[Federal Register Volume 60, Number 150 (Friday, August 4, 1995)]
[Proposed Rules]
[Pages 39890-39893]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19182]



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DEPARTMENT OF AGRICULTURE
9 CFR Part 94

[Docket No. 95-050-1]


Uruguay; Change in Disease Status

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: We are proposing to declare Uruguay free of rinderpest and 
foot-and-mouth disease. As part of this proposed action, we would add 
Uruguay to the list of countries that, although declared free of 
rinderpest and foot-and-mouth disease, are subject to restrictions on 
meat and other animal products offered for importation into the United 
States. Declaring Uruguay free of rinderpest and foot-and-mouth disease 
appears to be appropriate because the last outbreak of foot-and-mouth 
disease in Uruguay occurred in 1989, there have been no vaccinations 
for foot-and-mouth disease in Uruguay since June 1994, and rinderpest 
has never existed in Uruguay. This proposed rule would remove the 
prohibition on the importation into the United States, from Uruguay, of 
ruminants and fresh, chilled, and frozen meat of ruminants, although 
those importations would be subject to certain restrictions. This 
proposed rule would also relieve certain prohibitions and restrictions 
on the importation, from Uruguay, of milk and milk products of 
ruminants.

 
[[Page 39891]]

DATES: Consideration will be given only to comments received on or 
before October 3, 1995.

ADDRESSES: Please send an original and three copies of your comments to 
Docket No. 95-050-1, Regulatory Analysis and Development, PPD, APHIS, 
suite 3C03, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please 
state that your comments refer to Docket No. 95-050-1. Comments 
received may be inspected at USDA, room 1141, South Building, 14th 
Street and Independence Avenue SW., Washington, DC, between 8 a.m. and 
4:30 p.m., Monday through Friday, except holidays. Persons wishing to 
inspect comments are requested to call ahead on (202) 690-2817 to 
facilitate entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Dr. John Blackwell, Senior Staff 
Microbiologist, Import-Export Products, National Center for Import and 
Export, VS, APHIS, 4700 River Road Unit 40, Riverdale, MD 20737-1231, 
(301) 734-5875.

SUPPLEMENTARY INFORMATION:

Background

    The regulations in 9 CFR part 94 (referred to below as the 
regulations) govern the importation into the United States of specified 
animals and animal products in order to prevent the introduction into 
the United States of various animal diseases, including rinderpest and 
foot-and-mouth disease (FMD). Rinderpest and FMD are dangerous and 
destructive communicable diseases of ruminants and swine.
    Section 94.1(a)(1) of the regulations provides that rinderpest or 
FMD exists in all countries of the world except those listed in 
Sec. 94.1(a)(2), which have been declared to be free of both diseases. 
We will consider declaring a country free of rinderpest and FMD if, 
among other things, there have been no reported cases of the diseases 
in that country for at least the previous 1-year period and if no 
vaccinations for rinderpest or FMD have been administered to ruminants 
or swine in that country for at least the previous 1-year period.
    The last outbreak of FMD in Uruguay occurred in 1989. There have 
been no vaccinations for FMD in Uruguay since June 1994. Rinderpest has 
never existed in Uruguay. Based on these considerations, the government 
of Uruguay has requested that the United States Department of 
Agriculture (USDA) declare Uruguay free of rinderpest and FMD.
    The Animal and Plant Health Inspection Service (APHIS) reviewed the 
documentation submitted by the government of Uruguay in support of its 
request, and a team of APHIS officials traveled to Uruguay in 1994 to 
conduct an on-site evaluation of the country's animal health program 
with regard to the rinderpest and FMD situation in Uruguay. The 
evaluation consisted of a review of Uruguay's veterinary services, 
diagnostic procedures, vaccination practices, and administration of 
laws and regulations intended to prevent the introduction of rinderpest 
and FMD into Uruguay through the importation of animals, meat, or 
animal products. The APHIS officials conducting the on-site evaluation 
concluded that Uruguay is free of rinderpest and FMD. (Details 
concerning the on-site evaluation are available, upon written request, 
from the person listed under FOR FURTHER INFORMATION CONTACT.)
    Based on the information discussed above, we are proposing to amend 
Sec. 94.1(a)(2) by adding Uruguay to the list of countries declared to 
be free of both rinderpest and FMD. This proposed action would remove 
the prohibition on the importation, from Uruguay, of ruminants and 
fresh, chilled, and frozen meat of ruminants, and would relieve 
restrictions on the importation, from Uruguay, of milk and milk 
products of ruminants. However, because Uruguay has not been declared 
free of hog cholera, the importation into the United States, from 
Uruguay, of pork and pork products would continue to be restricted 
under Sec. 94.9 of the regulations, and the importation of swine from 
Uruguay would continue to be restricted under Sec. 94.10. Also, for the 
reasons discussed below, we would make the importation of meat and 
other animal products of ruminants or swine from Uruguay subject to the 
restrictions in Sec. 94.11.
    We are proposing to amend Sec. 94.11(a) by adding Uruguay to the 
list of countries that have been declared free of rinderpest and FMD 
but from which the importation of meat and other animal products is 
restricted. The countries listed in Sec. 94.11(a) are subject to these 
restrictions because they: (1) Supplement their national meat supply by 
importing fresh, chilled, or frozen meat of ruminants or swine from 
countries that are designated in Sec. 94.1(a) as infected with 
rinderpest or FMD; (2) have a common land border with a country 
designated as infected with rinderpest or FMD; or (3) import ruminants 
or swine from countries designated as infected with rinderpest or FMD 
under conditions less restrictive than would be acceptable for 
importation into the United States.
    Uruguay supplements its national meat supply by importing fresh, 
chilled and frozen meat of ruminants and swine from countries 
designated in Sec. 94.1(a)(1) as countries in which rinderpest or FMD 
exists. In addition, Uruguay has common land borders with Brazil and 
Argentina, which are both designated in Sec. 94.1(a)(1) as countries in 
which rinderpest or FMD exists. As a result, although Uruguay appears 
to qualify for designation as a country free of rinderpest and FMD, 
there is the potential that meat or other animal products produced in 
Uruguay may be commingled with the fresh, chilled, or frozen meat of 
animals from a country in which rinderpest or FMD exists. This 
potential for commingling constitutes an undue risk of introducing 
rinderpest or FMD into the United States.
    Therefore, we are proposing that meat and other animal products of 
ruminants or swine, as well as the ship stores, airplane meals, or 
baggage containing such meat or other animal products, originating in 
Uruguay be subject to the restrictions specified in Sec. 94.11 of the 
regulations and to the applicable requirements contained in the 
regulations of the USDA's Food Safety and Inspection Service at 9 CFR 
chapter III. Section 94.11 generally requires that the meat and other 
animal products of ruminants or swine be: (1) Prepared in an inspected 
establishment that is eligible to have its products imported into the 
United States under the Federal Meat Inspection Act; and (2) 
accompanied by an additional certification from a full-time salaried 
veterinary official of the national government of the exporting country 
stating, among other things, that the meat or other animal product has 
not been commingled with or exposed to meat or other animal products 
originating in, imported from, or transported through a country 
infected with rinderpest or FMD.

Executive Order 12866 and Regulatory Flexibility Act

    This proposed rule has been reviewed under Executive order 12866. 
For this action, the Office of Management and Budget has waived its 
review process required by Executive Order 12866.
    This proposed rule, if adopted, would amend the regulations in part 
94 by adding Uruguay to the list of countries declared to be free of 
rinderpest and FMD. This action would remove the prohibition on the 
importation into the United States, from Uruguay, of ruminants and 
fresh, chilled, and frozen meat of ruminants, although those 

[[Page 39892]]
imports would be subject to certain restrictions.
    The proposed revision would also relieve restrictions on the 
importation, from Uruguay, of milk and milk products of ruminants. This 
action would not relieve certain restrictions on the importation of 
live swine and fresh, chilled, and frozen meat of swine from Uruguay 
because Uruguay is still considered to be affected with hog cholera.
    The primary effects of the proposed change in the regulations would 
be to bovine meat and prepared products. Swine and swine products are 
excluded because of restrictions due to hog cholera, and the United 
States has not imported any mutton, lamb, or goat meat from Uruguay in 
the last 2 years. This situation is not expected to change as a result 
of the proposed rule.
    This proposed rule is not expected to affect United States imports 
of miscellaneous animal products from Uruguay, including embryos, 
semen, breeding animals, and other products.
    The increase in beef imports resulting from the proposed regulation 
change is expected to have a minimal negative impact on producers, 
while benefitting consumers.
    Uruguayan beef production is made up mostly of grass-fed product. 
These animals take longer to reach slaughter weights and are lighter at 
slaughter than grain-fed cattle. As a result, although Uruguayan cattle 
inventories (10.4 million at the end of 1994) are about 10 percent of 
United States cattle inventories (103.3 million on January 1, 1995), 
Uruguayan beef production runs at only 2 to 4 percent of United States 
production. Uruguay currently exports one third of its beef production. 
However, Uruguay is not expected to exceed the 20,000 metric ton (MT) 
tariff-free quota limit for exports of beef into the United States 
established under the General Agreement on Tariffs and Trade (GATT).
    Twenty-two percent of United States beef consumption goes into 
``non table-cut'' applications, such as fast-food hamburgers and other 
prepared meats; 78 percent of United States beef consumption goes into 
consumer applications, such as steak and filet mignon, that require 
beef produced from grain-fed cattle. (Beef produced in the United 
States comes predominantly from grain-fed cattle and is used for 
higher-quality table-cuts.) Most of the beef exported from Uruguay is 
produced from grass-fed cattle and is suitable for lower-quality, non 
table-cut applications. However, select cuts of beef from grass-fed 
cattle may be of the same quality as cuts from grain-fed cattle. For 
the most part, beef exports from Uruguay would affect the market for 
non table-cut beef in the United States.
    Beef and dairy farms and feedlot operators would experience the 
greatest impact as a result of the proposed rule. According to Small 
Business Administration (SBA) criteria, beef and dairy farms with 
annual sales of less than $0.5 million are considered small. In 1992, 
801,940 operations with beef cows were considered small. These small 
farms averaged sales of $20,976 in 1992, as opposed to average sales of 
$1.3 million on large farms.
    Recent USDA data indicated that 152,500 dairy farms were considered 
small. In addition to the sale of dairy products, the sale of culled 
dairy cattle and young stock not retained for milking or breeding 
contributed to dairy farm income. In the worst case scenario, the 
proposed rule would produce a drop in net farm income of $15 on small 
beef farms and $83 on small dairy farms when imports were assumed to 
consist of beef from grass-fed cattle.
    With regards to the sale of dairy products, the Department does not 
anticipate a major increase in exports of milk and milk products from 
Uruguay into the United States as a result of this proposed rule. Only 
about 10 percent of Uruguay's cow herd is made up of dairy cows, and it 
is expected that the increase in beef cattle returns will not 
significantly alter this situation. In addition, all dairy products 
imported into the United States are restricted by quotas except for 
casein, caseinate, and other casein derivatives (hereafter referred to 
as casein), which are dry milk products. The United States does not 
produce casein, but does import more than half of the casein produced 
in the world. Uruguay has not exported casein to the United States in 
recent years. Declaring Uruguay free of FMD is expected to have a 
minimal effect on the amount of casein imported into the United States.
    According to the SBA, feedlots with sales of less than $1.5 million 
are considered small. Recent USDA data indicate that 30 percent of 
feedlots in the United States are considered small. In the worst case 
scenario, the proposed rule would produce a loss of $30 per year in 
gross sales for a small feedlot.
    The impact of the proposed rule on cattle dealers/haulers and 
cattle slaughterers/primary processors would be minimal because the 
reduction in the number of cattle marketed and the number of truck 
hauls required to move them would be very small in relation to the 
current numbers.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action would 
not have a significant economic impact on a substantial number of small 
entities.

Executive Order 12778

    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. If this proposed rule is adopted: (1) All State 
and local laws and regulations that are inconsistent with this rule 
will be preempted; (2) no retroactive effect will be given to this 
rule; and (3) administrative proceedings will not be required before 
parties may file suit in court challenging this rule.

Paperwork Reduction Act

    This proposed rule contains no information collection or 
recordkeeping requirements under the Paperwork Reduction Act of 1980 
(44 U.S.C. 3501 et seq.).

List of Subjects in 9 CFR Part 94

    Animal diseases, Imports, Livestock, Meat and meat products, Milk, 
Poultry and poultry products, Reporting and recordkeeping requirements.
    Accordingly, 9 CFR part 94 would be amended as follows:

PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL 
PLAGUE), VELOGENIC VISCEROTROPIC NEWCASTLE DISEASE, AFRICAN SWINE 
FEVER, HOG CHOLERA, AND BOVINE SPONGIFORM ENCEPHALOPATHY: 
PROHIBITED AND RESTRICTED IMPORTATIONS

    1. The authority citation for part 94 would continue to read as 
follows:

    Authority: 7 U.S.C. 147a, 150ee, 161, 162, and 450; 19 U.S.C. 
1306; 21 U.S.C. 111, 114a, 134a, 134b, 134c, 134f, 136, and 136a; 31 
U.S.C. 9701; 42 U.S.C. 4331, 4332; 7 CFR 2.17, 2.51, and 371.2(d).


Sec. 94.1  [Amended]

    2. In Sec. 94.1, paragraph (a)(2) would be amended by removing 
``and Trust Territory of the Pacific Islands.'' and adding ``Trust 
Territory of the Pacific Islands, and Uruguay.'' in its place.


Sec. 94.11  [Amended]

    5. In Sec. 94.11, paragraph (a), the first sentence would be 
amended by removing ``and Switzerland,'' and adding ``Switzerland, and 
Uruguay,'' in its place.

 
[[Page 39893]]

    Done in Washington, DC, this 31st day of July, 1995.
Lonnie J. King,
Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 95-19182 Filed 8-3-95; 8:45 am]
BILLING CODE 3410-34-P