Importation of Poultry Products

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 94

[Docket No. 98-028-1]

Importation of Poultry Products

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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[[Page 67810]]

SUMMARY: We are proposing to amend the regulations for importing animal

products to allow the importation of poultry carcasses and parts or

products of poultry carcasses from regions where exotic Newcastle

disease (END) is considered to exist if they originated in a region

free of END and meet certain conditions with respect to processing and

shipping. This action would remove some restrictions on the importation

of poultry products from regions where END is considered to exist. We

believe the proposed conditions for importation will continue to

protect the United States from END.

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

before February 8, 1999.

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

Docket No. 98-028-1, 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. 98-028-1. 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. Michael David, Senior Staff

Veterinarian, Animals and Germplasm Programs, National Center for

Import and Export, VS, APHIS, 4700 River Road Unit 39, Riverdale, MD

20737; (301) 734-5034; or e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

The regulations in 9 CFR part 94 govern the importation of certain

animals, birds, poultry, meat, animal products, animal byproducts, hay,

and straw into the United States in order to prevent the introduction

of communicable diseases of livestock and poultry. The regulations in

94.6 (referred to below as the regulations) govern, among other things,

the importation of poultry carcasses, parts, and products from regions

where exotic Newcastle disease (END) is considered to exist.

Under the regulations, poultry carcasses and parts or products of

poultry carcasses may be imported into the United States from regions

where END is considered to exist only under one of the following

conditions:

1. If they are imported for consignment to a museum, educational

institution, or other establishment that has been approved by the

Administrator of the Animal and Plant Health Inspection Service

(APHIS), United States Department of Agriculture (USDA). Approval is

based on the establishment providing the Administrator with evidence

that it has the equipment, facilities, and capabilities to store,

handle, process, or disinfect the articles to prevent the introduction

or dissemination of END into the United States.

2. If they are packed in hermetically sealed containers and

afterward cooked by a commercial method to produce articles that are

shelf stable without refrigeration.

3. If they are thoroughly cooked, and, upon inspection by a

representative of the United States Department of Agriculture at the

port of arrival, have a thoroughly cooked appearance throughout.

4. If they are imported under permit granted by the Administrator

of APHIS after he or she determines that the importation will not

constitute a risk of introducing or disseminating END into the United

States.

We are proposing to amend Sec. 94.6 to also allow poultry carcasses

and parts or products of poultry carcasses to be imported into the

United States from regions where END is considered to exist if they

originated in a region free of END and meet certain requirements with

respect to processing and shipping. The primary purpose of this change

is to allow poultry meat that originates in the United States to be

shipped for processing to a country where END is considered to exist,

and then returned to the United States. The proposal would also allow

poultry meat that originates in another END-free region to be processed

in a region where END is considered to exist and then be shipped to the

United States. This action would remove some restrictions on the

importation of poultry carcasses and parts or products of poultry

carcasses from regions where END is considered to exist. We believe

this action poses only a negligible risk of introducing END into the

United States.

Shipment to Approved Establishments

Under this proposed rule, the poultry carcasses and parts or

products of poultry carcasses that originate in a region free of END

must be shipped for processing to the region where END is considered to

exist in closed containers sealed with serially-numbered seals applied

by an official of the national government of the region of origin. The

shipments would have to be accompanied by a certificate that was signed

by an official of the national government of the region of origin and

that specifies the products' region of origin, the processing

establishment to which the products are consigned, and the numbers of

the seals applied to the shipping containers.

Upon arrival at the processing establishment, the poultry carcasses

and parts or products of poultry carcasses could only be removed from

the containers after an official of the foreign region's national

government had determined that the seals were intact and free of any

evidence of tampering.

The official would have to attest to this fact by signing the

certificate accompanying the shipment. The signed certificate would

have to be kept on file at the processing establishment for at least 2

years after export of the processed products to the United States, and

must be made available to USDA inspectors to demonstrate compliance

with our regulations, if requested, during announced or unannounced

inspections.

Handling at Approved Establishments

Under this proposed rule, the poultry carcasses and parts or

products of poultry carcasses would be eligible for importation into

the United States only if they were handled and processed in accordance

with the following criteria:

1. Establishments in regions where END is considered to exist that

process poultry carcasses and parts or products of poultry carcasses

for export to the United States may not receive or process any live

poultry since END is easily spread in environments where live birds are

caged or slaughtered.

2. Processing establishments are not required to be facilities

dedicated to processing poultry products from END-free regions. Poultry

carcasses and parts or products of poultry carcasses that originate in

regions where END is considered to exist may be processed at the same

facility as poultry carcasses and parts or products of poultry

carcasses from END-free regions provided the following conditions are

met:

All areas, utensils, and equipment liable to contact the

poultry carcasses and parts or products of poultry carcasses to be

processed, including areas, utensils, and equipment for skinning,

deboning, cutting, and packing, must be cleaned and disinfected between

processing poultry from regions where END is considered to exist and

poultry from END-free regions in order to avoid contamination.

[[Page 67811]]

Poultry carcasses and parts or products of poultry

carcasses intended for export to the United States may not be handled,

cut, or otherwise processed at the same time as poultry carcasses and

parts or products of poultry carcasses not eligible for export to the

United States in order to avoid contamination.

Poultry carcasses and parts or products of poultry

carcasses intended for export to the United States must be packed in

clean, new packaging that is clearly distinguishable from that

containing poultry carcasses and parts or products of poultry carcasses

not eligible for export to the United States. Poultry carcasses and

parts or products of poultry carcasses must be stored in a manner that

ensures that no cross-contamination occurs.

3. Under the proposed rule, establishment operators would have to

enter into a cooperative service agreement with APHIS to ensure that

all expenses incurred by APHIS in inspecting the establishment would be

paid by the operators of the processing establishment. APHIS

anticipates that such inspections would occur once a year. The

cooperative service account would be required to contain a balance at

least equal to the cost of one inspection. APHIS would charge the

cooperative service account for travel, salary, and subsistence of

APHIS employees, as well as administrative overhead and other

incidental expenses (including excess baggage charges up to 150

pounds).

Shipment to the United States

Poultry carcasses and parts or products of poultry carcasses to be

imported into the United States must be shipped from the region where

they were processed in closed containers sealed with serially-numbered

seals applied by an official of the national government of that region.

The shipments would have to be accompanied by a certificate signed by

an official of the national government of the region where the poultry

carcasses and parts or products of poultry carcasses were processed.

The certificate would have to state that all of the above conditions

have been met and would also have to list the numbers of the seals

applied. A copy of this certificate must also be kept on file at the

processing establishment for at least 2 years after the products were

shipped to the United States.

We believe the conditions described above would ensure that the

poultry products present a negligible risk of introducing END into the

United States.

Executive Order 12866 and Regulatory Flexibility Act

This proposed rule has been reviewed under Executive Order 12866.

The rule has been determined to be not significant for the purposes of

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

Office of Management and Budget.

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. Based on the

information we have, there is no basis to conclude that this rule will

result in any significant economic impact on a substantial number of

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.

This proposed rule would amend the regulations for importing animal

products to allow the importation of poultry carcasses and parts or

products of poultry carcasses from regions where exotic Newcastle

disease (END) is considered to exist if they originated in a region

free of END and meet certain conditions with respect to processing and

shipping. This proposal would remove some restrictions on the

importation of poultry carcasses and parts or products of poultry

carcasses from regions where END is considered to exist.

In accordance with 21 U.S.C. 111-113, 114a, 115, 117, 120, 123, and

134a, the Secretary of Agriculture has the authority to promulgate

regulations and take measures to prevent the introduction into the

United States, and the interstate dissemination within the United

States, of communicable diseases of livestock and poultry.

This proposal would allow poultry carcasses and parts or products

of poultry carcasses that originated in any END-free region to be

processed in any region where END is considered to exist, and then be

shipped to the United States. At this time, however, the most likely

outcome of this proposal is that U.S.-origin poultry carcasses and

parts or products of poultry carcasses would be shipped to Mexico for

processing and then returned to the United States. It is unlikely that

any poultry processed in countries other than Mexico would enter the

United States as a result of this proposal. The high cost of shipping

processed poultry from END-free countries in the eastern hemisphere to

the United States makes it unlikely that such exports could compete in

the U.S. market. Further, countries other than Mexico in the western

hemisphere that could export processed poultry to the United States

under this proposal generally do not produce enough poultry and poultry

products to meet their own domestic demand. Western countries other

than Mexico may also have difficulty competing in the U.S. market due

to costs of shipping, unless the products exported were specialty items

not otherwise produced domestically in the United States. Therefore, we

anticipate that Mexico would be the only country to export any

processed poultry to the United States under this proposal, and our

analysis is based on this scenario. We welcome public comment on other

potential sources of processed poultry which would be allowed

importation into the United States if this proposal were adopted.

Poultry From Mexico

Poultry products to be imported into the United States from Mexico

under the proposed regulations would be required to originate in an

END-free region. Under Sec. 94.6 of the regulations, the only END-free

regions in the western hemisphere are Canada, Chile, Costa Rica, and

the United States. Poultry carcasses and parts or products of poultry

carcasses from Costa Rica could potentially be imported into Mexico for

processing and export to the United States, but Costa Rica does not

appear to produce enough poultry carcasses and parts or products of

poultry carcasses domestically to make such exports feasible or

profitable. It is unlikely that any Canadian poultry would be shipped

to Mexico for processing under this rule since U.S. poultry is

available for processing at lower cost. Further, the costs of shipping

the poultry carcasses and parts or products of poultry carcasses to

Mexico from Canada, Costa Rica, Chile, or any other END-free foreign

region, and subsequent costs of shipping poultry products from Mexico

to the United States, would likely be too high for the processed

poultry to be competitive in the U.S. market.

Therefore, it is likely that any poultry carcasses and parts or

products of poultry carcasses to be imported into Mexico for processing

in accordance with our proposal would originate in the United States

due to the United States' proximity to Mexico, its status as a net

poultry exporter, and the low cost of its unprocessed poultry. Poultry

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carcasses and parts or products of poultry carcasses would likely be

ground-shipped by southwestern and border State poultry producers to

facilities in northern Mexico for processing and reexportation to the

United States. Exactly how many U.S. poultry producers would take

advantage of this proposal and ship poultry carcasses or products to

Mexico to be processed and reexported to the United States is not

known. It is possible that U.S. producers would ship poultry carcasses

or products to Mexico for processing to take advantage of lower

processing costs or to use Mexican processing plants as supplements to

the existing U.S. workforce and facilities.

In 1997, the United States produced 33,115 million pounds of

poultry products, valued at $17 billion, and exported poultry meat

valued at over $2.2 billion (with 10 percent exported to Mexico). We

anticipate that whatever volume of processed poultry may be imported as

a result of this proposal would be minimal in relation to the overall

volume of poultry products currently available in the United States.

In 1997, the United States imported poultry meat valued at $11.2

million. Less than 2 percent of that total ($247,000) was imported from

Mexico, while over 93 percent ($10.5 million) was imported from Canada.

We anticipate that whatever volume of processed poultry that is

imported as a result of this proposal will be minimal in relation to

the total volume of all processed poultry imported into the United

States.

Trade Relations

This proposal would remove some restrictions on the importation of

poultry carcasses and parts or products of poultry carcasses from

regions where END is considered to exist and would encourage a positive

trading environment between the United States and Mexico and other

regions where END is considered to exist by stimulating economic

activity and providing export opportunities to foreign poultry

processing industries.

Effect on Small Entities

This proposal may have an effect on domestic poultry processors,

who could potentially lose business to Mexican poultry processors as a

result of the proposed rule. This proposal may also benefit U.S.

truckers and haulers, wholesale traders, and poultry producers and

packers, who stand to benefit from increased Mexican trade. However,

the extent to which small entities may be affected by this proposal

cannot be determined at this time.

Alternatives Considered

In developing this proposed rule, we considered: (1) Making no

changes to the regulations governing the importation of poultry from

regions where END is considered to exist; (2) proposing to allow the

importation of poultry carcasses and parts or products of poultry

carcasses that originated in a region free of END but that were

processed in a region where END is considered to exist under conditions

different from those proposed; or (3) proposing to allow the

importation of poultry carcasses and parts or products of poultry

carcasses that originated in a region free of END but that were

processed in a region where END is considered to exist under the

conditions proposed in this document.

We rejected the first alternative because the proposal appears to

provide a way to remove trade restrictions while maintaining adequate

safeguards against the introduction of END into the United States.

Under these circumstances, making no changes to the regulations would

be contrary to trade agreements entered into by the United States.

We also rejected the second alternative because it appeared that

conditions less stringent than those proposed would increase the risk

of the introduction of END into the United States to more than a

negligible level and that more stringent conditions would be

unnecessarily restrictive. We consider the proposed conditions to be

both effective and necessary in keeping at a negligible level the risk

of imported poultry products introducing END into the United States.

The proposed changes to the regulations would result in new

information collection or recordkeeping requirements, as described

below under the heading ``Paperwork Reduction Act.''

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

In accordance with section 3507(d) of the Paperwork Reduction Act

of 1995 (44 U.S.C. 3501 et seq.), the information collection or

recordkeeping requirements included in this proposed rule have been

submitted for approval to the Office of Management and Budget (OMB).

Please send written comments to the Office of Information and

Regulatory Affairs, OMB, Attention: Desk Officer for APHIS, Washington,

DC 20503. Please state that your comments refer to Docket No. 98-028-1.

Please send a copy of your comments to: (1) Docket No. 98-028-1,

Regulatory Analysis and Development, PPD, APHIS, suite 3C03, 4700 River

Road Unit 118, Riverdale, MD 20737-1238, and (2) Clearance Officer,

OCIO, USDA, room 404-W, 14th Street and Independence Avenue SW.,

Washington, DC 20250. A comment to OMB is best assured of having its

full effect if OMB receives it within 30 days of publication of this

proposed rule.

This proposed rule would amend the regulations to relieve certain

restrictions on the importation of poultry carcasses and parts or

products of poultry carcasses from regions where exotic Newcastle

disease (END) is considered to exist if they originated in a region

free of END and meet certain conditions with respect to processing and

shipping.

Implementing this proposed rule would necessitate the use of two

paperwork collection activities: The completion of a foreign meat

inspection certificate and the placing of seals on shipping containers.

We are asking OMB to approve our use of these information

collections.

We are soliciting comments from the public (as well as affected

agencies) concerning our proposed information collection and

recordkeeping requirements. We need this outside input to help us:

(1) Evaluate whether the proposed information collection is

necessary for the proper performance of our agency's functions,

including whether the information will have practical utility;

(2) Evaluate the accuracy of our estimate of the burden of the

proposed information collection, including the validity of the

methodology and assumptions used;

(3) Enhance the quality, utility, and clarity of the information to

be collected; and

(4) Minimize the burden of the proposed information collection on

those who are to respond, (such as through the use of appropriate

automated, electronic, mechanical, or other technological collection

techniques or other forms of information technology, e.g., permitting

electronic submission of responses).

Estimate of burden: Public reporting burden for this proposed

collection of information is estimated to average 0.147 hours per

response.

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Respondents: Full-time, salaried veterinarians of the agency of the

Government of Mexico responsible for animal health.

Estimated annual number of respondents: 4.

Estimated annual number of responses per respondent: 51.

Estimated annual number of responses: 204.

Estimated total annual burden on respondents: 30 hours.

Copies of this information collection can be obtained from

Clearance Officer, OCIO, USDA, room 404-W, 14th Street and Independence

Avenue SW., Washington, DC 20250.

List of Subjects 9 CFR Part 94

Animal diseases, Imports, Livestock, Meat and meat products, Milk,

Poultry, and poultry products, Reporting and recordkeeping

requirements.

Accordingly, we are proposing to amend 9 CFR part 94 as follows:

PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL

PLAGUE), EXOTIC NEWCASTLE DISEASE, AFRICAN SWINE FEVER, HOG

CHOLERA, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND

RESTRICTED IMPORTATIONS.

1. The authority citation for part 94 would continue to read as

follows:

Authority: 7 U.S.C. 147a, 150ee, 161, 162, and 450; 19 U.S.C.

1306; 21 U.S.C. 111, 114a, 134a, 134b, 134c, 134f, 136, and 136a; 31

U.S.C. 9701; 42 U.S.C. 4331 and 4332; 7 CFR 2.22, 2.80, and

371.2(d).

2. In Sec. 94.6, the section heading would be revised, paragraph

(c)(5) would be redesignated as paragraph (c)(6), and a new paragraph

(c)(5) would be added to read as follows:

94.6 Carcasses, parts or products of carcasses, and eggs (other than

hatching eggs) of poultry, game birds, or other birds; importations

from regions where exotic Newcastle disease (END) or S. enteritidis is

considered to exist.

* * * * *

(c) * * *

(5) Poultry carcasses and parts or products of poultry carcasses

that originated in a region considered to be free of END and are

processed (cut, packaged, and/or cooked) in a region where END is

considered to exist may be imported under the following conditions:

(i) Shipment to approved establishments.

(A) The poultry carcasses or parts or products of poultry carcasses

must be shipped from the END-free region where they originated in

closed containers sealed with serially-numbered seals applied by an

official of the national government of that region. They must be

accompanied by a certificate that is signed by an official of that

region's national government and specifies the products' region of

origin, the processing establishment to which the poultry carcasses or

parts or products of poultry carcasses are consigned, and the numbers

of the seals applied to the shipping containers.

(B) The poultry carcasses or parts or products of poultry carcasses

may be removed from containers at the processing establishment in the

region where END is considered to exist only after an official of the

foreign region's national government has determined that the seals are

intact and free of any evidence of tampering. The official must attest

to this fact by signing the certificate accompanying the shipment.

(ii) Handling of poultry carcasses and parts or products of poultry

carcasses. Establishments 1 in regions where END is

considered to exist that process poultry carcasses or parts or products

of poultry carcasses for export to the United States:

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\1\ As a condition of entry into the United States, poultry or

poultry products must also meet all of the requirements of the

Poultry Products Inspection Act (21 U.S.C. 451 et seq.) and

regulations thereunder (9 CFR part 381), including requirements that

the poultry or poultry products be prepared only in approved

establishments.

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(A) May not receive or handle any live poultry.

(B) Must keep any records required by this section on file at the

facility for a period of at least 2 years after export of processed

products to the United States, and must make those records available to

USDA inspectors during inspections.

(C) May process poultry carcasses and parts or products of poultry

carcasses that originate in both END-free regions and regions where END

is considered to exist, provided that:

(1) All areas, utensils, and equipment liable to contact the

poultry carcasses and parts or products of poultry carcasses to be

processed, including skinning, deboning, cutting, and packing areas,

are cleaned and disinfected between processing poultry from regions

where END is considered to exist and poultry carcasses and parts or

products of poultry carcasses from END-free regions.

(2) Poultry carcasses and parts or products of poultry carcasses

intended for export to the United States are not handled, cut, or

otherwise processed at the same time as any poultry not eligible for

export to the United States.

(3) Poultry carcasses and parts or products of poultry carcasses

intended for export to the United States are packed in clean new

packaging that is clearly distinguishable from that containing any

poultry not eligible for export to the United States.

(4) Poultry carcasses and parts or products of poultry carcasses

are stored in a manner that ensures that no cross-contamination occurs.

(iii) Cooperative service agreement. Operators of processing

establishments must enter into a cooperative service agreement with

APHIS to pay all expenses incurred by APHIS in inspecting the

establishment. APHIS anticipates that such inspections will occur once

a year. The cooperative service account must always contain a balance

that is at least equal to the cost of one inspection. APHIS will charge

the cooperative service account for travel, salary, and subsistence of

APHIS employees, as well as administrative overhead and other

incidental expenses (including excess baggage charges up to 150

pounds).

(iv) Shipment to the United States. Poultry carcasses and parts or

products of poultry carcasses to be imported into the United States

must be shipped from the region where they were processed in closed

containers sealed with serially-numbered seals applied by an official

of the national government of that region. The shipments must be

accompanied by a certificate signed by an official of the national

government of the region where the poultry was processed that lists the

numbers of the seals applied and states that all of the conditions of

this section have been met. A copy of this certificate must be kept on

file at the processing establishment for at least 2 years.

* * * * *

Done in Washington, DC, this 2nd day of December 1998.

Joan M. Arnoldi,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 98-32654 Filed 12-8-98; 8:45 am]

BILLING CODE 3410-34-P