[Federal Register Volume 59, Number 92 (Friday, May 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11491]


[[Page Unknown]]

[Federal Register: May 13, 1994]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 1230

RIN 0581-AB17
[No. LS-94-002]

 

Pork Promotion and Research

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer 
Information Act (Act) of 1985 and the Order issued thereunder, this 
proposed rule would increase the amount of the assessment per pound due 
on imported pork and pork products to reflect an increase in the 1993 
six market average price for domestic barrows and gilts. This proposed 
action would bring the equivalent market value of the live animals from 
which such imported pork and pork products were derived in line with 
the market values of domestic porcine animals. This proposed rule also 
would revise the Harmonized Tariff System (HTS) numbers which identify 
imported live porcine animals, pork, and pork products to conform with 
recent changes in these numbers made by the United States Customs 
Service (USCS). These proposed changes will facilitate the continued 
collection of assessments on imported porcine animals, pork, and pork 
products.

DATES: Comments must be received by June 13, 1994.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief; 
Marketing Programs Branch; Livestock and Seed Division; Agricultural 
Marketing Service (AMS), USDA, room 2624-S; P.O. Box 96456; Washington, 
DC 20090-6456. Comments will be available for public inspection during 
regular business hours at the above office in room 2624 South Building; 
14th and Independence Avenue, SW.; Washington, DC.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing 
Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION: The Department is issuing this proposed rule 
in conformance with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This proposal is not intended to have a 
retroactive effect. The Act states that the statute is intended to 
occupy the field of promotion and consumer education involving pork and 
pork products and of obtaining funds thereof from pork producers and 
that the regulation of such activity (other than a regulation or 
requirement relating to a matter of public health or the provision of 
State or local funds for such activity) that is in addition to or 
different from the Act may not be imposed by a State.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under Sec. 1625 of the Act, a 
person subject to an order may file a petition with the Secretary 
stating that such order, a provision of such order or an obligation 
imposed in connection with such order is not in accordance with law; 
and requesting a modification of the order or an exemption from the 
order. Such person is afforded the opportunity for a hearing on the 
petition. After the hearing, the Secretary would rule on the petition. 
The Act provides that the district court of the United States in the 
district in which person resides or does business has jurisdiction to 
review the Secretary's determination, if a complaint is filed not later 
than 20 days after the date such person receives notice of such 
determination.
    This action also was reviewed under the Regulatory Flexibility Act 
(RFA) (5 U.S.C. 601 et seq.). The effect of the Order upon small 
entities was discussed in the September 5, 1986, issue of the Federal 
Register (51 FR 31898), and it was determined that the Order would not 
have a significant effect upon a substantial number of small entities. 
Many importers may be classified as small entities. This proposed rule 
would increase the amount of assessments on imported pork and pork 
products subject to assessment by two-hundredths of a cent per pound, 
or as expressed in cents per kilogram, four-hundredths of a cent per 
kilogram. Adjusting the assessments on imported pork and pork products 
would result in an estimated increase in assessments of $143,000 over a 
12-month period. Accordingly, the Administrator of AMS has determined 
that this action would not have a significant economic impact on a 
substantial number of small entities. This proposed rule would also 
revise HTS numbers for imported porcine animals, pork, and pork 
products subject to assessment from 11 digits to 10 digits to conform a 
change in those HTS numbers made by USCS. The change made in the number 
of digits in HTS numbers is merely a technical change and will not 
impose any new requirements on importers.
    The Act (7 U.S.C. 4801-4819) approved December 23, 1985, authorized 
the establishment of a national pork promotion, research, and consumer 
information program. The program was funded by an initial assessment 
rate of 0.25 percent of the market value of all porcine animals 
marketed in the United States and an equivalent amount of assessment on 
imported porcine animals, pork, and pork products. However, that rate 
was increased to 0.35 percent effective December 1, 1991 (56 FR 51635). 
The final Order establishing a pork promotion, research, and consumer 
information program was published in the September 5, 1986, issue of 
the Federal Register (51 FR 31898; as corrected, at 51 FR 36383 and 
amended at 53 FR 1909, 53 FR 30243, 56 FR 4, and 56 FR 51635) and 
assessments began on November 1, 1986.
    The Order requires importers of porcine animals to pay USCS, upon 
importation, the assessment of 0.35 percent of the animal's declared 
value and importers of pork and pork products to pay USCS, upon 
importation, the assessment of 0.35 percent of the market value of the 
live porcine animals from which such pork and pork products were 
produced. This proposed rule would increase the assessments on all of 
the imported pork and pork products subject to assessment listed in 7 
CFR 1230.110 (September 8, 1993; 58 FR 47205). This increase is 
consistent with the increase in the annual average price of domestic 
barrows and gilts for calendar year 1993 as reported by USDA, AMS, 
Livestock and Grain Market News (LGMN) Branch. This increase in 
assessments would make the equivalent market value of the live porcine 
animal from which the imported pork and pork products were derived 
reflect the recent increase in the market value of domestic porcine 
animals, thereby promoting comparability between importer and domestic 
assessments. This proposed rule would not change the current assessment 
rate of 0.35 percent of the market value.
    The methodology for determining the per-pound amounts for imported 
pork and pork products was described in the Supplementary Information 
accompanying the Order and published in the September 5, 1986, Federal 
Register at 51 FR 31901. The weight of imported pork and pork products 
is converted to a carcass weight equivalent by utilizing conversion 
factors which are published in the USDA Statistical Bulletin No. 616 
``Conversion Factors and Weights and Measures.'' These conversion 
factors take into account the removal of bone, weight lost in cooking 
or other processing, and the nonpork components of pork products. 
Secondly, the carcass weight equivalent is converted to a live animal 
equivalent weight by dividing the carcass weight equivalent by 70 
percent, which is the average dressing percentage of porcine animals in 
the United States. Thirdly, the equivalent value of the live porcine 
animal is determined by multiplying the live animal equivalent weight 
by an annual average market price for barrows and gilts as reported by 
USDA, AMS, LGMN Branch. The annual average price, which was based on 
price data from seven major markets, is now based on only six markets. 
One of the seven markets--Kansas City--closed in 1991; and thus the 
1992 and 1993 annual average prices are based on price data from only 
six markets. This average price is published on a yearly basis during 
the month of January in LGMN Branch's publication ``Livestock, Meat, 
and Wool Weekly Summary and Statistics.'' Finally, the equivalent value 
is multiplied by the applicable assessment rate of 0.35 percent due on 
imported pork and pork products. The end result is expressed in an 
amount per pound for each type of pork or pork product. To determine 
the amount per kilogram for pork and pork products subject to 
assessment under the Act and Order, the cent-per-pound assessments are 
multiplied by a metric conversion factor 2.2046 and carried to the 
sixth decimal.
    The formula in the preamble for the Order at 51 FR 31901 
contemplated that it would be necessary to recalculate the equivalent 
live animal value of imported pork and pork products to reflect changes 
in the annual average price of domestic barrows and gilts to maintain 
equity of assessments between domestic porcine animals and imported 
pork and pork products.
    The average annual market price increased from $42.11 in 1992 to 
$45.32 in 1993, an increase of about 7 percent. This increase would 
result in a corresponding increase in assessments for all HTS numbers 
listed in the table in Sec. 1230.110 of an amount equal to two-
hundredths of a cent per pound, or as expressed in cents per kilogram, 
four-hundredths of a cent per kilogram. Based on the most recent 
available Department of Commerce, Bureau of Census, data on the total 
dollar value of imported pork and pork products subject to the 
assessment in 1993 the proposed increase in assessment amounts would 
result in an estimated $143,000 increase in assessments over a 12-month 
period.
    USCS recently revised HTS numbers to conform with changes in 
importation procedures. The change is only a minor technical change 
which revises all HTS numbers for live porcine animals, pork, and pork 
products listed in the table found at Sec. 1230.110 (58 FR 47205) by 
changing them from 11 digit numbers to 10 digit numbers by dropping the 
last digit. The live porcine animals, pork, and pork products subject 
to assessment and HTS article descriptions listed in a chart contained 
in the Supplementary Information section on page 15914 of the final 
rule (54 FR 15914) would not change. A comparison of the 11 digit 
numbers and the proposed 10 digit numbers are listed in the following 
chart.

                                               Live Porcine Animals                                               
------------------------------------------------------------------------------------------------------------------
    11-Digit No.          10-Digit No.                                                                            
------------------------------------------                                                                        
0103.10.00004         0103.10.0000                                                                                
0103.91.00006         0103.91.0000                                                                                
0103.92.00005         0103.92.0000                                                                                
------------------------------------------------------------------------------------------------------------------


                         Pork and Pork Products                         
------------------------------------------------------------------------
            11-Digit No.                         10-Digit No.           
------------------------------------------------------------------------
0203.11.00002......................               0203.11.0000          
0203.12.10107......................               0203.12.1010          
0203.12.10205......................               0203.12.1020          
0203.12.90100......................               0203.12.9010          
0203.12.90208......................               0203.12.9020          
0203.19.20108......................               0203.19.2010          
0203.19.20901......................               0203.19.2090          
0203.19.40104......................               0203.19.4010          
0203.19.40907......................               0203.19.4090          
0203.21.00000......................               0203.21.0000          
0203.22.10007......................               0203.22.1000          
0203.22.90000......................               0203.22.9000          
0203.29.20008......................               0203.29.2000          
0203.29.40004......................               0203.29.4000          
0206.30.00006......................               0206.30.0000          
0206.41.00003......................               0206.41.0000          
0206.49.00005......................               0206.49.0000          
0210.11.00101......................               0210.11.0010          
0210.11.00209......................               0210.11.0020          
0210.12.00208......................               0210.12.0020          
0210.12.00404......................               0210.12.0040          
0210.19.00103......................               0210.19.0010          
0210.19.00906......................               0210.19.0090          
1601.00.20105......................               1601.00.2010          
1601.00.20908......................               1601.00.2090          
1602.41.20203......................               1602.41.2020          
1602.41.20409......................               1602.41.2040          
1602.41.90002......................               1602.41.9000          
1602.42.20202......................               1602.42.2020          
1602.42.20408......................               1602.42.2040          
1602.42.40002......................               1602.42.4000          
1602.49.20009......................               1602.49.2000          
1602.49.40005......................              1602.49.4000           
------------------------------------------------------------------------

    This change would permit USCS to continue to collect assessments 
due on imported live porcine animals, pork, and pork products in 
conjunction with its regular importation processing and collection 
system.

List of Subjects in 7 CFR Part 1230

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreement, Meat and meat products, Pork and pork 
products.

    For the reasons set forth in the preamble, it is proposed that 7 
CFR part 1230 be amended as set forth below:

PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION

    1. The authority citation for 7 CFR 1230 continues to read as 
follows:

    Authority: 7 U.S.C. 4801-4819.

Subpart B--[Amended]

    2. Subpart B--Rules and Regulations is amended by revising 
Sec. 1230.110 to read as follows:


Sec. 1230.110  Assessments on Imported Pork and Pork Products.

    (a) The following HTS categories of imported live porcine animals 
are subject to assessment at the rate specified. 

------------------------------------------------------------------------
        Live porcine animals                     Assessment             
------------------------------------------------------------------------
0103.10.0000.......................  0.35 percent Customs Entered Value.
0103.91.0000.......................  0.35 percent Customs Entered Value.
0103.92.0000.......................  0.35 percent Customs Entered Value.
                                                                        
------------------------------------------------------------------------

    The following HTS categories of imported pork and pork products are 
subject to assessment at the rates specified. 

------------------------------------------------------------------------
                                                         Assessment     
              Pork and pork products               ---------------------
                                                     cents/lb  cents/kg 
------------------------------------------------------------------------
0203.11.0000......................................        .23    .507058
0203.12.1010......................................        .23    .507058
0203.12.1020......................................        .23    .507028
0203.12.9010......................................        .23    .507028
0203.12.9020......................................        .23    .507028
0203.19.2010......................................        .26    .573196
0203.19.2090......................................        .26    .573196
0203.19.4010......................................        .23    .507028
0203.19.4090......................................        .23    .507028
0203.21.0000......................................        .23    .507028
0203.22.1000......................................        .23    .507028
0203.22.9000......................................        .23    .507028
0203.29.2000......................................        .26    .573196
0203.29.4000......................................        .23    .507028
0206.30.0000......................................        .23    .507028
0206.41.0000......................................        .23    .507028
0206.49.0000......................................        .23    .507028
0210.11.0010......................................        .23    .507028
0210.11.0020......................................        .23    .507028
0210.12.0020......................................        .23    .507028
0210.12.0040......................................        .23    .507028
0210.19.0010......................................        .26    .573196
0210.19.0090......................................        .26    .573196
1601.00.2010......................................        .31    .683426
1601.00.2090......................................        .31    .683426
1602.41.2020......................................        .34    .749564
1602.41.2040......................................        .34    .749564
1602.41.9000......................................        .23    .507028
1602.42.2020......................................        .34    .749564
1602.42.2040......................................        .34    .749564
1602.42.4000......................................        .23    .507028
1602.49.2000......................................        .31    .683426
1602.49.4000......................................        .26   .573196 
------------------------------------------------------------------------

    Dated: May 5, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-11491 Filed 5-12-94; 8:45 am]
BILLING CODE 3410-02-P