Veterinary Services User Fees; Import or Entry Services at Ports

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 130

[Docket No. 98-006-1]

Veterinary Services User Fees; Import or Entry Services at Ports

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: We are proposing to amend existing user fees for import- or

entry-related services provided for animals presented at air, ocean,

and rail ports. Existing user fees for these services are set at a flat

rate. We are proposing to replace the flat rate user fee with an hourly

rate user fee. We are taking this action to ensure that the user fees

collected are adequate for the services that are provided.

DATES: We invite you to comment on this docket. We will consider all

comments that we receive by July 27, 1999.

ADDRESSES: Please send your comment and three copies to: Docket No. 98-

006-1, Regulatory Analysis and Development, PPD, APHIS, Suite 3C03,

4700 River Road, Unit 118, Riverdale, MD 20737-1238. Please state that

your comment refers to Docket No. 98-006-1.

You may read any comments that we receive on this docket in our

reading room. The reading room is located in room 1141 of the USDA

South Building, 14th Street and Independence Avenue, SW., Washington,

DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through

Friday, except holidays. To be sure someone is there to help you,

please call (202) 690-2817 before coming.

APHIS documents published in the Federal Register, and related

information, including the names of organizations and individuals who

have commented on APHIS rules, are available on the Internet at http://

www.aphis.usda.gov/ppd/rad/webrepor.html.

FOR FURTHER INFORMATION CONTACT: For information concerning services

provided for live animals, contact Dr. Morley Cook, Senior Staff

Veterinarian, National Animal Programs Staff, Center for Import and

Export, VS, APHIS, 4700 River Road, Unit 38, Riverdale, MD 20737-1231;

(301) 734-8364.

For information concerning rate development of the proposed user

fees, contact Ms. Donna Ford, Section Head, Financial Systems and

Services Branch, Budget and Accounting Service Enhancement Unit, ABS,

APHIS, 4700 River Road Unit 54, Riverdale, MD 20737-1232; (301) 734-

8351.

SUPPLEMENTARY INFORMATION:

Background

User fees to reimburse the Animal and Plant Health Inspection

Service (APHIS) for the costs of providing import- and entry-related

services for animals, birds, and animal products are contained in 9 CFR

part 130 (referred to below as the regulations).

Section 130.6 lists the user fees for import- or entry-related

services provided at land border ports along the United States-Mexico

border. The services provided at these ports include inspecting and

processing imported animals and authorizing services for animals

transiting the United States. Section 130.7 lists the user fees charged

for import- or entry-related services for animals presented at any port

of entry other than a land border port along the United States-Mexico

border. These ports of entry include air, ocean, and rail ports and

land border ports along the United States-Canada border. Section 130.9

lists the hourly rate user fees for miscellaneous import or entry

services.

The flat rate user fees listed in Secs. 130.6 and 130.7 of the

regulations were based on our experience with activities at land border

ports along the United States-Canada and United States-Mexico borders.

These flat rate user fees were calculated as a nationwide average for

the costs involved in performing import- or entry-related services for

animals. We believe that these user fees are still appropriate for

import- or entry-related services for animals at land border ports

along the United States-Canada and United States-Mexico borders.

During a review of user fees and the import- and entry-related

services, we focused on a variety of factors that can affect our

services and their associated costs. These factors included the size of

the shipment, the location of the port, the location of APHIS

employees, the purpose of the shipment, and the method of shipment.

Often, shipments that enter ocean and rail ports contain 50 animals

or more. For these large shipments, the flat rate user fees may be

higher than the cost of providing the necessary services. In these

cases, the flat rate user fees do not consider the economies of scale

that can exist for large shipments. Therefore, the flat rate user fee

may not be appropriate for large shipments that arrive at ocean and

rail ports. When there are small shipments, for example two animals

arriving at an airport, the flat rate user fee does not come close to

covering the cost of our service because of the time required for our

employees to travel to the port.

Our employees are generally located near land border ports. When

shipments arrive at an air, ocean, or rail port, our employees must

travel to the port to provide the required import- or entry-related

services, which can require more time than it takes to provide the

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services. Therefore, the basic cost for providing services at air,

ocean, and rail ports is higher than the cost of providing the same

services at land border ports.

We could factor the variety of shipment sizes and various locations

into a new average flat rate user fee. However, we believe that, due to

the wide variances in shipments at air, ocean, and rail ports versus

shipments at land border ports, it would be more appropriate to

establish an hourly rate user fee for import- or entry-related services

for animals at air, ocean, or rail ports.

Therefore, we are proposing to charge our current hourly rate user

fee of $56 per hour ($14 per quarter hour, with a minimum fee of

$16.50) as listed in Sec. 130.9 of the regulations for import- or

entry-related services provided at air, ocean, or rail ports. However,

as set forth in Sec. 130.50, a premium rate user fee would apply for

services provided by an APHIS employee on Sundays, holidays, or any

time outside the normal tour of duty of the employee. For services

provided outside the employee's normal tour of duty on Monday through

Saturday and holidays, the hourly rate user fee of $65.00 ($16.25 per

quarter hour, with a minimum fee of $16.50) would apply. For services

provided on Sundays, the hourly rate user fee of $74.00 ($18.50 per

quarter hour, with a minimum fee of $16.50) would apply. We would

continue charging the flat rate user fees listed in Sec. 130.7 for

import- or entry-related services for animals at land ports along the

United States-Canada border.

In some cases, for example very small shipments, the user fee could

increase or decrease depending upon the number of animals in the

shipment, the amount of time required to provide the required services,

and the time of arrival. Currently, after-hours arrivals at air, ocean,

and rail ports are subject to reimbursable overtime in addition to the

flat rate user fee. However, based on this proposed rule, after-hours

arrivals would be subject to the premium hourly rate user fee.

In other cases, for example very large shipments, the user fee

could decrease. The amount of the decrease would reflect the economies

of scale, which would effectively lower the cost per animal.

While it is difficult to determine specific increases and decreases

in advance, we do not expect a significant increase in the collection

of user fees. In fact, based on the increases in large shipments, we

believe that many importers may save money based on this proposed

change.

Executive Order 12866 and Regulatory Flexibility Act

This proposed rule has been reviewed under Executive Order 12866.

This 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.

We are proposing to amend existing user fees for import- or entry-

related services provided for animals presented at air, ocean, and rail

ports. Existing user fees for these ports are set at a flat rate. We

are proposing to replace the flat rate user fee with an hourly rate

user fee.

If this proposed rule is adopted, the user fees for shipments that

involve large numbers of animals could decline because the user fees

would be based on the time necessary to provide the services rather

than the size of the shipment. For shipments that involve small numbers

of animals, the user fees could increase or decrease, depending upon

the number of animals in the shipment, the amount of time required to

provide the required services, and the time of arrival. Currently,

after-hours arrivals at air, ocean, and rail ports are subject to

reimbursable overtime in addition to the flat rate user fee. However,

under this proposed rule, after-hours arrivals would be subject to the

premium hourly rate user fee.

Any entity that uses APHIS' services that are subject to user fees

may be affected by this proposed rule. The entities who would be most

affected by this proposed rule are importers. The Small Business

Administration's criteria for a small entity engaged in importing and

exporting live animals, poultry, and birds is one whose total sales are

less than $5 million annually. However, the number of entities who

specifically trade in live animals and who would qualify as a small

entity under this definition cannot be determined. Data from the Bureau

of Census show that in 1995 the majority of agricultural entities who

dealt in grade animals can be considered small, except those entities

who dealt exclusively in purebred or registered animals.

The degree to which an entity could be affected by changes in user

fees depends on its market power or the ability to which costs could be

absorbed or passed on to buyers. Without information on either profit

margins or operational expenses of the affected entities,1

or the supply responsiveness of the affected industry,2 the

scale of economic impacts cannot be precisely predicted.

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\1\ Profits for sales of small entities are proprietary in

nature and are not a part of the public record.

\2\ The measurement of supply responsiveness would provide

information on the likely effect on an entity's production due to

changes in operating costs.

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This proposed rule should have a minimal effect on large and small

importers. As previously indicated, the total hourly user fees

collected should not be significantly different from the total flat

rate user fees that have been previously collected for the same

services. For those entities who do experience a change in the fee

amount, the economic effect should be minimal.

Under these circumstances, the Administrator of the Animal and

Plant Health Inspection Service has determined that this action would

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

entities.

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

The proposed rule contains no new information collection or

recordkeeping requirements under the Paperwork Reduction Act of 1995

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

List of Subjects in 9 CFR Part 130

Animals, Birds, Diagnostic reagents, Exports, Imports, Poultry and

poultry products, Quarantine, Reporting and recordkeeping requirements,

Tests.

Accordingly, we propose to amend 9 CFR part 130 as follows:

PART 130--USER FEES

1. The authority citation for part 130 would be revised to read as

follows:

Authority: 5 U.S.C. 5542; 7 U.S.C. 1622; 19 U.S.C. 1306; 21

U.S.C. 102-105, 111, 114, 114a, 134a, 134c, 134d, 134f, 136, and

136a; 31 U.S.C. 3701, 3716, 3717, 3719, and 3720A; 7 CFR 2.22, 2.80,

and 371.2(d).

2. In Sec. 130.7, the section heading and the introductory text in

paragraph (a) would be revised to read as follows:

Sec. 130.7 User fees for import or entry services for live animals at

land border ports along the United States-Canada border.

(a) User fees, with a minimum fee of $16.50, for live animals

presented for

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importation into or entry into the United States through a land border

port along the United States-Canada border, are listed in the following

table. The person for whom the service is provided and the person

requesting the service are jointly and severally liable for payment of

these user fees in accordance with Secs. 130.50 and 130.51.

* * * * *

3. Section 130.9 would be revised to read as follows:

Sec. 130.9 Hourly user fees for import or entry services.

(a) User fees for import and entry services listed in paragraphs

(a)(1) through (a)(5) of this section will be calculated at $56.00 per

hour, or $14.00 per quarter hour, with a minimum fee of $16.50, for

each employee required to perform the service. The person for whom the

service is provided and the person requesting the service are jointly

and severally liable for payment of these user fees in accordance with

Secs. 130.50 and 130.51.

(1) Services provided to live animals for import or entry at air,

ocean, and rail ports;

(2) Conducting inspections, including laboratory and facility

inspections, required to obtain permits either to import animal

products, organisms and vectors, or to maintain compliance with import

permits;

(3) Obtaining samples required to be tested either to obtain import

permits or to ensure compliance with import permits;

(4) Supervising the opening of in-bond shipments; and

(5) Other import or entry services not specified elsewhere in this

part.

(b) [Reserved]

(Approved by the Office of Management and Budget under control

numbers 0579-0055 and 0579-0094)

Done in Washington, DC, this 24th day of May 1999.

Joan M. Arnoldi,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 99-13620 Filed 5-27-99; 8:45 am]

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