[Federal Register Volume 62, Number 119 (Friday, June 20, 1997)]
[Notices]
[Pages 33582-33583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16248]


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 Notices
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  Federal Register / Vol. 62, No. 119 / Friday, June 20, 1997 / 
Notices  

[[Page 33582]]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency


U.S. Warehouse Act Fees

AGENCY: Farm Service Agency, USDA.

ACTION: Notice.

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

SUMMARY: The purpose of this notice is to publish a schedule increasing 
the fees to be charged under the United States Warehouse Act (USWA) 
regulations covering cotton, grain, tobacco, wool, dry bean, nut, 
syrup, and cottonseed warehouse operators for licensing and inspection 
services.

EFFECTIVE DATE: October 1, 1997.

FOR FURTHER INFORMATION CONTACT: Mr. Steve Mikkelsen, Warehouse and 
Inventory Division, Farm Service Agency, United States Department of 
Agriculture, 1400 Independence Avenue, SW, STOP 0553, Washington, DC 
20250-0553, telephone (202) 720-7433, FAX (202) 690-3123.

Background

    Pursuant to the provisions of the USWA which regulates warehouse 
operations for the benefit of all depositors, the Secretary has the 
authority to license public warehouse operators. Warehouse operators 
that opt to have a USWA license understand that fees will be imposed to 
cover the costs of the program. Specifically, the Omnibus Budget 
Reconciliation Act of 1981 mandates the imposition of fees for USWA 
licensed warehouses. The Act provides in part, that:
    The Secretary of Agriculture * * * shall charge, assess, and cause 
to be collected a reasonable fee for: (l) Each examination or 
inspection of a warehouse * * *; (2) each license issued to any person 
to classify, inspect, grade, sample, or weigh agricultural products 
stored or to be stored * * *; (3) each annual warehouse license issued 
to a warehouseman to conduct a warehouse * * *; and (4) each warehouse 
license amended, modified, extended, or reinstated * * *. Such fees 
shall cover, as nearly as practicable, the costs of providing such 
services and licenses * * * including administrative and supervisory 
costs * * *.
    The USWA mandates fee collections to help self-sustain the Federal 
warehouse licensing and examination programs. The Farm Service Agency 
(FSA) is raising USWA license and user fees to increase the amount of 
revenue generated to recover more of the actual operating costs for the 
USWA in fiscal year 1998 (FY).
    The regulations used in administering USWA fees were last amended 
effective October 1, 1994, (59 FR 51355), at which time an annual fee 
was imposed with respect to cotton warehouse operators. These 
regulations at 7 CFR part 735-743 provide that USWA fees could be 
adjusted annually in order to cover, as nearly as practicable, the 
operating costs for the program.
    A comprehensive review of the warehouse examination program was 
performed to review staffing levels, travel expenses, services that 
warehouse operators can expect to receive, services for which warehouse 
operators are willing to pay, and the type and scope of examinations 
needed to adequately protect a depositor's interest in warehouses 
licensed under the USWA.
    As a result of streamlining and restructuring of the Kansas City 
Commodity Office (KCCO) FSA, and the Washington office of FSA, the 
total staffing of FSA personnel associated with USWA activities has 
been reduced by 18.5 percent (i.e., warehouse examiners and office 
personnel) while supervisory staffing levels have been reduced by 24 
percent. Other efficiencies have been achieved through a variety of 
means including: the purchase and use of laptop computers for field 
warehouse examiners, thereby reducing time in performing examinations 
and reducing printing costs for forms used in examinations; and the 
reduction in travel expenses by personnel in KCCO and in Washington.
    The FY 98 fee adjustments reflect increases of no greater than 10 
percent for each type of commodity with the rate of increase depending 
on FSA's direct costs with respect to warehouse examinations for that 
commodity.
    Establishing an electronic data interchange (EDI) system for those 
agricultural products approved under the USWA has the potential of 
providing U.S. agribusiness and the USWA warehouse examination program 
considerable savings. For example, since 1995 electronic warehouse 
receipts (EWRs) have been used by the cotton industry and it is 
estimated that $5 to $10 per bale has been saved for each EWR issued in 
lieu of a paper receipt for a total savings of $40 to $80 million per 
year. The use of EDI for cotton has reduced the costs of the USWA 
warehouse examination program by approximately 30 percent. Similarly, 
the use of EWRs for grain and other agricultural products approved 
under the USWA would represent a major step in reducing the paperwork 
burden that currently impedes efficiency and add costs to the 
operations of agribusiness and the USWA. However, because of statutory 
restriction EWRs are only authorized for cotton.

Warehouse and Service License Fees

    The fee for original issuance, reissuance, or duplication of a 
license for cotton, grain, tobacco, wool, dry beans, nut, syrup, and 
cottonseed is $75 for each license issued. The fee charged to license 
individuals to inspect, sample, grade, classify, or weigh commodities 
is $30 for each service license issued.

Warehouse Annual and Inspection Fees

    These fees are shown in the following tables by agricultural 
product. Inspection fees are assessed for each original examination or 
inspection, or reexamination or reinspection for modification of an 
existing license. Annual fees are assessed independently of inspection 
fees.

                                 Cotton                                 
                               [In bales]                               
------------------------------------------------------------------------
                                                      Annual     Annual 
                                                     fee for    fee for 
                                                       each       each  
                                                    warehouse  warehouse
                 Licensed capacity                   location   location
                                                      with a   without a
                                                       CCC        CCC   
                                                     storage    storage 
                                                    agreement  agreement
------------------------------------------------------------------------
1-20,000..........................................       $550     $1,100
20,001-40,000.....................................        715      1,430
40,001-60,000.....................................        880      1,760
60,001-80,000.....................................      1,100      2,200
80,001-100,000....................................      1,375      2,750

[[Page 33583]]

                                                                        
100,001-120,000...................................      1,650      3,300
120,001-140,000...................................      1,925      3,850
140,001-160,000...................................      2,200      4,400
160,001+..........................................  \1\ 2,200  \2\ 4,400
                                                                        
------------------------------------------------------------------------
\1\ Plus $55 per 5,000 bale capacity above 160,000 bales or fraction    
  thereof.                                                              
\2\ Plus $110 per 5,000 bale capacity above 160,000 or fraction thereof.
Inspection fees will be charged at the rate of $75 for each 1,000 bales 
  of licensed capacity, or fraction thereof, but in no case less than   
  $150 nor more than $1,500.                                            


                                  Grain                                 
                              [In bushels]                              
------------------------------------------------------------------------
                                                      Annual     Annual 
                                                     fee for    fee for 
                                                       each       each  
                                                    warehouse  warehouse
                 Licensed Capacity                   location   location
                                                      with a   without a
                                                       CCC        CCC   
                                                     storage    storage 
                                                    agreement  agreement
------------------------------------------------------------------------
1-150,000.........................................       $145       $290
150,001-250,000...................................        290        580
250,001-500,000...................................        430        860
500,001-750,000...................................        575      1,150
750,001-1,000,000.................................        715      1,430
1,000,001-1,200,000...............................        860      1,720
1,200,001-1,500,000...............................      1,000      2,000
1,500,001-2,000,000...............................      1,145      2,290
2,000,001-2,500,000...............................      1,290      2,580
2,500,001-5,000,000...............................      1,430      2,860
5,000,001-7,500,000...............................      1,575      3,150
7,500,001-10,000,000..............................      1,720      3,440
10,000,001+.......................................  \1\ 1,720  \2\ 3,440
------------------------------------------------------------------------
\1\ Plus $45 per million bushels above 10,000,000 or fraction thereof.  
\2\ Plus $90 per million bushels above 10,000,000 or fraction thereof.  
Inspection fees will be charged at the rate of $15 for each 10,000      
  bushels or fraction thereof, but in no case less than $150 nor more   
  than $1,500.                                                          


                                Dry Beans                               
                           [In hundredweight]                           
------------------------------------------------------------------------
                                                                 Annual 
                      Licensed capacity                           fee   
------------------------------------------------------------------------
100-90,000...................................................       $715
90,001-150,000...............................................      1,000
150,001-300,000..............................................      1,290
300,001-450,000..............................................      1,575
450,001-600,000..............................................      1,860
600,001-720,000..............................................      2,145
720,001-900,000..............................................      2,435
900,001-1,200,000............................................      2,720
1,200,001-1,500,000..........................................      3,000
1,500,001-3,000,000..........................................      3,290
3,000,001+...................................................     3,575 
------------------------------------------------------------------------
Inspection fees will be charged at the rate of $15 for each 1,000       
  hundredweight, or fraction thereof, but in no case less than $150 nor 
  more than $1,500.                                                     

Tobacco and Wool

    Annual fee: $15 for each 100,000 pounds of licensed capacity, or 
fraction thereof, but in no case less than $575.
    Inspection fee: $15 for each 100,000 pounds of licensed capacity, 
or fraction thereof, but in no case less than $1,500.

Nuts

    Annual fee: 13 cents for each 100 short ton of licensed capacity, 
or fraction thereof, but in no case less than $575.
    Inspection fee: $7 for each 100 short ton of licensed capacity, or 
fraction thereof, of peanuts and $13 for each 1,000 hundredweight, or 
fraction thereof, but in no case less than $150 nor more than $1,500.

Syrup

    Annual fee: $15 for each 5,000 gallons of licensed capacity, or 
fraction thereof, but in no case less than $575.
    Inspection fee: $5 for each 5,000 gallons, or fraction thereof, but 
in no case less than $150 nor more than $1,500.

Cottonseed

    Annual fee: $15 for each 1,000 short tons of licensed capacity, or 
fraction thereof, but in no case less than $575.
    Inspection fee: $15 for each 1,000 short tons of licensed capacity, 
or fraction thereof, but in no case less than $150 nor more than 
$1,500.

    Signed at Washington, D.C., on June 16, 1997.
Richard O. Newman,
Acting Administrator, Farm Service Agency.
[FR Doc. 97-16248 Filed 6-19-97; 8:45 am]
BILLING CODE 3410-05-P