[Federal Register Volume 66, Number 75 (Wednesday, April 18, 2001)]
[Proposed Rules]
[Pages 19892-19898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9628]


 ========================================================================
 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. 66, No. 75 / Wednesday, April 18, 2001 / 
Proposed Rules  

[[Page 19892]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 319

[Docket No. 99-099-1]
RIN 0579-AB17


Importation of Unshu Oranges

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: We are proposing to amend the regulations governing the 
importation of citrus fruit to allow, under certain conditions, Unshu 
oranges grown on Kyushu Island, Japan, to be imported into noncitrus-
producing areas of the United States. We are also proposing to amend 
the regulations for importing Unshu oranges from Honshu Island, Japan, 
by requiring fumigation using methyl bromide prior to exportation and 
by allowing the fruit to be distributed to additional areas of the 
United States, including citrus-producing areas. In addition, we are 
proposing to remove the requirement for individually wrapping Unshu 
oranges imported from Japan or the Republic of Korea. These actions 
would relieve restrictions on the importation into and distribution 
within the United States of Unshu oranges without presenting a 
significant risk of introducing citrus canker or other diseases or 
pests of plants.

DATES: We invite you to comment on this docket. We will consider all 
comments that we receive by June 18, 2001.

ADDRESSES: Please send your comment and three copies to: Docket No. 99-
099-1, Regulatory Analysis and Development, PPD, APHIS, Suite 3C03, 
4700 River Road, Unit 118, Riverdale, MD 20737-1238. Please state that 
your comment refers to Docket No. 99-099-1.
    You may read any comments that we receive on this docket in our 
reading room. The reading room is located in room 1141 of the USDA 
South Building, 14th Street and Independence Avenue, SW., Washington, 
DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through 
Friday, except holidays. To be sure someone is there to help you, 
please call (202) 690-2817 before coming.
    APHIS documents published in the Federal Register, and related 
information, including the names of organizations and individuals who 
have commented on APHIS dockets, are available on the Internet at 
http://www.aphis.usda.gov/ppd/rad/webrepor.html.

FOR FURTHER INFORMATION CONTACT: Dr. Inder P. Gadh, Import Specialist, 
Phytosanitary Issues Management Team, PPQ, APHIS, 4700 River Road Unit 
140, Riverdale, MD 20737-1236; (301) 734-6799.

SUPPLEMENTARY INFORMATION:

Background

    Citrus canker is a disease which affects citrus, and is caused by 
the infectious bacterium Xanthomonas campestris pv. citri (Hasse) Dye. 
The strain of citrus canker that occurs in Japan infects the twigs, 
leaves, and fruit of a wide spectrum of Citrus species.
    Currently, the regulations in 7 CFR 319.28 (referred to below as 
the regulations) prohibit the importation of citrus from Eastern and 
Southeastern Asia, Japan, Brazil, Paraguay, and other designated areas, 
with certain exceptions. One exception is for Unshu oranges (Citrus 
reticulata Blanco var. unshu, also known as Satsuma) grown in citrus 
canker-free areas in Japan or on Cheju Island, Republic of Korea. After 
meeting certain growing, packing, and inspection requirements, Unshu 
oranges may be imported from these areas of Japan and Korea into any 
area of the United States except American Samoa, Arizona, California, 
Florida, Louisiana, the Northern Mariana Islands, Puerto Rico, Texas, 
and the U.S. Virgin Islands. Also, under the regulations in 7 CFR 
301.11, the Unshu oranges may not be moved interstate from any State 
into which they are imported into, or through any State, territory, or 
possession where importation is prohibited under Sec. 319.28.
    Unshu oranges eligible for importation into the United States are 
grown under a system of safeguards in citrus canker-free areas in Japan 
and Korea. Unshu oranges are known to be resistant to citrus canker, 
and the system of safeguards established in the regulations for Unshu 
oranges approximately 30 years ago has proven effective, as evidenced 
by the record of citrus canker-free imports.
    In response to a request from the Japanese Government's Ministry of 
Agriculture, Forestry and Fisheries, we are considering allowing Unshu 
oranges from Honshu Island, Japan, to be imported into additional areas 
of the United States provided the oranges are first treated with a 
specified dosage of methyl bromide to ensure their freedom from plant 
pests. Currently, the only approved citrus-canker free export areas for 
Unshu oranges in Japan are on Honshu Island. In addition, also at 
Japan's request, we are considering allowing Unshu oranges to be 
imported from additional citrus-canker free export areas on Kyushu 
Island, Japan. These proposed changes to the regulations are discussed 
below in more detail.

Pest Risk Analysis

    Upon receiving the request from the Government of Japan to change 
our regulations, the Animal and Plant Health Inspection Service 
completed a pest risk analysis entitled ``Importation of Japanese Unshu 
Orange Fruit into Citrus Producing States'' in March 1995.\1\ The pest 
risk analysis evaluated the risk of importing Unshu oranges from Japan 
into the United States. The analysis evaluated the risks associated 
with 13 organisms that meet the definition of a quarantine pest as set 
forth by the United Nation's Food and Agriculture Organization. A 
quarantine pest is defined as ``a pest of potential economic importance 
to the area endangered thereby and not yet present there, or present 
but not widely distributed and being officially controlled.'' Two 
diseases (citrus canker and citrus greening disease) and 11 insects (3 
mites, 3 mealybugs, 2 scale insects, 2 disease vectors, and citrus 
fruit fly) are present in Japan and are considered quarantine pests by 
the United States. However, in Japan, the

[[Page 19893]]

islands of Shikoku, Honshu, and certain areas of Kyushu are free of the 
citrus fruit fly.
---------------------------------------------------------------------------

    \1\ For a copy of the pest risk analysis, contact the individual 
listed under FOR FURTHER INFORMATION CONTACT.
---------------------------------------------------------------------------

    The pest risk analysis evaluated the climate and host interaction, 
host range, dispersal potential, economic impact, and environmental 
impact associated with these pests. The analysis confirmed that the 
established safeguards for Unshu oranges from Japan are effective. The 
estimated risk that Unshu oranges imported into commercial citrus-
producing States of the United States would provide inoculum sufficient 
to infect suitable host material with citrus canker is nearly zero. The 
probable risk of establishment of the two disease vectors--one, a 
psyllid, carries the bacterium for citrus greening disease; the other, 
an aphid, carries citrus tristeza virus and other viruses--is only 
slightly higher than the risk of establishment of citrus canker. 
However, these disease vectors are not typically associated with 
imported fruit from Honshu Island (which, as noted above, is the 
location of the only currently approved citrus-canker free export areas 
for Unshu oranges from Japan), primarily because such fruit is 
subjected to surface treatment with chlorine solution and voluntary 
treatment with methyl bromide fumigation. While citrus greening 
disease, a disease of quarantine significance, is known to occur in 
Okinawa Prefecture, this area is geographically separated from the 
citrus export areas in Japan. In addition, measures are in place to 
prevent movement of the psyllid that carries citrus greening disease 
from Okinawa Prefecture.
    The highest risk pests appear to be mealybugs, followed by mites 
and armored scale insects. The recommendation for phytosanitary 
measures to minimize the risk from these pests, as well as to address 
the risk presented by the disease vectors identified in the pest risk 
analysis, is fumigation with methyl bromide. Currently, producers on 
Honshu Island voluntarily fumigate their fruit with methyl bromide to 
control those pests. However, because our proposal, if adopted, would 
allow Unshu oranges from Honshu Island to be distributed in commercial 
citrus-producing States, we are also setting forth a mandatory 
requirement for postharvest treatment of fruit from Honshu Island with 
methyl bromide in accordance with APHIS' fumigation standards as an 
additional safeguarding measure. Mandatory treatment is necessary 
because the mealybugs, mites, and scale insects identified in the risk 
analysis are much more likely to become established in climates where 
citrus is grown than in climates where citrus is not grown. In 
noncitrus-producing areas, these pests, if introduced, would likely not 
survive due to the effects of climate and a lack of host material.

Allow Importation of Unshu Oranges From Kyushu Island, Japan

    As a result of our pest risk analysis, we are proposing to amend 
the regulations to allow the importation and interstate movement, under 
restrictions, of Unshu oranges grown in citrus-canker free areas on 
Kyushu Island, Japan.
    The growing areas that we are proposing to add are located in the 
following four prefectures on Kyushu Island: Fukuoka, Kumanmoto, 
Nagasaki, and Saga. The citrus fruit fly (Bactrocera tsuneonis Miyake) 
is the only additional quarantine pest found on Kyushu Island that is 
not found in the currently certified growing areas on Honshu Island. 
However, the citrus fruit fly is known to occur only in prefectures of 
Kyushu Island that are east of the central mountains of the island. 
Fukuoka, Kumanmoto, Nagasaki, and Saga are west of the central mountain 
range. Trapping data and fruit cutting data show that citrus fruit fly 
has not been detected in these four prefectures for a number of years 
and is therefore not likely to occur there.
    Nevertheless, as a further mitigatory measure, we propose to limit 
the entry and distribution of Unshu oranges from these new growing 
areas to areas of the United States that are not commercial citrus-
producing areas. In addition to the current safeguards specified in the 
regulations, we would require trapping for the citrus fruit fly in 
Unshu orange export areas and buffer zones on Kyushu Island, Japan. We 
would prescribe the requirements for the trapping in coordination with 
the Japanese Government's Ministry of Agriculture, Forestry and 
Fisheries. In the event that fruit flies are detected, shipping would 
be suspended from the export area until negative trapping showed that 
the problem had been resolved.
    We are not proposing that Unshu oranges from Kyushu Island be 
subjected to mandatory postharvest treatment with methyl bromide as we 
are for Unshu oranges from Honshu Island. We do not believe fumigation 
is necessary or justified in this situation because Unshu oranges from 
Kyushu Island will not be distributed in citrus-producing States (where 
the climate and available host material could support the establishment 
of mealybugs, mites, and armored scale insects).
    To qualify for importation into the United States, Unshu oranges 
from Kyushu Island, Japan, would have to meet the following 
requirements:
    1. They must be grown in and packed in isolated, canker-free export 
areas established by the Ministry of Agriculture, Forestry and 
Fisheries, and where only Unshu orange trees are grown. These areas 
must be kept free of all citrus other than the propagative material of 
Unshu oranges. The isolated, canker-free areas must, in turn, be 
surrounded by a 400-meter wide, disease-free buffer zone in which only 
certain varieties of citrus may be grown. Besides Unshu oranges (Citrus 
reticulata Blanco var. unshu, Swingle [C. unshiu Marcovitch, Tanaka]), 
these varieties are: Buntan Hirado (Citrus grandis); Buntan Vietnam (C. 
grandis); Hassaku (C. hassaku); Hyuganatsu (C. tamurana); Kinkan 
(Fortunella spp. non Fortunella hindsii); Kiyomi tangor (hybrid); 
Orange Hyuga (C. tamurana); Ponkan (C. reticulata); and Yuzu (C. 
junos).
    2. Japanese and U.S. plant protection officials must jointly 
inspect the canker-free export areas and the buffer zones to ensure 
that these areas are free of citrus canker and prohibited plant 
material, and these officials must also jointly inspect Unshu oranges 
in the groves prior to and during harvest in the packinghouses during 
packing operations.
    3. Before packing, the Unshu oranges must be given a U.S. 
Department of Agriculture (USDA) prescribed surface sterilization with 
a bleach and water solution.
    4. The boxes in which the Unshu oranges are packed must include a 
stamped or printed statement specifying the States into which the Unshu 
oranges may be imported and from which they are prohibited removal 
under a Federal plant quarantine.
    5. The Unshu oranges must also be accompanied by a certificate from 
the Japanese plant protection service certifying that the fruit is 
apparently free of citrus canker.
    6. In Unshu orange export areas and buffer zones on Kyushu Island, 
trapping for the citrus fruit fly must be conducted as prescribed by 
the Japanese Government's Ministry of Agriculture, Forestry and 
Fisheries and USDA. If fruit flies are detected, then shipping will be 
suspended from the export area until negative trapping shows the 
problem has been resolved.
    7. Unshu oranges from the prefectures of Fukuoka, Kumanmoto, 
Nagasaki, and Saga may be imported into any area of the United States 
except American Samoa, Arizona, California, Florida, Hawaii, Louisiana, 
the Northern

[[Page 19894]]

Mariana Islands, Puerto Rico, Texas, and the U.S. Virgin Islands. We 
would require the Unshu oranges to be imported only through ports of 
entry with USDA plant inspection stations. These ports, which are 
equipped with special inspection and treatment facilities, are 
indicated with an asterisk in Sec. 319.37-14 of the regulations. Also, 
under 7 CFR 301.11, the Unshu oranges would not be allowed to be moved 
interstate from any State into which they are imported into or through 
any State, territory, or possession where importation is prohibited 
under Sec. 319.28. These distribution requirements are the same as 
those now in place for Unshu oranges from Honshu Island, Japan, and 
Cheju Island, Republic of Korea.

Unshu Oranges from Honshu Island, Japan

    As noted, all Unshu oranges that are currently imported into the 
United States from Japan are grown on Honshu Island. As explained 
previously, the highest risks from the importation of Unshu oranges are 
mealybugs, mites, and scale insects. Also, as explained previously, 
methyl bromide fumigation has been used by producers on Honshu Island, 
on a voluntary basis, to minimize the risks associated with these 
pests.
    As a result of our pest risk analysis, we are proposing to change 
the entry requirements for Unshu oranges produced in the currently 
certified production areas in Japan, which are all located on Honshu 
Island. We propose to (1) require a mandatory postharvest fumigation 
with methyl bromide and (2), as requested by Japan, expand distribution 
to all parts of the United States except for American Samoa, the 
Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
    Because our proposal, if finalized, would allow Unshu oranges to be 
imported into areas of the United States where citrus is commercially 
produced, we are requiring that each shipment of oranges from Honshu 
Island, Japan, be fumigated with methyl bromide as an additional 
protective measure. Japan's voluntary methyl bromide practices have 
been effective overall in eliminating the mites and scale insects 
identified in the pest risk analysis, as well as the two disease 
vectors. However, the dosage schedule used in the voluntary program 
(2.5 lb. per 1000 cu. ft. for 2 hours at 59  deg.F or above) was not 
supported by data to be sufficient to kill mealybugs. The fumigation 
schedule we are proposing for the Unshu oranges both after harvest and 
prior to export, at the rate of 3 lbs. per 1000 cu. ft. for 2 hours at 
59  deg.F--is an APHIS-approved treatment determined to be sufficient 
to kill mealybugs, mites, scale insects, and any other surface pests of 
concern. This fumigation schedule would further mitigate any risk that 
may be involved in allowing Unshu oranges from Honshu Island, Japan, to 
be imported directly into citrus-producing areas.
    These actions would allow Unshu oranges to be moved into additional 
areas of the United States without increasing the risk of pest 
introduction. As mentioned previously, we are proposing these changes 
at the request of Japan's Ministry of Agriculture, Forestry and 
Fisheries, and to fulfill our obligations under international trade 
agreements. Under the World Trade Organization's Agreement on Sanitary 
and Phytosanitary Measures, the United States is obliged to use sound, 
scientific principles in considering such requests, and to use health 
requirements only to the extent necessary to protect the health of U.S. 
agriculture and to reduce any pest and disease risk to negligible 
levels.

Use of Methyl Bromide

    The United States and Japan are Parties to the Montreal Protocol on 
Substances that Deplete the Ozone Layer (Protocol), an international 
treaty designed to preserve the stratospheric ozone layer by governing 
the production and use of ozone-depleting chemicals like methyl 
bromide. Methyl bromide is a broad spectrum pesticide used to control 
insect pests, nematodes, weeds, pathogens, and rodents, and it is in 
widespread use as a fumigant. The Protocol provides for a phaseout of 
methyl bromide in developed countries by the year 2005 and in 
developing countries, including Mexico, by the year 2015. However, the 
Parties' methyl bromide phaseout obligations do not apply to quantities 
of the substance used for quarantine and preshipment purposes.
    The Agriculture, Rural Development, Food and Drug Administration, 
and Related Agencies Appropriations Act of 1999 (Act) amended the Clean 
Air Act (CAA) and directed the Environmental Protection Agency (EPA) to 
promulgate new rules to reduce and terminate the production, 
importation, and consumption of methyl bromide in accordance with the 
phaseout schedule of the Montreal Protocol. (Previously, on December 
10, 1993, EPA had published a final rule in the Federal Register (58 FR 
65018-65082) that froze methyl bromide production in the United States 
at 1991 levels and required the phasing out of domestic use of methyl 
bromide by 2001.) Consistent with the Protocol, the Act also amended 
the CAA by providing a quarantine-use exemption for the production, 
importation, and use of methyl bromide to fumigate commodities entering 
or leaving the United States to comply with APHIS regulations and for 
other legitimate quarantine uses. The World Trade Organization's 
Agreement on Sanitary and Phytosanitary Measures--of which Japan and 
the United States are signatories--also requires that member countries 
impose no greater restrictions, including the use of commodity 
treatments, than are necessary to achieve phytosanitary protection. 
Such protective measures must also be used in a manner that minimizes 
negative effects on trade.
    To ensure that the United States fulfills its obligations under the 
CAA and the Protocol, EPA is nearing completion on amendments to its 
regulations that would revise the accelerated phaseout regulations and 
conform the U.S. methyl bromide phasedown schedule with the Protocol's 
schedule for industrialized nations. EPA has expressed assurances that 
a final rule on this issue will be published in the Federal Register in 
the near future. EPA has also indicated that it is preparing to publish 
a proposed rule regarding the process for handling and documenting 
exemptions for the production and importation of quantities of methyl 
bromide to be used for quarantine and preshipment purposes.
    Because the Montreal Protocol exempts quarantine uses of methyl 
bromide, our proposal assumes the continued availability of methyl 
bromide for use as a fumigant for the foreseeable future. Nevertheless, 
USDA takes very seriously its commitment to work toward the development 
of commodity treatment alternatives to methyl bromide. Accordingly, 
APHIS is actively assessing the effectiveness and environmental 
acceptability of other tools--such as hot water treatment, thermal 
treatments (hot air, vapor heat, and cold treatment), and irradiation--
that may economically manage the pests currently controlled with methyl 
bromide.

Remove Marked Wrapping Requirement for Individual Unshu Oranges

    The principal method of maintaining the identity of imported Unshu 
oranges, under present regulations, is by stamping or printing a 
statement on the individual fruit wrapper and also on each box 
specifying the States into which the Unshu oranges may be imported and 
from which they are

[[Page 19895]]

prohibited removal. Our experience with the importation of Unshu 
oranges shows that the fruit is marketed and retailed by the box. We 
anticipate that marketing by the box will continue for future sales. 
Therefore, we are proposing to remove the current requirement for the 
wrapper on each fruit. It appears that the deletion of the individual 
fruit wrapper marking requirement would not increase the risk of 
introducing citrus canker or any other plant disease or pest into the 
United States nor prevent the effective enforcement of the restrictions 
on interstate distribution of the fruit within the United States. We 
are proposing to remove the requirement for individual fruit wrappers 
because marking the boxes is considered sufficient to safeguard 
distribution, and marking boxes will remain a requirement.
    These safeguards would be adequate to ensure that the Unshu oranges 
imported into the United States from Honshu Island and Kyushu Island, 
Japan, and Cheju Island, Republic of Korea, would not disseminate 
citrus canker or other plant pests in the United States.

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.
    The economic analysis for the changes proposed in this document is 
set forth below. It provides a cost-benefit analysis as required by 
Executive Order 12866 and an analysis of the potential economic effects 
on small entities as required by the Regulatory Flexibility Act.
    In the data we use to support this analysis, the terms 
``tangerine'' and ``mandarin'' are generally interchangeable. Both 
refer to varieties of Citrus reticulata. For example, NASS production 
data are aggregated under ``tangerine,'' while Bureau of Census trade 
data use the term ``mandarin.'' Because of its familiarity, we use only 
the term ``tangerine'' in this analysis.
    Unshu oranges (Citrus reticulata var. unshu) are a variety of 
tangerine currently allowed to be imported into the United States from 
citrus canker-free production areas of Japan and Korea. They may be 
imported into any part of the United States except for commercial 
citrus-producing areas. This proposed rule would change requirements 
for the importation of Unshu oranges from Honshu Island, where all such 
shipments from Japan originate at present, and allow importations from 
four prefectures on Kyushu Island. Unshu oranges imported from Honshu 
Island would no longer be prohibited from being distributed in five 
citrus-producing States (Arizona, California, Florida, Louisiana, and 
Texas), and postharvest treatment with methyl bromide would be 
mandatory. Unshu oranges from Kyushu Island would be prohibited from 
being distributed in citrus-producing States, American Samoa, the 
Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands, and 
methyl bromide treatment would not be mandatory. The proposed rule 
would also remove the current requirement that imported Unshu oranges 
be individually wrapped, regardless of whether they come from Japan or 
Korea.
    Since Unshu oranges are not grown in the United States, entities 
that might be affected by the proposed changes in import regulations 
would be producers of other tangerine varieties, assuming Unshu oranges 
can be considered a substitute fruit. Annual receipts of $500,000 or 
less is the small-entity criterion set by the Small Business 
Administration for establishments primarily engaged in the production 
of citrus fruits. Most tangerine producers in the United States are 
small entities. Although the 1997 Census of Agriculture excluded 
information on California's ``honey tangerine'' growers to avoid 
disclosing data for individual farms, the information that is available 
for ``other tangerine'' growers in California and other States 
indicates that most operations are small.
    Quantities of Unshu oranges imported from Japan and Korea, 1994 to 
1999, are shown in Table 1. Unshu orange imports from Japan between 
1994 and 1999 averaged 240 metric tons per year.

Table 1.--Unshu Orange Imports by the United States From Japan and Korea
------------------------------------------------------------------------
                                                Japan    Korea    Total
------------------------------------------------------------------------
                      Metric tons of Unshu oranges
------------------------------------------------------------------------
1994.........................................      324               324
1995.........................................      232       43      275
1996.........................................      165      214      379
1997.........................................      144      887    1,031
1998.........................................      224       31      255
1999.........................................      349      377     726
------------------------------------------------------------------------
 Source: Ministry of Agriculture, Forestry and Fisheries, Japan.

    Japan's Ministry of Agriculture, Forestry and Fisheries is unable 
to project future Unshu orange exports to the United States that may 
result if this proposed rule is adopted. For the purposes of this 
analysis, therefore, we estimated that the 1994-1999 average would 
double, to 480 metric tons per year. Adding to this amount the average 
of yearly imports from Korea shown in Table 1, namely, 310 metric tons, 
would mean 790 metric tons of Unshu oranges imported annually. The 
estimated increase in imports from Japan may be too high, but we do not 
have information that would allow a more factually based projection. A 
high estimate of the potential increase in Japan's Unshu orange exports 
to the United States lends confidence to our conclusion regarding the 
potential economic effect on U.S. tangerine producers.
    U.S. tangerine production, imports, and domestic supplies are shown 
in Table 2. U.S. net imports were less than 4 percent of the domestic 
supply in 1997-98. In addition, as Table 2 shows, the United States 
shifted from being a net exporter from 1994 through 1996 to being a net 
importer of tangerines beginning in 1996, reflecting increased demand 
for imported varieties. Annual exports from 1994 through 1998 were 
fairly constant, about 33,400 metric tons. Imports, however, increased 
sharply, from about 20,000 metric tons in 1994-95, to about 42,800 
metric tons in 1997-98.

                            Table 2.--U.S. Fresh Tangerine Production and Importation
                                                 [In metric tons]
----------------------------------------------------------------------------------------------------------------
                                                                       U.S.                          Domestic
                                                                   Production 1   Net  Imports 2     Supply 3
----------------------------------------------------------------------------------------------------------------
1994-95.........................................................         190,046         -13,794         176,251
1995-96.........................................................         220,985          -9,477         211,508
1996-97.........................................................         255,020           1,742         256,762

[[Page 19896]]

 
1997-98.........................................................         220,878           8,848        229,726
----------------------------------------------------------------------------------------------------------------
1 Excludes processed fruit. Source: Production data from NASS, Agricultural Statistics, Tables 5-23 and 5-24.
2 ``Net imports'' are imports minus exports. Calendar year data arranged to correspond to NASS cross-year
  production data. Source: Net import data: World Trade Atlas, Global Trade Information Services, Inc., based on
  data from U.S. Department of Commerce, Bureau of the Census.
3 U.S. production (excluding processed fruit) plus net imports.

    Comparing Unshu orange imports shown in Table 1 with U.S. tangerine 
supplies shown in Table 2, it is apparent that Unshu orange imports 
comprise a small portion of total supply. From 1994-95 to 1997-98, they 
averaged only 0.23 percent of U.S. tangerine supply, and when only the 
fruit imported from Japan is considered, 0.11 percent. The hypothesized 
import level, 790 metric tons a year, would represent only 0.36 percent 
of the average annual tangerine domestic supply over this 4-year 
period. This very small percentage suggests that any effect of Unshu 
orange imports, as a substitute fruit, on the sales and prices of other 
tangerine varieties as a whole would not be significant.
    One seedless variety that is similar to the Unshu orange is the 
Satsuma. In the United States, it is commercially grown only in 
California, where there were 1,368 acres of bearing and 753 acres of 
nonbearing (young) trees as of May 1999, according to the California 
Department of Food and Agriculture. Satsuma production statistics are 
not recorded at the national or State level. Nearly all commercial 
production takes place in Fresno, Kern, and Tulare counties. Of these, 
only Fresno County maintains information specific to Satsumas. In 1997-
98, 2,332 metric tons of Satsuma were produced on 470 acres in Fresno 
County. Based on those production levels, we estimate that the entire 
area of California planted with Satsuma annually produces 6,785 metric 
tons of fruit and could potentially produce 10,520 metric tons of 
fruit. The hypothesized quantity of Unshu orange imports, 790 metric 
tons, represents 11.6 and 7.5 percent, respectively, of the estimated 
California Satsuma production levels.
    Direct access to California markets would allow Unshu orange 
imports from Honshu Island to compete more directly for California's 
Satsuma consumers. However, prices of the two varieties are not 
competitive. Wholesale prices for Satsuma in 1997-98 were about 40 to 
50 cents per pound. Wholesale prices for Unshu oranges for the past 6 
to 7 years have been around $1.40 to $1.50 per pound ($45 to $48 per 
32-pound container). One company has been the sole importer of Unshu 
oranges from Japan for more than 10 years. Information from U.S. 
Department of Commerce, Bureau of the Census, shows that the average 
price of all tangerines imported by the United States from 1994 to 1998 
was more in line with Satsuma prices, at about 47 cents per pound. A 
price difference of this magnitude implies distinct markets; it is 
highly unlikely that Satsuma customers would be willing to pay a 
threefold premium for a substitute variety. There may be latent demand 
for Unshu oranges in the United States, but the extent to which this 
demand draws away consumers of Satsuma and other domestic tangerine 
varieties would be marginal. More likely, Unshu orange sales in citrus-
producing States and elsewhere would be to an expanding base of niche 
customers willing to pay the premium price for Unshu oranges.
    The effect on the demand for other Citrus reticulata varieties from 
increased levels of Unshu orange imports is expected to be negligible. 
Even when the analysis focuses more narrowly on a similar tangerine 
variety, the Satsuma, the higher prices paid for Unshu oranges strongly 
indicate a distinct market, with any effect on Satsuma sales likely to 
be insignificant.
    An increase in the importation of Unshu oranges is expected, given 
the proposed addition of Unshu oranges grown on Kyushu Island and the 
opportunity for Unshu oranges from Honshu Island to be marketed in U.S. 
citrus-producing States. The requirement that shipments from Honshu 
Island be fumigated using methyl bromide would not affect the volume of 
Unshu oranges exported, since all shipments from that island are 
already fumigated voluntarily. Whether the fruit continues to be 
wrapped after individual fruit wrappers are no longer required would 
probably be determined largely by customer preference.
    As explained, increases in the quantity of Unshu oranges imported 
from Japan are not expected to have a significant economic effect on 
U.S. tangerine producers, whether the producer is a small or large 
entity.

Cost-Benefit Analysis and Analysis of Alternatives

    Economic effects on U.S. producers and consumers resulting from 
this rule, if it is adopted, are expected to be insignificant. As 
described, projected Unshu orange imports represent about one-third of 
1 percent of domestic tangerine supply. This small amount is unlikely 
to affect the demand for other tangerines, especially given that Unshu 
orange prices are triple those of other tangerines. U.S. retailers and 
consumers of Unshu oranges would benefit, particularly those in citrus-
producing States that currently do not have direct access to them.
    Alternatives to this rule would be to either maintain existing 
import regulations or propose restrictions different from those set 
forth here. The risk assessment supports neither alternative. Japanese 
sources and U.S. destinations can be expanded without jeopardizing the 
U.S. citrus industry. The economic effect would be positive, but very 
minor.
    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 Unshu oranges to be imported into 
the United States from Kyushu Island and Honshu Island, Japan, and 
Cheju Island, Republic of Korea. If this proposed rule is adopted, 
State and local laws and regulations regarding Unshu oranges imported 
under this rule would be preempted while the fruit is in foreign 
commerce. Fresh Unshu 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

[[Page 19897]]

effect will be given to this rule, and this rule will not require 
administrative proceedings before parties may file suit in court 
challenging this rule.

National Environmental Policy Act

    An environmental assessment and finding of no significant impact 
have been prepared for this proposed rule. The assessment provides a 
basis for the conclusion that the importation of Unshu oranges grown at 
approved locations in Japan and imported into certain areas of the 
United States under the conditions specified in this proposed rule 
would not present a risk of introducing or disseminating citrus canker, 
citrus fruit fly, and mealybugs and would not have a significant impact 
on the quality of the human environment. Based on the finding of no 
significant impact, the Administrator of the Animal and Plant Health 
Inspection Service has determined that an environmental impact 
statement need not be prepared.
    The environmental assessment and finding of no significant impact 
were prepared in accordance with: (1) The National Environmental Policy 
Act of 1969 (NEPA), as amended (42 U.S.C. 4321 et seq.), (2) 
regulations of the Council on Environmental Quality for implementing 
the procedural provisions of NEPA (40 CFR parts 1500-1508), (3) USDA 
regulations implementing NEPA (7 CFR part 1b), and (4) APHIS' NEPA 
Implementing Procedures (7 CFR part 372).
    Copies of the environmental assessment and finding of no 
significant impact are available for public inspection 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 copies are requested to 
call ahead on (202) 690-2817 to facilitate entry into the reading room. 
In addition, copies may be obtained by writing to the individual listed 
under FOR FURTHER INFORMATION CONTACT.

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. 99-099-1. 
Please send a copy of your comments to: (1) Docket No. 99-099-1, 
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 rulemaking would relieve restrictions on the importation of 
Unshu oranges from Japan, as well as their distribution within the 
United States, without presenting a significant risk of introducing 
citrus canker or other destructive plant diseases or pests. 
Implementing this program, however, will necessitate the use of an 
information collection activity in the form of a certificate.
    We are asking OMB to approve, for 3 years, our use of this 
certificate in connection with our program to relieve restrictions on 
the importation of Unshu oranges from citrus canker-free areas of 
Japan.
    We are soliciting comments from the public (as well as affected 
agencies) concerning our proposed information collection and 
recordkeeping requirements. These comments will help us:
    (1) Evaluate whether the proposed information collection is 
necessary for the proper performance of our agency's functions, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of our estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the information collection on those who 
are to respond (such as through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology; e.g., permitting electronic 
submission of responses).
    Estimate of burden: Public reporting burden for this collection of 
information is estimated to average 1 hour per response.
    Respondents: Full-time, salaried plant health officials of Japan's 
Plant Protection Service and growers of Unshu oranges.
    Estimated annual number of respondents: 10.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 10.
    Estimated total annual burden on respondents: 10 hours. (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: Ms. 
Laura Cahall, APHIS' Information Collection Coordinator, at (301) 734-
5360.

List of Subjects in 7 CFR Part 319

    Bees, Coffee, Cotton, Fruits, Honey, Imports, Logs, Nursery stock, 
Plant diseases and pests, Quarantine, Reporting and recordkeeping 
requirements, Rice, Vegetables.
    Accordingly, we propose to amend 7 CFR part 319 as follows:

PART 319--FOREIGN QUARANTINE NOTICES

    1. The authority citation for part 319 would continue to read as 
follows:

    Authority: Title IV, Pub. L. 106-224, 114 Stat. 438, 7 U.S.C. 
7701-7772; 7 U.S.C. 166 and 450; 21 U.S.C. 136 and 136a; 7 CFR 2.22, 
2.80, and 371.3.

    2. Section 319.28 would be amended as follows:
    a. Paragraphs (b)(2), (b)(3), (b)(4), and (b)(6) would be 
redesignated as paragraphs (b)(3), (b)(4), (b)(6), and (b)(7), 
respectively.
    b. Paragraph (b) introductory text, and newly redesignated 
paragraphs (b)(6)(i) and (b)(7) would be revised.
    c. New paragraphs (b)(2) and (b)(5) would be added.


Sec. 319.28  Notice of quarantine.

* * * * *
    (b) The prohibition does not apply to Unshu oranges (Citrus 
reticulata Blanco var. unshu, Swingle [Citrus unshiu Marcovitch, 
Tanaka]), also known as Satsuma, grown in Japan or on Cheju Island, 
Republic of Korea, and imported under permit into any area of the 
United States except for those areas specified in paragraph (b)(7) of 
this section: Provided, that each of the following safeguards is fully 
carried out:
* * * * *
    (2) In Unshu orange export areas and buffer zones on Kyushu Island, 
Japan, trapping for the citrus fruit fly (Bactrocera tsuneonis) must be 
conducted as prescribed by the Japanese Government's Ministry of 
Agriculture, Forestry and Fisheries and the U.S. Department of 
Agriculture. If fruit flies are detected, then shipping will be 
suspended from the export area until negative trapping shows the 
problem has been resolved.
* * * * *

[[Page 19898]]

    (5) Each shipment of oranges grown on Honshu Island, Japan, must be 
fumigated with methyl bromide after harvest and prior to exportation to 
the United States. Fumigation must be at the rate of 3 lbs./1000 cu. 
ft. for 2 hours at 59  deg.F or above at normal atmospheric pressure 
(chamber only) with a load factor of 32 percent or below.
    (6) * * *
    (i) The individual boxes in which the oranges are shipped must be 
stamped or printed with a statement specifying the States into which 
the Unshu oranges may be imported, and from which they are prohibited 
removal under a Federal plant quarantine.
* * * * *
    (7) The Unshu oranges may be imported into the United States only 
through a port of entry listed in Sec. 319.37-14 of this part, except 
as follows:
    (i) Unshu oranges from Honshu Island, Japan, may not be imported 
into American Samoa, the Northern Mariana Islands, Puerto Rico, or the 
U.S. Virgin Islands.
    (ii) Unshu oranges from Kyushu Island, Japan (Prefectures of 
Fukuoka, Kumanmoto, Nagasaki, and Saga only), or Cheju Island, Republic 
of Korea, may not be imported into American Samoa, Arizona, California, 
Florida, Hawaii, Louisiana, the Northern Mariana Islands, Puerto Rico, 
Texas, or the U.S. Virgin Islands.
* * * * *

    Done in Washington, DC, this 13th day of April 2001.
Thomas Hunt Shipman,
Acting Deputy Under Secretary, Marketing and Regulatory Programs.
[FR Doc. 01-9628 Filed 4-17-01; 8:45 am]
BILLING CODE 3410-34-U