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

70746 

Vol. 70, No. 225 

Wednesday, November 23, 2005 

DEPARTMENT OF AGRICULTURE 

Food Safety and Inspection Service 

9 CFR Part 381 

[Docket No. 05–012P] 

RIN #0583–AD20 

Addition of the People’s Republic of 

China To the List of Countries Eligible 

To Export Processed Poultry and 

Poultry Products to 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 the People’s Republic of China to 

the list of countries eligible to export 

processed poultry and poultry products 

to the United States. Reviews of the 

People’s Republic of China’s laws, 

regulations, and other materials show 

that its poultry processing system 

includes requirements equivalent to all 

provisions in the Poultry Products 

Inspection Act (PPIA) and its 

implementing regulations. 

FSIS is proposing to allow processed 

poultry products from the People’s 

Republic of China to be imported into 

the United States only if they are 

processed in certified establishments in 

the People’s Republic of China from 

poultry slaughtered in certified 

slaughter establishments in other 

countries eligible to export poultry to 

the United States. China is not currently 

eligible to export poultry products to the 

United States that include birds that 

were slaughtered in China’s domestic 

establishments. Under this proposed 

rule, all poultry products exported from 

the People’s Republic of China to the 

United States will be subject to 

reinspection at the U.S. ports-of-entry 

by FSIS inspectors as required by law. 

DATES: Comments must be received on 

or before January 23, 2006. 

ADDRESSES: FSIS invites interested 

persons to submit comments on this 

proposed rule. Comments may be 

submitted by any of the following 

methods: 

• Mail, including floppy disks or CD– 

ROM’s, and hand-or courier-delivered 

items: Send to Docket Clerk, U.S. 

Department of Agriculture, Food Safety 

and Inspection Service, 300 12th Street, 

SW., Room 102 Cotton Annex, 

Washington, DC 20250. 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

online instructions at that site for 

submitting comments. Electronic mail: 

fsis.regulationscomments@fsis.usda.gov. 

All submissions received must 

include the Agency name and docket 

number 05–012P. 

All comments submitted in response 

to this proposal, as well as research and 

background information used by FSIS in 

developing this document, will be 

available for public inspection in the 

FSIS Docket Room at the address listed 

above between 8:30 a.m. and 4:30 p.m., 

Monday through Friday. The comments 

also will be posted on the Agency’s Web 

site at http://www.fsis.usda.gov/ 

regulations_&_policies/ 

2005_Proposed_Rules_Index/index.asp. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Sally White, Director, International 

Equivalence Staff, Office of 

International Affairs; (202) 720–6400. 

SUPPLEMENTARY INFORMATION: 

Background 

FSIS is proposing to amend the 

Federal poultry products inspection 

regulations to add the People’s Republic 

of China to the list of countries eligible 

to export processed poultry and poultry 

products to the United States. 

Section 17 of the PPIA (21 U.S.C. 466) 

prohibits importation into the United 

States of slaughtered poultry, or parts or 

products thereof, of any kind unless 

they are healthful, wholesome, fit for 

human food, not adulterated, and 

contain no dye, chemical, preservative, 

or ingredient that renders them 

unhealthful, unwholesome, adulterated, 

or unfit for human food. Under the PPIA 

and its implementing regulations, 

poultry products imported into the 

United States must be produced under 

standards equivalent to those of the 

United States for safety, 

wholesomeness, and labeling accuracy. 

Section 381.196 of Title 9 of the Code 

of Federal Regulations (CFR) establishes 

the procedures by which foreign 

countries wanting to export poultry and 

poultry products to the United States 

may become eligible to do so. 

Section 381.196(a) requires that a 

foreign country’s poultry inspection 

system include standards equivalent to 

those of the United States, and that the 

legal authority for the system and its 

implementing regulations be 

determined 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, 

where applicable, 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 that a 

poultry inspection system maintained 

by a foreign country, with respect to 

establishments preparing products in 

that country for export to the United 

States, ensure that those establishments 

and their poultry products comply with 

requirements equivalent to the 

provisions of the PPIA and the poultry 

product inspection regulations. Foreign 

country authorities must be able to 

ensure that all certifications required 

under Section 381.196 of the poultry 

product inspection regulations 

(Imported Products) can be relied upon 

before approval to export poultry 

products to the United States may be 

granted. Besides relying on its initial 

determination of a country’s eligibility 

and performing ongoing reviews to 

ensure that products shipped to the 

United States are safe, wholesome and 

properly labeled and packaged, FSIS 

randomly samples imported poultry 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 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, 

Federal Register / Vol. 70, No. 225 / Wednesday, November 23, 2005 / Proposed Rules 70747 

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 

five risk areas. These five risk areas, 

which are the focus of the evaluation, 

are sanitation, animal disease, 

slaughter/processing, residues, and 

enforcement. 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, an on-site review is 

scheduled using a multi-disciplinary 

team to evaluate all aspects of the 

country’s inspection program, including 

laboratories and individual 

establishments within the country. The 

process of determining equivalence is 

described fully on the FSIS Web site at 

http://www.fsis.usda.gov/ 

regulations_&_policies/ 

equivalence_process/index.asp. 

Evaluation of the People’s Republic of 

China Inspection System 

In response to a request from the 

People’s Republic of China for approval 

to export processed poultry and poultry 

products to the United States, FSIS 

conducted a review of the People’s 

Republic of China poultry processing 

inspection system to determine if it was 

equivalent to the U.S. poultry 

inspection system. First, FSIS compared 

the People’s Republic of China’s poultry 

inspection laws and regulations with 

U.S. requirements. The study concluded 

that the requirements contained in the 

People’s Republic of China’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 People’s Republic of China 

poultry processing inspection system in 

operation. The FSIS review team 

concluded that the People’s Republic of 

China’s implementation of poultry 

processing standards and procedures 

was equivalent to those of the United 

States. The full report on People’s 

Republic of China can be found on the 

FSIS Web site at http:// 

www.fsis.usda.gov/regulations/ 

foreign_audit_reports/index.asp. 

FSIS is proposing to allow processed 

poultry products from the People’s 

Republic of China to be imported into 

the United States only if they are 

processed in certified establishments in 

the People’s Republic of China from 

poultry slaughtered in certified 

slaughter establishments in other 

countries eligible to export poultry to 

the United States. China is not currently 

eligible to export poultry products to the 

United States that were slaughtered in 

China’s domestic establishments, and 

this rulemaking will not change its 

eligibility to do so. 

If this proposed rule is adopted, all 

poultry products exported to the United 

States from the People’s Republic of 

China will be subject to reinspection 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 ‘‘Refused 

Entry’’ and must be re-exported, 

destroyed or converted to animal food. 

Accordingly, FSIS is proposing to 

amend § 381.196 of the Federal poultry 

products inspection regulations to add 

the People’s Republic of China as a 

country from which processed poultry 

and poultry products may be eligible for 

import into the United States. As a 

country eligible to export processed 

poultry products to the United States, 

the government of the People’s Republic 

of China would certify to FSIS those 

establishments wishing to export such 

products to the U.S. and operating 

according to U.S. requirements. FSIS 

would retain the right to verify that 

establishments certified by the People’s 

Republic of China government are 

meeting the U.S. requirements. This 

would be done through annual on-site 

reviews of the establishments while 

they are in operation. 

The Agency notes that the Animal 

and Plant Health Inspection Service of 

USDA has classified the People’s 

Republic of China as having Avian 

Influenza. Even if a foreign country is 

listed in FSIS regulations as eligible to 

export poultry products, those poultry 

products must also comply with other 

U.S. requirements. Before a shipment of 

processed poultry or poultry products 

may be presented for re-inspection at 

the port-of entry by FSIS, it must have 

first met the requirements of both the 

U.S. Customs Service and APHIS. 

APHIS is responsible for keeping foreign 

animal diseases out of the United States. 

Under Title 9, part 94 of its regulations 

(9 CFR part 94), APHIS sets restrictions 

on the importation of any fresh, frozen, 

and chilled poultry, poultry products, 

and edible products from countries in 

which certain animal diseases exist. 

Those products that APHIS has 

restricted from entering the United 

States because of animal disease 

conditions in the country of origin will 

be refused entry before reaching an FSIS 

import inspection facility. 

FSIS and APHIS work closely to 

ensure that poultry and poultry 

products imported into the United 

States comply with the regulatory 

requirements of both agencies. In 1985, 

FSIS and APHIS signed a memorandum 

of understanding (MOU) in which both 

agencies agreed to cooperate in meeting 

their respective needs relative to 

information exchange of disease 

surveillance, diagnostic testing, 

investigations, tracebacks, and animal 

and public health emergencies to 

achieve their related objectives of 

reducing disease of animal and public 

health concern, and of providing a 

wholesome and economical food 

supply. The MOU is updated 

periodically to ensure that it addresses 

areas of importance to both agencies. In 

accord with this MOU, FSIS and APHIS 

established procedures for 

communication between the two 

agencies regarding the inspection, 

handling, and disposition of imported 

poultry products. APHIS and FSIS 

communicate regularly to ensure that 

the products APHIS has restricted from 

entering the United States because of 

animal disease concerns are not 

imported into the United States. 

Economic Impact Analysis 

There are 25 establishments in the 

People’s Republic of China that will be 

exporting product to the U.S. if this 

proposal is adopted. The establishments 

will export shelf stable cooked poultry 

products. U.S. imports from these 

establishments are expected to total less 

than 2,500,000 pounds per year. 

U.S. firms export large amounts of 

poultry and poultry products to the 

People’s Republic of China. Table A 

reflects U.S. exports of poultry and 

poultry products to the People’s 

Republic of China for the years 1998–

2003. 

Adoption of this proposed rule will 

open trade between the U.S. and the 

People’s Republic of China in poultry 

products. The impact of this proposed 

rule on U.S. consumers is voluntary in 

that consumers will not be required to 

purchase poultry products produced 

and processed in the People’s Republic 

of China, although they may choose to 

do so. Expected benefits from this type 

of proposed rule will accrue primarily 

to consumers in the form of lower 

prices. The volume of trade stimulated 

70748 Federal Register / Vol. 70, No. 225 / Wednesday, November 23, 2005 / Proposed Rules 

by this proposed rule, however, will 

likely be so small as to have little effect 

on supply and prices. Consumers, apart 

from any change in prices, will benefit 

from increased choices in the 

marketplace. 

The costs of this rule will accrue 

primarily to producers in the form of 

greater competition from the People’s 

Republic of China. Again, it must be 

noted that the volume of trade 

stimulated by this rule will likely be 

small and have little effect on supply 

and prices. Nonetheless, it is possible 

that U.S. firms that produce products 

that will compete with the People’s 

Republic of China imports could face 

short-run difficulty. However, in the 

long run, such firms will likely adjust 

their product mix and be able to 

compete effectively. 

The most significant effects of this 

proposed rule will likely come through 

efficiency gains. Products will only be 

imported from the People’s Republic of 

China if the People’s Republic of China 

establishment can produce the products 

more efficiently than their U.S. 

counterparts. Then, U.S. firms will have 

the incentive to specialize in the 

production of products in which they 

are relatively more efficient. In the long 

run, this improved efficiency will make 

U.S. producers more competitive both 

domestically and internationally. 

TABLE A.—U.S. EXPORTS OF POULTRY PRODUCTS TO THE PEOPLE’S REPUBLIC OF CHINA, 1998–2003 

[Data shown in metric tons] 

Product 1998 1999 2000 2001 2002 2003 

Poultry Meats ....................................................................................... 41493 61948.9 64787 .2 62413.8 86871.4 136494.9 

Chickens, Fr/Froz ................................................................................. 39007 .7 58762.5 61181 .2 48786.6 70670.3 129617.8 

Poultry, Misc ........................................................................................ 18391 .9 15603.1 16204 .1 19110.2 13962.8 47911.3 

Poultry Meats, Prep ............................................................................. 46 .6 1518.1 1860 .9 8562.6 8831.4 3796.6 

Turkeys, Fr/Froz ................................................................................... 2437 .5 1624.7 1624 4764.1 6986.2 2236.6 

Other Poultry Fr/Frz ............................................................................. 1 .2 43.6 121 .2 300.4 383.5 843.9 

Effect on Small Entities 

The Administrator, FSIS, has made an 

initial determination that this proposed 

rule will not have a significant impact 

on a substantial number of small 

entities, as defined by the Regulatory 

Flexibility Act (5 U.S.C. 601). This 

proposed rule would add the People’s 

Republic of China to the list of countries 

eligible to export Poultry products into 

the United States. Once the People’s 

Republic of China begins to export 

poultry products into the United States, 

the volume of cooked poultry products 

available in the U.S. market will likely 

increase by approximately 2,500,000 

pounds per year. However, this small 

volume of trade is unlikely to impact 

the supply and prices of these products. 

Therefore, the proposed action should 

have no significant impact on small 

entities that produce these types of 

products domestically. 

Paperwork Requirements 

No new paperwork requirements are 

associated with this proposed rule. 

Foreign countries wanting to export 

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 before they 

may start exporting such product to the 

United States. FSIS collects this 

information one time only. FSIS gave 

the People’s Republic of China 

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. 

Executive Order 12866 and Regulatory 

Flexibility Act 

This proposed rule has been reviewed 

under Executive Order 12866. It has 

been determined to be not significant for 

purposes of E.O. 12866 and therefore 

has not been reviewed by the Office of 

Management and Budget (OMB). 

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. 

Additional Public Notification 

Public awareness of all segments of 

rulemaking and policy development is 

important. Consequently, in an effort to 

ensure that this proposed rule comes to 

the attention of the public—including 

minorities, women, and persons with 

disabilities—FSIS will announce it online through the FSIS Web page located 

at http://www.fsis.usda.gov. 

The Regulations.gov Web site is the 

central online rulemaking portal of the 

United States government. It is being 

offered as a public service to increase 

participation in the Federal 

government’s regulatory activities. FSIS 

participates in Regulations.gov and will 

accept comments on documents 

published on the site. The site allows 

visitors to search by keyword or 

Department or Agency for rulemakings 

that allow for public comment. Each 

entry provides a quick link to a 

comment form so that visitors can type 

in their comments and submit them to 

FSIS. The Web site is located at 

http://www.regulations.gov. 

FSIS also will make copies of this 

Federal Register publication available 

through the FSIS Constituent Update, 

which is used to provide information 

regarding FSIS policies, procedures, 

regulations, Federal Register notices, 

FSIS public meetings, recalls, and other 

types of information that could affect or 

would be of interest to our constituents 

and stakeholders. The update is 

communicated via Listserv, a free e-mail 

subscription service consisting of 

industry, trade, and farm groups, 

consumer interest groups, allied health 

professionals, scientific professionals, 

and other individuals who have 

requested to be included. The update 

also is available on the FSIS Web page. 

Through Listserv and the Web page, 

FSIS is able to provide information to a 

broader and more diverse audience. 

In addition, FSIS offers an electronic 

mail subscription service that provides 

an automatic and customized 

notification when popular pages are 

updated, included Federal Register 

publications and related documents. 

This service is available at http:// 

www.fsis.usda.gov/news_and_events/ 

email_subscription/ and allows FSIS 

customers to sign up for subscription 

Federal Register / Vol. 70, No. 225 / Wednesday, November 23, 2005 / Proposed Rules 70749 

options in eight categories. Options 

range from recalls to export information 

to regulations, directives and notices. 

Customers can add or delete 

subscriptions themselves and have the 

option to password protect their 

accounts. 

List of Subjects 9 CFR Part 381 

Imported Poultry Products. 

For the reasons set out in the 

preamble, 9 CFR part 381 is proposed to 

be amended as follows: 

PART 381—POULTRY PRODUCTS 

INSPECTION REGULATIONS 

1. The authority citation for part 381 

continues to read as follows: 

Authority: 7 U.S.C. 138f, 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 ‘‘People’s Republic of 

China 2’’ in alphabetical order to the list 

of countries in paragraph (b). 

Done at Washington, DC on: November 17, 

2005. 

Barbara J. Masters, 

Administrator. 

[FR Doc. 05–23123 Filed 11–22–05; 8:45 am] 

BILLING CODE 3410–DM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2005–20836; Directorate 

Identifier 2005–NM–028–AD] 

RIN 2120–AA64 

Airworthiness Directives; Boeing 

Model 727–200 and 727–200F Series 

Airplanes; 737–200, 737–200C, 737–

300, and 737–400 Series Airplanes; 

747–100, 747–100B, 747–100B SUD, 

747–200B, 747–200C, 747–200F, 747–

300, 747–400, 747SR, and 747SP Series 

Airplanes; 757–200 and 757–200PF 

Series Airplanes; and 767–200 and 

767–300 Series Airplanes 

ACTION: Notice of proposed rulemaking 

(NPRM); reopening of comment period. 

SUMMARY: This document announces a 

reopening of the comment period for the 

above-referenced NPRM. The NPRM 

proposed the adoption of a new 

airworthiness directive (AD) for certain 

Boeing transport category airplanes. 

That NPRM invites comments 

concerning the proposed requirements 

for replacing any insulation blanket 

constructed of 

polyethyleneteraphthalate (PET) film, 

ORCON Orcofilm AN–26 (hereafter 

‘‘AN–26’’), with a new insulation 

blanket. This reopening of the comment 

period is necessary to provide 

additional opportunity for public 

comment on the proposed requirements 

of that NPRM. 

DATES: We must receive comments on 

this proposed AD by February 21, 2006. 

ADDRESSES: Use one of the following 

addresses to submit comments on this 

proposed AD. 

• DOT Docket Web site: Go to 

http://dms.dot.gov and follow the 

instructions for sending your comments 

electronically. 

• Government-wide rulemaking Web 

site: Go to http://www.regulations.gov 

and follow the instructions for sending 

your comments electronically. 

• Mail: Docket Management Facility, 

U.S. Department of Transportation, 400 

Seventh Street, SW., Nassif Building, 

room PL–401, Washington, DC 20590. 

• Fax: (202) 493–2251. 

• Hand Delivery: Room PL–401 on 

the plaza level of the Nassif Building, 

400 Seventh Street, SW., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: Sue 

Rosanske, Aerospace Engineer, Cabin 

Safety and Environmental Systems 

Branch, ANM–150S, FAA, Seattle 

Aircraft Certification Office, 1601 Lind 

Avenue, SW., Renton, Washington 

98055–4056; telephone (425) 917–6448; 

fax (425) 917–6590. 

SUPPLEMENTARY INFORMATION: 

Examining the Docket 

You may examine the AD docket on 

the Internet at http://dms.dot.gov, or in 

person at the Docket Management 

Facility office between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. The Docket 

Management Facility office (telephone 

(800) 647–5227) is located on the plaza 

level of the Nassif Building at the DOT 

street address stated in the ADDRESSES

section. Comments will be available in 

the AD docket shortly after the Docket 

Management System receives them. 

Discussion 

We proposed to amend 14 CFR part 

39 with a notice of proposed rulemaking 

(NPRM) for an AD for certain Boeing 

Model 727–200 and 727–200F series 

airplanes; 737–200, 737–200C, 737–300, 

and 737–400 series airplanes; 747–100, 

747–100B, 747–100B SUD, 747–200B, 

747–200C, 747–200F, 747–300, 747–

400, 747SR, and 747SP series airplanes; 

757–200 and 757–200PF series 

airplanes; and 767–200 and 767–300 

series airplanes. The NPRM was 

published in the Federal Register on 

June 6, 2005 (70 FR 32738). The NPRM 

proposed to require replacing any 

insulation blanket constructed of AN–26 

with a new insulation blanket. The 

NPRM action invites comments on the 

overall regulatory, economic, 

environmental, and energy aspects of 

the proposed AD. 

Actions Since NPRM Was Issued 

Since we issued the NPRM, we have 

received many comments. Most 

commenters express concerns about the 

unavailability of appropriate service 

information and the limited number of 

compliance methods. In addition, 

several commenters suggest alternative 

methods of compliance, but do not 

provide any specific details. 

It is our intent to address the 

identified unsafe condition in a timely 

manner, with minimum disruption to 

industry, and maximum flexibility in 

methods of compliance. We encourage 

interested parties to continue to 

evaluate the proposal and to submit 

additional comments with more specific 

details concerning issues that the FAA 

may need to evaluate before finalizing 

its decision of the proposal. We have 

determined that such input may be 

beneficial before adoption of a final 

rule. As a result, we have decided to 

reopen the comment period for 90 days 

to receive additional comments. 

No part of the regulatory information 

has been changed; therefore, the NPRM 

is not republished in the Federal 

Register. 

Comments Due Date 

We must receive comments on this 

AD action by February 21, 2006. 

Issued in Renton, Washington, on 

November 10, 2005. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 05–23153 Filed 11–22–05; 8:45 am] 

BILLING CODE 4910–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Parts 1, 145 and 147 

RIN 3038–AC05 

Alternative Market Risk and Credit Risk 

Capital Charges for Futures 

Commission Merchants and Specified 

Foreign Currency Forward and 

Inventory Capital Charges 

AGENCY: Commodity Futures Trading 

Commission.