Notice2022-12795
2022/2023 Rates Charged for AMS Services
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 14, 2022
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
The Agricultural Marketing Service (AMS) is announcing the 2022/2023 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, rice, and cotton and tobacco. The 2022/2023 regular, overtime, holiday, and laboratory services rates will be applied at the beginning of the crop year, fiscal year or as required by law 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. This year, cost-based analyses indicated the need to increase user fee rates in certain cases where current rates are insufficient to cover the costs of providing the service. While cost-saving measures have and will continue to be implemented, user fee rate increases are necessary to offset rising operational costs. In cases where current rates are sufficient to cover the costs of providing the service, user fee rates remain unchanged.
Full Text
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<title>Federal Register, Volume 87 Issue 114 (Tuesday, June 14, 2022)</title>
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[Federal Register Volume 87, Number 114 (Tuesday, June 14, 2022)]
[Notices]
[Pages 35956-35962]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-12795]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[Doc. No. AMS-AMS-22-0018]
2022/2023 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
2022/2023 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, rice, and cotton and tobacco. The
2022/2023 regular, overtime, holiday, and laboratory services rates
will be applied at the beginning of the crop year, fiscal year or as
required by law 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. This year, cost-based analyses indicated the need to increase
user fee rates in certain cases where current rates are insufficient to
cover the costs of providing the service. While cost-saving
[[Page 35957]]
measures have and will continue to be implemented, user fee rate
increases are necessary to offset rising operational costs. In cases
where current rates are sufficient to cover the costs of providing the
service, user fee rates remain unchanged.
DATES: June 15, 2022.
FOR FURTHER INFORMATION CONTACT: Melissa Bailey, Associate
Administrator, AMS, USDA, Room 2036-S, 1400 Independence Ave. SW,
Washington, DC 20250; telephone (202) 205-9356, or email
<a href="/cdn-cgi/l/email-protection#b2dfd7dedbc1c1d39cd0d3dbded7cbf2c7c1d6d39cd5ddc4"><span class="__cf_email__" data-cfemail="6f020a03061c1c0e410d0e06030a162f1a1c0b0e41080019">[email protected]</span></a>.
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 U.S. 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). On the basis of rates
calculated using these formulas, AMS is to determine the fee rates
necessary to sustain program services. 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 2022/2023 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, rice, 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. Fee rates will be
effective at the beginning of the fiscal year, crop year, or as
required by specific laws.
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 or
other specifications; 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 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
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.
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.
[[Page 35958]]
2022/2023 Rates
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Includes travel
Regular Overtime Holiday costs in rate Start date
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Cotton Fees
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7 CFR Part 27--Cotton Classification Under Cotton Futures Legislation
Subpart A--Requirements; Sec. Sec. 27.80-27.90 Costs of Classification and Micronaire
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Cotton Standardization
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Certification for Futures Contract (Grading $4.25/bale X August 1, 2022.
services for samples submitted by CCC-licensed
samplers).
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Transfer of Certification Data to New Owner or $0.20/bale or $5.00 per page minimum X August 1, 2022.
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 Producers $2.50/bale X July 1, 2022.
(submitted by licensed sampler).
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Form 1 Review (new sample submitted by licensed $2.50/bale X July 1, 2022.
sampler).
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Form A Determinations (sample submitted by $2.50/bale X July 1, 2022.
licensed warehouse).
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Form C Determinations (sample submitted by non- $2.50/bale ............... July 1, 2022.
licensed entity; bale sampled under USDA
supervision).
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Form D Determination (sample submitted by owner $2.50/bale X July 1, 2022.
or agent; classification represents sample
only).
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Foreign Growth Classification (sample of $6.00/sample X August 1, 2022.
foreign growth cotton submitted by owner or
agent; classification represents sample only).
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Arbitration (comparison of a sample to the $6.00/sample X August 1, 2022.
official standards or a sample type).
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Practical Cotton Classing Exam (for non-USDA Exam: $150/applicant Reexamination: $130/ X July 1, 2022.
employees). applicant
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Special Sample Handling (return of samples per $0.50/sample X July 1, 2022.
request).
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Electronic Copy of Classification Record....... $0.05/bale ($5.00/month minimum with any X July 1, 2022.
records received)
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Form A Rewrite (reissuance of Form 1, Form A, $0.15/bale or $5.00/page minimum X August 1, 2022.
or Futures Certification data or combination).
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Form R (reissuance of Form 1 classification $0.15/bale or $5.00/page minimum X July 1, 2022.
only).
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International Instrument Level Assessment...... $4.00/sample X July 1, 2022.
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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 Service............ $90.00 $106.00 $123.00 X Oct 1, 2022.
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Continuous Resident Grading Service 6 p.m.-6 $99.00 $123.00 $135.00 X Oct 1, 2022.
a.m..
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Non-resident and Intermittent Grading Service; $110.00 $129.00 $147.00 X Oct 1, 2022.
State Graders.
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[[Page 35959]]
Non-resident Services 6 p.m.-6 a.m. (10 percent $121.00 $147.00 $162.00 X Oct 1, 2022.
night differential).
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Export Certificate Services.................... $95.00/certificate ............... Oct 1, 2022.
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Equipment Review \1\........................... $115.00 $135.00 $154.00 ............... Oct 1, 2022.
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Equipment Review 6 p.m.-6 a.m. \1\............. $126.00 $154.00 $169.00 ............... Oct 1, 2022.
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Audit Services................................. $120.00 X Oct 1, 2022.
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Special Handling............................... $47.50/certificate ............... Oct 1, 2022.
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Uncertified Copy of Certificate................ $8.00/copy ............... Oct 1, 2022.
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Derogation Application......................... $125.00/application ............... Oct 1, 2022.
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Specialty Crops Fees
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7 CFR Part 51--Fresh Fruits, Vegetables and Other Products (Inspection, Certification, and Standards)
Subpart A--Requirements; 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 Inspections for Whole $225.00 per lot ............... Oct 1, 2022.
Lots.
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Quality and Condition Half Lot or Condition- $186.00 per lot ............... Oct 1, 2022.
Only Inspections for Whole Lots.
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Condition--Half Lot............................ $172.00 per lot ............... Oct 1, 2022.
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Quality and Condition or Condition-Only $103.00 per lot ............... Oct 1, 2022.
Inspections for Additional Lots of the Same
Product.
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Dockside Inspections--Each package weighing <30 $0.044 per pkg. ............... Oct 1, 2022.
lbs..
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Dockside Inspections--Each package weighing >30 $0.068/pkg. ............... Oct 1, 2022.
lbs..
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Charge per Individual Product for Dockside $225.00/lot ............... Oct 1, 2022.
Inspection.
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Charge per Each Additional Lot of the Same $103.00/lot ............... Oct 1, 2022.
Product.
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Inspections for All Hourly Work................ $100.00 $137.00 $175.00 ............... Oct 1, 2022.
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Audit Services--Federal........................ $132.00/audit ............... Oct 1, 2022.
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Audit Services--State.......................... $132.00/audit ............... Oct 1, 2022.
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GFSI Certification Fee \2\..................... $250.00/audit ............... Oct 1, 2022.
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7 CFR Part 52--Processed Fruits and Vegetables, Processed Products Thereof, and Other Processed Food Products
Subpart A--Requirements Governing Inspection and Certification; Sec. Sec. 52.41--52.51 Fees and Charges
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Lot Inspections................................ $85.00 $112.00 $139.00 ............... Oct 1, 2022.
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In-plant Inspections Under Annual Contract $85.00 $107.00 $129.00 ............... Oct 1, 2022.
(year-round).
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Additional Graders (in-plant) or Less Than Year- $91.00 $120.00 $149.00 ............... Oct 1, 2022.
Round.
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Audit Services--Federal........................ $132.00/audit ............... Oct 1, 2022.
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Audit Services--State.......................... $132.00/audit ............... Oct 1, 2022.
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GFSI Certification Fee \2\..................... $250.00/audit ............... Oct 1, 2022.
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Meat Fees
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7 CFR Part 54--Meats, Prepared Meats, and Meat Products (Grading, Certification, and Standards)
Subpart A--Grading of Meats, Prepared Meats, and Meat Products; Sec. Sec. 54.27--54.28 Charges for Service
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Scheduled Grading.............................. $86.00 $107.00 $129.00 X Oct 1, 2022.
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Unscheduled Grading............................ $114.00 $132.00 $154.00 ............... Oct 1, 2022.
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[[Page 35960]]
Scheduled Night Differential (6 p.m.-6 a.m.)... $95.00 $118.00 $129.00 X Oct 1, 2022.
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7 CFR Part 62--Agricultural Marketing Service Audit Verification and Accreditation Programs (AVAAP)
Subpart E--Fees; Sec. 62.300 Fees and Other Costs of Service
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Auditing Activities............................ $155.00 $229.00 $238.00 ............... Oct 1, 2022.
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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
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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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Scheduled Grading.............................. $65.00 $84.00 $101.00 X Oct 1, 2022.
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Scheduled, Night Differential (6 p.m.-6 a.m.).. $71.00 $93.00 $101.00 X Oct 1, 2022.
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Scheduled, Sunday Differential................. $83.00 $107.00 N/A X Oct 1, 2022.
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Scheduled, Sunday and Night Differential....... $92.00 $118.00 N/A X Oct 1, 2022.
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Unscheduled Grading............................ $99.00 $122.00 $147.00 ............... Oct 1, 2022.
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Science and Technology Fees
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7 CFR Part 91--Services and General Information
Subpart I--Fees and Charges; Sec. Sec. 91.37-91.45
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Laboratory Testing Services.................... $110.00 $125.00 $141.00 ............... Oct 1, 2022.
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Laboratory Approval Services \1\............... $188.00 $213.00 $238.00 X Jan 1, 2023.
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7 CFR Part 75--Provisions for Inspection and Certification of Quality of Agricultural and Vegetable Seeds
Sec. 75.41 General
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Laboratory Testing............................. $62.00 $93.00 $113.00 ............... Oct 1, 2022.
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Administrative Fee............................. $15.50/certificate ............... Oct 1, 2022.
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Auditing Services.............................. $115.00/audit ............... Oct 1, 2022.
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Organization for Economic Cooperation and $0.29/100 pounds ............... July 1, 2022.
Development Seed Schemes for Corn Seeds.
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Organization for Economic Cooperation and $0.18/100 pounds ............... July 1, 2022.
Development Seed Schemes for Other Seeds.
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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--Requirements; 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 Provisions 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 and $55.00 $64.00 $72.00 ............... July 1, 2022.
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 and Certification $0.0025/pound X July 1, 2022.
(grading of domestic tobacco for manufacturers
and dealers for duty drawback consideration).
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Grading for Risk Management Agency (for Tobacco $0.015/pound X July 1, 2022.
Crop Insurance Quality Adjustment
determinations).
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[[Page 35961]]
Pesticide Test Sampling (collection of $0.0065/kg or $0.0029/pound X July 1, 2022.
certified tobacco sample and shipment to AMS
National Science Laboratory for testing).
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Pesticide Retest Sampling (collection of $115.00/sample and $55.00/hour X July 1, 2022.
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 USDA-certified $1,250.00/person ............... July 1, 2022
instructor on tobacco grading procedures).
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Import Inspection and Certification (grading of $0.0170/kg or $0.0080/pound X July 1, 2022.
imported tobacco for manufacturers and
dealers).
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Rice Fees
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7 CFR Part 868--General Regulations and Standards for Certain Agricultural Commodities
Subpart A--Regulations; Sec. Sec. 868.90-868.92 Fees
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Contract (per hour per Service representative) $56.30 $84.50 $112.60 ............... Oct 1, 2022.
\3\.
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Noncontract (per hour per Service $66.60 $99.90 $133.20 ............... Oct 1, 2022.
representative) \3\.
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Export Port Services \4\....................... $0.047/cwt ............... Oct 1, 2022.
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Inspection for quality (per lot, sublot, or
sample inspection):
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Rough rice................................. $41.80 ............... Oct 1, 2022.
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Brown rice for processing.................. $37.60 ............... Oct 1, 2022.
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Milled rice................................ $30.30 ............... Oct 1, 2022.
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Factor analysis for any single factor (per
sample):
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Milling yield (Rough or Brown rice)........ $32.00 ............... Oct 1, 2022.
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All other factors (all rice)............... $19.90/factor ............... Oct 1, 2022.
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Total oil and free fatty acid.............. $45.80 ............... Oct 1, 2022.
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Faxed and extra copies of certificates..... $1.90/copy ............... Oct 1, 2022.
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Stowage examination (service-on-request):
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Ship....................................... $38.50 (per stowage space, minimum 5 spaces ............... Oct 1, 2022.
per ship)
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Subsequent ship examinations............... $38.50 (per stowage space, minimum 3 spaces ............... Oct 1, 2022.
per ship)
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Barge...................................... $35.10/examination ............... Oct 1, 2022.
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All other carriers......................... $12.90/examination ............... Oct 1, 2022.
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Aflatoxin (Rapid Test Kit)................. $31.40/test ............... Oct 1, 2022.
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All Other Mycotoxins (Rapid Test Kit)...... $37.50/test ............... Oct 1, 2022.
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\1\ Travel costs outside the United States will be added to the fee, if applicable.
\2\ Global Food Safety Initiative (GFSI) Certification Fee--$250 per GFSI audit to recoup the costs associated with attaining technical equivalency to
the GFSI benchmarking requirements.
\3\ Original and appeal inspection services include: Sampling, grading, weighing, and other services requested by the applicant when performed at the
applicant's facility.
\4\ Services performed at export locations on lots at rest.
[[Page 35962]]
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.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2022-12795 Filed 6-13-22; 8:45 am]
BILLING CODE P
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