2024-31140RuleWallet

Government Creates Math Formula for Grain Inspection Fees

Published Date: 1/6/2025

Rule

Summary

The USDA’s Federal Grain Inspection Service is updating how it calculates fees for its services starting February 5, 2025. These new formulas make sure fees fairly cover costs and keep a healthy money reserve for smooth operations. If you use FGIS services, expect clearer, consistent fees that adjust yearly to keep things running strong.

Analyzed Economic Effects

5 provisions identified: 0 benefits, 4 costs, 1 mixed.

New Standard Formulas for FGIS Fees

Starting February 5, 2025, FGIS will use standardized formulas to calculate hourly and unit fees so fees cover costs and help rebuild an operating reserve of 3 to 6 months. The formulas require annual fee adjustments and separate hourly fee calculations from the five-year rolling average used for tonnage fees.

New Tonnage Fee Calculations

FGIS will set national and local tonnage fees using prior fiscal year program administrative costs divided by the average yearly tons over the previous 5 fiscal years. Field Office outbound grain will be charged the national tonnage fee plus the appropriate local tonnage fee, while exported grain inspected by delegated States (excluding certain land carrier shipments) will be assessed the national tonnage fee only.

Supervision Tonnage Fee and Reserve Rule

FGIS will calculate Supervision tonnage fees by adding prior fiscal year supervision program costs plus an operating reserve adjustment, then dividing by the average yearly tons over the previous 5 fiscal years. If the calculated supervision fee is zero or negative, FGIS will suspend collection of that supervision tonnage fee for 1 calendar year.

Registration Certificate Fee Formula

FGIS will publish registration certificate and renewal fees annually and will calculate the fee as the noncontract hourly rate multiplied by 5. If you operate a business that buys, handles, weighs, or transports grain for sale in foreign commerce (or are in a control relationship), you must apply and pay the published fee.

Weekend/Holiday Minimum and Additional Charge

For services on Saturdays, Sundays, and holidays, FGIS will charge a 2-hour minimum. If unit-fee revenue for a service is less than what would have been collected at the applicable hourly rate, FGIS will assess an additional charge equal to the difference.

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Key Dates

Published Date
Rule Effective
1/6/2025
2/5/2025

Department and Agencies

Department
Independent Agency
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