Arizona Department of Agriculture Establishes New Phytosanitary Fee Structure
ARIZONA -- The Arizona Department of Agriculture recently adopted a new formula regarding the assignment of a fee for Federal Phytosanitary Certificates (FPCs).
The formula is based only upon actual hours and mileage expended only on the necessary inspection, certification and related activities for this export program – there are no overhead costs included:
(A) Total hours recorded X hourly rate for staff (Average Salary + Benefits cost for staff reporting activity) = $X cost
(B) Total miles recorded X per mile rate (vehicle cost/mile from motor pool billing for staff reporting miles) = $X cost
(C) Total hours and mileage cost = $X total cost (A+B above)
(D) Total number of FPCs actually issued (not sold) = X certificates
(E) Total cost per certificate = $X (C divided by D above)
For the Fiscal Year ‘08, based on FY07 data as prescribed above, (E) would then be the cost charged for FPCs in Fiscal Year ‘08 regardless of operating cost increases (gas, salaries, etc.) incurred during the Fiscal Year ‘08. This process would be repeated each fiscal year. The only caveat would be the assignment of a Federal Administrative fee that is possibly in the works. Nothing has materialized yet in Federal rule, so this issue may be well into the future.
With this as a basis for a new formula to establish a fee, the following schedule was agreed upon with respect to the assignment of a fee structure:
- A fee for FPCs will be determined by early July of each fiscal year beginning with the Fiscal Year ’08 (07-01-07)
- The fee will be based on the historical data summarized for the previous fiscal year.
- A projected fee range will be published in early April (now estimated at $33-$35), and each fiscal year subsequent, that is based on a 9-month summary of the data to facilitate budget development and planning by affected stakeholders.
