[Federal Register Volume 61, Number 108 (Tuesday, June 4, 1996)]
[Rules and Regulations]
[Pages 28002-28003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13833]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 1230
[No. LS-96-001]
Pork Promotion, Research, and Consumer Information Order--
Increase in Importer Assessments
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer
Information Act (Act) of 1985 and the Order issued thereunder, this
final rule increases the amount of the assessment per pound due on
imported pork and pork products to reflect an increase in the 1995
five-market average price for domestic barrows and gilts. This action
brings the equivalent market value of the live animals from which such
imported pork and pork products were derived in line with the market
values of domestic porcine animals. These changes will facilitate the
continued collection of assessments on imported porcine animals, pork,
and pork products.
EFFECTIVE DATE: July 5, 1996.
FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing
Programs Branch, 202/720-1115.
SUPPLEMENTARY INFORMATION: The Department of Agriculture (Department)
is issuing this final rule in conformance with Executive Order 12866.
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This is not intended to have a retroactive
effect. The Act states that the statute is intended to occupy the field
of promotion and consumer education involving pork and pork products
and of obtaining funds thereof from pork producers and that the
regulation of such activity (other than a regulation or requirement
relating to a matter of public health or the provision of State or
local funds for such activity) that is in addition to or different from
the Act may not be imposed by a State.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under Sec. 1625 of the Act, a
person subject to an order may file a petition with the Secretary
stating that such order, a provision of such order or an obligation
imposed in connection with such order is not in accordance with law;
and requesting a modification of the order or an exemption from the
order. Such person is afforded the opportunity for a hearing on the
petition. After the hearing, the Secretary would rule on the petition.
The Act provides that the district court of the United States in the
district in which such person resides or does business has jurisdiction
to review the Secretary's determination, if a complaint is filed not
later than 20 days after the date such person receives notice of such
determination.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 United States Code(U.S.C.) 601 et seq.), the Agricultural
Marketing Service (AMS) has considered the economic impact of this
final action on small entities. The effect of the Order upon small
entities was discussed in the September 5, 1986, issue of the Federal
Register (51 FR 31898), and it was determined that the Order would not
have a significant effect upon a substantial number of small entities.
Many of the estimated 200 importers may be classified as small
entities. This final rule increases the amount of assessments on
imported pork and pork products subject to assessment by two-hundredths
of a cent per pound, or as expressed in cents per kilogram, four-
hundredths of a cent per kilogram. Adjusting the assessments on
imported pork and pork products would result in an estimated increase
in assessments of $104,000 over a 12-month period. Accordingly, the
Administrator of AMS has determined that this action will not have a
significant economic impact on a substantial number of small entities.
The Act (7 U.S.C. 4801-4819) approved December 23, 1985, authorized
the establishment of a national pork promotion, research, and consumer
information program. The program was funded by an initial assessment
rate of 0.25 percent of the market value of all porcine animals
marketed in the United States and an equivalent amount of assessment on
imported porcine animals, pork, and pork products. However, that rate
was increased to 0.35 percent in 1991 (56 FR 51635) and to 0.45 percent
effective September 3, 1995 (60 FR 29963). The final Order establishing
a pork promotion, research, and consumer information program was
published in the September 5, 1986, issue of the Federal Register (51
FR 31898; as corrected, at 51 FR 36383 and amended at 53 FR 1909, 53 FR
30243, 56 FR 4, 56 FR 51635, and 60 FR 29963) and assessments began on
November 1, 1986.
The Order requires importers of porcine animals to pay the U.S.
Customs Service (USCS), upon importation, the assessment of 0.45
percent of the animal's declared value and importers of pork and pork
products to pay USCS, upon importation, the assessment of 0.45 percent
of the market value of the live porcine animals from which such pork
and pork products were produced. This final rule increases the
assessments on all of the imported pork and pork products subject to
assessment as published in the Federal Register as a final rule June 7,
1995, and effective September 3, 1995; (60 FR 29965). This increase is
consistent with the increase in the annual average price of domestic
barrows and gilts for calendar year 1995 as reported by USDA, AMS,
Livestock and Grain Market News (LGMN) Branch. This increase in
assessments will make the equivalent market value of the live porcine
animal from which the imported pork and pork products were derived
reflect the recent increase in the market value of domestic porcine
animals, thereby promoting comparability between importer and domestic
assessments. This final rule will not change the current assessment
rate of 0.45 percent of the market value.
The methodology for determining the per pound amounts for imported
pork and pork products was described in the Supplementary Information
accompanying the Order and published in the September 5, 1986, Federal
Register at 51 FR 31901. The weight of imported pork and pork products
is converted to a carcass weight equivalent by utilizing conversion
factors which are published in the Department's Statistical Bulletin
No. 697 ``Conversion Factors and Weights and Measures.'' These
conversion factors take into account the removal of bone, weight lost
in cooking or other processing, and the nonpork components of pork
products. Secondly, the carcass weight equivalent is converted to a
live animal equivalent weight by dividing the carcass weight equivalent
by 70 percent, which is the average dressing percentage of porcine
animals in the United States. Thirdly, the equivalent value of the live
porcine animal is determined by multiplying the live animal equivalent
weight by an annual average market price for barrows and gilts as
reported by USDA, AMS, LGMN Branch. This average price is published on
a yearly basis during the month of January in LGMN Branch's publication
``Livestock, Meat, and Wool Weekly Summary and Statistics.'' Finally,
the equivalent value is multiplied by the applicable assessment rate of
0.45 percent due on imported
[[Page 28003]]
pork and pork products. The end result is expressed in an amount per
pound for each type of pork or pork product. To determine the amount
per kilogram for pork and pork products subject to assessment under the
Act and Order, the cent per pound assessments are multiplied by a
metric conversion factor 2.2046 and carried to the sixth decimal.
The formula in the preamble for the Order at 51 FR 31901
contemplated that it would be necessary to recalculate the equivalent
live animal value of imported pork and pork products to reflect changes
in the annual average price of domestic barrows and gilts to maintain
equity of assessments between domestic porcine animals and imported
pork and pork products.
The average annual market price increased from $39.57 in 1994 to
$41.76 in 1995, an increase of about 6 percent. This increase will
result in a corresponding increase in assessments for all HTS numbers
listed in the table in Sec. 1230.110, 60 FR 29965; June 7, 1995, of an
amount equal to two-hundredths of a cent per pound, or as expressed in
cents per kilogram, four-hundredths of a cent per kilogram. Based on
the most recent available Department of Commerce, Bureau of Census,
data on the volume of imported pork and pork products, the increase in
assessment amounts would result in an estimated $104,000 increase in
assessments over a 12-month period.
On March 22, 1996, AMS published in the Federal Register (61 FR
11776) a proposed rule which would increase the per pound assessment on
imported pork and pork products consistent with increases in the 1995
average prices of domestic barrows and gilts to provide comparability
between imported and domestic assessments. The proposal was published
with a request for comments by April 22, 1996. No comments were
received.
Accordingly, this final rule establishes the new per-pound and per-
kilogram assessments on imported pork and pork products.
List of Subjects in 7 CFR Part 1230
Administrative practice and procedure, Advertising, Agricultural
research, Marketing agreement, Meat and meat products, Pork and pork
products.
For the reasons set forth in the preamble, 7 CFR Part 1230 is
amended as follows:
PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION
1. The authority citation for 7 CFR Part 1230 continues to read as
follows:
Authority: 7 U.S.C. 4801-4819.
Subpart B--[Amended]
2. In Subpart B--Rules and Regulations, Sec. 1230.110 is revised to
read as follows:
Sec. 1230.110 Assessments on imported pork and pork products.
(a) The following HTS categories of imported live porcine animals
are subject to assessment at the rate specified.
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Live porcine
animals Assessment
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0103.10.0000... 0.45 percent Customs Entered Value.
0103.91.0000... 0.45 percent Customs Entered Value.
0103.92.0000... 0.45 percent Customs Entered Value.
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(b) The following HTS categories of imported pork and pork products
are subject to assessment at the rates specified.
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Assessment
Pork and pork products ---------------------
Cents/lb Cents/kg
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0203.11.0000...................................... .27 .507058
0203.12.1010...................................... .27 .507058
0203.12.1020...................................... .27 .507058
0203.12.9010...................................... .27 .507058
0203.12.9020...................................... .27 .507058
0203.19.2010...................................... .31 .573196
0203.19.2090...................................... .31 .573196
0203.19.4010...................................... .27 .507058
0203.19.4090...................................... .27 .507058
0203.21.0000...................................... .27 .507058
0203.22.1000...................................... .27 .507058
0203.22.9000...................................... .27 .507058
0203.29.2000...................................... .31 .573196
0203.29.4000...................................... .27 .507058
0206.30.0000...................................... .27 .507058
0206.41.0000...................................... .27 .507058
0206.49.0000...................................... .27 .507058
0210.11.0010...................................... .27 .507058
0210.11.0020...................................... .27 .507058
0210.12.0020...................................... .27 .507058
0210.12.0040...................................... .27 .507058
0210.19.0010...................................... .31 .573196
0210.19.0090...................................... .31 .573196
1601.00.2010...................................... .37 .683426
1601.00.2090...................................... .37 .683426
1602.41.2020...................................... .41 .749564
1602.41.2040...................................... .41 .749564
1602.41.9000...................................... .27 .507058
1602.42.2020...................................... .41 .749564
1602.42.2040...................................... .41 .749564
1602.42.4000...................................... .27 .507058
1602.49.2000...................................... .37 .683426
1602.49.4000...................................... .31 .573196
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Dated: May 28, 1996.
Kenneth C. Clayton,
Acting Administrator.
[FR Doc. 96-13833 Filed 6-3-96; 8:45 am]
BILLING CODE 3410-02-P