[Federal Register: December 17, 2003 (Volume 68, Number 242)]
[Proposed Rules]               
[Page 70201-70204]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17de03-23]                         

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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: Proposed 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 proposed 
rule would 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 proposed action would 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.

DATES: Comments must be received by January 16, 2004.

ADDRESSES: Send comments to Kenneth R. Payne, Chief; Marketing Programs 
Branch, Room 2638-S; Livestock and Seed Program; Agricultural Marketing 
Service (AMS), USDA; STOP 0251; 1400 Independence Avenue, SW., 
Washington, DC 20250-0251. Comments may also be submitted 
electonrically to PorkComments@usda.gov or by fax at (202) 720-1125. 
All comments should reference the document number (LS-03-08), the date, 
and the page number of this issue of the Federal Register. Comments 
will be available for public inspection via the Internet at http://www.ams.usda.gov/lsg/mpb/rp-pork.htm
 or during regular business hours, 

8 a.m. to 4:30 p.m. eastern time, Monday through Friday, at the above 
address.

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 proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposal 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

[[Page 70202]]

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 proposed rule would 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 would 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 would 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 proposed rule would 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 would 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 
animals, thereby promoting comparability between importer and domestic 
assessments. This proposed rule would 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 would 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 proposed 
decrease in assessment amounts would 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

[[Page 70203]]

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.
    This proposed rule provides for a 30-day comment period. This 
comment period is deemed appropriate because the proposed rule simply 
provides for a decrease in the per pound assessment levels on imported 
pork and pork products to reflect changes in live hog prices which 
occurred during 2002. These live hog prices form the basis for the 
assessments. This adjustment, if adopted, should be made effective as 
soon as possible to bring the equivalent market value of live animals 
from which such imported pork and pork products were derived in line 
with the market values of domestic porcine animals.

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.

    For the reasons set forth in the preamble, it is proposed that 7 
CFR part 1230 be amended as follows:

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

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

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

Subpart B--[Amended]

    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 each
                               more but less than    Customs Entered
                               50 kg each.           Value
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.

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                                                                                               Assessment
            Pork and pork products                        Article description          -------------------------
                                                                                          cents/lb     cents/kg
----------------------------------------------------------------------------------------------------------------
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           .20      .440920
                                                 bone in.
0203.12.1020..................................  Processed shoulders and cuts thereof,           .20      .440920
                                                 with bone in.
0203.12.9010..................................  Other hams and cuts thereof, with bone          .20      .440920
                                                 in.
0203.12.9020..................................  Other shoulders and cuts thereof, with          .20      .440920
                                                 bone in.
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           .20      .440920
                                                 cuts thereof, with bone in.
0203.22.9000..................................  Frozen-other hams, shoulders, and cuts          .20      .440920
                                                 thereof, 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,           .20      .440920
                                                 with bone in.
0210.11.0020..................................  Meat of swine: Shoulders and cuts               .20      .440920
                                                 thereof, with bone in.
0210.12.0020..................................  Meat of swine: Bellies (streaky) and            .20      .440920
                                                 cuts thereof, Bacon.
0210.12.0040..................................  Meat of swine: Bellies (streaky) and            .20      .440920
                                                 cuts thereof, Other.
0210.19.0010..................................  Meat of swine: Canadian style bacon...          .23      .507058
0210.19.0090..................................  Meat of Swine: Other..................          .23      .507058

[[Page 70204]]


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           .30      .661380
                                                 in airtight containers holding less
                                                 than 1 kg.
1602.41.2040..................................  Of swine: Other boned and cooked and            .30      .661380
                                                 packed in airtight containers.
1602.41.9000..................................  Of swine: Other.......................          .20      .440920
1602.42.2020..................................  Of swine: Shoulders and cuts thereof:           .30      .661380
                                                 Boned and cooked and packed in
                                                 airtight containers holding less than
                                                 1 kg.
1602.42.2040..................................  Of swine: Shoulders and cuts thereof:           .30      .661380
                                                 Other boned and cooked and packed in
                                                 airtight containers.
1602.42.4000..................................  Of swine: Other shoulders and cuts              .20      .440920
                                                 thereof.
1602.49.2000..................................  Of swine: Other, including mixtures:            .28      .617288
                                                 Not containing cereals or vegetables:
                                                 Boned and cooked and packed in air-
                                                 tight containers.
1602.49.4000..................................  Of swine: Other, including mixtures:            .23      .507058
                                                 Not containing cereals or vegetables:
                                                 Other.
1602.49.9000..................................  Of swine: Other, including mixtures:            .23      .507058
                                                 Other.
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    Dated: December 9, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-31074 Filed 12-16-03; 8:45 am]

BILLING CODE 3410-02-P