End-Use Certificate Program

DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 782

RIN 0560-AF64

End-Use Certificate Program

AGENCY: Farm Service Agency, Agriculture.

ACTION: Proposed rule

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SUMMARY: The Farm Service Agency (FSA) is proposing to amend

regulations governing the End-Use Certificate Program for imported

Canadian wheat to allow FSA to collect additional information regarding

distinguishing characteristics of imported wheat. The proposal also

will revise the definition of importer to include only the importer of

record as recognized by the U.S. Customs Service. Lastly, FSA proposes

to revise the deadline for submission of the End-Use Certificate from

15 work days to 10 work days after the date of entry. These changes are

necessary to facilitate a cooperative effort between FSA and the U.S.

Customs Service to make End-Use Certificates a part of the official

entry summary package. These changes will also help ensure that

Canadian wheat will not benefit from U.S.-export programs.

DATES: Comments must be submitted on or before January 25, 1999 to be

assured of consideration. The comment period is limited to 10 days

because on January 1, 1999, the United States Customs Service

implemented changes to the Harmonized Tariff Schedule relating to

wheat. The changes in this proposed rule are intended to compliment

these Harmonized Tariff Schedule changes and must coincide with them as

soon as possible.

ADDRESSES: FSA invites interested parties to submit written comments on

this proposed rule to: Steve Gill, Director, Warehouse and Inventory

Division, Farm Service Agency, STOP 0553, 1400 Independence Avenue, SW,

Washington, D.C. 20250-0553; telephone (202) 720-2121; FAX (202) 690-

3123; or E-mail CCC[email protected].

All written comments received in response to this proposed rule

will be available for public inspection in Room 5968, South Building,

U.S. Department of Agriculture, 1400 Independence Avenue, SW,

Washington, D.C., between 8:00 a.m. and 4:30 p.m., Monday through

Friday, except holidays.

FOR FURTHER INFORMATION CONTACT: Timothy R. Murray, Chief, Inventory

Management Branch, U.S. Department of Agriculture, Farm Service Agency,

STOP 0553, 1400 Independence Avenue, SW, Washington, DC 20250-0553;

telephone (202) 720-6125; FAX (202) 690-0014; E-mail

Tim__M[email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed rule is issued in conformance with Executive Order

12866 and has been determined not to be significant and therefore has

not been reviewed by the Office of Management and Budget under

Executive Order 12866.

Executive Order 12778

This proposed rule has been reviewed in accordance with Executive

order 12778. The provisions of this final rule do not preempt State

laws, are not retroactive, and do not involve administrative appeals.

Environmental Evaluation

It has been determined by an environmental evaluation that this

action will not have a significant impact of the quality of the human

environment. Therefore, neither an Environmental Assessment nor an

Environmental Impact Analysis is needed.

Executive Order 12372

This program/activity is not subject to the provisions of Executive

Order 12372, which requires intergovernmental consultation with State

and local officials. See notice related to 7 CFR part 3015, subpart V,

published at 48 FR 29115 (June 24, 1983).

Paperwork Reduction Act

The amendments to 7 CFR part 782 set forth in this proposed rule

involve a change in the existing information collection requirements

which were previously cleared by OMB under the provisions of 44 U.S.C.

35. In accordance with section 3507(j) of the Paperwork Reduction Act

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

recordkeeping requirements included in this proposed rule have been

submitted for emergency approval to the Office of Management and Budget

(OMB). OMB has assigned control number 0560-0151 to the information

collection and recordkeeping requirements. Notwithstanding any other

provision of the law, no person is required to respond to, nor shall

any person be subject to a penalty for failure to comply with a

collection of information, subject to the requirements of the Paperwork

Reduction Act, unless that collection of information displays a

currently valid OMB Control Number. Please send written comments to the

Office of Information and Regulatory Affairs, OMB, Attention: Desk

Officer for Agriculture, Washington, DC 20503. Please state that your

comments refer to Control Number 0560-0151. Additionally, please send a

copy of your comments to Timothy R. Murray, Warehouse and Inventory

Division, FSA, USDA, STOP 0553, 1400 Independence Avenue, SW,

Washington, DC 20250-0553. Comments may be submitted to Timothy Murray

by e-mail to [email protected]. All comments regarding this

information collection will be summarized and included in the request

for OMB approval. All comments will also become public records.

OMB is required to make a decision concerning the collection(s) of

information contained in these proposed regulations between 30 and 60

days after publication of this document in the Federal Register.

Therefore, a comment to OMB is best assured of having its full effect

if OMB receives it within 30 days of publication. This does not affect

the deadline for the public to comment to the Department on the

proposed regulations.

Abstract: The information collected under OMB Control Number 0560-

0151, insures that Canadian wheat does not benefit from USDA or

Commodity Credit Corporation assisted export programs. To comply with

the provisions of the North American Free Trade Agreement

Implementation Act, FSA requires information from the importers,

subsequent buyers, and end-users that will assist in tracking the

Canadian wheat within the U.S. Marketing System.

Estimate of Burden: Public reporting burden for this information

collection is estimated to average 0.26 hours per response.

Respondents: Wheat importers and traders.

Estimated Number of Respondents: 154.

Estimated Number of Responses per Respondent: 73.

Estimated Total Annual Burden on Respondents: 2,942 hours.

Proposed topics for comment on the information collection include:

(a) whether the collection of information is necessary for the proper

performance of the functions of the agency, including whether the

information will have practical utility; (b) the accuracy of the

agency's estimate of burden including the validity of the methodology

and

[[Page 2153]]

assumptions used; (c) ways to enhance the quality, utility and clarity

of the information to be collected; (d) ways to minimize the burden of

the collection of information on those who are to respond, including

through the use of appropriate automated, electronic, mechanical, or

other technological collection techniques or other forms of information

technology. Copies of the information collection may be obtained from

Timothy Murray at the address shown above.

Regulatory Flexibility Act

On January 26, 1995, FSA published a final rule that established

program requirements for the End-Use Certificate Program. A copy of

this Regulatory Flexibility Analysis is available upon request from

Timothy Murray, Warehouse and Inventory Division, FSA, STOP 0553, 1400

Independence Avenue, Washington, DC 20250-0553; telephone (202) 690-

4321.

Because these changes will not have an adverse impact on a

substantial number of small businesses, a Regulatory Flexibility

Assessment is not required.

Background

This proposal will amend the regulations at 7 CFR Part 782 with

respect to the U.S. End-Use Certificate Program. Since February 27,

1995, the effective date for the implementation of the End-Use

Certificate Program, several items have been identified that could

improve the effectiveness and the efficiency of the End-Use Certificate

Program. To further ensure that Canadian wheat does not benefit from

U.S. export programs, End-Use Certificates will include distinguishing

characteristics of grade, protein content, moisture content, dockage

and date of sale in addition to the class and/or varietal information

currently collected for each shipment. These additional data are deemed

necessary because imported wheat may benefit from U.S. export programs

even if the imported wheat itself is not directly eligible for use

under such programs. Such benefit may accrue if wheat of the type or

quality used under U.S. export programs (including humanitarian

assistance programs) is imported into the United States in anticipation

of, or as a result of use of a similar type or quality of U.S. wheat

under the U.S. program. Indeed, the Department of Agriculture is

frequently implored not to take action to facilitate sales of U.S.

wheat out of a concern that such sales will only encourage off-setting

imports of Canadian wheat. The proposed rule will provide necessary

information to monitor for such an occurrence and potentially allow

appropriate actions to minimize such an occurrence. In addition, these

additional data will help facilitate effective program audits while

minimizing the burden on importers of Canadian wheat.

FSA also proposes to replace the current definition used for

``Importer'' found at 7 CFR 782.2 with the same definition used by the

U.S. Customs Service and found at 19 U.S.C. 1484(a).

The U.S. Customs Service has informed the Department of Agriculture

officials that it will be amending the provisions of their basic import

bond to allow for the assessment of damages if there is a failure to

provide the End-Use Certificate in the time period provided by FSA.

List of Subjects in 7 CFR Part 782

Administrative practice and procedure, Barley, Reporting and

recordkeeping requirements, Wheat.

Accordingly, it is proposed that 7 CFR part 782 be amended as

follows:

PART 782--END-USE CERTIFICATE PROGRAM

1. The authority citation for part 782 continues to read as

follows:

Authority: 19 U.S.C. 3391(f).

2. Amend Sec. 782.2 to revise the definition for ``Importer'' to

read as follows:

Sec. 782.2 Definitions.

* * * * *

Importer means a party qualifying as an Importer of Record pursuant

to 19 U.S.C. 1484(a).

* * * * *

3. Amend Sec. 782.12(a) as follows:

A. Revise the first sentence to read as follows:

``Each entity that imports wheat originating in Canada shall, for

each entry into the U.S., obtain form FSA-750, End-Use Certificate for

Wheat, from Kansas City Commodity Office, Warehouse Contract Division,

P.O. Box 419205, Kansas City, MO 64141-6205, and submit the completed

original form FSA-750 to KCCO within 10 workdays following the date of

entry or release.''

B. Redesignate paragraphs (a)(6) through (a)(9) as paragraphs

(a)(8) through (a)(11), and add new paragraphs (a)(6) and (a)(7) to

read as follows:

Sec. 782.12 Filing FSA-750, End-Use Certificate for Wheat.

(a) * * *

(6) Grade, protein content, moisture content, and dockage level of

wheat being imported,

(7) Date of sale,

* * * * *

Signed at Washington, DC, on January 8, 1999.

Keith Kelly,

Administrator, Farm Service Agency.

[FR Doc. 99-798 Filed 1-11-99; 10:02 am]

BILLING CODE 3410-05-P