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. 98-006-2]

Veterinary Services User Fees; Import or Entry Services at Ports

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: We are amending existing user fees for import- or entry-

related services provided for animals presented at airports, ocean

ports, and rail ports. User fees for these services were set at a flat

rate. We are replacing the flat rate user fee with hourly rate user

fees. This action will ensure that the user fees collected are adequate

for the services that are provided.

EFFECTIVE DATE: October 25, 1999.

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 user fees,

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

Branch, Budget and Accounting Service Enhancement Unit, MRPBS, 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 (APHS) 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 borders 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-belted 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 airports, ocean ports, 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. 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.

On May 28, 1999, we published a proposal in the Federal Register

(64 FR 28942-28944, Docket No. 98-006-1) to amend existing user fees

for import- or entry-related services provided for animals presented at

air, ocean, and rail ports by charging our current hourly rate user fee

of $50 per hour ($14 per quarter hour, with a minimum fee of $16.50) as

listed in Sec. 130.9 of the regulations. However, we proposed that our

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

services provided by an APHIS employee on Sunday, holidays, or any time

outside the normal tour of duty of the employee. The proposed action

was taken to ensure that the user fees collected at airport, ocean

ports, and rail ports are adequate for the services provided.

We solicited comments concerning our proposal for 60 days ending

July 27, 1999. We received one comment by that date. The comment was

from an exporter. The commenter did not object to the proposal;

however, the commenter stated that we should consider changing,

reducing, or eliminating export user fees. This comment is beyond the

scope of this rulemaking; therefore, we are not amending the rule based

on the comment. However, if we decide to make any changes to our

regulations concerning export user fees, we will publish another

document in the Federal Register for public comment.

Miscellaneous

We have made a minor, nonsubstantive change by changing all

references to ``air, ocean, and rail ports'' to ``airports, ocean

ports, and rail ports.'' We believe this change will clearly indicate

that hourly rate user fees apply for import- or entry-related services

provided for animals presented at any airport, ocean port, or rail

port.

Therefore, for the reasons given in the proposed rule and in this

document, we are adopting the proposed rule as a final rule, with the

change discussed in this document Executive Order 12866 and Regulatory

Flexibility Act.

This 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 amending existing user fees for import- or entry-related

services provided for animals presented at airports, ocean ports, and

rail ports. User fees for these ports were set at a flat rate. We are

replacing the flat user fee with hourly rate user fees.

Based on this rule, the user fees for shipments that involve large

numbers of animals could decline because the user fees will 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 type of animals,

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

provide the required services, and the time of arrival. In the past,

after-hours arrivals at airports, ocean ports, and rail ports were

subject to reimbursable overtime in addition to the flat rate user fee.

However, under this rule, after-hours arrivals will be subject to the

premium hourly rate user fee.

[[Page 51422]]

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

may be affected by this rule. The entities who will be most affected by

this 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 effects cannot be precisely predicted.

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\1\ Profits of 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 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 will

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

entities.

Executive Order 12988

This final rule has been reviewed under Executive Order 12988,

Civil Justice Reform. This rule: (1) Preempts all State and local laws

and regulations that are inconsistent with this rule; (2) has not

retroactive effect; and (3) does not require administrative proceedings

before parties may file suit in court challenging this rule.

Paperwork Reduction Act

This final 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 are amending 9 CFR part 130 as follows:

PART 130--USER FEES

1. The authority citation for part 130 will 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) are 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 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 for these user fees in accordance with Secs. 130.50 and 130.51.

* * * * *

3. Section 130.9 is 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 for $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

airports, ocean ports, 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 17th day of September 1999.

Bobby R. Acord,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 99-24817 Filed 9-22-99; 8:45 am]

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