[Federal Register Volume 62, Number 38 (Wednesday, February 26, 1997)]
[Proposed Rules]
[Pages 8639-8640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4772]


      
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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 62, No. 38 / Wednesday, February 26, 1997 / 
Proposed Rules  

[[Page 8639]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1230

[No. LS-97-001]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer 
Information Act (Act) of 1985 and the Pork Promotion, Research, and 
Consumer Information Order (Order) issued thereunder, this proposed 
rule would increase by eight-hundredths of a cent per pound the amount 
of the assessment per pound due on imported pork and pork products to 
reflect an increase in the 1996 five-market average price for domestic 
barrows and gilts. This proposed action would bring the equivalent 
market value of the live animals from which such imported pork and pork 
products were derived in line with the market values of domestic 
porcine animals. These proposed changes will facilitate the continued 
collection of assessments on imported porcine animals, pork, and pork 
products.

DATES: Comments must be received by March 28, 1997.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief; 
Marketing Programs Branch, STOP 0251; Livestock and Seed Division; 
Agricultural Marketing Service (AMS), USDA, Room 2606-S; P.O. Box 
96456; Washington, D.C. 20090-6456. Comments will be available for 
public inspection during regular business hours at the above office in 
Room 2606 South Building; 14th and Independence Avenue, SW.; 
Washington, D.C. 20090-6456.

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

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778 and Regulatory Flexibility Act

    This proposed rule has been determined not significant for purposes 
of Executive Order 12866 and therefore has not been reviewed by the 
Office of Management and Budget.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposal is not intended to have a 
retroactive effect. The Act states that the statute is intended to 
occupy the field of promotion and consumer education involving pork and 
pork products and of obtaining funds thereof from pork producers and 
that the regulation of such activity (other than a regulation or 
requirement relating to a matter of public health or the provision of 
State or local funds for such activity) that is in addition to or 
different from the Act may not be imposed by a State.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 1625 of the Act, a 
person subject to an order may file a petition with the Secretary 
stating that such order, a provision of such order or an obligation 
imposed in connection with such order is not in accordance with the 
law; and requesting a modification of the order or an exemption from 
the order. Such person is afforded the opportunity for a hearing on the 
petition. After the hearing, the Secretary would rule on the petition. 
The Act provides that the district court of the United States in the 
district in which person resides or does business has jurisdiction to 
review the Secretary's determination, if a complaint is filed not later 
than 20 days after the date such person receives notice of such 
determination.
    This action also was reviewed under the Regulatory Flexibility Act 
(RFA) (5 United States Code (U.S.C.) 601 et seq.). The effect of the 
Order upon small entities was discussed in the September 5, 1986, issue 
of the Federal Register (51 FR 31898), and it was determined that the 
Order would not have a significant effect upon a substantial number of 
small entities. Many of the estimated 200 importers may be classified 
as small entities under the Small Business Administration definition 
(13 CFR 121.601). This proposed rule would increase the amount of 
assessments on imported pork and pork products subject to assessment by 
eight-hundredths of a cent per pound, or as expressed in cents per 
kilogram, nineteen-hundredths of a cent per kilogram. This increase is 
consistent with the increase in the annual average price of domestic 
barrows and gilts for calendar year 1996. Adjusting the assessments on 
imported pork and pork products would result in an estimated increase 
in assessments of $310,000 over a 12-month period. Assessments 
collected for 1996 were $2,804,935. Accordingly, the Administrator of 
AMS has determined that this action would not have a significant 
economic impact on a substantial number of small entities.
    The Act (7 U.S.C. 4801-4819) approved December 23, 1985, authorized 
the establishment of a national pork promotion, research, and consumer 
information program. The program was funded by an initial assessment 
rate of 0.25 percent of the market value of all porcine animals 
marketed in the United States and an equivalent amount of assessment on 
imported porcine animals, pork, and pork products. However, that rate 
was increased to 0.35 percent in 1991 (56 FR 51635) and to 0.45 percent 
effective September 3, 1995 (60 FR 29963). The final Order establishing 
a pork promotion, research, and consumer information program was 
published in the September 5, 1986, issue of the Federal Register (51 
FR 31898; as corrected, at 51 FR 36383 and amended at 53 FR 1909, 53 FR 
30243, 56 FR 4, 56 FR 51635, and 60 FR 29963) and assessments began on 
November 1, 1986.
    The Order requires importers of porcine animals to pay U.S. Customs 
Service (USCS), upon importation, the assessment of 0.45 percent of the 
animal's declared value and importers of pork and pork products to pay 
USCS, upon importation, the assessment of 0.45 percent of the market 
value of the live porcine animals from which such pork and pork 
products were produced. This proposed rule would increase the 
assessments on all of the imported pork and pork products subject to 
assessment as published in the Federal Register as a final rule June 7, 
1995, and effective

[[Page 8640]]

on September 3, 1995; (60 FR 29965). This increase is consistent with 
the increase in the annual average price of domestic barrows and gilts 
for calendar year 1996 as reported by USDA, AMS, Livestock and Grain 
Market News (LGMN) Branch. This increase in assessments would make the 
equivalent market value of the live porcine animal from which the 
imported pork and pork products were derived reflect the recent 
increase in the market value of domestic porcine animals, thereby 
promoting comparability between importer and domestic assessments. This 
proposed rule would not change the current assessment rate of 0.45 
percent of the market value.
    The methodology for determining the per pound amounts for imported 
pork and pork products was described in the Supplementary Information 
accompanying the Order and published in the September 5, 1986, Federal 
Register at 51 FR 31901. The weight of imported pork and pork products 
is converted to a carcass weight equivalent by utilizing conversion 
factors which are published in the Department's Statistical Bulletin 
No. 697 ``Conversion Factors and Weights and Measures.'' These 
conversion factors take into account the removal of bone, weight lost 
in cooking or other processing, and the nonpork components of pork 
products. Secondly, the carcass weight equivalent is converted to a 
live animal equivalent weight by dividing the carcass weight equivalent 
by 70 percent, which is the average dressing percentage of porcine 
animals in the United States. Thirdly, the equivalent value of the live 
porcine animal is determined by multiplying the live animal equivalent 
weight by an annual average market price for barrows and gilts as 
reported by USDA, AMS, LGMN Branch. This average price is published on 
a yearly basis during the month of January in LGMN Branch's publication 
``Livestock, Meat, and Wool Weekly Summary and Statistics.'' Finally, 
the equivalent value is multiplied by the applicable assessment rate of 
0.45 percent due on imported pork and pork products. The end result is 
expressed in an amount per pound for each type of pork or pork product. 
To determine the amount per kilogram for pork and pork products subject 
to assessment under the Act and Order, the cent per pound assessments 
are multiplied by a metric conversion factor 2.2046 and carried to the 
sixth decimal.
    The formula in the preamble for the Order at 51 FR 31901 
contemplated that it would be necessary to recalculate the equivalent 
live animal value of imported pork and pork products to reflect changes 
in the annual average price of domestic barrows and gilts to maintain 
equity of assessments between domestic porcine animals and imported 
pork and pork products.
    The average annual market price increased from $41.99 in 1995 to 
$52.77 in 1996, an increase of about 25 percent. This increase would 
result in a corresponding increase in assessments for all HTS numbers 
listed in the table in Sec. 1230.110, 60 FR 29965; June 7, 1995, of an 
amount equal to eight-hundredths of a cent per pound, or as expressed 
in cents per kilogram, nineteen-hundredths of a cent per kilogram. 
Based on the most recent available Department of Commerce, Bureau of 
Census, data on the volume of imported pork and pork products available 
for the period January 1, 1995, through September 30, 1995, the 
proposed increase in assessment amounts would result in an estimated 
$310,000 increase in assessments over a 12-month period.

List of Subjects in 7 CFR Part 1230

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

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

PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION

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

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

    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.

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

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

------------------------------------------------------------------------
                                                       Assessment       
            Pork and pork products             -------------------------
                                                  Cents/lb     Cents/kg 
------------------------------------------------------------------------
0203.11.0000..................................          .34      .749564
0203.12.1010..................................          .34      .749564
0203.12.1020..................................          .34      .749564
0203.12.9010..................................          .34      .749564
0203.12.9020..................................          .34      .749564
0203.19.2010..................................          .39      .859794
0203.19.2090..................................          .39      .859794
0203.19.4010..................................          .34      .749564
0203.19.4090..................................          .34      .749564
0203.21.0000..................................          .34      .749564
0203.22.1000..................................          .34      .749564
0203.22.9000..................................          .34      .749564
0203.29.2000..................................          .39      .859794
0203.29.4000..................................          .34      .749564
0206.30.0000..................................          .34      .749564
0206.41.0000..................................          .34      .749564
0206.49.0000..................................          .34      .749564
0210.11.0010..................................          .34      .749564
0210.11.0020..................................          .34      .749564
0210.12.0020..................................          .34      .749564
0210.12.0040..................................          .34      .749564
0210.19.0010..................................          .39      .859794
0210.19.0090..................................          .39      .859794
1601.00.2010..................................          .47     1.036162
1601.00.2090..................................          .47     1.036162
1602.41.2020..................................          .51     1.124346
1602.41.2040..................................          .51     1.124346
1602.41.9000..................................          .34      .749564
1602.42.2020..................................          .51     1.124346
1602.42.2040..................................          .51     1.124346
1602.42.4000..................................          .34      .749564
1602.49.2000..................................          .47     1.036162
1602.49.4000..................................          .39      .859794
------------------------------------------------------------------------

    Dated: February 20, 1997.
Lon Hatamiya,
Administrator.
[FR Doc. 97-4772 Filed 2-25-97; 8:45 am]
BILLING CODE 3410-02-P