Pork Promotion, Research, and Consumer Information Order Increase in Importer Assessments

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1230

[No. LS-97-001]

Pork Promotion, Research, and Consumer Information Order--

Increase in Importer Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer

Information Act (Act) of 1985 and the Pork Promotion, Research, and

Consumer Information Order (Order) issued thereunder, this final rule

increases by eight-hundredths of a cent per pound the amount of the

assessment per pound due on imported pork and pork products to reflect

an increase in the 1996 five-market average price for domestic barrows

and gilts. This action brings the equivalent market value of the live

animals from which such imported pork and pork products were derived in

line with the market values of domestic porcine animals. These changes

will facilitate the continued collection of assessments on imported

porcine animals, pork, and pork products.

EFFECTIVE DATE: June 12, 1997.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing

Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION: This final rule has been determined not

significant for purposes of Executive Order 12866 and therefore has

not been reviewed by the Office of Management and Budget.

This final rule has been reviewed under Executive Order 12988,

Civil Justice Reform. This is not intended to have a retroactive

effect. The Act states that the statute is intended to occupy the field

of promotion and consumer education involving pork and pork products

and of obtaining funds thereof from pork producers and that the

regulation of such activity (other than a regulation or requirement

relating to a matter of public health or the provision of State or

local funds for such activity) that is in addition to or different from

the Act may not be imposed by a State.

The Act provides that administrative proceedings must be exhausted

before parties may file suit in court. Under Sec. 1625 of the Act, a

person subject to an order may file a petition with the Secretary

stating that such order, a provision of such order or an obligation

imposed in connection with such order is not in accordance with law;

and requesting a modification of the order or an exemption from the

order. Such person is afforded the opportunity for a hearing on the

petition. After the hearing, the Secretary would rule on the petition.

The Act provides that the district court of the United States in the

district in which such person resides or does business has jurisdiction

to review the Secretary's determination, if a complaint is filed not

later than 20 days after the date such person receives notice of such

determination.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (5 United States Code (U.S.C.) 601 et seq.), the Agricultural

Marketing Service (AMS) has considered the economic impact of this

final action on small entities. The effect of the Order upon small

entities was discussed in the September 5, 1986, issue of the Federal

Register (51 FR 31898), and it was determined that the Order would not

have a significant effect upon a substantial number of small entities.

Many of the estimated 200 importers may be classified as small entities

under the Small Business Administration definition (13 CFR 121.601).

This final rule increases the amount of assessments on imported pork

and pork products subject to assessment by eight-hundredths of a

[[Page 26206]]

cent per pound, or as expressed in cents per kilogram, nineteen-

hundredths of a cent per kilogram. This increase is consistent with the

increase in the annual price of domestic barrows and gilts for calendar

year 1996. Adjusting the assessments on imported pork and pork products

would result in an estimated increase in assessments of $422,000 over a

12-month period. Assessments collected for 1996 were $2,804,935.

Accordingly, the Administrator of AMS has determined that this action

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

small entities.

The Act (7 U.S.C. 4801-4819) approved December 23, 1985, authorized

the establishment of a national pork promotion, research, and consumer

information program. The program was funded by an initial assessment

rate of 0.25 percent of the market value of all porcine animals

marketed in the United States and an equivalent amount of assessment on

imported porcine animals, pork, and pork products. However, that rate

was increased to 0.35 percent in 1991 (56 FR 51635) and to 0.45 percent

effective September 3, 1995 (60 FR 29963). The final Order establishing

a pork promotion, research, and consumer information program was

published in the September 5, 1986, issue of the Federal Register (51

FR 31898; as corrected, at 51 FR 36383 and amended at 53 FR 1909, 53 FR

30243, 56 FR 4, 56 FR 51635, and 60 FR 29963) and assessments began on

November 1, 1986.

The Order requires importers of porcine animals to pay the U.S.

Customs Service (USCS), upon importation, the assessment of 0.45

percent of the animal's declared value and importers of pork and pork

products to pay USCS, upon importation, the assessment of 0.45 percent

of the market value of the live porcine animals from which such pork

and pork products were produced. This final rule increases the

assessments on all of the imported pork and pork products subject to

assessment as published in the Federal Register as a final rule June 7,

1995, and effective September 3, 1995; (60 FR 29965). This increase is

consistent with the increase in the annual average price of domestic

barrows and gilts for calendar year 1996 as reported by USDA, AMS,

Livestock and Grain Market News (LGMN) Branch. This increase in

assessments will make the equivalent market value of the live porcine

animal from which the imported pork and pork products were derived

reflect the recent increase in the market value of domestic porcine

animals, thereby promoting comparability between importer and domestic

assessments. This final rule will not change the current assessment

rate of 0.45 percent of the market value.

The methodology for determining the per pound amounts for imported

pork and pork products was described in the Supplementary Information

accompanying the Order and published in the September 5, 1986, Federal

Register at 51 FR 31901. The weight of imported pork and pork products

is converted to a carcass weight equivalent by utilizing conversion

factors which are published in the Department's Statistical Bulletin

No. 697 ``Conversion Factors and Weights and Measures.'' These

conversion factors take into account the removal of bone, weight lost

in cooking or other processing, and the nonpork components of pork

products. Secondly, the carcass weight equivalent is converted to a

live animal equivalent weight by dividing the carcass weight equivalent

by 70 percent, which is the average dressing percentage of porcine

animals in the United States. Thirdly, the equivalent value of the live

porcine animal is determined by multiplying the live animal equivalent

weight by an annual average market price for barrows and gilts as

reported by USDA, AMS, LGMN Branch. This average price is published on

a yearly basis during the month of January in LGMN Branch's publication

``Livestock, Meat, and Wool Weekly Summary and Statistics.'' Finally,

the equivalent value is multiplied by the applicable assessment rate of

0.45 percent due on imported pork and pork products. The end result is

expressed in an amount per pound for each type of pork or pork product.

To determine the amount per kilogram for pork and pork products subject

to assessment under the Act and Order, the cent per pound assessments

are multiplied by a metric conversion factor 2.2046 and carried to the

sixth decimal.

The formula in the preamble for the Order at 51 FR 31901

contemplated that it would be necessary to recalculate the equivalent

live animal value of imported pork and pork products to reflect changes

in the annual average price of domestic barrows and gilts to maintain

equity of assessments between domestic porcine animals and imported

pork and pork products.

The average annual market price increased from $41.99 in 1995 to

$52.77 in 1996, an increase of about 25 percent. This increase will

result in a corresponding increase in assessments for all HTS numbers

listed in the table in Sec. 1230.110, 60 FR 29965; June 7, 1995, of an

amount equal to eight-hundredths of a cent per pound, or as expressed

in cents per kilogram, nineteen-hundredths of a cent per kilogram.

Based on the most recent available Department of Commerce, Bureau of

Census, data on the volume of imported pork and pork products, the

increase in assessment amounts would result in an estimated $422,000

increase in assessments over a 12-month period.

On February 26, 1997, AMS published in the Federal Register (62 FR

8639) a proposed rule which would increase the per pound assessment on

imported pork and pork products consistent with increases in the 1996

average prices of domestic barrows and gilts to provide comparability

between imported and domestic assessments. The proposal was published

with a request for comments by March 28, 1997. No comments were

received.

Accordingly, this final rule establishes the new per-pound and per-

kilogram assessments on imported pork and pork products.

List of Subjects in 7 CFR Part 1230

Administrative practice and procedure, Advertising, Agricultural

research, Marketing agreement, Meat and meat products, Pork and pork

products.

For the reasons set forth in the preamble, 7 CFR Part 1230 is

amended as follows:

PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION:

1. The authority citation for 7 CFR Part 1230 continues to read as

follows:

Authority: 7 U.S.C. 4801-4819.

Subpart B--[Amended]

2. Section 1230.110 is revised to read as follows:

Sec. 1230.110 Assessments on imported pork and pork products.

(a) The following HTS categories of imported live porcine animals

are subject to assessment at the rate specified.

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Live porcine animals Assessment

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0103.10.0000....................... 0.45 percent Customs Entered Value

[[Page 26207]]

0103.91.0000....................... 0.45 percent Customs Entered Value

0103.92.0000....................... 0.45 percent Customs Entered Value

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(b) The following HTS categories of imported pork and pork products

are subject to assessment at the rates specified.

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Assessment

Pork and pork products ---------------------

cents/lb cents/kg

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0203.11.0000...................................... .34 .749564

0203.12.1010...................................... .34 .749564

0203.12.1020...................................... .34 .749564

0203.12.9010...................................... .34 .749564

0203.12.9020...................................... .34 .749564

0203.19.2010...................................... .39 .859794

0203.19.2090...................................... .39 .859794

0203.19.4010...................................... .34 .749564

0203.19.4090...................................... .34 .749564

0203.21.0000...................................... .34 .749564

0203.22.1000...................................... .34 .749564

0203.22.9000...................................... .34 .749564

0203.29.2000...................................... .39 .859794

0203.29.4000...................................... .34 .749564

0206.30.0000...................................... .34 .749564

0206.41.0000...................................... .34 .749564

0206.49.0000...................................... .34 .749564

0210.11.0010...................................... .34 .749564

0210.11.0020...................................... .34 .749564

0210.12.0020...................................... .34 .749564

0210.12.0040...................................... .34 .749564

0210.19.0010...................................... .39 .859794

0210.19.0090...................................... .39 .859794

1601.00.2010...................................... .47 1.036162

1601.00.2090...................................... .47 1.036162

1602.41.2020...................................... .51 1.124346

1602.41.2040...................................... .51 1.124346

1602.41.9000...................................... .34 .749564

1602.42.2020...................................... .51 1.124346

1602.42.2040...................................... .51 1.124346

1602.42.4000...................................... .34 .749564

1602.49.2000...................................... .47 1.036162

1602.49.4000...................................... .39 .859794

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Dated: May 7, 1997.

Barry Carpenter,

Director, Livestock and Seed Division.

[FR Doc. 97-12500 Filed 5-12-97; 8:45 am]

BILLING CODE 3410-02-P