[Federal Register Volume 83, Number 67 (Friday, April 6, 2018)]
[Proposed Rules]
[Pages 14771-14781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06968]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1206

[Document No. AMS-SC-17-0002]


Mango Promotion, Research and Information Order; Amendment To 
Include Frozen Mangos

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on amending the 
Agricultural Marketing Service's (AMS) regulations regarding a fresh 
mango national research and promotion program to include frozen mangos 
as a covered commodity. Additionally, this proposal announces AMS' 
intent to request approval by the Office of Management and Budget (OMB) 
of new information collection requirements necessary to include frozen 
mangos under the program.

DATES: Comments must be received by June 5, 2018. Pursuant to the 
Paperwork Reduction Act, comments on the information collection burden 
that would result from this proposal must be received by June 5, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments may be submitted on the internet at: 
http://www.regulations.gov. Comments may also be sent to the Promotion 
and Economics Division, Specialty Crops Program, AMS, USDA, Room 1406-
S, Stop 0244, 1400 Independence Avenue SW, Washington, DC 20250-0244; 
facsimile: (202) 205-2800. All comments submitted should reference the 
document number and page number of this issue of the Federal Register 
and will be made available for public inspection, including name and 
address,

[[Page 14772]]

if provided, in the above office during regular business hours or it 
can be viewed at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Jeanette Palmer, Marketing Specialist, 
Promotion and Economics Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, Room 1406-S, Stop 0244, Washington, DC 
20250-0244; telephone: (202) 720-9915; facsimile: (202) 205-2800; 
email: [email protected].

SUPPLEMENTARY INFORMATION: This proposal affecting 7 CFR part 1206 is 
authorized under the Commodity Promotion, Research, and Information Act 
of 1996 (1996 Act) (7 U.S.C. 7411-7425).

Executive Orders 12866, 13563, and 13771

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules and promoting flexibility. 
This action falls within a category of regulatory actions that the OMB 
exempted from Executive Order 12866 review. 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).

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. The review reveals that this regulation would not 
have substantial and direct effects on Tribal governments and would not 
have significant Tribal implications.

Executive Order 12988

    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have a retroactive effect. 
Section 524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not 
affect or preempt any other Federal or State law authorizing promotion 
or research relating to an agricultural commodity.
    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject 
to an order may file a written petition with USDA stating that an 
order, any provision of an order, or any obligation imposed in 
connection with an order, is not established in accordance with the 
law, and request a modification of an order or an exemption from an 
order. Any petition filed challenging an order, any provision of an 
order, or any obligation imposed in connection with an order, shall be 
filed within two years after the effective date of an order, provision, 
or obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, USDA 
will issue a ruling on the petition. The Act provides that the district 
court of the United States for any district in which the petitioner 
resides or conducts business shall have the jurisdiction to review a 
final ruling on the petition, if the petitioner files a complaint for 
that purpose not later than 20 days after the date of the entry of 
USDA's final ruling.

Background

    This proposal invites comments on amending AMS' regulations 
regarding a fresh mango national research and promotion program to 
include frozen mangos as a covered commodity. The program is 
administered by the Board with oversight by USDA. This proposal would 
add definitions to the regulations for frozen mangos and foreign 
processor of frozen mangos; expand the Board's membership from 18 to 21 
by adding two importers of frozen mangos and one foreign processor of 
frozen mangos; assess frozen mangos at a rate of $0.01 per pound; 
exempt from assessment importers who import less than 200,000 pounds of 
frozen mangos annually; and make clarifying and conforming changes to 
other provisions of the program. This action was recommended by the 
Board in November 2016 and would allow frozen mango stakeholders to 
participate in a coordinated effort to maintain and expand the market 
for frozen mangos. This proposal would also update the definition for 
the term ``Board'' to reflect current practices. Additionally, this 
proposal announces AMS' intent to request approval by the OMB of new 
information collection requirements necessary to include frozen mangos 
under the program.

Overview of Current Mango Program

    The fresh mango research and promotion program took effect in 
November 2004 (69 FR 59120) and assessment collection began in January 
2005. Under the current program, assessments are collected from first 
handlers and importers of 500,000 pounds or more of fresh mangos 
annually. Assessments are used by the Board for projects designed to 
maintain and expand existing markets for fresh mangos in the United 
States.
    Table 1 below shows the volume, value and price per pound for fresh 
mango imports into the United States from 2005 through 2016.\1\ Imports 
of fresh mangos have increased from about 575 million pounds in 2005 
(valued at about $169 million) to almost 985 million pounds in 2016 
(valued at $420 million). The price per pound for fresh mango imports 
has increased from $0.29 in 2005 to $0.43 in 2016. In 2016, about 45 
percent of the mangos imported into the United States were from Mexico, 
22 percent were from Ecuador, and 18 percent were from Peru.
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    \1\ https://apps.fas.usda.gov/gats/default.aspx.

                    Table 1--Volume, Value and Price/Pound for Fresh Mango Imports 2005-2016
----------------------------------------------------------------------------------------------------------------
                                                                      Imports
                              Year                                   (pounds)          Value       Price/ pound
                                                                             (A)             (B)             (C)
----------------------------------------------------------------------------------------------------------------
2016............................................................     984,554,112    $420,291,061           $0.43
2015............................................................     861,384,226     401,260,865            0.47
2014............................................................     827,108,732     372,298,536            0.45
2013............................................................     766,477,061     296,953,865            0.39
2012............................................................     706,690,535     248,410,276            0.35
2011............................................................     810,404,105     284,744,341            0.35
2010............................................................     706,690,535     248,410,276            0.35

[[Page 14773]]

 
2009............................................................     633,703,998     217,448,516            0.34
2008............................................................     655,825,602     210,884,833            0.32
2007............................................................     650,918,405     196,062,305            0.30
2006............................................................     644,579,545     209,650,045            0.33
2005............................................................     575,057,320     169,117,171            0.29
----------------------------------------------------------------------------------------------------------------
Column C equals Column B divided by Column A.

    Assessment revenue under the fresh mango program increased from 
$3,293,825 \2\ in 2007 to $7,374,170 \3\ in 2016. In 2016, less than 
one percent of the total assessments were from domestic handlers as the 
vast majority of assessments were collected from importers. The 
assessment rate under the current program for fresh mangos is $0.0075 
per pound, pursuant to Sec.  1206.42(b).
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    \2\ National Mango Promotion Board, Financial Statements Year 
Ending December 31, 2007; Cross, Fernandez & Riley, LLP, Accountants 
and Consultants; April 18, 2008; p. 13.
    \3\ National Mango Promotion Board, Financial Statements and 
Supplementary Information Years Ending December 31, 2016 and 2015; 
BDO USA, LLP; March 15, 2017; p. 17.
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    Since 2008, the Board has invested over $34 million of industry 
funds to help increase mango consumption among U.S. consumers. The 
Board has funded promotional programs with consumers, retailers and 
restaurants within the United States. Retail stores of all sizes are 
promoting mangos all year round, while restaurants all over the country 
are offering their customers more mango dishes. Consumers are learning 
more about mangos from multiple media sources and the demand for mangos 
increased due to the Board's investments in educating consumers about 
the health benefits of eating mangos.
    There have been two economic studies done since the program's 
inception in 2004 that assessed the effectiveness of the Board's 
programs. The studies were conducted by Dr. Ronald Ward at the 
University of Florida and published in 2011 and 2016 and are titled 
``Estimating the Impact of the National Mango Board's Programs on the 
U.S. Demand for Mangos.'' The 2016 study built on the 2011 study and 
found that, for each dollar spent by the Board, approximately 11 to 12 
times that was generated in sales. This return on investment indicates 
the program's success in moving the demand for mangos. The studies are 
available from USDA or the Board.

Frozen Mango Data

    Table 2 below shows the volume, value and price per pound for 
frozen mango imports into the United States from 2005 through 2016.\4\ 
Imports of frozen mangos have increased from almost 32 million pounds 
in 2005 (valued at about $14 million) to almost 118 million pounds in 
2016 (valued at $101 million). The price per pound for frozen mango 
imports has increased from $0.46 in 2005 to $0.86 in 2016. In 2016, 
over half of the imports of frozen mangos into the United States were 
from Mexico, 33 percent were from Peru, and 2 percent were from 
Guatemala.
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    \4\ https://apps.fas.usda.gov/gats/default.aspx.

                    Table 2--Volume, Value and Price/Pound for Frozen Mango Imports 2005-2016
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                                                                      Imports
                              Year                                   (pounds)          Value       Price/ pound
                                                                             (A)             (B)             (C)
----------------------------------------------------------------------------------------------------------------
2016............................................................     117,724,239    $101,204,418           $0.86
2015............................................................     139,492,136     131,155,555            0.94
2014............................................................     116,950,534      82,257,399            0.70
2013............................................................     128,109,849      80,929,782            0.63
2012............................................................      91,630,515      54,466,961            0.59
2011............................................................      88,121,973      49,291,591            0.56
2010............................................................      64,688,410      38,581,629            0.60
2009............................................................      30,178,419      21,619,646            0.72
2008............................................................      51,756,422      32,298,845            0.62
2007............................................................      52,832,786      29,982,510            0.57
2006............................................................      44,351,020      22,447,677            0.51
2005............................................................      31,657,933      14,473,533            0.46
----------------------------------------------------------------------------------------------------------------
Column C equals Column B divided by Column A.

Board Recommendation

    Because of the current program's success for the fresh mango 
market, those who sell frozen mangos have been interested in becoming 
part of the program. Mango producers often sell their mangos for use by 
both the fresh and processed markets. Handlers and importers may 
include all mango product categories in their businesses. However, 
Board promotion efforts only support mangos for the fresh market.
    Thus, the Board recommended amending part 1206 to include frozen 
mangos. This would allow frozen mango stakeholders to participate in a 
coordinated effort to maintain and expand the existing market for 
frozen

[[Page 14774]]

mangos. These efforts would be accomplished through Board activities 
including promotion, research, consumer information, education and 
industry information. By collaborating within the existing national 
mango promotion program, frozen mango stakeholders could provide to 
consumers more information on the various uses and benefits of frozen 
mangos in order to increase demand for the commodity.
    Accordingly, several changes to part 1206 would be necessary to 
expand the program to include frozen mangos. These changes are 
described in the following paragraphs. Authority for the Board to 
recommend changes to part 1206 is provided in Sec.  1206.36(m).

Definitions

Frozen Mangos

    The term ``mangos'' is defined in Sec.  1206.11 to mean all fresh 
fruit of Mangifera indica L. of the family Anacardiaceae. The term 
would be revised to mean the fruit of Mangifera indica L. of the family 
Anacardiaceae and would include both fresh and frozen mangos. Separate 
definitions would be added in new paragraphs (a) and (b) of Sec.  
1206.11 for fresh and frozen mangos, respectively. ``Fresh mangos'' 
would mean mangos in their fresh form. ``Frozen mangos'' would mean 
mangos which are uncooked or cooked by steaming or boiling in water, 
and then frozen, whether or not containing added sugar or other 
sweetening agent.

Foreign Processor of Frozen Mangos

    A definition would be added to part 1206 for ``foreign processor of 
frozen mangos.'' Section 1206.8 which currently defines the term 
``foreign producer'' would be redesignated as Sec.  1206.8a, and a new 
Sec.  1206.8 would define the term ``foreign processor of frozen 
mangos'' or ``foreign processor'' to mean any person: (a) Who is 
engaged in the preparation of frozen mangos for market to the United 
States and/or who owns or shares the ownership and risk of loss of such 
mangos; and (b) who exports frozen mangos to the United States. As 
described later in this document, a foreign processor would also have a 
seat on the Board.
    Additionally, Sec. Sec.  1206.6 and 1206.9 which define the terms 
``first handler'' and ``importer,'' respectively, to mean entities that 
handle or import 500,000 pounds or more of mangos annually would be 
revised to remove the references to volume for the purpose of clarity. 
There are other sections in part 1206 that apply to all first handlers 
and importers regardless of the volume of mangos handled or imported 
(i.e., Sec.  1206.61 regarding books and records and Sec.  1206.62 
regarding confidential treatment thereof). Thus, the definition of the 
terms ``first handler'' and ``importer'' would be revised to mean all 
such entities, regardless of the volume of mangos handled or imported. 
Other sections of part 1206 where the volume handled or imported is 
relevant would specify the applicable figure.

Mango Board

Establishment and Membership

    Section 1206.30(a) regarding establishment and membership of the 
Board specifies that the Board be composed of 18 members--8 importers, 
1 first handler, 2 domestic producers and 7 foreign producers. This 
section would be revised to add three Board seats--two for importers of 
frozen mangos and one for a foreign processor of frozen mangos.
    The Board's rationale for recommending the addition of three seats 
representing the frozen mango industry is based on a review of import 
data. Table 3 below shows fresh and frozen mango import data for 2014-
2016.\5\ Fresh and frozen mango imports account for an average of 88 
and 12 percent, respectively, of the total volume of imports for the 3-
year period.
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    \5\ https://apps.fas.usda.gov/gats/default.aspx.

                            Table 3--Fresh and Frozen Mango Import Volumes 2014-2016
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                                                                  Fresh mango    Frozen mango    Total fresh and
                             Year                                   imports         imports       frozen mango
                                                                   (pounds)        (pounds)     imports (pounds)
----------------------------------------------------------------------------------------------------------------
2016..........................................................     984,554,112     117,724,239     1,102,278,350
2015..........................................................     861,384,226     139,492,136     1,000,876,362
2014..........................................................     827,108,732     116,950,534       944,059,266
3-Year Average................................................     891,015,690     124,722,303     1,015,737,993
Percent of Total..............................................          \1\ 88          \2\ 12  ................
----------------------------------------------------------------------------------------------------------------
\1\ This figure equals the 3-year average of 891,015,690 for fresh mango imports divided by the total mango
  import figure of 1,015,737,993, multiplied by 100.
\2\ This figure equals the 3-year average of 124,722,303 for frozen mango imports divided by the total mango
  import figure of 1,015,737,993, multiplied by 100.

    Imports of fresh mangos account for over 99 percent of the 
assessments under the current program. On the current 18-member Board, 
15 out of the 18 seats (about 83 percent) are for importers and foreign 
producers. If three Board seats are added to represent frozen mango 
imports (two importers and one foreign processor), then 18 of the new 
21-member Board (almost 87 percent) would represent foreign mangos. 
Further, 3 of the 18 foreign-product seats (importers and foreign 
producers) would represent frozen imported mangos (almost 17 percent) 
and the remaining 15 seats (over 83 percent) would represent fresh 
imported mangos. The Board's recommendation regarding frozen mango 
representation on the Board is reasonable and Sec.  1206.30(a) would be 
revised accordingly.
    Additionally, a sentence would be added to Sec.  1206.30(a) to 
specify that first handler Board members must receive 500,000 pounds or 
more of fresh mangos annually from producers, and importer Board 
members must import 500,000 pounds or more of fresh mangos or 200,000 
pounds or more of frozen mangos annually. These requirements are part 
of the current de minimis exemption for the program (see Sec.  1206.43 
Exemptions), added to the Establishment and Membership section in Sec.  
1206.30 for clarification as to who is covered under the program.
    Section 1206.30(b) defines Customs Districts within the United 
States that are used for allocating importer Board seats based on the 
volume of mangos imported into each respective district. This section 
would be revised to state that the two Board seats for importers of

[[Page 14775]]

frozen mangos shall be allocated for importers who import into any of 
the districts (or ``at-large'') defined in paragraphs (1) through (4) 
of Sec.  1206.30(b). The Board recommended that these two seats be at-
large to allow nominees from all four districts. This could encourage 
participation on the Board from this new group regardless of their 
location.

Nominations and Appointments

    Section 1206.31 prescribes procedures for nominating and appointing 
Board members. Board staff solicits nominees for first handler, fresh 
mango importer, and domestic producer member positions and voting is 
conducted by mail ballot. Nominees to fill the foreign producer member 
positions are solicited from foreign producers and from foreign 
producer organizations. From the nominations, the Secretary of 
Agriculture then selects the members of the Board.
    This section would be revised to specify procedures for nominating 
foreign processors and importers of frozen mangos. The procedures would 
be similar to those in place for first handlers and importers of fresh 
mangos. Nominees to fill the foreign processor seat would be solicited 
from foreign mango organizations and from foreign processors. Foreign 
mango organizations would submit two nominees for each position, and 
foreign processors could submit their own name or the names of other 
foreign processors directly to the Board. The nominees would represent 
the major countries exporting frozen mangos to the United States.
    Nominees to fill the two at-large seats on the Board would be 
solicited from all known importers of frozen mangos. The members from 
each district would select the nominees for the two at-large positions 
on the Board. Two nominees would be submitted for each position. The 
names of the nominees would be placed on a ballot that would be sent to 
importers of frozen mangos in each of the four districts for a vote. 
For each position, the nominee receiving the highest number of votes 
and the nominee receiving the second highest number of votes would be 
submitted to USDA as the first and second choice nominees.
    Accordingly, in Sec.  1206.31, paragraph (e) which prescribes 
nomination procedures for fresh mango importers, would be revised to 
clarify that the procedures pertain to fresh mango importers. Further, 
paragraph (h) would be redesignated as paragraph (k), a new paragraph 
(h) would be added to specify procedures for nominating foreign 
processors, and a new paragraph (i) would be added to specify 
procedures for nominating frozen mango importers.
    A new paragraph (j) would be added to Sec.  1206.31 to clarify that 
first handler nominees for a Board position must receive more than 
500,000 pounds of fresh mangos annually from producers, and importers 
must import 500,000 pounds or more of fresh mangos annually or 200,000 
pounds or more of frozen mangos annually.

Term of Office

    Section 1206.32 specifies that Board members serve for a 3-year 
term of office. Members may serve a maximum of two consecutive 3-year 
terms. This section would be revised to include the new positions for 
importers of frozen mangos and foreign processors. Similar to the other 
Board members, the term of office for the new positions would be 3 
years, and no member could serve on the Board for more than two 
consecutive 3-year terms.

Procedure

    Section 1206.34(a) specifies that a quorum for the current 18-
member board consists of 10 members. The proposed rule would increase 
the number of Board seats from 18 to 21, which would necessitate an 
increase in quorum requirements. Therefore, this section would be 
revised to specify that it would be considered a quorum at a Board 
meeting when at least 11 of the 21 Board members were present.

Assessments

    Section 1206.42(b) specifies that the assessment rate is three 
quarters of a cent ($0.0075) per pound on all mangos (fresh). Pursuant 
to paragraph (d) of Sec.  1206.42, import assessments are collected 
through U.S. Customs and Border Protection (Customs). Pursuant to 
paragraph (e) of that section, first handlers must submit their 
assessments to the Board on a monthly basis.
    In its deliberations on the proposed assessment rate for frozen 
mangos, the Board considered the current assessment rate for fresh 
mangos of $0.0075 per pound. Board members took into account that it 
takes 2.5 pounds of fresh mangos to make one pound of frozen mangos.\6\ 
If the fresh equivalent assessment rate were applied to frozen mangos, 
frozen mango importers would pay an assessment of approximately $0.019 
per pound, which is 2.5 times the fresh mango assessment rate. 
Additionally, according to the Board, manufacturing costs are higher 
for frozen mangos than for fresh mangos because the fruit has been 
processed.
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    \6\ Kader, Adel A.; Fresh Cut Mangos as a Value-Added Product 
(Literature Review and Interviews); October 2. 2008; page 20.
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    The Board also considered assessment revenue as a percentage of 
value. Board members refer to this computation as the ``Mango 
Reinvestment Rate'' or MRR. To compute this for fresh mangos, 
assessment revenue is divided by the value of imported fresh product. 
The 3-year average for 2014-2016 for fresh mangos is 1.71 percent. The 
computation is shown in Table 4 below.

                       Table 4--Assessment Revenue as Percentage of Value for Fresh Mangos
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                                                                                                   Revenue as a
                              Year                                  Assessment         Value        percent of
                                                                      revenue                          value
                                                                             (A)             (B)             (C)
----------------------------------------------------------------------------------------------------------------
2016............................................................      $7,374,170    $101,204,418            1.75
2015............................................................       6,785,156     131,155,555            1.69
2014............................................................       6,249,918      82,257,399            1.68
3-yr average....................................................  ..............  ..............            1.71
----------------------------------------------------------------------------------------------------------------
Column (C) is computed by dividing Column A by Column B, and multiplying that figure by 100.


[[Page 14776]]

    The 1.71 percent MRR was shared with importers and processors of 
frozen mangos. A majority of the importers and processors contacted 
indicated that, while the MRR computation seems equitable, expenses are 
higher and the profit margins are lower for frozen mangos. The industry 
members contacted indicated that a MRR between 1.0 and 1.5 percent was 
more in line with what they saw as equitable for the frozen mango 
industry.
    Thus, the Board ultimately recommended an assessment rate for 
frozen mangos of $0.01 per pound. As shown in Table 5 below, this 
computes to an average MRR of 1.21 percent for 2014-2016. Additionally, 
only imports of frozen mangos would be assessed at this rate because 
first handlers in the United States receive only fresh mangos from 
producers.

                 Table 5--Projected Assessment Revenue as Percentage of Value for Frozen Mangos
----------------------------------------------------------------------------------------------------------------
                                                                    Assessment       Projected     Revenue as a
              Year                    Imports          Value         rate (per      assessment      percent of
                                     (pounds)                         pound)          revenue          value
                                             (A)             (B)             (C)             (D)             (E)
----------------------------------------------------------------------------------------------------------------
2016............................     117,724,239    $101,204,418           $0.01      $1,177,242            1.16
2015............................     139,492,136     131,155,555            0.01       1,394,921            1.06
2014............................     116,950,534      82,257,399            0.01       1,169,505            1.42
3-yr average....................  ..............  ..............  ..............  ..............            1.21
----------------------------------------------------------------------------------------------------------------
Column D is computed by multiplying Column B by Column C.
Column E is computed by dividing Column A by Column B, and multiplying that figure by 100.

    Accordingly, in Sec.  1206.42, paragraph (b) would be revised to 
specify an assessment rate of $0.01 per pound for frozen mangos, and 
paragraph (d)(2) would be revised to include the numbers for frozen 
mangos listed in the Harmonized Tariff Schedule (HTS) of the United 
States and update the HTS numbers for fresh mango imports. Section 
517(d) of the 1996 Act (7 U.S.C. 7416) provides authority for one or 
more rates of assessment to be levied under a research and promotion 
program.

Exemptions

    Section 1206.43 specifies that first handlers and importers of less 
than 500,000 pounds of mangos (fresh) may claim an exemption from the 
assessment obligation. The Board recommended revising the section to 
specify that importers of less than 200,000 pounds of frozen mangos be 
exempt from assessment. This was derived by taking into account the 
ratio for converting fresh mangos into frozen mangos (2.5 pounds of 
fresh to make 1 pound of frozen). Multiplying the factor 0.4 (1 pound 
frozen divided by 2.5 pounds fresh) by the fresh mango exemption of 
500,000 pounds computes to 200,000 pounds. Paragraphs (a) and (b) in 
Sec.  1206.43 would be revised accordingly. (First handlers only 
receive fresh mangos from domestic producers. Thus, the exemption 
threshold for frozen mangos would only apply to importers.)
    Subpart B of part 1206 specifies procedures for conducting a 
referendum. In Sec.  1206.101, paragraphs (c) and (d), respectively, 
define eligible first handlers and importers of 500,000 pounds or more 
of mangos (fresh) annually. This section would be revised to specify 
that importers of 200,000 pounds or more of frozen mangos would be 
eligible to vote in referenda.
    Further, this proposal would revise the term ``Board'' as defined 
in Sec.  1206.2 from the ``National Mango Promotion Board'' to 
``National Mango Board'' to reflect current practices. The term as it 
appears in Sec.  1206.30 and in the undesignated heading preceding 
Sec.  1206.30 would also be revised to read ``National Mango Board.'' 
Finally, this proposal would update the OMB control number specified in 
Sec.  1206.78 from 0581-0209 to 0581-0093.

Initial Regulatory Flexibility Act Analysis

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), AMS is required to examine the impact of the proposed rule on 
small entities. Accordingly, AMS has considered the economic impact of 
this action on such entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration defines, 
in 13 CFR part 121, small agricultural producers as those having annual 
receipts of no more than $750,000 and small agricultural service firms 
(first handlers and importers) as those having annual receipts of no 
more than $7.5 million.
    According to the Board, there are five first handlers of fresh 
mangos. Based on 2016 assessment data, the majority of first handlers 
handled less than $7.5 million worth of fresh mangos and would thus be 
considered small entities.
    Based on 2016 Customs data, there are about 275 importers of fresh 
mangos and 190 importers of frozen mangos. The majority of fresh and 
frozen mango importers import less than $7.5 million worth of fresh or 
frozen mangos and would also be considered small entities.
    This proposal invites comments on amending AMS' regulations 
regarding a fresh mango national research and promotion program to 
include frozen mangos as a covered commodity. The program is 
administered by the Board with oversight by USDA. This proposal would 
add definitions for frozen mangos (Sec.  1206.11) and foreign processor 
of frozen mangos (Sec.  1206.8); expand the Board's membership from 18 
to 21 by adding two importers of frozen mangos and one foreign 
processor of frozen mangos (Sec. Sec.  1206.30 and 1206.31); assess 
frozen mangos at a rate of $0.01 per pound (Sec.  1206.42); exempt from 
assessment importers who import less than 200,000 pounds of frozen 
mangos annually (Sec.  1206.43); and make clarifying and conforming 
changes to other provisions in part 1206 (revisions would be made to 
clarify the definitions for first handler (Sec.  1206.6) and importer 
(Sec.  1206.9); quorum requirements would be revised (Sec.  1206.34); 
and definitions for importers eligible to vote in referenda would be 
revised (Sec.  1206.101)). Authority for amending part 1206 is provided 
in Sec.  1206.36(m) and in section 514 of the 1996 Act. This proposal 
would also update the definition of term ``Board'' to reflect current 
practices (Sec.  1206.2, the heading preceding Sec.  1206.30, and Sec.  
1206.30). Section 1206.2 provides authority for revising the term 
``Board.'' Finally, this proposal would update one of the OMB numbers 
(0581-0209) listed in Sec.  1206.78.

[[Page 14777]]

    Mango producers are not subject to assessment under the program. 
Currently, first handlers and importers of less than 500,000 pounds of 
fresh mangos annually are exempt from assessment. Further, organic 
mangos and exports of U.S. mangos are also exempt from assessment under 
the program.
    Regarding the economic impact of this proposed rule on affected 
entities, importers of 200,000 pounds or more of frozen mangos annually 
would pay an assessment of $0.01 per pound. Based on Customs data, of 
the 190 importers of frozen mangos, about 60 imported 200,000 pounds or 
more in 2016 and would pay assessments, and thus 130 importers imported 
less than 200,000 pounds and would be exempt from paying assessments 
under the program. Exempt importers would be able to apply to the Board 
for a refund of assessments funds collected by Customs. Those 
requirements are detailed in the section of this document titled 
Paperwork Reduction Act. (The update to the term Board is 
administrative in nature.)
    Regarding the impact of this proposed action on the industry as a 
whole, as shown previously in Table 3, imports of frozen mangos 
averaged about 125 million pounds annually from 2014-2016. At an 
assessment rate of $0.01 per pound, this would equate to about $1.25 
million per year in assessment revenue.
    Further, this action would allow frozen mango stakeholders to 
participate in a coordinated effort to maintain and expand the existing 
market for frozen mangos. These efforts would be accomplished through 
Board activities including promotion, research, consumer information, 
education and industry information. By collaborating within the 
existing national mango promotion program, frozen mango stakeholders 
could provide to consumers more information on the various uses and 
benefits of frozen mangos in order to increase demand for the 
commodity.
    With regard to alternatives, the Board contemplated the merits of 
assessing all processed mangos (i.e., frozen as well as juice and 
concentrate). The Board's staff attended several process tradeshows, 
conferences, and other events to garner support for the mango program. 
After several outreach activities, the frozen mango industry 
demonstrated the highest response out of the other process categories 
to include under the mango program.
    As for alternative assessment rates, as previously mentioned, the 
Board considered the current assessment rate for fresh mangos of 
$0.0075 per pound. However, if the fresh equivalent assessment rate 
were applied to frozen mangos, frozen mango importers would pay an 
assessment of approximately $0.019 per pound, which is 2.5 times the 
fresh mango assessment rate. (It takes 2.5 pounds of fresh mangos to 
make one pound of frozen mangos.) Additionally, according to the Board, 
manufacturing costs are higher for frozen mangos than for fresh mangos 
because the fruit has been processed.
    The Board also considered assessment revenue as a percentage of 
value. Board members refer to this computation as the ``Mango 
Reinvestment Rate'' or MRR. To compute this for fresh mangos, 
assessment revenue is divided by the value imported fresh product. The 
3-year average for 2014-2016 for fresh mangos is 1.71 percent. The 
computation was shown previously in Table 4. The 1.71 percent MRR was 
shared with importers and processors of frozen mangos. A majority of 
the importers and processors contacted indicated that, while the MRR 
computation seems equitable, expenses are higher and the profit margins 
are lower for frozen mangos. Industry members contacted indicated that 
a MRR between 1.0 and 1.5 percent was more in line with what they saw 
as equitable for the frozen mango industry. Thus, the Board ultimately 
recommended an assessment rate for frozen mangos of $0.01 per pound. As 
shown previously in Table 5, this computes to an average MRR of 1.21 
percent for 2014-2016.
    The Board also considered alternative exemption thresholds. When 
the Board initially contemplated amending the mango regulations, it 
considered all categories of processed mangos, including juice, 
concentrate and frozen. Each of these categories has a different 
conversion ratio, or amount of fresh mangos that it takes to make the 
respective processed fruit. At that time, the Board considered an 
exemption threshold of 45,000 pounds. When the Board decided to pursue 
amending the program to include only frozen mangos, the Board also 
decided to recommend an exemption threshold of 200,000 pounds. This was 
based on the industry average ratio of 0.4 for converting fresh mangos 
into frozen mangos (2.5 pounds of fresh mangos to make one pound of 
frozen mangos). Multiplying the fresh mango exemption threshold of 
500,000 pounds by the 0.4 ratio equals 200,000 pounds. Thus, the Board 
recommended an exemption threshold of 200,000 pounds for frozen mangos.
    This action would impose additional reporting and recordkeeping 
requirements upon importers and processors of frozen mangos. Importers 
and foreign processors of frozen mangos who were eligible and 
interested in serving on the Board would submit a nomination form to 
the Board indicating their desire to serve or nominate another industry 
member to serve on the Board. Importers could cast a ballot and vote 
for candidates to serve on the Board. Frozen mango importer and foreign 
processor nominees would have to submit a background form to the 
Secretary to ensure they are qualified to serve on the Board.
    Additionally, importers of frozen mangos who import less than 
200,000 pounds annually could request an exemption from paying 
assessments. Importers of organic frozen mangos could submit a request 
to the Board for an exemption from assessment for their organic mango 
imports. Importers could also request a refund of assessments paid 
through Customs.
    Finally, frozen mango importers who want to participate in future 
referenda on the program would have to complete a ballot for submission 
to the Secretary.
    New forms are required to collect the referenced information. These 
forms will be submitted to OMB for approval under OMB Control No. 0581-
NEW. Specific burdens for the forms are detailed later in this document 
in the section titled Paperwork Reduction Act. As with all Federal 
promotion programs, reports and forms are periodically reviewed to 
reduce information requirements and duplication by industry and public 
sector agencies. Finally, there are no Federal rules that duplicate, 
overlap, or conflict with this proposed rule.
    In regard to outreach efforts, in 2015 the Board commissioned a 
study to determine industry support for amending part 1206. Processed 
mango importers responded in favor of amending the program. The survey 
respondents represented 72 percent of the imported processed mango 
volume. The Board also hosted a webinar in June 2015 and invited all 
known importers of processed mangos to participate. Fifteen industry 
members participated in the webinar. Of the attendees, 95 percent 
supported amending the program to include processed mangos. Two 
importers of frozen mangos participated in the Board's meeting in 
September 2015 where this issue was discussed.
    In 2016, Board representatives attended tradeshows and conferences 
for processed fruit products in the U.S. and visited several mango 
producing regions and receiving ports in order to meet with processors 
and importers to discuss amending the program. Board representatives 
attended 21 meetings

[[Page 14778]]

with frozen mango importers of record. The Board subsequently conducted 
another survey where 74 companies were contacted via electronic mail 
and telephone calls. For the companies that participated in the survey, 
71 percent were in favor of amending the program to include frozen 
mangos. The Board continues to educate and update the mango industry on 
its marketing activities.
    AMS has performed this initial RFA regarding the impact of this 
proposed amendment to part 1206 on small entities and invites comments 
concerning potential effects of this amendment on small businesses.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), AMS announces its intention to request an approval of new 
information collection and recordkeeping requirements for the frozen 
mango industry. Information collection and recordkeeping requirements 
for the fresh mango program (part 1206) have previously been approved 
under OMB control nos. 0581-0093 and 0505-0001. Upon approval of this 
action and associated burden, AMS would submit a Justification for 
Change to merge this new burden for frozen mangos into the currently 
approved collection for fresh mangos.
    Title: Frozen mango research, promotion and consumer information 
program.
    OMB Number: 0581--NEW.
    Type of Request: New information collection for research and 
promotion programs.
    Abstract: The information collection requirements in the request 
are essential to carry out the intent of the 1996 Act. The information 
collection concerns a recommendation received by USDA to amend the 
fresh mango national research and promotion program (part 1206) to 
include frozen mangos. The program is currently financed by an 
assessment on first handlers and importers of 500,000 pounds or more 
fresh mangos annually. The program is administered by the Board with 
oversight by USDA.
    In November 2016, the Board recommended amending part 1206 to 
include frozen mangos. Importers of 200,000 or more frozen mangos 
annually would pay assessments. The Board would be expanded from 18 to 
21 members by adding two importers of frozen mangos and one foreign 
processor of frozen mangos. This action would allow frozen mango 
stakeholders to participate in a coordinated effort to maintain and 
expand the market for frozen mangos.
    In summary, the information collection requirements regarding 
frozen mangos pertain to Board nominations, the collection of 
assessments, and referenda. Frozen mango importers and foreign 
processors interested in serving on the Board would submit a 
``Nomination Form'' to the Board indicating their desire to serve or to 
nominate another industry member to serve on the Board. They could 
submit a ``Nomination Ballot'' to the Board where they would vote for 
candidates to serve on the Board. Nominees would also have to submit a 
background information form, ``AD-755,'' to the Secretary to ensure 
they are qualified to serve. Frozen mango importers of less than 
200,000 pounds annually could submit a request, ``Application for 
Exemption from Assessments,'' to the Board and request a refund of any 
assessments paid using proposed form ``Application for Reimbursement of 
Assessment.'' (Import assessments would be collected by Customs and 
remitted to the Board.) Importers of organic frozen mangos could also 
apply to the Board for an exemption from assessment. Finally, importers 
of frozen mangos would have the opportunity to vote in future referenda 
on the program.
    This new information collection would impose a total burden of 
167.37 hours and 287.48 responses for 190 respondents. New information 
collection requirements that are included in this proposal pertaining 
to the frozen mango industry include:

(1) Nomination Form

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hour per response.
    Respondents: Importers of 200,000 pounds or more of frozen mangos 
annually and foreign processors.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: .33 (1 every 3 
years).
    Estimated Total Annual Burden on Respondents: 1.65 hours.

(2) Nomination Ballot

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hour per response.
    Respondents: Importers of 200,000 pounds or more of frozen mangos 
annually and foreign processors.
    Estimated Number of Respondents: 30.
    Estimated Number of Responses per Respondent: .33 (1 every 3 
years).
    Estimated Total Annual Burden on Respondents: 2.48 hours.

(3) Application for Exemption From Assessments

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hour per response. Upon 
approval, the applicant would receive exemption certification.
    Respondents: Importers of less than 200,000 pounds of frozen mangos 
annually.
    Estimated Number of Respondents: 130.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 32.5 hours.

(4) Application for Reimbursement of Assessment

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hour per response.
    Respondents: Importers of less than 200,000 pounds of frozen mangos 
annually.
    Estimated Number of Respondents: 130.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 32.5 hours.

(5) Organic Exemption Request Form

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hour per response.
    Respondents: Importers of 200,000 pounds or more of organic frozen 
mangos annually.
    Estimated Number of Respondents: 5.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 1.25 hours.

(6) Referendum Ballot

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hour per response.
    Respondents: Importers of 200,000 pounds or more of frozen mangos 
annually.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: .20 (1 every 5 
years).
    Estimated Total Annual Burden on Respondents: 1.0 hours.

(7) Background Information Form AD--755 (OMB Form No. 0505-0001)

    Estimate of Burden: Public reporting burden for this collection of 
information

[[Page 14779]]

is estimated to average 0.5 hour per response.
    Respondents: Importers of 200,000 pounds or more of frozen mangos 
and foreign processors.
    Estimated Number of Respondents: 6.
    Estimated Number of Responses per Respondent: .33 (1 every 3 
years).
    Estimated Total Annual Burden on Respondents: 1.0 hour.

(8) A Requirement To Maintain Records Sufficient To Verify Reports 
Submitted Under Part 1206

    Estimate of Burden: Public recordkeeping burden for keeping this 
information is estimated to average 0.5 hour per record keeper 
maintaining such records.
    Recordkeepers: Importers of frozen mangos.
    Estimated number of recordkeepers: 190 (130 exempt and 60 
assessment payers).
    Estimated total recordkeeping hours: 95 hours.
    An estimated 190 respondents would provide information to the 
Board. The estimated cost of providing the information to the Board by 
respondents would be $2,870.90. This total has been estimated by 
multiplying 95 total hours required for reporting and recordkeeping by 
$30.22, the average mean hourly earnings of importers. Data for 
computation of this hourly rate was obtained from the U.S. Department 
of Labor Statistics.
    The proposed revisions to the fresh mango program have been 
carefully reviewed, and every effort has been made to minimize any 
unnecessary recordkeeping costs or requirements, including efforts to 
utilize information already submitted under other programs administered 
by USDA and other state programs.
    The proposed forms would require the minimum information necessary 
to effectively carry out the requirements of the program, and their use 
is necessary to fulfill the intent of the 1996 Act. Such information 
can be supplied without data processing equipment or outside technical 
expertise. In addition, there are no additional training requirements 
for individuals filling out reports and remitting assessments to the 
Board. The forms would be simple, easy to understand, and place as 
small a burden as possible on the person required to file the 
information.
    The information to be included on these forms is not available from 
other sources because such information relates specifically to 
individual importers and processors of frozen mangos who would be 
subject to the provisions of the 1996 Act. Therefore, there is no 
practical method for collecting the required information without the 
use of these forms.

Request for Public Comment Under the Paperwork Reduction Act

    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of functions of the 
proposed amended program and USDA's oversight of the proposed amended 
program, including whether the information would have practical 
utility; (b) the accuracy of USDA's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (c) the accuracy of USDA's estimate 
of the number of importers of frozen mangos that would be covered under 
the program; (d) ways to enhance the quality, utility, and clarity of 
the information to be collected; and (e) ways to minimize the burden of 
the collection of information on those who are to respond, including 
the use of appropriate automated, electronic, mechanical, or other 
technological collection techniques or other forms of information 
technology.
    Comments concerning the information collection requirements 
contained in this action should reference OMB No. 0581-NEW. In 
addition, the document number, date, and page number of this issue of 
the Federal Register also should be referenced. Comments should be sent 
to the same addresses referenced in the ADDRESSES section of this 
proposed rule.
    OMB is required to make a decision concerning the collection of 
information contained in this proposed rule between 30 and 60 days 
after publication. Therefore, a comment to OMB is best assured of 
having its full effect if OMB receives it within 30 days of 
publication.
    AMS is committed to complying 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.
    USDA has determined that this proposed rule is consistent with and 
would effectuate the purposes of the 1996 Act.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments received in response to 
this proposed rule by the date specified would be considered prior to 
finalizing this action.

List of Subjects in 7 CFR Part 1206

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Mango promotion, Reporting and 
recording requirements.

    For the reasons set forth in the preamble, 7 CFR part 1206 is 
proposed to be amended as follows:

PART 1206--MANGO RESEARCH, PROMOTION, AND INFORMATION ORDER

0
1. The authority citation for 7 CFR part 1206 continues to read as 
follows:

    Authority:  7 U.S.C. 7411-7425 and 7401.

0
2. Revise Sec.  1206.2 to read as follows:


Sec.  1206.2   Board.

    Board or National Mango Board means the administrative body 
established pursuant to Sec.  1206.30, or such other name as 
recommended by the Board and approved by the Department.
0
3. Revise Sec.  1206.6 to read as follows:


Sec.  1206.6   First handler.

    First handler means any person (excluding a common or contract 
carrier) receiving fresh mangos from producers in a calendar year and 
who as owner, agent, or otherwise ships or causes mangos to be shipped 
as specified in this Order. This definition includes those engaged in 
the business of buying, selling and/or offering for sale; receiving; 
packing; grading; marketing; or distributing mangos in commercial 
quantities. The term first handler includes a producer who handles or 
markets mangos of the producer's own production.
0
4. Amend Sec.  1206.8 by revising the section heading, designating the 
introductory text as paragraph (a) and adding paragraph (b) to read as 
follows:


Sec.  1206.8   Foreign producers and foreign processor of frozen mangos 
or foreign processor.

* * * * *
    (b) Foreign processor of frozen mangos or foreign processor means 
any person:
    (1) Who is engaged in the preparation of frozen mangos for market 
to the United States and/or who owns or shares the ownership and risk 
of loss of such mangos; and
    (2) Who exports frozen mangos to the United States.
0
5. Revise Sec.  1206.9 to read as follows:


Sec.  1206.9   Importer.

    Importer means any person importing mangos into the United States 
in a calendar year as a principal or as an

[[Page 14780]]

agent, broker, or consignee of any person who produces or handles 
mangos outside of the United States for sale in the United States, and 
who is listed as the importer of record for such mangos.
0
6. Revise Sec.  1206.11 to read as follows:


Sec.  1206.11   Mangos.

    Mangos means the fruit of Mangifera indica L. of the family 
Anacardiaceae. For purposes of this Order, the term mangos includes:
    (a) Fresh mangos, which means mangos in their fresh form; and
    (b) Frozen mangos, which means mangos that are uncooked or cooked 
by steaming or boiling in water, and then frozen, whether or not 
containing added sugar or other sweetening agent.
0
7. Revise the undesignated center heading preceding


Sec.  1206.30  to read ``National Mango Board.''

0
8. In Sec.  1206.30, revise paragraph (a) and the introductory text of 
paragraph (b) to read as follows:


Sec.  1206.30   Establishment and membership.

    (a) Establishment of the National Mango Board. There is hereby 
established a National Mango Board composed of eight importers of fresh 
mangos; one first handler of fresh mangos; two domestic producers of 
fresh mangos; seven foreign producers of fresh mangos; two importers of 
frozen mangos; and one foreign processor of frozen mangos. First 
handler Board members must receive 500,000 pounds or more of fresh 
mangos annually from producers, and importer Board members must import 
500,000 pounds or more of fresh mangos or 200,000 pounds or more of 
frozen mangos annually. The chairperson shall reside in the United 
States and the Board office shall also be located in the United States.
    (b) Importer districts. Board seats for importers of fresh mangos 
shall be allocated based on the volume of fresh mangos imported into 
the Customs Districts identified by their name and Code Number as 
defined in the Harmonized Tariff Schedule of the United States. Two 
seats shall be allocated for District I, three seats for District II, 
two seats for District III, and one seat for District IV. Two at-large 
seats shall be allocated for importers of frozen mangos who import into 
any of the four defined districts.
* * * * *
0
9. In Sec.  1206.31, revise paragraph (e), redesignate paragraph (h) as 
paragraph (k), and add new paragraphs (h), (i), and (j) to read as 
follows:


Sec.  1206.31   Nominations and appointments.

* * * * *
    (e) Nominees to fill the fresh mango importer positions on the 
Board shall be solicited from all known importers of fresh mangos. The 
members from each district shall select the nominees for two positions 
on the Board. Two nominees shall be submitted for each position. The 
nominees shall be placed on a ballot which will be sent to fresh mango 
importers in the districts for a vote. For each position, the nominee 
receiving the highest number of votes and the nominee receiving the 
second highest number of votes shall be submitted to the Department as 
the fresh importers' first and second choice nominees.
* * * * *
    (h) Nominees to fill the foreign processor of frozen mangos 
position on the Board shall be solicited from foreign mango 
organizations and from foreign processors. Foreign mango organizations 
shall submit two nominees for each position, and foreign processors may 
submit their name or the names of other foreign processors directly to 
the Board. The nominees shall represent the major countries exporting 
frozen mangos to the United States.
    (i) Nominees to fill the at-large positions on the Board shall be 
solicited from all known importers of frozen mangos. The members from 
each district shall select the nominees for the two at-large positions 
on the Board. Two nominees shall be submitted for each position. The 
nominees shall be placed on a ballot which will be sent to importers of 
frozen mangos in each of the four districts for a vote. For each 
position, the nominee receiving the highest number of votes and the 
nominee receiving the second highest number of votes shall be submitted 
to the Department as the first and second choice nominees.
    (j) First handler nominees must receive 500,000 pounds or more of 
fresh mangos annually from producers, and importer nominees must import 
500,000 pounds or more of fresh mangos or 200,000 pounds or more of 
frozen mangos annually.
0
10. Revise Sec.  1206.32 to read as follows:


Sec.  1206.32   Term of office.

    The term of office for first handler, importer, domestic producer, 
and foreign producer and foreign processor members of the Board will be 
three years. Members may serve a maximum of two consecutive three-year 
terms. Each term of office will end on December 31, with new terms of 
office beginning on January 1.
0
11. In Sec.  1206.34, revise paragraph (a) to read as follows:


Sec.  1206.34   Procedure.

    (a) At a Board meeting, it will be considered a quorum when at 
least eleven voting members are present.
* * * * *
0
12. In Sec.  1206.42, revise paragraphs (b), (d)(1), (d)(2), (d)(3) and 
(d)(4) to read as follows:


Sec.  1206.42   Assessments.

* * * * *
    (b) The assessment rate on all fresh mangos shall be three quarters 
of a cent ($0.0075) per pound (or $0.0165 per kg). The assessment rate 
on all frozen mangos shall be one cent ($0.01) per pound (or $0.022 per 
kg). The assessment rates will be reviewed periodically and may be 
modified by the Board with the approval of the Department.
* * * * *
    (d) * * *
    (1) The assessment rate for imported fresh mangos that are 
identified by the numbers 0804.50.4040 and 0804.50.6040 in the 
Harmonized Tariff Schedule (HTS) of the United States shall be the same 
or equivalent to the rate for mangos produced in the United States.
    (2) The import assessment shall be uniformly applied to imported 
frozen mangos that are identified by the numbers 0804.50.4045, 
0804.50.4055, 0804.50.6045, 0804.50.6055, and 0811.90.5200 in the 
Harmonized Tariff Schedule (HTS) of the United States shall be the same 
or equivalent to the rate for mangos produced in the United States.
    (3) In the event that any HTS number subject to assessment is 
changed and such change is merely a replacement of a previous number 
and has no impact on the description of fresh mango and frozen mangos, 
assessments will continue to be collected based on the new numbers.
    (4) The assessments due on imported mangos shall be paid when they 
enter or are withdrawn for consumption in the United States.
* * * * *
0
13. In Sec.  1206.43, revise paragraphs (a) and (b) to read as follows:


Sec.  1206.43   Exemptions.

    (a) Any first handler of less than 500,000 pounds of fresh mangos 
per calendar year, or importer of less than 500,000 pounds of fresh 
mangos or less than 200,000 pounds of frozen mangos per calendar year 
may claim an exemption from the assessments required under Sec.  
1206.42. First handlers who export mangos from the United States may 
annually claim an exemption

[[Page 14781]]

from the assessments required under Sec.  1206.42.
    (b) A first handler or importer desiring an exemption shall apply 
to the Board, on a form provided by the Board, for a certificate of 
exemption. A first handler must certify that it will receive less than 
500,000 pounds of domestic fresh mangos during the fiscal period for 
which the exemption is claimed. An importer must certify that it will 
import less than 500,000 pounds of fresh mangos or less than 200,000 
pounds of frozen mangos for the fiscal period for which the exemption 
is claimed.
* * * * *
0
14. Revise Sec.  1206.78 to read as follows:


Sec.  1206.78   OMB control number.

    The control numbers assigned to the information collection 
requirements of this part by the Office of Management and Budget 
pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35, 
are OMB control number 0505-0001 and OMB control number 0581-0093.
0
15. In Sec.  1206.101, revise paragraphs (c), (d) and (e) to read as 
follows:


Sec.  1206.101   Definitions.

* * * * *
    (c) Eligible first handler means any person, (excluding a common or 
contract carrier), receiving 500,000 or more pounds of fresh mangos 
from producers in a calendar year and who as owner, agent, or otherwise 
ships or causes mangos to be shipped as specified in this Order. This 
definition includes those engaged in the business of buying, selling 
and/or offering for sale; receiving; packing; grading; marketing; or 
distributing mangos in commercial quantities. The term first handler 
includes a producer who handles or markets mangos of the producer's own 
production.
    (d) Eligible importer means any person importing 500,000 or more 
pounds of fresh mangos or 200,000 or more pounds of frozen mango into 
the United States in a calendar year as a principal or as an agent, 
broker, or consignee of any person who produces or handles mangos 
outside of the United States for sale in the United States, and who is 
listed as the importer of record for such mangos that are identified in 
the Harmonized Tariff Schedule of the United States by the numbers 
0804.50.4045, 0804.50.4055, 0804.50.6045, 0804.50.6055, and 
0811.90.5200, during the representative period. Importation occurs when 
mangos originating outside of the United States are released from 
custody by Customs and introduced into the stream of commerce in the 
United States. Included are persons who hold title to foreign-produced 
mangos immediately upon release by Customs, as well as any persons who 
act on behalf of others, as agents or brokers, to secure the release of 
mangos from Customs when such mangos are entered or withdrawn for 
consumption in the United States.
    (e) Mangos means the fruit of Mangifera indica L. of the family 
Anacardiaceae. The term mangos includes:
    (1) Fresh mangos, which means in their fresh form; and
    (2) Frozen mangos, which means mangos that are uncooked or cooked 
by steaming or boiling in water, and then frozen, whether or not 
containing added sugar or other sweetening agent.
* * * * *

    Dated: April 2, 2018.
Bruce Summers,
Acting Administrator.
[FR Doc. 2018-06968 Filed 4-5-18; 8:45 am]
 BILLING CODE 3410-02-P