[Federal Register Volume 82, Number 192 (Thursday, October 5, 2017)]
[Proposed Rules]
[Pages 46425-46426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-21183]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / 
Proposed Rules  

[[Page 46425]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 33 and 35

[Doc. No. AMS-FV-14-0099; FV15-33/35-1]


Regulations Issued Under Authority of the Export Apple Act and 
Export Grapes and Plums; Changes to Export Reporting Requirements; 
Withdrawal

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Withdrawal of proposed rule.

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SUMMARY: This document withdraws a proposed rule to change the 
reporting of export certificate information under regulations issued 
pursuant to the Export Apple Act and the Export Grape and Plum Act. 
After reviewing and considering the comments received, the agency has 
decided not to proceed with this action.

DATES: As of October 5, 2017, the proposed rule published on December 
5, 2016, at 81 FR 87486, is withdrawn.

FOR FURTHER INFORMATION CONTACT: Shannon Ramirez, Compliance and 
Enforcement Specialist, or Vincent Fusaro, Compliance and Enforcement 
Branch Chief, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (202) 720-2491, Fax: (202) 720-8938, or 
Email: [email protected] or [email protected].

SUPPLEMENTARY INFORMATION: This withdrawal is issued under the Export 
Apple Act (7 U.S.C. 581-590) and the Export Grape and Plum Act (7 
U.S.C. 591-599) (together hereinafter referred to as the ``Export Fruit 
Acts''). The Export Fruit Acts promote foreign trade of fruit grown in 
the United States by authorizing the implementation of regulations 
related to quality, container markings, and inspection requirements. 
These regulations are contained in 7 CFR part 33 (Regulations Issued 
under the Export Apple Act) and 7 CFR part 35 (Export Grapes and 
Plums).
    This action withdraws a proposed rule published in the Federal 
Register on December 5, 2016, (81 FR 87486) and reopened for further 
comment on January 23, 2017, (82 FR 7733) and February 23, 2017, (82 FR 
11413) on changes to the reporting of export certificate information 
under regulations issued under the Export Fruit Acts. Specifically, the 
proposed rule would have required shippers of apples and grapes 
exported from the United States that are subject to inspection to enter 
the certificate number from inspection certificates (i.e., Export Form 
Certificates) into the Automated Export System (AES). For apples 
shipped to Canada in bulk containers, which are exempt from inspection 
requirements, shippers would have been required to enter a special 
exemption code defined by the Department of Agriculture (USDA) in lieu 
of entering an Export Form Certificate number. Shippers would also have 
been required to maintain paper or electronic copies of the 
certificates and to provide copies of the certificates to the 
Agricultural Marketing Service (AMS) upon request. AMS is responsible 
for monitoring apple and grape export shipments, and these proposed 
regulatory changes would help ensure that these shipments comply with 
inspection and certification requirements.
    In addition, the proposed rule would have defined ``shipper'' and 
removed the requirement that carriers of exported apples and grapes 
retain certificates on file (because the requirement to retain the 
certificates would have shifted to shippers of exported apples and 
grapes). It would have also removed regulations that are no longer 
applicable to grape exports and would have added structure and language 
to clarify the regulations.
    Plums are not currently regulated under the Export Grape and Plum 
Act; therefore, this change would not have impacted shipments of plums 
exported from the United States.
    During the proposed rule's initial 30-day comment period (December 
5, 2016, through January 4, 2017), six comments were received. Two of 
those comments included requests to extend the comment period. To allow 
further public review of the proposed changes, USDA reopened the 
comment period for 60 days on January 23, 2017, and then further 
extended the comment period for an additional 30 days, through April 
24, 2017. Four comments were received during the reopened comment 
period. Two comments were also received on May 1, 2017, one week after 
the close of the comment period (these two comments, which were in 
letter form, were dated before the end of the comment period: March 22, 
2017, and April 10, 2017). All the comments may be viewed on the 
internet at http://www.regulations.gov. Of the twelve comments 
received, two requested an extension of the initial comment period (as 
noted above), five were in support, and five were opposed.
    In summary, the five supporting comments were generally brief and 
in favor of the proposed changes. The opposing comments detailed 
concerns about the impact of the proposed changes on shippers, 
specifically, and the export industry, generally. Some commenters noted 
that the changes would result in a substantive increase in burden and 
costs to shippers without adding quality benefits, stating that this 
could lead to reduced efficiency and vitality of export operations. One 
commenter indicated that requiring a shipper to maintain the export 
certificates on file would be a duplication of recordkeeping, because 
those same certificates are maintained for five years by the 
commenter's state agricultural department. Another commenter noted that 
the changes would represent a major barrier to trade because of the 
complicated logistics of ocean shipments of exported apples and could 
cause economic harm.
    Some commenters stated that the proposed rule did not contain 
quantifiable data that demonstrated non-compliance with the existing 
requirements, observing that shipments appear to have been properly 
inspected and certified for years without the proposed additional 
monitoring to ensure compliance with these requirements. One commenter 
questioned using a special USDA-defined code in AES for exempt bulk 
shipments of apples to Canada because it appears to be a temporary 
workaround that would be used only until a new harmonized tariff code 
could be developed to identify these exempt shipments; the commenter 
suggested delaying the change until a permanent solution was developed 
in light of the non-urgent nature of the change. Some commenters also 
raised issues about the

[[Page 46426]]

entry of information in AES, such as whether shipments bound for Canada 
require such entry and that it is a shipper's agent or freight 
forwarder--not a shipper--who enters data into AES. One commenter also 
recommended that the proposed ``shipper'' definition be more 
descriptive to provide further clarity in the regulations.
    Given the opposing comments received, AMS has determined that the 
proposed rule changing the reporting requirements under the Export 
Fruit Acts should not be finalized. AMS intends to conduct outreach 
with export industry stakeholders and consider other compliance 
monitoring activities as it reconsiders whether changes will be 
proposed in the future. Accordingly, the proposed rule to change the 
reporting of export certificate information under regulations issued 
pursuant to the Export Fruit Acts published in the Federal Register on 
December 5, 2016, (81 FR 87486) is hereby withdrawn.

List of Subjects in 7 CFR Part 33

    Apples, Exports, Pears, Reporting and recordkeeping requirements.

    Authority: 48 Stat. 124; 7 U.S.C. 581-590.

List of Subjects in 7 CFR Part 35

    Administrative practice and procedure, Exports, Grapes, Plums, 
Reporting and recordkeeping requirements.

    Authority: 74 Stat. 734; 75 Stat. 220; 7 U.S.C. 591-599.

     Dated: September 28, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-21183 Filed 10-4-17; 8:45 am]
BILLING CODE 3410-02-P