From: Subject: FR Doc E8-19871 Date: Thu, 28 Aug 2008 11:35:41 -0400 MIME-Version: 1.0 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://edocket.access.gpo.gov/2008/E8-19871.htm X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.3198 FR Doc E8-19871 
[Federal Register: August 28, 2008 (Volume 73, Number =
168)]
[Proposed Rules]              =20
[Page 50732-50738]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28au08-18]                        =20

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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of=20
the proposed issuance of rules and regulations. The purpose of these=20
notices is to give interested persons an opportunity to participate in=20
the rule making prior to the adoption of the final rules.

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[[Page 50732]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Parts 305 and 319

[Docket No. APHIS-2007-0115]
RIN 0579-AC83

=20
Importation of Sweet Oranges and Grapefruit From Chile

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: We are proposing to amend the fruits and vegetables=20
regulations to allow the importation, under certain conditions, of=20
sweet oranges and grapefruit from Chile into the continental United=20
States. Based on the evidence in a recent pest risk analysis, we=20
believe these articles can be safely imported from all provinces of=20
Chile, provided certain conditions are met. This action would provide=20
for the importation of sweet oranges and grapefruit from Chile into the=20
continental United States while continuing to protect the United States=20
against the introduction of plant pests.

DATES: We will consider all comments that we receive on or before=20
October 27, 2008.

ADDRESSES: You may submit comments by either of the following methods:
     Federal eRulemaking Portal: Go to http://frwebga=
te.access.gpo.gov/cgi-bin/leaving.cgi?from=3DleavingFR.html&log=3Dlin=
klog&to=3Dhttp://www.regulations.gov/fdmspublic/component/main?main=3D=
DocketDetail%26d=3DAPHIS-2007-0115 to submit or view comments and=20
to view supporting and related materials available electronically.
     Postal Mail/Commercial Delivery: Please send two copies of=20
your comment to Docket No. APHIS-2007-0115, Regulatory Analysis and=20
Development, PPD, APHIS, Station 3A-03.8, 4700 River Road Unit 118,=20
Riverdale, MD 20737-1238. Please state that your comment refers to=20
Docket No. APHIS-2007-0115.
    Reading Room: You may read any comments that we receive on this=20
docket in our reading room. The reading room is located in room 1141 of=20
the USDA South Building, 14th Street and Independence Avenue, SW.,=20
Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m.,=20
Monday through Friday, except holidays. To be sure someone is there to=20
help you, please call (202) 690-2817 before coming.
    Other Information: Additional information about APHIS and its=20
programs is available on the Internet at http://frw=
ebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=3DleavingFR.html&log=3D=
linklog&to=3Dhttp://www.aphis.usda.gov.

FOR FURTHER INFORMATION CONTACT: Mr. Alex Belano, Import Specialist,=20
Commodity Import Analysis and Operation Staff, PPQ, APHIS, 4700 River=20
Road, Unit 133, Riverdale, MD 20737-1231; (301) 734-5333.

SUPPLEMENTARY INFORMATION:

Background

    The regulations in ``Subpart-Fruits and Vegetables'' (7 CFR 319.56-
1 through 319.56-47, referred to below as the regulations), prohibit or=20
restrict the importation of fruits and vegetables into the United=20
States from certain parts of the world to prevent the introduction and=20
dissemination of plant pests. The Government of the Republic of Chile=20
has requested that the Animal and Plant Health Inspection Service=20
(APHIS) amend the regulations to allow the importation into United=20
States of sweet oranges and grapefruit from Chile under certain=20
conditions. Those conditions would be the same as those which currently=20
apply to clementines, mandarins, and tangerines from Chile and can be=20
found in Sec.  319.56-38 of the regulations.
    In 2006, APHIS received a request from the Government of Chile to=20
allow the importation of sweet oranges (Citrus sinensis (L.) Osbeck)=20
and grapefruit (Citrus paradisi Macfad.) from Chile into the United=20
States. In response to this request, we prepared a pest risk assessment=20
to evaluate the pest risks associated with the importation of those two=20
varieties of citrus from Chile into the continental United States. As=20
noted in that document, we identified two quarantine pests, Ceratatis=20
capitata, a fruit fly more commonly known as the Mediterranean fruit=20
fly (Medfly), and Brevipalpus chilensis (Chilean false red mite), that=20
could follow the pathway of commercial shipments of fresh sweet oranges=20
and grapefruit. In addition to the pest risk assessment, we prepared a=20
risk management document in which we identified several mitigations=20
that could be used to address the risks posed by the two pests of=20
concern. Those measures include cold treatment, methyl bromide=20
fumigation, and an existing systems approach for other citrus varieties=20
from Chile. Copies of the pest risk assessment and risk management=20
document may be obtained from the person listed under FOR FURTHER=20
INFORMATION CONTACT or viewed on the Regulations.gov Web site (see=20
ADDRESSES above for instructions for accessing Regulations.gov).
    Based on the conclusions in the pest risk assessment and the=20
accompanying risk management document, we have determined that sweet=20
oranges and grapefruit can be safely imported from all provinces of=20
Chile, provided certain conditions are met. As stated previously in=20
this document, those conditions would be the same as those which=20
currently apply to clementines, mandarins, and tangerines from Chile,=20
which have proven effective at eliminating pests associated with those=20
commodities since 2004. Therefore, we are proposing to add sweet=20
oranges and grapefruit to the list of fruit that can be imported under=20
Sec.  319.56-38. The details of those requirements are discussed in the=20
paragraphs below.

Permit

    We would require that a specific written permit be issued in=20
accordance with Sec.  319.56-3 to import sweet oranges and grapefruit=20
from Chile. Importers would be required to apply to APHIS' Plant=20
Protection and Quarantine (PPQ) program for a permit in advance of the=20
proposed shipments, stating in the application the country or locality=20
of origin of the fruits, the port of first arrival, the name and=20
address of the importer in the United States, and the identity and=20
quantity of the fruit. If APHIS approves the permit application, a=20
permit would be issued specifying the conditions applicable to the=20
importation of the fruit. In accordance with Sec.  319.56-3, a permit,=20
once issued, could be amended or withdrawn by the Administrator at any=20
time if it is determined that the importation of the fruit presents a=20
risk.

[[Page 50733]]

Cold Treatment

    One of the two pests of concern identified in the pest risk=20
assessment document is Medfly. To address the risk presented by this=20
pest, we are proposing to require sweet oranges and grapefruit undergo=20
cold treatment if the fruit is grown in areas of Chile where Medfly is=20
known to occur, which include the province of Arica. Consignments of=20
sweet oranges and grapefruit from these areas would require cold=20
treatment in accordance with our phytosanitary treatments regulations=20
in 7 CFR part 305 and would also have to be accompanied by=20
documentation indicating that the cold treatment was initiated in=20
Chile.

Importation Options

    The second pest of concern identified in the pest risk analysis, B.=20
chilensis, is a mite that is not easily detected through visual=20
inspection. To address the risk presented by this pest, we would=20
require the use of one of two options, either the application of a=20
systems approach or the use of fumigation. The systems approach would=20
allow for the importation of the fruit without fumigation, which, in=20
some instances, may be a more expensive option. These options are=20
discussed in detail in the following paragraphs.

Systems Approach

    The first option being proposed by APHIS under which sweet oranges=20
and grapefruit could be imported into the United States from Chile is=20
preclearance of the commodities using a systems approach to ensure=20
phytosanitary security. Under a systems approach, APHIS defines a set=20
of phytosanitary procedures, at least two of which have an independent=20
effect in mitigating pest risk associated with the movement of=20
commodities, whereby fruits and vegetables may be imported into the=20
United States from countries that are not free of certain plant pests.=20
The systems approach in this case would consist of a series of=20
complementary phytosanitary measures that include: Low prevalence=20
production site certification, post-harvest processing, and=20
phytosanitary inspection. Each of these measures is explained in detail=20
in the following paragraphs. Once the fruit have passed through this=20
series of pest mitigation measures, inspectors of the national plant=20
protection organization (NPPO) of Chile would issue a phytosanitary=20
certificate stating that the fruit has been inspected and found free of=20
any evidence of plant pests. A phytosanitary certificate would have to=20
accompany each consignment of sweet oranges or grapefruit offered for=20
importation into the United States from Chile.

Low Prevalence Production Site Certification

    The pest risk management document outlines a series of=20
phytosanitary measures whose implementation would mitigate the=20
potential risk of introducing quarantine pests into the United States=20
through the importation of sweet oranges and grapefruit from Chile. In=20
order to be eligible to participate in the systems approach, each=20
production site would be required to implement the mitigation measures=20
discussed in the pest risk management document. The first of these=20
measures, low prevalence production site certification, would require=20
each production site to register annually with the NPPO of Chile with=20
information including: (1) Production site name, (2) grower, (3)=20
municipality, (4) province, (5) region, (6) area planted to each=20
species, (7) number of plants/hectares/species, and (8) approximate=20
date of harvest. This information would be used to monitor the=20
phytosanitary health of the production site and to track the origin of=20
consignments. These production sites would then participate in a=20
program of certification of low prevalence, which would be carried out=20
by the NPPO of Chile. A random sample of fruit would be collected from=20
each registered production site 1 to 30 days prior to harvest. The=20
fruit from each sample would undergo a washing process that allows for=20
the detection of mites. This same process has proven to be effective in=20
the detection of B. chilensis in clementines, mandarins, and tangerines=20
from Chile since 2004.\1\ The washing process involves placing the=20
fruit and pedicels in sieves, sprinkling them with a liquid soap and=20
water solution, washing them with water at high pressure, washing them=20
with water at low pressure, and then repeating the process. Once the=20
fruit has been washed thoroughly, all contents of the sieves, which=20
collect everything that is washed off of the fruit, are put on a Petri=20
dish and analyzed for the presence of mites.
-------------------------------------------------------------------------=
--

    \1\ See table 1 of the risk management document.
-------------------------------------------------------------------------=
--

    Only production sites certified by the NPPO of Chile as low=20
prevalence would be eligible to export under this systems approach.=20
Under this systems approach, a random sample of fruit would be taken=20
from each production site. In order to qualify as a low prevalence=20
production site, a production site would be required to have no mites=20
detected in the fruit sampled. Each production site would have only one=20
opportunity per harvest season to qualify for the certification program=20
since the verification process would occur before the beginning of each=20
harvest season. Certification of low prevalence would be valid for one=20
harvest season only. The same certification of low prevalence program=20
is currently in use for clementines, mandarins, and tangerines imported=20
into the United States from Chile.

Post-Harvest Processing

    Once the production site has been certified as a low prevalence=20
production site, the fruit would be picked and would then undergo post-
harvest commercial processing. In the normal fruit packing process=20
already in place in Chile for other commodities, fruit undergoes the=20
following steps: (1) Washing, (2) rinsing in a chlorine bath with=20
brushing using bristle rollers, (3) rinsing with a hot water shower=20
with brushing using bristle rollers, (4) pre-drying at room=20
temperature, (5) waxing, and (6) drying with hot air.

Phytosanitary Inspection

    As the final stage in the systems approach, once the fruit has been=20
processed, each consignment, which would consist of one or more lots,=20
of fruit intended for export to the United States would be subject to a=20
phytosanitary inspection to verify the absence of B. chilensis and any=20
visibly detectable pests. Phytosanitary inspection would be conducted=20
at an APHIS-approved inspection site in Chile under the direction of=20
APHIS in conjunction with the NPPO of Chile.
    Sweet oranges and grapefruit presented for preclearance inspection=20
in Chile would be required to be identified in shipping documents=20
accompanying each lot of fruit that identify the packing shed where=20
they were processed and the production sites where they were produced;=20
we would require that this identity be maintained until the sweet=20
oranges or grapefruit were released for entry into the United States.
    A biometric sample of the boxes would be selected and the fruit=20
from these boxes would be visually inspected for quarantine pests. A=20
portion of the fruit would be washed and the collected filtrate would=20
be microscopically examined for B. chilensis.
    If one live B. chilensis s mite were found during phytosanitary=20
inspection, the entire consignment would have to be fumigated with=20
methyl bromide in order for the fruit to be eligible for export to the=20
United States. In addition, the production site of origin would be=20
suspended from the low prevalence certification program for the=20
remainder of the harvest season. During the term of its suspension, the=20
production site

[[Page 50734]]

could export fruit to the United States only if the fruit were=20
fumigated with methyl bromide, as outlined in the following section. A=20
suspended production site would have the opportunity to reenter the low=20
prevalence certification program prior to the next harvest season. As=20
noted previously, all production sites would have to requalify for the=20
program each year, regardless of their status at the end of the=20
preceding season.
    If, during preclearance inspection in Chile, inspectors were to=20
find evidence of any other plant pest for which an authorized treatment=20
in 7 CFR part 305 is available, fruit in the consignment would remain=20
eligible for export to the United States if the entire consignment were=20
treated for the pest in Chile under APHIS supervision. However, if a=20
quarantine pest were found for which no treatment authorized in 7 CFR=20
part 305 is available, the entire consignment would not be eligible for=20
export to the United States.
    Chile's NPPO would issue a phytosanitary certificate if no evidence=20
of pests was found. The phytosanitary certificate would have to contain=20
an additional declaration stating that the fruit in the consignment=20
meets the conditions of Sec.  319.56-38. Sweet oranges or grapefruit=20
inspected in Chile would, like all imported fruits and vegetables, be=20
subject to reinspection at the U.S. port of arrival as provided in=20
Sec.  319.56-3 of the regulations.

Fumigation

    Not all exporters may be able to utilize the systems approach as a=20
means for access to the U.S. market. As an alternative mitigation=20
measure, we are proposing to provide for the use of an approved APHIS=20
treatment for B. chilensis for sweet oranges and grapefruit from Chile.
    The treatment would be fumigation with methyl bromide at normal=20
atmospheric pressure in an APHIS-approved fumigation chamber or under a=20
tarpaulin in accordance with the following schedule, which is listed in=20
7 CFR part 305 as T104-a-1 and T101-n-2-1. These treatment schedules=20
are approved for spider mites, which is the group encompassing B.=20
chilensis. The required treatment period is 2 hours.

------------------------------------------------------------------------
                                                          Dosage--pounds
                                                             of methyl
                  Temperature ([deg]F)                      bromide per
                                                           1,000 ft \3\
------------------------------------------------------------------------
80 or above.............................................         1 \1/2\
70-79 (inclusive).......................................               2
60-69 (inclusive).......................................         2 \1/2\
50-59 (inclusive).......................................               3
------------------------------------------------------------------------

    APHIS inspectors would monitor the fumigation and prescribe such=20
safeguards as might be necessary for unloading, handling, and=20
transportation preparatory to fumigation. The final release of the=20
commodities for entry into the United States would be conditioned upon=20
compliance with prescribed safeguards and required treatment.=20
Consignments of sweet oranges and grapefruit from Chile that had been=20
fumigated would be subject to random inspection in Chile, as well as at=20
the port of arrival in accordance with Sec.  319.56-3.

Trust Fund Agreement

    We are proposing to require that sweet oranges and grapefruit from=20
Chile may be imported into the United States only if the NPPO of Chile=20
or a private export group has entered into a trust fund agreement with=20
APHIS in accordance with Sec.  319.56-6. Requiring the payment of costs=20
in advance is necessary to help defray the costs to APHIS of providing=20
inspection and treatment monitoring services in Chile.
    Section 319.56-6 of the regulations sets forth provisions for=20
establishing trust fund agreements to cover costs incurred by APHIS=20
when APHIS personnel must be physically present in an exporting country=20
or region to facilitate exports. Trust fund agreements require the NPPO=20
of an exporting country or the private export group to pay in advance=20
of each shipping season all costs that APHIS estimates it would incur=20
in providing inspection services and treatment monitoring in the=20
exporting country during each shipping season. These costs would=20
include administrative expenses and all other salaries (including=20
overtime and the Federal share of employee benefits), travel expenses=20
(including per diem expenses), and other incidental expenses incurred=20
by the inspectors in performing these services. The NPPO of an=20
exporting country or the private export group is required to deposit a=20
certified or cashier's check with APHIS for the amount of these costs,=20
as estimated by APHIS. If the deposit is not sufficient to meet all=20
costs incurred by APHIS, the agreement requires the NPPO of the=20
exporting country or the private export group to deposit a certified or=20
cashier's check with APHIS for the amount of the remaining costs, as=20
determined by APHIS, before APHIS would provide any more services=20
related to the inspection and treatment of the fruit or vegetable.=20
After a final audit at the conclusion of each shipping season, any=20
overpayment of funds is returned to the NPPO of the exporting country=20
or held on account until needed, at their option.

Miscellaneous Changes

    As noted previously, the current regulations in Sec.  319.56-38=20
provide for the importation of clementines, mandarins, and tangerines=20
from Chile into the United States. As defined in Sec.  319.56-2, the=20
term United States includes the 50 States, the District of Columbia,=20
and all U.S. territories and possessions. However, the pest risk=20
assessment we prepared for the rulemaking that established the=20
regulations in current Sec.  319.56-38 was limited in scope to the=20
continental United States and Hawaii. Therefore, to ensure that the=20
regulations are consistent with the pest risk assessment's scope, we=20
would amend the introductory text of Sec.  319.56-38 to specifically=20
state that clementines, mandarins, and tangerines may be imported from=20
Chile into the continental United States (including Alaska) and Hawaii=20
only.
    The regulations in current Sec.  319.56-38 provide that if=20
treatment is required, clementines, mandarins, and tangerines must be=20
cold treated or fumigated with methyl bromide in accordance with part=20
305. The table in Sec.  305.2(h)(2)(i) identifies treatment schedules=20
for fruits and vegetables from foreign localities for which there is an=20
approved treatment. When we amended the fruits and vegetables=20
regulations to provide for the importation of clementines, mandarins,=20
and tangerines, we neglected to add an entry for those commodities to=20
the table in Sec.  305.2(h)(2)(i). To correct this error, we propose to=20
amend the table in Sec.  305.2(h)(2)(i) to include entries for=20
clementines, mandarins, and tangerines from Chile and to specifically=20
identify the cold treatment and methyl bromide fumigation treatment=20
schedules that are approved for those commodities.

Executive Order 12866 and Regulatory Flexibility Act

    This proposed rule has been reviewed under Executive Order 12866.=20
The rule has been determined to be not significant for the purposes of=20
Executive Order 12866 and, therefore, has not been reviewed by the=20
Office of Management and Budget.
    We are proposing to amend the fruits and vegetables regulations to=20
allow the importation, under certain conditions, of sweet oranges and=20
grapefruit from Chile into the continental United States. Sweet oranges=20
and grapefruit would be imported under certain conditions that would=20
address the risks associated with the Medfly and B. chilensis.=20
Phytosanitary risks would be mitigated

[[Page 50735]]

using the same approach as is currently employed for the importation of=20
clementines, mandarins, and tangerines from Chile, as set forth in 7=20
CFR 319.56-38. Import requirements would include orchard control and=20
registration, low prevalence orchard certification, harvest timing,=20
post-harvest processing, phytosanitary inspections by both APHIS and=20
the Chilean NPPO, and, if necessary, approved cold treatment and/or=20
methyl bromide treatment in Chile or at the port of entry.
    The Regulatory Flexibility Act requires agencies to evaluate the=20
potential effects of their proposed and final rules on small=20
businesses, small organizations, and small governmental jurisdictions.=20
Section 603 of the Act requires an agency to prepare and make available=20
for public comment an initial regulatory flexibility analysis=20
describing the expected impact of a proposed rule on small entities,=20
unless the head of the agency certifies that the rule will not, if=20
promulgated, have a significant economic impact on a substantial number=20
of small entities. This analysis is in support of certification.

Sweet Orange and Grapefruit Production

    The United States is a major producer of citrus fruits. Chile is=20
not yet considered a major producer of citrus, especially when compared=20
to its neighbors such as Brazil, Uruguay, and Argentina. The major=20
world producers of fresh oranges are the United States, Brazil, Mexico,=20
India, and China, while the major exporting countries include Spain,=20
the United States, South Africa, the Netherlands, and Greece.\2\=20
Commercial production of sweet oranges and grapefruit in the=20
continental United States is limited to Arizona, California, Florida,=20
Louisiana, and Texas. Most of the production is located within Florida=20
and California. California is the leading producer of oranges for the=20
fresh market, major varieties of which include Valencia and navel.=20
While Florida produces a larger total quantity of oranges, only 5=20
percent of the State's orange crop is consumed as fresh fruit. Florida=20
supplies the highest amount of fresh grapefruit, and 45 percent of the=20
U.S. grapefruit crop is utilized as fresh fruit.
-------------------------------------------------------------------------=
--

    \2\ HS code 080510, fresh and dried oranges.

                                          Table 1--Production in United =
States of Fresh Oranges and Grapefruit
                                                                     [in =
short tons]
-------------------------------------------------------------------------=
-------------------------------------------------------------------------=
------
                                                           2003/04       =
            2004/05                   2005/06                   2006/07
                                                 =
-------------------------------------------------------------------------=
------------------------------
                                                     Orange     =
Grapefruit     Orange     Grapefruit     Orange     Grapefruit     =
Orange     Grapefruit
-------------------------------------------------------------------------=
-------------------------------------------------------------------------=
------
Arizona.........................................       14,000        =
5,000       12,000        5,000        9,000        5,000        7,000   =
     3,000
California......................................    1,669,000      =
171,000    1,845,000      181,000    1,650,000      178,000      986,000 =
     117,000
Florida.........................................      445,000      =
708,000      333,000      315,000      329,000      294,000      290,000 =
     466,000
Texas...........................................       50,000      =
137,000       52,000      125,000       54,000      128,000       63,000 =
     138,000
                                                 =
-------------------------------------------------------------------------=
------------------------------
    Total.......................................    2,178,000    =
1,021,000    2,242,000      626,000    2,042,000      603,000    =
1,346,000      724,000
-------------------------------------------------------------------------=
-------------------------------------------------------------------------=
------
Source: Economic Research Service (ERS), U.S. Department of Agriculture =
(USDA). Fruit and Tree Nuts Situation and Outlook Yearbook, October =
2007,
  combination of table C-21 Oranges: Utilization of production by State =
and table C-3 Grapefruit: Utilization of production by State. Note: =
Season
  begins in November for Arizona and California, and in October for =
Florida and Texas. Quantities for 2006/07 are totaled through October =
2007 only.

    In 2006, Chile produced 156,000 short tons of fresh oranges on=20
8,000 hectares.\3\ The Asociaci[oacute]n de Exportadores de Chile=20
(ASOEX) states that there are no official figures for the production of=20
grapefruit, as grapefruit is a relatively new species in Chile with a=20
small growing area.\4\ APHIS estimates, based on the total Chilean=20
citrus export volume, that approximately 5,000 short tons of grapefruit=20
were produced in 2006.
-------------------------------------------------------------------------=
--

    \3\ Food and Agriculture Organization (FAO) of the United=20
Nations. FAOSTAT, FAO Statistics Production Division 2008, ProdStat,=20
Crops. Originally reported as 142,000 metric tons. http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=3Dleavi=
ngFR.html&log=3Dlinklog&to=3Dhttp://faostat.fao.org/site/567/defa=
ult.aspx.
    \4\ http://frwebgat=
e.access.gpo.gov/cgi-bin/leaving.cgi?from=3DleavingFR.html&log=3Dlink=
log&to=3Dhttp://www.asoex.cl/.
-------------------------------------------------------------------------=
--

Imports and Exports

    In 2006, more than 97 percent of U.S. orange imports came from the=20
countries of South Africa, Australia, and Mexico, while 99 percent of=20
grapefruit imports (including pomelos, fresh or dried) came from the=20
Bahamas and Israel. Table 2 shows the value and quantity of fresh=20
oranges and grapefruit imported into the United States from 2003-2006.

                                               Table 2--U.S. Total =
Imports of Fresh Oranges and Grapefruit
-------------------------------------------------------------------------=
-------------------------------------------------------------------------=
------
                                                             Total value =
(in dollars)         Quantity in short tons            Value per short =
ton
                                                         =
-------------------------------------------------------------------------=
----------------------
                                                              Oranges    =
   Grapefruit        Oranges       Grapefruit        Oranges       =
Grapefruit
-------------------------------------------------------------------------=
-------------------------------------------------------------------------=
------
2003....................................................     $49,876,360 =
     $1,851,185          59,955          22,828         $831.89          =
$81.09
2004....................................................      58,785,735 =
      1,606,153          72,387          15,780          812.11          =
101.78
2005....................................................      68,502,310 =
      1,403,260          76,122          15,816          899.90          =
 88.73
2006....................................................      80,612,248 =
      2,142,111          81,117          20,890          993.78          =
102.54
-------------------------------------------------------------------------=
-------------------------------------------------------------------------=
------
Source: Global Trade Atlas (2005-2008). Originally reported in =
kilograms.

    The United States is a major exporter of fresh or dried oranges. In=20
the 2005-2006 season, the United States exported around 600,000 short=20
tons of fresh oranges, while imports were around 80,000 short tons.\5\=20
Regarding grapefruit, around 300,000 short tons were exported and only=20
20,000 short tons were imported.\6\ Clearly, the United

[[Page 50736]]

States is a large net exporter of both sweet oranges and grapefruit.
-------------------------------------------------------------------------=
--

    \5\ Eighty-four percent of total exports were to Canada, Japan,=20
South Korea, Hong Kong, and China.
    \6\ ERS, USDA. Fruit and Tree Nuts Situation and Outlook=20
Yearbook/FTS-2007/October 2007. Table F-18--Fresh Oranges, Supply=20
and Utilization. Pg. 150. Converted from million pounds using 1=20
pound =3D 0.0005 short tons.
-------------------------------------------------------------------------=
--

    Chile's current citrus exports are to Japan, Spain, the=20
Netherlands, and Canada. In the past 6 years, orange exports have=20
dramatically increased, from 3,600 short tons to over 28,000 short=20
tons, while grapefruit exports increased from 337 short tons to over=20
4,300 short tons.\7\ Like the United States but on a smaller scale,=20
Chile is a net exporter of sweet oranges and grapefruit. Its share of=20
overseas citrus markets such as that of Japan continues to expand.\8\
-------------------------------------------------------------------------=
--

    \7\ Global Trade Atlas (2005-2008). Originally reported in=20
kilograms. 1 kg =3D 0.0011023 short tons.
    \8\ USDA. Foreign Agricultural Service. Situation and Outlook=20
for Citrus. February 2006. pg. 6. http://frwebgate.access.=
gpo.gov/cgi-bin/leaving.cgi?from=3DleavingFR.html&log=3Dlinklog&t=
o=3Dhttp://www.fas.usda.gov/htp/Hort_Circular/2006/02-06/02-20-06%20Citru=
s%20Feature.pdf.
-------------------------------------------------------------------------=
--

Expected U.S Imports of Sweet Oranges and Grapefruit From Chile

    According to the NPPO of Chile, annual exports of sweet oranges and=20
grapefruit to the United States from Chile would total around 110,000=20
boxes: 93,500 boxes of oranges and 16,500 boxes of grapefruit. The=20
boxes are 17 kilograms for sweet oranges and 15 kilograms for=20
grapefruit, yielding approximately 1752.1 short tons of oranges and=20
272.8 short tons of grapefruit, or about 2,000 short tons overall. This=20
volume of imports from Chile would comprise a relatively minimal amount=20
compared to total U.S. imports of about 100,000 short tons and domestic=20
production of more than 2.6 million short tons (table 3). The expected=20
imports from Chile would be equivalent to 2 percent of U.S. imports of=20
oranges and grapefruit in 2006 and less than 0.1 percent of U.S.=20
production.

   Table 3--Combined Quantities of U.S. Fresh Oranges and Grapefruit,
  Domestically Produced and Imported, and Expected Annual Imports From
                                  Chile
------------------------------------------------------------------------
                                                              Volume in
                                                              short tons
------------------------------------------------------------------------
Domestic production, 2006..................................    2,645,000
All imports, 2006..........................................      102,006
Expected annual imports from Chile.........................        2,025
------------------------------------------------------------------------

Seasonal Production and Marketing of Oranges and Grapefruit

    Another aspect to consider regarding potential impacts of the=20
proposed rule is the seasonal difference between the citrus industries=20
in the United States and Chile. U.S imports of fresh fruit and=20
vegetables have increased substantially since the 1990s.\9\ Southern=20
hemisphere countries are dominant suppliers for off-season fresh fruit.=20
Availability of domestically produced oranges and grapefruit peaks=20
between October and January, gradually decreases from February to June,=20
and is lowest between July and September.\10\ In contrast, citrus=20
production in the southern hemisphere is between May and November.=20
Imports from the southern hemisphere complement the U.S. production=20
cycle and help to maintain year-round availability of fresh citrus.=20
Allowing importation of oranges and grapefruit from Chile would expand=20
U.S. consumers' access to fresh produce year round, while not directly=20
competing with the production and shipment of domestically produced=20
oranges and grapefruit intended for the fresh fruit market.
-------------------------------------------------------------------------=
--

    \9\ USDA, ERS. Increased U.S. Imports of Fresh Fruit and=20
Vegetables. Sophia Huang and Kuo Huang. Sept. 2007.
    \10\ http://frwebgate.access.gpo.gov=
/cgi-bin/leaving.cgi?from=3DleavingFR.html&log=3Dlinklog&to=3Dhtt=
p://www.dneworld.com/FreshCitrus/CitrusAvailability/tabid/157/Default.asp=
x. Chile data from Chilean Fresh Fruit. http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=3Dleav=
ingFR.html&log=3Dlinklog&to=3Dhttp://www.chileanfreshfruit.com/ci=
trus.shtml.
-------------------------------------------------------------------------=
--

Small Entity Impact

    Businesses most likely to be affected by this rule would be orange=20
and grapefruit producers, for which the Small Business Administration=20
(SBA) small-entity standard is annual sales of not more than $750,000.=20
Production of fresh oranges is classified under North American Industry=20
Classification System (NAICS) code 111310, and grapefruit production is=20
classified within NAICS code 111320, citrus (except orange) groves.\11\=20
In 2002, NASS reported that 1,272 out of 17,727 citrus farmers earned=20
more than $500,000, indicating that at least 93 percent of U.S. citrus=20
farmers are small entities. For California the statistics are similar,=20
with 91 percent of citrus farmers earning under $500,000. These data=20
substantiate that the majority of U.S fresh citrus producers are small=20
entities.
-------------------------------------------------------------------------=
--

    \11\ Also includes lemon, lime, mandarin, tangelo, and=20
tangerine.
-------------------------------------------------------------------------=
--

    Some importers of sweet oranges and grapefruit could be affected by=20
the proposed rule as well, as it would allow for increased imports=20
during the off-peak domestic citrus season. These industries and their=20
small-entity size standards are: Fresh fruit and vegetable wholesalers=20
(NAICS 424280, less than or equal to 100 employees), wholesalers and=20
other grocery stores (NAICS 445110, less than or equal to $23 million=20
in annual receipts), warehouse clubs and superstores (NAICS 452910,=20
less than or equal to $23 million in annual receipts) and fruit and=20
vegetable markets (NAICS 445230, less than or equal to $6 million in=20
annual receipts). Most entities that comprise these industries are=20
small. Given the relatively small quantity of sweet oranges and=20
grapefruit expected to be imported from Chile, the rule would not have=20
a significant impact on these types of industries.
    U.S. exports of sweet oranges and grapefruit far exceed U.S.=20
imports. The expected level of imports of oranges and grapefruit from=20
Chile would be equivalent to 2 percent of all U.S. imports in 2006 and=20
less than 0.1 percent of U.S. production that year. Moreover, the=20
imports from Chile would take place during the off-season for U.S.=20
domestically produced citrus, and would therefore primarily compete=20
with orange and grapefruit imports from other sources in the southern=20
hemisphere. While U.S producers and importers of sweet oranges and=20
grapefruit are predominantly small according to SBA guidelines, based=20
on available information the proposed rule would not have a significant=20
economic impact on a substantial number of small entities. In addition,=20
as stated previously, to ensure that the regulations are consistent=20
with the pest risk assessment's scope, we would amend the introductory=20
text of Sec.  319.56-38 to specifically state that clementines,=20
mandarins, and tangerines may be imported from Chile into the=20
continental United States (including Alaska) and Hawaii only. We do not=20
have information regarding the potential impact to small U.S. entities=20
outside of the continental United States and Hawaii as a result of this=20
proposed change. APHIS welcomes public comment on the proposed rule's=20
possible impacts.
    Under these circumstances, the Administrator of the Animal and=20
Plant Health Inspection Service has determined that this action would=20
not have a significant economic impact on a substantial number of small=20
entities.

Executive Order 12988

    This proposed rule would allow sweet oranges and grapefruit to be=20
imported into the continental United States from Chile. If this=20
proposed rule is adopted, State and local laws and regulations=20
regarding sweet oranges and grapefruit imported under this rule would=20
be preempted while the fruit is in foreign commerce. Fresh sweet=20
oranges and grapefruit are generally imported for immediate=20
distribution and sale to the consuming public and would remain in=20
foreign commerce until sold to the ultimate consumer. The question of=20
when foreign commerce ceases in other cases must be addressed on a=20
case-by-

[[Page 50737]]

case basis. If this proposed rule is adopted, no retroactive effect=20
will be given to this rule, and this rule will not require=20
administrative proceedings before parties may file suit in court=20
challenging this rule.

National Environmental Policy Act

    To provide the public with documentation of APHIS' review and=20
analysis of any potential environmental impacts associated with the=20
importation of sweet oranges and grapefruit from Chile, we have=20
prepared an environmental assessment. The environmental assessment was=20
prepared in accordance with: (1) The National Environmental Policy Act=20
of 1969 (NEPA), as amended (42 U.S.C. 4321 et seq.), (2) regulations of=20
the Council on Environmental Quality for implementing the procedural=20
provisions of NEPA (40 CFR parts 1500-1508), (3) USDA regulations=20
implementing NEPA (7 CFR part 1b), and (4) APHIS' NEPA Implementing=20
Procedures (7 CFR part 372).
    The environmental assessment may be viewed on the Regulations.gov=20
Web site or in our reading room. (A link to Regulations.gov and=20
information on the location and hours of the reading room are provided=20
under the heading ADDRESSES at the beginning of this proposed rule.) In=20
addition, copies may be obtained by calling or writing to the=20
individual listed under FOR FURTHER INFORMATION CONTACT.

Paperwork Reduction Act

    This proposed rule contains no new information collection or=20
recordkeeping requirements under the Paperwork Reduction Act of 1995=20
(44 U.S.C. 3501 et seq.).

Lists of Subjects

7 CFR Part 305

    Irradiation, Phytosanitary treatment, Plant diseases and pests,=20
Quarantine, Reporting and recordkeeping requirements.

7 CFR Part 319

    Coffee, Cotton, Fruits, Imports, Logs, Nursery stock, Plant=20
diseases and pests, Quarantine, Reporting and recordkeeping=20
requirements, Rice, Vegetables.

    Accordingly, we propose to amend 7 CFR parts 305 and 319 as=20
follows:

PART 305--PHYTOSANITARY TREATMENTS

    1. The authority citation for part 305 continues to read as=20
follows:

    Authority: 7 U.S.C. 7701-7772 and 7781-7786; 21 U.S.C. 136 and=20
136a; 7 CFR 2.22, 2.80, and 371.3.

    2. In Sec.  305.2, the table in paragraph (h)(2)(i) is amended by=20
adding, in alphabetical order, entries under Chile (all provinces=20
except provinces of Region 1 or Chanaral Township of Region 3) and=20
Chile (all provinces of Region 1 or Chanaral Township of Region 3), for=20
clementines, grapefruit, mandarins, oranges, and tangerines to read as=20
set forth below.


Sec.  305.2  Approved treatments.

* * * * *
    (h) * * *
    (2) * * *
    (i) * * *

-------------------------------------------------------------------------=
---------------------------------------
               Location                       Commodity                  =
 Pest              Treatment schedule
-------------------------------------------------------------------------=
---------------------------------------

                                                  * * * * * * *
Chile (all provinces except provinces
 of Region 1 or Chanaral Township of
 Region 3).

                                                  * * * * * * *
                                       Clementines............  =
Brevipalpus chilensis..  MB T104-a-1 or MB T101-
                                                                         =
                 n-2-1.

                                                  * * * * * * *
                                       Grapefruit.............  =
Brevipalpus chilensis..  MB T104-a-1 or MB T101-
                                                                         =
                 n-2-1.

                                                  * * * * * * *
                                       Mandarins..............  =
Brevipalpus chilensis..  MB T104-a-1 or MB T101-
                                                                         =
                 n-2-1.
                                       Oranges................  =
Brevipalpus chilensis..  MB T104-a-1 or MB T101-
                                                                         =
                 n-2-1.

                                                  * * * * * * *
                                       Tangerines.............  =
Brevipalpus chilensis..  MB T104-a-1 or MB T101-
                                                                         =
                 n-2-1.

                                                  * * * * * * *
Chile (all provinces of Region 1 or
 Chanaral Township of Region 3).

                                                  * * * * * * *
                                       Clementines............  =
Brevipalpus chilensis..  MB T104-a-1 or
                                                                =
Ceratitis capitata.....  MB T101-n-2-1.
                                                                         =
                CT T107-a.

                                                  * * * * * * *
                                       Grapefruit.............  =
Brevipalpus chilensis..  MB T104-a-1 or
                                                                =
Ceratitis capitata.....  MB T101-n-2-1.
                                                                         =
                CT T107-a.

                                                  * * * * * * *
                                       Mandarins..............  =
Brevipalpus chilensis..  MB T104-a-1 or
                                                                =
Ceratitis capitata.....  MB T101-n-2-1.
                                                                         =
                CT T107-a.

[[Page 50738]]



                                                  * * * * * * *
                                       Oranges................  =
Brevipalpus chilensis..  MB T104-a-1 or
                                                                =
Ceratitis capitata.....  MB T101-n-2-1.
                                                                         =
                CT T107-a.

                                                  * * * * * * *
                                       Tangerines.............  =
Brevipalpus chilensis..  MB T104-a-1 or
                                                                =
Ceratitis capitata.....  MB T101-n-2-1.
                                                                         =
                CT T107-a.

                                                  * * * * * * *
-------------------------------------------------------------------------=
---------------------------------------

* * * * *

PART 319--FOREIGN QUARANTINE NOTICES

    3. The authority citation for part 319 continues to read as=20
follows:

    Authority: 7 U.S.C. 450, 7701-7772, and 7781-7786; 21 U.S.C. 136=20
and 136a; 7 CFR 2.22, 2.80, and 371.3.

    4. Section 319.56-38 is amended as follows:
    a. By revising the section heading and the introductory text to=20
read as set forth below.
    b. In paragraph (e), by removing the words ``Clementines,=20
mandarins, or tangerines'' and adding the words ``Clementines,=20
grapefruit, mandarins, sweet oranges, or tangerines'' in their place.
    c. In paragraph (f), by removing the words ``Clementines,=20
mandarins, or tangerines'' and adding the words ``Clementines,=20
grapefruit, mandarins, sweet oranges, and tangerines'' in their place.


Sec.  319.56-38  Citrus from Chile.

    Clementines (Citrus reticulata Blanco var. Clementine), mandarins=20
(Citrus reticulata Blanco), and tangerines (Citrus reticulata Blanco)=20
may be imported into the continental United States and Hawaii from=20
Chile and grapefruit (Citrus paradisi Macfad.) and sweet oranges=20
(Citrus sinensis (L.) Osbeck) may be imported into the continental=20
United States from Chile in accordance with this section and all other=20
applicable provisions of this subpart.
* * * * *

    Done in Washington, DC, this 22nd day of August 2008.
Kevin Shea,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. E8-19871 Filed 8-27-08; 8:45 am]

BILLING CODE 3410-34-P