[Federal Register: March 3, 2004 (Volume 69, Number 42)]
[Rules and Regulations]               
[Page 9924-9926]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03mr04-2]                         

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1230

[No. LS-03-08]

 
Pork Promotion, Research, and Consumer Information Order--
Decrease in Importer Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: Pursuant to the Pork Promotion, Research, and Consumer 
Information Act of 1985 (Act) and the Pork Promotion, Research, and 
Consumer Information Order (Order) issued thereunder, this rule will 
decrease by five-hundredths to seven-hundredths of a cent per pound the 
amount of the assessment per pound due on imported pork and pork 
products to reflect a decrease in the 2002 average price for domestic 
barrows and gilts. This action will bring the equivalent market value 
of the live animals from which such imported pork and pork products 
were derived in line with the market values of domestic porcine 
animals. In addition, this rule deletes two live porcine animal 
Harmonized Tariff Schedule (HTS) numbers--0103.91.0000 and 
0103.92.0000--and adds five new live porcine animal HTS numbers 
0103.91.0010, 0103.91.0020, 0103.91.0030, 0103.92.0010, and 
0103.92.0090--to the table in Sec.  1230.110(a) in order to update the 
HTS numbers used for live porcine animals.

EFFECTIVE DATE: April 2, 2004.

FOR FURTHER INFORMATION CONTACT: Kenneth R. Payne, Chief, Marketing 
Programs Branch, (202) 720-1115.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The Office of Management and Budget (OMB) has waived the review 
process required by Executive Order 12866 for this action.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have a retroactive effect. 
The Act states that the statute is intended to occupy the field of 
promotion and consumer education involving pork and pork products and 
of obtaining funds thereof from pork producers and that the regulation 
of such activity (other than a regulation or requirement relating to a 
matter of public health or the provision of State or local funds for 
such activity) that is in addition to or different from the Act may not 
be imposed by a State.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 1625 of the Act, a 
person subject to an order may file a petition with the Secretary 
stating that such order, a provision of such order or an obligation 
imposed in connection with such order is not in accordance with the 
law; and requesting a modification of the order or an exemption from 
the order. Such person is afforded the opportunity for a hearing on the 
petition. After the hearing, the Secretary would rule on the petition. 
The Act provides that the district court of the United States in the 
district in which a person resides or does business has jurisdiction to 
review the Secretary's determination, if a complaint is filed not later 
than 20 days after the date such person receives notice of such 
determination.

Regulatory Flexibility Act

    This action also was reviewed under the Regulatory Flexibility Act 
(RFA) (5 United States Code (U.S.C.) 601 et seq.). The effect of the 
Order upon small entities initially was discussed in the September 5, 
1986, issue of the Federal Register (51 FR 31898). It was determined at 
that time that the Order would not have a significant effect upon a 
substantial number of small entities. Many of the estimated 500 
importers may be classified as small entities under the Small Business 
Administration definition (13 CFR 121.201).
    This final rule will decrease the amount of assessments on imported 
pork and pork products subject to assessment by five-hundredths to 
seven-hundredths of a cent per pound, or as expressed in cents per 
kilogram, eleven-hundredths to fifteen-hundredths of a cent per 
kilogram. This decrease is consistent with the decrease in the annual 
average price of domestic barrows and gilts for calendar year 2002. The 
average annual market price decreased from $45.87 in 2001 to $37.09 in 
2002, a decrease of about 20 percent. Adjusting the assessments on 
imported pork and pork products will result in an estimated decrease in 
assessments of approximately $562,000 over a 12-month period. 
Assessments collected on imported hogs, pork, and pork products for 
2002 were $4,250,578. Accordingly, the Administrator of AMS has 
determined that this action will not have a significant economic impact 
on a substantial number of small entities.
    The Act (7 U.S.C. 4801-4819) approved December 23, 1985, authorized 
the establishment of a national pork promotion, research, and consumer 
information program. The program was funded by an initial assessment 
rate of 0.25 percent of the market value of all porcine animals 
marketed in the United States and on imported porcine animals with an 
equivalent assessment on pork and pork products. However, that rate was 
increased to 0.35 percent in 1991 (56 FR 51635), to 0.45 percent 
effective September 3, 1995 (60 FR 29963), and then decreased to 0.40 
percent effective September 30, 2002 (67 FR 58320). The final Order 
establishing a pork promotion, research, and consumer information 
program was published in the September 5, 1986, issue of the Federal 
Register (51 FR 31898; as corrected, at 51 FR 36383 and amended at 53 
FR 1909, 53 FR 30243, 56 FR 4, 56 FR 51635, 60 FR 29963, 61 FR 29002, 
62 FR 26205, 63 FR 45936, 64 FR 44643, 66 FR 67071, and 67 FR 58320) 
and assessments began on November 1, 1986.
    The Order requires importers of porcine animals to pay U.S. Customs 
Service (USCS), upon importation, the assessment of 0.40 percent of the 
animal's declared value and importers of pork and pork products to pay 
USCS, upon importation, the assessment of 0.40 percent of the market 
value of the live porcine animals from which such pork and pork 
products were produced. This final rule will decrease the assessments 
on all imported pork and pork products subject to assessment as 
published in the Federal Register as a final rule September 16, 2002, 
and effective on September 30, 2002 (67 FR 58320). This decrease is 
consistent with the decrease in the annual average price of domestic 
barrows and gilts for calendar year 2002 as calculated by the 
Department of Agriculture's (Department), AMS, Livestock and Grain 
Market News (LGMN) Branch. This decrease in assessments will make the 
equivalent market value of the live porcine animal from which the 
imported pork and pork products were derived reflect the recent 
decrease in the market value of domestic porcine

[[Page 9925]]

animals, thereby promoting comparability between importer and domestic 
assessments. This final rule will not change the current assessment 
rate of 0.40 percent of the market value.
    The methodology for determining the per pound amounts for imported 
pork and pork products was described in the Supplementary Information 
accompanying the Order and published in the September 5, 1986, Federal 
Register at 51 FR 31901. The weight of imported pork and pork products 
is converted to a carcass weight equivalent by utilizing conversion 
factors that are published in the Department's Agricultural Handbook 
No. 697 ``Conversion Factors and Weights and Measures.'' These 
conversion factors take into account the removal of bone, weight lost 
in cooking or other processing, and the nonpork components of pork 
products. Secondly, the carcass weight equivalent is converted to a 
live animal equivalent weight by dividing the carcass weight equivalent 
by 74 percent, which is the average dressing percentage of porcine 
animals in the United States as recognized by the industry. Thirdly, 
the equivalent value of the live porcine animals is determined by 
multiplying the live animal equivalent weight by an annual average 
market price for barrows and gilts as calculated by LGMN Branch. 
Finally, the equivalent value is multiplied by the applicable 
assessment rate of 0.40 percent due on imported pork and pork products. 
The end result is expressed in an amount per pound for each type of 
pork or pork product. To determine the amount per kilogram for pork and 
pork products subject to assessment under the Act and Order, the cent 
per pound assessments are multiplied by a metric conversion factor 
2.2046 and carried to the sixth decimal.
    Since 2001, there has been a change in the way LGMN Branch reports 
hog prices. Due to the implementation of the Livestock Mandatory Price 
Reporting program, LGMN no longer report hogs on a live basis because 
most of the industry buys hogs on a carcass basis. Therefore, the 
annual average market price for barrows and gilts is now derived from 
the National Daily Direct Hog Price Report (Slaughtered). To convert 
this figure to a live basis it must be multiplied by 74 percent, the 
average dressing percentage of porcine animals.
    The formula in the preamble for the Order at 51 FR 31901 
contemplated that it would be necessary to recalculate the equivalent 
live animal value of imported pork and pork products to reflect changes 
in the rate of assessment or changes in the annual average price of 
domestic barrows and gilts to maintain equity of assessments between 
domestic and porcine animals and imported pork and pork products.
    The average annual market price decreased from $45.87 per 
hundredweight in 2001 to $37.09 per hundredweight in 2002, a decrease 
of about 20 percent. This decrease will result in a corresponding 
decrease in assessments for all HTS numbers listed in the table in 
Sec.  1230.110(b), 67 FR 58320; September 16, 2002, of an amount equal 
to five-hundredths to seven-hundredths of a cent per pound, or as 
expressed in cents per kilogram, eleven-hundredths to fifteen-
hundredths of a cent per kilogram. Based on the most recent available 
Department of Commerce, Bureau of Census, data on the volume of 
imported pork and pork products imported during 2002, the decrease in 
assessment amounts will result in an estimated $562,000 decrease in 
assessments over a 12-month period. The assessment rate for imported 
live hogs is not affected by the change in the cents per pound 
assessment rate for imported pork and pork products.
    In addition, this rule deletes two live porcine animal Harmonized 
Tariff Schedule (HTS) numbers--0103.91.0000 and 0103.92.0000--and adds 
five new live porcine animal HTS numbers 0103.91.0010, 0103.91.0020, 
0103.91.0030, 0103.92.0010, and 0103.92.0090--to the table in Sec.  
1230.110(a) to reflect current USCS HTS numbers used for live porcine 
animals.
    On December 17, 2003, AMS published in the Federal Register (68 FR 
70201) a proposed rule which would decrease the per pound assessment on 
imported pork and pork products consistent with the decrease in the 
2002 average price of domestic barrows and gilts to provide 
comparability between imported and domestic assessments. The proposal 
was published with a request for comments by January 16, 2004. No 
comments were received.

List of Subjects in 7 CFR Part 1230

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreement, Meat and meat products, Pork and pork 
products.

0
For the reasons set forth in the preamble, 7 CFR part 1230 is amended 
as follows:

PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION

0
1. The authority citation for 7 CFR part 1230 continues to read as 
follows:

    Authority: 7 U.S.C. 4801-4819.

Subpart B--[Amended]

0
2. Section 1230.110 is revised to read as follows:


Sec.  1230.110  Assessments on imported pork and pork products.

    (a) The following Harmonized Tariff Schedule (HTS) categories of 
imported live porcine animals are subject to assessment at the rate 
specified.

------------------------------------------------------------------------
    Live porcine animals       Article description       Assessment
------------------------------------------------------------------------
0103.10.0000................  Purebred breeding     0.40 percent Customs
                               animals.              Entered Value.
0103.91.00..................  Other: Weighing less
                               than 50 kg each.
0103.91.0010................  Weighing less than 7  0.40 percent Customs
                               kg each.              Entered Value.
0103.91.0020................  Weighing 7 kg or      0.40 percent Customs
                               more but less than    Entered Value.
                               23 kg each.
0103.91.0030................  Weighing 23 kg or     0.40 percent Customs
                               more but less than    Entered Value.
                               50 kg each.
0103.92.00..................  Weighing 50 kg or
                               more each.
0103.92.0010................  Imported for          0.40 percent Customs
                               immediate slaughter.  Entered Value.
0103.92.0090................  Other...............  0.40 percent Customs
                                                     Entered Value.
------------------------------------------------------------------------

    (b) The following HTS categories of imported pork and pork products 
are subject to assessment at the rates specified.

[[Page 9926]]



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                                                                                                 Assessment
        Pork and pork products                          Article description                ---------------------
                                                                                             Cents/lb   Cents/kg
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0203..................................  Meat of swine, fresh, chilled, or frozen: Fresh or
                                         chilled:
0203.11.0000..........................  Carcasses and half-carcasses......................        .20    .440920
0203.12.1010..........................  Processed hams and cuts thereof, with bone in.....        .20    .440920
0203.12.1020..........................  Processed shoulders and cuts thereof, with bone in        .20    .440920
0203.12.9010..........................  Other hams and cuts thereof, with bone in.........        .20    .440920
0203.12.9020..........................  Other shoulders and cuts thereof, with bone in....        .20    .440920
0203.19.2010..........................  Processed spare ribs..............................        .23    .507058
0203.19.2090..........................  Processed other...................................        .23    .507058
0203.19.4010..........................  Bellies...........................................        .20    .440920
0203.19.4090..........................  Other.............................................        .20    .440920
0203.21.0000..........................  Frozen carcasses and half-carcasses...............        .20    .440920
0203.22.1000..........................  Frozen-processed hams, shoulders, and cuts                .20    .440920
                                         thereof, with bone in.
0203.22.9000..........................  Frozen-other hams, shoulders, and cuts thereof,           .20    .440920
                                         with bone in.
0203.29.2000..........................  Frozen processed other............................        .23    .507058
0203.29.4000..........................  Frozen other: Other...............................        .20    .440920
0206..................................  Edible offal of bovine animals, swine, sheep,
                                         goats, horses, asses, mules or hinnies, fresh,
                                         chilled, or frozen:.
0206.30.0000..........................  Of swine, fresh or chilled........................        .20    .440920
0206.41.0000..........................  Of swine, frozen: Livers..........................        .20    .440920
0206.49.0000..........................  Of swine, frozen: Other...........................        .20    .440920
0210..................................  Meat and edible meat offal, salted, in brine,
                                         dried or smoked; edible flours and meals of meat
                                         or meat offal:.
0210.11.0010..........................  Meat of swine: Hams and cuts thereof, with bone in        .20    .440920
0210.11.0020..........................  Meat of swine: Shoulders and cuts thereof, with           .20    .440920
                                         bone in.
0210.12.0020..........................  Meat of swine: Bellies (streaky) and cuts thereof,        .20    .440920
                                         Bacon.
0210.12.0040..........................  Meat of swine: Bellies (streaky) and cuts thereof,        .20    .440920
                                         Other.
0210.19.0010..........................  Meat of swine: Canadian style bacon...............        .23    .507058
0210.19.0090..........................  Meat of Swine: Other..............................        .23    .507058
1601..................................  Sausages and similar products, of meat, meat offal
                                         or blood; food preparations based on these
                                         products:
1601.00.2010..........................  Pork canned.......................................        .28    .617288
1601.00.2090..........................  Pork other........................................        .28    .617288
1602..................................  Other prepared or preserved meat, meat offal or
                                         blood.
1602.41.2020..........................  Of swine: Boned and cooked and packed in airtight         .30    .661380
                                         containers holding less than 1 kg.
1602.41.2040..........................  Of swine: Other boned and cooked and packed in            .30    .661380
                                         airtight containers.
1602.41.9000..........................  Of swine: Other...................................        .20    .440920
1602.42.2020..........................  Of swine: Shoulders and cuts thereof: Boned and           .30    .661380
                                         cooked and packed in airtight containers holding
                                         less than 1 kg.
1602.42.2040..........................  Of swine: Shoulders and cuts thereof: Other boned         .30    .661380
                                         and cooked and packed in airtight containers.
1602.42.4000..........................  Of swine: Other shoulders and cuts thereof........        .20    .440920
1602.49.2000..........................  Of swine: Other, including mixtures: Not                  .28    .617288
                                         containing cereals or vegetables: Boned and
                                         cooked and packed in air-tight containers.
1602.49.4000..........................  Of swine: Other, including mixtures: Not                  .23    .507058
                                         containing cereals or vegetables: Other.
1602.49.9000..........................  Of swine: Other, including mixtures: Other........        .23    .507058
----------------------------------------------------------------------------------------------------------------


    Dated: February 27, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-4726 Filed 3-2-04; 8:45 am]

BILLING CODE 3410-02-P