Beef Promotion and Research Rules and Regulations
| Citation | 85 FR 825 |
| Record Number | 2019-28058 |
| Published date | 08 January 2020 |
| Section | Rules and Regulations |
| Court | Agricultural Marketing Service,Agriculture Department |
Federal Register, Volume 85 Issue 5 (Wednesday, January 8, 2020)
[Federal Register Volume 85, Number 5 (Wednesday, January 8, 2020)]
[Rules and Regulations]
[Pages 825-827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-28058]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 85, No. 5 / Wednesday, January 8, 2020 /
Rules and Regulations
[[Page 825]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1260
[No. AMS-LP-19-0054]
Beef Promotion and Research Rules and Regulations
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Direct final rule.
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SUMMARY: The Agricultural Marketing Service (AMS) is amending the Beef
Promotion and Research Order (Order) by updating the Harmonized Tariff
Schedule (HTS) codes for imported cattle, beef, veal, and beef product
to conform with recent updates by the U.S. International Trade
Commission (USITC) and used by the U.S. Customs and Border Protection
to assist in the collection of beef checkoff assessments.
DATES: This direct final rule is effective February 7, 2020, without
further action or notice, unless significant adverse comment is
received by January 23, 2020. If significant adverse comment is
received, AMS will publish a timely withdrawal of the amendment in the
Federal Register.
ADDRESSES: Comments should be posted online at www.regulations.gov.
Comments received will be posted without change, including any personal
information provided. All comments should reference the docket number
AMS-LP-19-0054, the date of submission, and the page number of this
issue of the Federal Register. Comments may also be sent to Kahl
Sesker, Agricultural Marketing Specialist; Research and Promotion
Division; Livestock and Poultry Program, AMS, USDA; Room 2610-S, STOP
0251, 1400 Independence Avenue SW, Washington, DC 20250-0251; or via
fax to (202) 720-1125. Comments will be made available for public
inspection at the above address during regular business hours or via
the internet at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Kahl Sesker, Agricultural Marketing
Specialist; Research and Promotion Division, Livestock and Poultry
Program; AMS, U.S. Department of Agriculture (USDA); Room 2610-S, STOP
0251, 1400 Independence Avenue SW, Washington, DC 20250-0251; fax (202)
720-1125; telephone (202) 253-8253; or email [email protected].
SUPPLEMENTARY INFORMATION:
Executive Orders 12866, 13563, and 13771
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health, and safety effects; distributive impacts; and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, reducing costs, harmonizing rules, and promoting
flexibility. This rule does not meet the definition of a significant
regulatory action contained in section 3(f) of Executive Order 12866
and therefore, the Office of Management and Budget (OMB) has waived
review of this action. Additionally, because this rule does not meet
the definition of a significant regulatory action, it does not trigger
the requirements contained in Executive Order 13771. See OMB's
Memorandum titled ``Interim Guidance Implementing Section 2 of the
Executive Order of January 30, 2017, titled `Reducing Regulation and
Controlling Regulatory Costs''' (February 2, 2017).
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have a retroactive
effect.
Section 11 of the Beef Promotion and Research Act of 1985 (Act) (7
U.S.C. 2910) provides that nothing in the Act may be construed to
preempt or supersede any other program relating to beef promotion
organized and operated under the laws of the U.S. or any State. There
are no administrative proceedings that must be exhausted prior to any
judicial challenge to the provisions of this rule.
Executive Order 13175
This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. The review reveals that is regulation would not
have substantial and direct effects on Tribal governments or
significant Tribal implications.
Paperwork Reduction Act
In accordance with OMB regulations (5 CFR part 1320) that implement
the Paperwork Reduction Act of 1995 (44 U.S.C. part 35), the
information collection and recordkeeping requirements contained in the
Order and accompanying Rules and Regulations have previously been
approved by OMB and were assigned OMB control number 0581-0093.
Background
The Act authorized the establishment of a national beef promotion
and research program. Title 7 CFR part 1260, the Beef Promotion and
Research Order (the Order), was published in the Federal Register on
July 18, 1986 (51 FR 21632), and the collection of assessments began on
October 1, 1986. The program is administered by the Cattlemen's Beef
Promotion and Research Board (Board), appointed by the Secretary of
Agriculture (Secretary) from industry nominations, and composed of 99
cattle producers and importers. The program is funded by a $1-per-head
assessment on producers selling cattle in the U.S. as well as an
equivalent assessment on importers of cattle, beef, veal, and beef
products.
Importers pay assessments on imported cattle, beef, veal, and beef
products. U.S. Customs and Border Protection collects and remits these
assessments to the Board. The term ``importer'' is defined as ``any
person who imports cattle, beef, or beef products from outside the
United States'' (7 CFR 1260.117). Imported beef or beef products is
defined as ``products which are imported into the United States which
the Secretary determines contain a substantial amount of beef,
including those products which have been assigned one or more of the
following numbers in the Tariff Schedule of the United States'' (7 CFR
1260.121).
The Act requires that assessments on imported beef and beef
products and
[[Page 826]]
veal and veal products be determined by converting such imports into
live animal equivalents to ascertain the corresponding number of head
of cattle. Carcass weight is the principal factor in calculating live
animal equivalents.
USITC periodically updates HTS codes. Since USITC updates HTS on a
regular basis, AMS routinely amends 7 CFR 1260.172(b) to incorporate
the updated HTS codes for imported cattle, beef, veal, and beef product
into the Order so that importers know what beef products are assessed
and their respective assessment rates. Consistent with USITC's recent
updates to HTS codes, AMS is updating the HTS codes in the Order
through this direct final rule.
Regulatory Flexibility Act
The purpose of RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly burdened. Pursuant to the requirements set forth in the
Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.), AMS has
considered the economic effect of this action on small entities and has
determined that this direct final rule does not have a significant
economic impact on a substantial number of small entities.
Effective August 19, 2019, the SBA published an interim final rule
(RIN 3245-AH17) that adjusts the monetary-based size standards for
inflation. As a result of this rule, the size classification for small
beef, veal, and cattle importing firms changed from sales of $750,000
or less to sales of $1,000,000 or less. As a result, a supplemental
analysis was conducted to determine whether the change in the size
standard would lead to a significant change in the number of firms
affected by this rule.
According to the U.S. Department of Agriculture's (USDA) National
Agricultural Statistics Service's (NASS) 2017 Census of Agriculture,
the number of operations in the United States with cattle totaled
882,692.\1\ The most recent (2017) Census of Agriculture data show that
roughly 4 percent of producers with cattle, or 31,601 operations, have
annual receipts of $1,000,000 or more.\2\ Therefore, the vast majority
of cattle producers, 96 percent, would be considered small businesses
with the new SBA guidance. It should be noted that producers are only
indirectly impacted by the proposed rule.
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\1\ https://www.nass.usda.gov/AgCensus/index.php.
\2\ https://quickstats.nass.usda.gov/results/EC7DF8E2-6791-347F-BC4F-3F81988D7DDB.
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Cattle, beef, and veal importers are directly impacted by the
proposed rule. The original number of importing firms was determined in
consultation with the Meat Import Council of America (MICA). AMS
estimates that approximately 270 firms that import beef or beef
products, and veal and veal products into the United States, and about
198 firms that import live cattle into the United States. The 2012
Economic Census, produced by the U.S. Commerce Department, and
accessible through the American Fact Finder website, provides the most
recent data on firm size by sales revenue.\3\ However, data on the firm
size of beef, veal, and cattle importers are not available in this or
other economic databases, as there is no NAICS code specific enough for
this industry segment.
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\3\ https://factfinder.census.gov.
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The 2012 Economic Census does have information on the broader
marketing chain, specifically the size distribution of meat and meat
product wholesalers (NAICS 42447).\4\ These data show that 18 percent
of firms in the industry classification of meat and meat product
wholesalers are now considered small businesses under the new size
standard.
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\4\ Source: U.S. Census Bureau, 2012 Economic Census, Search
code EC1242SSSZ1_with_ann.
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Recent import trade data was also considered for understanding the
overall dynamics of this industry segment. The Foreign Agricultural
Service reports monthly trade data for traded agricultural products by
product type. An analysis of these data over a five-year period show
only minor changes in the annual import values for both beef and veal
importers and cattle importers, suggesting little change in the sector
overall.
This direct final rule imposes no significant burden on the
industry. Importers are already required to pay assessments. This
action merely updates HTS codes in the Order that USITC has changed for
imported cattle, beef, veal, and beef products. Accordingly, AMS has
determined that this action does not have a significant impact on a
substantial number of small entities.
USITC periodically updates HTS codes. Since USITC updates HTS on a
regular basis, AMS routinely amends 7 CFR 1260.172(b) to incorporate
the updated HTS codes for imported cattle, beef, veal, and beef product
into the Order so that importers know what beef products are assessed
and their respective assessment rates.
List of Subjects in 7 CFR Part 1260
Administrative practice and procedure, Advertising, Agricultural
research, Imports, Marketing agreement, Meat and meat products,
Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, AMS amends 7 CFR part
1260 as follows:
PART 1260--BEEF PROMOTION AND RESEARCH
0
1. The authority citation for 7 CFR part 1260 continues to read as
follows:
Authority: 7 U.S.C. 2901-2911 and 7 U.S.C. 7401.
0
2. Amend Sec. 1260.172 by revising paragraph (b)(2) to read as
follows:
Sec. 1260.172 Assessments.
* * * * *
(b) * * *
(2) The assessment rates for imported cattle, beef, veal, beef
products, are as follows:
Table 1 to Paragraph (b)(2)--Imported Live Cattle
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Assessment
HTS code rate per head
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0102.21.0010............................................ $1.00
0102.21.0020............................................ 1.00
0102.21.0030............................................ 1.00
0102.21.0050............................................ 1.00
0102.29.2011............................................ 1.00
0102.29.2012............................................ 1.00
0102.29.4024............................................ 1.00
0102.29.4028............................................ 1.00
0102.29.4034............................................ 1.00
0102.29.4038............................................ 1.00
0102.29.4054............................................ 1.00
0102.29.4058............................................ 1.00
0102.29.4062............................................ 1.00
0102.29.4064............................................ 1.00
0102.29.4066............................................ 1.00
0102.29.4068............................................ 1.00
0102.29.4072............................................ 1.00
0102.29.4074............................................ 1.00
0102.29.4082............................................ 1.00
0102.29.4084............................................ 1.00
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Table 2 to Paragraph (b)(2)--Imported Beef and Beef Products
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Assessment
HTS code rate per kg
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0201.10.0510............................................
0201.10.0590............................................ .01431558
0201.10.1010............................................ .00379102
0201.10.1090............................................ .01431558
0201.10.5010............................................ .00379102
0201.10.5090............................................ .01431558
0201.20.0200............................................ .00511787
0201.20.0400............................................ .00530743
0201.20.0600............................................ .00511787
0201.20.1000............................................ .00379102
0201.20.3000............................................ .00530743
0201.20.5015............................................ .00511787
0201.20.5025............................................ .01431558
0201.20.5035............................................ .00379102
0201.20.5045............................................ .00379102
0201.20.5055............................................ .00379102
[[Page 827]]
0201.20.5065............................................ .00379102
0201.20.5075............................................ .00379102
0201.20.5085............................................ .00379102
0201.20.8090............................................ .00379102
0201.30.0200............................................ .00379102
0201.30.0400............................................ .00379102
0201.30.0600............................................ .00530743
0201.30.1000............................................ .00511787
0201.30.3000............................................ .00379102
0201.30.5015............................................ .00530743
0201.30.5025............................................ .00511787
0201.30.5035............................................ .02090075
0201.30.5045............................................ .00511787
0201.30.5055............................................ .00511787
0201.30.5065............................................ .00511787
0201.30.5075............................................ .00511787
0201.30.5085............................................ .00511787
0201.30.8090............................................ .00511787
0202.10.0590............................................ .00511787
0202.10.1010............................................ .01431558
0202.10.1090............................................ .00379102
0202.10.5010............................................ .01431558
0202.10.5090............................................ .00370102
0202.20.0200............................................ .01431558
0202.20.0400............................................ .00379102
0202.20.0600............................................ .00530743
0202.20.1000............................................ .00511787
0202.20.3000............................................ .00379102
0202.20.5025............................................ .00530743
0202.20.5035............................................ .00511787
0202.20.5045............................................ .00379102
0202.20.5055............................................ .00379102
0202.20.5065............................................ .00379102
0202.20.5075............................................ .00379102
0202.20.5085............................................ .00379102
0202.20.8000............................................ .00379102
0202.30.0200............................................ .00530743
0202.30.0400............................................ .00511787
0202.30.0600............................................ .00527837
0202.30.1000............................................ .00530743
0202.30.3000............................................ .00511787
0202.30.5015............................................ .02090075
0202.30.5025............................................ .00511787
0202.30.5035............................................ .00511787
0202.30.5045............................................ .00511787
0202.30.5055............................................ .00511787
0202.30.5065............................................ .00511787
0202.30.5075............................................ .00511787
0202.30.5085............................................ .00511787
0202.30.8000............................................ .00379102
0206.10.0000............................................ .00379102
0206.21.0000............................................ .00379102
0206.22.0000............................................ .00379102
0206.29.0000............................................ .00379102
0210.20.0000............................................ .00615701
1601.00.4010............................................ .00473877
1601.00.4090............................................ .00473877
1601.00.6020............................................ .00473877
1602.50.0500............................................ .00771610
1602.50.0720............................................ .00663428
1602.50.0740............................................ .00663428
1602.50.0800............................................ .00663428
1602.50.2120............................................ .00701388
1602.50.2140............................................ .00701388
1602.50.6000............................................ .00720293
------------------------------------------------------------------------
* * * * *
Dated: December 20, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2019-28058 Filed 1-7-20; 8:45 am]
BILLING CODE 3410-02-P
