[Federal Register Volume 69, Number 237 (Friday, December 10, 2004)]
[Rules and Regulations]
[Pages 71691-71697]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27075]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 69, No. 237 / Friday, December 10, 2004 / 
Rules and Regulations  

[[Page 71691]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 319

[Docket No. 02-081-3]
RIN 0579-AB77


Importation of Clementines, Mandarins, and Tangerines From Chile

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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

SUMMARY: We are amending the 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 provides 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.

EFFECTIVE DATE: January 10, 2005.

FOR FURTHER INFORMATION CONTACT: Ms. Jeanne VanDersal, Import 
Specialist, Phytosanitary Issues Management Staff, PPQ, APHIS, 4700 
River Road Unit 140, Riverdale, MD 20737-1236; (301) 734-6799.

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 without methyl bromide fumigation. Chile also 
requested that we allow methyl bromide fumigation to remain an option 
for clementines, mandarins, and tangerines that do not meet the 
requirements of the systems approach or in case pests are found during 
routine inspections.
    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 a draft pest risk assessment and an accompanying 
risk management document that evaluated the risks associated with 
importing citrus from Chile. We solicited comments concerning those 
documents for 60 days ending December 23, 2002, and received no 
comments by that date. We subsequently amended the pest risk assessment 
in March 2004 to include information related to a Mediterranean fruit 
fly (Medfly) trapping in Chile in April 2003.
    On March 22, 2004, we published in the Federal Register (69 FR 
13262-13269, Docket No. 02-081-2) a proposal to amend the regulations 
to allow the importation, under certain conditions, of clementines, 
mandarins, and tangerines from Chile into the United States.
    We solicited comments concerning our proposal for 60 days ending 
May 21, 2004. We received five comments by that date. They were from 
exporters, researchers, and representatives of State, local, and 
foreign governments. One commenter supported the proposed rule as 
written. The remaining commenters raised specific issues regarding the 
proposed rule. Those issues are discussed below by topic.
    We proposed to allow the importation of clementines, mandarins, and 
tangerines from Chile subject either to the systems approach described 
in proposed Sec.  319.56-2ll(d) or to fumigation with methyl bromide in 
Chile in accordance with proposed Sec.  319.56-2ll(e). We also proposed 
to allow the importation of clementines, mandarins, and tangerines 
originating from areas in Chile where Medfly is known to occur provided 
they are subject to the cold treatment schedules prescribed in the 
Plant Protection and Quarantine (PPQ) Treatment Manual which is 
incorporated by reference at 7 CFR 300.1, ``Plant Protection and 
Quarantine Treatment Manual.''
    The national plant protection organization of Chile and the Chilean 
Exporters Association stated that the fumigation option should provide 
for the treatment to take place either in Chile or at the port of first 
arrival in the United States, noting that we allow this choice of 
treatment locations for other commodities being imported into the 
United States from Chile.
    In response to this comment, Sec.  319.56-2mm(e) of this final rule 
allows fruit requiring methyl bromide fumigation as a condition of 
entry to be fumigated in either Chile or the United States.
    In our proposed rule, Sec.  319.56-2ll(e) stated that fumigated 
fruit must be inspected in Chile at an APHIS-approved inspection site 
under the direction of APHIS inspectors in coordination with the 
national plant protection organization of Chile. Two commenters stated 
that an inspection following methyl bromide fumigation is unnecessary 
because the treatment's efficacy against target pests (Brevipalpus 
chilensis, Proeulia auraria, and Proeulia chrysopteris) has already 
been scientifically established.
    We agree with the commenters that methyl bromide fumigation does 
address the risk of all three of the targeted pests and that post-
fumigation inspection is not necessary to ensure phytosanitary 
security. Therefore, we have removed the proposed post-fumigation 
inspection requirement from paragraph (e) in this final rule. With 
respect to Proeulia auraria and Proeulia chrysopteris, we note that we 
incorrectly referred to these pests in the background information of 
the proposed rule as fruit leaf folders, whereas they are more 
correctly identified as tortricid leafrollers.
    Two commenters stated that we referred to treatment schedule T104-
a-1 in the proposed rule, but published T101-n-2-1. The commenters did 
not take issue with the prescribed treatment schedule itself, but 
simply questioned whether we published the right treatment schedule.
    We did not publish T104-a-1 in its entirety in the proposed rule, 
which is

[[Page 71692]]

what led to the confusion surrounding the treatment schedules. Schedule 
T104-a-1 includes a note that all citrus must be fumigated at a minimum 
of 50 [deg]F, which is why we omitted the lower temperature options in 
the treatment schedule that was published in the proposed rule. Without 
the lower temperature options, the treatment appears to be the same as 
T101-n-2-1.
    One commenter stated that, in the supplementary information of the 
proposed rule, Chile's Metropolitan Region is incorrectly listed as an 
area where Medfly is known to exist. The commenter added that Medfly 
was completely eradicated from this area and verified by the United 
States Department of Agriculture (USDA) officials in December 2003.
    The Arica Province is the only area in Chile where Medfly is known 
to occur; the commenter is correct that the Medfly outbreak in the 
Metropolitan Region has been eradicated.
    One commenter stated that a production site's ``low prevalence'' 
status should only be changed as a result of an inspection of the site 
itself by USDA officials. The commenter objected to the provisions of 
proposed Sec.  319.56-211(d)(4) under which a production site's low 
prevalence status would be suspended for the remainder of the shipping 
season if a single Brevipalpus chilensis mite is found during the 
required pre-export phytosanitary inspection and contended that the 
term ``low prevalence'' in itself allows for the existence of some 
pests. The commenter also stated that the established procedure with 
other commodities and countries allows for such a shipment to continue 
to its destination provided that it undergoes an approved quarantine 
treatment. Further, the commenter claimed that suspending a production 
site's certification is unnecessary as long as a treatment that is 
efficacious against the targeted pest can be applied to a specific 
shipment before it is released for entry into U.S. commerce.
    The systems approach requires certain actions to be taken by fruit 
producers to control Brevipalpus chilensis in the field in addition to 
packinghouses. The commenter is correct that production sites can be 
certified as ``low prevalence'' with the understanding that some 
Brevipalpus chilensis may be present. However, no single Brevipalpus 
chilensis mite should be present on the fruit after the fruit has been 
through the post-harvest processing procedures, which include washing, 
rinsing in a chlorine bath with brushing using bristle rollers, and 
waxing. If, after undergoing these procedures, a Brevipalpus chilensis 
mite is found, it would indicate a greater problem with the 
implementation of the systems approach and the production site and/or 
the packinghouse would need to be investigated. Suspending the site's 
certification allows for us to conduct such an investigation and for 
the site to correct any errors in its implementation of the systems 
approach. The commenter is correct that a site should be allowed to 
continue shipping to the United States because an efficacious treatment 
against Brevipalpus chilensis exists. That is why this rule provides 
that a site that has lost its eligibility to ship under the systems 
approach may continue shipping to the United States using methyl 
bromide fumigation for the remainder of the shipping season.
    One commenter questioned the appropriateness of using a pest risk 
assessment developed for Medfly in Peru for Chile.
    In the pest risk assessment and risk management document developed 
for the proposed rule, we stated that a recent assessment examining 
Medfly in Peru was applicable to Chile because the pest and hosts from 
the two countries are the same and the climatic conditions and 
environments are similar. The only portion of the pest risk assessment 
for Peru that was adapted for the pest risk assessment for Chile was 
the section pertaining to the risk ratings for Medfly, which are 
considered high for both Peru and Chile and would have been no 
different if the section was redone for Chile.
    One commenter stated that our proposal failed to address the risk 
posed by fruit flies and that interceptions of Medfly in Chile in both 
2003 and 2004 should be cause to stop shipments of citrus from Chile.
    We do not agree with this commenter's statement that we failed to 
address fruit fly concerns in our proposed rule. While the proposed 
rule dealt largely with describing a systems approach for Brevipalpus 
chilensis, it also included provisions requiring that eligible citrus 
from regions in Chile where Medfly is known to occur be cold treated in 
accordance with the PPQ Treatment Manual. We acknowledge that Medfly 
was intercepted in Chile in both 2003 and 2004 and we will consider any 
region in Chile where Medfly is captured to be subject to these 
provisions until it has been eradicated. We believe that cold treatment 
will prevent the introduction of Medfly into the United States.
    One commenter stated that his company had developed a new 
fumigation treatment using pure phosphine at low temperatures that 
would not damage fruit as methyl bromide fumigation can. The commenter 
requested that we add this new treatment to the regulations as an 
alternative to methyl bromide fumigation.
    APHIS would need to evaluate a treatment's effectiveness before 
listing it as an approved treatment. The commenter is welcome to send 
information pertaining to the treatment and its efficacy against 
targeted pests to the person listed under FOR FURTHER INFORMATION 
CONTACT. If the treatment is found to be efficacious against a specific 
pest or pests, we may propose to add it to the regulations as an 
approved treatment and present the proposal for public comment.

Miscellaneous

    In our March 2004 proposed rule, we proposed to add the conditions 
governing the importation of clementines, mandarins, and tangerines 
from Chile as Sec.  319.56-211. In this final rule, those conditions 
are added as Sec.  319.56-2mm.
    Therefore, for the reasons given in the proposed rule and in this 
document, we are adopting the proposed rule as a final rule, with the 
changes discussed in this document.

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.
    For this 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 rule on small entities, as required under the Regulatory 
Flexibility Act. 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 
calling or writing the person listed under FOR FURTHER INFORMATION 
CONTACT. Copies of the economic analysis are also available for viewing 
in our reading room, 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,

[[Page 71693]]

please call (202) 690-2817 before coming.

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 this change in 
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 domestic 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).\1\ California navel oranges 
are marketed primarily from November to May, while California Valencia 
oranges are primarily marketed from April to October.
---------------------------------------------------------------------------

    \1\ 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 shipments 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.

                   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

[[Page 71694]]

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

    Expected future gross revenues (table 5) were discounted by using 
real interest rates of 3 percent and 7 percent as recommended by the 
Office of Management and Budget. For further sensitivity analysis, a 
rate of 5.34 percent, which was estimated using annual income and rate 
of return data for U.S. farmers during 1966-1994, is also provided.\2\ 
The annualized increase in gross revenues received by U.S. importers of 
clementines, mandarins, and tangerines under this rule was an estimated 
$0.60 million per year during 2004-2013, depending on the interest rate 
chosen. This suggests that the rule 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. The 
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.
---------------------------------------------------------------------------

    \2\ Lence, S.H. ``Using Consumption and Asset Return Data to 
Estimate Farmers' Time Preferences and Risk Attitudes.''

                              Table 5.--Impact on Gross Revenues of U.S. Importers
                                                  [$ millions]
----------------------------------------------------------------------------------------------------------------
                       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

[[Page 71695]]

 
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:
    3%............................................          $13.78          $13.16           $0.61
    5.34%.........................................          $13.46          $12.86           $0.59
    7%............................................          $13.24          $12.66           $0.58
----------------------------------------------------------------------------------------------------------------

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 will 
likely have minimal adverse impact on domestic citrus producers, large 
or small.
    Importers of clementines, mandarins, and tangerines will likely 
benefit under this rule. The number of importers that can be classified 
as small is not known. However, the rule will not lead to an 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 will 
not have a significant economic impact on a substantial number of small 
entities.

Executive Order 12988

    This rule allows clementines, mandarins, and tangerines to be 
imported into the United States from Chile. State and local laws and 
regulations regarding clementines, mandarins, and tangerines 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 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. 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.

Use of Methyl Bromide

    The United States is fully committed to the objectives of the 
Montreal Protocol, including the reduction and ultimately the 
elimination of reliance on methyl bromide for quarantine and pre-
shipment uses in a manner that is consistent with the safeguarding of 
U.S. agriculture and ecosystems. APHIS reviews its methyl bromide 
policies and their effect on the environment in accordance with the 
National Environmental Policy Act of 1969, as amended (42 U.S.C. 4321 
et seq.) and Decision XI/13 (paragraph 5) of the 11th Meeting of the 
Parties to the Montreal Protocol, which calls on the Parties to review 
their ``national plant, animal, environmental, health, and stored 
product regulations with a view to removing the requirement for the use 
of methyl bromide for quarantine and pre-shipment where technically and 
economically feasible alternatives exist.''
    The United States Government encourages methods that do not use 
methyl bromide to meet phytosanitary standards where alternatives are 
deemed to be technically and economically feasible. In some 
circumstances, however, methyl bromide continues to be the only 
technically and economically feasible treatment against specific 
quarantine pests. In addition, in accordance with Montreal Protocol 
Decision XI/13 (paragraph 7), APHIS is committed to promoting and 
employing gas recapture technology and other methods whenever possible 
to minimize harm to the environment caused by methyl bromide emissions. 
As noted above, we welcome data or other information regarding other 
treatments that may be efficacious and technically and economically 
feasible that we may consider as alternatives to methyl bromide.

National Environmental Policy Act

    An environmental assessment and finding of no significant impact 
(FONSI) have been prepared for this rule. The assessment provides a 
basis for the conclusion that the importation of clementines, 
mandarins, and tangerines under the conditions specified in this rule 
will not have a significant impact on the quality of the human 
environment. Based on the finding of no significant impact, the 
Administrator of the Animal and Plant Health Inspection Service has 
determined that an environmental impact statement need not be prepared.
    The environmental assessment and FONSI were prepared in accordance 
with: (1) The National Environmental Policy Act of 1969 (NEPA), as 
amended

[[Page 71696]]

(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 and FONSI may be viewed on the 
Internet at http://www.aphis.usda.gov/ppq/enviro_docs/chil.html. 
Copies of the environmental assessment and FONSI are also available for 
public inspection in our reading room, 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. 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 the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.), the information collection or recordkeeping requirements 
included in this rule have been approved by the Office of Management 
and Budget (OMB) under OMB control number 0579-0242.

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 rule, please contact Mrs. Celeste Sickles, 
APHIS' Information Collection Coordinator, at (301) 734-7477.

List of Subjects in 7 CFR Part 319

    Coffee, Cotton, Fruits, Honey, Imports, Logs, Nursery stock, Plant 
diseases and pests, Quarantine, Reporting and recordkeeping 
requirements, Rice, Vegetables.

0
Accordingly, 7 CFR part 319 is amended as follows:

PART 319--FOREIGN QUARANTINE NOTICES

0
1. The authority citation for part 319 continues 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.


0
2. A new Sec.  319.56-2mm is added to read as follows:


Sec.  319.56-2mm  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.
    (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 Chile 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

[[Page 71697]]

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.  319.56-2mm(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 either in 
Chile or at the port of first arrival in the United States with methyl 
bromide for B. chilensis 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 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.

(Approved by the Office of Management and Budget under control 
number 0579-0242.)

    Done in Washington, DC, this 23rd day of November, 2004.
Peter Fernandez,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 04-27075 Filed 12-9-04; 8:45 am]
BILLING CODE 3410-34-P