[Federal Register Volume 61, Number 123 (Tuesday, June 25, 1996)]
[Rules and Regulations]
[Pages 32641-32643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15850]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Part 782
RIN 0560-AE37
End-Use Certificate Program
AGENCY: Farm Service Agency, Agriculture.
ACTION: Final Rule.
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SUMMARY: A proposed rule was published on November 14, 1995, (60 FR
57198) with respect to the End-Use Certificate Program. This final rule
adopts, with minor changes, the provisions of the proposed rule.
Accordingly, this rule amends reporting requirements, reporting
deadlines, and the required notification process in a manner that
increases program effectiveness and efficiency for government and
affected industries by requiring all grain handlers to provide
immediate notification to the buyer when wheat being purchased or
handled is of Canadian origin. The provisions of this regulation also
simplify the reporting burden placed on importers, subsequent buyers,
end users, and exporters by extending reporting deadlines from 10
workdays to 15 workdays, and by permitting the computer generation and
facsimile transmission of required reporting documentation.
EFFECTIVE DATE: June 25, 1996.
FOR FURTHER INFORMATION CONTACT: Helen Linden, Agricultural Service
Agency, P.O. Box 2415, Ag Box 0553, Washington, DC 20013-2415;
Telephone (202) 690-4321.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be not significant for the
purposes of Executive Order 12866 and therefore has not been reviewed
by the Office of Management and Budget (OMB).
Executive Order 12778
This final rule has been reviewed in accordance with Executive
Order 12778. The provisions of this final rule do not preempt State
laws, are not retroactive, and do not involve administrative appeals.
Environmental Evaluation
It has been determined by an environmental evaluation that this
action will not have a significant impact on the quality of the human
environment. Therefore, neither an Environmental Assessment nor an
Environmental Impact Analysis is needed.
Executive Order 12372
This program/activity is not subject to the provisions of Executive
Order 12372, which requires intergovernmental consultation with State
and local officials. See notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24, 1983).
Paperwork Reduction Act
This rule amends the reporting requirements by extending reporting
deadlines and incorporating alternative reporting methods. Since the
effective date of the End-Use Certificate Program, the Farm Service
Agency (FSA) has determined that entities required to file form FSA-
750, End-Use Certificate for Wheat, and form FSA-751, Wheat Consumption
and Resale Report, have encountered some difficulty in meeting
[[Page 32642]]
the requirement that these forms be filed with the Kansas City
Commodity Office (KCCO) within 10 workdays following the date of entry,
or the date of resale, as applicable. This rule increases the amount of
time to satisfy the reporting requirements from 10 workdays following
the date of entry or resale to 15 workdays following the date of entry
or resale. This action provides increased flexibility for entities that
are required to file such reports without decreasing government
efficiency in administering the program. Additionally, FSA has received
numerous requests to permit facsimile transmission and computer
generation of forms FSA-750 and FSA-751. In an attempt to accommodate
technology that is currently available, FSA will accept such report
submissions under the End-Use Certificate Program. While all of the
entities that are required to file forms FSA-750 and FSA-751 may
potentially be affected by these changes in reporting requirements, no
entities will be adversely affected.
The changes in this rule do not affect recordkeeping requirements.
The reporting requirements for FSA-750 and FSA-751 were previously
approved by the Office of Management and Budget (OMB) and assigned OMB
control number 0560-0151.
Regulatory Flexibility Act
The changes in this final rule are intended to reduce the reporting
burden for all affected businesses, including small businesses. Because
these changes will not have an adverse impact on a substantial number
of small businesses, a Regulatory Flexibility Assessment is not
required.
Background
This final rule amends the regulations at 7 CFR part 782 with
respect to the U.S. End-Use Certificate Program. Since February 27,
1995, the effective date for the implementation of the End-Use
Certificate Program, several items have been identified that could
improve the effectiveness and the efficiency of the End-Use Certificate
Program.
The final rule published on January 26, 1995, at 60 FR 5087, did
not include a specific time requirement for importers and subsequent
buyers to inform subsequent buyers or end users that wheat being
purchased is of Canadian origin and is therefore subject to these
regulations. In some instances, importers are delivering Canadian wheat
to subsequent buyers and end users through grain handlers. FSA has
found that this method of transporting Canadian wheat results in some
grain handlers acquiring title to a portion of the wheat, thus becoming
either a subsequent buyer or an end user. The general interpretation of
existing regulations by affected parties is that the importer or
subsequent buyer has 10 workdays to provide a copy of form FSA-750,
End-Use Certificate for Wheat, to the subsequent buyer or exporter,
which mirrors the requirement for submitting forms to KCCO. This delay
in notification has resulted in situations where importers and
subsequent buyers have either commingled Canadian wheat with U.S.
origin wheat or resold Canadian wheat before they were informed that
the wheat was of Canadian origin. Therefore, this rule amends the
regulations at 7 CFR part 782 to require importers and subsequent
buyers to provide immediate notification to purchasers and grain
handlers when wheat being sold is of Canadian origin.
Secondly, in an effort to simplify and expedite the receipt of
reports, this rule extends the time requirements for filing forms FSA-
750, End-Use Certificate for Wheat, and FSA-751, Wheat Consumption and
Resale Report, with KCCO from 10 workdays to 15 workdays following the
date of entry or resale, and incorporates provisions which will permit
the facsimile transmission and computer generation of required forms.
Summary of Comments
Two timely responses were received to the proposed rule published
in the Federal Register on November 14, 1995, (60 FR 57198). While the
two respondents generally supported the provisions contained in the
proposed rule, both provided additional comments and recommendations.
The first respondent did not support the proposed extension of the
filing deadline from 10 workdays to 15 workdays following the date of
entry or resale, while the second respondent recommended that the
filing deadlines be extended to 30 workdays following the date of entry
or resale. Many importers of Canadian-produced wheat have experienced
difficulty in meeting the 10 workday filing deadline. Because the
extension of filing deadlines from 10 workdays to 15 workdays following
the date of entry or resale will ease the reporting burden without
negatively impacting the effectiveness of the End-Use Certificate
Program, the filing deadlines have been extended from 10 workdays to 15
workdays following the date of entry or resale, as proposed.
The second respondent commented on five additional issues. Of these
issues, two were not responsive to the proposed rule, and therefore,
were not considered in the development of this final rule. The second
respondent recommended that FSA consider establishing and publishing a
specific policy concerning shrink. No specific policy has been
established to address the issue of shrink; each situation is
considered on a case-by-case basis to determine if the percentage of
commodity loss is reasonable based on the length of storage and the
number of times the wheat has been handled.
The second respondent also commented that forms FSA-750 and FSA-751
should be modified to reflect quantities in bushels rather than net
metric tons. When wheat is imported from Canada, the United States
Customs Service (Customs) agents at the border crossing collect
information concerning the quantity imported on a metric ton basis.
Customs then forwards this information to FSA for use in determining
compliance with the End-Use Certificate Program regulations. To be
consistent with the procedures used by Customs, this rule maintains the
requirement that quantities reported on forms FSA-750 and FSA-751 be on
a metric ton basis.
Finally, the second respondent requested that FSA consider amending
the regulations to permit importers to report Canadian wheat imports on
the basis of whole shipments or by contract quantities, rather than by
individual truck or rail car. In developing these regulations, FSA
worked closely with Customs to ensure that reporting requirements
established by FSA would be consistent with the reporting requirement
used by Customs. Because a portion of the information collected by
Customs is forwarded to FSA for use in determining whether importers
are complying with these regulations, the information collected by FSA
must be consistent with the information collected by Customs. For this
reason, the final rule maintains the requirement that quantities of
wheat imported from Canada must be reported on a ``per entry'' basis as
defined in this regulation.
List of Subjects in 7 CFR Part 782
Administrative practice and procedure, Reporting and recordkeeping
requirements, Wheat.
For the reasons set out in the preamble, 7 CFR part 782 is amended
as follows:
PART 782--END-USE CERTIFICATE PROGRAM
1. The authority citation for part 782 continues to read as
follows:
Authority: 19 U.S.C. 3391(f).
[[Page 32643]]
2. In part 782 all references to ``ASCS-750'' are revised to read
``FSA-750.''
3. In part 782 all references to ``ASCS-751'' are revised to read
``FSA-751.''
4. Section 782.2 is amended by adding the following definition in
alphabetical order:
Sec. 782.2 Definitions.
* * * * *
Grain handler means an entity other than the importer, exporter,
subsequent buyer, or end user that handles wheat on behalf of an
importer, exporter, subsequent buyer, or end user.
* * * * *
5. Section 782.4 is revised to read as follows:
Sec. 782.4 OMB control numbers assigned pursuant to the Paperwork
Reduction Act.
The information collection requirements in this part have been
approved by the Office of Management and Budget and assigned OMB
control number 0560-0151.
6. Section 782.12 is amended by:
A. Removing the number ``10'' in the first sentence of paragraph
(a) and adding the number ``15'' in its place,
B. Removing paragraph (a)(8),
C. Redesignating paragraphs (a)(9) and (a)(10) as paragraph (a)(8)
and (a)(9), respectively,
D. Redesignating paragraphs (b), (c), and (d) as paragraph (d),
(e), (f), respectively,
E. Adding new paragraphs (b) and (c) and revising newly
redesignated paragraph (e) to read as follows:
Sec. 782.12 Filing FSA-750, End-Use Certificate for Wheat.
* * * * *
(b) Importers may provide computer generated form FSA-750, provided
such computer generated forms:
(1) Are approved in advance by KCCO,
(2) Contain a KCCO-assigned serial number, and
(3) Contain all of the information required in paragraphs (a)(1)
through (a)(9).
(c) KCCO will accept form FSA-750 submitted through the following
methods:
(1) Mail service, including express mail,
(2) Facsimile machine, and
(3) Other electronic transmissions, provided such transmissions are
approved in advance by KCCO. The importer remains responsible for
ensuring that electronically transmitted forms are received in
accordance with paragraph (a).
* * * * *
(e) Distribution of form FSA-750 will be as follows:
(1) If form FSA-750 is submitted to KCCO in accordance with
paragraph (c)(1);
(i) The original shall be forwarded to Kansas City Commodity
Office, Warehouse License and Contract Division, P.O. Box 419205,
Kansas City, MO 64141-6205, by the importer,
(ii) One copy shall be retained by the importer.
(2) If form FSA-750 is submitted to KCCO in accordance with
paragraphs (c)(2) or (c)(3), the original form FSA-750 that is signed
and dated by the importer in accordance with paragraph (d) shall be
maintained by the importer,
(3) The importer shall provide a photocopy to the end user or, if
the wheat is purchased for purposes of resale, the subsequent buyer(s).
* * * * *
7. Section 782.13 is amended by:
A. Redesignating paragraphs (b) and (c) as paragraph (c) and (d),
respectively, and by removing the number ``10'' in the new paragraph
(d) and adding the number ``15'' in its place,
B. Adding paragraph (b) to read as follows:
Sec. 782.13 Importer responsibilities.
* * * * *
(b) Immediately notify each subsequent buyer, grain handler, or end
user that the wheat being purchased or handled originated in Canada and
may only be commingled with U.S.-produced wheat by the end user or when
loaded onto a conveyance for direct delivery to the end user or a
foreign country.
* * * * *
8. Section 782.15 is amended by:
A. Removing the number ``10'' in paragraph (a)(1) and adding the
number ``15'' in its place, and
B. Adding paragraphs (e), (f), and (g) to read as follows:
Sec. 782.15 Filing FSA-751, Wheat Consumption and Resale Report.
* * * * *
(e) Filers may provide computer generated form FSA-751, provided
such computer generated forms:
(1) Are approved in advance by KCCO, and
(2) Contain the information required in paragraphs (b)(1) through
(b)(9) of this section.
(f) KCCO will accept form FSA-751 submitted through the following
methods:
(1) Mail service, including express mail,
(2) Facsimile machine, and
(3) Other electronic transmissions, provided such transmissions are
approved in advance by KCCO. The importer, end user, exporter, or
subsequent buyer remains responsible for ensuring that electronically
transmitted forms are received in accordance with this section.
(g) Distribution of form FSA-751 will be as follows:
(1) If form FSA-751 is submitted to KCCO in accordance with
paragraph (f)(1) of this section:
(i) The original shall be forwarded to Kansas City Commodity
Office, Warehouse License and Contract Division, P.O. Box 419205,
Kansas City, MO 64141-6205, by the importer, end user, exporter, or
subsequent buyer.
(ii) One copy shall be retained by the importer, end user,
exporter, or subsequent buyer.
(2) If form FSA-751 is submitted to KCCO in accordance with
paragraphs (f)(2) or (f)(3) of this section, the original form FSA-751
shall be maintained by the importer, end user, exporter, or subsequent
buyer.
* * * * *
9. Section 782.17 is amended by:
A. Redesignating paragraph (b) as paragraph (c), and
B. Adding a new paragraph (b) to read as follows:
Sec. 782.17 Wheat purchased for resale.
* * * * *
(b) The importer or subsequent buyer shall immediately notify each
subsequent buyer, grain handler, exporter, or end user that the wheat
being purchased or handled originated in Canada and may only be
commingled with U.S.-produced wheat by the end user or when loaded onto
a conveyance for direct delivery to the end user or a foreign country.
* * * * *
Signed at Washington, DC, on June 14, 1996.
Grant Buntrock,
Administrator, Farm Service Agency.
[FR Doc. 96-15850 Filed 6-24-96; 8:45 am]
BILLING CODE 3410-05-P