[Federal Register Volume 89, Number 110 (Thursday, June 6, 2024)]
[Rules and Regulations]
[Pages 48257-48266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12400]



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 Rules and Regulations
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  Federal Register / Vol. 89, No. 110 / Thursday, June 6, 2024 / Rules 
and Regulations  

[[Page 48257]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 800

[Doc. No. AMS-FGIS-24-0010]
RIN 0581-AE28


Fees for Official Inspection and Weighing Services Under the 
United Stated Grain Standards Act

AGENCY: Agricultural Marketing Service, Department of Agriculture 
(USDA).

ACTION: Interim rule; request for comments.

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

SUMMARY: The Agricultural Marketing Service (AMS), Federal Grain 
Inspection Service (FGIS or the Service) is revising the fee schedule 
for official inspection and weighing services performed under the 
United States Grain Standards Act (USGSA), as amended. Specifically, 
this interim rule announces the new rates for the remainder of fiscal 
year 2024, and until such time as new fees are set by a final rule. AMS 
intends to follow this rulemaking with a notice of proposed rulemaking 
establishing a new regulatory fee formula. The necessary and immediate 
changes to the current fees will prevent FGIS cessation of services due 
to insufficient required funding and, most urgently, avoid significant 
negative impacts to the $54 billion grain export industry. This interim 
rule will allow FGIS to fully recover the actual costs of providing 
services and re-establish a 3- to 6-month operating reserve, consistent 
with the USGSA, and, in doing so, ensure uninterrupted essential grain 
inspection services that enable U.S. companies to continue exporting 
and marketing U.S. grain around the world.

DATES: This interim rule is effective July 8, 2024. Comments are due 
July 8, 2024.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this interim rule. Comments may be submitted through the 
Federal eRulemaking Portal at https://www.regulations.gov. Follow the 
online instructions for submitting comments. Please reference Doc. No. 
AMS-FGIS-24-0010. Comments may also be submitted by email to Anthony 
Goodeman at [email protected]. All comments submitted in 
response to this rule will be included in the record and will be made 
available to the public on the internet at the address provided above. 
Please be advised that the identity of the individuals or entities 
submitting the comments will be made public. Prospective customers can 
find the fee schedules posted on AMS's public website: https://www.ams.usda.gov/about-ams/fgis-program-directives.

FOR FURTHER INFORMATION CONTACT: Denise Ruggles, Executive Program 
Analyst, USDA, AMS, FGIS, Telephone: 816-702-3897, Email: 
[email protected]; or Anthony Goodeman, Senior Policy Advisor, 
USDA, AMS, FGIS, Telephone: 202-720-2091, Email: 
[email protected].

SUPPLEMENTARY INFORMATION: This rule establishes revised 2024 fees for 
grain inspection and weighing services provided by the Agricultural 
Marketing Service's (AMS) Federal Grain Inspection Service (FGIS or the 
Service). The new fees account for the actual cost of FGIS providing 
official services. The new fees were calculated using formulas modeled 
after those in other AMS user-fee grading programs. A forthcoming 
notice of proposed rulemaking to be published separately will amend 
FGIS's user fee regulations to incorporate the formulas.

Background

    The USGSA authorizes and requires the Secretary to charge and 
collect reasonable fees to cover the estimated costs for performing 
official grain inspection and weighing services (which are mandatory 
under the Act for U.S. grain exports). In 2015, Congress amended the 
USGSA to provide that ``[i]n order to maintain an operating reserve of 
not less than 3 and not more than 6 months, the Secretary shall adjust 
the fees . . . not less frequently than annually.'' (7 U.S.C. 79(j)(4) 
and 79a(l)(3)) To comply with these provisions, FGIS (then the Grain 
Inspection, Packers, and Stockyards Administration (GIPSA)) issued 
regulations requiring the agency to review and adjust fees annually in 
order to maintain a 3- to 6-month reserve of operating expenses. (81 FR 
49855)
    Through those regulations, the Service determined that a 4.5-month 
operating reserve would comply with the statutorily required operating 
reserve of 3 to 6 months. In years when the operating reserve has been 
sufficient, for each $1 million that the reserve's balance exceeded 4.5 
months, the Service reduced fees by 2 percent, and no greater than 5 
percent. Conversely, in years when the operating reserve was projected 
to be insufficient, for each $1 million that the balance fell short of 
the 4.5-month target, the Service increased fees by 2 percent, while 
also capping such increases at 5 percent. In accordance with the 
current regulations, annual fees cannot increase or decrease by greater 
than 5 percent. The intention of this regulatory cap had been to limit 
the magnitude of an annual fee adjustment.
    The current regulations provide for FGIS review and revision of 
fees annually (7 CFR 800.71(b)) to establish the tonnage fees (national 
and local) and supervision fees. The annual adjustment of fees is based 
on the operating reserve total at the end of the prior fiscal year. 
Fees are increased or decreased to maintain an operating reserve of 4.5 
months of operating expenses. Historically, the operating reserve 
balance remained higher than the 4.5-month target, so FGIS annually 
reduced fees by the maximum amount, 5 percent, in 2017 (81 FR 96339), 
2018 (83 FR 6451), and 2019 (84 FR 11926); and by 2 percent in 2020 (85 
FR 8536).
    However, at the close of FY 2020, FGIS was operating at a loss of 
$5 million and had an operating reserve balance below 4.5 months of 
operating expenses. In accordance with current regulations, FGIS 
increased fees by 5 percent in 2021 (86 FR 1475), 2022 (87 FR 920), and 
2023 (88 FR 18512). These annual fee increases were not sufficient to 
both cover operating costs and a maintain a sufficient operating 
reserve. Because of the limitations on the magnitude of the annual 
increase, 2023 fees were lower than those charged in 2016 (e.g., the 
contract regular hourly rate in 2016 was $40.20 and, in 2023, the rate 
was $39.20). A drop in export tonnage (and its associated revenue) 
further increased the FGIS deficit. Table

[[Page 48258]]

1 below illustrates the interplay between FGIS revenues, reserve 
balances, and export tonnage over the previous 5 years.

    Table 1--FGIS Grain Inspection and Weighing Net Income and Operating Reserve for the Last 5 Fiscal Years
----------------------------------------------------------------------------------------------------------------
                                                                                                  Annual export
                                           Operating net   Operating reserve  Operating reserve      tons (in
               Fiscal year                 (in millions)      balance (in        balance (in      million metric
                                                               millions)           months)          tons) \1\
----------------------------------------------------------------------------------------------------------------
2019....................................             ($6)              $15.5                  5              108
2020....................................            (5.5)                 10                  3              110
2021....................................              (3)                  7                2.5              137
2022....................................              (4)                  3                  1              124
2023....................................            (3.5)              (0.5)              (0.3)               97
----------------------------------------------------------------------------------------------------------------
\1\ The data in this column represent export grain officially inspected and/or weighed (excluding land carrier
  shipments to Canada and Mexico inspected or weighed by delegated States and designated agencies), and outbound
  grain officially inspected and/or weighed by FGIS.

    Since 2021, the expected revenue from user fees has been lower than 
the Service anticipated. Since 2021, the export volume (on which FGIS 
assesses tonnage fees) has declined year-over-year: by 10 percent in 
2022, 22 percent in 2023, and 10 percent year-to-date in 2024. Reduced 
export volume has also impacted FGIS' ability to reestablish a 
sufficient operating reserve. This decline has been, in part, impacted 
by natural disasters. Though export volumes vary depending on weather, 
prices, and global demand, export volumes had risen in consecutive 
years since 2018. This significant decline was not expected, and the 
hurricane and severe drought were major unexpected events that 
contributed to the sudden decline in export volume.
    In August 2021, Hurricane Ida struck the coast of Louisiana just 
prior to the high-volume harvest season. The lower Mississippi River 
handles over half of U.S. grain exports, and many of the major grain 
exporters sustained damage and could not return to normal operations 
for months. Grain export inspection volume declined year-over-year by 
10 percent in 2022, and corresponding FGIS user fee revenue dropped by 
$3 million in FY 2022.
    Then, in 2022, a severe drought struck the midwestern U.S., and 
parts of the Mississippi River, which handles the barge traffic to feed 
the nation's largest export market, sunk to the lowest levels in 
recorded history, dating back 143 years. Those record-low river levels 
hindered barge and vessel loading operations, and export volumes 
declined by another 22 percent year-over-year from 2022 to 2023. FGIS 
experienced another $3.5 million reduction in revenue for the same 
period. In the two years following the hurricane and drought, FGIS 
revenue was down a combined $6.5 million. Agency operating costs were 
also significantly impacted by the COVID-19 Pandemic, as well as 
information technology and cost-of-living expenses increases.
    While the above discussed conditions individually presented 
significant challenges, their unprecedented, cumulative effect over a 
short time span limited FGIS's ability to recover its costs and 
contributed to the depletion of FGIS's reserves, jeopardizing its 
current ability to sustain and provide inspection and weighing 
services.

2023 Periodic Review

    Under the current regulations, FGIS can review all fees to ``. . . 
ensure they reflect the true cost of providing and supervising official 
service.'' (7 CFR 800.71(c)) Given the confluence of events outside the 
agency's control, FGIS performed a periodic review in 2023 that 
examined the costs of all services offered. The review disclosed that 
most FGIS fees were misaligned with their actual costs and the current 
regulatory fee formula did not account for all agency costs. This 
misalignment and failure to account for actual costs has contributed to 
the current financial situation. The operating reserves for grain 
inspection and weighing activities at the end of FY 2023 were $0. With 
higher costs and lower export volume, FGIS faces a widening deficit for 
FY 2024, estimated to be approximately ($9 million), unless it makes 
immediate fee adjustments. In addition to the need for an immediate fee 
adjustment, the agency also determined that the current fees do not 
fully account for the agency's operating expenses. Without an immediate 
increase in fees to reflect the true cost of providing and supervising 
official services, FGIS must cease operations and will not be able to 
provide mandatory inspection and weighing services for the grain 
industry. In 2023, FGIS presented potential fee scenarios at public 
meetings and received stakeholder feedback that official services are 
necessary and add value to U.S. grain commodities. Stakeholders 
cautioned against large swings in the fees. They also acknowledged that 
FGIS has a responsibility to carry out inspection and weighing services 
and maintain appropriate reserves to sustain operations.
    In addition to conducting the 2023 Periodic Review, FGIS has also 
implemented cost-saving measures to mitigate losses where possible. In 
FY24, the agency has frozen hiring of inspection and weighing staff, 
reduced travel to ``mission-critical only,'' reduced overtime at 
elevator locations, frozen employee awards, and reassigned 
underutilized staff to other field offices. These measures are 
appropriate and necessary but will be insufficient to correct the 
financial deficit and rebuild the operating reserve.

New Fee Calculation

    The new fees are based on the actual costs FGIS incurs in providing 
official services and the need to re-establish an operating reserve. 
The existing FGIS tonnage formula only accounts for fees assessed on 
grain tonnage and supervision of official agencies (Sec.  800.71(b)(1) 
and (2)); it excludes direct service costs and unit fees. In contrast, 
the new fees account for these costs.

Formulas for the Regular Rate, Overtime Rate, and Holiday Rate

    FGIS utilized the formulas described below to calculate the revised 
fees announced in this interim rule. Salaries, hours, and most rates 
used in the formulas are based on the prior fiscal year's obligations 
and hours of service. Some rates, such as those for equipment use and 
specialist laboratory services, are based on unique cost components 
that are not accounted for in the prior fiscal year's obligations and 
service

[[Page 48259]]

hours. FGIS has rounded the final rates to the nearest $0.10. 
Currently, some fees are charged on a per unit basis and others are 
charged on a per hour basis. FGIS will continue to provide costs based 
on a per hour and per unit basis to maintain consistency.
    The formulas used to determine hourly rates are as follows:
    Regular rate--The total direct pay of FGIS personnel performing 
grading, weighing, laboratory services, and equipment testing divided 
by the total 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 will be added to the cost 
of providing the service through the operating rate or the travel will 
be billed separately. An example of the calculation will look like 
this: [Total direct pay divided by total direct hours ($2,663,407/
82,985) = $32.10, multiplied by 1.7% (cost-of-living increase) = 
$32.64, + $10.04 (benefits rate) + $28.90 (operating rate) + $0.01 (bad 
debt allowance rate) = $71.59 (rounded to $71.60); rounding is done to 
the nearest $0.10.]
    Overtime Rate--The total direct pay of FGIS personnel performing 
grading, weighing, laboratory services, and equipment testing divided 
by the total 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 the allowance for bad 
debt rate. If applicable, travel expenses will be added to the cost of 
providing the service through the operating rate or the travel will be 
billed separately. An example of the calculation will look like this: 
[Total direct pay divided by total direct hours ($2,663,407/82,985) = 
$32.10, multiplied by 1.7% (cost-of-living increase) = $32.64, 
multiplied by 1.5 (overtime rate) = $48.96 + $10.04 (benefits rate) + 
28.90 (operating rate) + $0.01 (bad debt allowance rate) = $87.91 
(rounded to $87.90); rounding is done to the nearest $0.10.]
    Holiday Rate--The total direct pay of FGIS personnel performing 
grading, weighing, laboratory services, and equipment testing divided 
by the total 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 the allowance for bad 
debt rate. If applicable, travel expenses will be added to the cost of 
providing the service through the operating rate or the travel will be 
billed separately. An example of the calculation will look like this: 
[Total direct pay divided by total direct hours ($2,663,407/82,985) = 
$32.10, multiplied by 1.7% (cost-of-living increase) = $32.64, 
multiplied by 2 (double time or Holiday rate) = $65.28, + $10.04 
(benefits rate) + $28.90 (operating rate) + $0.01 (bad debt allowance 
rate) = $104.23 (rounded to $104.20); rounding is done to the nearest 
$0.10.]
    Formula calculations are based on the prior fiscal year's actual 
costs or historical costs, workload data, projection of expenses 
impacting program costs, cost-of-living increases, and inflation. Cost-
of-living increases and inflation factors are based on the economic 
assumptions from the Office of Management and Budget (OMB). Rather than 
codify a reference to an OMB budget document in this rule, each year 
AMS intends to use the most recent economic factors released by OMB for 
budget development purposes to determine cost impacts for these user 
fee activities.

Formulas for the Benefits Rate, Operating Rate, and Allowance for Bad 
Debt Rate

    FGIS derived the components of the formulas above using the 
previous fiscal year's actual costs, as follows:
    Benefits rate--The total direct benefits costs of FGIS personnel 
performing grading, weighing, laboratory services, and equipment 
testing divided by the total hours worked (regular, overtime, and 
holiday), which is then multiplied by the next calendar year's 
percentage cost-of-living increase. An example of the calculation will 
look like this: [Total direct benefits costs/(total regular hours + 
total overtime hours + total holiday hours) ($819,207/82,985)] = $9.87, 
multiplied by 1.7% (Cost of Living) = $10.04.]
    Operating Rate--The total operating costs (including user fee 
adjustment) of FGIS personnel performing grading, weighing, laboratory 
services, and equipment testing divided by total hours worked (regular, 
overtime, and holiday), which is then multiplied by the percentage of 
inflation. The Operating Rate will include the adjustment for user fee 
reserve as an Operating Cost. For the purposes of this example, FGIS 
will call out the reserve adjustment separately. This example will 
assume $1,000,000 is needed for the reserve and assume all other 
operating costs are $42,000,000, divided by 630,000 total hours. An 
example of the calculation will look like this: [Total operating costs/
(total regular hours + total overtime hours + total holiday hours 
(($42,000,000 + 1,000,000)/630,000)] = $69.61, multiplied by 2% 
(inflation) = $69.62.]
    Allowance for Bad Debt Rate--Total bad debt for grading, weighing, 
laboratory services, and equipment testing divided by total hours 
worked (regular, overtime, and holiday). An example of the calculation 
will look like this: [Total bad debt cost/(total regular hours + total 
overtime hours + total holiday hours) ($1,000/82,985) = $ 0.01.]
    As noted above, the formulas reflect that the cost of providing 
services includes both direct and indirect costs. Direct costs include 
the cost of salaries, employee benefits, and if applicable, travel and 
some operating costs. Indirect costs include the cost of program and 
AMS activities supporting the services provided to the industry and are 
not covered by FGIS tonnage fees. For purposes of these formulas, 
indirect costs have been included as part of operating costs.

Revised Fees for 2024

    Tables 2-4 below set forth the revised fees for FGIS inspection and 
weighing services effective July 8, 2024, and until a final rule is 
issued. Fees were revised following the periodic review prescribed in 
the regulations to ensure cost recovery for official services performed 
by FGIS (specifically that revenue meets obligations for FY 2024) and 
rebuilding of the mandatory operating reserve.

[[Page 48260]]

    FGIS calculated the hourly rates in the tables below by applying 
the formulas identified in the preceding sections to data for FY 2023 
obligations and hours. The hourly rates also account for a 5.2 percent 
cost-of-living increase and inflation. However, the tables below do not 
implement the full fee increases that would otherwise result from 
application of the formulas. Without an adjustment, the formulas would 
result in a 111 percent increase in most fees. FGIS has adjusted the 
rates downwards by approximately 20 percent to establish more 
reasonable fees that also cover the costs of providing official 
inspection services for the remainder for FY 2024, and until such time 
as a final rule is issued. Accordingly, FY 2024 fees for official grain 
inspection and weighing services provided under the USGSA in the United 
States and Canada \1\ are as follows:
---------------------------------------------------------------------------

    \1\ Canada fees include the noncontract hourly rate, the Toledo 
field office tonnage fee, and the actual cost of travel.

     Table 2--Fee Table 1--Fees for Official Services Performed at an Applicant's Facility in an Onsite FGIS
                                                 Laboratory \1\
----------------------------------------------------------------------------------------------------------------
                                                                            Night
                                                        Regular rate     differential     Overtime      Holiday
                       Service                         Monday-Friday    Monday-Friday    rate Sunday     rate
                                                      (6 a.m.-6 p.m.)  (6 p.m.-6 a.m.)  and Saturday
----------------------------------------------------------------------------------------------------------------
Inspection and Weighing Services Hourly Fees (per
 service representative):
    One-Year Contract (per hour per Service                    $65.00           $71.50        $81.30      $97.50
     representative):...............................
    Noncontract (per hour per Service                           93.30  ...............        116.60      140.00
     representative):...............................
----------------------------------------------------------------------------------------------------------------
Service                                                                                                2024 Rate
----------------------------------------------------------------------------------------------------------------
Additional Tests (cost per test, assessed in addition to the hourly rate): \2\
    Aflatoxin (rapid test kit method)...............................................................      $17.90
    All other Mycotoxins (rapid test kit method)....................................................       32.60
    NIR or NMR Analysis (protein, oil, starch, etc.)................................................        4.30
    Waxy corn (per test)............................................................................        4.30
    Class Y Weighing--online (per carrier)..........................................................        2.80
    Fees for other tests not listed above will be based on the noncontract hourly rate from Fee       ..........
     Table 1 (per hour/per representative)..........................................................
----------------------------------------------------------------------------------------------------------------
Tonnage Fee (assessed in addition to all other applicable fees, only one tonnage fee will be assessed when
 inspection and weighing services are performed on the same carrier):
----------------------------------------------------------------------------------------------------------------
All outbound carriers serviced by the specific field office (per-metric ton): \3\
    Delegated States/Designated Agencies (national $0.057) \4\......................................      $0.057
    League City tonnage fee (local $0.080 plus national $0.057).....................................       0.137
    New Orleans tonnage fee (local $0.012 plus national $0.057).....................................       0.069
    Pacific Northwest tonnage fee (local $0.135 plus national $0.057)...............................       0.192
    Toledo tonnage fee (local $0.154 plus national $0.057)..........................................       0.211
----------------------------------------------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, re-inspection, and appeal inspection service and include,
  but are not limited to, sampling, grading, weighing, prior to loading stowage examinations, and certifying
  results performed within 25 miles of an employee's assigned duty station. Travel and related expenses will be
  charged for service outside 25 miles as found in Sec.   800.72(a).
\2\ Appeal and re-inspection services will be assessed the same fee as the original inspection service.
\3\ Standard carrier capacity for trucks/submitted samples--52,800 lbs. (approx. 23.95 metric tons (mt)),
  container--54,000 lbs. (approx. 24.49 mt), rail--220,000 lbs. (approx. 99.79 mt), barge--3,648,000 lbs.
  (approx. 1,654.70 mt), Pacific Northwest (PN) barge--6,707,000 lbs. (approx. 3,042.24 mt).
\4\ Tonnage fee is assessed on export grain inspected and/or weighed, excluding land carrier shipments to Canada
  and Mexico.


  Table 3--Fee Table 2--Services Performed at Other Than an Applicant's
                 Facility in an FGIS Laboratory \1\ \2\
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Original Inspection and Weighing (Class X) Services:
    Sampling only (use hourly rates from Fee Table 1)...
------------------------------------------------------------------------
Service                                                        2024 Rate
------------------------------------------------------------------------
Stationary Lots (sampling, grade/factor, and
 checkloading):
    Truck/trailer/container (per carrier)...............          $35.00
    Railcar (per carrier)...............................           51.90
    Sacked grain (per hour per service representative          0.125/CWT
     plus an administrative fee per hundred weight).....
Lots sampled online during loading (sampling use hourly
 rates from Fee Table 1, plus):
    Truck/trailer/container (per carrier)...............           21.30
    Railcar (per carrier)...............................           43.90
    Sacked grain (per hour per service representative          0.125/CWT
     plus an administrative fee per hundred weight).....
Other services:
    Submitted sample (per sample--grade and factor).....           21.30
    Factor only (per factor--maximum 2 factors).........           10.40
    Class X Weighing will be based on the noncontract     ..............
     hourly rate from Fee Table 1 (per hour/per service
     representative)....................................
Additional tests (excludes sampling):
    Aflatoxin (rapid test kit method)...................           52.50
    All other Mycotoxins (rapid test kit method)........           67.60

[[Page 48261]]

 
    Fecal Matter Assay--Detection of Fecal Matter                 326.55
     (Qualitative)......................................
    NIR or NMR Analysis (protein, oil, starch, etc.)....           17.90
    Test Kit Evaluation (Monday-Friday).................          111.70
    Tilletia controversa K[uuml]hn (TCK) spores testing           326.55
     (per sample).......................................
    Waxy Corn (per test)................................           17.90
    Fees for other tests not listed above will be based   ..............
     on the noncontract hourly rate from Fee Table1.....
Pesticide Residue Testing:
    Routine Compounds (per hour per service                       376.50
     representative)....................................
    Non-routine Compounds (Subject to availability) (per          200.90
     hour per service representative)...................
Original Inspection and Weighing (Class X) Services:
    Appeal inspection and review of weighing service \3\
    Sampling service for Appeals additional (hourly
     rates from Fee Table 1)............................
    Board appeal and Appeals (grade and factor).........          142.70
    Factor only (per factor--max 2 factors) \4\.........           75.10
Additional tests (assessed in addition to all other
 applicable tests):
    Aflatoxin (rapid test kit method)...................           52.50
    All other Mycotoxins (rapid test kit method)........           82.20
    Mycotoxin (per test--HPLC)..........................          245.60
    NIR or NMR Analysis (protein, oil, starch, etc.)....           31.10
    Sunflower oil (per test)............................           31.10
    Fees for other tests not listed above will be based   ..............
     on the noncontract hourly rate from Fee Table 1....
Stowage examination (service on request):
    Ship (per stowage space) (minimum 5 spaces per ship)           89.00
    Subsequent ship examinations (same as original)                89.00
     (minimum 3 spaces per ship)........................
    Barge (per examination).............................           71.30
    All other carriers (per examination)................           28.20
------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, re-inspection, and
  appeal inspection service and include, but are not limited to,
  sampling, grading, weighing, prior to loading stowage examinations,
  and certifying results performed within 25 miles of an employee's
  assigned duty station. Travel and related expenses will be charged for
  service outside 25 miles as found in Sec.   800.72(a).
\2\ In addition to a 2-hour minimum charge on Saturday, Sunday, and
  holidays, an additional charge will be assessed when the revenue from
  the services in Fee Table 2, does not equal or exceed what would have
  been collected at the applicable hourly rate.
\3\ If, at the request of the Service, a file sample is located and
  forwarded by the Agency, the Agency may, upon request, be reimbursed
  at the rate of $3.50 per sample by the Service. (Invoice processed
  through appropriate payment method.)
\4\ Factor only appeal--In accordance with 800.135(b) Kind and Scope, an
  appeal inspection is limited to the kind and scope of the original or
  re-inspection service; in the case of factor-only inspections, the
  service is limited to a maximum of two factors with no grade
  assignment.


              Table 4--Fee Table 3--Miscellaneous Services
------------------------------------------------------------------------
                         Service                             2024 Rate
------------------------------------------------------------------------
Grain grading seminars (per hour per service                     $111.70
 representative) \1\....................................
Samples provided to interested parties (per sample).....            5.20
Extra copies of certificates and divided lots (per                  3.50
 certificate)...........................................
Special mailing (actual cost)...........................     Actual cost
Travel (mileage, airfare, per diem, etc.)...............     Actual cost
Preparing certificates onsite or during other than        ..............
 normal business hours (use hourly rates from Table 2.).
Special Weighing Services (per hour per service
 representative): \10\
    Scale testing and certification.....................          145.20
    Evaluation of weighing and material handling systems          145.20
    NTEP prototype evaluation (other than Railroad Track          145.20
     Scales)............................................
    NTEP prototype evaluation of Railroad Track Scales..          145.20
    Use of FGIS railroad track scale test equipment per           870.70
     facility for each requested service................
    Mass standards calibration and re-verification......          145.20
    Special [weighing] projects.........................          145.20
------------------------------------------------------------------------
\1\ Regular business hours--Monday through Friday--service provided at
  other than regular business hours will be charged at 1\1/2\ times the
  applicable hourly rate (see Sec.   800.0(b)(14) for definition of
  ``business day.'')

Regulatory Changes

    This interim rule adds a new section (Sec.  800.74) to the 
regulations to implement the revised fees set forth above. Because the 
current user fee regulation at 7 CFR 800.71 does not permit fee 
increases greater than 5 percent, this interim rule also imposes a 
temporary stay on Sec.  800.71. A temporary stay is also placed on 
Sec.  800.72(b), as the additional charge provided therein is 
incorporated into Fee Table 2, footnote 2, above. To accommodate the 
stay imposed on Sec. Sec.  800.71 and 800.72(b) and the addition of new 
Sec.  800.74, conforming changes are made where Sec. Sec.  800.71 or 
800.72 are otherwise referenced in 7 CFR part 800, including in the 
following sections: 800.34, 800.36, 800.73, 800.156(d)(5), and 
800.197(b)(3).

Good Cause Analysis

Impact to Industry

    Without an immediate fee increase, FGIS will not be able to 
continue providing official inspection and weighing services. While 
there will be financial impacts to the agency and its

[[Page 48262]]

operations if fees are not immediately increased, the impact of FGIS 
failing to provide basic services will have far-reaching and 
unprecedented impacts on the industry, including an unprecedented 
national disruption of grain exports. In the past, isolated, regional, 
and time-limited disruptions in the provision of official inspection 
and weighing services have had major ramifications for the industry. 
Likewise, failing to operate and provide official inspection and 
weighing could lead to unsustainable uncertainty and cost that may far 
exceed impacts of past isolated, regional, and time-limited 
disruptions.
    FGIS inspects or weighs, on average, approximately $137 million 
worth of grain commodities every day, averaging $54 billion annually. 
The USGSA requires that nearly all grain exports be inspected and 
weighed by FGIS prior to export. FGIS provides these services mostly on 
bulk grain vessels loaded at ports throughout the U.S., with activities 
concentrated in the lower Mississippi River, Texas Gulf, Pacific 
Northwest, and Great Lakes regions. Each vessel can carry from 500,000 
to 2,000,000 or more bushels of grain (12,500 to 50,000 metric tons), 
which represents between 500 and 2,000 truckloads of grain brought to 
market by producers, totaling millions of dollars on each vessel. The 
grade and condition of the commodity can greatly impact the value and 
end use functionality, so FGIS performs independent grading in 
accordance with a contract specific to each vessel. These contracts 
describe the grades and factors necessary to fulfill the requirements 
agreed to by buyer and seller. As an unbiased and trusted third party, 
FGIS grades and weights are respected around the world and facilitate 
trade through near-universal understanding and acceptance. Without such 
acceptance, some countries could require inbound quality inspections 
which could delay and introduce variables to the acceptance of U.S. 
grain shipments.
    Since nearly every export shipment is subject to mandatory FGIS 
inspection and weighing, the results of those FGIS grade requirements 
(e.g., U.S. No. 2 or better Yellow corn per FGIS standards) are 
typically written into the contract terms for final settlement. If FGIS 
can no longer provide those services, the shippers would not be able to 
meet their current contractual obligations. This could lead to the 
cancellation of contracts or modification of contracts to accept some 
other terms for grading. If alternative grading is used, inspections 
would be conducted by unlicensed and potentially untrained graders who 
may or may not have a relationship or financial interest with the 
shipping or receiving company. In contrast, every FGIS inspector must 
be trained, licensed, and free of conflicts of interest. The 
inspections are supported by an appeals system and national monitoring 
program to ensure alignment across the country. Without such support, 
the U.S. grain industry could be subject to foreign buyer concerns 
about quality and have no mechanism, such as an FGIS appeals or formal 
complaint system, to address such concerns expressed against U.S. grain 
shipments. Without such a system in place, global acceptance of U.S. 
grain exports could be placed at higher risk. FGIS plays a vital role 
in the global grain industry.
    Nearly every grain export shipment would be impacted in some way if 
FGIS ceases operations, with immediate impacts upstream to handlers and 
producers. U.S. grain will immediately become less competitive as U.S. 
companies pay demurrage charges on vessels, barges, and railcars, which 
could amount to many thousands of dollars per hour; and these 
inefficiencies could result in lower prices ultimately paid to farmers. 
For example, when exports were hindered due to Hurricane Ida in 2021, 
vessels could not load, barge traffic halted, and corn and soybean 
prices unexpectedly sunk to their lowest levels in five weeks. This 
event was severe and directly impacted only one geographic area of the 
export chain, yet it had rippling effects throughout the grain supply 
chain. In contrast, if FGIS ceases operations entirely, the whole grain 
export marketing chain would be impacted and could prompt significant 
market volatility.
    If the cessation of operations causes delays at export points, 
barges and trains will be delayed, grain elevators will fill, and the 
orderly U.S. grain handling system will quickly congest. Farmers may 
not be able to bring their crops to market during harvest, causing 
farmers to go unpaid for ready-for-delivery crops, and harvested grain 
could be subject to damage and discounts due to improper storage. As an 
example, during an inspection disruption at an elevator in Washington 
in 2014, export capacity was reduced by 86 percent, delaying hundreds 
of thousands of tons of U.S. grain shipments. The elevator quickly 
filled up with inbound grain from farmers, but without the normal 
export outlets, had to stop taking inbound grain. A major rail line 
stopped servicing the elevator, and farmers could not bring their grain 
to market during harvest. This caused significant harm to those 
handlers, farmers, and the public, as hundreds of millions of dollars 
in grain shipments were delayed. Such bottlenecks further impact 
farmers as the grain can become damaged as it sits in fields or farm 
storage waiting for normal export channels to reopen.
    FGIS also oversees a network of private and public organizations, 
called Official Agencies, which provide inspection and weighing 
services on FGIS' behalf, primarily at interior locations. These 
Official Agencies inspect or weigh over 200 million metric tons of 
grain annually. While there are some appropriations dedicated to 
monitoring compliance of those operations, the daily oversight and 
interaction is funded through a user fee. If FGIS ceases operations, 
those activities would cease. Lack of oversight of domestic inspection 
would threaten an important component of the grain inspection system. 
When information asymmetries exist between buyers and sellers about 
grain quality, domestic inspection provides an unbiased assessment to 
all parties about protein content, damaged kernels, foreign material, 
and other quality factors related to the product's market value to 
ensure fair and efficient marketing of U.S. grains. Further, lack of 
oversight means farmers or handlers could be unnecessarily discounted, 
as the user-fee supported Federal appeals program would cease.

Impact to Government

    In addition to the mandatory grain inspection and weighing services 
FGIS provides under the USGSA, FGIS provides several other services to 
facilitate the marketing of grain and related products. If FGIS cannot 
sustain operations, it would not be able to provide additionally 
important services, including perform phytosanitary inspection services 
on behalf of the Animal and Plant Health Inspection Service (APHIS); 
report hazardous shipments to the Food and Drug Administration (FDA); 
or conduct tests of railroad scales used in commerce.
    Many export shipments require a phytosanitary certificate to meet 
the importing countries' phytosanitary requirements. FGIS, through a 
memorandum of understanding with APHIS, conducts many of these 
inspections concurrently with the quality grading. This efficiency 
allows the United States Department of Agriculture (USDA) to perform 
two examinations at once. If FGIS can no longer provide this service, 
customers could encounter delays and taxpayers could see higher costs 
as APHIS could have to provide these services

[[Page 48263]]

unexpectedly and without sufficient staff.
    During the occurrence of its official inspection services, if FGIS 
encounters a condition that could be hazardous to human or animal 
health, FGIS reports those findings to FDA. Those actionable conditions 
include insect infestation, a carcinogenic toxin called aflatoxin, 
unusual odors or additives in grain, and other conditions unsuitable 
for consumption. Similar to the relationship with APHIS, FGIS conducts 
these inspections concurrently and efficiently with the grain quality 
inspection. If FGIS can no longer operate, FDA will have to draw from 
taxpayer resources to fulfill these inspections, or if these inspection 
activities could go unfulfilled, it could expose the public to 
hazardous conditions that would have otherwise been identified by FGIS.
    FGIS maintains an optional, user-fee supported program to test 
railroad track scales to various industries, including grain handlers. 
These tests ensure confidence in the scales used to weigh of 
commodities loaded in railcars transported on the Nation's rail system. 
If FGIS is unable to provide those services, the certification of 
railroad scales could be delayed, reducing confidence and exposing the 
rail infrastructure to risk of handing overweight freight. This service 
would need to be otherwise absorbed by another organization such as the 
National Institute of Science and Technology, which would involve 
careful planning and sufficient transition time.

Statutory Compliance

    This action also seeks to ensure compliance with the USGSA, which 
requires FGIS to charge fees sufficient to cover the costs of the 
official inspection and weighing services it provides, and to adjust 
fees annually to maintain an operating reserve of not less than 3 and 
not more than 6 months. The Service is committed to issuing the final 
rule expeditiously after reviewing public comments and obtaining 
additional information.
    At current rates, FGIS does not charge sufficient fees to meet 
obligations, and has incurred significant losses in the current 2024 
fiscal year. FGIS must immediately increase fees to ensure that revenue 
meets obligations for the 2024 fiscal year. Otherwise FGIS will default 
and must cease operations.
    The USGSA requires the Secretary to charge and collect reasonable 
fees to cover the estimated costs for performing official grain 
inspection and weighing services (which are mandatory under the Act for 
U.S. grain exports). The Act also requires the maintenance of an 
operating reserve balance of three-to-six months (i.e., approximately 
$9M to $17M). At present, FGIS is non-compliant with the requirements 
of the USGSA, in both instances; and, upon good cause, AMS has 
determined that it must immediately adjust grain inspection and 
weighing fees to maintain mandatory services and the orderly marketing 
of grain for the U.S. grain export industry, which is valued at over 
$54 billion annually. This interim final rule announces the 2024 rates 
to be charged for the remainder of the fiscal year, and until such time 
as a final rule is issued.
    Pursuant to 5 U.S.C. 553, it is found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting the revised fees 
for FY 2024 into effect because further delay will result in 
significant, negative supply chain impacts throughout the entire U.S. 
grain industry.

Alternatives Considered

    The USGSA allows for the required official inspection of grain to 
be exported out of the United States to be waived in emergency and 
other circumstances that would not impair the objectives of the Act. 
Waivers have been used in limited instances, such as in the aftermath 
of Hurricane Ida in 2021, but do not present a feasible option for FGIS 
to address the current budgetary shortfall. A waiver from FGIS allows 
for shipment of grain without official inspection. If parties have 
contracted for USDA inspected grain, both parties must agree to accept 
the uninspected grain if a waiver has been issued. Widespread shipment 
of uninspected grain could raise skepticism about the quality of U.S. 
grain. This could have widespread and long-term unintended consequences 
for the U.S. grain industry both domestically and internationally.
    In 2014, when a single grain elevator, in the State of Washington, 
could not receive Federal grain inspection services for a month, 
exporters had to request, in accordance with the USGSA and implementing 
regulations at 7 CFR 800.18, emergency grain inspection and weighing 
waivers from the Secretary to export grain. These waivers allowed 
exporters to ship some of their grain but not all. Loading capacity was 
reduced by 83 percent, causing rail lines to stop deliveries to the 
elevator and halting producer grain shipments at interior locations. 
The issuance of waivers can also result in unintended negative effects 
for the industry as customers abroad may reject the product for failing 
to meet contractual requirements (i.e., a particular USDA grade). 
Therefore, the utilization of waivers has been limited to short term, 
regional issues that were remedied within a reasonable timeframe.
    Without adjusting hourly and unit-based fees, FGIS anticipates a 
deficit in its FY 2024 operating reserves of nearly $9M. With such a 
shortfall, FGIS will not have sufficient revenue to meet obligations 
and will cease operations. U.S. grain exports would be disrupted for 
the over $54 billion grain export industry. Factors that have 
contributed to this potential imminent harm to the public include: (1) 
an eight-year period of low fees (i.e., 2024 fees, $39.20/hour, are 
lower than 2016 fees, $40.20/hour); (2) regulatory provisions that 
limit annual fee increases and do not fully account for the actual cost 
of services provided; (3) inflation; (4) cost-of-living adjustments for 
the Federal workforce; (5) increased service delivery costs driven by 
unprecedented weather events (e.g., Hurricane Ida and droughts); (6) 
declining global demand for grain; and (7) an increased volume of U.S. 
grain being distributed to domestic processing plants (which excludes 
them from mandatory inspection and weighing under the USGSA).
    While the above conditions individually presented significant 
challenges, their unprecedented confluence, with other circumstances, 
over a short span presents a situation where FGIS must immediately take 
action to maintain operations and compliance with the USGSA.
    For the reasons stated above, AMS finds that good cause exists for 
this interim rule to be effective 30 days after publication in the 
Federal Register.
Severability
    The Department believes that each component of the rule is legally 
supportable, individually and in the aggregate. To the extent a court 
may enjoin any part of the rule, the Department intends that other 
provisions or parts of provisions should remain in effect. The stay of 
the current regulations is severable from the establishment of the 
revised 2024 fees.

Required Regulatory Analyses

Executive Orders 12866, 13563, and 14094 and the Regulatory Flexibility 
Act

    The Office of Management and Budget has designated this rulemaking 
as not significant under Executive Order 12866, ``Regulatory Planning 
and Review,'' Executive Order 13563,

[[Page 48264]]

``Improving Regulation and Regulation Review,'' and Executive Order 
14094, ``Modernizing Regulatory Review.'' Since grain export volume can 
vary significantly from year to year, estimating the impact in any 
future fee changes can be difficult. FGIS recognizes the need to 
provide predictability to the industry for inspection and weighing 
fees. The statutory requirement to also maintain an operating reserve 
between 3 to 6 months of operating expenses ensures that FGIS can 
adequately cover its costs without imposing an undue burden on its 
customers.
    Currently, FGIS regularly reviews its user-fee financed programs to 
determine if the fees charged for performing official inspection and 
weighing services adequately cover the cost of providing those 
services. Due to the limitations in the current regulations, combined 
with four years of rate decreases, and noneconomic factors that led to 
the 2020-2023 period having the highest inflation in more than 40 
years,\2\ FGIS is now experiencing a deficit which is forecasted to 
grow without corrective action.
---------------------------------------------------------------------------

    \2\ For example, the Consumer Price Index (CPI) Calculator 
(https://data.bls.gov/cgi-bin/cpicalc.pl) shows prices up 20 percent 
between January 2020 and February 2024, and up 31 percent between 
January 2016 and February 2024.
---------------------------------------------------------------------------

    This interim rule revises fees for official grain inspection and 
weighing services provided by FGIS to ensure stability of the program. 
FGIS will continue to seek out cost-saving measures and implement 
appropriate changes to reduce its costs to provide alternatives to fee 
increases.
    USDA is issuing this interim rule in conformance with Executive 
Orders 12866, 13563, and 14094. 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. Executive Order 14094 reaffirms, 
supplements, and updates Executive Order 12866 and further directs 
agencies to solicit and consider input from a wide range of affected 
and interested parties through a variety of means.
    The revised fees set forth in this interim rule are necessary to 
ensure FGIS's continued operations and avoid significant disruptions to 
the private grain industry. The industry is familiar with the annual 
process for evaluating and updating fees and anticipates the changes in 
this interim rule. Additional costs to FGIS customers related to this 
interim final rule will allow FGIS to continue providing mandatory and 
voluntary grain inspection services that facilitate international and 
domestic trade.
    This rulemaking is unlikely to have an annual effect of $200 
million or more or adversely affect the economy. The changes to the 
FGIS fees in this rulemaking are a response to a projected deficit for 
FY 2024 of nearly $9 million. The interim rule would address the 
deficit with revised fees that are reflective of the costs to provide 
the services and will help prevent the deficits from widening in the 
future. This interim rule does not meet the criteria of a significant 
regulatory action under Executive Order 12866 as updated by Executive 
Order 14094. Therefore, the OMB has not reviewed this interim rule 
under those orders.
    A 30-day comment period is provided to allow interested parties to 
submit written comments on this interim rule.
    Under the requirements set forth in the Regulatory Flexibility Act 
(RFA) (5 U.S.C. 601-12), FGIS has considered the economic impact of 
this rulemaking on small entities. The purpose of the Regulatory 
Flexibility Act is to fit regulatory actions to the scale of businesses 
subject to such actions. This ensures that small businesses will not be 
unduly or disproportionately burdened. FGIS is issuing this rulemaking 
to ensure continuity of mandatory services and ensure compliance with 
the USGSA.
    The Small Business Administration (SBA) defines small businesses by 
their North American Industry Classification System Codes (NAICS). This 
rulemaking affects customers of FGIS's official inspection and weighing 
services in the domestic and export grain markets (NAICS code 115114). 
Current guidance from the SBA provides a revenue cutoff at $34 million 
to differentiate large and small firms in this industry. Fees for the 
program which apply to this industry are provided on the FGIS website.
    Under the USGSA, all grain exported from the United States must be 
officially inspected and weighed, with few exceptions. FGIS provides 
mandatory inspection and weighing services at 29 export facilities in 
the United States. Five delegated State agencies provide mandatory 
inspection and weighing services at 20 facilities. All these facilities 
are owned by multinational corporations, large cooperatives, or public 
entities that do not meet the requirements for small entities 
established by the SBA. Further, the provisions of this rulemaking 
apply equally to all entities.
    The USGSA requires the registration of all persons engaged in the 
business of buying grain for sale in foreign commerce. In addition, 
those persons who handle, weigh, or transport grain for sale in foreign 
commerce must also register. The regulations found at 7 CFR 800.30 and 
800.31 define a foreign commerce grain business as the business of 
regularly buying for sale, handling, weighing, or transporting grain 
totaling 15,000 metric tons or more during the preceding or current 
calendar year. Currently, there are 174 businesses registered to export 
grain, most of which are not small businesses.
    Most users of the official inspection and weighing services meet 
the SBA requirements for small entities. Data on user fee receipts from 
the FGIS for the past 5 years, plus 2024 to date, show a total of 2,123 
different accounts over this time, though many firms are represented by 
multiple accounts. For the purposes of the Regulatory Flexibility 
Analysis, FGIS will consider accounts as representing establishments, 
with multiple establishments associated with larger firms.
    FGIS identified a total of 31 large firms, as defined by the SBA 
firm size classification of receipts in excess of $34 million. FGIS 
also identified the total number of establishments affiliated with the 
31 large firms to be 133. With a total number of establishments of 
2,123, this means 1,990, or 94 percent, of the establishments that paid 
fees to FGIS over the 2019-2024 period are small businesses according 
to the SBA definition.
    Table 5 shows that, while 6 percent of the firms are considered 
large, in total they have contributed the vast majority of the fees 
paid to the program. In each of the five previous years, and for the 
year 2024 to date, the 31 large firms paid between 86 and 90 percent of 
all FGIS fees, with an average of 89 percent. The remaining 1,990 
establishments paid on average 11 percent of total fees.

[[Page 48265]]



Table 5--FGIS Billed Accounts Summary Table for Regulatory Flexibility Analysis by Small Business Administration
                                               Size Classification
----------------------------------------------------------------------------------------------------------------
                                              All firms            Large firms                 Small firms
                                          ----------------------------------------------------------------------
               Fiscal year                   Total fees                     Share paid                Share paid
                                                paid          Fees paid        (%)       Fees paid       (%)
----------------------------------------------------------------------------------------------------------------
2019.....................................     $32,314,848     $27,694,899           86   $4,619,949           14
2020.....................................      30,746,015      27,386,467           89    3,359,547           11
2021.....................................      34,320,110      30,693,195           89    3,626,915           11
2022.....................................      31,663,547      28,183,027           89    3,480,520           11
2023.....................................      27,734,760      25,069,234           90    2,665,526           10
Oct 2023-Feb 2024........................      10,702,712       9,679,943           90    1,022,769           10
                                          ----------------------------------------------------------------------
    Grand Total..........................     167,481,991     148,706,765           89   18,775,226           11
----------------------------------------------------------------------------------------------------------------

    The new fee structure will not change the relative burden of these 
fees on small businesses. These updated fees will benefit all 
inspection applicants, regardless of size, as fees will more closely 
reflect the current cost of inspections. Further, there are no 
additional reporting, record keeping, or other compliance requirements 
imposed upon small entities as a result of this rulemaking. FGIS has 
not identified any other Federal rules which may duplicate, overlap, or 
conflict with this rulemaking.

Executive Order 12988

    This interim rule has been reviewed under Executive Order 12988--
Civil Justice Reform. It is not intended to have retroactive effect. 
Section 18 of the USGSA (7 U.S.C. 87g) provides that no State or 
subdivision thereof may require or impose any requirements or 
restrictions concerning the inspection, weighing, or description of 
grain under the USGSA. Otherwise, this interim rule will not preempt 
any State or local laws, regulations, or policies unless they present 
an irreconcilable conflict with this rule. There are no administrative 
procedures that must be exhausted prior to any judicial challenge to 
the provisions of this interim rule.

Executive Order 13175

    This interim rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal governments, which 
requires agencies to consider whether their rulemaking actions would 
have Tribal implications. FGIS has determined this interim rule is 
unlikely to have substantial direct effects on one or more Indian 
Tribes, on the relationship between the Federal Government and Indian 
Tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian Tribes.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this 
interim rule does not meet the criteria set forth in 5 U.S.C. 804(2).

E-Government Act

    USDA is committed to complying with the provisions of the E-
Government Act (44 U.S.C. 3601 et seq.) by promoting 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.

Paperwork Reduction Act

    This interim rule does not impose any additional reporting or 
recordkeeping requirements on either small or large FGIS customers. In 
compliance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 
35), FGIS reports and forms are periodically reviewed to reduce 
information collection requirements and duplication.

List of Subjects in 7 CFR Part 800

    Administrative practice and procedure, Conflicts of interests, 
Exports, Freedom of information, Grains, Intergovernmental relations, 
Penalties, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service amends 7 CFR part 800 as follows:

PART 800--GENERAL REGULATIONS

0
1. The authority citation for part 800 continues to read as follows:

    Authority: 7 U.S.C. 71-87K, 1621-1627.


0
2. Amend Sec.  800.34 by revising the first sentence to read as 
follows:


Sec.  800.34   Registration fee.

    An applicant shall submit the registration fee prescribed in Sec.  
800.74 with the completed application. * * *

0
3. Amend Sec.  800.36 by revising the last sentence to read as follows:


Sec.  800.36  Certificates of registration.

    * * * The Service shall charge a fee, in accordance with Sec.  
800.74, for each additional copy of a certificate of registration 
requested by a registrant.


Sec.  800.71   [Stayed]

0
4. Stay Sec.  800.71 indefinitely.


Sec.  800.72  [Amended]

0
5. Stay Sec.  800.72(b) indefinitely.

0
6. Amend Sec.  800.73 by revising paragraph (d) to read as follows:


Sec.  800.73   Computation and payment of service fees; general fee 
information.

* * * * *
    (d) To whom fees are assessed. Fees for inspection, weighing, and 
related services performed by service representatives, including 
additional fees as provided in Sec. Sec.  800.72(a) and 800.74, shall 
be assessed to and paid by the applicant for the service.
* * * * *

0
7. Add Sec.  800.74 above the undesignated center heading ``Kinds of 
Official Services'' to read as follows:


Sec.  800.74  Fees for fiscal year 2024.

    The fees for fiscal year 2024 are established in the fee tables 
posted on the Service's public website.


Sec.  800.156   [Amended]

0
8. Amend Sec.  800.156, in paragraph (d)(5)(ii), by removing ``Sec.  
800.71'' and adding in its place ``Sec.  800.74''.

0
9. Amend Sec.  800.197 by revising paragraph (b)(3) to read as follows:


Sec.  800.197  Approval as a scale testing and certification 
organization.

* * * * *
    (b) * * *

[[Page 48266]]

    (3) Be accompanied by the fee prescribed in Sec.  800.74; and
* * * * *

Melissa Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-12400 Filed 6-5-24; 8:45 am]
BILLING CODE 3410-02-P