Canadian Border Ports; Champlain, NY, and Derby Line, VT

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Parts 92 and 98

[Docket No. 97-014-1]

Canadian Border Ports; Champlain, NY, and Derby Line, VT

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: We are proposing to amend the animal and animal product

importation regulations by removing Champlain, NY, and Derby Line, VT,

as land border ports of entry for animals and animal germ plasm

imported from Canada into the United States. We want to improve the

efficiency of our animal inspection operations along the U.S.-Canada

border, and we do not believe that the current level of use of the

animal importation facilities at these two ports justifies the cost of

keeping them open. Importers may continue to use other ports along the

U.S-Canada border, including Highgate Springs, VT, and Buffalo and

Alexandria Bay, NY, to import animals and animal germ plasm from

Canada. We believe that new livestock inspection facilities and

extended hours of operation at the port at Highgate Springs, VT, will

enable us to handle any additional needs for inspection services caused

by closing the ports at Champlain, NY, and Derby Line, VT, which are

currently open on a part-time basis only.

DATES: Consideration will be given only to comments received on or

before August 26, 1997.

ADDRESSES: Please send an original and three copies of your comments to

Docket No. 97-014-1, Regulatory Analysis and Development, PPD, APHIS,

suite 3C03, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please

state that your comments refer to Docket No. 97-014-1. Comments

received may be inspected 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 comments are requested to call ahead on (202) 690-2817 to

facilitate entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Dr. Gary Colgrove, Chief Staff

Veterinarian, Import/Export Animals, National Center for Import and

Export, VS, APHIS, 4700 River Road Unit 39, Riverdale, MD 20737-1231,

(301) 734-3276.

SUPPLEMENTARY INFORMATION:

Background

The regulations in 9 CFR parts 92 and 98 (referred to below as the

regulations) restrict the importation of specified animals and animal

products into the United States to prevent the introduction of

communicable animal diseases. The regulations designate land border

ports along the U.S.-Canada border having inspection facilities for the

importation of certain animals and animal germ plasm that require

inspection. Section 92.203(b) lists the border ports through which

poultry from Canada may be imported; Sec. 92.303(b) lists the border

ports through which horses from Canada may be imported; Sec. 92.403(b)

lists the border ports through which ruminants from Canada may be

imported;Sec. 92.418(c)(2) lists the border ports through which cattle

from Canada may be imported; and Sec. 92.503(b) lists the border ports

through which swine from Canada may be imported. Section 98.33(b) lists

the border ports through which certain animal semen from Canada may be

imported, and Sec. 98.6 provides that

[[Page 34678]]

embryos regulated under subpart A of part 98 may be imported at ports

of entry listed in Sec. 92.303 for horses, Sec. 92.403 for ruminants,

and Sec. 92.503 for swine.

The ports of Champlain, NY, and Derby Line and Highgate Springs,

VT, are currently listed in all of the sections of parts 92 and 98

listed above and, therefore, are authorized ports of entry for the

importation of poultry, horses, swine, cattle, other ruminants, and

certain animal germ plasm from Canada. The animal importation

facilities at these ports are open on a part-time basis only: The

facilities at Champlain are open 1 day a week for 8 hours, the

facilities at Derby Line are open 1 day a week for 4 hours, and the

facilities at Highgate Springs are open 4 days a week for a total of 32

hours. Along the U.S.-Canada border, Highgate Springs is located

between Champlain and Derby Line; Champlain is approximately 18 miles

west of Highgate Springs, and Derby Line is approximately 48 miles east

of Highgate Springs.

The amount of animals and animal germ plasm imported annually

through Derby Line, VT, is extremely low compared to the amount

imported annually through other U.S.-Canada border ports. The amount of

animals and animal germ plasm imported annually through Highgate

Springs, VT, and Champlain, NY, are roughly similar to each other and,

although higher than the amount imported annually through Derby Line,

still relatively low when compared to other ports. To illustrate, in

fiscal years (FY) 1995 and 1996 and the first 4 months of FY 1997, the

three ports processed a total of 245,588 poultry (chicks and hatching

eggs)--a far higher number of importations than any other species.

Bovine importations (cattle and bison) were next highest with 19,236

bovines imported through the three ports during the same 28-month

period. By comparison, the port at Alexandria Bay, NY, processed

457,607 imported poultry and 122,607 imported bovines during that

timeframe. Therefore, the total number of poultry imported through

Derby Line, Highgate Springs, and Champlain combined was about 54

percent the number imported through Alexandria Bay. The total number of

bovines imported through these three ports was less than 16 percent the

number imported through Alexandria Bay.

We do not believe that the level of use of these three ports

justifies the cost of keeping all of them open. The Animal and Plant

Health Inspection Service (APHIS) funds import activities through user

fees. In recent years, the user fees generated through these three

ports have not covered their operating expenses. Moreover, we do not

believe that the relatively low level of use of these ports can be

attributed solely to the fact that they are open on a part-time basis

only. Over the years, we have found that the scheduled hours of

operation at these ports have met the needs of the local industry who

use them. In other words, we do not believe that increasing the hours

of operation at these ports would greatly increase their use by

importers.

As a result, we are considering closing the animal importation

facilities at Derby Line, VT, and Champlain, NY, and extending the

hours of operation at Highgate Springs, VT, so that the animal

importation facilities there are open full time during normal business

hours Monday through Friday. We anticipate that the port at Highgate

Springs operating on a full-time basis would be able to handle all

animal importations that would otherwise have gone through Derby Line

and Champlain. Therefore, we are proposing to amend 9 CFR parts 92 and

98 to remove Champlain, NY, and Derby Line, VT, from the lists of land

border ports for the importation of animals and animal germ plasm from

Canada.

The Federal Government and U.S. taxpayers would benefit from the

positive budgetary effect of closing these ports. The physical plants

in Champlain and Derby Line are old and becoming expensive to maintain.

A new livestock inspection facility at Highgate Springs is expected to

open in August 1997. Veterinary medical officers travel from other

official duty stations to these three ports to conduct inspections of

imported animals on the days the animal importation facilities are

open. Total travel time for the veterinary medical officers is 7\1/2\

hours per week. We plan to establish a full-time position for a

veterinary medical officer at Highgate Springs when the new livestock

inspection facility opens, so the travel time and expenses for our

employees will be eliminated. In addition to Highgate Springs, VT, the

land border ports of Alexandria Bay and Buffalo, NY, and two land

border ports in Maine would continue to serve livestock importers in

the Northeastern United States.

Executive Order 12866 and Regulatory Flexibility Act

This proposed rule has been reviewed under Executive Order 12866.

For this action, the Office of Management and Budget has waived its

review process required by Executive Order 12866.

In accordance with 5 U.S.C. 603, we have performed an Initial

Regulatory Flexibility Analysis, which is set out below, regarding the

impact of this proposed rule on small entities. However, we do not

currently have all of the data necessary for a comprehensive analysis

of the effects of this proposed rule on small entities. Therefore, we

are inviting comments on potential effects. In particular, we are

interested in determining the number and kind of small entities that

may incur benefits or costs from the implementation of this proposed

rule.

The Secretary of Agriculture has the authority under 21 U.S.C. 102-

105, 111, 134a, 134c, 136a, and 31 U.S.C. 9701 to regulate the

importation of animals and animal germ plasm to prevent the

introduction of foreign animal diseases and to collect user fees to

cover the costs of conducting associated inspection services.

The proposed rule would close the land border ports of Derby Line,

VT, and Champlain, NY, for the importation of animals and animal germ

plasm from Canada. APHIS uses these facilities primarily for conducting

inspections of animals and animal germ plasm imported from Canada,

although minimal export services are also performed at these

facilities. These ports are being considered for closure because the

cost of keeping them open does not appear justified by the minimal

level of import activity they support. If the two facilities are

closed, U.S. importers would still have access to import inspection

services at other entry points from Canada, including Highgate Springs,

VT, Buffalo and Alexandria Bay, NY, and Houlton and Jackman, ME.

Highgate Springs is 18 miles from Champlain and 48 miles from Derby

Line along the U.S.-Canada border.

The proposed rule is intended to improve APHIS' operating

efficiency. APHIS currently maintains part-time inspection facilities

at Champlain, Derby Line, and Highgate Springs. These facilities are

within close proximity of one another, and none is self-supporting; at

each facility, user fees generated from import and export services are

inadequate to cover the costs of providing those services. The total

user fee deficit (including both import and export user fees) in New

England for FY 1996 was $85,296. Of that amount, $73,795 was attributed

to Vermont. The fact that the facilities are open on a part-time basis

only is not considered to be a factor in the level of import activity.

In other words, increasing the facilities' hours would not increase

their use by importers. Nor are future user fee increases likely to

eliminate the deficit.

APHIS is currently considering closing the Champlain and Derby Line

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facilities and opening the Highgate Springs facility on a full-time

basis. It is estimated that by closing both the Champlain and Derby

Line facilities, APHIS will be able to cut its operating costs by

approximately $24,000 annually. In 1996, a total of $1.4 million was

collected in user fees for entry of live animals at ports (excluding

Mexican border ports, which have different fees.) Presumably, the lost

user fee revenue at Champlain and Derby Line would be made up at the

other nearby ports, especially Highgate Springs.

APHIS considered several alternatives to the proposed rule to help

reduce the user fee deficit and increase operating efficiency at these

ports, including increasing import user fees and staffing the ports

with lesser paid employees than veterinary medical officers. These

alternatives were rejected because of the potential for adverse

economic impacts on small entities and increased risk to the health of

the U.S. animal population. In addition, APHIS originally considered

closing only the port at Derby Line, VT, but that alternative was

rejected because the cost savings achieved would not be significant

enough to increase operating efficiency greatly at the ports.

In proposing to keep one of the three facilities open, APHIS is

attempting to strike a balance between the agency's needs for cost

savings and the industry's needs for continued nearby inspection

services. The proposal to keep the Highgate Springs facility open and

not one of the others is due to cost considerations. The cost of

maintaining the physical plant at Highgate Springs is lower than the

costs associated with maintaining the facilities at Champlain or Derby

Line, where the physical plants are aging. Moreover, because Highgate

Springs is located between Champlain and Derby Line, it is the logical

choice to keep open in trying to inconvenience the fewest number of

importers in the area.

The proposed rule should have little or no impact on U.S. consumers

because animals and animal germ plasm that currently enter the United

States at Champlain and Derby Line would still be available through

alternative ports of entry. The proposed rule would not restrict or

otherwise limit those imports.

The Champlain and Derby Line facilities are used mostly by

livestock dealers. It is estimated that about 25 dealers use the Derby

Line facility on a regular basis. The number of livestock dealers using

Champlain is not available, but combined data for Champlain and

Highgate Springs is available and show that about 50 dealers regularly

use Champlain or Highgate Springs. The number of these livestock

dealers who are considered small entities under the U.S. Small Business

Administration's (SBA) standards is unknown because information as to

the size of the dealers' businesses (in terms of the number of

employees) is not available. However, it is reasonable to assume that

most are small, based on aggregate data for providers of the same or

similar services in the United States. In 1992, 99 percent of all 1,992

firms in SIC 5154 (which includes livestock dealers) had fewer than 100

employees, the SBA's current small-entity size standard.

In terms of driving distance, Champlain and Derby Line are

approximately 31 miles and 55 miles, respectively, from Highgate

Springs. Therefore, as a result of the proposed rule, dealers who use

Champlain and Derby Line would have to travel at most an additional 62

miles and 110 miles per round-trip, respectively. And, assuming

Champlain and Derby Line users make one round-trip per week, they would

incur additional transportation costs of, at most, $967 and $1,716

annually, assuming a per-mile cost of $0.30. These costs are relatively

insignificant, given that the per-firm average receipts for all firms

in SIC 5154 in 1992 was $13.8 million. The additional transportation

costs ($967 and $1,716) represent less than 1 percent of the per-firm

average receipts.

As mentioned previously, comments on the economic impact of the

proposed rule on small entities are invited. There are no reporting or

recordkeeping requirements associated with this proposed rule.

Executive Order 12372

This program/activity is listed in the Catalog of Federal Domestic

Assistance under No. 10.025 and is subject to Executive Order 12372,

which requires intergovernmental consultation with State and local

officials. (See 7 CFR part 3015, subpart V.)

Executive Order 12988

This proposed rule has been reviewed under Executive Order 12988,

Civil Justice Reform. If this proposed rule is adopted: (1) All State

and local laws and regulations that are inconsistent with this rule

will be preempted; (2) no retroactive effect will be given to this

rule; and (3) administrative proceedings will not be required before

parties may file suit in court challenging this rule.

Paperwork Reduction Act

This proposed rule contains no information collection or

recordkeeping requirements under the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.).

List of Subjects

9 CFR Part 92

Animal diseases, Imports, Livestock, Poultry and poultry products,

Quarantine, Reporting and recordkeeping requirements.

9 CFR Part 98

Animal diseases and Imports.

Accordingly, 9 CFR parts 92 and 98 would be amended as follows:

PART 92--IMPORTATION OF CERTAIN ANIMALS, BIRDS, AND POULTRY, AND

CERTAIN ANIMAL, BIRD, AND POULTRY PRODUCTS; REQUIREMENTS FOR MEANS

OF CONVEYANCE AND SHIPPING CONTAINERS

1. The authority citation for part 92 would continue to read as

follows:

Authority: 7 U.S.C. 1622; 19 U.S.C. 1306; 21 U.S.C. 102-105,

111, 114a, 134a, 134b, 134c, 134d, 134f, 135, 136, and 136a; 31

U.S.C. 9701; 7 CFR 2.22, 2.80, and 371.2(d).

Secs. 92.203, 92.303, 92.403, 92.418, and 92.503 [Amended]

2. Sections 92.203(b), 92.303(b), 92.403(b), 92.418(c)(2), and

92.503(b) would be amended by removing the words ``,Buffalo, and

Champlain,'' and adding ``and Buffalo,'' in their place; and removing

the words ``Derby Line and''.

PART 98--IMPORTATION OF CERTAIN ANIMAL EMBRYOS AND ANIMAL SEMEN

3. The authority citation for part 98 would continue to read as

follows:

Authority: 7 U.S.C. 1622; 19 U.S.C. 1306; 21 U.S.C. 103-105,

111, 134a, 134b, 134c, 134d, 134f, 136, and 136a; 31 U.S.C. 9701; 7

CFR 2.22, 2.80, and 371.2(d).

Sec. 98.33 [Amended]

4. In Sec. 98.33, paragraph (b) would be amended by removing the

words ``, Buffalo, and Champlain,'' and adding ``and Buffalo,'' in

their place; and removing the words ``Derby Line and''.

Done in Washington, DC, this 23rd day of June 1997.

Terry L. Medley,

Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 97-16866 Filed 6-26-97; 8:45 am]

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