[Federal Register: March 22, 2004 (Volume 69, Number 55)]
[Proposed Rules]
[Page 13262-13269]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22mr04-20]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 13262]]
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
7 CFR Part 319
[Docket No. 02-081-2]
RIN 0579-AB77
Importation of Clementines, Mandarins, and Tangerines From Chile
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Proposed rule.
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SUMMARY: We are proposing to amend the fruits and vegetables
regulations to allow the importation, under certain conditions, of
clementines, mandarins, and tangerines from Chile into the United
States. Based on the evidence in a recent pest risk assessment and an
accompanying risk management document, we believe these articles can be
safely imported from all provinces of Chile, provided certain
conditions are met. This action would provide for the importation of
clementines, mandarins, and tangerines from Chile into the United
States while continuing to protect the United States against the
introduction of plant pests.
DATES: We will consider all comments that we receive on or before May
21, 2004.
ADDRESSES: You may submit comments by any of the following methods:
Postal Mail/Commercial Delivery: Please send
four copies of your comment (an original and three copies) to Docket
No. 02-081-2, Regulatory Analysis and Development, PPD, APHIS, Station
3C71, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please state
that your comment refers to Docket No. 02-081-2.
E-mail: Address your comment to
regulations@aphis.usda.gov. Your comment must be contained in the body
of your message; do not send attached files. Please include your name
and address in your message and ``Docket No. 02-081-2'' on the subject
line.
Agency Web site: Go to http://www.aphis.usda.gov/ppd/rad/cominst.html
for a form you can use to
submit an e-mail comment through the APHIS Web site.
Federal eRulemaking Portal: Go to http://www.regulations.gov
and follow the instructions for locating this
docket and submitting comments.
Reading Room: You may read any comments that we receive on this
docket in our reading room. The reading room is located in room 1141 of
the USDA South Building, 14th Street and Independence Avenue SW.,
Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m.,
Monday through Friday, except holidays. To be sure someone is there to
help you, please call (202) 690-2817 before coming.
Other Information: You may view APHIS documents published in the
Federal Register and related information, including the names of groups
and individuals who have commented on APHIS dockets, on the Internet at
http://www.aphis.usda.gov/ppd/rad/webrepor.html.
FOR FURTHER INFORMATION CONTACT: Dr. Inder P. Gadh, Import Specialist,
Phytosanitary Issues Management Staff, PPQ, APHIS, 4700 River Road Unit
140, Riverdale, MD 20737-1236; (301) 734-5210.
SUPPLEMENTARY INFORMATION:
Background
The regulations in ``Subpart--Fruits and Vegetables'' (7 CFR 319.56
through 319.56-8, referred to below as the regulations), prohibit or
restrict the importation of fruits and vegetables into the United
States from certain parts of the world to prevent the introduction and
dissemination of plant pests. The Government of the Republic of Chile
has requested that the Animal and Plant Health Inspection Service
(APHIS) amend the regulations to allow the importation into the United
States of clementines, mandarins, and tangerines from Chile under
certain conditions.
To evaluate the risks associated with the importation of
clementines, mandarins, and tangerines from Chile, a draft pest risk
assessment entitled ``Importation of Fresh Commercial Citrus Fruit:
Clementine (Citrus reticulata Blanco var. `Clementine'), Mandarin
(Citrus reticulata Blanco), and Tangerine (Citrus reticulata Blanco)
from Chile into the United States: A Pathway Initiated Plant Pest Risk
Assessment'' (revised September 2002) was prepared. An addendum to this
pest risk assessment was prepared in September of 2003. The Servicio
Agricola y Ganadero, the national plant protection organization (NPPO)
of Chile, prepared a risk management document entitled ``Measures
Suggested for Quarantine Pest Risk Management in Clementines, Mandarin
Oranges and Tangerines Exported from Chile to the United States of
America'' (March 2002), which accompanied the draft pest risk
assessment.
On October 22, 2002, we published a notice in the Federal Register
(67 FR 64862-64863, Docket No. 02-081-1) in which we advised the public
of the availability of the draft pest risk assessment and its
accompanying risk management document. We solicited comments concerning
those documents for 60 days ending December 23, 2002, and received no
comments by that date.
The pest risk assessment and the risk management document may be
viewed on the Internet at http://www.aphis.usda.gov/ppq/pra/, or in our
reading room (information on the location and hours of the reading room
is provided under the heading ADDRESSES at the beginning of this
document). You may also request copies of those documents from the
person listed under FOR FURTHER INFORMATION CONTACT.
Based on the evidence in the pest risk assessment and its
accompanying risk management document, we believe that clementines,
mandarins, and tangerines can be safely imported from all provinces of
Chile, provided certain conditions are met. Therefore, we are proposing
to add a new Sec. 319.56-2ll to the regulations to provide for the
importation of clementines, mandarins, and tangerines from Chile.
Permit
Under paragraph (a) of the proposed regulations, a specific written
permit issued in accordance with Sec. 319.56-3 would be required to
import clementines, mandarins, and tangerines from Chile. Importers
would be required to apply to the Plant Protection and Quarantine (PPQ)
program for a permit in advance of the proposed shipments, stating in
the application the country or locality of origin of the fruits, the
port of first arrival, and the name and
[[Page 13263]]
address of the importer in the United States to whom the permit should
be sent. Upon receipt of the application and upon approval by an
inspector, a permit would be issued specifying the conditions of entry,
which will be discussed in the following paragraphs, and the port of
entry. In accordance with Sec. 319.56-4, a permit, once issued, could
be amended or withdrawn by the Administrator at any time if it is
determined that the importation of the fruit presents a risk.
Cold Treatment
One of the four pests of concern identified in the risk assessment
document is Ceratatis capitata, a fruit fly more commonly known as the
Mediterranean fruit fly (Medfly). To address the risk presented by this
pest, paragraph (b) of the proposed regulations would require the cold
treatment of fruit grown in areas of Chile where Medfly is known to
occur, which include the province of Arica as well as regulated areas
in Chile's Metropolitan Region. Shipments from these areas would
require cold treatment in accordance with the PPQ Treatment Manual and
would also be required to be accompanied by documentation indicating
that the cold treatment was initiated in Chile. Fruit from these areas
would also have to meet all other proposed requirements.
Importation Options
The second of the four pests of concern identified in the risk
assessment document is Brevipalpus chilensis, a mite that is not easily
detected through visual inspection. To address the risk presented by
this pest, paragraph (c) of the proposed regulations would provide for
the use of two options, a systems approach and fumigation. The systems
approach would allow for the importation of the fruit without
fumigation, which is a more expensive option. These options are
discussed in detail in the following paragraphs.
The remaining two pests of concern are the fruit leaf folders
Proeulia auraria and Proeulia chrysopteris, which are external feeders
that can be detected through visual inspection when either the pests
themselves are seen externally or the fruit shows external signs of
infestation. We believe that the risks presented by these pests can be
addressed using the same two options we are proposing to address B.
chilensis because the necessary visual inspection, which is the primary
means of mitigation for these pests, will be a component of both
options. In the proposed systems approach, one of the proposed
requirements is preclearance inspection. A similar preclearance program
using inspection to prevent the introduction of Proeulia spp. is
currently in use for apricots, nectarines, peaches, plumcot, and plums
imported into the United States from Chile (see Sec. 319.56-2s of the
regulations). If the fumigation option were used, the fruit would be
fumigated in accordance with the PPQ Treatment Manual, which is
incorporated by reference in Sec. 300.1 of the regulations, and then
inspected by an APHIS inspector after completion of the treatment prior
to export from Chile to ensure that the fruit was free of infestation
of any pests of Proeulia spp.
Systems Approach
The first option being proposed by APHIS under which clementines,
mandarins, and tangerines could be imported into the United States from
Chile is preclearance of the commodities using a systems approach to
phytosanitary security. Under a systems approach, APHIS defines a set
of phytosanitary procedures, at least two of which have an independent
effect in mitigating pest risk associated with the movement of
commodities, whereby fruits and vegetables may be imported into the
United States from countries that are not free of certain plant pests.
The systems approach in this case would consist of a series of
complementary phytosanitary measures that include: Low prevalence
production site certification, post-harvest processing, and
phytosanitary inspection. Each of these measures is explained in detail
in the following paragraphs. Once the clementines, mandarins, or
tangerines have passed through this series of pest mitigation measures,
inspectors of the NPPO of Chile would issue a phytosanitary certificate
stating that the fruit has been inspected and found free of any
evidence of plant pests. A phytosanitary certificate would have to
accompany each shipment of clementines, mandarins, or tangerines
offered for importation into the United States from Chile.
Low Prevalence Production Site Certification
The pest risk management document prepared by Chile outlined a
series of phytosanitary measures whose implementation would mitigate
the potential risk of introducing quarantine pests into the United
States through the importation of clementines, mandarins, and
tangerines from Chile. In order to be eligible to participate in the
systems approach, each production site would be required to implement
the mitigation measures discussed in the pest risk management document.
The first of these measures, low prevalence production site
certification, would require each production site to register annually
with the NPPO of Chile with information including: (1) Production site
name, (2) grower, (3) municipality, (4) province, (5) region, (6) area
planted to each species, (7) number of plants/hectares/species, and (8)
approximate date of harvest. This information would be used to monitor
the phytosanitary health of the production site and to track the origin
of shipments. These production sites would then participate in a
program of certification of low prevalence, which would be carried out
by the NPPO of Chile. A random sample of fruit would be collected from
each registered production site 1 to 30 days prior to harvest. The
fruit from each sample would undergo a washing process that allows for
the detection of mites. This same process has proven to be effective in
the detection of B. chilensis in other products and clementines.\1\ The
washing process involves placing the fruit and pedicels in sieves,
sprinkling them with a liquid soap and water solution, washing them
with water at high pressure, washing them with water at low pressure,
and then repeating the process. Once the fruit has been washed
thoroughly, all contents of the sieves, which collect everything that
is washed off of the fruit, are put on a Petri dish and analyzed for
the presence of mites.
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\1\ See Annex 7 of the risk management document.
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Only production sites certified by the NPPO of Chile as low
prevalence would be eligible to export under this systems approach.
Under this systems approach, a random sample of fruit would be taken
from each production site. In order to qualify as a low prevalence
production site, a production site would be required to have no mites
detected in the fruit sampled. Each production site would have only one
opportunity per harvest season to qualify for the certification program
since the verification process would occur before the beginning of each
harvest season. Certification of low prevalence would be valid for one
harvest season only. A similar certification of low prevalence program
is currently in use for kiwifruit imported into the United States from
Chile.
In order to achieve low prevalence, production sites could employ
production site control, which is discussed in the pest risk management
document. Production site control consists of treating the production
site with detergent or oil to reduce the
[[Page 13264]]
populations of various pests. Studies cited in the risk management
document indicate an efficacy rate of 92 percent for the detergent
treatment and 97.3 percent for the oil treatment in the clementine
production sites sampled in the control of B. chilensis.\2\
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\2\ See Annex 3 of the risk management document.
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Post-Harvest Processing
Once the production site has been certified as a low prevalence
production site, the fruit would be picked and would then undergo post-
harvest commercial processing. In the normal fruit packing process
already in place in Chile for other commodities, fruit undergoes the
following steps: (1) Washing, (2) rinsing in a chlorine bath with
brushing using bristle rollers, (3) rinsing with a hot water shower
with brushing using bristle rollers, (4) pre-drying at room
temperature, (5) waxing, and (6) drying with hot air. Three specific
studies conducted by the Fundacion para el Desarrollo Frut[iacute]cola
and the Universidad Catolica de Valparaiso, Chile (Catholic University
of Valparaiso, Chile) found these post-harvest processing procedures to
be 79.9 percent to 89.7 percent effective in removing B. chilensis
mites as a stand-alone mitigation measure.\3\
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\3\ See Annexes 4, 5, and 6 of the risk management document.
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Phytosanitary Inspection
As the final stage in the systems approach, once the fruit has been
processed, each consignment, which would consist of one or more lots,
of fruit intended for export to the United States would be subject to a
phytosanitary inspection to verify the absence of B. chilensis and any
visibly detectable pests, including Proeulia spp. Phytosanitary
inspection would be conducted at an APHIS-approved inspection site in
Chile under the direction of APHIS in conjunction with the NPPO of
Chile.
Clementines, mandarins, and tangerines presented for preclearance
inspection in Chile would be required to be identified in shipping
documents accompanying each lot of fruit that identify the packing shed
where they were processed and the production sites where they were
produced; we would require that this identity be maintained until the
clementines, mandarins, and tangerines were released for entry into the
United States.
A biometric sample of the boxes would be selected and the fruit
from these boxes would be visually inspected for quarantine pests. A
portion of the fruit would be washed and the collected filtrate would
be microscopically examined for B. chilensis.
If one live B. chilensis mite were found during phytosanitary
inspection, the entire consignment would have to be fumigated with
methyl bromide in order for the fruit to be eligible for export to the
United States. In addition, the production site of origin would be
suspended from the low prevalence certification program for the
remainder of the harvest season. During the term of its suspension, the
production site could export fruit to the United States only if the
fruit were fumigated with methyl bromide, as outlined in the following
section. A suspended production site would have the opportunity to
reenter the low prevalence certification program prior to the next
harvest season. As noted previously, all production sites would have to
requalify for the program each year, regardless of their status at the
end of the preceding season.
If, during preclearance inspection in Chile, inspectors were to
find evidence of any other plant pest for which an authorized treatment
in the PPQ Treatment Manual is available, fruit in the consignment
would remain eligible for export to the United States if the entire
consignment were treated for the pest in Chile under APHIS supervision.
However, if a quarantine pest were found for which no treatment
authorized in the PPQ Treatment Manual is available, the entire
consignment would not be eligible for export to the United States.
Chilean inspectors would issue a phytosanitary certificate if no
evidence of pests was found. The phytosanitary certificate would have
to contain an additional declaration stating that the fruit in the
consignment meets the conditions of Sec. 319.56-2ll(d). Clementines,
mandarins, or tangerines inspected in Chile would, like all imported
fruits and vegetables, be subject to reinspection at the U.S. port of
arrival as provided in Sec. 319.56-6 of the regulations.
Fumigation
Not all exporters may be able to utilize the systems approach as a
means for access to the U.S. market. As an alternative mitigation
measure, we are proposing to provide for the use of an approved APHIS
treatment for B. chilensis for clementines, mandarins, and tangerines
from Chile.
The treatment would be fumigation with methyl bromide at normal
atmospheric pressure in an APHIS-approved fumigation chamber or under a
tarpaulin in accordance with the following schedule, which is listed in
the PPQ Treatment Manual as T-104-a-1. This treatment schedule is
approved for spider mites, which is the group encompassing B.
chilensis. The treatment schedule requires that tangerines (Citrus
reticulata, which encompasses clementines, mandarins, and tangerines)
must be warmed to a minimum of 50 [deg]F before treatment. The required
treatment period is 2 hours.
------------------------------------------------------------------------
Dosage-
pounds of
methyl
Temperature ([deg]F) bromide
per 1,000
ft \3\
------------------------------------------------------------------------
80 or above................................................ 1\1/2\
70-79 (inclusive).......................................... 2
60-69 (inclusive).......................................... 2\1/2\
50-59 (inclusive).......................................... 3
------------------------------------------------------------------------
APHIS inspectors would monitor the fumigation and prescribe such
safeguards as might be necessary for unloading, handling, and
transportation preparatory to fumigation. The final release of the
commodities for entry into the United States would be conditioned upon
compliance with prescribed safeguards and required treatment. Shipments
of clementines, mandarins, and tangerines from Chile that had been
fumigated would be subject to random inspection in Chile, as well as at
the port of arrival in accordance with Sec. 319.56-6.
Trust Fund Agreement
Section 319.56-2z(c) of the regulations sets forth the requirement
for a trust fund agreement for the importation of cherimoyas from Chile
into the United States. We are proposing to require a similar trust
fund agreement for the importation of clementines, mandarins, and
tangerines from Chile. This agreement would require the NPPO of Chile
to pay in advance of each shipping season all costs that APHIS
estimates it would incur in providing inspection services and treatment
monitoring in Chile during that shipping season. These costs would
include administrative expenses and all other salaries (including
overtime and the Federal share of employee benefits), travel expenses
(including per diem expenses), and other incidental expenses incurred
by the inspectors in performing these services. The agreement would
require the NPPO of Chile to deposit a certified or cashier's check
with APHIS for the amount of these costs, as estimated by APHIS. If the
deposit is not sufficient to meet all costs incurred by APHIS, the
agreement would require the NPPO of Chile to deposit a certified or
cashier's check
[[Page 13265]]
with APHIS for the amount of the remaining costs, as determined by
APHIS, before APHIS would provide any more services related to the
inspection and treatment of clementines, mandarins, or tangerines in
Chile. After a final audit at the conclusion of each shipping season,
any overpayment of funds would be returned to the NPPO of Chile or held
on account until needed, at their option.
Requiring the payment of costs in advance is necessary to help
defray the costs to APHIS of providing inspection and treatment
monitoring services in Chile.
Executive Order 12866 and Regulatory Flexibility Act
This proposed rule has been reviewed under Executive Order 12866.
The rule has been determined to be significant for the purposes of
Executive Order 12866 and, therefore, has been reviewed by the Office
of Management and Budget.
For this proposed rule, we have prepared an economic analysis. The
economic analysis provides a cost-benefit analysis as required by
Executive Order 12866, as well as an analysis of the potential economic
effects of this proposed rule on small entities, as required under 5
U.S.C. 603. The economic analysis is summarized below. See the full
analysis for the complete list of references used in this document.
Copies of the full analysis are available on the APHIS Web site at
http://www.aphis.usda.gov/ppd/rad/clementinesecon.pdf or by contacting
the person listed under FOR FURTHER INFORMATION CONTACT. Copies of the
economic analysis are also available for viewing in our reading room.
(Information on the location and hours of the reading room is provided
under the heading ADDRESSES at the beginning of this document).
Under the Plant Protection Act (7 U.S.C. 7701-7772), the Secretary
of Agriculture is authorized to regulate the importation of plants,
plant products, and other articles to prevent the introduction into, or
dissemination within, the United States of a plant pest or noxious
weed.
Summary of Economic Analysis
Our analysis estimates expected benefits and costs associated with
allowing the importation of clementines, mandarins, and tangerines from
Chile into the United States. The analysis assumes that the regulations
will not lead to an increased risk of pest outbreaks in the United
States. Currently, no clementines, mandarins, or tangerines are being
imported into the United States from Chile. According to the Chilean
Exporters' Association, 1,300 hectares are planted with clementines,
mandarins, and tangerines in Chile, and Chile would like to export
approximately 1,600 metric tons of clementines, mandarins, and
tangerines to the United States. This amount is a little more than 15
percent of Chile's total exports of these commodities in 2001 (table
1).
Table 1.--World Exports of Clementines, Mandarins, and Citrus Hybrids
From Chile
------------------------------------------------------------------------
Value Quantity
Year (1,000 $) (1,000 kg)
------------------------------------------------------------------------
1993.......................................... 4.29 3
1994.......................................... 61.78 81
1995.......................................... 636.64 780
1996.......................................... 1,408.64 1,951
1997.......................................... 1,675.17 1,579
1998.......................................... 4,177.41 4,918
1999.......................................... 4,063.65 4,819
2000.......................................... 4,743.93 6,896
2001.......................................... 7,441.46 10,398
------------------------------------------------------------------------
Source: The U.S. Department of Agriculture's (USDA's) Foreign
Agricultural Service, as reported by U.N. Trade Statistics. Values are
in 2002 dollars and were deflated using the Consumer Price Index (All
Urban Consumers) for fresh fruits, not seasonally adjusted, as
reported by the U.S. Department of Labor's Bureau of Labor Statistics.
Clementines and mandarins are not produced in the United States in
commercially significant quantities. Tangerines are produced
domestically. Most imports from Chile are expected to be clementines,
not tangerines. An earlier economic analysis by APHIS examined the
relationship between imports of Spanish clementines and domestically
produced tangerines but did not find evidence of substitution. That
analysis did not look at the relationship between Spanish clementines
and other citrus. However, U.S. producers of other kinds of citrus--
especially California navel oranges--have expressed concerns that
imports of Spanish clementines have taken market share and depressed
prices for navel oranges, reflecting that the imports are marketed in
the United States during the same season as navels.
An increase in supply of clementines could potentially increase
competition in the United States for domestically produced citrus, such
as oranges and tangerines. If imports from Chile increase, U.S.
producer prices could decline during the time when a larger supply is
on the market. However, Chilean clementines are expected to enter the
United States primarily between April and September, which is the off-
season for tangerines. Most of the fresh early tangerines from Florida,
which is the largest producer of tangerines, are shipped from October
to January, while most of the fresh Honey tangerines are shipped from
February to May (Brown 2000).\4\ California navel oranges are marketed
primarily from November to May, while California Valencia oranges are
primarily marketed from April to October.
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\4\ Florida is the largest producer of tangerines, accounting
for 68 percent of total domestic production annually, followed by
California (26 percent), and Arizona (6 percent).
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Table 2 shows the monthly orange shipments for fresh uses of three
major citrus producing States. Oranges include Valencia, navel, and
early/midseason varieties. Domestic orange shipments between April and
September comprise about 25 percent of total shipments annually.
Although the data represent only a proportion of the production
dedicated for fresh utilization, they provide an indication of the
domestic orange marketing seasons for comparative purposes. The April-
September marketing period for Chilean clementines matches the
California and Florida Valencia marketing seasons, so the clementines
could displace some fresh market Valencia orange sales. However, the
expected amount of 1,600 metric tons represents a small share (less
than 2 percent) of the domestic shipment between April and September
(99,712 metric tons). The competition with various summer fruits is
likely to have a far greater impact. Given the small number of expected
imports from Chile and the different marketing seasons, any potential
impacts on U.S. citrus producers would be minimal.
[[Page 13266]]
Table 2.--Monthly Orange Shipments for Fresh Utilization, Average 2000-2002
----------------------------------------------------------------------------------------------------------------
Average shipments by State (metric tons)
Month ------------------------------------------------ Total
California Florida Texas
----------------------------------------------------------------------------------------------------------------
January......................................... 7,818 25,106 8,818 41,742
February........................................ 7,076 19,182 7,652 33,910
March........................................... 9,394 18,742 5,333 33,470
April........................................... 8,091 20,545 2,485 31,121
May............................................. 8,394 19,030 1,182 28,606
June............................................ 7,136 13,242 0 20,379
July............................................ 5,409 545 0 5,955
August.......................................... 5,652 45 0 5,697
September....................................... 4,773 2,652 530 7,955
October......................................... 4,242 23,848 5,015 33,106
November........................................ 5,288 37,348 5,576 48,212
December........................................ 7,561 53,500 8,848 69,909
----------------------------------------------------------------------------------------------------------------
Note: Orange shipment data for California and Arizona include only rail and piggyback (trailer-on-flat-car and
container-on-flat-car). Truck shipment data are not available. Average California orange shipments for 2000-
2002 represent about 5 percent of California's production for fresh utilization over the same time period.
Arizona data are excluded (available shipment data were small in 2000-2001 and was zero in 2002). Average
Florida and Texas shipments for 2000-2002 represent about 60 percent and 93 percent, respectively, of fresh
production for those States. Source: USDA/AMS Fruits and Vegetable Market News.
Most U.S. imports of clementines, mandarins, and tangerines (table
3) currently come from Spain, which ships the commodities from mid-
September to mid-March. Chile would export these commodities to the
United States between April and September each year. These imports
would increase the availability of these fruits during the Spanish off-
season, which would lead to benefits for U.S. importers and consumers.
Table 3.--U.S. World Imports of Clementines, Mandarins, and Citrus
Hybrids
------------------------------------------------------------------------
Value Quantity
Year (1,000 $) (1,000 kg)
------------------------------------------------------------------------
1991.......................................... 23,306 19,480
1992.......................................... 26,219 18,112
1993.......................................... 27,019 17,519
1994.......................................... 30,404 20,850
1995.......................................... 26,010 19,062
1996.......................................... 39,976 27,404
1997.......................................... 63,279 42,110
1998.......................................... 60,356 43,168
1999.......................................... 128,104 90,454
2000.......................................... 113,953 96,296
2001.......................................... 131,711 75,365
------------------------------------------------------------------------
Source: Import data are from the USDA's Foreign Agricultural Service, as
reported by U.N. Trade Statistics. Values are in 2002 dollars and were
deflated using the Consumer Price Index (All Urban Consumers) for
fresh fruits, not seasonally adjusted, as reported by the U.S.
Department of Labor's Bureau of Labor Statistics.
To capture the impact on U.S. importers, an inverse demand curve
characterizing the U.S. demand for imported clementines, tangerines,
and mandarin oranges was estimated. The demand for the imported
commodities can be related to the export prices and quantities for
Spanish fruits exported to all markets except the United States.
Spanish export data were used because over 83 percent of U.S. imports
of these fruits was from Spain during 1997-2001. Data on imports for
1991-2001 were used to analyze the expected impacts for the 10-year
period (2004-2013) subsequent to the entry of the imports from Chile.
Imports from Chile were assumed to grow 13.55 percent each year,
which was the average annual growth during 1999-2001 in Chile's exports
to Japan, its best export market, and that imports for 2004 will be
1,595 metric tons (table 4). It was assumed that U.S. imports from
sources other than Chile will grow 6.46 percent per year, which was the
import growth during 1999-2000, starting from an estimate of 87,372
metric tons imported for 2002, which was the average import quantity
during 1999-2001 (table 3).
Table 4.--Estimated U.S. Imports of Clementine, Mandarin, and Tangerine
With and Without Chile
------------------------------------------------------------------------
Clementine, mandarin,
and tangerine imports
(1,000 kg)
Year -------------------------
Without
Chile With Chile
------------------------------------------------------------------------
2004.......................................... 99,020 100,620
2005.......................................... 105,420 107,230
2006.......................................... 112,230 114,280
2007.......................................... 119,470 121,810
2008.......................................... 127,190 129,840
2009.......................................... 135,400 138,420
2010.......................................... 144,150 147,570
2011.......................................... 153,460 157,340
2012.......................................... 163,370 167,780
2013.......................................... 173,920 178,930
------------------------------------------------------------------------
Estimated regulatory benefits for U.S. importers were given by the
area under the inverse import demand curve above estimated price with
Chilean imports minus the area under the import demand curve above
estimated price without Chilean imports. This method provided annual
estimates of gross revenue increases received by U.S. importers.
Expected future gross revenues (table 5) were discounted using a 5.34
percent annual interest rate, which was estimated using annual income
and rate of return data for U.S. farmers during 1966-1994.\5\ The
annualized increase in gross revenues received by U.S. importers of
clementines, mandarins, and tangerines under the regulations was an
estimated $0.59 million per year during 2004-2013. This suggests that
the regulation will yield economic benefits to U.S. importers during
the period in which it remains in force. Consumers also benefit from
the greater availability of clementines during the off-season for
domestic production and other imports.
[[Page 13267]]
The proposed rule will result in net benefits to society given that the
new imports are not expected to significantly compete with domestic
citrus production and will not lead to pest introductions.
---------------------------------------------------------------------------
\5\ Lence, S.H. ``Using Consumption and Asset Return Data to
Estimate Farmers' Time Preferences and Risk Attitudes.'' American
Journal of Agricultural Economics. 82(2000): 934-947.
Table 5.--Impact on Gross Revenues of U.S. Importers
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Year With Chile Without Chile Gains
----------------------------------------------------------------------------------------------------------------
2004............................................................ $7.48 $7.24 $0.24
2005............................................................ 8.50 8.21 0.28
2006............................................................ 9.65 9.31 0.34
2007............................................................ 10.96 10.55 0.42
2008............................................................ 12.46 11.95 0.50
2009............................................................ 14.16 13.55 0.61
2010............................................................ 16.09 15.35 0.74
2011............................................................ 18.29 17.40 0.89
2012............................................................ 20.80 19.72 1.08
2013............................................................ 23.66 22.35 1.31
Annualized discounted sum of gross revenues..................... 13.46 12.86 0.59
----------------------------------------------------------------------------------------------------------------
Regulatory Impacts on Small Entities
According to the 1997 Census of Agriculture, there were 17,000
citrus producers (excluding grapefruit, lemon, and lime producers) in
the United States. The U.S. Small Business Administration defines a
small citrus producer as one with annual gross revenues no greater than
$0.75 million. The USDA's National Agricultural Statistics Service
reported that 3.8 percent of U.S. fruit and tree nut producers
accounted for 95.1 percent of sales in 1982, 4.2 percent of fruit and
tree nut producers accounted for 96.2 percent of sales in 1987, and 4.6
percent of fruit and tree nut producers accounted for 96.7 percent of
sales in 1992. These data indicate that the majority of U.S. citrus
producers are small entities. Our economic analysis suggests that
Chilean imports will not significantly compete with domestic citrus
production such as tangerines and navel oranges because the imports
will be shipped largely during the off-season for U.S. production of
these fruits. Although the Chilean imports are expected to overlap with
some domestic orange shipments such as Valencia oranges, the amount to
be imported is expected to be a small percentage of the total U.S.
orange shipments during the importing months. As a result, the
importation of clementines, mandarins, and tangerines from Chile would
likely have minimal adverse impact on domestic citrus producers, large
or small.
Importers of clementines, mandarins, and tangerines would likely
benefit under the proposed regulations. The number of importers that
can be classified as small is not known. However, the proposed
regulations would not lead to adverse economic impact on small entities
in these industries (fresh fruit and vegetable wholesalers with no more
than 100 employees, NAICS 422480; wholesalers and other grocery stores
with annual gross revenues no greater than $23 million, NAICS 445110;
warehouse clubs and superstores with annual gross revenues no greater
than $23 million, NAICS 452910; and fruit and vegetable markets with
gross revenues no greater than $6 million, NAICS 445230).
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 would allow clementines, mandarins, and
tangerines to be imported into the United States from Chile. If this
proposed rule is adopted, State and local laws and regulations
regarding clementines, mandarins, and tangerines imported under this
rule would be preempted while the fruit is in foreign commerce. Fresh
fruits and vegetables are generally imported for immediate distribution
and sale to the consuming public and would remain in foreign commerce
until sold to the ultimate consumer. The question of when foreign
commerce ceases in other cases must be addressed on a case-by-case
basis. If this proposed rule is adopted, no retroactive effect will be
given to this rule, and this rule will not require administrative
proceedings before parties may file suit in court challenging this
rule.
National Environmental Policy Act
An environmental assessment has been prepared for this proposed
rule. The assessment provides a basis for the conclusion that the
importation of clementines, mandarins, and tangerines under the
conditions specified in this proposed rule would not present a risk of
introducing or disseminating plant pests or diseases and would not have
a significant impact on the quality of the human environment.
The environmental assessment was prepared in accordance with: (1)
The National Environmental Policy Act of 1969 (NEPA), as amended (42
U.S.C. 4321 et seq.), (2) regulations of the Council on Environmental
Quality for implementing the procedural provisions of NEPA (40 CFR
parts 1500-1508), (3) USDA regulations implementing NEPA (7 CFR part
1b), and (4) APHIS' NEPA Implementing Procedures (7 CFR part 372).
The environmental assessment is available for viewing on the
Internet at http://www.aphis.usda.gov/ppd/es/ppqdocs.html. Copies of
the environmental assessment are also available for public inspection
in our reading room. (Information on the location and hours of the
reading room is provided under the heading ADDRESSES at the beginning
of this document). In addition, copies may be obtained by calling or
writing to the individual listed under FOR FURTHER INFORMATION CONTACT.
Paperwork Reduction Act
In accordance with section 3507(d) of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the information collection or
recordkeeping requirements included in this proposed rule have been
submitted for approval to the Office of Management and Budget (OMB).
Please send written comments to the Office of Information and
Regulatory Affairs, OMB, Attention: Desk Officer for APHIS, Washington,
DC 20503. Please state that your comments refer to Docket No. 02-081-2.
Please send a copy of your comments to: (1) Docket No. 02-081-2,
Regulatory Analysis and Development, PPD, APHIS, Station 3C71, 4700
River Road
[[Page 13268]]
Unit 118, Riverdale, MD 20737-1238, and (2) Clearance Officer, OCIO,
USDA, room 404-W, 14th Street and Independence Avenue SW., Washington,
DC 20250. A comment to OMB is best assured of having its full effect if
OMB receives it within 30 days of publication of this proposed rule.
This proposed rule would amend the regulations to allow the
importation of clementines, mandarins, and tangerines into the United
States from Chile, provided certain conditions were met. These proposed
changes would require, among other things, that production sites
participating in an export program from Chile to the United States
would have to register with the NPPO of Chile and be certified as low
prevalence production sites. Each consignment of clementines,
mandarins, and tangerines would be inspected by APHIS and the NPPO of
Chile, and a phytosanitary certificate would have to be issued before
the consignment could leave Chile. In addition, Chile would have to
enter into a trust fund agreement with the United States before
beginning any export program.
We are soliciting comments from the public (as well as affected
agencies) concerning our proposed information collection and
recordkeeping requirements. These comments will help us:
(1) Evaluate whether the proposed information collection is
necessary for the proper performance of our agency's functions,
including whether the information will have practical utility;
(2) Evaluate the accuracy of our estimate of the burden of the
proposed information collection, including the validity of the
methodology and assumptions used;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the information collection on those who
are to respond (such as through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology; e.g., permitting electronic
submissions of responses).
Estimate of burden: Public reporting burden for this collection of
information is estimated to average 0.0833 hours per response.
Respondents: Growers, shippers, and Chilean health officials.
Estimated annual number of respondents: 10.
Estimated annual number of responses per respondent: 12.
Estimated annual number of response: 120.
Estimated total annual burden on respondents: 10 hours. (Due to
averaging, the total annual burden hours may not equal the product of
the annual number of responses multiplied by the reporting burden per
response.)
Copies of this information collection can be obtained from Mrs.
Celeste Sickles, APHIS' Information Collection Coordinator, at (301)
734-7477.
Government Paperwork Elimination Act Compliance
The Animal and Plant Health Inspection Service is committed to
compliance with the Government Paperwork Elimination Act (GPEA), which
requires Government agencies in general to provide the public the
option of submitting information or transacting business electronically
to the maximum extent possible. For information pertinent to GPEA
compliance related to this proposed rule, please contact Mrs. Celeste
Sickles, APHIS' Information Collection Coordinator, at (301) 734-7477.
List of Subjects in 7 CFR Part 319
Bees, Coffee, Cotton, Fruits, Honey, Imports, Logs, Nursery stock,
Plant diseases and pests, Quarantine, Reporting and recordkeeping
requirements, Rice, Vegetables.
Accordingly, 7 CFR part 319 would be amended as follows:
PART 319--FOREIGN QUARANTINE NOTICES
1. The authority citation for part 319 would continue to read as
follows:
Authority: 7 U.S.C. 450 and 7701-7772; 21 U.S.C. 136 and 136a; 7
CFR 2.22, 2.80, and 371.3.
2. A new Sec. 319.56-2ll would be added to read as follows:
Sec. 319.56-2ll Conditions governing the importation of clementines,
mandarins, and tangerines from Chile.
Clementines (Citrus reticulata Blanco var. Clementine), mandarins
(Citrus reticulata Blanco), and tangerines (Citrus reticulata Blanco)
may be imported into the United States from Chile only under the
following conditions:
(a) The fruit must be accompanied by a specific written permit
issued in accordance with Sec. 319.56-3.
(b) If the fruit is produced in an area of Chile where
Mediterranean fruit fly (Ceratatis capitata) is known to occur, the
fruit must be cold treated in accordance with the Plant Protection and
Quarantine (PPQ) Treatment Manual, which is incorporated by reference
at Sec. 300.1 of this chapter. Fruit for which cold treatment is
required must be accompanied by documentation indicating that the cold
treatment was initiated in Chile (a PPQ Form 203 or its equivalent may
be used for this purpose).
(c) The fruit must either be produced and shipped under the systems
approach described in paragraph (d) of this section or fumigated in
accordance with paragraph (e) of this section.
(d) Systems approach. The fruit may be imported without fumigation
for Brevipalpus chilensis if it meets the following conditions:
(1) Production site registration. The production site where the
fruit is grown must be registered with the national plant protection
organization (NPPO) of Chile. To register, the production site must
provide Chile's NPPO with the following information: Production site
name, grower, municipality, province, region, area planted to each
species, number of plants/hectares/species, and approximate date of
harvest. Registration must be renewed annually.
(2) Low prevalence production site certification. Between 1 and 30
days prior to harvest, random samples of fruit must be collected from
each registered production site under the direction of Chile's NPPO.
These samples must undergo a pest detection and evaluation method as
follows: The fruit and pedicels must be washed using a flushing method,
placed in a 20 mesh sieve on top of a 200 mesh sieve, sprinkled with a
liquid soap and water solution, washed with water at high pressure, and
washed with water at low pressure. The process must then be repeated.
The contents of the sieves must then be placed on a Petri dish and
analyzed for the presence of live B. chilensis mites. If a single live
B. chilensis mite is found, the production site will not qualify for
certification as a low prevalence production site and will be eligible
to export fruit to the United States only if the fruit is fumigated in
accordance with paragraph (e) of this section. Each production site may
have only one opportunity per harvest season to qualify as a low
prevalence production site, and certification of low prevalence will be
valid for one harvest season only. The NPPO of Chile will present a
list of certified production sites to APHIS.
(3) Post-harvest processing. After harvest and before packing, the
fruit must be washed, rinsed in a chlorine bath, washed with detergent
with brushing using bristle rollers, rinsed with a hot water shower
with brushing using bristle rollers, predried at room temperature,
waxed, and dried with hot air.
[[Page 13269]]
(4) Phytosanitary inspection. The fruit must be inspected in Chile
at an APHIS-approved inspection site under the direction of APHIS
inspectors in coordination with the NPPO of Chile after the post-
harvest processing. A biometric sample will be drawn and examined from
each consignment of fruit, which may represent multiple grower lots
from different packing sheds. Clementines, mandarins, or tangerines in
any consignment may be shipped to the United States only if the
consignment passes inspection as follows:
(i) Fruit presented for inspection must be identified in the
shipping documents accompanying each lot of fruit that identify the
production site(s) where the fruit was produced and the packing shed(s)
where the fruit was processed. This identity must be maintained until
the fruit is released for entry into the United States.
(ii) A biometric sample of boxes from each consignment will be
selected and the fruit from these boxes will be visually inspected for
quarantine pests, and a portion of the fruit will be washed and the
collected filtrate will be microscopically examined for B. chilensis.
(A) If a single live B. chilensis mite is found, the fruit will be
eligible for importation into the United States only if it is fumigated
in accordance with paragraph (e) of this section. The production site
will be suspended from the low prevalence certification program and all
subsequent lots of fruit from the production site of origin will be
required to be fumigated as a condition of entry to the United States
for the remainder of the shipping season.
(B) If inspectors find evidence of any other quarantine pest, the
fruit in the consignment will remain eligible for importation into the
United States only if an authorized treatment for the pest is available
in the PPQ Treatment Manual and the entire consignment is treated for
the pest in Chile under APHIS supervision.
(iii) Each consignment of fruit must be accompanied by a
phytosanitary certificate issued by the NPPO of Chile that contains an
additional declaration stating that the fruit in the consignment meets
the conditions of Sec. 319.56-2ll(d).
(e) Approved fumigation. Clementines, mandarins, or tangerines that
do not meet the conditions of paragraph (d) of this section may be
imported into the United States if the fruit is fumigated with methyl
bromide for B. chilensis in Chile in accordance with the PPQ Treatment
Manual, which is incorporated by reference at Sec. 300.1 of this
chapter. An APHIS inspector will monitor the fumigation of the fruit
and will prescribe such safeguards as may be necessary for unloading,
handling, and transportation preparatory to fumigation. The fruit must
be inspected in Chile at an APHIS-approved inspection site under the
direction of APHIS inspectors in coordination with the NPPO of Chile
after the completion of treatment. The final release of the fruit for
entry into the United States will be conditioned upon compliance with
prescribed safeguards and required treatment.
(f) Trust fund agreement. Clementines, mandarins, and tangerines
may be imported into the United States under this section only if the
NPPO of Chile has entered into a trust fund agreement with APHIS. This
agreement requires the NPPO of Chile to pay in advance of each shipping
season all costs that APHIS estimates it will incur in providing
inspection and treatment monitoring services in Chile during that
shipping season. These costs include administrative expenses and all
salaries (including overtime and the Federal share of employee
benefits), travel expenses (including per diem expenses), and other
incidental expenses incurred by APHIS in performing these services. The
agreement requires the NPPO of Chile to deposit a certified or
cashier's check with APHIS for the amount of these costs, as estimated
by APHIS. If the deposit is not sufficient to meet all costs incurred
by APHIS, the agreement further requires the NPPO of Chile to deposit
with APHIS a certified or cashier's check for the amount of the
remaining costs, as determined by APHIS, before APHIS will provide any
more services related to the inspection and treatment of clementines,
mandarins, and tangerines in Chile. After a final audit at the
conclusions of each shipping season, any overpayment of funds would be
returned to the NPPO of Chile, or held on account until needed, at
their option.
Done in Washington, DC, this 16th day of March 2004.
Bill Hawks,
Under Secretary for Marketing and Regulatory Programs.
[FR Doc. 04-6325 Filed 3-19-04; 8:45 am]
BILLING CODE 3410-34-P