[Federal Register Volume 64, Number 111 (Thursday, June 10, 1999)]
[Proposed Rules]
[Pages 31158-31159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14689]
[[Page 31158]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1230
[No. LS-99-03]
Pork Promotion, Research, and Consumer Information Order--
Decrease 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) issued thereunder, this proposed
rule would decrease by sixteen-hundredths of a cent per pound the
amount of the assessment per pound due on imported pork and pork
products to reflect a decrease in the 1998 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 July 12, 1999.
ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief;
Marketing Programs Branch; Livestock and Seed Program; Agricultural
Marketing Service (AMS), USDA; STOP 0251; 1400 Independence Avenue,
SW.; Washington, D.C. 20250-0251. Comments will be available for public
inspection during regular business hours at the above office in Room
2627 South Building; 14th and Independence Avenue, SW.; Washington,
D.C. 20250-0251.
FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing
Programs Branch, 202/720-1115.
SUPPLEMENTARY INFORMATION:
Executive Orders 12866 and 12778 and Regulatory Flexibility Act
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 12988,
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.
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 a 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 initially was discussed in the September 5,
1986, issue of the Federal Register. (51 FR 31898). It was determined
at that time that the Order would not have a significant effect upon a
substantial number of small entities. Many of the estimated 1,000
importers may be classified as small entities under the Small Business
Administration definition (13 CFR 121.601).
This proposed rule would decrease the amount of assessments on
imported pork and pork products subject to assessment by sixteen-
hundredths of a cent per pound, or as expressed in cents per kilogram,
thirty-three-hundredths of a cent per kilogram. This decrease is
consistent with the decrease in the annual average price of domestic
barrows and gilts for calendar year 1998. The average annual market
price decreased from $51.30 per hundredweight in 1997 to $31.82 per
hundredweight in 1998, a decrease of about 38 percent. Adjusting the
assessments on imported pork and pork products would result in an
estimated decrease in assessments of $888,000 over a 12-month period.
Assessments collected for 1998 were $3,834,656. 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, 60 FR 29962, 60 FR 33681 and 60 FR 58501)
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 decrease the
assessments on all of the imported pork and pork products subject to
assessment as published in the Federal Register as a final rule August
28, 1998, and effective on September 28, 1998; (63 FR 45935). Based on
information reported by USDA, AMS, Livestock and Grain Market News
(LGMN) Branch, this decrease is consistent with the decrease in the
annual average price of domestic barrows and gilts for calendar year
1998. This decrease 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 decrease 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
[[Page 31159]]
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 based on
information reported by USDA, AMS, LGMN Branch. 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 decreased from $51.30 per
hundredweight in 1997 to $31.82 per hundredweight in 1998, a decrease
of about 38 percent. This decrease would result in a corresponding
decrease in assessments for all HTS numbers listed in the table in
Sec. 1230.110, 63 FR 45935; August 28, 1998, of an amount equal to
sixteen-hundredths of a cent per pound, or as expressed in cents per
kilogram, thirty-three 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, 1998, through December 31, 1998, the proposed decrease in
assessment amounts would result in an estimated $888,000 decrease in
assessments over a 12-month period.
This proposed rule provides for a 30-day comment period. This
comment period is appropriate because the proposed rule simply provides
for an adjustment in the per pound assessment levels on imported pork
and pork products to reflect changes in live hog prices which occurred
from 1997 to 1998. These live hog prices form the basis for the
assessments. This adjustment, if adopted, should be made effective as
soon as possible to promote optimum equity.
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 Sec. 1230.110 paragraph (b) is revised to read as follows:
Sec. 1230.110 Assessments on imported pork and pork products.
* * * * *
(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......................................... .20 .440920
0203.12.1010......................................... .20 .440920
0203.12.1020......................................... .20 .440920
0203.12.9010......................................... .20 .440920
0203.12.9020......................................... .20 .440920
0203.19.2010......................................... .24 .529104
0203.19.2090......................................... .24 .529104
0203.19.4010......................................... .20 .440920
0203.19.4090......................................... .20 .440920
0203.21.0000......................................... .20 .440920
0203.22.1000......................................... .20 .440920
0203.22.9000......................................... .20 .440920
0203.29.2000......................................... .24 .529104
0203.29.4000......................................... .20 .440920
0206.30.0000......................................... .20 .440920
0206.41.0000......................................... .20 .440920
0206.49.0000......................................... .20 .440920
0210.11.0010......................................... .20 .440920
0210.11.0020......................................... .20 .440920
0210.12.0020......................................... .20 .440920
0210.12.0040......................................... .20 .440920
0210.19.0010......................................... .24 .529104
0210.19.0090......................................... .24 .529104
1601.00.2010......................................... .28 .617288
1601.00.2090......................................... .28 .617288
1602.41.2020......................................... .31 .683426
1602.41.2040......................................... .31 .683426
1602.41.9000......................................... .20 .440920
1602.42.2020......................................... .31 .683426
1602.42.2040......................................... .31 .683426
1602.42.4000......................................... .20 .440920
1602.49.2000......................................... .28 .617288
1602.49.4000......................................... .24 .529104
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Dated: June 4, 1999.
Barry L. Carpenter,
Deputy Administrator, Livestock and Seed Program.
[FR Doc. 99-14689 Filed 6-9-99; 8:45 am]
BILLING CODE 3410-02-P
