[Federal Register: January 16, 2009 (Volume 74, Number = 11)] [Rules and Regulations] =20 [Page 2806-2809] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr16ja09-5] =20 ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Parts 944, 980, and 999 [Docket No. AMS-FV-07-0110; FV07-944/980/999-1 FR] =20 Fruit, Vegetable, and Specialty Crops--Import Regulations;=20 Proposed Revision to Reporting Requirements AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This rule revises the reporting requirements for imports of=20 commodities regulated under section 608(e) (hereinafter referred to as=20 ``8e'') of the Agricultural Marketing Agreement Act of 1937. These=20 changes require that the inspection certificates generated for each lot=20 of such commodities include the entry number from the U.S. Customs and=20 Border Protection (CBP or Customs) documentation that accompanies that=20 lot. The changes also require that importers of raisins, dates, and=20 dried prunes report products exempt from 8e import regulations on AMS=20 Form FV-6--``Importers' Exempt Commodity Form,'' which is the same form=20 that is currently used by importers of all other commodities exempt=20 from 8e import regulations. These changes are intended to streamline=20 the tracking of imported products and provide uniformity in electronic=20 reporting systems used by the industries and the Department of=20 Agriculture (USDA). DATES: Effective Date: February 17, 2009. FOR FURTHER INFORMATION CONTACT: Rick Lower or Jared Burnett, Marketing=20 Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA,=20 1400 Independence Avenue, SW., Stop 0237, Washington, DC 20250-0237;=20 Telephone: (202) 720-2491, Fax: (202) 720-8938, or E-mail:=20 Richard.Lower@usda.gov or = JaredK.Burnett@usda.gov. Small businesses may request information on complying with this=20 regulation by contacting Jay Guerber, Marketing Order Administration=20 Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence=20 Avenue, SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202)=20 720-2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov. SUPPLEMENTARY INFORMATION: This final rule is issued under section 8e=20 of the Agricultural Marketing Agreement Act of 1937, as amended (7=20 U.S.C. 601-674), hereinafter referred to as the ``Act.'' Section 8e=20 provides that whenever certain commodities are regulated under Federal=20 marketing orders, imports of those commodities into the United States=20 are prohibited unless they meet the same or comparable grade, size,=20 quality, or maturity requirements as those in effect for the=20 domestically produced commodities. To ensure that these requirements=20 are met, the Act also authorizes USDA to perform inspections and issue=20 inspection certificates for such imported commodities. Parts 944, 980, and 999 of title 7 of the Code of Federal=20 Regulations (CFR) specify the information that should be included on=20 each inspection certificate issued for regulated imports of fruits,=20 vegetables, and specialty crops, respectively. Part 999 further=20 specifies which forms importers should use to report to USDA and CBP=20 imports of raisins, dates, and dried prunes that may be exempt from=20 other 8e requirements. Exempt commodities are those which may be=20 imported for purposes such as processing, donation to charitable=20 organizations, or animal feed. USDA is issuing this rule in conformance with Executive Order=20 12866. There are no administrative procedures which must be exhausted=20 prior to any judicial challenge to the provisions of import regulations=20 issued under section 8e of the Act. Customs Entry Number Under the import regulations contained in parts 944, 980, and 999,=20 inspection certificates issued for imports of certain fruits,=20 vegetables, and specialty crops, respectively, must include specific=20 information about the lot being inspected. In addition to stating=20 whether the lot meets the import requirements, such information as the=20 date and place of inspection; the name of the applicant; and the=20 variety, quantity, and identifying marks of the lot inspected are=20 required. Previously, many inspectors have noted the customs entry number=20 pertaining to the lot being inspected, which is taken from the Customs=20 documentation accompanying that lot, in the ``Remarks'' section or=20 elsewhere on the inspection certificate. The unique entry number is=20 generated for each lot by CBP, and may be found on any one of the=20 various forms used to report imported lots of fruit, vegetable, and=20 specialty crop commodities. USDA has found that the entry number=20 provides an efficient way to identify individual lots of commodities=20 and to cross-reference all the documents pertaining to each lot. If,=20 for instance, a certain lot fails to meet [[Page 2807]] import regulations when first presented, it may be reworked and=20 presented for inspection a second time. The entry number is used to tie=20 both the original and any succeeding inspections to that lot.=20 Additionally, if a lot that fails to meet import requirements is=20 diverted to another market or destroyed, USDA and the importer can use=20 the entry number to track that lot through the process. This final rule makes the inclusion of the Customs entry number on=20 all pertinent inspection certificates mandatory. Including the entry=20 number on inspection certificates is intended to allow importers to=20 more easily demonstrate that the requirements have been met for each=20 lot of regulated commodity imported into the United States. This action=20 should also allow USDA to more easily track imported lots. Form FV-6 Under the import regulations contained in parts 944, 980, and 999,=20 individual lots of some imported commodities may be exempt from 8e=20 regulations if they are to be used in the processing of other products=20 or consumed through some other exempted use, such as by charitable=20 organizations or as animal feed. However, importers and receivers are=20 still required to declare their intent to import those commodities into=20 the United States to CBP and USDA. Most commodities are reported using=20 the generic Form FV-6--``Importer's Exempt Commodity Form.'' Exempt imports of two commodities--raisins and dates--were=20 previously reported on forms unique to those commodities. Exempt=20 imports of raisins were reported on Raisin Form No. 1--``Raisins-- Section 8e Entry Declaration'' and Raisin Form No. 2--``Raisins-- Section 8e Certification of Processor of Reseller.'' Exempt imports of=20 dates were reported on Date Form No. 1--``Dates--Section 8e Entry=20 Declaration'' and Date Form No. 2--``Dates--Section 8e Certification of=20 Processor of Reseller.'' The 8e regulations for dried prunes were indefinitely suspended on=20 May 27, 2005. The suspended language in Sec. 999.200 specified that=20 exempt imports of dried prunes be reported on Prune Form No. 1-- ``Prunes--Section 8e Entry Declaration'' and Prune Form No. 2-- ``Prunes--Section 8e Certification of Processor of Reseller.'' This rule changes the reporting requirements for imported lots of=20 raisins, dates, and dried prunes that are exempt from other 8e=20 regulations by replacing the commodity-specific import declaration=20 forms described above with the generic Form FV-6. The information=20 collected on Raisin, Date, and Prune Forms 1 and 2 is the same as that=20 collected for other commodities reported on Form FV-6. In its=20 conversion to the use of electronic reporting systems, USDA is adopting=20 the use of an electronic Form FV-6 to monitor imports of regulated=20 commodities that are exempt from the import requirements. Replacing the=20 existing raisin, date, and dried prune Forms 1 and 2 with the generic=20 Form FV-6 will enable USDA to streamline its operations by collecting=20 information electronically and eliminating unnecessary forms. Final Regulatory Flexibility Analysis Pursuant to the requirements set forth in the Regulatory=20 Flexibility Act (RFA), AMS has considered the economic impact of this=20 rule on small entities. Accordingly, AMS has prepared this final=20 regulatory flexibility analysis. The purpose of the RFA is to fit regulatory actions to the scale of=20 business subject to such actions in order that small businesses will=20 not be unduly or disproportionately burdened. Marketing orders issued=20 pursuant to the Act, and rules issued thereunder, are unique in that=20 they are brought about through group action of essentially small=20 entities acting on their own behalf. Import regulations issued under=20 the Act are based on those established under Federal marketing orders. Small agricultural business firms, which include importers and=20 receivers of these commodities, have been defined by the Small Business=20 Administration (13 CFR 121.601) as those having annual receipts of less=20 than $6,500,000. It is likely that the majority of these importers and=20 receivers may be classified as small entities. This rule revises the reporting requirements for imports of=20 commodities regulated under section 8e by requiring that the entry=20 number from the CBP documentation that accompanies each shipment is=20 included on all inspection certificates pertaining to that lot.=20 Specifically, regulations under part 944 pertaining to imports of=20 avocados, grapefruit, table grapes, kiwifruit, oranges, fresh prunes=20 (plums), and olives; part 980 pertaining to Irish potatoes, onions, and=20 tomatoes; and part 999 pertaining to dates, walnuts, dried prunes,=20 raisins, and filberts (hazelnuts) are revised. Requiring that the Customs entry number be included on the=20 inspection certificates should have very little impact on importers or=20 receivers. The Customs documentation containing the entry number=20 assigned to each shipment normally accompanies the shipment and should=20 be available at the time of inspection. The inspector will note the=20 entry number on the inspection certificate. This is already being done=20 by many inspectors. The inspection certificate is completed by Federal=20 or Federal-State employees. Therefore, there is no regulatory burden on=20 small entities. This action further modifies part 999 by requiring that importers=20 and receivers of raisins, dates, and dried prunes report products=20 exempt from 8e import regulations on Form FV-6--``Importers' Exempt=20 Commodity Form,'' instead of the commodity-specific forms previously=20 prescribed for those shipments. Form FV-6 is the same form that is=20 currently used by importers and receivers to report exempted shipments=20 of all other section 8e commodities. There are an estimated 329=20 importers and receivers of all exempt commodities. These changes are=20 intended to streamline the tracking of imported products and provide=20 uniformity in electronic reporting systems used by the industries and=20 USDA. It is estimated that 5 importers and 5 receivers of imported=20 raisins for processing, and 5 importers and 10 receivers of imported=20 dates for processing, will be required to replace Raisin and Date Forms=20 No. 1 and 2 with Form FV-6 as a result of this rule. As mentioned=20 above, the domestic order regulations for dried prunes have been=20 suspended. Therefore, the section 8e regulations for imported dried=20 prunes are also suspended. It is unknown how many dried prune importers=20 and receivers would be affected by this rule if the suspension is=20 lifted. Replacing Raisin, Date, and Prune Forms 1 & 2 with the generic = Form=20 FV-6 will eliminate the need to stock various commodity-specific forms.=20 Use of an electronic Form FV-6 should further improve business=20 efficiency for those required to file the reports as well as for USDA. Raisin, Date, and Prune Forms No. 1 and 2 were previously approved=20 by the Office of Management and Budget (OMB) under OMB No. 0581-0178,=20 ``Vegetable and Specialty Crop Marketing Orders'' for 48.5 burden=20 hours. Form FV-6 is currently approved by OMB under OMB No. 0581-0167,=20 ``Specified Commodities Imported into the United States Exempt from=20 Import Requirements.'' This rule removes 48.5 burden hours from OMB No.=20 0581-0178, and transfers burden to OMB No. 0581-0167. This information=20 collection has been submitted to OMB for approval. [[Page 2808]] AMS is committed to complying with the E-Government Act, to promote=20 the use of the Internet and other information technologies to provide=20 increased opportunities for citizen access to Government information=20 and services, and for other purposes. Further, AMS is committed to=20 compliance with the Government Paperwork Elimination Act, which=20 requires government agencies in general to provide the public with the=20 option of submitting information or transacting business electronically=20 to the maximum extent possible. USDA has not identified any relevant Federal rules that duplicate,=20 overlap or conflict with this rule. As with all Federal marketing order=20 programs, reports and forms are periodically reviewed to reduce=20 information requirements and duplication by the industry and public=20 sector agencies. A proposed rule concerning this action was published in the Federal=20 Register on May 30, 2008 (73 FR 31036). The proposal was made available=20 through the Internet by USDA and the Office of the Federal Register. A=20 60-day comment period ending July, 29, 2008, was provided for=20 interested persons to submit comments on this proposed rule, including=20 the regulatory and informational impacts of this action on small=20 businesses. No comments were received. A conforming change to the introductory text of Sec. 999.1(e) was=20 inadvertently omitted from the Federal Register publication of the=20 proposed rule. In that text, the reference to Date Form No. 1 should=20 have been changed to refer to Form FV-6. Accordingly, that modification=20 to the proposed rule is made in this final rule. Additional=20 miscellaneous changes are also made for clarity. A small business guide on complying with fruit, vegetable, and=20 specialty crop marketing agreements and orders may be viewed at: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=3DleavingFR.htm= l&log=3Dlinklog&to=3Dhttp://www.ams.usda.gov/fv/moab.html. = Any questions about the compliance=20 guide should be sent to Jay Guerber at the previously mentioned address=20 in the FOR FURTHER INFORMATION CONTACT section. After consideration of all relevant matters presented, it is hereby=20 found that this rule, as hereinafter set forth, will tend to effectuate=20 the declared policy of the Act. List of Subjects 7 CFR Part 944 Avocados, Food grades and standards, Grapefruit, Grapes, Imports,=20 Kiwifruit, Limes, Olives, Oranges. 7 CFR Part 980 Food grades and standards, Imports, Marketing agreements, Onions,=20 Potatoes, Tomatoes. 7 CFR Part 999 Dates, Filberts, Food grades and standards, Imports, Nuts, Prunes,=20 Raisins, Reporting and recordkeeping requirements, Walnuts. 0 For the reasons set forth above, 7 CFR parts 944, 980, and 999 are=20 amended as follows: 0 1. The authority citation for 7 CFR parts 944, 980, and 999 continue to=20 read as follows: Authority: 7 U.S.C. 601-674. PART 944--FRUITS; IMPORT REGULATIONS 0 2. In Sec. 944.400, amend paragraph (d) by redesignating paragraphs=20 (d)(3) through (d)(7) as paragraphs (d)(4) through (d)(8) and adding a=20 new paragraph (d)(3) to read as follows: Sec. 944.400 Designated inspection services and procedure for=20 obtaining inspection and certification of imported avocados,=20 grapefruit, kiwifruit, oranges, prune variety plums (fresh prunes), and=20 table grapes regulated under section 8e of the Agricultural Marketing=20 Agreement Act of 1937, as amended. * * * * * (d) * * * (3) The Customs entry number pertaining to the lot or shipment=20 covered by the certificate; * * * * * 0 3. In Sec. 944.401, amend paragraph (i), by redesignating paragraphs=20 (i)(3) through (i)(8) as paragraphs (i)(4) through (i)(9) and adding a=20 new paragraph (i)(3) to read as follows: Sec. 944.401 Olive Regulation 1. * * * * * (i) * * * (3) The Customs entry number pertaining to the lot or shipment=20 covered by the certificate; * * * * * PART 980--VEGETABLES; IMPORT REGULATIONS 0 4. In Sec. 980.1, amend paragraph (g)(4), by redesignating paragraphs=20 (g)(4)(iii) through (g)(4)(vii) as paragraphs (g)(4)(iv) through=20 (g)(4)(viii) and adding a new paragraph (g)(4)(iii) to read as follows: Sec. 980.1 Import regulations; Irish potatoes. * * * * * (g) * * * (4) * * * (iii) The Customs entry number pertaining to the lot or shipment=20 covered by the certificate; * * * * * 0 5. In Sec. 980.117, amend paragraph (f)(5), by redesignating=20 paragraphs (f)(5)(iii) through (f)(5)(vii) as paragraphs (f)(5)(iv)=20 through (f)(5)(viii) and adding a new paragraph (f)(5)(iii) to read as=20 follows: Sec. 980.117 Import regulations; onions. * * * * * (f) * * * (5) * * * (iii) The Customs entry number pertaining to the lot or shipment=20 covered by the certificate; * * * * * 0 6. In Sec. 980.212, amend paragraph (f)(5), by redesignating=20 paragraphs (f)(5)(iii) through (f)(5)(vii) as paragraphs (f)(5)(iv)=20 through (f)(5)(viii) and adding a new paragraph (f)(5)(iii) to read as=20 follows: Sec. 980.212 Import regulations; tomatoes. * * * * * (f) * * * (5) * * * (iii) The Customs entry number pertaining to the lot or shipment=20 covered by the certificate; PART 999--SPECIALTY CROPS; IMPORT REGULATIONS Sec. 999.1 [Amended] 0 7. Amend Sec. 999.1 by: 0 A. Redesignating paragraphs (c)(2)(iii) through (c)(2)(v) as paragraphs=20 (c)(2)(iv) through (c)(2)(vi) and adding a new paragraph (c)(2)(iii). 0 B. Revising the introductory text of paragraph (e). 0 C. Removing the phrase ``(c)(2)(iv)'' in paragraph (e)(1) and adding=20 the phrase ``(c)(2)(v)'' in its place. 0 D. Revising paragraph (e)(2). 0 E. Revising paragraph (e)(3). 0 F. Removing the phrase ``Date Form No. 2'' in paragraph (e)(4) and=20 adding the phrase ``Form FV-6'' in its place. 0 G. Removing the phrase ``Date Form No. 2 `Dates for Processing--Section=20 8e Certification of Processor or Reseller' '' in paragraph (f) and=20 adding the phrase ``Form FV-6--`Importer's Exempt Commodity Form' '' in=20 its place. 0 H. Removing the phrase ``Date Form No. 1 `Dates--Section 8e Entry=20 Declaration' '', in the first sentence in paragraph (g), and adding the=20 phrase ``Form FV-6--`Importer's Exempt Commodity Form' '' in its place. 0 I. Removing the phrase ``Date Form No. 1'', from the second sentence in=20 paragraph (g), and adding the phrase ``Form FV-6'' in its place. [[Page 2809]] 0 The additions and revisions read as follows: Sec. 999.1 Regulation governing the importation of dates. * * * * * (c) * * * (2) * * * (iii) The Customs entry number pertaining to the lot or shipment=20 covered by the certificate; * * * (e) Importation. No person may import dates into the United States=20 unless he or she first files with the Collector of Customs at the port=20 at which the Customs entry is filed, as a condition of each such=20 importation, either an inspection certificate or an executed Form FV- 6--`Importer's Exempt Commodity Form.' (1) * * * (2) Dates for processing and dates prepared or preserved-- importation. Any person may import dates for processing and dates=20 prepared or preserved exempt from the grade, inspection, and=20 certification requirements of this section if the importer first files=20 as a condition of such importation an executed Form FV-6--`Importer's=20 Exempt Commodity Form.' The importer shall promptly transmit a copy of=20 the executed Form FV-6 to the Fruit and Vegetable Division. (3) Dates for processing--Sale by importer. No importer or other=20 person may import, sell, or use any dates for processing other than for=20 use as set forth in paragraph (a)(4) of this section or as otherwise=20 permitted by this section. Each importer of dates for processing shall=20 obtain from each purchaser, no later than the time of delivery to such=20 purchaser, and file with the Fruit and Vegetable Division not later=20 than the fifth day of the month following the month in which the dates=20 were delivered, an executed Form FV-6. * * * * * 0 8. In Sec. 999.100, amend paragraph (c)(2), by redesignating=20 paragraphs (c)(2)(iv) and (c)(2)(v) as paragraphs (c)(2)(v) and=20 (c)(2)(vi), respectively, and adding a new paragraph (c)(2)(iv) to read=20 as follows: Sec. 999.100 Regulations governing imports of walnuts. * * * * * (c) * * * (2) * * * (iv) The Customs entry number pertaining to the lot or shipment=20 covered by the certificate; * * * * * Sec. 999.200 [Amended] 0 9. In Sec. 999.200, lift the suspension of May 27, 2005, and amend the=20 section as follows: 0 A. Remove the phrase ``Prune Form No. 1 `Prunes--Section 8e Entry=20 Declaration' '' in paragraph (b)(5), and add in its place the phrase=20 ``Form FV-6--`Importer's Exempt Commodity Form.' '' 0 B. Redesignate paragraphs (c)(2)(iii) through (c)(2)(v) as paragraphs=20 (c)(2)(iv) through (c)(2)(vi) and add a new paragraph (c)(2)(iii). 0 C. Remove the phrase `` `Prunes--Section 8e Entry Declaration,'=20 prescribed in paragraph (e)(2) of this section as Prune Form No. 1'' in=20 the second sentence of paragraph (e)(1), and add the phrase ``Form FV- 6--`Importer's Exempt Commodity Form;' '' in its place; 0 D. Remove the phrase `` `Prunes--Section 8e Certification of Processor=20 or Reseller,' prescribed in paragraph (e)(3) of this section as Prune=20 Form No. 2'' in the fifth sentence of paragraph (e)(1), and add the=20 phrase ``Form FV-6--`Importer's Exempt Commodity Form' '' in its place. 0 E. Remove paragraphs (e)(2) and (e)(3). 0 F. Redesignate paragraph (e)(4) as paragraph (e)(2). 0 G. Revise newly designated paragraph (e)(2). 0 The additions and revisions read as follows: Sec. 999.200 Regulation governing the importation of prunes. * * * * * (c) * * * (2) * * * (iii) The Customs entry number pertaining to the lot or shipment=20 covered by the certificate; * * * * * (e) * * * (2) Manufacturing Grade Substandard Prune--sale by other than=20 importer. Each wholesaler or other reseller of manufacturing grade=20 substandard prunes should, for his or her protection, obtain from each=20 purchaser and hold in his or her files an executed Form FV-6-- `Importer's Exempt Commodity Form' covering each sale during the=20 calendar year. * * * * * Sec. 999.200 [Suspended] 0 10. Suspend Sec. 999.200 indefinitely. Sec. 999.300 [Amended] 0 11. Amend Sec. 999.300 as follows: 0 A. Redesignate paragraph (c)(2)(iv) through (c)(2)(vi) as paragraphs=20 (c)(2)(v) through (c)(2)(vii) and add a new paragraph (c)(2)(iv). 0 B. Remove the phrase `` `Raisins--Section 8e Entry Declaration'=20 prescribed in paragraph (e)(2)(i) of this section as `Raisin Form No.=20 1' '' in the second sentence of paragraph (e)(2), and add the phrase=20 ``Form FV-6--Importer's Exempt Commodity Form'' in its place. 0 C. Remove the phrase `` `Raisins--Section 8e Certification of Processor=20 or Reseller,' prescribed in paragraph (e)(2)(ii) of this section as=20 `Raisin Form No. 2' '' in the fifth sentence of paragraph (e)(2), and=20 add the phrase ``Form FV-6'' in its place. 0 D. Remove the phrase ``Raisin Form No. 2'' in the seventh sentence of=20 paragraph (e)(2), and add the phrase ``Form FV-6'' in its place. 0 E. Remove paragraphs (e)(2)(i) and (e)(2)(ii). 0 The addition reads as follows: Sec. 999.300 Regulation governing importation of raisins. * * * * * (c) * * * (2) * * * (iv) The Customs entry number pertaining to the lot or shipment=20 covered by the certificate; * * * * * 0 12. In Sec. 999.400, amend paragraph (c)(3) by redesignating=20 paragraphs (c)(3)(iv) through (c)(3)(vi) as paragraphs (c)(3)(v)=20 through (c)(3)(vii) and adding a new paragraph (c)(3)(iv) to read as=20 follows: Sec. 999.400 Regulation governing the importation of filberts. * * * * * (c) * * * (3) * * * (iv) The Customs entry number pertaining to the lot or shipment=20 covered by the certificate; * * * * * Dated: January 13, 2009. James E. Link, Administrator, Agricultural Marketing Service. [FR Doc. E9-1008 Filed 1-15-09; 8:45 am] BILLING CODE 3410-02-P