Pork and Pork Products From Mexico Transiting the United States

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 94

[Docket No. 98-095-1]

Pork and Pork Products From Mexico Transiting the United States

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The importation and in-transit movement of fresh (chilled or

frozen) pork and pork products from Mexico into the United States is

restricted because of the presence of hog cholera in some areas in

Mexico. We are proposing to amend the regulations to allow fresh

(chilled or frozen) pork and pork products from the Mexican States of

Baja California Sur, Coahuila, Nuevo Leon, Tamaulipas, Sinaloa,

Campeche, and Quintana Roo to transit the United States, under certain

conditions, for export to another country. We are proposing this action

because there has been no outbreak of hog cholera in any of the States

of Baja California Sur, Coahuila, Nuevo Leon, Tamaulipas, Sinaloa,

Campeche, or Quintana Roo since 1993, and it appears that fresh

(chilled or frozen) pork and pork products from each of the above

States could transit the United States under seal with an insignificant

risk of introducing hog cholera.

DATES: We invite you to comment on this docket. We will consider all

comments that we receive by September 17, 1999.

ADDRESSES: Please send your comment and three copies to: Docket No. 98-

095-1, Regulatory Analysis and Development, PPD, APHIS, Suite 3C03,

4700 River Road, Unit 118, Riverdale, MD 20737-1238. Please state that

your comment refers to Docket No. 98-095-1.

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.

APHIS documents published in the Federal Register, and related

information, including the names of organizations and individuals who

have commented on APHIS rules, are available on the Internet at http://

www.aphis.usda.gov/ppd/rad/webrepor.html.

FOR FURTHER INFORMATION CONTACT: Dr. Michael David, Senior Staff

Veterinarian, Animals Program, National Center for Import and Export,

VS, APHIS, 4700 River Road Unit 39, Riverdale, MD 20737, (301) 734-

4356.

SUPPLEMENTARY INFORMATION:

Background

The regulations in 9 CFR part 94 (referred to below as the

regulations)

[[Page 38600]]

prohibit or restrict the importation of certain animals and animal

products into the United States to prevent the introduction of certain

animal diseases. Section 94.9 of the regulations prohibits the

importation of pork and pork products into the United States from

countries where hog cholera exists, unless the pork or pork products

have been treated in one of several ways, all of which involve heating

or curing and drying.

Because hog cholera exists in certain areas in Mexico, pork and

pork products from most Mexican States must meet the requirements of

Sec. 94.9 to be imported into the United States. Section 94.20 provides

an exception, allowing the importation of fresh (chilled or frozen)

pork and pork products from the Mexican State of Sonora.

Under Sec. 94.15, pork and pork products that are from certain

Mexican States and that are not eligible for entry into the United

States in accordance with the regulations in Sec. 94.9 or Sec. 94.20

may transit the United States for immediate export if certain

conditions are met. These provisions were added to the regulations in

1992, following a United States Department of Agriculture investigation

of the hog cholera situation in Sonora, Mexico, and a determination

that pork and pork products from Sonora could transit the United

States, under certain conditions, with minimal risk of introducing hog

cholera. Final rules published in the Federal Register in 1995, 1996,

and 1997 applied the provisions to Chihuahua, Yucatan, and Baja

California, respectively.

Mexico's Director of Animal Health has requested that we allow pork

and pork products from additional Mexican States to transit the United

States under the same conditions. The additional Mexican States are

Baja California Sur, Coahuila, Nuevo Leon, Tamaulipas, Sinaloa,

Campeche, and Quintana Roo.

In response, officials of the Animal and Plant Health Inspection

Service (APHIS) have met with Mexican representatives knowledgeable in

disease prevention, epidemiology, and diagnostic methods. The team

reviewed the information supplied by these representatives (discussed

below) and found two factors contributing to the seven States' apparent

successes in remaining free of hog cholera: The States' locations and

controls by Mexico's Division of Animal Health on the movement into the

States of pork, pork products, and live swine. Based on this review,

the team recommended granting Mexico's request.

General Information

As required by the Mexican Government, pork from Mexico that is

currently eligible to transit the United States under Sec. 94.15 must

be processed and packaged in Tipo de Internacional Federal (TIF) plants

that are approved by the Mexican Government and that are subject to

strict Federal supervision to ensure that international health

standards are maintained. A ``TIF'' may be a slaughter facility or a

processing plant, or a combination of the two.

The seven States that are subject to this proposed rule and other

States recognized by Mexico as free of hog cholera may import live

swine only from other hog cholera-free States and countries. The

Mexican Government requires shipments of swine from hog cholera-free

countries to be accompanied by a certificate of origin issued by that

country's veterinary authorities and by a certificate of import issued

by the Mexican veterinary authorities. States recognized by Mexico as

free of hog cholera also require and issue their own permits and health

certificates, further ensuring that the products originate in a hog

cholera-free region. In addition, live swine and pork imported into

these hog cholera-free States must be shipped in sealed trucks, and all

shipments are inspected at inspection stations located either on State

lines or at international ports of entry.

The Mexican government also requires that any fresh pork or pork

products that are shipped for processing to a hog cholera-free State

from a region where hog cholera is believed to exist arrive at TIF

processing plants in sealed, numbered containers. The seals must show

no evidence of tampering, and the shipment must be accompanied by a

certificate signed by an authorized official in the region of origin.

Once they arrive at the TIF plant in a hog cholera-free State, such

pork and pork products must be clearly labeled and set apart from pork

that is eligible for importation into the United States to ensure that

no comminglement occurs. Mexico further protects its swine population

from hog cholera by requiring that pork that originates in non-hog

cholera-free regions may only enter commerce in hog cholera-free States

after it is heated or cured and dried.

Baja California Sur

The last outbreak of hog cholera in the Mexican State of Baja

California Sur occurred in May 1993. Vaccination for hog cholera was

discontinued in 1980. Mexico officially recognized Baja California Sur

as free of hog cholera in December 1993.

Baja California Sur is bordered on the north by the Mexican State

of Baja California, which Mexico recognizes as free of hog cholera. To

the west of Baja California Sur is the Pacific Ocean and to the east is

the Gulf of California.

There is little swine production in Baja California Sur and there

are no TIF plants that handle swine and pork in the State. According to

1997 production data, Baja California Sur produced 788 metric tons of

pork (less than one tenth of one percent of Mexico's total pork

production for that year).

Coahuila

The last outbreak of hog cholera in the Mexican State of Coahuila

occurred in 1984. Vaccination for hog cholera was discontinued in 1984.

Mexico officially recognized Coahuila as free of hog cholera in July

1995.

Coahuila is bordered on the northwest by the Mexican State of

Chihuahua, which Mexico recognizes as free of hog cholera. Coahuila is

bordered on the southwest by the Mexican States of Durango and

Zacatecas, both of which are in the eradication phase of Mexico's

National Campaign Against Classical Swine Fever (hog cholera). To the

southeast of Coahuila is the Mexican State of Nuevo Leon, which Mexico

declared free of hog cholera in July 1995. To the north and east of

Coahuila is the United States, which is free of hog cholera.

Three TIF plants handle swine and pork in the State of Coahuila.

According to 1997 production data, Coahuila produced approximately

13,423 metric tons of pork (less than 1.5 percent of Mexico's total

pork production for that year).

Nuevo Leon

The last outbreak of hog cholera in the Mexican State of Nuevo Leon

occurred in 1990. Vaccination for hog cholera was discontinued in 1993.

Mexico officially recognized Nuevo Leon as free of hog cholera in July

1995.

Nuevo Leon is bordered on the northwest by the Mexican State of

Coahuila, on the northeast by the United States, and on the northeast

and southeast by the Mexican State of Tamaulipas, which Mexico

considers free of hog cholera. To the southwest of Nuevo Leon is the

Mexican State of San Luis Potosi, which is in the eradication phase of

Mexico's National Campaign Against Classical Swine Fever.

Eight TIF plants handle swine and pork in the State of Nuevo Leon.

According to 1997 production data, Nuevo Leon produced approximately

[[Page 38601]]

17,416 metric tons of pork (less than 2 percent of Mexico's total pork

production for that year).

Tamaulipas

The last outbreak of hog cholera in the Mexican State of Tamaulipas

occurred in 1984. Vaccination for hog cholera was discontinued in 1993.

Mexico officially recognized Tamaulipas as free of hog cholera in July

1995.

Tamaulipas is bordered on the northwest by the Mexican State of

Nuevo Leon and on the northeast by the United States. To the southeast

of Tamaulipas is the Gulf of Mexico. To the south and west of

Tamaulipas are the Mexican States of San Luis Potosi and Veracruz. San

Luis Potosi is in the eradication phase of Mexico's National Campaign

Against Classical Swine Fever, and Veracruz is in the control phase.

One TIF plant handles swine and pork in the State of Tamaulipas.

According to 1997 production data, Tamaulipas produced approximately

6,490 metric tons of pork (less than 1 percent of Mexico's total pork

production for that year).

Sinaloa

The last outbreak of hog cholera in the Mexican State of Sinaloa

occurred in April 1990. Vaccination for hog cholera was discontinued in

1990. Mexico officially recognized Sinaloa as free of hog cholera in

November 1993.

Sinaloa is bordered on the west by the Gulf of California and the

Pacific Ocean. To the north and northeast of Sinaloa are the Mexican

States of Sonora and Chihuahua, both of which are considered free of

hog cholera by Mexico. To the east and south of Sinaloa are the Mexican

States of Durango and Nayarit. Both Durango and Nayarit are in the

eradication phase of Mexico's National Campaign Against Classical Swine

Fever.

Three TIF plants handle swine and pork in the State of Sinaloa.

According to 1997 production data, Sinaloa produced approximately

12,968 metric tons of pork (less than 1.5 percent of Mexico's total

pork production for that year).

Campeche

The last outbreak of hog cholera in the Mexican State of Campeche

occurred in 1989. Vaccination for hog cholera was discontinued in 1995.

Mexico officially recognized Campeche as free of hog cholera in

December 1997.

Campeche is bordered on the northeast and east by the Mexican

States of Yucatan and Quintana Roo, respectively, both of which are

considered free of hog cholera by Mexico. To the northwest of Campeche

is the Gulf of Mexico. South and southwest of Campeche are Guatemala

and the Mexican State of Tabasco. Hog cholera is believed to exist in

Guatemala. Tabasco is currently in the control phase of Mexico's

National Campaign Against Classical Swine Fever.

According to 1997 production data, Campeche produced approximately

3,363 metric tons of pork (less than one half of 1 percent of Mexico's

total pork production for that year).

Quintana Roo

The last outbreak of hog cholera in the Mexican State of Quintana

Roo occurred in 1980. Vaccination for hog cholera was discontinued in

1994. Mexico officially recognized Baja California as free of hog

cholera in July 1996.

Quintana Roo is bordered on the north and west by the Mexican

States of Yucatan and Campeche, both of which are considered free of

hog cholera by Mexico. To the east of Quintana Roo is the Caribbean

Sea. South of Quintana Roo is Belize, which has not been officially

recognized as free of hog cholera and, therefore, does not export pork

or live swine to Mexico.

There are no TIF plants that handle swine and pork in the State of

Quintana Roo. According to 1997 production data, Quintana Roo produced

approximately 7,250 metric tons of pork (less than 1 percent of

Mexico's total pork production for that year).

Conditions for Movement Through the United States

The following conditions for in-transit movement currently apply to

pork and pork products from Baja California, Chihuahua, Sonora, and

Yucatan. Under this proposed rule, they would also apply to pork and

pork products from Baja California Sur, Coahuila, Nuevo Leon,

Tamaulipas, Sinaloa, Campeche, and Quintana Roo.

1. Any person wishing to move pork or pork products from one of

these States through the United States for export must first obtain a

permit for importation from APHIS. The application for the permit tells

APHIS who will be involved in the transportation, how much and what

type of pork and pork products will be transported, when they will be

transported, and the method and route of shipment.

2. The pork or pork products must be packaged prior to movement

from the State in a leakproof container and sealed with a serially

numbered seal approved by APHIS. The container must remain sealed at

all times while transiting the United States.

3. The person moving the pork or pork products through the United

States must inform the APHIS officer at the United States port of

arrival, in writing, of the following information before the pork or

pork products arrive in the United States: The time and date that the

pork or pork products are expected at the port of arrival in the United

States, the time schedule and route of the shipments through the United

States, the permit number, and the serial numbers of the seals on the

containers.

4. The pork or pork products must transit the United States under

Customs bond.

5. The pork or pork products must be exported from the United

States within the time period specified on the permit.

Any pork or pork products exceeding the time limit specified on the

permit or transiting in violation of any of the requirements of the

permit or the regulations may be destroyed or otherwise disposed of at

the discretion of the Administrator, APHIS, pursuant to section 2 of

the Act of February 2, 1903, as amended (21 U.S.C. 111).

These safeguards are intended to prevent tampering with the

shipments, ensure that the shipments actually leave the United States,

and otherwise ensure that the shipments do not present a risk of

introducing hog cholera into the United States.

Under these circumstances--the low risk associated with the pork

and pork products coupled with the safeguards for in-transit

shipments--we believe that there would be little, if any, risk of

introducing hog cholera into the United States by allowing pork and

pork products from Baja California Sur, Coahuila, Nuevo Leon,

Tamaulipas, Sinaloa, Campeche, and Quintana Roo to transit the United

States for export. Therefore, we are proposing to amend Sec. 94.15 to

allow pork and pork products from the Mexican States of Baja California

Sur, Coahuila, Nuevo Leon, Tamaulipas, Sinaloa, Campeche, and Quintana

Roo to transit the United States for export under the same conditions

that currently apply to pork and pork products from Baja California,

Chihuahua, Sonora, and Yucatan.

Executive Order 12866 and Regulatory Flexibility Act

This proposed rule has been reviewed under Executive Order 12866.

The rule has been determined to be not significant for the purposes of

Executive Order 12866 and, therefore, has not been reviewed by the

Office of Management and Budget.

[[Page 38602]]

In accordance with 5 U.S.C. 603, we have performed an Initial

Regulatory Flexibility Analysis, which is set out below, regarding the

effects of this proposed rule on small entities. Based on the

information we have, there is no basis to conclude that this rule will

result in any significant economic effects on a substantial number of

small entities. However, we do not currently have all of the data

necessary for a comprehensive analysis of the effects of this proposed

rule on small entities. Therefore, we are inviting comments on

potential effects. In particular, we are interested in determining the

number and kind of small entities that may incur benefits or costs from

the implementation of this proposed rule.

In accordance with 21 U.S.C. 111-113, 114a, 115, 117, 120, 123, and

134a, the Secretary of Agriculture has the authority to promulgate

regulations and take measures to prevent the introduction into the

United States, and the interstate dissemination within the United

States, of communicable diseases of livestock and poultry.

This proposed rule would allow fresh (chilled or frozen) pork and

pork products from the Mexican States of Baja California Sur, Coahuila,

Nuevo Leon, Tamaulipas, Sinaloa, Campeche, and Quintana Roo to transit

the United States, under certain conditions, for export to another

country.

There appears to be little risk of hog cholera exposure from

shipments of pork and pork products from Baja California Sur, Coahuila,

Nuevo Leon, Tamaulipas, Sinaloa, Campeche, and Quintana Roo transiting

the United States. Assuming that proper risk management techniques

continue to be applied in Mexico, and that accident and exposure risk

are minimized by proper handling during transport, the risk of exposure

to hog cholera from pork in transit from Mexico through the United

States would be minimal.

The proposed rule would have no direct effect on U.S. producers and

consumers of pork because Mexican pork would only transit the United

States and would not enter U.S. marketing channels. Neither the

quantity or price of pork traded in U.S. domestic markets, nor U.S.

consumer or producer surplus would be affected by the proposed rule.

Effects on Small Transport Firms

This proposed rule, if implemented, could directly affect U.S.

trucking companies in the border states of Texas and California. These

companies would benefit from transporting an estimated 5 to 6 thousand

metric tons annually of Mexican pork and pork products from U.S. land

border ports to U.S. maritime ports. Additional annual revenues

generated by the proposed rule would range from $2,000 to $3,000 for

California transport firms (based on an additional 5 to 7 trips

annually), and from $10,000 to $57,000 for Texas transport firms (based

on an additional 15 to 18 trips annually). The majority (98 percent) of

trucking firms in Texas and California meets the Small Business

Administration's definition of small firm (less than $18.5 million in

receipts annually). However, based on the limited number of trips and

negligible amount of revenue generated by these trips, it is safe to

conclude that the proposed rule would not have a significant economic

impact on a substantial number of small trucking firms.

Effects on U.S. Pork Exporters

The extent to which the proposed rule would affect U.S. pork

exporters is unclear, but, based on historical data on Mexican pork

exports, it appears that the overall effect of the proposed rule would

be to increase the quantity of Mexican pork destined for the Japanese

frozen pork market. According to Japanese import statistics, Japan

imported 382,000 metric tons of frozen swine cuts valued at roughly

$1.9 billion in 1997. Denmark, Taiwan, and the United States were the

top three suppliers, but Mexico and Canada, who are relative newcomers

to the Japanese frozen pork market, have gained market share in recent

years. As discussed above, we estimate that an additional 5,000 to

6,000 metric tons annually of frozen pork from Mexico would transit the

United States for Japan after adoption of the proposed rule. This is

roughly 1.4 percent of the total quantity imported by Japan in 1997.

During the period 1996 through 1997, Mexican frozen pork exports to

Japan increased from 12,953 metric tons (valued at $76 million) to

24,408 metric tons (valued at $122 million). During the same period,

U.S. frozen pork exports to Japan decreased from 64,500 metric tons

valued at $360 million to 48,000 metric tons valued at $244 million.

Analysts cite price advantage and the willingness of Mexican packers to

tailor pork cuts to Japanese specifications as key reasons for Mexico's

increased market share in 1997.

Since this rule simply allows pork from additional Mexican States

to transit the United States for immediate export, it is unclear

whether this rule would result in increased volumes of Mexican exports

to foreign regions (e.g., Japan), though it would likely result in

increased volumes of pork transiting the United States. It is possible

that the volume of Mexico's total pork exports would remain constant,

though the volume of pork in transit through the United States would

increase. This scenario would likely have a minimal economic effect on

U.S. pork exporters, whether small or large. However, since we are

unable to determine whether this rule will result in increased volumes

of Mexican pork exports, we cannot determine the effect of this rule on

U.S. pork exporters, whether small or large.

Trade Relations

This proposal would remove some restrictions on the importation of

pork and pork products from Mexico and would encourage a positive

trading environment between the United States and Mexico and other

regions where hog cholera is considered to exist by stimulating

economic activity and providing export opportunities to foreign pork

processing industries.

The proposed changes to the regulations would result in new

information collection or recordkeeping requirements, as described

below under the heading, ``Paperwork Reduction Act.''

Executive Order 12988

This proposed rule has been reviewed under Executive Order 12988,

Civil Justice Reform. If this proposed rule is adopted: (1) All State

and local laws and regulations that are inconsistent with this rule

will be preempted; (2) no retroactive effect will be given to this

rule; and (3) administrative proceedings will not be required before

parties may file suit in court challenging this rule.

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. 98-095-1.

Please send a copy of your comments to: (1) Docket No. 98-095-1,

Regulatory Analysis and Development, PPD, APHIS, suite 3C03, 4700 River

Road 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

[[Page 38603]]

effect if OMB receives it within 30 days of publication of this

proposed rule.

This proposed rule would amend the regulations to allow fresh

(chilled or frozen) pork and pork products from the Mexican States of

Baja California Sur, Coahuila, Nuevo Leon, Tamaulipas, Sinaloa,

Campeche, and Quintana Roo to transit the United States, under certain

conditions, for export to another country.

Implementing this proposed rule would necessitate the use of

several information collection activities, including the completion of

an import permit application, the placement of serially number seals on

product containers, and the forwarding of a written, pre-arrival

notification to APHIS port personnel.

We are asking OMB to approve these information collection

activities in connection with our efforts to ensure that fresh pork and

pork products transiting the United States from Mexico pose a

negligible risk of introducing hog cholera into the United States.

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

submission of responses).

Estimate of burden: Public reporting burden for this collection of

information is estimated to average .744 hours per response.

Respondents: Exporters in Mexico, and full-time, salaried

veterinarians of Mexico's Animal Health Inspection Service.

Estimated annual number of respondents: 20.

Estimated annual number of responses per respondent: 12.5.

Estimated annual number of responses: 250.

Estimated total annual burden on respondents: 186 hours.

Copies of this information collection can be obtained from:

Clearance Officer, OCIO, USDA, room 404-W, 14th Street and Independence

Avenue, SW., Washington, DC 20250.

List of Subjects in 9 CFR Part 94

Animal diseases, Imports, Livestock, Meat and meat products, Milk,

Poultry and poultry products, Reporting and recordkeeping requirements.

Accordingly, we propose to amend 9 CFR part 94 as follows:

PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL

PLAGUE), VELOGENIC VISCEROTROPIC NEWCASTLE DISEASE, AFRICAN SWINE

FEVER, HOG CHOLERA, AND BOVINE SPONGIFORM ENCEPHALOPATHY:

PROHIBITED AND RESTRICTED IMPORTATIONS

1. The authority citation for part 94 would continue to read as

follows:

Authority: 7 U.S.C. 147a, 150ee, 161, 162, and 450; 19 U.S.C.

1306; 21 U.S.C. 111, 114a, 134a, 134b, 134c, 134f, 136, and 136a; 31

U.S.C. 9701; 42 U.S.C. 4331 and 4332; 7 CFR 2.22, 2.80, and

371.2(d).

2. In Sec. 94.15, paragraph (b) introductory text would be revised

to read as follows:

Sec. 94.15 Animal products and materials; movement and handling.

* * * * *

(b) Pork and pork products from Baja California, Baja California

Sur, Campeche, Chihuahua, Coahuila, Nuevo Leon, Quintana Roo, Sinaloa,

Sonora, Tamaulipas, and Yucatan, Mexico, that are not eligible for

entry into the United States in accordance with this part may transit

the United States for immediate export if the following conditions are

met:

* * * * *

Done in Washington, DC, this 13th day of July, 1999.

Charles P. Schwalbe,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 99-18321 Filed 7-16-99; 8:45 am]

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