Proposed Rule2022-21030
Process for Establishing Rates for Veterinary Services User Fees
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
October 3, 2022
Issuing agencies
Agriculture DepartmentAnimal and Plant Health Inspection Service
Abstract
We are proposing to amend the regulations concerning user fees that we charge for veterinary diagnostic services and for certain import-related and export-related services for live animals, animal products and byproducts, birds, germplasm, organisms, and vectors. We are proposing to remove the tables providing the individual fees from the regulations and post them on an Animal and Plant Health Inspection Service (APHIS) website instead. The regulations would instead specify the methodology (formula) used to calculate the fees (including imputed costs), and APHIS would update the fees using a notice-based process. Replacing the current user fee listings with a standardized methodology would increase transparency in the process of setting fee rates, align the regulations with other Departmental practices, and allow us to streamline processes and reduce the number of rules needed in order to update the fees.
Full Text
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[Federal Register Volume 87, Number 190 (Monday, October 3, 2022)]
[Proposed Rules]
[Pages 59731-59740]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21030]
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Proposed Rules
Federal Register
________________________________________________________________________
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 final rules.
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Federal Register / Vol. 87, No. 190 / Monday, October 3, 2022 /
Proposed Rules
[[Page 59731]]
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
9 CFR Part 130
[Docket No. APHIS-2021-0052]
RIN 0579-AE67
Process for Establishing Rates for Veterinary Services User Fees
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Proposed rule.
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SUMMARY: We are proposing to amend the regulations concerning user fees
that we charge for veterinary diagnostic services and for certain
import-related and export-related services for live animals, animal
products and byproducts, birds, germplasm, organisms, and vectors. We
are proposing to remove the tables providing the individual fees from
the regulations and post them on an Animal and Plant Health Inspection
Service (APHIS) website instead. The regulations would instead specify
the methodology (formula) used to calculate the fees (including imputed
costs), and APHIS would update the fees using a notice-based process.
Replacing the current user fee listings with a standardized methodology
would increase transparency in the process of setting fee rates, align
the regulations with other Departmental practices, and allow us to
streamline processes and reduce the number of rules needed in order to
update the fees.
DATES: We will consider all comments that we receive on or before
December 2, 2022.
ADDRESSES: You may submit comments by either of the following methods:
<bullet> Federal eRulemaking Portal: Go to <a href="http://www.regulations.gov">www.regulations.gov</a>.
Enter APHIS-2021-0052 in the Search field. Select the Documents tab,
then select the Comment button in the list of documents.
<bullet> Postal Mail/Commercial Delivery: Send your comment to
Docket No. APHIS-2021-0052, Regulatory Analysis and Development, PPD,
APHIS, Station 3A-03.8, 4700 River Road, Unit 118, Riverdale, MD 20737-
1238.
Supporting documents and any comments we receive on this docket may
be viewed at <a href="http://www.regulations.gov">www.regulations.gov</a> or in our reading room, which is
located in room 1620 of the USDA South Building, 14th Street and
Independence Avenue SW, Washington, DC. Normal reading room hours are 8
a.m. to 4:30 p.m., Monday through Friday, except holidays. To be sure
someone is there to help you, please call (202) 799-7039 before coming.
FOR FURTHER INFORMATION CONTACT: Ms. Lisa Slimmer, User Fee Financial
Team Manager, Veterinary Services Money Management, 920 Main Campus
Drive, Raleigh, NC 27606; (919) 855-7253.
SUPPLEMENTARY INFORMATION:
Background
The regulations covering user fees to reimburse the U.S. Department
of Agriculture's (USDA's) Animal and Plant Health Inspection Service
(APHIS) for the costs of providing veterinary diagnostic services and
import/export related services for live animals, animal products and
byproducts, birds, germplasm, organisms, and vectors are contained in 9
CFR part 130 (referred to below as the regulations or the user fee
regulations). These user fees are authorized by section 2509(c) of the
Food, Agriculture, Conservation, and Trade Act of 1990, as amended (21
U.S.C. 136a(c)), which provides that the Secretary of Agriculture may,
among other things, prescribe regulations and collect fees to recover
the costs of providing import/export related services for animals,
animal products and byproducts, birds, germplasm, organisms, and
vectors, and for veterinary diagnostics relating to the control and
eradication of communicable diseases of livestock or poultry within the
United States.
Since fiscal year (FY) 1992, APHIS has received no directly
appropriated funds to cover the cost of certain veterinary diagnostics
or to provide import/export related services for animals, animal
products and byproducts, birds, germplasm, organisms, and vectors. Our
ability to provide these services depends on user fees. User fees
associated with providing services for live animal, animal product,
bird, and germplasm imports and exports fund, among other things,
quarantine services, the processing of import permit applications, port
of entry inspections, inspections and approvals of import/export
facilities and establishments, endorsements of export certificates, and
services related to emergency situations that arise during the export
or import process.
The work of veterinary diagnostics is performed in a laboratory to
determine if a disease-causing organism or chemical agent is present in
body tissues or cells and, if so, to identify those organisms or
agents. Services in this category include, among other things,
performing laboratory (identification, serology, and pathobiology)
tests and providing diagnostic reagents and other veterinary diagnostic
materials and services. The National Veterinary Services Laboratories
provide diagnostic goods and services.
User fees recover the cost of operating a public system by charging
those members of the public who use the system, rather than the public
as a whole, for its operation. Financing certain veterinary diagnostic
and import/export related services and products by directly charging
the users of those services internalizes those costs to those who
require the service and benefit from it.
In the past, APHIS' rulemaking established user fee rates for 5-
year periods of time. Individual fees would typically adjust annually
and were specific to given fiscal years. The rulemaking process is
lengthy and so, to establish 5 years of fees at one time, APHIS
Veterinary Services (VS) had to forecast customer needs and Agency
costs 6 to 7 years into the future. Even though VS based its cost
estimates on the best data available, such forecasting has proven
difficult, and we have found these long-range estimates unreliable for
setting fees to recover the costs of providing desired goods and
services without over- or undercharging our customers. For example, the
user fee rates established in 2011 and 2012 used the best available
data during 2009 for those years and did not anticipate the high level
of investment in information technology that would be needed to
[[Page 59732]]
meet customer demand to conduct business with VS in the coming decade.
In order to provide both transparency and predictability to the
industries served and to allow VS to effectively plan for staffing,
investments in infrastructure, and other resources, we are proposing to
remove specific user fees from the regulations and establish a
standardized methodology by which VS will calculate fees annually. VS
would post the fee rates on <a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a>. (Please note that this site does not yet exist; it would be
developed should this rule be finalized.) The components (costs) APHIS
would use to calculate the fee rates would be the same components
currently used to calculate rates, with the addition of imputed costs.
These imputed costs include U.S. Department of Labor, U.S. Office of
Personnel Management, and the U.S. Department of State (State
Department) costs to provide retirement, health, life insurance,
worker's compensation, legal defense, and other benefits to the Agency
and employees who provide the services covered by the fees. In
accordance with the Office of Management and Budget (OMB) Circular A-
25, User Charges, APHIS must compensate the Treasury General fund for
these costs, so they are not borne by the taxpayer. Accordingly, to
comply with OMB Circular A-25, we must include imputed costs in our
calculations.
Under the proposed approach, APHIS would update its fees each
calendar year. Each year, prior to the beginning of the following
calendar year, APHIS would propose actual fee rates through publication
of a notice in the Federal Register. The annual notice would provide
information regarding the basis for any fee change, including cost of
living, information technology investment, facilities capital
requirements, and inflation rates. We would also describe any cost-
saving measures the agency is undertaking. The notices would take
public comment. Following the comment period, we would issue a
subsequent (final) notice providing the final rates. This notice would
respond to any comments received on the initial notice. When the final
notice is issued, APHIS would update the fee rates found at
<a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a>.
This approach would reduce the number of regulations published for
user fee rate setting. It would, also, shorten the time required to
update user fees for these services and products, provide greater
transparency to our customers concerning the way in which we derive our
user fees, avoid financial crises that may occur when APHIS does not
collect sufficient funds, reduce the potential of APHIS collecting
funds over the amounts needed to cover costs, and ensure user fees
cover the full APHIS cost to provide a given service (as intended by
these types of fees).
At this time, we are not proposing to adjust the fee rates through
this rulemaking. However, we anticipate that, since APHIS' import/
export and veterinary diagnostics user fees have not been updated for
more than 10 years, there will be a change in the fees when APHIS
applies this new approach and issues our first notice in the Federal
Register under the approach. These changes would be the result of using
current economic data, staff processing time, increased complexity of
work, and cost estimates to calculate the fees; current import/export
and veterinary diagnostics fees are based on data from FY 2012 and FY
2011, respectively.
Finally, it should be noted that the proposed change in the method
by which we update our user fees and the removal of user fee tables
from the regulations in favor of maintaining a listing of specific user
fee rates online at <a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a>
would not affect the table of overtime rates currently found in Sec.
130.50(b)(3)(i) charged in addition to certain flat rate user fees. The
user fees listed in that paragraph merely reproduce those found in 9
CFR 97.1(a) to improve ease of use for regulated entities and
individuals. These rates impact other entities within APHIS and are
adjusted periodically through separate rulemaking.
Development of Formulas
The components (costs) we would use to calculate user fee rates are
the same costs used in calculating past rates with the exception of
imputed costs, which are discussed in detail below:
Comparison of Current Versus Proposed Components
[Costs]
------------------------------------------------------------------------
Current charges Proposed charges
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Direct labor......................... Direct pay (on-board and in the
hiring process, and including
benefits), Cost of living.
Local support........................ Direct operating costs (travel,
training, equipment, rent,
facility maintenance, supplies
and materials, service
contracts, information
technology system operations,
maintenance, and development),
Consumer price index.
Program and Agency support........... Department, Agency, and Program
support.
Departmental charges................. Department support.
Reserve.............................. Imputed costs (new)
Reserve.
------------------------------------------------------------------------
We calculate our user fees to cover the full cost of providing the
services for which we charge the fee. The cost of providing a service
includes these components, which are described in more detail below. In
addition, in proposed Sec. 130.1, we are adding the following terms
and their definitions in order to provide additional clarity: Consumer
price index, cost of living, direct operating costs, direct pay
(including benefits), imputed costs, reserve, program, agency, and
department support.
We are proposing to add consumer price index (CPI) to read as the
measure of the average change over time in prices paid by urban
consumers for a market basket of consumer goods and services. This
would be determined by the Bureau of Labor Statistics (BLS), and APHIS
would use BLS' annual average for the CPI.\1\
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\1\ The CPI is not calculated by the program, it can be found
using the following link: <a href="https://www.bls.gov/cpi/news.htm">https://www.bls.gov/cpi/news.htm</a>.
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We are proposing to add cost of living to read as the adjusted
annual rate used to determine the cost of maintaining a certain
standard of living based on the economic assumptions in OMB's
Presidential Economic Assumptions (PEA). The PEA outlines the economic
assumptions undergirding the
[[Page 59733]]
President's budget for a particular fiscal year, and includes several
projections related to cost of living, including anticipated inflation
rates and consumer price indices.
We are proposing to add direct operating costs to the definitions.
The term would include: Travel and transportation for personnel;
materials, supplies and other necessary items; training; general office
supplies; rent; facility maintenance; equipment purchase and
maintenance; utilities; contractual services; and information
technology systems operations, maintenance, and development costs.
Materials and supplies include items like animal food and bedding,
chemicals, and medicine as well as materials needed to conduct
laboratory tests.
Within direct operating costs, rent and facility maintenance are
the costs of using the space we need to perform veterinary diagnostic
services or import- or export-related work. If space is used for
veterinary diagnostic services or import- or export-related work and
other Agency work, only that portion of the costs associated with the
veterinary diagnostic services or import- or export-related work is
included in the user fees. Equipment purchases and maintenance costs
include repair and replacement of existing equipment, in addition to
purchase of new equipment, and are necessitated when issues arise.
Maintenance may also be determined by recurring maintenance schedules
for existing equipment. Utilities include water, telephone,
electricity, and heating costs. Contractual services include security
service, maintenance, trash pickup, and similar services. Finally, a
number of information technology systems support APHIS' import/export
and veterinary diagnostics services. There are annual costs with
operating and maintaining those systems as well as development costs to
enhance and add new features that support import/export and veterinary
diagnostic services. The type, amount, and cost of direct operating
costs vary with the type of good or service provided.
We are proposing to add direct pay (including benefits) to read as
the wage labor costs (on board and in the hiring process), including
benefits, for employees who specifically support and provide the
required service. For example, at APHIS' Animal Import Centers, animal
caretakers and veterinarians prepare for the arrival of animals or
birds to be quarantined in the center, care for them (provide feed and
water, clean cages or stalls) while they are quarantined, observe them
while they are quarantined, release them from quarantine, and clean the
quarantine area afterwards. If the service is inspecting an animal, the
direct pay costs include the time spent by the inspector to conduct the
inspection. Direct pay also includes the wage labor costs, including
benefits, of employees providing direct administrative support in the
field for these activities such as those who assist with the review of
export documents and those who complete and process billing paperwork.
The costs vary with the type of service provided and with the pay rate
of the employee who performs the service and support.
We are adding a definition for imputed costs that would read Office
of Workers' Compensation costs from the Department of Labor; costs of
employee leave earned in a prior fiscal year and used in the current
fiscal year; Office of Personnel Management and State Department costs
to provide retirement, health, and life insurance benefits to
employees; unemployment compensation costs; and Department of Justice
judgment fund costs.
APHIS will forward to the Department of Treasury (U.S. Treasury)
fee revenue collected based on imputed costs of other Agencies. APHIS
will not retain that revenue. These costs were previously paid at the
Agency level but must now be included in user fee calculation in
accordance with OMB Circular, A-25 ``User Charges,'' and Federal
Accounting Standards Advisory Board (FASAB) Statement of Federal
Financial Accounting Standards, Number 55, ``Amending Inter-entity Cost
Provisions.''
We are adding a definition of Program, Agency, and Department
support to read indirect or direct costs of the program, including
supporting services provided to the industry. Agency and Department
support costs are calculated as a pro-rata share of total direct labor
and direct operating costs and are added to each fee. Agency and
Department support costs include the costs of providing budget and
accounting services, information technology services, regulatory
services, investigative and enforcement services, debt-management
services, personnel services, public information services, legal
services, working with Congress, and other general program and agency
management services provided above the local level.
We are adding a definition for reserve to read funds above expected
obligations that are required to effectively manage uncertainties in
demand and timing to ensure sufficient operating funds in cases of bad
debt, customer insolvency, fluctuations in activity volumes,
information technology development costs, cash flow, facilities capital
needs, or fluctuations in activity volumes caused by unforeseen global
and national events.
All user fees would contribute to the reserve proportionately. The
more a program depends on fees to fund its activities, the more
vulnerable it is to revenue instability. Fully funded fee programs do
not necessarily see a proportional decline in costs when there is a
drop in collections. The reserve would ensure that we have sufficient
operating funds in cases of bad debt, customer insolvency, information
technology development costs, cash flow, facilities capital needs, or
fluctuations caused by unforeseen global and national events.
The reserve component would be estimated as follows: At the time
annually when we would calculate our proposed user fee rates, we would
estimate cash flow needs, as we currently do, by estimating 25 percent
or 90 days of annual expenditures, whichever is greater. We would then
forecast information technology and facilities capital needs and
investments, including any major purchases or improvement of equipment
or systems, for the next 5 fiscal years, and assign an estimated date
at which we anticipate these costs to be actualized. Based on the
expected date of cost actualization within that 5-year forecast, we
would add a prorated component of that cost to the above cash flow
needs. Finally, this sum would be offset by the existing amount in the
reserve, and the difference calculated into each user fee.
Reserve levels would be set at a level meant to reflect the
forecasted needs, as articulated above, but would be monitored and
adjusted annually as needs or costs change. We intend to closely
monitor the operations and operating environment including demand,
costs changes, administrative policies, investment needs and the
economic environment closely and propose adjustments, as needed, in our
fees annually to ensure an adequate reserve balance.
We are also proposing to remove a number of definitions from the
regulations because, based on the revisions we are proposing, the terms
themselves would no longer appear in part 130. Specifically, we are
proposing to remove: Approved establishment, biosecurity level three
laboratory, breeding animal, domestic animal, game cock, grade animal,
load, miniature horse, nonstandard care and handling, nonstandard
housing,
[[Page 59734]]
registered animal, slaughter animal, State animal health official, zoo
animal, zoo bird, zoo equine. To the extent that the terms would still
be used on tables that would now appear on APHIS' website, the terms
would be annotated accordingly on the website to explain what they
mean, instead.
Proposed Formulas for User Fees
VS user fees are collected for activities and products that fall
into four broad categories: Supervision and inspection services;
housing; export health certificates; and veterinary diagnostic services
and reagents. As stated previously, the regulations would specify the
methodology used to calculate and implement the fees charged by VS
user-funded programs. APHIS would publish the fee rates on its website,
and it will publish a notice on an annual basis in the Federal Register
to propose changes to the user fee rates.
Direct pay, direct operating costs, and most costs used in the
formulas would be based on the prior fiscal year's (or applicable
accounting period or historical data) actual costs and hours.
Currently, some fees are charged on a per unit basis and others are
charged on a per hour basis. To maintain consistency, APHIS would
continue to provide fees based on a per hour and per unit basis as
currently specified.
The steps we would use to generate new fees are:
1. APHIS would prorate the total inspection, certification, or
laboratory service program personnel direct pay (adjusted for vacancies
and including benefits) for the previous fiscal year to each fee based
upon the direct time factor percentage of employee's time to perform
and complete each fee code process and then multiply by the next year's
percentage of cost of living increase.
2. APHIS would prorate total direct operating costs for the
previous fiscal year based upon the direct time factor percentage of
employee's time to perform and complete each fee code process to each
fee and then multiply by the anticipated percentage of inflation for
the next year.
3. APHIS would add estimates for Program, Agency, and Department
support costs, imputed costs, and reserve by applying a percentage
based on information from Program, Agency, and Department officials and
the U.S. Treasury to the sum of the direct pay plus operating costs.
4. Steps 1-3 would be added and then we would create the new base
fee rate by rounding up to the next $0.25 for all fees less than $10 or
round up or down to the nearest dollar for all fees greater than $10.
Fees calculated using this approach would cover inflation and
national and locality pay raises but would not support any new
budgetary initiative. In the event of any such budgetary changes, such
as the OMB Circular's, A-25 ``User Charges'' (requiring inclusion of
imputed costs into user fee calculations), we would include an
explanation of the new cost component and the method by which it is
determined in the annual notice.
The foregoing would be the general formula that we would use in
order to calculate the fees. However, we do recognize that there are
some fees for which the formula would not be germane.
For any category of fees, if there is no identifiable volume in the
previous year for the service provided by the fee, if the fee is rarely
charged, or if we cannot readily identify level of effort, we would
calculate the fee based on the last available historic data that
encompasses multiple instances of use and add any intervening
inflation, program and support costs, imputed costs, and reserve.
Fees for the exclusive use of space in animal import centers
currently found in Sec. 130.3 are unique and would be calculated
somewhat differently. APHIS would calculate the fees using direct
employees average time (with benefits), and then adding a prorated
portion of currently identifiable expenses (facilities, rent, support
cost, and admin support costs), program and support expenses, imputed
costs, and reserve. These costs are combined to determine the monthly
cost of providing the service within the animal import center. The
costs of different spaces within the Animal Import Center are
calculated based on the square footage of the location.
Miscellaneous Change
Removal of the specific tables of user fees from the regulations in
favor of listing them online at <a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a> necessitates reorganization of the text currently found in
Sec. Sec. 130.2 through 130.51. In some cases, the only text in a
given section is a reference to the table and would therefore need to
be removed. In other cases, extra stipulations and clarifying
information would be retained but reorganized in light of the
streamlined regulations; however, the information presented remains the
same.
Executive Order 12866 and Regulatory Flexibility Act
This proposed rule has been determined to be not significant for
the purposes of Executive Order 12866 and, therefore, has not been
reviewed by the Office of Management and Budget.
In accordance with the Regulatory Flexibility Act, we have analyzed
the potential economic effects of this action on small entities. The
analysis is summarized below. Copies of the full analysis are available
by contacting the person listed under FOR FURTHER INFORMATION CONTACT
or on the <a href="http://Regulations.gov">Regulations.gov</a> website (see ADDRESSES above for instructions
for accessing <a href="http://Regulations.gov">Regulations.gov</a>).
APHIS Veterinary Services (VS) is proposing to amend the
regulations in 9 CFR part 130 to provide for a set of standardized
formulas by which import/export and veterinary diagnostic user fees
would be calculated. The proposed regulations would specify the
methodology used to calculate and implement the user fees and would
remove tables showing specific fees. VS would instead post the fee
rates on its website and annually issue a notice providing all fees
calculated for the upcoming year using formulas contained in the
regulations and request public comment.
VS charges user fees to recover the costs of inspection and
certification services for imports and exports of live animals and
animal products and byproducts and for providing veterinary diagnostic
goods and services. VS does not receive appropriated funding to support
these activities.
While we do not expect the proposed rule to result in cost savings
for affected entities, the proposed methodology would provide a
transparent, streamlined approach to user fee calculations. The change
to annual fee revisions using formula-based calculations based on
previous year costs would enable APHIS to avert potential funding
shortfalls. Increased confidence that rate adjustments would closely
match revenue requirements would benefit financial planning by both the
private sector and the Agency.
The component costs that VS would use to calculate user fee
revisions would be the same as at present, with the exception of
imputed labor costs, such as:
<bullet> Direct pay (including benefits)
<bullet> Cost of living
<bullet> Direct operating costs (travel, training, equipment, rent,
facility maintenance, supplies and materials, service contracts)
<bullet> Consumer price index
[[Page 59735]]
<bullet> Program, Agency, and Department support costs
<bullet> Reserve
<bullet> Imputed costs
The user fee rates would also include imputed labor costs to ensure
that the full cost of providing user fee services is captured. Imputed
labor costs include Department of Labor, Office of Personnel
Management, and State Department costs to provide retirement, health,
life insurance and other benefits to employees.
The annual regularity of the proposed VS user fee revisions would
be in contrast to current circumstances. At present, VS establishes
fees for 5 years at a time through rulemaking, and this process can be
lengthy. VS has had to project costs 6 to 7 years into the future,
which can result in unforeseen funding needs not being accounted for.
For example, VS did not anticipate the high level of technological
investment that has been necessary in order to meet the needs of
customers.
APHIS' animal health import and export user fees cover significant
activities across the country, including at border locations and
quarantine facilities. These fees support personnel, brick and mortar
facilities, and information technology systems. The veterinary
diagnostic user fees support activity at the National Veterinary
Services Laboratories facilities in Ames, IA, and Plum Island, NY.
The last rate increase went into effect October 2012 and import/
export user fee revenue has been flat, on average, since 2015, at $44
million. Veterinary diagnostic user fee revenue has also been flat at
$6 million, on average, since the last veterinary diagnostic user fee
rate increase went into effect October 2011. The cost of providing
services has continued to increase.
USDA's Agricultural and Marketing Service and Food Safety and
Inspection Service have recently implemented noticed-based processes
for annual user fee revisions that are very similar to the APHIS
proposed process. The two agencies and their stakeholders have
benefited from increased program efficiency and transparency.
A large number of the entities that would benefit from this rule
are small. The import/export user fees provide for inspection and other
services at the ports or point of entry. Users of these services and
products include importers, exporters, non-APHIS veterinarians,
commercial laboratories and pharmaceutical manufacturers, State
laboratories, universities, and foreign governments.
The Small Business Administration (SBA) \2\ has established
guidelines for determining which entities are to be considered small.
Importers and exporters of live animals are identified within the
broader wholesaling trade sector of the U.S. economy. A firm primarily
engaged in wholesaling animals or animal products and byproducts is
considered small if it employs not more than 100 persons. These
entities either sell goods on their own account (import/export
merchants) or arrange for the sale of goods owned by others (import/
export agents and brokers).
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\2\ Data Sources: Economic Census, Small Business
Administration, APHIS Veterinary Service.
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Veterinary testing laboratories are identified within the broader
veterinary services trade sector. A firm providing veterinary services
is considered small if it generates $6.5 million or less in annual
sales. The criterion for a small pharmaceutical manufacturing firm is
one with 750 or fewer employees.
The number of entities that use VS diagnostic services and
materials and qualify as small by SBA standards has not yet been
determined. However, more than 91 percent of the firms in the NAICS
Livestock Wholesale category and Other Farm Product Raw Material
Wholesale category can be considered small. In addition, more than 99
percent of veterinary services firms (including veterinary diagnostic
testing laboratories) are small.
Under these circumstances, the Administrator of the Animal and
Plant Health Inspection Service has determined that this action will
not have a significant economic impact on a substantial number of small
entities.
Executive Order 12372
This program/activity is listed in the Catalog of Federal Domestic
Assistance under No. 10.025 and is subject to Executive Order 12372,
which requires intergovernmental consultation with State and local
officials. (See 2 CFR chapter IV.)
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. If this proposed rule is adopted: (1) All State
and local laws and regulations that are inconsistent with this rule
will be preempted; (2) no retroactive effect will be given to this
rule; and (3) administrative proceedings will not be required before
parties may file suit in court challenging this rule.
Paperwork Reduction Act
This proposed rule contains no new information collection or
recordkeeping requirements under the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.).
List of Subjects in 9 CFR Part 130
Animals, Birds, Diagnostic reagents, Exports, Imports, Poultry and
poultry products, Quarantine, Reporting and recordkeeping requirements,
Tests.
Accordingly, we propose to revise 9 CFR part 130 to read as
follows:
PART 130--USER FEES
Sec.
130.1 Definitions.
130.2 Basis for fees and rates.
130.3 Operating details.
130.4 Hourly rate and minimum user fees.
130.5 Exemptions.
130.6 Payment of user fees.
130.7 Penalties for nonpayment or late payment.
Authority: 5 U.S.C. 5542; 7 U.S.C. 1622 and 8301-8317; 21 U.S.C.
136 and 136a; 31 U.S.C. 3701, 3716, 3717, 3719, and 3720A; 7 CFR
2.22, 2.80, and 371.4.
Sec. 130.1 Definitions.
As used in this part, the following terms shall have the meaning
set forth in this section.
Administrator. The Administrator of the Animal and Plant Health
Inspection Service, or any person authorized to act for the
Administrator.
Animal. All animals except birds, but including poultry.
Animal and Plant Health Inspection Service (APHIS). The Animal and
Plant Health Inspection Service of the United States Department of
Agriculture.
Animal Import Center. Quarantine facilities operated by APHIS in
Newburgh, New York, and Miami, Florida.
APHIS representative. An individual, including, but not limited to,
an animal health technician or veterinarian, authorized by the
Administrator to perform the services for which the user fees in this
part are charged.
Bird. Any member of the class aves, other than poultry.
Consumer price index. The measure of the average change over time
in prices paid by urban consumers for a market basket of consumer goods
and services, as determined by the Bureau of Labor Statistics annually.
Cost of living. The adjusted annual rate used to determine the cost
of maintaining a certain standard of living based on the economic
assumptions in the Office of Management and Budget's Presidential
Economic Assumptions.
Diagnostic reagent. Substances used in diagnostic tests to detect
disease
[[Page 59736]]
agents or antibodies by causing an identifiable reaction.
Direct operating costs. Costs attributed to travel and
transportation for personnel; materials, supplies, and other necessary
items; training; general office supplies; rent; facility maintenance;
equipment purchase and maintenance; utilities; contractual services;
and information system operations, maintenance, and development.
Direct pay (including benefits). The wage labor costs (on board and
in the hiring process), including benefits, for employees who
specifically support and provide the required service.
Equine. Any horse, ass, mule, or zebra.
Export health certificate. An official document that, as required
by the importing country, is endorsed by an APHIS representative and
states that animals, animal products, organisms, vectors, or birds to
be exported from the United States were found to be healthy and free
from evidence of communicable diseases and pests.
Feeder animal. Any animal imported into the United States under
part 93 of this chapter for feeding.
Germplasm. Semen, embryos, or ova.
Import compliance assistance. Services provided to an importer
whose shipment arrives at a port of entry without the necessary
paperwork or with incomplete paperwork and who requires assistance to
meet the requirements for entry into the United States. Fees for import
compliance assistance are charged in addition to the flat rate user
fees.
Imputed costs. Office of Workers' Compensation costs from the
Department of Labor; costs of employee leave earned in a prior fiscal
year and used in the current fiscal year; Office of Personnel
Management and Department of State (State Department) costs to provide
retirement, health, and life insurance benefits to employees;
unemployment compensation costs; and Department of Justice judgment
fund costs.
In-bond animal. Any animal imported into the United States under a
United States Customs Service bond, as described in 19 CFR part 113.
National Veterinary Services Laboratories (NVSL). The National
Veterinary Services Laboratories of the Animal and Plant Health
Inspection Service, located in Ames, Iowa.
National Veterinary Services Laboratories, Foreign Animal Disease
Diagnostic Laboratory (FADDL). The National Veterinary Services
Laboratories, Foreign Animal Disease Diagnostic Laboratory, located in
Greenport, New York.
Person. An individual, corporation, partnership, trust,
association, or any other public or private entity, or any officer,
employee, or agent thereof.
Pet birds. Birds, except hatching eggs and ratites, that are
imported or exported for the personal pleasure of their individual
owners and are not intended for resale.
Poultry. Chickens, doves, ducks, geese, grouse, guinea fowl,
partridges, pea fowl, pheasants, pigeons, quail, swans, and turkeys.
Privately operated permanent import-quarantine facility. Any
permanent facility approved under part 93 of this chapter to quarantine
animals or birds, except facilities operated by APHIS.
Program, Agency, and Department support. Indirect or direct costs
of the program, including supporting services provided to the industry.
Reserve. Funds above expected obligations that are required to
effectively manage uncertainties in demand and timing to ensure
sufficient operating funds in cases of bad debt, customer insolvency,
fluctuations in activity volumes, information technology development
costs, cash flow, facilities capital needs, or fluctuations in activity
volumes caused by unforeseen global and national events.
Standard feed. Seed, or dry feeds such as dog food or monkey
biscuits, whether soaked in water or not.
Test. A single analysis performed on a single specimen from an
animal, animal product, commercial product, or animal feed.
United States. The several States of the United States, the
District of Columbia, Guam, the Commonwealth of the Northern Mariana
Islands, the Commonwealth of Puerto Rico, the Virgin Islands of the
United States, and all other territories and possessions of the United
States.
Sec. 130.2 Basis for fees and rates.
(a) Except as set forth in paragraphs (b) through (d) of this
section, for setting fee rates for each calendar year based upon the
previous fiscal year, APHIS will calculate the rates for services as
follows:
(1) APHIS will prorate the total inspection, certification, or
laboratory service program personnel direct pay (on board and in hiring
process including benefits) for the previous fiscal year to each fee
based upon the direct time factor percentage of employee's average time
to perform and complete each fee code process and then multiply by the
next year's percentage of cost of living increase.
(2) APHIS will prorate total direct operating costs for the
previous fiscal year based upon the direct time factor percentage of
employee's average time to perform and complete each fee code process
to each fee and then multiply by the anticipated percentage of
inflation for the next year.
(3) APHIS will add estimates for Program, Agency, and Department
support costs, imputed costs, and reserve by applying a percentage
based on information from Program, Agency, and Department officials and
the Department of Treasury to the sum of the direct pay plus direct
operating costs.
(4) The amounts derived via the process described in paragraphs (a)
through (c) of this section will be added and then APHIS will round up
to the next $0.25 for all fees less than $10 or round up or down to the
nearest dollar for all fees greater than $10 to develop the new rate
for each code.
(b) If there is no identifiable volume in the previous year for the
service provided by the fee, if the fee is rarely charged, or if APHIS
cannot readily identify level of effort, APHIS will calculate the fee
based on the last available historic data encompassing multiple
instances of use and add any intervening inflation, overhead and
support costs, imputed costs, and reserve.
(c) Fees for the exclusive use of space in animal import centers
will be calculated using the following formula:
(1) APHIS will calculate fees by using direct employee average time
(with benefits) and adding a prorated portion of currently identifiable
expenses (facilities, rent, support cost, and admin support costs),
program and support expenses, imputed costs, and reserve.
(2) APHIS will combine the costs to determine the monthly cost of
providing the service at a single location within the animal import
center.
(3) APHIS will calculate the costs of the other locations within
the animal import center based on the square footage of the location.
(d) Services listed in Sec. 130.4 will be charged an hourly rate-
based user fee in accordance with the provisions of that section.
Sec. 130.3 Operating details.
(a) General standards. (1) User fee rates may be found online at
<a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a> or by contacting
<a href="/cdn-cgi/l/email-protection#f7bbb6beb2b782849396d9909881"><span class="__cf_email__" data-cfemail="f8b4b9b1bdb88d8b9c99d69f978e">[email protected]</span></a>. Changes in rates will be proposed annually in the
following manner:
[[Page 59737]]
(i) APHIS will propose changes to the fee rates found at
<a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a> through publication of
a notice in the Federal Register. The notice will provide information
regarding the basis for any fee change and will take public comment.
(ii) Following the comment period, APHIS will issue a subsequent
notice in the Federal Registerproviding the final rates. The notice
will respond to comments received on the initial notice.
(iii) When this subsequent notice is issued, APHIS will update the
fee rates found at <a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a>
accordingly.
(2) The person for whom the service is provided and the person
requesting the service are jointly and severally liable for payment of
user fees in accordance with this section.
(b) User fees for individual animals and certain birds quarantined
in the APHIS-owned or--operated quarantine facilities, including APHIS
Animal Import Centers. (1) Each user fee is assessed per animal or bird
quarantined by APHIS. Special requirements may be requested by the
importer or required by an APHIS representative. Certain conditions or
traits, such as pregnancy or aggression, may necessitate special
requirements for certain birds or poultry.
(2) For any animal or bird that requires a diet other than standard
feed, including but not limited to diets of fruit, insects, nectar, or
fish, the importer must either provide feed or pay for it on an actual
cost basis, including the cost of delivery to the APHIS owned or
operated Animal Import Center or quarantine facility.
(c) User fees for exclusive use of space at APHIS Animal Import
Centers. (1) An importer may request to exclusively occupy a space at
an APHIS Animal Import Center. Any importer who occupies space for more
than 30 days must pay 1/30th of the 30-day fee for each additional day
or part of a day.
(2) Unless the importer cancels the reservation for exclusive use
of space in time to receive a refund of the reservation fee in
accordance with Sec. Sec. 93.103, 93.204, 93.304, 93.404, or 93.504 of
this chapter, as appropriate, the 30-day user fee will be effective as
of the first day for which the importer has reserved the space,
regardless of whether the user occupies the space on that date or not.
(3) Users must provide APHIS personnel at the Animal Import Center,
at the time they make a reservation for quarantine space, with the
following information:
(i) Species of animals and birds to be quarantined;
(ii) Ages of animals and birds to be quarantined; and
(iii) Sizes of animals and birds to be quarantined.
(4)(i) APHIS personnel at the Animal Importer Center will
determine, based on the information provided by the importer under
paragraph (b)(3) of this section, and on routine husbandry needs, the
maximum number of animals and birds permitted in the requested
building.
(ii) If APHIS personnel at the Animal Import Center determine the
number of animals and birds requested by the importer can be housed in
the space requested, but two animal health technicians cannot fulfill
the routine husbandry needs of the number of animals or birds proposed
by the importer, then the importer must either:
(A) Pay for additional services on an hourly basis; or
(B) Reduce the number of animals or birds to be quarantined to a
number which APHIS personnel at the Animal Import Center determine can
be handled by two animal health technicians.
(iii) If the importer requests additional services, then APHIS will
calculate the user fees for any service rendered by an APHIS
representative at the hourly rate user fee found online at
<a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a> for each employee
required to perform the service.
(iv) The importer must either provide feed or pay for it on an
actual cost basis, including the cost of delivery to the APHIS owned or
operated Animal Import Center or quarantine facility, for any animal or
bird that requires a diet other than standard feed, including but not
limited to diets of fruit, insects, nectar, or fish.
(d) User fees for inspection of live animals at land border ports
along the United States-Canada border. If a service must be conducted
on a Sunday or holiday or at any other time outside the normal tour of
duty of the employee, then reimbursable overtime, as provided for in
part 97 of this chapter, must be paid for each service, in addition to
the user fee found online at <a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a>.
(e) User fees for pet birds. (1) Based on the information provided
to APHIS personnel, APHIS personnel at the Animal Import Center or
other APHIS owned or supervised quarantine facility will determine the
appropriate number of birds that should be housed per isolette.
(2) If the importer requests additional services, then APHIS will
calculate the user fees for those services at the hourly rate user fee
found online at <a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a> for
each employee required to perform the service.
(f) User fees for endorsing export certificates. (1) User fees for
the endorsement of export health certificates that require the
verification of tests or vaccinations are found online at
<a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a>. APHIS will calculate
the user fees to apply to each export health certificate endorsed \1\
for animals and birds based on the number of animals or birds covered
by the certificate and the number of tests or vaccinations required.
However, there will be a maximum user fee of 12 times the hourly rate
user fee.
\1\ An export health certificate may need to be endorsed for an
animal being exported from the United States if the country to which
the animal is being shipped requires one. APHIS endorses export
health certificates as a service.
(2) If an export certificate covers more than one animal, but the
number of tests required for different animals are not the same, the
user fee for the certificate is the fee which would be due if all the
animals on the certificate required the same number of tests as the
animal which requires the greatest number of tests.
(3) The user fees referenced in this section will not apply to an
export health certificate if:
(i) An APHIS veterinarian prepares the certificate for endorsement
completely at the site of the inspection in the course of performing
inspection or supervision services for the animals listed on the
certificate; and
(ii) An APHIS user fee is payable under Sec. 130.4 for the
inspection or supervision services performed by the veterinarian.
(4) If a service must be conducted on a Sunday or holiday or at any
other time outside the normal tour of duty of the employee, then
reimbursable overtime, as provided for in part 97 of this chapter, must
be paid for each service, in addition to the user fee listed in this
section.
(g) User fees for inspection services outside the United States.
(1) If inspection services (including inspection, testing, and
supervision services) are performed outside the United States, in
accordance with this title, and the regulations do not contain a
provision for payment of the cost of the service, the person requesting
the service must pay a user fee.
(2) Any person who wants APHIS to provide inspection services
outside the
[[Page 59738]]
United States must contact the Animal and Plant Health Inspection
Service, Veterinary Services, Strategy and Policy, Live Animal Imports
at <a href="/cdn-cgi/l/email-protection#226e636b6762575146430c454d54"><span class="__cf_email__" data-cfemail="3c707d75797c494f585d125b534a">[email protected]</span></a>, to make an agreement.
(3) All agreements for inspection services outside the United
States must include:
(i) Name, mailing address, and telephone number of either the
person requesting the inspection services, or his or her agent;
(ii) Explanation of inspection services to be provided, including
the regulations in this chapter which provide for the services;
(iii) Date(s) and time(s) the inspection services are to be
provided;
(iv) Location (including street address) where inspection services
are to be provided;
(v) An estimate of the actual cost, as calculated by APHIS, to
provide the described inspection services for 6 months;
(vi) A statement that APHIS agrees to provide the inspection
services;
(vii) A statement that the person requesting the inspection
services, or, if appropriate, his or her agent, agrees to pay, at the
time the agreement is entered into, a user fee equal to the estimated
cost of providing the described inspection services for 6 months; and
(viii) A statement that the person requesting the inspection
services, or, if appropriate, his or her agent, agrees to maintain a
user fee payment account equal to the cost of providing the described
inspection services for 6 months, as calculated monthly by APHIS.
(4) APHIS will enter into an agreement only if qualified personnel
can be made available to provide the inspection services.
(5) An agreement can be terminated by either party on 30 days
written notice.
(6) If, at the time an agreement is terminated, any unobligated
funds remain in the user fee payment account, APHIS will refund the
funds to the person who requested the inspection services, or his or
her agent.
Sec. 130.4 Hourly rate and minimum user fees.
(a) Services subject to hourly rate user fees. User fees for
import- or export-related veterinary services listed in paragraphs
(a)(1) through (18) of this section, except those services covered by
flat rate user fees, will be calculated at the hourly rate found online
at <a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a>, for each employee
required to perform the service. The person for whom the service is
provided and the person requesting the service are jointly and
severally liable for payment of these user fees in accordance with
Sec. Sec. 130.6 and 130.7.
(1) Providing services to live animals for import or entry at
airports, ocean ports, and rail ports.
(2) Conducting inspections, including inspections of laboratories
and facilities (such as biosecurity level two facilities), required
either to obtain import permits for animal products and byproducts,
aquaculture products, or organisms or vectors, or to maintain
compliance with import permits. This hourly rate does not apply to
inspection and approval of import/export facilities and establishments.
(3) Obtaining samples required to be tested, either to obtain
import permits or to ensure compliance with import permits.
(4) Providing services for imported birds or ratites that are not
subject to quarantine, such as monitoring birds--including but not
limited to pet birds--between flights.
(5) Supervising the opening of in-bond shipments.
(6) Providing services for in-bond or in-transit animals to exit
the United States.
(7) Inspecting an export isolation facility and the animals in it.
(8) Supervising animal or bird rest periods prior to export.
(9) Supervising loading and unloading of animals or birds for
export shipment.
(10) Inspecting means of conveyance used to export animals or
birds.
(11) Conducting inspections under part 156 of this chapter.
(12) Inspecting and approving an artificial insemination center or
a semen collection center or the animals in it.
(13) Import or entry services for feeder animals including, but not
limited to, feeder goats and feeder bison not covered by a flat rate
user fee in connection with activities described in Sec. 130.3(d).
(14) Export-related bird banding for identification.
(15) Export-related inspection and approval of pet food facilities,
including laboratories that perform pet food testing.
(16) Export-related services provided at animal auctions.
(17) Various export-related facility inspections, including, but
not limited to, fertilizer plants that utilize poultry waste, rendering
plants, and potential embarkation facilities.
(18) Providing other import-or export-related veterinary services
for which no flat rate user fee is specified.
(b) When do I pay an additional amount for employee(s) working
overtime? You must pay an additional amount if you need an APHIS
employee to work on a Sunday, on a holiday, or at any time outside the
normal tour of duty of that employee. Instead of paying the hourly rate
user fee, you pay the rate found online at <a href="http://www.aphis.usda.gov/business-services/vs-vd-fees">www.aphis.usda.gov/business-services/vs-vd-fees</a> for each employee needed to get the work done.
Sec. 130.5 Exemptions.
(a) Veterinary diagnostics. APHIS will not charge user fees for
veterinary diagnostic services under the following conditions:
(1) When veterinary diagnostic services are provided in connection
with Federal programs to control or eradicate diseases or pests of
livestock or poultry in the United States (program diseases);
(2) When veterinary diagnostic services are provided in support of
zoonotic disease surveillance when the Administrator has determined
that there is a significant threat to human health; and
(3) When veterinary diagnostic reagents are distributed within the
United States for testing for foreign animal diseases.
(b) [Reserved]
Sec. 130.6 Payment of user fees.
(a) Who must pay APHIS user fees? Any person for whom a service is
provided related to the importation, entry, or exportation of an
animal, article, or means of conveyance or related to veterinary
diagnostics, and any person requesting such service, shall be jointly
and severally liable for payment of fees assessed.
(b) Associated charges. (1) Reservation fee. Any reservation fee
paid by an importer under part 93 of this chapter will be applied to
the APHIS user fees described in Sec. 130.3(b) and (c) for animals or
birds quarantined in an animal import center.
(2) Special handling expenses. The user fees in this part do not
include any costs that may be incurred due to special mail handling,
including, but not limited to, express, overnight, or foreign mailing.
If any service requires special mail handling, the user must pay all
costs incurred, in addition to the user fee for the service.
(3) When do I pay an additional amount for employee(s) working
overtime? You must pay an additional amount if you need an APHIS
employee to work on a Sunday, on a holiday, or at any time outside the
normal tour of duty of that employee. You pay the amount specified in
paragraphs (b)(3)(i), (ii), or (iii) of this section as relevant, for
[[Page 59739]]
each employee needed to get the work done.
(i) What additional amount do I pay if I receive a flat rate user
fee service? In addition to the flat rate user fee(s), you pay the
overtime rate listed in the following table for each employee needed to
get the work done:
Table 1--Overtime for Flat Rate User Fees 1 2
----------------------------------------------------------------------------------------------------------------
Overtime rates by hour
Outside of the -----------------------------------------------------
Service provided employee's normal Nov. 2, 2015- Oct. 1, 2016-
tour of duty Sept. 30, 2016 Sept. 30, 2017 Beginning Oct.
1, 2017
----------------------------------------------------------------------------------------------------------------
Rate for inspection, testing, Monday through $75 $75 $75
certification or quarantine of Saturday and ................ ................ ................
animals, animal products or other holidays. 99 99 100
commodities \3\. Sundays..............
Rate for commercial airline Monday through 64 65 65
inspection services \4\. Saturday and ................ ................ ................
holidays. 85 86 86
Sundays..............
----------------------------------------------------------------------------------------------------------------
\1\ APHIS will charge of 2 hours, unless performed on the employee's regular workday and performed in direct
continuation of the regular workday or begun within an hour of the regular workday,
\2\ When the 2-hour minimum applies, you may need to pay commuted travel time. (See Sec. 97.1(b) of this
chapter for specific information about commuted travel time.)
\3\ See Sec. 97.1(a)of this chapter or 7 CFR 354.3 for details.
\4\ See Sec. 97.1(a)(3) of this chapter for details.
(ii) What amount do I pay if I receive an hourly rate user fee
service? Instead of paying the normal hourly rate user fee described in
Sec. 130.4(a), you pay the premium rate described in Sec. 130.4(b)
for each employee needed to get the work done:
(c) When are APHIS user fees due?--(1) Animal and bird quarantine
and related tests. User fees for animals and birds in an Animal Import
Center or privately operated permanent or temporary import quarantine
facilities, including user fees for tests conducted on these animals or
birds, must be paid prior to the release of those animals or birds from
quarantine.
(2) Supervision and inspection services for export animals, animal
products and byproducts. User fees for supervision and inspection
services described in Sec. 130.4 must be paid when billed, or, if
covered by a compliance agreement signed in accordance with this
chapter, must be paid as specified in the agreement.
(3) Export health certificates. User fees for export health
certificates described in Sec. 130.3(f) must be paid prior to receipt
of endorsed certificates. If APHIS determines that the user has
established an acceptable credit history, the user may request to pay
when billed.
(4) Veterinary diagnostics. User fees specified for veterinary
diagnostic services, such as tests on samples submitted to NVSL or
FADDL, diagnostic reagents, slide sets, tissue sets, and other
veterinary diagnostic services, must be paid when the veterinary
diagnostic service is requested. If APHIS determines that the user has
established an acceptable credit history, the user may request to pay
when billed.
(5) Other user fee services. User fees for import or entry services
for land border ports along the United States-Mexico or United States-
Canada border, inspection of germplasm being exported, release from
export agricultural hold, and other services described in Sec. 130.4
must be paid when service is provided (for example when live animals
are inspected when presented for importation at a port of entry). If
APHIS determines that the user has established an acceptable credit
history, the user may request to pay when billed.
(d) What payment methods are acceptable? Payment must be for the
exact amount due and may be paid by:
(1) Cash will be accepted only during normal business hours if
payment is made at an APHIS office or an Animal Import Center;
(2) All types of checks, including traveler's checks, drawn on a
U.S. bank in U.S. dollars and made payable to the U.S. Department of
Agriculture or USDA;
(3) Money orders, drawn on a U.S. bank in U.S. dollars and made
payable to the U.S. Department of Agriculture or USDA; or
(4) Credit cards (VISA\TM\ and MasterCard\TM\) if payment is made
at an Animal Import Center or an APHIS office that is equipped to
process credit cards.
Sec. 130.7 Penalties for nonpayment or late payment.
(a) Unpaid debt. If any person for whom the service is provided
fails to pay when due any debt to APHIS, including any user fee due
under 7 CFR chapter III or this chapter, then:
(1) Subsequent user fee payments. Payment must be made for
subsequent user fees before the service is provided if:
(i) For unbilled fees, the user fee is unpaid 60 days after the
date the pertinent regulatory provision indicates payment is due; or
(ii) For billed fees, the user fee is unpaid 60 days after date of
bill; or
(iii) The person for whom the service is provided or the person
requesting the service has not paid the late payment penalty or
interest on any delinquent APHIS user fee; or
(iv) Payment has been dishonored.
(2) Resolution of difference between estimate and actual. APHIS
will estimate the user fee to be paid; any difference between the
estimate and the actual amount owed to APHIS will be resolved as soon
as reasonably possible following the delivery of the service, with
APHIS returning any excess to the payor or billing the payor for the
additional amount due.
(3) Prepayment form. The prepayment must be in guaranteed form,
such as money order, certified check, or cash. Prepayment in guaranteed
form will continue until the debtor pays the delinquent debt.
(4) Denied service. Service will be denied until the debt is paid
if:
(i) For unbilled fees, the user fee is unpaid 90 days after date
the pertinent regulatory provision indicates payment is due; or
(ii) For billed fees, the user fee is unpaid 90 days after date of
bill; or
(iii) The person for whom the service is provided or the person
requesting the service has not paid the late payment penalty or
interest on any delinquent APHIS user fee; or
(iv) Payment has been dishonored.
(b) Unpaid debt during service. If APHIS is in the process of
providing a
[[Page 59740]]
service for which an APHIS user fee is due, and the user has not paid
the fee within the time required, or if the payment offered by the user
is inadequate or unacceptable, then APHIS will take the following
action:
(1) Animals or birds in quarantine. If an APHIS user fee is due for
animals or birds in quarantine at an animal import center or at a
privately operated import quarantine facility, APHIS will not release
them.
(2) Export health certificate. If an APHIS user fee specified is
due for an export health certificate, APHIS will not release the
certificate.
(3) Veterinary diagnostics. If an APHIS user fee is due for a
veterinary diagnostic test or service, APHIS will not release the test
result, any endorsed certificate, or any other veterinary diagnostic
service.
(c) Late payment penalty. In addition to the actions described in
paragraph (b) of this section, APHIS will impose a late payment penalty
and interest charges in accordance with 31 U.S.C. 3717 for:
(1) Unbilled user fees, if the user fees are unpaid 30 days after
the date the pertinent regulatory provisions indicate payment is due;
or
(2) Billed user fees, if the user fees are unpaid 30 days after the
date of the bill.
(d) Dishonored payment penalties. User fees paid with dishonored
forms of payment, such as a check returned for insufficient funds, will
be subject to interest and penalty charges in accordance with 31 U.S.C.
3717. Administrative charges will be assessed at $20.00 per dishonored
payment to be paid in addition to the original amount owed. Payment
must be in guaranteed form, such as cash, money order, or certified
check.
(e) Debt collection management. In accordance with the Debt
Collection Improvement Act of 1996, the following provisions apply:
(1) Taxpayer identification number. APHIS will collect a taxpayer
identification number from all persons, other than Federal agencies,
who are liable for a user fee.
(2) Administrative offset. APHIS will notify the Department of
Treasury of debts that are over 180 days delinquent for the purposes of
administrative offset. Under administrative offset, the Department of
Treasury will withhold funds payable by the United States to a person
(i.e., Federal income tax refunds) to satisfy the debt to APHIS.
(3) Cross-servicing. APHIS will transfer debts that are over 180
days delinquent to the Department of Treasury for cross-servicing.
Under cross-servicing, the Department of Treasury will collect debts on
behalf of APHIS. Exceptions will be made for debts that meet certain
requirements, for example, debts that are already at a collection
agency or in payment plan.
(4) Report delinquent debt. APHIS will report all unpaid debts to
credit reporting bureaus.
(f) Animals or birds abandoned after quarantine at an animal import
center. Animals or birds left in quarantine at an animal import center
for more than 30 days after the end of the required quarantine period
will be deemed to be abandoned.
(1) After APHIS releases the abandoned animals or birds from
quarantine, APHIS may seize them and sell or otherwise dispose of them,
as determined by the Administrator, provided that their sale is not
contrary to any Federal law or regulation. APHIS may recover all
expenses of handling the animals or birds from the proceeds of their
sale or disposition.
(2) If animals or birds abandoned in quarantine at an animal import
center cannot be released from quarantine, APHIS may seize and dispose
of them, as determined by the Administrator, and may recover all
expenses of handling the animals or birds from the proceeds of their
disposition and from persons liable for user fees under Sec. 130.6(a).
Done in Washington, DC, this 15th day of September 2022.
Anthony Shea,
Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 2022-21030 Filed 9-30-22; 8:45 am]
BILLING CODE 3410-34-P
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</html>Indexed from Federal Register on October 3, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.