[Federal Register Volume 61, Number 164 (Thursday, August 22, 1996)]
[Rules and Regulations]
[Pages 43301-43305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21391]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 61, No. 164 / Thursday, August 22, 1996 / 
Rules and Regulations

[[Page 43301]]



DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 800

RIN 0580-AA40


Fees for Official Inspection and Official Weighing Services

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Final rule and Withdrawal of Interim final rule.

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

SUMMARY: The Federal Grain Inspection Service (FGIS), of the Grain 
Inspection, Packers and Stockyards Administration (GIPSA), is changing 
the way it collects user fees for official inspection and weighing 
services performed in the United States under the United States Grain 
Standards Act (USGSA), as amended. The new fee structure establishes 
fees for specific services using hourly rates and/or unit fees. This 
structure provides customers with information to better assess the cost 
of specific services, and allows FGIS to pass savings (in the form of 
fewer billable hours) to customers who invest in operational 
efficiencies. The new fee structure includes a 4 percent increase to 
recover salary increases.

EFFECTIVE DATE: October 1, 1996.

FOR FURTHER INFORMATION CONTACT: George Wollam, USDA, GIPSA, Room 0623 
South Building, STOP 3649, 1400 Independence Avenue, SW, Washington, DC 
20250-3649, or telephone (202) 720-0292.

SUPPLEMENTARY INFORMATION:

Executive Order 12866 and Regulatory Flexibility Act

    This 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.
    The change in the way user fees are collected provides customers 
with information to better assess the costs of specific inspection 
services because the fees will be more service specific than under the 
current hourly rate. Further, it allows savings to be passed on to 
users of the service who invest in operational efficiencies. Currently, 
applicants choose only those services they want, but individual service 
costs are supported by hourly rates without segregation. Fiscal year 
1993 financial and volume data were used in developing the new fee 
structure. While certain fees are increased and new fees are 
established, the revenue generated using fiscal year 1993 data is 
equivalent to the $23,192,178 collected that year.
    The new fee structure does include a 4 percent increase to recover 
salary increases since 1993, and would have generated sufficient 
revenue to cover costs for fiscal year 1994 and the costs for fiscal 
year 1995. For information, fiscal year 1994 revenues were $20,662,062 
with obligations of $21,415,400. For fiscal year 1995, revenues were 
$23,382,253 with obligations of $24,015,289, and for the first half of 
fiscal year 1996 revenues were $1,924,516 with obligations of 
$1,916,609. Obligations include buyout costs, along with costs 
associated with office consolidations.
    Presently, users of the inspection service are charged on an hourly 
basis. This hourly rate includes the salary and benefits for each 
service representative providing the service, as well as a portion of 
overhead and program support costs. The overall cost of a wide variety 
of services, e.g., grading, weighing, wheat protein measurement, 
soybean protein and oil measurement, and aflatoxin detection, are 
averaged together and recovered through an hourly service rate. Under 
the new system, customers will be charged a lower base hourly rate plus 
a unit fee to cover the cost of the specific service they request, such 
as wheat protein. Overhead and program costs will be recovered through 
a per-metric-ton volume fee assessed on all grain loaded from a 
facility.
    This rule may have an economic impact on infrequent users of the 
service. FGIS incurs difficulty balancing costs and revenue in some 
locations where customers desire local FGIS service capacity but use 
the service infrequently. The new fee schedule is designed to shift the 
cost of non-revenue producing time to those users responsible for 
incurring it. Consequently, infrequent users of the service may find 
the net effect of the new hourly fees and per-metric-ton administrative 
fee increases their total per-metric-ton cost for inspection service. 
Conversely, highly efficient and/or high-volume users of the service 
may realize a decrease in their per-metric-ton cost for inspection 
service due to the reduced contract hourly rate and the use of an 
administrative fee to cover overhead and program support expenses.
    Most users of the official inspection and weighing services do not 
meet the requirements for small entities. Further, FGIS is required by 
statute to make services available and to recover costs of providing 
such services as nearly as practicable. Therefore, James R. Baker, 
Administrator, GIPSA, has determined that this final rule does not have 
a significant economic impact on a substantial number of small entities 
as defined in the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

Executive Order 12778

    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This action does not have a retroactive effect. 
The USGSA provides in Sec. 87g that no subdivision may require or 
impose any requirements or restrictions concerning the inspection, 
weighing, or description of grain under the Act. Otherwise, this final 
rule does not preempt any State or local laws, regulations, or policies 
unless they present irreconcilable conflict with this rule. There are 
no administrative procedures which must be exhausted prior to any 
judicial challenge to provisions of this rule.

Information Collection and Recordkeeping Requirements

    In compliance with the Paperwork Reduction Act (44 U.S.C. Chapter 
3504), the previously approved information collection and recordkeeping 
requirements concerning applications for inspection and weighing 
services have been approved by the Office of Management and Budget 
under control number 0580-0013.

[[Page 43302]]

Background

    On November 30, 1995, FGIS proposed in the Federal Register (60 FR 
61499) to change the way it collects user fees for official inspection 
and weighing services performed under the USGSA.
    The USGSA fees for inspection and weighing services were last 
increased and became effective on May 20, 1991 (56 FR 15803). 
Currently, they appear in 7 CFR Sec. 800.71, Schedule A, Fees for 
Official Inspection, Weighing, and Appeal Inspection Services Performed 
in the United States.
    FGIS is revising Sec. 800.71, Schedule A--Fees for Official 
Inspection, Weighing, and Appeal Inspection Services Performed in the 
United States. Instead of one schedule covering all services, there are 
now three new tables. The new tables are: Table 1, ``Fees for Official 
Services Performed at an Applicant's Facility in an Onsite FGIS 
Laboratory;'' Table 2, ``Services Performed at Other Than an 
Applicant's Facility in an FGIS Laboratory;'' and Table 3, 
``Miscellaneous Services.''
    Schedule A, Table 1. This table covers all services performed 
onsite at an applicant's facility and continues the existing provision 
for using contract and noncontract hourly rates. The hourly rates are 
calculated to include only those costs directly related to labor and do 
not include overhead. The current 1 year contract is retained, but 
provisions are included for 3- and 6-month contracts. FGIS will 
evaluate the use of 3- and 6-month contracts after 1-year to determine 
if they shall be continued. The rate differences between 1-year, 6-
month, and 3-month contracts reflect the costs associated with 
increased staff production under a contract.
1. Hourly Rates
    The new hourly rates are divided into four categories related to 
how FGIS employees are paid: regular time (6 a.m. to 6 p.m.), 10 
percent night differential (6 p.m. to 6 a.m.), overtime at 1\1/2\ the 
regular hourly rate (for applicant-caused or requested overtime), and 
holiday rates at double the regular hourly rate (all hourly rates other 
than those of regular time are calculated using only the average base 
hourly rate; this does not include personnel benefits).
2. Additional Tests
    Additional unit fees for certain tests such as Aflatoxin, 
Vomitoxin, Soybean protein and/or oil, Sunflower oil, Wheat protein, 
Waxy corn, and Class Y weighing are implemented. These fees will 
recover additional costs incurred such as testing materials, equipment, 
and hazardous waste disposal which are not recovered through the hourly 
fee or administrative fee.
3. Administrative Fee
    A per-metric-ton administrative charge is implemented to recover 
the indirect costs of FGIS field offices and headquarters such as the 
salaries and benefits for office management and support staff, and 
rent. This charge is assessed on all outbound grain inspected and/or 
weighed at an applicant's facility. Six levels of fees are implemented 
ranging from 1 metric ton or less to over 7,000,001 metric tons with 
fees decreasing as the number of metric tons inspected increases. The 
charge is assessed in addition to the base hourly rate. At the 
beginning of each fiscal year (October 1), all applicants pay the same 
per-metric-ton fee. Once a level has been reached, the fee for 
additional metric tons is reduced until the maximum volume level is 
reached. Inspections performed on grain that cannot be captured as part 
of the metric ton charge has a unit fee assessed in addition to the 
hourly rate to recover overhead costs. Inspections such as submitted 
samples, factor only, and sacked grain are included.
    Schedule A, Table 2, covers fees for inspection and weighing 
services where FGIS does not have an onsite laboratory at an 
applicant's facility. The fees in this table are a mixture of hourly 
rates and unit fees. They cover a vast array of specific services 
presently provided under the current hourly rates. The hourly rates 
applied in Table 2 are the appropriate rates from Table 1, unless 
specific hourly rates are identified. Unit fees cover the time required 
to perform the service plus a portion for overhead. The types of 
service provided under these fees include inspection for grade and 
factor for specific carriers probe sampled or sampled online, 
additional services and testing (i.e., individual tests), Board appeals 
and appeals, weighing (Class X and Y), and stowage examinations.
    Schedule A, Table 3, provides fees to cover a variety of services 
not included in the previous tables. As with Table 2, the change in the 
fee structure from an hourly fee that recovers all costs to a service-
specific fee structure requires a listing of specific services 
currently funded by the hourly rate. These service-specific fees are a 
mixture of hourly rates and unit fees and apply to Grain Grading 
Seminars, Certification of Diverter Samplers, Special Services, Scale 
Testing and Certification, Evaluation of Weighing and Material Handling 
Systems, National Type Evaluation Program (NTEP) Prototype Evaluation 
(this hourly rate applies to scales, moisture meters and NIR 
analyzers), NTEP Prototype Evaluation of Railroad Track Scales, Mass 
Standards Calibration and Reverification, Special Projects, Foreign 
Travel, Online Customized Data Export Grain Information System (EGIS) 
Service, Samples Provided to Interested Parties, Divided-Lot 
Certificates, Extra Copies of Certificates, Faxing, Special Mailing, 
and Preparing Certificates Onsite.
    Further, FGIS is establishing a unit fee to recover expenses 
incurred when FGIS employees are requested to provide consulting 
services outside the United States. Currently, there is no fee for 
recovering costs of salary, travel, per diem, and related costs which 
is not related to an official service provided on a shipment of grain 
at the time of export from the United States. For example, an exporter 
may ask for an FGIS microbiologist to consult with microbiologists in 
an importing country to resolve adispute on the presence of grain 
fungi; or a USDA cooperator may request an FGIS inspector to conduct 
training for inspectors in an importing country.
    FGIS is also changing Secs. 800.72 and 800.73 of the regulations to 
further clarify the application of fees covered in Schedule A. 
Specifically, service provided under Schedule A covers service provided 
within 25 miles of the employee's assigned duty point. Travel, per 
diem, and other related costs are assessed for providing service beyond 
the 25-mile limit. A minimum fee is established for services identified 
in Table 2 performed outside of normal business hours Monday through 
Friday.

Comment Review

    FGIS received four comments during the 60-day comment period. Two 
comments were from grain handling trade associations, one from a State, 
and one from a steamship association. Both comments from the grain 
handling trade associations were generally supportive of the proposed 
rule; however, one commented that under the current hourly fees FGIS 
field office managers are encouraged to assign more employees to a 
shift than may be prudent. The commentor went on to say that the 
proposed fee structure does promote a more fair allocation of costs, 
but does not go far enough to reduce direct labor costs through job 
consolidation or by assigning supervisory personnel collateral duty for 
performing additional tests in those situations where the shift 
supervisor or journeyman grader are qualified or capable of doing the 
additional test.

[[Page 43303]]

    FGIS does not agree that its field office managers are over 
staffing shifts under the current hourly fees. FGIS further believes 
that direct labor costs will be reduced through the new lower hourly 
rate fee structure which includes a lower hourly rate for online 
supervisory personnel and the recovery of overhead through a per-
metric-ton administrative fee. FGIS does utilize its inspection 
personnel to their maximum potential.
    The comment from the State was entirely supportive and encouraged 
FGIS to adopt a unit fee for direct services provided to the industry 
with minimum hourly rates.
    The comment from the steamship association requested that FGIS 
maintain the current hourly rate with a small increase, that FGIS 
increase the number of hours and personnel available for stowage 
examinations, and that stowage examinations and stowage re-examinations 
will cost more to the steamship line if the inspections are done in 
different parts of the country.
    FGIS has determined that changing the way it collects fees from an 
hourly rate to a combination of reduced hourly rates and unit fees is 
the most equitable way to recover its costs and provide the grain 
industry quality service. FGIS agrees re-examining ship holds will cost 
more to the steamship line if the inspections are done in different 
parts of the country. Therefore, FGIS is modifying the provisions for 
charging for stowage examinations when the initial examination was 
performed at a different port. FGIS will not charge the minimum fee and 
will charge the per hold charge if the ship has moved from one port to 
another.
    While the comment concerning FGIS increasing the hours and 
personnel available for inspection is not within the scope of this 
rulemaking, we do note that stowage examination is conducted generally 
during daylight hours.

Withdrawal of Interim Final Rule

    On January 8, 1993 (58 FR 3213), FGIS published an interim rule, 
which would have implemented fee increases for official inspection and 
weighing services, effective February 1, 1993. On January 21, 1993, 
FGIS published in the Federal Register, a document indefinitely 
postponing the fee increase. This action withdraws the interim final 
rule published at 58 FR 3213.

October 1, 1996, Effective Date

    The changes to the fee schedules made in this final rule are 
effective October 1, 1996. That date corresponds to the beginning of 
the 1997 fiscal year and the start of a new accounting cycle.

List of Subjects in 7 CFR Part 800

    Administrative practice and procedure; Grain.

    For the reasons set out in the preamble, 7 CFR Part 800 is amended 
as follows:

PART 800--GENERAL REGULATIONS

    1. The authority citation for Part 800 continues to read as 
follows:

    Authority: Pub. L. 94-582, 90 Stat. 2867, as amended (7 U.S.C. 
71 et seq.)

    2. Section 800.71 is amended by revising Schedule A to read as 
follows:


Sec. 800.71  Fees assessed by the Service.

    (a) * * *
Schedule A.--Fees for Official Inspection and Weighing Services 
Performed in the United States

   Table 1.--Fees for Official Services Performed at an Applicant's Facility in an Onsite FGIS Laboratory \1\   
----------------------------------------------------------------------------------------------------------------
                                                               Monday to    Monday to                           
                                                               Friday  (6   Friday  (6   Saturday,              
                                                               a.m. to  6   p.m. to  6  Sunday, and    Holidays 
                                                                 p.m.)        a.m.)       Overtime              
--------------------------------------------------------------------------------------------\2\-----------------
                 (1) Inspection and Weighing Services Hourly Rates (per service representative)                 
                                                                                                                
----------------------------------------------------------------------------------------------------------------
1-year contract.............................................       $23.00       $24.80       $32.40       $39.00
6-month contract............................................        25.00        26.80        34.40        43.60
3-month contract............................................        28.00        29.80        37.40        46.60
Noncontract.................................................        33.00        35.00        42.80        52.60
----------------------------------------------------------------------------------------------------------------


 (2) Additional Tests (cost per test, assessed in addition to the hourly
                                rate) \3\                               
------------------------------------------------------------------------
(i) Aflatoxin (other than Thin Layer Chromatography)...........    $8.50
(ii) Aflatoxin (Thin Layer Chromatography method)..............    20.00
(iii) Soybean protein and oil (one or both)....................     1.50
(iv) Wheat protein (per test)..................................     1.50
(v) Sunflower oil (per test)...................................     1.50
(vi) Vomitoxin (qualitative)...................................     7.50
(vii) Vomitoxin (quantitative).................................    12.50
(viii) Waxy corn (per test)....................................     1.50
(ix) Fees for other tests not listed above will be based on the         
 lowest noncontract hourly rate.                                        
(x) Other services                                                      
    (a) Class Y Weighing (per carrier).........................         
        (1) Truck/container....................................      .30
        (2) Railcar............................................     1.25
        (3) Barge..............................................     2.50
------------------------------------------------------------------------
  (3) Administrative Fee (assessed in addition to all other applicable  
 fees, only one administrative fee will be assessed when inspection and 
          weighing services are performed on the same carrier).         
------------------------------------------------------------------------
(i) All outbound carriers (per-metric-ton) \4\                          
    (a) 1-1,000,000............................................   $0.090
    (b) 1,000,001-1,500,000....................................    0.082
    (c) 1,500,001-2,000,000....................................    0.042
    (d) 2,000,001-5,000,000....................................    0.032
    (e) 5,000,001-7,000,000....................................    0.017

[[Page 43304]]

                                                                        
    (f) 7,000,001-.............................................    0.002
(ii) Additional services (assessed in addition to all other             
 fees) \3\                                                              
    (a) Submitted sample (per sample-grade and factor).........     1.50
    (b) Submitted sample--Factor only (per factor).............    0.70 
\1\ Fees apply for original inspection and weighing, reinspection, and  
  appeal inspection service include, but are not limited to, sampling,  
  grading, weighing, prior to loading stowage examinations, and         
  certifying results performed within 25 miles of an employee's assigned
  duty station. Travel and related expenses will be charged for service 
  outside 25 miles as found in Sec.  800.72(a).                         
\2\ Overtime rates will be assessed for all hours in excess of 8        
  consecutive hours that result from an applicant scheduling or         
  requesting service beyond 8 hours, or if requests for additional      
  shifts exceed existing staffing.                                      
\3\ Appeal and reinspection services will be assessed the same fee as   
  the original inspection service.                                      
\4\ The administrative fee is assessed on an accumulated basis beginning
  at the start of the Service's fiscal year (October 1 each year).      



Table 2.--Services Performed at Other Than an Applicant's Facility in an
                         FGIS Laboratory \1\ \2\                        
(1) Original Inspection and Weighing (Class X) Services                 
  (i) Sampling only (use hourly rates from Table 1)                     
  (ii) Stationary lots (sampling, grade/factor, and                     
   checkloading)                                                        
      (a) Truck/trailer/container (per carrier)..............     $17.60
      (b) Railcar (per carrier)..............................     $27.00
      (c) Barge (per carrier)................................    $173.60
      (d) Sacked grain (per hour per service representative             
       plus an administrative fee per hundredweight) (CWT)...      $0.02
  (iii) Lots sampled online during loading (sampling charge             
   under (i) above plus)                                                
      (a) Truck/trailer container (per carrier)..............      $9.40
      (b) Railcar (per carrier)..............................     $18.80
      (c) Barge (per carrier)................................    $107.60
      (d) Sacked grain (per hour per service representative             
       plus an administrative fee per hundredweight) (CWT)...      $0.02
  (iv) Other services                                                   
      (a) Submitted sample (per sample--grade and factor)....     $10.00
      (b) Warehouseman inspection (per sample)...............     $17.00
      (c) Factor only (per factor--maximum 2 factors)........      $4.10
      (d) Checkloading/condition examination (use hourly                
       rates from Table 1, plus an administrative fee per               
       hundredweight if not previously assessed) (CWT).......      $0.02
      (e) Reinspection (grade and factor only. Sampling                 
       service additional, item (i) above....................     $11.00
      (f) Class X Weighing (per hour per service                        
       representative).......................................     $43.60
  (v) Additional tests (excludes sampling)                              
      (a) Aflatoxin (per test--other than TLC method)........     $25.00
      (b) Aflatoxin (per test--TLC method)...................    $100.50
      (c) Soybean protein and oil (one or both)..............      $7.80
      (d) Wheat protein (per test)...........................      $7.80
      (e) Sunflower oil (per test)...........................      $7.80
      (f) Vomitoxin (qualitative)............................     $25.00
      (g) Vomitoxin (quantitative)...........................     $30.00
      (h) Waxy corn (per test)...............................      $9.00
      (i) Canola (per test--00 dip test)                           $9.00
      (j) Pesticide Residue Testing \3\                                 
        (1) Routine Compounds (per sample)...................    $200.00
        (2) Special Compounds (per service representative)...    $100.00
  (k) Fees for other tests not listed above will be based on            
   the lowest noncontract hourly rate from Table 1.                     
(2) Appeal inspection and review of weighing service.\4\                
  (i) Board Appeals and Appeals (grade and factor)...........     $74.60
      (a) Factor only (per factor--max 2 factors)............     $38.00
      (b) Sampling service for Appeals additional (hourly               
       rates from Table 1)...................................           
  (ii) Additional tests (assessed in addition to all other              
   applicable fees)                                                     
      (a) Aflatoxin (per test, other than TLC)...............     $25.00
      (b) Aflatoxin (TLC)....................................    $110.00
      (c) Soybean protein and oil (one or both)..............     $15.30
      (d) Wheat protein (per test)...........................     $15.30
      (e) Sunflower oil (per test)...........................     $15.30
      (f) Vomitoxin (per test--qualitative)..................     $35.00
      (g) Vomitoxin (per test--quantitative).................     $40.00
      (h) Vomitoxin (per test--HPLC Board Appeal)............    $125.70
  (i) Pesticide Residue Testing \3\..........................           
      (1) Routine Compounds (per sample).....................    $200.00
      (2) Special Compounds (per service representative).....    $100.00
      (j) Fees for other tests not listed above will be based           
       on the lowest noncontract hourly rate from Table 1.              
  (iii) Review of weighing (per hour per service                        
   representative)...........................................     $63.50
(3) Stowage examination (service-on- request)\3\                        
  (i) Ship (per stowage space) (minimum $250 per ship).......     $50.00
  (ii) Subsequent ship examinations (same as original)\5\               
   (minimum $150 per ship)                                              
      (iii) Barge (per examination)..........................     $40.00
      (iv) All other carriers (per examination)..............     $15.00
                                                                        
\1\ Fees apply for original inspection and weighing, reinspection, and  
 appeal inspection service include, but are not limited to, sampling,   
 grading, weighing, prior to loading stowage examinations, and          
 certifying results performed within 25 miles of an employee's assigned 
 duty station. Travel and related expenses will be charged for service  
 outside 25 miles are found in Sec.  800.72 (a).                        
\2\ An additional charge will be assessed when the revenue from the     
 services in Schedule A, Table 2, does not cover what would have been   
 collected at the applicable hourly rate as provided in Sec.  800.72    
 (b).                                                                   
\3\ If performed outside of normal business, 1\1/2\ times the applicable
 unit fee will be charged.                                              
\4\ If, at the request of the Service, a file sample is located and     
 forwarded by the Agency for an official appeal, the Agency may, upon   
 request, be reimbursed at the rate of $2.50 per sample by the Service. 
\5\ If a ship has had, and passed, a stowage examination at one port    
 location but not loaded all holds examined, then moved to another port,
 the subsequent stowage examination shall charged the minimum hold fee  
 but only the per hold unit charge.                                     
                                                                        


                  Table 3.--Miscellaneous Services \1\                  
(1) Grain grading seminars (per hour per service                        
 representative).............................................     $43.60

[[Page 43305]]

                                                                        
(2) Certification of diverter-type mechanical samplers (per             
 hour per service representative)............................     $43.60
(3) Special services (per hour per service representative):..           
    (i) Scale testing and certification......................     $43.60
    (ii) Evaluation of weighing and material handling systems     $43.60
    (iii) NTEP Prototype evaluation (other than Railroad                
     Track Scales)...........................................     $43.60
    (iv) NTEP Prototype evaluation of Railroad Track Scales             
     (usage fee per day for test car)........................    $100.00
    (v) Mass standards calibration and reverification........     $43.60
    (vi) Special projects....................................     $43.60
(4) Foreign travel (per day per service representative)......    $416.00
(5) Online customized data EGIS service                                 
    (i) One data file per week for 1 year....................    $500.00
    (ii) One data file per month for 1 year..................    $300.00
(6) Samples provided to interested parties (per sample)......      $2.50
(7) Divided-lot certificates (per certificate)...............      $1.50
(8) Extra copies of certificates (per certificate)...........      $1.50
(9) Faxing (per page)........................................      $1.50
(10) Special mailing (actual cost)...........................           
(11) Preparing certificates onsite or during other than                 
 normal business hours (use hourly rates from Table 1).                 
                                                                        
\1\ Any requested service that is not listed will be performed at the   
 applicable noncontract hourly rate.                                    
\2\ Regular business hours-Monday thru Friday- service provided at other
 than regular hours charged at the applicable overtime hourly rate.     
                                                                        
                  *        *        *        *        *                 
                                                                        


    3. Section 800.72 is revised to read as follows:


Sec. 800.72  Explanation of additional service fees for services 
performed in the United States only.

    (a) When transportation of the service representative to the 
service location (at other than a specified duty point) is more than 25 
miles from an FGIS office, the actual transportation cost in addition 
to the applicable hourly rate for each service representative will be 
assessed from the FGIS office to the service point and return. When 
commercial modes of transportation (e.g., airplanes) are required, the 
actual expense incurred for the round-trip travel will be assessed. 
When services are provided to more than one applicant, the travel and 
other related charges will be prorated between applicants.
    (b) In addition to a 2-hour minimum charge for service on 
Saturdays, Sundays, and holidays, an additional charge will be assessed 
when the revenue from the services in Sec. 800.71, Schedule A, Table 2, 
does not equal or exceed what would have been collected at the 
applicable hourly rate. The additional charge will be the difference 
between the actual unit fee revenue and the hourly fee revenue. Hours 
accrued for travel and standby time shall apply in determining the 
hours for the minimum fee.
    4. Section 800.73 is revised to read as follows:


Sec. 800.73  Computation and payment of service fees; general fee 
information.

    (a) Computing hourly rates. The applicable hourly rate will be 
assessed in quarter hour increments for:
    (1) Travel from the FGIS field office or assigned duty station to 
the service point and return;
    (2) The performance of the requested service, less mealtime.
    (b) Application of fees when service is delayed or dismissed by the 
applicant. The applicable hourly rate will be assessed for the entire 
period of scheduled service when:
    (1) Service has been requested at a specified location;
    (2) A service representative is on duty and ready to provide 
service but is unable to do so because of a delay not caused by the 
Service; and
    (3 FGIS officials determine that the service representative cannot 
be utilized to provide service elsewhere without cost to the Service.
    (c) Application of fees when an application for service is 
withdrawn or dismissed. The applicable hourly rate will be assessed to 
the applicant for the entire period of scheduled service if the request 
is withdrawn or dismissed after the service representative departs for 
the service point, or if the service request is not canceled by 2 p.m., 
local time, the business day preceding the date of scheduled service. 
However, the applicable hourly rate will not be assessed to the 
applicant if FGIS officials determine that the service representative 
can be utilized elsewhere or released without cost to the Service.
    (d) To whom fees are assessed. Fees for inspection, weighing, and 
related services performed by service representatives, including 
additional fees as provided in Sec. 800.72, shall be assessed to and 
paid by the applicant for the service.
    (e) Monthly payment of administrative fee. At the option of the 
applicant, an agreement for 12 equal monthly payments may be entered 
into for payment of the administrative fee. These monthly payments will 
be based on the previous fiscal year's volume applied to the current 
year's administrative fee schedule. If the volume of grain inspected is 
more than the amount of grain agreed upon at the beginning of the 
fiscal year, at the point the agreed upon volume is exceeded, the 
current year's administrative fee schedule shall apply to the remaining 
amount of grain for the rest of the fiscal year. If the volume of grain 
inspected is less than the agreed upon amount, any excess monies paid 
to the Service shall be applied to the next fiscal year's 
administrative fee unless a request for a refund is made by the 
applicant.
    (f) Advance payment. As necessary, the Administrator may require 
that fees shall be paid in advance of the performance of the requested 
service. Any fees paid in excess of the amount due shall be used to 
offset future billings, unless a request for a refund is made by the 
applicant.
    (g) Form of payment. Bills for fees assessed under the regulations 
in this part for official services performed by FGIS shall be paid by 
check, draft, or money order, payable to the U.S. Department of 
Agriculture, Grain Inspection, Packers and Stockyards Administration.

    Dated: August 16, 1996.
Shirley Watkins,
Acting Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-21391 Filed 8-21-96; 8:45 am]
BILLING CODE 3410-EN-P