[Federal Register Volume 68, Number 45 (Friday, March 7, 2003)]
[Proposed Rules]
[Pages 11008-11009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5363]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 68, No. 45 / Friday, March 7, 2003 / Proposed 
Rules  

[[Page 11008]]



DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

9 CFR Parts 317 and 327

[Docket No. 00-036W]
RIN 0583-AC85


Product Labeling: Defining United States Cattle and United States 
Fresh Beef Products

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Notice of withdrawal of advance notice of proposed rulemaking.

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SUMMARY: The Food Safety and Inspection Service (FSIS) is withdrawing 
an advance notice of proposed rulemaking (ANPR) entitled ``Product 
Labeling: Defining United States Cattle and United States Fresh Beef 
Products,'' which was published in the Federal Register on August 7, 
2001. In the ANPR, the Agency requested comments on the need for 
regulations to clarify the definition of ``United States cattle'' and 
``United States fresh beef products,'' and whether such products should 
bear labeling claims that are different from the claims that are 
permitted under FSIS'' current policy. Under FSIS policy, beef products 
that are made from animals that are documented to have been born, 
raised, slaughtered, and prepared in the United States are permitted to 
be labeled as USA products. The country-of-origin labeling provisions 
(Section 10816) in the Farm Security and Rural Investment Act of 2002 
(the Farm Bill) \1\ supplant the issues raised in the ANPR and, 
therefore, FSIS is withdrawing the ANPR.
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    \1\ Public Law 107-171 (May 13, 2002).

ADDRESSES: Send an original and two copies of comments to the FSIS 
Docket Clerk, Docket  00-036W, Room 102 Cotton Annex Building, 
300 12th Street, SW., Washington, DC 20250-3700. Any comments will be 
available for public inspection in the Docket Room from 8:30 a.m. to 
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4:30 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Robert C. Post, Ph.D., Director, 
Labeling and Consumer Protection Staff, FSIS, by telephone at (202) 
205-0279 or by fax at (202) 205-3625.

SUPPLEMENTARY INFORMATION:

Background

    FSIS published the ANPR (66 FR 41160) in response to the Conference 
Report accompanying the Agriculture Appropriations for 2000.\2\ The 
report directed the Secretary of Agriculture, in consultation with the 
affected industries, to promulgate regulations to define which cattle 
and fresh beef products are ``Products of the U.S.A.'' The report also 
directed the Secretary to determine the terminology that would best 
reflect in labeling that such beef products are, in fact, U.S. 
products. The report stated that clarifying regulations would 
facilitate the development of voluntary, value-added promotion programs 
that benefit U.S. producers, business, industry, consumers, and 
commerce.
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    \2\ Agricultural, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriation Act, 2000 (Public 
Law 106-78 (October 23, 1999).
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    Under the mandate of the Federal Meat Inspection Act (21 U.S.C. 601 
et seq.), FSIS issues regulations to ensure that labeling statements 
about the origin of a product are truthful, accurate, and not 
misleading. Under FSIS regulations, producers and processors wishing to 
make such labeling statements on the labels of products shipped from 
Federal establishments must submit documentation that verifies that the 
statements are truthful and accurate.
    The Department's Agriculture Marketing Service (AMS) has the 
authority to establish voluntary programs under the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1621-1627) to verify/certify the origin 
of animals, which can be reflected in labeling statements. However, 
producers wishing to make such statements are not required to have 
their production practices verified/certified by an AMS program. In 
1998, AMS proposed program guidelines to certify that livestock, meat, 
and meat products are eligible to be labeled as ``U.S. Beef'' because 
they are derived from animals that were born, raised, slaughtered, and 
prepared in the United States. There was to be a fee for this service, 
however, and no firm took advantage of it.

Provisions in the 2002 Farm Bill

    On May 13, 2002, the President signed the Farm Bill into law. The 
new law amends the Agriculture Marketing Act of 1946 to require 
retailers to inform consumers of the country-of-origin of covered 
commodities at the point of final retail sale. The term ``covered 
commodity'' is defined in the law as muscle cuts of beef (including 
veal), lamb, and pork; ground beef, lamb, and pork; wild and farm-
raised fish and shellfish; perishable agricultural commodities (fresh 
fruits and vegetables); and peanuts. The Act directs the Secretary, 
through AMS, to implement the requirements by September 30, 2004.
    On October 11, 2002, AMS published a notice in the Federal Register 
(67 FR 63367) entitled ``Establishment of Guidelines for the Interim 
Voluntary Country of Origin Labeling of Beef, Lamb, Pork, Fish, 
Perishable Agricultural Commodities, and Peanuts Under the Authority of 
the Agricultural Marketing Act of 1946.'' In accordance with the 
notice, during the interim period between the signing of the law and 
its implementation date, compliance with the guidelines is voluntary. 
One of the provisions of the Farm Bill is that a retailer of beef, 
lamb, and pork may designate the covered meat commodity as having 
originated in the United States only if it is ``exclusively born, 
raised, and slaughtered in the United States.''
    As a result of the enactment of the Farm Bill, FSIS is withdrawing 
the ANPR and will not proceed with further regulatory action pursuant 
to this rulemaking.

Summary of Comments on the ANPR

    FSIS received 1,036 comments on the 2001 ANPR from trade 
associations, consumer groups, farmers unions of various states, the 
Canadian Government, the U.S. Chamber of Commerce, and citizens/
consumers. More than 900 comments were from write-in campaigns by 
cattle producers/consumers who support the definition for labeling 
purposes as ``born, raised, slaughtered, and processed (prepared) in 
the United States.'' There was almost no support for any other labeling 
terminology, no support for a petition

[[Page 11009]]

submitted by the beef industry that suggested that cattle born outside 
the United States and finished in U.S. feedlots for at least 100 days 
be allowed to be labeled as ``Product of the U.S.A.,'' and a strong 
interest in maintaining the existing FSIS policy. According to one 
respondent, any change in the existing policy of FSIS would be costly 
and damaging to the industry, provide no real benefit for consumers, 
and undermine U.S. efforts in international negotiations.
    Many respondents opposed any change in FSIS' country-of-origin 
labeling policy simply because no change was warranted. One commenter 
said that there is no convincing evidence that there is a problem that 
needs to be addressed by additional Federal regulation. The comment 
went on to say that applying the current definition for ``USA Beef'' 
and ``Fresh American Beef'' more broadly to country-of-origin labels 
such as ``Product of the USA'' is not necessary and would be 
disruptive. It concluded that substantiation and verification of 
``born, raised, slaughtered, and prepared in the United States'' would 
be unreliable and expensive since there is no national tracking system 
for cattle in this country.
    A trade association director commented that the introduction of new 
rules for a single product category would not be helpful or acceptable. 
The comment stated that it would only add to the inconsistencies and 
confusion for industry, regulatory, and U.S. Customs Service officials. 
In addition, the commenter said such a change would set an undesirable 
precedent for further processed and other types of products.
    Although there was minimal support for a mandatory program, most 
commenters strongly believed that a labeling program should be kept 
voluntary. One commenter stated that mandatory labeling should be 
restricted to protection of consumer health and safety. Others 
cautioned that what is acceptable for a voluntary labeling program 
would be unacceptable as a mandatory program. Voluntary labeling of 
U.S. beef will be market driven in private sector retail and 
foodservice channels, said the commenter. USDA should provide 
certification and audit services for alternative U.S. labels and allow 
competitive market forces to determine the merit of various labels in 
the marketplace, the commenter concluded.
    Many of the commenters discussed the inconsistency of USDA's 
geographic labeling policies, the variety of the claims used to certify 
U.S. origin, and the differences in regulations governing domestic and 
foreign products. Some called the policy confusing but acceptable, 
because it was consistent with international practices. Others 
maintained that it was incumbent upon USDA to authorize a single, 
universal term.
    Several respondents who opposed the meat industry petition, 
referred to above, mentioned a fear of Foot and Mouth Disease and 
Bovine Spongiform Encephalopathy. One commenter said that it would be 
devastating to the U.S. livestock industry and to consumer confidence 
if an infected animal or product entered the United States and received 
a ``Made in USA'' label.
    As a result of Congress' action, FSIS is withdrawing the advance 
notice of proposed rulemaking. Comments on ``country-of-origin'' 
labeling should be submitted in response to the AMS published notice 
entitled ``Establishment of Guidelines for the Interim Voluntary 
Country of Origin Labeling of Beef, Lamb, Pork, Fish, Perishable 
Agricultural Commodities and Peanuts under the Authority of the 
Agricultural Marketing Act of 1946.''

Additional Public Notification

    Public involvement in all segments of rulemaking and policy 
development is important. Consequently, in an effort to better ensure 
that minorities, women, and persons with disabilities are aware of this 
notice and informed about the mechanism for providing their comments, 
FSIS will announce it and make copies of this Federal Register 
publication through the FSIS Constituent Update. FSIS provides a weekly 
FSIS Constituent Update, which is communicated via Listserv, a free e-
mail subscription service. In addition, the update is available online 
through the FSIS Web page located at http://www.fsis.usda.gov. The 
update is used to provide information regarding FSIS policies, 
procedures, regulations, Federal Register notices, FSIS public 
meetings, recalls, and any other types of information that could affect 
or would be of interest to our constituents and stakeholders. The 
constituent Listserv consists of industry, trade, and farm groups, 
consumer interest groups, allied health professionals, scientific 
professionals, and other individuals who have requested to be included. 
Through the Listserv and Web page, FSIS is able to provide information 
to a much broader, more diverse audience.
    For more information, contact the Congressional and Public Affairs 
Office, at (202) 720-9113. To be added to the free e-mail subscription 
service (Listserv), go to the ``Constituent Update'' page on the FSIS 
Web site at http://www.fsis.usda.gov/oa/update.htm. Click on the 
``Subscribe to the Constituent Update Listserv'' link, then fill out 
and submit the form.

    Signed in Washington, DC on March 3, 2003.
Garry L. McKee,
Administrator.
[FR Doc. 03-5363 Filed 3-6-03; 8:45 am]
BILLING CODE 3410-DM-P