[Federal Register Volume 65, Number 81 (Wednesday, April 26, 2000)]
[Proposed Rules]
[Pages 24423-24429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10388]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

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

========================================================================


Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / 
Proposed Rules

[[Page 24423]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 319

[Docket No. 97-065-1]
RIN 0579-AA93


Importation of Fuji Variety Apples From the Republic of Korea

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: We are proposing to amend the regulations governing the 
importation of fruits and vegetables to allow Fuji variety apples grown 
in certified orchards within approved production areas in the Republic 
of Korea to be imported into the United States, without treatment, 
under conditions designed to prevent the introduction into the United 
States of the peach fruit moths (Carposina sasakii and C. niponensis), 
the yellow peach moth (Conogethes punctiferalis), the fruit tree spider 
mite (Tetranychus viennensis), and the kanzawa mite (T. kanzawai). The 
conditions to which the proposed importation of Fuji variety apples 
would be subject, including pest risk-reducing cultural practices, 
packinghouse procedures, and inspection and shipping procedures, would 
reduce the risk of pest introduction to an insignificant level.

DATES: We invite you to comment on this docket. We will consider all 
comments that we receive by June 26, 2000.

ADDRESSES: Please send your comment and three copies to: Docket No. 97-
065-1, Regulatory Analysis and Development, PPD, APHIS, Suite 3C03, 
4700 River Road, Unit 118, Riverdale, MD 20737-1238. Please state that 
your comment refers to Docket No. 97-065-1.
    You may read any comments that we receive on this docket in our 
reading room. The reading room is located in room 1141 of the USDA 
South Building, 14th Street and Independence Avenue, SW., Washington 
DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through 
Friday, except holidays. To be sure someone is there to help you, 
please call (202) 690-2817 before coming.
    APHIS documents published in the Federal Register, and related 
information, including the names of organizations and individuals who 
have commented on APHIS rules, are available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html.

FOR FURTHER INFORMATION CONTACT: Mr. Dennis J. Hannapel, Co-director of 
Asia and Pacific, Phytosanitary Issues Management, PPQ, APHIS, 4700 
River Road Unit 140, Riverdale, MD 20737-1236; (301) 734-4308.

SUPPLEMENTARY INFORMATION:

Background

    The Fruits and Vegetables regulations, contained in 7 CFR 319.56 
through 319.56-8 (referred to below as the regulations), prohibit or 
restrict the importation of fruits and vegetables into the United 
States from certain parts of the world to prevent the introduction and 
dissemination of plant pests that are new to or not widely distributed 
within the United States.
    Currently, Sec. 319.56-2cc of the regulations specifies that Fuji 
variety apples may be imported into the United States from the Republic 
of Korea or Japan if the apples have been cold treated and then 
fumigated for the peach fruit moth (Carposina niponensis), the yellow 
peach moth (Conogethes punctiferalis), the fruit tree spider mite 
(Tetranychus viennensis), and the kanzawa mite (T. kanzawai).
    The regulations have allowed the importation of Fuji variety apples 
from the Republic of Korea, if they have been treated, since August 
1994. However, the Republic of Korea has only shipped Fuji variety 
apples to Saipan and the U.S. territory of Guam.
    The National Plant Quarantine Service (NPQS) of the Ministry of 
Agriculture of the Republic of Korea has requested that the Animal and 
Plant Health Inspection Service (APHIS) consider allowing Fuji variety 
apples grown in certified orchards within approved production areas in 
the Republic of Korea to be imported into the United States without 
cold treatment and fumigation. In support of its request, the 
Government of the Republic of Korea submitted the results of scientific 
studies and surveys that were conducted over a 3-year period in Fuji 
variety apple producing areas of the Republic of Korea and that reveal 
data on pest population and pest management. A work plan that 
accompanied the request contained specific phytosanitary guidelines for 
mitigating the risk of plant pest introduction associated with the 
importation of Fuji variety apples from the Republic of Korea into the 
United States.
    The insect pests of concern for Fuji variety apples from the 
Republic of Korea are the peach fruit moths (Carposina sasakii and C. 
niponensis), the yellow peach moth (Conogethes punctiferalis), the 
fruit tree spider mite (Tetranychus viennensis), and the kanzawa mite 
(T. kanzawai), which can infest Fuji variety apples and other fruits 
and vegetables.
    APHIS has reviewed the documentation submitted by the Government of 
the Republic of Korea in support of its request and conducted several 
visits to Fuji variety apple producing areas in the Republic of Korea. 
We also reviewed the pest risk assessment we prepared prior to allowing 
the importation of Fuji variety apples with treatment and determined 
that the pest complex identified is still accurate. Based on our review 
of the documentation provided by the Republic of Korea, our pest risk 
assessment, and the data gathered during the site visits, we believe 
that the Government of the Republic of Korea has demonstrated that the 
Fuji variety apple producing areas of the Republic of Korea can produce 
Fuji variety apples that could be imported into the United States 
without presenting a significant risk of plant pest introduction.
    We are proposing to amend Sec. 319.56-2cc of the regulations to 
allow the importation of Fuji variety apples from the Republic of Korea 
under certain conditions. These conditions constitute a systems 
approach to mitigating pest risk and are discussed in detail below.

Systems Approaches

    Using systems approaches to phytosanitary security, APHIS 
establishes growing, packing, shipping,

[[Page 24424]]

and other conditions whereby fruits and vegetables may be imported into 
the United States from countries that are not free of certain plant 
pests. APHIS has used systems approaches to establish conditions for 
the importation of several commodities, including Unshu oranges from 
Japan (7 CFR 319.28); tomatoes from Spain, France, Morocco, and Western 
Sahara (7 CFR 319.56-2dd); peppers from Israel (7 CFR 319.56-2u); Ya 
variety pears from China (7 CFR 319.56-2ee); and Hass avocados from 
Mexico (7 CFR 319.56-2ff). Each of these programs has performed 
successfully.
    For the Ya variety pears mentioned above, APHIS used a systems 
approach to establish growing, treatment, packing, and inspection 
requirements designed to prevent the introduction of plant pests, 
including Bactrocera dorsalis, which exist in China and can infest Ya 
pears. The rule requires Chinese growers and agricultural agencies to 
follow phytosanitary measures, including applying pesticides to reduce 
the pest population and bagging the pears on the trees to reduce the 
opportunity for insect pests to attack the fruit during the growing 
season. The rule also requires measures to preclude comminglement with 
other fruit at the packinghouse and specifies other shipment, 
treatment, and inspection requirements. The systems approach for Ya 
variety pears is most like the systems approach that we are proposing 
for Fuji variety apples from the Republic of Korea.
    The systems approach we are proposing for Fuji variety apples from 
the Republic of Korea combines a series of complementary phytosanitary 
measures, including pest risk-reducing cultural practices, packinghouse 
procedures, and inspection and shipping procedures, all intended to 
prevent the introduction of Carposina sasakii, C. niponensis, 
Conogethes punctiferalis, Tetranychus viennensis, and T. kanzawai. Some 
of the proposed requirements were originally suggested in the 
mitigation plan that accompanied the request submitted by the 
Government of the Republic of Korea. The proposed conditions for 
importation, which would be set out in Sec. 319.56-2cc, are explained 
below.

Permit Requirement

    Section 319.56-3 of the regulations requires persons contemplating 
the importation of fruits or vegetables that are authorized entry under 
the regulations to first apply for a permit from APHIS. That permit 
requirement would be applicable to the importation of Fuji variety 
apples under the provisions of this proposed rule. Section 319.56-4 
states that, upon receipt of an application and approval by an 
inspector, a permit will be issued that specifies the conditions of 
entry and the port of entry. Therefore, our proposed regulations would 
require that the Fuji variety apples be imported under a permit issued 
in accordance with Sec. 319.56-4.

Registered Growers, Certified Orchards, and Export Production Areas

    First, we would require that the Fuji variety apples be grown in a 
certified orchard in an APHIS-approved export production area by 
growers registered with the Korean Ministry of Agriculture. An export 
production area may encompass several orchards. Orchard certification 
and export production area approval would be granted initially when the 
grower registers and agrees to comply with the requirements in our 
regulations and after inspection by APHIS. If any of the listed pests, 
or any other pests of quarantine significance, are found during the 
inspections, the orchard would not be certified and, therefore, would 
not be included in the export program. As part of the ongoing 
certification and approval, APHIS and the Korean Ministry of 
Agriculture would inspect the orchards and the export production areas 
to ensure that the Fuji variety apples were grown in accordance with 
our regulations.
    The export production area would have to be surrounded by a 200-
meter-wide buffer area. The buffer area would have to receive the same 
treatments as would be required in the export production area (see 
``Pest Risk-Reducing Cultural Practices,'' below). This buffer area, in 
which only trees of the of the genera malus (apple or crabapple) could 
be grown and from which no fruit could be offered for importation into 
the United States, would separate the export production area from 
surrounding agricultural and nonagricultural areas. No trees of the 
Prunus species (peach, plum, apricot, cherry, Prunus tomentosa, etc.) 
could be grown in the export production area or buffer zone because 
these trees are known hosts of Tetranychus viennensis. Because those 
areas lying outside the buffer area would not be subject to the same 
measures as would be applied in the export production area and buffer 
area, there is the possibility that Carposina sasakii, C. niponensis, 
Conogethes punctiferalis, Tetranychus viennensis, or T. kanzawai may be 
present in those areas. Thus, by providing for the suppression of plant 
pests over a wide area, the buffer area would offer the export 
production area an additional measure of protection. The buffer area 
would be inspected by APHIS. If any of the listed pests, or any other 
pests of quarantine significance, were found in the buffer area, all 
orchards within 200 meters of the detection site would be removed from 
the export program until the source of the pest infestation is 
identified and removed. Then, the buffer area and the removed orchards 
could be reinspected for recertification.

Pest Risk-Reducing Cultural Practices

    Under the systems approach, the Fuji variety apples must originate 
from certified orchards within export production areas where chemical 
controls and cultural practices ensure that the apples are not infested 
with the pests previously listed. The Korean Ministry of Agriculture 
and APHIS would be responsible for conducting field inspections for 
signs of pest infestations during the growing season. If pests are 
found during the inspections, the orchard would not be certified and, 
therefore, would not be included in the export program. The registered 
growers would be responsible for following phytosanitary measures 
agreed upon by APHIS and the Ministry of Agriculture. These measures 
would include applying pesticides and controlling weeds to reduce the 
pest populations and bagging the apples on the trees to reduce the 
opportunity for insect pests to attack the fruit during the growing 
season. Application of pesticides in Fuji variety apple orchards in the 
Republic of Korea is a routine pest management practice for the control 
of pests, including mites and rust. NPQS personnel would have to 
monitor the application of the treatments to ensure that the treatments 
were being applied correctly and at the proper time. Controlling weeds 
is another routine pest management practice for reducing mite 
populations during the growing season. Bagging is also a routine pest 
management practice for growing Fuji variety apples in the Republic of 
Korea, and the Republic of Korea submitted research results, which we 
reviewed, showing that bagging is effective against some of the listed 
pests.\1\ Growers would have to cover individual Fuji variety apples 
with a bag to keep pests from landing on the fruit and laying eggs in 
the fruit. The bags could be removed from the apples no earlier than 3 
weeks before the harvest.
---------------------------------------------------------------------------

    \1\ For information on this research, contact the person listed 
under FOR FURTHER INFORMATION CONTACT at the beginning of this 
document.

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

[[Page 24425]]

Post-Harvest Handling of Fruit

    After being harvested, the Fuji variety apples would have to be 
handled in accordance with several specific conditions.
    We would prohibit a packinghouse in which Fuji variety apples are 
packed for export to the United States from accepting any fruit from 
orchards that are not certified to export Fuji variety apples to the 
United States during the time that fruit intended for export to the 
United States is being handled in the packinghouse. Barring the entry 
of fruit into the packinghouse from orchards that are not certified to 
export Fuji variety apples to the United States would ensure that the 
fruit intended for export is not infected or infested as a result of 
comminglement with fruit that was grown in an orchard that has not been 
subject to the same phytosanitary measures as orchards producing Fuji 
variety apples for export to the United States.
    The packinghouses would have to be kept clean and free of plant 
pests and plant debris. In the packinghouse, the fruit would have to be 
sorted, and all injured and infested fruits would have to be 
immediately removed from the packinghouse premises. Before packing, the 
fruit would again have to be inspected by the Korean Ministry of 
Agriculture to verify its freedom from the pests previously listed. If 
fruit from a grower were rejected after inspection, then subsequent 
fruit from that grower would be inspected at a higher sampling rate. 
Rejected lots would not be eligible for reinspection. A second rejected 
lot from an orchard would result in the orchard losing its 
certification for the season.
    Fruit to be exported to the United States would have to be packed 
in boxes used exclusively for export to the United States. All boxes 
would have to be marked with information identifying the grower and the 
packinghouse. These proposed requirements would ensure that inspectors 
would be able to trace the fruit back to its orchard of origin in the 
event that plant pests were detected on the fruit. Additionally, the 
Fuji variety apples would have to be loaded at the packinghouse into a 
shipping container for movement to the United States to prevent 
contamination during transportation to the port of export. This 
proposed requirement would ensure that the fruit would not be exposed 
to insect pests while en route to the port of export. Fruit not 
immediately loaded after packing would have be stored in a secure 
refrigerated warehouse until loaded. After the fruit is loaded into the 
shipping containers, the shipping containers would have to be sealed by 
the Korean Ministry of Agriculture with an official seal whose number 
is noted on the phytosanitary certificate.

Phytosanitary Certificate

    We would require the Fuji variety apples to be accompanied by a 
phytosanitary certificate issued by NPQS. The phytosanitary certificate 
would have to state that the Fuji variety apples were examined and 
found to be free from Carposina sasakii, C. niponensis, Conogethes 
punctiferalis, Tetranychus viennensis, and T. kanzawai. The 
phytosanitary certificate would also have to include the following 
declaration: ``The apples in this shipment are from certified orchards 
and comply with all the requirements in 7 CFR 319.56-2cc(e).'' The 
phytosanitary certificate would serve as NPQS's official confirmation 
that the requirements of the regulations had been met.

Inspection at the Port of First Arrival

    Fuji variety apples imported into the United States from the 
Republic of Korea under this rule would be subject to Sec. 319.56-6 of 
the regulations, which provides, among other things, that all imported 
fruits and vegetables, as a condition of entry, shall be inspected and 
shall be subject to such disinfection at the port of first arrival as 
may be required by a U.S. Department of Agriculture inspector to detect 
and eliminate plant pests. Section 319.56-6 also provides that any 
shipment of fruits and vegetables may be refused entry if the shipment 
is so infested with fruit flies or other injurious plant pests that an 
inspector determines that it cannot be cleaned or treated. The 
inspector at the port of arrival would also review the documentation, 
including the phytosanitary certificate, accompanying the fruit to 
ensure that the fruit was being imported in accordance with the 
regulations.

Trust Fund Agreement and APHIS Participation

    APHIS would be directly involved with NPQS in the monitoring and 
supervision of Fuji variety apple exports to the United States. APHIS 
would monitor orchard and export production area inspections, harvest, 
and packinghouse operations to ensure that our export requirements are 
met. The costs of APHIS' involvement during each shipping season would 
be covered by a trust fund agreement between APHIS and NPQS or an 
industry association representing Korean Fuji variety apple growers, 
packers, and exporters. Under the agreement, NPQS or the Korean 
industry association would pay in advance all estimated costs that 
APHIS expected to incur through its involvement in the required 
growing, harvest, and packinghouse operations prescribed in proposed 
Sec. 319.56-2cc(e). Those costs would include administrative expenses 
incurred in conducting the services and all salaries (including 
overtime and the Federal share of employee benefits), travel expenses 
(including per diem expenses), and other incidental expenses incurred 
by the inspectors in performing those services. The agreement would 
require NPQS or the Korean industry association to deposit a certified 
or cashier's check with APHIS for the amount of the costs, as estimated 
by APHIS. If the deposit was not sufficient to meet all costs incurred 
by APHIS, the agreement would further require NPQS or the Korean 
industry association to deposit another certified or cashier's check 
with APHIS for the amount of the remaining costs, as determined by 
APHIS, before APHIS' services would be completed. After a final audit 
at the conclusion of each shipping season, any overpayment of funds 
would be returned to NPQS or the Korean industry association or held on 
account until needed.

Executive Order 12866 and Regulatory Flexibility Act

    This proposed rule has been reviewed under Executive Order 12866. 
The rule has been determined to be significant for the purposes of 
Executive Order 12866 and, therefore, has been reviewed by the Office 
of Management and Budget.
    In accordance with 5 U.S.C. 603, we have performed an initial 
regulatory flexibility analysis, which is set out below, regarding the 
effects of this proposed rule on small entities. We do not currently 
have all the data necessary for a comprehensive analysis of the effects 
of this proposed rule on small entities. Therefore, we are inviting 
comments concerning potential effects. In particular, we need 
information on the number and kind of small entities that may incur 
benefits or costs from the implementation of this proposed rule and the 
economic effect of those benefits or costs.
    We propose to amend the regulations to add a new option for the 
importation into the United States of Fuji variety apples from the 
Republic of Korea. Although Fuji variety apples with required 
treatments from the Republic of Korea have been eligible for 
importation into the United States for several years, Fuji variety 
apples have only been shipped from the Republic of

[[Page 24426]]

Korea to Saipan and the U.S. territory of Guam.

Analysis

    This economic analysis provides a cost-benefit analysis as required 
by Executive Order 12866 and considers the potential economic effects 
of this proposed action on domestic producers of apples. It focuses on 
apple production, price, and potential effects of the proposed rule on 
producers and consumers. The possible economic effects considered 
include losses to domestic producers due to increased competition from 
imports. The magnitude of the economic effects would depend on the size 
of additional supply from the Republic of Korea and the U.S. supply and 
demand for Fuji variety apples. As explained below, we expect that any 
economic effect on U.S. producers and consumers would be small due to 
the relative sizes of the U.S. apple industry and expected import 
volumes from the Republic of Korea. In addition, although this is not 
taken into account in the analysis below, Fuji apples grown in Korea 
are a specialty fruit (they are larger than U.S. grown Fuji apples 
about the size of a softball), and we do not believe that they will be 
marketed in direct competition with U.S. grown Fuji apples. Rather, we 
expect that they will have their own market niche.
    Our analysis used information from the following sources: Pest Risk 
Assessment for Fuji Variety Apples from the Republic of Korea, APHIS, 
Biological Assessment and Taxonomic Support, December 1, 1995; APHIS, 
International Services; USDA, Agricultural Statistics 1998, Table 5-4; 
USDA FAS, Global Agricultural Trade System (data from the United 
Nations Statistical Office); USDA, National Agricultural Statistics 
Service; U.S. Department of Agriculture, 1997 Census of Agriculture, 
Volume 1, Part 51, Chapter 1, Table 43; Washington Apple Commission; 
U.S. Apple Commission; ``Production and Utilization Analysis Book (1998 
Edition),'' U.S. Apple Association; Northwest Horticultural Council; 
Yakima Growers and Shippers Association; and Washington State 
University.

Small Businesses

    The Small Business Administration (SBA) includes apple producers in 
the ``deciduous tree fruits'' category; in this category SBA defines 
small businesses as those that have annual receipts of less than 
$500,000. For U.S. apple producers, annual average apple yields range 
from 32,000 to 36,000 pounds per acre. Apple prices at the producer 
level, for the 5-year period 1993-1997, averaged 14.8 cents per pound. 
These data imply average returns of between $4,736 and $5,328 per acre. 
Given these returns, an apple producer would be considered a small 
entity if the area of production were less than 93 to 105 acres. 
According to the 1997 Census of Agriculture, of 28,100 farms producing 
apples that year, more than 95 percent had less than 100 acres. These 
farms accounted for 44 percent of apple production acreage and 38 
percent of the apple trees. U.S. Fuji variety apple producers may tend 
to have larger-than-average operations, but, like apple farms in 
general, the vast majority are small entities. Of the 28,100 U.S. farms 
producing apples in 1997, over 60 percent had apple orchards of less 
than five acres. These farms accounted for only four percent of the 
acreage and two percent of the trees. Therefore, most apple producers 
in the United States can be considered small entities.

Fuji Variety Apple Production in the United States

    Apple growers in Washington and California produce the majority of 
Fuji variety apples grown in the United States. Table 1, below, shows 
the dramatic increase in Fuji variety apple production in these two 
States from 1993 to 1997; 1998 production is expected to be four times 
1993 production. Production and plantings of Fuji variety apples in 
California in 1995 show the variety's expansion:
    <bullet> 20 percent of California's apple-bearing trees (7,315 of 
35,676 acres) were Fuji variety apple trees and
    <bullet> 62 percent of the apple trees that had not yet borne fruit 
(2,413 of 3,896 acres) were also Fuji variety apple trees.

This rapid growth is in contrast to U.S. apple production in general, 
which increases about one percent each year.

  Table 1.--Fuji Variety Apple Production in California and Washington,
                              1993 to 1998.
------------------------------------------------------------------------
                            Year                             Metric tons
------------------------------------------------------------------------
1993.......................................................       90,760
1994.......................................................      176,071
1995.......................................................      196,932
1996.......................................................      248,332
1997.......................................................      300,399
1998 (estimated)...........................................      376,795
------------------------------------------------------------------------

    U.S. apple producers initially planted Fuji variety apples in 
response to attractive export markets, in particular, high Taiwanese 
prices. A grower may earn about $150 (normal net return) per bin (about 
1,000 pounds) of Red Delicious apples (one of the most popular apple 
varieties). Growers exporting Fuji variety apples to Taiwan were 
earning about $600 per bin. However, Taiwanese demand has dropped and, 
given the widespread financial crisis in Asia, it is likely that a 
significant share of Fuji variety apples once intended for the export 
market will be diverted to the domestic market. Last year's yield of 
7.5 million 42-pound boxes of Fuji variety apples increased to 10 
million boxes this year and is expected to reach 15 million boxes by 
the year 2000. Fuji variety apples were expected to overtake the Rome 
and Granny Smith varieties to become the third-leading U.S. apple 
variety in 1998.

Apple Industries in the United States and the Republic of Korea

    Table 2 shows apple industry information for 1996. The table shows 
the quantity and value of apples (1) produced by the United States, (2) 
exported from the United States, (3) imported into the United States, 
and (4) exported from the Republic of Korea.

 Table 2.--U.S. Apple Production, Exports and Imports, and Global Korean
                           Apple Exports, 1996
------------------------------------------------------------------------
                                                  Quantity
                                                  (metric       Value
                                                   tons)       (1000$)
------------------------------------------------------------------------
U.S. utilized commercial production...........    4,690,224    1,644,226
U.S. exports..................................      590,649      381,591
U.S. imports..................................      182,961      129,165
Global Korean exports.........................        5,822        9,731
Global Korean exports as a percentage of U.S.          0.1%          0.7
 supply (production + imports--exports).......
------------------------------------------------------------------------


[[Page 24427]]

    Under the proposal, Fuji variety apple orchards in the Republic of 
Korea must be certified to be eligible to export their apples into the 
United States. According to the Korean Ministry of Agriculture, annual 
production of Fuji variety apples from certified orchards is expected 
to be about 1,920 metric tons. The Korean Ministry of Agriculture does 
not anticipate any substantial increase in this volume of production in 
the next 5 years. This expectation is reasonable, given that nearly all 
arable land in this mountainous country is already under cultivation, 
and the Republic of Korea's apple acreage has been more or less 
constant for several years. Table 3 shows the expected volume of Fuji 
variety apple exports from these orchards to the United States for the 
next 5 years. These amounts are of such negligible size that the impact 
on the U.S. apple industry and consumers would be insignificant. A 
quantity of 600 metric tons is less than 0.2 percent of U.S. Fuji 
variety apple production in 1997. U.S. consumers would benefit 
marginally only if the imports increased the net domestic supply. Given 
the large volumes of apples produced and traded by the United States, 
any impact would be extremely small. Fuji variety apple imports from 
the Republic of Korea will be competing with imports from Canada, 
Chile, New Zealand, and South Africa; these four countries supply 
approximately 97 percent of U.S. apple imports.

 Table 3.--Expected Fuji Variety Apple Exports From Korea to the United
 States, 1999 to 2003, Under the Proposed Certification and Preclearance
                                 Program
------------------------------------------------------------------------
                            Year                             Metric tons
------------------------------------------------------------------------
1999.......................................................          150
2000.......................................................          200
2001.......................................................          300
2002.......................................................          400
2003.......................................................         600
------------------------------------------------------------------------
Source: Korean Ministry of Agriculture.

    The Republic of Korea's annual apple production is about 650,000 
metric tons, and the Fuji variety comprises 77 percent of this total. 
Fuji variety apple production expected from the Republic of Korea's 
certified orchards, 1,920 metric tons per year, represents only about 
0.3 percent of the country's total apple production and 0.4 percent of 
its Fuji variety production. Therefore, export prices received for 
apples from certified orchards are not expected to have a significant 
effect on the Republic of Korea's apple production and exports overall.
    The effect of this rule on U.S. apple producers and consumers is 
expected to be negligible, given that the United States exports 
significantly more apples than it imports and the potential imports 
from the Republic of Korea are so small relative to U.S. apple 
production. In addition, apple imports comprise only a small percentage 
of U.S. supply. The market for Fuji variety apples is expanding 
rapidly. Fuji variety apples imported from the Republic of Korea are 
not likely to dampen prices or sales by domestic producers and will 
help meet the expanding demand.
    The alternative to this proposed rule would be to make no changes 
to the current Fuji variety apple import regulations. Currently, we 
allow the importation of Fuji variety apples into the United States 
from the Republic of Korea or Japan when the apples undergo cold 
treatment and fumigation. After consideration, we rejected this 
alternative since there appears to be no pest risk reason to maintain 
the prohibition on untreated Fuji variety apples from the Republic of 
Korea, in light of the safeguards that would be applied to their 
importation.
    The proposed changes to the regulations would result in new 
information collection or recordkeeping requirements, as described 
below under the heading ``Paperwork Reduction Act.''

Executive Order 12988

    This proposed rule would allow Fuji variety apples to be imported 
into the United States from the Republic of Korea. If this proposed 
rule is adopted, State and local laws and regulations regarding Fuji 
variety apples imported under this rule would be preempted while the 
fruit is in foreign commerce. Fresh Fuji variety apples are generally 
imported for immediate distribution and sale to the consuming public 
and would 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. If this proposed rule is 
adopted, 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 section 3507(d) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the information collection or 
recordkeeping requirements included in this proposed rule have been 
submitted for approval to the Office of Management and Budget (OMB). 
Please send written comments to the Office of Information and 
Regulatory Affairs, OMB, Attention: Desk Officer for APHIS, Washington, 
DC 20503. Please state that your comments refer to Docket No. 97-065-1. 
Please send a copy of your comments to: (1) Docket No. 97-065-1, 
Regulatory Analysis and Development, PPD, APHIS, suite 3C03, 4700 River 
Road Unit 118, Riverdale, MD 20737-1238, and (2) Clearance Officer, 
OCIO, USDA, room 404-W, 14th Street and Independence Avenue, SW., 
Washington, DC 20250. A comment to OMB is best assured of having its 
full effect if OMB receives it within 30 days of publication of this 
proposed rule.
    Our regulations currently allow Fuji variety apples grown in the 
Republic of Korea to be imported into the United States after they have 
been cold treated and fumigated. In this document, we are proposing to 
amend our regulations to allow Fuji variety apples grown in certified 
orchards within approved production areas in the Republic of Korea to 
be imported into the United States, without treatment, under conditions 
designed to prevent the introduction of the peach fruit moths 
(Carposina sasakii and C. niponensis), the yellow peach moth 
(Conogethes punctiferalis), the fruit tree spider mite (Tetranychus 
viennensis), and the kanzawa mite (T. kanzawai) into the United States.
    These proposed amendments would require the use of several 
information collection activities, including a phytosanitary 
certificate and a trust fund agreement. We are asking OMB to approve 
our use of these information collections in connection with our efforts 
to ensure that Fuji variety apples from the Republic of Korea do not 
pose a risk of introducing the aforementioned pests into the United 
States.
    We are soliciting comments from the public (as well as affected 
agencies) concerning our proposed information collection and 
recordkeeping requirements. These comments will help us:
    (1) Evaluate whether the proposed information collection is 
necessary for the proper performance of our agency's functions, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of our estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and

[[Page 24428]]

    (4) Minimize the burden of the information collection on those who 
are to respond (such as through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses).
    Estimate of burden: Public reporting burden for this collection of 
information is estimated to average .75 hours per response.
    Respondents: Korean plant health authorities; growers, exporters, 
and shippers of Fuji variety apples in the Republic of Korea; and U.S. 
importers of Fuji variety apples.
    Estimated annual number of respondents: 30.
    Estimated annual number of responses per respondent: 8.53.
    Estimated annual number of responses: 256.
    Estimated total annual burden on respondents: 192 hours.
    Copies of this information collection can be obtained from: 
Clearance Officer, OCIO, USDA, room 404-W, 14th Street and Independence 
Avenue, SW., Washington, DC 20250.

List of Subjects in 7 CFR Part 319

    Bees, Coffee, Cotton, Fruits, Honey, Imports, Logs, Nursery Stock, 
Plant diseases and pests, Quarantine, Reporting and recordkeeping 
requirements, Rice, Vegetables.
    Accordingly, we propose to amend 7 CFR part 319 as follows:

PART 319--FOREIGN QUARANTINE NOTICES

    1. The authority citation for part 319 would continue to read as 
follows:

    Authority: 7 U.S.C. 150dd, 150ee, 150ff, 151-167, 450, 2803, and 
2809; 21 U.S.C. 136 and 136a; 7 CFR 2.22, 2.80, and 371.2(c).

    2. Section 319.56-2cc would be amended as follows:
    a. In paragraph (a), by removing the words ``The apples'' and 
adding the words ``Except when imported under the requirements in 
paragraph (e) of this section, the apples'' in their place.
    b. By adding a new paragraph (e) to read as set forth below.


Sec. 319.56-2cc  Administrative instructions governing the entry of 
Fuji variety apples from Japan and the Republic of Korea.

* * * * *
    (e) Systems approach requirements. Fuji variety apples may be 
imported from the Republic of Korea into the United States only under a 
permit issued in accordance with Sec. 319.56-4 and only under the 
following conditions:
    (1) Growing and harvest conditions. The apples must have been grown 
in a certified orchard in an APHIS-approved export production area by 
growers registered with the Korean Ministry of Agriculture. APHIS and 
the Korean Ministry of Agriculture will inspect orchards and production 
areas to certify that the Fuji variety apples were grown according to 
the following conditions:
    (i) The export production area must be surrounded by a 200-meter-
wide buffer zone. Only fruit trees of the malus species (apple or 
crabapple) may be grown in the export production area and buffer zone. 
Fruit trees of the Prunus species (peach, plum, apricot, cherry, Prunus 
tomentosa, etc.), which are major hosts of Tetranychus viennensis, must 
not be grown in the export production area or buffer zone. No fruit 
grown in the buffer zone may be imported into the United States. If 
pests of quarantine significance are found in the buffer zone, all 
orchards within 200 meters of the detection site will be removed from 
the export program.
    (ii) Field inspections for signs of pest infestation and for 
compliance with the requirements of this section must be conducted by 
the Korean Ministry of Agriculture and APHIS during the growing season. 
The Korean Ministry of Agriculture and APHIS will conduct field 
inspections after bagging and prior to harvest to detect signs of pest 
infestation. If pests of quarantine significance are found during the 
inspections, the orchard will not be certified and, therefore, will not 
be included in the export program.
    (iii) To ensure that Fuji variety apples exported to the United 
States are not infested with peach fruit moths (Carposina sasakii and 
C. niponensis), the yellow peach moth (Conogethes punctiferalis), the 
fruit tree spider mite (Tetranychus viennensis), and the kanzawa mite 
(T. kanzawai), registered growers must comply with the phytosanitary 
measures agreed to by APHIS and the Korean Ministry of Agriculture, 
including bagging the apples on the trees to reduce the opportunity for 
pests to attack the fruit during the growing season; applying 
pesticides to reduce the mite, rust, and other pest populations; and 
controlling weeds to reduce mite populations. The bags must remain on 
the apples until 3 weeks prior to the harvest.
    (2) After harvest. After harvest, the Fuji variety apples must be 
handled in accordance with the following conditions:
    (i) During the time that a packinghouse is used to prepare Fuji 
variety apples for export to the United States, the packinghouse may 
accept fruit only from orchards that meet the requirements of paragraph 
(e)(1) of this section.
    (ii) The packinghouses must be kept clean and free of plant pests 
and plant debris.
    (iii) In the packinghouse, the fruit must be sorted and all injured 
and infested fruits must be immediately removed from the packinghouse 
premises. Before packing, the fruit must again be inspected by the 
Korean Ministry of Agriculture to verify its freedom from peach fruit 
moths (Carposina sasakii and C. niponensis), the yellow peach moth 
(Conogethes punctiferalis), the fruit tree spider mite (Tetranychus 
viennensis), and the kanzawa mite (T. kanzawai). If fruit from a grower 
is rejected after inspection, then subsequent fruit from that grower 
will be inspected at a higher sampling rate. Rejected lots are not 
eligible for reinspection and must be immediately removed from the 
packinghouse premises. A second rejected lot from an orchard will 
result in the orchard losing its certification for the season.
    (iv) Fruit to be exported to the United States must be packed in 
boxes used exclusively for export to the United States. All boxes must 
be marked with information identifying the grower and the packinghouse. 
The boxes must be loaded at the packinghouse into a shipping container 
for movement to the United States to prevent contamination during 
transportation to the port of export. Fruit not immediately loaded 
after packing must be stored in a secure refrigerated warehouse until 
loaded. After the fruit is loaded into the shipping containers, the 
shipping containers must be sealed by the Korean Ministry of 
Agriculture with an official seal whose number is noted on the 
phytosanitary certificate.
    (3) Certificates. Each shipment of apples must be accompanied by a 
phytosanitary certificate issued by the Korean Ministry of Agriculture 
stating that the Fuji variety apples were examined and found to be free 
from Carposina sasakii, C. niponensis, Conogethes punctiferalis, 
Tetranychus viennensis, and T. kanzawai. The phytosanitary certificate 
must include the following additional declaration: ``The apples in this 
shipment are from certified orchards and comply with all the 
requirements in 7 CFR 319.56-2cc(e).''


[[Page 24429]]


    Done in Washington, DC, this 20th day of April 2000.
Bobby R. Acord,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 00-10388 Filed 4-25-00; 8:45 am]
BILLING CODE 3410-34-U