Importation of Fuji Variety Apples From Japan and the Republic of Korea

SUMMARY: We are amending the Fruits and Vegetables regulations to allow

the importation of Fuji variety apples from Japan and the Republic of

Korea. As a condition of entry, the Fuji variety apples have to be cold

treated and fumigated for certain injurious insects in Japan or the

Republic of Korea under the supervision of the Animal and Plant Health

Inspection Service. The Fuji variety apples also have to be inspected

by the Animal and Plant Health Inspection Service and the national

plant protection agency in Japan or the Republic of Korea prior to

export. This action relieves restrictions on the importation into the

United States of Fuji variety apples from Japan and the Republic of

Korea without presenting a significant risk of introducing injurious

insects into the United States.

EFFECTIVE DATE: August 17, 1994.

FOR FURTHER INFORMATION CONTACT: Mr. Peter M. Grosser or Mr. Frank E.

Cooper, Senior Operations Officers, Port Operations, Plant Protection

and Quarantine, APHIS, USDA, room 632, Federal Building, 6505 Belcrest

Road, Hyattsville, MD 20782, (301) 436-6799.

SUPPLEMENTARY INFORMATION:

Background

The regulations in 7 CFR 319.56 through 319.56-8 (referred to below

as the regulations) prohibit or restrict the importation into the

United States of fruits and vegetables from certain parts of the world

to prevent the introduction and dissemination of injurious insects that

are new to or not widely distributed within and throughout the United

States.

On June 8, 1994, we published in the Federal Register (59 FR 29557-

29559, Docket No. 94-035-1) a document in which we proposed to amend

the regulations to allow Fuji variety apples from Japan and the

Republic of Korea to be imported into the United States under certain

conditions. The importation of Fuji variety apples from Japan and the

Republic of Korea has been prohibited because of the risk that they

could introduce injurious insects into the United States. We proposed

to allow importation at the request of those countries' ministries of

agriculture and after determining that the apples could be imported

under certain conditions without significant pest risk.

We solicited comments on the proposed rule for a 30-day period

ending on July 8, 1994. We received two comments by that date. In one,

a foreign ministry of agriculture supported the proposal.

In the other, a State department of agriculture expressed concerns

regarding the possible spread into the United States of three fungal

diseases (Diplocarpon mali, Monilinia mali, and Alternaria mali) known

to affect apples in Japan and the Pacific rim. Two of the diseases are

exotic to the United States and the other is known to occur only in the

Southeastern United States. The commenter recommends that we conduct

pest risk assessments for the three diseases in order to determine if

mitigation measures are necessary.

Prior to proposing to allow Fuji variety apples to be imported from

Japan and the Republic of Korea, we assessed the risk of exotic pests

being introduced into the United States on the apples. Based on this

assessment, we believe that the risk of the three fungal diseases

spreading into the United States will be mitigated by numerous factors.

For instance, these three fungal diseases are primarily leaf pathogens

and seldom infect fruit, unless inoculum pressures are high.

Furthermore, the routine cultural practices for Fuji variety apple

production in Japan and the Republic of Korea, such as orchard

sanitation and the bagging of fruit, effectively suppress outbreaks of

these diseases. Finally, we believe that the required inspections of

the fruit following treatment in Japan or the Republic of Korea will

allow us to easily identify fruit infected with any of the three fungal

diseases and prevent its entry into the United States.

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.

Effective Date

This is a substantive rule that relieves restrictions and, pursuant

to the provisions of 5 U.S.C. 553, may be made effective less than 30

days after publication in the Federal Register. Immediate

implementation of this rule is necessary to provide relief to those

persons who are adversely affected by restrictions we no longer find

warranted. Making this rule effective immediately will allow interested

producers and others in the marketing chain to benefit from this

additional source of fruit. Therefore, the Administrator of the Animal

and Plant Health Inspection Service has determined that this rule

should be effective upon publication in the Federal Register.

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 amending the Fruits and Vegetables regulations by allowing

the importation of Fuji variety apples from Japan and the Republic of

Korea.

According to an estimate by the International Apple Institute, U.S.

growers produced approximately 160 million pounds of Fuji apples in

1993, about 1.5 percent of the total U.S. apple production for that

year. It is likely that this estimate understates the amount of Fuji

apples produced domestically, as Fuji acreage in California,

Washington, and other States is expanding rapidly.

About 75 percent of the Fuji variety apples grown in the United

States are grown in California and Washington. In 1993, growers in

California and Washington produced about 60 million pounds per State,

while growers in other States produced a total of about 40 million

pounds. Statistics on the number of domestic growers of Fuji apples and

their sizes are not available.

Most of the domestic production of Fuji apples is exported because

demand, and consequently the price, for Fuji apples is quite low in the

United States as compared to other countries, particularly in the

Pacific Rim. Prices of $30 to $50 per 40-pound box (depending upon

quality) are common in Hong Kong, Taiwan, and other Pacific Rim

markets. Domestic buyers, however, have been paying less than half that

price.

Growers in the Republic of Korea produce annually about 923 million

pounds of Fuji variety apples. APHIS estimates that about 220,000 to

440,000 pounds of Fuji variety apples might be exported per year from

the Republic of Korea to the United States. This estimate assumes the

Republic of Korea's exports to the United States will approach levels

currently exported to European countries.

Japanese growers produce annually about 1.18 billion pounds of Fuji

variety apples, just over half of Japan's total annual apple

production. APHIS estimates that exports to the United States of all

varieties of Japanese apples would probably never exceed 2.2 million

pounds.

It is unlikely that imports of Fuji variety apples from Japan and

the Republic of Korea will reach the estimated levels above, due to the

low demand and low price for Fuji variety apples in the United States.

However, even if imports were to reach 2.6 million pounds (2.2 million

pounds from Japan and 440,000 pounds from the Republic of Korea), this

would constitute less than 1.4 percent of domestic production of Fuji

variety apples. Consequently, allowing Fuji variety apples to be

imported from Japan and the Republic of Korea will not have a

significant economic impact on domestic Fuji variety apple producers or

other small entities.

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 rule allows Fuji variety apples to be imported into the United

States from Japan and the Republic of Korea under certain conditions.

State and local laws and regulations regarding Fuji variety apples

imported under this rule will be preempted while the fruit is in

foreign commerce. Fresh apples 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

In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.

3501 et seq.), the information collection or recordkeeping requirements

included in this final rule will be submitted for approval to the

Office of Management and Budget.

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 August 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 Subpart--Fruits and Vegetables, a new Sec. 319.56-2cc is

added to read as follows:

Sec. 319.56-2cc Administrative instructions governing the entry of

Fuji variety apples from Japan and the Republic of Korea.

Fuji variety apples may be imported into the United States from

Japan and the Republic of Korea only under the following conditions:

(a) Treatment and fumigation. The apples must be cold treated and

then fumigated, under the supervision of an Animal and Plant Health

Inspection Service (APHIS) inspector, either in Japan or the Republic

of Korea, for the peach fruit moth (Carposina niponensis), the yellow

peach moth (Conogethes punctiferalis), the fruit tree spider mite

(Tetranychus viennensis), and the kanzawa mite (T. kanzawai), in

accordance with the Plant Protection and Quarantine Treatment Manual,

which is incorporated by reference at Sec. 300.1 of this chapter.

(b) APHIS inspection. The apples must be inspected upon completion

of the treatments required by paragraph (a) of this section, prior to

export from Japan or the Republic of Korea, by an APHIS inspector and

an inspector from the national plant protection agency of Japan or the

Republic of Korea. The apples shall be subject to further disinfection

in the exporting country if plant pests are found prior to export.

Imported Fuji variety apples inspected in Japan or the Republic of

Korea are also subject to inspection and disinfection at the port of

first arrival, as provided in Sec. 319.56-6.

(c) Trust fund agreements. The national plant protection agency of

the exporting country must enter into a trust fund agreement with APHIS

before APHIS will provide the services necessary for Fuji variety

apples to be imported into the United States from Japan or the Republic

of Korea. The agreement requires the national plant protection agency

to pay in advance of each shipping season all costs that APHIS

estimates it will incur in providing services in Japan or the Republic

of Korea 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 national plant

protection agency to deposit a certified or cashiers 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 national plant protection agency to deposit with

APHIS a certified or cashiers check for the amount of the remaining

costs, as determined by APHIS, before APHIS will provide any more

services necessary for Fuji variety apples to be imported into the

United States from that country. After a final audit at the conclusion

of each shipping season, any overpayment of funds will be returned to

the national plant protection agency, or held on account until needed,

at that agency's option.

(d) Department not responsible for damage. The treatments

prescribed in paragraph (a) of this section are judged from

experimental tests to be safe for use with Fuji variety apples from

Japan and the Republic of Korea. However, the Department assumes no

responsibility for any damage sustained through or in the course of

such treatment or by compliance with requirements under paragraph (a)

or (b) of this section.

Done in Washington, DC, the 11th day of August 1994.

William S. Wallace,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 94-20181 Filed 8-16-94; 8:45 am]

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