[Federal Register Volume 82, Number 100 (Thursday, May 25, 2017)]
[Rules and Regulations]
[Pages 23999-24001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-10678]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 944, 980, and 999

[Doc. No. AMS-SC-16-0083; SC16-944/980/999-1 FIR]


Changes to Reporting and Notification Requirements and Other 
Clarifying Changes for Imported Fruits, Vegetables, and Specialty Crops

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of the interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that updated reporting and 
notification requirements associated with, and made clarifying changes 
to, the fruit, vegetable, and specialty crop import regulations for 
certain commodities regulated under section 608(e) (hereinafter 
referred to as ``8e'') of the Agricultural Marketing Agreement Act of 
1937. The interim rule shifted the exempt reporting requirement for 
imported tomatoes destined for noncommercial outlets for experimental 
purposes from the tomato import regulations to the safeguard procedures 
section of the vegetable import regulations. In addition, the pistachio 
import regulations were updated by removing reference to a paper-based 
notification of entry process. Other administrative changes were made 
to several of the 8e regulations to replace outdated information. These 
changes to the import regulations support the International Trade Data 
System (ITDS), a system that streamlines and automates the filing of 
import and export information by the trade.

DATES: Effective May 30, 2017.

FOR FURTHER INFORMATION CONTACT: Shannon Ramirez, Compliance and 
Enforcement Specialist, or Vincent Fusaro, Compliance and Enforcement 
Branch Chief, Specialty Crops Program, AMS, USDA; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: [email protected] or 
[email protected].
    Small businesses may obtain information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement

[[Page 24000]]

Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under section 8e of the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.'' Section 8e provides that 
whenever certain commodities are regulated under Federal marketing 
orders, imports of those commodities into the United States are 
prohibited unless they meet the same or comparable grade, size, 
quality, and/or maturity requirements as those in effect for the 
domestically produced commodities. The Act also authorizes USDA to 
perform inspections and other related functions (such as commodity 
sampling) on those imported commodities and to certify whether these 
requirements have been met.
    Parts 944, 980, and 999 of title 7 of the Code of Federal 
Regulations (CFR) specify inspection, certification, and reporting 
requirements for imported commodities regulated under 8e. These parts 
also list the imported commodities that may be exempt from grade, size, 
quality, and/or maturity requirements when imported for specific 
purposes (such as processing, donation to charitable organizations, or 
livestock feed). Additionally, these parts specify the form importers 
must use to report to USDA and the U.S. Customs and Border Protection 
(CBP) imports of commodities exempt from 8e regulations.
    USDA is issuing this rule in conformance with Executive Orders 
12866, 13771, 13563, and 13175.
    This rule continues in effect an interim rule clarifying change to 
part 980, the vegetable import regulations. The interim rule moved the 
procedure for filing an exempt commodity form for tomatoes destined for 
noncommercial outlets for experimental purposes from Sec.  980.212 of 
the tomato import regulations to Sec.  980.501 of the vegetable 
safeguard procedures import regulations. This change removed reference 
to a form that does not exist for imports and made the safeguard 
regulations consistent for all imported vegetables that are exempt from 
8e regulations.
    This rule also continues in effect the change to Sec.  999.600 of 
the pistachio import regulations that removed the reference to a paper-
based notification of entry process, known in the industry as the 
``stamp and fax'' process. This paper-based process was replaced by an 
electronic filing requirement that was developed to comply with the 
International Trade Data System (ITDS) and was specified within the 
USDA's Agricultural Marketing Service (AMS) Specialty Crops Inspection 
Division's regulations in an interim rule published in the Federal 
Register on December 21, 2016 (81 FR 93571). Removing this outdated 
information streamlines the regulations and provides consistency among 
the specialty crop import regulations.
    This rule also continues in effect other minor administrative 
changes to Sec. Sec.  944.401, 999.1, and 999.600 of the fruit and 
specialty crop import regulations. These changes, which include 
updating agency and program names and removing or updating other 
information that was duplicative or out of date, helps ensure the 
import regulations contain accurate information and align with the ITDS 
objective of streamlining import processes for the trade.
    AMS has determined that these changes to the fruit, vegetable, and 
specialty crop import regulations meet CBP's requirements for ITDS by 
shifting an exempt-tomato reporting requirement to the proper safeguard 
procedures section of the vegetable import regulations. These 
regulations were revised in 2015 to provide an electronic filing 
option; streamline an entry notification process for imported 
pistachios; and remove or revise duplicative or outdated information. 
These changes help reduce the burden on America's import trade without 
compromising AMS' ability to ensure compliance with its import 
regulations.
    In an interim rule published in the Federal Register on December 5, 
2016, and effective on December 8, 2016 (81 FR 87409, Doc. No. AMS-SC-
164-0083, SC16-944/980/999-1 IR), clarifying changes were made to part 
980 by moving the exempt-use reporting requirements for tomatoes 
destined for noncommercial outlets for experimental purposes from Sec.  
980.212 (tomato import regulations) to Sec.  980.501 (safeguard 
procedures section for imported vegetables).
    In addition, Sec.  999.600(d) of the pistachio import regulations 
was revised to remove the paper-based ``stamp and fax'' process, which 
has been replaced by an electronic process that importers now use to 
notify AMS of an initial request for inspection.
    Finally, several administrative changes were made to various 
sections in parts 944 and 999 (the fruit and specialty crop import 
regulations, respectively). First, the USDA agency and program names 
were updated, where needed. Second, Sec. Sec.  944.401(e) (olives) and 
999.1(c)(1) (dates) were changed by simplifying the language regarding 
the requirement that importers provide USDA inspectors with identifying 
information about each lot being inspected. Finally, Sec.  999.1(e) 
(dates) was updated by removing a paragraph titled ``importation,'' 
because it contained redundant and incomplete information about filing 
inspection or exemption documents with CBP.

Executive Orders 12866 and 13771, and Final Regulatory Flexibility 
Analysis

    This rule does not meet the definition of a significant regulatory 
action contained in section 3(f) of Executive Order 12866, and is not 
subject to review by the Office of Management and Budget (OMB). 
Additionally, because this rule does not meet the definition of a 
significant regulatory action it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017 titled `Reducing Regulation and Controlling Regulatory 
Costs' '' (February 2, 2017). Pursuant to requirements set forth in the 
Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), AMS has considered 
the economic impact of this action on small entities. Accordingly, AMS 
has prepared this final regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened.
    Small agricultural service firms, which includes importers, are 
defined by the Small Business Administration (SBA) as those having 
annual receipts of less than $7,500,000 (13 CFR 121.201).
    Based on 2015 reporting, USDA estimates that there were two 
importers and two receivers of tomatoes that were exempt from 8e 
requirements. Although USDA does not have access to data about the 
business sizes of these importers and receivers, it is likely that the 
majority may be classified as large entities.
    This rule continues in effect the action that moved the 
requirements for reporting imported tomatoes destined for noncommercial 
outlets for experimental purposes, which are exempt from 8e 
regulations, from the tomato import regulations to the safeguard 
section of the vegetable import regulations. This change to the 
regulations did not revise the procedures currently used by importers 
and receivers of exempt tomatoes;

[[Page 24001]]

instead, it shifted the outdated requirements contained in Sec.  
980.212 to the more appropriate safeguard procedures section in Sec.  
980.501. Most importers and receivers already file FV-6 forms 
electronically with AMS, while some paper forms are still submitted to 
AMS. In 2015, AMS estimates it received five electronic FV-6 forms and 
no paper FV-6 forms for approximately 14,900 pounds of exempt tomatoes.
    As part of the full implementation of ITDS, importers and receivers 
report exempt shipments through CBP's Automated Commercial Environment 
(ACE) system and AMS' Compliance and Enforcement Management System 
(CEMS). CEMS was developed by AMS to replace AMS' Marketing Order 
Online System (MOLS), an online system that was used from its 
implementation in 2008 until it was replaced by CEMS in 2016. An 
affirmation of interim rule as final rule was published in the Federal 
Register on June 25, 2015, (80 FR 36465) that provided for the 
electronic submission of FV-6 forms, a practice that has existed since 
MOLS was implemented in 2008 but was not reflected in the regulations. 
This action imposes no additional burden on importers and receivers of 
exempt tomatoes.
    Regarding alternatives to this action, AMS determined that these 
changes to the regulations were needed to comply with ITDS 
requirements. Moving an outdated, paper-based exempt form-filing 
requirement from the import tomato regulations to the safeguard section 
of the vegetable import regulations standardized the regulations and 
properly provided for the current requirement of filing a paper or 
electronic form FV-6, which benefits importers and receivers who import 
these exempt tomatoes. In addition, changing the pistachio regulations 
by removing the paper-based ``stamp and fax'' requirement streamlined 
the regulations and reduced the burden on the trade. The other 
administrative changes made in the interim rule provided the import 
trade with accurate information.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection requirements for the form FV-6 
(for commodities exempt from 8e requirements) have been previously 
approved by OMB and assigned OMB No. 0581-0167 (Specific Commodities 
Imported into United States Exempt From Import Regulations). No changes 
in the requirements for the FV-6 form as a result of this action are 
necessary. The shift of the requirements for exempt-use filings from 
the tomato import regulations to the safeguard section for imported 
vegetables was administrative in nature and did not change the practice 
that has existed for many years. Should any changes to form FV-6 become 
necessary in the future, they would be submitted to OMB for approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large importers or receivers of 
commodities exempt from 8e regulations. As with all import regulations, 
reports and forms are periodically reviewed to reduce information 
requirements and duplication by industry and public sector agencies. In 
addition, USDA has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this rule.
    Further, importers are already familiar with the long-existing 
process and requirement to file FV-6 forms for commodities exempt from 
8e regulations. Also, the import trade is fully aware of the ITDS 
initiative, which is designed to streamline and automate the filing of 
import shipment data.
    Comments on the interim rule were required to be received on or 
before February 3, 2017. No comments were received. Therefore, for the 
reasons given in the interim rule, we are adopting the interim rule as 
a final rule, without change.
    To view the interim rule, go to: https://www.regulations.gov/document?D=AMS-SC-16-0083-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, and 13563; the 
Paperwork Reduction Act (44 U.S.C. Chapter 35); and the E-Gov Act (44 
U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (81 FR 87409, December 5, 2016) will tend to 
effectuate the declared policy of the Act.

List of Subjects

7 CFR Part 944

    Avocados, Food grades and standards, Grapefruit, Grapes, Imports, 
Kiwifruit, Olives, Oranges.

7 CFR Part 980

    Food grades and standards, Imports, Marketing agreements, Onions, 
Potatoes, Tomatoes.

7 CFR Part 999

    Dates, Filberts, Food grades and standards, Imports, Nuts, 
Pistachios, Prunes, Raisins, Reporting and recordkeeping requirements, 
Walnuts.

PARTS 944, 980, AND 999--[AMENDED]

0
Accordingly, the interim rule that amended 7 CFR parts 944, 980, and 
999 that was published at 81 FR 87409 on December 5, 2016, is adopted 
as a final rule, without change.

    Dated: May 19, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-10678 Filed 5-24-17; 8:45 am]
 BILLING CODE 3410-02-P