[Federal Register Volume 62, Number 92 (Tuesday, May 13, 1997)]
[Proposed Rules]
[Pages 26252-26255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12435]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 800

RIN 0580-AA52


Fees for Official Inspection and Official Weighing Services

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

ACTION: Proposed rule.

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SUMMARY: The Federal Grain Inspection Service (FGIS) of the Grain 
Inspection, Packers and Stockyards Administration (GIPSA) is proposing 
an approximate 3 percent increase in certain of its service fees for 
official inspection and weighing services performed in the United 
States under the United States Grain Standards Act (USGSA), as amended. 
The proposed increase covers hourly rates and certain unit rates on 
tests performed at other than an applicant's facility. The proposed 
increase is designed to generate additional revenue required to recover 
operational costs created by mandated cost-of-living increases to 
Federal salaries in fiscal year 1997.

DATE: Written comments must be submitted on or before May 28, 1997.

ADDRESSES: Written comments must be submitted to George Wollam, USDA, 
GIPSA, ART, Stop 3649, Washington, D.C. 20250-3649, or FAX them to 
(202) 720-4628. All comments received will be made available for public 
inspection during regular business hours in Room 0623, South Building, 
USDA, 1400 Independence Avenue, SW, Washington, D.C. 20250-3649 (7 CFR 
1.27 (b)). Comments may also be sent by electronic mail or Internet to: 
[email protected].

FOR FURTHER INFORMATION CONTACT: George Wollam at above address or 
telephone (202) 720-0292.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be nonsignificant for the purpose 
of Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This action is not intended to 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 
proposed rule will not preempt any State or local laws, regulations, or 
policies unless they present irreconcilable conflict with this proposed 
rule. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to provisions of this proposed rule.

Effects on Small Entities

    James R. Baker, Administrator, GIPSA, has determined that this 
proposed rule will 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.). Most users of the official 
inspection and weighing services do not meet the requirements for small 
entities. FGIS is required by statute to make services available and to 
recover costs of providing such services, as nearly as practicable.
    The proposed fee revision is primarily applicable to entities 
engaged in the export of grain. Under provisions of the USGSA, most 
grain exported from U.S. export port locations must be officially 
inspected and weighed. Mandatory inspection and weighing services are 
provided by FGIS on a fee basis at 37 export facilities. All of the 
export facilities are owned and managed by multi-national corporations, 
large cooperatives, or public entities that do not meet the criteria 
for small entities as defined under the Regulatory Flexibility Act and 
the regulations issued thereunder. Some users of the service who 
request non-mandatory official inspection and weighing services at 
other than export locations could be considered small entities. 
However, this fee increase merely reflects the cost-of-living increases 
in Federal salaries for hourly and certain unit fees. The approximate 
3-percent proposed increase in fees would not have a significant impact 
on either small or large entities. Additional revenue estimated for 
fiscal year 1997 are projected to be $218,100 for a total of $22.218 
million in revenue projected for fiscal year 1997.

Information Collection and Recordkeeping Requirements

    In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the previously approved information collection and 
recordkeeping requirements have been approved by the Office of 
Management and Budget under control number 0580-0013.

Background

    The USGSA requires FGIS to charge and collect reasonable fees for 
performing official inspection and weighing services. The fees are to 
cover, as nearly as practicable, FGIS' costs for performing these 
services, including related administrative and supervisory costs.
    The proposed approximate 3-percent increase in fees is designed to 
generate additional revenue required to recover operational costs 
created by mandated cost-of-living increases to Federal salaries for 
GIPSA employees in fiscal year 1997. The average salary increase for 
GIPSA employees in fiscal year 1997 is approximately 3 percent. The 
proposed action is being taken immediately to increase fiscal year 1997 
revenue to cover, in part, projected fiscal year 1997 operational 
costs.
    The current USGSA fees and were published in the Federal Register 
on August 22, 1996 (61 FR 43301), and became effective on October 1, 
1996. They will appear in the 1997 edition of 7 CFR 800.71, Schedule A, 
Fees for Official Inspection and Weighing Services Performed in the 
United States. The current fee schedule is projected to

[[Page 26253]]

generate approximately $22 million revenue for fiscal year 1997. This 
revenue is insufficient to recover operating expenses in fiscal year 
1997. This is 5.2 percent below estimated fiscal year 1997 costs of 
$23.2 million. Similar losses have occurred over the past 3 years with 
$753,000 in fiscal year 1994; $630,000 in fiscal year 1995; and 
$1,273,000 in fiscal year 1996. These losses resulted in a retained 
earnings balance of only $922,000 at the beginning of fiscal year 1997, 
significantly below a desired 3-month operating reserve of $6 million. 
With the fee increase, it is estimated that $218,100 in additional 
revenue will be generated for fiscal year 1997. Total costs for fiscal 
year 1997 are projected to be $23.2 million and revenues with the fee 
increase for the last period of fiscal year 1997 are projected to be 
$22.218 million.
    A further adjustment of fees, including an adjustment to the per 
metric ton administrative fee to recover the indirect costs of field 
offices and headquarters and replenish the operating reserve, is being 
considered and would be addressed in future rulemaking.
    A 15-day comment period is deemed appropriate because projected 
exports and the associated requests for official services for such 
grain are projected to decrease in the coming months due to seasonal 
and other adjustments. Accordingly, given the current level of the 
operating reserve, it would be necessary to implement any fee increase 
that may result from this rulemaking as soon as possible.

Proposed Action

    GIPSA proposes to apply an approximate 3-percent increase to those 
hourly and certain unit rates in 7 CFR 800.71, 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.
    In reviewing the fee schedule to identify these fees that would 
require a 3-percent increase, FGIS has identified several fees that 
under the current fee schedule are at levels that would not require any 
change. Accordingly, these fees would remain the same at this time.

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 proposed 
to be revised 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 revised 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       Saturday,                  
                                                   Friday (6 a.m  Friday (6 p.m.    Sunday, and      Holidays   
                                                    to 6 p.m.)      to 6 a.m.)     Overtime \2\                 
----------------------------------------------------------------------------------------------------------------
                 (1) Inspection and Weighing Services Hourly Rates (per service representative)                 
----------------------------------------------------------------------------------------------------------------
1-year contract.................................          $23.80          $25.60          $33.40          $40.20
6-month contract................................           25.80           27.60           35.40           46.20
3-month contract................................           29.60           30.80           38.60           48.00
Noncontract.....................................           34.00           36.00           44.20           54.20
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                (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
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  (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)               
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    (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
        (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

[[Page 26254]]

                                                                                                                
        (b) Submitted sample--Factor only (per                                                                  
         factor)................................  ..............  ..............  ..............           0.70 
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\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, &                     
     checkloading):                                                     
        (a) Truck/trailer/container (per carrier).......          $17.80
        (b) Railcar (per carrier).......................           27.25
        (c) Barge (per carrier).........................          174.00
        (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).......            9.75
        (b) Railcar (per carrier).......................           19.00
        (c) Barge (per carrier).........................          108.00
        (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)........................................           10.25
        (b) Warehouseman inspection (per sample)........           17.25
        (c) Factor only (per factor--maximum 2 factors).            4.20
        (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)...           11.25
        (f) Class X Weighing (per hour per service                      
         representative)................................           45.00
    (v) Additional tests (excludes sampling):                           
        (a) Aflatoxin (per test--other than TLC method).           25.25
        (b) Aflatoxin (per test--TLC method)............          100.75
        (c) Soybean protein and oil (one or both).......            7.85
        (d) Wheat protein (per test)....................            7.85
        (e) Sunflower oil (per test)....................            7.85
        (f) Vomitoxin (qualitative).....................           25.25
        (g) Vomitoxin (quantitative)....................           30.25
        (h) Waxy corn (per test)........................            9.10
        (i) Canola (per test--00 dip test)..............            9.10
        (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)....           74.85
        (a) Factor only (per factor--max 2 factors)$....           38.25
        (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)........           25.25
        (b) Aflatoxin (TLC).............................          110.30
        (c) Soybean protein and oil (one or both).......           15.45
        (d) Wheat protein (per test)....................           15.45
        (e) Sunflower oil (per test)....................           15.45
        (f) Vomitoxin (per test--qualitative)...........           35.25
        (g) Vomitoxin (per test--quantitative)..........           40.25
        (h) Vomitoxin (per test--HPLC Board Appeal).....          126.00
        (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)....................................           65.40
(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)                
     (minimum $150 per ship)............................                
    (iii) Barge (per examination).......................           40.00

[[Page 26255]]

                                                                        
    (iv) All other carriers (per examination)...........           15.00
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\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\ 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(2).                                                            
\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 agency, the Agency may, upon  
  request, be reimbursed at the rate of $2.50 per sample by the Service.


                   Table 3.--Miscellaneous Services 1                   
                                                                        
                                                                        
(1) Grain grading seminars (per hour per $45.00 service                 
 representative) \2\....................................          $45.00
(2) Certification of diverter-type mechanical samplers                  
 (per hour per service representative) \2\..............           45.00
(3) Special weighing services (per hour per service                     
 representative) \2\                                                    
    (i) Scale testing and certification.................           45.00
    (ii) Evaluation of weighing and material handling                   
     systems............................................           45.00
    (iii) NTEP Prototype evaluation (other than Railroad                
     Track Scales)......................................           45.00
    (iv) NTEP Prototype evaluation of Railroad Track....           45.00
        Scales (plus usage fee per day for test car)....          100.00
    (v) Mass standards calibration and reverification...           45.00
    (vi) Special projects...............................           45.00
(4) Foreign travel (per day per service representative).          420.00
(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 $45.00
  per hour.                                                             
\2\ Regular business hours--Monday thru Friday--service provided at     
  other than regular hours charged at the applicable overtime hourly    
  rate.                                                                 

    Dated: May 7, 1997.
James R. Baker,
Administrator.
[FR Doc. 97-12435 Filed 5-12-97; 8:45 am]
BILLING CODE 3410-EN-P