[Federal Register Volume 82, Number 102 (Tuesday, May 30, 2017)]
[Rules and Regulations]
[Pages 24455-24457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-10986]



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 Rules and Regulations
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  Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules 
and Regulations  

[[Page 24455]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1260

[No. AMS-LPS-15-0084]


Beef Promotion and Research Rules and Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This final rule amends the Beef Promotion and Research Order 
(Order) established under the Beef Promotion and Research Act of 1985 
(Act) by adding six Harmonized Tariff Schedule (HTS) codes for imported 
veal and veal products and updating assessment levels for imported veal 
and veal products based on revised determinations of live animal 
equivalencies. In addition to the foregoing, the Agricultural Marketing 
Service (AMS) is amending the Order's definition of ``Imported beef or 
beef products'' by deleting its reference to tariff numbers that are no 
longer in use and obsolete.

DATES: Effective June 29, 2017.

FOR FURTHER INFORMATION CONTACT: Mike Dinkel, Agricultural Marketing 
Specialist, Research and Promotion Division, Livestock, Poultry, and 
Seed Program; AMS, USDA; Room 2610-S, STOP 0249, 1400 Independence 
Avenue SW., Washington, DC 20250-0249; fax (202) 720-1125; telephone 
(301) 352-7497; or email [email protected].

SUPPLEMENTARY INFORMATION: 

Executive Orders 12866 and 13771, and Regulatory Flexibility Act

    This rule does not meet the definition of a significant regulatory 
action contained in section 3(f) of Executive Order 12866, and is not 
subject to review by the Office of Management and Budget (OMB). 
Additionally, because this rule does not meet the definition of a 
significant regulatory action it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017). Pursuant to the requirements 
set forth in the Regulatory Flexibility Act (RFA) [5 U.S.C. 601 et 
seq.], the Acting Administrator of AMS has considered the economic 
effect of this action on small entities and has determined that this 
final rule does not have a significant economic impact on a substantial 
number of small business entities. The effect of the Order upon small 
entities was discussed in the July 18, 1986, Federal Register [51 FR 
26132]. The purpose of RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly burdened.
    Based on conversations with importing companies, AMS estimates that 
approximately 270 importers import beef and beef products and veal and 
veal products into the U.S. and about 198 importers import live cattle 
into the U.S. The majority of these operations subject to the Order are 
considered small businesses under the criteria established by the Small 
Business Administration (SBA) [13 CFR 121.201]. SBA defines small 
agricultural service firms as those having annual receipts of $7.5 
million or less.
    This final rule imposes no significant burden on the industry. 
Importers are already required to pay assessments. It merely adds six 
HTS codes for imported veal and veal products and updates assessment 
rates for imported veal and veal products based on revised 
determinations of live animal equivalencies. The addition of HTS codes 
reflects an increase of imported veal and veal products into the U.S. 
Accordingly, the Acting Administrator of AMS has determined that this 
action does not have a significant impact on a substantial number of 
small entities.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect.
    Section 11 of the Act [7 U.S.C. 2910] provides that nothing in the 
Act may be construed to preempt or supersede any other program relating 
to beef promotion organized and operated under the laws of the U.S. or 
any state. There are no administrative proceedings that must be 
exhausted prior to any judicial challenge to the provisions of this 
rule.

Paperwork Reduction Act

    In accordance with OMB regulations [5 CFR 1320] that implement the 
Paperwork Reduction Act of 1995 [44 U.S.C. Chapter 35], the information 
collection and recordkeeping requirements contained in the Order and 
accompanying Rules and Regulations have previously been approved by OMB 
under OMB control number 0581-0093.

Background

    The Act authorized the establishment of a national beef promotion 
and research program. The final Order was published in the Federal 
Register on July 18, 1986 [51 FR 21632], and the collection of 
assessments began on October 1, 1986. The program is administered by 
the Cattlemen's Beef Promotion and Research Board (Board), appointed by 
the Secretary of Agriculture (Secretary) from industry nominations, and 
composed of 100 cattle producers and importers. The program is funded 
by a $1-per-head assessment on producers selling cattle in the U.S. as 
well as an equivalent assessment on importers of cattle, beef, and beef 
products.
    Importers pay assessments on imported cattle, beef, and beef 
products. U.S. Customs and Border Protection collects and remits the 
assessment on imported cattle, beef, and beef products. The term 
``importer'' is defined as ``any person who imports cattle, beef, or 
beef products from outside the United States'' [7 CFR 1260.117]. 
Imported beef or beef products is defined as ``products which are 
imported into the United States which the Secretary determines contain 
a substantial amount of beef including those products which have been 
assigned one or more of the following numbers in the Tariff Schedule of 
the United States'' [7 CFR 1260.121].
    On March 16, 2016, AMS published a proposed rule in the Federal 
Register [81 FR 14022] amending 7 CFR 1260.172 of the Order to add six 
HTS codes for imported veal and veal

[[Page 24456]]

products. On May 6, 2016, AMS announced in a Notice to Trade that it 
was withdrawing the proposed rule because an error was discovered in 
the imported veal carcass weight. AMS also announced at that time that 
it intended to publish another proposed rule with the correct carcass 
weight and to include the formula and an explanation of how the new 
assessment rates are calculated. On June 30, 2016, AMS published the 
withdrawal notice in the Federal Register [81 FR 42576] and on August 
23, 2016, published the corrected proposed rule in the Federal Register 
[81 FR 57495].
    The Act requires that assessments on imported beef and beef 
products and veal and veal products be determined by converting such 
imports into live animal equivalents to ascertain the corresponding 
number of head of cattle. Carcass weight is the principle factor in 
calculating live animal equivalents.
    Prior to publishing the March 16, 2016, proposed rule, the U.S. 
Department of Agriculture (USDA) received information from the Board 
regarding assessments on imported veal. The Board requested expanding 
the number of HTS codes for imported veal and veal products in order to 
capture product that is not currently being assessed and to update the 
live animal equivalency rate on imported veal to reflect the same 
assessment as domestic veal and veal products. The Board also suggested 
that AMS update the dressed veal weight to better reflect current 
dressed veal weights. The Board recommended using an average dressed 
veal weight from 2010 to the most current data. The Board stated that 
establishing an average over this period of time takes into account 
short-term highs and lows due to the cattle cycle, weather effects, and 
feed prices. In this final rule, the average dressed weight used to 
determine the assessment on imported veal and veal products is 154 
pounds.
    In order to convert carcasses and cuts back to a live animal 
equivalency, conversion factors are used. The conversion factor takes 
into account what is lost (feet, head, tail, hide, internal organs, and 
bone for boneless product) as the veal is processed into carcasses, 
bone-in cuts, and boneless cuts.
    For bone-in carcasses and cuts, a one-to-one ratio is used to 
convert product weight to a live animal equivalent. For boneless veal 
cuts, the conversion factor ``adds back'' the weight of the bones 
removed from the product.
    While the regulatory text in the proposed rule [81 FR 57495] 
includes two brief tables containing only the specific changes and 
additions, the regulatory text in this final rule includes 
comprehensive tables incorporating the changes and additions within 
previously existing tables that were never intended to be deleted.
    Finally, upon further review of this final rule and the Order, AMS 
discovered that the seven digit HTS codes listed under section 
1260.121, which defines the term ``Imported beef or beef products,'' 
are no longer in use and obsolete. Those codes were replaced by 10 
digit HTS codes currently found in section 7 CFR 1262.172(b)(2) of the 
Order. As a result, AMS is amending the definition by removing those 
obsolete HTS code references. No other changes are made to the 
definition.

Summary of Comments

    On August 23, 2016, AMS published a proposed rule with a request 
for public comment. AMS received four timely comments. Three comments 
were received from the Board and national veal and beef industry 
organizations that were relevant to the proposed rule. One comment was 
outside the scope of the rulemaking.
    Three commenters discussed the conversion factor for bone-in and 
boneless veal cuts. The commenters agreed with USDA's conversion factor 
for bone-in veal cuts. However, the commenters disagreed with USDA's 
conversion factor used for boneless imported veal cuts.
    In the proposed rule, AMS used the conversion factor of 1.32 based 
on Table 7 (Factors used to convert pounds of carcass weight to retail 
and trimmed, boneless equivalent weights for red meats) of the 
``Economic Research Service Agricultural Handbook Number 697, Weights, 
Measures, and Conversion Factors for Agricultural Commodities and Their 
Products (June 1992)'' (Handbook). However, the three commenters 
suggested that AMS should use the conversion factor of 1.46 for veal 
grading choice and good from Table 10 (Factors for converting pounds of 
boneless meat to untrimmed bone-in equivalent) of the Handbook because 
the conversion factor of 1.32 converts the boneless veal back to 0.904 
pounds of bone-in veal rather than one pound. The conversion factor of 
1.46 (proposed by the commenters) converts 0.685 pounds of boneless 
veal back to one pound of bone-in veal based on the equation: 
0.685(1.46) = 1.0.
    AMS believes the comments have merit. Accordingly, the new 
assessment rates for veal and veal products will be:
[GRAPHIC] [TIFF OMITTED] TR30MY17.010

[GRAPHIC] [TIFF OMITTED] TR30MY17.011

List of Subjects in 7 CFR Part 1260

    Administrative practice and procedure, Advertising, Agricultural 
research, Imports, Marketing agreement, Meat and meat products, 
Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, AMS amends 7 CFR part 
1260 as follows:

PART 1260--BEEF PROMOTION AND RESEARCH

0
1. The authority citation for 7 CFR part 1260 continues to read as 
follows:

    Authority: 7 U.S.C. 2901-2911 and 7 U.S.C. 7401.


0
2. Revise Sec.  1260.121 to read as follows:


Sec.  1260.121  Imported beef or beef products

    Imported beef or beef products means products which are imported 
into the United States which the Secretary

[[Page 24457]]

determines contain a substantial amount of beef including those 
products which have been assigned one or more numbers in the Tariff 
Schedule of the United States.

0
3. Amend Sec.  1260.172 by revising paragraph (b)(2) to read as 
follows:


Sec.  1260.172  Assessments.

* * * * *
    (b) * * *
    (2) The assessment rates for imported cattle, beef, beef products, 
are as follows:

                          Imported Live Cattle
------------------------------------------------------------------------
                                                            Assessment
                         HTS No.                           rate per head
------------------------------------------------------------------------
0102.10.0010............................................           $1.00
0102.10.0020............................................            1.00
0102.10.0030............................................            1.00
0102.10.0050............................................            1.00
0102.90.2011............................................            1.00
0102.90.2012............................................            1.00
0102.90.4024............................................            1.00
0102.90.4028............................................            1.00
0102.90.4034............................................            1.00
0102.90.4038............................................            1.00
0102.90.4054............................................            1.00
0102.90.4058............................................            1.00
0102.90.4062............................................            1.00
0102.90.4064............................................            1.00
0102.90.4066............................................            1.00
0102.90.4068............................................            1.00
0102.90.4072............................................            1.00
0102.90.4074............................................            1.00
0102.90.4082............................................            1.00
0102.90.4084............................................            1.00
------------------------------------------------------------------------


                     Imported Beef and Beef Products
------------------------------------------------------------------------
                                                            Assessment
                         HTS No.                            rate per kg
------------------------------------------------------------------------
0201.10.0510............................................       .01431558
0201.10.0590............................................       .00379102
0201.10.1010............................................       .01431558
0201.10.1090............................................       .00379102
0201.10.5010............................................       .01431558
0201.10.5090............................................       .00511787
0201.20.0200............................................       .00530743
0201.20.0400............................................       .00511787
0201.20.0600............................................       .00379102
0201.20.1000............................................       .00530743
0201.20.3000............................................       .00511787
0201.20.5000............................................       .00379102
0201.20.5010............................................       .01431558
0201.20.5020............................................       .01431558
0201.20.8090............................................       .00379102
0201.30.0200............................................       .00530743
0201.30.0400............................................       .00511787
0201.30.0600............................................       .00379102
0201.30.1000............................................       .00530743
0201.30.3000............................................       .00511787
0201.30.5000............................................       .00511787
0201.30.5010............................................       .02090075
0201.30.5020............................................       .02090075
0201.30.8090............................................       .00511787
0202.10.0510............................................       .01431558
0202.10.0590............................................       .00379102
0202.10.1010............................................       .01431558
0202.10.1090............................................       .00370102
0202.10.5010............................................       .01431558
0202.10.5090............................................       .00379102
0202.20.0200............................................       .00530743
0202.20.0400............................................       .00511787
0202.20.0600............................................       .00379102
0202.20.1000............................................       .00530743
0202.20.3000............................................       .00511787
0202.20.5000............................................       .00379102
0202.20.8000............................................       .00379102
0202.30.0200............................................       .00530743
0202.30.0400............................................       .00511787
0202.30.0600............................................       .00527837
0202.30.1000............................................       .00530743
0202.30.3000............................................       .00511787
0202.30.5000............................................       .00511787
0202.30.5010............................................       .02090075
0202.30.5020............................................       .02090075
0202.30.8000............................................       .00379102
0206.10.0000............................................       .00379102
0206.21.0000............................................       .00379102
0206.22.0000............................................       .00379102
0206.29.0000............................................       .00379102
0210.20.0000............................................       .00615701
1601.00.4010............................................       .00473877
1601.00.4090............................................       .00473877
1601.00.6020............................................       .00473877
1602.50.0900............................................       .00663428
1602.50.1020............................................       .00663428
1602.50.1040............................................       .00663428
1602.50.2020............................................       .00701388
1602.50.2040............................................       .00701388
1602.50.6000............................................       .00720293
------------------------------------------------------------------------

* * * * *

    Dated: May 23, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-10986 Filed 5-26-17; 8:45 am]
BILLING CODE 3410-02-P