Dairy Tariff-Rate Import Quota Licensing

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 proclaimed in

the Harmonized Tariff Schedule of the United States (HTS), resulting

from entry into force of the Uruguay Round Agreement on January 1,

1995. Most of these products were subject to quotas proclaimed under

section 22 of the Agricultural Adjustment Act of 1933, as amended

(Section 22).

DATES: This interim rule will be effective on January 1, 1995. Comments

should be submitted on or before February 21, 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, SW., Washington, DC 20250-1000. 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, SW., Washington, DC 20250, or telephone (202) 720-

2916.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This 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 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 Final 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 the rule immediately,

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, DC 20503. Attention: Desk Officer for

USDA.

Executive Order 12778

This interim rule has been reviewed under Executive Order 12778.

The provisions of this 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 rule would not have retroactive effect.

Background

An Advance Notice of Proposed Rulemaking (the ANPR) was published

in the Federal Register on June 2, 1994, seeking suggestions and

comments on methods for allocating imported dairy products subject to

the in-quota tariff rates to be proclaimed in the HTS as a result of

the entry into force of the Uruguay Round Agreement. The ANPR also

sought suggestions on various other changes intended to update and make

more enforceable the provisions of Import Regulation 1, Revision 7,

codified at 7 CFR Secs. 6.20-6.24 (the Import Regulation). Because of

time constraints this rule will deal only with modifications of the

existing rule necessary to implement the U.S. Uruguay Round commitments

and will become effective January 1, 1995. A proposed rule making

further changes as envisaged in the ANPR will be published in the

future.

This interim rule issues the Import Regulation under the authority

of section 111 of the Uruguay Round Agreements Act and Chapter 4 and

General Note 15 of the Harmonized Tariff Schedule of the United States

(HTS), and amends that regulation to establish the import licensing

system for the quantities of cheese and certain other dairy products

subject to in-quota tariff rates in the HTS. These quantities include

both the quantities which have been subject to an absolute quota under

Section 22 as well as the additional quantities of cheese articles and

certain non-cheese articles negotiated under the Uruguay Round of

multilateral trade negotiations. Certain Uruguay Round country tariff-

rate quotas or increments do not appear in Appendix 3 of this

regulation as they will only take effect when those countries implement

their respective schedules of concessions. The interim rule also

establishes new eligibility requirements and allocation methods for the

new quantities of non-cheese items. In addition, it deletes obsolete

provisions and updates all the references in the regulation to the HTS

[[Page 1990]] to conform to the tariff schedule which becomes effective

on January 1, 1995.

Throughout the regulation, the term ``annual quota'' is replaced by

``annual tariff-rate quota,'' and references to the TSUS are now to the

Harmonized Tariff Schedule of the United States, the Harmonized Tariff

Schedule, or the HTS.

The definitions in section 6.21 are amended to: (1) replace the

term ``annual quota'' with ``annual tariff-rate quota,'' (2) add a

definition of ``Appendix 3'' which sets forth the increments in the

tariff-rate quota quantities for 1995 for certain cheese and non-cheese

articles and the total 1995 tariff-rate quota for butter substitutes to

be administered under this regulation, (3) define the term ``Harmonized

Tariff Schedule of the United States,'' (4) change the reference to the

Licensing Authority, which has moved within the Foreign Agricultural

Service agency structure, (5) add the term ``any country'' which will

apply to in-quota amounts for which there is no country allocation and

to country of origin adjustments provided for in section 6.30, and (6)

change all references to the TSUS to read the HTS.

Section 6.23, which establishes exceptions to the requirement for a

license to enter certain products, is amended to conform with the

exceptions in General Note 15 of the Harmonized Tariff Schedule of the

United States.

The eligibility provisions in section 6.25 are changed to: (1)

eliminate all one-time provisions establishing eligibility for new

historical and non-historical licenses which resulted from the Tokyo

Round Agreement, (2) provide that the eligibility requirements for

supplementary licenses be applied to Appendix 3 cheese articles and

provide eligibility criteria for non-cheese dairy article Appendix 3

supplementary import licenses, and (3) provide for an application

period for licenses to import all 1995 Uruguay Round increments in

cheese and certain non-cheese dairy articles. The eligibility

requirements for the non-cheese articles are significantly more

stringent than the existing cheese requirements. This is to ensure that

licenses are awarded to import/distribution or manufacturing

operations. There is, however, an alternative eligibility requirement

for non-cheese items which requires a greater number of shipments

spread throughout the year than the standard criteria. The alternative

is intended to allow small companies or those seeking less than a

container-load to qualify for license.

Section 6.26 is amended to: (1) eliminate all one-time provisions

establishing the allocation of new historical licenses which resulted

from the Tokyo Round Agreement, (2) update the table of minimum non-

historical license sizes to show the HTS number and quantity in

kilograms, and (3) apply the allocation methods for supplementary

licenses to Appendix 3 cheese articles and establish allocation methods

for Appendix 3 non-cheese articles. The minimum and maximum

supplementary license sizes for non-cheese articles are being set at

higher levels than those which currently apply to cheese articles to

reflect current shipping practices. The allocation method for the new

amounts of non-cheese articles will be a rank-order lottery, in which

applicants are requested to number each license request in a rank

order. Once a license is awarded from among the non-cheese articles to

an applicant, no other non-cheese license will be awarded to that

applicant until all the other applicants have received at least one

non-cheese license for which they applied, provided that the licenses

for which they applied are not already fully allocated.

Section 6.27 is amended to delete the references to Customs Form

7505 which is no longer in use. Sections 6.28, 6.29, and 6.30 are

amended solely to bring them up-to-date and into conformance with the

HTS effective as of January 1, 1995, and to provide coverage for

Appendix 3 articles where appropriate. Section 6.34 is deleted as it is

unnecessary in the body of the rule.

List of Subjects in 7 CFR Part 6

Agricultural commodities, Cheese, Dairy products, Imports, and

Reporting and record keeping requirements.

Interim Rule

Accordingly, 7 CFR Part 6, Subpart--Section 22 Import Quotas,

Secs. 6.20-6.34, and Appendix 1 and Appendix 2 thereto, are amended as

follows:

1. The heading for Secs. 6.20-6.34 is revised to read as follows:

``Subpart--Tariff-Rate Quotas''.

2. The authority citation for sections 6.20-6.34 and the appendices

thereto is revised to read as follows:

Authority: Additional U.S. Notes 6, 7, 12, 14, and 16-25 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

(31 U.S.C. 9701), and sec. 111, Pub. L. 103-465, 108 Stat. 4819.

3. Section 6.20 is revised to read as follows:

Sec. 6.20 Determination.

Additional U.S. Notes 6, 7, 12, 14, and 16 through 25 to Chapter 4

of the Harmonized Tariff Schedule of the United States provide that

imports of the articles enumerated in those notes require import

licenses issued by the U.S. Department of Agriculture. Additional U.S.

Notes 16 through 25 also provide that unfilled allocations may be

reallocated in accordance with regulations issued by the U.S.

Department of Agriculture. General Note 15 provides for certain

exceptions that require the approval of the Secretary of Agriculture.

These regulations shall apply to all articles subject to tariff-rate

quotas, and the exceptions thereto, in accordance with these notes.

4. Section 6.21 is revised to read as follows:

Sec. 6.21 Definitions.

Affiliate means any person or legal entity which owns or is owned

by, in total or in part, directly or indirectly, or controls or is

controlled by another person, persons or legal entity. For a

corporation, ownership interest will be the controlling criterion. If 5

percent or more equity interest in the aggregate is owned or controlled

in a corporation, partnership, estate, or trust by or for a person, a

corporation, a partnership, or a beneficiary of an estate or a trust,

the interest will be considered as owned or controlled by the person,

partnership, corporation, estate or trust. Ownership interest in any

person or legal entity may be attributed to another person or entity in

accordance with Sec. 6.25(b)(3), thereby causing the person or entity

to whom the ownership interest has been attributed to be defined as an

``affiliate'' even though such persons or legal entities have no direct

relation with each other.

Annual tariff-rate quota means the quantity of an article which may

be entered in a quota year as provided for in Appendix 1, Appendix 2

and Appendix 3 at the in-quota tariff rate.

Any country means those countries or territories listed in Annex A,

Schedule C of the Harmonized Tariff Schedule.

Appendix 1 means Appendix 1 to this subpart. Definitions of

articles in this appendix are the same as those provided for in the

Additional U.S. Notes to Chapter 4 of the Harmonized Tariff Schedule.

Appendix 2 means Appendix 2 to this subpart. Definitions of

articles in this appendix are the same as those provided for in the

Additional U.S. Notes to Chapter 4 of the Harmonized Tariff Schedule.

Appendix 3 means Appendix 3 to this subpart. Definitions of

articles in this [[Page 1991]] appendix are the same as those provided

for in the Additional U.S. Notes to Chapter 4 of the Harmonized Tariff

Schedule.

Article means any Harmonized Tariff Schedule article referred to in

Appendix 1, Appendix 2, or Appendix 3 of this supart.

Associate means a party connected with one or more parties,

formally or informally, directly or indirectly, with the common purpose

of obtaining eligibility for additional licenses, one party intending

to use, (and benefit economically from such use) directly or indirectly

the licenses that the other may acquire. Two or more associates of a

third party shall not be deemed to be associates of one another due to

such third-party association only.

Authorized agent means an agent as used in 19 CFR 141.31(a) for

whom the licensee has filed with the District Director of Customs a

limited power of attorney using Customs Form 5291 authorizing such

agent to act for, but only in, the licensee's name.

Basic annual allocation refers to historical quota shares only and

means the quota share of a licensee for an article before any reduction

as authorized under Sec. 6.26(d) has been effected. It will be

calculated on the basis of the annual average amount entered by a

licensee during a predetermined representative base period.

Cheese or cheese products means those cheeses and cheese products

for which standards of identity have been promulgated by the Food and

Drug Administration and/or which are encompassed within 21 CFR part

133.

Country of origin and/or Supplying country mean the country in

which the article subject to the regulation was produced or

manufactured as defined under 19 CFR 134.1(b).

Date of entry is the date when the specified Customs entry form is

properly executed and deposited, together with estimated duties and any

related documents required by law or regulation to be filed with such

form at the time of entry, with the appropriate Customs Officer.

Department means the United States Department of Agriculture.

EC means the twelve European Community countries, viz., Belgium,

Denmark, the Federal Republic of Germany, France, Greece, Ireland,

Italy, Luxembourg, the Netherlands, Portugal, Spain and the United

Kingdom, which for the purposes of this regulation shall be deemed as

one country of origin.

Eligible applicant means a person applying for a license to enter

an article who has established, to the satisfaction of the Licensing

Authority, eligibility to enter such article, in accordance with

Sec. 6.25.

Enter means to make entry, or withdrawal from warehouse, for

consumption by deposit with, and acceptance by, the appropriate Customs

officer of the properly executed entry documents, including invoices,

bills of lading and payment of estimated duties.

Entire dairy products business means the total assets and

operations of the foreign and domestic aspects of a business pertaining

to articles subject to the provisions of this regulation.

Entrepreneurial use means the processing or sale of the article

entered pursuant to the license as a part of the ordinary conduct of

business by a licensee who is managing and assuming the risk of such

business. Such term does not include one who is functioning as a mere

supplier of license.

Harmonized Tariff Schedule means the Harmonized Tariff Schedule of

the United States.

Licensee means any person to whom a license has been issued under

the regulation.

Licensing Authority means the Dairy Import Quota Manager, Import

Policies and Programs Division, Foreign Agricultural Service, U.S.

Department of Agriculture, or any other officer or employee of the

Department acting in his or her behalf.

Other countries refers to countries sharing a common tariff-rate

quota which are not listed as having separate tariff-rate quota

allocations in the Additional U.S. Notes to Chapter 4 of the Harmonized

Tariff Schedule and for the purposes of the regulation are deemed as

one country of origin.

Person includes any individual, firm, corporation, partnership,

association, or other legal entity. It also includes any national

government (other than the Government of the United States and any

agency thereof).

Postmark means the postage cancellation mark applied by the U.S.

Post Office showing the post office and date of mailing. This does not

include metered postage affixed by the applicant or any other private

entity.

Quota means the articles and quantities of such articles subject to

an in-quota rate of duty provided for in the Additional U.S. Notes to

Chapter 4 of the Harmonized Tariff Schedule and covered by this

regulation.

Quota share means that part of the annual tariff-rate quota of an

article listed in Appendix 1, Appendix 2, or Appendix 3 of this subpart

for which a person is eligible.

Quota year means the 12-month period beginning on January 1 of any

given year.

Regulation means the provisions contained in the Licensing

Regulation of this subpart.

United States means the Customs Territory of the United States,

which is limited to the United States, the District of Columbia and

Puerto Rico.

5. Section 6.22 is amended by revising paragraph (a) to read as

follows:

Sec. 6.22 Prohibitions and restrictions on importers.

(a) No person may enter or cause to be entered any article listed

in Appendix 1, Appendix 2, or Appendix 3, except as provided in

Sec. 6.23 or as authorized by a license issued pursuant to this

regulation.

* * * * *

6. Section 6.23 is revised to read as follows:

Sec. 6.23 Exceptions.

Licenses are not required for the entry of:

(a) Products imported by or for the account of any agency of the

U.S. Government.

(b) Products imported for the personal use of the importer,

provided that the net quantity of such product in any one shipment does

not exceed five kilograms.

(c) Products, which will not enter the commerce of the United

States, imported as samples for taking orders, for exhibition, display

or sampling at a trade fair, for research, for use by embassies of

foreign governments or for testing of equipment, provided that written

approval of the Licensing Authority is obtained.

7. Section 6.24 is revised to read as follows:

Sec. 6.24 Application for license.

Applications of the Licensing Authority for the issuance of

licenses to enter articles must be made in writing, addressed to the

Import Licensing Group, Room 5531-S, Import Policies and Programs

Division, Foreign Agricultural Service, U.S. Department of Agriculture,

Washington, D.C. 20250-1000. Each application must indicate the

Additional U.S. Note number of the Harmonized Tariff Schedule and the

country of origin of the article. Unpostmarked applications will not be

approved by the Licensing Authority.

8. Section 6.25 is amended by revising paragraph (a), the

introductory text of paragraph (c)(1), paragraphs (c)(1)(ii),

(c)(1)(iii), (c)(2) and (c)(3) to read as follow: [[Page 1992]]

Sec. 6.25 Eligibility.

(a) Historical eligibility. Historical eligibility for licenses to

enter in-quota shares of articles subject to tariff-rate quotas which

are shown in Appendix 1 and Appendix 2 of this subpart, has already

been established.

* * * * *

(c)(1) Supplementary license eligibility for specific articles of

cheese listed in Appendix 2 and Appendix 3 of this subpart will be

established:

(i) * * *

(ii) By application by a person having historical eligibility for a

particular article shown in Appendix 2 of this subpart from the country

of origin for which such person is seeking supplementary license; or

(iii) By being endorsed in writing by the government of the

supplying country as a preferred importer, with such endorsement being

sent directly from the government of the supplying country through

appropriate channels to the Licensing Authority, and for articles in

Appendix 2 of this subpart by meeting one or both of qualifications in

paragraphs (c)(1)(i) and (ii) of this section. For articles in Appendix

3 of this subpart such qualifications must be met beginning with the

1996 quota year. Endorsement by the government of a supplying country

of a person who is known to the Licensing Authority to have at any time

violated any provision of this or any other regulation or law of the

United States applicable to international commerce will not be

recognized by the Licensing Authority.

(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.

Importers who may have already submitted supplementary license

certification for cheese during the application period which ended

November 1, 1994 may request license for cheese articles under Appendix

3 of this subpart by submitting an application, provided by the

Licensing Authority upon request, without further documentation,

postmarked as required in this paragraph.

(3) Supplementary eligibility for specific non-cheese articles

listed in Appendix 3 of this subpart will be established by:

(i) Submission of documentary evidence acceptable to the Licensing

Authority as required under paragraphs (b)(2)(i) and (ii) of this

section, and

(ii) Providing documentary evidence that the applicant has made at

least two separate commercial entries or exports of any dairy product

totaling not less than 38,000 kilograms during the 1994 calendar year;

or at least eight separate commercial entries or exports totaling not

less than 18,000 kilograms, each entry or export being a minimum of

2,200 kilograms, with a minimum of two transactions taking place in

each of at least three quarters of the 1994 calendar year. U.S. Customs

Service Consumption entry documents (Entry Summary Form 7501) and proof

of payment in the applicant's name for the entered product and the duty

must be provided showing that such person has made the above commercial

entries or in the case of a person seeking eligibility on the basis of

exports, U.S. Department of Commerce, Bureau of the Census Form 7525-V

and the invoice or other proof that the applicant has made the exports

of dairy products must be provided; or

(iii)(A) Being listed in the Dairy Plants Surveyed and Approved for

USDA Grading Service, and

(B) certifying that the product will be used directly in the

plant's own manufacturing or sales/distribution program.

* * * * *

9. Section 6.26 is amended by removing paragraphs (a)(3) through

(a)(6) and revising the table in paragraph (b)(1) to read as follows:

Sec. 6.26 Allocation of annual quota and issuance of licenses.

* * * * *

(b) * * *

(1) * * *

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

HTS Minimum

Article note quantity

No. (kilograms)

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

Dried buttermilk and whey......................... 12 1,133

Dried skimmed milk................................ 7 2,267

Dried whole milk.................................. 8 453

Butter............................................ 6 453

Blue-mold cheese.................................. 17 2,267

Cheddar cheese.................................... 18 4,535

American-type cheese.............................. 19 4,535

Edam and Gouda cheese............................. 20 3,175

Italian-type cow's milk cheese.................... 21 2,267

Swiss or Emmenthaler cheese with eye formation.... 25 4,535

Swiss or Emmenthaler cheese other than eye-

formation Gruyere Process........................ 22 4,535

Other cheese NSPF................................. 16 18,143

Other cheese low fat.............................. 23 4,535

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

* * * * *

Sec. 6.26 [Amended]

10. Section 6.26 is further amended by removing paragraph (b)(5)

and revising the introductory text of paragraph (c) and the

introductory text of paragraph (c)(3) to read as follows:

(c) Supplementary licenses (pertaining to articles in Appendix 2

and Appendix 3 of this subpart) for cheese articles:

* * * * *

(c)(3) A supplementary quota share for a cheese article in Appendix

2 or Appendix 3 of this subpart from a particular country of origin

other than those provided for in paragraph (c)(2) of this section will

be determined on the following basis:

* * * * *

11. Section 6.26 is further amended by removing paragraph (f) and

by redesignating paragraphs (d) and (e) as paragraphs (e) and (f). A

new paragraph (d) is added to read as follows:

Sec. 6.26 Allocation of annual quota and issuance of licenses.

* * * * *

(d) Supplementary licenses (pertaining to articles in Appendix 3 of

this subpart) for non-cheese articles:

(1) A person with its affiliate(s) or associate(s) will be

considered only as one person for the purpose of allocation of such

supplementary quota shares. However, a person with an Appendix 1

historical license for such article initially issued for a quota year

prior to 1995 is not precluded from applying for such supplementary

quota shares.

(2) The size of a supplementary quota share issued to an eligible

applicant shall not exceed 57,000 kilograms.

(3) If, after applications for supplementary licenses have been

evaluated and tabulated, the Licensing Authority determines that

eligible applicants for shares of a particular non-cheese tariff-rate

quota in Appendix 3 of this subpart have appropriately requested

amounts which together exceed the amount available for allocation, the

Licensing Authority shall first assign quota shares of not less than

the minimum share as indicated below to each applicant and then prorate

the remaining portion available for allocation among them. The minimum

share shall be as follows:

(i) 19,000 kilograms where the total amount available for

allocation is less than 550,000 kilograms;

(ii) 38,000 kilograms where the total amount available for

allocation is greater than 550,001 kilograms.

(4) If applying for more than one supplementary license for non-

cheese articles covered by this regulation, the [[Page 1993]] applicant

must rank order these requests by the applicable U.S. Additional Note

number for the article being requested. If, after applications for

supplementary licenses have been evaluated and tabulated according to

the rank order submitted, the Licensing Authority determines that the

number of eligible applicants for a minimum tariff-rate quota share for

a particular article from a particular country in Appendix 3 of this

subpart exceeds the number of available minimum tariff-rate quota

shares for that article, the Licensing Authority will then allocate the

licenses by random selection. However, once a license is awarded from

among the non-cheese articles to an applicant, no other non-cheese

license will be awarded to that applicant until all the other

applicants have at least received one such license for which they

applied, provided that the licenses for which they applied are not

already fully allocated. A single tariff-rate quota share for a

particular article of less than the minimum may be issued, if

appropriate, to facilitate full allocation of a particular tariff-rate

quota.

Sec. 6.27 [Amended]

12. Section 6.27 is amended in paragraph (f) by removing ``7505''

and adding ``7501''; and in paragraph (h) by removing the words ``entry

Form 7501 or Customs warehouse withdrawal Form 7505'' and adding in

their place ``Form 7501'' and removing the words ``or 7505''.

13. Section 6.28 is amended by revising the first sentence to read

as follows:

Sec. 6.28 Records and inspection.

Any person making an entry, except as provided in Sec. 6.23, of an

article listed in Appendix 1, Appendix 2, or Appendix 3 of this subpart

is required to retain all records, including invoices of all purchases,

entries, withdrawals, sales and deliveries of such articles for a

period of not less than two years subsequent to the end of the quota

year during which entry was made.

Sec. 6.29 [Amended]

14. Section 6.29 is amended by removing all references in paragraph

(b)(3) to the ``Dairy, Livestock and Poultry Division'' and adding

``Import Policies and Programs Division'' in its place.

Sec. 6.30 [Amended]

15. Section 6.30 is amended in paragraph (a) by removing paragraphs

(a) (1) and (2) and the colon at the end of the introductory text and

by adding the following text:

Sec. 6.30 Adjustment of countries of origin.

(a) * * * any country of origin (global) except where Uruguay Round

commitments require the consent of the supplying country. In such case,

consent will be sought and action taken only if it is granted for

portions of the tariff-rate quota subject to this requirement.

Sec. 6.34 [Removed]

16. Section 6.34 is removed.

17. Appendix 1 and Appendix 2 of the subpart following Sec. 6.34

are revised and a new Appendix 3 is added as follows:

Appendix 1--Articles Subject to the Historical and Nonhistorical

Licensing Provisions of the Import Regulation 1, Revision 7, and

Respective Annual Tariff-Rate Quotas for Each Quota Year

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

Annual

historical/

Article by HTS Note No. nonhistorical

quota

(kilograms)

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

Group I:

(a) Butter (Note 6)............................... 320,689

EC............................................ 96,161

New Zealand................................... 150,593

Other Countries............................... 73,935

(b) Dried whole milk (Note 8)..................... 3,175

(c) Dried skimmed milk (Note 7)................... 819,641

(d) Dried buttermilk and whey (Note 12)........... 224,981

Group II:

(a) Edam and Gouda cheese (Note 20)............... 5,606,401

EC............................................ 5,248,000

Norway........................................ 167,000

Argentina..................................... 125,000

Sweden........................................ 41,000

Other countries............................... 25,401

(b) Blue-mold cheese (except Stilton made in

England) and cheese and substitutes for cheese

containing or processed from blue-mold cheese

(Note 17)........................................ 2,257,001

EC............................................ 2,255,000

Argentina..................................... 2,000

Other countries............................... 1

Group III:

(a) Cheddar cheese and cheese and substitutes for

cheese containing or processed from Cheddar

cheese (Note 18)................................. 3,667,889

EC............................................ 263,000

Australia..................................... 769,000

New Zealand................................... 2,496,000

Other countries............................... 139,889

(b) 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)................................. 2,708,556

EC............................................ 254,000

Australia..................................... 762,000

New Zealand................................... 1,524,000

Other countries............................... 168,556

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) (Note 21)........... 5,625,064

EC............................................ 1,810,000

[[Page 1994]]

Argentina..................................... 3,802,000

Other countries............................... 13,064

Group V:

(a) Swiss or Emmenthaler cheese with eye formation

(Note 25)........................................ 9,260,276

EC............................................ 1,767,000

Austria....................................... 3,729,000

Finland....................................... 2,772,000

Israel........................................ 27,000

Norway........................................ 758,000

Switzerland................................... 122,000

Other countries............................... 85,276

(b) Swiss or Emmenthaler cheese other than with

eye formation. Gruyere-process cheese, and cheese

and substitutes for cheese containing, or

processed from such cheese (Note 22)............. 5,061,833

EC............................................ 2,603,000

Austria....................................... 638,000

Finland....................................... 728,000

Switzerland................................... 1,013,000

Other countries............................... 79,833

(c) Cheese and substitutes for cheese (except

cheese not containing cow's milk; 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

additional U.S. Notes 17 through 25, inclusive,

to this chapter (Note 16)........................ 18,448,859

EC............................................ 10,724,000

Austria....................................... 90,000

Australia..................................... 56,000

Canada........................................ 1,141,000

Finland....................................... 562,000

Iceland....................................... 294,000

Israel........................................ 66,000

New Zealand................................... 3,427,000

Norway........................................ 150,000

Poland........................................ 936,224

Sweden........................................ 774,000

Switzerland................................... 98,000

Other countries............................... 130,635

(d) Cheese and substitutes for cheese, containing

0.5 percent or less by weight of butterfat

(except articles within the scope of other tariff-

rate quotas provided for in additional U.S. Notes

16 through 22, inclusive, or additional U.S.

Notes 24 and 25 to this chapter) and margarine

cheese (Note 23)................................. 3,951,908

EC............................................ 3,777,000

Poland........................................ 174,907

Other countries............................... 1

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

Appendix 2--Articles Subject to the Historical and Supplementary

Licensing Provisions of Import Regulation 1, Revision 7, and Respective

Annual Tariff-Rate Quotas for Each Quota Year

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

Annual

historical/

Article by HTS Note No. supplementary

quota

(kilograms)

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

Group II:

(c) Blue-mold cheese (except stilton made in

England), and cheese and substitutes for cheese

containing, or processed from Blue-mold cheese

(Note 17)........................................ 224,000

EC............................................ 224,000

Group III:

(a) Cheddar cheese, and cheese and substitutes for

cheese containing, or processed from Cheddar

cheese (Note 18)................................. 1,035,000

New Zealand................................... 604,000

Australia..................................... 431,000

(b) 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)................................. 714,000

New Zealand................................... 476,000

Australia..................................... 238,000

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) (Note 21)................ 2,691,000

Argentina..................................... 691,000

EC............................................ 1,572,000

Uruguay....................................... 428,000

Group V:

(a) Swiss or Emmenthaler cheese with eye formation

(Note 25)........................................ 22,595,000

[[Page 1995]]

EC............................................ 4,233,000

Argentina..................................... 80,000

Austria....................................... 2,551,000

Australia..................................... 500,000

Canada........................................ 70,000

Finland....................................... 5,428,000

Iceland....................................... 300,000

Norway........................................ 6,125,000

Switzerland................................... 3,308,000

(b) Swiss or Emmenthaler cheese other than with

eye formation. Gruyere-process cheese; and cheese

and substitutes for cheese containing, or

processed from such cheese (Note 22)............. 2,413,000

EC............................................ 1,022,000

Austria....................................... 282,000

Finland....................................... 272,000

Switzerland................................... 837,000

(c) Cheese and substitutes for cheese (except

cheese not containing cow's milk; 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 import quotas provided for in additional

U.S. Notes 17 through 25, inclusive, to this

chapter) (Note 16)............................... 22,383,000

EC............................................ 9,732,000

(of which 353,000 are reserved for

Portugal)

Argentina..................................... 100,000

Australia..................................... 1,244,000

Austria....................................... 560,000

Finland....................................... 738,000

Iceland....................................... 29,000

Israel........................................ 607,000

New Zealand................................... 7,895,000

Sweden........................................ 285,000

Switzerland................................... 1,122,000

Other Countries............................... 71,000

(d) Cheese and substitutes for cheese, containing

0.5 percent or less by weight of butterfat

(except articles within the scope of other import

quotas provided for in additional U.S. Notes 16

through 22, inclusive, or additional U.S. Notes

24 and 25 to this chapter) and margarine cheese

(Note 23)........................................ 1,523,000

EC............................................ 223,000

Israel........................................ 50,000

New Zealand................................... 1,000,000

Sweden........................................ 250,000

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

Appendix 3--Certain Articles Subject to the Supplementary Licensing

Provisions of Import Regulation 1, Revision 7, and Respective Annual

Tariff-Rate Import Quotas for 1995

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

Annual

Supplementary

Article by HTS Annual Note No. 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; 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

additional U.S. Notes 17 through 25, inclusive,

to this chapter) (Note 16)....................... 2,441,666

Australia..................................... 291,666

Costa Rica.................................... 1,000,000

Czech Republic................................ 200,000

Slovak Republic............................... 600,000

Uruguay....................................... 250,000

Any Country................................... 100,000

Blue-mold cheese (except Stilton made in England)

and cheese and substitutes for cheese containing

or processed from blue-mold cheese (Note 17)..... 63,333

Chile......................................... 13,333

Czech Republic................................ 50,000

Cheddar cheese and cheese and substitutes for

cheese containing or processed from Cheddar

cheese (Note 18)................................. 1,245,000

Australia..................................... 208,333

Chile......................................... 36,667

Czech Republic................................ 50,000

New Zealand................................... 850,000

Any Country................................... 100,000

[[Page 1996]]

Edam and Gouda cheese, and cheese and substitutes

for cheese, containing, or processed from, Edam

and Gouda Cheese (Note 20)....................... 210,000

Argentina..................................... 110,000

Czech Republic................................ 100,000

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 cheese and substitutes for

cheese containing, or processed from, such

Italian-type cheese, whether or not in original

loaves (Note 21)................................. 3,123,333

Argentina..................................... 1,890,000

Uruguay....................................... 750,000

Hungary....................................... 400,000

Romania....................................... 83,333

Swiss-Emmenthaler cheese with eye formation (Note

25).............................................. 800,000

Czech Republic................................ 400,000

Hungary....................................... 400,000

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

Signed at Washington, D.C., on December 27, 1994.

Mike Espy,

Secretary of Agriculture.

[FR Doc. 95-298 Filed 1-3-95; 3:51 pm]

BILLING CODE 3410-10-P