[Federal Register Volume 72, Number 206 (Thursday, October 25, 2007)]
[Rules and Regulations]
[Pages 60537-60541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-21007]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 319

[Docket No. APHIS-2006-0133]
RIN 0579-AC20


Importation of Unshu Oranges From the Republic of Korea Into 
Alaska

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: We are amending the regulations governing the importation of 
citrus fruit to allow fresh Unshu oranges from the Republic of Korea to 
be imported into the State of Alaska under certain conditions. As a 
condition of entry, the oranges will have to be prepared for shipping 
using packinghouse procedures that include culling of damaged or 
diseased fruit and cleaning with high-pressure air or water in 
combination with brushing. In addition, the oranges will have to be 
accompanied by a phytosanitary certificate with an additional 
declaration stating that the oranges were inspected and found free from 
Xanthomonas axonopodis pv. citri and Unaspis yanonensis. The individual 
cartons or boxes in which the Unshu oranges are shipped will also have 
to be marked with a statement restricting their importation and 
distribution to the State of Alaska. This action will allow for the 
importation of Unshu oranges from the Republic of Korea into Alaska 
while continuing to provide protection against the introduction of 
quarantine pests.

DATES: Effective Date: November 26, 2007.

FOR FURTHER INFORMATION CONTACT: Mr. Alex Belano, Import Specialist, 
Commodity Import Analysis and Operations, Plant Health Programs, PPQ, 
APHIS, 4700 River Road Unit 133, Riverdale, MD 20737-1231; (301) 734-
8765.

SUPPLEMENTARY INFORMATION: 

Background

    Citrus canker is a disease that affects citrus and is caused by the 
infectious bacterium Xanthomonas axonopodis pv. citri (also known as 
Xanthomonas campestris pv. citri and Xanthomonas citri). Currently, the 
regulations in 7 CFR 319.28 (referred to below as the regulations) 
allow the importation of Unshu oranges (Citrus reticulata var. unshu) 
from certain areas in the Republic of Korea (South Korea) into certain 
areas of the United States under a permit and after the specified 
safeguards of a preclearance program have been met to prevent the 
introduction of citrus canker. However, the importation of Unshu 
oranges from South Korea was administratively suspended in 2002 due to 
the increased number of interceptions of the causal agent of citrus 
canker at various packinghouses in South Korea.
    In 2005, the national plant protection organization (NPPO) of South 
Korea requested that the Animal and Plant Health Inspection Service 
(APHIS) allow the shipment of Unshu oranges into the State of Alaska 
until the pest risk of citrus canker from South Korea could be 
adequately mitigated for the rest of the United States.
    On December 4, 2006, we published in the Federal Register (71 FR 
70330-70335, Docket No. APHIS-2006-0133) a proposal \1\ to allow the 
importation of fresh Unshu oranges from the Republic of Korea into the 
State of Alaska under certain conditions. As a condition of entry, we 
proposed that the oranges would have to be prepared for shipping using 
packinghouse procedures that include culling of damaged or diseased 
fruit and washing in a water bath. In addition, we proposed that the 
oranges would have to be accompanied by a phytosanitary certificate 
with an additional declaration stating that the oranges were inspected 
and found free from Xanthomonas axonopodis pv. citri and Unaspis 
yanonensis. The individual cartons or boxes in which the Unshu oranges 
are shipped would also have to be marked with a statement restricting 
their importation and distribution to the State of Alaska. This action 
was intended to allow for the importation of Unshu oranges from the 
Republic of Korea into Alaska while continuing to provide protection 
against the introduction of quarantine pests.
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    \1\ To view the proposed rule and the comments we received, go 
to http://www.regulations.gov/fdmspublic/component/main?main=DocketDetail&d=APHIS-2006-0133.
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    We solicited comments concerning our proposal for 60 days ending 
February 2, 2007. We received two comments by that date, both from 
domestic citrus industry groups. One of the commenters expressed 
concern that a pesticide not approved for use in the United States 
could be imported on fruit from South Korea. While the United States 
does not have direct control over pesticides that are used on food 
commodities such as Unshu oranges in other countries, there are 
regulations in the United States concerning the importation of food to 
ensure that commodities do not enter the United States containing 
illegal pesticide residues. Through section 408 of the Federal Food, 
Drug, and Cosmetic Act, the Environmental Protection Agency (EPA) has 
the authority to establish, change, or cancel tolerances for food 
commodities. These tolerances are the maximum levels of pesticide 
residues that have been determined, through comprehensive safety 
evaluations, to be safe for human consumption. Tolerances apply to both 
food commodities that are grown in the United States and food 
commodities that are grown in other countries and imported into the 
United States. While EPA has no authority in a foreign country, the 
tolerance levels are enforced once the commodity enters the

[[Page 60538]]

United States. Chemicals such as DDT that are banned in the United 
States do not have tolerances on food commodities. Federal Government 
food inspectors are responsible for monitoring food commodities that 
enter the United States to confirm that tolerance levels are not 
exceeded and that residues of pesticide chemicals that are banned in 
the United States are not present on the commodities. Tolerance levels 
for all chemicals that are acceptable for use on Unshu oranges may be 
found in EPA's regulations in 40 CFR 180.101 through180.2020. Tolerance 
information can also be obtained at http://www.epa.gov/pesticides/food/viewtols.htm.
    Both commenters expressed concern that the systems approach 
developed by South Korea was not stringent enough, given the difficulty 
of eradicating X. axonopodis pv. citri (citrus canker) and the 
potential risks from asymptomatic fruit. Concerns included the lack of 
requirements for worker training, equipment sanitation, and 
establishment of buffer zones. In particular, the commenters were 
concerned that the proposed rule did not mention inspection or sampling 
rates for citrus canker. As stated in the proposed rule, shipments of 
Unshu oranges to Alaska present minimal risk of introducing or 
disseminating citrus canker due to the lack of host material within 
Alaska and the lack of a suitable climate for establishment of the 
disease. For those reasons, and because visibly infected fruit will be 
culled at the packinghouse, we are not requiring a sampling regime for 
Unshu oranges within South Korea. In addition, fruit exposed to, but 
asymptomatic for, citrus canker is unlikely to have sufficient levels 
of viable bacteria to cause infection. However, a standard port of 
entry inspection rate of 2 percent would apply. APHIS has successfully 
operated similar programs of low risk for tropical fruit commodities 
imported into Alaska, such as sand pears and apples from Japan, 
avocados from Mexico, and sand pears from South Korea.
    Both commenters also stated that, despite labeling restricting 
distribution of the fruit to Alaska, it may accidentally be redirected 
or sent through first-class mail to a citrus-producing State. As stated 
in the risk management document, in the past 10 years, over 24 million 
Unshu oranges from South Korea have been imported and only one air 
shipment of misdirected fruit ended up in a citrus-producing State. 
That shipment was immediately redirected to a non-citrus-producing 
State. In order for the fruit to leave Alaska by ground transport, it 
would have to travel by truck or car via highway, and all agricultural 
shipments are inspected at the U.S.-Canada border. As citrus fruit is 
not grown in Canada or Alaska, import restrictions for non-U.S. citrus 
fruit would apply. Further, we consider the volume of fruit shipped in 
first-class mail to be too small to present a potential pest risk. The 
probability of potentially infected citrus fruit reaching areas where 
any disease could spread is very low.
    Both commenters further expressed concern regarding the lack of a 
requirement for sodium hypochlorite or sodium orthophenyl phenol in the 
required water bath and concern that the water bath could contribute to 
the spread of citrus canker. As stated above, we believe shipments of 
Unshu oranges to Alaska present a minimal risk of introducing or 
disseminating citrus canker due to the lack of host material and the 
lack of a suitable climate for establishment of the disease; therefore 
requiring the use of a disinfectant wash is not necessary. In addition, 
because the water bath requirement is actually a combination high-
pressure water spray and brushing intended to remove external insect 
pests, there is no standing water that can serve as a medium for 
transmitting infection. Alternately, forced air cleaning and brushing 
may be used in place of the water spray. We have amended the regulatory 
text in Sec.  319.28(c)(1) to make that clear.
    Finally, both commenters stated that U.S. inspectors should be 
present to oversee all aspects of South Korea's citrus export program. 
In a preclearance program, U.S. inspectors are required to be onsite in 
the country of export to oversee shipments to the United States. 
However, the program for importing Unshu oranges to Alaska from South 
Korea is not a preclearance program. Therefore, the presence of U.S. 
inspectors to oversee the program is not required and, based on the 
reasons given in the proposed rule, is not necessary.
    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 
change 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.
    The United States is not a commercial producer of Unshu oranges 
(Citrus reticulata var. unshui). The United States does produce other 
mandarin varieties of Citrus reticulata, such as tangerines and Satsuma 
mandarins. Effects of the final rule on U.S. entities will depend on 
(1) the substitutability in Alaska of Unshu oranges for these other 
mandarin varieties, and (2) Alaska's share of the U.S. supply of the 
other mandarin varieties. We address these overriding issues before 
discussing small entities that may be affected.
    Unshu orange prices are higher than the prices of U.S.-grown 
mandarin varieties, indicating that they are not close substitutes. 
Retail prices of Unshu oranges are approximately $1.20 per pound, 
whereas other mandarin varieties, such as Satsuma, range from $0.60 to 
$1 per pound depending on the time of year.\2\
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    \2\ Information on retail prices of Unshu oranges provided by 
Jerry Kraft of The Oppenheimer Group, the sole importer of Unshu 
oranges from Japan.
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    Clearly, the effects of the final rule with respect to Alaska's 
broadly defined demand for all mandarin varieties are most likely to be 
very limited. Rather, we expect reestablished imports from South Korea 
to compete for a share of Alaska's Unshu orange market.
    Prior to the administrative suspension in 2002, South Korea and 
Japan were principal suppliers of Unshu oranges to the United States. 
It is estimated that Alaska consumes approximately 30 percent of the 
Unshu oranges imported from Japan. Quantities of Unshu oranges imported 
from South Korea and Japan, 1995 to 2005, are shown in table 1.

[[Page 60539]]



Table 1.--Unshu Orange Imports by the United States From South Korea and
                            Japan, 1995-2005
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                  Year                      South Korea        Japan
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                                                    Metric tons
                                         -------------------------------
1995....................................              50             231
1996....................................             220             160
1997....................................           1,190             143
1998....................................              40             223
1999....................................             380             342
2000....................................             240             106
2001....................................           1,434             291
2002....................................           1,601           (\1\)
2003....................................  ..............             275
2004....................................  ..............             271
2005....................................  ..............             256
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Source: USDA, APHIS, International Services.
\1\ In 2002, we amended the regulations to allow Unshu oranges from
  Honshu Island, Japan, to be imported into the previously prohibited
  citrus-producing States of Arizona, California, Florida, Hawaii,
  Louisiana, and Texas. That same rule imposed a fumigation requirement
  for all Unshu oranges from Honshu Island, which seriously curtailed
  the market for that fruit in non-citrus producing States. As a result,
  there were no exports of Unshu oranges from Japan to the United States
  in 2002. We subsequently amended the regulations to apply the
  fumigation requirement only to fruit bound for citrus-producing
  States, and exports resumed in 2003.

    Unshu orange imports from Japan between 1995 and 2005 averaged 238 
metric tons per year.\3\ Average imports of Unshu oranges from South 
Korea between 1995 and 2002 were 644 metric tons per year, with 
significant year-to-year fluctuations and the average for 2001 and 2002 
jumping to 1,518 metric tons. Imports of Unshu oranges from Japan have 
maintained a more steady supply, even in the more recent years during 
which Unshu oranges from South Korea have been administratively 
suspended. From this data, it is not apparent that South Korean 
supplies will significantly displace Unshu orange imports from Japan.
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    \3\ This average does not include 2002, since it is likely that 
Japan would have exported Unshu oranges to the United States in that 
year if the fumigation requirement described in footnote 1 of table 
1 had not been in place.
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    According to the pest risk assessment prepared for this rulemaking, 
the quantity of Unshu oranges that will be imported from South Korea 
into Alaska each year is estimated to be between 200 and 2,000 metric 
tons (440,925 and 4,409,245 pounds), based on projected imports of 
between 10 and 100 standard 40-foot containers.\4\ The lower end of 
this range of imports will be comparable to recent import levels from 
Japan. Based upon the past shipments detailed in table 1, we anticipate 
that imports of Unshu oranges from South Korea will not exceed 75 
containers (1,500 metric tons) per annum. The historical import data 
detailed in table 1 suggest that South Korean supplies will not 
significantly displace Japanese Unshu oranges on the Alaskan market.
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    \4\ USDA, APHIS, PPQ-CHPST, ``A Qualitative Pest Risk Analysis 
for the Importation of Fresh Unshu Orange Fruit (Citrus reticulata 
Blanco var. unshu Swingle) from the Republic of Korea,'' May 25, 
2006, pg 33.
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    Our expectation is that the final rule will have little effect on 
U.S. producers of mandarin varieties such as tangerines and Satsumas. 
Any impact for these producers will be small, given that the various 
mandarin varieties do not appear to be close substitutes for Unshu 
oranges. Moreover, only sales to Alaska will be affected. However, 
recognizing that our information for determining possible effects of 
the final rule is incomplete, we present here data on U.S. tangerine 
trade and production.
    The United States is a net importer of mandarins (including 
Satsumas and tangerines). In 2005, the United States imported 209.4 
million pounds of mandarins (including Satsumas and tangerines) with 
approximately 91 percent arriving from Spain. In that same year, the 
United States exported approximately 48.1 million pounds of mandarins 
(including Satsumas and tangerines). Canada is the largest importer of 
U.S. fresh mandarins, accounting for 52 percent of U.S. exports. The 
second and third largest importers of U.S. mandarins are South Korea 
and Japan, accounting for approximately 38 and 6 percent of exports, 
respectively.\5\ U.S. imports of tangerines experienced an average 
increase of 17.8 percent annually over the last decade while exports 
have increased an average of 5.9 percent.\6\ Domestic production 
accounted for approximately 80 percent of domestic fresh consumption in 
2005.\7\ The United States relies on imports of mandarins to supplement 
domestic production in satisfying domestic demand. Fresh utilization of 
U.S. mandarin and tangerine production only accounts, on average, for 
70 percent of total utilized production annually.\8\ U.S. grower 
revenue from fresh tangerine production in 2004-05 was approximately 
$107.4 million.\9\
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    \5\ Source: Global Trade Atlas.
    \6\ Source: USDA, FAS, PS&D Online. ``Fresh Tangerines: 
Production, Supply and Distribution in selected Countries,'' http://www.fas.usda.gov/psdonline/psdDownload.aspx.
    \7\ The proportion of domestic fresh consumption attributed to 
U.S. production is production less exports and processed 
utilization. Data Source: USDA ERS Briefing Room, Fruit and Tree Nut 
Yearbook, 2005.
    \8\ USDA, ERS Briefing Room, Fruit and Tree Nut Yearbook, 2005.
    \9\ Florida Agricultural Statistics Service (FASS), National 
Agricultural Statistics Service (NASS), USDA, ``Citrus Summary 2004-
05,'' February 2006.
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    U.S. tangerine production, imports, and domestic supplies are shown 
in table 2. Net imports were 20 percent of domestic supply in 2004 to 
2005.

[[Page 60540]]



          Table 2.--U.S. Fresh Tangerine Production and Importation, Seasons 1999-2000 through 2004-05
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                                                                                    Net imports
                              Year                                Production \a\        \b\         Supply \c\
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                                                                                    Metric tons
                                                                 -----------------------------------------------
1999-00.........................................................         298,464          68,185         366,649
2000-01.........................................................         266,712          85,728         352,440
2001-02.........................................................         296,649          37,261         333,910
2002-03.........................................................         289,392          69,164         358,556
2003-04.........................................................         295,742          72,753         368,495
2004-05.........................................................         254,919          63,944         318,863
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Data Source: USDA/ERS Briefing Room,Fruit and Tree Nut Yearbook, 2005.
\a\ Excludes processed fruit.
\b\ Net imports are imports minus exports.
\c\ U.S. production (excluding processed utilization) plus net imports.

    The small business size standard for tangerine groves, as 
identified by the Small Business Administration (SBA) based upon the 
North American Industry Classification System (NAICS) code 111320, is 
$750,000 or less in annual receipts.\10\
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    \10\ Based upon 2002 Census of Agriculture, State Data and the 
``Small Business Size Standards by NAICS Industry,'' Code of Federal 
Regulations, Title 13, Chapter 1.
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    While available data do not provide the size distribution of U.S. 
tangerine farms by annual receipts, it is reasonable to assume that the 
majority of the operations are small businesses by SBA standards.\11\ 
According to the 2002 Census of Agriculture data, there were a total of 
1,731 tangerine operations in the United States in 2002.\12\ It is 
estimated that approximately 93 percent of all citrus-producing farms 
had annual sales in 2002 of $500,000 or less.
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    \11\ Based upon 2002 Census of Agriculture, State Data.
    \12\ The number of tangerine farms in the United States, as 
reported by the 2002 Census of Agriculture, includes operations that 
produced tangerines for processed utilization.
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    If Unshu oranges and U.S.-grown mandarin varieties were close 
substitutes, then U.S. entities could be affected to the extent that 
Unshu orange imports from South Korea would displace sales in Alaska of 
the U.S.-grown mandarin varieties. Small entities would be affected, 
since they comprise a substantial number of the producers of mandarin 
varieties, as indicated by the data on tangerine operations. However, 
even if all Unshu orange imports from South Korea were to directly 
replace consumption of U.S.-grown tangerines in Alaska, the effect on 
U.S. producers will be very minor. Under such a scenario, annual 
imports of Unshu oranges from South Korea of 2,000 metric tons (the 
upper limit of the projected range of imports) will displace less than 
1 percent of fresh tangerines produced by U.S. operations in 2004-05. 
We emphasize that even a small impact for U.S. producers such as this 
is highly unlikely.
    We expect that any product displacement that may occur as a result 
of the changes will be borne by other foreign suppliers of Unshu 
oranges, in particular Japan's exporters. However, we do not expect any 
significant product displacement as a result of South Korean supplies. 
Alaska's Unshu orange consumers may benefit to the extent that the 
competition results in price declines.
    An alternative to this final rule was to continue with the 2002 
administrative suspension of the importation of Unshu oranges from 
South Korea into all parts of the United States, including Alaska. 
Continuing the suspension of South Korean Unshu orange imports into 
Alaska is not a satisfactory alternative to the final rule. The final 
rule's specified mitigation measures will ensure a low risk of 
introduction of citrus canker and Diaspidad scale into the United 
States. Resumption of imports will reestablish competition with 
Japanese suppliers, benefitting U.S. consumers but with little if any 
expected effect on U.S. producers.
    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 fresh Unshu oranges to be imported into the 
State of Alaska from South Korea. State and local laws and regulations 
regarding Unshu oranges imported under this rule will be preempted 
while the fruit is in foreign commerce. Fresh fruits are generally 
imported for immediate distribution and sale to the consuming public, 
and remain in foreign commerce until sold to the ultimate consumer. The 
question of when foreign commerce ceases in other cases must be 
addressed on a case-by-case basis. No retroactive effect will be given 
to this rule, and this rule will not require administrative proceedings 
before parties may file suit in court challenging this rule.

Paperwork Reduction Act

    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 0579-0314.

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 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, 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.


0
2. Section 319.28 is amended as follows:
0
a. By redesignating paragraphs (c) through (i) as paragraphs (d) 
through (j), respectively.
0
b. By adding a new paragraph (c) to read as set forth below.
0
c. By revising newly redesignated paragraph (f) to read as set forth 
below.

[[Page 60541]]

Sec.  319.28  Notice of quarantine.

* * * * *
    (c) The prohibition does not apply to Unshu oranges (Citrus 
reticulata Blanco var. unshu, Swingle [Citrus unshiu Marcovitch, 
Tanaka]), also known as Satsuma mandarin, grown in the Republic of 
Korea and imported under permit into the State of Alaska under the 
following conditions:
    (1) The Unshu oranges must be prepared for shipping using 
packinghouse procedures that include culling damaged or diseased fruit 
and cleaning the fruit with high-pressure air or water spray in 
combination with brushing.
    (2) Each shipment of Unshu oranges must be accompanied by a 
phytosanitary certificate from the national plant protection 
organization of the Republic of Korea bearing the following additional 
declaration: ``These oranges were inspected and are considered to be 
free from citrus canker (Xanthomonas axonopodis pv. citri) and 
arrowhead scale (Unaspis yanonensis).
    (3) The individual boxes in which the oranges are shipped must be 
marked with the following: ``These oranges may not be shipped to or 
distributed in any State other than Alaska.''
* * * * *
    (f) Importations allowed in paragraphs (b), (c), (d), and (e) of 
this section shall be subject to the permit and other requirements 
under the regulations in Subpart-Fruits and Vegetables of this part.
* * * * * *
(Approved by the Office of Management and Budget under control 
number 0579-0314)

    Done in Washington, DC, this 19th day of October, 2007.
Kevin Shea,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. E7-21007 Filed 10-24-07; 8:45 am]
BILLING CODE 3410-34-P