[Federal Register Volume 83, Number 20 (Tuesday, January 30, 2018)]
[Rules and Regulations]
[Pages 4131-4136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01737]



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 Rules and Regulations
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  Federal Register / Vol. 83, No. 20 / Tuesday, January 30, 2018 / 
Rules and Regulations  

[[Page 4131]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 319

[Docket No. APHIS-2016-0005]
RIN 0579-AE28


Importation of Orchids in Growing Media From Taiwan

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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

SUMMARY: We are amending the regulations governing the importation of 
plants for planting to add orchid plants of the genus Dendrobium from 
Taiwan to the list of plants that may be imported into the United 
States in an approved growing medium, subject to specified growing, 
inspection, and certification requirements. We are taking this action 
in response to a request from the Taiwanese Government and after 
determining that the plants could be imported, under certain 
conditions, without resulting in the introduction into, or the 
dissemination within, the United States of a quarantine plant pest or 
noxious weed.

DATES: Effective March 1, 2018.

FOR FURTHER INFORMATION CONTACT: Ms. Lydia E. Col[oacute]n, Senior 
Regulatory Policy Specialist, Plants for Planting Policy, PPQ, APHIS, 
4700 River Road Unit 133, Riverdale, MD 20737; (301) 851-2302.

SUPPLEMENTARY INFORMATION: 

Background

    The regulations in 7 CFR part 319 prohibit or restrict the 
importation into the United States of certain plants and plant products 
to prevent the introduction of plant pests and noxious weeds. The 
regulations in ``Subpart--Plants for Planting,'' Sec. Sec.  319.37 
through 319.37-14 (referred to below as the regulations) contain, among 
other things, prohibitions and restrictions on the importation of 
plants, plant parts, and seeds for propagation.
    Paragraph (a) of Sec.  319.37-8 of the regulations requires, with 
certain exceptions, that plants offered for importation into the United 
States be free of sand, soil, earth, and other growing media. This 
requirement is intended to help prevent the introduction of plant pests 
that might be present in the growing media; the exceptions to the 
requirement take into account factors that mitigate plant pest risks. 
Those exceptions, which are found in paragraphs (b) through (e) of 
Sec.  319.37-8, consider either the origin of the plants and growing 
media (paragraph (b)), the nature of the growing media (paragraphs (c) 
and (d)), or the use of a combination of growing conditions, approved 
media, inspections, and other requirements (paragraph (e)).
    Paragraph (e) of Sec.  319.37-8 provides conditions under which 
certain plants established in growing media may be imported into the 
United States. In addition to specifying the types of plants that may 
be imported, Sec.  319.37-8(e) also:
     Specifies the types of growing media that may be used;
     Requires plants to be grown in accordance with written 
agreements between the Animal and Plant Health Inspection Service 
(APHIS) and the national plant protection organization (NPPO) of the 
country where the plants are grown and between the foreign NPPO and the 
grower;
     Requires the plants to be rooted and grown for a specified 
period in a greenhouse that meets certain requirements for pest 
exclusion and that is used only for plants being grown in compliance 
with Sec.  319.37-8(e);
     Requires that the parent plants of the exported plants in 
growing media are produced from seed germinated in the production 
greenhouse or from mother plants that are grown and monitored for a 
specified period prior to export of the descendant plants;
     Specifies the sources of water that may be used on the 
plants, the height of the benches on which the plants must be grown, 
and the conditions under which the plants must be stored and packaged; 
and
     Requires that the plants be inspected in the greenhouse 
and found free of evidence of plant pests no more than 30 days prior to 
the exportation of the plants.
    A phytosanitary certificate issued by the NPPO of the country in 
which the plants were grown that declares that the above conditions 
have been met must accompany the plants at the time of importation. 
These conditions have been used to successfully mitigate the risk of 
pest introduction associated with the importation into the United 
States of approved plants established in growing media.
    In response to a request from the NPPO of Taiwan, we prepared a 
pest risk assessment (PRA) in order to identify the quarantine plant 
pests that could follow the importation of orchid plants of the genus 
Dendrobium in approved growing media from Taiwan into the United 
States. (Under Sec.  319.37-1 of the regulations, a quarantine plant 
pest is a plant pest that is of potential economic importance to the 
United States and not yet present in the United States, or present but 
not widely distributed and being officially controlled.)
    Based on the findings of the PRA, we prepared a risk management 
document (RMD) to determine whether phytosanitary measures exist that 
would address this quarantine plant pest risk. The RMD suggested that 
the risk would be addressed if the plants met the general conditions of 
Sec.  319.37-8(e).
    As a result, on October 27, 2016, we published in the Federal 
Register (81 FR 74720-74722, Docket No. APHIS-2016-0005) a proposal \1\ 
to amend the regulations by adding Dendrobium spp. from Taiwan to the 
list of plants established in an approved growing medium that may be 
imported into the United States. The plants will have to be produced, 
handled, and imported in accordance with the requirements of Sec.  
319.37-8(e) and be accompanied at the time of importation by a 
phytosanitary certificate issued by the NPPO of Taiwan that declares 
that those requirements have been met.
---------------------------------------------------------------------------

    \1\ To view the proposed rule, supporting documents, and the 
comments we received, go to http://www.regulations.gov/#!docketDetail;D=APHIS-2016-0005.
---------------------------------------------------------------------------

    We solicited comments concerning our proposal for 60 days ending 
December 27, 2016. We received 11 comments by that date. They were from 
a scientific group, industry

[[Page 4132]]

organizations, a State department of agriculture, and private citizens. 
They are discussed below by topic.

General Comments

    One commenter was supportive of the proposed action but requested 
that we also allow for the importation of carnivorous plants from 
Taiwan as they are grown in the same medium.
    The request submitted by the NPPO of Taiwan concerned the 
importation of Dendrobium spp. orchids only. Were Taiwan to submit a 
request to import carnivorous plants in approved growing media we would 
consider and analyze that request as we would any other.
    Another commenter, from the Florida Department of Agriculture and 
Consumer Services, Division of Plant Industry (FDACS' DPI), stated that 
U.S. stakeholders from those areas potentially affected by any pest or 
disease outbreak from imported commodities should be invited to 
participate in site visits prior to the proposal of any rulemakings 
such as the one finalized by this document.
    APHIS is committed to a transparent process and an inclusive role 
for stakeholders in our risk analysis process. To that end, we are 
currently considering ways to facilitate further stakeholder 
involvement, including site visits, during the initial stages of the 
development of PRAs. However, since this comment relates to the 
structure of APHIS' overall risk analysis process, and not to the 
importation of Dendrobium spp. orchids from Taiwan, it is outside the 
scope of the current rulemaking.
    A commenter requested that we take into consideration the increased 
workload of border inspectors and the potential impact of additional 
imports on inspection times and treatment facilities.
    APHIS has reviewed its resources and consulted with U.S. Customs 
and Border Protection and believes there is adequate coverage across 
the United States to ensure compliance with APHIS regulations, 
including the importation of Dendrobium spp. orchids in approved 
growing media, as established by this rule.
    One commenter wanted to know how the importation of Dendrobium spp. 
orchids in approved growing media would benefit domestic orchid growers 
and consumers. The commenter speculated that the imported Dendrobium 
spp. orchids would be of lower quality compared to the domestic 
flowers. The commenter wanted to know whether APHIS was planning to 
implement any programs to assist domestic orchid growers in the face of 
foreign competition.
    It is beyond APHIS' statutory authority to prohibit importation of 
a commodity for any reason other than to prevent the introduction or 
dissemination of a plant pest or noxious weed within the United States. 
Under the Plant Protection Act (PPA), APHIS may prohibit the 
importation of a fruit or vegetable into the United States only if we 
determine that the prohibition is necessary in order to prevent the 
introduction or dissemination of a plant pest or noxious weed within 
the United States.

Comments on Phytosanitary Risk

    A commenter said that APHIS should further study the potential 
phytosanitary impacts and set out additional requirements prior to 
allowing for the importation of Dendrobium spp. orchids from Taiwan.
    The PRA and RMD that accompanied the proposed rule evaluated the 
quarantine plant pest risk associated with the importation of 
Dendrobium spp. orchids in approved growing media from Taiwan into the 
United States. These documents provided scientific evidence that a 
prohibition on the importation of Dendrobium spp. orchids in approved 
growing media is not necessary in order to protect plant health in the 
United States, and the risk associated with such importation could be 
addressed by requiring the orchids and growing media to be produced in 
accordance with Sec.  [thinsp]319.37-8(e). We prepared the PRA and RMD 
in accordance with relevant International Plant Protection Convention 
(IPPC) standards (see International Standards for Phytosanitary 
Measures (ISPM) No. 11, found at http://www.acfs.go.th/sps/downloads/34163_ISPM_11_E.pdf) and our own guidelines, and we are confident that 
they adequately evaluated the plant pest risk associated with the 
importation of Dendrobium spp. orchids in approved growing media from 
Taiwan into the United States.
    Another commenter expressed concern that the NPPO of Taiwan or its 
designated representatives would not perform required inspections to a 
sufficiently high standard and therefore allow pests of concern to 
enter the United States.
    The United States is a member of the World Trade Organization 
(WTO), and a signatory to the WTO's Agreement on Sanitary and 
Phytosanitary Measures (SPS Agreement) and the IPPC. In these 
capacities, the United States has agreed that any prohibitions it 
places on the importation of plants for planting will be based on 
scientific evidence, and will not be maintained without sufficient 
scientific evidence indicating that the prohibitions are necessary to 
protect plants within the United States. Like the United States, Taiwan 
is a signatory to the SPS Agreement. As such, it has agreed to respect 
the phytosanitary measures the United States imposes on the importation 
of plants and plant products from Taiwan when the United States 
demonstrates the need to impose these measures in order to protect 
plant health within the United States. Were pests of concern to be 
discovered in shipments of Dendrobium spp. orchids in approved growing 
media from Taiwan, we reserve the right to halt importation and address 
the issue with the NPPO of Taiwan.
    Two commenters cited reports of unknown pests discovered in 
connection with orchids from Taiwan: microscopic mites in the flower 
pollen and sphagnum moss-eating insects in the growing media. These 
reports suggested to the commenters that the PRA and RMD prepared by 
APHIS might not be reliable.
    After careful review of our pest interception data, we found that 
only 48 actionable pests were intercepted in connection with all 
species of orchids imported from Taiwan over the last 5 years, which is 
less than 10 interceptions per year. The pests intercepted specifically 
in connection with shipments of Dendrobium spp. orchids in the past 5 
years were: Snails (three interceptions), mealybugs (one interception), 
thrips (two interceptions), and fungal plant pathogens (five 
interceptions). All orchid shipments containing actionable pests were 
fumigated, destroyed, or returned to Taiwan to ensure that no pests 
were able to enter the United States.
    There have been no interceptions of mites on Dendrobium spp. 
orchids from Taiwan, nor have there been any interceptions of organisms 
in sphagnum moss. The approved growing media, including sphagnum moss, 
listed in paragraph (e)(1) of Sec.  319.37-8 must be new and not have 
been previously used. Prior evaluation by APHIS has revealed that 
approved growing media not previously used for planting is unlikely to 
be colonized by quarantine pests. All growing media must be sourced, 
processed, packaged, handled and stored in a manner to ensure freedom 
from pests.
    Another commenter argued that the potential for the presence of 
quarantine pests associated with approved growing media or plants is 
always present. The commenter said that these pests or evidence of 
their presence may not be

[[Page 4133]]

visible upon inspection or may be missed during the inspection process.
    If the provisions of the proposed rule are adhered to, there will 
be a negligible risk that Dendrobium spp. orchids in approved growing 
media from Taiwan that are imported into the United States will harbor 
quarantine plant pests.
    That being said, pursuant to Sec. Sec.  [thinsp]319.37-3 and 
319.37-11 of the regulations, lots of Dendrobium spp. orchids in 
approved growing media from Taiwan that consist of 13 or more plants 
must be imported to a United States Department of Agriculture plant 
inspection station for entry into the United States--we anticipate that 
almost all lots of Dendrobium spp. orchids in approved growing media 
from Taiwan that are exported to the United States will consist of more 
than 13 plants. Personnel at plant inspection stations are trained to 
detect plant pests and signs and symptoms of plant pests, including 
those that are difficult to detect, and have access to personnel with 
scientific expertise in identifying plant pests.
    One commenter cited a previous rule (81 FR 5881-5888, Docket No. 
APHIS-2014-0041) that authorized the importation of Oncidium spp. 
orchids from Taiwan in approved growing media where we provided 
interception data related to the importation of Phalaenopsis spp. 
orchids in approved growing media from Taiwan. The commenter disagreed 
with our assertion that the average interception rate for pests of 
concern in connection with shipments of Phalaenopsis spp. orchids in 
approved growing media from Taiwan (23 consignments determined infested 
per year) is statistically insignificant.
    We disagree and reiterate that an average of 23 infested shipments 
out of the approximately 20 million Phalaenopsis spp. orchids in 
approved growing media exported from Taiwan to the United States each 
year is a vanishingly small number that serves as proof of the efficacy 
of the systems approach. There is no evidence that any plant pests have 
been introduced into the United States through the importation of 
Phalaenopsis spp. orchids in growing media from Taiwan. The commenter 
provided no evidence to support the claim of statistical significance.
    Another commenter referenced a 2012 study released by the European 
and Mediterranean Plant Protection Organization (EPPO) titled ``EPPO 
Study on the Risk of Imports of Plants for Planting.'' \2\ The 
commenter highlighted several findings of that study which were 
determined by EPPO to represent high risk of plant pest introduction:
---------------------------------------------------------------------------

    \2\ The EPPO study is located at https://www.eppo.int/QUARANTINE/EPPO_Study_on_Plants_for_planting.pdf.
---------------------------------------------------------------------------

     Presence of growing medium, which could lead to the 
transport of many types of pests, including nematodes, fungi, insects, 
and invasive plants. The commenter cited the orchid snail (Zonitoides 
arboreus) in the State of Hawaii as an example, where the growth of the 
commercial potted orchid industry and that industry's use of moist bark 
and coconut fiber media were connected to a dramatic increase in snail 
damage and prevalence in the 1990s;
     Size of the plants. The commenter's assumption was that 
plants in growing medium would be larger than the bare root plants 
previously allowed importation. Larger plants are older and allow more 
time for pest infestation to occur and more places on the plant to 
infest;
     Production mode. Wild-collected plants are highest risk 
and easily disguised among cultivated plants when potted in identical 
containers and media;
     Unidentified risk. Those quarantine pests considered by 
the study were not known to represent a phytosanitary risk prior to 
their introduction, and their features would not have suggested a risk 
if assessed individually. The commenter cited the fungus Ceratocystis 
fimbriata, the causal agent of rapid Ohi'a death, which was previously 
unknown to science and was not on any list of quarantine pests, but is 
most similar to a disease shipped in potted plants.
    The PRA contained an evaluation of the likelihood that quarantine 
snails, slugs, and nematodes that occur in Taiwan and are associated 
with Dendrobium spp. orchids will follow the pathway on Dendrobium spp. 
orchids in approved growing media to the United States. If the snails, 
slugs, or nematodes were considered to potentially follow the pathway, 
the PRA evaluated the likelihood of their introduction into the United 
States through this pathway, and the consequences of this introduction. 
Bark is not listed in Sec.  319.37-8 as an approved growing medium and, 
while coconut fiber is among the approved growing media, as stated 
previously, all growing media must be new and not have been previously 
used, thus decreasing the risk that it will be infested.
    Contrary to the commenter's assumption that plants imported in 
growing media would be older and therefore larger than the bare root 
plants already allowed importation, plants in growing media are subject 
to the same size and age restrictions as bare root plants. In addition, 
as mentioned earlier in this document, lots of 13 or more Dendrobium 
spp. orchids in approved growing media from Taiwan would have to be 
imported to a plant inspection station for entry into the United States 
where they will be carefully examined by trained inspectors.
    Plants in growing media pose no greater risk of commingling with 
wild-collected plants than other types of plant material; indeed the 
more numerous inspections required of plants in growing media during 
the production process likely makes such commingling more difficult. 
However, if we determine that the standard of production agreed upon by 
APHIS and the NPPO of Taiwan is not being met (e.g., commingling wild-
collected plants with greenhouse grown plants), we reserve the right to 
halt importations of Dendrobium spp. orchids in approved growing media 
from Taiwan until such time that we are confident that the required 
systems approach will be followed.
    C. fimbriata was originally described in connection with sweet 
potato in 1890. It has since been found on a wide variety of annual and 
perennial plants. It is not yet known whether the C. fimbriata causing 
rapid Ohi'a death in Hawaii represents a new strain imported on an as-
yet unknown commodity or an existing strain that mutated in Hawaii. The 
PRA that accompanied the proposed rule provided a list of all pests of 
Dendrobium spp. orchids in approved growing media from Taiwan. This 
list was prepared using multiple data sources to ensure its 
completeness. For this same reason, we are confident it is accurate. 
If, however, a new pest is detected in connection with Dendrobium spp. 
orchids in approved growing media from Taiwan (e.g., the causal agent 
for rapid Ohi'a death is conclusively linked to that commodity), APHIS 
will conduct further risk analysis in order to evaluate that pest to 
determine whether it is a quarantine pest, and whether it is likely to 
follow the importation pathway. If we determine that the pest is a 
quarantine pest and is likely to follow the pathway, we will work with 
the NPPO of Taiwan to adjust the pest list and related phytosanitary 
measures to prevent its introduction into the United States.
    Another commenter expressed concern that APHIS would not have

[[Page 4134]]

sufficient inspectors at the ports of entry into the United States, 
allowing for pest entry.
    APHIS has reviewed its resources and believes it has adequate 
resources available to ensure compliance with the conditions of the 
final rule.
    One commenter stated that there is no virus testing at U.S. ports 
of entry and wanted to know if such testing occurs prior to export.
    We do not consider virus testing necessary given that the PRA did 
not identify any quarantine viruses that occur in Taiwan and are 
associated with Dendrobium spp. orchids. If that situation were to 
change we would work with the NPPO of Taiwan to develop requirements 
relating to viral testing for any quarantine viruses.

Comments Regarding the Pest List

    As part of the PRA, we prepared a list of plant pests that are 
associated with Dendrobium spp. orchids and that we determined to occur 
in Taiwan. We determined that three quarantine pests present in Taiwan 
could potentially follow the import pathway:
     Helionothrips errans (Williams), a thrips;
     Scirtothrips dorsalis Hood, the chili thrips; and
     Spodoptera litura (Fabricius), the Oriental leafworm moth.
    FDACS' DPI stated that an accidental introduction of the Oriental 
leafworm moth would be particularly damaging to the State of Florida 
because it is a known pest of some of that State's most significant 
crops. The commenter said that Oriental leafworm moth is intercepted in 
connection with orchids at ports of entry on a regular basis and has 
been discovered at least five times in Florida nurseries since 2002; 
some of these finds were associated with Dendrobium spp.
    The required systems approach will remove pests from pathway of 
importation of Dendrobium spp. orchids from Taiwan. Oriental leafworm 
moth eggs and larvae (the life stages of the pest associated with 
Dendrobium spp. orchids from Taiwan) are conspicuous pests that are 
relatively easy to detect upon visual inspection. Plants in growing 
media will be produced in pest exclusionary structures subject to 
required pest management programs. While it is true that Oriental 
leafworm moth has been intercepted at the ports, these interceptions 
have not been made in connection with orchids imported from China or 
Taiwan. Those Oriental leafworm moths associated with Dendrobium spp. 
orchids discovered in Florida greenhouses were likely associated with 
plants smuggled into the United States and not grown using the 
necessary containment methods to prevent infestation.
    Another commenter said that because Helionothrips errans and the 
chili thrips are very small and insert their eggs into plant material, 
evidence of infestation may go undetected.
    In addition to the pest exclusionary structures discussed 
previously, the post-harvest requirement that the plants be kept dry 
for 7-10 days prior to packing in approved growing media will allow for 
the emergence of any thrips previously undetected due to their location 
inside the plant.
    One commenter pointed out that Fusarium (a genus of pathogenic 
fungi) exists in Taiwan and can be persistent in plant populations 
there since full control measures require the elimination of all 
contaminated plants and the implementation of strict disease control 
measures.
    While we are aware that multiple species of Fusarium occur in 
Taiwan, none of these are known to be associated with Dendrobium spp. 
orchids. Further, when we have detected Fusarium spp. on susceptible 
commodities at ports of entry into the United States, the species 
detected have been ones that are already widely prevalent within the 
United States and therefore not considered to be quarantine pests.

Comments Regarding Additional Phytosanitary Measures

    Two commenters pointed out that APHIS data shows that the systems 
approach does miss quarantine pests and argued that this was proof that 
further study and implementation of additional phytosanitary measures 
are needed before additional importation is allowed.
    We have stated in the past that if zero tolerance for pest risk 
were the standard applied to international trade in agricultural 
commodities, it is quite likely that no country would ever be able to 
export a fresh agricultural commodity to any other country and, thus, 
zero risk is not a realistic standard. We are confident, based on our 
knowledge and experience, that the required phytosanitary measures laid 
out in this rule and in the preceding proposed rule will be sufficient 
to reduce risk.
    One commenter stated that because the required screens can be 
easily removed from greenhouse ventilators and reinstalled prior to the 
arrival of inspectors, we should implement a required monitoring system 
so that the screening cannot be removed between inspections.
    We reserve the right to conduct monitoring of the development and 
implementation of the required pest management plans. However, we do 
not consider it necessary for us to require APHIS to monitor the 
development and implementation of each pest management plan within any 
specific place of production. For other export programs for plants and 
plant products from Taiwan to the United States, we have exercised 
joint monitoring responsibilities with the NPPO of Taiwan, and we have 
not encountered any issues that suggest we should modify this practice.
    Another commenter said that a large percentage of plants imported 
into the State of Florida from China and Taiwan test positive for 
common orchid viruses. The commenter claimed that this is due to the 
use of large plant pieces for multiplication since, when this is done, 
any pathogens present on the original plant will also be present on 
those plants propagated from that plant's parts. The commenter argued 
that many pathogens, such as viruses, bacteria, and Liberibacters 
including zebra chip, citrus greening, and Xylella fastidiosa, may be 
present on plants but remain asymptomatic, thus escaping detection via 
visual inspection. As a result, the commenter recommended the following 
additional phytosanitary measures: The growing area should exclude all 
pests capable of vectoring pathogens and be inspected on a quarterly 
basis to ensure freedom from such pests; and a percentage of plants 
should be randomly indexed for pathogens at least biannually.
    The PRA did not identify any viruses that can follow the pathway of 
importation of Dendrobium spp. orchids from Taiwan. In addition, the 
pathogens specifically referenced by the commenter are not orchid 
pests: Zebra chip is a pest of potatoes, citrus greening is a pest of 
citrus, and Xylella fastidiosa is the causal agent for diseases of 
olives, citrus, grapes, and landscape oleanders. Nonetheless, growers 
will be required to perform specific sanitary measures under the 
requirements of the rule and the operational workplan that APHIS enters 
into with the NPPO of Taiwan. The required greenhouse operating 
procedures will include measures designed to exclude pests from the 
greenhouse and implementation of a pest management plan to control 
disease vectors.
    FDACS' DPI recommended that shipment of Dendrobium spp. orchids 
from Taiwan not be allowed into the State of Florida given that the 
climate in that State is particularly conducive to

[[Page 4135]]

the establishment of the pests associated with Dendrobium spp. orchids.
    We have determined, for the reasons described in the RMD that 
accompanied the proposed rule, that the measures specified in the RMD 
will effectively mitigate the risk associated with the importation of 
Dendrobium spp. orchids from Taiwan. The commenter did not provide any 
evidence suggesting that the mitigations are not effective. Therefore, 
we are not taking the action requested by the commenter.

Comments Regarding Economic Impact

    One commenter stated that the increase of foreign-produced orchids 
in the domestic market will force most domestic orchid farmers out of 
business. A second commenter expressed the belief that this scenario 
would be driven by lower production costs, due mainly to lower labor 
rates in Taiwan and a climate more favorable to orchid production 
absent the need for artificial heating and cooling.
    The importation Dendrobium spp. orchids into the United States from 
Taiwan is already allowed; it is only their importation in approved 
growing media that is not currently authorized. Taiwan may shift some 
exports from bare-rooted Dendrobium spp. orchids to rooted plants in 
approved growing media to meet U.S. consumer demand. We note that, by 
value, U.S. production of Dendrobium spp. orchids does not represent a 
large portion of U.S. orchid production (4 percent of production in 
2014). While orchid producers in Taiwan may benefit from lower labor 
costs, the quantity of Dendrobium spp. plants in approved growing media 
exported to the United States will still depend on the ability of those 
producers and exporters to cover their production, transportation, and 
marketing costs in light of U.S. market prices. APHIS expects Taiwan 
orchid producers to incur higher production and shipping costs as 
compared to those for bare-rooted plants.
    A commenter classified the proposed action as a lessening of 
regulatory requirements and predicted that it would prove detrimental 
to the domestic orchid industry by setting a precedent for less 
stringent regulations.
    The Secretary considers many factors in making a determination to 
allow the import of a previously prohibited article, such as potential 
environmental effects and the economic effects associated with the 
introduction of a plant pest or noxious weed. The determination to 
allow an import under the PPA, however, is ultimately based on the 
Secretary's determination that the importation of a commodity will not 
result in the introduction into or dissemination within the United 
States of a plant pest or noxious weed. This approach is consistent 
with APHIS' obligations under the PPA and international trade 
agreements. Part of APHIS' mission is to facilitate exports, and we 
strive to do so. Success in this area is somewhat tied to factors out 
of our control, but we make every effort to assist domestic industry in 
securing access to export markets.
    The same commenter expressed the belief that the Taiwanese orchid 
industry is given financial assistance by the government of that 
country that gives those growers an advantage over domestic producers 
who are not similarly assisted by the U.S. Government.
    APHIS has no reason to believe that Dendrobium spp. producers or 
shippers are subsidized by Taiwan. However, even if they were, as 
stated elsewhere in this document, APHIS' determinations as to whether 
a new agricultural commodity can be safely imported are not affected by 
factors such as economic competitiveness.
    Another commenter asked us to consider the future budgetary 
resources required for pest management programs and facilities given 
the likely increase the prevalence of quarantine pests overall.
    APHIS allocates substantial resources for the identification of 
invasive pests, including pest identifiers and taxonomic specialists. 
We also allocate resources to States through the Cooperative 
Agricultural Pest Survey to ensure that the risk of invasive pests 
entering the United States is being sufficiently addressed. As stated 
previously, the required systems approach will allow Dendrobium spp. 
orchids in approved growing media to be safely imported into the United 
States from Taiwan.
    Therefore, for the reasons given in the proposed rule and in this 
document, we are adopting the proposed rule as a final rule, without 
change.

Executive Order 13771

    This rule is not an Executive Order 13771 regulatory action because 
this rule is not significant under Executive Order 12866. Further, 
APHIS considers this rule to be a deregulatory action under Executive 
Order 13771 as the action will enable U.S. nurseries that purchase 
these orchids to benefit from their improved quality and reduced 
production time in comparison to bare-rooted plants.

Executive Order 12866 and Regulatory Flexibility Act

    This final 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.
    In accordance with the Regulatory Flexibility Act, we have analyzed 
the potential economic effects of this action on small entities. The 
analysis is summarized below. Copies of the full analysis are available 
on the Regulations.gov website (see footnote 1 in this document for a 
link to Regulations.gov) or by contacting the person listed under FOR 
FURTHER INFORMATION CONTACT.
    Although the importation from Taiwan of bare-rooted Dendrobium spp. 
orchids is allowed, entry of this orchid genus in growing media is not 
authorized. In response to requests from the Taiwan Ministry of 
Agriculture and Forestry, APHIS is amending the regulations to allow 
the importation of Dendrobium spp. orchids in approved growing media 
into the United States, subject to specified growing, inspection, and 
certification requirements.
    Orchids are the largest single group of potted flowering plants 
sold in the United States, and comprised about one-third of sales ($266 
million of $788 million) for the potted flowering plants industry in 
2014 (most recent data available). Sales of U.S.-produced Dendrobium 
spp. orchids in 2014 totaled $12.3 million. In 2016, the United States 
imported 5,948 metric tons (MT) of live orchids valued at $75 million, 
of which Taiwan supplied 79 percent (orchids valued at over $58.9 
million).
    The rule will enable Taiwanese exporters to bypass U.S. growers 
altogether and provide higher-valued, mature potted Dendrobium spp. 
orchids directly to wholesalers and retailers. However, such a scenario 
is considered unlikely, given the technical challenges and marketing 
costs incurred when shipping finished plants in pots. More likely, 
Taiwan will continue to export immature plants to U.S. nurseries to 
grow and sell as finished plants.
    Import levels will depend on the ability of Taiwanese producers and 
exporters to cover their production, transportation, and marketing 
costs given U.S. market prices. U.S. nurseries that purchase Dendrobium 
spp. orchids will benefit from their improved quality and reduced 
production time in comparison to bare-rooted plants. The rule will 
increase competition for U.S. producers and importers of immature 
Dendrobium spp. orchids.

[[Page 4136]]

    U.S. orchid producers numbered 158 in 2012, but the number of 
establishments that are small entities is not known. Given that orchid 
plants such as Oncidium spp. are already being imported from Taiwan in 
approved growing media and all orchid species are allowed importation 
without growing material, we expect that allowing the importation of 
Dendrobium spp. orchids in approved growing media will not 
significantly change the volume or value of orchids imported by the 
United States from Taiwan.
    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 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.

National Environmental Policy Act

    An environmental assessment and finding of no significant impact 
have been prepared for this final rule. The environmental assessment 
provides a basis for the conclusion that the importation of Dendrobium 
spp. from Taiwan under the conditions specified in this rule will not 
have a significant impact on the quality of the human environment. 
Based on the finding of no significant impact, the Administrator of the 
Animal and Plant Health Inspection Service has determined that an 
environmental impact statement need not be prepared.
    The environmental assessment and finding of no significant impact 
were prepared in accordance with: (1) The National Environmental Policy 
Act of 1969 (NEPA), as amended (42 U.S.C. 4321 et seq.), (2) 
regulations of the Council on Environmental Quality for implementing 
the procedural provisions of NEPA (40 CFR parts 1500-1508), (3) USDA 
regulations implementing NEPA (7 CFR part 1b), and (4) APHIS' NEPA 
Implementing Procedures (7 CFR part 372).
    The environmental assessment and finding of no significant impact 
may be viewed on the Regulations.gov website.\3\ Copies of the 
environmental assessment and finding of no significant impact are also 
available for public inspection at USDA, Room 1141, South Building, 
14th Street and Independence Avenue SW, Washington, DC, between 8 a.m. 
and 4:30 p.m., Monday through Friday, except holidays. Persons wishing 
to inspect copies are requested to call ahead on (202) 799-7039 to 
facilitate entry into the reading room. In addition, copies may be 
obtained by writing to the individual listed under FOR FURTHER 
INFORMATION CONTACT.
---------------------------------------------------------------------------

    \3\ Go to http://www.regulations.gov/#!docketDetail;D=APHIS-
2016-0005. The environmental assessment and finding of no 
significant impact will appear in the resulting list of documents.
---------------------------------------------------------------------------

Paperwork Reduction Act

    In accordance with section 3507(d) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the information collection 
requirements included in this final rule, which were filed under 0579-
0458, have been submitted for approval to the Office of Management and 
Budget (OMB). When OMB notifies us of its decision, if approval is 
denied, we will publish a document in the Federal Register providing 
notice of what action we plan to take.

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 Ms. Kimberly Hardy, 
APHIS' Information Collection Coordinator, at (301) 851-2483.

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.

    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 319.37-8 is amended as follows:
0
a. In paragraph (e) introductory text, by adding, in alphabetical 
order, an entry for ``Dendrobium spp. from Taiwan''; and
0
b. By revising the OMB citation at the end of the section.
    The revision reads as follows:


Sec.  319.37-8  Growing media.

* * * * *

(Approved by the Office of Management and Budget under control 
numbers 0579-0190, 0579-0439, 0579-0454, and 0579-0458)
    Done in Washington, DC, this 24th day of January 2018.
Kevin Shea,
Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 2018-01737 Filed 1-29-18; 8:45 am]
 BILLING CODE 3410-34-P