Amendment to the Beef Promotion and Research Rules and Regulations-Final Rule, 47074-47076 [E6-13477]
Download as PDF
<![CDATA[
cprice-sewell on PROD1PC66 with RULES
47074
Federal Register / Vol. 71, No. 158 / Wednesday, August 16, 2006 / Rules and Regulations
domestic product added to the $2.37
would result in a 2006 base fee of $2.45
per bale. The formula in the Act
provides for the use of the percentage
change in the implicit price deflator of
the gross national product (as indexed
for the most recent 12-month period for
which statistics are available). However,
gross national product has been
replaced by gross domestic product by
the Department of Commerce as a more
appropriate measure for the short-term
monitoring and analysis of the U.S.
economy.
The number of bales to be classed by
the United States Department of
Agriculture from the 2006 crop is
estimated at 20,268,150 bales. The 2006
base fee was decreased 15 percent based
on the estimated number of bales to be
classed (1 percent for every 100,000
bales or portion thereof above the base
of 12,500,000, limited to a maximum
decreased adjustment of 15 percent).
This percentage factor amounts to a 37
cents per bale reduction and was
subtracted from the 2006 base fee of
$2.45 per bale, resulting in a fee of $2.08
per bale.
However, with a fee of $2.08 per bale,
the projected operating reserve would
be 35.74 percent. The Act specifies that
the Secretary shall not establish a fee
which, when combined with other
sources of revenue, will result in a
projected operating reserve of more than
25 percent. Accordingly, the fee of $2.08
must be reduced by 23 cents per bale,
to $1.85 per bale, to provide an ending
accumulated operating reserve for the
fiscal year of not more than 25 percent
of the projected cost of operating the
program. This would establish the 2006
season fee at $1.85 per bale.
Accordingly, § 28.909, paragraph (b)
would reflect the continuation of the
HVI classification fee at $1.85 per bale.
As provided for in the Uniform Cotton
Classing Fees Act of 1987, as amended,
a 5 cent per bale discount would
continue to be applied to voluntary
centralized billing and collecting agents
as specified in § 28.909 (c).
Growers or their designated agents
receiving classification data would
continue to incur no additional fees if
classification data is requested only
once. The fee for each additional
retrieval of classification data in
§ 28.910 would remain at 5 cents per
bale. The fee in § 28.910 (b) for an
owner receiving classification data from
the National database would remain at
5 cents per bale, and the minimum
charge of $5.00 for services provided per
monthly billing period would remain
the same. The provisions of § 28.910 (c)
concerning the fee for new classification
memoranda issued from the National
VerDate Aug<31>2005
15:48 Aug 15, 2006
Jkt 208001
database for the business convenience of
an owner without reclassification of the
cotton will remain the same at 15 cents
per bale or a minimum of $5.00 per
sheet.
The fee for review classification in
§ 28.911 would be maintained at $1.85
per bale.
The fee for returning samples after
classification in § 28.911 would remain
at 40 cents per sample.
Pursuant to 5 U.S.C. 553, good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because this rule maintains user fees for
2006 crop cotton classification services
under the Cotton Statistics and
Estimates Act at the same level as in
2005 and a 15-day comment period was
provided for public comment and one
favorable comment was received.
List of Subjects in 7 CFR Part 28
Administrative practice and
procedure, Cotton, Cotton samples,
Grades, Market news, Reporting and
recordkeeping requirements, Standards,
Staples, Testing, Warehouses.
For the reasons set forth in the
preamble, 7 CFR Part 28 is amended as
follows:
I
PART 28—[AMENDED]
1. The authority citation for 7 CFR
Part 28, Subpart D, continues to read as
follows:
I
Authority: 7 U.S.C. 471–476.
2. In § 28.909, paragraph (b) is revised
to read as follows:
I
§ 28.909
Costs.
*
*
*
*
*
(b) The cost of High Volume
Instrument (HVI) cotton classification
service to producers is $1.85 per bale.
*
*
*
*
*
3. In § 28.911, the last sentence of
paragraph (a) is revised to read as
follows:
I
§ 28.911
Review classification.
(a) * * * The fee for review
classification is $1.85 per bale.
*
*
*
*
*
Dated: August 9, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E6–13476 Filed 8–15–06; 8:45 am]
BILLING CODE 3410–02–P
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1260
[No. LS–01–06]
Amendment to the Beef Promotion and
Research Rules and Regulations—
Final Rule
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: This final rule amends the
Beef Promotion and Research Order
(Order) established under the Beef
Promotion and Research Act of 1985
(Act) to reduce assessment levels for
imported beef and beef products based
on revised determinations of live animal
equivalencies and to update and expand
the Harmonized Tariff System (HTS)
numbers and categories, which identify
imported live cattle, beef, and beef
products to conform with recent
updates in the numbers and categories
used by the U.S. Customs and Border
Protection (Customs).
DATES: Effective Date: September 15,
2006.
FOR FURTHER INFORMATION CONTACT:
Kenneth R. Payne, Chief, Marketing
Programs Branch, Room 2638–S,
Livestock and Seed Program,
Agricultural Marketing Service (AMS),
USDA, STOP 0251, 1400 Independence
Avenue, SW., Washington, DC 20250–
0251; facsimile 202/720–1125;
telephone 202/720–1115, or by e-mail at
Kenneth.Payne@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget
(OMB) has waived the review process
required by Executive Order 12866 for
this action.
Executive Order 12988
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. This rule is not intended
to have a retroactive effect.
Section 11 of the Act provides that
nothing in the Act may be construed to
preempt or supersede any other program
relating to beef promotion organized
and operated under the laws of the
United States or any State. There are no
administrative proceedings that must be
exhausted prior to any judicial
challenge to the provisions of this rule.
Regulatory Flexibility Act
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA)(5
E:\FR\FM\16AUR1.SGM
16AUR1
Federal Register / Vol. 71, No. 158 / Wednesday, August 16, 2006 / Rules and Regulations
U.S.C. 601 et seq.), the Administrator of
AMS has considered the economic
effect of this action on small entities and
has determined that this proposed rule
will not have a significant economic
impact on a substantial number of small
business entities. The effect of the Order
upon small entities was discussed in the
July 18, 1986 Federal Register [51 FR
26132]. The purpose of RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly burdened.
There are approximately 270
importers who import beef or edible
beef products into the United States and
198 importers who import live cattle
into the United States. The majority of
these operations subject to the Order are
considered small businesses under the
criteria established by the Small
Business Administration (SBA)[13 CFR
121.201]. SBA defines small agricultural
service firms as those having annual
receipts of $6.5 million or less.
The final rule will impose no
significant burden on the industry. It
will merely update and expand the HTS
numbers and categories to conform to
recent updates in the numbers and
categories used by Customs. This final
rule will also adjust the live animal
equivalencies used to determine the
amount of assessments collected on
imported beef and beef products. This
adjustment reflects an increase in the
average dressed weight of cows
slaughtered under Federal inspection
that has occurred since the inception of
the Beef Checkoff Program. Accordingly,
the Administrator of AMS has
determined that this action will not
have a significant impact on a
substantial number of small entities.
cprice-sewell on PROD1PC66 with RULES
Paperwork Reduction Act
In accordance with the Office of
Management and Budget (OMB)
regulations [5 CFR part 1320] that
implement the Paperwork Reduction
Act of 1995 [44 U.S.C. Chapter 35], the
information collection and
recordkeeping requirements contained
in the Order and Rules and Regulations
have previously been approved by OMB
under OMB control number 0581–0202
and merged into OMB control number
0581–0093.
Background
The Act authorized the establishment
of a national beef promotion and
research program. The final Order was
published in the Federal Register on
July 18, 1986, (51 FR 21632) and the
collection of assessments began on
October 1, 1986. The program is
administered by the Cattlemen’s Beef
VerDate Aug<31>2005
15:48 Aug 15, 2006
Jkt 208001
Promotion and Research Board (Board)
appointed by the Secretary of
Agriculture (Secretary) from industry
nominations composed of 104 cattle
producers and importers. The program
is funded by a $1-per-head assessment
on producer marketing of cattle in the
United States and on imported cattle as
well as an equivalent amount on
imported beef and beef products.
Importers pay assessments on
imported cattle, beef, and beef products.
Customs collects and remits the
assessment to the Board. The term
‘‘importer’’ is defined as ‘‘any person
who imports cattle, beef, or beef
products from outside the United
States.’’ Imported beef or beef products
is defined as ‘‘products which are
imported into the United States which
the Secretary determines contain a
substantial amount of beef including
those products which have been
assigned one or more of the following
numbers in the Tariff Schedule of the
United States.’’
In 1989, Customs implemented a new
numbering system, the HTS, to replace
the Tariff Schedule of the United States
(TSUS) system. The Department of
Agriculture (USDA) updated the TSUS
to HTS, in a final rule, published in the
Federal Register on April 20, 1989, (54
FR 15915) to conform with updates
made by Customs. Since the inception
of HTS, it has undergone many changes.
First, the original 11 digit system has
been replaced with a 10 digit system.
Additionally, most of the categories
regarding imported beef and beef
products have been subdivided and the
new categories have been assigned HTS
numbers. The purpose of this final rule
is to update, expand, and revise the
table found under § 1260.172 (7 CFR
1260.172) to reflect the current HTS
numbers.
As a result of these changes to HTS,
there are 20 new categories that cover
imported live cattle subject to
assessment compared with the previous
8 categories. The 30 categories
identifying imported beef and beef
products have been expanded to 54
categories.
This final rule simply updates and
expands the chart published in the 1989
final rule to conform with recent
changes to the HTS numbering system
and revises the live weight equivalents
used to calculate import assessments.
Importers are currently paying the same
assessment level for imported beef and
beef products that was established when
the Order was first published in 1986.
At that time, the average dressed weight
of cows slaughtered under Federal
inspection was determined to be 509
pounds. USDA determined that using
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
47075
the average dressed weight of domestic
cows slaughtered under Federal
inspection would be most suitable
because about 90 percent of imported
beef and beef products were similar to
domestic cow beef.
The Act requires that assessments on
imported beef and beef products be
determined by converting such imports
into live animal equivalents to ascertain
the corresponding number of head of
cattle. Carcass weight is the principle
factor in calculating live animal
equivalents. Under the Order, the Board
may increase or decrease the level of
assessments for imported beef and beef
products based upon revised
determination of live animal
equivalencies.
Prior to publishing the proposed rule,
USDA received two recommendations
concerning importer assessments. The
Meat Importers Council of America
(MICA) requested to increase the live
animal equivalency rate that would
reduce the amount of assessments
collected from importers of beef and
beef products. MICA suggests using the
dressed cow weight for calendar year
2000 to recalculate levels of
assessments. This average would be 579
pounds. In updating the average dressed
cow weight for calendar year 2004, the
average would be 614 pounds. The
Board recommends using an average
dressed cow weight from 1987 to the
most current data. The Board states that
‘‘establishing an average over this
period of time takes into account short
term highs and lows due to the cattle
cycle, weather effects, and feed prices.’’
This average would be 555 pounds.
Comments
On October 5, 2005, USDA published
in the Federal Register (70 FR 58095) a
proposed rule to amend the Beef
Promotion and Research Order (Order)
established under the Beef Promotion
and Research Act of 1985 (Act) to
reduce assessment levels for imported
beef and beef products based on revised
determinations of live animal
equivalencies and to update and expand
the HTS numbers and categories, which
identify imported live cattle, beef, and
beef products to conform with recent
updates in the numbers and categories
used by the Customs.
USDA received in a timely manner
two comments, one from the Executive
Director of the Meat Importers Council
of America (MICA) and another from an
interested party. The two comments
have been posted on AMS’ Web site at
https://www.ams.usda.gov/lsg/mpb/rpbeef.htm. The changes suggested by
commenters are discussed below.
E:\FR\FM\16AUR1.SGM
16AUR1
47076
Federal Register / Vol. 71, No. 158 / Wednesday, August 16, 2006 / Rules and Regulations
cprice-sewell on PROD1PC66 with RULES
Discussion of Comments
The USDA proposed establishing the
average carcass weight using a 5-year
weighted average carcass weight of
domestic cows. Although MICA
supports the reduction of assessment
levels for imported beef and beef
products, MICA contends the basis for
determining the assessment should not
be the proposed 5-year weighted average
carcass weight of all cows slaughtered
in the U.S. under Federal inspection
because imported beef is derived from a
range of classes of stock, including
steers, heifers and bulls as well as cows.
The commenter recommended that the
formula be based on a mix of cow and
steer weights. Thus, MICA proposed
that the carcass weight used to calculate
the assessments on imported beef be
based on a ratio of one-third (1/3) of the
5-year average carcass weight of steers
and two-thirds (2/3) of the 5-year
average carcass weight of cows which
would result in an average carcass
weight of approximately 663 pounds.
While this does not take into account
bulls and heifers, the commenter feels
that the differences in these two classes
would probably balance each other out
and, thus, would not materially affect
the calculation.
USDA reviewed total imported beef
and veal production on a carcass weight
equivalent to identify the top 10
countries exporting to the United States
in 2005. These countries accounted for
more than 99 percent of U.S. beef and
veal imports for that year. We then
calculated the average carcass weight of
cattle slaughtered in each country for
the years 2000–2004 by dividing total
beef production by the total number of
cattle slaughtered. Based on our
calculations, the average carcass weight
of these 10 exporting countries was 592
pounds during this period, which is the
same weight published in the proposed
rule. In other words, accounting for all
cattle (whether steers, heifers, cows, or
bulls) produced by the leading countries
from which the United States imports
beef leads to the same carcass weight
equivalent as that in the proposed rule.
Using the recent 5-year average carcass
weight of all domestic cows slaughtered
in the U.S. under Federal inspection is
very representative of the average
carcass weight of for those countries
importing to the U.S. Consequently, the
comment is not adopted.
While expressing general misgivings
concerning the program, the second
commenter suggested that the
assessment rate should be increased to
$10 per head. The Act provides that the
assessment rate for live imported cattle
VerDate Aug<31>2005
15:48 Aug 15, 2006
Jkt 208001
be $1 per head. Consequently, this
comment is not adopted.
Accordingly, it is appropriate to use a
5-year average dressed weight of
domestic cows slaughtered under
Federal inspection of 592 pounds to
calculate assessments on imported beef
and beef products.
List of Subjects in 7 CFR part 1260
Administrative practice and
procedure, Advertising, Agricultural
research, Marketing agreements, Meat
and meat products, Beef, and Beef
products.
For the reasons set forth in the
preamble, title 7 of the CFR part 1260
is amended as follows:
I
PART 1260—BEEF PROMOTION AND
RESEARCH
1. The authority citation for 7 CFR
part 1260 continues to read as follows:
I
Authority: 7 U.S.C. 2901–2911.
2. Paragraph (b)(2) of § 1260.172 is
revised to read as follows:
I
§ 1260.172
Assessments.
*
*
*
*
*
(b) * * *
(2) The assessment rates for imported
cattle, beef, and beef products are as
follows:
IMPORTED LIVE CATTLE
Assessment
rate
(head)
HTS No.
0102.10.0010
0102.10.0020
0102.10.0030
0102.10.0050
0102.90.2011
0102.90.2012
0102.90.4024
0102.90.4028
0102.90.4034
0102.90.4038
0102.90.4054
0102.90.4058
0102.90.4062
0102.90.4064
0102.90.4066
0102.90.4068
0102.90.4072
0102.90.4074
0102.90.4082
0102.90.4084
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
$1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
IMPORTED BEEF AND BEEF PRODUCTS
Assessment
rate per kg
HTS No.
0201.10.0510
0201.10.0590
0201.10.1010
0201.10.1090
PO 00000
Frm 00004
........................
........................
........................
........................
Fmt 4700
Sfmt 4700
IMPORTED BEEF AND BEEF
PRODUCTS—Continued
Assessment
rate per kg
HTS No.
0201.10.5010
0201.10.5090
0201.20.0200
0201.20.0400
0201.20.0600
0201.20.1000
0201.20.3000
0201.20.5000
0201.20.8090
0201.30.0200
0201.30.0400
0201.30.0600
0201.30.1000
0201.30.3000
0201.30.5000
0201.30.8090
0202.10.0510
0202.10.0590
0202.10.1010
0202.10.1090
0202.10.5010
0202.10.5090
0202.20.0200
0202.20.0400
0202.20.0600
0202.20.1000
0202.20.3000
0202.20.5000
0202.20.8000
0202.30.0200
0202.30.0400
0202.30.0600
0202.30.1000
0202.30.3000
0202.30.5000
0202.30.8000
0206.10.0000
0206.21.0000
0206.22.0000
0206.29.0000
0210.20.0000
1601.00.4010
1601.00.4090
1601.00.6020
1602.50.0900
1602.50.1020
1602.50.1040
1602.50.2020
1602.50.2040
1602.50.6000
*
*
*
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
*
.01459542
.00511787
.00530743
.00511787
.00379102
.00530743
.00511787
.00379102
.00379102
.00530743
.00511787
.00379102
.00530743
.00511787
.00511787
.00511787
.01459542
.00379102
.01459542
.00370102
.01459542
.00379102
.00530743
.00511787
.00379102
.00530743
.00511787
.00379102
.00379102
.00530743
.00511787
.00527837
.00530743
.00511787
.00511787
.00379102
.00379102
.00379102
.00379102
.00379102
.00615701
.00473877
.00473877
.00473877
.00663428
.00663428
.00663428
.00701388
.00701388
.00720293
*
Dated: August 9, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E6–13477 Filed 8–15–06; 8:45 am]
BILLING CODE 3410–02–P
.01459542
.00379102
.01459542
.00379102
E:\FR\FM\16AUR1.SGM
16AUR1
]]>Agencies
[Federal Register Volume 71, Number 158 (Wednesday, August 16, 2006)]
[Rules and Regulations]
[Pages 47074-47076]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-13477]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1260
[No. LS-01-06]
Amendment to the Beef Promotion and Research Rules and
Regulations--Final Rule
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends the Beef Promotion and Research Order
(Order) established under the Beef Promotion and Research Act of 1985
(Act) to reduce assessment levels for imported beef and beef products
based on revised determinations of live animal equivalencies and to
update and expand the Harmonized Tariff System (HTS) numbers and
categories, which identify imported live cattle, beef, and beef
products to conform with recent updates in the numbers and categories
used by the U.S. Customs and Border Protection (Customs).
DATES: Effective Date: September 15, 2006.
FOR FURTHER INFORMATION CONTACT: Kenneth R. Payne, Chief, Marketing
Programs Branch, Room 2638-S, Livestock and Seed Program, Agricultural
Marketing Service (AMS), USDA, STOP 0251, 1400 Independence Avenue,
SW., Washington, DC 20250-0251; facsimile 202/720-1125; telephone 202/
720-1115, or by e-mail at Kenneth.Payne@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has waived the review
process required by Executive Order 12866 for this action.
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have a retroactive
effect.
Section 11 of the Act provides that nothing in the Act may be
construed to preempt or supersede any other program relating to beef
promotion organized and operated under the laws of the United States or
any State. There are no administrative proceedings that must be
exhausted prior to any judicial challenge to the provisions of this
rule.
Regulatory Flexibility Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA)(5
[[Page 47075]]
U.S.C. 601 et seq.), the Administrator of AMS has considered the
economic effect of this action on small entities and has determined
that this proposed rule will not have a significant economic impact on
a substantial number of small business entities. The effect of the
Order upon small entities was discussed in the July 18, 1986 Federal
Register [51 FR 26132]. The purpose of RFA is to fit regulatory actions
to the scale of businesses subject to such actions in order that small
businesses will not be unduly burdened.
There are approximately 270 importers who import beef or edible
beef products into the United States and 198 importers who import live
cattle into the United States. The majority of these operations subject
to the Order are considered small businesses under the criteria
established by the Small Business Administration (SBA)[13 CFR 121.201].
SBA defines small agricultural service firms as those having annual
receipts of $6.5 million or less.
The final rule will impose no significant burden on the industry.
It will merely update and expand the HTS numbers and categories to
conform to recent updates in the numbers and categories used by
Customs. This final rule will also adjust the live animal equivalencies
used to determine the amount of assessments collected on imported beef
and beef products. This adjustment reflects an increase in the average
dressed weight of cows slaughtered under Federal inspection that has
occurred since the inception of the Beef Checkoff Program. Accordingly,
the Administrator of AMS has determined that this action will not have
a significant impact on a substantial number of small entities.
Paperwork Reduction Act
In accordance with the Office of Management and Budget (OMB)
regulations [5 CFR part 1320] that implement the Paperwork Reduction
Act of 1995 [44 U.S.C. Chapter 35], the information collection and
recordkeeping requirements contained in the Order and Rules and
Regulations have previously been approved by OMB under OMB control
number 0581-0202 and merged into OMB control number 0581-0093.
Background
The Act authorized the establishment of a national beef promotion
and research program. The final Order was published in the Federal
Register on July 18, 1986, (51 FR 21632) and the collection of
assessments began on October 1, 1986. The program is administered by
the Cattlemen's Beef Promotion and Research Board (Board) appointed by
the Secretary of Agriculture (Secretary) from industry nominations
composed of 104 cattle producers and importers. The program is funded
by a $1-per-head assessment on producer marketing of cattle in the
United States and on imported cattle as well as an equivalent amount on
imported beef and beef products.
Importers pay assessments on imported cattle, beef, and beef
products. Customs collects and remits the assessment to the Board. The
term ``importer'' is defined as ``any person who imports cattle, beef,
or beef products from outside the United States.'' Imported beef or
beef products is defined as ``products which are imported into the
United States which the Secretary determines contain a substantial
amount of beef including those products which have been assigned one or
more of the following numbers in the Tariff Schedule of the United
States.''
In 1989, Customs implemented a new numbering system, the HTS, to
replace the Tariff Schedule of the United States (TSUS) system. The
Department of Agriculture (USDA) updated the TSUS to HTS, in a final
rule, published in the Federal Register on April 20, 1989, (54 FR
15915) to conform with updates made by Customs. Since the inception of
HTS, it has undergone many changes. First, the original 11 digit system
has been replaced with a 10 digit system. Additionally, most of the
categories regarding imported beef and beef products have been
subdivided and the new categories have been assigned HTS numbers. The
purpose of this final rule is to update, expand, and revise the table
found under Sec. 1260.172 (7 CFR 1260.172) to reflect the current HTS
numbers.
As a result of these changes to HTS, there are 20 new categories
that cover imported live cattle subject to assessment compared with the
previous 8 categories. The 30 categories identifying imported beef and
beef products have been expanded to 54 categories.
This final rule simply updates and expands the chart published in
the 1989 final rule to conform with recent changes to the HTS numbering
system and revises the live weight equivalents used to calculate import
assessments. Importers are currently paying the same assessment level
for imported beef and beef products that was established when the Order
was first published in 1986. At that time, the average dressed weight
of cows slaughtered under Federal inspection was determined to be 509
pounds. USDA determined that using the average dressed weight of
domestic cows slaughtered under Federal inspection would be most
suitable because about 90 percent of imported beef and beef products
were similar to domestic cow beef.
The Act requires that assessments on imported beef and beef
products be determined by converting such imports into live animal
equivalents to ascertain the corresponding number of head of cattle.
Carcass weight is the principle factor in calculating live animal
equivalents. Under the Order, the Board may increase or decrease the
level of assessments for imported beef and beef products based upon
revised determination of live animal equivalencies.
Prior to publishing the proposed rule, USDA received two
recommendations concerning importer assessments. The Meat Importers
Council of America (MICA) requested to increase the live animal
equivalency rate that would reduce the amount of assessments collected
from importers of beef and beef products. MICA suggests using the
dressed cow weight for calendar year 2000 to recalculate levels of
assessments. This average would be 579 pounds. In updating the average
dressed cow weight for calendar year 2004, the average would be 614
pounds. The Board recommends using an average dressed cow weight from
1987 to the most current data. The Board states that ``establishing an
average over this period of time takes into account short term highs
and lows due to the cattle cycle, weather effects, and feed prices.''
This average would be 555 pounds.
Comments
On October 5, 2005, USDA published in the Federal Register (70 FR
58095) a proposed rule to amend the Beef Promotion and Research Order
(Order) established under the Beef Promotion and Research Act of 1985
(Act) to reduce assessment levels for imported beef and beef products
based on revised determinations of live animal equivalencies and to
update and expand the HTS numbers and categories, which identify
imported live cattle, beef, and beef products to conform with recent
updates in the numbers and categories used by the Customs.
USDA received in a timely manner two comments, one from the
Executive Director of the Meat Importers Council of America (MICA) and
another from an interested party. The two comments have been posted on
AMS' Web site at https://www.ams.usda.gov/lsg/mpb/rp-beef.htm. The
changes suggested by commenters are discussed below.
[[Page 47076]]
Discussion of Comments
The USDA proposed establishing the average carcass weight using a
5-year weighted average carcass weight of domestic cows. Although MICA
supports the reduction of assessment levels for imported beef and beef
products, MICA contends the basis for determining the assessment should
not be the proposed 5-year weighted average carcass weight of all cows
slaughtered in the U.S. under Federal inspection because imported beef
is derived from a range of classes of stock, including steers, heifers
and bulls as well as cows. The commenter recommended that the formula
be based on a mix of cow and steer weights. Thus, MICA proposed that
the carcass weight used to calculate the assessments on imported beef
be based on a ratio of one-third (1/3) of the 5-year average carcass
weight of steers and two-thirds (2/3) of the 5-year average carcass
weight of cows which would result in an average carcass weight of
approximately 663 pounds. While this does not take into account bulls
and heifers, the commenter feels that the differences in these two
classes would probably balance each other out and, thus, would not
materially affect the calculation.
USDA reviewed total imported beef and veal production on a carcass
weight equivalent to identify the top 10 countries exporting to the
United States in 2005. These countries accounted for more than 99
percent of U.S. beef and veal imports for that year. We then calculated
the average carcass weight of cattle slaughtered in each country for
the years 2000-2004 by dividing total beef production by the total
number of cattle slaughtered. Based on our calculations, the average
carcass weight of these 10 exporting countries was 592 pounds during
this period, which is the same weight published in the proposed rule.
In other words, accounting for all cattle (whether steers, heifers,
cows, or bulls) produced by the leading countries from which the United
States imports beef leads to the same carcass weight equivalent as that
in the proposed rule. Using the recent 5-year average carcass weight of
all domestic cows slaughtered in the U.S. under Federal inspection is
very representative of the average carcass weight of for those
countries importing to the U.S. Consequently, the comment is not
adopted.
While expressing general misgivings concerning the program, the
second commenter suggested that the assessment rate should be increased
to $10 per head. The Act provides that the assessment rate for live
imported cattle be $1 per head. Consequently, this comment is not
adopted.
Accordingly, it is appropriate to use a 5-year average dressed
weight of domestic cows slaughtered under Federal inspection of 592
pounds to calculate assessments on imported beef and beef products.
List of Subjects in 7 CFR part 1260
Administrative practice and procedure, Advertising, Agricultural
research, Marketing agreements, Meat and meat products, Beef, and Beef
products.
0
For the reasons set forth in the preamble, title 7 of the CFR part 1260
is amended as follows:
PART 1260--BEEF PROMOTION AND RESEARCH
0
1. The authority citation for 7 CFR part 1260 continues to read as
follows:
Authority: 7 U.S.C. 2901-2911.
0
2. Paragraph (b)(2) of Sec. 1260.172 is revised to read as follows:
Sec. 1260.172 Assessments.
* * * * *
(b) * * *
(2) The assessment rates for imported cattle, beef, and beef
products are as follows:
Imported Live Cattle
------------------------------------------------------------------------
Assessment
HTS No. rate (head)
------------------------------------------------------------------------
0102.10.0010............................................ $1.00
0102.10.0020............................................ 1.00
0102.10.0030............................................ 1.00
0102.10.0050............................................ 1.00
0102.90.2011............................................ 1.00
0102.90.2012............................................ 1.00
0102.90.4024............................................ 1.00
0102.90.4028............................................ 1.00
0102.90.4034............................................ 1.00
0102.90.4038............................................ 1.00
0102.90.4054............................................ 1.00
0102.90.4058............................................ 1.00
0102.90.4062............................................ 1.00
0102.90.4064............................................ 1.00
0102.90.4066............................................ 1.00
0102.90.4068............................................ 1.00
0102.90.4072............................................ 1.00
0102.90.4074............................................ 1.00
0102.90.4082............................................ 1.00
0102.90.4084............................................ 1.00
------------------------------------------------------------------------
Imported Beef and Beef Products
------------------------------------------------------------------------
Assessment
HTS No. rate per kg
------------------------------------------------------------------------
0201.10.0510............................................ .01459542
0201.10.0590............................................ .00379102
0201.10.1010............................................ .01459542
0201.10.1090............................................ .00379102
0201.10.5010............................................ .01459542
0201.10.5090............................................ .00511787
0201.20.0200............................................ .00530743
0201.20.0400............................................ .00511787
0201.20.0600............................................ .00379102
0201.20.1000............................................ .00530743
0201.20.3000............................................ .00511787
0201.20.5000............................................ .00379102
0201.20.8090............................................ .00379102
0201.30.0200............................................ .00530743
0201.30.0400............................................ .00511787
0201.30.0600............................................ .00379102
0201.30.1000............................................ .00530743
0201.30.3000............................................ .00511787
0201.30.5000............................................ .00511787
0201.30.8090............................................ .00511787
0202.10.0510............................................ .01459542
0202.10.0590............................................ .00379102
0202.10.1010............................................ .01459542
0202.10.1090............................................ .00370102
0202.10.5010............................................ .01459542
0202.10.5090............................................ .00379102
0202.20.0200............................................ .00530743
0202.20.0400............................................ .00511787
0202.20.0600............................................ .00379102
0202.20.1000............................................ .00530743
0202.20.3000............................................ .00511787
0202.20.5000............................................ .00379102
0202.20.8000............................................ .00379102
0202.30.0200............................................ .00530743
0202.30.0400............................................ .00511787
0202.30.0600............................................ .00527837
0202.30.1000............................................ .00530743
0202.30.3000............................................ .00511787
0202.30.5000............................................ .00511787
0202.30.8000............................................ .00379102
0206.10.0000............................................ .00379102
0206.21.0000............................................ .00379102
0206.22.0000............................................ .00379102
0206.29.0000............................................ .00379102
0210.20.0000............................................ .00615701
1601.00.4010............................................ .00473877
1601.00.4090............................................ .00473877
1601.00.6020............................................ .00473877
1602.50.0900............................................ .00663428
1602.50.1020............................................ .00663428
1602.50.1040............................................ .00663428
1602.50.2020............................................ .00701388
1602.50.2040............................................ .00701388
1602.50.6000............................................ .00720293
------------------------------------------------------------------------
* * * * *
Dated: August 9, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E6-13477 Filed 8-15-06; 8:45 am]
BILLING CODE 3410-02-P
