[Federal Register Volume 85, Number 5 (Wednesday, January 8, 2020)]
[Rules and Regulations]
[Pages 825-827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-28058]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
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 The Code of Federal Regulations is sold by the Superintendent of Documents. 
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  Federal Register / Vol. 85, No. 5 / Wednesday, January 8, 2020 / 
Rules and Regulations  

[[Page 825]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1260

[No. AMS-LP-19-0054]


Beef Promotion and Research Rules and Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Direct final rule.

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

SUMMARY: The Agricultural Marketing Service (AMS) is amending the Beef 
Promotion and Research Order (Order) by updating the Harmonized Tariff 
Schedule (HTS) codes for imported cattle, beef, veal, and beef product 
to conform with recent updates by the U.S. International Trade 
Commission (USITC) and used by the U.S. Customs and Border Protection 
to assist in the collection of beef checkoff assessments.

DATES: This direct final rule is effective February 7, 2020, without 
further action or notice, unless significant adverse comment is 
received by January 23, 2020. If significant adverse comment is 
received, AMS will publish a timely withdrawal of the amendment in the 
Federal Register.

ADDRESSES: Comments should be posted online at www.regulations.gov. 
Comments received will be posted without change, including any personal 
information provided. All comments should reference the docket number 
AMS-LP-19-0054, the date of submission, and the page number of this 
issue of the Federal Register. Comments may also be sent to Kahl 
Sesker, Agricultural Marketing Specialist; Research and Promotion 
Division; Livestock and Poultry Program, AMS, USDA; Room 2610-S, STOP 
0251, 1400 Independence Avenue SW, Washington, DC 20250-0251; or via 
fax to (202) 720-1125. Comments will be made available for public 
inspection at the above address during regular business hours or via 
the internet at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Kahl Sesker, Agricultural Marketing 
Specialist; Research and Promotion Division, Livestock and Poultry 
Program; AMS, U.S. Department of Agriculture (USDA); Room 2610-S, STOP 
0251, 1400 Independence Avenue SW, Washington, DC 20250-0251; fax (202) 
720-1125; telephone (202) 253-8253; or email [email protected].

SUPPLEMENTARY INFORMATION: 

Executive Orders 12866, 13563, and 13771

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health, and safety effects; distributive impacts; and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, reducing costs, harmonizing rules, and promoting 
flexibility. This rule does not meet the definition of a significant 
regulatory action contained in section 3(f) of Executive Order 12866 
and therefore, the Office of Management and Budget (OMB) has waived 
review of this action. 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).

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 Beef Promotion and Research Act of 1985 (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.

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. The review reveals that is regulation would not 
have substantial and direct effects on Tribal governments or 
significant Tribal implications.

Paperwork Reduction Act

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

Background

    The Act authorized the establishment of a national beef promotion 
and research program. Title 7 CFR part 1260, the Beef Promotion and 
Research Order (the 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 99 
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, veal, and beef 
products.
    Importers pay assessments on imported cattle, beef, veal, and beef 
products. U.S. Customs and Border Protection collects and remits these 
assessments to the Board. 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).
    The Act requires that assessments on imported beef and beef 
products and

[[Page 826]]

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 principal factor in calculating live 
animal equivalents.
    USITC periodically updates HTS codes. Since USITC updates HTS on a 
regular basis, AMS routinely amends 7 CFR 1260.172(b) to incorporate 
the updated HTS codes for imported cattle, beef, veal, and beef product 
into the Order so that importers know what beef products are assessed 
and their respective assessment rates. Consistent with USITC's recent 
updates to HTS codes, AMS is updating the HTS codes in the Order 
through this direct final rule.

Regulatory Flexibility Act

    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. Pursuant to the requirements set forth in the 
Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.), AMS has 
considered the economic effect of this action on small entities and has 
determined that this direct final rule does not have a significant 
economic impact on a substantial number of small entities.
    Effective August 19, 2019, the SBA published an interim final rule 
(RIN 3245-AH17) that adjusts the monetary-based size standards for 
inflation. As a result of this rule, the size classification for small 
beef, veal, and cattle importing firms changed from sales of $750,000 
or less to sales of $1,000,000 or less. As a result, a supplemental 
analysis was conducted to determine whether the change in the size 
standard would lead to a significant change in the number of firms 
affected by this rule.
    According to the U.S. Department of Agriculture's (USDA) National 
Agricultural Statistics Service's (NASS) 2017 Census of Agriculture, 
the number of operations in the United States with cattle totaled 
882,692.\1\ The most recent (2017) Census of Agriculture data show that 
roughly 4 percent of producers with cattle, or 31,601 operations, have 
annual receipts of $1,000,000 or more.\2\ Therefore, the vast majority 
of cattle producers, 96 percent, would be considered small businesses 
with the new SBA guidance. It should be noted that producers are only 
indirectly impacted by the proposed rule.
---------------------------------------------------------------------------

    \1\ https://www.nass.usda.gov/AgCensus/index.php.
    \2\ https://quickstats.nass.usda.gov/results/EC7DF8E2-6791-347F-BC4F-3F81988D7DDB.
---------------------------------------------------------------------------

    Cattle, beef, and veal importers are directly impacted by the 
proposed rule. The original number of importing firms was determined in 
consultation with the Meat Import Council of America (MICA). AMS 
estimates that approximately 270 firms that import beef or beef 
products, and veal and veal products into the United States, and about 
198 firms that import live cattle into the United States. The 2012 
Economic Census, produced by the U.S. Commerce Department, and 
accessible through the American Fact Finder website, provides the most 
recent data on firm size by sales revenue.\3\ However, data on the firm 
size of beef, veal, and cattle importers are not available in this or 
other economic databases, as there is no NAICS code specific enough for 
this industry segment.
---------------------------------------------------------------------------

    \3\ https://factfinder.census.gov.
---------------------------------------------------------------------------

    The 2012 Economic Census does have information on the broader 
marketing chain, specifically the size distribution of meat and meat 
product wholesalers (NAICS 42447).\4\ These data show that 18 percent 
of firms in the industry classification of meat and meat product 
wholesalers are now considered small businesses under the new size 
standard.
---------------------------------------------------------------------------

    \4\ Source: U.S. Census Bureau, 2012 Economic Census, Search 
code EC1242SSSZ1_with_ann.
---------------------------------------------------------------------------

    Recent import trade data was also considered for understanding the 
overall dynamics of this industry segment. The Foreign Agricultural 
Service reports monthly trade data for traded agricultural products by 
product type. An analysis of these data over a five-year period show 
only minor changes in the annual import values for both beef and veal 
importers and cattle importers, suggesting little change in the sector 
overall.
    This direct final rule imposes no significant burden on the 
industry. Importers are already required to pay assessments. This 
action merely updates HTS codes in the Order that USITC has changed for 
imported cattle, beef, veal, and beef products. Accordingly, AMS has 
determined that this action does not have a significant impact on a 
substantial number of small entities.
    USITC periodically updates HTS codes. Since USITC updates HTS on a 
regular basis, AMS routinely amends 7 CFR 1260.172(b) to incorporate 
the updated HTS codes for imported cattle, beef, veal, and beef product 
into the Order so that importers know what beef products are assessed 
and their respective assessment rates.

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. 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, veal, beef 
products, are as follows:

            Table 1 to Paragraph (b)(2)--Imported Live Cattle
------------------------------------------------------------------------
                                                            Assessment
                        HTS code                           rate per head
------------------------------------------------------------------------
0102.21.0010............................................           $1.00
0102.21.0020............................................            1.00
0102.21.0030............................................            1.00
0102.21.0050............................................            1.00
0102.29.2011............................................            1.00
0102.29.2012............................................            1.00
0102.29.4024............................................            1.00
0102.29.4028............................................            1.00
0102.29.4034............................................            1.00
0102.29.4038............................................            1.00
0102.29.4054............................................            1.00
0102.29.4058............................................            1.00
0102.29.4062............................................            1.00
0102.29.4064............................................            1.00
0102.29.4066............................................            1.00
0102.29.4068............................................            1.00
0102.29.4072............................................            1.00
0102.29.4074............................................            1.00
0102.29.4082............................................            1.00
0102.29.4084............................................            1.00
------------------------------------------------------------------------


      Table 2 to Paragraph (b)(2)--Imported Beef and Beef Products
------------------------------------------------------------------------
                                                            Assessment
                        HTS code                            rate per kg
------------------------------------------------------------------------
0201.10.0510............................................
0201.10.0590............................................       .01431558
0201.10.1010............................................       .00379102
0201.10.1090............................................       .01431558
0201.10.5010............................................       .00379102
0201.10.5090............................................       .01431558
0201.20.0200............................................       .00511787
0201.20.0400............................................       .00530743
0201.20.0600............................................       .00511787
0201.20.1000............................................       .00379102
0201.20.3000............................................       .00530743
0201.20.5015............................................       .00511787
0201.20.5025............................................       .01431558
0201.20.5035............................................       .00379102
0201.20.5045............................................       .00379102
0201.20.5055............................................       .00379102

[[Page 827]]

 
0201.20.5065............................................       .00379102
0201.20.5075............................................       .00379102
0201.20.5085............................................       .00379102
0201.20.8090............................................       .00379102
0201.30.0200............................................       .00379102
0201.30.0400............................................       .00379102
0201.30.0600............................................       .00530743
0201.30.1000............................................       .00511787
0201.30.3000............................................       .00379102
0201.30.5015............................................       .00530743
0201.30.5025............................................       .00511787
0201.30.5035............................................       .02090075
0201.30.5045............................................       .00511787
0201.30.5055............................................       .00511787
0201.30.5065............................................       .00511787
0201.30.5075............................................       .00511787
0201.30.5085............................................       .00511787
0201.30.8090............................................       .00511787
0202.10.0590............................................       .00511787
0202.10.1010............................................       .01431558
0202.10.1090............................................       .00379102
0202.10.5010............................................       .01431558
0202.10.5090............................................       .00370102
0202.20.0200............................................       .01431558
0202.20.0400............................................       .00379102
0202.20.0600............................................       .00530743
0202.20.1000............................................       .00511787
0202.20.3000............................................       .00379102
0202.20.5025............................................       .00530743
0202.20.5035............................................       .00511787
0202.20.5045............................................       .00379102
0202.20.5055............................................       .00379102
0202.20.5065............................................       .00379102
0202.20.5075............................................       .00379102
0202.20.5085............................................       .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
0202.30.5015............................................       .02090075
0202.30.5025............................................       .00511787
0202.30.5035............................................       .00511787
0202.30.5045............................................       .00511787
0202.30.5055............................................       .00511787
0202.30.5065............................................       .00511787
0202.30.5075............................................       .00511787
0202.30.5085............................................       .00511787
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
1602.50.0500............................................       .00771610
1602.50.0720............................................       .00663428
1602.50.0740............................................       .00663428
1602.50.0800............................................       .00663428
1602.50.2120............................................       .00701388
1602.50.2140............................................       .00701388
1602.50.6000............................................       .00720293
------------------------------------------------------------------------

* * * * *

    Dated: December 20, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2019-28058 Filed 1-7-20; 8:45 am]
 BILLING CODE 3410-02-P