[Federal Register Volume 59, Number 37 (Thursday, February 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4121]


[[Page Unknown]]

[Federal Register: February 24, 1994]


                                                    VOL. 59, NO. 37

                                        Thursday, February 24, 1994
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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 51

[Docket Number FV-93-302]
RIN 0581-ABO3

 

Fresh Fruits, Vegetables and Other Products (Inspection, 
Certification, and Standards)

AGENCY: Agricultural\1\ Marketing Service, USDA.

    \1\Among such other products are the following: Raw nuts; 
Christmas trees and evergreens; flowers and flower bulbs; and onion 
sets.
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ACTION: Proposed rule.

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SUMMARY: This proposed rule would revise the regulations governing 
inspection and certification for fresh fruits, vegetables and other 
products by revising the fees charged for the inspection of these 
products at destination markets and by clarifying other charge-related 
regulations. The proposed fee increases are needed to offset the costs 
of developing and maintaining U.S. grade standards for fresh fruits and 
vegetables and to recover the costs of providing Federal fruit and 
vegetable inspection service at destination markets. Regulations 
regarding fees for inspection of small lots (fifty packages or less) 
would be added to provide a fee commensurate with the level of effort 
typically required to conduct such inspections. Finally, regulations 
regarding charges for waiting time would be added and conditions 
governing the applicability of dock-side inspection fees would be 
clarified.

DATES: Comments must be postmarked or courier dated on or before March 
28, 1994.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent in duplicate to the 
Office of the Branch Chief, Fresh Products Branch, Fruit and Vegetable 
Division, Agricultural Marketing Service, U.S. Department of 
Agriculture, P.O. Box 96456, room 2056 South Building, Washington, D.C. 
20090-6456. Comments should make reference to the date and page number 
of this issue of the Federal Register and will be made available for 
public inspection in the above office during regular business hours.

FOR FURTHER INFORMATION CONTACT: Mr. Douglas Bailey, 202-720-5870.

SUPPLEMENTARY INFORMATION:

    The Department is issuing this rule in conformance with Executive 
Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. It is not intended to have a retroactive effect. 
This rule would not preempt any state or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of this rule.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (5 U.S.C. 601 et. seq.), the Administrator of the 
Agricultural Marketing Service (AMS) has determined that this action 
would not have a significant economic impact on a substantial number of 
small entities. This proposed rule for the revision of the Regulations 
governing inspection, certification and standards for fresh fruits, 
vegetables and other products will not impose substantial direct 
economic cost, recordkeeping, or personnel workload changes on small 
entities, and will not alter the market share or competitive position 
of these entities relative to large businesses.
    The regulations were last revised in November 1992. The proposed 
rule reflects fees needed to offset the cost of developing and 
maintaining U.S. grade standards for fresh fruits and vegetables 
previously funded through an appropriation and to recover the costs of 
Federal fruit and vegetable inspection service at destination markets 
rendered in accordance with the AMA of 1946.
    In the Agriculture Appropriations Bill for fiscal year 1994, 
Congress directed AMS to establish a user fee program, pursuant to 31 
U.S.C. 9701, to recover the cost of developing, reviewing, and 
maintaining agricultural commodity standards that describe product 
quality attributes. This proposal would amend the schedule for fees and 
charges for services rendered to users at destination markets to 
recover the portion of the cost for fresh fruit and vegetable 
standardization that is applicable to these users.
    The AMA authorizes voluntary official inspection, grading, and 
certification on a user-fee basis, of fresh fruits, vegetables, and 
other products such as raw nuts, Christmas trees, and flowers. The AMA 
provides that reasonable fees be collected from the user of the program 
services to cover as nearly as practicable the costs of services 
rendered. The program seeks to maintain an unobligated balance that is 
at least equal to 4 months of operating expense. The unobligated 
balance for the Federal inspection service at destination markets at 
the end of fiscal year 1993 was 1.1 months of operating expense. 
Approximately $240,000 in increases are expected in the cost the 
service pays for General Services Administration office rent and 
Federal Telecommunications Service, and a $120,000 increase is expected 
for the cost of implementing a locality-based pay system in January 
1994. The service plans to implement cost-cutting actions during fiscal 
year 1994 that are expected to save approximately $350,000 each fiscal 
year beginning in fiscal year 1995. These cost-cutting actions will 
offset some of the expected increases in service costs; however, 
further action is necessary to meet all rising costs and for the 
program's unobligated balance to grow to the 4 month level necessary to 
provide contingency funding.
    AMS regularly reviews this program to determine if fees are 
adequate. The last fee change was effective on November 12, 1992 (57 FR 
48929). With the planned cost-cutting actions, but without a fee 
increase, the unobligated balance of this program is expected to 
decrease to seven-tenths of a month by the end of fiscal year 1994 and 
to two-tenths of a month by the end of fiscal year 1995.
    Based on the program's need to offset various rising expenses, to 
increase its unobligated balance, and to incorporate user-fee funding 
for standardization activities, AMS proposes to increase the fees for 
destination market inspection services. Additionally, regulations would 
be added or clarified to (1) establish a new inspection fee for 50 
packages or less of the same product; (2) reflect the lower level of 
effort typically required to inspect small lots compared to that 
required for half carlot equivalent lots with 500 to 1,000 packages; 
(3) charge for waiting time at the prevailing hourly rate when an 
inspection is delayed because product is not available or readily 
accessible; and (4) apply dock-side inspection fees to cases where the 
applicant offers the product to AMS for inspection at the dock-side 
facility but AMS chooses to inspect the product at another location.
    The following table compares current fees and charges with proposed 
fees and charges for fresh fruit and vegetable inspection as found in 7 
CFR 51.38. Unless otherwise provided for by regulation or written 
agreement between the applicant and the Administrator, the charges in 
the schedule of fees as found in Sec. 51.38 are:

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                               Service                                       Current              Proposed      
----------------------------------------------------------------------------------------------------------------
Quality and condition inspections of one to four products each in                                               
 quantities of 51 or more packages and unloaded from the same land                                              
 or air conveyance:                                                                                             
    Over a half carlot equivalent of each product...................  $68.................  $74                 
    Half carlot equivalent or less of each product..................  57..................  62                  
    For each additional lot of the same product.....................  11..................  12                  
Condition inspections of one to four products each in quantities of                                             
 51 or more packages and unloaded from the same land or air                                                     
 conveyance:                                                                                                    
    Over a half carlot equivalent of each product...................  57..................  62                  
    Half carlot equivalent or less of each product..................  52..................  57                  
    For each additional lot of the same product.....................  11..................  12                  
Inspections of five or more products each in quantities of 51 or                                                
 more packages and unloaded from the same land or air conveyance:                                               
    For the first five products.....................................  242.................  264                 
    For each additional product.....................................  11..................  37                  
    For each additional lot of any product..........................  11..................  12                  
Inspections of products each in quantities of 50 or less packages                                               
 unloaded from the same land or air conveyance:                                                                 
    For each product................................................  57 (52 for condition  37                  
                                                                       only).                                   
    For each additional lot of any product..........................  11..................  12                  
Dock-side inspections of an individual product unloaded directly                                                
 from the same ship:                                                                                            
    For each package weighing less than 15 pounds...................  1 cent..............  1.1 cents           
    For each package weighing 15 to 29 pounds.......................  2 cents.............  2.2 cents           
    For each package weighing 30 or more pounds.....................  3 cents.............  3.3 cents           
    Minimum charge per individual product...........................  68..................  74                  
    Inspections performed for other purposes during the grader's      34.00 per hour......  37.00 per hour      
     regularly scheduled work week.                                                                             
    Overtime or holiday premium rate for all inspections performed    17.00 per hour......  18.50 per hour      
     outside the grader's regularly scheduled work week.                                                        
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List of Subjects in 7 CFR Part 51

    Agricultural commodities, Food grades and standards, Fruits, Nuts, 
Reporting and recordkeeping requirements, Vegetables.

    For the reasons set forth in the preamble, 7 CFR part 51 is 
proposed to be amended as follows:

PART 51--[AMENDED]

    1. The authority citation for 7 CFR part 51 is revised to read as 
follows:

    Authority: 7 U.S.C. 1622, 1624.

    2. Section 51.38 is revised to read as follows:


Sec. 51.38  Basis for fees and rates.

    (a) When performing inspections of product unloaded directly from 
land or air transportation, charges shall be determined on the 
following basis:
    (1) For products in quantities of 51 or more packages:
    (i) Quality and condition inspection of 1 to 4 products unloaded 
from the same conveyance:
    (A) $74 for over a half carlot equivalent of an individual product.
    (B) $62 for a half carlot equivalent or less of an individual 
product.
    (C) $12 for each additional lot identified on an inspection 
certificate for the same product.
    (ii) Condition only inspection of 1 to 4 products unloaded from the 
same conveyance:
    (A) $62 for over a half carlot equivalent of an individual product.
    (B) $57 for a half carlot equivalent or less of an individual 
product.
    (C) $12 for each additional lot identified on an inspection 
certificate for the same product.
    (iii) Quality and condition inspection and/or condition only 
inspection of 5 or more products unloaded from the same conveyance:
    (A) $264 for the first 5 products.
    (B) $37 for each additional product.
    (C) $12 for each additional lot identified on an inspection 
certificate for any of the products.
    (2) For quality and condition inspection and/or condition only 
inspection of products in quantities of 50 or less packages unloaded 
from the same conveyance:
    (i) $37 for each individual product.
    (ii) $12 for each additional lot identified on an inspection 
certificate for any product.
    (b) When performing inspections of palletized products unloaded 
directly from sea transportation or when palletized product is first 
offered for inspection before being transported from the dock-side 
facility, charges shall be determined on the following basis:
    (1) On a package basis, with a minimum charge of $74 for each 
product inspected, according to the following rates:
    (i) 1.1 cents per package weighing less than 15 pounds;
    (ii) 2.2 cents per package weighing 15 to 29 pounds; and
    (iii) 3.3 cents per package weighing 30 or more pounds.
    (2) On a carlot basis in accordance with Sec. 51.38(a) for products 
in sea containers, or when product is first offered for inspection 
after being transported from the dock-side facility. If palletized 
products are not offered for inspection at dock-side, the carlot fees 
in Sec. 51.38(a) shall apply.
    (c) When performing inspections for Government agencies, or for 
purposes other than those prescribed in the preceding paragraphs 
including weight-only and freezing-only inspections, fees for 
inspection shall be based on the time consumed by the grader in 
connection with such inspections, computed at a rate of $37.00 an hour: 
Provided, That:
    (1) Charges for time shall be rounded to the nearest half hour;
    (2) The minimum fee shall be two hours for weight-only inspections, 
and one-half hour for other inspections;
    (3) When weight certification is provided in addition to quality 
and/or condition inspection, a one-hour charge shall be added to the 
carlot fee.
    (4) When inspections are performed to certify product compliance 
for Defense Personnel Support Centers, the daily or weekly charge shall 
be determined by multiplying the total hours consumed to conduct 
inspections by the hourly rate. The daily or weekly charge shall be 
prorated among applicants by multiplying the daily or weekly charge by 
the percentage of product passed and/or failed for each applicant 
during that day or week. Waiting time and overtime charges shall be 
charged directly to the applicant responsible for their incurrence.
    (d) When performing inspections at the request of the applicant 
during periods which are outside the grader's regularly scheduled work 
week, a charge for overtime or holiday work shall be made at the rate 
of $18.50 per hour or portion thereof in addition to the carlot 
equivalent fee, package charge, or hourly charge specified in this 
subpart. Overtime or holiday charges for time shall be rounded to the 
nearest half hour.
    (e) When an inspection is delayed because product is not available 
or readily accessible, a charge for waiting time shall be made at the 
prevailing hourly rate in addition to the carlot equivalent fee, 
package charge, or hourly charge specified in this subpart. Waiting 
time shall be rounded to the nearest half hour.

    Dated: February 15, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-4121 Filed 2-23-94; 8:45 am]
BILLING CODE 3410-02-P