[Federal Register: October 5, 2005 (Volume 70, Number 192)]
[Proposed Rules]
[Page 58095-58100]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05oc05-23]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1260
[No. LS-01-06]
Amendment to the Beef Promotion and Research Rules and
Regulations
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would amend the Beef Promotion and Research
Order (Order) established under the Beef Promotion and Research Act of
1985 (Act) to reduce assessment levels for imported beef and beef
products based on revised determinations of live animal equivalencies
and to update and expand the Harmonized Tariff System numbers and
categories, which identify imported live cattle, beef, and beef
products to conform with recent updates in the numbers and categories
used by the U.S. Customs and Border Protection (USCBP).
DATES: Written comments regarding changes to this proposed rule must be
received by December 5, 2005.
ADDRESSES: Send any written comments to Kenneth R. Payne, Chief;
Marketing Programs Branch, Room 2638-S; Livestock and Seed Program;
Agricultural Marketing Service (AMS), USDA; STOP 0251; 1400
Independence Avenue, SW.; Washington, DC 20250-0251. Comments may be
sent by facsimile to 202/720-1125 and by electronic mail to
BeefComments@usda.gov or http://www.regulations.gov. State that your comments
refer to Docket No. LS-01-06. Comments received may be inspected at
this location between 8 a.m. and 4:30 p.m., Monday through Friday,
except holidays, or on the Internet at http://www.ams.usda.gov/lsg/mpb/rp-beef.htm
.
FOR FURTHER INFORMATION CONTACT: Kenneth R. Payne, Chief, Marketing
Programs Branch on 202/720-1115, fax 202/720-1125, or by e-mail at
Kenneth.Payne@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has waived the review
process required by Executive Order 12866 for this action.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have a retroactive
effect.
Section 11 of the Act provides that nothing in the Act may be
construed to preempt or supersede any other program relating to beef
promotion organized and operated under the laws of the United States or
any State. There are no administrative proceedings that must be
exhausted prior to any judicial challenge to the provisions of this
rule.
Regulatory Flexibility Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601 et seq.), the Administration has considered the
economic effect of this action on small entities and has determined
that this proposed rule will not have a significant economic impact on
a substantial number of small business entities. The effect of the
Order upon small entities was discussed in the July 18, 1986 Federal
Register [51 FR 26132]. The purpose of RFA is to fit regulatory actions
to the scale of businesses subject to such actions in order that small
businesses will not be unduly burdened.
There are approximately 270 importers who import beef or edible
beef products into the United States and 198 importers who import live
cattle into the United States. The majority of these operations subject
to the Order are considered small businesses under the criteria
established by the Small Business Administration (SBA) [13 CFR
121.201]. SBA defines small agricultural businesses as those with
annual receipts of less than $5 million.
The proposed rule imposes no significant burden on the industry. It
would merely update and expand the HTS numbers and categories to
conform to recent updates in the numbers and categories used by USCBP.
This proposed rule also adjusts the live animal equivalencies used to
determine the amount of assessments collected on imported beef and beef
products. This adjustment reflects an increase in the average dressed
weight of cows slaughtered under Federal inspection that has occurred
since the inception of the Beef Checkoff Program. Total import
assessments collected under the Beef Checkoff Program in 2004 were
$8,322,145 including both live cattle and beef and beef products. The
Department estimates that the proposed adjustment for 2005 could result
in a decrease in importer assessment of approximately $800,000.
Accordingly, the Administrator of AMS has determined that this action
will not have a significant impact on a substantial number of small
entities.
Paperwork Reduction Act
In accordance with OMB regulations [5 CFR part 1320] that implement
the Paperwork Reduction Act of 1995 [44 U.S.C. Chapter 35], the
information collection and recordkeeping requirements contained in the
Order and Rules and Regulations have previously been approved by OMB
under OMB control number 0581-0202 and merged into OMB control number
0581-0093.
Background and Proposed Change
The Act authorized the establishment of a national beef promotion
and research program. The final Order was published in the Federal
Register on July 18, 1986, (51 FR 21632) and the collection of
assessments began on October 1, 1986. The program is administered by
the Cattlemen's Beef Promotion and Research Board (Board) appointed by
the Secretary of Agriculture (Secretary) from industry nominations
composed of 104 cattle producers and importers. The program is funded
by a $1-per-head assessment on producer marketing of cattle in the
United States and on imported cattle as well as an equivalent amount on
imported beef and beef products.
Importers pay assessments on imported cattle, beef, and beef
products. USCBP collects and remits the assessment to the Board. The
term ``importer'' is defined as ``any person who imports cattle, beef,
or beef products from outside the United States.'' Imported beef or
beef products is defined as ``products which are imported into the
United States which the Secretary determines contain a substantial
amount of beef including those products which have been assigned one or
more of the following
[[Page 58096]]
numbers in the Tariff Schedule of the United States.''
In 1989, USCBP implemented a new numbering system, the Harmonized
Tariff Schedule (HTS), to replace the Tariff Schedule of the United
States (TSUS) system. The Department updated the TSUS to HTS, in a
final rule, published in the Federal Register on April 20, 1989, (54 FR
15915) to conform with updates made by USCBP. Since the inception of
HTS, it has undergone many changes. First, the original 11 digit system
has been replaced with a 10 digit system. Additionally, most of the
categories regarding imported beef and beef products have been
subdivided and the new categories have been assigned HTS numbers. One
of the purposes of this proposed rule is to update, expand, and revise
the table found under Sec. 1260.172 (7 CFR Sec. 1260.172) to reflect
the current HTS numbers.
As a result of these changes to HTS, there are 20 new categories
that cover imported live cattle subject to assessment compared with the
previous 8 categories. The 30 categories identifying imported beef and
beef products have been expanded to 54 categories. The chart, as
published in the April 20, 1989, Federal Register final rule [54 FR
15918], is as follows:
Imported Live Cattle
------------------------------------------------------------------------
------------------------------------------------------------------------
Live bovine animals:
Purebred breeding animals
Dairy:
0102.10.00103.............. Male
0102.10.00201.............. Female
Other:
0102.10.00309.............. Male
0102.10.00504.............. Female
Other:
0102.90.20004.............. Cows imported specially for dairy
purposes
Other:
0102.90.40206.............. Weighing less than 90 kg each
0102.90.40402.............. Weighing 90 kg or more but less than
320 kg each
0102.90.40607.............. Weighing 320 kg or more each
------------------------------------------------------------------------
Imported Beef and Beef Products
------------------------------------------------------------------------
------------------------------------------------------------------------
Meat of bovine animals, fresh or chilled:
Carcasses and half-carcasses:
0201.10.00103.............. Veal
0201.10.00906.............. Other:
Other cuts with bone-in:
Processed:
0201.20.20009.............. High-quality beef Cuts
0201.20.40005.............. Other:
0201.20.60000.............. Other:
Boneless:
Processed:
0201.30.20007.............. High-quality beef cuts
0201.30.40003.............. Other:
0201.30.60008.............. Other:
Meat of bovine animals, frozen:
Carcasses and half-carcasses:
0202.10.00102.............. Veal
0202.10.00905.............. Other
Other cuts with bone in:
Processed:
0202.20.20008.............. High-quality beef cuts
0202.20.40004.............. Other
0202.20.60009.............. Other
Boneless:
Processed:
0202.30.20006.............. High-quality beef cuts
0202.30.40002.............. Other
0202.30.60007.............. Other
Edible offal of bovine animals, swine,
sheep, goats, horses, asses, mules or
hinnies, fresh, chilled, or frozen:
0206.10.00000.............. Of bovine animals, fresh or chilled
Of bovine animals, frozen:
0206.21.00007............. Tongues
0206.22.00006.............. Livers
0206.29.00009.............. Other
Meat and edible meat offal, salted, in
brine, dried or smoked: edible flours and
meals of meat or meat offal:
0210.20.00002.............. Meat of bovine animals
Sausages and similar products, of meat,
meat offal or blood; food preparation
based on these products:
Other:
1601.00.40003.............. Beef in airtight containers:
Other:
1601.00.60204.............. Beef
Other prepared or preserved meat, meat
offal or blood:
[[Page 58097]]
Of bovine animals:
1602.50.05004.............. Offal
Other:
Not containing cereals or vegetables:
1602.50.09000.............. Cured or pickled
Other:
In airtight containers:
Corned Beef
In containers holding less than 1kg
1602.50.10203.............. Other
1602.50.10409.............. Other:
1602.50.20201.............. In containers holding less than 1kg
1602.50.20407.............. Other
1602.50.60006.............. Other
------------------------------------------------------------------------
This rule proposes to update and expand the chart published in the
1989 final rule to conform with recent changes to the HTS numbering
system and revises the live weight equivalents used to calculate import
assessments. Importers are currently paying the same assessment level
for imported beef and beef products that was established when the Order
was first published in 1986. At that time, the average dressed weight
of cows slaughtered under Federal inspection was determined to be 509
pounds. The Department determined that using the average dressed weight
of domestic cows slaughtered under Federal inspection would be most
suitable because about 90 percent of imported beef and beef products
were similar to domestic cow beef.
The Act requires that assessments on imported beef and beef
products be determined by converting such imports into live animal
equivalents to ascertain the corresponding number of head of cattle.
Carcass weight is the principle factor in calculating live animal
equivalents. Under the Order the Board may increase or decrease the
level of assessments for imported beef and beef products based upon
revised determination of live animal equivalencies.
The trend in cattle weight has been increasing. This is attributed
to many factors such as genetic improvements, more refined feeding
programs, better animal health, and better overall management. The
weight of cattle will more than likely increase or hold steady. At the
time the Order was published, the average dressed weight of cows
slaughtered under Federal inspection in 1985 was 509 pounds compared to
an average of 614 pounds for calendar year 2004.
The Department has received two recommendations concerning importer
assessments. The Meat Importers Council of America (MICA) requested to
increase the live animal equivalency rate that would reduce the amount
of assessments collected from importers of beef and beef products. MICA
suggests using the dressed cow weight for calendar year 2000 to
recalculate levels of assessments. This average would be 579 pounds. In
updating the average dressed cow weight for calendar year 2004, the
average would be 614 pounds. The Board has recommended using an average
dressed cow weight from 1987 to the most current data. The Board states
that ``establishing an average over this period of time takes into
account short term highs and lows due to the cattle cycle, weather
effects, and feed prices.'' This average would be 555 pounds.
After consideration of both recommendations, the Department has
concluded that it is preferable to calculate the average using the past
5-year average dressed weight of all cows slaughtered in the U.S. under
Federal inspection.
There is not a consistent calculation method among the various
countries regarding average carcass weights of cattle slaughtered for
export, the Department proposes that the average carcass weight, which
will be used in calculating the live animal equivalents, will be the 5-
year average (2000, 2001, 2002, 2003, and 2004) carcass weight of cows
slaughtered in the United States. The average carcass weight of
domestic cattle is not subject to variations in carcass weights
resulting from possible differing methods of calculation in any of the
exporting countries. Historically, since the majority of cattle are
imported from Canada and Mexico and the majority of beef and beef
products are imported from Canada, Australia, and New Zealand, the
average U.S. dressed cow weight would be the most suitable because of
the similarity of domestic cow beef and beef products from these
exporting countries.
Additionally, an average over this period of time achieves the goal
of reflecting current genetics, production practices, and technology
while also reflecting normal marketing conditions. A shorter time
period, such as the most recent year, is subject to unusual marketing
conditions. For example, severe drought or a sudden dip in milk prices
may lead to a substantial shift in the normal marketing patterns for
cull beef and dairy cows. A longer period, such as 10 or 15 years, does
not achieve the goal of reflecting changes in animal genetics and
industry production practices.
Accordingly, the Department has determined that the most recent 5-
year weighted average balances the need to adjust for current genetics
and technology while minimizing the influence of atypical marketing
conditions on the average carcass weights of cows coming to slaughter.
The 5-year weighted average would be 592 pounds.
Further, the Department has used standard conversion factors for
determining the amount of a particular type of beef or beef product
represents a carcass. These conversions factors take into account the
removal of bone, weight lost in cooking or other processing, and the
non-beef components of beef products. The conversion factors have been
utilized to determine the rate of assessment charged to importers. The
rate of assessment is calculated by dividing the conversion factor by
the average carcass weight and multiplying the result by the $1-per-
head assessment rate. The current rates being assessed by USCBP, as
well as the most current HTS numbers, are as follows:
[[Page 58098]]
----------------------------------------------------------------------------------------------------------------
Assessment
HTS No. Imported live cattle rate
----------------------------------------------------------------------------------------------------------------
Live bovine animals:
Purebred breeding animals:
Dairy:
0102.10.0010........................... Male............................................... $1.00/head.
0102.10.0020........................... Female............................................. 1.00/head.
Other:
0102.10.0030........................... Male............................................... 1.00/head.
0102.10.0050........................... Female............................................. 1.00/head.
Other:
Cows imported specially for dairy purposes:
0102.90.2011........................... Weighing less than 90 kg each...................... 1.00/head.
0102.90.2012........................... Weighing 90 kg or more............................. 1.00/head.
Other:
Weighing less than 90 kg each:
0102.90.4024........................... Male.............................................. 1.00/head.
0102.90.4028........................... Female............................................ 1.00/head.
Weighing 90 kg or more but less than 200 kg each:
0102.90.4034........................... Male.............................................. 1.00/head.
0102.90.4038........................... Female............................................ 1.00/head.
Weighing 200kg or more but less than 320 kg each:
0102.90.4054........................... Male.............................................. 1.00/head.
0102.90.4058........................... Female............................................ 1.00/head.
Weighing 320 kg or more each:
For immediate slaughter:
0102.90.4062........................... Steers.......................................... 1.00/head.
0102.90.4064........................... Bulls........................................... 1.00/head.
0102.90.4066........................... Cows............................................ 1.00/head.
0102.90.4068........................... Heifers......................................... 1.00/head.
For breeding:
0102.90.4072........................... Male............................................ 1.00/head.
0102.90.4074........................... Female.......................................... 1.00/head.
Other:
0102.90.4082........................... Male............................................ 1.00/head.
0102.90.4084........................... Female.......................................... 1.00/head.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Assessment
HTS No. Imported beef and beef products rate per kg.
----------------------------------------------------------------------------------------------------------------
Meat of bovine animals, fresh or chilled:
Carcasses and half-carcasses:
0201.10.0510........................... Veal.............................................. .01697542
0201.10.0590........................... Other............................................. .00440920
0201.10.1010........................... Veal.............................................. .01697542
0201.10.1090........................... Other............................................. .00440920
Other:
0201.10.5010........................... Veal.............................................. .01697542
0201.10.5090........................... Other............................................. .00595242
Other cuts with bone in:
Processed:
0201.20.0200........................... High-quality beef cuts........................... .00617288
0201.20.0400........................... Other............................................ .00595242
0201.20.0600........................... Other............................................. .00440920
Processed:
0201.20.1000........................... High-quality beef cuts........................... .00617288
0201.20.3000........................... Other............................................ .00595242
0201.20.5000........................... Other............................................. .00440920
Other..............................................
0201.20.8090........................... Other............................................. .00440920
Boneless:
Processed:
0201.30.0200........................... High-quality beef cuts........................... .00617288
0201.30.0400........................... Other............................................ .00595242
0201.30.0600........................... Other............................................. .00440920
Processed:
0201.30.1000........................... High-quality beef cuts........................... .00617288
0201.30.3000........................... Other............................................ .00595242
0201.30.5000........................... Other............................................. .00595242
Other:
0201.30.8090........................... Other............................................. .00595242
Meat of bovine animals, frozen:
Carcasses and half-carcasses:
0202.10.5010........................... Veal.............................................. .01697542
0202.10.5090........................... Other............................................. .00440920
[[Page 58099]]
0202.10.1010........................... Veal.............................................. .01697542
0202.10.1090........................... Other............................................. .00440920
Other:
0202.10.5010........................... Veal.............................................. .01697542
0202.10.5090........................... Other............................................. .00440920
Other cuts with bone in:
Processed:
0202.20.0200........................... High-quality beef cuts........................... .00617288
0202.20.0400........................... Other............................................ .00595242
0202.20.0600........................... Other............................................. .00440920
Processed:
0202.20.1000........................... High-quality beef cuts........................... .00617288
0202.20.3000........................... Other............................................ .00595242
0202.20.5000........................... Other............................................. .00440920
0202.20.8000........................... Other.............................................. .00440920
Boneless:
Processed:
0202.30.0200........................... High-quality beef cuts........................... .00617288
0202.30.0400........................... Other............................................ .00595242
0202.30.0600........................... Other............................................. .00595242
Processed:
0202.30.1000........................... High-quality beef cuts........................... .00617288
0202.30.3000........................... Other............................................ .00595242
0202.30.5000........................... Other............................................. .00595242
0202.30.8000........................... Other............................................. .00440920
Edible offal of bovine animals, swine, sheep, goats,
horses, asses, mules or hinnies, fresh, chilled or
frozen:
0206.10.0000........................... Of bovine animals, fresh or chilled................ .00440920
Of bovine animals, frozen:
0206.21.0000........................... Tongues.......................................... .00440920
0206.22.0000........................... Livers........................................... .00440920
0206.29.0000........................... Other............................................ .00440920
Meat and edible meat offal, salted, in brine, dried or
smoked; edible flours and meals of meat or meat offal:
0210.20.0000........................... Meat of bovine animals............................. .00716100
Sausages and similar products, of meat, meat offal or
blood; food preparations based on these products:
Other:
Beef in airtight containers........................
1601.00.4010........................... Canned............................................ .00551150
1601.00.4090........................... Other............................................. .00551150
Other:
1601.00.6020........................... Beef.............................................. .00551150
Other prepared or preserved meat, meat offal or blood:
Of bovine animals:
Offal.............................................
Other:
Not containing cereals or vegetables:
1602.50.0900........................... Cured or pickled................................ .0771610
Other:
In airtight containers:........................
Corned Beef...................................
1602.50.1020........................... In containers holding less than 1 kg.......... .00771610
1602.50.1040........................... Other......................................... .00771610
Other:
1602.50.2020........................... In containers holding less than 1 kg.......... .00815702
1602.50.2040........................... Other......................................... .00815702
1602.50.6000........................... Other......................................... .00837748
----------------------------------------------------------------------------------------------------------------
The proposed assessment rates for imported beef and beef products
are set forth in the regulatory text of Sec. 1260.172. In 2004,
importers' contribution to the program totaled $8,322,145 including
both live cattle and beef and beef products. The Department estimates
that the proposed adjustment for 2005 could results in a decrease in
importer assessment of approximately $800,000.
A 60-day comment period is provided for interested persons to
comment.
List of Subjects in 7 CFR part 1260
Administrative practice and procedure, Advertising, Agricultural
research, Marketing agreements, Meat and meat products, beef, and beef
products.
For the reasons set forth in the preamble, it is proposed that
title 7 of the CFR part 1260 be amended as follows:
PART 1260--BEEF PROMOTION AND RESEARCH
1. The authority citation of part 1260 continues to read as
follows:
Authority: 7 U.S.C. 2901-2911.
[[Page 58100]]
2. Paragraph (b)(2) of Sec. 1260.172 is revised to read as
follows:
Sec. 1260.172 Assessments.
* * * * *
(b) * * *
(2) The assessment rates for imported cattle, beef, and beef
products are as follows:
Imported Live Cattle
------------------------------------------------------------------------
HTS No. Assessment rate
------------------------------------------------------------------------
0102.10.0010.............................. $1.00/head.
0102.10.0020.............................. $1.00/head.
0102.10.0030.............................. $1.00/head.
0102.10.0050.............................. $1.00/head.
0102.90.2011.............................. $1.00/head.
0102.90.2012.............................. $1.00/head.
0102.90.4024.............................. $1.00/head.
0102.90.4028.............................. $1.00/head.
0102.90.4034.............................. $1.00/head.
0102.90.4038.............................. $1.00/head.
0102.90.4054.............................. $1.00/head.
0102.90.4058.............................. $1.00/head.
0102.90.4062.............................. $1.00/head.
0102.90.4064.............................. $1.00/head.
0102.90.4066.............................. $1.00/head.
0102.90.4068.............................. $1.00/head.
0102.90.4072.............................. $1.00/head.
0102.90.4074.............................. $1.00/head.
0102.90.4082.............................. $1.00/head.
0102.90.4084.............................. $1.00/head.
------------------------------------------------------------------------
Imported Beef and Beef Products
------------------------------------------------------------------------
HTS No. Assessment rate per kg
------------------------------------------------------------------------
0201.10.0510.............................. .01487175
0201.10.0590.............................. .00386279
0201.10.1010.............................. .01487175
0201.10.1090.............................. .00386279
0201.10.5010.............................. .01487175
0201.10.5090.............................. .00521477
0201.20.0200.............................. .00540791
0201.20.0400.............................. .00521477
0201.20.0600.............................. .00386279
0201.20.1000.............................. .00540791
0201.20.3000.............................. .00521477
0201.20.5000.............................. .00386279
0201.20.8090.............................. .00386279
0201.30.0200.............................. .00540791
0201.30.0400.............................. .00521477
0201.30.0600.............................. .00386279
0201.30.1000.............................. .00540791
0201.30.3000.............................. .00521477
0201.30.5000.............................. .00521477
0201.30.8090.............................. .00521477
0202.10.0510.............................. .01487175
0202.10.0590.............................. .00386279
0202.10.1010.............................. .01487175
0202.10.1090.............................. .00386279
0202.10.5010.............................. .01487175
0202.10.5090.............................. .00386279
0202.20.0200.............................. .00540791
0202.20.0400.............................. .00521477
0202.20.0600.............................. .00386279
0202.20.1000.............................. .00540791
0202.20.3000.............................. .00521477
0202.20.5000.............................. .00386279
0202.20.8000.............................. .00386279
0202.30.0200.............................. .00540791
0202.30.0400.............................. .00521477
0202.30.0600.............................. .00527837
0202.30.1000.............................. .00540791
0202.30.3000.............................. .00521477
0202.30.5000.............................. .00521477
0202.30.8000.............................. .00386279
0206.10.0000.............................. .00386279
0206.21.0000.............................. .00386279
0206.22.0000.............................. .00386279
0206.29.0000.............................. .00386279
0210.20.0000.............................. .00386279
1601.00.4010.............................. .00482849
1601.00.4090.............................. .00482849
1601.00.6020.............................. .00482849
1602.50.0900.............................. .00675989
1602.50.1020.............................. .00675989
1602.50.1040.............................. .00675989
1602.50.2020.............................. .00714617
1602.50.2040.............................. .00714617
1602.50.6000.............................. .00733931
------------------------------------------------------------------------
* * * * *
Dated: September 29, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-20016 Filed 10-4-05; 8:45 am]
BILLING CODE 3410-02-P