[Federal Register Volume 62, Number 241 (Tuesday, December 16, 1997)]
[Rules and Regulations]
[Pages 65747-65748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32779]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 94

[Docket No. 97-034-3]


Change in Disease Status of The Netherlands Because of BSE

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: We are adopting as a final rule, without change, an interim 
rule that added The Netherlands to the list of countries where bovine 
spongiform encephalopathy (BSE) exists. We took this action because BSE 
was detected in a cow in The Netherlands. The effect of the interim 
rule was to prohibit or restrict the importation of live ruminants and 
certain fresh, chilled, and frozen meat, and certain other animal 
products and animal byproducts from ruminants which have been in The 
Netherlands. The interim rule was necessary to reduce the risk that BSE 
could be introduced into the United States.

EFFECTIVE DATE: The interim rule was effective on March 21, 1997.

FOR FURTHER INFORMATION CONTACT: Dr. John Cougill, Staff Veterinarian, 
Animal Products Program, National Center for Import and Export, VS, 
APHIS, 4700 River Road Unit 40, Riverdale, MD 20737-1231, (301) 734-
3399; or e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    In an interim rule effective April 10, 1997, and published in the 
Federal Register on April 15, 1997 (62 FR 18263-18264, Docket No. 97-
034-1), we amended our regulations by adding The Netherlands to the 
list of countries where BSE exists. We took this action because BSE was 
detected in a cow born in The Netherlands. We also published another 
interim rule in the Federal Register on May 7, 1997 (62 FR 24802, 
Docket No. 97-034-2), that changed the effective date of the April 1997 
interim rule from April 10, 1997, to March 21, 1997. The change in 
effective date was necessary to ensure that the prohibitions and 
restrictions established by the April 1997 interim rule applied to 
animal products and byproducts that were shipped to the United States 
from The Netherlands between March 21, 1997, when BSE was detected in 
The Netherlands, and April 10, 1997, when the first interim rule was 
signed.
    Comments on the interim rule were required to be received on or 
before June 16, 1997. We received two comments by that date. They were 
from a company that imports cattle semen and an importer of meat and 
meat byproducts. They are discussed below.
    The commenters did not oppose adding The Netherlands to the list of 
countries where BSE exists. However, one comment expressed concerns 
about Animal and Plant Health Inspection Service regulations that 
restrict the importation of veal from countries where BSE is known to 
exist. The other comment concerned the trade protocols of the United 
States and other countries for importing cattle semen from countries 
where BSE exists. Both comments are outside the scope of the interim 
rule. However, we continually review and update our regulations to make 
them consistent with current scientific data. We will consider these 
comments as we review our regulations. If we decide to make any changes 
to our regulations in response to these comments, we will publish a 
proposed rule in the Federal Register.

[[Page 65748]]

    Therefore, based on the rationale set forth in the April 1997 
interim rule, we are affirming the provisions of the interim rule 
without change.
    This action also affirms the information contained in the interim 
rule concerning Executive Orders 12866 and 12988 and the Paperwork 
Reduction Act.
    Further, for this action, the Office of Management and Budget has 
waived the review process required by Executive Order 12866.

Regulatory Flexibility Act

    This rule affirms an interim rule that amended our regulations by 
adding The Netherlands to the list of countries where BSE exists. We 
took this action because BSE was detected in a cow in that country. The 
effect of the interim rule was to prohibit or restrict the importation 
of certain fresh, chilled, and frozen meat, and certain other animal 
products and animal byproducts from ruminants which have been in The 
Netherlands. The interim rule was necessary to reduce the risk that BSE 
could be introduced into the United States.
    BSE is a slowly progressing fatal degenerative disease that affects 
the central nervous system of cattle. The disease was first diagnosed 
in 1986 in Great Britain, where it is sometimes called ``mad cow 
disease.'' Infected animals may display changes in temperament, 
abnormal posture, incoordination and difficulty in rising, decreased 
milk production, and loss of body condition despite continued appetite. 
The causative agent of BSE is not completely characterized, and there 
is no treatment for the disease. At the current time, the disease is 
not known to exist in the United States. There is no vaccine to prevent 
BSE nor is there a test to detect the disease in live animals. Given 
those factors, the import restrictions imposed by the interim rule are 
the most effective means available for ensuring that BSE does not enter 
the United States from The Netherlands.
    Preventing the introduction of BSE into the United States is 
critical. In addition to the potential threat to public health, BSE 
also has the potential to cause severe economic hardship for the U.S. 
livestock industry. Great Britain's experience with the disease 
provides an insight into how damaging BSE can be to livestock. Between 
November 1986 (when BSE was first diagnosed in Great Britain) and May 
1996, an estimated 160,540 head of cattle in approximately 33,455 herds 
were diagnosed with BSE in Great Britain. The epidemic peaked there in 
January 1993, with almost 1,000 new cases per week. All of the animals 
in Great Britain showing signs of BSE, most of which were dairy cows 
between 3 and 5 years of age, were destroyed.
    If BSE were introduced into the United States, livestock losses 
would likely be much greater than in Great Britain, because the United 
States raises more cattle. However, assuming the same number of cattle 
losses in the United States as in Great Britain (160,540), the 
introduction of BSE into the United States would cost U.S. livestock 
producers $177 million, based on the current price of $1,100 per head 
for dairy cows. The $177 million figure does not include higher 
production costs that would likely be incurred by U.S. producers, due 
to the presence of the disease.
    U.S. export and consumer markets would also be affected. The United 
States currently restricts the importation of live ruminants and 
ruminant products from all countries where BSE is known to exist. 
Presumably, if BSE were introduced into the United States, other 
countries would adopt similar restrictions on the exportation of live 
ruminants and ruminant products from the United States. Such 
restrictions by other countries would be devastating economically. In 
1993, for example, the dollar value of U.S. exports of both bovine 
animals and bovine animal meat totaled $2.1 billion. Those export sales 
could be lost in their entirety. Consumers would incur higher costs due 
to higher prices for ruminant products and increased prices for 
competitive products, such as poultry.
    We expect that restricting the importation of live ruminants and 
ruminant products from The Netherlands will have little or no impact on 
U.S. consumers. This is because The Netherlands does not export live 
ruminants to the United States. Also, U.S. imports of ruminant products 
from The Netherlands are minimal when compared against total U.S. 
imports or overall U.S. supply (imported and domestically produced) of 
those commodities. In 1996, the volume of ruminant products imported 
from The Netherlands, categorized into seven broad product groups, was 
as follows: 149,906 kilograms (kg) of fresh or frozen beef with bone; 
2,060 kg of prepared or preserved beef; 307,259 kg of variety meats; 
458 cattle embryos; 3,016,847 kg of miscellaneous animal products; and 
1,587,244 kg of animal feed. These seven product groups represent 40 
subcategories of products imported from The Netherlands. For most 
subcategories, The Netherlands' share of the total U.S. imports of that 
product was 1 percent or less. The Netherlands' share exceeded 10 
percent of the total U.S. imports in only 5 subcategories. However, 
even for those 5 product subcategories, The Netherlands' share of 
overall U.S. supply was not significant. Because The Netherlands is not 
a significant supply source for the U.S. market, restrictions on 
imports from The Netherlands should not have a significant effect on 
consumer prices in the United States.
    The Regulatory Flexibility Act requires that agencies consider the 
economic impact of rule changes on small entities. We expect the 
interim rule will have little or no impact on small entities in the 
United States because imports of ruminants and ruminant products from 
The Netherlands affected by this interim rule have been minimal in the 
past. Small brokers, agents, and others in the United States who are 
directly involved in the importation and sale of ruminant products from 
The Netherlands should be able to obtain substitutes from alternative 
sources. We were unable to determine the number of small entities 
engaged in these activities.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action will 
not have a significant economic impact on a substantial number of small 
entities.

List of Subjects in 9 CFR Part 94

    Animal diseases, Imports, Livestock, Meat and meat products, Milk, 
Poultry and poultry products, Reporting and recordkeeping requirements.

PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL 
PLAGUE), EXOTIC NEWCASTLE DISEASE, AFRICAN SWINE FEVER, HOG 
CHOLERA, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND 
RESTRICTED IMPORTATIONS

    Accordingly, we are adopting as a final rule, without change, the 
interim rule that amended 9 CFR part 94 and that was published at 62 FR 
18263-18264 on April 15, 1997.

    Authority: 7 U.S.C. 147a, 150ee, 161, 162, and 450; 19 U.S.C. 
1306, 21 U.S.C. 111, 114a, 134a, 134b, 134c, 134f, 136, and 136a; 31 
U.S.C. 9701; 42 U.S.C. 4331 and 4332; 7 CFR 2.22, 2.80, and 
371.2(d).

    Done in Washington, DC, this 10th day of December 1997.
Craig A. Reed,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 97-32779 Filed 12-15-97; 8:45 am]
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