[Federal Register Volume 61, Number 57 (Friday, March 22, 1996)]
[Proposed Rules]
[Pages 11776-11778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6983]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 1230
[No. LS-96-001]
Pork Promotion, Research, and Consumer Information Order--
Increase in Importer Assessments
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer
Information Act (Act) of 1985 and the Pork Promotion, Research, and
Consumer Information Order (Order), this proposed rule would increase
the amount of the assessment per pound due on imported pork and pork
products to reflect an increase in the 1995 five-market average price
for domestic barrows and gilts. This proposed action would bring the
equivalent market value of the live animals from which such imported
pork and pork products were derived in line with the market values of
domestic porcine animals. These proposed changes will facilitate the
continued collection of assessments on imported porcine animals, pork,
and pork products.
DATES: Comments must be received by April 22, 1996.
ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief;
Marketing Programs Branch; Livestock and Seed Division; Agricultural
Marketing Service (AMS), USDA, Room 2606-S; P.O. Box 96456; Washington,
D.C. 20090-6456. Comments will be available for public inspection
during regular business hours at the above office in Room 2606 South
Building; 14th and Independence Avenue, SW.; Washington, D.C. 20090-
6456.
FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing
Programs Branch, 202/720-1115.
SUPPLEMENTARY INFORMATION: The Department of Agriculture (Department)
is issuing this proposed rule in conformance with Executive Order
12866.
This proposed rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This proposal is not intended to have a
retroactive effect. The Act states that the statute is intended to
occupy the field of promotion and consumer education involving pork and
pork products and of obtaining funds thereof from pork producers and
that the regulation of such activity (other than a regulation or
requirement relating to a matter of public health or the provision of
State or local funds for such activity) that is in addition to or
different from the Act may not be imposed by a State.
[[Page 11777]]
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under Sec. 1625 of the Act, a
person subject to an order may file a petition with the Secretary
stating that such order, a provision of such order or an obligation
imposed in connection with such order is not in accordance with the
law; and requesting a modification of the order or an exemption from
the order. Such person is afforded the opportunity for a hearing on the
petition. After the hearing, the Secretary would rule on the petition.
The Act provides that the district court of the United States in the
district in which person resides or does business has jurisdiction to
review the Secretary's determination, if a complaint is filed not later
than 20 days after the date such person receives notice of such
determination.
This action also was reviewed under the Regulatory Flexibility Act
(RFA) (5 United States Code (U.S.C.) 601 et seq.). The effect of the
Order upon small entities was discussed in the September 5, 1986, issue
of the Federal Register (51 FR 31898), and it was determined that the
Order would not have a significant effect upon a substantial number of
small entities. Many of the estimated 200 importers may be classified
as small entities. This proposed rule would increase the amount of
assessments on imported pork and pork products subject to assessment by
two-hundredths of a cent per pound, or as expressed in cents per
kilogram, four-hundredths of a cent per kilogram. Adjusting the
assessments on imported pork and pork products would result in an
estimated increase in assessments of $104,000 over a 12-month period.
Accordingly, the Administrator of AMS has determined that this action
would not have a significant economic impact on a substantial number of
small entities.
The Act (7 U.S.C. 4801-4819) approved December 23, 1985, authorized
the establishment of a national pork promotion, research, and consumer
information program. The program was funded by an initial assessment
rate of 0.25 percent of the market value of all porcine animals
marketed in the United States and an equivalent amount of assessment on
imported porcine animals, pork, and pork products. However, that rate
was increased to 0.35 percent in 1991 (56 FR 51635) and to 0.45 percent
effective September 3, 1995 (60 FR 29963). The final Order establishing
a pork promotion, research, and consumer information program was
published in the September 5, 1986, issue of the Federal Register (51
FR 31898; as corrected, at 51 FR 36383 and amended at 53 FR 1909, 53 FR
30243, 56 FR 4, 56 FR 51635, and 60 FR 29963) and assessments began on
November 1, 1986.
The Order requires importers of porcine animals to pay U.S. Customs
Service (USCS), upon importation, the assessment of 0.45 percent of the
animal's declared value and importers of pork and pork products to pay
USCS, upon importation, the assessment of 0.45 percent of the market
value of the live porcine animals from which such pork and pork
products were produced. This proposed rule would increase the
assessments on all of the imported pork and pork products subject to
assessment as published in the Federal Register as a final rule June 7,
1995, and effective on September 3, 1995; (60 FR 29965). This increase
is consistent with the increase in the annual average price of domestic
barrows and gilts for calendar year 1995 as reported by USDA, AMS,
Livestock and Grain Market News (LGMN) Branch. This increase in
assessments would make the equivalent market value of the live porcine
animal from which the imported pork and pork products were derived
reflect the recent increase in the market value of domestic porcine
animals, thereby promoting comparability between importer and domestic
assessments. This proposed rule would not change the current assessment
rate of 0.45 percent of the market value.
The methodology for determining the per pound amounts for imported
pork and pork products was described in the Supplementary Information
accompanying the Order and published in the September 5, 1986, Federal
Register at 51 FR 31901. The weight of imported pork and pork products
is converted to a carcass weight equivalent by utilizing conversion
factors which are published in the Department's Statistical Bulletin
No. 697 ``Conversion Factors and Weights and Measures.'' These
conversion factors take into account the removal of bone, weight lost
in cooking or other processing, and the nonpork components of pork
products. Secondly, the carcass weight equivalent is converted to a
live animal equivalent weight by dividing the carcass weight equivalent
by 70 percent, which is the average dressing percentage of porcine
animals in the United States. Thirdly, the equivalent value of the live
porcine animal is determined by multiplying the live animal equivalent
weight by an annual average market price for barrows and gilts as
reported by USDA, AMS, LGMN Branch. This average price is published on
a yearly basis during the month of January in LGMN Branch's publication
``Livestock, Meat, and Wool Weekly Summary and Statistics.'' Finally,
the equivalent value is multiplied by the applicable assessment rate of
0.45 percent due on imported pork and pork products. The end result is
expressed in an amount per pound for each type of pork or pork product.
To determine the amount per kilogram for pork and pork products subject
to assessment under the Act and Order, the cent-per-pound assessments
are multiplied by a metric conversion factor 2.2046 and carried to the
sixth decimal.
The formula in the preamble for the Order at 51 FR 31901
contemplated that it would be necessary to recalculate the equivalent
live animal value of imported pork and pork products to reflect changes
in the annual average price of domestic barrows and gilts to maintain
equity of assessments between domestic porcine animals and imported
pork and pork products.
The average annual market price increased from $39.57 in 1994 to
$41.76 in 1995, an increase of about 6 percent. This increase would
result in a corresponding increase in assessments for all HTS numbers
listed in the table in Sec. 1230.110, 60 FR 29965; June 7, 1995, of an
amount equal to two-hundredths of a cent per pound, or as expressed in
cents per kilogram, four-hundredths of a cent per kilogram. Based on
the most recent available Department of Commerce, Bureau of Census,
data on the volume of imported pork and pork products available for the
period January 1, 1995, through September 30, 1995, the proposed
increase in assessment amounts would result in an estimated $104,000
increase in assessments over a 12-month period.
List of Subjects in 7 CFR Part 1230
Administrative practice and procedure, Advertising, Agricultural
research, Marketing agreement, Meat and meat products, Pork and pork
products.
For the reasons set forth in the preamble, it is proposed that 7
CFR Part 1230 be amended as follows:
PART 1230-PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION
1. The authority citation for 7 CFR Part 1230 continues to read as
follows:
Authority: 7 U.S.C. 4801-4819.
Subpart B--[Amended]
2. In Subpart B--Rules and Regulations, Sec. 1230.110 is revised to
read as follows:
[[Page 11778]]
Sec. 1230.110 Assessments on imported pork and pork products.
(a) The following HTS categories of imported live porcine animals
are subject to assessment at the rate specified.
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Live porcine animals Assessment
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0103.10.0000.............................. 0.45 percent Customs Entered
Value.
0103.91.0000.............................. 0.45 percent Customs Entered
Value.
0103.92.0000.............................. 0.45 percent Customs Entered
Value.
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(b) The following HTS categories of imported pork and pork products
are subject to assessment at the rates specified.
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Assessment
Pork and pork products -----------------------
cents/lb cents/kg
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0203.11.0000.................................... .27 .595242
0203.12.1010.................................... .27 .595242
0203.12.1020.................................... .27 .595242
0203.12.9010.................................... .27 .595242
0203.12.9020.................................... .27 .595242
0203.19.2010.................................... .31 .683426
0203.19.2090.................................... .31 .683426
0203.19.4010.................................... .27 .595242
0203.19.4090.................................... .27 .595242
0203.21.0000.................................... .27 .595242
0203.22.1000.................................... .27 .595242
0203.22.9000.................................... .27 .595242
0203.29.2000.................................... .31 .683426
0203.29.4000.................................... .27 .595242
0206.30.0000.................................... .27 .595242
0206.41.0000.................................... .27 .595242
0206.49.0000.................................... .27 .595242
0210.11.0010.................................... .27 .595242
0210.11.0020.................................... .27 .595242
0210.12.0020.................................... .27 .595242
0210.12.0040.................................... .27 .595242
0210.19.0010.................................... .31 .683426
0210.19.0090.................................... .31 .683426
1601.00.2010.................................... .37 .815702
1601.00.2090.................................... .37 .815702
1602.41.2020.................................... .41 .903886
1602.41.2040.................................... .41 .903886
1602.41.9000.................................... .27 .595242
1602.42.2020.................................... .41 .903886
1602.42.2040.................................... .41 .903886
1602.42.4000.................................... .27 .595242
1602.49.2000.................................... .37 .815702
1602.49.4000.................................... .31 .683426
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Dated: March 18, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-6983 Filed 3-21-96; 8:45 am]
BILLING CODE 3410-02-P
