[Federal Register Volume 62, Number 119 (Friday, June 20, 1997)] [Notices] [Pages 33582-33583] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-16248] ======================================================================== Notices Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains documents other than rules or proposed rules that are applicable to the public. Notices of hearings and investigations, committee meetings, agency decisions and rulings, delegations of authority, filing of petitions and applications and agency statements of organization and functions are examples of documents appearing in this section. ======================================================================== Federal Register / Vol. 62, No. 119 / Friday, June 20, 1997 / Notices [[Page 33582]] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Farm Service Agency U.S. Warehouse Act Fees AGENCY: Farm Service Agency, USDA. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: The purpose of this notice is to publish a schedule increasing the fees to be charged under the United States Warehouse Act (USWA) regulations covering cotton, grain, tobacco, wool, dry bean, nut, syrup, and cottonseed warehouse operators for licensing and inspection services. EFFECTIVE DATE: October 1, 1997. FOR FURTHER INFORMATION CONTACT: Mr. Steve Mikkelsen, Warehouse and Inventory Division, Farm Service Agency, United States Department of Agriculture, 1400 Independence Avenue, SW, STOP 0553, Washington, DC 20250-0553, telephone (202) 720-7433, FAX (202) 690-3123. Background Pursuant to the provisions of the USWA which regulates warehouse operations for the benefit of all depositors, the Secretary has the authority to license public warehouse operators. Warehouse operators that opt to have a USWA license understand that fees will be imposed to cover the costs of the program. Specifically, the Omnibus Budget Reconciliation Act of 1981 mandates the imposition of fees for USWA licensed warehouses. The Act provides in part, that: The Secretary of Agriculture * * * shall charge, assess, and cause to be collected a reasonable fee for: (l) Each examination or inspection of a warehouse * * *; (2) each license issued to any person to classify, inspect, grade, sample, or weigh agricultural products stored or to be stored * * *; (3) each annual warehouse license issued to a warehouseman to conduct a warehouse * * *; and (4) each warehouse license amended, modified, extended, or reinstated * * *. Such fees shall cover, as nearly as practicable, the costs of providing such services and licenses * * * including administrative and supervisory costs * * *. The USWA mandates fee collections to help self-sustain the Federal warehouse licensing and examination programs. The Farm Service Agency (FSA) is raising USWA license and user fees to increase the amount of revenue generated to recover more of the actual operating costs for the USWA in fiscal year 1998 (FY). The regulations used in administering USWA fees were last amended effective October 1, 1994, (59 FR 51355), at which time an annual fee was imposed with respect to cotton warehouse operators. These regulations at 7 CFR part 735-743 provide that USWA fees could be adjusted annually in order to cover, as nearly as practicable, the operating costs for the program. A comprehensive review of the warehouse examination program was performed to review staffing levels, travel expenses, services that warehouse operators can expect to receive, services for which warehouse operators are willing to pay, and the type and scope of examinations needed to adequately protect a depositor's interest in warehouses licensed under the USWA. As a result of streamlining and restructuring of the Kansas City Commodity Office (KCCO) FSA, and the Washington office of FSA, the total staffing of FSA personnel associated with USWA activities has been reduced by 18.5 percent (i.e., warehouse examiners and office personnel) while supervisory staffing levels have been reduced by 24 percent. Other efficiencies have been achieved through a variety of means including: the purchase and use of laptop computers for field warehouse examiners, thereby reducing time in performing examinations and reducing printing costs for forms used in examinations; and the reduction in travel expenses by personnel in KCCO and in Washington. The FY 98 fee adjustments reflect increases of no greater than 10 percent for each type of commodity with the rate of increase depending on FSA's direct costs with respect to warehouse examinations for that commodity. Establishing an electronic data interchange (EDI) system for those agricultural products approved under the USWA has the potential of providing U.S. agribusiness and the USWA warehouse examination program considerable savings. For example, since 1995 electronic warehouse receipts (EWRs) have been used by the cotton industry and it is estimated that $5 to $10 per bale has been saved for each EWR issued in lieu of a paper receipt for a total savings of $40 to $80 million per year. The use of EDI for cotton has reduced the costs of the USWA warehouse examination program by approximately 30 percent. Similarly, the use of EWRs for grain and other agricultural products approved under the USWA would represent a major step in reducing the paperwork burden that currently impedes efficiency and add costs to the operations of agribusiness and the USWA. However, because of statutory restriction EWRs are only authorized for cotton. Warehouse and Service License Fees The fee for original issuance, reissuance, or duplication of a license for cotton, grain, tobacco, wool, dry beans, nut, syrup, and cottonseed is $75 for each license issued. The fee charged to license individuals to inspect, sample, grade, classify, or weigh commodities is $30 for each service license issued. Warehouse Annual and Inspection Fees These fees are shown in the following tables by agricultural product. Inspection fees are assessed for each original examination or inspection, or reexamination or reinspection for modification of an existing license. Annual fees are assessed independently of inspection fees. Cotton [In bales] ------------------------------------------------------------------------ Annual Annual fee for fee for each each warehouse warehouse Licensed capacity location location with a without a CCC CCC storage storage agreement agreement ------------------------------------------------------------------------ 1-20,000.......................................... $550 $1,100 20,001-40,000..................................... 715 1,430 40,001-60,000..................................... 880 1,760 60,001-80,000..................................... 1,100 2,200 80,001-100,000.................................... 1,375 2,750 [[Page 33583]] 100,001-120,000................................... 1,650 3,300 120,001-140,000................................... 1,925 3,850 140,001-160,000................................... 2,200 4,400 160,001+.......................................... \1\ 2,200 \2\ 4,400 ------------------------------------------------------------------------ \1\ Plus $55 per 5,000 bale capacity above 160,000 bales or fraction thereof. \2\ Plus $110 per 5,000 bale capacity above 160,000 or fraction thereof. Inspection fees will be charged at the rate of $75 for each 1,000 bales of licensed capacity, or fraction thereof, but in no case less than $150 nor more than $1,500. Grain [In bushels] ------------------------------------------------------------------------ Annual Annual fee for fee for each each warehouse warehouse Licensed Capacity location location with a without a CCC CCC storage storage agreement agreement ------------------------------------------------------------------------ 1-150,000......................................... $145 $290 150,001-250,000................................... 290 580 250,001-500,000................................... 430 860 500,001-750,000................................... 575 1,150 750,001-1,000,000................................. 715 1,430 1,000,001-1,200,000............................... 860 1,720 1,200,001-1,500,000............................... 1,000 2,000 1,500,001-2,000,000............................... 1,145 2,290 2,000,001-2,500,000............................... 1,290 2,580 2,500,001-5,000,000............................... 1,430 2,860 5,000,001-7,500,000............................... 1,575 3,150 7,500,001-10,000,000.............................. 1,720 3,440 10,000,001+....................................... \1\ 1,720 \2\ 3,440 ------------------------------------------------------------------------ \1\ Plus $45 per million bushels above 10,000,000 or fraction thereof. \2\ Plus $90 per million bushels above 10,000,000 or fraction thereof. Inspection fees will be charged at the rate of $15 for each 10,000 bushels or fraction thereof, but in no case less than $150 nor more than $1,500. Dry Beans [In hundredweight] ------------------------------------------------------------------------ Annual Licensed capacity fee ------------------------------------------------------------------------ 100-90,000................................................... $715 90,001-150,000............................................... 1,000 150,001-300,000.............................................. 1,290 300,001-450,000.............................................. 1,575 450,001-600,000.............................................. 1,860 600,001-720,000.............................................. 2,145 720,001-900,000.............................................. 2,435 900,001-1,200,000............................................ 2,720 1,200,001-1,500,000.......................................... 3,000 1,500,001-3,000,000.......................................... 3,290 3,000,001+................................................... 3,575 ------------------------------------------------------------------------ Inspection fees will be charged at the rate of $15 for each 1,000 hundredweight, or fraction thereof, but in no case less than $150 nor more than $1,500. Tobacco and Wool Annual fee: $15 for each 100,000 pounds of licensed capacity, or fraction thereof, but in no case less than $575. Inspection fee: $15 for each 100,000 pounds of licensed capacity, or fraction thereof, but in no case less than $1,500. Nuts Annual fee: 13 cents for each 100 short ton of licensed capacity, or fraction thereof, but in no case less than $575. Inspection fee: $7 for each 100 short ton of licensed capacity, or fraction thereof, of peanuts and $13 for each 1,000 hundredweight, or fraction thereof, but in no case less than $150 nor more than $1,500. Syrup Annual fee: $15 for each 5,000 gallons of licensed capacity, or fraction thereof, but in no case less than $575. Inspection fee: $5 for each 5,000 gallons, or fraction thereof, but in no case less than $150 nor more than $1,500. Cottonseed Annual fee: $15 for each 1,000 short tons of licensed capacity, or fraction thereof, but in no case less than $575. Inspection fee: $15 for each 1,000 short tons of licensed capacity, or fraction thereof, but in no case less than $150 nor more than $1,500. Signed at Washington, D.C., on June 16, 1997. Richard O. Newman, Acting Administrator, Farm Service Agency. [FR Doc. 97-16248 Filed 6-19-97; 8:45 am] BILLING CODE 3410-05-P