be eliminated, but obtaining a 
    certificate would be much simpler and less time consuming for the 
    recipient. We will continue to work with other countries for 
    improvements such as these.
    
    3. Relationship of User Fee to Time Spent Providing Service
    
        Several comments suggested that we adjust our user fees to take 
    into account how long it takes to provide the service or whether we 
    conduct an on-site inspection.
        After carefully considering this comment we have determined not to 
    make any changes in the proposed regulation. The time spent by APHIS 
    employees is only part of the cost that we must recover through user 
    fees. Supplies, overhead, equipment, telephone, and numerous support 
    costs must be included. A service may be provided faster in one 
    instance than another; however, our proposed user fees reflect the 
    average cost of providing particular services on a nationwide basis. To 
    adjust the fee on the basis of the time it takes to provide the service 
    would increase the cost of the fees by the additional time and expense 
    involved in customizing the fee for each individual inspection and 
    issuance of a phytosanitary certificate. We believe such a system would 
    be expensive to administer and the additional expenses of such a system 
    would, in turn, have to be included in the fee, raising it further. 
    
    [[Page 2662]]
    
    
    4. Competitiveness
    
        Many comments stated that our proposed user fees would make it 
    difficult or impossible for U.S. products to compete in the 
    international marketplace, especially as some foreign countries, 
    including Canada, do not charge for phytosanitary certificates. Some 
    comments also stated that our proposed user fees are anti-competitive 
    because some countries do not require certificates from exporters in 
    certain other countries. Comments also stated that our proposed user 
    fees contradict efforts to increase U.S. exports and will inhibit 
    exports.
        We have carefully considered these comments, but are not making any 
    changes based on them. Although some countries do not currently charge 
    for issuing phytosanitary certificates, user fees for this service are 
    being adopted by more and more countries. In fact, as of May 17, 1995, 
    Canada charges a user fee for all export phytosanitary certificates 
    (see May 17, 1995, Canada Gazette Part II, Vol. 129, No. 10, SOR/DORS/
    95-218). Other countries, including New Zealand, France, Australia, 
    Belgium and The Netherlands, also charge user fees for export 
    phytosanitary certificates. U.S. exporters are therefore not at a 
    competitive disadvantage compared with exporters in other countries.
        To the best of our knowledge, there are no countries which do not 
    require phytosanitary certificates. However, some countries do not 
    enforce their requirements in all cases. Also, some countries have 
    negotiated with individual trading partners and agreed to adjust 
    certain specific requirements, such as, for example, who fills out the 
    form and who conducts the inspection, to make certificates easier or 
    cheaper to obtain. For example, as mentioned elsewhere in this 
    document, we proposed to allow, under an agreement with the European 
    Union, approved producers in the United States to complete their own 
    certificates for kiln-dried lumber and certain other plant products. 
    Because APHIS inspectors would not inspect each export shipment, costs 
    would be reduced for both APHIS and the exporter. In this situation the 
    certificate requirement would not be eliminated, but obtaining a 
    certificate would be simpler and less time consuming.
    
    5. APHIS Costs and Procedures
    
        Several comments suggested that APHIS should keep its costs as low 
    as possible, to keep user fees as low as possible. Other comments, many 
    of which made specific suggestions, stated that APHIS should improve 
    its service. The suggestions included changes in procedures and 
    paperwork.
        We are always trying to reduce our costs and operate as efficiently 
    as possible to maintain APHIS user fees at the lowest possible level. 
    All of the suggestions made by commenters will be carefully considered. 
    If we determine that changes in procedures and paperwork requirements 
    are practical and desirable, we will publish proposed changes for 
    public comment in the Federal Register.
    
    6. Effective Date
    
        One comment suggested that we delay the effective date of any final 
    rule until January 1996. We understand the commenter's desire to make 
    business plans and not have business already settled affected by 
    increases in our user fees. This rule will not take effect until 30 
    days after the date it is published in the Federal Register. This delay 
    should give the commenter and others time to prepare.
    
    7. Calculations
    
        One comment objected that a disproportionate share of APHIS costs 
    is allocated to agricultural exports. The comment appears to say that 
    APHIS is recovering 21 percent of the total cost for our agricultural 
    quarantine and inspection (AQI) program through user fees for 
    phytosanitary certificates. The comment also compares aircraft user 
    fees with phytosanitary certificate fees and states that each aircraft 
    fee covers up to 300 individual passenger inspections.
        Neither of these statements is correct. User fees for phytosanitary 
    certificates recover only that portion of the total costs of the AQI 
    program attributable to phytosanitary certificate issuance. 
    Phytosanitary certificates actually account for less than 5 percent of 
    total AQI program costs. More than 95 percent of total AQI program 
    costs is recovered through other user fees or through appropriated 
    funds. Among the other user fees is a fee for international commercial 
    aircraft. The user fee for international commercial aircraft recovers 
    only the portion of total AQI program costs attributable to 
    international commercial aircraft inspections. It does not cover 
    inspection of aircraft passengers. Passengers on international 
    commercial aircraft pay a separate user fee for inspection services. 
    This user fee recovers only that portion of total AQI program costs 
    attributable to international commercial aircraft passenger 
    inspections. Therefore, we are making no changes based on these 
    comments.
    
    8. State-Issued Phytosanitary Certificates
    
        A couple of comments addressed the fact that phytosanitary 
    certificates are issued by some States, and those State-issued 
    certificates often cost less than federally-issued certificates. The 
    commenters were concerned that APHIS is ``losing business'' to States. 
    The commenters were also concerned that recipients of State-issued 
    certificates are not paying any fee to APHIS, although the certificates 
    themselves are provided by APHIS, which must also maintain files, track 
    certificates, and otherwise manage the program.
        APHIS provides a service to the public and is not ``in business'' 
    as such. Because APHIS seeks to provide efficient and economical 
    service, designated State officials are permitted to issue 
    phytosanitary certificates. Users have the option of obtaining a 
    phytosanitary certificate from a designated State official, which is 
    often more convenient, and saves substantial time and transportation 
    costs.
        The commenters are correct that APHIS provides certificates to 
    States and provides oversight of State programs. Although we have 
    decided not to make any changes in the proposed regulations at this 
    time, we will analyze the issue to determine if further adjustments in 
    the user fees are warranted. If we determine that changes are 
    desirable, we will publish proposed changes for comment in the Federal 
    Register.
    
    9. New Fee
    
        One comment suggested that we establish a new category of user fee 
    for issuing phytosanitary certificates for the reexport of 
    noncommercial shipments. We are not aware of the need for such an 
    additional category of user fee at this time. However, we will keep 
    this suggestion in mind as we continue to review the user fee program. 
    If we determine that there is a demand for this type of certificate, we 
    will publish a proposed fee for public comment in the Federal Register.
    
    10. Miscellaneous
    
        One commenter asked who pays for other services. We have user fees 
    for other services, where appropriate, and the users of those services 
    pay for them. We do not have user fees for domestic programs. User fees 
    apply only to import and export services.
        The same commenter asked why we ``encourage foreign airlines.'' 
    This comment was apparently prompted by our proposal to lower the user 
    fee for international commercial aircraft. This 
    
    [[Page 2663]]
    user fee applies to all commercial aircraft arriving in the customs 
    territory of the United States. Ownership of the aircraft--foreign or 
    domestic--is irrelevant. The user fee is designed to recover the cost 
    of inspection services provided to each aircraft. The fact that we 
    proposed to lower the user fee only reflects the fact that the costs of 
    providing this service were lower than anticipated.
        Another commenter stated that there is a double charge for State 
    certificates which are then endorsed by APHIS. We believe the commenter 
    has misunderstood the system for issuing Federal phytosanitary 
    certificates. Federal phytosanitary certificates are issued only by 
    APHIS officials or, in some States which cooperate with APHIS, by 
    designated State officials. Users pay only one fee for a Federal 
    phytosanitary certificate, although the certificate may be obtained 
    from a State or APHIS official.
        Some States require a State phytosanitary certificate before 
    allowing plants or plant products to be moved into their territory from 
    other parts of the United States. State phytosanitary certificates are 
    generally not valid for exports to another country.\1\ If a shipper 
    obtains, and pays for, a State phytosanitary certificate to ship a 
    commodity interstate, and the shipper then decides to export the plant 
    or plant products instead, then the shipper must obtain a Federal 
    certificate either from the State, if it issues Federal phytosanitary 
    certificates, or from APHIS. If the shipper obtains a certificate from 
    APHIS, the user fee due for APHIS' certification is not a double 
    charge: The Federal phytosanitary certificate is a separate document 
    issued for a different purpose.
    
        \1\ For certain products from certain States, some countries may 
    accept a State phytosanitary certificate.
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        There are two ways to obtain a federally-issued phytosanitary 
    certificate for plants regulated under the Endangered Species Act of 
    1973, as amended (16 U.S.C. 1531 et seq.). The exporter has a choice--
    he or she can either obtain a State phytosanitary certificate and 
    forward it to certain designated APHIS offices, which will issue a 
    Federal phytosanitary certificate to the exporter by mail; or the 
    exporter can bring the plants to the nearest designated APHIS office 
    and APHIS personnel will issue the Federal phytosanitary certificate 
    directly to the exporter. Which method to use is up to the exporter. If 
    the exporter chooses to obtain a State phytosanitary certificate and 
    forward it to APHIS, there will be two fees--one for the State 
    phytosanitary certificate and one for the Federal phytosanitary 
    certificate. However, the exporter would save the cost of transporting 
    the plants to the designated APHIS office.
        One commenter stated that he could not figure out in advance what 
    the user fee would be for a phytosanitary certificate and did not 
    understand how to obtain a refund of overpayments. This situation only 
    results when a prospective exporter buys a block of phytosanitary 
    certificates from APHIS, paying a fixed amount per certificate. Because 
    the user fee varies for different types of certificates, the actual 
    user fee due for a particular phytosanitary certificate is not known 
    until the certificate is complete. For example, the user fee due for a 
    low value commercial shipment may be less than the user fee already 
    paid for the certificate. Under these circumstances, the user is 
    entitled to a refund from APHIS. We have an established refund system. 
    The user should contact the APHIS office where the block of 
    certificates was purchased to arrange for a refund.
        One commenter also stated that APHIS no longer issues phytosanitary 
    certificates for as many different plant and plant products as the 
    agency once did. This is correct. Because importing countries have 
    stopped requiring phytosanitary certificates for some plants and plant 
    products, APHIS has stopped issuing phytosanitary certificates for 
    these plants and plant products.
    
    11. Regulatory Impact Analysis
    
        One comment stated that we have not conducted an economic analysis 
    of the proposed phytosanitary certificate fees. This is incorrect. Our 
    analysis was included in the proposed regulations at 60 FR 27439-27440. 
    An updated analysis, using the most current data available at the time 
    this was written, is a part of this document.
        One comment stated that if we raise the user fees for phytosanitary 
    certificates, the number of certificates APHIS issues will decline. The 
    commenter may be correct. However, we do not have data to show how much 
    of a decline might occur. Regardless, we are required to recover the 
    cost of providing the service. Therefore, it is necessary to increase 
    our fees for issuing phytosanitary certificates.
        Another comment questioned our statement that $3 billion in exports 
    was certified during 1993, and suggested it should be much higher. We 
    have rechecked all of our figures and find that the commenter is 
    correct. In fact, approximately $39 billion in agricultural exports was 
    certified in 1993. Our original figure included only fruits and 
    vegetables; major exports such as lumber and wood products and grain 
    and cereals were not included. We have revised our Regulatory 
    Flexibility Act analysis to reflect the correct figure.
        Four comments disagreed with our conclusion that the proposed fees 
    would not have a significant economic impact on a substantial number of 
    small entities. One stated that we should compare the total user fees 
    paid by the affected industry with the profit generated by that 
    industry, rather than comparing user fee costs with overall value of 
    exports. Another stated that our analysis was valid only as to large 
    wholesale agriculture shipments.
        We have carefully reviewed our analysis. Based on the data 
    available to us, we continue to believe the proposed fees will not have 
    a significant economic impact on a substantial number of small 
    entities. We would have compared the amount of proposed user fees with 
    business profits if this were possible. However, information on profits 
    from sales is proprietary for many small entities and not part of the 
    public record. In order to minimize any potential impact from increased 
    user fees, small exporters could work through brokers to combine 
    shipments.
        Therefore, based on the rationale set forth in the proposed rule 
    and in this document, we are adopting the provisions of the proposal as 
    a final rule, without change.
    
    Executive Order 12866 and Regulatory Flexibility Act
    
        This rule has been reviewed under Executive Order 12866. The rule 
    has been determined to be significant for the purposes of Executive 
    Order 12866 and, therefore, has been reviewed by the Office of 
    Management and Budget.
        This rule will increase the user fees for phytosanitary 
    certificates to recover the cost to APHIS of providing export 
    certification services for plants and plant products. This rule will 
    also reduce the user fee for international commercial aircraft to 
    correspond with the cost to APHIS of providing services. Amendments to 
    user fees are necessary to adjust for changes in service volume and 
    service costs.
        Federal phytosanitary certificates must be issued by APHIS or, as 
    explained earlier, by designated State employees in States that 
    cooperate with APHIS, to be accepted in international commerce. Federal 
    phytosanitary certificates must accompany the majority of agricultural 
    commodities (except livestock products) traded. Traded commodities 
    generally include 
    
    [[Page 2664]]
    cereals and grains (such as soybeans, wheat, and corn), fruits and 
    vegetables, other nursery and horticultural products, and lumber and 
    wood products. In 1993, the value of exported agricultural products 
    requiring phytosanitary certificates was estimated at $39 billion.
        Current user fees for phytosanitary certificates do not fully 
    recover APHIS' costs for services performed. In fiscal year 1994, the 
    total cost of providing phytosanitary certificate services was 
    $4,314,000, while total fee collections amounted only to $3,015,000 
    when the fees were $30 for commercial certificates and $19 for 
    noncommercial certificates. The reason for the discrepancy is that we 
    overestimated the number of certificates and underestimated the time to 
    issue a certificate, thereby underestimating the cost of issuing each 
    certificate. The total program cost for the 1995 fiscal year, which we 
    should have recovered through user fees, was estimated at $4,707,000. 
    This amount includes costs associated with the direct charges for 
    program delivery and associated allocations for program direction and 
    support, agency support, departmental charges, and Office of the 
    General Counsel services. If the proposed fee increases are adopted, 
    estimated collections would rise to $4,717,947 annually.
        Exporters of agricultural commodities will be affected by this 
    rule. The Regulatory Flexibility Act requires APHIS to address the 
    economic impact of imposing user fees on ``small'' entities. The Small 
    Business Administration (SBA) criteria for a small wholesale business 
    engaged in the trading of fresh fruits and vegetables is that the 
    business have 100 or fewer employees. SBA criteria for a small crop 
    production business is that it have annual revenues up to $500,000.
        Approximately 98,387 federally-issued phytosanitary certificates 
    were issued in 1994. Certificates for commercial shipments are issued 
    to wholesale businesses engaged in the trading of cereals and grains, 
    fresh fruits and vegetables, other nursery and horticultural products, 
    and lumber and wood products. Certificates are also issued to export 
    brokers who handle shipments of produce from various sources. The 
    proportion of exporters in this group which may qualify as small is 
    unknown. It is likely that a large number of these brokers employ fewer 
    than 100 workers.
        The value of an average commercial shipment greatly exceeds the 
    increase in the $30 user fee up to the $50 user fee. The total value of 
    agricultural products requiring phytosanitary certificates exported in 
    1993, estimated at $39 billion, is sufficiently large to incorporate 
    the 0.012 percent ($4.7 million) in total user fee collection; 
    consequently, the impact on U.S. producers and exporters is expected to 
    be very small.
        Phytosanitary certificates for noncommercial exporters are 
    generally issued to individuals and to exporters of low value 
    commodities. The user fee for this category of phytosanitary 
    certificate will increase from $19 to $23, an increase of 21 percent. 
    Although user fees represent a proportionately larger share of the 
    total value of noncommercial and low value exports, these small exports 
    may possess a much higher value in the foreign country than in the 
    United States. Moreover, exports by individuals may be gift items with 
    nonmonetary values offsetting some of the effect of the fee increase.
        SBA criteria for a small airline is that it have 1,500 or fewer 
    employees. Data from the 1988 Census indicates that there were 67 
    domestic and international airline operators employing a total of 
    481,000 employees. Although the size distribution of air carriers that 
    enter the customs territory of the United States is unknown, the effect 
    of the proposed user fee change, regardless of carrier size, is 
    positive--we are proposing a 13 percent user fee reduction, from $61 to 
    $53 per aircraft. The lower fee is sufficient to recover the full cost 
    of providing aircraft inspection services, without collecting more 
    revenue than needed to recover costs. The estimated cost to provide 
    inspection services for international commercial aircraft in FY 1995 is 
    $18 million. At the proposed user fee of $53 per aircraft and a 
    projected FY 1995 commercial aircraft volume of 346,204, total 
    collections would amount to $18.3 million.
        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 12372
    
        This program/activity is listed in the Catalog of Federal Domestic 
    Assistance under No. 10.025 and is subject to Executive Order 12372, 
    which requires intergovernmental consultation with State and local 
    officials. (See 7 CFR part 3015, subpart V.)
    
    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
    
        In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
    3501 et seq.), the information collection or recordkeeping requirements 
    included in this rule have been approved by the Office of Management 
    and Budget (OMB), and there are no new requirements. The assigned OMB 
    control number is 1515-0062.
    
    List of Subjects in 7 CFR Part 354
    
        Exports, Government employees, Imports, Plant diseases and pests, 
    Quarantine, Reporting and recordkeeping requirements, Travel and 
    transportation expenses.
    
        Accordingly, 7 CFR part 354 is amended as follows:
    
    PART 354--OVERTIME SERVICES RELATING TO IMPORTS AND EXPORTS; AND 
    USER FEES
    
        1. The authority citation for part 354 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 2260; 21 U.S.C. 136 and 136a; 49 U.S.C. 
    1741; 7 CFR 2.17, 2.51, and 371.2(c).
    
    
    Sec. 354.3   [Amended]
    
        2. Section 354.3 is amended as follows:
        a. By revising paragraph (b)(2)(vi) to read as set forth below.
        b. In paragraph (e)(1), the last sentence, by removing ``$61.00'' 
    and adding ``$53'' in its place.
        c. In paragraph (g)(5)(i)(A), by removing ``$30'' and adding 
    ``$50'' in its place.
        d. In paragraph (g)(5)(i)(B), by removing ``$19'' and adding 
    ``$23'' in its place.
        e. In paragraph (g)(5)(ii), by removing ``$19'' and adding ``$23'' 
    in its place.
        f. In paragraph (g)(5)(iii)(A), by removing ``$30'' and adding 
    ``$50'' in its place.
        g. In paragraph (g)(5)(iii)(B), by removing ``$19'' and adding 
    ``$23'' in its place.
        h. In paragraph (g)(5)(iv), by removing ``$30'' and adding ``$50'' 
    in its place.
        i. In paragraph (g)(5)(v), by removing ``$6'' and adding ``$7'' in 
    its place.
        j. In paragraph (h)(2), by removing ``$6'' and adding ``$7'' in its 
    place.
        k. By adding at the end of the section the following: ``(Approved 
    by the Office of Management and Budget under control numbers 1515-0062, 
    0579-0094, or 0579-0052)''.
    
    [[Page 2665]]
    
    
    
    Sec. 354.3   User fees for certain international services.
    
    * * * * *
        (b) * * *
        (2) * * *
        (vi) Any vessel which sails only between United States and Canadian 
    ports, when the Master of such vessel arriving from Canada certifies, 
    in the ``Remarks'' block of the General Declaration, Customs Form 1301, 
    that the vessel has sailed solely between the United States and Canada 
    for the previous 2 years.
    * * * * *
    (Approved by the Office of Management and Budget under control 
    numbers 1515-0062, 0579-0094, or 0579-0052)
    
        Done in Washington, DC, this 24th day of January 1996.
    Lonnie J. King,
    Administrator, Animal and Plant Health Inspection Service.
    [FR Doc. 96-1506 Filed 1-26-96; 8:45 am]
    BILLING CODE 3410-34-P
    
    

Document Information

Effective Date:
3/1/1996
Published:
01/29/1996
Department:
Animal and Plant Health Inspection Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-1506
Dates:
March 1, 1996.
Pages:
2660-2665 (6 pages)
Docket Numbers:
Docket No. 94-074-2
RINs:
0579-AA68: User Fees--Commercial Aircraft and Vessels; Phytosanitary Certificates
RIN Links:
https://www.federalregister.gov/regulations/0579-AA68/user-fees-commercial-aircraft-and-vessels-phytosanitary-certificates
PDF File:
96-1506.pdf
CFR: (1)
7 CFR 354.3