82 FR 21502 - 2017 Rates Charged for AMS Services

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 88 (May 9, 2017)

Page Range21502-21506
FR Document2017-09350

The Agricultural Marketing Service (AMS) is announcing the 2017 rates it will charge 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. The 2017 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 most cotton programs) depending on the commodity. Other starting dates are added to this notice based on cotton industry practices. This action establishes the rates for user-funded programs based on costs incurred by AMS.

Federal Register, Volume 82 Issue 88 (Tuesday, May 9, 2017)
[Federal Register Volume 82, Number 88 (Tuesday, May 9, 2017)]
[Notices]
[Pages 21502-21506]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-09350]


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Federal Register / Vol. 82, No. 88 / Tuesday, May 9, 2017 / Notices

[[Page 21502]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Document No. AMS-LPS-16-0117]


2017 Rates Charged for AMS Services

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

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

SUMMARY: The Agricultural Marketing Service (AMS) is announcing the 
2017 rates it will charge 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. The 2017 
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 most cotton programs) depending on the commodity. 
Other starting dates are added to this notice based on cotton industry 
practices. This action establishes the rates for user-funded programs 
based on costs incurred by AMS.

DATES: May 10, 2017.

FOR FURTHER INFORMATION CONTACT: Sonia Jimenez, AMS, U.S. Department of 
Agriculture, Room 2095-S, 1400 Independence Ave. SW., Washington, DC 
20250; telephone (202) 720-6766, fax (202) 205-5772; 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). Every year since then, the Department 
has published in the Federal Register a notice announcing the rates for 
its user -funded programs.
    This notice announces the 2017 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 most cotton programs). The cotton futures-related 
services effective date has been changed to August 1 to allow for 
cotton contracts to expire before starting a new fee rate.
    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. The formula used to calculate these 
rates also includes operating reserve, which may add to or draw upon 
the existing operating reserves.
    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 for 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 are 
held in the beginning of the year when most industry stakeholder 
meetings take place. 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 for services on a per-unit basis):
    (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

[[Page 21503]]

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 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.
    When possible, AMS is adjusting the rates to cover all of its 
expenses and to provide for reasonable operating reserves. Many of 
these rates were not adjusted for a number of years. In some cases fees 
are decreased due to efficiencies and cost cutting measures. Applying 
the formulas described above without consideration of the operating 
reserves, in some cases, would have resulted in a substantial increase 
in fees. Last year, AMS started the process of adjusting some of the 
rates to recover costs associated with providing these services. To 
avoid an undue burden on industry operations in these cases, AMS 
started to phase in some of the increases over a multi-year period. AMS 
continued this process and reassessed whether the fee rates and phase-
in period were appropriate based on the formula and established 
operating reserve. Fees are being adjusted accordingly. Drawing upon 
the existing operating reserves will not affect AMS' ability to 
maintain the minimally required operating reserves.
    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.

                                                   2017 Rates
----------------------------------------------------------------------------------------------------------------
                                                                         Includes
                                  Regular      Overtime     Holiday    travel costs           Start date
                                                                          in rate
----------------------------------------------------------------------------------------------------------------
                                                   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
----------------------------------------------------------------------------------------------------------------
                                             Cotton Standardization
----------------------------------------------------------------------------------------------------------------
Certification for Futures                     $4.25/bale                         X   August 1, 2017.
 Contract (Grading services
 for samples submitted by CCC-
 licensed samplers).
----------------------------------------------------------------------------------------------------------------
Transfer of Certification Data   $0.20/bale or $5.00 per page minimum            X   August 1, 2017.
 to 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                  $2.30/bale                         X   July 1, 2017.
 Producers (submitted by
 licensed sampler).
----------------------------------------------------------------------------------------------------------------
Form 1 Review (new sample                     $2.30/bale                         X   July 1, 2017.
 submitted by licensed
 sampler).
----------------------------------------------------------------------------------------------------------------
Form A Determinations (sample                 $2.30/bale                         X   July 1, 2017.
 submitted by licensed
 warehouse).
----------------------------------------------------------------------------------------------------------------
Form C Determinations (sample                 $2.30/bale               ............  July 1, 2017.
 submitted by non-licensed
 entity; bale sampled under
 USDA supervision).
----------------------------------------------------------------------------------------------------------------
Form D Determination (sample                  $2.30/bale                         X   July 1, 2017.
 submitted by owner or agent;
 classification represents
 sample only).
----------------------------------------------------------------------------------------------------------------
Foreign Growth Classification                $6.00/sample                        X   August 1, 2017.
 (sample of foreign growth
 cotton submitted by owner or
 agent; classification
 represents sample only).
----------------------------------------------------------------------------------------------------------------
Arbitration (comparison of a                 $6.00/sample                        X   August 1, 2017.
 sample to the official
 standards or a sample type).
----------------------------------------------------------------------------------------------------------------
Practical Cotton Classing Exam           Exam: $150/applicant                    X   July 1, 2017.
 (for non-USDA employees).
                                    Reexamination: $130/applicant
----------------------------------------------------------------------------------------------------------------
Special Sample Handling                      $0.50/sample                        X   July 1, 2017.
 (return of samples per
 request).
----------------------------------------------------------------------------------------------------------------
Electronic Copy of               $0.05/bale ($5.00/month minimum with            X   July 1, 2017.
 Classification Record.                 any records received)
----------------------------------------------------------------------------------------------------------------
Form A Rewrite (reissuance of      $0.15/bale or $5.00/page minimum              X   August 1, 2017.
 Form 1, Form A, or Futures
 Certification data or
 combination).
----------------------------------------------------------------------------------------------------------------

[[Page 21504]]

 
Form R (reissuance of Form 1       $0.15/bale or $5.00/page minimum              X   July 1, 2017.
 classification only).
----------------------------------------------------------------------------------------------------------------
International Instrument Level               $4.00/sample                        X   July 1, 2017.
 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       $90.92      $107.24            X   Oct 1, 2017.
 Service.
----------------------------------------------------------------------------------------------------------------
Non-resident and Intermittent         82.00        96.76       116.64            X   Oct 1, 2017.
 Grading Service; State
 Graders; Equipment Review.
----------------------------------------------------------------------------------------------------------------
Non-resident Services 6 p.m.-6        90.20       106.44       128.32            X   Oct 1, 2017.
 a.m. (10 percent night
 differential).
----------------------------------------------------------------------------------------------------------------
Export Certificate Services...        82.00          N/A          N/A  ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
Special Handling..............        41.00          N/A          N/A  ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
Fax Charge....................         4.00          N/A          N/A  ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
Derogation Application........       123.00          N/A          N/A  ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
                                            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                      $191.00 per lot             ............  Oct 1, 2017.
 Inspections for Whole Lots.
----------------------------------------------------------------------------------------------------------------
Quality and Condition Half Lot             $159.00 per lot             ............  Oct 1, 2017.
 or Condition-Only Inspections
 for Whole Lots.
----------------------------------------------------------------------------------------------------------------
Condition--Half Lot...........             $146.00 per lot             ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
Quality and Condition or                    $87.00 per lot             ............  Oct 1, 2017.
 Condition-Only Inspections
 for Additional Lots of the
 Same Product.
----------------------------------------------------------------------------------------------------------------
Dockside Inspections--Each                 $0.044 per pkg.             ............  Oct 1, 2017.
 package weighing <30 lbs.
----------------------------------------------------------------------------------------------------------------
Dockside Inspections--Each                 $0.068 per pkg.             ............  Oct 1, 2017.
 package weighing >30 lbs.
----------------------------------------------------------------------------------------------------------------
Charge per Individual Product              $174.00 per lot             ............  Oct 1, 2017.
 for Dockside Inspection.
----------------------------------------------------------------------------------------------------------------
Charge per Each Additional Lot              $79.00 per lot             ............  Oct 1, 2017.
 of the Same Product.
----------------------------------------------------------------------------------------------------------------
Inspections for All Hourly           $85.00      $112.00      $148.00  ............  Oct 1, 2017.
 Work.
----------------------------------------------------------------------------------------------------------------
Audit Services................                 $108.00                 ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
7 CFR Part 52--Processed Fruits and Vegetables, Processed ProductsThereof, and Other Processed Food Products
  Subpart--Regulations Governing Inspection and Certification; Sec.  Sec.   52.41-52.51 Fees and Charges
----------------------------------------------------------------------------------------------------------------
Lot Inspections...............       $75.00       $95.00      $116.00            X   Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
In-plant Inspections Under            72.00        92.00       112.00            X   Oct 1, 2017.
 Annual Contract (year-round).
----------------------------------------------------------------------------------------------------------------
Additional Graders (in-plant)         83.00       106.00       128.00            X   Oct 1, 2017.
 or Less Than Year-Round.
----------------------------------------------------------------------------------------------------------------
Audit Services................                 $108.00                 ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
                                             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............       $66.00       $83.00      $100.00            X   Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------

[[Page 21505]]

 
Non-commitment Grading........        87.00       103.00       120.00  ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
Night Differential (6 p.m.-6          73.00        91.00       109.00  ............  Oct 1, 2017.
 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, 2017.
----------------------------------------------------------------------------------------------------------------
7 CFR Part 75--Regulations for Inspection and Certification of Quality of Agricultural and Vegetable Seeds
  Sec.   75.41 General
----------------------------------------------------------------------------------------------------------------
Laboratory Testing............       $58.00       $86.00      $115.00            X   Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
Administrative Fee............          $14.50 per certificate         ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
                                                  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
  Subpart A-Grading of Poultry and Rabbit Products; Sec.  Sec.   70.70-70.78 Fees and Charges
----------------------------------------------------------------------------------------------------------------
Resident Service (in-plant)...   \1\ $48.00   \2\ $56.00   \2\ $81.00            X   Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
Resident, Night Differential      \2\ 51.00    \2\ 62.00    \2\ 88.00            X   Oct 1, 2017.
 (6 p.m.-6 a.m.).
----------------------------------------------------------------------------------------------------------------
Resident, Sunday Differential.    \2\ 58.00    \2\ 69.00          N/A            X   Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
Resident, Sunday and Night        \2\ 63.00    \2\ 72.00          N/A            X   Oct 1, 2017.
 Differential.
----------------------------------------------------------------------------------------------------------------
Fee Service (non-scheduled)...        78.00        97.00       117.00  ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
Audit Service.................                 $108.00                 ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
                                           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      $104.00      $120.00  ............  Oct 1, 2017.
----------------------------------------------------------------------------------------------------------------
Laboratory Approval Services         185.00       211.00       234.00            X   Jan 1, 2018.
 \3\.
----------------------------------------------------------------------------------------------------------------
                                                  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       $55.00       $64.00       $72.00  ............  July 1, 2017.
 and Certification (re-grading
 of domestic tobacco for
 processing plants, retesting
 of imported tobacco, and
 grading tobacco for research
 stations.).
----------------------------------------------------------------------------------------------------------------
Export Permissive Inspection                $0.0025/pound                        X   July 1, 2017.
 and Certification (grading of
 domestic tobacco for
 manufacturers and dealers for
 duty drawback consideration).
----------------------------------------------------------------------------------------------------------------
Grading for Risk Management                  $0.015/pound                        X   July 1, 2017.
 Agency (for Tobacco Crop
 Insurance Quality Adjustment
 determinations).
----------------------------------------------------------------------------------------------------------------
Pesticide Test Sampling              $0.0065/kg or $0.0029/pound                 X   July 1, 2017.
 (collection of certified
 tobacco sample and shipment
 to AMS National Science
 Laboratory for testing).
----------------------------------------------------------------------------------------------------------------

[[Page 21506]]

 
Pesticide Retest Sampling           $115.00/sample and $55.00/hour               X   July 1, 2017.
 (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              $1,250.00/person            ............  July 1, 2017.
 USDA-certified instructor on
 tobacco grading procedures).
----------------------------------------------------------------------------------------------------------------
Import Inspection and                $0.0170/kg or $0.0080/pound                 X   July 1, 2017.
 Certification (grading of
 imported tobacco for
 manufacturers and dealers).
----------------------------------------------------------------------------------------------------------------
\1\ 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: May 4, 2017.
Bruce Summers,
Acting Administrator.
[FR Doc. 2017-09350 Filed 5-8-17; 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.
DatesMay 10, 2017.
ContactSonia Jimenez, AMS, U.S. Department of Agriculture, Room 2095-S, 1400 Independence Ave. SW., Washington, DC 20250; telephone (202) 720-6766, fax (202) 205-5772; email [email protected]
FR Citation82 FR 21502 

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