[Federal Register Volume 60, Number 177 (Wednesday, September 13, 1995)]
[Rules and Regulations]
[Pages 47453-47455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22817]



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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.

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SUMMARY: This rule amends Import Regulation 1, Revision 7 which governs 
the administration of the import licensing system for certain dairy 
products. A license qualifies imports of certain dairy products for 
entry at the in-quota tariff rates established in the Harmonized Tariff 
Schedule of the United States (HTS). This rule implements the Uruguay 
Round Agreements Market access concessions.

DATES: This interim rule will be effective upon September 13, 1995. 
Comments should be submitted on or before October 30, 1995 to be 
assured of consideration.

ADDRESSES: Comments should be sent to the Dairy Import Quota Manager, 
Import Policies and Programs Division, AG Box 1021, Foreign 
Agricultural Service, U.S. Department of Agriculture, 14th and 
Independence Avenue, S.W., Washington, D.C. 20250-1021. All comments 
received will be available for public inspection in room 5541-S at the 
above address.

FOR FURTHER INFORMATION CONTACT: Richard Warsack, Import Programs 
Group, Import Policies and Programs Division, AG Box 1021, Foreign 
Agricultural Service, U.S. Department of Agriculture, 14th and 
Independence Avenue, S.W., Washington, D.C. 20250-1021, 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). 

[[Page 47454]]


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 information collection for this interim rule was 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.

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 interim rule would not have retroactive effect.

Background

    This interim rule amends Import Regulation 1, Revision 7 
(``Revision 7''), 7 CFR Part 6, which prescribes a system for licensing 
importation of certain articles of dairy products which are subject to 
tariff-rate quotas. Importers who hold licenses issued pursuant to 
Revision 7 may enter these articles at the applicable lower in-quota 
tariff rate; importers without license may enter these articles, but 
are required to pay duty at the applicable higher over-quota rate.
    Tariff-rate quotas for certain articles of dairy products resulted 
from the Uruguay Round negotiations, and have been proclaimed in the 
Harmonized Tariff System of the United States (``HTS''). This interim 
rule is authorized by sections 103 and 404 of the Uruguay Round 
Agreements Act, and the notes to Chapter 4 and General Note 15 of the 
HTS.
    In the Uruguay Round negotiations, the United States agreed to 
liberalize access to the U.S. market for imports of certain articles of 
dairy products. The United States agreed to convert the prior system of 
absolute quotas to a system of tariff-rate quotas. The United States 
also committed to increase, each year over a six-year period, the 
quantities of those articles that would be eligible for the lower in-
quota rate of duty beyond the amounts that had been permitted to enter 
under the prior absolute quota system. Finally, the United States 
agreed to allocate those increased quantities among specified supplier 
countries.
    The United States agreed to implement these commitments as of the 
dates on which the various supplier countries began to implement their 
own Uruguay Round Agreements market access concessions. For most 
supplier countries, this was January 1, 1995; however, there were six 
countries that did not begin to implement their Uruguay Round 
concessions until July 1, 1995.
    The Uruguay Round concessions and access commitments on dairy 
products have required the United States to make changes in its system 
for regulating imports of dairy products. Under the prior regime of 
absolute quotas, an importer had to obtain a license in order to import 
an article of dairy products subject to a quota; with very limited 
exceptions no imports were permitted without a license. The new tariff-
rate quota system will continue to operate on the basis of licenses but 
with a basic difference. A tariff-rate quota is essentially a two-
tiered tariff system. An importer that obtains a license may enter a 
specified quantity of an article at the lower, in-quota rate of duty. 
An importer without a license will no longer be precluded from entering 
an article; he or she may enter the article, but will be assessed duty 
at the higher over-quota rate.
    USDA began to implement the post-Uruguay Round system when it 
published an interim rule on January 6, 1995 (60 Fed. Reg. 1989-1996) 
amending Revision 7. That interim rule added a new Appendix 3 which 
specified the quantities of articles of dairy products that, effective 
January 1, 1995, had become available for supplementary licenses during 
quota year 1995. The quantities specified reflected U.S. commitments to 
those supplier countries who had implemented their own Uruguay Round 
access commitments on January 1, 1995. The January 6 interim rule also 
established new eligibility requirements for applicants seeking 
licenses for non-cheese articles listed in Appendix 3, and prescribed 
methods for allocating such non-cheese licenses. Finally, the January 1 
interim rule changed various references in the text of the rule to 
reflect the conversion in the U.S. tariff system from the old Tariff 
Schedules of the United States (``TSUS'') to the HTS.
    On May 2, 1995, USDA published a second interim rule (60 FR 21425-
28), again amending Revision 7 by revising Appendix 3 to reflect 
additional amounts of dairy products that became available, effective 
July 1, 1995, for supplementary licenses. These increases implemented 
U.S. access commitments to the six countries who had begun to implement 
their own access commitments effective July 1, 1995.
    This interim rule again amends Appendix 3 to reflect additional 
quantities of cheese and cheese products that will be eligible, 
effective January 1, 1996, for supplementary license. These increases 
reflect the additional amounts of access required to fulfill the second 
year of the six-year commitment. This interim rule also changes, from 
August 1 to October 1, the first day on which an application for 
nonhistorical and supplementary license may be postmarked to receive 
consideration. Finally, it modifies the eligibility requirements for 
supplementary licenses for non-cheese articles by changing the time 
period during which entries or exports of dairy products have to occur.
    Although this interim rule, like the two previous interim rules, 
reflects only modest adjustments in the basis operation of the dairy 
products import system, USDA anticipates that it will soon propose more 
fundamental changes to the system. On June 2, 1994, USDA published an 
Advance Notice of Proposed Rulemaking (59 Fed. Reg. 28495) seeking 
public comment and suggestions about ways to operate the system of 
dairy product importation. Subsequently, on March 10, 1995, USDA held a 
public hearing at which interested parties voiced their views and 
comments on the current system and presented their suggestions about 
changes or revisions to the system. Having had the benefit of these 
public comments, USDA plans to publish a proposed rule in the near 
future.

List of Subjects in 7 CFR Part 6

    Agricultural commodities, Cheese, Dairy products, and Imports.

Interim Rule

    Accordingly, 7 CFR Part 6, Subpart--Tariff-Rate Quotas is amended 
as follows:
    1. The authority citation is revised to read as follows:

    Authority: Additional U.S. Notes 6, 7, 8, 12, 14, 16-23 and 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, as amended (31 U.S.C. 9701), and secs. 103 and 404, Pub. L. 
103-465, 108 Stat. 4819 and 4959 (19 U.S.C. 3513 and 3601).

    2. Section 6.25 is amended by revising paragraph (b)(4), removing 
paragraph (c)(2), and redesignating paragraph (c)(3) as paragraph 
(c)(2) and revising redesignated paragraph (c)(2)(ii) to read as 
follows: 

[[Page 47455]]



Sec. 6.25  Eligibility.

* * * * *
    (b) * * *
    (4) An application will not be approved if the submission of the 
evidence and certifications required to establish nonhistorical 
eligibility is postmarked before October 1 or later than November 1 of 
the year preceding the quota year for which the license is requested. 
If October 1 falls on a Saturday, Sunday, Federal holiday or day which 
is not a full workday for the United States Postal Service, 
applications postmarked on October 1 or any subsequent day(s) up to and 
including the next full workday for the United States Postal Service 
will be treated the same in determining priority in the issuance of 
licenses, in the issuance of the import licenses.
    (c) * * *
    (2) * * *
    (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 12 month period 
ending August 1, 1995; 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 12 month period 
ending August 1, 1995.
* * * * *
    3. 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 Tariff-Rate 
                  Import Quotas for the 1996 Quota Year                 
                                                                        
                                                               Annual   
                                                           supplementary
                Article by HTS note number                     quota    
                                                            (kilograms) 
                                                                        
Butter (Note 6)..........................................     4,256,311 
Dried Skim Milk (Note 7).................................     1,241,359 
Dried Whole Milk (Note 8)................................       958,125 
Butter Substitutes Containing over 45% by weight of                     
 butterfat and butteroil (Note 14).......................     4,000,500 
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).......................     4,882,000 
    Australia............................................       833,333 
    Austria..............................................       182,000 
    Costa Rica...........................................     1,550,000 
    Czech Republic.......................................       200,000 
    EC...................................................       600,000 
    Poland...............................................       300,000 
    Slovak Republic......................................       600,000 
    Switzerland..........................................       166,667 
    Uruguay..............................................       250,000 
    Any Country..........................................       200,000 
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).....................................................       176,667 
    Chile................................................        26,667 
    Czech Republic.......................................        50,000 
    EC...................................................       100,000 
Cheddar cheese, and cheese and substitutes for cheese                   
 containing, or processed from, Cheddar cheese (Note 18).     2,673,333 
    Australia............................................       416,667 
    EC...................................................       333,333 
    Chile................................................        73,333 
    Czech Republic.......................................        50,000 
    New Zealand..........................................     1,700,000 
    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).....................        33,333 
    EC...................................................        33,333 
Edam and Gouda cheese, and cheese and substitutes for                   
 cheese containing, or processed from, Edam and Gouda                   
 Cheese (Note 20)........................................       543,333 
    Argentina............................................       110,000 
    Austria..............................................       133,333 
    EC...................................................       200,000 
    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)........................     4,540,000 
    Argentina............................................     1,890,000 
    EC...................................................       233,333 
    Uruguay..............................................       750,000 
    Hungary..............................................       400,000 
    Poland ..............................................     1,100,000 
    Romania..............................................       166,667 
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)...............................................       126,667 
    Austria..............................................        26,667 
    EC...................................................       100,000 
Swiss and Emmenthaler cheese with eye formation (Note 25)     1,473,333 
    Austria..............................................        73,333 
    EC...................................................       233,333 
    Sweden...............................................       300,000 
    Switzerland..........................................        66,667 
    Czech Republic.......................................       400,000 
                                                                        

    Signed at Washington, D.C. on September 7, 1995.
Dan Glickman,
Secretary of Agriculture.
[FR Doc. 95-22817 Filed 9-11-95; 12:03 pm]
BILLING CODE 3410-01-P