Pork Promotion, Research, and Consumer Information Order-Decrease in Assessment Rate and Importer Assessments, 66535-66539 [2022-23762]

Download as PDF 66535 Rules and Regulations Federal Register Vol. 87, No. 213 Friday, November 4, 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 Agricultural Marketing Service 7 CFR Part 1230 [Doc. No. AMS–LP–22–0032] Pork Promotion, Research, and Consumer Information Order— Decrease in Assessment Rate and Importer Assessments Agricultural Marketing Service, USDA. ACTION: Final rule. AGENCY: Pursuant to the Pork Promotion, Research, and Consumer Information Act of 1985 (Act) and the Pork Promotion, Research, and Consumer Information Order (Order) thereunder, this rulemaking decreases the current rate of assessment of 0.40 percent of the market value of live porcine animals to 0.35 percent and decreases the amount of assessment per pound due on imported pork and pork products (one- to three-hundredths of a cent per pound). These reductions in assessment rates are made in response to the approximately 47 percent increase in 2021 in the average prices of live hogs above its 3-year average from 2018–2020 and reflect the National Pork Producers Delegate Body’s (Delegate Body) desire to lessen the assessment burden on producers and make such funds available to pork producers and the industry. The adjustment in importer assessments also brings the equivalent market value of live animals from which imported pork and pork products are derived in line with the market value of domestic porcine animals. This action also updates the Harmonized Tariff Schedule number for prepared or preserved pork in the regulation. khammond on DSKJM1Z7X2PROD with RULES SUMMARY: DATES: Effective date: January 1, 2023. FOR FURTHER INFORMATION CONTACT: Maribel Reyna; Agricultural Marketing Specialist; Research and Promotion VerDate Sep<11>2014 17:31 Nov 03, 2022 Jkt 259001 Division; Telephone: (202) 302–1139; or Email: Maribel.Reyna@usda.gov. SUPPLEMENTARY INFORMATION: Executive Order 12866 This rule does not meet the definition of significant regulatory action contained in section 3(f) of Executive Order (E.O.) 12866 and is not subject to review by the Office of Management and Budget (OMB). Executive Order 12988 This final rule has been reviewed under E.O. 12988, Civil Justice Reform. It is not intended to have a retroactive effect. The Pork Promotion, Research, and Consumer Information Act of 1985 (Act) states that the statute is intended to occupy the field of promotion and consumer education involving pork and pork products and of obtaining funds thereof from pork producers and that the regulation of such activity (other than a regulation or requirement relating to a matter of public health or the provision of State or local funds for such activity) that is in addition to or different from the Act may not be imposed by a State. The Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under Sec. 1625 of the Act, a person subject to an order may file a petition with the United States Department of Agriculture (USDA) stating that such order, a provision of such order or an obligation imposed in connection with such order is not in accordance with the law; and requesting a modification of the order or an exemption from the order. Such person is afforded the opportunity for a hearing on the petition. After the hearing, the USDA would rule on the petition. The Act provides that the district court of the United States in the district in which a person resides or does business has jurisdiction to review the USDA’s determination, if a complaint is filed no later than 20 days after the date such person receives notice of such determination. Executive Order 13175 This final rule has also been reviewed under E.O. 13175, Consultation and Coordination with Indian Tribal Governments. E.O. 13175 requires Federal agencies to consult and coordinate with tribes on a governmentto-government basis on: (1) policies that have tribal implication, including PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 regulation, legislative comments, or proposed legislation; and (2) other policy statements or actions that have substantial direct effects 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. The Agricultural Marketing Service (AMS) has assessed the impact of this final rule on Indian tribes and determined that this rule will not have tribal implications that require consultation under E.O. 13175. AMS participates on teleconference with tribal leaders where matters of mutual interest regarding the marketing of agricultural products are discussed. Information about the changes to the assessment rate will be relayed through a notice to trade. AMS will work with the USDA, Office of Tribal Relations to ensure meaningful consultation is provided as needed with regards to the final rule. Regulatory Flexibility Act and Paperwork Reduction Act This action was reviewed under the Regulatory Flexibility Act (5 United States Code (U.S.C.) 601 et seq.) in the Order initially published in the September 5, 1986, issue of the Federal Register (51 FR 31898). The AMS Administrator determined at that time that the Order would not have significant economic impact on a substantial number of small entities; therefore, a regulatory impact analysis was not required. The Census of Agriculture reports that 64,871 U.S. farms produced hogs and pigs in 2017. Many of those farms are likely to be classified as small business by having total sales less than the $3.5 million threshold set by the Small Business Administration (SBA) definition (13 CFR 121.201). AMS does not believe that this rule change will have a significant or differential economic impact on small producers because total assessments paid are proportionate to the value of hogs sold by a producer. This final rule decreases the rate of the assessment from 0.40 percent of the market value of porcine animals to 0.35 percent and decreases the amount of assessment per pound due on imported pork and pork products. While domestic assessments are only made to live porcine animals, assessments on E:\FR\FM\04NOR1.SGM 04NOR1 khammond on DSKJM1Z7X2PROD with RULES 66536 Federal Register / Vol. 87, No. 213 / Friday, November 4, 2022 / Rules and Regulations imports are made to both live animal imports and post-slaughter pork and pork products. This update to the regulations updates assessments on the imported product based on the Harmonized Tariff Schedule (HTS) to bring the equivalent market value of live animals from which imported pork and pork products are derived in line with the market value of domestic porcine animals. From 2018 to 2020, total checkoff revenue ranged from $72.3 million to $77.6 million. In that time, 95.6 percent of all revenue was from domestic sales and 4.4 percent was derived from assessments on imported hogs and pork products. Of domestic revenue, 98.6 percent was derived from market hogs and 1.4 percent was derived from feeder hogs. In 2021, total checkoff revenue increased approximately 41 percent to $103.6 million, an increase primarily reflecting the 47 percent increase in live hog prices.1 Despite the price increase, both the share of all revenue derived from imports and the share of domestic revenue derived from live hogs was mostly unchanged in 2021 relative to previous years. The assessment decrease reduces annual funding of the promotion, research, and consumer information program by an estimated $13.5 million under the assumption that 2021 market conditions persist. This decrease reflects both a $12.3 million reduction in domestic assessments stemming from the 12.5 percent decrease in the rate of assessment for live hogs (i.e., the change from 0.40 to 0.35 percent assessment for live weight hogs), which totaled $98.4 million in 2021 and a $1.2 million reduction in importer assessments. In 2021, the gross market value of all swine marketed in the United States was approximately $27 billion. The assessment decrease reflects the Delegate Body’s desire to lessen the assessment burden on producers and make such funds available to pork producers and the industry. The expected benefit of the rule change is savings of $13.5 million in assessments that would have been paid under the existing rule. The expected cost of the rule is the potential loss of returns accruing to the industry from promotion, research, and consumer information programs paid for by the National Pork Board using assessment funds. While these programs have been shown to earn positive returns in academic studies when considering pre2021 data, the sharp 2021 increase in assessment revenue is likely to create diminishing marginal returns to advertising. 2 However, even with the reduction in assessment rates, total program funds will have still increased significantly above 2020 levels owing to the ongoing increase in price levels, assuming the general market conditions of 2021 persist. For these reasons, the economic impact of the assessments is not expected to be a significant part of the total market value of swine. Accordingly, the AMS Administrator determined that this action will not have a significant economic impact on substantial number of small entities. The information collection requirements have been previously approved by the OMB and have been assigned OMB control number 0581– 0093. Reapproval for the information collection will not be necessary since the rate assessment does not substantially change the assessment collection process. The Act (7 U.S.C. 4801–4819), enacted on December 23, 1985, authorized the establishment of a national pork promotion, research, and consumer information program. The final Order at 7 CFR part 1230 establishing a pork promotion, research, and consumer information program was published in the September 5, 1986, issue of the Federal Register (51 FR 31898; as corrected, at 51 FR 36383 and amended at 53 FR 1909, 53 FR 30243, 56 FR 4, 56 FR 51635, 60 FR 29962, 61 FR 28002, 62 FR 26205, 63 FR 45935, 64 FR 44643, 66 FR 67071, 67 FR 58320, and 69 FR 9924) and assessments began on November 1, 1986. The program was funded by an initial assessment rate of 0.25 percent of the market value of all porcine animals marketed in the United States and on imported porcine animals with an equivalent assessment on pork and pork products. However, that rate was increased to 0.35 percent effective December 1, 1991 (56 FR 51635) and to 0.45 percent effective September 3, 1995 (60 FR 29962). Further, the rate was decreased to 0.40 percent effective September 30, 2002 (67 FR 58320). The import assessments were decreased by five-hundredths to seven-hundredths of a cent per pound effective April 2, 2004, to reflect a decrease in the 2002 average price for domestic barrows and gilts (69 FR 9924). The total annual assessment rate collected in 2021 was $103.6 million. Assessments on imported pork and pork products accounted for about $4.5 million of the total. 1 Specifically, the Barrow and Gilt National Base Live Equivalent Price (51–52% Lean) rose from its 2018–20 average of $45.7 to $67.29 per cwt. 2 Kaiser, Harry M. ‘‘An Economic Analysis of the National Pork Board Checkoff Program’’ Publication of the National Pork Board, January 2022 VerDate Sep<11>2014 17:31 Nov 03, 2022 Jkt 259001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 The Order requires that producers pay to the National Pork Board an assessment of 0.40 percent of the market value of each porcine animal upon sale (7 CFR 1230.112). However, for purposes of collecting and remitting assessments, porcine animals are divided into three separate categories (1) feeder pigs, (2) slaughter hogs, and (3) breeding stock. Regulations under 7 CFR 1230.71 specifies that purchasers of feeder pigs, slaughter hogs, and breeding stock shall collect an assessment on these animals if assessments are due. Section 1230.71(b) of the Order further provides that for the purpose of collecting and remitting assessments persons engaged as a commission merchant, auction market, or livestock market in the business of receiving such porcine animals for sale on commission for or on behalf of a producer shall be deemed to be a purchaser. Section 1230.110(a) requires importers of porcine animals to pay U.S. Customs Service (USCS), upon importation, the assessment of 0.40 percent of the porcine animal’s declared value and importers of pork and pork products to pay USCS, upon importation, the assessment of 0.40 percent of the market value of the live porcine animals from which such pork and pork products were produced. The Act and Order contain provisions for adjusting the rate of assessment. The Delegate Body has the responsibility to recommend the rate of assessment to the Department. The 2022 Delegate Body, at its annual meeting March 9–11, 2022, in Louisville, Kentucky, voted to recommend to the USDA the rate of assessment of 0.40 percent be decreased to 0.35 percent. In 2022, the Secretary appointed 155 members to serve on the Delegate Body, including 150 producers and 5 importers. At the Delegate Body annual meeting, 145 Delegates were present representing 101,017.5 valid share votes. There were 98,797.6 share votes cast following floor debate of the resolution for the rate assessment reduction. There were 93,151.3 share votes cast in favor of the 0.05 percent decrease in checkoff rate assessment. A simple majority of share votes is required to pass the resolution (7 CFR 1230.36). The assessment rate decrease also applies to the amount of assessment on imported pork and pork products pursuant to the 7 CFR 1230.110. Methodology and Analysis AMS weighed the costs and benefits of the change in pork assessment rates, acknowledging the role the Delegate Body plays in the disposition of funds and its insight into the effect of an E:\FR\FM\04NOR1.SGM 04NOR1 Federal Register / Vol. 87, No. 213 / Friday, November 4, 2022 / Rules and Regulations khammond on DSKJM1Z7X2PROD with RULES assessment decrease. The cost of the assessment reduction is the reduced funds available for research, promotion and consumer information of pork and pork products and activities that strengthen and increase demand for lives hogs sold by producers paying the assessment. Economic research has shown that such research and promotion programs generally yield positive net returns to producers, a finding confirmed in the National Pork Board’s own commissioned evaluation of the program based on data through 2020. While this finding would initially suggest that a reduction in the assessment would reduce returns to pork producers (and thus fails a cost benefit analysis test), AMS notes the sharp increase in pork prices in the intervening period as a mitigating factor to relying solely on that study. Between 2018 and 2020, the national barrows and gilt national base live weight equivalent price for 51–51% lean hogs was $45.69 per cwt on a slaughter of 131.5 million head. In 2021, the price rose 47% to $67.29 per cwt while slaughter only fell 2 percent to 129.0 million head. Together, these changes have caused checkoff revenue to increase 41 percent between 2020 and 2021. While the reduced assessment will lower expected assessment revenue in future years from 2021, AMS still expects revenue to be greater than the 2018–2020 average in 2022 and in future years owing to the expected continuation of elevated prices. In its assessments of the costs of the final rule, AMS assumed that demand for hogs and pork products is unchanged in the short run by any reduction in promotion expenditure that may result from the reduced assessment. As such, AMS finds there will be no cost to the final rule change in terms of reduced demand for pork. AMS notes that research and promotion spending is likely to exhibit diminishing marginal returns, meaning that the large increase in promotion expenditure from the 2021 increase in assessment revenue is unlikely to generate economic returns as those returns estimated from data in earlier periods, which started at a lower level.3 AMS also notes that the National 3 In the 2021 publication ‘‘An Economic Analysis of the National Pork Board Checkoff Program’’, Kaiser finds that benefit-cost ratios (BCR) for expenditure components of pork assessments to range from 71.58 to 1.37 using data from 1976 to 2020. At the lower bound of that range, the 1.37 BCR value indicates that a dollar invested in promotion raises returns to producer by 1.37. That research also finds that the 90 percent lower bound for the marginal benefit-cost ratio is less one for the category of demand enhancing research (indicating negative producer returns) and between 5 and 7 for pork advertising and non-advertising promotion. VerDate Sep<11>2014 17:31 Nov 03, 2022 Jkt 259001 Pork Board, subject to the Secretary’s approval, determines specifically how assessment revenue is spent to promote pork consumption and enhance demand. Subsequently, the National Pork Board is also likely to know the point at which the highest return promotional opportunities have been exhausted and that additional advertising becomes ineffective. Based on its independent analysis of market trends and the research on returns to the pork checkoff program, AMS agrees that this reduction in assessment rate will effectuate the purposes of the Act. AMS notes that total assessment revenue is expected to remain above the 2020 level despite the assessment rate reduction. On this point, AMS calculated the total reduction in assessment revenue as the sum of the reduction in domestic and foreign revenue. Between 2018 and 2020, about 95.6 percent of assessment revenue was from domestic assessments on live hogs, most of which are market hogs although all types of hogs pay the same assessment rate. AMS estimated the reduction in domestic revenue of $12.3 by multiplying 2021 domestic revenue level of $97.3 million by the 12.5 percent reduction in the rate of assessment (i.e., the change in the assessment rate from 0.4 to 0.35 dollars per hundred weight.) AMS estimated the reduction in import assessment revenue using trade data available from the USDA Foreign Agricultural Service. This data shows that approximately 49 percent of assessment revenue from imports in 2021 was derived from live hog assessments, which, like domestic hogs, will see a 12.5 percent reduction in the rate of assessment. The remaining 51 percent of pork and processed pork products will see variable decreases in the rate of assessments, all of which are larger in magnitude than the 12.5 percent in the live hog rate. AMS calculated the average rate reduction for these pork and processed products to be 38.6 percent based on each product’s average value share of imports between 2019 and 2021. AMS then calculated a change in the rate of all import assessments of 25.9 percent, calculated as the sum of the 49 percent revenue share for live hogs times the 12.5 assessment reduction plus the 51 percent revenue share for pork products times the 38.6 percent reduction. Applying the average rate of assessment These estimates, however, only consider the effects of changing program expenditure by 1 percent. AMS believes that for some promotional activities funded by the checkoff the BCR may fall below one if expenditure increases by 41 percent as it did in 2021. PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 66537 to the $4.53 million in assessment revenue from imports in 2021, AMS found that import revenue will fall by $1.2 million. The adjustment in importer assessments will bring the equivalent market value of live animals from which imported pork and pork products are derived in line with the market value of domestic porcine animals. Since the original rule was put in place, the wholesale-to-farm price spread for pork has increased from 38.7 percent in 2002 to 74 percent between 2019 and 2021, as report by the USDA Economic Research Service. Other things equal, a widening price spread will cause assessments on finished wholesale products to increase relative to hogs. This rule reduces the assessment rate for imported processed products by 38.6 percent on average but only 12.5 percent for live hogs. This is not the first reduction in assessment rate for this program. As mentioned above, the program was funded by an initial assessment rate of 0.25 percent. The rate was increased to 0.35 percent effective December 1, 1991 (56 FR 51635) and then to 0.45 percent effective September 3, 1995 (60 FR 29962). Further, the rate was decreased to 0.40 percent effective September 30, 2002 (67 FR 58320). The import assessments were decreased by fivehundredths to seven-hundredths of a cent per pound effective April 2, 2004, to reflect a decrease in the 2002 average price for domestic barrows and gilts (69 FR 9924). From 2012 to current, working off a comparable rate decrease, the Board has continued to build industry initiatives that have long-term return on investment impact for pork producers. Over the years, the Board has initiated several major projects that continue to add value to the industry regardless of budget such as building trust and adding value through a positive image of US Pork, establishing US Pork as the global leader in sustainability agriculture, preventing and preparing for foreign animal diseases, and strengthening state and industry partnerships to build support that keeps people, pigs and the planet as leading fundamentals. Even with the rate reduction, AMS has no reason to believe that the Board cannot effectively continue its goal to develop and expand markets for pork and pork products by funding promotion, research, and consumer information initiatives. Further, over the past 10 years the National Pork Board has averaged producer checkoff revenue of $80.6 million. Even with an estimated $13.5 million ($12.3 million of that decrease E:\FR\FM\04NOR1.SGM 04NOR1 66538 Federal Register / Vol. 87, No. 213 / Friday, November 4, 2022 / Rules and Regulations deriving from reduced domestic assessments and $1.2 million deriving from reduced importer assessments) reduction in assessment revenue, the total assessment revenue will continue to fall above the last 10-year average assessment revenue. AMS assumes that the reduction in promotional spending from the new rates will have a negligibly small effect on demand, especially given the still substantial increase in promotion spending above historic levels. For this reason, the costs of the rule will be small as well. The benefits of the rule, however, will be the direct saving to producers of $13.5 million in reduced assessment payments. Together, AMS assesses that the benefits to this rule change will exceed its costs. Comments The proposed rule describing the decrease in rate of assessment of market value of live porcine animals and assessment per pound due on imported pork and pork products was published on July 20, 2022, in the Federal Register (87 FR 43222). The 30-day public comment period closed on August 19, 2022. The Department received a total of 3 comments. Two comments did not support the rate decrease but instead recommended switching to plant-based farming or diet. The third comment was submitted by 27 state associations supporting the assessment rate decrease and encouraging the Final Rule be effective January 1, 2023, to allow appropriate time to adjust processes for collecting checkoff funds. USDA carefully considered the comments and the recommendation of the Delegate Body and determined that a decrease in the assessment rate would effectuate the purposes of the Act. This action lessens the assessment burden on producers and importers. The effective date of January 1, 2023 gives the Board ample time to communicate this change and will not burden those that remit pork checkoff assessments. This final rule adopts the decrease in the assessment rate from 0.40 percent of market value of porcine animals to 0.35 percent as proposed and decreases the amount of assessment per pound due on imported pork and pork products. List of Subjects in 7 CFR Part 1230 Administrative practice and procedure, Advertising, Agriculture research, Meat and meat products, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, the Agricultural Marketing Service amends 7 CFR part 1230 as follows: PART 1230—PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION 1. The authority citation for 7 CFR part 1230 continues to read as follows: ■ Authority: 7 U.S.C. 4801–4819. 2. Section 1230.110 is revised to read as follows: ■ § 1230.110 Assessments on imported pork and pork products. (a) The following Harmonized Tariff Schedule (HTS) categories of imported live porcine animals are subject to assessment at the rate specified. TABLE 1 TO PARAGRAPH (a) Live porcine animals Article description 0103.10.0000 .................................. 0103.91.00 ...................................... 0103.91.0010 .................................. 0103.91.0020 .................................. 0103.91.0030 .................................. 0103.92.00 ...................................... 0103.92.0010 .................................. 0103.92.0090 .................................. Purebred breeding animals ....................................... Other: Weighing less than 50 kg each. Weighing less than 7 kg each ................................... Weighing 7 kg or more but less than 23 kg each ..... Weighing 23 kg or more but less than 50 kg each ... Weighing 50 kg or more each. Imported for immediate slaughter ............................. Other .......................................................................... (b) The following HTS categories of imported pork and pork products are Assessment 0.35 percent Customs Entered Value. 0.35 percent Customs Entered Value. 0.35 percent Customs Entered Value. 0.35 percent Customs Entered Value. 0.35 percent Customs Entered Value. 0.35 percent Customs Entered Value. subject to assessment at the rates specified. TABLE 2 TO PARAGRAPH (b) Assessment Pork and pork products Article description khammond on DSKJM1Z7X2PROD with RULES Cents/lb 0203 ................................................. Meat of swine, fresh, chilled, or frozen: Fresh or chilled: 0203.11.0000 0203.12.1010 0203.12.1020 0203.12.9010 0203.12.9020 0203.19.2010 0203.19.2090 0203.19.4010 0203.19.4090 0203.21.0000 0203.22.1000 0203.22.9000 0203.29.2000 0203.29.4000 Carcasses and half-carcasses .................................................................. Processed hams and cuts thereof, with bone in ...................................... Processed shoulders and cuts thereof, with bone in ................................ Other hams and cuts thereof, with bone in .............................................. Other shoulders and cuts thereof, with bone in ........................................ Processed spare ribs ................................................................................ Processed other ........................................................................................ Bellies ........................................................................................................ Other .......................................................................................................... Frozen carcasses and half-carcasses ...................................................... Frozen-processed hams, shoulders, and cuts thereof, with bone in ........ Frozen-other hams, shoulders, and cuts thereof, with bone in ................ Frozen processed other ............................................................................ Frozen other: ............................................................................................. VerDate Sep<11>2014 ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... 20:05 Nov 03, 2022 Jkt 259001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\04NOR1.SGM 04NOR1 0.15 0.15 0.15 0.15 0.15 0.18 0.18 0.15 0.15 0.15 0.15 0.15 0.18 0.15 Cents/kg 0.390920 0.390920 0.390920 0.390920 0.390920 0.457058 0.457058 0.390920 0.390920 0.390920 0.390920 0.390920 0.457058 0.390920 66539 Federal Register / Vol. 87, No. 213 / Friday, November 4, 2022 / Rules and Regulations TABLE 2 TO PARAGRAPH (b)—Continued Assessment Pork and pork products Article description Cents/lb 0206 ................................................. Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled, or frozen: 0206.30.0000 ................................... 0206.41.0000 ................................... 0206.49.0000 ................................... Of swine, fresh or chilled .......................................................................... Of swine, frozen: Livers ............................................................................ Of swine, frozen: Other: ............................................................................ 0210 ................................................. Meat and edible meat offal, salted, in brine, dried or smoked; edible flours and meals of meat or meat offal: 0210.11.0010 0210.11.0020 0210.12.0020 0210.12.0040 0210.19.0010 0210.19.0090 Meat Meat Meat Meat Meat Meat ................................... ................................... ................................... ................................... ................................... ................................... of of of of of of swine: Hams and cuts thereof, with bone in ............................... swine: Shoulders and cuts thereof, with bone in ........................ swine: Bellies (streaky) and cuts thereof, Bacon ........................ swine: Bellies (streaky) and cuts thereof, Other ......................... swine: Canadian style bacon ....................................................... Swine: Other ................................................................................ 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.18 0.18 0.390920 0.390920 0.390920 0.390920 0.390920 0.390920 0.390920 0.457058 0.457058 1601 ................................................. Sausages and similar products, of meat, meat offal or blood; food preparations based on these products: 1601.00.2010 ................................... 1601.00.2090 ................................... Pork canned .............................................................................................. Pork other .................................................................................................. 1602 ................................................. Other prepared or preserved meat, meat offal or blood: 1602.41.2020 ................................... Of swine: Boned and cooked and packed in airtight containers holding less than 1 kg. Of swine: Other boned and cooked and packed in airtight containers .... Of swine: Other ......................................................................................... Of swine: Shoulders and cuts thereof: Boned and cooked and packed in airtight containers holding less than 1 kg. Of swine: Shoulders and cuts thereof: Other boned and cooked and packed in airtight containers. Of swine: Other shoulders and cuts thereof ............................................. Of swine: Other, including mixtures: Not containing cereals or vegetables: Boned and cooked and packed in air-tight containers. Of swine: Other, including mixtures: Not containing cereals or vegetables: Other. Of swine: Other, including mixtures: Other ............................................... 1602.41.2040 ................................... 1602.41.9000 ................................... 1602.42.2020 ................................... 1602.42.2040 ................................... 1602.42.4000 ................................... 1602.49.2000 ................................... 1602.49.4000 ................................... 1602.49.9000 ................................... 3. Section 1230.112 is revised to read as follows: NUCLEAR REGULATORY COMMISSION § 1230.112 10 CFR Part 72 ■ Rate of assessment. In accordance with § 1230.71(d), the rate of assessment shall be 0.35 percent of market value. Melissa Bailey, Associate Administrator, Agricultural Marketing Service. [FR Doc. 2022–23762 Filed 11–3–22; 8:45 am] BILLING CODE P [NRC–2022–0144] RIN 3150–AK87 List of Approved Spent Fuel Storage Casks: NAC International, Inc. MAGNASTOR® Storage System, Certificate of Compliance No. 1031, Amendment No. 10 Nuclear Regulatory Commission. ACTION: Direct final rule. AGENCY: The U.S. Nuclear Regulatory Commission (NRC) is amending its spent fuel storage regulations by revising the NAC International, Inc. MAGNASTOR® Storage System listing within the ‘‘List of approved spent fuel storage casks’’ to include Amendment No. 10 to Certificate of Compliance No. 1031. Amendment No. 10 revises the SUMMARY: khammond on DSKJM1Z7X2PROD with RULES Cents/kg VerDate Sep<11>2014 17:31 Nov 03, 2022 Jkt 259001 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 0.23 0.23 0.567288 0.567288 0.25 0.611380 0.25 0.15 0.25 0.611380 0.390920 0.611380 0.25 0.611380 0.15 0.23 0.390920 0.567288 0.18 0.457058 0.18 0.457058 certificate of compliance by adding a new metal storage overpack. DATES: This direct final rule is effective January 18, 2023, unless significant adverse comments are received by December 5, 2022. If this direct final rule is withdrawn as a result of such comments, timely notice of the withdrawal will be published in the Federal Register. Comments received after this date will be considered if it is practical to do so, but the NRC is able to ensure consideration only for comments received on or before this date. Comments received on this direct final rule will also be considered to be comments on a companion proposed rule published in the Proposed Rules section of this issue of the Federal Register. Submit your comments, identified by Docket ID NRC–2022– 0144, at https://www.regulations.gov. If your material cannot be submitted using https://www.regulations.gov, call or email the individuals listed in the FOR ADDRESSES: E:\FR\FM\04NOR1.SGM 04NOR1

Agencies

[Federal Register Volume 87, Number 213 (Friday, November 4, 2022)]
[Rules and Regulations]
[Pages 66535-66539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23762]



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Rules and Regulations
                                                Federal Register
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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. 

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Federal Register / Vol. 87, No. 213 / Friday, November 4, 2022 / 
Rules and Regulations

[[Page 66535]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1230

[Doc. No. AMS-LP-22-0032]


Pork Promotion, Research, and Consumer Information Order--
Decrease in Assessment Rate and Importer Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer 
Information Act of 1985 (Act) and the Pork Promotion, Research, and 
Consumer Information Order (Order) thereunder, this rulemaking 
decreases the current rate of assessment of 0.40 percent of the market 
value of live porcine animals to 0.35 percent and decreases the amount 
of assessment per pound due on imported pork and pork products (one- to 
three-hundredths of a cent per pound). These reductions in assessment 
rates are made in response to the approximately 47 percent increase in 
2021 in the average prices of live hogs above its 3-year average from 
2018-2020 and reflect the National Pork Producers Delegate Body's 
(Delegate Body) desire to lessen the assessment burden on producers and 
make such funds available to pork producers and the industry. The 
adjustment in importer assessments also brings the equivalent market 
value of live animals from which imported pork and pork products are 
derived in line with the market value of domestic porcine animals. This 
action also updates the Harmonized Tariff Schedule number for prepared 
or preserved pork in the regulation.

DATES: Effective date: January 1, 2023.

FOR FURTHER INFORMATION CONTACT: Maribel Reyna; Agricultural Marketing 
Specialist; Research and Promotion Division; Telephone: (202) 302-1139; 
or Email: [email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule does not meet the definition of significant regulatory 
action contained in section 3(f) of Executive Order (E.O.) 12866 and is 
not subject to review by the Office of Management and Budget (OMB).

Executive Order 12988

    This final rule has been reviewed under E.O. 12988, Civil Justice 
Reform. It is not intended to have a retroactive effect. The Pork 
Promotion, Research, and Consumer Information Act of 1985 (Act) states 
that the statute is intended to occupy the field of promotion and 
consumer education involving pork and pork products and of obtaining 
funds thereof from pork producers and that the regulation of such 
activity (other than a regulation or requirement relating to a matter 
of public health or the provision of State or local funds for such 
activity) that is in addition to or different from the Act may not be 
imposed by a State.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under Sec. 1625 of the Act, a 
person subject to an order may file a petition with the United States 
Department of Agriculture (USDA) stating that such order, a provision 
of such order or an obligation imposed in connection with such order is 
not in accordance with the law; and requesting a modification of the 
order or an exemption from the order. Such person is afforded the 
opportunity for a hearing on the petition. After the hearing, the USDA 
would rule on the petition. The Act provides that the district court of 
the United States in the district in which a person resides or does 
business has jurisdiction to review the USDA's determination, if a 
complaint is filed no later than 20 days after the date such person 
receives notice of such determination.

Executive Order 13175

    This final rule has also been reviewed under E.O. 13175, 
Consultation and Coordination with Indian Tribal Governments. E.O. 
13175 requires Federal agencies to consult and coordinate with tribes 
on a government-to-government basis on: (1) policies that have tribal 
implication, including regulation, legislative comments, or proposed 
legislation; and (2) other policy statements or actions that have 
substantial direct effects 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. The Agricultural Marketing Service (AMS) 
has assessed the impact of this final rule on Indian tribes and 
determined that this rule will not have tribal implications that 
require consultation under E.O. 13175. AMS participates on 
teleconference with tribal leaders where matters of mutual interest 
regarding the marketing of agricultural products are discussed. 
Information about the changes to the assessment rate will be relayed 
through a notice to trade. AMS will work with the USDA, Office of 
Tribal Relations to ensure meaningful consultation is provided as 
needed with regards to the final rule.

Regulatory Flexibility Act and Paperwork Reduction Act

    This action was reviewed under the Regulatory Flexibility Act (5 
United States Code (U.S.C.) 601 et seq.) in the Order initially 
published in the September 5, 1986, issue of the Federal Register (51 
FR 31898). The AMS Administrator determined at that time that the Order 
would not have significant economic impact on a substantial number of 
small entities; therefore, a regulatory impact analysis was not 
required. The Census of Agriculture reports that 64,871 U.S. farms 
produced hogs and pigs in 2017. Many of those farms are likely to be 
classified as small business by having total sales less than the $3.5 
million threshold set by the Small Business Administration (SBA) 
definition (13 CFR 121.201). AMS does not believe that this rule change 
will have a significant or differential economic impact on small 
producers because total assessments paid are proportionate to the value 
of hogs sold by a producer.
    This final rule decreases the rate of the assessment from 0.40 
percent of the market value of porcine animals to 0.35 percent and 
decreases the amount of assessment per pound due on imported pork and 
pork products. While domestic assessments are only made to live porcine 
animals, assessments on

[[Page 66536]]

imports are made to both live animal imports and post-slaughter pork 
and pork products. This update to the regulations updates assessments 
on the imported product based on the Harmonized Tariff Schedule (HTS) 
to bring the equivalent market value of live animals from which 
imported pork and pork products are derived in line with the market 
value of domestic porcine animals.
    From 2018 to 2020, total checkoff revenue ranged from $72.3 million 
to $77.6 million. In that time, 95.6 percent of all revenue was from 
domestic sales and 4.4 percent was derived from assessments on imported 
hogs and pork products. Of domestic revenue, 98.6 percent was derived 
from market hogs and 1.4 percent was derived from feeder hogs. In 2021, 
total checkoff revenue increased approximately 41 percent to $103.6 
million, an increase primarily reflecting the 47 percent increase in 
live hog prices.\1\ Despite the price increase, both the share of all 
revenue derived from imports and the share of domestic revenue derived 
from live hogs was mostly unchanged in 2021 relative to previous years.
---------------------------------------------------------------------------

    \1\ Specifically, the Barrow and Gilt National Base Live 
Equivalent Price (51-52% Lean) rose from its 2018-20 average of 
$45.7 to $67.29 per cwt.
---------------------------------------------------------------------------

    The assessment decrease reduces annual funding of the promotion, 
research, and consumer information program by an estimated $13.5 
million under the assumption that 2021 market conditions persist. This 
decrease reflects both a $12.3 million reduction in domestic 
assessments stemming from the 12.5 percent decrease in the rate of 
assessment for live hogs (i.e., the change from 0.40 to 0.35 percent 
assessment for live weight hogs), which totaled $98.4 million in 2021 
and a $1.2 million reduction in importer assessments.
    In 2021, the gross market value of all swine marketed in the United 
States was approximately $27 billion. The assessment decrease reflects 
the Delegate Body's desire to lessen the assessment burden on producers 
and make such funds available to pork producers and the industry. The 
expected benefit of the rule change is savings of $13.5 million in 
assessments that would have been paid under the existing rule. The 
expected cost of the rule is the potential loss of returns accruing to 
the industry from promotion, research, and consumer information 
programs paid for by the National Pork Board using assessment funds. 
While these programs have been shown to earn positive returns in 
academic studies when considering pre-2021 data, the sharp 2021 
increase in assessment revenue is likely to create diminishing marginal 
returns to advertising. \2\ However, even with the reduction in 
assessment rates, total program funds will have still increased 
significantly above 2020 levels owing to the ongoing increase in price 
levels, assuming the general market conditions of 2021 persist. For 
these reasons, the economic impact of the assessments is not expected 
to be a significant part of the total market value of swine. 
Accordingly, the AMS Administrator determined that this action will not 
have a significant economic impact on substantial number of small 
entities.
---------------------------------------------------------------------------

    \2\ Kaiser, Harry M. ``An Economic Analysis of the National Pork 
Board Checkoff Program'' Publication of the National Pork Board, 
January 2022
---------------------------------------------------------------------------

    The information collection requirements have been previously 
approved by the OMB and have been assigned OMB control number 0581-
0093. Reapproval for the information collection will not be necessary 
since the rate assessment does not substantially change the assessment 
collection process.
    The Act (7 U.S.C. 4801-4819), enacted on December 23, 1985, 
authorized the establishment of a national pork promotion, research, 
and consumer information program. The final Order at 7 CFR part 1230 
establishing a pork promotion, research, and consumer information 
program was published in the September 5, 1986, issue of the Federal 
Register (51 FR 31898; as corrected, at 51 FR 36383 and amended at 53 
FR 1909, 53 FR 30243, 56 FR 4, 56 FR 51635, 60 FR 29962, 61 FR 28002, 
62 FR 26205, 63 FR 45935, 64 FR 44643, 66 FR 67071, 67 FR 58320, and 69 
FR 9924) and assessments began on November 1, 1986. The program was 
funded by an initial assessment rate of 0.25 percent of the market 
value of all porcine animals marketed in the United States and on 
imported porcine animals with an equivalent assessment on pork and pork 
products. However, that rate was increased to 0.35 percent effective 
December 1, 1991 (56 FR 51635) and to 0.45 percent effective September 
3, 1995 (60 FR 29962). Further, the rate was decreased to 0.40 percent 
effective September 30, 2002 (67 FR 58320). The import assessments were 
decreased by five-hundredths to seven-hundredths of a cent per pound 
effective April 2, 2004, to reflect a decrease in the 2002 average 
price for domestic barrows and gilts (69 FR 9924). The total annual 
assessment rate collected in 2021 was $103.6 million. Assessments on 
imported pork and pork products accounted for about $4.5 million of the 
total.
    The Order requires that producers pay to the National Pork Board an 
assessment of 0.40 percent of the market value of each porcine animal 
upon sale (7 CFR 1230.112). However, for purposes of collecting and 
remitting assessments, porcine animals are divided into three separate 
categories (1) feeder pigs, (2) slaughter hogs, and (3) breeding stock. 
Regulations under 7 CFR 1230.71 specifies that purchasers of feeder 
pigs, slaughter hogs, and breeding stock shall collect an assessment on 
these animals if assessments are due. Section 1230.71(b) of the Order 
further provides that for the purpose of collecting and remitting 
assessments persons engaged as a commission merchant, auction market, 
or livestock market in the business of receiving such porcine animals 
for sale on commission for or on behalf of a producer shall be deemed 
to be a purchaser.
    Section 1230.110(a) requires importers of porcine animals to pay 
U.S. Customs Service (USCS), upon importation, the assessment of 0.40 
percent of the porcine animal's declared value and importers of pork 
and pork products to pay USCS, upon importation, the assessment of 0.40 
percent of the market value of the live porcine animals from which such 
pork and pork products were produced.
    The Act and Order contain provisions for adjusting the rate of 
assessment. The Delegate Body has the responsibility to recommend the 
rate of assessment to the Department. The 2022 Delegate Body, at its 
annual meeting March 9-11, 2022, in Louisville, Kentucky, voted to 
recommend to the USDA the rate of assessment of 0.40 percent be 
decreased to 0.35 percent. In 2022, the Secretary appointed 155 members 
to serve on the Delegate Body, including 150 producers and 5 importers. 
At the Delegate Body annual meeting, 145 Delegates were present 
representing 101,017.5 valid share votes. There were 98,797.6 share 
votes cast following floor debate of the resolution for the rate 
assessment reduction. There were 93,151.3 share votes cast in favor of 
the 0.05 percent decrease in checkoff rate assessment. A simple 
majority of share votes is required to pass the resolution (7 CFR 
1230.36). The assessment rate decrease also applies to the amount of 
assessment on imported pork and pork products pursuant to the 7 CFR 
1230.110.

Methodology and Analysis

    AMS weighed the costs and benefits of the change in pork assessment 
rates, acknowledging the role the Delegate Body plays in the 
disposition of funds and its insight into the effect of an

[[Page 66537]]

assessment decrease. The cost of the assessment reduction is the 
reduced funds available for research, promotion and consumer 
information of pork and pork products and activities that strengthen 
and increase demand for lives hogs sold by producers paying the 
assessment. Economic research has shown that such research and 
promotion programs generally yield positive net returns to producers, a 
finding confirmed in the National Pork Board's own commissioned 
evaluation of the program based on data through 2020. While this 
finding would initially suggest that a reduction in the assessment 
would reduce returns to pork producers (and thus fails a cost benefit 
analysis test), AMS notes the sharp increase in pork prices in the 
intervening period as a mitigating factor to relying solely on that 
study.
    Between 2018 and 2020, the national barrows and gilt national base 
live weight equivalent price for 51-51% lean hogs was $45.69 per cwt on 
a slaughter of 131.5 million head. In 2021, the price rose 47% to 
$67.29 per cwt while slaughter only fell 2 percent to 129.0 million 
head. Together, these changes have caused checkoff revenue to increase 
41 percent between 2020 and 2021. While the reduced assessment will 
lower expected assessment revenue in future years from 2021, AMS still 
expects revenue to be greater than the 2018-2020 average in 2022 and in 
future years owing to the expected continuation of elevated prices.
    In its assessments of the costs of the final rule, AMS assumed that 
demand for hogs and pork products is unchanged in the short run by any 
reduction in promotion expenditure that may result from the reduced 
assessment. As such, AMS finds there will be no cost to the final rule 
change in terms of reduced demand for pork. AMS notes that research and 
promotion spending is likely to exhibit diminishing marginal returns, 
meaning that the large increase in promotion expenditure from the 2021 
increase in assessment revenue is unlikely to generate economic returns 
as those returns estimated from data in earlier periods, which started 
at a lower level.\3\ AMS also notes that the National Pork Board, 
subject to the Secretary's approval, determines specifically how 
assessment revenue is spent to promote pork consumption and enhance 
demand. Subsequently, the National Pork Board is also likely to know 
the point at which the highest return promotional opportunities have 
been exhausted and that additional advertising becomes ineffective. 
Based on its independent analysis of market trends and the research on 
returns to the pork checkoff program, AMS agrees that this reduction in 
assessment rate will effectuate the purposes of the Act.
---------------------------------------------------------------------------

    \3\ In the 2021 publication ``An Economic Analysis of the 
National Pork Board Checkoff Program'', Kaiser finds that benefit-
cost ratios (BCR) for expenditure components of pork assessments to 
range from 71.58 to 1.37 using data from 1976 to 2020. At the lower 
bound of that range, the 1.37 BCR value indicates that a dollar 
invested in promotion raises returns to producer by 1.37. That 
research also finds that the 90 percent lower bound for the marginal 
benefit-cost ratio is less one for the category of demand enhancing 
research (indicating negative producer returns) and between 5 and 7 
for pork advertising and non-advertising promotion. These estimates, 
however, only consider the effects of changing program expenditure 
by 1 percent. AMS believes that for some promotional activities 
funded by the checkoff the BCR may fall below one if expenditure 
increases by 41 percent as it did in 2021.
---------------------------------------------------------------------------

    AMS notes that total assessment revenue is expected to remain above 
the 2020 level despite the assessment rate reduction. On this point, 
AMS calculated the total reduction in assessment revenue as the sum of 
the reduction in domestic and foreign revenue. Between 2018 and 2020, 
about 95.6 percent of assessment revenue was from domestic assessments 
on live hogs, most of which are market hogs although all types of hogs 
pay the same assessment rate. AMS estimated the reduction in domestic 
revenue of $12.3 by multiplying 2021 domestic revenue level of $97.3 
million by the 12.5 percent reduction in the rate of assessment (i.e., 
the change in the assessment rate from 0.4 to 0.35 dollars per hundred 
weight.)
    AMS estimated the reduction in import assessment revenue using 
trade data available from the USDA Foreign Agricultural Service. This 
data shows that approximately 49 percent of assessment revenue from 
imports in 2021 was derived from live hog assessments, which, like 
domestic hogs, will see a 12.5 percent reduction in the rate of 
assessment. The remaining 51 percent of pork and processed pork 
products will see variable decreases in the rate of assessments, all of 
which are larger in magnitude than the 12.5 percent in the live hog 
rate. AMS calculated the average rate reduction for these pork and 
processed products to be 38.6 percent based on each product's average 
value share of imports between 2019 and 2021. AMS then calculated a 
change in the rate of all import assessments of 25.9 percent, 
calculated as the sum of the 49 percent revenue share for live hogs 
times the 12.5 assessment reduction plus the 51 percent revenue share 
for pork products times the 38.6 percent reduction. Applying the 
average rate of assessment to the $4.53 million in assessment revenue 
from imports in 2021, AMS found that import revenue will fall by $1.2 
million.
    The adjustment in importer assessments will bring the equivalent 
market value of live animals from which imported pork and pork products 
are derived in line with the market value of domestic porcine animals. 
Since the original rule was put in place, the wholesale-to-farm price 
spread for pork has increased from 38.7 percent in 2002 to 74 percent 
between 2019 and 2021, as report by the USDA Economic Research Service. 
Other things equal, a widening price spread will cause assessments on 
finished wholesale products to increase relative to hogs. This rule 
reduces the assessment rate for imported processed products by 38.6 
percent on average but only 12.5 percent for live hogs.
    This is not the first reduction in assessment rate for this 
program. As mentioned above, the program was funded by an initial 
assessment rate of 0.25 percent. The rate was increased to 0.35 percent 
effective December 1, 1991 (56 FR 51635) and then to 0.45 percent 
effective September 3, 1995 (60 FR 29962). Further, the rate was 
decreased to 0.40 percent effective September 30, 2002 (67 FR 58320). 
The import assessments were decreased by five-hundredths to seven-
hundredths of a cent per pound effective April 2, 2004, to reflect a 
decrease in the 2002 average price for domestic barrows and gilts (69 
FR 9924).
    From 2012 to current, working off a comparable rate decrease, the 
Board has continued to build industry initiatives that have long-term 
return on investment impact for pork producers. Over the years, the 
Board has initiated several major projects that continue to add value 
to the industry regardless of budget such as building trust and adding 
value through a positive image of US Pork, establishing US Pork as the 
global leader in sustainability agriculture, preventing and preparing 
for foreign animal diseases, and strengthening state and industry 
partnerships to build support that keeps people, pigs and the planet as 
leading fundamentals. Even with the rate reduction, AMS has no reason 
to believe that the Board cannot effectively continue its goal to 
develop and expand markets for pork and pork products by funding 
promotion, research, and consumer information initiatives.
    Further, over the past 10 years the National Pork Board has 
averaged producer checkoff revenue of $80.6 million. Even with an 
estimated $13.5 million ($12.3 million of that decrease

[[Page 66538]]

deriving from reduced domestic assessments and $1.2 million deriving 
from reduced importer assessments) reduction in assessment revenue, the 
total assessment revenue will continue to fall above the last 10-year 
average assessment revenue.
    AMS assumes that the reduction in promotional spending from the new 
rates will have a negligibly small effect on demand, especially given 
the still substantial increase in promotion spending above historic 
levels. For this reason, the costs of the rule will be small as well. 
The benefits of the rule, however, will be the direct saving to 
producers of $13.5 million in reduced assessment payments. Together, 
AMS assesses that the benefits to this rule change will exceed its 
costs.

Comments

    The proposed rule describing the decrease in rate of assessment of 
market value of live porcine animals and assessment per pound due on 
imported pork and pork products was published on July 20, 2022, in the 
Federal Register (87 FR 43222). The 30-day public comment period closed 
on August 19, 2022. The Department received a total of 3 comments. Two 
comments did not support the rate decrease but instead recommended 
switching to plant-based farming or diet. The third comment was 
submitted by 27 state associations supporting the assessment rate 
decrease and encouraging the Final Rule be effective January 1, 2023, 
to allow appropriate time to adjust processes for collecting checkoff 
funds.
    USDA carefully considered the comments and the recommendation of 
the Delegate Body and determined that a decrease in the assessment rate 
would effectuate the purposes of the Act. This action lessens the 
assessment burden on producers and importers. The effective date of 
January 1, 2023 gives the Board ample time to communicate this change 
and will not burden those that remit pork checkoff assessments. This 
final rule adopts the decrease in the assessment rate from 0.40 percent 
of market value of porcine animals to 0.35 percent as proposed and 
decreases the amount of assessment per pound due on imported pork and 
pork products.

List of Subjects in 7 CFR Part 1230

    Administrative practice and procedure, Advertising, Agriculture 
research, Meat and meat products, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service amends 7 CFR part 1230 as follows:

PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION

0
1. The authority citation for 7 CFR part 1230 continues to read as 
follows:

    Authority:  7 U.S.C. 4801-4819.

0
2. Section 1230.110 is revised to read as follows:


Sec.  1230.110  Assessments on imported pork and pork products.

    (a) The following Harmonized Tariff Schedule (HTS) categories of 
imported live porcine animals are subject to assessment at the rate 
specified.

                        Table 1 to Paragraph (a)
------------------------------------------------------------------------
                                        Article
      Live porcine animals            description         Assessment
------------------------------------------------------------------------
0103.10.0000....................  Purebred breeding   0.35 percent
                                   animals.            Customs Entered
                                                       Value.
0103.91.00......................  Other: Weighing
                                   less than 50 kg
                                   each.
0103.91.0010....................  Weighing less than  0.35 percent
                                   7 kg each.          Customs Entered
                                                       Value.
0103.91.0020....................  Weighing 7 kg or    0.35 percent
                                   more but less       Customs Entered
                                   than 23 kg each.    Value.
0103.91.0030....................  Weighing 23 kg or   0.35 percent
                                   more but less       Customs Entered
                                   than 50 kg each.    Value.
0103.92.00......................  Weighing 50 kg or
                                   more each.
0103.92.0010....................  Imported for        0.35 percent
                                   immediate           Customs Entered
                                   slaughter.          Value.
0103.92.0090....................  Other.............  0.35 percent
                                                       Customs Entered
                                                       Value.
------------------------------------------------------------------------

    (b) The following HTS categories of imported pork and pork products 
are subject to assessment at the rates specified.

                                            Table 2 to Paragraph (b)
----------------------------------------------------------------------------------------------------------------
                                                                                            Assessment
           Pork and pork products                    Article description         -------------------------------
                                                                                     Cents/lb        Cents/kg
----------------------------------------------------------------------------------------------------------------
0203.......................................  Meat of swine, fresh, chilled, or frozen: Fresh or chilled:
                                            --------------------------------------------------------------------
0203.11.0000...............................  Carcasses and half-carcasses.......            0.15        0.390920
0203.12.1010...............................  Processed hams and cuts thereof,               0.15        0.390920
                                              with bone in.
0203.12.1020...............................  Processed shoulders and cuts                   0.15        0.390920
                                              thereof, with bone in.
0203.12.9010...............................  Other hams and cuts thereof, with              0.15        0.390920
                                              bone in.
0203.12.9020...............................  Other shoulders and cuts thereof,              0.15        0.390920
                                              with bone in.
0203.19.2010...............................  Processed spare ribs...............            0.18        0.457058
0203.19.2090...............................  Processed other....................            0.18        0.457058
0203.19.4010...............................  Bellies............................            0.15        0.390920
0203.19.4090...............................  Other..............................            0.15        0.390920
0203.21.0000...............................  Frozen carcasses and half-carcasses            0.15        0.390920
0203.22.1000...............................  Frozen-processed hams, shoulders,              0.15        0.390920
                                              and cuts thereof, with bone in.
0203.22.9000...............................  Frozen-other hams, shoulders, and              0.15        0.390920
                                              cuts thereof, with bone in.
0203.29.2000...............................  Frozen processed other.............            0.18        0.457058
0203.29.4000...............................  Frozen other:......................            0.15        0.390920
                                            --------------------------------------------------------------------

[[Page 66539]]

 
0206.......................................  Edible offal of bovine animals, swine, sheep, goats, horses, asses,
                                              mules or hinnies, fresh, chilled, or frozen:
                                            --------------------------------------------------------------------
0206.30.0000...............................  Of swine, fresh or chilled.........            0.15        0.390920
0206.41.0000...............................  Of swine, frozen: Livers...........            0.15        0.390920
0206.49.0000...............................  Of swine, frozen: Other:...........            0.15        0.390920
                                            --------------------------------------------------------------------
0210.......................................  Meat and edible meat offal, salted, in brine, dried or smoked;
                                              edible flours and meals of meat or meat offal:
                                            --------------------------------------------------------------------
0210.11.0010...............................  Meat of swine: Hams and cuts                   0.15        0.390920
                                              thereof, with bone in.
0210.11.0020...............................  Meat of swine: Shoulders and cuts              0.15        0.390920
                                              thereof, with bone in.
0210.12.0020...............................  Meat of swine: Bellies (streaky)               0.15        0.390920
                                              and cuts thereof, Bacon.
0210.12.0040...............................  Meat of swine: Bellies (streaky)               0.15        0.390920
                                              and cuts thereof, Other.
0210.19.0010...............................  Meat of swine: Canadian style bacon            0.18        0.457058
0210.19.0090...............................  Meat of Swine: Other...............            0.18        0.457058
                                            --------------------------------------------------------------------
1601.......................................  Sausages and similar products, of meat, meat offal or blood; food
                                              preparations based on these products:
                                            --------------------------------------------------------------------
1601.00.2010...............................  Pork canned........................            0.23        0.567288
1601.00.2090...............................  Pork other.........................            0.23        0.567288
                                            --------------------------------------------------------------------
1602.......................................  Other prepared or preserved meat, meat offal or blood:
                                            --------------------------------------------------------------------
1602.41.2020...............................  Of swine: Boned and cooked and                 0.25        0.611380
                                              packed in airtight containers
                                              holding less than 1 kg.
1602.41.2040...............................  Of swine: Other boned and cooked               0.25        0.611380
                                              and packed in airtight containers.
1602.41.9000...............................  Of swine: Other....................            0.15        0.390920
1602.42.2020...............................  Of swine: Shoulders and cuts                   0.25        0.611380
                                              thereof: Boned and cooked and
                                              packed in airtight containers
                                              holding less than 1 kg.
1602.42.2040...............................  Of swine: Shoulders and cuts                   0.25        0.611380
                                              thereof: Other boned and cooked
                                              and packed in airtight containers.
1602.42.4000...............................  Of swine: Other shoulders and cuts             0.15        0.390920
                                              thereof.
1602.49.2000...............................  Of swine: Other, including                     0.23        0.567288
                                              mixtures: Not containing cereals
                                              or vegetables: Boned and cooked
                                              and packed in air-tight containers.
1602.49.4000...............................  Of swine: Other, including                     0.18        0.457058
                                              mixtures: Not containing cereals
                                              or vegetables: Other.
1602.49.9000...............................  Of swine: Other, including                     0.18        0.457058
                                              mixtures: Other.
----------------------------------------------------------------------------------------------------------------



0
3. Section 1230.112 is revised to read as follows:


Sec.  1230.112  Rate of assessment.

    In accordance with Sec.  1230.71(d), the rate of assessment shall 
be 0.35 percent of market value.

Melissa Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2022-23762 Filed 11-3-22; 8:45 am]
BILLING CODE P


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