Fees for Official Inspection and Official Weighing Services

DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 800

RIN 0580-AA52

Fees for Official Inspection and Official Weighing Services

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Proposed rule.

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

Inspection, Packers and Stockyards Administration (GIPSA) is proposing

an approximate 3 percent increase in certain of its service fees for

official inspection and weighing services performed in the United

States under the United States Grain Standards Act (USGSA), as amended.

The proposed increase covers hourly rates and certain unit rates on

tests performed at other than an applicant's facility. The proposed

increase is designed to generate additional revenue required to recover

operational costs created by mandated cost-of-living increases to

Federal salaries in fiscal year 1997.

DATE: Written comments must be submitted on or before May 28, 1997.

ADDRESSES: Written comments must be submitted to George Wollam, USDA,

GIPSA, ART, Stop 3649, Washington, D.C. 20250-3649, or FAX them to

(202) 720-4628. All comments received will be made available for public

inspection during regular business hours in Room 0623, South Building,

USDA, 1400 Independence Avenue, SW, Washington, D.C. 20250-3649 (7 CFR

1.27 (b)). Comments may also be sent by electronic mail or Internet to:

[email protected].

FOR FURTHER INFORMATION CONTACT: George Wollam at above address or

telephone (202) 720-0292.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be nonsignificant for the purpose

of Executive Order 12866 and, therefore, has not been reviewed by the

Office of Management and Budget.

Executive Order 12988

This proposed rule has been reviewed under Executive Order 12988,

Civil Justice Reform. This action is not intended to 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

proposed rule will not preempt any State or local laws, regulations, or

policies unless they present irreconcilable conflict with this proposed

rule. There are no administrative procedures which must be exhausted

prior to any judicial challenge to provisions of this proposed rule.

Effects on Small Entities

James R. Baker, Administrator, GIPSA, has determined that this

proposed rule will 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.). Most users of the official

inspection and weighing services do not meet the requirements for small

entities. FGIS is required by statute to make services available and to

recover costs of providing such services, as nearly as practicable.

The proposed fee revision is primarily applicable to entities

engaged in the export of grain. Under provisions of the USGSA, most

grain exported from U.S. export port locations must be officially

inspected and weighed. Mandatory inspection and weighing services are

provided by FGIS on a fee basis at 37 export facilities. All of the

export facilities are owned and managed by multi-national corporations,

large cooperatives, or public entities that do not meet the criteria

for small entities as defined under the Regulatory Flexibility Act and

the regulations issued thereunder. Some users of the service who

request non-mandatory official inspection and weighing services at

other than export locations could be considered small entities.

However, this fee increase merely reflects the cost-of-living increases

in Federal salaries for hourly and certain unit fees. The approximate

3-percent proposed increase in fees would not have a significant impact

on either small or large entities. Additional revenue estimated for

fiscal year 1997 are projected to be $218,100 for a total of $22.218

million in revenue projected for fiscal year 1997.

Information Collection and Recordkeeping Requirements

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

Chapter 35), the previously approved information collection and

recordkeeping requirements have been approved by the Office of

Management and Budget under control number 0580-0013.

Background

The USGSA requires FGIS to charge and collect reasonable fees for

performing official inspection and weighing services. The fees are to

cover, as nearly as practicable, FGIS' costs for performing these

services, including related administrative and supervisory costs.

The proposed approximate 3-percent increase in fees is designed to

generate additional revenue required to recover operational costs

created by mandated cost-of-living increases to Federal salaries for

GIPSA employees in fiscal year 1997. The average salary increase for

GIPSA employees in fiscal year 1997 is approximately 3 percent. The

proposed action is being taken immediately to increase fiscal year 1997

revenue to cover, in part, projected fiscal year 1997 operational

costs.

The current USGSA fees and were published in the Federal Register

on August 22, 1996 (61 FR 43301), and became effective on October 1,

1996. They will appear in the 1997 edition of 7 CFR 800.71, Schedule A,

Fees for Official Inspection and Weighing Services Performed in the

United States. The current fee schedule is projected to

[[Page 26253]]

generate approximately $22 million revenue for fiscal year 1997. This

revenue is insufficient to recover operating expenses in fiscal year

1997. This is 5.2 percent below estimated fiscal year 1997 costs of

$23.2 million. Similar losses have occurred over the past 3 years with

$753,000 in fiscal year 1994; $630,000 in fiscal year 1995; and

$1,273,000 in fiscal year 1996. These losses resulted in a retained

earnings balance of only $922,000 at the beginning of fiscal year 1997,

significantly below a desired 3-month operating reserve of $6 million.

With the fee increase, it is estimated that $218,100 in additional

revenue will be generated for fiscal year 1997. Total costs for fiscal

year 1997 are projected to be $23.2 million and revenues with the fee

increase for the last period of fiscal year 1997 are projected to be

$22.218 million.

A further adjustment of fees, including an adjustment to the per

metric ton administrative fee to recover the indirect costs of field

offices and headquarters and replenish the operating reserve, is being

considered and would be addressed in future rulemaking.

A 15-day comment period is deemed appropriate because projected

exports and the associated requests for official services for such

grain are projected to decrease in the coming months due to seasonal

and other adjustments. Accordingly, given the current level of the

operating reserve, it would be necessary to implement any fee increase

that may result from this rulemaking as soon as possible.

Proposed Action

GIPSA proposes to apply an approximate 3-percent increase to those

hourly and certain unit rates in 7 CFR 800.71, 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.

In reviewing the fee schedule to identify these fees that would

require a 3-percent increase, FGIS has identified several fees that

under the current fee schedule are at levels that would not require any

change. Accordingly, these fees would remain the same at this time.

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 proposed

to be revised 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 revised 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\

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Monday to Monday to Saturday,

Friday (6 a.m Friday (6 p.m. Sunday, and Holidays

to 6 p.m.) to 6 a.m.) Overtime \2\

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

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1-year contract................................. $23.80 $25.60 $33.40 $40.20

6-month contract................................ 25.80 27.60 35.40 46.20

3-month contract................................ 29.60 30.80 38.60 48.00

Noncontract..................................... 34.00 36.00 44.20 54.20

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(2) Additional Tests (cost per test, assessed in addition to the hourly rate) \3\

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(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

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(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)

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(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

(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

[[Page 26254]]

(b) Submitted sample--Factor only (per

factor)................................ .............. .............. .............. 0.70

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\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, &

checkloading):

(a) Truck/trailer/container (per carrier)....... $17.80

(b) Railcar (per carrier)....................... 27.25

(c) Barge (per carrier)......................... 174.00

(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)....... 9.75

(b) Railcar (per carrier)....................... 19.00

(c) Barge (per carrier)......................... 108.00

(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)........................................ 10.25

(b) Warehouseman inspection (per sample)........ 17.25

(c) Factor only (per factor--maximum 2 factors). 4.20

(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)... 11.25

(f) Class X Weighing (per hour per service

representative)................................ 45.00

(v) Additional tests (excludes sampling):

(a) Aflatoxin (per test--other than TLC method). 25.25

(b) Aflatoxin (per test--TLC method)............ 100.75

(c) Soybean protein and oil (one or both)....... 7.85

(d) Wheat protein (per test).................... 7.85

(e) Sunflower oil (per test).................... 7.85

(f) Vomitoxin (qualitative)..................... 25.25

(g) Vomitoxin (quantitative).................... 30.25

(h) Waxy corn (per test)........................ 9.10

(i) Canola (per test--00 dip test).............. 9.10

(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).... 74.85

(a) Factor only (per factor--max 2 factors)$.... 38.25

(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)........ 25.25

(b) Aflatoxin (TLC)............................. 110.30

(c) Soybean protein and oil (one or both)....... 15.45

(d) Wheat protein (per test).................... 15.45

(e) Sunflower oil (per test).................... 15.45

(f) Vomitoxin (per test--qualitative)........... 35.25

(g) Vomitoxin (per test--quantitative).......... 40.25

(h) Vomitoxin (per test--HPLC Board Appeal)..... 126.00

(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).................................... 65.40

(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)

(minimum $150 per ship)............................

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

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

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\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\ 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(2).

\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 agency, the Agency may, upon

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

Table 3.--Miscellaneous Services 1

(1) Grain grading seminars (per hour per $45.00 service

representative) \2\.................................... $45.00

(2) Certification of diverter-type mechanical samplers

(per hour per service representative) \2\.............. 45.00

(3) Special weighing services (per hour per service

representative) \2\

(i) Scale testing and certification................. 45.00

(ii) Evaluation of weighing and material handling

systems............................................ 45.00

(iii) NTEP Prototype evaluation (other than Railroad

Track Scales)...................................... 45.00

(iv) NTEP Prototype evaluation of Railroad Track.... 45.00

Scales (plus usage fee per day for test car).... 100.00

(v) Mass standards calibration and reverification... 45.00

(vi) Special projects............................... 45.00

(4) Foreign travel (per day per service representative). 420.00

(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).

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\1\ Any requested service that is not listed will be performed at $45.00

per hour.

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

other than regular hours charged at the applicable overtime hourly

rate.

Dated: May 7, 1997.

James R. Baker,

Administrator.

[FR Doc. 97-12435 Filed 5-12-97; 8:45 am]

BILLING CODE 3410-EN-P