# Dairy Tariff-Rate Import Quota Licensing > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A95-10712 ## Record - **Collection:** Federal Register - **Document type:** Rule - **Published:** May 2, 1995 - **Citation:** 60 FR 21425 ## Text SUMMARY: This rule amends Import Regulation 1, Revision 7 which governs the administration of the import licensing system for certain dairy products which will be subject to in-quota tariff rates established in the Harmonized Tariff Schedule of the United States resulting from the entry into force of certain provisions in the Uruguay Round Agreement on July 1, 1995, and with respect to the licensing for certain dairy product shipments denied entry during January 1-3, 1995. DATES: This interim rule will be effective upon May 2, 1995. Comments should be submitted on or before June 16, 1995, to be assured of consideration. ADDRESSES: Comments should be sent to Richard Warsack, Dairy Import Quota Manager, Import Policies and Programs Division, Room 5531-S, Foreign Agricultural Service, U.S. Department of Agriculture, 14th and Independence Avenue, S.W., Agricultural Box 1025, Washington, D.C. 20250-1025. All comments received will be available for public inspection in room 5541-S at the above address. FOR FURTHER INFORMATION CONTACT: Diana Wanamaker, Group Leader, Import Programs Group, Import Policies and Programs Division, Room 5531-S, Foreign Agricultural Service, U.S. Department of Agriculture, 14th and Independence Avenue, S.W., Washington, D.C. 20250, or telephone (202) 720-2916. SUPPLEMENTARY INFORMATION: Executive Order 12866 This supplement to the interim rule is issued in conformance with Executive Order 12866. It has been determined to be significant for the purposes of E.O. 12866 and, therefore, has been reviewed by the Office of Management and Budget (OMB). Regulatory Flexibility Act It has been determined that the Regulatory Flexibility Act is not applicable to this interim rule relating to foreign affairs since the Office of the Secretary is not required by 5 U.S.C. 553 or any other provision of law to publish a notice of proposed rulemaking with respect to the subject matter of this rule. Executive Order 12372 This program is not subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. See notice related to 7 CFR part 3015, subpart V, published at 48 FR 29115 (June 24, 1983). Environmental Evaluation It has been determined by an environmental evaluation that this action will not have a significant impact on the quality of the human environment. Therefore, neither an Environmental Assessment nor an Environmental Impact Statement is needed. Paperwork Reduction Act This interim rule amends the existing information collection as approved by the Office of Management and Budget (OMB) pursuant to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.), under OMB control number 0551-0001, expiring June 30, 1997. Due to the time constraints of implementing this interim rule, the agency has requested emergency clearance of this addendum from OMB. Comments on the information collection may be sent to the Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10202, NEOB, Washington, D.C. 20503. Attention: Desk Officer for USDA. Executive Order 12778 This interim rule has been reviewed under Executive Order 12778. The provisions of this supplement to the interim rule would have preemptive effect with respect to any state or local laws, regulations, or policies which conflict with such provisions or which otherwise impede their full implementation. The interim rule would not have retroactive effect. Background This interim rule amends Import Regulation 1, Revision 7 which governs the administration of the import licensing system for certain dairy products which are subject to in-quota tariff rates proclaimed in the Harmonized Tariff Schedule of the United States (HTS). Imports of certain cheese and non-cheese dairy products are subject to tariff-rate quotas proclaimed in the HTS as a result of the entry into force of the Uruguay Round Agreement. These amendments to the Import Regulation are being published as an interim rule because the Uruguay Round commitments taking effect on July 1, 1995, were not finalized pursuant to bilateral agreements until recently and it is necessary to provide an application period as soon as possible in order to issue licenses prior to the effective date. With respect to certain dairy product shipments denied entry during January 1-3, 1995, these licenses must also be issued as soon as possible to fulfill our Uruguay Round commitments. Therefore, good cause is shown to publish this rule as interim without prior public participation. This interim rule is issued under the authority of section 103 and 404 of the Uruguay Round Agreements Act and the notes to Chapter 4 and General Note 15 of the HTS. It completes the Uruguay Round implementation process for the 1995 quota year by establishing the import licensing system for the quantities of cheese and non-cheese dairy products subject to in-quota tariff rates in the HTS effective July 1, 1995. The following changes made by this interim rule are intended to fulfill the Uruguay Round obligations of the United States and to facilitate the administration of the tariff-rate import quota licensing system for 1995. 1. The Import Regulation is amended to: (1) Administer Uruguay Round tariff-rate quotas for those countries whose Uruguay Round schedules of concessions will take effect on July 1, 1995; (2) establish Appendix 3 supplementary licenses for such [[Page 21426]] countries and the respective in-quota tariff-rate quota quantities of cheese, and (3) provide for an application period for such licenses. 2. The Import Regulation is amended to permit the European Community (EC) to endorse in writing eligible applicants for the increments in quantities of cheese subject to the in-quota tariff rate as provided for in the Uruguay Round Agreement. 3. The Import Regulation is also amended to ensure that the orderly marketing of trade in the United States is not disrupted for articles for which entry was attempted into the United States after January 1, 1995, without prior knowledge that an unlicensed article would be made subject to licensing as of January 1, 1995. This interim rule provides a very limited exclusion from license-size limitations for certain shipments which were denied entry into the United States by the U.S. Customs Service during a brief period the Department considers licensing to have been unanticipated. This exclusion applies only to that part of the in-quota tariff-rate quantity which had been unlicensed prior to January 1, 1995 and will be prorated among licensees as necessary. An Advance Notice of Proposed Rulemaking (ANPR) was published in the Federal Register on June 2, 1994, seeking comments on methods for allocating articles that would be subject to the in-quota tariff rate proclaimed in the HTS on January 1, 1995, and suggestions on other changes intended to update and make more enforceable the provisions of the Import Regulation. A proposed rule embodying fundamental changes to the Import Regulation as envisaged in the ANPR will be published in the near future. An interim rule was published in the Federal Register on January 6, 1995, which amended the Import Regulation to the extent necessary to implement the Uruguay Round commitments which became effective on January 1, 1995. The interim rule established an import licensing system for in-quota tariff-rate quota quantities of cheese and certain other non-cheese dairy products subject to in-quota tariff rates in the HTS. These quantities included both the quantities which were previously subject to absolute quotas under section 22 of the Agricultural Adjustment Act of 1933, as amended, and additional quantities of cheese and certain non-cheese dairy articles negotiated under the Uruguay Round of multilateral trade negotiations for those countries which implemented their Uruguay Round commitments on January 1, 1995. The interim rule provided for a 30-day public comment period ending on February 21, 1995. Written comments were received from seven different entities. In addition to amending the Import Regulation to implement the changes to the HTS effective on July 1, 1995, this interim rule amends the Import Regulation in accordance with certain comments on the interim rule published on January 6, 1995, recommending changes deemed both administratively possible or necessary to implement during the remainder of the 1995 quota year. Other comments on the January 6 interim rule will be considered for inclusion in the proposed rule as envisaged in the ANPR. The comment reflected herein requested entry for that quantity of butter substitutes being detained which was previously subject to an unlicensed global quota. The interim rule provides for a very limited and strict license size exclusion to enter certain butter substitutes. Another comment recommended clarifying the minimum license size of supplementary quota shares and certain article descriptions in Appendix 1 and Appendix 2 of the interim rule. This interim rule makes these technical corrections. List of Subjects in 7 CFR Part 6 Agricultural commodities, Cheese, Dairy products, Imports, and Reporting and record keeping requirements. Interim Rule PART 6--[AMENDED] Accordingly, 7 CFR Part 6, Subpart--Tariff-Rate Quotas is amended as follows: 1. Section 6.25 is revised by revising the first sentence of paragraph (c)(2) to read as follows: Sec. 6.25 Eligibility. * * * * * (c) * * * (2) Notwithstanding paragraph (b)(4) of this section, certification required to establish supplementary eligibility for license for articles under Appendix 3 of this subpart must be postmarked no earlier than January 30, 1995 and no later than February 20, 1995 for those licenses issued for in-quota tariff-rate quota quantities which became effective on January 1, 1995, and no earlier than May 10, 1995 and no later than May 19, 1995 for those licenses that will be issued for in- quota tariff-rate quota quantities that will become effective on July 1, 1995. * * * * * * * * 2. Section 6.26 is amended by revising the second sentence of paragraph (c)(3)(ii), revising paragraph (d)(2), and revising paragraph (d)(3) (i) and (ii) to read as follows: Sec. 6.26 Allocation of annual quota and issuance of licenses. * * * * * (c) * * * (3) * * * (ii) * * * If eligible applicants whose applications have been endorsed by the government of the supplying country as set forth in (c)(3)(i) of this section request an aggregate amount of a specific quota from a specific country (not the EC, except for those additional quantities of cheese made subject to the in-quota tariff rate in the Uruguay Round Agreement) smaller than is available for allocation, or if no endorsement is made, the Licensing Authority shall allocate remaining portions among applicants who have not been endorsed, following a procedure identical to that set forth in paragraph (c)(2) of this section for the EC, replacing, for this purpose, the words ``the EC'' wherever they appear with ``a particular non-EC country''. * * * * * (d) * * * (2) The size of a supplementary quota share issued to an eligible applicant shall not exceed 57,000 kilograms, except that this maximum share provided for in (d)(ii) above shall not be applicable to that quantity of an in-quota tariff-rate quota which was not subject to licensing prior to January 1, 1995 when the import of such product was offered for entry and denied entry into the United States by U.S. Customs during January 1-3, 1995. Not later than June 1, 1995, an applicant must submit with its application, an invoice, bill of lading, and other relevant documentation to the Licensing Authority for his determination that there is sufficient documentary evidence that such import was offered for entry during January 1-3, 1995. If the Licensing Authority determines that a quantity greater than that available is requested by eligible applicants, the quantity available will be prorated among the licensees. (3) * * * (i) 19,000 kilograms where the total amount available for allocation is 550,000 kilograms or less; (ii) 38,000 kilograms where the total amount available for allocation is greater than 550,000 kilograms. 3. In Appendix 1, the article description for Edam and Gouda in Group II(a) and the article description for Italian-type cheese in Group IV(a) are revised as follows: [[Page 21427]] Appendix 1--Articles Subject to the Historical and Nonhistorical Licensing Provisions of Import Regulation 1, Revision 7, and Respective Annual Import Quotas for Each Quota Year * * * * * Group II (a) Edam and Gouda cheese, and cheese and substitutes for cheese containing, or processed from Edam and Gouda cheese (Note 20) * * * * * * * * Group IV (a) Italian-type cheese made from cow's milk (Romano made from cow's milk, Reggiano, Parmesano, Provolone, Provolette, Sbrinz, and Goya not in original loaves), and cheeses and substitutes for cheese containing, or processed from, such Italian-type cheeses, whether or not in original loaves (Note 21) * * * * * * * * 4. In Appendix 2, the article description for Italian-type cheese in Group IV (a) is revised as follows: Appendix 2--Articles Subject to the Historical and Nonhistorical Licensing Provisions of Import Regulation 1, Revision 7, and Respective Annual Import Quotas for Each Quota Year * * * * * Group IV (a) Italian-type cheese made from cow's milk (Romano made from cow's milk, Reggiano, Parmesano, Provolone, Provolette, Sbrinz, and Goya not in original loaves), and cheeses and substitutes for cheese containing, or processed from, such Italian-type cheeses, whether or not in original loaves (Note 21) * * * * * * * * 5. Appendix 3 is revised to read as follows: Appendix 3--Articles Subject to the Supplementary Licensing Provisions of Import Regulation 1, Revision 7, and Respective Annual Import Quotas for Each Quota Year ------------------------------------------------------------------------ Annual supplementary Article by HTS note number quota (kilograms) ------------------------------------------------------------------------ Butter (Note 6)......................................... 3,656,311 Dried Skim Milk (Note 7)................................ 441,359 Dried Whole Milk (Note 8)............................... 368,125 Butter Substitutes Containing over 45% by weight of butterfat and butteroil (Note 14)...................... 3,480,500 Cheese and substitutes for cheese (except cheese not containing cow's milk and soft ripened cow's milk cheese, cheese (except cottage cheese) containing 0.5 percent or less by weight of butterfat, and articles within the scope of other tariff-rate quotas provided for in this subchapter) (Note 16)...................... 2,978,834 Australia........................................... 291,667 Austria............................................. 45,500 Costa Rica.......................................... 1,000,000 Czech Republic...................................... 200,000 EC.................................................. 150,000 Poland*............................................. 300,000 Slovak Republic..................................... 600,000 Switzerland......................................... 41,667 Uruguay............................................. 250,000 Any Country......................................... 100,000 Blue-mold cheese (except Stilton produced in the United Kingdom) and cheese and substitutes for cheese containing, or processed from, blue-mold cheese (Note 17).................................................... 88,333 Chile............................................... 13,333 Czech Republic...................................... 50,000 EC.................................................. 25,000 Cheddar cheese, and cheese and substitutes for cheese containing, or processed from, Cheddar cheese (Note 18) 1,328,333 Australia........................................... 208,333 EC.................................................. 83,333 Chile............................................... 36,667 Czech Republic...................................... 50,000 New Zealand......................................... 850,000 Any Country......................................... 100,000 American-type cheese, including Colby, washed curd, and granular cheese (but not including cheddar) and cheese and substitutes for cheese containing or processed from such American-type cheese (Note 19).................... 8,333 EC.................................................. 8,333 Edam and Gouda cheese, and cheese and substitutes for cheese containing, or processed from, Edam and Gouda Cheese (Note 20)....................................... 293,333 Argentina........................................... 110,000 Austria............................................. 33,333 EC.................................................. 50,000 Czech Republic...................................... 100,000 Italian-Type cheeses, made from cow's milk (Romano made from cow's milk, Reggiano, Parmesan, Provolone, Provoletti, Sbrinz, and Goya not in original loaves) and cheese and substitutes for cheese containing, or processed from, such Italian-Type cheeses, whether or not in original loaves (Note 21)....................... 4,281,666 Argentina........................................... 1,890,000 EC.................................................. 58,333 Uruguay............................................. 750,000 Hungary............................................. 400,000 Poland*............................................. 1,100,000 Romania............................................. 83,333 Swiss and Emmenthaler cheese other than with eye formation Gruyere-process, and cheese and substitutes for cheese containing, or processed from such cheese (Note 22).............................................. 31,666 Austria............................................. 6,666 EC.................................................. 25,000 Swiss and Emmenthaler cheese with eye formation (Note 25).................................................... 1,043,332 [[Page 21428]] Austria............................................. 18,333 EC.................................................. 58,333 Sweden.............................................. 150,000 Switzerland......................................... 16,666 Czech Republic...................................... 400,000 Hungary............................................. 400,000 ------------------------------------------------------------------------ *Issuance of licenses and quota quantities are conditioned on completion of a bilateral memorandum of understanding between the Governments of the United States and Poland. Signed at Washington, D.C., on April 21, 1995. Richard E. Rominger, Acting Secretary of Agriculture. [FR Doc. 95-10712 Filed 4-27-95; 12:36 pm] BILLING CODE 3410-02-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A95-10712. Public record. Not legal advice.