[Federal Register Volume 59, Number 202 (Thursday, October 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25961]
[[Page Unknown]]
[Federal Register: October 20, 1994]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Stabilization and Conservation Service
7 CFR Part 782
RIN 0560-AD77
End-Use Certificate Program
AGENCY: Agricultural Stabilization and Conservation Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This rule proposes to implement a U.S. end-use certificate
program for wheat and barley imported from any foreign country or
instrumentality that as of April 8, 1994, requires end-use certificates
for imports of U.S.-produced wheat and barley, respectively, as
required by section 321(f) of the North American Free Trade Agreement
Implementation Act (the Act).
A notice requesting comments regarding a U.S. end-use certificate
system was published in the Federal Register on April 13, 1994, at 59
FR 17495. Comments were solicited with respect to the alternatives and
issues that need to be addressed in implementing such a program. These
comments were taken into consideration by the Agricultural
Stabilization and Conservation Service (ASCS) with respect to the
development of this proposed rule.
DATES: Comments must be received by November 21, 1994 to be assured of
consideration.
ADDRESSES: Comments must be mailed to Deputy Administrator, Commodity
Operations, ASCS, P.O. Box 2415, Washington, DC 20013-2415. All written
comments will be available for public inspection in room 5755, South
Building, U.S. Department of Agriculture, 14th Street and Independence
Avenue, SW., Washington, DC, between 8 a.m. and 5 p.m., Monday through
Friday, except holidays.
FOR FURTHER INFORMATION CONTACT: Steve Gill, Chief, Inventory
Management Branch, Commodity Operations Division, ASCS, P.O. Box 2415,
Washington, DC 20013-2415; phone 202-720-6500 or FAX 202-690-2221.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be significant and was reviewed by
the Office of Management and Budget (OMB) under Executive Order 12866.
Executive Order 12778
This proposed rule has been reviewed in accordance with Executive
Order 12778. The provisions of this proposed rule do not preempt State
laws, are not retroactive, and do not involve administrative appeals.
Environmental Evaluation
It has been determined by an environmental evaluation that this
action will not have a significant impact on the quality of the human
environment. Therefore, neither an Environmental Assessment nor an
Environmental Impact Statement is needed.
Executive Order 12372
This program/activity is not subject to the provisions of Executive
Order 12372, which requires intergovernmental consultation with State
and local officials. See notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24, 1983).
Paperwork Reduction Act
This proposed rule contains new reporting and recordkeeping
requirements. The public reporting burden for the information
collection contained in this proposed rule with respect to a U.S. end-
use certificate program is estimated to average 10 minutes for each
end-use certificate and six and one-half hours for each quarterly
report, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. These new
reporting and recordkeeping requirements will be submitted to OMB for
expedited approval under the provisions of 44 U.S.C. 35 (see appendix
A). Send comments regarding this collection of information to:
Department of Agriculture, Clearance Office, Office of Information
Resources Management, Room 404-W, Washington, DC 20250, and Regulatory
Affairs of OMB, Attention: Desk Officer for USDA, Room 3201, New
Executive Office Building, Washington, DC 20503.
Preliminary Regulatory Impact Analysis
The Preliminary Regulatory Impact Analysis describing the options
considered in developing this proposed rule and the impact of the
implementation of each option is available on request from Craig
Jagger, Grains Analysis Division, ASCS, P.O. Box 2415, Washington, DC
20013-2415; phone 202-720-4418. The analysis can be summarized as
follows:
The North American Free Trade Agreement Implementation Act requires
that end-use certificates be established for wheat and barley imported
into the U.S. from any foreign country that requires end-use
certificates for imports from the U.S. Currently, Canada is the only
such country. Three options are considered for the implementation of
end-use certificates:
Option 1: Border Certificate. Importers would file these
certificates to show the intended use of the grain. No additional
reporting or storage and handling requirements would apply.
Option 2: Identity Preserve and Track Commingled Grain.
Certificates showing the intended use would accompany the grain to the
end user. Imported grain could be commingled with U.S.-origin grain and
the commingled grain would be treated as imported grain that would have
to be stored separately from 100-percent U.S.-origin grain. Holders of
grain would file quarterly reports with USDA.
Option 3: Identity Preserve and Track Imported Grain. Certificates
showing the in ended use would accompany the grain to the end user.
Imported grain would not be allowed to be commingled with U.S.-origin
grain. Imported grain would be identity preserved and holders of the
grain would file quarterly reports with USDA. This option most closely
matches the Canadian system.
The impacts of the options considered depend on import levels, the
number of certificates issued, possible changes in import practices and
the proportion of imported grain that is already identity preserved.
Impacts would result from compliance costs for certificate filing,
quarterly reporting, and storage and handling costs needed for identity
preservation. Market impacts would result from reduced imports and
higher domestic market prices. Because of differences among warehouses
in storage capacity and involvement in government export assistance
programs, it is not clear whether, in practice, costs would be higher
or lower under Option 2 rather than Option 3 so costs are assumed to be
similar under the two options. The potential impacts of the end-use
certificate options considered are summarized below:
----------------------------------------------------------------------------------------------------------------
Option 1 Option 2 or 3
----------------------------------------------------------------------------------------------------------------
Compliance Costs:
Certificate Filing.................... $35,775 to $143,000.............. $4,450 to $143,000.
Quarterly Reporting................... ................................. $39,000 to $117,000.
Maximum Storage and Handling.......... ................................. $800,000 to $3,900,000.
Market Impacts: ($ Million)
Producer Income....................... ................................. 12.5.
Program Costs......................... ................................. -46.5.
Buyers' Loss \1\...................... ................................. -62.5.
----------------------------------------------------------------------------------------------------------------
\1\Buyers' Loss results from buyers purchasing less grain at higher prices.
Reduced program costs and higher producer income would almost
offset the increased costs to buyers, for a net impact for Options 2
and 3 of about $3.5 million.
An Initial Regulatory Flexibility Analysis indicates that the
compliance requirements of the program will disproportionately affect
small entities. Option 1 would have the least impact because it does
not require identity preservation.
Regulatory Flexibility Act
It has been determined under the Regulatory Flexibility Act that
this proposed rule will have an adverse effect on a substantial number
of small businesses. The analysis discussing these impacts is available
on request from Craig Jagger, at the address and telephone number noted
above. The analysis can be summarized as follows:
Warehousemen with average annual receipts of $12.5 million or less
are considered small entities. Warehousemen in the states of Montana,
North Dakota, South Dakota, Washington, Idaho, and Minnesota are most
apt to be affected by an end-use certificate program. About 85 percent
of the warehousemen located in these states are estimated to be small
warehousemen. Of all small warehousemen, only those who import Canadian
grain would be directly affected by an end-use certificate program.
Because small warehousemen are likely to have a disproportionate
share of truck-delivered imports and each entry would require an end-
use certificate, small warehousemen will likely need to file more end-
use certificates than large importers under all options considered.
Because small warehousemen can be expected to have fewer separate
storage and handling facilities and because they are less likely to be
already identity preserving imported grain, costs of identity
preservation under Options 2 and 3 will likely also affect a
disproportionately large share of small warehousemen. And if identity-
preservation requirements under Options 2 and 3 reduce the quantity of
grain imported, the resulting reduction in storage, handling, and
merchandising income will likely be felt most heavily by small
warehousemen.
Background
This proposed rule establishes a new 7 CFR part 782 to set forth
regulations with respect to a U.S. end-use certificate program. Section
321(f) of the Act established an end-use certificate requirement for
imports into the U.S. of wheat and barley from any foreign country or
instrumentality that as of April 8, 1994, requires end-use certificates
for imports of U.S.-produced wheat or barley, respectively. Canada
currently is the only foreign country or instrumentality that requires
such certificates. The Act is not otherwise specific regarding the type
of end-use certificate program to be implemented or the particular
information to be collected.
A notice requesting comments on the implementation of an end-use
certificate program was published on April 13, 1994, at 59 FR 17495.
The notice:
(1) Compared the U.S. and Canadian marketing systems,
(2) Described the Canadian end-use system,
(3) Identified three basic alternatives that ASCS could consider in
implementing an end-use certificate program, and
(4) Described current rules and policies used by ASCS to procure
U.S.-produced commodities for donation or sale under domestic and
export food assistance programs.
Forty-one comments were received in response to the notice
requesting comments.
All 41 respondents commented on one or more of the three basic
alternatives that ASCS could consider in implementing an end-use
certificate program. The key issue separating the alternatives involves
the issue of commingling vs. separate storage (i.e., identity
preservation) of Canadian and U.S.-produced grain. In brief, the
alternatives described in the notice are as follows:
(1) Allow commingling of Canadian and U.S. grain. Require that a
certificate which sets forth all relevant information be collected at
the U.S. border on imported grain. Continue (or modify) current rules
and policies used by ASCS to procure U.S.-produced commodities for U.S.
Government-assisted programs;
(2) Allow commingling of Canadian and U.S. grain. Require that such
commingled grain be stored separately from U.S.-origin grain until
delivered to the end-user; or
(3) Prohibit commingling of Canadian and U.S. grain. Require that
Canadian grain be stored separately from U.S.- origin grain until
delivered to the end-user.
Of 41 respondents, 34 respondents recommended that ASCS adopt
alternative 3, which would prohibit the commingling of Canadian and
U.S. grain. Three respondents recommended adoption of either
alternative 2 or 3, but not alternative 1; two respondents recommended
adoption of alternative 1; and two respondents did not recommend
adoption of one alternative over another.
After full consideration of all comments, this rule proposes to
adopt a program similar to the actions now taken by Canada with respect
to imports of U.S. wheat and barley. Therefore, this proposed rule
would adopt alternative 3, requiring importers of Canadian wheat and
barley to store such imported grain separately from U.S.-produced grain
until delivered to the end-user. Presently only Canada requires end-use
certificates on U.S. grain entering that country. Therefore, this
requirement by the U.S. would be imposed only on imports of wheat and
barley originating in Canada. Although ASCS would prefer to adopt its
current rules and policies used to procure commodities for donation or
sale under the Food for Progress Program; programs authorized by Titles
II and III of Pub. L. 83-480; and foreign food assistance programs
authorized by section 416(b) of the Agricultural Act of 1949, and
amended, as well as for domestic food assistance programs (i.e., the
physical commingling of U.S.-produced grain with non-U.S.-produced
grain is allowed, provided that at the time of delivery to the
Commodity Credit Corporation (CCC) the grain merchant has a sufficient
quantity and quality of U.S.-produced grain available at the location
where loading occurs to account for the grain sold to CCC and upon
delivery to CCC such U.S. origin stocks are reduced by the quantity
delivered to CCC), the Statement of Administrative Action approved by
Congress with the Act states that the purpose of the U.S. end-use
requirement is to ensure that foreign agricultural commodities do not
benefit from U.S. export programs.
Accordingly, in addition to the identity preservation requirement,
this proposed rule would require importers to complete form ASCS-750,
End-Use Certificate for Grain, for each entry of Canadian wheat and
barley, and to submit the certificate to the Kansas City Commodity
Office (KCCO), ASCS, within 10 days from the date of entry.
These regulations allow the importation of Canadian wheat and
barley for purposes of resale by the importer.
Information collected on the certificate would include:
(1) Name, address, and telephone number of the importer,
(2) Commodity and the class of such commodity being imported,
(3) Intended use of the commodity, including resale,
(4) Quantity imported, in net metric tons, rounded to the nearest
hundredth of a metric ton,
(5) Storage location of the commodity,
(6) Name, address, and telephone number of the end-user, if known,
(7) Mode of transportation and name of the transportation company
used to import the commodity, and
(8) A certification.
In addition to the information provided by the importer, the
Commissioner of Customs would assist ASCS in administering an end-use
certificate program by informing KCCO when Canadian wheat and barley is
imported into the U.S.
This proposed rule would make the importer responsible for ensuring
that all applicable end-users and subsequent buyers are informed that
the commodity being purchased originated in Canada. The importer must
inform end-users, in writing, that the imported commodity must not be
used for any purpose other than the use specified on the end-use
certificate. The importer must provide the end-user with a photocopy of
the end-use certificate. If the commodity is intended for resale, any
sales contracts entered into between the importer and a subsequent
buyer must contain terms that notify the subsequent buyer that:
(1) The commodity being purchased originated in Canada;
(2) The commodity being purchased is deemed ineligible for use
under CCC and U.S. Department of Agriculture-assisted export programs;
(3) The subsequent buyer shall preserve, on an origin-basis, the
identity of the commodity being purchased;
(4) The commodity may not be commingled or blended with U.S.-
produced commodities until such time as the commodity is delivered to
an end-user;
(5) The end-user or subsequent buyer must file quarterly reports as
described below; and
(6) Any sales contracts entered into between any subsequent buyers
must contain the same terms specified herewith.
The importer must provide the subsequent buyer with a copy of the end-
use certificate.
This proposed rule would also require the importer to submit to
KCCO, within 10 workdays after delivery of the commodity to the end-
user, a copy of the bill of lading acknowledging receipt of the
commodity by the end-user and the date the commodity was received at
the end-user's facility. If the commodity is imported for purposes of
resale, the importer must submit to KCCO, within 10 workdays from date
of sale, its subsequent buyer's name, address, and telephone number,
and the quantity sold.
This proposed rule would require end-users to report to KCCO the
status of the imported grain on form ASCS-751, End-Use Certificate for
Grain Quarterly Report, until the commodity is fully used. Subsequent
buyers would be required to report to KCCO the status of the imported
grain on form ASCS-751, End-Use Certificate for Grain Quarterly Report,
until the commodity is resold.
Information called for on the quarterly report would include:
(1) The name, address, and telephone number of the end-user or
subsequent buyer,
(2) The name and address of the importer,
(3) The End-Use Certificate for Grain serial number,
(4) The commodity and class of such commodity,
(5) The storage location of the commodity,
(6) The date the commodity was received at the end-user's or
subsequent buyer's facility,
(7) The quantity of the commodity received, in net metric tons,
rounded to the nearest hundredth of a metric ton,
(8) The quantity of the commodity used by the end-user or sold to a
subsequent buyer,
(9) The quantity remaining, and
(10) A certification.
Quarterly reports must be received in KCCO within 15 workdays
following full consumption or resale of the commodity. For partial
resales or partial consumption, submit form ASCS-751 to KCCO within 15
workdays following:
(1) March 31,
(2) June 30,
(3) September 30, and
(4) December 31.
Forms ASCS-750, End-Use Certificate for Grain, and ASCS-751, End-
Use Certificate for Grain Quarterly Report, may be obtained from KCCO.
This proposed rule also incorporates the statutory requirement that it
is a violation of 18 U.S.C. 1001 for an entity to engage in fraud with
respect to or knowingly violate the provisions set forth in the
regulations.
List of Subjects in 7 CFR Part 782
Administrative practice and procedure, Barley, Reporting and
recordkeeping requirements, Wheat.
It is proposed that subchapter D, chapter VII of title 7 of the
Code of Federal Regulations be amended by adding part 782 to read as
follows:
PART 782--END-USE CERTIFICATE PROGRAM
Subpart A--General
Sec.
782.1 Basis and purpose.
782.2 Definitions.
782.3 Administration.
782.4 OMB control numbers assigned pursuant to the Paperwork
Reduction Act.
Subpart B--Implementation of End-Use Certificate Program
782.10 Identification of commodities subject to end-use certificate
regulations.
782.11 Extent to which commodities are subject to end-use
certificate regulations.
782.12 Filing ASCS-750, End-Use Certificate for Grain.
782.13 Importer responsibilities.
782.14 Identity preservation.
782.15 Filing ASCS-751, End-Use Certificate for Grain Quarterly
Report.
782.16 Intended use.
782.17 Commodities purchased for resale.
782.18 Penalty for noncompliance.
Subpart C--Records and Reports
782.20 Importer records and reports.
782.21 End-user records and reports.
782.22 Subsequent buyer records and reports.
782.23 Failure to file end-use certificates or quarterly reports.
782.24 Recordkeeping and examination of records.
782.25 Length of time records are to be kept.
Authority: Section 321(f) of Pub. L. 103-182; 107 Stat. 2057 (19
U.S.C. 3391(f)).
Subpart A--General
Sec. 782.1 Basis and purpose.
The regulations contained in this part are issued pursuant to and
in accordance with Section 321(f) of the North American Free Trade
Agreement Implementation Act. These regulations govern the
establishment of the end-use certificate program, the completion of
end-use certificates, the identification of commodities requiring end-
use certificates, the submission of reports, and the keeping of records
and making of reports incident thereto.
Sec. 782.2 Definitions.
As used in this part and in all instructions, forms, and documents
in connection therewith, the words and phrases defined in this section
shall have the meanings herein assigned to them unless the context or
subject matter requires otherwise. References contained herein to other
parts of this chapter or title shall be construed as references to such
parts and amendments now in effect or later issued.
Date of entry means the effective time of entry of the merchandise,
as defined in 19 CFR part 101.
End-user means the entity that uses the commodities specified in
Sec. 782.10(b) for milling, brewing, malting, distilling,
manufacturing, or other use, except resale, as determined by ASCS.
Entity means a legal entity including, but not limited to, an
individual, joint stock company, corporation, association, partnership,
cooperative, trust, and estate.
Entry means that documentation required by 19 CFR part 142 to be
filed with the appropriate U.S. Customs officer to secure the release
of imported merchandise from U.S. Customs custody, or the act of filing
that documentation.
Importer means the person primarily liable for the payment of any
duties on the merchandise, or an authorized agent acting on his behalf.
The importer may be:
(1) The consignee, or
(2) The importer of record, or
(3) The actual owner of the merchandise, if an actual owner's
declaration and superseding bond has been filed in accordance with 19
C.F.R. part 141, or
(4) The transferee of the merchandise, if the right to withdraw
merchandise in a bonded warehouse has been transferred in accordance
with 19 CFR part 144.
Intended use means the purpose for which the commodity is being
imported, including milling, brewing, malting, distilling,
manufacturing, or other use, including resale.
Metric ton means a unit of measure that equals 2204.6 pounds.
Origin basis is defined in Title 19, U.S.C.
Subsequent buyer means an entity other than the end-user that
purchases a commodity from an importer or subsequent buyer with the
intent to resell the commodity.
Sec. 782.3 Administration.
(a) The end-use certificate program will be administered under the
general supervision and direction of the Administrator, Agricultural
Stabilization and Conservation Service (ASCS), U.S. Department of
Agriculture (USDA), through the Office of the Deputy Administrator,
Commodity Operations (DACO), ASCS, Washington, D.C., and the Kansas
City Commodity Office (KCCO), ASCS, Kansas City, MO, in coordination
with the Commissioner of Customs.
(b) DACO, or a designee, may waive or modify deadlines and other
program requirements in cases where failure to meet requirements does
not adversely affect the enforcement of the end-use certificate
program.
Sec. 782.4 OMB control numbers assigned pursuant to the Paperwork
Reduction Act.
The information collection requirements contained in these
regulations (7 CFR part 782) have been submitted to the Office of
Management and Budget (OMB) in accordance with the provisions of 44
U.S.C. 35 and will be assigned an OMB control number.
Subpart B--Implementation of the End-Use Certificate Program
Sec. 782.10 Identification of commodities subject to end-use
certificate regulations.
(a) These regulations are applicable to wheat and barley,
respectively, imported into the U.S. from any foreign country or
instrumentality that as of April 8, 1994, requires end-use certificates
for imports of U.S.-produced wheat or barley.
(b) The following foreign countries, instrumentalities, and
commodities are affected by these regulations:
(1) Wheat originating in Canada.
(2) Barley originating in Canada.
(c) The commodities specified in paragraph (b) of this section are
ineligible for use under Commodity Credit Corporation (CCC) and USDA-
assisted export programs.
Sec. 782.11 Extent to which commodities are subject to end-use
certificate regulations.
(a) The provisions of these regulations apply to all commodities
specified in Sec. 782.10(b).
(b) To the extent that the foreign countries or instrumentalities
specified in Sec. 782.10(b) eliminate the requirement for end-use
certificates on imports from the U.S., the provisions of these
regulations shall be suspended 30 calendar days following the date the
foreign country or instrumentality eliminates its end-use certificate
requirement.
Sec. 782.12 Filing ASCS-750, End-Use Certificate for Grain.
(a) Each entity which imports any of the commodities specified in
Sec. 782.10(b) shall, for each entry, obtain form ASCS-750, End-Use
Certificate for Grain, from KCCO, P.O. Box 419205, Kansas City, MO
64141-6205, and submit the original form ASCS-750 to KCCO within 10
days from the date of entry. Each form ASCS-750 shall set forth, among
other things, the:
(1) Name, address, and telephone number of the importer,
(2) Commodity and class of such commodity that is being imported,
(3) Intended use of the commodity, including resale,
(4) Quantity imported, in net metric tons, rounded to the nearest
hundredth of a metric ton,
(5) Storage location of the commodity,
(6) Name, address, and telephone number of the end-user, if known,
(7) Mode of transportation and the name of the transportation
company used to import the commodity, and
(8) A certification.
(b) The original form ASCS-750 and one copy of form ASCS-750 shall
be signed and dated by the importer.
(c) Distribution of form ASCS-750 will be as follows:
(1) The original shall be forwarded to KCCO, P.O. Box 419205,
Kansas City, MO 64141-6205, by the importer,
(2) One copy shall be retained by the importer,
(3) The importer shall provide a photocopy to the end-user, or if
the commodity is purchased for purposes of resale, the subsequent
buyer(s).
(d) The completion and filing of an end-use certificate does not
relieve the importer of other legal requirements pertaining to the
importation, such as those imposed by other U.S. agencies.
Sec. 782.13 Importer responsibilities.
The importer shall:
(a) Inform the end-user, in writing, that the imported commodity
shall not be used for any purpose other than the use specified on the
end-use certificate.
(b) If the commodity is imported for purposes of resale,
incorporate the provisions of Sec. 782.17 (b) and (c) into the sales
contract entered into between the importer and subsequent buyer,
(c) Submit to KCCO, within 10 workdays:
(1) After delivery of the commodity to the end-user, a bill of
lading acknowledging receipt of the commodity by the end-user and the
date the commodity was received at the end-user's facility.
(2) If the commodity is imported for purposes of resale, from the
date of sale, its subsequent buyer's name, address, and telephone
number, and the quantity sold.
Sec. 782.14 Identity preservation.
(a) The importer and all subsequent buyers of the imported
commodity shall preserve, on an origin-basis, the identity of the
commodities specified in Sec. 782.10(b) and may not commingle or blend
them with U.S.-produced commodities until such time as the imported
commodity is delivered to an end-user.
(b) Failure to meet the requirements in paragraph (a) of this
section shall constitute noncompliance by the importer or subsequent
buyer for the purposes of this part.
Sec. 782.15 Filing ASCS-751, End-Use Certificate for Grain Quarterly
Report.
(a) For purposes of providing information relating to the
disposition of commodities specified in Sec. 728.10(b), a form ASCS-
751, End-Use Certificate for Grain Quarterly Report, shall be filed
with KCCO by each:
(1) Importer, if the importer has control of the commodity on the
date specified in paragraph (c) of this section.
(2) End-user.
(3) Subsequent buyer.
(b) The information required on form ASCS-751 is as follows:
(1) The name, address, and telephone number of the end-user or
subsequent buyer,
(2) The name and address of the importer, if known,
(3) The End-Use Certificate for Grain serial number,
(4) The commodity and class of such commodity,
(5) The storage location of the commodity,
(6) The date the commodity was received at the end-user's or
subsequent buyer's facility,
(7) The quantity of the commodity received, in net metric tons,
rounded to the nearest hundredth of a metric ton,
(8) The quantity of the commodity used by the end-user or sold to a
subsequent buyer,
(9) The quantity remaining, and
(10) A certification.
(c) End-users and subsequent buyers shall submit form ASCS-751 to
KCCO within 15 workdays following full consumption or resale of the
commodity specified on the ASCS-750. For partial resales or partial
consumption, submit form ASCS-751 to KCCO within 15 workdays following:
(1) March 31,
(2) June 30,
(3) September 30, and
(4) December 31.
(d) The end-user shall continue to submit form ASCS-751 to KCCO
until the commodity has been utilized in accordance with these
regulations.
(e) A subsequent buyer shall continue to submit form ASCS-751 to
KCCO until the commodity has been resold.
(f) Importers shall submit form ASCS-751 to KCCO within 15 workdays
following March 31, June 30, September 30, and December 31, if the
importer has control of the imported commodity on these dates.
Sec. 782.16 Intended use.
(a) No entity shall knowingly use any commodities specified in
Sec. 782.10(b) for any use other than the use specified on the
applicable form ASCS-750.
(b) If the use specified on the applicable form ASCS-750 is
``Resale'', the imported commodity may continue to be resold until
delivered to an end-user, at which time the end-user must use such
commodity for one or more of the intended uses, except resale.
Sec. 782.17 Commodities purchased for resale.
(a) This section applies to an importer or subsequent buyer who
imports or purchases a commodity specified in Sec. 782.10(b) for the
purpose of reselling the commodity.
(b) Any sales contracts entered into between the importer and a
subsequent buyer, or a contract entered into between subsequent buyers,
must contain terms that notify the subsequent buyer that:
(1) The commodity being purchased originated in Canada,
(2) The commodity being purchased is deemed ineligible for use
under CCC and USDA-assisted export programs,
(3) The subsequent buyer shall preserve, on an origin-basis, the
identity of the commodity being purchased,
(4) The commodity may not be commingled or blended with U.S.-
produced commodities until such time as the commodity is delivered to
an end-user, and
(5) The subsequent buyer is responsible for filing form ASCS-751 in
accordance with Sec. 782.15.
(c) The importer or subsequent buyer shall submit to KCCO, within
10 workdays from the date of sale, its subsequent buyer's name,
address, and telephone number, and the quantity sold.
(d) The subsequent buyer shall provide its purchaser with a
photocopy of the form ASCS-750 submitted to KCCO by the importer in
accordance with Sec. 782.12(a).
Sec. 782.18 Penalty for noncompliance.
It shall be a violation of 18 U.S.C. 1001, which provides for a
fine of not more than $10,000 or imprisonment for not more than 5
years, or both, for any entity to engage in fraud with respect to or
knowingly violate the provisions set forth in this part.
Subpart C--Records and Reports
Sec. 782.20 Importer records and reports.
(a) The importer shall retain a copy of each form:
(1) ASCS-750, End-Use Certificate for Grain, that is submitted to
KCCO in accordance with Sec. 782.12(a).
(2) ASCS-751, End-Use Certificate for Grain Quarterly Report, that
is submitted to KCCO in accordance with Sec. 782.15(a)(1).
(b) The importer shall retain a copy of:
(1) Each bill of lading that is filed with KCCO in accordance with
Sec. 782.13(c)(1).
(2) The information with respect to subsequent buyers provided to
KCCO in accordance with Sec. 782.13(c)(2).
(c) The importer shall maintain records to verify that the
commodity specified on the end-use certificate was identity-preserved
until such time as the imported commodity was delivered to the end-user
or a subsequent buyer.
(d) Copies of the documents, information, and records required in
paragraphs (a), (b), and (c) of this section shall be kept on file at
the importer's headquarters office or other location designated by the
importer for the period specified in Sec. 782.25.
Sec. 782.21 End-user records and reports.
(a) The end-user shall retain a copy of each form ASCS-751, End-Use
Certificate for Grain Quarterly Report, that is filed with KCCO in
accordance with Sec. 782.15(a)(2).
(b) The end-user shall retain a copy of each form ASCS-750, End-Use
Certificate for Grain, and written notification on the intended use of
the commodity provided to the end-user by the importer in accordance
with Sec. 782.12(c)(3).
(c) Copies of the documents required in paragraphs (a) and (b) of
this section shall be kept on file at the end-user's headquarters
office or other location designated by the end-user for the period
specified in Sec. 782.25.
Sec. 782.22 Subsequent buyer records and reports.
(a) The subsequent buyer shall retain a copy of each form ASCS-751,
End-Use Certificate for Grain Quarterly Report, that is filed with KCCO
in accordance with Sec. 782.15(a)(3).
(b) The subsequent buyer shall retain a copy of each form ASCS-750,
End-Use Certificate for Grain, provided to the subsequent buyer in
accordance with Secs. 782.12(c)(3) or 782.17(d).
(c) The subsequent buyer shall retain a copy of the sales contract
which contains the terms of Sec. 782.17 (b) and (c) when the imported
commodity is resold.
(d) The subsequent buyer shall maintain records to verify that the
commodity specified on the end-use certificate was identity-preserved
during the time that the subsequent buyer maintained control of the
imported commodity.
(e) Copies of the documents and records required in paragraphs (a)
through (d) of this section shall be kept on file at the subsequent
buyer's headquarters office or other location designated by the
subsequent buyer for the period specified in Sec. 782.25.
Sec. 782.23 Failure to file end-use certificates or quarterly reports.
Failure by importers, end-users, and subsequent buyers to file form
ASCS-750, End-Use Certificate for Grain, and form ASCS-751, End-Use
Certificate for Grain Quarterly Report, as applicable, and retain or
maintain related copies and records shall constitute noncompliance for
the purposes of Sec. 782.18.
Sec. 782.24 Recordkeeping and examination of records.
(a) Examination. For the purpose of verifying compliance with the
requirements of this part, each importer, end-user, and subsequent
buyer shall make available at one place at all reasonable times for
examination by representatives of USDA, all books, papers, records,
bills of lading, contracts, scale tickets, settlement sheets, invoices,
written price quotations, or other documents related to the importation
of the commodities specified in Sec. 782.10(b) that are within the
control of such entity.
(b) Orderly retention of records. To facilitate examination and
verification of the records and reports required by this part, copies
of form ASCS-750, End-Use Certificate for Grain, shall be filed in
numerical order, and copies of form ASCS-751, End-Use Certificate for
Grain Quarterly Report, shall be filed in chronological order.
Sec. 782.25 Length of time records are to be kept.
The records required to be kept under this part shall be retained
for 3 years following the filing date of the applicable record. Records
shall be kept for such longer period of time as may be requested in
writing by USDA representatives.
[Note: The following appendix forms will not appear in the Code
of Federal Regulations.]
Signed at Washington, DC on October 14, 1994.
Alan King,
Acting Administrator, Agricultural Stabilization and Conservation
Service.
BILLING CODE 3410-05-P
TP20OC94.001
BILLING CODE 3410-05-C
General Information
The United States Department of Agriculture (USDA)
provides end-use certificates for persons requiring these
certificates for the importation of Canadian-produced wheat and
barley into the United States.
Regulations governing the End-Use Certificate Program
can be found at 7 CFR Part 782.
Wheat and barley covered by an end-use certificate is
not eligible for use under CCC and USDA-assisted export programs.
ASCS-750, End-Use Certificates are required for each
entry of Canadian-produced wheat and barley, and must be submitted
to the Kansas City Commodity Office within 10 days from the date of
entry.
Copies of forms ASCS-750 (End-Use Certificate for
Grain) and ASCS-751 (End-Use Certificate for Grain Quarterly Report)
can be obtained from the Kansas City Commodity Office, P.O. Box
419205, Kansas City, MO 64141-6205
For grain delivered to an end-user, the importer shall
provide the Kansas City Commodity Office, within 10 workdays of
delivery of the commodity to the end-user, a copy of the bill of
lading on which the end-user's authorized representative has
acknowledged receipt of the grain, and the date of receipt of the
grain at the end-user's facility.
For grain sold to a subsequent buyer, the importer
shall provide the Kansas City Commodity Office, within 10 workdays
of the date of sale, the subsequent buyer's name, address, telephone
number, and the quantity sold.
Importers, end-users and subsequent buyers are
responsible for providing quarterly reports to the Kansas City
Commodity Office until the grain is either resold or fully consumed
at the end-user's facility.
Follow these instructions when completing this form.
Only those items requiring explanation are described below:
Item 4--Enter the intended use by the end-user, if known. If
``Other'' is marked, provide the intended use in the space provided.
Item 7--If the commodity will be held in storage to be sold at a
later date, enter the storage location.
Items 8 and 9--If known at the time of importation, enter the
end-user or subsequent buyer's name, address and telephone number.
Otherwise, leave blank.
BILLING CODE 3410-05-P-M
TP20OC94.002
[FR Doc. 94-25961 Filed 10-17-94; 1:50 pm]
BILLING CODE 3410-05-C
