Unknown. Final rule

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--- schema: federal-register doc_type: fedreg source_file: FR-2015-07-27.xml --- 80 143 Monday, July 27, 2015 Contents Agricultural Marketing Agricultural Marketing Service NOTICES Charter Renewals: Fruit and Vegetable Industry Advisory Committee, 44323 2015-18317 Agriculture Agriculture Department See Agricultural Marketing Service See Foreign Agricultural Service See Grain Inspection, Packers and Stockyards Administration See Procurement and Property Management Office, Agriculture Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 44323-44324 2015-18252 Centers Disease Centers for Disease Control and Prevention NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 44355-44357 2015-18301 Coast Guard Coast Guard RULES Navigation and Navigable Waters: Technical, Organizational, and Conforming Amendments, 44274-44287 2015-16520 Safety Zones: Annual Events in the Captain of the Port Buffalo Zone, 44288-44289 2015-18395 Fall River Grand Prix, Mt.

Hope Bay and Taunton River, Fall River, MA, 44289-44291 2015-18390 Recurring Events in Captain of the Port Boston Zone, 44287-44288 2015-18389 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 44325-44326 2015-18296 Consumer Product Consumer Product Safety Commission RULES Substantial Product Hazard List:

Extension Cords, 44262-44269 2015-18294 Defense Department Defense Department RULES Civilian Health and Medical Program of the Uniformed Services/TRICARE: TRICARE Pharmacy Benefits Program, 44269-44274 2015-18290 NOTICES Privacy Act; Systems of Records, 44333-44335 2015-18266 Defense Nuclear Defense Nuclear Facilities Safety Board NOTICES Meetings; Sunshine Act, 44335 2015-18405 Education Department Education Department NOTICES Grant Programs: Territories and Freely Associated States Education;

Final Waiver and Project Period Extension, 44335-44337 2015-18414 Employee Benefits Employee Benefits Security Administration NOTICES Exemptions from Certain Prohibited Transaction Restrictions, 44752-44769 2015-18139 Proposed Exemptions from Certain Prohibited Transaction Restrictions, 44702-44750 2015-18144 Energy Department Energy Department See Federal Energy Regulatory Commission See Western Area Power Administration PROPOSED RULES Energy Conservation Program: Standards for Room Air Conditioners, 44301 2015-18329 Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans;

Approvals and Promulgations: Alabama; Cross-State Air Pollution, 44292-44297 2015-18217 National Emission Standards for Hazardous Air Pollutants: Portland Cement Manufacturing Industry and Standards of Performance for Portland Cement Plants, 44772-44793 2015-16811 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Promulgations: Alabama; Cross-State Air Pollution Rule, 44320-44321 2015-18218 Mitigation of Exposure to Bees from Acutely Toxic Pesticide Products;

Extension of Comment Period, 44321 2015-18413 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: NESHAP for Polyvinyl Chloride and Copolymers Production; Renewal, 44354 2015-18243 Request for Scientific Views: Draft Recommended Aquatic Life Ambient Water Quality Chronic Criterion for Selenium -- Freshwater 2015, 44350-44354 2015-18348 Farm Credit Farm Credit Administration RULES Organization; Institution Stockholder Voting Procedures, 44258-44259 2015-18285 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives:

Various Transport Category Airplanes, 44259-44262 2015-18155 NOTICES Environmental Impact Statements; Availability, etc.: O'Hare Modernization, 44416-44418 2015-18209 Submission Deadline to Amend Slot Records for LaGuardia Airport, 44415-44416 2015-18336 Federal Emergency Federal Emergency Management Agency RULES Suspension of Community Eligibility, 44297-44300 2015-18272 PROPOSED RULES Flood Elevation Determinations: Hawaii County, HI; Withdrawal, 44321-44322 2015-18284 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: National Fire Department Census, 44370 2015-18273 Flood Hazard Determinations; Changes, 44363-44372 2015-18267 2015-18280 2015-18281 2015-18282 2015-18283 Flood Hazard Determinations; Corrections, 44369-44370 2015-18279 Major Disaster and Related Determinations: Louisiana, 44365 2015-18271 Major Disaster Declarations: Wyoming; Amendment No. 1, 44372 2015-18268 Federal Energy Federal Energy Regulatory Commission NOTICES Applications: Pacific Gas and Electric Co., 44337-44338 2015-18300 Transcontinental Gas Pipe Line Co., LLC, 44338-44339 2015-18297 Federal Reserve Federal Reserve System NOTICES Changes in Bank Control:

Acquisitions of Shares of a Bank or Bank Holding Company, 44354-44355 2015-18310 Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 44355 2015-18312 Proposals to Engage in or to Acquire Companies Engaged in Permissible Nonbanking Activities, 44355 2015-18311 Fish Fish and Wildlife Service PROPOSED RULES Endangered and Threatened Species: Identification and Proposed Listing of Eleven Distinct Population Segments of Green Sea Turtles (Chelonia mydas) as Endangered or Threatened and Revision of Current Listings;

Second Extension of Comment Period, 44322 2015-18246 Food and Drug Food and Drug Administration PROPOSED RULES Food Labeling: Nutrition and Supplement Facts Labels; Revision, 44302-44312 2015-17928 2015-17929 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Generic Clearance for the Collection of Qualitative Data on Tobacco Products and Communications, 44357 2015-18295 Guidance: Analytical Procedures and Methods Validation for Drugs and Biologics, 44357-44358 2015-18270 Foreign Agricultural Foreign Agricultural Service RULES Dairy Tariff-Rate Quota Import Licensing Program, 44251-44258 2015-18122 Foreign Trade Foreign-Trade Zones Board NOTICES Applications for Reorganization under Alternative Site Framework:

Foreign-Trade Zone 147; Berks County, PA, 44326 2015-18334 Grain Inspection Grain Inspection, Packers and Stockyards Administration NOTICES Proposed Posting, Posting, and Deposting of Stockyards, 44324-44325 2015-18251 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health RULES Developmental Disabilities Program, 44796-44827 2015-18070 Health Resources Health Resources and Services Administration NOTICES Statements of Organization, Functions and Delegations of Authority, 44358-44359 2015-18415 Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency See U.S.

Customs and Border Protection NOTICES Meetings: President's National Security Telecommunications Advisory Committee, 44375-44376 2015-18383 Privacy Act; Systems of Records, 44372-44375 2015-18385 Indian Affairs Indian Affairs Bureau NOTICES Liquor Control Ordinances: Pascua Yaqui Tribe of Arizona, 44376-44378 2015-18286 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Land Management Bureau See Reclamation Bureau See Surface Mining Reclamation and Enforcement Office Internal Revenue Internal Revenue Service NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 44423-44433 2015-18359 2015-18362 2015-18363 2015-18364 2015-18365 2015-18366 2015-18367 2015-18368 2015-18370 2015-18371 2015-18372 2015-18381 2015-18382 2015-18384 2015-18386 2015-18387 International Trade Adm International Trade Administration NOTICES Investigations; Determinations, Modifications, and Rulings, etc.: Carbon and Certain Alloy Steel Wire Rod from Mexico, 44326-44327 2015-18335 International Trade Com International Trade Commission NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:

Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes from Korea, Mexico, and Turkey, 44383 2015-18288 Commission Decision to Rescind a General Exclusion Order and Cease and Desist Orders: Certain Kinesiotherapy Devices and Components Thereof, 44384 2015-18269 Complaints: Certain Windscreen Wipers and Components Thereof, 44382 2015-18278 Labor Department Labor Department See Employee Benefits Security Administration See Occupational Safety and Health Administration Land Land Management Bureau NOTICES Meetings:

Resource Advisory Council to the Boise District, 44378-44379 2015-18305 Legal Legal Services Corporation NOTICES Agricultural Worker Population Data for Basic Field-Migrant Grants, 44399-44400 2015-18315 Competitive Grant Funds; Availability: Veterans Pro Bono Program, Calendar Year 2016, 44398-44399 2015-18309 Mississippi Mississippi River Commission NOTICES Meetings; Sunshine Act, 44400-44401 2015-18509 NASA National Aeronautics and Space Administration NOTICES Meetings: Advisory Council;

Science Committee; Earth Science Subcommittee, 44401 2015-18321 National Institute National Institute of Standards and Technology NOTICES Meetings: Advisory Committee on Earthquake Hazards Reduction, 44327-44328 2015-18352 National Institute National Institutes of Health NOTICES Meetings: National Institute of Arthritis and Musculoskeletal and Skin Diseases, 44359 2015-18244 National Institute of Environmental Health Sciences, 44360 2015-18250 National Institute of Neurological Disorders and Stroke, 44359 2015-18245 National Institute on Drug Abuse, 44359-44360 2015-18242 National Oceanic National Oceanic and Atmospheric Administration PROPOSED RULES Endangered and Threatened Species:

Identification and Proposed Listing of Eleven Distinct Population Segments of Green Sea Turtles (Chelonia mydas) as Endangered or Threatened and Revision of Current Listings; Second Extension of Comment Period, 44322 2015-18246 NOTICES Fisheries of the South Atlantic; Southeast Data, Assessment and Review: Procedural Workshop 7 to Develop Best Practice Recommendations for SEDAR Data Workshops, 44330 2015-18247 Meetings: Fisheries of the South Atlantic; South Atlantic Fishery Management Council, 44333 2015-18265 Gulf of Mexico Fishery Management Council, 44331-44333 2015-18253 Mid-Atlantic Fishery Management Council, 44329-44330 2015-18248 North Pacific Fishery Management Council;

Cancellation, 44328-44329 2015-18326 Pacific Fishery Management Council, 44328 2015-18249 Western Pacific Fishery Management Council, 44330-44331 2015-18322 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Nuclear Material Events Database for the Collection of Event Report, Response, Analyses, and Follow-up Data on Events Involving the Use of Atomic Energy Act Radioactive Byproduct Material, 44401-44402 2015-18291 Occupational Safety Health Adm Occupational Safety and Health Administration NOTICES Expansions of Recognition:

TUV SUD America, Inc., 44384-44386 2015-18320 Permanent Variance Applications: Traylor Bros., Inc.; Interim Order, 44386-44398 2015-18319 Pension Benefit Pension Benefit Guaranty Corporation PROPOSED RULES Annual Financial and Actuarial Information Reporting; Changes to Waivers, 44312-44318 2015-18177 Procurement Procurement and Property Management Office, Agriculture Department NOTICES FY 2014 Service Contract Inventories, 44325 2015-18399 Railroad Retirement Railroad Retirement Board NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 44402-44403 2015-18314 Reclamation Reclamation Bureau NOTICES Prize Competition Requirements and Registration: New Concepts for Remote Fish Detection, 44379-44382 2015-18157 Securities Securities and Exchange Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 44406, 44410-44411 2015-18323 2015-18325 Applications: BPV Capital Management, LLC and BPV Family of Funds, 44405-44406 2015-18324 Self-Regulatory Organizations;

Proposed Rule Changes: Chicago Board Options Exchange, Inc., 44403-44405 2015-18274 The NASDAQ Stock Market, LLC, 44406-44413 2015-18275 2015-18276 Small Business Small Business Administration NOTICES Disaster Declarations: Colorado, 44414 2015-18406 Kansas, 44413-44414 2015-18412 Oklahoma; Amendment 7, 44414-44415 2015-18411 Texas; Amendment 8, 44414 2015-18409 State Department State Department NOTICES Designations and Determinations Pursuant to the Foreign Missions Act: Development and Management of Approximately 32 Acres in the District of Columbia, on a Portion of the Former Walter Reed Army Medical Center, 44415 2015-18333 Surface Mining Surface Mining Reclamation and Enforcement Office PROPOSED RULES Stream Protection Rule, 44436-44698 2015-17308 NOTICES Stream Protection Rule:

Draft Regulatory Impact Analysis, 44700 2015-17292 Transportation Department Transportation Department See Federal Aviation Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 44418-44423 2015-18398 Treasury Treasury Department See Internal Revenue Service Customs U.S. Customs and Border Protection NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Importer ID Input Record, 44361-44362 2015-18306 Air Cargo Advance Screening Pilot Program, 44360-44361 2015-18287 Veteran Affairs Veterans Affairs Department PROPOSED RULES Payment of Emergency Medication, 44318-44320 2015-18331 Western Western Area Power Administration NOTICES Rate Orders:

Pick-Sloan Missouri Basin Program--Eastern Division, 44339-44350 2015-18240 Separate Parts In This Issue Part II Interior Department, Surface Mining Reclamation and Enforcement Office, 44436-44698 2015-17308 Part III Interior Department, Surface Mining Reclamation and Enforcement Office, 44700 2015-17292 Part IV Labor Department, Employee Benefits Security Administration, 44702-44750 2015-18144 Part V Labor Department, Employee Benefits Security Administration, 44752-44769 2015-18139 Part VI Environmental Protection Agency, 44772-44793 2015-16811 Part VII Health and Human Services Department, 44796-44827 2015-18070 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 80 143 Monday, July 27, 2015 Rules and Regulations DEPARTMENT OF AGRICULTURE Foreign Agricultural Service 7 CFR Part 6 RIN 0551-AA82 Dairy Tariff-Rate Quota Import Licensing Program AGENCY: Foreign Agricultural Service, USDA.

ACTION: Final rule. SUMMARY: This final rule amends the regulation that provides 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. The three most significant changes to the rule are to suspend for an additional seven years the historical license reduction provision which was set to expire with the beginning of quota year 2016; to modify procedures for collecting licensing fees in order to better align the fee collection to the costs of administering the program; and to exclusively use electronic communications in the application, reporting and payment processes. The expected outcome from these changes is to allow license holders to adjust to changing market conditions impacting the dairy sector; increase the Department's ability to more closely align cost recovery with the actual costs of administering the program; and allow the Department to reduce lag times, minimize paper files, and increase the efficiency of the program operations. DATES: *Effective Date:* September 1, 2015. FOR FURTHER INFORMATION CONTACT: Sugar and Dairy Branch, Import Policies and Export Reporting Division, Office of Trade Programs, Foreign Agricultural Service, U.S. Department of Agriculture,

(202)720-0638; fax

(202)720-0876; *dairy-ils@fas.usda.gov.* SUPPLEMENTARY INFORMATION: 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 ensures that regulatory and information requirements are tailored to the size and nature of small businesses, small organizations, and small governmental jurisdictions. 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 Executive Order 12988. 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. 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 (Pub. L. 104-4) Public Law 104-4 requires consultation with state and local officials and Indian tribal governments. 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. 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 Executive Order 12630. Government Paperwork Elimination Act The United States Department of Agriculture

(USDA)is committed to compliance with the Government Paperwork Elimination Act, which requires Government agencies, in general, to provide the public the option of submitting information or transacting business electronically to the maximum extent possible. Background The Foreign Agricultural Service (FAS), under a delegation of authority from the Secretary of Agriculture, administers the Dairy Tariff-Rate Quota Import Licensing regulation codified at 7 CFR 6.20 through 6.37 that provides for the issuance of licenses to import certain dairy articles under tariff-rate quotas

(TRQs)as set forth in certain notes in Chapter 4 of the Harmonized Tariff Schedule of the United States. These dairy articles may only be entered into the United States at the low-tier tariff by or for the account of a person, as defined in the regulation, to whom such licenses have been issued and only in accordance with the terms and conditions of the regulation. 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. Under TRQs, a low tariff rate, commonly referred to as the in-quota rate, applies to imports up to a specified quantity. A higher tariff rate, commonly referred to as the over-quota rate, applies to any imports in excess of that amount. No license is required to import products at the over-quota tariff rate. USDA issues three types of licenses: Historical, non-historical (lottery), and designated. For all three license types, the current regulation provides that 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 this regulation 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 license thereafter in an amount equal to the average amount imported under that license for those five quota years. This rule provides historical license holders additional time to adjust to changing market conditions by suspending the § 6.25(b) provision through the end of quota year 2022. Since this rule was adopted in order to implement U.S. obligations under the Uruguay Round Agreement on Agriculture, the § 6.25(b) provision has previously been suspended on three different occasions: For five years, 2001-2005; for two years, 2009-10; and for five years, 2011-15. The rule also now provides that reporting, payment, and application for licenses be made only by electronic submission in order to reduce the use of paper and streamline operations. Additionally, the rule modifies procedures for collecting licensing fees in order to better align the fee collection with the costs of administering the program. The previous regulation allowed applicants to apply for a license, generating administrative costs for the USDA, and then choose not to pay for the license, thus resulting in unrecovered administrative expenses. This rule imposes financial consequences for such non-payment, which will increase USDA's ability to recover program expenses. This rule does not make any modifications to the appendices to this subpart. Discussion of Comments On February 6, 2013, USDA published in the **Federal Register** (78 FR 8434) an advanced notice of proposed rulemaking

(ANPR)soliciting comment on all aspects of the previous dairy import licensing rule. USDA received comments from 46 interested parties and a summary of the comments was provided in the background to the Proposed Rule published December 23, 2014 (79 FR 76919). The comment period on the Proposed Rule ended February 23, 2015, and a total of 23 comments were received. Twenty-two of the comments received were similar in nature, provided support for the proposed rule, and are summarized as follows. Historical License Reduction Provision Respondents generally support the additional seven year suspension of the historical license reduction provision (§ 6.25(b)) from the rule, but would prefer its complete elimination. They were concerned that market factors outside of importers' control will in the future lead to low fill-rates and possible loss of licenses. One respondent did not oppose the additional seven year suspension, but suggested it be enforced only to the same extent as the relative fill rates for non-historical licenses. In such a system, a historical license holder would not be in jeopardy unless its fill rate fell below the fill-rate of non-historical licenses for the same article. *Response:* USDA chose the seven year suspension over complete elimination because the provision is generally in the public interest. As market conditions change, it may be important in the future to maintain the existence of the § 6.25(b) provision in order to have a mechanism that stimulates the transfer of under-utilized historical licenses to the lottery category. USDA will not adopt a new system, such as the proposal to link § 6.25(b) provisions for retaining licenses with fill rates in the lottery category, because of the complexity of administering such a system and the lack of support from other respondents. Timing of Implementation of Historical License Reduction Provision They oppose implementing the historical license reduction provision beginning in 2023, and propose instead that 2023 would be the first of a new five-year base period lasting until 2027. Under this scheme, the first reductions could not occur until 2028. *Response:* USDA chose to follow the same process used for the three previous suspensions. The seven year suspension should allow historical licenses holders sufficient time to adjust to changing market conditions and take necessary actions to comply with the provision. Administering the License Fee They generally support the proposed changes to tightening the timeline for making payments to 10 days from the date of issuance, and support requiring that an applicant who applies for and is issued a license pay for all licenses issued. One respondent preferred to maintain the payment deadline at 30 days and opposed revoking an entire licensee's portfolio for failure to pay the fee for a single license within ten days of receipt of a warning letter. *Response:* USDA will implement the proposed changes to the license fee payment timeline and loss of all licenses for failure to pay for all licenses. The proposed changes have the support of the large majority of respondents, will expedite the processing of licenses and will allow USDA to better align the fee collection to the costs of administering the program. Level of the License Fee Twenty of the 23 respondents expressed concerns with the rising costs of license fees. These 20 respondents did not express concerns with the current fee but noted that fees have increased by more than 66 percent in recent years and expressed an opinion that future increases be avoided. *Response:* USDA sets the license fee at the total estimated cost of administering the licensing program, divided by the number of licenses issued and accepted. The proposed changes will more closely align the fees to the cost of administering the program. Electronic Communication Twenty-two respondents commented that they appreciated the desire to move toward exclusive use of electronic communications, but are concerned about the ability of USDA's computer system to automatically access entry data from the CBP system. If eligibility requirements cannot be verified through entries on the CBP system, USDA currently requests CBP Form 7501 in order to conduct a manual evaluation. Unlicensed importers and licensed importers attempting to qualify with unlicensed entries occasionally submit the forms to USDA via U.S. Mail to verify entries and eligibility. *Response:* USDA recognizes the need for manual verification of the CBP Form 7501 for un-licensed importers and licensed importers attempting to qualify with unlicensed entries. USDA has amended this final rule to explicitly recognize emails and attached electronic files ( *e.g.* PDFs, Word Documents, and Excel Spreadsheets) as electronic communications. Licensed and un-licensed importers attempting to qualify using unlicensed entries must obtain an electronic copy, such as a digital scan of the CBP-7501 forms, and email them to USDA. USDA will no longer accept U.S. Mail, faxes, or hard copies. Licensed importers qualifying with licensed entries will continue to be assessed for eligibility based solely on CBP import records as cross-checked through DAIRIES. No additional verification is required for licensed refiners qualifying with licensed entries. One respondent recommended the replacement of the current lottery system for non-historical and surrendered licenses with a first-come-first-served

(FCFS)system. The respondent stated that a FCFS system would provide simplicity, lower transaction costs, eliminate licensing fees, allow greater flexibility for adapting to new market conditions and allow for continuing business relationships. *Response:* USDA will not replace the current licensing system with a FCFS system. Although USDA recognizes some advantages to a FCFS system, the current system generally permits adequate flexibility to administer the dairy import licensing requirements. Summary of Changes to Final Rule The following is a summary of the substantive changes to the final regulation: The name of the program has been changed throughout the document to read “Dairy Tariff-Rate Quota Import Licensing.” References to the process used for the initial allocation of licenses, which took place based on the 1997 quota year, have been removed throughout this rule due to the fact that current allocations are now based on the preceding quota year. References to the 1997 quota year allocations were removed from the following sections: §§ 6.20(b), 6.23(b)(2), 6.23(b)(3), 6.23(b)(4), 6.23(b)(5), 6.25(a)(1), 6.25(a)(2), 6.25(a)(3), and 6.26(f). Section 6.21 Definitions has been updated to include several modifications. The definition of “Article other than cheese or cheese products” now specifies that the article is a dairy product. The definition of “EC” no longer lists the current members, because new members may be added at any time. Therefore, the definition of “EC” is defined to be those countries listed in Additional U.S. Note 2 to Chapter 4 of the Harmonized Tariff Schedule, because this is published annually and maintained current. “Customs” has been replaced throughout the rule with “CBP” which stands for U.S. Customs and Border Protection. The definition of “Licensing Authority” removes reference to a specific USDA division. The definition of “Other Countries” deletes the reference to the Harmonized Tariff Schedule. The definition of “Postmark” is deleted from this section, given that physical mail will no longer be accepted. This rule requires that all communications, applications, reporting and payment be made electronically as designated by the Licensing Authority. Therefore, references to physical mail, postmarks, mailing addresses, or physical locations have been deleted throughout the rule. The references to physical mail delivery that have been deleted are found in the following sections: §§ 6.24(a), 6.24(b)(1), 6.24(c), 6.25(d)(1), 6.26(a), 6.26(c), 6.28(b), 6.33(b), 6.33(c), 6.35(b), and 6.36(b). Additionally, a valid email address is now required for eligibility. The requirement for an email address has been added to § 6.23(a)(3). Section 6.22(b) was deleted from the rule because these references to General Note 15 provisions of the HTS are not covered, nor in any way affected, by the dairy import licensing program. Section 6.24(b)(1) requires for licensed qualifying entries, verification will be only processed through DAIRIES and cross checked with entries in the CBP system. For unlicensed qualifying entries, the applicant will submit an electronic copy ( *e.g.* scanned PDF) of CBP Form 7501 to the Licensing Authority. Section 6.24(c) was deleted because it primarily applied to mailed hardcopy applications. The information submitted through the current electronic application system obviates the need for submitting this additional information. Section 6.25(a)(1) through

(3)was deleted because the historic allocation process is no longer relevant. New quota year allocations are made based on the preceding year's allocations and usage. Section 6.25(b) extends the date of the suspension of the historical licenses reduction provision for an additional seven years, expiring with the beginning of quota year 2023. Section 6.25(d)(1)(ii) requires, for Appendix 3 allocations, that countries designate the allocations of specific articles to importers in kilograms. This requirement will reduce any disputes arising from converting percentages into weights. Section 6.26(c) was rewritten to clarify the surrender and allocation process for persons who were issued an import license for a cheese or cheese product article versus a person who was issued an import license for an article other than cheese or cheese products. Section 6.28(b) requires that all license holders who intend to convey their business and are requesting USDA to transfer a license, submit the required documentation by email. The option to send documents via physical mail or courier is no longer available. Section 6.33(b) tightens the timeline for making payments and requires payment in full within 10 days from the date of the issuance of the license, rather than the current 30 day period. This change would allow USDA to accelerate some of its administrative functions of operating the licensing program because the use of electronic payment does not require the longer lag time necessary for processing paper checks. Section 6.33(c) requires that an applicant who applies for and is issued a license pay for all licenses issued, or a hold will be placed on all licenses of such applicant. If after receiving a warning letter via email from the Licensing Authority, the applicant does not pay in full within 10 days for all licenses issued, then all licenses issued to the licensee, paid or unpaid, will be revoked. Section 6.33(d) is deleted pursuant to the previous clause (§ 6.33(c)) and no longer permits licensees not to accept or pay for certain licenses issued to them. The cost of administering the licensing program is incurred by USDA during the application and allocation process; therefore, applicants will be required to pay for licenses issued in accordance with § 6.33(c) or have all licenses revoked. Section 6.37 is removed. This administrative change is an improvement in the method of publishing the annual adjustment of the appendixes to reflect changes in the quantities of historical (Appendix 1) and lottery (appendix 2) license amounts (section 6.37). Previously, the final rule required an amendment each year. Instead, the Department of Agriculture will now annually publish the adjustments to the appendixes by Notice in the **Federal Register** . 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—Dairy Tariff-Rate Quota Import Licensing 1. The authority citation for Subpart—Dairy Tariff-Rate Quota Import Licensing continues to read as follows: Authority: Additional U.S. Notes 6, 7, 8, 12, 14, 16-23 and 25 to Chapter 4 and General Note 15 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), Pub. L. 97-258, 96 Stat. 1051, as amended (31 U.S.C. 9701), and secs. 103 and 404, Pub. L. 103-465, 108 Stat. 4819 (19 U.S.C. 3513 and 3601). 2. The heading for “Subpart—Dairy Tariff-Rate Import Quota Licensing” is revised to read as set forth above. 3. Sections 6.20 through 6.36 are revised to read as follows: 6.20 Introduction. 6.21 Definitions. 6.22 Requirement for a license. 6.23 Eligibility to apply for a license. 6.24 Application for a license. 6.25 Allocation of licenses. 6.26 Surrender and reallocation. 6.27 Limitations on use of license 6.28 Transfer of license. 6.29 Use of licenses. 6.30 Record maintenance and inspection. 6.31 Debarment and suspension. 6.32 Globalization of licenses. 6.33 License fee. 6.34 Adjustment of appendices. 6.35 Correction of errors. 6.36 Miscellaneous. § 6.20 Introduction.

(a)Presidential Proclamation 6763 of December 23, 1994, modified the Harmonized Tariff Schedule of the United States affecting the import regime for certain articles of dairy products. The Proclamation terminated quantitative restrictions that had been imposed pursuant to section 22 of the Agricultural Adjustment Act of 1933, as amended (7 U.S.C. 624); proclaimed tariff-rate quotas for such articles pursuant to Public Law 103-465; and specified which of such articles may be entered only by or for the account of a person to whom a license has been issued by the Secretary of Agriculture.

(b)Effective January 1, 1995, the prior regime of absolute quotas for certain dairy products was replaced by a system of tariff-rate quotas. The articles subject to licensing under the tariff-rate quotas are listed in Appendices 1, 2, and 3 to be published annually in a notice in the **Federal Register** . Licenses permit the holder to import specified quantities of the subject articles into the United States at the applicable in-quota rate of duty. If an importer has no license for an article subject to licensing, such importer will, with certain exceptions, be required to pay the applicable over-quota rate of duty.

(c)The Secretary of Agriculture has determined that this subpart will, to the fullest extent practicable, result in fair and equitable allocation of the right to import articles subject to such tariff-rate quotas. The subpart will also maximize utilization of the tariff-rate quotas for such articles, taking due account of any special factors which may have affected or may be affecting the trade in the articles concerned. § 6.21 Definitions. As used in this subpart and the appendices thereto, the following terms are defined as follows: *Article.* One of the products listed in Appendices 1, 2, or 3, which are the same as those described in Additional U.S. Notes 6, 7, 8, 12, 14, 16-23 and 25 to Chapter 4 of the Harmonized Tariff Schedule. *Article other than cheese or cheese products.* Any article that is a dairy product, but not a cheese or cheese product. *CBP.* United States Customs and Border Protection, U.S. Department of Homeland Security. *Cheese or cheese products.* Articles in headings 0406, 1901.90.34, and 1901.90.36 of the Harmonized Tariff Schedule. *Commercial entry.* Any entry except those made by or for the account of the United States Government or for a foreign government, for the personal use of the importer or for sampling, taking orders, research, or the testing of equipment. *Country.* Country of origin as determined in accordance with CBP rules and regulations, except that “EC”, and “Other countries” shall each be treated as a country. *DAIRIES.* The “Dairy Accelerated Importer Retrieval and Information Exchange System”. The web-based user interface system which persons must utilize to apply for and manage licenses, and through which the Licensing Authority will communicate all program notices. *Dairy products.* Articles in headings 0401 through 0406, margarine cheese listed under headings 1901.90.34 and 1901.90.36, ice cream listed under heading 2105, and casein listed under heading 3501 of the Harmonized Tariff Schedule. *Department.* The United States Department of Agriculture. *EC.* Those countries listed in Additional U.S. Note 2 to Chapter 4 of the Harmonized Tariff Schedule. *Enter or Entry.* To make or making entry for consumption, or withdrawal from warehouse for consumption in accordance with CBP regulations and procedures. *Harmonized Tariff Schedule or HTS.* The Harmonized Tariff Schedule of the United States. *Licensee.* A person to whom a license has been issued under this subpart. *Licensing Authority.* Any officer or employee of the U.S. Department of Agriculture designated to act in this position by the Director of the Division charged with managing the Dairy Tariff-Rate Quota Import Licensing System. *Other countries.* Countries not listed by name as having separate tariff-rate quota allocations for an article. *Person.* An individual, firm, corporation, partnership, association, trust, estate or other legal entity. *Process or processing.* Any additional preparation of a dairy product, such as melting, grating, shredding, cutting and wrapping, or blending with any additional ingredient. *Quota year.* The 12-month period beginning on January 1 of a given year. *Tariff-rate quota amount or TRQ amount.* The amount of an article subject to the applicable in-quota rate of duty established under a tariff-rate quota. *United States.* The customs territory of the United States, which is limited to the 50 states, the District of Columbia, and Puerto Rico. § 6.22 Requirement for a license. A person who seeks to enter, or cause to be entered an article as a commercial entry, shall obtain a license, in accordance with this subpart. § 6.23 Eligibility to apply for a license.

(a)*In general.* To apply for any license, a person shall have:

(1)A business office, and be doing business, in the United States, and

(2)An agent in the United States for service of process, and

(3)An email address to be used for correspondence regarding licensing activities and reports. The licensee is responsible to continuously maintain a valid email address in DAIRIES for use in communicating with the Licensing Authority.

(b)*Eligibility for 2016 and subsequent quota years.*

(1)Historical licenses (Appendix 1). A person issued a historical license for an article for the current quota year may apply for a historical license (Appendix 1) for the next quota year for the same article from the same country, if such person was, during the 12-month period ending August 31 prior to the quota year, either:

(i)Where the article is cheese or cheese product,

(A)The owner of and importer of record for at least three separate commercial entries of cheese or cheese products totaling not less than 57,000 kilograms net weight, each of the three entries not less than 2,000 kilograms net weight;

(B)The owner of and importer of record for at least eight separate commercial entries of cheese or cheese products, from at least eight separate shipments, totaling not less than 19,000 kilograms net weight, each of the eight entries not less than 450 kilograms net weight, with a minimum of two entries in each of at least three quarters during that period; or

(C)The owner or operator of a plant listed in Section II or listed in Section I as a processor of cheese of the most current issue of “Dairy Plants Surveyed and Approved for USDA Grading Service” and had processed or packaged at least 450,000 kilograms of cheese or cheese products in its own plant in the United States; or

(ii)Where the article is not cheese or cheese product,

(A)The owner of and importer of record for at least three separate commercial entries of dairy products totaling not less than 57,000 kilograms net weight, each of the three entries not less than 2,000 kilograms net weight;

(B)The owner of and importer of record for at least eight separate commercial entries of dairy products, from at least eight separate shipments, totaling not less than 19,000 kilograms net weight, each of the eight entries not less than 450 kilograms net weight, with a minimum of two entries in each of at least three quarters during that period;

(C)The owner or operator of a plant listed in the most current issue of “Dairy Plants Surveyed and Approved for USDA Grading Service” and had manufactured, processed or packaged at least 450,000 kilograms of dairy products in its own plant in the United States; or

(D)The exporter of dairy products in the quantities and number of shipments required under

(A)or

(B)above.

(2)Nonhistorical licenses for cheese or cheese products (Appendix 2). A person may annually apply for a nonhistorical license for cheese or cheese products (Appendix 2) if such person meets the requirements of paragraph (b)(1)(i) of this section.

(3)Nonhistorical licenses for articles other than cheese or cheese products (Appendix 2). A person may annually apply for a nonhistorical license for articles other than cheese or cheese products (Appendix 2) if such person meets the requirements of paragraph (b)(1)(ii) of this section.

(4)Designated license (Appendix 3). A designated license may be issued to a person who has applied for a license, has met the requirements of paragraph (b)(1)(i) of this section, and is designated by the government of a country for such license according to § 6.25(d).

(c)*Exceptions.*

(1)A licensee that fails in a quota year to enter at least 85 percent of the amount of an article permitted under a license shall not be eligible to receive a license for the same article from the same country for the next quota year. For the purpose of this paragraph, the amount of an article permitted under the license will exclude any amounts surrendered pursuant to § 6.26(a), but will include any additional allocations received pursuant to § 6.26(b).

(2)Paragraph (c)(1) of this section will not apply where the licensee demonstrates to the satisfaction of the Licensing Authority that the failure resulted from breach by a carrier of its contract of carriage, breach by a supplier of its contract to supply the article, act of God or force majeure.

(3)Paragraph (c)(1) of this section may not apply in the case of historical or nonhistorical licenses, where the licensee demonstrates to the satisfaction of the Licensing Authority that the country specified on the license maintains or permits an export monopoly to control the dairy articles concerned and the licensee petitions the Licensing Authority to waive this requirement. The licensee shall submit evidence that the country maintains an export monopoly as defined in this paragraph. For the purposes of this paragraph “export monopoly” means a privilege vested in one or more persons consisting of the exclusive right to carry on the exportation of any article of dairy products from a country to the United States.

(4)The Licensing Authority will not issue a nonhistorical license (Appendix 2) for an article from a country during a quota year to an applicant who is affiliated with another applicant to whom the Licensing Authority is issuing a non-historical license for the same article from the same country for that quota year. Further, the Licensing Authority will not issue a nonhistorical license for butter to an applicant who is affiliated with another applicant to whom the Licensing Authority is issuing a historical butter license of 57,000 kilograms or greater. For the purpose of this paragraph, an applicant will be deemed affiliated with another applicant if:

(i)The applicant is the spouse, brother, sister, parent, child or grandchild of such other applicant;

(ii)The applicant is the spouse, brother, sister, parent, child or grandchild of an individual who owns or controls such other applicant;

(iii)The applicant is owned or controlled by the spouse, brother, sister, parent, child or grandchild of an individual who owns or controls such other applicant.

(iv)Both applicants are 5 percent or more owned or directly or indirectly controlled, by the same person;

(v)The applicant, or a person who owns or controls the applicant, benefits from a trust that controls such other applicant.

(5)The Licensing Authority will not issue a nonhistorical license (Appendix 2) for an article from a country during a quota year to an applicant who is associated with another applicant to whom the Licensing Authority is issuing a nonhistorical license for the same article from the same country for that quota year. Further, the Licensing Authority will not issue a nonhistorical license for butter to an applicant who is associated with another applicant to whom the Licensing Authority is issuing a historical butter license for 57,000 kilograms or greater. For the purpose of this paragraph, an applicant will be deemed associated with another applicant if:

(i)The applicant is an employee of, or is controlled by an employee of, such other applicant;

(ii)The applicant manages or is managed by such other applicant, or economically benefits, directly or indirectly, from the use of the license issued to such other applicant.

(6)The Licensing Authority will not issue a nonhistorical license for an article from a country during a quota year, for which the applicant receives a designated license. § 6.24 Application for a license.

(a)Application for license shall be made on electronic forms designated for the purpose by the Licensing Authority. All parts of the application shall be completed. The application shall be transmitted no earlier than September 1 and no later than midnight October 15 of the year preceding that for which license application is made. The Licensing Authority will not accept incomplete applications. (b)(1) Where the applicant seeks to establish eligibility on the basis of imports, applications shall include identification of entries sufficient to establish the applicant as the importer of record of entries required under § 6.23, during the 12-month period ending August 31 prior to the quota year for which license is being sought. For qualifying licensed entries, verification will be only processed through DAIRIES and cross checked with entries in the CBP system. For qualifying unlicensed entries, the applicant will submit an electronic copy ( *e.g.* scanned PDF) of CBP Form 7501 to the Licensing Authority.

(2)Where the applicant seeks to establish eligibility on the basis of exports, applications shall include:

(i)Census Form 7525 or a copy of the electronic submission of such form, and

(ii)The commercial invoice or bill of sale for the quantities and number of export shipments required under § 6.23, during the 12-month period ending August 31 prior to the quota year for which license is being sought.

(c)An applicant requesting more than one nonhistorical license must rank order these requests by the applicable Additional U.S. Note number. Cheese and cheese products must be ranked separately from dairy articles other than cheese or cheese products. § 6.25 Allocation of licenses.

(a)*Licensing Authority.* The Licensing Authority will issue historical, nonhistorical and designated 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 2023 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.

(c)*Nonhistorical licenses (Appendix 2).* The Licensing Authority will allocate nonhistorical licenses on the basis of a rank-order lottery system, which will operate as follows:

(1)The minimum license size shall be:

(i)Where the article is cheese or cheese product:

(A)The total amount available for nonhistorical license where such amount is less than 9,500 kilograms;

(B)9,500 kilograms where the total amount available for nonhistorical license is between 9,500 kilograms and 500,000 kilograms, inclusive;

(C)19,000 kilograms where the total amount available for nonhistorical license is between 500,001 kilograms and 1,000,000 kilograms, inclusive;

(D)38,000 kilograms where the total amount available for nonhistorical license is greater than 1,000,000 kilograms; or

(E)An amount less than the minimum license size established in paragraphs (c)(1)(i)

(A)through

(D)of this section, if requested by the licensee;

(ii)Where the article is not cheese or cheese product:

(A)The total amount available for nonhistorical license where such amount is less than 19,000 kilograms;

(B)19,000 kilograms where the total amount available for nonhistorical license is between 19,000 kilograms and 550,000 kilograms, inclusive;

(C)38,000 kilograms where the total amount available for nonhistorical license is between 550,001 kilograms and 1,000,000 kilograms, inclusive; and

(D)57,000 kilograms where the total amount available for nonhistorical license is greater than 1,000,000 kilograms;

(E)An amount less than the minimum license sizes established in paragraphs (c)(1)(i)(A) through

(D)of this section, if requested by the licensee.

(2)Taking into account the order of preference expressed by each applicant, as required by § 6.24(c), the Licensing Authority will allocate licenses for an article from a country by a series of random draws. A license of minimum size will be issued to each applicant in the order established by such draws until the total amount of such article in Appendix 2 has been allocated. An applicant that receives a license for an article will be removed from the pool for subsequent draws until every applicant has been allocated at least one license, provided that the licenses for which they applied are not already fully allocated. Any amount remaining after the random draws which is less than the applicable minimum license size may, at the discretion of the licensing Authority, be prorated equally among the licenses awarded for that article.

(d)*Designated licenses (Appendix 3).*

(1)With respect to an article listed in Appendix 3, the government of the applicable country may, not later than October 31 prior to the beginning of a quota year, submit directly by email to the Licensing Authority:

(i)The names, addresses and emails of the importers that it is designating to receive licenses; and

(ii)The amount, in kilograms, of such article for which each such importer is being designated. Where quantities for designation result from both Tokyo Round concessions and Uruguay Round concessions, the designations should be made in terms of each.

(2)To the extent practicable, the Licensing Authority will issue designated licenses to those importers, and in those amounts, indicated by the government of the applicable country, provided that the importer designated meets the eligibility requirements set forth in § 6.23. Consistent with the international obligations of the United States, the Licensing Authority may disregard a designation if the Licensing Authority determines that the person designated is not eligible for any of the reasons set forth in § 6.23(c)(1) or (2).

(3)If a government of a country which negotiated in the Uruguay Round for the right to designate importers has not done so, but determines to designate importers for the next quota year, it shall indicate its intention to do so directly and in writing to the Licensing Authority not later than July 1 prior to the beginning of such next quota year. Furthermore, if a government that has designated importers for a quota year determines that it will not continue to designate importers for the next quota year, it shall so indicate directly and in writing to the Licensing Authority, not later than July 1 prior to such next quota year. § 6.26 Surrender and reallocation.

(a)If a licensee determines that it will not enter the entire amount of an article permitted under its license, such licensee shall surrender its license right to enter the amount that it does not intend to enter. Surrender shall be made to the Licensing Authority no later than October 1. Any surrender shall be final and shall be only for that quota year, except as provided in § 6.25(b). The amount of the license not surrendered shall be subject to the license use requirements of § 6.23(c)(1).

(b)For each quota year, the Licensing Authority will, to the extent practicable, reallocate any amounts surrendered.

(c)Any person who qualified for or was issued a cheese or cheese product license for a quota year may apply to receive additional license, or addition to an existing license for a portion of the amount being reallocated. A person who did not qualify for a cheese or cheese product license for a quota year, but qualified only for a license for articles other than cheese or cheese products, may only apply to receive an additional license for articles other than cheese or cheese products, or addition to an existing license for articles other than cheese or cheese products for a portion of the amount being reallocated. The application shall be submitted to the Licensing Authority no earlier than September 1 and not later than September 15, and shall specify:

(1)The name and control number of the applicant;

(2)The article and country being requested, the applicable HTS Additional U.S. Note number and, if more than one article is requested, a rank-order by Additional U.S. Note number; and

(3)If applicable, the number of the license issued to the applicant for that quota year permitting entry of the same article from the same country.

(d)The Licensing Authority will reallocate surrendered amounts among applicants as follows:

(1)The minimum license size, or addition to an existing license, will be the total amount of the article from a country surrendered, or 10,000 kilograms, whichever is less;

(2)Minimum size licenses, or additions to an existing license, will be allocated among applicants requesting articles on the basis of the rank-order lottery system described in § 6.25(c);

(3)If there is any amount of an article from a country left after minimum size licenses have been issued, the Licensing Authority may allocate the remainder in any manner it determines equitable among applicants who have requested that article; and

(4)No amount will be reallocated to a licensee who has surrendered a portion of its license for the same article from the same country during that quota year unless all other licensees applying for a reallocated quantity have been allocated a license;

(e)However, if the government of an exporting country chooses to designate eligible importers for surrendered amounts under Appendix 3, the Licensing Authority shall issue the licenses in accordance with § 6.25(d)(2), provided that the government of the exporting country notifies the Licensing Authority of its designations no later than September 1. Such notification shall contain the names, addresses, and emails addresses of the importers that it is designating and the amount in kilograms of such article for which each importer is being designated. In such case the requirements of paragraph

(c)of this section shall not apply. § 6.27 Limitations on use of license.

(a)A licensee shall not obtain or use a license for speculation, brokering, or offering for sale, or permit any other person to use the license for profit.

(b)A licensee who is eligible as a manufacturer or processor, pursuant to § 6.23, shall process at least 75 percent of its licensed imports in such person's own facilities and maintain the records necessary to so substantiate. § 6.28 Transfer of license.

(a)If a licensee sells or conveys its business involving articles covered by this subpart to another person, including the complete transfer of the attendant assets, the Licensing Authority will transfer to such other person the historical, nonhistorical or designated license issued for that quota year. Such sale or conveyance must be unconditional, except that it may be in escrow with the sole condition for return of escrow being that the Licensing Authority determines that such sale does not meet the requirements of this paragraph.

(b)The parties seeking transfer of license shall give written notice to the Licensing Authority of the intended sale or conveyance described in paragraph

(a)of this section by email. The notice must be received by the Licensing Authority at least 20 working days prior to the intended consummation of the sale or conveyance. Such notice shall include electronic copies of the documents of sale or conveyance. The Licensing Authority will review the documents for compliance with the requirements of paragraph

(a)of this section and advise the parties in writing of its findings by the end of the 20-day period. The parties shall have the burden of demonstrating to the satisfaction of the Licensing Authority that the contemplated sale or conveyance complies with the requirements of paragraph

(a)of this section. Within 15 days of the consummation of the sale or conveyance, the parties shall email the final documents to the Licensing Authority. The Licensing Authority will not transfer the licenses unless the documents are submitted in accordance with this paragraph.

(c)The eligibility for a license of a person to whom a business is sold or conveyed will be determined for the next quota year in accordance with § 6.23. For the purposes of § 6.23(b)(1) the person to whom a business is sold or conveyed shall be deemed to be the person to whom the historical licenses were issued during the quota year in which the sale or conveyance occurred. Further, for the purposes of § 6.23(b) and (c), the entries made under such licenses by the original licensee during the year in which the sale of conveyance is made, shall be considered as having been made by the person to whom the business was sold or conveyed. § 6.29 Use of licenses.

(a)An article entered under a license shall be an article produced in the country specified on the license.

(b)An article entered or withdrawn from warehouse for consumption under a license must be entered in the name of the licensee as the importer of record by the licensee or its agent, and must be owned by the licensee at the time of such entry.

(c)If the article entered or withdrawn from warehouse for consumption was purchased by the licensee through a direct sale from a foreign supplier, the licensee shall present, at the time of entry:

(1)A true and correct copy of a through bill of lading from the country; and

(2)A commercial invoice or bill of sale from the seller, showing the quantity and value of the product, the date of purchase and the country; or

(3)Where the article was entered into warehouse by the foreign supplier, CBP Form 7501 endorsed by the foreign supplier, and the commercial invoice.

(d)If the article entered was purchased by the licensee via sale-in-transit, the licensee shall present, at the time of entry:

(1)A true and correct copy of a through bill of lading endorsed by the original consignee of the goods;

(2)A certified copy of the commercial invoice or bill of sale from the foreign supplier to the original consignee of the goods; and

(3)A commercial invoice or bill of sale from the original consignee to the licensee.

(e)If the article entered was purchased by the licensee in warehouse, the licensee shall present, at the time of entry:

(1)CBP Form 7501 endorsed by the original consignee of the goods;

(2)A certified copy of the commercial invoice or bill of sale from the foreign supplier to the original consignee of the goods; and

(3)A commercial invoice or bill of sale from the original consignee to the licensee.

(f)The Licensing Authority may waive the requirements of paragraphs (c),

(d)or (e), if it determines that because of strikes, lockouts or other unusual circumstances, compliance with those requirements would unduly interfere with the entry of such articles.

(g)Nothing in this subpart shall prevent the use of immediate delivery in accordance with the provisions of CBP regulations relating to tariff-rate quotas. § 6.30 Record maintenance and inspection. A licensee shall retain all records relating to its purchases, sales and transactions governed by this subpart, including all records necessary to establish the licensee's eligibility, for five years subsequent to the end of the quota year in which such purchases, sales or transactions occurred. During that period, the licensee shall, upon reasonable notice and during ordinary hours of business, grant officials of the U.S. Department of Agriculture full and complete access to the licensee's premises to inspect, audit or copy such records. § 6.31 Debarment and suspension. The provisions in 7 CFR part 3017— Government-wide Debarment and Suspension (Nonprocurement) and Government Requirements for Drug-Free Workplace (Grants), subparts A through E, apply to this subpart. § 6.32 Globalization of licenses. If the Licensing Authority determines that entries of an article from a country are likely to fall short of that country's allocated amount as indicated in Appendices 1, 2, and 3, the Licensing Authority may permit, with the approval of the Office of the United States Trade Representative, the applicable licensees to enter the remaining balance or a portion thereof from any country during that quota year. Requests for consideration of such adjustments must be submitted to the Licensing Authority no later than September 1. The Licensing Authority will obtain prior consent for such an adjustment of licenses from the government of the exporting country for quantities in accordance with the Uruguay Round commitment of the United States. No globalization requests will be considered prior to April 1 of each year. § 6.33 License fee.

(a)A fee will be assessed each quota year for each license to defray the Department's costs of administering the licensing system. To the extent practicable, the fee will be announced by the Licensing Authority in a notice published in the **Federal Register** no later than August 31 of the year preceding the quota year for which the fee is assessed.

(b)The license fee for each license issued is due and payable in full no later than March 15 of the year for which the license is issued. The fee for any license issued after March 15 of any quota year is due and payable in full no later than 10 days from the date of issuance of the license. Fee payments are payable to the Treasurer of the United States and shall be made solely utilizing the electronic software designated for the purpose by the Licensing Authority as provided in § 6.36(b).

(c)If the license fees for all licenses issued to a licensee are not paid by the final payment date, a hold will be placed on the use of all licenses issued to the licensee and no articles will be permitted entry under those licenses. The Licensing Authority shall send a warning by email advising the licensee that if payment is not made in accordance with § 6.36(b) and received within 10 calendar days from the date of the email, all licenses issued to that licensee will be revoked. Where the license at issue is a historical license, this will result, pursuant to § 6.23(b), in the person's loss of historical eligibility for such license. § 6.34 Adjustment of appendices.

(a)Whenever a historical license (Appendix 1) is not issued to an applicant pursuant to the provisions of § 6.23, is permanently surrendered or is revoked by the Licensing Authority, the amount of such license will be transferred to Appendix 2.

(b)The cumulative annual transfers to Appendix 2 made in accordance with paragraph

(a)of this section will be published by Notice in the **Federal Register** each year. If a transfer results in the addition of a new article, or an article from a country not previously listed in Appendix 2, the Licensing Authority shall afford all eligible applicants for that quota year the opportunity to apply for a license for such article. § 6.35 Correction of errors.

(a)If a person demonstrates, to the satisfaction of the Licensing Authority, that errors were made by officers or employees of the United States Government, the Licensing Authority will review and rectify the errors to the extent permitted under this subpart.

(b)To be considered, a person must provide sufficient documentation regarding the error to the Licensing Authority by email, not later than August 31 of the calendar year following the calendar year in which the error was alleged to have been committed.

(c)If the error resulted in the loss of a historical license by a license holder, the Licensing Authority will transfer the amount of such license from Appendix 2 to Appendix 1 in order to provide for the issuance of such license in the calendar year following the calendar year for which the license was revoked. The cumulative annual transfers to Appendix 1 in accordance with this paragraph will be published in the **Federal Register** . § 6.36 Miscellaneous.

(a)If any deadline date in this subpart falls on a Saturday, Sunday, or a Federal holiday, then the deadline shall be the next business day.

(b)All applications and fee payments required under this subpart shall be made utilizing the electronic software designated for this purpose by the Licensing Authority, and official correspondence with the Licensing Authority, except as provided under § 6.28(b), shall be by email. Digital scanned versions ( *e.g.* PDF, JPEG, TIF, etc.) of hardcopy documents submitted by email are acceptable electronic communications. § 6.37 [Removed] 4. Section 6.37 is removed. Appendixes 1-3 to Subpart—Dairy Tariff-Rate Import Quota Licensing [Removed] 5. Appendixes 1-3 to Subpart—Dairy Tariff-Rate Import Quota Licensing are removed. Dated: June 23, 2015. Philip C. Karsting, Administrator, Foreign Agricultural Service. [FR Doc. 2015-18122 Filed 7-24-15; 8:45 am]

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