[Federal Register Volume 62, Number 119 (Friday, June 20, 1997)]
[Notices]
[Pages 33582-33583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16248]
========================================================================
Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
========================================================================
Federal Register / Vol. 62, No. 119 / Friday, June 20, 1997 /
Notices
[[Page 33582]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Farm Service Agency
U.S. Warehouse Act Fees
AGENCY: Farm Service Agency, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The purpose of this notice is to publish a schedule increasing
the fees to be charged under the United States Warehouse Act (USWA)
regulations covering cotton, grain, tobacco, wool, dry bean, nut,
syrup, and cottonseed warehouse operators for licensing and inspection
services.
EFFECTIVE DATE: October 1, 1997.
FOR FURTHER INFORMATION CONTACT: Mr. Steve Mikkelsen, Warehouse and
Inventory Division, Farm Service Agency, United States Department of
Agriculture, 1400 Independence Avenue, SW, STOP 0553, Washington, DC
20250-0553, telephone (202) 720-7433, FAX (202) 690-3123.
Background
Pursuant to the provisions of the USWA which regulates warehouse
operations for the benefit of all depositors, the Secretary has the
authority to license public warehouse operators. Warehouse operators
that opt to have a USWA license understand that fees will be imposed to
cover the costs of the program. Specifically, the Omnibus Budget
Reconciliation Act of 1981 mandates the imposition of fees for USWA
licensed warehouses. The Act provides in part, that:
The Secretary of Agriculture * * * shall charge, assess, and cause
to be collected a reasonable fee for: (l) Each examination or
inspection of a warehouse * * *; (2) each license issued to any person
to classify, inspect, grade, sample, or weigh agricultural products
stored or to be stored * * *; (3) each annual warehouse license issued
to a warehouseman to conduct a warehouse * * *; and (4) each warehouse
license amended, modified, extended, or reinstated * * *. Such fees
shall cover, as nearly as practicable, the costs of providing such
services and licenses * * * including administrative and supervisory
costs * * *.
The USWA mandates fee collections to help self-sustain the Federal
warehouse licensing and examination programs. The Farm Service Agency
(FSA) is raising USWA license and user fees to increase the amount of
revenue generated to recover more of the actual operating costs for the
USWA in fiscal year 1998 (FY).
The regulations used in administering USWA fees were last amended
effective October 1, 1994, (59 FR 51355), at which time an annual fee
was imposed with respect to cotton warehouse operators. These
regulations at 7 CFR part 735-743 provide that USWA fees could be
adjusted annually in order to cover, as nearly as practicable, the
operating costs for the program.
A comprehensive review of the warehouse examination program was
performed to review staffing levels, travel expenses, services that
warehouse operators can expect to receive, services for which warehouse
operators are willing to pay, and the type and scope of examinations
needed to adequately protect a depositor's interest in warehouses
licensed under the USWA.
As a result of streamlining and restructuring of the Kansas City
Commodity Office (KCCO) FSA, and the Washington office of FSA, the
total staffing of FSA personnel associated with USWA activities has
been reduced by 18.5 percent (i.e., warehouse examiners and office
personnel) while supervisory staffing levels have been reduced by 24
percent. Other efficiencies have been achieved through a variety of
means including: the purchase and use of laptop computers for field
warehouse examiners, thereby reducing time in performing examinations
and reducing printing costs for forms used in examinations; and the
reduction in travel expenses by personnel in KCCO and in Washington.
The FY 98 fee adjustments reflect increases of no greater than 10
percent for each type of commodity with the rate of increase depending
on FSA's direct costs with respect to warehouse examinations for that
commodity.
Establishing an electronic data interchange (EDI) system for those
agricultural products approved under the USWA has the potential of
providing U.S. agribusiness and the USWA warehouse examination program
considerable savings. For example, since 1995 electronic warehouse
receipts (EWRs) have been used by the cotton industry and it is
estimated that $5 to $10 per bale has been saved for each EWR issued in
lieu of a paper receipt for a total savings of $40 to $80 million per
year. The use of EDI for cotton has reduced the costs of the USWA
warehouse examination program by approximately 30 percent. Similarly,
the use of EWRs for grain and other agricultural products approved
under the USWA would represent a major step in reducing the paperwork
burden that currently impedes efficiency and add costs to the
operations of agribusiness and the USWA. However, because of statutory
restriction EWRs are only authorized for cotton.
Warehouse and Service License Fees
The fee for original issuance, reissuance, or duplication of a
license for cotton, grain, tobacco, wool, dry beans, nut, syrup, and
cottonseed is $75 for each license issued. The fee charged to license
individuals to inspect, sample, grade, classify, or weigh commodities
is $30 for each service license issued.
Warehouse Annual and Inspection Fees
These fees are shown in the following tables by agricultural
product. Inspection fees are assessed for each original examination or
inspection, or reexamination or reinspection for modification of an
existing license. Annual fees are assessed independently of inspection
fees.
Cotton
[In bales]
------------------------------------------------------------------------
Annual Annual
fee for fee for
each each
warehouse warehouse
Licensed capacity location location
with a without a
CCC CCC
storage storage
agreement agreement
------------------------------------------------------------------------
1-20,000.......................................... $550 $1,100
20,001-40,000..................................... 715 1,430
40,001-60,000..................................... 880 1,760
60,001-80,000..................................... 1,100 2,200
80,001-100,000.................................... 1,375 2,750
[[Page 33583]]
100,001-120,000................................... 1,650 3,300
120,001-140,000................................... 1,925 3,850
140,001-160,000................................... 2,200 4,400
160,001+.......................................... \1\ 2,200 \2\ 4,400
------------------------------------------------------------------------
\1\ Plus $55 per 5,000 bale capacity above 160,000 bales or fraction
thereof.
\2\ Plus $110 per 5,000 bale capacity above 160,000 or fraction thereof.
Inspection fees will be charged at the rate of $75 for each 1,000 bales
of licensed capacity, or fraction thereof, but in no case less than
$150 nor more than $1,500.
Grain
[In bushels]
------------------------------------------------------------------------
Annual Annual
fee for fee for
each each
warehouse warehouse
Licensed Capacity location location
with a without a
CCC CCC
storage storage
agreement agreement
------------------------------------------------------------------------
1-150,000......................................... $145 $290
150,001-250,000................................... 290 580
250,001-500,000................................... 430 860
500,001-750,000................................... 575 1,150
750,001-1,000,000................................. 715 1,430
1,000,001-1,200,000............................... 860 1,720
1,200,001-1,500,000............................... 1,000 2,000
1,500,001-2,000,000............................... 1,145 2,290
2,000,001-2,500,000............................... 1,290 2,580
2,500,001-5,000,000............................... 1,430 2,860
5,000,001-7,500,000............................... 1,575 3,150
7,500,001-10,000,000.............................. 1,720 3,440
10,000,001+....................................... \1\ 1,720 \2\ 3,440
------------------------------------------------------------------------
\1\ Plus $45 per million bushels above 10,000,000 or fraction thereof.
\2\ Plus $90 per million bushels above 10,000,000 or fraction thereof.
Inspection fees will be charged at the rate of $15 for each 10,000
bushels or fraction thereof, but in no case less than $150 nor more
than $1,500.
Dry Beans
[In hundredweight]
------------------------------------------------------------------------
Annual
Licensed capacity fee
------------------------------------------------------------------------
100-90,000................................................... $715
90,001-150,000............................................... 1,000
150,001-300,000.............................................. 1,290
300,001-450,000.............................................. 1,575
450,001-600,000.............................................. 1,860
600,001-720,000.............................................. 2,145
720,001-900,000.............................................. 2,435
900,001-1,200,000............................................ 2,720
1,200,001-1,500,000.......................................... 3,000
1,500,001-3,000,000.......................................... 3,290
3,000,001+................................................... 3,575
------------------------------------------------------------------------
Inspection fees will be charged at the rate of $15 for each 1,000
hundredweight, or fraction thereof, but in no case less than $150 nor
more than $1,500.
Tobacco and Wool
Annual fee: $15 for each 100,000 pounds of licensed capacity, or
fraction thereof, but in no case less than $575.
Inspection fee: $15 for each 100,000 pounds of licensed capacity,
or fraction thereof, but in no case less than $1,500.
Nuts
Annual fee: 13 cents for each 100 short ton of licensed capacity,
or fraction thereof, but in no case less than $575.
Inspection fee: $7 for each 100 short ton of licensed capacity, or
fraction thereof, of peanuts and $13 for each 1,000 hundredweight, or
fraction thereof, but in no case less than $150 nor more than $1,500.
Syrup
Annual fee: $15 for each 5,000 gallons of licensed capacity, or
fraction thereof, but in no case less than $575.
Inspection fee: $5 for each 5,000 gallons, or fraction thereof, but
in no case less than $150 nor more than $1,500.
Cottonseed
Annual fee: $15 for each 1,000 short tons of licensed capacity, or
fraction thereof, but in no case less than $575.
Inspection fee: $15 for each 1,000 short tons of licensed capacity,
or fraction thereof, but in no case less than $150 nor more than
$1,500.
Signed at Washington, D.C., on June 16, 1997.
Richard O. Newman,
Acting Administrator, Farm Service Agency.
[FR Doc. 97-16248 Filed 6-19-97; 8:45 am]
BILLING CODE 3410-05-P
