Regulations Issued Under Authority of the Export Apple Act and Export Grapes and Plums; Changes to Export Reporting Requirements, 87486-87493 [2016-29017]
Download as PDF
<![CDATA[
87486
Proposed Rules
Federal Register
Vol. 81, No. 233
Monday, December 5, 2016
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 33 and 35
[Doc. No. AMS–FV–14–0099; FV15–33/35–1
PR]
Regulations Issued Under Authority of
the Export Apple Act and Export
Grapes and Plums; Changes to Export
Reporting Requirements
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
change the reporting of export certificate
information under regulations issued
pursuant to the Export Apple Act (7
CFR part 33) and the Export Grape and
Plum Act (7 CFR part 35). This change
would require shippers of apples and
grapes exported from the United States
to electronically enter an Export Form
Certificate number or a USDA-defined
exemption code into the Automated
Export System (AES). This rule would
also define ‘‘shipper,’’ shift the current
file retention requirement from carriers
to shippers, and require shippers to
provide, upon request, copies of the
certificates to the Agricultural
Marketing Service (AMS). These
changes would enable AMS to track
exported apple and grape shipments to
ensure that exports meet inspection and
certification requirements. This action is
also required to support the
International Trade Data System (ITDS),
a key White House economic initiative
that will automate the filing of export
and import information by the trade.
This proposal would also remove
obsolete regulations and make clarifying
changes. It also announces AMS’
intention to request revision to a
currently approved information
collection for exported apples and
grapes.
sradovich on DSK3GMQ082PROD with PROPOSALS
SUMMARY:
Comments must be received by
January 4, 2017.
DATES:
VerDate Sep<11>2014
17:33 Dec 02, 2016
Jkt 241001
Interested persons are
invited to submit written comments
concerning this proposal. Comments
must be sent to the Docket Clerk,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Fax: (202) 720–8938; or
Internet: https://www.regulations.gov. All
comments should reference the
document number and the date and
page number of this issue of the Federal
Register and will be made available for
public inspection in the Office of the
Docket Clerk during regular business
hours, or can be viewed at: https://
www.regulations.gov. All comments
submitted in response to this proposal
will be included in the record and will
be made available to the public. Please
be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
Internet at the address provided above.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Shannon Ramirez, Compliance and
Enforcement Specialist, or Vincent
Fusaro, Compliance and Enforcement
Branch Chief, Marketing Order and
Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (202)
720–2491, Fax: (202) 720–8938, or
Email: Shannon.Ramirez@ams.usda.gov
or VincentJ.Fusaro@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Antoinette
Carter, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Antoinette.Carter@ams.usda.gov.
This
proposed rule is issued under the
Export Apple Act (7 U.S.C. 581–590)
and the Export Grape and Plum Act (7
U.S.C. 591–599) (together hereinafter
referred to as the ‘‘Export Fruit Acts’’).
The Export Fruit Acts promote foreign
trade of U.S.-grown fruit by authorizing
the implementation of regulations
related to quality, container markings,
and inspection requirements. These
regulations are contained in 7 CFR part
33 (Regulations Issued under the Export
Apple Act) and 7 CFR part 35 (Export
Grapes and Plums).
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
Executive Order 12866 and Executive
Order 13563
Executive Orders 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
equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. This action has
been designated as a ‘‘non-significant
regulatory action’’ under section 3(f) of
Executive Order 12866. Accordingly,
the Office of Management and Budget
(OMB) has waived the review process.
Executive Order 13175
This action 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 would not have
substantial and direct effects on Tribal
governments and would not have
significant Tribal implications.
Executive Order 12988
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. This proposed rule is
not intended to have retroactive effect
and shall not abrogate nor nullify any
other regulations, whether State or
Federal, dealing with the same subjects.
It is intended that all such regulations
shall remain in full force and effect
except in so far as they are inconsistent
herewith or repugnant hereto (7 U.S.C.
587; 7 U.S.C. 597).
The Export Fruit Acts provide for
administrative proceedings that must be
exhausted before parties may file suit in
court. Pursuant to 7 U.S.C. 586 and
sections 33.13 and 33.14 of the
regulations (for apples) and 7 U.S.C. 596
and sections 35.14 and 35.15 of the
regulations (for grapes), any person
subject to the Export Fruit Acts may file
with USDA a request for hearing, along
with a written responsive answer to
alleged violations of the provisions of
the Export Fruit Acts and regulations,
no later than 10 days after service of
notice of alleged violations. After
opportunity for hearing, the Secretary is
E:\FR\FM\05DEP1.SGM
05DEP1
sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 / Proposed Rules
authorized to refuse the issuance of
certificates under the Export Fruit Acts
for a period not exceeding 90 days.
This proposed rule would change the
reporting of export certificate
information under regulations issued
pursuant to both the Export Apple Act
and the Export Grape and Plum Act (7
CFR part 33, ‘‘Regulations Issued Under
Authority of the Export Apple Act,’’ and
7 CFR part 35, ‘‘Export Grapes and
Plums,’’ respectively). Shippers of
apples and grapes exported from the
United States subject to inspection
would be required to enter the
certificate number from inspection
certificates (i.e., Export Form
Certificates) into AES. For apples
shipped to Canada in bulk containers,
which are exempt from inspection
requirements, shippers would be
required to enter a special USDAdefined exemption code in lieu of an
Export Form Certificate number.
Shippers would also be required to
maintain paper or electronic copies of
the certificates and to provide copies to
AMS upon request. AMS is responsible
for monitoring apple and grape export
shipments, and these proposed
regulatory changes would help ensure
that these shipments comply with
inspection and certification
requirements.
This proposed rule would also define
‘‘shipper’’ and would remove the
requirement that carriers of exported
apples and grapes retain certificates on
file (because the requirement to retain
the certificates would shift to shippers
of exported apples and grapes). It would
also remove regulations that are no
longer applicable to grape exports and
add structure and language to clarify the
regulations.
Plums are not currently regulated
under the Export Grape and Plum Act;
therefore, this change would not impact
shipments of plums exported from the
United States. If plums exported from
the United States are regulated in the
future under the Export Grape and Plum
Act, the reporting of export certificate
information similar to what is being
proposed herein for exported grapes and
apples would be proposed.
Sections 33.11(a) and 35.12(b) of the
regulations issued under the Export
Fruit Acts for apples and grapes,
respectively, specify that, prior to
export, the fruit must be inspected by
the Federal or Federal-State Inspection
Service (unless the fruit is otherwise
exempted from inspection under the
Export Fruit Acts). These sections
further specify that Export Form
Certificates must be issued by the
inspection service and must contain a
statement indicating the fruit meets the
VerDate Sep<11>2014
17:33 Dec 02, 2016
Jkt 241001
requirements of the Export Fruit Acts.
Additionally, these sections currently
require that shippers provide a copy of
the certificates to the export carrier or,
in those instances where the fruit is
inspected and certified at any location
other than the port of exportation, to the
agent of the first carrier who transports
the fruit to port for exportation. These
two sections also currently contain
requirements related to the retention of
certificates by export carriers and spray
residue tolerance.
Section 33.12 of the export apple
regulations specifies those apples that
are not subject to regulation, including
apples shipped to Canada in bulk
containers (§ 33.12(d)), which are
containers that hold a quantity of apples
weighing more than 100 pounds.
Sections 33.2 and 33.4 of the export
apple regulations and §§ 35.2 and 35.4
of the export grape regulations define
‘‘person’’ and ‘‘carrier,’’ respectively.
The term ‘‘shipper’’ is used in parts 33
and 35 but is not currently defined in
either of those regulations.
Filing Export Information in the
Automated Export System (AES)
The Foreign Relations Authorization
Act (FRAA) (Pub. L. 107–228)
authorizes regulations requiring that all
persons who are required to file export
information under Chapter 9 of Title 13
of the U.S. Code (Collection and
Publication of Foreign Commerce and
Trade Statistics) file such information
through the Automated Export System
(AES) for all shipments where a paper
Shipper’s Export Declaration was
previously required. As such, shippers
of most U.S.-grown apples and grapes
are required to electronically file export
shipment information in AES.
AES is a joint venture between U.S.
Customs and Border Protection (CBP)
and the U.S. Census Bureau (Census)
that was implemented in phases,
starting in 1995. It is a nationwide
system, available at all U.S. ports, that
serves as a central point for the
electronic collection of export data that
are used by several different Federal
government agencies including Census
and CBP. Census regulations issued
under the authority of the FRAA and
related to AES include the Foreign
Trade Regulations (15 CFR part 30) and
the Export Clearance Requirements (15
CFR part 758).
AMS is responsible for enforcing the
regulations under the Export Fruit Acts,
including verifying that exported apples
and grapes that are subject to regulation
are inspected and certified as meeting
quality requirements. However, the
Export Fruit Acts regulations do not
currently require that shippers provide
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
87487
AMS with information about inspected
and certified fruit.
AMS has determined that access to
the Census Bureau’s AES data would
allow AMS to monitor compliance with
and enforce the regulations issued
under the Export Fruit Acts. As a result,
AMS and Census have entered into a
Memorandum of Understanding that
will give AMS access to certain specific
data in the AES related to apple and
grape exports, including an Export Form
Certificate number that is associated
with each lot of inspected and certified
fruit or, in lieu of a certificate number,
a USDA-defined exemption code (BULK
CONTRS) for apples shipped to Canada
in bulk containers.
For those apples and grapes subject to
inspection, information about each
inspected lot of apples or grapes is
noted on an Export Form Certificate
(FV–205 or FV–207 paper form; FV–
205e and FV–207e electronic form) that
is completed by an inspector. In
addition to stating whether the lot meets
the export requirements, the certificate
also contains information about the date
and place of inspection; the name of the
applicant; and the quantity, variety, and
identification marks of the lot. The
certificate is provided to the shipper
and is identified with a unique
certificate number. The inspection
service that inspects and certifies the
export shipment will also electronically
maintain the certificate information.
AMS believes that the most effective
way to verify that apple and grape
exports meet export inspection and
certification requirements would be to
have shippers enter the unique Export
Form Certificate numbers into the AES.
AMS would then verify the validity of
a certificate number by cross-referencing
it and the associated shipment
information with inspection data (e.g.,
certificate number, variety, quantity)
that AMS would receive from its
Specialty Crops Inspection (SCI)
Division.
Some exported apples and grapes are
exempt from the inspection
requirements of the Export Fruit Acts
regulations pursuant to § 33.12 for
apples and §§ 35.12 and 35.13 for
grapes. In most instances, information
about a shipment (e.g., the weight and
destination of the shipment) that is
entered by a shipper (or shipper’s agent)
into AES will determine if the shipper
is required to also enter an Export Form
Certificate number in AES. As an
example, a shipment of apples weighing
less than 5,000 pounds exported to any
foreign country is exempt from
inspection requirements. If a shipment
of apples weighing 4,000 pounds is
destined for Canada, this information
E:\FR\FM\05DEP1.SGM
05DEP1
sradovich on DSK3GMQ082PROD with PROPOSALS
87488
Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 / Proposed Rules
would be entered into AES. From that
AES shipment information, the system
would determine that entry of an Export
Form Certificate number was not
required because the shipment is
exempt from inspection requirements.
In comparison, if a shipment of apples
weighing 6,000 pounds in bulk
containers is destined for Canada, the
shipper’s entry of that shipment’s
weight and destination into AES would
trigger the requirement that the shipper
enter an Export Form Certificate number
because the weight and destination of
the shipment would meet the
parameters associated with mandatory
inspection. However, apples in bulk
containers destined for Canada are
exempt from inspection requirements
pursuant to § 33.12(d). Currently, there
is no mechanism within AES that will
recognize this exemption, so USDA has
created a special exemption code (BULK
CONTRS) that shippers of these apples
would enter in the Export Form
Certificate field in lieu of a certificate
number. Entry of this special USDAdefined exemption code would enable
shippers of apples in bulk containers
destined for Canada to complete the
entry of information in AES.
In the future, AMS intends to work
with Census to develop a new
harmonized tariff schedule (HTS) code
specifically for exported apples in bulk
containers that are destined for Canada.
Once this HTS code is developed,
shippers would enter that code into
AES, which would signal to AES that
the shipment is exempt and would
therefore not require entry of the special
exemption code. Once this new HTS
code becomes available, changes to the
regulations would be proposed to
remove the requirement to enter the
special BULK CONTRS exemption code.
As noted earlier, most shippers are
accustomed to entering data about
exports into AES to create mandatory
Electronic Export Information (EEI)
about each shipment. There are various
methods for filing EEI into AES, such as
through AES-certified software from a
third-party vendor or through
AESDirect, a free Internet application
supported by Census. The EEI contains
basic information about an export
including but not limited to the names
and addresses of the parties to a
transaction; the Harmonized Tariff
Schedule number; and the description,
quantity, and value of the exported
items. In 2014, the Census Bureau
agreed to mandate entry of the Export
Form Certificate number (or the
exemption code for apples shipped in
bulk containers to Canada) by shippers
in the AES for AMS’ tracking and
enforcement purposes. Shippers would
VerDate Sep<11>2014
17:33 Dec 02, 2016
Jkt 241001
be required to electronically enter
Export Form Certificate numbers or the
exemption code for bulk container
apples destined for Canada (BULK
CONTRS) in AES. To require that
shippers enter the Export Form
Certificate number or, when applicable,
the BULK CONTRS exemption code, the
Export Fruit Acts regulations would be
revised to add a new § 33.11(b) for
apples and a new § 35.12(d) for grapes.
This proposed action would also
require a shipper to maintain and
submit, upon request, a paper or
electronic copy of the Export Form
Certificate to AMS. As previously noted,
AMS would compare EEI from AES
against inspection information from its
SCI Division. However, there could be
instances when AMS might need further
verification of inspection and would,
therefore, need to request a copy of the
Export Form Certificate from the
shipper. For example, if a certificate
number in AES does not match any
certificate numbers in SCI-provided
data, AMS might require that the
shipper provide a copy of an Export
Form Certificate to AMS so that the
information on that certificate could be
compared against the EEI from AES.
These proposed changes would give
AMS the ability to track exports of
apples and grapes to confirm that
quality requirements are being met.
Accordingly, this requirement would be
added to the Export Fruit Acts
regulations in § 33.11(c) for apples and
§ 35.12(c) for grapes.
In conjunction with these proposed
new recordkeeping requirements, this
proposed action would also remove the
requirement in § 33.11(a) for apples and
§ 35.12(c) for grapes that carriers of
exported fruit retain a copy of the
Export Form Certificate. This
requirement would no longer be
necessary for AMS compliance
monitoring because, as proposed herein,
shippers would be required to retain a
copy of the certificate (and upon
request, the shipper would be required
to provide such copy, electronically or
in paper form, to AMS).
Streamlining the Export Process Under
the International Trade Data System
(ITDS)
Changing the Export Fruit Acts
regulations to provide for the electronic
entry of an Export Form Certificate
number supports the International
Trade Data System (ITDS), a key White
House economic initiative that has been
under development for over ten years
and is mandated for completion by
December 31, 2016 (pursuant to
Executive Order 13659, Streamlining
the Export/Import Process for America’s
PO 00000
Frm 00003
Fmt 4702
Sfmt 4702
Businesses, signed by President Obama
on February 19, 2014; 79 FR 10657).
Under ITDS, the export and import
trade will file shipment data through an
electronic ‘‘single window,’’ instead of
completing multiple paper-based forms
to report the same information to
different government agencies. ITDS
will greatly reduce the burden on
America’s export and import trade
while still providing information
necessary for the United States to ensure
compliance with its laws.
By the end of 2016, the ITDS ‘‘single
window’’ will be presented to the export
and import trade through CBP’s
Automated Commercial Environment
(ACE) platform. ACE will be the primary
system through which the global trading
community will file information about
imports and exports so that
admissibility into the U.S. may be
determined and government agencies
may monitor compliance.
In March 2014, AES functionality was
incorporated into ACE, and export
transactions are now processed in ACE.
The migration of AES functionality to
ACE was, for the most part, transparent
to filers of export shipment data. This
system migration supports the ITDS
‘‘single window’’ because, as noted
earlier, ACE will be the system
primarily used by the trade community
to file import and export shipment data,
with the functionality of AES embedded
within that system.
Prior to the implementation of the
ITDS ‘‘single window,’’ CBP is requiring
that the 47 partnering government
agencies (PGAs) that are participating in
the ITDS project, including AMS,
ensure that agency regulations provide
for the electronic entry of export and/or
import information.
AMS’ Marketing Order and
Agreement Division (MOAD) is
currently developing the functionality
of a new automated system called the
Compliance and Enforcement
Management System (CEMS) that will
store and analyze data in support of
ITDS. CEMS will receive export data
from the ACE system that will be
utilized in monitoring compliance with
regulations under the Export Fruit Acts.
The revised reporting requirements
for exported apples and grapes will
meet CBP’s requirements for ITDS/ACE
by providing for the electronic entry of
the Export Form Certificate number (or
the special BULK CONTRS exemption
code, when applicable).
Miscellaneous Proposed Changes
In addition to the previously
described changes, this action would
make changes to update and clarify the
regulations. First, a definition of
E:\FR\FM\05DEP1.SGM
05DEP1
Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 / Proposed Rules
‘‘shipper’’ would be added to the
regulations in § 33.9 for apples and
§ 35.9 for grapes. This change is
intended to provide clarity about a
commonly used term.
Additionally, gender-specific
language would be changed from ‘‘he’’
to ‘‘he or she’’ in new § 33.11(d) and
§ 35.12(e).
In addition, existing § 35.12(d) would
be removed because it is no longer
needed. The requirements in § 35.12(d)
were enacted to fulfill provision 2 of the
Export Grape and Plum Act (7 U.S.C.
592), which provides that grapes could
be shipped in fulfillment of contracts
that were entered into prior to the
effective date of the Export Grape and
Plum Act regulations, as long as those
grapes were shipped within 2 months of
the date of the contracts. The intent of
§ 35.12(d) was to provide exporters with
an opportunity to meet prior contractual
obligations and comply with the newly
enacted regulations without meeting
additional requirements. Because the
need for § 35.12(d) no longer exists, this
section would be removed.
Finally, in addition to new paragraphs
being added to §§ 33.11 and 33.12,
existing §§ 33.11(a) and 35.12(b)(2)
would be reorganized into multiple
paragraphs in an effort to make the
regulations easier to read, understand,
and follow. Adding additional
requirements to already lengthy
paragraphs might cause confusion and
misunderstanding; therefore,
reorganization was deemed to be
appropriate. To further improve the
overall readability of §§ 33.11 and 35.12,
headings would also be added at the
beginning of each paragraph to help the
reader quickly identify the paragraph’s
content.
sradovich on DSK3GMQ082PROD with PROPOSALS
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
action on small entities. Accordingly,
AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Small agricultural service firms,
including shippers and carriers, are
defined by the Small Business
Administration (SBA) as those having
annual receipts of less than $7,500,000,
and small agricultural producers are
defined as those having annual receipts
of less than $750,000 (13 CFR 121.201).
VerDate Sep<11>2014
17:33 Dec 02, 2016
Jkt 241001
This proposed rule would change the
reporting of export certificate
information under regulations issued
pursuant to the Export Apple Act and
the Export Grape and Plum Act (7 CFR
part 33, ‘‘Regulations Issued Under
Authority of the Export Apple Act,’’ and
7 CFR part 35, ‘‘Export Grapes and
Plums,’’ respectively) by requiring
shippers of apples and grapes exported
from the United States to enter into AES
the certificate numbers of Export Form
Certificates for such exports (or, in lieu
of certificate numbers, the exemption
code BULK CONTRS for apples in bulk
bins destined for Canada). It would also
require shippers to provide, upon
request, paper or electronic copies of the
certificates to AMS. It would also
remove the requirement that carriers
retain copies of the certificates. Plums
are not currently regulated under 7 CFR
part 35, so this change has no impact on
exporters or carriers of plums.
Requiring shippers of apples and
grapes to electronically enter an export
certificate number (or the BULK
CONTRS exemption code) would have
very little impact on them. The
certificate number is currently provided
to shippers on the certificate they
receive from the Federal or FederalState Inspection Service, and AMS is
providing the special BULK CONTRS
exemption code to shippers for those
instances when it is required. Also,
shippers already use AES to enter
Electronic Export Information (EEI)
about shipments, currently approved for
collection under OMB No. 0607–0152,
and entry of the certificate number or
exemption code would be part of that
EEI process.
Finally, shippers currently provide
copies of Export Form Certificates to
other parties, such as carriers, as
required by the Export Fruit Acts
regulations. Therefore, requiring
shippers to provide AMS with a copy of
an Export Form Certificate (upon
request, when other methods of
compliance verification are not
available to AMS) would be a usual and
customary practice. This proposed
action would also require that shippers
maintain certificates (electronic or
paper) on file for a minimum of three (3)
years in the event AMS would require
that a shipper provide proof of
inspection for compliance purposes.
Maintaining records, such as export
certificates, is a standard business
practice and, therefore, should not have
a major economic impact on shippers.
These proposed changes would create
a minimal burden on shippers while
providing AMS with the ability to
properly monitor export shipments for
compliance with the regulations.
PO 00000
Frm 00004
Fmt 4702
Sfmt 4702
87489
Removing the requirement that
carriers of exported apples and grapes
retain copies of inspection certificates
(Export Form Certificates) would reduce
the recordkeeping burden on those
carriers.
According to apple industry statistics,
there are approximately 60 shippers of
exported apples subject to regulation
under the Export Apple Act. USDA’s
Foreign Agricultural Service (FAS) data
estimates the value of fresh apple
exports subject to regulation in 2015
was approximately $1.0 billion.
Therefore, the estimated receipts for
shippers of exported apples is well over
$7,500,000.
According to grape industry
information, there are approximately 14
shippers of exported grapes subject to
regulation under the Export Grape and
Plum Act. Data provided by FAS
indicate that the estimated value of
grape exports in 2015 that were subject
to these regulations was $512 million.
Therefore, the estimated receipts for
shippers of exported grapes is well over
$7,500,000.
USDA estimates there are
approximately 15 carriers of exported
apples and 5 carriers of exported grapes
that would be impacted by the lessening
of regulatory requirements proposed by
this action. USDA does not have access
to data about the business sizes of these
carriers.
Based on the above information, it
may be concluded that a majority of
shippers of exported apples and grapes
would not be classified as small
businesses. USDA is unable to make a
determination about whether carriers of
exported apples and grapes could be
classified as small businesses.
This proposed rule is issued under
the authority of the Export Apple Act (7
U.S.C. 581–590), and the Export Grape
and Plum Act (7 U.S.C. 591–599). This
proposed rule proposes changing
‘‘Regulations Issued under Authority of
the Export Apple Act’’ (7 CFR part 33)
and ‘‘Export Grapes and Plums’’ (7 CFR
part 35). This action would require
shippers of apples and grapes exported
from the United States to enter the
Export Form Certificate number for
those exports into the U.S. Census
Bureau’s Automated Export System
(AES) (or, in lieu of a certificate number,
to enter exemption code BULK CONTRS
for apples in bulk containers destined
for Canada). It would also require
shippers to maintain and provide, upon
request, a paper or electronic copy of
the Export Form Certificate to AMS and
would remove the requirement that
carriers retain copies of the certificates.
These changes to the reporting
requirements would allow AMS to
E:\FR\FM\05DEP1.SGM
05DEP1
sradovich on DSK3GMQ082PROD with PROPOSALS
87490
Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 / Proposed Rules
verify that shipments of exported apples
and grapes are in compliance with the
quality requirement regulations.
There are estimated to be 60 shippers
of U.S.-grown apples, 14 shippers of
U.S.-grown grapes, and 20 carriers of
these apples and grapes subject to the
Export Fruit Acts regulations. The
shippers currently receive copies of
Export Form Certificates from the
Federal or Federal-State Inspection
Service upon completion of an
inspection of apples or grapes destined
for export. The regulations currently
require that the shippers provide copies
of the certificates to the export carriers
who transport the fruit, and these
carriers are, in turn, required to keep
these certificates on file for at least three
years following the date of export. The
burden of recordkeeping for the
maintenance of these certificates is
currently approved by the Office of
Management and Budget (OMB) under
OMB No. 0581–0143, ‘‘Export Fruit
Acts’’ (7 U.S.C. 581–590 and 7 U.S.C.
591–599).
Regarding alternatives to this
proposed action, AMS considered
making no changes to the Export Fruit
Acts regulations. However, AMS
determined that having the Export Form
Certificate number for apples and grapes
exported from the United States is
necessary for monitoring compliance of
these shipments with the regulations.
AMS also considered not requiring
shippers of apples in bulk containers
destined for Canada to enter a special
USDA-defined exemption code in lieu
of a certificate number. However, until
a new HTS code is created for these
exempt apples, shipments of bulk
containers of apples destined for Canada
will require entry of data in the AES
export certificate number field;
therefore, the BULK CONTRS
exemption code would enable shippers
of these apples to complete the
electronic entry of export data in AES.
AMS also considered requiring
shippers to provide AMS with a paper
or electronic copy of all Export Form
Certificates (rather than just upon
request) but determined that entering
the certificate number in AES would be
less burdensome for shippers. AMS also
determined that this change would meet
CBP’s requirement that all government
agencies who are partnering with CBP
on the ITDS project (including AMS)
update their regulations to provide for
the electronic entry of export and
import shipment data.
AMS also considered not requesting a
shipper to submit a copy of an Export
Form Certificate upon request; however,
there may be some unique cases where
additional verification of compliance
VerDate Sep<11>2014
17:33 Dec 02, 2016
Jkt 241001
would be required if AES or SCI data
were not sufficient.
Finally, AMS considered keeping the
requirement that carriers maintain
copies of the Export Form Certificates
on file; however, AMS determined that
the other changes proposed herein
would make this requirement redundant
and burdensome. Therefore, alternatives
to this proposed rule were rejected.
This proposed rule would revise the
information collection currently
approved under OMB No. 0581–0143 by
increasing the existing recordkeeping
burden on shippers and reducing the
existing recordkeeping burden on
carriers. These changes in burden will
be further explained in the Paperwork
Reduction Act section below.
AMS is responsible for enforcing the
regulations of the Export Fruit Acts,
including verification that export
shipments of apples and grapes meet
quality requirements. Currently, the
regulations do not require shippers of
these export fruits to provide AMS with
proof of inspection and certification
compliance. Without this proposed
change to the regulations, AMS will lack
the ability to effectively meet its duty of
enforcement.
AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this proposed rule.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Antoinette
Carter at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
A 30-day comment period is provided
to allow interested persons to respond
to this proposal. Thirty days is deemed
appropriate because (1) the export
industry is fully aware of ITDS and its
goal to streamline and automate paperbased processes and has attended
annual ITDS Trade Support Network
plenary sessions conducted by the U.S.
government over the past few years, and
(2) CPB is requiring the timely update
of import and export regulations to meet
the ITDS electronic data submission
requirement. All written comments
timely received will be considered
before a final determination is made on
this matter.
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
All written comments timely received
will be considered before a final
determination is made on this matter.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
chapter 35), AMS announces its
intention to submit a revision to a
currently approved information
collection.
Title: Export Fruit Acts, 7 U.S.C. 581–
590 and 7 U.S.C. 591–599.
OMB Number: 0581–0143.
Type of Request: Revision.
Abstract: The information collection
requirements contained in this request
are necessary for the administration of
proposed amendments to regulations
authorized by the Export Apple Act and
the Export Grape and Plum Act (‘‘Export
Fruit Acts’’). These regulations are
found at 7 CFR part 33, ‘‘Regulations
Issued under Authority of the Export
Apple Act,’’ and 7 CFR part 35, ‘‘Export
Grape and Plum Act.’’
Under the Export Fruit Acts
regulations, unless otherwise exempted
by those Acts, each shipment of fresh
apples and grapes must be inspected by
the Federal or Federal-State Inspection
Service to ensure the fruit meets quality
and other requirements effective under
the Acts. This inspection and
certification must occur prior to export.
If the inspection service determines that
a lot of apples or grapes intended for
export meets the applicable quality
requirements, the inspector completes
an Export Form Certificate (currently, a
paper FV–207 or electronic FV–207e for
non-Canadian export destinations and a
paper FV–205 or electronic FV–205e for
exports to Canada), certifying the fruit
meets quality export requirements and
providing shipping identification
information. This certificate is provided
to the shipper of the apples or grapes.
In turn, the shipper must then provide
a copy of the certificate to the export
carrier or, if the fruit is inspected and
certified somewhere other than the port
of exportation, to the agent of the first
carrier who transports the fruit to port
for exportation. Currently, export
carriers must keep these certificate
copies on file for at least three years
after the date of export.
A shipper does not currently
complete any form or file with USDA
any form or form-related information as
part of this inspection and certification
process.
This proposed action would establish
a requirement that shippers enter the
Export Form Certificate number
assigned to each inspection certificate
into the Automated Export System
(AES), an existing system that facilitates
E:\FR\FM\05DEP1.SGM
05DEP1
sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 / Proposed Rules
the electronic entry of information about
export shipments. The Marketing Order
and Agreement Division (MOAD) would
cross-reference this certificate number
and the associated export shipment
information (EEI) with inspection
information provided electronically to
MOAD by SCI, thereby allowing MOAD
to monitor compliance with the
regulations. The collection of AES data,
which would include the Export Form
Certificate number or the special BULK
CONTRS exemption code, is approved
under the Census Bureau’s OMB No.
0607–0152; therefore, the estimated
burden associated with the electronic
entry of the certificate number will not
be included in this USDA action.
In addition, this proposed action
would require shippers to maintain and
provide, upon request, a paper or
electronic copy of the Export Form
Certificate to MOAD when needed to
monitor compliance with regulations.
MOAD anticipates that the majority of
its compliance monitoring would be
accomplished by verifying the Export
Form Certificate number and other EEI
entered by a shipper into AES against
inspection data provided by SCI;
however, when needed, MOAD would
request copies of these certificates from
shippers to help verify that apple and
grape exports meet export inspection
and certification requirements.
Finally, this proposed action would
remove the requirement that carriers
retain a copy of the Export Form
Certificate. As noted above, this action
would add a requirement that a shipper
maintain and provide to MOAD, upon
request, a paper or electronic copy of
the certificate. MOAD would require a
shipper to submit a copy of the
certificate in those cases when it would
be needed to monitor compliance.
Because shippers would be responsible
for maintaining and submitting the
certificates, upon request, MOAD would
no longer require a carrier to retain a
copy of these certificates for its
compliance purposes.
A shipper’s failure to provide proof of
compliance to MOAD could result in a
compliance investigation and legal
action, if warranted.
The information collection under
OMB No. 0581–0143 was last approved
in 2013. On June 14, 2016, AMS
published a 60-day Notice in the
Federal Register announcing its intent
to renew the collection (81 FR 38656–
57), followed by a 30-day Notice in the
Federal Register for OMB review (81 FR
55428).
The currently approved collection
authorizes the use of FV–207
(inspection certificate for export
shipments bound for non-Canadian
VerDate Sep<11>2014
17:33 Dec 02, 2016
Jkt 241001
destinations). In the 2016 renewal, AMS
added the FV–205 form (inspection
certificate for Canadian-bound export
shipments) that is also used by SCI (the
FV–205 was not previously approved
under this or any other OMB collection)
and revised it to combine information
from the existing FV–205 and FV–207
forms. As a result, the existing FV–207
will be discontinued. In the 2016
renewal, AMS is also seeking OMB
approval to decrease the burden per
certificate from the currently approved
15 minutes to 5 minutes. This is
sufficient time to complete the related
recordkeeping actions.
In the last renewal of the collection in
2013, it was reported that a total of 102
respondents (68 shippers and 15 carriers
for exported apples, and 14 shippers
and 5 carriers for exported grapes) use
FV–207. Current industry data indicate
a slight reduction in the estimated
number of export apple shippers (60)
but no changes in the estimated number
of export grape shippers (14) or carriers
of export apples (15) and grapes (5).
The 2013 renewal reported the
number of certificates per year to be
approximately one response per
respondent. This suggested that there
were only 102 certificates issued per
year. This was reported in error, and the
2016 renewal provides more accurate
figures. USDA’s Foreign Agricultural
Service estimates that, for the five-year
period 2011–2015, the average number
of export apple and grape shipments
requiring inspection per year was
42,326 for apples and 10,462 for grapes,
for a total five-year average of 52,788
certificates per year that would need to
be maintained.
Based on this information and the
proposed decreased burden per
certificate, the 2016 renewal estimates a
total recordkeeping burden of 4,381
hours, an increase of 4,356 burden
hours from the currently approved 25
burden hours.
In addition, AMS estimates it may
require shippers to submit
approximately 10 percent of these
certificates (5,279) upon request. The
estimated burden for maintaining the
revised FV–205 form certificates as well
as for submitting an estimated 10
percent of those certificates to AMS,
when requested, would be 5 minutes,
which is less than the current 15-minute
recordkeeping burden. As a result of
this action, the information collection
package would be revised to reflect a
total estimated recordkeeping burden of
4,837 hours. Since carriers would no
longer be required to keep copies of the
certificates, the current recordkeeping
burden for carriers of apples and grapes
would be removed. AMS would submit
PO 00000
Frm 00006
Fmt 4702
Sfmt 4702
87491
a Justification for Change to OMB for
approval that encompasses these
revisions.
As noted earlier, the FV–205 form is
being revised to combine the
information contained on the existing
FV–205 and FV–207 forms; this change
will result in discontinuance of the FV–
207 form. The FV–205 update also adds
instructions for the shipper regarding
entry of the Export Form Certificate
number in AES for exported apples and
grapes and revises the text to include a
burden statement and other minor
modifications, such as updating the
program name in the form heading. SCI
will continue to use the existing
electronic versions of the forms (FV–
205e and FV–207e) until SCI’s Fresh
Electronic Inspection Reporting System
(FEIRS) is modified to reflect the data
contained in the revised FV–205 form.
FEIRS allows inspectors to
electronically enter and report
inspection data; it is able to
electronically transmit a certificate to an
email address or fax number, or the
certificate may be printed. Once the
necessary FEIRS revisions are
completed to enable entry of data to the
revised FV–205e form, the FV–207e
form will be discontinued.
Estimate of Burden: The public
reporting burden for this collection of
information is estimated to average 5
minutes per response for retention of
the certificate by shippers and also for
submission, upon request, of the
certificate by shippers to MOAD.
Respondents: Shippers of apple
exports and grape exports.
Estimated Number of Respondents: 74
(60 for apples and 14 for grapes).
Estimated Total Annual Responses:
58,067 (42,326 certificates maintained
and 4,233 certificates potentially
submitted to MOAD for apples; and
10,462 certificates maintained and 1,046
certificates potentially submitted to
MOAD for grapes).
Estimated Number of Responses per
Respondent: 775 for apples and 822 for
grapes.
Estimated Total Annual Burden on
Respondents: 4,837 hours.
Comments are invited on: (1) Whether
the proposed collection of information
is necessary for the proper performance
of the functions of the agency, including
whether the information will have
practical utility; (2) the accuracy of the
agency’s estimate of the burden of the
proposed collection of information
including the validity of the
methodology and assumptions used; (3)
ways to enhance the quality, utility, and
clarity of the information to be
collected; and (4) ways to minimize the
burden of the collection of information
E:\FR\FM\05DEP1.SGM
05DEP1
87492
Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 / Proposed Rules
on those who are to respond, including
the use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology.
Comments should reference OMB No.
0581–0143 and ‘‘Export Fruit Acts.’’
Comments should be sent to USDA in
care of the Docket Clerk at the
previously mentioned address. All
comments received will be available for
public inspection during regular
business hours at the same address.
AMS is committed to compliance
with the Government Paperwork
Elimination Act, which requires
government agencies in general to
provide the public with the option of
submitting information or transacting
business electronically to the maximum
extent possible.
List of Subjects
7 CFR Part 33
Apples, Exports, Pears, Reporting and
recordkeeping requirements.
7 CFR Part 35
Administrative practice and
procedure, Exports, Grapes, Plums,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, AMS proposes to amend 7
CFR parts 33 and 35 as follows:
PART 33—REGULATIONS ISSUED
UNDER AUTHORITY OF THE EXPORT
APPLE ACT
1. The authority citation for 7 CFR
part 33 continues to read as follows:
■
Authority: 48 Stat. 124; 7 U.S.C. 581–590.
■
2. Add new § 33.9 to read as follows:
§ 33.9
Shipper.
Shipper means any person who ships
or offers for shipment apples to any
foreign destination.
■ 3. Revise § 33.11 to read as follows:
sradovich on DSK3GMQ082PROD with PROPOSALS
§ 33.11
Inspection and certification.
(a) Inspection and certification. Each
person shipping, or offering for
shipment, apples to any foreign
destination shall cause them to be
inspected by the Federal or FederalState Inspection Service in accordance
with regulations governing the
inspection and certification of fresh
fruits, and vegetables and other
products (Part 51 of this title) and
certified as meeting the requirements of
the Act and this part. No carrier shall
transport apples, or receive apples for
transportation to any foreign destination
unless they have been so inspected and
certified. Inspection and certification
VerDate Sep<11>2014
17:33 Dec 02, 2016
Jkt 241001
may be obtained at any time prior to
exportation of the apples. Such a
Federal or Federal-State certificate shall
be designated as an ‘‘Export Form
Certificate’’ and shall include the
following statement: ‘‘Meets
requirements of Export Apple Act.’’
(b) Export Form Certificate number.
The shipper (or shipper’s authorized
agent) shall enter the Export Form
Certificate number in the Automated
Export System (AES), pursuant to the
Electronic Export Information (EEI)
filing requirements under the Foreign
Trade Regulations (15 CFR part 30) and
Export Clearance Requirements (15 CFR
part 758), except the exemption code
BULK CONTRS shall be entered for
apples in bulk containers destined for
Canada.
(c) Delivery and filing of Export Form
Certificate. The shipper shall deliver a
copy of the Export Form Certificate or
Memorandum of Inspection to the
export carrier. Whenever apples are
inspected and certified at any point
other than the port of exportation, the
shipper shall deliver a copy of the
Export Form Certificate or
Memorandum of Inspection to the agent
of the first carrier that thereafter
transports such apples, and such agent
shall deliver the copy to the proper
official of the carrier on which the
apples, covered by the certificate or
memorandum, are to be exported. The
shipper shall also maintain an
electronic or paper copy of the Export
Form Certificate for a period of not less
than three (3) years after date of export
and shall submit, upon request from
USDA, an electronic or paper copy of
the Export Form Certificate to USDA,
AMS, Specialty Crops Program,
Marketing Order and Agreement
Division, 1400 Independence Avenue
SW., Stop 0237, Washington, DC 20250–
0237; telephone (202) 720–4607; fax
(202) 720–5698; or email
AMSCompliance@ams.usda.gov.
(d) Spray residue tolerance. If the
inspector has reason to believe that
samples of a lot of apples have been
obtained for a determination as to
compliance with tolerance for spray
residue, established under the Federal
Food, Drug and Cosmetic Act, as
amended (52 Stat. 1040; 21 U.S.C. 301
et seq.), he or she shall not issue a
certificate on the lot unless it complies
with such tolerances.
PART 35—EXPORT GRAPES AND
PLUMS
4. The authority citation for 7 CFR
part 35 continues to read as follows:
■
Authority: 74 Stat. 734; 75 Stat. 220; 7
U.S.C. 591–599.
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
■
5. Add § 35.9 to read as follows:
§ 35.9
Shipper.
Shipper means any person who ships
or offers for shipment any variety of
vinifera species table grapes to any
foreign destination.
■ 6. Revise § 35.12 to read as follows:
§ 35.12
Inspection and certification.
(a) Inspection. Each person shipping
or offering for shipment any variety of
vinifera species table grapes to any
foreign destination other than
destinations in Canada or Mexico shall
cause them to be inspected within 14
days prior to date of export by the
Federal or Federal-State Inspection
Service in accordance with regulations
governing the inspection and
certification of fresh fruits, vegetables,
and other products (part 51 of this title)
and certified as meeting the
requirements of the Act and this part.
(b) Certification. The Federal or
Federal-State certificate shall be
designated as an ‘‘Export Form
Certificate’’ and shall include one of the
following statements as applicable:
(1) For any variety meeting
specifications of paragraph (a) of § 35.11
‘‘Meets requirements of Export Grape
and Plum Act’’ or (2) For any variety
meeting specifications of paragraph (b)
of § 35.11 ‘‘Meets requirements of
Export Grape and Plum Act except for
export to destinations in Europe,
Greenland, or Japan.’’ No carrier shall
transport or receive for transportation
any such variety to any foreign
destination other than Canada or
Mexico unless a copy of the Export
Form Certificate issued thereon showing
that the grapes meet requirements for
the applicable export destination is
surrendered to such carrier when such
variety is received.
(c) Delivery and filing of Export Form
Certificate. The shipper shall deliver a
copy of the Export Form Certificate
covering the shipment to the export
carrier. Whenever grapes are inspected
and certified at any point other than
port of exportation, the shipper shall
deliver a copy of the Export Form
Certificate to the agent of the first carrier
that thereafter transports such grapes,
and such agent shall deliver such copy
to the proper official of the carrier on
which the grapes are to be exported. The
shipper shall also maintain an
electronic or paper copy of the Export
Form Certificate for a period of not less
than three (3) years after date of export
and shall submit, upon request from
USDA, an electronic or paper copy of
the Export Form Certificate to USDA,
AMS, Specialty Crops Program,
Marketing Order and Agreement
E:\FR\FM\05DEP1.SGM
05DEP1
Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 / Proposed Rules
Division, 1400 Independence Avenue
SW., Stop 0237, Washington, DC 20250–
0237; telephone (202) 720–4607; fax
(202) 720–5698; or email
AMSCompliance@ams.usda.gov.
(d) Export Form Certificate number.
The shipper (or shipper’s authorized
agent) shall enter the Export Form
Certificate number in the U.S. Census
Bureau’s Automated Export System
(AES), pursuant to the Electronic Export
Information (EEI) filing requirements
under the Foreign Trade Regulations (15
CFR part 30) and Export Clearance
Requirements (15 CFR part 758).
(e) Spray residue tolerance. If the
inspector has reason to believe that
samples of a lot of any variety of
vinifera species table grapes have been
obtained for a determination as to
compliance with tolerance for spray
residue, established under the Federal
Food, Drug and Cosmetic Act, as
amended (52 Stat. 1040; 21 U.S.C. 301
et seq.), he or she shall not issue a
certificate on the lot unless it complies
with such tolerances.
Dated: November 29, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2016–29017 Filed 12–2–16; 8:45 am]
BILLING CODE P
DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket No. EERE–2014–BT–STD–0031]
RIN 1904–AD20
Energy Conservation Program: Energy
Conservation Standards for
Residential Furnaces
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Reopening of public comment
period.
AGENCY:
On September 23, 2016, the
U.S. Department of Energy (DOE)
published a supplemental notice of
proposed rulemaking (SNOPR) and
announcement of public meeting
pertaining to proposed energy
conservation standards for residential
furnaces in the Federal Register. The
notice provided an opportunity for
submitting written comments, data, and
information by November 22, 2016. This
document announces a reopening of the
public comment period for submitting
comments and data on the SNOPR or
any other aspect of the rulemaking for
residential furnaces. The comment
sradovich on DSK3GMQ082PROD with PROPOSALS
SUMMARY:
VerDate Sep<11>2014
17:33 Dec 02, 2016
Jkt 241001
period is reopened until January 6,
2017.
DATES: The comment period for the
supplemental notice of proposed
rulemaking published on September 23,
2016 (81 FR 65719) is reopened. DOE
will accept comments, data, and
information regarding this rulemaking
received no later than January 6, 2017.
ADDRESSES: Instructions: Any comments
submitted must identify the SNOPR on
Energy Conservation Standards for
Residential Furnaces, and provide
docket number EERE–2014–BT–STD–
0031 and/or regulatory information
number (RIN) 1904–AD20. Comments
may be submitted using any of the
following methods:
(1) Federal eRulemaking Portal:
www.regulations.gov. Follow the
instructions for submitting comments.
(2) Email:
ResFurnaces2014STD0031@ee.doe.gov.
Include the docket number and/or RIN
in the subject line of the message.
Submit electronic comments in
WordPerfect, Microsoft Word, PDF, or
ASCII file format, and avoid the use of
special characters or any form of
encryption.
(3) Postal Mail: Appliance and
Equipment Standards Program, U.S.
Department of Energy, Building
Technologies Office, Mailstop EE–5B,
1000 Independence Avenue SW.,
Washington, DC 20585–0121. If
possible, please submit all items on a
compact disc (CD), in which case it is
not necessary to include printed copies.
(4) Hand Delivery/Courier: Appliance
and Equipment Standards Program, U.S.
Department of Energy, Building
Technologies Office, 950 L’Enfant Plaza
SW., 6th Floor, Washington, DC 20024.
Telephone: (202) 586–6636. If possible,
please submit all items on a CD, in
which case it is not necessary to include
printed copies.
Docket: The docket, which includes
Federal Register notices, public meeting
attendee lists and transcripts,
comments, and other supporting
documents/materials, is available for
review at www.regulations.gov. All
documents in the docket are listed in
the www.regulations.gov index.
However, some documents listed in the
index may not be publicly available,
such as those containing information
that is exempt from public disclosure.
The docket Web page can be found at:
https://www.regulations.gov/
#!docketDetail;D=EERE-2014-BT-STD0031. The docket Web page contains
simple instructions on how to access all
documents, including public comments,
in the docket.
FOR FURTHER INFORMATION CONTACT:
PO 00000
Frm 00008
Fmt 4702
Sfmt 4702
87493
Mr. John Cymbalsky, U.S. Department
of Energy, Office of Energy Efficiency
and Renewable Energy, Building
Technologies Program, EE–2J, 1000
Independence Avenue SW.,
Washington, DC 20585–0121.
Telephone: (202) 287–1692. Email:
residential_furnaces_and_boilers@
ee.doe.gov.
Ms. Johanna Jochum, U.S. Department
of Energy, Office of the General Counsel,
GC–33, 1000 Independence Avenue
SW., Washington, DC 20585–0121.
Telephone: (202) 287–6307. Email:
Johanna.Jochum@hq.doe.gov.
SUPPLEMENTARY INFORMATION: On
September 2, 2016, DOE issued a prepublication supplemental notice of
proposed rulemaking (September 2016
SNOPR) pertaining to proposed energy
conservation standards for residential
furnaces on the Appliance and
Equipment Standards Web page https://
energy.gov/eere/buildings/downloads/
issuance-2016-09-02-energyconservation-program-energyconservation. DOE also posted on the
same Web page its analytical tools and
supplementary documentation for
residential furnaces. In that prepublication notice, DOE provided for a
30-day comment period. Following the
issuance of the pre-publication notice,
Spire Inc., the Air-Conditioning,
Heating, and Refrigeration Institute
(AHRI), and the American Gas
Association and American Public Gas
Association (AGA/APGA, jointly)
submitted requests that DOE extend the
30-day comment period by 60
additional days. (Spire, No. 219 at p. 1;
AGA/APGA, No. 220 at pp. 1–3; AHRI,
No. 221 at p. 1) These commenters
requested additional time to review
DOE’s analytical tools and
supplementary materials supporting the
September 2016 SNOPR. To
accommodate those requests, DOE
extended the comment period by 30
days when it published in the Federal
Register the September 23, 2016
SNOPR, providing for a comment period
of 60 days ending November 22, 2016.
81 FR 65719. During the SNOPR public
meeting on October 17, 2016, DOE
noted that between the date of issuance
of the pre-publication notice (along with
analytical tools and documentation) and
the end of the comment period on
November 22, 2016, interested parties
would have had 81 days to review the
notice, analytical tools and
supplementary documentation. (DOE,
No. 243 at p. 213)
Following publication in the Federal
Register of the September 2016 SNOPR
on September 23, 2016, commenters
again requested that DOE extend the
E:\FR\FM\05DEP1.SGM
05DEP1
]]>Agencies
[Federal Register Volume 81, Number 233 (Monday, December 5, 2016)]
[Proposed Rules]
[Pages 87486-87493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29017]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 /
Proposed Rules
[[Page 87486]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 33 and 35
[Doc. No. AMS-FV-14-0099; FV15-33/35-1 PR]
Regulations Issued Under Authority of the Export Apple Act and
Export Grapes and Plums; Changes to Export Reporting Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would change the reporting of export
certificate information under regulations issued pursuant to the Export
Apple Act (7 CFR part 33) and the Export Grape and Plum Act (7 CFR part
35). This change would require shippers of apples and grapes exported
from the United States to electronically enter an Export Form
Certificate number or a USDA-defined exemption code into the Automated
Export System (AES). This rule would also define ``shipper,'' shift the
current file retention requirement from carriers to shippers, and
require shippers to provide, upon request, copies of the certificates
to the Agricultural Marketing Service (AMS). These changes would enable
AMS to track exported apple and grape shipments to ensure that exports
meet inspection and certification requirements. This action is also
required to support the International Trade Data System (ITDS), a key
White House economic initiative that will automate the filing of export
and import information by the trade. This proposal would also remove
obsolete regulations and make clarifying changes. It also announces
AMS' intention to request revision to a currently approved information
collection for exported apples and grapes.
DATES: Comments must be received by January 4, 2017.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments must be sent to the Docket Clerk,
Marketing Order and Agreement Division, Specialty Crops Program, AMS,
USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or Internet: https://www.regulations.gov. All
comments should reference the document number and the date and page
number of this issue of the Federal Register and will be made available
for public inspection in the Office of the Docket Clerk during regular
business hours, or can be viewed at: https://www.regulations.gov. All
comments submitted in response to this proposal will be included in the
record and will be made available to the public. Please be advised that
the identity of the individuals or entities submitting the comments
will be made public on the Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Shannon Ramirez, Compliance and
Enforcement Specialist, or Vincent Fusaro, Compliance and Enforcement
Branch Chief, Marketing Order and Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (202) 720-2491, Fax: (202) 720-8938, or
Email: Shannon.Ramirez@ams.usda.gov or VincentJ.Fusaro@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, Marketing Order and
Agreement Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237;
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email:
Antoinette.Carter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This proposed rule is issued under the
Export Apple Act (7 U.S.C. 581-590) and the Export Grape and Plum Act
(7 U.S.C. 591-599) (together hereinafter referred to as the ``Export
Fruit Acts''). The Export Fruit Acts promote foreign trade of U.S.-
grown fruit by authorizing the implementation of regulations related to
quality, container markings, and inspection requirements. These
regulations are contained in 7 CFR part 33 (Regulations Issued under
the Export Apple Act) and 7 CFR part 35 (Export Grapes and Plums).
Executive Order 12866 and Executive Order 13563
Executive Orders 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 equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
This action has been designated as a ``non-significant regulatory
action'' under section 3(f) of Executive Order 12866. Accordingly, the
Office of Management and Budget (OMB) has waived the review process.
Executive Order 13175
This action 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 would not
have substantial and direct effects on Tribal governments and would not
have significant Tribal implications.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This proposed rule is not intended to have
retroactive effect and shall not abrogate nor nullify any other
regulations, whether State or Federal, dealing with the same subjects.
It is intended that all such regulations shall remain in full force and
effect except in so far as they are inconsistent herewith or repugnant
hereto (7 U.S.C. 587; 7 U.S.C. 597).
The Export Fruit Acts provide for administrative proceedings that
must be exhausted before parties may file suit in court. Pursuant to 7
U.S.C. 586 and sections 33.13 and 33.14 of the regulations (for apples)
and 7 U.S.C. 596 and sections 35.14 and 35.15 of the regulations (for
grapes), any person subject to the Export Fruit Acts may file with USDA
a request for hearing, along with a written responsive answer to
alleged violations of the provisions of the Export Fruit Acts and
regulations, no later than 10 days after service of notice of alleged
violations. After opportunity for hearing, the Secretary is
[[Page 87487]]
authorized to refuse the issuance of certificates under the Export
Fruit Acts for a period not exceeding 90 days.
This proposed rule would change the reporting of export certificate
information under regulations issued pursuant to both the Export Apple
Act and the Export Grape and Plum Act (7 CFR part 33, ``Regulations
Issued Under Authority of the Export Apple Act,'' and 7 CFR part 35,
``Export Grapes and Plums,'' respectively). Shippers of apples and
grapes exported from the United States subject to inspection would be
required to enter the certificate number from inspection certificates
(i.e., Export Form Certificates) into AES. For apples shipped to Canada
in bulk containers, which are exempt from inspection requirements,
shippers would be required to enter a special USDA-defined exemption
code in lieu of an Export Form Certificate number. Shippers would also
be required to maintain paper or electronic copies of the certificates
and to provide copies to AMS upon request. AMS is responsible for
monitoring apple and grape export shipments, and these proposed
regulatory changes would help ensure that these shipments comply with
inspection and certification requirements.
This proposed rule would also define ``shipper'' and would remove
the requirement that carriers of exported apples and grapes retain
certificates on file (because the requirement to retain the
certificates would shift to shippers of exported apples and grapes). It
would also remove regulations that are no longer applicable to grape
exports and add structure and language to clarify the regulations.
Plums are not currently regulated under the Export Grape and Plum
Act; therefore, this change would not impact shipments of plums
exported from the United States. If plums exported from the United
States are regulated in the future under the Export Grape and Plum Act,
the reporting of export certificate information similar to what is
being proposed herein for exported grapes and apples would be proposed.
Sections 33.11(a) and 35.12(b) of the regulations issued under the
Export Fruit Acts for apples and grapes, respectively, specify that,
prior to export, the fruit must be inspected by the Federal or Federal-
State Inspection Service (unless the fruit is otherwise exempted from
inspection under the Export Fruit Acts). These sections further specify
that Export Form Certificates must be issued by the inspection service
and must contain a statement indicating the fruit meets the
requirements of the Export Fruit Acts. Additionally, these sections
currently require that shippers provide a copy of the certificates to
the export carrier or, in those instances where the fruit is inspected
and certified at any location other than the port of exportation, to
the agent of the first carrier who transports the fruit to port for
exportation. These two sections also currently contain requirements
related to the retention of certificates by export carriers and spray
residue tolerance.
Section 33.12 of the export apple regulations specifies those
apples that are not subject to regulation, including apples shipped to
Canada in bulk containers (Sec. 33.12(d)), which are containers that
hold a quantity of apples weighing more than 100 pounds.
Sections 33.2 and 33.4 of the export apple regulations and
Sec. Sec. 35.2 and 35.4 of the export grape regulations define
``person'' and ``carrier,'' respectively. The term ``shipper'' is used
in parts 33 and 35 but is not currently defined in either of those
regulations.
Filing Export Information in the Automated Export System (AES)
The Foreign Relations Authorization Act (FRAA) (Pub. L. 107-228)
authorizes regulations requiring that all persons who are required to
file export information under Chapter 9 of Title 13 of the U.S. Code
(Collection and Publication of Foreign Commerce and Trade Statistics)
file such information through the Automated Export System (AES) for all
shipments where a paper Shipper's Export Declaration was previously
required. As such, shippers of most U.S.-grown apples and grapes are
required to electronically file export shipment information in AES.
AES is a joint venture between U.S. Customs and Border Protection
(CBP) and the U.S. Census Bureau (Census) that was implemented in
phases, starting in 1995. It is a nationwide system, available at all
U.S. ports, that serves as a central point for the electronic
collection of export data that are used by several different Federal
government agencies including Census and CBP. Census regulations issued
under the authority of the FRAA and related to AES include the Foreign
Trade Regulations (15 CFR part 30) and the Export Clearance
Requirements (15 CFR part 758).
AMS is responsible for enforcing the regulations under the Export
Fruit Acts, including verifying that exported apples and grapes that
are subject to regulation are inspected and certified as meeting
quality requirements. However, the Export Fruit Acts regulations do not
currently require that shippers provide AMS with information about
inspected and certified fruit.
AMS has determined that access to the Census Bureau's AES data
would allow AMS to monitor compliance with and enforce the regulations
issued under the Export Fruit Acts. As a result, AMS and Census have
entered into a Memorandum of Understanding that will give AMS access to
certain specific data in the AES related to apple and grape exports,
including an Export Form Certificate number that is associated with
each lot of inspected and certified fruit or, in lieu of a certificate
number, a USDA-defined exemption code (BULK CONTRS) for apples shipped
to Canada in bulk containers.
For those apples and grapes subject to inspection, information
about each inspected lot of apples or grapes is noted on an Export Form
Certificate (FV-205 or FV-207 paper form; FV-205e and FV-207e
electronic form) that is completed by an inspector. In addition to
stating whether the lot meets the export requirements, the certificate
also contains information about the date and place of inspection; the
name of the applicant; and the quantity, variety, and identification
marks of the lot. The certificate is provided to the shipper and is
identified with a unique certificate number. The inspection service
that inspects and certifies the export shipment will also
electronically maintain the certificate information.
AMS believes that the most effective way to verify that apple and
grape exports meet export inspection and certification requirements
would be to have shippers enter the unique Export Form Certificate
numbers into the AES. AMS would then verify the validity of a
certificate number by cross-referencing it and the associated shipment
information with inspection data (e.g., certificate number, variety,
quantity) that AMS would receive from its Specialty Crops Inspection
(SCI) Division.
Some exported apples and grapes are exempt from the inspection
requirements of the Export Fruit Acts regulations pursuant to Sec.
33.12 for apples and Sec. Sec. 35.12 and 35.13 for grapes. In most
instances, information about a shipment (e.g., the weight and
destination of the shipment) that is entered by a shipper (or shipper's
agent) into AES will determine if the shipper is required to also enter
an Export Form Certificate number in AES. As an example, a shipment of
apples weighing less than 5,000 pounds exported to any foreign country
is exempt from inspection requirements. If a shipment of apples
weighing 4,000 pounds is destined for Canada, this information
[[Page 87488]]
would be entered into AES. From that AES shipment information, the
system would determine that entry of an Export Form Certificate number
was not required because the shipment is exempt from inspection
requirements.
In comparison, if a shipment of apples weighing 6,000 pounds in
bulk containers is destined for Canada, the shipper's entry of that
shipment's weight and destination into AES would trigger the
requirement that the shipper enter an Export Form Certificate number
because the weight and destination of the shipment would meet the
parameters associated with mandatory inspection. However, apples in
bulk containers destined for Canada are exempt from inspection
requirements pursuant to Sec. 33.12(d). Currently, there is no
mechanism within AES that will recognize this exemption, so USDA has
created a special exemption code (BULK CONTRS) that shippers of these
apples would enter in the Export Form Certificate field in lieu of a
certificate number. Entry of this special USDA-defined exemption code
would enable shippers of apples in bulk containers destined for Canada
to complete the entry of information in AES.
In the future, AMS intends to work with Census to develop a new
harmonized tariff schedule (HTS) code specifically for exported apples
in bulk containers that are destined for Canada. Once this HTS code is
developed, shippers would enter that code into AES, which would signal
to AES that the shipment is exempt and would therefore not require
entry of the special exemption code. Once this new HTS code becomes
available, changes to the regulations would be proposed to remove the
requirement to enter the special BULK CONTRS exemption code.
As noted earlier, most shippers are accustomed to entering data
about exports into AES to create mandatory Electronic Export
Information (EEI) about each shipment. There are various methods for
filing EEI into AES, such as through AES-certified software from a
third-party vendor or through AESDirect, a free Internet application
supported by Census. The EEI contains basic information about an export
including but not limited to the names and addresses of the parties to
a transaction; the Harmonized Tariff Schedule number; and the
description, quantity, and value of the exported items. In 2014, the
Census Bureau agreed to mandate entry of the Export Form Certificate
number (or the exemption code for apples shipped in bulk containers to
Canada) by shippers in the AES for AMS' tracking and enforcement
purposes. Shippers would be required to electronically enter Export
Form Certificate numbers or the exemption code for bulk container
apples destined for Canada (BULK CONTRS) in AES. To require that
shippers enter the Export Form Certificate number or, when applicable,
the BULK CONTRS exemption code, the Export Fruit Acts regulations would
be revised to add a new Sec. 33.11(b) for apples and a new Sec.
35.12(d) for grapes.
This proposed action would also require a shipper to maintain and
submit, upon request, a paper or electronic copy of the Export Form
Certificate to AMS. As previously noted, AMS would compare EEI from AES
against inspection information from its SCI Division. However, there
could be instances when AMS might need further verification of
inspection and would, therefore, need to request a copy of the Export
Form Certificate from the shipper. For example, if a certificate number
in AES does not match any certificate numbers in SCI-provided data, AMS
might require that the shipper provide a copy of an Export Form
Certificate to AMS so that the information on that certificate could be
compared against the EEI from AES. These proposed changes would give
AMS the ability to track exports of apples and grapes to confirm that
quality requirements are being met. Accordingly, this requirement would
be added to the Export Fruit Acts regulations in Sec. 33.11(c) for
apples and Sec. 35.12(c) for grapes.
In conjunction with these proposed new recordkeeping requirements,
this proposed action would also remove the requirement in Sec.
33.11(a) for apples and Sec. 35.12(c) for grapes that carriers of
exported fruit retain a copy of the Export Form Certificate. This
requirement would no longer be necessary for AMS compliance monitoring
because, as proposed herein, shippers would be required to retain a
copy of the certificate (and upon request, the shipper would be
required to provide such copy, electronically or in paper form, to
AMS).
Streamlining the Export Process Under the International Trade Data
System (ITDS)
Changing the Export Fruit Acts regulations to provide for the
electronic entry of an Export Form Certificate number supports the
International Trade Data System (ITDS), a key White House economic
initiative that has been under development for over ten years and is
mandated for completion by December 31, 2016 (pursuant to Executive
Order 13659, Streamlining the Export/Import Process for America's
Businesses, signed by President Obama on February 19, 2014; 79 FR
10657). Under ITDS, the export and import trade will file shipment data
through an electronic ``single window,'' instead of completing multiple
paper-based forms to report the same information to different
government agencies. ITDS will greatly reduce the burden on America's
export and import trade while still providing information necessary for
the United States to ensure compliance with its laws.
By the end of 2016, the ITDS ``single window'' will be presented to
the export and import trade through CBP's Automated Commercial
Environment (ACE) platform. ACE will be the primary system through
which the global trading community will file information about imports
and exports so that admissibility into the U.S. may be determined and
government agencies may monitor compliance.
In March 2014, AES functionality was incorporated into ACE, and
export transactions are now processed in ACE. The migration of AES
functionality to ACE was, for the most part, transparent to filers of
export shipment data. This system migration supports the ITDS ``single
window'' because, as noted earlier, ACE will be the system primarily
used by the trade community to file import and export shipment data,
with the functionality of AES embedded within that system.
Prior to the implementation of the ITDS ``single window,'' CBP is
requiring that the 47 partnering government agencies (PGAs) that are
participating in the ITDS project, including AMS, ensure that agency
regulations provide for the electronic entry of export and/or import
information.
AMS' Marketing Order and Agreement Division (MOAD) is currently
developing the functionality of a new automated system called the
Compliance and Enforcement Management System (CEMS) that will store and
analyze data in support of ITDS. CEMS will receive export data from the
ACE system that will be utilized in monitoring compliance with
regulations under the Export Fruit Acts.
The revised reporting requirements for exported apples and grapes
will meet CBP's requirements for ITDS/ACE by providing for the
electronic entry of the Export Form Certificate number (or the special
BULK CONTRS exemption code, when applicable).
Miscellaneous Proposed Changes
In addition to the previously described changes, this action would
make changes to update and clarify the regulations. First, a definition
of
[[Page 87489]]
``shipper'' would be added to the regulations in Sec. 33.9 for apples
and Sec. 35.9 for grapes. This change is intended to provide clarity
about a commonly used term.
Additionally, gender-specific language would be changed from ``he''
to ``he or she'' in new Sec. 33.11(d) and Sec. 35.12(e).
In addition, existing Sec. 35.12(d) would be removed because it is
no longer needed. The requirements in Sec. 35.12(d) were enacted to
fulfill provision 2 of the Export Grape and Plum Act (7 U.S.C. 592),
which provides that grapes could be shipped in fulfillment of contracts
that were entered into prior to the effective date of the Export Grape
and Plum Act regulations, as long as those grapes were shipped within 2
months of the date of the contracts. The intent of Sec. 35.12(d) was
to provide exporters with an opportunity to meet prior contractual
obligations and comply with the newly enacted regulations without
meeting additional requirements. Because the need for Sec. 35.12(d) no
longer exists, this section would be removed.
Finally, in addition to new paragraphs being added to Sec. Sec.
33.11 and 33.12, existing Sec. Sec. 33.11(a) and 35.12(b)(2) would be
reorganized into multiple paragraphs in an effort to make the
regulations easier to read, understand, and follow. Adding additional
requirements to already lengthy paragraphs might cause confusion and
misunderstanding; therefore, reorganization was deemed to be
appropriate. To further improve the overall readability of Sec. Sec.
33.11 and 35.12, headings would also be added at the beginning of each
paragraph to help the reader quickly identify the paragraph's content.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this action on small entities.
Accordingly, AMS has prepared this initial regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Small agricultural
service firms, including shippers and carriers, are defined by the
Small Business Administration (SBA) as those having annual receipts of
less than $7,500,000, and small agricultural producers are defined as
those having annual receipts of less than $750,000 (13 CFR 121.201).
This proposed rule would change the reporting of export certificate
information under regulations issued pursuant to the Export Apple Act
and the Export Grape and Plum Act (7 CFR part 33, ``Regulations Issued
Under Authority of the Export Apple Act,'' and 7 CFR part 35, ``Export
Grapes and Plums,'' respectively) by requiring shippers of apples and
grapes exported from the United States to enter into AES the
certificate numbers of Export Form Certificates for such exports (or,
in lieu of certificate numbers, the exemption code BULK CONTRS for
apples in bulk bins destined for Canada). It would also require
shippers to provide, upon request, paper or electronic copies of the
certificates to AMS. It would also remove the requirement that carriers
retain copies of the certificates. Plums are not currently regulated
under 7 CFR part 35, so this change has no impact on exporters or
carriers of plums.
Requiring shippers of apples and grapes to electronically enter an
export certificate number (or the BULK CONTRS exemption code) would
have very little impact on them. The certificate number is currently
provided to shippers on the certificate they receive from the Federal
or Federal-State Inspection Service, and AMS is providing the special
BULK CONTRS exemption code to shippers for those instances when it is
required. Also, shippers already use AES to enter Electronic Export
Information (EEI) about shipments, currently approved for collection
under OMB No. 0607-0152, and entry of the certificate number or
exemption code would be part of that EEI process.
Finally, shippers currently provide copies of Export Form
Certificates to other parties, such as carriers, as required by the
Export Fruit Acts regulations. Therefore, requiring shippers to provide
AMS with a copy of an Export Form Certificate (upon request, when other
methods of compliance verification are not available to AMS) would be a
usual and customary practice. This proposed action would also require
that shippers maintain certificates (electronic or paper) on file for a
minimum of three (3) years in the event AMS would require that a
shipper provide proof of inspection for compliance purposes.
Maintaining records, such as export certificates, is a standard
business practice and, therefore, should not have a major economic
impact on shippers.
These proposed changes would create a minimal burden on shippers
while providing AMS with the ability to properly monitor export
shipments for compliance with the regulations.
Removing the requirement that carriers of exported apples and
grapes retain copies of inspection certificates (Export Form
Certificates) would reduce the recordkeeping burden on those carriers.
According to apple industry statistics, there are approximately 60
shippers of exported apples subject to regulation under the Export
Apple Act. USDA's Foreign Agricultural Service (FAS) data estimates the
value of fresh apple exports subject to regulation in 2015 was
approximately $1.0 billion. Therefore, the estimated receipts for
shippers of exported apples is well over $7,500,000.
According to grape industry information, there are approximately 14
shippers of exported grapes subject to regulation under the Export
Grape and Plum Act. Data provided by FAS indicate that the estimated
value of grape exports in 2015 that were subject to these regulations
was $512 million. Therefore, the estimated receipts for shippers of
exported grapes is well over $7,500,000.
USDA estimates there are approximately 15 carriers of exported
apples and 5 carriers of exported grapes that would be impacted by the
lessening of regulatory requirements proposed by this action. USDA does
not have access to data about the business sizes of these carriers.
Based on the above information, it may be concluded that a majority
of shippers of exported apples and grapes would not be classified as
small businesses. USDA is unable to make a determination about whether
carriers of exported apples and grapes could be classified as small
businesses.
This proposed rule is issued under the authority of the Export
Apple Act (7 U.S.C. 581-590), and the Export Grape and Plum Act (7
U.S.C. 591-599). This proposed rule proposes changing ``Regulations
Issued under Authority of the Export Apple Act'' (7 CFR part 33) and
``Export Grapes and Plums'' (7 CFR part 35). This action would require
shippers of apples and grapes exported from the United States to enter
the Export Form Certificate number for those exports into the U.S.
Census Bureau's Automated Export System (AES) (or, in lieu of a
certificate number, to enter exemption code BULK CONTRS for apples in
bulk containers destined for Canada). It would also require shippers to
maintain and provide, upon request, a paper or electronic copy of the
Export Form Certificate to AMS and would remove the requirement that
carriers retain copies of the certificates. These changes to the
reporting requirements would allow AMS to
[[Page 87490]]
verify that shipments of exported apples and grapes are in compliance
with the quality requirement regulations.
There are estimated to be 60 shippers of U.S.-grown apples, 14
shippers of U.S.-grown grapes, and 20 carriers of these apples and
grapes subject to the Export Fruit Acts regulations. The shippers
currently receive copies of Export Form Certificates from the Federal
or Federal-State Inspection Service upon completion of an inspection of
apples or grapes destined for export. The regulations currently require
that the shippers provide copies of the certificates to the export
carriers who transport the fruit, and these carriers are, in turn,
required to keep these certificates on file for at least three years
following the date of export. The burden of recordkeeping for the
maintenance of these certificates is currently approved by the Office
of Management and Budget (OMB) under OMB No. 0581-0143, ``Export Fruit
Acts'' (7 U.S.C. 581-590 and 7 U.S.C. 591-599).
Regarding alternatives to this proposed action, AMS considered
making no changes to the Export Fruit Acts regulations. However, AMS
determined that having the Export Form Certificate number for apples
and grapes exported from the United States is necessary for monitoring
compliance of these shipments with the regulations. AMS also considered
not requiring shippers of apples in bulk containers destined for Canada
to enter a special USDA-defined exemption code in lieu of a certificate
number. However, until a new HTS code is created for these exempt
apples, shipments of bulk containers of apples destined for Canada will
require entry of data in the AES export certificate number field;
therefore, the BULK CONTRS exemption code would enable shippers of
these apples to complete the electronic entry of export data in AES.
AMS also considered requiring shippers to provide AMS with a paper
or electronic copy of all Export Form Certificates (rather than just
upon request) but determined that entering the certificate number in
AES would be less burdensome for shippers. AMS also determined that
this change would meet CBP's requirement that all government agencies
who are partnering with CBP on the ITDS project (including AMS) update
their regulations to provide for the electronic entry of export and
import shipment data.
AMS also considered not requesting a shipper to submit a copy of an
Export Form Certificate upon request; however, there may be some unique
cases where additional verification of compliance would be required if
AES or SCI data were not sufficient.
Finally, AMS considered keeping the requirement that carriers
maintain copies of the Export Form Certificates on file; however, AMS
determined that the other changes proposed herein would make this
requirement redundant and burdensome. Therefore, alternatives to this
proposed rule were rejected.
This proposed rule would revise the information collection
currently approved under OMB No. 0581-0143 by increasing the existing
recordkeeping burden on shippers and reducing the existing
recordkeeping burden on carriers. These changes in burden will be
further explained in the Paperwork Reduction Act section below.
AMS is responsible for enforcing the regulations of the Export
Fruit Acts, including verification that export shipments of apples and
grapes meet quality requirements. Currently, the regulations do not
require shippers of these export fruits to provide AMS with proof of
inspection and certification compliance. Without this proposed change
to the regulations, AMS will lack the ability to effectively meet its
duty of enforcement.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this proposed rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Antoinette Carter at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
A 30-day comment period is provided to allow interested persons to
respond to this proposal. Thirty days is deemed appropriate because (1)
the export industry is fully aware of ITDS and its goal to streamline
and automate paper-based processes and has attended annual ITDS Trade
Support Network plenary sessions conducted by the U.S. government over
the past few years, and (2) CPB is requiring the timely update of
import and export regulations to meet the ITDS electronic data
submission requirement. All written comments timely received will be
considered before a final determination is made on this matter.
All written comments timely received will be considered before a
final determination is made on this matter.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), AMS announces its intention to submit a revision to a
currently approved information collection.
Title: Export Fruit Acts, 7 U.S.C. 581-590 and 7 U.S.C. 591-599.
OMB Number: 0581-0143.
Type of Request: Revision.
Abstract: The information collection requirements contained in this
request are necessary for the administration of proposed amendments to
regulations authorized by the Export Apple Act and the Export Grape and
Plum Act (``Export Fruit Acts''). These regulations are found at 7 CFR
part 33, ``Regulations Issued under Authority of the Export Apple
Act,'' and 7 CFR part 35, ``Export Grape and Plum Act.''
Under the Export Fruit Acts regulations, unless otherwise exempted
by those Acts, each shipment of fresh apples and grapes must be
inspected by the Federal or Federal-State Inspection Service to ensure
the fruit meets quality and other requirements effective under the
Acts. This inspection and certification must occur prior to export. If
the inspection service determines that a lot of apples or grapes
intended for export meets the applicable quality requirements, the
inspector completes an Export Form Certificate (currently, a paper FV-
207 or electronic FV-207e for non-Canadian export destinations and a
paper FV-205 or electronic FV-205e for exports to Canada), certifying
the fruit meets quality export requirements and providing shipping
identification information. This certificate is provided to the shipper
of the apples or grapes. In turn, the shipper must then provide a copy
of the certificate to the export carrier or, if the fruit is inspected
and certified somewhere other than the port of exportation, to the
agent of the first carrier who transports the fruit to port for
exportation. Currently, export carriers must keep these certificate
copies on file for at least three years after the date of export.
A shipper does not currently complete any form or file with USDA
any form or form-related information as part of this inspection and
certification process.
This proposed action would establish a requirement that shippers
enter the Export Form Certificate number assigned to each inspection
certificate into the Automated Export System (AES), an existing system
that facilitates
[[Page 87491]]
the electronic entry of information about export shipments. The
Marketing Order and Agreement Division (MOAD) would cross-reference
this certificate number and the associated export shipment information
(EEI) with inspection information provided electronically to MOAD by
SCI, thereby allowing MOAD to monitor compliance with the regulations.
The collection of AES data, which would include the Export Form
Certificate number or the special BULK CONTRS exemption code, is
approved under the Census Bureau's OMB No. 0607-0152; therefore, the
estimated burden associated with the electronic entry of the
certificate number will not be included in this USDA action.
In addition, this proposed action would require shippers to
maintain and provide, upon request, a paper or electronic copy of the
Export Form Certificate to MOAD when needed to monitor compliance with
regulations. MOAD anticipates that the majority of its compliance
monitoring would be accomplished by verifying the Export Form
Certificate number and other EEI entered by a shipper into AES against
inspection data provided by SCI; however, when needed, MOAD would
request copies of these certificates from shippers to help verify that
apple and grape exports meet export inspection and certification
requirements.
Finally, this proposed action would remove the requirement that
carriers retain a copy of the Export Form Certificate. As noted above,
this action would add a requirement that a shipper maintain and provide
to MOAD, upon request, a paper or electronic copy of the certificate.
MOAD would require a shipper to submit a copy of the certificate in
those cases when it would be needed to monitor compliance. Because
shippers would be responsible for maintaining and submitting the
certificates, upon request, MOAD would no longer require a carrier to
retain a copy of these certificates for its compliance purposes.
A shipper's failure to provide proof of compliance to MOAD could
result in a compliance investigation and legal action, if warranted.
The information collection under OMB No. 0581-0143 was last
approved in 2013. On June 14, 2016, AMS published a 60-day Notice in
the Federal Register announcing its intent to renew the collection (81
FR 38656-57), followed by a 30-day Notice in the Federal Register for
OMB review (81 FR 55428).
The currently approved collection authorizes the use of FV-207
(inspection certificate for export shipments bound for non-Canadian
destinations). In the 2016 renewal, AMS added the FV-205 form
(inspection certificate for Canadian-bound export shipments) that is
also used by SCI (the FV-205 was not previously approved under this or
any other OMB collection) and revised it to combine information from
the existing FV-205 and FV-207 forms. As a result, the existing FV-207
will be discontinued. In the 2016 renewal, AMS is also seeking OMB
approval to decrease the burden per certificate from the currently
approved 15 minutes to 5 minutes. This is sufficient time to complete
the related recordkeeping actions.
In the last renewal of the collection in 2013, it was reported that
a total of 102 respondents (68 shippers and 15 carriers for exported
apples, and 14 shippers and 5 carriers for exported grapes) use FV-207.
Current industry data indicate a slight reduction in the estimated
number of export apple shippers (60) but no changes in the estimated
number of export grape shippers (14) or carriers of export apples (15)
and grapes (5).
The 2013 renewal reported the number of certificates per year to be
approximately one response per respondent. This suggested that there
were only 102 certificates issued per year. This was reported in error,
and the 2016 renewal provides more accurate figures. USDA's Foreign
Agricultural Service estimates that, for the five-year period 2011-
2015, the average number of export apple and grape shipments requiring
inspection per year was 42,326 for apples and 10,462 for grapes, for a
total five-year average of 52,788 certificates per year that would need
to be maintained.
Based on this information and the proposed decreased burden per
certificate, the 2016 renewal estimates a total recordkeeping burden of
4,381 hours, an increase of 4,356 burden hours from the currently
approved 25 burden hours.
In addition, AMS estimates it may require shippers to submit
approximately 10 percent of these certificates (5,279) upon request.
The estimated burden for maintaining the revised FV-205 form
certificates as well as for submitting an estimated 10 percent of those
certificates to AMS, when requested, would be 5 minutes, which is less
than the current 15-minute recordkeeping burden. As a result of this
action, the information collection package would be revised to reflect
a total estimated recordkeeping burden of 4,837 hours. Since carriers
would no longer be required to keep copies of the certificates, the
current recordkeeping burden for carriers of apples and grapes would be
removed. AMS would submit a Justification for Change to OMB for
approval that encompasses these revisions.
As noted earlier, the FV-205 form is being revised to combine the
information contained on the existing FV-205 and FV-207 forms; this
change will result in discontinuance of the FV-207 form. The FV-205
update also adds instructions for the shipper regarding entry of the
Export Form Certificate number in AES for exported apples and grapes
and revises the text to include a burden statement and other minor
modifications, such as updating the program name in the form heading.
SCI will continue to use the existing electronic versions of the forms
(FV-205e and FV-207e) until SCI's Fresh Electronic Inspection Reporting
System (FEIRS) is modified to reflect the data contained in the revised
FV-205 form. FEIRS allows inspectors to electronically enter and report
inspection data; it is able to electronically transmit a certificate to
an email address or fax number, or the certificate may be printed. Once
the necessary FEIRS revisions are completed to enable entry of data to
the revised FV-205e form, the FV-207e form will be discontinued.
Estimate of Burden: The public reporting burden for this collection
of information is estimated to average 5 minutes per response for
retention of the certificate by shippers and also for submission, upon
request, of the certificate by shippers to MOAD.
Respondents: Shippers of apple exports and grape exports.
Estimated Number of Respondents: 74 (60 for apples and 14 for
grapes).
Estimated Total Annual Responses: 58,067 (42,326 certificates
maintained and 4,233 certificates potentially submitted to MOAD for
apples; and 10,462 certificates maintained and 1,046 certificates
potentially submitted to MOAD for grapes).
Estimated Number of Responses per Respondent: 775 for apples and
822 for grapes.
Estimated Total Annual Burden on Respondents: 4,837 hours.
Comments are invited on: (1) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden of the
proposed collection of information including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information
[[Page 87492]]
on those who are to respond, including the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology. Comments should
reference OMB No. 0581-0143 and ``Export Fruit Acts.'' Comments should
be sent to USDA in care of the Docket Clerk at the previously mentioned
address. All comments received will be available for public inspection
during regular business hours at the same address.
AMS is committed to compliance with the Government Paperwork
Elimination Act, which requires government agencies in general to
provide the public with the option of submitting information or
transacting business electronically to the maximum extent possible.
List of Subjects
7 CFR Part 33
Apples, Exports, Pears, Reporting and recordkeeping requirements.
7 CFR Part 35
Administrative practice and procedure, Exports, Grapes, Plums,
Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, AMS proposes to amend 7
CFR parts 33 and 35 as follows:
PART 33--REGULATIONS ISSUED UNDER AUTHORITY OF THE EXPORT APPLE ACT
0
1. The authority citation for 7 CFR part 33 continues to read as
follows:
Authority: 48 Stat. 124; 7 U.S.C. 581-590.
0
2. Add new Sec. 33.9 to read as follows:
Sec. 33.9 Shipper.
Shipper means any person who ships or offers for shipment apples to
any foreign destination.
0
3. Revise Sec. 33.11 to read as follows:
Sec. 33.11 Inspection and certification.
(a) Inspection and certification. Each person shipping, or offering
for shipment, apples to any foreign destination shall cause them to be
inspected by the Federal or Federal-State Inspection Service in
accordance with regulations governing the inspection and certification
of fresh fruits, and vegetables and other products (Part 51 of this
title) and certified as meeting the requirements of the Act and this
part. No carrier shall transport apples, or receive apples for
transportation to any foreign destination unless they have been so
inspected and certified. Inspection and certification may be obtained
at any time prior to exportation of the apples. Such a Federal or
Federal-State certificate shall be designated as an ``Export Form
Certificate'' and shall include the following statement: ``Meets
requirements of Export Apple Act.''
(b) Export Form Certificate number. The shipper (or shipper's
authorized agent) shall enter the Export Form Certificate number in the
Automated Export System (AES), pursuant to the Electronic Export
Information (EEI) filing requirements under the Foreign Trade
Regulations (15 CFR part 30) and Export Clearance Requirements (15 CFR
part 758), except the exemption code BULK CONTRS shall be entered for
apples in bulk containers destined for Canada.
(c) Delivery and filing of Export Form Certificate. The shipper
shall deliver a copy of the Export Form Certificate or Memorandum of
Inspection to the export carrier. Whenever apples are inspected and
certified at any point other than the port of exportation, the shipper
shall deliver a copy of the Export Form Certificate or Memorandum of
Inspection to the agent of the first carrier that thereafter transports
such apples, and such agent shall deliver the copy to the proper
official of the carrier on which the apples, covered by the certificate
or memorandum, are to be exported. The shipper shall also maintain an
electronic or paper copy of the Export Form Certificate for a period of
not less than three (3) years after date of export and shall submit,
upon request from USDA, an electronic or paper copy of the Export Form
Certificate to USDA, AMS, Specialty Crops Program, Marketing Order and
Agreement Division, 1400 Independence Avenue SW., Stop 0237,
Washington, DC 20250-0237; telephone (202) 720-4607; fax (202) 720-
5698; or email AMSCompliance@ams.usda.gov.
(d) Spray residue tolerance. If the inspector has reason to believe
that samples of a lot of apples have been obtained for a determination
as to compliance with tolerance for spray residue, established under
the Federal Food, Drug and Cosmetic Act, as amended (52 Stat. 1040; 21
U.S.C. 301 et seq.), he or she shall not issue a certificate on the lot
unless it complies with such tolerances.
PART 35--EXPORT GRAPES AND PLUMS
0
4. The authority citation for 7 CFR part 35 continues to read as
follows:
Authority: 74 Stat. 734; 75 Stat. 220; 7 U.S.C. 591-599.
0
5. Add Sec. 35.9 to read as follows:
Sec. 35.9 Shipper.
Shipper means any person who ships or offers for shipment any
variety of vinifera species table grapes to any foreign destination.
0
6. Revise Sec. 35.12 to read as follows:
Sec. 35.12 Inspection and certification.
(a) Inspection. Each person shipping or offering for shipment any
variety of vinifera species table grapes to any foreign destination
other than destinations in Canada or Mexico shall cause them to be
inspected within 14 days prior to date of export by the Federal or
Federal-State Inspection Service in accordance with regulations
governing the inspection and certification of fresh fruits, vegetables,
and other products (part 51 of this title) and certified as meeting the
requirements of the Act and this part.
(b) Certification. The Federal or Federal-State certificate shall
be designated as an ``Export Form Certificate'' and shall include one
of the following statements as applicable:
(1) For any variety meeting specifications of paragraph (a) of
Sec. 35.11 ``Meets requirements of Export Grape and Plum Act'' or (2)
For any variety meeting specifications of paragraph (b) of Sec. 35.11
``Meets requirements of Export Grape and Plum Act except for export to
destinations in Europe, Greenland, or Japan.'' No carrier shall
transport or receive for transportation any such variety to any foreign
destination other than Canada or Mexico unless a copy of the Export
Form Certificate issued thereon showing that the grapes meet
requirements for the applicable export destination is surrendered to
such carrier when such variety is received.
(c) Delivery and filing of Export Form Certificate. The shipper
shall deliver a copy of the Export Form Certificate covering the
shipment to the export carrier. Whenever grapes are inspected and
certified at any point other than port of exportation, the shipper
shall deliver a copy of the Export Form Certificate to the agent of the
first carrier that thereafter transports such grapes, and such agent
shall deliver such copy to the proper official of the carrier on which
the grapes are to be exported. The shipper shall also maintain an
electronic or paper copy of the Export Form Certificate for a period of
not less than three (3) years after date of export and shall submit,
upon request from USDA, an electronic or paper copy of the Export Form
Certificate to USDA, AMS, Specialty Crops Program, Marketing Order and
Agreement
[[Page 87493]]
Division, 1400 Independence Avenue SW., Stop 0237, Washington, DC
20250-0237; telephone (202) 720-4607; fax (202) 720-5698; or email
AMSCompliance@ams.usda.gov.
(d) Export Form Certificate number. The shipper (or shipper's
authorized agent) shall enter the Export Form Certificate number in the
U.S. Census Bureau's Automated Export System (AES), pursuant to the
Electronic Export Information (EEI) filing requirements under the
Foreign Trade Regulations (15 CFR part 30) and Export Clearance
Requirements (15 CFR part 758).
(e) Spray residue tolerance. If the inspector has reason to believe
that samples of a lot of any variety of vinifera species table grapes
have been obtained for a determination as to compliance with tolerance
for spray residue, established under the Federal Food, Drug and
Cosmetic Act, as amended (52 Stat. 1040; 21 U.S.C. 301 et seq.), he or
she shall not issue a certificate on the lot unless it complies with
such tolerances.
Dated: November 29, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-29017 Filed 12-2-16; 8:45 am]
BILLING CODE P
