[Federal Register Volume 62, Number 112 (Wednesday, June 11, 1997)]
[Rules and Regulations]
[Pages 31701-31704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15267]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / 
Rules and Regulations  

[[Page 31701]]


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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: Final rule.

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SUMMARY: The Federal Grain Inspection Service (FGIS) of the Grain 
Inspection, Packers and Stockyards Administration (GIPSA) is increasing 
by approximately 3 percent fees it charges for certain of its official 
inspection and weighing services performed in the United States under 
the United States Grain Standards Act (USGSA), as amended. The increase 
covers hourly rates and certain unit rates on tests performed at other 
than an applicant's facility. The 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.

EFFECTIVE DATE: June 15, 1997.

FOR FURTHER INFORMATION CONTACT: George Wollam, USDA-GIPSA-ART, Room 
0623-South Building, STOP 3649, 1400 Independence Avenue, S.W., 
Washington, D.C., 20250-3649, Telephone (202) 720-0292, or FAX (202) 
720-4628, or E-M[email protected].

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 final 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 final 
rule will not preempt any State or local laws, regulations, or policies 
unless they present irreconcilable conflict with this final rule. There 
are no administrative procedures which must be exhausted prior to any 
judicial challenge to provisions of this final rule.

Effects on Small Entities

    James R. Baker, Administrator, GIPSA, has determined that this 
final 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 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 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 
increase in fees will not have a significant impact on either small or 
large entities. Additional revenue estimated for fiscal year 1997 is 
projected to be $218,100 for a total of $22.21 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

    On May 13, 1997, GIPSA published in the Federal Register (62 FR 
26252) a proposal to increase by approximately 3 percent certain fees 
it charges for official inspection and weighing services. A correction 
docket was published in the Federal Register (62 FR 28922) on May 28, 
1997, which made non substantive format and editorial changes to Table 
1 of schedule A of section 800.71(a).
    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 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 final 
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 were published in the Federal Register on 
August 22, 1996 (61 FR 43301), and became effective on October 1, 1996. 
The current fee schedule is projected to 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

[[Page 31702]]

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 $22.21 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 will be addressed in future rulemaking.

Comment Review

    FGIS received three comments from trade associations during the 15-
day comment period. One commentor did not oppose the proposed increases 
to existing fees; one was neutral on the proposed fee increase; and one 
did not address the merits of the fee increase itself. All the 
commentors, however, encourage GIPSA to strengthen its efforts to trim 
overhead and improve operating efficiencies throughout the 
organization. GIPSA continuously monitors its costs and strives to 
lessen overhead and improve operating efficiencies.
    One commentor also was of the view that the 15-day comment period 
did not allow enough time to notify its members of the proposed action. 
As stated in the proposal, a 15-day comment period was 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 was deemed necessary to 
implement any fee increase that may result from this rulemaking as soon 
as possible.

Final Action

    GIPSA is applying 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 fees that require a 3-
percent increase, FGIS identified several fees that under the current 
fee schedule are at levels that do not require any change. Accordingly, 
those fees will remain the same at this time.
    It is found that good cause exists for not postponing the effective 
date of this rule until 30 days after publication in the Federal 
Register (5 U.S.C. 553) because: (1) 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; 
(2) given the current level of the operating reserve, the fee increase 
should be implemented as soon as possible; and the effective date 
coincides with beginning of a billing 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 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 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.............................................       $23.80       $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
----------------------------------------------------------------------------------------------------------------
                (2) Additional Tests (cost per test, assessed in addition to the hourly rate) \3\               
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(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).               
----------------------------------------------------------------------------------------------------------------
(i) All outbound carriers (per-metric-ton) \4\                                                                  
    (a) 1-1,000,000.........................................  ...........  ...........  ...........      $ 0.090

[[Page 31703]]

                                                                                                                
    (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
        (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

[[Page 31704]]

                                                                        
        (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
    (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 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   
  (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 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 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         ...........
      Scales (plus usage fee per day for test car).........        45.00
                                                                  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: June 6-5, 1997.
David R. Shipman,
Acting Administrator.
[FR Doc. 97-15267 Filed 6-10-97; 8:45 am]
BILLING CODE 3410-EN-P