[Federal Register Volume 62, Number 229 (Friday, November 28, 1997)]
[Proposed Rules]
[Pages 63284-63286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31177]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Food Safety and Inspection Service
9 CFR Part 381
[Docket No. 97-006P]
RIN 0583-AC33
Addition of Mexico to the List of Countries Eligible to Export
Poultry Products Into the United States
AGENCY: Food Safety and Inspection Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Food Safety and Inspection Service (FSIS) is proposing to
add Mexico to the list of countries eligible to export poultry products
into the United States. Reviews of Mexico's laws, regulations, and
other materials show that its poultry processing system meets
requirements equivalent to all provisions in the Poultry Products
Inspection Act (PPIA) and its implementing regulations.
Only poultry products that have been slaughtered in federally
inspected establishments in the United States or in establishments in
other countries eligible to export poultry to the United States and
have then been processed in certified Mexican establishments would be
permitted to be imported into the United States. All poultry products
exported from Mexico to the United States must be reinspected at the
U.S. ports-of-entry by FSIS inspectors.
This action would enable certified poultry processing
establishments in Mexico to export processed poultry products into the
United States.
DATES: Comments must be received on or before January 27, 1998.
ADDRESSES: Send an original and two copies of comments to: FSIS Docket
Clerk, Docket #97-006P, Room 102, Cotton Annex, 300 C Street, SW,
Washington, DC 20250-3700. Reference materials cited in this document
and any comments received will be available for public inspection in
the FSIS Docket Room from 8:30 a.m. to 1:00 p.m. and from 2:00 p.m. to
4:30 p.m., Monday through Friday.
FOR FURTHER INFORMATION CONTACT: Mr. Mark Manis, Director,
International Policy Development Division, Office of Policy, Program
Development and Evaluation; (202) 720-6400.
SUPPLEMENTARY INFORMATION:
Background
FSIS is proposing to amend the poultry products inspection
regulations to add Mexico to the list of countries eligible to export
poultry products to the United States. Section 17 of the PPIA (21
U.S.C. 466) prohibits the importation into the United States of
slaughtered poultry or poultry products unless they are healthful,
wholesome, fit for human food, not adulterated, and contain no dye,
chemical, preservative, or ingredient which renders them unhealthful,
unwholesome, adulterated, or unfit for human food. Imported poultry
products must be in compliance with the poultry products inspection
regulations to ensure that they meet the standards provided in the
PPIA. 9 CFR 381.196 establishes the procedures by which foreign
countries wanting to export poultry or poultry products to the United
States may become eligible to do so.
Section 381.196(a) requires authorities in a foreign country's
poultry inspection system to certify that (1) the system provides
standards equivalent to those of the United States and (2) the legal
authority for the system and its implementing regulations are
equivalent to those of the United States. Specifically, a country's
regulations must impose requirements equivalent to those of the United
States in the following areas: (1) Ante-mortem and post-mortem
inspection; (2) official controls by the national government over plant
construction, facilities, and equipment; (3) direct and continuous
supervision of slaughter activities and product preparation by official
inspection personnel; (4) separation of establishments certified to
export from those not certified; (5) maintenance of a single standard
of inspection and sanitation throughout certified establishments; and
(6) official controls over condemned product.
Section 381.196 also requires a poultry inspection system
maintained by a foreign country, with respect to establishments
preparing products in that country for export to the United States, to
ensure that those establishments and their poultry products comply with
requirements equivalent to the provisions of the PPIA and the poultry
products inspection regulations. Foreign country authorities must be
able to ensure that all certifications required under Subpart T of the
poultry product inspection regulations (Imported Poultry Products) can
be relied upon before approval to export poultry and poultry products
to the United States may be granted. Here, the government of Mexico
would be responsible for establishing a system of controls to ensure
that only poultry from eligible countries and establishments is used in
poultry products processed in Mexico and destined for the United
States. Besides relying on its initial determination of a country's
eligibility, coupled with ongoing reviews to ensure that products
shipped to the United States are safe, wholesome and properly labeled
and packaged, FSIS randomly samples imported meat and poultry products
for reinspection as they enter the United States.
In addition to meeting the certification requirements, a foreign
country's inspection system must be evaluated by FSIS before
eligibility to export poultry and poultry products can be granted. This
evaluation consists of two processes: a document review and an on-site
review. The document review is an evaluation of the laws, regulations,
and other written materials used by the country to operate its
inspection program. To help the country in organizing its material,
FSIS gives the country questionnaires asking for detailed information
about the country's inspection practices and procedures in
[[Page 63285]]
five risk areas. These five risk areas, which are the focus of the
evaluation, are contamination, disease, processing, residues, and
compliance/economic fraud. FSIS evaluates the information to verify
that the critical points in the five risk areas are addressed
satisfactorily with respect to standards, activities, resources, and
enforcement. If the document review is satisfactory, on-site reviews
are scheduled using a multi-disciplinary team to evaluate all aspects
of the country's delivery of its inspection program, including
laboratories and individual establishments within the country.
Evaluation of the Mexican Inspection System
In 1988, following an in-depth evaluation of its meat inspection
system, Mexico was granted eligibility to export fresh and further
processed meat products subject to the Federal Meat Inspection Act to
the United States. The government agency in Mexico responsible for
inspecting meat for export to the United States also has authority over
poultry inspection. Thus, the authorities operating the Mexican
inspection system have for several years demonstrated their knowledge
of the U.S. inspection system, and successfully provided inspection
equivalence for fresh and processed meat.
In response to a request from the Mexican government for approval
to export poultry to the United States, FSIS conducted a review of the
Mexican poultry inspection system to determine if it was equivalent to
the U.S. poultry inspection system. First, FSIS compared Mexico's
poultry inspection laws and regulations with U.S. requirements. The
study concluded that the requirements contained in Mexico's poultry
inspection laws and regulations are equivalent to those mandated by the
PPIA and implementing regulations. FSIS then conducted an on-site
review of the Mexican poultry inspection system in operation. This
review was conducted between May 28 and June 5, 1996. The FSIS review
team concluded that Mexico's implementation of poultry processing
standards and procedures was equivalent to that of the United States
and that Mexico's official residue control laboratory was fully capable
of testing poultry products. The parties have agreed to postpone final
decision making regarding Mexico's implementation of slaughter
processing standards and procedures until a later date. As a result,
poultry processed in Mexican establishments approved to export to the
United States must be slaughtered in the United States under USDA
inspection or in establishments in other countries that are certified
as eligible to export to the United States. The Mexican government has
agreed to conduct its program in a way that ensures that only poultry
from eligible countries and establishments is used in poultry products
processed in Mexico destined for the United States.
All lots of poultry products exported to the United States from
Mexico will be reinspected at the ports-of-entry for transportation
damage, labeling, proper certification, general condition and accurate
count. Other types of inspection will also be conducted, including
examining the product for defects and performing laboratory analyses
that will detect chemical residues on the product or determine whether
the product is microbiologically contaminated.
Products that pass reinspection will be stamped with the official
mark of inspection and allowed to enter U.S. commerce. If they do not
meet U.S. requirements, they will be stamped ``U.S. Refused Entry'' and
must be reexported, destroyed or converted to animal food.
Accordingly, FSIS is proposing to amend Sec. 381.196 of the poultry
products inspection regulations to add Mexico as a country from which
poultry products may be eligible for import into the United States. As
a country eligible to export poultry products into the United States,
the government of Mexico would certify to FSIS those establishments
wishing to export such products to the United States and operating
according to U.S. requirements. FSIS would retain the right to verify
that establishments certified by the Mexican government are meeting the
U.S. requirements. This would be done through on-site reviews of the
establishments while they are in operation.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. If this proposed rule is adopted: (1) all state
and local laws and regulations that are inconsistent with this rule
will be preempted; (2) no retroactive effect will be given to this
rule; and (3) administrative proceedings will not be required before
parties may file suit in court challenging this rule.
Executive Order 12866 and Regulatory Flexibility Act
This proposed rule has been determined to be significant and has
been reviewed by OMB under Executive Order 12866.
In accordance with 5 U.S.C. 603, FSIS has also conducted an initial
regulatory flexibility analysis regarding the impact of the rule on
small entities. However, FSIS does not currently have all the data
necessary for a comprehensive analysis of the effects of this rule on
small entities. Therefore, FSIS is inviting comments concerning
potential effects. In particular, FSIS is interested in determining the
number and type of small entities that may incur benefits or costs from
implementation of this proposed rule.
This proposed rule would add Mexico to the list of countries
eligible to export poultry products into the United States. However,
through use of required certificates, poultry imports from Mexico would
be limited to only products derived from carcasses slaughtered under
federal inspection in the United States or slaughtered under the
inspection systems of other countries that are now eligible to export
poultry to the United States. Currently, only Canada, Great Britain,
France, Israel and Hong Kong are on the list of countries eligible to
export poultry products into the United States. Any exports from Hong
Kong are restricted to products slaughtered under federal inspection in
the United States or slaughtered in the inspection systems of Canada,
Great Britain, France or Israel.
With implementation of the proposed rule, FSIS expects to see some
domestic poultry establishments shipping whole carcasses or parts of
carcasses to certified Mexican establishments. These carcasses or parts
of carcasses would then be cut-up, deboned or further processed in
these Mexican establishments. Some processed poultry products,
particularly higher valued products such as boneless breast meat, would
then be shipped to markets in the United States. Products shipped to
the United States could also include poultry sausage and other cooked
products.
As this process unfolds, total pounds of poultry exports would go
up. Because some further processed products would be shipped back to
the United States, imports of poultry products would also increase. A
corresponding decrease in domestic jobs associated with cutting and
deboning operations would occur.
With implementation, poultry firms could lower overall processing
costs by having labor-intensive cut-up and deboning operations
performed in certified Mexican establishments where wages can be
expected to be lower. However, FSIS believes the potential for any
significant changes in overall production costs would be limited.
First, cut-up and boning operations are currently conducted by
relatively lower wage employees. The value added by these operations is
relatively small. In 1996, wholesale prices of whole broilers
[[Page 63286]]
averaged $.61 per pound, whereas wholesale prices of cut-up broilers
averaged $.66 per pound. Second, the potential for lowering production
costs using lower wage employees would be offset by export fees, import
fees and increased shipping/transportation costs.
Considering these factors, FSIS does not anticipate any measurable
change in market prices for processed poultry products. Because of
shipping and transportation costs, FSIS expects most of the change to
be limited to firms located relatively close to the Mexican border. For
the same reasons, FSIS does not expect to see increases in poultry
imports from Mexico processed from birds slaughtered in other countries
such as Canada and Great Britain. Currently, Mexico imports very little
poultry from other countries. In 1996, Mexico imported approximately
396 million pounds of poultry and poultry products. More than 97
percent was imported from the United States.
FSIS does not believe this rule would offset enough product to
affect domestic poultry prices. In 1996, U.S. poultry production was
approximately 32.3 billion pounds on a ready-to-cook carcass weight
basis. The United States exported approximately 386 million pounds to
Mexico. With this rule, exports would likely increase more than imports
on a pound basis. However, considering that imports would consist of
value-added products, it is possible that the dollar value of imports
will increase more than the value of exports.
As noted above, FSIS is requesting comments on the potential effect
of this proposal on small entities. While most poultry is cut-up and
boned in large firms, there are many small businesses involved in cut-
up, boning and further poultry processing operations. Although changes
in prices would affect these small businesses, FSIS does not expect
measurable price changes for the reasons already discussed.
Paperwork Requirements
No new paperwork requirements are associated with this proposed
rule. Foreign countries wanting to export poultry or poultry products
to the United States are required to provide information to FSIS
certifying that its inspection system provides standards equivalent to
those of the United States and that the legal authority for the system
and its implementing regulations are equivalent to those of the United
States's before they may start exporting such product to the United
States. FSIS collects this information one time only. FSIS gave Mexico
questionnaires asking for detailed information about the country's
inspection practices and procedures to assist the country in organizing
its materials. This information collection was approved under OMB
number 0583-0094. The proposed rule contains no other paperwork
requirements.
List of Subjects 9 CFR Part 381
Imports, Poultry and poultry products.
For the reasons set out in the preamble, 9 CFR part 381 would be
amended as follows:
PART 381--POULTRY PRODUCTS INSPECTION REGULATIONS
1. The authority citation for part 381 would continue to read as
follows:
Authority: 7 U.S.C. 138f; 7 U.S.C. 450; 21 U.S.C. 451-470; 7 CFR
2.18, 2.53.
Sec. 381.196 [Amended]
2. Section 381.196 would be amended by adding ``Mexico'' in
alphabetical order to the list of countries in paragraph (b).
Done at Washington, DC, on: November 18, 1997.
Thomas J. Billy,
Administrator.
[FR Doc. 97-31177 Filed 11-24-97; 10:10 am]
BILLING CODE 3410-DM-P
