[Federal Register Volume 62, Number 199 (Wednesday, October 15, 1997)]
[Proposed Rules]
[Pages 53580-53581]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26928]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 62, No. 199 / Wednesday, October 15, 1997 /
Proposed Rules
[[Page 53580]]
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DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 6
Dairy Tariff-Rate Import Quota Licensing
AGENCY: Foreign Agricultural Service, USDA.
ACTION: Advanced notice of proposed rulemaking on Dairy Tariff-Rate
Import Quota Licensing.
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SUMMARY: This document requests public comments on possible options for
the implementation of the Dairy Tariff-Rate Import Quota Licensing
regulation's requirement to permanently reduce certain historical
licenses based on surrenders, including possible recision, suspension,
or delay of this requirement.
DATES: Comments should be submitted on or before 5 p.m. on November 28,
1997 to be assured of consideration.
ADDRESSES: Interested parties may mail their comments to: Diana
Wanamaker, Group Leader, Import Policies and Programs Division, Foreign
Agricultural Service, 1400 Independence Avenue, SW., Stop 1021,
Washington, DC 20250-1021. They may also fax their comments to 202-720-
0876. All comments received will be available for public inspection in
room 5541-S at the above address. Summaries of comments will be made
available via our fax retrieval system by calling (202) 720-0876 after
December 5, 1997.
FOR FURTHER INFORMATION CONTACT: Diana Wanamaker, Group Leader, Import
Policies and Programs Division, Foreign Agricultural Service, 1400
Independence Avenue, SW, Stop 1021, Washington, DC 20250-1021 or
telephone (202) 720-2916.
SUPPLEMENTARY INFORMATION: The Foreign Agricultural Service (FAS) under
the authority of 7 CFR 2.43 is requesting comments concerning possible
implementation of Sec. 6.25(b) of the Department's Dairy Tariff-Rate
Import Quota Licensing Regulation (``the Regulation''). Section
6.26(b)(2) provides that prior to 1999, a determination may be made, in
light of market conditions, to eliminate the requirement in
Secs. 6.25(b)(1)(i) and 6.25(b)(1)(ii) to permanently reduce the
quantity of a historical license based on consecutive years of license
surrender. Specifically, Sec. 6.25(b)(1)(i) states that beginning in
1999, if a licensee has surrendered to the Department more than 50
percent of a historical license in each of three prior years, that
license will be permanently reduced to the average amount entered
during those three years (the ``three-year rule''). Section
6.25(b)(1)(ii) provides that beginning in 2001, if a licensee
surrenders to the Department more than 50 percent of a historical
license in three of the five prior years, that license will be
permanently reduced by the average amount entered during those five
years (the ``five-year'' rule).
Section 6.25(b)(2) is under review by the Department and we are
seeking comments, views, and recommendations with respect to methods
and timing of the implementation of this section. At this time, all
options are under consideration, including but not limited to the
following:
A. Issue an immediate determination that Secs. 6.25(b)(1)(i) and
6.25(b)(1)(ii) shall not apply in light of market conditions,
effectively rescinding the provision;
B. Revise the regulation to advance the effective date of
Sec. 6.25(b)(1)(i) from 1999 to 2003, the effective date of
Sec. 6.26(b)(ii) from 2001 to 2005, and the determination date from
prior to 1999 to prior to 2003; and
C., D. Revise the regulation to eliminate either the three-year
rule (section 6.25(b)(1)(i)) or the five-year rule (section
6.26(b)(1)(ii)) to provide that one but not both of these provisions
remain in effect with existing or modified requirements.
FAS also invites comments as to whether current dairy import market
conditions are such that FAS should implement Sec. 6.25(b)(2)
immediately.
Background
Rationale for Section 6.26(b)(2)
Revision 8 of the Regulation, issued on October 6, 1996, amended
the previous rule so that a historical license that is being
consistently underutilized will be permanently reduced. Under the
previous rule, there was no consequence for surrendering license
amounts. In light of the small amount of license available to new
entrants or others who wish to increase imports of a certain dairy
product, the Department determined that it was sound public policy to
reallocate licenses amounts that are consistently not being used.
Therefore, the amount by which a historical license is permanently
reduced is to be converted to a nonhistorical license.
How Section 6.25(b) May Be Implemented
Section 6.25(b)(2) of the Regulation permits the Secretary of
Agriculture to determine that Sec. 6.25(b)(1) ``does not apply in light
of market conditions.'' Authority for administration of tariff-rate
quotas (TRQs) for dairy products was delegated to the FAS Administrator
under 7 CFR 2.43.
Requests for Public Comments on Section 6.25(b)
FAS requests comments on any of the following options and any other
views, comments or recommendation for action that commentors wish to
submit on this matter.
A. Using Section 6.25(b)(2) To Permanently Cancel Section 6.25(b)(1)
Under this option, FAS would use its determination authority to
find that market conditions in 1997 are such that FAS would invoke
Sec. 6.25(b)(2) to permanently void Sec. 6.25(b)(1). If FAS implemented
this option, licensees would not be subsequently penalized for having
surrendered more than 50 percent of their historical licensed amounts
in 1996 or 1997 or in future years. However, the problems concerning
repeated license surrenders and limited access to licenses to import
inquota TRQ amounts would remain.
B. Postponing Implementation of Section 6.25(b)(1)
Under this option, FAS would amend the Sec. 6.25(b)(1)(i) to delay
its implementation from 1999 to a future date. This delay would give
licensees time to adjust to changing market conditions which have
resulted from the implementation of the Uruguay Round Trade Agreement
with respect to market access and export subsidies. FAS invites
comments on the concept of delaying implementation of
Secs. 6.25(b)(1)(i) and
[[Page 53581]]
6.25(b)(1)(ii)96, and welcomes proposals as to future implementation
dates.
C. Eliminate the Three-Year Rule, While Retaining the Five-Year Rule
Under this option, FAS would amend the Regulation to delete
Sec. 6.25(b)(1)(i). This action would eliminate the three-year rule,
while retaining the five-year rule, which appears in
Sec. 6.25(b)(1)(ii). Per the five-year rule, a licensee could surrender
more than 50 percent of its historical licensed amount for two of five
consecutive years without penalty. The five-year rule may be viewed as
giving licensees two years in which to adjust to changed market
conditions.
D. Eliminate the Five-Year Rule, While Retaining the Three-Year Rule
Under this option, FAS could amend the Regulation to delete
Sec. 6.25(b)(1)(ii). This action would eliminate the five-year rule,
while retaining the three-year rule, which appears in
Sec. 6.25(b)(1)(i). Per the three-year rule, a licensee could surrender
more than 50 percent of a historical license amount for two years
without penalty and not be subjected to license reduction if more than
50 percent of that license were surrendered in the next two years. This
also may be viewed as giving licensees time to adjust to changed market
conditions.
Signed at Washington, DC, on October 3, 1997.
Christopher E. Goldthwait,
Acting Administrator.
[FR Doc. 97-26928 Filed 10-14-97; 8:45 am]
BILLING CODE 3410-10-M
