[Federal Register Volume 61, Number 94 (Tuesday, May 14, 1996)]
[Proposed Rules]
[Pages 24247-24249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12057]



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Proposed Rules
                                                Federal Register
________________________________________________________________________

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.

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Federal Register / Vol. 61, No. 94 / Tuesday, May 14, 1996 / Proposed 
Rules

[[Page 24247]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR PART 51

[Docket Number FV-95-306]


Fresh Fruits, Vegetables and Other Products (Inspection, 
Certification, and Standards)

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This document would revise the regulations governing 
inspection and certification for fresh fruits, vegetables and other 
products by increasing the fees charged for the inspection of these 
products at destination markets. These revisions are necessary in order 
to recover, as nearly as practicable, the costs of performing 
inspection services at destination markets under the Agricultural 
Marketing Act of 1946.

DATES: Comments must be postmarked or courier dated on or before July 
15, 1996.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent in duplicate to the 
Office of the Branch Chief, Fresh Products Branch, Fruit and Vegetable 
Division, Agricultural Marketing Service, U.S. Department of 
Agriculture, P.O. Box 96456, Room 2049 South Building, Washington, DC 
20090-6456. Comments should note the date and page number of this issue 
of the Federal Register and will be made available for public 
inspection in the office of the Branch Chief during regular business 
hours.
FOR FURTHER INFORMATION CONTACT: Robert J. Huttenlocker, at the above 
address or call, (202) 720-0297.

SUPPLEMENTARY INFORMATION: This proposed rule has been determined to be 
not significant for purposes of Executive Order 12866, and therefore 
has not been reviewed by the Office of Management and Budget.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This action is not intended to have retroactive 
effect. This rule will not preempt any State or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this rule. There are no administrative procedures which 
must be exhausted prior to any judicial challenge to the provisions of 
this rule.
    The Agricultural Marketing Service (AMS), has certified that this 
action will not have a significant impact on a substantial number of 
small entities, as defined in the Regulatory Flexibility Act, (5 U.S.C. 
601). The proposed rule reflects certain fee increases needed to 
recover the costs of inspection services rendered in accordance with 
the Agricultural Marketing Act (AMA) of 1946.
    The AMA authorizes official inspection, grading, and certification 
on a user-fee basis, of fresh fruits, vegetables, and other products 
such as raw nuts, Christmas trees, and flowers. The AMA provides that 
reasonable fees be collected from the user of the program services to 
cover, as nearly as practicable, the costs of services rendered. This 
proposal would amend the schedule for fees and charges for inspection 
services rendered to the fresh fruit and vegetable industry to reflect 
the costs currently associated with the program.
    AMS regularly reviews these programs to determine if fees are 
adequate. Employee salaries and benefits are major program costs that 
account for approximately 86 percent of the total operating budget. A 
general and locality salary increase for Federal employees, ranging 
from 3.09 to 6.25 percent depending on locality, effective January 
1995, has materially affected program costs. Another general and 
locality salary increase, ranging from 2.39 to 2.87 percent depending 
upon locality (amounting to approximately $253,000), was effective 
January 1996; further standardization program costs must be paid for by 
user fees.
    While a concerted effort to cut costs resulted in overhead savings 
of $350,000 in FY 95 over FY 94, the last fee increase of June 1994 did 
not result in collection of enough revenue to cover all these increases 
and still maintain an adequate reserve balance (four months of costs) 
called for by Agency policy (AMS Directive 407.1) and prudent financial 
management. Currently the Fresh Products Branch (FPB) trust fund 
reserve balance for the market program is approximately $1 mil. under 
the desired level of $3.9 mil. Further action is necessary to meet 
rising costs and maintain adequate reserve balances. This action will 
assist in moving the FPB trust fund toward a more adequate level and 
will result in an estimated $614,000 in additional revenues. Projected 
FY96 revenues for market inspection are $12.555 mil with costs 
projected at $11.594 mil and a reserve of $3.093.
    Based on the Agency's analysis of increased costs since 1994, AMS 
proposes to increase the fees for destination market inspection 
services. The following table compares current fees and charges with 
proposed fees and charges for fresh fruit and vegetable inspection as 
found in 7 CFR 51.38. Unless otherwise provided for by regulation or 
written agreement between the applicant and the Administrator, the 
charges in the schedule of fees as found in Sec. 51.38 are:

----------------------------------------------------------------------------------------------------------------
                  Service                                 Current                           Proposed            
----------------------------------------------------------------------------------------------------------------
Quality and condition inspections of one to                                                                     
 four products each in quantities of 51 or                                                                      
 more packages and unloaded from the same                                                                       
 land or air conveyance:                                                                                        
    Over a half carlot equivalent of each    $74..............................  $78.                            
     product.                                                                                                   
    Half carlot equivalent or less of each   $62..............................  $65.                            
     product.                                                                                                   
    For each additional lot of the same      $12..............................  $13.                            
     product.                                                                                                   
Condition inspections of one to four                                                                            
 products each in quantities of 51 or more                                                                      
 packages and unloaded from the same land                                                                       
 or air conveyance:                                                                                             
    Over a half carlot equivalent of each    $62..............................  $65.                            
     product.                                                                                                   

[[Page 24248]]

                                                                                                                
    Half carlot equivalent or less of each   $57..............................  $60.                            
     product.                                                                                                   
    For each additional lot of the same      $12..............................  $13.                            
     product.                                                                                                   
Inspections of five or more products each                                                                       
 in quantities of 51 or more packages and                                                                       
 unloaded from the same land or air                                                                             
 conveyance:                                                                                                    
    For the first five products............  $264.............................  $277.                           
    For each additional product............  $37..............................  $39.                            
    For each additional lot of any of the    $12..............................  $13.                            
     same product.                                                                                              
Inspections of products each in quantities                                                                      
 of 50 or less packages unloaded from the                                                                       
 same land or air conveyance:                                                                                   
    For each product.......................  $37..............................  $39.                            
    For each additional lot of any of the    $12..............................  $13.                            
     same product.                                                                                              
Dock-side inspections of an individual                                                                          
 product unloaded directly from the same                                                                        
 ship:                                                                                                          
    For each package weighing less than 15   1 cent...........................  No change.                      
     pounds.                                                                                                    
    For each package weighing 15 to 29       2 cents..........................  No change.                      
     pounds.                                                                                                    
    For each package weighing 30 or more     3 cents..........................  No change.                      
     pounds.                                                                                                    
    For each additional lot of any of the    $12..............................  $13.                            
     same product.                                                                                              
Minimum charge per individual product......  $74..............................  $78.                            
Inspections performed for other purposes     $37 per hour.....................  $39 per hour.                   
 during the grader's regularly scheduled                                                                        
 work week.                                                                                                     
Overtime or holiday premium rate for all     $18.50 per hour..................  $19.50 per hour.                
 inspections performed outside the                                                                              
 hourgrader's regularly scheduled work week.                                                                    
----------------------------------------------------------------------------------------------------------------



List of Subjects in 7 CFR Part 51

    Agricultural commodities, Food grades and standards, Fruits, Nuts, 
Reporting and recordkeeping requirements, Trees, Vegetables.

PART 51--[AMENDED]

    For reasons set forth in the preamble, 7 CFR Part 51 is proposed to 
be amended as follows:
    1. The authority citation for 7 CFR Part 51 continues to read as 
follows:

    Authority: 7 U.S.C. 1621-1627.

    2. Section 51.38 is revised to read as follows:


Sec. 51.38  Basis for fees and rates.

    (a) When performing inspections of product unloaded directly from 
land or air transportation, the charges shall be determined on the 
following basis:
    (1) For products in quantities of 51 or more packages:
    (i) Quality and condition inspection of 1 to 4 products unloaded 
from the same conveyance:
    (A) $78 for over a half carlot equivalent of an individual product.
    (B) $65 for a half carlot equivalent or less of an individual 
product.
    (C) $13 for each additional lot of the same product.
    (ii) Condition only inspection of 1 to 4 products unloaded from the 
same conveyance:
    (A) $65 for over a half carlot equivalent of an individual product.
    (B) $60 for a half carlot equivalent or less of an individual 
product.
    (C) $13 for each additional lot of the same product.
    (iii) Quality and condition inspection and/or condition only 
inspection of 5 or more products unloaded from the same conveyance:
    (A) $277 for the first 5 products.
    (B) $39 for each additional product.
    (C) $13 for each additional lot of any of the same product.
    (2) For quality and condition inspection and/or condition only 
inspection of products in quantities of 50 or less packages unloaded 
from the same conveyance:
    (i) $39 for each individual product.
    (ii) $13 for each additional lot of any of the same product.
    (b) When performing inspections of palletized products unloaded 
directly from sea transportation or when palletized product is first 
offered for inspection before being transported from the dock-side 
facility, charges shall be determined on the following basis:
    (1) For each package inspected according to the following rates:
    (i) 1 cent per package weighing less than 15 pounds;
    (ii) 2 cents per package weighing 15 to 29 pounds; and
    (iii) 3 cents per package weighing 30 or more pounds.
    (2) $13 for each additional lot of any of the same product.
    (3) A minimum charge of $78 for each product inspected.
    (c) When performing inspections of products from sea containers 
unloaded directly from sea transportation or when palletized products 
unloaded directly from sea transportation are not offered for 
inspection at dockside, the car-lot fees in Sec. 51.38(a) shall apply.
    (d) When performing inspections for Government agencies, or for 
purposes other than those prescribed in the preceding paragraphs, 
including weight-only and freezing-only inspections, fees for 
inspection shall be based on the time consumed by the grader in 
connection with such inspections, computed at a rate of $39 an hour: 
Provided, That:
    (1) Charges for time shall be rounded to the nearest half hour;
    (2) The minimum fee shall be two hours for weight-only inspections, 
and one- half hour for other inspections;
    (3) When weight certification is provided in addition to quality 
and/or condition inspection, a one-hour charge shall be added to the 
carlot fee.
    (4) When inspections are performed to certify product compliance 
for Defense Personnel Support Centers, the daily or weekly charge shall 
be determined by multiplying the total hours consumed to conduct 
inspections by the hourly rate. The daily or weekly charge shall be 
prorated among applicants by multiplying the daily or weekly charge by 
the percentage of product passed and/or failed for each applicant 
during that day or week. Waiting time and overtime charges shall be 
charged directly to the applicant responsible for their incurrence.
    (e) When performing inspections at the request of the applicant 
during periods which are outside the graders regularly scheduled work 
week, a charge for overtime or holiday work shall be made at the rate 
of $19.50 per hour or portion thereof in addition to the carlot 
equivalent fee, package charge, or hourly charge specified in this 
subpart. Overtime or holiday charges for time shall be rounded to the 
nearest half hour.
    (f) When an inspection is delayed because product is not available 
or readily accessible, a charge for waiting time shall be made at the 
prevailing hourly rate in addition to the carlot equivalent fee, 
package charge, or hourly charge specified in this subpart. Waiting 
time shall be rounded to the nearest half hour.


[[Page 24249]]


    Dated: May 8, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-12057 Filed 5-13-96; 8:45 am]
BILLING CODE 3410-02-P