[Federal Register Volume 63, Number 17 (Tuesday, January 27, 1998)]
[Proposed Rules]
[Pages 3844-3848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1808]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 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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  Federal Register / Vol. 63, No. 17 / Tuesday, January 27, 1998 / 
Proposed Rules  

[[Page 3844]]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 319

[Docket No. 97-060-1]
RIN 0579-AA88


Karnal Bunt Status of the Mexicali Valley of Mexico

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: We are proposing to amend the wheat diseases regulations by 
recognizing a wheat-growing area within the Mexicali Valley of Mexico 
as being free from the wheat disease Karnal bunt. Surveys conducted by 
Mexican plant health authorities in that area of the Mexicali Valley 
since 1990 have shown the area to be free from Karnal bunt, and Mexican 
authorities are enforcing restrictions designed to protect the area 
from the introduction of Karnal bunt. This proposed change would have 
the effect of removing certain restrictions on the importation into the 
United States of wheat seed, straw, and other wheat products from the 
Karnal bunt free area of the Mexicali Valley.

DATES: Consideration will be given only to comments received on or 
before March 30, 1998.

ADDRESSES: Please send an original and three copies of your comments to 
Docket No. 97-060-1, Regulatory Analysis and Development, PPD, APHIS, 
Suite 3C03, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please 
state that your comments refer to Docket No. 97-060-1. Comments 
received may be inspected at USDA, room 1141, South Building, 14th 
Street and Independence Avenue SW., Washington, DC, between 8 a.m. and 
4:30 p.m., Monday through Friday, except holidays. Persons wishing to 
inspect comments are requested to call ahead on (202) 690-2817 to 
facilitate entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Mr. James A. Petit de Mange, Import 
Specialist, Phytosanitary Issues Management Team, PPQ, APHIS, USDA, 
4700 River Road Unit 140, Riverdale, MD 20737-1236; (301) 734-6799; fax 
(301) 734-5786; e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The regulations in ``Subpart--Wheat Diseases'' (7 CFR 319.59 
through 319.59-2, referred to below as the regulations), restrict the 
importation into the United States of certain seeds, plants, and plant 
products from certain countries or localities in order to prevent the 
introduction of foreign strains of flag smut and Karnal bunt, two 
fungal diseases of wheat (Triticum spp.). Specific provisions relating 
to foreign strains of flag smut are located in paragraph (a) of 
Sec. 319.59-2 of the regulations, and specific provisions concerning 
Karnal bunt are found in paragraph (b) of that section.
    Under Sec. 319.59-2(b) of the regulations, wheat seeds, plants, 
straw (except straw without heads that has been processed or 
manufactured into articles such as decorative wall hangings, clothing, 
or toys), chaff, and products of the milling process other than flour 
(i.e., bran, thistle sharps, and pollards) are designated as prohibited 
articles if they are from Afghanistan, India, Iraq, Mexico, or 
Pakistan, which are countries in which Karnal bunt is considered to 
exist. Prohibited articles may be imported into the United States only 
by the U.S. Department of Agriculture for experimental or scientific 
purposes in accordance with Sec. 319.59-2(c).
    The Government of Mexico has requested that the Animal and Plant 
Health Inspection Service (APHIS) recognize the Mexicali Valley area of 
Mexico as free from Karnal bunt. In support of its request, the Mexican 
Government submitted the results of annual surveys conducted in the 
wheat-producing areas of the Mexicali Valley since 1990 by Mexico's 
national plant protection organization, Sanidad Vegetal.
    APHIS has reviewed the documentation submitted by the Government of 
Mexico in support of its request and conducted an on-site evaluation of 
Mexico's plant health programs in the Mexicali Valley with regard to 
Karnal bunt. The evaluation consisted of a review of Mexico's Karnal 
bunt survey activities, laboratory and testing procedures for the 
examination of samples collected during the surveys, and the 
administration of laws and regulations intended to prevent the 
introduction of Karnal bunt into the Mexicali Valley's wheat-growing 
areas from the rest of Mexico and from outside the country. After 
reviewing the documentation provided by Mexico and the data gathered 
during the on-site visit, we believe that Mexico has demonstrated, in 
accordance with the standards established by the North American Plant 
Protection Organization for pest-free areas, that the wheat-growing 
areas of the Mexicali Valley are free from Karnal bunt. We believe, 
therefore, that there is no longer any biological justification for 
that area of Mexico to be listed with the countries and localities 
considered to be affected with Karnal bunt.
    Therefore, we are proposing to amend Sec. 319.59-2(b) of the 
regulations by adding an exception for the Karnal bunt free area of the 
Mexicali Valley to the entry for Mexico on the list of countries and 
localities affected with Karnal bunt. This proposed action would mean 
that wheat seed, straw, and the other wheat products described in 
Sec. 319.59-2(b)(1) of the regulations from the Karnal bunt free area 
of the Mexicali Valley would no longer be considered prohibited 
articles under the wheat diseases regulations. However, the importation 
of wheat plants into the United States from the Karnal bunt free area 
of the Mexicali Valley would continue to be prohibited under the 
regulations in ``Subpart--Nursery Stock, Plants, Roots, Bulbs, Seeds, 
and Other Plant Products'' (7 CFR 319.37 through 319.37-14). 
Specifically, Sec. 319.37-2(a) lists Poaceae (vegetative parts of all 
grains and grasses) from all foreign places except Canada as prohibited 
articles due to a wide diversity of plant diseases.
    For the purposes of the regulations, we would define the Karnal 
bunt free area of the Mexicali Valley as those portions of the 
municipality of Mexicali, in the State of Baja California, and the 
municipality of San Luis Rio Colorado, in the State of Sonora, that 
constitute the Distrito de Desarrollo Rural 002, Rio

[[Page 3845]]

Colorado (Rural Development District 002, Colorado River). The area 
described in that definition encompasses the wheat-growing area of the 
Mexicali Valley that has been the subject of the ongoing Karnal bunt 
surveys described above and falls completely within the area into which 
the movement of potential Karnal bunt host material is prohibited by 
Mexican plant health regulations to prevent the introduction of Karnal 
bunt.
    Because the remainder of Mexico has not been recognized as being 
free from Karnal bunt, we would include two additional conditions on 
the importation into the United States of wheat seed, straw, and other 
wheat products from the Mexicali Valley.
    First, we would require that the articles be offered for entry at 
the port of Calexico, CA, which is staffed by APHIS inspectors and lies 
across the border from the northern boundary of the Karnal bunt free 
area of the Mexicali Valley. That port of entry is served by both a 
main road and a rail line that pass through the Karnal bunt free area, 
so any wheat or other articles from the Karnal bunt free area would 
remain within that area during their movement to the United States for 
entry. Once the articles arrive at the port of Calexico, CA, the 
shipment would have to be made available to an APHIS inspector for 
examination and would remain at the port of entry until an inspector 
released the shipment or authorized its further movement pending 
release.
    Second, we would require that wheat or other articles offered for 
entry be accompanied by a phytosanitary certificate issued by Mexico's 
national plant protection organization. That certificate would have to 
include a statement confirming that the wheat or other articles were 
grown in the designated Karnal bunt free area of the Mexicali Valley 
and remained in that area prior to and during their movement to the 
United States. The phytosanitary certificate would be reviewed by an 
APHIS inspector at the port of entry to ensure that the wheat or other 
articles offered for entry into the United States were indeed grown and 
harvested in the area of Mexico that has been shown to be free of 
Karnal bunt and did not leave that area while in transit to the port of 
entry.

Other Changes

    As part of this proposed rule, we would make several other changes 
to update the regulations. First, we would remove the authority 
citation that appears at the beginning of ``Subpart--Wheat Diseases.'' 
The authority that applies to all of part 319, including the subpart, 
is cited at the beginning of the part.
    We are proposing to amend Sec. 319.59(a) to correct three erroneous 
references within that paragraph to other paragraphs in the subpart. 
Specifically, there are two references to provisions in Sec. 319.59-
2(b) that provide for the importation of otherwise prohibited articles; 
those provisions are actually located in paragraph Sec. 319.59-2(c). 
The third erroneous reference is to articles designated in Sec. 319.59-
2(a) as prohibited articles. Although that paragraph does contain a 
list of prohibited articles, there is also a list of prohibited 
articles in Sec. 319.59-2(b). We would, therefore, change that 
reference so that it refers to prohibited articles designated in 
Sec. 319.59-2 (a) and (b).
    We are also proposing to amend paragraph (b) of Sec. 319.59, which 
provides for the disposition of articles that have been refused 
importation in accordance with the requirements of the regulations. 
That paragraph currently states that such articles shall be promptly 
removed from the United States or abandoned by the importer for 
destruction. Although the phrase ``abandoned by the importer for 
destruction'' could be construed as indicating that the importer would 
be relieved of any further responsibility for the articles after 
abandoning them, the importer is actually responsible for the costs of 
destruction. We are, therefore, proposing to amend the paragraph to 
make it clear that when an article is to be destroyed rather than 
reexported, the costs of destroying the article are the responsibility 
of the importer.
    We are proposing to update the list of countries in Sec. 319.59-
2(a)(2) by removing a reference to the ``Union of Soviet Socialist 
Republics'' and adding the 15 successor States to the former Soviet 
Union in its place. We would also update several country names that are 
currently included on the list of countries.
    Finally, we are proposing to make minor changes for the sake of 
consistency in two other subparts in part 319, namely ``Subpart--
Foreign Cotton and Covers'' (Secs. 319.8 through 319.8-27) and 
``Subpart--Packing Materials'' (Secs. 319.69 through 319.69-5). Each of 
those subparts contains a list of countries that is intended to agree 
with the list of countries found in Sec. 319.59-2 of the regulations. 
However, after the lists in those two subparts were established, they 
were not updated to reflect subsequent amendments to ``Subpart--Wheat 
Diseases.'' Therefore, we would amend Sec. 319.8-10(d) and 
Sec. 319.69(b)(1) to remove the inaccurate lists of countries and 
replace them with a reference to Sec. 319.59-2 of the regulations, 
where the updated lists of countries and localities considered affected 
with foreign strains of flag smut and Karnal bunt are located.

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.
    This proposed rule would amend the wheat diseases regulations by 
recognizing a wheat-growing area within the Mexicali Valley of Mexico 
as being free from the wheat disease Karnal bunt. This proposed change 
is based on surveys conducted by Mexican plant health authorities in 
that area of the Mexicali Valley since 1990 that have shown the area to 
be free from Karnal bunt, and on the enforcement by Mexican authorities 
of restrictions designed to protect the area from the introduction of 
Karnal bunt. This proposed change would have the effect of removing 
certain restrictions on the importation into the United States of wheat 
seed, straw, and other wheat products from the Karnal bunt free area of 
the Mexicali Valley.
    This proposed rule would primarily affect wheat growers in the 
United States. There were 292,464 farms growing wheat in the United 
States in 1992, and 96 percent of those farms would be considered small 
entities. (According to the standard set by the Small Business 
Administration for agricultural producers, a producer with less than 
$0.5 million annually in sales qualifies as a small entity.) We have, 
therefore, examined the potential economic impact of the proposed 
action on small entities, as required by the Regulatory Flexibility 
Act, and in doing so, have assessed the anticipated costs and benefits 
of the proposed action, as required by Executive Order 12866.
    The United States produced an average of 2,330 million bushels of 
wheat per year between 1992 and 1996. Of this amount, hard red winter 
wheat (grown primarily in Kansas, Oklahoma, and Texas) accounted for 
about 39 percent of production; hard red spring wheat (grown primarily 
in North Dakota, Minnesota, and Montana) accounted for about 24 percent 
of production; soft red winter wheat (grown primarily in Missouri, 
Illinois, and Ohio) accounted for about 19 percent of production; white 
wheat (grown primarily in Washington and Oregon) accounted for about 14 
percent

[[Page 3846]]

of production; and durum wheat (grown primarily in North Dakota, 
Arizona, California, and Montana) accounted for about 4 percent of 
production.
    The United States is a net exporter of wheat, accounting for about 
11.4 percent of world wheat production and approximately 32 percent of 
world wheat exports. Of the average 2,330 million bushels of wheat 
produced per year between 1992 and 1996, an average of 51 percent of 
that wheat was exported from the United States, while wheat imports 
have accounted for less than 1 percent of the total U.S. wheat supply 
in recent years.
    Mexico produced an average of about 137 million bushels of wheat 
per year between 1994 and 1996, most of which was grown in the States 
of Baja California, Guanajuato, Sinaloa, and Sonora. Mexico is a net 
importer of wheat, having imported in 1996 an amount of wheat equal to 
about 53 percent of production while exporting less than 4 percent of 
production; imports made up about 35 percent of Mexico's total wheat 
supply in 1996.
    The Mexicali Valley, from which wheat could be exported to the 
United States under this proposed rule, is located in two of Mexico's 
leading wheat-producing States, Baja California and Sonora. The 
Mexicali Valley produced 445,967 metric tons of wheat in 1995; about 53 
percent (236,171 metric tons) of that wheat was shipped to markets 
elsewhere in Mexico. Nearly all of the Mexicali Valley's wheat is sown 
in October and November and harvested from late May to early July. 
Table 1 below shows the classes of wheat grown in the Mexicali Valley 
between 1994 and 1996 and the average production share and use 
distribution of each class.

   Table 1.--Wheat Class, Production Share, and Use Distribution of Mexicali Valley Wheat; 1994-1996 Averages   
----------------------------------------------------------------------------------------------------------------
                                                  Production              Use distribution (percent)            
                  Wheat class                       share    ---------------------------------------------------
                                                  (percent)       Food         Feed         Seed        Other   
----------------------------------------------------------------------------------------------------------------
Hard Red Winter................................         61.3         65.0         25.0          3.2          6.8
White..........................................         36.2         61.5         24.6          2.6         11.3
Durum..........................................          2.2         38.5          2.1         58.8          0.6
Soft Red Winter................................          0.3         33.2         13.9         36.0         16.9
----------------------------------------------------------------------------------------------------------------

    Between 1994 and 1997, producers in the Mexicali Valley shipped an 
average of 9 million bushels each year to other markets in Mexico; we 
have used that amount in Table 2, below, as an estimate of the total 
amount of wheat potentially available for export to U.S. markets. Table 
2 summarizes the estimated economic impacts in the United States, based 
on a price elasticity of -0.63, of different levels of wheat exports 
from the Mexicali Valley and from the estimated producer losses and 
consumer gains that would result. For example, a 20 percent diversion 
of Mexicali Valley wheat production from markets in other countries or 
the domestic Mexican market to the United States would be expected to 
result in a price decrease of 0.09 percent in the United States. U.S. 
producers would lose about $5.92 million (which, when distributed among 
the 292,464 wheat farms noted above, amounts to about $20.25 per farm), 
while consumers would gain about the same amount, for a net benefit in 
this scenario of about $3,000. At the other end of the spectrum, a 100 
percent diversion of Mexicali Valley wheat production from other 
markets to the United States would be expected to result in a price 
decrease of 0.45 percent in the United States. U.S. wheat producers 
would lose about $29.56 million (or about $101.00 per farm), while 
consumers would gain about $29.64 million, for a net benefit in this 
scenario of about $74,500. In all cases, consumer gains slightly 
outweigh producer losses.

   Table 2.--Potential Impact in the United States of the Redirection of Mexicali Valley Wheat to U.S. Markets  
                                           (Price Elasticity is -0.63)                                          
----------------------------------------------------------------------------------------------------------------
                                             Percentage of Mexicali Valley-origin wheat shipments diverted from 
                                                   other (domestic or export) markets to the U.S. market:       
                                           ---------------------------------------------------------------------
                                                 20            40            60            80            100    
----------------------------------------------------------------------------------------------------------------
Imports (millions of bushels).............          1.8           3.6           5.4           7.2           9.0 
Percent change in price...................        (0.09)        (0.17)        (0.27)        (0.36)        (0.45)
Percent change in quantity................        (0.04)        (0.08)        (0.13)        (0.17)        (0.22)
Decrease in producer surplus (millions of                                                                       
 dollars).................................        (5.92)       (11.83)       (17.75)       (23.66)       (29.56)
Increase in consumer surplus (millions of                                                                       
 dollars).................................         5.92         11.84         17.77         23.70         29.64 
Total surplus (millions of dollars).......        0.003        0.0119        0.0268        0.0477        0.0745 
----------------------------------------------------------------------------------------------------------------

    How likely even a 20 percent diversion of Mexicali Valley wheat to 
the U.S. market would be, however, is unclear. The production area of 
the Mexicali Valley is closer to markets in the United States than it 
is to markets in central Mexico, which means that lower transportation 
costs may encourage Mexicali Valley producers to ship their wheat to 
the United States. However, the Mexican government is considering a 
transportation subsidy for growers in northwestern Mexico to offset the 
transportation advantage that growers in central Mexico have in 
marketing their crops in Mexico City. Such a subsidy may encourage 
Mexicali Valley producers to sell their wheat in Mexico.
    Prices for Mexicali Valley wheat may well prove to be a determining 
factor with regard to the level of potential exports, as the costs of 
production in the Mexicali Valley are much higher than U.S. production 
costs. The cost of Mexicali Valley wheat averaged

[[Page 3847]]

between $2.47 and $3.54 per bushel, with total economic costs (which 
include fertilizers, irrigation, harvest costs, interest on credit, 
etc.) ranging between $227.60 to $247.50 per acre. The cost of wheat 
grown in the United States, on the other hand, averaged $2.47 per 
bushel, with total economic costs averaging $155 per acre. With its 
higher production costs and the added cost of transportation across the 
border into the United States, it may prove difficult for Mexicali 
Valley wheat to compete in the U.S. market.
    The actual extent of any decrease in wheat prices in the United 
States resulting from action proposed in this document would depend to 
a great degree upon the size of the price elasticity of demand, the 
magnitude of the change in supply, and the size of the baseline price. 
For lower price elasticities, both losses and gains would be higher. We 
expect that the amount of wheat exported from the Mexicali Valley would 
not be large and would not, therefore, change wheat production and 
consumption patterns in the United States. Further, the increase in 
wheat supplies in the United States from an increase in imports from 
Mexico would likely be offset to some extent by an increase in exports 
of wheat from the United States to Mexico. Nevertheless, allowing the 
importation of wheat from the Mexicali Valley would likely have a net 
positive impact on the overall economy, since consumer benefits at any 
level of imports would be slightly higher than producer losses.
    The only significant alternative to this proposed rule would be to 
make no changes in the wheat diseases regulations, i.e., to continue to 
prohibit the importation of wheat and wheat products from Mexico. We 
have rejected that alternative because we believe that Mexico has 
demonstrated that the wheat-growing areas of the Mexicali Valley are 
free from Karnal bunt, which means that there is no longer any 
biological justification for that area of Mexico to be listed with the 
countries and localities considered to be affected with Karnal bunt. 
Maintaining a prohibition on the importation of wheat and wheat 
products from the Mexicali Valley in light of that area's demonstrated 
freedom from Karnal bunt would run counter to the United States' 
obligations under international trade agreements and would likely be 
challenged through the World Trade Organization. Conversely, our 
proposal to declare the wheat-growing areas of the Mexicali Valley free 
from Karnal bunt would likely have a beneficial effect on international 
trade in general, and trade between the United States and Mexico in 
particular, by reaffirming the United States' continuing commitment to 
using scientifically valid principles as the basis for regulation.
    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 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. 97-060-1. 
Please send a copy of your comments to: (1) Docket No. 97-060-1, 
Regulatory Analysis and Development, PPD, APHIS, suite 3C03, 4700 River 
Road Unit 118, Riverdale, MD 20737-1238, and (2) Clearance Officer, 
OIRM, 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 wheat diseases regulations by 
recognizing a wheat-growing area within the Mexicali Valley of Mexico 
as being free from the wheat disease Karnal bunt. This proposed change 
would have the effect of removing certain restrictions on the 
importation into the United States of wheat seed, straw, and other 
wheat products from the Karnal bunt free area of the Mexicali Valley.
    Because the remainder of Mexico is still considered to be affected 
with Karnal bunt, we would require that a phytosanitary certificate 
accompany wheat and other wheat-related articles offered for entry from 
the Karnal bunt free area of the Mexicali Valley. That certificate 
would have to be issued by Mexican plant health authorities, and would 
have to state that the wheat or other articles had been grown in the 
designated Karnal bunt free area of the Mexicali Valley.
    We are soliciting comments from the public (as well as affected 
agencies) concerning our proposed information collection and 
recordkeeping requirements. We need this outside input to 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 1.2 hours per response.
    Respondents: Mexican plant health authorities, growers/exporters of 
wheat products in the Mexicali Valley.
    Estimated number of respondents: 20.
    Estimated number of responses per respondent: 5.
    Estimated annual number of responses: 100.
    Estimated total annual burden on respondents: 120 hours.
    Copies of this information collection can be obtained from 
Clearance Officer, OIRM, USDA, room 404-W, 14th Street and Independence 
Avenue SW., Washington, DC 20250.

List of Subjects in 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, 7 CFR part 319 is proposed to 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. 150dd, 150ee, 150ff, 151-167, 450, 2803, and 
2809; 21 U.S.C. 136 and 136a; 7 CFR 2.22, 2.80, and 371.2(c).

[[Page 3848]]

Sec. 319.8-10  [Amended]

    2. In Subpart--Foreign Cotton and Covers, Sec. 319.8-10(d) would be 
amended by removing the words ``Sec. 319.59 (notice of quarantine No. 
59 relating to the flag smut disease)'' and adding the words 
``Sec. 319.59-2(a)(2)'' in their place, and footnote 5 and its 
reference in the text would be removed.


Sec. 319.8-11  [Amended]

    3. In Subpart--Foreign Cotton and Covers, Sec. 319.8-11(a) 
introductory text, footnote 6 and its reference in the text would be 
redesignated as footnote 5.


Sec. 319.8-17  [Amended]

    4. In Subpart--Foreign Cotton and Covers, Sec. 319.8-17(d), 
footnote 7 and its reference in the text would be redesignated as 
footnote 6.
    5. The authority citation for ``Subpart--Wheat Diseases'' would be 
removed.


Sec. 319.59  [Amended]

    6. In Subpart--Wheat Diseases, Sec. 319.59 would be amended as 
follows:
    a. In paragraph (a), in the first sentence, the reference 
``Sec. 319.59-2(b)'' would be removed and the reference ``Sec. 319.59-
2(c)'' would be added in its place.
    b. In paragraph (a), in the last sentence, the reference 
``Sec. 319.59-2(a)'' would be removed and the reference ``Sec. 319.59-
2(a) and (b)'' added in its place, and the reference ``Sec. 319.59-
2(b)'' would be removed and the reference ``Sec. 319.59-2(c)'' added in 
its place.
    c. In paragraph (b), in the first sentence, the words ``abandoned 
by the importer for destruction'' would be removed and the words 
``destroyed as deemed necessary by an inspector at the expense of the 
importer'' would be added in their place.
    d. In paragraph (b), in the last sentence, the words ``abandoned 
for destruction by'' would be removed and the words ``destroyed as 
deemed necessary by an inspector at the expense of'' would be added in 
their place.
    7. In Subpart--Wheat Diseases, Sec. 319.59-2 would be amended as 
follows:
    a. In the introductory text of paragraph (a), the words ``in 
paragraph (b)'' would be removed and the words ``in paragraph (c)'' 
added in their place.
    b. In paragraph (a)(1)(i), the word ``Triticums'' would be removed 
and the word ``Triticum'' added in its place.
    c. Paragraph (a)(2) would be revised to read as set forth below.
    d. In paragraph (b)(2), the words ``(except for that portion of the 
Mexicali Valley described in paragraph (b)(3) of this section),'' would 
be added after the word ``Mexico''.
    e. A new paragraph (b)(3) would be added to read as set forth 
below.
    f. In paragraph (c)(2), the reference ``7 CFR 319.37-14(b)'' would 
be removed and the reference ``Sec. 319.37-14(b)'' added in its place.


Sec. 319.59-2  Prohibited articles.

    (a) * * *
    (2) Afghanistan, Algeria, Armenia, Australia, Azerbaijan, 
Bangladesh, Belarus, Bulgaria, Chile, China, Cyprus, Egypt, Estonia, 
Falkland Islands, Georgia, Greece, Guatemala, Hungary, India, Iran, 
Iraq, Israel, Italy, Japan, Kazakstan, Kyrgyzstan, Latvia, Libya, 
Lithuania, Moldova, Morocco, Nepal, North Korea, Oman, Pakistan, 
Portugal, Romania, Russia, Spain, Tajikistan, Tanzania, Tunisia, 
Turkey, Turkmenistan, South Africa, South Korea, Ukraine, Uzbekistan, 
and Venezuela.
    (b) * * *
    (3) The following area of the Mexicali Valley in Mexico has been 
determined to be free from Karnal Bunt: Those portions of the 
municipality of Mexicali, in the State of Baja California, and the 
municipality of San Luis Rio Colorado, in the State of Sonora, that are 
included in the Distrito de Desarrollo Rural (Rural Development 
District) 002 Rio Colorado. Except for wheat (Triticum spp.) plants, 
which are prohibited importation under Sec. 319.37-2(a), any articles 
described in paragraph (b)(1) of this section that are from that 
designated area may be imported into the United States subject to the 
following conditions:
    (i) The articles are offered for entry at the port of Calexico, CA; 
and
    (ii) The articles offered for entry are made available for 
examination by an inspector and remain at the port until released, or 
authorized further movement pending release, by an inspector; and
    (iii) The articles are accompanied by a phytosanitary certificate 
issued by the Mexican national plant protection organization that 
certifies that the articles are from the area of the Mexicali Valley 
described in this paragraph and remained within that area prior to and 
during their movement to the United States.
* * * * *
    8. In Subpart--Packing Materials, Sec. 319.69(b)(1) would be 
revised to read as follows:


Sec. 319.69  Notice of quarantine.

* * * * *
    (b) * * *
    (1) Cereal straw, hulls, and chaff (such as oats, barley, and rye) 
from all countries, except rice straw, hulls, and chaff, which are 
prohibited importation from all countries by paragraph (a)(1) of this 
section, and except wheat straw, hulls, and chaff, which are restricted 
importation by Sec. 319.59 from any country or locality listed in 
Sec. 319.59-2.
* * * * *
    Done in Washington, DC, this 21st day of January 1998.
Terry L. Medley,
Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 98-1808 Filed 1-26-98; 8:45 am]
BILLING CODE 3410-34-P