[Federal Register: August 16, 2006 (Volume 71, Number 158)]
[Rules and Regulations]
[Page 47074-47076]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16au06-2]
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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--Final Rule
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule amends 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 (HTS) 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 (Customs).
DATES: Effective Date: September 15, 2006.
FOR FURTHER INFORMATION CONTACT: 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; facsimile 202/720-1125; telephone 202/
720-1115, 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 final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have a retroactive
effect.
Section 11 of the Act 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
[[Page 47075]]
U.S.C. 601 et seq.), the Administrator of AMS 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 service firms as those having annual
receipts of $6.5 million or less.
The final rule will impose no significant burden on the industry.
It will merely update and expand the HTS numbers and categories to
conform to recent updates in the numbers and categories used by
Customs. This final rule will also adjust 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. 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 the Office of Management and Budget (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
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. Customs 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 numbers in the Tariff Schedule of the United
States.''
In 1989, Customs implemented a new numbering system, the HTS, to
replace the Tariff Schedule of the United States (TSUS) system. The
Department of Agriculture (USDA) 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 Customs. 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. The
purpose of this final rule is to update, expand, and revise the table
found under Sec. 1260.172 (7 CFR 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.
This final rule simply updates and expands 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. USDA 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.
Prior to publishing the proposed rule, USDA 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 recommends 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.
Comments
On October 5, 2005, USDA published in the Federal Register (70 FR
58095) a proposed rule to 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 HTS 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 Customs.
USDA received in a timely manner two comments, one from the
Executive Director of the Meat Importers Council of America (MICA) and
another from an interested party. The two comments have been posted on
AMS' Web site at http://www.ams.usda.gov/lsg/mpb/rp-beef.htm. The
changes suggested by commenters are discussed below.
[[Page 47076]]
Discussion of Comments
The USDA proposed establishing the average carcass weight using a
5-year weighted average carcass weight of domestic cows. Although MICA
supports the reduction of assessment levels for imported beef and beef
products, MICA contends the basis for determining the assessment should
not be the proposed 5-year weighted average carcass weight of all cows
slaughtered in the U.S. under Federal inspection because imported beef
is derived from a range of classes of stock, including steers, heifers
and bulls as well as cows. The commenter recommended that the formula
be based on a mix of cow and steer weights. Thus, MICA proposed that
the carcass weight used to calculate the assessments on imported beef
be based on a ratio of one-third (1/3) of the 5-year average carcass
weight of steers and two-thirds (2/3) of the 5-year average carcass
weight of cows which would result in an average carcass weight of
approximately 663 pounds. While this does not take into account bulls
and heifers, the commenter feels that the differences in these two
classes would probably balance each other out and, thus, would not
materially affect the calculation.
USDA reviewed total imported beef and veal production on a carcass
weight equivalent to identify the top 10 countries exporting to the
United States in 2005. These countries accounted for more than 99
percent of U.S. beef and veal imports for that year. We then calculated
the average carcass weight of cattle slaughtered in each country for
the years 2000-2004 by dividing total beef production by the total
number of cattle slaughtered. Based on our calculations, the average
carcass weight of these 10 exporting countries was 592 pounds during
this period, which is the same weight published in the proposed rule.
In other words, accounting for all cattle (whether steers, heifers,
cows, or bulls) produced by the leading countries from which the United
States imports beef leads to the same carcass weight equivalent as that
in the proposed rule. Using the recent 5-year average carcass weight of
all domestic cows slaughtered in the U.S. under Federal inspection is
very representative of the average carcass weight of for those
countries importing to the U.S. Consequently, the comment is not
adopted.
While expressing general misgivings concerning the program, the
second commenter suggested that the assessment rate should be increased
to $10 per head. The Act provides that the assessment rate for live
imported cattle be $1 per head. Consequently, this comment is not
adopted.
Accordingly, it is appropriate to use a 5-year average dressed
weight of domestic cows slaughtered under Federal inspection of 592
pounds to calculate assessments on imported beef and beef products.
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.
0
For the reasons set forth in the preamble, title 7 of the CFR part 1260
is amended as follows:
PART 1260--BEEF PROMOTION AND RESEARCH
0
1. The authority citation for 7 CFR part 1260 continues to read as
follows:
Authority: 7 U.S.C. 2901-2911.
0
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
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Assessment
HTS No. rate (head)
------------------------------------------------------------------------
0102.10.0010............................................ $1.00
0102.10.0020............................................ 1.00
0102.10.0030............................................ 1.00
0102.10.0050............................................ 1.00
0102.90.2011............................................ 1.00
0102.90.2012............................................ 1.00
0102.90.4024............................................ 1.00
0102.90.4028............................................ 1.00
0102.90.4034............................................ 1.00
0102.90.4038............................................ 1.00
0102.90.4054............................................ 1.00
0102.90.4058............................................ 1.00
0102.90.4062............................................ 1.00
0102.90.4064............................................ 1.00
0102.90.4066............................................ 1.00
0102.90.4068............................................ 1.00
0102.90.4072............................................ 1.00
0102.90.4074............................................ 1.00
0102.90.4082............................................ 1.00
0102.90.4084............................................ 1.00
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Imported Beef and Beef Products
------------------------------------------------------------------------
Assessment
HTS No. rate per kg
------------------------------------------------------------------------
0201.10.0510............................................ .01459542
0201.10.0590............................................ .00379102
0201.10.1010............................................ .01459542
0201.10.1090............................................ .00379102
0201.10.5010............................................ .01459542
0201.10.5090............................................ .00511787
0201.20.0200............................................ .00530743
0201.20.0400............................................ .00511787
0201.20.0600............................................ .00379102
0201.20.1000............................................ .00530743
0201.20.3000............................................ .00511787
0201.20.5000............................................ .00379102
0201.20.8090............................................ .00379102
0201.30.0200............................................ .00530743
0201.30.0400............................................ .00511787
0201.30.0600............................................ .00379102
0201.30.1000............................................ .00530743
0201.30.3000............................................ .00511787
0201.30.5000............................................ .00511787
0201.30.8090............................................ .00511787
0202.10.0510............................................ .01459542
0202.10.0590............................................ .00379102
0202.10.1010............................................ .01459542
0202.10.1090............................................ .00370102
0202.10.5010............................................ .01459542
0202.10.5090............................................ .00379102
0202.20.0200............................................ .00530743
0202.20.0400............................................ .00511787
0202.20.0600............................................ .00379102
0202.20.1000............................................ .00530743
0202.20.3000............................................ .00511787
0202.20.5000............................................ .00379102
0202.20.8000............................................ .00379102
0202.30.0200............................................ .00530743
0202.30.0400............................................ .00511787
0202.30.0600............................................ .00527837
0202.30.1000............................................ .00530743
0202.30.3000............................................ .00511787
0202.30.5000............................................ .00511787
0202.30.8000............................................ .00379102
0206.10.0000............................................ .00379102
0206.21.0000............................................ .00379102
0206.22.0000............................................ .00379102
0206.29.0000............................................ .00379102
0210.20.0000............................................ .00615701
1601.00.4010............................................ .00473877
1601.00.4090............................................ .00473877
1601.00.6020............................................ .00473877
1602.50.0900............................................ .00663428
1602.50.1020............................................ .00663428
1602.50.1040............................................ .00663428
1602.50.2020............................................ .00701388
1602.50.2040............................................ .00701388
1602.50.6000............................................ .00720293
------------------------------------------------------------------------
* * * * *
Dated: August 9, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E6-13477 Filed 8-15-06; 8:45 am]
BILLING CODE 3410-02-P