[Federal Register Volume 63, Number 167 (Friday, August 28, 1998)]
[Rules and Regulations]
[Pages 45935-45937]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23228]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1230

[No. LS-98-004]


Pork Promotion, Research, and Consumer Information Order-- 
Decrease in Importer Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer 
Information Act (Act) of 1985 and the Pork Promotion, Research, and 
Consumer Information Order (Order) issued thereunder, this final rule 
decreases by one-hundredth of a cent per pound the amount of the 
assessment per pound due on imported pork and pork products to reflect 
a decrease in the 1997 five-market average price for domestic barrows 
and gilts. This action brings the equivalent market value of the live 
animals from which such imported pork and pork products were derived in 
line with the market values of domestic porcine animals. These changes 
will facilitate the continued collection of assessments on imported 
porcine animals, pork, and pork products.

EFFECTIVE DATE: September 28, 1998.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing 
Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778 and Regulatory Flexibility Act and 
the Paperwork Reduction Act

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by the Office 
of Management and Budget.
    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This is not intended to have a retroactive 
effect. The Act states that the statute is intended to occupy the field 
of promotion and consumer education involving pork and pork products 
and of obtaining funds thereof from pork producers and that the 
regulation of such activity (other than a regulation or requirement 
relating to a matter of public health or the provision of State or 
local funds for such activity) that is in addition to or different from 
the Act may not be imposed by a State.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under Sec. 1625 of the Act, a 
person subject to an order may file a petition with the Secretary 
stating that such order, a provision of such order or an obligation 
imposed in connection with such order is not in accordance with law; 
and requesting a modification of the order or an exemption from the 
order. Such person is afforded the opportunity for a hearing on the 
petition. After the hearing, the Secretary would rule on the petition. 
The Act provides that the district court of the United States in the 
district in which such person resides or does business has jurisdiction 
to review the Secretary's determination, if a complaint is filed not 
later than 20 days after the date such person receives notice of such 
determination.
    This action also was reviewed under the Regulatory Flexibility Act 
(RFA) (5 United States Code (U.S.C.) 601 et seq.). The effect of the 
Order upon small entities initially was discussed in the September 5, 
1986, issue of the Federal Register (51 FR 31898). It was determined at 
that time that the Order would not have a significant effect upon a 
substantial number of small entities. Many of the estimated 1,000 
importers may be classified as small entities under the Small Business 
Administration definition (13 CFR 121.601).
    This final rule decreases the amount of assessments on imported 
pork and pork products subject to assessment by one-hundredth of a cent 
per pound, or as expressed in cents per kilogram, two-

[[Page 45936]]

hundredths of a cent per kilogram. This decrease is consistent with the 
decrease in the annual price of domestic barrows and gilts for calendar 
year 1997. Adjusting the assessments on imported pork and pork products 
would result in an estimated decrease in assessments of $63,000 over a 
12-month period. Assessments collected for 1997 were $3,369,587. 
Accordingly, the Administrator of the Agricultural Marketing Service 
(AMS) has determined that this action will not have a significant 
economic impact on a substantial number of small entities.
    The Act (7 U.S.C. 4801-4819) approved December 23, 1985, authorized 
the establishment of a national pork promotion, research, and consumer 
information program. The program was funded by an initial assessment 
rate of 0.25 percent of the market value of all porcine animals 
marketed in the United States and an equivalent amount of assessment on 
imported porcine animals, pork, and pork products. However, that rate 
was increased to 0.35 percent in 1991 (56 FR 51635) and to 0.45 percent 
effective September 3, 1995 (60 FR 29962). The final Order establishing 
a pork promotion, research, and consumer information program was 
published in the September 5, 1986, issue of the Federal Register (51 
FR 31898; as corrected, at 51 FR 36383 and amended at 53 FR 1909, 53 FR 
30243, 56 FR 4, 56 FR 51635, 60 FR 29962, 60 FR 33681, and 60 FR 58501) 
and assessments began on November 1, 1986.
    The Order requires importers of porcine animals to pay the U.S. 
Customs Service (USCS), upon importation, the assessment of 0.45 
percent of the animal's declared value and importers of pork and pork 
products to pay USCS, upon importation, the assessment of 0.45 percent 
of the market value of the live porcine animals from which such pork 
and pork products were produced. This final rule decreases the 
assessments on all of the imported pork and pork products subject to 
assessment as published in the Federal Register as a final rule May 13, 
1997, and effective June 12, 1997; (62 FR 26205). This decrease is 
consistent with the decrease in the annual average price of domestic 
barrows and gilts for calendar year 1997 as reported by USDA, AMS, 
Livestock and Grain Market News (LGMN) Branch. This decrease in 
assessments will make the equivalent market value of the live porcine 
animal from which the imported pork and pork products were derived 
reflect the recent decrease in the market value of domestic porcine 
animals, thereby promoting comparability between importer and domestic 
assessments. This final rule will not change the current assessment 
rate of 0.45 percent of the market value.
    The methodology for determining the per pound amounts for imported 
pork and pork products was described in the Supplementary Information 
accompanying the Order and published in the September 5, 1986, Federal 
Register at 51 FR 31901. The weight of imported pork and pork products 
is converted to a carcass weight equivalent by utilizing conversion 
factors which are published in the Department's Statistical Bulletin 
No. 697 ``Conversion Factors and Weights and Measures.'' These 
conversion factors take into account the removal of bone, weight lost 
in cooking or other processing, and the nonpork components of pork 
products. Secondly, the carcass weight equivalent is converted to a 
live animal equivalent weight by dividing the carcass weight equivalent 
by 70 percent, which is the average dressing percentage of porcine 
animals in the United States. Thirdly, the equivalent value of the live 
porcine animal is determined by multiplying the live animal equivalent 
weight by an annual average market price for barrows and gilts as 
reported by USDA, AMS, LGMN Branch. This average price is published on 
a yearly basis during the month of January in LGMN Branch's publication 
``Livestock, Meat, and Wool Weekly Summary and Statistics.'' Finally, 
the equivalent value is multiplied by the applicable assessment rate of 
0.45 percent due on imported pork and pork products. The end result is 
expressed in an amount per pound for each type of pork or pork product. 
To determine the amount per kilogram for pork and pork products subject 
to assessment under the Act and Order, the cent per pound assessments 
are multiplied by a metric conversion factor 2.2046 and carried to the 
sixth decimal.
    The formula in the preamble for the Order at 51 FR 31901 
contemplated that it would be necessary to recalculate the equivalent 
live animal value of imported pork and pork products to reflect changes 
in the annual average price of domestic barrows and gilts to maintain 
equity of assessments between domestic porcine animals and imported 
pork and pork products.
    The average annual market price decreased from $52.77 in 1996 to 
$51.30 in 1997, a decrease of about 3 percent. This decrease will 
result in a corresponding decrease in assessments for all HTS numbers 
listed in the table in Sec. 1230.110, 62 FR 26205; May 13, 1997, of an 
amount equal to one-hundredth of a cent per pound, or as expressed in 
cents per kilogram, two-hundredths of a cent per kilogram. Based on the 
most recent available Department of Commerce, Bureau of Census, data on 
the volume of imported pork and pork products, the decrease in 
assessment amounts would result in an estimated $63,000 decrease in 
assessments over a 12-month period.
    On June 11, 1998, AMS published in the Federal Register (63 FR 
31942) a proposed rule which would decrease the per pound assessment on 
imported pork and pork products consistent with decreases in the 1997 
average prices of domestic barrows and gilts to provide comparability 
between imported and domestic assessments. The proposal was published 
with a request for comments by July 13, 1998. No comments were 
received.
    This final rule provides for a 30-day waiting period. This period 
is appropriate because the final rule simply provides for an adjustment 
in the per pound assessment levels on imported pork and pork products 
to reflect changes in live hog prices which occurred from 1996 to 1997. 
These live hog prices form the basis for the assessments. These 
adjustments should be made effective as soon as possible to promote 
optimum equity.
    Accordingly, this final rule establishes the new per-pound and per-
kilogram assessments on imported pork and pork products.

List of Subjects in 7 CFR Part 1230

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreement, Meat and meat products, Pork and pork 
products.

    For the reasons set forth in the preamble, 7 CFR Part 1230 is 
amended as follows:

PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION

    1. The authority citation for 7 CFR part 1230 continues to read as 
follows:

    Authority: 7 U.S.C. 4801-4819.

Subpart B--[Amended]

    2. Section 1230.110 is revised to read as follows:


Sec. 1230.110  Assessments on imported pork and pork products.

    (a) The following HTS categories of imported live porcine animals 
are subject to assessment at the rate specified.

------------------------------------------------------------------------
        Live porcine animals                      Assessment            
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0103.10.0000........................  0.45 percent Customs Entered      
                                       Value.                           

[[Page 45937]]

                                                                        
0103.91.0000........................  0.45 percent Customs Entered      
                                       Value.                           
0103.92.0000........................  0.45 percent Customs Entered      
                                       Value.                           
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    (b) The following HTS categories of imported pork and pork products 
are subject to assessment at the rates specified.

------------------------------------------------------------------------
                                                    Assessment          
         Pork and pork products          -------------------------------
                                             Cents/lb        Cents/kg   
------------------------------------------------------------------------
0203.11.0000............................             .33         .727518
0203.12.1010............................             .33         .727518
0203.12.1020............................             .33         .727518
0203.12.9010............................             .33         .727518
0203.12.9020............................             .33         .727518
0203.19.2010............................             .38         .837748
0203.19.2090............................             .38         .837748
0203.19.4010............................             .33         .727518
0203.19.4090............................             .33         .727518
0203.21.0000............................             .33         .727518
0203.22.1000............................             .33         .727518
0203.22.9000............................             .33         .727518
0203.29.2000............................             .38         .837748
0203.29.4000............................             .33         .727518
0206.30.0000............................             .33         .727518
0206.41.0000............................             .33         .727518
0206.49.0000............................             .33         .727518
0210.11.0010............................             .33         .727518
0210.11.0020............................             .33         .727518
0210.12.0020............................             .33         .727518
0210.12.0040............................             .33         .727518
0210.19.0010............................             .38         .837748
0210.19.0090............................             .38         .837748
1601.00.2010............................             .46        1.014116
1601.00.2090............................             .46        1.014116
1602.41.2020............................             .50        1.102300
1602.41.2040............................             .50        1.102300
1602.41.9000............................             .33         .727518
1602.42.2020............................             .50        1.102300
1602.42.2040............................             .50        1.102300
1602.42.4000............................             .33         .727518
1602.49.2000............................             .46        1.014116
1602.49.4000............................             .38         .837748
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    Dated: August 24, 1998.
Barry L. Carpenter,
Deputy Administrator, Livestock and Seed Program.
[FR Doc. 98-23228 Filed 8-27-98; 8:45 am]
BILLING CODE 3410-02-P