[Federal Register Volume 65, Number 167 (Monday, August 28, 2000)]
[Rules and Regulations]
[Pages 51997-52010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21898]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 130

[Docket No. 97-058-2]
RIN 0579-AA87


Import/Export User Fees

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: We are changing our user fees for import- and export-related 
services that we provide for animals, animal products, birds, germ 
plasm, organisms, and vectors. We are increasing user fees for fiscal 
years 2001 through 2004 to reflect standard annual increases in 
expenses and additional cost components. We have determined that the 
fees must be adjusted annually to reflect the anticipated cost of 
providing these services each year. By publishing the annual user fee 
changes in advance, users can incorporate the fees into their budget 
planning. The user fees pay for the actual cost of providing these 
services. We are also making some editorial changes to make the

[[Page 51998]]

regulations easier to read and eliminate duplication.

EFFECTIVE DATE: October 1, 2000.

FOR FURTHER INFORMATION CONTACT: For information concerning services 
provided for animals, animal products, birds, germ plasm, organisms, 
and vectors, contact Dr. Gary Colgrove, Chief Staff Veterinarian, 
National Center for Import and Export, VS, APHIS, 4700 River Road Unit 
38, Riverdale, MD 20737-1231; (301) 734-8364.
    For information concerning program operations, contact Ms. Louise 
Lothery, Director, Management Support Staff, VS, APHIS, 4700 River Road 
Unit 44, Riverdale, MD 20737-1231; (301) 734-7517.
    For information concerning user fees or rate development, 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

    The regulations in 9 CFR part 130 (referred to below as the 
regulations) list user fees for import- and export-related services 
provided by the Animal and Plant Health Inspection Service (APHIS), 
U.S. Department of Agriculture (the Department), for animals, animal 
products, birds, germ plasm, organisms, and vectors. We are amending 
the user fees for these import- and export-related services to reflect 
the increased costs of providing the services.
    These user fees are authorized by Sec. 2509(c)(1) of the Food, 
Agriculture, Conservation, and Trade Act of 1990, as amended (21 U.S.C. 
136a). APHIS is authorized to establish and collect fees that will 
cover the cost of providing import- and export-related services for 
animals, animal products, birds, germ plasm, organisms, and vectors.
    Since fiscal year (FY) 1992, APHIS has received no directly 
appropriated funds to provide import- and export-related services for 
animals, animal products, birds, germ plasm, organisms, and vectors. 
Our ability to provide these services depends on user fees. We change 
our user fees through the standard rulemaking process of publishing the 
proposed changes for public comment in the Federal Register, 
considering the comments, publishing the final changes in the Federal 
Register, and making the new user fees effective 30 days after the 
final rule is published. This rulemaking process can be lengthy. As a 
result, our user fees have usually reflected less than our actual cost 
to provide services. Since implementing these user fees in 1992, we 
have only adjusted the user fees for cost changes twice. Most of the 
user fees have not been adjusted for cost changes since 1996--four 
years.
    For our user fees to cover our costs so that we can continue to 
provide services and to inform our customers of user fees in time for 
advance planning, we proposed to set user fees for our import- and 
export-related services in advance for fiscal years 2000 through 2004. 
Our proposal was published in the Federal Register on September 30, 
1999 (64 FR 52680-52694, Docket No. 97-058-1). The proposed user fees 
were based on our costs of providing import- and export-related 
services in FY 1999, including costs for rent, equipment replacement, 
billings, collections, and maintaining a reserve, plus adjustments for 
inflation and anticipated annual increases in the salaries of employees 
who provide the services. We included costs for rent because we were 
directed to do so as the result of an audit. We included costs for 
equipment replacement and maintaining a reserve because the Department 
determined that these costs are part of the full cost of providing 
services. We included costs for billings and collections because we are 
assessed for these costs and our user fees have not previously 
contained a component for them. We estimated inflation at 2.3 percent a 
year based on the Consumer Price Index (CPI). The estimated CPI is 
published in the Economic Assumptions table of the Budget for the U.S. 
Government each year. We used estimated pay increases of 4.4 percent 
for FY 2000 and 3.9 percent for FY 2001 through FY 2004, published by 
the U.S. Treasury Department, to calculate increases in the direct 
labor costs each year.
    We also proposed to consolidate the hourly and premium hourly rate 
user fees for import- and export-related services. These fees were 
listed in Secs. 130.3, 130.5, 130.9, 130.10, and 130.21. We proposed to 
list them in one new section, Sec. 130.30. In addition, we proposed to 
list the minimum user fee for import- and export-related services in 
one section--Sec. 130.30. This fee was repeated in Secs. 130.3, 130.5, 
130.6, 130.7, 130.9, 130.10, and 130.21. These proposed changes were 
intended to eliminate duplication and make the hourly, premium hourly, 
and minimum rates easier for our customers to locate.
    Additionally, since the Miami Animal Import Center has never been 
used as an exclusive use quarantine facility, we proposed to remove 
user fees for the exclusive use of the Miami Animal Import Center from 
the listing in Sec. 130.3.
    We solicited comments concerning our proposal for 60 days ending 
November 29, 1999. We received 68 comments by that date. They were from 
representatives of the artificial insemination industry, exporters, 
veterinarians, and a State department of agriculture. They are 
discussed below by topic.

Clarification

    Comment: Are you adding costs for inflation at 2.3 percent a year 
based on the Consumer Price Index in addition to the proposed pay 
increases?
    Response: We increased the direct labor cost element by the 
estimated pay increases. We increased all other operating costs (i.e., 
direct materials, indirect labor, utilities) by 2.3 percent a year for 
inflation based on the Consumer Price Index.

Opposition to User Fees or Increases in General

    Comment: We oppose the proposed increases in import- and export-
related user fees.
    Response: We are no longer appropriated funds for these services. 
Most of these user fees have not changed since 1996; some have been in 
effect longer. Therefore, to continue providing these services, we must 
recover our costs from the customers who benefit from our services. We 
are authorized to do this through user fees. As our costs increase, we 
must increase our user fees. We will continue to monitor our fees and 
control our operating and staffing costs to provide services as 
inexpensively as possible. Therefore, we are making no change to the 
rule in response to this comment.
    Comment: User fees should be increased as the need arises. They 
should not be set several years in advance.
    Response: Our import- and export-related user fees are calculated 
based on our employee salaries and other costs as described in the 
proposal. We know from budget estimates and economic forecasts that 
these costs are expected to increase by a small percentage each year.
    As discussed in our proposal, we plan to review these user fees 
each year, and we continually evaluate our funding needs. The purpose 
of multi-year user fee rates is to allow the user fees to increase as 
our need for additional funding increases and to allow users to 
incorporate the fees into their budget planning. Therefore, we are 
making no change to the rule in response to this comment.
    Comment: If user fees are established for multiple years in 
advance, then user

[[Page 51999]]

fee customers will not have an opportunity to comment about user fee 
rates during the period that those user fees are in effect. The user 
fee rates will not be responsive to industry needs.
    Response: By setting user fees in advance for a 5-year period, we 
are responding to comments we received in response to past proposals. 
Those commenters stated that it was difficult to make business plans 
without knowing in advance when fees would change and by how much. 
Also, commenters in the past have objected to large fee increases, even 
though they occurred infrequently. We believe adopting user fees for 5 
years in advance addresses these concerns. Under this rule, business 
planning should be easier, and fee increases will be more gradual. 
Customers have had the opportunity to comment on the user fees through 
this rulemaking process. In addition, customers may offer suggestions 
and comments on user fees at any time. For example, APHIS established a 
flat rate use fee in lieu of the hourly rate user fee for embryo 
collection center inspection and approval at the request of an industry 
association. (See 63 FR 71728-71729, Docket No. 98-005-2, December 30, 
1998). Therefore, we are making no change to the rule in response to 
this comment.
    Comment: Producers are already paying enough taxes, and these user 
fees are double taxation.
    Response: A tax is money paid to support Government operations that 
benefit the general public. A user fee is money collected for a 
specific service provided to a readily identifiable recipient. The 
Food, Agriculture, Conservation, and Trade Act of 1990, as amended 
(referred to below as the Act) authorizes the Department to prescribe 
and collect user fees to reimburse the cost of carrying out certain 
import- and export-related services for animals, animal products, and 
veterinary diagnostics. The Act further states that ``[a]ny person for 
whom an activity related to the importation, entry, or exportation of 
an animal, article, or means of conveyance or relating to veterinary 
diagnostics, is performed pursuant to the section, shall be liable for 
payment of fees assessed.'' APHIS user fees are designed to recover and 
fund the cost of providing specific services. As such, our user fees 
are fees for specific services provided to a certain portion of the 
public and, therefore, do not constitute a tax. Therefore, we are 
making no changes based on this comment.
    Comment: Increasing the user fees places an undue burden on U.S. 
exports at the same time the Government is spending tax dollars to 
promote the export of agricultural products.
    Response: Congress directed us to charge user fees for these 
services. Congress decides how tax dollars are allocated. Congress has 
not allocated additional funds for our import- and export-related 
services for animals and animal products. Therefore, in order to 
continue providing import- and export-related services, we must charge 
user fees, and, under our user fee authority, we must charge user fees 
which will recover the full cost of providing services. We realize that 
increases in the user fees will increase the up-front cost of doing 
business for importers and exporters. However, before APHIS began 
collecting user fees for import and export services, users were 
subsidized by the taxpayers in general. Those who received services 
from APHIS were not charged and the services were paid for through 
appropriated taxpayer dollars. As appropriated funds are no longer 
available to pay for these services, users must pay for them through 
user fees. We attempt to minimize the cost of our services to keep 
APHIS user fees at the lowest possible level. We do not anticipate that 
exports will decline significantly as a result of these increases in 
user fees. Therefore, we are making no changes based on this comment.
    Comment: The U.S. agricultural economy is in bad financial 
condition. One of the ways we can boost the U.S. agricultural economy 
is to increase exports of animals and animal products. We currently 
have a negative balance of trade in germ plasm. Economic crises in 
Asian countries, the strong U.S. dollar, and European Union subsidies 
of live animal exports are examples of current trends that keep U.S. 
agricultural exports low. These user fee increases will escalate 
prices, make U.S. animals less competitive for export, and seriously 
hamper the ability of U.S. exporters to increase exports of U.S. 
agricultural products. Currently, other competitor countries, such as 
Canada, have no user fees.
    Response: Although some countries do not currently charge for 
import- and export-related services, user fees for these services are 
being adopted by more and more countries. In fact, as of May 3, 1995, 
Canada charges user fees for certain import- and export-related animal 
health services (see May 3, 1995, Canada Gazette Part II, Vol. 129, No. 
9, SOR/DORS/95-198). Therefore, we do not believe that U.S. exporters 
are at a competitive disadvantage compared with exporters in other 
countries because of APHIS user fees. Therefore, we are making no 
changes based on this comment.
    Comment: You should make a greater distinction between imports and 
exports. Live animal exports should be given greater priority and 
provided with better and less expensive services from APHIS because 
they are absolutely essential to the U.S. economy.
    Response: Our user fees do not distinguish between imports and 
exports. Our user fees are calculated to recover the full costs of the 
services that we provide. Because of budget constraints, we do not have 
the option to charge user fees that recover less than the full cost of 
providing a service. If we did so, we would not collect enough money to 
support the service. However, we have attempted to minimize the cost of 
our services, thereby keeping APHIS user fees at the lowest possible 
level. We are making no changes based on this comment.

Fees Related to Specific Services

    Comment: The proposed increases for the hourly rate user fees and 
the user fees in Sec. 130.8(a) for semen imports are too high. The 
hourly rate user fee would increase by $20, from $56.00 to $76.00 per 
hour. The user fee for semen imports would increase from $39.50 to 
$54.00.
    Response: This is the first increase in these user fees since 1996 
(see 61 FR 20421-20437, Docket No. 92-174-2, May 7, 1996). We need to 
increase these user fees because, as stated in the proposal, operating 
costs have increased. In addition, the fees established in 1996 did not 
take into account our costs for rent, equipment replacement, billings, 
collections, and maintaining a reserve. The fees in this rule reflect 
both the increase in costs and the inclusion of cost components that 
had not been included before. They also reflect projected salary 
increases for the employees who provide the services. Therefore, we are 
making no changes based on this comment.
    Comment: The proposed user fees in Sec. 130.8(a) for germ plasm 
exports are too high. The user fee for semen exports would increase 
from $33.50 to $45.00 per certificate. The user fee for embryos exports 
would increase from $54.75 to $74.00 per certificate in the first year 
and up to $83.00 per certificate by the year 2003. We realize that 
there has been no adjustment to the use fee for the endorsement of 
export certificates for germ plasm since it was first implemented in 
January 1994. However, the Consumer Price Index (CPI) over this period 
of time (January 1, 1994 through January 2000) shows an increase of 
approximately 21 percent,

[[Page 52000]]

while the proposed user fee increase is approximately 34.5 percent, 
which is well above the CPI.
    Response: As stated in the proposal, operating costs have increased 
since these user fees were established in 1994 (see 58 FR 67647-67656, 
Docket No. 92-042-2, December 22, 1993). Also, the original user fees 
did not take into account our costs for rent, equipment replacement, 
billings, collections, and maintaining a reserve . We did not propose 
changes in these user fees in 1996 because the user fees had not been 
in place long enough to evaluate whether they were sufficient to 
provide for full cost recovery. The fees in this rule reflect both the 
increase in costs and the inclusion of cost components that had not 
been included before. They also reflect projected salary increases for 
the employees who provide the services. Therefore, we are making no 
changes based on this comment.
    Comment: We are especially concerned about the magnitude of the 
proposed changes in user fees for the inspection of embryo collection 
facilities. The user fee for the inspection of embryo collection 
facilities is increasing from $278 to $337 in the first year and to 
$380 by the year 2003.
    Response: In 1999, the user fee for the inspection of embryo 
collection facilities was revised from an hourly rate user fee to a 
flat rate user fee in response to a request from industry (see 63 FR 
71728-71729, Docket 98-005-2, published December 28, 1998 and effective 
January 29, 1999). The user fee was calculated to reflect the average 
annual cost of providing the service, including the time to provide the 
service and travel time to the facility. The flat rate annual user fee 
was arrived at using the average number of hours required for an APHIS 
inspector to complete an inspection (including travel time), the 
average number of inspections performed during a year (2 per facility), 
the average direct labor involved, and a proportional share of support 
costs, overhead, and departmental charges. We did not, however, factor 
in our costs for rent, equipment replacement, billings, collections, 
and maintaining a reserve, which account for most of the increase in 
the fee in this rulemaking. The fee increases over fiscal years 2000 to 
2004 also anticipate annual increases in the salaries of the employees 
who provide the services. We have made every attempt to keep our costs 
and our user fees down to the lowest reasonable level. The increases in 
the user fee are necessary to recover the full cost of our services. 
Therefore, we are making no changes based on this comment.
    Comment: User fees for export certificates should not be increased 
because exporters print the certificates and prepare them. APHIS 
should, therefore, charge only a minimal fee for its services.
    Response: The user fee for the endorsement of export health 
certificates is calculated based on the costs we incur to provide our 
services. APHIS employees endorse export health certificates in 
accordance with the regulations in 9 CFR part 91. An APHIS endorsement 
certifies that animals and animal products being exported from the 
United States are free from communicable diseases. Direct labor 
activities may include the following: Telephone time for providing 
information about the export health certification process, mailing 
information to customers, protocol research, review of paperwork such 
as health certificates, verification of laboratory test results, 
confirmation that the importing country's requirements have been met, 
paperwork completeness review, certification statements review, 
endorsement/signing, placing an official seal on documents if needed, 
and completing APHIS paperwork related to the endorsement. Many of the 
activities listed above must be performed to make it possible for APHIS 
employees to endorse the export health certificates. We used our 
accounting data and surveys of APHIS locations nationwide where export 
health certificates are endorsed to identify the amount of direct labor 
time APHIS employees spend providing these services. In addition, some 
people use preprinted forms, while others do not. The user fees were 
based on averages; therefore, we factored the variations in the type of 
forms into the user fee calculations. An example showing a minimal user 
fee for the use of preprinted forms with very routine information is 
the user fee in Sec. 130.20(b)(1) for endorsing export health 
certificates for nonslaughter horses to Canada. Even though these 
horses all require a test, the endorsement process is so routine that 
we established a separate minimal per certificate user fee instead of a 
user fee calculated based on the number of horses and the number of 
tests or vaccinations. Therefore, we are making no changes based on 
this comment.
    Comment: There appear to be inequities in Sec. 130.8 between the 
user fees for semen exports and those for embryos exports. The user 
fees for embryo exports are significantly higher than the user fees for 
semen exports. In addition, the same fee applies for certificates for 
semen, regardless of how many doses are covered by the certificate. On 
certificates for embryos, however, the basic fee covers only up to five 
donor pairs on a certificate; an additional fee applies for each 
additional group of donor pairs (up to five pairs per group) on the 
same certificate.
    Response: The average time required for us to provide export-
related services for embryos is higher than the average time to provide 
those services for semen. Specifically, we have found that more time is 
required to answer questions about exporting embryos in advance and to 
review documentation and statements on the certificates that accompany 
the embryos for exportation. Therefore, the calculation for the user 
fees for exporting embryos includes more direct labor hours, and that 
results in the higher cost. The intention in the tiered user fee 
structure for the export-related services for embryos was not to limit 
the number of donor pairs on a certificate, but to recognize the lower 
costs to provide the same service for the additional donor pairs. We 
determined that there is a marginal cost decrease to endorse additional 
groups of donor pairs on the same export health certificate. User fees 
are calculated to recover only the cost of services. Therefore, the 
tiered user fee rate, with a lower fee for additional groups of donor 
pairs on the same certificate, is appropriate, and we are making no 
changes based on this comment.
    Comment: The user fee schedule for inspections of embryo collection 
facilities should have an initial fee at one rate and a renewal fee at 
a reduced rate.
    Response: Our annual inspection of an already approved embryo 
collection facility takes a certain amount of time. The first 
inspection of a facility may take a little longer, but we are not 
charging more for that first year; instead we built it into the annual 
user fee so the cost of the inspections is averaged. Therefore, we are 
making no changes based on this comment.
    Comment: We request that you consider establishing a maximum fee 
for exporting a small shipment of livestock. We suggest a small 
shipment be 30 or fewer pigs, sheep, or goats, or 15 or fewer dairy or 
beef animals. These numbers will fill approximately two aircraft 
pallets. It is our experience that the processing and inspection at the 
port of export for this size shipment requires an hour or less of APHIS 
veterinary personnel time.
    Response: We have established a maximum user fee for export health 
certificates that is intended as a cap for the user fee for the 
endorsement of export health certificates for large

[[Page 52001]]

shipments (see 65 FR 16122-16124, Docket 98-003-2, March 27, 2000). The 
maximum user fee ensures that our fixed costs have been covered for 
large shipments. We have reviewed our flat rate user fees for export 
health certificates and believe that these user fees are fair for any 
size shipments, even small shipments. Based on the examples provided in 
the comment, the small shipment maximum being requested would apply to 
export-related services provided at our hourly rate user fee. Under 
Sec. 130.20(c), when exporters are able to have these endorsements done 
at the inspection site at the same time that we provide inspection and 
supervision services, then the hourly rate user fee charged for the 
inspection and supervision services also covers the endorsement 
services. The hourly rate user fees are based on the actual number of 
hours it takes to provide our services. Therefore, we believe that 
these hourly rate user fees are also fair, and we are making no changes 
based on this comment.
    Comment: The user fee in Sec. 130.20(a) for nonslaughter horses to 
Canada is too low because of the required tests. In addition, the 
processing of the export health certificates for nonslaughter horses to 
Canada has changed over time. When the user fee was established, Canada 
required a separate certificate for each horse. Since 1995, Canada has 
allowed more than one horse to be included on a certificate, under 
certain conditions. Therefore, the user fee should be revised to 
reflect this change. The regulations need to clarify the charges for 
various forms used for this service. The costs for export 
certifications with multiple horses are not adequately covered by the 
user fee for nonslaughter horses to Canada.
    Response: The user fee for endorsing the certificate for 
nonslaughter horses to Canada is lower than the user fee for other 
endorsements requiring the verification of tests or vaccinations. This 
is because most certificates for nonslaughter horses to Canada are 
preprinted forms with complete information (VS form 17-145). Also, 
there is a single identification to check for these horses versus 
multiple identifications for cattle and other animals. In addition, 
there is a single statement on the certificate for these horses, as 
opposed to multiple statements for cattle and other animals. 
Consequently, endorsing certificates for nonslaughter horses to Canada 
is a very standard procedure that takes significantly less time than 
endorsing other certificates that require the verification of tests or 
vaccinations. This is why, when we initially established the user fee, 
we identified it separately from user fees for other endorsements. As 
the commenter pointed out, however, the certificates initially covered 
a single nonslaughter horse to Canada. Since that time, exporters have 
also used VS form 17-140 to cover multiple nonslaughter horses to 
Canada. Certificates covering multiple horses take longer to process 
than certificates covering only a single horse. Therefore, we are 
amending Sec. 130.20(a) to specify that the base user fee covers the 
first animal on the certificate and that each additional animal on the 
certificate will increase the fee by $4.
    Comment: The minimum user fee for inspecting pet birds entering the 
United States should not be increased. APHIS should establish a 
separate minimum user fee for pet birds that would be lower than the 
minimum user fee for other services.
    Response: The minimum user fee covers the basic minimum service 
that we provide. The minimum user fee was developed primarily to cover 
the costs of handling unusually small importations at ports of entry. 
Our user fees are calculated to represent the average costs of 
providing the service. We cannot predict or control the frequency of 
unusually small importations. Therefore, we cannot account for the cost 
of providing service for them when calculating our user fees. To ensure 
that our basic costs are always covered, we charge a minimum user fee. 
At a minimum, any service we provide requires a certain amount of fixed 
costs. These fixed costs include the direct costs of providing the 
service and indirect costs to support providing a service; for example, 
to process the paperwork and bill for the services. We cannot establish 
a lower minimum user fee for inspecting pet birds entering the United 
States or we would not recover the full costs of providing those 
services. Therefore, we are making no changes based on this comment.
    Comment: The user fees in Sec. 130.20 for export certificates do 
not capture all of the preparatory services that APHIS provides. The 
accredited veterinarian checks with the area veterinarian in charge for 
the receiving country's requirements, which generally takes 10-15 
minutes, with an additional 10-15 minutes for clarification. The area 
veterinarian in charge and export/legal documents examiner review the 
draft and identify corrections. The accredited veterinarian sends the 
original to the area veterinarian in charge for endorsement. This is a 
facet of improved customer service and significantly reduces the 
situations where animals are loaded but APHIS can't endorse the export 
certificate. APHIS should increase the user fee to capture all of the 
costs of the preparatory services.
    Response: These user fees are calculated to represent the average 
costs of providing the service. Therefore, some of the user fees may 
appear to be too high or too low based on an individual's experience, 
but in fact represent the average cost of providing the service. In the 
aggregate, the export certification user fees cover our costs and are 
not too low. The user fees increases in this document should allow us 
to continue to adequately recover export certification costs. We are 
making no changes based on this comment.
    Comment: Services that APHIS provides under Sec. 130.7 entail the 
same amount of work for in-transit cattle, horses, and swine. 
Therefore, APHIS should adjust the user fees to make them the same.
    Response: The main difference in the calculations to determine the 
user fees for in-transit cattle, horses, and swine is the average 
number of animals (head) inspected per entry. The number of head per 
entry varies by type of animal and by port of entry. We calculated 
these user fees to reflect the average cost of service for each type of 
animal. We started with the total cost of providing the service and 
divided that by the average number of animals in a shipment as follows: 
200 swine, 35 cattle, and 7 horses. Therefore, the calculations 
resulted in lower user fees for swine and higher user fees for horses. 
We believe that this was an equitable way to determine the appropriate 
user fees to pay for the services we provide for in-transit cattle, 
horses, and swine. Therefore, we are making no changes based on this 
comment.
    Comment: The user fees in Sec. 130.20 do not capture all of the 
services that APHIS provides for export health certificates that do not 
require verification of tests or vaccinations, but do require APHIS to 
verify statements made by an accredited veterinarian concerning the 
animals to be exported and/or the herd of origin. When APHIS must 
verify certification statements, then the user fee for the verification 
of tests or vaccinations should be used.
    Response: We calculated these user fees to represent the average 
costs of providing the service. Therefore, some of the user fees may 
appear to be too high or too low based on an individual's experience, 
but in fact represent the average cost of providing the service. We did 
incorporate the time to review occasional certification statements into

[[Page 52002]]

the calculation for the user fee for the endorsement of export health 
certificates that do not require tests or vaccinations. In the 
aggregate, the export certification user fees cover our costs and are 
not too low. The user fee increases in this document should allow us to 
continue to adequately recover export certification costs. Therefore, 
we are making no changes based on this comment.

Fees Relative to Services Rendered

    Comment: The APHIS National Center for Import and Export (NCIE) 
personnel and the local APHIS area veterinarian in charge coordinate 
and facilitate the export of animals and animal products, including 
germ plasm. From early 1999 on, we have noticed an increase in job 
requirements and a gradual reduction in experienced personnel, 
resulting in a decrease in the ability of NCIE staff to respond to 
issues related to the exportation of germ plasm. In addition, our local 
area veterinarian in charge has a large geographic area of 
responsibility, and we often have to work around his schedule for our 
outbound shipments. APHIS helps us with serious issues regarding animal 
semen detained in customs in foreign countries and with health 
regulation questions. Timely information and quick action can make a 
difference in these areas. Delays in responses from APHIS can cause 
extra expenses and delays and increase the risk of losses. We 
respectfully request that the number of experienced staff be increased 
to a level such that staff can provide services needed by the 
artificial insemination industry to facilitate the trade of germ plasm 
in a timely fashion. We urge that the structure of the NCIE staff be 
given consideration to effectively support the trade of U.S. goods, 
including germ plasm.
    Response: Some experienced personnel have left and new people are 
being hired and trained to provide the required import- and export-
related user fee services for animals, animal products, and germ plasm. 
We provide a wide range of services and believe that structure of our 
staff is effective for providing those services. Our staff provides 
both user fee services and services covered by appropriations. If we 
were to consider restructuring to provide staff to focus solely on user 
fee services for the germ plasm industry, we would have to recalculate 
the germ plasm user fees, which could result in significant increases 
in those user fees. We are making no changes based on this comment.
    Comment: We refer to the APHIS Retrieval System on the Internet for 
the latest health requirements for other countries. In late 1999, there 
was an error in the European Union requirements listed in the system, 
and the Japanese health requirements were not listed in the system. If 
user fees are increased, then we request better service.
    Response: We provide information about other countries' 
requirements as a service for our customers. We attempt to keep the 
information in our APHIS Retrieval System current. We are dependent, 
however, on receiving timely information from other countries and 
organizations. We are making no changes based on this comment.

Miscellaneous

    Comment: You should provide forms for export health certificates 
that can be used with a laser printer instead of the older forms using 
carbon paper.
    Response: We use many different forms for our import- and export-
related services for animals, animal products, and germ plasm. Some of 
these forms are available as computerized forms that can be used in 
laser printers. We are continuing the process of converting our forms 
to make them easier to use, including forms that can be used in laser 
printers.
    Comment: Money from user fees should be used to streamline the 
certification and endorsement process through electronic transfer of 
papers, signatures, and record retrieval. An electronic streamlined 
process could reduce costs.
    Response: We are currently developing a system that will provide a 
wide range of on-line services for the electronic submission, payment, 
review, and receipt of permits. We also intend to develop additional 
electronic systems for other services that we provide. APHIS services 
are continually adjusted to meet changing needs. We are constantly 
trying to improve our services and reduce costs.
    Comment: APHIS should streamline the paperwork for pet birds by 
combining the current pet bird agreement and the avian release form 
into a single document for the inspection and release of pet birds.
    Response: We are looking at streamlining the pet bird import 
process, including forms.
    Comment: Please clarify Sec. 130.20(b)(1), in the second sentence 
to say ``tests or vaccinations'' in place of ``tests'' to be consistent 
with the wording throughout the paragraph for these user fees.
    Response: In 1996, we amended Sec. 130.20(a) and (b)(1) to clarify 
that the user fees in Sec. 130.20(b)(1) apply when APHIS personnel must 
verify tests or vaccinations (see 61 FR 20421-20437, Docket 92-174-2, 
May 7, 1996). At that time, we inadvertently failed to make the change 
suggested by the commenter. We are doing so in this final rule.
    Comment: For the user fees in Sec. 130.7(a), are registered horses 
considered ``Registered animals, all types'' or ``Horses other than 
slaughter and in-transit''?
    Response: Most horses are registered horses; therefore, our 
intention has always been that the category ``Horses, other than 
slaughter and in-transit'' was to include registered horses. To clarify 
this, we are changing the categories in the table for registered 
animals and horses to read ``Registered animals (except horses)'' and 
``Horses (including registered horses), other than slaughter and in-
transit.''
    Comment: Under Sec. 130.7, there are categories for ``Poultry 
imported for any purpose'' and ``Slaughter animals, all types,'' but no 
category for slaughter poultry. The same amount of inspection and 
paperwork is required for slaughter cattle, swine, turkeys, or 
chickens. APHIS should consider adding a category in Sec. 130.7 for in-
transit poultry.
    Response: The user fee for poultry imported for any purpose 
includes slaughter poultry and in-transit poultry. We charge the user 
fee for poultry imported for any purpose for in-transit poultry and 
slaughter poultry because the same amount of time is required to 
inspect the poultry. To clarify this, we are changing the category in 
the table for slaughter animals to read ``Slaughter animals (except 
poultry).''
    Comment: Under Sec. 130.7(a), there are user fees for ``Feeder 
animals (calves, cattle, sheep, and swine)'' and ``Horses, other than 
slaughter and in-transit,'' but no category for ``Feeder horses.'' 
APHIS should establish a user fee category for ``Feeder horses'' for 
horses 9 months or younger.
    Response: In our experience, the importation of horses strictly for 
feeding purposes is rare. Therefore, we are not publishing a user fee 
for feeder horses. If a large load of horses is imported strictly as 
feeder animals, then we would determine that at the port of entry and 
would, under Sec. 130.30(a)(13), charge our hourly rate user fee for 
the services required for those horses. Therefore, we are making no 
changes based on this comment.

Intervening Amendments

    Our proposed rule was published on September 30, 1999. Between that 
date and the publication of this final rule, other final rules amending 
part 130 have been published. The changes made by

[[Page 52003]]

those final rules are described below. This final rule reflects those 
changes.
    On September 23, 1999, we published in the Federal Register (64 FR 
51421-51422, Docket No. 98-006-2) a final rule that amended user fees 
for import- or entry-related services provided for animals presented at 
airports, ocean ports, and rail ports. The rule became effective on 
November 29, 1999. The rule replaced the flat rate user fee in 
Sec. 130.7 with hourly rate user fees in Sec. 130.9.
    On December 3, 1999, we published in the Federal Register (64 FR 
67699-67670, Docket No. 98-004-1) a final rule that made miscellaneous, 
nonsubstantive changes in part 130. The rule was effective as of 
November 29, 1999. The rule revised the section heading for Sec. 130.2; 
clarified the ruminants category in Sec. 130.6 to include breeder 
ruminants; moved user fees for pet birds out of Sec. 130.8 and into 
Sec. 130.10; revised the section heading for Sec. 130.10; and revised 
several categories in Sec. 130.20 for clarity by adding nonanimal 
products to the animal products category, moving the nonslaughter 
horses to Canada category from the table in paragraph (a) into the 
table in paragraph (b)(1), and revising the poultry and slaughter 
animals categories to clarify that slaughter poultry are included in 
the poultry category.
    Also on December 3, 1999, we published in the Federal Register (64 
FR 67697-67698, Docket No. 98-052-2) a final rule that amended user 
fees for the inspection for approval of biosecurity level three 
laboratories. The rule became effective on January 3, 2000. The rule 
replaced the hourly rates for this service in Sec. 130.9 with a flat 
rate user fee in Sec. 130.8 to cover all the costs of inspection 
related to approving a laboratory for handling one defined set of 
organisms or vectors.
    On June 20, 2000, we published in the Federal Register (65 FR 
38179-38182, Docket 98-045-2) a final rule that amended user fees for 
inspection and approval of various pet food facilities. The rule became 
effective July 20, 2000. The rule replaced the hourly rates for this 
service in Sec. 130.21 with flat rate user fees in new Sec. 130.11. The 
rule also moved all of the flat rate user fees contained in Sec. 130.8 
that are charged to import/export facilities or establishments into new 
Sec. 130.11.

User Fees for Animals and Birds Quarantined in APHIS-Owned or 
Operated Quarantine Facilities

    Sections Secs. 130.2 and 130.3 contain fees for animals and birds 
quarantined in APHIS-owned or operated quarantine facilities, including 
APHIS Animal Import Centers. Users must make advance reservations for 
space at these facilities. To avoid unfairness, for all space reserved 
prior to the date this final rule is published, we will charge the user 
fee in effect at the time the reservation was made. For space 
reservations made after the date this final rule is published, we will 
charge the user fees adopted in this final rule.

Effective Date

    Our proposal included user fees for fiscal years 2000 through 2004. 
Because this rule will not be effective until October 1, 2000, our 
final rule does not include fee increases for any portion of FY 2000.
    Therefore, for the reasons given in the proposed rule and in this 
document, we are adopting the proposed rule as a final rule, with the 
changes discussed in this document.

Executive Order 12866 and Regulatory Flexibility Act

    This rule has been reviewed under Executive Order 12866. The rule 
has been determined to be significant for the purposes of Executive 
Order 12866 and, therefore, has been reviewed by the Office of 
Management and Budget.
    In accordance with 5 U.S.C. 604, we have prepared a final 
regulatory flexibility analysis regarding the economic effects of this 
rule on small entities. Below is a summary of the economic analysis for 
the changes in APHIS user fees in this document. The discussion also 
serves as our cost-benefit analysis under Executive Order 12866. A copy 
of the full economic analysis, which includes comparisons of the change 
in collections for each user fee, is available for review at the 
location listed in the ADDRESSES section at the beginning of this 
document.

Need and Objective of This Rule

    These user fees are authorized by Sec. 2509(c)(1) of the Food, 
Agriculture, Conservation, and Trade Act of 1990, as amended (21 U.S.C. 
136a). APHIS is authorized to establish and collect fees that will 
cover the cost of providing import- and export-related services for 
animals, animal products, birds, germ plasm, organisms, and vectors.
    Since FY 1992, APHIS has received no directly appropriated funds to 
provide import- and export-related services for animals, animal 
products, birds, germ plasm, organisms, and vectors. Our ability to 
provide these services depends on user fees. We change our user fees 
through the standard rulemaking process of publishing the proposed 
changes for public comment in the Federal Register, considering the 
comments, publishing the final changes in the Federal Register, and 
making the new user fees effective 30 days after the final rule is 
published. This rulemaking process can be lengthy. As a result, our 
user fees have not always reflected the actual cost of providing 
services.
    For our user fees to cover our costs so that we can continue to 
provide services and to inform our customers of user fees in time for 
advance planning, we are setting user fees for our services in advance 
for fiscal years 2001 through 2004. The user fees are based on our 
costs of providing import- and export-related services in FY 1999, 
including costs for rent, equipment replacement, billings, collections, 
and maintaining a reserve, plus adjustments for inflation, plus 
anticipated annual increases in the salaries of employees who provide 
the services. Because we had initially projected having the new fees in 
place sometime in FY 2000, our analysis covered fiscal years 2000 
through 2004. We used estimated pay increases of 4.4 percent for FY 
2000 and 3.9 percent for FY 2001 through FY 2004 published by the U.S. 
Treasury Department to calculate increases in the direct labor costs 
each year. We estimated inflation at 2.3 percent a year based on the 
Consumer Price Index (CPI). The estimated CPI is published in the 
Economic Assumptions table of the Budget for the U.S. Government each 
year.

Changes in Program Collection and Cost Estimates

    In our proposed rule, we made certain collection and cost estimates 
based on the best data available at the time. Actual collections and 
costs varied somewhat from the estimates, but did not cause a 
significant difference in the scope of the program or the need to 
revise the fees as proposed. Our full analysis has been updated to 
reflect the new data.
    The calculations underlying the proposed rule assumed an April 1, 
2000, implementation date. Implementing the rule on July 1, 2000 will 
reduce the anticipated FY 2000 collections by $1,207,783. In FY 1999, 
the collections actually received totaled $13,038,181 instead of the 
$11,940,080 shown in the proposed rule as the estimated current annual 
collections. In the proposed rule, we based the estimated current 
annual collections and the projections for fiscal years 2000-2004 on FY 
1998 collections and volumes, respectively. Total collections and 
volumes for FY 1999 were not available when the proposed rule was 
published. The following

[[Page 52004]]

summary table shows annual expenses for providing import- and export-
related services, current collections, increases in collections from 
the user fee changes, and projected reserve amounts.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                          Total FY 1999-
             Calendar dates:                  FY 1999       FY 2000 \1\       FY 2001         FY 2002         FY 2003         FY 2004         FY 2004
--------------------------------------------------------------------------------------------------------------------------------------------------------
Operating reserve, start of year........        $382,142        $154,697    ($2,112,651)      ($706,754)        $749,163      $2,471,687  ..............
Annual income:
    Current collections\2\..............      13,038,181      13,038,181      13,038,181      13,038,181      13,038,181      13,038,181     $78,229,086
    Proposed collections................               0       1,207,783       5,245,795       5,655,334       6,336,962       6,817,646      25,263,520
    Total income........................      13,038,181      14,245,964      18,283,976      18,693,515      19,375,143      19,855,827     103,492,606
                                         ---------------------------------------------------------------------------------------------------------------
Annual expenses\3\......................      13,265,626      16,513,312      16,833,079      17,237,598      17,652,619      18,078,413      99,580,647
                                         ===============================================================================================================
    Income, less expenses...............       (227,445)     (2,267,348)       1,450,897       1,455,917       1,722,524       1,777,414  ..............
Operating reserve, end of year..........         154,697     (2,112,651)       (661,754)         749,163       2,471,687       4,249,101  ..............
    Months (no.)........................            0.00            0.00            0.00            0.52            1.68            2.82  ..............
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ FY 2000 estimates are based on an estimated implementation date for the proposed user fees of July 1, 2000.
\2\ Projections for FY 2000-2004 are based on actual FY 1999 volumes.
\3\ The annual expenses shown in the table in the FY 1999 column and in the FY 2000 column reflect expenses constrained by income from user fee
  collections. Our user fees were not high enough in FY 1999 to provide the level of service delivery requested for import- and export-related
  activities. Our current user fees are approximately $2.1 million below the performance level of services requested. Even with the user fee increases,
  using an estimated effective date of July 1, 2000 for the FY 2000 user fees, we anticipate that in FY 2000 our user fee collections would be over $2
  million below the level of anticipated service requests. To constrain expenses down to equal income, we would be required to restrict services until
  user fee increases can be implemented. The user fee increases will allow us to meet customer demand and build an adequate reserve. Therefore, once
  implemented, service restrictions will no longer be required.

Effects on Small Entities

    User fee changes could affect some importers and exporters of live 
animals, animal products, birds, germ plasm, organisms, and vectors. 
Any of these importers or exporters whose annual sales total less than 
$5 million is a small entity according to the Small Business 
Administration (SBA). We do not have adequate information to determine 
the number of entities who import or export live animals and qualify as 
a small entity. Data from the 1995 Bureau of Census indicates that the 
majority of agricultural entities who deal in less valuable animals, 
such as feeding or slaughter animals, can be considered small. This may 
not be the case for entities dealing exclusively in more valuable 
animals. While there is a wide range in the size of entities who use 
our import- and export-related services, our experience shows that as 
many as 50 percent may be considered large.
    The profit margins of some entities could decline as user fees for 
import- or export-related services are increased. However, the user fee 
increases are generally small in dollar value. Over the 5 years, more 
than 57 percent of the individual user fee increases are $1.00 or less, 
and more than 88 percent are less than $10.00. In addition, the user 
fees represent a small fraction of the value of the affected animals. 
Purchase and import costs for importing a breeding grade animal into 
the United States can range between $1500 and $5000 per head. 
Therefore, the user fee increases are not generally expected to reduce 
profits or impede imports or exports. Indeed, entities directly 
affected by this rule are not likely to bear the full burden of the 
user fee increases, as some of the cost increases are expected to be 
passed on to the purchasers of these imported or exported animals or 
animal products.
    In our proposal, we solicited comments on the potential effects of 
the proposed action on small entities. In particular, we sought data 
and other information to help us better determine what effects, if any, 
this rule would have on the small entities mentioned above. We received 
no comments providing specific data in relation to the proposed rule's 
initial regulatory flexibility analysis, but commenters expressed 
concern that the proposal could negatively affect U.S. entities that 
export germ plasm by increasing their costs.
    In our initial regulatory flexibility analysis, we agreed that the 
profit margins of some entities could decline as user fees for import- 
or export-related services increase under this rule. The commenters did 
not provide any data. Therefore, we are unable to determine with more 
specificity the effects of this rule on small or large entities that 
export germ plasm from the United States.

Alternatives

    One alternative to this rule would be to make no changes to the 
current user fees. We do not consider making no changes to the current 
user fees a reasonable alternative because we would not recover the 
full cost of providing the import- and export-related services. Since 
1992, Congress has not appropriated funds for these services; these 
services have been paid for through user fees charged to the customer 
or reimbursable agreements. Therefore, if we had chosen this 
alternative and made no changes to the current user fees, funds would 
not be available to continue to provide services at a level sufficient 
to meet customer demand.
    Another alternative to this rule would be to either exempt small 
businesses from these user fees or establish a different user fee 
structure for small businesses. APHIS cannot exempt certain classes of 
users, such as small businesses, from the user fees, and cannot charge 
user fees that recover less than the full cost of providing the 
service. In addition, every business, including small businesses, using 
a government service needs to pay the cost of that service, rather than 
having other businesses pay a disproportionate share or passing those 
costs on to the general public, who are not the primary beneficiary of 
the service. Therefore, we do not consider exempting small businesses 
from these user fees or

[[Page 52005]]

establishing a different user fee structure for small businesses as 
viable options.
    Another alternative to the user fee changes in this rule would be 
to calculate the increases for the 5-year period and then spread the 
changes evenly in annual increments. The largest change from the 
current user fees to the FY 2000 user fees comes from the additional 
administrative support cost components: Rent, billing costs and 
collections expenses, and equipment capitalization. APHIS is already 
incurring these costs; therefore we need to recover these costs through 
user fees. If we had proposed these increases phased in over the 5-year 
period, it would benefit users in FY 2000 because they would not pay a 
large increase in the first year. However, most of these user fees have 
not been changed since FY 1996 and the current user fees no longer 
reflect the cost of providing import- and export-related services. 
Therefore, if we implemented this alternative, the user fees would 
still not accurately reflect the costs in FY 2000, and we would not 
recover the costs of providing import- or export-related services, so 
this option is not viable. We are offering a multi-year plan so that 
businesses will know the annual changes in advance and can incorporate 
them into their budgetary plans. The alternative would be to continue 
as we have with occasional large increases instead of the initial 
increase to bring the user fees up to the cost of providing services 
and implementing annual changes as we have in this document.

Cost Benefit Analysis

    The benefit of user fees is the shift in the payment of services 
from taxpayers as a whole to those persons who are receiving the 
government services. While taxes may not change by the same amount as 
the change in user fee collections, there is a related shift in the 
appropriations of taxes to government programs, which allows those tax 
dollars to be applied to other programs that benefit the public in 
general. Therefore, there could be a relative savings to taxpayers as a 
result of the changes in user fees.
    The administrative cost involved in obtaining these savings will be 
minimal. APHIS already has a user fee program and a mechanism for 
collecting user fees in place. This rule will update existing user fees 
in the system. Therefore, increases in administrative costs will be 
small. Because the savings are sufficiently large, and the 
administrative costs will be small, it is likely that the net gain in 
reducing the burden on taxpayers as a whole will outweigh the cost of 
administering the revisions of the user fees.
    This rule contains no new information collection or recordkeeping 
requirements.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule: (1) Preempts all State and local laws 
and regulations that are inconsistent with this rule; (2) has no 
retroactive effect; and (3) does not require administrative proceedings 
before parties may file suit in court challenging this rule.

Paperwork Reduction Act

    This final rule contains no new information collection or 
recordkeeping requirements under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501 et seq.). The information collection requirements in 9 
CFR part 130 have been approved by the Office of Management and Budget 
under OMB control number 0579-0094.

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 are amending 9 CFR part 130 as follows:

PART 130--USER FEES

    1. The authority citation for part 130 is 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 371.4.


    2. Section 130.2 is amended as follows:
    a. In paragraph (a), by revising the table.
    b. In paragraph (b), by revising the table.


Sec. 130.2  User fees for individual animals and certain birds 
quarantined in APHIS-owned or operated animal quarantine facilities, 
including APHIS Animal Import Centers.

    (a) * * *

----------------------------------------------------------------------------------------------------------------
                                                                          Daily user fee
                                                 ---------------------------------------------------------------
                 Animal or bird                    Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
                                                  Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
Birds (excluding ratites and pet birds imported
 in accordance with Part 93 of this subchapter):
    0-250 grams.................................           $1.50           $1.50           $1.50           $1.75
    251-1,000 grams.............................            5.25            5.25            5.50            5.75
    Over 1,000 grams............................           12.00           13.00           13.00           13.00
Domestic or zoo animals (except equines, birds,
 and poultry):
    Bison, bulls, camels, cattle, or zoo animals           95.00           97.00          100.00          102.00
    All others, including, but not limited to,             25.00           26.00           26.00           27.00
     alpacas, llamas, goats, sheep, and swine...
Equines (including zoo equines, but excluding
 miniature horses):
    1st through 3rd day (fee per day)...........          251.00          257.00          264.00          270.00
    4th through 7th day (fee per day)...........          182.00          186.00          191.00          195.00
    8th and subsequent days (fee per day).......          154.00          158.00          162.00          166.00
Miniature horses................................           57.00           58.00           60.00           61.00
Poultry (including zoo poultry):
    Doves, pigeons, quail.......................            3.25            3.25            3.25            3.50
    Chickens, ducks, grouse, guinea fowl,                   6.00            6.00            6.25            6.25
     partridge, pea fowl, pheasants.............
    Large poultry and large waterfowl,                     14.00           14.00           14.00           15.00
     including, but not limited to game cocks,
     geese, swans, and turkeys..................
Ratites:
    Chicks (less than 3 months old).............            8.75            9.00            9.00            9.25
    Juveniles (3 months through 10 months old)..           13.00           13.00           14.00           14.00

[[Page 52006]]

 
    Adults (11 months old and older)............           25.00           26.00           26.00           27.00
----------------------------------------------------------------------------------------------------------------

    (b) * * *

----------------------------------------------------------------------------------------------------------------
                                                                          Daily user fee
                                                 ---------------------------------------------------------------
 Bird or poultry (nonstandard housing, care, or    Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
                    handling)                     Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
Birds 0-250 grams and doves, pigeons, and quail.           $5.25           $5.25           $5.50           $5.75
Birds 251-1,000 grams and poultry such as                  12.00           13.00           13.00           13.00
 chickens, ducks, grouse, guinea fowl,
 partridge, pea fowl, and pheasants.............
Birds over 1,000 grams and large poultry and               24.00           24.00           25.00           25.00
 large waterfowl, including, but not limited to
 game cocks, geese, swans, and turkeys..........
----------------------------------------------------------------------------------------------------------------

* * * * *

    3. Section 130.3 is amended as follows:
    a. In paragraph (a)(1), by revising the table.
    b. By revising paragraph (c)(3).


Sec. 130.3  User fees for exclusive use of space at APHIS Animal Import 
Centers.

    (a)(1) * * *

----------------------------------------------------------------------------------------------------------------
                                                                         Monthly user fee
                                                 ---------------------------------------------------------------
              Animal import center                 Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
                                                  Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
Newburgh, NY:
    Space A . . . 5,396 sq. ft. (503.1 sq. m.)..         $54,523         $56,054         $57,630         $59,254
    Space B . . . 8,903 sq. ft. (827.1 sq. m.)..          89,959          92,484          95,085          97,764
    Space C . . . 905 sq. ft. (84.1 sq. m.).....           9,144           9,401           9,666           9,938
----------------------------------------------------------------------------------------------------------------

* * * * *
    (c) * * *
    (3) If the importer requests additional services, then the user 
fees for those services will be calculated at the hourly rate user fee 
listed in Sec. 130.30, for each employee required to perform the 
service.
* * * * *

    4. Section 130.5 is revised to read as follows:


Sec. 130.5  User fees for services at privately owned permanent and 
temporary import quarantine facilities.

    (a) User fees for each animal quarantined in a privately operated 
permanent or temporary import quarantine facility will be calculated at 
the hourly user fee rate listed in Sec. 130.30, for each employee 
required to perform the service. 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 
Secs. 130.50 and 130.51.
    (b) [Reserved]

(Approved by the Office of Management and Budget under control number 
0579-0094)

    5. Section 130.6 is revised to read as follows:


Sec. 130.6  User fees for inspection of live animals at land border 
ports along the United States-Mexico border.

    (a) User fees for live animals presented for importation into or 
entry into the United States through a land border port along the 
United States-Mexico border are listed in the following table. The 
minimum user fee for this service is listed in Sec. 130.30. 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 Secs. 130.50 and 130.51.

----------------------------------------------------------------------------------------------------------------
                                                                         Per head user fee
                                                 ---------------------------------------------------------------
               Type of live animal                 Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
                                                  Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
Any ruminants (including breeder ruminants) not            $8.25           $8.50           $8.75           $9.00
 covered below..................................
Feeder..........................................            2.25            2.25            2.50            2.50
Horses, other than slaughter....................           41.00           42.00           43.00           44.00
In-bond or in-transit...........................            5.25            5.50            5.50            5.75
Slaughter.......................................            3.50            3.50            3.75            3.75
----------------------------------------------------------------------------------------------------------------


[[Page 52007]]

    (b) [Reserved]

(Approved by the Office of Management and Budget under control numbers 
0579-0055 and 0579-0094)

    6. Section 130.7 is revised to read as follows:


Sec. 130.7  User fees for import or entry services for live animals at 
land border ports along the United States-Canada border.

    (a) User fees for live animals presented for importation into or 
entry into the United States through a land border port along the 
United States-Canada border are listed in the following table. The 
minimum user fee for this service is listed in Sec. 130.30. 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 Secs. 130.50 and 130.51.

----------------------------------------------------------------------------------------------------------------
                                                                             User fee
                                                 ---------------------------------------------------------------
      Type of live animal             Unit        Oct. 1, 2000--  Oct. 1, 2001--  Oct. 1, 2002--
                                                  Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
Animals being imported into
 the United States:
Breeding animals (Grade
 animals, except horses):
    Sheep and goats...........  per head........           $0.50           $0.50           $0.50           $0.50
    Swine.....................  per head........            0.75            0.75            0.75            0.75
    All others................  per head........            3.00            3.25            3.25            3.25
Feeder animals:
    Cattle (not including       per head........            1.50            1.50            1.50            1.50
     calves).
    Sheep and calves..........  per head........            0.50            0.50            0.50            0.50
    Swine.....................  per head........            0.25            0.25            0.25            0.25
    Horses (including           per head........           26.00           27.00           28.00           29.00
     registered horses), other
     than slaughter and in-
     transit.
    Poultry (including eggs),   per load........           46.00           47.00           48.00           50.00
     imported for any purpose.
    Registered animals (except  per head........            5.50            5.50            5.75            6.00
     horses).
    Slaughter animals (except   per load........           23.00           24.00           24.00           25.00
     poultry).
Animals transiting \1\ the
 United States:
    Cattle....................  per head........            1.25            1.50            1.50            1.50
    Horses and all other        per head........            6.25            6.50            6.75            6.75
     animals.
    Sheep and goats...........  per head........            0.25            0.25            0.25            0.25
    Swine.....................  per head........            0.25            0.25            0.25           0.25
----------------------------------------------------------------------------------------------------------------
\1\ The user fee in this section will be charged for in-transit authorizations at the port where the
  authorization services are performed. For additional services provided by APHIS, at any port, the hourly user
  fee rate in Sec.  130.30 will apply.

    (b) [Reserved]

(Approved by the Office of Management and Budget under control numbers 
0579-0055 and 0579-0094)

    7. Section 130.8 is revised to read as follows:


Sec. 130.8  User fees for other services.

    (a) User fees for other services that are not specifically 
addressed elsewhere in part 130 are listed in the following table. 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 Secs. 130.50 and 130.51.

----------------------------------------------------------------------------------------------------------------
                                                                             User fee
                                                 ---------------------------------------------------------------
            Service                   Unit         Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
                                                  Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
Germ plasm being exported: \1\
Embryo:
    Up to 5 donor pairs.......  per certificate.           76.00           79.00           81.00           83.00
    Each additional group of    per group of               34.00           35.00           36.00           37.00
     donor pairs, up to 5        donor pairs.
     pairs per group, on the
     same certificate.
    Semen.....................  per certificate.           46.00           48.00           49.00           51.00
Germ plasm being imported: \2\
    Embryo....................  per load........           55.00           57.00           58.00           60.00
    Semen.....................  per load........           55.00           57.00           58.00           60.00
Import compliance assistance:
    Simple (2 hours or less)..  per release.....           64.00           66.00           68.00           70.00
    Complicated (more than 2    per release.....          164.00          169.00          174.00          180.00
     hours).
Processing VS form 16-3,
 ``Application for Permit to
 Import Controlled Material/
 Import or Transport Organisms
 or Vectors'':
    For permit to import fetal  per application.          283.00          292.00          300.00          309.00
     bovine serum when
     facility inspection is
     required.
    For all other permits.....  per application.           36.00           37.00           38.00           39.00
    Amended application.......  per amended                15.00           15.00           16.00           16.00
                                 application.
    Application renewal.......  per application.           19.00           20.00           21.00           21.00
Release from export
 agricultural hold:
    Simple (2 hours or less)..  per release.....           64.00           66.00           68.00           70.00

[[Page 52008]]

 
    Complicated (more than 2    per release.....          164.00          169.00          174.00         180.00
     hours).
----------------------------------------------------------------------------------------------------------------
\1\ This user fee includes a single inspection and resealing of the container at the APHIS employee's regular
  tour of duty station or at a limited port. For each subsequent inspection and resealing required, the hourly
  user fee in Sec.  130.30 will apply.
\2\ For inspection of empty containers being imported into the United States, the hourly user fee in Sec.
  130.30 will apply, unless a user fee has been assessed under 7 CFR part 354.3.

    (b) [Reserved]
(Approved by the Office of Management and Budget under control numbers 
0579-0015, 0579-0040, 0579-0055 and 0579-0094)


Sec. 130.9  [Removed and Reserved]

    8. Section 130.9 is removed and reserved.

    9. Section 130.10 is amended as follows:
    a. By revising paragraph (a).
    b. By revising the table in paragraph (b).
    c. By revising paragraph (d).


Sec. 130.10  User fees for pet birds.

    (a) User fees for pet birds of U.S. origin returning to the United 
States, except pet birds of U.S. origin returning from Canada, are as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                             User fee
                                                 ---------------------------------------------------------------
            Service                   Unit        Oct. 1, 2000--  Oct. 1, 2001--  Oct. 1, 2002--
                                                  Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
(1) Which have been out of the  per lot.........          $99.00         $102.00         $105.00         $108.00
 United States 60 days or less.
(2) Which have been out of the  per lot.........          236.00          243.00          250.00          257.00
 United States more than 60
 days.
----------------------------------------------------------------------------------------------------------------

    (b) * * *

----------------------------------------------------------------------------------------------------------------
                                                                          Daily user fee
                                                 ---------------------------------------------------------------
           Number of birds in isolette             Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
                                                  Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
1...............................................           $8.50           $8.75           $9.00           $9.25
2...............................................           10.00           11.00           11.00           11.00
3...............................................           12.00           13.00           13.00           13.00
4...............................................           14.00           15.00           15.00           15.00
5 or more.......................................           16.00           17.00           17.00           18.00
----------------------------------------------------------------------------------------------------------------

* * * * *
    (d) If the importer requests additional services, then the user 
fees for those services will be calculated at the hourly rate user fee 
listed in Sec. 130.30, for each employee required to perform the 
service.
(Approved by the Office of Management and Budget under control number 
0579-0094)

    10. Section 130.11 is revised to read as follows:


Sec. 130.11  User fees for inspecting and approving import/export 
facilities and establishments.

    (a) User fees for the inspection of various import and export 
facilities and establishments are listed in the following table. 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 Secs. 130.50 and 130.51.

----------------------------------------------------------------------------------------------------------------
                                                                             User fee
                                                 ---------------------------------------------------------------
            Service                   Unit         Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
                                                  Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
Embryo collection center        per year........         $347.00         $358.00         $369.00         $380.00
 inspection and approval (all
 inspections required during
 the year for facility
 approval).
Inspection for approval of      per inspection..          977.00          977.00          977.00          977.00
 biosecurity level three
 laboratories (all inspections
 related to approving the
 laboratory for handling one
 defined set of organisms or
 vectors).
Inspection for approval of pet
 food manufacturing,
 rendering, blending, or
 digest facilities:
    Initial approval..........  for all                   404.75          404.75          404.75          404.75
                                 inspections
                                 required during
                                 the year.

[[Page 52009]]

 
    Renewal...................  for all                   289.00          289.00          289.00          289.00
                                 inspections
                                 required during
                                 the year.
Inspection for approval of pet
 food spraying and drying
 facilities:
    Initial approval..........  for all                   275.00          275.00          275.00          275.00
                                 inspections
                                 required during
                                 the year.
    Renewal...................  for all                   162.00          162.00          162.00          162.00
                                 inspections
                                 required during
                                 the year.
Inspection for approval of
 slaughter establishment:
    Initial approval (all       per year........          342.00          352.00          362.00          373.00
     inspections).
    Renewal (all inspections).  per year........          296.00          305.00          314.00          323.00
Inspection of approved
 establishments, warehouses,
 and facilities under 9 CFR
 parts 94 through 96:
    Approval (compliance        per year........          365.00          375.00          386.00          398.00
     agreement) (all
     inspections for first
     year of 3-year approval).
    Renewed approval (all       per year........          211.00          217.00          223.00          230.00
     inspections for second
     and third years of 3-year
     approval).
----------------------------------------------------------------------------------------------------------------

    (b) [Reserved]

    11. Section 130.20 is amended as follows:
    a. By revising the section heading.
    b. In paragraph (a), by revising the table.
    c. In paragraph (b)(1) introductory text, by adding the words ``or 
vaccinations'' after the word ``tests'' in the second sentence.
    d. In paragraph (b)(1), by revising the table.
    e. In paragraph (c), by removing the reference to ``Sec. 130.21'' 
and adding in its place a reference to ``Sec. 130.30''.


Sec. 130.20  User fees for endorsing export certificates.

    (a) * * *

----------------------------------------------------------------------------------------------------------------
                                                                             User fee
                                                 ---------------------------------------------------------------
             Certificate categories                Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
                                                  Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
Animal and nonanimal products...................          $30.00          $30.00          $31.00          $32.00
Hatching eggs...................................           28.00           28.00           29.00           30.00
Poultry, including slaughter poultry............           28.00           28.00           29.00           30.00
Slaughter animals (except poultry) moving to               32.00           33.00           34.00           35.00
 Canada or Mexico...............................
Other endorsements or certifications............           22.00           22.00           23.00           24.00
----------------------------------------------------------------------------------------------------------------

    (b)(1) * * *

----------------------------------------------------------------------------------------------------------------
                                                                             User fee
                                                 ---------------------------------------------------------------
  Number of tests or vaccinations and Number of    Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
      animals or birds  on the certificate        Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
1-2 tests or vaccinations
Nonslaughter horses to Canada:
    First animal................................          $35.00          $36.00          $37.00          $38.00
    Each additional animal......................            4.00            4.00            4.25            4.25
Other animals or birds:
    First animal................................           70.00           72.00           74.00           76.00
    Each additional animal......................            4.00            4.00            4.25            4.25
3-6 tests or vaccinations
    First animal................................           86.00           88.00           91.00           94.00
    Each additional animal......................            6.75            7.00            7.00            7.25
7 or more tests or vaccinations
    First animal................................          100.00          103.00          106.00          109.00
    Each additional animal......................            8.00            8.25            8.25            8.50
----------------------------------------------------------------------------------------------------------------

* * * * *


Sec. 130.21  [Removed and Reserved]

    12. Section 130.21 is removed and reserved.

    13. A new Sec. 130.30 is added to read as follows:


Sec. 130.30  Hourly rate and minimum user fees.

    (a) User fees for import- or export-related veterinary services 
listed in paragraphs (a)(1) through (a)(13) of this

[[Page 52010]]

section, except those services covered by flat rate user fees elsewhere 
in this part, will be calculated at the hourly rate listed in the 
following table for each employee required to perform the service. 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 Secs. 130.50 and 130.51.

----------------------------------------------------------------------------------------------------------------
                                                                             User fee
                                                 ---------------------------------------------------------------
                                                   Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
                                                  Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
Hourly rate:
    Per hour....................................          $76.00          $80.00          $84.00          $84.00
    Per quarter hour............................           19.00           20.00           21.00           21.00
Per service minimum fee.........................           23.00           24.00           24.00           25.00
----------------------------------------------------------------------------------------------------------------

    (1) Providing services to live animals for import or entry at 
airports, ocean ports, and rail ports.
    (2) Conducting inspections, including laboratory and facility 
inspections, required to obtain permits, either to import animal 
products, aquaculture products, organisms or vectors, or to maintain 
compliance with import permits.
    (3) Obtaining samples required to be tested, either to obtain 
import permits or to ensure compliance with import permits.
    (4) Providing services for imported birds or ratites that are not 
subject to quarantine.
    (5) Supervising the opening of in-bond shipments.
    (6) Providing services for in-bond or in-transit animals to exit 
the United States.
    (7) Inspecting an export isolation facility and the animals in it.
    (8) Supervising animal or bird rest periods prior to export.
    (9) Supervising loading and unloading of animals or birds for 
export shipment.
    (10) Inspecting means of conveyance used to export animals or 
birds.
    (11) Conducting inspections under part 156 of this chapter.
    (12) Inspecting and approving an artificial insemination center or 
a semen collection center or the animals in it.
    (13) Providing other import-or export-related veterinary services 
for which there is no flat rate user fee specified elsewhere in this 
part.
    (b) When do I pay an additional amount for employee(s) working 
overtime? You must pay an additional amount if you need an APHIS 
employee to work on a Sunday, on a holiday, or at any time outside the 
normal tour of duty of that employee. Instead of paying the hourly rate 
user fee, you pay the rate listed in the following table for each 
employee needed to get the work done.

----------------------------------------------------------------------------------------------------------------
                                                                       Premium rate user fee
                                                 ---------------------------------------------------------------
  Overtime rates (outside the employee's normal    Oct. 1, 2000-   Oct. 1, 2001-   Oct. 1, 2002-
                  tour of duty)                   Sept. 30, 2001  Sept. 30, 2002  Sept. 30, 2003     Beginning
                                                                                                   Oct. 1, 2003
----------------------------------------------------------------------------------------------------------------
Premium hourly rate Monday through Saturday and
 holidays:
    Per hour....................................          $88.00          $92.00          $96.00         $100.00
    Per quarter hour............................           22.00           23.00           24.00           25.00
Premium hourly rate for Sundays:
    Per hour....................................          104.00          104.00          108.00          112.00
    Per quarter hour............................           26.00           26.00           27.00           28.00
----------------------------------------------------------------------------------------------------------------

(Approved by the Office of Management and Budget under control numbers 
0579-0055 and 0579-0094)

    14. Section 130.50 is amended as follows:
    a. By revising the paragraph (b)(3)(ii).
    b. In paragraph (c)(2), by removing the reference to 
``Sec. 130.21'' and adding in its place a reference to ``Sec. 130.30''.
    c. In paragraph (c)(5), by removing the reference to ``Sec. 130.9'' 
and adding in its place a reference to ``Sec. 130.30''.


Sec. 130.50  Payment of user fees.

* * * * *
    (b) * * *
    (3) * * *
    (ii) What amount do I pay if I receive an hourly rate user fee 
service? Instead of paying the normal hourly rate user fee under 
Sec. 130.30(a), you pay the premium rate listed in Sec. 130.30(b) for 
each employee needed to get the work done.
* * * * *

    Done in Washington, DC, this 22nd day of August 2000.
Bobby R. Acord,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 00-21898 Filed 8-25-00; 8:45 am]
BILLING CODE 3410-34-U