[Federal Register Volume 59, Number 37 (Thursday, February 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4121]
[[Page Unknown]]
[Federal Register: February 24, 1994]
VOL. 59, NO. 37
Thursday, February 24, 1994
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 51
[Docket Number FV-93-302]
RIN 0581-ABO3
Fresh Fruits, Vegetables and Other Products (Inspection,
Certification, and Standards)
AGENCY: Agricultural\1\ Marketing Service, USDA.
\1\Among such other products are the following: Raw nuts;
Christmas trees and evergreens; flowers and flower bulbs; and onion
sets.
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ACTION: Proposed rule.
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SUMMARY: This proposed rule would revise the regulations governing
inspection and certification for fresh fruits, vegetables and other
products by revising the fees charged for the inspection of these
products at destination markets and by clarifying other charge-related
regulations. The proposed fee increases are needed to offset the costs
of developing and maintaining U.S. grade standards for fresh fruits and
vegetables and to recover the costs of providing Federal fruit and
vegetable inspection service at destination markets. Regulations
regarding fees for inspection of small lots (fifty packages or less)
would be added to provide a fee commensurate with the level of effort
typically required to conduct such inspections. Finally, regulations
regarding charges for waiting time would be added and conditions
governing the applicability of dock-side inspection fees would be
clarified.
DATES: Comments must be postmarked or courier dated on or before March
28, 1994.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments must be sent in duplicate to the
Office of the Branch Chief, Fresh Products Branch, Fruit and Vegetable
Division, Agricultural Marketing Service, U.S. Department of
Agriculture, P.O. Box 96456, room 2056 South Building, Washington, D.C.
20090-6456. Comments should make reference to the date and page number
of this issue of the Federal Register and will be made available for
public inspection in the above office during regular business hours.
FOR FURTHER INFORMATION CONTACT: Mr. Douglas Bailey, 202-720-5870.
SUPPLEMENTARY INFORMATION:
The Department is issuing this rule in conformance with Executive
Order 12866.
This proposed rule has been reviewed under Executive Order 12778,
Civil Justice Reform. It is not intended to have a retroactive effect.
This rule would not preempt any state or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule. There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of this rule.
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (5 U.S.C. 601 et. seq.), the Administrator of the
Agricultural Marketing Service (AMS) has determined that this action
would not have a significant economic impact on a substantial number of
small entities. This proposed rule for the revision of the Regulations
governing inspection, certification and standards for fresh fruits,
vegetables and other products will not impose substantial direct
economic cost, recordkeeping, or personnel workload changes on small
entities, and will not alter the market share or competitive position
of these entities relative to large businesses.
The regulations were last revised in November 1992. The proposed
rule reflects fees needed to offset the cost of developing and
maintaining U.S. grade standards for fresh fruits and vegetables
previously funded through an appropriation and to recover the costs of
Federal fruit and vegetable inspection service at destination markets
rendered in accordance with the AMA of 1946.
In the Agriculture Appropriations Bill for fiscal year 1994,
Congress directed AMS to establish a user fee program, pursuant to 31
U.S.C. 9701, to recover the cost of developing, reviewing, and
maintaining agricultural commodity standards that describe product
quality attributes. This proposal would amend the schedule for fees and
charges for services rendered to users at destination markets to
recover the portion of the cost for fresh fruit and vegetable
standardization that is applicable to these users.
The AMA authorizes voluntary official inspection, grading, and
certification on a user-fee basis, of fresh fruits, vegetables, and
other products such as raw nuts, Christmas trees, and flowers. The AMA
provides that reasonable fees be collected from the user of the program
services to cover as nearly as practicable the costs of services
rendered. The program seeks to maintain an unobligated balance that is
at least equal to 4 months of operating expense. The unobligated
balance for the Federal inspection service at destination markets at
the end of fiscal year 1993 was 1.1 months of operating expense.
Approximately $240,000 in increases are expected in the cost the
service pays for General Services Administration office rent and
Federal Telecommunications Service, and a $120,000 increase is expected
for the cost of implementing a locality-based pay system in January
1994. The service plans to implement cost-cutting actions during fiscal
year 1994 that are expected to save approximately $350,000 each fiscal
year beginning in fiscal year 1995. These cost-cutting actions will
offset some of the expected increases in service costs; however,
further action is necessary to meet all rising costs and for the
program's unobligated balance to grow to the 4 month level necessary to
provide contingency funding.
AMS regularly reviews this program to determine if fees are
adequate. The last fee change was effective on November 12, 1992 (57 FR
48929). With the planned cost-cutting actions, but without a fee
increase, the unobligated balance of this program is expected to
decrease to seven-tenths of a month by the end of fiscal year 1994 and
to two-tenths of a month by the end of fiscal year 1995.
Based on the program's need to offset various rising expenses, to
increase its unobligated balance, and to incorporate user-fee funding
for standardization activities, AMS proposes to increase the fees for
destination market inspection services. Additionally, regulations would
be added or clarified to (1) establish a new inspection fee for 50
packages or less of the same product; (2) reflect the lower level of
effort typically required to inspect small lots compared to that
required for half carlot equivalent lots with 500 to 1,000 packages;
(3) charge for waiting time at the prevailing hourly rate when an
inspection is delayed because product is not available or readily
accessible; and (4) apply dock-side inspection fees to cases where the
applicant offers the product to AMS for inspection at the dock-side
facility but AMS chooses to inspect the product at another location.
The following table compares current fees and charges with proposed
fees and charges for fresh fruit and vegetable inspection as found in 7
CFR 51.38. Unless otherwise provided for by regulation or written
agreement between the applicant and the Administrator, the charges in
the schedule of fees as found in Sec. 51.38 are:
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Service Current Proposed
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Quality and condition inspections of one to four products each in
quantities of 51 or more packages and unloaded from the same land
or air conveyance:
Over a half carlot equivalent of each product................... $68................. $74
Half carlot equivalent or less of each product.................. 57.................. 62
For each additional lot of the same product..................... 11.................. 12
Condition inspections of one to four products each in quantities of
51 or more packages and unloaded from the same land or air
conveyance:
Over a half carlot equivalent of each product................... 57.................. 62
Half carlot equivalent or less of each product.................. 52.................. 57
For each additional lot of the same product..................... 11.................. 12
Inspections of five or more products each in quantities of 51 or
more packages and unloaded from the same land or air conveyance:
For the first five products..................................... 242................. 264
For each additional product..................................... 11.................. 37
For each additional lot of any product.......................... 11.................. 12
Inspections of products each in quantities of 50 or less packages
unloaded from the same land or air conveyance:
For each product................................................ 57 (52 for condition 37
only).
For each additional lot of any product.......................... 11.................. 12
Dock-side inspections of an individual product unloaded directly
from the same ship:
For each package weighing less than 15 pounds................... 1 cent.............. 1.1 cents
For each package weighing 15 to 29 pounds....................... 2 cents............. 2.2 cents
For each package weighing 30 or more pounds..................... 3 cents............. 3.3 cents
Minimum charge per individual product........................... 68.................. 74
Inspections performed for other purposes during the grader's 34.00 per hour...... 37.00 per hour
regularly scheduled work week.
Overtime or holiday premium rate for all inspections performed 17.00 per hour...... 18.50 per hour
outside the grader's regularly scheduled work week.
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List of Subjects in 7 CFR Part 51
Agricultural commodities, Food grades and standards, Fruits, Nuts,
Reporting and recordkeeping requirements, Vegetables.
For the reasons set forth in the preamble, 7 CFR part 51 is
proposed to be amended as follows:
PART 51--[AMENDED]
1. The authority citation for 7 CFR part 51 is revised to read as
follows:
Authority: 7 U.S.C. 1622, 1624.
2. Section 51.38 is revised to read as follows:
Sec. 51.38 Basis for fees and rates.
(a) When performing inspections of product unloaded directly from
land or air transportation, charges shall be determined on the
following basis:
(1) For products in quantities of 51 or more packages:
(i) Quality and condition inspection of 1 to 4 products unloaded
from the same conveyance:
(A) $74 for over a half carlot equivalent of an individual product.
(B) $62 for a half carlot equivalent or less of an individual
product.
(C) $12 for each additional lot identified on an inspection
certificate for the same product.
(ii) Condition only inspection of 1 to 4 products unloaded from the
same conveyance:
(A) $62 for over a half carlot equivalent of an individual product.
(B) $57 for a half carlot equivalent or less of an individual
product.
(C) $12 for each additional lot identified on an inspection
certificate for the same product.
(iii) Quality and condition inspection and/or condition only
inspection of 5 or more products unloaded from the same conveyance:
(A) $264 for the first 5 products.
(B) $37 for each additional product.
(C) $12 for each additional lot identified on an inspection
certificate for any of the products.
(2) For quality and condition inspection and/or condition only
inspection of products in quantities of 50 or less packages unloaded
from the same conveyance:
(i) $37 for each individual product.
(ii) $12 for each additional lot identified on an inspection
certificate for any product.
(b) When performing inspections of palletized products unloaded
directly from sea transportation or when palletized product is first
offered for inspection before being transported from the dock-side
facility, charges shall be determined on the following basis:
(1) On a package basis, with a minimum charge of $74 for each
product inspected, according to the following rates:
(i) 1.1 cents per package weighing less than 15 pounds;
(ii) 2.2 cents per package weighing 15 to 29 pounds; and
(iii) 3.3 cents per package weighing 30 or more pounds.
(2) On a carlot basis in accordance with Sec. 51.38(a) for products
in sea containers, or when product is first offered for inspection
after being transported from the dock-side facility. If palletized
products are not offered for inspection at dock-side, the carlot fees
in Sec. 51.38(a) shall apply.
(c) When performing inspections for Government agencies, or for
purposes other than those prescribed in the preceding paragraphs
including weight-only and freezing-only inspections, fees for
inspection shall be based on the time consumed by the grader in
connection with such inspections, computed at a rate of $37.00 an hour:
Provided, That:
(1) Charges for time shall be rounded to the nearest half hour;
(2) The minimum fee shall be two hours for weight-only inspections,
and one-half hour for other inspections;
(3) When weight certification is provided in addition to quality
and/or condition inspection, a one-hour charge shall be added to the
carlot fee.
(4) When inspections are performed to certify product compliance
for Defense Personnel Support Centers, the daily or weekly charge shall
be determined by multiplying the total hours consumed to conduct
inspections by the hourly rate. The daily or weekly charge shall be
prorated among applicants by multiplying the daily or weekly charge by
the percentage of product passed and/or failed for each applicant
during that day or week. Waiting time and overtime charges shall be
charged directly to the applicant responsible for their incurrence.
(d) When performing inspections at the request of the applicant
during periods which are outside the grader's regularly scheduled work
week, a charge for overtime or holiday work shall be made at the rate
of $18.50 per hour or portion thereof in addition to the carlot
equivalent fee, package charge, or hourly charge specified in this
subpart. Overtime or holiday charges for time shall be rounded to the
nearest half hour.
(e) When an inspection is delayed because product is not available
or readily accessible, a charge for waiting time shall be made at the
prevailing hourly rate in addition to the carlot equivalent fee,
package charge, or hourly charge specified in this subpart. Waiting
time shall be rounded to the nearest half hour.
Dated: February 15, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-4121 Filed 2-23-94; 8:45 am]
BILLING CODE 3410-02-P
