[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