Dairy Tariff-Rate Quota Import Licensing Program, 52851-52852 [2022-18751]
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52851
Rules and Regulations
Federal Register
Vol. 87, No. 167
Tuesday, August 30, 2022
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
DEPARTMENT OF AGRICULTURE
Foreign Agricultural Service
7 CFR Part 6
RIN 0551–AB03
Dairy Tariff-Rate Quota Import
Licensing Program
Foreign Agricultural Service,
USDA.
ACTION: Interim final rule; request for
comments.
AGENCY:
This interim final rule
amends the regulations that provide for
the issuance of licenses to import
certain dairy articles under tariff-rate
quotas (TRQs) as set forth in the
Harmonized Tariff Schedule of the
United States (HTSUS). The rule
suspends for an additional year the
historical license reduction provision
which would otherwise apply beginning
with the 2023 quota year. This change
will allow license holders additional
time to adjust to challenging market
conditions impacting the dairy sector.
DATES: Effective August 30, 2022. Send
comments on or before September 29,
2022.
SUMMARY:
You may send comments,
identified by [docket number and/or
RIN number], by any of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for sending comments.
• Email: dairy-ils@fas.usda.gov.
Include [docket number and/or RIN
number] in the subject line of the
message.
• Mail: Dairy Import Programs,
Multilateral Affairs, Trade Policy and
Geographic Affairs, Foreign Agricultural
Service, United States Department of
Agriculture; 1400 Independence Avenue
SW, STOP 1070; Washington, DC 20250.
• Hand Delivery/Courier: Dairy
Import Programs, Multilateral Affairs,
Trade Policy and Geographic Affairs,
khammond on DSKJM1Z7X2PROD with RULES
ADDRESSES:
VerDate Sep<11>2014
15:56 Aug 29, 2022
Jkt 256001
Foreign Agricultural Service, United
States Department of Agriculture; 1400
Independence Avenue SW, STOP 1070;
Washington, DC 20250.
Instructions: All submissions received
must include the agency name and
docket number or Regulatory
Information Number (RIN) for this
interim final rule. Comments will be
available for inspection online at
www.regulations.gov and at the mail
address listed above between 8 a.m. and
4:30 p.m., Monday through Friday,
except holidays.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Riley, (202) 720 6868; or by
email at: Elizabeth.riley@usda.gov.
Persons with disabilities who require an
alternative means for communication of
information (e.g., Braille, large print,
audiotape, etc.) should contact FASReasonableAccommodation@usda.gov
or Cynthia Stewart (Reasonable
Accommodation Coordinator),
cynthia.stewart@usda.gov.
SUPPLEMENTARY INFORMATION: The
Foreign Agricultural Service (FAS),
under a delegation of authority from the
Under Secretary of Agriculture,
administers the Dairy Tariff-Rate Quota
Import Licensing regulations codified at
7 CFR 6.20 through 6.36 that provide for
the issuance of licenses to import
certain dairy articles under TRQs as set
forth in certain notes in Chapter 4 of the
HTSUS. These dairy articles may be
entered into the United States at the
low-tier tariff only by or for the account
of a person, as defined in the
regulations, to whom such licenses have
been issued and only in accordance
with the terms and conditions of the
regulations. Licenses are issued on a
calendar year basis and each license
authorizes the licensee to import a
specified quantity and type of dairy
article from a specified country of
origin.
FAS issues three types of dairy import
licenses: historical, non-historical
(lottery), and designated. For all three
license types, persons must apply each
year between September 1 and October
15. Historical and designated licensees
may apply for lottery licenses subject to
certain conditions. Licensees may fail to
qualify for a license for a specific item
from a specific country in the following
year if they do not meet certain
requirements. Licensees must (i) apply
for the license each year, (ii) pay an
annual fee, and (iii) have imported at
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
least 85 percent of the final license
amount from the previous year. To
avoid ineligibility due to the 85-percent
rule, licensees may surrender up to 100
percent of the license, but must import
85 percent of any quantity not
surrendered.
Section 6.25(b) of the regulations
provides that beginning with the 2023
quota year, any historical licensee who
surrenders more than 50 percent of the
license amount for the same item from
the same country during at least three of
the most recent five years will be issued
a historical license thereafter in an
amount equal to the average amount
imported under that license for those
five quota years. FAS has suspended
§ 6.25(b) on four previous occasions,
most recently for an additional seven
years encompassing the 2016–2022
quota years.
This rule provides historical license
holders additional time to adjust to
changing market conditions by
suspending implementation of § 6.25(b)
through the end of quota year 2023. FAS
recognizes that COVID–19 pandemicrelated shipping delays have made
economic conditions difficult for several
of the past years. In addition, the United
States imposed retaliatory tariffs on
certain EU exports from October 2019
until June 2021, including certain dairy
products, in response to the EU’s failure
to implement the World Trade
Organization Dispute Settlement Body’s
recommendations in the dispute EC and
Certain member States—Measures
Affecting Trade in Large Civil Aircraft
(DS316). The duties on dairy products,
levied at 25% ad valorem, contributed
to the volatile market conditions U.S.
dairy importers have recently faced.
Several dairy commodities that were
subject to these retaliatory tariffs stand
to lose historical quantity if § 6.25(b) is
not suspended. Overall, FAS estimates
that allowing § 6.25(b) to go into effect
in quota year 2023 would result in the
reduction or elimination of
approximately 18% of historical
licenses. In addition, FAS analysis
shows that fill rates for the lottery
category for those commodities that
stand to lose the most historical licenses
remain low, when viewed over the
course of the past five quota years.
E:\FR\FM\30AUR1.SGM
30AUR1
52852
Federal Register / Vol. 87, No. 167 / Tuesday, August 30, 2022 / Rules and Regulations
administrative remedies must be
exhausted.
Regulatory Analysis
Administrative Procedure Act
Pursuant to the Administrative
Procedure Act (APA), notice and
comment are not required prior to the
issuance of a final rule if an agency, for
good cause, finds that ‘‘notice and
public procedure thereon are
impracticable, unnecessary, or contrary
to the public interest.’’ (5 U.S.C.
553(b)(B)). As discussed above, FAS has
determined that recent market events
warrant suspending § 6.25(b) for quota
year 2023.
To have a meaningful effect, the
amendment suspending § 6.25(b) for the
next quota year must take effect prior to
the application period for quota year
2023, which begins September 1, 2022,
and ends on October 15, 2022. For this
reason, FAS finds good cause exists to
issue the rule without notice and
comment pursuant to 5 U.S.C. 553(b)(B),
and without a delayed effective date
pursuant to 5 U.S.C. 553(d)(3). Although
this rule will take immediate effect, FAS
invites interested persons to submit
comments on the rule and will consider
all relevant comments when
determining whether further
amendments to the regulation are
needed.
Executive Order 12866
The rule has been determined to be
not significant under E.O. 12866 and
has been reviewed by the Office of
Management and Budget.
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) ensures that
regulatory and information
requirements are tailored to the size and
nature of small businesses, small
organizations, and small governmental
jurisdictions. The Administrator
certifies that this rule will not have a
significant economic impact on small
businesses participating in the program.
khammond on DSKJM1Z7X2PROD with RULES
Executive Order 12988
This rule has been reviewed under
E.O. 12988. This rule meets the
applicable standards in sections 3(a)
and 3(b)(2) of E.O. 12988, Civil Justice
Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden. The provisions of this rule
would not have a preemptive effect with
respect to any State or local laws,
regulations, or policies which conflict
with such provision or which otherwise
impede their full implementation. This
rule will not have a retroactive effect.
Before any judicial action may be
brought forward regarding this rule, all
15:56 Aug 29, 2022
Jkt 256001
FAS has reviewed this rule in
accordance with E.O. 13132 regarding
federalism and has determined that it
does not have ‘‘federalism
implications.’’ The rule will not ‘‘have
substantial direct effects on the states,
on the relationship between the national
government and the states, or on the
distribution of power and
responsibilities among the various
levels of government.’’
Executive Order 13175
This rule does not have tribal
implications under E.O. 13175,
Consultation and Coordination with
Indian Tribal Governments, because it
does not have a substantial direct effect
on one or more Indian tribes, on the
relationship between the Federal
government and Indian tribes, or on the
distribution of power and
responsibilities between the Federal
Government and Indian tribes.
National Environmental Policy Act
The Administrator has determined
that this action will not have a
significant effect on the quality of the
human environment. Therefore, neither
an Environmental Assessment nor an
Environmental Impact Statement is
necessary for this rule.
Unfunded Mandates Reform Act
Regulatory Flexibility Act
VerDate Sep<11>2014
Executive Order 13132
This rule does not impose an
unfunded mandate or any other
requirement on state, local, or tribal
governments. Accordingly, these
programs are not subject to the
provisions of the Unfunded Mandates
Reform Act (2 U.S.C. 1501 et seq.).
quota, Reporting and recordkeeping
requirements.
Accordingly, for these reasons, 7 CFR
part 6 is amended as follows:
PART 6—IMPORT QUOTAS AND FEES
Subpart B—Dairy Tariff-Rate Quota
Import Licensing
1. The authority citation for subpart B
continues to read as follows:
■
Authority: Additional U.S. Notes 6, 7, 8,
12, 14, 16–23 and 25 to Chapter 4 and
General Note 15 of the Harmonized Tariff
Schedule of the United States (19 U.S.C.
1202), Pub. L. 97–258, 96 Stat. 1051, as
amended (31 U.S.C. 9701), and secs. 103 and
404, Pub. L. 103–465, 108 Stat. 4819 (19
U.S.C. 3513 and 3601).
2. Amend § 6.25 by revising paragraph
(b) to read as follows:
■
§ 6.25
Allocation of licenses.
*
*
*
*
*
(b) Historical licenses for the 2016
and subsequent quota years (Appendix
1). A person issued a historical license
for the current quota year will be issued
a historical license in the same amount
for the same article from the same
country for the next quota year except
that beginning with the 2024 quota year,
a person who has surrendered more
than 50 percent of such historical
license in at least three of the prior 5
quota years will thereafter be issued a
license in an amount equal to the
average annual quantity entered during
those 5 quota years.
*
*
*
*
*
Daniel Whitley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2022–18751 Filed 8–25–22; 4:15 pm]
BILLING CODE 3410–10–P
Executive Order 12630
This Executive Order requires careful
evaluation of governmental actions that
interfere with constitutionally protected
property rights. This rule does not
interfere with any property rights and,
therefore, does not need to be evaluated
on the basis of the criteria outlined in
E.O. 12630.
DEPARTMENT OF AGRICULTURE
Congressional Review Act
Crop Insurance Reporting and Other
Changes (CIROC); Corrections
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), OMB’s Office
of Information and Regulatory Affairs
has determined that this is not a ‘‘major
rule’’ as defined by the Congressional
Review Act (5 U.S.C. 804(2)).
List of Subjects in 7 CFR Part 6
Agricultural commodities, Dairy,
Cheese, Imports, Procedural rules,
Application requirements, Tariff-rate
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
Federal Crop Insurance Corporation
7 CFR Part 457
[Docket ID FCIC–22–0004]
RIN 0563–AC79
Federal Crop Insurance
Corporation, U.S. Department of
Agriculture (USDA).
ACTION: Correcting amendment.
AGENCY:
On June 30, 2022, the Federal
Crop Insurance Corporation revised the
Area Risk Protection Insurance (ARPI)
Regulations, Common Crop Insurance
Policy (CCIP) Basic Provisions, and 20
SUMMARY:
E:\FR\FM\30AUR1.SGM
30AUR1
Agencies
[Federal Register Volume 87, Number 167 (Tuesday, August 30, 2022)]
[Rules and Regulations]
[Pages 52851-52852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18751]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 87, No. 167 / Tuesday, August 30, 2022 /
Rules and Regulations
[[Page 52851]]
DEPARTMENT OF AGRICULTURE
Foreign Agricultural Service
7 CFR Part 6
RIN 0551-AB03
Dairy Tariff-Rate Quota Import Licensing Program
AGENCY: Foreign Agricultural Service, USDA.
ACTION: Interim final rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: This interim final rule amends the regulations that provide
for the issuance of licenses to import certain dairy articles under
tariff-rate quotas (TRQs) as set forth in the Harmonized Tariff
Schedule of the United States (HTSUS). The rule suspends for an
additional year the historical license reduction provision which would
otherwise apply beginning with the 2023 quota year. This change will
allow license holders additional time to adjust to challenging market
conditions impacting the dairy sector.
DATES: Effective August 30, 2022. Send comments on or before September
29, 2022.
ADDRESSES: You may send comments, identified by [docket number and/or
RIN number], by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for sending comments.
Email: [email protected]. Include [docket number and/
or RIN number] in the subject line of the message.
Mail: Dairy Import Programs, Multilateral Affairs, Trade
Policy and Geographic Affairs, Foreign Agricultural Service, United
States Department of Agriculture; 1400 Independence Avenue SW, STOP
1070; Washington, DC 20250.
Hand Delivery/Courier: Dairy Import Programs, Multilateral
Affairs, Trade Policy and Geographic Affairs, Foreign Agricultural
Service, United States Department of Agriculture; 1400 Independence
Avenue SW, STOP 1070; Washington, DC 20250.
Instructions: All submissions received must include the agency name
and docket number or Regulatory Information Number (RIN) for this
interim final rule. Comments will be available for inspection online at
www.regulations.gov and at the mail address listed above between 8 a.m.
and 4:30 p.m., Monday through Friday, except holidays.
FOR FURTHER INFORMATION CONTACT: Elizabeth Riley, (202) 720 6868; or by
email at: [email protected]. Persons with disabilities who
require an alternative means for communication of information (e.g.,
Braille, large print, audiotape, etc.) should contact [email protected] or Cynthia Stewart (Reasonable
Accommodation Coordinator), [email protected].
SUPPLEMENTARY INFORMATION: The Foreign Agricultural Service (FAS),
under a delegation of authority from the Under Secretary of
Agriculture, administers the Dairy Tariff-Rate Quota Import Licensing
regulations codified at 7 CFR 6.20 through 6.36 that provide for the
issuance of licenses to import certain dairy articles under TRQs as set
forth in certain notes in Chapter 4 of the HTSUS. These dairy articles
may be entered into the United States at the low-tier tariff only by or
for the account of a person, as defined in the regulations, to whom
such licenses have been issued and only in accordance with the terms
and conditions of the regulations. Licenses are issued on a calendar
year basis and each license authorizes the licensee to import a
specified quantity and type of dairy article from a specified country
of origin.
FAS issues three types of dairy import licenses: historical, non-
historical (lottery), and designated. For all three license types,
persons must apply each year between September 1 and October 15.
Historical and designated licensees may apply for lottery licenses
subject to certain conditions. Licensees may fail to qualify for a
license for a specific item from a specific country in the following
year if they do not meet certain requirements. Licensees must (i) apply
for the license each year, (ii) pay an annual fee, and (iii) have
imported at least 85 percent of the final license amount from the
previous year. To avoid ineligibility due to the 85-percent rule,
licensees may surrender up to 100 percent of the license, but must
import 85 percent of any quantity not surrendered.
Section 6.25(b) of the regulations provides that beginning with the
2023 quota year, any historical licensee who surrenders more than 50
percent of the license amount for the same item from the same country
during at least three of the most recent five years will be issued a
historical license thereafter in an amount equal to the average amount
imported under that license for those five quota years. FAS has
suspended Sec. 6.25(b) on four previous occasions, most recently for
an additional seven years encompassing the 2016-2022 quota years.
This rule provides historical license holders additional time to
adjust to changing market conditions by suspending implementation of
Sec. 6.25(b) through the end of quota year 2023. FAS recognizes that
COVID-19 pandemic-related shipping delays have made economic conditions
difficult for several of the past years. In addition, the United States
imposed retaliatory tariffs on certain EU exports from October 2019
until June 2021, including certain dairy products, in response to the
EU's failure to implement the World Trade Organization Dispute
Settlement Body's recommendations in the dispute EC and Certain member
States--Measures Affecting Trade in Large Civil Aircraft (DS316). The
duties on dairy products, levied at 25% ad valorem, contributed to the
volatile market conditions U.S. dairy importers have recently faced.
Several dairy commodities that were subject to these retaliatory
tariffs stand to lose historical quantity if Sec. 6.25(b) is not
suspended. Overall, FAS estimates that allowing Sec. 6.25(b) to go
into effect in quota year 2023 would result in the reduction or
elimination of approximately 18% of historical licenses. In addition,
FAS analysis shows that fill rates for the lottery category for those
commodities that stand to lose the most historical licenses remain low,
when viewed over the course of the past five quota years.
[[Page 52852]]
Regulatory Analysis
Administrative Procedure Act
Pursuant to the Administrative Procedure Act (APA), notice and
comment are not required prior to the issuance of a final rule if an
agency, for good cause, finds that ``notice and public procedure
thereon are impracticable, unnecessary, or contrary to the public
interest.'' (5 U.S.C. 553(b)(B)). As discussed above, FAS has
determined that recent market events warrant suspending Sec. 6.25(b)
for quota year 2023.
To have a meaningful effect, the amendment suspending Sec. 6.25(b)
for the next quota year must take effect prior to the application
period for quota year 2023, which begins September 1, 2022, and ends on
October 15, 2022. For this reason, FAS finds good cause exists to issue
the rule without notice and comment pursuant to 5 U.S.C. 553(b)(B), and
without a delayed effective date pursuant to 5 U.S.C. 553(d)(3).
Although this rule will take immediate effect, FAS invites interested
persons to submit comments on the rule and will consider all relevant
comments when determining whether further amendments to the regulation
are needed.
Executive Order 12866
The rule has been determined to be not significant under E.O. 12866
and has been reviewed by the Office of Management and Budget.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) ensures that
regulatory and information requirements are tailored to the size and
nature of small businesses, small organizations, and small governmental
jurisdictions. The Administrator certifies that this rule will not have
a significant economic impact on small businesses participating in the
program.
Executive Order 12988
This rule has been reviewed under E.O. 12988. This rule meets the
applicable standards in sections 3(a) and 3(b)(2) of E.O. 12988, Civil
Justice Reform, to minimize litigation, eliminate ambiguity, and reduce
burden. The provisions of this rule would not have a preemptive effect
with respect to any State or local laws, regulations, or policies which
conflict with such provision or which otherwise impede their full
implementation. This rule will not have a retroactive effect. Before
any judicial action may be brought forward regarding this rule, all
administrative remedies must be exhausted.
Executive Order 13132
FAS has reviewed this rule in accordance with E.O. 13132 regarding
federalism and has determined that it does not have ``federalism
implications.'' The rule will not ``have substantial direct effects on
the states, on the relationship between the national government and the
states, or on the distribution of power and responsibilities among the
various levels of government.''
Executive Order 13175
This rule does not have tribal implications under E.O. 13175,
Consultation and Coordination with Indian Tribal Governments, because
it does not have a substantial direct effect on one or more Indian
tribes, on the relationship between the Federal government and Indian
tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian tribes.
National Environmental Policy Act
The Administrator has determined that this action will not have a
significant effect on the quality of the human environment. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is necessary for this rule.
Unfunded Mandates Reform Act
This rule does not impose an unfunded mandate or any other
requirement on state, local, or tribal governments. Accordingly, these
programs are not subject to the provisions of the Unfunded Mandates
Reform Act (2 U.S.C. 1501 et seq.).
Executive Order 12630
This Executive Order requires careful evaluation of governmental
actions that interfere with constitutionally protected property rights.
This rule does not interfere with any property rights and, therefore,
does not need to be evaluated on the basis of the criteria outlined in
E.O. 12630.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
OMB's Office of Information and Regulatory Affairs has determined that
this is not a ``major rule'' as defined by the Congressional Review Act
(5 U.S.C. 804(2)).
List of Subjects in 7 CFR Part 6
Agricultural commodities, Dairy, Cheese, Imports, Procedural rules,
Application requirements, Tariff-rate quota, Reporting and
recordkeeping requirements.
Accordingly, for these reasons, 7 CFR part 6 is amended as follows:
PART 6--IMPORT QUOTAS AND FEES
Subpart B--Dairy Tariff-Rate Quota Import Licensing
0
1. The authority citation for subpart B continues to read as follows:
Authority: Additional U.S. Notes 6, 7, 8, 12, 14, 16-23 and 25
to Chapter 4 and General Note 15 of the Harmonized Tariff Schedule
of the United States (19 U.S.C. 1202), Pub. L. 97-258, 96 Stat.
1051, as amended (31 U.S.C. 9701), and secs. 103 and 404, Pub. L.
103-465, 108 Stat. 4819 (19 U.S.C. 3513 and 3601).
0
2. Amend Sec. 6.25 by revising paragraph (b) to read as follows:
Sec. 6.25 Allocation of licenses.
* * * * *
(b) Historical licenses for the 2016 and subsequent quota years
(Appendix 1). A person issued a historical license for the current
quota year will be issued a historical license in the same amount for
the same article from the same country for the next quota year except
that beginning with the 2024 quota year, a person who has surrendered
more than 50 percent of such historical license in at least three of
the prior 5 quota years will thereafter be issued a license in an
amount equal to the average annual quantity entered during those 5
quota years.
* * * * *
Daniel Whitley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2022-18751 Filed 8-25-22; 4:15 pm]
BILLING CODE 3410-10-P