83 FR 6451 - Fees for Official Inspection and Official Weighing Services Under the United States Grain Standards Act (USGSA)

DEPARTMENT OF AGRICULTURE

Federal Register Volume 83, Issue 31 (February 14, 2018)

Page Range6451-6455
FR Document2018-02884

USDA, on behalf of the Agricultural Marketing Service (AMS) is announcing the fee schedule for official inspection and weighing services performed under the United States Grain Standards Act (USGSA), as amended, in order to comply with FGIS regulations and the Agriculture Reauthorizations Act of 2015, and publishing the annual review of Schedule A fees calculation and the resulting fees that went into effect on January 1, 2018.

Federal Register, Volume 83 Issue 31 (Wednesday, February 14, 2018)
[Federal Register Volume 83, Number 31 (Wednesday, February 14, 2018)]
[Rules and Regulations]
[Pages 6451-6455]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-02884]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 83, No. 31 / Wednesday, February 14, 2018 / 
Rules and Regulations

[[Page 6451]]



DEPARTMENT OF AGRICULTURE

7 CFR Part 800


Fees for Official Inspection and Official Weighing Services Under 
the United States Grain Standards Act (USGSA)

AGENCY: Agricultural Marketing Service, GIPSA, USDA.

ACTION: Final rule.

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

SUMMARY: USDA, on behalf of the Agricultural Marketing Service (AMS) is 
announcing the fee schedule for official inspection and weighing 
services performed under the United States Grain Standards Act (USGSA), 
as amended, in order to comply with FGIS regulations and the 
Agriculture Reauthorizations Act of 2015, and publishing the annual 
review of Schedule A fees calculation and the resulting fees that went 
into effect on January 1, 2018.

DATES: Effective February 14, 2018.

ADDRESSES: Submit comments or notice of intent to submit comments by 
any of the following methods:
     Postal Mail: Please send your comment addressed to Kendra 
Kline, AMS, USDA, 1400 Independence Avenue SW, Room 2043-S, Washington, 
DC 20250-3614.
     Hand Delivery or Courier: Kendra Kline, AMS, USDA, 1400 
Independence Avenue SW, Room 2043-S, Washington, DC 20250-3614.
     Internet: Go to http://www.regulations.gov. Follow the on-
line instructions for submitting comments.

FOR FURTHER INFORMATION CONTACT: Denise Ruggles, FGIS Executive Program 
Analyst, USDA AMS; Telephone: (816) 659-8406; Email: 
[email protected].

SUPPLEMENTARY INFORMATION: 
    USGSA authorizes the Secretary of Agriculture to provide official 
grain inspection and weighing services and to charge and collect 
reasonable fees for performing these services. The fees collected are 
to cover, as nearly as practicable, costs for performing these 
services, including associated administrative and supervisory costs. 
The fees are in the regulations at 7 CFR 800.71.
    On December 30, 2016, Grain Inspection, Packers and Stockyards 
Administration (GIPSA) published in the Federal Register (81 FR 96339) 
a final rule amending 7 CFR 800.71 in accordance with the 
Reauthorizations Act of 2015, which requires Federal Grain Inspection 
Service (FGIS) to conduct an annual review of the fees and operating 
reserve for the purposes of the annual adjustment of the fees.

GIPSA/AMS Merger

    The Secretary delegated to the Under Secretary for Marketing and 
Regulatory Programs (MRP) authorities ``related to grain inspection, 
packers and stockyards.'' 7 CFR 2.22(a)(3)(i)-(vi). In 7 CFR 2.81, the 
Under Secretary for MRP further delegated these authorities to the 
Administrator of GIPSA. In a November 14, 2017 Secretary's Memorandum, 
the Secretary directed that the authorities at 7 CFR 2.81 be re-
delegated to the Administrator of AMS, and that the delegations to the 
Administrator of GIPSA be revoked. The delegations to the Under 
Secretary of MRP related to grain inspection, packers and stockyards at 
7 CFR 2.22(a)(3) remain unchanged. As part of the reorganization, GIPSA 
(and FGIS) were merged into AMS.

Exemption From Notice and Comment

    In publishing this final rule, we are dispensing with the usual 
notice of proposed rulemaking and public comment procedures contained 
in 5 U.S.C. 553. We have determined that, under 5 U.S.C. 553(b)(3)(B), 
good cause exists for dispensing with the notice of proposed rulemaking 
and public comment procedures for this rule. Specifically the 
rulemaking comports with and is consistent with the statutory 
adjustment of fees in section 7 of the USGSA (7 U.S.C. 79(j)) and the 
regulations at 7 CFR 800.71 with no issue of policy discretion. 
Accordingly, we have determined that opportunity for prior comment is 
unnecessary and contrary to the public interest, and we are issuing 
this revised regulation as a final rule that will apply to all national 
tonnage fees, local tonnage fees, and fees for service in 2018.

Fee Calculations

    The regulations require FGIS annually review the national tonnage 
fees, local tonnage fees, and fees for service. After calculating the 
tonnage fees according to the regulatory formula in section 
800.71(b)(1), FGIS then reviews the amount of funds in the operating 
reserve at the end of the fiscal year (FY2017 in this case) to ensure 
that it has 4\1/2\ months of operating expenses as required by section 
800.71(b)(2) of the regulations. If the operating reserve has more, or 
less than 4\1/2\ months of operating expenses, then FGIS must adjust 
all Schedule A fees. For each $1,000,000, rounded down, that the 
operating reserve varies from the target of 4 \1/2\ months, FGIS will 
adjust all Schedule A fees by 2 percent. If the operating reserve 
exceeds the target, all Schedule A fees will be reduced. If the 
operating reserve does not meet target, all Schedule A fees will be 
increased. The maximum annual increase or decrease in fees is 5 percent 
(7 CFR 800.71(b)(2)(i)-(ii)).
    (a) Tonnage fees for the 5-year rolling average tonnage were 
calculated on the previous 5 fiscal years 2013, 2014, 2015, 2016 and 
2017. Tonnage fees consist of the national tonnage fee and local 
tonnage fee and are calculated and rounded to the nearest $0.001 per 
metric ton. The tonnage fees are calculated as following:
    (1) National tonnage fee. The national tonnage fee is the national 
program administrative costs for the previous fiscal year divided by 
the average yearly tons of export grain officially inspected and/or 
weighed by delegated States and designated agencies, excluding land 
carrier shipments to Canada and Mexico, and outbound grain officially 
inspected and/or weighed by FGIS during the previous 5 fiscal years.

[[Page 6452]]

[GRAPHIC] [TIFF OMITTED] TR14FE18.012


------------------------------------------------------------------------
                       Fiscal year                          Metric tons
------------------------------------------------------------------------
2013*...................................................      81,207,695
2014....................................................     117,560,767
2015....................................................     118,758,937
2016....................................................     122,330,979
2017....................................................     135,017,935
5-year Rolling Average..................................     114,975,263
------------------------------------------------------------------------
* To provide uniformity in the 5-year Rolling Average calculation,
  fiscal year 2013 include tons of export grain officially inspected and/
  or weighed by delegated States and designated agencies prior to the
  implementation of the fee assessment in the Federal Register (78 FR
  22151), effective May 1, 2013.

    The national program administrative costs for fiscal year 2017 were 
$6,906,527. The fiscal year 2018 national tonnage fee, prior to the 
operating reserve review, is calculated to be at $0.060 per metric ton.
    (2) Local tonnage fee. The local tonnage fee is the field office 
administrative costs for the previous fiscal year divided by the 
average yearly tons of outbound grain officially inspected and/or 
weighed by the field office during the previous 5 fiscal years. 
[GRAPHIC] [TIFF OMITTED] TR14FE18.013

    The field offices fiscal year tons for the previous 5 fiscal years 
and calculated 5-year rolling average are as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                          5-year Rolling
                      Field office                            FY 2013         FY 2014         FY 2015         FY 2016         FY 2017         Average
--------------------------------------------------------------------------------------------------------------------------------------------------------
New Orleans.............................................      42,399,760      62,862,914      65,244,517      66,077,535      70,439,862      61,404,918
League City.............................................      10,418,686      12,623,510      12,474,343      12,581,236      13,307,780      12,281,111
Portland................................................       3,953,500       6,065,934       4,111,533       4,645,754       5,175,459       4,790,436
Toledo..................................................       1,329,718       1,802,339       2,484,604       2,030,506       2,229,920       1,975,417
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The local field office administrative costs for fiscal year 2017 
and the fiscal year 2018 calculated local field office tonnage fee, 
prior to the operating reserve review, are as follows:

------------------------------------------------------------------------
                                                              Calculated
                                             FY 2017 Local     FY 2018
               Field office                 administrative      local
                                                 costs       tonnage fee
------------------------------------------------------------------------
New Orleans..............................        $1,722,327       $0.028
League City..............................           800,539        0.065
Portland.................................           409,115        0.085
Toledo...................................           349,374        0.177
------------------------------------------------------------------------

    (3) Operating reserve. In order to maintain an operating reserve 
not less than 3 and not more than 6 months, FGIS reviewed the value of 
the operating reserve at the end of FY2017 to ensure that an operating 
reserve of 4\1/2\ months is maintained.
    The program operating reserve at the end of fiscal year 2017 was 
$23,546,619 with a monthly operating expense of $3,340,024. The target 
of 4.5 months of operating reserve is $15,030,108 therefore the 
operating reserve is greater than 4.5 times the monthly operating 
expenses by $8,516,511. For each $1,000,000, rounded down, above the 
target level, all Schedule A fees must be reduced by 2 percent. The 
operating reserve is $8.5 million above the target level resulting in a 
calculated 16 percent reduction. As required by 800.71(b)(2)(ii), the 
reduction is limited to 5 percent. Therefore, FGIS is reducing all 
Schedule A fees for service in Schedule A in paragraph (a)(1) by the 
maximum 5 percent. All Schedule A fees for service are rounded to the 
nearest $0.10, except for fees based on tonnage or hundredweight.

Executive Orders 12866 and 13563

    The Office of Management and Budget (OMB) has reviewed this 
regulatory action in accordance with the provisions of Executive Order 
12866, Regulatory Planning and Review, and has determined that it does 
not meet the criteria for significant regulatory action. Additionally, 
because this rule does not meet the definition of a significant 
regulatory action, it does not trigger the requirements contained in 
Executive Order 13771. See OMB's Memorandum titled ``Guidance 
Implementing Executive Order 13771, Titled ``Reducing Regulation and 
Controlling Regulatory Costs'''' (April 5, 2017).

Regulatory Flexibility Act

    Since grain export volume can vary significantly from year to year, 
estimating the total impact in any single year can be difficult. AMS 
recognizes, however, that the industry needs predictable inspection and 
weighing fees. The regulations at 7 CFR 800.71(b) set an annual cap of 
5 percent for increases or decreases in inspection and weighing fees, 
and the increases and decreases are fixed according the statutory 
requirements of the Agriculture Reauthorization Act of 2015. This 
rulemaking is unlikely to

[[Page 6453]]

have an annual effect of $100 million or more or adversely affect a 
significant number of small entities.
    The provisions of the Regulatory Flexibility Act relating to an 
initial and final regulatory flexibility analysis (5 U.S.C. 603, 604) 
are not applicable to this final rule because USDA was not required to 
publish notice of proposed rulemaking under 5 U.S.C. 553 or any other 
law. Accordingly, a regulatory flexibility analysis is not required.

Paperwork Reduction Act

    This final rule imposes no new reporting or recordkeeping 
requirements necessitating clearance by OMB.

List of Subjects in 7 CFR Part 800

    Administrative practice and procedure, Exports, Grains, Reporting 
and recordkeeping requirements.

    For the reasons set out in the preamble, USDA amends 7 CFR part 800 
as follows:

PART 800--GENERAL REGULATIONS

0
1. The authority citation for part 800 continues to read as follows:

    Authority: 7 U.S.C. 71-87k.

0
2. Section 800.71(a)(1) is amended by revising Tables 1, 2, and 3 of 
Schedule A to read as follows:


Sec.  800.71  Fees assessed by the Service.

    (a) * * *
    (1) * * *

             Table 1 of Schedule A--Fees for Official Services Performed at an Applicant's Facility
                                        in an Onsite FGIS Laboratory \1\
----------------------------------------------------------------------------------------------------------------
                                                     Monday to       Monday to       Saturday,
                                                  Friday (6 a.m.  Friday (6 p.m.    Sunday, and      Holidays
                                                    to 6 p.m.)      to 6 a.m.)     overtime \2\
----------------------------------------------------------------------------------------------------------------
(i) Inspection and Weighing Services Hourly
 Rates (per service representative):
    1-year contract ($ per hour)................          $36.30          $38.00          $43.50          $64.40
    Noncontract ($ per hour)....................           64.40           64.40           64.40           64.40
----------------------------------------------------------------------------------------------------------------
(ii) Additional Tests (cost per test, assessed in addition to the hourly rate): \3\
    (A) Aflatoxin (rapid test kit method).......................................................           10.30
    (B) Aflatoxin (rapid test kit method-applicant provides kit) \4\............................            8.50
    (C) All other Mycotoxins (rapid test kit method)............................................           18.80
    (D) All other Mycotoxins (rapid test kit method-applicant provides kit) \4\.................           17.00
    (E) NIR or NMR Analysis (protein, oil, starch, etc.)........................................            2.50
    (F) Waxy corn (per test)....................................................................            2.50
    (G) Fees for other tests not listed above will be based on the lowest noncontract hourly      ..............
     rate.......................................................................................
    (H) Other services..........................................................................  ..............
        (1) Class Y Weighing (per carrier):
            (i) Truck/container.................................................................            0.70
            (ii) Railcar........................................................................            1.50
            (iii) Barge.........................................................................            2.80
----------------------------------------------------------------------------------------------------------------
(iii) Tonnage Fee (assessed in addition to all other applicable fees, only one tonnage fee will
 be assessed when inspection and weighing services are performed on the same carrier):
    (A) All outbound carriers serviced by the specific Field Office (per-metric ton):
        (1) League City.........................................................................           0.119
        (2) New Orleans.........................................................................           0.084
        (3) Portland............................................................................           0.138
        (4) Toledo..............................................................................           0.225
        (5) Delegated States \5\................................................................           0.057
        (6) Designated Agencies \5\.............................................................           0.057
----------------------------------------------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, re-inspection, and appeal inspection service and include,
  but are not limited to, sampling, grading, weighing, prior to loading stowage examinations, and certifying
  results performed within 25 miles of an employee's assigned duty station. Travel and related expenses will be
  charged for service outside 25 miles as found in Sec.   800.72(a).
\2\ Overtime rates will be assessed for all hours in excess of 8 consecutive hours that result from an applicant
  scheduling or requesting service beyond 8 hours, or if requests for additional shifts exceed existing
  staffing.
\3\ Appeal and re-inspection services will be assessed the same fee as the original inspection service.
\4\ Applicant must provide the test kit, instrument hardware, calibration control, and all supplies required by
  the test kit manufacturer.
\5\ Tonnage fee is assessed on export grain inspected and/or weighed, excluding land carrier shipments to Canada
  and Mexico.


 Table 2 of Schedule A--Services Performed at Other Than an Applicant's
                   Facility in an FGIS Laboratory 1 2
------------------------------------------------------------------------
 
------------------------------------------------------------------------
(i) Original Inspection and Weighing (Class X) Services:
    (A) Sampling only (use hourly rates from Table 1 of   ..............
     this section)......................................
    (B) Stationary lots (sampling, grade/factor, & check
     loading):
        (1) Truck/trailer/container (per carrier).......          $20.30
        (2) Railcar (per carrier).......................           30.00
        (3) Barge (per carrier).........................          188.70
        (4) Sacked grain (per hour per service                      0.07
         representative plus an administrative fee per
         hundredweight) (CWT)...........................
    (C) Lots sampled online during loading (sampling
     charge under (1)(i) of this table, plus):
        (1) Truck/trailer container (per carrier).......           12.20
        (2) Railcar (per carrier).......................           25.40
        (3) Barge (per carrier).........................          129.10
        (4) Sacked grain (per hour per service                      0.07
         representative plus an administrative fee per
         hundredweight) (CWT)...........................
    (D) Other services:

[[Page 6454]]

 
        (1) Submitted sample (per sample--grade and                12.20
         factor)........................................
        (2) Warehouseman inspection (per sample)........           21.30
        (3) Factor only (per factor--maximum 2 factors).            6.00
        (4) Check loading/condition examination (use                0.07
         hourly rates from Table 1 of this section, plus
         an administrative fee per hundredweight if not
         previously assessed) (CWT).....................
        (5) Re-inspection (grade and factor only.                  13.20
         Sampling service additional, item (1)(i) of
         this table)....................................
        (6) Class X Weighing (per hour per service                 64.40
         representative)................................
    (E) Additional tests (excludes sampling):
        (1) Aflatoxin (rapid test kit method)...........           30.30
        (2) Aflatoxin (rapid test kit method--applicant            28.50
         provides kit) \3\..............................
        (3) All other Mycotoxins (rapid test kit method)           39.00
        (4) All other Mycotoxins (rapid test kit method--          37.10
         applicant provides kit) \3\....................
        (5) NIR or NMR Analysis (protein, oil, starch,             10.30
         etc.)..........................................
        (6) Waxy corn (per test)........................           10.30
        (7) Canola (per test-00 dip test)...............           10.30
        (8) Pesticide Residue Testing: \4\
            (i) Routine Compounds (per sample)..........          217.50
            (ii) Special Compounds (Subject to                    115.90
             availability)..............................
        (9) Fees for other tests not listed above will    ..............
         be based on the lowest noncontract hourly rate
         from Table 1 of this section...................
(ii) Appeal inspection and review of weighing service:
 \5\
    (A) Board Appeals and Appeals (grade and factor)....           82.60
        (1) Factor only (per factor--max 2 factors).....           43.50
        (2) Sampling service for Appeals additional       ..............
         (hourly rates from Table 1 of this section)....
    (B) Additional tests (assessed in addition to all
     other applicable tests):
        (1) Aflatoxin (rapid test kit method)...........           30.30
        (2) Aflatoxin (rapid test kit method--applicant            28.30
         provides kit) \3\..............................
        (3) All other Mycotoxins (rapid test kit method)           47.50
        (4) All other Mycotoxins (rapid test kit method--          45.70
         applicant provides kit) \3\....................
        (5) NIR or NMR Analysis (protein, oil, starch,             17.90
         etc.)..........................................
        (6) Sunflower oil (per test)....................           17.90
        (7) Mycotoxin (per test-HPLC)...................          141.90
        (8) Pesticide Residue Testing: \4\
            (i) Routine Compounds (per sample)..........          217.50
            (ii) Special Compounds (Subject to                    115.90
             availability)..............................
        (9) Fees for other tests not listed above will    ..............
         be based on the lowest noncontract hourly rate
         from Table 1 of this section...................
    (C) Review of weighing (per hour per service                   83.30
     representative)....................................
(iii) Stowage examination (service-on-request): \4\
    (A) Ship (per stowage space) (minimum $257.50 per              51.50
     ship)..............................................
    (B) Subsequent ship examinations (same as original)            51.50
     (minimum $154.50 per ship).........................
    (C) Barge (per examination).........................           41.30
    (D) All other carriers (per examination)............           16.20
------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, re-inspection, and
  appeal inspection service and include, but are not limited to,
  sampling, grading, weighing, prior to loading stowage examinations,
  and certifying results performed within 25 miles of an employee's
  assigned duty station. Travel and related expenses will be charged for
  service outside 25 miles as found in Sec.   800.72(a).
\2\ An additional charge will be assessed when the revenue from the
  services in Schedule A, Table 2, does not cover what would have been
  collected at the applicable hourly rate as provided in Sec.
  800.72(b).
\3\ Applicant must provide the test kit, instrument hardware,
  calibration control, and all supplies required by the test kit
  manufacturer.
\4\ If performed outside of normal business, 1\1/2\ times the applicable
  unit fee will be charged.
\5\ If, at the request of the Service, a file sample is located and
  forwarded by the Agency, the Agency may, upon request, be reimbursed
  at the rate of $3.50 per sample by the Service.


            Table 3 of Schedule A--Miscellaneous Services \1\
------------------------------------------------------------------------
 
------------------------------------------------------------------------
(i) Grain grading seminars (per hour per service                  $64.40
 representative) \2\....................................
(ii) Certification of diverter-type mechanical samplers            64.40
 (per hour per service representative) \2\..............
(iii) Special weighing services (per hour per service
 representative):\2\
    (A) Scale testing and certification.................           83.90
    (B) Scale testing and certification of railroad                83.90
     track scales.......................................
    (C) Evaluation of weighing and material handling               83.90
     systems............................................
    (D) NTEP Prototype evaluation (other than Railroad             83.90
     Track Scales)......................................
    (E) NTEP Prototype evaluation of Railroad Track                83.90
     Scale..............................................
    (F) Use of FGIS railroad track scale test equipment           502.90
     per facility for each requested service. (Track
     scales tested under the Association of American
     Railroads agreement are exempt.)...................
    (G) Mass standards calibration and re-verification..           83.90
    (H) Special projects................................           83.90
(iv) Foreign travel (hourly fee) \3\....................           83.90
(v) Online customized data service:
    (A) One data file per week for 1 year...............          502.90
    (B) One data file per month for 1 year..............          301.80
(v) Samples provided to interested parties (per sample).            3.10
(vi) Divided-lot certificates (per certificate).........            2.00

[[Page 6455]]

 
(vii) Extra copies of certificates (per certificate)....            2.00
(viii) Faxing (per page)................................            2.00
(ix) Special mailing....................................     Actual Cost
(x) Preparing certificates onsite or during other than    ..............
 normal business hours (use hourly rates from Table 1)..
------------------------------------------------------------------------
\1\ Any requested service that is not listed will be performed at $64.40
  per hour.
\2\ Regular business hours--Monday through Friday--service provided at
  other than regular business hours will be charged at 1-\1/2\ times the
  applicable hourly rate. (See the definition of ``business day'' in
  Sec.   800.0(b))
\3\ Foreign travel charged hourly fee of $83.90 plus travel, per diem,
  and related expenditures.

* * * * *

    Dated: February 8, 2018.
Greg Ibach,
Under Secretary, Marketing and Regulatory Programs.
[FR Doc. 2018-02884 Filed 2-13-18; 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
SectionRules and Regulations
ActionFinal rule.
DatesEffective February 14, 2018.
ContactDenise Ruggles, FGIS Executive Program Analyst, USDA AMS; Telephone: (816) 659-8406; Email: [email protected]
FR Citation83 FR 6451 
CFR AssociatedAdministrative Practice and Procedure; Exports; Grains and Reporting and Recordkeeping Requirements

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