[Federal Register: October 25, 2007 (Volume 72, Number 206)]
[Rules and Regulations]
[Page 60537-60541]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25oc07-2]
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DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
7 CFR Part 319
[Docket No. APHIS-2006-0133]
RIN 0579-AC20
Importation of Unshu Oranges From the Republic of Korea Into
Alaska
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Final rule.
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SUMMARY: We are amending the regulations governing the importation of
citrus fruit to allow fresh Unshu oranges from the Republic of Korea to
be imported into the State of Alaska under certain conditions. As a
condition of entry, the oranges will have to be prepared for shipping
using packinghouse procedures that include culling of damaged or
diseased fruit and cleaning with high-pressure air or water in
combination with brushing. In addition, the oranges will have to be
accompanied by a phytosanitary certificate with an additional
declaration stating that the oranges were inspected and found free from
Xanthomonas axonopodis pv. citri and Unaspis yanonensis. The individual
cartons or boxes in which the Unshu oranges are shipped will also have
to be marked with a statement restricting their importation and
distribution to the State of Alaska. This action will allow for the
importation of Unshu oranges from the Republic of Korea into Alaska
while continuing to provide protection against the introduction of
quarantine pests.
DATES: Effective Date: November 26, 2007.
FOR FURTHER INFORMATION CONTACT: Mr. Alex Belano, Import Specialist,
Commodity Import Analysis and Operations, Plant Health Programs, PPQ,
APHIS, 4700 River Road Unit 133, Riverdale, MD 20737-1231; (301) 734-
8765.
SUPPLEMENTARY INFORMATION:
Background
Citrus canker is a disease that affects citrus and is caused by the
infectious bacterium Xanthomonas axonopodis pv. citri (also known as
Xanthomonas campestris pv. citri and Xanthomonas citri). Currently, the
regulations in 7 CFR 319.28 (referred to below as the regulations)
allow the importation of Unshu oranges (Citrus reticulata var. unshu)
from certain areas in the Republic of Korea (South Korea) into certain
areas of the United States under a permit and after the specified
safeguards of a preclearance program have been met to prevent the
introduction of citrus canker. However, the importation of Unshu
oranges from South Korea was administratively suspended in 2002 due to
the increased number of interceptions of the causal agent of citrus
canker at various packinghouses in South Korea.
In 2005, the national plant protection organization (NPPO) of South
Korea requested that the Animal and Plant Health Inspection Service
(APHIS) allow the shipment of Unshu oranges into the State of Alaska
until the pest risk of citrus canker from South Korea could be
adequately mitigated for the rest of the United States.
On December 4, 2006, we published in the Federal Register (71 FR
70330-70335, Docket No. APHIS-2006-0133) a proposal \1\ to allow the
importation of fresh Unshu oranges from the Republic of Korea into the
State of Alaska under certain conditions. As a condition of entry, we
proposed that the oranges would have to be prepared for shipping using
packinghouse procedures that include culling of damaged or diseased
fruit and washing in a water bath. In addition, we proposed that the
oranges would have to be accompanied by a phytosanitary certificate
with an additional declaration stating that the oranges were inspected
and found free from Xanthomonas axonopodis pv. citri and Unaspis
yanonensis. The individual cartons or boxes in which the Unshu oranges
are shipped would also have to be marked with a statement restricting
their importation and distribution to the State of Alaska. This action
was intended to allow for the importation of Unshu oranges from the
Republic of Korea into Alaska while continuing to provide protection
against the introduction of quarantine pests.
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\1\ To view the proposed rule and the comments we received, go
to http://www.regulations.gov/fdmspublic/component/main?main=DocketDetail&d=APHIS-2006-0133
.
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We solicited comments concerning our proposal for 60 days ending
February 2, 2007. We received two comments by that date, both from
domestic citrus industry groups. One of the commenters expressed
concern that a pesticide not approved for use in the United States
could be imported on fruit from South Korea. While the United States
does not have direct control over pesticides that are used on food
commodities such as Unshu oranges in other countries, there are
regulations in the United States concerning the importation of food to
ensure that commodities do not enter the United States containing
illegal pesticide residues. Through section 408 of the Federal Food,
Drug, and Cosmetic Act, the Environmental Protection Agency (EPA) has
the authority to establish, change, or cancel tolerances for food
commodities. These tolerances are the maximum levels of pesticide
residues that have been determined, through comprehensive safety
evaluations, to be safe for human consumption. Tolerances apply to both
food commodities that are grown in the United States and food
commodities that are grown in other countries and imported into the
United States. While EPA has no authority in a foreign country, the
tolerance levels are enforced once the commodity enters the
[[Page 60538]]
United States. Chemicals such as DDT that are banned in the United
States do not have tolerances on food commodities. Federal Government
food inspectors are responsible for monitoring food commodities that
enter the United States to confirm that tolerance levels are not
exceeded and that residues of pesticide chemicals that are banned in
the United States are not present on the commodities. Tolerance levels
for all chemicals that are acceptable for use on Unshu oranges may be
found in EPA's regulations in 40 CFR 180.101 through180.2020. Tolerance
information can also be obtained at http://www.epa.gov/pesticides/food/viewtols.htm
.
Both commenters expressed concern that the systems approach
developed by South Korea was not stringent enough, given the difficulty
of eradicating X. axonopodis pv. citri (citrus canker) and the
potential risks from asymptomatic fruit. Concerns included the lack of
requirements for worker training, equipment sanitation, and
establishment of buffer zones. In particular, the commenters were
concerned that the proposed rule did not mention inspection or sampling
rates for citrus canker. As stated in the proposed rule, shipments of
Unshu oranges to Alaska present minimal risk of introducing or
disseminating citrus canker due to the lack of host material within
Alaska and the lack of a suitable climate for establishment of the
disease. For those reasons, and because visibly infected fruit will be
culled at the packinghouse, we are not requiring a sampling regime for
Unshu oranges within South Korea. In addition, fruit exposed to, but
asymptomatic for, citrus canker is unlikely to have sufficient levels
of viable bacteria to cause infection. However, a standard port of
entry inspection rate of 2 percent would apply. APHIS has successfully
operated similar programs of low risk for tropical fruit commodities
imported into Alaska, such as sand pears and apples from Japan,
avocados from Mexico, and sand pears from South Korea.
Both commenters also stated that, despite labeling restricting
distribution of the fruit to Alaska, it may accidentally be redirected
or sent through first-class mail to a citrus-producing State. As stated
in the risk management document, in the past 10 years, over 24 million
Unshu oranges from South Korea have been imported and only one air
shipment of misdirected fruit ended up in a citrus-producing State.
That shipment was immediately redirected to a non-citrus-producing
State. In order for the fruit to leave Alaska by ground transport, it
would have to travel by truck or car via highway, and all agricultural
shipments are inspected at the U.S.-Canada border. As citrus fruit is
not grown in Canada or Alaska, import restrictions for non-U.S. citrus
fruit would apply. Further, we consider the volume of fruit shipped in
first-class mail to be too small to present a potential pest risk. The
probability of potentially infected citrus fruit reaching areas where
any disease could spread is very low.
Both commenters further expressed concern regarding the lack of a
requirement for sodium hypochlorite or sodium orthophenyl phenol in the
required water bath and concern that the water bath could contribute to
the spread of citrus canker. As stated above, we believe shipments of
Unshu oranges to Alaska present a minimal risk of introducing or
disseminating citrus canker due to the lack of host material and the
lack of a suitable climate for establishment of the disease; therefore
requiring the use of a disinfectant wash is not necessary. In addition,
because the water bath requirement is actually a combination high-
pressure water spray and brushing intended to remove external insect
pests, there is no standing water that can serve as a medium for
transmitting infection. Alternately, forced air cleaning and brushing
may be used in place of the water spray. We have amended the regulatory
text in Sec. 319.28(c)(1) to make that clear.
Finally, both commenters stated that U.S. inspectors should be
present to oversee all aspects of South Korea's citrus export program.
In a preclearance program, U.S. inspectors are required to be onsite in
the country of export to oversee shipments to the United States.
However, the program for importing Unshu oranges to Alaska from South
Korea is not a preclearance program. Therefore, the presence of U.S.
inspectors to oversee the program is not required and, based on the
reasons given in the proposed rule, is not necessary.
Therefore, for the reasons given in the proposed rule and in this
document, we are adopting the proposed rule as a final rule, with the
change discussed in this document.
Executive Order 12866 and Regulatory Flexibility Act
This rule has been reviewed under Executive Order 12866. The rule
has been determined to be not significant for the purposes of Executive
Order 12866 and, therefore, has not been reviewed by the Office of
Management and Budget.
The United States is not a commercial producer of Unshu oranges
(Citrus reticulata var. unshui). The United States does produce other
mandarin varieties of Citrus reticulata, such as tangerines and Satsuma
mandarins. Effects of the final rule on U.S. entities will depend on
(1) the substitutability in Alaska of Unshu oranges for these other
mandarin varieties, and (2) Alaska's share of the U.S. supply of the
other mandarin varieties. We address these overriding issues before
discussing small entities that may be affected.
Unshu orange prices are higher than the prices of U.S.-grown
mandarin varieties, indicating that they are not close substitutes.
Retail prices of Unshu oranges are approximately $1.20 per pound,
whereas other mandarin varieties, such as Satsuma, range from $0.60 to
$1 per pound depending on the time of year.\2\
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\2\ Information on retail prices of Unshu oranges provided by
Jerry Kraft of The Oppenheimer Group, the sole importer of Unshu
oranges from Japan.
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Clearly, the effects of the final rule with respect to Alaska's
broadly defined demand for all mandarin varieties are most likely to be
very limited. Rather, we expect reestablished imports from South Korea
to compete for a share of Alaska's Unshu orange market.
Prior to the administrative suspension in 2002, South Korea and
Japan were principal suppliers of Unshu oranges to the United States.
It is estimated that Alaska consumes approximately 30 percent of the
Unshu oranges imported from Japan. Quantities of Unshu oranges imported
from South Korea and Japan, 1995 to 2005, are shown in table 1.
[[Page 60539]]
Table 1.--Unshu Orange Imports by the United States From South Korea and
Japan, 1995-2005
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Year South Korea Japan
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Metric tons
-------------------------------
1995.................................... 50 231
1996.................................... 220 160
1997.................................... 1,190 143
1998.................................... 40 223
1999.................................... 380 342
2000.................................... 240 106
2001.................................... 1,434 291
2002.................................... 1,601 (\1\)
2003.................................... .............. 275
2004.................................... .............. 271
2005.................................... .............. 256
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Source: USDA, APHIS, International Services.
\1\ In 2002, we amended the regulations to allow Unshu oranges from
Honshu Island, Japan, to be imported into the previously prohibited
citrus-producing States of Arizona, California, Florida, Hawaii,
Louisiana, and Texas. That same rule imposed a fumigation requirement
for all Unshu oranges from Honshu Island, which seriously curtailed
the market for that fruit in non-citrus producing States. As a result,
there were no exports of Unshu oranges from Japan to the United States
in 2002. We subsequently amended the regulations to apply the
fumigation requirement only to fruit bound for citrus-producing
States, and exports resumed in 2003.
Unshu orange imports from Japan between 1995 and 2005 averaged 238
metric tons per year.\3\ Average imports of Unshu oranges from South
Korea between 1995 and 2002 were 644 metric tons per year, with
significant year-to-year fluctuations and the average for 2001 and 2002
jumping to 1,518 metric tons. Imports of Unshu oranges from Japan have
maintained a more steady supply, even in the more recent years during
which Unshu oranges from South Korea have been administratively
suspended. From this data, it is not apparent that South Korean
supplies will significantly displace Unshu orange imports from Japan.
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\3\ This average does not include 2002, since it is likely that
Japan would have exported Unshu oranges to the United States in that
year if the fumigation requirement described in footnote 1 of table
1 had not been in place.
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According to the pest risk assessment prepared for this rulemaking,
the quantity of Unshu oranges that will be imported from South Korea
into Alaska each year is estimated to be between 200 and 2,000 metric
tons (440,925 and 4,409,245 pounds), based on projected imports of
between 10 and 100 standard 40-foot containers.\4\ The lower end of
this range of imports will be comparable to recent import levels from
Japan. Based upon the past shipments detailed in table 1, we anticipate
that imports of Unshu oranges from South Korea will not exceed 75
containers (1,500 metric tons) per annum. The historical import data
detailed in table 1 suggest that South Korean supplies will not
significantly displace Japanese Unshu oranges on the Alaskan market.
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\4\ USDA, APHIS, PPQ-CHPST, ``A Qualitative Pest Risk Analysis
for the Importation of Fresh Unshu Orange Fruit (Citrus reticulata
Blanco var. unshu Swingle) from the Republic of Korea,'' May 25,
2006, pg 33.
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Our expectation is that the final rule will have little effect on
U.S. producers of mandarin varieties such as tangerines and Satsumas.
Any impact for these producers will be small, given that the various
mandarin varieties do not appear to be close substitutes for Unshu
oranges. Moreover, only sales to Alaska will be affected. However,
recognizing that our information for determining possible effects of
the final rule is incomplete, we present here data on U.S. tangerine
trade and production.
The United States is a net importer of mandarins (including
Satsumas and tangerines). In 2005, the United States imported 209.4
million pounds of mandarins (including Satsumas and tangerines) with
approximately 91 percent arriving from Spain. In that same year, the
United States exported approximately 48.1 million pounds of mandarins
(including Satsumas and tangerines). Canada is the largest importer of
U.S. fresh mandarins, accounting for 52 percent of U.S. exports. The
second and third largest importers of U.S. mandarins are South Korea
and Japan, accounting for approximately 38 and 6 percent of exports,
respectively.\5\ U.S. imports of tangerines experienced an average
increase of 17.8 percent annually over the last decade while exports
have increased an average of 5.9 percent.\6\ Domestic production
accounted for approximately 80 percent of domestic fresh consumption in
2005.\7\ The United States relies on imports of mandarins to supplement
domestic production in satisfying domestic demand. Fresh utilization of
U.S. mandarin and tangerine production only accounts, on average, for
70 percent of total utilized production annually.\8\ U.S. grower
revenue from fresh tangerine production in 2004-05 was approximately
$107.4 million.\9\
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\5\ Source: Global Trade Atlas.
\6\ Source: USDA, FAS, PS&D Online. ``Fresh Tangerines:
Production, Supply and Distribution in selected Countries,'' http://www.fas.usda.gov/psdonline/psdDownload.aspx
.
\7\ The proportion of domestic fresh consumption attributed to
U.S. production is production less exports and processed
utilization. Data Source: USDA ERS Briefing Room, Fruit and Tree Nut
Yearbook, 2005.
\8\ USDA, ERS Briefing Room, Fruit and Tree Nut Yearbook, 2005.
\9\ Florida Agricultural Statistics Service (FASS), National
Agricultural Statistics Service (NASS), USDA, ``Citrus Summary 2004-
05,'' February 2006.
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U.S. tangerine production, imports, and domestic supplies are shown
in table 2. Net imports were 20 percent of domestic supply in 2004 to
2005.
[[Page 60540]]
Table 2.--U.S. Fresh Tangerine Production and Importation, Seasons 1999-2000 through 2004-05
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Net imports
Year Production \a\ \b\ Supply \c\
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Metric tons
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1999-00......................................................... 298,464 68,185 366,649
2000-01......................................................... 266,712 85,728 352,440
2001-02......................................................... 296,649 37,261 333,910
2002-03......................................................... 289,392 69,164 358,556
2003-04......................................................... 295,742 72,753 368,495
2004-05......................................................... 254,919 63,944 318,863
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Data Source: USDA/ERS Briefing Room,Fruit and Tree Nut Yearbook, 2005.
\a\ Excludes processed fruit.
\b\ Net imports are imports minus exports.
\c\ U.S. production (excluding processed utilization) plus net imports.
The small business size standard for tangerine groves, as
identified by the Small Business Administration (SBA) based upon the
North American Industry Classification System (NAICS) code 111320, is
$750,000 or less in annual receipts.\10\
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\10\ Based upon 2002 Census of Agriculture, State Data and the
``Small Business Size Standards by NAICS Industry,'' Code of Federal
Regulations, Title 13, Chapter 1.
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While available data do not provide the size distribution of U.S.
tangerine farms by annual receipts, it is reasonable to assume that the
majority of the operations are small businesses by SBA standards.\11\
According to the 2002 Census of Agriculture data, there were a total of
1,731 tangerine operations in the United States in 2002.\12\ It is
estimated that approximately 93 percent of all citrus-producing farms
had annual sales in 2002 of $500,000 or less.
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\11\ Based upon 2002 Census of Agriculture, State Data.
\12\ The number of tangerine farms in the United States, as
reported by the 2002 Census of Agriculture, includes operations that
produced tangerines for processed utilization.
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If Unshu oranges and U.S.-grown mandarin varieties were close
substitutes, then U.S. entities could be affected to the extent that
Unshu orange imports from South Korea would displace sales in Alaska of
the U.S.-grown mandarin varieties. Small entities would be affected,
since they comprise a substantial number of the producers of mandarin
varieties, as indicated by the data on tangerine operations. However,
even if all Unshu orange imports from South Korea were to directly
replace consumption of U.S.-grown tangerines in Alaska, the effect on
U.S. producers will be very minor. Under such a scenario, annual
imports of Unshu oranges from South Korea of 2,000 metric tons (the
upper limit of the projected range of imports) will displace less than
1 percent of fresh tangerines produced by U.S. operations in 2004-05.
We emphasize that even a small impact for U.S. producers such as this
is highly unlikely.
We expect that any product displacement that may occur as a result
of the changes will be borne by other foreign suppliers of Unshu
oranges, in particular Japan's exporters. However, we do not expect any
significant product displacement as a result of South Korean supplies.
Alaska's Unshu orange consumers may benefit to the extent that the
competition results in price declines.
An alternative to this final rule was to continue with the 2002
administrative suspension of the importation of Unshu oranges from
South Korea into all parts of the United States, including Alaska.
Continuing the suspension of South Korean Unshu orange imports into
Alaska is not a satisfactory alternative to the final rule. The final
rule's specified mitigation measures will ensure a low risk of
introduction of citrus canker and Diaspidad scale into the United
States. Resumption of imports will reestablish competition with
Japanese suppliers, benefitting U.S. consumers but with little if any
expected effect on U.S. producers.
Under these circumstances, the Administrator of the Animal and
Plant Health Inspection Service has determined that this action will
not have a significant economic impact on a substantial number of small
entities.
Executive Order 12988
This final rule allows fresh Unshu oranges to be imported into the
State of Alaska from South Korea. State and local laws and regulations
regarding Unshu oranges imported under this rule will be preempted
while the fruit is in foreign commerce. Fresh fruits are generally
imported for immediate distribution and sale to the consuming public,
and remain in foreign commerce until sold to the ultimate consumer. The
question of when foreign commerce ceases in other cases must be
addressed on a case-by-case basis. No retroactive effect will be given
to this rule, and this rule will not require administrative proceedings
before parties may file suit in court challenging this rule.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.), the information collection or recordkeeping requirements
included in this rule have been approved by the Office of Management
and Budget (OMB) under OMB control number 0579-0314.
E-Government Act Compliance
The Animal and Plant Health Inspection Service is committed to
compliance with the E-Government Act to promote the use of the Internet
and other information technologies, to provide increased opportunities
for citizen access to Government information and services, and for
other purposes. For information pertinent to E-Government Act
compliance related to this rule, please contact Mrs. Celeste Sickles,
APHIS' Information Collection Coordinator, at (301) 734-7477.
List of Subjects in 7 CFR Part 319
Coffee, Cotton, Fruits, Imports, Logs, Nursery stock, Plant
diseases and pests, Quarantine, Reporting and recordkeeping
requirements, Rice, Vegetables.
0
Accordingly, we are amending 7 CFR part 319 as follows:
PART 319--FOREIGN QUARANTINE NOTICES
0
1. The authority citation for part 319 continues to read as follows:
Authority: 7 U.S.C. 450, 7701-7772, and 7781-7786; 21 U.S.C. 136
and 136a; 7 CFR 2.22, 2.80, and 371.3.
0
2. Section 319.28 is amended as follows:
0
a. By redesignating paragraphs (c) through (i) as paragraphs (d)
through (j), respectively.
0
b. By adding a new paragraph (c) to read as set forth below.
0
c. By revising newly redesignated paragraph (f) to read as set forth
below.
[[Page 60541]]
Sec. 319.28 Notice of quarantine.
* * * * *
(c) The prohibition does not apply to Unshu oranges (Citrus
reticulata Blanco var. unshu, Swingle [Citrus unshiu Marcovitch,
Tanaka]), also known as Satsuma mandarin, grown in the Republic of
Korea and imported under permit into the State of Alaska under the
following conditions:
(1) The Unshu oranges must be prepared for shipping using
packinghouse procedures that include culling damaged or diseased fruit
and cleaning the fruit with high-pressure air or water spray in
combination with brushing.
(2) Each shipment of Unshu oranges must be accompanied by a
phytosanitary certificate from the national plant protection
organization of the Republic of Korea bearing the following additional
declaration: ``These oranges were inspected and are considered to be
free from citrus canker (Xanthomonas axonopodis pv. citri) and
arrowhead scale (Unaspis yanonensis).
(3) The individual boxes in which the oranges are shipped must be
marked with the following: ``These oranges may not be shipped to or
distributed in any State other than Alaska.''
* * * * *
(f) Importations allowed in paragraphs (b), (c), (d), and (e) of
this section shall be subject to the permit and other requirements
under the regulations in Subpart-Fruits and Vegetables of this part.
* * * * * *
(Approved by the Office of Management and Budget under control
number 0579-0314)
Done in Washington, DC, this 19th day of October, 2007.
Kevin Shea,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. E7-21007 Filed 10-24-07; 8:45 am]
BILLING CODE 3410-34-P