[Federal Register Volume 81, Number 245 (Wednesday, December 21, 2016)]
[Rules and Regulations]
[Pages 93571-93572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30570]



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 Rules and Regulations
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  Federal Register / Vol. 81, No. 245 / Wednesday, December 21, 2016 / 
Rules and Regulations  

[[Page 93571]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 51 and 52

[Doc. No. AMS-SC-16-0063]


Revisions to Inspection Application Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This rule amends the inspection, certification and standards 
requirements for fresh fruits, vegetables and other products and 
processed fruits and vegetables, processed products and certain other 
processed food products (7 CFR parts 51 and 52) by adding an option to 
allow for electronic submissions of inspection applications. This rule 
also eliminates outdated terminology referencing submission of 
inspection applications by telegraph.

DATES: Effective December 22, 2016; comments received by February 21, 
2017 will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit comments via the 
Internet at http://www.regulations.gov. Comments submitted by mail or 
courier must be sent in duplicate to Francisco Grazette, United States 
Department of Agriculture (USDA), Agricultural Marketing Service (AMS), 
Specialty Crops Program (SCP), Specialty Crops Inspection (SCI) 
Division, 1400 Independence Avenue SW., Room 1536, Stop 0240, 
Washington, DC 20250, FAX (202) 720-0393. All comments should reference 
the document number, and the date and page number of this issue of the 
Federal Register. All comments received will be posted without change, 
including any personal information provided, online at http://www.regulations.gov and will be made available for public inspection at 
the above physical address during regular business hours.

FOR FURTHER INFORMATION CONTACT: Francisco Grazette, USDA, AMS, SCP, 
SCI Division, 1400 Independence Avenue SW., Room 1536, Stop 0240, 
Washington, DC 20250-0250; telephone: (202) 720-5870; fax: (202) 720-
0393; email: [email protected].

SUPPLEMENTARY INFORMATION: Section 203(c) (7 U.S.C. 1622(c)) of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627) (Act of 1946), 
as amended, directs and authorizes the Secretary of Agriculture to 
develop and improve standards of quality, condition, quantity, grade, 
and packaging, and recommend and demonstrate such standards in order to 
encourage uniformity and consistency in commercial practices.
    Parts 51 and 52 of title 7 of the Code of Federal Regulations 
specify the inspection, certification and standard requirements for 
fresh and processed fruit, vegetable and specialty crops to ensure 
uniformity and consistency.
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This interim rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have retroactive 
effect and does not preempt any state or local law, regulation, or 
policy unless it presents an irreconcilable conflict with this rule. 
There are no administrative procedures which must be exhausted prior to 
any judicial challenge to the provisions of this rule.
    This rule amends the inspection, certification and standards 
requirements for fresh fruits, vegetables and other products and 
processed fruits and vegetables, processed products and certain other 
processed food products (7 CFR parts 51 and 52) by adding an option to 
allow for electronic submissions of inspection applications. This rule 
also eliminates outdated terminology referencing the telegraph. These 
changes are administrative in nature and do not impose any new 
requirements on applicants.
    Pursuant to Section 8e of the Agricultural Marketing Agreement Act 
of 1937, as amended (7 U.S.C. 601-674) (Act of 1937), whenever certain 
commodities are regulated under Federal marketing orders, imports of 
those commodities into the United States are prohibited unless they 
meet the same or comparable grade, size, quality or maturity 
requirements as those in effect for domestically-produced commodities. 
The Act of 1937 also authorizes USDA to perform inspections and other 
related functions (such as commodity sampling) on those commodities and 
to certify whether these requirements have been met.
    AMS's Specialty Crops Inspection (SCI) Division performs the 
inspections and other related functions on Section 8e imports in 
accordance with its authority under the Agricultural Marketing Act of 
1946.
    SCI Division is amending 7 CFR parts 51 and 52 to add the ability 
to submit initial inspection requests electronically and eliminate 
terminology referencing the telegraph. Individuals desiring to apply 
for an inspection for applicable fruit, vegetable, and specialty crop 
imports must complete and file AMS's form SC-357, Initial Inspection 
Request for Regulated Imported Commodities, in writing or 
electronically, to notify AMS of the need for an inspection.
    Specifically, sections 51.6 and 52.7, ``How to make an 
application'' and ``Information required in connection with 
application'', respectively, are being modified by this action.
    Amending parts 51 and 52 of title 7 to provide for the electronic 
filing of the application for inspection supports the International 
Trade Data System (ITDS), a key White House Initiative that has been 
under development for over ten years and is mandated for completion by 
December 31, 2016 (pursuant to Executive Order 13659, Streamlining the 
Export/Import Process for American's Businesses, signed on February 19, 
2014, by President Obama (79 FR 10657)). ITDS streamlines the export 
and import process for America's businesses. Upon full implementation, 
ITDS, through the Automated Commercial Environment (ACE), will allow 
businesses to electronically submit the data required by U.S. Customs 
and Border Protection (CBP) and its Partner Government Agencies (PGAs) 
to import or export cargo through a ``single window'' concept.
    The update to the inspection, certification and standards 
requirements to allow for electronic submission of

[[Page 93572]]

inspection applications will meet CBP's requirement for ITDS.

Initial Regulatory Flexibility Analysis

    Pursuant to the requirements of the Regulatory Flexibility Act 
(RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of 
this action on small entities. Accordingly, AMS has prepared this 
initial regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened.
    Small agricultural producers are defined by the Small Business 
Administration (SBA) as those having annual receipts of no more than 
$750,000 and small agricultural service firms are defined as those 
having annual receipts of no more than $7.5 million. Under these 
definitions, AMS estimates the number of companies affected is 
approximately 60,000, with 24,000, or 40%, of the companies considered 
small businesses. AMS does not foresee any negative impact on members 
of the industry, regardless of size, as a result of this interim rule.
    AMS is making these administrative changes to allow for the use of 
current technology by allowing the application for inspection to be 
submitted electronically and eliminating references to filing 
applications for service by telegraph.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection requirements for form SC-357, 
Initial Inspection Request for Regulated Imported Commodities, was 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0125, effective August 1, 2016. AMS has 
determined that no changes are required to the information collection 
requirements as a result of the changes in this action. Should 
additional changes become necessary, they would be submitted to OMB for 
approval. AMS is committed to complying with the E-Government Act, to 
promote the use of the internet and other information technologies to 
provide increased opportunities for citizen access to Government 
information and services, and for other purposes.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap or conflict with this rule.
    Finally, interested persons are invited to submit comments on this 
interim rule, including the regulatory and informational impacts of 
this action on small businesses.
    This rule invites comments on updates to application requirements 
and the administrative change to the inspection, certification and 
standards requirements for fresh and processed fruit, vegetable, and 
specialty crops. Any comments received will be considered prior to 
finalization of this rule.
    After consideration of all relevant material presented, it is found 
that this interim rule, as hereinafter set forth, will tend to 
effectuate the declared policy of the Act of 1946. Pursuant to 5 U.S.C. 
553, AMS has found and determined upon good cause that it is 
impracticable, unnecessary, and contrary to the public interest to give 
preliminary notice prior to putting this rule into effect because: (1) 
The changes in this rule reflect current practices; (2) the import 
industry is aware of the ITDS initiative and its goal to automate 
paper-based processes; (3) CBP is requiring the timely update of import 
regulations to meet the ITDS electronic data submission requirement; 
and (4) this rule provides a 60-day comment period, and all comments 
received will be considered prior to the finalization of this rule.

List of Subjects

7 CFR Part 51

    Food grades and standards, Fruits, Nuts, Reporting and 
recordkeeping, Vegetables.

7 CFR Part 52

    Food grades and standards, Food labeling, Frozen foods, Fruits, 
Reporting and recordkeeping requirements, Vegetables.


0
For the reasons set forth in the preamble, 7 CFR parts 51 and 52 are 
amended as follows:

0
1. The authority citation for parts 51 and 52 continues to read as 
follows:

    Authority:  7 U.S.C. 1621-1627.

PART 51--FRESH FRUITS, VEGETABLES AND OTHER PRODUCTS (INSPECTION, 
CERTIFICATION, AND STANDARDS)

0
2. Revise Sec.  51.6 to read as follows:


Sec.  51.6   How to make application.

    An application for inspection service may be filed in an office of 
inspection at any market referred to in Sec.  51.4 (b), (c), or (d) or 
with any inspector. It may be made in writing, orally, electronically, 
or by telephone. If made orally or by telephone, the inspector may 
require that it be confirmed by the applicant in writing or 
electronically. An application may be made for one or more lots, or it 
may be in the nature of a blanket application for inspection of all 
designated lots of a given commodity within a particular period, or for 
all designated lots loaded or received at a specified point.

PART 52--PROCESSED FRUITS AND VEGETABLES, PROCESSED PRODUCTS 
THEREOF, AND CERTAIN OTHER PROCESSED FOOD PRODUCTS

0
3. Revise Sec.  52.7 paragraph (a) to read as follows:


Sec.  52.7   Information required in connection with application.

    (a) Application for inspection service shall be made in the English 
language and may be made orally (in person or by telephone), in 
writing, or electronically. If an application for inspection is made 
orally, written confirmation may be required by the inspection service 
involved.
* * * * *

    Dated: December 14, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-30570 Filed 12-20-16; 8:45 am]
 BILLING CODE 3410-02-P