[Federal Register Volume 66, Number 148 (Wednesday, August 1, 2001)]
[Rules and Regulations]
[Pages 39628-39632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19182]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 130

[Docket No. 99-060-2]


Veterinary Services User Fees; Fees for Permit Applications

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: We are amending the user fees for processing applications for 
permits to import and transport certain animal products, organisms, 
vectors, and germ plasm. We are also establishing new user fees that 
would pay the cost of processing applications to import live animals. 
We are taking this action in order to ensure that we recover our costs.

EFFECTIVE DATE: August 31, 2001.

FOR FURTHER INFORMATION CONTACT: For information concerning program 
operations for Veterinary Services, contact Ms. Inez Hockaday, Acting 
Director, Management Support Staff, VS, APHIS, 4700 River Road Unit 44,

[[Page 39629]]

Riverdale, MD 20737-1231; (301) 734-7517.
    For information concerning rate development of the amended user 
fees, contact Mrs. Kris Caraher, Accountant, Financial Systems and 
Services Branch, Financial Management Division, MRPBS, APHIS, 4700 
River Road Unit 54, Riverdale, MD 20737-1232; (301) 734-8351.

SUPPLEMENTARY INFORMATION:

Background

    User fees to reimburse the Animal and Plant Health Inspection 
Service (APHIS) for the costs of providing veterinary diagnostic 
services and import-and export-related services for live animals and 
birds and animal products are contained in 9 CFR part 130. Section 
130.8 lists miscellaneous flat rate user fees.
    On November 13, 2000, we published in the Federal Register (65 FR 
67657-67663, Docket No. 99-060-1) a proposal to amend existing user 
fees for processing applications for permits to import and transport 
certain animal products, organisms, vectors, and germ plasm. In that 
document, we also proposed to establish new user fees that would pay 
the cost of processing applications to import live animals.
    We solicited comments concerning our proposal for 60 days ending 
January 12, 2001. We did not receive any comments. Therefore, for the 
reasons given in the proposed rule, we are adopting the proposed rule 
as a final rule, without change.

Executive Order 12866 and Regulatory Flexibility Act

    This rule has been reviewed under Executive Order 12866. The rule 
has been determined to be not significant for the purposes of Executive 
Order 12866 and, therefore, has not been reviewed by the Office of 
Management and Budget.
    In accordance with 5 U.S.C. 604, we have performed a final 
regulatory flexibility analysis, which is set out below, regarding the 
economic effects of this rule on small entities.
    We are amending the user fees for processing applications for 
permits to import and transport certain animal products, organisms, 
vectors, and germ plasm. We are also establishing new user fees that 
will pay the cost of processing applications to import live animals. We 
are taking this action in order to ensure that we recover our costs.
    In our proposed rule, we specifically solicited comments concerning 
the potential economic effects of the proposed fee increases and new 
fees. As noted previously, we did not receive any comments in response 
to our proposed rule.

User Fees for the Importation of Germ Plasm

    Prior to the effective date of this rule, APHIS charged a fee of 
$55 for processing applications to import germ plasm. This rule 
replaces that single fee with two separate fees: One for processing 
initial applications for permits, and one for processing amended 
applications. The fee for processing each new permit application is 
$94, and the fee for processing each amended permit application is $47.
    In fiscal year (FY) 1999, APHIS processed 448 applications for 
permits to import germ plasm (semen and embryos), generating total 
revenues of $17,696. We estimate that 90 of those applications were 
amended applications, and the rest were new applications.
    Had the amended fee schedule been in effect during FY 1999\1\, 
APHIS would have generated approximately $37,882 from processing those 
applications, an increase of $20,186 over actual revenues for that 
year. Further, as a result of increased world trade, it is likely that 
APHIS'' annual revenues from processing product applications will 
increase over time.
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    \1\ For FY 1999, fees for processing applications for permits to 
import germ plasm were set at $39.50. Data on fee receipts based on 
currently scheduled fees, which were effective October 1, 2000, are 
not available.
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    The number of different entities that submitted applications in FY 
1999 and the number of applications submitted by each are not 
available. However, because approximately 90 entities submitted amended 
applications during the year, we know that the number of different 
entities is significantly less than the total application count of 448. 
The economic effect on individual entities will vary, depending on the 
size of the entity and the number of permits required. For an entity 
that requires only a few permits each year, as is likely to be the case 
with the smaller entities that are affected, the amended fees are not 
likely to have a significant economic impact. However, an entity that 
is large enough to require a large number of permits is also likely to 
be large enough to easily absorb the increased fees.

User Fees for Processing Applications for Permits To Import Animal 
Products

    APHIS charges applicants a fee for processing their applications 
for permits to import animal products (including byproducts, organisms, 
and vectors). The fees vary, depending on such factors as the type of 
application and the type of product. The following table shows the 
scheduled user fees prior to this final rule and the amended user fees:

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                                                                  Previously scheduled user fees                                     Amended user fee
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                                                                                                                                      Beginning with
            Service                Oct. 1, 2000-  Sept.    Oct. 1, 2001-  Sept.    Oct. 1, 2002-  Sept.     Beginning  Oct. 1,    effective date of this
                                         30, 2001                30, 2002                30, 2003                  2003                    rule
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Processing a permit application  $283.00 per application  $292.00 per             $300.00 per             $309.00 per             $322.00 per
 to import fetal bovine serum                              application.            application.            application.            application
 when inspection of a facility
 is required.
Processing an initial permit     36.00 per application..  37.00 per application.  38.00 per application.  39.00 per application.  94.00 per application
 application to import certain
 animal products or import or
 transport organisms or vectors.
Processing an amended permit     15.00 per amended        15.00 per amended       16.00 per amended       16.00 per amended       47.00 per amended
 application to import certain    application.             application.            application.            application.            application
 animal products or import or
 transport organisms or vectors.
Processing a renewed permit      19.00 per application..  20.00 per application.  21.00 per application.  21.00 per application.  61.00 per application
 application to import certain
 animal products or import or
 transport organisms or vectors.
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[[Page 39630]]

    Under this final rule, all fees will be increased from their 
current levels. The amended fee amounts were calculated to allow APHIS 
to recover the full costs of processing the applications. The 
previously scheduled fees do not allow for full cost recovery, 
especially given the additional staffing needed to provide applicants 
with a quick turnaround of their permit requests.
    In FY 1999, APHIS processed 2,575 applications for permits to 
import animal products. Of that total, 2 were fetal bovine serum (with 
facility inspection) applications, 856 were initial applications to 
import animal products or import or transport organisms or vectors, 241 
were amended applications, and 1,476 were renewed applications.
    APHIS generated revenues of $48,868.50 from processing the 2,575 
applications in FY 1999.\2\ Had the amended fee schedule been in effect 
during FY 1999, APHIS would have generated $182,351 from processing 
those applications, an increase of $133,482.50 over actual revenues for 
that year. Further, as a result of increased world trade, it is likely 
that APHIS' annual revenues from processing animal product permit 
applications will increase over time.
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    \2\ The revenues collected in FY 1999 are based on collections 
of the fees that were in place during FY 1999.
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    The number of different entities that submitted applications in FY 
1999 and the number of applications submitted by each are not 
available. However, because 241 entities submitted amended applications 
and 1,476 entities submitted renewed applications during the year, we 
know that the number of different entities is significantly less than 
the total application count of 2,575. The economic effect on individual 
entities will vary, depending on the size of the entity and the number 
of permits required. For an entity that requires only a few permits 
each year, as is likely to be the case with the smaller entities that 
are affected, the amended fees are not likely to have a significant 
economic impact. However, an entity that is large enough to require a 
large number of permits is also likely to be large enough to easily 
absorb the increased fees.

User Fees for Processing Applications for Permits To Import Animals

    Under APHIS' regulations, importers must, under certain 
circumstances, apply for and obtain an import permit from the agency 
prior to importing live animals.\3\ Prior to the effective date of this 
rule, APHIS has not charged applicants a fee for processing their 
permit applications.
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    \3\ Whether or not an importer is required to obtain a permit 
from APHIS depends on several factors, including the type of animal 
to be imported and the country of export. The rules are designed to 
protect the health of the U.S. animal population, since such imports 
may pose a risk of introducing animal diseases.
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    Under this final rule, APHIS will charge applicants $94 for each 
new application and $47 for each amended application to import live 
animals. This final rule is intended to shift the cost of processing 
the applications from the general taxpayer (via appropriated funds) to 
the users of those services, i.e., the permit applicants. This final 
rule also removes an existing inequity, since, prior to this final 
rule, APHIS charged applicants a fee for processing their applications 
for permits to import animal products and germ plasm, but has not 
charged applicants a fee for processing applications for permits to 
import live animals.
    In FY 1999, APHIS processed approximately 9,000 applications for 
permits to import animals. Of that total, approximately 7,500 were 
initial applications and 1,500 were amended applications. Had the 
amended fee schedule been in effect during FY 1999, APHIS would have 
generated additional revenues of $775,500 from processing those 
applications. Further, as a result of increased world trade, it is 
likely that APHIS' annual revenues from processing applications for 
permits to import live animals will increase over time.
    The number of different entities that submitted applications in FY 
1999 and the number of applications submitted by each are not 
available. However, because some entities submitted amended 
applications and some entities submitted more than one new application 
during the year, we know that the number of different entities is less 
than the total application count of 9,000.
    Data on the types of entities who submit applications are not 
available, but those entities are believed to be varied, and include 
breeders, commercial researchers, universities, zoos, and private 
individuals. At least some of the commercial entity applicants are 
believed to be brokers acting on behalf of their client customers. Even 
though they do not submit permit applications to APHIS, the client 
customers of brokers are likely to be affected by this rule, since the 
application fees incurred by the brokers are likely to be passed on to 
them. The economic effect on individual entities will vary, depending 
on the size of the entity and the number of permits required. For an 
entity that requires only a few permits each year, as is likely to be 
the case with the smaller entities that are affected, the new user fees 
are not likely to have a significant economic effect. However, an 
entity that is large enough to require a large number of permits is 
also likely to be large enough to easily absorb the increased fees.

Effects on Small Entities

    The Regulatory Flexibility Act requires that agencies consider the 
economic effects of their rules on small entities, i.e., small 
businesses, organizations, and governmental jurisdictions. The changes 
discussed above will affect those entities in the United States that 
import live animals, animal products, and germ plasm. They will be 
affected because they will have to pay new fees, or higher fees, to 
have APHIS process their permit applications.
    The types of entities that may be affected vary widely, and include 
breeders, commercial researchers, universities, zoos, and private 
individuals. At least some of the commercial entities are likely to be 
brokers acting on behalf of their client customers. Even though they 
themselves do not submit permit applications to APHIS, the client 
customers of brokers will be affected by this final rule if the 
increased fees incurred by the brokers are passed on to them.
    The number of different entities that will be affected by this 
final rule and the extent of the economic effects on each are unknown. 
In FY 1999, APHIS processed approximately 12,023 live animal, animal 
product, and germ plasm permit applications, but that figure overstates 
the number of affected entities because some entities submitted more 
than 1 application during the year. Furthermore, the total application 
count of 12,023 includes an unknown number of private individuals in 
the United States who import live animals, animal products, or germ 
plasm for nonbusiness reasons. These private individuals are not 
``entities'' for purposes of this regulatory flexibility analysis.
    It is reasonable to assume that most businesses affected by this 
final rule are small in size. This is because most U.S. businesses in 
general are small, based on the standards of the U.S. Small Business 
Administration (SBA). In 1996, for example, there were 1,197 U.S. firms 
in SIC 0751, a classification comprised of firms primarily engaged in 
performing certain services, including breeding, for cattle, hogs, 
sheep, goats, and poultry. Of those 1,197 firms, 97 percent had less 
than $5 million in sales

[[Page 39631]]

that year, the SBA's small entity threshold. Similarly, in 1996, there 
were 7,408 U.S. firms in SIC 0752, a classification comprised of firms 
primarily engaged in performing certain services for pets, equines, and 
other animal specialties, including breeding services. Of those 7,408 
firms, over 99 percent had less than $5 million in sales that year, the 
SBA's small entity threshold for firms in that SIC category. 
Accordingly, most of the businesses affected by this rule are likely to 
be small in size.
    The economic effect on individual entities will vary, depending on 
the number of permits required by each. For an entity that requires 
only a few permits each year, as is likely to be the case with the 
smaller entities that are affected, the amended fees are not likely to 
have a significant economic effect. For an entity that submits five new 
live animal applications per year, the additional annual cost will be 
$470.
    Further, we believe that in most cases, the cost of applying for a 
permit will be minimal in contrast to the value of the products or 
animals being imported. For instance, animals can range in value from 
less than $150 to well over $10,000. It is common for importers to 
group large amounts of less expensive animals together for a single 
importation, while more valuable animals may be imported alone. In 
either case, the cost of applying for a permit is expected to be 
minimal in comparison to the total value of the animals being imported.
    This rule contains various recordkeeping requirements, which were 
described in our proposed rule, and which have been approved by the 
Office of Management and Budget (see ``Paperwork Reduction Act'' 
below).

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

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.), the information collection or recordkeeping requirements 
included in this rule have been approved by the Office of Management 
and Budget (OMB) under OMB control number 0579-0167 .

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 continues 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 130.4 is added to read as follows:


Sec. 130.4  User fees for processing import permit applications.

    User fees for processing applications for permits to import certain 
animals and animal products (using VS forms 16-3 and 17-129) are listed 
in the table in this section. 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. The table follows:

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                                                                                   User fee
                                                             ---------------------------------------------------
                                                               August 31,    Oct. 1,      Oct. 1,
               Service                         Unit              2001-        2001-        2002-      Beginning
                                                               Sept. 30,    Sept. 30,    Sept. 30,     Oct. 1,
                                                                  2001         2002         2003         2003
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1. Import compliance assistance:
    i. Simple (2 hours or less).....  Per release...........       $64.00       $66.00       $68.00       $70.00
    ii. Complicated (more than 2      Per release...........       164.00       169.00       174.00       180.00
     hours).
2. Processing an application for a
 Permit to import live animals,
 animal products or byproducts,
 organisms, vectors, or germ plasm
 (embryos or semen) or to transport
 organisms or vectors \1\.
    i. Initial Permit...............  Per application.......        94.00        94.00        94.00        94.00
    ii. Amended Permit..............  Per amended                   47.00        47.00        47.00        47.00
                                       application.
    iii. Renewed Permit \2\.........  Per application.......        61.00        61.00        61.00        61.00
3. Processing an application for a    Per application.......       322.00       322.00       322.00      322.00
 Permit to import fetal bovine serum
 when facility inspection is
 required.
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\1\ Using Veterinary Services Form 16-3, ``Application for Permit to Import or Transport Controlled Material or
  Organisms or Vectors,'' or Form 17-129, ``Application for Import or In Transit Permit (Animals, Animal Semen,
  Animal Embryos, Birds, Poultry, or Hatching Eggs).''
\2\ Permits to import germ plasm and live animals are not renewable.


[[Page 39632]]


    3. In Sec. 130.8(a), the table is amended by removing the entries 
for ``Germ plasm being imported'' (including footnote 2), ``Import 
compliance assistance'', and ``Processing VS Form 16-3''.

    Done in Washington, DC, this 26th day of July 2001.
Bobby R. Acord,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 01-19182 Filed 7-31-01; 8:45 am]
BILLING CODE 3410-34-P