### United States

Department of Agriculture Animal and Plant Health Inspection Service September 2013 **Analysis in Support of Certification that the** 

**Rule will not have a Significant Economic Impact on a Substantial Number of Small**  **Entities**
**Final Rule**  **APHIS -**  **2011 -**  **0085 RIN 0579**  **- AD76**  **Consolidation of Permit Procedures; Denial and Revocation Permits** 

Policy & Program Development Policy Analysis & Developmenti



### Summary
APHI S is establish ing regulations that contain and consolidate generall y applicable requirements for obtaining a permit to import or move interstate plants and plant products. The requirements contained in the new 7 CFR § 319.7 will provide applicants more detailed informatio n on the information required for a permit, the application process, and reasons why a permit may

be denied or revoked. APHIS’ goal is to ensure that the provisions for approving, denying, or cancelling a permit are objective and clear, while upholding APHI S’s mission of reducing the risk of dissemination of plant pests and noxious weeds

. To that end, APHIS will use the permit process to establish a legal agreement with the recipient of a permit that provides clear and continuous accountability

. Entities that may be affected by the rule are importers of restricted plants and plant products, including flowers, nursery stock, fruits and vegetables , cotton, sugarcane, logs, packing materials, other manufactured wood articles, and coffee, as well as importers of plants designated as noxious weeds, honeybees and honey bee semen, and regulated articles allowed entry on a temporary

basis, such as for transshipment

. While nearl y all of the entities that may be affected by the rule are small, none of the effects would be economicall y significant. The rule will make the permit procedures more transparent and easier to use, enable APHI S to evaluate a permit allocation more quickl y and thoroughl y, and allow for more efficient control of the issuance of permits and entry

of regulated articles. 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 entitie s.ii



### Table of Contents Summary

................................ ................................ ................................ .............................. i Introduction

................................ ................................ ................................ ......................... 1 Potential Impact on Small Entities

................................ ................................ ...................... 21



### Introduction This analy sis provides the basis, as required by the Regulatory

Flexibility

Act, for certification by

the APHIS Administrator that the rule will not have a significant economic impact on a substantial number of small entities. Under the Plant Protection Act (PPA), the Secretary of Agriculture may prohibit or restrict the importation, entry , exportation or movement in interstate commerce, of any plant, plant product, noxious weed, or article if the Secretary determines that the prohibition or restriction is necessary

to prevent the introduction or dissemination of plant pests or noxious weed s. The PPA further allows the Secretary to issue regulations to implement these prohibitions and restrictions, including those that require that importation or interstate movement of plants, plant products, noxious weeds, or other regulated articles be ac companied by a written permit. These regulations are administered and enforced b y the Plant Protection and Quarantine program of APHIS. APHI S is establish ing regulations that contain and consolidate generall y applicable requirements for obtaining a permit to import or move interstate plants and plant products. The requirements contained in the new 7 CFR § 319.7 will provide applicants more detailed information on the information required for a permit, the application process, and reasons why a permit may be denied or revoked. APHIS’ goal is to ensure that the provisions for approving, denying, or cancelling a permit are objective and clear, while upholding APHI S’s mission of reducing the risk of dissemination of plant pests and noxious weeds

. To that en d, APHIS will use the permit process to establish a legal agreement with the recipient of a permit that provides clear and continuous accountability

.2



### Potential Impact on Small Entities
Entities that may

be affected by

the rule are importers of lumber and ply wood (NAICS 423310), importers of other miscellaneous durable goods, such as logs, timber and packing material (NAI CS 423990), importers of drugs, druggists’ supplies, herbs and weeds (NAICS 424210), importers of flowers, nursery stocks, and florists’ s upplies (NAICS 424930) , importers of fresh fruits and vegetables (NAICS 424480) , importers of other grocery and related products, such as coffee (NAICS 424490), importers of grains and field beans (NAICS 424510), importers of other farm product raw material, such as raw cotton, sugarcane, honey bees and honey

bee semen (NAI CS 424590), and importers of farm supplies (NAICS 424910)

. The Small Business Administration ( SBA) has established guidelines for determining which establishments are to be considered smal l. Imports/export merchants, agents and brokers are identified within the broader wholesaling trade sector. A firm classified within any of these NAI CS wholesal e industry categories is considered small if it employs not more than 100 persons . Based on information from the 2007 Economic Census, as shown in Table 1, the majority of entities that comprise these industries have fewer than 100 employees. While nearly

all of the entities that may be affected by

the rule are small, none of the effects would be economically significant. The rule would make the permit procedures more transparent and easier to use, enable APHI S to evaluate a permit allocation more quickly and thoroughl y, and allow for more efficient control of the issuance of permits and entry of regulated articles. Under these circumstances, the APHIS’ Administrator has determined that this action will not have a significant economic impact on a substantial number of small entities. Table 1 . Prevalence of small entities in certain industries that may be affected by the rule, 2007 Industry Number Number of Number of Number of Small

- entity3

Wholesale Merchants of All Establishments Establishments

that operated the entire year Establishments

with more than 100 employees that operated the entire year Establishments with

less than 100 employees that operated the entire year Establishments as a

percentage of those that operated the entire year Lumber, plywood, millwork, wood panel (NAICS 423310) 8, 984 8,303 2,123 6,180 74%
Other miscellaneous durable goods, construction material logs, timber, packing material (NAICS 423990) 10,270 8,764 532 8,232 94%

Drugs, druggists’ supplies, b otanical drugs, herbs, weeds, (NAICS 424210) 8,535 7,700 2,321 5,379 70%
Fresh Fruits and Vegetables (NAICS 424480) 5,074 4,437 230 4,207 95%
Other Grocery and related products, ( coffee ) (NAICS 424490) 13,068 11,763 3,286 8,477 72%

Grain s and Field Beans (NAICS 424510) 4,851 4,680 1,238 3,442 74% Other farm product raw material (raw cotton, sugarcane, honey bees , honeybee semen ) (NAICS 424590) 765 663 43 620 94%
Farm supplies (NAICS 424910) 7,738 7,199 61 7,138 99 % Flower, Nursery Stock, and Florists’ Supplies (NAICS 424930) 4,218 3,601 67 3,534 98% Source: 2007 Economic Census. Sector 42: Wholesale Trade: Subject Series

- Establishment & Firm Size: Summary Statistics by Employment size of establishments for the United States. U.S. Census Bureau, American FactFinder, ID ECON742SSSZ2. http ://factfinder2.census.gov/faces/tableservices/jsf/pages/productview .xhtml?pid=ECN_2