[Federal Register Volume 77, Number 65 (Wednesday, April 4, 2012)]
[Notices]
[Pages 20353-20354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-8079]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
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  Federal Register / Vol. 77, No. 65 / Wednesday, April 4, 2012 / 
Notices  

[[Page 20353]]



DEPARTMENT OF AGRICULTURE

Farm Service Agency


United States Warehouse Act; Export Food Aid Commodities 
Licensing Agreement

AGENCY: Farm Service Agency, USDA.

ACTION: Notice of Licensing Agreement Fee Schedule.

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SUMMARY: This notice specifies the fee schedule for the new Export Food 
Aid Commodities (EFAC) licensing agreement offered by the Farm Service 
Agency (FSA) under the United States Warehouse Act (USWA). Agricultural 
products that may be stored under an EFAC licensing agreement include, 
but are not limited to, corn soy blend, vegetable oil, and pulses such 
as peas, beans, and lentils. USWA licensing is a voluntary program. 
Warehouse operators that apply for USWA licensing agree to be licensed, 
comply with the licensing agreement, and pay associated user fees. The 
fees announced in this notice are intended to cover the costs of 
administering the licensing program, including the costs of 
inspections.

DATES: Effective date: April 4, 2012.

FOR FURTHER INFORMATION CONTACT: Patricia Barrett, Warehouse Operations 
Program Manager; phone: (202) 720-3877, email: [email protected]. 
Persons with disabilities who require alternative means for 
communication of information for this notice (Braille, large print, 
audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 
(voice and TDD).

SUPPLEMENTARY INFORMATION: USWA (7 U.S.C. 241-256) authorizes the 
Secretary of Agriculture to license warehouse operators who store 
agricultural products and to assess warehouse operator fees. FSA 
administers this authority for USDA. The USWA licensing program is 
intended to protect depositors of agricultural products by ensuring 
that licensed warehouses meet specified requirements for sanitation, 
physical security, equipment maintenance, recordkeeping, insurance, and 
financial soundness. The licensing agreement specifies the terms and 
conditions for a warehouse operator to qualify for licensing and to 
operate the warehouse in compliance with the USWA and with federal 
regulations in 7 CFR part 735.
    The USWA requires the Secretary to assess fees to cover the cost of 
implementing the program. FSA has different types of USWA licensing 
agreements, with storage and inspection requirements and fees that are 
specific to the purpose of the license and the commodities to be 
stored.
    On March 15, 2011 (76 FR 13972-13973), FSA published a notice in 
the Federal Register proposing a licensing agreement for EFAC warehouse 
operators. The notice requested comments on the licensing requirements 
and fee structures that would be appropriate for EFAC licensing 
agreements. Three comments were received; two did not address the fee 
structure. One comment stated that there should be no fees. In response 
to this comment, FSA notes that USWA requires the assessment of fees to 
cover the cost of implementing the program.
    This notice announces the fee schedule for the EFAC licensing 
agreement. Both the fee schedule and the licensing agreement will be 
posted on the FSA Web site at http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=was-ua.
    The EFAC licensing agreement will be available to port and 
transload facility operators storing or handling EFAC. This licensing 
agreement was developed in response to concerns of export food aid 
providers; specifically, the sanitation and security of agricultural 
commodities temporarily stored and handled in preparation for export 
under various food aid programs. In many existing USWA licensed 
warehouses, commodities such as grain or rice are stored in bulk form 
and commingled. In contrast, EFAC are typically packaged products that 
are stored on an ``identity preserved'' basis, meaning that specific 
quantities must be stored and handled separately from all other 
commodities to allow for the subsequent delivery of the actual 
commodity delivered for warehouse storage. The fee structure for EFAC 
reflects that requirement. For example, USWA warehouse fees typically 
include a separate ``service license'' fee to license individuals to 
inspect and weigh commodities, but this is not an applicable fee 
category for EFAC.
    The fees provided in this notice are intended to cover the costs of 
the EFAC warehouse examination and inspection program. The warehouse 
examination and inspection program is designed to ensure the warehouse 
operator's initial qualification for licensing and continuing 
compliance with the regulations and the licensing agreement. FSA will 
conduct examinations and inspections of licensed facilities as 
specified in the EFAC licensing agreement. Inspections will be 
conducted to determine the suitability of a facility for proper storage 
and handling of EFAC. Examinations will include, but are not limited 
to, review of warehouse records, pest management and control, 
housekeeping, safety, and security of goods in the care and custody of 
the licensee. The personnel conducting the examinations will verify 
that all commodities are properly marked and recorded in the warehouse 
records, and that commodities are stored in licensed space. Facilities 
must be kept and maintained in sound physical condition.
    USWA fees vary by type of warehouse, and are based on estimates of 
FSA costs for warehouse examinations and inspections for that type of 
warehouse. The fee schedule for EFAC was developed based on the 
anticipated time needed to review license applications and amendments, 
and to conduct inspections and subsequent examinations. FSA will review 
the fee schedule periodically to ensure that fees collected will cover 
associated FSA operational costs, and may revise the schedule 
accordingly. Any changes to the fee schedule will be posted on the FSA 
Web site and announced in the Federal Register. The fee schedule will 
also be included as an attachment to the licensing agreement. The 
initial EFAC fee schedule includes the following licensing, annual, and 
inspection fees.

Licensing Fees

    Section 4(a) of the USWA states, ``The Secretary shall assess 
persons covered

[[Page 20354]]

by this Act fees to cover the costs of administering the Act.'' The 
application fee for original issuance, reissuance, or duplication of a 
license for EFAC is $100 for each license issued. A license, and the 
corresponding licensing agreement, may cover multiple locations under 
one license, subject the approval of the FSA Deputy Administrator for 
Commodity Operations (DACO).

Annual User Fees

    Annual user fees are assessed based on the cost for site visits to 
conduct warehouse examinations to determine continued compliance with 
the terms of the licensing agreement and the USWA. Annual user fees 
will be assessed independently of application fees and inspection fees. 
The annual user fee will be $1500 for 1 to 3 locations, plus $300 for 
each additional location operated under the same licensing agreement.

Inspection Fees

    Inspection fees are assessed to recover the costs of administering 
the USWA. The inspection fees are assessed for site visits to determine 
initial suitability for storage of EFAC. Fees will be assessed for each 
original examination or inspection and for amendment examinations to 
modify an existing license. The inspection fee will be $1000 for 1 to 3 
locations, plus $300 for each additional location operated under the 
same licensing agreement. Fees for additional or special examination 
services, including requested examinations or examinations due to 
adverse conditions, will be assessed at an hourly rate as determined by 
FSA.
    USWA fees for EFAC are provided in the following table:

                       United States Warehouse Act
           [Fee Schedule--Export Food Aid Commodities (EFAC)]
------------------------------------------------------------------------
 
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Licensing Fee..................................................     $100
Inspection Fee, 1 to 3 Locations...............................    1,000
    Inspection Fee, each additional location over 3............      300
Annual User Fee, 1 to 3 Locations..............................    1,500
    Annual User Fee, each additional location over 3...........      300
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    General information about FSA administration of its 
responsibilities related to the USWA is available on FSA's Web site, at 
the following link: http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=was-ua. In addition to useful 
information such as policy and procedural details, the Web site 
includes a listing of licensed warehouses.

    Signed on December 7, 2011.
Carolyn B. Cooksie,
Acting Administrator, Farm Service Agency.
[FR Doc. 2012-8079 Filed 4-3-12; 8:45 am]
BILLING CODE 3410-05-P