63284 Federal Register / Vol. 62, No. 229 / Friday, November 28, 1997 / Proposed Rules

notice of its final decision to the

individual and provide a copy to the

carrier. The notice must fully set forth

the findings and conclusions on which

the decision was based.

(5) If, at any time after the

disenrollment has occurred, the

employing office or OPM determines

that another provision of this part

applies to the individual’s enrollment or

the carrier discovers or receives

appropriate documentation showing

that another section of this part applies

to the individual’s enrollment, the

disenrollment under paragraph (c)(1) of

this section is void and coverage is

reinstated retroactively.

(d) When an enrollee notifies the

carrier that he or she has separated from

Federal employment and is no longer

eligible for enrollment, the carrier must

disenroll the individual, subject to the

31-day temporary extension of coverage

and conversion right under § 890.401,

on the last day of the pay period in

which the separation occurred, if

known, otherwise the carrier must

disenroll the employee on the date the

employee provides as the date of

separation. The carrier must notify the

enrollee of his or her right to convert to

a nongroup contract with the carrier and

possible eligibility to enroll under the

temporary continuation of coverage

provisions as set forth in subpart K of

this part based on the termination of

enrollment as provided under

§ 890.304(a)(1)(i).

[FR Doc. 97–31166 Filed 11–26–97; 8:45 am]

BILLING CODE 6325–01–P

DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

9 CFR Part 381

[Docket No. 97–006P]

RIN 0583–AC33

Addition of Mexico to the List of

Countries Eligible to Export Poultry

Products Into the United States

AGENCY: Food Safety and Inspection

Service, USDA.

ACTION: Proposed rule.

SUMMARY: The Food Safety and

Inspection Service (FSIS) is proposing

to add Mexico to the list of countries

eligible to export poultry products into

the United States. Reviews of Mexico’s

laws, regulations, and other materials

show that its poultry processing system

meets requirements equivalent to all

provisions in the Poultry Products

Inspection Act (PPIA) and its

implementing regulations.

Only poultry products that have been

slaughtered in federally inspected

establishments in the United States or in

establishments in other countries

eligible to export poultry to the United

States and have then been processed in

certified Mexican establishments would

be permitted to be imported into the

United States. All poultry products

exported from Mexico to the United

States must be reinspected at the U.S.

ports-of-entry by FSIS inspectors.

This action would enable certified

poultry processing establishments in

Mexico to export processed poultry

products into the United States.

DATES: Comments must be received on

or before January 27, 1998.

ADDRESSES: Send an original and two

copies of comments to: FSIS Docket

Clerk, Docket #97–006P, Room 102,

Cotton Annex, 300 C Street, SW,

Washington, DC 20250–3700. Reference

materials cited in this document and

any comments received will be available

for public inspection in the FSIS Docket

Room from 8:30 a.m. to 1:00 p.m. and

from 2:00 p.m. to 4:30 p.m., Monday

through Friday.

FOR FURTHER INFORMATION CONTACT: Mr.

Mark Manis, Director, International

Policy Development Division, Office of

Policy, Program Development and

Evaluation; (202) 720–6400.

SUPPLEMENTARY INFORMATION:

Background

FSIS is proposing to amend the

poultry products inspection regulations

to add Mexico to the list of countries

eligible to export poultry products to the

United States. Section 17 of the PPIA

(21 U.S.C. 466) prohibits the

importation into the United States of

slaughtered poultry or poultry products

unless they are healthful, wholesome, fit

for human food, not adulterated, and

contain no dye, chemical, preservative,

or ingredient which renders them

unhealthful, unwholesome, adulterated,

or unfit for human food. Imported

poultry products must be in compliance

with the poultry products inspection

regulations to ensure that they meet the

standards provided in the PPIA. 9 CFR

381.196 establishes the procedures by

which foreign countries wanting to

export poultry or poultry products to

the United States may become eligible

to do so.

Section 381.196(a) requires

authorities in a foreign country’s poultry

inspection system to certify that (1) the

system provides standards equivalent to

those of the United States and (2) the

legal authority for the system and its

implementing regulations are equivalent

to those of the United States.

Specifically, a country’s regulations

must impose requirements equivalent to

those of the United States in the

following areas: (1) Ante-mortem and

post-mortem inspection; (2) official

controls by the national government

over plant construction, facilities, and

equipment; (3) direct and continuous

supervision of slaughter activities and

product preparation by official

inspection personnel; (4) separation of

establishments certified to export from

those not certified; (5) maintenance of a

single standard of inspection and

sanitation throughout certified

establishments; and (6) official controls

over condemned product.

Section 381.196 also requires a

poultry inspection system maintained

by a foreign country, with respect to

establishments preparing products in

that country for export to the United

States, to ensure that those

establishments and their poultry

products comply with requirements

equivalent to the provisions of the PPIA

and the poultry products inspection

regulations. Foreign country authorities

must be able to ensure that all

certifications required under Subpart T

of the poultry product inspection

regulations (Imported Poultry Products)

can be relied upon before approval to

export poultry and poultry products to

the United States may be granted. Here,

the government of Mexico would be

responsible for establishing a system of

controls to ensure that only poultry

from eligible countries and

establishments is used in poultry

products processed in Mexico and

destined for the United States. Besides

relying on its initial determination of a

country’s eligibility, coupled with

ongoing reviews to ensure that products

shipped to the United States are safe,

wholesome and properly labeled and

packaged, FSIS randomly samples

imported meat and poultry products for

reinspection as they enter the United

States.

In addition to meeting the

certification requirements, a foreign

country’s inspection system must be

evaluated by FSIS before eligibility to

export poultry and poultry products can

be granted. This evaluation consists of

two processes: a document review and

an on-site review. The document review

is an evaluation of the laws, regulations,

and other written materials used by the

country to operate its inspection

program. To help the country in

organizing its material, FSIS gives the

country questionnaires asking for

detailed information about the country’s

inspection practices and procedures in
Federal Register / Vol. 62, No. 229 / Friday, November 28, 1997 / Proposed Rules 63285

five risk areas. These five risk areas,

which are the focus of the evaluation,

are contamination, disease, processing,

residues, and compliance/economic

fraud. FSIS evaluates the information to

verify that the critical points in the five

risk areas are addressed satisfactorily

with respect to standards, activities,

resources, and enforcement. If the

document review is satisfactory, on-site

reviews are scheduled using a multidisciplinary team to evaluate all aspects

of the country’s delivery of its

inspection program, including

laboratories and individual

establishments within the country.

Evaluation of the Mexican Inspection

System

In 1988, following an in-depth

evaluation of its meat inspection

system, Mexico was granted eligibility

to export fresh and further processed

meat products subject to the Federal

Meat Inspection Act to the United

States. The government agency in

Mexico responsible for inspecting meat

for export to the United States also has

authority over poultry inspection. Thus,

the authorities operating the Mexican

inspection system have for several years

demonstrated their knowledge of the

U.S. inspection system, and successfully

provided inspection equivalence for

fresh and processed meat.

In response to a request from the

Mexican government for approval to

export poultry to the United States, FSIS

conducted a review of the Mexican

poultry inspection system to determine

if it was equivalent to the U.S. poultry

inspection system. First, FSIS compared

Mexico’s poultry inspection laws and

regulations with U.S. requirements. The

study concluded that the requirements

contained in Mexico’s poultry

inspection laws and regulations are

equivalent to those mandated by the

PPIA and implementing regulations.

FSIS then conducted an on-site review

of the Mexican poultry inspection

system in operation. This review was

conducted between May 28 and June 5,

1996. The FSIS review team concluded

that Mexico’s implementation of poultry

processing standards and procedures

was equivalent to that of the United

States and that Mexico’s official residue

control laboratory was fully capable of

testing poultry products. The parties

have agreed to postpone final decision

making regarding Mexico’s

implementation of slaughter processing

standards and procedures until a later

date. As a result, poultry processed in

Mexican establishments approved to

export to the United States must be

slaughtered in the United States under

USDA inspection or in establishments

in other countries that are certified as

eligible to export to the United States.

The Mexican government has agreed to

conduct its program in a way that

ensures that only poultry from eligible

countries and establishments is used in

poultry products processed in Mexico

destined for the United States.

All lots of poultry products exported

to the United States from Mexico will be

reinspected at the ports-of-entry for

transportation damage, labeling, proper

certification, general condition and

accurate count. Other types of

inspection will also be conducted,

including examining the product for

defects and performing laboratory

analyses that will detect chemical

residues on the product or determine

whether the product is

microbiologically contaminated.

Products that pass reinspection will

be stamped with the official mark of

inspection and allowed to enter U.S.

commerce. If they do not meet U.S.

requirements, they will be stamped

‘‘U.S. Refused Entry’’ and must be

reexported, destroyed or converted to

animal food.

Accordingly, FSIS is proposing to

amend § 381.196 of the poultry products

inspection regulations to add Mexico as

a country from which poultry products

may be eligible for import into the

United States. As a country eligible to

export poultry products into the United

States, the government of Mexico would

certify to FSIS those establishments

wishing to export such products to the

United States and operating according

to U.S. requirements. FSIS would retain

the right to verify that establishments

certified by the Mexican government are

meeting the U.S. requirements. This

would be done through on-site reviews

of the establishments while they are in

operation.

Executive Order 12988

This proposed rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. If this proposed rule is

adopted: (1) all state and local laws and

regulations that are inconsistent with

this rule will be preempted; (2) no

retroactive effect will be given to this

rule; and (3) administrative proceedings

will not be required before parties may

file suit in court challenging this rule.

Executive Order 12866 and Regulatory

Flexibility Act

This proposed rule has been

determined to be significant and has

been reviewed by OMB under Executive

Order 12866.

In accordance with 5 U.S.C. 603, FSIS

has also conducted an initial regulatory

flexibility analysis regarding the impact

of the rule on small entities. However,

FSIS does not currently have all the data

necessary for a comprehensive analysis

of the effects of this rule on small

entities. Therefore, FSIS is inviting

comments concerning potential effects.

In particular, FSIS is interested in

determining the number and type of

small entities that may incur benefits or

costs from implementation of this

proposed rule.

This proposed rule would add Mexico

to the list of countries eligible to export

poultry products into the United States.

However, through use of required

certificates, poultry imports from

Mexico would be limited to only

products derived from carcasses

slaughtered under federal inspection in

the United States or slaughtered under

the inspection systems of other

countries that are now eligible to export

poultry to the United States. Currently,

only Canada, Great Britain, France,

Israel and Hong Kong are on the list of

countries eligible to export poultry

products into the United States. Any

exports from Hong Kong are restricted to

products slaughtered under federal

inspection in the United States or

slaughtered in the inspection systems of

Canada, Great Britain, France or Israel.

With implementation of the proposed

rule, FSIS expects to see some domestic

poultry establishments shipping whole

carcasses or parts of carcasses to

certified Mexican establishments. These

carcasses or parts of carcasses would

then be cut-up, deboned or further

processed in these Mexican

establishments. Some processed poultry

products, particularly higher valued

products such as boneless breast meat,

would then be shipped to markets in the

United States. Products shipped to the

United States could also include poultry

sausage and other cooked products.

As this process unfolds, total pounds

of poultry exports would go up. Because

some further processed products would

be shipped back to the United States,

imports of poultry products would also

increase. A corresponding decrease in

domestic jobs associated with cutting

and deboning operations would occur.

With implementation, poultry firms

could lower overall processing costs by

having labor-intensive cut-up and

deboning operations performed in

certified Mexican establishments where

wages can be expected to be lower.

However, FSIS believes the potential for

any significant changes in overall

production costs would be limited.

First, cut-up and boning operations are

currently conducted by relatively lower

wage employees. The value added by

these operations is relatively small. In

1996, wholesale prices of whole broilers
63286 Federal Register / Vol. 62, No. 229 / Friday, November 28, 1997 / Proposed Rules

averaged $.61 per pound, whereas

wholesale prices of cut-up broilers

averaged $.66 per pound. Second, the

potential for lowering production costs

using lower wage employees would be

offset by export fees, import fees and

increased shipping/transportation costs.

Considering these factors, FSIS does

not anticipate any measurable change in

market prices for processed poultry

products. Because of shipping and

transportation costs, FSIS expects most

of the change to be limited to firms

located relatively close to the Mexican

border. For the same reasons, FSIS does

not expect to see increases in poultry

imports from Mexico processed from

birds slaughtered in other countries

such as Canada and Great Britain.

Currently, Mexico imports very little

poultry from other countries. In 1996,

Mexico imported approximately 396

million pounds of poultry and poultry

products. More than 97 percent was

imported from the United States.

FSIS does not believe this rule would

offset enough product to affect domestic

poultry prices. In 1996, U.S. poultry

production was approximately 32.3

billion pounds on a ready-to-cook

carcass weight basis. The United States

exported approximately 386 million

pounds to Mexico. With this rule,

exports would likely increase more than

imports on a pound basis. However,

considering that imports would consist

of value-added products, it is possible

that the dollar value of imports will

increase more than the value of exports.

As noted above, FSIS is requesting

comments on the potential effect of this

proposal on small entities. While most

poultry is cut-up and boned in large

firms, there are many small businesses

involved in cut-up, boning and further

poultry processing operations. Although

changes in prices would affect these

small businesses, FSIS does not expect

measurable price changes for the

reasons already discussed.

Paperwork Requirements

No new paperwork requirements are

associated with this proposed rule.

Foreign countries wanting to export

poultry or poultry products to the

United States are required to provide

information to FSIS certifying that its

inspection system provides standards

equivalent to those of the United States

and that the legal authority for the

system and its implementing regulations

are equivalent to those of the United

States’s before they may start exporting

such product to the United States. FSIS

collects this information one time only.

FSIS gave Mexico questionnaires asking

for detailed information about the

country’s inspection practices and

procedures to assist the country in

organizing its materials. This

information collection was approved

under OMB number 0583–0094. The

proposed rule contains no other

paperwork requirements.

List of Subjects 9 CFR Part 381

Imports, Poultry and poultry

products.

For the reasons set out in the

preamble, 9 CFR part 381 would be

amended as follows:

PART 381—POULTRY PRODUCTS

INSPECTION REGULATIONS

1. The authority citation for part 381

would continue to read as follows:

Authority: 7 U.S.C. 138f; 7 U.S.C. 450; 21

U.S.C. 451–470; 7 CFR 2.18, 2.53.

§ 381.196 [Amended]

2. Section 381.196 would be amended

by adding ‘‘Mexico’’ in alphabetical

order to the list of countries in

paragraph (b).

Done at Washington, DC, on: November 18,

1997.

Thomas J. Billy,

Administrator.

[FR Doc. 97–31177 Filed 11–24–97; 10:10 am]

BILLING CODE 3410–DM–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 97–NM–154–AD]

RIN 2120–AA64

Airworthiness Directives; Dornier

Model 328–100 Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes the

adoption of a new airworthiness

directive (AD) that is applicable to all

Dornier Model 328 series airplanes. This

proposal would require a one-time

inspection of the date stamp affixed to

the wing deicing boots to determine the

cure date, and replacement of the

deicing boot with a new boot, if

necessary. This proposal is prompted by

issuance of mandatory continuing

airworthiness information by a foreign

civil airworthiness authority. The

actions specified by the proposed AD

are intended to prevent delamination of

the wing deicing boots, and resultant

inflation of the deicing boots to a

distorted aerodynamic shape during

flight, which could result in reduced

controllability of the airplane.

DATES: Comments must be received by

December 29, 1997.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–103,

Attention: Rules Docket No. 97–NM–

154–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

Comments may be inspected at this

location between 9:00 a.m. and 3:00

p.m., Monday through Friday, except

Federal holidays.

The service information referenced in

the proposed rule may be obtained from

Dornier Deutsche Aerospace, P.O. Box

1103, D–82230 Wessling, Federal

Republic of Germany. This information

may be examined at the FAA, Transport

Airplane Directorate, 1601 Lind

Avenue, SW., Renton, Washington.

FOR FURTHER INFORMATION CONTACT:

International Branch, ANM–116, FAA,

Transport Airplane Directorate, 1601

Lind Avenue, SW., Renton, Washington

98055–4056; telephone (425) 227–2110;

fax (425) 227–1149.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of the

proposed rule by submitting such

written data, views, or arguments as

they may desire. Communications shall

identify the Rules Docket number and

be submitted in triplicate to the address

specified above. All communications

received on or before the closing date

for comments, specified above, will be

considered before taking action on the

proposed rule. The proposals contained

in this notice may be changed in light

of the comments received.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule. All comments

submitted will be available, both before

and after the closing date for comments,

in the Rules Docket for examination by

interested persons. A report

summarizing each FAA-public contact

concerned with the substance of this

proposal will be filed in the Rules

Docket.

Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to this notice

must submit a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket Number 97–NM–154–AD.’’ The