Rule2022-18751
Dairy Tariff-Rate Quota Import Licensing Program
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
August 30, 2022
Effective
August 30, 2022
Issuing agencies
Agriculture DepartmentForeign Agricultural Service
Abstract
This interim final rule amends the regulations that provide for the issuance of licenses to import certain dairy articles under tariff-rate quotas (TRQs) as set forth in the Harmonized Tariff Schedule of the United States (HTSUS). The rule suspends for an additional year the historical license reduction provision which would otherwise apply beginning with the 2023 quota year. This change will allow license holders additional time to adjust to challenging market conditions impacting the dairy sector.
Full Text
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<title>Federal Register, Volume 87 Issue 167 (Tuesday, August 30, 2022)</title>
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[Federal Register Volume 87, Number 167 (Tuesday, August 30, 2022)]
[Rules and Regulations]
[Pages 52851-52852]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18751]
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Rules and Regulations
Federal Register
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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. 87, No. 167 / Tuesday, August 30, 2022 /
Rules and Regulations
[[Page 52851]]
DEPARTMENT OF AGRICULTURE
Foreign Agricultural Service
7 CFR Part 6
RIN 0551-AB03
Dairy Tariff-Rate Quota Import Licensing Program
AGENCY: Foreign Agricultural Service, USDA.
ACTION: Interim final rule; request for comments.
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SUMMARY: This interim final rule amends the regulations that provide
for the issuance of licenses to import certain dairy articles under
tariff-rate quotas (TRQs) as set forth in the Harmonized Tariff
Schedule of the United States (HTSUS). The rule suspends for an
additional year the historical license reduction provision which would
otherwise apply beginning with the 2023 quota year. This change will
allow license holders additional time to adjust to challenging market
conditions impacting the dairy sector.
DATES: Effective August 30, 2022. Send comments on or before September
29, 2022.
ADDRESSES: You may send comments, identified by [docket number and/or
RIN number], by any of the following methods:
<bullet> Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>.
Follow the instructions for sending comments.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#3b5f5a524942165257487b5d5a48154e485f5a155c544d"><span class="__cf_email__" data-cfemail="7014111902095d191c03301611035e050314115e171f06">[email protected]</span></a>. Include [docket number and/
or RIN number] in the subject line of the message.
<bullet> Mail: Dairy Import Programs, Multilateral Affairs, Trade
Policy and Geographic Affairs, Foreign Agricultural Service, United
States Department of Agriculture; 1400 Independence Avenue SW, STOP
1070; Washington, DC 20250.
<bullet> Hand Delivery/Courier: Dairy Import Programs, Multilateral
Affairs, Trade Policy and Geographic Affairs, Foreign Agricultural
Service, United States Department of Agriculture; 1400 Independence
Avenue SW, STOP 1070; Washington, DC 20250.
Instructions: All submissions received must include the agency name
and docket number or Regulatory Information Number (RIN) for this
interim final rule. Comments will be available for inspection online at
<a href="http://www.regulations.gov">www.regulations.gov</a> and at the mail address listed above between 8 a.m.
and 4:30 p.m., Monday through Friday, except holidays.
FOR FURTHER INFORMATION CONTACT: Elizabeth Riley, (202) 720 6868; or by
email at: <a href="/cdn-cgi/l/email-protection#0d486164776c6f687965237f646168744d787e696c236a627b"><span class="__cf_email__" data-cfemail="3f7a5356455e5d5a4b57114d56535a467f4a4c5b5e11585049">[email protected]</span></a>. Persons with disabilities who
require an alternative means for communication of information (e.g.,
Braille, large print, audiotape, etc.) should contact <a href="/cdn-cgi/l/email-protection#3f797e6c126d5a5e4c50515e5d535a7e5c5c505252505b5e4b5650517f4a4c5b5e11585049"><span class="__cf_email__" data-cfemail="367077651b64535745595857545a53775555595b5b595257425f5958764345525718515940">[email protected]</span></a> or Cynthia Stewart (Reasonable
Accommodation Coordinator), <a href="/cdn-cgi/l/email-protection#56352f38223e3f377825223321372422162325323778313920"><span class="__cf_email__" data-cfemail="80e3f9eef4e8e9e1aef3f4e5f7e1f2f4c0f5f3e4e1aee7eff6">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Foreign Agricultural Service (FAS),
under a delegation of authority from the Under Secretary of
Agriculture, administers the Dairy Tariff-Rate Quota Import Licensing
regulations codified at 7 CFR 6.20 through 6.36 that provide for the
issuance of licenses to import certain dairy articles under TRQs as set
forth in certain notes in Chapter 4 of the HTSUS. These dairy articles
may be entered into the United States at the low-tier tariff only by or
for the account of a person, as defined in the regulations, to whom
such licenses have been issued and only in accordance with the terms
and conditions of the regulations. Licenses are issued on a calendar
year basis and each license authorizes the licensee to import a
specified quantity and type of dairy article from a specified country
of origin.
FAS issues three types of dairy import licenses: historical, non-
historical (lottery), and designated. For all three license types,
persons must apply each year between September 1 and October 15.
Historical and designated licensees may apply for lottery licenses
subject to certain conditions. Licensees may fail to qualify for a
license for a specific item from a specific country in the following
year if they do not meet certain requirements. Licensees must (i) apply
for the license each year, (ii) pay an annual fee, and (iii) have
imported at least 85 percent of the final license amount from the
previous year. To avoid ineligibility due to the 85-percent rule,
licensees may surrender up to 100 percent of the license, but must
import 85 percent of any quantity not surrendered.
Section 6.25(b) of the regulations provides that beginning with the
2023 quota year, any historical licensee who surrenders more than 50
percent of the license amount for the same item from the same country
during at least three of the most recent five years will be issued a
historical license thereafter in an amount equal to the average amount
imported under that license for those five quota years. FAS has
suspended Sec. 6.25(b) on four previous occasions, most recently for
an additional seven years encompassing the 2016-2022 quota years.
This rule provides historical license holders additional time to
adjust to changing market conditions by suspending implementation of
Sec. 6.25(b) through the end of quota year 2023. FAS recognizes that
COVID-19 pandemic-related shipping delays have made economic conditions
difficult for several of the past years. In addition, the United States
imposed retaliatory tariffs on certain EU exports from October 2019
until June 2021, including certain dairy products, in response to the
EU's failure to implement the World Trade Organization Dispute
Settlement Body's recommendations in the dispute EC and Certain member
States--Measures Affecting Trade in Large Civil Aircraft (DS316). The
duties on dairy products, levied at 25% ad valorem, contributed to the
volatile market conditions U.S. dairy importers have recently faced.
Several dairy commodities that were subject to these retaliatory
tariffs stand to lose historical quantity if Sec. 6.25(b) is not
suspended. Overall, FAS estimates that allowing Sec. 6.25(b) to go
into effect in quota year 2023 would result in the reduction or
elimination of approximately 18% of historical licenses. In addition,
FAS analysis shows that fill rates for the lottery category for those
commodities that stand to lose the most historical licenses remain low,
when viewed over the course of the past five quota years.
[[Page 52852]]
Regulatory Analysis
Administrative Procedure Act
Pursuant to the Administrative Procedure Act (APA), notice and
comment are not required prior to the issuance of a final rule if an
agency, for good cause, finds that ``notice and public procedure
thereon are impracticable, unnecessary, or contrary to the public
interest.'' (5 U.S.C. 553(b)(B)). As discussed above, FAS has
determined that recent market events warrant suspending Sec. 6.25(b)
for quota year 2023.
To have a meaningful effect, the amendment suspending Sec. 6.25(b)
for the next quota year must take effect prior to the application
period for quota year 2023, which begins September 1, 2022, and ends on
October 15, 2022. For this reason, FAS finds good cause exists to issue
the rule without notice and comment pursuant to 5 U.S.C. 553(b)(B), and
without a delayed effective date pursuant to 5 U.S.C. 553(d)(3).
Although this rule will take immediate effect, FAS invites interested
persons to submit comments on the rule and will consider all relevant
comments when determining whether further amendments to the regulation
are needed.
Executive Order 12866
The 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 (5 U.S.C. 601 et seq.) ensures that
regulatory and information requirements are tailored to the size and
nature of small businesses, small organizations, and small governmental
jurisdictions. The Administrator certifies that this rule will not have
a significant economic impact on small businesses participating in the
program.
Executive Order 12988
This rule has been reviewed under E.O. 12988. This rule meets the
applicable standards in sections 3(a) and 3(b)(2) of E.O. 12988, Civil
Justice Reform, to minimize litigation, eliminate ambiguity, and reduce
burden. The provisions of this 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 full
implementation. This rule will not have a retroactive effect. Before
any judicial action may be brought forward regarding this rule, all
administrative remedies must be exhausted.
Executive Order 13132
FAS has reviewed this rule in accordance with E.O. 13132 regarding
federalism and has determined that it does not have ``federalism
implications.'' The rule will not ``have substantial direct effects on
the states, on the relationship between the national government and the
states, or on the distribution of power and responsibilities among the
various levels of government.''
Executive Order 13175
This rule does not have tribal implications under E.O. 13175,
Consultation and Coordination with Indian Tribal Governments, because
it does not have a substantial direct effect on one or more Indian
tribes, on the relationship between the Federal government and Indian
tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian tribes.
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 rule.
Unfunded Mandates Reform Act
This 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 (2 U.S.C. 1501 et seq.).
Executive Order 12630
This Executive Order requires careful evaluation of governmental
actions that interfere with constitutionally protected property rights.
This rule does not interfere with any property rights and, therefore,
does not need to be evaluated on the basis of the criteria outlined in
E.O. 12630.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
OMB's Office of Information and Regulatory Affairs has determined that
this is not a ``major rule'' as defined by the Congressional Review Act
(5 U.S.C. 804(2)).
List of Subjects in 7 CFR Part 6
Agricultural commodities, Dairy, Cheese, Imports, Procedural rules,
Application requirements, Tariff-rate quota, Reporting and
recordkeeping requirements.
Accordingly, for these reasons, 7 CFR part 6 is amended as follows:
PART 6--IMPORT QUOTAS AND FEES
Subpart B--Dairy Tariff-Rate Quota Import Licensing
0
1. The authority citation for subpart B 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 3601).
0
2. Amend Sec. 6.25 by revising paragraph (b) to read as follows:
Sec. 6.25 Allocation of licenses.
* * * * *
(b) Historical licenses for the 2016 and subsequent quota years
(Appendix 1). A person issued a historical license for the current
quota year will be issued a historical license in the same amount for
the same article from the same country for the next quota year except
that beginning with the 2024 quota year, a person who has surrendered
more than 50 percent of such historical license in at least three of
the prior 5 quota years will thereafter be issued a license in an
amount equal to the average annual quantity entered during those 5
quota years.
* * * * *
Daniel Whitley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2022-18751 Filed 8-25-22; 4:15 pm]
BILLING CODE 3410-10-P
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