[Federal Register Volume 63, Number 246 (Wednesday, December 23, 1998)]
[Rules and Regulations]
[Pages 70990-70994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33921]
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DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration
7 CFR Part 800
RIN 0580-AA66
Fees for Official Inspection and Weighing Services
AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.
ACTION: Final rule.
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SUMMARY: The Grain Inspection, Packers and Stockyards Administration
(GIPSA) is increasing fees for certain official inspection and weighing
services it performs in the United States under the U.S. Grain
Standards Act. This action is needed to recover increased operational
costs resulting from the average 3.6 percent January 1999 cost-of-
living increase to Federal salaries. The ``average 3.6 percent
increase'' is a combination of a 3.1 percent across-the-board increase
and increases in locality pay rates for Federal salaries. An average
3.6 percent increase is implemented for all hourly rates and certain
unit rates on tests performed at both an applicant's facility and other
than an applicant's facility. In addition, an average increase of 1.2
percent is implemented to recover the salary and benefits portion of
the administrative tonnage fee.
EFFECTIVE DATE: February 1, 1999.
FOR FURTHER INFORMATION CONTACT: George Wollam, USDA, GIPSA, ART, 1400
Independence Avenue, SW, Stop 3649, Washington, DC 20250-3649, or
telephone (202) 720-0292.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be nonsignificant for the purpose
of Executive Order 12866 and, therefore, has not been reviewed by the
Office of Management and Budget.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This action is not intended to have a retroactive
effect. The USGSA provides in Sec. 87g that no subdivision may require
or impose any requirements or restrictions concerning the inspection,
weighing, or description of grain under the Act. Otherwise, this rule
will not preempt any State or local laws, regulations, or policies
unless they present irreconcilable conflict with this rule. There are
no administrative procedures which must be exhausted prior to any
judicial challenge to the provisions of this final rule.
Effects on Small Entities
James R. Baker, Administrator, GIPSA, has determined that this
final rule will not have a significant economic impact on a substantial
number of small entities as defined in the Regulatory Flexibility Act
(5 U.S.C. 601 et seq.). Most users of GIPSA inspection and weighing
services do not meet the requirements for small entities. GIPSA is
required by statute to make services available and to recover costs of
providing such services, as nearly as practicable.
These fee revisions are primarily applicable to entities engaged in
the export of grain. Under provisions of the USGSA, most grain exported
from U.S. export port locations must be officially inspected and
weighed. Mandatory inspection and weighing services are provided by
GIPSA on a fee basis at 37 export facilities. All of the export
facilities are owned and managed by multi-national corporations, large
cooperatives, or public entities that do not meet the criteria for
small entities as defined under the Regulatory Flexibility Act and the
regulations issued thereunder. Some users of the service who request
non-mandatory official inspection and weighing services (most of which
represent appeals) at other than export locations could be considered
small entities. However, these fee increases merely reflect the cost-
of-living increases in Federal salaries for hourly, certain unit fees,
and
[[Page 70991]]
that portion of the administrative tonnage fee.
In fiscal year 1998, GIPSA's obligations were $23,021,166 with
revenue of $21,776,323, resulting in a loss of $1,244,843 and retained
earnings of $55,862. GIPSA cannot absorb the approximate 3.6 percent
increase in salary costs with the existing retained earnings.
Additionally, GIPSA will continue to monitor its costs to improve
operating efficiencies, and adopt cost saving measures, where possible
and practicable.
The increase in fees will not have a significant impact on either
small or large entities. GIPSA estimates an annual increase of $500,000
in revenue based on a work volume of 72,491,134 metric tons, the
equivalent to fiscal year 1998.
Information Collection and Recordkeeping Requirements
In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection and recordkeeping requirements
in Part 800 have been previously approved by the Office of Management
and Budget under control number 0580-0013.
Background
On October 2, 1998, GIPSA published in the Federal Register (63 FR
52987) a proposal to increase certain fees it charges under the USGSA.
The USGSA requires GIPSA to charge and collect reasonable fees for
performing official inspection and weighing services. The fees are to
cover, as nearly as practicable, GIPSA's costs for performing these
services, including related administrative and supervisory costs.
The fee increases generate the additional revenue required to
recover operational costs created by a January 1999 cost-of-living
increase in Federal salaries. The average salary increase for GIPSA
employees in calendar year 1999 is approximately 3.6 percent. This
action is being taken to ensure that the service fees charged by GIPSA
generate adequate revenue to cover the additional costs created by the
January 1999 Federal salary increase.
The previous USGSA fees were published in the Federal Register on
June 16, 1998 (63 FR 32713), and became effective on July 1, 1998. In
addition, GIPSA published a revised fee schedule on June 30, 1998 (63
FR 35502), effective July 1, 1998, to establish fees for corn oil,
protein, and starch testing services. The hourly fees covered by this
rule will generate revenue to cover the basic salary, benefits, and
leave for those employees providing direct service delivery. The
current hourly fees are:
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Monday to Monday to Saturday,
Friday (6 a.m. Friday (6 p.m. Sunday, and Holidays
to 6 p.m.) to 6 a.m.) overtime
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1-year contract................................. $24.40 $26.40 $34.40 $41.40
6-month contract................................ 26.80 28.60 36.60 47.80
3-month contract................................ 30.60 31.60 39.80 49.40
Noncontract..................................... 35.40 37.40 45.40 55.80
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GIPSA has also identified certain unit fees, for services not
performed at an applicant's facility, that contain direct labor costs.
Further, GIPSA has identified those costs associated with salaries and
benefits that are covered by the administrative metric tonnage fee. The
3.6 percent cost-of-living increase to salaries and benefits covered by
the administrative tonnage fee results in an average overall increase
of an average of 1.2 percent to the administrative tonnage fee. Other
associated costs, including non-salary related overhead, are collected
through the fees contained in the fee schedule and are not included
under this rule.
The amount of revenue collected as a result of this rule is a
direct function of the work volume. GIPSA estimates an increase of
$500,000 in revenue based on a work volume of 72,491,134 metric tons,
the equivalent to fiscal year 1998. If GIPSA foregoes this adjustment,
GIPSA will incur a net loss equivalent to approximately the 3.6 percent
increase in salaries for every hour paid to an employee.
In fiscal year 1998, GIPSA's obligations were $23,021,166 with
revenue of $21,776,323, resulting in a loss of $1,244,843 and retained
earnings of $55,862. GIPSA cannot afford to absorb an additional
$500,000 loss due to the approximate 3.6 percent increase in salary
costs with the existing deficit in retained earnings. Additionally,
GIPSA will continue to monitor its costs to improve operating
efficiencies, and adopt cost saving measures, where possible and
practicable.
Comment Review
GIPSA received four comments during the 60-day comment period. All
four were in opposition to the fee increase. Two comments were from
grain trade associations representing grain, feed and processing
companies: one commented that it is not correct to conclude that cost
of living increases in Federal salaries should be automatically passed
on to users of the official system. This comment went on to state that
the 3.6 percent increase in Federal salaries was an average increase
nationally (national average cost-of-living adjustments with local pay
differentials) and questioned whether the Agency would reach a 3.6
percent increase in salaries at export locations. The second comment
opposed the proposed fee increase because the increase represented a
continuation in the escalation of the cost of official services and
because GIPSA was simply passing on increased costs to users of the
official system without first relying on cost saving measures and
improved efficiencies to offset the anticipated increase in Federal
salaries. The comment stated that the impact of the increase would be
felt primarily by exporters and that the fee increase would raise the
cost of exporting U.S. grains and oilseeds. Both comments stressed that
a variety of cost savings measures and other efficiencies should be
undertaken by GIPSA, including terminating, reducing or consolidating
current programs; continuing to reduce staff; accelerating efforts to
automate official services; seeking ways to introduce more flexible
work rules for official personnel; improving the quality and
consistency of its services; and allocating more costs to others in the
grain and oilseed sector that derive benefits from the official system.
Two comments were from individuals not associated with the grain
industry. They commented that government's involvement in agriculture
adds to the
[[Page 70992]]
cost for agriculture operations. The comments went on to say that the
increase in Federal salaries should not be paid for by the proposed fee
increase, but should be created from sources of funds within the
federal program. Some suggestions given were a reduction in force,
reduction in travel and/or training, and reduction in procurement of
major items.
GIPSA is required by the USGSA to recover its costs for providing
inspection and weighing services by establishing reasonable fees to
cover their estimated costs. The projection of a 3.6 percent increase
in federal salaries is a national average of all salary and benefit
increases. The ``average 3.6 percent increase'' is a combination of a
3.1 percent across-the-board increase and increases in locality pay
rates for Federal salaries. This average represents a fair and
reasonable percentage that is consistent with the provisions of the
USGSA concerning the establishment of fees. Further, GIPSA has
conducted numerous cost saving measures in the past few years, early
retirements, field office consolidations, and reduction in travel and
training. GIPSA will continue to monitor its costs to improve operating
efficiencies, and adopt cost saving measures, where possible and
practicable. Absorbing the approximate 3.6 percent salary increase is
impractical considering the extremely low retained earnings of $55,862.
Savings derived from further efficiencies will be used to rebuild the
retained earnings to a 3-month operating reserve or an estimated $5.7
million.
Final Action
GIPSA is applying an approximate 3.6 percent increase to those
hourly rates, certain unit rates, and an average 1.2 percent increase
to the administrative tonnage fee in 7 CFR 800.71, Table 1--Fees for
Official Services Performed at an Applicant's Facility in an Onsite
GIPSA Laboratory; Table 2--Services Performed at Other Than an
Applicant's Facility in a GIPSA Laboratory; and Table 3, Miscellaneous
Services.
In reviewing the fee schedule to identify fees that will require an
approximate 3.6 percent increase, GIPSA has identified several fees
that, under the current fee schedule, are at levels that will not
require any change. Accordingly, these fees will remain the same at
this time.
List of Subjects in 7 CFR Part 800
Administrative practice and procedure, Grain.
For the reasons set out in the preamble, 7 CFR Part 800 is amended
as follows:
PART 800--GENERAL REGULATIONS
1. The authority citation for Part 800 continues to read as
follows:
Authority: Pub. L. 94-582, 90 Stat. 2867, as amended (7 U.S.C.
71 et seq.).
2. Section 800.71 is amended by revising Schedule A in paragraph
(a) to read as follows:
Sec. 800.71 Fees assessed by the Service.
(a) * * *
Schedule A.--Fees for Official Inspection and Weighing Services
Performed in the United States
Table 1.--Fees for Official Services Performed at an Applicant's Facility in an Onsite FGIS Laboratory \1\
Monday to Monday to Saturday,
Friday (6 a.m Friday (6 p.m. Sunday, and Holidays
to 6 p.m.) to 6 a.m.) overtime \2\
(1) Inspection and Weighing Services Hourly Rates (per service representative)
1-year contract................................. $25.20 $27.20 $35.40 $42.60
6-month contract................................ 27.60 29.40 37.60 49.40
3-month contract................................ 31.60 32.60 41.00 51.00
Noncontract..................................... 36.60 38.60 46.80 57.60
(2) Additional Tests (cost per test, assessed in addition to the
hourly rate) \3\
(i) Aflatoxin (other than Thin Layer Chromatography).... $8.50
(ii) Aflatoxin (Thin Layer Chromatography method)....... 20.00
(iii) Corn oil, protein, and starch (one or any
combination)........................................... 1.50
(iv) Soybean protein and oil (one or both).............. 1.50
(v) Wheat protein (per test)............................ 1.50
(vi) Sunflower oil (per test)........................... 1.50
(vii) Vomitoxin (qualitative)........................... 7.50
(viii) Vomitoxin (quantitative)......................... 12.50
(ix) Waxy corn (per test)............................... 1.50
(x) Fees for other tests not listed above will be based
on the lowest noncontract hourly rate..................
(xi) Other services
(a) Class Y Weighing (per carrier)
(1) Truck/container............................. .30
(2) Railcar..................................... 1.25
(3) Barge....................................... 2.50
(3) Administrative Fee (assessed in addition to all other applicable
fees, only one administrative fee will be assessed when inspection and
weighing services are performed on the same carrier)
(i) All outbound carriers (per-metric-ton) \4\
(a) 1-1,000,000..................................... $0.1014
(b) 1,000,001-1,500,000............................. 0.0925
(c) 1,500,001-2,000,000............................. 0.0500
(d) 2,000,001-5,000,000............................. 0.0370
(e) 5,000,001-7,000,000............................. 0.0200
(f) 7,000,000-...................................... 0.0090
\1\ Fees apply to original inspection and weighing, reinspection, and
appeal inspection service and include, but are not limited to,
sampling, grading, weighing, prior to loading stowage examinations,
and certifying results performed within 25 miles of an employee's
assigned duty station. Travel and related expenses will be charged for
service outside 25 miles as found in Sec. 800.72 (a).
\2\ Overtime rates will be assessed for all hours in excess of 8
consecutive hours that result from an applicant scheduling or
requesting service beyond 8 hours, or if requests for additional
shifts exceed existing staffing.
\3\ Appeal and reinspection services will be assessed the same fee as
the original inspection service.
\4\ The administrative fee is assessed on an accumulated basis beginning
at the start of the Service's fiscal year (October 1 each year).
[[Page 70993]]
Table 2.--Services Performed at Other than an Applicant's Facility in an
FGIS Laboratory \1\ \2\
(1) Original Inspection and Weighing (Class X) Services
(i) Sampling only (use hourly rates from Table 1)
(ii) Stationary lots (sampling, grade/factor, &
checkloading)
(a) Truck/trailer/container (per carrier)....... $18.10
(b) Railcar (per carrier)....................... 27.60
(c) Barge (per carrier)......................... 174.35
(d) Sacked grain (per hour per service
representative plus an administrative fee per
hundredweight) (CWT)........................... 0.02
(iii) Lots sampled online during loading (sampling
charge under (i) above, plus):
(a) Truck/trailer container (per carrier)....... 9.85
(b) Railcar (per carrier)....................... 19.10
(c) Barge (per carrier)......................... 108.10
(d) Sacked grain (per hour per service
representative plus an administrative fee per
hundredweight) (CWT)........................... 0.02
(iv) Other services
(a) Submitted sample (per sample--grade and
factor)........................................ 10.60
(b) Warehouseman inspection (per sample)........ 17.60
(c) Factor only (per factor--maximum 2 factors). 4.60
(d) Checkloading/condition examination (use
hourly rates from Table 1, plus an
administrative fee per hundredweight if not
previously assessed) (CWT)..................... 0.02
(e) Reinspection (grade and factor only.
Sampling service additional, item (i) above)... 11.60
(f) Class X Weighing (per hour per service
representative)................................ 48.00
(v) Additional tests (excludes sampling)
(a) Aflatoxin (per test--other than TLC method). 25.60
(b) Aflatoxin (per test--TLC method)............ 101.60
(c) Corn oil, protein, and starch (one or any
combination)................................... 8.10
(d) Soybean protein and oil (one or both)....... 8.10
(e) Wheat protein (per test).................... 8.10
(f) Sunflower oil (per test).................... 8.10
(g) Vomitoxin (qualitative)..................... 26.10
(h) Vomitoxin (quantitative).................... 31.10
(i) Waxy corn (per test)........................ 9.35
(j) Canola (per test--00 dip test).............. 9.35
(k) Pesticide Residue Testing \3\
(1) Routine Compounds (per sample).......... 200.00
(2) Special Compounds (per service
representative)............................ 100.00
(l) Fees for other tests not listed above will
be based on the lowest noncontract hourly rate
from Table 1.
(2) Appeal inspection and review of weighing service.\4\
(i) Board Appeals and Appeals (grade and factor).... 76.60
(a) Factor only (per factor--max 2 factors)..... 39.60
(b) Sampling service for Appeals additional
(hourly rates from Table 1)
(ii) Additional tests (assessed in addition to all
other applicable fees)
(a) Aflatoxin (per test, other than TLC)........ 25.85
(b) Aflatoxin (TLC)............................. 111.10
(c) Corn oil, protein, and starch (one or any
combination)................................... 15.85
(d) Soybean protein and oil (one or both)....... 15.85
(e) Wheat protein (per test).................... 15.85
(f) Sunflower oil (per test).................... 15.85
(g) Vomitoxin (per test--qualitative)........... 36.10
(h) Vomitoxin (per test--quantitative).......... 41.10
(i) Vomitoxin (per test--HPLC Board Appeal)..... 128.00
(j) Pesticide Residue Testing \3\
(1) Routine Compounds (per sample).......... 200.00
(2) Special Compounds (per service
representative)............................ 100.00
(k) Fees for other tests not listed above will
be based on the lowest noncontract hourly rate
from Table 1.
(iii) Review of weighing (per hour per service
representative).................................... 69.60
(3) Stowage examination (service-on-request) \3\
(i) Ship (per stowage space)........................ 50.50 (minimum
$275 per ship)
(ii) Subsequent ship examinations (same as original)
(minimum $175 per ship)
(iii) Barge (per examination)....................... 40.50
(iv) All other carriers (per examination)........... 15.50
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\1\ Fees apply to original inspection and weighing, reinspection, and
appeal inspection service and include, but are not limited to,
sampling, grading, weighing, prior to loading stowage examinations,
and certifying results performed within 25 miles of an employee's
assigned duty station. Travel and related expenses will be charged for
service outside 25 miles as found in Sec. 800.72 (a).
\2\ An additional charge will be assessed when the revenue from the
services in Schedule A, Table 2, does not cover what would have been
collected at the applicable hourly rate as provided in Sec. 800.72
(b).
\3\ If performed outside of normal business, 1-1/2 times the applicable
unit fee will be charged.
\4\ If, at the request of the Service, a file sample is located and
forwarded by the Agency for an official agency, the Agency may, upon
request, be reimbursed at the rate of $2.50 per sample by the Service.
[[Page 70994]]
Table 3.--Miscellaneous Services \1\
(1) Grain grading seminars (per hour per service
representative) \2\.................................... $48.00
(2) Certification of diverter-type mechanical samplers
(per hour per service representative) \2\.............. 48.00
(3) Special weighing services (per hour per service
representative): \2\
(i) Scale testing and certification................. 48.00
(ii) Evaluation of weighing and material handling
systems............................................ 48.00
(iii) NTEP Prototype evaluation (other than Railroad
Track Scales)...................................... 48.00
(iv) NTEP Prototype evaluation of Railroad Track
Scales (plus usage fee per day for test car)....... 48.00
110.00
(v) Mass standards calibration and reverification... 48.00
(vi) Special projects............................... 48.00
(4) Foreign travel (per day per service representative). 435.00
(5) Online customized data EGIS service:
(i) One data file per week for 1 year............... 500.00
(ii) One data file per month for 1 year............. 300.00
(6) Samples provided to interested parties (per sample). 2.50
(7) Divided-lot certificates (per certificate).......... 1.50
(8) Extra copies of certificates (per certificate)...... 1.50
(9) Faxing (per page)................................... 1.50
(10) Special mailing (actual cost).
(11) Preparing certificates onsite or during other than
normal business hours (use hourly rates from Table 1).
\1\ Any requested service that is not listed will be performed at $48.00
per hour.
\2\ Regular business hours--Monday thru Friday--service provided at
other than regular hours charged at the applicable overtime hourly
rate.
* * * * *
Dated: December 17, 1998.
James R. Baker,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 98-33921 Filed 12-22-98; 8:45 am]
BILLING CODE 3410-EN-P