[Federal Register Volume 77, Number 122 (Monday, June 25, 2012)]
[Proposed Rules]
[Pages 37823-37827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-15437]


 ========================================================================
 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. 77, No. 122 / Monday, June 25, 2012 / 
Proposed Rules  

[[Page 37823]]



DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 20

RIN 0551-AA81


Export Sales Reporting Requirements

AGENCY: Office of the Secretary, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would add reporting for pork (fresh, 
chilled, and frozen box/primal cuts) and distillers dried grain (DDG) 
to the Export Sales Reporting Requirements. Under this proposed rule, 
all exporters of U.S. pork and DDG would be required to report on a 
weekly basis, information on the export sales of pork and DDG to the 
Foreign Agricultural Service (FAS).

DATES: Submit comments on or before August 24, 2012.

ADDRESSES: Address all comments concerning this proposed rule to Peter 
W. Burr, Branch Chief, Export Sales Reporting Branch, Import Policies 
and Export Reporting Division, Office of Trade Programs, Foreign 
Agricultural Service, 1400 Independence Avenue SW., Washington, DC 
20250-1021, STOP 1021; or by email at [email protected]; or by 
telephone at (202) 720-3274; or fax to (202) 720-0876.

FOR FURTHER INFORMATION CONTACT: Peter W. Burr, Branch Chief, Export 
Sales Reporting Branch, Import Policies and Export Reporting Division, 
Office of Trade Programs, Foreign Agricultural Service, 1400 
Independence Avenue SW., Washington, DC 20250-1021, STOP 1021; or by 
email at [email protected]; or by telephone on (202) 720-3274; or 
by 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). All responses to this notice will be 
summarized and included in the request for OMB approval. All comments 
also will become a matter of public record.

Background

    In 1973, Congress mandated an export sales reporting requirement to 
ensure that all parties involved in the production and export of U.S. 
grain have access to up-to-date export information. There was concern 
that large grain companies had an advantage because they had more 
information than the public on future prices and grain trade trends. 
Prior to the establishment of the export sales reporting requirements, 
it was difficult for the public to obtain information on exports until 
such commodities were actually shipped.
    Authorized under Section 602 of the Agricultural Trade Act of 1978, 
as amended (7 U.S.C. 5712), the Export Sales Reporting Requirements 
mandate that exporters of wheat and wheat flour, feed grains, oil 
seeds, cotton, pork, beef and products thereof, and other commodities 
that the Secretary of Agriculture (the Secretary) may designate to 
report each week all of their export sales, regardless of the quantity, 
to the Secretary. The Export Sales Reporting Requirements regulation at 
7 CFR 20.2 provides that the Foreign Agricultural Service (FAS), United 
States Department of Agriculture (USDA) administer the requirements and 
delegates authority to the FAS Administrator to promulgate amendments 
and revisions to the regulation. There are 39 commodities that are 
currently covered. This proposed rule would add reporting for pork 
(fresh, chilled, and frozen box/primal cuts) and DDG to the Export 
Sales Reporting Requirements.
    In recent years, USDA has received numerous requests from the U.S. 
pork and DDG industries to add those commodities to the Export Sales 
Reporting Requirements. An internal review conducted by USDA supported 
the claim made by these industries that the addition of pork and DDG to 
the Export Sales Reporting Requirements would facilitate market 
transparency and enable the U.S. commodity markets and the U.S. 
industries to conduct more accurate and timely analysis on U.S. market 
conditions. More recently the Mandatory Price Reporting Act of 2010 
(Pub. L. 111-239) mandates that pork be added to the Export Sales 
Reporting Requirements.
    Reporting under the Export Sales Reporting Requirements is 
mandatory. All exporters of U.S. commodities are required to report all 
sales, regardless of the size of the sale, of wheat (by class), wheat 
products, barley, corn, grain sorghum, oats, rye, soybeans, soybean 
cake and meal, soybean oil, flaxseed, linseed oil, cotton (by type), 
sunflowerseed oil, cottonseed, cottonseed cake and meal, cottonseed 
oil, rice (by class), cattle hides and skins (cattle, calf, and kip), 
wet blues (grain, unsplit, and split), and beef. The reporting period 
is Friday through Thursday each week.
    Exporters provide information on the quantity of the sale 
transaction, the type and class of commodity, the marketing year of 
shipment, the export amount, and the destination. They also report any 
change of previously reported information, such as cancellations and 
changes in destination. A weekly summary of the export sales activity 
is published every Thursday at 8:30 a.m. eastern time, unless a change 
of time is announced. The ``U.S. Export Sales'' report does not provide 
data on individual firms, only a compilation of activity by commodity. 
Any person (exporter) who knowingly fails to make a report could be 
fined up to $25,000, imprisoned for not more than one year, or both.
    Additional ``daily'' sales reporting is required for wheat, corn, 
grain sorghum, barley, oats, soybeans, soybean cake and meal, and 
soybean oil. Daily sales reporting is required when sales of 100,000 
metric tons (20,000 metric tons for soybean oil), or more, are made by 
a single exporter in one calendar day to one destination. In addition, 
sales totaling 200,000 metric tons (40,000 metric tons for soybean oil) 
made during the reporting week, excluding any previously reported daily 
sale, are also required to be reported under the daily sales reporting 
requirement. Daily sales are required to be reported to USDA by 3 p.m. 
eastern time no later than one day after the sale is made. Daily sales 
are summarized and released to the general public through a press 
announcement at 9:00 a.m. eastern time on the following business day 
and appear in the weekly report.
    The ``U.S. Export Sales Reports'' are available electronically on 
the

[[Page 37824]]

INTERNET through the FAS Home Page http://www.fas.usda.gov/export-sales/esrd1.html. A paper copy is also available by subscription from 
the National Technical Information Service at http://www.ntis.gov/products/usda-fas.aspx.
    Under this proposed rule, all exporters of U.S. pork and DDG would 
be required to report weekly information with respect to the export 
sales of pork and DDG to the Export Sales Reporting Branch, Office of 
Trade Programs, FAS, USDA. Required reportable information includes the 
quantity, destination, and marketing year of all pork and DDG export 
sales, changes in sales, and shipments per parameters identified in 
Appendix 1. A summary of the ``U.S. Export Sales Reports'' is published 
on FAS' Web site at http://www.fas.usda.gov/export-sales/esrd1.html, 
each Thursday at 8:30 a.m. eastern time. This change would not alter 
the current reporting schedule and would be undertaken using existing 
staff at no additional cost to the agency.
    Adding pork and DDG to the Export Sales Reporting Requirements 
would provide an early indicator of export sales levels for these 
products thus improving market transparency and enabling commodity 
markets to better adjust to changing export activity. This proposed 
rule would allow for information on the total volume of sales and 
shipments to be available within two weeks of the export sale and 
shipment, rather than the nearly two-month delay experienced under the 
current system operated by the U.S. Bureau of the Census, which only 
reports actual exports.
    With the pork and DDG export markets continuing to grow, the need 
for market transparency is becoming increasingly important. The current 
two-month lag in export data as available from the U.S. Bureau of the 
Census provides a window of opportunity for foreign buyers to buy 
quantities of U.S. product at prices that may be lower than if current 
market conditions were known. Export Sales Reporting data is released 
the week after the export sale takes place, thus providing a timelier 
indicator of current market conditions.

Executive Order 12866

    The proposed rule has been determined to be significant under 
Executive Order 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.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with state and local officials. The 
objectives of the Executive Order are to foster an intergovernmental 
partnership and a strengthened federalism, by relying on state and 
local processes for state and local government coordination and review 
of proposed federal financial assistance and direct federal 
development. This rule neither provides federal financial assistance 
nor direct federal development; it does not provide either grants or 
cooperative agreements. Therefore this program is not subject to 
Executive Order 12372.

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.

Executive Order 13132

    The policies contained in this rule would not have any substantial 
direct effect on states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government. Nor would this 
rule impose substantial direct compliance costs on state and local 
governments. Therefore, consultation with the states is not required.

Executive Order 13175

    This rule has been reviewed for compliance with Executive Order 
13175, ``Consultation and Coordination with Indian Tribal 
Governments.'' This Executive Order imposes requirements on the 
development of regulatory policies that have Tribal implications or 
preempt tribal laws. The policies contained in this rule do not preempt 
Tribal law.

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 requirements 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.

Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Secretary of Agriculture is requesting comments from 
all interested individuals and organizations on a proposed revision to 
the currently approved information collection for this program. This 
revision includes the proposed change in information collection 
activities related to the regulatory changes in this proposed rule.

DATES: Comments on this notice must be received by August 24, 2012 to 
be assured of consideration.
    Additional Information or Comments: Peter W. Burr, Office of Trade 
Programs/Import Policies and Export Reporting Division/Export Sales 
Reporting Branch, FAS, USDA, 1400 Independence Avenue, Stop 1025, SW., 
Washington, DC 20520-1025; or by email at: [email protected]; or to the 
Desk Officer for Agriculture, Office of Information and Regulatory 
Affairs, Office of Management and Budget, Washington, DC 20503.

SUPPLEMENTARY INFORMATION: 
    Title: Export Sales (Reporting Program) of U.S. Agricultural 
Commodities.
    OMB Number: 0551-0007.
    Expiration Date of Approval: January 31, 2014.

[[Page 37825]]

    Type of Request: Revision of a currently approved information 
collection.
    Abstract: Section 602 of the Agricultural Trade Act of 1978, as 
amended, (7 U.S.C. 5712) requires the reporting of information 
pertaining to contracts for export sale of certain specified 
agricultural commodities and other commodities that may be designated 
by the Secretary. The Secretary of Agriculture has the authority to add 
other commodities to this list. This proposed rule would add reporting 
for pork and DDG to the Export Sales Reporting Requirements. 
Regulations at 7 CFR part 20 implement the reporting requirements, and 
prescribe a system for reporting information pertaining to contracts 
for export sales.
    USDA's Export Sales Reporting System was created after the large 
unexpected purchase of U.S. wheat and corn by the Soviet Union in 1972. 
To make sure that all parties involved in the production and export of 
U.S. grain have access to up-to-date export information, the U.S. 
Congress mandated an export sales reporting requirement in 1973. Prior 
to the establishment of the Export Sales Reporting System, it was 
difficult for the public to obtain information on export sales activity 
until the actual shipments had taken place.
    Estimate of Burden: The average burden, including the time for 
reviewing instructions, gathering data needed, completing forms, and 
record keeping is estimated to be 30 minutes.
    Respondents: All exporters of wheat and wheat flour, feed grains, 
oilseeds, cotton, rice, cattle hides and skins, beef, pork, and any 
products thereof, and other commodities that the Secretary may 
designate as produced in the United States.
    Estimated number of respondents: 360.
    Estimated Number of Responses per Respondent: 252.37.
    Estimated Total Annual Burden on Respondents: 45,427.
    Requests for Comments: Send comments regarding (a) whether the 
proposed collection of information is necessary for the proper 
performance of the functions of the agency, including whether the 
information will have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the proposed collection of 
information; (c) ways to enhance the quality, utility and clarity of 
the information to be collected; and (d) ways to minimize the burden of 
the collection of information on those who are to respond, including 
through the use of automated, electronic, mechanical, or other 
technological collection techniques or other forms of information 
technology.

E-Government Act Compliance

    FAS is committed to compliance with the E-Government 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.

Title 7--Agriculture

List of Subjects in 7 CFR Part 20

    Agricultural commodities, Exports, Reporting and recordkeeping 
requirements.

    Accordingly, for the reasons set forth in the preamble, 7 CFR Part 
20 is proposed to be amended as follows:

PART 20--EXPORT SALES REPORTING REQUIREMENTS

    1. The authority citation for part 20 would continue to read as 
follows:

    Authority: 7 U.S.C. 5712.

    2. Section 20.4 is amended by revising paragraph (c) to read as 
follows:


Sec.  20.4  Definitions.

* * * * *
    (c) Commodity. Wheat and wheat flour, feed grains, oilseeds, 
cotton, rice, cattle hides and skins, beef, pork, and any products 
thereof, and any other agricultural commodity the Secretary may 
designate. ``Commodity'' shall also mean a commodity having identifying 
characteristics as described in any announcement issued pursuant to 
Sec.  20.5 such as class(es) of wheat and rice, or staple length(s) of 
cotton. Mixed wheat shall be considered to be the predominant wheat 
class of the blend. This definition excludes commodities to be used for 
seed which have been treated in such a manner that their use is limited 
to seed for planting purposes or on which a certificate has been issued 
by a recognized seed testing laboratory setting forth variety, 
germination and purity.
* * * * *
    3. Appendix 1 to Part 20 is revised to read as follows:

Appendix 1 to Part 20--Commodities Subject to Reporting, Units of Measure To Be Used in Reporting, and Beginning
                                       and Ending Dates of Marketing Years
----------------------------------------------------------------------------------------------------------------
                                        Unit of measure to be    Beginning of marketing
       Commodity to be reported           used in reporting               year            End of marketing year
----------------------------------------------------------------------------------------------------------------
Wheat--Hard red winter...............  Metric Tons............  June 1.................  May 31.
Wheat--Soft red winter...............  Metric Tons............  June 1.................  May 31.
Wheat--Hard red spring...............  Metric Tons............  June 1.................  May 31.
Wheat--White (incl. Hard and soft      Metric Tons............  June 1.................  May 31.
 white).
Wheat--Durum.........................  Metric Tons............  June 1.................  May 31.
Wheat--Products--All wheat flours      Metric Tons............  June 1.................  May 31.
 (including clears) bulgur, semolina,
 farina, and rolled, cracked and
 crushed wheat.
Barley--Unmilled (including feed and   Metric Tons............  June 1.................  May 31.
 hull-less waxy barley).
Corn--Unmilled (including waxy,        Metric Tons............  Sept. 1................  Aug. 31.
 cracked--if 50% whole kernels).
Distillers Dried Grain...............  Metric Tons............  Sept. 1................  Aug. 31.
Rye--Unmilled........................  Metric Tons............  June 1.................  May 31.
Oats--Unmilled.......................  Metric Tons............  June 1.................  May 31.
Grain Sorghum--Unmilled..............  Metric Tons............  Sept. 1................  Aug. 31.
Soybeans.............................  Metric Tons............  Sept. 1................  Aug. 31.
Soybean Cake and Meal................  Metric Tons............  Oct. 1.................  Sept. 30.

[[Page 37826]]

 
Soybean Oil--including: crude          Metric Tons............  Oct. 1.................  Sept. 30.
 (including degummed), once refined,
 soybean salad oil (including refined
 and further processed by bleaching,
 deodorizing or winterizing),
 hydrogenated, packaged oil.
Flaxseed.............................  Metric Tons............  June 1.................  May 31.
Linseed Oil--including raw, boiled...  Metric Tons............  June 1.................  May 31.
Cottonseed...........................  Metric Tons............  Aug. 1.................  July 31.
Cottonseed Cake and Meal.............  Metric Tons............  Oct. 1.................  Sept. 30.
Cottonseed Oil--including crude, once  Metric Tons............  Oct. 1.................  Sept. 30.
 refined, cottonseed salad oil
 (refined and further processed by
 bleaching, deodorizing or
 winterizing), hydrogenated.
Sunflowerseed Oil crude, once          Metric Tons............  Oct. 1.................  Sept. 30.
 refined, sunflowerseed salad oil
 (refined and further processed by
 bleaching, deodorizing or
 winterizing), hydrogenated.
Cotton--American Pima--Raw, extra      Running Bales..........  Aug. 1.................  July 31.
 long staple.
Cotton--Upland--Raw, staple length     Running Bales..........  Aug. 1.................  July 31.
 1\1/16\ inches and over.
Cotton--Upland--Raw, staple length 1   Running Bales..........  Aug. 1.................  July 31.
 inch up to 1\1/16\ inches.
Cotton--Upland--Raw, staple length     Running Bales..........  Aug. 1.................  July 31.
 under 1 inch.
Rice--Long grain, rough (including     Metric Tons............  Aug. 1.................  July 31.
 parboiled).
Rice--Medium, short and other          Metric Tons............  Aug. 1.................  July 31.
 classes, rough (including parboiled).
Rice--Long grain, brown (including     Metric Tons............  Aug. 1.................  July 31.
 parboiled).
Rice--Medium, short and other          Metric Tons............  Aug. 1.................  July 31.
 classes, brown (including parboiled).
Rice--Long grain, milled (including    Metric Tons............  Aug. 1.................  July 31.
 parboiled).
Rice--Medium, short and other          Metric Tons............  Aug. 1.................  July 31.
 classes, milled (including
 parboiled, brewer's rice).
Cattle Hides and Skins--Whole cattle   Pieces.................  Jan. 1.................  Dec. 31.
 hides (excluding wet blues).
Cattle Hides and Skins--Whole calf     Pieces.................  Jan. 1.................  Dec. 31.
 skins (excluding wet blues).
Cattle Hides and Skins--Whole kip      Pieces.................  Jan. 1.................  Dec. 31.
 skins (excluding wet blues).
Cattle Hides and Skins--Cattle, calf,  Number.................  Jan. 1.................  Dec. 31.
 and kip cut into croupons, crops,
 dossets, sides, butts and butt bend
 (hide equivalent) (excluding wet
 blues).
Cattle Hides and Skins--Cattle, calf   Pounds.................  Jan. 1.................  Dec. 31.
 and kip, in cuts not otherwise
 specified; pickled/limed (excluding
 wet blues).
Cattle, calf and kip, Wet blues--      Number.................  Jan. 1.................  Dec. 31.
 unsplit (whole or sided) hide
 equivalent.
Cattle, calf and kip, Wet blues--      Number.................  Jan. 1.................  Dec. 31.
 grain splits (whole or sided) hide
 equivalent.
Cattle, calf and kip, Wet blues--      Pounds.................  Jan. 1.................  Dec. 31.
 splits (excluding grain splits).
Beef--fresh, chilled or frozen muscle  Metric tons............  Jan. 1.................  Dec. 31.
 cuts/whether or not boxed.
Pork--fresh, chilled or frozen muscle  Metric tons............  Jan. 1.................  Dec. 31.
 cuts/whether or not boxed.
----------------------------------------------------------------------------------------------------------------



[[Page 37827]]

    Dated: June 14, 2012.
Suzanne Heinen,
Administrator, Foreign Agricultural Service.
[FR Doc. 2012-15437 Filed 6-22-12; 8:45 am]
BILLING CODE 3410-10-P