[Federal Register Volume 82, Number 88 (Tuesday, May 9, 2017)]
[Notices]
[Pages 21502-21506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09350]
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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.
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Federal Register / Vol. 82, No. 88 / Tuesday, May 9, 2017 / Notices
[[Page 21502]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[Document No. AMS-LPS-16-0117]
2017 Rates Charged for AMS Services
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Notice.
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SUMMARY: The Agricultural Marketing Service (AMS) is announcing the
2017 rates it will charge for voluntary grading, inspection,
certification, auditing and laboratory services for a variety of
agricultural commodities including meat and poultry, fruits and
vegetables, eggs, dairy products, and cotton and tobacco. The 2017
regular, overtime, holiday, and laboratory services rates will be
applied at the beginning of the crop year, fiscal year or as required
by law (June 1 for most cotton programs) depending on the commodity.
Other starting dates are added to this notice based on cotton industry
practices. This action establishes the rates for user-funded programs
based on costs incurred by AMS.
DATES: May 10, 2017.
FOR FURTHER INFORMATION CONTACT: Sonia Jimenez, AMS, U.S. Department of
Agriculture, Room 2095-S, 1400 Independence Ave. SW., Washington, DC
20250; telephone (202) 720-6766, fax (202) 205-5772; email
[email protected].
SUPPLEMENTARY INFORMATION: The Agricultural Marketing Act of 1946, as
amended, (AMA) (7 U.S.C. 1621-1627), provides for the collection of
fees to cover costs of various inspection, grading, certification or
auditing services covering many agricultural commodities and products.
The AMA also provides for the recovery of costs incurred in providing
laboratory services. The Cotton Statistics and Estimates Act (7 U.S.C.
471-476) and the U.S. Cotton Standards Act (7 U.S.C. 51-65) provide for
classification of cotton and development of cotton standards materials
necessary for cotton classification. The Cotton Futures Act (7 U.S.C.
15b) provides for futures certification services and the Tobacco
Inspection Act (7 U.S.C. 511-511s) provides for tobacco inspection and
grading. These Acts also provide for the recovery of costs associated
with these services.
On November 13, 2014, the Department of Agriculture (Department)
published in the Federal Register a final rule that established
standardized formulas for calculating the fees charged by AMS user-
funded programs (79 FR 67313). Every year since then, the Department
has published in the Federal Register a notice announcing the rates for
its user -funded programs.
This notice announces the 2017 fee rates for voluntary grading,
inspection, certification, auditing and laboratory services for a
variety of agricultural commodities including meat and poultry, fruits
and vegetables, eggs, dairy products, and cotton and tobacco on a per-
hour rate and, in some instances, the equivalent per-unit cost. The
per-unit cost is provided to facilitate understanding of the costs
associated with the service to the industries that historically used
unit-cost basis for payment. The fee rates will be effective at the
beginning of the fiscal year, crop year, or as required by specific
laws (June 1 for most cotton programs). The cotton futures-related
services effective date has been changed to August 1 to allow for
cotton contracts to expire before starting a new fee rate.
The rates reflect direct and indirect costs of providing services.
Direct costs include the cost of salaries, employee benefits, and if
applicable, travel and some operating costs. Indirect or overhead costs
include the cost of Program and Agency activities supporting the
services provided to the industry. The formula used to calculate these
rates also includes operating reserve, which may add to or draw upon
the existing operating reserves.
These services include the grading, inspection or certification of
quality factors in accordance with established U.S. Grade Standards;
audits or accreditation according to International Organization for
Standardization (ISO) standards and/or Hazard Analysis and Critical
Control Point (HACCP) principles; and other marketing claims. The
quality grades serve as a basis for market prices and reflect the value
of agricultural commodities to both producers and consumers. AMS'
grading and quality verification and certification, audit and
accreditation, plant process and equipment verification, and laboratory
approval services are voluntary tools paid for by the users on a fee-
for-service basis. The agriculture industry can use these tools to
promote and communicate the quality of agricultural commodities to
consumers. Laboratory services are provided for analytic testing,
including but not limited to chemical, microbiological, biomolecular,
and physical analyses. AMS is required by statute to recover the costs
associated with these services.
As required by the Cotton Statistics and Estimates Act (7 U.S.C.
471-476), consultations regarding the establishment of the fee for
cotton classification with U.S. cotton industry representatives are
held in the beginning of the year when most industry stakeholder
meetings take place. Representatives of all segments of the cotton
industry, including producers, ginners, bale storage facility
operators, merchants, cooperatives, and textile manufacturers were
informed of the fees during various industry-sponsored forums.
Rates Calculations
AMS calculated the rate for services, per hour per program
employee, using the following formulas (a per-unit base is included for
programs that charge for services on a per-unit basis):
(1) Regular rate. The total AMS grading, inspection, certification,
classification, audit, or laboratory service program personnel direct
pay divided by direct hours for the previous year, which is then
multiplied by the next year's percentage of cost of living increase,
plus the benefits rate, plus the operating rate, plus the allowance for
bad debt rate. If applicable, travel expenses may also be added to the
cost of providing the service.
(2) Overtime rate. The total AMS grading, inspection,
certification, classification, audit, or laboratory service program
personnel direct pay divided by direct hours, which is then multiplied
by the next year's percentage of cost of living increase and then
[[Page 21503]]
multiplied by 1.5, plus the benefits rate, plus the operating rate,
plus an allowance for bad debt. If applicable, travel expenses may also
be added to the cost of providing the service.
(3) Holiday rate. The total AMS grading, inspection, certification,
classification, audit, or laboratory service program personnel direct
pay divided by direct hours, which is then multiplied by the next
year's percentage of cost of living increase and then multiplied by 2,
plus the benefits rate, plus the operating rate, plus an allowance for
bad debt. If applicable, travel expenses may also be added to the cost
of providing the service.
When possible, AMS is adjusting the rates to cover all of its
expenses and to provide for reasonable operating reserves. Many of
these rates were not adjusted for a number of years. In some cases fees
are decreased due to efficiencies and cost cutting measures. Applying
the formulas described above without consideration of the operating
reserves, in some cases, would have resulted in a substantial increase
in fees. Last year, AMS started the process of adjusting some of the
rates to recover costs associated with providing these services. To
avoid an undue burden on industry operations in these cases, AMS
started to phase in some of the increases over a multi-year period. AMS
continued this process and reassessed whether the fee rates and phase-
in period were appropriate based on the formula and established
operating reserve. Fees are being adjusted accordingly. Drawing upon
the existing operating reserves will not affect AMS' ability to
maintain the minimally required operating reserves.
All rates are per-hour except when a per-unit cost is noted. The
specific amounts in each rate calculation are available upon request
from the specific AMS program.
2017 Rates
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Includes
Regular Overtime Holiday travel costs Start date
in rate
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Cotton Fees
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7 CFR Part 27--Cotton Classification Under Cotton Futures Legislation
Subpart A--Regulations; Sec. Sec. 27.80--27.90 Costs of Classifications and Micronaire
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Cotton Standardization
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Certification for Futures $4.25/bale X August 1, 2017.
Contract (Grading services
for samples submitted by CCC-
licensed samplers).
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Transfer of Certification Data $0.20/bale or $5.00 per page minimum X August 1, 2017.
to New Owner or Certified
Warehouse (Electronic
transfer performed).
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7 CFR Part 28--Cotton Classing, Testing, and Standards
Subpart A--Regulations Under the United States Cotton Standards Act; Sec. Sec. 28.115-28.126 Fees and Costs
Subpart D--Cotton Classification and Market News Service for Producers; Sec. 28.909 Costs; Sec. 28.910
Classification of Samples and Issuance of Classification Data; Sec. 28.911 Review Classification
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Cotton Grading
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Form 1: Grading Services for $2.30/bale X July 1, 2017.
Producers (submitted by
licensed sampler).
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Form 1 Review (new sample $2.30/bale X July 1, 2017.
submitted by licensed
sampler).
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Form A Determinations (sample $2.30/bale X July 1, 2017.
submitted by licensed
warehouse).
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Form C Determinations (sample $2.30/bale ............ July 1, 2017.
submitted by non-licensed
entity; bale sampled under
USDA supervision).
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Form D Determination (sample $2.30/bale X July 1, 2017.
submitted by owner or agent;
classification represents
sample only).
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Foreign Growth Classification $6.00/sample X August 1, 2017.
(sample of foreign growth
cotton submitted by owner or
agent; classification
represents sample only).
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Arbitration (comparison of a $6.00/sample X August 1, 2017.
sample to the official
standards or a sample type).
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Practical Cotton Classing Exam Exam: $150/applicant X July 1, 2017.
(for non-USDA employees).
Reexamination: $130/applicant
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Special Sample Handling $0.50/sample X July 1, 2017.
(return of samples per
request).
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Electronic Copy of $0.05/bale ($5.00/month minimum with X July 1, 2017.
Classification Record. any records received)
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Form A Rewrite (reissuance of $0.15/bale or $5.00/page minimum X August 1, 2017.
Form 1, Form A, or Futures
Certification data or
combination).
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[[Page 21504]]
Form R (reissuance of Form 1 $0.15/bale or $5.00/page minimum X July 1, 2017.
classification only).
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International Instrument Level $4.00/sample X July 1, 2017.
Assessment.
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Dairy Fees
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7 CFR Part 58--Grading and Inspection, General Specifications for Approved Plants and Standards for Grades of
Dairy Products
Subpart A--Regulations Governing the Inspection and Grading Services of Manufactured or Processed Dairy
Products; Sec. Sec. 58.38-58.46 Fees and Charges
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Continuous Resident Grading $76.00 $90.92 $107.24 X Oct 1, 2017.
Service.
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Non-resident and Intermittent 82.00 96.76 116.64 X Oct 1, 2017.
Grading Service; State
Graders; Equipment Review.
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Non-resident Services 6 p.m.-6 90.20 106.44 128.32 X Oct 1, 2017.
a.m. (10 percent night
differential).
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Export Certificate Services... 82.00 N/A N/A ............ Oct 1, 2017.
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Special Handling.............. 41.00 N/A N/A ............ Oct 1, 2017.
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Fax Charge.................... 4.00 N/A N/A ............ Oct 1, 2017.
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Derogation Application........ 123.00 N/A N/A ............ Oct 1, 2017.
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Fruit and Vegetable Fees
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7 CFR Part 51--Fresh Fruits, Vegetables and Other Products (Inspection, Certification, and Standards)
Subpart A--Regulations; Sec. Sec. 51.37-51.44 Schedule of Fees and Charges at Destination Markets; Sec.
51.45 Schedule of Fees and Charges at Shipping Point Areas
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Quality and Condition $191.00 per lot ............ Oct 1, 2017.
Inspections for Whole Lots.
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Quality and Condition Half Lot $159.00 per lot ............ Oct 1, 2017.
or Condition-Only Inspections
for Whole Lots.
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Condition--Half Lot........... $146.00 per lot ............ Oct 1, 2017.
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Quality and Condition or $87.00 per lot ............ Oct 1, 2017.
Condition-Only Inspections
for Additional Lots of the
Same Product.
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Dockside Inspections--Each $0.044 per pkg. ............ Oct 1, 2017.
package weighing <30 lbs.
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Dockside Inspections--Each $0.068 per pkg. ............ Oct 1, 2017.
package weighing >30 lbs.
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Charge per Individual Product $174.00 per lot ............ Oct 1, 2017.
for Dockside Inspection.
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Charge per Each Additional Lot $79.00 per lot ............ Oct 1, 2017.
of the Same Product.
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Inspections for All Hourly $85.00 $112.00 $148.00 ............ Oct 1, 2017.
Work.
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Audit Services................ $108.00 ............ Oct 1, 2017.
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7 CFR Part 52--Processed Fruits and Vegetables, Processed ProductsThereof, and Other Processed Food Products
Subpart--Regulations Governing Inspection and Certification; Sec. Sec. 52.41-52.51 Fees and Charges
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Lot Inspections............... $75.00 $95.00 $116.00 X Oct 1, 2017.
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In-plant Inspections Under 72.00 92.00 112.00 X Oct 1, 2017.
Annual Contract (year-round).
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Additional Graders (in-plant) 83.00 106.00 128.00 X Oct 1, 2017.
or Less Than Year-Round.
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Audit Services................ $108.00 ............ Oct 1, 2017.
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Meat and Livestock Fees
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7 CFR Part 54--Meats, Prepared Meats, and Meat Products (Grading, Certification, and Standards)
Subpart A--Regulations; Sec. Sec. 54.27-54.28 Charges for Service
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Commitment Grading............ $66.00 $83.00 $100.00 X Oct 1, 2017.
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[[Page 21505]]
Non-commitment Grading........ 87.00 103.00 120.00 ............ Oct 1, 2017.
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Night Differential (6 p.m.-6 73.00 91.00 109.00 ............ Oct 1, 2017.
a.m.).
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7 CFR Part 62--Livestock, Meat and Other Agricultural Commodities (Quality Systems Verification Programs)
Subpart A--Quality Systems Verification Definitions; Sec. 62.300 Fees and Other Costs for Service
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Auditing Activities........... $108.00 ............ Oct 1, 2017.
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7 CFR Part 75--Regulations for Inspection and Certification of Quality of Agricultural and Vegetable Seeds
Sec. 75.41 General
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Laboratory Testing............ $58.00 $86.00 $115.00 X Oct 1, 2017.
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Administrative Fee............ $14.50 per certificate ............ Oct 1, 2017.
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Poultry Fees
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7 CFR Part 56--Voluntary Grading of Shell Eggs
Subpart A--Grading of Shell Eggs; Sec. Sec. 56.45-56.54 Fees and Charges
7 CFR Part 70--Voluntary Grading of Poultry and Rabbit Products
Subpart A-Grading of Poultry and Rabbit Products; Sec. Sec. 70.70-70.78 Fees and Charges
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Resident Service (in-plant)... \1\ $48.00 \2\ $56.00 \2\ $81.00 X Oct 1, 2017.
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Resident, Night Differential \2\ 51.00 \2\ 62.00 \2\ 88.00 X Oct 1, 2017.
(6 p.m.-6 a.m.).
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Resident, Sunday Differential. \2\ 58.00 \2\ 69.00 N/A X Oct 1, 2017.
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Resident, Sunday and Night \2\ 63.00 \2\ 72.00 N/A X Oct 1, 2017.
Differential.
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Fee Service (non-scheduled)... 78.00 97.00 117.00 ............ Oct 1, 2017.
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Audit Service................. $108.00 ............ Oct 1, 2017.
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Science and Technology Fees
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7 CFR Part 91--Services and General Information (Science and Technology)
Subpart I--Fees and Charges; Sec. Sec. 91.37-91.45
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Laboratory Testing Services... $88.00 $104.00 $120.00 ............ Oct 1, 2017.
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Laboratory Approval Services 185.00 211.00 234.00 X Jan 1, 2018.
\3\.
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Tobacco Fees
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7 CFR Part 29--Tobacco Inspection
Subpart A--Policy Statement and Regulations Governing the Extension of Tobacco Inspection and Price Support
Services to New Markets and to Additional Sales on Designated Markets
Subpart B--Regulations; Sec. Sec. 29.123-29.129 Fees and Charges; Sec. 29.500 Fees and charges for
inspection and acceptance of imported tobacco
Subpart F--Policy Statement and Regulations Governing the Identification and Certification of Non-quota
Tobacco Produced and Marketed in Quota Area; Sec. 29.9251 Fees and Charges
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Domestic Permissive Inspection $55.00 $64.00 $72.00 ............ July 1, 2017.
and Certification (re-grading
of domestic tobacco for
processing plants, retesting
of imported tobacco, and
grading tobacco for research
stations.).
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Export Permissive Inspection $0.0025/pound X July 1, 2017.
and Certification (grading of
domestic tobacco for
manufacturers and dealers for
duty drawback consideration).
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Grading for Risk Management $0.015/pound X July 1, 2017.
Agency (for Tobacco Crop
Insurance Quality Adjustment
determinations).
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Pesticide Test Sampling $0.0065/kg or $0.0029/pound X July 1, 2017.
(collection of certified
tobacco sample and shipment
to AMS National Science
Laboratory for testing).
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[[Page 21506]]
Pesticide Retest Sampling $115.00/sample and $55.00/hour X July 1, 2017.
(collection of certified
tobacco sample from a
previously sampled lot for re-
testing at the AMS National
Science Laboratory; fee
includes shipping).
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Standards Course (training by $1,250.00/person ............ July 1, 2017.
USDA-certified instructor on
tobacco grading procedures).
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Import Inspection and $0.0170/kg or $0.0080/pound X July 1, 2017.
Certification (grading of
imported tobacco for
manufacturers and dealers).
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\1\ Administrative charges are applied in addition to hourly rates for resident service as specified in Part 56,
Subpart A, Sec. 56.52(a)(4); Part 56, Subpart A, Sec. 56.54(a)(2); Part 70, Subpart A, Sec. 70.76(a)(2);
Part 70, Subpart A, Sec. 70.77(a)(4) and Part 70, Subpart A, Sec. 70.77(a)(5).
\3\ Travel costs outside the United States will be added to the fee, if applicable.
Authority: 7 U.S.C. 15b; 7 U.S.C. 473a-b; 7 U.S.C. 55 and 61; 7
U.S.C. 51-65; 7 U.S.C. 471-476; 7 U.S.C. 511, 511s; and 7 U.S.C.
1621-1627.
Dated: May 4, 2017.
Bruce Summers,
Acting Administrator.
[FR Doc. 2017-09350 Filed 5-8-17; 8:45 am]
BILLING CODE 3410-02-P