Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Rules and Regulations 50241

feed. Price levels for sales of edible

almonds to normal market outlets vary

significantly from year to year

depending on available supplies and

market conditions and can range from

$1.00–$3.00 per pound. If inedible

almonds were allowed to be sold in

normal market channels, consumer and

buyer satisfaction would likely decrease

because poor quality almonds were

being made available. Buyers would

likely purchase fewer almonds and

demand for almonds would thus

decline, which would in turn decrease

returns to growers and handlers, both

large and small.

Thus, this rule will add flexibility to

the rules and regulations and help

ensure that the integrity of the order’s

quality control provisions is

maintained. As previously mentioned,

the Board estimates that for the past 3

years, about 3.05 percent of the almonds

received by handlers from growers were

inedible. The Board’s recommended 10

percent disposition obligation for lots

where an inedible weight was not

determined exceeds historical averages.

This rule also provides handlers an

opportunity to maintain compliance

with order requirements.

An alternative to this change would

be to not incorporate these options into

the order’s administrative rules and

regulations. Thus, in cases where an

inedible disposition obligation was

inadvertently not obtained, such

handlers would be considered to be out

of compliance with order requirements

and subject to penalties under the Act.

However, the Board determined that it

would be in the industry’s best interest

to provide alternative methods of

determining inedible disposition

obligations. This will allow handlers

additional options in the rules and

regulations to remain in compliance

with order requirements and the

integrity of the order’s incoming quality

control program will still be maintained.

This rule will not impose any

additional reporting or recordkeeping

requirements on either small or large

almond handlers. As with all Federal

marketing order programs, reports and

forms are periodically reviewed to

reduce information requirements and

duplication by industry and public

sectors. In accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. Chapter 35), the information

collection requirements that are

contained in this rule have been

previously approved by the Office of

Management and Budget (OMB) and

have been assigned OMB No. 0581–

0071. In addition, as noted in the initial

regulatory flexibility analysis, the

Department has not identified any

relevant Federal rules that duplicate,

overlap or conflict with this rule.

Further, the Board’s meeting was

widely publicized throughout the

almond industry and all interested

persons were invited to attend the

meeting and participate in Board

deliberations. Like all Board meetings,

the May 9, 1997, meeting was a public

meeting and all entities, both large and

small, were able to express their views

on this issue.

Also, the Board has a number of

appointed committees to review certain

issues and make recommendations to

the Board. The Board’s Quality Control

Committee met on April 23, 1997, and

discussed this inedible disposition

obligation issue in detail. That meeting

was also a public meeting and both large

and small entities were able to

participate and express their views.

Finally, interested persons were invited

to submit information on the regulatory

and information impacts of this action

on small businesses.

An interim final rule concerning this

action was issued by the Department on

July 8, 1997, and published in the

Federal Register on July 14, 1997 (62 FR

37485). Copies of the rule were mailed

or sent via facsimile to all almond

handlers. Finally, a copy of the rule was

made available through the Internet by

the Office of the Federal Register. No

comments were received in response to

the interim final rule.

After consideration of all relevant

material presented, including the

Board’s recommendation, and other

information, it is found that finalizing

this interim final rule, without change,

as published in the Federal Register (62

FR 37485, July 14, 1997), will tend to

effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 981

Almonds, Marketing agreements,

Nuts, Reporting and recordkeeping

requirements.

PART 981—ALMONDS GROWN IN

CALIFORNIA

Accordingly, the interim final rule

amending 7 CFR 981 which was

published at 62 FR 37485 on July 14,

1997, is adopted as a final rule without

change.

Dated: September 19, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–25412 Filed 9–24–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 999

[Docket No. FV97–999–1 IFR]

Specialty Crops; Import Regulations;

Extension of Reporting Period for

Peanuts Imported Under 1997 Import

Quotas

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule removes the 23-day

reporting requirement and establishes a

new date for importers to report

disposition of peanuts imported under

1997 peanut import quotas. This rule

also establishes a 120-day reporting

period for any peanuts imported after

the 1997 import quotas are filled. The

23-day reporting period established in

the import regulation is impractical

given the volume of peanuts imported

under January 1 and April 1 peanut

import quotas. This is an administrative

change for the 1997 peanut quota

periods only. This rule is deemed

necessary by the Agricultural Marketing

Service (AMS) to provide peanut

importers with sufficient time to meet

the quality and reporting requirements

of the peanut import regulation.

DATES: Effective Setpember 29, 1997.

Comments received by October 27, 1997

will be considered prior to issuance of

a final rule.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this action. Comments must

be sent in triplicate to the Docket Clerk,

Fruit and Vegetable Division, AMS,

USDA, P.O. Box 96456, room 2525–S,

Washington, DC 20090–6456; fax 202–

720–5698. Comments should reference

the docket number and the date and

page number of this issue of the Federal

Register and will be made available for

public inspection in the Office of the

Docket Clerk during regular business

hours.

FOR FURTHER INFORMATION CONTACT: Tom

Tichenor, Senior Marketing Specialist,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, room

2525–S, Washington, DC 20090–6456;

tel: (202) 720–6862; fax (202) 720–5698.

Small businesses may request

information on compliance with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, room 2525–S, P.O. Box
50242 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Rules and Regulations

96456, Washington, DC 20090–6456;

telephone (202) 720–2491, Fax: (202)

720–5698.

SUPPLEMENTARY INFORMATION: This

interim final rule amends the peanut

import regulation published in the June

19, 1996, issue of the Federal Register

(61 FR 31306, 7 CFR part 999.600),

which regulates the quality of imported

peanuts. An amendment to the

regulation was issued December 31,

1996 (62 FR 1249, January 9, 1997). The

import regulation is effective under

subparagraph (f)(2) of section 108B of

the Agricultural Act of 1949 (7 U.S.C.

1445c–3), as amended November 28,

1990, and August 10, 1993, and section

155 of the Federal Agriculture

Improvement and Reform Act of 1996 (7

U.S.C. 7271). Those statutes provide

that the Secretary of Agriculture

(Secretary) shall require that all peanuts

in the domestic and export markets fully

comply with all quality standards under

Marketing Agreement No. 146 (7 CFR

part 998) (Agreement), issued pursuant

to the Agricultural Marketing

Agreement Act of 1937, as amended (7

U.S.C. 601–674).

This rule has been determined not

significant for purposes of Executive

Order 12866 and therefore has not been

reviewed by the Office of Management

and Budget.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Under the regulations,

disposition of imported peanuts must be

reported to AMS within an established

time period. This rule changes that time

period and is intended to apply to

Mexican peanuts imported from January

1, 1997, to December 31, 1997, and to

Argentine and ‘‘other country’’ peanuts

imported from April 1, 1997, to March

31, 1998. This rule will not preempt any

State or local laws, regulations, or

policies, unless they present an

irreconcilable conflict with this rule.

There are no administrative procedures

which must be exhausted prior to any

judicial challenge to the provisions of

this rule.

This interim final rule amends, for the

1997 peanut quota year, a provision in

§ 999.600 of the regulations governing

imported peanuts (7 CFR part 999—

Specialty Crops; Import Regulations).

Section 999.600 establishes minimum

quality, identification, certification, and

safeguard requirements for foreign

produced farmers stock, shelled and

cleaned-inshell peanuts presented for

importation into the United States. The

quality requirements are the same as

those specified in § 998.100 Incoming

quality regulation and § 998.200

Outgoing quality regulation of the

Agreement.

Discussion

The import regulation was finalized

June 19, 1996 (61 FR 31306). At that

time, three duty-free peanut quotas for

1996 had been filled and no peanuts

were entered under duty for the

remainder of 1996. Therefore, the

peanut import regulation had its first

practical application with the opening

of the Mexican peanut quota on January

1, 1997.

Under the safeguard procedures,

importers are required to report to AMS

disposition of all imported peanuts.

Paragraph (f)(3) of the regulations sets a

23 day period for filing certificates of

inspection and aflatoxin testing. Sixty

day extensions are possible, but requests

for these must be filed within the 23-day

reporting period. The reporting period

and procedures for extension were

established with the expectation that

three duty-free quotas would fill

gradually during the quota year.

However, this did not occur. The

Mexican quota of 8.1 million pounds

closed approximately 5 weeks after the

January 1, 1997 opening. The Argentine

quota of 73.5 million pounds and the

‘‘other country’’ quota of 13.3 million

pounds filled immediately at 12:00

noon on opening day, April 1, 1997.

Importers’ applications to enter peanuts

under the Argentine and ‘‘other

country’’ quotas greatly exceeded the

quota volumes for these countries. After

pro-rata distribution of those quotas

(based on the total peanut volume in

each importer’s entry applications), the

Customs Service set April 15 as the

entry date for approximately 86.8

million pounds of peanuts under the

two quotas.

Because of the large volume of

peanuts simultaneously released on

April 15, 1997, importers have been

unable to meet the 23-day reporting

deadline for many of their imported

lots. Obstacles to expedient certification

of such large volumes of imported

peanuts included: (1) Logistics of

moving containers out of some

congested port areas and into storage;

(2) arranging for sampling and

inspection, and receiving certifications;

and (3) arranging for and transporting

failing lots to facilities for

reconditioning and recertification.

Therefore, this rule establishes a new

reporting date of November 1, 1997, for

reporting disposition of all peanuts

entered under the 1997 import quotas.

It also provides for an extension of the

reporting period beyond November 1.

Requests for extensions must be made in

writing and include the Customs

Service entry number, container and lot

information for the unreported peanut

lot(s), and the reason for delay in

meeting the November 1 reporting date.

AMS will evaluate each request on a

case-by-case basis.

Peanuts may continue to be imported

into the United States after the import

quotas are closed (with payment of tariff

charges). Therefore, this rule also

provides that disposition of any peanuts

imported after the 1997 import quotas

close must be reported within 120 days

after the peanuts are entered by the

Customs Service.

As a compliance measure, paragraph

(f)(4) provided that the Secretary would

ask the Customs Service to demand

redelivery of peanut lots not reported as

meeting the requirements of the import

regulation. Because this rule extends the

reporting period beyond the Customs

Service 30-day redelivery demand

period, the first three sentences in

paragraph (f)(4) are not applicable for

peanuts entered under the three 1997

import quotas. Those sentences are

therefore removed in this rulemaking.

The remainder of paragraph (4)

regarding failure to comply with the

import regulation and falsification of

reports is retained.

To help ensure a practicable and

workable peanut import regulation, the

procedures in the regulation will be

reviewed after the 1997 entries have

been closed out. Thus, paragraphs (f)(3)

and (f)(4) may be further amended, if

necessary, prior to opening of the 1998

peanut import quotas.

These changes do not affect the

stamp-and-fax procedure established in

paragraph (f)(1) of the safeguard

provisions. That procedure ensures

notification of the Federal or FederalState Inspection Service of applications

to import peanuts. This rule also does

not change the safeguard requirement

that all imported lots must be reported.

Pursuant to paragraph (f)(1), all

imported peanuts must be reported to

AMS—including those peanut lots that

meet import requirements. Paragraph

(f)(2) provides that the quality and

aflatoxin certifications and other

documentation must be sent by regular

mail to: Marketing Order

Administration Branch, F&V, AMS,

USDA, P.O. Box 96456, Room 2525–S,

Washington, D.C. 20090–6456,

‘‘Attention: Report of Imported

Peanuts.’’ Overnight or express mail

reports may be sent to Marketing Order

Administration Branch, F&V, AMS,

USDA , 14th and Independence Avenue,

S.W., Room 2525–S, Washington, D.C.

20250, ‘‘Attention: Report of Imported

Peanuts.’’
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Rules and Regulations 50243

Regulatory Flexibility Analysis

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this interim final rule on small entities.

Accordingly, AMS has prepared this

initial regulatory flexibility analysis

relevant to this rulemaking.

The purpose of the RFA is to fit

regulatory actions to the scale of

business subject to such actions in order

that small businesses will not be unduly

or disproportionately burdened. AMS

records for 1997 show that

approximately ten importers of peanuts

were large handlers of domestically

grown peanuts and six were importers

of general food commodities, some of

whom may be small entities. Small

agricultural service firms, which

include importers, have been defined by

the Small Business Administration (13

CFR 121.601) as those whose annual

receipts are less than $5 million.

Although small business entities may be

engaged in the importation of peanuts,

the majority of the importers are large

business entities.

This rule extends for the 1997 quota

periods only the time period for

importers to meet import requirements

for each lot of imported peanuts and file

reports on the disposition of those

peanuts. The reporting requirements are

an integral part of the safeguard

procedures specified in the import

regulation, which is required by statute.

The requirements are applied uniformly

to small as well as large importers.

The previous reporting time period

was 23 days. The new reporting time

period ends on November 1, 1997. This

change represents an increase,

depending on date of entry of a peanut

lot, of up to 280 days for Mexican

peanut imports (entered on January 1)

and 175 days for Argentine and ‘‘other

country’’ peanuts (all of which were

entered on April 15). The rule also

extends the reporting period for all

other peanut entries during the 1997

quota year from 23 days to 120 days.

The additional time to meet

requirements should enable importers to

more efficiently manage movement and

disposition of their imported peanuts.

It is not possible to estimate cost

savings that might result from any

increased efficiency of operations

because of this action. Extension

requests, when properly requested,

already have been granted by AMS. The

rule will benefit importers of large

quantities of peanuts by relieving the

time pressure to have multiple lots

certified, and many lots reconditioned,

within a very short time period. The

rule also will benefit small importers

who do not have peanut handling

resources and must contract with

remillers and blanchers to recondition

failing peanut lots. Records indicate that

some importers, including small

importers, are outside the domestic

peanut production area, and must

transport failing lots long distances for

reconditioning.

Alternative reporting time periods

were considered by AMS. For the

purposes of clarity, AMS believes that a

single date, applicable to all 1997

entries under the quota is less confusing

than 60 or 90 days from the release date

of a peanut lot by the Customs Service.

Sixty days are considered too short, as

some peanut lots entered on April 15

are being inspected for the first time

more than two months later. Also,

necessary reconditioning efforts, with

appropriate sampling and re-inspections

after each attempt may take longer than

60 days. Extensions may be requested

for individual lots not certified by the

end of their applicable reporting period.

Experience shows that few, if any,

peanuts will be imported after the

quotas are filled. However, any such

imports would be handled in a more

routine manner and normal pace than

when the great volumes are released

simultaneously on quota opening days.

Thus, the 120-day requirement for any

peanuts imported after the quotas are

filled is deemed reasonable by AMS.

For these reasons, AMS has

determined that this action will be

beneficial to all importers, both large

and small.

Paperwork Reduction Act

In accordance with the Paperwork

Reduction Act of 1980 (44 U.S.C.

Chapter 35) as amended in 1995, the

information requirements contained in

this rule was approved by the Office of

Management and Budget (OMB) on

September 3, 1996, and assigned OMB

number 0581–0176. This rule does not

establish new reporting or

recordkeeping requirements. The

current annual reporting burden for

importers is estimated at 12 hours.

Those affected by this rule have already

reported entries and requested

extensions of deadlines for reporting

peanuts entered under the 1997 import

quotas. Further, because no additional

1997 peanut imports are expected, there

should be no need to file additional

reports other than the final report of all

entries, which is included in the

approved 12 hour reporting burden.

Paragraph (f)(3) of the rule is revised

for the 1997 import periods only. All

certificates and other documents

reporting the disposition of passing, as

well as failing and reconditioned,

peanut lots must be reported to AMS by

November 1, 1997. This reporting date

applies to only AMS’ peanut import

regulation and does not supersede other

reporting dates for those peanuts that

may be established by the Customs

Service or other agencies. For peanuts

imported after the quotas are filled, this

rule extends the reporting period from

23 to 120 days, thus, reducing or

eliminating the burden of requesting an

extension of the reporting period.

Interested persons are invited to

submit information on the regulatory

and informational impacts of this action

on small businesses. This rule also

invites comments on an extension in the

time period for reporting dispositions of

imported peanuts. Written comments

timely received will be considered prior

to finalization of this rule.

Pursuant to 5 U.S.C. 553, it is found

and determined upon good cause that it

is impracticable, unnecessary, and

contrary to the public interest to give

preliminary notice prior to putting this

rule into effect and that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register

because: (1) This rule relaxes the

reporting requirements of the import

regulation; (2) some importers of 1997

import quota peanuts have already been

authorized 60-day extensions of the

reporting period; and (3) this rule

provides a 30-day comment period and

all written comments timely received

will be considered prior to finalization

of this rule.

List of Subjects in 7 CFR Part 999

Dates, Food grades and standards,

Hazelnuts, Imports, Nuts, Peanuts,

Prunes, Raisins, Reporting and

recordkeeping requirements, Walnuts.

For the reasons set forth in the

preamble, 7 CFR Part 999 is amended as

follows:

PART 999—SPECIALTY CROPS;

IMPORT REGULATIONS

1. The authority citation for 7 CFR

part 999 is revised to read as follows:

Authority: 7 U.S.C. 601–674, 7 U.S.C.

1445c–3, and 7 U.S.C. 7271.

2. In § 999.600, paragraphs (f)(3) and

(f)(4) are revised to read as follows:

§ 999.600 Regulation governing imports of

peanuts.

* * * * *

(f) * * *

(3) Certificates and other

documentation showing disposition of

peanuts imported under 1997 import

quotas, consistent with the requirements
50244 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Rules and Regulations

of this section, must be filed by

November 1, 1997. Disposition of

peanuts imported in excess of the 1997

peanut import quotas must be filed

within 120 days of the peanuts’ entry by

the Customs Service. Extension of these

reporting periods must be granted by the

AMS on a case by case basis upon a

showing that such extension would be

justified. Requests for extension must be

submitted in writing to the Marketing

Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2525–S, Washington,

DC 20090–6456, Attn: Peanut Imports or

faxing the request to (202) 720–5698. An

extension request must include the

Customs Service entry number, relevant

grade and aflatoxin certificates (if any)

issued on the outstanding peanuts, and

the reasons for delay in obtaining final

disposition of the peanuts.

(4) Failure to fully comply with

quality and handling requirements or

failure to notify the Secretary of

disposition of all foreign produced

peanuts, as required under this section,

may result in a compliance investigation

by the Secretary. Falsification of reports

submitted to the Secretary is a violation

of Federal law punishable by fine or

imprisonment, or both.

* * * * *

Dated: September 19, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–25411 Filed 9–24–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1205

1997 Amendment to Cotton Board

Rules and Regulations Adjusting

Supplemental Assessment on Imports

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Correction to final rule.

SUMMARY: This document corrects the

final rule published September 2, 1997

(62 FR 46412) which amended the

Cotton Board Rules and Regulations by

lowering the value assigned to imported

cotton for the purpose of calculating

supplemental assessments collected for

use by the Cotton Research and

Promotion Program.

EFFECTIVE DATE: October 2, 1997.

FOR FURTHER INFORMATION CONTACT:

Craig Shackelford, (202) 720-2259.

SUPPLEMENTARY INFORMATION:

Background

The Agricultural Marketing Service

(AMS) amended the Cotton Board Rules

and Regulations by lowering the value

assigned to imported cotton for the

purpose of calculating supplemental

assessments collected for use by the

Cotton Research and Promotion

Program. This action is required by this

regulation on an annual basis to ensure

that the assessments collected on

imported cotton and the cotton content

of imported products remain similar to

those paid on domestically produced

cotton. As a result of changes in the

1997 Harmonized Tariff Schedule

(HTS), numbering changes in the import

assessment table are amended. Eleven

HTS numbers were to be eliminated

from the assessment table because

negligible assessments have been

collected on these numbers and their

elimination would contribute to

reducing the overall burden to

importers.

Need for Correction

In rule FR Doc. 97–23218 published

on September 2, 1997 (62 FR 46412),

make the following correction. On page

46415, in the third column, immediately

following the HTS number 5212216090

remove the entries for HTS numbers

5309214010, 5309214090, 5309294010,

5311004020, 5407810010, 5407810030,

5407912020, 5408312020, 5408329020,

5408349020, and 5408349095.

Dated: September 18, 1997.

Norma McDill,

Acting Director, Cotton Division.

[FR Doc. 97–25278 Filed 9–24–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Parts 1 and 3

[Docket No. 95–078–4]

RIN 0579–AA74

Humane Treatment of Dogs; Tethering;

Clarification

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Final rule; clarification.

SUMMARY: On August 13, 1997, we

published in the Federal Register (62

FR 43272–43275, Docket No. 95–078–2)

a final rule that removed the option for

facilities regulated under the Animal

Welfare Act to use tethering as a means

of primary enclosure. We also added a

provision to the regulations to permit

regulated facilities to temporarily tether

a dog if they obtain approval from the

Animal and Plant Health Inspection

Service. The purpose of this notice is to

clarify what kinds of facilities are

regulated under the Animal Welfare Act

and, subsequently, what kinds of

facilities must comply with the final

rule on tethering.

FOR FURTHER INFORMATION CONTACT: Mr.

Stephen Smith, Staff Animal Health

Technician, Animal Care, APHIS, suite

6D02, 4700 River Road Unit 84,

Riverdale, MD 20737–1234, (301) 734–

4972, or e-mail:

snsmith@aphis.usda.gov.

SUPPLEMENTARY INFORMATION:

Background

On August 13, 1997, we published in

the Federal Register (62 FR 43272–

43275, Docket No. 95–078–2) a final

rule that amended the regulations by

removing the option for facilities

regulated under the Animal Welfare Act

to use tethering as a means of primary

enclosure. We also added a provision to

the regulations to state that regulated

facilities may temporarily tether a dog if

they obtain approval from the Animal

and Plant Health Inspection Service

(APHIS).

This rulemaking was based on our

experience in enforcing the Animal

Welfare Act, which has shown that

tethering can be an inhumane practice

when used as a means of primary

enclosure in facilities regulated under

the Animal Welfare Act. Typically, this

inappropriate use of tethering involves

dogs that are permanently tethered

without opportunity for regular

exercise. This was the basis for our

position that tethering is inhumane.

However, we recognize that under other

circumstances (intermittent use, dogs

are vigorously exercised, pets are on

running tethers, dogs have close

oversight, etc.) the use of tethering may

be entirely appropriate and humane. We

did not intend to imply that tethering of

dogs under all circumstances is

inhumane, nor that tethering under any

circumstances must be prohibited.

Since publication of the final rule, we

have been made aware that some

members of the public are confused as

to who must comply with this final rule.

We have received numerous inquiries

from various kinds of dog owners who

tether their dogs. These dog owners are

concerned that, pursuant to the final

rule, they will no longer be able to

tether their dogs. We are publishing this

notice in order to make it clear who

must comply with the final rule, and