[Federal Register: January 9, 2007 (Volume 72, Number 5)]
[Proposed Rules]
[Page 1101-1129]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ja07-21]
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Part III
Department of Agriculture
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Animal and Plant Health Inspection Service
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9 CFR Parts 93, 94, 95, and 96
Bovine Spongiform Encephalopathy; Minimal-Risk Regions; Importation of
Live Bovines and Products Derived From Bovines; Proposed Rule
[[Page 1102]]
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DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
9 CFR Parts 93, 94, 95, and 96
[Docket No. APHIS-2006-0041]
RIN 0579-AC01
Bovine Spongiform Encephalopathy; Minimal-Risk Regions;
Importation of Live Bovines and Products Derived From Bovines
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Proposed rule.
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SUMMARY: We are proposing to amend the regulations regarding the
importation of animals and animal products to establish conditions for
the importation of the following commodities from regions that present
a minimal risk of introducing bovine spongiform encephalopathy (BSE)
into the United States: Live bovines for any use born on or after a
date determined by APHIS to be the date of effective enforcement of a
ruminant-to-ruminant feed ban in the region of export; blood and blood
products derived from bovines; and casings and part of the small
intestine derived from bovines. We are proposing these amendments after
conducting a risk assessment and comprehensive evaluation of the issues
that concluded that such bovines and bovine products can be safely
imported under the conditions described in this proposed rule.
DATES: We will consider all comments that we receive on or before March
12, 2007.
ADDRESSES: You may submit comments by either of the following methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov
, select ``Animal and Plant Health Inspection
Service'' from the agency drop-down menu, then click ``Submit.'' In the
Docket ID column, select APHIS-2006-0041 to submit or view public
comments and to view supporting and related materials available
electronically. Information on using Regulations.gov, including
instructions for accessing documents, submitting comments, and viewing
the docket after the close of the comment period, is available through
the site's ``User Tips'' link.
Postal Mail/Commercial Delivery: Please send four copies
of your comment (an original and three copies) to Docket No. APHIS
2006-0041, Regulatory Analysis and Development, PPD, APHIS, Station 3A-
03.8, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please state
that your comment refers to Docket No. APHIS 2006-0041.
Reading Room: You may read any comments that we receive on this
docket in our reading room. The reading room is located in room 1141 of
the USDA South Building, 14th Street and Independence Avenue, SW.,
Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m.,
Monday through Friday, except holidays. To be sure someone is there to
help you, please call (202) 690-2817 before coming.
Other Information: Additional information about APHIS and its
programs is available on the Internet at http://www.aphis.usda.gov.
FOR FURTHER INFORMATION CONTACT: For information regarding ruminant
products, contact Dr. Karen James-Preston, Director, Technical Trade
Services, Animal Products, National Center for Import and Export, VS,
APHIS, 4700 River Road Unit 38, Riverdale, MD 20737-1231; (301) 734-
4356.
For information concerning live ruminants, contact Dr. Lee Ann
Thomas, Director, Technical Trade Services, Animals, Organisms and
Vectors, and Select Agents, National Center for Import and Export, VS,
APHIS, 4700 River Road Unit 38, Riverdale, MD 20737-1231; (301) 734-
4356.
For other information concerning this proposed rule, contact Dr.
Lisa Ferguson, Senior Staff Veterinarian, National Center for Animal
Health Programs, VS, APHIS, 4700 River Road Unit 43, Riverdale, MD
20737-1231; (301) 734-6954.
SUPPLEMENTARY INFORMATION:
I. Background
The Animal and Plant Health Inspection Service (APHIS) of the U.S.
Department of Agriculture (USDA or Department) regulates the
importation of animals and animal products into the United States to
guard against the introduction of animal diseases. The regulations in 9
CFR parts 93, 94, 95, and 96 (referred to below as the regulations)
govern the importation of certain animals, birds, poultry, meat, other
animal products and byproducts, hay, and straw into the United States
in order to prevent the introduction of various animal diseases,
including bovine spongiform encephalopathy (BSE), a chronic
degenerative disease affecting the central nervous system of cattle.
With some exceptions, APHIS' regulations prohibit or restrict the
importation of live ruminants and certain ruminant products and
byproducts from the following three categories of regions with regard
to BSE: (1) Those regions in which BSE is known to exist (listed in
Sec. 94.18(a)(1) of the regulations); (2) those regions that present
an undue risk of introducing BSE into the United States because their
import requirements are less restrictive than those that would be
acceptable for import into the United States and/or because the regions
have inadequate surveillance (listed in Sec. 94.18(a)(2) of the
regulations); and (3) those regions that present a minimal risk of
introducing BSE into the United States via live ruminants and ruminant
products and byproducts (listed in Sec. 94.18(a)(3) of the
regulations).
Chronology of APHIS Federal Register Publications Regarding BSE
Minimal-Risk Regions
We added the Sec. 94.18(a)(3) category (BSE minimal-risk regions)
to the regulations in a final rule published in the Federal Register on
January 4, 2005 (70 FR 459-553, Docket No. 03-080-3). In the final
rule, we specified which commodities may be imported from BSE minimal-
risk regions and under what conditions, and recognized Canada as a BSE
minimal-risk region. (At this time, Canada is the only recognized BSE
minimal-risk region.)
The January 2005 final rule was based on a proposed rule we
published in the Federal Register on November 4, 2003 (68 FR 62386-
62405, Docket No. 03-080-1). On December 25, 2003, less than 2 weeks
before the close of the comment period for our proposed rule, a case of
BSE in a dairy cow of Canadian origin in Washington State was verified
by an international reference laboratory.
In response to comments from the public requesting an extension of
the comment period and in order to give the public an additional
opportunity to comment on the proposed rule in light of this
development, on March 8, 2004, we published a notice in the Federal
Register (69 FR 10633-10636, Docket No. 03-080-2) reopening and
extending the comment period.
On January 5, 2005, along with the final rule, we published in the
Federal Register a notice (70 FR 554, Docket No. 03-080-4) announcing
the availability of, and requesting comments on, a final environmental
assessment (EA) regarding the potential impact on the quality of the
human environment due to the importation of ruminants and ruminant
products and byproducts from Canada under the conditions specified in
the final rule. On January 21, 2005, we published in the Federal
Register a
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notice (70 FR 3183-3184, Docket No. 03-080-5) announcing the
availability of a corrected version of the EA for public review and
comment. On April 8, 2005, we published in the Federal Register a
finding (70 FR 18252-18262, Docket No. 03-080-7) that the provisions of
the final rule would not have a significant impact on the quality of
the human environment.
On March 11, 2005, we published a document in the Federal Register
that gave notice that the Secretary of Agriculture was delaying until
further notice the implementation of certain provisions of the final
rule with regard to certain commodities (70 FR 12112-12113, Docket No.
03-080-6).
On November 28, 2005, we published in the Federal Register an
interim rule (70 FR 71213-71218, Docket No. 03-080-8) that amended
certain provisions established by the January 2005 final rule. The
interim rule broadened the list of who is authorized to break seals on
conveyances and allows transloading under supervision of products
transiting the United States.
On March 14, 2006, we published in the Federal Register a technical
amendment (71 FR 12994-12998, Docket No. 03-080-9) that clarified our
intent with regard to certain provisions in the January 2005 final rule
and corrected several inconsistencies within the rule.
On August 9, 2006, we published in the Federal Register a proposed
rule (71 FR 45439-45444, Docket No. APHIS-2006-0026) that proposed to
amend the provisions established by the January 2005 final rule by
removing several restrictions regarding the identification of animals
and the processing of ruminant materials from BSE minimal-risk regions,
and by relieving BSE-based restrictions on hide-derived gelatin from
BSE minimal-risk regions. We solicited comments concerning our proposal
for 60 days ending October 10, 2006. On November 9, 2006, we published
a notice in the Federal Register (71 FR 65758-65759, Docket No. APHIS-
2006-0026) reopening and extended the comment period until November 24,
2006. We received a total of 10 comments by that date. We are
considering the issues raised by the commenters and will address them
in a separate rulemaking document.
Scope of the January 2005 Final Rule
The regulations established by the January 2005 final rule and
subsequent amendments allow the importation from BSE minimal-risk
regions of live bovines that are under 30 months of age when imported
and when slaughtered and that have been subject to a ruminant feed ban
equivalent to that in place in the United States. The risk analysis we
conducted for that rule found that, because of the nature, incubation
period, and progression of BSE infectivity, young cattle exposed to low
levels of BSE will accumulate very little BSE infectivity within the
first few years of life, and that cattle under 30 months of age from a
BSE minimal-risk region are highly unlikely to have accumulated
significant amounts of BSE infectivity even if infected. We concluded,
therefore, that the risk to U.S. livestock presented by the importation
of such bovines was low.
We did not attempt, for that rulemaking, to assess the BSE risk
associated with the importation of live bovines 30 months of age or
older from a BSE minimal-risk region. Our March 8, 2004, notice that
reopened and extended the comment period on the November 2003 proposed
rule stated that APHIS was evaluating the appropriate approach with
regard to the importation of live animals 30 months of age or older
from BSE minimal-risk regions, and would address that issue in a
supplemental rulemaking proposal in the Federal Register. The
provisions in this proposed rule regarding live bovines are the result
of that evaluation.
The regulations established by the January 2005 final rule also
allow the importation of the following commodities derived from bovines
of any age: (1) Meat, meat food products, and meat byproducts; (2)
whole or half carcasses; (3) offal; (4) tallow composed of less than
0.15 percent insoluble impurities that are not otherwise eligible for
importation under Sec. 95.4(a)(1)(i) of the regulations; and (5)
gelatin derived from bones of bovines that is not otherwise eligible
for importation under Sec. 94.18(c) of the regulations.
The January 2005 final rule and subsequent amendments did not
change the regulations concerning the importation of blood and blood
products from regions listed in Sec. 94.18(a); the requirements for
the importation of blood and blood products from BSE minimal-risk
regions remain the same as the requirements for importation of blood
and blood products from other regions listed in Sec. 94.18(a)--only
serum and serum albumin are eligible for importation. The January 2005
final rule also did not change the regulations concerning the
importation of bovine casings (defined as intestines, stomachs,
esophagi, and urinary bladders) from regions listed in Sec. 94.18(a);
the requirements for the importation of bovine casings from BSE
minimal-risk regions remain the same as the requirements for
importation of bovine casings from other regions listed in Sec. in
94.18(a)--only bovine stomachs are eligible for importation.
The January 2005 final rule and subsequent amendments allowed trade
to resume in many, but not all, of the commodities that had been
prohibited importation from Canada following detection of a BSE-
infected cow in Canada in May 2003. We have continued to consider the
BSE risk associated with older bovines and other bovine products from
BSE minimal-risk regions--and Canada in particular--including bovine
blood and blood products, bovine small intestine other than the distal
ileum, and bovine casings, which are the subject of this proposed rule.
Under the Animal Health Protection Act (7 U.S.C. 8301 et seq.), the
Secretary of Agriculture may prohibit the importation of any animal or
article if the Secretary determines that the prohibition is necessary
to prevent the introduction into or dissemination within the United
States of any pest or disease of livestock. The Secretary has
determined that it is not necessary to continue to prohibit the
importation from BSE minimal-risk regions (currently only Canada) of
live bovines born after the date a feed ban was effectively enforced in
the region of export, bovine blood or blood products, bovine small
intestine other than the distal ileum, or bovine casings, provided that
the conditions described in this proposal are met.\1\ This
determination is based on a number of factors, which are discussed in
this document and, in greater detail, in the risk assessment prepared
for this rulemaking. The risk assessment, and the peer review plan and
charge for this assessment may be viewed on the Regulations.gov Web
site or in our reading room. Instructions for accessing Regulations.gov
and information on the location and hours of the reading room are
provided under the heading ADDRESSES at the beginning of this proposed
rule.) In addition, copies may be obtained by calling or writing to the
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individuals listed under FOR FURTHER INFORMATION CONTACT.
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\1\ The current regulations regarding BSE minimal-risk regions
apply to bison as well as cattle. In current Sec. Sec. 93.400,
94.0, and 95.1 of the regulations, bovine is defined as Bos taurus,
Bos indicus, and Bison bison. Although the research and other data
cited in this proposed rule refer to bovines other than bison (i.e.,
to ``cattle''), there is no evidence to indicate that the BSE
susceptibility of bison differs from that of cattle. We therefore
assume that our conclusions based on cattle-specific evidence
discussed in this proposed rule are also applicable to bison. Given
that no cases of BSE have been detected in bison, this is likely a
cautious assumption. The provisions of this proposed rule would
apply to bovines as defined in the current regulations, which
include bison.
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II. BSE and the Government's Role in Protecting Human and Animal Health
A. Nature of BSE
BSE is a progressive and fatal neurological disorder of cattle that
results from an unconventional transmissible agent. BSE belongs to the
family of diseases known as transmissible spongiform encephalopathies
(TSEs). All TSEs affect the central nervous system of infected animals.
However, the distribution of infectivity in the body of the animal and
mode of transmission differ according to the species and TSE agent. In
addition to BSE, TSEs include, among other diseases, scrapie in sheep
and goats, chronic wasting disease in deer and elk, and Creutzfeldt-
Jakob disease in humans.
The agent that causes BSE has yet to be fully characterized. The
theory that is most accepted in the international scientific community
is that the agent is an abnormal form of a normal protein known as
cellular prion protein. The BSE agent does not evoke a traditional
immune response or inflammatory reaction in host animals. BSE is
confirmed by post-mortem microscopic examination of an animal's brain
tissue or by detection of the abnormal form of the prion protein in an
animal's brain tissues. The pathogenic form of the protein is both less
soluble and more resistant to degradation than the normal form. The BSE
agent is resistant to heat and to normal sterilization processes.
BSE is not a contagious disease, and therefore is not spread
through casual contact between animals. (The possibility of maternal
transmission (i.e., from a bovine dam directly to her offspring) was
suggested by a 1997 study (Ref 1) conducted in the United Kingdom.
However, subsequent studies have shown that it is unlikely that
maternal transmission of BSE occurs at any epidemiologically
significant level, if it occurs at all (Ref 2)). Scientists believe
that the primary route of transmission requires that cattle ingest feed
that has been contaminated with a sufficient amount of tissue from an
infected animal. This route of transmission can be prevented by
excluding potentially contaminated materials from ruminant feed.
B. U.S. Government's Role in Protecting Human and Animal Health
Because variant Creutzfeldt-Jakob Disease (vCJD), a chronic and
fatal neurodegenerative disease of humans, has been linked via
scientific and epidemiological studies to exposure to the BSE agent,
most likely through consumption of cattle products contaminated with
the BSE agent, APHIS collaborates with other Federal agencies to
implement a coordinated U.S. response to BSE.
Protecting human and animal health from the risks of BSE is carried
out on the Federal level primarily by APHIS regarding animal health and
the Department's Food Safety and Inspection Service (FSIS) regarding
the food safety of meat and poultry, in coordination with the following
Centers of the Food and Drug Administration (FDA), U.S. Department of
Health and Human Services: The Center for Veterinary Medicine regarding
animal feed and animal drugs; the Center for Food Safety and Applied
Nutrition regarding foods other than meat, poultry, and egg products;
the Center for Biologics Evaluation and Research regarding blood and
blood products and other products; the Center for Drug Evaluation and
Research regarding drugs containing bovine material; and the Center for
Devices and Radiological Health regarding devices containing bovine
material.
APHIS recognizes that, although Federal agencies may differ
somewhat in their specific mandates, it is necessary to conduct a
coordinated Federal effort to safeguard human and animal health. We
consider it important to base APHIS' regulatory actions on the best
scientific evidence. Additionally, as the agencies make BSE-related
documents available for public comment, or otherwise solicit public
response, the agencies share and discuss information received.
Of recent note is information solicited and received by FSIS
between July and October 2006 regarding the 2005 updated Harvard Risk
Assessment of BSE associated with public health exposure. FSIS
discussed with APHIS and FDA public comments it received in response to
a notice of availability (71 FR 39282-39283, Docket No. FSIS-2006-0011,
published in the Federal Register July 12, 2006) and a public technical
meeting regarding the risk assessment and the potential of BSE exposure
and animal health. APHIS has taken relevant comments received into
consideration with regard to its risk assessment for this proposed
rule.
III. Commodities Covered by This Proposed Rule
This rule would amend the APHIS regulations as they apply to the
importation of the following commodities from BSE minimal-risk regions:
Live bovines;
Blood and blood products derived from bovines;
Small intestine, other than the distal ileum, derived from
bovines; and
Casings derived from bovines.
This part of the Supplementary Information section of this proposed
rule discusses the risks associated with each commodity, mitigations
that address the risk, and how we propose to amend the regulations to
allow the importation of these commodities.
A. Live Bovines
BSE Transmission
As noted above under ``Nature of BSE,'' oral ingestion of feed
contaminated with the BSE agent is the only documented route of field
transmission of BSE (Ref 2 and 3). Several steps must take place for
BSE to be transmitted to cattle in the United States from a bovine
imported live from another country. A BSE-infected bovine must be
imported into the United States; the infected bovine must die or be
slaughtered; tissues from that animal that contain the infectious agent
must be sent to a rendering facility; the infectivity present in these
tissues must survive inactivation in the rendering process; the
resulting meat-and-bone meal containing the abnormal prion protein must
be incorporated into feed; and this feed must be fed to cattle at a
level adequate to infect the cattle. (The amount of infectious material
required in feed for cattle to become infected is dependent on the age
of the cattle; younger cattle are more susceptible to BSE and require
less BSE-contaminated feed to become infected (Ref 4).)
Proposed Regulatory Change; OIE Guideline
The first step that must occur for BSE to be transmitted to cattle
in the United States from a BSE-infected bovine imported live into this
country from a BSE minimal-risk region is that such a bovine must enter
the United States. Under our current regulations, the risk of such a
bovine entering the United States is already very low because of the
APHIS regulatory standards for importation from BSE minimal-risk
regions.
In this document, we are proposing to allow the importation of live
bovines from BSE minimal-risk regions if the animals were born on or
after a date determined by APHIS to be the date on and after which a
ruminant-to-ruminant feed ban in the region of export has been
effectively enforced. Experience around the world in countries with BSE
has demonstrated that feed bans are
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effective control measures, and that the incidence of BSE worldwide
continues to decline because of these measures (Ref 5 and 6).
Because of the demonstrated efficacy of an effectively enforced
feed ban in reducing the possibility of exposure of cattle to the BSE
agent, the World Organization for Animal Health (OIE) provides
guidelines for trade in live cattle from regions that have reported BSE
if such regions have an effective feed ban in place, provided the
cattle were born after the date when the feed ban was effectively
enforced (OIE Terrestrial Animal Health Code, Chapter 2.3.13). The
condition in this proposed rule for the importation of live bovines
from BSE minimal-risk regions is consistent with the OIE guideline.
Importance of a Feed Ban in Reducing the Likelihood of BSE Transmission
By eliminating transmission, an effective feed ban reduces the
possibility of the existence of infected animals in a given cattle
population, which in turn reduces even further the chances of healthy
animals being exposed to the BSE agent via subsequent recycling of
infectivity.
Experience in the United Kingdom demonstrates that implementation
of a ruminant-to-ruminant feed ban causes BSE prevalence to decrease.
Animal feed restrictions were implemented in the United Kingdom in
1988, when the use of ruminant meat-and-bone meal (MBM) in ruminant
animal feed was banned. In September 1990, the use of specified bovine
offals was banned for use in any animal feed. This ban prohibited the
use in any animal feed of bovine tissues with the highest potential
concentration of infectivity. In 1994, the use of mammalian protein--
not just ruminant protein--was banned from ruminant feed. In 1996,
feeding of any farmed livestock, including fish and horses, with
mammalian MBM was completely banned. As a result of reducing the
recycling of infectivity, the annual incidence of BSE fell by 99.4
percent, from 36,680 in 1992 to 203 in 2005 (Ref 7).
Although the data presented in the following figure and table
represent the specific situation in Great Britain during the years
identified in the graph, there is every reason to expect downward
pressure on the prevalence of BSE in any country that implements a feed
ban.
[GRAPHIC] [TIFF OMITTED] TP09JA07.002
Figure 1. Confirmed cases in cattle in Great Britain born after feed
ban implementation. Note: The first feed ban was implemented in the
summer of 1988 (before fall calving) (Ref 8).
The raw data that provided the basis for Figure 1 are reproduced in
Table 1:
Table 1.--Confirmed Cases in Great Britain by Year of Birth, Where Known
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Year Cases
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1974....................................................... 1
1975....................................................... 0
1976....................................................... 2
1977....................................................... 10
1978....................................................... 6
1979....................................................... 41
1980....................................................... 102
1981....................................................... 262
1982....................................................... 1,394
1983....................................................... 4,463
1984....................................................... 8,069
1985....................................................... 11,071
1986....................................................... 19,752
1987....................................................... 36,935
1988....................................................... 22,266
1989....................................................... 12,748
1990....................................................... 5,748
1991....................................................... 4,779
1992....................................................... 3,531
1993....................................................... 2,997
1994....................................................... 2,182
1995....................................................... 1,100
1996....................................................... 67
1997....................................................... 45
1998....................................................... 37
1999....................................................... 24
2000....................................................... 6
2001....................................................... 5
2002....................................................... 1
Unknown birth year......................................... 43,342
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Total.................................................. 180,986
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(Ref 8)
Determining a Date of Effective Enforcement of a Feed Ban
Under the current regulations, one of the conditions that must be
met for a region to be recognized by APHIS as a BSE minimal-risk region
is that the region must have in place a ruminant-to-ruminant feed ban
that is effectively enforced. APHIS bases its determination
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of whether a region has in place an effectively enforced ruminant-to-
ruminant feed ban on an evaluation of the laws and regulations in place
in the region, the adequacy of the infrastructure to implement the
regulations, and the evidence of effective implementation and
monitoring (i.e., compliance inspections, training and records).
We are proposing in this rule to require that bovines from a BSE
minimal-risk region intended for importation into the United States
have been born on or after the date determined by APHIS to be the date
of effective enforcement of a ruminant-to-ruminant feed ban in the
region of export. In determining the date of effective enforcement of a
feed ban, we believe it is first necessary to consider the amount of
time, if any, between the regulatory establishment of the feed ban in
the region of export and the practical implementation of the ban. The
period of practical implementation can be determined by evaluating
implementation guidance and policies, such as allowing grace periods
for certain aspects of the industry. In addition, the time necessary
for initial education of industry and training of inspectors must be
considered.
After the practical implementation period is determined, we believe
it is then necessary to consider whether, in the region being
evaluated, an additional period of time was needed to allow most feed
products to cycle through the system, given the management practices in
the country.
Feed Ban in Canada
In conjunction with the rulemaking that resulted in the January
2005 final rule, APHIS conducted a risk analysis in 2003 and 2004 to
evaluate the BSE risk from ruminants and ruminant products imported
from regions presenting a minimal BSE risk, and to evaluate whether
Canada could be classified as a minimal risk region (Ref 9 and 10). As
part of the risk analysis, USDA evaluated a series of measures
introduced in Canada to prevent the feeding of ruminant proteins to
ruminant animals. USDA considered the compliance activities reported by
the Canadian Food Inspection Agency (CFIA) as well as epidemiological
information in concluding that compliance with the feed ban was good,
and that the feed ban was effectively enforced. In response to the
detection of two additional BSE cases in Canada, in January 2005, USDA
reassessed the oversight of Canada's feed ban. Based on review of
inspection records and on-site observations, USDA confirmed that Canada
has a robust inspection program, that overall compliance with the feed
ban is good, and that the feed ban is reducing the risk of transmission
of BSE in the Canadian cattle population (Ref 11). In addition to the
USDA audit of the Canadian feed ban, CFIA conducted its own review in
2005, and concluded that the ban is providing an effective mitigation
that is contributing to reducing the BSE risk in the country to an
extremely low level (Ref 12).
Components of the Canadian Feed Ban
Canada's feed ban came into force on August 4, 1997, when CFIA
issued regulations prohibiting the use of mammalian protein in ruminant
feeds as follows: ``Any feed that is, or that contains any prohibited
material originating from a mammal (with exceptions) shall not be fed
to a ruminant'' (Ref 12). The ban provided exceptions for milk, blood,
gelatin, and protein derived solely from porcine or equine sources.
Canadian feed regulations also prohibit the use of plate waste and
poultry litter in ruminant feed.
The feed ban includes requirements for labeling and recordkeeping.
Feed manufacturers, renderers, retailers, and livestock producers must
document their production procedures and feeding practices to verify
their compliance with the feed ban. Feed manufacturers must keep
records regarding the composition, identity, and distribution of all
feeds for the species named in the regulations. Renderers, feed
manufacturers and farmers must take steps to prevent the material
prohibited under the feed ban from being incorporated into or
contaminating ruminant feed. To prevent the misfeeding of prohibited
material to ruminants, users of livestock feed must keep labels or
invoices from all purchased feeds containing prohibited material; these
records must be kept for 2 years.
Measures Required at Rendering Facilities
The rendering industry is important in reducing the risk of
transmitting BSE infectivity, not only because of its role in
inactivation of the BSE agent, but also because it serves as a control
point for the redirection of ruminant protein away from cattle feeds.
Since 1998, all Canadian rendering facilities have been subject to
annual inspections and permitting (Ref 11). Three types of permits are
issued, allowing companies to produce either non-prohibited material
only, prohibited material only, or both non-prohibited and prohibited
material (Ref 11). Permitting requires implementation of manufacturing
controls (such as Good Manufacturing Practices and a risk-based Hazard
Analysis and Critical Control Point (HACCP) plan, recordkeeping (for
both production and distribution) and labeling requirements (i.e., ``Do
not feed to cattle, sheep, deer or other ruminants'' on labels and
invoices for all prohibited material) directed at preventing cross-
contamination or misfeeding.
Measures to Prevent Contamination of Feed
As mentioned earlier, renderers, feed manufacturers, and farmers
must take steps to prevent material prohibited under the feed ban from
being incorporated into or contaminating ruminant feed. Such
incorporation or contamination can be prevented by having dedicated
processing lines or facilities that use only prohibited or non-
prohibited material. If a facility handles both prohibited and non-
prohibited material, procedures must be established and maintained to
conduct flushing and/or clean-out between batches of product to prevent
cross-contamination.
The feed industry in Canada has also taken a number of aggressive
steps to comply with measures in the feed ban designed to reduce the
risk of contamination of feed for cattle with prohibited material.
Recently both the United States and Canada reviewed the changes made to
industry procedures and governmental inspectional oversight. (Ref 11
and 12). These reviews demonstrated, for example, that the Canadian
rendering industry has moved toward establishment of dedicated
facilities or dedicated processing lines within rendering facilities
(Ref 11 and 12). Of the 29 rendering facilities in Canada, 6 handle
both prohibited and non-prohibited material, compared to 13 that
initially handled both types of material. Of the six, four use
dedicated processing lines (Ref 12). According to CFIA's reports, the
feed manufacturing industry has also moved toward dedicated facilities.
According to the most recent review (March 2005), 94 (17%) of the 550
commercial feed mills in Canada handled prohibited material and also
manufactured feeds for ruminants, compared to 120 (22%) in 2002-2003
(Ref 12). These actions, in addition to the labeling and recordkeeping
requirements for all products containing prohibited material, decrease
the likelihood of contamination of ruminant feeds with prohibited
material.
[[Page 1107]]
Inspections and Compliance
Following establishment of the feed ban in 1997, CFIA broadened its
communications with the affected industries and implemented an
inspection program. This program was introduced in phases. From 1997-
2000, inspection activities focused on integrating the feed ban's
requirements into standard industry practices. For example, starting in
1998, rendering facilities were required to pass an annual inspection
in order to renew their permits to operate. In 2000 and 2001, CFIA
modified its compliance programs by increasing the frequency of
inspections of commercial feed mills from once every 3 years to every
year and by continuing the annual inspection and permitting of all
rendering facilities. Since 2002, CFIA has been conducting annual
inspections of all rendering and commercial feed mill facilities and
some ruminant feeders and retail feed distributors.
Recent Regulatory Amendments in Canada
In June 2006, CFIA issued amendments to the feed ban regulations in
Canada to enhance the feed ban in that country. Those amendments
require, among other things, the removal of potentially BSE-infective
tissues (specified risk materials, or SRMs) from all animal feeds, pet
food, and fertilizer. The amendments will not be effective until July
12, 2007, and, therefore, they are not included in this discussion.
Date of Effective Enforcement of Ruminant-to-Ruminant Feed Ban in
Canada
For the purposes of this proposed rule, we have determined a date
we consider to be the date of effective enforcement of ruminant-to-
ruminant feed ban in Canada, the only country currently recognized by
APHIS as a BSE minimal-risk region. Although the regulations
establishing the feed ban in Canada came into force upon their
publication in August 1997, full implementation and effective
enforcement was a gradual process. In determining a date when the feed
ban could be considered to be effectively enforced, we carefully
considered information drawn from the epidemiological investigations to
date and the reports noted above under the heading ``Feed Ban in
Canada.''
From the outset, CFIA recognized that a phase-in period would be
required before prohibited materials that were already in feed channels
would be exhausted and labeling and recordkeeping requirements would be
met. CFIA estimated that it would take approximately 30 days for feed
mills and retailers to use up and distribute existing supplies of
``old'' product; 60 days to add a caution statement to the necessary
documents; and 60 days for farms to use up their stores of ``old''
product (Ref 13). All retailers were given until September 3, 1997, to
use or distribute feed already produced. Feed manufacturers received a
grace period until October 3, 1997, to comply with labeling
requirements. Livestock producers were given a grace period until
October 3, 1997, to use the feed manufactured and purchased prior to
the feed ban. However, feed tracing associated with one of the Canadian
BSE cases suggested that feed produced prior to implementation of the
feed ban may have been available at feed stores beyond the grace
period. Therefore, a period of 6 months has been estimated for
practical implementation of the feed ban, making February 1998 a more
reasonable baseline from which to assess effective implementation (Ref
13).
However, based on our evaluation of the situation in Canada, we
believe that the feed ban there achieved full efficacy only at some
time after the practical implementation period. We believe that
additional time was necessary to allow for most old feed to cycle
through and out of the system. To evaluate the duration of this time
frame in Canada, we considered on-farm feeding practices in that
country. Most cattle producers in Canada do not hold extensive long-
term inventories of purchased feeds on their farms due to limited
storage space and expense. These practices make it unlikely that feeds
containing prohibited material were available for more than a few
months after practical implementation of the feed ban. The possible
exception is mineral mixes produced before the feed ban that may have
contained ruminant MBM. Mineral mixes are typically fed daily but in
very small quantities (grams rather than pounds per day) (Ref 14 and
15) and may be stored on the farms for longer periods of time. We
believe, however, that they are not likely to have been purchased for
use for periods longer than a year.
Both beef and dairy cattle production can be considered to have an
annual, or 12-month, calving cycle, in that a cow on a beef or dairy
farm will generally give birth once a year. Calving occurs among cows
year-round on Canada's dairy farms to ensure a constant supply of fluid
milk. Most dairy farms in Canada produce their own forage and grains
(Ref 16). Forages produced seasonally are stored on the farm to provide
the basis for the diet fed to dairy cattle of all ages and production
stages. Protein supplements and specialty feeds, such as mixed calf
feeds, are typically purchased commercially in quantities to be fed out
over a few months, because these supplemental feeds are expensive to
purchase, costly to store, and may deteriorate with time. Typically,
purchased feeds are available throughout the year with only moderate
price variations, so there is little incentive for producers to
maintain large on-farm inventories (Ref 17). The Canadian beef
production cycle is very seasonal in that cows are bred so that calving
occurs at the same time of year, generally in the spring (Ref 16).
Producers are not likely to carry extensive feed inventories from
season to season (Ref 16 and 18). Therefore, in both Canadian dairy and
beef production, a 12-month period would generally be sufficient to
allow purchased feed products that may contain MBM to be completely
used.
We arrived at our determination that the Canadian feed ban was
fully implemented and effectively enforced as of March 1, 1999, by
adding this additional 12-month period to the 6-month ``practical
implementation period'' following the August 1997 establishment of the
feed ban in Canada. We believe that prohibiting the importation of
bovines from Canada that were born before March 1, 1999, would provide
an appropriate additional mitigation to what is an already extremely
low risk of the introduction of BSE from Canada.
Assessment of Risk From Cattle of Canadian Origin
As noted above, Canada is currently the only country recognized by
APHIS as a BSE minimal-risk region. In conjunction with this
rulemaking, we have conducted an assessment that both quantitatively
and qualitatively addresses the potential BSE risk of importing live
bovines from Canada.
Arriving at an estimation of risk begins with laying out the risk
pathway (a series of occurrences or steps necessary for disease to
enter and become established). Next, the likelihood of each of the
multiple steps must be estimated. In our risk assessment, although we
analyze the likelihood of each individual step in the process
occurring, we interpret its significance in the context of the entire
process.
BSE Prevalence in Canada
One of the conditions for being recognized by APHIS as a BSE
minimal-risk region is that the region have in
[[Page 1108]]
place and maintain risk mitigation measures adequate to prevent
widespread exposure and/or establishment of the disease. In classifying
Canada as a BSE minimal-risk region in our January 2005 final rule, we
determined that such mitigation measures are in place and are
maintained in Canada. For the risk assessment for this proposed rule,
we have made a quantitative estimate of the prevalence of BSE among
Canadian cattle, using data available to us through August 15, 2006,
and have used this estimate as part of our quantification of the risk
of transmission of BSE to U.S. livestock as a result of this rule. Our
estimate indicates a very low level of BSE prevalence in Canada.
From the time of detection of the first native case of BSE in
Canada in 2003, nine cases of Canadian-born BSE-infected cattle have
been identified, as follows:
In May 2003, BSE was confirmed in a cow in the Province of
Alberta. The cow was determined to have been born in March 1997.
In December 2003, BSE was confirmed in a cow of Canadian
origin in Washington State. The cow was determined to have been born in
April 1997.
In January 2005, BSE was confirmed in two cows in the
Province of Alberta. One of the cows was determined to have been born
in October 1996. The other cow was determined to have been born in
March 1998.
In January 2006, BSE was confirmed in a cow in the
Province of Alberta. The cow was determined to have been born in April
2000.
In April 2006, BSE was confirmed in a cow in the Province
of British Columbia. The cow was determined to have been born in April
2000.
In June 2006, BSE (of a different phenotype than that in
the other diagnoses) was confirmed in a cow in the Province of
Manitoba. The cow was determined to have been born in approximately
1991.
In July 2006, BSE was confirmed in a cow in the Province
of Alberta. The cow was determined to have been born in April 2002.
In August 2006, BSE was confirmed in a cow in the Province
of Alberta, which, according to preliminary information available to
APHIS, was born in 1996.
Of the nine Canadian-born cows diagnosed with BSE, three were born
after March 1, 1999, the date we are proposing as the date of effective
enforcement of a ruminant-to-ruminant feed ban in Canada. This is not
unexpected, nor do we consider such diagnoses in any way to undercut
our conclusion that March 1, 1999, can be considered the date of
effective enforcement of the feed ban in Canada. Experience worldwide
has demonstrated that, even in countries with an effective feed ban in
place, BSE has occurred in cattle born after a feed ban was
implemented. No regulatory effort can ensure 100 percent compliance.
Isolated incidents, such as feed made from non-prohibited material
being contaminated with prohibited material during processing, can
occur due to human error. However, such isolated incidents are not
epidemiologically significant and do not contribute to further spread
of BSE, especially when considered in light of the entire risk pathway
and its attendant risk mitigations.
Based on our determination that Canada has had in place since March
1, 1999, an effectively enforced feed ban that continues at a robust
level, and the demonstrated effectiveness of a feed ban in reducing the
likelihood of BSE transmission, our expectation is that the prevalence
of BSE in Canada will continue to decline from its present minimal
level. As we discuss in our risk assessment for this rulemaking, such a
decline would decrease any possibility of BSE being introduced into the
United States by Canadian cattle, and therefore decrease the negligible
risk of the spread of BSE to U.S. cattle.
However, in our risk assessment, we also evaluated scenarios that
are less likely than the one we expect, including no decrease in BSE
prevalence in Canada over the next 20 years. Even using this extremely
unlikely scenario, which would mean the continued detection of
additional BSE--infected Canadian cattle born after March 1, 1999, our
conclusion is that the BSE risk to U.S. livestock due to implementation
of this proposed rule would be negligible.
We used a mathematical model to approximate the proportion of BSE--
infected, but not necessarily clinically diseased, cattle in Canada.
Our mathematical model is discussed in detail in the risk assessment we
conducted in conjunction with this proposed rule. Using this
mathematical model, we estimated that the prevalence of BSE in Canada,
based on data available as of August 15, 2006, is 6.8 animals per every
10 million adult cattle. (The current adult cattle population in Canada
is approximately 5.9 million animals.) In comparison, the same model
was recently used to estimate the prevalence of BSE in the United
States. The findings of that analysis supported a conclusion that BSE
prevalence in the United States is below 1 case per million adult
cattle, with a most likely estimate for the United States of 1 infected
animal per 10 million adult cattle (Ref 19).\2\
---------------------------------------------------------------------------
\2\ The current adult cattle population in the United States is
approximately 42 million animals.
---------------------------------------------------------------------------
Our estimate of BSE prevalence in Canada incorporates the United
Kingdom data on the effectiveness of a feed ban. However, it should be
noted that the actual prevalence of BSE in Canada is most probably
lower than our estimate. This is because, where we needed to
incorporate simplifying assumptions in our calculations, due to data
uncertainty or the constraints of the mathematical model itself, we
chose assumptions that, if anything, erred on the side of assuming
greater prevalence.
An example of this is the data we used related to the diagnosis of
BSE in a cow of Canadian origin in Washington State in December 2003.
Although we incorporated that case into the number of Canadian-born
cattle that have been diagnosed with BSE--which increased the estimate
of overall BSE prevalence in Canada--we did not numerically increase
the total Canadian cattle population by including in that country's
number of cattle those animals of Canadian origin that had been
imported into the United States and that tested negative for BSE. If
those animals had been included in the figure used for the total
Canadian cattle population, the estimated BSE prevalence would have
been reduced. Additionally, we did not include in our calculations cows
that were tested in Canada with negative results as part of
investigations conducted after the diagnosis of BSE in cows of Canadian
origin.
Projected Future Prevalence Rates in Canada
Our qualitative conclusion is that, due to the feed ban in Canada,
BSE prevalence rates will progressively decline in that country over
the next 20 years. However, because we could not provide an accurate
prediction for the rate at which we would expect prevalence to
decrease, we did not attempt to numerically represent the actual
expected annual release over the 20 years of our analysis. For example,
it would be guesswork to attempt to estimate exactly what the
prevalence of BSE in Canada will be in the year 2012 and to use that
figure in our mathematical model, even though, qualitatively, we
consider it very likely that the prevalence will be less than it was in
August 2006. Therefore, when creating a scenario for our quantitative
[[Page 1109]]
calculations, we assume that the prevalence of BSE in Canada will
remain the same for each of the next 20 years as it was in August 2006.
BSE Risk From Live Bovines From Minimal-Risk Regions
BSE prevalence, however, is just one factor that must be considered
when determining the risk of BSE transmission. Requiring, as this rule
would do, that live bovines imported into the United States from a BSE
minimal-risk region be born after the date of effective enforcement of
a feed ban, would mitigate the risk of exposure of U.S. livestock to
the BSE agent. As discussed above, such a requirement would be
consistent with the OIE recommendation to allow trade in live cattle
from regions that have reported BSE if such regions have an effective
feed ban in place.
Moreover and importantly, however, if an infected bovine from a BSE
minimal-risk region were to be imported into the United States, for
that bovine to transmit infection to a U.S. cow, each in a series of
additional mitigations against such transmission would have to fail or
be breached. The effect of such mitigations, discussed in greater
detail in our risk assessment, was also discussed in the APHIS risk
assessment that was conducted for our January 2005 final rule
establishing the category of BSE minimal-risk regions (Ref 9). In the
risk assessment for this rulemaking, we assess with regard to imports
of live bovines from Canada (currently the only region recognized by
APHIS as a BSE minimal-risk region), using updated data and
assumptions, the likelihood of that series of mitigations failing if
this proposed rule were implemented.
The mitigations that would have to be breached include:
Slaughter controls and dead animal disposal;
Rendering inactivation;
Feed manufacturing and use controls;
Biologic limitations to susceptibility.
As discussed in our risk assessments, these mitigations work in a
series and are multiplicative in their risk-reduction effects; i.e.,
however small the chances that BSE infected material would make it past
the first mitigation, the likelihood of the material eventually
infecting a U.S. animal would shrink to a significantly smaller level
with each subsequent mitigation. The risk assessment for this proposed
rule simulated the impact of these mitigations on the likelihood of
exposure, establishment, and spread of BSE infectivity in the United
States if this proposed rule were to be implemented, and quantified
those impacts where possible.
Both qualitative and quantitative methods were used in the exposure
assessment to evaluate the likelihood of exposing susceptible animals,
given the release of infectivity via imported bovines. The most likely
scenario of the release assessment included the assumption that the
prevalence of BSE in the standing adult cattle population in Canada
will continuously decrease. As explained earlier, this expected
decrease could not be incorporated into the quantitative methods and,
therefore, the possible exposures were assessed qualitatively. This
qualitative exposure assessment of the most likely scenario of the
release assessment--decreasing Canadian prevalence--indicates that the
likelihood of BSE exposure and establishment in the U.S. cattle
population as a consequence of infectivity in the United States
introduced via imports from Canada is negligible.
Even though we concluded that it is most likely that Canadian
prevalence will decrease, we also considered the less likely scenarios
and quantitatively analyzed the impact of an assumed constant
prevalence in Canada to simulate potential BSE exposure in U.S. cattle.
The quantitative model used in the exposure assessment and its results
include the much less likely scenario that Canadian BSE prevalence
remains constant through 2026. Because we believe this situation is
much less likely to occur, we have concluded that prevalence and
release and, therefore, the number of infected animals occurring in the
United States would be lower than the values derived from the
quantitative exposure model.
Using a base-case assumption that the August 2006 BSE prevalence
rate in Canada remains the same over the next 20 years, our
quantitative model predicts the importation of a total of approximately
19 infected bovines over that period under the provisions of this
proposed rule. (As discussed above, however, as a result of
implementation of an effective feed ban, we expect the already low
prevalence in Canada to decline over time.) The model further predicts
that, if 19 infected bovines were imported over a 20-year period,
approximately 2 U.S. animals would consequently be infected during that
period due to such importations. (For purposes of comparison, the
standing U.S. cattle population in 2006 is approximately 97 million
animals, which would be multiplied over a 20-year period.)
Of the total number of infected animals predicted over the next 20
years (i.e., the total of infected imported animals and infected U.S.
cattle), only a small fraction (numerically, fewer than 1 (0.67)) would
live long enough to develop clinical signs and be likely to contain
significant levels of infectivity, due to the lengthy incubation period
for BSE and the fact that most U.S. cattle are slaughtered before
reaching the age when infectivity is manifested in clinical signs. Even
assuming the unlikely event of no decline in the Canadian BSE
prevalence rate over the next 20 years, the predicted results from our
risk assessment indicate that, given the nature of BSE and the
mitigations in place that prevent its transmission in the United
States, it is highly unlikely that BSE would become established in the
United States due to implementation of this proposed rule. And, as
noted, we believe the quantitative component of our risk assessment
overestimates the likely number of infected animals that would be
present in the United States over the next 20 years as a result of
importing cattle from Canada under the provisions of this proposed
rule.
Sensitivity Analysis to Account for Uncertain Parameters
In reaching the conclusions discussed above, we used what we
consider base-case conditions. In order to account for uncertainty,
however, and to allow for possible divergence from those expected base
case conditions, we have also done ``sensitivity analyses.''
Sensitivity analysis evaluates the degree to which changes in the data
used in a model affect the model's results. Even assuming a combination
of pessimistic values (i.e., those generating greater risk than base-
case conditions) for every model parameter used, we concluded that
factors mitigating BSE risk in the United States (e.g., at slaughter,
during rendering, regarding feed manufacturing and use, and biological
factors (the effect of an animal's age on its BSE susceptibility))
would prevent BSE amplification in the United States, and that any
imported infectivity would disappear from the U.S. cattle population. A
detailed discussion of the sensitivity analyses is contained in our
risk assessment.
Proposed Regulatory Changes Regarding Live Bovines
Based on the information available to us, we believe that allowing
the importation from a BSE minimal-risk region of live bovines born on
or after the date of effective enforcement of a ruminant-to-ruminant
feed ban in the region of export would continue to
[[Page 1110]]
protect against the introduction and spread of BSE in the United
States, while removing unnecessary restrictions on the importation of
such animals, and are proposing to amend Sec. 93.436(a) of the
regulations to allow such importations. The regulations would specify
March 1, 1999, as the date of the effective enforcement a ruminant-to-
ruminant feed ban in Canada, currently the only country recognized by
APHIS as a BSE minimal-risk region.
We would remove the requirement in Sec. 93.436(a)(1) of the
current regulations that live bovines imported from BSE minimal-risk
regions be less than 30 months of age when imported into the United
States and when slaughtered. We would additionally remove the
requirement in Sec. 93.436(a)(1) and (b)(1) that such bovines not be
pregnant when imported into the United States and the provisions in
Sec. 93.436 that limit importation to those bovines imported either
for immediate slaughter or for movement to a feedlot and then to
slaughter.
Identification and Movement of Live Bovines From BSE Minimal-Risk
Regions
Section 93.436 also includes movement restrictions to help ensure
that all bovines imported from BSE minimal-risk regions are slaughtered
in the United States before they are 30 months of age. If we remove the
requirement that the bovines be less than 30 months of age when
slaughtered, certain of the movement restrictions in Sec. 93.436 would
no longer be necessary. We are proposing to remove those restrictions
that would be unnecessary, as discussed below.
Permanent Identification of Bovines Moving to Other Than Immediate
Slaughter
Current Sec. 93.436(b)(3) requires that bovines imported from a
BSE minimal-risk region for other than immediate slaughter (i.e., for
movement to a feedlot in the United States and then to slaughter) be
permanently and humanely identified before arrival at the port of entry
with a distinct and legible mark identifying the exporting country. The
permanent identification required by the current regulations can be
either a freeze brand, a hot iron brand, or some other method of
identification applied to each animal's right hip. In this proposal, we
retain the requirement that bovines imported from a BSE minimal-risk
region for other than immediate slaughter be permanently marked to
identify the exporting country. In the event a bovine from a BSE
minimal-risk region were to be diagnosed in the United States with BSE,
such marking would expedite initial identification of the animal's
country of export. Traceback to the animal's premises of origin would
then be facilitated by the animal's unique individual identification,
which is currently required under Sec. 93.436(b)(4) and which would
continue to be required under the provisions of this proposed rule.
However, we are proposing to specify an alternative to the requirement
that the animal be marked on the right hip by freeze brand, hot iron,
or some other method. (The current regulations allow in a general way
for alternative means of identification with the Administrator's
approval, but don't include any specifications for such alternative
means of identification.)
We are proposing to specify in Sec. 93.436(b)(2) that, in addition
to the options for permanent identification already included there, the
permanent identification of bovines imported from BSE minimal-risk
regions can be in the form of a tattoo on the inside of one ear of each
animal that identifies the exporting country. Bovines imported from
Canada that are identified by tattoo would have to be identified with
the letters ``CAN''.
We proposed in our November 2003 proposed rule to limit the
country-of-export permanent identification to a tattoo. However,
comments from the public on that proposed rule expressed concern that
tattoos might become illegible over time, could not be effectively
monitored without restraining the animal, might become obscured by dirt
and hair, and are not readily visible--particularly on animals with
dark-skinned ears. In our January 2005 final rule, we agreed that
tattoos might not provide readily visible identification of the country
of origin of bovines, and set forth instead the requirement described
above.
We continue to believe that tattoos might not be the most readily
visible means of identification of live animals in groups of animals.
However, as noted above, the purpose of requiring permanent
identification of the animal's country of export in this proposed rule
is to expedite initial identification of an animal's country of export
in the event the animal is diagnosed with BSE. Such a diagnosis cannot
be confirmed on a live animal. Once the animal has been euthanized or
has otherwise died, an ear tattoo would be an effective means of
identification.
Sealing of Means of Conveyance and Movement as a Group; Bovines
Imported for Movement to a Feedlot
We are proposing to remove the requirement in Sec. 93.436(b)(6)
that live bovines imported from a BSE minimal-risk region for feeding
and then slaughter be imported in a means of conveyance sealed in the
region of origin with seals of the national government of the region
origin, and be moved directly from the port of entry as a group to a
feedlot identified on the APHIS movement documentation currently
required for such animals. Under this proposed rule, the importation of
bovines from a BSE minimal-risk region would not be dependent on
whether the animals are less than 30 months of age when imported and
when slaughtered, but, rather, would be governed by whether the animals
were born on or after the date of effective enforcement of a ruminant-
to-ruminant feed ban in the exporting region. Once imported, the
bovines would be handled in the same way as U.S. bovines. Therefore, we
do not believe it would be necessary to retain the provisions in the
regulations that were designed to help ensure that bovines from a BSE
minimal-risk region are moved directly to a feedlot and are handled as
an easily identifiable group.
Sealing of Means of Conveyance and Movement as a Group; Bovines
Imported for Immediate Slaughter
We are also proposing to remove the requirement in Sec.
93.436(a)(6) that the bovines imported from BSE minimal-risk regions
for immediate slaughter be slaughtered as a group. However, we would
continue to require that bovines from Canada imported for immediate
slaughter be moved directly as a group from the port of entry in a
sealed means of conveyance. We would require that the means of
conveyance be sealed at the port of entry with seals of the U.S.
Government, rather than requiring the sealing to occur in the region of
export with seals of the national government of the region of export,
as required in the current regulations. We explain our rationale for
these proposed provisions in the following paragraphs.
With regard to BSE, the purpose of requiring in the current
regulations that bovines from BSE minimal-risk regions that are
imported for immediate slaughter be moved to the slaughtering
establishment in a sealed means of conveyance is to guard against
diversion of any of the animals between the port of entry and the
slaughtering establishment, in order to ensure that the animals are
slaughtered as a group
[[Page 1111]]
before 30 months of age. Because this proposed rule would not require
that the animals be slaughtered before 30 months of age, there would be
no BSE-related reason to require sealing of the means of conveyance.
However, we believe it is necessary to continue to require sealing
of means of conveyance transporting bovines from Canada to immediate
slaughter as a mitigative measure against diseases other than BSE.
Cattle imported from Canada for immediate slaughter are not subject to
tuberculosis and brucellosis testing requirements that would otherwise
be applied to animals imported into the United States. Therefore, we
would continue to require that such cattle be moved directly to
slaughter in a sealed means of conveyance. (APHIS had been requiring
such sealing at the port of entry even before our November 2003
proposal regarding BSE. However, the requirement for sealing was being
done as APHIS policy, and was not specified in the regulations.)
Where Sealing Must Take Place
We are proposing to remove the requirement that the sealing of the
means of conveyance be done in the region of export. That requirement
was included in the January 2005 final rule in response to comments
from members of the public who expressed concern that requiring sealing
at the port of entry could be harmful to the welfare and quality of the
animals, due to delays at the port of entry. Under the provisions of
this proposed rule, however, we do not expect undue delays of shipments
at the port of entry. When a means of conveyance carrying bovines for
immediate slaughter arrives at the U.S. port of entry, APHIS inspectors
would confirm that the animals are as described on the certificate that
must accompany the animals being imported, but generally would not
require that the animals be offloaded from the means of conveyance.
Therefore, requiring that the sealing of the means of conveyance take
place at the port of entry would not cause measurable delay of the
shipment. Further, sealing at the port of entry rather than in the
region of export will reduce the time the animals will need to be
contained in a sealed means of conveyance and reduce the likelihood
that a seal will need to be broken between the time it is applied and
the arrival of the animals at a slaughtering establishment.
APHIS Form VS 17-130
Currently, Sec. 93.436(b)(8) requires that bovines imported from
BSE minimal-risk regions for movement to feeding and then slaughter be
accompanied from the port of entry to the feedlot by APHIS Form VS 17-
130 or other movement documentation deemed acceptable by the
Administrator, which must identify the physical location of the
feedlot, the individual responsible for the movement of the animals,
and the individual identification of the animal. Because, under this
proposed rule, bovines imported from a BSE minimal-risk region that are
not moved for immediate slaughter would not be limited to moving to a
feedlot and then slaughter, it would no longer be necessary to require
that the bovines be accompanied by a VS Form 17-130 that identifies the
feedlot of destination. The other necessary information on the VS Form
17-130-e.g., the individual responsible for the movement of the animals
and the individual identification of the animal-is already required on
the health certificate that must accompany the animals under Sec.
93.405. Therefore, we are proposing to remove the requirement that live
bovines imported from BSE minimal-risk regions for other than immediate
slaughter be accompanied by VS Form 17-130.
Transport From Feedlots to Slaughter
We are proposing to remove the requirement in Sec. 93.436(b)(9)
that the bovines imported from BSE minimal-risk regions for other than
immediate slaughter remain at a feedlot until transported from the
feedlot to a recognized slaughtering establishment for slaughter, and
we are proposing to remove the requirement in Sec. 93.436(b)(10) that
the bovines be moved directly from the feedlot to a recognized
slaughtering establishment in conveyances sealed at the feedlot with
seals of the U.S. Government. We are also proposing to remove the
requirement in Sec. 93.436(b)(11) that the bovines be accompanied from
the feedlot to a recognized slaughtering establishment by APHIS Form VS
1-27 or other movement documentation deemed acceptable by the
Administrator, identifying the physical location of the recognized
slaughtering establishment, the individual responsible for the movement
of the animals, and the individual identification of the animal. This
requirement would not be necessary because, under this proposed rule,
cattle imported for other than immediate slaughter would not be limited
to those less than 30 months of age that are moved directly to a
feedlot and then to slaughter.
Immediate Slaughter
Section 93.420 contains provisions regarding the importation of
ruminants from Canada for immediate slaughter, and applies to all
ruminants from Canada imported for immediate slaughter, including
sheep, goats, bovines, and other types of ruminants. However, as
applied to sheep, goats, and bovines, many of the requirements in Sec.
93.420 are duplicative of provisions set forth in Sec. 93.419 for
sheep and goats and in Sec. 93.436 for bovines. Because the majority
of provisions in the current regulations regarding the importation of
bovines and sheep and goats from Canada for immediate slaughter are
contained in Sec. 93.436 and Sec. 93.419, respectively, we are
proposing to rewrite Sec. 93.420 so that it applies only to ruminants
imported from Canada for immediate slaughter other than bovines, sheep,
and goats. Any provisions of current Sec. 93.420 that are still
applicable to bovines, sheep, and goats under this proposed rule and
that do not already appear in Sec. 93.436 or Sec. 93.419 would be
moved to those sections. 9 CFR 93.405.
In accordance with Sec. 93.405 of the regulations, bovines, sheep,
and goats imported from BSE minimal-risk regions must be accompanied by
a health certificate. Among the information that must be recorded on
the health certificate is the specific physical location of the feedlot
or recognized slaughtering establishment where the ruminants are to be
moved after importation. Because, under this proposed rule, bovines
imported from BSE minimal-risk regions would not be limited to moving
to a feedlot or slaughtering establishment, we are proposing to change
that provision in Sec. 93.405(a)(4) to refer to ``destination,''
rather than to ``feedlot or recognized slaughtering establishment.''
B. Bovine Blood and Blood Products
Blood and blood products can be divided into two main groups:
1. In addition to whole blood, those products derived from blood
that are composed of cells, such as red cell concentrate and platelets;
and
2. Plasma (that portion of blood that is cell-free) and products
derived from plasma, such as serum (plasma with fibrinogen and clotting
factors removed), clotting factors, immunoglobins and albumin (Ref 20).
Fetal bovine serum (FBS) is the most commonly imported blood-
derived commodity. FBS is serum derived from blood of bovine fetuses.
As serum, it is the cell-free portion of blood with fibrinogen and
clotting factors removed. It is used in tissue culture media,
[[Page 1112]]
including those used to produce pharmaceuticals and biological
products, such as vaccines, and cannot be derived synthetically.
BSE Risk Associated With Bovine Blood and Blood Products From BSE
Minimal-Risk Regions
Our January 2005 final rule did not include provisions for the
importation of bovine blood and blood products from BSE minimal-risk
regions. We considered it advisable at the time to continue to prohibit
the importation of blood and blood products from such regions (with the
exception of those commodities that were already allowed to be imported
for restricted use from BSE-affected regions under Sec. 95.4(b) and
(d)).
In consultation with FDA, we have continued to assess the risk of
BSE from blood and blood products from BSE minimal-risk regions. Based
on the conclusions of our assessment, we are proposing to amend the
regulations in Sec. 95.4 to allow the importation of blood and blood
products from such regions under specified conditions, which we discuss
below.
Consistent with the approach of the risk assessment conducted for
this proposed rule with regard to live animals and bovine small
intestine, the risk estimation for blood and blood products relies on a
comprehensive understanding of the multiple steps in the risk pathway.
Thus, to understand the likelihood of BSE spreading and becoming
established in the United States as a result of importing blood and
blood products from a BSE minimal-risk region (currently only Canada),
we examine the entire risk pathway. We evaluate the evidence from
research to date--including research that has not detected infectivity
in bovine blood and research in other species where infectivity has
been detected--in the context of this larger risk pathway. Analysis of
this risk pathway, discussed below, is the basis for our proposal to
allow, under specified conditions, the importation of blood and blood
products derived from bovines from BSE minimal-risk regions.
One of the conditions for being recognized by APHIS as a BSE
minimal-risk region is that the region have in place and enforce risk
mitigation measures adequate to prevent widespread exposure and/or
establishment of the disease, so that, even if one of the very few
infected bovines in a BSE minimal-risk region were a source of imported
blood or blood products, additional factors would act to further
diminish the likelihood of the BSE agent's entering the United States
in bovine blood or blood products.
Perhaps the most important factor is that, in research using
infected bovines, infectivity has not been detected in cattle blood or
any tested derivatives (Ref 21). This finding is applicable to clotted
blood and fetal calf blood, and to products derived from whole blood,
such as serum or buffy coat (the white cell fraction of centrifuged
whole blood). As noted below, research in other species with BSE or
other TSE agents has demonstrated infectivity in blood, and we use
these studies to further inform our risk assessment. In addition,
because blood components--such as FBS and bovine serum albumin (BSA)--
are used in the manufacture of vaccines, it is worthwhile to address
injection vs. oral consumption as a route of exposure.
Injection presents a different risk pathway than does oral
consumption of BSE-contaminated bovine materials. The route of exposure
can affect the risk of disease transmission. The relative efficiencies
of different transmission routes of BSE have been reported to be, in
decreasing order, intracerebral (injecting directly into the brain),
intravenous (injecting directly into a vein), intraperitoneal (injected
directly into the abdominal cavity), subcutaneous/intramuscular
(injecting below the skin and/or into a muscle), and oral. It is
estimated that the subcutaneous/intramuscular route of transmission
requires 10 times the dose of a TSE agent to cause infection as does
the intracerebral route and that oral/intragastric transmission
requires 10 times the dose needed for subcutaneous/intramuscular
transmission. In other words, injection of a BSE agent into an animal
is a more efficient way of transmitting the disease agent to that
animal than getting it into the animal through its food.
The difficulty in examining the possibility of BSE transmission
through injection is that BSE infectivity has not been detected in
unprocessed bovine blood. We generally avoid extrapolating from studies
of TSEs other than BSE in species other than bovines; however, in order
to consider the only available evidence, we elected to use such studies
as potential indicators of the behavior of BSE in cattle blood if,
contrary to current evidence, it were to be present at previously
undetectable levels. These studies are discussed in detail in our risk
assessment.
It is important to restate that no studies have demonstrated BSE
infectivity in bovine blood and that we considered studies that
involved TSEs other than BSE and species other than bovines. If,
contrary to current research, BSE infectivity were to be distributed in
bovine blood, research indicates that the BSE infectivity would likely
be highest in the cellular components of the blood. These cellular
fractions of the whole blood, both red and white cells, are excluded
from the blood when harvesting FBS and BSA for use in the preparation
of vaccines and drugs.
Another component of the pathway of interest consists of the ways
in which bovine blood that is collected might in some way become
contaminated with SRMs at the time of collection, particularly in a
slaughter environment. To guard against such possible contamination, it
would be necessary to collect the blood in a closed system (a system in
which the blood is conveyed directly from the animal in a closed
conduit to a closed receptacle) or in an otherwise hygienic manner.
Additionally, to prevent blood collected from a fetal calf from
becoming contaminated with SRMs, the uterus from a slaughtered dam
should be removed intact and taken to a separate area away from the
slaughtering area of the facility. Further, pithing or use of air
injection stunning devices at slaughter could cause macro-emboli from
higher risk tissues from the animal's central nervous system to be
introduced into the animal's circulatory system. Prohibiting the use of
these processes is necessary to prevent contamination of the blood.
Proposed Regulatory Changes Regarding Blood and Blood Products
Currently, the regulations in Sec. 95.4 specify that only the
following blood products for the following uses are eligible for
importation from any region listed in Sec. 94.18(a) (including (a)(1)
through (a)(3)), based on the fact that the manner in which they are
used makes it highly unlikely they will come in contact with ruminants
in the United States:
Under Sec. 95.4(b), serum derived from ruminants that
have been in any region listed in Sec. 94.18(a) may be imported into
the United States for scientific, educational, or research purposes if
the APHIS Administrator determines that the importation can be made
under conditions that will prevent the introduction of BSE into United
States. Such serum is allowed importation into the United States only
if it is accompanied by an import permit issued by APHIS in accordance
with 9 CFR 104.4 (a U.S. Veterinary Biological Product Permit), and
must be moved and handled as specified on the permit.
Under Sec. 95.4(d), serum albumin (a blood plasma
protein) derived from
[[Page 1113]]
ruminants that have been in any region listed in Sec. 94.18(a) may be
imported into the United States for use as an ingredient in cosmetics
(provided FDA import requirements are also met), if the person
importing the article obtains a United States Veterinary Permit for
Importation and Transportation of Controlled Materials and Organisms
and Vectors, which states the intended use of the article and the name
and address of the consignee in the United States.
All other serum and serum albumin from regions listed in Sec.
94.18(a) is prohibited importation into the United States.
The regulations in Sec. 95.4 regarding BSE do not specifically
reference blood and blood products other than those described above--
either to prohibit or to allow their importation--largely because
commercial interest in importing blood products from regions listed in
Sec. 94.18(a) has focused on serum and serum albumin. By policy,
however, APHIS has prohibited the importation of any blood and blood
products from Sec. 94.18(a) regions, other than those described above.
Based on our evaluation of the BSE risk associated with bovine
blood and blood products from BSE minimal-risk regions, we believe that
bovine blood and blood products may be imported from BSE minimal-risk
regions if properly protected against contamination. We are, therefore,
proposing the following changes to the regulations at Sec. 95.4(e).
In general, blood collected from bovines can be obtained in one of
three ways: It can be collected from an animal that has been
slaughtered, it can be collected from a live donor animal (similar to
human blood collection), and it can be collected from the fetal calf of
a bovine dam that has been slaughtered.
For all of the above three manners of collection, we would require
that the blood be collected in a closed system or in an otherwise
hygienic manner that prevents contamination of the blood with SRMs.
This requirement is necessary to ensure that the blood is not
contaminated after collection.
Prohibited Methods of Stunning
When a bovine is slaughtered as part of the process of blood
collection, we would require in Sec. 95.4(e)(1)(ii) and (e)(2)(ii)
that the slaughtered animal was not subjected to a stunning process
with a device injecting compressed air or gas into the cranial cavity,
or subjected to a pithing process. Either of those processes create the
possibility that macro-emboli from higher risk tissues from the
animal's central nervous system might be introduced into the animal's
circulatory system.
Fetal Calves
For blood collected from a fetal calf, we would require in Sec.
95.4(e)(2)(iii) that the uterus be removed from the slaughtered dam's
abdominal cavity intact and taken to a separate area sufficiently
removed from the slaughtering area of the facility to ensure that the
fetal blood is not contaminated with SRMs when collected.
Animal Health Requirements
Also, although it is extremely unlikely that any given bovine in a
BSE minimal-risk region would be infected with BSE, because of the
often undifferentiated clinical signs of BSE (i.e., clinical signs that
could be attributed to either BSE or some other disease(s)), we
consider it prudent to disqualify from importation into the United
States blood and blood products drawn from live bovines showing signs
of any type of disease. Therefore, we would require in Sec.
95.4(e)(1)(ii) and (e)(2)(ii) that bovines slaughtered as part of the
process of collection (e.g., when blood is collected directly from the
slaughtered animal or from the fetal calf of a slaughtered dam) have
passed ante-mortem inspection to ensure that the animals are clinically
normal and have no obvious signs of disease. If the blood is collected
from a live bovine donor, the donor animal must be free of clinical
signs of disease.
We are proposing to add language to Sec. 95.4 to prohibit the
importation of the blood and blood products and derivatives of blood
and blood products, except as specifically provided in Sec. 95.4. This
would codify current policy.
Required Certification
We would require in Sec. 95.4 that the shipment of blood or blood
products to the United States be accompanied by an original certificate
signed by a full-time salaried veterinary officer of the national
government of the region of origin, or issued by a veterinarian
designated by or accredited by the national government of the region of
origin, attesting that the veterinarian issuing the certificate was
authorized to do so. The certificate must state that the applicable
requirements of Sec. 95.4 have been met.
C. Small Intestine of Bovines
The requirement established in the January 2005 final rule for
removal of the entire small intestine of bovines from BSE minimal-risk
regions was consistent with the FSIS regulations at that time, which
govern the slaughter of animals in the United States for meat and meat
products for human consumption. The FSIS regulations also apply to
slaughtering establishments in other countries that wish to export meat
to the United States. FSIS regulations (9 CFR 327.2) provide that a
country can be considered eligible to export meat and meat products to
the United States only if it maintains a meat inspection program
equivalent to that of the United States. A country must demonstrate
``equivalence'' by implementing measures that provide the same level of
protection against food hazards as is achieved domestically. FSIS
conducts audits of eligible foreign countries' meat inspection systems
at least annually. At the time of our January 2005 final rule, FSIS
required that the entire small intestine be removed and be disposed of
as inedible, in order to ensure removal of the entire distal ileum.
Research Regarding BSE and the Gastrointestinal System of Cattle
As discussed in our risk assessment for this proposed rule, in
studies regarding the pathogenesis of BSE in the gastrointestinal
system of cattle experimentally and naturally exposed to the BSE agent,
no BSE infectivity was detected at any time in the esophagus,
reticulum, rumen, abomasum, proximal small intestine, proximal colon,
distal colon, and rectum (Ref 21). The studies demonstrated that, if
infectivity in intestinal tissues of bovines (other than distal ileum)
exists, it is below the level of detection by mouse bioassay (i.e., the
insertion of tissue with infectivity from a bovine into a mouse). Based
on these studies, we have concluded that intestine other than the
distal ileum is highly unlikely to contain epidemiologically
significant levels of infectivity, if any infectivity is present at
all.
These studies have been compelling to the international scientific
community, and the OIE has based international trade guidelines on the
likelihood that the distal ileum, but not the remainder of the bovine
intestine, is a potential source of BSE infectivity. The distal ileum
is the only portion of the bovine intestine for which OIE recommends
any trade restrictions because of BSE.
FSIS and FDA Regulations Regarding the Small Intestine
On September 7, 2005, FSIS published in the Federal Register an
interim final rule that allowed for use as human food, under certain
conditions, beef small intestine, excluding the distal ileum, derived
from cattle slaughtered in official U.S. establishments or in
[[Page 1114]]
certified foreign establishments in countries listed by FSIS in 9 CFR
327.2(b) as eligible to export meat products to the United States (Ref
22). FSIS also provided that it will permit casings derived from beef
small intestine, excluding the distal ileum, to be used as containers
of meat food products only if the casings are derived from cattle that
have been inspected and passed in an official U.S. establishment or a
certified foreign establishment.
Also on September 7, 2005, FDA published an interim final rule (Ref
23) and request for comments in which it provided that small intestine
is not considered a prohibited cattle material if the distal ileum is
removed by a qualifying procedure. FSIS imposed a similar requirement
in its interim rule.
The small intestine of cattle attaches at its most proximal end
(closest to the mouth) to the most distal (closest to the anus) chamber
of the ruminant stomach. The most proximal segment of small intestine
is the duodenum. Distal to the duodenum is the very long jejunum. The
duodenum and jejunum are used for natural beef casings. Distal to the
jejunum is the ileum, which is estimated to be 2- to 3-feet long (Ref
24). The distal-most portion of the ileum, or ``distal ileum,'' is
estimated to be 12- to 18-inches long. It attaches at the most proximal
portion of the large intestine, the cecum, at what is termed the
``ileocecal junction'' or ``ileocecal orifice.'' Just distal to the
ileocecal junction is the cecocolic junction.
FSIS and FDA have determined that the distal ileum can be
effectively removed from the rest of the small intestine (Ref 22 and
23). They have also determined that the remaining small intestine can
be used as human food if the distal ileum is removed (Ref 22 and 23).
To ensure complete removal of the distal ileum, both FSIS and FDA
require the removal of at least 80 inches of the uncoiled and trimmed
small intestine as measured from the cecocolic junction, unless the
processing establishment has demonstrated that an alternative method is
effective in ensuring complete removal of the distal ileum. Based on
bovine anatomy as described above, we concur that removal of at least
80 inches of the uncoiled and trimmed small intestine as measured from
the cecocolic junction will remove the distal ileum.
Proposed Regulatory Changes Regarding Bovine Small Intestine
In our January 2005 final rule, we provided in Sec. 94.19 that one
of the conditions for the importation of meat, meat byproducts, and
meat food products derived from bovines from BSE minimal-risk regions
is that the commodity have been derived from bovines from which the
SRMs were removed at slaughter. This same condition is set forth in
Sec. 95.4(g) with regard to offal derived from bovines from BSE
minimal-risk regions.
The regulations at Sec. 94.19 also require, in addition to the
removal of SRMs, the removal of the entire small intestine, even though
only part of the small intestine (the distal ileum) has been determined
to be an SRM.
Because it is possible to effectively separate and remove the
distal ileum from the remainder of a bovine's small intestine, we are
proposing to remove the requirements in Sec. 94.19(a)(2), (b)(2), and
(f) that bovine meat, meat byproducts, meat food products, and whole or
half carcasses intended for importation from BSE minimal-risk regions
be derived from animals from which the entire small intestine was
removed at slaughter. We would require instead only that SRMs have been
removed. (Under FSIS regulations, in effect, the distal ileum SRM
includes 80 inches of the uncoiled and trimmed small intestine as
measured from the cecocolic junction, unless the processing
establishment has demonstrated that an alternative method is effective
in ensuring complete removal of the distal ileum.) Similarly, we are
proposing to remove the importation condition in Sec. 95.4(g)(1)(i)
(which we are proposing in this document to redesignate as Sec.
95.4(h)(1)(i)) that offal derived from bovines from BSE minimal-risk
regions be derived from animals from which the small intestine was
removed, and would provide instead that the offal must have been
derived from bovines from which SRMs were removed.
D. Bovine Casings
Currently, Sec. 96.2(b) prohibits the importation of casings,
except stomachs, from bovines and other ruminants that originated in or
were processed in any region listed in Sec. 94.18(a), which includes
BSE minimal-risk regions. In Sec. 96.1, animal casings are defined as
intestines, stomachs, esophagi, and urinary bladders from cattle,
sheep, swine, or goats that are used to encase processed meats in foods
such as sausage.
As explained above, only the distal ileum of the small intestine of
bovines presents a BSE risk, and FSIS and FDA have established
procedures for effective removal of the distal ileum from the remainder
of the small intestine. There is no scientific evidence of BSE
infectivity in ruminant esophagi or urinary bladders.
Proposed Regulatory Changes Regarding Bovine Casings
Therefore, we are proposing to amend Sec. 96.2 of the regulations
to allow the importation of casings derived from bovines from BSE
minimal-risk regions if the casings are derived from that part of the
small intestine that is eligible for use as human food in accordance
with the requirements established by FSIS at 9 CFR 310.22 and FDA at 21
CFR 189.5 and 21 CFR 700.27. We are also proposing to allow the
importation from BSE minimal-risk regions of casings derived from
bovine esophagi and urinary bladders.
Executive Order 12866 and Regulatory Flexibility Act
This proposed rule has been reviewed under Executive Order 12866.
The rule has been determined to be economically significant for the
purposes of Executive Order 12866 and, therefore, has been reviewed by
the Office of Management and Budget.
Under the Animal Health Protection Act of 2002 (7 U.S.C. 8301 et
seq.), the Secretary of Agriculture is authorized to promulgate
regulations if he or she determines that the regulations are necessary
to prevent the introduction into or dissemination within the United
States of any pest or disease of livestock.
This proposed rule would amend the regulations by establishing
conditions for the importation of the following commodities from
regions that present a minimal risk of introducing BSE into the United
States: Live bovines for any use born on or after a date determined by
APHIS to be the date of effective enforcement of a ruminant-to-ruminant
feed ban in the region of export (for live bovines from Canada, that
date is March 1, 1999); blood and blood products derived from bovines;
and casings and part of the small intestine derived from bovines.
In accordance with Executive Order 12866 and the Regulatory
Flexibility Act, we assessed the potential economic costs and benefits
of this rule and potential effects on small entities. Below is a
summary of our economic analysis. The full economic analysis may be
viewed on the Regulations.gov Web site or in our reading room.
(Instructions for accessing Regulations.gov and information on the
location and hours of the reading room are provided under the heading
ADDRESSES at the beginning of this proposed rule.) In addition, copies
may be obtained by calling or writing to the individuals listed under
FOR FURTHER INFORMATION CONTACT.
We do not have enough data for a comprehensive analysis of the
potential
[[Page 1115]]
economic effects of this proposed rule on small entities. Therefore, in
accordance with 5 U.S.C. 603, we have performed an initial regulatory
flexibility analysis for this proposed rule. We are inviting comments
about this proposed rule as it relates to small entities. In
particular, we are interested in determining the number and type of
small entities that would incur benefits or costs from the
implementation of this proposed rule and the economic effect of those
benefits or costs.
The Proposed Rule and This Analysis
The purpose of this proposed rule is to remove certain restrictions
on the importation of certain bovine commodities from BSE minimal-risk
regions. APHIS has determined that the restrictions are unwarranted to
prevent the introduction and dissemination of BSE into the United
States from such regions.
The risk assessment for this proposed rule analyzes the likelihood
that importing those commodities from Canada would introduce and
disseminate BSE into the U.S. cattle population. The likelihood of
release (introduction of the disease agent), the likelihood of exposure
for susceptible animals given release, and the magnitude of
consequences given release and exposure are evaluated either
quantitatively or qualitatively. The risk estimation that combines
these components concludes that the BSE risk posed by the proposed rule
would be negligible.
This preliminary regulatory impact analysis addresses expected
economic effects of allowing resumption of imports from Canada of the
commodities listed above. Expected benefits and costs are examined in
accordance with Executive Order 12866. Expected economic impacts for
small entities are also considered, as required by the Regulatory
Flexibility Act. Effects for Canadian and other foreign entities are
not addressed in this analysis. However, the Agency expects
reestablished access to U.S. markets to benefit Canadian producers and
suppliers of commodities included in the proposed rule and, for at
least one commodity, cull cattle/processing beef, to result in partial
displacement of processing beef imports from other sources.
Analytical Approach
We expect the proposed rule to have effects for several different
categories of commodities, and benefits to exceed costs overall. Using
projected baseline data for the United States and projected imports
from Canada with and without the rule, we compute impacts for four
commodity categories: Cull cattle/processing beef would be the
commodity primarily affected, due to the resumption of cull cattle
imports from Canada; and feeder cattle, fed cattle, and fed beef would
be affected secondarily, as Canada's slaughter mix adjusts to
reestablished exports of culled cows, bulls, and stags to the United
States.
The demand for cull cattle is derived from the demand for
processing beef, and only a small portion of the U.S. supply of
processing beef would come from imported Canadian cull cattle.
Therefore, cull cattle and processing beef are combined into a single
commodity category. Processing beef refers to lean, boneless beef that
is mixed with trimmings from grain-fed cattle to produce ground beef,
thereby complementing the domestic production of fed beef. Demand for
processing beef is high, as reflected in robust ground beef sales.
Despite higher domestic cull cattle slaughter in past months in
response to drought conditions, U.S. production of processing beef is
currently trending low because the industry is in the early stages of
the expansion phase of the cattle cycle.
Historically, Canada has been a major trading partner of the United
States in livestock and meat. In 2002, prior to the discovery of BSE in
Canada, the United States imported 1.7 million live bovines from
Canada, valued at more than $1.1 billion and accounting for more than
67 percent of U.S. total bovine imports. That same year, the United
States imported from Canada 382,110 MT of bovine meat, also valued at
$1.1 billion, which comprised about 44 percent of bovine meat imports
from all sources. U.S.-Canadian cattle and beef trade changed
dramatically following Canada's May 2003 BSE discovery. Canada's cattle
population increased rapidly following the loss of export markets for
its cattle and beef. Its excess cow population and the strong U.S.
demand for cull cattle/processing beef underlie imports of Canadian
cull cattle expected to occur with this rule.
We evaluate welfare impacts of the proposed rule for cull cattle/
processing beef, feeder cattle, fed cattle, and fed beef using a net
trade, non-spatial partial equilibrium model.\3\ Present and annualized
values of welfare gains and losses for the 5-year period, 2007-2011,
are computed using 3 percent and 7 percent discount rates. The present
and annualized values are expressed in 2006 and 2001 dollars.
---------------------------------------------------------------------------
\3\ A complete description of the model is provided in:
Forsythe, K.W. ``An Economic Model for Routine Analysis of the
Welfare Effects of Regulatory Changes.'' V3.00. U.S. Department of
Agriculture, Animal and Plant Health Inspection Service, Veterinary
Services, Centers for Epidemiology and Animal Health, April 20, 2005
(draft). It can be found at http://www.aphis.usda.gov/[fxsp0]peer--
review/content/[fxsp0]printable--version/bas--[fxsp0]model--
econOnly--apr20.pdf.
---------------------------------------------------------------------------
For five other commodity categories--breeding cattle, vealers and
slaughter calves, bison, bovine casings and small intestine products,
and bovine blood and blood products--we do not quantitatively model
expected effects of the proposed rule. For the first three of these
categories, changes in import quantities projected under the proposed
rule are very small, suggesting that impacts for U.S. entities would
not be significant. For bovine casings, small intestine products, and
blood and blood products, insufficient information about the
commodities and quantities that would be imported and levels of U.S.
production and consumption prevents us from modeling expected effects
of the rule.
Price and Quantity Impacts for the Modeled Commodities
The proposed rule is expected to result in the resumption of cull
cattle imports from Canada. In addition, declines in imports of feeder
cattle, fed cattle, and fed beef are expected to occur as a result of
the resumption of cull cattle imports affecting the slaughter mix in
Canada. The baseline, along with the projected changes, are presented
in Table VIII, below. Relative prices highlight the different
situations for the Canadian and U.S. cull cattle markets. For example,
in September, 2006, the price of slaughter cows in Canada was only 70
percent of the comparable U.S. price.
Cull cattle/processing beef. With the rule, imports of cull cattle
from Canada would result in price declines for processing beef. Over
the period of analysis, the annual decrease in the price of processing
beef, all things equal, is expected to average about 4.3 percent,
ranging from declines of $5 per cwt (hundredweight, 100 pounds) in
2007, to $3 per cwt in 2009. In response to this price effect,
wholesale demand for processing beef would increase by an average of
about 114 million pounds per year over the period of analysis, and
domestic supply would decrease by an annual average of about 131
million pounds.
Feeder cattle, fed cattle, and fed beef. Imports of feeder cattle,
fed cattle, and fed beef are projected to decrease because of the rule.
Of these commodities affected secondarily, the
[[Page 1116]]
largest impacts would be for feeder cattle. We estimate that the price
of feeder cattle would increase in 2007 by about 0.3 percent, from $733
to about $735 per head in 2006 dollars. Over the 5-year period of
analysis, the annual increase in feeder cattle prices attributable to
the proposed rule, all things equal, is expected to average about 0.6
percent, ranging from about $2.20 per head in 2007, to about $4.60 per
head in 2010. In response to these price increases, there would be an
average annual decrease in the demand for feeder cattle of about
152,000 head over the period of analysis, and an average annual
increase in domestic supply of about 66,000 head.
For fed cattle, our analysis indicates that the price would
increase by less than 0.1 percent in 2007. Over the 5-year period, the
annual increase in fed cattle prices attributable to the proposed rule,
all things equal, is expected to average less than 0.2 percent, ranging
in 2006 dollars from 35 cents per head in 2007, to about $1.90 per head
in 2009. We estimate that these small changes in price would cause the
demand for fed cattle to decrease by an average of about 33,000 head
per year and the domestic supply of fed cattle to increase by an
average of 26,000 head per year.
Impacts of the proposed rule for fed beef are expected to be very
small, with the price increasing in 2007 by less than 0.3 percent, or
about 36 cents per cwt carcass weight equivalent from a base price of
$142. Over the 5-year period of analysis, the increase in fed beef
prices, all things equal, is expected to average less than 0.1 percent,
with no effect projected for the last 3 years.
Clearly, the largest price effects would result from the resumption
of cull cattle imports from Canada, an expected outcome matched by
estimated welfare impacts.
Welfare Effects for the Modeled Commodities
In this analysis, consumption and production have commodity-
specific definitions that differ from their commonly understood
meanings. These definitions are central to interpreting the changes in
welfare, and are shown in Table I. They imply that the proposed rule
may have mixed effects for at least some entities in the affected
industries.
Table I.--Definitions of Consumers and Producers for the Modeled
Commodity Categories
------------------------------------------------------------------------
Commodity category Consumers Producers
------------------------------------------------------------------------
Feeder cattle................... Buyers of cattle Sellers of U.S.-
for feedlot raised cattle for
feeding in the feedlot feeding
United States. in the United
States.
Fed cattle...................... Buyers of fed Sellers of U.S.-
cattle for sourced fed
slaughter in the cattle for
United States. slaughter in the
United States.
Cull cattle/processing beef..... U.S. buyers of Sellers of U.S.-
processing beef produced
at the wholesale processing beef
level. at the wholesale
level.
Fed beef........................ U.S. buyers of fed Sellers of U.S.-
beef at the produced fed beef
wholesale level. at the wholesale
level.
------------------------------------------------------------------------
Cull cattle/processing beef. Projected cull cattle imports from
Canada are converted to their processing beef equivalent using
projected carcass weights for cows, bulls, and stags, as shown in the
note to Table II. Consumers (buyers of processing beef at the wholesale
level) can be expected to benefit from welfare gains and producers
(sellers of processing beef at the wholesale level) can be expected to
bear welfare losses due to the cull cattle imports. The present value
of the welfare changes in 2006 dollars when using a 3 percent discount
rate would be $1.24 billion in consumer gains, $657 million in producer
losses, for a net benefit of about $587 million. Annualized values over
the 5 years, in 2006 dollars when using a 3 percent discount rate,
would be consumer gains of $271 million, producer losses of $143
million, and net benefits of $128 million.
Table II.--Cull Cattle/Processing Beef: Present and Annualized Values of Welfare Changes With the Proposed Rule,
2007-2011
----------------------------------------------------------------------------------------------------------------
Discount Changes in welfare
rate --------------------------------------
(percent) Consumer Producer Net
----------------------------------------------------------------------------------------------------------------
(Thousand dollars)
--------------------------------------
Present value:
2006 Dollars............................................ 3 1,243,147 -656,540 586,607
7 1,120,778 -590,070 530,708
2001 Dollars............................................ 3 1,080,856 -570,814 510,043
7 974,488 -513,038 461,450
Annualized value:
2006 Dollars............................................ 3 271,447 -143,358 128,089
7 273,347 -143,912 129,435
2001 Dollars............................................ 3 236,010 -124,640 111,370
7 237,669 -125,125 112,544
----------------------------------------------------------------------------------------------------------------
Note: Consumers are U.S. buyers of processing beef at the wholesale level; producers are sellers of U.S.-
produced processing beef at the wholesale level. Cull cattle imports from Canada in thousand head are
converted to processing beef in million pounds carcass weight equivalent by multiplying by the following
carcass weights (pounds) for cows and bulls/stags, respectively: 2007, 576 and 888; 2008, 579 and 893; 2009,
583 and 899; 2010, 586 and 904; and 2011, 590 and 909 (Source: Expert opinion, USDA Economic Research Service,
Market and Trade Economics Division, Animal Products, Grains, and Oil Seeds Branch).
[[Page 1117]]
Welfare changes for the cull cattle/processing beef category
dominate the modeled effects. The relatively large impacts are not
unexpected, given that this is the one modeled commodity category for
which imports from Canada would be newly reestablished. The numbers of
cull cattle that would be imported with the rule, projected to average
545,000 cows and 66,000 bulls and stags per year, 2007-2011, are much
larger than the projected average annual declines in feeder cattle
(218,000 head) and fed cattle (59,000 head).
Feeder cattle, fed cattle, and fed beef. Fewer feeder cattle and
fed cattle and less fed beef are projected to be imported from Canada
with the rule than would enter without the rule, and the model
indicates for these commodities gains in producer welfare (higher
prices and less competition from Canadian suppliers) and losses in
consumer welfare (higher prices and fewer feeder, fed cattle, and less
fed beef available for purchase). Of these three commodities, the
largest impact would be for feeder cattle, with estimated producer
welfare gains of $494 million and consumer welfare losses of $518
million, for a net loss of $24 million (2006 dollars, discounted at 3
percent).
Combined welfare effects. Effects of the proposed rule for cull
cattle/processing beef, feeder cattle, fed cattle, and fed beef are
summed in Table III.
Table III.--Present and Annualized Values of Combined Welfare Changes for the Modeled Commodities With the
Proposed Rule, 2007-2011
----------------------------------------------------------------------------------------------------------------
Discount Changes in welfare \1\
rate --------------------------------------
(percent) Consumer Producer Net
----------------------------------------------------------------------------------------------------------------
(Thousand dollars)
--------------------------------------
Present value:
2006 Dollars............................................ 3 444,740 111,662 556,401
7 407,740 96,136 503,876
2001 Dollars............................................ 3 386,246 97,526 483,775
7 302,447 133,266 435,714
Annualized value:
2006 Dollars............................................ 3 97,110 24,384 121,494
7 99,452 23,457 122,908
2001 Dollars............................................ 3 84,339 21,296 105,634
7 86,339 20,514 106,851
----------------------------------------------------------------------------------------------------------------
\1\ Combined welfare changes for cull cattle/processing beef, feeder cattle, fed cattle, and fed beef.
The analysis tells us that the present value of the combined
welfare changes in 2006 dollars when using a 3 percent discount rate,
for example, would be $445 million in consumer gains, $112 million in
producer gains, for a total welfare benefit of $556 million. Annualized
values over the 5 years, in 2006 dollars when using a 3 percent
discount rate, would be consumer gains of $97 million and producer
gains of $24 million, yielding benefits of over $121 million.
Our analysis shows producer welfare changes to be negative in 2007
and positive in each of the following 4 years, 2008-2011. In 2007,
producer welfare losses for the cull cattle/processing beef category
would be larger than the combined producer welfare gains for the other
three commodities. For the years 2008-2011, the opposite would occur.
This is largely due to the fact that, given Canada's excess cull cattle
supply, the largest annual number of cull cattle would be imported in
2007, with imports diminishing thereafter. Table III shows positive
changes in producer welfare because the discounted producer welfare
gains in 2008-2011 would exceed producer welfare losses in 2007.
By far, the largest effects of the proposed rule would be due to
resumption of Canadian cull cattle imports. As shown in Table IV, the
present value of consumer welfare gains for the cull cattle/processing
beef category outweighs the combined consumer welfare losses for the
other three categories ($1.24 billion in consumer benefits, compared to
$798 million in combined consumer losses, in 2006 dollars and
discounted at 3 percent). Producer welfare losses attributable to
resumption of cull cattle/processing beef imports are smaller in
magnitude than the combined producer welfare gains for the other three
categories ($657 million in producer losses, compared to over $768
million in combined producer gains).
We invite public comment on these estimates of welfare changes. In
particular, we welcome informed opinion regarding the price
elasticities we use in the analysis for cull cattle/processing beef
(price elasticity of supply, 0.84; price elasticity of demand, -0.40)
that result in the welfare gains for buyers of processing beef being so
much larger than the welfare losses for sellers of processing beef.
Table IV.--Present Values of Separate and Combined Welfare Changes With the Proposed Rule for Cull Cattle/
Processing Beef, Feeder Cattle, Fed Cattle, and Fed Beef, in 2006 Dollars and Discounted at 3 Percent, 2007-2011
----------------------------------------------------------------------------------------------------------------
Cull cattle/
processing Feeder Fed cattle Fed beef Combined
beef cattle
----------------------------------------------------------------------------------------------------------------
(Thousand dollars)
----------------------------------------------------------------
Change in consumer welfare..................... 1,243,147 518,352 176,136 -103,919 444,740
Change in producer welfare..................... -656,540 494,483 171,791 101,928 111,662
Net change..................................... 586,607 -23,870 4,345 -1,991 556,401
----------------------------------------------------------------------------------------------------------------
[[Page 1118]]
Displacement of Processing Beef Imports From Other Countries
The net impact of cull cattle imports from Canada would depend upon
the extent to which they would displace (substitute for) processing
beef imports from other countries. About 35 percent of cull cattle
imports from Canada over the period of analysis are projected to
displace processing imports from other countries and the remainder are
projected to contribute to an increase in the U.S. supply of processing
beef (respectively, 5-year averages of 132 million pounds and 245
million pounds, carcass weight equivalent).\4\ We consider here the
effects of extreme displacement possibilities, that is, if either none
or all of the Canadian cull cattle imports were to displace processing
beef imports from other countries.
---------------------------------------------------------------------------
\4\ These projections are based on the expert opinion of staff
of the USDA Economic Research Service, Market and Trade Economics
Division, Animal Products, Grains, and Oil Seeds Branch.
---------------------------------------------------------------------------
Projected imports of cull cattle from Canada are shown in Table V,
together with changes in the U.S. supply of processing beef under the
three displacement scenarios: None of the Canadian imports displacing
imports from other countries; projected displacement; or all of the
Canadian imports displacing imports from other countries. In the third
scenario, we assume that the cull cattle imports from Canada would have
no impact on the U.S. supply of processing beef.
Table VI compares the present and annualized values of welfare
changes and average annual price changes for the cull cattle/processing
beef category under the three displacement scenarios, in 2006 dollars.
Discounting at 3 percent, the present value of net welfare benefits for
the cull cattle/processing beef category would be about $927 million
when no displacement is assumed to occur, compared to net benefits of
about $587 million when projected levels of displacement occur, and
zero benefits or costs when we assume all imported Canadian processing
beef would displace imports from other countries. Annualized net values
for the three scenarios, discounted at 3 percent, range from $203
million, to $128 million, to no impact. Over the 5-year period, annual
declines in prices would average about $6 per cwt if no displacement
were to occur, and about $4 per cwt with projected levels of
displacement. There would be no price effect if all processing beef
imports from Canada were to displace imports from other countries.
Table V.--Projected Imports of Cull Cattle From Canada With the Proposed Rule and Changes in the U.S. Supply of
Processing Beef if (i) None of the Cull Cattle Imported From Canada Displace Processing Beef Imported From Other
Countries, (ii) Projected Displacement Occurs, or (iii) All of the Cull Cattle Imported From Canada Displace
Processing Beef Imports From Other Countries, 2007-2011, in Million Pounds Carcass Weight Equivalent
----------------------------------------------------------------------------------------------------------------
2007 2008 2009 2010 2011
----------------------------------------------------------------------------------------------------------------
Projected cull cattle imports from Canada................ 458 403 333 343 346
Projected processing beef imports from Canada............ 0 0 0 0 0
Projected displacement of processing beef imports from 170 149 128 106 106
other countries by processing beef imports from Canada..
Change in U.S. supply if none of the processing beef 458 403 333 343 346
imports from Canada displace imports from other
countries...............................................
Change in U.S. supply of processing beef if projected 288 254 205 237 240
displacement occurs.....................................
Change in U.S. supply if all the processing beef imports 0 0 0 0 0
from Canada displace imports from other countries.......
----------------------------------------------------------------------------------------------------------------
Note: Cull cattle (slaughter cows, bulls, and stags) are converted from thousand head to million pounds carcass
weight equivalent by multiplying by the following carcass weights (pounds) for cows and bulls/stags,
respectively: 2007, 576 and 888; 2008, 579 and 893; 2009, 583 and 899; 2010, 586 and 904; and 2011, 590 and
909 (Source: Expert opinion, USDA Economic Research Service, Market and Trade Economics Division, Animal
Products, Grains, and Oil Seeds Branch).
Table VI.--Present and Annualized Values of Welfare Changes and Average Annual Price Changes for Cull Cattle/
Processing Beef if (i) None of the Cull Cattle Imported From Canada Displaces Processing Beef Imported From
Other Countries, (ii) Projected Displacement Occurs, or (iii) All of the Cull Cattle Imported From Canada
Displace Processing Beef Imports From Other Countries, in 2006 Dollars, 2007-2011
----------------------------------------------------------------------------------------------------------------
Amount of imports from Changes in welfare
Canada assumed to -----------------------------------------------
Discount rate (percent) displace imports from
other countries \1\ Consumer Producer Net
----------------------------------------------------------------------------------------------------------------
(Thousand dollars)
-----------------------------------------------
Present value:
3.................................. None................... 1,928,548 -1,001,140 927,408
3.................................. Projected.............. 1,243,147 -656,540 586,607
3.................................. All.................... 0 0 0
7.................................. None................... 1,742,482 -901,619 840,864
7.................................. Projected.............. 1,120,778 -590,070 530,708
7.................................. All.................... 0 0 0
Annualized value:
3.................................. None................... 421,107 -218,603 202.504
3.................................. Projected.............. 271,447 -143,358 128,089
[[Page 1119]]
3.................................. All.................... 0 0 0
7.................................. None................... 424,975 -219,896 205,079
7.................................. Projected.............. 273,347 -143,912 129,435
7.................................. All.................... 0 0 0
Average annual price change and
percentage price change:
(Dollars (Percentage)
per cwt)
None................... -6.00 -6.57
Projected.............. -4.00 -4.26
All.................... -0 0
----------------------------------------------------------------------------------------------------------------
Note: Prices are in carcass weight equivalent.
\1\ Projected displacement quantities for the 5 years, 2007-2011, in million pounds carcass weight equivalent,
are 170, 149, 128, 106, and 106. Displaced quantities for the 5 years, if all cull cattle imported from Canada
were to displace processing beef imports from other countries, would be 458, 403, 333, 343, and 346 (Source:
Expert opinion, USDA Economic Research Service, Market and Trade Economics Division, Animal Products, Grains,
and Oil Seeds Branch).
It is evident that the extent of import displacement would
influence impacts of the proposed rule for the cull cattle/processing
beef category. Table VII shows the significance of the displacement
assumption for the combined welfare effects. The larger the quantity of
processing beef imports from other countries that would be displaced,
the smaller the net benefits. The difference between consumer gains and
producer losses would exceed $897 million (discounted at 3 percent) if
no displacement of processing beef imports from other countries were to
occur. The present value of net benefits would be about $556 million
with projected displacement, and there would be a net welfare loss of
$30 million if all of the imported Canadian cull cattle were to
displace imports from other countries. In the third scenario, the
modeled effects of the rule would be due to changes in the supply of
Canadian feeder cattle, fed cattle, and fed beef as a result of the
cull cattle imports affecting the slaughter mix in Canada. In this
case, consumer welfare losses for these commodities would exceed
producer welfare gains, resulting in a net decline in welfare.
Table VII.--Present and Annualized Values of Combined Welfare Changes for the Modeled Commodities if (i) None of
the Processing Beef Imports From Canada Displace Imports From Other Countries, (ii) Projected Displacement
Occurs, or (iii) All of the Processing Beef Imports From Canada Displace Imports From Other Countries, in 2006
Dollars, 2007-2011
----------------------------------------------------------------------------------------------------------------
Amount of imports from Changes in welfare
Canada assumed to displace --------------------------------------
Discount rate (percent) discount imports from other
countries Consumer Producer Net
----------------------------------------------------------------------------------------------------------------
(Thousand dollars)
--------------------------------------
Present value:
3...................................... None........................ 1,130,141 -232.938 897,202
3...................................... Projected................... 444,740 111,662 556,401
3...................................... All......................... -798,407 768,202 -30,206
7...................................... None........................ 1,029,444 -215,413 814,032
7...................................... Projected................... 407,740 96,136 503,876
7...................................... All......................... -713,038 686,206 -26,832
Annualized value:
3...................................... None........................ 246,770 -50,861 195,909
3...................................... Projected................... 97,110 -24,384 121,494
3...................................... All......................... -174,337 167,742 -6,595
7...................................... None........................ 251,080 -52,527 198,552
7...................................... Projected................... 99,452 23,457 122,908
7...................................... All......................... -173,895 167,369 -6,527
----------------------------------------------------------------------------------------------------------------
[[Page 1120]]
Multi-sector impacts. For a broader examination of impacts, we map
interactions among the grain, animal, and animal products industries
using a second model.\5\ This model takes into account substitution
among livestock products in response to relative price changes. It
incorporates foreign trade and yields expected price and revenue
effects, but does not allow for computation of welfare changes.
---------------------------------------------------------------------------
\5\ Three examples of studies based on this type of model are:
Paarlberg, P.L. ``Agricultural Export Subsidies and Intermediate
Goods Trade,'' American Journal of Agricultural Economics. 77, 1
(1995): 119-128. Paarlberg, P.L., J.G. Lee, and A.H. Seitzinger.
``Potential Revenue Impact of an Outbreak of Foot-and-Mouth Disease
in the United States,'' Journal of the American Veterinary Medical
Association. 220, 7 (April 1, 2002): 988-992. Sanyal, K.K. and R.W.
Jones. ``The Theory of Trade in Middle Products,'' American Economic
Review. 72 (1982): 16-31.
---------------------------------------------------------------------------
Our results show for the combined livestock, feed, and grain
sectors, an estimated decline in gross revenues with the proposed rule
of less than one percent in 2007. For the beef and cattle sectors, the
gross revenue declines are also less than one percent. The analysis
indicates declines of less than one percent, as well, in cattle and
beef prices in 2007.
As expected, these simulated impacts are small because they
describe effects for aggregated commodity groupings (all cattle
production and all beef production are grouped within single
categories) and because of the linkages specified between the livestock
production and processing sectors that allow for greater flexibility in
adjusting to supply shocks. The larger effects reported above for cull
cattle/processing beef are subsumed within a combined beef sector in
this multi-sector model. These results support our expectation that
broader impacts of the proposed rule would be limited.
Effects for Commodities Not Modeled
Commodity categories not modeled that would be affected by the
proposed rule are breeding cattle, vealers and slaughter calves, bison,
bovine casings and small intestine products, and bovine blood and blood
products.
Breeding cattle. We do not expect the resumption of dairy and beef
breeding cattle imports from Canada to significantly affect the U.S.
market for these animals. The number that would be imported under the
proposed rule is small in comparison to projected cattle imports from
Canada overall (4 percent) and even smaller in comparison to the number
of replacement breeding heifers supplied on average by U.S. producers
(0.5 percent). Breeding cattle imported from Canada would augment the
U.S. breeding herd very slightly. Demand for these animals, like the
demand for breeding cattle generally, would derive from management
decisions based on herd composition and expected future net returns,
with price variations influencing secondarily the quantity of breeding
cattle purchased.
Vealers and slaughter calves. The proposed rule is expected to have
a small effect on the number of vealers and slaughter calves imported
from Canada. A decline in imports is projected in each year of the
period of analysis, compared to quantities that would be imported
without the rule, as Canadian slaughter patterns adjust to
reestablished export opportunities for cull cattle. Over the 5-year
period, an average of 11,800 fewer vealers and slaughter calves are
projected to be imported annually with the proposed rule than would be
imported without the rule.
For the 10-year period, 1994-2003, slaughter of vealers and calves
in the United States averaged 1.3 million head per year. We expect
annual U.S. vealer and calf slaughter during the period of analysis to
be similar to this earlier average. On this basis, the average annual
decrease in vealer and slaughter calf imports from Canada under the
proposed rule would be equal to less than 1 percent of U.S. vealer and
calf slaughter. Any effect on vealer and slaughter calf prices because
of the smaller number expected to be imported under the proposed rule
would not be significant.
Bison. Like the cattle industry, the commercial bison industry is
comprised primarily of cow-calf operations that sell weaned calves to
other operations for finishing and processing. Projected bison imports
from Canada total 4,000 head in 2007, 3,150 head in 2008, and 2,500
head each year thereafter. Each year, 250 head of breeding bison are
projected to be imported. The remainder would be mainly bison for
immediate slaughter (2,500 head in 2007, 2,400 head in 2008, and 2,000
head in each of the following years), with a lesser number of feeders
(1,250 head in 2007, 500 head in 2008, and 250 head in each year
thereafter).
The 2,500 bison projected to be imported for immediate slaughter in
2007 would represent about 7 percent of the U.S. slaughter total in
2005. We assume that most if not all of these slaughter bison (as well
as the 1,250 head projected to be imported in 2007 for feeding) would
be slaughtered at less than 30 months of age, that is, they would be of
the same age as Canadian bison that are currently allowed to be
imported. Thus, the only change in bison imports in 2007, as well as in
subsequent years, under the proposed rule would be imports of 250 head
of breeding bison.
Yearly imports from Canada of 250 head of breeding bison would
augment the U.S. bison breeding herd only slightly. They would annually
represent only about two-tenths of one percent of the U.S. bison
breeding herd, assuming the composition of the national bison herd is
similar to that of the national cattle herd, with breeding stock (cows,
replacement heifers, and bulls) constituting about 56 percent of the
animals.
As the market for bison meat becomes better established, the demand
for breeding stock will continue to strengthen. The projected imports
of breeding bison under the proposed rule would help meet this growing
demand. However, they would constitute a very small addition to the
U.S. breeding herd. Any effects on bison prices and the welfare of U.S.
bison producers are expected to be insignificant.
Bovine casings and small intestine products. The proposed rule may
affect the supply of bovine casings and small intestine products in the
United States in three ways: By allowing importation of bovine casings
from Canada; by allowing importation of Canadian bovine small
intestines, minus the distal ileum, that are used to make certain
casings and variety meats; and by reducing restrictions on live bovine
imports from Canada and thereby changing the U.S. supply of bovine
products in general, including intestines and other material used to
produce casings and variety meats.
We calculate that with the rule the annual supply of bovine casings
and variety meats produced from small intestines would increase on
average over the period of analysis by about 1.6 percent. The largest
increase would occur in 2007, with production of 2.5 million pounds of
additional small intestine for use as casings and variety meats. These
supply projections presume a ready market for these products.
The proposed rule would allow importation from Canada of bovine
small intestine minus the distal ileum that could then be processed
into casings and variety meats in the United States. APHIS does not
have information on the volume of bovine small intestine that may be
imported from Canada because of the proposed rule. We welcome
information that would enable us to evaluate effects on the U.S. supply
of bovine small intestine of allowing their importation from Canada.
[[Page 1121]]
Current regulations prohibit the importation of bovine and other
ruminant casings from BSE minimal-risk regions. The proposed rule would
remove this prohibition, and therefore allow resumption of bovine
casings imports from Canada. The Agency does not have information on
levels of production or consumption of bovine casings in the United
States, and trade data do not distinguish between bovine and ovine
casings; import and export quantities and prices for bovine casings
alone are unavailable from the U.S. Department of Commerce. We welcome
information that the public may provide that would enable us to better
understand the U.S. bovine casings industry and levels of historic
trade in bovine casings between the United States, Canada, and the
world.
Bovine blood and blood products. The proposed rule would allow
resumption of imports of bovine blood and blood products from BSE
minimal-risk regions, that is, of Canadian origin. The primary
commodities affected would be products used in the manufacture of
vaccines and drugs, of which fetal bovine serum (FBS) is the most
important. It is the most widely used serum in the culturing of cells,
tissues and organs.
Since the detection of BSE in Canada in 2003, imports of FBS from
Canada have been restricted to either research samples of Canadian-
origin FBS (limited to 1 liter per shipment), or FBS that is derived
from animals that originate in the United States, Australia, Mexico, or
Central America and is processed at a designated Canadian facility
under USDA permit.
The proposed rule may affect the supply of FBS in the United States
in two ways: By allowing Canadian-origin FBS imports for commercial
purposes, and by reducing restrictions on bovine imports from Canada
and thereby changing the U.S. supply of pregnant cows presented for
slaughter. We approximate that the proposed rule would allow for the
importation of up to 24,000 liters of FBS derived from Canadian cows.
Had this amount been imported in 2005, it would have represented about
13 percent of U.S. imports of FBS from all sources. In addition, the
increase in pregnant cow slaughter projected with the proposed rule may
provide an additional 23,000 to 32,000 liters. Other than for these
upper-bound approximations, we are unable to project the extent to
which the U.S. supply of FBS may be affected by the proposed rule. The
additional supplies would benefit U.S. establishments that use FBS in
their manufacturing processes.
Alternative to the Proposed Rule
An alternative to the proposed rule considered by APHIS would be to
allow resumption of live bovine imports from BSE minimal-risk regions
without restriction by date of birth. In other words, Canadian bovines
could be imported for any destination or purpose without regard to
their age.
Cattle imports from Canada. In Table VIII, projected imports under
the alternative are compared to projected imports if no regulatory
action were taken (baseline import quantities) and to projected imports
under the proposed rule. The alternative would allow entry of bovines
born before the date specified in the proposed rule as when a ruminant-
to-ruminant feed ban in Canada was effectively enforced: March 1, 1999.
For convenience, we refer to these animals as older cull cattle.
Under the proposed rule, cattle that are 8 years or older prior to
March 1, 2007 would be prohibited. Each year thereafter, the prohibited
older cull cattle would comprise a smaller age group: 9 years or older
prior to March 1, 2008, 10 years or older prior to March 1, 2009, and
so on. Within a few years, the proposed rule's requirement that bovines
be born on or after March 1, 1999, would not limit bovine imports from
Canada; bovine imports allowed under the proposed rule and the
alternative would be the same.
Table VIII.--Projected Imports of Canadian Feeder Cattle, Fed Cattle,
Cull Cattle/Processing Beef, and Fed Beef: Baseline, Proposed Rule, and
Alternative of No Restriction by Date of Birth on Live Bovine Imports,
2007-2011
------------------------------------------------------------------------
2007 2008 2009 2010 2011
------------------------------------------------------------------------
Feeder cattle from Canada
------------------------------------------------------------------------
(Thousand head)
Baseline.................... 302 371 425 440 441
Proposed Rule............... 189 175 167 178 179
Alternative................. 189 175 167 178 179
------------------------------------------------------------------------
Fed cattle from Canada
------------------------------------------------------------------------
(Thousand head)
Baseline.................... 742 731 729 755 756
Proposed Rule............... 728 673 644 685 688
Alternative................. 728 673 644 685 688
------------------------------------------------------------------------
Cull cattle from Canada, net of imports assumed to displace processing
beef imports from other countries
------------------------------------------------------------------------
(Million pounds carcass weight equivalent)
Baseline.................... 0 0 0 0 0
Proposed Rule............... 288 254 205 237 240
Alternative................. 360 318 205 237 240
------------------------------------------------------------------------
Fed beef from Canada
------------------------------------------------------------------------
(Million pounds carcass weight equivalent)
Baseline.................... 446 425 420 419 419
Proposed Rule............... 371 390 420 419 419
[[Page 1122]]
Alternative................. 371 390 420 419 419
------------------------------------------------------------------------
Source: Expert opinion, USDA Economic Research Service, Market and Trade
Economics Division, Animal Products, Grains, and Oil Seeds Branch.
Note: For the cull cattle/processing beef category, cull cattle imports
are converted from thousand head to million pounds carcass weight
equivalent for 2007-2011 by multiplying by the following carcass
weights (pounds) for cows and bulls/stags, respectively: 2007, 576 and
888; 2008, 579 and 893; 2009, 583 and 899; 2010, 586 and 904; and
2011, 590 and 909.
Projected imports of Canadian feeder cattle, fed cattle, and fed
beef are the same under the proposed rule and under the alternative. In
both cases, feeder and fed cattle imports would be fewer than would
enter without the rule, and fed beef imports would be less in the first
2 years of the period of analysis. The only difference between imports
under the proposed rule and under the alternative is with respect to
cull cattle imports projected for 2007 and 2008. Under the alternative,
imports of cull cattle are projected in these 2 years to be one-fourth
greater, net of displaced processing beef imports, than they would be
under the proposed rule. The older cull cattle that would be imported
under the alternative would total 168,000 cows and 20,000 bulls and
stags in 2007, and 147,000 cows and 18,000 bulls and stags in 2008.
These older cull cattle would yield 72 million pounds and 64 million
pounds of processing beef, carcass weight equivalent, for the 2 years.
Table IX shows the present and annualized values of welfare changes
under the alternative for the cull cattle/processing beef category. The
present value of the welfare changes (2006 dollars, 3 percent discount
rate) would be $1.4 billion in consumer gains, $731 million in producer
losses, for a net benefit of about $667 million. Annualized values over
the 5 years would be consumer gains of $305 million, producer losses of
$160 million, and net benefits of $146 million.
Table IX.--Alternative of No Restriction by Date of Birth on Live Bovine Imports: Present and Annualized Values
of Welfare Changes for Cull Cattle/Processing Beef, 2007-2011
----------------------------------------------------------------------------------------------------------------
Discount Changes in welfare
rate --------------------------------------
(percent) Consumer Producer Net
----------------------------------------------------------------------------------------------------------------
(Thousand dollars)
--------------------------------------
Present Value:
2006 Dollars............................................ 3 1,397,680 -730,800 666,880
7 1,267,061 -660,333 606,728
2001 Dollars............................................ 3 1,215,348 -635,446 579,902
7 1,101,796 -574,189 527,606
Annualized Value:
2006 Dollars............................................ 3 305,190 -159,573 145,617
7 309,025 -161,049 147,976
2001 Dollars............................................ 3 265,377 -138,752 126,624
7 268,718 -140,039 128,678
----------------------------------------------------------------------------------------------------------------
Note: Consumers are U.S. buyers of processing beef at the wholesale level; producers are sellers of U.S.-
produced processing beef at the wholesale level. Cull cattle imports from Canada in thousand head are
converted to processing beef in million pounds carcass weight equivalent by multiplying by the following
carcass weights (pounds) for cows and bulls/stags, respectively: 2007, 576 and 888; 2008, 579 and 893; 2009,
583 and 899; 2010, 586 and 904; and 2011, 590 and 909.
To exemplify the differences in welfare effects between the
alternative and the proposed rule for the cull cattle/processing beef
category, we compare in Table X their present and annualized values in
2006 dollars when discounted at 3 percent. Compared to effects under
the proposed rule, consumer welfare gains under the alternative would
be 12.4 percent larger, producer welfare losses would be 11.3 percent
larger, and net benefits would be 13.7 percent larger. The annual
decrease in processing beef prices under the alternative over the 5-
year period, all things equal, is computed to average $4.80 per cwt,
compared to an average annual decrease of $4.00 under the proposed
rule.
[[Page 1123]]
Table X.--Present and Annualized Values of Welfare Changes for Cull
Cattle/Processing Beef, With the Alternative and With the Proposed Rule,
3 Percent Discount Rate, 2006 Dollars, 2007-2011
------------------------------------------------------------------------
Changes in welfare
--------------------------------------
Consumer Producer Net
------------------------------------------------------------------------
(Thousand dollars)
--------------------------------------
Present Value:
Alternative.................. 1,397,680 -730,800 666,880
Proposed Rule................ 1,243,147 -656,540 586,607
Difference................... 154,533 -74,260 80,273
Annualized Value:
Alternative.................. 305,190 -159,573 145,617
Proposed Rule................ 271,447 -143,358 128,089
Difference................... 33,743 -16,215 17,528
Difference as a percentage of 12.4% 11.3% 13.7%
welfare changes with the
proposed rule...................
------------------------------------------------------------------------
When we compare present and annualized values of combined welfare
changes under the alternative and under the proposed rule, we find that
the net welfare benefits would be 15 to 16 percent larger under the
alternative than would be realized under the proposed rule. For
example, the annualized net benefit (2006 dollars, 3 percent rate of
discount) would be $140 million under the alternative, compared to $121
million under the proposed rule. Impacts under the alternative and
under the proposed rule would also differ for some of the commodities
not modeled. For example, we would expect the supply of bovine casings
to be larger with the alternative, due to larger projected slaughter
numbers.
BSE risk. As described in the risk assessment for this proposed
rule, transmission of BSE requires that bovines ingest feed that
contains the infectious agent. Feed contamination results from the
incorporation of ingredients that contain certain ruminant protein
derived from infected animals. Standard rendering processes do not
completely inactivate the BSE agent. Therefore, rendered protein such
as meat-and-bone meal derived from infected animals may remain
contaminated. Prohibitions on the use of ruminant protein in ruminant
feed are imposed by FDA to mitigate the risk of BSE transmission.
The OIE establishes standards for the international trade in
animals and animal products. It recommends that cattle be imported from
a region that has reported an indigenous case of BSE only if the cattle
selected for export were born after the date from which a ban on the
feeding of ruminants with meat-and-bone meal and greaves (the residue
left after animal fat or tallow has been rendered) derived from
ruminants had been effectively enforced.
On August 4, 1997, Canada issued regulations prohibiting the use of
mammalian protein in ruminant feeds. Implementation of the feed ban was
a gradual process, with producers, feed mills, retailers, and feed
manufacturers given grace periods before they were required to be in
full compliance with the regulations. It is estimated that this
implementation period may have lasted several months, making February
1998 a more realistic date on which the ban can be considered to have
been practically implemented.
The likelihood that Canadian cattle born after February 1998 would
be exposed to the BSE agent continues to decrease over time. APHIS
considers that a period of 1 year following the practical
implementation of the feed ban allows sufficient time for the measures
taken by Canada to have their desired effect. Therefore, APHIS
concludes that cattle born on or after March 1, 1999, are unlikely to
have been exposed to the BSE agent via feed and can be imported into
the United States for any purpose with a low risk that they will be
infected with the BSE agent.
We do not have a quantitative estimate of the additional risk posed
by importation of Canadian cattle born before March 1, 1999. The
importance of a feed ban as a risk mitigation measure is demonstrated
in science and experience, and is incorporated into the OIE feed ban
recommendation. We conclude that there may be some degree of increased
risk of BSE introduction under the alternative, compared to the minimal
risk posed by the proposed rule, because of the greater likelihood of
the older cull cattle having been exposed to infectivity. While our
analysis indicates larger net welfare benefits may be realized under
the alternative of no restriction by date of birth on live bovine
imports, the proposed rule is preferable because it would pose a lower
risk of BSE introduction into the United States and would be consistent
with demonstrated science, experience, and OIE guidance.
Expected Impacts Assuming Resumption of Processing Beef Imports From
Canada
Current regulations require that imported Canadian cattle be
slaughtered at less than 30 months of age and that imported Canadian
beef come from cattle slaughtered at less than 30 months of age. Our
analysis assumes no imports of processing beef from Canada. As a second
scenario, we consider effects if imports of Canadian beef from cattle
slaughtered at 30 months or older were to resume at the same time that
the proposed rule is finalized.
Importation of ruminant products and byproducts was included in the
BSE minimal-risk regions final rule, and this proposed rule would not
change regulations regarding the importation of beef from Canada.
However, in March 2005, APHIS gave notice in the Federal Register that
the applicability of certain provisions of the rule pertaining to
bovine meat, meat byproducts, whole and half carcasses, and certain
other bovine products was being delayed until further notice. This
partial delay of applicability of the BSE minimal-risk regions rule
prohibits the importation of such products if derived from bovines 30
months of age or older at slaughter.
As discussed, the United States is a large importer of processing
beef, with Australia, New Zealand, and Uruguay currently our primary
suppliers. Over the period of analysis, total processing beef imports
are projected to provide about 45 percent of U.S. consumption of
processing beef (decreasing from 49 percent in 2007 to 42 percent in
2011). We assume annual imports of Canadian processing beef, 2007-2011,
would average 240 million pounds carcass weight equivalent, of which
about two-thirds would displace processing beef imports from other
countries and about
[[Page 1124]]
one-third would represent a net increase in U.S. supply. It is further
assumed under this scenario that the Canadian cull cattle imported
would not displace processing beef imports from other countries.\6\ The
net addition of processing beef from Canada would be equivalent to 2.8
percent of projected baseline imports (without the rule) over the
period of analysis, or 1.3 percent of U.S. supply. When the processing
beef produced from projected cull cattle imports from Canada is
included, the increase in the U.S. supply of processing beef under this
scenario would be equivalent to 4.3 percent of projected imports
without the proposed rule.
Projected imports of cull cattle and processing beef from Canada
under this scenario are compared in Table XI to projected imports of
cull cattle alone used to evaluate the proposed rule. Results of the
analysis show the price of processing beef decreasing in 2007 by 6.3
percent under this scenario, from $99 to about $93 per cwt carcass
weight equivalent in 2006 dollars. Over the period of analysis, the
annual decrease in processing beef prices because of the proposed rule,
all things equal, is expected to average about 5 percent, ranging from
about $6.20 per cwt in 2007 to about $3.80 per cwt in 2009.
---------------------------------------------------------------------------
\6\ The import quantities and extent of displacement are
projections made by staff of the USDA Economic Research Service
(ERS), Market and Trade Economics Division, Animal Products, Grains,
and Oil Seeds Branch, based on their expert opinion and reference to
the ``USDA Agricultural Baseline Projections to 2015,'' United
States Department of Agriculture, Interagency Agricultural
Projections Committee, Baseline Report OCE-2006-1, February 2006.
Table XI.--Scenario Comparison of Quantities of (1) Cull Cattle Alone and (ii) Cull Cattle and Processing Beef
Projected To Be Imported From Canada, Net of Displaced Processing Beef Imports From Other Countries, 2007-2011,
in Million Pounds of Processing Beef, Carcass Weight Equivalent
----------------------------------------------------------------------------------------------------------------
Cull cattle and
Year Cull cattle only processing beef
----------------------------------------------------------------------------------------------------------------
2007...................................................................... 288 339
2008...................................................................... 254 299
2009...................................................................... 205 242
2010...................................................................... 237 279
2011...................................................................... 240 282
----------------------------------------------------------------------------------------------------------------
Source: Expert opinion, USDA Economic Research Service, Market and Trade Economics Division, Animal Products,
Grains, and Oil Seeds Branch.
Notes: Cull cattle are converted to processing beef by multiplying by the following carcass weights (pounds) for
cows and bulls/stags, respectively: 2007, 576 and 888; 2008, 579 and 893; 2009, 583 and 899; 2010, 586 and
904; and 2011, 590 and 909. All of the quantities that follow are expressed in million pounds of processing
beef, carcass weight equivalent. For the cull cattle imports only scenario, the quantities are based on
projected imports of slaughter cows, bulls, and stags, and are equivalent to: 2007, 458; 2008, 403; 2009, 333;
2010, 343; and 2011, 346. These quantities are reduced by the following projected displaced processing beef
imports from other countries: 2007, 170; 2008, 149; 2009, 128; 2010, 106; and 2011, 106. For the scenario that
assumes importation from Canada of both cull cattle and processing beef, quantities of cull cattle imported
are: 2007, 214; 2008, 199; 2009, 192; 2010, 204; and 2011, 207. Projected processing beef imports are: 2007,
325; 2008, 275; 2009, 200; 2010, 200; and 2011, 200. Combined cull cattle and processing beef imports are
2007, 539; 2008, 474; 2009, 392; 2010, 404; and 2011, 407. These quantities are reduced by the following
projected displaced processing beef imports from other countries: 2007, 200; 2008, 175; 2009, 150; 2010, 125;
and 2011, 125.
As shown in Table XII, the present value of the welfare changes in
2006 dollars when using a 3 percent discount rate would be $1.47
billion in consumer gains, $770 million in producer losses, for a net
benefit of about $695 million. Annualized values over the 5 years, in
2006 dollars when using a 3 percent discount rate, would be consumer
gains of $320 million, producer losses of $168 million, and net
benefits of $152 million.
Table XII.--Cull Cattle/Processing Beef: Present and Annualized Values of Welfare Changes Assuming Cull Cattle
Imports and Processing Beef Imports From Canada Would Resume at the Same Time, 2007-2011
----------------------------------------------------------------------------------------------------------------
Discount Changes in welfare
rate --------------------------------------
(percent) Consumer Producer Net
----------------------------------------------------------------------------------------------------------------
(Thousand dollars)
--------------------------------------
Present Value:
2006 Dollars............................................ 3 1,465,829 -770,389 695,440
7 1,321,580 -692,393 629,187
2001 Dollars............................................ 3 1,274,467 -669,797 604,670
7 1,149,081 -602,002 547,078
Annualized Value:
2006 Dollars............................................ 3 320,071 -168,218 151,853
7 322,321 -168,868 153,453
2001 Dollars............................................ 3 278,286 -146,253 132,033
7 280,250 -146,823 133,427
----------------------------------------------------------------------------------------------------------------
Compared to impacts for the cull cattle/processing beef category
when only cull cattle would enter, this scenario would result in
consumer welfare gains larger by 17.9 percent, producer welfare losses
larger by 17.3 percent, and net benefits larger by 18.6 percent.
[[Page 1125]]
Combined effects under this scenario for cull cattle/processing
beef, feeder cattle, fed cattle, and fed beef are shown in Table XIII.
Table XIII.--Present and Annualized Values of Combined Welfare Changes for the Modeled Commodities, Assuming
Cull Cattle Imports and Processing Beef Imports From Canada Would Resume at the Same Time, 2007-2011
----------------------------------------------------------------------------------------------------------------
Discount Changes in welfare
rate --------------------------------------
(percent) Consumer Producer Net
----------------------------------------------------------------------------------------------------------------
(Thousand dollars)
--------------------------------------
Present Value:
2006 Dollars............................................ 3 669,191 2,387 671,578
7 610,108 -2,145 607,963
2001 Dollars............................................ 3 581,395 2,519 583,917
7 529,956 -1,342 528,614
Annualized Value:
2006 Dollars............................................ 3 146,122 523 146,643
7 148,808 -513 148,294
2001 Dollars............................................ 3 126,951 551 127,501
7 129,252 -327 128,923
----------------------------------------------------------------------------------------------------------------
Removal of the delay of applicability, thereby allowing importation
of Canadian beef from cattle slaughtered at 30 months or older, is a
decision that will be taken at the discretion of the Secretary of the
U.S. Department of Agriculture.
Expected Impacts for Small Entities
We have prepared an initial regulatory flexibility analysis that
indicates that industries expected to be affected by the proposed rule
are composed largely of small entities. Industries that may be
affected, as categorized by the North American Industry Classification
System, are Beef Cattle Ranching and Farming (NAICS 112111), Dairy
Cattle and Milk Production (NAICS 112120), All Other Animal Production
(NAICS 112990), Cattle Feedlots (NAICS 112112), Animal (except Poultry)
Slaughtering (NAICS 311611), Meat Processed from Carcasses (NAICS
311612), Meat and Meat Product Merchant Wholesalers (NAICS 424470),
Supermarkets and Other Grocery (except Convenience) Stores (NAICS
445110), Meat Markets (NAICS 445210), In-Vitro Diagnostic Substance
Manufacturing (NAICS 325413), and Biological Product (except
Diagnostic) Manufacturing (NAICS 325414).
Average effects for small entities would be small. As examples, we
approximate that gross receipts for small-entity beef and dairy
operations would increase, respectively, by $160 (0.6 percent of annual
revenue) and $133 (less than 0.1 percent of annual revenue), due to the
rule's projected impact on feeder cattle prices. We approximate that
small-entity feedlots may incur a revenue loss of about $5,040 (less
than 0.3 percent of annual revenue), due to the rule's expected effects
on feeder cattle and fed cattle prices. Small-entity meat packing and
processing establishments may benefit marginally with the rule, with
estimated price increases for fed beef in 2007 and 2008 representing an
increase in annual revenue of less than 0.2 percent. Effects of the
proposed rule for packers and processors that utilize processing beef
would be larger, due to the resumption of cull cattle imports from
Canada. Annual prices of processing beef are expected to fall by an
average of $4 per cwt over the period of analysis. The price declines
would benefit establishments that use processing beef to produce ground
beef for the wholesale market. Conversely, establishments that sell
processing beef would be negatively affected by the expected price
declines.
Currently, bovines imported from Canada are restricted to animals
that are slaughtered at less than 30 months of age. Bovines not
imported for immediate slaughter must be moved from the port of entry
to a feedlot in a sealed means of conveyance and from the feedlot to a
recognized slaughtering establishment again in a sealed means of
conveyance. The animals may not be moved to more than one feedlot.
Under the proposed rule, these movement restrictions would no longer be
imposed. Canadian bovines imported other than for immediate slaughter
could be moved any number of times to any destinations in unsealed
means of conveyance.
Under the proposed rule, feeder bovines imported from BSE minimal-
risk regions would not need to be accompanied by APHIS Form VS 17-130,
which currently is used to identify the feedlot of destination. (The
individual responsible for the movement of an imported animal and the
individual identification of the animal would still be required
information on the accompanying health certificate.) Also under the
proposed rule, bovines of Canadian origin moved from a U.S. feedlot to
a slaughtering establishment would not need to be accompanied by APHIS
Form VS 1-27.
Removal of these movement and paperwork requirements would benefit
buyers and sellers of Canadian-origin bovines. Many of the
beneficiaries are likely to be small entities, given their predominance
among cattle and dairy operations and feedlot establishments. Affected
businesses would be able to take advantage of a broader range of
transactional opportunities than under current regulations. For
example, the sale of a young steer first for backgrounding, then for
confined feeding at one or more facilities, and finally for slaughter
may enable the original and subsequent owners of the animal to better
maximize returns compared to current marketing possibilities. While we
are not able to quantify impacts of removing current movement
restrictions on Canadian cattle imports, we expect their removal would
benefit the cattle industry across-the-board.
The Agency has found no significant alternatives to the proposed
rule that would continue to protect against the introduction and
dissemination of BSE into the United States while removing unnecessary
prohibitions on the importation of certain commodities from Canada.
Without the proposed rule, restrictions on U.S. importation of
[[Page 1126]]
certain Canadian bovine commodities that are without scientific merit
would continue. With the proposed rule, importation of these Canadian
commodities would be allowed to resume under certain conditions and the
risk of introduction of BSE into the United States would remain
minimal.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. If this proposed rule is adopted: (1) All State
and local laws and regulations that are inconsistent with this rule
will be preempted; (2) no retroactive effect will be given to this
rule; and (3) administrative proceedings will not be required before
parties may file suit in court challenging this rule.
National Environmental Policy Act
To provide the public with documentation of APHIS' review and
analysis of any potential environmental impacts associated with the
importation of bovine and bovine products from Canada under this
proposed rule, we have prepared an environmental assessment. The
environmental assessment was prepared in accordance with: (1) The
National Environmental Policy Act of 1969 (NEPA), as amended (42 U.S.C.
4321 et seq.), (2) regulations of the Council on Environmental Quality
for implementing the procedural provisions of NEPA (40 CFR parts 1500-
1508), (3) USDA regulations implementing NEPA (7 CFR part 1b), and (4)
APHIS' NEPA Implementing Procedures (7 CFR part 372).
The environmental assessment may be viewed on the Regulations.gov
Web site or in our reading room. Instructions for accessing
Regulations.gov and information on the location and hours of the
reading room are provided under the heading ADDRESSES at the beginning
of this proposed rule. In addition, copies may be obtained by calling
or writing to the individuals listed under FOR FURTHER INFORMATION
CONTACT.
Paperwork Reduction Act
This proposed rule contains no new information collection or
recordkeeping requirements under the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.).
References
1. Wilesmith, J.W., G.A.H. Wells, J.B.M. Ryan, D. Gavier-Widen,
and M.M. Simmons. (1997). A cohort study to examine maternally-
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2. Prince, M.J., J.A. Bailey, P.R. Barrowman, K.J. Bishop, G.R.
Campbell, and J.M. Wood. (2003). Bovine Spongiform Encephalopathy.
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for the infection among cattle. J. Math. Biol. 2004. Jan:48(1): 1-
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5. European Commission (EC). (2005). Report on the monitoring
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[fxsp0]food/food/biosafety/bse/[fxsp0]annual--
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[fxsp0]weeklystats.html#pass.
8. Department of Environment Food and Rural Affairs (DEFRA),
United Kingdom. (2006a). BSE: Statistics--Confirmed cases of BSE in
GB by year of birth where known; As of October 2, 2006. Page last
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[fxsp0]bse/statistics/bse/yrbirth.html.
9. Animal and Plant Health Inspection Service (APHIS). (2004).
Analysis of risk--update for the Final Rule: bovine spongiform
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]lpa/issues/bse/risk-- assessment/[fxsp0]03-080-3--risk--
doc.pdf.
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Risk Analysis: BSE Risk from Importation of Designated Ruminants and
Ruminant Products from Canada into the United States, page 18.
October 2003, available at http://aphis.usda.gov/lpa/issues/[fxsp0
]bse/bsecan--[fxsp0]risk--anal.pdf.
11. United States Department of Agriculture (USDA). (2005).
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[fxsp0]lpa/issues/bse/[fxsp0]CAN-
FeedBan[fxsp0]Review.pdf.
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revex[fxsp0]a/revexae.shtml.
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Findings of North American Bovine Spongiform Encephalopathy Positive
Cattle. April 29, available at http://www.aphis.usda.gov/[fxsp0]lpa/
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Requirements of Beef Cattle. 7th edition. National Academy Press.
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sci/a[fxsp0]hra/bseris/[fxsp0]bserise.shtml.
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personal communication, December.
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An Estimate of the Prevalence of BSE in the United States. July
2006, available at http://www.aphis.usda.gov/[fxsp0]newsroom/hot--
issues/bse/[fxsp0]bse--in--usa.shtml.
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Brorson. (2005). The clearance of viruses and transmissible
spongiform encephalopathy agents from biologicals. Current Opinion
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(2002b). Update of the opinion on TSE infectivity distribution in
ruminant tissues. November, available at http://www.europa.eu.int/[fxsp0
]comm/food/fs/[fxsp0]sc/ssc/out[fxsp0]296--en.pdf.
22. Food Safety and Inspection Service (FSIS) (2005). Federal
Register Volume 70, No. 173, 53043-53050. Interim final rule,
``Prohibition of the Use of Specified Risk Materials for Human Food
and Requirements for the Disposition of Non-Ambulatory Disabled
Cattle.'' Docket No. 03-025IFA. September 7. Page 53043, available
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cgi?position=all&[fxsp0]page=53043&[fxsp0]dbname=2005--register.
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Volume 70. Interim final rule and request for comments, ``Use of
Materials Derived From Cattle in Human Food and Cosmetics.'' Docket
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Derived From Cattle in Human Food and Cosmetics; and Recordkeeping
Requirements for Human Food and Cosmetics Manufactured From,
Processed With, or Otherwise Containing, Material From Cattle; Final
Rule and Proposed Rule (69 FR, No. 134, Wednesday, July 14, 2004,
pp. 42256-42285). October, available at http://www.fda.gov/[fxsp0
]ohrms/dockets/[fxsp0]dailys/04/oct04/[fxsp0]100604/04n-0081-
c00081-[fxsp0]01-vol12.pdf.
List of Subjects
9 CFR Part 93
Animal diseases, Imports, Livestock, Poultry and poultry products,
Quarantine, Reporting and recordkeeping requirements.
[[Page 1127]]
9 CFR Part 94
Animal diseases, Imports, Livestock, Meat and meat products, Milk,
Poultry and poultry products, Reporting and recordkeeping requirements.
9 CFR Part 95
Animal feeds, Hay, Imports, Livestock, Reporting and recordkeeping
requirements, Straw, Transportation.
9 CFR Part 96
Imports, Livestock, Reporting and recordkeeping requirements.
Accordingly, we are proposing to amend 9 CFR parts 93, 94, 95, and
96 as follows:
PART 93--IMPORTATION OF CERTAIN ANIMALS, BIRDS, AND POULTRY, AND
CERTAIN ANIMAL, BIRD, AND POULTRY PRODUCTS; REQUIREMENTS FOR MEANS
OF CONVEYANCE AND SHIPPING CONTAINERS
1. The authority citation for part 93 would continue to read as
follows:
Authority: 7 U.S.C. 1622 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. 93.405 [Amended]
2. In Sec. 93.405, paragraph (a)(4) would be amended by removing
the words ``feedlot or recognized slaughtering establishment'' and
adding in their place the words ``destination''.
3. Section 93.419 would be amended as follows:
a. Paragraphs (b) and (c) would be revised to read as set forth
below.
b. Paragraph (d) would be redesignated as paragraph (e).
c. A new paragraph (d) would be added to read as set forth below.
d. In newly designated paragraph (e)(2), the reference to
``paragraph (d)(7)'' would be removed and a reference to ``paragraph
(e)(7)'' would be added in its place.
Sec. 93.419 Sheep and goats from Canada.
* * * * *
(b) If the sheep or goats are unaccompanied by the certificate
required by paragraph (a) of this section, or if they are found upon
inspection at the port of entry to be affected with or exposed to a
communicable disease, they shall be refused entry and shall be handled
or quarantined, or otherwise disposed of, as the Administrator may
direct.
(c) Any sheep or goats imported from Canada must not be pregnant,
must be less than 12 months of age when imported into the United States
and when slaughtered, must be from a flock or herd subject to a
ruminant feed ban equivalent to the requirements established by the
U.S. Food and Drug Administration at 21 CFR 589.2000, and must be
individually identified by an official Canadian Food Inspection Agency
eartag applied before the animal's arrival at the port of entry into
the United States, that is determined by the Administrator to meet
standards equivalent to those for official eartags in the United States
as defined in Sec. 71.1 of this chapter and to be traceable to the
premises of origin of the animal. No person may alter, deface, remove,
or otherwise tamper with the individual identification while the animal
is in the United States or moving into or through the United States,
except that the identification may be removed at the time of slaughter.
The animals must be accompanied by the certification issued in
accordance with Sec. 93.405 that states, in addition to the statements
required by Sec. 93.405, that the conditions of this paragraph have
been met. Additionally, for sheep and goats imported for immediate
slaughter, the certificate must state that the conditions of paragraphs
(d)(1) through (d)(3) of this section have been met, and, for sheep and
goats imported for other than immediate slaughter, the certificate must
state that the conditions of paragraphs (e)(1) and (e)(2) of this
section have been met.
(d) Sheep and goats imported for immediate slaughter. Sheep and
goats imported from Canada for immediate slaughter must be imported
only through a port of entry listed in Sec. 93.403(b) or as provided
for in Sec. 93.403(f) in a means of conveyance sealed in Canada with
seals of the Canadian Government, and must be moved directly as a group
from the port of entry to a recognized slaughtering establishment for
slaughter as a group. The sheep and goats shall be inspected at the
port of entry and otherwise handled in accordance with Sec. 93.408.
The seals on the means of conveyance must be broken only at the port of
entry by the APHIS port veterinarian or at the recognized slaughtering
establishment by an authorized USDA representative. If the seals are
broken by the APHIS port veterinarian at the port of entry, the means
of conveyance must be resealed with seals of the U.S. Government before
being moved to the recognized slaughtering establishment. The shipment
must be accompanied from the port of entry to the recognized
slaughtering establishment by APHIS Form VS 17-33, which shall include
the location of the recognized slaughtering establishment.
Additionally, the sheep and goats must meet the following conditions:
(1) The animals have not tested positive for and are not suspect
for a transmissible spongiform encephalopathy;
(2) The animals have not resided in a flock or herd that has been
diagnosed with BSE; and
(3) The animals' movement is not restricted within Canada as a
result of exposure to a transmissible spongiform encephalopathy.
* * * * *
4. Section 93.420 would be revised to read as follows:
Sec. 93.420 Ruminants from Canada for immediate slaughter other than
bovines, sheep, and goats.
The requirements for the importation of sheep and goats from Canada
for immediate slaughter are contained in Sec. 93.419. The requirements
for the importation of bovines from Canada for immediate slaughter are
contained in Sec. 93.436. All other ruminants imported from Canada for
immediate slaughter, in addition to meeting all other applicable
requirements of this part, must be imported only through a port of
entry listed in Sec. 93.403(b) or as provided for in Sec. 93.403(f)
to a recognized slaughtering establishment for slaughter, in
conveyances that must be sealed with seals of the U.S. Government at
the port of entry. The seals may be broken only at a recognized
slaughtering establishment in the United States by an authorized USDA
representative. The shipment must be accompanied from the port of entry
to the recognized slaughtering establishment by APHIS Form VS 17-33,
which must include the location of the recognized slaughtering
establishment. Such ruminants shall be inspected at the port of entry
and otherwise handled in accordance with Sec. 93.408.
(Approved by the Office of Management and Budget under control number
0579-0277)
5. Section 93.436 would be amended as follows:
a. Paragraphs (a) and (b) would be revised to read as set forth
below.
b. In paragraph (c), the reference to ``Sec. Sec. 93.419(c) and
93.420'' would be removed and a reference to ``Sec. Sec. 93.405 and
93.419'' would be added in its place.
Sec. 93.436 Ruminants from regions of minimal risk for BSE.
* * * * *
(a) Bovines for immediate slaughter. Bovines from a region listed
in Sec. 94.18(a)(3) of this subchapter may be
[[Page 1128]]
imported for immediate slaughter under the following conditions:
(1) The bovines must have been born on or after a date determined
by APHIS to be the date of effective enforcement of a ruminant-to-
ruminant feed ban in the region of export. For bovines imported from
Canada, that date is March 1, 1999.
(2) Each bovine must be individually identified by an official
eartag of the country of origin, applied before the animal's arrival at
the port of entry into the United States, that is determined by the
Administrator to meet standards equivalent to those for official
eartags in this chapter and to be traceable to the premises of origin
of the animal. No person may alter, deface, remove, or otherwise tamper
with the official identification while the animal is in the United
States or moving into or through the United States, except that the
identification may be removed at the time of slaughter;
(3) The bovines must be accompanied by a certificate issued in
accordance with Sec. 93.405 that states, in addition to the statements
required by Sec. 93.405, that the conditions of paragraphs (a)(1) and
(a)(2) of this section have been met;
(4) The bovines must be imported only through a port of entry
listed in Sec. 93.403(b) or as provided for in Sec. 93.403(f). The
bovines shall be inspected at the port of entry and otherwise handled
in accordance with Sec. 93.408;
(5) The bovines must be moved directly from the port of entry to a
recognized slaughtering establishment. Bovines imported from Canada
must be moved to the slaughtering establishment in conveyances that are
sealed with seals of the U.S. Government at the port of entry. The
seals may be broken only at the recognized slaughtering establishment
by an authorized USDA representative; and
(6) The bovines must be accompanied from the port of entry to the
recognized slaughtering establishment by APHIS Form VS 17-33.
(b) Bovines for other than immediate slaughter. Bovines from a
region listed in Sec. 94.18(a)(3) of this subchapter may be imported
for other than immediate slaughter under the following conditions:
(1) The bovines must have been born on or after a date determined
by APHIS to be the date of effective enforcement of a ruminant-to-
ruminant feed ban in the region of export. For bovines imported from
Canada, that date is March 1, 1999.
(2) The bovines must be permanently and humanely identified before
arrival at the port of entry with a distinct and legible mark
identifying the exporting country. Acceptable means of permanent
identification include the following:
(i) A mark properly applied with a freeze brand, hot iron, or other
method, and easily visible on the live animal and on the carcass before
skinning. Such a mark must be not less than 2 inches nor more than 3
inches high, and must be applied to each animal's right hip, high on
the tail-head (over the junction of the sacral and first cocygeal
vertebrae). Bovines exported from Canada so marked must be marked with
``CAN'';
(ii) A tattoo with letters identifying the exporting country must
be applied to the inside of one ear of the animal. For bovines exported
from Canada, the tattoo must read ``CAN'';
(iii) Other means of permanent identification upon request if
deemed adequate by the Administrator to humanely identify the animal in
a distinct and legible way as having been imported from the BSE
minimal-risk exporting region.
(3) Each bovine must be individually identified by an official
eartag of the country of origin, applied before the animal's arrival at
the port of entry into the United States, that is determined by the
Administrator to meet standards equivalent to those for official
eartags in Sec. 71.1 of this chapter and to be traceable to the
premises of origin of the animal. No person may alter, deface, remove,
or otherwise tamper with the official identification while the animal
is in the United States or moving into or through the United States,
except that the identification may be removed at the time of slaughter;
(4) The bovines must be accompanied by a certificate issued in
accordance with Sec. 93.405 that states, in addition to the statements
required by Sec. 93.405, that the conditions of paragraphs (a)(1) and
(a)(2) of this section have been met; and
(5) The bovines must be imported only through a port of entry
listed in Sec. 93.403(b) or as provided for in Sec. 93.403(f).
* * * * *
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
6. The authority citation for part 94 would continue 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. 94.19 [Amended]
7. In Sec. 94.19, paragraphs (a)(2), (b)(2), and (f) would be
amended by removing the words ``and small intestine'' each time they
appear.
PART 95--SANITARY CONTROL OF ANIMAL BYPRODUCTS (EXCEPT CASINGS),
AND HAY AND STRAW, OFFERED FOR ENTRY INTO THE UNITED STATES
8. The authority citation for part 95 would continue to read as
follows:
Authority: 7 U.S.C. 8301-8317; 21 U.S.C. 136 and 136a; 31 U.S.C.
9701; 7 CFR 2.22, 2.80, and 371.4.
9. Section 95.4 would be amended as follows:
a. The heading and the paragraph (a) introductory text would be
revised to read as set forth below.
b. Paragraphs (e) through (h) would be redesignated as paragraphs
(f) through (i), respectively.
c. Paragraphs (a)(1)(ii) and (a)(1)(iv) would be revised to read as
set forth below.
d. In paragraph (b), the words ``paragraphs (d) and (h)'' would be
removed and the words ``paragraphs (d), (e), and (i)'' would be added
in their place.
e. Paragraph (d) introductory text would be revised to read as set
forth below.
f. New paragraph (e) would be added to read as set forth below.
g. In newly designated paragraph (h)(1)(i), the words ``and small
intestine'' would be removed.
h. In newly designated paragraph (i) introductory text, the words
``paragraphs (h)(1) through (h)(3)'' would be removed and the words
paragraphs ``paragraphs (i)(1) through (i)(3)'' would be added in their
place.
Sec. 95.4 Restrictions on the importation of processed animal
protein, offal, tankage, fat, glands, certain tallow other than tallow
derivatives, and blood and blood products due to bovine spongiform
encephalopathy.
(a) Except as provided in paragraphs (c) through (i) of this
section, the importation of the following is prohibited:
(1) * * *
(ii) Glands, unprocessed fat tissue, and blood and blood products
derived from ruminants;
* * * * *
(iv) Derivatives of glands and blood and blood products derived
from ruminants;
* * * * *
[[Page 1129]]
(d) Except as provided in paragraph (e) of this section, the
importation of serum albumin, serocolostrum, amniotic liquids or
extracts, and placental liquids derived from ruminants that have been
in any region listed in Sec. 94.18(a) of this chapter, and collagen
and collagen products that meet any of the conditions listed paragraphs
(a)(1) through (a)(3) of this section, is prohibited unless the
following conditions have been met:
* * * * *
(e) Bovine blood and blood products that are otherwise prohibited
importation under paragraph (a)(1) or (d) of this section may be
imported into the United States if they meet the following conditions:
(1) For blood collected at slaughter and for products derived from
blood collected at slaughter:
(i) The blood was collected in a closed system in which the blood
was conveyed directly from the animal in a closed conduit to a closed
receptacle, or was collected otherwise in an hygienic manner that
prevents contamination of the blood with SRMs.
(ii) The slaughtered animal passed ante-mortem inspection and was
not subjected to a pithing process or to a stunning process with a
device injecting compressed air or gas into the cranial cavity;
(2) For fetal bovine serum:
(i) The blood from which the fetal bovine serum was derived was
collected in a closed system in which the blood was conveyed directly
from the animal in a closed conduit to a closed receptacle, or was
collected otherwise in an hygienic manner that prevents contamination
of the blood with SRMs;
(ii) The dam of the fetal calf passed ante-mortem inspection and
was not subjected to a pithing process or to a stunning process with a
device injecting compressed air or gas into the cranial cavity;
(iii) The uterus was removed from the dam's abdominal cavity intact
and taken to a separate area sufficiently removed from the slaughtering
area of the facility to ensure that the fetal blood was not
contaminated with SRMs when collected.
(3) For blood collected from live donor bovines and for products
derived from blood collected from live donor bovines:
(i) The blood was collected in a closed system in which the blood
was conveyed directly from the animal in a closed conduit to a closed
receptacle, or was collected otherwise in a hygienic manner that
prevents contamination of the blood with SRMs;
(ii) The donor animal was free of clinical signs of disease.
(4) Each shipment to the United States is accompanied by an
original certificate signed by a full-time salaried veterinary officer
of the national government of the region of origin, or issued by a
veterinarian designated by or accredited by the national government of
the region of origin, representing that the veterinarian issuing the
certificate was authorized to do so. The certificate must state that
the requirements of paragraph (e)(1), (e)(2), or (e)(3) of this
section, as applicable, have been met.
* * * * *
PART 96--RESTRICTION OF IMPORTATIONS OF FOREIGN ANIMAL CASINGS
OFFERED FOR ENTRY INTO THE UNITED STATES
10. The authority citation for part 96 would continue to read as
follows:
Authority: 7 U.S.C. 8301-8317; 21 U.S.C. 136 and 136a; 7 CFR
2.22, 2.80, and 371.4.
11. In Sec. 96.1, new definitions of Food and Drug Administration
and Food Safety and Inspection Service would be added, in alphabetical
order, to read as follows:
Sec. 96.1 Definitions.
* * * * *
Food and Drug Administration. The Food and Drug Administration of
the United States Department of Health and Human Services.
Food Safety and Inspection Service. The Food Safety and Inspection
Service of the United States Department of Agriculture.
* * * * *
12. In Sec. 96.2, paragraph (b) would be revised to read as
follows:
Sec. 96.2 Prohibition of casings due to African swine fever and
bovine spongiform encephalopathy.
* * * * *
(b) Ruminant casings. The importation of casings, except stomachs,
from ruminants that originated in or were processed in any region
listed in Sec. 94.18(a) of this subchapter is prohibited, except as
provided in paragraphs (b)(1) and (b)(2) of this section:
(1) Casings that are derived from sheep that were slaughtered in a
region listed in Sec. 94.18(a)(3) of this subchapter at less than 12
months of age and that were from a flock subject to a ruminant feed ban
equivalent to the requirements established by the U.S. Food and Drug
Administration at 21 CFR 589.2000 may be imported.
(2) Casings that are derived from bovines that were slaughtered in
a region listed in Sec. 94.18(a)(3) of this subchapter may be
imported, provided, if the casings are derived from the small
intestine, the casings are derived from that part of the small
intestine that is eligible for use as human food in accordance with the
requirements established by the Food Safety and Inspection Service at 9
CFR 310.22 and the Food and Drug Administration at 21 CFR 189.5.
(3) Casings imported in accordance with either paragraph (b)(1) or
(b)(2) of this section must be accompanied by a certificate that:
(i) States that the casings meet the conditions of this section;
(ii) Is written in English;
(iii) Is signed by an individual eligible to issue the certificate
required under Sec. 96.3; and
(iv) Is presented to an authorized inspector at the port of entry.
(Approved by the Office of Management and Budget under control number
0579-0015)
13. In Sec. 96.3, paragraph (d) would be revised to read as
follows:
Sec. 96.3 Certificate for animal casings.
* * * * *
(d) In addition to meeting the requirements of this section, the
certificate accompanying sheep casings from a region listed in Sec.
94.18(a)(3) of this subchapter must state that the casings meet the
requirements of Sec. 96.2(b)(1) and the certificate accompanying
bovine casings from a region listed in Sec. 94.18(a)(3) of this
subchapter must state that the casings meet the requirements of Sec.
96.2(b)(2).
* * * * *
Done in Washington, DC, this 3rd day of January 2007.
Bruce Knight,
Under Secretary for Marketing and Regulatory Programs.
[FR Doc. 07-17 Filed 1-4-07; 3:00 pm]
BILLING CODE 3410-34-P