[Federal Register Volume 72, Number 118 (Wednesday, June 20, 2007)]
[Proposed Rules]
[Pages 33917-33918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-3029]


 ========================================================================
 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. 72, No. 118 / Wednesday, June 20, 2007 / 
Proposed Rules  

[[Page 33917]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 60

[Docket No. AMS-LS-06-0081; LS-04-04]
RIN 0581-AC26


Mandatory Country of Origin Labeling of Beef, Lamb, Pork, 
Perishable Agricultural Commodities, and Peanuts

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed Rule; reopening of comment period.

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SUMMARY: The Agricultural Marketing Service (AMS) is reopening the 
comment period for 60 days for the proposed rule for mandatory country 
of origin labeling (COOL) for beef, lamb, pork, perishable agricultural 
commodities, and peanuts that was published in the Federal Register on 
October 30, 2003 (68 FR 61944). AMS requests general comments on the 
proposed rule taking into account that the Agency has changed 
corresponding definitions and requirements in the interim final rule 
for fish and shellfish published in the Federal Register on October 5, 
2004 (69 FR 59708). When preparing comments on the proposed rule, AMS 
asks that interested parties consider the provisions of the interim 
final rule for fish and shellfish and whether the definitions and 
requirements in the interim final rule can also be applied to beef, 
lamb, pork, perishable agricultural commodities, and peanuts. The 
interim final rule's definitions and requirements include, but are not 
limited to: Processed food item definition, country of origin 
notification, markings, and recordkeeping requirements. All affected 
persons are hereby given notice of the opportunity to submit written 
data and views concerning the proposed rule. AMS will review and 
consider the submitted comments and information as it promulgates a 
final regulatory action for mandatory COOL for beef, lamb, pork, 
perishable agricultural commodities and peanut covered commodities. AMS 
is simultaneously reopening the comment period for the interim final 
rule for the mandatory COOL program for fish and shellfish covered 
commodities.

DATES: Comments must be submitted on or before August 20, 2007, to be 
assured of consideration.

ADDRESSES: Comments should be submitted through the Internet at http://www.regulations.gov. Send written comments to: Country of Origin 
Labeling Program, Room 2607-S; Agricultural Marketing Service (AMS), 
USDA; 1400 Independence Avenue, SW., Washington, DC 20250-0254, or by 
facsimile to (202) 720-1112. Comments received will be posted on the 
Web site http://www.regulations.gov. Comments sent to the above 
location that specifically pertain to the information collection and 
recordkeeping requirements should also be sent to the Desk Officer for 
Agriculture, Office of Information and Regulatory Affairs, Office of 
Management and Budget (OMB), New Executive Office Building, 725 17th 
Street, NW., Room 725, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Martin O'Connor, Chief; Standards, 
Analysis, and Technology Branch; Livestock and Seed Program, AMS, USDA, 
by telephone on (202) 720-4486, or via e-mail to: [email protected]. 
Information can also be found at http://www.ams.usda.gov/cool/.

SUPPLEMENTARY INFORMATION: The Farm Security and Rural Investment Act 
of 2002 (Farm Bill) (7 U.S.C. 7901) and the 2002 Supplemental 
Appropriations Act (Appropriations Act) (Pub. L. 107-206) amended the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) by adding 7 
U.S.C. 1638-1638d to direct the Secretary of Agriculture to promulgate 
regulations by September 30, 2004, requiring retailers to notify their 
customers of the country of origin of covered commodities. On October 
30, 2003, AMS published a proposed rule for mandatory COOL for all 
covered commodities--beef, lamb, pork, fish, perishable agricultural 
commodities, and peanuts (68 FR 61944). The proposed rule can be found 
at: http://www.ams.usda.gov/cool/index.htm. Subsequently, the FY 2004 
Consolidated Appropriations Act (Pub. L. 108-199) delayed the 
applicability of mandatory COOL for all covered commodities except wild 
and farm-raised fish and shellfish until September 30, 2006. The 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act of 2006 (Pub. L. 109-97) further 
delayed the applicability of mandatory COOL for all covered commodities 
except wild and farm-raised fish and shellfish until September 30, 
2008. On October 5, 2004, AMS published an interim final rule (69 FR 
59708) for the mandatory COOL program for fish and shellfish. The 
interim final rule can be found at: http://www.ams.usda.gov/cool/index.htm. The interim final rule became effective on April 4, 2005.
    AMS reopened the interim final rule's comment period for 90 days on 
November 27, 2006 (71 FR 68431). The reopened comment period was 
limited to comments concerning the economic impacts of the interim 
final rule, including implementation costs, maintenance, the burden of 
the information collection and recordkeeping requirements, benefits, 
and net economic impacts. Further, comments and information received as 
a result of the reopened interim final rule's comment period, to the 
extent relevant, would be reviewed in connection with any final 
regulatory action for any of the covered commodities.
    In preparation for promulgating a final regulatory action, AMS 
seeks comment on all aspects of the proposed rule for mandatory COOL 
for beef, lamb, pork, perishable agricultural commodities, and peanuts 
as well as specific comments, data, and other relevant information on 
whether the definitions and requirements contained in the interim final 
rule for fish and shellfish can be applied to a mandatory COOL program 
for beef, lamb, pork, perishable agricultural commodities and peanuts. 
Additionally, interested parties are requested to provide comments and 
perspective related to the information that is to be provided from a 
mandatory COOL program and the expected costs and benefits of such a 
program. While AMS welcomes all comments on a mandatory COOL program 
for the applicable covered commodities, comments addressing the 
following definitions and requirements are of special interest:

[[Page 33918]]

Processed Food Item

    In an effort to make the definition of a processed food item 
clearer in the interim final rule, AMS modified the language in the 
proposed rule for fish and shellfish to provide specific examples of 
the types of processing that that would result in a product being 
considered a processed food item. Under the interim final rule, all 
cooked items (e.g., canned fish, cooked shrimp) and breaded products 
are considered processed food items and are excluded from coverage. In 
addition, retail items have given a distinct flavor (e.g., Cajun 
marinated catfish) are also considered processed food items. Should the 
Agency provide specific examples of the types of processing that would 
result in beef, lamb, pork, perishable agricultural commodity and 
peanut covered commodities being considered processed food items and 
excluded from coverage? Are there significant differences in the 
preparation of beef, lamb, pork, perishable agricultural commodities 
and peanuts for retail sale, compared to fish and shellfish, which the 
Agency should consider? Are the major components of the definition of a 
processed food item set forth in the interim final rule for fish and 
shellfish (i.e., change in character and/or combined with other 
substantive components) also applicable to beef, lamb, pork, perishable 
agricultural commodities and peanuts?

Country of Origin Notification

    Under Sec.  60.200 of the interim final rule for fish and 
shellfish, the requirements and procedures for labeling a covered 
commodity for country of origin are established. The interim final rule 
modified provision of the proposed rule by changing the labeling and 
notification requirements to simplify the labels and remain compliant 
and consistent with other existing Federal regulatory requirements. The 
interim final rule changed the requirements for the labeling of 
imported fish and shellfish covered commodities not substantially 
transformed in the United States, imported fish and shellfish covered 
commodities substantially transformed in the United States, and blended 
products (i.e., commingling of the same covered commodity). AMS seeks 
comments on the applicability of these requirements and procedures to 
beef, lamb, pork, perishable agricultural commodity and peanut covered 
commodities. Can the requirements contained in the interim final rule 
for fish and shellfish for determining the origin of imported products 
and products partially produced in a foreign country and imported into 
and further processed in the United States be used in whole or part? 
What would be the impact of applying the same or similar requirements 
for beef, lamb, pork, perishable agricultural commodity and peanut 
covered commodities?

Markings

    Under Sec.  60.300 of the interim final rule for fish and shellfish 
the types of markings permissible to label covered commodities are 
defined. AMS seeks comment on the established requirements for markings 
for all covered commodities which includes the type of labels allowed, 
placement, font, design, signs, location, and allowable abbreviations.

Recordkeeping Requirements

    The recordkeeping requirements for retailers and suppliers are 
established under Sec.  60.400 of the interim final rule for fish and 
shellfish. The interim final rule for fish and shellfish modified 
provisions of the proposed rule for fish and shellfish by significantly 
changing the record retention requirements of retailers and their 
suppliers. For example, the retention of records for a specific 
transaction was reduced from 2 years to 1 year for both retailers and 
suppliers for certain records. Additionally, records required to verify 
country of origin and method of production for fish and shellfish 
covered commodities at the retail site were reduced from 7 days 
following retail sale of the product to the timeframe the product is 
for sale. AMS seeks comment on the impact of applying the recordkeeping 
requirements of the interim final rule for this proposed rule for beef, 
lamb, pork, perishable agricultural commodity and peanut covered 
commodities. Of particular interest are comments on internal 
recordkeeping systems that beef, lamb, pork, perishable agricultural 
commodity and peanut covered commodity suppliers may use to comply with 
requirements for providing accurate country of origin information to 
retailers. Are the retention periods established for records to 
substantiate claims in the interim final rule for fish and shellfish 
reasonable for this proposed rule given the nature of the covered 
commodities? How will the recordkeeping requirements set forth in the 
interim final rule for fish and shellfish impact the initial and 
intermediary suppliers of beef, lamb, pork, perishable agricultural 
commodity and peanut covered commodities in the supply chain?

Timeframes for Products Produced Prior to the Implementation Date To 
Clear the Channels of Commerce

    In the interim final rule, fish and shellfish covered commodities 
derived from fish and shellfish caught or harvested before December 6, 
2004, were exempt from the mandatory COOL program. This provision was 
provided to allow products without source verification information 
produced prior to the implementation date (i.e., April 4, 2005) to 
clear the channels of commerce. Since harvest is a key component of 
determining origin, this provision allowed suppliers time to develop 
the necessary verification and recordkeeping systems to comply with the 
mandatory COOL program. That being said, should specific timeframes for 
exempting beef, lamb, pork, perishable agricultural commodity and 
peanut covered commodities without verifiable records produced prior to 
an implementation date be established in this proposed rule? If so, 
what should be the specific timeframe for each covered commodity?

    Authority: 7 U.S.C. 1621 et seq.

    Dated: June 14, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 07-3029 Filed 6-15-07; 8:53 am]
BILLING CODE 3410-02-M