Multi-Year Revision of Fees for the Fresh Fruit and Vegetable Terminal Market Inspection Services, 41885-41888 [E7-14826]
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41885
Rules and Regulations
Federal Register
Vol. 72, No. 147
Wednesday, August 1, 2007
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 51
[Docket #AMS–FV–07–0099; FV–06–308]
RIN 0581–AC63
Multi-Year Revision of Fees for the
Fresh Fruit and Vegetable Terminal
Market Inspection Services
AGENCY:
Agricultural Marketing Service,
USDA.
ACTION:
Final rule.
SUMMARY: This rule would revise the
regulations governing the inspection
and certification for fresh fruits,
vegetables and other products by
increasing certain fees charged for the
inspection of these products at
destination markets for the next two
fiscal years (FY–2007 and FY–2008) by
approximately 15 percent each fiscal
year. This rule would increase fees 30
days after publication in FY–2007 and
again in March 2008. These revisions
are necessary in order to recover, as
nearly as practicable, the costs of
performing inspection services at
destination markets under the
Agricultural Marketing Act of 1946
(AMA of 1946). The fees charged to
persons required to have inspection on
imported commodities in accordance
with the Agricultural Marketing
Agreement Act of 1937 and for imported
peanuts under section 1308 of the Farm
Security and Rural Investigation Act of
2002.
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DATES:
Effective Date: August 31, 2007.
Rita
Bibbs-Booth, USDA, 1400 Independence
Ave., SW, Room 0640–S, Washington,
DC 20250–0295, or call (202) 720–0391.
FOR FURTHER CONTACT INFORMATION:
SUPPLEMENTARY INFORMATION:
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15:44 Jul 31, 2007
Jkt 211001
Executive Order 12866 and Regulatory
Flexibility Act
This rule has been determined to be
‘‘non-significant’’ for the purposes of
Executive Order 12866 and therefore
has not been reviewed by the Office of
Management and Budget.
Also, pursuant to the requirement set
forth in the Regulatory Flexibility Act
(RFA), AMS has considered the
economic impact of this action on small
entities. Accordingly, AMS proposes
this initial regulatory flexibility
analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
The action described herein is being
taken for several reasons, including that
additional user fee revenues are needed
to cover the costs for: (1) Providing
current program operations and
services; (2) improving the timeliness in
which inspection services are provided;
and (3) improving the work
environment.
AMS regularly reviews its user-fee
financed programs to determine if the
fees are adequate. The Fresh Products
Branch (FPB) has and will continue to
seek out cost saving opportunities and
implement appropriate changes to
reduce its costs. Such actions can
provide alternatives to fee increases.
FPB has reduced costs by approximately
$2 million. However, even with these
efforts, FPB’s existing fee schedule will
not generate sufficient revenue to cover
program costs while maintaining the
Agency mandated reserve balance.
Revenue projections for FPB’s
destination market inspection work
during FY–2006 are $15.3 million with
costs projected at $20.4 million and an
end-of-year reserve balance of
approximately $12.7 million. However,
this reserve balance is due in part, to
appropriated funding received in
October 2001, for infrastructure,
workplace, and technological
improvements. FPB’s costs of operating
the destination market program are
expected to increase to approximately
$21.6 million during FY–2007 and $22.5
million during FY–2008. Revenues are
projected to be $15.3 million for end of
the fiscal year. The reserve balance for
FY–2007 and FY–2008, will fall below
the Agency’s mandated four-month
reserve level. The reserve balance is
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projected to be approximately $6.5
million for FY–2007 (3.6 months) and
approximately negative $600,000 for
FY–2008 (¥0.3 months).
This fee increase should result in an
estimated average of $2.4 million in
additional revenues per year (effective
in FY–2007, if the fees were
implemented by October 1, 2006).
However, fees would not be increased
until later in FY–2007. Further, as a
result, the next fee increase is delayed
until March 2008 instead of the start of
FY–2008. These increases will not cover
all of FPB’s costs. FPB will need to
continue to increase fees in order to
cover the program’s operating cost and
maintain the required reserve balance.
FPB believes that increasing fees
incrementally is appropriate at this
time. Additional fee increases beyond
FY–2008 will be needed to sustain the
program in the future. However, we will
continue to reduce costs, wherever
possible.
Employee salaries and benefits are
major program costs that account for
approximately 80 percent of FPB’s total
operating budget. A general and locality
salary increase for Federal employees,
ranging from 2.87 to 5.62 percent
depending on locality, effective January
2006, has significantly increased
program costs and will continue to
increase costs at a similar rate in future
years. This salary adjustment will
increase FPB’s costs by over $700,000
per year. Increases in health and life
insurance premiums, along with
workers compensation will also increase
program costs. In addition, inflation also
impacts FPB’s non-salary costs. These
factors have increased FPB’s costs of
operating this program by over $600,000
per year.
Additional funds are necessary in
order for FPB to continue to cover the
costs associated with additional staff
and to maintain office space and
equipment. Additional revenues are also
necessary to improve the work
environment by providing training and
purchasing needed equipment. In
addition, FPB began in 2001, developing
(with appropriated funds) the Fresh
Electronic Inspection Reporting/
Resource System (FEIRS) to replace its
manual paper and pen inspection
reporting process. FEIRS was
implemented in 2004. This system has
been put in place to enhance and
streamline FPB’s fruit and vegetable
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Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Rules and Regulations
sroberts on PROD1PC70 with RULES
inspection process, however additional
revenue is required to maintain FEIRS.
FPB has also begun to cover the costs
associated with the Training and
Development Center (TDC) in
Fredericksburg, VA. A portion of the
appropriated funds received in October
2001, were for infrastructure
improvements including the
development and maintenance of the
inspector TDC. With appropriated
funding now depleted, FPB is now
obligated to support the TDC under
revenues from the terminal market user
fee inspection program.
This rule should increase user fee
revenue generated under the destination
market program by approximately 15
percent each fiscal year. This action is
authorized under the Agricultural
Marketing Act of 1946 (AMA of 1946)
(See 7 U.S.C. 1622(h)), which provides
that the Secretary of Agriculture may
assess and collect ‘‘such fees as will be
reasonable and as nearly as may be to
cover the costs of services rendered
* * *’’ There are more than 2,000 users
of FPB’s destination market grading
services (including applicants who must
meet import requirements 1—
inspections which amount to under 2.5
percent of all lot inspections
performed). A small portion of these
users are small entities under the
criteria established by the Small
Business Administration (13 CFR
121.201). There would be no additional
reporting, recordkeeping, or other
compliance requirements imposed upon
small entities as a result of this rule. In
compliance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection
and recordkeeping requirements in Part
51 have been approved previously by
OMB and assigned OMB No. 0581–
0125. FPB has not identified any other
Federal rules which may duplicate,
1 Section 8e of the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601–
674), requires that whenever the Secretary of
Agriculture issues grade, size, quality or maturity
regulations under domestic marketing orders for
certain commodities, the same or comparable
regulations on imports of those commodities must
be issued. Import regulations apply during those
periods when domestic marketing order regulations
are in effect. Section 1308 of the Farm Security and
Rural Investment Act of 2002 (Pub. L. 107–171), 7
U.S.C. 7958, required USDA among other things to
develop new peanut quality and handling standards
for imported peanuts marketing in the United
States.
Currently, there are 14 commodities subject to 8e
import regulations: Avocados, dates (other than
dates for processing), filberts, grapefruit, kiwifruit,
olives (other than Spanish-style green olives),
onions, oranges, potatoes, prunes, raisins, table
grapes, tomatoes and walnuts. A current listing of
the regulated commodities can be found under 7
CFR Parts 944, 980, 996 and 999.
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15:44 Jul 31, 2007
Jkt 211001
overlap or conflict with this proposed
rule.
The destination market grading
services are voluntary (except when
required for imported commodities) and
the fees charged to users of these
services vary with usage. The impact on
all businesses, including small entities,
is very similar. However, except for
those persons who are required to
obtain inspections, most of these
businesses are typically under no
obligation to use these inspection
services, and, therefore, any decision on
their part to discontinue the use of the
services should not prevent them from
marketing their products. Further, even
though fees will be raised, the increase
is not excessive and should not
significantly affect these entities.
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This action 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
this rule. There are no administrative
procedures which must be exhausted
prior to any judicial challenge to the
provisions of this rule.
Action
The AMA of 1946 authorizes official
inspection, grading, and certification, on
a user-fee basis, of fresh fruits,
vegetables and other products such as
raw nuts, Christmas trees and flowers.
The AMA of 1946 provides that
reasonable fees be collected from the
users of the services to cover, as nearly
as practicable, the cost of the services
rendered. This rule would amend the
schedule for fees and charges for
inspection services rendered to the fresh
fruit and vegetable industry to reflect
the costs necessary to operate the
program.
AMS regularly reviews its user-fee
financed programs to determine if the
fees are adequate. The Fresh Products
Branch (FPB) has and will continue to
seek out cost saving opportunities and
implement appropriate changes to
reduce its costs. Such actions can
provide alternatives to fee increases.
FPB has reduced costs by approximately
$2 million. However, even with these
efforts, FPB’s existing fee schedule will
not generate sufficient revenue to cover
program costs while maintaining the
Agency mandated reserve balance.
Revenue projections for FPB’s
destination market inspection work
during FY–2006 are $15.3 million with
costs projected at $20.4 million and an
end-of-year reserve balance of
PO 00000
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Fmt 4700
Sfmt 4700
approximately $12.7 million. However,
this reserve balance is due in part, to
appropriated funding received in
October 2001, for infrastructure,
workplace, and technological
improvements. FPB’s costs of operating
the destination market program are
expected to increase to approximately
$21.6 million during FY–2007 and $22.5
million during FY–2008. Revenues are
projected to be $15.3 million for end of
the fiscal year. The reserve balance for
FY–2007 and FY–2008, will fall below
the Agency’s mandated four-month
reserve level. The reserve balance is
projected to be approximately $6.5
million for FY–2007 (3.6 months) and a
negative $584,000 for FY–2008 (¥0.3
months).
Employee salaries and benefits are
major program costs that account for
approximately 80 percent of FPB’s total
operating budget. A general and locality
salary increase for Federal employees,
ranging from 2.87 to 5.62 percent
depending on locality, effective January
2006, has significantly increased
program costs, and will continue to
increase costs at a similar rate in future
years. This salary adjustment will
increase FPB’s costs by over $700,000
per year. Increases in health and life
insurance premiums, along with
workers compensation will also increase
program costs. In addition, inflation also
impacts FPB’s non-costs. These factors
have increased FPB’s costs of operating
this program by over $600,000 per year.
Additional revenues are necessary in
order for FPB to continue to cover the
costs associated with additional staff
and to maintain office space and
equipment. Additional revenues are also
necessary to continue to improve the
work environment by providing training
and purchasing needed equipment. In
addition, FPB began in 2001, developing
(with appropriated funds) an automated
system known as FEIRS, to replace its
manual paper and pen inspection
reporting process. Approximately
$10,000 in additional revenue per
month will be needed to maintain the
system. This system has been put in
place to enhance FPB’s fruit and
vegetable inspection processes. FPB has
also begun to cover the costs associated
with the TDC in Fredericksburg, VA. A
portion of the appropriated funds
received in October 2001, were for
infrastructure improvements including
the development and maintenance of
the inspector TDC. With appropriated
funding now depleted, FPB is now
obligated to support the TDC under
revenues from the terminal market user
fee inspection program.
Based on the aforementioned analysis
of this program’s increasing costs, AMS
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Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Rules and Regulations
will increase the fees for destination
market inspection services. The
following table compares current fees
and charges with the proposed fees and
charges for fresh fruit and vegetable
inspection as found in 7 CFR 51.38.
Unless otherwise provided for by
regulation or written agreement between
Service
1In
2007
2008
$114.00
95.00
52.00
$131.00
109.00
60.00
$151.00
125.00
69.00
95.00
87.00
52.00
109.00
100.00
60.00
125.00
115.00
69.00
52.00
52.00
60.00
60.00
69.00
69.00
12.9
13.3
13.8
14.4
15.1
114.00
52.00
131.00
60.00
15.9
151.00
69.00
56.00
64.00
74.00
29.00
29.00
33.00
66.00
38.00
74.00
56.00
1.00
64.00
1.15
74.00
1.32
cents.
A notice of proposed rulemaking was
published in the Federal Register on
December 1, 2006, (71 FR 69497). FPB
received one comment after the
comment period closed.
As previously stated, because the FY–
2007 fee increase in effect in the latter
part of the fiscal year, AMS is changing
the effective date of the FY–2008 fee
increase to March 1, 2008, to provide a
sufficient amount of time between the
two fee increases. Finally, the regulatory
text in the proposed section 51.38(e) is
corrected to reflect separate fees for
overtime and holiday note that appeared
in the supplementary information
section of the proposed rule.
List of Subjects in 7 CFR Part 51
Agricultural commodities, Food
grades and standards, Fruits, Nuts,
Reporting and recordkeeping
requirements, Trees, Vegetables.
I For reasons set forth in the preamble,
7 CFR Part 51 is amended as follows:
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the applicant and the Administrator, the
changes in the schedule of fees as found
in § 51.38 are:
Current
Quality and condition inspections of products each in quantities of 51 or more packages
and unloaded from the same land or air conveyance:
• Over a half carlot equivalent of each product ............................................................
• Half carlot equivalent or less of each product ............................................................
• For each additional lot of the same product ...............................................................
Condition only inspections of products each in quantities of 51 or more packages and unloaded from the same land or air conveyance:
• Over a half carlot equivalent of each product ............................................................
• Half carlot equivalent or less of each product ............................................................
• For each additional lot of the same product ...............................................................
Quality and condition and condition only inspections of products each in quantities of 50
or less packages unloaded from the same land or air conveyance:
• For each product .........................................................................................................
• For each additional lot of any of the same product ...................................................
Lots in excess of carlot equivalents will be charged proportionally by the quarter carlot..
Dock side inspections of an individual product unloaded directly from the same ship:.
• For each package weighing less than 30 pounds ......................................................
• For each package weighing 30 or more pounds ........................................................
• Minimum charge per individual product ......................................................................
• Minimum charge for each additional lot of the same product ....................................
Hourly rate for inspections performed for other purposes during the grader’s regularly
scheduled work week:
• Hourly rate for non-carlot equivalent inspections such as count, size, temperature,
container, etc. or work associated with inspections such as digital image services
will be charged at a rate that reflects the cost of providing the service ....................
Overtime rate (per hour additional) for all inspections performed outside the grader’s regularly scheduled work week ...............................................................................................
Holiday pay ............................................................................................................................
Hourly rate for inspections performed under 40 hour contracts during the grader’s regularly scheduled work week .................................................................................................
Rate for billable mileage ........................................................................................................
41887
PART 51—[AMENDED]
1. The authority citation for 7 CFR
Part 51 continues to read as follows:
I
Authority: 7 U.S.C. 1621–1627.
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Jkt 211001
2. Section 51.38 is revised to read as
follows:
I
§ 51.38
Basis for fees and rates.
(a) When performing inspections of
product unloaded directly from land or
air transportation, the charges shall be
determined on the following basis:
(1) Quality and condition inspections
of products in quantities of 51 or more
packages and unloaded from the same
air or land conveyance:
(i) $131 ($151, on or after March 1,
2008) for over a half carlot equivalent of
an individual product;
(ii) $109 ($125, on or after March 1,
2008) for a half carlot equivalent or less
of an individual product;
(iii) $60 ($69, on or after March 1,
2008) for each additional lot of the same
product.
(2) Condition only inspection of
products each in quantities of 51 or
more packages and unloaded from the
same land or air conveyance:
(i) $109 ($125, on or after March 1,
2008) for over a half carlot equivalent of
an individual product;
(ii) $100 ($115, on or after March 1,
2008) for a half carlot equivalent or less
of an individual product;
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Fmt 4700
Sfmt 4700
(iii) $60 ($69, on or after March 1,
2008) for each additional lot of the same
product.
(3) For quality and condition
inspection and condition only
inspection of products in quantities of
50 or less packages unloaded from the
same conveyance:
(i) $60 ($69, on or after March 1, 2008)
for each individual product:
(ii) $60 ($69, on or after March 1,
2008) for each additional lot of any of
the same product. Lots in excess of
carlot equivalents will be charged
proportionally by the quarter carlot.
(b) When performing inspections of
palletized products unloaded directly
from sea transportation or when
palletized product is first offered for
inspection before being transported
from the dock-side facility, charges shall
be determined on the following basis:
(1) Dock side inspections of an
individual product unloaded directly
from the same ship:
(i) 3.3 (3.8, on or after March 1, 2008)
cents per package weighing less than 30
pounds;
(ii) 5.1 (5.9, on or after March 1, 2008)
cents per package weighing 30 or more
pounds;
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Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Rules and Regulations
(iii) Minimum charge of $131 ($151,
on or after March 1, 2008) per
individual product;
(iv) Minimum charge of $60 ($69, on
or after March l, 2008) for each
additional lot of the same product.
(2) [RESERVED]
(c) When performing inspections of
products from sea containers unloaded
directly from sea transportation or when
palletized products unloaded directly
from sea transportation are not offered
for inspection at dock-side, the carlot
fees in ‘‘a’’ of this section shall apply.
(d) When performing inspections for
Government agencies, or for purposes
other than those prescribed in
paragraphs (a) through (c) of this
section, including weight-only and
freezing-only inspections, fees for
inspections shall be based on the time
consumed by the grader in connection
with such inspections, computed at a
rate of $64 ($74, on or after March 1,
2008) per hour;
Provided, that:
(1) Charges for time shall be rounded
to the nearest half hour;
(2) The minimum fee shall be two
hours for weight-only inspections, and
one-half hour for other inspections;
(3) When weight certification is
provided in addition to quality and/or
condition inspection, a one hour charge
shall be added to the carlot fee;
(4) When inspections are performed to
certify product compliance for Defense
Personnel Support Centers, the daily or
weekly charge shall be determined by
multiplying the total hours consumed to
conduct inspections by the hourly rate.
The daily or weekly charge shall be
prorated among applicants by
multiplying the daily or weekly charge
by the percentage of product passed
and/or failed for each applicant during
that day or week. Waiting time and
overtime charges shall be charged
directly to the applicant responsible for
their incurrence.
(e) When performing inspections at
the request of the applicant during
periods which are outside the grader’s
regularly scheduled work week, a
charge for overtime or holiday work
shall be made at the rate of $33 for
overtime and $66 for holiday work ($38
for overtime and $74 for holiday work,
on or after March 1, 2008) per hour or
portion thereof in addition to the carlot
equivalent fee, package charge, or
hourly charge specified in this subpart.
Overtime or holiday charges for time
shall be rounded to the nearest half
hour.
(f) When an inspection is delayed
because product is not available or
readily accessible, a charge for waiting
time shall be made at the prevailing
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15:44 Jul 31, 2007
Jkt 211001
hourly rate in addition to the carlot
equivalent fee, package charge, or
hourly charge specified in this subpart.
Waiting time shall be rounded to the
nearest half hour.
Dated: July 26, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E7–14826 Filed 7–31–07; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF HOMELAND
SECURITY
U.S. Citizenship and Immigration
Services
8 CFR Part 103
[CIS No. 2415–07; Docket No. USCIS–2007–
0039]
RIN 1615–AB60
Temporary Adjustment of the
Immigration and Naturalization Benefit
Application and Petition Fee Schedule
for Certain Adjustment of Status and
Related Applications
U.S. Citizenship and
Immigration Services, DHS.
ACTION: Final rule.
AGENCY:
This rule temporarily amends
the applicable fees for employmentbased Forms I–485, ‘‘Application to
Register Permanent Residence or Adjust
Status,’’ and applications for derivative
benefits associated with such Forms I–
485 filed pursuant to the Department of
State’s July Visa Bulletin No. 107, dated
June 12, 2007. The fees for all other
petitions and applications administered
by U.S. Citizenship and Immigration
Services will continue in force as
effective on July 30, 2007.
DATES: Effective Date: This rule is
effective July 30, 2007, at 12:02 a.m.
EST.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Efren Hernandez III, Business and Trade
Services, Service Center Operations
(Business and Trade Services), U.S.
Citizenship and Immigration Services,
Department of Homeland Security, 111
Massachusetts Avenue, Suite 3000,
Washington, DC 20001, telephone (202)
272–8400.
SUPPLEMENTARY INFORMATION:
I. Background
1. USCIS Fee Schedule
On May 30, 2007, USCIS published
the final rule, effective July 30, 2007,
‘‘Adjustment of the Immigration and
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Frm 00004
Fmt 4700
Sfmt 4700
Naturalization Benefit Application and
Petition Fee Schedule,’’ amending 8
CFR part 103 to prescribe new fees to
fund the cost of processing applications
and petitions for immigration and
naturalization benefits and services, and
USCIS’ associated operating costs
pursuant to section 286(m) of the
Immigration and Nationality Act (INA),
8 U.S.C. 1356(m). 72 FR 29851. That
rule provides that applications that are
submitted to USCIS with the incorrect
fee will be rejected. For the reasons
described below, USCIS, through this
rule, is amending the fees again on a
temporary basis for certain applications.
This rule will become effective
immediately after the final fee rule
published on May 30, 2007, and makes
only temporary modifications to that
rule to respond to the events described
below. The rule provides limited relief
for specific applicants from the final fee
rule published on May 30, 2007. The
effect of this rule is limited to those
applications filed before August 18,
2007. For applications filed on or after
August 18, 2007, the fees set forth in the
final rule published on May 30, 2007,
will be required. USCIS will remove this
regulation by another rule to be
published in Federal Register on or
about August 17, 2007, to be effective
August 18, 2007.
2. Visa Availability—Summary
The INA establishes formulas and
numerical limits for regulating persons
immigrating to the United States for
permanent residence, to include
defining the employment-based
immigrant visa classifications. INA sec.
201 et seq., 8 U.S.C. 1151 et seq. The
INA provides an annual world-wide
numerical limit on the number of aliens
who may immigrate to the United
States, as well as an annual per-country
numerical limit on the number of aliens
who may emigrate from a particular
country. INA sections 201(d) and
202(a)(2), 8 U.S.C. 1151(d) and
1152(a)(2). In addition, the INA
allocates the total number of world-wide
visas among five employment-based
categories or preferences. INA sec.
203(b), 8 U.S.C. 1153(b). Taken together,
the total number of visas, the country
from which an alien emigrates, and the
allocation of visas among the preference
categories, determines whether a
particular alien may immigrate to the
United States at a certain date.
The Department of State (DOS)
determines the availability of immigrant
visa numbers. See INA sections 203(e)
and (g), 8 U.S.C. 1153(e) and (g). DOS
also controls individual allocation of
employment-based immigrant visas. 22
CFR 42.32. DOS publishes a ‘‘Visa
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]]>Agencies
[Federal Register Volume 72, Number 147 (Wednesday, August 1, 2007)]
[Rules and Regulations]
[Pages 41885-41888]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14826]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 /
Rules and Regulations
[[Page 41885]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 51
[Docket AMS-FV-07-0099; FV-06-308]
RIN 0581-AC63
Multi-Year Revision of Fees for the Fresh Fruit and Vegetable
Terminal Market Inspection Services
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule would revise the regulations governing the
inspection and certification for fresh fruits, vegetables and other
products by increasing certain fees charged for the inspection of these
products at destination markets for the next two fiscal years (FY-2007
and FY-2008) by approximately 15 percent each fiscal year. This rule
would increase fees 30 days after publication in FY-2007 and again in
March 2008. These revisions are necessary in order to recover, as
nearly as practicable, the costs of performing inspection services at
destination markets under the Agricultural Marketing Act of 1946 (AMA
of 1946). The fees charged to persons required to have inspection on
imported commodities in accordance with the Agricultural Marketing
Agreement Act of 1937 and for imported peanuts under section 1308 of
the Farm Security and Rural Investigation Act of 2002.
DATES: Effective Date: August 31, 2007.
FOR FURTHER CONTACT INFORMATION: Rita Bibbs-Booth, USDA, 1400
Independence Ave., SW, Room 0640-S, Washington, DC 20250-0295, or call
(202) 720-0391.
SUPPLEMENTARY INFORMATION:
Executive Order 12866 and Regulatory Flexibility Act
This rule has been determined to be ``non-significant'' for the
purposes of Executive Order 12866 and therefore has not been reviewed
by the Office of Management and Budget.
Also, pursuant to the requirement set forth in the Regulatory
Flexibility Act (RFA), AMS has considered the economic impact of this
action on small entities. Accordingly, AMS proposes this initial
regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. The action described
herein is being taken for several reasons, including that additional
user fee revenues are needed to cover the costs for: (1) Providing
current program operations and services; (2) improving the timeliness
in which inspection services are provided; and (3) improving the work
environment.
AMS regularly reviews its user-fee financed programs to determine
if the fees are adequate. The Fresh Products Branch (FPB) has and will
continue to seek out cost saving opportunities and implement
appropriate changes to reduce its costs. Such actions can provide
alternatives to fee increases. FPB has reduced costs by approximately
$2 million. However, even with these efforts, FPB's existing fee
schedule will not generate sufficient revenue to cover program costs
while maintaining the Agency mandated reserve balance. Revenue
projections for FPB's destination market inspection work during FY-2006
are $15.3 million with costs projected at $20.4 million and an end-of-
year reserve balance of approximately $12.7 million. However, this
reserve balance is due in part, to appropriated funding received in
October 2001, for infrastructure, workplace, and technological
improvements. FPB's costs of operating the destination market program
are expected to increase to approximately $21.6 million during FY-2007
and $22.5 million during FY-2008. Revenues are projected to be $15.3
million for end of the fiscal year. The reserve balance for FY-2007 and
FY-2008, will fall below the Agency's mandated four-month reserve
level. The reserve balance is projected to be approximately $6.5
million for FY-2007 (3.6 months) and approximately negative $600,000
for FY-2008 (-0.3 months).
This fee increase should result in an estimated average of $2.4
million in additional revenues per year (effective in FY-2007, if the
fees were implemented by October 1, 2006). However, fees would not be
increased until later in FY-2007. Further, as a result, the next fee
increase is delayed until March 2008 instead of the start of FY-2008.
These increases will not cover all of FPB's costs. FPB will need to
continue to increase fees in order to cover the program's operating
cost and maintain the required reserve balance. FPB believes that
increasing fees incrementally is appropriate at this time. Additional
fee increases beyond FY-2008 will be needed to sustain the program in
the future. However, we will continue to reduce costs, wherever
possible.
Employee salaries and benefits are major program costs that account
for approximately 80 percent of FPB's total operating budget. A general
and locality salary increase for Federal employees, ranging from 2.87
to 5.62 percent depending on locality, effective January 2006, has
significantly increased program costs and will continue to increase
costs at a similar rate in future years. This salary adjustment will
increase FPB's costs by over $700,000 per year. Increases in health and
life insurance premiums, along with workers compensation will also
increase program costs. In addition, inflation also impacts FPB's non-
salary costs. These factors have increased FPB's costs of operating
this program by over $600,000 per year.
Additional funds are necessary in order for FPB to continue to
cover the costs associated with additional staff and to maintain office
space and equipment. Additional revenues are also necessary to improve
the work environment by providing training and purchasing needed
equipment. In addition, FPB began in 2001, developing (with
appropriated funds) the Fresh Electronic Inspection Reporting/Resource
System (FEIRS) to replace its manual paper and pen inspection reporting
process. FEIRS was implemented in 2004. This system has been put in
place to enhance and streamline FPB's fruit and vegetable
[[Page 41886]]
inspection process, however additional revenue is required to maintain
FEIRS. FPB has also begun to cover the costs associated with the
Training and Development Center (TDC) in Fredericksburg, VA. A portion
of the appropriated funds received in October 2001, were for
infrastructure improvements including the development and maintenance
of the inspector TDC. With appropriated funding now depleted, FPB is
now obligated to support the TDC under revenues from the terminal
market user fee inspection program.
This rule should increase user fee revenue generated under the
destination market program by approximately 15 percent each fiscal
year. This action is authorized under the Agricultural Marketing Act of
1946 (AMA of 1946) (See 7 U.S.C. 1622(h)), which provides that the
Secretary of Agriculture may assess and collect ``such fees as will be
reasonable and as nearly as may be to cover the costs of services
rendered * * *'' There are more than 2,000 users of FPB's destination
market grading services (including applicants who must meet import
requirements \1\-- inspections which amount to under 2.5 percent of all
lot inspections performed). A small portion of these users are small
entities under the criteria established by the Small Business
Administration (13 CFR 121.201). There would be no additional
reporting, recordkeeping, or other compliance requirements imposed upon
small entities as a result of this rule. In compliance with the
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the information
collection and recordkeeping requirements in Part 51 have been approved
previously by OMB and assigned OMB No. 0581-0125. FPB has not
identified any other Federal rules which may duplicate, overlap or
conflict with this proposed rule.
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\1\ Section 8e of the Agricultural Marketing Agreement Act of
1937, as amended (7 U.S.C. 601-674), requires that whenever the
Secretary of Agriculture issues grade, size, quality or maturity
regulations under domestic marketing orders for certain commodities,
the same or comparable regulations on imports of those commodities
must be issued. Import regulations apply during those periods when
domestic marketing order regulations are in effect. Section 1308 of
the Farm Security and Rural Investment Act of 2002 (Pub. L. 107-
171), 7 U.S.C. 7958, required USDA among other things to develop new
peanut quality and handling standards for imported peanuts marketing
in the United States.
Currently, there are 14 commodities subject to 8e import
regulations: Avocados, dates (other than dates for processing),
filberts, grapefruit, kiwifruit, olives (other than Spanish-style
green olives), onions, oranges, potatoes, prunes, raisins, table
grapes, tomatoes and walnuts. A current listing of the regulated
commodities can be found under 7 CFR Parts 944, 980, 996 and 999.
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The destination market grading services are voluntary (except when
required for imported commodities) and the fees charged to users of
these services vary with usage. The impact on all businesses, including
small entities, is very similar. However, except for those persons who
are required to obtain inspections, most of these businesses are
typically under no obligation to use these inspection services, and,
therefore, any decision on their part to discontinue the use of the
services should not prevent them from marketing their products.
Further, even though fees will be raised, the increase is not excessive
and should not significantly affect these entities.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This action 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 this
rule. There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of this rule.
Action
The AMA of 1946 authorizes official inspection, grading, and
certification, on a user-fee basis, of fresh fruits, vegetables and
other products such as raw nuts, Christmas trees and flowers. The AMA
of 1946 provides that reasonable fees be collected from the users of
the services to cover, as nearly as practicable, the cost of the
services rendered. This rule would amend the schedule for fees and
charges for inspection services rendered to the fresh fruit and
vegetable industry to reflect the costs necessary to operate the
program.
AMS regularly reviews its user-fee financed programs to determine
if the fees are adequate. The Fresh Products Branch (FPB) has and will
continue to seek out cost saving opportunities and implement
appropriate changes to reduce its costs. Such actions can provide
alternatives to fee increases. FPB has reduced costs by approximately
$2 million. However, even with these efforts, FPB's existing fee
schedule will not generate sufficient revenue to cover program costs
while maintaining the Agency mandated reserve balance. Revenue
projections for FPB's destination market inspection work during FY-2006
are $15.3 million with costs projected at $20.4 million and an end-of-
year reserve balance of approximately $12.7 million. However, this
reserve balance is due in part, to appropriated funding received in
October 2001, for infrastructure, workplace, and technological
improvements. FPB's costs of operating the destination market program
are expected to increase to approximately $21.6 million during FY-2007
and $22.5 million during FY-2008. Revenues are projected to be $15.3
million for end of the fiscal year. The reserve balance for FY-2007 and
FY-2008, will fall below the Agency's mandated four-month reserve
level. The reserve balance is projected to be approximately $6.5
million for FY-2007 (3.6 months) and a negative $584,000 for FY-2008 (-
0.3 months).
Employee salaries and benefits are major program costs that account
for approximately 80 percent of FPB's total operating budget. A general
and locality salary increase for Federal employees, ranging from 2.87
to 5.62 percent depending on locality, effective January 2006, has
significantly increased program costs, and will continue to increase
costs at a similar rate in future years. This salary adjustment will
increase FPB's costs by over $700,000 per year. Increases in health and
life insurance premiums, along with workers compensation will also
increase program costs. In addition, inflation also impacts FPB's non-
costs. These factors have increased FPB's costs of operating this
program by over $600,000 per year.
Additional revenues are necessary in order for FPB to continue to
cover the costs associated with additional staff and to maintain office
space and equipment. Additional revenues are also necessary to continue
to improve the work environment by providing training and purchasing
needed equipment. In addition, FPB began in 2001, developing (with
appropriated funds) an automated system known as FEIRS, to replace its
manual paper and pen inspection reporting process. Approximately
$10,000 in additional revenue per month will be needed to maintain the
system. This system has been put in place to enhance FPB's fruit and
vegetable inspection processes. FPB has also begun to cover the costs
associated with the TDC in Fredericksburg, VA. A portion of the
appropriated funds received in October 2001, were for infrastructure
improvements including the development and maintenance of the inspector
TDC. With appropriated funding now depleted, FPB is now obligated to
support the TDC under revenues from the terminal market user fee
inspection program.
Based on the aforementioned analysis of this program's increasing
costs, AMS
[[Page 41887]]
will increase the fees for destination market inspection services. The
following table compares current fees and charges with the proposed
fees and charges for fresh fruit and vegetable inspection as found in 7
CFR 51.38. Unless otherwise provided for by regulation or written
agreement between the applicant and the Administrator, the changes in
the schedule of fees as found in Sec. 51.38 are:
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Service Current 2007 2008
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Quality and condition inspections of products each in quantities
of 51 or more packages and unloaded from the same land or air
conveyance:
Over a half carlot equivalent of each product...... $114.00 $131.00 $151.00
Half carlot equivalent or less of each product..... 95.00 109.00 125.00
For each additional lot of the same product........ 52.00 60.00 69.00
Condition only inspections of products each in quantities of 51
or more packages and unloaded from the same land or air
conveyance:
Over a half carlot equivalent of each product...... 95.00 109.00 125.00
Half carlot equivalent or less of each product..... 87.00 100.00 115.00
For each additional lot of the same product........ 52.00 60.00 69.00
Quality and condition and condition only inspections of products
each in quantities of 50 or less packages unloaded from the
same land or air conveyance:
For each product................................... 52.00 60.00 69.00
For each additional lot of any of the same product. 52.00 60.00 69.00
Lots in excess of carlot equivalents will be charged
proportionally by the quarter carlot...........................
Dock side inspections of an individual product unloaded directly
from the same ship:............................................
For each package weighing less than 30 pounds...... \1\2.9 \1\3.3 \1\3.8
For each package weighing 30 or more pounds........ \1\4.4 \1\5.1 \1\5.9
Minimum charge per individual product.............. 114.00 131.00 151.00
Minimum charge for each additional lot of the same 52.00 60.00 69.00
product....................................................
Hourly rate for inspections performed for other purposes during
the grader's regularly scheduled work week:
Hourly rate for non-carlot equivalent inspections 56.00 64.00 74.00
such as count, size, temperature, container, etc. or work
associated with inspections such as digital image services
will be charged at a rate that reflects the cost of
providing the service......................................
Overtime rate (per hour additional) for all inspections 29.00 33.00 38.00
performed outside the grader's regularly scheduled work week...
Holiday pay..................................................... 29.00 66.00 74.00
Hourly rate for inspections performed under 40 hour contracts 56.00 64.00 74.00
during the grader's regularly scheduled work week..............
Rate for billable mileage....................................... 1.00 1.15 1.32
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\1\In cents.
A notice of proposed rulemaking was published in the Federal
Register on December 1, 2006, (71 FR 69497). FPB received one comment
after the comment period closed.
As previously stated, because the FY-2007 fee increase in effect in
the latter part of the fiscal year, AMS is changing the effective date
of the FY-2008 fee increase to March 1, 2008, to provide a sufficient
amount of time between the two fee increases. Finally, the regulatory
text in the proposed section 51.38(e) is corrected to reflect separate
fees for overtime and holiday note that appeared in the supplementary
information section of the proposed rule.
List of Subjects in 7 CFR Part 51
Agricultural commodities, Food grades and standards, Fruits, Nuts,
Reporting and recordkeeping requirements, Trees, Vegetables.
0
For reasons set forth in the preamble, 7 CFR Part 51 is amended as
follows:
PART 51--[AMENDED]
0
1. The authority citation for 7 CFR Part 51 continues to read as
follows:
Authority: 7 U.S.C. 1621-1627.
0
2. Section 51.38 is revised to read as follows:
Sec. 51.38 Basis for fees and rates.
(a) When performing inspections of product unloaded directly from
land or air transportation, the charges shall be determined on the
following basis:
(1) Quality and condition inspections of products in quantities of
51 or more packages and unloaded from the same air or land conveyance:
(i) $131 ($151, on or after March 1, 2008) for over a half carlot
equivalent of an individual product;
(ii) $109 ($125, on or after March 1, 2008) for a half carlot
equivalent or less of an individual product;
(iii) $60 ($69, on or after March 1, 2008) for each additional lot
of the same product.
(2) Condition only inspection of products each in quantities of 51
or more packages and unloaded from the same land or air conveyance:
(i) $109 ($125, on or after March 1, 2008) for over a half carlot
equivalent of an individual product;
(ii) $100 ($115, on or after March 1, 2008) for a half carlot
equivalent or less of an individual product;
(iii) $60 ($69, on or after March 1, 2008) for each additional lot
of the same product.
(3) For quality and condition inspection and condition only
inspection of products in quantities of 50 or less packages unloaded
from the same conveyance:
(i) $60 ($69, on or after March 1, 2008) for each individual
product:
(ii) $60 ($69, on or after March 1, 2008) for each additional lot
of any of the same product. Lots in excess of carlot equivalents will
be charged proportionally by the quarter carlot.
(b) When performing inspections of palletized products unloaded
directly from sea transportation or when palletized product is first
offered for inspection before being transported from the dock-side
facility, charges shall be determined on the following basis:
(1) Dock side inspections of an individual product unloaded
directly from the same ship:
(i) 3.3 (3.8, on or after March 1, 2008) cents per package weighing
less than 30 pounds;
(ii) 5.1 (5.9, on or after March 1, 2008) cents per package
weighing 30 or more pounds;
[[Page 41888]]
(iii) Minimum charge of $131 ($151, on or after March 1, 2008) per
individual product;
(iv) Minimum charge of $60 ($69, on or after March l, 2008) for
each additional lot of the same product.
(2) [RESERVED]
(c) When performing inspections of products from sea containers
unloaded directly from sea transportation or when palletized products
unloaded directly from sea transportation are not offered for
inspection at dock-side, the carlot fees in ``a'' of this section shall
apply.
(d) When performing inspections for Government agencies, or for
purposes other than those prescribed in paragraphs (a) through (c) of
this section, including weight-only and freezing-only inspections, fees
for inspections shall be based on the time consumed by the grader in
connection with such inspections, computed at a rate of $64 ($74, on or
after March 1, 2008) per hour;
Provided, that:
(1) Charges for time shall be rounded to the nearest half hour;
(2) The minimum fee shall be two hours for weight-only inspections,
and one-half hour for other inspections;
(3) When weight certification is provided in addition to quality
and/or condition inspection, a one hour charge shall be added to the
carlot fee;
(4) When inspections are performed to certify product compliance
for Defense Personnel Support Centers, the daily or weekly charge shall
be determined by multiplying the total hours consumed to conduct
inspections by the hourly rate. The daily or weekly charge shall be
prorated among applicants by multiplying the daily or weekly charge by
the percentage of product passed and/or failed for each applicant
during that day or week. Waiting time and overtime charges shall be
charged directly to the applicant responsible for their incurrence.
(e) When performing inspections at the request of the applicant
during periods which are outside the grader's regularly scheduled work
week, a charge for overtime or holiday work shall be made at the rate
of $33 for overtime and $66 for holiday work ($38 for overtime and $74
for holiday work, on or after March 1, 2008) per hour or portion
thereof in addition to the carlot equivalent fee, package charge, or
hourly charge specified in this subpart. Overtime or holiday charges
for time shall be rounded to the nearest half hour.
(f) When an inspection is delayed because product is not available
or readily accessible, a charge for waiting time shall be made at the
prevailing hourly rate in addition to the carlot equivalent fee,
package charge, or hourly charge specified in this subpart. Waiting
time shall be rounded to the nearest half hour.
Dated: July 26, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-14826 Filed 7-31-07; 8:45 am]
BILLING CODE 3410-02-P
