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

56677 

Vol. 72, No. 192 

Thursday, October 4, 2007 

DEPARTMENT OF AGRICULTURE 

Office of the Secretary 

7 CFR Part 6 

RIN 0551–AA70 

The Dairy Import Licensing Program 

AGENCY: Office of the Secretary, USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

suspend the historical license reduction 

provisions of the dairy import licensing 

program, 7 CFR part 6, for a period of 

5 years. This temporary suspension is 

intended to improve program 

administration and reflect changes in 

the markets for cheese and other dairy 

products subject to import licensing 

requirements. 

DATES: Submit comments on or before 

November 5, 2007. 

ADDRESSES: Address all comments 

concerning this proposed rule to Ron 

Lord, Branch Chief, Sugar and Dairy 

Branch, Import and Trade Support 

Programs Division, Foreign Agricultural 

Service, 1400 Independence Avenue, 

SW., Washington, DC 20250, Room 

5531–S, STOP 1021, e-mail at 

Ronald.Lord@usda.gov, telephone (202) 

720–2916, or fax at (202) 720–0876. 

Persons with disabilities who require an 

alternative means for communication of 

information (Braille, large print, 

audiotape, etc.) should contact USDA’s 

Target Center at (202) 720–2600 (voice 

and TDD). 

FOR FURTHER INFORMATION CONTACT: 

Contact Ron Lord, Branch Chief, Sugar 

and Dairy Branch, Import and Trade 

Support Programs Division, Foreign 

Agricultural Service, 1400 

Independence Avenue, SW., 

Washington, DC 20250, Room 5531–S, 

STOP 1021, e-mail at 

Ronald.Lord@usda.gov, telephone (202) 

720–2916, or fax at (202) 720–0876. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

The proposed rule has been 

determined to be non-significant under 

E.O. 12866 and has been reviewed by 

the Office of Management and Budget. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

ensures that regulatory and information 

requirements are tailored to the size and 

nature of small businesses, small 

organizations, and small governmental 

jurisdictions. This proposed rule will 

not have a significant economic impact 

on small businesses participating in the 

program. 

Executive Order 12988 

This proposed rule has been reviewed 

under Executive Order 12988. The 

provisions of this proposed rule would 

not have preemptive effect with respect 

to any State or local laws, regulations, 

or policies which conflict with such 

provision or which otherwise impede 

their full implementation. The proposed 

rule would not have a retroactive effect. 

Before any judicial action may be 

brought forward regarding this proposed 

rule, all administrative remedies must 

be exhausted. 

National Environmental Policy Act 

The Administrator has determined 

that this action will not have a 

significant effect on the quality of the 

human environment. Therefore, neither 

an Environmental Assessment nor an 

Environmental Impact Statement is 

necessary for this proposed rule. 

Unfunded Mandates Reform Act (Pub. 

L. 104–4) 

Public Law 104–4 requires 

consultation with State and local 

officials and Indian tribal governments. 

This proposed rule does not impose an 

unfunded mandate or any other 

requirement on State, local, or tribal 

governments. Accordingly, these 

programs are not subject to the 

provisions of the Unfunded Mandates 

Reform Act. 

Executive Order 12630 

This Order requires careful evaluation 

of governmental actions that interfere 

with constitutionally protected property 

rights. This proposed rule would not 

interfere with any property rights and, 

therefore, does not need to be evaluated 

on the basis of the criteria outlined in 

Executive Order 12630. 

Government Paperwork Elimination 

Act 

FAS is committed to compliance with 

the Government Paperwork Elimination 

Act, which requires Government 

agencies, in general, to provide the 

public the option of submitting 

information or transacting business 

electronically to the maximum extent 

possible. 

Background 

The proposed rule at 7 CFR part 6 

would revise the Dairy Tariff-Rate 

Import Quota Licensing regulation in 

effect since October 9, 1996, by 

suspending the provisions with respect 

to the reduction of historical licenses 

based on surrenders of unused amounts. 

Import licensing is one of the tools the 

U.S. Department of Agriculture (USDA) 

uses to administer the tariff-rate quota 

(TRA) system for U.S. imports of dairy 

products. TRQs replaced strictly 

quantitative import quotas for dairy 

products on January 1, 1995, as a result 

of the Uruguay Round Agreement on 

Agriculture and the Uruguay Round 

Agreements Act. 

Under these TRQs, a low tariff rate, 

called the in-quota rate, applies to 

imports up to a specified quantity. A 

higher tariff rate called the over-quota 

rate, applies to any imports in excess of 

that amount. TRQ rates and quantities 

vary by product. 

For dairy products subject to TRQs, a 

license issued by the Foreign 

Agricultural Service (FAS) is generally 

required to import products at the inquota rate. No license is required to 

import products at the over-quota rate. 

Under the historical license 

reductions provisions, the amount of the 

license issued by FAS is reduced if the 

importer surrenders more than 50 

percent of the license during either 

three consecutive years or at least three 

out of five consecutive years. 

Specifically, section 6.25(b)(1)(i) 

provides that beginning with the 1999 

quota year, if a licensee has surrendered 

more than 50 percent of a historical 

license in each of the three prior years, 

that license will be permanently 

reduced to the average amount entered 

during those three years. Section 

6.25(b)(1)(ii) provides that beginning 

with the quota year 2001, if a licensee 

surrenders more than 50 percent of a 

historical license in at least three out of 

the five prior years, that license will be 


pwalker on PROD1PC71 with PROPOSALS
56678 Federal Register / Vol. 72, No. 192 / Thursday, October 4, 2007 / Proposed Rules 

permanently reduced to the average 

amount entered during those five years. 

These provisions are intended to 

provide a strong incentive for 

companies with historical licenses to 

utilize their licenses. 

The current regulation permitted the 

Secretary of Agriculture to suspend the 

historical license reduction provisions 

applicable prior to 1999. In 1998, the 

Secretary published a notice in the 

Federal Register suspending these 

provisions for five years, thereby 

delaying their implementation until 

2004. The provisions were suspended in 

order to ‘‘provide adequate time for 

historical licensees of European Union 

(EU) cheeses to adjust to changing 

market conditions; to find alternative 

suppliers of cheese in the EU; and to 

develop new markets to enable 

importers to fully utilize their historical 

licenses for EU cheese.’’ FAS also noted: 

‘‘The suspension is consistent with the 

intent of the U.S.-EU Uruguay Round 

bilateral agreement on maximizing 

utilization of U.S. licenses for EU 

cheese.’’

However, current market conditions 

have again prompted the need for a 

temporary suspension of the historical 

license reduction provisions. The 

production of certain cheeses in the EU, 

particularly Swiss cheese, has declined 

primarily due to a reduction in 

subsidies. Other cheeses, particularly 

processed Gruyere cheese, have 

declined in production primarily due to 

a change in consumer preferences and 

market demand. And finally, production 

of industrial grade low-fat cheeses has 

declined precipitously due to a switch 

to more profitable, consumer-oriented 

cheeses. Additionally, the expansion of 

the EU from 15 to 27 countries has 

diminished the availability of milk for 

cheese production and reduced 

availability of cheese for export. 

This temporary suspension is 

intended to improve program 

administration and reflect changes in 

the markets for cheese and other dairy 

products subject to import licensing 

requirements. The historical licenses 

provide for orderly importation of a 

wide variety of cheeses and permit 

companies to invest in market 

development with some assurance of 

future ability to provide specific types 

of cheese. 

List of Subjects in 7 CFR Part 6 

Agricultural commodities, Cheese, 

Dairy products, Imports, Reporting and 

recordkeeping requirements. 

For the reasons described in the 

preamble, the Department of Agriculture 

proposes to amend 7 CFR part 6 as 

follows: 

PART 6—IMPORT QUOTAS AND FEES 

1. The authority citation for part 6 

continues to read as follows: 

Authority: Sec. 8, 65 Stat. 75; 19 U.S.C. 

1365. 

2. Section 6.25 is amended by revising 

paragraphs (b)(1)(i) and (ii) to read as 

follows: 

§ 6.25 Allocation of Licenses 

* * * * * 

(b) * * * 

(1) * * * 

(i) Beginning with the 2012 quota 

year, a person who has surrendered 

more than 50 percent of such historical 

license in each of the prior three quota 

years will thereafter be issued a license 

in an amount equal to the average 

annual quantity entered during those 

three quota years; and 

(ii) Beginning with the 2014 quota 

year, a person who has surrendered 

more than 50 percent of such historical 

license in at least three of the prior five 

quota years will thereafter be issued a 

license in an amount equal to the 

average annual quantity entered during 

those five quota years. 

* * * * * 

Dated: September 14, 2007. 

Michael W. Yost, 

Administrator, Foreign Agricultural Service. 

[FR Doc. 07–4780 Filed 10–1–07; 2:37 pm] 

BILLING CODE 3410–10–M 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 962 

[Docket No. AMS–FV–07–0090; FV07–962–

1 AN] 

Handling Regulations for Leafy Greens 

Under the Agricultural Marketing 

Agreement Act of 1937 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Advance notice of proposed 

rulemaking. 

SUMMARY: The Agricultural Marketing 

Service (AMS) is issuing this advance 

notice of proposed rulemaking in 

response to industry interest in the 

establishment of a marketing program to 

address the handling of fresh and freshcut leafy green vegetables. The program 

would allow packers, processors, 

shippers, and marketers (collectively 

referred to as handlers) to maintain the 

quality of their products by reducing the 

risk of pathogenic contamination during 

the production and handling of leafy 

greens. Authorities and regulations 

under the program would not supplant 

those of the Food and Drug 

Administration (FDA), which is 

responsible for ensuring that foods are 

safe, wholesome, and sanitary. 

Comments are being sought from the 

public, particularly from growers, 

handlers, buyers, and sellers of leafy 

green commodities, regarding whether 

to issue such regulations under an AMS 

marketing program and if so, the 

possible substance and implementation 

of the program. 

DATES: Comments must be received by 

December 3, 2007. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning the issues contained in this 

notice. Comments must be sent to the 

Docket Clerk, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; Fax: (202) 

720–8938 or Internet: http:// 

www.regulations.gov. Comments should 

reference the docket number and the 

date and page number of this issue of 

the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Laurel May or Kathleen Finn, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue, SW., STOP 

0237, Washington, DC 20250–0237; 

Telephone: (202) 720–2491, Fax: (202) 

720–8938, or E-mail: 

laurel.may@usda.gov or 

kathy.finn@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

advance notice of proposed rulemaking 

invites comments on a potential 

regulatory program intended to 

maintain the quality of leafy green 

commodities by reducing the risk of 

pathogenic contamination during their 

production and handling. AMS is 

considering implementation of a 

marketing agreement (agreement) in 

response to heightened public and 

industry concern about the safe 

production and handling of leafy greens. 

Under the program being considered, 

handlers could voluntarily enter into 

the agreement, but signatories would 

then be required to comply with the 

agreement’s regulations, which would 

specify Best Practices for minimizing 

the risk of pathogenic contamination of 

leafy greens. The Best Practices could 

include commodity-specific production 

and handling guidelines that would be 

developed in cooperation with the 


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