[Federal Register Volume 68, Number 41 (Monday, March 3, 2003)]
[Rules and Regulations]
[Pages 9851-9854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4875]



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 Rules and Regulations
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  Federal Register / Vol. 68, No. 41 / Monday, March 3, 2003 / Rules 
and Regulations  

[[Page 9851]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 319

[Docket No. 02-108-1]


Unshu Oranges From Honshu Island, Japan

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Interim rule and request for comments.

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SUMMARY: We are amending the regulations governing the importation of 
citrus fruit to allow Unshu oranges grown on Honshu Island, Japan, to 
be imported without fumigation if the distribution of the fruit within 
the United States is limited to non-citrus-producing States. We will 
continue to require fumigation if the fruit is distributed to citrus-
producing States. This action is warranted to relieve a restriction 
that is not needed to mitigate pest risk.

DATES: This interim rule is effective March 3, 2003. We will consider 
all comments that we receive on or before May 2, 2003.

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. 02-108-1, 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. 02-108-1. 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. 
02-108-1'' 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: Ms. Jeanne VanDersal, Import 
Specialist, Phytosanitary Issues Management, PPQ, APHIS, 4700 River 
Road Unit 140, Riverdale, MD 20737-1231; (301) 734-6799.

SUPPLEMENTARY INFORMATION:

Background

    Citrus canker is a disease that 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 designated 
areas, with certain exceptions. One exception is for Unshu oranges 
(Citrus reticulata Blanco var. unshu, also known as Satsuma mandarin) 
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 from these areas of Japan and the Republic 
of Korea may be imported into approved areas of the United States. 
Also, under the regulations in 7 CFR 301.11, the Unshu oranges may not 
be moved interstate from an approved area into or through any State, 
territory, or possession where importation is prohibited under part 
319.
    Unshu oranges from Kyushu Island, Japan, and Cheju Island, Republic 
of Korea, may be imported into any area of the United States except 
American Samoa, Arizona, California, Florida, Hawaii, Louisiana, the 
Northern Mariana Islands, Puerto Rico, Texas, and the U.S. Virgin 
Islands. The importation of Unshu oranges from Honshu Island, Japan, 
had been similarly restricted, but in a final rule published in the 
Federal Register on February 1, 2002 (67 FR 4873-4877, Docket No. 99-
099-2), we amended the regulations to provide for the importation of 
Unshu oranges from Honshu Island, Japan, into the citrus-producing 
States of Arizona, California, Florida, Hawaii, Louisiana, and Texas 
and required those oranges be fumigated with methyl bromide after 
harvest and prior to exportation to the United States. As a result of 
that final rule, Unshu oranges from Honshu Island, Japan, may be 
imported into any area of the United States except American Samoa, the 
Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
    The fumigation requirement was to ensure that Unshu oranges moved 
into citrus-producing areas of the United States would not introduce 
mealybugs, mites, and scale insects that could become established in 
climates where citrus is grown.
    In the proposed rule (66 FR 19892-19898, Docket No. 99-099-1, 
published April 18, 2001) that preceded the February 2002 final rule, 
we acknowledged that these pests, if introduced into non-citrus-
producing areas, would likely not survive due to the effects of climate 
and lack of host material. We applied the fumigation requirement to all 
shipments of Unshu oranges from Honshu Island so that there would be no 
restrictions on the distribution of the fruit within those areas of the 
United States where its importation is authorized.
    We were unaware, however, of the potential economic consequences of 
this action for producers of Unshu oranges on Honshu Island who had, 
prior to the February 2002 final rule, been able to ship the Unshu 
oranges to non-citrus-producing areas of the United States without the 
mandatory fumigation. The government of Japan has informed us that the 
fumigation requirement has seriously curtailed this market, creating an 
economic hardship for Japanese growers and exporters.
    Because fumigation is not a necessary pest risk mitigation measure 
if the Unshu oranges are not distributed in citrus-producing areas of 
the United States, this interim rule removes the

[[Page 9852]]

fumigation requirement for Unshu oranges from Honshu Island that will 
be distributed only in non-citrus-producing areas of the United States. 
To effect this change, we have amended Sec.  319.28(b)(5) to specify 
that fumigation is required only for Unshu oranges from Honshu Island, 
Japan, that are to be imported into Arizona, California, Florida, 
Hawaii, Louisiana, or Texas. In addition, we have revised Sec.  
319.28(b)(7) to specify the different importation restrictions that 
apply to fumigated and unfumigated fruit produced on Honshu Island. 
This latter change will also serve to support the box marking 
provisions of Sec.  319.28(b)(6)(i), which require the individual boxes 
in which the oranges are shipped to 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.

Miscellaneous

    In order to distinguish between Citrus reticulata Blanco varieties 
unshu and satsuma, we are removing the reference to Unshu oranges as 
also being known as Satsumas. Instead, we will refer to Unshu oranges 
as also being known as Satsuma mandarins. This distinction is important 
because the Unshu orange or Satsuma mandarin (Citrus reticulata Blanco 
var. unshu) is the variety imported from Japan. This variety is not 
grown commercially in the United States; however, another variety, the 
Satsuma (Citrus reticulata Blanco var. satsuma) is grown commercially 
in California.

Immediate Action

    This rule relieves a restriction that is not necessary to mitigate 
pest risk. Immediate action is warranted to alleviate the negative 
economic effects that Japanese growers and exporters face as a result 
of our requirement to fumigate Unshu oranges from Honshu Island that 
are shipped to non-citrus-producing areas of the United States. Under 
these circumstances, the Administrator has determined that prior notice 
and opportunity for public comment are contrary to the public interest 
and that there is good cause under 5 U.S.C. 553 for making this action 
effective less than 30 days after publication in the Federal Register.
    We will consider comments we receive during the comment period for 
this interim rule (see DATES above). After the comment period closes, 
we will publish another document in the Federal Register. The document 
will include a discussion of any comments we receive and any amendments 
we are making to the rule.

Executive Order 12866 and Regulatory Flexibility Act

    This rule has been reviewed under Executive Order 12866. The rule 
has been determined to be not significant for the purposes of Executive 
Order 12866 and, therefore, has not been reviewed by the Office of 
Management and Budget.
    We are amending the regulations governing the importation of citrus 
fruit to allow Unshu oranges grown on Honshu Island, Japan, to be 
imported without fumigation if the distribution of the fruit within the 
United States is limited to non-citrus-producing States. We will 
continue to require fumigation if the fruit is distributed to citrus-
producing States. This action is warranted to relieve a restriction 
that is not needed to mitigate pest risk.
    Our economic analysis for the changes in this document is set forth 
below. It provides an analysis of the potential effects on small 
entities as required by the Regulatory Flexibility Act.
    Unshu oranges are a variety of mandarin orange currently allowed to 
be imported to the United States from Honshu Island, Japan, as long as 
they are fumigated with methyl bromide after harvest and before 
exportation. As a consequence of this interim rule, only Unshu oranges 
from Honshu Island that are destined for citrus-producing States will 
still require fumigation. Shipments of Unshu oranges from Honshu Island 
that are imported into non-citrus-producing States will not require 
methyl bromide fumigation, and the phytosanitary requirements will 
essentially revert to those that were in place before January 28, 2002.
    Unshu oranges are a specialty fruit associated with the Christmas 
holiday season. They have a limited area of distribution in the United 
States and are significantly higher priced than domestically grown 
mandarin varieties that are similarly loose-skinned and seedless. The 
analysis focuses on these characteristics in describing the expected 
economic effects of this interim rule on small entities.
    Unshu oranges from Japan are imported into the United States during 
a 1-month period, from about Thanksgiving until the latter part of 
December.\1\ The fruit is purchased as a Christmas season specialty, 
and serves a traditional gift-giving role among Asian ethnic groups in 
particular, although demand is broadening to include all segments of 
the population.
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    \1\ Information on Unshu orange imports from Japan into the 
United States and Canada provided by Rob Johns and Jerry Kraft of 
David Oppenheimer Ltd & Associates, the sole North American importer 
of Unshu oranges from Japan.
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    In addition to a relatively short period of importation, the U.S. 
market for Unshu oranges is geographically limited. An estimated 70 
percent of Unshu orange imports from Japan are sold in Alaska, and the 
remaining 30 percent are sold in the northwestern United States.
    The niche market for Unshu oranges in the United States is all the 
more apparent when the quantity imported is compared to Canadian import 
levels. Whereas 8 to 10 containers of Unshu oranges from Japan may be 
imported in 1 season by the United States, as many as 300 containers 
are shipped per season to Canada, with sales beginning at least a month 
earlier than in the United States.
    One type of citrus grown commercially in California that is 
somewhat similar to the Unshu orange is the Satsuma. The wholesale 
price of Satsumas is less than 50 cents per pound.\2\ The wholesale 
import price of Unshu oranges ranges between $0.80 and $1 per pound.\3\ 
This price difference is another indication of the distinct market for 
Unshu oranges in the United States. It is unlikely that they would 
substitute for domestically grown mandarins, particularly given their 
current geographical distribution.
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    \2\ Nearly all commercial production takes place in Fresno, 
Kern, and Tulare Counties, CA. Of these, only Fresno County has 
maintained information specific to Satsuma: In 1999, there were 650 
acres, yields averaged 4.94 tons of fresh fruit per acre, and the 
price was about $1,000 per ton (Bruce Clayton, Office of the Fresno 
County Agricultural Commissioner).
    \3\ $18 to $22 per 22-pound box, Jerry Kraft, personal 
communication.
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    Even if there were greater likelihood of substitutability, the 
quantity of Unshu oranges imported is too small to significantly affect 
U.S. demand for domestically grown mandarins. Table 1 shows imports of 
Unshu oranges from Japan and South Korea, 1998-2001. There was a 
significant increase in 2001 over 2000, due to imports from Korea 
increasing eleven-fold. Over the 4-year period, Japan's exports to the 
United States averaged about 282 metric tons. When the total quantity 
of imports for 2001 (3,087 metric tons) is compared to total U.S. 
tangerine production for the 2001-2002 season (419,000 metric tons), 
Unshu orange imports represent less than 1 percent of domestic 
tangerine production.\4\
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    \4\ NASS, ``Citrus Fruits, 2002 Summary,'' p. 4. NASS data 
aggregate mandarin citrus under the heading ``tangerine.'' Tangerine 
and mandarin both refer to Citrus reticulata varieties. If in fact 
the significant increase in imports from South Korea in 2001 was 
recorded in error, then Unshu orange imports would represent that 
much smaller a percentage of domestic tangerine production.

[[Page 9853]]



   Table 1.--Unshu Orange Imports (in kilograms) From Japan and South
                            Korea, 1998-2001
------------------------------------------------------------------------
               Year                   Japan     South Korea     Total
------------------------------------------------------------------------
2001.............................      247,681    2,839,200    3,086,881
2000.............................      100,830      255,120      355,950
1999.............................      388,918      403,050      791,968
1998.............................      392,289         None     392,289
------------------------------------------------------------------------
Source: APHIS port of entry data.
Note: Product designation varies by port, and therefore the annual
  totals may be subject to error.

    There were no Unshu oranges imported into the United States from 
Japan for the 2002 season. The reason given by the importing firm is 
that there is a high risk that much of the fruit would not be 
marketable because of the effects of methyl bromide fumigation on 
quality. This interim rule, by rescinding the methyl bromide fumigation 
requirement for Unshu oranges imported from Honshu Island into non-
citrus-producing States, will remove this marketing risk. Imports 
should then resume at a level comparable to that of recent years. The 
fumigation requirement will remain for imports into citrus-producing 
States. There is no history of such imports, and given the possible ill 
effects of fumigation on the quality of the fruit, near term sales to 
citrus-producing States would appear unlikely.
    The entities affected by this rule will be U.S. retailers who sell 
Unshu oranges from Japan. Supermarkets and other grocery stores are 
considered small entities by the Small Business Administration if they 
have annual receipts of $23 million or less, and establishments 
primarily engaged in retailing fresh fruits and vegetables are 
considered small if their annual receipts are $6 million or less.\5\ 
Most retailers that are expected to be affected by this rule are small 
entities. However, given the brief import period for this fruit and its 
geographically limited distribution, the number of retail 
establishments that may be affected is not expected to be substantial. 
Stores that do sell Unshu oranges will benefit from not having to rely 
solely on imports from South Korea. However, the benefit should be 
relatively small given that South Korea is the dominant supplier. In 
2001, 92 percent of Unshu orange imports were supplied by South Korea 
and 8 percent by Japan.\6\
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    \5\ North American Industrial Classification System (NAICS) code 
445110, Supermarkets and Other Grocery (except Convenience) Stores, 
and NAICS code 445230, Fruit and Vegetable Markets.
    \6\ If fumigated fruit had been imported in 2002 under the 
regulations in place for the shipping season, then a benefit of this 
rule would be any price reduction resulting from forgone fumigation 
expenses. However, since fumigated Unshu oranges are not being 
imported, the appropriate comparison is imports without fumigation 
versus no imports.
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    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action will 
not have a significant economic impact on a substantial number of small 
entities.

Executive Order 12988

    This rule allows Unshu oranges to be imported into non-citrus-
producing areas of the United States from Honshu Island, Japan, without 
fumigation. State and local laws and regulations regarding Unshu 
oranges imported under this rule will be preempted while the fruit is 
in foreign commerce. Fresh fruits and vegetables are generally imported 
for immediate distribution and sale to the consuming public, and remain 
in foreign commerce until sold to the ultimate consumer. The question 
of when foreign commerce ceases in other cases must be addressed on a 
case-by-case basis. No retroactive effect will be given to this rule, 
and this rule will not require administrative proceedings before 
parties may file suit in court challenging this rule.

Paperwork Reduction Act

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

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 are amending 7 CFR part 319 as follows:

PART 319--FOREIGN QUARANTINE NOTICES

    1. The authority citation for part 319 is revised to read as 
follows:

    Authority: 7 U.S.C. 450, 7711-7714, 7718, 7731, 7732, 7751-7754, 
and 7760; 21 U.S.C. 136 and 136a; 7 CFR 2.22, 2.80, and 371.3.

    2. In Sec.  319.28, paragraph (b) is amended as follows:
    a. In the introductory text, by adding the word ``mandarin'' after 
the word ``Satsuma''.
    b. By revising paragraphs (b)(5) and (b)(7) to read as set forth 
below:


Sec.  319.28  Notice of quarantine.

* * * * *
    (b) * * *
    (5) To be eligible for importation into Arizona, California, 
Florida, Hawaii, Louisiana, or Texas, 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./1,000 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. Fumigation will not be required for shipments 
of oranges grown on Honshu Island, Japan, that are to be imported into 
States other than Arizona, California, Florida, Hawaii, Louisiana, or 
Texas.
* * * * *
    (7) The Unshu oranges may be imported into the United States only 
through a port of entry listed in Sec.  319.37-14 that is located in an 
area of the United States into which their importation is authorized. 
The following importation restrictions apply:
    (i) Unshu oranges from Honshu Island, Japan, that have been 
fumigated in accordance with paragraph (b)(5) of this section may be 
imported into any area of the United States except American Samoa, the 
Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
    (ii) Unshu oranges from Honshu Island, Japan, that have not been 
fumigated in accordance with paragraph (b)(5) of this section; Unshu 
oranges from Kyushu Island, Japan (Prefectures of Fukuoka, Kumanmoto, 
Nagasaki, and Saga only); and Unshu oranges from Cheju Island, Republic 
of Korea, may be imported into any area of the United

[[Page 9854]]

States except American Samoa, Arizona, California, Florida, Hawaii, 
Louisiana, the Northern Mariana Islands, Puerto Rico, Texas, and the 
U.S. Virgin Islands.
* * * * *

    Done in Washington, DC, this 26th day of February, 2003.
Peter Fernandez,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 03-4875 Filed 2-28-03; 8:45 am]
BILLING CODE 3410-34-P