[Federal Register Volume 75, Number 235 (Wednesday, December 8, 2010)]
[Rules and Regulations]
[Pages 76253-76254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30714]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 /
Rules and Regulations
[[Page 76253]]
DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 6
RIN 0551-AA70
Dairy Import Licensing Program
AGENCY: Office of the Secretary, USDA.
ACTION: Final rule.
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SUMMARY: This final rule amends the historical license reduction
provisions of the Dairy Tariff-Rate Import Quota Licensing Program 7
CFR part 6, by suspending the provisions with respect to the reduction
of historical licenses based on surrenders of unused quantities until
2016.
DATES: Effective Date: January 1, 2011.
FOR FURTHER INFORMATION CONTACT: Ron Lord, Branch Chief, Sugar and
Dairy Branch, Import and Trade Support Programs Division, Foreign
Agricultural Service, Stop 1021, 1400 Independence Avenue, SW.,
Washington, DC 20250-1021; telephone (202) 720-6939; or e-mail at:
[email protected].
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The final rule has been determined to be not significant under E.O.
12866 and has been reviewed by the Office of Management and Budget.
Regulatory Flexibility Act
The Regulatory Flexibility Act ensures that regulatory and
information requirements are tailored to the size and nature of small
businesses, small organizations, and small governmental jurisdictions.
This final rule will not have a significant economic impact on small
businesses participating in the program.
Executive Order 12988
This final rule has been reviewed under Executive Order 12988. The
provisions of this final rule would not have a preemptive effect with
respect to any State or local laws, regulations, or policies which
conflict with such provision or which otherwise impede their full
implementation. The final rule would not have a retroactive effect.
Before any judicial action may be brought forward regarding this final
rule, all administrative remedies must be exhausted.
National Environmental Policy Act
The Administrator has determined that this action will not have a
significant effect on the quality of the human environment. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is necessary for this final rule.
Unfunded Mandates Reform Act (Pub. L. 104-4)
Public Law 104-4 requires consultation with State and local
officials and Indian Tribal governments. This final rule does not
impose an unfunded mandate or any other requirement on State, local, or
Tribal governments. Accordingly, these programs are not subject to the
provisions of the Unfunded Mandates Reform Act.
Executive Order 12630
This Order requires careful evaluation of governmental actions that
interfere with constitutionally protected property rights. This final
rule would not interfere with any property rights and, therefore, does
not need to be evaluated on the basis of the criteria outlined in
Executive Order 12630.
Government Paperwork Elimination Act
Foreign Agricultural Service (FAS) is committed to compliance with
the Government Paperwork Elimination Act, which requires government
agencies, in general, to provide the public the option of submitting
information or transacting business electronically to the maximum
extent possible.
Background
FAS administers the Dairy Tariff-Rate Import Quota Licensing
Program, 7 CFR 6.20-6.37, that provides for the issuance of licenses to
import certain dairy articles under tariff-rate quotas (TRQ), as
established in the Harmonized Tariff Schedule of the United States.
These dairy products may only be imported into the United States at the
in-quota rate, by or for the account of a person or firm to whom such
licenses have been issued, and only in accordance with the terms and
conditions of the program. Section 6.25(b)(1)(i) provides that if a
licensee surrenders more than 50 percent of a historical license at
least 3 out of the 5 prior years, that license will be permanently
reduced to the average amount entered during those 5 years. Any amounts
permanently reduced are transferred to the non-historical quota, which
is allocated by a lottery. In 2008, the Secretary amended the
regulation, suspending section 6.25(b)(1)(i) for 2 years until January
1, 2011. Subsequent market developments have caused the Department to
again re-consider the license reduction provisions of the Dairy Import
Licensing Program.
Summary of public comments: The Secretary published a proposed rule
in the Federal Register (75 FR 62692-23), October 13, 2010, providing
that the provisions of 7 CFR 6.25, with respect to the reduction of
historical licenses, based on unused amounts would be suspended for an
additional 5 years until 2016. The Department requested that public
comments be submitted by November 12, 2010. Comments were submitted by
29 importing companies, 3 associations, a counsel to the Cheese
Importers Association of America and several of its member companies, a
customs broker, a manufacturer of dairy products, and a Congressman all
in favor of the proposed 5-year suspension of the dairy import license
reduction provision.
The factors cited in favor of a further 5-year suspension included
the declining availability of cheese from the European Union (EU), a
weaker U.S. dollar, and the general economic weakness in the United
States. Some companies with historical licenses stated that the U.S.
food market benefits from reliable and longer-term supply-chain
relationships which may be more easily maintained by companies which
have historical licenses.
Many of the companies emphasized that a 5-year suspension of the
historical license reduction provision would allow additional time for
license holders to adjust to economy-wide factors outside their
control, including changes in the
[[Page 76254]]
EU's supply and demand situation for dairy products, as well as to
changes in the U.S. market.
Conclusion: The quota-fill rates for Swiss, Gruyere, and low-fat
type cheeses have continued to remain low even after transfer to the
lottery system in recent years. Market conditions are always subject to
fluctuation and change, and it is incumbent upon all license holders to
adjust to these changing conditions. To allow additional time to adjust
to changes in EU supply and demand, due to its long-term dairy policy
changes, the Department will again temporarily suspend the historical
license reduction provisions for a period of 5 years, commencing
January 1, 2011. Historical license reductions will again be
implemented beginning 2016, as set forth in the proposed rule. In 2016,
historical license reductions will be based on import data from years
2011 through 2015.
List of Subjects in 7 CFR Part 6
Agricultural commodities, Cheese, Dairy products, and Imports.
0
For the reasons set out in the preamble, 7 CFR part 6 is amended as
follows:
PART 6--IMPORT QUOTAS AND FEES
Subpart--Dairy Tariff-Rate Import Quota Licensing
0
1. The authority citation for part 6 subpart--Dairy Tariff-Rate Import
Quota Licensing, continues to read as follows:
Authority: Additional U.S. Notes 6, 7, 8, 12, 14, 16-23, and 25
to Chapter 4 and General Note 15 of the Harmonized Tariff Schedule
of the United States (19 U.S.C. 1202), Pub. L. 97-258, 96 Stat.
1051, as amended (31 U.S.C. 9701), and secs. 103 and 404, Pub. L.
103-465, 108 Stat. 4819 (19 U.S.C. 3513 and 3601).
0
2. Section 6.25 (b) is revised to read as follows:
Sec. 6.25 Allocation of Licenses.
* * * * *
(b) Historical licenses for the 2011 and subsequent quota years
(Appendix 1).
(1) A person issued a historical license for the 2010 quota year
will be issued a historical license in the same amount for the same
article from the same country for the 2011 quota year and for each
subsequent quota year except that:
(i) Beginning with the 2016 quota year, a person who has
surrendered more than 50 percent of such historical license in at least
three of the prior 5 quota years will thereafter be issued a license in
an amount equal to the average annual quantity entered during those 5
quota years.
(ii) [Reserved]
* * * * *
Issued at Washington, DC, the 30th day of November 2010.
Robert Riemenschneider,
Acting Administrator, Foreign Agricultural Service.
[FR Doc. 2010-30714 Filed 12-7-10; 8:45 am]
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