Tobacco inspection: Burley tobacco; moisture testing,

[Federal Register: December 2, 1999 (Volume 64, Number 231)]

[Rules and Regulations]

[Page 67469-67470]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr02de99-1]

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[[Page 67469]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 29

[Docket No. TB-99-10]

RIN 0581-AB65

Tobacco Inspection; Subpart B--Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

SUMMARY: The Agricultural Marketing Service (AMS) is amending the regulations governing permissive inspection of tobacco to provide for special tests and services requested by the industry. This regulatory change is based on a recommendation by the Burley Tobacco Advisory Committee to provide moisture testing for burley tobacco. The buying segment of the tobacco industry has requested that moisture testing be performed by AMS on all burley tobacco marketed during the 1999-2000 marketing season. These amendments will provide regulatory authority to conduct moisture testing and collect fees and charges for these services.

DATES: Effective December 3, 1999; comments received by January 31, 2000, will be considered prior to issuance of a final rule.

ADDRESSES: Send comments to John P. Duncan III, Deputy Administrator, Tobacco Programs, Agricultural Marketing Service (AMS), United States Department of Agriculture (USDA), Room 502 Annex Building, P.O. Box 96456, Washington, DC 20090-6456; or Fax: (202) 205-0235. Comments will be made available for public inspection at this location during regular business hours.

FOR FURTHER INFORMATION CONTACT: John P. Duncan III, Deputy Administrator, Tobacco Programs, AMS, USDA, Room 502 Annex Building, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 205-0567, Fax: (202) 205-0235.

SUPPLEMENTARY INFORMATION: This rule will amend the regulations governing the permissive inspection of tobacco pursuant to the provisions of the Tobacco Inspection Act (49 stat. 741, 7 U.S.C. 511 et seq.).

The Burley Tobacco Advisory Committee made a recommendation on June 10, 1999, that AMS conduct moisture testing on all burley tobacco offered for sale at designated auction markets. The recommendation was contingent on successful price negotiations between the buying segment and burley tobacco warehouse operators. The committee further recommended that tobacco marketed in an experimental unitized package be turned 90 degrees within the row as a condition of the testing process.

During the 1998-1999 marketing season, approximately 60 million pounds of burley tobacco was sold in the experimental unitized package and tested for moisture content by the warehouse operators. The unitized bale is a new experimental package consisting of an even number of traditional burley bales with one additional bale opened and evenly arranged on top which is securely bound with metal wires to form a rectangular cube.

Due to integrity issues between the buying and warehouse segments of the industry, it was recommended that a third party entity perform the moisture testing. After three months of discussions and negotiations by the buying segment and the Burley Auction Warehouse Association, representing 95 percent of burley tobacco warehouse operators, a commitment was obtained from the four major tobacco companies purchasing burley tobacco to reimburse AMS $.0020 per pound for providing moisture testing services. These testing services would be conducted on all burley tobacco, including the traditional lot consisting of a maximum of eight bales and the experimental unitized package, offered for sale at designated markets.

Accordingly, this rule will provide regulatory authority to conduct special testing services for interested parties and charge fees to recover the costs of providing the service as determined by the Deputy Administrator, Tobacco Programs.

This rule has been determined to be ``non significant'' for purposes of Executive order 12866, and therefore, has not been reviewed by the Office of Management and Budget.

This rule has been reviewed under Executive Order 12866, Civil Justice Reform. This action is not intended to have retroactive effect. This rule will not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule. There are no administrative procedures which must be exhausted prior to any judicial challenge to the provisions of this rule.

Additionally, in conformance with the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), full consideration has been given to the potential economic impact upon small business. All tobacco warehouses and producers fall within the confines of ``small business'' which are defined by the Small Business Administration (13 CFR 121.601) as those having annual receipts of less than $500,000 and small agricultural service firms are defined as those whose annual receipts are less than $3,500,000. There are approximately 190 tobacco warehouses and approximately 30,000 producers and most warehouses and producers may be classified as small entities. The Agricultural Marketing Service has determined that this action will not have a significant economic impact on a substantial number of small entities.

It is hereby found and determined upon good cause that it is impracticable, unnecessary, and contrary to the public interest to give preliminary notice prior to putting this rule into effect and that good cause exists for not postponing the effective date of this rule until 30 days after publication in the Federal Register because: (1) The 1999-2000 burley marketing season is scheduled to begin in November 1999 and this action is needed as soon as possible so that equipment may be acquired and grading personnel may be trained in its use; and (2) this interim final rule provides a 60-day comment period, and all comments timely received will be considered prior to finalization of this rule.

[[Page 67470]]

Lists of Subjects in 7 CFR Part 29

Administrative practice and procedure, Advisory committees, Government publications, Imports, Pesticides and pests, Reporting and recordkeeping requirements, Tobacco.

For the reasons set forth in the preamble, 7 CFR part 29 is amended as follows:

PART 29--TOBACCO INSPECTION

Subpart B--Regulations

1. The authority citation for part 29, subpart B continues to read as follows:

   Authority: 7 U.S.C. 511m and 511r.

2. Section 29.56 is amended by adding a sentence at the end of the section to read as follows:

   Sec. 29.56 Permissive inspection.

   * * * Special tests and services may be performed for interested persons to the extent that available facilities will permit, subject to the payment of fees as determined by the Deputy Administrator, Tobacco Programs.

3. In Sec. 29.123, a new paragraph (e) is added to read as follows:

   Sec. 29.123 Fee and charges.

   * * * * *

   (e) Fees for special tests and services will be determined by the Deputy Administrator, Tobacco Programs.

   Dated: November 26, 1999. Kathleen A. Merrigan, Administrator, Agricultural Marketing Service.

   [FR Doc. 99-31302Filed12-1-99; 8:45 am]

   BILLING CODE 3410-02-P