[Federal Register Volume 66, Number 143 (Wednesday, July 25, 2001)]
[Rules and Regulations]
[Pages 38526-38528]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18548]


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DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 20

RIN 0551-AA51


Export Sales Reporting Requirements

AGENCY: Office of the Secretary, USDA.

ACTION: Final rule.

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

DATES: The final rule is effective August 24, 2001.

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

SUPPLEMENTARY INFORMATION:

Executive Order 12372

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

Executive Order 12988

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

Executive Order 12866

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

Regulatory Flexibility Act

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

Paperwork Reduction Act

    In accordance with provisions of the Paperwork Reduction Act of 
1995, the Department of Agriculture (Department) submitted a revised 
information collection package to OMB (OMB control number 0551-0007) to 
support the proposed rule. The proposed rule, published on March 3, 
2000 (65 FR 11483-11485), required export sales reporting for fresh, 
chilled, or frozen muscle cuts of beef, and fresh, chilled, or frozen 
muscle cuts of pork. Since the final rule does not include pork, the 
Department will request a revision of the information collection to 
support the final rule.
    The Department is required under section 913(b)(1) of Pub. L. 106-
78 (the Agriculture, Rural Development, Food and Drug Administration, 
and Related Agencies Appropriations Act, 2000), to establish a 
streamlined electronic system to collect export sales information and 
data for muscle cuts of meat food products in the least intrusive 
manner possible. Prior to establishing the electronic system, the 
Department will issue a Federal Register notice soliciting public 
comments on the requested revision of the information collection, and 
on the electronic forms and program developed by the Department to 
provide exporters the opportunity to submit export sales reports for 
beef electronically. The Department will also request OMB approval of 
forms that are being developed for electronic submission of export 
sales reports for fresh, chilled, or frozen muscle cuts of beef. All 
public comments received with respect to export sales reporting for 
beef will be

[[Page 38527]]

considered prior to implementation of an electronic reporting system, 
and will also become a matter of public record. Copies of the 
information collection may be obtained from Kimberly Chisley, the 
Agency Information Collection Coordinator, at (202) 720-2568 or e-mail 
at [email protected].

Background

Authority

    Section 602 of the Agricultural Trade Act of 1978, as amended, 
requires the reporting of information pertaining to the contract for 
export sale of certain specified agricultural commodities and other 
commodities that may be designated by the Secretary. In accordance with 
Sec. 602, individual weekly reports submitted shall remain confidential 
and shall be compiled and published in compilation form each week 
following the week of reporting. Any person who knowingly fails to make 
a report shall be fined not more than $25,000 or imprisoned for not 
more than one year, or both.
    Regulations at 7 CFR part 20 implement the reporting requirements, 
and prescribe a system for reporting information pertaining to 
contracts for export sales. Appendix 1 to the Regulation lists all 
commodities that are subject to the export sales reporting 
requirements. Section 921 of Pub. L. 106-78 amended Sec. 602(a)(1) of 
the Agricultural Trade Act of 1978 (7 U.S.C. 5712(a)(1)) by adding 
``beef'' to the list of specified commodities for which all exporters 
shall report weekly export sales reporting information.

Export Sales Reporting Requirement for Meat

    An Advance Notice of Proposed Rulemaking (ANPR) was published on 
November 14, 1996 (61 FR 58343-58345) requesting public comments on a 
proposal to amend 7 CFR part 20 to require weekly export sales 
reporting for meat and meat products. In response to the ANPR, 57 
submissions were received from firms, trade associations, family farms, 
and interested parties. The majority of the submission (36) were from 
the poultry industry opposing export sales reporting for poultry and 
poultry products. Most submissions stated that export sales reporting 
would be of limited benefit in an industry where there is vertical 
integration and widespread use of grower contracts. In the poultry 
sector, contract growers provide labor, and their remuneration is not 
tied to export sales, but to such factors as feed conversion ratios and 
mortality rates. Poultry exporters reasoned that reporting costs would 
outweigh benefits that may be provided to growers. Submissions from the 
beef and pork industries generally supported export sales reporting as 
a means of obtaining accurate and timely data on export shipments and 
export sales.
    The proposed rule, published on March 3, 2000 (65 FR 11483-11485), 
proposed that 7 CFR part 20 be amended to require weekly export sales 
reporting for fresh, chilled, or frozen muscle cuts of beef, and for 
fresh, chilled or frozen muscle cuts of pork. The Department received 
10 submissions in response to the Federal Register notice. Of these 
submissions, eight strongly opposed export sales reporting for pork, 
and two submissions (from outside the pork industry) supported the 
concept of export sales reporting for beef and pork (one recommended 
more detailed reporting). The major concerns about extending coverage 
of the Regulation to pork were that the data required would exceed the 
level of detail and specific sales information needed to ascertain 
market conditions for live hogs and pork products; valuable market 
information would be provided to global competitors; and incentives for 
innovation and aggressive marketing by U.S. pork exporters would be 
removed. In addition, since pork customers often have precise demands 
for quality, trimmings, and cutting specifications, pork exports are 
often specialized and processed under labor-intensive, highly 
proprietary programs. Release of such information to foreign 
competitors could result in lower revenue for U.S. products sold 
abroad, and increased costs for reporting could lower net return for 
the whole system, including producers. A few submissions also noted 
that the Congress had the opportunity to mandate export sales reporting 
for pork under Sec. 602(a)(1) of Pub. L. 106-78 and elected not to do 
so. Public comments submitted in response to the proposed rule 
indicated that pork producers, processors, and exporters had become 
largely united in opposing export sales reporting. As an alternative to 
export sales reporting for pork, there was general agreement that 
implementation of a streamlined and more timely system for release of 
data from the existing export certificate program would provide 
information in a way that would not adversely affect export markets.
    This final rule amends 7 CFR part 20 to add fresh, chilled, or 
frozen muscle cuts of beef. For all commodities subject to the weekly 
reporting requirement of this Regulation, information and data related 
to the quantity, country destinations, and marketing year of shipments 
are collected and released on a weekly basis reflecting the 
``outstanding commitments'' of the specified commodities for export. 
New outstanding quantities are established each week by adding the new 
export sales activity to the previous outstanding balances and 
subtracting the current week's shipments plus downward contract 
adjustments. Although this is not official U.S. trade data, it is 
widely used as an early indicator of export activity and is available 
the week following the week of reporting. The addition of fresh, 
chilled, or frozen muscle cuts of beef to the reporting program should 
provide the livestock sector with quality up-to-date information and 
data for preparing more accurate analysis of changing market conditions 
and providing relevant foreign market demand information to farm-level 
decision makers. These timely reports should also benefit the private 
sector as well as the Department in preparing economic forecasts and 
decisions concerning an orderly flow of beef into the domestic and 
export markets.

    Accordingly, CFR part 20, Export Sales Reporting Requirements is 
amended as follows:

List of Subjects in 7 CFR Part 20

    Agricultural commodities, Exports, Reporting.

Final Rule

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

    Authority: 7 U.S.C. 5712.


    2. Amend Appendix 1 to add the following entry, under the indicated 
column headings, after the entry for ``Cattle, calf, and kip, wet 
blues--splits, excluding grain splits.'':

[[Page 38528]]

Appendix 1 to Part 20--Commodities Subject to Reports, Units of 
Measure to Be Used in Reporting, and Beginning and Ending Dates of 
Marketing Years

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                                       Units of measure to be   Beginning of marketing
      Commodity to be reported           used in reporting               year            End of  marketing  year
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                  *                  *                  *                  *                  *
Beef, fresh, chilled or frozen:       Metric tons............  Jan. 1..................  Dec. 31.
 muscle cuts of beef.
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    Signed at Washington, D.C. on July 18, 2001.
Mattie R. Sharpless,
Acting Administrator, Foreign Agricultural Service.
[FR Doc. 01-18548 Filed 7-24-01; 8:45 am]
BILLING CODE 3410-10-P