[Federal Register Volume 85, Number 74 (Thursday, April 16, 2020)]
[Notices]
[Pages 21162-21166]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08106]


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Notices
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains documents other than rules 
or proposed rules that are applicable to the public. Notices of hearings 
and investigations, committee meetings, agency decisions and rulings, 
delegations of authority, filing of petitions and applications and agency 
statements of organization and functions are examples of documents 
appearing in this section.

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Federal Register / Vol. 85, No. 74 / Thursday, April 16, 2020 / 
Notices

[[Page 21162]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Document No. AMS-LRRS-20-0033]


2020/2021 Rates Charged for AMS Services

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

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

SUMMARY: The Agricultural Marketing Service (AMS) is announcing the 
2020/2021 rates it will charge for voluntary grading, inspection, 
certification, auditing, and laboratory services for a variety of 
agricultural commodities including meat and poultry, fruits and 
vegetables, eggs, dairy products, and cotton and tobacco. The 2020/2021 
regular, overtime, holiday, and laboratory services rates will be 
applied at the beginning of the crop year, fiscal year or as required 
by law depending on the commodity. Other starting dates are added to 
this notice based on cotton industry practices. This action establishes 
the rates for user-funded programs based on costs incurred by AMS. This 
year, all AMS user fee rates will remain unchanged.

DATES: April 17, 2020.

FOR FURTHER INFORMATION CONTACT: Charles Parrott, AMS, U.S. Department 
of Agriculture, Room 3070-S, 1400 Independence Ave. SW, Washington, DC 
20250; telephone (202) 260-9144, fax (202) 692-0313, email 
[email protected].

SUPPLEMENTARY INFORMATION: The Agricultural Marketing Act of 1946, as 
amended, (AMA) (7 U.S.C. 1621-1627), provides for the collection of 
fees to cover costs of various inspection, grading, certification or 
auditing services covering many agricultural commodities and products. 
The AMA also provides for the recovery of costs incurred in providing 
laboratory services. The Cotton Statistics and Estimates Act (7 U.S.C. 
471-476) and the U.S. Cotton Standards Act (7 U.S.C. 51-65) provide for 
classification of cotton and development of cotton standards materials 
necessary for cotton classification. The Cotton Futures Act (7 U.S.C. 
15b) provides for futures certification services and the Tobacco 
Inspection Act (7 U.S.C. 511-511s) provides for tobacco inspection and 
grading. These Acts also provide for the recovery of costs associated 
with these services.
    On November 13, 2014, the Department of Agriculture (Department) 
published in the Federal Register a final rule that established 
standardized formulas for calculating the fees charged by AMS user-
funded programs (79 FR 67313). Every year since then, the Department 
has published in the Federal Register a notice announcing the rates for 
its user-funded programs.
    This notice announces the 2020/2021 fee rates for voluntary 
grading, inspection, certification, auditing, and laboratory services 
for a variety of agricultural commodities including meat and poultry, 
fruits and vegetables, eggs, dairy products, and cotton and tobacco on 
a per-hour rate and, in some instances, the equivalent per-unit cost. 
The per-unit cost is provided to facilitate understanding of the costs 
associated with the service to the industries that historically used 
unit-cost basis for payment. The fee rates will be effective at the 
beginning of the fiscal year, crop year, or as required by specific 
laws.
    The rates reflect direct and indirect costs of providing services. 
Direct costs include the cost of salaries, employee benefits, and, if 
applicable, travel and some operating costs. Indirect or overhead costs 
include the cost of Program and Agency activities supporting the 
services provided to the industry. The formula used to calculate these 
rates also includes operating reserve, which may add to or draw upon 
the existing operating reserves.
    These services include the grading, inspection or certification of 
quality factors in accordance with established U.S. Grade Standards or 
other specifications; audits or accreditation according to 
International Organization for Standardization (ISO) standards and/or 
Hazard Analysis and Critical Control Point (HACCP) principles; and 
other marketing claims. The quality grades serve as a basis for market 
prices and reflect the value of agricultural commodities to both 
producers and consumers. AMS' grading and certification, audit and 
accreditation, plant process and equipment verification, and laboratory 
approval services are voluntary tools paid for by the users on a fee-
for-service basis. The agriculture industry can use these tools to 
promote and communicate the quality of agricultural commodities to 
consumers. Laboratory services are provided for analytic testing, 
including but not limited to chemical, microbiological, biomolecular, 
and physical analyses. AMS is required by statute to recover the costs 
associated with these services.
    As required by the Cotton Statistics and Estimates Act (7 U.S.C. 
471-476), consultations regarding the establishment of the fee for 
cotton classification with U.S. cotton industry representatives are 
held in the beginning of the year when most industry stakeholder 
meetings take place. Representatives of all segments of the cotton 
industry, including producers, ginners, bale storage facility 
operators, merchants, cooperatives, and textile manufacturers were 
informed of the fees during various industry-sponsored forums.

Rates Calculations

    AMS calculated the rate for services, per hour per program 
employee, using the following formulas (a per-unit base is included for 
programs that charge for services on a per-unit basis):
    (1) Regular rate. The total AMS grading, inspection, certification, 
classification, audit, or laboratory service program personnel direct 
pay divided by direct hours for the previous year, which is then 
multiplied by the next year's percentage of cost of living increase, 
plus the benefits rate, plus the operating rate, plus the allowance for 
bad debt rate. If applicable, travel expenses may also be added to the 
cost of providing the service.
    (2) Overtime rate. The total AMS grading, inspection, 
certification, classification, audit, or laboratory service program 
personnel direct pay divided by direct hours, which is then multiplied 
by the next year's percentage of cost of living increase and then 
multiplied by 1.5, plus the benefits rate, plus the operating rate, 
plus an allowance for bad debt. If applicable,

[[Page 21163]]

travel expenses may also be added to the cost of providing the service.
    (3) Holiday rate. The total AMS grading, inspection, certification, 
classification, audit, or laboratory service program personnel direct 
pay divided by direct hours, which is then multiplied by the next 
year's percentage of cost of living increase and then multiplied by 2, 
plus the benefits rate, plus the operating rate, plus an allowance for 
bad debt. If applicable, travel expenses may also be added to the cost 
of providing the service.
    All rates are per-hour except when a per-unit cost is noted. The 
specific amounts in each rate calculation are available upon request 
from the specific AMS program.

                                                                     2020/2021 Rates
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               Includes travel
                                                   Regular        Overtime         Holiday      costs in rate                  Start date
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Cotton Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          7 CFR Part 27--Cotton Classification Under Cotton Futures Legislation
 
                                Subpart A--Regulations; Sec.  Sec.   27.80-27.90 Costs of Classifications and Micronaire
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Cotton Standardization
--------------------------------------------------------------------------------------------------------------------------------------------------------
Certification for Futures Contract (Grading                      $4.25/bale                                 X   August 1, 2020.
 services for samples submitted by CCC-
 licensed samplers).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Transfer of Certification Data to New Owner                      $0.20/bale                                 X   August 1, 2020.
 or Certified Warehouse (Electronic transfer
 performed).
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 7 CFR Part 28--Cotton Classing, Testing, and Standards
 
                     Subpart A--Regulations Under the United States Cotton Standards Act; Sec.  Sec.   28.115-28.126 Fees and Costs
 
  Subpart D--Cotton Classification and Market News Service for Producers; Sec.   28.909 Costs; Sec.   28.910 Classification of Samples and Issuance of
                                                Classification Data; Sec.   28.911 Review Classification.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Cotton Grading
--------------------------------------------------------------------------------------------------------------------------------------------------------
Form 1: Grading Services for Producers                           $2.30/bale                                 X   July 1, 2020.
 (submitted by licensed sampler).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Form 1 Review (new sample submitted by                           $2.30/bale                                 X   July 1, 2020.
 licensed sampler).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Form A Determinations (sample submitted by                       $2.30/bale                                 X   July 1, 2020.
 licensed warehouse).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Form C Determinations (sample submitted by                       $2.30/bale                    ...............  July 1, 2020.
 non-licensed entity; bale sampled under USDA
 supervision).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Form D Determination (sample submitted by                        $2.30/bale                                 X   July 1, 2020.
 owner or agent; classification represents
 sample only).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Foreign Growth Classification (sample of                        $6.00/sample                                X   August 1, 2020.
 foreign growth cotton submitted by owner or
 agent; classification represents sample
 only).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Arbitration (comparison of a sample to the                      $6.00/sample                                X   August 1, 2020.
 official standards or a sample type).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Practical Cotton Classing Exam (for non-USDA      Exam: $150/applicant Reexamination: $130/                 X   July 1, 2020.
 employees).                                                      applicant
--------------------------------------------------------------------------------------------------------------------------------------------------------
Special Sample Handling (return of samples                      $0.50/sample                                X   July 1, 2020.
 per request).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Electronic Copy of Classification Record.....     $0.05/bale ($5.00/month minimum with any                  X   July 1, 2020.
                                                              records received)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Form A Rewrite (reissuance of Form 1, Form A,         $0.15/bale or $5.00/page minimum                      X   August 1, 2020.
 or Futures Certification data or
 combination).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Form R (reissuance of Form 1 classification           $0.15/bale or $5.00/page minimum                      X   July 1, 2020.
 only).
--------------------------------------------------------------------------------------------------------------------------------------------------------
International Instrument Level Assessment....                   $4.00/sample                                X   July 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 21164]]

 
                                                                       Dairy Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
              7 CFR Part 58--Grading and Inspection, General Specifications for Approved Plants and Standards for Grades of Dairy Products
 
   Subpart A--Regulations Governing the Inspection and Grading Services of Manufactured or Processed Dairy Products; Sec.  Sec.   58.38-58.46 Fees and
                                                                         Charges
--------------------------------------------------------------------------------------------------------------------------------------------------------
Continuous Resident Grading Service..........          $76.00          $90.92         $107.24               X   October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-resident and Intermittent Grading                  $82.00          $96.76         $116.64               X   October 1, 2020.
 Service; State Graders; Equipment Review.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-resident Services 6pm-6am (10 percent              $90.20         $106.44         $128.32               X   October 1, 2020.
 night differential).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Export Certificate Services..................          $82.00             N/A             N/A  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Special Handling.............................          $41.00             N/A             N/A  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fax Charge...................................           $4.00             N/A             N/A  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Derogation Application.......................         $123.00             N/A             N/A  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Specialty Crops Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          7 CFR Part 51--Fresh Fruits, Vegetables and Other Products (Inspection, Certification, and Standards)
 
    Subpart A--Regulations; Sec.  Sec.   51.37-51.44 Schedule of Fees and Charges at Destination Markets Sec.   51.45 Schedule of Fees and Charges at
                                                                  Shipping Point Areas
--------------------------------------------------------------------------------------------------------------------------------------------------------
Quality and Condition Inspections for Whole                    $210.00 per lot                 ...............  October 1, 2020.
 Lots.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Quality and Condition Half Lot or Condition-                   $174.00 per lot                 ...............  October 1, 2020.
 Only Inspections for Whole Lots.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Condition--Half Lot..........................                  $161.00 per lot                 ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Quality and Condition or Condition-Only                        $96.00 per lot                  ...............  October 1, 2020.
 Inspections for Additional Lots of the Same
 Product.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dockside Inspections--Each package weighing <                  $0.044 per pkg.                 ...............  October 1, 2020.
 30 lbs..
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dockside Inspections--Each package weighing >                  $0.068 per pkg.                 ...............  October 1, 2020.
 30 lbs..
--------------------------------------------------------------------------------------------------------------------------------------------------------
Charge per Individual Product for Dockside                     $210.00 per lot                 ...............  October 1, 2020.
 Inspection.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Charge per Each Additional Lot of the Same                     $96.00 per lot                  ...............  October 1, 2020.
 Product.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Inspections for All Hourly Work..............          $93.00         $125.00         $157.00  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Audit Services--Federal......................                      $115.00                     ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Audit Services--State........................                      $115.00                     ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
GFSI Certification Fee.......................                  $250 per audit                  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                      7 CFR Part 52--Processed Fruits and Vegetables, Processed Products Thereof, and Other Processed Food Products
 
                         Subpart--Regulations Governing Inspection and Certification; Sec.  Sec.   52.41-52.51 Fees and Charges
--------------------------------------------------------------------------------------------------------------------------------------------------------
Lot Inspections..............................          $75.00         $104.00         $133.00  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
In-plant Inspections Under Annual Contract             $75.00         $103.00         $130.00  ...............  October 1, 2020.
 (year-round).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Additional Graders (in-plant) or Less Than             $85.00         $114.00         $142.00  ...............  October 1, 2020.
 Year-Round.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Audit Services--Federal......................                      $115.00                     ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Audit Services--State........................                      $115.00                     ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 21165]]

 
GFSI Certification Fee.......................                  $250 per audit                  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Meat Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                             7 CFR Part 54--Meats, Prepared Meats, and Meat Products (Grading, Certification, and Standards)
 
                                          Subpart A--Regulations; Sec.  Sec.   54.27-54.28 Charges for Service
--------------------------------------------------------------------------------------------------------------------------------------------------------
Scheduled Grading............................          $84.00         $103.00         $121.00               X   October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Unscheduled Grading..........................         $114.00         $132.00         $154.00  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Scheduled Night Differential (6 p.m.-6 a.m.).          $93.00         $113.00         $121.00               X   October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
   7 CFR Part 62--Livestock, Meat and Other
  Agricultural Commodities (Quality Systems
            Verification Programs)
 
   Subpart A--Quality Systems Verification
   Definitions Sec.   62.300 Fees and Other
              Costs for Service
--------------------------------------------------------------------------------------------------------------------------------------------------------
Auditing Activities..........................                      $115.00                     ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Poultry Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     7 CFR Part 56--Voluntary Grading of Shell Eggs
 
                                       Subpart A--Grading of Shell Eggs; Sec.  Sec.   56.45-56.54 Fees and Charges
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                             7 CFR Part 70--Voluntary Grading of Poultry and Rabbit Products
 
                              Subpart A--Grading of Poultry and Rabbit Products; Sec.  Sec.   70.70-70.78 Fees and Charges
--------------------------------------------------------------------------------------------------------------------------------------------------------
Scheduled Grading............................          $62.00          $80.00          $97.00               X   October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Scheduled, Night Differential (6 p.m.-6 a.m.)          $68.00          $89.00          $97.00               X   October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Scheduled, Sunday Differential...............          $79.00         $103.00             N/A               X   October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Scheduled, Sunday and Night Differential.....          $88.00         $114.00             N/A               X   October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Unscheduled Grading..........................          $99.00         $122.00         $147.00  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Audit Service................................                      $115.00                     ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Science and Technology Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                        7 CFR Part 91--Services and General Information (Science and Technology)
 
                                                  Subpart I--Fees and Charges; Sec.  Sec.   91.37-91.45
--------------------------------------------------------------------------------------------------------------------------------------------------------
Laboratory Testing Services..................          $98.00         $115.00         $131.00  ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Laboratory Approval Services \1\.............         $188.00         $212.00         $237.00               X   January 1, 2021.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                       7 CFR Part 75--Regulations for Inspection and Certification of Quality of Agricultural and Vegetable Seeds
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Sec.   75.41 General
--------------------------------------------------------------------------------------------------------------------------------------------------------
Laboratory Testing...........................          $58.00          $86.00         $115.00               X   October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Administrative Fee...........................              $14.50 per certificate              ...............  October 1, 2020.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 21166]]

 
                                                                      Tobacco Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            7 CFR Part 29--Tobacco Inspection
 
  Subpart A--Policy Statement and Regulations Governing the Extension of Tobacco Inspection and Price Support Services to New Markets and to Additional
                                                              Sales on Designated Markets;
 
  Subpart B--Regulations; Sec.  Sec.   29.123-29.129 Fees and Charges; Sec.   29.500 Fees and charges for inspection and acceptance of imported tobacco
 
  Subpart F--Policy Statement and Regulations Governing the Identification and Certification of Non-quota Tobacco Produced and Marketed in Quota Area;
                                                             Sec.   29.9251 Fees and Charges
--------------------------------------------------------------------------------------------------------------------------------------------------------
Domestic Permissive Inspection and                     $55.00          $64.00          $72.00  ...............  July 1, 2020.
 Certification (re-grading of domestic
 tobacco for processing plants, retesting of
 imported tobacco, and grading tobacco for
 research stations.).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Export Permissive Inspection and                                $0.0025/pound                               X   July 1, 2020.
 Certification (grading of domestic tobacco
 for manufacturers and dealers for duty
 drawback consideration).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Grading for Risk Management Agency (for                         $0.015/pound                                X   July 1, 2020.
 Tobacco Crop Insurance Quality Adjustment
 determinations).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pesticide Test Sampling (collection of                   $0.0065/kg or $0.0029/pound                        X   July 1, 2020.
 certified tobacco sample and shipment to AMS
 National Science Laboratory for testing).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pesticide Retest Sampling (collection of               $115.00/sample and $55.00/hour                       X   July 1, 2020.
 certified tobacco sample from a previously
 sampled lot for re-testing at the AMS
 National Science Laboratory; fee includes
 shipping).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Standards Course (training by USDA-certified                  $1,250.00/person                 ...............  July 1, 2020.
 instructor on tobacco grading procedures).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Import Inspection and Certification (grading             $0.0170/kg or $0.0080/pound                        X   July 1, 2020
 of imported tobacco for manufacturers and.
dealers).....................................
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Travel costs outside the United States will be added to the fee, if applicable.


    Authority: 7 U.S.C. 15b; 7 U.S.C. 473a-b; 7 U.S.C. 55 and 61; 7 
U.S.C. 51-65; 7 U.S.C. 471-476; 7 U.S.C. 511, 511s; and 7 U.S.C. 
1621-1627.

Bruce Summers,
Administrator.
[FR Doc. 2020-08106 Filed 4-15-20; 8:45 am]
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