[Federal Register Volume 60, Number 219 (Tuesday, November 14, 1995)]
[Proposed Rules]
[Pages 57198-57200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27817]



 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 60, No. 219 / Tuesday, November 14, 1995 / 
Proposed Rules  

[[Page 57198]]


DEPARTMENT OF AGRICULTURE

Consolidated Farm Service Agency

7 CFR Part 782

RIN 0560-AE37


End-Use Certificate Program

AGENCY: Consolidated Farm Service Agency, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Consolidated Farm Service Agency (CFSA) is proposing to 
amend the regulations found at 7 CFR part 782 which govern the End-Use 
Certificate Program. The End-Use Certificate Program is administered in 
accordance with section 321(f) of the North American Free Trade 
Agreement Implementation Act. This rule proposes to amend reporting 
requirements, reporting deadlines, and the required notification 
process in a manner that will increase program effectiveness and 
efficiency for government and affected industries. If adopted, the 
provisions of this regulation would simplify the reporting burden 
placed on importers, subsequent buyers, end users and exporters by 
extending reporting deadlines and incorporating alternative reporting 
methods.
    Other minor revisions to the regulations are proposed as well.

DATES: Written comments must be received on or before December 14, 1995 
in order to be assured of consideration.

ADDRESSES: Comments concerning this proposed rule must be mailed to 
Deputy Administrator, Commodity Operations, CFSA, P.O. Box 2415, 
Washington, DC 20013-2415. All written comments will be available for 
public inspection in Room 5962, South Building, U.S. Department of 
Agriculture, 14th and Independence Avenue SW., Washington, DC, between 
8 a.m. and 5 p.m. Monday through Friday, except holidays.

FOR FURTHER INFORMATION CONTACT: Steve Gill, Acting Deputy Director, 
Warehouse and Inventory Division, CFSA, Box 2415, Washington, DC 20013-
2415; telephone (202) 720-5647 or FAX (202) 690-0014.

SUPPLEMENTARY INFORMATION:

 Executive Order 12866

    This proposed rule has been determined to be significant and was 
reviewed by the Office of Management and Budget under Executive Order 
12866.

Executive Order 12778

    This proposed rule has been reviewed in accordance with Executive 
Order 12778. The provisions of this proposed rule do not preempt State 
laws, are not retroactive, and do not involve administrative appeals.

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 Analysis is needed.

Executive Order 12372

    This program/activity 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).

Paperwork Reduction Act

    This rule proposes to amend the reporting requirements by extending 
reporting deadlines and incorporating alternative reporting methods. 
Since February 27, 1995, the effective date of the end-use certificate 
program, CFSA has determined that entities required to file form CFSA-
750, End-Use Certificate for Wheat, and form CFSA-751, Wheat 
Consumption and Resale Report, have encountered some difficulty in 
meeting the requirement that these forms be filed with the Kansas City 
Commodity Office (KCCO) within 10 workdays following the date of entry, 
or the date of resale, as applicable. This proposal to increase the 
reporting requirement from 10 workdays following the date of entry or 
resale, as applicable, to 15 workdays following the date of entry or 
resale will provide increased flexibility to the entity that is 
required to file the report without decreasing the efficiency of the 
program on the part of the government. Additionally, numerous requests 
have been received by CFSA to permit facsimile transmission and 
computer generation of forms CFSA-750, End-Use Certificate for Wheat, 
and CFSA-751, Wheat Consumption and Resale Report. In an attempt to 
utilize technology that is currently available, CFSA is proposing that 
such report submissions will be acceptable under the End-Use 
Certificate Program. While all of the entities that are required to 
file forms CFSA-750 and CFSA-751 have the potential of being affected 
by these proposed changes in reporting requirements, no entities will 
be adversely affected.
    The changes proposed in this rule do not impact recordkeeping 
requirements.
    The reporting requirements for CFSA-750 and CFSA-751 were 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB control number 0560-0151.
    These revised reporting requirements will be submitted to OMB for 
approval under the provisions of 44 U.S.C. 35. Send comments regarding 
this collection of information to: Department of Agriculture, Clearance 
Officer, Office of Information Resources Management, Room 404-W, 
Washington, DC 20250, and Regulatory Affairs of OMB, Attention: Desk 
Officer for USDA, Room 3201, New Executive Office Building, Washington, 
DC 20503.

Regulatory Flexibility Act

    On January 26, 1995, CFSA published a final rule that established 
program requirements for the End-Use Certificate Program. At that time, 
a Regulatory Flexibility Analysis was prepared to discuss the impact of 
the implementation of the End-Use Certificate Program. A copy of this 
Regulatory Flexibility Analysis is available upon request from Helen 
Linden, Warehouse and Inventory Division, CFSA, P.O. Box 2415, 
Washington, DC 20013-2415; telephone: (202) 690-4321.
    The changes that are proposed in this rule are intended to reduce 
the reporting burden for all businesses, including small businesses. 
Because these proposed changes will not have an adverse impact on a 
substantial number of small businesses, a Regulatory Flexibility 
Assessment is not required for this proposed rule.

[[Page 57199]]


Background

    This rule proposes to amend the regulations at 7 CFR part 782 with 
respect to the U.S. End-Use Certificate Program. Since February 27, 
1995, the effective date for the implementation of the End-Use 
Certificate Program, several items have been identified that could 
improve the effectiveness and the efficiency of the End-Use Certificate 
Program.
    The final rule published on January 26, 1995, at 60 FR 5087, did 
not include a specific time requirement for importers and subsequent 
buyers to inform subsequent buyers or end users that wheat being 
purchased is of Canadian origin, and as such, is subject to these 
regulations. In some instances, importers are delivering Canadian wheat 
to subsequent buyers and end users through grain handlers. CFSA has 
found that this method of transporting Canadian wheat results in some 
grain handlers acquiring title to a portion of the wheat, thus becoming 
either a subsequent buyer or end user. The general interpretation of 
existing regulations by affected parties is that the importer or 
subsequent buyer has 10 days to provide a copy of the form End-Use 
Certificate for Wheat, ASCS-750, to the subsequent buyer or exporter, 
which mirrors the requirement for submitting forms to the Kansas City 
Commodity Office (KCCO). This delay in notification has resulted in 
situations where subsequent buyers and end users have either commingled 
Canadian wheat with U.S. origin wheat or resold Canadian wheat before 
they were informed that the wheat is of Canadian origin. Therefore, 
CFSA proposes to amend the regulations at 7 CFR part 782 to require 
importers and subsequent buyers to provide immediate notification to 
purchasers and grain handlers when wheat being sold is of Canadian 
origin.
    Secondly, in an effort to simplify and expedite the receipt of 
reports, this proposed rule would extend the time requirements for 
filing form ASCS-750 with KCCO from 10 to 15 workdays following the 
date of entry and incorporate provisions which will permit the 
electronic transmission and computer generation of required forms.
    Finally, this proposed rule includes nomenclature changes to revise 
form numbers ASCS-750 and ASCS-751 to CFSA-750 and CFSA-751, 
respectively.
    For the reasons set out in the preamble, 7 CFR part 782 is proposed 
to be amended as follows:

PART 782--END-USE CERTIFICATE PROGRAM

    1. The authority citation for part 782 continues to read as 
follows:

    Authority: 19 U.S.C. 3391(f).

    2. In part 782 all references to ``ASCS-750'' are revised to read 
``CFSA-750.''
    3. In part 782 all references to ``ASCS-751'' are revised to read 
``CFSA-751.''
    4. Section 782.2 is amended to add the following definition 
immediately following the definition for ``Entry'':


Sec. 782.2   Definition.

* * * * *
    Grain handler means an entity other than the importer, exporter, 
subsequent buyer, or end user that handles wheat on behalf of an 
importer, exporter, subsequent buyer, or end user.
* * * * *
    5. Section 782.4 is revised to read as follows:


Sec. 782.4   OMB control numbers assigned pursuant to the Paperwork 
Reduction Act.

    The information collection requirements in this part have been 
approved by the Office of Management and Budget and assigned OMB 
control number 0560-0151.
    6. Section 782.12 is amended by:
    A. Removing the number ``10'' in the first sentence of paragraph 
(a) and adding the number ``15'' in its place,
    B. Removing paragraph (a)(8),
    C. Redesignating paragraphs (a)(9) and (a)(10) as paragraphs (a)(8) 
and (a)(9), respectively,
    D. Redesignating paragraphs (b), (c), and (d) as paragraphs (d), 
(e), and (f), respectively, and revising newly redesignated paragraph 
(e) to read as set forth below,
    E. Adding new paragraphs (b) and (c) to read as follows:


Sec. 782.12   Filing CFSA-750, End-Use Certificate for Wheat.

* * * * *
    (b) Importers may provide computer generated form CFSA-750, 
provided such computer generated forms:
    (1) Are approved in advance by KCCO,
    (2) Contain a KCCO assigned serial number, and
    (3) Contain all of the information required in paragraphs (a)(1) 
through (a)(9) of this section.
    (c) KCCO will accept form CFSA-750 submitted through the following 
methods:
    (1) Mail service, including express mail,
    (2) Facsimile machine, and
    (3) Other electronic transmissions, provided such transmissions are 
approved in advance by KCCO. The importer remains responsible for 
ensuring that electronically transmitted forms are received in 
accordance with paragraph (a) of this section.
* * * * *
    (e) Distribution of form CFSA-750 will be as follows:
    (1) If form CFSA-750 is submitted to KCCO in accordance with 
paragraph (c)(1) of this section, the original shall be forwarded to 
Kansas City Commodity Office, Warehouse License and Contract Division, 
P.O. Box 419205, Kansas City, MO 64141-6205, by the importer,
    (2) If form CFSA-750 is submitted to KCCO in accordance with 
paragraphs (c)(2) or (c)(3) of this section, the original form CFSA-750 
that is signed and dated by the importer in accordance with paragraph 
(d) of this section shall be maintained by the importer,
    (3) One copy shall be retained by the importer,
    (4) The importer shall provide a photocopy to the end user or, if 
the wheat is purchased for purposes of resale, the subsequent buyer(s).
* * * * *
    7. Section 782.13 is amended by:
    A. Redesignating paragraphs (b) and (c) as paragraphs (c) and (d), 
respectively, and by removing the number ``10'' in the new paragraph 
(d) and adding the number ``15'' in its place,
    B. Adding paragraph (b) to read as follows:


Sec. 782.13  Importer Responsibilities.

* * * * *
    (b) Immediately notify each subsequent buyer, grain handler, or end 
user that the wheat being purchased or handled originated in Canada and 
may only be commingled with U.S.-produced wheat by the end user or when 
loaded onto a conveyance for direct delivery to the end user or a 
foreign country.
* * * * *
    8. Section 782.15 is amended by:
    A. Removing the number ``10'' in paragraph (a)(1) and adding the 
number ``15'' in its place, and
    B. Adding paragraphs (e), (f), and (g) to read as follows:


Sec. 782.15  Filing CFSA-751, Wheat Consumption and Resale Report.

* * * * *
    (e) Filers may provide computer generated form CFSA-751, provided 
such computer generated forms:
    (1) Are approved in advance by KCCO, and 

[[Page 57200]]

    (2) Contain the information required in paragraphs (b)(1) through 
(b)(9).
    (f) KCCO will accept form CFSA-751 submitted through the following 
methods:
    (1) Mail service, including express mail,
    (2) Facsimile machine, and
    (3) Other electronic transmissions, provided such transmissions are 
approved in advance by KCCO. The importer remains responsible for 
ensuring that electronically transmitted forms are received in 
accordance with this section.
    (g) Distribution of form CFSA-751 will be as follows:
    (1) If form CFSA-751 is submitted to KCCO in accordance with 
paragraph (f)(1) of this section, the original shall be forwarded to 
Kansas City Commodity Office, Warehouse License and Contract Division, 
P.O. Box 419205, Kansas City, MO 64141-6205, by the importer, end user, 
exporter, or subsequent buyer,
    (2) If form CFSA-751 is submitted to KCCO in accordance with 
paragraphs (f)(2) or (f)(3) of this section, the original form CFSA-751 
that is signed and dated by the importer, end user, exporter, or 
subsequent buyer in accordance with paragraph (b)(8)(v) or (b)(9)(iv) 
of this section shall be maintained by the importer, end user, 
exporter, or subsequent buyer,
    (3) One copy shall be retained by the importer, end user, exporter, 
or subsequent buyer.
* * * * *
    9. Section 782.17 is amended by:
    A. Redesignating paragraph (b) as paragraph (c), and
    B. Adding a new paragraph (b) to read as follows:


Sec. 782.17  Wheat purchased for resale.

* * * * *
    (b) The importer or subsequent buyer shall immediately notify each 
subsequent buyer, grain handler, exporter, or end user that the wheat 
being purchased or handled originated in Canada and may only be 
commingled with U.S.--produced wheat by the end user or when loaded 
onto a conveyance for direct delivery to the end use or a foreign 
country.
* * * * *
    Signed at Washington, DC, on November 3, 1995.
Grant Buntrock,
Administrator, Consolidated Farm Service Agency.
[FR Doc. 95-27817 Filed 11-13-95; 8:45 am]
BILLING CODE 3410-05-P