[Federal Register Volume 66, Number 249 (Friday, December 28, 2001)]
[Rules and Regulations]
[Pages 67071-67073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-32003]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1230

[No. LS-01-02]


Pork Promotion, Research, and Consumer Information Order--
Increase in Importer Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer 
Information Act of 1985 (Act) and the Pork Promotion, Research, and 
Consumer Information Order (Order) issued thereunder, this final rule 
increases by seven-hundredths to one-tenth of a cent per pound the 
amount of the assessment per pound due on imported pork and pork 
products to reflect an increase in the 2000 average price for domestic 
barrows and gilts. This final action brings the equivalent market value 
of the live animals from which such imported pork and pork products 
were derived in line with the market values of domestic porcine 
animals. These changes will facilitate the continued collection of 
assessments on imported porcine animals, pork, and pork products.

EFFECTIVE DATE: January 28, 2002.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing 
Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION:   

Executive Orders 12866 and 12988 and Regulatory Flexibility Act

    The Office of Management and Budget has waived the review process 
required by Executive Order 12866 for this action.
    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect. The Act states that the statute is intended to occupy the field 
of promotion and consumer education involving pork and pork products 
and of obtaining funds thereof from pork producers and that the 
regulation of such activity (other than a regulation or requirement 
relating to a matter of public health or the provision of State or 
local funds for such activity) that is in addition to or different from 
the Act may not be imposed by a State.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under Sec. 1625 of the Act, a 
person subject to an order may file a petition with the Department of 
Agriculture (USDA) stating that such order, a provision of such order 
or an obligation imposed in connection with such order is not in 
accordance with the law; and requesting a modification of the order or 
an exemption from the order. Such person is afforded the opportunity 
for a hearing on the petition. After the hearing, USDA would rule on 
the petition. The Act provides that the district court of the United 
States in the district in which a person resides or does business has 
jurisdiction to review USDA's determination, if a complaint is filed 
not later than 20 days after the date such person receives notice of 
such determination.
    This action also was reviewed under the Regulatory Flexibility Act 
(5 United States Code (U.S.C.) 601 et seq.). The effect of the Order 
upon small entities initially was discussed in the September 5, 1986, 
issue of the Federal Register (51 FR 31898). It was determined at that 
time that the Order would not have a significant effect upon a 
substantial number of small entities. Many of the estimated 500 
importers may be classified as small entities under the Small Business 
Administration definition (13 CFR 121.201).
    This final rule will increase the amount of assessments on imported 
pork and pork products subject to assessment by seven-hundredths to 
one-tenth of a cent per pound, or as expressed in cents per kilogram, 
fifteen-hundredths to twenty-two-hundredths of a cent per kilogram. 
This increase is consistent with the increase in the annual average 
price of domestic barrows and gilts for calendar year 2000. The average 
annual market price increased from $31.46 in 1999 to $42.70 in 2000, an 
increase of about 36 percent. Adjusting the assessments on imported 
pork and pork products would result in an estimated increase in 
assessments of $713,000 over a 12-month period. Assessments collected 
on imported hogs, pork, and pork products for 2000 were $3,384,096. 
Accordingly, the Administrator of the Agricultural Marketing Service 
(AMS) has determined that this action would not have a significant 
economic impact on a substantial number of small entities.
    The Act (7 U.S.C. 4801-4819) approved December 23, 1985, authorized 
the establishment of a national pork promotion, research, and consumer 
information program. The program was funded by an initial assessment 
rate of 0.25 percent of the market value of all porcine animals 
marketed in the United States and on imported porcine animals with an 
equivalent assessment on pork and pork products. However, that rate was 
increased to 0.35 percent in 1991 (56 FR 51635) and to 0.45 percent 
effective September 3, 1995 (60 FR 29963). The final Order establishing 
a pork promotion, research, and consumer information program was 
published in the September 5, 1986, issue of the Federal Register (51 
FR 31898; as corrected, at 51 FR 36383 and amended at 53 FR 1909, 53 FR 
30243, 56 FR 4, 56 FR 51635, 60 FR 29963, 61 FR 29002, 62 FR 26205, 63 
FR 45936, and 64 FR

[[Page 67072]]

44643) and assessments began on November 1, 1986.
    The Order requires importers of porcine animals to pay U.S. Customs 
Service (USCS), upon importation, the assessment of 0.45 percent of the 
animal's declared value and importers of pork and pork products to pay 
USCS, upon importation, the assessment of 0.45 percent of the market 
value of the live porcine animals from which such pork and pork 
products were produced. This final rule will increase the assessments 
on all of the imported pork and pork products subject to assessment as 
published in the Federal Register as a final rule August 17, 1999, and 
effective on September 16, 1999 (64 FR 44643). This increase is 
consistent with the increase in the annual average price of domestic 
barrows and gilts for calendar year 2000 as calculated by USDA's, AMS, 
Livestock and Grain Market News (LGMN) Branch. This increase in 
assessments will make the equivalent market value of the live porcine 
animal from which the imported pork and pork products were derived 
reflect the recent increase in the market value of domestic porcine 
animals, thereby promoting comparability between importer and domestic 
assessments. This final rule will not change the current assessment 
rate of 0.45 percent of the market value.
    The methodology for determining the per pound amount of assessments 
for imported pork and pork products was described in the Supplementary 
Information accompanying the Order and published in the September 5, 
1986, Federal Register at 51 FR 31901. The weight of imported pork and 
pork products is converted to a carcass weight equivalent by utilizing 
conversion factors that are published in USDA's Agricultural Handbook 
No. 697 ``Conversion Factors and Weights and Measures.'' These 
conversion factors take into account the removal of bone, weight lost 
in cooking or other processing, and the nonpork components of pork 
products. Secondly, the carcass weight equivalent is converted to a 
live animal equivalent weight by dividing the carcass weight equivalent 
by 70 percent, which is the average dressing percentage of porcine 
animals in the United States. Thirdly, the equivalent value of the live 
porcine animal is determined by multiplying the live animal equivalent 
weight by an annual average market price for barrows and gilts as 
calculated by LGMN Branch. Finally, the equivalent value is multiplied 
by the applicable assessment rate of 0.45 percent due on imported pork 
and pork products. The end result is expressed in an amount per pound 
for each type of pork or pork product. To determine the amount per 
kilogram for pork and pork products subject to assessment under the Act 
and Order, the cents per pound assessments are multiplied by a metric 
conversion factor 2.2046 and carried to the sixth decimal.
    Since 1999 when the last adjustment was made in the amount of the 
assessment due on live hogs and imported pork and pork products (64 FR 
44643), there has been a change in the way LGMN Branch reports hog 
prices. For calendar year 1998, the annual average price for barrows 
and gilts was based on the average price for barrows and gilts at five 
terminal markets. LGMN Branch no longer reports the average price at 
terminal markets. When the Order was published on September 5, 1986, 
LGMN Branch reported an annual average price of barrows and gilts based 
on the seven major markets (East St. Louis, Illinois; Omaha, Nebraska; 
Peoria, Illinois; St. Joseph, Missouri; South St. Paul, Minnesota; 
Sioux City, Iowa; and Sioux Falls, South Dakota) and that price was 
used to calculate the equivalent live animal value of imported pork and 
pork products. In 1991, one of the seven markets, Peoria, Illinois, 
closed and LGMN Branch changed its report to include the annual average 
price from only six markets. Again in 1994, another market, East St. 
Louis, Illinois, closed and LGMN began reporting the annual average 
price for barrows and gilts based on five markets. In December 1998, 
two more of the original seven markets, Sioux City, Iowa, and Omaha, 
Nebraska, closed and LGMN Branch discontinued reporting market prices 
based on the three remaining markets because these markets did not have 
a sufficient volume of sales to accurately reflect a national average 
price for barrows and gilts.
    In 1999, LGMN Branch replaced the five-market report with the Iowa-
Southern Minnesota hog report as the source for the national average 
price for barrows and gilts. This average price, comparable to the 
former five-market annual average price, was quoted for 49-52 percent 
lean yield barrows and gilts weighing an average of 240-280 pounds live 
weight. LGMN Branch reported these prices daily as well as publishing a 
monthly average price in the ``Livestock, Meat and Wool Weekly Summary 
and Statistics.'' While LGMN Branch discontinued publishing an annual 
average price of barrows and gilts in the ``Livestock, Meat and Wool 
Weekly Summary and Statistics,'' they had calculated the annual average 
price for barrows and gilts based on the 12 monthly average prices in 
the Iowa-Southern Minnesota hog reports. This annual average price was 
used in the calculations for determining the per pound amount of 
assessments for imported pork and pork products. Further changes are 
anticipated in the future due to implementation of the Livestock 
Mandatory Price Reporting program (65 FR 75464) on April 2, 2001.
    The formula in the preamble for the Order at 51 FR 31901 
contemplated that it would be necessary to recalculate the equivalent 
live animal value of imported pork and pork products to reflect changes 
in the annual average price of domestic barrows and gilts to maintain 
equity of assessments between domestic porcine animals and imported 
pork and pork products.
    The last time the cents per pound assessments for imported pork and 
pork products listed in the table in Sec. 1230.110(b) were adjusted was 
for calendar year 1998 (64 FR 44643). The equivalent live animal value 
of imported pork and pork products was recalculated for calendar year 
1999 and when compared to the equivalent live animal value for calendar 
year 1998, no adjustments in the cents per pound assessments were 
necessary for imported pork and pork products subject to assessment 
under the Act and Order. In 1999 the average annual price for barrows 
and gilts was $31.46 per hundredweight as determined by LGMN Branch 
based on monthly average prices for barrows and gilts published in the 
``Livestock, Meat and Wool Weekly Summary and Statistics.'' The 1998 
average price for barrows and gilts was $31.82 per hundredweight. The 
cents per pound assessments for calendar year 1999 remained the same as 
calendar year 1998.
    The average annual market price increased from $31.46 per 
hundredweight in 1999 to $42.70 per hundredweight in 2000, an increase 
of about 36 percent. This increase will result in a corresponding 
increase in assessments for all Harmonized Tariff Schedule (HTS) 
numbers listed in the table in Sec. 1230.110(b), 64 FR 44643; August 
17, 1999, of an amount equal to seven-hundredths to one-tenth of a cent 
per pound, or as expressed in cents per kilogram, fifteen-hundredths to 
twenty-two hundredths of a cent per kilogram. Based on the Department 
of Commerce's, Bureau of Census, data on the volume of pork and pork 
products imported during 2000, the increase in assessment amounts will 
result in an estimated $713,000 increase in assessments over a 12-month 
period. The assessment rate for imported live hogs is not affected by 
the change in the

[[Page 67073]]

cents per pound assessment rate for imported pork and pork products.
    On August 13, 2001, AMS published in the Federal Register (66 FR 
42469) a proposed rule which would increase the per pound assessment on 
imported pork and pork products consistent with the increase in the 
2000 average price of domestic barrows and gilts to provide 
comparability between imported and domestic assessments. The proposal 
was published with a request for comments by September 12, 2001. No 
comments were received.
    Accordingly, this final rule establishes the new per-pound and per-
kilogram assessments on imported pork and pork products.

List of Subjects in 7 CFR Part 1230

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreement, Meat and meat products, Pork and pork 
products.
    For the reasons set forth in the preamble, 7 CFR part 1230 is 
amended as follows:

PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION

    1. The authority citation for 7 CFR part 1230 continues to read as 
follows:

    Authority: 7 U.S.C. 4801-4819.

Subpart B--[Amended]

    2. Section 1230.110 is revised to read as follows:


Sec. 1230.110  Assessments on imported pork and pork products.

    (a) The following Harmonized Tariff Schedule (HTS) categories of 
imported live porcine animals are subject to assessment at the rate 
specified.

------------------------------------------------------------------------
           Live porcine animals                      Assessment
------------------------------------------------------------------------
0103.10.0000..............................  0.45 percent Customs Entered
                                             Value.
0103.91.0000..............................  0.45 percent Customs Entered
                                             Value.
0103.92.0000..............................  0.45 percent Customs Entered
                                             Value.
------------------------------------------------------------------------

    (b) The following HTS categories of imported pork and pork products 
are subject to assessment at the rates specified.

------------------------------------------------------------------------
                                                          Assessment
               Pork and Pork Products                -------------------
                                                      cents/lb  cents/kg
------------------------------------------------------------------------
0203.11.0000........................................       .27   .595242
0203.12.1010........................................       .27   .595242
0203.12.1020........................................       .27   .595242
0203.12.9010........................................       .27   .595242
0203.12.9020........................................       .27   .595242
0203.19.2010........................................       .32   .705472
0203.19.2090........................................       .32   .705472
0203.19.4010........................................       .27   .595242
0203.19.4090........................................       .27   .595242
0203.21.0000........................................       .27   .595242
0203.22.1000........................................       .27   .595242
0203.22.9000........................................       .27   .595242
0203.29.2000........................................       .32   .705472
0203.29.4000........................................       .27   .595242
0206.30.0000........................................       .27   .595242
0206.41.0000........................................       .27   .595242
0206.49.0000........................................       .27   .595242
0210.11.0010........................................       .27   .595242
0210.11.0020........................................       .27   .595242
0210.12.0020........................................       .27   .595242
0210.12.0040........................................       .27   .595242
0210.19.0010........................................       .32   .705472
0210.19.0090........................................       .32   .705472
1601.00.2010........................................       .38   .837748
1601.00.2090........................................       .38   .837748
1602.41.2020........................................       .41   .903886
1602.41.2040........................................       .41   .903886
1602.41.9000........................................       .27   .595242
1602.42.2020........................................       .41   .903886
1602.42.2040........................................       .41   .903886
1602.42.4000........................................       .27   .595242
1602.49.2000........................................       .38   .837748
1602.49.4000........................................       .32   .705472
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    Dated: December 21, 2001.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 01-32003 Filed 12-27-01; 8:45 am]
BILLING CODE 3410-02-P