[Federal Register Volume 60, Number 4 (Friday, January 6, 1995)]
[Rules and Regulations]
[Pages 1989-1996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-298]



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  Federal Register / Vol. 60, No. 4 / Friday, January 6, 1995 / Rules 
and Regulations  
[[Page 1989]]

DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 6


Dairy Tariff-Rate Import Quota Licensing

AGENCY: Office of the Secretary, USDA.

ACTION: Interim rule.

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

SUMMARY: This rule amends Import Regulation 1, Revision 7 which governs 
the administration of the import licensing system for certain dairy 
products which will be subject to in-quota tariff rates proclaimed in 
the Harmonized Tariff Schedule of the United States (HTS), resulting 
from entry into force of the Uruguay Round Agreement on January 1, 
1995. Most of these products were subject to quotas proclaimed under 
section 22 of the Agricultural Adjustment Act of 1933, as amended 
(Section 22).

DATES: This interim rule will be effective on January 1, 1995. Comments 
should be submitted on or before February 21, 1995 to be assured of 
consideration.

ADDRESSES: Comments should be sent to Richard Warsack, Dairy Import 
Quota Manager, Import Policies and Programs Division, Room 5531-S, 
Foreign Agricultural Service, U.S. Department of Agriculture, 14th and 
Independence Avenue, SW., Washington, DC 20250-1000. All comments 
received will be available for public inspection in room 5541-S at the 
above address.

FOR FURTHER INFORMATION CONTACT: Diana Wanamaker, Group Leader, Import 
Programs Group, Import Policies and Programs Division, Room 5531-S, 
Foreign Agricultural Service, U.S. Department of Agriculture, 14th and 
Independence Avenue, SW., Washington, DC 20250, or telephone (202) 720-
2916.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This interim rule is issued in conformance with Executive Order 
12866. It has been determined to be significant for the purposes of 
E.O. 12866 and, therefore, has been reviewed by the Office of 
Management and Budget (OMB).

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this interim rule since the Office of the Secretary is 
not required by 5 U.S.C. 553 or any other provision of law to publish a 
notice of proposed rulemaking with respect to the subject matter of 
this rule.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which requires intergovernmental consultation with State and 
local officials. See notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115 (June 24, 1983).

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
action will not have a significant impact on the quality of the human 
environment. Therefore, neither an Environmental Assessment nor an 
Environmental Impact Statement is needed.

Paperwork Reduction Act

    This Interim Final Rule amends the existing information collection 
as approved by the Office of Management and Budget (OMB) pursuant to 
the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et. seq.), under 
OMB control number 0551-0001, expiring June 30, 1997.
    Due to the time constraints of implementing the rule immediately, 
the agency has requested emergency clearance of this addendum from OMB. 
Comments on the information collection may be sent to the Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Room 10202, NEOB, Washington, DC 20503. Attention: Desk Officer for 
USDA.

Executive Order 12778

    This interim rule has been reviewed under Executive Order 12778. 
The provisions of this interim rule would have preemptive effect with 
respect to any state or local laws, regulations, or policies which 
conflict with such provisions or which otherwise impede their full 
implementation. The rule would not have retroactive effect.

Background

    An Advance Notice of Proposed Rulemaking (the ANPR) was published 
in the Federal Register on June 2, 1994, seeking suggestions and 
comments on methods for allocating imported dairy products subject to 
the in-quota tariff rates to be proclaimed in the HTS as a result of 
the entry into force of the Uruguay Round Agreement. The ANPR also 
sought suggestions on various other changes intended to update and make 
more enforceable the provisions of Import Regulation 1, Revision 7, 
codified at 7 CFR Secs. 6.20-6.24 (the Import Regulation). Because of 
time constraints this rule will deal only with modifications of the 
existing rule necessary to implement the U.S. Uruguay Round commitments 
and will become effective January 1, 1995. A proposed rule making 
further changes as envisaged in the ANPR will be published in the 
future.
    This interim rule issues the Import Regulation under the authority 
of section 111 of the Uruguay Round Agreements Act and Chapter 4 and 
General Note 15 of the Harmonized Tariff Schedule of the United States 
(HTS), and amends that regulation to establish the import licensing 
system for the quantities of cheese and certain other dairy products 
subject to in-quota tariff rates in the HTS. These quantities include 
both the quantities which have been subject to an absolute quota under 
Section 22 as well as the additional quantities of cheese articles and 
certain non-cheese articles negotiated under the Uruguay Round of 
multilateral trade negotiations. Certain Uruguay Round country tariff-
rate quotas or increments do not appear in Appendix 3 of this 
regulation as they will only take effect when those countries implement 
their respective schedules of concessions. The interim rule also 
establishes new eligibility requirements and allocation methods for the 
new quantities of non-cheese items. In addition, it deletes obsolete 
provisions and updates all the references in the regulation to the HTS 
[[Page 1990]] to conform to the tariff schedule which becomes effective 
on January 1, 1995.
    Throughout the regulation, the term ``annual quota'' is replaced by 
``annual tariff-rate quota,'' and references to the TSUS are now to the 
Harmonized Tariff Schedule of the United States, the Harmonized Tariff 
Schedule, or the HTS.
    The definitions in section 6.21 are amended to: (1) replace the 
term ``annual quota'' with ``annual tariff-rate quota,'' (2) add a 
definition of ``Appendix 3'' which sets forth the increments in the 
tariff-rate quota quantities for 1995 for certain cheese and non-cheese 
articles and the total 1995 tariff-rate quota for butter substitutes to 
be administered under this regulation, (3) define the term ``Harmonized 
Tariff Schedule of the United States,'' (4) change the reference to the 
Licensing Authority, which has moved within the Foreign Agricultural 
Service agency structure, (5) add the term ``any country'' which will 
apply to in-quota amounts for which there is no country allocation and 
to country of origin adjustments provided for in section 6.30, and (6) 
change all references to the TSUS to read the HTS.
    Section 6.23, which establishes exceptions to the requirement for a 
license to enter certain products, is amended to conform with the 
exceptions in General Note 15 of the Harmonized Tariff Schedule of the 
United States.
    The eligibility provisions in section 6.25 are changed to: (1) 
eliminate all one-time provisions establishing eligibility for new 
historical and non-historical licenses which resulted from the Tokyo 
Round Agreement, (2) provide that the eligibility requirements for 
supplementary licenses be applied to Appendix 3 cheese articles and 
provide eligibility criteria for non-cheese dairy article Appendix 3 
supplementary import licenses, and (3) provide for an application 
period for licenses to import all 1995 Uruguay Round increments in 
cheese and certain non-cheese dairy articles. The eligibility 
requirements for the non-cheese articles are significantly more 
stringent than the existing cheese requirements. This is to ensure that 
licenses are awarded to import/distribution or manufacturing 
operations. There is, however, an alternative eligibility requirement 
for non-cheese items which requires a greater number of shipments 
spread throughout the year than the standard criteria. The alternative 
is intended to allow small companies or those seeking less than a 
container-load to qualify for license.
    Section 6.26 is amended to: (1) eliminate all one-time provisions 
establishing the allocation of new historical licenses which resulted 
from the Tokyo Round Agreement, (2) update the table of minimum non-
historical license sizes to show the HTS number and quantity in 
kilograms, and (3) apply the allocation methods for supplementary 
licenses to Appendix 3 cheese articles and establish allocation methods 
for Appendix 3 non-cheese articles. The minimum and maximum 
supplementary license sizes for non-cheese articles are being set at 
higher levels than those which currently apply to cheese articles to 
reflect current shipping practices. The allocation method for the new 
amounts of non-cheese articles will be a rank-order lottery, in which 
applicants are requested to number each license request in a rank 
order. Once a license is awarded from among the non-cheese articles to 
an applicant, no other non-cheese license will be awarded to that 
applicant until all the other applicants have received at least one 
non-cheese license for which they applied, provided that the licenses 
for which they applied are not already fully allocated.
    Section 6.27 is amended to delete the references to Customs Form 
7505 which is no longer in use. Sections 6.28, 6.29, and 6.30 are 
amended solely to bring them up-to-date and into conformance with the 
HTS effective as of January 1, 1995, and to provide coverage for 
Appendix 3 articles where appropriate. Section 6.34 is deleted as it is 
unnecessary in the body of the rule.

List of Subjects in 7 CFR Part 6

    Agricultural commodities, Cheese, Dairy products, Imports, and 
Reporting and record keeping requirements.

Interim Rule

    Accordingly, 7 CFR Part 6, Subpart--Section 22 Import Quotas, 
Secs. 6.20-6.34, and Appendix 1 and Appendix 2 thereto, are amended as 
follows:
    1. The heading for Secs. 6.20-6.34 is revised to read as follows: 
``Subpart--Tariff-Rate Quotas''.
    2. The authority citation for sections 6.20-6.34 and the appendices 
thereto is revised to read as follows:

    Authority: Additional U.S. Notes 6, 7, 12, 14, and 16-25 to 
Chapter 4 and General Note 15 of the Harmonized Tariff Schedule of 
the United States (19 U.S.C. 1202), Pub. L. 97-258, 96 Stat. 1051 
(31 U.S.C. 9701), and sec. 111, Pub. L. 103-465, 108 Stat. 4819.

    3. Section 6.20 is revised to read as follows:


Sec. 6.20  Determination.

    Additional U.S. Notes 6, 7, 12, 14, and 16 through 25 to Chapter 4 
of the Harmonized Tariff Schedule of the United States provide that 
imports of the articles enumerated in those notes require import 
licenses issued by the U.S. Department of Agriculture. Additional U.S. 
Notes 16 through 25 also provide that unfilled allocations may be 
reallocated in accordance with regulations issued by the U.S. 
Department of Agriculture. General Note 15 provides for certain 
exceptions that require the approval of the Secretary of Agriculture. 
These regulations shall apply to all articles subject to tariff-rate 
quotas, and the exceptions thereto, in accordance with these notes.
    4. Section 6.21 is revised to read as follows:


Sec. 6.21  Definitions.

    Affiliate means any person or legal entity which owns or is owned 
by, in total or in part, directly or indirectly, or controls or is 
controlled by another person, persons or legal entity. For a 
corporation, ownership interest will be the controlling criterion. If 5 
percent or more equity interest in the aggregate is owned or controlled 
in a corporation, partnership, estate, or trust by or for a person, a 
corporation, a partnership, or a beneficiary of an estate or a trust, 
the interest will be considered as owned or controlled by the person, 
partnership, corporation, estate or trust. Ownership interest in any 
person or legal entity may be attributed to another person or entity in 
accordance with Sec. 6.25(b)(3), thereby causing the person or entity 
to whom the ownership interest has been attributed to be defined as an 
``affiliate'' even though such persons or legal entities have no direct 
relation with each other.
    Annual tariff-rate quota means the quantity of an article which may 
be entered in a quota year as provided for in Appendix 1, Appendix 2 
and Appendix 3 at the in-quota tariff rate.
    Any country means those countries or territories listed in Annex A, 
Schedule C of the Harmonized Tariff Schedule.
    Appendix 1 means Appendix 1 to this subpart. Definitions of 
articles in this appendix are the same as those provided for in the 
Additional U.S. Notes to Chapter 4 of the Harmonized Tariff Schedule.
    Appendix 2 means Appendix 2 to this subpart. Definitions of 
articles in this appendix are the same as those provided for in the 
Additional U.S. Notes to Chapter 4 of the Harmonized Tariff Schedule.
    Appendix 3 means Appendix 3 to this subpart. Definitions of 
articles in this [[Page 1991]] appendix are the same as those provided 
for in the Additional U.S. Notes to Chapter 4 of the Harmonized Tariff 
Schedule.
    Article means any Harmonized Tariff Schedule article referred to in 
Appendix 1, Appendix 2, or Appendix 3 of this supart.
    Associate means a party connected with one or more parties, 
formally or informally, directly or indirectly, with the common purpose 
of obtaining eligibility for additional licenses, one party intending 
to use, (and benefit economically from such use) directly or indirectly 
the licenses that the other may acquire. Two or more associates of a 
third party shall not be deemed to be associates of one another due to 
such third-party association only.
    Authorized agent means an agent as used in 19 CFR 141.31(a) for 
whom the licensee has filed with the District Director of Customs a 
limited power of attorney using Customs Form 5291 authorizing such 
agent to act for, but only in, the licensee's name.
    Basic annual allocation refers to historical quota shares only and 
means the quota share of a licensee for an article before any reduction 
as authorized under Sec. 6.26(d) has been effected. It will be 
calculated on the basis of the annual average amount entered by a 
licensee during a predetermined representative base period.
    Cheese or cheese products means those cheeses and cheese products 
for which standards of identity have been promulgated by the Food and 
Drug Administration and/or which are encompassed within 21 CFR part 
133.
    Country of origin and/or Supplying country mean the country in 
which the article subject to the regulation was produced or 
manufactured as defined under 19 CFR 134.1(b).
    Date of entry is the date when the specified Customs entry form is 
properly executed and deposited, together with estimated duties and any 
related documents required by law or regulation to be filed with such 
form at the time of entry, with the appropriate Customs Officer.
    Department means the United States Department of Agriculture.
    EC means the twelve European Community countries, viz., Belgium, 
Denmark, the Federal Republic of Germany, France, Greece, Ireland, 
Italy, Luxembourg, the Netherlands, Portugal, Spain and the United 
Kingdom, which for the purposes of this regulation shall be deemed as 
one country of origin.
    Eligible applicant means a person applying for a license to enter 
an article who has established, to the satisfaction of the Licensing 
Authority, eligibility to enter such article, in accordance with 
Sec. 6.25.
    Enter means to make entry, or withdrawal from warehouse, for 
consumption by deposit with, and acceptance by, the appropriate Customs 
officer of the properly executed entry documents, including invoices, 
bills of lading and payment of estimated duties.
    Entire dairy products business means the total assets and 
operations of the foreign and domestic aspects of a business pertaining 
to articles subject to the provisions of this regulation.
    Entrepreneurial use means the processing or sale of the article 
entered pursuant to the license as a part of the ordinary conduct of 
business by a licensee who is managing and assuming the risk of such 
business. Such term does not include one who is functioning as a mere 
supplier of license.
    Harmonized Tariff Schedule means the Harmonized Tariff Schedule of 
the United States.
    Licensee means any person to whom a license has been issued under 
the regulation.
    Licensing Authority means the Dairy Import Quota Manager, Import 
Policies and Programs Division, Foreign Agricultural Service, U.S. 
Department of Agriculture, or any other officer or employee of the 
Department acting in his or her behalf.
    Other countries refers to countries sharing a common tariff-rate 
quota which are not listed as having separate tariff-rate quota 
allocations in the Additional U.S. Notes to Chapter 4 of the Harmonized 
Tariff Schedule and for the purposes of the regulation are deemed as 
one country of origin.
    Person includes any individual, firm, corporation, partnership, 
association, or other legal entity. It also includes any national 
government (other than the Government of the United States and any 
agency thereof).
    Postmark means the postage cancellation mark applied by the U.S. 
Post Office showing the post office and date of mailing. This does not 
include metered postage affixed by the applicant or any other private 
entity.
    Quota means the articles and quantities of such articles subject to 
an in-quota rate of duty provided for in the Additional U.S. Notes to 
Chapter 4 of the Harmonized Tariff Schedule and covered by this 
regulation.
    Quota share means that part of the annual tariff-rate quota of an 
article listed in Appendix 1, Appendix 2, or Appendix 3 of this subpart 
for which a person is eligible.
    Quota year means the 12-month period beginning on January 1 of any 
given year.
    Regulation means the provisions contained in the Licensing 
Regulation of this subpart.
    United States means the Customs Territory of the United States, 
which is limited to the United States, the District of Columbia and 
Puerto Rico.
    5. Section 6.22 is amended by revising paragraph (a) to read as 
follows:


Sec. 6.22  Prohibitions and restrictions on importers.

    (a) No person may enter or cause to be entered any article listed 
in Appendix 1, Appendix 2, or Appendix 3, except as provided in 
Sec. 6.23 or as authorized by a license issued pursuant to this 
regulation.
* * * * *
    6. Section 6.23 is revised to read as follows:


Sec. 6.23  Exceptions.

    Licenses are not required for the entry of:
    (a) Products imported by or for the account of any agency of the 
U.S. Government.
    (b) Products imported for the personal use of the importer, 
provided that the net quantity of such product in any one shipment does 
not exceed five kilograms.
    (c) Products, which will not enter the commerce of the United 
States, imported as samples for taking orders, for exhibition, display 
or sampling at a trade fair, for research, for use by embassies of 
foreign governments or for testing of equipment, provided that written 
approval of the Licensing Authority is obtained.
    7. Section 6.24 is revised to read as follows:


Sec. 6.24  Application for license.

    Applications of the Licensing Authority for the issuance of 
licenses to enter articles must be made in writing, addressed to the 
Import Licensing Group, Room 5531-S, Import Policies and Programs 
Division, Foreign Agricultural Service, U.S. Department of Agriculture, 
Washington, D.C. 20250-1000. Each application must indicate the 
Additional U.S. Note number of the Harmonized Tariff Schedule and the 
country of origin of the article. Unpostmarked applications will not be 
approved by the Licensing Authority.
    8. Section 6.25 is amended by revising paragraph (a), the 
introductory text of paragraph (c)(1), paragraphs (c)(1)(ii), 
(c)(1)(iii), (c)(2) and (c)(3) to read as follow: [[Page 1992]] 


Sec. 6.25  Eligibility.

    (a) Historical eligibility. Historical eligibility for licenses to 
enter in-quota shares of articles subject to tariff-rate quotas which 
are shown in Appendix 1 and Appendix 2 of this subpart, has already 
been established.
* * * * *
    (c)(1) Supplementary license eligibility for specific articles of 
cheese listed in Appendix 2 and Appendix 3 of this subpart will be 
established:
    (i) * * *
    (ii) By application by a person having historical eligibility for a 
particular article shown in Appendix 2 of this subpart from the country 
of origin for which such person is seeking supplementary license; or
    (iii) By being endorsed in writing by the government of the 
supplying country as a preferred importer, with such endorsement being 
sent directly from the government of the supplying country through 
appropriate channels to the Licensing Authority, and for articles in 
Appendix 2 of this subpart by meeting one or both of qualifications in 
paragraphs (c)(1)(i) and (ii) of this section. For articles in Appendix 
3 of this subpart such qualifications must be met beginning with the 
1996 quota year. Endorsement by the government of a supplying country 
of a person who is known to the Licensing Authority to have at any time 
violated any provision of this or any other regulation or law of the 
United States applicable to international commerce will not be 
recognized by the Licensing Authority.
    (2) Notwithstanding paragraph (b)(4) of this section, certification 
required to establish supplementary eligibility for license for 
articles under Appendix 3 of this subpart, must be postmarked no 
earlier than January 30, 1995 and no later than February 20, 1995. 
Importers who may have already submitted supplementary license 
certification for cheese during the application period which ended 
November 1, 1994 may request license for cheese articles under Appendix 
3 of this subpart by submitting an application, provided by the 
Licensing Authority upon request, without further documentation, 
postmarked as required in this paragraph.
    (3) Supplementary eligibility for specific non-cheese articles 
listed in Appendix 3 of this subpart will be established by:
    (i) Submission of documentary evidence acceptable to the Licensing 
Authority as required under paragraphs (b)(2)(i) and (ii) of this 
section, and
    (ii) Providing documentary evidence that the applicant has made at 
least two separate commercial entries or exports of any dairy product 
totaling not less than 38,000 kilograms during the 1994 calendar year; 
or at least eight separate commercial entries or exports totaling not 
less than 18,000 kilograms, each entry or export being a minimum of 
2,200 kilograms, with a minimum of two transactions taking place in 
each of at least three quarters of the 1994 calendar year. U.S. Customs 
Service Consumption entry documents (Entry Summary Form 7501) and proof 
of payment in the applicant's name for the entered product and the duty 
must be provided showing that such person has made the above commercial 
entries or in the case of a person seeking eligibility on the basis of 
exports, U.S. Department of Commerce, Bureau of the Census Form 7525-V 
and the invoice or other proof that the applicant has made the exports 
of dairy products must be provided; or
    (iii)(A) Being listed in the Dairy Plants Surveyed and Approved for 
USDA Grading Service, and
    (B) certifying that the product will be used directly in the 
plant's own manufacturing or sales/distribution program.
* * * * *
    9. Section 6.26 is amended by removing paragraphs (a)(3) through 
(a)(6) and revising the table in paragraph (b)(1) to read as follows:


Sec. 6.26  Allocation of annual quota and issuance of licenses.

* * * * *
    (b) * * *
    (1) * * *

------------------------------------------------------------------------
                                                      HTS      Minimum  
                      Article                         note     quantity 
                                                      No.    (kilograms)
------------------------------------------------------------------------
Dried buttermilk and whey.........................       12       1,133 
Dried skimmed milk................................        7       2,267 
Dried whole milk..................................        8         453 
Butter............................................        6         453 
Blue-mold cheese..................................       17       2,267 
Cheddar cheese....................................       18       4,535 
American-type cheese..............................       19       4,535 
Edam and Gouda cheese.............................       20       3,175 
Italian-type cow's milk cheese....................       21       2,267 
Swiss or Emmenthaler cheese with eye formation....       25       4,535 
Swiss or Emmenthaler cheese other than eye-                             
 formation Gruyere Process........................       22       4,535 
Other cheese NSPF.................................       16      18,143 
Other cheese low fat..............................       23       4,535 
------------------------------------------------------------------------

* * * * *


Sec. 6.26  [Amended]

    10. Section 6.26 is further amended by removing paragraph (b)(5) 
and revising the introductory text of paragraph (c) and the 
introductory text of paragraph (c)(3) to read as follows:
    (c) Supplementary licenses (pertaining to articles in Appendix 2 
and Appendix 3 of this subpart) for cheese articles:
* * * * *
    (c)(3) A supplementary quota share for a cheese article in Appendix 
2 or Appendix 3 of this subpart from a particular country of origin 
other than those provided for in paragraph (c)(2) of this section will 
be determined on the following basis:
* * * * *
    11. Section 6.26 is further amended by removing paragraph (f) and 
by redesignating paragraphs (d) and (e) as paragraphs (e) and (f). A 
new paragraph (d) is added to read as follows:


Sec. 6.26  Allocation of annual quota and issuance of licenses.

* * * * *
    (d) Supplementary licenses (pertaining to articles in Appendix 3 of 
this subpart) for non-cheese articles:
    (1) A person with its affiliate(s) or associate(s) will be 
considered only as one person for the purpose of allocation of such 
supplementary quota shares. However, a person with an Appendix 1 
historical license for such article initially issued for a quota year 
prior to 1995 is not precluded from applying for such supplementary 
quota shares.
    (2) The size of a supplementary quota share issued to an eligible 
applicant shall not exceed 57,000 kilograms.
    (3) If, after applications for supplementary licenses have been 
evaluated and tabulated, the Licensing Authority determines that 
eligible applicants for shares of a particular non-cheese tariff-rate 
quota in Appendix 3 of this subpart have appropriately requested 
amounts which together exceed the amount available for allocation, the 
Licensing Authority shall first assign quota shares of not less than 
the minimum share as indicated below to each applicant and then prorate 
the remaining portion available for allocation among them. The minimum 
share shall be as follows:
    (i) 19,000 kilograms where the total amount available for 
allocation is less than 550,000 kilograms;
    (ii) 38,000 kilograms where the total amount available for 
allocation is greater than 550,001 kilograms.
    (4) If applying for more than one supplementary license for non-
cheese articles covered by this regulation, the [[Page 1993]] applicant 
must rank order these requests by the applicable U.S. Additional Note 
number for the article being requested. If, after applications for 
supplementary licenses have been evaluated and tabulated according to 
the rank order submitted, the Licensing Authority determines that the 
number of eligible applicants for a minimum tariff-rate quota share for 
a particular article from a particular country in Appendix 3 of this 
subpart exceeds the number of available minimum tariff-rate quota 
shares for that article, the Licensing Authority will then allocate the 
licenses by random selection. However, once a license is awarded from 
among the non-cheese articles to an applicant, no other non-cheese 
license will be awarded to that applicant until all the other 
applicants have at least received one such license for which they 
applied, provided that the licenses for which they applied are not 
already fully allocated. A single tariff-rate quota share for a 
particular article of less than the minimum may be issued, if 
appropriate, to facilitate full allocation of a particular tariff-rate 
quota.


Sec. 6.27  [Amended]

    12. Section 6.27 is amended in paragraph (f) by removing ``7505'' 
and adding ``7501''; and in paragraph (h) by removing the words ``entry 
Form 7501 or Customs warehouse withdrawal Form 7505'' and adding in 
their place ``Form 7501'' and removing the words ``or 7505''.
    13. Section 6.28 is amended by revising the first sentence to read 
as follows:


Sec. 6.28  Records and inspection.

    Any person making an entry, except as provided in Sec. 6.23, of an 
article listed in Appendix 1, Appendix 2, or Appendix 3 of this subpart 
is required to retain all records, including invoices of all purchases, 
entries, withdrawals, sales and deliveries of such articles for a 
period of not less than two years subsequent to the end of the quota 
year during which entry was made.


Sec. 6.29  [Amended]

    14. Section 6.29 is amended by removing all references in paragraph 
(b)(3) to the ``Dairy, Livestock and Poultry Division'' and adding 
``Import Policies and Programs Division'' in its place.


Sec. 6.30  [Amended]

    15. Section 6.30 is amended in paragraph (a) by removing paragraphs 
(a) (1) and (2) and the colon at the end of the introductory text and 
by adding the following text:


Sec. 6.30   Adjustment of countries of origin.

    (a) * * * any country of origin (global) except where Uruguay Round 
commitments require the consent of the supplying country. In such case, 
consent will be sought and action taken only if it is granted for 
portions of the tariff-rate quota subject to this requirement.


Sec. 6.34  [Removed]

    16. Section 6.34 is removed.
    17. Appendix 1 and Appendix 2 of the subpart following Sec. 6.34 
are revised and a new Appendix 3 is added as follows:

    Appendix 1--Articles Subject to the Historical and Nonhistorical    
    Licensing Provisions of the Import Regulation 1, Revision 7, and    
        Respective Annual Tariff-Rate Quotas for Each Quota Year        
------------------------------------------------------------------------
                                                             Annual     
                                                           historical/  
                Article by HTS Note No.                   nonhistorical 
                                                              quota     
                                                           (kilograms)  
------------------------------------------------------------------------
Group I:                                                                
    (a) Butter (Note 6)...............................           320,689
        EC............................................            96,161
        New Zealand...................................           150,593
        Other Countries...............................            73,935
    (b) Dried whole milk (Note 8).....................             3,175
    (c) Dried skimmed milk (Note 7)...................           819,641
    (d) Dried buttermilk and whey (Note 12)...........           224,981
Group II:                                                               
    (a) Edam and Gouda cheese (Note 20)...............         5,606,401
        EC............................................         5,248,000
        Norway........................................           167,000
        Argentina.....................................           125,000
        Sweden........................................            41,000
        Other countries...............................            25,401
    (b) Blue-mold cheese (except Stilton made in                        
     England) and cheese and substitutes for cheese                     
     containing or processed from blue-mold cheese                      
     (Note 17)........................................         2,257,001
        EC............................................         2,255,000
        Argentina.....................................             2,000
        Other countries...............................                 1
Group III:                                                              
    (a) Cheddar cheese and cheese and substitutes for                   
     cheese containing or processed from Cheddar                        
     cheese (Note 18).................................         3,667,889
        EC............................................           263,000
        Australia.....................................           769,000
        New Zealand...................................         2,496,000
        Other countries...............................           139,889
    (b) American-type cheese, including Colby, washed                   
     curd, and granular cheese (but not including                       
     cheddar) and cheese and substitutes for cheese                     
     containing or processed from such American-type                    
     cheese (Note 19).................................         2,708,556
        EC............................................           254,000
        Australia.....................................           762,000
        New Zealand...................................         1,524,000
        Other countries...............................           168,556
Group IV:                                                               
    (a) Italian-type cheese made from cow's milk                        
     (Romano made from cow's milk, Reggiano,                            
     Parmesano, Provolone, Provolette, Sbrinz, and                      
     Goya not in original loaves) (Note 21)...........         5,625,064
        EC............................................        1,810,000 
[[Page 1994]]                                                           
                                                                        
        Argentina.....................................         3,802,000
        Other countries...............................            13,064
Group V:                                                                
    (a) Swiss or Emmenthaler cheese with eye formation                  
     (Note 25)........................................         9,260,276
        EC............................................         1,767,000
        Austria.......................................         3,729,000
        Finland.......................................         2,772,000
        Israel........................................            27,000
        Norway........................................           758,000
        Switzerland...................................           122,000
        Other countries...............................            85,276
    (b) Swiss or Emmenthaler cheese other than with                     
     eye formation. Gruyere-process cheese, and cheese                  
     and substitutes for cheese containing, or                          
     processed from such cheese (Note 22).............         5,061,833
        EC............................................         2,603,000
        Austria.......................................           638,000
        Finland.......................................           728,000
        Switzerland...................................         1,013,000
        Other countries...............................            79,833
    (c) Cheese and substitutes for cheese (except                       
     cheese not containing cow's milk; soft ripened                     
     cow's milk cheese; cheese (except cottage cheese)                  
     containing 0.5 percent or less by weight of                        
     butterfat), and articles within the scope of                       
     other tariff-rate quotas provided for in                           
     additional U.S. Notes 17 through 25, inclusive,                    
     to this chapter (Note 16)........................        18,448,859
        EC............................................        10,724,000
        Austria.......................................            90,000
        Australia.....................................            56,000
        Canada........................................         1,141,000
        Finland.......................................           562,000
        Iceland.......................................           294,000
        Israel........................................            66,000
        New Zealand...................................         3,427,000
        Norway........................................           150,000
        Poland........................................           936,224
        Sweden........................................           774,000
        Switzerland...................................            98,000
        Other countries...............................           130,635
    (d) Cheese and substitutes for cheese, containing                   
     0.5 percent or less by weight of butterfat                         
     (except articles within the scope of other tariff-                 
     rate quotas provided for in additional U.S. Notes                  
     16 through 22, inclusive, or additional U.S.                       
     Notes 24 and 25 to this chapter) and margarine                     
     cheese (Note 23).................................         3,951,908
        EC............................................         3,777,000
        Poland........................................           174,907
        Other countries...............................                 1
------------------------------------------------------------------------


    Appendix 2--Articles Subject to the Historical and Supplementary    
 Licensing Provisions of Import Regulation 1, Revision 7, and Respective
              Annual Tariff-Rate Quotas for Each Quota Year             
------------------------------------------------------------------------
                                                             Annual     
                                                           historical/  
                Article by HTS Note No.                   supplementary 
                                                              quota     
                                                           (kilograms)  
------------------------------------------------------------------------
Group II:                                                               
    (c) Blue-mold cheese (except stilton made in                        
     England), and cheese and substitutes for cheese                    
     containing, or processed from Blue-mold cheese                     
     (Note 17)........................................           224,000
        EC............................................           224,000
Group III:                                                              
    (a) Cheddar cheese, and cheese and substitutes for                  
     cheese containing, or processed from Cheddar                       
     cheese (Note 18).................................         1,035,000
        New Zealand...................................           604,000
        Australia.....................................           431,000
    (b) American-type cheese, including Colby, washed                   
     curd, and granular cheese (but not including                       
     Cheddar) and cheese and substitutes for cheese                     
     containing, or processed from such American-type                   
     cheese (Note 19).................................           714,000
        New Zealand...................................           476,000
        Australia.....................................           238,000
Group IV:                                                               
    (a) Italian-type cheese made from cow's milk,                       
     (Romano made from cow's milk, Reggiano,                            
     Parmesano, Provolone, Provolette, Sbrinz and Goya                  
     not in original loaves) (Note 21)................         2,691,000
        Argentina.....................................           691,000
        EC............................................         1,572,000
        Uruguay.......................................           428,000
Group V:                                                                
    (a) Swiss or Emmenthaler cheese with eye formation                  
     (Note 25)........................................       22,595,000 
[[Page 1995]]                                                           
                                                                        
        EC............................................         4,233,000
        Argentina.....................................            80,000
        Austria.......................................         2,551,000
        Australia.....................................           500,000
        Canada........................................            70,000
        Finland.......................................         5,428,000
        Iceland.......................................           300,000
        Norway........................................         6,125,000
        Switzerland...................................         3,308,000
    (b) Swiss or Emmenthaler cheese other than with                     
     eye formation. Gruyere-process cheese; and cheese                  
     and substitutes for cheese containing, or                          
     processed from such cheese (Note 22).............         2,413,000
        EC............................................         1,022,000
        Austria.......................................           282,000
        Finland.......................................           272,000
        Switzerland...................................           837,000
    (c) Cheese and substitutes for cheese (except                       
     cheese not containing cow's milk; soft ripened                     
     cow's milk cheese; cheese (except cottage cheese)                  
     containing 0.5 percent or less by weight of                        
     butterfat), and articles within the scope of                       
     other import quotas provided for in additional                     
     U.S. Notes 17 through 25, inclusive, to this                       
     chapter) (Note 16)...............................        22,383,000
        EC............................................         9,732,000
            (of which 353,000 are reserved for                          
             Portugal)                                                  
        Argentina.....................................           100,000
        Australia.....................................         1,244,000
        Austria.......................................           560,000
        Finland.......................................           738,000
        Iceland.......................................            29,000
        Israel........................................           607,000
        New Zealand...................................         7,895,000
        Sweden........................................           285,000
        Switzerland...................................         1,122,000
        Other Countries...............................            71,000
    (d) Cheese and substitutes for cheese, containing                   
     0.5 percent or less by weight of butterfat                         
     (except articles within the scope of other import                  
     quotas provided for in additional U.S. Notes 16                    
     through 22, inclusive, or additional U.S. Notes                    
     24 and 25 to this chapter) and margarine cheese                    
     (Note 23)........................................         1,523,000
        EC............................................           223,000
        Israel........................................            50,000
        New Zealand...................................         1,000,000
        Sweden........................................           250,000
------------------------------------------------------------------------


   Appendix 3--Certain Articles Subject to the Supplementary Licensing  
  Provisions of Import Regulation 1, Revision 7, and Respective Annual  
                   Tariff-Rate Import Quotas for 1995                   
------------------------------------------------------------------------
                                                             Annual     
                                                          Supplementary 
            Article by HTS Annual Note No.                    quota     
                                                           (kilograms)  
------------------------------------------------------------------------
    Butter (Note 6)...................................         3,656,311
    Dried Skim Milk (Note 7)..........................           441,359
    Dried Whole Milk (Note 8).........................           368,125
    Butter Substitutes Containing over 45% by weight                    
     of butterfat and butteroil (Note 14).............         3,480,500
    Cheese and substitutes for cheese (except cheese                    
     not containing cow's milk; soft ripened cow's                      
     milk cheese; cheese (except cottage cheese)                        
     containing 0.5 percent or less by weight of                        
     butterfat), and articles within the scope of                       
     other tariff-rate quotas provided for in                           
     additional U.S. Notes 17 through 25, inclusive,                    
     to this chapter) (Note 16).......................         2,441,666
        Australia.....................................           291,666
        Costa Rica....................................         1,000,000
        Czech Republic................................           200,000
        Slovak Republic...............................           600,000
        Uruguay.......................................           250,000
        Any Country...................................           100,000
    Blue-mold cheese (except Stilton made in England)                   
     and cheese and substitutes for cheese containing                   
     or processed from blue-mold cheese (Note 17).....            63,333
        Chile.........................................            13,333
        Czech Republic................................            50,000
    Cheddar cheese and cheese and substitutes for                       
     cheese containing or processed from Cheddar                        
     cheese (Note 18).................................         1,245,000
        Australia.....................................           208,333
        Chile.........................................            36,667
        Czech Republic................................            50,000
        New Zealand...................................           850,000
        Any Country...................................          100,000 
[[Page 1996]]                                                           
                                                                        
    Edam and Gouda cheese, and cheese and substitutes                   
     for cheese, containing, or processed from, Edam                    
     and Gouda Cheese (Note 20).......................           210,000
        Argentina.....................................           110,000
        Czech Republic................................           100,000
    Italian-Type cheese made from cow's milk (Romano                    
     made from cow's milk, Reggiano, Parmesano,                         
     Provolone, Provolette, Sbrinz, and Goya not in                     
     original loaves) and cheese and substitutes for                    
     cheese containing, or processed from, such                         
     Italian-type cheese, whether or not in original                    
     loaves (Note 21).................................         3,123,333
        Argentina.....................................         1,890,000
        Uruguay.......................................           750,000
        Hungary.......................................           400,000
        Romania.......................................            83,333
    Swiss-Emmenthaler cheese with eye formation (Note                   
     25)..............................................           800,000
        Czech Republic................................           400,000
        Hungary.......................................           400,000
------------------------------------------------------------------------

    Signed at Washington, D.C., on December 27, 1994.
Mike Espy,
Secretary of Agriculture.
[FR Doc. 95-298 Filed 1-3-95; 3:51 pm]
BILLING CODE 3410-10-P