[Federal Register Volume 65, Number 43 (Friday, March 3, 2000)]
[Proposed Rules]
[Pages 11483-11485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5162]


 ========================================================================
 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. 65, No. 43 / Friday, March 3, 2000 / Proposed 
Rules  

[[Page 11483]]



DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 20

RIN 0551-AA51


Export Sales Reporting Requirements

AGENCY: Foreign Agricultural Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend the Export Sales Reporting 
Requirements Regulation to add certain beef and pork to the list of 
commodities subject to this Regulation. Under this proposed rule, 
exporters would be required to report on a weekly basis information 
concerning the quantity, country of destination, and marketing period 
of shipment for their export sales. Information collected would be 
aggregated and included in the weekly ``U.S. Export Sales'' report 
published by the Foreign Agricultural Service (FAS).

DATE: Comments on the proposed rule should be received on or before May 
2, 2000, to be assured of consideration.

ADDRESSES: Comments should be submitted in writing to the Export Sales 
Reporting Staff, Stop 1025, U.S. Department of Agriculture, 1400 
Independence Avenue SW, Washington, DC 20250-1025 or e-mailed to 
[email protected]. All comments received will be available for 
public inspection in room 5965-S during normal business hours.

FOR FURTHER INFORMATION CONTACT: David Williams, Import Policies and 
Programs Division, Stop 1021, U.S. Department of Agriculture, 1400 
Independence Avenue, SW, Washington, D.C. 20250-1021, or telephone 
at(202) 720-3273, or e-mail at [email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12372

    This program is not subject to the provision of Executive Order 
12372, which requires intergovernmental consultation with State or 
local officials (See notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983).

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988. 
The provisions of this proposed rule would not have preemptive effect 
with respect to any state or local laws, regulations, or policies which 
conflict with such provisions or which otherwise impede their full 
implementation. The proposed rule would not have retroactive effect. 
Administrative proceedings are not required before parties may seek 
judicial review.

Executive Order 12866

    This proposed rule is issued in conformance with Executive Order 
12866. It has been determined significant for the purposes of E.O. 
12866 and, therefore, has been reviewed by the Office of Management and 
Budget (OMB).

Regulatory Flexibility Act

    The proposed rule should not have a significant economic impact on 
a substantial number of small entities. Although numerous exporters of 
meat and meat products operate small businesses, the data required 
under the proposed rule are routinely maintained during the normal 
course of export sales contracting business activity. A copy of this 
proposed rule has been sent to the Chief Counsel, Office of Advocacy, 
U.S. Small Business Administration.

Paperwork Reduction Act

    In accordance with provisions of the Paperwork Reduction Act of 
1995, the Department revised the information collection approved by the 
Office of Management and Budget (OMB) to support this proposed rule. 
The expiration date for OMB approval of this information collection, 
under OMB control number 0551-0007, is September 30, 2001. The 
information collection requirements contained in 7 CFR part 20 (the 
Regulation) are necessary to implement the mandatory export sales 
reporting requirements of 602 of the Agricultural Trade Act of 1978, as 
amended (7 U.S.C. 7512). The proposed rule would amend the Regulation 
to require weekly reporting of export sales contracts for muscle cuts 
of fresh, chilled, or frozen beef and pork. All data reported are 
aggregated and published in compilation form to protect business 
confidential information. It was estimated that the proposed rule would 
add an additional 125 exporting firms to the reporting requirements, 
increasing the total to 424 firms. The inclusion of certain meat 
products under the Regulation was estimated to increase the annual 
burden by 8,963 hours (from 21,723 hours to 30,686 hours) for 
collecting and submitting the weekly reports and recordkeeping 
activities. Copies of the current information collection may be 
obtained from Kimberly Chisley, the Agency Information Collection 
Coordinator, at (202) 720-2568 or e-mail at [email protected]. 
Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (b) the accuracy of the agency's estimate of the burden of the 
proposed collection of information; (c) ways to enhance the quality, 
utility and clarity of the information to be collected; and (d) ways to 
minimize the burden of collection of information to those who are to 
respond, including through use of appropriate automated, electronic, 
mechanical or other technological collection techniques or other form 
of information technology. Comments on the information collection 
should be sent to the Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10202, New Executive Office 
Building, Washington, DC 20503. Attention: Desk Officer for USDA/FAS. 
Comments on the issues covered by the Paperwork Reduction Act should be 
submitted no later than 60 days from the date of publication to be 
assured of consideration.
    Section 913(b)(1) of Pub. L. 106-78 (the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2000) requires that the Secretary implement a 
streamlined electronic system for collecting export sales and shipments 
data, in the least intrusive manner possible, for fresh or frozen 
muscle cuts of meat food products, and develop a data-reporting program 
to disseminate summary information in a timely manner. The adoption of 
electronic collection techniques should

[[Page 11484]]

facilitate information collection and reduce the annual reporting 
burden. The Department is working on developing electronic reporting 
forms for submission of information on fresh, chilled, or frozen muscle 
cuts of beef and pork products covered by this proposed rule. Prior to 
implementing electronic reporting, the Department would request OMB 
approval of the electronic forms developed and issue a Federal Register 
notice soliciting public comments. All comments will be considered in 
developing the final rule, and will also become a matter of public 
record.

Background

Authority

    Section 602 of the Agricultural Trade Act of 1978, as amended, 
requires the weekly reporting of information pertaining to the contract 
for export sale of certain specified agricultural commodities and other 
commodities that may be designated by the Secretary. Individual weekly 
reports submitted shall remain confidential in accordance with 
Sec. 602, and shall be compiled and published in compilation form each 
week following the week of reporting. Any person who knowingly fails to 
make a report shall be fined not more than $25,000 or imprisoned for 
not more than 1 year, or both. Regulations at 7 CFR part 20 implement 
the weekly reporting requirements, and prescribe a system for reporting 
information pertaining to contracts for export sales. Appendix 1 to the 
Regulation lists all commodities that are subject to the export sales 
reporting requirements.

Proposed Export Sales Reporting Requirement for Meat

    An Advance Notice of Proposed Rulemaking (ANPR) was published on 
November 14, 1996 (61 FR 58343-58345) requesting public comments on a 
proposal to amend 7 CFR part 20 to require weekly export sales 
reporting for meat and meat products. In response to the ANPR, public 
comments were received from 57 entities, including firms, trade 
associations, and individuals. The majority of the comments (36) were 
from the domestic poultry industry which, with the exception of one 
commentor, opposed reporting. The poultry industry's opposition was 
based on the high degree of vertical integration in the industry, the 
widespread use of grower contracts, and concerns about possible 
disclosure of sensitive proprietary business information related to 
market price and buyer identification. Comments received from beef and 
pork producers supported more timely reporting and release of export 
data. Export sales were viewed as an important indicator of future 
demand for cattle and hogs that meet beef and pork export 
specifications, and certain commentors favored reporting of contract 
sales prices. Other commentors recommended collection of information on 
aggregate export sales of selected categories of meat and meat 
products. One commentor recommended that monthly outstanding export 
sales for 6 months forward be updated weekly. Certain processors and 
packers commented that reporting of export sales data would not be as 
great a benefit to producers as collecting export data by country of 
destination from export inspection certificates on broad categories of 
meat. Most commentors opposed disclosure of information on sales 
contract prices because of market sensitivity.
    Subsequent to the ANPR, 921 of Pub. L. 106-78 amended 602(a)(1) of 
the Agricultural Trade Act of 1978 (7 U.S.C. 5712(a)(1)) by adding 
``beef'' to the list of specified commodities for which all exporters 
shall report weekly export sales reporting information. The proposed 
rule would provide that beef reporting under 602 of the Agricultural 
Trade Act of 1978, as amended, be limited to fresh, chilled, or frozen 
muscle cuts of beef. This information would provide key market data to 
producers on meat cuts which constitute the bulk of U.S. exports and 
provide relevant foreign market demand information. Limiting reporting 
to muscle cuts would impose the least burdensome level of reporting on 
exporters while achieving the objectives of the export sales reporting 
requirements program.
    As stated above, 913(b)(1) of Pub. L. 106-78 requires that the 
Secretary also implement a streamlined electronic system for collecting 
export sales and shipments data, in the least intrusive manner 
possible, for fresh or frozen muscle cuts of meat food products, and 
develop a data-reporting program to disseminate summary information in 
a timely manner. This proposed rule would include the reporting of 
fresh, chilled, and frozen muscle cuts of meat required by 913(b)(1) of 
Pub. L. 106-78 under 7 CFR part 20. Under this regulation, data related 
to the quantity, destination, and marketing year of shipments are 
collected and released on a weekly basis reflecting the ``outstanding 
commitments'' of the specified commodities for export. New outstanding 
quantities are established each week by adding the new export sales 
activity to the previous outstanding balances and subtracting the 
current week's shipments plus downward contract adjustments. Although 
this is not the official U.S. trade data, it is widely used as an early 
indicator of export activity and is available the week following the 
week of reporting. The addition of fresh, chilled, or frozen muscle 
cuts of beef and pork to the reporting program would provide the 
livestock sector with quality up-to-date information that should result 
in more accurate evaluations of changing market conditions. These 
timely reports would benefit the private sector as well as the 
Department in making economic decisions and forecasts on the flow of 
these U.S. agricultural commodities in domestic and export markets.
    The proposed rule would not require reporting information for meats 
other than beef and pork. Reporting pertaining to pork, which together 
with the requirement pertaining to beef, would constitute the most 
valuable information regarding meat export sales activity.

Lists of Subjects in 7 CFR Part 20

    Agricultural commodities, Exports, Reporting.

Proposed Rule

    Accordingly, it is proposed to amend 7 CFR part 20, Export Sales 
Reporting Requirements as follows:
    1. The authority citation for part 20 continues to read as follows:

    Authority: 7 U.S.C. 5712.
    2. Amend Appendix 1 to add the following lines, under the indicated 
column headings, after the line for ``Cattle, calf, and kip, wet 
blues--splits, excluding grain splits.'':

[[Page 11485]]



     Appendix 1 to Part 20.--Commodities Subject to Reporting, Units of Measure To Be Used in Reporting, and
                                  Beginning and Ending Dates of Marketing Years
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                                 Units of measure to be      Beginning of  marketing
   Commodity to be reported         used in reporting                 year               End of marketing year
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
Beef, fresh, chilled or        Metric tons...............  Jan. 1....................  Dec. 31.
 frozen: muscle cuts of beef.
Pork, fresh chilled or         Metric tons...............  Jan. 1....................  Dec. 31.
 frozen: muscle cuts of pork.
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    Signed at Washington, D.C. on February 28, 2000.
Timothy J. Galvin,
Administrator, Foreign Agricultural Service.
[FR Doc. 00-5162 Filed 3-2-00; 8:45 am]
BILLING CODE 3410-10-P