[Federal Register Volume 60, Number 84 (Tuesday, May 2, 1995)]
[Rules and Regulations]
[Pages 21425-21428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10712]



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 Rules and Regulations
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  Federal Register / Vol. 60, No. 84 / Tuesday, May 2, 1995 / Rules and 
Regulations  
[[Page 21425]]

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 established in 
the Harmonized Tariff Schedule of the United States resulting from the 
entry into force of certain provisions in the Uruguay Round Agreement 
on July 1, 1995, and with respect to the licensing for certain dairy 
product shipments denied entry during January 1-3, 1995.

DATES: This interim rule will be effective upon May 2, 1995. Comments 
should be submitted on or before June 16, 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, S.W., Agricultural Box 1025, Washington, D.C. 
20250-1025. 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, S.W., Washington, D.C. 20250, or telephone (202) 
720-2916.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This supplement to the 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 relating to foreign affairs 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 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 this interim rule, 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, D.C. 20503. Attention: Desk Officer for 
USDA.

Executive Order 12778

    This interim rule has been reviewed under Executive Order 12778. 
The provisions of this supplement to the 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 interim rule would not have 
retroactive effect.

Background

    This interim rule amends Import Regulation 1, Revision 7 which 
governs the administration of the import licensing system for certain 
dairy products which are subject to in-quota tariff rates proclaimed in 
the Harmonized Tariff Schedule of the United States (HTS). Imports of 
certain cheese and non-cheese dairy products are subject to tariff-rate 
quotas proclaimed in the HTS as a result of the entry into force of the 
Uruguay Round Agreement.
    These amendments to the Import Regulation are being published as an 
interim rule because the Uruguay Round commitments taking effect on 
July 1, 1995, were not finalized pursuant to bilateral agreements until 
recently and it is necessary to provide an application period as soon 
as possible in order to issue licenses prior to the effective date. 
With respect to certain dairy product shipments denied entry during 
January 1-3, 1995, these licenses must also be issued as soon as 
possible to fulfill our Uruguay Round commitments. Therefore, good 
cause is shown to publish this rule as interim without prior public 
participation.
    This interim rule is issued under the authority of section 103 and 
404 of the Uruguay Round Agreements Act and the notes to Chapter 4 and 
General Note 15 of the HTS. It completes the Uruguay Round 
implementation process for the 1995 quota year by establishing the 
import licensing system for the quantities of cheese and non-cheese 
dairy products subject to in-quota tariff rates in the HTS effective 
July 1, 1995.
    The following changes made by this interim rule are intended to 
fulfill the Uruguay Round obligations of the United States and to 
facilitate the administration of the tariff-rate import quota licensing 
system for 1995.
    1. The Import Regulation is amended to: (1) Administer Uruguay 
Round tariff-rate quotas for those countries whose Uruguay Round 
schedules of concessions will take effect on July 1, 1995; (2) 
establish Appendix 3 supplementary licenses for such 
[[Page 21426]] countries and the respective in-quota tariff-rate quota 
quantities of cheese, and (3) provide for an application period for 
such licenses.
    2. The Import Regulation is amended to permit the European 
Community (EC) to endorse in writing eligible applicants for the 
increments in quantities of cheese subject to the in-quota tariff rate 
as provided for in the Uruguay Round Agreement.
    3. The Import Regulation is also amended to ensure that the orderly 
marketing of trade in the United States is not disrupted for articles 
for which entry was attempted into the United States after January 1, 
1995, without prior knowledge that an unlicensed article would be made 
subject to licensing as of January 1, 1995. This interim rule provides 
a very limited exclusion from license-size limitations for certain 
shipments which were denied entry into the United States by the U.S. 
Customs Service during a brief period the Department considers 
licensing to have been unanticipated. This exclusion applies only to 
that part of the in-quota tariff-rate quantity which had been 
unlicensed prior to January 1, 1995 and will be prorated among 
licensees as necessary.
    An Advance Notice of Proposed Rulemaking (ANPR) was published in 
the Federal Register on June 2, 1994, seeking comments on methods for 
allocating articles that would be subject to the in-quota tariff rate 
proclaimed in the HTS on January 1, 1995, and suggestions on other 
changes intended to update and make more enforceable the provisions of 
the Import Regulation. A proposed rule embodying fundamental changes to 
the Import Regulation as envisaged in the ANPR will be published in the 
near future.
    An interim rule was published in the Federal Register on January 6, 
1995, which amended the Import Regulation to the extent necessary to 
implement the Uruguay Round commitments which became effective on 
January 1, 1995. The interim rule established an import licensing 
system for in-quota tariff-rate quota quantities of cheese and certain 
other non-cheese dairy products subject to in-quota tariff rates in the 
HTS. These quantities included both the quantities which were 
previously subject to absolute quotas under section 22 of the 
Agricultural Adjustment Act of 1933, as amended, and additional 
quantities of cheese and certain non-cheese dairy articles negotiated 
under the Uruguay Round of multilateral trade negotiations for those 
countries which implemented their Uruguay Round commitments on January 
1, 1995. The interim rule provided for a 30-day public comment period 
ending on February 21, 1995. Written comments were received from seven 
different entities.
    In addition to amending the Import Regulation to implement the 
changes to the HTS effective on July 1, 1995, this interim rule amends 
the Import Regulation in accordance with certain comments on the 
interim rule published on January 6, 1995, recommending changes deemed 
both administratively possible or necessary to implement during the 
remainder of the 1995 quota year. Other comments on the January 6 
interim rule will be considered for inclusion in the proposed rule as 
envisaged in the ANPR.
    The comment reflected herein requested entry for that quantity of 
butter substitutes being detained which was previously subject to an 
unlicensed global quota. The interim rule provides for a very limited 
and strict license size exclusion to enter certain butter substitutes. 
Another comment recommended clarifying the minimum license size of 
supplementary quota shares and certain article descriptions in Appendix 
1 and Appendix 2 of the interim rule. This interim rule makes these 
technical corrections.

List of Subjects in 7 CFR Part 6

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

Interim Rule

PART 6--[AMENDED]

    Accordingly, 7 CFR Part 6, Subpart--Tariff-Rate Quotas is amended 
as follows:
    1. Section 6.25 is revised by revising the first sentence of 
paragraph (c)(2) to read as follows:


Sec. 6.25  Eligibility.

* * * * *
    (c) * * *
    (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 for those 
licenses issued for in-quota tariff-rate quota quantities which became 
effective on January 1, 1995, and no earlier than May 10, 1995 and no 
later than May 19, 1995 for those licenses that will be issued for in-
quota tariff-rate quota quantities that will become effective on July 
1, 1995. * * *
* * * * *
    2. Section 6.26 is amended by revising the second sentence of 
paragraph (c)(3)(ii), revising paragraph (d)(2), and revising paragraph 
(d)(3) (i) and (ii) to read as follows:


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

* * * * *
    (c) * * *
    (3) * * *
    (ii) * * * If eligible applicants whose applications have been 
endorsed by the government of the supplying country as set forth in 
(c)(3)(i) of this section request an aggregate amount of a specific 
quota from a specific country (not the EC, except for those additional 
quantities of cheese made subject to the in-quota tariff rate in the 
Uruguay Round Agreement) smaller than is available for allocation, or 
if no endorsement is made, the Licensing Authority shall allocate 
remaining portions among applicants who have not been endorsed, 
following a procedure identical to that set forth in paragraph (c)(2) 
of this section for the EC, replacing, for this purpose, the words 
``the EC'' wherever they appear with ``a particular non-EC country''.
* * * * *
    (d) * * *
    (2) The size of a supplementary quota share issued to an eligible 
applicant shall not exceed 57,000 kilograms, except that this maximum 
share provided for in (d)(ii) above shall not be applicable to that 
quantity of an in-quota tariff-rate quota which was not subject to 
licensing prior to January 1, 1995 when the import of such product was 
offered for entry and denied entry into the United States by U.S. 
Customs during January 1-3, 1995. Not later than June 1, 1995, an 
applicant must submit with its application, an invoice, bill of lading, 
and other relevant documentation to the Licensing Authority for his 
determination that there is sufficient documentary evidence that such 
import was offered for entry during January 1-3, 1995. If the Licensing 
Authority determines that a quantity greater than that available is 
requested by eligible applicants, the quantity available will be 
prorated among the licensees.
    (3) * * *
    (i) 19,000 kilograms where the total amount available for 
allocation is 550,000 kilograms or less;
    (ii) 38,000 kilograms where the total amount available for 
allocation is greater than 550,000 kilograms.
    3. In Appendix 1, the article description for Edam and Gouda in 
Group II(a) and the article description for Italian-type cheese in 
Group IV(a) are revised as follows: [[Page 21427]] 

Appendix 1--Articles Subject to the Historical and Nonhistorical 
Licensing Provisions of Import Regulation 1, Revision 7, and Respective 
Annual Import Quotas for Each Quota Year

* * * * *

Group II

    (a) Edam and Gouda cheese, and cheese and substitutes for cheese 
containing, or processed from Edam and Gouda cheese (Note 20) * * *
* * * * *

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), and cheeses and substitutes for cheese 
containing, or processed from, such Italian-type cheeses, whether or 
not in original loaves (Note 21) * * *
* * * * *
    4. In Appendix 2, the article description for Italian-type cheese 
in Group IV (a) is revised as follows:

Appendix 2--Articles Subject to the Historical and Nonhistorical 
Licensing Provisions of Import Regulation 1, Revision 7, and Respective 
Annual Import Quotas for Each Quota Year

* * * * *

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), and cheeses and substitutes for cheese 
containing, or processed from, such Italian-type cheeses, whether or 
not in original loaves (Note 21) * * *
* * * * *
    5. Appendix 3 is revised to read as follows:

Appendix 3--Articles Subject to the Supplementary Licensing Provisions 
of Import Regulation 1, Revision 7, and Respective Annual Import Quotas 
for Each Quota Year

------------------------------------------------------------------------
                                                              Annual    
                                                           supplementary
               Article by HTS note number                      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 and 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 this subchapter) (Note 16)......................       2,978,834
    Australia...........................................         291,667
    Austria.............................................          45,500
    Costa Rica..........................................       1,000,000
    Czech Republic......................................         200,000
    EC..................................................         150,000
    Poland*.............................................         300,000
    Slovak Republic.....................................         600,000
    Switzerland.........................................          41,667
    Uruguay.............................................         250,000
    Any Country.........................................         100,000
Blue-mold cheese (except Stilton produced in the United                 
 Kingdom) and cheese and substitutes for cheese                         
 containing, or processed from, blue-mold cheese (Note                  
 17)....................................................          88,333
    Chile...............................................          13,333
    Czech Republic......................................          50,000
    EC..................................................          25,000
Cheddar cheese, and cheese and substitutes for cheese                   
 containing, or processed from, Cheddar cheese (Note 18)       1,328,333
    Australia...........................................         208,333
    EC..................................................          83,333
    Chile...............................................          36,667
    Czech Republic......................................          50,000
    New Zealand.........................................         850,000
    Any Country.........................................         100,000
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)....................           8,333
    EC..................................................           8,333
Edam and Gouda cheese, and cheese and substitutes for                   
 cheese containing, or processed from, Edam and Gouda                   
 Cheese (Note 20).......................................         293,333
    Argentina...........................................         110,000
    Austria.............................................          33,333
    EC..................................................          50,000
    Czech Republic......................................         100,000
Italian-Type cheeses, made from cow's milk (Romano made                 
 from cow's milk, Reggiano, Parmesan, Provolone,                        
 Provoletti, Sbrinz, and Goya not in original loaves)                   
 and cheese and substitutes for cheese containing, or                   
 processed from, such Italian-Type cheeses, whether or                  
 not in original loaves (Note 21).......................       4,281,666
    Argentina...........................................       1,890,000
    EC..................................................          58,333
    Uruguay.............................................         750,000
    Hungary.............................................         400,000
    Poland*.............................................       1,100,000
    Romania.............................................          83,333
Swiss and Emmenthaler cheese other than with eye                        
 formation Gruyere-process, and cheese and substitutes                  
 for cheese containing, or processed from such cheese                   
 (Note 22)..............................................          31,666
    Austria.............................................           6,666
    EC..................................................          25,000
Swiss and Emmenthaler cheese with eye formation (Note                   
 25)....................................................      1,043,332 
[[Page 21428]]                                                          
                                                                        
    Austria.............................................          18,333
    EC..................................................          58,333
    Sweden..............................................         150,000
    Switzerland.........................................          16,666
    Czech Republic......................................         400,000
    Hungary.............................................        400,000 
------------------------------------------------------------------------
*Issuance of licenses and quota quantities are conditioned on completion
  of a bilateral memorandum of understanding between the Governments of 
  the United States and Poland.                                         

    Signed at Washington, D.C., on April 21, 1995.
Richard E. Rominger,
Acting Secretary of Agriculture.
[FR Doc. 95-10712 Filed 4-27-95; 12:36 pm]
BILLING CODE 3410-02-P