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: Final rule.

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

Inspection, Packers and Stockyards Administration (GIPSA) is increasing

by approximately 3 percent fees it charges for certain of its official

inspection and weighing services performed in the United States under

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

covers hourly rates and certain unit rates on tests performed at other

than an applicant's facility. The 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.

EFFECTIVE DATE: June 15, 1997.

FOR FURTHER INFORMATION CONTACT: George Wollam, USDA-GIPSA-ART, Room

0623-South Building, STOP 3649, 1400 Independence Avenue, S.W.,

Washington, D.C., 20250-3649, Telephone (202) 720-0292, or FAX (202)

720-4628, or E-M[email protected].

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 final 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 final

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

unless they present irreconcilable conflict with this final rule. There

are no administrative procedures which must be exhausted prior to any

judicial challenge to provisions of this final rule.

Effects on Small Entities

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

final 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 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 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

increase in fees will not have a significant impact on either small or

large entities. Additional revenue estimated for fiscal year 1997 is

projected to be $218,100 for a total of $22.21 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

On May 13, 1997, GIPSA published in the Federal Register (62 FR

26252) a proposal to increase by approximately 3 percent certain fees

it charges for official inspection and weighing services. A correction

docket was published in the Federal Register (62 FR 28922) on May 28,

1997, which made non substantive format and editorial changes to Table

1 of schedule A of section 800.71(a).

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 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 final

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 were published in the Federal Register on

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

The current fee schedule is projected to 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

[[Page 31702]]

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 $22.21 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 will be addressed in future rulemaking.

Comment Review

FGIS received three comments from trade associations during the 15-

day comment period. One commentor did not oppose the proposed increases

to existing fees; one was neutral on the proposed fee increase; and one

did not address the merits of the fee increase itself. All the

commentors, however, encourage GIPSA to strengthen its efforts to trim

overhead and improve operating efficiencies throughout the

organization. GIPSA continuously monitors its costs and strives to

lessen overhead and improve operating efficiencies.

One commentor also was of the view that the 15-day comment period

did not allow enough time to notify its members of the proposed action.

As stated in the proposal, a 15-day comment period was 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 was deemed necessary to

implement any fee increase that may result from this rulemaking as soon

as possible.

Final Action

GIPSA is applying 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 fees that require a 3-

percent increase, FGIS identified several fees that under the current

fee schedule are at levels that do not require any change. Accordingly,

those fees will remain the same at this time.

It is found that good cause exists for not postponing the effective

date of this rule until 30 days after publication in the Federal

Register (5 U.S.C. 553) because: (1) 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;

(2) given the current level of the operating reserve, the fee increase

should be implemented as soon as possible; and the effective date

coincides with beginning of a billing 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 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 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\

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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

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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

[[Page 31703]]

(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

(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

[[Page 31704]]

(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

(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

(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 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 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 ...........

Scales (plus usage fee per day for test car)......... 45.00

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: June 6-5, 1997.

David R. Shipman,

Acting Administrator.

[FR Doc. 97-15267 Filed 6-10-97; 8:45 am]

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