80 FR 19059 - 2015 Rates Charged for AMS Services

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 68 (April 9, 2015)

Page Range19059-19064
FR Document2015-08162

The Agricultural Marketing Service (AMS) is announcing the 2015 rates it will charge voluntary grading, inspection, certification, auditing and laboratory services for a variety of agricultural commodities including meat and poultry, fruits and vegetables, eggs, dairy products, and cotton and tobacco. The 2015 regular, overtime, holiday, and laboratory services rates will be applied at the beginning of the crop year, fiscal year or as required by law (June 1 for cotton programs) depending on the commodity. This action established the rates for user-funded programs based on costs incurred by AMS.

Federal Register, Volume 80 Issue 68 (Thursday, April 9, 2015)
[Federal Register Volume 80, Number 68 (Thursday, April 9, 2015)]
[Notices]
[Pages 19059-19064]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-08162]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Document No. AMS-LPS-15-0001]


2015 Rates Charged for AMS Services

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Agricultural Marketing Service (AMS) is announcing the 
2015

[[Page 19060]]

rates it will charge voluntary grading, inspection, certification, 
auditing and laboratory services for a variety of agricultural 
commodities including meat and poultry, fruits and vegetables, eggs, 
dairy products, and cotton and tobacco. The 2015 regular, overtime, 
holiday, and laboratory services rates will be applied at the beginning 
of the crop year, fiscal year or as required by law (June 1 for cotton 
programs) depending on the commodity. This action established the rates 
for user-funded programs based on costs incurred by AMS.

DATES: April 10, 2015.

FOR FURTHER INFORMATION CONTACT: Sonia Jimenez, AMS, U.S. Department of 
Agriculture, Room 3069-S, 1400 Independence Ave. SW., Washington, DC 
20250; telephone (202) 720-5115, fax (202) 720-8477; email 
[email protected].

SUPPLEMENTARY INFORMATION: The Agricultural Marketing Act of 1946, as 
amended, (AMA)(7 U.S.C. 1621-1627), provides for the collection of fees 
to cover costs of various inspection, grading, certification or 
auditing services covering many agricultural commodities and products. 
The AMA also provides for the recovery of costs incurred in providing 
laboratory services. The Cotton Statistics and Estimates Act (7 U.S.C. 
471-476) and the U.S. Cotton Standards Act (7 U.S.C. 51-65) provide for 
classification of cotton and development of cotton standards materials 
necessary for cotton classification. The Cotton Futures Act (7 U.S.C. 
15b) provides for futures certification services and the Tobacco 
Inspection Act (7 U.S.C. 511-511s) provides for tobacco inspection and 
grading. These Acts also provide for the recovery of costs associated 
with these services.
    On November 13, 2014, The Department of Agriculture (Department) 
published in the Federal Register a final rule that established 
standardized formulas for calculating the fees charged by AMS user-
funded programs (79 FR 67313).
    This notice announces the fee rates for voluntary grading, 
inspection, certification, auditing and laboratory services for a 
variety of agricultural commodities including meat and poultry, fruits 
and vegetables, eggs, dairy products, and cotton and tobacco on a per-
hour rate and, in some instances, the equivalent per-unit cost. The 
per-unit cost is provided to facilitate understanding of the costs 
associated with the service to the industries that historically used 
unit-cost basis for payment. The fee rates will be effective at the 
beginning of the fiscal year, crop year, or as required by specific 
laws (June 1 for cotton programs).
    The rates reflect direct and indirect costs of providing services. 
Direct costs include the cost of salaries, employee benefits, and if 
applicable, travel and some operating costs. Indirect or overhead costs 
include the cost of Program and Agency activities supporting the 
services provided to the industry.
    These services include the grading, inspection or certification of 
quality factors in accordance with established U.S. Grade Standards; 
audits or accreditation according to International Organization for 
Standardization (ISO) standards and/or Hazard Analysis and Critical 
Control Point (HACCP) principles; and other marketing claims. The 
quality grades serve as a basis for market prices and reflect the value 
of agricultural commodities to both producers and consumers. AMS' 
grading and quality verification and certification, audit and 
accreditation, plant process and equipment verification, and laboratory 
approval services are voluntary tools paid by the users on a fee-for-
service basis. The agriculture industry can use these tools to promote 
and communicate the quality of agricultural commodities to consumers. 
Laboratory services are provided for analytic testing, including but 
not limited to chemical, microbiological, biomolecular, and physical 
analyses. AMS is required by statute to recover the costs associated 
with these services.
    As required by the Cotton Statistics and Estimates Act (7 U.S.C. 
471-476), consultations regarding the establishment of the fee for 
cotton classification with U.S. cotton industry representatives were 
held between January 2014 and the present. Representatives of all 
segments of the cotton industry, including producers, ginners, bale 
storage facility operators, merchants, cooperatives, and textile 
manufacturers were informed of the fees during various industry-
sponsored forums.

Rates Calculations

    AMS calculated the rate for services, per hour per program employee 
using the following formulas (a per-unit base is included for programs 
that charge services based on a per-unit base):
    (1) Regular rate. The total AMS grading, inspection, certification, 
classification, audit, or laboratory service program personnel direct 
pay divided by direct hours for the previous year, which is then 
multiplied by the next year's percentage of cost of living increase, 
plus the benefits rate, plus the operating rate, plus the allowance for 
bad debt rate. If applicable, travel expenses may also be added to the 
cost of providing the service.
    (2) Overtime rate. The total AMS grading, inspection, 
certification, classification, audit, or laboratory service program 
personnel direct pay divided by direct hours, which is then multiplied 
by the next year's percentage of cost of living increase and then 
multiplied by 1.5, plus the benefits rate, plus the operating rate, 
plus an allowance for bad debt. If applicable, travel expenses may also 
be added to the cost of providing the service.
    (3) Holiday rate. The total AMS grading, inspection, certification, 
classification, audit, or laboratory service program personnel direct 
pay divided by direct hours, which is then multiplied by the next 
year's percentage of cost of living increase and then multiplied by 2, 
plus benefits rate, plus the operating rate, plus an allowance for bad 
debt. If applicable, travel expenses may also be added to the cost of 
providing the service.
    All rates are per-hour except when a per-unit cost is noted. The 
specific amounts in each rate calculation are available upon request 
from the specific AMS program.

                                                   2015 Rates
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
                                                   Cotton Fees
----------------------------------------------------------------------------------------------------------------
7 CFR Part 27--Cotton Classification Under Cotton Futures Legislation
    Subpart A--Regulations; Sec.  Sec.   27.80-27.90 Costs of Classifications and Micronaire
----------------------------------------------------------------------------------------------------------------

[[Page 19061]]

 
                                             Cotton Standardization
----------------------------------------------------------------------------------------------------------------
                                     Regular      Overtime     Holiday      Includes           Start date
                                                                          travel costs
                                                                             in rate
----------------------------------------------------------------------------------------------------------------
Certification for Futures                        $3.50/bale                         X   June 1, 2015.
 Contract (Grading services for
 samples submitted by CCC-
 licensed samplers).
----------------------------------------------------------------------------------------------------------------
Transfer of Certification Data to   $0.20/bale or $5.00 per page minimum            X   June 1, 2015.
 New Owner or Certified Warehouse
 (Electronic transfer performed).
----------------------------------------------------------------------------------------------------------------
7 CFR Part 28--Cotton Classing, Testing, and Standards
    Subpart A--Regulations Under the United States Cotton Standards Act; Sec.  Sec.   28.115-28.126 Fees and
     Costs
    Subpart D--Cotton Classification and Market News Service for Producers; Sec.   28.909 Costs; Sec.   28.910
     Classification of Samples and Issuance of Classification Data; Sec.   28.911 Review Classification.
----------------------------------------------------------------------------------------------------------------
                                                 Cotton Grading
----------------------------------------------------------------------------------------------------------------
Form 1: Grading Services for                     $2.20/bale                         X   June 1, 2015.
 Producers (submitted by licensed
 sampler).
----------------------------------------------------------------------------------------------------------------
Form 1 Review (new sample                        $2.20/bale                         X   June 1, 2015.
 submitted by licensed sampler).
----------------------------------------------------------------------------------------------------------------
Form A Determinations (sample                    $2.00/bale                         X   June 1, 2015.
 submitted by licensed warehouse).
----------------------------------------------------------------------------------------------------------------
Form C Determinations (sample                    $2.00/bale               ............  June 1, 2015.
 submitted by non-licensed
 entity; bale sampled under USDA
 supervision).
----------------------------------------------------------------------------------------------------------------
Form D Determination (sample        Instrument and Manual Grade: $2.00/             X   June 1, 2015.
 submitted by owner or agent;       bale; Instrument Grade Only: $1.75/
 classification represents sample                   bale
 only).
----------------------------------------------------------------------------------------------------------------
Foreign Growth Classification       Instrument and Manual Grade: $2.00/             X   June 1, 2015.
 (sample of foreign growth cotton   bale; Instrument Grade Only: $1.75/
 submitted by owner or agent;                       bale
 classification represents sample
 only).
----------------------------------------------------------------------------------------------------------------
Arbitration (comparison of a        Instrument and Manual Grade: $4.00/             X   June 1, 2015.
 sample to the official standards   bale; Instrument Grade Only: $2.70/
 or a sample type).                 bale; Manual Grade Only: $2.20/bale
----------------------------------------------------------------------------------------------------------------
Practical Cotton Classing Exam      Exam: $105/applicant; Reexamination:            X   June 1, 2015.
 (for non-USDA employees).                     $85/applicant
----------------------------------------------------------------------------------------------------------------
Special Sample Handling (return                 $0.50/sample                        X   June 1, 2015.
 of samples per request).
----------------------------------------------------------------------------------------------------------------
Electronic Copy of Classification   $0.05/bale ($5.00/month minimum with            X   June 1, 2015.
 Record.                                   any records received)
----------------------------------------------------------------------------------------------------------------
Form A Rewrite (reissuance of             $0.15/bale or $5.00/page                  X   June 1, 2015.
 Form 1, Form A, or Futures
 Certification data or
 combination).
----------------------------------------------------------------------------------------------------------------
Form R (reissuance of Form 1          $0.15/bale or $5.00/page minimum              X   June 1, 2015.
 classification only).
----------------------------------------------------------------------------------------------------------------
International Instrument Level                  $4.00/sample                        X   June 1, 2015.
 Assessment.
----------------------------------------------------------------------------------------------------------------
                                                   Dairy Fees
----------------------------------------------------------------------------------------------------------------
7 CFR Part 58--Grading and Inspection, General Specifications for Approved Plants and Standards for Grades of
 Dairy Products
    Subpart A--Regulations Governing the Inspection and Grading Services of Manufactured or Processed Dairy
     Products; Sec.  Sec.   58.38-58.46 Fees and Charges
----------------------------------------------------------------------------------------------------------------
Continuous Resident Grading             $76.00      $114.00      $152.00            X   Oct 1, 2015.
 Service.
----------------------------------------------------------------------------------------------------------------
Non-resident and Intermittent            82.00       123.00       164.00            X   Oct 1, 2015.
 Grading Service.
----------------------------------------------------------------------------------------------------------------
Non-resident Services 6 p.m.-6           90.20       135.30       180.40            X   Oct 1, 2015.
 a.m. (10 percent night
 differential).
----------------------------------------------------------------------------------------------------------------
State Graders....................        82.00       123.00       164.00            X   Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Equipment Review.................        82.00       123.00       164.00            X   Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Export Certificate Services......        82.00          N/A          N/A            X   Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Special Handling.................        41.00          N/A          N/A  ............  Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------

[[Page 19062]]

 
Fax Charge.......................         4.00          N/A          N/A  ............  Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Derogation Application...........       123.00          N/A          N/A  ............  Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
                                            Fruit and Vegetable Fees
----------------------------------------------------------------------------------------------------------------
7 CFR Part 51--Fresh Fruits, Vegetables and Other Products (Inspection, Certification, and Standards)
    Subpart A--Regulations; Sec.  Sec.   51.37-51.44 Schedule of Fees and Charges at Destination Markets Sec.
     51.45 Schedule of Fees and Charges at Shipping Point Areas
----------------------------------------------------------------------------------------------------------------
Quality and Condition Inspections             $151.00 per lot             ............  Oct 1, 2015.
 for Whole Lots.
----------------------------------------------------------------------------------------------------------------
Condition--Only Inspections for               $125.00 per lot             ............  Oct 1, 2015.
 Whole Lots.
----------------------------------------------------------------------------------------------------------------
Quality and Condition or                       $69.00 per lot             ............  Oct 1, 2015.
 Condition--Only Inspections for
 Additional Lots of the Same
 Product.
----------------------------------------------------------------------------------------------------------------
Dockside Inspections--Each                    $0.038 per pkg.             ............  Oct 1, 2015.
 package weighing <30 lbs.
----------------------------------------------------------------------------------------------------------------
Dockside Inspections--Each                    $0.059 per pkg.             ............  Oct 1, 2015.
 package weighing >30 lbs.
----------------------------------------------------------------------------------------------------------------
Charge per Individual Product for             $151.00 per lot             ............  Oct 1, 2015.
 Dockside Inspection.
----------------------------------------------------------------------------------------------------------------
Charge per Each Additional Lot of              $69.00 per lot             ............  Oct 1, 2015.
 the Same Product.
----------------------------------------------------------------------------------------------------------------
Inspections for All Hourly Work..       $74.00      $112.00      $148.00  ............  Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Audit Services...................                  $92.00                       \1\ X   Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
7 CFR Part 52--Processed Fruits and Vegetables, Processed Products Thereof, and Other Processed Food Products
    Subpart--Regulations Governing Inspection and Certification; Sec.  Sec.   52.41-52.51 Fees and Charges
----------------------------------------------------------------------------------------------------------------
Lot Inspections..................       $62.00       $93.00      $124.00            X   Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
In-plant Inspections Under Annual        49.00        73.50        98.00            X   Oct 1, 2015.
 Contract (year-round).
----------------------------------------------------------------------------------------------------------------
Additional Graders (in-plant) or         65.00        97.50       130.00            X   Oct 1, 2015.
 Less Than Year-Round.
----------------------------------------------------------------------------------------------------------------
Audit Services...................                  92.00                        \1\ X   Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
                                             Meat and Livestock Fees
----------------------------------------------------------------------------------------------------------------
7 CFR Part 54--Meats, Prepared Meats, and Meat Products (Grading, Certification, and Standards)
    Subpart A--Regulations; Sec.  Sec.   54.27-54.28 Charges for Service
----------------------------------------------------------------------------------------------------------------
Commitment Grading...............       $61.00       $78.00      $122.00            X   Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Non-commitment Grading...........        71.00        78.00       122.00  ............  Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Night Differential (6 p.m.-6             78.00          N/A       122.00  ............  Oct 1, 2015.
 a.m.).
----------------------------------------------------------------------------------------------------------------
7 CFR Part 62--Livestock, Meat and Other Agricultural Commodities (Quality Systems Verification Programs)
    Subpart A--Quality Systems Verification Definitions Sec.   62.300 Fees and Other Costs for Service
----------------------------------------------------------------------------------------------------------------
Auditing Activities..............                 $108.00                 ............  Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
7 CFR Part 75--Regulations for Inspection and Certification of Quality of Agricultural and Vegetable Seeds
----------------------------------------------------------------------------------------------------------------
    Sec.   75.41 General
----------------------------------------------------------------------------------------------------------------
Laboratory Testing...............       $52.00       $78.00      $104.00            X   Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Administrative Fee...............          $13.00 per certificate         ............  Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
                                                  Poultry Fees
----------------------------------------------------------------------------------------------------------------
7 CFR Part 56--Voluntary Grading of Shell Eggs
    Subpart A--Grading of Shell Eggs; Sec.  Sec.   56.45-56.54 Fees and Charges
7 CFR Part 70--Voluntary Grading of Poultry and Rabbit Products

[[Page 19063]]

 
    Subpart A--Grading of Poultry and Rabbit Products; Sec.  Sec.   70.70-70.78 Fees and Charges
----------------------------------------------------------------------------------------------------------------
Resident Service (in-plant)......   \2\ $42.68   \2\ $47.16   \2\ $67.28            X   Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Resident, Night Differential (6      \2\ 45.16    \2\ 49.60    \2\ 69.76            X   Oct 1, 2015.
 p.m.-6 a.m.).
----------------------------------------------------------------------------------------------------------------
Resident, Sunday Differential....    \2\ 48.80    \2\ 53.28          N/A            X   Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Resident, Sunday and Night           \2\ 51.28    \2\ 55.76          N/A            X   Oct 1, 2015.
 Differential.
----------------------------------------------------------------------------------------------------------------
Fee Service (non-scheduled)......        77.28        93.24       115.89  ............  Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Audit Service....................        89.20       116.08       139.89  ............  Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
                                           Science and Technology Fees
----------------------------------------------------------------------------------------------------------------
7 CFR Part 91--Services and General Information (Science and Technology)
    Subpart I--Fees and Charges; Sec.  Sec.   91.37--91.45
----------------------------------------------------------------------------------------------------------------
Laboratory Testing Services......       $88.00      $103.00      $118.00  ............  Oct 1, 2015.
----------------------------------------------------------------------------------------------------------------
Laboratory Approval Services \3\.       136.00       163.00       191.00            X   Jan 1, 2016.
----------------------------------------------------------------------------------------------------------------
                                                  Tobacco Fees
----------------------------------------------------------------------------------------------------------------
7 CFR Part 29--Tobacco Inspection
    Subpart A--Policy Statement and Regulations Governing the Extension of Tobacco Inspection and Price Support
     Services to New Markets and to Additional Sales on Designated Markets;
    Subpart B--Regulations; Sec.  Sec.   29.123-29.129 Fees and Charges; Sec.   29.500 Fees and charges for
     inspection and acceptance of imported tobacco
    Subpart F--Policy Statement and Regulations Governing the Identification and Certification of Non-quota
     Tobacco Produced and Marketed in Quota Area; Sec.   29.9251 Fees and Charges
----------------------------------------------------------------------------------------------------------------
Domestic Permissive Inspection          $47.40       $53.70       $64.45  ............  June 1, 2015.
 and Certification (re-grading of
 domestic tobacco for processing
 plants, retesting of imported
 tobacco, and grading tobacco for
 research stations.).
----------------------------------------------------------------------------------------------------------------
Export Permissive Inspection and               $0.0025/pound                        X   June 1, 2015.
 Certification (grading of
 domestic tobacco for
 manufacturers and dealers for
 duty drawback consideration).
----------------------------------------------------------------------------------------------------------------
Grading for Risk Management                     $0.01/pound                         X   June 1, 2015.
 Agency (for Tobacco Crop
 Insurance Quality Adjustment
 determinations).
----------------------------------------------------------------------------------------------------------------
Pesticide Test Sampling                 $0.0054/kg or $0.0025/pound                 X   June 1, 2015.
 (collection of certified tobacco
 sample and shipment to AMS
 National Science Laboratory for
 testing).
----------------------------------------------------------------------------------------------------------------
Pesticide Retest Sampling              $115.00/sample and $47.40/hour               X   June 1, 2015.
 (collection of certified tobacco
 sample from a previously sampled
 lot for re-testing at the AMS
 National Science Laboratory; fee
 includes shipping).
----------------------------------------------------------------------------------------------------------------
Standards Course (training by                 $1,200.00/person            ............  June 1, 2015.
 USDA-certified instructor on
 tobacco grading procedures).
----------------------------------------------------------------------------------------------------------------
Import Inspection and                   $0.0154/kg or $0.0070/pound                 X   June 1, 2015.
 Certification (grading of
 imported tobacco for
 manufacturers and dealers).
----------------------------------------------------------------------------------------------------------------
\1\ Travel costs outside the United States will be added to the fee, if applicable.
\2\ Administrative charges are applied in addition to hourly rates for resident service as specified in Part 56,
  Subpart A, Sec.   56.52(a)(4); Part 56, Subpart A, Sec.   56.54(a)(2); Part 70, Subpart A, Sec.   70.76(a)(2);
  Part 70, Subpart A, Sec.   70.77(a)(4) and Part 70, Subpart A, Sec.   70.77(a)(5).
\3\ Travel costs outside the United States will be added to the fee, if applicable.


    Authority:  7 U.S.C. 15b; 7 U.S.C. 473a-b; 7 U.S.C. 55 and 61; 7 
U.S.C. 51-65; 7 U.S.C. 471-476; 7 U.S.C. 511, 511s; and 7 U.S.C. 
1621-1627.

    Dated: April 6, 2015.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2015-08162 Filed 4-8-15; 8:45 am]
 BILLING CODE 3410-02-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesApril 10, 2015.
ContactSonia Jimenez, AMS, U.S. Department of Agriculture, Room 3069-S, 1400 Independence Ave. SW., Washington, DC 20250; telephone (202) 720-5115, fax (202) 720-8477; email [email protected]
FR Citation80 FR 19059 

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