81 FR 57495 - Amendment to the Beef Promotion and Research Rules and Regulations
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service Federal Register Volume 81, Issue 163 (August 23, 2016)
Agricultural Marketing Service
Federal Register Volume 81, Issue 163 (August 23, 2016)
| Page Range | 57495-57497 | |
| FR Document | 2016-20098 |
[Federal Register Volume 81, Number 163 (Tuesday, August 23, 2016)] [Proposed Rules] [Pages 57495-57497] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-20098] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 1260 [No. AMS-LPS-15-0084] Amendment to the Beef Promotion and Research Rules and Regulations AGENCY: Agricultural Marketing Service, USDA. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This proposed rule would amend the Beef Promotion and Research Order (Order) established under the Beef Promotion and Research Act of 1985 (Act) to add six Harmonized Tariff System (HTS) codes for imported veal and veal products and update assessment levels for imported veal and veal products based on revised determinations of live animal equivalencies. DATES: Comments must be received by October 24, 2016. ADDRESSES: Comments should be posted online at www.regulations.gov. Comments received will be posted without change, including any personal information provided. All comments should reference the docket number AMS-LPS-15-0084; the date of submission; and the page number of this issue of the Federal Register. Comments may also be sent to Mike Dinkel, Agricultural Marketing Specialist, Research and Promotion Division, Livestock, Poultry, and Seed Program, AMS, USDA, Room 2610-S, STOP 0249, 1400 Independence Avenue SW., Washington, DC 20250-0249; or via fax (202) 720-1125. Comments will be made available for public inspection at the above address during regular business hours or via the Internet at www.regulations.gov. Comments must be received by October 24, 2016. FOR FURTHER INFORMATION CONTACT: Mike Dinkel, Agricultural Marketing Specialist, Research and Promotion Division, Livestock, Poultry, and Seed Program, AMS, USDA, Room 2610-S, STOP 0249, 1400 Independence Avenue SW., Washington, DC 20250-0249; fax (202) 720-1125; telephone (301) 352- [[Page 57496]] 7497; or email [email protected]. SUPPLEMENTARY INFORMATION: Executive Order 12866 The Office of Management and Budget (OMB) has waived the review process required by Executive Order 12866 for this action. Executive Order 12988 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. This rule is not intended to have a retroactive effect. Section 11 of the Act (7 U.S.C. 2910) provides that nothing in the Act may be construed to preempt or supersede any other program relating to beef promotion organized and operated under the laws of the United States or any State. There are no administrative proceedings that must be exhausted prior to any judicial challenge to the provisions of this rule. Regulatory Flexibility Act Pursuant to the requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.), the Administrator of the Agricultural Marketing Service (AMS) has considered the economic effect of this action on small entities and has determined that this proposed rule will not have a significant economic impact on a substantial number of small business entities. The effect of the Order upon small entities was discussed in the July 18, 1986, Federal Register [51 FR 26132]. The purpose of RFA is to fit regulatory actions to the scale of businesses subject to such actions in order that small businesses will not be unduly burdened. Based on conversations with importing companies, there are approximately 270 importers who import beef and beef products and veal and veal products into the U.S. and about 198 importers who import live cattle into the U.S. The majority of these operations subject to the Order are considered small businesses under the criteria established by the Small Business Administration (SBA) [13 CFR 121.201]. SBA defines small agricultural service firms as those having annual receipts of $7.5 million or less. The proposed rule will impose no significant burden on the industry. It will merely add six HTS codes for imported veal and veal products and update assessment levels for imported veal and veal products based on revised determinations of live animal equivalencies. The addition of HTS codes reflects an increase of imported veal and veal product into the U.S. Accordingly, the Administrator of AMS has determined that this action will not have a significant impact on a substantial number of small entities. Paperwork Reduction Act In accordance with OMB regulations [5 CFR part 1320] that implement the Paperwork Reduction Act of 1995 [44 U.S.C. Chapter 35], the information collection and recordkeeping requirements contained in the Order and accompanying Rules and Regulations have previously been approved by OMB under OMB control number 0581-0093. Background The Act authorized the establishment of a national beef promotion and research program. The final Order was published in the Federal Register on July 18, 1986 (51 FR 21632), and the collection of assessments began on October 1, 1986. The program is administered by the Cattlemen's Beef Promotion and Research Board (Board), appointed by the Secretary of Agriculture (Secretary) from industry nominations, and composed of 100 cattle producers and importers. The program is funded by a $1-per-head assessment on producers selling cattle in the U.S. as well as an equivalent assessment on importers of cattle, beef, and beef products. Importers pay assessments on imported cattle, beef, and beef products. U.S. Customs and Border Protection collects and remits the assessment to the Board. The term ``importer'' is defined as ``any person who imports cattle, beef, or beef products from outside the United States.'' Imported beef or beef products is defined as ``products which are imported into the United States which the Secretary determines contain a substantial amount of beef including those products, which have been assigned one or more of the following numbers in the Tariff Schedule of the United States.'' On March 16, 2016, AMS published a proposed rule in the Federal Register (81 FR 14022) amending Sec. 1260.172 of the Order to add six HTS codes for imported veal and veal products. On May 6, 2016, AMS announced in a Notice to the Trade that it was withdrawing the proposed rule because an error was discovered in the imported veal carcass weight. AMS also announced at that time that it intended to publish another proposed rule with the correct carcass weight and to include the formula and an explanation of how the calculations for the new assessment rates are calculated. On June 30, 2016, AMS published the withdrawal Notice in the Federal Register (81 FR 42576). This proposed rule replaces the March 16, 2016, version. In Sec. 1260.172 of the Order, the table would be revised to include the new codes and assessment rates for imported veal and veal products. The Act requires that assessments on imported beef and beef products and veal and veal products be determined by converting such imports into live animal equivalents to ascertain the corresponding number of head of cattle. Carcass weight is the principle factor in calculating live animal equivalents. Prior to publishing the March 16, 2016, proposed rule, USDA received information from the Board regarding imported veal assessments. The Board requested expanding the number of HTS codes for imported veal and veal products in order to capture product that is not currently being assessed and to update the live animal equivalency rate on imported veal to reflect the same assessment as domestic veal and veal products. The Board also suggested that AMS update the dressed veal weight to better reflect current dressed veal weights. The Board recommended using an average dressed veal weight from 2010 to the most current data. The Board stated that establishing an average over this period of time takes into account short-term highs and lows due to the cattle cycle, weather effects, and feed prices. This average would be 154 pounds. In order to convert carcasses and cuts back to a live animal equivalency, conversion factors are used. The conversion factor takes into account what is lost (feet, head, tail, hide, internal organs, and bone for boneless product) as the veal is processed into carcasses, bone-in cuts, and boneless cuts. For bone-in carcasses and cuts, a one-to-one ratio is used to convert product weight to a live animal equivalent. For these items, a conversion factor of 1.00 is used. For boneless veal cuts, the conversion factor ``adds back'' the weight of the bones removed from the product. For boneless veal cuts, a conversion factor of 1.32 is used. To determine the conversion factor of boneless veal cuts to carcass weight equivalents, AMS used the latest boneless veal factor for pounds (0.685) from Table 7 of the Economic Research Service Agricultural Handbook Number 697, Weights, Measures, and Conversion Factors for Agricultural Commodities and Their Products (June 1992), subtracted this factor from ``1,'' and added ``1'' to the result, as follows: (1-0.685) + 1 = 1.315 (rounded to 1.32) [[Page 57497]] The assessment per kilograms is determined by dividing the conversion factor by the carcass weight and multiplying it by the pounds-to-kilograms factor of 2.2046. Calculations:Carcass and Bone-in Cuts [GRAPHIC] [TIFF OMITTED] TP23AU16.007 Boneless Cuts [GRAPHIC] [TIFF OMITTED] TP23AU16.003 These rates appear as assessment rates in the HTS code tables in Sec. 1260.172. List of Subjects in 7 CFR Part 1260 Administrative practice and procedure, Advertising, Agricultural research, Imports, Marketing agreement, Meat and meat products, Reporting and recordkeeping requirements. For the reasons stated in the preamble, AMS proposes to amend 7 CFR part 1260 as follows: PART 1260--BEEF PROMOTION AND RESEARCH 0 1. The authority citation for 7 CFR part 1260 continues to read as follows: Authority: 7 U.S.C. 2901-2911 and 7 U.S.C. 7401. 0 2. Amend Sec. 1260.172 by revising paragraph (b) (2) to read as follows: Sec. 1260.172 Assessments. * * * * * (b) * * * (2) The assessment rates for imported cattle, beef, beef products, veal, and veal products are as follows: Imported Beef and Beef Products [Veal] ------------------------------------------------------------------------ Assessment rate HTS No. Item description per kg ------------------------------------------------------------------------ 0201.10.0510.................. Veal carcasses and .01431558 half carcasses. 0201.10.1010.................. Misc. Veal............ .01431558 0201.10.5010.................. Misc. Veal............ .01431558 0202.10.0510.................. Veal carcasses and .01431558 half carcasses. 0202.10.1010.................. Veal carcasses and .01431558 half carcasses. 0202.10.5010.................. Veal carcasses and .01431558 half carcasses. ------------------------------------------------------------------------ Imported Beef and Beef Products [Veal] ------------------------------------------------------------------------ Assessment rate HTS No. Item description per kg ------------------------------------------------------------------------ 0201.20.5010.................. Fresh or chilled bone .01431558 in veal cuts. 0201.20.5020.................. Other................. .01431558 0201.30.5010.................. Fresh or chilled .01889657 boneless veal cuts. 0201.30.5020.................. Other................. .01889657 0202.30.5010.................. Frozen boneless veal .01889657 cuts. 0202.30.5020.................. Other................. .01889657 ------------------------------------------------------------------------ * * * * * Dated: August 18, 2016 Elanor Starmer, Administrator, Agricultural Marketing Service. [FR Doc. 2016-20098 Filed 8-22-16; 8:45 am] BILLING CODE 3410-02-P
![Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Proposed Rules 57495
2016–17 fiscal period include $3,000 for small or large Washington apricot established for Washington apricots
the contracted management fee to the handlers. As with all Federal marketing handled in the production area.
Washington State Fruit Commission, order programs, reports and forms are Dated: August 18, 2016.
$1,200 for Committee travel, $2,000 for periodically reviewed to reduce Elanor Starmer,
the annual audit, $500 for computer and information requirements and
Administrator, Agricultural Marketing
technical services, and $250 for office duplication by industry and public
Service.
supplies. Budgeted expenses for these sector agencies.
[FR Doc. 2016–20096 Filed 8–22–16; 8:45 am]
items in the 2015–2016 fiscal period AMS is committed to complying with
the E-Government Act, to promote the BILLING CODE 3410–02–P
were $3,000 for the management fee,
$1,200 for Committee travel, $2,500 for use of the internet and other
the annual audit, and $500 for office information technologies to provide
increased opportunities for citizen DEPARTMENT OF AGRICULTURE
supplies.
The Committee discussed alternatives access to Government information and Agricultural Marketing Service
to this action, including recommending services, and for other purposes.
alternative expenditure levels and USDA has not identified any relevant
7 CFR Part 1260
assessment rates. Although lower Federal rules that duplicate, overlap or
assessment rates were considered, none conflict with this action. [No. AMS–LPS–15–0084]
were selected because they would not A small business guide on complying
have generated sufficient income to with fruit, vegetable, and specialty crop Amendment to the Beef Promotion and
administer the order. marketing agreements and orders may Research Rules and Regulations
A review of historical data and be viewed at: http://www.ams.usda.gov/
preliminary information pertaining to rules-regulations/moa/small-businesses. AGENCY: Agricultural Marketing Service,
the upcoming 2016–17 fiscal period Any questions about the compliance USDA.
season indicates that the grower price guide should be sent to Antoinette ACTION: Proposed rule.
for Washington apricots could range Carter at the previously-mentioned
between $1,050 and $1,300 per ton. address in the FOR FURTHER INFORMATION SUMMARY: This proposed rule would
Therefore, the assessment revenue for CONTACT section. amend the Beef Promotion and Research
the 2016–17 fiscal period, as a A 30-day comment period is provided Order (Order) established under the
percentage of total grower revenue, to allow interested persons to respond Beef Promotion and Research Act of
could range between 0.133 and 0.108 to this proposed rule. Thirty days is 1985 (Act) to add six Harmonized Tariff
percent. deemed appropriate because: (1) The System (HTS) codes for imported veal
This action would increase the 2016–17 fiscal period began on April 1, and veal products and update
assessment obligation imposed on 2016, and the marketing order requires assessment levels for imported veal and
handlers. While assessments impose that the rate of assessment for each veal products based on revised
some additional costs on handlers, the fiscal period apply to all assessable determinations of live animal
costs are minimal and uniform on all Washington apricots handled during equivalencies.
handlers. However, these costs would such fiscal period; (2) the Committee DATES: Comments must be received by
be offset by the benefits derived by the needs to have sufficient funds to pay its October 24, 2016.
operation of the order. expenses, which are incurred on a
In addition, the Committee’s meeting ADDRESSES: Comments should be posted
continuous basis; (3) handlers are
was widely publicized throughout the online at www.regulations.gov.
already shipping Washington apricots
Washington apricot industry and all Comments received will be posted
from the 2016 crop; and (4) handlers are
interested persons were invited to without change, including any personal
aware of this action, which was
attend the meeting and participate in information provided. All comments
unanimously recommended by the
Committee deliberations on all issues. should reference the docket number
Committee at a public meeting and is
Like all Committee meetings, the May AMS–LPS–15–0084; the date of
similar to other assessment rate actions
11, 2016, meeting was a public meeting submission; and the page number of this
issued in past years.
and all entities, both large and small, issue of the Federal Register. Comments
were able to express views on this issue. List of Subjects in 7 CFR Part 922 may also be sent to Mike Dinkel,
Finally, interested persons are invited to Apricots, Marketing agreements, Agricultural Marketing Specialist,
submit comments on this proposed rule, Reporting and recordkeeping Research and Promotion Division,
including the regulatory and requirements. Livestock, Poultry, and Seed Program,
informational impacts of this action on For the reasons set forth in the AMS, USDA, Room 2610–S, STOP 0249,
small businesses. preamble, 7 CFR part 922 is proposed to 1400 Independence Avenue SW.,
In accordance with the Paperwork be amended as follows: Washington, DC 20250–0249; or via fax
Reduction Act of 1995 (44 U.S.C. (202) 720–1125. Comments will be
Chapter 35), the order’s information PART 922—APRICOTS GROWN IN made available for public inspection at
collection requirements have been DESIGNATED COUNTIES IN the above address during regular
previously approved by the Office of WASHINGTON business hours or via the Internet at
Management and Budget (OMB) and www.regulations.gov. Comments must
assigned OMB No. 0581–0189. No ■ 1. The authority citation for 7 CFR be received by October 24, 2016.
srobinson on DSK5SPTVN1PROD with PROPOSALS
changes in those requirements as a part 922 continues to read as follows: FOR FURTHER INFORMATION CONTACT:
result of this action are necessary. Authority: 7 U.S.C. 601–674. Mike Dinkel, Agricultural Marketing
Should any changes become necessary, ■ 2. Section 922.235 is revised to read Specialist, Research and Promotion
they would be submitted to OMB for as follows: Division, Livestock, Poultry, and Seed
approval. Program, AMS, USDA, Room 2610–S,
This proposed rule would not impose § 922.235 Assessment rate. STOP 0249, 1400 Independence Avenue
any additional reporting or On or after April 1, 2016, an SW., Washington, DC 20250–0249; fax
recordkeeping requirements on either assessment rate of $1.40 per ton is (202) 720–1125; telephone (301) 352–
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![57496 Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Proposed Rules
7497; or email Michael.Dinkel@ has determined that this action will not Register (81 FR 42576). This proposed
ams.usda.gov. have a significant impact on a rule replaces the March 16, 2016,
SUPPLEMENTARY INFORMATION: substantial number of small entities. version. In § 1260.172 of the Order, the
table would be revised to include the
Executive Order 12866 Paperwork Reduction Act
new codes and assessment rates for
The Office of Management and Budget In accordance with OMB regulations imported veal and veal products.
(OMB) has waived the review process [5 CFR part 1320] that implement the The Act requires that assessments on
required by Executive Order 12866 for Paperwork Reduction Act of 1995 [44 imported beef and beef products and
this action. U.S.C. Chapter 35], the information veal and veal products be determined by
collection and recordkeeping converting such imports into live
Executive Order 12988 requirements contained in the Order animal equivalents to ascertain the
This proposed rule has been reviewed and accompanying Rules and corresponding number of head of cattle.
under Executive Order 12988, Civil Regulations have previously been Carcass weight is the principle factor in
Justice Reform. This rule is not intended approved by OMB under OMB control calculating live animal equivalents.
to have a retroactive effect. number 0581–0093. Prior to publishing the March 16,
Section 11 of the Act (7 U.S.C. 2910) Background 2016, proposed rule, USDA received
provides that nothing in the Act may be information from the Board regarding
construed to preempt or supersede any The Act authorized the establishment
imported veal assessments. The Board
other program relating to beef of a national beef promotion and
requested expanding the number of HTS
promotion organized and operated research program. The final Order was
codes for imported veal and veal
under the laws of the United States or published in the Federal Register on
products in order to capture product
any State. There are no administrative July 18, 1986 (51 FR 21632), and the
collection of assessments began on that is not currently being assessed and
proceedings that must be exhausted to update the live animal equivalency
prior to any judicial challenge to the October 1, 1986. The program is
administered by the Cattlemen’s Beef rate on imported veal to reflect the same
provisions of this rule. assessment as domestic veal and veal
Promotion and Research Board (Board),
Regulatory Flexibility Act appointed by the Secretary of products. The Board also suggested that
Agriculture (Secretary) from industry AMS update the dressed veal weight to
Pursuant to the requirements set forth
nominations, and composed of 100 better reflect current dressed veal
in the Regulatory Flexibility Act (RFA)
cattle producers and importers. The weights. The Board recommended using
(5 U.S.C. 601 et seq.), the Administrator
program is funded by a $1-per-head an average dressed veal weight from
of the Agricultural Marketing Service
assessment on producers selling cattle 2010 to the most current data. The
(AMS) has considered the economic
effect of this action on small entities and in the U.S. as well as an equivalent Board stated that establishing an average
has determined that this proposed rule assessment on importers of cattle, beef, over this period of time takes into
will not have a significant economic and beef products. account short-term highs and lows due
impact on a substantial number of small Importers pay assessments on to the cattle cycle, weather effects, and
business entities. The effect of the Order imported cattle, beef, and beef products. feed prices. This average would be 154
upon small entities was discussed in the U.S. Customs and Border Protection pounds.
July 18, 1986, Federal Register [51 FR collects and remits the assessment to the In order to convert carcasses and cuts
26132]. The purpose of RFA is to fit Board. The term ‘‘importer’’ is defined back to a live animal equivalency,
regulatory actions to the scale of as ‘‘any person who imports cattle, beef, conversion factors are used. The
businesses subject to such actions in or beef products from outside the conversion factor takes into account
order that small businesses will not be United States.’’ Imported beef or beef what is lost (feet, head, tail, hide,
unduly burdened. products is defined as ‘‘products which internal organs, and bone for boneless
Based on conversations with are imported into the United States product) as the veal is processed into
importing companies, there are which the Secretary determines contain carcasses, bone-in cuts, and boneless
approximately 270 importers who a substantial amount of beef including cuts.
import beef and beef products and veal those products, which have been For bone-in carcasses and cuts, a one-
and veal products into the U.S. and assigned one or more of the following to-one ratio is used to convert product
about 198 importers who import live numbers in the Tariff Schedule of the weight to a live animal equivalent. For
cattle into the U.S. The majority of these United States.’’ these items, a conversion factor of 1.00
operations subject to the Order are On March 16, 2016, AMS published a is used.
considered small businesses under the proposed rule in the Federal Register For boneless veal cuts, the conversion
criteria established by the Small (81 FR 14022) amending § 1260.172 of factor ‘‘adds back’’ the weight of the
Business Administration (SBA) [13 CFR the Order to add six HTS codes for bones removed from the product. For
121.201]. SBA defines small agricultural imported veal and veal products. On boneless veal cuts, a conversion factor
service firms as those having annual May 6, 2016, AMS announced in a of 1.32 is used.
receipts of $7.5 million or less. Notice to the Trade that it was To determine the conversion factor of
The proposed rule will impose no withdrawing the proposed rule because boneless veal cuts to carcass weight
significant burden on the industry. It an error was discovered in the imported equivalents, AMS used the latest
will merely add six HTS codes for veal carcass weight. AMS also boneless veal factor for pounds (0.685)
srobinson on DSK5SPTVN1PROD with PROPOSALS
imported veal and veal products and announced at that time that it intended from Table 7 of the Economic Research
update assessment levels for imported to publish another proposed rule with Service Agricultural Handbook Number
veal and veal products based on revised the correct carcass weight and to 697, Weights, Measures, and Conversion
determinations of live animal include the formula and an explanation Factors for Agricultural Commodities
equivalencies. The addition of HTS of how the calculations for the new and Their Products (June 1992),
codes reflects an increase of imported assessment rates are calculated. On June subtracted this factor from ‘‘1,’’ and
veal and veal product into the U.S. 30, 2016, AMS published the added ‘‘1’’ to the result, as follows:
Accordingly, the Administrator of AMS withdrawal Notice in the Federal (1¥0.685) + 1 = 1.315 (rounded to 1.32)
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Document Created: 2018-02-09 11:40:21
Document Modified: 2018-02-09 11:40:21
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | Comments must be received by October 24, 2016. | |
| Contact | Mike Dinkel, Agricultural Marketing Specialist, Research and Promotion Division, Livestock, Poultry, and Seed Program, AMS, USDA, Room 2610-S, STOP 0249, 1400 Independence Avenue SW., Washington, DC 20250-0249; fax (202) 720-1125; telephone (301) 352- 7497; or email [email protected] | |
| FR Citation | 81 FR 57495 | |
| CFR Associated | Administrative Practice and Procedure; Advertising; Agricultural Research; Imports; Marketing Agreement; Meat and Meat Products and Reporting and Recordkeeping Requirements |
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