[Federal Register Volume 64, Number 184 (Thursday, September 23, 1999)]
[Proposed Rules]
[Pages 51477-51479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24816]


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 Proposed Rules
                                                 Federal Register
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 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.
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  Federal Register / Vol. 64, No. 184 / Thursday, September 23, 1999 / 
Proposed Rules  

[[Page 51477]]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 130

[Docket No. 98-003-1]


Veterinary Services User Fees; Export Certificate Endorsements

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: We are proposing to establish a maximum user fee for the 
endorsement of export certificates for a single shipment of animals or 
birds that require verification of tests or vaccinations. Existing user 
fees for these endorsements are based on the number of animals or birds 
listed on the certificate and the number of tests or vaccinations that 
the importing country requires for those animals or birds. We are 
taking this action in response to requests from industry organizations 
and from our field and port employees to reconsider the fairness of the 
current user fees for large export shipments of animals. The proposed 
maximum user fee would result in lower user fees for large shipments, 
yet still recover the full cost of providing this service.

DATES: We invite you to comment on this docket. We will consider all 
comments that we receive by November 22, 1999.

ADDRESSES: Please send your comment and three copies to: Docket No. 98-
003-1, Regulatory Analysis and Development, PPD, APHIS, Suite 3C03, 
4700 River Road, Unit 118, Riverdale, MD 20737-1238.

Please state that your comment refers to Docket No. 98-003-1.
    You may read any comments that we receive on this docket in our 
reading room. The reading room is located in room 1141 of the USDA 
South Building, 14th Street and Independence Avenue, SW., Washington, 
DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through 
Friday, except holidays. To be sure someone is there to help you, 
please call (202) 690-2817 before coming.
    APHIS documents published in the Federal Register, and related 
information, including the names of organizations and individuals who 
have commented on APHIS rules, are available on the Internet at http://
www.aphis.usda.gov/ppd/rad/webrepor.html.

FOR FURTHER INFORMATION CONTACT: Ms. Donna Ford, Section Head, 
Financial Systems and Services Branch, BASE, MRPBS, APHIS, 4700 River 
Road Unit 54, Riverdale, MD 20737-1232; (301) 734-8351.

SUPPLEMENTARY INFORMATION:

Background

    User fees to reimburse the Animal and Plant Health Inspection 
Service (APHIS) for the costs of providing veterinary diagnostic 
services and import- and export-related services for live animals and 
birds and animal products are contained in 9 CFR part 130 (referred to 
below as the regulations). Section 130.20 lists user fees we charge for 
endorsing certificates for animals and birds exported from the United 
States. Importing countries often require these certificates to show 
that an animal or bird has tested negative to specific animal diseases 
or that an animal or bird has not been exposed to specific animal 
diseases. The endorsement indicates that APHIS has reviewed a 
certificate and believes it to be accurate and reliable. The steps 
associated with endorsing an export certificate may include reviewing 
supporting documentation; confirming that the importing country's 
requriements have been met; verifying laboratory test results for each 
animal if tests are required; reviewing any certification statements 
required by the importing country; and endorsing, or signing, the 
certificates. Our user fees are intended to cover all of the costs 
associated with endorsing the certificates.
    Currently, under Sec. 130.20(b), APHIS charges different user fees 
to endorse export certificates that require us to verify tests or 
vaccinations. The user fee varies according to the number of animals or 
birds listed on the certificate and the number of tests or 
vaccinations. Currently, there is no maximum user fee; for each 
additional animal or bird listed on the certificate the user fee 
increases.
    We propose to set a maximum user fee to cover the cost of APHIS 
endorsement of export certificates that require us to verify tests or 
vaccinations for a single shipment of animals or birds. We are taking 
this action based on a review of our user fees for endorsing export 
certificates for large shipments. We reviewed our fees at the request 
of the Livestock Exporters Association. The Livestock Exporters 
Association suggested that our current user fees were too high for 
large shipments of animals when the export certificates require 
verification of tests or vaccinations.
    Currently, the flat rate user fee set out in Sec. 130.20(b)(1) for 
endorsing export certificates is $52.50, $64.75, or $75.75 per 
endorsement for the first animal or bird on the certificate plus $3.00, 
$5.00, or $6.00 for each additional animal or bird covered by the 
certificate. The user fees vary based on the number of tests or 
vaccinations that we are required to verify. When the importing country 
requires one or two tests, the user fee is $52.50 for the first animal 
or bird and $3.00 for each additional animal or bird. For example, if 
we must verify one or two tests or vaccinations per animal or bird for 
a shipment of 600 animals or birds, the user fee would be $1,849.50 
($52.50 + ($3.00  x 599)). Using the hourly rate user fee of $56.00 per 
hour, the flat rate user fee of $1,849.50 would cover over 31 hours of 
time for one employee to provide this service during normal work hours. 
Based on surveys of the veterinary medical officers who commonly do 
this work, we have determined that it rarely takes more than 12 hours. 
Therefore, we propose a maximum charge of 12 times the hourly rate user 
fee. The result would be a maximum user fee of $672. In the example 
above, the proposed maximum user fee would apply as it is lower than 
the calculated user fee charge of $1,849.50.
    In general, we calculate our user fees to recover the average cost 
of providing our services. When we originally calculated the export 
certificate user fees, we based them on small export shipments, as 
there were very few large shipments, and we did not consider maximum 
charges. Due to changes in international trade, U.S. exporters have

[[Page 51478]]

begun exporting large shipments of animals.
    There are both fixed and variable costs involved with endorsing 
export certificates. The current user fee structure takes these fixed 
and variable costs into consideration. However, the marginal costs per 
animal or bird decreases as the number of animals or birds increases. 
Current user fees for endorsing export certificates that require us to 
verify tests and vaccinations do not take into consideration economies 
of scale. Based on our review of the services required to endorse 
export certificates for large shipments, we have determined that a 
maximum user fee, based on 12 times the hourly rate user fee listed in 
Sec. 130.21 of the regulations, would recover our costs for services 
provided to endorse export health certificates requiring the 
verification of tests or vaccinations for large shipments. The total 
charge to the customer would be significantly less than the charge 
under our current user fee for large shipments of animals or birds.
    We considered several alternatives, including setting a different 
maximum charge for each of the three user fees listed in 
Sec. 130.20(b)(1). Having one maximum charge for this section appeared 
to be adequate to recover the costs for our services and be less 
burdensome administratively.

Executive Order 12866 and Regulatory Flexibility Act

    This proposed rule has been reviewed under Executive Order 12866. 
The rule has been determined to be not significant for the purposes of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget.
    We propose to revise our user fees to implement a maximum user fee 
for the endorsement of export certificates that require the 
verification of tests or vaccinations for the animals or birds on the 
certificate. The proposed maximum user fee would be 12 times the hourly 
rate user fee listed in Sec. 130.21 of the regulations.
    User fees for the endorsement of export certificates would continue 
to be calculated based on the current user fees. The proposed maximum 
user fee would be used whenever the calculated user fee was higher than 
the proposed maximum user fee. This would benefit exporters with large 
shipments. The following table compares the proposed maximum user fee 
to the charges for endorsing export certificates for large shipments 
based on current user fees.

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                                                                                  Current charge
                                                                                     for large       Proposed
      Number of tests or vaccinations                  Current user fee           shipment  (300   maximum user
                                                                                     animals)         fee \1\
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1 or 2.....................................  $52.50 (first animal) $3.00 (each           $949.50            $672
                                              additional).
3 to 6.....................................  64.75 (first animal) 5.00 (each            1,559.75             672
                                              additional).
7 or more..................................  75.75 (first animal) 6.00 (each            1,869.75            672
                                              additional).
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\1\ Based on 12 times $56 (the current hourly rate user fee).

    In fiscal year 1998, APHIS issued 6,245 export certificates that 
required the verification of tests or vaccinations. Of these, only 80 
(1.28 percent) would have benefitted from the proposed maximum user 
fee. Using the proposed maximum user fee would cost less than the 
current user fees for any export certificates for a single shipment of:
     208 or more animals with 1 or 2 tests,
     123 or more animals with 3 to 6 tests, or
     101 or more animals with 7 or more tests.
    The proposed maximum user fee could affect some exporters of live 
animals or birds. Any exporters of live animals or birds whose total 
sales are less than $5 million annually is a small entity according to 
the Small Business Administration's criteria. The number of entities 
exporting live animals or birds that would qualify as small entities 
under this definition cannot be determined. Data from the 1995 Bureau 
of the Census indicates the majority of agricultural entities that deal 
in less valuable animals, such as grade animals, can be considered 
small entities. This may not be the case for entities dealing 
exclusively in more valuable animals, such as purebred or registered 
animals.
    Adopting the proposed rule should have a minimal effect on 
exporters, whether small or large. Only 1.28 percent of the export 
certificates requiring the verification of tests or vaccinations that 
APHIS issued in FY 1998 would have been covered by the maximum user fee 
for those endorsements. For those entities that do experience a change 
in the amount, the difference would be a lower charge for the 
endorsement.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action would 
not have a significant economic impact on a substantial number of small 
entities.

Executive Order 12372

    This program/activity is listed in the Catalog of Federal Domestic 
Assistance under No. 10.025 and is subject to Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials. (See 7 CFR part 3015, subpart V.)

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. If this proposed rule is adopted: (1) All State 
and local laws and regulations that are inconsistent with this rule 
will be preempted; (2) no retroactive effect will be given to this 
rule; and (3) administrative proceedings will not be required before 
parties may file suit in court challenging this rule.

Paperwork Reduction Act

    This proposed rule contains no new information collection or 
recordkeeping requirements under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501 et seq.).

Regulatory Reform

    This action is part of the President's Regulatory Reform 
Initiative, which, among other things, directs agencies to remove 
obsolete and unnecessary regulations and to find less burdensome ways 
to achieve regulatory goals.

List of Subjects in 9 CFR Part 130

    Animals, Birds, Diagnostic reagents, Exports, Imports, Poultry and 
poultry products, Quarantine, Reporting and recordkeeping requirements, 
Tests.
    Accordingly, we propose to amend 9 CFR part 130 as follows:

PART 130--USER FEES

    1. The authority citation for part 130 would be revised to read as 
follows:

    Authority: 5 U.S.C. 5542; 7 U.S.C. 1622; 19 U.S.C. 1306; 21 
U.S.C. 102-105, 111, 114, 114a, 134a, 134c, 134d, 134f, 136, and 
136a; 31 U.S.C. 3701, 3716, 3717, 3719, and 3720A; 7 CFR 2.22, 2.80, 
and 371.2(d).


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    2. In Sec. 130.20, paragraph (b)(1) introductory text would be 
revised to read as follows:


Sec. 130.20  User fees for endorsing export health certificates.

* * * * *
    (b)(1) User fees for the endorsement of export health certificates 
that require the verification of tests or vaccinations are listed in 
the following table. The user fees apply to each export health 
certificate 6 endorsed for animals and birds depending on 
the number of animals or birds covered by the certificate and the 
number of tests required. However, there will be a maximum user fee of 
12 times the hourly rate user fee listed in Sec. 130.21(a) of this part 
for any single shipment. The person for whom the service is provided 
and the person requesting the service are jointly and severally liable 
for payment of these user fees in accordance with the provisions in 
Secs. 130.50 and 130.51.
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    \6\ An export health certificate may need to be endorsed for an 
animal being exported from the United States if the country to which 
the animal is being shipped requires one. APHIS endorses export 
health certificates as a service.
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* * * * *
    Done in Washington, DC, this 17th day of September 1999.
Bobby R. Acord,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 99-24816 Filed 9-22-99; 8:45 am]
BILLING CODE 3410-34-P