Department of Agriculture, Agricultural Marketing Service: Mandatory Country of Origin Labeling of Beef, Pork, Lamb, Chicken, Goat Meat, Perishable Agricultural Commodities, Peanuts, Pecans, Ginseng, and Macadamia Nuts
Highlights
GAO reviewed the Department of Agriculture's Agricultural Marketing Service's (AMS) new rule on mandatory country of origin labeling of beef, pork, lamb, chicken, goat meat, perishable agricultural commodities, peanuts, ginseng, and macadamia nuts. GAO found that (1) the interim final rule requires retailers to notify customers of the country of origin of certain commodities and contains definitions requirements for consumer notification and product marking and details on the recordkeeping requirements of suppliers and retailers; and (2) AMS complied with the applicable requirements in promulgating the rule.
Department of Agriculture, Agricultural Marketing Service: Mandatory Country of Origin Labeling of Beef, Pork, Lamb, Chicken, Goat Meat, Perishable Agricultural Commodities, Peanuts, Pecans, Ginseng, and Macadamia Nuts, GAO-08-1093R, August 13, 2008
The Honorable Tom Harkin
Chairman
The Honorable Saxby Chambliss
Ranking Minority Member
Committee on Agriculture, Nutrition, and Forestry
The Honorable Collin C. Peterson
Chairman
The Honorable Bob Goodlatte
Ranking Minority Member
Committee on Agriculture
House of Representatives
Subject: Department of Agriculture, Agricultural Marketing Service: Mandatory Country of Origin Labeling of Beef, Pork, Lamb, Chicken, Goat Meat, Perishable Agricultural Commodities, Peanuts, Pecans, Ginseng, and Macadamia Nuts
Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Agriculture (USDA), Agricultural Marketing Service, entitled Mandatory Country of Origin Labeling of Beef, Pork, Lamb, Chicken, Goat Meat, Perishable Agricultural Commodities, Peanuts, Pecans, Ginseng, and Macadamia Nuts (RIN: 0581-AC26). We received the rule and it was published in the Federal Register as an interim final rule with request for comments on
The interim final rule implements statutory requirements in sections of the Farm Security and Rural Investment Act of 2002 and the Food, Conservation, and Energy Act of 2008. Pub. L. No. 107-171, sect. 10816, 116 Stat. 134, 533–36 (
Enclosed is our assessment of the USDA's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Our review indicates that USDA complied with the applicable requirements. USDA's submission to the Comptroller General did not include a description of any actions relevant to sections 202–205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. sections 1532–1535.
If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Michael R. Volpe, Assistant General Counsel, at (202) 512-8236.
signed
Robert J. Cramer
Associate General Counsel
Enclosure
cc: Lloyd C. Day
Administrator, Agricultural
Marketing Service
Department of Agriculture
ENCLOSURE
REPORT UNDER 5 U.S.C. sect. 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
DEPARTMENT OF AGRICULTURE,
AGRICULTURAL MARKETING SERVICE
ENTITLED
"MANDATORY COUNTRY OF ORIGIN LABELING OF BEEF, PORK, LAMB, CHICKEN, GOAT MEAT, PERISHABLE AGRICULTURAL COMMODITIES, PEANUTS, PECANS, GINSENG, AND MACADAMIA NUTS"
(RIN: 0581-AC26)
(i) Cost-benefit analysis
The Department of Agriculture (USDA) analyzed the costs and benefits of this interim final rule. USDA determined that the estimated benefits associated with this interim final rule are likely to be small, difficult to quantify, and accrue mainly to those consumers who desire country of origin information. USDA estimated that the first-year incremental costs for directly affected firms will be $2.5 billion and the overall net costs to the
(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. sections 603–605, 607, and 609
USDA determined that this interim final rule will have a significant economic impact on a substantial number of small entities. Therefore, the agency prepared a regulatory analysis of the impacts under the Act. USDA estimated that approximately 1,256,000 establishments owned by approximately 1,222,000 firms will be directly or indirectly affected by this rule and that the direct incremental costs are approximately $2.517 billion. Of these firms, USDA estimates that 83 percent of the retailers are considered small; 94 percent of wholesalers are small; 95 percent of manufacturers are small; and between 99 and 82 percent of producers, depending on the commodity produced, are small.
(iii) Agency actions relevant to sections 202–205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. sections 1532–1535
USDA's submission to the Comptroller General did not describe any actions relevant to the Act.
(iv) Other relevant information or requirements under acts and executive orders
Administrative Procedure Act, 5 U.S.C. sections 551 et seq.
USDA promulgated this interim final rule using the notice and comment procedures found in the Administrative Procedure Act. 5 U.S.C. sect. 553. On
Paperwork Reduction Act, 44 U.S.C. sections 3501–3520
This interim final rule includes information collection requirements under the Act. USDA has submitted the information collection requirements associated with this rule to the Office of Management and Budget (OMB) for its review. USDA estimates that the total paperwork burden of this rule will be approximately $624 million, of which $125 million is for initial recordkeeping costs and $499 million is for maintenance recordkeeping costs.
Statutory authorization for the rule
USDA is promulgating this interim final rule to implement sections of the Farm Security and Rural Investment Act of 2002 and the Food, Conservation, and Energy Act of 2008. Pub. L. No. 107-171, sect. 10816, 116 Stat. 134, 533–36 (
Executive Order No. 12,866
USDA determined that this interim final rule is significant under the order because it will have an effect on the economy of $100 million or more in any one year. The rule has been reviewed by OMB.
Executive Order No. 13,132 (Federalism)
This interim final rule does have federalism implications under the order. USDA concluded that Congress intended to preempt state law in this instance.
Executive Order No. 12,988 (Civil Justice Reform)
USDA determined that this interim final rule is not intended to have a retroactive effect. State and local jurisdictions are preempted from creating or operating country of origin labeling programs for the commodities covered by this rule.