Federal Register Notices
[Federal Register: October 13, 2010 (Volume 75,
From the Federal Register Online via GPO Access
This section of the FEDERAL REGISTER contains
notices to the public of
the proposed issuance of rules and regulations.
The purpose of these
notices is to give interested persons an
opportunity to participate in
the rule making prior to the adoption of the
DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 6
Dairy Import Licensing Program
AGENCY: Office of the Secretary, USDA.
ACTION: Proposed rule.
SUMMARY: This proposed rule would suspend the
historical license reduction provisions of the
Dairy Import Licensing Program, 7 CFR part
6, for a period of 5 years. This temporary
suspension is intended to improve program
administration and reflect ongoing changes in
markets for cheese and other dairy products
subject to import licensing requirements.
DATES: Submit comments on or before November 12,
ADDRESSES: Address all comments concerning this
proposed rule to Ron Lord, Branch Chief, Sugar
and Dairy Branch, Import and Trade Support
Programs Division, Foreign Agricultural Service,
1400 Independence Avenue, SW., Stop 1021,
Washington, DC 20250-1021; e-mail
Ronald.Lord@fas.usda.gov; telephone (202)
720-6939; or fax (202) 720-0876. Persons with
disabilities who require an alternative means
communication of information (Braille, large
print, audiotape, etc.) should contact USDA's
Target Center at (202) 720-2600 (voice and TDD).
FOR FURTHER INFORMATION CONTACT: Ron Lord,
Branch Chief, Sugar and Dairy Branch, Import and
Trade Support Programs Division, Foreign
Agricultural Service, 1400 Independence Avenue,
SW., Stop 1021, Washington, DC 20250-1021;
(202) 720-6939; or fax (202) 720-0876.
Executive Order 12866
The proposed rule has been determined to be not significant
under E.O. 12866 and has been reviewed by the
Office of Management and
Budget. Regulatory Flexibility Act
The Regulatory Flexibility Act ensures that regulatory and
information requirements are tailored to the
size and nature of small
businesses, small organizations, and small
governmental jurisdictions. This proposed rule
will not have a significant economic impact on
businesses participating in the program.
Executive Order 12988
This proposed rule has been reviewed under Executive Order
12988. The provisions of this proposed rule
would not have a preemptive effect
with respect to any State or local laws,
regulations, or policies which conflict with
such provision or which otherwise impede their
implementation. The proposed rule would not have
a retroactive effect. Before any judicial action
may be brought forward regarding this
proposed rule, all administrative remedies must
National Environmental Policy Act
The Administrator has determined that this action will not
have a significant effect on the quality of the
human environment. Therefore,
neither an Environmental Assessment nor an
Environmental Impact Statement is necessary for
this proposed rule.
Unfunded Mandates Reform Act (Pub. L. 104-4)
Public Law 104-4 requires consultation with state and local
officials and Indian tribal governments. This
proposed rule does not
impose an unfunded mandate or any other
requirement on state, local, or tribal
governments. Accordingly, these programs are not
subject to the
provisions of the Unfunded Mandates Reform Act.
Executive Order 12630
This Order requires careful evaluation of governmental
actions that interfere with constitutionally
protected property rights. This
proposed rule would not interfere with any
property rights and, therefore, does not need to
be evaluated on the basis of the criteria
outlined in Executive Order 12630.
Government Paperwork Elimination Act
Foreign Agricultural Service (FAS) is committed to compliance
with the Government Paperwork Elimination Act,
which requires Government
agencies, in general, to provide the public the
option of submitting information or transacting
business electronically to the maximum
The proposed rule at 7 CFR part 6 would revise the Dairy
Tariff-Rate Import Quota Licensing regulation by
suspending, for a period of 5
years, the provisions with respect to the
reduction of historical licenses based on
surrenders of unused amounts. Import licensing
of the tools the U.S. Department of Agriculture
(USDA) uses to administer the tariff-rate quota
(TRQ) system for U.S. imports of dairy
products. TRQs replaced strictly quantitative
import quotas for dairy products on January 1,
1995, as a result of the Uruguay Round Agreement
on Agriculture and the Uruguay Round Agreements
Act. Under these TRQs, a low-tariff rate, called
the in-quota rate, applies to imports up to a
specified quantity. A higher tariff rate, called
the over-quota rate, applies to any imports in
excess of that amount. TRQ rates and
quantities vary by product.
For dairy products subject to TRQs, a license issued by the
FAS is generally required to import products at
the in-quota rate. No license
is required to import products at the over-quota
rate. Under the historical license reductions
provisions, the amount of
the license issued by FAS is reduced if the
importer surrenders more than 50 percent of the
license at least 3 out of 5 consecutive years.
Section 6.25(b)(1)(i) provides that beginning
with the quota year 2011, if a licensee
surrenders more than 50 percent of a historical
in at least 3 out of the 5 prior years, that
license will be permanently reduced to the
average amount entered during those 5 years.
These provisions are intended to provide a
strong incentive for companies with historical
licenses to utilize their licenses.
In 2008, the regulations were revised to suspend these
provisions for the 2009 and 2010 quota years,
thereby delaying their
implementation until 2011. The following
background statement was
included: Market conditions are always subject
to fluctuation and change, and it is incumbent
upon all license holders to adjust to these
changing conditions. Nonetheless, to allow
additional time to adjust to changes in EU's
supply and demand, due to its long-term dairy
changes, the Department will temporarily suspend
the historical license reduction provisions for
a period of 2 years, commencing in 2009.
Historical license reductions will again be
implemented beginning 2011, rather than in 2012
or 2014, as in the proposed rule.''
As the circumstances that prompted the previous suspension
continue, an additional temporary suspension is
proposed to improve
program administration and reflect ongoing
changes in the markets for cheese and other
dairy products subject to import licensing
requirements. The historical licenses provide
for orderly importation of a wide variety of
cheeses and permit companies to invest in market
development with some assurance of future
ability to provide specific types of cheese.
List of Subjects in 7 CFR Part 6
Agricultural commodities, cheese, dairy products, imports,
Reporting and recordkeeping requirements.
For the reasons described in the preamble, 7 CFR part 6 is
proposed to be amended as follows:
PART 6--IMPORT QUOTAS AND FEES
Subpart--Dairy Tariff--Rate Import Quota
1. The authority citation of part 6 subpart--Dairy
Tariff--Rate Import Quota Licensing, continues
to read as follows:
Authority: Additional U.S. Notes 6, 7, 8, 12, 14, 16-23 and
25 to Chapter 4 and General Note 15 of the
Harmonized Tariff Schedule
of the United States (19 U.S.C. 1202), Pub. L.
97-258, 96 Stat. 1051, as amended (31 U.S.C.
9701), and secs. 103 and 404, Pub. L.
103-465, 108 Stat. 4819 (19 U.S.C. 3513 and
2. Section 6.25 (b)(1) is revised to read as follows: Sec.
6.25 Allocation of licenses.
* * * * *
(b) Historical licenses for the 2011 and subsequent quota
years (Appendix 1). (1) A person issued a
historical license for the 2010
quota year will be issued a historical license
in the same amount for the same article from the
same country for the 2011 quota year and for
each subsequent quota year except that:
(i) Beginning with the quota year 2016, a person who has
surrendered more than 50 percent of such
historical license in at least
three of the prior five quota years will
thereafter be issued a license in an amount
equal to the average annual quantity entered
five quota years.
* * * * *
Dated: October 5, 2010.
Administrator, Foreign Agricultural Service.
[FR Doc. 2010-25651 Filed 10-12-10; 8:45 am]
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