[Federal Register Volume 61, Number 89 (Tuesday, May 7, 1996)]
[Rules and Regulations]
[Pages 20421-20437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11211]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 61, No. 89 / Tuesday, May 7, 1996 / Rules and
Regulations
[[Page 20421]]
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
9 CFR Part 130
[Docket No. 92-174-2]
RIN 0579-AA67
Import/Export User Fees
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Final rule.
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SUMMARY: We are amending user fees for certain import- and export-
related services we provide for live animals and birds, animal
products, organisms and vectors, and germ plasm and veterinary
diagnostic services. We are also establishing user fees for certain
import- and export-related services we provide for live animals and
birds, and animal products and byproducts. We are also making several
miscellaneous changes, such as amending the definitions of certain
words. These actions are necessary to help ensure that we recover our
costs and to simplify and clarify the application of user fees for the
public. These actions are taken in accordance with the Food,
Agriculture, Conservation, and Trade Act of 1990, as amended, which
gives us the authority to set and collect these user fees.
EFFECTIVE DATE: June 6, 1996.
FOR FURTHER INFORMATION CONTACT: For information concerning services
provided for live animals and birds, and germ plasm, contact Dr. Gary
S. Colgrove, Chief Staff Veterinarian, National Center for Import and
Export, VS, APHIS, 4700 River Road Unit 38, Riverdale, MD 20737-1231;
(301) 734-3294.
For information concerning services provided for animal products
and byproducts, organisms and vectors, contact Dr. Kathleen Akin,
Senior Staff Veterinarian, Import/Export Products, VS, APHIS, 4700
River Road Unit 40, Riverdale, MD 20737-1231; (301) 734-7830.
For information concerning services provided for veterinary
diagnostics, contact Dr. James E. Pearson, Acting Director, National
Veterinary Services Laboratories, P.O. Box 844, Ames, IA 50010; (515)
239-8266.
For information concerning fees, contact Ms. Barbara Thompson,
Chief, Financial Systems and Services Branch, Budget and Accounting
Division, APHIS, 4700 River Road Unit 54, Riverdale, MD 20737-1232;
(301) 734-5901.
SUPPLEMENTARY INFORMATION:
Background
The Food, Agriculture, Conservation and Trade Act of 1990, as
amended (referred to below as the Farm Bill), authorizes the Secretary
of Agriculture, among other things, to prescribe and collect fees to
reimburse the Secretary for the cost of carrying out the provisions of
the Federal animal quarantine laws that relate to the importation,
entry, and exportation of animals, articles, or means of conveyance
(section 2509(c)(1) of the Farm Bill). The Secretary of Agriculture is
also authorized, under section 2509(c)(2) of the Farm Bill, to
prescribe and collect fees to recover the costs of carrying out certain
veterinary diagnostics services.
The user fee regulations in 9 CFR part 130 (referred to below as
the regulations) prescribe user fees that the Animal and Plant Health
Inspection Service (APHIS) of the U.S. Department of Agriculture (USDA)
collects for various services that APHIS provides. The regulations
currently include user fees for: (1) Providing quarantine, importation,
and entry services within the United States for imported animals; (2)
conducting certain veterinary diagnostics services; (3) endorsing
export health certificates for animals; (4) providing certain
inspection and supervision services within the United States for
animals intended for export; and (5) conducting certain veterinary
inspections outside the United States.
Our user fees are calculated to recover the full cost of providing
the service for which the user fee is charged. The cost of providing a
service includes direct labor costs and a pro rata share of
administrative support, agency overhead, and Departmental charges.
On May 26, 1995, we published in the Federal Register (60 FR 27913-
27924, Docket No. 92-174-1) a proposal to amend the regulations by
revising and adding new hourly, minimum, and flat rate user fees in the
regulations. We proposed to increase most of the hourly, minimum, and
flat rate user fees for import-related services in Secs. 130.2, 130.3,
130.5, 130.6, 130.7, and 130.9 of the regulations and for export-
related services in Secs. 130.9 and 130.21 of the regulations. For
services performed on overtime, we proposed to add new premium hourly
rate user fees, to replace the practice of charging two separate hourly
rates (see Secs. 130.5, 130.9 and 130.21 of the regulations). We
proposed to add a new minimum user fee in Sec. 130.3 of the
regulations. We proposed to add a new Sec. 130.10 for hourly, minimum,
and flat rate user fees for pet birds. We proposed to add new
requirements for special mail handling to be paid for by the user in
Secs. 130.14 through 130.18 of the regulations. We proposed to add a
new fee for nonendorsed export health certificates in Sec. 130.20 of
the regulations. Additionally, we proposed to accept credit cards in
certain locations as an optional payment method. We also proposed to
make several other changes to simplify and clarify the regulations.
We solicited comments concerning our proposal for 60 days ending
July 25, 1995. We received 60 comments by that date. They were from
veterinarians, representatives of agricultural industries, exporters,
producers, a State department of livestock, a Member of Congress, and
other interested parties.
Summary of Changes Made in Response to Comments
We are making the following changes in response to the comments we
received. We are combining the services covered under Sec. 130.4 with
the services covered under Sec. 130.5. Section 130.4 covers inspection
services at privately operated permanent import-quarantine facilities.
Under Sec. 130.4, a flat rate user fee is charged for each animal
quarantined at the facility. Section 130.5 covers inspection services
at privately operated temporary import-quarantine facilities. Under
Sec. 130.5, an hourly user fee is charged for animals quarantined at
the facility. We are adding quarter-hour
[[Page 20422]]
and minimum user fee rates to premium user fees added in Secs. 130.5,
130.9, and 130.21. We are clarifying Sec. 130.20(a) and
Sec. 130.20(b)(1) to specify that the user fees listed in
Sec. 130.20(b)(1) for endorsing export health certificates which
require tests or vaccinations are charged for endorsements when tests
or vaccinations are required. We are changing ``APHIS veterinarian'' to
``designated APHIS employee'' and changing ``requested'' to ``requested
and reviewed'' in Sec. 130.20(d) of this final rule. In addition, we
are revising the text of footnote 9 to reflect the availability of
lists for APHIS offices that accept cash or credit cards. Footnotes to
text or tables in Secs. 130.7, 130.8, 130.10, 130.14, and 130.15 have
been revised to add clarity. The comments and responses are discussed
below by topic.
General Comments
One commenter opposed the entire proposed rule. All of the other
commenters opposed some portion of the proposed rule. Twelve commenters
included the following positive comments concerning user fees and the
services APHIS provides. Several commenters expressed an understanding
of our need to increase user fees or supported user fees which cover
costs. Several expressed appreciation for the services APHIS provides,
such as APHIS' role in disease control and maintenance of a healthy and
robust livestock industry in the United States, helping export business
in the United States, and negotiating import- and export-related issues
with foreign countries. One commenter supported modest increases in
certain user fees as proposed.
1. Taxes and Budget Deficit
Nine commenters expressed concerns about taxes and the budget
deficit. Some commenters expressed more than one concern; specific
concerns follow.
Two commenters stated that APHIS was assessing taxes of its own
volition. Six commenters stated that the APHIS user fee is a tax, not a
fee.
A tax is money paid to support government operations that benefit
the general public. A user fee is money collected for a specific
service provided to a readily identifiable recipient. The 1990 Farm
Bill authorizes USDA to prescribe and collect user fees to reimburse
the cost of carrying out certain import- and export-related services
for animals, animal products, and veterinary diagnostics. The Farm Bill
further states that ``Any person for whom an activity related to the
importation, entry, or exportation of an animal, article, or means of
conveyance or relating to veterinary diagnostics, is performed pursuant
to the section, shall be liable for payment of fees assessed.''
Generally speaking, no one is required to conduct any business or
endeavor which is regulated by APHIS. However, anyone who does so must
comply with APHIS requirements. In this manner, all users ask for
service from APHIS. The APHIS user fees herein are designed to recover
and fund the cost of providing specific services. As such, the APHIS
user fee is a fee for specific services provided to a certain portion
of the public and, therefore, is not a tax.
Three commenters stated that our services are already paid for by
taxes, and therefore, we should not charge fees for them. One commenter
suggested that we should fund increases in the costs through other
methods.
After the passage of the 1990 Farm Bill, Congress reduced APHIS'
appropriations (i.e., tax revenue) by the estimated costs of providing
these import- and export-related services. Congress authorized APHIS to
recover all costs associated with these services by establishing and
charging user fees. Consequently, any increases in our costs must be
recovered by increasing the user fees we charge. Otherwise, we would
have to reduce or discontinue the service or use funds appropriated for
other purposes, to the detriment of the program from which the funds
were reallocated.
One commenter stated that APHIS user fees should not be used for
general Federal budget deficit reduction. One commenter questioned what
will be done with revenues.
The user fees are not being used for general Federal budget deficit
reduction in the sense that the revenue does not fund or offset general
government operations. The user fees collected pay for the actual user
fee services provided and will allow APHIS to continue providing
import- and export-related and veterinary diagnostic services. The user
fees our Agency collects for these services are deposited into user fee
accounts, and the salaries of veterinarians, animal health technicians,
and other APHIS personnel who perform these services are paid from this
account. An employee who spends a portion of his work time on user fee
activities and a portion on other activities is paid the appropriate
percentage of his salary with user fee revenue. In addition, a pro rata
share of administrative support, agency overhead, and Departmental
charges is paid from this account.
Two commenters questioned user fees as they relate to other APHIS
services. One commenter questioned charging user fees for certain
services when other services are provided at no cost. The commenter
referenced free rabies vaccination clinics on reservations.
The Farm Bill identified specific program areas for the
implementation of user fees, generally related to the importation and
exportation of animals and animal products. APHIS does not have the
authority under the Farm Bill to charge fees for other services, such
as rabies vaccinations, which we provide on reservations to protect
public health.
2. Fee Calculations
We received several comments related to how we calculated our user
fees. One commenter was concerned about the methods used to calculate
the fees and the possibility that the user fees are underwriting other
APHIS services. Several comments questioned whether we should include
certain cost factors, for example, agency overhead charges, in
calculating user fees. Other comments stated that we would recover more
money from our proposed user fees than it costs to provide APHIS
services.
As described in the proposal, the user fees were calculated to
recover the full cost of providing the service for which the fee is
charged. ``Full cost'' includes not only the direct labor of the
veterinarian, animal health technician, or other APHIS personnel
providing the service, but a pro rata share of administrative support,
agency overhead, and Departmental charges. These additional indirect
and overhead costs are included as directed in the Office of Management
and Budget (OMB) Circular A-25, User Charges, and in accordance with
generally accepted cost accounting principles.
Had Congress intended for APHIS to recover only direct labor costs,
the authorizing language would have specified that and Congress would
have continued to give APHIS appropriations to fully fund all indirect
and overhead costs associated with import- and export-related services.
The comments that we may be underwriting other services and that we
will recover more money than it costs to provide the service would only
be true if the Farm Bill authorized us to only recover direct costs.
However, because we are authorized to fully recover all costs, our fees
include all appropriate direct, indirect, and overhead costs.
3. Trade Concerns
Twenty-eight commenters expressed concern about the increases in
user fees and the possible subsequent decrease in exports.
[[Page 20423]]
We realize that payment of the proposed user fees will increase the
up-front cost of doing business for importers and exporters. However,
before this time, users have been subsidized by the taxpayers in
general, in that those who receive services from APHIS have not been
charged the full cost for services. As explained above, appropriations
from taxes are not available to fund these services. To continue
providing import- and export-related and veterinary diagnostic
services, APHIS must charge user fees which will recover the costs of
providing services. We attempt to minimize the cost of our services to
keep APHIS user fees at the lowest possible level. We do not anticipate
that exports will decline significantly as a result of these increases
in user fees.
Many commenters stated that our proposed user fees would make it
difficult or impossible for U.S. products to compete in the
international marketplace. Examples of the issues raised included the
following: U.S. products will be less competitive, the increased user
fees will be a deterrent to international trade, exportation of animals
will become unprofitable, and there will be a decrease in export
activity. Many of these comments mentioned trade related issues with
Canada.
Although some countries do not currently charge for import- and
export-related services, user fees for these services are being adopted
by more and more countries. In fact, as of May 3, 1995, Canada charges
user fees for certain import- and export-related animal health services
(see May 3, 1995, Canada Gazette Part II, Vol. 129, No. 9, SOR/DORS/95-
198). Therefore, we do not believe that U.S. exporters are at a
competitive disadvantage compared with exporters in other countries.
4. Other Countries' Requirements
Two commenters raised the following concerns related to the
requirements other countries impose on U.S. exports. One commenter
questioned why it costs significantly more to export animals to Canada
as opposed to exporting animals to the European Union.
APHIS costs for export-related services depend on the importing
countries' requirements. Canada has significantly different paperwork
requirements than most other countries in the world. Often, more work
is required on the part of APHIS employees to ensure the animals being
exported have met all of Canada's paperwork requirements. In those
instances, the user fees for animals being exported to Canada may be
higher than for animals exported to the rest of the world.
One commenter suggested that APHIS should seek elimination of
import- and export-related testing procedures which are not science- or
risk-based and which may add unnecessary costs to import- and export-
related procedures.
According to the World Trade Organization (WTO), as established by
the Uruguay Round of the General Agreement on Tariffs and Trade, and
the North American Free Trade Agreement (NAFTA), effective January
1995, import- and export-related requirements must be science- and
risk-based. Along with the United States, many countries are revising
their requirements to comply with WTO and NAFTA. In addition, APHIS
continually negotiates with other countries to achieve less onerous
import requirements for U.S. exporters. Since our costs vary depending
on the requirements imposed by the importing country, when other
countries lessen their import requirements, our user fees may decrease.
For example, if a country were to no longer require tests or were to
allow more animals on a single export health certificate, the average
amount of time it would take to provide endorsement services would
decrease and the user fees charged could decrease.
5. Improve Services to Lower Costs
Six commenters suggested that we lower costs and simplify paperwork
requirements. Five commenters suggested that we review and improve
services. Specific suggestions included privatizing services,
automating services, streamlining tests, increasing field staff, and
basing user fees on speed of service.
APHIS continually strives to improve efficiency in operations.
APHIS seeks to eliminate duplication of services and to utilize
employees better without jeopardizing the quality of our work in
carrying out the provisions of the Federal animal quarantine laws. Most
paperwork services and the related costs associated with imports and
exports are required by the importing country and we cannot do anything
directly to change those requirements. However, as explained above, we
do try to negotiate with other countries to make requirements less
onerous. If we propose to eliminate a service for which we have a user
fee, then we will also propose to eliminate the user fee. Likewise, if
in the future we propose to add a service, then we may also propose to
add a user fee for the service. If we propose in the future to
substantially change a service for which we charge a user fee, then we
will recalculate the user fee for the service to reflect those changes.
6. Economic Analysis
One commenter stated that we should have included a small business
impact statement in the proposed rule.
A regulatory flexibility analysis, which includes a small business
impact statement, was included in the proposed regulations at 60 FR
27919-27920.
One commenter stated that the costs used in our economic analysis
did not provide an accurate picture of how importers assess costs
related to importing animals. The commenter specified that these costs
are generally broken down into the following three areas: the purchase
price of the animal, freight charges, and importing or exporting
expenses.
The costs used in the economic analysis performed for the
regulatory flexibility analysis for the proposal included all of these
expenses. As stated in the proposal, the figures shown in the analysis
included purchase and import costs, including freight. Therefore, we
are making no changes as a result of this comment.
7. Effective Date
Three commenters suggested that we delay the effective date of the
final rule.
We understand the commenters' desire to make business plans and not
have business affected by increases in our user fees. Our proposal
signaled our intention to revise the import- and export-related service
user fees. The proposal was published in the Federal Register on May
25, 1995, and open for public comments for 60 days. This rule will not
take effect until 30 days after the date it is published in the Federal
Register. This delay should give the commenters and others adequate
time to prepare.
8. Independent Review
One commenter suggested that a review team should be established to
conduct an independent user fee review.
APHIS monitors user fees regularly and reviews user fees at least
annually to ensure that they continue to correspond with our costs. In
addition, outside reviews are performed by the Office of the Inspector
General and the General Accounting Office (GAO).
9. Privately Owned Import Quarantine Facilities (Secs. 130.4 and 130.5)
One commenter pointed out that inspection services for animals
provided for privately owned permanent import quarantine facilities
under Sec. 130.4 are
[[Page 20424]]
similar to those provided for privately owned temporary import
quarantine facilities under Sec. 130.5, and stated that having
different user fees for similar services is unfair. The commenter
stated that depending on the number of animals being imported, the user
fees could be less for the services provided under Sec. 130.5 during
the regular tour of duty and on overtime than the user fee for the same
services if provided under Sec. 130.4. The commenter asked if APHIS is
recovering all the import-related costs from the hourly user fee
charged under Sec. 130.5; and if so, why is there such a difference
between that hourly user fee and the per head flat rate user fee plus
reimbursable overtime proposed under Sec. 130.4 which can be higher.
The commenter is correct that depending on the number of animals
being imported, if service must be provided on overtime, then the per
head user fees charged under Sec. 130.4 can be higher than the hourly
user fees charged under Sec. 130.5. We have evaluated this situation
and have determined that based on the similar nature of the services
being provided, animals that are imported into a permanent facility
should be charged at the same rate as those imported into a temporary
facility. As suggested by the commenter, we are making the fees the
same. We are making this change by eliminating Sec. 130.4 and including
privately owned permanent import quarantine facilities under
Sec. 130.5.
10. Overtime and Premium User Fees (Secs. 130.5, 130.9, and 130.21)
One commenter stated that charging both reimbursable overtime and
the flat rate user fee under Sec. 130.4 is double charging for the time
spent by USDA personnel.
As explained above, we are eliminating Sec. 130.4 and these
services will now be covered under Sec. 130.5. Under Sec. 130.5, during
overtime, only the premium rate user fee will be charged.
One commenter asked if there are any quarter- or half-hour premium
user fee rates for the premium hourly user fee. We are adding quarter-
hour and minimum rates for each of the new premium user fees. Not
listing such rates was an oversight in the proposal. For periods of
less than an hour, the quarter-hour premium rate will be multiplied by
2 or 3 for half and three quarters of an hour, respectively. Therefore,
we are not adding half-hour premium rates. The premium user fee will
become the new hourly overtime charge for import- and export-related
services; it will apply to services provided under Secs. 130.5, 130.9,
and 130.21 and replace our previous policy of charging a user fee at
the hourly rate (per 9 CFR part 130) plus reimbursable overtime at the
hourly rate (per 9 CFR part 97).
One commenter protested that the proposed premium user fee is an
increase over the current overtime rate.
While the hourly rate for the premium user fee is higher than the
hourly reimbursable overtime rate, application of the premium user fee
will decrease the overall user fee charges because the premium user fee
will be charged in lieu of both the hourly user fee and reimbursable
overtime. Therefore, we are making no changes based on this comment.
One commenter questioned how the new premium user fee will apply.
Another commenter, stating that work for which the user fees are
charged usually takes 15 minutes, protested the minimum time charged
for the work during overtime.
For clarification, in Secs. 130.5, 130.9, and 130.21 we will add
that the procedures for applying the new premium user fee rates will
follow the procedures for applying reimbursable overtime as prescribed
under 9 CFR part 97 with regard, for example, to call-backs,
continuation, commuted travel time, and maximum travel times. For
example, when 9 CFR part 97 prescribes a 2 hour minimum, that 2 hour
minimum will be charged at the premium user fee rate. This is
consistent with United States Code, Title 5 Government Organizations
and Employees, Subchapter V Premium Pay, section 5542 (referenced in
the authority citation for this final rule), which states that
``unscheduled overtime work performed by an employee on a day when work
was not scheduled for him, or for which he is required to return to his
place of employment, is deemed at least 2 hours in duration.'' Because
employees are entitled to a 2 hour minimum of pay in these
circumstances, we must charge a minimum of 2 hours in order to recover
the cost of providing that service on overtime.
11. Import Fee (Sec. 130.7)
One commenter stated that the user fee charged in Sec. 130.7 would
not fully recover costs if an APHIS veterinarian had to travel to a
port to perform the inspections. The commenter suggested that we change
this flat rate user fee to an hourly user fee to fully recover costs.
The commenter is correct that, as calculated, the user fees may not
cover the costs of providing import and entry services at any given air
or ocean port. These user fees were calculated based on the average
time required for an APHIS employee to provide import or entry services
at all ports. The occasional inspections which require an APHIS
veterinarian to travel to a limited port, as designated in 9 CFR part
92, were one of the many factors considered in calculating the user
fees. To reflect past experience, the calculation for these user fees
included 2 hours of travel time for 1 percent of the estimated
importations. We are making no changes based on this comment. However,
we will consider this for future revisions to the user fees. All user
fee changes will be published in the Federal Register for public
comment.
12. Germ Plasm User Fees (Sec. 130.8)
One commenter questioned the statement in the proposal that empty
germ plasm containers that have been exported are presented for
inspection when returned to the United States. The commenter asked if
there was a protocol in place to ensure that these containers are
presented for inspection.
APHIS employees review ship manifests to determine which items need
to be held for inspection. The empty germ plasm containers are listed
on the ship manifests, held, and inspected.
One commenter suggested charging an hourly user fee for import germ
plasm inspections because the time spent performing the inspections at
the port is usually 3 hours; this time would not be covered by the flat
rate user fee.
The calculation for the user fee for imported germ plasm considered
inspection at all ports. These user fees were calculated on the average
direct labor hours required for the inspections nationwide. We surveyed
APHIS employees performing the inspections and visited ports to
determine the amount of direct labor required for the inspections.
Therefore, we are making no changes based on this comment. However, we
will consider this for future revisions. All user fee changes will be
published in the Federal Register for public comment.
One commenter suggested we charge the same amount for endorsing
export health certificates for each group of five embryo donor pairs.
We have determined that there is a marginal cost decrease to
endorse additional groups of donor pairs on the same export health
certificate. User fees are calculated to recover only the cost of
services. Therefore, the proposed tiered user fee rate, with a lower
fee for additional groups of donor pairs on the same certificate, is
appropriate. We are making no changes based on this comment.
[[Page 20425]]
13. User Fees for Endorsing Export Health Certificates (Sec. 130.20)
The May 26, 1995, proposed rule also proposed to raise user fees
for endorsing export health certificates for the exportation of animals
and animal products. APHIS employees endorse export health certificates
in accordance with the regulations in 9 CFR part 91. An APHIS
endorsement certifies that animals and animal products being exported
from the United States are free from communicable diseases.
Most of the comments we received addressed these user fees. The
commenters were opposed to any fee increases. The comments raised the
following issues.
User Fee Increases
According to most of the commenters, proposed user fees for
endorsement of export health certificates are too high, and the
increases are not justified.
We understand that some of the proposed user fees for endorsement
of export health certificates are significantly higher than the
previous user fees. The reason is that the previous user fees were
based on estimates and were set too low. The original user fees for
export health certificates implemented in January 1992 were calculated
using the best information available at that time. Since that time,
APHIS has separately identified, through our accounting system, costs
for services for which user fees are authorized. Our accounting data
and a deficit of over $1 million for each fiscal year from 1992 through
1994 for export-related user fee services shows that the previous user
fees have not been recovering our costs. Our proposed user fees were
calculated based on more accurate information, including all of the
costs of providing our services, than was available when we calculated
our previous user fees.
In addition to our accounting data, we surveyed APHIS locations
nationwide where export health certificates are endorsed to identify
the amount of direct labor time APHIS employees spend providing these
services. Direct labor activities may include the following: Telephone
time for providing information about the export health certification
process, mailing information to customers, protocol research, review of
paperwork such as health certificates, verification of laboratory test
results, confirmation that the importing country's requirements have
been met, paperwork completeness review, certification statements
review, endorsement/signing, placing an official seal on documents if
needed, and completing APHIS paperwork related to the endorsement. Many
of the activities listed above must be performed to make it possible
for APHIS employees to endorse the export health certificates. Some
endorsements are for exportations which are routine and require
relatively little time. Other endorsements require more work and
therefore take more time. Further, endorsements of export health
certificates of the same certificate category take different amounts of
time because import requirements differ for each importing country. On
average, when no tests or vaccinations are required, direct labor time
for endorsing export health certificates varies, by category, between
14 and 22 minutes, for example, endorsements for poultry take 18
minutes. On average, when verification of tests or vaccinations is
required, direct labor time for endorsing export health certificates
varies, based on the number of tests, between 45 and 65 minutes for the
first animal on the certificate.
After estimating the average direct labor time involved in
endorsing export health certificates, direct labor costs were
calculated. To calculate the direct labor costs, we used the actual
salary of each individual that provides the services and weighted these
costs according to the number of export health certificates endorsed at
each location to arrive at the average direct labor rate per hour,
$34.06. This includes salary and benefits.
The average number of minutes per endorsement is multiplied by the
average direct labor rate to arrive at the total direct labor cost in
each certificate category.
User fee calculations were based on the direct labor costs and a
pro rata share of support costs, agency overhead, and Departmental
charges. Costs were assigned directly to a service only when the cost
was directly related to providing that service. Where an expense was
attributable to several or all categories of service, it was pro-rated
among the categories based on historic direct labor staff hours. This
calculation provided the raw fee.
As explained in the proposal, we rounded the raw fees up to the
nearest quarter. We rounded them off to simplify collection and
accounting. We rounded our user fees up, rather than down, because if
we were to round down, even if only by pennies, the user fees would not
fully recover our costs. If there is a shortfall for a service
category, we cannot recover it by charging a higher user fee for
another service category.
We compared the resulting user fees and the revenue they generate
to the costs of these activities for reasonableness. Adjustments were
made for anticipated changes in volume, based on past changes and other
factors such as current market and economic conditions.
We put as much of our supporting data in the proposed rulemaking as
possible. However, it was not feasible to include all the materials
used to develop the user fees. Therefore, as stated in the proposed
rulemaking, we made it available for inspection at our headquarters in
Riverdale, MD.
Many of the comments related to the proposed increases in poultry
health certificates. Therefore, we have included an example of the
calculation for the user fee for endorsing export health certificates
for poultry. The average amount of time it takes to endorse an export
health certificate for poultry is 18 minutes, which can include any of
the direct labor activities listed above. Using the average direct
labor rate per hour of $34.06, the direct labor cost for 18 minutes is
$10.08. As described earlier, the following costs are the pro rata
share for endorsing export health certificates. Administrative support
costs are added at about $0.69 for each $1 of direct labor incurred,
adding $6.89. Agency overhead and departmental charges are added at
$2.74 and $1.08, respectively. The total cost is $20.79, which is
rounded up to the nearest quarter to $21.00. When factoring in all of
the costs involved in endorsing an export health certificate, the fees
are reasonable. When comparing the proposed user fees to the previous
user fees, which were too low, they appear high. However, we could not
continue to provide these services if we did not increase the user fees
to fully recover our costs. Therefore, we are making no changes based
on these comments.
Objections to User Fees for Endorsing Export Health Certificates
Many commenters objected in general terms to user fees for
endorsing export health certificates.
Export health certificates are required by the country importing
the animal or animal product; they are not required by APHIS, USDA, or
any other agency or organization within the Federal Government.
Therefore, we are unable to eliminate services and costs associated
with the endorsement of export health certificates. However, we do
attempt, whenever possible, to negotiate with foreign governments to
eliminate export health certificate requirements or make them less
onerous to U.S. exporters. We are continually negotiating with other
countries to
[[Page 20426]]
eliminate or minimize requirements. The success of our negotiations can
be seen in the following changes in other country's requirements.
Canadian test requirements for blue tongue tests on live cattle have
been liberalized. Chile has dropped test requirements for contagious
caprine pleuropneumonia tests on U.S. goats. Argentina has dropped test
requirements for contagious equine metritis test requirements for
horses. In addition, there are ongoing negotiations with Mexico to
eliminate their requirement that breeding swine be tested for porcine
respiratory and reproductive syndrome, and with Russia to sustain
markets for U.S. fresh and frozen poultry meat. We will continue to
work for improvements in these and other areas.
Small Business
Many commenters maintained the proposed APHIS user fees would be
detrimental to small businesses in general, or to specific industries,
such as manufacturers of medical diagnostic reagents. Other commenters
stated that paying the user fees would be a hardship, increase their
cost of doing business, or have other detrimental effects. Some
commenters proposed that we exempt certain industries or classes of
users from the proposed user fees or charge them reduced fees. Among
those mentioned were members of the poultry industry involved in the
National Poultry Improvement Plan.
We realize that the proposed user fees may increase the up-front
cost of doing business. APHIS sympathizes with these commenters and has
attempted to minimize the cost of services to keep the user fees at the
lowest possible level for all users.
However, when Congress authorized APHIS to prescribe and collect
user fees to recover the costs of import- and export-related services
for animals, birds, and animal products, it specifically reduced APHIS'
appropriations by the estimated amount of providing such services.
Currently, APHIS is not appropriated funds to cover the cost of
providing these services. Therefore, APHIS cannot exempt certain
classes of users, such as small businesses, from the user fees, and
cannot charge user fees which recover less than the full cost of
providing the service without using funds appropriated for other
purposes. We are therefore not making any changes based on these
comments.
Services Provided
Nine commenters addressed the services for which APHIS charges user
fees to endorse export health certificates. Several commenters raised
more than one issue; specific issues follow.
Five commenters took exception to the perceived duplication of
services provided by local veterinarians and APHIS veterinarians.
Even though local veterinarians may be federally accredited,
importing countries require an APHIS veterinarian to endorse export
health certificates.
Several commenters objected to user fees for services required by
the regulations, as opposed to voluntary services.
Our authority to collect user fees does not distinguish between
mandatory and voluntary services. Further, we do not agree with the
commenters' basic proposition that users do not ask for APHIS services
if they are complying with a regulatory requirement. As stated in
Sec. 130.20 of the regulations, ``An export certificate may need to be
endorsed for an animal being exported from the United States if the
country to which the animal is being shipped requires one. APHIS
endorses export health certificates as a service.'' No one is required
to conduct any business or endeavor which is regulated by APHIS.
However, anyone who does so must comply with APHIS requirements. In
this manner, all users ask for service from APHIS.
APHIS services are provided to enhance U.S. agriculture. APHIS
services concerning exportation of animals and animal products are
designed either to provide services to exporters which they need in
order to meet requirements of the importing country, or to help ensure
that no infected animals or animal products are exported from the
United States. This service helps protect the individual exporter and
helps foreign markets for American animals and animal products.
Many commenters asserted that most of the work is performed by the
exporters and local veterinarians, and that APHIS only signs the forms.
Even though in some instances it may appear to the person obtaining
the endorsement for the export health certificate that the only step
APHIS does is sign the certificates, there are many other steps that
may be involved. As explained earlier in response to another comment,
direct labor activities may include the following: Telephone time for
providing information about the export health certification process,
mailing information to customers, protocol research, review of
paperwork such as health certificates, verification of laboratory test
results, confirmation that the importing country's requirements have
been met, paperwork completeness review, certification statements
review, endorsement/signing, placing an official seal on documents if
needed, and completing APHIS paperwork related to the endorsement. Many
of the activities listed above must be performed to make it possible
for APHIS employees to endorse the export health certificates.
Multiple Versus Single Export Health Certificates
Three commenters were concerned about whether we would charge for
multiple or single export health certificates in situations where
multiple export health certificates are required for a single
exportation or where multiple similar export health certificates are
required in a limited time. Examples included egg shipments to one
corporate agent who then redistributes the eggs to various customers;
containers of export product which require up to five copies of the
same export health certificate, each requiring an original signature;
and hundreds of export health certificates per month where the
commenter suggested that economies of scale and time management could
be realized if numerous certificates are signed at the same time.
Different countries have different requirements as to the number
and kinds of tests that are required and the number of animals, birds,
or animal products which can be covered by one export health
certificate. As a result, the amount of time required to endorse export
health certificates varies. Since our goal is to fully recover our
costs, we charge the user fee that equals the work required for an
export health certificate going from one consignee to one consignor. If
the APHIS employee responsible for endorsing the export health
certificate determines that the animals, birds, or animal products are
part of one consignment, originating from one farm or ranch and
destined for one location, the user is charged as though all of the
animals, birds, or animal products are on one export health
certificate. If this is not the case, more work may be required for the
endorsement, and a separate fee is assessed for each endorsement. For
occasions where shipments being exported from the same consignor to the
same consignee are presented a day apart, a separate fee is charged for
each endorsement.
Nonendorsed Export Health Certificates
Seven commenters opposed the new user fee in Sec. 130.20(d) for
nonendorsed export health certificates. There
[[Page 20427]]
appeared to be confusion about the reasons for charging the user fee
for nonendorsed export health certificates and when the user fee would
be charged.
To clarify our intentions, we are not charging $16.50 for blank
export health certificates. Rather, the user fee will be assessed after
the APHIS veterinarian has received the export health certificate for
endorsement, has begun to review it, and subsequently finds a problem
which prevents him or her from endorsing the export health certificate
as presented. At this point the APHIS veterinarian will return the
nonendorsed export health certificate to the exporter for corrective
action. Since work has been performed, we must charge the user fee to
recover our costs for the services. To clarify this, we are revising
the wording proposed in Sec. 130.20(d) to specify that the charge
applies to export health certificates presented for endorsement which
were reviewed, but not endorsed.
Nonslaughter Horses to Canada
One commenter raised concerns about the movement of race horses to
Canada. The commenter maintained that export health certificates and
inspections should not be required for race horses, and stated that
Canadian race tracks are dropping the Coggins test requirement.
As explained earlier, we are continually negotiating with Canada
and other countries to eliminate or minimize their import requirements.
The movement of race horses is one of the items under discussion. If
Canadian requirements change, or if a service is no longer required
because Canada has changed its import requirements, any corresponding
fee changes will be published in the Federal Register for public
comment.
Slaughter Animals to Canada or Mexico
One commenter questioned whether, for slaughter animals going to
Canada or Mexico, we will charge the flat rate user fee in
Sec. 130.20(a) or the scaled user fee in Sec. 130.20(b)(1) which is
based on the number of tests or vaccinations required for the animals
listed on the export health certificate. This question was raised
because all cattle, including slaughter cattle, are required to be
tested for tuberculosis and brucellosis prior to exportation.
To fully recover our costs, the user fees in Sec. 130.20(b)(1)
apply whenever tests or vaccinations are required. Costs associated
with endorsing export health certificates which cover individually
identified animals requiring tests or vaccinations are higher than
those which cover animals as a group which do not require tests or
vaccinations. This is because APHIS personnel must verify the results
of tests or vaccinations. The greater the number of animals, and the
larger the number of tests or vaccinations, the more time consuming it
is for APHIS personnel to perform the verifications necessary to
endorse export health certificates. To clarify which fee is charged, we
are revising the text in Sec. 130.20(a) and (b)(1) to indicate that
Sec. 130.20(b)(1) applies when tests or vaccinations are required and
Sec. 130.20(a) applies when tests and vaccinations are not required.
Reconsider User Fee Increases
Three commenters suggested that we reconsider the user fee
increases for export health certificates and get more input from
industry.
By publishing the proposed rule and requesting comments for 60 days
we believe that we have provided industry with ample opportunity to
provide input into the changes in the export health certificate user
fees. Therefore, we are making no changes based on these comments.
APHIS veterinarian
One commenter questioned what would happen when an export health
certificate for an animal product is not endorsed by an APHIS
veterinarian, but by another APHIS employee.
Other designated APHIS employees may endorse export health
certificates for animal products. Therefore, in Sec. 130.20(d), we are
changing the term ``APHIS veterinarian'' to ``designated APHIS
employee''.
14. Payment of User Fees (Sec. 130.50)
One commenter suggested that we charge user fees in whole dollar
amounts to eliminate the need for APHIS offices to keep and make
change.
APHIS offices should rarely need to accept cash, as we also accept
credit cards and checks in payment for user fees. The regulations
explain that a list of the APHIS offices which accept each form of
payment is available from APHIS headquarters in Riverdale, MD. The
slight inconvenience to APHIS created by accepting change is more than
offset by convenience to the public. Therefore, we are making no
changes based on this comment.
Therefore, based on the rationale set forth in the proposed rule
and in this document, we are adopting the provisions of the proposal as
a final rule, with the changes discussed in this document.
Executive Order 12866 and Regulatory Flexibility Act
This rule has been reviewed under Executive Order 12866. The rule
has been determined to be significant for the purposes of Executive
Order 12866 and, therefore, has been reviewed by the Office of
Management and Budget.
In accordance with 5 U.S.C. 601 et seq., we have performed a Final
Regulatory Flexibility Analysis, set forth below, regarding the
economic effect of this rule on small entities.
Need and Objective of This Rule
In accordance with the Farm Bill of 1990, the Secretary of
Agriculture is authorized to prescribe and collect fees to reimburse
the Secretary for the cost of carrying out the provisions of the
Federal animal quarantine laws that relate to the importation, entry,
and exportation of animals, articles, or means of conveyance (section
2509(c)(1) of the 1990 Farm Bill). The Secretary of Agriculture is also
authorized, under section 2509(c)(2) of the Farm Bill, to prescribe and
collect fees to recover the costs of carrying out certain veterinary
diagnostics services. As a result of this authority, Congress no longer
allocates funds to APHIS for these import- and export-related services
and veterinary diagnostics services. Therefore, we established user
fees which were intended to recover the full cost of providing these
services. The cost of providing these services includes direct labor
costs and a pro rata share of administrative support, agency overhead,
and Departmental charges.
When we established our original user fees on February 9, 1992, we
used the best estimates we had available. At that time, our accounting
system did not track costs related to these services separately from
other appropriation funded activities. When a service has been provided
to the users free of charge for years, it is difficult to predict the
economic decisions people will make regarding those services after a
user fee is established. Therefore, we had to estimate the costs and
the demand for those services without historical data for import- and
export-related services.
Since we established these user fees, our accounting system has
tracked the costs associated with user fees by imports and exports and
for veterinary diagnostics. Therefore, we now have actual cost and
usage data for our calculations. This has also improved the accuracy of
our estimates for other user fees. The original user fees established
on February 2, 1992, were primarily for export-related services. On
September 1, 1993, we established user fees for veterinary diagnostics
services. On
[[Page 20428]]
January 21, 1994, we established additional user fees primarily for
import-related services. Annual reviews of our user fees, based on our
accounting data and experience with providing these services, show that
while many of the estimates resulted in accurate user fees which
require only moderate increases, some of our original user fees were
significantly lower than the cost of providing the services. Because
these user fees were set too low, we have been running a deficit to
provide the requested services. Therefore, these user fees must be
increased to recover the costs of providing requested services.
Specifically, we reviewed our records of user fees collected during
fiscal years (FYs) 1992 through 1995. The original user fees
established on February 9, 1992, are based on FY 90 costs. In the 5
years since then, there has been an overall increase in all costs of
providing services, due to inflation and changes in general economic
conditions. Additionally, we underestimated personnel costs when we set
the user fees. For example, in addition to anticipated Federal pay
increases (4.2 percent in FY 92 and 3.7 percent in FY 93), in FY 94,
there were locality pay and cost of living increases of 3.09 to 8
percent for employees stationed in different parts of the United
States. We also underestimated support costs, such as clerical support,
office rent, telephone, etc., in setting our current user fees. As a
result, the costs of endorsing export health certificates, for example,
for which we established user fees on February 9, 1992, were
drastically underestimated. In addition, the user fees established on
January 21, 1994, lacked the pay raises and increased costs since they
were calculated in 1993 based on FY 92 costs.
As a result of general cost increases and the inherent difficulty
in setting new user fees, as discussed above, we did not collect enough
money in user fees during FYs 1992 through 1995 to recover the costs of
providing the services for which we charged user fees. In fact, for
each of those fiscal years, we incurred a deficit of over $1 million.
As our user fees are intended to recover full cost, it is apparent that
our user fees are too low and must be raised to reflect changes in
actual costs and demand for services.
Changes to the Regulations
Consequently, this rule updates certain user fees related to
import- and export-related inspection and certification, animal
quarantine, and veterinary diagnostics. This rule changes user fees
that are currently charged for eight broad categories of services.
These services include the inspection, certification, or authorization
of: (1) live animal imports at animal import centers; (2) live animal
imports at the Mexican border; (3) live animal imports at the Canadian
border, airports, and ocean ports; (4) other import and inspection
services for the importation of live animals and animal products; (5)
veterinary diagnostics; (6) the endorsement of export health
certificates; (7) facility rentals at APHIS' animal import centers and
(8) import and export hourly user fees. New user fees are also being
established for the exclusive use of additional space at the Animal
Import Center in Newburgh, NY, for the endorsement of export health
certificates for animal products, and for pet birds quarantined in an
APHIS owned or supervised quarantine facility. In addition, we are
changing our method of charging hourly user fees when import- and
export-related services are performed outside of an employee's normal
tour of duty.
Overall Impact of Changes
Table 1 summarizes the estimated changes in user fees that are
necessary to fully recover costs. This rule will result in a net
increase in agency collections of about $3 million, from $8 million to
$11 million. Approximately $1.1 million of this increase represents new
user fees and $2 million is attributed to changes in current
collections (revised and premium user fees). These changes will shift
the burden from taxpayers to the importers and exporters who use these
APHIS services. Additional tables providing details of the user fee
changes summarized in Table 1 are available for inspection at USDA,
room 1141, South Building, 14th Street and Independence Avenue SW.,
Washington, DC, between 8 a.m. and 4:30 p.m., Monday through Friday,
except holidays. Persons wishing to inspect these detailed tables are
requested to call ahead on (202) 690-2817 to facilitate entry into the
reading room.
Table 1.--Summary of Estimated Collections for Import- and Export-Related Services \1\
----------------------------------------------------------------------------------------------------------------
Category Current Projected Change
----------------------------------------------------------------------------------------------------------------
New User Fees:
Exclusive use of space at the Newburgh, NY Animal Import
Center (9 CFR Sec. 130.3)................................. .............. $157,109 $157,109
Quarantine for pet birds (9 CFR Sec. 130.10)............... .............. 265,245 265,245
Endorsement of export health certificates for animal
products (9 CFR Sec. 130.20).............................. .............. 645,000 645,000
-----------------------------------------------
Total New User Fees..................................... .............. 1,067,354 1,067,354
-----------------------------------------------
Revised User Fees:
Animal import centers (9 CFR Sec. 130.2)................... 2,168,468 2,461,334 292,865
APHIS animal import centers and hourly user fees (9 CFR
Secs. 130.3, 130.5, 130.9, 130.10, and 130.21)............ 648,318 740,942 92,624
Imports at the Mexican border (9 CFR Sec. 130.6)........... 1,047,184 1,214,532 167,349
Imports at other ports of entry (9 CFR Sec. 130.7)......... 817,862 834,251 16,388
Import and inspection services (9 CFR Sec. 130.8).......... 944,087 970,072 25,986
Veterinary diagnostics (9 CFR Sec. 130.16)................. 450,118 429,076 (21,042)
Endorsements of export health certificates (9 CFR Sec.
130.20).................................................... 798,260 2,195,111 1,396,851
-----------------------------------------------
Total Revised User Fees................................. 6,874,296 8,845,316 1,971,020
-----------------------------------------------
Premium User Fees (9 CFR Secs. 130.5, 130.9, and 130.21)....... 990,900 1,033,319 42,419
=================
Total Revised Collections (Revised and Premium User
Fees).................................................. 7,865,196 9,878,635 2,013,439
=================
[[Page 20429]]
Projected Total (New and Revised)....................... 7,865,196 10,945,989 3,080,793
----------------------------------------------------------------------------------------------------------------
\1\ Projections based on average annual volume estimates provided by the Financial Systems and Services Branch,
Budget and Accounting Division, Management and Budget, APHIS, USDA. NOTE: Column and row totals may not be
exact due to rounding.
Summary of Comments, Assessment of Issues, and Resulting Changes
Due to the nature of this rule, most of the comments we received on
the proposed rule focused on economic issues; several took exception to
the results of our economic analysis. The comments raised concerns
about potential inequitable charges for permanent and temporary
privately owned import quarantine facilities (Sec. 130.4 and
Sec. 130.5, respectively), impacts on small entities, increases in user
fees for the endorsement of export health certificates, and impact on
international trade. As a result of the issues raised about inequitable
charges, we combined the user fee regulations for permanent and
temporary facilities under Sec. 130.5 and removed Sec. 130.4 from the
regulations. This will result in lower charges for economies of scale
where there are multiple animals in a single shipment than those
previously assessed under Sec. 130.4 for permanent facilities.
Assessments of the other issues raised are provided in the more
detailed economic analysis below.
Impact on Small Entities
User fee revisions included in this rule could affect some
importers and exporters of live animals, importers and exporters of
animal byproducts, and firms that seek APHIS' veterinary diagnostic
services. We received comments from importers and exporters, many of
whom are small entities. The Small Business Administration's definition
of a small entity involved in these activities is one whose total sales
is less than $5 million annually. The number of entities who are
importing and exporting live animals and would qualify as a small
entity under this definition cannot be determined. However, except
possibly for those entities who deal exclusively in more valuable
animals, such as breeding or registered animals, data from the 1995
Bureau of the Census indicates that the majority of agricultural
entities who deal in less valuable animals, such as feeding or
slaughter animals, can be considered small. While there is a wide range
in the sizes of entities who use our import- and export-related
services, our experience shows that as many as 50 percent may be
considered large.
To the extent that changes in user fees will impact operational
costs or profits, any entity who utilizes APHIS's services and is
subject to user fees will be impacted by this rule. The degree of the
impact depends on the entity's market power, or the ability to which
cost increases can be either absorbed or passed on to its buyers.
Without information on either profit margins and operational expenses
of the affected entities,2 or the supply responsiveness of the
affected industry,3 the impacts cannot be precisely predicted.
However, given the amount of the user fee changes (and new user fees)
relative to the value of the imported or exported animals and animal
products, some conclusions on overall impacts to domestic and
international commerce are drawn below.
---------------------------------------------------------------------------
\2\ Information on profits from sales by small entities is
proprietary in nature and was not available to APHIS for this
analysis.
\3\ The measurement of supply responsiveness would provide
information on the likely impact on an entity's production due to
changes in operating costs.
---------------------------------------------------------------------------
Exports
Many comments addressed the impact these user fee increases will
have on exports. Most of these comments objected to increases in the
user fees for the endorsement of export health certificates. Many of
the comments we received focused on the impact on entities in the
poultry and horse industries.
Most of the commenters stated that the increase in the user fee for
the endorsement of export health certificates for poultry and hatching
eggs is too high. As explained earlier, these user fees were based on
FY 90 costs and low estimates of personnel costs. The user fees have
not been increased in 5 years, and the original user fees were
drastically underestimated.
Breeding chicks and hatching eggs, while worth only fractions of a
dollar individually, are generally exported in batches of up to
hundreds of thousands; the total value of these shipments could exceed
$10,000. As shown in Table 2, the user fee for the endorsement of
export health certificates for poultry and eggs is $21.00 (an increase
of $19.00 from the original $2.00 user fee). The user fee is less than
0.5 percent of the estimated value of a shipment. Therefore, while the
increase in the user fee is significant, the user fee is still small
relative to the total value of the shipments. Table 2: Projected User
Fee Collections for the Endorsement of Export Health Certificates (9
CFR Sec. 130.20).4
---------------------------------------------------------------------------
\4\ Projections based on average annual volume estimates
provided by the Financial Systems and Services Branch, Budget and
Accounting Division, Management and Budget, APHIS, USDA. Note:
Column and row totals may not be exact due to rounding.
[[Page 20430]]
----------------------------------------------------------------------------------------------------------------
User fee Collections
Category Annual ----------------------------------------------------------------
volume Current New Change Current Projected
----------------------------------------------------------------------------------------------------------------
Per Certificate User Fees:
Slaughter Animals to Canada or
Mexico....................... 4,811 $10.00 $24.50 $14.50 $48,110 $117,870
Non-Slaughter Horses to Canada 27,275 10.00 26.25 16.25 272,750 715,969
Poultry....................... 7,037 2.00 21.00 19.00 14,074 147,777
Hatching Eggs................. 7,036 2.00 21.00 19.00 14,072 147,756
Other:
Endorsements.................. 20,748 4.00 16.50 12.50 82,992 342,342
Per Head User Fees:
Export Animal, 1-2 tests...... 2,656 38.00 52.50 14.50 100,928 139,440
Each additional animal.... 35,235 1.00 3.00 2.00 35,235 105,705
Export Animal, 3-6 tests...... 3,950 41.50 64.75 23.25 163,925 255,763
Each additional animal.... 34,905 1.25 5.00 3.754 3,631 174,525
Export Animal, 7 + tests...... 421 44.00 75.75 31.75 18,524 31,891
Each additional animal.... 2,679 1.50 6.00 4.50 4,019 16,074
-----------------------------------------------------------------------------
Projected totals...... ........... ........... ........... ........... 798,260 2,195,111
----------------------------------------------------------------------------------------------------------------
Since many of the comments related to the proposed increases in
user fees for the endorsement of export health certificates concerned
poultry and egg exports, we will show how this user fee is calculated
by using, as an example, the endorsement of an export health
certificate for poultry. The calculation for the user fees for
endorsing other export health certificates varies by the amount of
direct labor hours required to provide the endorsement services. The
average amount of time it takes to endorse an export health certificate
for poultry is 18 minutes. The direct labor time includes phone time,
paperwork review time, and endorsement time. Using the average direct
labor cost per hour of $34.06, the direct labor cost for 18 minutes is
$10.08. As described earlier, the following costs are the pro rata
share for endorsing export health certificates.
Administrative support costs are added at about $0.69 for each
$1.00 of direct labor incurred, adding $6.89. Administrative support
costs include local clerical and administrative activities; indirect
labor hours (supervision of personnel and time spent doing work that is
not directly connected with the service but which is nonetheless
necessary, such as repairing equipment); travel and transportation for
personnel; supplies, equipment, and other necessary items; training;
general supplies for offices, washrooms, cleaning, etc.; contractual
services (such as guard service, maintenance, trash pickup, etc.);
grounds maintenance; chemicals and glassware; and utilities (such as
water, telephone, electricity, natural and propane gas, heating and
diesel oil). Some administrative support items may be contractual or
not, depending on local circumstances. For example, trash pickup may be
provided as a contractual service or a utility. However, the costs are
all administrative support.
In addition, Agency overhead and departmental charges are added at
$2.74 and $1.08, respectively. The total cost is $20.79, which is
rounded up to the nearest quarter to $21.00. When factoring in all of
the costs involved in endorsing an export health certificates, the user
fees are reasonable. When comparing the proposed user fees to the
previous user fees, which were based on FY 90 costs and were too low,
they appear high. However, we could not continue to provide these
services if we did not increase the user fees to fully recover our
costs.
The value of a non-slaughter horse could range between $1,000 and
$50,000 and more. As shown in Table 2, the user fee for non-slaughter
horses to Canada is $26.25 (an increase of $16.25 from the original
$10.00 user fee). The user fee is less than 3 percent of the lower
value for the non-slaughter horse. Therefore, the user fee is small
relative to the total value of the horse.
Many commenters stated that the user fees for the endorsement of
export health certificates that require the verification of tests are
too high. As shown in Table 2, for any animal, endorsements requiring
the verification of 1 or 2 tests increased by $14.50 per endorsement
(from $38.00 to $52.50). The largest increase of $31.75 per endorsement
(from $44.00 to $75.75) relates to the endorsement of export health
certificates that require verification of 7 or more tests required by
the importing country. Of the 80,277 certificates endorsed in FY 94,
only 421 certificates (or 0.5 percent) were issued that required the
verification of 7 or more tests. These certificates covered 3,092
animals for an average charge of $7.29 per animal ($44.00 for the first
animal and $1.50 for additional animals on a certificate). The new user
fees raise this average to $15.50 per animal ($75.75 for the first
animal and $6.00 for additional animals on a certificate), or a
difference of $8.21 per animal. Certificates that are issued in this
category are endorsed largely for the export of breeding or registered
animals whose worth could be over $2,000 per animal. It is therefore
expected that these user fee increases will not have a significant
impact on exporters, given that the amount of the increases is small in
comparison to the value of the exported animals.
Impact on International Trade
Several commenters suggested that the increases in user fees could
result in a decrease in international trade. Most of the commenters
specified trade in poultry, horses, and cattle to Canada. As stated
above, the increases in the user fees are small in relation to the
value of the exported animals. While it follows that some businesses
will feel the impact of these increases, overall, the revised user fees
are not expected to impede commerce and international trade.
Although some countries do not currently charge for import- and
export-related services, user fees for these services are being adopted
by more and more countries. In fact, as of May 8, 1995, Canada charges
user fees for certain import- and export-related services (see May 3,
1995, Canada Gazette Part II, Vol. 129, No. 9, SOR/DORS/95-198). In
addition, further supports have been eliminated. Therefore, we do not
believe that U.S. exporters are at a competitive disadvantage compared
with exporters in other countries.
[[Page 20431]]
Imports
While most comments addressed exports, several objected to the
increases in user fees for import-related services. For import-related
services for animals at all ports of entry, including Canadian and
Mexican borders, and animal import centers, increases from the previous
user fees range from $0.25 to $21.00. Except for the increases of
$12.75 to $21.00 for import services for equines at animal import
centers, the other increases are all $5.50 or less, while the majority
of these user fee increases are less than $1.00. These changes
represent modest increases and are a small fraction of the typical cost
of purchasing and importing a breeding grade animal into the United
States, which ranges between $1,500 and $5,000 per head. Purchase and
import costs for feeder and slaughter animals are often significantly
lower per animal, but can easily exceed $1,500 per shipment depending
on the number and type of animals in the shipment.
The increase in user fees for other import services related to
animal products and byproducts range from $0.50 for an application for
a permit renewal, to $10.25 for the inspection of an approved
establishment. Because the user fees charged in this category of
service are based on either a per load, inspection, application, or
certification basis, the amount of increase is small in comparison to
the total value of the animal products and byproducts for which the
services are required. The majority of the increases are $1.50 or less.
The $1.50 increase per permit for the importation of germ plasm (from
$38.00 to $39.50), for instance, is not expected to cause a significant
economic burden to importers, given that the cost of importing semen
could be over $100,000 per permit when imported from countries with
foot-and-mouth disease. Although the breakdown of entity sizes is
unknown, as stated above, the revised user fees are not expected to
have a significant impact on either large or small importers of live
animals and animal products.
Shift From Reimbursable Overtime to Premium User Fees
This rule also changes the way in which hourly user fees for
import- and export-related services conducted outside an employee's
normal tour of duty will be charged. While revising our user fees, we
took many factors into account, including public confusion about the
way we charged for services provided during overtime. As a result, we
changed the method of charging hourly user fees for import- and export-
related services provided outside of an employee's normal tour of duty.
Now, users of these services, previously charged the hourly user fee
plus reimbursable overtime, will be charged the single new premium user
fee. This premium user fee reflects both changes in costs and a change
in the structure of the user fee. The intent of this change is to avoid
any confusion and the perception of double charging for services. The
impact is to lower the average hourly user fees for import- and export-
related services performed outside of an employee's normal tour of
duty.
The $1 million projected collection for this category represents a
modest increase, approximately $40,000, to APHIS collections. All of
the projected calculations are not considered new user fees or new
collections for APHIS for the following reasons. In FY 95, we collected
$990,900 for import- and export-related services that involved a
combination of both hourly user fees and reimbursable overtime. Of
this, $398,425 was collected at the $50.00 hourly user fee, and
$592,475 was collected at the reimbursable overtime rates specified in
9 CFR 97 (for example, $37.84 for holidays and overtime other than on
Sundays). As explained below, a portion of the $398,425 was for
services that began during the regular tour of duty and for which the
hourly user fee will still be charged.
The hourly user fee charges ($398,425) include the costs for
services which may have begun during the regular tour of duty but were
completed on overtime in addition to the hourly user fee charge for the
services provided during overtime. Our accounting system tracks user
fees and reimbursable overtime separately. While we can identify total
hourly user fees and total reimbursable overtime hours performed in
conjunction, we cannot specifically identify the hours of services
which began on regular time and continued into overtime.
Next, reflecting the change in costs, we estimated FY 95
collections using the increased FY 96 hourly rate of $56.00 plus
reimbursable overtime. With this increase in the hourly user fee, the
projected FY 96 collections would have been $1,040,298 ($447,823 at
$56.00 per hour for hourly user fees and $592,475 at the reimbursable
overtime rates as described above).
Finally, we changed the method of charging user fees for hourly
services performed during overtime to a single premium user fee. To
calculate the projected FY 96 collections for the premium user fee
($1,033,319), we used the total FY 95 hours multiplied by the average
premium user fee (6 out of 7 days at $65.00 plus 1 out of 7 days at
$74.00, the sum divided by 7 days in a week). Our historical accounting
data for reimbursable overtime confirms this method resulted in a
reasonable split between Sunday and other overtime.
These calculations show an estimated overall increase of
approximately $40,000. While this is a modest increase over the
previous charges for services performed outside employees' normal tour
of duty, this is a decrease of approximately $7,000 from the increases
which would have been incurred under the old method. Therefore,
entities should realize a long-term economic benefit from the lower
increase.
Based on the earlier discussion of the regular time, which is
included in the estimates for reimbursable overtime, it follows that
the premium user fee, which was estimated for the same number of hours
as the reimbursable overtime plus hourly user fee, is an overestimate
of charges, as some of these hours will remain at $56.00 per hour.
Therefore, we anticipate that the increase will be lower than our
estimate shows.
Summary
In summary, while it follows that, if the user fees cannot be
passed on, the profit margins of some entities may decline as user fees
for endorsing export health certificates are increased. However, the
revised user fees represent a small fraction of the value of the
imported and exported animals and are not generally expected to reduce
profits or impede exports. Indeed, the full burden of the user fee
increases are not likely to be borne entirely by the directly affected
entities, as some of the cost increases are expected to be passed on to
the purchasers of these exported animals.
Alternatives
One alternative to this rule would be to take no action. Another
alternative to this rule would be to establish a different user fee
structure for small businesses. We do not consider taking no action a
reasonable alternative, because we would not recover the full cost of
providing import- and export- related services and would continue to
incur annual deficits of over $1 million. We also do not consider
establishing a different user fee structure for small businesses a
viable option. As stated above, Congress does not appropriate funds to
APHIS for these services. Therefore, APHIS cannot exempt certain
classes of users, such as small businesses, from the user fees, and
cannot charge user fees that recover less
[[Page 20432]]
than the full cost of providing the service.
Another alternative to this rule would be to spread the increased
costs over all of the user fees, so no single user fee would increase
significantly. Our user fees are calculated to recover the costs of the
service for which each user fee is charged. To spread the increases
would mean that some entities would subsidize others. The intent of
these user fees is to shift the burden of the cost of these services
from the general taxpayer to the entity receiving the service.
Therefore, APHIS cannot spread the increases evenly over all of the
user fees.
Executive Order 12778
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule (1) Preempts all State and local laws and
regulations that are inconsistent with this rule; (2) has no
retroactive effect; and (3) does not require administrative proceedings
before parties may file suit in court challenging this rule.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.), the information collection or recordkeeping requirements
included in this rule have been approved by the Office of Management
and Budget (OMB), and there are no new requirements. The assigned OMB
control numbers are 0579-0015, 0579-0040, 0579-0055, and 0579-0094.
List of Subjects in 9 CFR Part 130
Animals, Birds, Diagnostic reagents, Exports, Imports, Poultry,
Quarantine, Reporting and recordkeeping requirements, Tests.
Accordingly, 9 CFR part 130 is amended as follows:
PART 130--USER FEES
1. The authority citation for part 130 is revised to read as
follows:
Authority: 5 U.S.C. 5542; 7 U.S.C. 1622; 19 U.S.C. 1306; 21
U.S.C. 102-105, 111, 114, 114a, 134a, 134b, 134c, 134d, 134f, 135,
136, and 136a; 7 CFR 2.22, 2.80, and 371.2(d).
2. In Sec. 130.1, the definitions for Germplasm and Pet bird are
removed; the definition for Load is revised; and definitions for Germ
plasm, Pet birds, Test, and United States are added, in alphabetical
order, to read as follows:
Sec. 130.1 Definitions.
* * * * *
Germ plasm. Semen, embryos, or ova.
* * * * *
Load. Those animals, birds, or animal germ plasm, presented for
importation into the United States in a single shipment, that originate
from one address, are destined for one address, and require one entry
permit or authorization.
* * * * *
Pet birds. Birds, except ratites, which are imported for the
personal pleasure of their individual owners and are not intended for
resale.
* * * * *
Test. A single analysis performed on a single specimen from an
animal, animal product, commercial product, or animal feed.
United States. The several States of the United States, the
District of Columbia, Guam, the Commonwealth of the Northern Mariana
Islands, the Commonwealth of Puerto Rico, the Virgin Islands of the
United States, and all other territories and possessions of the United
States.
* * * * *
3. Section 130.2 is amended as follows:
a. By revising the section heading and in paragraph (a), the table,
to read as set forth below.
b. By adding at the end of the section the OMB control number as
set forth below.
Sec. 130.2 User fees for individual animals and certain birds
quarantined in APHIS Animal Import Centers.
(a) * * *
------------------------------------------------------------------------
Animal or bird Daily
------------------------------------------------------------------------
Birds (including zoo birds, but excluding ratites and pet
birds imported in accordance with part 92 of this
subchapter):
0-250 grams.............................................. $1.00
251-1,000 grams.......................................... 3.25
Over 1,000 grams, and any bird in nonstandard housing or
receiving nonstandard care and handling................. 7.50
Ratites:
Chicks (less than 3 months of age)....................... 5.75
Juveniles (3 months through 10 months of age)............ 8.00
Adults (11 months of age and older)...................... 16.25
Poultry (including zoo poultry):
Doves, pigeons, quail.................................... 2.00
Chickens, ducks, grouse, guinea fowl, partridge, pea
fowl, pheasants......................................... 3.50
Game cocks, geese, swans, turkeys, any poultry housed in
nonstandard housing or receiving nonstandard care and
handling................................................ 8.25
Equines (including zoo equines, but excluding miniature
horses):
1st through 3rd day...................................... 149.50
4th through 7th day...................................... 108.25
8th and later days....................................... 91.75
Miniature horses............................................. 40.25
Zoo animals (except equines, birds, and poultry)............. 32.25
Domestic animals:
Camels, cattle, bison, buffalo........................... 56.50
All others............................................... 15.00
------------------------------------------------------------------------
* * * * *
(Approved by the Office of Management and Budget under control
number 0579-0094.)
4. Section 130.3 is amended as follows:
a. In paragraph (a)(1), by revising the table to read as set forth
below.
b. By revising paragraph (c)(3) to read as set forth below.
c. By revising the OMB control numbers at the end of the section as
set forth below.
Sec. 130.3 User fees for exclusive use of space at APHIS Animal Import
Centers.
(a)(1) * * *
[[Page 20433]]
------------------------------------------------------------------------
Monthly user
Animal import center Space available fee
------------------------------------------------------------------------
Miami, FL:
South Wing..................... 6,952 sq. ft........... $30,285.00
(645.9 sq. m.).........
North Wing..................... 6,545 sq. ft........... 29,377.00
(608.1 sq. m.).........
Newburgh, NY:
Space A........................ 5,904 sq. ft........... 47,609.00
(548.5 sq. m.).........
Space B........................ 9,742 sq. ft........... 78,555.00
(905 sq. m.)
------------------------------------------------------------------------
* * * * *
(c) * * *
(3) If the importer chooses to pay for additional services on an
hourly basis, the user fees for each employee required to perform the
service are:
(i) $56.00 per hour;
(ii) $14.00 per quarter-hour;
(iii) With a minimum of $16.50.
* * * * *
(Approved by the Office of Management and Budget under control
numbers 0579-0040 and 0579-0094.)
Sec. 130.4 [Removed and reserved]
5. Section 130.4 is removed and reserved.
6. Section 130.5 is amended as follows:
a. The section heading, is revised to read as set forth below.
b. In paragraph (a), before the word ``temporary'', by adding the
words ``permanent or''.
c. In paragraph (b)(1), by removing ``$50'' and adding ``$56'' in
its place.
d. In paragraph (b)(2), by removing ``$12.50'' and adding
``$14.00'' in its place.
e. In paragraph (b)(3), by removing ``$16.00'' and adding
``$16.50'' in its place.
f. By adding a new paragraph (c) to read as set forth below.
g. By adding at the end of the section the OMB control number as
set forth below.
Sec. 130.5 User fees for services at privately operated permanent and
temporary import-quarantine facilities.
* * * * *
(c) If a service must be conducted on a Sunday or holiday or at any
other time outside the normal tour of duty of the employee, then the
premium user fee rate, as provided for in 9 CFR part 97, in lieu of the
user fee listed in paragraph (b) of this section, must be paid for each
employee required to perform each service:
(1) $65.00 per hour for weekdays and holidays;
(2) $16.25 per quarter-hour for weekdays and holidays;
(3) $74.00 per hour for Sundays;
(4) $18.50 per quarter-hour for Sundays;
(5) With a minimum of $16.50.
(Approved by the Office of Management and Budget under control
number 0579-0094.)
7. Section 130.6 is amended as follows:
a. In paragraph (a), by removing ``$16.00'' and adding ``$16.50''
in its place.
b. In paragraph (a), by removing the phrase ``live animals imported
into or entering the United States'' and adding ``live animals
presented for importation into or entry into the United States'' in its
place.
c. In paragraph (a), by revising the table to read as set forth
below.
Sec. 130.6 User fees for import or entry services for live animals at
land border ports along the United States-Mexico border.
(a) * * *
------------------------------------------------------------------------
User
fee
Type of live animal (per
head)
------------------------------------------------------------------------
Feeder......................................................... $1.75
Slaughter...................................................... 2.50
Horses, other than slaughter................................... 29.25
In-bond or in transit.......................................... 3.75
Any ruminants not covered above................................ 6.00
------------------------------------------------------------------------
* * * * *
8. Section 130.7 is amended as follows:
a. In paragraph (a), by removing ``$16.00'' and adding ``$16.50''
in its place.
b. In paragraph (a), by removing the phrase ``live animals imported
into or entering the United States'' and adding ``live animals
presented for importation into or entry into the United States'' in its
place.
c. In paragraph (a), by revising the table to read as set forth
below:
Sec. 130.7 User fees for import or entry services for live animals at
all other ports of entry.
(a) * * *
------------------------------------------------------------------------
Type of live animal User fee
------------------------------------------------------------------------
Animals being imported into the United
States:
Horses, other than slaughter and in transit. $19.00 per head.
Breeding animals (Grade animals, except ..........................
horses):
Swine................................... 0.50 per head.
Sheep and goats........................ 0.50 per head.
All others.............................. 2.25 per head.
Registered animals, all types............... 4.00 per head.
Feeder animals: ..........................
Cattle (not including calves)........... 1.00 per head.
Swine................................... 0.25 per head.
Sheep and calves........................ 0.25 per head.
Slaughter animals, all types................ 16.50 per load.
Poultry (including eggs), imported for any 33.00 per load.
purpose.
Animals transiting\1\ the United States:
Cattle.................................. 1.00 per head.
Swine................................... 0.25 per head.
Sheep and goats......................... 0.25 per head.
[[Page 20434]]
Horses and all other animals............ 4.50 per head.
------------------------------------------------------------------------
\1\ The user fee in this section will be charged for intransit
authorizations at the port where the authorization services are
performed. For additional services provided by APHIS, at any port, the
applicable hourly user fee will apply.
* * * * *
9. In Sec. 130.8, paragraph (a) is amended by revising the table to
read as follows:
Sec. 130.8 User fees for other services.
(a) * * *
------------------------------------------------------------------------
Service User fee
------------------------------------------------------------------------
Inspection for approval of slaughter
establishment:
Initial approval............................ $246.50 for all
inspections required
during the year.
Renewal..................................... 213.50 for all
inspections required
during the year.
Pet birds, except pet birds of U.S. origin
entering the United States from Canada:
Which have been out of United States more 169.75 per lot.
than 60 days.
Which have been out of United States 60 days 71.25 per lot.
or less.
Germ Plasm Being imported: \1\
Semen....................................... 39.50 per load.
Embryo...................................... 39.50 per load.
Germ Plasm Being exported: \2\
Semen....................................... 33.50 per certificate.
Embryo (up to 5 donor pairs)................ 54.75 per certificate.
Embryo (each additional group of donor 24.75 per group of
pairs, up to 5 pairs per group, on the same donor pairs.
certificate).
Processing VS form 16-3, ``Application for
Permit to Import Controlled Material/Import or
Transport Organisms or Vectors'':
For permit to import fetal bovine serum when 208.50 per
facility inspection is required. application.
For all other permits....................... 27.50 per application.
Amended application......................... 11.50 per amended
application.
Application renewal......................... 15.00 per application.
Fetal Bovine Serum sample verification.......... 666.00 per
verification.
Import compliance assistance.................... 24.00 per release.
Release from export agricultural hold........... 24.00 per release.
Inspection of approved establishments,
warehouses, and facilities under 9 CFR parts 94
through 96:
Approval (Compliance Agreement)............. 262.75 for first year
of 3-year approval
(for all inspections
required during the
year).
Renewed approval............................ 152.00 per year for
second and third
years of 3-year
approval (for all
inspections required
during the year).
------------------------------------------------------------------------
\1\ For inspection of empty containers being imported into the United
States, the applicable hourly user fee would apply, unless a user fee
has been assessed under 7 CFR part 354.3.
\2\ This user fee includes a single inspection and resealing of the
container at the APHIS employee's regular tour of duty station or at a
limited port. For each subsequent inspection and resealing required,
the applicable hourly user fee would apply.
* * * * *
10. Section 130.9 is amended as follows:
a. In paragraph (a), introductory text, by removing ``$50'' and
adding ``$56'' in its place, and by removing ``$12.50'' and adding
``$14.00'' in its place.
b. In paragraph (a), introductory text, by removing ``$16.00'' and
adding ``$16.50, for each employee required to perform the service'' in
its place.
c. By revising paragraph (b) to read as set forth below.
Sec. 130.9 User fees for miscellaneous import or entry services.
* * * * *
(b) If a service must be conducted on a Sunday or holiday or at any
other time outside the normal tour of duty of the employee, then the
premium user fee rate, as provided for in 9 CFR part 97, in lieu of the
user fee listed in paragraph (a) of this section, must be paid for each
employee required to perform each service:
(1) $65.00 per hour for weekdays and holidays;
(2) $16.25 per quarter-hour for weekdays and holidays;
(3) $74.00 per hour for Sundays;
(4) $18.50 per quarter-hour for Sundays;
(5) With a minimum of $16.50.
* * * * *
11. In Sec. 130.50(b)(1), footnote 8 and the reference to it are
redesignated as footnote 9, and in Sec. 130.20(a), footnote 7 and the
reference to it, are redesignated as footnote 8.
12. A new Sec. 130.10 is added to read as follows:
Sec. 130.10 User fees for pet birds quarantined at APHIS-owned or
supervised quarantine facilities.
(a) The person for whom the service is provided and the person
requesting the service are jointly and severally liable for the
following user fees, which include standard care, feed, and
[[Page 20435]]
handling, and which must be paid for each animal or bird quarantined in
an Animal Import Center 7 or other APHIS owned or supervised
quarantine facility:
---------------------------------------------------------------------------
\7\ APHIS Animal Import Centers are located in Honolulu, HI,
Miami, FL, and Newburgh, NY. The addresses of these facilities are
published in part 92 of this chapter.
------------------------------------------------------------------------
Daily
Number of birds is isolette user
fee
------------------------------------------------------------------------
1.............................................................. $6.50
2.............................................................. 7.75
3.............................................................. 9.25
4.............................................................. 10.75
5.............................................................. 12.00
------------------------------------------------------------------------
(b) Based on the information provided to APHIS personnel, APHIS
personnel at the Animal Import Center or other APHIS owned or
supervised quarantine facility will determine the appropriate number of
birds that should be housed per isolette.
(c) If the person or persons for whom the service is provided or
the person or persons requesting the service request additional
services on an hourly basis, the user fees for each employee required
to perform the service are:
(1) $56.00 per hour;
(2) $14.00 per quarter-hour;
(3) With a minimum of $16.50.
(Approved by the Office of Management and Budget under control
number 0579-0094.)
13. Section 130.14 is amended as follows:
a. By revising the section heading to read as set forth below.
b. In paragraph (a), after the term ``NVSL'', by adding the phrase
``or at authorized import sites (excluding FADDL)''.
c. In paragraph (a), by revising the text of footnote 1 to the
table to read as set forth below.
d. By adding a new paragraph (c) to read as set forth below.
e. By adding at the end of the section the OMB control numbers as
set forth below.
Sec. 130.14 User fees for tests performed by the NVSL or at authorized
import sites (excluding FADDL).
(a) * * *
\1\ Tests with multiple and subsequent antigens can be set up
for a fraction of the cost of multiple single-antigen tests. Tests
subsequent to the first antigen used for these assays are reduced
down to 20% of the cost of using the first antigen. The following
are examples of these cost savings: complement fixation (CF) tests
for equine encephalomyelitis or vesicular stomatitis;
hemagglutination inhibition (HI) for equine encephalomyelitis or
equine influenza; virus neutralization (VN) tests for porcine
respiratory and reproductive syndrome. For example, for CF tests for
eastern equine encephalomyelitis (EEE), western equine
encephalomyelitis (WEE), and Venezuelan equine encephalomyelitis
(VEE) and for VN tests for the New Jersey and Indiana serovars of
vesicular stomatitis (VS), the costs are as follows: EEE--$9.00, WEE
and VEE--$2.00 each; VS New Jersey--$7.50, VS Indiana--$1.50. The
total of these five assays is $22.00 for each specimen submitted.
* * * * *
(c) The user fees in this section do not include any costs that may
be incurred due to special mail handling, such as express, overnight,
or foreign mailing. If a test requires special mail handling, all costs
incurred must be paid by the user as specified in paragraph (a) of this
section, in addition to the user fee listed in paragraph (a) of this
section.
(Approved by the Office of Management and Budget under control
numbers 0579-0055 and 0579-0094.)
14. Section 130.15 is amended as follows:
a. In paragraph (a), by revising the text of footnote 1 to the
table to read as set forth below.
b. By adding a new paragraph (c) to read as set forth below.
c. By adding at the end of the section the OMB control numbers as
set forth below.
Sec. 130.15 User fees for tests performed at FADDL.
(a) * * *
\1\ Tests with multiple and subsequent antigens can be set up
for a fraction of the cost of multiple single-antigen tests. Tests
subsequent to the first antigen used for these assays are reduced
down to 20% of the cost of using the first antigen. The following
assays are examples of these cost savings: complement fixation (CF)
tests for foot-and-mouth disease or vesicular stomatitis; virus
neutralization (VN) tests for foot-and-mouth disease or vesicular
stomatitis. For example, for CF and VN tests for foot-and-mouth
disease A, O, and C antigens, the costs are as follows: CF A
antigen--$30.50, O antigen--$6.25, and C antigen--$6.25; VN A
antigen--$22.00, O antigen--$4.50, and C antigen--$4.50. The total
of these six assays is $74.00 for each specimen tested for these
agents.
* * * * *
(c) The user fees in this section do not include any costs that may
be incurred due to special mail handling, such as express, overnight,
or foreign mailing. If a test requires special mail handling, all costs
incurred must be paid by the user as specified in paragraph (a) of this
section in addition to the user fee listed in paragraph (a) of this
section.
(Approved by the Office of Management and Budget under control
numbers 0579-0055 and 0579-0094.)
15. Section 130.16 is amended as follows:
a. In paragraph (a), in the table, by revising the entry for
``Virus isolation'' and by adding a new test in alphabetical order to
read as set forth below.
b. By adding a new paragraph (c) to read as set forth below.
c. By adding at the end of the section the OMB control numbers as
set forth below.
Sec. 130.16 User fees for reference assistance testing.
(a) * * *
------------------------------------------------------------------------
User
Test fee
------------------------------------------------------------------------
* * * * *
(3) Other tests:
* * * * *
Virus isolation (except Newcastle disease virus)............... 29.75
Virus isolation for Newcastle disease virus.................... 14.00
* * * * *
------------------------------------------------------------------------
* * * * *
(c) The user fees in this section do not include any costs that may
be incurred due to special mail handling, such as express, overnight,
or foreign mailing. If a test requires special mail handling, all costs
incurred must be paid by the user as specified in paragraph (a) of this
section in addition to the user fee listed in paragraph (a) of this
section.
(Approved by the Office of Management and Budget under control
numbers 0579-0055 and 0579-0094.)
16. Section 130.17 is amended as follows:
a. In paragraph (a), in the table, in the entry for Johnin: OT,
under the Unit (ml.) column, by removing ``10'' and adding ``2'' in its
place.
b. By adding a new paragraph (c) to read as set forth below.
c. By adding at the end of the section the OMB control number as
set forth below.
Sec. 130.17 User fees for diagnostic reagents, slide sets, and tissue
sets.
* * * * *
(c) The user fees in this section do not include any costs that may
be incurred due to special mail handling, such as express, overnight,
or foreign mailing. If a test requires special mail handling, all costs
incurred must be paid by the user as specified in paragraph (a) of this
section in addition to the user fee listed in paragraph (a) of this
section.
(Approved by the Office of Management and Budget under control
number 0579-0094.)
[[Page 20436]]
17. Section 130.18 is amended as follows:
a. By redesignating the existing text as paragraph (a).
b. By adding a new paragraph (b) to read as set forth below.
c. By adding at the end of the section the OMB control number as
set forth below.
Sec. 130.18 User fees for sterilization by gamma radiation.
(a) * * *
(b) The user fees in this section do not include any costs that may
be incurred due to special mail handling, such as express, overnight,
or foreign mailing. If a test requires special mail handling, all costs
incurred must be paid by the user as specified in paragraph (a) of this
section in addition to the user fee listed in paragraph (a) of this
section.
(Approved by the Office of Management and Budget under control
number 0579-0094.)
18. Section 130.20 is amended as follows:
a. By revising paragraph (a) to read as set forth below.
b. By revising (b)(1) to read as set forth below.
c. In paragraph (c), by removing the words ``it is endorsed'' and
by adding the phrase ``the export health certificate is prepared for
endorsement completely at the site of the inspection'' in their place.
d. In paragraph (c), by removing the reference ``Sec. 130.7'' and
adding ``Sec. 130.21'' in its place.
e. By redesignating paragraph (d) as paragraph (e) and adding a new
paragraph (d) to read as set forth below.
Sec. 130.20 User fees for endorsing export health certificates.
(a) All user fees in this paragraph are for services provided for
the endorsement of export health certificates which do not require the
verification of tests or vaccinations. The person for whom the service
is provided and the person requesting the service are jointly and
severally liable for paying the following user fees for each export
health certificate \8\ endorsed for the following types of animals,
birds, or animal products, regardless of the number of animals, birds,
or animal products covered by the certificate.
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\8\ An export health certificate may need to be endorsed for an
animal being exported from the United States if the country to which
the animal is being shipped requires one. APHIS endorses export
health certificates as a service.
------------------------------------------------------------------------
User
Certificate categories fee
------------------------------------------------------------------------
Slaughter animals, of any type, moving to Canada or Mexico..... $24.50
Nonslaughter horses to Canada.................................. 26.25
Poultry........................................................ 21.00
Hatching eggs.................................................. 21.00
Animal products................................................ 21.50
Other endorsements or certifications........................... 16.50
------------------------------------------------------------------------
(b)(1) All user fees in this paragraph are for services provided
for the endorsement of export health certificates which require the
verification of tests or vaccinations. The person for whom the service
is provided and the person requesting the service are jointly and
severally liable for paying the following user fees for each export
health certificate endorsed for animals and birds, depending on the
number of animals covered by the certificate and the number of tests
required.
------------------------------------------------------------------------
Number of animals or
Number of tests/vaccinations birds on certificate User fee
------------------------------------------------------------------------
1-2.................................. First animal........... $52.50
Each additional animal. 3.00
3-6.................................. First animal........... 64.75
Each additional animal. 5.00
7 or more............................ First animal........... 75.75
Each additional animal. 6.00
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* * * * *
(d) The user fees prescribed in this section will not apply if a
requested export health certificate is not endorsed by a designated
APHIS employee. The minimum user fee of $16.50 will be charged for each
export health certificate that is requested and reviewed, but not
endorsed.
* * * * *
19. Section 130.21 is amended as follows:
a. By revising paragraphs (a)(1) through (a)(5) to read as set
forth below.
b. By adding new paragraphs (a)(6) and (a)(7) to read as set forth
below.
c. In paragraph (b) introductory text, before the colon, by adding
the phrase ``charged per each employee required to perform the
service''.
d. In paragraph (b)(1), by removing ``$50'' and adding ``$56'' in
its place.
e. In paragraph (b)(2), by removing the figure ``$12.50'' and
adding ``$14.00'' in its place.
f. In paragraph (b)(3), by removing the figure ``$16.00'' and
adding ``$16.50'' in its place.
g. By revising paragraph (c) to read as set forth below.
Sec. 130.21 User fees for inspection and supervision services provided
within the United States for export animals, birds, and animal products
and byproducts.
(a) * * *
(1) Inspecting an export isolation facility and the animals in it;
(2) Supervising animal or bird rest periods prior to export;
(3) Supervising loading or unloading of animals or birds for export
shipment;
(4) Inspecting means of conveyance used to export animals or birds;
(5) Conducting inspections under authority of part 156 of this
chapter;
(6) Approving or inspecting an embryo or semen collection center or
the animals in it; and
(7) Other export or embarkation services not specified elsewhere in
this part.
* * * * *
(c) If a service must be conducted on a Sunday or holiday or at any
other time outside the normal tour of duty of the employee, then the
premium user fee rate, as provided for in 9 CFR part 97, in lieu of the
user fee listed in paragraph (b) of this section, must be paid for each
employee required to perform each service:
(1) $65.00 per hour for weekdays and holidays;
(2) $16.25 per quarter-hour for weekdays and holidays;
(3) $74.00 per hour for Sundays;
(4) $18.50 per quarter-hour for Sundays;
(5) With a minimum of $16.50.
* * * * *
20. Section 130.50 is amended as follows:
a. In paragraph (b)(1), newly designated footnote 9 is revised to
read as set forth below.
b. In paragraph (b)(2), immediately before the semi-colon, by
adding ``drawn on a U.S. bank in U.S. dollars and made payable to the
U.S. Department of Agriculture or USDA''.
c. In paragraph (b)(3), immediately before the semi-colon, by
adding ``drawn on a U.S. bank in U.S. dollars and made payable to the
U.S. Department of Agriculture or USDA''.
d. By revising paragraph (b)(4) to read as set forth below.
Sec. 130.50 Payment of user fees.
* * * * *
(b) * * *
(4) Credit cards (VISATM or MasterCardTM) if payment is
made at an Animal Import Center or an APHIS office that is equipped to
process credit cards.\9\
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\9\ A list of Animal Import Centers and APHIS offices that
accept cash or credit cards may be obtained from the Animal and
Plant Health Inspection Service, Veterinary Services, National
Center for Import and Export, 4700 River Road Unit 38, Riverdale, MD
20737-1231.
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[[Page 20437]]
* * * * *
Done in Washington, DC, this 1st day of May 1996.
Terry L. Medley,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 96-11211 Filed 5-6-96; 8:45 am]
BILLING CODE 3410-34-P