[Federal Register Volume 63, Number 51 (Tuesday, March 17, 1998)]
[Rules and Regulations]
[Pages 12977-12979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6772]



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 Rules and Regulations
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  Federal Register / Vol. 63, No. 51 / Tuesday, March 17, 1998 / Rules 
and Regulations  

[[Page 12977]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 999

[Docket No. FV97-999-1 FIR]


Specialty Crops; Import Regulations; Extension of Reporting 
Period for Peanuts Imported Under 1997 Import Quotas

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting, as a 
final rule, without change, the provisions of an interim final rule 
which removed the 23-day reporting requirement and established a new 
date for importers to report disposition of peanuts imported under 1997 
peanut import quotas. This rule also finalizes the establishment of a 
120-day reporting period for any peanuts imported in excess of the 1997 
import quotas. The 23-day report period established in the import 
regulation is impractical given the volume of peanuts imported under 
January 1 and April 1 peanut import quotas. These changes are for the 
1997 peanut quota periods only. This rule is deemed necessary by the 
Agricultural Marketing Service (AMS) to provide peanut importers with 
sufficient time to meet the quality and reporting requirements of the 
peanut import regulation.

EFFECTIVE DATE: April 16, 1998.

FOR FURTHER INFORMATION CONTACT: Tom Tichenor, Senior Marketing 
Specialist, Marketing Order Administration Branch, Fruit and Vegetable 
Programs, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456; tel: (202) 720-6862; fax (202) 720-5698. Small business may 
request information on compliance with this regulation by contacting 
Jay Guerber, Marketing Order Administration Branch, Fruit and Vegetable 
Programs, AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 20090-
6456; telephone (202) 720-2491, Fax: (202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule amends the peanut import 
regulation published in the June 19, 1996, issue of the Federal 
Register (61 FR 31306, 7 CFR Part 999.600), which regulates the quality 
of imported peanuts. An amendment to the regulation was issued December 
31, 1996 (62 FR 1249, January 9, 1997). The import regulation is 
effective under subparagraph (f)(2) of section 108B of the Agricultural 
Act of 1949 (7 U.S.C. 1445c-3), as amended November 28, 1990, and 
August 10, 1993, and section 155 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C.7271). Those statutes provide that the 
Secretary of Agriculture (Secretary) shall require that all peanuts in 
the domestic and export markets fully comply with all quality standards 
under Marketing Agreement No. 146 (7 CFR Part 998) (Agreement), issued 
pursuant to the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674).
    This rule has been determined not significant for purposes of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the regulations, disposition of imported peanuts 
must be reported to AMS within an established time period. This rule 
changes that time period and is intended to apply to Mexican peanuts 
imported from January 1, 1997, to December 31, 1997, and to Argentine 
and ``other country'' peanuts imported from April 1, 1997, to March 31, 
1998. This rule will not preempt any State or local laws, regulations, 
or policies, unless they present an irreconcilable conflict with this 
rule. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of this rule.
    This rule amends, for the 1997 peanut quota year, a provision in 
Sec. 999.600 of the regulations governing imported peanuts (7 CFR part 
999--Specialty Crops; Import Regulations). Section 999.600 establishes 
minimum quality, identification, certification, and safeguard 
requirements for foreign produced farmers stock, shelled and cleaned-
inshell peanuts presented for importation into the United States. The 
quality requirements are the same as those specified in Sec. 998.100 
Incoming quality regulation and Sec. 998.200 Outgoing quality 
regulation of the Agreement.
    The import regulation was finalized June 19, 1996 (61 FR 31306). At 
that time, three duty-free peanut quotas for 1996 had been filled and 
no peanuts were entered under duty for the remainder of 1996. 
Therefore, the peanut import regulation had its first practical 
application with the opening of the Mexican peanut quota on January 1, 
1997.
    Under the safeguard procedures, importers are required to report to 
AMS disposition of all imported peanuts. Paragraph (f)(3) of the 
regulations sets a 23-day period for filing certificates of inspection 
and aflatoxin testing. Sixty day extensions are possible, but requests 
for these must be filed within the 23-day reporting period. The 
reporting period and procedures for extension were established with the 
expectation that three duty-free quotas would fill gradually during the 
quota year. However, this did not occur. The Mexican quota of 8.1 
million pounds closed approximately 4 weeks after the January 1, 1997 
opening. The Argentine quota of 73.5 million pounds and the ``other 
country'' quota of 13.3 million pounds filled immediately at 12:00 noon 
on opening day, April 1, 1997. Importers' applications to enter peanuts 
under the Argentine and ``other country'' quotas greatly exceeded the 
quota volumes for these countries. After pro-rata distribution of those 
quotas (based on the total peanut volume in each importer's entry 
applications), the Customs Service set April 15 as the entry date for 
approximately 86.8 million pounds of peanuts under the two quotas.
    Because of the large volume of peanuts simultaneously released on 
April 15, 1997, importers have been unable to meet the 23-day reporting 
deadline for many of their imported lots. Obstacles to expedient 
certification of such large volumes of imported peanuts included: (1) 
Logistics of moving containers out of some congested port areas and 
into storage; (2) arranging for sampling and inspection, and receiving 
certifications;

[[Page 12978]]

and (3) arranging for and transporting failing lots to facilities for 
reconditioning and recertification.
    Therefore, this rule finalizes establishment of the new reporting 
date of November 1, 1997, for reporting disposition of all peanuts 
entered under the 1997 import quotas. It also provides for an extension 
of the reporting period beyond November 1. Requests for extensions must 
be made in writing and include the Customs Service entry number, 
container and lot information for the unreported peanut lot(s), and the 
reason for delay in meeting the November 1 reporting date. AMS will 
evaluate each request on a case-by-case basis.
    Peanuts may continue to be imported into the United States after 
the import quotas are closed (with payment of tariff charges). 
Therefore, this rule also provides that disposition of any peanuts 
imported after the 1997 import quotas close must be reported within 120 
days after the peanuts are entered by the Customs Service.
    As a compliance measure, paragraph (f)(4) provided that the 
Secretary would ask the Customs Service to demand redelivery of peanut 
lots not reported as meeting the requirements of the import regulation. 
Because this rule extends the reporting period beyond the Customs 
Service 30-day redelivery demand period, the first three sentences in 
paragraph (f)(4) are not applicable for peanuts entered under the three 
1997 import quotas. Those sentences are therefore removed in this 
rulemaking. The remainder of paragraph (4) regarding failure to comply 
with the import regulation and falsification of reports is retained.
    These changes do not affect the stamp-and-fax procedure established 
in paragraph (f)(1) of the safeguard provisions. That procedure ensures 
notification of the Federal or Federal-State Inspection Service of 
applications to import peanuts. This rule also does not change the 
safeguard requirement that all imported lots must be reported. Pursuant 
to paragraph (f)(1), all imported peanuts must be reported to AMS--
including those peanut lots that meet import requirements. Paragraph 
(f)(2) provides that the quality and aflatoxin certifications and other 
documentation must be sent by regular mail to: Marketing Order 
Administration Branch, F&V, AMS, USDA, P.O. Box 96456, Room 2525-S, 
Washington, D.C. 20090-6456, ``Attention: Report of Imported Peanuts.'' 
Overnight or express mail reports may be sent to Marketing Order 
Administration Branch, F&V, AMS, USDA , 14th and Independence Avenue, 
S.W. Room 2525-S, Washington, D.C. 20250, ``Attention: Report of 
Imported Peanuts.''
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action on small entities. Accordingly, AMS has 
prepared this final regulatory flexibility analysis relevant to this 
rulemaking.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. AMS records for 1997 show 
that approximately ten importers of peanuts were large handlers of 
domestically grown peanuts and six were importers of general food 
commodities, some of whom may be small entities. Small agricultural 
service firms, which include importers, have been defined by the Small 
Business Administration (13 CFR 121.601) as those whose annual receipts 
are less than $5 million. Although small business entities may be 
engaged in the importation of peanuts, the majority of the importers 
are large business entities.
    This rule extends for the 1997 quota periods only the time period 
for importers to meet import requirements for each lot of imported 
peanuts and file reports on the disposition of those peanuts. The 
reporting requirements are an integral part of the safeguard procedures 
specified in the import regulation, which is required by statute. The 
requirements are applied uniformly to small as well as large importers.
    The previous reporting time period was 23 days. The new reporting 
time period ended on November 1, 1997. This change represents an 
increase, depending on date of entry of a peanut lot, of up to 280 days 
for Mexican peanut imports (entered on January 1) and 175 days for 
Argentine and ``other country'' peanuts (all of which were entered on 
April 15). The rule also extends the reporting period for all other 
peanut entries during the 1997 quota year from 23 days to 120 days. The 
additional time to meet requirements enabled importers to more 
efficiently manage movement and disposition of their imported peanuts.
    It is not possible to estimate cost savings that might result from 
any increased efficiency of operations because of this action. 
Extension requests, when properly requested, already have been granted 
by AMS. The rule will benefit importers of large quantities of peanuts 
by relieving the time pressure to have multiple lots certified, and 
many lots reconditioned, within a very short time period. The rule also 
will benefit small importers who do not have peanut handling resources 
and must contract with remillers and blanchers to recondition failing 
peanut lots. Records indicate that some importers, including small 
importers, are outside the domestic peanut production area, and must 
transport failing lots long distances for reconditioning.
    Alternative reporting time periods were considered by AMS. For the 
purposes of clarity, AMS believes that a single date, applicable to all 
1997 entries under the quota is less confusing than 60 or 90 days from 
the release date of a peanut lot by the Customs Service. Sixty days are 
considered too short, as some peanut lots entered on April 15 are being 
inspected for the first time more than two months later. Also, 
necessary reconditioning efforts, with appropriate sampling and re-
inspections after each attempt may take longer than 60 days. Extensions 
may be requested for individual lots not certified by the end of their 
applicable reporting period.
    AMS is not aware of any peanuts imported after the 1997 quotas were 
filled. However, any such imports would have been handled in a more 
routine manner and normal pace than when the great volumes were 
released simultaneously on quota opening days. Thus, the 120-day 
requirement for any peanuts imported after the quotas are filled is 
deemed reasonable by AMS.
    For these reasons, AMS has determined that this action will be 
beneficial to all importers, both large and small.
    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
Chapter 35) as amended in 1995, the information collection requirement 
contained in this rule was approved by the Office of Management and 
Budget (OMB) on September 3, 1996, and assigned OMB number 0581-0176. 
This rule does not establish new reporting or recordkeeping 
requirements. The current annual reporting burden for importers is 
estimated at 12 hours. Those affected by this rule have already 
reported entries and requested extensions of deadlines for reporting 
peanuts entered under the 1997 import quotas. Further, because no 
additional 1997 peanut imports are expected, there should be no need to 
file additional reports other than the final report of all entries, 
which is included in the approved 12 hour reporting burden.
    Paragraph (f)(3) of the rule is revised for the 1997 import periods 
only. All certificates and other documents reporting the disposition of 
passing, as well as failing and reconditioned,

[[Page 12979]]

peanut lots must be reported to AMS by November 1, 1997. This reporting 
date applies to only AMS' peanut import regulation and does not 
supersede other reporting dates for those peanuts that may be 
established by the Customs Service or other agencies. For peanuts 
imported after the quotas are filled, this rule extends the reporting 
period from 23 to 120 days, thus, reducing or eliminating the burden of 
requesting an extension of the reporting period.
    An interim final rule concerning this action was issued by the 
Department on September 19, 1997, and published in the Federal Register 
on September 25, 1997. Copies were mailed by AMS to all known peanut 
importers, exporters, customs brokers and appropriate embassies. That 
rule provided for a 30-day comment period which ended October 27, 1997. 
Three comments were received.
    One comment was received from the executive director of the Peanut 
Shellers Association of America, which stated that its members handle 
approximately 65 percent of the peanuts used in the United States. The 
Association supports the interim final rule extending the deadline for 
importers to report compliance with the peanut import regulation. The 
commenter also stated that some of the Association members request that 
AMS collect needed information from its inspection service and chemical 
laboratories. This request will be reviewed and considered for futher 
rulemaking, if appropriate. It will be addressed in a subsequent 
proposed rulemaking for 1998 peanut imports.
    A second comment was received from a major peanut importing 
company, which also is a handler of domestically produced peanuts. The 
commenter supports extension of the reporting period.
    The final comment was received from a regional peanut growers 
cooperative. The commenter agreed that the single reporting date of 
November 1 is better than the original regulation's date of 30 days 
after entry of a peanut shipment. The comment, however, disagreed that 
extensions should be granted to those importers who were unable to meet 
the November 1 deadline. It was necessary to provide for such 
extensions in order to allow peanut importers sufficient time to meet 
the quality and reporting requirements for 1997 peanut imports. Also, 
because of the volume of certifications being filed simultaneously by 
approximately 30 importers, AMS needs time to review filed documents 
and complete reviews of each importers peanut entries.
    Based on the comments received, no changes will be made to the 
interim final rule as published.
    The action is a relaxation of the reporting time period which 
benefits peanut importers who are experiencing difficulty meeting the 
established reporting time period requirements.
    After consideration of all relevant material presented, including 
the necessity by AMS to provide peanut importers sufficient time to 
meet the quality and reporting requirements of the peanut import 
regulation, it is found that finalizing the interim final rule, without 
change, as published in the Federal Register (62 FR 50241, September 
25, 1997) will tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 999

    Dates, Food grades and standards, Hazelnuts, Imports, Nuts, 
Peanuts, Prunes, Raisins, Reporting and recordkeeping requirements, 
Walnuts.
    For the reasons set forth in the preamble, 7 CFR Part 999 is 
amended as follows:

PART 999--SPECIALTY CROPS; IMPORT REGULATIONS

    Accordingly, the interim final rule amending 7 CFR Part 999.600 
which was published at 62 FR 50241 on September 25, 1997, is adopted as 
a final rule without change.

    Dated: March 9, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-6772 Filed 3-16-98; 8:45 am]
BILLING CODE 3410-02-P