[Federal Register Volume 81, Number 125 (Wednesday, June 29, 2016)]
[Rules and Regulations]
[Pages 42225-42235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14812]
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DEPARTMENT OF AGRICULTURE
Food Safety and Inspection Service
9 CFR Parts 312, 322, 350, 362, 381, 590, and 592
[Docket No. FSIS-2009-0026]
RIN 0583-AD41
Electronic Export Application and Certification Charge;
Flexibility in the Requirements for Export Inspection Marks, Devices,
and Certificates; Egg Products Export Certification
AGENCY: Food Safety and Inspection Service, USDA.
ACTION: Final rule.
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SUMMARY: The Food Safety and Inspection Service (FSIS) is amending the
meat and poultry inspection regulations to provide for an electronic
export application and certification system. The electronic export
application and certification system will be a component of the
Agency's Public Health Information System (PHIS). The PHIS Export
Component will be available as an alternative to the paper-based export
application and certification process. FSIS will charge an application
fee to exporters that use the PHIS Export Component. FSIS is
establishing a formula for calculating the fee. On an annual basis, the
Agency will use the formula to update the fee and publish the new fee
in the Federal Register. The updated fee will apply at the start of
each calendar year. FSIS is also amending the meat and poultry export
regulations to provide flexibility in the requirements for official
export inspection marks, devices, and certificates. In addition, FSIS
is amending the egg product export regulations to parallel the meat and
poultry product export regulations.
DATES: Effective Date: August 29, 2016. Applicability Date: The
regulations that provide for an electronic export application and
certification system for meat, poultry, and egg products; an electronic
application fee; and the use of a 7-digit export mark or unique
identifier will be applicable on June 29, 2017. These regulations
include 9 CFR 312.8; 381.104; 322.2(a); 381.106(a); 590.407(a);
590.407(c) (unique identifier and 7-digit export mark provisions only);
350.7(e) through (g) and 362.5(e) through (g); 592.500(a); and
592.500(d) through (f).
FOR FURTHER INFORMATION CONTACT: Daniel Engeljohn, Assistant
Administrator, Office of Policy and Program Development, U.S.
Department of Agriculture, 1400 Independence Avenue SW., Room 2147,
Washington, DC 20250-3700, (202) 205-0495.
SUPPLEMENTARY INFORMATION:
Executive Summary
On January 23, 2012, FSIS proposed to amend its regulations to
provide for the PHIS Export Component, an electronic export application
and certification system that would be available as an alternative to
the paper-based application and certification process (77 FR 3159). The
Agency also proposed amendments to provide exporters with flexibility
in the official marking of exported products and to delete certain
prescriptive practices from the regulations, such as the obsolete
``upon request'' poultry export certification provision (9 CFR
381.105(a)) and requirements for ``triplicate'' and ``duplicate'' forms
(9 CFR 322.2 and 381.105) to allow for ``copies'' of the export
certificates. In addition, FSIS proposed to organize and make parallel,
to the extent possible, the regulatory language for the export
application and certification of meat and poultry products and to amend
the egg products export regulations to add export application and
certification requirements.
Because the PHIS Export Component will provide exporters with new
service options, such as the ability to electronically submit, track,
and manage their export applications, the Agency proposed to charge
exporters a fee for the service. FSIS proposed a formula for
calculating the fee based on recovering the Agency's costs of
maintaining and operating the PHIS Export Component.
After review and consideration of all the comments submitted, FSIS
is finalizing the proposed amendments, with modifications:
One component of the fee formula, direct inspection cost,
has been deleted. Other cost components of the formula, e.g., technical
support, export library maintenance, on-going operations and
maintenance cost, and the number of export applications, have been
updated. The export application fee has been recalculated based on the
updated costs
[[Page 42226]]
and number of export applications. As noted above, the fee will take
effect beginning on the applicability date of June 29, 2017.
The regulatory requirements for filing a copy of the
export certificate with U.S. Customs and Border Protection (CBP) will
be deleted from the regulatory text (9 CFR 322.2(e)). However, the
Federal Meat Inspection Act's (FMIA) statutory requirement and FSIS's
regulatory requirement that the product's owner (e.g., exporter) or
shipper obtain an export certificate from FSIS before the meat product
departs from a U.S. port (21 U.S.C. 617; 9 CFR 322.4) remain in effect.
The regulatory text in 9 CFR 322.1(a) and 381.105(a) for
marking the outside containers of exported products is modified to
include stamping the pallet within the consignment, or closed means of
conveyance transporting the consignment (e.g. truck, rail car, or ocean
container).
Also, to make the regulations more clear, FSIS is amending
the export certification regulations by changing the term ``in lieu of
certificates'' to ``replacement certificates'' (9 CFR 322.2(b), 9 CFR
381.106(b), 590.407(b)).
Beginning on the applicability date of June 29, 2017, FSIS will
charge exporters that choose to utilize the PHIS Export Component a
revised fee of $4.03 per application submitted. Automating the export
application and certification process will provide a seamless,
integrated, and streamlined approach to processing applications and
certificates. It will likely reduce the exporter and inspection
personnel workload and paperwork burden by reducing the physical
handling and processing of applications and certificates. Adding export
application and certification requirements to the egg products
regulations will parallel the meat and poultry regulations.
Total direct cost to the exporters is estimated at $2.3 million,
assuming that the number of applications will remain at about 576,000
per year, based on recent application data. The indirect costs, which
are indeterminate, will be the Internet service and the acquisition or
upgrading of a current computer system to one that would be compatible
with the PHIS. Under the final rule, exporters may continue to submit
paper-based export applications to the Agency so as to not incur the
additional fee required by this rule.
Background
On January 23, 2012, FSIS published the proposed rule, ``Electronic
Export Application and Certification Charge; Flexibility in the
Requirement for Export Inspection Marks, Devices, and Certificates; Egg
Products Export Certification'' (77 FR 3159). In it, the Agency
proposed to amend the meat, poultry, and egg products regulations to
provide for the PHIS Export Component, an electronic alternative to the
paper-based export application and certification process.
The Federal Meat Inspection Act (FMIA) (21 U.S.C. 601-695) and the
Poultry Products Inspection Act (PPIA) (21 U.S.C. 451-470) provide for
the export and certification of meat and poultry products. The FSIS
meat and poultry export regulations set forth the requirements for the
certification and export of federally inspected and passed meat and
poultry products to foreign countries (9 CFR 312.8, 322.1 through 322.5
and 381.104 through 381.111).
The Egg Products Inspection Act (EPIA) (21 U.S.C. 1031-1056) does
not set forth specific provisions for the export of egg products.
FSIS's egg products inspection regulations provide that, upon request,
an inspector may issue an egg product export certificate of
wholesomeness. Exporters can present the certificate to foreign
countries as certification that egg products were inspected and passed
and are wholesome and fit for human consumption (9 CFR 590.402).
The Agricultural Marketing Act (AMA) provides the Secretary of
Agriculture with the authority to collect fees ``as will be reasonable
and as nearly as may be to cover the cost of the service rendered, to
the end that agricultural products may be marketed to the best
advantage, that trading may be facilitated, and that consumers may be
able to obtain the quality product which they desire'' (7 U.S.C
1622(h)). Under the authority of the AMA, the meat and poultry
regulations provide that FSIS may make certifications regarding
exported meat and poultry products meeting conditions or standards that
are not imposed, or that are in addition to those imposed, by the meat
and poultry regulations, the FMIA, or the PPIA (9 CFR 350.3(b) and
362.2(b)). FSIS collects fees and charges from establishments and
facilities that request certification service in addition to the basic
export certification of wholesomeness (9 CFR 350.7 and 362.5).
The Public Health Information System (PHIS)
FSIS is developing and, on the applicability date of June 29, 2017,
will implement the PHIS Export Component that will integrate and
automate the Agency's paper-based export application and certification
process into one comprehensive and automated data-driven inspection
system. Through the PHIS Export Component, exporters will be able to
access their online account to electronically submit, track, and manage
applications for export certificates. The PHIS Export Component will
allow establishment management to apply for approval of establishments
for export when required by the foreign country; create, revise, and
submit Product Lists; cancel pending applications and certificates;
request replacement (formerly ``in lieu of'') certificates; and return
of exported products.
The PHIS Export Component will include electronic data elements for
the following export-related forms: the Application for Export
Certificate (which includes the option for an ``original'' or
``replacement'' application); the Product List, which will be used by
PHIS to capture the description of a product and other product-specific
information; and the Application for the Return of Exported Products to
the United States (used to notify FSIS when product is exported and
then returned to the U.S. and to arrange for the product's entry and
reinspection by FSIS); and the Establishment Application for Export
(used by FSIS to ensure specific establishment requirements defined by
certain countries are met); once approved, the eligible establishment
will be listed by country on the FSIS Web site (http://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/exporting-products/eligible-us-establishments-by-country or http://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/exporting-products/export-library-requirements-by-country) and included
in PHIS when the Export Component is implemented.
After the applicability date of June 29, 2017, exporters can
continue to submit the paper applications for export certification, but
those who choose to do so will need to email, fax, or mail the
completed application, and any additional information required by the
foreign country, to FSIS for entry into PHIS at:
Email: [email protected].
Mail: U.S. Department of Agriculture, Food Safety and Inspection
Service, FMD, Financial Services Center, P.O. Box 9205, Des Moines, IA
50306-9948.
Before the rule's applicability date of June 29, 2017, FSIS will
also announce, in the Constituent Update, a dedicated fax number for
paper application submissions.
FSIS intends to enter data from complete paper export certificate
applications into PHIS typically within
[[Page 42227]]
3-5 business days after receipt of an application by FSIS. However, the
entry may take longer in some cases. By contrast, export certificate
applications submitted electronically will be instantly and directly
submitted into PHIS for review. Therefore, processing the paper-based
export certificate applications will be slower than the applications
that are submitted electronically. FSIS will also enter Product List
data for applicants that choose to use paper.
After FSIS enters the data from the paper export certificate
application into PHIS, the application data will follow the same
approval process in PHIS as application data submitted by an applicant
through PHIS with Level 2 eAuthentication. After FSIS approves an
Application for Export Certificate, an FSIS inspector will issue a
signed export certificate to the exporter. FSIS will continue to
process and charge for after-hours (overtime or holiday) applications
as a reimbursable service (9 CFR 307.5 and 307.6; 381.38 and 381.39;
590.126 through 590.130), as well as requests for certification that
are in addition to the basic export certification (9 CFR 350.3(b),
350.7, 362.2(b), and 362.5).
The PHIS Export Component will initially have the ability to
produce paper certificates that can be signed by FSIS with either an
ink signature, as is done currently, or with a secure signature image
derived from an official FSIS Identification card. The type of
signature will be determined by the foreign government's requirements.
FSIS will print paper certificates, generated by PHIS and issue the
signed paper certificates to the exporter.
Foreign governments will also have the capability to view all
export certificates for product intended for their country issued by
FSIS in PHIS, as a digital image (portable document format, (PDF)),
through an FSIS-controlled log-in feature (Foreign Country Log-in).
Foreign governments may access the Foreign Country Log-in using Level 2
eAuthentication. Prior to implementation of the PHIS Export Component,
FSIS will notify foreign governments when it is time to register for
Level 2 eAuthentication. To learn more about Level 2 eAuthentication
and how to register for an account, please visit https://www.eauth.usda.gov/MainPages/eauthWhatIsAccount.aspx.
In the future, FSIS also intends to support electronic export
certification in PHIS. Electronic export certification is the
government-to-government transmission of certification data and is the
electronic equivalent of a paper certificate. When developed and
implemented, electronic export certification will allow FSIS to
transfer certification data directly to the foreign government's
competent authority. Electronic certification will allow the foreign
government's competent authority to view and authenticate the export
certification data. FSIS will notify the public--including industry,
importing countries, and other interested stakeholders--regarding the
future development and implementation of electronic export
certification, through a U.S. Federal Register Notice, World Trade
Organization (WTO) notification, FSIS Constituent Update, or other
appropriate means.
The PHIS Export Component will maintain a record of each export
certificate issued, whether the certificate is paper-based, digital
image, or in the future, electronic. FSIS considers any data and the
electronic records (applications and certifications) submitted and
processed through the PHIS to be equivalent to paper records. Export
applications and certifications transmitted electronically are
official.
To access and use the PHIS Export Component, exporters will need to
register for a USDA eAuthentication account with Level 2 access. An
eAuthentication account enables individuals within and outside of the
USDA to obtain user-identification accounts to access a wide range of
USDA applications through the Internet. The Level 2 access will provide
to users the ability to conduct official electronic business
transactions. To register for a Level 2 eAuthentication account, the
user will need to have access to the Internet and a valid email
address.
The Agency plans to provide exporters with more specific, detailed
information on how to access PHIS to submit and manage export
certificate applications, including guidance to exporters for accessing
and navigating the PHIS Export Component. Any information concerning
the implementation of the PHIS Export Component will be posted on the
Agency's Web site at http://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/exporting-products.
PHIS Export Component Implementation
To provide for an orderly transition to the PHIS Export Component,
FSIS considered several implementation options, including a phased-in
implementation approach, which would benefit FSIS and industry by
allowing time and flexibility to identify and address any PHIS export
issues that may arise. The Agency also considered initially
implementing the Export Component with countries that import the
highest volume of FSIS-regulated product, or with neighboring countries
such as Canada and Mexico. In addition, the Agency considered whether
or not to accommodate the transfer of multiple export applications
batch files sent from exporters to the PHIS Export Component.
On April 2, 2015, to solicit public comment and input on
implementation issues, the Agency published ``Issues on Implementation
of Export Module,'' on regulations.gov (http://www.regulations.gov/#!searchResults;rpp=25;po=0;s=FSIS-2015-0018-0004;fp=true;ns=true). The
document outlined the Agency's thinking on implementation options and
posed specific implementation questions for industry and consumer
input. The comment period closed on May 5, 2015.
Also on April 2, 2015, FSIS held a conference call with members of
consumer advocacy groups and industry representatives to request
feedback on the implementation of the PHIS Export Component. During the
call, the Agency announced that it had published PHIS Export Component
implementation issues and questions on regulations.gov for public
comment. The Agency published the transcript of the conference call on
its Web site at: http://www.fsis.usda.gov/wps/wcm/connect/abc21785-3a1a-43bc-b789-81187a0e67bb/PHIS-export-conference.pdf?MOD=AJPERES.
In addition, on April 3, 2015, FSIS announced, in a Constituent
Update, a request for feedback on the implementation of the PHIS Export
Component (http://www.fsis.usda.gov/wps/wcm/connect/805c2534-dfec-414b-9342-9a8effe2c5b8/ConstiUpdate040315.pdf?MOD=AJPERES&CONVERT_TO=url&CACHEID=805c2534-dfec-414b-9342-9a8effe2c5b8).
In response to the implementation issues and questions, commenters
generally supported a phased-in approach, starting with one country,
and expanding to additional countries only after potential initial
implementation issues have been resolved. Commenters did not recommend
specific countries, although some suggested beginning with low-volume
countries that maintain relatively simple export certification
requirements. Commenters also supported including batching capabilities
which will allow applicants to bundle multiple applications into a
single file, and noted specifically that, as the PHIS Export Component
is implemented, companies will have to
[[Page 42228]]
operate parallel systems for both batch certificates and individual
certificates. In addition, industry association members affirmed that
they could accommodate both a limited initial implementation of the
PHIS Export Component and traditional certification processes for
countries not yet included in PHIS, depending on acceptance by foreign
governments.
Based on the comments received, FSIS is developing a comprehensive
phased-in implementation plan of the PHIS Export Component. Initially,
beginning on the applicability date of June 29, 2017, the Agency will
implement the PHIS Export Component with one foreign country or limited
number of foreign countries, and then gradually expand implementation
to additional countries. In addition, the PHIS Export Component will
include batch file capability, which will be aligned with the rollout
of countries in the phased-in implementation. To maintain system
functionality, FSIS reserves the right to place limits on batching as
needed or required by PHIS, and will process applications in the order
that they are received. In preparing for phased-in implementation, FSIS
is evaluating criteria, such as the foreign country's product volume
and product diversity, geographic proximity to the United States, and
complexity of certification requirements. FSIS will communicate with
foreign countries and industry regarding preparations for the phased-in
implementation plan, and will seek additional public input as needed.
The rule's electronic application and fee provisions will not be
applicable until June 29, 2017. FSIS will provide additional
information through Federal Register notices on implementation prior to
the applicability date, including specific information on which
countries will initially receive export certificates through the new
Export Component.
Proposed and Final Rule Amendments
Export Applications and Certificates
As discussed in the proposed rule (77 FR 3160), the meat and
poultry products inspection regulations provide a paper-based export
application and certification process (9 CFR 312.8, 322.2, 381.105, and
381.106). The meat regulations provide that, upon application of the
exporter, FSIS inspectors are authorized to issue export certificates
(9 CFR 322.2(a)). The poultry products regulations provide that, upon
the exporter's request or application, FSIS inspectors are authorized
to issue export certificates (9 CFR 381.105(a)). The Agency proposed to
amend the regulations to provide that applications for export
certification may be either paper-based or electronic and to delete the
``upon request'' certificate provision in the poultry products
regulations, because the ``upon request'' provision is obsolete and
does not reflect current export certification practices.
FSIS also proposed to delete the export certificate form
requirements in 9 CFR 312.8(b) and 381.106, because these regulations
contain specific certificate requirements and instructions for Agency
inspection personnel, e.g., signature by a program employee and bearing
a letterhead and the official seal of the U.S. Department of
Agriculture. The Agency provides instructions to inspection program
personnel for export application approval and issuance of export
certificate instructions in FSIS Directive 9000.1, Revision 1 http://www.fsis.usda.gov/wps/portal/fsis/topics/regulations/directives/9000-series.
In addition, FSIS proposed to delete the references in 9 CFR 322.2
and 381.105 to the issuance of ``triplicate'' and ``duplicate''
certificates to allow for ``copies'' of the export certificate to be
distributed to the required parties and to accompany the product. The
Agency also proposed to delete the provisions in 9 CFR 322.2(e) for
filing a copy of the export certificate with the U.S. Customs and
Border Protection (CBP) within four (4) business days of the clearance
of the vessel at the time of filing the complete manifest.
FSIS also proposed to amend the meat and poultry export regulations
to organize and make parallel, to the extent possible, the regulatory
language for meat and poultry products. This rule finalizes all of the
proposed amendments.
Export Inspection Marks and Devices
As discussed in the proposed rule (77 FR 3161), after the export
application is approved, inspection program personnel provide the
export stamp and authorize the establishment to mark products destined
for export. As required in 9 CFR 322.1(a) and 381.105(a), each shipping
container is marked with the official export stamp bearing the serial
number on the export certificate (of note, beginning on the
applicability date of June 29, 2017, FSIS is changing the number of
digits in the serial number that appears on both the export stamp and
the corresponding export certificate from six to seven). Both 9 CFR
312.8(a) and 381.104 provide for an official device to apply the
official export stamp.
FSIS proposed to amend 9 CFR 312.8(a) and 381.104 to provide an
alternative method of identifying and marking containers of product
destined for export. The proposed flexibility would permit exporters to
mark product containers with a unique identifier that links the
exported product to the export certificate. The Agency proposed the
flexibility because of the technological advancements that have been
made since the export marking and devices regulations were initially
promulgated.
This rule finalizes the proposed amendments, but will not make the
unique identifier provisions applicable until June 29, 2017. In
response to a comment, the Agency is also providing greater flexibility
by permitting stamping of the pallet within the consignment, or closed
means of conveyance transporting the consignment (e.g. truck, rail car,
or ocean container), provided that the stamp or unique identifier links
the consignment to the corresponding export certificate. FSIS intends
``consignment'' to mean the product represented on the export
certificate (9 CFR 322.2(c)), 9 CFR 381.105(c), 9 CFR 590.407(b)), and
that the stamped pallet will be securely enclosed (e.g. shrink-wrapped
or other effective means). The pallet stamp should be a single mark on
the pallet or pallets included within the consignment. Pallet stamping
provisions will be effective on August 29, 2016. Offering these options
for stamping is an outgrowth of FSIS's proposal to give more
flexibility in the export stamp process. While FSIS is offering this
flexibility, exporters will still have to meet any stamping
requirements of the importing foreign country.
Egg Products Export Regulations
As discussed, the EPIA does not set forth specific provisions for
the export of egg products, and the FSIS egg products inspection
regulations do not include requirements for exported egg products. The
egg products inspection regulations provide that, upon request, an
inspector may issue an egg product inspection and grading certificate.
The exporter can present the certificate to foreign countries as
certification that egg products were inspected and passed and are
wholesome and fit for human consumption (9 CFR 590.402).
As discussed in the proposed rule (77 FR 3161), because almost all
foreign countries require export certification for imported egg
products, FSIS proposed to amend the egg products export regulations to
add export application and certification requirements in 9 CFR 590.407.
The proposed section paralleled, to the extent possible, the export
requirements in the meat and poultry regulations that provide for the
[[Page 42229]]
application, certification, and marking of product destined for export.
FSIS also proposed to add 9 CFR 592.20(d), which parallels 9 CFR
350.3(b) and 362.2(b) and provides that export certifications that
products meet conditions or standards that are not imposed, or that are
in addition to those imposed, by the egg products regulations will be
subject to a charge as a reimbursable service. This rule finalizes the
proposed amendments.
Charge for Electronic Export Application and Certification Process
As discussed above and in the proposed rule (77 FR 3161), under the
authority of the AMA, the meat and poultry inspection regulations
provide that when exporters request certification that is in addition
to the basic export certification of wholesomeness required by
regulation, FSIS charges and collects fees from establishments and
facilities that request this service (9 CFR 350.3(b), 350.7, 362.2(b),
and 362.5). Exporters may also request additional certifications to
meet requirements imposed by the importing foreign countries.
The PHIS's Export Component will provide new service options to
exporters enabling them to electronically submit, track, and manage
their export applications. Therefore, to cover the costs of providing
the electronic application and certification service, the Agency
proposed to establish a fee to exporters that utilize the PHIS Export
Component. The fee is for the application for the basic export
certificate. Any additional certifications that are imposed by the
importing foreign country will be charged as a certification service,
as provided in 9 CFR 350.3(b), 362.2(b), and 592.20(d)). These
additional export certifications will be charged at the appropriate
basetime, overtime, or holiday rate, depending on when the
certification service is provided. The basic export certification, if
provided outside of an inspector's normal shift, is also charged at the
appropriate rate (overtime or holiday).
The Agency proposed the following formula for assessing its annual
cost: The labor costs (i.e., direct inspection labor cost for
inspection personnel + technical support provided to users of the
Export Component + export library maintenance) + the Information and
Technology (IT) costs (i.e., on-going operations + maintenance of the
system costs + eAuthentication cost) divided by the number of annual
export applications:
[GRAPHIC] [TIFF OMITTED] TR29JN16.012
The Agency also provided the following calculation and export
application fee based on the 2012 basetime rate, the best estimates for
on-going operations and maintenance, and an estimated number of export
applications it would receive:
[GRAPHIC] [TIFF OMITTED] TR29JN16.013
In response to comments that the export application formula and fee
should not include direct inspection labor costs for inspection
personnel, FSIS deleted this cost from the export application formula
and fee. In addition, the Agency has updated the costs and the
estimated number of export applications included in the formula, and in
response to comments provided more explanation of the costs:
The 2015 PHIS Export Application Fee is based on the following
costs, rates, and best available data:
Technical Support Costs.
The cost of providing technical support, which includes service
desk support, is $125,000.\1\ Service Desk support consists of
activities like resolving user problems with the application services,
identifying web browser compatibility issues, and resolving access
issues to authorized areas of the system.
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\1\ Based on fixed price contract for contractor Service Desk
support.
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Export Library Maintenance.
The cost for funding two full-time employees to provide export
library functions is $302,098.\2\ Export library maintenance supports
the PHIS Export Component and includes the writing, testing, and
maintenance of complex business rules for evaluating the export
application that is submitted into the PHIS export system. The business
rules allow the system to determine product eligibility before the
system accepts the application and transmits it to inspection program
personnel. The business rules also facilitate the type of export
certification required by the foreign government that will be issued
when the application is accepted. This work supports the PHIS Export
Component and is not part of current export library functions. In
addition, there will be continuous updates to the system.
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\2\ Actual costs of 2016 GS-schedule salaries and benefits for
two Export Library FTEs.
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On-going Operations and Maintenance Costs.
The cost of providing on-going operations and maintenance,
including improvements and necessary repairs to keep the system
responsive to users' needs, is $1,894,156.\3\ These costs cover
activities such as modifying the application based on changes in
requirements or user needs, adding functionality based on foreign
regulatory changes, upkeep of the system to ensure a secure operating
environment that protects the data, and costs to operate the system
components. This cost may increase in future years based on GSA
schedule increases in labor rates and other factors.
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\3\ Operations and Maintenance Costs = Application maintenance
costs ($1,451,210/yr) + Non-development-related Export O&M costs
($442,946/yr).
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eAuthentication Costs.
[[Page 42230]]
The cost of providing eAuthentication is currently zero.
eAuthentication is a single sign-on application that allows users to
securely access multiple USDA applications, including the PHIS Export
Component. To access the PHIS Export Component users need to register
for a USDA eAuthentication account. To learn more about eAuthentication
and how to register for an account, visit https://www.eauth.usda.gov.
FSIS may be charged for Level 2 Customer accounts separately in the
future, and these costs may increase in future years. As an example,
the annual future cost could be $56.88 per Level 2 account and would be
factored on the number of export business customers annually.
The estimated number of yearly export applications,
determined using data obtained from FSIS's Office of Field Operations,
is 576,192.\4\
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\4\ FSIS internal survey of Ten District Offices on June 10,
2013.
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The final export application fee formula and fee are below:
[GRAPHIC] [TIFF OMITTED] TR29JN16.014
The fee will be calculated on an annual basis, and the updated fees
will apply at the start of each calendar year. FSIS will publish a
Federal Register notice announcing the fee approximately 30 days prior
to the start of each new calendar year.
Notification of Changes to Replacement Certificate Terminology and
Practice
FSIS is amending the export certification regulations by changing
the term ``in lieu of certificates'' to ``replacement certificates'' (9
CFR 322.2(b), 9 CFR 381.106(b), 9 CFR 590.407(b)). This change is
intended to make FSIS regulations more clear. This change will not
cause problems for the industry or international community because the
term ``replacement certificates'' is generally well understood.
Comments on and Responses to the Proposed Rule
FSIS received 8 comments from domestic trade associations and
domestic exporting establishments.
Comment: Several commenters stated the Federal Meat Inspection Act
(FMIA) and Poultry Products Inspection Act (PPIA) (21 U.S.C. 695 and
468) provide that the cost of inspection rendered, except the cost of
overtime and holiday work, shall be borne by the United States, and
therefore, the export application formula and fee should not include
direct inspection labor costs for inspection personnel.
Response: FSIS agrees that the direct inspection labor costs
included in the proposed export application formula should be removed
from the export application formula. However, as discussed in the
proposed rule (77 FR 3161), under the authority of the Agricultural
Marketing Act (AMA), the meat and poultry inspection regulations
provide that when exporters request certification that is in addition
to the basic export certification (e.g. as required by a foreign
country and documented in the FSIS Export Library), FSIS charges and
collects fees from establishments and facilities that request this
service (9 CFR 350.3(b), 350.7, 362.2(b), and 362.5). Because the PHIS
Export Component provides new service options to exporters for
electronic application and certification, the formula will continue to
include the non-direct inspection based costs of the system for FSIS
personnel (or contracted support as necessary) to operate and maintain
the PHIS Export Component, including technical support for users,
export library maintenance, and information technology costs.
In this final rule, in addition to deleting the direct inspection
costs from the export application formula, the Agency also updated the
costs and the estimated number of export applications included in the
formula. The final formulas and fees are discussed above.
Comment: Comments from trade organizations stated that FSIS needs
to work closely with exporters to ensure that the system is compatible
with industry needs, and that it requires minimal manual input. One
industry comment stated that the system must have the ability to accept
some type of load files from companies that intend to use the system,
and that it must have the ability to interface through Electronic Data
Interchange. These commenters also recommended that FSIS communicate
with U.S. trading partners and exporters to ensure that the Export
Component would be acceptable.
Response: As discussed above, in April 2015, FSIS met with and
solicited comments from stakeholders on the system's ability to accept
batch files. In June 2015, FSIS met with stakeholders to provide an
update on the progress of PHIS Export Component development and will
continue to work with exporters to ensure that industry is aware of the
system's capabilities. The Agency intends to provide the capability for
batch file processing of applications. FSIS will involve industry in
its user acceptance testing for the Export Component.
FSIS notified the World Trade Organization (WTO) of the proposed
rule on January 23, 2012, consistent with our obligations under the WTO
Technical Barriers to Trade Agreement. This notification gave all WTO
Members the chance to review and comment on the proposal at a point
when meaningful changes could still be made. In addition, FSIS is
planning a formal outreach strategy to ensure that foreign
[[Page 42231]]
governments and U.S. exporters have every opportunity to understand the
Export Component.
Comment: One commenter asked whether the paper-based export process
would continue to be available when the PHIS Export Component is
implemented, and whether PHIS will be used to print export
certificates.
Response: Export applicants can submit a paper version of the
application for export process rather than use the PHIS Export
Component. If applicants choose to submit the paper application, FSIS
will enter the data into the PHIS Export Component for processing and
provide the paper export certificate to the applicant when it has been
approved. Exporters who choose to use paper-based applications will
need to email, fax, or mail the completed applications, and any
additional information required by the foreign country, to FSIS for
entry into PHIS at:
Email: [email protected]
Mail: U.S. Department of Agriculture, Food Safety and Inspection
Service, FMD, Financial Services Center, P.O. Box 9205, Des Moines, IA
50306-9948.
FSIS will provide a dedicated fax number as well, and will announce
availability of this number in a Constituent Update before the rule's
effective date.
Export applicants with an eAuthentication account can submit and
process their application electronically (for a fee), and if the
foreign country requires a paper certificate, FSIS will print an
approved certificate and provide it to the applicant.
Comment: One commenter requested clarification on how FSIS will
handle after hours (second shift exports), weekend, and holiday export
certification applications.
Response: FSIS inspectors who are on-duty during those times will
process export applications received through PHIS in a similar manner
to the current process. The inspector will receive the export
application in PHIS, review the application, conduct a re-inspection of
the product according to current procedures, approve the application,
and issue the export certificate. For exporters using paper
applications, FSIS will continue to process and charge for after-hours
(overtime or holiday) applications as a reimbursable service (9 CFR
307.5-6; 381.38-39; 590.126-130).
Comment: Comments from trade organizations stated that FSIS should
not delete the regulatory language in 9 CFR 322.2(e) for filing a copy
of the export certificate with CBP within four (4) business days of the
clearance of the vessel at the time of filing the complete manifest.
These commenters stated that these regulations are necessary so that
establishments and exporters know that they are required to send a copy
of the export certificate to CBP.
Response: FSIS proposed to delete the provisions in 9 CFR 322.2(e)
initially because the filing of the export manifest with CBP within 4
business days is required under CBP regulations (19 CFR 4.75(b)). Upon
further reflection, the FMIA requires the product's owner (e.g., the
exporter) or shipper to obtain an export certificate from FSIS before
the product departs from a U.S. port (21 U.S.C. 617). Vessel clearance
is under CBP's jurisdiction, and because FSIS provides the export
certificate to the exporter prior to clearance with CBP, the intent of
21 U.S.C. 617 is satisfied.
In terms of accounting for export certificates, the PHIS Export
Component will allow FSIS to electronically inventory and track export
certificate information, thus eliminating the cumbersome transfer of
export certificate copies or certificate data across multiple steps in
the supply chain to CBP. Furthermore, no direct transfer from FSIS to
CBP is needed, because the controls in place between the United States
and the importing countries are sufficient to eliminate the burden of
transferring data (or copies of the certificate) between Federal
agencies. Therefore, in this final rule, FSIS is deleting 9 CFR
322.2(e). While this change removes unnecessary export requirements
internal to the United States, exporters are responsible for obtaining
the appropriate export certification before departure.
Comment: An industry comment stated that certain countries require
an original signature on export certificates and questioned how
original signatures would be handled in the PHIS Export Component.
Response: For countries that require an original signature on the
certificate, PHIS will have the capability of printing a paper
certificate that will be signed with an ink signature by an FSIS
official.
Comment: A trade organization stated that the Agency needs to
provide greater flexibility in export stamping. According to the
commenter, requiring facilities to place export stamps on every single
case of product is costly and has little practical value. The commenter
asked that the Agency provide an option for establishments to use FSIS-
issued export stamps on whole pallets instead of stamping every
container on a pallet. One comment also requested that FSIS define the
term ``unique identifier.''
Response: The Agency proposed (9 CFR 312.8(a) and 381.104) that
exporters could use a unique identifier, linking the exported product
to the export certificate as an alternative to using the official
export stamp. Under the final rule, in order to provide greater
flexibility and alternative methods of identifying and stamping
product, FSIS will permit stamping of the pallet within the consignment
or closed means of conveyance transporting the consignment (e.g. truck,
rail car, or ocean container), provided that the stamp or unique
identifier links the consignment to the corresponding export
certificate. FSIS intends ``consignment'' to mean the product
represented on the export certificate (9 CFR 322.2(c)), 9 CFR
381.105(c), 9 CFR 590.407(b)), and that the stamped pallet will be
securely enclosed (e.g. shrink-wrapped or other effective means).
Offering these options for stamping is an outgrowth of FSIS's proposal
to give more flexibility in the export stamp process. It is important
to note that exporters must still meet any stamping requirements of the
importing foreign country, regardless of the flexibility offered by
FSIS in export stamping.
To provide greater flexibility and accommodation of technological
change, FSIS will not narrowly define the term ``unique identifier''
within its regulations, beyond the requirement that it must link the
exported product to the export certificate issued by inspection
personnel. In general, FSIS envisions the alternative mark as an
alphanumeric sequence that uniquely identifies the shipment and links
it to the export certificate. In the future, other methods and
technologies could be used to produce unique identifiers, as verified
by FSIS and determined acceptable by the importing country. Exporters'
use of unique identifiers as an alternative mark will be dependent on
acceptance by the importing country, as documented in the FSIS Export
Library. As noted above, the unique identifier provisions will not be
applicable until June 29, 2017. FSIS will work closely with importing
countries to determine their needs related to identifying the product
and will explain the alternative of using a unique identifier in place
of the export stamp.
Executive Orders 12866 and 13563, and the Regulatory Flexibility Act
Executive Orders (E.O.) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and
[[Page 42232]]
equity). Executive Order 13563 emphasizes the importance of quantifying
both costs and benefits, of reducing costs, of harmonizing rules, and
of promoting flexibility. This final rule has been designated a ``non-
significant'' regulatory action under section 3(f) of E.O. 12866.
Accordingly, the rule has not been reviewed by the Office of Management
and Budget (OMB).
FSIS has adopted the preliminary regulatory impact analysis with an
update to the paperwork burden estimates for egg plants.
Cost of the Final Rule
Based on the formula established in this rule, for exporters that
choose to utilize this new tool, the direct cost would be $4.03 per
export application. The application fee will be determined annually
based on the formula. The total cost to an exporter would depend on the
number of electronic applications processed. An exporter that processes
only a few applications per year would not likely experience a
significant economic impact.
Assuming that the number of applications will remain about 576,000,
based on recent application data,\5\ and exporters apply for all of
these certificates through this new portal, the total direct cost to
the exporting industry, when the PHIS Export Component is fully
implemented with all countries, will be approximately $2.3 million per
year. The indirect costs, which are indeterminate, will be the Internet
service and the acquisition or upgrading of a current computer system
to one that would be compatible with the PHIS. Under the final rule,
exporters may continue to submit paper-based export applications with
the Agency as to not incur the additional fee required by this rule.
---------------------------------------------------------------------------
\5\ * * *.
---------------------------------------------------------------------------
Egg plants will incur additional costs as a result of this final
rule. The total annual paperwork burden to egg exporters to fill out
the paper-based export application is estimated to be 3,333 \6\ hours a
year or $73,000 per year.\7\ The average exporter burden would be 16.7
hours or approximately $360 per exporter. There is no annual paperwork
burden to meat and poultry exporters since they are currently filling
out the export application.
---------------------------------------------------------------------------
\6\ Hours are derived from estimates of 200 for the number of
exporters, 100 for the number of responses per exporter, and 10
minutes to complete and submit an application. (200 * 100 * 10/60)
\7\ FSIS used the Occupational Code 43-5071 Shipping, Receiving,
and Traffic Clerks mean hourly wage (May 2014) of $15.27. (http://www.bls.gov/oes/current/oes435071.htm) The estimated benefits
percent share of total compensation for private industry 30.1%, with
the remaining 69.9% attributed to wages and salaries. Therefore, the
factor needed to multiply to wage rate to determine total
compensation rate is: (30.1%/69.9%) + 1 = 1.43. BLS Report available
at: http://www.bls.gov/news.release/ecec.nr0.htm. The total wage and
benefit rate is $15.27 * 1.43.
---------------------------------------------------------------------------
Expected Benefits of the Final Rule
The final rule will likely reduce the exporter and inspection
personnel workload and paperwork burden by reducing the physical
handling and processing of applications and certificates. The reduction
in workload and paperwork burden is based on the greater efficiency of
processing applications electronically and the number of applications
filed electronically. In the future, the PHIS Export Component will
facilitate the electronic government-to-government exchange of export
applications and certifications, which will assist in the resolution of
allegations of fraudulent transactions such as false alterations and
reproductions.
An indirect benefit of automating the export application and
certification system is that there will be an automatic, electronic
recordkeeping of the number and types of exporters, the types of
products exported to various countries, and the number of applications
and certificates issued through PHIS.
Further, the electronic export system will provide a streamlined
approach to processing applications and certificates. As a result,
there will be additional unquantifiable benefits because PHIS automates
the verification of eligibility and accuracy of certifications needed
and will speed up the process for these establishments. Also, any
potential documentation problems are likely to be resolved
electronically before the product arrives at the port, and as a result,
the products will likely move through ports faster than they do
currently. Thus, storage costs to exporters will be reduced, and the
product will reach its destination more quickly. Even exporters that
submit a paper-based application will benefit from the PHIS Export
Component. FSIS will enter the application into the PHIS, and the FSIS
verifications activities regarding eligibility and accuracy of
certifications will be automated.
FSIS Budgetary Effects
If fully adopted by the industry and our trading partners when the
PHIS Export Component is fully implemented, FSIS will recover the costs
of providing electronic application and certification service.
Regulatory Flexibility Analysis
The FSIS Administrator certifies that, for the purposes of the
Regulatory Flexibility Act (5 U.S.C. 601-602), the final rule will not
have a significant impact on a substantial number of small entities in
the United States. There are 6,074 meat, poultry, and egg products
establishments \8\ that could possibly be affected by this final rule
since all are eligible to export. Of this number, there are about, 391
large establishments, 2,505 small federally inspected establishments
(with more than 10 but less than 500 employees) and 3,178 very small
establishments (with fewer than 10 employees) based on HACCP
Classification.\9\ Therefore, a total of 5,683 small and very small
establishments could be possibly affected by this rule.
---------------------------------------------------------------------------
\8\ Establishment numbers from FSIS's Public Health Information
System, October 2014.
\9\ Ibid.
---------------------------------------------------------------------------
For the meat, poultry, and egg products industries, small and very
small exporters, like large exporters, would incur the $4.03 fee only
if they file their export application electronically. If they choose to
submit the paper application, they will bear no additional cost
compared to now. If exporters submit their applications electronically,
the average annual cost from this rule would be $382.00 per exporter
(576,192 export applications per year / 6,074 meat, poultry, and egg
products establishments * $4.03 per application).
For the approximately 200 egg product exporters, FSIS expects the
number of applications submitted to be 20,000 (200 exporters * 100
submissions \10\) for an estimated total cost of $81,000. The cost per
exporter would be $403 (20,000 applications * $4.03 / 200).
---------------------------------------------------------------------------
\10\ Estimate is from the paperwork reduction analysis.
---------------------------------------------------------------------------
If small establishments require fewer applications, then the cost
per small establishment is even lower. Therefore, the Agency believes
that the rule will not have a significant economic impact on a
substantial number of small entities.
Paperwork Reduction Act
In accordance with section 3507(d) of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the information collection was
approved under 0583-0153. This rule contains no other paperwork
requirements.
Copies of this information collection assessment can be obtained
from Gina Kouba, Paperwork Reduction Act Coordinator, Food Safety and
Inspection
[[Page 42233]]
Service, USDA, 1400 Independence Ave. SW., Room 6077 South Building,
Washington, DC 20250-3700; (202) 690-6510.
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under this rule: (1) All State and local laws and
regulations that are inconsistent with this rule will be preempted; (2)
no retroactive effect will be given to this rule; and (3) no
administrative proceedings will be required before parties may file
suit in court challenging this rule.
E-Government Act
FSIS and USDA are committed to achieving the purposes of the E-
Government Act (44 U.S.C. 3601, et seq.) by, among other things,
promoting the use of the Internet and other information technologies
and providing increased opportunities for citizen access to Government
information and services, and for other purposes.
Executive Order 13175
This final rule has been reviewed in accordance with the
requirements of Executive Order 13175, Consultation and Coordination
with Indian Tribal Governments. The review reveals that this regulation
will not have substantial and direct effects on Tribal governments and
will not have significant Tribal implications.
USDA Non-Discrimination Statement
No agency, officer, or employee of the USDA shall, on the grounds
of race, color, national origin, religion, sex, gender identity, sexual
orientation, disability, age, marital status, family/parental status,
income derived from a public assistance program, or political beliefs,
exclude from participation in, deny the benefits of, or subject to
discrimination any person in the United States under any program or
activity conducted by the USDA.
How To File a Complaint of Discrimination
To file a complaint of discrimination, complete the USDA Program
Discrimination Complaint Form, which may be accessed online at http://www.ocio.usda.gov/sites/default/files/docs/2012/Complain_combined_6_8_12.pdf, or write a letter signed by you or your
authorized representative.
Send your completed complaint form or letter to USDA by mail, fax,
or email:
Mail: U.S. Department of Agriculture, Director, Office of
Adjudication, 1400 Independence Avenue SW., Washington, DC 20250-9410.
Fax: (202) 690-7442.
Email: [email protected].
Persons with disabilities who require alternative means for
communication (Braille, large print, audiotape, etc.), should contact
USDA's TARGET Center at (202) 720-2600 (voice and TDD).
Additional Public Notification
FSIS will announce this rule online through the FSIS Web page
located at http://www.fsis.usda.gov/wps/portal/fsis/topics/regulations/federal-register/interim-and-final-rules.
FSIS will also make copies of this Federal Register publication
available through the FSIS Constituent Update, which is used to provide
information regarding FSIS policies, procedures, regulations, Federal
Register notices, FSIS public meetings, and other types of information
that could affect or would be of interest to constituents and
stakeholders. The Update is communicated via Listserv, a free
electronic mail subscription service for industry, trade groups,
consumer interest groups, health professionals, and other individuals
who have asked to be included. The Update is also available on the FSIS
Web page. In addition, FSIS offers an electronic mail subscription
service which provides automatic and customized access to selected food
safety news and information. This service is available at http://www.fsis.usda.gov/subscribe.
Options range from recalls to export information to regulations,
directives, and notices. Customers can add or delete subscriptions
themselves, and have the option to password protect their accounts.
List of Subjects
9 CFR Part 312
Food labeling, Meat inspection, Signs and symbols.
9 CFR Part 322
Exports, Meat inspection.
9 CFR Part 350
Meat inspection, Reporting and recordkeeping requirements.
9 CFR Part 362
Meat inspection, Poultry and poultry products, Reporting and
recordkeeping requirements.
9 CFR Part 381
Meat inspection, Poultry and poultry products, Reporting and
recordkeeping requirements.
9 CFR Part 590
Eggs and egg products, Exports, Food grades and standards, Food
labeling, Imports, Reporting and recordkeeping requirements.
9 CFR Part 592
Eggs and egg products, Exports, Food grades and standards, Food
labeling, Imports, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, FSIS amends 9 CFR
chapter III as follows:
PART 312--OFFICIAL MARKS, DEVICES AND CERTIFICATES
0
1. The authority citation for part 312 continues to read as follows:
Authority: 21 U.S.C. 601-695; 7 CFR 2.17, 2.55.
0
2. Revise Sec. 312.8 to read as follows:
Sec. 312.8 Export inspection marks.
The export inspection mark required in Sec. 322.1 of this chapter
must be either a mark that contains a unique identifier that links the
consignment to the export certificate or an official mark with the
following form:\1\
---------------------------------------------------------------------------
\1\ The number ``1234567'' is given as an example only. The
number on the mark will correspond to the printed number on the
export certificate.
[GRAPHIC] [TIFF OMITTED] TR29JN16.015
---------------------------------------------------------------------------
PART 322--EXPORTS
0
3. The authority citation for part 322 continues to read as follows:
Authority: 21 U.S.C. 601-695; 7 CFR 2.17, 2.55.
0
4. Revise Sec. 322.1 to read as follows:
Sec. 322.1 Marking products for export.
(a) When authorized by inspection personnel, establishment
personnel must mark the outside container of any inspected and passed
product for export, the securely enclosed pallet within the
consignment, or closed means of conveyance transporting the
consignment, with a mark that contains a unique identifier that links
the consignment to the export certificate or an official mark as
described in Sec. 312.8 of this chapter. Ship stores, small quantities
exclusively for the personal use of the consignee and not for sale or
distribution, and shipments by and for the U.S. Armed Forces, are
exempt from the requirements of this section.
[[Page 42234]]
(b) When authorized by inspection personnel, establishments must
mark each tank car of inspected and passed lard or similar edible
product, and each door of each railroad car or other closed means of
conveyance, containing inspected and passed loose product shipped
directly to a foreign country, with an export inspection mark as shown
in Sec. 312.8 of this subchapter.
0
5. Revise Sec. 322.2 to read as follows:
Sec. 322.2 Export certification.
(a) Exporters must apply for export certification of inspected and
passed products shipped to any foreign country. Exporters may apply for
an export certificate using a paper or electronic application. FSIS
will assess exporters that submit an electronic application the charge
in Sec. 350.7(e) of this chapter.
(b) FSIS will issue only one certificate for each consignment,
except in the case of error in the certificate or loss of the
certificate originally issued. A request for a replacement certificate,
except in the case of a lost certificate, must be accompanied by the
original certificate. The new certificate will carry the following
statement: ``Issued in replacement of ___'', with the numbers of the
certificates that have been superseded.
(c) FSIS will deliver a copy of the certificate to the exporter.
The exporter may furnish the copy of the certificate to the consignee
for purposes of affecting the entry of product into the foreign country
of destination.
(d) FSIS will retain a copy of the certificate.
(e) Exporters may request inspection personnel to issue
certificates for export consignments of product of official
establishments not under their supervision, provided the consignments
are first identified as having been ``U.S. inspected and passed,'' are
found to be neither adulterated nor misbranded, and are marked as
required by Sec. 322.1.
PART 350--SPECIAL SERVICES RELATING TO MEAT AND OTHER PRODUCTS
0
6. The authority citation for part 350 continues to read as follows:
Authority: 7 U.S.C. 1622, 1624; 7 CFR 2.17, 2.55.
0
7. In Sec. 350.7, add paragraphs (e), (f), and (g) to read as follows:
Sec. 350.7 Fees and charges.
* * * * *
(e) Exporters that submit electronic export certificate
applications will be charged a fee per application submitted.
(f) For each calendar year, FSIS will calculate the electronic
export certificate application fee, using the following formula: Labor
Costs (Technical Support Cost + Export Library Maintenance Cost) +
Information Technology Costs (On-going operations Cost + Maintenance
Cost + eAuthentication Cost), divided by the number of export
applications.
(g) FSIS will publish notice of the electronic export certificate
application fee annually in the Federal Register.
PART 362--VOLUNTARY POULTRY INSPECTION REGULATIONS
0
8. The authority citation for part 362 continues to read as follows:
Authority: 7 U.S.C 1622; 7 CFR 2.18(g) and (i) and 2.53.
0
9. In Sec. 362.5, add paragraphs(e), (f), and (g) to read as follows:
Sec. 362.5 Fees and charges.
* * * * *
(e) Exporters that submit electronic export certificate
applications will be charged a fee per application submitted.
(f) For each calendar year, FSIS will calculate the electronic
export certificate application fee, using the following formula: Labor
Costs (Technical Support Cost + Export Library Maintenance Cost) +
Information Technology Costs (On-going operations Cost + Maintenance
Cost + eAuthentication Cost), divided by the number of export
applications.
(g) FSIS will publish notice of the electronic export certificate
application fee annually in the Federal Register.
PART 381--POULTRY PRODUCTS INSPECTION REGULATIONS
0
10. The authority citation for part 381 continues to read as follows:
Authority: 7 U.S.C. 138F, 450; 21 U.S.C. 451-470; 7 CFR 2.7,
2.18, 2.53.
0
11. Revise Sec. 381.104 to read as follows:
Sec. 381.104 Export inspection marks.
The export inspection mark required in Sec. 381.105 must be either
a mark that contains a unique identifier that links the consignment to
the export certificate or an official mark with the following form: \1\
[GRAPHIC] [TIFF OMITTED] TR29JN16.016
\1\ The number ``1234567'' is given as an example only. The
number on the mark will correspond to the printed number on the
export certificate.
0
12. Revise Sec. 381.105 to read as follows:
Sec. 381.105 Marking products for export.
When authorized by inspection personnel, establishments must mark
the outside container of any inspected and passed product for export,
the securely enclosed pallet within the consignment, or closed means of
conveyance transporting the consignment, with a mark that contains a
unique identifier that links the consignment to the export certificate
or an official mark as described in Sec. 381.104. Ship stores, small
quantities exclusively for the personal use of the consignee and not
for sale or distribution, and shipments by and for the U.S. Armed
Forces, are exempt from the requirements of this section.
0
13. Revise Sec. 381.106 to read as follows:
Sec. 381.106 Export certification.
(a) Exporters must apply for export certification of inspected and
passed products to any foreign country. Exporters may apply for an
export certificate using a paper or electronic application. FSIS will
assess exporters that submit an electronic application the charge in
Sec. 362.5(e) of this chapter.
(b) FSIS will issue only one certificate for each consignment,
except in the case of error in the certificate or loss of the
certificate originally issued. A request for a replacement certificate,
except in the case of a lost certificate, must be accompanied by the
original certificate. The new certificate will carry the following
statement: ``Issued in replacement of ___'', with the numbers of the
certificates that have been superseded.
(c) FSIS will deliver a copy of the certificate to the person who
requested such certificate or his agent. Such persons may duplicate the
certificate as required in connection with the exportation of the
product.
(d) FSIS will retain a copy of the certificate.
(e) Exporters may request inspection personnel to issue
certificates for export consignments of product of official
establishments not under their supervision, provided the consignments
are first identified as having been ``U.S. inspected and passed,'' are
found to be
[[Page 42235]]
neither adulterated nor misbranded, and are marked as required by Sec.
381.105.
PART 590--INSPECTION OF EGGS AND EGG PRODUCTS (EGG PRODUCTS
INSPECTION ACT)
0
14. The authority citation for part 590 continues to read as follows:
Authority: 21 U.S.C. 1031-1056.
0
15. Add Sec. 590.407 to read as follows:
Sec. 590.407 Export certification and marking of containers with
export inspection mark.
(a) Exporters must apply for export certification of inspected and
passed products shipped to any foreign country. Exporters may apply for
an export certificate using a paper or electronic application. FSIS
will assess exporters that submit an electronic application the charge
in Sec. 592.500(d) of this chapter.
(b) FSIS will issue only one certificate for each consignment,
except in the case of error in the certificate or loss of the
certificate originally issued. A request for a replacement certificate,
except in the case of a lost certificate, must be accompanied by the
original certificate. The new certificate will carry the following
statement: ``Issued in replacement of ___'', with the numbers of the
certificates that have been superseded.
(c) FSIS will deliver a copy of the export certificate to the
person who requested such certificate or his agent. Such persons may
duplicate the certificate as required in connection with the
exportation of the product.
(d) FSIS will retain a copy of the certificate.
(e)(1) When authorized by inspection personnel, establishments must
mark the outside container of any inspected and passed egg products
destined for export, the securely enclosed pallet within the
consignment, or closed means of conveyance transporting the
consignment, with a mark that contains a unique identifier that links
the consignment to the export certificate or an official mark with the
following form: \1\
---------------------------------------------------------------------------
\1\ The number ``1234567'' is given as an example only. The
number on the export certificate will correspond to the printed
number on the export certificate.
[GRAPHIC] [TIFF OMITTED] TR29JN16.017
(2) Ship stores, small quantities exclusively for the personal use
of the consignee and not for sale or distribution, and shipments by and
for the U.S. Armed Forces, are exempt from the requirements of this
section.
(f) Exporters may request inspection personnel to issue
certificates for export consignments of product of official
establishments not under their supervision, provided the consignments
are first identified as having been ``U.S. inspected and passed,'' are
found to be neither adulterated nor misbranded, and are marked as
required by paragraph (e) of this section.
PART 592--VOLUNTARY INSPECTION OF EGG PRODUCTS
0
16. The authority citation for part 592 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
0
17. In Sec. 592.20, add paragraph (d) to read as follows:
Sec. 592.20 Kinds of services available.
* * * * *
(d) Export certification. Upon application, by any person intending
to export any egg product, inspectors may make certifications regarding
products for human food purposes, to be exported, as meeting conditions
or standards that are not imposed or are in addition to those imposed
by the regulations in the part and the laws under which such
regulations were issued.
0
18. In Sec. 592.500, revise paragraph (a) and add paragraphs (d), (e),
and (f) to read as follows:
Sec. 592.500 Payment of fees and charges.
(a) Fees and charges for voluntary base time rate, overtime
inspection service, holiday inspection service, and electronic export
applications shall be paid by the interested party making the
application for such service, in accordance with the applicable
provisions of this section and Sec. 592.510 through Sec. 592.530,
both inclusive. If so required by the inspection personnel, such fees
and charges shall be paid in advance.
* * * * *
(d) Exporters that submit electronic export certificate
applications will be charged a fee per application submitted.
(e) For each calendar year, FSIS will calculate the electronic
export certificate application fee, using the following formula: Labor
Costs (Technical Support Cost + Export Library Maintenance Cost) +
Information Technology Costs (On-going operations Cost + Maintenance
Cost + eAuthentication Cost), divided by the number of export
applications.
(f) FSIS will publish notice of the electronic export certificate
application fee annually in the Federal Register.
Done at Washington, DC, on June 17, 2016.
Alfred V. Almanza,
Acting Administrator.
[FR Doc. 2016-14812 Filed 6-28-16; 8:45 am]
BILLING CODE 3410-DM-P