[Federal Register Volume 84, Number 35 (Thursday, February 21, 2019)]
[Rules and Regulations]
[Pages 5335-5346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02859]



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 Rules and Regulations
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  Federal Register / Vol. 84, No. 35 / Thursday, February 21, 2019 / 
Rules and Regulations  

[[Page 5335]]



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: Final rule.

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

SUMMARY: This rule amends the Agricultural Marketing Service's (AMS) 
regulations regarding a fresh mango national research and promotion 
program to include frozen mangos as a covered commodity under the Mango 
Promotion, Research and Information Order. The importers of frozen 
mangos will be assessed one cent ($0.01) per pound on frozen mangos. 
Also, the National Mango Board's (Board) membership will be expanded 
from 18 to 21 with the addition of two importers of frozen mangos and 
one foreign processor.

DATES: Effective March 25, 2019.
    Collection and remittance of frozen mangos assessments and 
applicable reporting will begin July 22, 2019.

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 final rule 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 final rule 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 
will not have substantial and direct effects on Tribal governments and 
will not have significant Tribal implications.

Executive Order 12988

    In addition, this final rule 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 issued under the Act may file a written petition with USDA 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order, is not established in accordance 
with the law, and request a modification of the order or an exemption 
from the 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 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 rule amends the 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 rule will 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 will 
allow frozen mango stakeholders to participate in a coordinated effort 
to maintain and expand the market for frozen mangos. This rule will 
also update the definition for the term ``Board'' to reflect current 
practices. Additionally, AMS has requested approval by OMB for the 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

[[Page 5336]]

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.
---------------------------------------------------------------------------

    \1\ https://apps.fas.usda.gov/gats/default.aspx.

                    Table 1--Volume, Value and Price/Pound for Fresh Mango Imports 2005-2016
----------------------------------------------------------------------------------------------------------------
                                                       Imports (pounds)
                        Year                                  (A)             Value  (B)       Price/pound  (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
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 current 
assessment rate under the program for fresh mangos is $0.0075 per 
pound, pursuant to Sec.  1206.42(b).
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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 partly 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 increasing 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 of 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 of 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.
---------------------------------------------------------------------------

    \4\ https://apps.fas.usda.gov/gats/default.aspx.

                    Table 2--Volume, Value and Price/Pound for Frozen Mango Imports 2005-2016
----------------------------------------------------------------------------------------------------------------
                                                       Imports (pounds)
                        Year                                  (A)             Value  (B)       Price/pound  (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.


[[Page 5337]]

Board Recommendation

    Because of the current program's success at increasing 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, 
current Board promotion efforts only support mangos for the fresh 
market.
    Thus, the Board recommended amending part 1206 to include frozen 
mangos. This will allow frozen mango stakeholders to participate in a 
coordinated effort to maintain and expand the existing market for 
frozen mangos. These efforts will 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 
can 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 will 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 will 
be revised to mean the fruit of Mangifera indica L. of the family 
Anacardiaceae and will include both fresh and frozen mangos. Separate 
definitions will be added in new paragraphs (a) and (b) of Sec.  
1206.11 for fresh and frozen mangos, respectively. ``Fresh mangos'' 
will mean mangos in their fresh form. ``Frozen mangos'' will 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 will be added to part 1206 for ``foreign processor of 
frozen mangos.'' Section 1206.8, which currently defines the term 
``foreign producer'' will be redesignated as Sec.  1206.8a, and a new 
Sec.  1206.8 will 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 will 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 will be 
revised to remove the references to volume. 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'' will 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 will 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 will 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 mango imports for 
the 3-year period.
---------------------------------------------------------------------------

    \5\ https://apps.fas.usda.gov/gats/default.aspx.

                            Table 3--Fresh and Frozen Mango Import Volumes 2014-2016
----------------------------------------------------------------------------------------------------------------
                                                                                                Total fresh and
                 Year                      Fresh mango imports        Frozen mango 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......................  88 percent \1\...........  12 percent \2\...........  ..................
----------------------------------------------------------------------------------------------------------------
\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) will represent foreign mangos. 
Further, 3 of the 18 foreign-product seats (importers and foreign 
producers) will represent frozen imported mangos (almost 17 percent) 
and the remaining 15 seats (over 83 percent) will represent fresh 
imported mangos. USDA concludes that the Board's recommendation 
regarding frozen mango representation on the Board is

[[Page 5338]]

reasonable and Sec.  1206.30(a) will be revised accordingly.
    Additionally, a sentence will 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 
will be revised to state that the two Board seats for importers of 
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 can encourage 
participation on the Board from this new importer 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 (Secretary) then selects the members of the Board.
    This section will be revised to specify procedures for nominating 
foreign processors and importers of frozen mangos. The procedures will 
be similar to those in place for first handlers and importers of fresh 
mangos. Nominees to fill the foreign processor seat will be solicited 
from foreign mango organizations and from foreign processors. Foreign 
mango organizations will submit two nominees for each position, and 
foreign processors can submit their own name or the names of other 
foreign processors directly to the Board. The nominees will represent 
the major countries exporting frozen mangos to the United States.
    Nominees to fill the two at-large seats on the Board will be 
solicited from all known importers of frozen mangos. The members from 
each district will select the nominees for the two at-large positions 
on the Board. Two nominees will be submitted for each position. The 
names of the nominees will be placed on a ballot that 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 will 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, will be revised to 
clarify that the procedures pertain to fresh mango importers. Further, 
paragraph (h) will be redesignated as paragraph (k), a new paragraph 
(h) will be added to specify procedures for nominating foreign 
processors, and a new paragraph (i) will be added to specify procedures 
for nominating frozen mango importers.
    A new paragraph (j) will 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 will 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 will be 3 
years, and no member can 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. This rule will increase the number 
of Board seats from 18 to 21, which necessitates an increase in quorum 
requirements. Therefore, this section will be revised to specify that a 
quorum at a Board meeting exists when at least 11 of the 21 Board 
members are 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.
---------------------------------------------------------------------------

    \6\ Kader, Adel A.; Fresh Cut Mangos as a Value-Added Product 
(Literature Review and Interviews); October 2. 2008; page 20.
---------------------------------------------------------------------------

    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
----------------------------------------------------------------------------------------------------------------
                                                             Assessment                           Revenue as a
                          Year                                revenue             Value         percent of value
                                                                       (A)                (B)                (C)
----------------------------------------------------------------------------------------------------------------
2016...................................................         $7,374,170       $101,204,418               1.75
2015...................................................          6,785,156        131,155,555               1.69

[[Page 5339]]

 
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.

    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 will 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) will be revised to 
specify an assessment rate of $0.01 per pound for frozen mangos, and 
paragraph (d)(2) will 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 amount 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 will be revised accordingly. (First handlers only receive 
fresh mangos from domestic producers. Thus, the exemption threshold for 
frozen mangos will 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 as those that handle or 
import 500,000 pounds or more of mangos (fresh) annually. This section 
will be revised to specify that importers of 200,000 pounds or more of 
frozen mangos will be eligible to vote in referenda.
    Further, this rule will 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 
will also be revised to read ``National Mango Board.'' Finally, this 
rule will update the OMB control number specified in Sec.  1206.78 from 
0581-0209 to 0581-0093.

Final 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 final 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,\7\ 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.
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    \7\ https://www.cbp.gov/trade/automated.
---------------------------------------------------------------------------

    This rule amends AMS' regulations regarding a fresh mango national

[[Page 5340]]

research and promotion program to include frozen mangos as a covered 
commodity. The program is administered by the Board with oversight by 
USDA. This rule will 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 will 
be made to clarify the definitions for first handler (Sec.  1206.6) and 
importer (Sec.  1206.9); quorum requirements will be revised (Sec.  
1206.34); and definitions for importers eligible to vote in referenda 
will 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 
rule will 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 rule will update one of the OMB numbers 
(0581-0209) listed in Sec.  1206.78.
    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 rule on affected entities, 
importers of 200,000 pounds or more of frozen mangos annually will pay 
an assessment of $0.01 per pound. Based on Customs \8\ data, of the 190 
importers of frozen mangos, about 60 imported 200,000 pounds or more in 
2016 and will pay assessments, and thus 130 importers imported less 
than 200,000 pounds and will be exempt from paying assessments under 
the program. Exempt importers will 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.)
---------------------------------------------------------------------------

    \8\ https://www.cbp.gov/trade/automated.
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    Regarding the impact of this final rule 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 rule will allow frozen mango stakeholders to 
participate in a coordinated effort to maintain and expand the existing 
market for frozen mangos in the United States. These efforts will 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 
collecting assessments for 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 positive response of the other 
process categories to be included 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 of 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 expanding the mango program, it 
considered including 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 will impose additional reporting and recordkeeping 
requirements upon importers and processors of frozen mangos. Importers 
and foreign processors of frozen mangos eligible to and interested in 
serving on the Board must submit a nomination form to the Board 
indicating their desire to serve or nominate another industry member to 
serve on the Board. Importers can cast a ballot and vote for candidates 
to serve on the Board. Frozen mango importer and foreign processor 
nominees must 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 can request an exemption from paying 
assessments. Importers of organic frozen mangos can submit a request to 
the Board for an exemption from assessment for their organic mango 
imports. Importers can also request a refund of assessments paid 
through Customs.
    Finally, frozen mango importers who want to participate in future 
referenda on the program will 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-
0314.

[[Page 5341]]

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 rule.
    In regard to outreach efforts, in 2015 the Board commissioned a 
survey to determine industry support for expanding the coverage of 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 expanding 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 with frozen mango importers of record. The Board 
subsequently conducted another survey where 74 companies were contacted 
via electronic mail and telephone calls. Of the companies that 
participated in the survey, 71 percent were in favor of expanding the 
program to include frozen mangos. The Board continues to educate and 
update the mango industry on its marketing activities.
    A proposed rule concerning this action was published in the Federal 
Register on April 6, 2018 (83 FR 14771). A notice was published on July 
12, 2018 (83 FR 32215) to open and extend the comment period. The Board 
sent the proposed rule to the associations that represent the fresh 
mango associations. In addition, the Board disseminated the proposed 
rule via the internet by providing links to the proposal in its 
industry newsletter and website. The proposal was also made available 
through the internet by USDA and the Office of the Federal Register. A 
60-day comment period ending June 5, 2018, and a 30-day comment period 
extension ending August 13, 2018, which is a total of 90 days, were 
provided to allow interested persons to submit comments.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), AMS requested approval of the 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. AMS will 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: 0581-0314.
    Expiration Date of Approval: 3 years from approval date.
    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 will pay assessments. The Board will be expanded from 18 to 21 
members by adding two importers of frozen mangos and one foreign 
processor of frozen mangos. This action will 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 must submit a 
``Nomination Form'' to the Board indicating their desire to serve or to 
nominate another industry member to serve on the Board. They can submit 
a ``Nomination Ballot'' to the Board where they will vote for 
candidates to serve on the Board. Also, nominees must 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 can submit a request, ``Application for 
Exemption from Assessments,'' to the Board and request a refund of any 
assessments paid using the form ``Application for Reimbursement of 
Assessment.'' (Import assessments will 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 will have the opportunity to vote in future referenda 
on the program.
    This new information collection will impose a total burden of 
167.37 hours and 287.48 responses for 190 respondents. New information 
collection requirements that are included in this rule 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 will 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.

[[Page 5342]]

(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 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 will 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 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 forms 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 
are 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 are 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.
    The proposed rule published on April 6, 2018, with a 60-day comment 
period ended on June 5, 2018. A notice was published on July 12, 2018, 
in the Federal Register, to reopen the comment period for an additional 
30 days until August 13, 2018. Additionally, comments were invited on 
the information collection requirements prescribed in the Paperwork 
Reduction Act section of this rule. The proposed rule provided for a 
90-day comment period which ended August 13, 2018. No comments were 
received regarding the information collection.
    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.

Analysis of Comments

    The proposed rule published in the Federal Register on April 6, 
2018, provided a 60-day comment period that ended June 5, 2018. A 
notice published on July 12, 2018, reopened the comment period for an 
additional 30 days that ended on August 13, 2018. In total, nineteen 
comments were received. Of the 19 comments, 14 comments were in favor, 
3 comments in opposition, and 2 commented without taking a position on 
the proposal. Two of the supporting comments were responding to a 
commenter who opposed the proposed amendment.

Comments in Support

    In general, eight commenters in favor of the proposed rule agreed 
that the combined marketing efforts of the two industries will likely 
result in the greater demand for mango consumption for both industries. 
Also, three commenters stated by expanding the program to include 
frozen mangos, it would leverage mango exposure to consumers whether 
fresh or frozen in foodservice.
    In addition, three commenters stated if the Board creates new 
opportunities for frozen mangos, consumers will discover the health 
benefits of frozen mangos and the ease of use, shelf stability, and 
consistency in supply which will help grow the mango industry as a 
whole.
    One commenter stated an organization conducted a survey in 2014 of 
frozen mango companies and 68 percent of the frozen mango processing 
companies responded that promoting process mango would increase their 
sales. Of the U.S. respondents alone, 75 percent of companies believed 
promoting frozen mangos would improve sales.
    Also, one commenter discussed how the Board spent several years and 
financial resources conducting outreach meetings to gauge the interest 
level of the mango processing community. The same commenter further 
states the Board staff attended a processed mango conference in 
multiple years to provide details on the proposed amendment and receive 
feedback from the conference attendees. Additionally, the same 
commenter states the goal of the proposed amendment is to strengthen 
the mango industry for fresh and frozen mango products which will 
benefit growers, processors, importers, and distributers in the mango 
industry.

[[Page 5343]]

    One commenter stated that the Board considers the proposed 
assessment rate of $0.01 per pound for frozen mangos to be equitable. 
The same commenter states the proposed three new seats on the Board 
should be proportional to the revenue that would be generated by adding 
frozen mangos to the program. In other words, if the proposed frozen 
mango assessment rate is lowered, the number of new Board seats should 
be reduced from three to two seats. The commenter believes this 
modification would be more in line with the additional funds that would 
be generated from the frozen mango assessment revenue at a lower 
assessment rate. USDA will not modify the assessment rate or reduce the 
number of new Board seats for the frozen mango importers and foreign 
processors because USDA believes the proposal submitted by the Board 
appears to be equitable based on the projected revenue that frozen 
mangos is expected to generate shown in Table 5.
    In addition, the same commenter stated the decision to broaden the 
program to include frozen mangos should be decided in a referendum by 
those who will be subject to assessment under the expanded program, 
both fresh mango handlers and importers and frozen mango importers. 
USDA agrees. Section 518(d) of the 1996 Act (7 U.S.C. 7417(d)) states 
that the Secretary may conduct a referendum at any time to determine 
whether the continuation, suspension, or termination of the order or a 
provision of the order is favored by persons eligible to vote under the 
program. Once this final rule becomes effective, USDA will conduct a 
referendum to allow importers and handlers of fresh mangos and 
importers of frozen mangos to vote on whether they approve the 
continuation of the program with the inclusion of frozen mangos.

Comments Opposed

    One commenter in opposition to the proposed rule stated that the 
more the Board promotes fresh mangos, the fewer mangos that are 
available to the frozen industry. As presented in the proposal, 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. Based on the data 
presented, frozen mango imports has increased during the Board's 
marketing promotions for fresh mangos.
    Two commenters stated there would be a conflict to add frozen 
mangos to the current fresh mango program. USDA does not perceive this 
proposal as a conflict of interest between the fresh and frozen mango 
industries. USDA provides oversight to other commodity boards such as 
the U.S. Highbush Blueberry Council and the National Potato Promotion 
Board that consist of both fresh and processed industry members. USDA's 
experience is that both fresh and processed commodity industries 
benefit from participation in a research and promotion program. The 
same commenters expressed concerns about how the Board would use the 
assessment revenue collected on imports of frozen mangos. When the 
Board begins the collection of assessments on the imports of frozen 
mangos, the Board which includes the new frozen members will develop a 
sound marketing strategy to promote frozen mangos which must be 
approved by USDA.
    Furthermore, two commenters stated the proposed assessment rate of 
one cent per pound on frozen mangos was higher than the assessment rate 
of three quarters of a cent per pound on fresh mangos. The commenters 
argue that the additional cost of frozen mango product will make the 
product much less competitive in the marketplace. As stated in the 
proposal, in the Board's deliberations on the proposed assessment rate 
for frozen mangos, the Board considered the current assessment rate for 
fresh mangos of three quarters of a cent per pound. Board members took 
into account that it takes 2.5 pounds of fresh mangos to produce one 
pound of frozen mangos. 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. According to the Board, manufacturing 
costs are higher for frozen mangos than for fresh mangos because the 
fruit has been processed. The Board recommended an assessment rate for 
frozen mangos of one cent per pound. As shown in Table 5 of the 
proposal, this computes to an average MRR of 1.21 percent for 2014-
2016. USDA accepts the Board's recommendation to assess frozen mangos 
at one cent per pound based on the data provided in Table 5 of the 
proposal.
    Two commenters stated that other processed mango categories such as 
canned, dried, and concentrate mangos were not included in the 
proposal. As stated in the proposed rule, the Board contemplated the 
merits of assessing all processed mangos. The Board's staff attended 
several conferences, tradeshows, and other events to garner support for 
the mango program. After the Board's outreach activities were 
conducted, the frozen mango industry demonstrated the highest level of 
interest of the other process categories to be included in the mango 
program. USDA accepts the Board's recommendation to include frozen 
mangos in the mango program.
    Furthermore, one commenter stated that other processed mango 
categories such as canned, dried, and concentrate mangos would not be 
subject to assessments. This commenter is correct. The processed mangos 
categories for asceptic, canned, concentrate, and dried mangos will not 
be subject to assessments based on the proposed rule.
    One commenter stated it was not clear whether the proposal to 
include frozen mangos is to augment the Board's annual assessment 
revenue or if the added revenue is expected to target specific frozen 
mango production strategies. As presented in the proposed rule, if 
frozen mango is included in the mango program and assessment 
collections begins, the Board will use the additional assessment 
revenue to maintain and expand the existing market for frozen mangos. 
These efforts would be accomplished through Board activities including 
promotion, research, consumer and industry information.
    The same commenter stated the program does not outline any specific 
proposal that prioritizes frozen mangos in its future research and 
promotion programs. The specifics on how assessment funds would be 
invested to promote frozen mango are not outlined in the proposal 
because collection of assessments on frozen mangos has yet to begin. 
When the Board begins the collection of assessments on the imports of 
frozen mangos, the Board will develop a sound marketing strategy to 
promote frozen mangos that must be approved by USDA. In addition, when 
the two new importers of frozen mangos and one foreign frozen mango 
processor members of the Board have been seated, they too can 
participate in the development of the budget for research and marketing 
strategies for both frozen and fresh mangos.
    One commenter stated that though the proposal clarified that three 
new seats would be added to the Board's membership--two for frozen 
importers and one for a frozen processor--it did not make clear to what 
extent these entities could be involved in both the fresh mango 
production and frozen mango processing. The two additional seats for 
importers of frozen mango can be filled by a person who imports fresh 
and frozen mangos as long as they meet

[[Page 5344]]

the requirements as discussed in the Nomination and Appointments 
section of this final rule. Also, for the additional seat of the 
foreign processor of frozen mangos, a person can be nominated for both 
the foreign processor of frozen mangos and foreign producer of fresh 
mango positions. For example, an individual can be nominated for a 
frozen importer seat, if the individual had imported 200,000 pounds or 
more of frozen mangos in a year. The same individual could also submit 
their name to the Board for a fresh importer seat, if they imported 
500,000 or more of fresh mangos.
    As stated in the Nomination and Appointment section of the 
proposal, the Board staff will solicit the names of frozen mango 
importers who import 200,000 pounds or more of frozen mangos annually 
for a frozen mango importer seat and the voting will be conducted by 
mail ballot. For the mail ballot, all eligible frozen mango importers 
will have the opportunity to vote for the candidates who are nominated 
for the two importer of frozen mango seats on the Board. For the 
foreign mango processor seat, nomination of the foreign processor for 
the frozen mangos seat will be solicited from foreign mango 
organizations and foreign processors. The Board staff will submit the 
names to the Secretary for selection of appointment. The candidate will 
only be selected for one seat on the Board. The candidate must be a 
member of the industry sector that they were appointed by the Secretary 
to represent.
    The same commenter stated the Board membership revision should 
clarify whether the Board can be comprised of more than one individual 
from the same or sister entities on behalf of fresh or the frozen 
operations. The current program allows for members to serve on the 
Board from the same business entity or related entity for fresh mangos. 
The same can be afforded to the frozen mango seats if the candidates 
meet the qualification requirements outlined in the Nomination and 
Appointments section of the proposed rule.
    Also, the same commenter stated it is in the best interest of the 
entire mango industry to have more marketing support for frozen mangos 
than fresh to increase demand. It is the commenter's opinion that this 
will generate higher overall value that will benefit mango growers, as 
well as both the fresh and frozen mango business. The allocation of the 
Board revenues will be the decision of the Board membership that would 
consist of both frozen and fresh mango industry stakeholders. The 
Board's annual budget recommendation will be submitted to USDA for 
approval.

Comments With No Position

    One commenter wanted a clarification of a statement written in the 
Regulatory Flexibility Act section that reads as follows: ``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.'' The same commenter stated the above could imply two 
scenarios, and the commenter is unsure which scenario is correct. 
Scenario (i): There are five first handlers of fresh mangos, most of 
which are small (handled less than $7.5 million worth of mangos in 
2016). Scenario (ii): Because the majority of worldwide first handlers 
are small, the AMS only recognizes five handlers who handled more than 
$7.5 million worth of mangos in 2016. Scenario (i) correctly states the 
intended meaning of the quoted language from the proposed rule.
    One commenter requested a 30-day comment period extension to allow 
the frozen mango industry sufficient time to address their concerns 
about the proposal. The Department granted the commenter's request for 
a 30-day extension. The comment period had originally closed on June 5, 
2018, after a 60-day comment period, but it was extended by a notice 
published on June 12, 2018, that announced the 30-day comment period 
would end on August 13, 2018. USDA allowed interested parties a total 
of 90 days to comment on the proposal that was published on April 6, 
2018, in the Federal Register.
    USDA has considered all comments received and has not made any 
changes based on those comments.
    After consideration of all relevant matters presented, including 
the information and recommendation submitted by the Board and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, is consistent with and will effectuate the 
purposes of the 1996 Act.
    As stated previously, section 518(d) of the 1996 Act states that 
the Secretary may conduct a referendum at any time to determine whether 
the continuation, suspension, or termination or the order or a 
provision of a program is favored by persons eligible to vote under 
that program. Once this final rule becomes effective, USDA will conduct 
a referendum to allow importers and handlers of fresh mangos and 
importers of frozen mangos to vote on whether they approve of the 
continuation of the program with the inclusion of frozen mangos. The 
results of the referendum will be published in a press release.

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 
amended as follows:

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

0
 1. The authority citation for 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 section 1206.8 by revising the section heading, redesignating 
the introductory text as paragraph (a) introductory text and paragraphs 
(1) and (2) as paragraphs (a)(1) and (2), respectively, and by adding 
paragraph (b).
    The addition reads 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:

[[Page 5345]]

Sec.  1206.9  Importer.

    Importer means any person importing mangos 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.

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, and 
in Sec.  1206.30, revise paragraphs (a) and (b) to read as follows:

National Mango Board


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), add new paragraph (h), and add paragraphs (i) and (j).
    The revision and additions 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) and (d)(1) through (3) and 
add paragraph (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 0804.50.4045, 0804.50.4055, 0804.50.6045, and 
0804.50.6055 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 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

[[Page 5346]]

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 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: February 14, 2019.
Bruce Summers,
Administrator.
[FR Doc. 2019-02859 Filed 2-20-19; 8:45 am]
 BILLING CODE 3410-02-P