This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

31942

Vol. 63, No. 112

Thursday, June 11, 1998

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1230

[No. LS–98–004]

Pork Promotion, Research, and

Consumer Information Order—

Decrease in Importer Assessments

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: Pursuant to the Pork

Promotion, Research, and Consumer

Information Act (Act) of 1985 and the

Pork Promotion, Research, and

Consumer Information Order (Order)

issued thereunder, this proposed rule

would decrease by one-hundredth of a

cent per pound the amount of the

assessment per pound due on imported

pork and pork products to reflect a

decrease in the 1997 five-market average

price for domestic barrows and gilts.

This proposed action would bring the

equivalent market value of the live

animals from which such imported pork

and pork products were derived in line

with the market values of domestic

porcine animals. These proposed

changes will facilitate the continued

collection of assessments on imported

porcine animals, pork, and pork

products.

DATES: Comments must be received by

July 13, 1998.

ADDRESSES: Send two copies of

comments to Ralph L. Tapp, Chief;

Marketing Programs Branch, STOP

0251; Livestock and Seed Program;

Agricultural Marketing Service (AMS),

USDA, 1400 Independence Ave., SW;

Washington, D.C. 20250–0251.

Comments will be available for public

inspection during regular business

hours at the above office in Room 2606

South Building; 14th and Independence

Avenue, SW., Washington, D.C. 20090–

6456.

FOR FURTHER INFORMATION CONTACT:

Ralph L. Tapp, Chief, Marketing

Programs Branch, 202/720–1115.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778 and

Regulatory Flexibility Act

This proposed 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 proposed rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. This proposal is not

intended to have a retroactive effect.

The 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

§ 1625 of the Act, a person subject to an

order may file a petition with the

Secretary 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 Secretary 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 Secretary’s determination, if a

complaint is filed not later than 20 days

after the date such person receives

notice of such determination.

This action also was reviewed under

the Regulatory Flexibility Act (RFA) (5

United States Code (U.S.C.) 601 et seq.).

The effect of the Order upon small

entities initially was discussed in the

September 5, 1986, issue of the Federal

Register (51 FR 31898). It was

determined at that time that the Order

would not have a significant effect upon

a substantial number of small entities.

Many of the estimated 1,000 importers

may be classified as small entities under

the Small Business Administration

definition (13 CFR 121.601).

This proposed rule would decrease

the amount of assessments on imported

pork and pork products subject to

assessment by one-hundredth of a cent

per pound, or as expressed in cents per

kilogram, two-hundredths of a cent per

kilogram. This decrease is consistent

with the decrease in the annual average

price of domestic barrows and gilts for

calendar year 1997. The average annual

market price decreased from $52.77 in

1996 to $51.30 in 1997, a decrease of

about 3 percent. Adjusting the

assessments on imported pork and pork

products would result in an estimated

decrease in assessments of $48,000 over

a 12-month period. Assessments

collected for 1997 were $3,369,587.

Accordingly, the Administrator of AMS

has determined that this action would

not have a significant economic impact

on a substantial number of small

entities.

The Act (7 U.S.C. 4801–4819)

approved December 23, 1985,

authorized the establishment of a

national pork promotion, research, and

consumer information program. 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 an

equivalent amount of assessment on

imported porcine animals, pork, and

pork products. However, that rate was

increased to 0.35 percent in 1991 (56 FR

51635) and to 0.45 percent effective

September 3, 1995 (60 FR 29963). The

final Order 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 29963, 61 FR 29002,

and 62 FR 26205) and assessments

began on November 1, 1986.

The Order requires importers of

porcine animals to pay U.S. Customs

Service (USCS), upon importation, the

assessment of 0.45 percent of the

animal’s declared value and importers

of pork and pork products to pay USCS,

upon importation, the assessment of

0.45 percent of the market value of the

live porcine animals from which such

pork and pork products were produced.

This proposed rule would decrease the

assessments on all of the imported pork
Federal Register / Vol. 63, No. 112 /Thursday, June 11, 1998 / Proposed Rules 31943

and pork products subject to assessment

as published in the Federal Register as

a final rule May 13, 1997, and effective

on June 12, 1997; (62 FR 26205). This

decrease is consistent with the decrease

in the annual average price of domestic

barrows and gilts for calendar year 1997

as reported by USDA, AMS, Livestock

and Grain Market News (LGMN)

Branch. This decrease in assessments

would make the equivalent market

value of the live porcine animal from

which the imported pork and pork

products were derived reflect the recent

decrease in the market value of

domestic porcine animals, thereby

promoting comparability between

importer and domestic assessments.

This proposed rule would not change

the current assessment rate of 0.45

percent of the market value.

The methodology for determining the

per pound amounts for imported pork

and pork products was described in the

Supplementary Information

accompanying the Order and published

in the September 5, 1986, Federal

Register at 51 FR 31901. The weight of

imported pork and pork products is

converted to a carcass weight equivalent

by utilizing conversion factors which

are published in the Department’s

Statistical Bulletin No. 697 ‘‘Conversion

Factors and Weights and Measures.’’

These conversion factors take into

account the removal of bone, weight lost

in cooking or other processing, and the

nonpork components of pork products.

Secondly, the carcass weight equivalent

is converted to a live animal equivalent

weight by dividing the carcass weight

equivalent by 70 percent, which is the

average dressing percentage of porcine

animals in the United States. Thirdly,

the equivalent value of the live porcine

animal is determined by multiplying the

live animal equivalent weight by an

annual average market price for barrows

and gilts as reported by USDA, AMS,

LGMN Branch. This average price is

published on a yearly basis during the

month of January in LGMN Branch’s

publication ‘‘Livestock, Meat, and Wool

Weekly Summary and Statistics.’’

Finally, the equivalent value is

multiplied by the applicable assessment

rate of 0.45 percent due on imported

pork and pork products. The end result

is expressed in an amount per pound for

each type of pork or pork product. To

determine the amount per kilogram for

pork and pork products subject to

assessment under the Act and Order, the

cent per pound assessments are

multiplied by a metric conversion factor

2.2046 and carried to the sixth decimal.

The formula in the preamble for the

Order at 51 FR 31901 contemplated that

it would be necessary to recalculate the

equivalent live animal value of

imported pork and pork products to

reflect changes in the annual average

price of domestic barrows and gilts to

maintain equity of assessments between

domestic porcine animals and imported

pork and pork products.

The average annual market price

decreased from $52.77 in 1996 to $51.30

in 1997, a decrease of about 3 percent.

This decrease would result in a

corresponding decrease in assessments

for all HTS numbers listed in the table

in § 1230.110, 62 FR 26205; May 13,

1997, of an amount equal to onehundredth of a cent per pound, or as

expressed in cents per kilogram, twohundredths of a cent per kilogram.

Based on the most recent available

Department of Commerce, Bureau of

Census, data on the volume of imported

pork and pork products available for the

period January 1, 1997, through

September 30, 1997, the proposed

decrease in assessment amounts would

result in an estimated $48,000 decrease

in assessments over a 12-month period.

This proposed rule provides for a 30-

day comment period. This comment

period is appropriate because the

proposed rule simply provides for an

adjustment in the per pound assessment

levels on imported pork and pork

products to reflect changes in live hog

prices which occurred from 1996 to

1997. These live hog prices form the

basis for the assessments. This

adjustment, if adopted, should be made

effective as soon as possible to promote

optimum equity.

List of Subjects in 7 CFR Part 1230

Administrative practice and

procedure, Advertising, Agricultural

research, Marketing agreement, Meat

and meat products, Pork and pork

products.

For the reasons set forth in the

preamble, it is proposed that 7 CFR Part

1230 be amended 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.

Subpart B—[Amended]

2. Section 1230.110 is revised to read

as follows:

§ 1230.110 Assessments on imported pork

and pork products.

(a) The following HTS categories of

imported live porcine animals are

subject to assessment at the rate

specified.

Live porcine animals Assessment

0103.10.0000 ............................ 1 0.45

0103.91.0000 ............................ 1 0.45

0103.92.0000 ............................ 1 0.45

1Percent Customs Entered Value.

(b) The following HTS categories of

imported pork and pork products are

subject to assessment at the rates

specified.

Pork and pork

products

Assessment

Cents/lb Cents/kg

0203.11.0000 .... .33 .727518

0203.12.1010 .... .33 .727518

0203.12.1020 .... .33 .727518

0203.12.9010 .... .33 .727518

0203.12.9020 .... .33 .727518

0203.19.2010 .... .38 .837748

0203.19.2090 .... .38 .837748

0203.19.4010 .... .33 .727518

0203.19.4090 .... .33 .727518

0203.21.0000 .... .33 .727518

0203.22.1000 .... .33 .727518

0203.22.9000 .... .33 .727518

0203.29.2000 .... .38 .837748

0203.29.4000 .... .33 .727518

0206.30.0000 .... .33 .727518

0206.41.0000 .... .33 .727518

0206.49.0000 .... .33 .727518

0210.11.0010 .... .33 .727518

0210.11.0020 .... .33 .727518

0210.12.0020 .... .33 .727518

0210.12.0040 .... .33 .727518

0210.19.0010 .... .38 .837748

0210.19.0090 .... .38 .837748

1601.00.2010 .... .46 1.014116

1601.00.2090 .... .46 1.014116

1602.41.2020 .... .50 1.102300

1602.41.2040 .... .50 1.102300

1602.41.9000 .... .33 .727518

1602.42.2020 .... .50 1.102300

1602.42.2040 .... .50 1.102300

1602.42.4000 .... .33 .727518

1602.49.2000 .... .46 1.014116

1602.49.4000 .... .38 .837748

Dated: June 8, 1998.

Barry L. Carpenter,

Deputy Administrator, Livestock and Seed

Program.

[FR Doc. 98–15578 Filed 6–10–98; 8:45 am]

BILLING CODE 3410–02–P

NORTHEAST DAIRY COMPACT

COMMISSION

7 CFR Parts 1301, 1304 and 1306

Over-Order Price Regulation

AGENCY: Northeast Dairy Compact

Commission.

ACTION: Proposed rule.

SUMMARY: The Northeast Dairy Compact

Commission proposes to amend the

current Compact Over-order Price

Regulation to exclude milk from the

pool which is either diverted or