Amendments to the Potato Research and Promotion Plan, 50328-50331 [E6-14108]
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50328
Federal Register / Vol. 71, No. 165 / Friday, August 25, 2006 / Rules and Regulations
be enormous. As discussed previously,
AQI inspectors along the U.S./Canada
border have confiscated numerous
prohibited fruits and other articles that
can harbor pests and diseases.
Interception of infested hosts helps to
minimize the chances that the pests and
diseases will become established in the
United States and prevents the costs
associated with eradicating them.
This rule contains no information
collection requirements (see
‘‘Paperwork Reduction Act’’ below).
Executive Order 12988
This 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 no
retroactive effect; and (3) does not
require administrative proceedings
before parties may file suit in court
challenging this rule.
Paperwork Reduction Act
This interim rule contains no
information collection or recordkeeping
requirements under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.).
List of Subjects
7 CFR Part 319
Coffee, Cotton, Fruits, Imports, Logs,
Nursery stock, Plant diseases and pests,
Quarantine, Reporting and
recordkeeping requirements, Rice,
Vegetables.
7 CFR Part 354
Exports, Government employees,
Imports, Plant diseases and pests,
Quarantine, Reporting and
recordkeeping requirements, Travel and
transportation expenses.
Accordingly, we are amending 7 CFR
parts 319 and 354 as follows:
I
PART 319—FOREIGN QUARANTINE
NOTICES
1. The authority citation for part 319
continues to read as follows:
I
cprice-sewell on PROD1PC66 with RULES
Authority: 7 U.S.C. 450, 7701–7772, and
7781–7786; 21 U.S.C. 136 and 136a; 7 CFR
2.22, 2.80, and 371.3.
§ 319.56–2
[Amended]
I 2. In § 319.56–2, paragraph (c) is
amended by adding the words ‘‘, except
that they are subject to the inspection
and other requirements in § 319.56–6’’
after the word ‘‘subpart’’.
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15:27 Aug 24, 2006
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PART 354—OVERTIME SERVICES
RELATING TO IMPORTS AND
EXPORTS; AND USER FEES
3. The authority citation for part 354
continues to read as follows:
I
Authority: 7 U.S.C. 7701–7772, 7781–7786,
and 8301–8317; 21 U.S.C. 136 and 136a; 49
U.S.C. 80503; 7 CFR 2.22, 2.80, and 371.3.
4. Section 354.3 is amended as
follows:
I a. In paragraph (b)(2)(i), by removing
the words ‘‘other than in Canada’’ both
times they appear.
I b. In paragraph (b)(2)(iv), by adding
the word ‘‘and’’ after the semicolon.
I c. In paragraph (b)(2)(v), by removing
the word ‘‘; and’’ and adding a period
in its place.
I d. By removing paragraph (b)(2)(vi).
I e. In paragraph (c)(1), by revising the
first sentence to read as set forth below.
I f. By removing and reserving
paragraph (c)(2).
I g. In the introductory text of
paragraph (c)(3)(i), by removing the
words ‘‘from Mexico’’.
I h. By removing and reserving
paragraph (d)(2)(i).
I i. In paragraph (d)(4)(i), by removing
the words ‘‘from Mexico’’.
I j. By removing and reserving
paragraphs (e)(2)(i) and (f)(2)(i).
I k. In paragraph (f)(2)(v), by removing
the words ‘‘other than Canada’’.
I l. By revising paragraph (f)(3) to read
as set forth below.
I
§ 354.3 User fees for certain international
services.
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*
*
*
(c) * * *
(1) The driver or other person in
charge of a commercial truck that is
entering the customs territory of the
United States and that is subject to
inspection under part 330 of this
chapter or under 9 CFR, chapter I,
subchapter D, must, upon arrival,
proceed to Customs and pay an AQI
user fee for each arrival, as shown in the
following table: * * *
*
*
*
*
*
(f) * * *
(3) AQI user fees shall be collected
under the following circumstances:
(i) When through tickets or travel
documents are issued indicating travel
to the customs territory of the United
States that originates in any foreign
country; and
(ii) When passengers arrive in the
customs territory of the United States in
transit from a foreign country and are
inspected by APHIS or Customs.
*
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Done in Washington, DC, this 21st day of
August 2006.
Bruce Knight,
Under Secretary for Marketing and Regulatory
Programs.
[FR Doc. E6–14128 Filed 8–24–06; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1207
[Doc. No. FV–05–702 FR]
Amendments to the Potato Research
and Promotion Plan
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: The Department of
Agriculture (USDA) is adopting, as a
final rule, with correcting changes, an
interim final rule to increase the
assessment rate on handlers and
importers of potatoes from 2 cents to 2.5
cents per hundredweight. The increase
is authorized under the Potato Research
and Promotion Plan (Plan). The Plan is
authorized by the Potato Research and
Promotion Act (Act). In order to sustain
the three major programs currently
conducted by the National Potato
Promotion Board (Board), International
Marketing, Domestic Marketing (which
includes retail marketing), and a
nutrition campaign at their present
levels beyond June 2006, additional
revenue is required.
DATES: This rule is effective September
25, 2006.
FOR FURTHER INFORMATION CONTACT:
Jeanette Palmer, Research and
Promotion Branch, Fruit and Vegetable
Programs, AMS, USDA, 1400
Independence Avenue SW., Stop 0244,
Washington, DC 20250–0244; telephone
(202) 720–5976 or fax (202) 205–2800.
SUPPLEMENTARY INFORMATION: This rule
is issued under the Potato Research and
Promotion Plan (Plan) [7 CFR Part
1207], as amended. This rule will
increase the assessment rate by 1⁄2 cent
for handlers and importers. The Plan is
authorized by the Potato Research and
Promotion Act (Act) [7 U.S.C. 2611–
2627].
Executive Order 12988
This rule has been reviewed under the
Executive Order 12988, Civil Justice
Reform. This rule is not intended to
have retroactive effect. This rule will
not preempt any state or local laws,
regulations, or policies unless they
present an irreconcilable conflict with
E:\FR\FM\25AUR1.SGM
25AUR1
Federal Register / Vol. 71, No. 165 / Friday, August 25, 2006 / Rules and Regulations
this rule. The Act provides that
administrative proceedings must be
exhausted before parties may file suit in
court.
Under the Act, a person subject to the
plan may file a petition with the
Secretary of Agriculture (Secretary)
stating that such plan, any provision of
such plan, or any obligation imposed in
connection with such plan is not in
accordance with law; and requesting a
modification of the plan or an
exemption from the plan. Such person
is afforded the opportunity for a hearing
on the petition. After the hearing, the
Secretary will rule on the petition. The
Act provides that the district court of
the United States in any district in
which such person is an inhabitant, or
has principal place of business, has
jurisdiction to review the Secretary’s
ruling on the petition, provided that a
complaint is filed within 20 days after
the date of entry of the ruling.
cprice-sewell on PROD1PC66 with RULES
Executive Order 12866
The Office of Management and Budget
(OMB) has waived the review process
required by Executive Order 12866 for
this action.
Regulatory Flexibility Act and
Paperwork Reduction Act
In accordance with the Regulatory
Flexibility Act (RFA) [5 U.S.C. 601 et
seq.], the Agricultural Marketing Service
has considered the economic impact of
this action on small entities and has
certified that this rule will not have a
significant economic impact on a
substantial number of small entities.
The purpose of the RFA is to fit
regulatory actions to scale of businesses
subject to such action so that small
businesses will not be
disproportionately burdened.
There are approximately 1,353
handlers, 5,223 producers, and 300
importers of potatoes and potato
products who are subject to the
provisions of the Plan. The Small
Business Administration (SBA) defines
small agricultural businesses, which
includes handlers and importers, as
those whose annual receipts are less
than $6.5 million, and small agricultural
producers are defined as those having
annual receipts of no more than
$750,000 annually. Most of the
producers and handlers, and some of
the importers would be classified as
small businesses under the criteria
established by the SBA 13 CFR
121.201].
Currently, potato handlers and
importers pay a mandatory assessment
of 2 cents per hundredweight.
Assessments under the program are
used to fund promotional campaigns
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15:27 Aug 24, 2006
Jkt 208001
and to conduct research in the areas of
U.S. marketing, and international
marketing and to enable the Board to
exercise its duties in accordance with
the Plan. The 2 cents assessment
generates about $8.5 million in annual
revenues. The current assessment
became effective when the Plan was
amended in May 1984, to increase the
maximum assessment rate from 1 cent
per hundredweight to 0.5 percent of the
previous 10-year average price received
by growers. The Plan is administered by
the National Potato Promotion Board
(Board) under USDA supervision.
In order to sustain the three major
programs currently conducted by the
Board, International Marketing,
Domestic Marketing (which includes
retail marketing), and a nutrition
campaign at their present levels beyond
June 2006, additional revenue is
required. The Board approved this
increase in the assessment rate at its
March 19, 2005, annual meeting. This
increase is consistent with section
1207.342(a) of the Plan, which provides
such assessments shall be levied at a
rate fixed by the Secretary which shall
not exceed one-half of one per centum
of the immediate past ten calendar years
United States average price received for
potatoes by growers as reported by the
Department of Agriculture. Further, not
more than one such assessment may be
collected on any potatoes.
The 1⁄2 cent assessment rate increase
will bring in an estimated $1.5 to $2
million in new revenue, depending
upon production levels. For 2005,
domestic production was 420,879,000
hundredweight and imports represented
59,683,000 hundredweight. The new
rate would allow the Board to maintain
its investment in the nutrition campaign
and marketing programs. It is estimated
that the Board would collect
approximately $10 million in
assessments with a 2.5 cent per
hundredweight assessment rate. Any
additional costs should be offset by the
benefits to be derived from the research
and promotion programs. The Board has
determined that the 1⁄2 cent increase in
assessments would cost potato growers
less than one-half of one percent
(0.005%) of total production costs or
approximately $1.75 per acre based on
average yields.
Alternatives were also considered by
the Board, which included cutting back
funding of marketing programs and the
nutrition campaign, or eliminating the
nutrition campaign altogether. All of the
alternatives were rejected by the Board
because it was determined that
continued funding of the marketing
programs and the nutrition campaign
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50329
were necessary to increase the demand
for potatoes.
There are no relevant Federal rules
that duplicate, overlap, or conflict with
this rule.
In accordance with the OMB
regulation [5 CFR Part 1320] which
implements the Paperwork Reduction
Act of 1995 [44 U.S.C. Chapter 35], the
information collection and
recordkeeping requirements that are
imposed by the Plan have been
previously approved under OMB
control number 0581–0093. This rule
does not result in a change to the
information collection and
recordkeeping requirements.
Background
The Plan became effective on March
9, 1972, after a national referendum
among producers. Under the Plan,
handlers and importers are assessed 2
cents per hundredweight. No
assessment shall be levied on potatoes
grown in the 50 States of the United
States by producers of less than 5 acres
of potatoes. Importers pay assessments
on all tablestock potatoes imported for
ultimate human consumption and on all
imported seed potatoes. The program
currently generates about $8.5 million
in annual revenues, which is
administered by the Board under USDA
supervision. The Board administers a
national program of research
development, advertising, and
promotion designed to strengthen
potatoes’ competitive position and to
maintain and expand domestic and
foreign markets for potatoes and potato
products.
In order to sustain the three major
programs being conducted by the Board,
International Marketing, Domestic
Marketing (which includes retail
marketing), and a nutrition campaign at
their present levels beyond June 2006,
additional revenue to the Board is
required. The 1⁄2 cent assessment rate
increase will bring in an estimated $1.5
to $2 million in new revenue,
depending upon production levels. For
2005, domestic production was
420,879,000 hundredweight and
imports represented 59,683,000
hundredweight. The new rate would
allow the Board to maintain its
investment in the nutrition campaign
and marketing programs. It is estimated
that the Board would collect
approximately $10 million in
assessments with a 2.5 cents per
hundredweight assessment rate. Any
additional cost should be offset by the
benefits to be derived from research and
promotion programs.
The Board, whose members represent
all potato producing states as well as
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50330
Federal Register / Vol. 71, No. 165 / Friday, August 25, 2006 / Rules and Regulations
importers, voted to increase the
assessment rate at its March 19, 2005,
annual meeting. Eighty-eight percent of
the Board voted to increase the
assessment rate. The majority of those
that opposed the increase in assessment
rate had a number of reasons, including
a view that a State program is preferable
over a national program and concern
about the impact on growers.
This action will amend the rules and
regulations issued under the Plan. The
rate increase from 2 cents to 2.5 cents
per hundredweight is within the
formula allowed by section 1207.342 (a)
of the Plan, which states the funds to
cover the Board’s expenses shall be
acquired by the levying of assessments
upon handler and importers as
designated in regulations recommended
by the Board and issued by the
Secretary. Such assessments shall be
levied at a rate fixed by the Secretary
which shall not exceed one-half of one
per centum of the immediate past ten
calendar years United States average
price received for potatoes by growers as
reported by the Department of
Agriculture. Further, not more than one
such assessment may be collected on
any potatoes. The average price was
determined to be $5.88 using the years
1994–2003 and one-half of one per
centum is 2.94 cents.
An interim final rule concerning this
action was published in the Federal
Register on March 8, 2006. Copies of the
rule were made available through the
Internet by USDA and the Office of the
Federal Register. That rule provided a
60-day comment period which ended
May 8, 2006. Eight comments were
received.
Six favorable comments were
received. The commenters’ support the
rule for an assessment increase to
sustain the Board’s three major program
areas—International Marketing,
Domestic Marketing (which includes
retail marketing), and a nutrition
campaign. The commenters’ supported
the implementation of the interim final
rule as it was presented.
One unfavorable comment was
received. The commenter recommends a
reduction in spending and not to
increase the assessment rate. The
commenter indicated opposition to any
increase in bureaucratic costs; however,
the Board is industry-funded and no
taxpayers’ dollars are expended on this
program.
Finally, one comment received did
not address the assessment issue.
After consideration of all relevant
material presented including comments,
the Board’s recommendation, and other
information, the interim final rule, as
published in the Federal Register (71
FR 11294) on March 8, 2006, is adopted
as a final rule, with changes. In this
final rule, two corrections are made to
the harmonized tariff schedule codes in
§ 1207.510(b)(3) of the table and the
authority citation also is corrected.
List of Subjects in 7 CFR Part 1207
Administrative practice and
procedure, Advertising, Consumer
information, Marketing agreements,
Potatoes, Promotion, Reporting and
recordkeeping requirements.
I For the reasons set forth in the
preamble, 7 CFR part 1207 is amended
as follows:
1. The authority citation for part 1207
continues to read as follows:
I
Authority: 7 U.S.C. 2611–2627 and 7
U.S.C. 7401.
PART 1207—POTATO RESEARCH
AND PROMOTION PLAN
2. In § 1207.510, paragraphs (a)(1),
(b)(1) and the table immediately
following paragraph (b)(3) are revised to
read as follows:
I
§ 1207.510
Levy of assessments.
(a) * * *
(1) An assessment rate of 2.5 cents per
hundredweight shall be levied on all
potatoes produced within the 50 States
of the United States.
*
*
*
*
*
(b) * * *
(1) An assessment rate of 2.5 cents per
hundredweight shall be levied on all
tablestock potatoes imported into the
United States for ultimate consumption
by humans and all seed potatoes
imported into the United States. An
assessment rate of 2.5 cents per
hundredweight shall be levied on the
fresh weight equivalents of imported
frozen or processed potatoes for
ultimate consumption by humans. The
importer of imported tablestock
potatoes, potato products, or seed
potatoes shall pay the assessment to the
Board through the U.S. Customs Service
and Border Protection at the time of
entry or withdrawal for consumption of
such potatoes and potato products into
the United States.
*
*
*
*
*
(3) * * *
Assessment
Tablestock potatoes, frozen or processed potatoes, and seed potatoes
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cents/cwt
0701.10.0020
0701.10.0040
0701.90.1000
0701.90.5010
0701.90.5020
0701.90.5030
0701.90.5040
0710.10.0000
2004.10.4000
2004.10.8020
2004.10.8040
2005.20.0070
0712.90.3000
1105.10.0000
1105.20.0000
2005.20.0040
2005.20.0020
1108.13.0010
VerDate Aug<31>2005
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15:27 Aug 24, 2006
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25AUR1
2.50
2.50
2.50
2.50
2.50
2.50
2.50
5.00
5.00
5.00
5.00
3.93
17.86
17.86
17.86
17.86
10.20
22.50
cents/kg
0.0551
0.0551
0.0551
0.0551
0.0551
0.0551
0.0551
0.1103
0.1103
0.1103
0.1103
0.0866
0.3936
0.3936
0.3936
0.3936
0.2250
0.4961
Federal Register / Vol. 71, No. 165 / Friday, August 25, 2006 / Rules and Regulations
*
*
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*
*
Dated: August 21, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E6–14108 Filed 8–24–06; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2006–24979; Directorate
Identifier 2006–NM–014–AD; Amendment
39–14738; AD 2006–17–17]
RIN 2120–AA64
Airworthiness Directives; Bombardier
Model DHC–8–100, DHC–8–200, DHC–
8–300, and DHC–8–400 Series
Airplanes
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule.
AGENCY:
SUMMARY: The FAA is adopting a new
airworthiness directive (AD) for certain
Bombardier Model DHC–8–100, DHC–
8–200, DHC–8–300, and DHC–8–400
series airplanes. This AD requires
inspecting the left and right control
column torque tube assemblies to
determine the type of rivets installed
and replacing incorrect or indeterminate
type rivets with the correct type rivets.
This AD results from a report that
incorrect rivets having lower than
required strength were installed on the
control column torque tube during
production. We are issuing this AD to
prevent shear failure of control column
torque tube rivets, which could cause
unexpected decoupling of the elevators
and large unwanted deflection of the
free elevator, and consequent reduced
controllability of the airplane.
DATES: This AD becomes effective
September 29, 2006.
The Director of the Federal Register
approved the incorporation by reference
of certain publications listed in the AD
as of September 29, 2006.
ADDRESSES: You may examine the AD
docket on the Internet at https://
dms.dot.gov or in person at the Docket
Management Facility, U.S. Department
of Transportation, 400 Seventh Street,
SW., Nassif Building, Room PL–401,
Washington, DC.
Contact Bombardier, Inc., Bombardier
Regional Aircraft Division, 123 Garratt
Boulevard, Downsview, Ontario M3K
1Y5, Canada, for service information
identified in this AD.
FOR FURTHER INFORMATION CONTACT:
Richard Beckwith, Aerospace Engineer,
Airframe and Propulsion Branch, ANE–
171, FAA, New York Aircraft
Certification Office, 1600 Stewart
Avenue, suite 410, Westbury, New York
11590; telephone (516) 228–7302; fax
(516) 794–5531.
SUPPLEMENTARY INFORMATION:
50331
Docket Management Facility office
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
The Docket Management Facility office
(telephone (800) 647–5227) is located on
the plaza level of the Nassif Building at
the street address stated in the
ADDRESSES section.
Discussion
The FAA issued a notice of proposed
rulemaking (NPRM) to amend 14 CFR
part 39 to include an AD that would
apply to certain Bombardier Model
DHC–8–100, DHC–8–200, DHC–8–300,
and DHC–8–400 series airplanes. That
NPRM was published in the Federal
Register on June 8, 2006 (71 FR 33270).
That NPRM proposed to require
inspecting the left and right control
column torque tube assemblies to
determine the type of rivets installed
and replacing incorrect or indeterminate
type rivets with the correct type rivets.
Comments
We provided the public the
opportunity to participate in the
development of this AD. We received no
comments on the NPRM or on the
determination of the cost to the public.
Conclusion
We have carefully reviewed the
available data and determined that air
safety and the public interest require
adopting the AD as proposed.
Examining the Docket
Costs of Compliance
You may examine the airworthiness
directive (AD) docket on the Internet at
https://dms.dot.gov or in person at the
The following table provides the
estimated costs for U.S. operators to
comply with this AD.
ESTIMATED COSTS
Work
hours
Action
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Inspection for rivet type ..............................
Rivet replacement, if necessary .................
1
16
Authority for This Rulemaking
Title 49 of the United States Code
specifies the FAA’s authority to issue
rules on aviation safety. Subtitle I,
Section 106, describes the authority of
the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more
detail the scope of the Agency’s
authority.
We are issuing this rulemaking under
the authority described in Subtitle VII,
Part A, Subpart III, Section 44701,
‘‘General requirements.’’ Under that
section, Congress charges the FAA with
promoting safe flight of civil aircraft in
air commerce by prescribing regulations
VerDate Aug<31>2005
15:27 Aug 24, 2006
Jkt 208001
Average labor
rate per hour
$80
80
Parts
$0
50
Cost per
airplane
$80
1,330
for practices, methods, and procedures
the Administrator finds necessary for
safety in air commerce. This regulation
is within the scope of that authority
because it addresses an unsafe condition
that is likely to exist or develop on
products identified in this rulemaking
action.
Regulatory Findings
We have determined that this AD will
not have federalism implications under
Executive Order 13132. This AD will
not have a substantial direct effect on
the States, on the relationship between
the national government and the States,
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Number of
U.S.-registered
airplanes
162
162
Fleet cost
$12,960.
A maximum of $215,460.
or on the distribution of power and
responsibilities among the various
levels of government.
For the reasons discussed above, I
certify that this AD:
(1) Is not a ‘‘significant regulatory
action’’ under Executive Order 12866;
(2) Is not a ‘‘significant rule’’ under
DOT Regulatory Policies and Procedures
(44 FR 11034, February 26, 1979); and
(3) Will not have a significant
economic impact, positive or negative,
on a substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
E:\FR\FM\25AUR1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 165 (Friday, August 25, 2006)]
[Rules and Regulations]
[Pages 50328-50331]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14108]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1207
[Doc. No. FV-05-702 FR]
Amendments to the Potato Research and Promotion Plan
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, with correcting changes, an interim final rule to increase the
assessment rate on handlers and importers of potatoes from 2 cents to
2.5 cents per hundredweight. The increase is authorized under the
Potato Research and Promotion Plan (Plan). The Plan is authorized by
the Potato Research and Promotion Act (Act). In order to sustain the
three major programs currently conducted by the National Potato
Promotion Board (Board), International Marketing, Domestic Marketing
(which includes retail marketing), and a nutrition campaign at their
present levels beyond June 2006, additional revenue is required.
DATES: This rule is effective September 25, 2006.
FOR FURTHER INFORMATION CONTACT: Jeanette Palmer, Research and
Promotion Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue SW., Stop 0244, Washington, DC 20250-0244;
telephone (202) 720-5976 or fax (202) 205-2800.
SUPPLEMENTARY INFORMATION: This rule is issued under the Potato
Research and Promotion Plan (Plan) [7 CFR Part 1207], as amended. This
rule will increase the assessment rate by \1/2\ cent for handlers and
importers. The Plan is authorized by the Potato Research and Promotion
Act (Act) [7 U.S.C. 2611-2627].
Executive Order 12988
This rule has been reviewed under the Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule will not preempt any state or local laws, regulations, or
policies unless they present an irreconcilable conflict with
[[Page 50329]]
this rule. The Act provides that administrative proceedings must be
exhausted before parties may file suit in court.
Under the Act, a person subject to the plan may file a petition
with the Secretary of Agriculture (Secretary) stating that such plan,
any provision of such plan, or any obligation imposed in connection
with such plan is not in accordance with law; and requesting a
modification of the plan or an exemption from the plan. Such person is
afforded the opportunity for a hearing on the petition. After the
hearing, the Secretary will rule on the petition. The Act provides that
the district court of the United States in any district in which such
person is an inhabitant, or has principal place of business, has
jurisdiction to review the Secretary's ruling on the petition, provided
that a complaint is filed within 20 days after the date of entry of the
ruling.
Executive Order 12866
The Office of Management and Budget (OMB) has waived the review
process required by Executive Order 12866 for this action.
Regulatory Flexibility Act and Paperwork Reduction Act
In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C.
601 et seq.], the Agricultural Marketing Service has considered the
economic impact of this action on small entities and has certified that
this rule will not have a significant economic impact on a substantial
number of small entities. The purpose of the RFA is to fit regulatory
actions to scale of businesses subject to such action so that small
businesses will not be disproportionately burdened.
There are approximately 1,353 handlers, 5,223 producers, and 300
importers of potatoes and potato products who are subject to the
provisions of the Plan. The Small Business Administration (SBA) defines
small agricultural businesses, which includes handlers and importers,
as those whose annual receipts are less than $6.5 million, and small
agricultural producers are defined as those having annual receipts of
no more than $750,000 annually. Most of the producers and handlers, and
some of the importers would be classified as small businesses under the
criteria established by the SBA 13 CFR 121.201].
Currently, potato handlers and importers pay a mandatory assessment
of 2 cents per hundredweight. Assessments under the program are used to
fund promotional campaigns and to conduct research in the areas of U.S.
marketing, and international marketing and to enable the Board to
exercise its duties in accordance with the Plan. The 2 cents assessment
generates about $8.5 million in annual revenues. The current assessment
became effective when the Plan was amended in May 1984, to increase the
maximum assessment rate from 1 cent per hundredweight to 0.5 percent of
the previous 10-year average price received by growers. The Plan is
administered by the National Potato Promotion Board (Board) under USDA
supervision.
In order to sustain the three major programs currently conducted by
the Board, International Marketing, Domestic Marketing (which includes
retail marketing), and a nutrition campaign at their present levels
beyond June 2006, additional revenue is required. The Board approved
this increase in the assessment rate at its March 19, 2005, annual
meeting. This increase is consistent with section 1207.342(a) of the
Plan, which provides such assessments shall be levied at a rate fixed
by the Secretary which shall not exceed one-half of one per centum of
the immediate past ten calendar years United States average price
received for potatoes by growers as reported by the Department of
Agriculture. Further, not more than one such assessment may be
collected on any potatoes.
The \1/2\ cent assessment rate increase will bring in an estimated
$1.5 to $2 million in new revenue, depending upon production levels.
For 2005, domestic production was 420,879,000 hundredweight and imports
represented 59,683,000 hundredweight. The new rate would allow the
Board to maintain its investment in the nutrition campaign and
marketing programs. It is estimated that the Board would collect
approximately $10 million in assessments with a 2.5 cent per
hundredweight assessment rate. Any additional costs should be offset by
the benefits to be derived from the research and promotion programs.
The Board has determined that the \1/2\ cent increase in assessments
would cost potato growers less than one-half of one percent (0.005%) of
total production costs or approximately $1.75 per acre based on average
yields.
Alternatives were also considered by the Board, which included
cutting back funding of marketing programs and the nutrition campaign,
or eliminating the nutrition campaign altogether. All of the
alternatives were rejected by the Board because it was determined that
continued funding of the marketing programs and the nutrition campaign
were necessary to increase the demand for potatoes.
There are no relevant Federal rules that duplicate, overlap, or
conflict with this rule.
In accordance with the OMB regulation [5 CFR Part 1320] which
implements the Paperwork Reduction Act of 1995 [44 U.S.C. Chapter 35],
the information collection and recordkeeping requirements that are
imposed by the Plan have been previously approved under OMB control
number 0581-0093. This rule does not result in a change to the
information collection and recordkeeping requirements.
Background
The Plan became effective on March 9, 1972, after a national
referendum among producers. Under the Plan, handlers and importers are
assessed 2 cents per hundredweight. No assessment shall be levied on
potatoes grown in the 50 States of the United States by producers of
less than 5 acres of potatoes. Importers pay assessments on all
tablestock potatoes imported for ultimate human consumption and on all
imported seed potatoes. The program currently generates about $8.5
million in annual revenues, which is administered by the Board under
USDA supervision. The Board administers a national program of research
development, advertising, and promotion designed to strengthen
potatoes' competitive position and to maintain and expand domestic and
foreign markets for potatoes and potato products.
In order to sustain the three major programs being conducted by the
Board, International Marketing, Domestic Marketing (which includes
retail marketing), and a nutrition campaign at their present levels
beyond June 2006, additional revenue to the Board is required. The \1/
2\ cent assessment rate increase will bring in an estimated $1.5 to $2
million in new revenue, depending upon production levels. For 2005,
domestic production was 420,879,000 hundredweight and imports
represented 59,683,000 hundredweight. The new rate would allow the
Board to maintain its investment in the nutrition campaign and
marketing programs. It is estimated that the Board would collect
approximately $10 million in assessments with a 2.5 cents per
hundredweight assessment rate. Any additional cost should be offset by
the benefits to be derived from research and promotion programs.
The Board, whose members represent all potato producing states as
well as
[[Page 50330]]
importers, voted to increase the assessment rate at its March 19, 2005,
annual meeting. Eighty-eight percent of the Board voted to increase the
assessment rate. The majority of those that opposed the increase in
assessment rate had a number of reasons, including a view that a State
program is preferable over a national program and concern about the
impact on growers.
This action will amend the rules and regulations issued under the
Plan. The rate increase from 2 cents to 2.5 cents per hundredweight is
within the formula allowed by section 1207.342 (a) of the Plan, which
states the funds to cover the Board's expenses shall be acquired by the
levying of assessments upon handler and importers as designated in
regulations recommended by the Board and issued by the Secretary. Such
assessments shall be levied at a rate fixed by the Secretary which
shall not exceed one-half of one per centum of the immediate past ten
calendar years United States average price received for potatoes by
growers as reported by the Department of Agriculture. Further, not more
than one such assessment may be collected on any potatoes. The average
price was determined to be $5.88 using the years 1994-2003 and one-half
of one per centum is 2.94 cents.
An interim final rule concerning this action was published in the
Federal Register on March 8, 2006. Copies of the rule were made
available through the Internet by USDA and the Office of the Federal
Register. That rule provided a 60-day comment period which ended May 8,
2006. Eight comments were received.
Six favorable comments were received. The commenters' support the
rule for an assessment increase to sustain the Board's three major
program areas--International Marketing, Domestic Marketing (which
includes retail marketing), and a nutrition campaign. The commenters'
supported the implementation of the interim final rule as it was
presented.
One unfavorable comment was received. The commenter recommends a
reduction in spending and not to increase the assessment rate. The
commenter indicated opposition to any increase in bureaucratic costs;
however, the Board is industry-funded and no taxpayers' dollars are
expended on this program.
Finally, one comment received did not address the assessment issue.
After consideration of all relevant material presented including
comments, the Board's recommendation, and other information, the
interim final rule, as published in the Federal Register (71 FR 11294)
on March 8, 2006, is adopted as a final rule, with changes. In this
final rule, two corrections are made to the harmonized tariff schedule
codes in Sec. 1207.510(b)(3) of the table and the authority citation
also is corrected.
List of Subjects in 7 CFR Part 1207
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Potatoes, Promotion, Reporting and
recordkeeping requirements.
0
For the reasons set forth in the preamble, 7 CFR part 1207 is amended
as follows:
0
1. The authority citation for part 1207 continues to read as follows:
Authority: 7 U.S.C. 2611-2627 and 7 U.S.C. 7401.
PART 1207--POTATO RESEARCH AND PROMOTION PLAN
0
2. In Sec. 1207.510, paragraphs (a)(1), (b)(1) and the table
immediately following paragraph (b)(3) are revised to read as follows:
Sec. 1207.510 Levy of assessments.
(a) * * *
(1) An assessment rate of 2.5 cents per hundredweight shall be
levied on all potatoes produced within the 50 States of the United
States.
* * * * *
(b) * * *
(1) An assessment rate of 2.5 cents per hundredweight shall be
levied on all tablestock potatoes imported into the United States for
ultimate consumption by humans and all seed potatoes imported into the
United States. An assessment rate of 2.5 cents per hundredweight shall
be levied on the fresh weight equivalents of imported frozen or
processed potatoes for ultimate consumption by humans. The importer of
imported tablestock potatoes, potato products, or seed potatoes shall
pay the assessment to the Board through the U.S. Customs Service and
Border Protection at the time of entry or withdrawal for consumption of
such potatoes and potato products into the United States.
* * * * *
(3) * * *
------------------------------------------------------------------------
Assessment
Tablestock potatoes, frozen or processed -------------------------
potatoes, and seed potatoes cents/cwt cents/kg
------------------------------------------------------------------------
0701.10.0020.................................. 2.50 0.0551
0701.10.0040.................................. 2.50 0.0551
0701.90.1000.................................. 2.50 0.0551
0701.90.5010.................................. 2.50 0.0551
0701.90.5020.................................. 2.50 0.0551
0701.90.5030.................................. 2.50 0.0551
0701.90.5040.................................. 2.50 0.0551
0710.10.0000.................................. 5.00 0.1103
2004.10.4000.................................. 5.00 0.1103
2004.10.8020.................................. 5.00 0.1103
2004.10.8040.................................. 5.00 0.1103
2005.20.0070.................................. 3.93 0.0866
0712.90.3000.................................. 17.86 0.3936
1105.10.0000.................................. 17.86 0.3936
1105.20.0000.................................. 17.86 0.3936
2005.20.0040.................................. 17.86 0.3936
2005.20.0020.................................. 10.20 0.2250
1108.13.0010.................................. 22.50 0.4961
------------------------------------------------------------------------
[[Page 50331]]
* * * * *
Dated: August 21, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E6-14108 Filed 8-24-06; 8:45 am]
BILLING CODE 3410-02-P
