United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

December

2012

Initial Regulatory Flexibility Analysis

Proposed Rule 

APHIS-2011-0060

RIN 0579-AD59

Importation of Fresh Citrus Fruit from 

Uruguay, including Citrus Hybrids and 

Fortunella spp., into the Continental United 

States

Policy & Program Development

Policy Analysis & Development
i

Summary

The proposed rule is in response to a request from the national plant protection 

organization of Uruguay for USDA authorization to allow the importation of specified fresh 

citrus varieties into the continental United States. U.S. entities that may be impacted by imports 

of fresh citrus from Uruguay are producers and packers of fresh oranges, lemons, tangerines, and

mandarin varieties. Fresh oranges (including Navel, Valencia, Temple and other varieties) are 

produced in California (87 percent), Florida (11 percent), and Texas (2 percent). Lemons are 

produced in California (97 percent) and Arizona (3 percent). Tangerines and mandarins 

(including tangelos and tangors) are produced in California (76 percent), Florida (23 percent), 

and Arizona (less than 1 percent). Louisiana commercially produces a variety of Satsuma that is 

mostly sold locally. 

Impacts of the proposed rule on U.S. entities would be dependent upon the quantity of 

fresh citrus imported from Uruguay and the substitutability of these fresh citrus varieties for 

U.S.-grown citrus varieties. Historically, Uruguay has produced less than 3 percent of total U.S. 

citrus production, including processed citrus, and total exports of fresh citrus from Uruguay to 

world markets have been equivalent to less than 3 percent of the combined U.S. production of

fresh orange, lemon, tangerine and mandarin varieties. We anticipate that exports directed to the 

U.S. domestic market would be a small fraction of Uruguay’s total exports of these fresh citrus 

fruits based on availability and currently established export markets in Europe and Russia. 

Given the small quantity expected to be imported from Uruguay, it is very unlikely that there 

would be a significant impact on the U.S. markets for fresh oranges, lemons, tangerines and 

mandarin varieties. Given the sizable amounts of fresh lemons and mandarins, for example, 

imported by the United States and the fact that the time of year that citrus is produced in 
ii

Uruguay is the same as that for current South American sources, we expect that any product 

displacement that may occur because of the proposed rule would be largely borne by other 

foreign suppliers of fresh citrus. 

The majority of citrus producers and packinghouses are considered small entities. 

APHIS welcomes informed public comment in order to better determine the extent to which U.S. 

small entities may be affected by this proposed rule. 
Table of Contents

Summary.............................................................................................................................. i

Introduction......................................................................................................................... 1

Initial Regulatory Flexibility Analysis................................................................................ 1

Reasons Action is Being Considered.............................................................................. 1

Objectives of and Legal Basis for the Rule .................................................................... 2

Potentially Affected Small Entities................................................................................. 3

Citrus Production and Trade ....................................................................................... 4

Prevalence of Small Entities....................................................................................... 8

Projected Reporting, Recordkeeping, and Other Compliance Requirements............... 11

Duplication, Overlap, or Conflict with Existing Rules and Regulations...................... 11

Alternatives to minimize Significant Economic Impacts of the Rule........................... 12
1

Introduction

Uruguay has requested USDA authorization of market access for commercial shipments 

of its fresh citrus into the continental United States. In response to this request, the APHIS 

division of Plant Protection and Quarantine (APHIS PPQ) has evaluated a pest risk assessment 

(PRA) and a risk management analysis (RMA), and is proposing to allow the importation of 

commercial shipments of fresh citrus from Uruguay. The purpose of the proposed rule is to 

amend the current regulations to allow the importation of specified commercial fresh citrus 

varieties into the continental United States under specified conditions of entry to protect against 

the introduction of quarantine pests. Section 319.56-1 of Title 7 of the Code of Federal 

Regulations grants the regulatory authority for imposing phytosanitary requirements on the 

importation of fruits and vegetables from foreign suppliers into the United States. 

As required by the Regulatory Flexibility Act, we present the initial regulatory flexibility

analysis in which the potential effects of the proposed rule on small businesses, small 

organizations and small governmental jurisdictions are evaluated. 

Initial Regulatory Flexibility Analysis

The Regulatory Flexibility Act requires agencies to evaluate the potential effects of their 

proposed and final rules on small businesses, small organizations and small governmental 

jurisdictions. Section 603 of the Act requires agencies to prepare and make available for public 

comment an initial regulatory flexibility analysis that describes expected impacts of a proposed 

rule on small entities.

Reasons Action is Being Considered

The national plant protection organization (NPPO) of Uruguay has requested USDA 

authorization to allow the importation into the continental United States of sweet oranges, 4 
2

species of mandarins, citrus hybrids, and 2 species of the citrus-related genus Fortunella. In 

response to this request, APHIS Plant Protection and Quarantine conducted an assessment of the 

plant pest risks associated with the importation of these fresh fruits from Uruguay into the 

continental United States.1 APHIS has determined that the current prohibition on their

importation is unnecessary. Any risks posed to U.S. agriculture by entry of these commodities

would be successfully mitigated by a systems approach designed to prevent a number of pests, 

including fruit flies, from following the pathway. The systems approach includes provisions for 

registration of production areas and packinghouses, orchard sanitation, fruit fly trapping, 

treatment and inspection, and a phytosanitary certificate with an additional declaration certifying 

the commercial shipment is free from all quarantine pests and has been produced in accordance 

with the systems approach.

Objectives of and Legal Basis for the Rule

The objective of the proposed rule is to amend the current regulations under Title 7 

§ 319.56 of the Code of Federal Regulations (CFR) to allow the importation of fresh citrus fruit 

from Uruguay, including citrus hybrids and Fortunella spp., into the continental United States. 

This section of the CFR grants regulatory authority for setting phytosanitary requirements for the 

importation of fruits and vegetables into the United States. The Plant Protection Act (Public Law 

106-224, June 20, 2000) is the statutory basis for 7 CFR 305 and 319. It authorizes the Secretary

of Agriculture to implement programs and policies designed to prevent the introduction and 

spread of plant pests and diseases. 

 

1 USDA APHIS PPQ CPHST, “Importation of Fresh Citrus Fruit, including Sweet Orange (Citrus sinensis (L.) 

Osb.), Lemon (C. limon (L.) Burm.), Mandarin (C. reticulata Blanco, C. clementina Hort. ex Tan., C. deliciosa Ten., 

C. unshiu (Mak.) Marc.), Citrus Hybrids, and the Citrus-Related Genus Fortunella (F. japonica Thunb., F. 

margarita (Lour.) Swing.), from Uruguay into the Continental United States,” February 2011.
3

Potentially Affected Small Entities

The United States commercially produces oranges, lemons and specialty mandarin 

varieties of Citrus reticulata, such as tangerines and Satsuma mandarins. Fresh oranges, 

including Navel, Valencia, Temple and other varieties, are produced in California (87 percent), 

Florida (11 percent), and Texas (2 percent). Lemons are produced in California (97 percent) and 

Arizona (3 percent). Tangerines and mandarins (including tangelos and tangors) are produced in 

California (76 percent), Florida (23 percent), and Arizona (less than 1 percent). Louisiana 

commercially produces a variety of Satsuma that is mostly sold locally. 

 Effects of the proposed rule on U.S. entities would depend on (1) the quantity of fresh 

citrus imported from Uruguay supplied to the continental United States, and (2) the 

substitutability of these fresh citrus varieties in the continental United States for similar citrus 

varieties. 

While the possibility of substitution of fresh citrus varieties imported from Uruguay for 

U.S.-grown citrus varieties exists, we anticipate any price effects would be negligible. We 

believe that the proposed rule would have little effect for U.S. producers of fresh orange, lemon, 

tangerine, and mandarin varieties, given that, historically, total exports of fresh citrus from 

Uruguay to world markets have been equivalent to less than 3 percent of U.S. production of fresh 

oranges, lemons, tangerines and mandarins. We present here data on U.S. fresh orange, lemon,

tangerine and mandarin production and trade, before describing potentially affected small 

entities.
4

Citrus Production	and	Trade

Fresh Oranges

The United States is traditionally a net exporter of fresh oranges. U.S. fresh orange 

production, net imports, and domestic supply, 2005-06 to 2010-11, are shown in table 1. In the 

2011-12 season,

2

the United States imported 263 million pounds of fresh oranges, primarily from 

Chile (42 percent), South Africa (33 percent), Mexico (12.8 percent), and Australia (9.5 percent). 

During the same season, the United States exported approximately 1,542.5 million pounds of 

fresh oranges. South Korea was the largest importer of U.S. fresh oranges,

3

accounting for 

approximately 26 percent of U.S. exports, followed by Canada (20 percent), Japan (15 percent), 

Hong Kong (12 percent), and China (7 percent).

4

 

Table 1. U.S. Fresh Orange Production, Net Imports, and Domestic Supply, Seasons 

2005-06 through 2010-11

Season Productiona Net Importsb Domestic 

Supplyc

------------ thousand pounds ------------

2005-06 4,104.0 (1,039.8) 3,064.2

2006-07 2,754.0 (501.3) 2,252.7

2007-08 4,208.0 (1,181.3) 3,026.7

2008-09 3,674.0 (888.6) 2,785.4

2009-10 4,242.0 (1,238.8) 3,003.2

2010-11 4,538.0 (1,452.5) 3,085.5

Source: USDA Economic Research Service.

a

Excludes processed fruit.

b Net imports equals imports minus exports

c U.S. production (excluding processed utilization) plus net imports.

 

2

Season is year ending July 31st.

3

Surpassing Canada as the leading importer of fresh oranges.

4 U.S. Census Bureau, as reported by Global Trade Information Services, Inc.
5

About 70 percent of U.S. fresh orange production was consumed domestically in the 

2011-12 season.

5

 While fresh utilization of oranges accounts for only 4 percent of total orange 

production in Florida, fresh utilization of California and Texas production accounts, on average, 

for 82 and 87 percent, respectively, of total production each season.

6 U.S. grower revenue from 

fresh orange production in 2011-12 was approximately $860.9 million.7 Imports average 

approximately 5 percent of domestic supply each season.

According to 2007 Census of Agriculture data, there were a total of 12,116 orange 

production operations in the United States in 2007, of which 11,573 were located within the 

continental United States.8 The remaining 543 orange producing operations were located in 

Hawaii. 

Fresh Lemons

The United States is also a net exporter of fresh lemons. U.S. fresh lemon production, net

imports, and domestic supply are shown in table 2. In the 2011-12 season, the United States 

imported 126.6 million pounds of fresh lemons, with nearly 60 percent supplied by Mexico and 

35 percent from Chile. That same season, the United States exported approximately 201.5

million pounds of fresh lemons. Japan and Canada are the largest importers of U.S. fresh 

lemons, accounting for approximately 40.3 and 32.5 percent of U.S. exports, respectively.

9

 

 

5 The proportion of U.S. fresh orange production consumed domestically is the ratio of utilized fresh production less 

exports divided by utilized fresh production. Data Source: USDA ERS Briefing Room, Fruit and Tree Nut 

Yearbook, 2010.

6

Fresh utilization refers to the proportion of total fruit sold and/or consumed as fresh citrus. The remainder is 

considered to be utilized on the processed market.

7 National Agricultural Statistics Service (NASS), USDA, “Citrus Fruits 2012 Summary,” September 2012.

8 The number of orange farms in the United States, as reported by the 2007 Census of Agriculture, includes 

operations that produced oranges for processed utilization; in Florida, the majority of oranges are processed.

9 U.S. Census Bureau, as reported by Global Trade Information Services, Inc.
6

Table 2. U.S. Fresh Lemon Production, Net Imports, and Domestic Supply, Seasons 

2005-06 through 2010-11

Season Productiona Net Importsb Domestic 

Supplyc

------------ million pounds ------------

2005-06 1,372.1 (137.7) 1,234.4

2006-07 980.0 (136.1) 843.9

2007-08 789.0 (192.1) 596.9

2008-09 1,065.1 (108.0) 957.0

2009-10 968.0 (106.6) 861.4

2010-11 1,202.0 (125.2) 1076.8

2011-12 1,310.0 (74.9) 1,235.1

Data Source: USDA ERS Briefing Room, Fruit and Tree Nut Yearbook, 2010.

a

Excludes processed fruit.

b Net imports equals imports minus exports

c U.S. production (excluding processed utilization) plus net imports.

About 89 percent of U.S. fresh lemon production was consumed domestically in 2010.

10

 

U.S. imports of fresh lemons serve to supplement domestic production to meet domestic demand. 

Fresh utilization of U.S. lemon production accounts, on average, for 58 percent of total 

production each season with the remaining fruit being processed. U.S. grower revenue from 

fresh lemon production in 2009-10 was approximately $380.6 million.11 Imports average 

approximately 10 percent of domestic supply each season.

According to 2007 Census of Agriculture data, there were a total of 2,607 lemon 

operations in the United States in 2007, of which 2,201 were located within the continental 

United States.12 The remaining 406 lemon operations were located in Hawaii. 

 

10 The proportion of U.S. fresh lemon production consumed domestically is the ratio of utilized fresh production less 

exports divided utilized fresh production. Data Source: USDA ERS Briefing Room, Fruit and Tree Nut Yearbook, 

2010.

11 National Agricultural Statistics Service (NASS), USDA, “Citrus Fruits 2010 Summary,” September 2010.

12 The number of lemon farms in the United States, as reported by the 2007 Census of Agriculture, includes 

operations that produced lemons for processing.
7

Tangerines and Mandarins

The United States is a net importer of mandarins (including Satsumas and tangerines), 

Clementines and other citrus hybrids. U.S. tangerine production, net imports, and domestic 

supply are shown in table 3. In 2010, the United States imported 265.9 million pounds of 

mandarins (including Satsumas and tangerines), Clementines, and other citrus hybrids with 

approximately 38 percent, 24 percent, 13 percent, and 10 percent arriving from Spain, Chile, 

Morocco, and Peru, respectively. That same year, the United States exported approximately 76.2

million pounds of mandarins (including Satsumas and tangerines). Canada is the largest 

importer of U.S. fresh mandarins, accounting for 67 percent of U.S. exports. The second largest 

importer of U.S. mandarin varieties is Japan, accounting for approximately 20 percent.13

About 77 percent of U.S. fresh mandarin production was consumed domestically in 

2010.14 The United States relies on imports of tangerines and mandarins to supplement domestic 

production in satisfying domestic demand. U.S. mandarin and tangerine production is primarily

sold as fresh fruit with fresh utilization accounting, on average, for 76 percent of the total 

production. U.S. grower revenue from fresh tangerine production in 2009-10 was approximately

$268.4 million.15 Imports average approximately 25 percent of domestic supply each season.

Table 3. U.S. Fresh Tangerine Production, Net Imports, and Domestic Supply, Seasons 

2005-06 through 2009-10 

Season Productiona Net Imports Domestic 

Supplyb

------------ million pounds ------------

2005-06 622.0 181.5 803.5

 

13 U.S. Census Bureau, as reported by Global Trade Information Services, Inc.

14 The proportion of U.S. fresh mandarin production consumed domestically is the ratio of utilized fresh production 

less exports divided by utilized fresh production. Data Source: Foreign Agricultural Service, Production, Supply, 

and Distribution Online.

15 National Agricultural Statistics Service (NASS), USDA, “Citrus Fruits 2010 Summary,” September 2010.
8

2006-07 540.0 232.4 772.4

2007-08 796.0 144.4 940.0

2008-09 746.0 221.9 967.9

2009-10 959.3 192.8 1,152.2

Data Source: USDA ERS Briefing Room, Fruit and Tree Nut Yearbook, 2010.

a

Excludes processed fruit.

b Net imports equals imports minus exports.

c U.S. production (excluding processed utilization) plus net imports.

According to 2007 Census of Agriculture data, there were a total of 1,976 tangerine 

operations in the United States in 2007, of which 1,676 were located within the continental 

United States.16 The remaining 300 tangerine operations were located in Hawaii. 

Prevalence	of	Small	Entities			

The proposed rule may affect domestic producers of fresh citrus, as well as firms 

responsible for packing and shipping these commodities to domestic and foreign markets. Citrus 

producers that may be affected are expected to be small, based on 2007 Census of Agriculture

data and Small Business Administration (SBA) small-entity standards for entities classified 

within the farm categories of Orange Groves (NAICS 111310) and Citrus (except Orange) 

Groves (NAICS 111320). SBA classifies producers in these categories with total annual sales of 

not more than $750,000 as small entities.

APHIS does not have information on the size distribution of U.S. citrus producers, but 

according to 2007 Census of Agriculture, there were a total of 98,281 Fruit and Tree Nut farms 

(NAICS 1113) in the United States in 2007.17 Of this number, nearly 94 percent had annual 

 

16 The number of tangerine farms in the United States, as reported by the 2007 Census of Agriculture, includes 

operations that produced tangerines for processing.

17 This number includes farms producing citrus and those specifically producing lemons.
9

sales in 2007 of less than $500,000, which is well below the SBA’s small-entity threshold of 

$750,000.18 

According to the 2007 Census of Agriculture Summary and State Data report, that year 

there were a total of 15,658 citrus farms in the United States. We describe the prevalence of 

small farms among citrus producers using the example of U.S. lemon production. In 2007, there 

were 2,607 lemon farms (79 percent in California and Arizona, and the remaining in Florida, 

Hawaii, Louisiana, and Texas).

19

 There is little evidence to suggest that many of these producers 

operate on a large scale. For example, there were 49 lemon farms in Florida, according to the 

2002 Census of Agriculture.

20

 During that same year, Florida reported the total value of Florida 

lemons at approximately $2.1 million, with bearing acreage estimated at 800 acres, yielding 

average revenues per farm of less than $43,000.

21

 (The Florida Agricultural Statistic Service 

discontinued lemon estimates after the 2002-03 season; however, the 2007 Census of Agriculture 

Summary and State Data report indicates a 22 percent increase in lemon farms from the 2002 to 

the 2007 Census of Agriculture.)

While cash receipts by size for lemon farms were not reported in the 2007 Census of 

Agriculture, it is reasonable to assume that most of the 2,607 domestic lemon farms qualify as 

small entities. This conclusion holds as well for the producers of the other citrus species and 

varieties. 

In the case of packinghouses, establishments engaged in Postharvest Crop Activities 

(NAICS 115114) are also predominantly small. The SBA small-entity standard for 

 

18 Source: SBA and 2007 Census of Agriculture.

19 National Agricultural Statistics Service (NASS), United States Department of Agriculture (USDA), “United 

States: Summary and State Data, Volume 1” 2007 Census of Agriculture, Issued February 2009.

20National Agricultural Statistics Service (NASS), United States Department of Agriculture (USDA), “United 

States: Summary and State Data, Volume 1” 2002 Census of Agriculture, Issued June 2004.

21 Florida Agricultural Statistic Service (FASS), National Agricultural Statistics Service (NASS), United States 

Department of Agriculture (USDA), “Citrus Summary 2006-07,” February 2008.
10

packinghouses is $6.5 million or less in annual receipts. In Florida, there were at least 142 

packinghouses registered in 2007.22 While the classification of these establishments by sales 

volume is not available, it is estimated that approximately 35 of the 142 registered 

packinghouses are large commercial citrus packinghouses with the remainder being small 

establishments known as gift packers in Florida. The Fresh Shippers Report, issued by Florida’s

Citrus Administrative Committee, details quantities of fresh citrus shipments of the top 35 to 50 

shippers of each season.23 At least 95 percent of Florida fresh citrus shipments are packed by the 

top 35 to 50 packinghouses in the State.24 During the 2010-11 citrus season, annual sales for at 

least 21 of the top 35 shippers (60 percent) were below the SBA size standard of $6.5 million. It 

is estimated that at least 85 percent of Florida’s citrus packers, including small gift packers, 

would be considered small according to the SBA size standard.

In 2010, there were 74 packinghouses in California.25 Traditionally, approximately 60 

percent of these packinghouses market the final product through such cooperatives as Sunkist 

Growers, Inc., the Central California Orange Growers Cooperative, and DNE World Fruit 

Sales.26 The remaining packinghouses market their final product independently. We do not have 

a definitive number of small-entity packinghouses that may be affected by this rule, and 

welcome public comment on their number and size, and how they may be affected.

 

22 Florida Department of Agriculture and Consumer Services, Division of Fruit & Vegetable Inspection. 

<http://www.doacs.state.fl.us/fruits>

23 “Fresh Shippers Report: 2010-11 Season Through July 31, 2011,” Citrus Administrative Committee, August 19, 

2011. <http://www.citrusadministrativecommittee.org/> 

24 Ibid.

25 California Citrus Mutual Report to the CDFA Board- June 30, 2010. Bob Blakely, Director of Industry 

Relations.

<http://www.californiacitrusmutual.com/pdf/CDFA_Board_Report_6302010.pdf > Date accessed: September 9, 

2011.

26 United States International Trade Commission (USITC), “Conditions of Competition for Certain Oranges and 

Lemons in the U.S. Fresh Market, Inv 332-469,” Publication 3863, Washington, D.C., July 2006.
11

Depending on the substitutability of oranges, lemons, mandarins and citrus hybrid 

imports from Uruguay for U.S.-grown varieties, U.S. entities could be affected by the proposed 

rule. As indicated, the majority of producers that could be affected are small entities. However, 

even if all imports from Uruguay were to directly replace consumption of U.S.-grown citrus 

varieties in the continental United States, the effect on U.S. producers would be relatively minor. 

Under such a scenario, imports of fresh citrus from Uruguay would displace less than 3 percent 

of fresh citrus varieties produced by U.S. operations in 2009-10. Potential displacement is even 

less likely when factoring in Uruguay’s exports to established markets in Europe and Russia.

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 because of the proposed rule would be 

largely borne by other foreign suppliers of fresh citrus, such as Chile, given the sizable amounts 

of lemons and mandarins, for example, imported by the United States and the fact that the time 

of year that citrus is produced in Uruguay is the same as that for current South American sources. 

We welcome public comment that would improve our understanding of possible effects of the 

proposed rule for U.S. small entities.

Projected Reporting, Recordkeeping, and Other Compliance 

Requirements

Reporting and recordkeeping requirements associated with the proposed rule are 

discussed in the rule under the heading "Paperwork Reduction Act."

Duplication, Overlap, or Conflict with Existing Rules and Regulations

APHIS has not identified any duplication, overlap, or conflict of the proposed rule with 

other Federal rules.
12

Alternatives to minimize Significant Economic Impacts of the Rule

Based on our review of available information, APHIS does not expect the proposed rule 

to have a significant economic impact on small entities. We have prepared this initial regulatory

flexibility analysis because our understanding of possible economic effects of the rule on small 

entities is incomplete. In the absence of apparent significant economic impacts, we have not 

identified alternatives that would minimize such impacts.