[Federal Register Volume 62, Number 138 (Friday, July 18, 1997)]
[Proposed Rules]
[Pages 38488-38489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18943]
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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. 138 / Friday, July 18, 1997 /
Proposed Rules
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DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration
7 CFR Part 800
RIN 0580-AA56
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 Grain Inspection, Packers and Stockyards Administration
(GIPSA) is proposing a 12.5 percent increase in the administrative
service fee for official inspection and weighing services performed in
the United States under the United States Grain Standards Act (USGSA),
as amended. The fee adjustment is necessary to cover indirect field
office and headquarters operational costs and to maintain a 3-month
operational reserve. GIPSA is also proposing to delete from the fee
schedule the unit fees for submitted samples and factor only analysis
performed online at an applicant's facility.
DATES: Written comments must be submitted on or before August 18, 1997.
ADDRESSES: Written comments must be submitted to George Wollam, USDA,
GIPSA, ART, Stop 3649, Washington, DC 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, DC 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 the 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 section 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 applies 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. A 3-percent increase in hourly and certain unit fees went
into effect June 15, 1997, and will recover the increased operational
costs caused by mandated cost-of-living increases to Federal salaries.
That increase is anticipated to generate $218,100 in additional
revenue, bringing to $22.21 million the projected total revenue for
fiscal year 1997. This proposed 12.5 percent increase in the
administrative fee (which was not addressed in an earlier June 15,
1997, increase) is designed to generate sufficient revenue to cover
indirect costs associated with field office and headquarters operations
and to maintain the retained earnings at a 3-month operating reserve
for the inspection and weighing program. Additional revenue estimated
for fiscal year 1998 is projected to be $440,000 at an 85.6 million
metric ton level. The 12.5 percent increase will not have a significant
economic impact on small entities.
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 GIPSA to charge and collect reasonable fees for
performing official inspection and weighing services. The fees are to
cover, as nearly as practicable, FGIS's costs for performing these
services, including related administrative and supervisory costs.
Effective October 1, 1996, GIPSA changed the methodology it uses
for fees charged for its inspection and weighing services. The current
fee structure for these services consists of three basic components:
(1) An hourly rate charged to recover the direct labor costs of
providing service; (2) a unit test or service rate; and (3) a per
metric ton administrative charge to recover the indirect costs, such as
salaries and benefits for office management and support staff and rent,
incurred both at field offices and headquarters. Fees charged in the
first two components of the structure were increased by approximately 3
percent effective June 15, 1997 (62 FR 31701, June 11, 1997, corrected
at 62 FR 34342, June 25, 1997), to cover increased costs due to
mandated Federal cost-of-living increases. At that time, GIPSA noted
[[Page 38489]]
that a further adjustment of fees, including an adjustment to the
administrative fee to recover the indirect costs of field offices and
headquarters and to replenish the operating reserve, would be addressed
in future rulemaking.
The current USGSA administrative fee was published in the August
22, 1996, Federal Register (61 FR 43301) and became effective on
October 1, 1996. The per metric ton administrative charge recovers the
indirect costs and administrative costs of FGIS field offices and
headquarters such as the salaries and benefits for office management
and support staff, Departmental charges, Animal and Plant Health
Inspection Service and Agricultural Marketing Service charges,
management of computers and software, utilities, and rent. The 3-
percent increase that became effective June 15, 1997, was intended to
recover only increases to the salaries of service personnel responsible
for inspection and weighing of grain. The administrative fee is
assessed on all outbound grain inspected and/or weighed at an
applicant's facility.
Six levels of fees exist, 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
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 is reached.
Comparison of Current and Proposed Administrative Fees
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Current Proposed
Metric tons fees fees
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1-1,000,000......................................... $0.090 $0.1013
1,000,001-1,500,000................................. .082 .0923
1,500,001-2,000,000................................. .042 .0473
2,000,001-5,000,000................................. .032 .0360
5,000,001-7,000,000................................. .017 .0192
7,000,001+.......................................... .002 .0023
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GIPSA is now proposing a 12.5 percent increase in the
administrative fee. This increase is designed to generate additional
revenue to cover the indirect costs associated with field office and
headquarters operations and maintain the retained earnings at a 3-month
operating reserve for the inspection and weighing program.
GIPSA estimates collecting $22.2 million in revenue for fiscal year
1997 under the current fee schedule. This is $1 million less than the
$23.2 million estimated cost of operations for fiscal year 1997.
Similar losses have occurred for 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 earning balance
of only $922,000 at the beginning of fiscal year 1997, significantly
below a desired 3-month operating reserve of $6 million.
Indirect costs for the inspection and weighing program are
estimated at $4.68 million, or 20 percent of the total $23.2 obligation
for the program. Because of a down-turn in metric tons exported, the
current administrative fee will generate only an estimated $3.5 million
for fiscal year 1997, resulting in an estimated loss of $1.18 million.
The administrative fee must be increased to ensure sufficient
revenue is collected to recover indirect costs for an average export
volume year. This will permit any excess revenue collected during high
volume years, such as 89.9 million metric tons in FY 1996, to offset
low volume years such as this year estimated at 76 million metric tons.
The current administrative fee generates an estimated $4.09 million
at the 5-year average export volume of 85.6 million metric tons. The
proposed fee increase of 12.5 percent will generate an estimated $4.53
million at the 85.6 million metric ton level, or increase actual
revenue by $440,000 or 10.75 percent.
It is further proposed that fees for submitted samples and factor
only analysis performed online at an applicant's facility (7 CFR
800.71, Table 1 (3)(ii)) be deleted because these services are covered
under the hourly rate and should not be charged as a separate test.
Proposed Action
The Agency proposes, effective October 1, 1997, to apply a 12.5
percent increase to Administrative Fees in 7 CFR 800.71, Table 1 (3),
and to delete fees for Additional Service (assessed in addition to all
other fees) in Table 1 (3)(ii).
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 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 paragraph (a), Schedule A, is amended by revising
Table 1 (3) 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\
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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........................................... $0.1013
(b) 1,000,001--1,500,000................................... 0.0923
(c) 1,500,001--2,000,000................................... 0.0473
(d) 2,000,001--5,000,000................................... 0.0360
(e) 5,000,001--7,000,000................................... 0.0192
(f) 7,000,001--............................................ 0.0023
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\1\ Fees 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).
* * * * *
\4\ The administrative fee is assessed on an accumulated basis beginning
at the start of the Service's fiscal year (October 1 each year).
* * * * * * *
Dated: July 14, 1997.
James R. Baker,
Administrator.
[FR Doc. 97-18943 Filed 7-17-97; 8:45 am]
BILLING CODE 3410-EN-P