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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1230

[No. LS-98-004]

Pork Promotion, Research, and Consumer Information Order--

Decrease in Importer Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed 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 proposed

rule would decrease by one-hundredth of a cent per pound the amount of

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

reflect a decrease in the 1997 five-market average price for domestic

barrows and gilts. This proposed action would bring 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 proposed changes will facilitate the continued

collection of assessments on imported porcine animals, pork, and pork

products.

DATES: Comments must be received by July 13, 1998.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief;

Marketing Programs Branch, STOP 0251; Livestock and Seed Program;

Agricultural Marketing Service (AMS), USDA, 1400 Independence Ave., SW;

Washington, D.C. 20250-0251. Comments will be available for public

inspection during regular business hours at the above office in Room

2606 South Building; 14th and Independence Avenue, SW., Washington,

D.C. 20090-6456.

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

Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778 and Regulatory Flexibility Act

This proposed 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 proposed rule has been reviewed under Executive Order 12988,

Civil Justice Reform. This proposal 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 the

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 a 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.

This action also was reviewed under the Regulatory Flexibility Act

(RFA) (5 United States Code (U.S.C.) 601 et seq.). The effect of the

Order upon small entities initially was discussed in the September 5,

1986, issue of the Federal Register (51 FR 31898). It was determined at

that time that the Order would not have a significant effect upon a

substantial number of small entities. Many of the estimated 1,000

importers may be classified as small entities under the Small Business

Administration definition (13 CFR 121.601).

This proposed rule would decrease the amount of assessments on

imported pork and pork products subject to assessment by one-hundredth

of a cent per pound, or as expressed in cents per kilogram, two-

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

decrease in the annual average price of domestic barrows and gilts for

calendar year 1997. The average annual market price decreased from

$52.77 in 1996 to $51.30 in 1997, a decrease of about 3 percent.

Adjusting the assessments on imported pork and pork products would

result in an estimated decrease in assessments of $48,000 over a 12-

month period. Assessments collected for 1997 were $3,369,587.

Accordingly, the Administrator of AMS has determined that this action

would 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, 60 FR 29963, 61 FR 29002, and 62 FR 26205)

and assessments began on November 1, 1986.

The Order requires importers of porcine animals to pay 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 proposed rule would decrease the

assessments on all of the imported pork

[[Page 31943]]

and pork products subject to assessment as published in the Federal

Register as a final rule May 13, 1997, and effective on June 12, 1997;

(62 FR 26205). This decrease is consistent with the decrease in the

annual average price of domestic barrows and gilts for calendar year

1997 as reported by USDA, AMS, Livestock and Grain Market News (LGMN)

Branch. This decrease in assessments would make the equivalent market

value of the live porcine animal from which the imported pork and pork

products were derived reflect the recent decrease in the market value

of domestic porcine animals, thereby promoting comparability between

importer and domestic assessments. This proposed rule would 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 decreased from $52.77 in 1996 to

$51.30 in 1997, a decrease of about 3 percent. This decrease would

result in a corresponding decrease in assessments for all HTS numbers

listed in the table in Sec. 1230.110, 62 FR 26205; May 13, 1997, of an

amount equal to one-hundredth of a cent per pound, or as expressed in

cents per kilogram, two-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 available for the period

January 1, 1997, through September 30, 1997, the proposed decrease in

assessment amounts would result in an estimated $48,000 decrease in

assessments over a 12-month period.

This proposed rule provides for a 30-day comment period. This

comment period is appropriate because the proposed rule simply provides

for an adjustment in the per pound assessment levels on imported pork

and pork products to reflect changes in live hog prices which occurred

from 1996 to 1997. These live hog prices form the basis for the

assessments. This adjustment, if adopted, should be made effective as

soon as possible to promote optimum equity.

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, it is proposed that 7

CFR Part 1230 be 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............................................... \1\ 0.45

0103.91.0000............................................... \1\ 0.45

0103.92.0000............................................... \1\ 0.45

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\1\ Percent Customs Entered Value.

(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.................................. .33 .727518

0203.12.1010.................................. .33 .727518

0203.12.1020.................................. .33 .727518

0203.12.9010.................................. .33 .727518

0203.12.9020.................................. .33 .727518

0203.19.2010.................................. .38 .837748

0203.19.2090.................................. .38 .837748

0203.19.4010.................................. .33 .727518

0203.19.4090.................................. .33 .727518

0203.21.0000.................................. .33 .727518

0203.22.1000.................................. .33 .727518

0203.22.9000.................................. .33 .727518

0203.29.2000.................................. .38 .837748

0203.29.4000.................................. .33 .727518

0206.30.0000.................................. .33 .727518

0206.41.0000.................................. .33 .727518

0206.49.0000.................................. .33 .727518

0210.11.0010.................................. .33 .727518

0210.11.0020.................................. .33 .727518

0210.12.0020.................................. .33 .727518

0210.12.0040.................................. .33 .727518

0210.19.0010.................................. .38 .837748

0210.19.0090.................................. .38 .837748

1601.00.2010.................................. .46 1.014116

1601.00.2090.................................. .46 1.014116

1602.41.2020.................................. .50 1.102300

1602.41.2040.................................. .50 1.102300

1602.41.9000.................................. .33 .727518

1602.42.2020.................................. .50 1.102300

1602.42.2040.................................. .50 1.102300

1602.42.4000.................................. .33 .727518

1602.49.2000.................................. .46 1.014116

1602.49.4000.................................. .38 .837748

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Dated: June 8, 1998.

Barry L. Carpenter,

Deputy Administrator, Livestock and Seed Program.

[FR Doc. 98-15578 Filed 6-10-98; 8:45 am]

BILLING CODE 3410-02-P