Change in Disease Status of Namibia With Regard to Foot-and-Mouth Disease and Rinderpest, 62198-62201 [E6-17776]
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Federal Register / Vol. 71, No. 205 / Tuesday, October 24, 2006 / Rules and Regulations
net U.S. imports) in 2004 totaled about
39,700 metric tons, valued at $42.7
million. These totals exclude U.S.
production that may have taken place
outside of San Luis Obispo and Santa
Barbara Counties.
If we include the 15 percent of
unreported U.S. production of fresh
garden peas thought to occur outside of
the two California counties, then the
2004 domestic supply would total about
42,800 metric tons, with roughly 65
percent imported and 35 percent
supplied by U.S. producers.
U.S. entities that could be affected by
this final rule are domestic producers of
fresh garden peas and wholesalers who
import fresh garden peas. Businesses
producing green peas and snow peas are
classified in the North American
Industry Classification System (NAICS)
within the category of Other Vegetable
(except Potato) and Melon Farming
(NAICS code 111219). The Small
Business Administration’s (SBA) small
entity definition for these producers is
annual receipts of not more than
$750,000. Firms that would import
fresh, shelled garden peas from Kenya
are defined as small entities if they have
100 or fewer employees (NAICS code
424480, Fresh Fruit and Vegetable
Merchant Wholesalers).3
In general, firms engaged in
production or importation of
agricultural commodities are
predominantly small. We believe that
most if not all of the businesses affected
by this final rule would be small.
We do not know the number of U.S.
producers of fresh garden peas.
According to the 2002 Census of
Agriculture for California Counties,
there were 327 vegetable farms in San
Luis Obispo and Santa Barbara
Counties, the two counties for which
there are published fresh garden pea
production data. We do not know how
many of these vegetable farms produce
fresh garden peas. Also, we do not know
their size, but in general, such entities
are predominantly small. As noted
above, we asked for this type of
information in our proposed rule and
did not receive any comments.
This rule contains various
recordkeeping requirements, which
were described in our proposed rule,
and which have been approved by the
Office of Management and Budget (see
‘‘Paperwork Reduction Act’’ below).
3 The wholesale sector comprises two types of
wholesalers: Those that sell goods on their own
account and those that arrange sales and purchases
for others for a commission or fee. Importers are
included in both cases.
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Executive Order 12988
§ 319.56–2bb Conditions governing the
entry of shelled garden peas from Kenya.
This final rule allows shelled garden
peas to be imported into the United
States from Kenya. State and local laws
and regulations regarding shelled
garden peas imported under this rule
will be preempted while the peas are in
foreign commerce. Fresh fruits and
vegetables are generally imported for
immediate distribution and sale to the
consuming public, and remain in
foreign commerce until sold to the
ultimate consumer. The question of
when foreign commerce ceases in other
cases must be addressed on a case-bycase basis. No retroactive effect will be
given to this rule, and this rule will not
require administrative proceedings
before parties may file suit in court
challenging this rule.
Garden peas (Pisum sativum) may be
imported into the continental United
States from Kenya only under the
following conditions:
(a) The peas must be shelled from the
pod.
(b) The peas must be washed in
disinfectant water at 3 to 5 °C
containing 50 ppm chlorine.
(c) Each shipment of peas must be
accompanied by a phytosanitary
certificate of inspection issued by the
national plant protection organization of
Kenya bearing the following additional
declaration: ‘‘These peas have been
shelled and washed in accordance with
7 CFR 319.56–2bb and have been
inspected and found free of pests.’’
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.,) the information collection or
recordkeeping requirements included in
this rule have been approved by the
Office of Management and Budget
(OMB) under OMB control number
0579–0302.
(Approved by the Office of Management and
Budget under control number 0579–0302)
Done in Washington, DC, this 18th day of
October 2006.
Kevin Shea,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. E6–17774 Filed 10–23–06; 8:45 am]
BILLING CODE 3410–34–P
E-Government Act Compliance
DEPARTMENT OF AGRICULTURE
The Animal and Plant Health
Inspection Service is committed to
compliance with the E-Government Act
to promote the use of the Internet and
other information technologies, to
provide increased opportunities for
citizen access to Government
information and services, and for other
purposes. For information pertinent to
E-Government Act compliance related
to this rule, please contact Mrs. Celeste
Sickles, APHIS’ Information Collection
Coordinator, at (301) 734–7477.
Animal and Plant Health Inspection
Service
List of Subjects in 7 CFR Part 319
SUMMARY: We are amending the
regulations to add Namibia, except the
portion of the country north of the
Veterinary Cordon Fence (VCF), to the
list of regions that are considered free of
foot-and-mouth disease (FMD), and to
add the entire country to the list of
regions that are considered free of
rinderpest. We are taking this action
because we have determined that the
region in Namibia south of the VCF is
now free of FMD and the entire country
is free of rinderpest. We are also adding
Namibia, except the region north of the
VCF, to the list of FMD- and rinderpestfree regions that are subject to certain
import restrictions on meat and other
animal products because of their
proximity to or trading relationships
with rinderpest- or FMD-affected
regions. This action relieves certain
Coffee, Cotton, Fruits, Imports, Logs,
Nursery stock, Plant diseases and pests,
Quarantine, Reporting and
recordkeeping requirements, Rice,
Vegetables.
Accordingly, we are amending 7 CFR
part 319 as follows:
I
PART 319—FOREIGN QUARANTINE
NOTICES
1. The authority citation for part 319
continues to read as follows:
I
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.
I 2. A new § 319.56–2bb is added to
read as follows:
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9 CFR Part 94
[Docket No. APHIS–2006–0037]
Change in Disease Status of Namibia
With Regard to Foot-and-Mouth
Disease and Rinderpest
Animal and Plant Health
Inspection Service, USDA.
ACTION: Final rule.
AGENCY:
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restrictions due to FMD and rinderpest
on the importation into the United
States of certain live animals and animal
products from all regions of Namibia
except the region north of the VCF.
However, because we consider Namibia
to be affected with African swine fever,
classical swine fever, and swine
vesicular disease, the importation of live
swine and pork and pork products will
continue to be restricted. In addition,
because we consider Namibia to be
affected with other animal diseases that
are exotic to the United States, the
importation of live ruminants and
germplasm will also continue to be
restricted. These actions will update the
disease status of Namibia with regard to
FMD and rinderpest while continuing to
protect the United States from an
introduction of those diseases by
providing additional requirements for
any meat and meat products imported
into the United States from Namibia.
DATES: Effective Date: November 24,
2006.
Mr.
Javier Vargas, Animal Scientist,
Regionalization Evaluation Services
Staff, National Center for Import and
Export, VS, APHIS, 4700 River Road,
Unit 38, Riverdale, MD 20737–1231;
(301) 734–0756.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
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Background
The regulations in 9 CFR part 94
(referred to below as the regulations)
govern the importation of certain
animals and animal products into the
United States in order to prevent the
introduction of various diseases,
including rinderpest, foot-and-mouth
disease (FMD), African swine fever,
classical swine fever, and swine
vesicular disease. These are dangerous
and destructive communicable diseases
of ruminants and swine. Section 94.1 of
the regulations lists regions of the world
that are declared free of rinderpest or
free of both rinderpest and FMD.
Rinderpest or FMD exists in all other
parts of the world not listed. Section
94.11 of the regulations lists regions of
the world that have been determined to
be free of rinderpest and FMD, but that
are subject to certain restrictions
because of their proximity to or trading
relationships with rinderpest- or FMDaffected regions.
On June 15, 2006, we published in the
Federal Register (71 FR 34537–34549,
Docket No. APHIS–2006–0037) a
proposal 1 to amend the regulations by
1 To
view the proposed rule, go to https://
www.regulations.gov, click on the ‘‘Advanced
Search’’ tab, and select ‘‘Docket Search.’’ In the
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recognizing the entire country of
Namibia as rinderpest-free and all of
Namibia except the region north of the
Veterinary Cordon Fence (VCF) as free
of FMD. We also proposed to add
Namibia, except the region north of the
VCF, to the list of FMD- and rinderpestfree regions that are subject to certain
import restrictions on meat and other
animal products because of their
proximity to or trading relationships
with rinderpest- or FMD-affected
regions. In our proposal, we noted that,
because we consider Namibia to be
affected with African swine fever,
classical swine fever, and swine
vesicular disease, the importation of live
swine and pork and pork products
would continue to be restricted. In
addition, because we consider Namibia
to be affected with other animal diseases
that are exotic to the United States, the
importation of live ruminants and
germplasm would also continue to be
restricted.
We solicited comments concerning
our proposal for 60 days ending August
14, 2006. We did not receive any
comments. Therefore, for the reasons
given in the proposed rule, we are
adopting the proposed rule as a final
rule, without change.
Executive Order 12866 and Regulatory
Flexibility Act
This rule has been reviewed under
Executive Order 12866. For this action,
the Office of Management and Budget
has waived its review under Executive
Order 12866.
We are amending the regulations in
§ 94.1 to list Namibia as a region free of
rinderpest and the region of Namibia
south of the VCF as a region free of
FMD. However, since Namibia borders
on and trades with regions that the
United States does not recognize as free
of FMD and because its importation
standards are less stringent than those of
the United States, we are also listing the
region of Namibia south of the VCF in
§ 94.11 as a region subject to the
additional certification requirements of
that section.
It should be noted that Namibia is not
currently eligible to export ruminant
meat products to the United States
under the regulations of the United
States Department of Agriculture’s Food
Safety Inspection Service (FSIS); there
would, therefore, be no economic effects
on U.S. entities until establishments in
Namibia were approved to export
ruminant meat and other products to the
Docket ID field, enter APHIS–2006–0037, then click
‘‘Submit.’’ Clicking on the Docket ID link in the
search results page will produce a list of all
documents in the docket.
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62199
United States. The following analysis
examines the potential economic
impacts of the changes in the
regulations that could occur if
establishments in Namibia were
approved to export under the FSIS
regulations.
Namibia produces and internationally
trades in beef, sheep, goat, and game
meat. Namibia produced 134 million
pounds of beef in 2004 and exported an
average of 59.2 million pounds of beef
and veal per year between 1994 and
2003. The country has established
trading relationships with the Republic
of South Africa and several western
European countries. Namibia also
produced 29.6 million pounds of
mutton, lamb, and goat meat in 2003
and exported an average of 5.73 million
pounds per year between 1994 and
2003, with most exports going to the
Republic of South Africa. Namibia
produced 8.8 million pounds of game
meat in 2003.
Namibia’s agricultural trade with the
United States is small. In 2003, Namibia
exported agricultural products worth a
total $199,000, of which $21,000 was for
hides and skins, and imported $5.443
million worth of agricultural products,
of which $40,000 was for beef and veal.
(Sources: FAO, FAOSTAT, 2004; UN/
FAO, FAOSTAT Data, 2004; Hilda
Hampweya, April 2005, personal
communication, Namibia Division of
Trade and Statistics.)
Possible economic effects of imports
from Namibia would differ for beef and
for sheep and goat meat imports. For
beef imports, approximately 22 million
pounds of beef could be imported
annually from Namibia as a result of
this rule (again, assuming FSIS
approval) based on data collected from
the Central Bureau of Statistics-Trade
Statistics Division of Namibia. Based on
10-year average U.S. domestic supply,
an import of about 22 million pounds of
beef would result in a price decrease of
less than $0.002 per pound at the
wholesale level. If 50 percent of
Namibia’s 10-year average beef exports
(29.6 million pounds) were diverted to
the U.S. market, the result would be a
price decline of only $0.0024 per pound
(table 1).
As for sheep and goats, the estimated
potential exports to the United States of
these meats are about 15.43 million
pounds per year according to data
collected from the Central Bureau of
Statistics-Trade Statistics Division of
Namibia. If this supply were realized,
U.S. sheep and goat meat prices could
decline and sheep producers could be
negatively affected, as the above figure
represents about 4.35 percent of U.S.
domestic supply. This could result in a
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Federal Register / Vol. 71, No. 205 / Tuesday, October 24, 2006 / Rules and Regulations
price decline of $0.07 per pound (table
1). However, it is questionable whether
Namibia would have the capacity to
export this amount and maintain its
trade with its established South African
and European markets. Although several
markets in the European Union are
accessible to Namibia, the Republic of
South Africa continues to be its major
trading partner. Namibia exported 15.66
million pounds of sheep and goat meat
to all countries in 2003, so to meet this
goal of 15.43 million pounds exported
to the United States, nearly all of the
current exports would have to be
diverted. Between 1994 and 2003,
Namibian exports of sheep and goats
have fluctuated, with a negative export
growth rate in every year except for
four: 1995, 1998, 1999, and 2001. The
impact is not as large when based on the
10-year average quantity exported of
5.73 million pounds. Assuming this
level of export to the United States, the
estimated decline in price is between
$0.02 and $0.03 per pound.
TABLE 1.—THE IMPACT OF THE IMPORTATION OF BEEF, SHEEP, AND GOAT MEAT FROM NAMIBIA TO THE UNITED STATES
Beef
Percentage diverted to U.S. market 1
1 The
Change in
price (%)
Million
pounds
10 .....................................................
20 .....................................................
40 .....................................................
50 .....................................................
Designated .......................................
Sheep and goat meat
5.92
11.84
23.68
29.6
2 22.05
Decline in
price
(cents/
pound)
Domestic
producer
loss (millions of $)
¥0.0291
¥0.0582
¥0.1164
¥0.1454
¥0.1083
¥0.0483
¥0.0966
¥0.1932
¥0.2414
¥0.1799
¥11.902
¥23.795
¥47.586
¥59.479
¥44.309
Million
pounds
0.573
1.146
2.293
2.865
2 15.43
Change in
price (%)
Decline in
price
(cents/
pound)
Domestic
producer
loss (millions of $)
¥0.231
¥0.461
¥0.922
¥1.153
¥6.209
¥0.261
¥0.521
¥1.042
¥1.303
¥7.016
¥0.435
¥0.871
¥1.742
¥2.177
¥11.725
percentages are based on the 10-year average exports: 59.2 million pounds for beef and 5.73 million pounds for sheep and goat meat.
the estimated amount indicated by Namibian agricultural specialists and the industry as being available for export to the United
2 Denotes
States.
The impacts depicted in table 1 are
further considered in terms of effects for
large and small entities in table 2 (beef
producers) and table 3 (sheep and goat
producers). In each case, impacts at
various import levels are apportioned
between large and small establishments
by inventory share, according to the
2002 Census of Agriculture. Average
effects per establishment are calculated
based on numbers of large and small
establishments with reported sales
(2002 Census of Agriculture). As shown
in table 2, if Namibia were to divert to
the United States 22.05 million pounds
of beef exports per year, as projected by
that country’s agricultural specialists,
the average annual decline in revenue
for U.S. small entities would be about
$28. Similarly, if 15.43 million pounds
of sheep and goat meat exports per year
were diverted to the United States, as
projected by Namibia, the average
annual decline in revenue for U.S. small
entities would be about $108.
TABLE 2.—POTENTIAL EFFECTS FOR LARGE AND SMALL BEEF CATTLE PRODUCERS
Percentage diverted to the U.S.
market 1
U.S. producer
revenue loss
(millions of $)
Large 2
Revenue loss
(millions of $)
¥11.902
¥23.795
¥47.586
¥59.479
¥44.309
10 .............................................................
20 .............................................................
40 .............................................................
50 .............................................................
Designated ...............................................
Small 2
Average
revenue loss ($)
¥5.571
¥11.138
¥22.275
¥27.642
¥20.741
Revenue loss
(millions of $)
¥860
¥1,719
¥3,437
¥4,265
¥3,200
¥6.331
¥12.657
¥25.311
¥31.637
¥23.568
Average
revenue loss ($)
¥8
¥15
¥30
¥38
¥28
1 The
percentages are based on the 10-year average exports: 59.2 million pounds for beef and 5.73 million pounds for sheep and goat meat.
losses to large and small establishments are distributed according to inventory share (46.81 percent for large and 53.19 percent for
small establishments). Averaged revenue losses are calculated by dividing by the number of establishments (845,490 and 6,481 for small and
large establishments, respectively).
2 Revenue
TABLE 3.—POTENTIAL EFFECTS FOR LARGE AND SMALL SHEEP AND GOAT PRODUCERS
Large 2
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Percentage diverted to the U.S. market 1
U.S. producer
revenue loss
(millions of $)
Average
revenue loss
($)
Revenue loss
(millions of $)
¥0.435
¥0.871
¥1.742
¥2.177
¥11.725
10 .............................................................
20 .............................................................
40 .............................................................
50 .............................................................
Designated ...............................................
Small 2
¥0.114
¥0.229
¥0.458
¥0.573
¥3.084
Revenue loss
(millions of $)
¥765
¥1,537
¥3,074
¥3,846
¥20,698
¥0.321
¥0.642
¥1.284
¥1.604
¥8.641
1 The
Average
revenue loss
($)
¥4
¥8
¥16
¥20
¥108
percentages are based on the 10-year average exports: 59.2 million pounds for beef and 5.73 million pounds for sheep and goat meat.
losses to large and small establishments are distributed according to inventory share (26.3 percent for large and 73.7 percent for
small establishments). Average revenue losses are calculated by dividing by the number of establishments (80,443 and 149 for small and large
establishments, respectively).
2 Revenue
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Federal Register / Vol. 71, No. 205 / Tuesday, October 24, 2006 / Rules and Regulations
According to the size standards
established by the Small Business
Administration (SBA) for livestock and
animal specialties, producers of cattle
and calves (North American Industry
Classification System [NAICS] code
112111), game animals (NAICS 112990),
sheep (NAICS 112410), and goats
(NAICS 112420) with not more than
$750,000 annual sales qualify as small
entities. Based on data from the 2002
Census of Agriculture, 851,971
operations in the U.S. raised and sold 73
million cattle and calves in 2002. Small
operations (over 99 percent of the farms)
had an average of 68 cattle and an
average income of $24,067, well below
the SBA criterion of $750,000 in annual
sales for businesses primarily engaged
in cattle farming. Large operations had
an annual income of $3,821,440.
Similarly, over 99 percent of sheep and
goat producers (80,443) are small. Small
sheep and lamb producers had an
average income of $7,520, while large
ones had an average income of $1.042
million.
Meat processing entities (NAICS
311612), and meat and meat product
merchant wholesalers (NAICS 424470)
may be affected by this rule (Source:
U.S. Census Bureau, 2002 Economic
Census, Wholesale Trade-Subject Series,
August 2006). Under SBA standards,
meat processing establishments with no
more than 500 employees and meat and
meat product wholesalers with no more
than 100 employees are considered
small. In 2002, there were 1,335
companies in the United States that
processed and sold meat. More than 97
percent of these establishments are
considered to be small entities and had
average sales of $15.4 million, while
large meat processors had average sales
of $188 million. In 2002, there were
2,535 meat and meat product
wholesalers in the United States.
(Source: SBA and 2002 Economic
Census.) Of these establishments, 2,456
(97 percent) employed not more than
100 employees and are, thus, considered
small by SBA standards. Small
wholesalers had average sales of $9.3
million, while large entities had average
sales of $131 million.2
The only alternative to the rule would
involve not changing the current
regulations regarding the importation of
beef, sheep, and goat meat and game
meat from Namibia. This alternative
would not be appropriate in light of the
findings of our risk analysis and our
conclusion that the Namibian
government has the laws, policies, and
infrastructure to detect, respond to, and
eliminate any reoccurrence of FMD. The
rule provides the safeguarding measures
appropriate to the animal disease risk
associated with importation of this type
of animal product. The rule also
enhances a positive trade environment
between Namibia and the United States.
We note again that Namibia is not
currently eligible to export ruminant
meat products to the United States
under the FSIS regulations cited earlier
in this document; there would,
therefore, be no economic effects on
U.S. entities until establishments in
Namibia were approved to export
ruminant meat and other products to the
United States.
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 12372
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 in conflict 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 final 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 in 9 CFR Part 94
Animal diseases, Imports, Livestock,
Meat and meat products, Milk, Poultry
and poultry products, Reporting and
recordkeeping requirements.
Accordingly, we are amending 9 CFR
part 94 as follows:
2 U.S. Census Bureau, 2002 Economic Census:
Manufacturing-Industries Series, Wholesale TradeSubject Series and Transportation and
Warehousing-Subject Series, Issued December 2005.
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PART 94—RINDERPEST, FOOT-ANDMOUTH DISEASE, FOWL PEST (FOWL
PLAGUE), EXOTIC NEWCASTLE
DISEASE, AFRICAN SWINE FEVER,
CLASSICAL SWINE FEVER, AND
BOVINE SPONGIFORM
ENCEPHALOPATHY: PROHIBITED
AND RESTRICTED IMPORTATIONS
1. The authority citation for part 94
continues to read as follows:
I
Authority: 7 U.S.C. 450, 7701–7772, 7781–
7786, and 8301–8317; 21 U.S.C. 136 and
136a; 31 U.S.C. 9701; 7 CFR 2.22, 2.80, and
371.4.
§ 94.1
[Amended]
2. Section 94.1 is amended as follows:
a. In paragraph (a)(2), by adding the
words ‘‘Namibia (excluding the region
north of the Veterinary Cordon Fence),’’
after the word ‘‘Mexico,’’.
I b. In paragraph (a)(3), by removing the
words ‘‘The Republic’’ and adding the
words ‘‘Namibia and the Republic’’ in
their place.
I
I
§ 94.11
[Amended]
3. In § 94.11, paragraph (a) is amended
by adding the words ‘‘Namibia
(excluding the region north of the
Veterinary Cordon Fence),’’ before the
words ‘‘The Netherlands’’.
I
This program/activity is listed in the
Catalog of Federal Domestic Assistance
under No. 10.025 and is subject to
Executive Order 12372, which requires
intergovernmental consultation with
State and local officials. (See 7 CFR part
3015, subpart V.)
I
62201
Done in Washington, DC, this 18th day of
October 2006.
Kevin Shea,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. E6–17776 Filed 10–23–06; 8:45 am]
BILLING CODE 3410–34–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Regulation D; Docket No. R–1268]
Reserve Requirements of Depository
Institutions
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
AGENCY:
SUMMARY: The Board is amending
Regulation D, Reserve Requirements of
Depository Institutions, to reflect the
annual indexing of the reserve
requirement exemption amount and the
low reserve tranche for 2007. The
Regulation D amendments set the
amount of total reservable liabilities of
each depository institution that is
subject to a zero percent reserve
requirement in 2007 at $8.5 million, up
from $7.8 million in 2006. This amount
is known as the reserve requirement
exemption amount. The Regulation D
amendment also sets the amount of net
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]]>Agencies
[Federal Register Volume 71, Number 205 (Tuesday, October 24, 2006)]
[Rules and Regulations]
[Pages 62198-62201]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-17776]
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DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
9 CFR Part 94
[Docket No. APHIS-2006-0037]
Change in Disease Status of Namibia With Regard to Foot-and-Mouth
Disease and Rinderpest
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Final rule.
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SUMMARY: We are amending the regulations to add Namibia, except the
portion of the country north of the Veterinary Cordon Fence (VCF), to
the list of regions that are considered free of foot-and-mouth disease
(FMD), and to add the entire country to the list of regions that are
considered free of rinderpest. We are taking this action because we
have determined that the region in Namibia south of the VCF is now free
of FMD and the entire country is free of rinderpest. We are also adding
Namibia, except the region north of the VCF, to the list of FMD- and
rinderpest-free regions that are subject to certain import restrictions
on meat and other animal products because of their proximity to or
trading relationships with rinderpest- or FMD-affected regions. This
action relieves certain
[[Page 62199]]
restrictions due to FMD and rinderpest on the importation into the
United States of certain live animals and animal products from all
regions of Namibia except the region north of the VCF. However, because
we consider Namibia to be affected with African swine fever, classical
swine fever, and swine vesicular disease, the importation of live swine
and pork and pork products will continue to be restricted. In addition,
because we consider Namibia to be affected with other animal diseases
that are exotic to the United States, the importation of live ruminants
and germplasm will also continue to be restricted. These actions will
update the disease status of Namibia with regard to FMD and rinderpest
while continuing to protect the United States from an introduction of
those diseases by providing additional requirements for any meat and
meat products imported into the United States from Namibia.
DATES: Effective Date: November 24, 2006.
FOR FURTHER INFORMATION CONTACT: Mr. Javier Vargas, Animal Scientist,
Regionalization Evaluation Services Staff, National Center for Import
and Export, VS, APHIS, 4700 River Road, Unit 38, Riverdale, MD 20737-
1231; (301) 734-0756.
SUPPLEMENTARY INFORMATION:
Background
The regulations in 9 CFR part 94 (referred to below as the
regulations) govern the importation of certain animals and animal
products into the United States in order to prevent the introduction of
various diseases, including rinderpest, foot-and-mouth disease (FMD),
African swine fever, classical swine fever, and swine vesicular
disease. These are dangerous and destructive communicable diseases of
ruminants and swine. Section 94.1 of the regulations lists regions of
the world that are declared free of rinderpest or free of both
rinderpest and FMD. Rinderpest or FMD exists in all other parts of the
world not listed. Section 94.11 of the regulations lists regions of the
world that have been determined to be free of rinderpest and FMD, but
that are subject to certain restrictions because of their proximity to
or trading relationships with rinderpest- or FMD-affected regions.
On June 15, 2006, we published in the Federal Register (71 FR
34537-34549, Docket No. APHIS-2006-0037) a proposal \1\ to amend the
regulations by recognizing the entire country of Namibia as rinderpest-
free and all of Namibia except the region north of the Veterinary
Cordon Fence (VCF) as free of FMD. We also proposed to add Namibia,
except the region north of the VCF, to the list of FMD- and rinderpest-
free regions that are subject to certain import restrictions on meat
and other animal products because of their proximity to or trading
relationships with rinderpest- or FMD-affected regions. In our
proposal, we noted that, because we consider Namibia to be affected
with African swine fever, classical swine fever, and swine vesicular
disease, the importation of live swine and pork and pork products would
continue to be restricted. In addition, because we consider Namibia to
be affected with other animal diseases that are exotic to the United
States, the importation of live ruminants and germplasm would also
continue to be restricted.
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\1\ To view the proposed rule, go to https://www.regulations.gov,
click on the ``Advanced Search'' tab, and select ``Docket Search.''
In the Docket ID field, enter APHIS-2006-0037, then click
``Submit.'' Clicking on the Docket ID link in the search results
page will produce a list of all documents in the docket.
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We solicited comments concerning our proposal for 60 days ending
August 14, 2006. We did not receive any comments. Therefore, for the
reasons given in the proposed rule, we are adopting the proposed rule
as a final rule, without change.
Executive Order 12866 and Regulatory Flexibility Act
This rule has been reviewed under Executive Order 12866. For this
action, the Office of Management and Budget has waived its review under
Executive Order 12866.
We are amending the regulations in Sec. 94.1 to list Namibia as a
region free of rinderpest and the region of Namibia south of the VCF as
a region free of FMD. However, since Namibia borders on and trades with
regions that the United States does not recognize as free of FMD and
because its importation standards are less stringent than those of the
United States, we are also listing the region of Namibia south of the
VCF in Sec. 94.11 as a region subject to the additional certification
requirements of that section.
It should be noted that Namibia is not currently eligible to export
ruminant meat products to the United States under the regulations of
the United States Department of Agriculture's Food Safety Inspection
Service (FSIS); there would, therefore, be no economic effects on U.S.
entities until establishments in Namibia were approved to export
ruminant meat and other products to the United States. The following
analysis examines the potential economic impacts of the changes in the
regulations that could occur if establishments in Namibia were approved
to export under the FSIS regulations.
Namibia produces and internationally trades in beef, sheep, goat,
and game meat. Namibia produced 134 million pounds of beef in 2004 and
exported an average of 59.2 million pounds of beef and veal per year
between 1994 and 2003. The country has established trading
relationships with the Republic of South Africa and several western
European countries. Namibia also produced 29.6 million pounds of
mutton, lamb, and goat meat in 2003 and exported an average of 5.73
million pounds per year between 1994 and 2003, with most exports going
to the Republic of South Africa. Namibia produced 8.8 million pounds of
game meat in 2003.
Namibia's agricultural trade with the United States is small. In
2003, Namibia exported agricultural products worth a total $199,000, of
which $21,000 was for hides and skins, and imported $5.443 million
worth of agricultural products, of which $40,000 was for beef and veal.
(Sources: FAO, FAOSTAT, 2004; UN/FAO, FAOSTAT Data, 2004; Hilda
Hampweya, April 2005, personal communication, Namibia Division of Trade
and Statistics.)
Possible economic effects of imports from Namibia would differ for
beef and for sheep and goat meat imports. For beef imports,
approximately 22 million pounds of beef could be imported annually from
Namibia as a result of this rule (again, assuming FSIS approval) based
on data collected from the Central Bureau of Statistics-Trade
Statistics Division of Namibia. Based on 10-year average U.S. domestic
supply, an import of about 22 million pounds of beef would result in a
price decrease of less than $0.002 per pound at the wholesale level. If
50 percent of Namibia's 10-year average beef exports (29.6 million
pounds) were diverted to the U.S. market, the result would be a price
decline of only $0.0024 per pound (table 1).
As for sheep and goats, the estimated potential exports to the
United States of these meats are about 15.43 million pounds per year
according to data collected from the Central Bureau of Statistics-Trade
Statistics Division of Namibia. If this supply were realized, U.S.
sheep and goat meat prices could decline and sheep producers could be
negatively affected, as the above figure represents about 4.35 percent
of U.S. domestic supply. This could result in a
[[Page 62200]]
price decline of $0.07 per pound (table 1). However, it is questionable
whether Namibia would have the capacity to export this amount and
maintain its trade with its established South African and European
markets. Although several markets in the European Union are accessible
to Namibia, the Republic of South Africa continues to be its major
trading partner. Namibia exported 15.66 million pounds of sheep and
goat meat to all countries in 2003, so to meet this goal of 15.43
million pounds exported to the United States, nearly all of the current
exports would have to be diverted. Between 1994 and 2003, Namibian
exports of sheep and goats have fluctuated, with a negative export
growth rate in every year except for four: 1995, 1998, 1999, and 2001.
The impact is not as large when based on the 10-year average quantity
exported of 5.73 million pounds. Assuming this level of export to the
United States, the estimated decline in price is between $0.02 and
$0.03 per pound.
Table 1.--The Impact of the Importation of Beef, Sheep, and Goat Meat From Namibia to the United States
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Beef Sheep and goat meat
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Domestic Domestic
Percentage diverted to U.S. market \1\ Decline in producer Decline in producer
Million Change in price loss Million Change in price loss
pounds price (%) (cents/ (millions pounds price (%) (cents/ (millions
pound) of $) pound) of $)
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10...................................................... 5.92 -0.0291 -0.0483 -11.902 0.573 -0.231 -0.261 -0.435
20...................................................... 11.84 -0.0582 -0.0966 -23.795 1.146 -0.461 -0.521 -0.871
40...................................................... 23.68 -0.1164 -0.1932 -47.586 2.293 -0.922 -1.042 -1.742
50...................................................... 29.6 -0.1454 -0.2414 -59.479 2.865 -1.153 -1.303 -2.177
Designated.............................................. \2\ 22.05 -0.1083 -0.1799 -44.309 \2\ 15.43 -6.209 -7.016 -11.725
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\1\ The percentages are based on the 10-year average exports: 59.2 million pounds for beef and 5.73 million pounds for sheep and goat meat.
\2\ Denotes the estimated amount indicated by Namibian agricultural specialists and the industry as being available for export to the United States.
The impacts depicted in table 1 are further considered in terms of
effects for large and small entities in table 2 (beef producers) and
table 3 (sheep and goat producers). In each case, impacts at various
import levels are apportioned between large and small establishments by
inventory share, according to the 2002 Census of Agriculture. Average
effects per establishment are calculated based on numbers of large and
small establishments with reported sales (2002 Census of Agriculture).
As shown in table 2, if Namibia were to divert to the United States
22.05 million pounds of beef exports per year, as projected by that
country's agricultural specialists, the average annual decline in
revenue for U.S. small entities would be about $28. Similarly, if 15.43
million pounds of sheep and goat meat exports per year were diverted to
the United States, as projected by Namibia, the average annual decline
in revenue for U.S. small entities would be about $108.
Table 2.--Potential Effects for Large and Small Beef Cattle Producers
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Large \2\ Small \2\
U.S. producer -------------------------------------------------------------------------
Percentage diverted to the U.S. market \1\ revenue loss Average Average
(millions of $) Revenue loss revenue loss Revenue loss revenue loss
(millions of $) ($) (millions of $) ($)
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10........................................................ -11.902 -5.571 -860 -6.331 -8
20........................................................ -23.795 -11.138 -1,719 -12.657 -15
40........................................................ -47.586 -22.275 -3,437 -25.311 -30
50........................................................ -59.479 -27.642 -4,265 -31.637 -38
Designated................................................ -44.309 -20.741 -3,200 -23.568 -28
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\1\ The percentages are based on the 10-year average exports: 59.2 million pounds for beef and 5.73 million pounds for sheep and goat meat.
\2\ Revenue losses to large and small establishments are distributed according to inventory share (46.81 percent for large and 53.19 percent for small
establishments). Averaged revenue losses are calculated by dividing by the number of establishments (845,490 and 6,481 for small and large
establishments, respectively).
Table 3.--Potential Effects for Large and Small Sheep and Goat Producers
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Large \2\ Small \2\
U.S. producer -------------------------------------------------------------------------
Percentage diverted to the U.S. market \1\ revenue loss Average Average
(millions of $) Revenue loss revenue loss Revenue loss revenue loss
(millions of $) ($) (millions of $) ($)
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10........................................................ -0.435 -0.114 -765 -0.321 -4
20........................................................ -0.871 -0.229 -1,537 -0.642 -8
40........................................................ -1.742 -0.458 -3,074 -1.284 -16
50........................................................ -2.177 -0.573 -3,846 -1.604 -20
Designated................................................ -11.725 -3.084 -20,698 -8.641 -108
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\1\ The percentages are based on the 10-year average exports: 59.2 million pounds for beef and 5.73 million pounds for sheep and goat meat.
\2\ Revenue losses to large and small establishments are distributed according to inventory share (26.3 percent for large and 73.7 percent for small
establishments). Average revenue losses are calculated by dividing by the number of establishments (80,443 and 149 for small and large establishments,
respectively).
[[Page 62201]]
According to the size standards established by the Small Business
Administration (SBA) for livestock and animal specialties, producers of
cattle and calves (North American Industry Classification System
[NAICS] code 112111), game animals (NAICS 112990), sheep (NAICS
112410), and goats (NAICS 112420) with not more than $750,000 annual
sales qualify as small entities. Based on data from the 2002 Census of
Agriculture, 851,971 operations in the U.S. raised and sold 73 million
cattle and calves in 2002. Small operations (over 99 percent of the
farms) had an average of 68 cattle and an average income of $24,067,
well below the SBA criterion of $750,000 in annual sales for businesses
primarily engaged in cattle farming. Large operations had an annual
income of $3,821,440. Similarly, over 99 percent of sheep and goat
producers (80,443) are small. Small sheep and lamb producers had an
average income of $7,520, while large ones had an average income of
$1.042 million.
Meat processing entities (NAICS 311612), and meat and meat product
merchant wholesalers (NAICS 424470) may be affected by this rule
(Source: U.S. Census Bureau, 2002 Economic Census, Wholesale Trade-
Subject Series, August 2006). Under SBA standards, meat processing
establishments with no more than 500 employees and meat and meat
product wholesalers with no more than 100 employees are considered
small. In 2002, there were 1,335 companies in the United States that
processed and sold meat. More than 97 percent of these establishments
are considered to be small entities and had average sales of $15.4
million, while large meat processors had average sales of $188 million.
In 2002, there were 2,535 meat and meat product wholesalers in the
United States. (Source: SBA and 2002 Economic Census.) Of these
establishments, 2,456 (97 percent) employed not more than 100 employees
and are, thus, considered small by SBA standards. Small wholesalers had
average sales of $9.3 million, while large entities had average sales
of $131 million.\2\
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\2\ U.S. Census Bureau, 2002 Economic Census: Manufacturing-
Industries Series, Wholesale Trade-Subject Series and Transportation
and Warehousing-Subject Series, Issued December 2005.
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The only alternative to the rule would involve not changing the
current regulations regarding the importation of beef, sheep, and goat
meat and game meat from Namibia. This alternative would not be
appropriate in light of the findings of our risk analysis and our
conclusion that the Namibian government has the laws, policies, and
infrastructure to detect, respond to, and eliminate any reoccurrence of
FMD. The rule provides the safeguarding measures appropriate to the
animal disease risk associated with importation of this type of animal
product. The rule also enhances a positive trade environment between
Namibia and the United States. We note again that Namibia is not
currently eligible to export ruminant meat products to the United
States under the FSIS regulations cited earlier in this document; there
would, therefore, be no economic effects on U.S. entities until
establishments in Namibia were approved to export ruminant meat and
other products to the United States.
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 12372
This program/activity is listed in the Catalog of Federal Domestic
Assistance under No. 10.025 and is subject to Executive Order 12372,
which requires intergovernmental consultation with State and local
officials. (See 7 CFR part 3015, subpart V.)
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 in conflict 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 final 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 in 9 CFR Part 94
Animal diseases, Imports, Livestock, Meat and meat products, Milk,
Poultry and poultry products, Reporting and recordkeeping requirements.
0
Accordingly, we are amending 9 CFR part 94 as follows:
PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL
PLAGUE), EXOTIC NEWCASTLE DISEASE, AFRICAN SWINE FEVER, CLASSICAL
SWINE FEVER, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND
RESTRICTED IMPORTATIONS
0
1. The authority citation for part 94 continues to read as follows:
Authority: 7 U.S.C. 450, 7701-7772, 7781-7786, and 8301-8317; 21
U.S.C. 136 and 136a; 31 U.S.C. 9701; 7 CFR 2.22, 2.80, and 371.4.
Sec. 94.1 [Amended]
0
2. Section 94.1 is amended as follows:
0
a. In paragraph (a)(2), by adding the words ``Namibia (excluding the
region north of the Veterinary Cordon Fence),'' after the word
``Mexico,''.
0
b. In paragraph (a)(3), by removing the words ``The Republic'' and
adding the words ``Namibia and the Republic'' in their place.
Sec. 94.11 [Amended]
0
3. In Sec. 94.11, paragraph (a) is amended by adding the words
``Namibia (excluding the region north of the Veterinary Cordon
Fence),'' before the words ``The Netherlands''.
Done in Washington, DC, this 18th day of October 2006.
Kevin Shea,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. E6-17776 Filed 10-23-06; 8:45 am]
BILLING CODE 3410-34-P
