[Federal Register Volume 75, Number 235 (Wednesday, December 8, 2010)]
[Rules and Regulations]
[Pages 76253-76254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30714]



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 Rules and Regulations
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  Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / 
Rules and Regulations  

[[Page 76253]]



DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 6

RIN 0551-AA70


Dairy Import Licensing Program

AGENCY: Office of the Secretary, USDA.

ACTION: Final rule.

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

SUMMARY: This final rule amends the historical license reduction 
provisions of the Dairy Tariff-Rate Import Quota Licensing Program 7 
CFR part 6, by suspending the provisions with respect to the reduction 
of historical licenses based on surrenders of unused quantities until 
2016.

DATES: Effective Date: January 1, 2011.

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

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The final 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 final rule will not have a significant economic impact on small 
businesses participating in the program.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988. The 
provisions of this final 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 final rule would not have a retroactive effect. 
Before any judicial action may be brought forward regarding this final 
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 final 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 final 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 final 
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

    FAS administers the Dairy Tariff-Rate Import Quota Licensing 
Program, 7 CFR 6.20-6.37, that provides for the issuance of licenses to 
import certain dairy articles under tariff-rate quotas (TRQ), as 
established in the Harmonized Tariff Schedule of the United States. 
These dairy products may only be imported into the United States at the 
in-quota rate, by or for the account of a person or firm to whom such 
licenses have been issued, and only in accordance with the terms and 
conditions of the program. Section 6.25(b)(1)(i) provides that if a 
licensee surrenders more than 50 percent of a historical license at 
least 3 out of the 5 prior years, that license will be permanently 
reduced to the average amount entered during those 5 years. Any amounts 
permanently reduced are transferred to the non-historical quota, which 
is allocated by a lottery. In 2008, the Secretary amended the 
regulation, suspending section 6.25(b)(1)(i) for 2 years until January 
1, 2011. Subsequent market developments have caused the Department to 
again re-consider the license reduction provisions of the Dairy Import 
Licensing Program.
    Summary of public comments: The Secretary published a proposed rule 
in the Federal Register (75 FR 62692-23), October 13, 2010, providing 
that the provisions of 7 CFR 6.25, with respect to the reduction of 
historical licenses, based on unused amounts would be suspended for an 
additional 5 years until 2016. The Department requested that public 
comments be submitted by November 12, 2010. Comments were submitted by 
29 importing companies, 3 associations, a counsel to the Cheese 
Importers Association of America and several of its member companies, a 
customs broker, a manufacturer of dairy products, and a Congressman all 
in favor of the proposed 5-year suspension of the dairy import license 
reduction provision.
    The factors cited in favor of a further 5-year suspension included 
the declining availability of cheese from the European Union (EU), a 
weaker U.S. dollar, and the general economic weakness in the United 
States. Some companies with historical licenses stated that the U.S. 
food market benefits from reliable and longer-term supply-chain 
relationships which may be more easily maintained by companies which 
have historical licenses.
    Many of the companies emphasized that a 5-year suspension of the 
historical license reduction provision would allow additional time for 
license holders to adjust to economy-wide factors outside their 
control, including changes in the

[[Page 76254]]

EU's supply and demand situation for dairy products, as well as to 
changes in the U.S. market.
    Conclusion: The quota-fill rates for Swiss, Gruyere, and low-fat 
type cheeses have continued to remain low even after transfer to the 
lottery system in recent years. Market conditions are always subject to 
fluctuation and change, and it is incumbent upon all license holders to 
adjust to these changing conditions. To allow additional time to adjust 
to changes in EU supply and demand, due to its long-term dairy policy 
changes, the Department will again temporarily suspend the historical 
license reduction provisions for a period of 5 years, commencing 
January 1, 2011. Historical license reductions will again be 
implemented beginning 2016, as set forth in the proposed rule. In 2016, 
historical license reductions will be based on import data from years 
2011 through 2015.

List of Subjects in 7 CFR Part 6

    Agricultural commodities, Cheese, Dairy products, and Imports.


0
For the reasons set out in the preamble, 7 CFR part 6 is amended as 
follows:

PART 6--IMPORT QUOTAS AND FEES

Subpart--Dairy Tariff-Rate Import Quota Licensing

0
1. The authority citation for 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).


0
2. Section 6.25 (b) 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 2016 quota year, a person who has 
surrendered more than 50 percent of such historical license in at least 
three of the prior 5 quota years will thereafter be issued a license in 
an amount equal to the average annual quantity entered during those 5 
quota years.
    (ii) [Reserved]
* * * * *

    Issued at Washington, DC, the 30th day of November 2010.
Robert Riemenschneider,
Acting Administrator, Foreign Agricultural Service.
[FR Doc. 2010-30714 Filed 12-7-10; 8:45 am]
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