[Federal Register Volume 59, Number 153 (Wednesday, August 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19511]


[[Page Unknown]]

[Federal Register: August 10, 1994]


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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) 
------------------------------------------------------------------------
                                                                        
                  *        *        *        *        *                 
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