[Federal Register Volume 71, Number 205 (Tuesday, October 24, 2006)]
[Rules and Regulations]
[Pages 62198-62201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-17776]
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DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
9 CFR Part 94
[Docket No. APHIS-2006-0037]
Change in Disease Status of Namibia With Regard to Foot-and-Mouth
Disease and Rinderpest
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Final rule.
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SUMMARY: We are amending the regulations to add Namibia, except the
portion of the country north of the Veterinary Cordon Fence (VCF), to
the list of regions that are considered free of foot-and-mouth disease
(FMD), and to add the entire country to the list of regions that are
considered free of rinderpest. We are taking this action because we
have determined that the region in Namibia south of the VCF is now free
of FMD and the entire country is free of rinderpest. We are also adding
Namibia, except the region north of the VCF, to the list of FMD- and
rinderpest-free regions that are subject to certain import restrictions
on meat and other animal products because of their proximity to or
trading relationships with rinderpest- or FMD-affected regions. This
action relieves certain
[[Page 62199]]
restrictions due to FMD and rinderpest on the importation into the
United States of certain live animals and animal products from all
regions of Namibia except the region north of the VCF. However, because
we consider Namibia to be affected with African swine fever, classical
swine fever, and swine vesicular disease, the importation of live swine
and pork and pork products will continue to be restricted. In addition,
because we consider Namibia to be affected with other animal diseases
that are exotic to the United States, the importation of live ruminants
and germplasm will also continue to be restricted. These actions will
update the disease status of Namibia with regard to FMD and rinderpest
while continuing to protect the United States from an introduction of
those diseases by providing additional requirements for any meat and
meat products imported into the United States from Namibia.
DATES: Effective Date: November 24, 2006.
FOR FURTHER INFORMATION CONTACT: Mr. Javier Vargas, Animal Scientist,
Regionalization Evaluation Services Staff, National Center for Import
and Export, VS, APHIS, 4700 River Road, Unit 38, Riverdale, MD 20737-
1231; (301) 734-0756.
SUPPLEMENTARY INFORMATION:
Background
The regulations in 9 CFR part 94 (referred to below as the
regulations) govern the importation of certain animals and animal
products into the United States in order to prevent the introduction of
various diseases, including rinderpest, foot-and-mouth disease (FMD),
African swine fever, classical swine fever, and swine vesicular
disease. These are dangerous and destructive communicable diseases of
ruminants and swine. Section 94.1 of the regulations lists regions of
the world that are declared free of rinderpest or free of both
rinderpest and FMD. Rinderpest or FMD exists in all other parts of the
world not listed. Section 94.11 of the regulations lists regions of the
world that have been determined to be free of rinderpest and FMD, but
that are subject to certain restrictions because of their proximity to
or trading relationships with rinderpest- or FMD-affected regions.
On June 15, 2006, we published in the Federal Register (71 FR
34537-34549, Docket No. APHIS-2006-0037) a proposal \1\ to amend the
regulations by recognizing the entire country of Namibia as rinderpest-
free and all of Namibia except the region north of the Veterinary
Cordon Fence (VCF) as free of FMD. We also proposed to add Namibia,
except the region north of the VCF, to the list of FMD- and rinderpest-
free regions that are subject to certain import restrictions on meat
and other animal products because of their proximity to or trading
relationships with rinderpest- or FMD-affected regions. In our
proposal, we noted that, because we consider Namibia to be affected
with African swine fever, classical swine fever, and swine vesicular
disease, the importation of live swine and pork and pork products would
continue to be restricted. In addition, because we consider Namibia to
be affected with other animal diseases that are exotic to the United
States, the importation of live ruminants and germplasm would also
continue to be restricted.
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\1\ To view the proposed rule, go to http://www.regulations.gov,
click on the ``Advanced Search'' tab, and select ``Docket Search.''
In the Docket ID field, enter APHIS-2006-0037, then click
``Submit.'' Clicking on the Docket ID link in the search results
page will produce a list of all documents in the docket.
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We solicited comments concerning our proposal for 60 days ending
August 14, 2006. We did not receive any comments. Therefore, for the
reasons given in the proposed rule, we are adopting the proposed rule
as a final rule, without change.
Executive Order 12866 and Regulatory Flexibility Act
This rule has been reviewed under Executive Order 12866. For this
action, the Office of Management and Budget has waived its review under
Executive Order 12866.
We are amending the regulations in Sec. 94.1 to list Namibia as a
region free of rinderpest and the region of Namibia south of the VCF as
a region free of FMD. However, since Namibia borders on and trades with
regions that the United States does not recognize as free of FMD and
because its importation standards are less stringent than those of the
United States, we are also listing the region of Namibia south of the
VCF in Sec. 94.11 as a region subject to the additional certification
requirements of that section.
It should be noted that Namibia is not currently eligible to export
ruminant meat products to the United States under the regulations of
the United States Department of Agriculture's Food Safety Inspection
Service (FSIS); there would, therefore, be no economic effects on U.S.
entities until establishments in Namibia were approved to export
ruminant meat and other products to the United States. The following
analysis examines the potential economic impacts of the changes in the
regulations that could occur if establishments in Namibia were approved
to export under the FSIS regulations.
Namibia produces and internationally trades in beef, sheep, goat,
and game meat. Namibia produced 134 million pounds of beef in 2004 and
exported an average of 59.2 million pounds of beef and veal per year
between 1994 and 2003. The country has established trading
relationships with the Republic of South Africa and several western
European countries. Namibia also produced 29.6 million pounds of
mutton, lamb, and goat meat in 2003 and exported an average of 5.73
million pounds per year between 1994 and 2003, with most exports going
to the Republic of South Africa. Namibia produced 8.8 million pounds of
game meat in 2003.
Namibia's agricultural trade with the United States is small. In
2003, Namibia exported agricultural products worth a total $199,000, of
which $21,000 was for hides and skins, and imported $5.443 million
worth of agricultural products, of which $40,000 was for beef and veal.
(Sources: FAO, FAOSTAT, 2004; UN/FAO, FAOSTAT Data, 2004; Hilda
Hampweya, April 2005, personal communication, Namibia Division of Trade
and Statistics.)
Possible economic effects of imports from Namibia would differ for
beef and for sheep and goat meat imports. For beef imports,
approximately 22 million pounds of beef could be imported annually from
Namibia as a result of this rule (again, assuming FSIS approval) based
on data collected from the Central Bureau of Statistics-Trade
Statistics Division of Namibia. Based on 10-year average U.S. domestic
supply, an import of about 22 million pounds of beef would result in a
price decrease of less than $0.002 per pound at the wholesale level. If
50 percent of Namibia's 10-year average beef exports (29.6 million
pounds) were diverted to the U.S. market, the result would be a price
decline of only $0.0024 per pound (table 1).
As for sheep and goats, the estimated potential exports to the
United States of these meats are about 15.43 million pounds per year
according to data collected from the Central Bureau of Statistics-Trade
Statistics Division of Namibia. If this supply were realized, U.S.
sheep and goat meat prices could decline and sheep producers could be
negatively affected, as the above figure represents about 4.35 percent
of U.S. domestic supply. This could result in a
[[Page 62200]]
price decline of $0.07 per pound (table 1). However, it is questionable
whether Namibia would have the capacity to export this amount and
maintain its trade with its established South African and European
markets. Although several markets in the European Union are accessible
to Namibia, the Republic of South Africa continues to be its major
trading partner. Namibia exported 15.66 million pounds of sheep and
goat meat to all countries in 2003, so to meet this goal of 15.43
million pounds exported to the United States, nearly all of the current
exports would have to be diverted. Between 1994 and 2003, Namibian
exports of sheep and goats have fluctuated, with a negative export
growth rate in every year except for four: 1995, 1998, 1999, and 2001.
The impact is not as large when based on the 10-year average quantity
exported of 5.73 million pounds. Assuming this level of export to the
United States, the estimated decline in price is between $0.02 and
$0.03 per pound.
Table 1.--The Impact of the Importation of Beef, Sheep, and Goat Meat From Namibia to the United States
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Beef Sheep and goat meat
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Domestic Domestic
Percentage diverted to U.S. market \1\ Decline in producer Decline in producer
Million Change in price loss Million Change in price loss
pounds price (%) (cents/ (millions pounds price (%) (cents/ (millions
pound) of $) pound) of $)
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10...................................................... 5.92 -0.0291 -0.0483 -11.902 0.573 -0.231 -0.261 -0.435
20...................................................... 11.84 -0.0582 -0.0966 -23.795 1.146 -0.461 -0.521 -0.871
40...................................................... 23.68 -0.1164 -0.1932 -47.586 2.293 -0.922 -1.042 -1.742
50...................................................... 29.6 -0.1454 -0.2414 -59.479 2.865 -1.153 -1.303 -2.177
Designated.............................................. \2\ 22.05 -0.1083 -0.1799 -44.309 \2\ 15.43 -6.209 -7.016 -11.725
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\1\ The percentages are based on the 10-year average exports: 59.2 million pounds for beef and 5.73 million pounds for sheep and goat meat.
\2\ Denotes the estimated amount indicated by Namibian agricultural specialists and the industry as being available for export to the United States.
The impacts depicted in table 1 are further considered in terms of
effects for large and small entities in table 2 (beef producers) and
table 3 (sheep and goat producers). In each case, impacts at various
import levels are apportioned between large and small establishments by
inventory share, according to the 2002 Census of Agriculture. Average
effects per establishment are calculated based on numbers of large and
small establishments with reported sales (2002 Census of Agriculture).
As shown in table 2, if Namibia were to divert to the United States
22.05 million pounds of beef exports per year, as projected by that
country's agricultural specialists, the average annual decline in
revenue for U.S. small entities would be about $28. Similarly, if 15.43
million pounds of sheep and goat meat exports per year were diverted to
the United States, as projected by Namibia, the average annual decline
in revenue for U.S. small entities would be about $108.
Table 2.--Potential Effects for Large and Small Beef Cattle Producers
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Large \2\ Small \2\
U.S. producer -------------------------------------------------------------------------
Percentage diverted to the U.S. market \1\ revenue loss Average Average
(millions of $) Revenue loss revenue loss Revenue loss revenue loss
(millions of $) ($) (millions of $) ($)
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10........................................................ -11.902 -5.571 -860 -6.331 -8
20........................................................ -23.795 -11.138 -1,719 -12.657 -15
40........................................................ -47.586 -22.275 -3,437 -25.311 -30
50........................................................ -59.479 -27.642 -4,265 -31.637 -38
Designated................................................ -44.309 -20.741 -3,200 -23.568 -28
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\1\ The percentages are based on the 10-year average exports: 59.2 million pounds for beef and 5.73 million pounds for sheep and goat meat.
\2\ Revenue losses to large and small establishments are distributed according to inventory share (46.81 percent for large and 53.19 percent for small
establishments). Averaged revenue losses are calculated by dividing by the number of establishments (845,490 and 6,481 for small and large
establishments, respectively).
Table 3.--Potential Effects for Large and Small Sheep and Goat Producers
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Large \2\ Small \2\
U.S. producer -------------------------------------------------------------------------
Percentage diverted to the U.S. market \1\ revenue loss Average Average
(millions of $) Revenue loss revenue loss Revenue loss revenue loss
(millions of $) ($) (millions of $) ($)
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10........................................................ -0.435 -0.114 -765 -0.321 -4
20........................................................ -0.871 -0.229 -1,537 -0.642 -8
40........................................................ -1.742 -0.458 -3,074 -1.284 -16
50........................................................ -2.177 -0.573 -3,846 -1.604 -20
Designated................................................ -11.725 -3.084 -20,698 -8.641 -108
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\1\ The percentages are based on the 10-year average exports: 59.2 million pounds for beef and 5.73 million pounds for sheep and goat meat.
\2\ Revenue losses to large and small establishments are distributed according to inventory share (26.3 percent for large and 73.7 percent for small
establishments). Average revenue losses are calculated by dividing by the number of establishments (80,443 and 149 for small and large establishments,
respectively).
[[Page 62201]]
According to the size standards established by the Small Business
Administration (SBA) for livestock and animal specialties, producers of
cattle and calves (North American Industry Classification System
[NAICS] code 112111), game animals (NAICS 112990), sheep (NAICS
112410), and goats (NAICS 112420) with not more than $750,000 annual
sales qualify as small entities. Based on data from the 2002 Census of
Agriculture, 851,971 operations in the U.S. raised and sold 73 million
cattle and calves in 2002. Small operations (over 99 percent of the
farms) had an average of 68 cattle and an average income of $24,067,
well below the SBA criterion of $750,000 in annual sales for businesses
primarily engaged in cattle farming. Large operations had an annual
income of $3,821,440. Similarly, over 99 percent of sheep and goat
producers (80,443) are small. Small sheep and lamb producers had an
average income of $7,520, while large ones had an average income of
$1.042 million.
Meat processing entities (NAICS 311612), and meat and meat product
merchant wholesalers (NAICS 424470) may be affected by this rule
(Source: U.S. Census Bureau, 2002 Economic Census, Wholesale Trade-
Subject Series, August 2006). Under SBA standards, meat processing
establishments with no more than 500 employees and meat and meat
product wholesalers with no more than 100 employees are considered
small. In 2002, there were 1,335 companies in the United States that
processed and sold meat. More than 97 percent of these establishments
are considered to be small entities and had average sales of $15.4
million, while large meat processors had average sales of $188 million.
In 2002, there were 2,535 meat and meat product wholesalers in the
United States. (Source: SBA and 2002 Economic Census.) Of these
establishments, 2,456 (97 percent) employed not more than 100 employees
and are, thus, considered small by SBA standards. Small wholesalers had
average sales of $9.3 million, while large entities had average sales
of $131 million.\2\
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\2\ U.S. Census Bureau, 2002 Economic Census: Manufacturing-
Industries Series, Wholesale Trade-Subject Series and Transportation
and Warehousing-Subject Series, Issued December 2005.
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The only alternative to the rule would involve not changing the
current regulations regarding the importation of beef, sheep, and goat
meat and game meat from Namibia. This alternative would not be
appropriate in light of the findings of our risk analysis and our
conclusion that the Namibian government has the laws, policies, and
infrastructure to detect, respond to, and eliminate any reoccurrence of
FMD. The rule provides the safeguarding measures appropriate to the
animal disease risk associated with importation of this type of animal
product. The rule also enhances a positive trade environment between
Namibia and the United States. We note again that Namibia is not
currently eligible to export ruminant meat products to the United
States under the FSIS regulations cited earlier in this document; there
would, therefore, be no economic effects on U.S. entities until
establishments in Namibia were approved to export ruminant meat and
other products to the United States.
Under these circumstances, the Administrator of the Animal and
Plant Health Inspection Service has determined that this action will
not have a significant economic impact on a substantial number of small
entities.
Executive Order 12372
This program/activity is listed in the Catalog of Federal Domestic
Assistance under No. 10.025 and is subject to Executive Order 12372,
which requires intergovernmental consultation with State and local
officials. (See 7 CFR part 3015, subpart V.)
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule: (1) Preempts all State and local laws
and regulations that are in conflict with this rule; (2) has no
retroactive effect; and (3) does not require administrative proceedings
before parties may file suit in court challenging this rule.
Paperwork Reduction Act
This final rule contains no information collection or recordkeeping
requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501
et seq.).
List of Subjects in 9 CFR Part 94
Animal diseases, Imports, Livestock, Meat and meat products, Milk,
Poultry and poultry products, Reporting and recordkeeping requirements.
0
Accordingly, we are amending 9 CFR part 94 as follows:
PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL
PLAGUE), EXOTIC NEWCASTLE DISEASE, AFRICAN SWINE FEVER, CLASSICAL
SWINE FEVER, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND
RESTRICTED IMPORTATIONS
0
1. The authority citation for part 94 continues to read as follows:
Authority: 7 U.S.C. 450, 7701-7772, 7781-7786, and 8301-8317; 21
U.S.C. 136 and 136a; 31 U.S.C. 9701; 7 CFR 2.22, 2.80, and 371.4.
Sec. 94.1 [Amended]
0
2. Section 94.1 is amended as follows:
0
a. In paragraph (a)(2), by adding the words ``Namibia (excluding the
region north of the Veterinary Cordon Fence),'' after the word
``Mexico,''.
0
b. In paragraph (a)(3), by removing the words ``The Republic'' and
adding the words ``Namibia and the Republic'' in their place.
Sec. 94.11 [Amended]
0
3. In Sec. 94.11, paragraph (a) is amended by adding the words
``Namibia (excluding the region north of the Veterinary Cordon
Fence),'' before the words ``The Netherlands''.
Done in Washington, DC, this 18th day of October 2006.
Kevin Shea,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. E6-17776 Filed 10-23-06; 8:45 am]
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