Import/Export User Fees

SUMMARY: We are amending user fees for certain import- and export-

related services we provide for live animals and birds, animal

products, organisms and vectors, and germ plasm and veterinary

diagnostic services. We are also establishing user fees for certain

import- and export-related services we provide for live animals and

birds, and animal products and byproducts. We are also making several

miscellaneous changes, such as amending the definitions of certain

words. These actions are necessary to help ensure that we recover our

costs and to simplify and clarify the application of user fees for the

public. These actions are taken in accordance with the Food,

Agriculture, Conservation, and Trade Act of 1990, as amended, which

gives us the authority to set and collect these user fees.

EFFECTIVE DATE: June 6, 1996.

FOR FURTHER INFORMATION CONTACT: For information concerning services

provided for live animals and birds, and germ plasm, contact Dr. Gary

S. Colgrove, Chief Staff Veterinarian, National Center for Import and

Export, VS, APHIS, 4700 River Road Unit 38, Riverdale, MD 20737-1231;

(301) 734-3294.

For information concerning services provided for animal products

and byproducts, organisms and vectors, contact Dr. Kathleen Akin,

Senior Staff Veterinarian, Import/Export Products, VS, APHIS, 4700

River Road Unit 40, Riverdale, MD 20737-1231; (301) 734-7830.

For information concerning services provided for veterinary

diagnostics, contact Dr. James E. Pearson, Acting Director, National

Veterinary Services Laboratories, P.O. Box 844, Ames, IA 50010; (515)

239-8266.

For information concerning fees, contact Ms. Barbara Thompson,

Chief, Financial Systems and Services Branch, Budget and Accounting

Division, APHIS, 4700 River Road Unit 54, Riverdale, MD 20737-1232;

(301) 734-5901.

SUPPLEMENTARY INFORMATION:

Background

The Food, Agriculture, Conservation and Trade Act of 1990, as

amended (referred to below as the Farm Bill), authorizes the Secretary

of Agriculture, among other things, to prescribe and collect fees to

reimburse the Secretary for the cost of carrying out the provisions of

the Federal animal quarantine laws that relate to the importation,

entry, and exportation of animals, articles, or means of conveyance

(section 2509(c)(1) of the Farm Bill). The Secretary of Agriculture is

also authorized, under section 2509(c)(2) of the Farm Bill, to

prescribe and collect fees to recover the costs of carrying out certain

veterinary diagnostics services.

The user fee regulations in 9 CFR part 130 (referred to below as

the regulations) prescribe user fees that the Animal and Plant Health

Inspection Service (APHIS) of the U.S. Department of Agriculture (USDA)

collects for various services that APHIS provides. The regulations

currently include user fees for: (1) Providing quarantine, importation,

and entry services within the United States for imported animals; (2)

conducting certain veterinary diagnostics services; (3) endorsing

export health certificates for animals; (4) providing certain

inspection and supervision services within the United States for

animals intended for export; and (5) conducting certain veterinary

inspections outside the United States.

Our user fees are calculated to recover the full cost of providing

the service for which the user fee is charged. The cost of providing a

service includes direct labor costs and a pro rata share of

administrative support, agency overhead, and Departmental charges.

On May 26, 1995, we published in the Federal Register (60 FR 27913-

27924, Docket No. 92-174-1) a proposal to amend the regulations by

revising and adding new hourly, minimum, and flat rate user fees in the

regulations. We proposed to increase most of the hourly, minimum, and

flat rate user fees for import-related services in Secs. 130.2, 130.3,

130.5, 130.6, 130.7, and 130.9 of the regulations and for export-

related services in Secs. 130.9 and 130.21 of the regulations. For

services performed on overtime, we proposed to add new premium hourly

rate user fees, to replace the practice of charging two separate hourly

rates (see Secs. 130.5, 130.9 and 130.21 of the regulations). We

proposed to add a new minimum user fee in Sec. 130.3 of the

regulations. We proposed to add a new Sec. 130.10 for hourly, minimum,

and flat rate user fees for pet birds. We proposed to add new

requirements for special mail handling to be paid for by the user in

Secs. 130.14 through 130.18 of the regulations. We proposed to add a

new fee for nonendorsed export health certificates in Sec. 130.20 of

the regulations. Additionally, we proposed to accept credit cards in

certain locations as an optional payment method. We also proposed to

make several other changes to simplify and clarify the regulations.

We solicited comments concerning our proposal for 60 days ending

July 25, 1995. We received 60 comments by that date. They were from

veterinarians, representatives of agricultural industries, exporters,

producers, a State department of livestock, a Member of Congress, and

other interested parties.

Summary of Changes Made in Response to Comments

We are making the following changes in response to the comments we

received. We are combining the services covered under Sec. 130.4 with

the services covered under Sec. 130.5. Section 130.4 covers inspection

services at privately operated permanent import-quarantine facilities.

Under Sec. 130.4, a flat rate user fee is charged for each animal

quarantined at the facility. Section 130.5 covers inspection services

at privately operated temporary import-quarantine facilities. Under

Sec. 130.5, an hourly user fee is charged for animals quarantined at

the facility. We are adding quarter-hour

[[Page 20422]]

and minimum user fee rates to premium user fees added in Secs. 130.5,

130.9, and 130.21. We are clarifying Sec. 130.20(a) and

Sec. 130.20(b)(1) to specify that the user fees listed in

Sec. 130.20(b)(1) for endorsing export health certificates which

require tests or vaccinations are charged for endorsements when tests

or vaccinations are required. We are changing ``APHIS veterinarian'' to

``designated APHIS employee'' and changing ``requested'' to ``requested

and reviewed'' in Sec. 130.20(d) of this final rule. In addition, we

are revising the text of footnote 9 to reflect the availability of

lists for APHIS offices that accept cash or credit cards. Footnotes to

text or tables in Secs. 130.7, 130.8, 130.10, 130.14, and 130.15 have

been revised to add clarity. The comments and responses are discussed

below by topic.

General Comments

One commenter opposed the entire proposed rule. All of the other

commenters opposed some portion of the proposed rule. Twelve commenters

included the following positive comments concerning user fees and the

services APHIS provides. Several commenters expressed an understanding

of our need to increase user fees or supported user fees which cover

costs. Several expressed appreciation for the services APHIS provides,

such as APHIS' role in disease control and maintenance of a healthy and

robust livestock industry in the United States, helping export business

in the United States, and negotiating import- and export-related issues

with foreign countries. One commenter supported modest increases in

certain user fees as proposed.

1. Taxes and Budget Deficit

Nine commenters expressed concerns about taxes and the budget

deficit. Some commenters expressed more than one concern; specific

concerns follow.

Two commenters stated that APHIS was assessing taxes of its own

volition. Six commenters stated that the APHIS user fee is a tax, not a

fee.

A tax is money paid to support government operations that benefit

the general public. A user fee is money collected for a specific

service provided to a readily identifiable recipient. The 1990 Farm

Bill authorizes USDA to prescribe and collect user fees to reimburse

the cost of carrying out certain import- and export-related services

for animals, animal products, and veterinary diagnostics. The Farm Bill

further states that ``Any person for whom an activity related to the

importation, entry, or exportation of an animal, article, or means of

conveyance or relating to veterinary diagnostics, is performed pursuant

to the section, shall be liable for payment of fees assessed.''

Generally speaking, no one is required to conduct any business or

endeavor which is regulated by APHIS. However, anyone who does so must

comply with APHIS requirements. In this manner, all users ask for

service from APHIS. The APHIS user fees herein are designed to recover

and fund the cost of providing specific services. As such, the APHIS

user fee is a fee for specific services provided to a certain portion

of the public and, therefore, is not a tax.

Three commenters stated that our services are already paid for by

taxes, and therefore, we should not charge fees for them. One commenter

suggested that we should fund increases in the costs through other

methods.

After the passage of the 1990 Farm Bill, Congress reduced APHIS'

appropriations (i.e., tax revenue) by the estimated costs of providing

these import- and export-related services. Congress authorized APHIS to

recover all costs associated with these services by establishing and

charging user fees. Consequently, any increases in our costs must be

recovered by increasing the user fees we charge. Otherwise, we would

have to reduce or discontinue the service or use funds appropriated for

other purposes, to the detriment of the program from which the funds

were reallocated.

One commenter stated that APHIS user fees should not be used for

general Federal budget deficit reduction. One commenter questioned what

will be done with revenues.

The user fees are not being used for general Federal budget deficit

reduction in the sense that the revenue does not fund or offset general

government operations. The user fees collected pay for the actual user

fee services provided and will allow APHIS to continue providing

import- and export-related and veterinary diagnostic services. The user

fees our Agency collects for these services are deposited into user fee

accounts, and the salaries of veterinarians, animal health technicians,

and other APHIS personnel who perform these services are paid from this

account. An employee who spends a portion of his work time on user fee

activities and a portion on other activities is paid the appropriate

percentage of his salary with user fee revenue. In addition, a pro rata

share of administrative support, agency overhead, and Departmental

charges is paid from this account.

Two commenters questioned user fees as they relate to other APHIS

services. One commenter questioned charging user fees for certain

services when other services are provided at no cost. The commenter

referenced free rabies vaccination clinics on reservations.

The Farm Bill identified specific program areas for the

implementation of user fees, generally related to the importation and

exportation of animals and animal products. APHIS does not have the

authority under the Farm Bill to charge fees for other services, such

as rabies vaccinations, which we provide on reservations to protect

public health.

2. Fee Calculations

We received several comments related to how we calculated our user

fees. One commenter was concerned about the methods used to calculate

the fees and the possibility that the user fees are underwriting other

APHIS services. Several comments questioned whether we should include

certain cost factors, for example, agency overhead charges, in

calculating user fees. Other comments stated that we would recover more

money from our proposed user fees than it costs to provide APHIS

services.

As described in the proposal, the user fees were calculated to

recover the full cost of providing the service for which the fee is

charged. ``Full cost'' includes not only the direct labor of the

veterinarian, animal health technician, or other APHIS personnel

providing the service, but a pro rata share of administrative support,

agency overhead, and Departmental charges. These additional indirect

and overhead costs are included as directed in the Office of Management

and Budget (OMB) Circular A-25, User Charges, and in accordance with

generally accepted cost accounting principles.

Had Congress intended for APHIS to recover only direct labor costs,

the authorizing language would have specified that and Congress would

have continued to give APHIS appropriations to fully fund all indirect

and overhead costs associated with import- and export-related services.

The comments that we may be underwriting other services and that we

will recover more money than it costs to provide the service would only

be true if the Farm Bill authorized us to only recover direct costs.

However, because we are authorized to fully recover all costs, our fees

include all appropriate direct, indirect, and overhead costs.

3. Trade Concerns

Twenty-eight commenters expressed concern about the increases in

user fees and the possible subsequent decrease in exports.

[[Page 20423]]

We realize that payment of the proposed user fees will increase the

up-front cost of doing business for importers and exporters. However,

before this time, users have been subsidized by the taxpayers in

general, in that those who receive services from APHIS have not been

charged the full cost for services. As explained above, appropriations

from taxes are not available to fund these services. To continue

providing import- and export-related and veterinary diagnostic

services, APHIS must charge user fees which will recover the costs of

providing services. We attempt to minimize the cost of our services to

keep APHIS user fees at the lowest possible level. We do not anticipate

that exports will decline significantly as a result of these increases

in user fees.

Many commenters stated that our proposed user fees would make it

difficult or impossible for U.S. products to compete in the

international marketplace. Examples of the issues raised included the

following: U.S. products will be less competitive, the increased user

fees will be a deterrent to international trade, exportation of animals

will become unprofitable, and there will be a decrease in export

activity. Many of these comments mentioned trade related issues with

Canada.

Although some countries do not currently charge for import- and

export-related services, user fees for these services are being adopted

by more and more countries. In fact, as of May 3, 1995, Canada charges

user fees for certain import- and export-related animal health services

(see May 3, 1995, Canada Gazette Part II, Vol. 129, No. 9, SOR/DORS/95-

198). Therefore, we do not believe that U.S. exporters are at a

competitive disadvantage compared with exporters in other countries.

4. Other Countries' Requirements

Two commenters raised the following concerns related to the

requirements other countries impose on U.S. exports. One commenter

questioned why it costs significantly more to export animals to Canada

as opposed to exporting animals to the European Union.

APHIS costs for export-related services depend on the importing

countries' requirements. Canada has significantly different paperwork

requirements than most other countries in the world. Often, more work

is required on the part of APHIS employees to ensure the animals being

exported have met all of Canada's paperwork requirements. In those

instances, the user fees for animals being exported to Canada may be

higher than for animals exported to the rest of the world.

One commenter suggested that APHIS should seek elimination of

import- and export-related testing procedures which are not science- or

risk-based and which may add unnecessary costs to import- and export-

related procedures.

According to the World Trade Organization (WTO), as established by

the Uruguay Round of the General Agreement on Tariffs and Trade, and

the North American Free Trade Agreement (NAFTA), effective January

1995, import- and export-related requirements must be science- and

risk-based. Along with the United States, many countries are revising

their requirements to comply with WTO and NAFTA. In addition, APHIS

continually negotiates with other countries to achieve less onerous

import requirements for U.S. exporters. Since our costs vary depending

on the requirements imposed by the importing country, when other

countries lessen their import requirements, our user fees may decrease.

For example, if a country were to no longer require tests or were to

allow more animals on a single export health certificate, the average

amount of time it would take to provide endorsement services would

decrease and the user fees charged could decrease.

5. Improve Services to Lower Costs

Six commenters suggested that we lower costs and simplify paperwork

requirements. Five commenters suggested that we review and improve

services. Specific suggestions included privatizing services,

automating services, streamlining tests, increasing field staff, and

basing user fees on speed of service.

APHIS continually strives to improve efficiency in operations.

APHIS seeks to eliminate duplication of services and to utilize

employees better without jeopardizing the quality of our work in

carrying out the provisions of the Federal animal quarantine laws. Most

paperwork services and the related costs associated with imports and

exports are required by the importing country and we cannot do anything

directly to change those requirements. However, as explained above, we

do try to negotiate with other countries to make requirements less

onerous. If we propose to eliminate a service for which we have a user

fee, then we will also propose to eliminate the user fee. Likewise, if

in the future we propose to add a service, then we may also propose to

add a user fee for the service. If we propose in the future to

substantially change a service for which we charge a user fee, then we

will recalculate the user fee for the service to reflect those changes.

6. Economic Analysis

One commenter stated that we should have included a small business

impact statement in the proposed rule.

A regulatory flexibility analysis, which includes a small business

impact statement, was included in the proposed regulations at 60 FR

27919-27920.

One commenter stated that the costs used in our economic analysis

did not provide an accurate picture of how importers assess costs

related to importing animals. The commenter specified that these costs

are generally broken down into the following three areas: the purchase

price of the animal, freight charges, and importing or exporting

expenses.

The costs used in the economic analysis performed for the

regulatory flexibility analysis for the proposal included all of these

expenses. As stated in the proposal, the figures shown in the analysis

included purchase and import costs, including freight. Therefore, we

are making no changes as a result of this comment.

7. Effective Date

Three commenters suggested that we delay the effective date of the

final rule.

We understand the commenters' desire to make business plans and not

have business affected by increases in our user fees. Our proposal

signaled our intention to revise the import- and export-related service

user fees. The proposal was published in the Federal Register on May

25, 1995, and open for public comments for 60 days. This rule will not

take effect until 30 days after the date it is published in the Federal

Register. This delay should give the commenters and others adequate

time to prepare.

8. Independent Review

One commenter suggested that a review team should be established to

conduct an independent user fee review.

APHIS monitors user fees regularly and reviews user fees at least

annually to ensure that they continue to correspond with our costs. In

addition, outside reviews are performed by the Office of the Inspector

General and the General Accounting Office (GAO).

9. Privately Owned Import Quarantine Facilities (Secs. 130.4 and 130.5)

One commenter pointed out that inspection services for animals

provided for privately owned permanent import quarantine facilities

under Sec. 130.4 are

[[Page 20424]]

similar to those provided for privately owned temporary import

quarantine facilities under Sec. 130.5, and stated that having

different user fees for similar services is unfair. The commenter

stated that depending on the number of animals being imported, the user

fees could be less for the services provided under Sec. 130.5 during

the regular tour of duty and on overtime than the user fee for the same

services if provided under Sec. 130.4. The commenter asked if APHIS is

recovering all the import-related costs from the hourly user fee

charged under Sec. 130.5; and if so, why is there such a difference

between that hourly user fee and the per head flat rate user fee plus

reimbursable overtime proposed under Sec. 130.4 which can be higher.

The commenter is correct that depending on the number of animals

being imported, if service must be provided on overtime, then the per

head user fees charged under Sec. 130.4 can be higher than the hourly

user fees charged under Sec. 130.5. We have evaluated this situation

and have determined that based on the similar nature of the services

being provided, animals that are imported into a permanent facility

should be charged at the same rate as those imported into a temporary

facility. As suggested by the commenter, we are making the fees the

same. We are making this change by eliminating Sec. 130.4 and including

privately owned permanent import quarantine facilities under

Sec. 130.5.

10. Overtime and Premium User Fees (Secs. 130.5, 130.9, and 130.21)

One commenter stated that charging both reimbursable overtime and

the flat rate user fee under Sec. 130.4 is double charging for the time

spent by USDA personnel.

As explained above, we are eliminating Sec. 130.4 and these

services will now be covered under Sec. 130.5. Under Sec. 130.5, during

overtime, only the premium rate user fee will be charged.

One commenter asked if there are any quarter- or half-hour premium

user fee rates for the premium hourly user fee. We are adding quarter-

hour and minimum rates for each of the new premium user fees. Not

listing such rates was an oversight in the proposal. For periods of

less than an hour, the quarter-hour premium rate will be multiplied by

2 or 3 for half and three quarters of an hour, respectively. Therefore,

we are not adding half-hour premium rates. The premium user fee will

become the new hourly overtime charge for import- and export-related

services; it will apply to services provided under Secs. 130.5, 130.9,

and 130.21 and replace our previous policy of charging a user fee at

the hourly rate (per 9 CFR part 130) plus reimbursable overtime at the

hourly rate (per 9 CFR part 97).

One commenter protested that the proposed premium user fee is an

increase over the current overtime rate.

While the hourly rate for the premium user fee is higher than the

hourly reimbursable overtime rate, application of the premium user fee

will decrease the overall user fee charges because the premium user fee

will be charged in lieu of both the hourly user fee and reimbursable

overtime. Therefore, we are making no changes based on this comment.

One commenter questioned how the new premium user fee will apply.

Another commenter, stating that work for which the user fees are

charged usually takes 15 minutes, protested the minimum time charged

for the work during overtime.

For clarification, in Secs. 130.5, 130.9, and 130.21 we will add

that the procedures for applying the new premium user fee rates will

follow the procedures for applying reimbursable overtime as prescribed

under 9 CFR part 97 with regard, for example, to call-backs,

continuation, commuted travel time, and maximum travel times. For

example, when 9 CFR part 97 prescribes a 2 hour minimum, that 2 hour

minimum will be charged at the premium user fee rate. This is

consistent with United States Code, Title 5 Government Organizations

and Employees, Subchapter V Premium Pay, section 5542 (referenced in

the authority citation for this final rule), which states that

``unscheduled overtime work performed by an employee on a day when work

was not scheduled for him, or for which he is required to return to his

place of employment, is deemed at least 2 hours in duration.'' Because

employees are entitled to a 2 hour minimum of pay in these

circumstances, we must charge a minimum of 2 hours in order to recover

the cost of providing that service on overtime.

11. Import Fee (Sec. 130.7)

One commenter stated that the user fee charged in Sec. 130.7 would

not fully recover costs if an APHIS veterinarian had to travel to a

port to perform the inspections. The commenter suggested that we change

this flat rate user fee to an hourly user fee to fully recover costs.

The commenter is correct that, as calculated, the user fees may not

cover the costs of providing import and entry services at any given air

or ocean port. These user fees were calculated based on the average

time required for an APHIS employee to provide import or entry services

at all ports. The occasional inspections which require an APHIS

veterinarian to travel to a limited port, as designated in 9 CFR part

92, were one of the many factors considered in calculating the user

fees. To reflect past experience, the calculation for these user fees

included 2 hours of travel time for 1 percent of the estimated

importations. We are making no changes based on this comment. However,

we will consider this for future revisions to the user fees. All user

fee changes will be published in the Federal Register for public

comment.

12. Germ Plasm User Fees (Sec. 130.8)

One commenter questioned the statement in the proposal that empty

germ plasm containers that have been exported are presented for

inspection when returned to the United States. The commenter asked if

there was a protocol in place to ensure that these containers are

presented for inspection.

APHIS employees review ship manifests to determine which items need

to be held for inspection. The empty germ plasm containers are listed

on the ship manifests, held, and inspected.

One commenter suggested charging an hourly user fee for import germ

plasm inspections because the time spent performing the inspections at

the port is usually 3 hours; this time would not be covered by the flat

rate user fee.

The calculation for the user fee for imported germ plasm considered

inspection at all ports. These user fees were calculated on the average

direct labor hours required for the inspections nationwide. We surveyed

APHIS employees performing the inspections and visited ports to

determine the amount of direct labor required for the inspections.

Therefore, we are making no changes based on this comment. However, we

will consider this for future revisions. All user fee changes will be

published in the Federal Register for public comment.

One commenter suggested we charge the same amount for endorsing

export health certificates for each group of five embryo donor pairs.

We have determined that there is a marginal cost decrease to

endorse additional groups of donor pairs on the same export health

certificate. User fees are calculated to recover only the cost of

services. Therefore, the proposed tiered user fee rate, with a lower

fee for additional groups of donor pairs on the same certificate, is

appropriate. We are making no changes based on this comment.

[[Page 20425]]

13. User Fees for Endorsing Export Health Certificates (Sec. 130.20)

The May 26, 1995, proposed rule also proposed to raise user fees

for endorsing export health certificates for the exportation of animals

and animal products. APHIS employees endorse export health certificates

in accordance with the regulations in 9 CFR part 91. An APHIS

endorsement certifies that animals and animal products being exported

from the United States are free from communicable diseases.

Most of the comments we received addressed these user fees. The

commenters were opposed to any fee increases. The comments raised the

following issues.

User Fee Increases

According to most of the commenters, proposed user fees for

endorsement of export health certificates are too high, and the

increases are not justified.

We understand that some of the proposed user fees for endorsement

of export health certificates are significantly higher than the

previous user fees. The reason is that the previous user fees were

based on estimates and were set too low. The original user fees for

export health certificates implemented in January 1992 were calculated

using the best information available at that time. Since that time,

APHIS has separately identified, through our accounting system, costs

for services for which user fees are authorized. Our accounting data

and a deficit of over $1 million for each fiscal year from 1992 through

1994 for export-related user fee services shows that the previous user

fees have not been recovering our costs. Our proposed user fees were

calculated based on more accurate information, including all of the

costs of providing our services, than was available when we calculated

our previous user fees.

In addition to our accounting data, we surveyed APHIS locations

nationwide where export health certificates are endorsed to identify

the amount of direct labor time APHIS employees spend providing these

services. Direct labor activities may include the following: Telephone

time for providing information about the export health certification

process, mailing information to customers, protocol research, review of

paperwork such as health certificates, verification of laboratory test

results, confirmation that the importing country's requirements have

been met, paperwork completeness review, certification statements

review, endorsement/signing, placing an official seal on documents if

needed, and completing APHIS paperwork related to the endorsement. Many

of the activities listed above must be performed to make it possible

for APHIS employees to endorse the export health certificates. Some

endorsements are for exportations which are routine and require

relatively little time. Other endorsements require more work and

therefore take more time. Further, endorsements of export health

certificates of the same certificate category take different amounts of

time because import requirements differ for each importing country. On

average, when no tests or vaccinations are required, direct labor time

for endorsing export health certificates varies, by category, between

14 and 22 minutes, for example, endorsements for poultry take 18

minutes. On average, when verification of tests or vaccinations is

required, direct labor time for endorsing export health certificates

varies, based on the number of tests, between 45 and 65 minutes for the

first animal on the certificate.

After estimating the average direct labor time involved in

endorsing export health certificates, direct labor costs were

calculated. To calculate the direct labor costs, we used the actual

salary of each individual that provides the services and weighted these

costs according to the number of export health certificates endorsed at

each location to arrive at the average direct labor rate per hour,

$34.06. This includes salary and benefits.

The average number of minutes per endorsement is multiplied by the

average direct labor rate to arrive at the total direct labor cost in

each certificate category.

User fee calculations were based on the direct labor costs and a

pro rata share of support costs, agency overhead, and Departmental

charges. Costs were assigned directly to a service only when the cost

was directly related to providing that service. Where an expense was

attributable to several or all categories of service, it was pro-rated

among the categories based on historic direct labor staff hours. This

calculation provided the raw fee.

As explained in the proposal, we rounded the raw fees up to the

nearest quarter. We rounded them off to simplify collection and

accounting. We rounded our user fees up, rather than down, because if

we were to round down, even if only by pennies, the user fees would not

fully recover our costs. If there is a shortfall for a service

category, we cannot recover it by charging a higher user fee for

another service category.

We compared the resulting user fees and the revenue they generate

to the costs of these activities for reasonableness. Adjustments were

made for anticipated changes in volume, based on past changes and other

factors such as current market and economic conditions.

We put as much of our supporting data in the proposed rulemaking as

possible. However, it was not feasible to include all the materials

used to develop the user fees. Therefore, as stated in the proposed

rulemaking, we made it available for inspection at our headquarters in

Riverdale, MD.

Many of the comments related to the proposed increases in poultry

health certificates. Therefore, we have included an example of the

calculation for the user fee for endorsing export health certificates

for poultry. The average amount of time it takes to endorse an export

health certificate for poultry is 18 minutes, which can include any of

the direct labor activities listed above. Using the average direct

labor rate per hour of $34.06, the direct labor cost for 18 minutes is

$10.08. As described earlier, the following costs are the pro rata

share for endorsing export health certificates. Administrative support

costs are added at about $0.69 for each $1 of direct labor incurred,

adding $6.89. Agency overhead and departmental charges are added at

$2.74 and $1.08, respectively. The total cost is $20.79, which is

rounded up to the nearest quarter to $21.00. When factoring in all of

the costs involved in endorsing an export health certificate, the fees

are reasonable. When comparing the proposed user fees to the previous

user fees, which were too low, they appear high. However, we could not

continue to provide these services if we did not increase the user fees

to fully recover our costs. Therefore, we are making no changes based

on these comments.

Objections to User Fees for Endorsing Export Health Certificates

Many commenters objected in general terms to user fees for

endorsing export health certificates.

Export health certificates are required by the country importing

the animal or animal product; they are not required by APHIS, USDA, or

any other agency or organization within the Federal Government.

Therefore, we are unable to eliminate services and costs associated

with the endorsement of export health certificates. However, we do

attempt, whenever possible, to negotiate with foreign governments to

eliminate export health certificate requirements or make them less

onerous to U.S. exporters. We are continually negotiating with other

countries to

[[Page 20426]]

eliminate or minimize requirements. The success of our negotiations can

be seen in the following changes in other country's requirements.

Canadian test requirements for blue tongue tests on live cattle have

been liberalized. Chile has dropped test requirements for contagious

caprine pleuropneumonia tests on U.S. goats. Argentina has dropped test

requirements for contagious equine metritis test requirements for

horses. In addition, there are ongoing negotiations with Mexico to

eliminate their requirement that breeding swine be tested for porcine

respiratory and reproductive syndrome, and with Russia to sustain

markets for U.S. fresh and frozen poultry meat. We will continue to

work for improvements in these and other areas.

Small Business

Many commenters maintained the proposed APHIS user fees would be

detrimental to small businesses in general, or to specific industries,

such as manufacturers of medical diagnostic reagents. Other commenters

stated that paying the user fees would be a hardship, increase their

cost of doing business, or have other detrimental effects. Some

commenters proposed that we exempt certain industries or classes of

users from the proposed user fees or charge them reduced fees. Among

those mentioned were members of the poultry industry involved in the

National Poultry Improvement Plan.

We realize that the proposed user fees may increase the up-front

cost of doing business. APHIS sympathizes with these commenters and has

attempted to minimize the cost of services to keep the user fees at the

lowest possible level for all users.

However, when Congress authorized APHIS to prescribe and collect

user fees to recover the costs of import- and export-related services

for animals, birds, and animal products, it specifically reduced APHIS'

appropriations by the estimated amount of providing such services.

Currently, APHIS is not appropriated funds to cover the cost of

providing these services. Therefore, APHIS cannot exempt certain

classes of users, such as small businesses, from the user fees, and

cannot charge user fees which recover less than the full cost of

providing the service without using funds appropriated for other

purposes. We are therefore not making any changes based on these

comments.

Services Provided

Nine commenters addressed the services for which APHIS charges user

fees to endorse export health certificates. Several commenters raised

more than one issue; specific issues follow.

Five commenters took exception to the perceived duplication of

services provided by local veterinarians and APHIS veterinarians.

Even though local veterinarians may be federally accredited,

importing countries require an APHIS veterinarian to endorse export

health certificates.

Several commenters objected to user fees for services required by

the regulations, as opposed to voluntary services.

Our authority to collect user fees does not distinguish between

mandatory and voluntary services. Further, we do not agree with the

commenters' basic proposition that users do not ask for APHIS services

if they are complying with a regulatory requirement. As stated in

Sec. 130.20 of the regulations, ``An export certificate may need to be

endorsed for an animal being exported from the United States if the

country to which the animal is being shipped requires one. APHIS

endorses export health certificates as a service.'' No one is required

to conduct any business or endeavor which is regulated by APHIS.

However, anyone who does so must comply with APHIS requirements. In

this manner, all users ask for service from APHIS.

APHIS services are provided to enhance U.S. agriculture. APHIS

services concerning exportation of animals and animal products are

designed either to provide services to exporters which they need in

order to meet requirements of the importing country, or to help ensure

that no infected animals or animal products are exported from the

United States. This service helps protect the individual exporter and

helps foreign markets for American animals and animal products.

Many commenters asserted that most of the work is performed by the

exporters and local veterinarians, and that APHIS only signs the forms.

Even though in some instances it may appear to the person obtaining

the endorsement for the export health certificate that the only step

APHIS does is sign the certificates, there are many other steps that

may be involved. As explained earlier in response to another comment,

direct labor activities may include the following: Telephone time for

providing information about the export health certification process,

mailing information to customers, protocol research, review of

paperwork such as health certificates, verification of laboratory test

results, confirmation that the importing country's requirements have

been met, paperwork completeness review, certification statements

review, endorsement/signing, placing an official seal on documents if

needed, and completing APHIS paperwork related to the endorsement. Many

of the activities listed above must be performed to make it possible

for APHIS employees to endorse the export health certificates.

Multiple Versus Single Export Health Certificates

Three commenters were concerned about whether we would charge for

multiple or single export health certificates in situations where

multiple export health certificates are required for a single

exportation or where multiple similar export health certificates are

required in a limited time. Examples included egg shipments to one

corporate agent who then redistributes the eggs to various customers;

containers of export product which require up to five copies of the

same export health certificate, each requiring an original signature;

and hundreds of export health certificates per month where the

commenter suggested that economies of scale and time management could

be realized if numerous certificates are signed at the same time.

Different countries have different requirements as to the number

and kinds of tests that are required and the number of animals, birds,

or animal products which can be covered by one export health

certificate. As a result, the amount of time required to endorse export

health certificates varies. Since our goal is to fully recover our

costs, we charge the user fee that equals the work required for an

export health certificate going from one consignee to one consignor. If

the APHIS employee responsible for endorsing the export health

certificate determines that the animals, birds, or animal products are

part of one consignment, originating from one farm or ranch and

destined for one location, the user is charged as though all of the

animals, birds, or animal products are on one export health

certificate. If this is not the case, more work may be required for the

endorsement, and a separate fee is assessed for each endorsement. For

occasions where shipments being exported from the same consignor to the

same consignee are presented a day apart, a separate fee is charged for

each endorsement.

Nonendorsed Export Health Certificates

Seven commenters opposed the new user fee in Sec. 130.20(d) for

nonendorsed export health certificates. There

[[Page 20427]]

appeared to be confusion about the reasons for charging the user fee

for nonendorsed export health certificates and when the user fee would

be charged.

To clarify our intentions, we are not charging $16.50 for blank

export health certificates. Rather, the user fee will be assessed after

the APHIS veterinarian has received the export health certificate for

endorsement, has begun to review it, and subsequently finds a problem

which prevents him or her from endorsing the export health certificate

as presented. At this point the APHIS veterinarian will return the

nonendorsed export health certificate to the exporter for corrective

action. Since work has been performed, we must charge the user fee to

recover our costs for the services. To clarify this, we are revising

the wording proposed in Sec. 130.20(d) to specify that the charge

applies to export health certificates presented for endorsement which

were reviewed, but not endorsed.

Nonslaughter Horses to Canada

One commenter raised concerns about the movement of race horses to

Canada. The commenter maintained that export health certificates and

inspections should not be required for race horses, and stated that

Canadian race tracks are dropping the Coggins test requirement.

As explained earlier, we are continually negotiating with Canada

and other countries to eliminate or minimize their import requirements.

The movement of race horses is one of the items under discussion. If

Canadian requirements change, or if a service is no longer required

because Canada has changed its import requirements, any corresponding

fee changes will be published in the Federal Register for public

comment.

Slaughter Animals to Canada or Mexico

One commenter questioned whether, for slaughter animals going to

Canada or Mexico, we will charge the flat rate user fee in

Sec. 130.20(a) or the scaled user fee in Sec. 130.20(b)(1) which is

based on the number of tests or vaccinations required for the animals

listed on the export health certificate. This question was raised

because all cattle, including slaughter cattle, are required to be

tested for tuberculosis and brucellosis prior to exportation.

To fully recover our costs, the user fees in Sec. 130.20(b)(1)

apply whenever tests or vaccinations are required. Costs associated

with endorsing export health certificates which cover individually

identified animals requiring tests or vaccinations are higher than

those which cover animals as a group which do not require tests or

vaccinations. This is because APHIS personnel must verify the results

of tests or vaccinations. The greater the number of animals, and the

larger the number of tests or vaccinations, the more time consuming it

is for APHIS personnel to perform the verifications necessary to

endorse export health certificates. To clarify which fee is charged, we

are revising the text in Sec. 130.20(a) and (b)(1) to indicate that

Sec. 130.20(b)(1) applies when tests or vaccinations are required and

Sec. 130.20(a) applies when tests and vaccinations are not required.

Reconsider User Fee Increases

Three commenters suggested that we reconsider the user fee

increases for export health certificates and get more input from

industry.

By publishing the proposed rule and requesting comments for 60 days

we believe that we have provided industry with ample opportunity to

provide input into the changes in the export health certificate user

fees. Therefore, we are making no changes based on these comments.

APHIS veterinarian

One commenter questioned what would happen when an export health

certificate for an animal product is not endorsed by an APHIS

veterinarian, but by another APHIS employee.

Other designated APHIS employees may endorse export health

certificates for animal products. Therefore, in Sec. 130.20(d), we are

changing the term ``APHIS veterinarian'' to ``designated APHIS

employee''.

14. Payment of User Fees (Sec. 130.50)

One commenter suggested that we charge user fees in whole dollar

amounts to eliminate the need for APHIS offices to keep and make

change.

APHIS offices should rarely need to accept cash, as we also accept

credit cards and checks in payment for user fees. The regulations

explain that a list of the APHIS offices which accept each form of

payment is available from APHIS headquarters in Riverdale, MD. The

slight inconvenience to APHIS created by accepting change is more than

offset by convenience to the public. Therefore, we are making no

changes based on this comment.

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, with the changes discussed in this document.

Executive Order 12866 and Regulatory Flexibility Act

This rule has been reviewed under Executive Order 12866. The rule

has been determined to be significant for the purposes of Executive

Order 12866 and, therefore, has been reviewed by the Office of

Management and Budget.

In accordance with 5 U.S.C. 601 et seq., we have performed a Final

Regulatory Flexibility Analysis, set forth below, regarding the

economic effect of this rule on small entities.

Need and Objective of This Rule

In accordance with the Farm Bill of 1990, the Secretary of

Agriculture is authorized to prescribe and collect fees to reimburse

the Secretary for the cost of carrying out the provisions of the

Federal animal quarantine laws that relate to the importation, entry,

and exportation of animals, articles, or means of conveyance (section

2509(c)(1) of the 1990 Farm Bill). The Secretary of Agriculture is also

authorized, under section 2509(c)(2) of the Farm Bill, to prescribe and

collect fees to recover the costs of carrying out certain veterinary

diagnostics services. As a result of this authority, Congress no longer

allocates funds to APHIS for these import- and export-related services

and veterinary diagnostics services. Therefore, we established user

fees which were intended to recover the full cost of providing these

services. The cost of providing these services includes direct labor

costs and a pro rata share of administrative support, agency overhead,

and Departmental charges.

When we established our original user fees on February 9, 1992, we

used the best estimates we had available. At that time, our accounting

system did not track costs related to these services separately from

other appropriation funded activities. When a service has been provided

to the users free of charge for years, it is difficult to predict the

economic decisions people will make regarding those services after a

user fee is established. Therefore, we had to estimate the costs and

the demand for those services without historical data for import- and

export-related services.

Since we established these user fees, our accounting system has

tracked the costs associated with user fees by imports and exports and

for veterinary diagnostics. Therefore, we now have actual cost and

usage data for our calculations. This has also improved the accuracy of

our estimates for other user fees. The original user fees established

on February 2, 1992, were primarily for export-related services. On

September 1, 1993, we established user fees for veterinary diagnostics

services. On

[[Page 20428]]

January 21, 1994, we established additional user fees primarily for

import-related services. Annual reviews of our user fees, based on our

accounting data and experience with providing these services, show that

while many of the estimates resulted in accurate user fees which

require only moderate increases, some of our original user fees were

significantly lower than the cost of providing the services. Because

these user fees were set too low, we have been running a deficit to

provide the requested services. Therefore, these user fees must be

increased to recover the costs of providing requested services.

Specifically, we reviewed our records of user fees collected during

fiscal years (FYs) 1992 through 1995. The original user fees

established on February 9, 1992, are based on FY 90 costs. In the 5

years since then, there has been an overall increase in all costs of

providing services, due to inflation and changes in general economic

conditions. Additionally, we underestimated personnel costs when we set

the user fees. For example, in addition to anticipated Federal pay

increases (4.2 percent in FY 92 and 3.7 percent in FY 93), in FY 94,

there were locality pay and cost of living increases of 3.09 to 8

percent for employees stationed in different parts of the United

States. We also underestimated support costs, such as clerical support,

office rent, telephone, etc., in setting our current user fees. As a

result, the costs of endorsing export health certificates, for example,

for which we established user fees on February 9, 1992, were

drastically underestimated. In addition, the user fees established on

January 21, 1994, lacked the pay raises and increased costs since they

were calculated in 1993 based on FY 92 costs.

As a result of general cost increases and the inherent difficulty

in setting new user fees, as discussed above, we did not collect enough

money in user fees during FYs 1992 through 1995 to recover the costs of

providing the services for which we charged user fees. In fact, for

each of those fiscal years, we incurred a deficit of over $1 million.

As our user fees are intended to recover full cost, it is apparent that

our user fees are too low and must be raised to reflect changes in

actual costs and demand for services.

Changes to the Regulations

Consequently, this rule updates certain user fees related to

import- and export-related inspection and certification, animal

quarantine, and veterinary diagnostics. This rule changes user fees

that are currently charged for eight broad categories of services.

These services include the inspection, certification, or authorization

of: (1) live animal imports at animal import centers; (2) live animal

imports at the Mexican border; (3) live animal imports at the Canadian

border, airports, and ocean ports; (4) other import and inspection

services for the importation of live animals and animal products; (5)

veterinary diagnostics; (6) the endorsement of export health

certificates; (7) facility rentals at APHIS' animal import centers and

(8) import and export hourly user fees. New user fees are also being

established for the exclusive use of additional space at the Animal

Import Center in Newburgh, NY, for the endorsement of export health

certificates for animal products, and for pet birds quarantined in an

APHIS owned or supervised quarantine facility. In addition, we are

changing our method of charging hourly user fees when import- and

export-related services are performed outside of an employee's normal

tour of duty.

Overall Impact of Changes

Table 1 summarizes the estimated changes in user fees that are

necessary to fully recover costs. This rule will result in a net

increase in agency collections of about $3 million, from $8 million to

$11 million. Approximately $1.1 million of this increase represents new

user fees and $2 million is attributed to changes in current

collections (revised and premium user fees). These changes will shift

the burden from taxpayers to the importers and exporters who use these

APHIS services. Additional tables providing details of the user fee

changes summarized in Table 1 are available for inspection at USDA,

room 1141, South Building, 14th Street and Independence Avenue SW.,

Washington, DC, between 8 a.m. and 4:30 p.m., Monday through Friday,

except holidays. Persons wishing to inspect these detailed tables are

requested to call ahead on (202) 690-2817 to facilitate entry into the

reading room.

Table 1.--Summary of Estimated Collections for Import- and Export-Related Services \1\

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

Category Current Projected Change

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

New User Fees:

Exclusive use of space at the Newburgh, NY Animal Import

Center (9 CFR Sec. 130.3)................................. .............. $157,109 $157,109

Quarantine for pet birds (9 CFR Sec. 130.10)............... .............. 265,245 265,245

Endorsement of export health certificates for animal

products (9 CFR Sec. 130.20).............................. .............. 645,000 645,000

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

Total New User Fees..................................... .............. 1,067,354 1,067,354

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

Revised User Fees:

Animal import centers (9 CFR Sec. 130.2)................... 2,168,468 2,461,334 292,865

APHIS animal import centers and hourly user fees (9 CFR

Secs. 130.3, 130.5, 130.9, 130.10, and 130.21)............ 648,318 740,942 92,624

Imports at the Mexican border (9 CFR Sec. 130.6)........... 1,047,184 1,214,532 167,349

Imports at other ports of entry (9 CFR Sec. 130.7)......... 817,862 834,251 16,388

Import and inspection services (9 CFR Sec. 130.8).......... 944,087 970,072 25,986

Veterinary diagnostics (9 CFR Sec. 130.16)................. 450,118 429,076 (21,042)

Endorsements of export health certificates (9 CFR Sec.

130.20).................................................... 798,260 2,195,111 1,396,851

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

Total Revised User Fees................................. 6,874,296 8,845,316 1,971,020

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

Premium User Fees (9 CFR Secs. 130.5, 130.9, and 130.21)....... 990,900 1,033,319 42,419

=================

Total Revised Collections (Revised and Premium User

Fees).................................................. 7,865,196 9,878,635 2,013,439

=================

[[Page 20429]]

Projected Total (New and Revised)....................... 7,865,196 10,945,989 3,080,793

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

\1\ Projections based on average annual volume estimates provided by the Financial Systems and Services Branch,

Budget and Accounting Division, Management and Budget, APHIS, USDA. NOTE: Column and row totals may not be

exact due to rounding.

Summary of Comments, Assessment of Issues, and Resulting Changes

Due to the nature of this rule, most of the comments we received on

the proposed rule focused on economic issues; several took exception to

the results of our economic analysis. The comments raised concerns

about potential inequitable charges for permanent and temporary

privately owned import quarantine facilities (Sec. 130.4 and

Sec. 130.5, respectively), impacts on small entities, increases in user

fees for the endorsement of export health certificates, and impact on

international trade. As a result of the issues raised about inequitable

charges, we combined the user fee regulations for permanent and

temporary facilities under Sec. 130.5 and removed Sec. 130.4 from the

regulations. This will result in lower charges for economies of scale

where there are multiple animals in a single shipment than those

previously assessed under Sec. 130.4 for permanent facilities.

Assessments of the other issues raised are provided in the more

detailed economic analysis below.

Impact on Small Entities

User fee revisions included in this rule could affect some

importers and exporters of live animals, importers and exporters of

animal byproducts, and firms that seek APHIS' veterinary diagnostic

services. We received comments from importers and exporters, many of

whom are small entities. The Small Business Administration's definition

of a small entity involved in these activities is one whose total sales

is less than $5 million annually. The number of entities who are

importing and exporting live animals and would qualify as a small

entity under this definition cannot be determined. However, except

possibly for those entities who deal exclusively in more valuable

animals, such as breeding or registered animals, data from the 1995

Bureau of the Census indicates that the majority of agricultural

entities who deal in less valuable animals, such as feeding or

slaughter animals, can be considered small. While there is a wide range

in the sizes of entities who use our import- and export-related

services, our experience shows that as many as 50 percent may be

considered large.

To the extent that changes in user fees will impact operational

costs or profits, any entity who utilizes APHIS's services and is

subject to user fees will be impacted by this rule. The degree of the

impact depends on the entity's market power, or the ability to which

cost increases can be either absorbed or passed on to its buyers.

Without information on either profit margins and operational expenses

of the affected entities,2 or the supply responsiveness of the

affected industry,3 the impacts cannot be precisely predicted.

However, given the amount of the user fee changes (and new user fees)

relative to the value of the imported or exported animals and animal

products, some conclusions on overall impacts to domestic and

international commerce are drawn below.

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

\2\ Information on profits from sales by small entities is

proprietary in nature and was not available to APHIS for this

analysis.

\3\ The measurement of supply responsiveness would provide

information on the likely impact on an entity's production due to

changes in operating costs.

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

Exports

Many comments addressed the impact these user fee increases will

have on exports. Most of these comments objected to increases in the

user fees for the endorsement of export health certificates. Many of

the comments we received focused on the impact on entities in the

poultry and horse industries.

Most of the commenters stated that the increase in the user fee for

the endorsement of export health certificates for poultry and hatching

eggs is too high. As explained earlier, these user fees were based on

FY 90 costs and low estimates of personnel costs. The user fees have

not been increased in 5 years, and the original user fees were

drastically underestimated.

Breeding chicks and hatching eggs, while worth only fractions of a

dollar individually, are generally exported in batches of up to

hundreds of thousands; the total value of these shipments could exceed

$10,000. As shown in Table 2, the user fee for the endorsement of

export health certificates for poultry and eggs is $21.00 (an increase

of $19.00 from the original $2.00 user fee). The user fee is less than

0.5 percent of the estimated value of a shipment. Therefore, while the

increase in the user fee is significant, the user fee is still small

relative to the total value of the shipments. Table 2: Projected User

Fee Collections for the Endorsement of Export Health Certificates (9

CFR Sec. 130.20).4

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

\4\ Projections based on average annual volume estimates

provided by the Financial Systems and Services Branch, Budget and

Accounting Division, Management and Budget, APHIS, USDA. Note:

Column and row totals may not be exact due to rounding.

[[Page 20430]]

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

User fee Collections

Category Annual ----------------------------------------------------------------

volume Current New Change Current Projected

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

Per Certificate User Fees:

Slaughter Animals to Canada or

Mexico....................... 4,811 $10.00 $24.50 $14.50 $48,110 $117,870

Non-Slaughter Horses to Canada 27,275 10.00 26.25 16.25 272,750 715,969

Poultry....................... 7,037 2.00 21.00 19.00 14,074 147,777

Hatching Eggs................. 7,036 2.00 21.00 19.00 14,072 147,756

Other:

Endorsements.................. 20,748 4.00 16.50 12.50 82,992 342,342

Per Head User Fees:

Export Animal, 1-2 tests...... 2,656 38.00 52.50 14.50 100,928 139,440

Each additional animal.... 35,235 1.00 3.00 2.00 35,235 105,705

Export Animal, 3-6 tests...... 3,950 41.50 64.75 23.25 163,925 255,763

Each additional animal.... 34,905 1.25 5.00 3.754 3,631 174,525

Export Animal, 7 + tests...... 421 44.00 75.75 31.75 18,524 31,891

Each additional animal.... 2,679 1.50 6.00 4.50 4,019 16,074

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

Projected totals...... ........... ........... ........... ........... 798,260 2,195,111

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

Since many of the comments related to the proposed increases in

user fees for the endorsement of export health certificates concerned

poultry and egg exports, we will show how this user fee is calculated

by using, as an example, the endorsement of an export health

certificate for poultry. The calculation for the user fees for

endorsing other export health certificates varies by the amount of

direct labor hours required to provide the endorsement services. The

average amount of time it takes to endorse an export health certificate

for poultry is 18 minutes. The direct labor time includes phone time,

paperwork review time, and endorsement time. Using the average direct

labor cost per hour of $34.06, the direct labor cost for 18 minutes is

$10.08. As described earlier, the following costs are the pro rata

share for endorsing export health certificates.

Administrative support costs are added at about $0.69 for each

$1.00 of direct labor incurred, adding $6.89. Administrative support

costs include local clerical and administrative activities; indirect

labor hours (supervision of personnel and time spent doing work that is

not directly connected with the service but which is nonetheless

necessary, such as repairing equipment); travel and transportation for

personnel; supplies, equipment, and other necessary items; training;

general supplies for offices, washrooms, cleaning, etc.; contractual

services (such as guard service, maintenance, trash pickup, etc.);

grounds maintenance; chemicals and glassware; and utilities (such as

water, telephone, electricity, natural and propane gas, heating and

diesel oil). Some administrative support items may be contractual or

not, depending on local circumstances. For example, trash pickup may be

provided as a contractual service or a utility. However, the costs are

all administrative support.

In addition, Agency overhead and departmental charges are added at

$2.74 and $1.08, respectively. The total cost is $20.79, which is

rounded up to the nearest quarter to $21.00. When factoring in all of

the costs involved in endorsing an export health certificates, the user

fees are reasonable. When comparing the proposed user fees to the

previous user fees, which were based on FY 90 costs and were too low,

they appear high. However, we could not continue to provide these

services if we did not increase the user fees to fully recover our

costs.

The value of a non-slaughter horse could range between $1,000 and

$50,000 and more. As shown in Table 2, the user fee for non-slaughter

horses to Canada is $26.25 (an increase of $16.25 from the original

$10.00 user fee). The user fee is less than 3 percent of the lower

value for the non-slaughter horse. Therefore, the user fee is small

relative to the total value of the horse.

Many commenters stated that the user fees for the endorsement of

export health certificates that require the verification of tests are

too high. As shown in Table 2, for any animal, endorsements requiring

the verification of 1 or 2 tests increased by $14.50 per endorsement

(from $38.00 to $52.50). The largest increase of $31.75 per endorsement

(from $44.00 to $75.75) relates to the endorsement of export health

certificates that require verification of 7 or more tests required by

the importing country. Of the 80,277 certificates endorsed in FY 94,

only 421 certificates (or 0.5 percent) were issued that required the

verification of 7 or more tests. These certificates covered 3,092

animals for an average charge of $7.29 per animal ($44.00 for the first

animal and $1.50 for additional animals on a certificate). The new user

fees raise this average to $15.50 per animal ($75.75 for the first

animal and $6.00 for additional animals on a certificate), or a

difference of $8.21 per animal. Certificates that are issued in this

category are endorsed largely for the export of breeding or registered

animals whose worth could be over $2,000 per animal. It is therefore

expected that these user fee increases will not have a significant

impact on exporters, given that the amount of the increases is small in

comparison to the value of the exported animals.

Impact on International Trade

Several commenters suggested that the increases in user fees could

result in a decrease in international trade. Most of the commenters

specified trade in poultry, horses, and cattle to Canada. As stated

above, the increases in the user fees are small in relation to the

value of the exported animals. While it follows that some businesses

will feel the impact of these increases, overall, the revised user fees

are not expected to impede commerce and international trade.

Although some countries do not currently charge for import- and

export-related services, user fees for these services are being adopted

by more and more countries. In fact, as of May 8, 1995, Canada charges

user fees for certain import- and export-related services (see May 3,

1995, Canada Gazette Part II, Vol. 129, No. 9, SOR/DORS/95-198). In

addition, further supports have been eliminated. Therefore, we do not

believe that U.S. exporters are at a competitive disadvantage compared

with exporters in other countries.

[[Page 20431]]

Imports

While most comments addressed exports, several objected to the

increases in user fees for import-related services. For import-related

services for animals at all ports of entry, including Canadian and

Mexican borders, and animal import centers, increases from the previous

user fees range from $0.25 to $21.00. Except for the increases of

$12.75 to $21.00 for import services for equines at animal import

centers, the other increases are all $5.50 or less, while the majority

of these user fee increases are less than $1.00. These changes

represent modest increases and are a small fraction of the typical cost

of purchasing and importing a breeding grade animal into the United

States, which ranges between $1,500 and $5,000 per head. Purchase and

import costs for feeder and slaughter animals are often significantly

lower per animal, but can easily exceed $1,500 per shipment depending

on the number and type of animals in the shipment.

The increase in user fees for other import services related to

animal products and byproducts range from $0.50 for an application for

a permit renewal, to $10.25 for the inspection of an approved

establishment. Because the user fees charged in this category of

service are based on either a per load, inspection, application, or

certification basis, the amount of increase is small in comparison to

the total value of the animal products and byproducts for which the

services are required. The majority of the increases are $1.50 or less.

The $1.50 increase per permit for the importation of germ plasm (from

$38.00 to $39.50), for instance, is not expected to cause a significant

economic burden to importers, given that the cost of importing semen

could be over $100,000 per permit when imported from countries with

foot-and-mouth disease. Although the breakdown of entity sizes is

unknown, as stated above, the revised user fees are not expected to

have a significant impact on either large or small importers of live

animals and animal products.

Shift From Reimbursable Overtime to Premium User Fees

This rule also changes the way in which hourly user fees for

import- and export-related services conducted outside an employee's

normal tour of duty will be charged. While revising our user fees, we

took many factors into account, including public confusion about the

way we charged for services provided during overtime. As a result, we

changed the method of charging hourly user fees for import- and export-

related services provided outside of an employee's normal tour of duty.

Now, users of these services, previously charged the hourly user fee

plus reimbursable overtime, will be charged the single new premium user

fee. This premium user fee reflects both changes in costs and a change

in the structure of the user fee. The intent of this change is to avoid

any confusion and the perception of double charging for services. The

impact is to lower the average hourly user fees for import- and export-

related services performed outside of an employee's normal tour of

duty.

The $1 million projected collection for this category represents a

modest increase, approximately $40,000, to APHIS collections. All of

the projected calculations are not considered new user fees or new

collections for APHIS for the following reasons. In FY 95, we collected

$990,900 for import- and export-related services that involved a

combination of both hourly user fees and reimbursable overtime. Of

this, $398,425 was collected at the $50.00 hourly user fee, and

$592,475 was collected at the reimbursable overtime rates specified in

9 CFR 97 (for example, $37.84 for holidays and overtime other than on

Sundays). As explained below, a portion of the $398,425 was for

services that began during the regular tour of duty and for which the

hourly user fee will still be charged.

The hourly user fee charges ($398,425) include the costs for

services which may have begun during the regular tour of duty but were

completed on overtime in addition to the hourly user fee charge for the

services provided during overtime. Our accounting system tracks user

fees and reimbursable overtime separately. While we can identify total

hourly user fees and total reimbursable overtime hours performed in

conjunction, we cannot specifically identify the hours of services

which began on regular time and continued into overtime.

Next, reflecting the change in costs, we estimated FY 95

collections using the increased FY 96 hourly rate of $56.00 plus

reimbursable overtime. With this increase in the hourly user fee, the

projected FY 96 collections would have been $1,040,298 ($447,823 at

$56.00 per hour for hourly user fees and $592,475 at the reimbursable

overtime rates as described above).

Finally, we changed the method of charging user fees for hourly

services performed during overtime to a single premium user fee. To

calculate the projected FY 96 collections for the premium user fee

($1,033,319), we used the total FY 95 hours multiplied by the average

premium user fee (6 out of 7 days at $65.00 plus 1 out of 7 days at

$74.00, the sum divided by 7 days in a week). Our historical accounting

data for reimbursable overtime confirms this method resulted in a

reasonable split between Sunday and other overtime.

These calculations show an estimated overall increase of

approximately $40,000. While this is a modest increase over the

previous charges for services performed outside employees' normal tour

of duty, this is a decrease of approximately $7,000 from the increases

which would have been incurred under the old method. Therefore,

entities should realize a long-term economic benefit from the lower

increase.

Based on the earlier discussion of the regular time, which is

included in the estimates for reimbursable overtime, it follows that

the premium user fee, which was estimated for the same number of hours

as the reimbursable overtime plus hourly user fee, is an overestimate

of charges, as some of these hours will remain at $56.00 per hour.

Therefore, we anticipate that the increase will be lower than our

estimate shows.

Summary

In summary, while it follows that, if the user fees cannot be

passed on, the profit margins of some entities may decline as user fees

for endorsing export health certificates are increased. However, the

revised user fees represent a small fraction of the value of the

imported and exported animals and are not generally expected to reduce

profits or impede exports. Indeed, the full burden of the user fee

increases are not likely to be borne entirely by the directly affected

entities, as some of the cost increases are expected to be passed on to

the purchasers of these exported animals.

Alternatives

One alternative to this rule would be to take no action. Another

alternative to this rule would be to establish a different user fee

structure for small businesses. We do not consider taking no action a

reasonable alternative, because we would not recover the full cost of

providing import- and export- related services and would continue to

incur annual deficits of over $1 million. We also do not consider

establishing a different user fee structure for small businesses a

viable option. As stated above, Congress does not appropriate funds to

APHIS for these services. Therefore, APHIS cannot exempt certain

classes of users, such as small businesses, from the user fees, and

cannot charge user fees that recover less

[[Page 20432]]

than the full cost of providing the service.

Another alternative to this rule would be to spread the increased

costs over all of the user fees, so no single user fee would increase

significantly. Our user fees are calculated to recover the costs of the

service for which each user fee is charged. To spread the increases

would mean that some entities would subsidize others. The intent of

these user fees is to shift the burden of the cost of these services

from the general taxpayer to the entity receiving the service.

Therefore, APHIS cannot spread the increases evenly over all of the

user fees.

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

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.

3501 et seq.), the information collection or recordkeeping requirements

included in this rule have been approved by the Office of Management

and Budget (OMB), and there are no new requirements. The assigned OMB

control numbers are 0579-0015, 0579-0040, 0579-0055, and 0579-0094.

List of Subjects in 9 CFR Part 130

Animals, Birds, Diagnostic reagents, Exports, Imports, Poultry,

Quarantine, Reporting and recordkeeping requirements, Tests.

Accordingly, 9 CFR part 130 is amended as follows:

PART 130--USER FEES

1. The authority citation for part 130 is revised to read as

follows:

Authority: 5 U.S.C. 5542; 7 U.S.C. 1622; 19 U.S.C. 1306; 21

U.S.C. 102-105, 111, 114, 114a, 134a, 134b, 134c, 134d, 134f, 135,

136, and 136a; 7 CFR 2.22, 2.80, and 371.2(d).

2. In Sec. 130.1, the definitions for Germplasm and Pet bird are

removed; the definition for Load is revised; and definitions for Germ

plasm, Pet birds, Test, and United States are added, in alphabetical

order, to read as follows:

Sec. 130.1 Definitions.

* * * * *

Germ plasm. Semen, embryos, or ova.

* * * * *

Load. Those animals, birds, or animal germ plasm, presented for

importation into the United States in a single shipment, that originate

from one address, are destined for one address, and require one entry

permit or authorization.

* * * * *

Pet birds. Birds, except ratites, which are imported for the

personal pleasure of their individual owners and are not intended for

resale.

* * * * *

Test. A single analysis performed on a single specimen from an

animal, animal product, commercial product, or animal feed.

United States. The several States of the United States, the

District of Columbia, Guam, the Commonwealth of the Northern Mariana

Islands, the Commonwealth of Puerto Rico, the Virgin Islands of the

United States, and all other territories and possessions of the United

States.

* * * * *

3. Section 130.2 is amended as follows:

a. By revising the section heading and in paragraph (a), the table,

to read as set forth below.

b. By adding at the end of the section the OMB control number as

set forth below.

Sec. 130.2 User fees for individual animals and certain birds

quarantined in APHIS Animal Import Centers.

(a) * * *

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

Animal or bird Daily

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

Birds (including zoo birds, but excluding ratites and pet

birds imported in accordance with part 92 of this

subchapter):

0-250 grams.............................................. $1.00

251-1,000 grams.......................................... 3.25

Over 1,000 grams, and any bird in nonstandard housing or

receiving nonstandard care and handling................. 7.50

Ratites:

Chicks (less than 3 months of age)....................... 5.75

Juveniles (3 months through 10 months of age)............ 8.00

Adults (11 months of age and older)...................... 16.25

Poultry (including zoo poultry):

Doves, pigeons, quail.................................... 2.00

Chickens, ducks, grouse, guinea fowl, partridge, pea

fowl, pheasants......................................... 3.50

Game cocks, geese, swans, turkeys, any poultry housed in

nonstandard housing or receiving nonstandard care and

handling................................................ 8.25

Equines (including zoo equines, but excluding miniature

horses):

1st through 3rd day...................................... 149.50

4th through 7th day...................................... 108.25

8th and later days....................................... 91.75

Miniature horses............................................. 40.25

Zoo animals (except equines, birds, and poultry)............. 32.25

Domestic animals:

Camels, cattle, bison, buffalo........................... 56.50

All others............................................... 15.00

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

* * * * *

(Approved by the Office of Management and Budget under control

number 0579-0094.)

4. Section 130.3 is amended as follows:

a. In paragraph (a)(1), by revising the table to read as set forth

below.

b. By revising paragraph (c)(3) to read as set forth below.

c. By revising the OMB control numbers at the end of the section as

set forth below.

Sec. 130.3 User fees for exclusive use of space at APHIS Animal Import

Centers.

(a)(1) * * *

[[Page 20433]]

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

Monthly user

Animal import center Space available fee

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

Miami, FL:

South Wing..................... 6,952 sq. ft........... $30,285.00

(645.9 sq. m.).........

North Wing..................... 6,545 sq. ft........... 29,377.00

(608.1 sq. m.).........

Newburgh, NY:

Space A........................ 5,904 sq. ft........... 47,609.00

(548.5 sq. m.).........

Space B........................ 9,742 sq. ft........... 78,555.00

(905 sq. m.)

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

* * * * *

(c) * * *

(3) If the importer chooses to pay for additional services on an

hourly basis, the user fees for each employee required to perform the

service are:

(i) $56.00 per hour;

(ii) $14.00 per quarter-hour;

(iii) With a minimum of $16.50.

* * * * *

(Approved by the Office of Management and Budget under control

numbers 0579-0040 and 0579-0094.)

Sec. 130.4 [Removed and reserved]

5. Section 130.4 is removed and reserved.

6. Section 130.5 is amended as follows:

a. The section heading, is revised to read as set forth below.

b. In paragraph (a), before the word ``temporary'', by adding the

words ``permanent or''.

c. In paragraph (b)(1), by removing ``$50'' and adding ``$56'' in

its place.

d. In paragraph (b)(2), by removing ``$12.50'' and adding

``$14.00'' in its place.

e. In paragraph (b)(3), by removing ``$16.00'' and adding

``$16.50'' in its place.

f. By adding a new paragraph (c) to read as set forth below.

g. By adding at the end of the section the OMB control number as

set forth below.

Sec. 130.5 User fees for services at privately operated permanent and

temporary import-quarantine facilities.

* * * * *

(c) If a service must be conducted on a Sunday or holiday or at any

other time outside the normal tour of duty of the employee, then the

premium user fee rate, as provided for in 9 CFR part 97, in lieu of the

user fee listed in paragraph (b) of this section, must be paid for each

employee required to perform each service:

(1) $65.00 per hour for weekdays and holidays;

(2) $16.25 per quarter-hour for weekdays and holidays;

(3) $74.00 per hour for Sundays;

(4) $18.50 per quarter-hour for Sundays;

(5) With a minimum of $16.50.

(Approved by the Office of Management and Budget under control

number 0579-0094.)

7. Section 130.6 is amended as follows:

a. In paragraph (a), by removing ``$16.00'' and adding ``$16.50''

in its place.

b. In paragraph (a), by removing the phrase ``live animals imported

into or entering the United States'' and adding ``live animals

presented for importation into or entry into the United States'' in its

place.

c. In paragraph (a), by revising the table to read as set forth

below.

Sec. 130.6 User fees for import or entry services for live animals at

land border ports along the United States-Mexico border.

(a) * * *

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

User

fee

Type of live animal (per

head)

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

Feeder......................................................... $1.75

Slaughter...................................................... 2.50

Horses, other than slaughter................................... 29.25

In-bond or in transit.......................................... 3.75

Any ruminants not covered above................................ 6.00

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

* * * * *

8. Section 130.7 is amended as follows:

a. In paragraph (a), by removing ``$16.00'' and adding ``$16.50''

in its place.

b. In paragraph (a), by removing the phrase ``live animals imported

into or entering the United States'' and adding ``live animals

presented for importation into or entry into the United States'' in its

place.

c. In paragraph (a), by revising the table to read as set forth

below:

Sec. 130.7 User fees for import or entry services for live animals at

all other ports of entry.

(a) * * *

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

Type of live animal User fee

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

Animals being imported into the United

States:

Horses, other than slaughter and in transit. $19.00 per head.

Breeding animals (Grade animals, except ..........................

horses):

Swine................................... 0.50 per head.

Sheep and goats........................ 0.50 per head.

All others.............................. 2.25 per head.

Registered animals, all types............... 4.00 per head.

Feeder animals: ..........................

Cattle (not including calves)........... 1.00 per head.

Swine................................... 0.25 per head.

Sheep and calves........................ 0.25 per head.

Slaughter animals, all types................ 16.50 per load.

Poultry (including eggs), imported for any 33.00 per load.

purpose.

Animals transiting\1\ the United States:

Cattle.................................. 1.00 per head.

Swine................................... 0.25 per head.

Sheep and goats......................... 0.25 per head.

[[Page 20434]]

Horses and all other animals............ 4.50 per head.

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

\1\ The user fee in this section will be charged for intransit

authorizations at the port where the authorization services are

performed. For additional services provided by APHIS, at any port, the

applicable hourly user fee will apply.

* * * * *

9. In Sec. 130.8, paragraph (a) is amended by revising the table to

read as follows:

Sec. 130.8 User fees for other services.

(a) * * *

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

Service User fee

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

Inspection for approval of slaughter

establishment:

Initial approval............................ $246.50 for all

inspections required

during the year.

Renewal..................................... 213.50 for all

inspections required

during the year.

Pet birds, except pet birds of U.S. origin

entering the United States from Canada:

Which have been out of United States more 169.75 per lot.

than 60 days.

Which have been out of United States 60 days 71.25 per lot.

or less.

Germ Plasm Being imported: \1\

Semen....................................... 39.50 per load.

Embryo...................................... 39.50 per load.

Germ Plasm Being exported: \2\

Semen....................................... 33.50 per certificate.

Embryo (up to 5 donor pairs)................ 54.75 per certificate.

Embryo (each additional group of donor 24.75 per group of

pairs, up to 5 pairs per group, on the same donor pairs.

certificate).

Processing VS form 16-3, ``Application for

Permit to Import Controlled Material/Import or

Transport Organisms or Vectors'':

For permit to import fetal bovine serum when 208.50 per

facility inspection is required. application.

For all other permits....................... 27.50 per application.

Amended application......................... 11.50 per amended

application.

Application renewal......................... 15.00 per application.

Fetal Bovine Serum sample verification.......... 666.00 per

verification.

Import compliance assistance.................... 24.00 per release.

Release from export agricultural hold........... 24.00 per release.

Inspection of approved establishments,

warehouses, and facilities under 9 CFR parts 94

through 96:

Approval (Compliance Agreement)............. 262.75 for first year

of 3-year approval

(for all inspections

required during the

year).

Renewed approval............................ 152.00 per year for

second and third

years of 3-year

approval (for all

inspections required

during the year).

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

\1\ For inspection of empty containers being imported into the United

States, the applicable hourly user fee would apply, unless a user fee

has been assessed under 7 CFR part 354.3.

\2\ This user fee includes a single inspection and resealing of the

container at the APHIS employee's regular tour of duty station or at a

limited port. For each subsequent inspection and resealing required,

the applicable hourly user fee would apply.

* * * * *

10. Section 130.9 is amended as follows:

a. In paragraph (a), introductory text, by removing ``$50'' and

adding ``$56'' in its place, and by removing ``$12.50'' and adding

``$14.00'' in its place.

b. In paragraph (a), introductory text, by removing ``$16.00'' and

adding ``$16.50, for each employee required to perform the service'' in

its place.

c. By revising paragraph (b) to read as set forth below.

Sec. 130.9 User fees for miscellaneous import or entry services.

* * * * *

(b) If a service must be conducted on a Sunday or holiday or at any

other time outside the normal tour of duty of the employee, then the

premium user fee rate, as provided for in 9 CFR part 97, in lieu of the

user fee listed in paragraph (a) of this section, must be paid for each

employee required to perform each service:

(1) $65.00 per hour for weekdays and holidays;

(2) $16.25 per quarter-hour for weekdays and holidays;

(3) $74.00 per hour for Sundays;

(4) $18.50 per quarter-hour for Sundays;

(5) With a minimum of $16.50.

* * * * *

11. In Sec. 130.50(b)(1), footnote 8 and the reference to it are

redesignated as footnote 9, and in Sec. 130.20(a), footnote 7 and the

reference to it, are redesignated as footnote 8.

12. A new Sec. 130.10 is added to read as follows:

Sec. 130.10 User fees for pet birds quarantined at APHIS-owned or

supervised quarantine facilities.

(a) The person for whom the service is provided and the person

requesting the service are jointly and severally liable for the

following user fees, which include standard care, feed, and

[[Page 20435]]

handling, and which must be paid for each animal or bird quarantined in

an Animal Import Center 7 or other APHIS owned or supervised

quarantine facility:

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

\7\ APHIS Animal Import Centers are located in Honolulu, HI,

Miami, FL, and Newburgh, NY. The addresses of these facilities are

published in part 92 of this chapter.

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

Daily

Number of birds is isolette user

fee

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

1.............................................................. $6.50

2.............................................................. 7.75

3.............................................................. 9.25

4.............................................................. 10.75

5.............................................................. 12.00

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

(b) Based on the information provided to APHIS personnel, APHIS

personnel at the Animal Import Center or other APHIS owned or

supervised quarantine facility will determine the appropriate number of

birds that should be housed per isolette.

(c) If the person or persons for whom the service is provided or

the person or persons requesting the service request additional

services on an hourly basis, the user fees for each employee required

to perform the service are:

(1) $56.00 per hour;

(2) $14.00 per quarter-hour;

(3) With a minimum of $16.50.

(Approved by the Office of Management and Budget under control

number 0579-0094.)

13. Section 130.14 is amended as follows:

a. By revising the section heading to read as set forth below.

b. In paragraph (a), after the term ``NVSL'', by adding the phrase

``or at authorized import sites (excluding FADDL)''.

c. In paragraph (a), by revising the text of footnote 1 to the

table to read as set forth below.

d. By adding a new paragraph (c) to read as set forth below.

e. By adding at the end of the section the OMB control numbers as

set forth below.

Sec. 130.14 User fees for tests performed by the NVSL or at authorized

import sites (excluding FADDL).

(a) * * *

\1\ Tests with multiple and subsequent antigens can be set up

for a fraction of the cost of multiple single-antigen tests. Tests

subsequent to the first antigen used for these assays are reduced

down to 20% of the cost of using the first antigen. The following

are examples of these cost savings: complement fixation (CF) tests

for equine encephalomyelitis or vesicular stomatitis;

hemagglutination inhibition (HI) for equine encephalomyelitis or

equine influenza; virus neutralization (VN) tests for porcine

respiratory and reproductive syndrome. For example, for CF tests for

eastern equine encephalomyelitis (EEE), western equine

encephalomyelitis (WEE), and Venezuelan equine encephalomyelitis

(VEE) and for VN tests for the New Jersey and Indiana serovars of

vesicular stomatitis (VS), the costs are as follows: EEE--$9.00, WEE

and VEE--$2.00 each; VS New Jersey--$7.50, VS Indiana--$1.50. The

total of these five assays is $22.00 for each specimen submitted.

* * * * *

(c) The user fees in this section do not include any costs that may

be incurred due to special mail handling, such as express, overnight,

or foreign mailing. If a test requires special mail handling, all costs

incurred must be paid by the user as specified in paragraph (a) of this

section, in addition to the user fee listed in paragraph (a) of this

section.

(Approved by the Office of Management and Budget under control

numbers 0579-0055 and 0579-0094.)

14. Section 130.15 is amended as follows:

a. In paragraph (a), by revising the text of footnote 1 to the

table to read as set forth below.

b. By adding a new paragraph (c) to read as set forth below.

c. By adding at the end of the section the OMB control numbers as

set forth below.

Sec. 130.15 User fees for tests performed at FADDL.

(a) * * *

\1\ Tests with multiple and subsequent antigens can be set up

for a fraction of the cost of multiple single-antigen tests. Tests

subsequent to the first antigen used for these assays are reduced

down to 20% of the cost of using the first antigen. The following

assays are examples of these cost savings: complement fixation (CF)

tests for foot-and-mouth disease or vesicular stomatitis; virus

neutralization (VN) tests for foot-and-mouth disease or vesicular

stomatitis. For example, for CF and VN tests for foot-and-mouth

disease A, O, and C antigens, the costs are as follows: CF A

antigen--$30.50, O antigen--$6.25, and C antigen--$6.25; VN A

antigen--$22.00, O antigen--$4.50, and C antigen--$4.50. The total

of these six assays is $74.00 for each specimen tested for these

agents.

* * * * *

(c) The user fees in this section do not include any costs that may

be incurred due to special mail handling, such as express, overnight,

or foreign mailing. If a test requires special mail handling, all costs

incurred must be paid by the user as specified in paragraph (a) of this

section in addition to the user fee listed in paragraph (a) of this

section.

(Approved by the Office of Management and Budget under control

numbers 0579-0055 and 0579-0094.)

15. Section 130.16 is amended as follows:

a. In paragraph (a), in the table, by revising the entry for

``Virus isolation'' and by adding a new test in alphabetical order to

read as set forth below.

b. By adding a new paragraph (c) to read as set forth below.

c. By adding at the end of the section the OMB control numbers as

set forth below.

Sec. 130.16 User fees for reference assistance testing.

(a) * * *

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

User

Test fee

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

* * * * *

(3) Other tests:

* * * * *

Virus isolation (except Newcastle disease virus)............... 29.75

Virus isolation for Newcastle disease virus.................... 14.00

* * * * *

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

* * * * *

(c) The user fees in this section do not include any costs that may

be incurred due to special mail handling, such as express, overnight,

or foreign mailing. If a test requires special mail handling, all costs

incurred must be paid by the user as specified in paragraph (a) of this

section in addition to the user fee listed in paragraph (a) of this

section.

(Approved by the Office of Management and Budget under control

numbers 0579-0055 and 0579-0094.)

16. Section 130.17 is amended as follows:

a. In paragraph (a), in the table, in the entry for Johnin: OT,

under the Unit (ml.) column, by removing ``10'' and adding ``2'' in its

place.

b. By adding a new paragraph (c) to read as set forth below.

c. By adding at the end of the section the OMB control number as

set forth below.

Sec. 130.17 User fees for diagnostic reagents, slide sets, and tissue

sets.

* * * * *

(c) The user fees in this section do not include any costs that may

be incurred due to special mail handling, such as express, overnight,

or foreign mailing. If a test requires special mail handling, all costs

incurred must be paid by the user as specified in paragraph (a) of this

section in addition to the user fee listed in paragraph (a) of this

section.

(Approved by the Office of Management and Budget under control

number 0579-0094.)

[[Page 20436]]

17. Section 130.18 is amended as follows:

a. By redesignating the existing text as paragraph (a).

b. By adding a new paragraph (b) to read as set forth below.

c. By adding at the end of the section the OMB control number as

set forth below.

Sec. 130.18 User fees for sterilization by gamma radiation.

(a) * * *

(b) The user fees in this section do not include any costs that may

be incurred due to special mail handling, such as express, overnight,

or foreign mailing. If a test requires special mail handling, all costs

incurred must be paid by the user as specified in paragraph (a) of this

section in addition to the user fee listed in paragraph (a) of this

section.

(Approved by the Office of Management and Budget under control

number 0579-0094.)

18. Section 130.20 is amended as follows:

a. By revising paragraph (a) to read as set forth below.

b. By revising (b)(1) to read as set forth below.

c. In paragraph (c), by removing the words ``it is endorsed'' and

by adding the phrase ``the export health certificate is prepared for

endorsement completely at the site of the inspection'' in their place.

d. In paragraph (c), by removing the reference ``Sec. 130.7'' and

adding ``Sec. 130.21'' in its place.

e. By redesignating paragraph (d) as paragraph (e) and adding a new

paragraph (d) to read as set forth below.

Sec. 130.20 User fees for endorsing export health certificates.

(a) All user fees in this paragraph are for services provided for

the endorsement of export health certificates which do not require the

verification of tests or vaccinations. The person for whom the service

is provided and the person requesting the service are jointly and

severally liable for paying the following user fees for each export

health certificate \8\ endorsed for the following types of animals,

birds, or animal products, regardless of the number of animals, birds,

or animal products covered by the certificate.

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

\8\ An export health certificate may need to be endorsed for an

animal being exported from the United States if the country to which

the animal is being shipped requires one. APHIS endorses export

health certificates as a service.

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

User

Certificate categories fee

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

Slaughter animals, of any type, moving to Canada or Mexico..... $24.50

Nonslaughter horses to Canada.................................. 26.25

Poultry........................................................ 21.00

Hatching eggs.................................................. 21.00

Animal products................................................ 21.50

Other endorsements or certifications........................... 16.50

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(b)(1) All user fees in this paragraph are for services provided

for the endorsement of export health certificates which require the

verification of tests or vaccinations. The person for whom the service

is provided and the person requesting the service are jointly and

severally liable for paying the following user fees for each export

health certificate endorsed for animals and birds, depending on the

number of animals covered by the certificate and the number of tests

required.

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Number of animals or

Number of tests/vaccinations birds on certificate User fee

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1-2.................................. First animal........... $52.50

Each additional animal. 3.00

3-6.................................. First animal........... 64.75

Each additional animal. 5.00

7 or more............................ First animal........... 75.75

Each additional animal. 6.00

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* * * * *

(d) The user fees prescribed in this section will not apply if a

requested export health certificate is not endorsed by a designated

APHIS employee. The minimum user fee of $16.50 will be charged for each

export health certificate that is requested and reviewed, but not

endorsed.

* * * * *

19. Section 130.21 is amended as follows:

a. By revising paragraphs (a)(1) through (a)(5) to read as set

forth below.

b. By adding new paragraphs (a)(6) and (a)(7) to read as set forth

below.

c. In paragraph (b) introductory text, before the colon, by adding

the phrase ``charged per each employee required to perform the

service''.

d. In paragraph (b)(1), by removing ``$50'' and adding ``$56'' in

its place.

e. In paragraph (b)(2), by removing the figure ``$12.50'' and

adding ``$14.00'' in its place.

f. In paragraph (b)(3), by removing the figure ``$16.00'' and

adding ``$16.50'' in its place.

g. By revising paragraph (c) to read as set forth below.

Sec. 130.21 User fees for inspection and supervision services provided

within the United States for export animals, birds, and animal products

and byproducts.

(a) * * *

(1) Inspecting an export isolation facility and the animals in it;

(2) Supervising animal or bird rest periods prior to export;

(3) Supervising loading or unloading of animals or birds for export

shipment;

(4) Inspecting means of conveyance used to export animals or birds;

(5) Conducting inspections under authority of part 156 of this

chapter;

(6) Approving or inspecting an embryo or semen collection center or

the animals in it; and

(7) Other export or embarkation services not specified elsewhere in

this part.

* * * * *

(c) If a service must be conducted on a Sunday or holiday or at any

other time outside the normal tour of duty of the employee, then the

premium user fee rate, as provided for in 9 CFR part 97, in lieu of the

user fee listed in paragraph (b) of this section, must be paid for each

employee required to perform each service:

(1) $65.00 per hour for weekdays and holidays;

(2) $16.25 per quarter-hour for weekdays and holidays;

(3) $74.00 per hour for Sundays;

(4) $18.50 per quarter-hour for Sundays;

(5) With a minimum of $16.50.

* * * * *

20. Section 130.50 is amended as follows:

a. In paragraph (b)(1), newly designated footnote 9 is revised to

read as set forth below.

b. In paragraph (b)(2), immediately before the semi-colon, by

adding ``drawn on a U.S. bank in U.S. dollars and made payable to the

U.S. Department of Agriculture or USDA''.

c. In paragraph (b)(3), immediately before the semi-colon, by

adding ``drawn on a U.S. bank in U.S. dollars and made payable to the

U.S. Department of Agriculture or USDA''.

d. By revising paragraph (b)(4) to read as set forth below.

Sec. 130.50 Payment of user fees.

* * * * *

(b) * * *

(4) Credit cards (VISATM or MasterCardTM) if payment is

made at an Animal Import Center or an APHIS office that is equipped to

process credit cards.\9\

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\9\ A list of Animal Import Centers and APHIS offices that

accept cash or credit cards may be obtained from the Animal and

Plant Health Inspection Service, Veterinary Services, National

Center for Import and Export, 4700 River Road Unit 38, Riverdale, MD

20737-1231.

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[[Page 20437]]

* * * * *

Done in Washington, DC, this 1st day of May 1996.

Terry L. Medley,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 96-11211 Filed 5-6-96; 8:45 am]

BILLING CODE 3410-34-P