Fees for Official Inspection and Official Weighing Services

SUMMARY: The Federal Grain Inspection Service (FGIS), of the Grain

Inspection, Packers and Stockyards Administration (GIPSA), is changing

the way it collects user fees for official inspection and weighing

services performed in the United States under the United States Grain

Standards Act (USGSA), as amended. The new fee structure establishes

fees for specific services using hourly rates and/or unit fees. This

structure provides customers with information to better assess the cost

of specific services, and allows FGIS to pass savings (in the form of

fewer billable hours) to customers who invest in operational

efficiencies. The new fee structure includes a 4 percent increase to

recover salary increases.

EFFECTIVE DATE: October 1, 1996.

FOR FURTHER INFORMATION CONTACT: George Wollam, USDA, GIPSA, Room 0623

South Building, STOP 3649, 1400 Independence Avenue, SW, Washington, DC

20250-3649, or telephone (202) 720-0292.

SUPPLEMENTARY INFORMATION:

Executive Order 12866 and Regulatory Flexibility Act

This 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.

The change in the way user fees are collected provides customers

with information to better assess the costs of specific inspection

services because the fees will be more service specific than under the

current hourly rate. Further, it allows savings to be passed on to

users of the service who invest in operational efficiencies. Currently,

applicants choose only those services they want, but individual service

costs are supported by hourly rates without segregation. Fiscal year

1993 financial and volume data were used in developing the new fee

structure. While certain fees are increased and new fees are

established, the revenue generated using fiscal year 1993 data is

equivalent to the $23,192,178 collected that year.

The new fee structure does include a 4 percent increase to recover

salary increases since 1993, and would have generated sufficient

revenue to cover costs for fiscal year 1994 and the costs for fiscal

year 1995. For information, fiscal year 1994 revenues were $20,662,062

with obligations of $21,415,400. For fiscal year 1995, revenues were

$23,382,253 with obligations of $24,015,289, and for the first half of

fiscal year 1996 revenues were $1,924,516 with obligations of

$1,916,609. Obligations include buyout costs, along with costs

associated with office consolidations.

Presently, users of the inspection service are charged on an hourly

basis. This hourly rate includes the salary and benefits for each

service representative providing the service, as well as a portion of

overhead and program support costs. The overall cost of a wide variety

of services, e.g., grading, weighing, wheat protein measurement,

soybean protein and oil measurement, and aflatoxin detection, are

averaged together and recovered through an hourly service rate. Under

the new system, customers will be charged a lower base hourly rate plus

a unit fee to cover the cost of the specific service they request, such

as wheat protein. Overhead and program costs will be recovered through

a per-metric-ton volume fee assessed on all grain loaded from a

facility.

This rule may have an economic impact on infrequent users of the

service. FGIS incurs difficulty balancing costs and revenue in some

locations where customers desire local FGIS service capacity but use

the service infrequently. The new fee schedule is designed to shift the

cost of non-revenue producing time to those users responsible for

incurring it. Consequently, infrequent users of the service may find

the net effect of the new hourly fees and per-metric-ton administrative

fee increases their total per-metric-ton cost for inspection service.

Conversely, highly efficient and/or high-volume users of the service

may realize a decrease in their per-metric-ton cost for inspection

service due to the reduced contract hourly rate and the use of an

administrative fee to cover overhead and program support expenses.

Most users of the official inspection and weighing services do not

meet the requirements for small entities. Further, FGIS is required by

statute to make services available and to recover costs of providing

such services as nearly as practicable. Therefore, James R. Baker,

Administrator, GIPSA, has determined that this final rule does not have

a significant economic impact on a substantial number of small entities

as defined in the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

Executive Order 12778

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. This action does not have a retroactive effect.

The USGSA provides in Sec. 87g that no subdivision may require or

impose any requirements or restrictions concerning the inspection,

weighing, or description of grain under the Act. Otherwise, this final

rule does not preempt any State or local laws, regulations, or policies

unless they present irreconcilable conflict with this rule. There are

no administrative procedures which must be exhausted prior to any

judicial challenge to provisions of this rule.

Information Collection and Recordkeeping Requirements

In compliance with the Paperwork Reduction Act (44 U.S.C. Chapter

3504), the previously approved information collection and recordkeeping

requirements concerning applications for inspection and weighing

services have been approved by the Office of Management and Budget

under control number 0580-0013.

[[Page 43302]]

Background

On November 30, 1995, FGIS proposed in the Federal Register (60 FR

61499) to change the way it collects user fees for official inspection

and weighing services performed under the USGSA.

The USGSA fees for inspection and weighing services were last

increased and became effective on May 20, 1991 (56 FR 15803).

Currently, they appear in 7 CFR Sec. 800.71, Schedule A, Fees for

Official Inspection, Weighing, and Appeal Inspection Services Performed

in the United States.

FGIS is revising Sec. 800.71, Schedule A--Fees for Official

Inspection, Weighing, and Appeal Inspection Services Performed in the

United States. Instead of one schedule covering all services, there are

now three new tables. The new tables are: Table 1, ``Fees for Official

Services Performed at an Applicant's Facility in an Onsite FGIS

Laboratory;'' Table 2, ``Services Performed at Other Than an

Applicant's Facility in an FGIS Laboratory;'' and Table 3,

``Miscellaneous Services.''

Schedule A, Table 1. This table covers all services performed

onsite at an applicant's facility and continues the existing provision

for using contract and noncontract hourly rates. The hourly rates are

calculated to include only those costs directly related to labor and do

not include overhead. The current 1 year contract is retained, but

provisions are included for 3- and 6-month contracts. FGIS will

evaluate the use of 3- and 6-month contracts after 1-year to determine

if they shall be continued. The rate differences between 1-year, 6-

month, and 3-month contracts reflect the costs associated with

increased staff production under a contract.

1. Hourly Rates

The new hourly rates are divided into four categories related to

how FGIS employees are paid: regular time (6 a.m. to 6 p.m.), 10

percent night differential (6 p.m. to 6 a.m.), overtime at 1\1/2\ the

regular hourly rate (for applicant-caused or requested overtime), and

holiday rates at double the regular hourly rate (all hourly rates other

than those of regular time are calculated using only the average base

hourly rate; this does not include personnel benefits).

2. Additional Tests

Additional unit fees for certain tests such as Aflatoxin,

Vomitoxin, Soybean protein and/or oil, Sunflower oil, Wheat protein,

Waxy corn, and Class Y weighing are implemented. These fees will

recover additional costs incurred such as testing materials, equipment,

and hazardous waste disposal which are not recovered through the hourly

fee or administrative fee.

3. Administrative Fee

A per-metric-ton administrative charge is implemented to recover

the indirect costs of FGIS field offices and headquarters such as the

salaries and benefits for office management and support staff, and

rent. This charge is assessed on all outbound grain inspected and/or

weighed at an applicant's facility. Six levels of fees are implemented

ranging from 1 metric ton or less to over 7,000,001 metric tons with

fees decreasing as the number of metric tons inspected increases. The

charge is assessed in addition to the base hourly rate. At the

beginning of each fiscal year (October 1), all applicants pay the same

per-metric-ton fee. Once a level has been reached, the fee for

additional metric tons is reduced until the maximum volume level is

reached. Inspections performed on grain that cannot be captured as part

of the metric ton charge has a unit fee assessed in addition to the

hourly rate to recover overhead costs. Inspections such as submitted

samples, factor only, and sacked grain are included.

Schedule A, Table 2, covers fees for inspection and weighing

services where FGIS does not have an onsite laboratory at an

applicant's facility. The fees in this table are a mixture of hourly

rates and unit fees. They cover a vast array of specific services

presently provided under the current hourly rates. The hourly rates

applied in Table 2 are the appropriate rates from Table 1, unless

specific hourly rates are identified. Unit fees cover the time required

to perform the service plus a portion for overhead. The types of

service provided under these fees include inspection for grade and

factor for specific carriers probe sampled or sampled online,

additional services and testing (i.e., individual tests), Board appeals

and appeals, weighing (Class X and Y), and stowage examinations.

Schedule A, Table 3, provides fees to cover a variety of services

not included in the previous tables. As with Table 2, the change in the

fee structure from an hourly fee that recovers all costs to a service-

specific fee structure requires a listing of specific services

currently funded by the hourly rate. These service-specific fees are a

mixture of hourly rates and unit fees and apply to Grain Grading

Seminars, Certification of Diverter Samplers, Special Services, Scale

Testing and Certification, Evaluation of Weighing and Material Handling

Systems, National Type Evaluation Program (NTEP) Prototype Evaluation

(this hourly rate applies to scales, moisture meters and NIR

analyzers), NTEP Prototype Evaluation of Railroad Track Scales, Mass

Standards Calibration and Reverification, Special Projects, Foreign

Travel, Online Customized Data Export Grain Information System (EGIS)

Service, Samples Provided to Interested Parties, Divided-Lot

Certificates, Extra Copies of Certificates, Faxing, Special Mailing,

and Preparing Certificates Onsite.

Further, FGIS is establishing a unit fee to recover expenses

incurred when FGIS employees are requested to provide consulting

services outside the United States. Currently, there is no fee for

recovering costs of salary, travel, per diem, and related costs which

is not related to an official service provided on a shipment of grain

at the time of export from the United States. For example, an exporter

may ask for an FGIS microbiologist to consult with microbiologists in

an importing country to resolve adispute on the presence of grain

fungi; or a USDA cooperator may request an FGIS inspector to conduct

training for inspectors in an importing country.

FGIS is also changing Secs. 800.72 and 800.73 of the regulations to

further clarify the application of fees covered in Schedule A.

Specifically, service provided under Schedule A covers service provided

within 25 miles of the employee's assigned duty point. Travel, per

diem, and other related costs are assessed for providing service beyond

the 25-mile limit. A minimum fee is established for services identified

in Table 2 performed outside of normal business hours Monday through

Friday.

Comment Review

FGIS received four comments during the 60-day comment period. Two

comments were from grain handling trade associations, one from a State,

and one from a steamship association. Both comments from the grain

handling trade associations were generally supportive of the proposed

rule; however, one commented that under the current hourly fees FGIS

field office managers are encouraged to assign more employees to a

shift than may be prudent. The commentor went on to say that the

proposed fee structure does promote a more fair allocation of costs,

but does not go far enough to reduce direct labor costs through job

consolidation or by assigning supervisory personnel collateral duty for

performing additional tests in those situations where the shift

supervisor or journeyman grader are qualified or capable of doing the

additional test.

[[Page 43303]]

FGIS does not agree that its field office managers are over

staffing shifts under the current hourly fees. FGIS further believes

that direct labor costs will be reduced through the new lower hourly

rate fee structure which includes a lower hourly rate for online

supervisory personnel and the recovery of overhead through a per-

metric-ton administrative fee. FGIS does utilize its inspection

personnel to their maximum potential.

The comment from the State was entirely supportive and encouraged

FGIS to adopt a unit fee for direct services provided to the industry

with minimum hourly rates.

The comment from the steamship association requested that FGIS

maintain the current hourly rate with a small increase, that FGIS

increase the number of hours and personnel available for stowage

examinations, and that stowage examinations and stowage re-examinations

will cost more to the steamship line if the inspections are done in

different parts of the country.

FGIS has determined that changing the way it collects fees from an

hourly rate to a combination of reduced hourly rates and unit fees is

the most equitable way to recover its costs and provide the grain

industry quality service. FGIS agrees re-examining ship holds will cost

more to the steamship line if the inspections are done in different

parts of the country. Therefore, FGIS is modifying the provisions for

charging for stowage examinations when the initial examination was

performed at a different port. FGIS will not charge the minimum fee and

will charge the per hold charge if the ship has moved from one port to

another.

While the comment concerning FGIS increasing the hours and

personnel available for inspection is not within the scope of this

rulemaking, we do note that stowage examination is conducted generally

during daylight hours.

Withdrawal of Interim Final Rule

On January 8, 1993 (58 FR 3213), FGIS published an interim rule,

which would have implemented fee increases for official inspection and

weighing services, effective February 1, 1993. On January 21, 1993,

FGIS published in the Federal Register, a document indefinitely

postponing the fee increase. This action withdraws the interim final

rule published at 58 FR 3213.

October 1, 1996, Effective Date

The changes to the fee schedules made in this final rule are

effective October 1, 1996. That date corresponds to the beginning of

the 1997 fiscal year and the start of a new accounting cycle.

List of Subjects in 7 CFR Part 800

Administrative practice and procedure; Grain.

For the reasons set out in the preamble, 7 CFR Part 800 is amended

as follows:

PART 800--GENERAL REGULATIONS

1. The authority citation for Part 800 continues to read as

follows:

Authority: Pub. L. 94-582, 90 Stat. 2867, as amended (7 U.S.C.

71 et seq.)

2. Section 800.71 is amended by revising Schedule A to read as

follows:

Sec. 800.71 Fees assessed by the Service.

(a) * * *

Schedule A.--Fees for Official Inspection and Weighing Services

Performed in the United States

Table 1.--Fees for Official Services Performed at an Applicant's Facility in an Onsite FGIS Laboratory \1\

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

Monday to Monday to

Friday (6 Friday (6 Saturday,

a.m. to 6 p.m. to 6 Sunday, and Holidays

p.m.) a.m.) Overtime

--------------------------------------------------------------------------------------------\2\-----------------

(1) Inspection and Weighing Services Hourly Rates (per service representative)

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

1-year contract............................................. $23.00 $24.80 $32.40 $39.00

6-month contract............................................ 25.00 26.80 34.40 43.60

3-month contract............................................ 28.00 29.80 37.40 46.60

Noncontract................................................. 33.00 35.00 42.80 52.60

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

(2) Additional Tests (cost per test, assessed in addition to the hourly

rate) \3\

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

(i) Aflatoxin (other than Thin Layer Chromatography)........... $8.50

(ii) Aflatoxin (Thin Layer Chromatography method).............. 20.00

(iii) Soybean protein and oil (one or both).................... 1.50

(iv) Wheat protein (per test).................................. 1.50

(v) Sunflower oil (per test)................................... 1.50

(vi) Vomitoxin (qualitative)................................... 7.50

(vii) Vomitoxin (quantitative)................................. 12.50

(viii) Waxy corn (per test).................................... 1.50

(ix) Fees for other tests not listed above will be based on the

lowest noncontract hourly rate.

(x) Other services

(a) Class Y Weighing (per carrier).........................

(1) Truck/container.................................... .30

(2) Railcar............................................ 1.25

(3) Barge.............................................. 2.50

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

(3) Administrative Fee (assessed in addition to all other applicable

fees, only one administrative fee will be assessed when inspection and

weighing services are performed on the same carrier).

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

(i) All outbound carriers (per-metric-ton) \4\

(a) 1-1,000,000............................................ $0.090

(b) 1,000,001-1,500,000.................................... 0.082

(c) 1,500,001-2,000,000.................................... 0.042

(d) 2,000,001-5,000,000.................................... 0.032

(e) 5,000,001-7,000,000.................................... 0.017

[[Page 43304]]

(f) 7,000,001-............................................. 0.002

(ii) Additional services (assessed in addition to all other

fees) \3\

(a) Submitted sample (per sample-grade and factor)......... 1.50

(b) Submitted sample--Factor only (per factor)............. 0.70

\1\ Fees apply for original inspection and weighing, reinspection, and

appeal inspection service include, but are not limited to, sampling,

grading, weighing, prior to loading stowage examinations, and

certifying results performed within 25 miles of an employee's assigned

duty station. Travel and related expenses will be charged for service

outside 25 miles as found in Sec. 800.72(a).

\2\ Overtime rates will be assessed for all hours in excess of 8

consecutive hours that result from an applicant scheduling or

requesting service beyond 8 hours, or if requests for additional

shifts exceed existing staffing.

\3\ Appeal and reinspection services will be assessed the same fee as

the original inspection service.

\4\ The administrative fee is assessed on an accumulated basis beginning

at the start of the Service's fiscal year (October 1 each year).

Table 2.--Services Performed at Other Than an Applicant's Facility in an

FGIS Laboratory \1\ \2\

(1) Original Inspection and Weighing (Class X) Services

(i) Sampling only (use hourly rates from Table 1)

(ii) Stationary lots (sampling, grade/factor, and

checkloading)

(a) Truck/trailer/container (per carrier).............. $17.60

(b) Railcar (per carrier).............................. $27.00

(c) Barge (per carrier)................................ $173.60

(d) Sacked grain (per hour per service representative

plus an administrative fee per hundredweight) (CWT)... $0.02

(iii) Lots sampled online during loading (sampling charge

under (i) above plus)

(a) Truck/trailer container (per carrier).............. $9.40

(b) Railcar (per carrier).............................. $18.80

(c) Barge (per carrier)................................ $107.60

(d) Sacked grain (per hour per service representative

plus an administrative fee per hundredweight) (CWT)... $0.02

(iv) Other services

(a) Submitted sample (per sample--grade and factor).... $10.00

(b) Warehouseman inspection (per sample)............... $17.00

(c) Factor only (per factor--maximum 2 factors)........ $4.10

(d) Checkloading/condition examination (use hourly

rates from Table 1, plus an administrative fee per

hundredweight if not previously assessed) (CWT)....... $0.02

(e) Reinspection (grade and factor only. Sampling

service additional, item (i) above.................... $11.00

(f) Class X Weighing (per hour per service

representative)....................................... $43.60

(v) Additional tests (excludes sampling)

(a) Aflatoxin (per test--other than TLC method)........ $25.00

(b) Aflatoxin (per test--TLC method)................... $100.50

(c) Soybean protein and oil (one or both).............. $7.80

(d) Wheat protein (per test)........................... $7.80

(e) Sunflower oil (per test)........................... $7.80

(f) Vomitoxin (qualitative)............................ $25.00

(g) Vomitoxin (quantitative)........................... $30.00

(h) Waxy corn (per test)............................... $9.00

(i) Canola (per test--00 dip test) $9.00

(j) Pesticide Residue Testing \3\

(1) Routine Compounds (per sample)................... $200.00

(2) Special Compounds (per service representative)... $100.00

(k) Fees for other tests not listed above will be based on

the lowest noncontract hourly rate from Table 1.

(2) Appeal inspection and review of weighing service.\4\

(i) Board Appeals and Appeals (grade and factor)........... $74.60

(a) Factor only (per factor--max 2 factors)............ $38.00

(b) Sampling service for Appeals additional (hourly

rates from Table 1)...................................

(ii) Additional tests (assessed in addition to all other

applicable fees)

(a) Aflatoxin (per test, other than TLC)............... $25.00

(b) Aflatoxin (TLC).................................... $110.00

(c) Soybean protein and oil (one or both).............. $15.30

(d) Wheat protein (per test)........................... $15.30

(e) Sunflower oil (per test)........................... $15.30

(f) Vomitoxin (per test--qualitative).................. $35.00

(g) Vomitoxin (per test--quantitative)................. $40.00

(h) Vomitoxin (per test--HPLC Board Appeal)............ $125.70

(i) Pesticide Residue Testing \3\..........................

(1) Routine Compounds (per sample)..................... $200.00

(2) Special Compounds (per service representative)..... $100.00

(j) Fees for other tests not listed above will be based

on the lowest noncontract hourly rate from Table 1.

(iii) Review of weighing (per hour per service

representative)........................................... $63.50

(3) Stowage examination (service-on- request)\3\

(i) Ship (per stowage space) (minimum $250 per ship)....... $50.00

(ii) Subsequent ship examinations (same as original)\5\

(minimum $150 per ship)

(iii) Barge (per examination).......................... $40.00

(iv) All other carriers (per examination).............. $15.00

\1\ Fees apply for original inspection and weighing, reinspection, and

appeal inspection service include, but are not limited to, sampling,

grading, weighing, prior to loading stowage examinations, and

certifying results performed within 25 miles of an employee's assigned

duty station. Travel and related expenses will be charged for service

outside 25 miles are found in Sec. 800.72 (a).

\2\ An additional charge will be assessed when the revenue from the

services in Schedule A, Table 2, does not cover what would have been

collected at the applicable hourly rate as provided in Sec. 800.72

(b).

\3\ If performed outside of normal business, 1\1/2\ times the applicable

unit fee will be charged.

\4\ If, at the request of the Service, a file sample is located and

forwarded by the Agency for an official appeal, the Agency may, upon

request, be reimbursed at the rate of $2.50 per sample by the Service.

\5\ If a ship has had, and passed, a stowage examination at one port

location but not loaded all holds examined, then moved to another port,

the subsequent stowage examination shall charged the minimum hold fee

but only the per hold unit charge.

Table 3.--Miscellaneous Services \1\

(1) Grain grading seminars (per hour per service

representative)............................................. $43.60

[[Page 43305]]

(2) Certification of diverter-type mechanical samplers (per

hour per service representative)............................ $43.60

(3) Special services (per hour per service representative):..

(i) Scale testing and certification...................... $43.60

(ii) Evaluation of weighing and material handling systems $43.60

(iii) NTEP Prototype evaluation (other than Railroad

Track Scales)........................................... $43.60

(iv) NTEP Prototype evaluation of Railroad Track Scales

(usage fee per day for test car)........................ $100.00

(v) Mass standards calibration and reverification........ $43.60

(vi) Special projects.................................... $43.60

(4) Foreign travel (per day per service representative)...... $416.00

(5) Online customized data EGIS service

(i) One data file per week for 1 year.................... $500.00

(ii) One data file per month for 1 year.................. $300.00

(6) Samples provided to interested parties (per sample)...... $2.50

(7) Divided-lot certificates (per certificate)............... $1.50

(8) Extra copies of certificates (per certificate)........... $1.50

(9) Faxing (per page)........................................ $1.50

(10) Special mailing (actual cost)...........................

(11) Preparing certificates onsite or during other than

normal business hours (use hourly rates from Table 1).

\1\ Any requested service that is not listed will be performed at the

applicable noncontract hourly rate.

\2\ Regular business hours-Monday thru Friday- service provided at other

than regular hours charged at the applicable overtime hourly rate.

* * * * *

3. Section 800.72 is revised to read as follows:

Sec. 800.72 Explanation of additional service fees for services

performed in the United States only.

(a) When transportation of the service representative to the

service location (at other than a specified duty point) is more than 25

miles from an FGIS office, the actual transportation cost in addition

to the applicable hourly rate for each service representative will be

assessed from the FGIS office to the service point and return. When

commercial modes of transportation (e.g., airplanes) are required, the

actual expense incurred for the round-trip travel will be assessed.

When services are provided to more than one applicant, the travel and

other related charges will be prorated between applicants.

(b) In addition to a 2-hour minimum charge for service on

Saturdays, Sundays, and holidays, an additional charge will be assessed

when the revenue from the services in Sec. 800.71, Schedule A, Table 2,

does not equal or exceed what would have been collected at the

applicable hourly rate. The additional charge will be the difference

between the actual unit fee revenue and the hourly fee revenue. Hours

accrued for travel and standby time shall apply in determining the

hours for the minimum fee.

4. Section 800.73 is revised to read as follows:

Sec. 800.73 Computation and payment of service fees; general fee

information.

(a) Computing hourly rates. The applicable hourly rate will be

assessed in quarter hour increments for:

(1) Travel from the FGIS field office or assigned duty station to

the service point and return;

(2) The performance of the requested service, less mealtime.

(b) Application of fees when service is delayed or dismissed by the

applicant. The applicable hourly rate will be assessed for the entire

period of scheduled service when:

(1) Service has been requested at a specified location;

(2) A service representative is on duty and ready to provide

service but is unable to do so because of a delay not caused by the

Service; and

(3 FGIS officials determine that the service representative cannot

be utilized to provide service elsewhere without cost to the Service.

(c) Application of fees when an application for service is

withdrawn or dismissed. The applicable hourly rate will be assessed to

the applicant for the entire period of scheduled service if the request

is withdrawn or dismissed after the service representative departs for

the service point, or if the service request is not canceled by 2 p.m.,

local time, the business day preceding the date of scheduled service.

However, the applicable hourly rate will not be assessed to the

applicant if FGIS officials determine that the service representative

can be utilized elsewhere or released without cost to the Service.

(d) To whom fees are assessed. Fees for inspection, weighing, and

related services performed by service representatives, including

additional fees as provided in Sec. 800.72, shall be assessed to and

paid by the applicant for the service.

(e) Monthly payment of administrative fee. At the option of the

applicant, an agreement for 12 equal monthly payments may be entered

into for payment of the administrative fee. These monthly payments will

be based on the previous fiscal year's volume applied to the current

year's administrative fee schedule. If the volume of grain inspected is

more than the amount of grain agreed upon at the beginning of the

fiscal year, at the point the agreed upon volume is exceeded, the

current year's administrative fee schedule shall apply to the remaining

amount of grain for the rest of the fiscal year. If the volume of grain

inspected is less than the agreed upon amount, any excess monies paid

to the Service shall be applied to the next fiscal year's

administrative fee unless a request for a refund is made by the

applicant.

(f) Advance payment. As necessary, the Administrator may require

that fees shall be paid in advance of the performance of the requested

service. Any fees paid in excess of the amount due shall be used to

offset future billings, unless a request for a refund is made by the

applicant.

(g) Form of payment. Bills for fees assessed under the regulations

in this part for official services performed by FGIS shall be paid by

check, draft, or money order, payable to the U.S. Department of

Agriculture, Grain Inspection, Packers and Stockyards Administration.

Dated: August 16, 1996.

Shirley Watkins,

Acting Assistant Secretary, Marketing and Regulatory Programs.

[FR Doc. 96-21391 Filed 8-21-96; 8:45 am]

BILLING CODE 3410-EN-P