[Federal Register Volume 61, Number 94 (Tuesday, May 14, 1996)]
[Proposed Rules]
[Pages 24247-24249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12057]
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Proposed Rules
Federal Register
________________________________________________________________________
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. 61, No. 94 / Tuesday, May 14, 1996 / Proposed
Rules
[[Page 24247]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR PART 51
[Docket Number FV-95-306]
Fresh Fruits, Vegetables and Other Products (Inspection,
Certification, and Standards)
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This document would revise the regulations governing
inspection and certification for fresh fruits, vegetables and other
products by increasing the fees charged for the inspection of these
products at destination markets. These revisions are necessary in order
to recover, as nearly as practicable, the costs of performing
inspection services at destination markets under the Agricultural
Marketing Act of 1946.
DATES: Comments must be postmarked or courier dated on or before July
15, 1996.
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 2049 South Building, Washington, DC
20090-6456. Comments should note the date and page number of this issue
of the Federal Register and will be made available for public
inspection in the office of the Branch Chief during regular business
hours.
FOR FURTHER INFORMATION CONTACT: Robert J. Huttenlocker, at the above
address or call, (202) 720-0297.
SUPPLEMENTARY INFORMATION: This proposed rule has been determined to be
not significant for purposes of Executive Order 12866, and therefore
has not been reviewed by the Office of Management and Budget.
This proposed rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This action is not intended to have retroactive
effect. This rule will 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.
The Agricultural Marketing Service (AMS), has certified that this
action will not have a significant impact on a substantial number of
small entities, as defined in the Regulatory Flexibility Act, (5 U.S.C.
601). The proposed rule reflects certain fee increases needed to
recover the costs of inspection services rendered in accordance with
the Agricultural Marketing Act (AMA) of 1946.
The AMA authorizes 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. This
proposal would amend the schedule for fees and charges for inspection
services rendered to the fresh fruit and vegetable industry to reflect
the costs currently associated with the program.
AMS regularly reviews these programs to determine if fees are
adequate. Employee salaries and benefits are major program costs that
account for approximately 86 percent of the total operating budget. A
general and locality salary increase for Federal employees, ranging
from 3.09 to 6.25 percent depending on locality, effective January
1995, has materially affected program costs. Another general and
locality salary increase, ranging from 2.39 to 2.87 percent depending
upon locality (amounting to approximately $253,000), was effective
January 1996; further standardization program costs must be paid for by
user fees.
While a concerted effort to cut costs resulted in overhead savings
of $350,000 in FY 95 over FY 94, the last fee increase of June 1994 did
not result in collection of enough revenue to cover all these increases
and still maintain an adequate reserve balance (four months of costs)
called for by Agency policy (AMS Directive 407.1) and prudent financial
management. Currently the Fresh Products Branch (FPB) trust fund
reserve balance for the market program is approximately $1 mil. under
the desired level of $3.9 mil. Further action is necessary to meet
rising costs and maintain adequate reserve balances. This action will
assist in moving the FPB trust fund toward a more adequate level and
will result in an estimated $614,000 in additional revenues. Projected
FY96 revenues for market inspection are $12.555 mil with costs
projected at $11.594 mil and a reserve of $3.093.
Based on the Agency's analysis of increased costs since 1994, AMS
proposes to increase the fees for destination market inspection
services. 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 $74.............................. $78.
product.
Half carlot equivalent or less of each $62.............................. $65.
product.
For each additional lot of the same $12.............................. $13.
product.
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 $62.............................. $65.
product.
[[Page 24248]]
Half carlot equivalent or less of each $57.............................. $60.
product.
For each additional lot of the same $12.............................. $13.
product.
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............ $264............................. $277.
For each additional product............ $37.............................. $39.
For each additional lot of any of the $12.............................. $13.
same product.
Inspections of products each in quantities
of 50 or less packages unloaded from the
same land or air conveyance:
For each product....................... $37.............................. $39.
For each additional lot of any of the $12.............................. $13.
same product.
Dock-side inspections of an individual
product unloaded directly from the same
ship:
For each package weighing less than 15 1 cent........................... No change.
pounds.
For each package weighing 15 to 29 2 cents.......................... No change.
pounds.
For each package weighing 30 or more 3 cents.......................... No change.
pounds.
For each additional lot of any of the $12.............................. $13.
same product.
Minimum charge per individual product...... $74.............................. $78.
Inspections performed for other purposes $37 per hour..................... $39 per hour.
during the grader's regularly scheduled
work week.
Overtime or holiday premium rate for all $18.50 per hour.................. $19.50 per hour.
inspections performed outside the
hourgrader'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, Trees, Vegetables.
PART 51--[AMENDED]
For reasons set forth in the preamble, 7 CFR Part 51 is proposed to
be amended as follows:
1. The authority citation for 7 CFR Part 51 continues to read as
follows:
Authority: 7 U.S.C. 1621-1627.
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, the 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) $78 for over a half carlot equivalent of an individual product.
(B) $65 for a half carlot equivalent or less of an individual
product.
(C) $13 for each additional lot of the same product.
(ii) Condition only inspection of 1 to 4 products unloaded from the
same conveyance:
(A) $65 for over a half carlot equivalent of an individual product.
(B) $60 for a half carlot equivalent or less of an individual
product.
(C) $13 for each additional lot of the same product.
(iii) Quality and condition inspection and/or condition only
inspection of 5 or more products unloaded from the same conveyance:
(A) $277 for the first 5 products.
(B) $39 for each additional product.
(C) $13 for each additional lot of any of the same product.
(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) $39 for each individual product.
(ii) $13 for each additional lot of any of the same 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) For each package inspected according to the following rates:
(i) 1 cent per package weighing less than 15 pounds;
(ii) 2 cents per package weighing 15 to 29 pounds; and
(iii) 3 cents per package weighing 30 or more pounds.
(2) $13 for each additional lot of any of the same product.
(3) A minimum charge of $78 for each product inspected.
(c) When performing inspections of products from sea containers
unloaded directly from sea transportation or when palletized products
unloaded directly from sea transportation are not offered for
inspection at dockside, the car-lot fees in Sec. 51.38(a) shall apply.
(d) 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 $39 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.
(e) When performing inspections at the request of the applicant
during periods which are outside the graders regularly scheduled work
week, a charge for overtime or holiday work shall be made at the rate
of $19.50 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.
(f) 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.
[[Page 24249]]
Dated: May 8, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-12057 Filed 5-13-96; 8:45 am]
BILLING CODE 3410-02-P
