Pork Promotion and Research

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1230

RIN 0581-AB17

[No. LS-94-002]

Pork Promotion and Research

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer

Information Act (Act) of 1985 and the Order issued thereunder, this

proposed rule would increase the amount of the assessment per pound due

on imported pork and pork products to reflect an increase in the 1993

six market average price for domestic barrows and gilts. This proposed

action would bring the equivalent market value of the live animals from

which such imported pork and pork products were derived in line with

the market values of domestic porcine animals. This proposed rule also

would revise the Harmonized Tariff System (HTS) numbers which identify

imported live porcine animals, pork, and pork products to conform with

recent changes in these numbers made by the United States Customs

Service (USCS). These proposed changes will facilitate the continued

collection of assessments on imported porcine animals, pork, and pork

products.

DATES: Comments must be received by June 13, 1994.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief;

Marketing Programs Branch; Livestock and Seed Division; Agricultural

Marketing Service (AMS), USDA, room 2624-S; P.O. Box 96456; Washington,

DC 20090-6456. Comments will be available for public inspection during

regular business hours at the above office in room 2624 South Building;

14th and Independence Avenue, SW.; Washington, DC.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing

Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION: The Department is issuing this proposed rule

in conformance with Executive Order 12866.

This proposed rule has been reviewed under Executive Order 12778,

Civil Justice Reform. This proposal is not intended to have a

retroactive effect. The Act states that the statute is intended to

occupy the field of promotion and consumer education involving pork and

pork products and of obtaining funds thereof from pork producers and

that the regulation of such activity (other than a regulation or

requirement relating to a matter of public health or the provision of

State or local funds for such activity) that is in addition to or

different from the Act may not be imposed by a State.

The Act provides that administrative proceedings must be exhausted

before parties may file suit in court. Under Sec. 1625 of the Act, a

person subject to an order may file a petition with the Secretary

stating that such order, a provision of such order or an obligation

imposed in connection with such order is not in accordance with law;

and requesting a modification of the order or an exemption from the

order. Such person is afforded the opportunity for a hearing on the

petition. After the hearing, the Secretary would rule on the petition.

The Act provides that the district court of the United States in the

district in which person resides or does business has jurisdiction to

review the Secretary's determination, if a complaint is filed not later

than 20 days after the date such person receives notice of such

determination.

This action also was reviewed under the Regulatory Flexibility Act

(RFA) (5 U.S.C. 601 et seq.). The effect of the Order upon small

entities was discussed in the September 5, 1986, issue of the Federal

Register (51 FR 31898), and it was determined that the Order would not

have a significant effect upon a substantial number of small entities.

Many importers may be classified as small entities. This proposed rule

would increase the amount of assessments on imported pork and pork

products subject to assessment by two-hundredths of a cent per pound,

or as expressed in cents per kilogram, four-hundredths of a cent per

kilogram. Adjusting the assessments on imported pork and pork products

would result in an estimated increase in assessments of $143,000 over a

12-month period. Accordingly, the Administrator of AMS has determined

that this action would not have a significant economic impact on a

substantial number of small entities. This proposed rule would also

revise HTS numbers for imported porcine animals, pork, and pork

products subject to assessment from 11 digits to 10 digits to conform a

change in those HTS numbers made by USCS. The change made in the number

of digits in HTS numbers is merely a technical change and will not

impose any new requirements on importers.

The Act (7 U.S.C. 4801-4819) approved December 23, 1985, authorized

the establishment of a national pork promotion, research, and consumer

information program. The program was funded by an initial assessment

rate of 0.25 percent of the market value of all porcine animals

marketed in the United States and an equivalent amount of assessment on

imported porcine animals, pork, and pork products. However, that rate

was increased to 0.35 percent effective December 1, 1991 (56 FR 51635).

The final Order establishing a pork promotion, research, and consumer

information program was published in the September 5, 1986, issue of

the Federal Register (51 FR 31898; as corrected, at 51 FR 36383 and

amended at 53 FR 1909, 53 FR 30243, 56 FR 4, and 56 FR 51635) and

assessments began on November 1, 1986.

The Order requires importers of porcine animals to pay USCS, upon

importation, the assessment of 0.35 percent of the animal's declared

value and importers of pork and pork products to pay USCS, upon

importation, the assessment of 0.35 percent of the market value of the

live porcine animals from which such pork and pork products were

produced. This proposed rule would increase the assessments on all of

the imported pork and pork products subject to assessment listed in 7

CFR 1230.110 (September 8, 1993; 58 FR 47205). This increase is

consistent with the increase in the annual average price of domestic

barrows and gilts for calendar year 1993 as reported by USDA, AMS,

Livestock and Grain Market News (LGMN) Branch. This increase in

assessments would make the equivalent market value of the live porcine

animal from which the imported pork and pork products were derived

reflect the recent increase in the market value of domestic porcine

animals, thereby promoting comparability between importer and domestic

assessments. This proposed rule would not change the current assessment

rate of 0.35 percent of the market value.

The methodology for determining the per-pound amounts for imported

pork and pork products was described in the Supplementary Information

accompanying the Order and published in the September 5, 1986, Federal

Register at 51 FR 31901. The weight of imported pork and pork products

is converted to a carcass weight equivalent by utilizing conversion

factors which are published in the USDA Statistical Bulletin No. 616

``Conversion Factors and Weights and Measures.'' These conversion

factors take into account the removal of bone, weight lost in cooking

or other processing, and the nonpork components of pork products.

Secondly, the carcass weight equivalent is converted to a live animal

equivalent weight by dividing the carcass weight equivalent by 70

percent, which is the average dressing percentage of porcine animals in

the United States. Thirdly, the equivalent value of the live porcine

animal is determined by multiplying the live animal equivalent weight

by an annual average market price for barrows and gilts as reported by

USDA, AMS, LGMN Branch. The annual average price, which was based on

price data from seven major markets, is now based on only six markets.

One of the seven markets--Kansas City--closed in 1991; and thus the

1992 and 1993 annual average prices are based on price data from only

six markets. This average price is published on a yearly basis during

the month of January in LGMN Branch's publication ``Livestock, Meat,

and Wool Weekly Summary and Statistics.'' Finally, the equivalent value

is multiplied by the applicable assessment rate of 0.35 percent due on

imported pork and pork products. The end result is expressed in an

amount per pound for each type of pork or pork product. To determine

the amount per kilogram for pork and pork products subject to

assessment under the Act and Order, the cent-per-pound assessments are

multiplied by a metric conversion factor 2.2046 and carried to the

sixth decimal.

The formula in the preamble for the Order at 51 FR 31901

contemplated that it would be necessary to recalculate the equivalent

live animal value of imported pork and pork products to reflect changes

in the annual average price of domestic barrows and gilts to maintain

equity of assessments between domestic porcine animals and imported

pork and pork products.

The average annual market price increased from $42.11 in 1992 to

$45.32 in 1993, an increase of about 7 percent. This increase would

result in a corresponding increase in assessments for all HTS numbers

listed in the table in Sec. 1230.110 of an amount equal to two-

hundredths of a cent per pound, or as expressed in cents per kilogram,

four-hundredths of a cent per kilogram. Based on the most recent

available Department of Commerce, Bureau of Census, data on the total

dollar value of imported pork and pork products subject to the

assessment in 1993 the proposed increase in assessment amounts would

result in an estimated $143,000 increase in assessments over a 12-month

period.

USCS recently revised HTS numbers to conform with changes in

importation procedures. The change is only a minor technical change

which revises all HTS numbers for live porcine animals, pork, and pork

products listed in the table found at Sec. 1230.110 (58 FR 47205) by

changing them from 11 digit numbers to 10 digit numbers by dropping the

last digit. The live porcine animals, pork, and pork products subject

to assessment and HTS article descriptions listed in a chart contained

in the Supplementary Information section on page 15914 of the final

rule (54 FR 15914) would not change. A comparison of the 11 digit

numbers and the proposed 10 digit numbers are listed in the following

chart.

Live Porcine Animals

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11-Digit No. 10-Digit No.

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0103.10.00004 0103.10.0000

0103.91.00006 0103.91.0000

0103.92.00005 0103.92.0000

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Pork and Pork Products

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11-Digit No. 10-Digit No.

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0203.11.00002...................... 0203.11.0000

0203.12.10107...................... 0203.12.1010

0203.12.10205...................... 0203.12.1020

0203.12.90100...................... 0203.12.9010

0203.12.90208...................... 0203.12.9020

0203.19.20108...................... 0203.19.2010

0203.19.20901...................... 0203.19.2090

0203.19.40104...................... 0203.19.4010

0203.19.40907...................... 0203.19.4090

0203.21.00000...................... 0203.21.0000

0203.22.10007...................... 0203.22.1000

0203.22.90000...................... 0203.22.9000

0203.29.20008...................... 0203.29.2000

0203.29.40004...................... 0203.29.4000

0206.30.00006...................... 0206.30.0000

0206.41.00003...................... 0206.41.0000

0206.49.00005...................... 0206.49.0000

0210.11.00101...................... 0210.11.0010

0210.11.00209...................... 0210.11.0020

0210.12.00208...................... 0210.12.0020

0210.12.00404...................... 0210.12.0040

0210.19.00103...................... 0210.19.0010

0210.19.00906...................... 0210.19.0090

1601.00.20105...................... 1601.00.2010

1601.00.20908...................... 1601.00.2090

1602.41.20203...................... 1602.41.2020

1602.41.20409...................... 1602.41.2040

1602.41.90002...................... 1602.41.9000

1602.42.20202...................... 1602.42.2020

1602.42.20408...................... 1602.42.2040

1602.42.40002...................... 1602.42.4000

1602.49.20009...................... 1602.49.2000

1602.49.40005...................... 1602.49.4000

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This change would permit USCS to continue to collect assessments

due on imported live porcine animals, pork, and pork products in

conjunction with its regular importation processing and collection

system.

List of Subjects in 7 CFR Part 1230

Administrative practice and procedure, Advertising, Agricultural

research, Marketing agreement, Meat and meat products, Pork and pork

products.

For the reasons set forth in the preamble, it is proposed that 7

CFR part 1230 be amended as set forth below:

PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION

1. The authority citation for 7 CFR 1230 continues to read as

follows:

Authority: 7 U.S.C. 4801-4819.

Subpart B--[Amended]

2. Subpart B--Rules and Regulations is amended by revising

Sec. 1230.110 to read as follows:

Sec. 1230.110 Assessments on Imported Pork and Pork Products.

(a) The following HTS categories of imported live porcine animals

are subject to assessment at the rate specified.

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Live porcine animals Assessment

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0103.10.0000....................... 0.35 percent Customs Entered Value.

0103.91.0000....................... 0.35 percent Customs Entered Value.

0103.92.0000....................... 0.35 percent Customs Entered Value.

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The following HTS categories of imported pork and pork products are

subject to assessment at the rates specified.

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Assessment

Pork and pork products ---------------------

cents/lb cents/kg

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0203.11.0000...................................... .23 .507058

0203.12.1010...................................... .23 .507058

0203.12.1020...................................... .23 .507028

0203.12.9010...................................... .23 .507028

0203.12.9020...................................... .23 .507028

0203.19.2010...................................... .26 .573196

0203.19.2090...................................... .26 .573196

0203.19.4010...................................... .23 .507028

0203.19.4090...................................... .23 .507028

0203.21.0000...................................... .23 .507028

0203.22.1000...................................... .23 .507028

0203.22.9000...................................... .23 .507028

0203.29.2000...................................... .26 .573196

0203.29.4000...................................... .23 .507028

0206.30.0000...................................... .23 .507028

0206.41.0000...................................... .23 .507028

0206.49.0000...................................... .23 .507028

0210.11.0010...................................... .23 .507028

0210.11.0020...................................... .23 .507028

0210.12.0020...................................... .23 .507028

0210.12.0040...................................... .23 .507028

0210.19.0010...................................... .26 .573196

0210.19.0090...................................... .26 .573196

1601.00.2010...................................... .31 .683426

1601.00.2090...................................... .31 .683426

1602.41.2020...................................... .34 .749564

1602.41.2040...................................... .34 .749564

1602.41.9000...................................... .23 .507028

1602.42.2020...................................... .34 .749564

1602.42.2040...................................... .34 .749564

1602.42.4000...................................... .23 .507028

1602.49.2000...................................... .31 .683426

1602.49.4000...................................... .26 .573196

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Dated: May 5, 1994.

Lon Hatamiya,

Administrator.

[FR Doc. 94-11491 Filed 5-12-94; 8:45 am]

BILLING CODE 3410-02-P