[Federal Register Volume 63, Number 191 (Friday, October 2, 1998)]
[Proposed Rules]
[Pages 52987-52990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26281]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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.
 
 ========================================================================
 

  Federal Register / Vol. 63, No. 191 / Friday, October 2, 1998 / 
Proposed Rules  

[[Page 52987]]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 800

RIN 0580-AA66


Fees for Official Inspection and 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 fee increases to generate the additional revenue 
required to recover the increased operational costs resulting from a 
projected approximate 3.6 percent January 1999 cost-of-living increase 
to Federal salaries for official inspection and weighing services 
performed in the United States under the United States Grain Standards 
Act (USGSA), as amended. An approximate 3.6 percent increase is being 
proposed for all hourly rates and certain unit rates on tests performed 
at both an applicant's facility and other than an applicant's facility. 
In addition, an average increase of 1.2 percent is being proposed to 
recover the salary and benefits portion of the administrative tonnage 
fee.

DATES: Written comments must be submitted on or before December 1, 
1998.

ADDRESSES: Written comments must be submitted to George Wollam, USDA, 
GIPSA, ART, 1400 Independence Avenue, SW, Stop 3649, Washington, D.C. 
20250-3649, or faxed to (202) 720-4628. Comments may also be sent by 
electronic mail or Internet to: [email protected]. 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, D.C. 20250-3649 (7 CFR 1.27 (b)).

FOR FURTHER INFORMATION CONTACT: George Wollam at 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 Sec. 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 the 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 GIPSA inspection 
and weighing services do not meet the requirements for small entities. 
GIPSA is required by statute to make services available and to recover 
costs of providing such services, as nearly as practicable.
    The proposed fee revisions are primarily applicable 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 GIPSA 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. Some users of the service who 
request non-mandatory official inspection and weighing services (most 
of which represent appeals) at other than export locations could be 
considered small entities. However, these fee increases merely reflect 
the cost-of-living increases in Federal salaries for hourly, certain 
unit fees, and that portion of the administrative tonnage fee.
    In fiscal year 1997, GIPSA's obligations were $22,972,026 with 
revenue of $21,527,695, resulting in a loss of $1,444,331 and retained 
earnings of negative $419,417. In fiscal year 1998, as of July 31, 
1998, GIPSA's obligations were $19,151,659 with revenue of $18,254,972 
and retained earnings of negative $1,337,572. GIPSA cannot absorb the 
approximate 3.6 percent increase in salary costs with the existing 
deficit in retained earnings. Additionally, GIPSA will continue to 
monitor its costs to improve operating efficiencies, and adopt cost 
saving measures, where possible and practicable.
    The increase in fees will not have a significant impact on either 
small or large entities. GIPSA estimates an annual increase of $550,000 
in revenue based on a work volume of 74,045,472 metric tons, the 
equivalent to fiscal year 1997.

Information Collection and Recordkeeping Requirements

    In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection and recordkeeping requirements 
in Part 800 have been previously 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, GIPSA's costs for performing these 
services, including related administrative and supervisory costs.
    The proposed fee increases generate the additional revenue required 
to recover operational costs created by a January 1999 cost-of-living 
increase to Federal salaries. The average salary increase for GIPSA 
employees in calendar year 1999 is approximately 3.6 percent. This 
proposed action is being taken to ensure that the service fees charged 
by GIPSA generate adequate

[[Page 52988]]

revenue to cover the additional costs created by the January 1999 
Federal salary increase.
    The current USGSA fees were published in the Federal Register on 
June 16, 1998 (63 FR 32713), and became effective on July 1, 1998. In 
addition, GIPSA published a revised fee schedule on June 30, 1998 (63 
FR 35502), effective July 1, 1998, to establish fees for corn oil, 
protein, and starch testing services. The hourly fees covered by this 
proposal generate revenue to cover the basic salary, benefits, and 
leave for those employees providing direct service delivery. The 
current hourly fees are:

----------------------------------------------------------------------------------------------------------------
                                       Monday to Friday   Monday to Friday
                                         (6 a.m. to 6       (6 p.m. to 6    Saturday, Sunday,       Holidays
                                            p.m.)              a.m.)          and over time
----------------------------------------------------------------------------------------------------------------
1-year contract.....................             $24.40             $26.40             $34.40             $41.40
6-month contract....................              26.80              28.60              36.60              47.80
3-month contract....................              30.60              31.60              39.80              49.40
Noncontract.........................              35.40              37.40              45.40              55.80
----------------------------------------------------------------------------------------------------------------

    GIPSA has also identified certain unit fees, for services not 
performed at an applicant's facility, that contain direct labor costs. 
Further, GIPSA has identified those costs associated with salaries and 
benefits that are covered by the administrative metric tonnage fee. The 
3.6 percent cost-of-living increase to salaries and benefits covered by 
the administrative tonnage fee 1 results in an average 
overall increase of an average of 1.2 percent to the administrative 
tonnage fee. Other associated costs, including non salary related 
overhead, are collected through the fees contained in the fee schedule 
and are not included under this proposal.
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    \1\ The per metric ton administrative charge recovers the 
indirect costs and administrative costs of FGIS field offices and 
headquarters, including the salaries and benefits for office 
management and support staff. 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 7,000,0001 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.
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    The amount of revenue collected as a result of this proposal is a 
direct function of the work volume. GIPSA estimates an increase of 
$550,000 in revenue based on a work volume of 74,045,472 metric tons, 
the equivalent to fiscal year 1997. If GIPSA foregoes this adjustment, 
GIPSA will incur a net loss equivalent approximately to the 3.6 percent 
increase in salaries for every hour paid to an employee.
    In fiscal year 1997, GIPSA's obligations were $22,972,026 with 
revenue of $21,527,695, resulting in a loss of $1,444,331 and retained 
earnings of negative $419,417. In fiscal year 1998, as of July 31, 
GIPSA's obligations were $19,151,659 with revenue of $18,254,972 and 
retained earnings of negative $1,337,572. GIPSA cannot afford to absorb 
an additional $550,000 loss due to the approximate 3.6 percent increase 
in salary costs with the existing deficit in retained earnings. 
Additionally, GIPSA will continue to monitor its costs to improve 
operating efficiencies, and adopt cost saving measures, where possible 
and practicable.

Proposed Action

    GIPSA proposes to apply an approximate 3.6 percent increase to 
those hourly rates, certain unit rates, and an average 1.2 percent 
increase to the administrative tonnage fee in 7 CFR 800.71, Table 1--
Fees for Official Services Performed at an Applicant's Facility in an 
Onsite GIPSA Laboratory; Table 2--Services Performed at Other Than an 
Applicant's Facility in a GIPSA Laboratory; and Table 3, Miscellaneous 
Services.
    In reviewing the fee schedule to identify fees that would require 
an approximate 3.6 percent increase, GIPSA has identified several fees 
that, under the current fee schedule, are at levels that would not 
require any change. Accordingly, these fees would remain the same at 
this time.

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 revised 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 is revised 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\
----------------------------------------------------------------------------------------------------------------
                                                          Monday to Friday
                                       Monday to Friday     (6 p.m. to 6    Saturday, Sunday,       Holidays
                                      (6 a.m to 6 p.m.)        a.m.)         and Overtime \2\
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    (1) Inspection and Weighing Services Hourly Rates (per service representative).
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1-year contract.....................             $25.20             $27.20             $35.40             $42.60
6-month contract....................              27.60              29.40              37.60              49.40
3-month contract....................              31.60              32.60              41.00              51.00
Noncontract.........................              36.60              38.60              46.80              57.60
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    (2) Additional Tests (cost per test, assessed in addition to the
 hourly rate).\3\
------------------------------------------------------------------------
(i) Aflatoxin (other than Thin Layer Chromatography).......        $8.50
(ii) Aflatoxin (Thin Layer Chromatography method)..........        20.00
(iii) Corn oil, protein, and starch (one or any
 combination)..............................................         1.50

[[Page 52989]]

(iv) Soybean protein and oil (one or both).................         1.50
(v) Wheat protein (per test)...............................         1.50
(vi) Sunflower oil (per test)..............................         1.50
(vii) Vomitoxin (qualitative)..............................         7.50
(viii) Vomitoxin (quantitative)............................        12.50
(ix) Waxy corn (per test)..................................         1.50
(x) Fees for other tests not listed above will be based on
 the lowest noncontract hourly rate........................
(xi) Other services:.......................................
    (a) Class Y Weighing (per carrier):....................
        (1) Truck/container................................          .30
        (2) Railcar........................................         1.25
        (3) Barge..........................................         2.50
------------------------------------------------------------------------
     (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).
------------------------------------------------------------------------
    (i) All outbound carriers (per-metric-ton) \4\:
        (a) 1-1,000,000....................................      $0.1014
        (b) 1,000,001-1,500,000............................       0.0925
        (c) 1,500,001-2,000,000............................       0.0500
        (d) 2,000,001-5,000,000............................       0.0370
        (e) 5,000,001-7,000,000............................       0.0200
        (f) 7,000,000+.....................................      0.0090
\1\ Fees apply to original inspection and weighing, reinspection, and
  appeal inspection service and 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).
\2\ Overtime rates will be assessed for all hours in excess of 8
  consecutive hours that result from an applicant scheduling or
  requesting service beyond 8 hours, or if requests for additional
  shifts exceed existing staffing.
\3\ Appeal and reinspection services will be assessed the same fee as
  the original inspection service.
\4\ The administrative fee is assessed on an accumulated basis beginning
  at the start of the Service's fiscal year (October 1 each year).


Table 2.--Services Performed at Other Than an Applicant's Facility in an
                           FGIS Laboratory 1,2
(1) Original Inspection and Weighing (Class X) Services:
    (i) Sampling only (use hourly rates from Table 1):
    (ii) Stationary lots (sampling, grade/factor, &
     checkloading):
        (a) Truck/trailer/container (per carrier)..............   $18.10
        (b) Railcar (per carrier)..............................    27.60
        (c) Barge (per carrier)................................   174.35
        (d) Sacked grain (per hour per service representative
         plus an administrative fee per hundredweight) (CWT)...     0.02
    (iii) Lots sampled online during loading (sampling charge
     under (i) above, plus):
        (a) Truck/trailer container (per carrier)..............     9.85
        (b) Railcar (per carrier)..............................    19.10
        (c) Barge (per carrier)................................   108.10
        (d) Sacked grain (per hour per service representative
         plus an administrative fee per hundredweight) (CWT)...     0.02
    (iv) Other services
        (a) Submitted sample (per sample--grade and factor)....    10.60
        (b) Warehouseman inspection (per sample)...............    17.60
        (c) Factor only (per factor--maximum 2 factors)........     4.60
        (d) Checkloading/condition examination (use hourly
         rates from Table 1, plus an administrative fee per
         hundredweight if not previously assessed) (CWT).......     0.02
        (e) Reinspection (grade and factor only. Sampling
         service additional, item (i) above)...................    11.60
        (f) Class X Weighing (per hour per service
         representative).......................................    48.00
        (v) Additional tests (excludes sampling):
        (a) Aflatoxin (per test--other than TLC method)........    25.60
        (b) Aflatoxin (per test--TLC method)...................   101.60
        (c) Corn oil, protein, and starch (one or any
         combination)..........................................     8.10
        (d) Soybean protein and oil (one or both)..............     8.10
        (e) Wheat protein (per test)...........................     8.10
        (f) Sunflower oil (per test)...........................     8.10
        (g) Vomitoxin (qualitative)............................    26.10
        (h) Vomitoxin (quantitative)...........................    31.10
        (i) Waxy corn (per test)...............................     9.35
        (j) Canola (per test--00 dip test).....................     9.35
        (k) Pesticide Residue Testing \3\......................
        (1) Routine Compounds (per sample).....................   200.00
        (2) Special Compounds (per service representative).....   100.00
        (l) Fees for other tests not listed above will be based
         on the lowest noncontract hourly rate from Table 1....
(2) Appeal inspection and review of weighing service\4\:
    (i) Board Appeals and Appeals (grade and factor)...........    76.60
        (a) Factor only (per factor--max 2 factors)............    39.60
        (b) Sampling service for Appeals additional (hourly
         rates from Table 1)
    (ii) Additional tests (assessed in addition to all other
     applicable fees):
        (a) Aflatoxin (per test, other than TLC)...............    25.85
        (b) Aflatoxin (TLC)....................................   111.10
        (c) Corn oil, protein, and starch (one or any
         combination)..........................................    15.85

[[Page 52990]]

        (d) Soybean protein and oil (one or both)..............    15.85
        (e) Wheat protein (per test)...........................    15.85
        (f) Sunflower oil (per test)...........................    15.85
        (g) Vomitoxin (per test--qualitative)..................    36.10
        (h) Vomitoxin (per test--quantitative).................    41.10
        (i) Vomitoxin (per test--HPLC Board Appeal)............   128.00
        (j) Pesticide Residue Testing \3\:
            (1) Routine Compounds (per sample).................   200.00
            (2) Special Compounds (per service representative).   100.00
        (k) Fees for other tests not listed above will be based
         on the lowest noncontract hourly rate from Table 1
    (iii) Review of weighing (per hour per service
     representative)...........................................    69.60
(3) Stowage examination (service-on-request) \3\:
    (i) Ship (per stowage space) (minimum $275 per ship).......    50.50
    (ii) Subsequent ship examinations (same as original)
     (minimum $175 per ship)
    (iii) Barge (per examination)..............................    40.50
    (iv) All other carriers (per examination)..................   15.50
------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, reinspection, and
  appeal inspection service and 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).
\2\ An additional charge will be assessed when the revenue from the
  services in Schedule A, Table 2, does not cover what would have been
  collected at the applicable hourly rate as provided in Sec.  800.72
  (b).
\3\ If performed outside of normal business, 1\1/2\ times the applicable
  unit fee will be charged.
\4\ If, at the request of the Service, a file sample is located and
  forwarded by the Agency for an official agency, the Agency may, upon
  request, be reimbursed at the rate of $2.50 per sample by the Service.


                  Table 3.--Miscellaneous Services \1\
------------------------------------------------------------------------
(1) Grain grading seminars (per hour per service
 representative) \2\...........................................   $48.00
(2) Certification of diverter-type mechanical samplers (per
 hour per service representative) \2\..........................    48.00
(3) Special weighing services (per hour per service
 representative) \2\...........................................
    (i) Scale testing and certification........................    48.00
    (ii) Evaluation of weighing and material handling systems..    48.00
    (iii) NTEP Prototype evaluation (other than Railroad Track
     Scales)...................................................    48.00
    (iv) NTEP Prototype evaluation of Railroad Track...........    48.00
    Scales (plus usage fee per day for test car)...............   110.00
    (v) Mass standards calibration and reverification..........    48.00
    (vi) Special projects......................................    48.00
(4) Foreign travel (per day per service representative)........   435.00
(5) Online customized data EGIS service........................
    (i) One data file per week for 1 year......................   500.00
    (ii) One data file per month for 1 year....................   300.00
(6) Samples provided to interested parties (per sample)........     2.50
(7) Divided-lot certificates (per certificate).................     1.50
(8) Extra copies of certificates (per certificate).............     1.50
(9) Faxing (per page)..........................................     1.50
(10) Special mailing (actual cost).............................
(11) Preparing certificates onsite or during other than normal
 business hours (use hourly rates from Table 1) ...............
------------------------------------------------------------------------
\1\ Any requested service that is not listed will be performed at $48.00
  per hour.
\2\ Regular business hours--Monday thru Friday--service provided at
  other than regular hours charged at the applicable overtime hourly
  rate.

    Dated: September 28, 1998.
David R. Shipman,
Acting Administrator, Grain Inspection, Packers and Stockyard 
Administration.
[FR Doc. 98-26281 Filed 10-1-98; 8:45 am]
BILLING CODE 3410-EN-P