[Federal Register Volume 64, Number 82 (Thursday, April 29, 1999)]
[Rules and Regulations]
[Pages 23022-23025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10543]


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DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

50 CFR Part 14

RIN 1018-AE08


Importation, Exportation, and Transportation of Wildlife (User 
Fee Exemptions for Qualified Fur Trappers)

AGENCY: Fish and Wildlife Service, Interior.

ACTION: Final rule.

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SUMMARY: We, the U.S. Fish and Wildlife Service (Service) are revising 
our regulations providing for user fee collections from commercial 
importers and exporters of wildlife and wildlife products. We provide a 
fee exemption to trappers of fur-bearing wildlife operating small, low 
volume businesses engaged in wildlife trade on a small scale where 
there is relatively low cash flow, to individuals who trap fur-bearing 
wildlife from the wild as a hobby or to supplement their income and who 
do not deal in manufactured products or live animals as a primary means 
of income. The exemption from our inspection fee will apply to 
commercial importers and exporters based upon specific criteria, 
including country of origin, numbers of items, and permitting 
requirements. We therefore modify our user fee regulations to grant 
this relief to certain individuals and small businesses, meeting the 
outlined criteria, from the designated port inspection fees, non-
designated port administrative fees, and hourly minimums only. This 
rule still allows us to continue to collect data on fee collections in 
order to analyze the impact of user fees on small business for future 
decision making.

DATES: This rule is effective June 1, 1999.

ADDRESSES: Send correspondence concerning this rule to the Director, 
U.S. Fish and Wildlife Service, P.O. Box 3247, Arlington, Virginia 
22203-3247. The complete file for this final rule is available for 
public inspection, by appointment, during normal business hours.

FOR FURTHER INFORMATION CONTACT: Kevin R. Adams, Chief, Office of Law 
Enforcement, Fish and Wildlife Service, U.S. Department of the 
Interior, (703) 358-1949.

SUPPLEMENTARY INFORMATION:

Background

Summary of Public Participation

    We received 39 comments on the proposed rule published on January 
22, 1998 (63 FR 3298) 13 of which were submitted by individuals who we 
classified as non-consumptive users, i.e., those that do not hunt or 
trap wildlife. In addition, 11 comments were received from non-
consumptive organizations such as the Animal Welfare Institute, Animal 
Protection Institute, International Primate Protection League, The 
Humane Society of the United States, and The American Society For The 
Prevention Of Cruelty To Animals.
    We received four comments from individuals who were consumptive 
users of wildlife and four from consumptive user organizations such as 
the International Association of Fish and Wildlife Agencies, the Safari 
Club International, the Alaska Trappers Association, and the National 
Trappers Association. The states of Alaska, Illinois, Louisiana, and 
Nebraska also sent in comments to the proposed rule. We received three 
comments soliciting exemptions for tropical fish imports, and 
commercially raised quail and pheasant imports from Canada. We did not 
address these comments; they did not pertain to this rule.

Issues Raised in Public Comments, and Service Responses

    Comment: The Service needs the current fee structure as it is 
designed to allow the Service to pay for the inspection program. Any 
exemptions would begin to erode the Service's ability to conduct 
critical inspections of wildlife being imported and exported.
    Response: We acknowledge that the Service utilizes collected fees 
to support

[[Page 23023]]

its inspection program. However, the amounts charged for inspections on 
certain small businesses, such as low volume subsistence trappers in 
Alaska, may be prohibitive and cause an undue burden. We believe that 
proposed exemptions will allow low volume trappers to continue their 
business without undue hardship.
    Comment: Giving an exemption to low volume trappers of fur-bearing 
wildlife will only ``open the door'' for other small businesses to 
demand an exemption, thereby jeopardizing further the Service's ability 
to recoup inspection costs.
    Response: It is likely that other people who have businesses may 
feel the need to also ask for an exemption. We believe, however, that 
in the case of the low-volume trapper, the exemptions may be warranted 
due to:
     The nature of their small low-volume businesses engaged in 
wildlife trade on a small scale where there is relatively low cash 
flow;
     Individuals who trap fur-bearing wildlife from the wild as 
a hobby or to supplement their income;
     Those who do not deal in manufactured products or live 
animals as a primary means of income.
    Comment: The Service's criteria of 100 skins or less is meaningless 
because large volume shippers will manipulate numbers of furs and skins 
per shipment to illegally qualify for the exemption.
    Response: We have the ability to monitor the volume of importing 
and exporting by a business or individual and feel that we will be able 
to detect attempts to subvert the fee system by manipulating shipments.
    Comment: Why does the Service inspect Convention on International 
Trade of Endangered Species (CITES) furs that have already been 
inspected and tagged by the State of Alaska. Inspecting shipments of 
these furs upon export is redundant and does not need to be done.
    Response: We inspect shipments containing wildlife protected under 
CITES upon export and import to ensure that the proper permits are 
present, the shipment is properly declared, and for record keeping and 
reporting purposes. The State of Alaska places CITES tags on pelts 
taken in Alaska because most pelts are exported to Canada. However, 
having a CITES tag affixed to a pelt and the act of exporting are two 
separate issues requiring different actions. We also inspect imports 
and exports to ensure compliance with Service regulations.
    Comment: Why doesn't the Service maintain the old system of a 
$25,000 dollar value exemption for small businesses?
    Response: Since 1988, there have been four major studies of our 
import/export user fee policies. One recommendation consistently made 
in these studies was to revise our user fee policies and rates to 
recover the full cost of services provided to individuals and 
businesses. We therefore adjusted our fees for certain activities in 
order to recover the actual costs of services provided for all 
commercial import/export activities.
    Comment: The Service's proposed rule does not go far enough in 
exempting user fees. The Service should also remove the commercial 
import/export license requirement for trappers.
    Response: The studies that analyzed our import/export policies also 
recommended that we license all commercial importers and exporters of 
wildlife and wildlife products. As a result, we decided to license all 
commercial importers and exporters. We believe the $50 per year 
licensing requirement is fair and affordable and will not be waived.
    Comment: The upper limit of 100 furs per shipment is arbitrary and 
should be increased to 1000 per shipment because the price a trapper 
gets for furs and pelts is not high enough to offset the costs of 
inspection.
    Response: We chose the upper limit of 100 furs per shipment because 
we feel this number adequately represents a low volume of shipping 
activity. Accordingly, small businesses and individuals who qualify 
will not have to pay inspection fees in certain situations. Therefore, 
we believe the upper limit of 100 furs per shipment is appropriate.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 establishes as a principle 
of regulatory issuance that ``* * * agencies shall endeavor, consistent 
with the objectives of the rule and of applicable statutes, to fit 
regulatory and informational requirements to the scale of the business, 
organizations, and governmental jurisdictions subject to regulation.'' 
Therefore, in order to address the immediate concerns of small business 
and maintain consistency with the Regulatory Flexibility Act, we will 
initiate a new licensing and inspection fee system that will accomplish 
two objectives. First, the new system contained in this rule would 
grant immediate relief from the economic burden of the increased 
inspection fees, and/or administrative fees and hourly minimums, to 
importers and exporters of wildlife and wildlife products at designated 
ports, border or special ports, and nondesignated ports that meet 
specific criteria. Second, by continuing to require that all commercial 
importers and exporters be licensed, the new system would allow the 
Service to continue to monitor wildlife import/export activity in order 
to gather the data necessary to make future decisions on the true 
impact of our user fees on small businesses and certain individuals.

Authority Citation

    We will update the authority citation for this part to delete an 
obsolete reference at 31 U.S.C. 483(a) and to reflect the current 
United States Code citation of 31 U.S.C. 9701 regarding fees and 
charges for Government services.

Inspection Fee Exemption Criteria

    We amend the inspection fee system to establish specific criteria 
that we will use to determine if the inspection fee applies at the time 
of import or export. The revision uses distinctions that are already 
established in the regulation. We will use these distinctions to 
establish if the inspection fee applies to wildlife shipments at the 
time of import to or export from the United States. Shipments will have 
to meet several basic criteria in order to qualify for the inspection 
fee exemption.
    The basic exemption criteria are outlined as follows:
     The inspection fee exemption will only apply to shipments 
that do NOT require permits under 50 CFR parts 16 (Injurious wildlife), 
17 (Endangered and threatened wildlife and plants), 18 (Marine 
mammals), 21 (Migratory bird permits), or 23 (Endangered species 
convention). Those shipments that contain wildlife that require permits 
will not be eligible for any inspection fee exemption.
     The wildlife must have been lawfully taken from the wild 
in the United States, Canada, or Mexico, and imported or exported 
between the United States and Canada or Mexico. Shipments containing 
wildlife taken in any other country and imported or exported between 
any countries other than the United States, Canada, or Mexico will not 
be eligible for the inspection fee exemption. The wildlife shipment 
must be imported or exported by the person who took the wildlife from 
the wild, or by a member of that person's immediate family, provided, 
that the importer or exporter of record is licensed in accordance with 
50 CFR 14.91.
     The shipment must consist of raw fur, raw, salted, or 
crusted hides or skins, or separate parts thereof, and the shipment 
cannot exceed 100 raw furs,

[[Page 23024]]

raw, salted, crusted, hides or skins or separate parts thereof. We 
intend that this rulemaking provide financial relief from the burden of 
the inspection fees for small business and certain individuals who may 
be disproportionately affected.
    We believe a cutoff point of 100 raw furs, raw, salted, or crusted 
hides or skins, or separate parts thereof will adequately distinguish 
between small shippers disproportionately affected and those commercial 
wildlife dealers less impacted by the user fee.
    All of the primary criteria for the user fee exemption outlined 
above serve as a means of limiting the exemption application to certain 
individuals or small business, while at the same time maintaining the 
integrity and intent of the user fee rulemaking published on June 21, 
1996 (62 FR 31850). By using distinctions already drawn in the 
regulation, we believe that the criteria represent a balance between 
maintaining user fee revenues and providing small business economic 
relief.
    In addition to the primary criteria, we will use additional 
criteria, outlined below, to ensure that the user fee exemption is 
utilized by those intended and to allow for statistical tracking of the 
exemption's use. As stated, the importer or exporter of record who is 
shipping wildlife that otherwise meets the inspection fee exemption 
criteria will still have to obtain an Import/Export License from the 
Service at a cost of $50 annually (see 50 CFR part 14, subpart I). The 
raw fur, raw, salted or crusted hides or skins, or separate parts 
thereof cannot have been previously bought or sold if the inspection 
fee exemption is to apply. The fee exemption will not apply to 
manufactured products or live animals of any kind.
    The reason for the latter two criteria is that the fee exemption is 
intended to apply to small, low volume businesses engaged in wildlife 
trade on a small scale where there is relatively low cash flow, or to 
individuals who take wildlife from the wild as a hobby or to supplement 
their income and who do not deal in manufactured products or live 
animals as a primary means of income. We believe that wildlife traders 
buying and selling imported wildlife in the United States and those 
dealing in manufactured products or live animals require a higher level 
of oversight and are less impacted by the inspection fee.
    The importer or exporter whose wildlife shipments meet the user fee 
exemption criteria will still be required to pay overtime fees or 
designated port exception permit fees if applicable. If wildlife being 
shipped requires a Convention on International Trade in Endangered 
Species (CITES) permit, we will not exempt the shipment from the user 
fee due to the higher level of oversight we require on these shipments.

Certification

    In order for us to have some means of verifying that the raw furs, 
raw, salted or crusted hides or skins, or separate parts thereof are, 
in fact, taken from the wild by the licensee who is acting as importer/
exporter of record, or taken from the wild by a member of his or her 
immediate family, the licensee must sign a certification statement 
supplied by us at the time clearance is requested. The certification 
statement will ask that the licensee certify, subject to the penalties 
provided for under 18 U.S.C. 1001 for false or fraudulent statements, 
that he or she took the raw furs, raw, salted, or crusted hides or 
skins, or separate parts thereof from the wild or that they were taken 
from the wild by a member of that person's immediate family. We will 
consider the term ``immediate family'' to mean a licensee's spouse, 
parents, siblings, and children. We believe that extending the meaning 
to include grandparents, cousins, aunts, or uncles would compromise the 
intent of this rule. This signed certification statement will have to 
be presented to a Service officer at the time clearance is requested.
    We intend that this inspection fee exemption framework utilize 
existing regulatory language that grants various exemptions to 50 CFR 
part 14, including Sec. 14.15 and Sec. 14.62. In addition, 50 CFR part 
14 already exempts certain ``classes'' of wildlife from various 
regulatory requirements, including farm-raised fish from the designated 
port requirement on export, aquatic invertebrates of the Class 
Pelecypoda from the designated port and declaration requirement, and 
captive-bred furbearers from the marking requirement. We believe that 
these distinctions are consistent with the intent of the regulation.
    In summary, we will exempt commercial wildlife shipments from the 
designated port inspection fee and/or the nondesignated port 
administrative fee and hourly minimums, whichever applies, for 
shipments meeting the following criteria: no permits are required under 
50 CFR parts 16, 17, 18, 21, or 23; imports or exports are between the 
United States and Canada or Mexico of raw fur, raw, salted, or crusted 
hides or skins, or separate parts thereof, lawfully taken from the wild 
in the United States, Canada, or Mexico; imported or exported by the 
person taking the wildlife from the wild, or taken from the wild by a 
member of the importer or exporters' immediate family; provided, the 
importer or exporter of record is licensed; the shipment or any part 
thereof has not been previously bought or sold; the shipment does not 
exceed 100 raw furs, raw, salted, or crusted, hides or skins, or 
separate parts thereof; the shipment does not contain any manufactured 
products or live animals; overtime fees, if applicable, have been paid; 
and the importer or exporter has attached a certification statement 
stating that the shipment contains items taken from the wild by the 
importer/exporter of record or by a member of that person's immediate 
family.
    The following chart illustrates the commercial user fee charges at 
designated and nondesignated ports during normal working hours before 
the June 21, 1996, final rule, after the August 1, 1996, effective date 
of that final rule, and under this final rule, for comparison:

----------------------------------------------------------------------------------------------------------------
                                     Prior to June 21, 1996     After August 1, 1996     After September 1, 1998
               Fees                        Final Rule              effective date            effective date
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Designated Port..................  Under 25k/year No Charge.  $50/year License Fee....  $50/year License Fee.
                                   $125/year License Fee....  $55/shipment Inspection   $55/shipment Inspection
                                                               Fee.                      Fee if criteria not
                                                                                         met.
                                   $25/Shipment Inspection                              No Charge if criteria
                                    Fee.                                                 met.
Nondesignated Port...............  Under 25K/year No Charge.  $50/year License Fee....  $50/year License Fee.
                                   $125/year License Fee....  $55 Administrative Fee    $55 Administrative Fee
                                                               plus 2 hour minimum at    plus 2 hour minimum at
                                                               $20/hr ($40).             $20/hr ($40) if
                                                                                         criteria not met.
                                   $25/shipment                                         No Charge if criteria
                                    Administrative Fee plus                              met.
                                    2 hour minimum at $25/hr
                                    ($50).
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[[Page 23025]]

Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq

    This final rule affects only the requirement to pay an inspection 
fee for shipments and contains no information collections for which 
Office of Management and Budget approval is required under the 
Paperwork Reduction Act (44 U.S.C. 3501). Importers/exporters subject 
to this rule may be subject to the requirement to file a Declaration 
for Importation or Exportation of Fish or Wildlife (FWS form 3-177; OMB 
approval number 1018-0012; expiration date August 31, 2000). This rule 
does not change or affect the information collection requirements 
associated with the declaration form 3-177. An agency may not conduct 
or sponsor, and a person is not required to respond to a collection of 
information unless it displays a currently valid OMB control number.

Required Determinations

    The Service has determined that these regulations meet the 
applicable standards provided in Sections 3(a) and 3(b)(2) of Executive 
Order 12988. They do not unduly burden the judicial system. The 
regulations promote simplification and provide immediate relief from 
the economic burden of the increased inspection fees, and/or 
administrative fees and hourly minimums, to importers and exporters of 
wildlife and wildlife products at designated ports, border or special 
ports, and nondesignated ports that meet specific criteria.
    The Service has determined and certifies pursuant to the Unfunded 
Mandates Act, 2 U.S.C. 1501 et seq., that this rulemaking will not 
impose a cost of $100 million or more in any given year on local or 
State governments or private entities. In 1996, the total value of all 
wildlife shipments which may be eligible for the exemption was 
$700,734. Fees payable to the Service on these shipments would be 
reduced between $22,935 and $39,615 under the rule. Therefore, although 
user fees will be effected we anticipate that they will not be 
substantial. The rule will not create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency 
because it affects only Service actions.

Economic Effects

    The Service conducted an economic analysis of this rule. The 
declared value of all wildlife shipments requiring Service clearance in 
Fiscal Year 1995 was approximately $860,000,000. In 1996, the total 
value of all wildlife shipments which may be eligible for the proposed 
exemption was $700,734. Fees payable to the Service on these shipments 
would be reduced between $22,935 and $39,615 under the rule. The effect 
of this rule is much less than $100 million annually. We anticipate no 
substantial indirect economic effects so the effect of this rule is 
much less than $100 million annually. We do not expect the shipment 
volume to rise to a level that would generate a $100 million annual 
impact. This rulemaking was not subject to review by the Office of 
Management and Budget under Executive Order 12866.
    Accordingly, under the Regulatory Flexibility Act of 1980 (5 U.S.C. 
601 et seq.), this rulemaking will not have a significant economic 
effect on a substantial number of small entities, which include 
businesses, organizations, or governmental jurisdictions. This rule 
exempts small shippers from the Fish and Wildlife Service inspection 
fee and so represents an adaptation of the current fee structure to 
provide relief for small shippers, therefore, this rule will have a 
beneficial effect on such entities.

List of Subjects in 50 CFR Part 14

    Animal welfare, Exports, Fish, Imports, Labeling, Reporting and 
recordkeeping requirements, Transportation, Wildlife.

Regulation Promulgation

    For the reasons set out in the preamble, the Service amends Title 
50, Chapter I, subchapter B of the Code of Federal Regulations as set 
forth below:

PART 14--IMPORTATION, EXPORTATION, AND TRANSPORTATION OF WILDLIFE

    1. Revise the authority citation for Part 14 to read as follows:

    Authority: 16 U.S.C. 668, 704, 712, 1382, 1538(d)-(f), 1540(f), 
3371-3378, 4223-4244, and 4901-4916; 18 U.S.C. 42; 31 U.S.C. 9701.

    2. Amend Sec. 14.4 by revising the section heading and adding 
alphabetically the definitions ``we'' and ``you'' to read as follows:


Sec. 14.4  What terms do I have to understand?

* * * * *
    We means Fish and Wildlife Service or Service.
    You means licensee, or importer/exporter of record.
    3. Amend Sec. 14.94 by revising the section heading and revising 
paragraph (a) and adding paragraph (e) to read as follows:


Sec. 14.94  What fees apply to me?

    (a) License and inspection fees. We will impose a yearly fee for a 
license pursuant to Sec. 14.93. In addition, you must pay an inspection 
fee for each wildlife shipment imported into or exported from the 
United States at a designated port. If you import into or export from 
the United States wildlife shipments meeting the criteria outlined in 
paragraph (e) of this section, you are exempt from the designated port 
inspection fee, or nondesignated port administrative fee and hourly 
minimums, whichever apply. However, you must pay applicable overtime 
fees and permit fees.
* * * * *
    (e) Your wildlife shipments meeting all of the following criteria 
are exempt from the designated port inspection fee or nondesignated 
port administrative fee and hourly minimums:
    (1) The wildlife you are shipping does not require permits under 
parts 16, 17, 18, 21, 22, or 23 of this subchapter;
    (2) You are importing or exporting wildlife between the United 
States and Canada or Mexico;
    (3) The wildlife you are shipping consists of raw fur, raw, salted, 
or crusted hides or skins, or separate parts thereof, lawfully taken 
from the wild in the United States, Canada, or Mexico;
    (4) You, as the importer or exporter of record, or a member of your 
immediate family (your spouse, parents, siblings, and children), took 
the wildlife from the wild;
    (5) You are licensed in accordance with Sec. 14.91;
    (6) You have not previously bought or sold the wildlife or any part 
thereof being shipped;
    (7) Your shipment does not exceed 100 raw furs, raw, salted, or 
crusted hides or skins, or separate parts thereof;
    (8) Your shipment does not contain any manufactured products or 
live animals.
    (9) You certify that your shipment meets the criteria in this 
paragraph.
Stephen C. Saunders,
Acting Assistant Secretary for Fish and Wildlife and Parks.
[FR Doc. 99-10543 Filed 4-28-99; 8:45 am]
BILLING CODE 4310-55-P