This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

1989

Vol. 60, No. 4

Friday, January 6, 1995

DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 6

Dairy Tariff-Rate Import Quota

Licensing

AGENCY: Office of the Secretary, USDA.

ACTION: Interim rule.

SUMMARY: This rule amends Import

Regulation 1, Revision 7 which governs

the administration of the import

licensing system for certain dairy

products which will be subject to inquota tariff rates proclaimed in the

Harmonized Tariff Schedule of the

United States (HTS), resulting from

entry into force of the Uruguay Round

Agreement on January 1, 1995. Most of

these products were subject to quotas

proclaimed under section 22 of the

Agricultural Adjustment Act of 1933, as

amended (Section 22).

DATES: This interim rule will be

effective on January 1, 1995. Comments

should be submitted on or before

February 21, 1995 to be assured of

consideration.

ADDRESSES: Comments should be sent to

Richard Warsack, Dairy Import Quota

Manager, Import Policies and Programs

Division, Room 5531–S, Foreign

Agricultural Service, U.S. Department of

Agriculture, 14th and Independence

Avenue, SW., Washington, DC 20250–

1000. All comments received will be

available for public inspection in room

5541–S at the above address.

FOR FURTHER INFORMATION CONTACT:

Diana Wanamaker, Group Leader,

Import Programs Group, Import Policies

and Programs Division, Room 5531–S,

Foreign Agricultural Service, U.S.

Department of Agriculture, 14th and

Independence Avenue, SW.,

Washington, DC 20250, or telephone

(202) 720–2916.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This interim rule is issued in

conformance with Executive Order

12866. It has been determined to be

significant for the purposes of E.O.

12866 and, therefore, has been reviewed

by the Office of Management and

Budget (OMB).

Regulatory Flexibility Act

It has been determined that the

Regulatory Flexibility Act is not

applicable to this interim rule since the

Office of the Secretary is not required by

5 U.S.C. 553 or any other provision of

law to publish a notice of proposed

rulemaking with respect to the subject

matter of this rule.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372,

which requires intergovernmental

consultation with State and local

officials. See notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115 (June 24, 1983).

Environmental Evaluation

It has been determined by an

environmental evaluation that this

action will not have a significant impact

on the quality of the human

environment. Therefore, neither an

Environmental Assessment nor an

Environmental Impact Statement is

needed.

Paperwork Reduction Act

This Interim Final Rule amends the

existing information collection as

approved by the Office of Management

and Budget (OMB) pursuant to the

Paperwork Reduction Act of 1980 (44

U.S.C. 3501 et. seq.), under OMB control

number 0551–0001, expiring June 30,

1997.

Due to the time constraints of

implementing the rule immediately, the

agency has requested emergency

clearance of this addendum from OMB.

Comments on the information collection

may be sent to the Office of Information

and Regulatory Affairs, Office of

Management and Budget, Room 10202,

NEOB, Washington, DC 20503.

Attention: Desk Officer for USDA.

Executive Order 12778

This interim rule has been reviewed

under Executive Order 12778. The

provisions of this interim rule would

have preemptive effect with respect to

any state or local laws, regulations, or

policies which conflict with such

provisions or which otherwise impede

their full implementation. The rule

would not have retroactive effect.

Background

An Advance Notice of Proposed

Rulemaking (the ANPR) was published

in the Federal Register on June 2, 1994,

seeking suggestions and comments on

methods for allocating imported dairy

products subject to the in-quota tariff

rates to be proclaimed in the HTS as a

result of the entry into force of the

Uruguay Round Agreement. The ANPR

also sought suggestions on various other

changes intended to update and make

more enforceable the provisions of

Import Regulation 1, Revision 7,

codified at 7 CFR §§ 6.20–6.24 (the

Import Regulation). Because of time

constraints this rule will deal only with

modifications of the existing rule

necessary to implement the U.S.

Uruguay Round commitments and will

become effective January 1, 1995. A

proposed rule making further changes as

envisaged in the ANPR will be

published in the future.

This interim rule issues the Import

Regulation under the authority of

section 111 of the Uruguay Round

Agreements Act and Chapter 4 and

General Note 15 of the Harmonized

Tariff Schedule of the United States

(HTS), and amends that regulation to

establish the import licensing system for

the quantities of cheese and certain

other dairy products subject to in-quota

tariff rates in the HTS. These quantities

include both the quantities which have

been subject to an absolute quota under

Section 22 as well as the additional

quantities of cheese articles and certain

non-cheese articles negotiated under the

Uruguay Round of multilateral trade

negotiations. Certain Uruguay Round

country tariff-rate quotas or increments

do not appear in Appendix 3 of this

regulation as they will only take effect

when those countries implement their

respective schedules of concessions.

The interim rule also establishes new

eligibility requirements and allocation

methods for the new quantities of noncheese items. In addition, it deletes

obsolete provisions and updates all the

references in the regulation to the HTS
1990 Federal Register / Vol. 60, No. 4 / Friday, January 6, 1995 / Rules and Regulations

to conform to the tariff schedule which

becomes effective on January 1, 1995.

Throughout the regulation, the term

‘‘annual quota’’ is replaced by ‘‘annual

tariff-rate quota,’’ and references to the

TSUS are now to the Harmonized Tariff

Schedule of the United States, the

Harmonized Tariff Schedule, or the

HTS.

The definitions in section 6.21 are

amended to: (1) replace the term

‘‘annual quota’’ with ‘‘annual tariff-rate

quota,’’ (2) add a definition of

‘‘Appendix 3’’ which sets forth the

increments in the tariff-rate quota

quantities for 1995 for certain cheese

and non-cheese articles and the total

1995 tariff-rate quota for butter

substitutes to be administered under

this regulation, (3) define the term

‘‘Harmonized Tariff Schedule of the

United States,’’ (4) change the reference

to the Licensing Authority, which has

moved within the Foreign Agricultural

Service agency structure, (5) add the

term ‘‘any country’’ which will apply to

in-quota amounts for which there is no

country allocation and to country of

origin adjustments provided for in

section 6.30, and (6) change all

references to the TSUS to read the HTS.

Section 6.23, which establishes

exceptions to the requirement for a

license to enter certain products, is

amended to conform with the

exceptions in General Note 15 of the

Harmonized Tariff Schedule of the

United States.

The eligibility provisions in section

6.25 are changed to: (1) eliminate all

one-time provisions establishing

eligibility for new historical and nonhistorical licenses which resulted from

the Tokyo Round Agreement, (2)

provide that the eligibility requirements

for supplementary licenses be applied to

Appendix 3 cheese articles and provide

eligibility criteria for non-cheese dairy

article Appendix 3 supplementary

import licenses, and (3) provide for an

application period for licenses to import

all 1995 Uruguay Round increments in

cheese and certain non-cheese dairy

articles. The eligibility requirements for

the non-cheese articles are significantly

more stringent than the existing cheese

requirements. This is to ensure that

licenses are awarded to import/

distribution or manufacturing

operations. There is, however, an

alternative eligibility requirement for

non-cheese items which requires a

greater number of shipments spread

throughout the year than the standard

criteria. The alternative is intended to

allow small companies or those seeking

less than a container-load to qualify for

license.

Section 6.26 is amended to: (1)

eliminate all one-time provisions

establishing the allocation of new

historical licenses which resulted from

the Tokyo Round Agreement, (2) update

the table of minimum non-historical

license sizes to show the HTS number

and quantity in kilograms, and (3) apply

the allocation methods for

supplementary licenses to Appendix 3

cheese articles and establish allocation

methods for Appendix 3 non-cheese

articles. The minimum and maximum

supplementary license sizes for noncheese articles are being set at higher

levels than those which currently apply

to cheese articles to reflect current

shipping practices. The allocation

method for the new amounts of noncheese articles will be a rank-order

lottery, in which applicants are

requested to number each license

request in a rank order. Once a license

is awarded from among the non-cheese

articles to an applicant, no other noncheese license will be awarded to that

applicant until all the other applicants

have received at least one non-cheese

license for which they applied,

provided that the licenses for which

they applied are not already fully

allocated.

Section 6.27 is amended to delete the

references to Customs Form 7505 which

is no longer in use. Sections 6.28, 6.29,

and 6.30 are amended solely to bring

them up-to-date and into conformance

with the HTS effective as of January 1,

1995, and to provide coverage for

Appendix 3 articles where appropriate.

Section 6.34 is deleted as it is

unnecessary in the body of the rule.

List of Subjects in 7 CFR Part 6

Agricultural commodities, Cheese,

Dairy products, Imports, and Reporting

and record keeping requirements.

Interim Rule

Accordingly, 7 CFR Part 6, Subpart—

Section 22 Import Quotas, §§ 6.20–6.34,

and Appendix 1 and Appendix 2

thereto, are amended as follows:

1. The heading for §§ 6.20–6.34 is

revised to read as follows: ‘‘Subpart—

Tariff-Rate Quotas’’.

2. The authority citation for sections

6.20–6.34 and the appendices thereto is

revised to read as follows:

Authority: Additional U.S. Notes 6, 7, 12,

14, and 16–25 to Chapter 4 and General Note

15 of the Harmonized Tariff Schedule of the

United States (19 U.S.C. 1202), Pub. L. 97–

258, 96 Stat. 1051 (31 U.S.C. 9701), and sec.

111, Pub. L. 103–465, 108 Stat. 4819.

3. Section 6.20 is revised to read as

follows:

§ 6.20 Determination.

Additional U.S. Notes 6, 7, 12, 14, and

16 through 25 to Chapter 4 of the

Harmonized Tariff Schedule of the

United States provide that imports of

the articles enumerated in those notes

require import licenses issued by the

U.S. Department of Agriculture.

Additional U.S. Notes 16 through 25

also provide that unfilled allocations

may be reallocated in accordance with

regulations issued by the U.S.

Department of Agriculture. General Note

15 provides for certain exceptions that

require the approval of the Secretary of

Agriculture. These regulations shall

apply to all articles subject to tariff-rate

quotas, and the exceptions thereto, in

accordance with these notes.

4. Section 6.21 is revised to read as

follows:

§ 6.21 Definitions.

Affiliate means any person or legal

entity which owns or is owned by, in

total or in part, directly or indirectly, or

controls or is controlled by another

person, persons or legal entity. For a

corporation, ownership interest will be

the controlling criterion. If 5 percent or

more equity interest in the aggregate is

owned or controlled in a corporation,

partnership, estate, or trust by or for a

person, a corporation, a partnership, or

a beneficiary of an estate or a trust, the

interest will be considered as owned or

controlled by the person, partnership,

corporation, estate or trust. Ownership

interest in any person or legal entity

may be attributed to another person or

entity in accordance with § 6.25(b)(3),

thereby causing the person or entity to

whom the ownership interest has been

attributed to be defined as an ‘‘affiliate’’

even though such persons or legal

entities have no direct relation with

each other.

Annual tariff-rate quota means the

quantity of an article which may be

entered in a quota year as provided for

in Appendix 1, Appendix 2 and

Appendix 3 at the in-quota tariff rate.

Any country means those countries or

territories listed in Annex A, Schedule

C of the Harmonized Tariff Schedule.

Appendix 1 means Appendix 1 to this

subpart. Definitions of articles in this

appendix are the same as those

provided for in the Additional U.S.

Notes to Chapter 4 of the Harmonized

Tariff Schedule.

Appendix 2 means Appendix 2 to this

subpart. Definitions of articles in this

appendix are the same as those

provided for in the Additional U.S.

Notes to Chapter 4 of the Harmonized

Tariff Schedule.

Appendix 3 means Appendix 3 to this

subpart. Definitions of articles in this
Federal Register / Vol. 60, No. 4 / Friday, January 6, 1995 / Rules and Regulations 1991

appendix are the same as those

provided for in the Additional U.S.

Notes to Chapter 4 of the Harmonized

Tariff Schedule.

Article means any Harmonized Tariff

Schedule article referred to in Appendix

1, Appendix 2, or Appendix 3 of this

supart.

Associate means a party connected

with one or more parties, formally or

informally, directly or indirectly, with

the common purpose of obtaining

eligibility for additional licenses, one

party intending to use, (and benefit

economically from such use) directly or

indirectly the licenses that the other

may acquire. Two or more associates of

a third party shall not be deemed to be

associates of one another due to such

third-party association only.

Authorized agent means an agent as

used in 19 CFR 141.31(a) for whom the

licensee has filed with the District

Director of Customs a limited power of

attorney using Customs Form 5291

authorizing such agent to act for, but

only in, the licensee’s name.

Basic annual allocation refers to

historical quota shares only and means

the quota share of a licensee for an

article before any reduction as

authorized under § 6.26(d) has been

effected. It will be calculated on the

basis of the annual average amount

entered by a licensee during a

predetermined representative base

period.

Cheese or cheese products means

those cheeses and cheese products for

which standards of identity have been

promulgated by the Food and Drug

Administration and/or which are

encompassed within 21 CFR part 133.

Country of origin and/or Supplying

country mean the country in which the

article subject to the regulation was

produced or manufactured as defined

under 19 CFR 134.1(b).

Date of entry is the date when the

specified Customs entry form is

properly executed and deposited,

together with estimated duties and any

related documents required by law or

regulation to be filed with such form at

the time of entry, with the appropriate

Customs Officer.

Department means the United States

Department of Agriculture.

EC means the twelve European

Community countries, viz., Belgium,

Denmark, the Federal Republic of

Germany, France, Greece, Ireland, Italy,

Luxembourg, the Netherlands, Portugal,

Spain and the United Kingdom, which

for the purposes of this regulation shall

be deemed as one country of origin.

Eligible applicant means a person

applying for a license to enter an article

who has established, to the satisfaction

of the Licensing Authority, eligibility to

enter such article, in accordance with

§ 6.25.

Enter means to make entry, or

withdrawal from warehouse, for

consumption by deposit with, and

acceptance by, the appropriate Customs

officer of the properly executed entry

documents, including invoices, bills of

lading and payment of estimated duties.

Entire dairy products business means

the total assets and operations of the

foreign and domestic aspects of a

business pertaining to articles subject to

the provisions of this regulation.

Entrepreneurial use means the

processing or sale of the article entered

pursuant to the license as a part of the

ordinary conduct of business by a

licensee who is managing and assuming

the risk of such business. Such term

does not include one who is functioning

as a mere supplier of license.

Harmonized Tariff Schedule means

the Harmonized Tariff Schedule of the

United States.

Licensee means any person to whom

a license has been issued under the

regulation.

Licensing Authority means the Dairy

Import Quota Manager, Import Policies

and Programs Division, Foreign

Agricultural Service, U.S. Department of

Agriculture, or any other officer or

employee of the Department acting in

his or her behalf.

Other countries refers to countries

sharing a common tariff-rate quota

which are not listed as having separate

tariff-rate quota allocations in the

Additional U.S. Notes to Chapter 4 of

the Harmonized Tariff Schedule and for

the purposes of the regulation are

deemed as one country of origin.

Person includes any individual, firm,

corporation, partnership, association, or

other legal entity. It also includes any

national government (other than the

Government of the United States and

any agency thereof).

Postmark means the postage

cancellation mark applied by the U.S.

Post Office showing the post office and

date of mailing. This does not include

metered postage affixed by the applicant

or any other private entity.

Quota means the articles and

quantities of such articles subject to an

in-quota rate of duty provided for in the

Additional U.S. Notes to Chapter 4 of

the Harmonized Tariff Schedule and

covered by this regulation.

Quota share means that part of the

annual tariff-rate quota of an article

listed in Appendix 1, Appendix 2, or

Appendix 3 of this subpart for which a

person is eligible.

Quota year means the 12–month

period beginning on January 1 of any

given year.

Regulation means the provisions

contained in the Licensing Regulation of

this subpart.

United States means the Customs

Territory of the United States, which is

limited to the United States, the District

of Columbia and Puerto Rico.

5. Section 6.22 is amended by revising

paragraph (a) to read as follows:

§ 6.22 Prohibitions and restrictions on

importers.

(a) No person may enter or cause to

be entered any article listed in

Appendix 1, Appendix 2, or Appendix

3, except as provided in § 6.23 or as

authorized by a license issued pursuant

to this regulation.

* * * * *

6. Section 6.23 is revised to read as

follows:

§ 6.23 Exceptions.

Licenses are not required for the entry

of:

(a) Products imported by or for the

account of any agency of the U.S.

Government.

(b) Products imported for the personal

use of the importer, provided that the

net quantity of such product in any one

shipment does not exceed five

kilograms.

(c) Products, which will not enter the

commerce of the United States,

imported as samples for taking orders,

for exhibition, display or sampling at a

trade fair, for research, for use by

embassies of foreign governments or for

testing of equipment, provided that

written approval of the Licensing

Authority is obtained.

7. Section 6.24 is revised to read as

follows:

§ 6.24 Application for license.

Applications of the Licensing

Authority for the issuance of licenses to

enter articles must be made in writing,

addressed to the Import Licensing

Group, Room 5531–S, Import Policies

and Programs Division, Foreign

Agricultural Service, U.S. Department of

Agriculture, Washington, D.C. 20250–

1000. Each application must indicate

the Additional U.S. Note number of the

Harmonized Tariff Schedule and the

country of origin of the article.

Unpostmarked applications will not be

approved by the Licensing Authority.

8. Section 6.25 is amended by revising

paragraph (a), the introductory text of

paragraph (c)(1), paragraphs (c)(1)(ii),

(c)(1)(iii), (c)(2) and (c)(3) to read as

follow:
1992 Federal Register / Vol. 60, No. 4 / Friday, January 6, 1995 / Rules and Regulations

§ 6.25 Eligibility.

(a) Historical eligibility. Historical

eligibility for licenses to enter in-quota

shares of articles subject to tariff-rate

quotas which are shown in Appendix 1

and Appendix 2 of this subpart, has

already been established.

* * * * *

(c)(1) Supplementary license

eligibility for specific articles of cheese

listed in Appendix 2 and Appendix 3 of

this subpart will be established:

(i) * * *

(ii) By application by a person having

historical eligibility for a particular

article shown in Appendix 2 of this

subpart from the country of origin for

which such person is seeking

supplementary license; or

(iii) By being endorsed in writing by

the government of the supplying

country as a preferred importer, with

such endorsement being sent directly

from the government of the supplying

country through appropriate channels to

the Licensing Authority, and for articles

in Appendix 2 of this subpart by

meeting one or both of qualifications in

paragraphs (c)(1)(i) and (ii) of this

section. For articles in Appendix 3 of

this subpart such qualifications must be

met beginning with the 1996 quota year.

Endorsement by the government of a

supplying country of a person who is

known to the Licensing Authority to

have at any time violated any provision

of this or any other regulation or law of

the United States applicable to

international commerce will not be

recognized by the Licensing Authority.

(2) Notwithstanding paragraph (b)(4)

of this section, certification required to

establish supplementary eligibility for

license for articles under Appendix 3 of

this subpart, must be postmarked no

earlier than January 30, 1995 and no

later than February 20, 1995. Importers

who may have already submitted

supplementary license certification for

cheese during the application period

which ended November 1, 1994 may

request license for cheese articles under

Appendix 3 of this subpart by

submitting an application, provided by

the Licensing Authority upon request,

without further documentation,

postmarked as required in this

paragraph.

(3) Supplementary eligibility for

specific non-cheese articles listed in

Appendix 3 of this subpart will be

established by:

(i) Submission of documentary

evidence acceptable to the Licensing

Authority as required under paragraphs

(b)(2)(i) and (ii) of this section, and

(ii) Providing documentary evidence

that the applicant has made at least two

separate commercial entries or exports

of any dairy product totaling not less

than 38,000 kilograms during the 1994

calendar year; or at least eight separate

commercial entries or exports totaling

not less than 18,000 kilograms, each

entry or export being a minimum of

2,200 kilograms, with a minimum of

two transactions taking place in each of

at least three quarters of the 1994

calendar year. U.S. Customs Service

Consumption entry documents (Entry

Summary Form 7501) and proof of

payment in the applicant’s name for the

entered product and the duty must be

provided showing that such person has

made the above commercial entries or in

the case of a person seeking eligibility

on the basis of exports, U.S. Department

of Commerce, Bureau of the Census

Form 7525–V and the invoice or other

proof that the applicant has made the

exports of dairy products must be

provided; or

(iii)(A) Being listed in the Dairy Plants

Surveyed and Approved for USDA

Grading Service, and

(B) certifying that the product will be

used directly in the plant’s own

manufacturing or sales/distribution

program.

* * * * *

9. Section 6.26 is amended by

removing paragraphs (a)(3) through

(a)(6) and revising the table in paragraph

(b)(1) to read as follows:

§ 6.26 Allocation of annual quota and

issuance of licenses.

* * * * *

(b) * * *

(1) * * *

Article

HTS

note

No.

Minimum

quantity

(kilograms)

Dried buttermilk and

whey .......................... 12 1,133

Dried skimmed milk ...... 7 2,267

Dried whole milk ........... 8 453

Butter ............................ 6 453

Blue-mold cheese ......... 17 2,267

Cheddar cheese ........... 18 4,535

American-type cheese .. 19 4,535

Edam and Gouda

cheese ....................... 20 3,175

Italian-type cow’s milk

cheese ....................... 21 2,267

Swiss or Emmenthaler

cheese with eye formation ........................ 25 4,535

Swiss or Emmenthaler

cheese other than

eye-formation Gruyere Process ............. 22 4,535

Other cheese NSPF ..... 16 18,143

Other cheese low fat .... 23 4,535

* * * * *

§ 6.26 [Amended]

10. Section 6.26 is further amended

by removing paragraph (b)(5) and

revising the introductory text of

paragraph (c) and the introductory text

of paragraph (c)(3) to read as follows:

(c) Supplementary licenses

(pertaining to articles in Appendix 2

and Appendix 3 of this subpart) for

cheese articles:

* * * * *

(c)(3) A supplementary quota share

for a cheese article in Appendix 2 or

Appendix 3 of this subpart from a

particular country of origin other than

those provided for in paragraph (c)(2) of

this section will be determined on the

following basis:

* * * * *

11. Section 6.26 is further amended

by removing paragraph (f) and by

redesignating paragraphs (d) and (e) as

paragraphs (e) and (f). A new paragraph

(d) is added to read as follows:

§ 6.26 Allocation of annual quota and

issuance of licenses.

* * * * *

(d) Supplementary licenses

(pertaining to articles in Appendix 3 of

this subpart) for non-cheese articles:

(1) A person with its affiliate(s) or

associate(s) will be considered only as

one person for the purpose of allocation

of such supplementary quota shares.

However, a person with an Appendix 1

historical license for such article

initially issued for a quota year prior to

1995 is not precluded from applying for

such supplementary quota shares.

(2) The size of a supplementary quota

share issued to an eligible applicant

shall not exceed 57,000 kilograms.

(3) If, after applications for

supplementary licenses have been

evaluated and tabulated, the Licensing

Authority determines that eligible

applicants for shares of a particular noncheese tariff-rate quota in Appendix 3 of

this subpart have appropriately

requested amounts which together

exceed the amount available for

allocation, the Licensing Authority shall

first assign quota shares of not less than

the minimum share as indicated below

to each applicant and then prorate the

remaining portion available for

allocation among them. The minimum

share shall be as follows:

(i) 19,000 kilograms where the total

amount available for allocation is less

than 550,000 kilograms;

(ii) 38,000 kilograms where the total

amount available for allocation is

greater than 550,001 kilograms.

(4) If applying for more than one

supplementary license for non-cheese

articles covered by this regulation, the
Federal Register / Vol. 60, No. 4 / Friday, January 6, 1995 / Rules and Regulations 1993

applicant must rank order these requests

by the applicable U.S. Additional Note

number for the article being requested.

If, after applications for supplementary

licenses have been evaluated and

tabulated according to the rank order

submitted, the Licensing Authority

determines that the number of eligible

applicants for a minimum tariff-rate

quota share for a particular article from

a particular country in Appendix 3 of

this subpart exceeds the number of

available minimum tariff-rate quota

shares for that article, the Licensing

Authority will then allocate the licenses

by random selection. However, once a

license is awarded from among the noncheese articles to an applicant, no other

non-cheese license will be awarded to

that applicant until all the other

applicants have at least received one

such license for which they applied,

provided that the licenses for which

they applied are not already fully

allocated. A single tariff-rate quota share

for a particular article of less than the

minimum may be issued, if appropriate,

to facilitate full allocation of a particular

tariff-rate quota.

§ 6.27 [Amended]

12. Section 6.27 is amended in

paragraph (f) by removing ‘‘7505’’ and

adding ‘‘7501’’; and in paragraph (h) by

removing the words ‘‘entry Form 7501

or Customs warehouse withdrawal Form

7505’’ and adding in their place ‘‘Form

7501’’ and removing the words ‘‘or

7505’’.

13. Section 6.28 is amended by

revising the first sentence to read as

follows:

§ 6.28 Records and inspection.

Any person making an entry, except

as provided in § 6.23, of an article listed

in Appendix 1, Appendix 2, or

Appendix 3 of this subpart is required

to retain all records, including invoices

of all purchases, entries, withdrawals,

sales and deliveries of such articles for

a period of not less than two years

subsequent to the end of the quota year

during which entry was made.

§ 6.29 [Amended]

14. Section 6.29 is amended by

removing all references in paragraph

(b)(3) to the ‘‘Dairy, Livestock and

Poultry Division’’ and adding ‘‘Import

Policies and Programs Division’’ in its

place.

§ 6.30 [Amended]

15. Section 6.30 is amended in

paragraph (a) by removing paragraphs

(a) (1) and (2) and the colon at the end

of the introductory text and by adding

the following text:

§ 6.30 Adjustment of countries of origin.

(a) * * * any country of origin

(global) except where Uruguay Round

commitments require the consent of the

supplying country. In such case,

consent will be sought and action taken

only if it is granted for portions of the

tariff-rate quota subject to this

requirement.

§ 6.34 [Removed]

16. Section 6.34 is removed.

17. Appendix 1 and Appendix 2 of

the subpart following § 6.34 are revised

and a new Appendix 3 is added as

follows:

APPENDIX 1—ARTICLES SUBJECT TO THE HISTORICAL AND NONHISTORICAL LICENSING PROVISIONS OF THE IMPORT

REGULATION 1, REVISION 7, AND RESPECTIVE ANNUAL TARIFF-RATE QUOTAS FOR EACH QUOTA YEAR

Article by HTS Note No.

Annual historical/

nonhistorical

quota (kilograms)

Group I:

(a) Butter (Note 6) .................................................................................................................................................................... 320,689

EC ...................................................................................................................................................................................... 96,161

New Zealand ..................................................................................................................................................................... 150,593

Other Countries ................................................................................................................................................................. 73,935

(b) Dried whole milk (Note 8) ................................................................................................................................................... 3,175

(c) Dried skimmed milk (Note 7) .............................................................................................................................................. 819,641

(d) Dried buttermilk and whey (Note 12) .................................................................................................................................. 224,981

Group II:

(a) Edam and Gouda cheese (Note 20) .................................................................................................................................. 5,606,401

EC ...................................................................................................................................................................................... 5,248,000

Norway .............................................................................................................................................................................. 167,000

Argentina ........................................................................................................................................................................... 125,000

Sweden .............................................................................................................................................................................. 41,000

Other countries .................................................................................................................................................................. 25,401

(b) Blue-mold cheese (except Stilton made in England) and cheese and substitutes for cheese containing or processed

from blue-mold cheese (Note 17) ......................................................................................................................................... 2,257,001

EC ...................................................................................................................................................................................... 2,255,000

Argentina ........................................................................................................................................................................... 2,000

Other countries .................................................................................................................................................................. 1

Group III:

(a) Cheddar cheese and cheese and substitutes for cheese containing or processed from Cheddar cheese (Note 18) ..... 3,667,889

EC ...................................................................................................................................................................................... 263,000

Australia ............................................................................................................................................................................. 769,000

New Zealand ..................................................................................................................................................................... 2,496,000

Other countries .................................................................................................................................................................. 139,889

(b) American-type cheese, including Colby, washed curd, and granular cheese (but not including cheddar) and cheese

and substitutes for cheese containing or processed from such American-type cheese (Note 19) ..................................... 2,708,556

EC ...................................................................................................................................................................................... 254,000

Australia ............................................................................................................................................................................. 762,000

New Zealand ..................................................................................................................................................................... 1,524,000

Other countries .................................................................................................................................................................. 168,556

Group IV:

(a) Italian-type cheese made from cow’s milk (Romano made from cow’s milk, Reggiano, Parmesano, Provolone,

Provolette, Sbrinz, and Goya not in original loaves) (Note 21) ........................................................................................... 5,625,064

EC ...................................................................................................................................................................................... 1,810,000
1994 Federal Register / Vol. 60, No. 4 / Friday, January 6, 1995 / Rules and Regulations

APPENDIX 1—ARTICLES SUBJECT TO THE HISTORICAL AND NONHISTORICAL LICENSING PROVISIONS OF THE IMPORT

REGULATION 1, REVISION 7, AND RESPECTIVE ANNUAL TARIFF-RATE QUOTAS FOR EACH QUOTA YEAR—Continued

Article by HTS Note No.

Annual historical/

nonhistorical

quota (kilograms)

Argentina ........................................................................................................................................................................... 3,802,000

Other countries .................................................................................................................................................................. 13,064

Group V:

(a) Swiss or Emmenthaler cheese with eye formation (Note 25) ............................................................................................ 9,260,276

EC ...................................................................................................................................................................................... 1,767,000

Austria ............................................................................................................................................................................... 3,729,000

Finland ............................................................................................................................................................................... 2,772,000

Israel .................................................................................................................................................................................. 27,000

Norway .............................................................................................................................................................................. 758,000

Switzerland ........................................................................................................................................................................ 122,000

Other countries .................................................................................................................................................................. 85,276

(b) Swiss or Emmenthaler cheese other than with eye formation. Gruyere-process cheese, and cheese and substitutes

for cheese containing, or processed from such cheese (Note 22) ...................................................................................... 5,061,833

EC ...................................................................................................................................................................................... 2,603,000

Austria ............................................................................................................................................................................... 638,000

Finland ............................................................................................................................................................................... 728,000

Switzerland ........................................................................................................................................................................ 1,013,000

Other countries .................................................................................................................................................................. 79,833

(c) Cheese and substitutes for cheese (except cheese not containing cow’s milk; soft ripened cow’s milk cheese; cheese

(except cottage cheese) containing 0.5 percent or less by weight of butterfat), and articles within the scope of other

tariff-rate quotas provided for in additional U.S. Notes 17 through 25, inclusive, to this chapter (Note 16) ....................... 18,448,859

EC ...................................................................................................................................................................................... 10,724,000

Austria ............................................................................................................................................................................... 90,000

Australia ............................................................................................................................................................................. 56,000

Canada .............................................................................................................................................................................. 1,141,000

Finland ............................................................................................................................................................................... 562,000

Iceland ............................................................................................................................................................................... 294,000

Israel .................................................................................................................................................................................. 66,000

New Zealand ..................................................................................................................................................................... 3,427,000

Norway .............................................................................................................................................................................. 150,000

Poland ............................................................................................................................................................................... 936,224

Sweden .............................................................................................................................................................................. 774,000

Switzerland ........................................................................................................................................................................ 98,000

Other countries .................................................................................................................................................................. 130,635

(d) Cheese and substitutes for cheese, containing 0.5 percent or less by weight of butterfat (except articles within the

scope of other tariff-rate quotas provided for in additional U.S. Notes 16 through 22, inclusive, or additional U.S. Notes

24 and 25 to this chapter) and margarine cheese (Note 23) ............................................................................................... 3,951,908

EC ...................................................................................................................................................................................... 3,777,000

Poland ............................................................................................................................................................................... 174,907

Other countries .................................................................................................................................................................. 1

APPENDIX 2—ARTICLES SUBJECT TO THE HISTORICAL AND SUPPLEMENTARY LICENSING PROVISIONS OF IMPORT

REGULATION 1, REVISION 7, AND RESPECTIVE ANNUAL TARIFF-RATE QUOTAS FOR EACH QUOTA YEAR

Article by HTS Note No.

Annual historical/

supplementary

quota (kilograms)

Group II:

(c) Blue-mold cheese (except stilton made in England), and cheese and substitutes for cheese containing, or processed

from Blue-mold cheese (Note 17) ........................................................................................................................................ 224,000

EC ...................................................................................................................................................................................... 224,000

Group III:

(a) Cheddar cheese, and cheese and substitutes for cheese containing, or processed from Cheddar cheese (Note 18) ... 1,035,000

New Zealand ..................................................................................................................................................................... 604,000

Australia ............................................................................................................................................................................. 431,000

(b) American-type cheese, including Colby, washed curd, and granular cheese (but not including Cheddar) and cheese

and substitutes for cheese containing, or processed from such American-type cheese (Note 19) .................................... 714,000

New Zealand ..................................................................................................................................................................... 476,000

Australia ............................................................................................................................................................................. 238,000

Group IV:

(a) Italian-type cheese made from cow’s milk, (Romano made from cow’s milk, Reggiano, Parmesano, Provolone,

Provolette, Sbrinz and Goya not in original loaves) (Note 21) ............................................................................................ 2,691,000

Argentina ........................................................................................................................................................................... 691,000

EC ...................................................................................................................................................................................... 1,572,000

Uruguay ............................................................................................................................................................................. 428,000

Group V:

(a) Swiss or Emmenthaler cheese with eye formation (Note 25) ............................................................................................ 22,595,000
Federal Register / Vol. 60, No. 4 / Friday, January 6, 1995 / Rules and Regulations 1995

APPENDIX 2—ARTICLES SUBJECT TO THE HISTORICAL AND SUPPLEMENTARY LICENSING PROVISIONS OF IMPORT

REGULATION 1, REVISION 7, AND RESPECTIVE ANNUAL TARIFF-RATE QUOTAS FOR EACH QUOTA YEAR—Continued

Article by HTS Note No.

Annual historical/

supplementary

quota (kilograms)

EC ...................................................................................................................................................................................... 4,233,000

Argentina ........................................................................................................................................................................... 80,000

Austria ............................................................................................................................................................................... 2,551,000

Australia ............................................................................................................................................................................. 500,000

Canada .............................................................................................................................................................................. 70,000

Finland ............................................................................................................................................................................... 5,428,000

Iceland ............................................................................................................................................................................... 300,000

Norway .............................................................................................................................................................................. 6,125,000

Switzerland ........................................................................................................................................................................ 3,308,000

(b) Swiss or Emmenthaler cheese other than with eye formation. Gruyere-process cheese; and cheese and substitutes

for cheese containing, or processed from such cheese (Note 22) ...................................................................................... 2,413,000

EC ...................................................................................................................................................................................... 1,022,000

Austria ............................................................................................................................................................................... 282,000

Finland ............................................................................................................................................................................... 272,000

Switzerland ........................................................................................................................................................................ 837,000

(c) Cheese and substitutes for cheese (except cheese not containing cow’s milk; soft ripened cow’s milk cheese; cheese

(except cottage cheese) containing 0.5 percent or less by weight of butterfat), and articles within the scope of other

import quotas provided for in additional U.S. Notes 17 through 25, inclusive, to this chapter) (Note 16) .......................... 22,383,000

EC ...................................................................................................................................................................................... 9,732,000

(of which 353,000 are reserved for Portugal)

Argentina ........................................................................................................................................................................... 100,000

Australia ............................................................................................................................................................................. 1,244,000

Austria ............................................................................................................................................................................... 560,000

Finland ............................................................................................................................................................................... 738,000

Iceland ............................................................................................................................................................................... 29,000

Israel .................................................................................................................................................................................. 607,000

New Zealand ..................................................................................................................................................................... 7,895,000

Sweden .............................................................................................................................................................................. 285,000

Switzerland ........................................................................................................................................................................ 1,122,000

Other Countries ................................................................................................................................................................. 71,000

(d) Cheese and substitutes for cheese, containing 0.5 percent or less by weight of butterfat (except articles within the

scope of other import quotas provided for in additional U.S. Notes 16 through 22, inclusive, or additional U.S. Notes 24

and 25 to this chapter) and margarine cheese (Note 23) .................................................................................................... 1,523,000

EC ...................................................................................................................................................................................... 223,000

Israel .................................................................................................................................................................................. 50,000

New Zealand ..................................................................................................................................................................... 1,000,000

Sweden .............................................................................................................................................................................. 250,000

APPENDIX 3—CERTAIN ARTICLES SUBJECT TO THE SUPPLEMENTARY LICENSING PROVISIONS OF IMPORT REGULATION 1,

REVISION 7, AND RESPECTIVE ANNUAL TARIFF-RATE IMPORT QUOTAS FOR 1995

Article by HTS Annual Note No.

Annual Supplementary quota

(kilograms)

Butter (Note 6) .......................................................................................................................................................................... 3,656,311

Dried Skim Milk (Note 7) .......................................................................................................................................................... 441,359

Dried Whole Milk (Note 8) ........................................................................................................................................................ 368,125

Butter Substitutes Containing over 45% by weight of butterfat and butteroil (Note 14) ......................................................... 3,480,500

Cheese and substitutes for cheese (except cheese not containing cow’s milk; soft ripened cow’s milk cheese; cheese

(except cottage cheese) containing 0.5 percent or less by weight of butterfat), and articles within the scope of other

tariff-rate quotas provided for in additional U.S. Notes 17 through 25, inclusive, to this chapter) (Note 16) ..................... 2,441,666

Australia ............................................................................................................................................................................. 291,666

Costa Rica ......................................................................................................................................................................... 1,000,000

Czech Republic ................................................................................................................................................................. 200,000

Slovak Republic ................................................................................................................................................................. 600,000

Uruguay ............................................................................................................................................................................. 250,000

Any Country ....................................................................................................................................................................... 100,000

Blue-mold cheese (except Stilton made in England) and cheese and substitutes for cheese containing or processed from

blue-mold cheese (Note 17) ................................................................................................................................................. 63,333

Chile .................................................................................................................................................................................. 13,333

Czech Republic ................................................................................................................................................................. 50,000

Cheddar cheese and cheese and substitutes for cheese containing or processed from Cheddar cheese (Note 18) ........... 1,245,000

Australia ............................................................................................................................................................................. 208,333

Chile .................................................................................................................................................................................. 36,667

Czech Republic ................................................................................................................................................................. 50,000

New Zealand ..................................................................................................................................................................... 850,000

Any Country ....................................................................................................................................................................... 100,000
1996 Federal Register / Vol. 60, No. 4 / Friday, January 6, 1995 / Rules and Regulations

APPENDIX 3—CERTAIN ARTICLES SUBJECT TO THE SUPPLEMENTARY LICENSING PROVISIONS OF IMPORT REGULATION 1,

REVISION 7, AND RESPECTIVE ANNUAL TARIFF-RATE IMPORT QUOTAS FOR 1995—Continued

Article by HTS Annual Note No.

Annual Supplementary quota

(kilograms)

Edam and Gouda cheese, and cheese and substitutes for cheese, containing, or processed from, Edam and Gouda

Cheese (Note 20) ................................................................................................................................................................. 210,000

Argentina ........................................................................................................................................................................... 110,000

Czech Republic ................................................................................................................................................................. 100,000

Italian-Type cheese made from cow’s milk (Romano made from cow’s milk, Reggiano, Parmesano, Provolone,

Provolette, Sbrinz, and Goya not in original loaves) and cheese and substitutes for cheese containing, or processed

from, such Italian-type cheese, whether or not in original loaves (Note 21) ....................................................................... 3,123,333

Argentina ........................................................................................................................................................................... 1,890,000

Uruguay ............................................................................................................................................................................. 750,000

Hungary ............................................................................................................................................................................. 400,000

Romania ............................................................................................................................................................................ 83,333

Swiss-Emmenthaler cheese with eye formation (Note 25) ...................................................................................................... 800,000

Czech Republic ................................................................................................................................................................. 400,000

Hungary ............................................................................................................................................................................. 400,000

Signed at Washington, D.C., on December

27, 1994.

Mike Espy,

Secretary of Agriculture.

[FR Doc. 95–298 Filed 1–3–95; 3:51 pm]

BILLING CODE 3410–10–P

Federal Crop Insurance Corporation

7 CFR Part 400

Subpart T—Federal Crop Insurance

Reform Act of 1994; Regulations for

Implementation

RIN 0563–AB11

AGENCY: Federal Crop Insurance

Corporation.

ACTION: Interim rule.

SUMMARY: The Federal Crop Insurance

Corporation (‘‘FCIC’’) hereby amends its

General Administrative Regulations

located at 7 CFR part 400 by adding

subpart T. The intended effect of this

interim rule is to provide noninsured

producers, policyholders and insurance

companies the policies and regulations

applicable to the Catastrophic Risk

Protection Program and provide other

changes in FCIC insurance programs to

comply with the statutory mandates of

the Federal Crop Insurance Act as

amended by the Federal Crop Insurance

Reform Act of 1994.

DATES: This rule is effective January 6,

1995. Written comments, data, and

opinions on this rule will be accepted

until close of business March 7, 1995

and will be considered when the rule is

to be made final.

ADDRESSES: Written comments, data,

and opinion on this interim rule should

be sent to Diana Moslak, Regulatory and

Procedural Development Staff, Federal

Crop Insurance Corporation, USDA,

Washington, D.C. 20250. Hand or

messenger delivery may be made to

Suite 500, 2101 L Street, N.W.,

Washington D.C. Written comments will

be available for public inspection and

copying in the Office of the Manager,

2101 L Street, N.W., 5th Floor,

Washington, D.C., during regular

business hours, Monday through Friday.

FOR FURTHER INFORMATION CONTACT: For

further information and a copy of the

Regulatory Impact Analysis to the

regulations for implementation of the

Federal Crop Insurance Reform Act of

1994, contact Diana Moslak, Federal

Crop Insurance Corporation, U.S.

Department of Agriculture, Washington,

D.C. 20250. Telephone (202) 254–8314.

SUPPLEMENTARY INFORMATION: This

action has been reviewed under United

States Department of Agriculture

(‘‘USDA’’) procedures established by

Executive Order 12866 and

Departmental Regulation 1512–1. This

action constitutes a review as to the

need, currency, clarity, and

effectiveness of these regulations under

those procedures. The sunset review

date established for these regulations is

December 1, 1999.

This rule has been determined to be

‘‘economically significant’’ for the

purposes of Executive Order 12866, and

therefore, has been reviewed by the

Office of Management and Budget

(‘‘OMB’’).

A Regulatory Impact Analysis has

been completed and is available to

interested persons at the address listed

above. In summary, the analysis finds

that crop insurance reform generally is

expected to result in net positive

benefits to producers, taxpayers, and

society. The effects on individual

producers compared to payments under

ad hoc disaster programs depends

primarily on the farm program payment

yield compared to the farm’s actual

yield and market prices. In general,

however, the reform is expected to

result in less volatility of producer’s

incomes and lesser risk of no income

due to adverse weather events. Rural

communities and farmers will benefit

from the certainty of payments in times

of catastrophic yield losses. The

Government and taxpayers will benefit

from a single disaster protection

program and consequent reduced

Federal outlays. Although some

producers (previous non-participants in

crop insurance) will have an added

burden to make application and report

yields and acreage, the benefits in terms

of greater risk protection outweigh the

costs.

The information collection and

record-keeping requirements set forth in

this interim rule have been submitted to

OMB for emergency clearance under 7

CFR part 402.

It has been determined under section

6(a) of Executive Order 12612,

Federalism, that this rule does not have

sufficient federalism implication to

warrant the preparation of a Federalism

Assessment. The provisions and

procedures contained in this rule will

not have a substantial direct effect on

states or their political subdivisions, or

on the distribution of power and

responsibilities among the various

levels of government.

Under the Regulatory Flexibility Act

(5 U.S.C. § 605), this regulation will not

have a significant impact on a

substantial number of small entities.

Producers will be able to certify to their

historical production levels at the time

of application based on existing records,

or they may elect to base their insurance

on assigned yields, which will not

require maintenance of production

records by the insurance agent. The