[Federal Register Volume 71, Number 62 (Friday, March 31, 2006)]
[Rules and Regulations]
[Pages 16193-16198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-3126]



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  Federal Register / Vol. 71, No. 62 / Friday, March 31, 2006 / Rules 
and Regulations  

[[Page 16193]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 319

[Docket No. 04-082-2]


Importation of Christmas Cactus and Easter Cactus in Growing 
Media From the Netherlands and Denmark

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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

SUMMARY: We are amending the regulations governing the importation of 
plants and plant products by adding Christmas cactus (Schlumbergera 
spp.) and Easter cactus (Rhipsalidopsis spp.) from the Netherlands and 
Denmark to the list of plants that may be imported in an approved 
growing medium subject to specified growing, inspection, and 
certification requirements. We are taking this action in response to 
requests from the Netherlands and Denmark and after determining that 
Christmas cactus and Easter cactus established in growing media can be 
imported without resulting in the introduction into the United States 
or the dissemination within the United States of a plant pest or 
noxious weed. This change will allow Christmas cactus and Easter cactus 
established in growing media to be imported into the United States from 
the Netherlands and Denmark under certain conditions.

DATES: Effective Date: May 1, 2006.

FOR FURTHER INFORMATION CONTACT: Dr. Arnold T. Tschanz, Senior Staff 
Officer, Commodity Import Analysis and Operation Staff, PPQ, APHIS, 
4700 River Road, Unit 133, Riverdale, MD 20737-1236; (301) 734-5306.

SUPPLEMENTARY INFORMATION:

Background

    The regulations in 7 CFR part 319 prohibit or restrict the 
importation into the United States of certain plants and plant products 
to prevent the introduction of plant pests and noxious weeds. The 
regulations in ``Subpart-Nursery Stock, Plants, Roots, Bulbs, Seeds, 
and Other Plant Products,'' Sec. Sec.  319.37 through 319.37-14 
(referred to below as the regulations) contain, among other things, 
prohibitions and restrictions on the importation of plants, plant 
parts, and seeds for propagation.
    The regulations currently allow the importation of Christmas cactus 
(Schlumbergera spp.) and Easter cactus (Rhipsalidopsis spp.) from all 
countries of the world, provided that the plants are (1) free of sand, 
soil, earth, and other growing media, (2) accompanied by phytosanitary 
certificate of inspection, (3) imported under a permit issued by the 
Animal and Plant Health Inspection Service (APHIS), and (4) imported 
into a Federal plant inspection station listed in Sec.  319.37-14(b), 
where they are subject to inspection by APHIS. Such plants are imported 
bare-rooted or as rootless cuttings into the United States, and are 
rooted and/or potted for sale by U.S. nurseries.
    In 1994, the governments of the Netherlands and Denmark requested 
that APHIS consider amending the regulations to allow Christmas cactus 
and Easter cactus to be imported into the United States established in 
growing media under the provisions of Sec.  319.37-8(e). These 
countries currently export cuttings and bare-rooted Cactaceae plants to 
the United States.
    Under Sec.  412(a) of the Plant Protection Act, the Secretary of 
Agriculture may prohibit or restrict the importation and entry of any 
plant or plant product if the Secretary determines that the prohibition 
or restriction is necessary to prevent the introduction into the United 
States or the dissemination within the United States of a plant pest or 
noxious weed. The Secretary has determined that it is not necessary to 
prohibit the importation of Christmas cactus and Easter cactus from the 
Netherlands and Denmark that are established in an approved growing 
medium in order to prevent the introduction into the United States or 
the dissemination within the United States of a plant pest or noxious 
weed. This determination is based on the findings of pest risk analyses 
and the Secretary's judgment that the application of the measures 
required under Sec.  319.37-8(e) will prevent the introduction or 
dissemination of plant pests and noxious weeds into the United States.
    Accordingly, on April 27, 2005, we published in the Federal 
Register (70 FR 21679-21682, Docket No. 04-082-1) a proposal \1\ to 
amend the regulations governing the importation of plants and plant 
products by adding Christmas cactus (Schlumbergera spp.) and Easter 
cactus (Rhipsalidopsis spp.) from the Netherlands and Denmark to the 
list of plants that may be imported in an approved growing medium 
subject to specified growing, inspection, and certification 
requirements. We solicited comments concerning our proposal for 60 days 
ending June 27, 2005. We received three comments by that date. They 
were from growers and a nursery association. The comments are discussed 
below.
---------------------------------------------------------------------------

    \1\ To view the proposed rule, pest risk analyses, and the 
comments we received, go to http://www.regulations.gov, click on the 
``Advanced Search'' tab, and select ``Docket Search.'' In the Docket 
ID field, enter APHIS-2005-0040, then click on ``Submit.'' Clicking 
on the Docket ID link in the search results page will produce a list 
of all documents in the docket.
---------------------------------------------------------------------------

    One commenter stated that the importation of Christmas cactus and 
Easter cactus in growing media should be prohibited because it could 
result in the introduction of a quarantine pest. The commenter said 
that any potential for introduction of any pest should be ruled out 
before a plant in growing media is allowed entry. Another commenter 
stated that there may be pests or disease organisms on plants that are 
not known at this time and, therefore, are not addressed by the 
growing, inspection, and certification requirements of the regulations.
    The purpose of conducting an analysis of the risk posed by imported 
agricultural commodities is to evaluate available scientific evidence 
and to provide an evaluation of the risks associated with the 
importation of those commodities and the measures available to mitigate 
any identified risks. APHIS can only make a determination as to whether 
or not to allow the importation of a particular commodity based on the 
current state of scientific knowledge. In this case, we worked closely 
with the Netherlands and Denmark to develop the lists of pests that are 
analyzed in the

[[Page 16194]]

pest risk analyses. We also consulted applicable scientific literature 
and reviewed APHIS records to determine what pests have been 
intercepted on imported Christmas cactus and Easter cactus.
    While we do not believe there is a shortage of appropriate 
scientific information in this specific case, if APHIS were to regulate 
the trade of agricultural commodities based on the risk posed by 
unknown factors, such an action could be viewed as being arbitrary and 
contrary to the international trade agreements to which the United 
States is a signatory, which could potentially affect the export 
markets for our own domestically produced commodities. Under the Plant 
Protection Act, APHIS protects American agriculture while facilitating 
the trade of agricultural commodities. There is always some uncertainty 
associated with the risk posed by imported agricultural products, and 
if zero risk were the standard applied, there would likely be no 
international trade in agricultural products. While we can never be 
certain that our methods, regulations, and policies will exclude pests 
100 percent of the time, our goal is to do just that, to the extent 
practicable. We are confident that the measures required under this 
rule appropriately address the risks associated with Christmas cactus 
and Easter cactus imported from the Netherlands and Denmark in approved 
growing media. Our judgment is supported by the fact that bare-rooted 
Christmas cactus and Easter cactus and the growing media in which they 
will be imported have separately been imported from the Netherlands and 
Denmark with no known associated pest problems. Given that the plants 
in growing media will be subject to a number of additional requirements 
that do not apply to bare-rooted plants, we believe that the risk posed 
by known and unknown pests is appropriately reduced, to the extent 
practicable, by the measures in Sec.  319.37-8(e).
    One commenter stated that the use of clean stock and phytosanitary 
greenhouse production programs do not always provide effective control 
of Fusarium diseases. The commenter noted that one of the two major 
growers from the Netherlands has admitted to having difficulty 
controlling this disease on both Christmas cactus and Easter cactus. 
The commenter stated that, if the disease was introduced in the United 
States, there is no guarantee it could be eradicated and that domestic 
growers, which tend to be small operations, are more vulnerable to the 
loss of their stock as a result of the introduction of pests or 
diseases and would bear the financial burden of any quarantine. Another 
commenter stated that Fusarium is more prevalent and active in warm 
weather. The commenter suggested that APHIS require that plants be 
rooted and grown for a minimum of 6 consecutive months so that the 
plants would be growing during favorable conditions for at least a 
portion of their life.
    In the pest risk analysis titled ``Importation of Christmas Cactus, 
Schlumbergera spp., and Easter Cactus, Rhipsalidopsis spp., in APHIS 
Approved Growing Media into the United States From Denmark,'' APHIS 
determined that there are no quarantine pests that follow the import 
pathway on Christmas cactus and Easter cactus from Denmark. The pest 
risk analysis concluded that the safeguards in Sec.  319.37-8(e) will 
effectively remove any pests from the import pathway and allow the safe 
importation of Christmas cactus and Easter cactus from Denmark.
    In the pest risk analysis titled ``Importation of Christmas Cactus, 
Schlumbergera spp., and Easter Cactus, Rhipsalidopsis spp., in APHIS 
Approved Growing Media into the United States From the Netherlands,'' 
APHIS identified one quarantine pest that could potentially follow the 
import pathway on Christmas cactus and Easter cactus from the 
Netherlands: Fusarium oxysporum Schlechtend. f. sp. opuntiarum 
(Pettinari) Gordon (Fungi Imperfecti: Hypomycetes). The pest risk 
analysis concluded that the safeguards in Sec.  319.37-8(e) would 
effectively remove that and other pests from the import pathway and 
allow the safe importation of Christmas cactus and Easter cactus from 
the Netherlands. The pest risk analysis notes that the characteristic 
above-ground symptoms of the cladophyll rot caused by Fusarium 
oxysporum are relatively easy to identify; should signs of infection be 
detected during any of the several inspections required under the 
regulations, the plants would be ineligible for importation into the 
United States and remedial measures to ensure that the place of 
production is free from quarantine pests would have to be applied.
    One commenter stated that there are not enough safeguards in place 
to protect domestic growers from the inadvertent entry of an unwanted 
pest. The commenter recommended that, at a minimum, the cacti be 
subject to postentry quarantine with multiple inspections by APHIS for 
1 year before release. Another commenter stated that APHIS should 
require a postentry quarantine period of at least 4 months with 
inspections upon entry and before the movement or sale of the plants.
    We are confident that the measures contained in Sec.  319.37-8(e) 
will mitigate the risks posed by Christmas cactus and Easter cactus 
imported in growing media from the Netherlands and Denmark. Among other 
things, the plants will be required to be propagated from clean mother 
stock, grown in approved growing media, watered with clean water 
sources, grown in greenhouses that meet certain requirements for pest 
exclusion, and grown in those greenhouses for a minimum of 4 months 
prior to importation into the United States. In addition, the plants 
will be required to be inspected in the greenhouse and found free of 
evidence of plant pests no more than 30 days prior to the exportation 
of the plants. The effectiveness of these measures renders postentry 
risk management, other than inspection, unnecessary.
    One commenter stated that the proposed rule does not preclude a 
grower from growing the plants in another country that has lower labor 
costs and bringing them back to the exporting country close to the 
shipping date, which could result in the introduction of pests. The 
commenter stated that APHIS must specify where the plants must be 
grown.
    Among other things, the regulations specifically require that 
articles imported in growing media under the provisions of Sec.  
319.37-8(e):
     Must be developed from mother stock that was inspected and 
found free from evidence of disease and pests by an APHIS inspector or 
foreign plant protection service inspector no more than 60 days prior 
to the time the article is established in the greenhouse (except for 
articles developed from seeds germinated in the greenhouse);
     Must be grown solely in a greenhouse in which sanitary 
procedures adequate to exclude plant pests and diseases are always 
employed;
     Must be rooted and grown in an active state of foliar 
growth for at least 4 consecutive months immediately prior to 
importation into the United States in a greenhouse unit that is used 
solely for articles grown in compliance with the regulations; and
     Must be grown from seeds germinated in the greenhouse unit 
or descended from a mother plant that was grown for at least 9 months 
in the exporting country prior to the importation into the United 
States of the descendent plants or, if the mother plant was imported 
into the exporting country from another country, it must be grown for 
at least 12 months in the

[[Page 16195]]

exporting country prior to importation of the descendent plants into 
the United States, or treated at the time of importation into the 
exporting country with a treatment prescribed for pests of that plant 
by the plant protection service of the exporting country and then grown 
for at least 9 months in the exporting country prior to importation of 
the descendent plants into the United States.
    Therefore, if plants were grown in another country then brought 
back to the exporting country shortly before the shipping date as the 
commenter describes, those plants would not be eligible for importation 
in growing media under the provisions of Sec.  319.37-8(e).
    Two commenters noted that the European Community employs a plant 
passport system to facilitate the movement of plants among member 
countries. The commenters stated that they were concerned that the 
movement of plants among European countries could introduce an unknown 
pest or disease into Denmark or the Netherlands that was not taken into 
account by APHIS in its risk analyses, and that such a pest could then 
be introduced into the United States. One of the commenters was 
concerned that there may not be adequate safeguards in the plant 
passport system to ensure that unidentified pests and diseases are 
detected, while the other commenter stated that APHIS must conduct a 
risk analysis for pests of Christmas cactus and Easter cactus from each 
of the countries participating in the European Community's plant 
passport system.
    The plant passport referred to by the commenters is a document that 
travels with a consignment of plants for planting from their place of 
production and serves to certify that the material comes from an 
officially registered producer whose premises are subject to regular 
plant health inspection by an official plant protection agency to 
ensure freedom from quarantine pests and diseases. Thus, the plant 
passport system provides safeguards against the movement of quarantine 
pests into the Netherlands and Denmark. We note that each of the pest 
risk analyses prepared for this rulemaking included a pest list for 
Schlumbergera and Rhipsalidopsis spp. that, while not comprehensive for 
all pests of Schlumbergera and Rhipsalidopsis for all countries in 
Europe, was intended to identify potential pests that may move into the 
Netherlands and Denmark from other European countries on Schlumbergera 
and Rhipsalidopsis plants moving under the European Community Plant 
Passport System.
    Moreover, though, the provisions of Sec.  319.37-8(e) regarding the 
origin requirements for seeds and mother plants that are described in 
the response to the previous comment ensure that the plants eventually 
offered for importation into the United States are descended from stock 
that has been found to be free of pests and diseases, and the 
conditions under which those plants must be grown serve to safeguard 
them from infestation or infection during their pre-export growth 
period.
    One commenter asserted that the economic analysis is based on out-
of-date data from 1998. The commenter stated that APHIS should use more 
current data to determine the economic impact of the proposed rule.
    The economic analysis in the proposed rule cited national data on 
the volume and sales value of potted and hanging baskets of flowering 
plants of Christmas cactus and Easter cactus obtained from the National 
Agricultural Statistics Service.\2\ These data are from the 1998 Census 
of Horticultural Specialties, reported as part of the 1997 Census of 
Agriculture. Although the 2002 Census of Agriculture represents a more 
recent source, the information from the 1998 Census of Horticultural 
Specialties regarding Christmas cactus and Easter cactus has apparently 
not been updated for the 2002 Census. Therefore, the 1998 data cited in 
the proposed rule represent the most recently available national data 
from published sources regarding domestic Christmas cactus and Easter 
cactus production.
---------------------------------------------------------------------------

    \2\ Source: http://www.nass.usda.gov/census/census97/horticulture horticulture, tables 8 and 10. Holiday cacti are reported as 
Zygocactus/ Schlumbergera.
---------------------------------------------------------------------------

    Another commenter stated that plants in media should not be allowed 
for importation into the United States because U.S. growers will not be 
able to effectively compete due to lower production costs in other 
countries.
    Determinations as to whether a new agricultural commodity can be 
safely imported are based on the findings of pest risk analyses, not on 
factors such as economic competitiveness. APHIS is bound under 
international trade agreements to remove restrictions on trade when 
such restrictions are found by scientific analysis to be unnecessary. 
In this case, we have conducted pest risk analyses that found that all 
quarantine pests associated with Christmas cactus and Easter cactus 
from the Netherlands and Denmark are effectively removed from the 
import pathway by the measures required under Sec.  319.37-8(e). Based 
on these analyses, the Secretary of Agriculture has determined that it 
is not necessary to prohibit the importation of Christmas cactus and 
Easter cactus from the Netherlands and Denmark in approved growing 
media.
    Two commenters claimed that the proposed rule will have a 
significant impact on a large number of small growers. One of these 
commenters stated that APHIS did not provide any data to support the 
statement that few local growers specialize in the production of 
Christmas cactus and Easter cactus and these growers should be able to 
compete in the market due to the size and quality of their product. The 
commenter noted that there are relatively few plants that can be 
marketed during the Christmas season and, therefore, most growers 
``specialize'' in growing these plants, mainly poinsettias and 
Christmas cactus, for the holiday season.
    With the term ``specialize,'' APHIS meant to indicate growers 
specializing in the production of Christmas cactus and Easter cactus to 
the exclusion of other genera. There are a number of small growers who 
include these plants in their production systems along with other 
plants. The impact of competition in one commodity in a multiple-
commodity system would be less than for a grower specializing in this 
one commodity alone. Given that Christmas cactus and Easter cactus 
represent only a small fraction of total domestic sales of potted 
flowering plants and the information available to us indicating that 
few growers specialize in the production of Christmas cactus and Easter 
cactus to the exclusion of other genera, we do not expect significant 
effects on the overall supply and price of potted flowering plants sold 
in the United States or a resulting significant economic impact on a 
large number of small entities.
    One commenter stated that the economic analysis in the proposed 
rule failed to mention that the two largest growers of Christmas cactus 
and Easter cactus in the world are seeking access to the U.S. market. 
The commenter claimed that the economic analysis is flawed because it 
does not include this information. The commenter recommended that the 
economic analysis look at the volume of product produced by those 
companies, instead of the number of companies that would potentially 
participate in this program. The commenter noted that the volume of 
plants grown by each of these two companies dwarfs the total amount 
grown by all U.S. growers combined.
    The economic analysis in the proposed rule stated that because 
Christmas cactus and Easter cactus

[[Page 16196]]

comprise a small fraction of the domestic supply of potted flowering 
plants and relatively few producers in the Netherlands and Denmark are 
expected to be involved in the program, no significant change in supply 
and price is expected. One commenter claims that this conclusion is 
faulty. The commenter stated that the analysis should be based on the 
size of the U.S. market, the number of domestic growers producing the 
commodities, and how well the market is served. In addition, the 
analysis should take into account the size of the producers in the 
Netherlands and Denmark. This information would show whether there 
would be a significant change in supply and price if the proposed rule 
is approved.
    The above two comments are addressed in the response below. APHIS 
does not have information regarding the volume of Christmas cactus and 
Easter cactus in media that will be imported under this program. 
However, these plants have been imported in bare-root form and as 
rootless cuttings for many years. The imported bare-rooted plants and 
cuttings are used by U.S. growers to establish their own plants. 
Imports may fluctuate from year-to-year based on market factors such as 
expected demand for the product and the availability of the propagative 
material for producing the final product. From October 2004 to 
September 2005, a volume of 2,853,832 plant units of bare-rooted 
Christmas cactus and Easter cactus was imported into the United States 
(APHIS Import Database, 2004/2005). ``Plant units'' refer to individual 
plants or plant pieces. Ninety-nine percent of the plant units were 
imported from the Netherlands and Denmark, and only 1 percent from 
other countries.
    APHIS does not have published domestic sales data for Christmas 
cactus and Easter cactus for 2004/2005 to compare to the above 
mentioned import data. As mentioned previously, the most recently 
available published data are from the 1998 Census of Horticultural 
Specialties, as presented in table 1 of the economic analysis (see 
``Executive Order 12866 and Regulatory Flexibility Act'' below). The 
prediction of exact outcomes regarding supply and price would therefore 
be precluded in view of the limited availability of data on domestic 
supply and elasticities for Christmas cactus and Easter cactus. 
However, given the small fraction of total domestic sales of potted 
flowering plants that Christmas cactus and Easter cactus represent, 
APHIS does not expect significant effects on the overall supply and 
price of potted flowering plants sold in the United States.
    Furthermore, it should be emphasized that APHIS regulates based on 
phytosanitary concerns, and not market competitiveness. Pest risk 
assessments by APHIS have determined that Christmas cactus and Easter 
cactus established in approved growing media and imported under the 
conditions in Sec.  319.37-8(e) will not result in the introduction and 
dissemination of a plant pest or noxious weed into the United States.
    The alternative to this rule would be to continue the current 
practice of importing only bare-rooted Christmas cactus and Easter 
cactus from the Netherlands and Denmark. The benefit of this rule is to 
provide exporters with the option of shipping rooted cuttings with some 
growing media attached as an alternative to the current bare-root 
process, which allows the plants established from these cuttings to be 
marketable sooner. The bare-root process requires the removal of all 
media from the roots, which may cause considerable damage to the plant. 
Importing the plants in growing media will therefore shorten the time 
required to establish plants from these cuttings, and avoid the damage 
caused to the plants by the process of removing the growing media from 
the roots.
    All three commenters noted that APHIS has initiated a comprehensive 
review of its regulations regarding the importation of nursery stock 
and suggested that it was ill-advised or premature to be considering 
amendments to those regulations prior to the completion of that review 
and the codification of any changes deemed necessary as a result of the 
review.
    As stated earlier in this document, our determination as to whether 
a particular commodity can be safely imported is based on our 
consideration of the risks associated with that commodity. In this 
case, we have conducted pest risk analyses that found that all 
quarantine pests associated with the importation of Christmas cactus 
and Easter cactus in growing media from the Netherlands and Denmark are 
effectively removed from the import pathway by the measures required 
under Sec.  319.37-8(e). Based on these analyses, the Secretary of 
Agriculture has determined that it is not necessary to prohibit the 
importation of Christmas cactus and Easter cactus from the Netherlands 
and Denmark in approved growing media. APHIS is bound under 
international trade agreements to remove technical barriers to trade in 
the event that such barriers are found by scientific analysis to be 
unnecessary. Given this finding, we do not believe it is appropriate to 
delay publication of this final rule until we have completed the review 
of the nursery stock regulations.
    Therefore, for the reasons given in the proposed rule and in this 
document, we are adopting the proposed rule as a final rule, without 
change.

Miscellaneous

    In this final rule, we are making a nonsubstantive editorial change 
to Sec.  319.37-8(e). Specifically, we are correcting the numbering of 
a footnote and amending the text of that footnote to reflect the 
current numbering of the preceding footnote.

Executive Order 12866 and Regulatory Flexibility Act

    This rule has been reviewed under Executive Order 12866. The rule 
has been determined to be not significant for the purposes of Executive 
Order 12866 and, therefore, has not been reviewed by the Office of 
Management and Budget.
    We are amending the regulations governing the importation of plants 
and plant products by adding Christmas cactus (Schlumbergera spp.) and 
Easter cactus (Rhipsalidopsis spp.) from the Netherlands and Denmark to 
the list of plants that may be imported in an approved growing medium 
subject to specified growing, inspection, and certification 
requirements. This change will allow Christmas cactus and Easter cactus 
established in growing media to be imported into the United States from 
the Netherlands and Denmark under certain conditions.
    The United States is a net importer of live trees and plants. 
Imports of these products were valued at $843.8 million in 2003. In 
2003, $147.1 million worth of live trees and plants were imported from 
the Netherlands, which accounted for 17 percent of all U.S. imports of 
these products. The value of live trees and plants imported into the 
United States from Denmark amounted to $1.1 million. Total imports of 
unrooted cuttings and slips into the United States were valued at $39.4 
million in 2003; the value of unrooted cuttings and slips imported from 
the Netherlands and Denmark amounted to $0.9 million and $0.8 million, 
respectively (Source: World Trade Atlas, 2004).
    The value of live trees and plants exported from the United States 
amounted to $196.4 million in 2003. The Netherlands was the second 
largest importing country. Exports of live trees and plants from the 
United States to the Netherlands amounted to $33.9 million, and the 
value of live trees and plants exported to Denmark was $0.3 million. 
U.S. exports of unrooted cuttings and slips were valued at $10.8 
million in 2003, with $0.2 million of the exports

[[Page 16197]]

going to the Netherlands and no exports to Denmark (Source: World Trade 
Atlas, 2004).
    According to the 1998 Census of Horticultural Specialties, the 
value of potted Zygocactus and Schlumbergera \3\ plants sold in the 
United States amounted to $5 million in 1998, and the sales value of 
hanging baskets of these plants was $680,000 (table 1). Zygocactus and 
Schlumbergera represented a small proportion of the potted flowering 
plant industry in the United States. Less than 4 percent of the 
operations selling pots and hanging baskets of potted flowering plants 
in 1998 sold these plants, which accounted for only 0.9 percent of the 
number of potted plants sold and for only 0.6 percent of the sales 
value. Similarly, Zygocactus and Schlumbergera accounted for only 4.1 
percent of the number and 3.4 percent of the sales value of hanging 
baskets of potted flowering plants. A wide variety of potted flowering 
plants are sold in the United States.
---------------------------------------------------------------------------

    \3\ Zygocactus is an older synonym of Schlumbergera. 
Taxonomically, Easter cactus was classified in the genus 
Schlumbergera; today it is classified in the genus Rhipsalidopsis.

Table 1.--Pots and Hanging Baskets of Potted Flowering Plants of Zygocactus and Schlumbergera Sold in the United
                                                  States (1998)
----------------------------------------------------------------------------------------------------------------
                                                                     Volume and value of sales
                                                 ---------------------------------------------------------------
                                     Number of                 Total                         Wholesale
              Item                  operations   ---------------------------------------------------------------
                                                      Number        Sales value       Number        Sales value
                                                      (1,000)        ($1,000)         (1,000)        ($1,000)
----------------------------------------------------------------------------------------------------------------
Potted plants:
    Zygocactus/Schlumbergera....             175           2,386          $5,332           2,248          $4,953
    All potted flowering plants.           5,008         251,684         848,086         234,164         710,386
    Zygocactus/Schlumbergera as             3.5%            0.9%            0.6%            1.0%            0.7%
     a percentage of all........
Hanging baskets:
    Zygocactus/Schlumbergera....              57             109            $680             108            $671
    All potted flowering plants.           1,514           2,676          20,044           2,251          14,962
    Zygocactus/Schlumbergera as             3.8%            4.1%            3.4%            4.8%           4.5%
     a percentage of all........
----------------------------------------------------------------------------------------------------------------
Source: Census of Horticultural Specialties (1998, http://www.nass.usda.gov/census/census97/horticulture/horticulture.htm).

    The Regulatory Flexibility Act requires agencies to specifically 
consider the economic impact of their rules on small entities. As 
determined by the Small Business Administration, the small entity size 
standard for floriculture production (North American Industry 
Classification System [NAICS] code 111422) is $750,000 or less in 
annual receipts. Flower, nursery stock, and florists' supplies merchant 
wholesalers (NAICS code 424930) are considered to be small if they 
employ 100 or fewer individuals (http://www.census.gov/naics, http://www.sba.gov).
    Table 1 shows the number of operations involved in growing 
Christmas cactus and Easter cactus plants in the United States in 1998. 
There were 175 operations involved in producing pots and 57 operations 
involved in producing hanging baskets of potted flowering plants of 
Zygocactus and Schlumbergera. Over 90 percent of the plants were sold 
through wholesale outlets. However, information is not available 
regarding the size of these grower operations or sales outlets. The 
number of either small or large entities that could be affected by the 
rule can therefore not be determined at present.
    However, few growers in the United States specialize in the 
exclusive production of Christmas cactus and Easter cactus. A number of 
small growers include these plants in their production systems along 
with other plants. The impact of competition in one commodity in a 
multiple-commodity system would be less than for a grower specializing 
in this one commodity alone. U.S. producers should be able to compete 
in the market due to the size and quality of their product. Growers 
from the Netherlands and Denmark also have to incur additional shipping 
costs and phytosanitary compliance costs when shipping to the United 
States.
    The rule will likely benefit importers and consumers in the United 
States. Importing the plants in growing media will shorten the time 
required to establish plants from these cuttings, and avoid the damage 
caused to the plants by the process of removing the growing media from 
the roots. Consumers will likely benefit from an increased availability 
of the plants.
    Given the small fraction that Christmas cactus and Easter cactus 
comprise of total domestic sales of potted flowering plants (table 1), 
APHIS does not expect significant effects on the overall supply and 
price of potted flowering plants sold in the United States. 
Furthermore, it should be emphasized that APHIS regulates based on 
phytosanitary concerns, and not market competitiveness. Pest risk 
assessments by APHIS have determined that Christmas cactus and Easter 
cactus from the Netherlands and Denmark established in approved growing 
media and imported under the conditions in Sec.  319.37-8(e) will not 
result in the introduction and dissemination of a plant pest or noxious 
weed into the United States.
    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 final rule allows Schlumbergera spp. and Rhipsalidopsis spp. 
plants to be imported in approved growing media into the United States 
from the Netherlands and Denmark. State and local laws and regulations 
regarding imported Schlumbergera spp. and Rhipsalidopsis spp. plants 
will be preempted while the plants are in foreign commerce. Potted 
plants are generally imported for immediate distribution and sale to 
the consuming public, and remain in foreign commerce until sold to the 
ultimate consumer. The question of when foreign commerce ceases in 
other cases must be addressed on a case-by-case basis. No retroactive 
effect will be given to this rule, and this rule will not require 
administrative proceedings before parties may file suit in court 
challenging this rule.

[[Page 16198]]

National Environmental Policy Act

    An environmental assessment and finding of no significant impact 
have been prepared for this final rule. The environmental assessment 
provides a basis for the conclusion that the importation of Christmas 
cactus and Easter cactus in growing media from the Netherlands and 
Denmark under the conditions specified in the regulations 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 finding of no significant impact 
were prepared in accordance with: (1) The National Environmental Policy 
Act of 1969 (NEPA), as amended (42 U.S.C. 4321 et seq.), (2) 
regulations of the Council on Environmental Quality for implementing 
the procedural provisions of NEPA (40 CFR parts 1500-1508), (3) USDA 
regulations implementing NEPA (7 CFR part 1b), and (4) APHIS's NEPA 
Implementing Procedures (7 CFR part 372).
    The environmental assessment and finding of no significant impact 
may be viewed on the Regulations.gov Web site.\4\ Copies of the 
environmental assessment and finding of no significant impact are also 
available for public inspection at USDA, room 1141, South Building, 
14th Street and Independence Avenue, SW., Washington, DC, between 8 
a.m. and 4:30 p.m., Monday through Friday, except holidays. Persons 
wishing to inspect copies are requested to call ahead on (202) 690-2817 
to facilitate entry into the reading room. In addition, copies may be 
obtained by writing to the individual listed under FOR FURTHER 
INFORMATION CONTACT.
---------------------------------------------------------------------------

    \4\ Go to http://www.regulations.gov, click on the ``Advanced 
Search'' tab and select ``Docket Search.'' In the Docket ID field, 
enter APHIS-2005-0040, click on ``Submit,'' then click on the Docket 
ID link in the search results page. The environmental assessment and 
finding of no significant impact will appear in the resulting list 
of documents.
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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 0579-0266.

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's Information Collection Coordinator, at (301) 734-7477.

List of Subjects in 7 CFR Part 319

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

0
Accordingly, we are amending 7 CFR part 319 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, 7701-7772, and 7781-7786; 21 U.S.C. 136 
and 136a; 7 CFR 2.22, 2.80, and 371.3.


Sec.  319.37-8  [Amended]

0
2. Section 319.37-8 is amended as follows:
0
a. In the introductory text of paragraph (e), by removing the period 
after the word ``Saintpaulia'' and by adding, in alphabetical order, 
entries for ``Rhipsalidopsis spp. from the Netherlands and Denmark'' 
and ``Schlumbergera spp. from the Netherlands and Denmark.''.
0
b. By redesignating footnote 11a as footnote 11 and, in the text of 
newly redesignated footnote 11, by removing the words ``footnote 11'' 
and adding the words ``footnote 10'' in their place.
0
c. By adding, at the end of the section, the following OMB control 
number citation: ``(Approved by the Office of Management and Budget 
under control number 0579-0266)''.

    Done in Washington, DC, this 27th day of March 2006.
Kevin Shea,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 06-3126 Filed 3-30-06; 8:45 am]
BILLING CODE 3410-34-P