[Federal Register Volume 71, Number 163 (Wednesday, August 23, 2006)]
[Rules and Regulations]
[Pages 49319-49326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-13986]


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

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 352

[Docket No. 00-086-2]


Untreated Oranges, Tangerines, and Grapefruit From Mexico 
Transiting the United States to Foreign Countries

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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

SUMMARY: We are amending the regulations to allow untreated oranges, 
tangerines, and grapefruit from Mexico to be moved overland by truck or 
rail to Corpus Christi and Houston, TX, for export to another country 
by water. We

[[Page 49320]]

are taking this action in response to requests by the port authorities 
of Corpus Christi and Houston, TX. We are also requiring that untreated 
oranges, tangerines, and grapefruit from Mexico transiting the United 
States for export to another country be shipped in sealed, refrigerated 
containers and insect-proof packaging and via routes that avoid citrus 
production areas. We are taking this action to provide additional 
protection against the possible introduction of fruit flies via 
untreated oranges, tangerines, and grapefruit from Mexico that transit 
the United States.

EFFECTIVE DATE: October 23, 2006.

FOR FURTHER INFORMATION CONTACT: Mr. Dave Hanken, Senior Staff Officer, 
or Ms. Candace Funk, Staff Officer, Quarantine Policy, Analysis, and 
Support, PPQ, APHIS, 4700 River Road Unit 60, Riverdale, MD 20737-1236; 
(301) 734-8295.

SUPPLEMENTARY INFORMATION: 

Background

    The plant quarantine safeguard regulations in 7 CFR part 352 
relieve restrictions for certain products or articles that are 
classified as prohibited or restricted products or articles under our 
other regulations in title 7. Such articles include fruits and 
vegetables that are moved into the United States for: (1) A temporary 
stay where unloading or landing is not intended, (2) unloading or 
landing for transshipment and exportation, (3) unloading or landing for 
transportation and exportation, or (4) unloading and entry at a port 
other than the port of first arrival. Fruits and vegetables that are 
moved into the United States under these circumstances are subject to 
inspection and must be handled in accordance with conditions assigned 
under the safeguard regulations to prevent the introduction and 
dissemination of plant pests.
    The regulations in Sec.  352.30 (referred to below as the 
regulations) address the movement into or through the United States of 
untreated oranges, tangerines, and grapefruit from Mexico that transit 
the United States en route to foreign countries. The regulations 
currently allow untreated oranges, tangerines, and grapefruit from 
Mexico to enter the United States at the ports of Nogales, AZ, or Eagle 
Pass, El Paso, or Laredo, TX. The fruit may then be moved, under 
certain conditions, by truck or railcar to the seaport at Galveston, 
TX, for export by water to another country. The port authorities of 
Corpus Christi and Houston, TX, have requested that those ports be 
added to the regulations as ports to which untreated Mexican oranges, 
tangerines, and grapefruit may be moved for export by water.
    In response to these requests, on December 4, 2001, we published in 
the Federal Register (66 FR 63004-63007, Docket No. 00-086-1) a 
proposal to amend the regulations by adding Corpus Christi and Houston, 
TX, to the list of ports to which we allow untreated oranges, 
tangerines, and grapefruit from Mexico to be moved overland by truck or 
rail for export by water to another country. We took this action based 
on our finding that the risk posed by allowing untreated oranges, 
tangerines, and grapefruit to transit the United States for export at 
the ports of Corpus Christi and Houston, TX, would be no different than 
the risk currently posed by in-transit shipments of untreated oranges, 
tangerines, and grapefruit moved from Mexico to Galveston, TX, for 
export.
    The regulations in Sec.  352.30(b) prescribe that trucks 
transporting untreated oranges, tangerines, and grapefruit from Mexico 
on overland routes either must be of the van type or must have a 
tarpaulin tightly tied down over the cargo. In our December 2001 
proposed rule, we proposed to amend these regulations to require that 
such fruit be transported in sealed, refrigerated containers of the 
type commonly used by the maritime and commercial trucking industries. 
Fruit flies are known to exist in some areas of Mexico where oranges, 
tangerines, and grapefruit are grown, and the areas that untreated 
oranges, tangerines, and grapefruit from Mexico may transit within the 
United States while en route to export include some citrus-producing 
areas. Given those circumstances, we believed the transport conditions 
in place should be amended to better assure protection against the 
introduction of fruit flies into the United States. The requirement 
that untreated oranges, tangerines, and grapefruit be shipped in 
sealed, refrigerated containers would help, we stated, to reduce the 
risk of such an introduction.
    We also proposed to update the regulations in Sec.  352.30(e), 
which contains a cross-reference to our regulations in Sec.  319.56-2h 
that list areas in Mexico that are free of certain fruit flies. 
Paragraph (e) of Sec.  352.30 names only Sonora as a region in Mexico 
free of fruit flies; however, other regions of Mexico have been listed 
in Sec.  319.56-2(h) as being free of fruit flies since Sec.  352.30(e) 
was established. We proposed to eliminate the reference to Sonora and 
simply refer to the list of fruit fly-free areas in Sec.  319.56-2(h) 
to make the regulations consistent.
    We solicited comments concerning our proposal for 60 days ending 
February 4, 2002. We received 5 comments by that date. They were from 
industry representatives and representatives of State governments. They 
are discussed below by topic.
    Two commenters wanted APHIS to withdraw the proposed rule on the 
grounds that any rule that might increase the risk of fruit flies being 
introduced into the United States should be opposed. One commenter 
cited the discovery of Mediterranean fruit fly larvae in cold-treated 
Spanish clementines in 2001 in arguing that allowing untreated oranges, 
tangerines, and grapefruit to transit the United States for eventual 
export posed an unacceptable risk. This commenter also noted that 
recent fruit fly eradication programs in Florida and California have 
been costly.
    As stated above, APHIS currently allows untreated oranges, 
tangerines, and grapefruit to transit the United States under certain 
conditions for eventual export to another country from the seaport at 
Galveston, TX. We proposed to allow such fruit to be exported from 
Corpus Christi and Houston, TX, based on our finding that the risk 
posed by allowing untreated oranges, tangerines, and grapefruit to 
transit the United States for export at the ports of Corpus Christi and 
Houston, TX, would be no different than the risk currently posed by in-
transit shipments of untreated oranges, tangerines, and grapefruit 
moved from Mexico to Galveston, TX, for export. Therefore, we believe 
there is no increase in the risk of introduction of fruit flies into 
the United States associated with allowing in-transit shipments of 
untreated oranges, tangerines, and grapefruit to be moved from Mexico 
to Corpus Christi or Houston, TX.
    It is true that if the ability to use the ports at Corpus Christi 
and Houston, TX, made the process of exporting more convenient or less 
costly for Mexican exporters of oranges, tangerines, and grapefruit, a 
greater volume of the fruits in question might move through the United 
States, which could potentially increase the risk of introducing fruit 
flies. However, the proposed rule included new safeguards not found in 
the current regulations against the possible introduction of fruit 
flies. In response to comments we received on the proposed rule, this 
final rule retains those proposed new safeguards and adds additional 
safeguards, which include insect-proof packaging, transportation of the 
fruit in refrigerated containers, transportation and exportation 
permits, required

[[Page 49321]]

supervision by inspectors of transloading if it is necessary, and 
verification of the seals on the containers. Because we are adding 
these safeguards for shipments of untreated oranges, tangerines, and 
grapefruit from Mexico transiting the United States, we believe we are 
not relaxing our regulations or increasing the risk of introduction of 
fruit flies into the United States.
    One of the commenters stated that allowing untreated oranges, 
tangerines, and grapefruit to transit the United States for eventual 
export from Galveston, TX, as is currently allowed by the regulations, 
poses an unacceptable risk of introducing fruit flies into the United 
States. The commenter requested that shipments of untreated oranges, 
tangerines, and grapefruit from Mexico that transit the United States 
be suspended immediately if any breaches in biological security are 
identified.
    We believe that the safeguards we are adding to the regulations in 
this final rule, as summarized above, minimize the risk of introducing 
fruit flies or other plant pests into the United States via shipments 
of untreated oranges, tangerines, and grapefruit from Mexico transiting 
the United States for eventual export. If we become aware of a breach 
in biological security or any other evidence indicating that these 
shipments pose a higher risk of plant pest introduction than we had 
previously believed, we will take any actions we deem necessary to 
address this risk. These actions may include, but may not necessarily 
be limited to, suspending these shipments.
    Two commenters expressed concerns about the seals the proposed rule 
specified would be used on refrigerated containers carrying untreated 
oranges, tangerines, and grapefruit from Mexico to ensure that the 
containers are not opened before arrival at the port of export. One 
commenter asked APHIS to clarify that the containers should be sealed 
prior to entering the United States and remain sealed until shipments 
have departed Texas and other southern States where fruit fly host 
material exists. Another commenter stated that border inspectors in the 
Rio Grande Valley often break open the seals on shipping containers to 
perform inspections. Accidents during shipping or investigations of 
such accidents could also result in the seals being broken. Once a seal 
is broken, the untreated oranges, tangerines, and grapefruit could be 
mixed with other citrus.
    We agree that it is important to maintain the integrity of the 
seals on containers in which untreated oranges, tangerines, and 
grapefruit from Mexico transit the United States. Therefore, we are 
adding a requirement to the final rule that an inspector at the port of 
entry must be contacted immediately if the seal on a container of 
untreated oranges, tangerines, or grapefruit is broken, for any reason, 
before the container leaves the United States. The inspector will then 
be able to assess the situation and take appropriate action to reduce 
the risk of introducing fruit flies. We are also requiring that, if 
untreated fruit from Mexico is transloaded to another container, the 
transloading must be supervised by an inspector and a replacement 
official seal must be applied to the container to which the fruit is 
moved. We believe that these measures will enable inspectors to take 
any required corrective action quickly and effectively if a seal is 
broken during transit.

    Note: To reflect the reassignment of some inspection duties to 
the Bureau of Customs and Border Protection, we have replaced the 
definition of inspector in Sec.  352.1 with the following 
definition: ``Any individual authorized by the Administrator of 
APHIS or the Commissioner of Customs and Border Protection, 
Department of Homeland Security, to enforce the regulations in this 
part.'' We have also amended references to representatives and seals 
of the Plant Protection and Quarantine Programs to simply refer to 
inspectors and seals, respectively.

    One commenter supported allowing untreated oranges, tangerines, and 
grapefruit from Mexico to transit the United States for eventual 
export, but took issue with the proposed safeguards, saying that more 
safeguards should be in place to allow for unexpected delays caused by 
mechanical failure, lack of refrigeration, human error, or other 
causes. Other commenters asked generally for more safeguards to be 
added for such shipments.
    We have carefully reviewed the safeguards in the proposed rule for 
transporting untreated oranges, grapefruit, and tangerines by truck, 
and we have decided to make several changes in addition to the changes 
described above. In this final rule, we are adding a requirement that 
the untreated oranges, grapefruit, and tangerines must be shipped in 
insect-proof boxes or crates that prevent the escape or entry of adult, 
larval, or pupal fruit flies. Insect-proof boxes or crates will help 
ensure that any fruit flies that may be present in the fruit, 
regardless of life stage, are prevented from emerging from the 
containers while the fruit transits the United States for export.
    This final rule also specifies that the temperature in refrigerated 
containers must be maintained at 60[deg]F or lower. Refrigerating the 
containers to this temperature will inhibit pupation in any fruit flies 
that may be present in the untreated oranges, tangerines, and 
grapefruit, thereby preventing the fruit flies from emerging from the 
containers into the United States. An inspector must be notified if the 
cooling system of any refrigerated container fails, and untreated 
oranges, tangerines, and grapefruit that are transported in a 
refrigerated container whose cooling system fails must be transloaded 
into a container with an operable cooling system under the conditions 
described above. This will ensure that the untreated oranges, 
grapefruit, and tangerines are adequately refrigerated and that an 
inspector supervises the transfer of untreated oranges, tangerines, and 
grapefruit to another container if they are not.
    We are also adding a requirement that a transportation and 
exportation permit must be issued by an inspector for shipments of 
these fruits. This permit can be obtained only from APHIS headquarters. 
The transportation and exportation permit allows the untreated fruit to 
transit the country on the condition that it must not enter the 
commerce of the United States.
    Currently, the regulations require that the owner of the oranges, 
tangerines, and grapefruit to be shipped procure a formal permit as 
provided in Sec.  352.6; paragraph (a) of that section refers the 
reader to Sec.  352.5 to see the requirements for permits for shipping 
plants and plant products. Paragraph (a) of Sec.  352.5 states that a 
permit required under the regulations ``may consist of a general 
authorization, as set out in paragraphs (b), (c), or (d) of this 
section or Sec.  352.11, or it may be a specific permit.'' This final 
rule makes this general requirement more specific, allowing shippers to 
know in advance what permit they will have to secure. This additional 
permit requirement also enables inspectors to know the routing of 
shipments of untreated oranges, tangerines, and grapefruit from Mexico 
while they are transiting the United States, facilitating intervention 
should it prove necessary.
    We are also requiring that all shipments of untreated oranges, 
tangerines, and grapefruit from Mexico through the United States must 
move in U.S. Customs bond. Previously, we had required that air and 
rail shipments of these fruits move in U.S. Customs bond; this final 
rule extends that requirement to shipments transported by truck and 
vessel. We believe that the requirement

[[Page 49322]]

that truck and vessel shipments must move in U.S. Customs bond will 
serve as an additional safeguard.
    Together, these safeguards will augment the safeguards described in 
the proposed rule to minimize the risk of introduction of fruit flies 
or other plant pests due to shipments of untreated oranges, tangerines, 
and grapefruit from Mexico transiting the United States.
    One commenter welcomed the safeguards specified in the proposed 
rule but argued further that these safeguards should apply to all fruit 
fly host material transported from Mexico to or through the United 
States and to shipments of fruit fly host material transported not only 
by truck but also by rail.
    We agree that rail shipments of untreated oranges, tangerines, and 
grapefruit from Mexico transiting the United States should employ the 
same safeguards that truck shipments of those fruits do. Accordingly, 
we have amended the regulations on rail shipments of untreated oranges, 
tangerines, and grapefruit to indicate that such untreated fruit may 
only be shipped in insect-proof packaging and in sealed, refrigerated 
containers. Those containers will also be required to maintain a 
temperature of 60 [deg]F or below while in transit. Shippers of 
containers shipped by rail will have to follow the requirement that an 
inspector must be notified if the seal on the containers is broken or 
if the refrigeration system in the container breaks down, as well as 
the requirement that authorized personnel supervise the transfer of 
untreated oranges, tangerines, and grapefruit from one container to 
another. They will also move under a transportation and exportation 
permit. We believe that these safeguards will help to protect against 
the introduction of fruit flies into the United States associated with 
untreated oranges, tangerines, and grapefruit from Mexico transiting 
the United States by rail.
    Extending the safeguards to cover all fruit fly host material 
transported from Mexico to or through the United States is beyond the 
scope of this rulemaking, and we cannot address it in this final rule.
    One commenter urged APHIS to clarify restrictions on the 
transportation of shipments of untreated oranges, tangerines, and 
grapefruit in the regulations. Current APHIS policy, this commenter 
stated, is to reroute such shipments through Laredo, TX, and away from 
the Rio Grande Valley citrus production area. There is presently no 
restriction on the routes such shipments must follow in the 
regulations. The commenter expressed concern that if overland 
transportation of untreated oranges, tangerines, and grapefruit through 
the Rio Grande Valley citrus production area was not clearly 
prohibited, shipments of untreated oranges, tangerines, and grapefruit 
would traverse that area. Since fruit flies may be present in untreated 
oranges, tangerines, and grapefruit from Mexico, allowing shipments of 
these fruits to traverse the Rio Grande Valley, which has many 
potential fruit fly hosts, would increase the risk of introduction of 
fruit flies into the United States.
    We agree that this restriction needs to be clarified in the 
regulations. Therefore, we have added a provision to the regulations 
stating that no shipment of untreated oranges, tangerines, or 
grapefruit shall traverse the counties of Cameron, Hidalgo, Starr, and 
Willacy, TX, which together comprise the Rio Grande Valley citrus 
production area.
    We have additionally specified that truck shipments shall only 
traverse the territory within the United States bounded on the west by 
a line starting at Laredo, TX, on to El Paso, TX, to Salt Lake City, 
UT, and then to Portland, OR, and on the east by a line drawn from 
Laredo, TX to Hebbronville, TX, to Corpus Christi, TX, to Galveston, 
TX, to Kinder, LA, to Memphis, TN, and then to Louisville, KY, and 
routes directly northward. This ensures that truck shipments of 
untreated oranges, tangerines, and grapefruit from Mexico that transit 
the United States en route to Canada will not pass through any areas in 
Texas where citrus is produced.
    Paragraph (a)(4)(ii) of the regulations has required that shipments 
of untreated oranges, tangerines, and grapefruit from Mexico transiting 
the United States via truck be convoyed by an inspector from the point 
of arrival in the United States to the point of unloading or move under 
such other safeguards as the inspector shall provide. Because we are 
adding these route restrictions and a requirement for a transportation 
and exportation permit to shipments of untreated oranges, tangerines, 
and grapefruit from Mexico transiting the United States via truck, we 
no longer believe the requirement that truck shipments move under 
convoy is necessary, and we have removed it in this final rule.
    The proposed rule included a revised description of the area 
through which shipments of untreated oranges, tangerines, and 
grapefruit may traverse the United States via rail. However, our 
proposed revision would have allowed rail shipments of these fruits to 
traverse the Rio Grande Valley citrus-producing area. Therefore, we are 
rewording that description so that it is identical to the territory 
that truck shipments of untreated oranges, tangerines, and grapefruit 
may traverse, as described above.
    One commenter requested that APHIS conduct fruit fly trapping in 
areas in the United States that have commercial, ornamental, or native 
plants that could serve as fruit fly hosts and through which untreated 
oranges, tangerines, and grapefruit from Mexico are moved. The 
commenter requested that this additional trapping be undertaken in the 
coastal area from Brownsville to Port Arthur, TX, and in any other 
areas through which untreated oranges, tangerines, and grapefruit may 
be moved.
    APHIS already surveys this area for fruit flies, because it is 
close to areas in Mexico where fruit flies exist. By clarifying that 
shipments of untreated oranges, tangerines, and grapefruit may not move 
through the Rio Grande Valley citrus production area, as defined above, 
we have ensured that such shipments will not be transported through any 
areas in Texas where citrus is produced. This step reduces the risk 
that fruit flies may be introduced into the United States due to these 
shipments. Under these circumstances, we do not believe that additional 
fruit fly trapping is necessary or warranted at the present time. If, 
in the future, we find evidence that additional fruit fly trapping is 
necessary, we will take appropriate action.

Miscellaneous

    This final rule requires that all untreated oranges, tangerines, 
and grapefruit from Mexico transiting the United States be moved in 
refrigerated containers, whether transported by rail or by truck, and 
that the containers must maintain a temperature of 60 [deg]F or less. 
Therefore, we are removing Sec.  352.30(b)(4)(ii), which sets out icing 
requirements for refrigerator cars transported by rail that are no 
longer relevant to such transport under this final rule. In addition, 
Sec.  352.30(c)(3), which specifies requirements for transport of 
untreated oranges, tangerines, and grapefruit from Mexico in 
refrigerated holds of ships leaving from the United States, is no 
longer applicable, as the untreated fruit must be transported in 
refrigerated containers whose seal may not be broken except by an 
inspector or after the container has left the United States. Therefore, 
we are removing this paragraph.
    In addition, we are making several changes to Sec.  352.30(a) to 
change references to refrigerated cars or trucks to refer to 
refrigerated containers, and we are removing Sec.  352.30(b)(1) because

[[Page 49323]]

it sets out a packaging requirement that is not relevant if all 
untreated oranges, tangerines, and grapefruit are shipped in sealed, 
refrigerated containers.
    Finally, paragraph (b)(5) of the regulations sets out requirements 
for the transportation of untreated oranges, tangerines, and grapefruit 
from Mexico that transit the United States via air carrier. These 
requirements have included transporting the shipment under U.S. Customs 
bond and without change of Customs entry in the United States. Because 
we are making it a general requirement that shipments of untreated 
oranges, tangerines, and grapefruit from Mexico transiting the United 
States must move under U.S. Customs bond, we are removing that 
requirement from this paragraph. In addition, given that this final 
rule requires that the fruit be shipped in sealed, refrigerated 
containers, we do not believe the requirement that the shipment move 
under the same Customs entry is necessary, and we have removed it. 
Paragraph (b)(5) also states that if an emergency occurs en route to 
the port of export that will require transshipment to another carrier, 
the owner should apply to the Plant Protection and Quarantine Programs 
for information as to applicable conditions. We are simplifying this 
requirement to indicate that if such an emergency occurs, the owner 
must contact an inspector immediately.
    We are also making miscellaneous nonsubstantive changes to the 
regulations for the purpose of clarity and ease of reading.
    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.

Effective Date

    As described above, this final rule adds several safeguards against 
the introduction of fruit flies into the United States via untreated 
oranges, tangerines, and grapefruit from Mexico transiting the United 
States to the regulations. Because persons currently engaged in 
transporting such fruit when it is in the United States will need some 
time to implement the changes we are making in this final rule, we have 
set the effective date for this final rule at 60 days after publication 
in the Federal Register.

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.
    This final rule amends the regulations to allow untreated oranges, 
tangerines, and grapefruit from Mexico to be moved overland by truck or 
rail to Corpus Christi and Houston, TX, for export to another country 
by water. We are taking this action in response to requests by the port 
authorities of Corpus Christi and Houston, TX. This final rule will 
also require that untreated oranges, tangerines, and grapefruit from 
Mexico transiting the United State for export to another country be 
shipped in sealed, refrigerated containers and insect-proof packaging 
and via routes that avoid citrus production areas. We are taking this 
action to provide additional protection against the possible 
introduction of fruit flies via untreated oranges, tangerines, and 
grapefruit from Mexico that transit the United States.
    For the 4 years 2000 through 2003, the amount of in-transit Mexican 
citrus shipped through the United States was relatively small, ranging 
in volume between 2 percent and 10 percent compared to the quantities 
of Mexican citrus imported into the United States (table 1). In 2004, 
there was a notable increase in the in-transit quantity; the amount 
equaled 23 percent of Mexican citrus imported by the United States 
(10.5 thousand metric tons, compared to 46.3 thousand metric tons).
    For the years 2000 through 2004, the percentage of in-transit 
Mexican citrus that was shipped to Texas ports varied between 15 
percent in 2001 and 93 percent in 2003 (table 2). The availability of 
the two additional ocean ports in Texas will help accommodate growth of 
this in-transit corridor. More than 43 percent of untreated Mexican 
citrus that transited the United States between 2000 and 2004 entered 
the country through a Texas port (maritime, airport, or land-border).

      Table 1.--Oranges, Tangerines, and Grapefruit From Mexico Imported Into the United States and Transiting the United States to Another Country
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Fresh and dried oranges, tangerines, and grapefruit        Oranges, tangerines, and grapefruit from Mexico transiting the United States en route to
        imported into the United States from Mexico                                                another country
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                   Volume
               Year                   Value       (metric                                        Volume (metric tons)
                                     ($1,000)      tons)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2000.............................       11,369       57,770  4,419 (8 percent of imports that go into U.S. commerce).
2001.............................        8,628       50,209  3,562 (7 percent of imports that go into U.S. commerce).
2002.............................        9,292       53,804  5,487 (10 percent of imports that go into U.S. commerce).
2003.............................       11,934       64,000  1,337 (2 percent of imports that go into U.S. commerce).
2004.............................        6,982       46,319  10,576 (23 percent of imports that go into U.S. commerce).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Harmonized Schedule codes: Oranges (HS 080510), grapefruit (080540) and tangerines (080520).
Source: UN Trade Statistics U.S. Import data (6 digit), Web site: http://fasnet.usda.gov/untrdscripts/unreport.exe.
Source: USDA/APHIS/PPQ data from the ports, compiled by Robert English, PPQ.
In-transit produce is not included in U.S. imports of Mexican oranges, grapefruits, and tangerines.


   Table 2.--Volume of Oranges, Tangerines, and Grapefruit From Mexico Transiting the U.S. to Another Country
                                                  (Metric Tons)
----------------------------------------------------------------------------------------------------------------
                                         Total Mexican
                                            oranges,
                                        tangerines, and                                             In-transit
                 Year                    grapefruit in-     In-transit through Texas ports \1\     through non-
                                        transit through                                             Texas ports
                                          all eligible
                                           U.S. ports
----------------------------------------------------------------------------------------------------------------
2000..................................          4,418.1  1,610.6 (36 percent of total in-                2,808.5
                                                          transit).

[[Page 49324]]

 
2001..................................          3,561.9  535.0 (15 percent of total in-transit).         3,026.9
2002..................................          5,487.2  3,252.1 (59 percent of total in-                2,235.1
                                                          transit).
2003..................................          1,337.2  1,249.2 (93 percent of total in-                   88.0
                                                          transit).
2004..................................         10,576.0  2,500.5 (24 percent of total in-               8,075.5
                                                          transit).
----------------------------------------------------------------------------------------------------------------
Harmonized Schedule codes: Oranges (HS 080510), grapefruit (080540) and tangerines (080520).
\1\ Maritime ports: Galveston, TX; Land border ports: Laredo, TX; El Paso, TX; Eagle Point, TX; Airports:
  Houston, TX; Austin, TX.
Source: USDA/APHIS/PPQ data from the ports, compiled by Robert English, PPQ.

    Currently, the Houston port is the second-largest among U.S. ports 
in terms of trade volume.\1\ Two major railroads, 150 trucking lines, 
and two international airports connect the port of Houston to the rest 
of the continental United States, Canada, Mexico, and beyond. It is 
estimated that 1,263 firms were operating within Houston's port 
authority in 2005, providing services to the cargo and vessels at the 
marine terminals. They contribute over 144,500 jobs to the area and 
generate over $10 billion in business revenue annually. The port also 
contributes to the welfare of the local economy, generating over $640 
million in State and local taxes annually.
---------------------------------------------------------------------------

    \1\ Port of Houston Authority, Economic Impact. See: http://www.portofhouston.com/geninfo/economicimpact.html.
---------------------------------------------------------------------------

    It is estimated that 312 firms were operating within Corpus 
Christi's port authority in 2003.\2\ The port employed some 11,859 
people directly; an estimated 19,060 indirect jobs and 8,930 induced 
jobs within the regional economy could be attributed to the port's 
operations. The 312 firms had a combined annual payroll of more than 
$555.8 million in direct wages and salaries, with an average salary of 
$48,600.
---------------------------------------------------------------------------

    \2\ Martin Associates, February 2004: The Local and Regional 
Economic Impacts of the Port of Corpus Christi. See: http://www.portofcorpuschristi.cm/pdfs/Economic%20Impact%20Report.pdf.
---------------------------------------------------------------------------

    In 2003, the port of Corpus Christi began operating a refrigerated 
warehouse facility that has resulted in revenues of over $100,000 
annually. The cold storage facility includes rooms with freezing and 
chilling capabilities, a treatment facility, and rail and truck docks 
that are temperature-controlled. This facility can serve the growing 
market for refrigerated shipments of citrus fruit exported from Mexico 
to other countries.
    Increased volumes of in-transit oranges, tangerines, and grapefruit 
received from Mexico resulting from the addition of the two ocean ports 
are expected to generate additional business for the U.S. trucking 
industry. Mexican trucks are confined to narrow commercial zones that 
extend 20 kilometers, at most, within the U.S. border, at which point 
they are required to transfer their goods to U.S. haulers.
    Additional Federal expenses associated with increased workloads or 
personnel needed to monitor the loading and unloading of in-transit 
shipments of untreated oranges, tangerines, and grapefruit at the two 
ports are expected to be funded by the respective port authorities.
    Although the rule is expected to increase the volume of oranges, 
tangerines, and grapefruit from Mexico that transit the United States, 
the risk of introduction of pests, specifically fruit flies, is not 
expected to increase. Additional safeguards against the possible 
introduction of fruit flies have been included in this final rule, such 
as insect-proof packaging, transportation of the fruit in refrigerated 
containers, transportation and exportation permits, and repeated checks 
of the seals on the containers.

Impact on Small Entities

    The Regulatory Flexibility Act requires that agencies specifically 
consider the economic impact of their regulations on small entities. 
The Small Business Administration (SBA) has established size criteria 
using the North American Industry Classification System (NAICS) to 
determine which economic entities meet the definition of a small firm.
    Small businesses at the ports of Houston and Corpus Christi will 
benefit by this rule to the extent that they are involved in handling 
the in-transit shipments of untreated oranges, tangerines, and 
grapefruit arriving at their ports. Small businesses at the port of 
Galveston could experience some negative economic effects because of 
the rule, if in-transit shipments are diverted from Galveston to the 
Corpus Christi or Houston ports. There are approximately 1,263 firms 
operating at the port of Houston and 312 firms at the port of Corpus 
Christi. There is also an unknown number of firms located near the two 
ports that provide services related to port activities. The number of 
affected entities that can be considered small is unknown. During the 
comment period for our proposed rule we did not receive any information 
on the number of small entities that might be affected.
    Firms within the U.S. freight trucking industry (NAICS category 
48411) will benefit from the rule by providing transportation services 
for the Mexican oranges, tangerines, and grapefruit between U.S. land 
ports and the ocean ports of Corpus Christi and Houston. The majority 
of U.S. trucking businesses (81 percent) are considered small entities 
according to SBA criteria.
    U.S. firms overall will benefit from the availability of the two 
additional ocean ports to handle and export in-transit oranges, 
tangerines, and grapefruit from Mexico, to the extent that the 
shipments handled at these two ports are additional volumes rather than 
diversions that would otherwise transit through the seaport of 
Galveston or elsewhere.
    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 12372

    This program/activity is listed in the Catalog of Federal Domestic 
Assistance under No. 10.025 and is subject to Executive Order 12372, 
which requires

[[Page 49325]]

intergovernmental consultation with State and local officials. (See 7 
CFR part 3015, subpart V.)

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule: (1) Preempts all State and local laws 
and regulations that are inconsistent with this rule; (2) has no 
retroactive effect; and (3) does not require administrative proceedings 
before parties may file suit in court challenging this rule.

Paperwork Reduction Act

    The proposed rule that preceded this final rule contains no new 
information collection or recordkeeping requirements under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). However, due 
to changes made in response to comments, the information collection 
burden in this final rule includes 200 hours that were not included in 
the proposed rule. Specifically, the additional hours are for the 
trucking industry and shippers to obtain permits for moving untreated 
oranges, tangerines, or grapefruit through the United States, which 
were added to the coverage of the final rule. In accordance with 
section 3507(d) of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
et seq.), we submitted this information collection requirement for 
approval to the Office of Management and Budget (OMB). OMB has approved 
the information collection for a period of 6 months under control 
number 0579-0303. We plan, in the near future, to request continuation 
of that approval for 3 years.

E-Government Act Compliance

    The Animal and Plant Health Inspection Service is committed to 
compliance with the E-Government Act to promote the use of the Internet 
and other information technologies, to provide increased opportunities 
for citizen access to Government information and services, and for 
other purposes. For information pertinent to E-Government Act 
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 352

    Customs duties and inspection, Imports, Plant diseases and pests, 
Quarantine, Reporting and recordkeeping requirements, Transportation.

0
Accordingly, we are amending 7 CFR part 352 as follows:

PART 352--PLANT QUARANTINE SAFEGUARD REGULATIONS

0
1. The authority citation for part 352 continues to read as follows:

    Authority: 7 U.S.C. 7701-7772 and 7781-7786; 21 U.S.C. 136 and 
136a; 31 U.S.C. 9701; 7 CFR 2.22, 2.80, and 371.3.


0
2. In Sec.  352.1, paragraph (b), the definition of inspector is 
revised to read as follows:


Sec.  352.1  Definitions.

* * * * *
    (b) * * *
    Inspector. Any individual authorized by the Administrator of APHIS 
or the Commissioner of Customs and Border Protection, Department of 
Homeland Security, to enforce the regulations in this part.
* * * * *

0
3. Section 352.30 is amended as follows:
0
a. By revising the section heading to read as set forth below.
0
b. In the introductory text, by adding the word ``untreated'' before 
the word ``oranges.''
0
c. In paragraph (a)(3), in the paragraph heading, by removing the words 
``refrigerator cars and aircraft'' and adding the words ``refrigerated 
containers'' in their place, and in the first sentence after the 
paragraph heading, by removing the words ``Refrigerator cars and 
aircraft'' and adding the words ``Refrigerated containers'' in their 
place.
0
d. By revising paragraph (a)(4)(ii) to read as set forth below.
0
e. In paragraph (a)(4)(iii), by removing the words ``trucks, 
refrigerator cars, aircraft, and ships'' and adding the words 
``refrigerated containers'' in their place.
0
f. By revising paragraph (b) to read as set forth below.
0
g. By removing paragraph (c)(3).
0
h. By revising paragraph (e) to read as set forth below.
0
i. By adding an OMB paperwork citation to read as set forth below.


Sec.  352.30  Untreated oranges, tangerines, and grapefruit from 
Mexico.

* * * * *
    (a) * * *
    (4) * * *
    (ii) Untreated oranges, tangerines, and grapefruit arriving from 
Mexico at authorized ports in the United States for movement to a 
foreign country shall be loaded into refrigerated containers and 
preinspected by an inspector for freedom of citrus leaves before entry 
into the United States or be accompanied by an acceptable certificate 
from an inspector as to such freedom. Refrigerated containers loaded 
with untreated oranges, tangerines, and grapefruit that are not free of 
such leaves will be denied entry into the United States.
* * * * *
    (b) Additional conditions for overland movement of certain 
untreated fruit. Untreated oranges, tangerines, and grapefruit from 
Mexico may move overland through the United States to a foreign country 
only in accordance with the following additional conditions:
    (1) Ports of entry. Such fruit may enter only at Nogales, AZ, or 
Eagle Pass, El Paso, or Laredo, TX.
    (2) General transit conditions. The following conditions apply to 
all shipments of untreated oranges, tangerines, and grapefruit from 
Mexico transiting the United States for movement to a foreign country:
    (i) The fruit must be packed in insect-proof boxes or crates that 
prevent the escape or entry of adult, larval, or pupal fruit flies.\4\
---------------------------------------------------------------------------

    \4\ If there is a question as to whether packaging is adequate, 
send a request for approval of the packaging, together with a sample 
of the packaging, to the Animal and Plant Health Inspection Service, 
Plant Protection and Quarantine, Center for Plant Health Science and 
Technology, 1730 Varsity Drive, Suite 400, Raleigh, NC 27606.
---------------------------------------------------------------------------

    (ii) Boxes or cartons of fruit must be enclosed in sealed, 
refrigerated containers of the type commonly used by the maritime or 
commercial trucking industry. An official seal must be applied to the 
container at the port of entry. The seal must not be removed except by 
an inspector, or after the shipment has left the United States.
    (iii) The temperature in the refrigerated containers in which the 
fruit is transported must be maintained at 60 [deg]F or lower.
    (iv) If the seal on the containers in which such fruit is shipped 
is found to have been broken, for any reason, before the container 
leaves the United States, or if the cooling system in the containers 
fails at any point during transit, an inspector at the port of entry 
must be contacted immediately.
    (v) A transportation and exportation permit must be issued by an 
inspector for each shipment. This permit can be obtained from APHIS 
headquarters.\5\
---------------------------------------------------------------------------

    \5\ To obtain this permit, contact the Animal and Plant Health 
Inspection Service, Plant Protection and Quarantine, Permit Unit, 
4700 River Road Unit 133, Riverdale, MD 20737.
---------------------------------------------------------------------------

    (vi) If untreated fruit is transloaded to another container while 
in the United States, the transloading must be supervised by an 
inspector and a replacement official seal must be applied to the 
container to which the fruit is moved.

[[Page 49326]]

    (vii) Shipments of such fruit must move by direct route, in Customs 
bond and under official seal, without diversion or change of entry en 
route, from the port of entry to the port of exit or to an approved 
port in the United States for export to another foreign country.
    (viii) Shipments of such fruit may not traverse the counties of 
Cameron, Hidalgo, Starr, or Willacy, TX. Shipments of such fruit may 
only traverse areas listed under each type of carrier listed below.
    (3) Truck movement. Trucks may haul refrigerated containers of such 
fruit from Mexico to shipside, or to approved refrigerated storage 
pending lading aboard ship, in Corpus Christi, Galveston, or Houston, 
TX, or alongside railway carriers or aircraft at the ports named in 
paragraph (b)(2) of this section for movement to a foreign country. 
Shipments of such fruit via truck may traverse only the territory 
within the United States bounded on the west by a line starting at 
Laredo, TX, on to El Paso, TX, to Salt Lake City, UT, and then to 
Portland, OR, and on the east by a line drawn from Laredo, TX to 
Hebbronville, TX, to Corpus Christi, TX, to Galveston, TX, to Kinder, 
LA, to Memphis, TN, and then to Louisville, KY, and routes directly 
northward.
    (4) Rail movement. Shipments must move by direct route from the 
port of entry to the port of exit or to an approved North Atlantic port 
in the United States for export to another foreign country, as follows: 
The fruit may be entered at Nogales, AZ, only for direct rail routing 
to El Paso, TX, after which it shall traverse only the territory 
bounded on the west by a line drawn from Laredo, TX, to El Paso, TX, to 
Salt Lake City, UT, and then to Portland, OR, and on the east by a line 
drawn from Laredo, TX, to Hebbronville, TX, to Corpus Christi, TX, to 
Galveston, TX, to Kinder, LA, to Memphis, TN, and then to Louisville, 
KY, and routes directly northward. Such fruit may also enter the United 
States from Mexico at any port listed in paragraph (b)(1) of this 
section, for direct eastward rail movement, without diversion en route, 
for reentry into Mexico.
    (5) Air cargo movement. Shipments of such fruit may move by direct 
route as air cargo, without change of entry while in the United States 
en route from the port of entry, to Canada. If an emergency occurs en 
route to the port of export that will require transshipment to another 
carrier, an inspector at the port of entry must be contacted 
immediately.
* * * * *
    (e) Untreated fruit from certain municipalities in Mexico. Oranges, 
tangerines, and grapefruit in transit to foreign countries may be 
imported from certain municipalities in Mexico listed in Sec.  319.56-
2(h) of this chapter in accordance with the applicable conditions in 
Sec. Sec.  319.56 through 319.56-8 of this chapter.
* * * * *
(Approved by the Office of Management and Budget under control 
number 0579-0303)

    Done in Washington, DC, this 17th day of August 2006.
Kevin Shea,
Acting Administrator, Animal and Plant Health Inspection Service.
 [FR Doc. E6-13986 Filed 8-22-06; 8:45 am]
BILLING CODE 3410-34-P