Agricultural Marketing Service, Specialty Crops Program, Specialty Crops Inspection Division

Terminal Market Travel Charge Policy (July 2020)

SCI Division Administration Series

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TERMINAL MARKET TRAVEL CHARGE POLICY

The following guidance applies to charges to applicants for travel-related expenses by Federal and 

Federal/State terminal market inspection offices, and prescribes the procedures to be used in 

calculating travel charges for typical non-contract service situations. 

Lot fees (carlot and less-than-carlot fees) will be set to recover the cost of on-site inspection service 

time, supervision and certificate processing. In addition to the lot fees, other significant costs 

incurred in the performance of an inspection will be charged directly to the applicant requesting the 

inspection service whenever practical.

The Terminal Market Travel Charge Policy prescribes when and how to bill applicants for travel 

charges; it does not in any way determine mileage, per diem, or other travel reimbursements paid to 

inspectors. Travel reimbursements should be determined in accordance with AMS, SCI Division, or 

State directives without consideration as to whether the expense has been billed to an applicant.

Appropriate travel charges will be assessed for all sites serviced except when specifically noted 

within a service contract.

PROCEDURES FOR CHARGING TRAVEL EXPENSES WHEN TRAVEL OCCURS 

WITHIN THE AREA OF COVERAGE ENCOMPASSED BY A LOCAL TERMINAL 

MARKET INSPECTION OFFICE

Charges for travel expenses must be determined in accordance with the procedures below when 

travel occurs within the area of coverage encompassed by a local terminal market inspection office:

Travel by Employee-Operated GOV or Approved-Use POV

• Determine Standard Service Round-Trip Mileage for Each Inspection Service Site 

For each terminal market inspection office, the Officer-In-Charge or State Program Official, 

as appropriate, must create and maintain a list of the standard service round-trip mileage for 

each commonly-serviced inspection site and provide a copy of such to each employee 

providing inspection service. The Officer-in-Charge or State Program Official will establish 

the standard service round-trip mileage by determining the actual round-trip mileage for 

direct-route travel between the local terminal market inspection office and the inspection 

service site, subject to the approval of the Regional Branch Chief, or in the case of FederalState offices, the State Program Official. 
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• Billable Mileage Rate 

The billable mileage rate was determined by adding the Federal cost per mile for privatelyowned vehicle reimbursement to the Federal cost for inspector salary and benefits during 

travel time (the employee hourly rate divided by 40 miles, which assumes an average speed 

of 40 miles per hour). The current rate is posted in the SCI General Market Manual under 

Appendix II-Schedule of User Fees.

• Computing Standard Travel Charges

For each visit to an inspection service site involving the use of an employee-operated GOV 

or approved-use POV, the travel charge will be the standard service mileage for that site 

multiplied by the billable mileage rate. 

If multiple services for the same applicant are performed during the same inspection service 

visit, travel charges must be divided equally among all certificates. 

When multiple applicants are serviced at the same inspection service site (e.g., a central 

market location), each applicant will be charged 1⁄2 (50%) of the standard service round-trip 

mileage. 

• Premium Time Travel

In addition to the standard travel charge, there will be an additional charge for travel time 

performed outside of an employee’s regularly scheduled work hours (i.e., during a Federal 

holiday or overtime work period). To determine this additional charge for a holiday, divide 

the roundtrip standard service mileage for that inspection service site by 40 miles per hour 

(mph), round the result up to the nearest quarter-hour and then multiply this result by the 

premium time hourly rate. For an overtime period, do the same but divide only the one-way

standard service mileage. 

Federal employees must report all premium pay hours earned on their Time and Attendance 

report and a Premium Time—Premium Pay and Applicant Charges Log (Appendix II). The 

Premium Time—Premium Pay and Applicant Charges Log will allow supervisors to 

compare the premium time charged to an applicant with what an employee claims on their 

Time and Attendance report. 

• Charging Other Direct Employee-Operated GOV or Approved-Use POV Costs

Other direct travel costs such as tolls and parking fees associated with an employee-operated 

GOV or approved-use POV will be charged to recover the actual expense incurred. 

If multiple inspections for the same applicant are performed during the same inspection 

service visit, other direct travel costs must be divided equally among 

all certificates. 
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If multiple applicants are serviced at the same inspection service site during the same visit, 

other direct travel costs must be divided equally among all applicants.

See examples below for computing charges for the three common travel situations.

1. Travel During Regular Work Hours

Travel Expense: Standard service round-trip mileage x current billable mileage rate 

Site A: 30 miles x current billable mileage rate

Site B: 34 miles x current billable mileage rate 

Site C: 6 miles x current billable mileage rate 

Site D: 150 miles x current billable mileage rate 

2. When the Entire Round-Trip Travel Involves Premium Time Travel

Travel Expense: Standard service round-trip mileage x current billable mileage rate

Premium Time Travel: Rounded up to the nearest quarter hour as calculated below:

Site A: 30 miles x current billable mileage rate and 0.75 hours at the appropriate premium 

time rate (30 miles divided by 40 mph is 0.75 hours)

Site B: 34 miles x current billable mileage rate and 1 hour at the appropriate premium time

rate (34 miles divided by 40 mph rounds up to 1 hour)

Site C: 6 miles x current billable mileage rate and 0.25 hours at the appropriate premium 

time rate (6 miles divided by 40 mph rounds up to 0.25 hours)
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Site D: 150 miles x current billable mileage rate and 3.75 hours at the appropriate premium 

rate (150 miles divided by 40 mph is 3.75 hours)

3. When Only the Return-Trip (not the Round-Trip) Travel Is During an Overtime Period

Travel Expense: Standard service round-trip mileage x current billable mileage rate

Premium Time Travel: Rounded up to the nearest quarter hour as calculated below:

Site A: 15 miles x current billable mileage rate and 0.50 hours at the appropriate premium 

rate (15 miles divided by 40 mph rounds up to 0.50 hours)

Site B: 17 miles x current billable mileage rate and 0.50 hours at the appropriate premium 

rate (17 miles divided by 40 mph rounds up to 0.50 hours)

Site C: 3 miles x current billable mileage rate and 0.25 hours at the appropriate premium rate

(3 miles divided by 40 mph rounds up to 0.25 hours)

Site D: 75 miles x current billable mileage rate and 2 hours at the appropriate premium rate 

(75 miles divided by 40 mph rounds up to 2 hours)

Travel by Common Carrier

When an employee travels via common carrier, all related direct travel costs (e.g., common carrier 

ticket, baggage fees, taxi, car rental, tolls, etc.) must be charged.

• In addition, the actual time in travel status will be charged as follows:

o Travel Time: Charge actual travel time from official duty station, last temporary duty 

point or residence, as appropriate, to the inspection service site rounded up to the 

nearest quarter hour at the hourly-based inspection service rate.

o Premium Time Travel: Travel performed outside of an employee’s regularly 

scheduled work hours (i.e., overtime work or work performed on a holiday) rounded 

up to the nearest quarter hour at the appropriate premium time rate.

Example of Computing Common Carrier Travel Time and Premium Time Travel: Employee travels 

by common carrier for a total of 3 hours to and from site Y for a Quality and Condition inspection on 

a lot of tomatoes. The 1.5 hours of return travel are performed during an overtime period. Using 

current hourly-based inspection service rate of $85.00/hour and the premium time lot inspectionbased overtime rate of $43.00/hour, the total travel time charged in this example would be:

Travel Time: 3 hours x current hourly-based inspection service rate = $255.00

Overtime Travel: 1.5 hours x current premium time lot overtime rate = $64.50
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Total Travel Time Charged: $319.50*

*This is in addition to all related direct costs and the standard lot inspection fee.

Per Diem Charges to Applicants

Applicants must be notified of any likely per diem charge before providing inspection service. Per 

diem charges will be determined as follows:

• Federal Employees

When an employee incurs per diem expenses while traveling within the area of coverage 

encompassed by a local terminal market inspection office, the appropriate U.S. General 

Services Administration (GSA) per diem rate will apply. Any related lodging charges, hotel 

taxes, parking fees, etc., will also be charged as appropriate.

• Federal-State Employees

When a Federal-State employee incurs per diem expenses when traveling within the area of 

coverage encompassed by a local terminal market inspection office, the appropriate State per 

diem rate will apply. Any related lodging charges, hotel taxes, parking fees, etc., will also be 

charged as appropriate.

PROCEDURES FOR CHARGING TRAVEL EXPENSES WHEN TRAVEL OCCURS 

OUTSIDE THE AREA OF COVERAGE ENCOMPASSED BY A LOCAL TERMINAL 

MARKET INSPECTION OFFICE

When an employee is assigned to perform work at a temporary duty station (e.g., performing a relief 

assignment in another terminal market office, etc.), en route travel expenses will not be charged to 

an applicant. Once the employee is at the temporary duty station, the PROCEDURES FOR 

CHARGING TRAVEL EXPENSES WHEN TRAVEL OCCURS WITHIN THE AREA OF 

COVERAGE ENCOMPASSED BY A LOCAL TERMINAL MARKET INSPECTION OFFICE 

will be followed.

IMPLEMENTING THE TERMINAL MARKET TRAVEL CHARGE POLICY

• Informing Applicants of the Terminal Market Travel Charge Policy 

New applicants can be informed of the Terminal Market Travel Charge Policy by sending the 

sample letter in Appendix I. Prior to informing an applicant, any required approval of 

standard charges must be obtained from the Regional Branch Chief, or in the case of FederalState offices, the State Program Official.

• Inquiries Regarding Atypical Travel Situations 
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Questions about standard travel charges for atypical travel situations should be directed by 

the Officer-In-Charge to the Regional Branch Chief, or in the case of Federal-State offices, 

the State Program Official.
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APPENDIX I – SAMPLE TERMINAL MARKET TRAVEL CHARGE POLICY LETTER

Date

Name

Title, Company

Address

City, State and Zip

Dear (Trade Member):

The USDA Specialty Crops Inspection Division and cooperating agencies are dedicated to providing 

the highest quality inspection service at a fair and equitable cost to all users. To ensure that travel 

charges for inspection services effectively cover the cost of the actual travel and are consistently 

applied to all applicants, the Division has a Terminal Market Travel Charge Policy for all applicants 

receiving terminal market inspection service.

Under the Terminal Market Travel Charge Policy, travel time and mileage for inspectors using 

ground transportation will be charged according to a standardized number of round-trip miles 

between the inspection site and the local inspection office. This policy establishes a standard charge 

of $X.XX per mile for travel expenses, which allows users to determine the travel expenses they will 

be assessed, if any, in advance of each visit by the inspection service.

Other travel costs, such as tolls, will be charged to recover actual expenses only when such expenses 

are incurred. If multiple inspections are performed for you during the same visit, travel charges will 

be divided equally among all certificates. When multiple applicants are serviced at the same 

inspection service site, each applicant will be charged 1⁄2 (50%) of the standard service round-trip 

mileage. 

If you have any questions, please contact this office at <Area code & phone number> for further 

assistance.

Sincerely,

Officer-in-Charge

[Specific] Area Office

Specialty Crops Inspection Division
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APPENDIX II – PREMIUM TIME – PREMIUM PAY AND APPLICANT CHARGES LOG

Electronic version of the Premium Time – Premium Pay and Applicant Charges Log
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