[Federal Register Volume 75, Number 197 (Wednesday, October 13, 2010)]
[Proposed Rules]
[Pages 62692-62693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-25651]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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.
 
 ========================================================================
 

  Federal Register / Vol. 75, No. 197 / Wednesday, October 13, 2010 / 
Proposed Rules  

[[Page 62692]]



DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 6

RIN 0551-AA65


Dairy Import Licensing Program

AGENCY: Office of the Secretary, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would suspend the historical license 
reduction provisions of the Dairy Import Licensing Program, 7 CFR part 
6, for a period of 5 years. This temporary suspension is intended to 
improve program administration and reflect ongoing changes in the 
markets for cheese and other dairy products subject to import licensing 
requirements.

DATES: Submit comments on or before November 12, 2010.

ADDRESSES: Address all comments concerning this proposed rule to Ron 
Lord, Branch Chief, Sugar and Dairy Branch, Import and Trade Support 
Programs Division, Foreign Agricultural Service, 1400 Independence 
Avenue, SW., Stop 1021, Washington, DC 20250-1021; e-mail 
[email protected]; telephone (202) 720-6939; or fax (202) 720-
0876. Persons with disabilities who require an alternative means for 
communication of information (Braille, large print, audiotape, etc.) 
should contact USDA's Target Center at (202) 720-2600 (voice and TDD).

FOR FURTHER INFORMATION CONTACT: Ron Lord, Branch Chief, Sugar and 
Dairy Branch, Import and Trade Support Programs Division, Foreign 
Agricultural Service, 1400 Independence Avenue, SW., Stop 1021, 
Washington, DC 20250-1021; e-mail [email protected]; telephone 
(202) 720-6939; or fax (202) 720-0876.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The proposed rule has been determined to be not significant under 
E.O. 12866 and has been reviewed by the Office of Management and 
Budget.

Regulatory Flexibility Act

    The Regulatory Flexibility Act ensures that regulatory and 
information requirements are tailored to the size and nature of small 
businesses, small organizations, and small governmental jurisdictions. 
This proposed rule will not have a significant economic impact on small 
businesses participating in the program.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988. 
The provisions of this proposed rule would not have a preemptive effect 
with respect to any State or local laws, regulations, or policies which 
conflict with such provision or which otherwise impede their full 
implementation. The proposed rule would not have a retroactive effect. 
Before any judicial action may be brought forward regarding this 
proposed rule, all administrative remedies must be exhausted.

National Environmental Policy Act

    The Administrator has determined that this action will not have a 
significant effect on the quality of the human environment. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is necessary for this proposed rule.

Unfunded Mandates Reform Act (Pub. L. 104-4)

    Public Law 104-4 requires consultation with state and local 
officials and Indian tribal governments. This proposed rule does not 
impose an unfunded mandate or any other requirement on state, local, or 
tribal governments. Accordingly, these programs are not subject to the 
provisions of the Unfunded Mandates Reform Act.

Executive Order 12630

    This Order requires careful evaluation of governmental actions that 
interfere with constitutionally protected property rights. This 
proposed rule would not interfere with any property rights and, 
therefore, does not need to be evaluated on the basis of the criteria 
outlined in Executive Order 12630.

Government Paperwork Elimination Act

    Foreign Agricultural Service (FAS) is committed to compliance with 
the Government Paperwork Elimination Act, which requires Government 
agencies, in general, to provide the public the option of submitting 
information or transacting business electronically to the maximum 
extent possible.

Background

    The proposed rule at 7 CFR part 6 would revise the Dairy Tariff-
Rate Import Quota Licensing regulation by suspending, for a period of 5 
years, the provisions with respect to the reduction of historical 
licenses based on surrenders of unused amounts. Import licensing is one 
of the tools the U.S. Department of Agriculture (USDA) uses to 
administer the tariff-rate quota (TRQ) system for U.S. imports of dairy 
products. TRQs replaced strictly quantitative import quotas for dairy 
products on January 1, 1995, as a result of the Uruguay Round Agreement 
on Agriculture and the Uruguay Round Agreements Act. Under these TRQs, 
a low-tariff rate, called the in-quota rate, applies to imports up to a 
specified quantity. A higher tariff rate, called the over-quota rate, 
applies to any imports in excess of that amount. TRQ rates and 
quantities vary by product.
    For dairy products subject to TRQs, a license issued by the FAS is 
generally required to import products at the in-quota rate. No license 
is required to import products at the over-quota rate.
    Under the historical license reductions provisions, the amount of 
the license issued by FAS is reduced if the importer surrenders more 
than 50 percent of the license at least 3 out of 5 consecutive years. 
Section 6.25(b)(1)(i) provides that beginning with the quota year 2011, 
if a licensee surrenders more than 50 percent of a historical license 
in at least 3 out of the 5 prior years, that license will be 
permanently reduced to the average amount entered during those 5 years. 
These provisions are intended to provide a strong incentive for 
companies with historical licenses to utilize their licenses.
    In 2008, the regulations were revised to suspend these provisions 
for the 2009 and 2010 quota years, thereby delaying their 
implementation until 2011. The following background statement was

[[Page 62693]]

included: ``Market conditions are always subject to fluctuation and 
change, and it is incumbent upon all license holders to adjust to these 
changing conditions. Nonetheless, to allow additional time to adjust to 
changes in EU's supply and demand, due to its long-term dairy policy 
changes, the Department will temporarily suspend the historical license 
reduction provisions for a period of 2 years, commencing in 2009. 
Historical license reductions will again be implemented beginning 2011, 
rather than in 2012 or 2014, as in the proposed rule.''
    As the circumstances that prompted the previous suspension 
continue, an additional temporary suspension is proposed to improve 
program administration and reflect ongoing changes in the markets for 
cheese and other dairy products subject to import licensing 
requirements. The historical licenses provide for orderly importation 
of a wide variety of cheeses and permit companies to invest in market 
development with some assurance of future ability to provide specific 
types of cheese.

List of Subjects in 7 CFR Part 6

    Agricultural commodities, cheese, dairy products, imports, 
Reporting and recordkeeping requirements.
    For the reasons described in the preamble, 7 CFR part 6 is proposed 
to be amended as follows:

PART 6--IMPORT QUOTAS AND FEES

Subpart--Dairy Tariff--Rate Import Quota Licensing

    1. The authority citation of part 6 subpart--Dairy Tariff--Rate 
Import Quota Licensing, continues to read as follows:

    Authority: Additional U.S. Notes 6, 7, 8, 12, 14, 16-23 and 25 
to Chapter 4 and General Note 15 of the Harmonized Tariff Schedule 
of the United States (19 U.S.C. 1202), Pub. L. 97-258, 96 Stat. 
1051, as amended (31 U.S.C. 9701), and secs. 103 and 404, Pub. L. 
103-465, 108 Stat. 4819 (19 U.S.C. 3513 and 3601).

    2. Section 6.25 (b)(1) is revised to read as follows:


Sec.  6.25  Allocation of licenses.

* * * * *
    (b) Historical licenses for the 2011 and subsequent quota years 
(Appendix 1). (1) A person issued a historical license for the 2010 
quota year will be issued a historical license in the same amount for 
the same article from the same country for the 2011 quota year and for 
each subsequent quota year except that:
    (i) Beginning with the quota year 2016, a person who has 
surrendered more than 50 percent of such historical license in at least 
three of the prior five quota years will thereafter be issued a license 
in an amount equal to the average annual quantity entered during those 
five quota years.
    (ii) [Reserved]
* * * * *

    Dated: October 5, 2010.
Suzanne Hale,
Administrator, Foreign Agricultural Service.
[FR Doc. 2010-25651 Filed 10-12-10; 8:45 am]
BILLING CODE 3410-10-P