[Federal Register Volume 61, Number 57 (Friday, March 22, 1996)]
[Proposed Rules]
[Pages 11776-11778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6983]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 1230

[No. LS-96-001]


Pork Promotion, Research, and Consumer Information Order--
Increase in Importer Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer 
Information Act (Act) of 1985 and the Pork Promotion, Research, and 
Consumer Information Order (Order), this proposed rule would increase 
the amount of the assessment per pound due on imported pork and pork 
products to reflect an increase in the 1995 five-market average price 
for domestic barrows and gilts. This proposed action would bring the 
equivalent market value of the live animals from which such imported 
pork and pork products were derived in line with the market values of 
domestic porcine animals. These proposed changes will facilitate the 
continued collection of assessments on imported porcine animals, pork, 
and pork products.

DATES: Comments must be received by April 22, 1996.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief; 
Marketing Programs Branch; Livestock and Seed Division; Agricultural 
Marketing Service (AMS), USDA, Room 2606-S; P.O. Box 96456; Washington, 
D.C. 20090-6456. Comments will be available for public inspection 
during regular business hours at the above office in Room 2606 South 
Building; 14th and Independence Avenue, SW.; Washington, D.C. 20090-
6456.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing 
Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION: The Department of Agriculture (Department) 
is issuing this proposed rule in conformance with Executive Order 
12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This proposal is not intended to have a 
retroactive effect. The Act states that the statute is intended to 
occupy the field of promotion and consumer education involving pork and 
pork products and of obtaining funds thereof from pork producers and 
that the regulation of such activity (other than a regulation or 
requirement relating to a matter of public health or the provision of 
State or local funds for such activity) that is in addition to or 
different from the Act may not be imposed by a State.

[[Page 11777]]

    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under Sec. 1625 of the Act, a 
person subject to an order may file a petition with the Secretary 
stating that such order, a provision of such order or an obligation 
imposed in connection with such order is not in accordance with the 
law; and requesting a modification of the order or an exemption from 
the order. Such person is afforded the opportunity for a hearing on the 
petition. After the hearing, the Secretary would rule on the petition. 
The Act provides that the district court of the United States in the 
district in which person resides or does business has jurisdiction to 
review the Secretary's determination, if a complaint is filed not later 
than 20 days after the date such person receives notice of such 
determination.
    This action also was reviewed under the Regulatory Flexibility Act 
(RFA) (5 United States Code (U.S.C.) 601 et seq.). The effect of the 
Order upon small entities was discussed in the September 5, 1986, issue 
of the Federal Register (51 FR 31898), and it was determined that the 
Order would not have a significant effect upon a substantial number of 
small entities. Many of the estimated 200 importers may be classified 
as small entities. This proposed rule would increase the amount of 
assessments on imported pork and pork products subject to assessment by 
two-hundredths of a cent per pound, or as expressed in cents per 
kilogram, four-hundredths of a cent per kilogram. Adjusting the 
assessments on imported pork and pork products would result in an 
estimated increase in assessments of $104,000 over a 12-month period. 
Accordingly, the Administrator of AMS has determined that this action 
would not have a significant economic impact on a substantial number of 
small entities.
    The Act (7 U.S.C. 4801-4819) approved December 23, 1985, authorized 
the establishment of a national pork promotion, research, and consumer 
information program. The program was funded by an initial assessment 
rate of 0.25 percent of the market value of all porcine animals 
marketed in the United States and an equivalent amount of assessment on 
imported porcine animals, pork, and pork products. However, that rate 
was increased to 0.35 percent in 1991 (56 FR 51635) and to 0.45 percent 
effective September 3, 1995 (60 FR 29963). The final Order establishing 
a pork promotion, research, and consumer information program was 
published in the September 5, 1986, issue of the Federal Register (51 
FR 31898; as corrected, at 51 FR 36383 and amended at 53 FR 1909, 53 FR 
30243, 56 FR 4, 56 FR 51635, and 60 FR 29963) and assessments began on 
November 1, 1986.
    The Order requires importers of porcine animals to pay U.S. Customs 
Service (USCS), upon importation, the assessment of 0.45 percent of the 
animal's declared value and importers of pork and pork products to pay 
USCS, upon importation, the assessment of 0.45 percent of the market 
value of the live porcine animals from which such pork and pork 
products were produced. This proposed rule would increase the 
assessments on all of the imported pork and pork products subject to 
assessment as published in the Federal Register as a final rule June 7, 
1995, and effective on September 3, 1995; (60 FR 29965). This increase 
is consistent with the increase in the annual average price of domestic 
barrows and gilts for calendar year 1995 as reported by USDA, AMS, 
Livestock and Grain Market News (LGMN) Branch. This increase in 
assessments would make the equivalent market value of the live porcine 
animal from which the imported pork and pork products were derived 
reflect the recent increase in the market value of domestic porcine 
animals, thereby promoting comparability between importer and domestic 
assessments. This proposed rule would not change the current assessment 
rate of 0.45 percent of the market value.
    The methodology for determining the per pound amounts for imported 
pork and pork products was described in the Supplementary Information 
accompanying the Order and published in the September 5, 1986, Federal 
Register at 51 FR 31901. The weight of imported pork and pork products 
is converted to a carcass weight equivalent by utilizing conversion 
factors which are published in the Department's Statistical Bulletin 
No. 697 ``Conversion Factors and Weights and Measures.'' These 
conversion factors take into account the removal of bone, weight lost 
in cooking or other processing, and the nonpork components of pork 
products. Secondly, the carcass weight equivalent is converted to a 
live animal equivalent weight by dividing the carcass weight equivalent 
by 70 percent, which is the average dressing percentage of porcine 
animals in the United States. Thirdly, the equivalent value of the live 
porcine animal is determined by multiplying the live animal equivalent 
weight by an annual average market price for barrows and gilts as 
reported by USDA, AMS, LGMN Branch. This average price is published on 
a yearly basis during the month of January in LGMN Branch's publication 
``Livestock, Meat, and Wool Weekly Summary and Statistics.'' Finally, 
the equivalent value is multiplied by the applicable assessment rate of 
0.45 percent due on imported pork and pork products. The end result is 
expressed in an amount per pound for each type of pork or pork product. 
To determine the amount per kilogram for pork and pork products subject 
to assessment under the Act and Order, the cent-per-pound assessments 
are multiplied by a metric conversion factor 2.2046 and carried to the 
sixth decimal.
    The formula in the preamble for the Order at 51 FR 31901 
contemplated that it would be necessary to recalculate the equivalent 
live animal value of imported pork and pork products to reflect changes 
in the annual average price of domestic barrows and gilts to maintain 
equity of assessments between domestic porcine animals and imported 
pork and pork products.
    The average annual market price increased from $39.57 in 1994 to 
$41.76 in 1995, an increase of about 6 percent. This increase would 
result in a corresponding increase in assessments for all HTS numbers 
listed in the table in Sec. 1230.110, 60 FR 29965; June 7, 1995, of an 
amount equal to two-hundredths of a cent per pound, or as expressed in 
cents per kilogram, four-hundredths of a cent per kilogram. Based on 
the most recent available Department of Commerce, Bureau of Census, 
data on the volume of imported pork and pork products available for the 
period January 1, 1995, through September 30, 1995, the proposed 
increase in assessment amounts would result in an estimated $104,000 
increase in assessments over a 12-month period.

List of Subjects in 7 CFR Part 1230

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreement, Meat and meat products, Pork and pork 
products.

    For the reasons set forth in the preamble, it is proposed that 7 
CFR Part 1230 be amended as follows:

PART 1230-PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION

    1. The authority citation for 7 CFR Part 1230 continues to read as 
follows:

    Authority: 7 U.S.C. 4801-4819.

Subpart B--[Amended]

    2. In Subpart B--Rules and Regulations, Sec. 1230.110 is revised to 
read as follows:

[[Page 11778]]



Sec. 1230.110  Assessments on imported pork and pork products.

    (a) The following HTS categories of imported live porcine animals 
are subject to assessment at the rate specified.

------------------------------------------------------------------------
           Live porcine animals                      Assessment         
------------------------------------------------------------------------
0103.10.0000..............................  0.45 percent Customs Entered
                                             Value.                     
0103.91.0000..............................  0.45 percent Customs Entered
                                             Value.                     
0103.92.0000..............................  0.45 percent Customs Entered
                                             Value.                     
------------------------------------------------------------------------

    (b) The following HTS categories of imported pork and pork products 
are subject to assessment at the rates specified.

------------------------------------------------------------------------
                                                        Assessment      
             Pork and pork products              -----------------------
                                                   cents/lb    cents/kg 
------------------------------------------------------------------------
0203.11.0000....................................        .27      .595242
0203.12.1010....................................        .27      .595242
0203.12.1020....................................        .27      .595242
0203.12.9010....................................        .27      .595242
0203.12.9020....................................        .27      .595242
0203.19.2010....................................        .31      .683426
0203.19.2090....................................        .31      .683426
0203.19.4010....................................        .27      .595242
0203.19.4090....................................        .27      .595242
0203.21.0000....................................        .27      .595242
0203.22.1000....................................        .27      .595242
0203.22.9000....................................        .27      .595242
0203.29.2000....................................        .31      .683426
0203.29.4000....................................        .27      .595242
0206.30.0000....................................        .27      .595242
0206.41.0000....................................        .27      .595242
0206.49.0000....................................        .27      .595242
0210.11.0010....................................        .27      .595242
0210.11.0020....................................        .27      .595242
0210.12.0020....................................        .27      .595242
0210.12.0040....................................        .27      .595242
0210.19.0010....................................        .31      .683426
0210.19.0090....................................        .31      .683426
1601.00.2010....................................        .37      .815702
1601.00.2090....................................        .37      .815702
1602.41.2020....................................        .41      .903886
1602.41.2040....................................        .41      .903886
1602.41.9000....................................        .27      .595242
1602.42.2020....................................        .41      .903886
1602.42.2040....................................        .41      .903886
1602.42.4000....................................        .27      .595242
1602.49.2000....................................        .37      .815702
1602.49.4000....................................        .31      .683426
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    Dated: March 18, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-6983 Filed 3-21-96; 8:45 am]
BILLING CODE 3410-02-P