[Federal Register Volume 59, Number 40 (Tuesday, March 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4593]


[[Page Unknown]]

[Federal Register: March 1, 1994]


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


DEPARTMENT OF AGRICULTURE
9 CFR Part 92

[Docket No. 91-165-2]
RIN 0579-AA56

 

Harry S Truman Animal Import Center (HSTAIC); Exclusive Use

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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

SUMMARY: We are amending the regulations governing the use of the Harry 
S Truman Animal Import Center (HSTAIC): To require a $32,000 deposit in 
the form of a certified check or money order, payable in U.S. funds, 
for each application; to change the application and lottery dates; to 
require the lottery winner to pay the costs of maintaining HSTAIC for 
certain periods when it is reserved for the lottery winner and not 
available to other importers; to state that we will not accept 
applications from or enter into HSTAIC cooperative-service agreements 
with persons with outstanding debts to the Animal and Plant Health 
Inspection Service; and to discontinue the practice of ``tiering'' the 
lottery that currently gives certain categories of animals priority to 
use HSTAIC. These changes are necessary to discourage frivolous 
applications, to help ensure that there is adequate time to assemble 
necessary information prior to each lottery, and to minimize financial 
losses incurred by the Animal and Plant Health Inspection Service.

EFFECTIVE DATE: This regulation is effective August 31, 1994. This rule 
will first apply to the lottery to be held in 1994 for importations 
during calendar year 1995, then to all subsequent lotteries.

FOR FURTHER INFORMATION CONTACT: Dr. David Vogt, Staff Veterinarian, 
Import Export Animals Staff, National Center for Import-Export, 
Veterinary Services, APHIS, USDA, room 767, Federal Building, 6505 
Belcrest Road, Hyattsville, MD 20782, 301-436-8172.

SUPPLEMENTARY INFORMATION:

Background

    The regulations in 9 CFR part 92, subparts D and E, govern the 
importation of animals into the United States through the Harry S 
Truman Animal Import Center (HSTAIC) in Fleming Key, Florida. Under the 
regulations, the Animal and Plant Health Inspection Service (APHIS) 
holds an annual lottery to allocate space in HSTAIC for each calendar 
year. To participate in the lottery, prospective importers must submit 
an application for each importation.
    On July 14, 1993, we published in the Federal Register (58 FR 
37878-37884, Docket No. 91-165-1) a proposal to amend the regulations: 
(1) To require a $32,000 deposit in the form of a certified check or 
money order, payable in U.S. funds, for each application; (2) to change 
the application and lottery dates; (3) to require the lottery winner to 
pay the costs of maintaining HSTAIC for certain periods when it is 
reserved for the lottery winner and not available to other importers; 
(4) to state that we will not accept applications from or enter into 
HSTAIC cooperative-service agreements with persons with outstanding 
debts to APHIS; and (5) to discontinue the practice of ``tiering'' the 
lottery that currently gives certain categories of animals priority to 
use HSTAIC. We proposed to apply the changes to the regulations first 
to the lottery to be held in 1994 for importations during calendar year 
1995.
    We solicited comments concerning our proposal for a 60-day period 
ending September 13, 1993. We received one comment by that date, from 
an importer who expressed concerns regarding certain provisions of the 
proposed rule. We carefully considered this comment and discuss it 
below.
    In our proposal, we proposed to require that applicants for the 
HSTAIC lottery deposit with APHIS $32,000 in the form of a certified 
check or money order payable in U.S. funds prior to the date of the 
lottery. This provision was proposed as a replacement for the existing 
requirement that an application for the lottery be accompanied by a 
deposit in the form of a $50,000 irrevocable letter of credit. We 
proposed the change to allow small businesses to compete more equitably 
with large importers, who can more easily obtain multiple letters of 
credit for multiple applications.
    The commenter disagreed that the proposed change would benefit 
small importers. According to the commenter, under the requirement for 
a $50,000 letter of credit, a small importer would be most likely 
either to utilize his or her credit line with a bank, or to post the 
funds in a certificate of deposit and borrow against those funds for a 
letter of credit. According to the commenter, if the latter option were 
chosen, the applicant would pay the financial institution only the 
difference between the rate of return on the certificate of deposit and 
the lending rate. The commenter stated that the proposed change would 
make it more difficult for a small importer to submit multiple 
applications, by tying up the importer's funds with USDA for up to a 
year with no interest, and removing those funds from the bank, thereby 
reducing the importer's collateral.
    We are making no changes based on the comment. While we agree that 
a $32,000 deposit represents more of a financial commitment than a 
$50,000 letter of credit, we disagree that the proposed change would be 
less advantageous to small importers than are the existing regulations. 
We continue to believe, as we stated in the proposal, that large 
importers, because of their stronger credit and deposit relationship 
with banks, can obtain letters of credit significantly more easily than 
can small importers. Our experience with the HSTAIC lottery has been 
that a number of these multiple applications have been frivolous, with 
the applicants having no intention of using their ``winning'' slots in 
the lottery to import animals. We expect that requiring a $32,000 
deposit in the form of a check or money order will reduce the number of 
multiple applications received and will minimize frivolous 
applications.
    Although we expect significantly fewer applications under the new 
regulations, we anticipate that the applications that are received will 
in most cases be from applicants actually intending to import animals 
through HSTAIC. With fewer applicants in the lottery, and with those 
that are chosen serious about importing animals, applicants will have a 
better idea than at present what their chances are of importing animals 
through HSTAIC in a given year. This will enable the applicants to 
decide whether it is worthwhile to leave their deposit with APHIS after 
the lottery results are announced. Those that have little chance of 
importing animals could choose to withdraw their money shortly after 
the lottery.
    The commenter also expressed concern that the proposed requirement 
that the lottery winner pay the costs of maintaining HSTAIC for certain 
periods when it is reserved for the lottery winner and not available to 
other importers would put the winner of the lottery at a disadvantage 
compared to the applicants drawn later in the lottery. Under the 
provisions of the proposal, we would draw upon the $32,000 deposit of 
the winner of the lottery from the day the winner receives a 
cooperative-service agreement for the use of HSTAIC from us, and we 
would continue drawing on it either until we receive a signed 
cooperative-service agreement from the applicant or until the applicant 
provides written notification to us that he or she does not intend to 
sign the cooperative-service agreement, up to a maximum of 30 days.
    The commenter stated that this provision would require the winner 
of the lottery to rush to put his or her import together, while the 
third or fourth applicants chosen would have extra time while we 
negotiate with the applicants chosen earlier in the lottery. According 
to the commenter, it is impossible for any importer to determine the 
feasibility of a high security animal import in less than 30 days.
    We are making no changes based on this comment. The very purpose of 
the proposed change was to discourage applicants who are not seriously 
considering importing animals through HSTAIC, and therefore to minimize 
unnecessary ``downtime'' at HSTAIC. We believe that applicants 
seriously interested in importing animals through HSTAIC should already 
have closely examined the feasibility of a particular importation 
before submitting an application. Further, once the cooperative-service 
agreement is signed, the importer has 42 days to complete arrangements 
with responsible officials in the country from which the animals are to 
be exported. We consider this a reasonable period of time to make such 
arrangements.
    Therefore, based on the rationale set forth in the proposed rule 
and in this document, we are adopting the provisions of the proposal as 
a final rule with only minor nonsubstantive changes.

Executive Order 12866 and Regulatory Flexibility Act

    We are issuing this rule in conformance with Executive Order 12866. 
Based on information compiled by the Department, we have determined 
that this rule: (1) Will have an effect on the economy of less than 
$100 million; (2) will not adversely affect in a material way the 
economy, a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (3) will not create a serious inconsistency 
or otherwise interfere with an action taken or planned by another 
agency; (4) will not alter the budgetary impact of entitlements, 
grants, user fees, or loan programs or rights and obligations of 
recipients thereof; and (5) will not raise novel legal or policy issues 
arising out of legal mandates, the President's priorities, or 
principles set forth in Executive Order 12866.
    In the past we have received approximately 230 applications to use 
HSTAIC during a particular calendar year. However, many of these 
applications were duplicative. Therefore, when the provisions in this 
rule become effective, we expect that number to drop significantly. 
Although we cannot determine precisely how many importers will submit 
applications, based on past experience we believe only approximately 5 
percent will be small entities.
    We expect that requiring a deposit of $32,000 in the form of a 
certified check or money order with each application will reduce the 
number of multiple applications by large importers and discourage 
applications from importers who are not sure whether they will use 
HSTAIC. We expect this final rule to have the ultimate effect of 
increasing the possibility that small entities will use HSTAIC.
    The regulations prior to the effective date of this rule require 
that applicants for the importation of certain animals through HSTAIC 
deposit an irrevocable letter of credit for $50,000. Requiring a 
deposit in the form of a certified check or money order will have an 
impact on potential importers, in that earnings will be foregone on the 
deposit while it is held by APHIS. Under this rule, the deposit will 
have to be ``received by APHIS at least 7 calendar days prior to the 
date of the lottery.'' Prospective importers can minimize the time 
their money is on deposit by submitting their deposit as close to this 
deadline as possible. We have calculated that, based on a rate of 
return of from 5-7 percent, the interest foregone on a deposit will be 
approximately $4.10 to $6.15 per day. The minimum amount of time 
applicants will forego interest will be for the week before the lottery 
and for at least one week following the lottery until notification of 
the lottery results. Therefore, all applicants will forego 
approximately $61.60 to $86.10 in interest. This compares with an 
average cost to import one animal through HSTAIC of $3,747.
    Of the parties that will submit applications for importations 
through HSTAIC in 1995, most of whom will probably not be small 
entities, we expect that only approximately 5 will be picked high 
enough in the lottery to provide them a reasonable chance of bringing 
animals through HSTAIC. If these applicants choose to stay on the 
lottery list, they will lose interest for each day they remain on the 
list until their deposit is applied toward an importation, or until 
they choose to remove their name from the list. How long they remain on 
the list will be their decision, and we are unable to calculate at this 
time the interest they will forego.
    Changing application and lottery dates will impose no financial 
burden on prospective importers. The current regulations require that 
importers wishing to import in the next calendar year submit their 
application no earlier than September 1 and no later than September 15 
for the lottery held during the first seven days of October of the 
current calendar year. Shifting these dates to October and December, 
respectively, would likely shorten the waiting period between 
application and actual import dates.
    Requiring the lottery winner to pay the costs of maintaining HSTAIC 
for periods when it is maintained in readiness for that importer, and 
not available to other importers, will shift the burden of operating 
costs from APHIS, and ultimately the taxpayer, to persons offered the 
right to use HSTAIC. According to the regulations prior to the 
effective date of this rule, a lottery winner has 30 days from the date 
of the receipt of the cooperative-service agreement to either accept or 
reject the cooperative-service agreement regarding the importation of 
animals. During that time, the facility is reserved, and APHIS prepares 
and maintains it in readiness for that importer's animals. Charging the 
importer for this time, on a daily basis, will increase the importer's 
costs by approximately $1,067 per day, up to a maximum of $32,000. This 
compares with an average total cost for an importation through HSTAIC 
of $857,000. The length of time that expires before the cooperative-
service agreement is accepted or rejected will be up to the lottery 
winner.
    Under this rule, APHIS will not accept applications from, or enter 
into HSTAIC cooperative-service agreements with, entities with 
outstanding debts to APHIS. If a prospective applicant has not paid 
outstanding debts, they will not be allowed to use HSTAIC. However, 
this provision will not necessarily impose a financial burden on 
prospective applicants because the decision whether to pay off debts 
will be entirely the prospective applicant's.
    We are also eliminating the practice of giving certain types of 
animals, and animals from certain locations, priority in the lottery. 
This amendment, which will simplify the drawing for the lottery, will 
not affect a substantial number of importers. In the past we have 
received approximately 230 applications to use HSTAIC during a 
particular year. As stated above, we expect fewer applicants when this 
rule takes effect. Of the total number of applicants, only two to three 
will actually be able to use HSTAIC in any given year. Additionally, as 
we stated above, we expect the great majority of applicants to be other 
than small entities, so the chances are small that each of the two or 
three importers using HSTAIC will be small entities.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this rule will not 
have a significant economic impact on a substantial number of small 
entities.

Executive Order 12778

    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. This rule: (1) Preempts all State and local laws and 
regulations that are inconsistent with this rule; (2) has no 
retroactive effect; and (3) does not require administrative proceedings 
before parties may file suit in court challenging this rule.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
3501 et seq.), the information collection or recordkeeping requirements 
included in this rule will be submitted for approval to the Office of 
Management and Budget.

List of Subjects in 9 CFR Part 92

    Animal diseases, Imports, Livestock, Poultry and poultry products, 
Quarantine, Reporting and recordkeeping requirements.
    Accordingly, 9 CFR part 92 is amended as follows:

PART 92--IMPORTATION OF CERTAIN ANIMALS AND POULTRY AND CERTAIN 
ANIMAL AND POULTRY PRODUCTS; INSPECTION AND OTHER REQUIREMENTS FOR 
CERTAIN MEANS OF CONVEYANCE AND SHIPPING CONTAINERS THEREON

    1. The authority citation for part 92 continues to read as follows:

    Authority: 7 U.S.C. 1622; 19 U.S.C. 1306; 21 U.S.C. 102-105, 
111, 114a, 134a, 134b, 134c, 134d, 134f, 135, 136 and 136a; 31 
U.S.C. 9701; 7 CFR 2.17, 2.51, and 371.2(d).


Sec. 92.430  [Amended]

    2. Section 92.430 is amended as follows:
    a. Paragraph (a) is amended by adding, immediately after the first 
sentence, ``Applications for the HSTAIC lottery will not be accepted 
from, and a cooperative-service agreement to use HSTAIC will not be 
offered to or entered into with, any person who has debts owing to 
APHIS that have not been paid by the date specified in APHIS's original 
billing notification to the person. Any person who has debts owing to 
APHIS that have not been paid by the date specified in APHIS's original 
billing notification to that person will be removed from the current 
priority list.''
    b. Paragraph (a) is amended by adding, immediately after the fourth 
sentence, ``The animal qualification process begins on the date the 
cooperative-service agreement is delivered to the address listed on the 
importer's HSTAIC application, for the importer's signature, if HSTAIC 
is not available to other importers, up to a maximum of 30 days. A 
cooperative-service agreement will be deemed to have been delivered 
when the importer signs the U.S. Postal Service domestic return 
receipt, or the importer refuses delivery of the cooperative-service 
agreement by the U.S. Postal Service, or the cooperative-service 
agreement is returned by the U.S. Postal Service as either unclaimed or 
undeliverable.''
    c. Paragraph (b)(1)(ii) is revised to read as set forth below.
    d. Paragraph (b)(2)(i) is amended by removing ``October'' both 
times it appears, and by adding ``December'' in its place; and by 
removing ``September'' where it appears in the second sentence, and 
adding ``October'' in its place.
    e. In paragraph (b)(2)(i), footnote 12 is amended by removing 
``October'' and adding ``December'' in its place.
    f. Paragraph (b)(2)(ii) is amended by removing the last sentence 
and adding in its place ``Deposits required by paragraph (b)(1)(ii) of 
this section must be received by APHIS at least 7 calendar days prior 
to the date of the lottery.''
    g. Paragraph (b)(3)(i) is removed.
    h. Paragraph (b)(3)(ii) is redesignated as paragraph (b)(3) and is 
revised to read as set forth below.
    i. Paragraph (b)(4) is amended by revising the first sentence to 
read as set forth below; removing ``October'' in the fifth sentence and 
adding ``December'' in its place; and removing ``September'' where it 
appears in the fifth and sixth sentences, and adding ``October'' in its 
place.
    j. Paragraph (b)(5) is amended by removing ``October'' both times 
it appears and adding ``December'' in its place; and by removing 
``September'' both times it appears and adding ``October'' in its 
place.
    k. In paragraph (b)(6), the second sentence is amended by removing 
``, in lieu of an irrevocable letter of credit,''; and by removing 
``$50,000'' and adding ``$32,000 by certified check or money order, 
payable in U.S. funds'' in its place.
    l. In paragraph (b)(6), footnote 13 is amended by removing 
``September'' and adding ``October'' in its place.
    m. In paragraph (c) introductory text, the third and fourth 
sentences are revised to read as set forth below, and the fifth 
sentence is removed.
    n. In paragraph (c)(1), the second sentence is amended by adding 
``any portion of'' immediately before ``the importer's deposit'' and by 
adding ``that has not been expended'' immediately before the period.
    o. In paragraph (c)(3), the second sentence is amended by adding 
``expenses for preparing and maintaining HSTAIC in readiness for the 
importation;'' immediately after ``must assume responsibility 
includes:''.
    p. In paragraph (d), sample cooperative-service agreement, under 
``The importer agrees:'', paragraph 2 is revised to read as set forth 
below.
    q. In paragraph (d), sample cooperative-service agreement, under 
``The importer agrees:'', paragraph 3 is removed, and paragraphs 4 
through 13 are redesignated as paragraphs 3 through 12, respectively.
    r. In paragraph (d), sample cooperative-service agreement, under 
``The importer agrees:'', redesignated paragraph 4, the first sentence 
is amended by adding ``preparing and maintaining HSTAIC in readiness 
for the importation, and to'' immediately after ``all costs (except 
capital expenditures at HSTAIC) attributable to''.
    s. In paragraph (d), sample cooperative-service agreement, under 
``The importer agrees:'', redesignated paragraph 12 is revised to read 
as set forth below.


Sec. 92.430   Importation of ruminants through the Harry S Truman 
Animal Import Center (HSTAIC).

* * * * *
    (b) * * *
    (1) * * *
    (ii) Each applicant for the importation of animals through HSTAIC 
must make a deposit of $32,000 in the form of a certified check or 
money order, payable in U.S. funds. The deposit of each applicant who 
is not given the opportunity to use HSTAIC will be returned to the 
applicant at the end of the calendar year of the prospective 
importation, or whenever the applicant removes his or her name from the 
priority list described in paragraph (b)(4) of this section. The Animal 
and Plant Health Inspection Service will draw on the deposit of the 
applicant whose application is selected, to pay for the costs of 
preparing and maintaining HSTAIC in readiness for the applicant's 
animals. A charge of $1,067 will be made for each day that HSTAIC is 
not available to another importer, starting on the date the 
cooperative-service agreement is delivered to the address listed on the 
importer's HSTAIC application, and ending either with the day that 
APHIS receives the signed cooperative-service agreement or the day the 
applicant notifies APHIS in writing that he or she does not intend to 
sign the cooperative-service agreement, up to a maximum of 30 days. A 
cooperative-service agreement will be deemed to have been delivered 
when the importer signs the U.S. Postal Service domestic return 
receipt, or refuses delivery of the cooperative-service agreement by 
the U.S. Postal Service, or the cooperative-service agreement is 
returned by the U.S. Postal Service as either unclaimed or 
undeliverable.
* * * * *
    (3) The priority list established by the annual December lottery 
will remain effective from January 1 through December 31 of the next 
calendar year, superseding all previous lists. Which year's list is 
used is governed by the date exclusive use of HSTAIC is offered and not 
by the date the applicant's animals are scheduled to arrive at HSTAIC.
    (4) The names of all applicants whose applications have reached the 
Import-Export Animals Staff, Veterinary Services, no earlier than 
October 1 and no later than October 15 (see paragraphs (b)(1) and (2) 
of this section), and whose deposits have reached APHIS at least 7 
calendar days prior to the date of the lottery, will be drawn during 
the December lottery. * * *
* * * * *
    (c) * * * The cooperative-service agreement must be accompanied by 
a certified check or money order, or an irrevocable letter of credit 
(the letter of credit having an effective date 90 days after the 
animals' scheduled release date from HSTAIC), payable in U.S. funds, 
for the amount specified in the cooperative-service agreement. Any 
funds remaining from the $32,000 deposit will be applied to the 
quarantine costs, and will be deducted from the balance due with the 
cooperative-service agreement. * * *
* * * * *
    (d) * * *

    The importer agrees:
* * * * *
    2. To remit with the cooperative-service agreement a certified 
check, money order, or irrevocable letter of credit having an 
effective date that extends 90 days beyond the animals' scheduled 
release from HSTAIC, payable in U.S. funds to the United States 
Department of Agriculture, Animal and Plant Health Inspection 
Service, in the amount of $____________. (This amount represents the 
estimated cost (except capital expenditures at HSTAIC) of qualifying 
the animals for importation through HSTAIC, less any unused portion 
of the $32,000 deposited in conjunction with the application for the 
exclusive right to use HSTAIC.
* * * * *
    12. To pay, upon receipt, post-quarantine billings incurred 
during this importation, for costs exceeding the amount remitted 
with this cooperative-service agreement plus the initial $32,000 
deposit.
* * * * *


Sec. 92.522   [Amended]

    3. Section 92.522 is amended as follows:
    a. Paragraph (a) is amended by adding, immediately after the first 
sentence, ``Applications for the HSTAIC lottery will not be accepted 
from, and a cooperative-service agreement to use HSTAIC will not be 
offered to or entered into with, any person who has debts owing to 
APHIS that have not been paid by the date specified in APHIS's original 
billing notification to the person. Any person who has debts owing to 
APHIS that have not been paid by the date specified in APHIS's original 
billing notification to that person will be removed from the current 
priority list.''
    b. Paragraph (a) is amended by adding, immediately after the fourth 
sentence, ``The animal qualification process begins on the date the 
cooperative-service agreement is delivered to the address listed on the 
importer's HSTAIC application, for the importer's signature, if HSTAIC 
is not available to other importers, up to a maximum of 30 days. A 
cooperative-service agreement will be deemed to have been delivered 
when the importer signs the U.S. Postal Service domestic return 
receipt, or the importer refuses delivery of the cooperative-service 
agreement by the U.S. Postal Service, or the cooperative-service 
agreement is returned by the U.S. Postal Service as either unclaimed or 
undeliverable.''
    c. Paragraph (b)(1)(ii) is revised to read as set forth below.
    d. Paragraph (b)(2)(i) is amended by removing ``October'' both 
times it appears and adding ``December'' in their place; and by 
removing ``September'' both times it appears in the second sentence, 
and adding ``October'' in its place.
    e. In paragraph (b)(2)(i), footnote 11 is amended by removing 
``October'' and adding ``December'' in its place.
    f. Paragraph (b)(2)(ii) is amended by removing the last sentence 
and adding in its place ``Deposits required by paragraph (b)(1)(ii) of 
this section must be received by APHIS at least 7 calendar days prior 
to the date of the lottery.''
    g. Paragraph (b)(3)(i) is removed.
    h. Paragraph (b)(3)(ii) is redesignated as paragraph (b)(3) and is 
revised to read as set forth below.
    i. Paragraph (b)(4) is amended by revising the first sentence to 
read as set forth below; removing ``October'' in the fifth sentence and 
adding ``December'' in its place; and removing ``September'' where it 
appears in the fifth and sixth sentences and adding ``October'' in its 
place.
    j. Paragraph (b)(5) is amended by removing ``October'' both times 
it appears and adding ``December'' in its place; and by removing 
``September'' both times it appears and adding ``October'' in its 
place.
    k. In paragraph (b)(6), the second sentence is amended by removing 
``, in lieu of an irrevocable letter of credit,''; and by removing 
``$50,000'' and adding ``$32,000 by certified check or money order, 
payable in U.S. funds'' in its place.
    l. In paragraph (b)(6), footnote 12 is amended by removing 
``September'' and adding ``October'' in its place.
    m. In paragraph (c) introductory text, the third and fourth 
sentences are revised to read as set forth below, and the fifth 
sentence is removed.
    n. In paragraph (c)(1), the second sentence is amended by adding 
``any portion of'' immediately before ``the importer's deposit'' and by 
adding ``that has not been expended'' immediately before the period.
    o. In paragraph (c)(3), the second sentence is amended by removing 
the word ``Expenses'' and adding in its place ``expenses''; and by 
adding ``Expenses for preparing and maintaining HSTAIC in readiness for 
the importation;'' immediately after ``must assume responsibility 
includes:''.
    p. In paragraph (d), sample cooperative-service agreement, under 
``The importer agrees:'', paragraph 2 is revised to read as set forth 
below.
    q. In paragraph (d), sample cooperative-service agreement, under 
``The importer agrees:'', paragraph 3 is removed and paragraphs 4 
through 13 are redesignated as paragraphs 3 through 12, respectively.
    r. In paragraph (d), sample cooperative-service agreement, under 
``The importer agrees:'', redesignated paragraph 4, the first sentence 
is amended by adding ``preparing and maintaining HSTAIC in readiness 
for the importation, and to'' immediately after ``all costs (except 
capital expenditures at HSTAIC) attributable to''.
    s. In paragraph (d), sample cooperative-service agreement, under 
``The importer agrees:'', redesignated paragraph 12 is revised to read 
as set forth below.


Sec. 92.522   Importation of swine through the Harry S Truman Animal 
Import Center (HSTAIC).

* * * * *
    (b) * * *
    (1) * * *
    (ii) Each applicant for the importation of animals through HSTAIC 
must make a deposit of $32,000 in the form of a certified check or 
money order, payable in U.S. funds. The deposit of each applicant who 
is not given the opportunity to use HSTAIC will be returned to the 
applicant at the end of the calendar year of the prospective 
importation, or whenever the applicant removes his or her name from the 
priority list described in paragraph (b)(4) of this section. The Animal 
and Plant Health Inspection Service will draw on the deposit of the 
applicant whose application is selected, to pay for the costs of 
preparing and maintaining HSTAIC in readiness for the applicant's 
animals. A charge of $1,067 will be made for each day HSTAIC is not 
available to another importer, starting on the date the cooperative-
service agreement is delivered to the address listed on the HSTAIC 
application, and ending either with the day that APHIS receives a 
signed cooperative-service agreement from the applicant or the day the 
applicant notifies APHIS in writing that he or she does not intend to 
sign the cooperative-service agreement, up to a maximum of 30 days. A 
cooperative-service agreement will be deemed to have been delivered 
when the importer signs the U.S. Postal Service domestic return 
receipt, or refuses delivery of the cooperative-service agreement by 
the U.S. Postal Service, or the cooperative-service agreement is 
returned by the U.S. Postal Service as either unclaimed or 
undeliverable.
* * * * *
    (3) The priority list established by the annual December lottery 
will remain effective from January 1 through December 31 of the next 
calendar year, superseding all previous lists. Which year's list is 
used is governed by the date exclusive use of HSTAIC is offered, and 
not by the date the applicant's animals are scheduled to arrive at 
HSTAIC.
    (4) The names of all applicants whose applications have reached the 
Import-Export Animals Staff, Veterinary Services, no earlier than 
October 1 and no later than October 15 (see paragraphs (b) (1) and (2) 
of this section), and whose deposits have reached APHIS at least 7 days 
prior to the date of the lottery, will be drawn during the December 
lottery. * * *
* * * * *
    (c) * * * The cooperative-service agreement must be accompanied by 
a certified check, a money order, or an irrevocable letter of credit 
(the letter of credit having an effective date 90 days after the 
animals' scheduled release date from HSTAIC), payable in U.S. funds, 
for the amount specified in the cooperative-service agreement. Any 
funds remaining from the $32,000 deposit will be applied to the 
quarantine costs, and will be deducted from the balance due with the 
cooperative-service agreement. * * *
* * * * *
    (d) * * *

    The importer agrees:
* * * * *
    2. To remit with the cooperative-service agreement a certified 
check, money order, or irrevocable letter of credit having an 
effective date that extends 90 days beyond the animals' scheduled 
release from HSTAIC, payable in U.S. funds to the United States 
Department of Agriculture, Animal and Plant Health Inspection 
Service, in the amount of $____________. (This amount represents the 
estimated cost (except capital expenditures at HSTAIC) of qualifying 
the animals for importation through HSTAIC, less any unused portion 
of the $32,000 deposited in conjunction with the application for the 
exclusive right to use HSTAIC.)
* * * * *
    12. To pay, upon receipt, post-quarantine billings incurred 
during this importation, for costs exceeding the amount remitted 
with this cooperative-service agreement plus the initial $32,000 
deposit.
* * * * *
    Done in Washington, DC, this 18th day of February 1994.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Inspection Services.
[FR Doc. 94-4593 Filed 2-28-94; 8:45 am]
BILLING CODE 3410-34-P