Electronic Export Application and Certification Charge; Flexibility in the Requirements for Export Inspection Marks, Devices, and Certificates; Egg Products Export Certification, 42225-42235 [2016-14812]

Download as PDF 42225 Rules and Regulations Federal Register Vol. 81, No. 125 Wednesday, June 29, 2016 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 Food Safety and Inspection Service 9 CFR Parts 312, 322, 350, 362, 381, 590, and 592 [Docket No. FSIS–2009–0026] RIN 0583–AD41 Electronic Export Application and Certification Charge; Flexibility in the Requirements for Export Inspection Marks, Devices, and Certificates; Egg Products Export Certification OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 870 Food Safety and Inspection Service, USDA. ACTION: Final rule. AGENCY: RIN 3206–AM96 Federal Employees’ Group Life Insurance Program: Options B and C; Correction U.S. Office of Personnel Management. AGENCY: ACTION: Final rule; correction. The U.S. Office of Personnel Management (OPM) published a document in the Federal Register on May 5, 2016 (81 FR 26997) to amend the Federal Employees’ Group Life Insurance (FEGLI) regulation to provide a second reduction election opportunity for annuitants and compensationers enrolled in FEGLI Option B and Option C. This document makes a minor correction to that rule. SUMMARY: DATES: Effective June 29, 2016. FOR FURTHER INFORMATION CONTACT: Ronald Brown, Policy Analyst, (202) 606–0004, or by email to Ronald.Brown@opm.gov. We are correcting the final rule published May 5, 2016 (81 FR 26997). The final rule included a section entitled ADDRESSES. This section was included in error since the regulation is a final rule and OPM is not accepting further comments. In rule FR Doc. 2016–10539 published on May 5, 2016 (81 FR 26997) make the following correction. On page 26997, in the first column, remove the ADDRESSES section. mstockstill on DSK3G9T082PROD with RULES SUPPLEMENTARY INFORMATION: U.S. Office of Personnel Management. Jonathan Foley, Director, Planning and Policy Analysis. [FR Doc. 2016–15261 Filed 6–28–16; 8:45 am] BILLING CODE 6325–63–P VerDate Sep<11>2014 16:45 Jun 28, 2016 Jkt 238001 The Food Safety and Inspection Service (FSIS) is amending the meat and poultry inspection regulations to provide for an electronic export application and certification system. The electronic export application and certification system will be a component of the Agency’s Public Health Information System (PHIS). The PHIS Export Component will be available as an alternative to the paperbased export application and certification process. FSIS will charge an application fee to exporters that use the PHIS Export Component. FSIS is establishing a formula for calculating the fee. On an annual basis, the Agency will use the formula to update the fee and publish the new fee in the Federal Register. The updated fee will apply at the start of each calendar year. FSIS is also amending the meat and poultry export regulations to provide flexibility in the requirements for official export inspection marks, devices, and certificates. In addition, FSIS is amending the egg product export regulations to parallel the meat and poultry product export regulations. DATES: Effective Date: August 29, 2016. Applicability Date: The regulations that provide for an electronic export application and certification system for meat, poultry, and egg products; an electronic application fee; and the use of a 7-digit export mark or unique identifier will be applicable on June 29, 2017. These regulations include 9 CFR 312.8; 381.104; 322.2(a); 381.106(a); 590.407(a); 590.407(c) (unique identifier and 7-digit export mark provisions only); 350.7(e) through (g) and 362.5(e) SUMMARY: PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 through (g); 592.500(a); and 592.500(d) through (f). FOR FURTHER INFORMATION CONTACT: Daniel Engeljohn, Assistant Administrator, Office of Policy and Program Development, U.S. Department of Agriculture, 1400 Independence Avenue SW., Room 2147, Washington, DC 20250–3700, (202) 205–0495. SUPPLEMENTARY INFORMATION: Executive Summary On January 23, 2012, FSIS proposed to amend its regulations to provide for the PHIS Export Component, an electronic export application and certification system that would be available as an alternative to the paperbased application and certification process (77 FR 3159). The Agency also proposed amendments to provide exporters with flexibility in the official marking of exported products and to delete certain prescriptive practices from the regulations, such as the obsolete ‘‘upon request’’ poultry export certification provision (9 CFR 381.105(a)) and requirements for ‘‘triplicate’’ and ‘‘duplicate’’ forms (9 CFR 322.2 and 381.105) to allow for ‘‘copies’’ of the export certificates. In addition, FSIS proposed to organize and make parallel, to the extent possible, the regulatory language for the export application and certification of meat and poultry products and to amend the egg products export regulations to add export application and certification requirements. Because the PHIS Export Component will provide exporters with new service options, such as the ability to electronically submit, track, and manage their export applications, the Agency proposed to charge exporters a fee for the service. FSIS proposed a formula for calculating the fee based on recovering the Agency’s costs of maintaining and operating the PHIS Export Component. After review and consideration of all the comments submitted, FSIS is finalizing the proposed amendments, with modifications: • One component of the fee formula, direct inspection cost, has been deleted. Other cost components of the formula, e.g., technical support, export library maintenance, on-going operations and maintenance cost, and the number of export applications, have been updated. The export application fee has been recalculated based on the updated costs E:\FR\FM\29JNR1.SGM 29JNR1 mstockstill on DSK3G9T082PROD with RULES 42226 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Rules and Regulations and number of export applications. As noted above, the fee will take effect beginning on the applicability date of June 29, 2017. • The regulatory requirements for filing a copy of the export certificate with U.S. Customs and Border Protection (CBP) will be deleted from the regulatory text (9 CFR 322.2(e)). However, the Federal Meat Inspection Act’s (FMIA) statutory requirement and FSIS’s regulatory requirement that the product’s owner (e.g., exporter) or shipper obtain an export certificate from FSIS before the meat product departs from a U.S. port (21 U.S.C. 617; 9 CFR 322.4) remain in effect. • The regulatory text in 9 CFR 322.1(a) and 381.105(a) for marking the outside containers of exported products is modified to include stamping the pallet within the consignment, or closed means of conveyance transporting the consignment (e.g. truck, rail car, or ocean container). • Also, to make the regulations more clear, FSIS is amending the export certification regulations by changing the term ‘‘in lieu of certificates’’ to ‘‘replacement certificates’’ (9 CFR 322.2(b), 9 CFR 381.106(b), 590.407(b)). Beginning on the applicability date of June 29, 2017, FSIS will charge exporters that choose to utilize the PHIS Export Component a revised fee of $4.03 per application submitted. Automating the export application and certification process will provide a seamless, integrated, and streamlined approach to processing applications and certificates. It will likely reduce the exporter and inspection personnel workload and paperwork burden by reducing the physical handling and processing of applications and certificates. Adding export application and certification requirements to the egg products regulations will parallel the meat and poultry regulations. Total direct cost to the exporters is estimated at $2.3 million, assuming that the number of applications will remain at about 576,000 per year, based on recent application data. The indirect costs, which are indeterminate, will be the Internet service and the acquisition or upgrading of a current computer system to one that would be compatible with the PHIS. Under the final rule, exporters may continue to submit paperbased export applications to the Agency so as to not incur the additional fee required by this rule. Background On January 23, 2012, FSIS published the proposed rule, ‘‘Electronic Export Application and Certification Charge; Flexibility in the Requirement for Export VerDate Sep<11>2014 16:45 Jun 28, 2016 Jkt 238001 Inspection Marks, Devices, and Certificates; Egg Products Export Certification’’ (77 FR 3159). In it, the Agency proposed to amend the meat, poultry, and egg products regulations to provide for the PHIS Export Component, an electronic alternative to the paperbased export application and certification process. The Federal Meat Inspection Act (FMIA) (21 U.S.C. 601–695) and the Poultry Products Inspection Act (PPIA) (21 U.S.C. 451–470) provide for the export and certification of meat and poultry products. The FSIS meat and poultry export regulations set forth the requirements for the certification and export of federally inspected and passed meat and poultry products to foreign countries (9 CFR 312.8, 322.1 through 322.5 and 381.104 through 381.111). The Egg Products Inspection Act (EPIA) (21 U.S.C. 1031–1056) does not set forth specific provisions for the export of egg products. FSIS’s egg products inspection regulations provide that, upon request, an inspector may issue an egg product export certificate of wholesomeness. Exporters can present the certificate to foreign countries as certification that egg products were inspected and passed and are wholesome and fit for human consumption (9 CFR 590.402). The Agricultural Marketing Act (AMA) provides the Secretary of Agriculture with the authority to collect fees ‘‘as will be reasonable and as nearly as may be to cover the cost of the service rendered, to the end that agricultural products may be marketed to the best advantage, that trading may be facilitated, and that consumers may be able to obtain the quality product which they desire’’ (7 U.S.C 1622(h)). Under the authority of the AMA, the meat and poultry regulations provide that FSIS may make certifications regarding exported meat and poultry products meeting conditions or standards that are not imposed, or that are in addition to those imposed, by the meat and poultry regulations, the FMIA, or the PPIA (9 CFR 350.3(b) and 362.2(b)). FSIS collects fees and charges from establishments and facilities that request certification service in addition to the basic export certification of wholesomeness (9 CFR 350.7 and 362.5). The Public Health Information System (PHIS) FSIS is developing and, on the applicability date of June 29, 2017, will implement the PHIS Export Component that will integrate and automate the Agency’s paper-based export application and certification process PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 into one comprehensive and automated data-driven inspection system. Through the PHIS Export Component, exporters will be able to access their online account to electronically submit, track, and manage applications for export certificates. The PHIS Export Component will allow establishment management to apply for approval of establishments for export when required by the foreign country; create, revise, and submit Product Lists; cancel pending applications and certificates; request replacement (formerly ‘‘in lieu of’’) certificates; and return of exported products. The PHIS Export Component will include electronic data elements for the following export-related forms: the Application for Export Certificate (which includes the option for an ‘‘original’’ or ‘‘replacement’’ application); the Product List, which will be used by PHIS to capture the description of a product and other product-specific information; and the Application for the Return of Exported Products to the United States (used to notify FSIS when product is exported and then returned to the U.S. and to arrange for the product’s entry and reinspection by FSIS); and the Establishment Application for Export (used by FSIS to ensure specific establishment requirements defined by certain countries are met); once approved, the eligible establishment will be listed by country on the FSIS Web site (http://www.fsis.usda.gov/wps/ portal/fsis/topics/international-affairs/ exporting-products/eligible-usestablishments-by-country or http:// www.fsis.usda.gov/wps/portal/fsis/ topics/international-affairs/exportingproducts/export-library-requirementsby-country) and included in PHIS when the Export Component is implemented. After the applicability date of June 29, 2017, exporters can continue to submit the paper applications for export certification, but those who choose to do so will need to email, fax, or mail the completed application, and any additional information required by the foreign country, to FSIS for entry into PHIS at: Email: FSIS.billing@fsis.usda.gov. Mail: U.S. Department of Agriculture, Food Safety and Inspection Service, FMD, Financial Services Center, P.O. Box 9205, Des Moines, IA 50306–9948. Before the rule’s applicability date of June 29, 2017, FSIS will also announce, in the Constituent Update, a dedicated fax number for paper application submissions. FSIS intends to enter data from complete paper export certificate applications into PHIS typically within E:\FR\FM\29JNR1.SGM 29JNR1 mstockstill on DSK3G9T082PROD with RULES Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Rules and Regulations 3–5 business days after receipt of an application by FSIS. However, the entry may take longer in some cases. By contrast, export certificate applications submitted electronically will be instantly and directly submitted into PHIS for review. Therefore, processing the paper-based export certificate applications will be slower than the applications that are submitted electronically. FSIS will also enter Product List data for applicants that choose to use paper. After FSIS enters the data from the paper export certificate application into PHIS, the application data will follow the same approval process in PHIS as application data submitted by an applicant through PHIS with Level 2 eAuthentication. After FSIS approves an Application for Export Certificate, an FSIS inspector will issue a signed export certificate to the exporter. FSIS will continue to process and charge for after-hours (overtime or holiday) applications as a reimbursable service (9 CFR 307.5 and 307.6; 381.38 and 381.39; 590.126 through 590.130), as well as requests for certification that are in addition to the basic export certification (9 CFR 350.3(b), 350.7, 362.2(b), and 362.5). The PHIS Export Component will initially have the ability to produce paper certificates that can be signed by FSIS with either an ink signature, as is done currently, or with a secure signature image derived from an official FSIS Identification card. The type of signature will be determined by the foreign government’s requirements. FSIS will print paper certificates, generated by PHIS and issue the signed paper certificates to the exporter. Foreign governments will also have the capability to view all export certificates for product intended for their country issued by FSIS in PHIS, as a digital image (portable document format, (PDF)), through an FSIScontrolled log-in feature (Foreign Country Log-in). Foreign governments may access the Foreign Country Log-in using Level 2 eAuthentication. Prior to implementation of the PHIS Export Component, FSIS will notify foreign governments when it is time to register for Level 2 eAuthentication. To learn more about Level 2 eAuthentication and how to register for an account, please visit https://www.eauth.usda.gov/ MainPages/eauthWhatIsAccount.aspx. In the future, FSIS also intends to support electronic export certification in PHIS. Electronic export certification is the government-to-government transmission of certification data and is the electronic equivalent of a paper certificate. When developed and VerDate Sep<11>2014 16:45 Jun 28, 2016 Jkt 238001 implemented, electronic export certification will allow FSIS to transfer certification data directly to the foreign government’s competent authority. Electronic certification will allow the foreign government’s competent authority to view and authenticate the export certification data. FSIS will notify the public—including industry, importing countries, and other interested stakeholders—regarding the future development and implementation of electronic export certification, through a U.S. Federal Register Notice, World Trade Organization (WTO) notification, FSIS Constituent Update, or other appropriate means. The PHIS Export Component will maintain a record of each export certificate issued, whether the certificate is paper-based, digital image, or in the future, electronic. FSIS considers any data and the electronic records (applications and certifications) submitted and processed through the PHIS to be equivalent to paper records. Export applications and certifications transmitted electronically are official. To access and use the PHIS Export Component, exporters will need to register for a USDA eAuthentication account with Level 2 access. An eAuthentication account enables individuals within and outside of the USDA to obtain user-identification accounts to access a wide range of USDA applications through the Internet. The Level 2 access will provide to users the ability to conduct official electronic business transactions. To register for a Level 2 eAuthentication account, the user will need to have access to the Internet and a valid email address. The Agency plans to provide exporters with more specific, detailed information on how to access PHIS to submit and manage export certificate applications, including guidance to exporters for accessing and navigating the PHIS Export Component. Any information concerning the implementation of the PHIS Export Component will be posted on the Agency’s Web site at http://www.fsis. usda.gov/wps/portal/fsis/topics/ international-affairs/exportingproducts. PHIS Export Component Implementation To provide for an orderly transition to the PHIS Export Component, FSIS considered several implementation options, including a phased-in implementation approach, which would benefit FSIS and industry by allowing time and flexibility to identify and address any PHIS export issues that may arise. The Agency also considered PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 42227 initially implementing the Export Component with countries that import the highest volume of FSIS-regulated product, or with neighboring countries such as Canada and Mexico. In addition, the Agency considered whether or not to accommodate the transfer of multiple export applications batch files sent from exporters to the PHIS Export Component. On April 2, 2015, to solicit public comment and input on implementation issues, the Agency published ‘‘Issues on Implementation of Export Module,’’ on regulations.gov (http:// www.regulations.gov/#!search Results;rpp=25;po=0;s=FSIS-2015-00180004;fp=true;ns=true). The document outlined the Agency’s thinking on implementation options and posed specific implementation questions for industry and consumer input. The comment period closed on May 5, 2015. Also on April 2, 2015, FSIS held a conference call with members of consumer advocacy groups and industry representatives to request feedback on the implementation of the PHIS Export Component. During the call, the Agency announced that it had published PHIS Export Component implementation issues and questions on regulations.gov for public comment. The Agency published the transcript of the conference call on its Web site at: http:// www.fsis.usda.gov/wps/wcm/connect/ abc21785-3a1a-43bc-b78981187a0e67bb/PHIS-export-conference. pdf?MOD=AJPERES. In addition, on April 3, 2015, FSIS announced, in a Constituent Update, a request for feedback on the implementation of the PHIS Export Component (http://www.fsis.usda.gov/ wps/wcm/connect/805c2534-dfec-414b9342-9a8effe2c5b8/Consti Update040315.pdf?MOD= AJPERES&CONVERT_ TO=url&CACHEID=805c2534-dfec414b-9342-9a8effe2c5b8). In response to the implementation issues and questions, commenters generally supported a phased-in approach, starting with one country, and expanding to additional countries only after potential initial implementation issues have been resolved. Commenters did not recommend specific countries, although some suggested beginning with lowvolume countries that maintain relatively simple export certification requirements. Commenters also supported including batching capabilities which will allow applicants to bundle multiple applications into a single file, and noted specifically that, as the PHIS Export Component is implemented, companies will have to E:\FR\FM\29JNR1.SGM 29JNR1 42228 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Rules and Regulations operate parallel systems for both batch certificates and individual certificates. In addition, industry association members affirmed that they could accommodate both a limited initial implementation of the PHIS Export Component and traditional certification processes for countries not yet included in PHIS, depending on acceptance by foreign governments. Based on the comments received, FSIS is developing a comprehensive phased-in implementation plan of the PHIS Export Component. Initially, beginning on the applicability date of June 29, 2017, the Agency will implement the PHIS Export Component with one foreign country or limited number of foreign countries, and then gradually expand implementation to additional countries. In addition, the PHIS Export Component will include batch file capability, which will be aligned with the rollout of countries in the phased-in implementation. To maintain system functionality, FSIS reserves the right to place limits on batching as needed or required by PHIS, and will process applications in the order that they are received. In preparing for phased-in implementation, FSIS is evaluating criteria, such as the foreign country’s product volume and product diversity, geographic proximity to the United States, and complexity of certification requirements. FSIS will communicate with foreign countries and industry regarding preparations for the phased-in implementation plan, and will seek additional public input as needed. The rule’s electronic application and fee provisions will not be applicable until June 29, 2017. FSIS will provide additional information through Federal Register notices on implementation prior to the applicability date, including specific information on which countries will initially receive export certificates through the new Export Component. mstockstill on DSK3G9T082PROD with RULES Proposed and Final Rule Amendments Export Applications and Certificates As discussed in the proposed rule (77 FR 3160), the meat and poultry products inspection regulations provide a paperbased export application and certification process (9 CFR 312.8, 322.2, 381.105, and 381.106). The meat regulations provide that, upon application of the exporter, FSIS inspectors are authorized to issue export certificates (9 CFR 322.2(a)). The poultry products regulations provide that, upon the exporter’s request or application, FSIS inspectors are authorized to issue export certificates (9 CFR 381.105(a)). The Agency proposed to amend the VerDate Sep<11>2014 16:45 Jun 28, 2016 Jkt 238001 regulations to provide that applications for export certification may be either paper-based or electronic and to delete the ‘‘upon request’’ certificate provision in the poultry products regulations, because the ‘‘upon request’’ provision is obsolete and does not reflect current export certification practices. FSIS also proposed to delete the export certificate form requirements in 9 CFR 312.8(b) and 381.106, because these regulations contain specific certificate requirements and instructions for Agency inspection personnel, e.g., signature by a program employee and bearing a letterhead and the official seal of the U.S. Department of Agriculture. The Agency provides instructions to inspection program personnel for export application approval and issuance of export certificate instructions in FSIS Directive 9000.1, Revision 1 http:// www.fsis.usda.gov/wps/portal/fsis/ topics/regulations/directives/9000series. In addition, FSIS proposed to delete the references in 9 CFR 322.2 and 381.105 to the issuance of ‘‘triplicate’’ and ‘‘duplicate’’ certificates to allow for ‘‘copies’’ of the export certificate to be distributed to the required parties and to accompany the product. The Agency also proposed to delete the provisions in 9 CFR 322.2(e) for filing a copy of the export certificate with the U.S. Customs and Border Protection (CBP) within four (4) business days of the clearance of the vessel at the time of filing the complete manifest. FSIS also proposed to amend the meat and poultry export regulations to organize and make parallel, to the extent possible, the regulatory language for meat and poultry products. This rule finalizes all of the proposed amendments. Export Inspection Marks and Devices As discussed in the proposed rule (77 FR 3161), after the export application is approved, inspection program personnel provide the export stamp and authorize the establishment to mark products destined for export. As required in 9 CFR 322.1(a) and 381.105(a), each shipping container is marked with the official export stamp bearing the serial number on the export certificate (of note, beginning on the applicability date of June 29, 2017, FSIS is changing the number of digits in the serial number that appears on both the export stamp and the corresponding export certificate from six to seven). Both 9 CFR 312.8(a) and 381.104 provide for an official device to apply the official export stamp. FSIS proposed to amend 9 CFR 312.8(a) and 381.104 to provide an PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 alternative method of identifying and marking containers of product destined for export. The proposed flexibility would permit exporters to mark product containers with a unique identifier that links the exported product to the export certificate. The Agency proposed the flexibility because of the technological advancements that have been made since the export marking and devices regulations were initially promulgated. This rule finalizes the proposed amendments, but will not make the unique identifier provisions applicable until June 29, 2017. In response to a comment, the Agency is also providing greater flexibility by permitting stamping of the pallet within the consignment, or closed means of conveyance transporting the consignment (e.g. truck, rail car, or ocean container), provided that the stamp or unique identifier links the consignment to the corresponding export certificate. FSIS intends ‘‘consignment’’ to mean the product represented on the export certificate (9 CFR 322.2(c)), 9 CFR 381.105(c), 9 CFR 590.407(b)), and that the stamped pallet will be securely enclosed (e.g. shrinkwrapped or other effective means). The pallet stamp should be a single mark on the pallet or pallets included within the consignment. Pallet stamping provisions will be effective on August 29, 2016. Offering these options for stamping is an outgrowth of FSIS’s proposal to give more flexibility in the export stamp process. While FSIS is offering this flexibility, exporters will still have to meet any stamping requirements of the importing foreign country. Egg Products Export Regulations As discussed, the EPIA does not set forth specific provisions for the export of egg products, and the FSIS egg products inspection regulations do not include requirements for exported egg products. The egg products inspection regulations provide that, upon request, an inspector may issue an egg product inspection and grading certificate. The exporter can present the certificate to foreign countries as certification that egg products were inspected and passed and are wholesome and fit for human consumption (9 CFR 590.402). As discussed in the proposed rule (77 FR 3161), because almost all foreign countries require export certification for imported egg products, FSIS proposed to amend the egg products export regulations to add export application and certification requirements in 9 CFR 590.407. The proposed section paralleled, to the extent possible, the export requirements in the meat and poultry regulations that provide for the E:\FR\FM\29JNR1.SGM 29JNR1 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Rules and Regulations 42229 The Agency also provided the following calculation and export application fee based on the 2012 basetime rate, the best estimates for ongoing operations and maintenance, and an estimated number of export applications it would receive: In response to comments that the export application formula and fee should not include direct inspection labor costs for inspection personnel, FSIS deleted this cost from the export application formula and fee. In addition, the Agency has updated the costs and the estimated number of export applications included in the formula, and in response to comments provided more explanation of the costs: The 2015 PHIS Export Application Fee is based on the following costs, rates, and best available data: • Technical Support Costs. The cost of providing technical support, which includes service desk support, is $125,000.1 Service Desk support consists of activities like resolving user problems with the application services, identifying web browser compatibility issues, and resolving access issues to authorized areas of the system. • Export Library Maintenance. The cost for funding two full-time employees to provide export library functions is $302,098.2 Export library maintenance supports the PHIS Export Component and includes the writing, testing, and maintenance of complex business rules for evaluating the export application that is submitted into the PHIS export system. The business rules allow the system to determine product eligibility before the system accepts the application and transmits it to inspection program personnel. The business rules also facilitate the type of export certification required by the foreign government that will be issued when the application is accepted. This work supports the PHIS Export Component and is not part of current export library functions. In addition, there will be continuous updates to the system. • On-going Operations and Maintenance Costs. The cost of providing on-going operations and maintenance, including improvements and necessary repairs to keep the system responsive to users’ needs, is $1,894,156.3 These costs cover activities such as modifying the application based on changes in requirements or user needs, adding functionality based on foreign regulatory changes, upkeep of the system to ensure a secure operating environment that protects the data, and costs to operate the system components. This cost may increase in future years based on GSA schedule increases in labor rates and other factors. • eAuthentication Costs. 1 Based on fixed price contract for contractor Service Desk support. 2 Actual costs of 2016 GS-schedule salaries and benefits for two Export Library FTEs. mstockstill on DSK3G9T082PROD with RULES Charge for Electronic Export Application and Certification Process As discussed above and in the proposed rule (77 FR 3161), under the authority of the AMA, the meat and poultry inspection regulations provide that when exporters request certification that is in addition to the basic export certification of wholesomeness required by regulation, FSIS charges and collects VerDate Sep<11>2014 16:45 Jun 28, 2016 Jkt 238001 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 3 Operations and Maintenance Costs = Application maintenance costs ($1,451,210/yr) + Non-development-related Export O&M costs ($442,946/yr). E:\FR\FM\29JNR1.SGM 29JNR1 ER29JN16.013</GPH> CFR 350.3(b), 362.2(b), and 592.20(d)). These additional export certifications will be charged at the appropriate basetime, overtime, or holiday rate, depending on when the certification service is provided. The basic export certification, if provided outside of an inspector’s normal shift, is also charged at the appropriate rate (overtime or holiday). The Agency proposed the following formula for assessing its annual cost: The labor costs (i.e., direct inspection labor cost for inspection personnel + technical support provided to users of the Export Component + export library maintenance) + the Information and Technology (IT) costs (i.e., on-going operations + maintenance of the system costs + eAuthentication cost) divided by the number of annual export applications: ER29JN16.012</GPH> fees from establishments and facilities that request this service (9 CFR 350.3(b), 350.7, 362.2(b), and 362.5). Exporters may also request additional certifications to meet requirements imposed by the importing foreign countries. The PHIS’s Export Component will provide new service options to exporters enabling them to electronically submit, track, and manage their export applications. Therefore, to cover the costs of providing the electronic application and certification service, the Agency proposed to establish a fee to exporters that utilize the PHIS Export Component. The fee is for the application for the basic export certificate. Any additional certifications that are imposed by the importing foreign country will be charged as a certification service, as provided in 9 application, certification, and marking of product destined for export. FSIS also proposed to add 9 CFR 592.20(d), which parallels 9 CFR 350.3(b) and 362.2(b) and provides that export certifications that products meet conditions or standards that are not imposed, or that are in addition to those imposed, by the egg products regulations will be subject to a charge as a reimbursable service. This rule finalizes the proposed amendments. 42230 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Rules and Regulations learn more about eAuthentication and how to register for an account, visit https://www.eauth.usda.gov. FSIS may be charged for Level 2 Customer accounts separately in the future, and these costs may increase in future years. As an example, the annual future cost could be $56.88 per Level 2 account and would be factored on the number of export business customers annually. • The estimated number of yearly export applications, determined using data obtained from FSIS’s Office of Field Operations, is 576,192.4 The final export application fee formula and fee are below: The fee will be calculated on an annual basis, and the updated fees will apply at the start of each calendar year. FSIS will publish a Federal Register notice announcing the fee approximately 30 days prior to the start of each new calendar year. Response: FSIS agrees that the direct inspection labor costs included in the proposed export application formula should be removed from the export application formula. However, as discussed in the proposed rule (77 FR 3161), under the authority of the Agricultural Marketing Act (AMA), the meat and poultry inspection regulations provide that when exporters request certification that is in addition to the basic export certification (e.g. as required by a foreign country and documented in the FSIS Export Library), FSIS charges and collects fees from establishments and facilities that request this service (9 CFR 350.3(b), 350.7, 362.2(b), and 362.5). Because the PHIS Export Component provides new service options to exporters for electronic application and certification, the formula will continue to include the non-direct inspection based costs of the system for FSIS personnel (or contracted support as necessary) to operate and maintain the PHIS Export Component, including technical support for users, export library maintenance, and information technology costs. In this final rule, in addition to deleting the direct inspection costs from the export application formula, the Agency also updated the costs and the estimated number of export applications included in the formula. The final formulas and fees are discussed above. Comment: Comments from trade organizations stated that FSIS needs to work closely with exporters to ensure that the system is compatible with industry needs, and that it requires minimal manual input. One industry comment stated that the system must have the ability to accept some type of load files from companies that intend to use the system, and that it must have the ability to interface through Electronic Data Interchange. These commenters also recommended that FSIS communicate with U.S. trading partners and exporters to ensure that the Export Component would be acceptable. Response: As discussed above, in April 2015, FSIS met with and solicited comments from stakeholders on the system’s ability to accept batch files. In June 2015, FSIS met with stakeholders to provide an update on the progress of PHIS Export Component development and will continue to work with exporters to ensure that industry is aware of the system’s capabilities. The Agency intends to provide the capability for batch file processing of applications. FSIS will involve industry in its user acceptance testing for the Export Component. FSIS notified the World Trade Organization (WTO) of the proposed rule on January 23, 2012, consistent with our obligations under the WTO Technical Barriers to Trade Agreement. This notification gave all WTO Members the chance to review and comment on the proposal at a point when meaningful changes could still be made. In addition, FSIS is planning a formal outreach strategy to ensure that foreign Notification of Changes to Replacement Certificate Terminology and Practice FSIS is amending the export certification regulations by changing the term ‘‘in lieu of certificates’’ to ‘‘replacement certificates’’ (9 CFR 322.2(b), 9 CFR 381.106(b), 9 CFR 590.407(b)). This change is intended to make FSIS regulations more clear. This change will not cause problems for the industry or international community because the term ‘‘replacement certificates’’ is generally well understood. mstockstill on DSK3G9T082PROD with RULES Comments on and Responses to the Proposed Rule FSIS received 8 comments from domestic trade associations and domestic exporting establishments. Comment: Several commenters stated the Federal Meat Inspection Act (FMIA) and Poultry Products Inspection Act (PPIA) (21 U.S.C. 695 and 468) provide that the cost of inspection rendered, except the cost of overtime and holiday work, shall be borne by the United States, and therefore, the export application formula and fee should not include direct inspection labor costs for inspection personnel. 4 FSIS internal survey of Ten District Offices on June 10, 2013. VerDate Sep<11>2014 16:45 Jun 28, 2016 Jkt 238001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\29JNR1.SGM 29JNR1 ER29JN16.014</GPH> The cost of providing eAuthentication is currently zero. eAuthentication is a single sign-on application that allows users to securely access multiple USDA applications, including the PHIS Export Component. To access the PHIS Export Component users need to register for a USDA eAuthentication account. To mstockstill on DSK3G9T082PROD with RULES Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Rules and Regulations governments and U.S. exporters have every opportunity to understand the Export Component. Comment: One commenter asked whether the paper-based export process would continue to be available when the PHIS Export Component is implemented, and whether PHIS will be used to print export certificates. Response: Export applicants can submit a paper version of the application for export process rather than use the PHIS Export Component. If applicants choose to submit the paper application, FSIS will enter the data into the PHIS Export Component for processing and provide the paper export certificate to the applicant when it has been approved. Exporters who choose to use paper-based applications will need to email, fax, or mail the completed applications, and any additional information required by the foreign country, to FSIS for entry into PHIS at: Email: FSIS.billing@fsis.usda.gov Mail: U.S. Department of Agriculture, Food Safety and Inspection Service, FMD, Financial Services Center, P.O. Box 9205, Des Moines, IA 50306–9948. FSIS will provide a dedicated fax number as well, and will announce availability of this number in a Constituent Update before the rule’s effective date. Export applicants with an eAuthentication account can submit and process their application electronically (for a fee), and if the foreign country requires a paper certificate, FSIS will print an approved certificate and provide it to the applicant. Comment: One commenter requested clarification on how FSIS will handle after hours (second shift exports), weekend, and holiday export certification applications. Response: FSIS inspectors who are on-duty during those times will process export applications received through PHIS in a similar manner to the current process. The inspector will receive the export application in PHIS, review the application, conduct a re-inspection of the product according to current procedures, approve the application, and issue the export certificate. For exporters using paper applications, FSIS will continue to process and charge for after-hours (overtime or holiday) applications as a reimbursable service (9 CFR 307.5–6; 381.38–39; 590.126–130). Comment: Comments from trade organizations stated that FSIS should not delete the regulatory language in 9 CFR 322.2(e) for filing a copy of the export certificate with CBP within four (4) business days of the clearance of the vessel at the time of filing the complete manifest. These commenters stated that VerDate Sep<11>2014 16:45 Jun 28, 2016 Jkt 238001 these regulations are necessary so that establishments and exporters know that they are required to send a copy of the export certificate to CBP. Response: FSIS proposed to delete the provisions in 9 CFR 322.2(e) initially because the filing of the export manifest with CBP within 4 business days is required under CBP regulations (19 CFR 4.75(b)). Upon further reflection, the FMIA requires the product’s owner (e.g., the exporter) or shipper to obtain an export certificate from FSIS before the product departs from a U.S. port (21 U.S.C. 617). Vessel clearance is under CBP’s jurisdiction, and because FSIS provides the export certificate to the exporter prior to clearance with CBP, the intent of 21 U.S.C. 617 is satisfied. In terms of accounting for export certificates, the PHIS Export Component will allow FSIS to electronically inventory and track export certificate information, thus eliminating the cumbersome transfer of export certificate copies or certificate data across multiple steps in the supply chain to CBP. Furthermore, no direct transfer from FSIS to CBP is needed, because the controls in place between the United States and the importing countries are sufficient to eliminate the burden of transferring data (or copies of the certificate) between Federal agencies. Therefore, in this final rule, FSIS is deleting 9 CFR 322.2(e). While this change removes unnecessary export requirements internal to the United States, exporters are responsible for obtaining the appropriate export certification before departure. Comment: An industry comment stated that certain countries require an original signature on export certificates and questioned how original signatures would be handled in the PHIS Export Component. Response: For countries that require an original signature on the certificate, PHIS will have the capability of printing a paper certificate that will be signed with an ink signature by an FSIS official. Comment: A trade organization stated that the Agency needs to provide greater flexibility in export stamping. According to the commenter, requiring facilities to place export stamps on every single case of product is costly and has little practical value. The commenter asked that the Agency provide an option for establishments to use FSIS-issued export stamps on whole pallets instead of stamping every container on a pallet. One comment also requested that FSIS define the term ‘‘unique identifier.’’ Response: The Agency proposed (9 CFR 312.8(a) and 381.104) that PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 42231 exporters could use a unique identifier, linking the exported product to the export certificate as an alternative to using the official export stamp. Under the final rule, in order to provide greater flexibility and alternative methods of identifying and stamping product, FSIS will permit stamping of the pallet within the consignment or closed means of conveyance transporting the consignment (e.g. truck, rail car, or ocean container), provided that the stamp or unique identifier links the consignment to the corresponding export certificate. FSIS intends ‘‘consignment’’ to mean the product represented on the export certificate (9 CFR 322.2(c)), 9 CFR 381.105(c), 9 CFR 590.407(b)), and that the stamped pallet will be securely enclosed (e.g. shrinkwrapped or other effective means). Offering these options for stamping is an outgrowth of FSIS’s proposal to give more flexibility in the export stamp process. It is important to note that exporters must still meet any stamping requirements of the importing foreign country, regardless of the flexibility offered by FSIS in export stamping. To provide greater flexibility and accommodation of technological change, FSIS will not narrowly define the term ‘‘unique identifier’’ within its regulations, beyond the requirement that it must link the exported product to the export certificate issued by inspection personnel. In general, FSIS envisions the alternative mark as an alphanumeric sequence that uniquely identifies the shipment and links it to the export certificate. In the future, other methods and technologies could be used to produce unique identifiers, as verified by FSIS and determined acceptable by the importing country. Exporters’ use of unique identifiers as an alternative mark will be dependent on acceptance by the importing country, as documented in the FSIS Export Library. As noted above, the unique identifier provisions will not be applicable until June 29, 2017. FSIS will work closely with importing countries to determine their needs related to identifying the product and will explain the alternative of using a unique identifier in place of the export stamp. Executive Orders 12866 and 13563, and the Regulatory Flexibility Act Executive Orders (E.O.) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and E:\FR\FM\29JNR1.SGM 29JNR1 42232 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Rules and Regulations equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This final rule has been designated a ‘‘nonsignificant’’ regulatory action under section 3(f) of E.O. 12866. Accordingly, the rule has not been reviewed by the Office of Management and Budget (OMB). FSIS has adopted the preliminary regulatory impact analysis with an update to the paperwork burden estimates for egg plants. Cost of the Final Rule Based on the formula established in this rule, for exporters that choose to utilize this new tool, the direct cost would be $4.03 per export application. The application fee will be determined annually based on the formula. The total cost to an exporter would depend on the number of electronic applications processed. An exporter that processes only a few applications per year would not likely experience a significant economic impact. Assuming that the number of applications will remain about 576,000, based on recent application data,5 and exporters apply for all of these certificates through this new portal, the total direct cost to the exporting industry, when the PHIS Export Component is fully implemented with all countries, will be approximately $2.3 million per year. The indirect costs, which are indeterminate, will be the Internet service and the acquisition or upgrading of a current computer system to one that would be compatible with the PHIS. Under the final rule, exporters may continue to submit paper-based export applications with the Agency as to not incur the additional fee required by this rule. Egg plants will incur additional costs as a result of this final rule. The total annual paperwork burden to egg exporters to fill out the paper-based export application is estimated to be 3,333 6 hours a year or $73,000 per year.7 The average exporter burden 5* ** mstockstill on DSK3G9T082PROD with RULES 6 Hours are derived from estimates of 200 for the number of exporters, 100 for the number of responses per exporter, and 10 minutes to complete and submit an application. (200 * 100 * 10/60) 7 FSIS used the Occupational Code 43–5071 Shipping, Receiving, and Traffic Clerks mean hourly wage (May 2014) of $15.27. (http:// www.bls.gov/oes/current/oes435071.htm) The estimated benefits percent share of total compensation for private industry 30.1%, with the remaining 69.9% attributed to wages and salaries. Therefore, the factor needed to multiply to wage rate to determine total compensation rate is: (30.1%/69.9%) + 1 = 1.43. BLS Report available at: VerDate Sep<11>2014 16:45 Jun 28, 2016 Jkt 238001 would be 16.7 hours or approximately $360 per exporter. There is no annual paperwork burden to meat and poultry exporters since they are currently filling out the export application. Expected Benefits of the Final Rule The final rule will likely reduce the exporter and inspection personnel workload and paperwork burden by reducing the physical handling and processing of applications and certificates. The reduction in workload and paperwork burden is based on the greater efficiency of processing applications electronically and the number of applications filed electronically. In the future, the PHIS Export Component will facilitate the electronic government-to-government exchange of export applications and certifications, which will assist in the resolution of allegations of fraudulent transactions such as false alterations and reproductions. An indirect benefit of automating the export application and certification system is that there will be an automatic, electronic recordkeeping of the number and types of exporters, the types of products exported to various countries, and the number of applications and certificates issued through PHIS. Further, the electronic export system will provide a streamlined approach to processing applications and certificates. As a result, there will be additional unquantifiable benefits because PHIS automates the verification of eligibility and accuracy of certifications needed and will speed up the process for these establishments. Also, any potential documentation problems are likely to be resolved electronically before the product arrives at the port, and as a result, the products will likely move through ports faster than they do currently. Thus, storage costs to exporters will be reduced, and the product will reach its destination more quickly. Even exporters that submit a paper-based application will benefit from the PHIS Export Component. FSIS will enter the application into the PHIS, and the FSIS verifications activities regarding eligibility and accuracy of certifications will be automated. FSIS Budgetary Effects If fully adopted by the industry and our trading partners when the PHIS Export Component is fully implemented, FSIS will recover the costs of providing electronic application and certification service. http://www.bls.gov/news.release/ecec.nr0.htm. The total wage and benefit rate is $15.27 * 1.43. PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 Regulatory Flexibility Analysis The FSIS Administrator certifies that, for the purposes of the Regulatory Flexibility Act (5 U.S.C. 601–602), the final rule will not have a significant impact on a substantial number of small entities in the United States. There are 6,074 meat, poultry, and egg products establishments 8 that could possibly be affected by this final rule since all are eligible to export. Of this number, there are about, 391 large establishments, 2,505 small federally inspected establishments (with more than 10 but less than 500 employees) and 3,178 very small establishments (with fewer than 10 employees) based on HACCP Classification.9 Therefore, a total of 5,683 small and very small establishments could be possibly affected by this rule. For the meat, poultry, and egg products industries, small and very small exporters, like large exporters, would incur the $4.03 fee only if they file their export application electronically. If they choose to submit the paper application, they will bear no additional cost compared to now. If exporters submit their applications electronically, the average annual cost from this rule would be $382.00 per exporter (576,192 export applications per year / 6,074 meat, poultry, and egg products establishments * $4.03 per application). For the approximately 200 egg product exporters, FSIS expects the number of applications submitted to be 20,000 (200 exporters * 100 submissions 10) for an estimated total cost of $81,000. The cost per exporter would be $403 (20,000 applications * $4.03 / 200). If small establishments require fewer applications, then the cost per small establishment is even lower. Therefore, the Agency believes that the rule will not have a significant economic impact on a substantial number of small entities. Paperwork Reduction Act In accordance with section 3507(d) of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the information collection was approved under 0583– 0153. This rule contains no other paperwork requirements. Copies of this information collection assessment can be obtained from Gina Kouba, Paperwork Reduction Act Coordinator, Food Safety and Inspection 8 Establishment numbers from FSIS’s Public Health Information System, October 2014. 9 Ibid. 10 Estimate is from the paperwork reduction analysis. E:\FR\FM\29JNR1.SGM 29JNR1 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Rules and Regulations Executive Order 12988 This final rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under this rule: (1) All State and local laws and regulations that are inconsistent with this rule will be preempted; (2) no retroactive effect will be given to this rule; and (3) no administrative proceedings will be required before parties may file suit in court challenging this rule. E-Government Act FSIS and USDA are committed to achieving the purposes of the EGovernment Act (44 U.S.C. 3601, et seq.) by, among other things, promoting the use of the Internet and other information technologies and providing increased opportunities for citizen access to Government information and services, and for other purposes. Executive Order 13175 This final rule has been reviewed in accordance with the requirements of Executive Order 13175, Consultation and Coordination with Indian Tribal Governments. The review reveals that this regulation will not have substantial and direct effects on Tribal governments and will not have significant Tribal implications. USDA Non-Discrimination Statement No agency, officer, or employee of the USDA shall, on the grounds of race, color, national origin, religion, sex, gender identity, sexual orientation, disability, age, marital status, family/ parental status, income derived from a public assistance program, or political beliefs, exclude from participation in, deny the benefits of, or subject to discrimination any person in the United States under any program or activity conducted by the USDA. mstockstill on DSK3G9T082PROD with RULES How To File a Complaint of Discrimination To file a complaint of discrimination, complete the USDA Program Discrimination Complaint Form, which may be accessed online at http:// www.ocio.usda.gov/sites/default/files/ docs/2012/Complain_combined_6_8_ 12.pdf, or write a letter signed by you or your authorized representative. Send your completed complaint form or letter to USDA by mail, fax, or email: Mail: U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue SW., Washington, DC 20250–9410. VerDate Sep<11>2014 16:45 Jun 28, 2016 Jkt 238001 Fax: (202) 690–7442. Email: program.intake@usda.gov. Persons with disabilities who require alternative means for communication (Braille, large print, audiotape, etc.), should contact USDA’s TARGET Center at (202) 720–2600 (voice and TDD). Additional Public Notification FSIS will announce this rule online through the FSIS Web page located at http://www.fsis.usda.gov/wps/portal/ fsis/topics/regulations/federal-register/ interim-and-final-rules. FSIS will also make copies of this Federal Register publication available through the FSIS Constituent Update, which is used to provide information regarding FSIS policies, procedures, regulations, Federal Register notices, FSIS public meetings, and other types of information that could affect or would be of interest to constituents and stakeholders. The Update is communicated via Listserv, a free electronic mail subscription service for industry, trade groups, consumer interest groups, health professionals, and other individuals who have asked to be included. The Update is also available on the FSIS Web page. In addition, FSIS offers an electronic mail subscription service which provides automatic and customized access to selected food safety news and information. This service is available at http://www.fsis.usda.gov/subscribe. Options range from recalls to export information to regulations, directives, and notices. Customers can add or delete subscriptions themselves, and have the option to password protect their accounts. 9 CFR Part 312 Food labeling, Meat inspection, Signs and symbols. 9 CFR Part 322 Exports, Meat inspection. 9 CFR Part 350 Meat inspection, Reporting and recordkeeping requirements. 9 CFR Part 362 Meat inspection, Poultry and poultry products, Reporting and recordkeeping requirements. 9 CFR Part 381 Meat inspection, Poultry and poultry products, Reporting and recordkeeping requirements. 9 CFR Part 590 Eggs and egg products, Exports, Food grades and standards, Food labeling, Frm 00009 Fmt 4700 9 CFR Part 592 Eggs and egg products, Exports, Food grades and standards, Food labeling, Imports, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, FSIS amends 9 CFR chapter III as follows: PART 312—OFFICIAL MARKS, DEVICES AND CERTIFICATES 1. The authority citation for part 312 continues to read as follows: ■ Authority: 21 U.S.C. 601–695; 7 CFR 2.17, 2.55. ■ 2. Revise § 312.8 to read as follows: § 312.8 Export inspection marks. The export inspection mark required in § 322.1 of this chapter must be either a mark that contains a unique identifier that links the consignment to the export certificate or an official mark with the following form:1 PART 322—EXPORTS 3. The authority citation for part 322 continues to read as follows: ■ Authority: 21 U.S.C. 601–695; 7 CFR 2.17, 2.55. List of Subjects PO 00000 Imports, Reporting and recordkeeping requirements. Sfmt 4700 ■ 4. Revise § 322.1 to read as follows: § 322.1 Marking products for export. (a) When authorized by inspection personnel, establishment personnel must mark the outside container of any inspected and passed product for export, the securely enclosed pallet within the consignment, or closed means of conveyance transporting the consignment, with a mark that contains a unique identifier that links the consignment to the export certificate or an official mark as described in § 312.8 of this chapter. Ship stores, small quantities exclusively for the personal use of the consignee and not for sale or distribution, and shipments by and for the U.S. Armed Forces, are exempt from the requirements of this section. 1 The number ‘‘1234567’’ is given as an example only. The number on the mark will correspond to the printed number on the export certificate. E:\FR\FM\29JNR1.SGM 29JNR1 ER29JN16.015</GPH> Service, USDA, 1400 Independence Ave. SW., Room 6077 South Building, Washington, DC 20250–3700; (202) 690– 6510. 42233 42234 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Rules and Regulations § 322.2 Export certification. (a) Exporters must apply for export certification of inspected and passed products shipped to any foreign country. Exporters may apply for an export certificate using a paper or electronic application. FSIS will assess exporters that submit an electronic application the charge in § 350.7(e) of this chapter. (b) FSIS will issue only one certificate for each consignment, except in the case of error in the certificate or loss of the certificate originally issued. A request for a replacement certificate, except in the case of a lost certificate, must be accompanied by the original certificate. The new certificate will carry the following statement: ‘‘Issued in replacement of lll’’, with the numbers of the certificates that have been superseded. (c) FSIS will deliver a copy of the certificate to the exporter. The exporter may furnish the copy of the certificate to the consignee for purposes of affecting the entry of product into the foreign country of destination. (d) FSIS will retain a copy of the certificate. (e) Exporters may request inspection personnel to issue certificates for export consignments of product of official establishments not under their supervision, provided the consignments are first identified as having been ‘‘U.S. inspected and passed,’’ are found to be neither adulterated nor misbranded, and are marked as required by § 322.1. mstockstill on DSK3G9T082PROD with RULES 7. In § 350.7, add paragraphs (e), (f), and (g) to read as follows: ■ Fees and charges. * * * * (e) Exporters that submit electronic export certificate applications will be charged a fee per application submitted. Jkt 238001 9. In § 362.5, add paragraphs(e), (f), and (g) to read as follows: ■ § 362.5 Fees and charges. * * * * * (e) Exporters that submit electronic export certificate applications will be charged a fee per application submitted. (f) For each calendar year, FSIS will calculate the electronic export certificate application fee, using the following formula: Labor Costs (Technical Support Cost + Export Library Maintenance Cost) + Information Technology Costs (On-going operations Cost + Maintenance Cost + eAuthentication Cost), divided by the number of export applications. (g) FSIS will publish notice of the electronic export certificate application fee annually in the Federal Register. PART 381—POULTRY PRODUCTS INSPECTION REGULATIONS 10. The authority citation for part 381 continues to read as follows: ■ § 381.104 Authority: 7 U.S.C. 1622, 1624; 7 CFR 2.17, 2.55. 16:45 Jun 28, 2016 Authority: 7 U.S.C 1622; 7 CFR 2.18(g) and (i) and 2.53. 11. Revise § 381.104 to read as follows: 6. The authority citation for part 350 continues to read as follows: VerDate Sep<11>2014 8. The authority citation for part 362 continues to read as follows: ■ ■ ■ * PART 362—VOLUNTARY POULTRY INSPECTION REGULATIONS Authority: 7 U.S.C. 138F, 450; 21 U.S.C. 451–470; 7 CFR 2.7, 2.18, 2.53. PART 350—SPECIAL SERVICES RELATING TO MEAT AND OTHER PRODUCTS § 350.7 (f) For each calendar year, FSIS will calculate the electronic export certificate application fee, using the following formula: Labor Costs (Technical Support Cost + Export Library Maintenance Cost) + Information Technology Costs (On-going operations Cost + Maintenance Cost + eAuthentication Cost), divided by the number of export applications. (g) FSIS will publish notice of the electronic export certificate application fee annually in the Federal Register. Export inspection marks. The export inspection mark required in § 381.105 must be either a mark that contains a unique identifier that links the consignment to the export certificate or an official mark with the following form: 1 1 The number ‘‘1234567’’ is given as an example only. The number on the mark will correspond to the printed number on the export certificate. PO 00000 Frm 00010 Fmt 4700 Sfmt 4725 12. Revise § 381.105 to read as follows: ■ § 381.105 Marking products for export. When authorized by inspection personnel, establishments must mark the outside container of any inspected and passed product for export, the securely enclosed pallet within the consignment, or closed means of conveyance transporting the consignment, with a mark that contains a unique identifier that links the consignment to the export certificate or an official mark as described in § 381.104. Ship stores, small quantities exclusively for the personal use of the consignee and not for sale or distribution, and shipments by and for the U.S. Armed Forces, are exempt from the requirements of this section. ■ 13. Revise § 381.106 to read as follows: § 381.106 Export certification. (a) Exporters must apply for export certification of inspected and passed products to any foreign country. Exporters may apply for an export certificate using a paper or electronic application. FSIS will assess exporters that submit an electronic application the charge in § 362.5(e) of this chapter. (b) FSIS will issue only one certificate for each consignment, except in the case of error in the certificate or loss of the certificate originally issued. A request for a replacement certificate, except in the case of a lost certificate, must be accompanied by the original certificate. The new certificate will carry the following statement: ‘‘Issued in replacement of lll’’, with the numbers of the certificates that have been superseded. (c) FSIS will deliver a copy of the certificate to the person who requested such certificate or his agent. Such persons may duplicate the certificate as required in connection with the exportation of the product. (d) FSIS will retain a copy of the certificate. (e) Exporters may request inspection personnel to issue certificates for export consignments of product of official establishments not under their supervision, provided the consignments are first identified as having been ‘‘U.S. inspected and passed,’’ are found to be E:\FR\FM\29JNR1.SGM 29JNR1 ER29JN16.016</GPH> (b) When authorized by inspection personnel, establishments must mark each tank car of inspected and passed lard or similar edible product, and each door of each railroad car or other closed means of conveyance, containing inspected and passed loose product shipped directly to a foreign country, with an export inspection mark as shown in § 312.8 of this subchapter. ■ 5. Revise § 322.2 to read as follows: Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Rules and Regulations PART 590—INSPECTION OF EGGS AND EGG PRODUCTS (EGG PRODUCTS INSPECTION ACT) 14. The authority citation for part 590 continues to read as follows: ■ Authority: 21 U.S.C. 1031–1056. ■ 15. Add § 590.407 to read as follows: § 590.407 Export certification and marking of containers with export inspection mark. mstockstill on DSK3G9T082PROD with RULES (a) Exporters must apply for export certification of inspected and passed products shipped to any foreign country. Exporters may apply for an export certificate using a paper or electronic application. FSIS will assess exporters that submit an electronic application the charge in § 592.500(d) of this chapter. (b) FSIS will issue only one certificate for each consignment, except in the case of error in the certificate or loss of the certificate originally issued. A request for a replacement certificate, except in the case of a lost certificate, must be accompanied by the original certificate. The new certificate will carry the following statement: ‘‘Issued in replacement of lll’’, with the numbers of the certificates that have been superseded. (c) FSIS will deliver a copy of the export certificate to the person who requested such certificate or his agent. Such persons may duplicate the certificate as required in connection with the exportation of the product. (d) FSIS will retain a copy of the certificate. (e)(1) When authorized by inspection personnel, establishments must mark the outside container of any inspected and passed egg products destined for export, the securely enclosed pallet within the consignment, or closed means of conveyance transporting the consignment, with a mark that contains a unique identifier that links the consignment to the export certificate or an official mark with the following form: 1 (2) Ship stores, small quantities exclusively for the personal use of the consignee and not for sale or 1 The number ‘‘1234567’’ is given as an example only. The number on the export certificate will correspond to the printed number on the export certificate. VerDate Sep<11>2014 16:45 Jun 28, 2016 Jkt 238001 distribution, and shipments by and for the U.S. Armed Forces, are exempt from the requirements of this section. (f) Exporters may request inspection personnel to issue certificates for export consignments of product of official establishments not under their supervision, provided the consignments are first identified as having been ‘‘U.S. inspected and passed,’’ are found to be neither adulterated nor misbranded, and are marked as required by paragraph (e) of this section. PART 592—VOLUNTARY INSPECTION OF EGG PRODUCTS (f) FSIS will publish notice of the electronic export certificate application fee annually in the Federal Register. Done at Washington, DC, on June 17, 2016. Alfred V. Almanza, Acting Administrator. [FR Doc. 2016–14812 Filed 6–28–16; 8:45 am] BILLING CODE 3410–DM–P DEPARTMENT OF ENERGY 10 CFR Parts 429 and 430 [Docket No. EERE–2014–BT–TP–0044] RIN 1904–AD45 16. The authority citation for part 592 continues to read as follows: ■ Authority: 7 U.S.C. 1621–1627. 17. In § 592.20, add paragraph (d) to read as follows: ■ § 592.20 Kinds of services available. * * * * * (d) Export certification. Upon application, by any person intending to export any egg product, inspectors may make certifications regarding products for human food purposes, to be exported, as meeting conditions or standards that are not imposed or are in addition to those imposed by the regulations in the part and the laws under which such regulations were issued. ■ 18. In § 592.500, revise paragraph (a) and add paragraphs (d), (e), and (f) to read as follows: § 592.500 Payment of fees and charges. (a) Fees and charges for voluntary base time rate, overtime inspection service, holiday inspection service, and electronic export applications shall be paid by the interested party making the application for such service, in accordance with the applicable provisions of this section and § 592.510 through § 592.530, both inclusive. If so required by the inspection personnel, such fees and charges shall be paid in advance. * * * * * (d) Exporters that submit electronic export certificate applications will be charged a fee per application submitted. (e) For each calendar year, FSIS will calculate the electronic export certificate application fee, using the following formula: Labor Costs (Technical Support Cost + Export Library Maintenance Cost) + Information Technology Costs (On-going operations Cost + Maintenance Cost + eAuthentication Cost), divided by the number of export applications. PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 Energy Conservation Program: Test Procedure for Battery Chargers Correction In rule document 2016–11486, beginning on page 31827 in the issue of Friday, May 20, 2016, make the following corrections: Appendix Y to Subpart B of Part 430 [Corrected] 1. On page 31844, in Appendix Y to Subpart B of Part 430, in Table 5.3, under the ‘‘Product Class’’ column head, in the ‘‘Rated Battery Energy (Ebatt) ** column, in the third row, the entry should read ‘‘<100 Wh’’. 2. On the same page, in the same table, beneath the same column head, in the same column, in the fourth row, the entry should read ‘‘<100 Wh’’. 3. On the same page, in the same table, beneath the same column head, in the same column, in the sixth row, the entry should read ‘‘100–3000 Wh’’. [FR Doc. C1–2016–11486 Filed 6–28–16; 8:45 am] BILLING CODE 1505–05–D FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Parts 308 and 327 RIN 3064–AE43 Rules of Practice and Procedure Federal Deposit Insurance Corporation. ACTION: Interim final rule and request for comment. AGENCY: The Federal Deposit Insurance Corporation (FDIC) is amending its rules of practice and procedure under to adjust the maximum amount of each civil money penalty (CMP) within its jurisdiction to account for inflation. This action is required by the Federal Civil Penalties Inflation SUMMARY: E:\FR\FM\29JNR1.SGM 29JNR1 ER29JN16.017</GPH> neither adulterated nor misbranded, and are marked as required by § 381.105. 42235

Agencies

[Federal Register Volume 81, Number 125 (Wednesday, June 29, 2016)]
[Rules and Regulations]
[Pages 42225-42235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14812]


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DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

9 CFR Parts 312, 322, 350, 362, 381, 590, and 592

[Docket No. FSIS-2009-0026]
RIN 0583-AD41


Electronic Export Application and Certification Charge; 
Flexibility in the Requirements for Export Inspection Marks, Devices, 
and Certificates; Egg Products Export Certification

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Food Safety and Inspection Service (FSIS) is amending the 
meat and poultry inspection regulations to provide for an electronic 
export application and certification system. The electronic export 
application and certification system will be a component of the 
Agency's Public Health Information System (PHIS). The PHIS Export 
Component will be available as an alternative to the paper-based export 
application and certification process. FSIS will charge an application 
fee to exporters that use the PHIS Export Component. FSIS is 
establishing a formula for calculating the fee. On an annual basis, the 
Agency will use the formula to update the fee and publish the new fee 
in the Federal Register. The updated fee will apply at the start of 
each calendar year. FSIS is also amending the meat and poultry export 
regulations to provide flexibility in the requirements for official 
export inspection marks, devices, and certificates. In addition, FSIS 
is amending the egg product export regulations to parallel the meat and 
poultry product export regulations.

DATES: Effective Date: August 29, 2016. Applicability Date: The 
regulations that provide for an electronic export application and 
certification system for meat, poultry, and egg products; an electronic 
application fee; and the use of a 7-digit export mark or unique 
identifier will be applicable on June 29, 2017. These regulations 
include 9 CFR 312.8; 381.104; 322.2(a); 381.106(a); 590.407(a); 
590.407(c) (unique identifier and 7-digit export mark provisions only); 
350.7(e) through (g) and 362.5(e) through (g); 592.500(a); and 
592.500(d) through (f).

FOR FURTHER INFORMATION CONTACT: Daniel Engeljohn, Assistant 
Administrator, Office of Policy and Program Development, U.S. 
Department of Agriculture, 1400 Independence Avenue SW., Room 2147, 
Washington, DC 20250-3700, (202) 205-0495.

SUPPLEMENTARY INFORMATION:

Executive Summary

    On January 23, 2012, FSIS proposed to amend its regulations to 
provide for the PHIS Export Component, an electronic export application 
and certification system that would be available as an alternative to 
the paper-based application and certification process (77 FR 3159). The 
Agency also proposed amendments to provide exporters with flexibility 
in the official marking of exported products and to delete certain 
prescriptive practices from the regulations, such as the obsolete 
``upon request'' poultry export certification provision (9 CFR 
381.105(a)) and requirements for ``triplicate'' and ``duplicate'' forms 
(9 CFR 322.2 and 381.105) to allow for ``copies'' of the export 
certificates. In addition, FSIS proposed to organize and make parallel, 
to the extent possible, the regulatory language for the export 
application and certification of meat and poultry products and to amend 
the egg products export regulations to add export application and 
certification requirements.
    Because the PHIS Export Component will provide exporters with new 
service options, such as the ability to electronically submit, track, 
and manage their export applications, the Agency proposed to charge 
exporters a fee for the service. FSIS proposed a formula for 
calculating the fee based on recovering the Agency's costs of 
maintaining and operating the PHIS Export Component.
    After review and consideration of all the comments submitted, FSIS 
is finalizing the proposed amendments, with modifications:
     One component of the fee formula, direct inspection cost, 
has been deleted. Other cost components of the formula, e.g., technical 
support, export library maintenance, on-going operations and 
maintenance cost, and the number of export applications, have been 
updated. The export application fee has been recalculated based on the 
updated costs

[[Page 42226]]

and number of export applications. As noted above, the fee will take 
effect beginning on the applicability date of June 29, 2017.
     The regulatory requirements for filing a copy of the 
export certificate with U.S. Customs and Border Protection (CBP) will 
be deleted from the regulatory text (9 CFR 322.2(e)). However, the 
Federal Meat Inspection Act's (FMIA) statutory requirement and FSIS's 
regulatory requirement that the product's owner (e.g., exporter) or 
shipper obtain an export certificate from FSIS before the meat product 
departs from a U.S. port (21 U.S.C. 617; 9 CFR 322.4) remain in effect.
     The regulatory text in 9 CFR 322.1(a) and 381.105(a) for 
marking the outside containers of exported products is modified to 
include stamping the pallet within the consignment, or closed means of 
conveyance transporting the consignment (e.g. truck, rail car, or ocean 
container).
     Also, to make the regulations more clear, FSIS is amending 
the export certification regulations by changing the term ``in lieu of 
certificates'' to ``replacement certificates'' (9 CFR 322.2(b), 9 CFR 
381.106(b), 590.407(b)).
    Beginning on the applicability date of June 29, 2017, FSIS will 
charge exporters that choose to utilize the PHIS Export Component a 
revised fee of $4.03 per application submitted. Automating the export 
application and certification process will provide a seamless, 
integrated, and streamlined approach to processing applications and 
certificates. It will likely reduce the exporter and inspection 
personnel workload and paperwork burden by reducing the physical 
handling and processing of applications and certificates. Adding export 
application and certification requirements to the egg products 
regulations will parallel the meat and poultry regulations.
    Total direct cost to the exporters is estimated at $2.3 million, 
assuming that the number of applications will remain at about 576,000 
per year, based on recent application data. The indirect costs, which 
are indeterminate, will be the Internet service and the acquisition or 
upgrading of a current computer system to one that would be compatible 
with the PHIS. Under the final rule, exporters may continue to submit 
paper-based export applications to the Agency so as to not incur the 
additional fee required by this rule.

Background

    On January 23, 2012, FSIS published the proposed rule, ``Electronic 
Export Application and Certification Charge; Flexibility in the 
Requirement for Export Inspection Marks, Devices, and Certificates; Egg 
Products Export Certification'' (77 FR 3159). In it, the Agency 
proposed to amend the meat, poultry, and egg products regulations to 
provide for the PHIS Export Component, an electronic alternative to the 
paper-based export application and certification process.
    The Federal Meat Inspection Act (FMIA) (21 U.S.C. 601-695) and the 
Poultry Products Inspection Act (PPIA) (21 U.S.C. 451-470) provide for 
the export and certification of meat and poultry products. The FSIS 
meat and poultry export regulations set forth the requirements for the 
certification and export of federally inspected and passed meat and 
poultry products to foreign countries (9 CFR 312.8, 322.1 through 322.5 
and 381.104 through 381.111).
    The Egg Products Inspection Act (EPIA) (21 U.S.C. 1031-1056) does 
not set forth specific provisions for the export of egg products. 
FSIS's egg products inspection regulations provide that, upon request, 
an inspector may issue an egg product export certificate of 
wholesomeness. Exporters can present the certificate to foreign 
countries as certification that egg products were inspected and passed 
and are wholesome and fit for human consumption (9 CFR 590.402).
    The Agricultural Marketing Act (AMA) provides the Secretary of 
Agriculture with the authority to collect fees ``as will be reasonable 
and as nearly as may be to cover the cost of the service rendered, to 
the end that agricultural products may be marketed to the best 
advantage, that trading may be facilitated, and that consumers may be 
able to obtain the quality product which they desire'' (7 U.S.C 
1622(h)). Under the authority of the AMA, the meat and poultry 
regulations provide that FSIS may make certifications regarding 
exported meat and poultry products meeting conditions or standards that 
are not imposed, or that are in addition to those imposed, by the meat 
and poultry regulations, the FMIA, or the PPIA (9 CFR 350.3(b) and 
362.2(b)). FSIS collects fees and charges from establishments and 
facilities that request certification service in addition to the basic 
export certification of wholesomeness (9 CFR 350.7 and 362.5).

The Public Health Information System (PHIS)

    FSIS is developing and, on the applicability date of June 29, 2017, 
will implement the PHIS Export Component that will integrate and 
automate the Agency's paper-based export application and certification 
process into one comprehensive and automated data-driven inspection 
system. Through the PHIS Export Component, exporters will be able to 
access their online account to electronically submit, track, and manage 
applications for export certificates. The PHIS Export Component will 
allow establishment management to apply for approval of establishments 
for export when required by the foreign country; create, revise, and 
submit Product Lists; cancel pending applications and certificates; 
request replacement (formerly ``in lieu of'') certificates; and return 
of exported products.
    The PHIS Export Component will include electronic data elements for 
the following export-related forms: the Application for Export 
Certificate (which includes the option for an ``original'' or 
``replacement'' application); the Product List, which will be used by 
PHIS to capture the description of a product and other product-specific 
information; and the Application for the Return of Exported Products to 
the United States (used to notify FSIS when product is exported and 
then returned to the U.S. and to arrange for the product's entry and 
reinspection by FSIS); and the Establishment Application for Export 
(used by FSIS to ensure specific establishment requirements defined by 
certain countries are met); once approved, the eligible establishment 
will be listed by country on the FSIS Web site (http://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/exporting-products/eligible-us-establishments-by-country or http://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/exporting-products/export-library-requirements-by-country) and included 
in PHIS when the Export Component is implemented.
    After the applicability date of June 29, 2017, exporters can 
continue to submit the paper applications for export certification, but 
those who choose to do so will need to email, fax, or mail the 
completed application, and any additional information required by the 
foreign country, to FSIS for entry into PHIS at:
    Email: FSIS.billing@fsis.usda.gov.
    Mail: U.S. Department of Agriculture, Food Safety and Inspection 
Service, FMD, Financial Services Center, P.O. Box 9205, Des Moines, IA 
50306-9948.
    Before the rule's applicability date of June 29, 2017, FSIS will 
also announce, in the Constituent Update, a dedicated fax number for 
paper application submissions.
    FSIS intends to enter data from complete paper export certificate 
applications into PHIS typically within

[[Page 42227]]

3-5 business days after receipt of an application by FSIS. However, the 
entry may take longer in some cases. By contrast, export certificate 
applications submitted electronically will be instantly and directly 
submitted into PHIS for review. Therefore, processing the paper-based 
export certificate applications will be slower than the applications 
that are submitted electronically. FSIS will also enter Product List 
data for applicants that choose to use paper.
    After FSIS enters the data from the paper export certificate 
application into PHIS, the application data will follow the same 
approval process in PHIS as application data submitted by an applicant 
through PHIS with Level 2 eAuthentication. After FSIS approves an 
Application for Export Certificate, an FSIS inspector will issue a 
signed export certificate to the exporter. FSIS will continue to 
process and charge for after-hours (overtime or holiday) applications 
as a reimbursable service (9 CFR 307.5 and 307.6; 381.38 and 381.39; 
590.126 through 590.130), as well as requests for certification that 
are in addition to the basic export certification (9 CFR 350.3(b), 
350.7, 362.2(b), and 362.5).
    The PHIS Export Component will initially have the ability to 
produce paper certificates that can be signed by FSIS with either an 
ink signature, as is done currently, or with a secure signature image 
derived from an official FSIS Identification card. The type of 
signature will be determined by the foreign government's requirements. 
FSIS will print paper certificates, generated by PHIS and issue the 
signed paper certificates to the exporter.
    Foreign governments will also have the capability to view all 
export certificates for product intended for their country issued by 
FSIS in PHIS, as a digital image (portable document format, (PDF)), 
through an FSIS-controlled log-in feature (Foreign Country Log-in). 
Foreign governments may access the Foreign Country Log-in using Level 2 
eAuthentication. Prior to implementation of the PHIS Export Component, 
FSIS will notify foreign governments when it is time to register for 
Level 2 eAuthentication. To learn more about Level 2 eAuthentication 
and how to register for an account, please visit https://www.eauth.usda.gov/MainPages/eauthWhatIsAccount.aspx.
    In the future, FSIS also intends to support electronic export 
certification in PHIS. Electronic export certification is the 
government-to-government transmission of certification data and is the 
electronic equivalent of a paper certificate. When developed and 
implemented, electronic export certification will allow FSIS to 
transfer certification data directly to the foreign government's 
competent authority. Electronic certification will allow the foreign 
government's competent authority to view and authenticate the export 
certification data. FSIS will notify the public--including industry, 
importing countries, and other interested stakeholders--regarding the 
future development and implementation of electronic export 
certification, through a U.S. Federal Register Notice, World Trade 
Organization (WTO) notification, FSIS Constituent Update, or other 
appropriate means.
    The PHIS Export Component will maintain a record of each export 
certificate issued, whether the certificate is paper-based, digital 
image, or in the future, electronic. FSIS considers any data and the 
electronic records (applications and certifications) submitted and 
processed through the PHIS to be equivalent to paper records. Export 
applications and certifications transmitted electronically are 
official.
    To access and use the PHIS Export Component, exporters will need to 
register for a USDA eAuthentication account with Level 2 access. An 
eAuthentication account enables individuals within and outside of the 
USDA to obtain user-identification accounts to access a wide range of 
USDA applications through the Internet. The Level 2 access will provide 
to users the ability to conduct official electronic business 
transactions. To register for a Level 2 eAuthentication account, the 
user will need to have access to the Internet and a valid email 
address.
    The Agency plans to provide exporters with more specific, detailed 
information on how to access PHIS to submit and manage export 
certificate applications, including guidance to exporters for accessing 
and navigating the PHIS Export Component. Any information concerning 
the implementation of the PHIS Export Component will be posted on the 
Agency's Web site at http://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/exporting-products.

PHIS Export Component Implementation

    To provide for an orderly transition to the PHIS Export Component, 
FSIS considered several implementation options, including a phased-in 
implementation approach, which would benefit FSIS and industry by 
allowing time and flexibility to identify and address any PHIS export 
issues that may arise. The Agency also considered initially 
implementing the Export Component with countries that import the 
highest volume of FSIS-regulated product, or with neighboring countries 
such as Canada and Mexico. In addition, the Agency considered whether 
or not to accommodate the transfer of multiple export applications 
batch files sent from exporters to the PHIS Export Component.
    On April 2, 2015, to solicit public comment and input on 
implementation issues, the Agency published ``Issues on Implementation 
of Export Module,'' on regulations.gov (http://www.regulations.gov/#!searchResults;rpp=25;po=0;s=FSIS-2015-0018-0004;fp=true;ns=true). The 
document outlined the Agency's thinking on implementation options and 
posed specific implementation questions for industry and consumer 
input. The comment period closed on May 5, 2015.
    Also on April 2, 2015, FSIS held a conference call with members of 
consumer advocacy groups and industry representatives to request 
feedback on the implementation of the PHIS Export Component. During the 
call, the Agency announced that it had published PHIS Export Component 
implementation issues and questions on regulations.gov for public 
comment. The Agency published the transcript of the conference call on 
its Web site at: http://www.fsis.usda.gov/wps/wcm/connect/abc21785-3a1a-43bc-b789-81187a0e67bb/PHIS-export-conference.pdf?MOD=AJPERES.
    In addition, on April 3, 2015, FSIS announced, in a Constituent 
Update, a request for feedback on the implementation of the PHIS Export 
Component (http://www.fsis.usda.gov/wps/wcm/connect/805c2534-dfec-414b-9342-9a8effe2c5b8/ConstiUpdate040315.pdf?MOD=AJPERES&CONVERT_TO=url&CACHEID=805c2534-dfec-414b-9342-9a8effe2c5b8).
    In response to the implementation issues and questions, commenters 
generally supported a phased-in approach, starting with one country, 
and expanding to additional countries only after potential initial 
implementation issues have been resolved. Commenters did not recommend 
specific countries, although some suggested beginning with low-volume 
countries that maintain relatively simple export certification 
requirements. Commenters also supported including batching capabilities 
which will allow applicants to bundle multiple applications into a 
single file, and noted specifically that, as the PHIS Export Component 
is implemented, companies will have to

[[Page 42228]]

operate parallel systems for both batch certificates and individual 
certificates. In addition, industry association members affirmed that 
they could accommodate both a limited initial implementation of the 
PHIS Export Component and traditional certification processes for 
countries not yet included in PHIS, depending on acceptance by foreign 
governments.
    Based on the comments received, FSIS is developing a comprehensive 
phased-in implementation plan of the PHIS Export Component. Initially, 
beginning on the applicability date of June 29, 2017, the Agency will 
implement the PHIS Export Component with one foreign country or limited 
number of foreign countries, and then gradually expand implementation 
to additional countries. In addition, the PHIS Export Component will 
include batch file capability, which will be aligned with the rollout 
of countries in the phased-in implementation. To maintain system 
functionality, FSIS reserves the right to place limits on batching as 
needed or required by PHIS, and will process applications in the order 
that they are received. In preparing for phased-in implementation, FSIS 
is evaluating criteria, such as the foreign country's product volume 
and product diversity, geographic proximity to the United States, and 
complexity of certification requirements. FSIS will communicate with 
foreign countries and industry regarding preparations for the phased-in 
implementation plan, and will seek additional public input as needed.
    The rule's electronic application and fee provisions will not be 
applicable until June 29, 2017. FSIS will provide additional 
information through Federal Register notices on implementation prior to 
the applicability date, including specific information on which 
countries will initially receive export certificates through the new 
Export Component.

Proposed and Final Rule Amendments

Export Applications and Certificates

    As discussed in the proposed rule (77 FR 3160), the meat and 
poultry products inspection regulations provide a paper-based export 
application and certification process (9 CFR 312.8, 322.2, 381.105, and 
381.106). The meat regulations provide that, upon application of the 
exporter, FSIS inspectors are authorized to issue export certificates 
(9 CFR 322.2(a)). The poultry products regulations provide that, upon 
the exporter's request or application, FSIS inspectors are authorized 
to issue export certificates (9 CFR 381.105(a)). The Agency proposed to 
amend the regulations to provide that applications for export 
certification may be either paper-based or electronic and to delete the 
``upon request'' certificate provision in the poultry products 
regulations, because the ``upon request'' provision is obsolete and 
does not reflect current export certification practices.
    FSIS also proposed to delete the export certificate form 
requirements in 9 CFR 312.8(b) and 381.106, because these regulations 
contain specific certificate requirements and instructions for Agency 
inspection personnel, e.g., signature by a program employee and bearing 
a letterhead and the official seal of the U.S. Department of 
Agriculture. The Agency provides instructions to inspection program 
personnel for export application approval and issuance of export 
certificate instructions in FSIS Directive 9000.1, Revision 1 http://www.fsis.usda.gov/wps/portal/fsis/topics/regulations/directives/9000-series.
    In addition, FSIS proposed to delete the references in 9 CFR 322.2 
and 381.105 to the issuance of ``triplicate'' and ``duplicate'' 
certificates to allow for ``copies'' of the export certificate to be 
distributed to the required parties and to accompany the product. The 
Agency also proposed to delete the provisions in 9 CFR 322.2(e) for 
filing a copy of the export certificate with the U.S. Customs and 
Border Protection (CBP) within four (4) business days of the clearance 
of the vessel at the time of filing the complete manifest.
    FSIS also proposed to amend the meat and poultry export regulations 
to organize and make parallel, to the extent possible, the regulatory 
language for meat and poultry products. This rule finalizes all of the 
proposed amendments.

Export Inspection Marks and Devices

    As discussed in the proposed rule (77 FR 3161), after the export 
application is approved, inspection program personnel provide the 
export stamp and authorize the establishment to mark products destined 
for export. As required in 9 CFR 322.1(a) and 381.105(a), each shipping 
container is marked with the official export stamp bearing the serial 
number on the export certificate (of note, beginning on the 
applicability date of June 29, 2017, FSIS is changing the number of 
digits in the serial number that appears on both the export stamp and 
the corresponding export certificate from six to seven). Both 9 CFR 
312.8(a) and 381.104 provide for an official device to apply the 
official export stamp.
    FSIS proposed to amend 9 CFR 312.8(a) and 381.104 to provide an 
alternative method of identifying and marking containers of product 
destined for export. The proposed flexibility would permit exporters to 
mark product containers with a unique identifier that links the 
exported product to the export certificate. The Agency proposed the 
flexibility because of the technological advancements that have been 
made since the export marking and devices regulations were initially 
promulgated.
    This rule finalizes the proposed amendments, but will not make the 
unique identifier provisions applicable until June 29, 2017. In 
response to a comment, the Agency is also providing greater flexibility 
by permitting stamping of the pallet within the consignment, or closed 
means of conveyance transporting the consignment (e.g. truck, rail car, 
or ocean container), provided that the stamp or unique identifier links 
the consignment to the corresponding export certificate. FSIS intends 
``consignment'' to mean the product represented on the export 
certificate (9 CFR 322.2(c)), 9 CFR 381.105(c), 9 CFR 590.407(b)), and 
that the stamped pallet will be securely enclosed (e.g. shrink-wrapped 
or other effective means). The pallet stamp should be a single mark on 
the pallet or pallets included within the consignment. Pallet stamping 
provisions will be effective on August 29, 2016. Offering these options 
for stamping is an outgrowth of FSIS's proposal to give more 
flexibility in the export stamp process. While FSIS is offering this 
flexibility, exporters will still have to meet any stamping 
requirements of the importing foreign country.

Egg Products Export Regulations

    As discussed, the EPIA does not set forth specific provisions for 
the export of egg products, and the FSIS egg products inspection 
regulations do not include requirements for exported egg products. The 
egg products inspection regulations provide that, upon request, an 
inspector may issue an egg product inspection and grading certificate. 
The exporter can present the certificate to foreign countries as 
certification that egg products were inspected and passed and are 
wholesome and fit for human consumption (9 CFR 590.402).
    As discussed in the proposed rule (77 FR 3161), because almost all 
foreign countries require export certification for imported egg 
products, FSIS proposed to amend the egg products export regulations to 
add export application and certification requirements in 9 CFR 590.407. 
The proposed section paralleled, to the extent possible, the export 
requirements in the meat and poultry regulations that provide for the

[[Page 42229]]

application, certification, and marking of product destined for export. 
FSIS also proposed to add 9 CFR 592.20(d), which parallels 9 CFR 
350.3(b) and 362.2(b) and provides that export certifications that 
products meet conditions or standards that are not imposed, or that are 
in addition to those imposed, by the egg products regulations will be 
subject to a charge as a reimbursable service. This rule finalizes the 
proposed amendments.

Charge for Electronic Export Application and Certification Process

    As discussed above and in the proposed rule (77 FR 3161), under the 
authority of the AMA, the meat and poultry inspection regulations 
provide that when exporters request certification that is in addition 
to the basic export certification of wholesomeness required by 
regulation, FSIS charges and collects fees from establishments and 
facilities that request this service (9 CFR 350.3(b), 350.7, 362.2(b), 
and 362.5). Exporters may also request additional certifications to 
meet requirements imposed by the importing foreign countries.
    The PHIS's Export Component will provide new service options to 
exporters enabling them to electronically submit, track, and manage 
their export applications. Therefore, to cover the costs of providing 
the electronic application and certification service, the Agency 
proposed to establish a fee to exporters that utilize the PHIS Export 
Component. The fee is for the application for the basic export 
certificate. Any additional certifications that are imposed by the 
importing foreign country will be charged as a certification service, 
as provided in 9 CFR 350.3(b), 362.2(b), and 592.20(d)). These 
additional export certifications will be charged at the appropriate 
basetime, overtime, or holiday rate, depending on when the 
certification service is provided. The basic export certification, if 
provided outside of an inspector's normal shift, is also charged at the 
appropriate rate (overtime or holiday).
    The Agency proposed the following formula for assessing its annual 
cost: The labor costs (i.e., direct inspection labor cost for 
inspection personnel + technical support provided to users of the 
Export Component + export library maintenance) + the Information and 
Technology (IT) costs (i.e., on-going operations + maintenance of the 
system costs + eAuthentication cost) divided by the number of annual 
export applications:
[GRAPHIC] [TIFF OMITTED] TR29JN16.012

    The Agency also provided the following calculation and export 
application fee based on the 2012 basetime rate, the best estimates for 
on-going operations and maintenance, and an estimated number of export 
applications it would receive:
[GRAPHIC] [TIFF OMITTED] TR29JN16.013

    In response to comments that the export application formula and fee 
should not include direct inspection labor costs for inspection 
personnel, FSIS deleted this cost from the export application formula 
and fee. In addition, the Agency has updated the costs and the 
estimated number of export applications included in the formula, and in 
response to comments provided more explanation of the costs:
    The 2015 PHIS Export Application Fee is based on the following 
costs, rates, and best available data:
     Technical Support Costs.
    The cost of providing technical support, which includes service 
desk support, is $125,000.\1\ Service Desk support consists of 
activities like resolving user problems with the application services, 
identifying web browser compatibility issues, and resolving access 
issues to authorized areas of the system.
---------------------------------------------------------------------------

    \1\ Based on fixed price contract for contractor Service Desk 
support.
---------------------------------------------------------------------------

     Export Library Maintenance.
    The cost for funding two full-time employees to provide export 
library functions is $302,098.\2\ Export library maintenance supports 
the PHIS Export Component and includes the writing, testing, and 
maintenance of complex business rules for evaluating the export 
application that is submitted into the PHIS export system. The business 
rules allow the system to determine product eligibility before the 
system accepts the application and transmits it to inspection program 
personnel. The business rules also facilitate the type of export 
certification required by the foreign government that will be issued 
when the application is accepted. This work supports the PHIS Export 
Component and is not part of current export library functions. In 
addition, there will be continuous updates to the system.
---------------------------------------------------------------------------

    \2\ Actual costs of 2016 GS-schedule salaries and benefits for 
two Export Library FTEs.
---------------------------------------------------------------------------

     On-going Operations and Maintenance Costs.
    The cost of providing on-going operations and maintenance, 
including improvements and necessary repairs to keep the system 
responsive to users' needs, is $1,894,156.\3\ These costs cover 
activities such as modifying the application based on changes in 
requirements or user needs, adding functionality based on foreign 
regulatory changes, upkeep of the system to ensure a secure operating 
environment that protects the data, and costs to operate the system 
components. This cost may increase in future years based on GSA 
schedule increases in labor rates and other factors.
---------------------------------------------------------------------------

    \3\ Operations and Maintenance Costs = Application maintenance 
costs ($1,451,210/yr) + Non-development-related Export O&M costs 
($442,946/yr).
---------------------------------------------------------------------------

     eAuthentication Costs.

[[Page 42230]]

    The cost of providing eAuthentication is currently zero. 
eAuthentication is a single sign-on application that allows users to 
securely access multiple USDA applications, including the PHIS Export 
Component. To access the PHIS Export Component users need to register 
for a USDA eAuthentication account. To learn more about eAuthentication 
and how to register for an account, visit https://www.eauth.usda.gov. 
FSIS may be charged for Level 2 Customer accounts separately in the 
future, and these costs may increase in future years. As an example, 
the annual future cost could be $56.88 per Level 2 account and would be 
factored on the number of export business customers annually.
     The estimated number of yearly export applications, 
determined using data obtained from FSIS's Office of Field Operations, 
is 576,192.\4\
---------------------------------------------------------------------------

    \4\ FSIS internal survey of Ten District Offices on June 10, 
2013.
---------------------------------------------------------------------------

    The final export application fee formula and fee are below:
    [GRAPHIC] [TIFF OMITTED] TR29JN16.014
    
    The fee will be calculated on an annual basis, and the updated fees 
will apply at the start of each calendar year. FSIS will publish a 
Federal Register notice announcing the fee approximately 30 days prior 
to the start of each new calendar year.

Notification of Changes to Replacement Certificate Terminology and 
Practice

    FSIS is amending the export certification regulations by changing 
the term ``in lieu of certificates'' to ``replacement certificates'' (9 
CFR 322.2(b), 9 CFR 381.106(b), 9 CFR 590.407(b)). This change is 
intended to make FSIS regulations more clear. This change will not 
cause problems for the industry or international community because the 
term ``replacement certificates'' is generally well understood.

Comments on and Responses to the Proposed Rule

    FSIS received 8 comments from domestic trade associations and 
domestic exporting establishments.
    Comment: Several commenters stated the Federal Meat Inspection Act 
(FMIA) and Poultry Products Inspection Act (PPIA) (21 U.S.C. 695 and 
468) provide that the cost of inspection rendered, except the cost of 
overtime and holiday work, shall be borne by the United States, and 
therefore, the export application formula and fee should not include 
direct inspection labor costs for inspection personnel.
    Response: FSIS agrees that the direct inspection labor costs 
included in the proposed export application formula should be removed 
from the export application formula. However, as discussed in the 
proposed rule (77 FR 3161), under the authority of the Agricultural 
Marketing Act (AMA), the meat and poultry inspection regulations 
provide that when exporters request certification that is in addition 
to the basic export certification (e.g. as required by a foreign 
country and documented in the FSIS Export Library), FSIS charges and 
collects fees from establishments and facilities that request this 
service (9 CFR 350.3(b), 350.7, 362.2(b), and 362.5). Because the PHIS 
Export Component provides new service options to exporters for 
electronic application and certification, the formula will continue to 
include the non-direct inspection based costs of the system for FSIS 
personnel (or contracted support as necessary) to operate and maintain 
the PHIS Export Component, including technical support for users, 
export library maintenance, and information technology costs.
    In this final rule, in addition to deleting the direct inspection 
costs from the export application formula, the Agency also updated the 
costs and the estimated number of export applications included in the 
formula. The final formulas and fees are discussed above.
    Comment: Comments from trade organizations stated that FSIS needs 
to work closely with exporters to ensure that the system is compatible 
with industry needs, and that it requires minimal manual input. One 
industry comment stated that the system must have the ability to accept 
some type of load files from companies that intend to use the system, 
and that it must have the ability to interface through Electronic Data 
Interchange. These commenters also recommended that FSIS communicate 
with U.S. trading partners and exporters to ensure that the Export 
Component would be acceptable.
    Response: As discussed above, in April 2015, FSIS met with and 
solicited comments from stakeholders on the system's ability to accept 
batch files. In June 2015, FSIS met with stakeholders to provide an 
update on the progress of PHIS Export Component development and will 
continue to work with exporters to ensure that industry is aware of the 
system's capabilities. The Agency intends to provide the capability for 
batch file processing of applications. FSIS will involve industry in 
its user acceptance testing for the Export Component.
    FSIS notified the World Trade Organization (WTO) of the proposed 
rule on January 23, 2012, consistent with our obligations under the WTO 
Technical Barriers to Trade Agreement. This notification gave all WTO 
Members the chance to review and comment on the proposal at a point 
when meaningful changes could still be made. In addition, FSIS is 
planning a formal outreach strategy to ensure that foreign

[[Page 42231]]

governments and U.S. exporters have every opportunity to understand the 
Export Component.
    Comment: One commenter asked whether the paper-based export process 
would continue to be available when the PHIS Export Component is 
implemented, and whether PHIS will be used to print export 
certificates.
    Response: Export applicants can submit a paper version of the 
application for export process rather than use the PHIS Export 
Component. If applicants choose to submit the paper application, FSIS 
will enter the data into the PHIS Export Component for processing and 
provide the paper export certificate to the applicant when it has been 
approved. Exporters who choose to use paper-based applications will 
need to email, fax, or mail the completed applications, and any 
additional information required by the foreign country, to FSIS for 
entry into PHIS at:
    Email: FSIS.billing@fsis.usda.gov
    Mail: U.S. Department of Agriculture, Food Safety and Inspection 
Service, FMD, Financial Services Center, P.O. Box 9205, Des Moines, IA 
50306-9948.
    FSIS will provide a dedicated fax number as well, and will announce 
availability of this number in a Constituent Update before the rule's 
effective date.
    Export applicants with an eAuthentication account can submit and 
process their application electronically (for a fee), and if the 
foreign country requires a paper certificate, FSIS will print an 
approved certificate and provide it to the applicant.
    Comment: One commenter requested clarification on how FSIS will 
handle after hours (second shift exports), weekend, and holiday export 
certification applications.
    Response: FSIS inspectors who are on-duty during those times will 
process export applications received through PHIS in a similar manner 
to the current process. The inspector will receive the export 
application in PHIS, review the application, conduct a re-inspection of 
the product according to current procedures, approve the application, 
and issue the export certificate. For exporters using paper 
applications, FSIS will continue to process and charge for after-hours 
(overtime or holiday) applications as a reimbursable service (9 CFR 
307.5-6; 381.38-39; 590.126-130).
    Comment: Comments from trade organizations stated that FSIS should 
not delete the regulatory language in 9 CFR 322.2(e) for filing a copy 
of the export certificate with CBP within four (4) business days of the 
clearance of the vessel at the time of filing the complete manifest. 
These commenters stated that these regulations are necessary so that 
establishments and exporters know that they are required to send a copy 
of the export certificate to CBP.
    Response: FSIS proposed to delete the provisions in 9 CFR 322.2(e) 
initially because the filing of the export manifest with CBP within 4 
business days is required under CBP regulations (19 CFR 4.75(b)). Upon 
further reflection, the FMIA requires the product's owner (e.g., the 
exporter) or shipper to obtain an export certificate from FSIS before 
the product departs from a U.S. port (21 U.S.C. 617). Vessel clearance 
is under CBP's jurisdiction, and because FSIS provides the export 
certificate to the exporter prior to clearance with CBP, the intent of 
21 U.S.C. 617 is satisfied.
    In terms of accounting for export certificates, the PHIS Export 
Component will allow FSIS to electronically inventory and track export 
certificate information, thus eliminating the cumbersome transfer of 
export certificate copies or certificate data across multiple steps in 
the supply chain to CBP. Furthermore, no direct transfer from FSIS to 
CBP is needed, because the controls in place between the United States 
and the importing countries are sufficient to eliminate the burden of 
transferring data (or copies of the certificate) between Federal 
agencies. Therefore, in this final rule, FSIS is deleting 9 CFR 
322.2(e). While this change removes unnecessary export requirements 
internal to the United States, exporters are responsible for obtaining 
the appropriate export certification before departure.
    Comment: An industry comment stated that certain countries require 
an original signature on export certificates and questioned how 
original signatures would be handled in the PHIS Export Component.
    Response: For countries that require an original signature on the 
certificate, PHIS will have the capability of printing a paper 
certificate that will be signed with an ink signature by an FSIS 
official.
    Comment: A trade organization stated that the Agency needs to 
provide greater flexibility in export stamping. According to the 
commenter, requiring facilities to place export stamps on every single 
case of product is costly and has little practical value. The commenter 
asked that the Agency provide an option for establishments to use FSIS-
issued export stamps on whole pallets instead of stamping every 
container on a pallet. One comment also requested that FSIS define the 
term ``unique identifier.''
    Response: The Agency proposed (9 CFR 312.8(a) and 381.104) that 
exporters could use a unique identifier, linking the exported product 
to the export certificate as an alternative to using the official 
export stamp. Under the final rule, in order to provide greater 
flexibility and alternative methods of identifying and stamping 
product, FSIS will permit stamping of the pallet within the consignment 
or closed means of conveyance transporting the consignment (e.g. truck, 
rail car, or ocean container), provided that the stamp or unique 
identifier links the consignment to the corresponding export 
certificate. FSIS intends ``consignment'' to mean the product 
represented on the export certificate (9 CFR 322.2(c)), 9 CFR 
381.105(c), 9 CFR 590.407(b)), and that the stamped pallet will be 
securely enclosed (e.g. shrink-wrapped or other effective means). 
Offering these options for stamping is an outgrowth of FSIS's proposal 
to give more flexibility in the export stamp process. It is important 
to note that exporters must still meet any stamping requirements of the 
importing foreign country, regardless of the flexibility offered by 
FSIS in export stamping.
    To provide greater flexibility and accommodation of technological 
change, FSIS will not narrowly define the term ``unique identifier'' 
within its regulations, beyond the requirement that it must link the 
exported product to the export certificate issued by inspection 
personnel. In general, FSIS envisions the alternative mark as an 
alphanumeric sequence that uniquely identifies the shipment and links 
it to the export certificate. In the future, other methods and 
technologies could be used to produce unique identifiers, as verified 
by FSIS and determined acceptable by the importing country. Exporters' 
use of unique identifiers as an alternative mark will be dependent on 
acceptance by the importing country, as documented in the FSIS Export 
Library. As noted above, the unique identifier provisions will not be 
applicable until June 29, 2017. FSIS will work closely with importing 
countries to determine their needs related to identifying the product 
and will explain the alternative of using a unique identifier in place 
of the export stamp.

Executive Orders 12866 and 13563, and the Regulatory Flexibility Act

    Executive Orders (E.O.) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and

[[Page 42232]]

equity). Executive Order 13563 emphasizes the importance of quantifying 
both costs and benefits, of reducing costs, of harmonizing rules, and 
of promoting flexibility. This final rule has been designated a ``non-
significant'' regulatory action under section 3(f) of E.O. 12866. 
Accordingly, the rule has not been reviewed by the Office of Management 
and Budget (OMB).
    FSIS has adopted the preliminary regulatory impact analysis with an 
update to the paperwork burden estimates for egg plants.

Cost of the Final Rule

    Based on the formula established in this rule, for exporters that 
choose to utilize this new tool, the direct cost would be $4.03 per 
export application. The application fee will be determined annually 
based on the formula. The total cost to an exporter would depend on the 
number of electronic applications processed. An exporter that processes 
only a few applications per year would not likely experience a 
significant economic impact.
    Assuming that the number of applications will remain about 576,000, 
based on recent application data,\5\ and exporters apply for all of 
these certificates through this new portal, the total direct cost to 
the exporting industry, when the PHIS Export Component is fully 
implemented with all countries, will be approximately $2.3 million per 
year. The indirect costs, which are indeterminate, will be the Internet 
service and the acquisition or upgrading of a current computer system 
to one that would be compatible with the PHIS. Under the final rule, 
exporters may continue to submit paper-based export applications with 
the Agency as to not incur the additional fee required by this rule.
---------------------------------------------------------------------------

    \5\ * * *.
---------------------------------------------------------------------------

    Egg plants will incur additional costs as a result of this final 
rule. The total annual paperwork burden to egg exporters to fill out 
the paper-based export application is estimated to be 3,333 \6\ hours a 
year or $73,000 per year.\7\ The average exporter burden would be 16.7 
hours or approximately $360 per exporter. There is no annual paperwork 
burden to meat and poultry exporters since they are currently filling 
out the export application.
---------------------------------------------------------------------------

    \6\ Hours are derived from estimates of 200 for the number of 
exporters, 100 for the number of responses per exporter, and 10 
minutes to complete and submit an application. (200 * 100 * 10/60)
    \7\ FSIS used the Occupational Code 43-5071 Shipping, Receiving, 
and Traffic Clerks mean hourly wage (May 2014) of $15.27. (http://www.bls.gov/oes/current/oes435071.htm) The estimated benefits 
percent share of total compensation for private industry 30.1%, with 
the remaining 69.9% attributed to wages and salaries. Therefore, the 
factor needed to multiply to wage rate to determine total 
compensation rate is: (30.1%/69.9%) + 1 = 1.43. BLS Report available 
at: http://www.bls.gov/news.release/ecec.nr0.htm. The total wage and 
benefit rate is $15.27 * 1.43.
---------------------------------------------------------------------------

Expected Benefits of the Final Rule

    The final rule will likely reduce the exporter and inspection 
personnel workload and paperwork burden by reducing the physical 
handling and processing of applications and certificates. The reduction 
in workload and paperwork burden is based on the greater efficiency of 
processing applications electronically and the number of applications 
filed electronically. In the future, the PHIS Export Component will 
facilitate the electronic government-to-government exchange of export 
applications and certifications, which will assist in the resolution of 
allegations of fraudulent transactions such as false alterations and 
reproductions.
    An indirect benefit of automating the export application and 
certification system is that there will be an automatic, electronic 
recordkeeping of the number and types of exporters, the types of 
products exported to various countries, and the number of applications 
and certificates issued through PHIS.
    Further, the electronic export system will provide a streamlined 
approach to processing applications and certificates. As a result, 
there will be additional unquantifiable benefits because PHIS automates 
the verification of eligibility and accuracy of certifications needed 
and will speed up the process for these establishments. Also, any 
potential documentation problems are likely to be resolved 
electronically before the product arrives at the port, and as a result, 
the products will likely move through ports faster than they do 
currently. Thus, storage costs to exporters will be reduced, and the 
product will reach its destination more quickly. Even exporters that 
submit a paper-based application will benefit from the PHIS Export 
Component. FSIS will enter the application into the PHIS, and the FSIS 
verifications activities regarding eligibility and accuracy of 
certifications will be automated.

FSIS Budgetary Effects

    If fully adopted by the industry and our trading partners when the 
PHIS Export Component is fully implemented, FSIS will recover the costs 
of providing electronic application and certification service.

Regulatory Flexibility Analysis

    The FSIS Administrator certifies that, for the purposes of the 
Regulatory Flexibility Act (5 U.S.C. 601-602), the final rule will not 
have a significant impact on a substantial number of small entities in 
the United States. There are 6,074 meat, poultry, and egg products 
establishments \8\ that could possibly be affected by this final rule 
since all are eligible to export. Of this number, there are about, 391 
large establishments, 2,505 small federally inspected establishments 
(with more than 10 but less than 500 employees) and 3,178 very small 
establishments (with fewer than 10 employees) based on HACCP 
Classification.\9\ Therefore, a total of 5,683 small and very small 
establishments could be possibly affected by this rule.
---------------------------------------------------------------------------

    \8\ Establishment numbers from FSIS's Public Health Information 
System, October 2014.
    \9\ Ibid.
---------------------------------------------------------------------------

    For the meat, poultry, and egg products industries, small and very 
small exporters, like large exporters, would incur the $4.03 fee only 
if they file their export application electronically. If they choose to 
submit the paper application, they will bear no additional cost 
compared to now. If exporters submit their applications electronically, 
the average annual cost from this rule would be $382.00 per exporter 
(576,192 export applications per year / 6,074 meat, poultry, and egg 
products establishments * $4.03 per application).
    For the approximately 200 egg product exporters, FSIS expects the 
number of applications submitted to be 20,000 (200 exporters * 100 
submissions \10\) for an estimated total cost of $81,000. The cost per 
exporter would be $403 (20,000 applications * $4.03 / 200).
---------------------------------------------------------------------------

    \10\ Estimate is from the paperwork reduction analysis.
---------------------------------------------------------------------------

    If small establishments require fewer applications, then the cost 
per small establishment is even lower. Therefore, the Agency believes 
that the rule will not have a significant economic impact on a 
substantial number of small entities.

Paperwork Reduction Act

    In accordance with section 3507(d) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the information collection was 
approved under 0583-0153. This rule contains no other paperwork 
requirements.
    Copies of this information collection assessment can be obtained 
from Gina Kouba, Paperwork Reduction Act Coordinator, Food Safety and 
Inspection

[[Page 42233]]

Service, USDA, 1400 Independence Ave. SW., Room 6077 South Building, 
Washington, DC 20250-3700; (202) 690-6510.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under this rule: (1) All State and local laws and 
regulations that are inconsistent with this rule will be preempted; (2) 
no retroactive effect will be given to this rule; and (3) no 
administrative proceedings will be required before parties may file 
suit in court challenging this rule.

E-Government Act

    FSIS and USDA are committed to achieving the purposes of the E-
Government Act (44 U.S.C. 3601, et seq.) by, among other things, 
promoting the use of the Internet and other information technologies 
and providing increased opportunities for citizen access to Government 
information and services, and for other purposes.

Executive Order 13175

    This final rule has been reviewed in accordance with the 
requirements of Executive Order 13175, Consultation and Coordination 
with Indian Tribal Governments. The review reveals that this regulation 
will not have substantial and direct effects on Tribal governments and 
will not have significant Tribal implications.

USDA Non-Discrimination Statement

    No agency, officer, or employee of the USDA shall, on the grounds 
of race, color, national origin, religion, sex, gender identity, sexual 
orientation, disability, age, marital status, family/parental status, 
income derived from a public assistance program, or political beliefs, 
exclude from participation in, deny the benefits of, or subject to 
discrimination any person in the United States under any program or 
activity conducted by the USDA.

How To File a Complaint of Discrimination

    To file a complaint of discrimination, complete the USDA Program 
Discrimination Complaint Form, which may be accessed online at http://www.ocio.usda.gov/sites/default/files/docs/2012/Complain_combined_6_8_12.pdf, or write a letter signed by you or your 
authorized representative.
    Send your completed complaint form or letter to USDA by mail, fax, 
or email:
    Mail: U.S. Department of Agriculture, Director, Office of 
Adjudication, 1400 Independence Avenue SW., Washington, DC 20250-9410.
    Fax: (202) 690-7442.
    Email: program.intake@usda.gov.
    Persons with disabilities who require alternative means for 
communication (Braille, large print, audiotape, etc.), should contact 
USDA's TARGET Center at (202) 720-2600 (voice and TDD).
Additional Public Notification
    FSIS will announce this rule online through the FSIS Web page 
located at http://www.fsis.usda.gov/wps/portal/fsis/topics/regulations/federal-register/interim-and-final-rules.
    FSIS will also make copies of this Federal Register publication 
available through the FSIS Constituent Update, which is used to provide 
information regarding FSIS policies, procedures, regulations, Federal 
Register notices, FSIS public meetings, and other types of information 
that could affect or would be of interest to constituents and 
stakeholders. The Update is communicated via Listserv, a free 
electronic mail subscription service for industry, trade groups, 
consumer interest groups, health professionals, and other individuals 
who have asked to be included. The Update is also available on the FSIS 
Web page. In addition, FSIS offers an electronic mail subscription 
service which provides automatic and customized access to selected food 
safety news and information. This service is available at http://www.fsis.usda.gov/subscribe.
    Options range from recalls to export information to regulations, 
directives, and notices. Customers can add or delete subscriptions 
themselves, and have the option to password protect their accounts.

List of Subjects

9 CFR Part 312

    Food labeling, Meat inspection, Signs and symbols.

9 CFR Part 322

    Exports, Meat inspection.

9 CFR Part 350

    Meat inspection, Reporting and recordkeeping requirements.

9 CFR Part 362

    Meat inspection, Poultry and poultry products, Reporting and 
recordkeeping requirements.

9 CFR Part 381

    Meat inspection, Poultry and poultry products, Reporting and 
recordkeeping requirements.

9 CFR Part 590

    Eggs and egg products, Exports, Food grades and standards, Food 
labeling, Imports, Reporting and recordkeeping requirements.

9 CFR Part 592

    Eggs and egg products, Exports, Food grades and standards, Food 
labeling, Imports, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, FSIS amends 9 CFR 
chapter III as follows:

PART 312--OFFICIAL MARKS, DEVICES AND CERTIFICATES

0
1. The authority citation for part 312 continues to read as follows:

    Authority:  21 U.S.C. 601-695; 7 CFR 2.17, 2.55.


0
2. Revise Sec.  312.8 to read as follows:


Sec.  312.8  Export inspection marks.

    The export inspection mark required in Sec.  322.1 of this chapter 
must be either a mark that contains a unique identifier that links the 
consignment to the export certificate or an official mark with the 
following form:\1\
---------------------------------------------------------------------------

    \1\ The number ``1234567'' is given as an example only. The 
number on the mark will correspond to the printed number on the 
export certificate.
[GRAPHIC] [TIFF OMITTED] TR29JN16.015

---------------------------------------------------------------------------
PART 322--EXPORTS

0
3. The authority citation for part 322 continues to read as follows:

    Authority: 21 U.S.C. 601-695; 7 CFR 2.17, 2.55.


0
4. Revise Sec.  322.1 to read as follows:


Sec.  322.1  Marking products for export.

    (a) When authorized by inspection personnel, establishment 
personnel must mark the outside container of any inspected and passed 
product for export, the securely enclosed pallet within the 
consignment, or closed means of conveyance transporting the 
consignment, with a mark that contains a unique identifier that links 
the consignment to the export certificate or an official mark as 
described in Sec.  312.8 of this chapter. Ship stores, small quantities 
exclusively for the personal use of the consignee and not for sale or 
distribution, and shipments by and for the U.S. Armed Forces, are 
exempt from the requirements of this section.

[[Page 42234]]

    (b) When authorized by inspection personnel, establishments must 
mark each tank car of inspected and passed lard or similar edible 
product, and each door of each railroad car or other closed means of 
conveyance, containing inspected and passed loose product shipped 
directly to a foreign country, with an export inspection mark as shown 
in Sec.  312.8 of this subchapter.

0
5. Revise Sec.  322.2 to read as follows:


Sec.  322.2  Export certification.

    (a) Exporters must apply for export certification of inspected and 
passed products shipped to any foreign country. Exporters may apply for 
an export certificate using a paper or electronic application. FSIS 
will assess exporters that submit an electronic application the charge 
in Sec.  350.7(e) of this chapter.
    (b) FSIS will issue only one certificate for each consignment, 
except in the case of error in the certificate or loss of the 
certificate originally issued. A request for a replacement certificate, 
except in the case of a lost certificate, must be accompanied by the 
original certificate. The new certificate will carry the following 
statement: ``Issued in replacement of ___'', with the numbers of the 
certificates that have been superseded.
    (c) FSIS will deliver a copy of the certificate to the exporter. 
The exporter may furnish the copy of the certificate to the consignee 
for purposes of affecting the entry of product into the foreign country 
of destination.
    (d) FSIS will retain a copy of the certificate.
    (e) Exporters may request inspection personnel to issue 
certificates for export consignments of product of official 
establishments not under their supervision, provided the consignments 
are first identified as having been ``U.S. inspected and passed,'' are 
found to be neither adulterated nor misbranded, and are marked as 
required by Sec.  322.1.

PART 350--SPECIAL SERVICES RELATING TO MEAT AND OTHER PRODUCTS

0
6. The authority citation for part 350 continues to read as follows:

    Authority:  7 U.S.C. 1622, 1624; 7 CFR 2.17, 2.55.


0
7. In Sec.  350.7, add paragraphs (e), (f), and (g) to read as follows:


Sec.  350.7  Fees and charges.

* * * * *
    (e) Exporters that submit electronic export certificate 
applications will be charged a fee per application submitted.
    (f) For each calendar year, FSIS will calculate the electronic 
export certificate application fee, using the following formula: Labor 
Costs (Technical Support Cost + Export Library Maintenance Cost) + 
Information Technology Costs (On-going operations Cost + Maintenance 
Cost + eAuthentication Cost), divided by the number of export 
applications.
    (g) FSIS will publish notice of the electronic export certificate 
application fee annually in the Federal Register.

PART 362--VOLUNTARY POULTRY INSPECTION REGULATIONS

0
8. The authority citation for part 362 continues to read as follows:

    Authority:  7 U.S.C 1622; 7 CFR 2.18(g) and (i) and 2.53.


0
9. In Sec.  362.5, add paragraphs(e), (f), and (g) to read as follows:


Sec.  362.5  Fees and charges.

* * * * *
    (e) Exporters that submit electronic export certificate 
applications will be charged a fee per application submitted.
    (f) For each calendar year, FSIS will calculate the electronic 
export certificate application fee, using the following formula: Labor 
Costs (Technical Support Cost + Export Library Maintenance Cost) + 
Information Technology Costs (On-going operations Cost + Maintenance 
Cost + eAuthentication Cost), divided by the number of export 
applications.
    (g) FSIS will publish notice of the electronic export certificate 
application fee annually in the Federal Register.

PART 381--POULTRY PRODUCTS INSPECTION REGULATIONS

0
10. The authority citation for part 381 continues to read as follows:

    Authority: 7 U.S.C. 138F, 450; 21 U.S.C. 451-470; 7 CFR 2.7, 
2.18, 2.53.


0
11. Revise Sec.  381.104 to read as follows:


Sec.  381.104  Export inspection marks.

    The export inspection mark required in Sec.  381.105 must be either 
a mark that contains a unique identifier that links the consignment to 
the export certificate or an official mark with the following form: \1\
[GRAPHIC] [TIFF OMITTED] TR29JN16.016

    \1\ The number ``1234567'' is given as an example only. The 
number on the mark will correspond to the printed number on the 
export certificate.

0
12. Revise Sec.  381.105 to read as follows:


Sec.  381.105  Marking products for export.

    When authorized by inspection personnel, establishments must mark 
the outside container of any inspected and passed product for export, 
the securely enclosed pallet within the consignment, or closed means of 
conveyance transporting the consignment, with a mark that contains a 
unique identifier that links the consignment to the export certificate 
or an official mark as described in Sec.  381.104. Ship stores, small 
quantities exclusively for the personal use of the consignee and not 
for sale or distribution, and shipments by and for the U.S. Armed 
Forces, are exempt from the requirements of this section.

0
13. Revise Sec.  381.106 to read as follows:


Sec.  381.106  Export certification.

    (a) Exporters must apply for export certification of inspected and 
passed products to any foreign country. Exporters may apply for an 
export certificate using a paper or electronic application. FSIS will 
assess exporters that submit an electronic application the charge in 
Sec.  362.5(e) of this chapter.
    (b) FSIS will issue only one certificate for each consignment, 
except in the case of error in the certificate or loss of the 
certificate originally issued. A request for a replacement certificate, 
except in the case of a lost certificate, must be accompanied by the 
original certificate. The new certificate will carry the following 
statement: ``Issued in replacement of ___'', with the numbers of the 
certificates that have been superseded.
    (c) FSIS will deliver a copy of the certificate to the person who 
requested such certificate or his agent. Such persons may duplicate the 
certificate as required in connection with the exportation of the 
product.
    (d) FSIS will retain a copy of the certificate.
    (e) Exporters may request inspection personnel to issue 
certificates for export consignments of product of official 
establishments not under their supervision, provided the consignments 
are first identified as having been ``U.S. inspected and passed,'' are 
found to be

[[Page 42235]]

neither adulterated nor misbranded, and are marked as required by Sec.  
381.105.

PART 590--INSPECTION OF EGGS AND EGG PRODUCTS (EGG PRODUCTS 
INSPECTION ACT)

0
14. The authority citation for part 590 continues to read as follows:

    Authority: 21 U.S.C. 1031-1056.


0
15. Add Sec.  590.407 to read as follows:


Sec.  590.407  Export certification and marking of containers with 
export inspection mark.

    (a) Exporters must apply for export certification of inspected and 
passed products shipped to any foreign country. Exporters may apply for 
an export certificate using a paper or electronic application. FSIS 
will assess exporters that submit an electronic application the charge 
in Sec.  592.500(d) of this chapter.
    (b) FSIS will issue only one certificate for each consignment, 
except in the case of error in the certificate or loss of the 
certificate originally issued. A request for a replacement certificate, 
except in the case of a lost certificate, must be accompanied by the 
original certificate. The new certificate will carry the following 
statement: ``Issued in replacement of ___'', with the numbers of the 
certificates that have been superseded.
    (c) FSIS will deliver a copy of the export certificate to the 
person who requested such certificate or his agent. Such persons may 
duplicate the certificate as required in connection with the 
exportation of the product.
    (d) FSIS will retain a copy of the certificate.
    (e)(1) When authorized by inspection personnel, establishments must 
mark the outside container of any inspected and passed egg products 
destined for export, the securely enclosed pallet within the 
consignment, or closed means of conveyance transporting the 
consignment, with a mark that contains a unique identifier that links 
the consignment to the export certificate or an official mark with the 
following form: \1\
---------------------------------------------------------------------------

    \1\ The number ``1234567'' is given as an example only. The 
number on the export certificate will correspond to the printed 
number on the export certificate.
[GRAPHIC] [TIFF OMITTED] TR29JN16.017

    (2) Ship stores, small quantities exclusively for the personal use 
of the consignee and not for sale or distribution, and shipments by and 
for the U.S. Armed Forces, are exempt from the requirements of this 
section.
    (f) Exporters may request inspection personnel to issue 
certificates for export consignments of product of official 
establishments not under their supervision, provided the consignments 
are first identified as having been ``U.S. inspected and passed,'' are 
found to be neither adulterated nor misbranded, and are marked as 
required by paragraph (e) of this section.

PART 592--VOLUNTARY INSPECTION OF EGG PRODUCTS

0
16. The authority citation for part 592 continues to read as follows:

    Authority:  7 U.S.C. 1621-1627.


0
17. In Sec.  592.20, add paragraph (d) to read as follows:


Sec.  592.20  Kinds of services available.

* * * * *
    (d) Export certification. Upon application, by any person intending 
to export any egg product, inspectors may make certifications regarding 
products for human food purposes, to be exported, as meeting conditions 
or standards that are not imposed or are in addition to those imposed 
by the regulations in the part and the laws under which such 
regulations were issued.

0
18. In Sec.  592.500, revise paragraph (a) and add paragraphs (d), (e), 
and (f) to read as follows:


Sec.  592.500  Payment of fees and charges.

    (a) Fees and charges for voluntary base time rate, overtime 
inspection service, holiday inspection service, and electronic export 
applications shall be paid by the interested party making the 
application for such service, in accordance with the applicable 
provisions of this section and Sec.  592.510 through Sec.  592.530, 
both inclusive. If so required by the inspection personnel, such fees 
and charges shall be paid in advance.
* * * * *
    (d) Exporters that submit electronic export certificate 
applications will be charged a fee per application submitted.
    (e) For each calendar year, FSIS will calculate the electronic 
export certificate application fee, using the following formula: Labor 
Costs (Technical Support Cost + Export Library Maintenance Cost) + 
Information Technology Costs (On-going operations Cost + Maintenance 
Cost + eAuthentication Cost), divided by the number of export 
applications.
    (f) FSIS will publish notice of the electronic export certificate 
application fee annually in the Federal Register.

    Done at Washington, DC, on June 17, 2016.
Alfred V. Almanza,
Acting Administrator.
[FR Doc. 2016-14812 Filed 6-28-16; 8:45 am]
 BILLING CODE 3410-DM-P