Uruguay; Change in Disease Status

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 94

[Docket No. 95-050-2]

Uruguay; Change in Disease Status

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

[[Page 55441]]

SUMMARY: We are amending the regulations to declare Uruguay free of

rinderpest and foot-and-mouth disease. As part of this action, we are

adding Uruguay to the list of countries that, although declared free of

rinderpest and foot-and-mouth disease, are subject to restrictions on

meat and other animal products offered for importation into the United

States. Declaring Uruguay free of rinderpest and foot-and-mouth disease

is appropriate because the last outbreak of foot-and-mouth disease in

Uruguay occurred in 1990, there have been no vaccinations for foot-and-

mouth disease in Uruguay since June 1994, and rinderpest has never

existed in Uruguay. This rule will remove the prohibition on the

importation into the United States, from Uruguay, of ruminants and

fresh, chilled, and frozen meat of ruminants, although those

importations would be subject to certain restrictions. This rule will

also relieve certain prohibitions and restrictions on the importation,

from Uruguay, of milk and milk products of ruminants.

EFFECTIVE DATE: November 16, 1995.

FOR FURTHER INFORMATION CONTACT: Dr. John Blackwell, Senior Staff

Microbiologist, Import/Export Products, National Center for Import and

Export, VS, APHIS, 4700 River Road Unit 40, Riverdale, MD 20737-1231,

(301) 734-5875.

SUPPLEMENTARY INFORMATION:

Background

The regulations in 9 CFR 94 (referred to below as the regulations)

govern the importation into the United States of specified animals and

animal products in order to prevent the introduction into the United

States of various animal diseases, including rinderpest and foot-and-

mouth disease (FMD). Rinderpest and FMD are dangerous and destructive

communicable diseases of ruminants and swine.

On August 4, 1995, we published in the Federal Register (60 FR

39890-39893, Docket No. 95-050-1) a proposal to amend the regulations

by adding Uruguay to list in Sec. 94.1(a)(2) of countries declared to

be free of both rinderpest and FMD. In that document, we also proposed

to add Uruguay to the list in Sec. 94.11(a) of countries that, although

declared free of rinderpest and FMD, are subject to special

restrictions on the importation of their meat and other animal products

into the United States.

We solicited comments concerning our proposal for 60 days ending

October 3, 1995. We received 7 comments by that date. They were from

industry associations, a beef importer, a meat-food processor, and

representatives of the government of Uruguay. We carefully considered

all of the comments we received. All comments were supportive of the

proposed rule. However, one of the commenters requested additional

information about some specific provisions of the proposed rule. That

comment is discussed below.

Comment: The proposed rule did not completely review Sec. 94.11 and

the relevant elements of 9 CFR chapter 3 so we could efficiently review

the existing regulations. The final rule must address the following key

issues so we can fully understand the scope of efforts taken to reduce

the risk of FMD:

(1) Uruguay must maintain strict border control.

(2) Uruguay must have a significant veterinary infrastructure

including monitoring and surveillance for FMD. The Animal and Plant

Health Inspection Service (APHIS) should have a presence in Uruguay to

verify compliance efforts.

(3) There should be no commingling of animals or animal products,

nor opportunity for commingling.

(4) APHIS should conduct ongoing assessments of the production

capacity of Uruguay to provide early indication of efforts to

circumvent restrictions regarding commingling of animals and animal

products from other countries.

(5) All meat must be completely deboned and of the proper pH prior

to export to ensure that FMD is neither present nor viable.

(6) Uruguayan slaughter and processing plants qualified to export

to the United States must process meat and other animal products in

accordance with all United States Department of Agriculture (USDA) and

Food and Drug Administration regulations.

(7) APHIS must be prepared to act promptly if there is a foreign

animal disease outbreak in the United States.

Response: In 1994, a team of APHIS officials traveled to Uruguay to

conduct an on-site evaluation of the country's animal health program

with regard to the rinderpest and FMD situation in Uruguay. The

evaluation consisted of a review of Uruguay's veterinary services,

diagnostic procedures, vaccination practices, and administration of

laws and regulations intended to prevent the introduction of rinderpest

and FMD into Uruguay through the importation of animals, meat, or

animal products. The APHIS officials conducting the on-site evaluation

concluded that Uruguay is free of rinderpest and FMD and that the

country's veterinary infrastructure is exemplary.

The United States and Uruguay both belong to the Organization

Internationale des Epizooties (OIE). Uruguay is required to report

changes in animal health status to the OIE, and any such changes would

be reported to the United States. In addition, the Food Safety and

Inspection Service (FSIS), USDA, performs periodic inspections of the

USDA-approved plants. APHIS can inquire of FSIS regarding the general

condition of the plants and the health status of animals going to

slaughter in the plants.

Further, the APHIS officials who visited Uruguay in 1994 evaluated

all border crossing points and determined that the country's veterinary

infrastructure is sufficient to maintain them. The regional sanitary

situation also reduces the risk of FMD spreading into Uruguay.

Argentina has not detected a focus of FMD since April of 1994. The last

cases of FMD in the Brazilian States of Santa Catalina and Rio Grande

do Sul occurred in December of 1993. Paraguay has recently completed

one full year of clinical absence of the disease in all of its

territory. Rinderpest has never occurred in Argentina, Brazil, or

Paraguay.

Uruguay shares a common land border with countries that have not

been declared free of FMD. Uruguay also supplements its national meat

supply by importing fresh, chilled, and frozen meat of ruminants and

swine from countries where rinderpest or FMD exists. Therefore,

although Uruguay is free of rinderpest and FMD, Uruguay's meat and

animal products are still subject to Sec. 94.11 and parts of chapter 3

of 9 CFR. Section 94.11 requires that meat and other animal products

imported into the United States from Uruguay are accompanied by a

health certificate signed by a veterinary official of Uruguay

confirming that they have not been commingled, directly or indirectly,

with meat or animal products from a country where rinderpest or FMD

exists. Section 94.11 and chapter 3 of 9 CFR require that meat and

other animal products consigned to the United States by Uruguay must

also be accompanied by a Department-approved foreign meat inspection

certificate to ensure that they were derived from livestock which was

inspected by a veterinarian before and after slaughter, were handled in

a sanitary manner, and were otherwise in accordance with requirements

equivalent to those in the Federal Meat Inspection Act and related

regulations. In addition, chapter 3 requires that slaughtering and

processing establishments in Uruguay must be certified in order to have

their products imported into the United States. Certifications of

establishments must be

[[Page 55442]]

renewed annually. These required certifications verify that the meat

and other animal products being imported into the United States from

Uruguay meet the conditions of our regulations.

The purpose of the requirements that all meat must be completely

deboned and of the proper pH prior to export is to eliminate rinderpest

and FMD disease organisms from the meat. These requirements do not

apply to Uruguay, because the country has been declared free of

rinderpest and FMD.

APHIS has an emergency programs staff which has developed

procedures for decontamination, control, and eradication of FMD should

an outbreak occur in the United States.

Therefore, based on the rationale set forth in the proposed rule

and in this document, we are adopting the provisions of the proposal as

a final rule.

Effective Date

This is a substantive rule that relieves restrictions and, pursuant

to the provisions of 5 U.S.C. 553, may be made effective less than 30

days after publication in the Federal Register. This rule removes the

prohibition on the importation, from Uruguay, of ruminants and fresh,

chilled, and frozen meat of ruminants into the United States from

Uruguay and relieves restrictions on the importation, from Uruguay, of

milk and milk products of ruminants. We have determined that

approximately 2 weeks are needed to ensure that Animal and Plant Health

Inspection Service personnel at ports of entry receive official notice

of this change in the regulations. Therefore, the Administrator of the

Animal and Plant Health Inspection Service has determined that this

rule should be made effective 15 days after publication in the Federal

Register.

Executive Order 12866 and Regulatory Flexibility Act

This rule has been reviewed under Executive Order 12866. For this

action, the Office of Management and Budget has waived its review

process required by Executive Order 12866.

This final rule amends the regulations in part 94 by adding Uruguay

to the list of countries declared free of rinderpest and FMD. This

action will remove the prohibition on the importation into the United

States, from Uruguay, of ruminants and fresh, chilled, and frozen meat

of ruminants, although these imports will be subject to certain

restrictions. This rule will also relieve restrictions on the

importation, from Uruguay, of milk and milk products of ruminants. This

action will not relieve restrictions on the importation of live swine

and fresh, chilled, and frozen meat of swine from Uruguay, because

Uruguay has not been declared free of hog cholera.

The primary effects of this change in the regulations will be

limited to bovine meat and prepared products. Swine and swine products

are excluded because of restrictions due to hog cholera, and the United

States has not imported any mutton, lamb, or goat meat from Uruguay in

the last 2 years. This situation is not expected to change as a result

of the rule.

This rule is expected to affect United States imports of various

animal products from Uruguay, including embryos, semen, breeding

animals, and other products.

The increase in beef imports resulting from the rule change is

expected to have a minimal negative impact on producers, while

benefitting consumers.

Uruguayan beef production is made up mostly of grass-fed product.

Grass-fed animals take longer to reach slaughter weights and are

lighter at slaughter than grain-fed cattle. As a result, although

Uruguayan cattle inventories (10.4 million at the end of 1994) are

about 10 percent of United States cattle inventories (103.3 million on

January 1, 1995), Uruguayan beef production runs at only 2 to 4 percent

of United States production. Uruguay currently exports one third of its

beef production. However, Uruguay is not expected to exceed the 20,000

metric ton (MT) tariff-free quota limit for exports of beef into the

United States established under the General Agreement on Tariffs and

Trade (GATT).

Twenty-two percent of United States beef consumption goes into

``non table-cut'' applications, such as fast-food hamburgers and other

prepared meats; 78 percent of United States beef consumption goes into

consumer applications, such as steak and filet mignon, that require

beef produced from grain-fed cattle. (Beef produced in the United

States comes predominantly from grain-fed cattle and is used for

higher-quality table-cuts.) Most of the beef exported from Uruguay is

produced from grass-fed cattle and is suitable for lower-quality, non

table-cut applications. However, select cuts of beef from grass-fed

cattle may be of the same quality as cuts from grain-fed cattle. For

the most part, beef exports from Uruguay will affect the market for non

table-cut beef in the United States.

Beef and dairy farms and feedlot operators will experience the

greatest impact as a result of the rule. According to Small Business

Administration (SBA) criteria, beef and dairy farms with annual sales

of less than $0.5 million are considered small. In 1992, 801,940

operations with beef cows were considered small. These small farms

averaged sales of $20,976 in 1992, as opposed to average sales of $1.3

million on large farms.

Recent USDA data indicated that 152,500 dairy farms were considered

small. In addition to the sale of dairy products, the sale of culled

dairy cattle and young stock not retained for milking or breeding

contributed to dairy farm income. In the worst case scenario, the rule

change could produce a drop in net farm income of $15 on small beef

farms and $83 on small dairy farms when imports were assumed to consist

of beef from grass-fed cattle.

With regards to the sale of dairy products, the Department does not

anticipate a major increase in exports of milk and milk products from

Uruguay into the United States as a result of this rule change. Only

about 10 percent of Uruguay's cow herd is made up of dairy cows, and it

is expected that the increase in beef cattle returns will not

significantly alter this situation. In addition, all dairy products

imported into the United States are restricted by quotas except for

casein, caseinate, and other casein derivatives (hereafter referred to

as casein), which are dry milk products. The United States does not

produce casein, but does import more than half of the casein produced

in the world. Uruguay has not exported casein to the United States in

recent years. Declaring Uruguay free of FMD is expected to have a

minimal effect on the amount of casein imported into the United States.

According to the SBA, feedlots with sales of less than $1.5 million

are considered small. Recent USDA data indicate that 30 percent of

feedlots in the United States are considered small. In the worst case

scenario, the rule change could produce a loss of $30 per year in gross

sales for a small feedlot.

The impact of the rule on cattle dealers/haulers and cattle

slaughterers/primary processors will be minimal because the reduction

in the number of cattle marketed and the number of truck hauls required

to move them will be very small in relation to the current numbers.

Under these circumstances, the Administrator of the Animal and

Plant Health Inspection Service has determined that this action will

not have a significant economic impact on a substantial number of small

entities.

[[Page 55443]]

Executive Order 12778

This rule has been reviewed under Executive Order 12778, Civil

Justice Reform. This rule: (1) Preempts all State and local laws and

regulations that are inconsistent with this rule; (2) has no

retroactive effect; and (3) does not require administrative proceedings

before parties may file suit in court challenging this rule.

Paperwork Reduction Act

This rule contains no information collection or recordkeeping

requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501

et seq.).

List of Subjects in 9 CFR Part 94

Animal diseases, Imports, Livestock, Meat and meat products, Milk,

Poultry and poultry products, Reporting and recordkeeping requirements.

Accordingly, 9 CFR part 94 is amended as follows:

PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL

PLAGUE), VELOGENIC VISCEROTROPIC NEWCASTLE DISEASE, AFRICAN SWINE

FEVER, HOG CHOLERA, AND BOVINE SPONGIFORM ENCEPHALOPATHY:

PROHIBITED AND RESTRICTED IMPORTATIONS

1. The authority citation for part 94 continues to read as follows:

Authority: 7 U.S.C. 147a, 150ee, 161, 162, and 450; 19 U.S.C.

1306; 21 U.S.C. 111, 114a, 134a, 134b, 134c, 134f, 136, and 136a; 31

U.S.C. 9701; 42 U.S.C. 4331, 4332; 7 CFR 2.17, 2.51, and 371.2(d).

Sec. 94.1 [Amended]

2. In Sec. 94.1, paragraph (a)(2) is amended by removing ``and

Trust Territory of the Pacific Islands'' and adding ``Trust Territory

of the Pacific Islands, and Uruguay'' in its place.

Sec. 94.11 [Amended]

5. In Sec. 94.11, paragraph (a), the first sentence is amended by

removing ``and Switzerland'' and adding ``Switzerland, and Uruguay'' in

its place.

Done in Washington, DC, this 26th day of October 1995.

Lonnie J. King,

Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 95-27009 Filed 10-31-95; 8:45 am]

BILLING CODE 3410-34-P