[Federal Register Volume 61, Number 89 (Tuesday, May 7, 1996)]
[Rules and Regulations]
[Pages 20421-20437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11211]



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  Federal Register / Vol. 61, No. 89 / Tuesday, May 7, 1996 / Rules and 
Regulations  

[[Page 20421]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 130

[Docket No. 92-174-2]
RIN 0579-AA67


Import/Export User Fees

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: We are amending user fees for certain import- and export-
related services we provide for live animals and birds, animal 
products, organisms and vectors, and germ plasm and veterinary 
diagnostic services. We are also establishing user fees for certain 
import- and export-related services we provide for live animals and 
birds, and animal products and byproducts. We are also making several 
miscellaneous changes, such as amending the definitions of certain 
words. These actions are necessary to help ensure that we recover our 
costs and to simplify and clarify the application of user fees for the 
public. These actions are taken in accordance with the Food, 
Agriculture, Conservation, and Trade Act of 1990, as amended, which 
gives us the authority to set and collect these user fees.

EFFECTIVE DATE: June 6, 1996.

FOR FURTHER INFORMATION CONTACT: For information concerning services 
provided for live animals and birds, and germ plasm, contact Dr. Gary 
S. Colgrove, Chief Staff Veterinarian, National Center for Import and 
Export, VS, APHIS, 4700 River Road Unit 38, Riverdale, MD 20737-1231; 
(301) 734-3294.
    For information concerning services provided for animal products 
and byproducts, organisms and vectors, contact Dr. Kathleen Akin, 
Senior Staff Veterinarian, Import/Export Products, VS, APHIS, 4700 
River Road Unit 40, Riverdale, MD 20737-1231; (301) 734-7830.
    For information concerning services provided for veterinary 
diagnostics, contact Dr. James E. Pearson, Acting Director, National 
Veterinary Services Laboratories, P.O. Box 844, Ames, IA 50010; (515) 
239-8266.
    For information concerning fees, contact Ms. Barbara Thompson, 
Chief, Financial Systems and Services Branch, Budget and Accounting 
Division, APHIS, 4700 River Road Unit 54, Riverdale, MD 20737-1232; 
(301) 734-5901.

SUPPLEMENTARY INFORMATION:

Background

    The Food, Agriculture, Conservation and Trade Act of 1990, as 
amended (referred to below as the Farm Bill), authorizes the Secretary 
of Agriculture, among other things, to prescribe and collect fees to 
reimburse the Secretary for the cost of carrying out the provisions of 
the Federal animal quarantine laws that relate to the importation, 
entry, and exportation of animals, articles, or means of conveyance 
(section 2509(c)(1) of the Farm Bill). The Secretary of Agriculture is 
also authorized, under section 2509(c)(2) of the Farm Bill, to 
prescribe and collect fees to recover the costs of carrying out certain 
veterinary diagnostics services.
    The user fee regulations in 9 CFR part 130 (referred to below as 
the regulations) prescribe user fees that the Animal and Plant Health 
Inspection Service (APHIS) of the U.S. Department of Agriculture (USDA) 
collects for various services that APHIS provides. The regulations 
currently include user fees for: (1) Providing quarantine, importation, 
and entry services within the United States for imported animals; (2) 
conducting certain veterinary diagnostics services; (3) endorsing 
export health certificates for animals; (4) providing certain 
inspection and supervision services within the United States for 
animals intended for export; and (5) conducting certain veterinary 
inspections outside the United States.
    Our user fees are calculated to recover the full cost of providing 
the service for which the user fee is charged. The cost of providing a 
service includes direct labor costs and a pro rata share of 
administrative support, agency overhead, and Departmental charges.
    On May 26, 1995, we published in the Federal Register (60 FR 27913-
27924, Docket No. 92-174-1) a proposal to amend the regulations by 
revising and adding new hourly, minimum, and flat rate user fees in the 
regulations. We proposed to increase most of the hourly, minimum, and 
flat rate user fees for import-related services in Secs. 130.2, 130.3, 
130.5, 130.6, 130.7, and 130.9 of the regulations and for export-
related services in Secs. 130.9 and 130.21 of the regulations. For 
services performed on overtime, we proposed to add new premium hourly 
rate user fees, to replace the practice of charging two separate hourly 
rates (see Secs. 130.5, 130.9 and 130.21 of the regulations). We 
proposed to add a new minimum user fee in Sec. 130.3 of the 
regulations. We proposed to add a new Sec. 130.10 for hourly, minimum, 
and flat rate user fees for pet birds. We proposed to add new 
requirements for special mail handling to be paid for by the user in 
Secs. 130.14 through 130.18 of the regulations. We proposed to add a 
new fee for nonendorsed export health certificates in Sec. 130.20 of 
the regulations. Additionally, we proposed to accept credit cards in 
certain locations as an optional payment method. We also proposed to 
make several other changes to simplify and clarify the regulations.
    We solicited comments concerning our proposal for 60 days ending 
July 25, 1995. We received 60 comments by that date. They were from 
veterinarians, representatives of agricultural industries, exporters, 
producers, a State department of livestock, a Member of Congress, and 
other interested parties.

Summary of Changes Made in Response to Comments

    We are making the following changes in response to the comments we 
received. We are combining the services covered under Sec. 130.4 with 
the services covered under Sec. 130.5. Section 130.4 covers inspection 
services at privately operated permanent import-quarantine facilities. 
Under Sec. 130.4, a flat rate user fee is charged for each animal 
quarantined at the facility. Section 130.5 covers inspection services 
at privately operated temporary import-quarantine facilities. Under 
Sec. 130.5, an hourly user fee is charged for animals quarantined at 
the facility. We are adding quarter-hour

[[Page 20422]]

and minimum user fee rates to premium user fees added in Secs. 130.5, 
130.9, and 130.21. We are clarifying Sec. 130.20(a) and 
Sec. 130.20(b)(1) to specify that the user fees listed in 
Sec. 130.20(b)(1) for endorsing export health certificates which 
require tests or vaccinations are charged for endorsements when tests 
or vaccinations are required. We are changing ``APHIS veterinarian'' to 
``designated APHIS employee'' and changing ``requested'' to ``requested 
and reviewed'' in Sec. 130.20(d) of this final rule. In addition, we 
are revising the text of footnote 9 to reflect the availability of 
lists for APHIS offices that accept cash or credit cards. Footnotes to 
text or tables in Secs. 130.7, 130.8, 130.10, 130.14, and 130.15 have 
been revised to add clarity. The comments and responses are discussed 
below by topic.

General Comments

    One commenter opposed the entire proposed rule. All of the other 
commenters opposed some portion of the proposed rule. Twelve commenters 
included the following positive comments concerning user fees and the 
services APHIS provides. Several commenters expressed an understanding 
of our need to increase user fees or supported user fees which cover 
costs. Several expressed appreciation for the services APHIS provides, 
such as APHIS' role in disease control and maintenance of a healthy and 
robust livestock industry in the United States, helping export business 
in the United States, and negotiating import- and export-related issues 
with foreign countries. One commenter supported modest increases in 
certain user fees as proposed.

1. Taxes and Budget Deficit

    Nine commenters expressed concerns about taxes and the budget 
deficit. Some commenters expressed more than one concern; specific 
concerns follow.
    Two commenters stated that APHIS was assessing taxes of its own 
volition. Six commenters stated that the APHIS user fee is a tax, not a 
fee.
    A tax is money paid to support government operations that benefit 
the general public. A user fee is money collected for a specific 
service provided to a readily identifiable recipient. The 1990 Farm 
Bill authorizes USDA to prescribe and collect user fees to reimburse 
the cost of carrying out certain import- and export-related services 
for animals, animal products, and veterinary diagnostics. The Farm Bill 
further states that ``Any person for whom an activity related to the 
importation, entry, or exportation of an animal, article, or means of 
conveyance or relating to veterinary diagnostics, is performed pursuant 
to the section, shall be liable for payment of fees assessed.'' 
Generally speaking, no one is required to conduct any business or 
endeavor which is regulated by APHIS. However, anyone who does so must 
comply with APHIS requirements. In this manner, all users ask for 
service from APHIS. The APHIS user fees herein are designed to recover 
and fund the cost of providing specific services. As such, the APHIS 
user fee is a fee for specific services provided to a certain portion 
of the public and, therefore, is not a tax.
    Three commenters stated that our services are already paid for by 
taxes, and therefore, we should not charge fees for them. One commenter 
suggested that we should fund increases in the costs through other 
methods.
    After the passage of the 1990 Farm Bill, Congress reduced APHIS' 
appropriations (i.e., tax revenue) by the estimated costs of providing 
these import- and export-related services. Congress authorized APHIS to 
recover all costs associated with these services by establishing and 
charging user fees. Consequently, any increases in our costs must be 
recovered by increasing the user fees we charge. Otherwise, we would 
have to reduce or discontinue the service or use funds appropriated for 
other purposes, to the detriment of the program from which the funds 
were reallocated.
    One commenter stated that APHIS user fees should not be used for 
general Federal budget deficit reduction. One commenter questioned what 
will be done with revenues.
    The user fees are not being used for general Federal budget deficit 
reduction in the sense that the revenue does not fund or offset general 
government operations. The user fees collected pay for the actual user 
fee services provided and will allow APHIS to continue providing 
import- and export-related and veterinary diagnostic services. The user 
fees our Agency collects for these services are deposited into user fee 
accounts, and the salaries of veterinarians, animal health technicians, 
and other APHIS personnel who perform these services are paid from this 
account. An employee who spends a portion of his work time on user fee 
activities and a portion on other activities is paid the appropriate 
percentage of his salary with user fee revenue. In addition, a pro rata 
share of administrative support, agency overhead, and Departmental 
charges is paid from this account.
    Two commenters questioned user fees as they relate to other APHIS 
services. One commenter questioned charging user fees for certain 
services when other services are provided at no cost. The commenter 
referenced free rabies vaccination clinics on reservations.
    The Farm Bill identified specific program areas for the 
implementation of user fees, generally related to the importation and 
exportation of animals and animal products. APHIS does not have the 
authority under the Farm Bill to charge fees for other services, such 
as rabies vaccinations, which we provide on reservations to protect 
public health.

2. Fee Calculations

    We received several comments related to how we calculated our user 
fees. One commenter was concerned about the methods used to calculate 
the fees and the possibility that the user fees are underwriting other 
APHIS services. Several comments questioned whether we should include 
certain cost factors, for example, agency overhead charges, in 
calculating user fees. Other comments stated that we would recover more 
money from our proposed user fees than it costs to provide APHIS 
services.
    As described in the proposal, the user fees were calculated to 
recover the full cost of providing the service for which the fee is 
charged. ``Full cost'' includes not only the direct labor of the 
veterinarian, animal health technician, or other APHIS personnel 
providing the service, but a pro rata share of administrative support, 
agency overhead, and Departmental charges. These additional indirect 
and overhead costs are included as directed in the Office of Management 
and Budget (OMB) Circular A-25, User Charges, and in accordance with 
generally accepted cost accounting principles.
    Had Congress intended for APHIS to recover only direct labor costs, 
the authorizing language would have specified that and Congress would 
have continued to give APHIS appropriations to fully fund all indirect 
and overhead costs associated with import- and export-related services. 
The comments that we may be underwriting other services and that we 
will recover more money than it costs to provide the service would only 
be true if the Farm Bill authorized us to only recover direct costs. 
However, because we are authorized to fully recover all costs, our fees 
include all appropriate direct, indirect, and overhead costs.

3. Trade Concerns

    Twenty-eight commenters expressed concern about the increases in 
user fees and the possible subsequent decrease in exports.

[[Page 20423]]

    We realize that payment of the proposed user fees will increase the 
up-front cost of doing business for importers and exporters. However, 
before this time, users have been subsidized by the taxpayers in 
general, in that those who receive services from APHIS have not been 
charged the full cost for services. As explained above, appropriations 
from taxes are not available to fund these services. To continue 
providing import- and export-related and veterinary diagnostic 
services, APHIS must charge user fees which will recover the costs of 
providing services. We attempt to minimize the cost of our services to 
keep APHIS user fees at the lowest possible level. We do not anticipate 
that exports will decline significantly as a result of these increases 
in user fees.
    Many commenters stated that our proposed user fees would make it 
difficult or impossible for U.S. products to compete in the 
international marketplace. Examples of the issues raised included the 
following: U.S. products will be less competitive, the increased user 
fees will be a deterrent to international trade, exportation of animals 
will become unprofitable, and there will be a decrease in export 
activity. Many of these comments mentioned trade related issues with 
Canada.
    Although some countries do not currently charge for import- and 
export-related services, user fees for these services are being adopted 
by more and more countries. In fact, as of May 3, 1995, Canada charges 
user fees for certain import- and export-related animal health services 
(see May 3, 1995, Canada Gazette Part II, Vol. 129, No. 9, SOR/DORS/95-
198). Therefore, we do not believe that U.S. exporters are at a 
competitive disadvantage compared with exporters in other countries.

4. Other Countries' Requirements

    Two commenters raised the following concerns related to the 
requirements other countries impose on U.S. exports. One commenter 
questioned why it costs significantly more to export animals to Canada 
as opposed to exporting animals to the European Union.
    APHIS costs for export-related services depend on the importing 
countries' requirements. Canada has significantly different paperwork 
requirements than most other countries in the world. Often, more work 
is required on the part of APHIS employees to ensure the animals being 
exported have met all of Canada's paperwork requirements. In those 
instances, the user fees for animals being exported to Canada may be 
higher than for animals exported to the rest of the world.
    One commenter suggested that APHIS should seek elimination of 
import- and export-related testing procedures which are not science- or 
risk-based and which may add unnecessary costs to import- and export-
related procedures.
    According to the World Trade Organization (WTO), as established by 
the Uruguay Round of the General Agreement on Tariffs and Trade, and 
the North American Free Trade Agreement (NAFTA), effective January 
1995, import- and export-related requirements must be science- and 
risk-based. Along with the United States, many countries are revising 
their requirements to comply with WTO and NAFTA. In addition, APHIS 
continually negotiates with other countries to achieve less onerous 
import requirements for U.S. exporters. Since our costs vary depending 
on the requirements imposed by the importing country, when other 
countries lessen their import requirements, our user fees may decrease. 
For example, if a country were to no longer require tests or were to 
allow more animals on a single export health certificate, the average 
amount of time it would take to provide endorsement services would 
decrease and the user fees charged could decrease.

5. Improve Services to Lower Costs

    Six commenters suggested that we lower costs and simplify paperwork 
requirements. Five commenters suggested that we review and improve 
services. Specific suggestions included privatizing services, 
automating services, streamlining tests, increasing field staff, and 
basing user fees on speed of service.
    APHIS continually strives to improve efficiency in operations. 
APHIS seeks to eliminate duplication of services and to utilize 
employees better without jeopardizing the quality of our work in 
carrying out the provisions of the Federal animal quarantine laws. Most 
paperwork services and the related costs associated with imports and 
exports are required by the importing country and we cannot do anything 
directly to change those requirements. However, as explained above, we 
do try to negotiate with other countries to make requirements less 
onerous. If we propose to eliminate a service for which we have a user 
fee, then we will also propose to eliminate the user fee. Likewise, if 
in the future we propose to add a service, then we may also propose to 
add a user fee for the service. If we propose in the future to 
substantially change a service for which we charge a user fee, then we 
will recalculate the user fee for the service to reflect those changes.

6. Economic Analysis

    One commenter stated that we should have included a small business 
impact statement in the proposed rule.
    A regulatory flexibility analysis, which includes a small business 
impact statement, was included in the proposed regulations at 60 FR 
27919-27920.
    One commenter stated that the costs used in our economic analysis 
did not provide an accurate picture of how importers assess costs 
related to importing animals. The commenter specified that these costs 
are generally broken down into the following three areas: the purchase 
price of the animal, freight charges, and importing or exporting 
expenses.
    The costs used in the economic analysis performed for the 
regulatory flexibility analysis for the proposal included all of these 
expenses. As stated in the proposal, the figures shown in the analysis 
included purchase and import costs, including freight. Therefore, we 
are making no changes as a result of this comment.

7. Effective Date

    Three commenters suggested that we delay the effective date of the 
final rule.
    We understand the commenters' desire to make business plans and not 
have business affected by increases in our user fees. Our proposal 
signaled our intention to revise the import- and export-related service 
user fees. The proposal was published in the Federal Register on May 
25, 1995, and open for public comments for 60 days. This rule will not 
take effect until 30 days after the date it is published in the Federal 
Register. This delay should give the commenters and others adequate 
time to prepare.

8. Independent Review

    One commenter suggested that a review team should be established to 
conduct an independent user fee review.
    APHIS monitors user fees regularly and reviews user fees at least 
annually to ensure that they continue to correspond with our costs. In 
addition, outside reviews are performed by the Office of the Inspector 
General and the General Accounting Office (GAO).

9. Privately Owned Import Quarantine Facilities (Secs. 130.4 and 130.5)

    One commenter pointed out that inspection services for animals 
provided for privately owned permanent import quarantine facilities 
under Sec. 130.4 are

[[Page 20424]]

similar to those provided for privately owned temporary import 
quarantine facilities under Sec. 130.5, and stated that having 
different user fees for similar services is unfair. The commenter 
stated that depending on the number of animals being imported, the user 
fees could be less for the services provided under Sec. 130.5 during 
the regular tour of duty and on overtime than the user fee for the same 
services if provided under Sec. 130.4. The commenter asked if APHIS is 
recovering all the import-related costs from the hourly user fee 
charged under Sec. 130.5; and if so, why is there such a difference 
between that hourly user fee and the per head flat rate user fee plus 
reimbursable overtime proposed under Sec. 130.4 which can be higher.
    The commenter is correct that depending on the number of animals 
being imported, if service must be provided on overtime, then the per 
head user fees charged under Sec. 130.4 can be higher than the hourly 
user fees charged under Sec. 130.5. We have evaluated this situation 
and have determined that based on the similar nature of the services 
being provided, animals that are imported into a permanent facility 
should be charged at the same rate as those imported into a temporary 
facility. As suggested by the commenter, we are making the fees the 
same. We are making this change by eliminating Sec. 130.4 and including 
privately owned permanent import quarantine facilities under 
Sec. 130.5.

10. Overtime and Premium User Fees (Secs. 130.5, 130.9, and 130.21)

    One commenter stated that charging both reimbursable overtime and 
the flat rate user fee under Sec. 130.4 is double charging for the time 
spent by USDA personnel.
    As explained above, we are eliminating Sec. 130.4 and these 
services will now be covered under Sec. 130.5. Under Sec. 130.5, during 
overtime, only the premium rate user fee will be charged.
    One commenter asked if there are any quarter- or half-hour premium 
user fee rates for the premium hourly user fee. We are adding quarter-
hour and minimum rates for each of the new premium user fees. Not 
listing such rates was an oversight in the proposal. For periods of 
less than an hour, the quarter-hour premium rate will be multiplied by 
2 or 3 for half and three quarters of an hour, respectively. Therefore, 
we are not adding half-hour premium rates. The premium user fee will 
become the new hourly overtime charge for import- and export-related 
services; it will apply to services provided under Secs. 130.5, 130.9, 
and 130.21 and replace our previous policy of charging a user fee at 
the hourly rate (per 9 CFR part 130) plus reimbursable overtime at the 
hourly rate (per 9 CFR part 97).
    One commenter protested that the proposed premium user fee is an 
increase over the current overtime rate.
    While the hourly rate for the premium user fee is higher than the 
hourly reimbursable overtime rate, application of the premium user fee 
will decrease the overall user fee charges because the premium user fee 
will be charged in lieu of both the hourly user fee and reimbursable 
overtime. Therefore, we are making no changes based on this comment.
    One commenter questioned how the new premium user fee will apply. 
Another commenter, stating that work for which the user fees are 
charged usually takes 15 minutes, protested the minimum time charged 
for the work during overtime.
    For clarification, in Secs. 130.5, 130.9, and 130.21 we will add 
that the procedures for applying the new premium user fee rates will 
follow the procedures for applying reimbursable overtime as prescribed 
under 9 CFR part 97 with regard, for example, to call-backs, 
continuation, commuted travel time, and maximum travel times. For 
example, when 9 CFR part 97 prescribes a 2 hour minimum, that 2 hour 
minimum will be charged at the premium user fee rate. This is 
consistent with United States Code, Title 5 Government Organizations 
and Employees, Subchapter V Premium Pay, section 5542 (referenced in 
the authority citation for this final rule), which states that 
``unscheduled overtime work performed by an employee on a day when work 
was not scheduled for him, or for which he is required to return to his 
place of employment, is deemed at least 2 hours in duration.'' Because 
employees are entitled to a 2 hour minimum of pay in these 
circumstances, we must charge a minimum of 2 hours in order to recover 
the cost of providing that service on overtime.

11. Import Fee (Sec. 130.7)

    One commenter stated that the user fee charged in Sec. 130.7 would 
not fully recover costs if an APHIS veterinarian had to travel to a 
port to perform the inspections. The commenter suggested that we change 
this flat rate user fee to an hourly user fee to fully recover costs.
    The commenter is correct that, as calculated, the user fees may not 
cover the costs of providing import and entry services at any given air 
or ocean port. These user fees were calculated based on the average 
time required for an APHIS employee to provide import or entry services 
at all ports. The occasional inspections which require an APHIS 
veterinarian to travel to a limited port, as designated in 9 CFR part 
92, were one of the many factors considered in calculating the user 
fees. To reflect past experience, the calculation for these user fees 
included 2 hours of travel time for 1 percent of the estimated 
importations. We are making no changes based on this comment. However, 
we will consider this for future revisions to the user fees. All user 
fee changes will be published in the Federal Register for public 
comment.

12. Germ Plasm User Fees (Sec. 130.8)

    One commenter questioned the statement in the proposal that empty 
germ plasm containers that have been exported are presented for 
inspection when returned to the United States. The commenter asked if 
there was a protocol in place to ensure that these containers are 
presented for inspection.
    APHIS employees review ship manifests to determine which items need 
to be held for inspection. The empty germ plasm containers are listed 
on the ship manifests, held, and inspected.
    One commenter suggested charging an hourly user fee for import germ 
plasm inspections because the time spent performing the inspections at 
the port is usually 3 hours; this time would not be covered by the flat 
rate user fee.
    The calculation for the user fee for imported germ plasm considered 
inspection at all ports. These user fees were calculated on the average 
direct labor hours required for the inspections nationwide. We surveyed 
APHIS employees performing the inspections and visited ports to 
determine the amount of direct labor required for the inspections. 
Therefore, we are making no changes based on this comment. However, we 
will consider this for future revisions. All user fee changes will be 
published in the Federal Register for public comment.
    One commenter suggested we charge the same amount for endorsing 
export health certificates for each group of five embryo donor pairs.
    We have determined that there is a marginal cost decrease to 
endorse additional groups of donor pairs on the same export health 
certificate. User fees are calculated to recover only the cost of 
services. Therefore, the proposed tiered user fee rate, with a lower 
fee for additional groups of donor pairs on the same certificate, is 
appropriate. We are making no changes based on this comment.

[[Page 20425]]

13. User Fees for Endorsing Export Health Certificates (Sec. 130.20)

    The May 26, 1995, proposed rule also proposed to raise user fees 
for endorsing export health certificates for the exportation of animals 
and animal products. APHIS employees endorse export health certificates 
in accordance with the regulations in 9 CFR part 91. An APHIS 
endorsement certifies that animals and animal products being exported 
from the United States are free from communicable diseases.
    Most of the comments we received addressed these user fees. The 
commenters were opposed to any fee increases. The comments raised the 
following issues.
User Fee Increases
    According to most of the commenters, proposed user fees for 
endorsement of export health certificates are too high, and the 
increases are not justified.
    We understand that some of the proposed user fees for endorsement 
of export health certificates are significantly higher than the 
previous user fees. The reason is that the previous user fees were 
based on estimates and were set too low. The original user fees for 
export health certificates implemented in January 1992 were calculated 
using the best information available at that time. Since that time, 
APHIS has separately identified, through our accounting system, costs 
for services for which user fees are authorized. Our accounting data 
and a deficit of over $1 million for each fiscal year from 1992 through 
1994 for export-related user fee services shows that the previous user 
fees have not been recovering our costs. Our proposed user fees were 
calculated based on more accurate information, including all of the 
costs of providing our services, than was available when we calculated 
our previous user fees.
    In addition to our accounting data, we surveyed APHIS locations 
nationwide where export health certificates are endorsed to identify 
the amount of direct labor time APHIS employees spend providing these 
services. Direct labor activities may include the following: Telephone 
time for providing information about the export health certification 
process, mailing information to customers, protocol research, review of 
paperwork such as health certificates, verification of laboratory test 
results, confirmation that the importing country's requirements have 
been met, paperwork completeness review, certification statements 
review, endorsement/signing, placing an official seal on documents if 
needed, and completing APHIS paperwork related to the endorsement. Many 
of the activities listed above must be performed to make it possible 
for APHIS employees to endorse the export health certificates. Some 
endorsements are for exportations which are routine and require 
relatively little time. Other endorsements require more work and 
therefore take more time. Further, endorsements of export health 
certificates of the same certificate category take different amounts of 
time because import requirements differ for each importing country. On 
average, when no tests or vaccinations are required, direct labor time 
for endorsing export health certificates varies, by category, between 
14 and 22 minutes, for example, endorsements for poultry take 18 
minutes. On average, when verification of tests or vaccinations is 
required, direct labor time for endorsing export health certificates 
varies, based on the number of tests, between 45 and 65 minutes for the 
first animal on the certificate.
    After estimating the average direct labor time involved in 
endorsing export health certificates, direct labor costs were 
calculated. To calculate the direct labor costs, we used the actual 
salary of each individual that provides the services and weighted these 
costs according to the number of export health certificates endorsed at 
each location to arrive at the average direct labor rate per hour, 
$34.06. This includes salary and benefits.
    The average number of minutes per endorsement is multiplied by the 
average direct labor rate to arrive at the total direct labor cost in 
each certificate category.
    User fee calculations were based on the direct labor costs and a 
pro rata share of support costs, agency overhead, and Departmental 
charges. Costs were assigned directly to a service only when the cost 
was directly related to providing that service. Where an expense was 
attributable to several or all categories of service, it was pro-rated 
among the categories based on historic direct labor staff hours. This 
calculation provided the raw fee.
    As explained in the proposal, we rounded the raw fees up to the 
nearest quarter. We rounded them off to simplify collection and 
accounting. We rounded our user fees up, rather than down, because if 
we were to round down, even if only by pennies, the user fees would not 
fully recover our costs. If there is a shortfall for a service 
category, we cannot recover it by charging a higher user fee for 
another service category.
    We compared the resulting user fees and the revenue they generate 
to the costs of these activities for reasonableness. Adjustments were 
made for anticipated changes in volume, based on past changes and other 
factors such as current market and economic conditions.
    We put as much of our supporting data in the proposed rulemaking as 
possible. However, it was not feasible to include all the materials 
used to develop the user fees. Therefore, as stated in the proposed 
rulemaking, we made it available for inspection at our headquarters in 
Riverdale, MD.
    Many of the comments related to the proposed increases in poultry 
health certificates. Therefore, we have included an example of the 
calculation for the user fee for endorsing export health certificates 
for poultry. The average amount of time it takes to endorse an export 
health certificate for poultry is 18 minutes, which can include any of 
the direct labor activities listed above. Using the average direct 
labor rate per hour of $34.06, the direct labor cost for 18 minutes is 
$10.08. As described earlier, the following costs are the pro rata 
share for endorsing export health certificates. Administrative support 
costs are added at about $0.69 for each $1 of direct labor incurred, 
adding $6.89. Agency overhead and departmental charges are added at 
$2.74 and $1.08, respectively. The total cost is $20.79, which is 
rounded up to the nearest quarter to $21.00. When factoring in all of 
the costs involved in endorsing an export health certificate, the fees 
are reasonable. When comparing the proposed user fees to the previous 
user fees, which were too low, they appear high. However, we could not 
continue to provide these services if we did not increase the user fees 
to fully recover our costs. Therefore, we are making no changes based 
on these comments.
Objections to User Fees for Endorsing Export Health Certificates
    Many commenters objected in general terms to user fees for 
endorsing export health certificates.
    Export health certificates are required by the country importing 
the animal or animal product; they are not required by APHIS, USDA, or 
any other agency or organization within the Federal Government. 
Therefore, we are unable to eliminate services and costs associated 
with the endorsement of export health certificates. However, we do 
attempt, whenever possible, to negotiate with foreign governments to 
eliminate export health certificate requirements or make them less 
onerous to U.S. exporters. We are continually negotiating with other 
countries to

[[Page 20426]]

eliminate or minimize requirements. The success of our negotiations can 
be seen in the following changes in other country's requirements. 
Canadian test requirements for blue tongue tests on live cattle have 
been liberalized. Chile has dropped test requirements for contagious 
caprine pleuropneumonia tests on U.S. goats. Argentina has dropped test 
requirements for contagious equine metritis test requirements for 
horses. In addition, there are ongoing negotiations with Mexico to 
eliminate their requirement that breeding swine be tested for porcine 
respiratory and reproductive syndrome, and with Russia to sustain 
markets for U.S. fresh and frozen poultry meat. We will continue to 
work for improvements in these and other areas.
Small Business
    Many commenters maintained the proposed APHIS user fees would be 
detrimental to small businesses in general, or to specific industries, 
such as manufacturers of medical diagnostic reagents. Other commenters 
stated that paying the user fees would be a hardship, increase their 
cost of doing business, or have other detrimental effects. Some 
commenters proposed that we exempt certain industries or classes of 
users from the proposed user fees or charge them reduced fees. Among 
those mentioned were members of the poultry industry involved in the 
National Poultry Improvement Plan.
    We realize that the proposed user fees may increase the up-front 
cost of doing business. APHIS sympathizes with these commenters and has 
attempted to minimize the cost of services to keep the user fees at the 
lowest possible level for all users.
    However, when Congress authorized APHIS to prescribe and collect 
user fees to recover the costs of import- and export-related services 
for animals, birds, and animal products, it specifically reduced APHIS' 
appropriations by the estimated amount of providing such services. 
Currently, APHIS is not appropriated funds to cover the cost of 
providing these services. Therefore, APHIS cannot exempt certain 
classes of users, such as small businesses, from the user fees, and 
cannot charge user fees which recover less than the full cost of 
providing the service without using funds appropriated for other 
purposes. We are therefore not making any changes based on these 
comments.
Services Provided
    Nine commenters addressed the services for which APHIS charges user 
fees to endorse export health certificates. Several commenters raised 
more than one issue; specific issues follow.
    Five commenters took exception to the perceived duplication of 
services provided by local veterinarians and APHIS veterinarians.
    Even though local veterinarians may be federally accredited, 
importing countries require an APHIS veterinarian to endorse export 
health certificates.
    Several commenters objected to user fees for services required by 
the regulations, as opposed to voluntary services.
    Our authority to collect user fees does not distinguish between 
mandatory and voluntary services. Further, we do not agree with the 
commenters' basic proposition that users do not ask for APHIS services 
if they are complying with a regulatory requirement. As stated in 
Sec. 130.20 of the regulations, ``An export certificate may need to be 
endorsed for an animal being exported from the United States if the 
country to which the animal is being shipped requires one. APHIS 
endorses export health certificates as a service.'' No one is required 
to conduct any business or endeavor which is regulated by APHIS. 
However, anyone who does so must comply with APHIS requirements. In 
this manner, all users ask for service from APHIS.
    APHIS services are provided to enhance U.S. agriculture. APHIS 
services concerning exportation of animals and animal products are 
designed either to provide services to exporters which they need in 
order to meet requirements of the importing country, or to help ensure 
that no infected animals or animal products are exported from the 
United States. This service helps protect the individual exporter and 
helps foreign markets for American animals and animal products.
    Many commenters asserted that most of the work is performed by the 
exporters and local veterinarians, and that APHIS only signs the forms.
    Even though in some instances it may appear to the person obtaining 
the endorsement for the export health certificate that the only step 
APHIS does is sign the certificates, there are many other steps that 
may be involved. As explained earlier in response to another comment, 
direct labor activities may include the following: Telephone time for 
providing information about the export health certification process, 
mailing information to customers, protocol research, review of 
paperwork such as health certificates, verification of laboratory test 
results, confirmation that the importing country's requirements have 
been met, paperwork completeness review, certification statements 
review, endorsement/signing, placing an official seal on documents if 
needed, and completing APHIS paperwork related to the endorsement. Many 
of the activities listed above must be performed to make it possible 
for APHIS employees to endorse the export health certificates.
Multiple Versus Single Export Health Certificates
    Three commenters were concerned about whether we would charge for 
multiple or single export health certificates in situations where 
multiple export health certificates are required for a single 
exportation or where multiple similar export health certificates are 
required in a limited time. Examples included egg shipments to one 
corporate agent who then redistributes the eggs to various customers; 
containers of export product which require up to five copies of the 
same export health certificate, each requiring an original signature; 
and hundreds of export health certificates per month where the 
commenter suggested that economies of scale and time management could 
be realized if numerous certificates are signed at the same time.
    Different countries have different requirements as to the number 
and kinds of tests that are required and the number of animals, birds, 
or animal products which can be covered by one export health 
certificate. As a result, the amount of time required to endorse export 
health certificates varies. Since our goal is to fully recover our 
costs, we charge the user fee that equals the work required for an 
export health certificate going from one consignee to one consignor. If 
the APHIS employee responsible for endorsing the export health 
certificate determines that the animals, birds, or animal products are 
part of one consignment, originating from one farm or ranch and 
destined for one location, the user is charged as though all of the 
animals, birds, or animal products are on one export health 
certificate. If this is not the case, more work may be required for the 
endorsement, and a separate fee is assessed for each endorsement. For 
occasions where shipments being exported from the same consignor to the 
same consignee are presented a day apart, a separate fee is charged for 
each endorsement.
Nonendorsed Export Health Certificates
    Seven commenters opposed the new user fee in Sec. 130.20(d) for 
nonendorsed export health certificates. There

[[Page 20427]]

appeared to be confusion about the reasons for charging the user fee 
for nonendorsed export health certificates and when the user fee would 
be charged.
    To clarify our intentions, we are not charging $16.50 for blank 
export health certificates. Rather, the user fee will be assessed after 
the APHIS veterinarian has received the export health certificate for 
endorsement, has begun to review it, and subsequently finds a problem 
which prevents him or her from endorsing the export health certificate 
as presented. At this point the APHIS veterinarian will return the 
nonendorsed export health certificate to the exporter for corrective 
action. Since work has been performed, we must charge the user fee to 
recover our costs for the services. To clarify this, we are revising 
the wording proposed in Sec. 130.20(d) to specify that the charge 
applies to export health certificates presented for endorsement which 
were reviewed, but not endorsed.
Nonslaughter Horses to Canada
    One commenter raised concerns about the movement of race horses to 
Canada. The commenter maintained that export health certificates and 
inspections should not be required for race horses, and stated that 
Canadian race tracks are dropping the Coggins test requirement.
    As explained earlier, we are continually negotiating with Canada 
and other countries to eliminate or minimize their import requirements. 
The movement of race horses is one of the items under discussion. If 
Canadian requirements change, or if a service is no longer required 
because Canada has changed its import requirements, any corresponding 
fee changes will be published in the Federal Register for public 
comment.
Slaughter Animals to Canada or Mexico
    One commenter questioned whether, for slaughter animals going to 
Canada or Mexico, we will charge the flat rate user fee in 
Sec. 130.20(a) or the scaled user fee in Sec. 130.20(b)(1) which is 
based on the number of tests or vaccinations required for the animals 
listed on the export health certificate. This question was raised 
because all cattle, including slaughter cattle, are required to be 
tested for tuberculosis and brucellosis prior to exportation.
    To fully recover our costs, the user fees in Sec. 130.20(b)(1) 
apply whenever tests or vaccinations are required. Costs associated 
with endorsing export health certificates which cover individually 
identified animals requiring tests or vaccinations are higher than 
those which cover animals as a group which do not require tests or 
vaccinations. This is because APHIS personnel must verify the results 
of tests or vaccinations. The greater the number of animals, and the 
larger the number of tests or vaccinations, the more time consuming it 
is for APHIS personnel to perform the verifications necessary to 
endorse export health certificates. To clarify which fee is charged, we 
are revising the text in Sec. 130.20(a) and (b)(1) to indicate that 
Sec. 130.20(b)(1) applies when tests or vaccinations are required and 
Sec. 130.20(a) applies when tests and vaccinations are not required.
Reconsider User Fee Increases
    Three commenters suggested that we reconsider the user fee 
increases for export health certificates and get more input from 
industry.
    By publishing the proposed rule and requesting comments for 60 days 
we believe that we have provided industry with ample opportunity to 
provide input into the changes in the export health certificate user 
fees. Therefore, we are making no changes based on these comments.
APHIS veterinarian
    One commenter questioned what would happen when an export health 
certificate for an animal product is not endorsed by an APHIS 
veterinarian, but by another APHIS employee.
    Other designated APHIS employees may endorse export health 
certificates for animal products. Therefore, in Sec. 130.20(d), we are 
changing the term ``APHIS veterinarian'' to ``designated APHIS 
employee''.

14. Payment of User Fees (Sec. 130.50)

    One commenter suggested that we charge user fees in whole dollar 
amounts to eliminate the need for APHIS offices to keep and make 
change.
    APHIS offices should rarely need to accept cash, as we also accept 
credit cards and checks in payment for user fees. The regulations 
explain that a list of the APHIS offices which accept each form of 
payment is available from APHIS headquarters in Riverdale, MD. The 
slight inconvenience to APHIS created by accepting change is more than 
offset by convenience to the public. Therefore, we are making no 
changes based on this comment.
    Therefore, based on the rationale set forth in the proposed rule 
and in this document, we are adopting the provisions of the proposal as 
a final rule, with the changes discussed in this document.

Executive Order 12866 and Regulatory Flexibility Act
    This rule has been reviewed under Executive Order 12866. The rule 
has been determined to be significant for the purposes of Executive 
Order 12866 and, therefore, has been reviewed by the Office of 
Management and Budget.
    In accordance with 5 U.S.C. 601 et seq., we have performed a Final 
Regulatory Flexibility Analysis, set forth below, regarding the 
economic effect of this rule on small entities.
Need and Objective of This Rule
    In accordance with the Farm Bill of 1990, the Secretary of 
Agriculture is authorized to prescribe and collect fees to reimburse 
the Secretary for the cost of carrying out the provisions of the 
Federal animal quarantine laws that relate to the importation, entry, 
and exportation of animals, articles, or means of conveyance (section 
2509(c)(1) of the 1990 Farm Bill). The Secretary of Agriculture is also 
authorized, under section 2509(c)(2) of the Farm Bill, to prescribe and 
collect fees to recover the costs of carrying out certain veterinary 
diagnostics services. As a result of this authority, Congress no longer 
allocates funds to APHIS for these import- and export-related services 
and veterinary diagnostics services. Therefore, we established user 
fees which were intended to recover the full cost of providing these 
services. The cost of providing these services includes direct labor 
costs and a pro rata share of administrative support, agency overhead, 
and Departmental charges.
    When we established our original user fees on February 9, 1992, we 
used the best estimates we had available. At that time, our accounting 
system did not track costs related to these services separately from 
other appropriation funded activities. When a service has been provided 
to the users free of charge for years, it is difficult to predict the 
economic decisions people will make regarding those services after a 
user fee is established. Therefore, we had to estimate the costs and 
the demand for those services without historical data for import- and 
export-related services.
    Since we established these user fees, our accounting system has 
tracked the costs associated with user fees by imports and exports and 
for veterinary diagnostics. Therefore, we now have actual cost and 
usage data for our calculations. This has also improved the accuracy of 
our estimates for other user fees. The original user fees established 
on February 2, 1992, were primarily for export-related services. On 
September 1, 1993, we established user fees for veterinary diagnostics 
services. On

[[Page 20428]]

January 21, 1994, we established additional user fees primarily for 
import-related services. Annual reviews of our user fees, based on our 
accounting data and experience with providing these services, show that 
while many of the estimates resulted in accurate user fees which 
require only moderate increases, some of our original user fees were 
significantly lower than the cost of providing the services. Because 
these user fees were set too low, we have been running a deficit to 
provide the requested services. Therefore, these user fees must be 
increased to recover the costs of providing requested services.
    Specifically, we reviewed our records of user fees collected during 
fiscal years (FYs) 1992 through 1995. The original user fees 
established on February 9, 1992, are based on FY 90 costs. In the 5 
years since then, there has been an overall increase in all costs of 
providing services, due to inflation and changes in general economic 
conditions. Additionally, we underestimated personnel costs when we set 
the user fees. For example, in addition to anticipated Federal pay 
increases (4.2 percent in FY 92 and 3.7 percent in FY 93), in FY 94, 
there were locality pay and cost of living increases of 3.09 to 8 
percent for employees stationed in different parts of the United 
States. We also underestimated support costs, such as clerical support, 
office rent, telephone, etc., in setting our current user fees. As a 
result, the costs of endorsing export health certificates, for example, 
for which we established user fees on February 9, 1992, were 
drastically underestimated. In addition, the user fees established on 
January 21, 1994, lacked the pay raises and increased costs since they 
were calculated in 1993 based on FY 92 costs.
    As a result of general cost increases and the inherent difficulty 
in setting new user fees, as discussed above, we did not collect enough 
money in user fees during FYs 1992 through 1995 to recover the costs of 
providing the services for which we charged user fees. In fact, for 
each of those fiscal years, we incurred a deficit of over $1 million. 
As our user fees are intended to recover full cost, it is apparent that 
our user fees are too low and must be raised to reflect changes in 
actual costs and demand for services.

Changes to the Regulations

    Consequently, this rule updates certain user fees related to 
import- and export-related inspection and certification, animal 
quarantine, and veterinary diagnostics. This rule changes user fees 
that are currently charged for eight broad categories of services. 
These services include the inspection, certification, or authorization 
of: (1) live animal imports at animal import centers; (2) live animal 
imports at the Mexican border; (3) live animal imports at the Canadian 
border, airports, and ocean ports; (4) other import and inspection 
services for the importation of live animals and animal products; (5) 
veterinary diagnostics; (6) the endorsement of export health 
certificates; (7) facility rentals at APHIS' animal import centers and 
(8) import and export hourly user fees. New user fees are also being 
established for the exclusive use of additional space at the Animal 
Import Center in Newburgh, NY, for the endorsement of export health 
certificates for animal products, and for pet birds quarantined in an 
APHIS owned or supervised quarantine facility. In addition, we are 
changing our method of charging hourly user fees when import- and 
export-related services are performed outside of an employee's normal 
tour of duty.

Overall Impact of Changes

    Table 1 summarizes the estimated changes in user fees that are 
necessary to fully recover costs. This rule will result in a net 
increase in agency collections of about $3 million, from $8 million to 
$11 million. Approximately $1.1 million of this increase represents new 
user fees and $2 million is attributed to changes in current 
collections (revised and premium user fees). These changes will shift 
the burden from taxpayers to the importers and exporters who use these 
APHIS services. Additional tables providing details of the user fee 
changes summarized in Table 1 are available for inspection 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 these detailed tables are 
requested to call ahead on (202) 690-2817 to facilitate entry into the 
reading room.

             Table 1.--Summary of Estimated Collections for Import- and Export-Related Services \1\             
----------------------------------------------------------------------------------------------------------------
                            Category                                  Current        Projected        Change    
----------------------------------------------------------------------------------------------------------------
New User Fees:                                                                                                  
    Exclusive use of space at the Newburgh, NY Animal Import                                                    
     Center (9 CFR Sec.  130.3).................................  ..............        $157,109        $157,109
    Quarantine for pet birds (9 CFR Sec.  130.10)...............  ..............         265,245         265,245
    Endorsement of export health certificates for animal                                                        
     products (9 CFR Sec.  130.20)..............................  ..............         645,000         645,000
                                                                 -----------------------------------------------
        Total New User Fees.....................................  ..............       1,067,354       1,067,354
                                                                 -----------------------------------------------
Revised User Fees:                                                                                              
    Animal import centers (9 CFR Sec.  130.2)...................       2,168,468       2,461,334         292,865
    APHIS animal import centers and hourly user fees (9 CFR                                                     
     Secs.  130.3, 130.5, 130.9, 130.10, and 130.21)............         648,318         740,942          92,624
    Imports at the Mexican border (9 CFR Sec.  130.6)...........       1,047,184       1,214,532         167,349
    Imports at other ports of entry (9 CFR Sec.  130.7).........         817,862         834,251          16,388
    Import and inspection services (9 CFR Sec.  130.8)..........         944,087         970,072          25,986
    Veterinary diagnostics (9 CFR Sec.  130.16).................         450,118         429,076        (21,042)
    Endorsements of export health certificates (9 CFR Sec.                                                      
     130.20)....................................................         798,260       2,195,111       1,396,851
                                                                 -----------------------------------------------
        Total Revised User Fees.................................       6,874,296       8,845,316       1,971,020
                                                                 -----------------------------------------------
Premium User Fees (9 CFR Secs.  130.5, 130.9, and 130.21).......         990,900       1,033,319          42,419
                                                                 =================                              
        Total Revised Collections (Revised and Premium User                                                     
         Fees)..................................................       7,865,196       9,878,635       2,013,439
                                                                 =================                              

[[Page 20429]]

                                                                                                                
        Projected Total (New and Revised).......................       7,865,196      10,945,989      3,080,793 
----------------------------------------------------------------------------------------------------------------
\1\ Projections based on average annual volume estimates provided by the Financial Systems and Services Branch, 
  Budget and Accounting Division, Management and Budget, APHIS, USDA. NOTE: Column and row totals may not be    
  exact due to rounding.                                                                                        



Summary of Comments, Assessment of Issues, and Resulting Changes

    Due to the nature of this rule, most of the comments we received on 
the proposed rule focused on economic issues; several took exception to 
the results of our economic analysis. The comments raised concerns 
about potential inequitable charges for permanent and temporary 
privately owned import quarantine facilities (Sec. 130.4 and 
Sec. 130.5, respectively), impacts on small entities, increases in user 
fees for the endorsement of export health certificates, and impact on 
international trade. As a result of the issues raised about inequitable 
charges, we combined the user fee regulations for permanent and 
temporary facilities under Sec. 130.5 and removed Sec. 130.4 from the 
regulations. This will result in lower charges for economies of scale 
where there are multiple animals in a single shipment than those 
previously assessed under Sec. 130.4 for permanent facilities. 
Assessments of the other issues raised are provided in the more 
detailed economic analysis below.

Impact on Small Entities

    User fee revisions included in this rule could affect some 
importers and exporters of live animals, importers and exporters of 
animal byproducts, and firms that seek APHIS' veterinary diagnostic 
services. We received comments from importers and exporters, many of 
whom are small entities. The Small Business Administration's definition 
of a small entity involved in these activities is one whose total sales 
is less than $5 million annually. The number of entities who are 
importing and exporting live animals and would qualify as a small 
entity under this definition cannot be determined. However, except 
possibly for those entities who deal exclusively in more valuable 
animals, such as breeding or registered animals, data from the 1995 
Bureau of the Census indicates that the majority of agricultural 
entities who deal in less valuable animals, such as feeding or 
slaughter animals, can be considered small. While there is a wide range 
in the sizes of entities who use our import- and export-related 
services, our experience shows that as many as 50 percent may be 
considered large.
    To the extent that changes in user fees will impact operational 
costs or profits, any entity who utilizes APHIS's services and is 
subject to user fees will be impacted by this rule. The degree of the 
impact depends on the entity's market power, or the ability to which 
cost increases can be either absorbed or passed on to its buyers. 
Without information on either profit margins and operational expenses 
of the affected entities,2 or the supply responsiveness of the 
affected industry,3 the impacts cannot be precisely predicted. 
However, given the amount of the user fee changes (and new user fees) 
relative to the value of the imported or exported animals and animal 
products, some conclusions on overall impacts to domestic and 
international commerce are drawn below.
---------------------------------------------------------------------------

    \2\ Information on profits from sales by small entities is 
proprietary in nature and was not available to APHIS for this 
analysis.
    \3\ The measurement of supply responsiveness would provide 
information on the likely impact on an entity's production due to 
changes in operating costs.
---------------------------------------------------------------------------

Exports

    Many comments addressed the impact these user fee increases will 
have on exports. Most of these comments objected to increases in the 
user fees for the endorsement of export health certificates. Many of 
the comments we received focused on the impact on entities in the 
poultry and horse industries.
    Most of the commenters stated that the increase in the user fee for 
the endorsement of export health certificates for poultry and hatching 
eggs is too high. As explained earlier, these user fees were based on 
FY 90 costs and low estimates of personnel costs. The user fees have 
not been increased in 5 years, and the original user fees were 
drastically underestimated.
    Breeding chicks and hatching eggs, while worth only fractions of a 
dollar individually, are generally exported in batches of up to 
hundreds of thousands; the total value of these shipments could exceed 
$10,000. As shown in Table 2, the user fee for the endorsement of 
export health certificates for poultry and eggs is $21.00 (an increase 
of $19.00 from the original $2.00 user fee). The user fee is less than 
0.5 percent of the estimated value of a shipment. Therefore, while the 
increase in the user fee is significant, the user fee is still small 
relative to the total value of the shipments. Table 2: Projected User 
Fee Collections for the Endorsement of Export Health Certificates (9 
CFR Sec. 130.20).4
---------------------------------------------------------------------------

    \4\ Projections based on average annual volume estimates 
provided by the Financial Systems and Services Branch, Budget and 
Accounting Division, Management and Budget, APHIS, USDA. Note: 
Column and row totals may not be exact due to rounding.

[[Page 20430]]



----------------------------------------------------------------------------------------------------------------
                                                                User fee                       Collections      
             Category                  Annual   ----------------------------------------------------------------
                                       volume      Current        New         Change      Current     Projected 
----------------------------------------------------------------------------------------------------------------
Per Certificate User Fees:                                                                                      
    Slaughter Animals to Canada or                                                                              
     Mexico.......................        4,811       $10.00       $24.50       $14.50      $48,110     $117,870
    Non-Slaughter Horses to Canada       27,275        10.00        26.25        16.25      272,750      715,969
    Poultry.......................        7,037         2.00        21.00        19.00       14,074      147,777
    Hatching Eggs.................        7,036         2.00        21.00        19.00       14,072      147,756
Other:                                                                                                          
    Endorsements..................       20,748         4.00        16.50        12.50       82,992      342,342
Per Head User Fees:                                                                                             
    Export Animal, 1-2 tests......        2,656        38.00        52.50        14.50      100,928      139,440
        Each additional animal....       35,235         1.00         3.00         2.00       35,235      105,705
    Export Animal, 3-6 tests......        3,950        41.50        64.75        23.25      163,925      255,763
        Each additional animal....       34,905         1.25         5.00        3.754        3,631      174,525
    Export Animal, 7 + tests......          421        44.00        75.75        31.75       18,524       31,891
        Each additional animal....        2,679         1.50         6.00         4.50        4,019       16,074
                                   -----------------------------------------------------------------------------
            Projected totals......  ...........  ...........  ...........  ...........      798,260    2,195,111
----------------------------------------------------------------------------------------------------------------

    Since many of the comments related to the proposed increases in 
user fees for the endorsement of export health certificates concerned 
poultry and egg exports, we will show how this user fee is calculated 
by using, as an example, the endorsement of an export health 
certificate for poultry. The calculation for the user fees for 
endorsing other export health certificates varies by the amount of 
direct labor hours required to provide the endorsement services. The 
average amount of time it takes to endorse an export health certificate 
for poultry is 18 minutes. The direct labor time includes phone time, 
paperwork review time, and endorsement time. Using the average direct 
labor cost per hour of $34.06, the direct labor cost for 18 minutes is 
$10.08. As described earlier, the following costs are the pro rata 
share for endorsing export health certificates.
    Administrative support costs are added at about $0.69 for each 
$1.00 of direct labor incurred, adding $6.89. Administrative support 
costs include local clerical and administrative activities; indirect 
labor hours (supervision of personnel and time spent doing work that is 
not directly connected with the service but which is nonetheless 
necessary, such as repairing equipment); travel and transportation for 
personnel; supplies, equipment, and other necessary items; training; 
general supplies for offices, washrooms, cleaning, etc.; contractual 
services (such as guard service, maintenance, trash pickup, etc.); 
grounds maintenance; chemicals and glassware; and utilities (such as 
water, telephone, electricity, natural and propane gas, heating and 
diesel oil). Some administrative support items may be contractual or 
not, depending on local circumstances. For example, trash pickup may be 
provided as a contractual service or a utility. However, the costs are 
all administrative support.
    In addition, Agency overhead and departmental charges are added at 
$2.74 and $1.08, respectively. The total cost is $20.79, which is 
rounded up to the nearest quarter to $21.00. When factoring in all of 
the costs involved in endorsing an export health certificates, the user 
fees are reasonable. When comparing the proposed user fees to the 
previous user fees, which were based on FY 90 costs and were too low, 
they appear high. However, we could not continue to provide these 
services if we did not increase the user fees to fully recover our 
costs.
    The value of a non-slaughter horse could range between $1,000 and 
$50,000 and more. As shown in Table 2, the user fee for non-slaughter 
horses to Canada is $26.25 (an increase of $16.25 from the original 
$10.00 user fee). The user fee is less than 3 percent of the lower 
value for the non-slaughter horse. Therefore, the user fee is small 
relative to the total value of the horse.
    Many commenters stated that the user fees for the endorsement of 
export health certificates that require the verification of tests are 
too high. As shown in Table 2, for any animal, endorsements requiring 
the verification of 1 or 2 tests increased by $14.50 per endorsement 
(from $38.00 to $52.50). The largest increase of $31.75 per endorsement 
(from $44.00 to $75.75) relates to the endorsement of export health 
certificates that require verification of 7 or more tests required by 
the importing country. Of the 80,277 certificates endorsed in FY 94, 
only 421 certificates (or 0.5 percent) were issued that required the 
verification of 7 or more tests. These certificates covered 3,092 
animals for an average charge of $7.29 per animal ($44.00 for the first 
animal and $1.50 for additional animals on a certificate). The new user 
fees raise this average to $15.50 per animal ($75.75 for the first 
animal and $6.00 for additional animals on a certificate), or a 
difference of $8.21 per animal. Certificates that are issued in this 
category are endorsed largely for the export of breeding or registered 
animals whose worth could be over $2,000 per animal. It is therefore 
expected that these user fee increases will not have a significant 
impact on exporters, given that the amount of the increases is small in 
comparison to the value of the exported animals.

Impact on International Trade

    Several commenters suggested that the increases in user fees could 
result in a decrease in international trade. Most of the commenters 
specified trade in poultry, horses, and cattle to Canada. As stated 
above, the increases in the user fees are small in relation to the 
value of the exported animals. While it follows that some businesses 
will feel the impact of these increases, overall, the revised user fees 
are not expected to impede commerce and international trade.
    Although some countries do not currently charge for import- and 
export-related services, user fees for these services are being adopted 
by more and more countries. In fact, as of May 8, 1995, Canada charges 
user fees for certain import- and export-related services (see May 3, 
1995, Canada Gazette Part II, Vol. 129, No. 9, SOR/DORS/95-198). In 
addition, further supports have been eliminated. Therefore, we do not 
believe that U.S. exporters are at a competitive disadvantage compared 
with exporters in other countries.

[[Page 20431]]

Imports

    While most comments addressed exports, several objected to the 
increases in user fees for import-related services. For import-related 
services for animals at all ports of entry, including Canadian and 
Mexican borders, and animal import centers, increases from the previous 
user fees range from $0.25 to $21.00. Except for the increases of 
$12.75 to $21.00 for import services for equines at animal import 
centers, the other increases are all $5.50 or less, while the majority 
of these user fee increases are less than $1.00. These changes 
represent modest increases and are a small fraction of the typical cost 
of purchasing and importing a breeding grade animal into the United 
States, which ranges between $1,500 and $5,000 per head. Purchase and 
import costs for feeder and slaughter animals are often significantly 
lower per animal, but can easily exceed $1,500 per shipment depending 
on the number and type of animals in the shipment.
    The increase in user fees for other import services related to 
animal products and byproducts range from $0.50 for an application for 
a permit renewal, to $10.25 for the inspection of an approved 
establishment. Because the user fees charged in this category of 
service are based on either a per load, inspection, application, or 
certification basis, the amount of increase is small in comparison to 
the total value of the animal products and byproducts for which the 
services are required. The majority of the increases are $1.50 or less. 
The $1.50 increase per permit for the importation of germ plasm (from 
$38.00 to $39.50), for instance, is not expected to cause a significant 
economic burden to importers, given that the cost of importing semen 
could be over $100,000 per permit when imported from countries with 
foot-and-mouth disease. Although the breakdown of entity sizes is 
unknown, as stated above, the revised user fees are not expected to 
have a significant impact on either large or small importers of live 
animals and animal products.

Shift From Reimbursable Overtime to Premium User Fees

    This rule also changes the way in which hourly user fees for 
import- and export-related services conducted outside an employee's 
normal tour of duty will be charged. While revising our user fees, we 
took many factors into account, including public confusion about the 
way we charged for services provided during overtime. As a result, we 
changed the method of charging hourly user fees for import- and export-
related services provided outside of an employee's normal tour of duty. 
Now, users of these services, previously charged the hourly user fee 
plus reimbursable overtime, will be charged the single new premium user 
fee. This premium user fee reflects both changes in costs and a change 
in the structure of the user fee. The intent of this change is to avoid 
any confusion and the perception of double charging for services. The 
impact is to lower the average hourly user fees for import- and export-
related services performed outside of an employee's normal tour of 
duty.
    The $1 million projected collection for this category represents a 
modest increase, approximately $40,000, to APHIS collections. All of 
the projected calculations are not considered new user fees or new 
collections for APHIS for the following reasons. In FY 95, we collected 
$990,900 for import- and export-related services that involved a 
combination of both hourly user fees and reimbursable overtime. Of 
this, $398,425 was collected at the $50.00 hourly user fee, and 
$592,475 was collected at the reimbursable overtime rates specified in 
9 CFR 97 (for example, $37.84 for holidays and overtime other than on 
Sundays). As explained below, a portion of the $398,425 was for 
services that began during the regular tour of duty and for which the 
hourly user fee will still be charged.
    The hourly user fee charges ($398,425) include the costs for 
services which may have begun during the regular tour of duty but were 
completed on overtime in addition to the hourly user fee charge for the 
services provided during overtime. Our accounting system tracks user 
fees and reimbursable overtime separately. While we can identify total 
hourly user fees and total reimbursable overtime hours performed in 
conjunction, we cannot specifically identify the hours of services 
which began on regular time and continued into overtime.
    Next, reflecting the change in costs, we estimated FY 95 
collections using the increased FY 96 hourly rate of $56.00 plus 
reimbursable overtime. With this increase in the hourly user fee, the 
projected FY 96 collections would have been $1,040,298 ($447,823 at 
$56.00 per hour for hourly user fees and $592,475 at the reimbursable 
overtime rates as described above).
    Finally, we changed the method of charging user fees for hourly 
services performed during overtime to a single premium user fee. To 
calculate the projected FY 96 collections for the premium user fee 
($1,033,319), we used the total FY 95 hours multiplied by the average 
premium user fee (6 out of 7 days at $65.00 plus 1 out of 7 days at 
$74.00, the sum divided by 7 days in a week). Our historical accounting 
data for reimbursable overtime confirms this method resulted in a 
reasonable split between Sunday and other overtime.
    These calculations show an estimated overall increase of 
approximately $40,000. While this is a modest increase over the 
previous charges for services performed outside employees' normal tour 
of duty, this is a decrease of approximately $7,000 from the increases 
which would have been incurred under the old method. Therefore, 
entities should realize a long-term economic benefit from the lower 
increase.
    Based on the earlier discussion of the regular time, which is 
included in the estimates for reimbursable overtime, it follows that 
the premium user fee, which was estimated for the same number of hours 
as the reimbursable overtime plus hourly user fee, is an overestimate 
of charges, as some of these hours will remain at $56.00 per hour. 
Therefore, we anticipate that the increase will be lower than our 
estimate shows.

Summary

    In summary, while it follows that, if the user fees cannot be 
passed on, the profit margins of some entities may decline as user fees 
for endorsing export health certificates are increased. However, the 
revised user fees represent a small fraction of the value of the 
imported and exported animals and are not generally expected to reduce 
profits or impede exports. Indeed, the full burden of the user fee 
increases are not likely to be borne entirely by the directly affected 
entities, as some of the cost increases are expected to be passed on to 
the purchasers of these exported animals.

Alternatives

    One alternative to this rule would be to take no action. Another 
alternative to this rule would be to establish a different user fee 
structure for small businesses. We do not consider taking no action a 
reasonable alternative, because we would not recover the full cost of 
providing import- and export- related services and would continue to 
incur annual deficits of over $1 million. We also do not consider 
establishing a different user fee structure for small businesses a 
viable option. As stated above, Congress does not appropriate funds to 
APHIS for these services. Therefore, APHIS cannot exempt certain 
classes of users, such as small businesses, from the user fees, and 
cannot charge user fees that recover less

[[Page 20432]]

than the full cost of providing the service.
    Another alternative to this rule would be to spread the increased 
costs over all of the user fees, so no single user fee would increase 
significantly. Our user fees are calculated to recover the costs of the 
service for which each user fee is charged. To spread the increases 
would mean that some entities would subsidize others. The intent of 
these user fees is to shift the burden of the cost of these services 
from the general taxpayer to the entity receiving the service. 
Therefore, APHIS cannot spread the increases evenly over all of the 
user fees.

Executive Order 12778

    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. This rule (1) Preempts all State and local laws and 
regulations that are inconsistent with this rule; (2) has no 
retroactive effect; and (3) does not require administrative proceedings 
before parties may file suit in court challenging this rule.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.), the information collection or recordkeeping requirements 
included in this rule have been approved by the Office of Management 
and Budget (OMB), and there are no new requirements. The assigned OMB 
control numbers are 0579-0015, 0579-0040, 0579-0055, and 0579-0094.

List of Subjects in 9 CFR Part 130

    Animals, Birds, Diagnostic reagents, Exports, Imports, Poultry, 
Quarantine, Reporting and recordkeeping requirements, Tests.

    Accordingly, 9 CFR part 130 is amended as follows:

PART 130--USER FEES

    1. The authority citation for part 130 is revised to read as 
follows:

    Authority: 5 U.S.C. 5542; 7 U.S.C. 1622; 19 U.S.C. 1306; 21 
U.S.C. 102-105, 111, 114, 114a, 134a, 134b, 134c, 134d, 134f, 135, 
136, and 136a; 7 CFR 2.22, 2.80, and 371.2(d).

    2. In Sec. 130.1, the definitions for Germplasm and Pet bird are 
removed; the definition for Load is revised; and definitions for Germ 
plasm, Pet birds, Test, and United States are added, in alphabetical 
order, to read as follows:


Sec. 130.1  Definitions.

* * * * *
    Germ plasm. Semen, embryos, or ova.
* * * * *
    Load. Those animals, birds, or animal germ plasm, presented for 
importation into the United States in a single shipment, that originate 
from one address, are destined for one address, and require one entry 
permit or authorization.
* * * * *
    Pet birds. Birds, except ratites, which are imported for the 
personal pleasure of their individual owners and are not intended for 
resale.
* * * * *
    Test. A single analysis performed on a single specimen from an 
animal, animal product, commercial product, or animal feed.
    United States. The several States of the United States, the 
District of Columbia, Guam, the Commonwealth of the Northern Mariana 
Islands, the Commonwealth of Puerto Rico, the Virgin Islands of the 
United States, and all other territories and possessions of the United 
States.
* * * * *
    3. Section 130.2 is amended as follows:
    a. By revising the section heading and in paragraph (a), the table, 
to read as set forth below.
    b. By adding at the end of the section the OMB control number as 
set forth below.


Sec. 130.2  User fees for individual animals and certain birds 
quarantined in APHIS Animal Import Centers.

    (a) * * *

------------------------------------------------------------------------
                        Animal or bird                           Daily  
------------------------------------------------------------------------
Birds (including zoo birds, but excluding ratites and pet               
 birds imported in accordance with part 92 of this                      
 subchapter):                                                           
    0-250 grams..............................................      $1.00
    251-1,000 grams..........................................       3.25
    Over 1,000 grams, and any bird in nonstandard housing or            
     receiving nonstandard care and handling.................       7.50
Ratites:                                                                
    Chicks (less than 3 months of age).......................       5.75
    Juveniles (3 months through 10 months of age)............       8.00
    Adults (11 months of age and older)......................      16.25
Poultry (including zoo poultry):                                        
    Doves, pigeons, quail....................................       2.00
    Chickens, ducks, grouse, guinea fowl, partridge, pea                
     fowl, pheasants.........................................       3.50
    Game cocks, geese, swans, turkeys, any poultry housed in            
     nonstandard housing or receiving nonstandard care and              
     handling................................................       8.25
Equines (including zoo equines, but excluding miniature                 
 horses):                                                               
    1st through 3rd day......................................     149.50
    4th through 7th day......................................     108.25
    8th and later days.......................................      91.75
Miniature horses.............................................      40.25
Zoo animals (except equines, birds, and poultry).............      32.25
Domestic animals:                                                       
    Camels, cattle, bison, buffalo...........................      56.50
    All others...............................................      15.00
------------------------------------------------------------------------

* * * * *
(Approved by the Office of Management and Budget under control 
number 0579-0094.)

    4. Section 130.3 is amended as follows:
    a. In paragraph (a)(1), by revising the table to read as set forth 
below.
    b. By revising paragraph (c)(3) to read as set forth below.
    c. By revising the OMB control numbers at the end of the section as 
set forth below.


Sec. 130.3  User fees for exclusive use of space at APHIS Animal Import 
Centers.

    (a)(1) * * *

[[Page 20433]]



------------------------------------------------------------------------
                                                            Monthly user
       Animal import center            Space available           fee    
------------------------------------------------------------------------
Miami, FL:                                                              
  South Wing.....................  6,952 sq. ft...........    $30,285.00
                                   (645.9 sq. m.).........              
  North Wing.....................  6,545 sq. ft...........     29,377.00
                                   (608.1 sq. m.).........              
Newburgh, NY:                                                           
  Space A........................  5,904 sq. ft...........     47,609.00
                                   (548.5 sq. m.).........              
  Space B........................  9,742 sq. ft...........     78,555.00
                                   (905 sq. m.)                         
------------------------------------------------------------------------

* * * * *
    (c) * * *
    (3) If the importer chooses to pay for additional services on an 
hourly basis, the user fees for each employee required to perform the 
service are:
    (i) $56.00 per hour;
    (ii) $14.00 per quarter-hour;
    (iii) With a minimum of $16.50.
* * * * *
(Approved by the Office of Management and Budget under control 
numbers 0579-0040 and 0579-0094.)


Sec. 130.4  [Removed and reserved]

    5. Section 130.4 is removed and reserved.
    6. Section 130.5 is amended as follows:
    a. The section heading, is revised to read as set forth below.
    b. In paragraph (a), before the word ``temporary'', by adding the 
words ``permanent or''.
    c. In paragraph (b)(1), by removing ``$50'' and adding ``$56'' in 
its place.
    d. In paragraph (b)(2), by removing ``$12.50'' and adding 
``$14.00'' in its place.
    e. In paragraph (b)(3), by removing ``$16.00'' and adding 
``$16.50'' in its place.
    f. By adding a new paragraph (c) to read as set forth below.
    g. By adding at the end of the section the OMB control number as 
set forth below.


Sec. 130.5  User fees for services at privately operated permanent and 
temporary import-quarantine facilities.

* * * * *
    (c) If a service must be conducted on a Sunday or holiday or at any 
other time outside the normal tour of duty of the employee, then the 
premium user fee rate, as provided for in 9 CFR part 97, in lieu of the 
user fee listed in paragraph (b) of this section, must be paid for each 
employee required to perform each service:
    (1) $65.00 per hour for weekdays and holidays;
    (2) $16.25 per quarter-hour for weekdays and holidays;
    (3) $74.00 per hour for Sundays;
    (4) $18.50 per quarter-hour for Sundays;
    (5) With a minimum of $16.50.

(Approved by the Office of Management and Budget under control 
number 0579-0094.)

    7. Section 130.6 is amended as follows:
    a. In paragraph (a), by removing ``$16.00'' and adding ``$16.50'' 
in its place.
    b. In paragraph (a), by removing the phrase ``live animals imported 
into or entering the United States'' and adding ``live animals 
presented for importation into or entry into the United States'' in its 
place.
    c. In paragraph (a), by revising the table to read as set forth 
below.


Sec. 130.6  User fees for import or entry services for live animals at 
land border ports along the United States-Mexico border.

    (a) * * *

------------------------------------------------------------------------
                                                                   User 
                                                                   fee  
                      Type of live animal                          (per 
                                                                  head) 
------------------------------------------------------------------------
Feeder.........................................................    $1.75
Slaughter......................................................     2.50
Horses, other than slaughter...................................    29.25
In-bond or in transit..........................................     3.75
Any ruminants not covered above................................     6.00
------------------------------------------------------------------------

* * * * *
    8. Section 130.7 is amended as follows:
    a. In paragraph (a), by removing ``$16.00'' and adding ``$16.50'' 
in its place.
    b. In paragraph (a), by removing the phrase ``live animals imported 
into or entering the United States'' and adding ``live animals 
presented for importation into or entry into the United States'' in its 
place.
    c. In paragraph (a), by revising the table to read as set forth 
below:


Sec. 130.7  User fees for import or entry services for live animals at 
all other ports of entry.

    (a) * * *

------------------------------------------------------------------------
             Type of live animal                       User fee         
------------------------------------------------------------------------
Animals being imported into the United                                  
 States:                                                                
Horses, other than slaughter and in transit.  $19.00 per head.          
Breeding animals (Grade animals, except       ..........................
 horses):                                                               
    Swine...................................  0.50 per head.            
     Sheep and goats........................  0.50 per head.            
    All others..............................  2.25 per head.            
Registered animals, all types...............  4.00 per head.            
Feeder animals:                               ..........................
    Cattle (not including calves)...........  1.00 per head.            
    Swine...................................  0.25 per head.            
    Sheep and calves........................  0.25 per head.            
Slaughter animals, all types................  16.50 per load.           
Poultry (including eggs), imported for any    33.00 per load.           
 purpose.                                                               
Animals transiting\1\ the United States:                                
    Cattle..................................  1.00 per head.            
    Swine...................................  0.25 per head.            
    Sheep and goats.........................  0.25 per head.            

[[Page 20434]]

                                                                        
    Horses and all other animals............  4.50 per head.            
------------------------------------------------------------------------
\1\ The user fee in this section will be charged for intransit          
  authorizations at the port where the authorization services are       
  performed. For additional services provided by APHIS, at any port, the
  applicable hourly user fee will apply.                                


* * * * *
    9. In Sec. 130.8, paragraph (a) is amended by revising the table to 
read as follows:


Sec. 130.8  User fees for other services.

    (a) *  *  *

------------------------------------------------------------------------
                     Service                             User fee       
------------------------------------------------------------------------
Inspection for approval of slaughter                                    
 establishment:                                                         
    Initial approval............................  $246.50 for all       
                                                   inspections required 
                                                   during the year.     
    Renewal.....................................  213.50 for all        
                                                   inspections required 
                                                   during the year.     
Pet birds, except pet birds of U.S. origin                              
 entering the United States from Canada:                                
    Which have been out of United States more     169.75 per lot.       
     than 60 days.                                                      
    Which have been out of United States 60 days  71.25 per lot.        
     or less.                                                           
Germ Plasm Being imported: \1\                                          
    Semen.......................................  39.50 per load.       
    Embryo......................................  39.50 per load.       
Germ Plasm Being exported: \2\                                          
    Semen.......................................  33.50 per certificate.
    Embryo (up to 5 donor pairs)................  54.75 per certificate.
    Embryo (each additional group of donor        24.75 per group of    
     pairs, up to 5 pairs per group, on the same   donor pairs.         
     certificate).                                                      
Processing VS form 16-3, ``Application for                              
 Permit to Import Controlled Material/Import or                         
 Transport Organisms or Vectors'':                                      
    For permit to import fetal bovine serum when  208.50 per            
     facility inspection is required.              application.         
    For all other permits.......................  27.50 per application.
    Amended application.........................  11.50 per amended     
                                                   application.         
    Application renewal.........................  15.00 per application.
Fetal Bovine Serum sample verification..........  666.00 per            
                                                   verification.        
Import compliance assistance....................  24.00 per release.    
Release from export agricultural hold...........  24.00 per release.    
Inspection of approved establishments,                                  
 warehouses, and facilities under 9 CFR parts 94                        
 through 96:                                                            
    Approval (Compliance Agreement).............  262.75 for first year 
                                                   of 3-year approval   
                                                   (for all inspections 
                                                   required during the  
                                                   year).               
    Renewed approval............................  152.00 per year for   
                                                   second and third     
                                                   years of 3-year      
                                                   approval (for all    
                                                   inspections required 
                                                   during the year).    
------------------------------------------------------------------------
\1\ For inspection of empty containers being imported into the United   
  States, the applicable hourly user fee would apply, unless a user fee 
  has been assessed under 7 CFR part 354.3.                             
\2\ This user fee includes a single inspection and resealing of the     
  container at the APHIS employee's regular tour of duty station or at a
  limited port. For each subsequent inspection and resealing required,  
  the applicable hourly user fee would apply.                           

* * * * *
    10. Section 130.9 is amended as follows:
    a. In paragraph (a), introductory text, by removing ``$50'' and 
adding ``$56'' in its place, and by removing ``$12.50'' and adding 
``$14.00'' in its place.
    b. In paragraph (a), introductory text, by removing ``$16.00'' and 
adding ``$16.50, for each employee required to perform the service'' in 
its place.
    c. By revising paragraph (b) to read as set forth below.


Sec. 130.9  User fees for miscellaneous import or entry services.

* * * * *
    (b) If a service must be conducted on a Sunday or holiday or at any 
other time outside the normal tour of duty of the employee, then the 
premium user fee rate, as provided for in 9 CFR part 97, in lieu of the 
user fee listed in paragraph (a) of this section, must be paid for each 
employee required to perform each service:
    (1) $65.00 per hour for weekdays and holidays;
    (2) $16.25 per quarter-hour for weekdays and holidays;
    (3) $74.00 per hour for Sundays;
    (4) $18.50 per quarter-hour for Sundays;
    (5) With a minimum of $16.50.
* * * * *
    11. In Sec. 130.50(b)(1), footnote 8 and the reference to it are 
redesignated as footnote 9, and in Sec. 130.20(a), footnote 7 and the 
reference to it, are redesignated as footnote 8.
    12. A new Sec. 130.10 is added to read as follows:


Sec. 130.10  User fees for pet birds quarantined at APHIS-owned or 
supervised quarantine facilities.

    (a) The person for whom the service is provided and the person 
requesting the service are jointly and severally liable for the 
following user fees, which include standard care, feed, and

[[Page 20435]]

handling, and which must be paid for each animal or bird quarantined in 
an Animal Import Center 7 or other APHIS owned or supervised 
quarantine facility:
---------------------------------------------------------------------------

    \7\  APHIS Animal Import Centers are located in Honolulu, HI, 
Miami, FL, and Newburgh, NY. The addresses of these facilities are 
published in part 92 of this chapter.

------------------------------------------------------------------------
                                                                  Daily 
                  Number of birds is isolette                      user 
                                                                   fee  
------------------------------------------------------------------------
1..............................................................    $6.50
2..............................................................     7.75
3..............................................................     9.25
4..............................................................    10.75
5..............................................................    12.00
------------------------------------------------------------------------

    (b) Based on the information provided to APHIS personnel, APHIS 
personnel at the Animal Import Center or other APHIS owned or 
supervised quarantine facility will determine the appropriate number of 
birds that should be housed per isolette.
    (c) If the person or persons for whom the service is provided or 
the person or persons requesting the service request additional 
services on an hourly basis, the user fees for each employee required 
to perform the service are:
    (1) $56.00 per hour;
    (2) $14.00 per quarter-hour;
    (3) With a minimum of $16.50.

(Approved by the Office of Management and Budget under control 
number 0579-0094.)

    13. Section 130.14 is amended as follows:
    a. By revising the section heading to read as set forth below.
    b. In paragraph (a), after the term ``NVSL'', by adding the phrase 
``or at authorized import sites (excluding FADDL)''.
    c. In paragraph (a), by revising the text of footnote 1 to the 
table to read as set forth below.
    d. By adding a new paragraph (c) to read as set forth below.
    e. By adding at the end of the section the OMB control numbers as 
set forth below.


Sec. 130.14  User fees for tests performed by the NVSL or at authorized 
import sites (excluding FADDL).

    (a) * * *

    \1\ Tests with multiple and subsequent antigens can be set up 
for a fraction of the cost of multiple single-antigen tests. Tests 
subsequent to the first antigen used for these assays are reduced 
down to 20% of the cost of using the first antigen. The following 
are examples of these cost savings: complement fixation (CF) tests 
for equine encephalomyelitis or vesicular stomatitis; 
hemagglutination inhibition (HI) for equine encephalomyelitis or 
equine influenza; virus neutralization (VN) tests for porcine 
respiratory and reproductive syndrome. For example, for CF tests for 
eastern equine encephalomyelitis (EEE), western equine 
encephalomyelitis (WEE), and Venezuelan equine encephalomyelitis 
(VEE) and for VN tests for the New Jersey and Indiana serovars of 
vesicular stomatitis (VS), the costs are as follows: EEE--$9.00, WEE 
and VEE--$2.00 each; VS New Jersey--$7.50, VS Indiana--$1.50. The 
total of these five assays is $22.00 for each specimen submitted.

* * * * *
    (c) The user fees in this section do not include any costs that may 
be incurred due to special mail handling, such as express, overnight, 
or foreign mailing. If a test requires special mail handling, all costs 
incurred must be paid by the user as specified in paragraph (a) of this 
section, in addition to the user fee listed in paragraph (a) of this 
section.

(Approved by the Office of Management and Budget under control 
numbers 0579-0055 and 0579-0094.)

    14. Section 130.15 is amended as follows:
    a. In paragraph (a), by revising the text of footnote 1 to the 
table to read as set forth below.
    b. By adding a new paragraph (c) to read as set forth below.
    c. By adding at the end of the section the OMB control numbers as 
set forth below.


Sec. 130.15  User fees for tests performed at FADDL.

    (a) * * *

    \1\ Tests with multiple and subsequent antigens can be set up 
for a fraction of the cost of multiple single-antigen tests. Tests 
subsequent to the first antigen used for these assays are reduced 
down to 20% of the cost of using the first antigen. The following 
assays are examples of these cost savings: complement fixation (CF) 
tests for foot-and-mouth disease or vesicular stomatitis; virus 
neutralization (VN) tests for foot-and-mouth disease or vesicular 
stomatitis. For example, for CF and VN tests for foot-and-mouth 
disease A, O, and C antigens, the costs are as follows: CF A 
antigen--$30.50, O antigen--$6.25, and C antigen--$6.25; VN A 
antigen--$22.00, O antigen--$4.50, and C antigen--$4.50. The total 
of these six assays is $74.00 for each specimen tested for these 
agents.

* * * * *
    (c) The user fees in this section do not include any costs that may 
be incurred due to special mail handling, such as express, overnight, 
or foreign mailing. If a test requires special mail handling, all costs 
incurred must be paid by the user as specified in paragraph (a) of this 
section in addition to the user fee listed in paragraph (a) of this 
section.

(Approved by the Office of Management and Budget under control 
numbers 0579-0055 and 0579-0094.)
    15. Section 130.16 is amended as follows:
    a. In paragraph (a), in the table, by revising the entry for 
``Virus isolation'' and by adding a new test in alphabetical order to 
read as set forth below.
    b. By adding a new paragraph (c) to read as set forth below.
    c. By adding at the end of the section the OMB control numbers as 
set forth below.


Sec. 130.16  User fees for reference assistance testing.

    (a) *  *  *

------------------------------------------------------------------------
                                                                   User 
                              Test                                 fee  
------------------------------------------------------------------------
                                                                        
                  *        *        *        *        *                 
(3) Other tests:                                                        
                                                                        
                *         *         *         *         *               
Virus isolation (except Newcastle disease virus)...............    29.75
Virus isolation for Newcastle disease virus....................    14.00
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------

* * * * *
    (c) The user fees in this section do not include any costs that may 
be incurred due to special mail handling, such as express, overnight, 
or foreign mailing. If a test requires special mail handling, all costs 
incurred must be paid by the user as specified in paragraph (a) of this 
section in addition to the user fee listed in paragraph (a) of this 
section.
(Approved by the Office of Management and Budget under control 
numbers 0579-0055 and 0579-0094.)

    16. Section 130.17 is amended as follows:
    a. In paragraph (a), in the table, in the entry for Johnin: OT, 
under the Unit (ml.) column, by removing ``10'' and adding ``2'' in its 
place.
    b. By adding a new paragraph (c) to read as set forth below.
    c. By adding at the end of the section the OMB control number as 
set forth below.


Sec. 130.17  User fees for diagnostic reagents, slide sets, and tissue 
sets.

* * * * *
    (c) The user fees in this section do not include any costs that may 
be incurred due to special mail handling, such as express, overnight, 
or foreign mailing. If a test requires special mail handling, all costs 
incurred must be paid by the user as specified in paragraph (a) of this 
section in addition to the user fee listed in paragraph (a) of this 
section.
(Approved by the Office of Management and Budget under control 
number 0579-0094.)


[[Page 20436]]


    17. Section 130.18 is amended as follows:
    a. By redesignating the existing text as paragraph (a).
    b. By adding a new paragraph (b) to read as set forth below.
    c. By adding at the end of the section the OMB control number as 
set forth below.


Sec. 130.18  User fees for sterilization by gamma radiation.

    (a) * * *
    (b) The user fees in this section do not include any costs that may 
be incurred due to special mail handling, such as express, overnight, 
or foreign mailing. If a test requires special mail handling, all costs 
incurred must be paid by the user as specified in paragraph (a) of this 
section in addition to the user fee listed in paragraph (a) of this 
section.

(Approved by the Office of Management and Budget under control 
number 0579-0094.)

    18. Section 130.20 is amended as follows:
    a. By revising paragraph (a) to read as set forth below.
    b. By revising (b)(1) to read as set forth below.
    c. In paragraph (c), by removing the words ``it is endorsed'' and 
by adding the phrase ``the export health certificate is prepared for 
endorsement completely at the site of the inspection'' in their place.
    d. In paragraph (c), by removing the reference ``Sec. 130.7'' and 
adding ``Sec. 130.21'' in its place.
    e. By redesignating paragraph (d) as paragraph (e) and adding a new 
paragraph (d) to read as set forth below.


Sec. 130.20  User fees for endorsing export health certificates.

    (a) All user fees in this paragraph are for services provided for 
the endorsement of export health certificates which do not require the 
verification of tests or vaccinations. The person for whom the service 
is provided and the person requesting the service are jointly and 
severally liable for paying the following user fees for each export 
health certificate \8\ endorsed for the following types of animals, 
birds, or animal products, regardless of the number of animals, birds, 
or animal products covered by the certificate.
---------------------------------------------------------------------------

    \8\ An export health certificate may need to be endorsed for an 
animal being exported from the United States if the country to which 
the animal is being shipped requires one. APHIS endorses export 
health certificates as a service.

------------------------------------------------------------------------
                                                                   User 
                     Certificate categories                        fee  
------------------------------------------------------------------------
Slaughter animals, of any type, moving to Canada or Mexico.....   $24.50
Nonslaughter horses to Canada..................................    26.25
Poultry........................................................    21.00
Hatching eggs..................................................    21.00
Animal products................................................    21.50
Other endorsements or certifications...........................    16.50
------------------------------------------------------------------------

    (b)(1) All user fees in this paragraph are for services provided 
for the endorsement of export health certificates which require the 
verification of tests or vaccinations. The person for whom the service 
is provided and the person requesting the service are jointly and 
severally liable for paying the following user fees for each export 
health certificate endorsed for animals and birds, depending on the 
number of animals covered by the certificate and the number of tests 
required.

------------------------------------------------------------------------
                                         Number of animals or           
     Number of tests/vaccinations        birds on certificate   User fee
------------------------------------------------------------------------
1-2..................................  First animal...........    $52.50
                                       Each additional animal.      3.00
3-6..................................  First animal...........     64.75
                                       Each additional animal.      5.00
7 or more............................  First animal...........     75.75
                                       Each additional animal.      6.00
------------------------------------------------------------------------

* * * * *
    (d) The user fees prescribed in this section will not apply if a 
requested export health certificate is not endorsed by a designated 
APHIS employee. The minimum user fee of $16.50 will be charged for each 
export health certificate that is requested and reviewed, but not 
endorsed.
* * * * *
    19. Section 130.21 is amended as follows:
    a. By revising paragraphs (a)(1) through (a)(5) to read as set 
forth below.
    b. By adding new paragraphs (a)(6) and (a)(7) to read as set forth 
below.
    c. In paragraph (b) introductory text, before the colon, by adding 
the phrase ``charged per each employee required to perform the 
service''.
    d. In paragraph (b)(1), by removing ``$50'' and adding ``$56'' in 
its place.
    e. In paragraph (b)(2), by removing the figure ``$12.50'' and 
adding ``$14.00'' in its place.
    f. In paragraph (b)(3), by removing the figure ``$16.00'' and 
adding ``$16.50'' in its place.
    g. By revising paragraph (c) to read as set forth below.


Sec. 130.21  User fees for inspection and supervision services provided 
within the United States for export animals, birds, and animal products 
and byproducts.

    (a) * * *
    (1) Inspecting an export isolation facility and the animals in it;
    (2) Supervising animal or bird rest periods prior to export;
    (3) Supervising loading or unloading of animals or birds for export 
shipment;
    (4) Inspecting means of conveyance used to export animals or birds;
    (5) Conducting inspections under authority of part 156 of this 
chapter;
    (6) Approving or inspecting an embryo or semen collection center or 
the animals in it; and
    (7) Other export or embarkation services not specified elsewhere in 
this part.
* * * * *
    (c) If a service must be conducted on a Sunday or holiday or at any 
other time outside the normal tour of duty of the employee, then the 
premium user fee rate, as provided for in 9 CFR part 97, in lieu of the 
user fee listed in paragraph (b) of this section, must be paid for each 
employee required to perform each service:
    (1) $65.00 per hour for weekdays and holidays;
    (2) $16.25 per quarter-hour for weekdays and holidays;
    (3) $74.00 per hour for Sundays;
    (4) $18.50 per quarter-hour for Sundays;
    (5) With a minimum of $16.50.
* * * * *
    20. Section 130.50 is amended as follows:
    a. In paragraph (b)(1), newly designated footnote 9 is revised to 
read as set forth below.
    b. In paragraph (b)(2), immediately before the semi-colon, by 
adding ``drawn on a U.S. bank in U.S. dollars and made payable to the 
U.S. Department of Agriculture or USDA''.
    c. In paragraph (b)(3), immediately before the semi-colon, by 
adding ``drawn on a U.S. bank in U.S. dollars and made payable to the 
U.S. Department of Agriculture or USDA''.
    d. By revising paragraph (b)(4) to read as set forth below.


Sec. 130.50  Payment of user fees.

* * * * *
    (b) * * *
    (4) Credit cards (VISATM or MasterCardTM) if payment is 
made at an Animal Import Center or an APHIS office that is equipped to 
process credit cards.\9\
---------------------------------------------------------------------------

    \9\ A list of Animal Import Centers and APHIS offices that 
accept cash or credit cards may be obtained from the Animal and 
Plant Health Inspection Service, Veterinary Services, National 
Center for Import and Export, 4700 River Road Unit 38, Riverdale, MD 
20737-1231.

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

[[Page 20437]]

* * * * *
    Done in Washington, DC, this 1st day of May 1996.
Terry L. Medley,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 96-11211 Filed 5-6-96; 8:45 am]
BILLING CODE 3410-34-P