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CFR Citation: 9 CFR Part 94

Docket ID: [Docket No. APHIS-2008-0032]

RIN ID: RIN 0579-AC80

NOTICE: PROPOSED RULES

DOCUMENT ACTION: Proposed rule.

SUBJECT CATEGORY: Importation of Cooked Pork Skins

DATES: We will consider all comments that we receive on or before September 2, 2008.

DOCUMENT SUMMARY: We are proposing to amend the regulations to allow for the importation of cooked pork skins from regions affected with footand mouth disease, swine vesicular disease, African swine fever, and classical swine fever under certain conditions. We are taking this action after preparing a risk assessment that concluded that the cooking methods examined are sufficient to inactivate the pathogens of concern. This action would relieve restrictions on the importation of cooked pork skins while continuing to protect against the introduction of those diseases of concern.

SUMMARY: Importation of Cooked Pork Skins,

SUPPLEMENTAL INFORMATION

The regulations in 9 CFR part 94 (referred to below as the regulations) prohibit or restrict the importation of certain animals and animal products into the United States to prevent the introduction of communicable diseases of livestock and poultry. The regulations in Sec. Sec. 94.4, 94.8, 94.9, and 94.12 contain requirements for the importation of cured or cooked meat and pork and pork products from regions where rinderpest, footandmouth disease (FMD), African swine fever (ASF), classical swine fever (CSF), and swine vesicular disease (SVD) exist.

Currently, the regulations provide that pork and pork products may be imported into the United States from regions where these diseases exist only if they have been cooked or cured as specified in our regulations. Acceptable cooking or curing methods include curing and drying so that the product does not require refrigeration, cooking in a hermetically sealed container so that the final product is shelf stable, cooking in tubes so the internal temperature of the meat reaches 175 [deg]F (79.4 [deg]C), or, in the case of perishable canned hams, cooking by method other than flash heating to an internal temperature of 156 [deg]F (69 [deg]C). These cooking and curing processes protect the United States against an introduction of the diseases of concern by inactivating the viruses which cause them.

The Animal and Plant Health Inspection Service (APHIS) has received a request from a United States importer for permission to import cooked pork skins (pork rinds) from Brazil, a region affected with FMD, SVD, ASF, and CSF. Such imports are not permitted under our current regulations. However, a risk assessment \1\ performed by the Centers for Epidemiology and Animal Health of APHIS' Veterinary Services program indicates that pork skins cooked in the manner described by the requester are not a potential pathway for entry of foreign animal disease agents into the United States. This is because the cooking process is sufficient to deactivate the pathogens in question. \1\ The risk assessment, titled ``Risk Assessment of Pork Rinds from Brazil,'' can be viewed on the Regulations.gov Web site (see ADDRESSES above for instructions for accessing Regulations.gov) or in our reading room. A copy may also be obtained from the person listed under FOR FURTHER INFORMATION CONTACT.

Two methods of cooking pork skins were examined. The first method is a onestep cooking process, during which the pork skins are held in cooking oil that is maintained at a temperature of 237240 [deg]F (114 116 [deg]C) for at least 80 minutes. Including heating and cooling times, the cooking time for the onestep process is about 2.5 hours. The second is a twostep process in which the pork rinds are dry cooked at 500750 [deg]F (260399 [deg]C) for approximately 210 minutes after which they are cooked in hot oil at 220250 [deg]F (104121 [deg]C) for an additional 150 minutes. The total cooking time in the twostep process is about 6 hours.

Both these cooking processes exceed the heat inactivation requirement commonly cited in the literature for the four viruses of concern. They also exceed the requirements for cooked meat described in the regulations.

We are, therefore, proposing to amend the regulations in part 94 to allow for the importation of cooked pork skins from regions with FMD, SVD, ASF, and CSF under the conditions described in this proposed rule. Specifically, we would amend the FMDrelated provisions in Sec. 94.4, the ASFrelated provisions in Sec. 94.8, the CSFrelated provisions in Sec. 94.9, and the SVDrelated provisions in Sec. 94.12 by adding a new paragraph to each section that authorizes the importation of pork skins
[[Page 37893]]
if they have been cooked using one of the methods described above. Each of those sections also contains additional requirements that must be met in order for pork or pork products to be imported into the United States from regions where these diseases exist. These additional requirements include provisions that the pork or pork products be processed at an approved facility which is eligible to have its products imported into the United States under the Federal Meat Inspection Act (21 U.S.C. 601 et seq. ) and the regulations in 9 CFR part 327, and that shipments of cooked pork or pork products must be accompanied by a certificate issued by an official of the National Government of the region of origin who is authorized to issue the foreign meat inspection certificate required under 9 CFR part 327. Executive Order 12866 and Regulatory Flexibility Act

This proposed rule has been reviewed under Executive Order 12866. The 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.

We are proposing to amend the regulations to allow for the importation of cooked pork skins from regions affected with FMD, SVD, ASF, and CSF under certain conditions. We are taking this action after preparing a risk assessment that concluded that the cooking methods examined are sufficient to inactivate the pathogens of concern. This action would relieve restrictions on the importation of cooked pork skins while continuing to protect against the introduction of those diseases of concern.

Pork rinds are a snack food that is made from deepfried or microwavable pork rind pellets (cooked pig skins). The size of the pork rind snack manufacturing industry is considered to be relatively small. Available Economic Census data do not provide specific information on the pork rind snack industry. The Census categorizes the pork rind industry with certain other snack foods (excluding potato chips, corn chips, and related products) under ``other snack food manufacturing,'' and the product classification code is 3119197.\2\ As table 1 shows, the industry is composed of a relatively small number of
establishments. On average, these establishments employ fewer than 100 employees and therefore most, if not all, of the establishments can be considered to be small entities.\3\
\2\ The products included within this code are other chips, sticks, hard pretzels, bacon rinds, popcorn (except candied), etc., excluding crackers, soft pretzels, and nuts.
\3\ The U.S. Small Business Administration (SBA) defines establishments engaged in other snack food manufacturing (North American Industry Classification System code 311919) as small if their employees number no more than 500.
Table 1.Snack Food Manufacturing, Excluding Potato Chips, Corn Chips, and Related Products, 2002 Total cost of Total value of Number of establishments Number of Payroll ($ materials ($ shipments ($ employees million) million) million) 47.............................................. 4,284 $131 $365 $959 Source: 2002 Economic Census (http://www.census.gov/prod/ec02/ec0231i311919.pdf).

Although no clearcut method exists to disaggregate the porkrind snack manufacturers from the other snack manufacturers in the Census data, we can use available sales information for porkrind snack food to approximate the size of this segment of the industry. Currently two trade associations keep track of porkrind snack sales: The Snack Food Association of Alexandria, VA, reported sales $562 million (21.6 percent) \4\ and Information Resources, Inc. of Chicago, IL, reported sales of $98 million (16.8 percent).\5\
\4\ Sales in 2005, which includes all distribution channels. Percentage shows the change from previous year.
\5\ Total supermarket, drug store, and mass merchandising sales for the 52 weeks ending May 21, 2006, excluding WalMart. Percentage shows the change from previous year.

Comparing these trade association data to the $959 million shipment value reported in the Census data for ``other snack food
manufacturing,'' sales by the porkrind snack manufacturers may represent as much as onehalf of sales for this product category. In terms of the sales trend, it is notable that both trade associations reported about 20 percent declines in sales from the previous year. The slowdown in sales may at least partially reflect a shift in consumers' orientation away from the highprotein/lowcarbohydrate diet that seems to have peaked in 2004.

Pork Rind Pellet Manufacturers

Pork rind pellets are made from cooked pork skins and are the main material used in making pork rind snacks. The number and size of the pork rind pellet manufacturers (including manufacturers of pork cracklings \6\) are relatively small. Only 17 establishments comprise this industry, and they had a total shipment value in 2002 of $196 million, as shown in table 2.
\6\ Cracklings are produced from pelletscooked pork skins that are thicker and meatier than rinds.
Table 2.Pork Rind Pellet Manufacturers, 2002 Number of companies Shipment Product code Product description with shipments value ($ Estimated shipment of $100,000 million) volume \1\ or more 311611R121....................... Pork rind pellets, 5 $45 155.9 million including pork pounds (70,715 cracklings, made in metric tons). slaughtering plants.
311612A441....................... Pork rind pellets, 12 151 56 million pounds including pork (91,580 metric cracklings, made from tons). purchased carcasses.
\1\ Although shipment volumes for pork rind pellets are not available in the 2002 Census data, the 1997 Census data indicate that 123.7 million pounds were shipped for product code 311612A441, with a total shipment value of $130 million. The 2002 figures are calculated based on this information. [[Page 37894]]
Source: 2002 Economic Census.

U.S. Import and Export of Pork Rind Products

Trade data \7\ specific to pork rinds are not available; instead, three harmonized tariff schedule (HTS) data for the edible offal of swine are examined and summarized.^{8 9} Tables 3 and 4 summarize the import and export trend for these three HTS codes.\10\ \7\ Source: U.S. International Trade Commission Interactive Tariff and Trade Dataweb.
\8\ HTS 020649Edible offal of swine, frozen: Other; HTS 0206490050Edible offal of swine, frozen, pork rind (Note: This classification is no longer available in the 2007 HTS); HTS 1602494000Other prepared or preserved meat, meat offal, or blood of swine: Other, not containing cereals or vegetables, other. \9\ Of those, only one HTS is specifically for pork rind (frozen). The other two include other edible offal of frozen, prepared, or preserved swine.
\10\ ``Landed DutyPaid Value,'' which is the sum of the cost, insurance, and freight (CIF) value plus calculated duties, is used for the trade data.

The United States has imported a relatively small volume of edible offal of swine, including pork rinds, at an average of 7,000 metric tons annually with a value of $12 million over the past 5 years. Although the import of swine offal peaked in 2005 and has declined since, U.S. exports are relatively stable. The United States exported, on an average, about 24,000 metric tons with an average value of $24 million, and the United States has been a consistent net exporter of the edible offal of swine over the past 5 years.
Table 3.U.S. Imports of Edible Offal of Swine, Frozen, Prepared, or Preserved 2002 2003 2004 2005 2006
Country Million Metric Million Metric Million Metric Million Metric Million Metric dollars tons dollars tons dollars tons dollars tons dollars tons Canada.................................... $2.9 2,901 $4.3 3,553 $10.5 4,481 $7.0 6,635 $5.7 6,274 Denmark................................... 8.1 2,183 6.8 2,281 7.5 1,893 2.1 2,247 2.1 1,127 Mexico.................................... 0.0 0 1.1 0 0.6 108 0.0 79 0.0 0 Others.................................... 0.3 177 0.6 144 0.6 102 0.4 174 0.0 27

Total................................. 11.3 5,261 12.8 5,978 19.2 6,584 9.5 9,135 7.8 7,428 Source: U.S. International Trade Commission, HTS 0206490000, 0206490050, 1602494000. Table 4.U.S. Exports of Edible Offal of Swine, Frozen, Prepared, or Preserved 2002 2003 2004 2005 2006
Country Million Metric Million Metric Million Metric Million Metric Million Metric dollars tons dollars tons dollars tons dollars tons dollars tons Mexico.................................... $10.1 15, 405 $11.0 16, 747 $19.4 24,325 $18.3 21,235 $16.5 22,078 Japan..................................... 9.4 3,102 3.3 1,410 0.9 272 1.4 435 4.4 1,494 Korea..................................... 0.5 358 1.6 776 1.8 848 2.2 1,029 3.0 1,330 Hong Kong................................. 2.3 1,097 1.4 679 1.2 353 1.1 261 1.5 330 Others.................................... 3.8 2,518 2.3 2,720 1.1 1,584 1.1 853 0.8 695

Total................................. 26.1 22,120 19.6 22,332 24.4 27,382 24.1 23,813 26.2 25,927 Source: U.S. International Trade Commission.

Export of Pork Rind Products From Brazil

Two HTS categories that include pork skins are used to examine the status of Brazilian exports of pork rinds: 160249 (Meat, Meat Offal or Mixtures of Swine, Prepared or Preserved, Nesoi \11\) and 020649 (Offal of Swine Except Livers, Edible, Frozen).
\11\ Not elsewhere specified or indicated.
[[Page 37895]]
Table 5.Export of Swine Offal From Brazil 2003 2004 2005
Country Per Per Per Million Metric metric Million Metric metric Million Metric metric % share dollars tons ton dollars tons ton dollars tons ton of volume Hong Kong................................. $7.2 9.199 781.9 $9.5 10.347 916.9 $15.2 14,537 1,046.9 65.2 Russia.................................... 3.4 4,621 725.3 2.2 2,897 750.1 4.1 4,689 876.8 21.0 Others.................................... 2.3 3,882 602.7 3.3 3,493 942.7 3.0 3,064 960.1 13.7

World Total........................... 12.9 17,702 727.8 15.0 16,737 893.4 22.3 22,290 999.2 100 Source: U.S. Census Bureau, as reported by Global Trade Information Services, Inc.

Brazil exports a relatively small amount of swine offal products. On an average, it exports about 19,000 metric tons annually with a total value of $17 million. Hong Kong is by far the largest buyer of Brazilian swine offal, accounting for almost twothirds of total exports. Russia is the second largest buyer; however, its imports are limited to frozen swine offal (HTS 0206491).

In terms of the aggregate world export of swine offal products, Brazil is ranked around tenth in both HTS categories with its share accounting for about 1 percent of world trade.\12\
\12\ Top exporters of HTS 020649 in 2005 were the United States (18 percent share), Germany (16 percent), Canada (13 percent), and Denmark (11 percent). For HTS 160249, top exporters were China (25 percent), Denmark (14 percent), Germany (12 percent), and the United States (8 percent).

Expected Economic Impact

The expected impact of the proposed rule on the U.S. economy is illustrated under two scenarios: 3 million pounds (1,361 metric tons) and 4 million pounds (1,814 metric tons) of pork rind pellets imported from Brazil.\13\ These scenarios reflect the initial plan of the U.S. importer who requested the proposed rule.
\13\ We used a nonspatial, partial equilibrium welfare model to quantify the economic effects of the proposed rule. In addition to the importer's plan to import 3 to 4 million pounds, the price and quantity data explained in previous sections are used as inputs.

Table 6 summarizes the estimated price effects and impacts for U.S. producers and consumers under these two scenarios, using a nonspatial, partial equilibrium welfare model. The changes are minor; the model estimates that the net welfare benefit would be about $19,000 under the first scenario (3 million pounds imported) and $30,000 under the second scenario (4 million pounds imported). These welfare measures reflect a reduction in domestic production that would be more than offset by an increase in consumption. The changes in domestic production and consumption would be less than 1 percent. It is, therefore, safely assumed that the proposed regulation would not have a significant economic impact on small entities in the pork rind industry. APHIS welcomes information that the public may provide on the status of the pork rind manufacturing industry and other related information that could be used to further evaluate the impact of the proposed rule. Table 6.Estimated Impact on the U.S. Economy of Pork Offal Imports From Brazil
Pork rind pellets imported from Brazil
1,361 metric 1,814 metric tons (3 tons (4 million million pounds) pounds) Change in U.S. consumption, metric ton.. 680.8 840.8 Change in U.S. production, metric ton... 730.2 973.2 Change in price of pork rind pellets, $17.08 $22.76 dollars per metric ton.................
Change in consumer welfare, thousand $1,577 $2,104 dollars................................
Change in annual net welfare, thousand $19 $30 dollars................................

Under these circumstances, the Administrator of the Animal and Plant Health Inspection Service has determined that this action would not have a significant economic impact on a substantial number of small entities.

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 94

Animal diseases, Imports, Livestock, Meat and meat products, Milk, Poultry and poultry products, Reporting and recordkeeping requirements.

Accordingly, we propose to amend 9 CFR part 94 as follows: [[Page 37896]]
PART 94RINDERPEST, FOOTANDMOUTH DISEASE, FOWL PEST (FOWL
PLAGUE), EXOTIC NEWCASTLE DISEASE, AFRICAN SWINE FEVER, CLASSICAL SWINE FEVER, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND RESTRICTED IMPORTATIONS

1. The authority citation for part 94 continues to read as follows:

Authority: 7 U.S.C. 450, 77017772, 77817786, and 83018317; 21 U.S.C. 136 and 136a; 31 U.S.C. 9701; 7 CFR 2.22, 2.80, and 371.4.

2. Section 94.4 is amended as follows:

a. In paragraph (b)(7), by removing the citation ``Sec. 94.4(b)(4) or (b)(5)'' and adding the words ``paragraph (b)(4) or (b)(5) of this section'' in its place.

b. By redesignating paragraphs (b)(8) and (b)(9) as paragraphs (b)(9) and (b)(10), respectively, and adding a new paragraph (b)(8) to read as set forth below.

c. In newly redesignated paragraph (b)(9)(ii), by removing the citation ``(b)(8)(i)'' and adding the citation ``(b)(9)(i)'' in its place.
Sec. 94.4 Cured or cooked meat from regions where rinderpest or footandmouth disease exists.
* * * * *
(b) * * *
(8) Pork rind pellets (pork skins). Pork rind pellets (pork skins) must be cooked in one of the following ways:
(i) Onestep process. The pork skins must be cooked in oil for at least 80 minutes when oil temperature is consistently maintained at a minimum of 114 [deg]C.
(ii) Twostep process. The pork skins must be drycooked at 260 [deg]C for approximately 210 minutes after which they must be cooked in hot oil (deepfried) at 104 [deg]C for an additional 150 minutes. * * * * *

3. Section 94.8 is amended as follows:

a. By redesignating paragraph (a)(4) as paragraph (a)(5), and by adding a new paragraph (a)(4) to read as set forth below.

b. In paragraph (a)(3)(i), by removing the citation ``(a)(4)'' and adding the words ``(a)(5) of this section'' in its place.
Sec. 94.8 Pork and pork product from regions where African swine fever exists or is reasonably believed to exist.
* * * * *
(a)* * *
(4) The pork product is pork rind pellets (pork skins) that were cooked in one of the following ways in an establishment that meets the requirements in paragraph (a)(5) of this section:
(i) Onestep process. The pork skins must be cooked in oil for at least 80 minutes when oil temperature is consistently maintained at a minimum of 114 [deg]C.
(ii) Twostep process. The pork skins must be drycooked at a minimum of 260 [deg]C for approximately 210 minutes after which they must be cooked in hot oil (deepfried) at a minimum of 104 [deg]C for an additional 150 minutes.
* * * * *

4. Section 94.9 is amended as follows:

a. By adding a new paragraph (c)(1)(iv) to read as set forth below.

b. In paragraph (c)(2), by removing the citation ``(c)(1)(ii) or (iii)'' and adding the citation ``(c)(1)(ii), (iii), or (iv)'' in its place.

c. In paragraph (c)(3), by removing the citation ``(c)(1)(ii) or (iii)'' both places it occurs and adding the words ``(c)(1)(ii), (iii), or (iv) of this section'' in its place.
Sec. 94.9 Pork and pork products from regions where classical swine fever exists.
* * * * *
(c)* * *
(1)* * *
(iv) Pork rind pellets (pork skins) originating in regions where classical swine fever is known to exist may be imported into the United States provided they have been cooked in one of the following ways: (A) Onestep process. The pork skins must be cooked in oil for at least 80 minutes when oil temperature is consistently maintained at a minimum of 114 [deg]C.
(B) Twostep process. The pork skins must be drycooked at a minimum of 260 [deg]C for approximately 210 minutes after which they must be cooked in hot oil (deepfried) at a minimum of 104 [deg]C for an additional 150 minutes.

* * * * *

5. In Sec. 94.12, a new paragraph (b)(1)(vi) is added to read as follows:
Sec. 94.12 Pork and pork products from regions where swine vesicular disease exists.
* * * * *
(b) * * *
(1) * * *
(vi) Pork rind pellets (pork skins) must be cooked in one of the following ways:
(A) Onestep process. The pork skins must be cooked in oil for at least 80 minutes when oil temperature is consistently maintained at a minimum of 114 [deg]C.
(B) Twostep process. The pork skins must be drycooked at a minimum of 260 [deg]C for approximately 210 minutes after which they must be cooked in hot oil (deepfried) at a minimum of 104 [deg]C for an additional 150 minutes.

* * * * *

Done in Washington, DC, this 26th day of June 2008. Kevin Shea,
Acting Administrator, Animal and Plant Health Inspection Service. [FR Doc. E815014 Filed 7108; 8:45 am]
BILLING CODE 341034P

FOR FURTHER INFORMATION CONTACT Dr. Karen A. James-Preston, Director, Technical Trade ServicesProducts, National Center for Import and Export, VS, APHIS, 4700 River Road Unit 40, Riverdale, MD 207371231; (301) 7348172.