[Federal Register Volume 69, Number 55 (Monday, March 22, 2004)]
[Proposed Rules]
[Pages 13262-13269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6325]


 ========================================================================
 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. 69, No. 55 / Monday, March 22, 2004 / 
Proposed Rules  

[[Page 13262]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 319

[Docket No. 02-081-2]
RIN 0579-AB77


Importation of Clementines, Mandarins, and Tangerines From Chile

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: We are proposing to amend the fruits and vegetables 
regulations to allow the importation, under certain conditions, of 
clementines, mandarins, and tangerines from Chile into the United 
States. Based on the evidence in a recent pest risk assessment and an 
accompanying risk management document, we believe these articles can be 
safely imported from all provinces of Chile, provided certain 
conditions are met. This action would provide for the importation of 
clementines, mandarins, and tangerines from Chile into the United 
States while continuing to protect the United States against the 
introduction of plant pests.

DATES: We will consider all comments that we receive on or before May 
21, 2004.

ADDRESSES: You may submit comments by any of the following methods:
     Postal Mail/Commercial Delivery: Please send 
four copies of your comment (an original and three copies) to Docket 
No. 02-081-2, 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. 02-081-2.
     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. 02-081-2'' on the subject 
line.
     Agency Web site: Go to http://www.aphis.usda.gov/ppd/rad/cominst.html for a form you can use to 
submit an e-mail comment through the APHIS Web site.
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the instructions for locating this 
docket and submitting comments.
    Reading Room: 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.
    Other Information: You may view APHIS documents published in the 
Federal Register and related information, including the names of groups 
and individuals who have commented on APHIS dockets, 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 Staff, PPQ, APHIS, 4700 River Road Unit 
140, Riverdale, MD 20737-1236; (301) 734-5210.

SUPPLEMENTARY INFORMATION:

Background

    The regulations in ``Subpart--Fruits and Vegetables'' (7 CFR 319.56 
through 319.56-8, referred to below as the regulations), prohibit or 
restrict the importation of fruits and vegetables into the United 
States from certain parts of the world to prevent the introduction and 
dissemination of plant pests. The Government of the Republic of Chile 
has requested that the Animal and Plant Health Inspection Service 
(APHIS) amend the regulations to allow the importation into the United 
States of clementines, mandarins, and tangerines from Chile under 
certain conditions.
    To evaluate the risks associated with the importation of 
clementines, mandarins, and tangerines from Chile, a draft pest risk 
assessment entitled ``Importation of Fresh Commercial Citrus Fruit: 
Clementine (Citrus reticulata Blanco var. `Clementine'), Mandarin 
(Citrus reticulata Blanco), and Tangerine (Citrus reticulata Blanco) 
from Chile into the United States: A Pathway Initiated Plant Pest Risk 
Assessment'' (revised September 2002) was prepared. An addendum to this 
pest risk assessment was prepared in September of 2003. The Servicio 
Agricola y Ganadero, the national plant protection organization (NPPO) 
of Chile, prepared a risk management document entitled ``Measures 
Suggested for Quarantine Pest Risk Management in Clementines, Mandarin 
Oranges and Tangerines Exported from Chile to the United States of 
America'' (March 2002), which accompanied the draft pest risk 
assessment.
    On October 22, 2002, we published a notice in the Federal Register 
(67 FR 64862-64863, Docket No. 02-081-1) in which we advised the public 
of the availability of the draft pest risk assessment and its 
accompanying risk management document. We solicited comments concerning 
those documents for 60 days ending December 23, 2002, and received no 
comments by that date.
    The pest risk assessment and the risk management document may be 
viewed on the Internet at http://www.aphis.usda.gov/ppq/pra/, or in our 
reading room (information on the location and hours of the reading room 
is provided under the heading ADDRESSES at the beginning of this 
document). You may also request copies of those documents from the 
person listed under FOR FURTHER INFORMATION CONTACT.
    Based on the evidence in the pest risk assessment and its 
accompanying risk management document, we believe that clementines, 
mandarins, and tangerines can be safely imported from all provinces of 
Chile, provided certain conditions are met. Therefore, we are proposing 
to add a new Sec.  319.56-2ll to the regulations to provide for the 
importation of clementines, mandarins, and tangerines from Chile.

Permit

    Under paragraph (a) of the proposed regulations, a specific written 
permit issued in accordance with Sec.  319.56-3 would be required to 
import clementines, mandarins, and tangerines from Chile. Importers 
would be required to apply to the Plant Protection and Quarantine (PPQ) 
program for a permit in advance of the proposed shipments, stating in 
the application the country or locality of origin of the fruits, the 
port of first arrival, and the name and

[[Page 13263]]

address of the importer in the United States to whom the permit should 
be sent. Upon receipt of the application and upon approval by an 
inspector, a permit would be issued specifying the conditions of entry, 
which will be discussed in the following paragraphs, and the port of 
entry. In accordance with Sec.  319.56-4, a permit, once issued, could 
be amended or withdrawn by the Administrator at any time if it is 
determined that the importation of the fruit presents a risk.

Cold Treatment

    One of the four pests of concern identified in the risk assessment 
document is Ceratatis capitata, a fruit fly more commonly known as the 
Mediterranean fruit fly (Medfly). To address the risk presented by this 
pest, paragraph (b) of the proposed regulations would require the cold 
treatment of fruit grown in areas of Chile where Medfly is known to 
occur, which include the province of Arica as well as regulated areas 
in Chile's Metropolitan Region. Shipments from these areas would 
require cold treatment in accordance with the PPQ Treatment Manual and 
would also be required to be accompanied by documentation indicating 
that the cold treatment was initiated in Chile. Fruit from these areas 
would also have to meet all other proposed requirements.

Importation Options

    The second of the four pests of concern identified in the risk 
assessment document is Brevipalpus chilensis, a mite that is not easily 
detected through visual inspection. To address the risk presented by 
this pest, paragraph (c) of the proposed regulations would provide for 
the use of two options, a systems approach and fumigation. The systems 
approach would allow for the importation of the fruit without 
fumigation, which is a more expensive option. These options are 
discussed in detail in the following paragraphs.
    The remaining two pests of concern are the fruit leaf folders 
Proeulia auraria and Proeulia chrysopteris, which are external feeders 
that can be detected through visual inspection when either the pests 
themselves are seen externally or the fruit shows external signs of 
infestation. We believe that the risks presented by these pests can be 
addressed using the same two options we are proposing to address B. 
chilensis because the necessary visual inspection, which is the primary 
means of mitigation for these pests, will be a component of both 
options. In the proposed systems approach, one of the proposed 
requirements is preclearance inspection. A similar preclearance program 
using inspection to prevent the introduction of Proeulia spp. is 
currently in use for apricots, nectarines, peaches, plumcot, and plums 
imported into the United States from Chile (see Sec.  319.56-2s of the 
regulations). If the fumigation option were used, the fruit would be 
fumigated in accordance with the PPQ Treatment Manual, which is 
incorporated by reference in Sec.  300.1 of the regulations, and then 
inspected by an APHIS inspector after completion of the treatment prior 
to export from Chile to ensure that the fruit was free of infestation 
of any pests of Proeulia spp.

Systems Approach

    The first option being proposed by APHIS under which clementines, 
mandarins, and tangerines could be imported into the United States from 
Chile is preclearance of the commodities using a systems approach to 
phytosanitary security. Under a systems approach, APHIS defines a set 
of phytosanitary procedures, at least two of which have an independent 
effect in mitigating pest risk associated with the movement of 
commodities, whereby fruits and vegetables may be imported into the 
United States from countries that are not free of certain plant pests. 
The systems approach in this case would consist of a series of 
complementary phytosanitary measures that include: Low prevalence 
production site certification, post-harvest processing, and 
phytosanitary inspection. Each of these measures is explained in detail 
in the following paragraphs. Once the clementines, mandarins, or 
tangerines have passed through this series of pest mitigation measures, 
inspectors of the NPPO of Chile would issue a phytosanitary certificate 
stating that the fruit has been inspected and found free of any 
evidence of plant pests. A phytosanitary certificate would have to 
accompany each shipment of clementines, mandarins, or tangerines 
offered for importation into the United States from Chile.

Low Prevalence Production Site Certification

    The pest risk management document prepared by Chile outlined a 
series of phytosanitary measures whose implementation would mitigate 
the potential risk of introducing quarantine pests into the United 
States through the importation of clementines, mandarins, and 
tangerines from Chile. In order to be eligible to participate in the 
systems approach, each production site would be required to implement 
the mitigation measures discussed in the pest risk management document. 
The first of these measures, low prevalence production site 
certification, would require each production site to register annually 
with the NPPO of Chile with information including: (1) Production site 
name, (2) grower, (3) municipality, (4) province, (5) region, (6) area 
planted to each species, (7) number of plants/hectares/species, and (8) 
approximate date of harvest. This information would be used to monitor 
the phytosanitary health of the production site and to track the origin 
of shipments. These production sites would then participate in a 
program of certification of low prevalence, which would be carried out 
by the NPPO of Chile. A random sample of fruit would be collected from 
each registered production site 1 to 30 days prior to harvest. The 
fruit from each sample would undergo a washing process that allows for 
the detection of mites. This same process has proven to be effective in 
the detection of B. chilensis in other products and clementines.\1\ The 
washing process involves placing the fruit and pedicels in sieves, 
sprinkling them with a liquid soap and water solution, washing them 
with water at high pressure, washing them with water at low pressure, 
and then repeating the process. Once the fruit has been washed 
thoroughly, all contents of the sieves, which collect everything that 
is washed off of the fruit, are put on a Petri dish and analyzed for 
the presence of mites.
---------------------------------------------------------------------------

    \1\ See Annex 7 of the risk management document.
---------------------------------------------------------------------------

    Only production sites certified by the NPPO of Chile as low 
prevalence would be eligible to export under this systems approach. 
Under this systems approach, a random sample of fruit would be taken 
from each production site. In order to qualify as a low prevalence 
production site, a production site would be required to have no mites 
detected in the fruit sampled. Each production site would have only one 
opportunity per harvest season to qualify for the certification program 
since the verification process would occur before the beginning of each 
harvest season. Certification of low prevalence would be valid for one 
harvest season only. A similar certification of low prevalence program 
is currently in use for kiwifruit imported into the United States from 
Chile.
    In order to achieve low prevalence, production sites could employ 
production site control, which is discussed in the pest risk management 
document. Production site control consists of treating the production 
site with detergent or oil to reduce the

[[Page 13264]]

populations of various pests. Studies cited in the risk management 
document indicate an efficacy rate of 92 percent for the detergent 
treatment and 97.3 percent for the oil treatment in the clementine 
production sites sampled in the control of B. chilensis.\2\
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    \2\ See Annex 3 of the risk management document.
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Post-Harvest Processing

    Once the production site has been certified as a low prevalence 
production site, the fruit would be picked and would then undergo post-
harvest commercial processing. In the normal fruit packing process 
already in place in Chile for other commodities, fruit undergoes the 
following steps: (1) Washing, (2) rinsing in a chlorine bath with 
brushing using bristle rollers, (3) rinsing with a hot water shower 
with brushing using bristle rollers, (4) pre-drying at room 
temperature, (5) waxing, and (6) drying with hot air. Three specific 
studies conducted by the Fundacion para el Desarrollo Frut[iacute]cola 
and the Universidad Catolica de Valparaiso, Chile (Catholic University 
of Valparaiso, Chile) found these post-harvest processing procedures to 
be 79.9 percent to 89.7 percent effective in removing B. chilensis 
mites as a stand-alone mitigation measure.\3\
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    \3\ See Annexes 4, 5, and 6 of the risk management document.
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Phytosanitary Inspection

    As the final stage in the systems approach, once the fruit has been 
processed, each consignment, which would consist of one or more lots, 
of fruit intended for export to the United States would be subject to a 
phytosanitary inspection to verify the absence of B. chilensis and any 
visibly detectable pests, including Proeulia spp. Phytosanitary 
inspection would be conducted at an APHIS-approved inspection site in 
Chile under the direction of APHIS in conjunction with the NPPO of 
Chile.
    Clementines, mandarins, and tangerines presented for preclearance 
inspection in Chile would be required to be identified in shipping 
documents accompanying each lot of fruit that identify the packing shed 
where they were processed and the production sites where they were 
produced; we would require that this identity be maintained until the 
clementines, mandarins, and tangerines were released for entry into the 
United States.
    A biometric sample of the boxes would be selected and the fruit 
from these boxes would be visually inspected for quarantine pests. A 
portion of the fruit would be washed and the collected filtrate would 
be microscopically examined for B. chilensis.
    If one live B. chilensis mite were found during phytosanitary 
inspection, the entire consignment would have to be fumigated with 
methyl bromide in order for the fruit to be eligible for export to the 
United States. In addition, the production site of origin would be 
suspended from the low prevalence certification program for the 
remainder of the harvest season. During the term of its suspension, the 
production site could export fruit to the United States only if the 
fruit were fumigated with methyl bromide, as outlined in the following 
section. A suspended production site would have the opportunity to 
reenter the low prevalence certification program prior to the next 
harvest season. As noted previously, all production sites would have to 
requalify for the program each year, regardless of their status at the 
end of the preceding season.
    If, during preclearance inspection in Chile, inspectors were to 
find evidence of any other plant pest for which an authorized treatment 
in the PPQ Treatment Manual is available, fruit in the consignment 
would remain eligible for export to the United States if the entire 
consignment were treated for the pest in Chile under APHIS supervision. 
However, if a quarantine pest were found for which no treatment 
authorized in the PPQ Treatment Manual is available, the entire 
consignment would not be eligible for export to the United States.
    Chilean inspectors would issue a phytosanitary certificate if no 
evidence of pests was found. The phytosanitary certificate would have 
to contain an additional declaration stating that the fruit in the 
consignment meets the conditions of Sec.  319.56-2ll(d). Clementines, 
mandarins, or tangerines inspected in Chile would, like all imported 
fruits and vegetables, be subject to reinspection at the U.S. port of 
arrival as provided in Sec.  319.56-6 of the regulations.

Fumigation

    Not all exporters may be able to utilize the systems approach as a 
means for access to the U.S. market. As an alternative mitigation 
measure, we are proposing to provide for the use of an approved APHIS 
treatment for B. chilensis for clementines, mandarins, and tangerines 
from Chile.
    The treatment would be fumigation with methyl bromide at normal 
atmospheric pressure in an APHIS-approved fumigation chamber or under a 
tarpaulin in accordance with the following schedule, which is listed in 
the PPQ Treatment Manual as T-104-a-1. This treatment schedule is 
approved for spider mites, which is the group encompassing B. 
chilensis. The treatment schedule requires that tangerines (Citrus 
reticulata, which encompasses clementines, mandarins, and tangerines) 
must be warmed to a minimum of 50 [deg]F before treatment. The required 
treatment period is 2 hours.

------------------------------------------------------------------------
                                                               Dosage-
                                                              pounds of
                                                                methyl
                    Temperature ([deg]F)                       bromide
                                                              per 1,000
                                                                ft \3\
------------------------------------------------------------------------
80 or above................................................       1\1/2\
70-79 (inclusive)..........................................            2
60-69 (inclusive)..........................................       2\1/2\
50-59 (inclusive)..........................................            3
------------------------------------------------------------------------

    APHIS inspectors would monitor the fumigation and prescribe such 
safeguards as might be necessary for unloading, handling, and 
transportation preparatory to fumigation. The final release of the 
commodities for entry into the United States would be conditioned upon 
compliance with prescribed safeguards and required treatment. Shipments 
of clementines, mandarins, and tangerines from Chile that had been 
fumigated would be subject to random inspection in Chile, as well as at 
the port of arrival in accordance with Sec.  319.56-6.

Trust Fund Agreement

    Section 319.56-2z(c) of the regulations sets forth the requirement 
for a trust fund agreement for the importation of cherimoyas from Chile 
into the United States. We are proposing to require a similar trust 
fund agreement for the importation of clementines, mandarins, and 
tangerines from Chile. This agreement would require the NPPO of Chile 
to pay in advance of each shipping season all costs that APHIS 
estimates it would incur in providing inspection services and treatment 
monitoring in Chile during that shipping season. These costs would 
include administrative expenses and all other salaries (including 
overtime and the Federal share of employee benefits), travel expenses 
(including per diem expenses), and other incidental expenses incurred 
by the inspectors in performing these services. The agreement would 
require the NPPO of Chile to deposit a certified or cashier's check 
with APHIS for the amount of these costs, as estimated by APHIS. If the 
deposit is not sufficient to meet all costs incurred by APHIS, the 
agreement would require the NPPO of Chile to deposit a certified or 
cashier's check

[[Page 13265]]

with APHIS for the amount of the remaining costs, as determined by 
APHIS, before APHIS would provide any more services related to the 
inspection and treatment of clementines, mandarins, or tangerines in 
Chile. After a final audit at the conclusion of each shipping season, 
any overpayment of funds would be returned to the NPPO of Chile or held 
on account until needed, at their option.
    Requiring the payment of costs in advance is necessary to help 
defray the costs to APHIS of providing inspection and treatment 
monitoring services in Chile.

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.
    For this proposed rule, we have prepared an economic analysis. The 
economic analysis provides a cost-benefit analysis as required by 
Executive Order 12866, as well as an analysis of the potential economic 
effects of this proposed rule on small entities, as required under 5 
U.S.C. 603. The economic analysis is summarized below. See the full 
analysis for the complete list of references used in this document. 
Copies of the full analysis are available on the APHIS Web site at 
http://www.aphis.usda.gov/ppd/rad/clementinesecon.pdf or by contacting 
the person listed under FOR FURTHER INFORMATION CONTACT. Copies of the 
economic analysis are also available for viewing in our reading room. 
(Information on the location and hours of the reading room is provided 
under the heading ADDRESSES at the beginning of this document).
    Under the Plant Protection Act (7 U.S.C. 7701-7772), the Secretary 
of Agriculture is authorized to regulate the importation of plants, 
plant products, and other articles to prevent the introduction into, or 
dissemination within, the United States of a plant pest or noxious 
weed.

Summary of Economic Analysis

    Our analysis estimates expected benefits and costs associated with 
allowing the importation of clementines, mandarins, and tangerines from 
Chile into the United States. The analysis assumes that the regulations 
will not lead to an increased risk of pest outbreaks in the United 
States. Currently, no clementines, mandarins, or tangerines are being 
imported into the United States from Chile. According to the Chilean 
Exporters' Association, 1,300 hectares are planted with clementines, 
mandarins, and tangerines in Chile, and Chile would like to export 
approximately 1,600 metric tons of clementines, mandarins, and 
tangerines to the United States. This amount is a little more than 15 
percent of Chile's total exports of these commodities in 2001 (table 
1).

  Table 1.--World Exports of Clementines, Mandarins, and Citrus Hybrids
                               From Chile
------------------------------------------------------------------------
                                                   Value       Quantity
                     Year                        (1,000 $)    (1,000 kg)
------------------------------------------------------------------------
1993..........................................         4.29            3
1994..........................................        61.78           81
1995..........................................       636.64          780
1996..........................................     1,408.64        1,951
1997..........................................     1,675.17        1,579
1998..........................................     4,177.41        4,918
1999..........................................     4,063.65        4,819
2000..........................................     4,743.93        6,896
2001..........................................     7,441.46      10,398
------------------------------------------------------------------------
Source: The U.S. Department of Agriculture's (USDA's) Foreign
  Agricultural Service, as reported by U.N. Trade Statistics. Values are
  in 2002 dollars and were deflated using the Consumer Price Index (All
  Urban Consumers) for fresh fruits, not seasonally adjusted, as
  reported by the U.S. Department of Labor's Bureau of Labor Statistics.

    Clementines and mandarins are not produced in the United States in 
commercially significant quantities. Tangerines are produced 
domestically. Most imports from Chile are expected to be clementines, 
not tangerines. An earlier economic analysis by APHIS examined the 
relationship between imports of Spanish clementines and domestically 
produced tangerines but did not find evidence of substitution. That 
analysis did not look at the relationship between Spanish clementines 
and other citrus. However, U.S. producers of other kinds of citrus--
especially California navel oranges--have expressed concerns that 
imports of Spanish clementines have taken market share and depressed 
prices for navel oranges, reflecting that the imports are marketed in 
the United States during the same season as navels.
    An increase in supply of clementines could potentially increase 
competition in the United States for domestically produced citrus, such 
as oranges and tangerines. If imports from Chile increase, U.S. 
producer prices could decline during the time when a larger supply is 
on the market. However, Chilean clementines are expected to enter the 
United States primarily between April and September, which is the off-
season for tangerines. Most of the fresh early tangerines from Florida, 
which is the largest producer of tangerines, are shipped from October 
to January, while most of the fresh Honey tangerines are shipped from 
February to May (Brown 2000).\4\ California navel oranges are marketed 
primarily from November to May, while California Valencia oranges are 
primarily marketed from April to October.
---------------------------------------------------------------------------

    \4\ Florida is the largest producer of tangerines, accounting 
for 68 percent of total domestic production annually, followed by 
California (26 percent), and Arizona (6 percent).
---------------------------------------------------------------------------

    Table 2 shows the monthly orange shipments for fresh uses of three 
major citrus producing States. Oranges include Valencia, navel, and 
early/midseason varieties. Domestic orange shipments between April and 
September comprise about 25 percent of total shipments annually. 
Although the data represent only a proportion of the production 
dedicated for fresh utilization, they provide an indication of the 
domestic orange marketing seasons for comparative purposes. The April-
September marketing period for Chilean clementines matches the 
California and Florida Valencia marketing seasons, so the clementines 
could displace some fresh market Valencia orange sales. However, the 
expected amount of 1,600 metric tons represents a small share (less 
than 2 percent) of the domestic shipment between April and September 
(99,712 metric tons). The competition with various summer fruits is 
likely to have a far greater impact. Given the small number of expected 
imports from Chile and the different marketing seasons, any potential 
impacts on U.S. citrus producers would be minimal.

[[Page 13266]]



                   Table 2.--Monthly Orange Shipments for Fresh Utilization, Average 2000-2002
----------------------------------------------------------------------------------------------------------------
                                                     Average shipments by State (metric tons)
                      Month                      ------------------------------------------------      Total
                                                    California        Florida          Texas
----------------------------------------------------------------------------------------------------------------
January.........................................           7,818          25,106           8,818          41,742
February........................................           7,076          19,182           7,652          33,910
March...........................................           9,394          18,742           5,333          33,470
April...........................................           8,091          20,545           2,485          31,121
May.............................................           8,394          19,030           1,182          28,606
June............................................           7,136          13,242               0          20,379
July............................................           5,409             545               0           5,955
August..........................................           5,652              45               0           5,697
September.......................................           4,773           2,652             530           7,955
October.........................................           4,242          23,848           5,015          33,106
November........................................           5,288          37,348           5,576          48,212
December........................................           7,561          53,500           8,848         69,909
----------------------------------------------------------------------------------------------------------------
Note: Orange shipment data for California and Arizona include only rail and piggyback (trailer-on-flat-car and
  container-on-flat-car). Truck shipment data are not available. Average California orange shipments for 2000-
  2002 represent about 5 percent of California's production for fresh utilization over the same time period.
  Arizona data are excluded (available shipment data were small in 2000-2001 and was zero in 2002). Average
  Florida and Texas shipments for 2000-2002 represent about 60 percent and 93 percent, respectively, of fresh
  production for those States. Source: USDA/AMS Fruits and Vegetable Market News.

    Most U.S. imports of clementines, mandarins, and tangerines (table 
3) currently come from Spain, which ships the commodities from mid-
September to mid-March. Chile would export these commodities to the 
United States between April and September each year. These imports 
would increase the availability of these fruits during the Spanish off-
season, which would lead to benefits for U.S. importers and consumers.

   Table 3.--U.S. World Imports of Clementines, Mandarins, and Citrus
                                 Hybrids
------------------------------------------------------------------------
                                                   Value       Quantity
                     Year                        (1,000 $)    (1,000 kg)
------------------------------------------------------------------------
1991..........................................       23,306       19,480
1992..........................................       26,219       18,112
1993..........................................       27,019       17,519
1994..........................................       30,404       20,850
1995..........................................       26,010       19,062
1996..........................................       39,976       27,404
1997..........................................       63,279       42,110
1998..........................................       60,356       43,168
1999..........................................      128,104       90,454
2000..........................................      113,953       96,296
2001..........................................      131,711      75,365
------------------------------------------------------------------------
Source: Import data are from the USDA's Foreign Agricultural Service, as
  reported by U.N. Trade Statistics. Values are in 2002 dollars and were
  deflated using the Consumer Price Index (All Urban Consumers) for
  fresh fruits, not seasonally adjusted, as reported by the U.S.
  Department of Labor's Bureau of Labor Statistics.

    To capture the impact on U.S. importers, an inverse demand curve 
characterizing the U.S. demand for imported clementines, tangerines, 
and mandarin oranges was estimated. The demand for the imported 
commodities can be related to the export prices and quantities for 
Spanish fruits exported to all markets except the United States. 
Spanish export data were used because over 83 percent of U.S. imports 
of these fruits was from Spain during 1997-2001. Data on imports for 
1991-2001 were used to analyze the expected impacts for the 10-year 
period (2004-2013) subsequent to the entry of the imports from Chile.
    Imports from Chile were assumed to grow 13.55 percent each year, 
which was the average annual growth during 1999-2001 in Chile's exports 
to Japan, its best export market, and that imports for 2004 will be 
1,595 metric tons (table 4). It was assumed that U.S. imports from 
sources other than Chile will grow 6.46 percent per year, which was the 
import growth during 1999-2000, starting from an estimate of 87,372 
metric tons imported for 2002, which was the average import quantity 
during 1999-2001 (table 3).

 Table 4.--Estimated U.S. Imports of Clementine, Mandarin, and Tangerine
                         With and Without Chile
------------------------------------------------------------------------
                                                  Clementine, mandarin,
                                                  and tangerine imports
                                                       (1,000 kg)
                     Year                      -------------------------
                                                  Without
                                                   Chile      With Chile
------------------------------------------------------------------------
2004..........................................       99,020      100,620
2005..........................................      105,420      107,230
2006..........................................      112,230      114,280
2007..........................................      119,470      121,810
2008..........................................      127,190      129,840
2009..........................................      135,400      138,420
2010..........................................      144,150      147,570
2011..........................................      153,460      157,340
2012..........................................      163,370      167,780
2013..........................................      173,920      178,930
------------------------------------------------------------------------

    Estimated regulatory benefits for U.S. importers were given by the 
area under the inverse import demand curve above estimated price with 
Chilean imports minus the area under the import demand curve above 
estimated price without Chilean imports. This method provided annual 
estimates of gross revenue increases received by U.S. importers. 
Expected future gross revenues (table 5) were discounted using a 5.34 
percent annual interest rate, which was estimated using annual income 
and rate of return data for U.S. farmers during 1966-1994.\5\ The 
annualized increase in gross revenues received by U.S. importers of 
clementines, mandarins, and tangerines under the regulations was an 
estimated $0.59 million per year during 2004-2013. This suggests that 
the regulation will yield economic benefits to U.S. importers during 
the period in which it remains in force. Consumers also benefit from 
the greater availability of clementines during the off-season for 
domestic production and other imports.

[[Page 13267]]

The proposed rule will result in net benefits to society given that the 
new imports are not expected to significantly compete with domestic 
citrus production and will not lead to pest introductions.
---------------------------------------------------------------------------

    \5\ Lence, S.H. ``Using Consumption and Asset Return Data to 
Estimate Farmers' Time Preferences and Risk Attitudes.'' American 
Journal of Agricultural Economics. 82(2000): 934-947.

                              Table 5.--Impact on Gross Revenues of U.S. Importers
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                              Year                                  With Chile     Without Chile       Gains
----------------------------------------------------------------------------------------------------------------
2004............................................................           $7.48           $7.24           $0.24
2005............................................................            8.50            8.21            0.28
2006............................................................            9.65            9.31            0.34
2007............................................................           10.96           10.55            0.42
2008............................................................           12.46           11.95            0.50
2009............................................................           14.16           13.55            0.61
2010............................................................           16.09           15.35            0.74
2011............................................................           18.29           17.40            0.89
2012............................................................           20.80           19.72            1.08
2013............................................................           23.66           22.35            1.31
Annualized discounted sum of gross revenues.....................           13.46           12.86            0.59
----------------------------------------------------------------------------------------------------------------

Regulatory Impacts on Small Entities

    According to the 1997 Census of Agriculture, there were 17,000 
citrus producers (excluding grapefruit, lemon, and lime producers) in 
the United States. The U.S. Small Business Administration defines a 
small citrus producer as one with annual gross revenues no greater than 
$0.75 million. The USDA's National Agricultural Statistics Service 
reported that 3.8 percent of U.S. fruit and tree nut producers 
accounted for 95.1 percent of sales in 1982, 4.2 percent of fruit and 
tree nut producers accounted for 96.2 percent of sales in 1987, and 4.6 
percent of fruit and tree nut producers accounted for 96.7 percent of 
sales in 1992. These data indicate that the majority of U.S. citrus 
producers are small entities. Our economic analysis suggests that 
Chilean imports will not significantly compete with domestic citrus 
production such as tangerines and navel oranges because the imports 
will be shipped largely during the off-season for U.S. production of 
these fruits. Although the Chilean imports are expected to overlap with 
some domestic orange shipments such as Valencia oranges, the amount to 
be imported is expected to be a small percentage of the total U.S. 
orange shipments during the importing months. As a result, the 
importation of clementines, mandarins, and tangerines from Chile would 
likely have minimal adverse impact on domestic citrus producers, large 
or small.
    Importers of clementines, mandarins, and tangerines would likely 
benefit under the proposed regulations. The number of importers that 
can be classified as small is not known. However, the proposed 
regulations would not lead to adverse economic impact on small entities 
in these industries (fresh fruit and vegetable wholesalers with no more 
than 100 employees, NAICS 422480; wholesalers and other grocery stores 
with annual gross revenues no greater than $23 million, NAICS 445110; 
warehouse clubs and superstores with annual gross revenues no greater 
than $23 million, NAICS 452910; and fruit and vegetable markets with 
gross revenues no greater than $6 million, NAICS 445230).
    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 clementines, mandarins, and 
tangerines to be imported into the United States from Chile. If this 
proposed rule is adopted, State and local laws and regulations 
regarding clementines, mandarins, and tangerines imported under this 
rule would 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 would remain in foreign commerce 
until sold to the ultimate consumer. The question of when foreign 
commerce ceases in other cases must be addressed on a case-by-case 
basis. If this proposed rule is adopted, no retroactive effect 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 has been prepared for this proposed 
rule. The assessment provides a basis for the conclusion that the 
importation of clementines, mandarins, and tangerines under the 
conditions specified in this proposed rule would not present a risk of 
introducing or disseminating plant pests or diseases and would not have 
a significant impact on the quality of the human environment.
    The environmental assessment was 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).
    The environmental assessment is available for viewing on the 
Internet at http://www.aphis.usda.gov/ppd/es/ppqdocs.html. Copies of 
the environmental assessment are also available for public inspection 
in our reading room. (Information on the location and hours of the 
reading room is provided under the heading ADDRESSES at the beginning 
of this document). In addition, copies may be obtained by calling or 
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. 02-081-2. 
Please send a copy of your comments to: (1) Docket No. 02-081-2, 
Regulatory Analysis and Development, PPD, APHIS, Station 3C71, 4700 
River Road

[[Page 13268]]

Unit 118, Riverdale, MD 20737-1238, and (2) Clearance Officer, OCIO, 
USDA, room 404-W, 14th Street and Independence Avenue SW., Washington, 
DC 20250. A comment to OMB is best assured of having its full effect if 
OMB receives it within 30 days of publication of this proposed rule.
    This proposed rule would amend the regulations to allow the 
importation of clementines, mandarins, and tangerines into the United 
States from Chile, provided certain conditions were met. These proposed 
changes would require, among other things, that production sites 
participating in an export program from Chile to the United States 
would have to register with the NPPO of Chile and be certified as low 
prevalence production sites. Each consignment of clementines, 
mandarins, and tangerines would be inspected by APHIS and the NPPO of 
Chile, and a phytosanitary certificate would have to be issued before 
the consignment could leave Chile. In addition, Chile would have to 
enter into a trust fund agreement with the United States before 
beginning any export program.
    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 
submissions of responses).
    Estimate of burden: Public reporting burden for this collection of 
information is estimated to average 0.0833 hours per response.
    Respondents: Growers, shippers, and Chilean health officials.
    Estimated annual number of respondents: 10.
    Estimated annual number of responses per respondent: 12.
    Estimated annual number of response: 120.
    Estimated total annual burden on respondents: 10 hours. (Due to 
averaging, the total annual burden hours may not equal the product of 
the annual number of responses multiplied by the reporting burden per 
response.)
    Copies of this information collection can be obtained from Mrs. 
Celeste Sickles, APHIS' Information Collection Coordinator, at (301) 
734-7477.

Government Paperwork Elimination Act Compliance

    The Animal and Plant Health Inspection Service is committed to 
compliance with the Government Paperwork Elimination Act (GPEA), which 
requires Government agencies in general to provide the public the 
option of submitting information or transacting business electronically 
to the maximum extent possible. For information pertinent to GPEA 
compliance related to this proposed rule, please contact Mrs. Celeste 
Sickles, APHIS' Information Collection Coordinator, at (301) 734-7477.

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, 7 CFR part 319 would be amended as follows:

PART 319--FOREIGN QUARANTINE NOTICES

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

    Authority: 7 U.S.C. 450 and 7701-7772; 21 U.S.C. 136 and 136a; 7 
CFR 2.22, 2.80, and 371.3.

    2. A new Sec.  319.56-2ll would be added to read as follows:


Sec.  319.56-2ll  Conditions governing the importation of clementines, 
mandarins, and tangerines from Chile.

    Clementines (Citrus reticulata Blanco var. Clementine), mandarins 
(Citrus reticulata Blanco), and tangerines (Citrus reticulata Blanco) 
may be imported into the United States from Chile only under the 
following conditions:
    (a) The fruit must be accompanied by a specific written permit 
issued in accordance with Sec.  319.56-3.
    (b) If the fruit is produced in an area of Chile where 
Mediterranean fruit fly (Ceratatis capitata) is known to occur, the 
fruit must be cold treated in accordance with the Plant Protection and 
Quarantine (PPQ) Treatment Manual, which is incorporated by reference 
at Sec.  300.1 of this chapter. Fruit for which cold treatment is 
required must be accompanied by documentation indicating that the cold 
treatment was initiated in Chile (a PPQ Form 203 or its equivalent may 
be used for this purpose).
    (c) The fruit must either be produced and shipped under the systems 
approach described in paragraph (d) of this section or fumigated in 
accordance with paragraph (e) of this section.
    (d) Systems approach. The fruit may be imported without fumigation 
for Brevipalpus chilensis if it meets the following conditions:
    (1) Production site registration. The production site where the 
fruit is grown must be registered with the national plant protection 
organization (NPPO) of Chile. To register, the production site must 
provide Chile's NPPO with the following information: Production site 
name, grower, municipality, province, region, area planted to each 
species, number of plants/hectares/species, and approximate date of 
harvest. Registration must be renewed annually.
    (2) Low prevalence production site certification. Between 1 and 30 
days prior to harvest, random samples of fruit must be collected from 
each registered production site under the direction of Chile's NPPO. 
These samples must undergo a pest detection and evaluation method as 
follows: The fruit and pedicels must be washed using a flushing method, 
placed in a 20 mesh sieve on top of a 200 mesh sieve, sprinkled with a 
liquid soap and water solution, washed with water at high pressure, and 
washed with water at low pressure. The process must then be repeated. 
The contents of the sieves must then be placed on a Petri dish and 
analyzed for the presence of live B. chilensis mites. If a single live 
B. chilensis mite is found, the production site will not qualify for 
certification as a low prevalence production site and will be eligible 
to export fruit to the United States only if the fruit is fumigated in 
accordance with paragraph (e) of this section. Each production site may 
have only one opportunity per harvest season to qualify as a low 
prevalence production site, and certification of low prevalence will be 
valid for one harvest season only. The NPPO of Chile will present a 
list of certified production sites to APHIS.
    (3) Post-harvest processing. After harvest and before packing, the 
fruit must be washed, rinsed in a chlorine bath, washed with detergent 
with brushing using bristle rollers, rinsed with a hot water shower 
with brushing using bristle rollers, predried at room temperature, 
waxed, and dried with hot air.

[[Page 13269]]

    (4) Phytosanitary inspection. The fruit must be inspected in Chile 
at an APHIS-approved inspection site under the direction of APHIS 
inspectors in coordination with the NPPO of Chile after the post-
harvest processing. A biometric sample will be drawn and examined from 
each consignment of fruit, which may represent multiple grower lots 
from different packing sheds. Clementines, mandarins, or tangerines in 
any consignment may be shipped to the United States only if the 
consignment passes inspection as follows:
    (i) Fruit presented for inspection must be identified in the 
shipping documents accompanying each lot of fruit that identify the 
production site(s) where the fruit was produced and the packing shed(s) 
where the fruit was processed. This identity must be maintained until 
the fruit is released for entry into the United States.
    (ii) A biometric sample of boxes from each consignment will be 
selected and the fruit from these boxes will be visually inspected for 
quarantine pests, and a portion of the fruit will be washed and the 
collected filtrate will be microscopically examined for B. chilensis.
    (A) If a single live B. chilensis mite is found, the fruit will be 
eligible for importation into the United States only if it is fumigated 
in accordance with paragraph (e) of this section. The production site 
will be suspended from the low prevalence certification program and all 
subsequent lots of fruit from the production site of origin will be 
required to be fumigated as a condition of entry to the United States 
for the remainder of the shipping season.
    (B) If inspectors find evidence of any other quarantine pest, the 
fruit in the consignment will remain eligible for importation into the 
United States only if an authorized treatment for the pest is available 
in the PPQ Treatment Manual and the entire consignment is treated for 
the pest in Chile under APHIS supervision.
    (iii) Each consignment of fruit must be accompanied by a 
phytosanitary certificate issued by the NPPO of Chile that contains an 
additional declaration stating that the fruit in the consignment meets 
the conditions of Sec.  319.56-2ll(d).
    (e) Approved fumigation. Clementines, mandarins, or tangerines that 
do not meet the conditions of paragraph (d) of this section may be 
imported into the United States if the fruit is fumigated with methyl 
bromide for B. chilensis in Chile in accordance with the PPQ Treatment 
Manual, which is incorporated by reference at Sec.  300.1 of this 
chapter. An APHIS inspector will monitor the fumigation of the fruit 
and will prescribe such safeguards as may be necessary for unloading, 
handling, and transportation preparatory to fumigation. The fruit must 
be inspected in Chile at an APHIS-approved inspection site under the 
direction of APHIS inspectors in coordination with the NPPO of Chile 
after the completion of treatment. The final release of the fruit for 
entry into the United States will be conditioned upon compliance with 
prescribed safeguards and required treatment.
    (f) Trust fund agreement. Clementines, mandarins, and tangerines 
may be imported into the United States under this section only if the 
NPPO of Chile has entered into a trust fund agreement with APHIS. This 
agreement requires the NPPO of Chile to pay in advance of each shipping 
season all costs that APHIS estimates it will incur in providing 
inspection and treatment monitoring services in Chile during that 
shipping season. These costs include administrative expenses and all 
salaries (including overtime and the Federal share of employee 
benefits), travel expenses (including per diem expenses), and other 
incidental expenses incurred by APHIS in performing these services. The 
agreement requires the NPPO of Chile to deposit a certified or 
cashier's check with APHIS for the amount of these costs, as estimated 
by APHIS. If the deposit is not sufficient to meet all costs incurred 
by APHIS, the agreement further requires the NPPO of Chile to deposit 
with APHIS a certified or cashier's check for the amount of the 
remaining costs, as determined by APHIS, before APHIS will provide any 
more services related to the inspection and treatment of clementines, 
mandarins, and tangerines in Chile. After a final audit at the 
conclusions of each shipping season, any overpayment of funds would be 
returned to the NPPO of Chile, or held on account until needed, at 
their option.

    Done in Washington, DC, this 16th day of March 2004.
Bill Hawks,
Under Secretary for Marketing and Regulatory Programs.
[FR Doc. 04-6325 Filed 3-19-04; 8:45 am]
BILLING CODE 3410-34-P