Importation of Fruits and Vegetables

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Parts 300 and 319

[Docket No. 93-121-3]

Importation of Fruits and Vegetables

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: We are allowing, under certain conditions, the cold treatment

of imported fruits upon arrival at the port of Wilmington, NC. We have

determined that in the Wilmington, NC, area, there are climatic and

biological barriers that are adequate to prevent the introduction of

certain plant pests into the United States in the event they escape

from shipments of fruit before undergoing cold treatment. Also, we are

deleting the listings of cold treatments in the regulations and

replacing them with a reference to the cold treatments in the Plant

Protection and Quarantine Treatment Manual, which is incorporated by

reference.

EFFECTIVE DATE: September 9, 1994.

FOR FURTHER INFORMATION CONTACT: Mr. Victor Harabin, Head, Permit Unit,

Port Operations, Plant Protection and Quarantine, APHIS, USDA, room

631, Federal Building, 6505 Belcrest Road, Hyattsville, MD 20782; (301)

436-8645.

SUPPLEMENTARY INFORMATION:

Background

The Fruits and Vegetables regulations, contained in 7 CFR 319.56

through 319.56-8 (referred to below as ``the regulations''), prohibit

or restrict the importation of fruits and vegetables to prevent the

introduction and dissemination of injurious insects, including fruit

flies, that are new to or not widely distributed in the United States.

The Animal and Plant Health Inspection Service (APHIS) of the U.S.

Department of Agriculture administers these regulations.

Under Sec. 319.56-2d of the regulations, APHIS allows certain

fruits to be imported into the United States if they undergo sustained

refrigeration (cold treatment) sufficient to kill certain insect pests.

Cold treatment temperature and refrigeration period requirements vary

according to the type of fruit and the pests involved.

On May 13, 1994, we published in the Federal Register (59 FR 24968-

24971, Docket No. 93-121-2) a proposal to amend the regulations to

allow the cold treatment of imported fruits upon arrival at the port of

Wilmington, NC. We also proposed to delete the listings of cold

treatments in the regulations and replace them with a reference to the

cold treatments in the Plant Protection and Quarantine Treatment

Manual, which is incorporated by reference. We also proposed to make a

nonsubstantive editorial change.

We solicited comments concerning our proposal for a 30-day comment

period ending June 13, 1994. We received two comments by that date.

One, from a State agency, supports the rule. The other comment, from a

port authority, asked that we continue to consider allowing cold

treatment to be conducted at Gulfport, MS. We are still considering

whether to allow cold treatment to be conducted at Gulfport. Therefore,

based on the rationale set forth in the proposed rule and in this

document, we are adopting the provisions of the proposal as a final

rule without change.

Executive Order 12866 and Regulatory Flexibility Act

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

has been determined to be not significant for purposes of Executive

Order 12866, and, therefore, has not been reviewed by the Office of

Management and Budget.

We are allowing, under certain conditions, the cold treatment of

imported fruit upon arrival at the port of Wilmington, NC. As a result

of this action, a number of different fruits could be imported into

Wilmington, NC. Specifically, officials of the North Carolina State

Ports Authority in Wilmington, NC, anticipate that apples, grapes, and

pears from Argentina, Brazil, and South Africa will be imported and

cold treated at the port of Wilmington, NC.

Approximately 20 million pounds of each fruit could be imported

annually into Wilmington, NC, as a result of this action, though we

anticipate the amount will be much smaller. While some of the fruit

arriving at Wilmington, NC, will be imported in addition to the present

volume of annual imports into the United States, some will be shipments

diverted from other ports also approved to conduct cold treatment on

arrival. In the following analysis of the potential impact of this

action on domestic producers of apples, grapes and pears, in order to

demonstrate the greatest possible economic impact, we have assumed that

the maximum amount of fruit will be imported into Wilmington, NC, for

cold treatment, and further, that those commodities will be imported in

addition to the present volume of annual imports into the United

States.

Also in the following analysis, we have used published price

flexibilities to estimate the potential economic effects of allowing

apples, grapes, and pears to be cold treated at Wilmington, NC;

flexibilities are used to estimate relationships between changes in

supply and subsequent changes in price.

Apples

In 1987, 36,718 farms in the United States, of which 1,186 were in

North Carolina, harvested apples. Although it is not known how many of

these farms could be classified as small entities (annual gross

receipts of $0.5 million or less, according to Small Business

Administration (SBA) size standards), it is likely that most would. In

1992, domestic farms produced almost 5.78 billion pounds of apples for

the fresh market, with an estimated value of $1.13 billion.

If the volume of apples imported into Wilmington, NC, for cold

treatment were to reach 20 million pounds, it would constitute about

7.5 percent of current total imports into the United States, about 0.35

percent of current domestic production and about 0.33 percent of the

current total apple supply in the United States (domestic and imports).

Assuming that a 0.33 percent increase in the supply of apples would

lead to a decrease of about 0.20 percent in the domestic price of

apples (using a price flexibility for apples of -0.590, based on all

Eastern States' sales of North Carolina apples), we estimate that this

increase in supply would result in a price decrease of about $0.038 per

hundredweight (cwt), or $0.00038 per pound, from an original price of

$0.195 per pound. As a result of the price decrease, there could be a

decrease in total revenue to U.S. apple producers of about $2.20

million, which is roughly 0.20 percent of the original total revenue of

$1.13 billion. We anticipate, therefore, that allowing apples to be

cold treated at Wilmington, NC, will not have a significant economic

impact on domestic producers or other small entities.

Grapes

In 1987, 23,236 farms in the United States, of which 286 were in

North Carolina, harvested apples. In 1992 domestic farms produced about

1.54 billion pounds of grapes for the fresh market, with an estimated

value of $327 million. Although it is not known how many of these farms

could be classified as small entities (annual gross receipts of $0.5

million or less, according to SBA size standards), it is likely that

most would.

If the volume of grapes to be imported were to reach 20 million

pounds, it would constitute about 2.9 percent of current total imports

to the United States, about 1.3 percent of current domestic production

and about 0.89 percent of the current total grape supply in the United

States (domestic and imports).

Assuming that a 0.89 percent increase in the supply of grapes would

lead to a decrease of about 0.88 percent in the domestic price of

grapes (using a price flexibility for California grapes of -0.981), we

estimate that this increase in supply would result in a price decrease

of about $3.73 per ton, or $0.0019 per pound, from an original price of

$425.62 per ton. As a result of the price decrease, there could be a

decrease in total revenue to U.S. grape producers of about $2.9

million, which is roughly 0.88 percent of the original total revenue of

$327 million. We anticipate, therefore, that allowing grapes to be cold

treated at Wilmington, NC, will not have a significant economic impact

on domestic producers or other small entities.

Pears

In 1987, 10,092 farms in the United States, 88 of which were in

North Carolina, harvested pears. In 1992, domestic farms produced about

890 million pounds of pears for the fresh market, with an estimated

value of $168 million. Although it is not known how many of these farms

could be classified as small entities (annual gross receipts of $0.5

million or less, according to SBA size standards), it is likely that

most would.

If the volume of pears to be imported were to reach 20 million

pounds, it would constitute about 15.4 percent of current total imports

to the United States, about 2.2 percent of current domestic production

and about 2.0 percent of the current total pear supply in the United

States (domestic and imports).

Assuming that a 2.0 percent increase in the supply of pears would

lead to a decrease of about 1.2 percent in the domestic price of pears

(using a price flexibility for California pears of -0.609), we estimate

that this increase in supply would result in a price decrease of about

$4.51 per ton, or $0.0023 per pound, from an original price of $377.61

per ton. As a result of the price decrease, there could be a decrease

in total revenue to U.S. pear producers of about $2.0 million, which is

roughly 1.19 percent of the original total revenue of $168 million. We

anticipate, therefore, that allowing pears to be cold treated at

Wilmington, NC, will not have a significant economic impact on domestic

producers or other small entities.

Therefore, in light of the preceding analyses (which estimate

greatest possible, and thus highly unlikely, economic effects), as well

as our expectation that most imports of fruit to Wilmington, NC, for

cold treatment will occur during the off-season for domestic

production, we anticipate that this action will not have a significant

economic impact on domestic producers of apples, grapes, and pears, or

other small entities.

Furthermore, we anticipate that allowing cold treatment at the port

of Wilmington, NC, could have beneficial economic effects. Importers

who routinely transport fruit to the Southeastern United States could

benefit from this action due to lower transportation costs. Freight

companies and shipping companies in North Carolina, as well as the

local economy, might also benefit. Also, consumers are likely to gain

from the increased selection of products and any price decreases,

albeit small, that occur with increases in supply.

Under these circumstances, the Administrator of the Animal and

Plant Health Inspection Service has determined that this action will

not have a significant economic impact on a substantial number of small

entities.

Executive Order 12778

This final rule allows cold treatment of certain fruits to be

conducted at the port of Wilmington, NC. State and local laws and

regulations regarding the importation of fruits under this rule will be

preempted while the fruits are in foreign commerce. Fresh fruits are

generally imported for immediate distribution and sale to the consuming

public, and will 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. 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.

Paperwork Reduction Act

This final rule contains no information collection or recordkeeping

requirements under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501

et seq.).

List of Subjects

7 CFR Part 300

Incorporation by reference, Plant diseases and pests, Quarantine.

7 CFR Part 319

Bees, Coffee, Cotton, Fruits, Honey, Imports, Incorporation by

reference, Nursery Stock, Plant diseases and pests, Quarantine,

Reporting and recordkeeping requirements, Rice, Vegetables.

Accordingly, title 7, chapter III, of the Code of Federal

Regulations is amended as follows:

PART 300--INCORPORATION BY REFERENCE

1. The authority citation for part 300 is revised to read as

follows:

Authority: 7 U.S.C. 150ee, 154, 161, 162, 167; 7 CFR 2.17, 2.51,

and 371.2(c).

2. In Sec. 300.1, paragraph (a) is revised to read as follows:

Sec. 300.1 Materials incorporated by reference.

(a) The Plant Protection and Quarantine Treatment Manual, which was

revised and reprinted November 30, 1992, and includes all revisions

through July 1994, has been approved for incorporation by reference in

7 CFR chapter III by the Director of the Office of the Federal Register

in accordance with 5 U.S.C. 552(a) and 1 CFR part 51.

* * * * *

PART 319--FOREIGN QUARANTINE NOTICES

3. The authority citation for part 319 continues to read as

follows:

Authority: 7 U.S.C. 150dd, 150ee, 150ff, 151-167, 450; 21 U.S.C.

136 and 136a; 7 CFR 2.17, 2.51, and 371.2(c).

4. In Sec. 319.56-2d, paragraph (a) is revised to read as follows:

Sec. 319.56-2d Administrative instructions for cold treatments of

certain imported fruits.

(a) Treatments authorized. Fresh fruits imported in accordance with

this subpart and required under this subpart to receive cold treatment

as a condition of entry 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. The cold

treatments listed in the PPQ Treatment Manual are authorized for any

fruit required to be cold treated under this subpart.

* * * * *

Sec. 319.56-2d [Amended]

5. In Sec. 319.56-2d, paragraph (b)(1), the second sentence is

amended by removing the phrase ``port of New York or such other

northern ports as he may hereafter designate'' and adding in its place

the phrase ``following ports: the port of Wilmington, NC; Atlantic

ports north of, and including, Baltimore, MD; ports on the Great Lakes

and St. Lawrence Seaway; Canadian border ports on the North Dakota

border and east of North Dakota; and, for air shipments, Washington,

DC, at Baltimore-Washington International and Dulles International

airports''.

6. In Sec. 319.56-2d, headings are added at the beginning of

paragraphs (b)(5)(i) through (b)(5)(iii), and a new paragraph

(b)(5)(iv) is added to read as follows:

Sec. 319.56-2d Administrative instructions for cold treatments of

certain imported fruits.

* * * *

(b) * * *

(5) Cold treatment after arrival. (i) Delivery.* * *

(ii) Precooling and refrigeration.* * *

(iii) Customs.* * *

(iv) Special requirements for the port of Wilmington, NC. Shipments

of fruit arriving at the port of Wilmington, NC, for cold treatment, in

addition to meeting all of the requirements in paragraphs (b)(5)(i)

through (b)(5)(iii) of this section, must meet the following special

conditions:

(A) Bulk shipments (those shipments which are stowed and unloaded

by the case or bin) of fruit must arrive packaged in fly-proof

packaging that prevents the escape of adult, larval, or pupal fruit

flies.

(B) Bulk and containerized shipments of fruits and vegetables must

be cold-treated within the port of Wilmington, NC, that is, the area

over which the Bureau of Customs is assigned the authority to accept

entries of merchandise, to collect duties, and to enforce the various

provisions of the customs and navigation laws in force.

(C) Advance reservations for cold treatment space at the port of

Wilmington, NC, must be made prior to the departure of a shipment from

its port of origin.

* * * * *

Sec. 319.56-2u [Removed and Reserved]

7. Section 319.56-2u is removed and reserved.

Sec. 319.56-2v [Amended]

8. In Sec. 319.56-2v, paragraph (b), the third sentence is amended

by removing the phrase ``North Atlantic ports north of and including

Baltimore, MD'' and adding in its place the phrase ``ports listed in

Sec. 319.56-2d(b)(1) of this subpart''.

9. Section 319.56-2x is amended as follows:

a. In paragraph (a), the table is amended for the Israel entry by

adding, in alphabetical order, a new commodity to read as set forth

below.

b. In paragraph (b), the first sentence is amended by adding the

phrase ``or the port of Wilmington, NC,'' immediately before the word

``if''.

Sec. 319.56-2x Administrative instructions: conditions governing the

entry of certain fruits and vegetables for which treatment is required.

(a) * * *

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Country/locality Common name Botanical name Plant part(s)

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* * * * *

Israel

* * * * *

Pummelo.......... Citrus grandis.. Fruit

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Done in Washington, DC, this 2nd day of August 1994.

Lonnie J. King,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 94-19511 Filed 8-9-94; 8:45 am]

BILLING CODE 3410-34-P