[Federal Register Volume 63, Number 155 (Wednesday, August 12, 1998)]
[Proposed Rules]
[Pages 43117-43125]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21595]


 ========================================================================
 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. 155 / Wednesday, August 12, 1998 / 
Proposed Rules  

[[Page 43117]]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Parts 300 and 319

[Docket No. 97-110-1]
RIN 0579-AA92


Importation of Grapefruit, Lemons, and Oranges from Argentina

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: We are proposing to amend the citrus fruit regulations by 
recognizing a citrus-growing area within Argentina as being free from 
citrus canker. Surveys conducted by Argentine plant health authorities 
in that area of Argentina since 1992 have shown the area to be free 
from citrus canker, and Argentine authorities are enforcing 
restrictions designed to protect the area from the introduction of that 
disease. We are also proposing to amend the fruits and vegetables 
regulations to allow the importation of grapefruit, lemons, and oranges 
from the citrus canker-free area of Argentina under conditions designed 
to prevent the introduction into the United States of two other 
diseases of citrus, sweet orange scab and citrus black spot, and other 
plant pests. These proposed changes would allow grapefruit, lemons, and 
oranges to be imported into the United States from Argentina subject to 
certain conditions.

DATES: Consideration will be given only to comments received on or 
before October 13, 1998.

ADDRESSES: Please send an original and three copies of your comments to 
Docket No. 97-110-1, 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. 97-110-1. 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. Ron Campbell, Import Specialist, 
Phytosanitary Issues Management Team, PPQ, APHIS, 4700 River Road Unit 
140, Riverdale, MD 20737-1236; (301) 734-6799; e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    The regulations in ``Subpart--Fruits and Vegetables'' (7 CFR 319.56 
through 319.56-8, referred to below as the fruits and vegetables 
regulations) prohibit or restrict the importation of fruits and 
vegetables into the United States from certain parts of the world to 
prevent the introduction and dissemination of plant pests, including 
fruit flies, that are new to or not widely distributed within the 
United States.
    The regulations in ``Subpart--Citrus Fruit'' (7 CFR 319.28, 
referred to below as the citrus fruit regulations), restrict the 
importation of the fruit and peel of all genera, species, and varieties 
of the subfamilies Aurantioideae, Rutoideae, and Toddalioideae of the 
family Rutaceae into the United States from specified countries in 
order to prevent the introduction of citrus canker disease (Xanthomonas 
campestris pv. citri (Hasse) Dye).
    Argentina is not currently listed in Sec. 319.28(a)(1) of the 
citrus fruit regulations as a country from which importations are 
restricted to prevent the introduction of citrus canker, but scientific 
literature indicates that the A strain of citrus canker--i.e., that 
which is referred to in Sec. 319.28(a)(1)--occurs in Argentina. 
Therefore, in this document, we are proposing to amend 
Sec. 319.28(a)(1) by adding Argentina to the list of countries from 
which importations are restricted to prevent the introduction of citrus 
canker. However, as explained below under the heading ``Citrus Canker 
Free Area,'' the entry for Argentina would contain an exception for the 
States of Catamarca, Jujuy, Salta, and Tucuman.
    The citrus fruit regulations also restrict the importation of the 
fruit and peel of all species and varieties of the genus Citrus into 
the United States from specified countries, including Argentina, in 
order to prevent the introduction of the citrus diseases sweet orange 
scab (Elsinoe australis Bitanc. and Jenkins) and the B strain of citrus 
canker, which is referred to in the citrus fruit regulations as 
``Cancrosis B.''
    In this document, the A and B strains of citrus canker are referred 
to collectively as citrus canker, except in those instances where it is 
necessary to refer specifically to either of the two strains.

Citrus Canker Free Area

    The Government of Argentina has requested that the Animal and Plant 
Health Inspection Service (APHIS) recognize the citrus production areas 
in four States in northwestern Argentina--Catamarca, Jujuy, Salta, and 
Tucuman--as free from citrus canker. In support of its request, the 
Argentine Government submitted the results of surveys conducted in the 
citrus-producing areas of those four States since 1992 by Argentina's 
national plant protection organization, the Servicio Nacional de 
Sanidad y Calidad Agroalimentaria (SENASA).
    APHIS has reviewed the documentation submitted by the Government of 
Argentina in support of its request and conducted an on-site evaluation 
in 1994 of Argentina's plant health programs in Catamarca, Jujuy, 
Salta, and Tucuman with regard to citrus diseases. 1 The 
evaluation consisted of a review of Argentina's citrus canker 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 citrus canker 
into the citrus-growing areas of Catamarca, Jujuy, Salta, and Tucuman 
from the rest of Argentina and from outside the country. After 
reviewing the documentation provided by Argentina and the data gathered 
during the on-site visit, we believe that the Government of Argentina 
has demonstrated, in accordance with the standards established by the 
United Nations' Food and Agriculture Organization (FAO) for

[[Page 43118]]

pest-free areas, that the citrus-growing areas of Catamarca, Jujuy, 
Salta, and Tucuman are free from citrus canker.
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    \1\ Information regarding the documentation submitted by the 
Government of Argentina and the on-site visit conducted by APHIS may 
be obtained from the person listed under FOR FURTHER INFORMATION 
CONTACT.
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    Based on the information provided by Argentina and the information 
gathered by APHIS, we are proposing to amend Sec. 319.28(a) to reflect 
the citrus canker-free status of Catamarca, Jujuy, Salta, and Tucuman. 
Currently, the regulations in Sec. 319.28(a)(3) list the entire country 
of Argentina, among other places, as being affected with Cancrosis B. 
Therefore, we would amend the entry for Argentina in Sec. 319.28(a)(3) 
to indicate that the States of Catamarca, Jujuy, Salta, and Tucuman are 
considered to be free from Cancrosis B. Similarly, the proposed new 
entry for Argentina in Sec. 319.28(a)(1), as discussed above, would 
also indicate that those four States are considered to be free from 
citrus canker (i.e., the A strain).
    We are also proposing to amend Sec. 319.28(a)(2) of the citrus 
fruit regulations, which prohibits the importation of citrus fruit and 
peel from certain countries, including Argentina, based on the presence 
of sweet orange scab in those countries. As discussed in the next 
paragraph, we are proposing to amend the fruits and vegetables 
regulations to allow the importation of grapefruit, lemons, and oranges 
from Argentina under conditions designed to prevent the introduction of 
sweet orange scab. Therefore, in order to prevent a conflict between 
the citrus fruit regulations and the fruits and vegetables regulations, 
we are proposing to add an exception to the prohibition on citrus fruit 
and peel from Argentina in Sec. 319.28(a)(2). Specifically, we would 
add the words ``except as provided by Sec. 319.56-2f of this part'' 
after the entry for Argentina in the list of countries considered to be 
affected with sweet orange scab. That proposed exception would refer 
the reader to Sec. 319.56-2f of the fruits and vegetables regulations, 
which is the section we are proposing to add that would contain the 
conditions under which grapefruit, lemons, and oranges could be 
imported into the United States from Argentina.

Importation of Grapefruit, Lemons, and Oranges

    The Government of Argentina has requested that APHIS allow the 
importation of grapefruit, lemons, and oranges into the United States 
from the citrus canker-free States of Catamarca, Jujuy, Salta, and 
Tucuman. Because there are plant pests of concern other than citrus 
canker known to exist in Argentina, the proposed importation of 
grapefruit, lemons, and oranges would be subject to certain conditions. 
As noted above in our discussion of the content of the citrus fruit 
regulations, the disease sweet orange scab exists in Argentina. In 
addition to sweet orange scab, Argentina is also affected with a fungal 
disease known as citrus black spot (Guignardia citricarpa), the 
Mediterranean fruit fly (Medfly) (Ceratitis capitata), and certain 
fruit flies of the genus Anastrepha. To prevent the introduction into 
the United States of those diseases and fruit flies, the Government of 
Argentina, with the cooperation of APHIS, has formulated a systems 
approach of tiered and overlapping measures that, when combined with 
specified cold treatments, would reduce the risks presented by those 
pests to a negligible level.
    Therefore, we are proposing to allow fresh grapefruit, lemons, and 
oranges to be imported into the United States from Argentina if they 
are grown, packed, and shipped under specified phytosanitary conditions 
designed to mitigate the risk of plant pest introduction. The proposed 
conditions for importation, which would be set out in a new 
Sec. 319.56-2f in the fruits and vegetables regulations, are explained 
below.

Permit Requirement

    The fruits and vegetables regulations require persons contemplating 
the importation of fruits or vegetables that are authorized entry under 
the regulations to first apply for a permit from APHIS. That permit 
requirement, which is found in Sec. 319.56-3 of the fruits and 
vegetables regulations, would be applicable to the importation of 
grapefruit, lemons, and oranges under the provisions of this proposed 
rule.

Origin Requirement.

    The grapefruit, lemons, or oranges would have to have been grown in 
a grove located in a region of Argentina that has been determined to be 
free from citrus canker. As discussed above, we believe that the 
Government of Argentina has demonstrated, in accordance with FAO 
standards, that the citrus-growing areas of Catamarca, Jujuy, Salta, 
and Tucuman are free from citrus canker. This proposed requirement 
would ensure that the grapefruit, lemons, or oranges would not present 
a risk of introducing citrus canker into the United States.

Grove requirements

    The grapefruit, lemons, or oranges would have to have been grown in 
a grove that meets several specified conditions intended to prevent the 
introduction of sweet orange scab and citrus black spot into the United 
States.
    We would require that the grove be registered with the citrus fruit 
export program of SENASA. Grower registration would, from an 
administrative standpoint, allow SENASA to identify specific groves and 
thus track each grove's compliance with the requirements of the export 
program during the growing season and during the movement of fruit to 
the packinghouses and subsequent export.
    We would also require that the grove be surrounded by a 150-meter-
wide buffer area that would be subject to the same treatments as would 
be applied in the export grove. This buffer area, in which citrus fruit 
could be grown but from which no citrus fruit could be offered for 
importation into the United States, would separate the export grove 
from surrounding agricultural or nonagricultural areas. Because those 
areas lying outside the buffer area would not be subject to the same 
measures as would be applied in the export grove and buffer area, there 
is the possibility that sweet orange scab or citrus black spot may be 
present in those areas. Thus, by providing for the suppression of 
disease inoculum over a wide area, the buffer area would offer the 
export grove an additional measure of protection from those diseases.
    In order to prevent the introduction of diseased trees into an 
export grove, we would require that any new citrus planting stock used 
in the grove be obtained from a ``clean'' source. This proposed 
requirement is already being implemented by SENASA as part of its 
administration of laws and regulations intended to prevent the 
introduction of citrus canker into the citrus-growing areas of 
Catamarca, Jujuy, Salta, and Tucuman from the rest of Argentina and 
from outside the country.
    Under our proposed regulations, planting stock would have to be 
obtained from a source (e.g., the grove itself, another grove, or a 
nursery) located within the States of Catamarca, Jujuy, Salta, or 
Tucuman, or from a SENASA-approved citrus stock propagation center. We 
would allow the use of planting stock that originated within Catamarca, 
Jujuy, Salta, or Tucuman because those States have been determined to 
be free of citrus canker and because Argentine Government regulations 
restrict the entry of potential citrus canker host material into those 
States. Similarly, any citrus plants imported into Argentina, and any 
domestic-origin citrus plants from outside the four citrus canker-free 
States, must meet strict phytosanitary requirements before they may 
enter the States of Catamarca, Jujuy, Salta, or Tucuman. Under SENASA 
supervision,

[[Page 43119]]

such citrus plants are officially tested to ensure their freedom from 
quarantine pests and diseases, and are grown in quarantine before being 
released for use in the citrus canker-free area of Argentina. We 
believe that requiring growers to obtain any new grapefruit, lemon, or 
orange propagative material from one of these sources would help ensure 
that disease is not introduced into an export grove by new citrus 
planting stock.
    Fallen fruit, leaves, and branches could serve as potential 
reservoirs of disease inoculum, especially for citrus black spot. 
Therefore, we would require those materials to be removed from the 
grove floor and from the ground in the buffer area before the trees in 
the grove blossom, which is the phase of the growing cycle in which 
citrus black spot infection primarily occurs. Removing fallen fruit, 
leaves, and branches before the trees in the grove blossom would help 
to ensure that the grove is as clean as possible prior to the 
development of the fruit that would eventually be exported to the 
United States. We would further require that the grove and buffer area 
be inspected by SENASA before blossom to verify that the required 
sanitation measures had been accomplished.
    We would further require that the grove and buffer area be treated 
at least twice with an oil-copper oxychloride spray during the growing 
season in which fruit was being produced for export to the United 
States. Treatment with oil-copper oxychloride has been shown to provide 
control of sweet orange scab and citrus black spot in Argentina. In 
order to obtain the maximum benefit from each treatment, the timing of 
the treatments would be determined by SENASA based on its monitoring of 
climatic data, fruit susceptibility, and the presence of disease 
inoculum. SENASA personnel would have to monitor the application of the 
treatments to ensure that the treatments were being applied correctly 
and at the proper time.
    Finally, as an additional means of verifying an export grove's 
freedom from sweet orange scab and citrus black spot, we would require 
that each grove and buffer area be surveyed by SENASA 20 days before 
the harvest of the grove's grapefruit, lemons, or oranges. The required 
survey would consist of a visual inspection of the grove and the buffer 
area to check for visible signs of the presence of either disease, 
followed by the laboratory examination of a sample of fruit. Fruit 
would be sampled at the rate of 320 fruit from each 200 hectares, and 
the fruit would be selected according to a randomized sampling protocol 
determined by SENASA.

Post-harvest Handling of Fruit

    After being harvested from an export grove, the grapefruit, 
oranges, or lemons would have to be handled in accordance with several 
specific conditions.
    We would require that the grapefruit, lemons, or oranges be moved 
from the export grove to the packinghouse in field boxes or containers 
of field boxes that are marked to show the SENASA registration number 
of the grove in which they were grown. The identity of the origin of 
the fruit would have to be maintained during the time the fruit is 
being handled and prepared for shipment in the packinghouse. These 
proposed requirements would ensure that SENASA inspectors would be able 
to trace the fruit back to its grove of origin in the event that 
disease was detected on the fruit.
    We would prohibit a packinghouse in which grapefruit, lemons, or 
oranges are processed for export to the United States from accepting 
any fruit from nonregistered export groves during the time that fruit 
intended for export to the United States is being handled in the 
packinghouse. Barring the entry of fruit from nonregistered groves into 
the packinghouse would ensure that the fruit intended for export is not 
commingled with or potentially infected by fruit that was grown in a 
grove that has not been subject to the same sanitation, inspection, and 
treatment measures that would be required for export groves.
    After its arrival at the packinghouse, we would require the fruit 
to be held in the packinghouse at room temperature for 4 days. This 
proposed 4-day holding period would allow sufficient time for the 
symptoms of citrus black spot to become evident in the grapefruit, 
lemons, or oranges in the event that any latent infection exists in the 
fruit. At the conclusion of the 4-day holding period, the fruit would 
have to be examined by SENASA inspectors to verify its freedom from 
visible signs of disease.
    Once the SENASA inspectors have determined that the fruit is free 
from visible signs of disease, we would require the grapefruit, lemons, 
or oranges to be chemically treated. Specifically, the fruit would be 
sequentially treated with: (1) Immersion in sodium hypochlorite 
(chlorine) at a concentration of 200 parts per million; (2) immersion 
in orthophenilphenate of sodium; (3) spraying with imidazole; and (4) 
application of 2-4 thiazalil benzimidazole and wax. These treatments 
would surface-sterilize the fruit and protect against the development 
of any spores that may be present. After the fruit has been treated, 
and before it is packed into clean, new shipping cartons for export, we 
would require that SENASA inspectors examine the grapefruit, lemons, or 
oranges a final time for any evidence of disease. The clean, new 
shipping cartons would have to be marked with the registration number 
of the grove in which the fruit was grown in order for APHIS or SENASA 
to trace the fruit back to its origin in the event that pests or 
diseases are detected in the fruit after it leaves the packinghouse.

Phytosanitary Certificate

    We would require grapefruit, lemons, and oranges offered for entry 
into the United States from Argentina to be accompanied by a 
phytosanitary certificate issued by SENASA that states the grapefruit, 
lemons, or oranges were produced and handled in accordance with the 
origin requirement, grove requirements, and post-harvest handling 
requirements discussed above. The phytosanitary certificate would also 
have to state that the grapefruit, lemons, or oranges were examined and 
found to be free from citrus black spot and sweet orange scab. The 
phytosanitary certificate would serve as SENASA's official confirmation 
that the requirements of the regulations in proposed Sec. 319.56-2f(a), 
(b), and (c) had been met.

Cold Treatment

    As noted above, Medfly and fruit flies of the genus Anastrepha are 
known to exist in Argentina. Therefore, we would require grapefruit, 
lemons (except smooth-skinned lemons), and oranges offered for entry 
from Argentina to be treated with an authorized cold treatment listed 
in the Plant Protection and Quarantine (PPQ) Treatment Manual in order 
to prevent the introduction of fruit flies into the United States. 
(Smooth-skinned lemons would be exempted from the proposed cold 
treatment requirement because they have been shown through Agricultural 
Research Service studies \2\ to not be a host of Medfly, and lemons are 
not reported to be hosts of Anastrepha spp. fruit flies.) The cold 
treatment that would be required, which is designated as T107(c) in the 
PPQ Treatment Manual, is approved for use on a variety of fruits--
including grapefruit and oranges--to treat for

[[Page 43120]]

Anastrepha spp. fruit flies. The treatment is as follows:
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    \2\ Information on this research may be obtained from the person 
listed under FOR FURTHER INFORMATION CONTACT.

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                                                                Exposure
                         Temperature                             period 
                                                                 (days) 
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32  deg.F or below...........................................         11
33  deg.F or below...........................................         13
34  deg.F or below...........................................         15
35  deg.F or below...........................................         17
------------------------------------------------------------------------

    Because the exposure times in T107(c) are longer than those in 
T107(a), the cold treatment for Medfly, the treatment would serve to 
prevent the introduction of all the fruit flies of concern.
    We would have to amend the PPQ Treatment Manual in order to include 
grapefruit, lemons (except smooth-skinned lemons), and oranges from 
Argentina in that document's list of countries and fruits for which 
cold treatment is authorized. Therefore, because the PPQ Treatment 
Manual is incorporated by reference into the regulations in Title 7, 
chapter III, we would also have to amend Sec. 300.1, ``Materials 
incorporated by reference; availability,'' to reflect the date of that 
amendment to the PPQ Treatment Manual.
    The cold treatment would have to be conducted in accordance with 
the existing requirements of Sec. 319.56-2d of the fruits and 
vegetables regulations, which applies to the importation of fresh 
fruits for which cold treatment is a condition of entry. That section 
sets forth the general requirements concerning the place and manner of 
cold treatment, safeguarding of untreated fruit, precooling and 
refrigeration, and special requirements for treatment at certain ports.

Inspection at Port of First Arrival

    Grapefruit, lemons, and oranges offered for entry into the United 
States from Argentina would be subject to Sec. 319.56-6 of the fruits 
and vegetables regulations, which provides, among other things, that 
all imported fruits and vegetables, as a condition of entry, shall be 
inspected and shall be subject to disinfection at the port of first 
arrival, as may be required by a U.S. Department of Agriculture (USDA) 
inspector to detect and eliminate plant pests. Section 319.56-6 also 
provides that any shipment of fruits and vegetables may be refused 
entry if the shipment is so infested with fruit flies or other 
injurious plant pests that an inspector determines that it cannot be 
cleaned or treated. The inspector at the port of arrival would also 
review the documentation, including the phytosanitary certificate, 
accompanying the fruit to ensure that it was being imported in 
accordance with the regulations.

Disease detection

    If citrus black spot or sweet orange scab is detected on any 
grapefruit, lemons, or oranges during the course of any of the 
inspections or tests required by proposed Sec. 319.56-2f, the grove in 
which the fruit was grown, or was being grown, would have to be removed 
from the SENASA citrus export program for the duration of that year's 
growing and harvest season. We would also prohibit, for the remainder 
of that growing and harvest season, the importation of any fruit 
harvested from a grove determined to be affected with one of those 
diseases. These proposed measures would be a necessary step in response 
to the detection of any of the diseases that the proposed regulations 
are designed to exclude.
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 citrus fruit regulations by 
recognizing a citrus-growing area within Argentina as being free from 
citrus canker. This proposed rule would also amend the fruits and 
vegetables regulations to allow the importation of grapefruit, lemons, 
and oranges from the citrus canker-free area of Argentina under 
conditions designed to prevent the introduction into the United States 
of two other diseases of citrus, sweet orange scab and citrus black 
spot, and other plant pests. These proposed changes would allow 
grapefruit, lemons, and oranges to be imported into the United States 
from Argentina subject to certain conditions.
Analysis
    This analysis considers the potential economic impact on domestic 
producers of citrus of allowing the importation of fresh citrus fruits 
from Argentina into the United States. It focuses on citrus production, 
price, and potential consumer and producer impacts of the proposed 
rule. The possible impacts considered include losses to domestic 
producers and gains to consumers due to decreased prices. The magnitude 
of the impact would depend on the size of additional Argentine supply, 
the U.S. supply and demand for citrus, and price conditions in the rest 
of the world. The data sources used for the analysis include: USDA, 
National Agricultural Statistics Service production statistics; USDA, 
Economic Research Service, ``Foreign Agricultural Trade of the United 
States;'' USDA, Agricultural Marketing Service, marketing information; 
USDA, Foreign Agricultural Service (FAS), ``Annual Citrus Report;'' and 
United Nations, Food and Agricultural Organization (FAO), production 
and trade statistics.
U.S. Citrus Industry

Citrus production

    The United States produced an annual average of 31,460 million 
pounds of citrus between 1992 and 1996, with an average annual total 
value of $2.5 billion. Four States--Arizona, California, Florida and 
Texas--accounted for almost all of the commercial citrus fruit 
production. Of these, California (21 percent) and Florida (76 percent) 
accounted for approximately 97 percent of the citrus production. A 
small amount of citrus fruit is produced in Hawaii and Louisiana. The 
major varieties of citrus fruit include oranges (73 percent), 
grapefruit (12 percent), lemons (10 percent) tangerines (2.16 percent), 
tangelos (0.88 percent), temples (0.65 percent), and limes (0.08 
percent). The first four--oranges, grapefruit, lemons, and tangerines--
account for about 98 percent of the total U.S. citrus production. The 
1996 value of U.S.-produced citrus was: Oranges, $1.82 billion; 
grapefruit, $296 million; lemons, $251 million; limes, $4 million; 
tangelos, $15 million; tangerines, $111 million; and temples, $14 
million. The United States accounted for nearly 24 percent of world 
citrus production.
    In 1992 (the latest census year), citrus fruit was produced on 
17,898 farms (528 in Arizona; 8,104 in California; 8,205 in Florida; 
509 in Texas; 458 in Hawaii; and 94 in Louisiana). Approximately 96 
percent of U.S. citrus fruit farms (Standard Industrial Classification 
0272) had gross sales of less than $500,000 and thus are considered to 
be small entities according to the Small Business Administration size 
standards (13 CFR 121.601). These small citrus farms accounted for less 
than 34 percent of the total citrus growing acreage, while the 
remaining 4 percent of citrus farms (i.e., those with annual gross 
sales of $500,000 or more) accounted for about 66 percent of the 
acreage.
    Production for the fresh citrus fruit market accounted for about 28 
percent of total citrus production or approximately 4.5 million tons. 
The share of citrus fruits destined for the fresh market (as opposed to 
the

[[Page 43121]]

processing or export markets) varied by State and by fruit. Nearly 69 
percent of citrus production in Arizona, 72 percent in California, 14 
percent in Florida, and 69 percent in Texas was for the fresh market. 
Overall, about 20 percent of oranges, 47 percent of grapefruit, 54 
percent of lemons, and 70 percent of tangerines was for the fresh 
market.
    U.S. production of citrus fruits showed an annual growth rate of 
3.5 percent between 1985 and 1996. Of the major citrus fruits, oranges 
increased at an average annual rate of 4.5 percent and tangerines at 
3.8 percent, while grapefruits and lemons did not show any increase. 
The annual average consumption of citrus fruits in the United States 
has stayed at around 25.2 pounds per person over the last 25 years with 
very little variability (plus or minus 2.6 pounds per person). Specific 
per capita fresh citrus fruit consumption varies by fruit.
    Fresh fruits are marketed throughout the year, most heavily between 
October and May. Overall, domestic shipments of citrus fruit are at 
their lowest during the months of July, August, and September, dropping 
to approximately 3.5 to 5 percent of average annual shipments. U.S. 
citrus exports are also at their lowest during these months. Citrus 
imports are also widely distributed throughout the year, but with 
above-average imports during July, August, and September (about 29 
percent). Wholesale prices follow the same seasonal supply patterns, as 
they are lower during peak production months--October to May--and 
higher during summer months from June to September. Since the peak 
production period for citrus in Argentina is from May to October, the 
entry of Argentine fresh citrus fruits would likely peak during these 
months, which represent the most likely window of opportunity for 
Argentine imports to enter the U.S. market. The annual average terminal 
market wholesale prices in major U.S. cities is approximately 38 cents 
per pound, while the average from June through September is 43 cents 
per pound. Importers and brokers would likely benefit from the entry of 
Argentine citrus fruit into the U.S. market because they would be able 
to provide quality fruits during the months when domestic production is 
lowest. Consumers would be able to obtain a wide choice of fresh citrus 
throughout the year and would not need to wait for the peak domestic 
production season or switch to non-citrus fruits. Producers would not 
need to spend additional resources promoting their product as each new 
harvest season arrives.

Citrus trade

    Since consumption of citrus fruits increased by only 1.5 percent 
between 1985 and 1996 and production increased at 3.5 percent, domestic 
consumption is not keeping up with the growth rate of production. As a 
result, foreign markets play an increasingly important role for U.S. 
producers, accounting for approximately 29 percent of the 1996 annual 
fresh citrus fruit sales. The total value of the U.S. fresh citrus 
fruit exports was approximately $704 million in 1996, accounting for 
approximately 14 percent of world citrus fruit exports in 1996. In 
terms of value, oranges accounted for 41 percent of citrus exports; 
grapefruit for 35.6 percent; lemons and limes for 17.5 percent; 
mandarins and tangerines for 5.2 percent; and other citrus for 0.4 
percent. By weight, about 44 percent of 1996 fresh citrus export was 
oranges, about 41 percent grapefruit, 12 percent lemons and limes and 3 
percent tangerines and other fresh citrus fruits. The United States is 
a net exporter of citrus fruits. The U.S. supply of fresh citrus fruits 
in 1996 was 6,633 million pounds (= 8,712 + 406--2,485 [production plus 
imports minus exports]).
    A few countries accounted for the bulk of the U.S. fresh citrus 
export market. In Asia, Japan (44 percent), Hong Kong (10 percent), the 
Republic of Korea (2.8 percent), Taiwan (2.8 percent), and Singapore 
(1.5 percent) together accounted for approximately 60 percent of the 
total U.S. export market. Next, exports to Canada were about 25 
percent. In Europe, France (3.14 percent), The Netherlands (2.87 
percent), and the United Kingdom (1.13 percent) are the major 
importers. The small remaining proportion is exported to many other 
countries. The United States, as noted above, is not a major importer 
of fresh citrus fruits. Major suppliers are Mexico (42 percent), Spain 
(29.4 percent), and Australia (20 percent). These countries together 
supplied about 91 percent of U.S. fresh citrus imports. Imports of 
fresh citrus fruits were valued at about $92 million.
    U.S. fresh citrus fruit exports increased at an average growth rate 
of 3.1 percent between 1985 and 1996. By fruit, orange exports grew at 
an average rate of 4.2 percent and grapefruit by 3.7 percent, while 
lime and tangerine exports did not change. On the other hand, exports 
of lemons declined by an average rate of 1.1 percent. Since the United 
States is the second largest producer of oranges and the largest 
producer of grapefruits in the world, the positive export growth rate 
in these two commodities is encouraging. Combined with the lower growth 
rate of domestic consumption, the importance to producers of growth in 
export markets is clear.
    Interestingly, imports to the United States increased at an average 
annual growth rate of 10 percent during this period. Most of the 
imports were from countries in the Southern Hemisphere, where growing 
and harvesting seasons are different. Imports are heaviest during the 
months when U.S. production and shipments are lowest. There is also a 
reciprocal window of opportunity for U.S. producers to step in during 
the months when production is low in these countries. The United States 
is developing its trade relationship with Argentina, which is one of 
few countries with which the United States has a favorable balance of 
trade. The United States exported an average of $4,390 million worth of 
goods to Argentina while importing goods and services valued at $1,920 
million. At present, the United States is exporting approximately 
$100,000 worth of citrus fruit to Argentina and importing none. 
Worldwide, the United States exported fresh citrus fruits valued at 
$704 million in 1996, while it imported only $92 million worth of fresh 
citrus fruits. Thus, maintaining competitiveness and creating a 
positive trade environment is very important to U.S. citrus producers.
Argentine Citrus Industry

Production

    Argentina produced an annual average of 3,726 million pounds of 
citrus fruit between 1985 and 1996, with production at about 4,010 
million pounds in 1996. Citrus fruit production has increased at an 
annual growth rate of about 2.3 percent in Argentina, mostly in the 
States of Entre Rios, Tucuman, Misiones, Salta, Corrientes, Buenos 
Aires, and Jujuy, which together account for about 93 percent of 
production. Three of those States--Jujuy, Salta, and Tucuman--would be 
affected by this proposed rule; those States account for 35 percent of 
the total Argentine production, or about 1,550 million pounds of citrus 
fruit. Nearly 51 percent of Argentine citrus fruit production is 
consumed domestically as fresh fruit, 34 percent is processed, and 15 
percent is exported.
    The annual rate of increase in Argentine citrus production between 
1985 and 1996 is attributable mostly to increased lemon production. For 
the other citrus varieties, the growth rate was less than 1 percent or 
there was no change. However, since the current

[[Page 43122]]

export growth rates are higher than the production growth rates, large 
additional export supplies are not expected. Production growth rates 
(2.3 percent) were outpaced by export growth rates (6.92 percent) in 
Argentina. The export growth rates varied by fruit and ranged between a 
0.7 percent annual increase for grapefruit and a 16.9 percent increase 
for tangerines.

Citrus Trade

    Argentina is one of the major citrus fruit exporters in South 
America. It exported 718 million pounds in 1996 and an average of 545 
million pounds per year between 1992 and 1996. Major destinations 
included The Netherlands (52 percent), France (14 percent), Spain (8 
percent), the United Kingdom (10 percent), and Russia (8 percent). 
Smaller importers of Argentine citrus include Portugal, Belgium, 
Germany, Hong Kong and Saudi Arabia. The major destination for 
Argentine fresh citrus fruit is Europe, accounting for nearly 87 
percent of exports. Since the majority of the U.S. fresh citrus exports 
went to the Far East, the two countries appear to be serving distinct 
markets. Using the production and export averages, about 15 percent of 
Argentine citrus production is exported. Imports of fresh citrus 
accounted for only about 0.06 percent of the utilized total Argentine 
citrus supply.
    Argentina can be expected to maintain its well-established export 
markets, mainly in Europe. Because there have been substantial 
investments to cultivate these markets, it is expected that Argentine 
producers and exporters will continue to value them. Developing heavy 
dependence on a single market, such as the United States, would make 
Argentina vulnerable to fluctuations in economic conditions of that 
market. Nevertheless, a moderate level of exports to the United States 
would provide another potential outlet for the Argentine citrus 
industry.

Wholesale Terminal Market Prices

    Fresh citrus fruit wholesale prices are lower in Argentina than in 
the United States. The weighted annual average wholesale price is about 
18 cents per pound (where the weights reflect the respective citrus 
fruit variety production percentages). This does not include the 
overland transport cost from northwestern Argentina to the south 
central coast, the sea freight rate, cold treatment while onboard the 
ship, or the tariff rates, which would add about 15 cents per pound to 
the average Argentine wholesale price. Wholesale prices in the United 
States average 38 cents per pound, or about 20 cents per pound more 
than the average Argentine wholesale price. However, by the time the 
fresh citrus from Argentina would arrive at U.S. ports, with the 
additional costs, the gap would narrow. Current wholesale market prices 
in the Montreal terminal markets indicate that the Argentine fresh 
citrus fruit sells for about the same price or for slightly more than 
the California or Florida varieties. The average (from June through 
September) California lemon price was 46 cents per pound in Montreal, 
while the average for the Argentine lemons was 50 cents per pound. 
Similarly, the average price for California oranges was 40 cents while 
oranges from Argentina sold for 42 cents per pound.

Impact on Producers and Consumers

    Allowing the importation into the United States of citrus from 
Argentina under the conditions described in this proposed rule could 
potentially result in losses for citrus producers in the United States, 
approximately 96 percent of whom, as noted above, are considered to be 
small entities with less than $0.5 million annually in sales. However, 
Argentina exports most of its fresh citrus fruit during the summer 
months, so citrus from Argentina would not compete with the late fall, 
winter, and early spring citrus peak production season in the United 
States, thus limiting the impact on U.S. producers, exporters, and 
importers of citrus, and on other small entities that depend on citrus 
fruit sales. Citrus importers in the United States could be expected to 
benefit from the increased availability of citrus fruit, especially 
navel oranges, during the time of year when U.S. production is at its 
lowest; U.S. consumers of fresh citrus fruits, brokerage houses, 
packers, and truckers could also be expected to benefit.
    The potential economic effects of those imports would depend upon 
the size of the pre-import U.S. supply, pre-import fresh citrus fruit 
prices, and the elasticities of demand. Overall, the expected impacts 
would be a slight loss for producers and a slight gain for consumers, 
due to increased supply and potentially lower prices. The estimated 
impacts of introducing imported citrus from Argentina into the U.S. 
market are as shown in Table 1.

   Table 1.--Importation of Citrus From Argentina: Potential Impact on U.S. Citrus Market (Price Elasticity of  
                                                Demand is -0.233)                                               
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Imports \1\ (millions of pounds)..........       10            20            30            40            50     
Percent change in price...................       (0.29)        (0.58)        (0.87)        (1.17)        (1.46) 
Percent change in quantity \2\............       (0.08)        (0.17)        (0.25)        (0.33)        (0.41) 
Decrease in producer surplus (millions of                                                                       
 dollars).................................       (7.347)      (14.688)      (22.023)      (29.352)      (36.674)
Increase in consumer surplus (millions of                                                                       
 dollars).................................        7.353        14.710        22.073        29.440        36.813 
Total surplus (millions of dollars).......        0.006         0.022         0.050         0.088         0.139 
----------------------------------------------------------------------------------------------------------------
\1\ The projected import totals of 10, 20, 30, 40, and 50 million pounds are based on a 20, 40, 60, 80, and 100 
  percent diversion, respectively, to the U.S. market of the total expected increase in Argentine citrus exports
  to all countries. Between 1985 and 1996, Argentine citrus exports increased by an average of 6.92 percent per 
  year. Using the 1996 export of 717.8 million pound as a baseline number, the expected increase in Argentine   
  citrus exports would be 49.67 (=717.8 x 0.0692) million pounds, which we have rounded to 50 million pounds. We
  assume a certain proportion of this increase would be directed to the newly accessible U.S. market.           
\2\ Decrease in quantity may be due to diversion of fresh citrus fruit to the processing sector as the price of 
  fresh citrus fruit declines.                                                                                  

    Table 1 includes the potential percent change in price, the percent 
change in quantity, the resultant producer losses, consumer benefits, 
and net benefits. Price decreases as the volume of imported citrus 
fruits increases. For example, for a price elasticity of demand -0.233, 
given an import level of 10 million pounds of Argentine citrus entering 
the U.S. market, the expected price decrease would be 0.29 percent. 
(Although there are estimates for oranges and grapefruit, aggregate 
elasticity estimates for citrus fruit supply and demand were not 
readily available. The data used for estimating these elasticities and 
for assessing the impact were obtained from various sources. Citrus 
production and export data were obtained from various issues of the FAO 
``Production and Trade

[[Page 43123]]

Yearbook,'' from the FAS ``Annual Citrus Report,'' and from Argentine 
Embassy sources. U.S. production and trade data were obtained from 
various issues of ``Fruit and Tree Nuts: Situation and Outlook 
Yearbook.'' Consumer price index, U.S. gross domestic product, and 
producer price index data were obtained from the August 1997 issue of 
``Survey of Current Business.'' The elasticity of supply and demand are 
estimated using a simple log-log model and are 0.284 and -0.233, 
respectively.)
    In the scenario in which 10 million pounds of citrus would be 
exported from Argentina to the United States, U.S. producers would lose 
about $7.347 million while U.S. consumers would gain about $7.353 
million. The net benefit in this scenario would be about $6,000. At the 
opposite extreme, an export level of 50 million pounds (i.e., all of 
the anticipated increase in Argentine citrus exports being sent to the 
U.S. market rather than to other countries) would result in a price 
decrease of about 1.46 percent. Producers would lose about $36.674 
million and consumers would gain about $36.813 million, resulting in 
net benefit of about $139,000. Additionally, there would be a direct 
relationship between producer losses and consumer gains on the one hand 
and the quantity of imports on the other hand. Therefore, the larger 
the share of imports from Argentina, relative to U.S. domestic supply, 
the larger the U.S. producer losses and the larger the U.S. consumer 
gains. In all cases, consumer gains would slightly outweigh grower 
losses.
    The only significant alternative to this proposed rule would be to 
make no changes in the regulations, i.e., to continue to prohibit the 
importation of grapefruit, lemons, and oranges from Argentina. We have 
rejected that alternative because we believe that Argentina has 
demonstrated that the citrus-growing areas of the States of Catamarca, 
Jujuy, Salta, and Tucuman are free from citrus canker and because we 
believe that the systems approach offered by Argentina to prevent the 
introduction of other plant pests reduces the risks posed by the 
importation of grapefruit, lemons, and oranges to an negligible level. 
Maintaining a prohibition on the importation of grapefruit, lemons, and 
oranges from the Argentine States of Catamarca, Jujuy, Salta, and 
Tucuman in light of those State's demonstrated freedom from citrus 
canker 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 
citrus-growing areas of Catamarca, Jujuy, Salta, and Tucuman free from 
citrus canker and allowing the importation of grapefruit, lemons, and 
oranges from those States subject to certain conditions would likely 
have a beneficial effect on international trade in general, and trade 
between the United States and Argentina 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 would allow the importation of grapefruit, 
lemons, and oranges from Argentina under certain conditions. If this 
proposed rule is adopted, State and local laws and regulations 
regarding grapefruit, lemons, and oranges imported under this rule 
would be preempted while the fruit is in foreign commerce. Grapefruit, 
lemons, and oranges are generally imported for immediate distribution 
and sale to the consuming public, and would 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. If this proposed rule is adopted, no retroactive effect would be 
given to this rule, and this rule would not require administrative 
proceedings 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. 97-110-1. 
Please send a copy of your comments to: (1) Docket No. 97-110-1, 
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 effect if OMB receives it within 30 days of publication of this 
proposed rule.
    This proposed rule would amend the citrus fruit regulations by 
recognizing a citrus-growing area within Argentina as being free from 
citrus canker and would amend the fruits and vegetables regulations to 
allow the importation of grapefruit, lemons, and oranges from the 
citrus canker-free area of Argentina under certain conditions. These 
proposed changes would provide for the importation into the United 
States of grapefruit, lemons, and oranges from Argentina under 
conditions designed to prevent the introduction into the United States 
of two other diseases of citrus, sweet orange scab and citrus black 
spot, and other plant pests.
    The proposed program for the importation of grapefruit, lemons, and 
oranges from Argentina would require the use of import permits, 
phytosanitary certificates, and other information-gathering documents 
to help ensure that the fruit has been grown and handled in accordance 
with the conditions set forth in the regulations.
    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 .7009 hours per response.
    Respondents: Argentine plant health authorities, growers/exporters 
of citrus in the citrus canker-free area of Argentina.
    Estimated annual number of respondents: 470.
    Estimated annual number of responses per respondent: 2.1702.
    Estimated annual number of responses: 1,020.

[[Page 43124]]

    Estimated total annual burden on respondents: 715. (Due to 
rounding, the total annual burden hours may not equal the product of 
the annual number of responses multiplied by the average reporting 
burden per response.)
    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

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, we propose to amend title 7, chapter III, of the Code 
of Federal Regulations as follows:

PART 300--INCORPORATION BY REFERENCE

    1. The authority citation for part 300 would continue to read as 
follows:

    Authority: 7 U.S.C. 150ee, 154, 161, 162 and 167; 7 CFR 2.22, 
2.80, and 371.2(c).

    2. In Sec. 300.1, paragraph (a), the introductory text would be 
revised to read as follows:


Sec. 300.1  Materials incorporated by reference; availability.

    (a) Plant Protection and Quarantine Treatment Manual. The Plant 
Protection and Quarantine Treatment Manual, which was reprinted 
November 30, 1992, and includes all revisions through [date], 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 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).

Sec. 319.28  [Amended]

    4. In Subpart--Citrus Fruit, Sec. 319.28 would be amended as 
follows:
    a. In paragraph (a)(1), by adding the words ``Argentina (except for 
the States of Catamarca, Jujuy, Salta, and Tucuman, which are 
considered free of citrus canker),'' immediately after the word 
``Seychelles,''.
    b. In paragraph (a)(2), by adding the words ``(except as provided 
by Sec. 319.56-2f)'' immediately after the word ``Argentina''.
    c. In paragraph (a)(3), by adding the words ``(except for the 
States of Catamarca, Jujuy, Salta, and Tucuman, which are considered 
free of Cancrosis B)'' immediately after the word ``Argentina''.
    5. In Subpart--Fruits and Vegetables, a new Sec. 319.56-2f would be 
added to read as follows:


Sec. 319.56-2f  Administrative instructions governing importation of 
grapefruit, lemons, and oranges from Argentina.

    Fresh grapefruit, lemons, and oranges may be imported from 
Argentina into the United States only under permit and only in 
accordance with this section and all other applicable requirements of 
this subpart.
    (a) Origin requirement. The grapefruit, lemons, or oranges must 
have been grown in a grove located in a region of Argentina that has 
been determined to be free from citrus canker. The following regions in 
Argentina have been determined to be free from citrus canker: The 
States of Catamarca, Jujuy, Salta, and Tucuman.
    (b) Grove requirements. The grapefruit, lemons, or oranges must 
have been grown in a grove that meets the following conditions:
    (1) The grove must be registered with the citrus fruit export 
program of the Servicio Nacional de Sanidad y Calidad Agroalimentaria 
(SENASA).
    (2) The grove must be surrounded by a 150-meter-wide buffer area. 
No citrus fruit grown in the buffer area may be offered for importation 
into the United States.
    (3) Any new citrus planting stock used in the grove must meet one 
of the following requirements:
    (i) The citrus planting stock originated from within a State listed 
in paragraph (a) of this section; or
    (ii) The citrus planting stock was obtained from a SENASA-approved 
citrus stock propagation center.
    (4) All fallen fruit, leaves, and branches must be removed from the 
ground in the grove and the buffer area before the trees in the grove 
blossom. The grove and buffer area must be inspected by SENASA before 
blossom to verify that these sanitation measures have been 
accomplished.
    (5) The grove and buffer area must be treated at least twice during 
the growing season with an oil-copper oxychloride spray. The timing of 
each treatment shall be determined by SENASA based on its monitoring of 
climatic data, fruit susceptibility, and the presence of disease 
inoculum. The application of treatments shall be monitored by SENASA to 
verify proper application.
    (6) The grove and buffer area must be surveyed by SENASA 20 days 
before the grapefruit, lemons, or oranges are harvested to verify the 
grove's freedom from citrus black spot (Guignardia citricarpa) and 
sweet orange scab (Elsinoe australis). The grove's freedom from citrus 
black spot and sweet orange scab shall be verified through:
    (i) Visual inspection of the grove and buffer area; and
    (ii) Laboratory examination of 320 fruits taken from each 200 
hectares according to SENASA's randomized sampling protocol.
    (c) After harvest. After harvest, the grapefruit, oranges, or 
lemons must be handled in accordance with the following conditions:
    (1) The fruit must be moved from the grove to the packinghouse in 
field boxes or containers of field boxes that are marked to show the 
SENASA registration number of the grove in which they were grown. The 
identity of the origin of the fruit must be maintained.
    (2) During the time that a packinghouse is used to prepare 
grapefruit, lemons, or oranges for export to the United States, the 
packinghouse may accept fruit only from groves that meet the 
requirements of paragraph (b) of this section.
    (3) After arriving at the packinghouse, the fruit must be held at 
room temperature for 4 days to allow for symptom expression of citrus 
black spot in the event that latent infection exists in the fruit.
    (4) After the 4-day holding period, the fruit must be inspected by 
SENASA to verify its freedom from citrus black spot and sweet orange 
scab. The fruit must then be chemically treated as follows:
    (i) Immersion in sodium hypochlorite (chlorine) at a concentration 
of 200 parts per million;
    (ii) Immersion in orthophenilphenate of sodium;
    (iii) Spraying with imidazole; and
    (iv) Application of 2-4 thiazalil benzimidazole and wax.
    (5) Before packing, the treated fruit must again be inspected by 
SENASA to verify its freedom from citrus black spot and sweet orange 
scab.
    (6) The fruit must be packed in clean, new boxes that are marked 
with the SENASA registration number of the grove in which the fruit was 
grown.
    (d) Phytosanitary certificate. Grapefruit, lemons, and oranges 
offered for entry into the United States from

[[Page 43125]]

Argentina must be accompanied by a phytosanitary certificate issued by 
SENASA that states the grapefruit, lemons, or oranges were produced and 
handled in accordance with the requirements of paragraphs (a), (b), and 
(c) of this section, and that the grapefruit, lemons, or oranges are 
apparently free from citrus black spot and sweet orange scab.
    (e) Cold treatment. Due to the presence in Argentina of 
Mediterranean fruit fly (Medfly)(Ceratitis capitata) and fruit flies of 
the genus Anastrepha, grapefruit, lemons (except smooth-skinned 
lemons), and oranges offered for entry from Argentina must be treated 
with an authorized cold treatment listed in the Plant Protection and 
Quarantine Treatment Manual, which is incorporated by reference at 
Sec. 300.1 of this chapter. The cold treatment must be conducted in 
accordance with the requirements of Sec. 319.56-2d of this subpart.
    (f) Disease detection. If, during the course of any inspection or 
testing required by this section or Sec. 319.56-6 of this subpart, 
citrus black spot or sweet orange scab is detected on any grapefruit, 
lemons, or oranges, the grove in which the fruit was grown or is being 
grown shall be removed from the SENASA citrus export program for the 
remainder of that year's growing and harvest season, and the fruit 
harvested from that grove may not be imported into the United States 
from the time of detection through the remainder of that shipping 
season.

    Done in Washington, DC, this 6th day of August 1998.
Joan M. Arnoldi,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 98-21595 Filed 8-11-98; 8:45 am]
BILLING CODE 3410-34-P