[Federal Register Volume 67, Number 204 (Tuesday, October 22, 2002)]
[Proposed Rules]
[Pages 64827-64833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26811]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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.
 
 ========================================================================
 

  Federal Register / Vol. 67, No. 204 / Tuesday, October 22, 2002 / 
Proposed Rules  

[[Page 64827]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 94

[Docket No. 02-036-1]


Add Yucatan Peninsula to the List of Regions Considered Free of 
Exotic Newcastle Disease

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: We are proposing to amend the regulations by adding the 
Mexican States of Campeche, Quintana Roo, and Yucatan to the list of 
regions considered free of exotic Newcastle disease. We have conducted 
a risk evaluation and have determined that these three Yucatan 
Peninsula States have met our requirements for being recognized as free 
of this disease. This proposed action would allow importation into the 
United States of poultry and poultry products from these regions and 
would eliminate restrictions that no longer appear necessary.

DATES: We will consider all comments that we receive on or before 
December 23, 2002.

ADDRESSES: You may submit comments by postal mail/commercial delivery 
or by e-mail. If you use postal mail/commercial delivery, please send 
four copies of your comment (an original and three copies) to: Docket 
No. 02-036-1, Regulatory Analysis and Development, PPD, APHIS, Station 
3C71, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please state 
that your comment refers to Docket No. 02-036-1. If you use e-mail, 
address your comment to [email protected]. Your comment must 
be contained in the body of your message; do not send attached files. 
Please include your name and address in your message and ``Docket No. 
02-036-1'' on the subject line.
    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. Hatim Gubara, Staff Veterinarian, 
Regionalization Evaluation Services Staff, National Center for Import 
and Export, VS, APHIS, 4700 River Road Unit 38, Riverdale, MD 20737-
1231; phone (301) 734-4356, fax (301) 734-3222.

SUPPLEMENTARY INFORMATION:

Background

    The Animal and Plant Health Inspection Service (APHIS) of the 
United States Department of Agriculture (USDA) regulates the 
importation of animals and animal products into the United States to 
guard against the introduction of animal diseases not currently present 
or prevalent in this country. The regulations pertaining to the 
importation of animals and animal products are set forth in the Code of 
Federal Regulations (CFR), title 9, chapter I, subchapter D (9 CFR 
parts 91 through 99).
    Until several years ago, the regulations in parts 91 through 99 
(referred to below as the regulations) governed the importation of 
animals and animal products according to the recognized disease status 
of the exporting country. In general, if a disease occurred anywhere 
within a country's borders, the entire country was considered to be 
affected with the disease, and importations of animals and animal 
products from anywhere in the country were regulated accordingly. 
However, international trade agreements entered into by the United 
States--specifically, the North American Free Trade Agreement and the 
World Trade Organization Agreement on Sanitary and Phytosanitary 
Measures--require APHIS to recognize regions, rather than only 
countries, for the purpose of regulating the importation of animals and 
animal products into the United States.
    Consequently, on October 28, 1997, we published in the Federal 
Register a final rule (62 FR 56000-56026, Docket No. 94-106-9, 
effective November 28, 1997) and a policy statement (62 FR 56027-56033, 
Docket No. 94-106-8) that established procedures for recognizing 
regions (referred to below as regionalization) for the purpose of 
regulating the importation of animals and animal products. With the 
establishment of those procedures, APHIS may consider requests to allow 
the importation of a particular type of animal or animal product from a 
foreign region, as well as requests to recognize all or part of a 
country or countries as a region. The regulations define the term 
region, in part, as ``any defined geographic land area identifiable by 
geological, political, or surveyed boundaries.''
    In accordance with these regionalization procedures, we are 
proposing to amend the regulations in Sec.  94.6 by adding the Mexican 
States of Campeche, Quintana Roo, and Yucatan to the lists of regions 
considered free of exotic Newcastle disease (END). This proposed rule 
would allow importation into the United States of poultry and poultry 
products from these regions and would eliminate restrictions that no 
longer appear necessary.
    We are also proposing to amend Sec.  94.15, which, among other 
things, sets out requirements for transit through the United States of 
poultry carcasses, parts, or products that are otherwise ineligible for 
entry into the United States under part 94. Because these requirements 
would no longer apply to poultry carcasses, parts, or products from 
Campeche, Quintana Roo, and Yucatan, references to these States in 
Sec.  94.15(c) would be removed.

Risk Evaluation

    Using information submitted to us by the Federal Government of 
Mexico through the Secretariat for Agriculture, Livestock, Rural 
Development, Fisheries, and Food Safety (SAGARPA), as well as 
information gathered during a site visit by APHIS staff to the Yucatan 
Peninsula in March 2001, we have reviewed and analyzed the animal 
health status of these States relative to END. This review and analysis 
was

[[Page 64828]]

conducted in light of the factors identified in Sec.  92.2, 
``Application for recognition of the animal health status of a 
region,'' which are used to evaluate the risk associated with importing 
animals or animal products into the United States from a given region. 
Based on the information submitted to us, we have concluded the 
following:

Veterinary Infrastructure

    SAGARPA conducts sanitary and phytosanitary programs in conjunction 
with State and industry groups under a commission structure. Examples 
of programs under the authority of SAGARPA and of the Directorate for 
Animal Health (DGSA), which operates under SAGARPA, are animal disease 
control or eradication activities, including quarantine and movement 
restrictions; accreditation of professionals to perform program 
activities; disease reporting; emergency response; disease diagnosis; 
and animal depopulation. International seaport and airport border 
control for animal and plant and products is under the authority of 
SAGARPA and the Directorate for Phyto- and Zoosanitary Inspection 
(DGIF).
    Each State has a Federal Delegate and other Federal personnel 
assigned to conduct the Federal animal health activities in that State. 
Other personnel include an Assistant Delegate, as well as DGSA and DGIF 
personnel assigned to work in the State.
    Each Federal delegate works with the State animal health officials 
to administer the joint Federal/State animal health programs. A 
peninsular animal health council, which is made up of the Federal 
regional coordinator, State animal health officials, and SAGARPA 
delegates, meets every few months to evaluate and determine the funding 
needs for the animal health activities of the region. For these 
programs, a significant joint budget is managed by the Federal, 
regional, and State officials.
    Results of our evaluation indicate that animal health officials in 
Campeche, Quintana Roo, and Yucatan have the legal authority to enforce 
Federal and State regulations pertaining to END and the necessary 
veterinary infrastructure to carry out END surveillance and control 
activities. No specific factors were identified in the evaluation that 
might present a risk to the United States if poultry or poultry 
products were to be imported from these three Yucatan Peninsula States.

Disease History and Surveillance

    The Government of Mexico recognized the State of Yucatan as free of 
END in July 1996. The last reported focus of infection was detected and 
eradicated in May 1984. Similarly, Quintana Roo was declared free in 
December of 1997, the last focus having been detected and eradicated in 
September 1990. Campeche, which has had no history of END, was 
officially recognized by the Mexican Government as free of the disease 
in December 1997.
    Because the three Yucatan Peninsula States are considered to be 
free of END by Mexico, surveillance for animal disease must comply with 
the dictates of program manuals for END. In general terms, within free 
States, active and passive surveillance are performed every year.
    Active Surveillance. Each year, a census is submitted to the DGSA's 
risk analysis and international reporting unit in Mexico City. That 
unit responds with instructions for the active surveillance to be 
performed in each State. Active surveillance data collected in 1999 and 
2000 are shown below in tables 1 and 2.

                 Table 1.--Surveillance Testing in Yucatan Peninsula for Newcastle Disease, 1999
----------------------------------------------------------------------------------------------------------------
                                                               Commercial  Samples per    Backyard   Samples per
                            State                                flocks     commercial     flocks      backyard
                                                                sampled        flock      sampled       flock
----------------------------------------------------------------------------------------------------------------
Campeche....................................................           32           59          299            5
Quintana Roo................................................           11           59          299            5
Yucatan.....................................................          212           29          299            5
----------------------------------------------------------------------------------------------------------------


                 Table 2.--Surveillance Testing in Yucatan Peninsula for Newcastle Disease, 2000
----------------------------------------------------------------------------------------------------------------
                                                               Commercial  Samples per    Backyard   Samples per
                            State                                flocks     commercial     flocks      backyard
                                                                sampled        flock      sampled       flock
----------------------------------------------------------------------------------------------------------------
Campeche....................................................          *58           59          350            5
Quintana Roo................................................          *20        36-69          348            5
Yucatan.....................................................         *225           29          356           5
----------------------------------------------------------------------------------------------------------------
*The discrepancy in the number of flocks compared to 1999 may be due to collections from separate houses on same
  farm.

    Selection of flocks for testing is done in each State by program 
officials. All commercial flocks (i.e., flocks set up for commerce, 
with appropriate fencing and biosecurity to isolate the unit) are 
sampled once a year. Birds are selected at random from within the 
selected flocks.
    There is a special high-risk zone in Campeche, adjacent to the 
State of Tabasco, which is in the control phase for END; this zone 
consists of the area within 50 km of the Tabasco border and is 
delineated by peninsular officials, not by the national program. 
Additional backyard poultry premises are tested annually from the high-
risk zone, above the number of samples outlined by the national 
program. To test for END and salmonella in poultry, samples are 
collected from approximately 60 extra premises.
    Passive Surveillance. Cases of concern are reported by and to 
various personnel. Once a problem is reported to an official, the 
mandated response time is 24 hours. Quarantine of a premises is based 
on presumptive clinical signs, and appropriate samples must be 
collected. Officials may take more definitive action when they have 
certain presumptive results from the local laboratory. For END and 
other poultry diseases that occur in portions of Mexico, samples 
generally go to a regional laboratory. Positive samples are

[[Page 64829]]

sent to the national laboratories in Mexico City for confirmation. 
Table 3 below shows the numbers of passive surveillance samples 
submitted to the Yucatan Peninsula's regional laboratory in Merida, 
Yucatan, for Newcastle disease diagnosis during 2000. All samples were 
negative for END.

        Table 3.--Total Numbers of Samples Run for Newcastle Disease Diagnosis (program and other), 2000
----------------------------------------------------------------------------------------------------------------
                                                                    Number of flocks
                             State                                    represented           Number of samples
----------------------------------------------------------------------------------------------------------------
Campeche......................................................                      470                    3,003
Quintana Roo..................................................                      387                    4,457
Yucatan.......................................................                      598                   15,053
----------------------------------------------------------------------------------------------------------------

    Results of our evaluation indicate that authorities in the Yucatan 
Peninsula are conducting an adequate level of END surveillance to 
detect the disease if it were to be reintroduced into the peninsula.

Diagnostic Capabilities

    There are two laboratories that provide veterinary diagnostic 
services to the poultry industry in the Yucatan Peninsula. One is a 
small regional laboratory located in Chetumal in the State of Quintana 
Roo, which provides general microbiological services to local producers 
but does not conduct diagnostic tests for program diseases. The second 
is a full-service regional laboratory located in Merida, Yucatan. The 
Merida laboratory also provides support for hazard analysis and 
critical control point (HACCP) programs for Federally inspected (TIF) 
processing plants in the region.
    Tests for END are conducted using chick embryos from commercial 
sources. The plate hemagglutination test (HA) is used to test for the 
presence of the virus. Any samples that test positive at the Yucatan 
lab are sent to the central laboratories in Mexico City (CENASA) for 
confirmation, and tissues of any suspect animals are sent to the Exotic 
Animal Disease Commission (EADC) Laboratory in Mexico City for virus 
isolation.
    The Yucatan Regional Laboratory in Merida meets the Office of 
International Epizootics' recommendations for equipment and training. 
An APHIS team visited the laboratory in 2001 and deemed the facilities 
and personnel adequate for the END surveillance program. The laboratory 
does not have an official quality assurance program in place; however, 
some monitoring of equipment is being performed.
    APHIS concluded that the laboratory capabilities and infrastructure 
on the Yucatan Peninsula are sufficient to support the END surveillance 
activities.

Vaccination Status

    Vaccination against Newcastle disease is currently being practiced 
on commercial farms on the Yucatan Peninsula, as it is in all other 
Mexican States, in accordance with Mexican Federal regulations. APHIS 
concluded that vaccinated birds do not constitute a significant risk 
factor for introducing END into the United States.

Disease Status of Adjacent Regions

    Yucatan is bordered to the west by Campeche, and by Quintana Roo to 
the east and south. Tabasco is the only Mexican State bordering the 
Yucatan Peninsula and shares the western border of the peninsula. The 
State of Campeche shares its southern border with Guatemala, and the 
State of Quintana Roo shares its southern border with both Guatemala 
and Belize.
    The State of Tabasco is in the control phase for END. There were 3 
foci of END infection in Tabasco in 2000, out of 50 in all of Mexico.
    The United States considers the countries of Belize and Guatemala 
to be affected with END. Officials of the Regional International 
Organization for Agricultural Health informed APHIS that Belize has 
gone without reporting a case of END for several years, and that there 
are very few poultry in the Pet[eacute]n region of Guatemala bordering 
the Yucatan Peninsula. Cases are more likely to be reported in southern 
Guatemala. Guatemala apparently is entering into an eradication program 
for several poultry diseases, including END.
    Although there are continuing END outbreaks in the adjacent Mexican 
State of Tabasco and the adjacent country of Guatamala, APHIS considers 
that the control point activities (described in the section ``Movement 
Across Borders'') in place between the Yucatan Peninsula States and 
their neighbors are sufficient to reduce substantially the risk from 
END. In addition, surveillance and eradication activity for diseases 
considered exotic is diligent and sufficient for rapid control of 
outbreaks of the type observed in the past.

Degree of Separation from Adjacent Regions

    The State of Yucatan is northwest of Quintana Roo, and Campeche 
sits to the west, with Guatemala and Belize located south and 
southwest. The Gulf of Mexico lies to the north, the Caribbean to the 
east, and the Hondo River to the south, bordering Belize. Quintana Roo 
is separated from Guatemala by the Calakmul Biosphere Reserve, a 
natural rain forest protected by the Mexican government, and from 
Belize by the Hondo River. The border between Campeche and the State of 
Tabasco follows a river for a significant distance. In Campeche's 
southern part, bordering Guatemala, sits the Calakmul Biosphere 
Reserve.
    The area of higher risk closest to the Yucatan Peninsula is the 
State of Tabasco, which, as indicated above, had three outbreaks of END 
in 2000. APHIS concluded that the peninsula had sufficient separation 
from areas with higher risk.

Movement Across Borders

    There is a system of interstate and zonal agricultural and animal 
health checkpoints operating throughout Mexico. SAGARPA generally has 
overall authority for these activities. The Mexican National 
Agricultural Quarantine System represents the strategic base for the 
implementation of foreign and domestic quarantine services. These 
services focus on preventing the entry of exotic diseases and pests; 
assisting in the prevention and the control and eradication of such 
diseases, if they should occur; and supporting the phyto/zoosanitary 
campaigns at the national levels to maintain zones that are free of 
diseases and pests.
    The primary means for preventing reintroduction of END into the 
Yucatan Peninsula is through regulations controlling the movement of 
land and air traffic. Movement of birds and bird products that enter 
the peninsula are subject to zoosanitary certificates issued by local 
organizations under SAGARPA's control.

[[Page 64830]]

    The border checkpoints between Campeche and Tabasco provide 24-hour 
inspection and control. All roads that traverse the border between 
these two States are tightly monitored and controlled by officials from 
SAGARPA, peninsular governments, and law enforcement and military 
personnel from Campeche, Quintana Roo, and Yucatan, as well as from the 
State of Tabasco. Animal and plant products detected during vehicle 
searches are confiscated and incinerated. Movement of livestock and 
poultry between States is prohibited without proper movement 
authorization/documentation, and the unauthorized transport of live 
animals from Tabasco is strictly prohibited.
    There are two international airports on the peninsula, one in 
Merida and one in Cancun. There are national airports in Campeche and 
Quintana Roo. The site visit team visited the international airport at 
Merida, Yucatan. Program officials inspect all incoming flights, both 
passenger and cargo flights, for unpermitted agricultural products, 
including food wastes and stores.
    The maritime port of Progreso primarily handles shipments of grain. 
Animals and animal products are allowed entry if the proper health 
certificate and permit requirements are met. There are four full-time 
inspectors at the port, including two veterinarians.
    Officials on the Yucatan Peninsula have the authority, procedures, 
and infrastructure to enforce effectively the system of permits, 
inspection, quarantines, and treatments that the peninsula has in place 
to control animals and animal products. APHIS did not identify any 
specific limitations in the system that might pose a risk to the United 
States.

Livestock Demographics and Marketing Practices

    In recent years, the Yucatan Peninsula has seen a significant 
growth in production of poultry, swine, and cattle. In 2000, the State 
of Yucatan produced 82,099 metric tons of broilers, 76,530 metric tons 
of eggs, and 1,512 metric tons of turkey meat. The peninsula has 
evolved into an agriculture exporting region, supplying poultry 
products to other parts of Mexico, as well as to foreign markets. 
Disease control and surveillance programs are in place for poultry, 
swine, and cattle, as well as for bee pests. For poultry, control 
programs target END, avian influenza, and salmonella.
    Site visit team members reviewed census information for poultry in 
the States on the Yucatan Peninsula. The population of chickens and 
proportion on commercial and backyard premises, based on the 2000 
census, are shown in table 4.

                  Table 4.--Poultry Population and Proportion on Commercial Farms, 2000 Census
----------------------------------------------------------------------------------------------------------------
                                               Commercial farms                        Backyard farms
                                   -----------------------------------------------------------------------------
               State                                           Percentage                             Percentage
                                     Number of    Number of     of total    Number of    Number of     of total
                                       farms       poultry       birds        farms       poultry       birds
----------------------------------------------------------------------------------------------------------------
Campeche..........................           30    1,243,181         82.1       21,595      271,500         17.9
Quintana Roo......................            2    2,139,706           92       25,639      185,212            8
Yucatan...........................          226  *13,000,000           92       58,501    1,132,828           8
----------------------------------------------------------------------------------------------------------------
* = 1999 figures.

    About 60 percent of the peninsula's poultry production is for 
regions outside the peninsula. Most of the birds and poultry products 
that come into Quintana Roo and Campeche originate in the State of 
Yucatan. A site visit was made to the third largest broiler-producing 
company in the Yucatan, located near Merida. This was a first-class 
operation that would rival the best production facilities in the United 
States. However, it appeared that many other operations consisted of 
two to six house units with passive air systems and chicken houses 
often located close to heavily traveled roads. Most houses appeared to 
be 15 or more years of age.
    For both economic and health reasons, the poultry industry on the 
Yucatan Peninsula is committed to the production of quality products 
and the maintenance of END-free status. Industry leaders demonstrated 
an awareness of animal disease control measures needed to maintain a 
healthy and productive animal industry. Industry groups contribute 
funds to develop and improve sanitary operations to maintain the END-
free status of their respective States.
    APHIS did not identify any factors in this category that might pose 
a risk to the United States if poultry or poultry products were to be 
imported from the Yucatan Peninsula.

Detection and Eradication of Disease

    END has been effectively controlled and eradicated from Quintana 
Roo and Yucatan, and has no known history in Campeche. Accordingly, END 
is now considered an exotic disease on the Yucatan Peninsula. 
Therefore, while there are no active disease control programs, the 
States do maintain both active and passive disease surveillance, 
ongoing animal movement controls, and an emergency response system in 
case END is again detected in the Yucatan Peninsula States. According 
to Mexican regulations, in the event of any cases of END in a free 
zone, a sanitary slaughter policy would be implemented, along with 
cleaning and disinfection of affected premises. APHIS did not identify 
specific limitations in this system that would pose a risk to the 
United States.
    Results of our evaluation indicate that the Federal Government of 
Mexico and the State Governments of Campeche, Quintana Roo, and Yucatan 
have the laws, policies, and infrastructure to detect, respond to, and 
eliminate any reoccurrence of END.
    These findings are described in further detail in a qualitative 
evaluation that may be obtained from the person listed under FOR 
FURTHER INFORMATION CONTACT and may be viewed on the Internet at http://www.aphis.usda.gov/vs/reg-request.html by following the link for 
current requests and supporting documentation. The evaluation documents 
the factors that have led us to conclude that Campeche, Quintana Roo, 
and Yucatan are free of END. Therefore, we are proposing to recognize 
the Mexican States of Campeche, Quintana Roo, and Yucatan as free of 
END; add them to the list in Sec.  94.6 of regions where END is not 
known to exist; and amend Sec.  94.15 to remove restrictions on the 
movement of poultry carcasses, parts, or products from these States 
that would no longer apply.

Executive Order 12866 and Regulatory Flexibility Act

    This proposed rule has been reviewed under Executive Order 12866. 
The rule

[[Page 64831]]

has been determined to be not significant for the purposes of Executive 
Order 12866 and, therefore, has not been reviewed by the Office of 
Management and Budget.
    This proposed rule would amend the regulations by adding the 
Mexican States of Campeche, Quintana Roo, and Yucatan to the list of 
regions considered free of END and removing END-related restrictions on 
the movement of poultry carcasses, parts, or products from these States 
into the United States that would no longer apply.
    A number of factors could influence how much of the poultry 
produced in the Yucatan Peninsula might be exported to the United 
States as a result of this proposed rule. These factors include 
domestic and international supply of, and demand for, poultry and 
poultry substitutes, U.S. grain prices, exchange rates, freight rates, 
the structure (number of large integrated operations versus the number 
of traditional and semi-traditional operations) of the poultry industry 
in the Yucatan Peninsula, and the ability of Yucatan producers/packers 
consistently to ship cuts that meet U.S. market specifications.
    As shown in table 5, Yucatan Peninsula poultry production peaked at 
roughly 100,000 metric tons (MTs) in 1997 and consistently accounted 
for about 8 percent of Mexico's total poultry production from 1992 
until 1999, the last year for which data were available.

                                              Table 5.--Yucatan Poultry Production by State 1992-1999 (MTs)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                              Year                                   1992       1993       1994       1995       1996       1997       1998       1999
--------------------------------------------------------------------------------------------------------------------------------------------------------
Campeche........................................................      4,152      5,821      6,322      6,438      6,679      7,440      6,604      6,784
Quintana Roo....................................................      5,124      5,940      5,810      7,043      5,490      5,865      4,685      5,374
Yucatan.........................................................     63,027     74,311     77,841     83,311     86,485     89,698     79,900     81,470
                                                                 ------------
    Total.......................................................     72,303     86,072     89,884     96,792     98,654    103,003     91,189     93,628
                                                                 ============
Percentage of Mexico's production...............................       8.05       8.28       7.98       7.54      7.80
--------------------------------------------------------------------------------------------------------------------------------------------------------
 Source: Centro de Estadistica Agropecuaria/SAGARPA.

    Our analysis of poultry production in the Yucatan Peninsula 
suggests 100,000 MTs as the upper limit for poultry and poultry 
products that could be made available for export to the United States 
at this time. The Yucatan Peninsula is a grain and oilseed deficit 
area. Most of the grains and oilseeds used in poultry production (the 
single largest and most expensive input in poultry production) are 
imported from the United States. This dependence on imported grains and 
oilseeds will tend to limit the growth of the Yucatan Peninsula's 
poultry production and, consequently, the amount of poultry and poultry 
products available for export to the United States.
    It is far more likely that the actual amount of poultry and poultry 
products that would be exported to the United States from the Yucatan 
Peninsula States in the near term as a result of this rulemaking would 
be significantly less than 100,000 MTs. A general analysis of Mexican 
poultry production systems suggests that a maximum of 60 to 70 percent 
of Yucatan Peninsula poultry production might meet U.S. import 
standards.\1\ According to Foreign Agricultural Service attach[eacute] 
reports and Economic Research Service (ERS) analysts, most Yucatan 
Peninsula production would probably be consumed locally or diverted to 
the local tourist industry. Because of shipping costs, it is likely 
that Mexican producers would only find it profitable to ship breast 
cuts to the United States. Table 6 shows high and low estimates for 
possible exports of poultry and poultry products from the Yucatan 
Peninsula to the United States. As shown in the table, between 18,000 
and 52,500 MTs of Yucatan Peninsula poultry could be available for 
export to the United States, depending on domestic consumption, a 
factor that is very difficult to gauge or predict. Based on these 
figures, the amount of breast meat cuts available for export to the 
United States could range from roughly 5,786 to 16,875 MTs.\2\
---------------------------------------------------------------------------

    \1\ ``Outlook for Mexican Poultry Industry and U.S.-Mexican 
Poultry Trade,'' by Milton Madison and David Harvey. USDA/ERS 
Livestock, Dairy, and Poultry Report, July 17, 1998, LDP-52.
    \2\ A 42-ounce processed broiler carcass is comprised of 12.5 to 
14 ounces of breast meat, or roughly 32 percent breast meat.

   Table 6.--Estimated Yucatan Peninsula Poultry and Poultry Products
           Available for Export to the United States (in MTs)
------------------------------------------------------------------------
            Potential exports              High estimate   Low estimate
------------------------------------------------------------------------
Total...................................         100,000         100,000
Acceptable for U.S. import..............          70,000          60,000
Acceptable for U.S. import and available          52,500          18,000
 for export (not consumed domestically).
Estimated breast meat available for               16,875          5,786
 export to U.S..........................
------------------------------------------------------------------------
 Source: Centro de Estad[iacute]stica Agropecuaria/SAGARPA statistics
  provided by Leland Southard of USDA/ERS.

    These amounts would make up a minuscule share of the U.S. market. 
The United States is the world's largest producer and exporter of 
poultry meat. In 1999, U.S. poultry meat production totaled 35.3 
billion pounds (159,090,909 MTs), of which 83 percent was broiler meat, 
15 percent was turkey meat, and 2 percent was other chicken meat. The 
total farm value of U.S. poultry production in 1999 was $22.4 billion. 
Broiler production accounted for the majority of the value at $15.1 
billion, followed by eggs at $4.3 billion, turkey at $2.8 billion, and 
other chicken at $68 million. The high estimate of 52,500 MTs of 
Yucatan Peninsula poultry and poultry parts available for export to the 
United States would translate to 0.033 percent of U.S. poultry 
production based on the 1999 figures. The low

[[Page 64832]]

estimate of 18,000 MTs available for export would equal 0.0113 percent 
of 1999 U.S. production. The percentages for estimated breast meat 
exports would, of course, be even smaller.
    The Regulatory Flexibility Act requires that agencies specifically 
consider the economic impact of their rules on small entities. Among 
the small entities that could be affected by this proposed rule are 
U.S. producers of poultry and poultry products, U.S. freight 
forwarders, and U.S. trucking and shipping firms. All of these 
categories are comprised primarily of small entities. Table 7 provides 
a breakdown.

  Table 7.--Number and Type of Small Businesses Potentially Affected by
                              Proposed Rule
------------------------------------------------------------------------
                                            Total U.S.
            Type of business                 entities     Small entities
------------------------------------------------------------------------
Local and long distance U.S. trucking             13,815          13,529
 firms (refrigerated)...................
U.S. freight forwarders.................           5,771           5,674
Deep sea freight transport..............             431             273
Poultry farms...........................          63,246          53,530
------------------------------------------------------------------------

    The U.S. poultry industry is dominated by contract growing 
arrangements. A small number of very large, vertically integrated 
poultry companies own most poultry in the United States. The poultry 
are raised to a marketable size by farmers under contract arrangements. 
The vertically integrated companies do not qualify as small entities 
under the Small Business Administration's standard for small poultry 
enterprises-no more than $750,000 in annual revenues. Most contract 
poultry growers do qualify as small entities, however.\3\ The 1997 
Census of Agriculture (the most recent data on the composition of 
poultry industry by size) reported a total of 63,246 farms in the 
United States that raised poultry or poultry products, producing 
poultry and poultry products valued at over $22 billion. According to 
Census of Agriculture data, approximately 53,530 or 85 percent of the 
farms raising poultry were ``small'' farms in 1997.\4\
    In theory, imported Yucatan poultry would increase the available 
supply of poultry in the United States, increase competition, and 
reduce prices. Such a development, while benefitting U.S. consumers, 
could negatively affect net revenues of U.S. producers. Due to the 
relatively small tonnage of poultry and poultry products expected to be 
exported from the Yucatan Peninsula to the United States, however, this 
proposed rule would be unlikely to have a measurable effect on U.S. 
poultry and poultry-product supplies, poultry prices, or poultry 
producer revenues.
---------------------------------------------------------------------------

    \3\ http://www.sba.gov, NAICS Code 112320, poultry production.
    \4\ 1997 Census of Agriculture-United States data, table 50, 
summary by market value of agricultural products sold.
---------------------------------------------------------------------------

    The other affected small entities--U.S. freight forwarding, 
trucking, or transport firms that could transport Mexican poultry from 
U.S. land border ports or U.S. maritime ports--could benefit from 
increased economic activity as a result of this proposed rule. As is 
the case with poultry producers, however, these effects are likely to 
be very small due to the limited amount of poultry and poultry products 
that would be exported to the United States from the Yucatan Peninsula 
States.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action would 
not have a significant economic impact on a substantial number of small 
entities.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. If this proposed rule is adopted: (1) All State 
and local laws and regulations that are inconsistent with this rule 
will be preempted; (2) no retroactive effect will be given to this 
rule; and (3) administrative proceedings will not be required before 
parties may file suit in court challenging this rule.

Paperwork Reduction Act

    This proposed rule contains no new information collection or 
recordkeeping requirements under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501 et seq.).

List of Subjects in 9 CFR Part 94

    Animal diseases, Imports, Livestock, Meat and meat products, Milk, 
Poultry and poultry products, Reporting and recordkeeping requirements.

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

PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL 
PLAGUE), EXOTIC NEWCASTLE DISEASE, AFRICAN SWINE FEVER, HOG 
CHOLERA, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND 
RESTRICTED IMPORTATIONS

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

    Authority: 7 U.S.C. 450, 7711-7714, 7751, 7754, 8303, 8306, 
8308, 8310, 8311, and 8315; 21 U.S.C. 136 and 136a; 31 U.S.C. 9701; 
42 U.S.C. 4331 and 4332; 7 CFR 2.22, 2.80, and 371.4.


Sec.  94.6  [Amended]

    2. In Sec.  94.6, paragraph (a)(2) would be amended by adding the 
words ``Mexico (States of Campeche, Quintana Roo, and Yucatan),'' after 
the word ``Luxembourg,'.
    3. In Sec.  94.15, the introductory text of paragraph (c) and 
paragraph (c)(2) would be revised to read as follows:


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

* * * * *
    (c) Poultry carcasses, parts, or products (except eggs and egg 
products) from Baja California, Baja California Sur, Chihuahua, Nuevo 
Leon, Sinaloa, Sonora, or Tamaulipas, Mexico, that are not eligible for 
entry into the United States in accordance with the regulations in this 
part may transit the United States via land ports for immediate export 
if the following conditions are met:
* * * * *
    (2) The poultry carcasses, parts, or products are packaged at a 
Tipo Inspecci[oacute]n Federal plant in Baja California, Baja 
California Sur, Chihuahua, Nuevo Leon, Sinaloa, Sonora, or Tamaulipas, 
Mexico, in leakproof containers with serially numbered seals of the 
Government of Mexico, and the containers remain sealed during the 
entire time they are in

[[Page 64833]]

transit across Mexico and the United States.
* * * * *

    Done in Washington, DC, this 16th day of October 2002 .
Peter Fernandez,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 02-26811 Filed 10-21-02; 8:45 am]
BILLING CODE 3410-34-P