82 FR 4198 - Addition of Mandatory Country of Origin Labeling Requirements for Venison
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service Federal Register Volume 82, Issue 9 (January 13, 2017)
Agricultural Marketing Service
Federal Register Volume 82, Issue 9 (January 13, 2017)
| Page Range | 4198-4203 | |
| FR Document | 2017-00588 |
[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)] [Proposed Rules] [Pages 4198-4203] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00588] ======================================================================== Proposed Rules Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. ======================================================================== Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules [[Page 4198]] DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 65 [Doc. No. AMS-LPS-16-0014] Addition of Mandatory Country of Origin Labeling Requirements for Venison AGENCY: Agricultural Marketing Service, USDA. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: The Agricultural Marketing Service (AMS) proposes to amend the country of origin labeling (COOL) regulation to add muscle cuts of venison and ground venison to mandatory COOL requirements. AMS is issuing this proposed rule to conform to amendments to the Agricultural Marketing Act of 1946 (Act) as mandated by the Agricultural Act of 2014 (2014 Farm Bill), that added muscle cuts of venison and ground venison to the list of covered commodities subject to mandatory COOL. DATES: Submit comments on or before March 14, 2017. Pursuant to the Paperwork Reduction Act, comments on the recordkeeping burden that would result from this proposal must be received by March 14, 2017. ADDRESSES: All comments should reference the docket number AMS-LPS-16- 0014; the date of submission; and the page number of this issue of the Federal Register. Comments may also be submitted to: Julie Henderson, Director, COOL Division; Livestock, Poultry, and Seed Program, Agricultural Marketing Service, U.S. Department of Agriculture (USDA); Room 2614-S, STOP 0216; 1400 Independence Avenue SW., Washington, DC 20250-0216. AMS will make the comments available for public inspection at the above address during regular business hours or via the Internet at www.regulations.gov. Pursuant to the Paperwork Reduction Act (PRA), send comments regarding the accuracy of the burden estimate, ways to minimize burden, including the use of automated collection techniques or other forms of information technology, or any other aspect of this collection of information to the above address. Comments concerning the information collection under PRA also should be sent to the Desk Office for Agriculture, Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503. Please be advised that all comments submitted in response to this proposed rule will be included in the record without change and will be made available to the public on the Internet at www.regulations.gov. The identity, including any personal information provided, of the individuals or entities submitting the comments will be made public. FOR FURTHER INFORMATION CONTACT: Julie Henderson, Director, COOL Division; Livestock, Poultry, and Seed Program, Agricultural Marketing Service, USDA; Room 2614-S, STOP 0216; 1400 Independence Avenue SW., Washington, DC 20250-0216; telephone (202) 720-4486; or email [email protected]. SUPPLEMENTARY INFORMATION: Executive Orders 12866 and 13563 Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. This proposed rule has been determined to be not significant for purposes of Executive Order 12866 or Executive Order 13563. Accordingly, the Office of Management and Budget (OMB) has waived the review process. Executive Order 12988 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. This proposed rule is not intended to have a retroactive effect. The Act prohibits states or political subdivisions of a state to impose any requirement that is in addition to, or inconsistent with, any requirement of the Act. There are no civil justice implications associated with this proposed rule. Executive Order 13132 This proposed rule has been reviewed under Executive Order 13132, Federalism. This Order directs agencies to construe, in regulations and otherwise, a Federal statute to preempt state law only where the statute contains an express preemption provision. No federalism implications are associated with this proposed rule. With regard to consultation with states, as directed by Executive Order 13132, AMS previously consulted with the states that have country of origin labeling programs. Currently, AMS has cooperative agreements with 47 states to assist in the enforcement of the COOL program and has communications with all 50 states on a regular basis. Background and Proposed Revisions AMS is proposing to add venison and ground venison to the list of covered commodities subject to mandatory COOL regulation in conformance to section 12104(b) of the Agricultural Act of 2014 (2014 Farm Bill) (Pub. L. 113-79). Retailers and suppliers would subsequently be required to keep records and provide their customers notification of the country of origin of muscle cuts and ground venison that they sell. Individuals that supply venison, whether directly to retailers or indirectly through other participants in the marketing chain, would be required to establish and maintain country of origin information for venison and supply this information to retailers. As a result, producers, handlers, manufacturers, wholesalers, importers, and retailers of venison would be affected. This proposed rule would amend the country of origin labeling regulations (7 CFR part 65). AMS proposes to add definitions for cervidae (Sec. 65.117), ground venison (Sec. 65.178), and venison (Sec. 65.270). The proposed rule would amend definitions for covered commodity (Sec. 65.135(a)(1) and (2)), production step (Sec. 65.230), raised (Sec. 65.235), slaughter (Sec. 65.250), and United States country of origin (Sec. 65.260(a)) by adding references to venison. AMS proposes to amend country of origin notification [[Page 4199]] (Sec. 65.300(h)) to add references to ground venison, and responsibilities of suppliers (Sec. 65.500(b)(1)) to include references to venison and cervidae. Additional administrative changes are necessary to reflect the withdrawal of beef and pork commodities from the COOL regulations as published in the Federal Register on March 2, 2016 (81 FR 10761). Therefore, AMS is proposing to amend production step (Sec. 65.230), raised (Sec. 65.235), and United States country of origin (Sec. 65.260) by removing references to beef and pork from these definitions. AMS is seeking comments on the aforementioned definitions and requirements. AMS also invites comments concerning potential economic and other effects of this proposed rule. Initial Regulatory Flexibility Analysis Pursuant to the requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), the Administrator of 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 entities. 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. Venison Industry In general, the supply chain for venison and ground venison consists of: Producers (ranchers); slaughterhouses, processors, importers, wholesalers, and distributors (intermediary firms); and retailers. Under this proposed rule, all entities in the supply chain would be affected. Because the venison industry is very small at all levels of the supply chain, the overall impact of this proposed rule would be insignificant. According to the 2014 North American Deer Farmers Association's Venison Council, most venison is sold to restaurants, which are not subject to COOL requirements. The proposed rule would impose recordkeeping requirements on venison producers and intermediary firms selling venison destined for retail channels. Individual retailers selling venison would also be subject to point of sale labeling and recordkeeping requirements. Each participant in the venison supply chain would bear recordkeeping costs as well as costs associated with modifications to their business practices. Producers USDA's National Agricultural Statistics Service (NASS) estimated that, in 2012, there were 4,042 deer farms and 1,199 elk farms, totaling 5,241 venison farms, in the U.S. This is a decrease from 7,571 in 2007. Of the venison producers identified in a Texas A&M University 2007 study,\1\ 32 percent of survey respondents were breeding and hunting operations and 7 percent were hunting-only operations. Moreover, the trophy-hunting segment of the venison industry represents the primary end market for the breeding stock industry. Breeding and hunting and hunting-only operations are not considered to be producers of venison for consumption that are subject to COOL. Relying on the NASS and Texas A&M data, AMS assumes that 60 percent of the ranches, or 3,144 producers, raise animals for meat consumption. Virtually all venison-producing operations that would be subject to the amended COOL regulations are small businesses under the criteria established by the Small Business Administration (SBA) [13 CFR 121.201]. SBA defines small agricultural producers as those having annual receipts of less than $750,000. --------------------------------------------------------------------------- \1\ Anderson, D.P., Frosch, B.J., and Outlaw, J.L. Economic Impact of the United States Cervid Farming Industry. APFC Research Report 07-4, August 2007. Agricultural & Food Policy Center. Texas A&M University: College Station, TX. --------------------------------------------------------------------------- While AMS believes that venison producers already maintain birth and raising records on each animal (which may include ear tagging, radio frequency identification devices, and other related means of identification on either an animal or a lot basis) as a normal part of business operations and animal husbandry practices, venison producers may use an affidavit to proclaim where the animals they produce are born and raised, not by individual but for the whole herd. Two factors drive the cost to venison producers to comply with this proposed rule: The time to create the initial affidavit and the time to administer and maintain the affidavit annually. AMS estimates it will take each venison producer 15 minutes (0.25 hours) to create and sign the initial affidavit used to substantiate country of origin claims and carry out the purposes of this regulation. If producers sign an affidavit of country of origin on all animals in the herd, the affidavit will suffice to achieve the purposes of this regulation even if some of the venison produced ultimately is not sold to retail establishments covered by the regulation. For venison producers, it is assumed that the added work needed to generate an affidavit from an existing recordkeeping system for country of origin is primarily a bookkeeping task. This task may be performed by an independent bookkeeper, or in the case of operations that perform their own bookkeeping, an individual with equivalent skills. The Bureau of Labor Statistics (BLS) publishes wage rates for bookkeepers, accounting, and auditing clerks. In estimating recordkeeping costs, May 2015 wage rates and benefits published by BLS from the National Compensation Survey are used. It is assumed that this wage rate represents the cost for venison producers to hire an independent bookkeeper. In the case of venison producers who currently perform their own bookkeeping, it is assumed that this wage rate represents the opportunity cost of the producers' time for performing these tasks. The May 2015 wage rate is estimated at $23.23 per hour. For this analysis, an additional 33 percent is added to the wage rate to account for total benefits, which include Social Security, unemployment insurance, workers compensation, etc. resulting in $30.90 per hour. Recordkeeping time for venison producers to generate and sign a producer affidavit is estimated at 15 minutes (0.25 hours) per operation. This 0.25 hours multiplied by 3,144 producers at a cost of $30.90 per hour results in approximately $24,287 to generate affidavits to substantiate country of origin claims. Annual maintenance is estimated to take 5 minutes (0.083 hours) for each of the 3,144 operations at a cost of $30.90 per hour for total annual costs of $8,063. Therefore, the total cost estimates for producers are $32,351, or approximately $10.29 per firm. Intermediary Firms Any establishment that supplies retailers with venison or ground venison would be required to provide country of origin information to retailers. This includes importers, slaughterhouses, processors, wholesalers, and distributors. From 2011 to 2015, USDA's Foreign Agricultural Service (FAS) reported venison imports of 21.78 million pounds valued at $79.3 million. For those years, the average annual venison imports were 4.356 million pounds valued at $15.86 million, or $3.64 per pound. During this period, the United States saw a dramatic increase in venison imports, with virtually all of it originating from New Zealand. For an imported venison covered commodity, the importer of record must ensure that [[Page 4200]] records provide clear product tracking from the port of entry into the U.S. to the immediate subsequent recipient. In addition, the records must accurately reflect the country of origin in relevant U.S. Customs and Border Protection entry documents and information systems. Regulated firms must maintain records to verify the accuracy of COOL declarations for a period of one year from the date of the transaction (purchase or sale of animals for slaughter, or venison meat at each point in the supply chain). AMS expects that importers already maintain records mandated by other Federal Statutes (e.g., Bioterrorism Act of 2002; Tariff Act of 1930) that would be sufficient to verify compliance with COOL. Of intermediaries potentially affected by the proposed rule, SBA classifies as small those manufacturing firms with less than 500 employees and wholesalers with less than 100 employees. Therefore, approximately 93 percent of the general-line grocery wholesalers are small businesses. According to NASS' 2012 Economic Census, there were a total of 2,162 meat and meat products specialty wholesaler firms. Of these, 2,043 firms had less than 100 employees, meaning approximately 95 percent of meat wholesalers are small firms. That same Census reported that 2,354 out of 2,629 (90 percent) livestock processing and slaughtering firms were in operation and classified as small businesses. USDA's Food Safety Inspection Service (FSIS) reported that 577 FSIS-inspected establishments (22 percent) in the U.S. process (i.e., slaughter and process or process-only) non-amenable species, which include venison. Intermediaries are generally assumed to have prior experience with COOL compliance and are expected to have lower costs needed to meet the requirements of this proposed rule than they did when COOL was first implemented. Wholesalers would incur recordkeeping costs, costs associated with supplying country of origin information to retailers, costs associated with segmenting products by country of origin, and additional handling costs. Given that venison is such a small percentage of proteins on the market, it is estimated that few intermediaries handle venison meat for sale to retail. Since virtually all intermediary firms are assumed to already have a recordkeeping system in place for other COOL covered commodities, it is estimated that one (1) hour will be required to add venison to the design at a cost of $45 per firm. The initial recordkeeping costs are estimated by using the Label Cost Model developed for the Food and Drug Administration (FDA) by RTI International for including additional country of origin information to a livestock processor's records ($33.75 per hour with an additional 33 percent added to cover benefit costs for a total of $45.00 per hour). While the cost will be higher for some firms and lower for others, it is believed that $45 per hour represents a reasonable estimate of average cost for all firms. Based on this calculation, it is estimated that the initial recordkeeping costs for the 577 firms specializing in livestock processing and slaughtering of non-amenable species will be approximately $25,965. Intermediaries such as handlers, processors, importers and wholesalers (except livestock processing and slaughtering) are considered to already have sufficient recordkeeping and documentation systems in place to convey COOL information for venison products. Thus, no recordkeeping, set-up, and maintenance burden is estimated for these entities. Maintenance activities will include inputting, tracking, and storing country of origin for venison. Since this is mostly an administrative task, the cost is estimated by using the May 2015 BLS wage rate from the National Compensation Survey for administrative support occupations ($17.40 per hour with an additional 33 percent added to cover benefit costs for a total of $23.14 per hour). This occupation category includes stock and inventory clerks and record clerks. Annual maintenance for venison processing and slaughter facilities is estimated to take 5 minutes (0.083 hours) at a cost of $23.14 per hour, for a total annual cost of $1,108. Total initial and maintenance costs for 577 livestock processing firms are estimated to be $27,073, or $46.92 per firm. Retailers According to the definition of retailer under the Perishable Agricultural Commodities Act of 1930, the number of retailers that would be affected by this proposed rule is considerably smaller than the total number of retailers nationwide. There are 4,504 retail firms subject to mandatory COOL regulations. An estimated 88 percent (3,964 out of 4,504) of retail firms are considered small businesses. Only a small percentage of the producers identified by the previously mentioned Texas A&M University 2007 study actually sell venison and an even smaller percentage sell venison products to retail stores subject to COOL. Venison meat is available through some specialty grocers and national chains that focus on `natural' meats. USDA's Economic Research Service supermarket sales data for venison and elk meat show that a total of 350,404 pounds were sold in supermarkets (the regulated retail firms subject to COOL) during the 5-year period from 2008 through 2012, or an average of 70,081 pounds per year. Average annual retail sales of venison are less than 2 percent of annual venison imports (70,000 divided by 4.4M pounds) without even accounting for domestic production. Most venison meat is consumed in restaurants, which are not subject to COOL requirements. The number of retailers selling venison is a small subset of the COOL-regulated retailer population. Retailers choosing to carry venison products would accrue additional recordkeeping costs associated with supplying country of origin information to consumers as well as additional handling costs. USDA estimates that 3 percent of retailers (135 firms out of 4,504 retailers in the U.S.) will carry venison. AMS estimates that 88 percent of these retailers will be small businesses, consistent with the overall retailer population. It is estimated that each of the 135 retail firms will require one (1) hour to add venison to existing data management systems. The initial recordkeeping costs for retailers are estimated by using the same Label Cost Model developed for FDA by RTI International for including additional country of origin information to a retailer's records. It is assumed that limited information, such as one-color redesign of a paper document, will be sufficient to comply with the rule's recordkeeping requirements (total salary and benefit costs of $45.00 per hour). Based on one hour per firm at $45 per hour and 135 firms, initial recordkeeping costs at retail are estimated to be approximately $6,075. The yearly storing and maintenance cost for retailers is estimated by using the May 2015 BLS wage rate from the National Compensation Survey for administrative support occupations ($23.14 for wages plus benefits per hour). Annual maintenance for retail firms is estimated to take 30 minutes (0.5 hours) on average for 135 retail firms, because only a small subset, about 3 percent, of the 4,504 retailers will sell venison, at a cost of $23.14 per hour for total annual maintenance costs of $1,562. Total initial and maintenance costs for 135 retailers are estimated to be $7,637. Accordingly, the Administrator of AMS has conducted this Initial Regulatory Flexibility Analysis and has determined that this proposed rule will not have a significant economic impact [[Page 4201]] on a substantial number of small entities. However, AMS invites comments concerning potential effects of this proposed rule. AMS has considered any significant alternatives to this proposal that accomplish the statutory objectives and minimize the significant economic impact of the proposal on small entities. AMS does not believe there are other Federal rules that may duplicate, overlap, or conflict with the proposed rule. The effect of this proposed rule would be limited to a small number of firms that produce, process, and market venison. The only effective means of achieving the results mandated by the 2014 Farm Bill is through this proposed regulatory action. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) (PRA), AMS is requesting OMB approval for a new information collection to add venison as a COOL covered commodity. The overall total burden for initial set-up, annual storage, and maintenance to comply with reporting and recordkeeping requirements for 3,856 recordkeepers is estimated to be 1,873 hours. OMB previously approved information collection requirements associated with all other COOL covered commodities and regulated firms and assigned OMB control number 0581-0250. This proposed rule would increase the overall reporting and recordkeeping burden due to the anticipated increase in number of respondents from the venison industry. Therefore, a NEW information collection is required to carry out the requirements of this proposed rule. AMS intends to merge this new information collection, upon OMB approval, into the approved 0581-0250 collection. Below, AMS has described and estimated the annual burden, i.e., the amount of time and cost of labor, for entities to prepare and maintain information to participate in this proposed mandatory labeling program. AMS is committed to complying with the E-Government Act, to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to government information and services, and for other purposes. As with all mandatory regulatory programs, recordkeeping burdens are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. The Act, as amended, provides authority for this action. Title: Mandatory Country of Origin Labeling Requirements for Venison Meat. OMB Number: 0581-NEW. Type of Request: This is a NEW collection. Abstract: The information collection requirements are essential to carry out this rule. COOL provisions of the Act require retailers and suppliers of COOL covered commodities to verify the accuracy of COOL claims. Only records maintained in the course of the normal conduct of the business are required to serve as verification. This proposed rule would add this recordkeeping requirement for producers, intermediaries, and retailers of venison meat. This public reporting burden is necessary to ensure conveyance and accuracy of country of origin and method of production declarations relied upon at the point of sale at retail. The public reporting burden also assures that all parties involved in supplying venison and ground venison meat to retail stores maintain and convey accurate information as required. AMS believes that typical venison ranching operations have already developed much of the necessary recordkeeping (for example, birth, health, feeding records, and other documentation used to manage and identify the flock or herd) through normal animal husbandry and business practices. Furthermore, producer affidavits shall also be considered acceptable records that suppliers may utilize to initiate origin claims. Therefore, the estimated incremental costs for venison producers to supplement existing records with country of origin information will be relatively small per firm. Examples of initial or start-up costs would be any additional recordkeeping burden to record the required country of origin information and transfer this information to handlers, processors, wholesalers, or retailers via records used in the normal course of business. Table 1 displays the estimated annual costs associated for venison producers, intermediaries, and retailers. This public reporting burden is necessary to ensure conveyance and accuracy of country of origin and method of production declarations relied upon at the point of sale at retail. The public reporting burden also assures that all parties involved in supplying covered commodities to retail stores maintain and convey accurate information as required. Table 1--Estimated Initial Set-Up and Estimated Annual Storage Maintenance Costs Associated With Paperwork Burden ------------------------------------------------------------------------ Initial & set-up costs (incurred one time only) Firms Initial costs ------------------------------------------------------------------------ Venison Producers....................... 3,144 $24,287 Handlers, Processors, Importers & 0 0 Wholesalers (except livestock processing & slaughtering)............. Livestock Processing & Slaughtering (non- 577 25,965 amenable species)...................... Retailers............................... 135 6,075 ------------------------------- Total Initial & Set-Up Costs........ 3,856 56,327 ------------------------------------------------------------------------ Annual Storing & Maintenance Costs Firms Maintenance (yearly maintenance cost burden) costs ------------------------------------------------------------------------ Venison Producers....................... 3,144 8,063 Handlers, Processors, Importers & 0 0 Wholesalers (except livestock processing & slaughtering)............. Livestock Processing & Slaughtering (non- 577 1,108 amenable species)...................... Retailers............................... 135 1,562 ------------------------------- Total Annual Storing & Maintenance 3,856 10,694 Costs.............................. ------------------------------- Total Estimated Set-Up and .............. 67,061 Annual Maintenance Costs....... ------------------------------------------------------------------------ [[Page 4202]] The request for approval of the new information collection is as follows: Estimate of Burden: Public reporting burden for initial set-up, recordkeeping, storage, and maintenance is estimated to average 14 minutes (0.24 hours) per response from all respondents (venison producers, livestock processers and slaughterers, and retailers). Initial Set-Up Burden Respondents: Producers, processors, slaughterhouses, handlers, wholesalers, importers, and retailers of venison and ground venison meat. Estimated Number of Respondents: 3,856. Estimated Number of Responses per Respondent: 1. Estimated Total Annual Responses: 3,856. Estimated Total Annual Burden on Respondents: 1,498 hours. Annual Storage Maintenance Burden Respondents: Producers, processors, slaughterhouses, handlers, wholesalers, importers, and retailers of venison and ground venison meat. Estimated Number of Respondents: 3,856. Estimated Number of Responses per Respondent: 1. Estimated Total Annual Responses: 3,856. Estimated Total Annual Burden on Respondents: 376 hours. Comments are invited on: (1) Whether the proposed collection of information is necessary for the proper performance of the functions of AMS, including whether the information will have practical utility; (2) the accuracy of AMS' estimate of the burden of the proposed collection of information including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on those who are to respond, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology. All responses to this notice will be summarized and included in the request for OMB approval. All comments will become a matter of public record. A 60-day period is provided to comment on the information collection burden. Comments should reference OMB No. 0581-NEW and be sent to Julie Henderson, Director, COOL Division; Livestock, Poultry, and Seed Program, Agricultural Marketing Service, USDA; Room 2614-S, STOP 0216; 1400 Independence Avenue SW., Washington, DC 20250-0216; telephone (202) 720-4486; or email [email protected]. All comments received will be available for public inspection. All responses to this proposed rule will be summarized and included in the request for OMB approval. All comments will become a matter of public record. Comments concerning the information collection under PRA should also be sent to the Desk Officer for Agriculture, Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503. List of Subjects in 7 CFR Part 65 Agricultural commodities, Food labeling, Meat and meat products, Reporting and recordkeeping requirements. For the reasons stated in the preamble, AMS proposes to amend 7 CFR part 65 as follows: PART 65--COUNTRY OF ORIGIN LABELING OF LAMB, CHICKEN, GOAT, AND VENISON MEAT, PERISHABLE AGRICULTURAL COMMODITIES, MACADEMIA NUTS, PECANS, PEANUTS, AND GINSENG 0 1. The authority citation for 7 CFR part 65 continues to read as follows: Authority: 7 U.S.C. 1621 et seq. 0 2. Revise the part heading of 7 CFR part 65 as set forth above. 0 3. Add Sec. 65.117 to read as follows: Sec. 65.117 Cervidae. Cervidae means any one of the various species that are raised for the production of venison meat, such as whitetail deer, elk, fallow deer, axis deer, sika, red deer (maral), musk deer, rusa deer, antelope, nilgai, pronghorn, reindeer, and caribou. 0 4. Amend Sec. 65.135 by revising paragraphs (a)(1) and (2) to read as follows: Sec. 65.135 Covered commodity. (a) * * * (1) Muscle cuts of lamb, chicken, goat, and venison; (2) Ground lamb, ground chicken, ground goat, and ground venison; * * * * * 0 5. Add Sec. 65.178 to read as follows: Sec. 65.178 Ground Venison. Ground venison means comminuted venison of skeletal origin that is produced in conformance with all applicable Food Safety and Inspection Service labeling guidelines. 0 6. Revise Sec. 65.230 to read as follows: Sec. 65.230 Production step. Production step means, in the case of lamb, chicken, goat, and venison, born, raised, or slaughtered. 0 7. Revise Sec. 65.235 to read as follows: Sec. 65.235 Raised. Raised means, in the case of lamb, chicken, goat, and venison, the period of time from birth until slaughter or in the case of animals imported for immediate slaughter as defined in Sec. 65.180, the period of time from birth until date of entry into the United States. 0 8. Revise Sec. 65.250 to read as follows: Sec. 65.250 Slaughter. Slaughter means the point in which a livestock animal (including chicken and cervidae) is prepared into meat products (covered commodities) for human consumption. For purposes of labeling under this part, the word harvested may be used in lieu of slaughtered. 0 9. Amend Sec. 65.260 by revising paragraph (a) to read as follows: Sec. 65.260 United States country of origin. * * * * * (a) Lamb, chicken, goat, and venison: * * * * * 0 10. Add Sec. 65.270 to read as follows: Sec. 65.270 Venison. Venison means meat produced from animals in the cervidae family. 0 11. Amend Sec. 65.300 by revising paragraph (h) to read as follows: Sec. 65.300 Country of origin notification. * * * * * (h) Labeling Ground Lamb, Ground Goat, Ground Chicken, and Ground Venison. The declaration for ground lamb, ground goat, ground chicken, and ground venison covered commodities shall list all countries of origin contained therein or that may be reasonably contained therein. In determining what is considered reasonable, when a raw material from a specific origin is not in a processor's inventory for more than 60 days, that country shall no longer be included as a possible country of origin. * * * * * 0 12. Amend Sec. 65.500 by revising paragraph (b)(1) to read as follows: Sec. 65.500 Recordkeeping requirements. * * * * * (b) * * * (1) Any person engaged in the business of supplying a covered commodity to a retailer, whether directly or indirectly, must make available information to the buyer about the country(ies) of origin of the covered commodity. This information may be provided either on the product itself, on [[Page 4203]] the master shipping container, or in a document that accompanies the product through retail sale. In addition, the supplier of a covered commodity that is responsible for initiating a country(ies) of origin claim, which in the case of lamb, chicken, goat, and venison is the slaughter facility, must possess records that are necessary to substantiate that claim for a period of 1 year from the date of the transaction. For that purpose, packers that slaughter animals that are tagged with an 840 Animal Identification Number device without the presence of any additional accompanying marking (i.e., ``CAN'' or ``M'') may use that information as a basis for a U.S. origin claim. Packers that slaughter animals that are part of another country's recognized official system (e.g. Canadian official system, Mexico official system) may also rely on the presence of an official ear tag or other approved device on which to base their origin claims. In the case of cervidae, producer affidavits shall also be considered acceptable records that suppliers may utilize to initiate origin claims, provided it is made by someone having first-hand knowledge of the origin of the covered commodity and identifies the covered commodity unique to the transaction. * * * * * Dated: January 9, 2017. Bruce Summners, Associate Administrator, Agricultural Marketing Service. [FR Doc. 2017-00588 Filed 1-12-17; 8:45 am] BILLING CODE 3410-02-P
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Proposed Rules Federal Register
Vol. 82, No. 9
Friday, January 13, 2017
This section of the FEDERAL REGISTER accuracy of the burden estimate, ways to requirement that is in addition to, or
contains notices to the public of the proposed minimize burden, including the use of inconsistent with, any requirement of
issuance of rules and regulations. The automated collection techniques or the Act. There are no civil justice
purpose of these notices is to give interested other forms of information technology, implications associated with this
persons an opportunity to participate in the or any other aspect of this collection of proposed rule.
rule making prior to the adoption of the final
rules.
information to the above address. Executive Order 13132
Comments concerning the information
collection under PRA also should be This proposed rule has been reviewed
sent to the Desk Office for Agriculture, under Executive Order 13132,
DEPARTMENT OF AGRICULTURE
Office of Information and Regulatory Federalism. This Order directs agencies
Agricultural Marketing Service Affairs, Office of Management and to construe, in regulations and
Budget, Washington, DC 20503. otherwise, a Federal statute to preempt
7 CFR Part 65 Please be advised that all comments state law only where the statute
submitted in response to this proposed contains an express preemption
[Doc. No. AMS–LPS–16–0014] provision. No federalism implications
rule will be included in the record
without change and will be made are associated with this proposed rule.
Addition of Mandatory Country of With regard to consultation with
Origin Labeling Requirements for available to the public on the Internet at
www.regulations.gov. The identity, states, as directed by Executive Order
Venison 13132, AMS previously consulted with
including any personal information
AGENCY: Agricultural Marketing Service, provided, of the individuals or entities the states that have country of origin
USDA. submitting the comments will be made labeling programs. Currently, AMS has
ACTION: Proposed rule. public. cooperative agreements with 47 states to
assist in the enforcement of the COOL
FOR FURTHER INFORMATION CONTACT: Julie
SUMMARY: The Agricultural Marketing program and has communications with
Henderson, Director, COOL Division;
Service (AMS) proposes to amend the all 50 states on a regular basis.
Livestock, Poultry, and Seed Program,
country of origin labeling (COOL) Background and Proposed Revisions
Agricultural Marketing Service, USDA;
regulation to add muscle cuts of venison
Room 2614–S, STOP 0216; 1400 AMS is proposing to add venison and
and ground venison to mandatory COOL
Independence Avenue SW., ground venison to the list of covered
requirements. AMS is issuing this
Washington, DC 20250–0216; telephone commodities subject to mandatory
proposed rule to conform to
(202) 720–4486; or email COOL@ COOL regulation in conformance to
amendments to the Agricultural
ams.usda.gov. section 12104(b) of the Agricultural Act
Marketing Act of 1946 (Act) as
mandated by the Agricultural Act of SUPPLEMENTARY INFORMATION: of 2014 (2014 Farm Bill) (Pub. L. 113–
2014 (2014 Farm Bill), that added 79). Retailers and suppliers would
Executive Orders 12866 and 13563 subsequently be required to keep
muscle cuts of venison and ground
venison to the list of covered Executive Orders 12866 and 13563 records and provide their customers
commodities subject to mandatory direct agencies to assess all costs and notification of the country of origin of
COOL. benefits of available regulatory muscle cuts and ground venison that
alternatives and, if regulation is they sell. Individuals that supply
DATES: Submit comments on or before necessary, to select regulatory venison, whether directly to retailers or
March 14, 2017. Pursuant to the approaches that maximize net benefits indirectly through other participants in
Paperwork Reduction Act, comments on (including potential economic, the marketing chain, would be required
the recordkeeping burden that would environmental, public health and safety to establish and maintain country of
result from this proposal must be effects, distributive impacts, and origin information for venison and
received by March 14, 2017. equity). Executive Order 13563 supply this information to retailers. As
ADDRESSES: All comments should emphasizes the importance of a result, producers, handlers,
reference the docket number AMS–LPS– quantifying both costs and benefits, manufacturers, wholesalers, importers,
16–0014; the date of submission; and reducing costs, harmonizing rules, and and retailers of venison would be
the page number of this issue of the promoting flexibility. This proposed affected.
Federal Register. Comments may also rule has been determined to be not This proposed rule would amend the
be submitted to: Julie Henderson, significant for purposes of Executive country of origin labeling regulations (7
Director, COOL Division; Livestock, Order 12866 or Executive Order 13563. CFR part 65). AMS proposes to add
Poultry, and Seed Program, Agricultural Accordingly, the Office of Management definitions for cervidae (§ 65.117),
Marketing Service, U.S. Department of and Budget (OMB) has waived the ground venison (§ 65.178), and venison
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
Agriculture (USDA); Room 2614–S, review process. (§ 65.270). The proposed rule would
STOP 0216; 1400 Independence Avenue amend definitions for covered
SW., Washington, DC 20250–0216. AMS Executive Order 12988 commodity (§ 65.135(a)(1) and (2)),
will make the comments available for This proposed rule has been reviewed production step (§ 65.230), raised
public inspection at the above address under Executive Order 12988, Civil (§ 65.235), slaughter (§ 65.250), and
during regular business hours or via the Justice Reform. This proposed rule is United States country of origin
Internet at www.regulations.gov. not intended to have a retroactive effect. (§ 65.260(a)) by adding references to
Pursuant to the Paperwork Reduction The Act prohibits states or political venison. AMS proposes to amend
Act (PRA), send comments regarding the subdivisions of a state to impose any country of origin notification
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![Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules 4199
(§ 65.300(h)) to add references to ground Producers For venison producers, it is assumed
venison, and responsibilities of USDA’s National Agricultural that the added work needed to generate
suppliers (§ 65.500(b)(1)) to include Statistics Service (NASS) estimated that, an affidavit from an existing
references to venison and cervidae. in 2012, there were 4,042 deer farms recordkeeping system for country of
Additional administrative changes are and 1,199 elk farms, totaling 5,241 origin is primarily a bookkeeping task.
venison farms, in the U.S. This is a This task may be performed by an
necessary to reflect the withdrawal of
decrease from 7,571 in 2007. Of the independent bookkeeper, or in the case
beef and pork commodities from the
venison producers identified in a Texas of operations that perform their own
COOL regulations as published in the
A&M University 2007 study,1 32 percent bookkeeping, an individual with
Federal Register on March 2, 2016 (81 equivalent skills. The Bureau of Labor
FR 10761). Therefore, AMS is proposing of survey respondents were breeding
and hunting operations and 7 percent Statistics (BLS) publishes wage rates for
to amend production step (§ 65.230), bookkeepers, accounting, and auditing
raised (§ 65.235), and United States were hunting-only operations.
Moreover, the trophy-hunting segment clerks. In estimating recordkeeping
country of origin (§ 65.260) by removing costs, May 2015 wage rates and benefits
references to beef and pork from these of the venison industry represents the
primary end market for the breeding published by BLS from the National
definitions. Compensation Survey are used. It is
stock industry. Breeding and hunting
AMS is seeking comments on the and hunting-only operations are not assumed that this wage rate represents
aforementioned definitions and considered to be producers of venison the cost for venison producers to hire an
requirements. AMS also invites for consumption that are subject to independent bookkeeper. In the case of
comments concerning potential COOL. Relying on the NASS and Texas venison producers who currently
economic and other effects of this A&M data, AMS assumes that 60 perform their own bookkeeping, it is
proposed rule. percent of the ranches, or 3,144 assumed that this wage rate represents
producers, raise animals for meat the opportunity cost of the producers’
Initial Regulatory Flexibility Analysis time for performing these tasks. The
consumption. Virtually all venison-
Pursuant to the requirements set forth producing operations that would be May 2015 wage rate is estimated at
subject to the amended COOL $23.23 per hour. For this analysis, an
in the Regulatory Flexibility Act (RFA)
regulations are small businesses under additional 33 percent is added to the
(5 U.S.C. 601–612), the Administrator of
the criteria established by the Small wage rate to account for total benefits,
AMS has considered the economic
Business Administration (SBA) [13 CFR which include Social Security,
effect of this action on small entities and
121.201]. SBA defines small agricultural unemployment insurance, workers
has determined that this proposed rule
producers as those having annual compensation, etc. resulting in $30.90
will not have a significant economic per hour. Recordkeeping time for
impact on a substantial number of small receipts of less than $750,000.
While AMS believes that venison venison producers to generate and sign
entities. The purpose of RFA is to fit a producer affidavit is estimated at 15
regulatory actions to the scale of producers already maintain birth and
raising records on each animal (which minutes (0.25 hours) per operation. This
businesses subject to such actions in 0.25 hours multiplied by 3,144
order that small businesses will not be may include ear tagging, radio
frequency identification devices, and producers at a cost of $30.90 per hour
unduly burdened. results in approximately $24,287 to
other related means of identification on
Venison Industry either an animal or a lot basis) as a generate affidavits to substantiate
normal part of business operations and country of origin claims. Annual
In general, the supply chain for maintenance is estimated to take 5
animal husbandry practices, venison
venison and ground venison consists of: minutes (0.083 hours) for each of the
producers may use an affidavit to
Producers (ranchers); slaughterhouses, 3,144 operations at a cost of $30.90 per
proclaim where the animals they
processors, importers, wholesalers, and hour for total annual costs of $8,063.
produce are born and raised, not by
distributors (intermediary firms); and Therefore, the total cost estimates for
individual but for the whole herd. Two
retailers. Under this proposed rule, all producers are $32,351, or approximately
factors drive the cost to venison
entities in the supply chain would be $10.29 per firm.
producers to comply with this proposed
affected. Because the venison industry rule: The time to create the initial Intermediary Firms
is very small at all levels of the supply affidavit and the time to administer and
chain, the overall impact of this Any establishment that supplies
maintain the affidavit annually. AMS retailers with venison or ground venison
proposed rule would be insignificant. estimates it will take each venison
According to the 2014 North American would be required to provide country of
producer 15 minutes (0.25 hours) to origin information to retailers. This
Deer Farmers Association’s Venison create and sign the initial affidavit used
Council, most venison is sold to includes importers, slaughterhouses,
to substantiate country of origin claims processors, wholesalers, and
restaurants, which are not subject to and carry out the purposes of this distributors.
COOL requirements. regulation. If producers sign an affidavit From 2011 to 2015, USDA’s Foreign
The proposed rule would impose of country of origin on all animals in the Agricultural Service (FAS) reported
recordkeeping requirements on venison herd, the affidavit will suffice to achieve venison imports of 21.78 million
producers and intermediary firms the purposes of this regulation even if pounds valued at $79.3 million. For
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
selling venison destined for retail some of the venison produced those years, the average annual venison
channels. Individual retailers selling ultimately is not sold to retail imports were 4.356 million pounds
venison would also be subject to point establishments covered by the valued at $15.86 million, or $3.64 per
of sale labeling and recordkeeping regulation. pound. During this period, the United
requirements. Each participant in the States saw a dramatic increase in
1 Anderson, D.P., Frosch, B.J., and Outlaw, J.L.
venison supply chain would bear venison imports, with virtually all of it
Economic Impact of the United States Cervid
recordkeeping costs as well as costs Farming Industry. APFC Research Report 07–4,
originating from New Zealand. For an
associated with modifications to their August 2007. Agricultural & Food Policy Center. imported venison covered commodity,
business practices. Texas A&M University: College Station, TX. the importer of record must ensure that
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![Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules 4203
the master shipping container, or in a Service (AMS) when the Board was last that is in addition to, or inconsistent
document that accompanies the product reapportioned in July 2014. These with, any requirement of the Act. There
through retail sale. In addition, the adjustments are required by the Beef are no civil justice implications
supplier of a covered commodity that is Promotion and Research Order (Order) associated with this proposed rule.
responsible for initiating a country(ies) and, if adopted, would result in a
Regulatory Flexibility Act and
of origin claim, which in the case of decrease in Board membership from 100
Paperwork Reduction Act
lamb, chicken, goat, and venison is the to 99, effective with the U.S.
slaughter facility, must possess records Department of Agriculture’s (USDA) Pursuant to the requirements set forth
that are necessary to substantiate that appointments for terms beginning early in the Regulatory Flexibility Act (RFA)
claim for a period of 1 year from the in the year 2018. [5 U.S.C. 601–612], the Administrator of
date of the transaction. For that purpose, DATES: Submit comments on or before AMS has considered the economic
packers that slaughter animals that are March 14, 2017. effect of this action on small entities and
tagged with an 840 Animal ADDRESSES: Comments should be posted
has determined that this proposed rule
Identification Number device without online at www.regulations.gov. would not have a significant economic
the presence of any additional Comments received will be posted impact on a substantial number of small
accompanying marking (i.e., ‘‘CAN’’ or without change, including any personal entities. The purpose of RFA is to fit
‘‘M’’) may use that information as a information provided. All comments regulatory actions to the scale of
basis for a U.S. origin claim. Packers should reference the docket number businesses subject to such actions in
that slaughter animals that are part of AMS–LPS–16–0071, the date of order that small businesses will not be
another country’s recognized official submission, and the page number of this unduly burdened.
system (e.g. Canadian official system, In the February 2013 publication of
issue of the Federal Register. Comments
Mexico official system) may also rely on ‘‘Farms, Land in Farms, and Livestock
may also be sent to Mike Dinkel,
the presence of an official ear tag or Operations,’’ USDA’s National
Agricultural Marketing Specialist;
other approved device on which to base Agricultural Statistics Service (NASS)
Research and Promotion Division;
their origin claims. In the case of estimated that the number of operations
Livestock, Poultry, and Seed Program,
cervidae, producer affidavits shall also in the United States with cattle in 2012
AMS, USDA; Room 2610–S, STOP 0249,
be considered acceptable records that totaled approximately 915,000, down
1400 Independence Avenue SW.,
suppliers may utilize to initiate origin from 950,000 in 2009. There are
Washington, DC 20250–0249; or via fax
claims, provided it is made by someone approximately 270 importers who
to (202) 720–1125. Comments will be
having first-hand knowledge of the import beef or edible beef products into
made available for public inspection at
origin of the covered commodity and the United States and 198 importers
the above address during regular
identifies the covered commodity who import live cattle into the United
business hours or via the Internet at
unique to the transaction. States. It is estimated that the majority
www.regulations.gov.
of those operations subject to the Order
* * * * * FOR FURTHER INFORMATION CONTACT: are considered small businesses under
Dated: January 9, 2017. Mike Dinkel, Research and Promotion the criteria established by the Small
Bruce Summners, Division, at (301) 352–7497; fax (202) Business Administration (SBA) [13 CFR
Associate Administrator, Agricultural 720–1125; or by email at 121.201]. SBA generally defines small
Marketing Service. Michael.Dinkel@ams.usda.gov. agricultural service firms as those
[FR Doc. 2017–00588 Filed 1–12–17; 8:45 am] SUPPLEMENTARY INFORMATION: having annual receipts of $7.5 million
BILLING CODE 3410–02–P Executive Orders 12866 and 13563 or less, and small agricultural producers
are generally defined as those having
Executive Orders 12866 and 13563 annual receipts of less than $750,000.
DEPARTMENT OF AGRICULTURE direct agencies to assess all costs and The proposed rule imposes no new
benefits of available regulatory burden on the industry. It only adjusts
Agricultural Marketing Service alternatives and, if regulation is representation on the Board to reflect
necessary, to select regulatory changes in domestic cattle inventory, as
7 CFR Part 1260 approaches that maximize net benefits well as in cattle and beef imports. The
(including potential economic, adjustments are required by the Order
[No. AMS–LPS–16–0071]
environmental, public health and safety and would result in a decrease in Board
Beef Promotion and Research; effects, distributive impacts, and membership from 100 to 99.
Reapportionment equity). Executive Order 13563 AMS is committed to complying with
emphasizes the importance of the E-Government Act of 2002 to
AGENCY: Agricultural Marketing Service, quantifying both costs and benefits, promote the use of the Internet and
USDA. reducing costs, harmonizing rules, and other information technologies to
ACTION: Proposed rule. promoting flexibility. This rule has been provide increased opportunities for
determined not to be significant for citizen access to government
SUMMARY: This proposed rule would purposes of Executive Order 12866 or information and services, and for other
adjust representation on the Cattlemen’s Executive Order 13563. Accordingly, purposes.
Beef Promotion and Research Board the Office of Management and Budget USDA has not identified any relevant
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
(Board), established under the Beef (OMB) has waived the review process. federal rules that duplicate, overlap, or
Promotion and Research Act of 1985 conflict with this rule.
(Act), to reflect changes in domestic Executive Order 12988
cattle inventories since January 1, 2013, This proposed rule has been reviewed Background and Proposed Action
as well as changes in levels of imported under Executive Order 12988, Civil The Board was initially appointed on
cattle, beef, and beef products that have Justice Reform. It is not intended to August 4, 1986, pursuant to the
occurred since December 31, 2012, have retroactive effect. The Act provisions of the Act [7 U.S.C. 2901–
which were the cut-off dates for data prohibits states or political subdivisions 2911] and the Order issued thereunder.
used by the Agricultural Marketing of a state to impose any requirement Domestic representation on the Board is
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Document Created: 2017-01-13 02:45:06
Document Modified: 2017-01-13 02:45:06
| 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 | Submit comments on or before March 14, 2017. Pursuant to the Paperwork Reduction Act, comments on the recordkeeping burden that would result from this proposal must be received by March 14, 2017. | |
| Contact | Julie Henderson, Director, COOL Division; Livestock, Poultry, and Seed Program, Agricultural Marketing Service, USDA; Room 2614-S, STOP 0216; 1400 Independence Avenue SW., Washington, DC 20250-0216; telephone (202) 720-4486; or email [email protected] | |
| FR Citation | 82 FR 4198 | |
| CFR Associated | Agricultural Commodities; Food Labeling; Meat and Meat Products and Reporting and Recordkeeping Requirements |
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