Final Regulatory Flexibility Analysis

Final Rule

Importation of Litchi and Longan from Vietnam into the 

Continental United States 

APHIS 2010-0116

U.S. Department of Agriculture

Animal and Plant Health Inspection Service

February 2012
i

Summary

The Animal and Plant Health Inspection Service (APHIS) is amending the fruits and 

vegetables regulations to allow the importation of litchi and longan fruit from Vietnam into the 

continental United States (excluding Florida), in response to a request from the national plant 

protection organization of Vietnam. In the United States, these two fruits are commercially 

produced in Florida and to a lesser extent in Hawaii. Production in California is still largely in 

the developmental stage. Annual U.S. production volumes in 2008 were about 535 metric tons 

(MT) for litchi and 776 MT for longan. Virtually all U.S. farms that grow litchi and longan are 

believed to be small entities based on the Small Business Administration (SBA) standard of

annual receipts of not more than $750,000.

Our review of available information suggests that the rule may have a negative economic 

impact on longan growers and, to a lesser extent, on litchi growers, particularly when the fruit is

sold in Asian and Hispanic markets where the demand for produce tends to be more pricesensitive. The annual quantities of litchi and longan that Vietnam expects to export to the United 

States, namely, 600 MT and 1,200 MT, respectively, would be equivalent to about 17 percent 

and 69 percent, respectively, of average annual U.S. imports for these two fruits, 2007-2010. 

Negative impacts for U.S. producers will be moderated to the extent that imports from Vietnam 

displace imports from other foreign sources. Widely ranging prices for litchi and longan among 

U.S. markets and consumers’ varying purchasing criteria with regard to price and quality may 

indicate opportunities for domestic growers to alleviate negative effects of increased foreign 

competition through alternative marketing arrangements or marketing channels.
ii

Table of Contents

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

Introduction..................................................................................................................................... 3

Production and Trade of Litchi and Longan ................................................................................... 2

U.S. Production............................................................................................................... 2

Florida ......................................................................................................................... 3

Hawaii......................................................................................................................... 5

California .................................................................................................................... 6

World Production and Trade........................................................................................... 6

Vietnam Production and Exports................................................................................ 7

Imports of Litchi and Longan by the United States.................................................... 9

Need for and Objectives of the Rule............................................................................................. 10

Significant Issues Raised by Public Comment in Response to the Initial Regulatory Flexibility 

Analysis......................................................................................................................................... 11

Comments Filed by the Chief Counsel for Advocacy of the Small Business Administration in 

Response to the Proposed Rule..................................................................................................... 12

Potentially Affected Small Entities............................................................................................... 12

Projected Reporting, Recordkeeping, and Other Compliance Requirements............................... 13

Duplication, Overlap, or Conflict with Existing Rules and Regulations...................................... 13

Steps Taken by APHIS to Minimize Significant Economic Impacts on Small Entities............... 13
iii

Introduction

The Animal and Plant Health Inspection Service (APHIS) is amending the fruits and 

vegetables regulations to allow the importation of litchi and longan fruit from Vietnam into the 

continental United States, excluding Florida. Section 604 of the Regulatory Flexibility Act

requires agencies to prepare a final regulatory flexibility analysis (FRFA) that describes expected 

impacts of a final rule on small entities, unless the head of the agency certifies that the rule will 

not, if promulgated, have a significant economic impact on a substantial number of small 

entities. The unavailability of certain statistical data and industry information, especially with 

respect to Florida’s production and sale of litchi and longan, prevents consideration of 

certification. We have, therefore, prepared this FRFA. 

We consider the potential effects on small entities of allowing the commercial 

importation of fresh litchi (Litchi chinensis Sonn.) and longan (Dimocarpus longan Lour.) fruit 

from Vietnam into the continental United States, except Florida. To mitigate phytosanitary risks, 

litchi and longan fruit from Vietnam will be subject to a systems approach specified in a new 

§319.56-60.

1

 

Before addressing the FRFA elements, we provide in the following section an overview 

of production and trade of the two fruits, focusing on U.S. and Vietnam production and expected 

U.S. imports from Vietnam. We discuss litchi and longan production in Florida, Hawaii, and 

California, the three States where litchi and longan are grown, as background for assessing 

possible small-entity effects of the rule.

 

1 Pest risks associated with the importation of litchi and longan from Vietnam are detailed in a pest risk assessment 

prepared by APHIS.
2

Production and Trade of Litchi and Longan

Litchi and longan are subtropical fruits of the Sapindaceae family and are native to 

southern China. Litchi, also known as lichi, lichee, laichi, leechee or lychee, usually has a showy 

color of strawberry red, but can sometimes appear rose, pinkish or amber. Its harvesting season 

is limited mainly to May and June in the Northern Hemisphere. Longan, also known as lungan 

or dragon’s eye, is a fruit similar to litchi, but smaller, smoother, yellowish in color, and with

little aroma. Because of these characteristics, longan has been referred to as the "little brother of 

litchi", or li-chihnu, "slave of litchi.”2 Compared to litchi’s relatively short season, longan is 

available year-round as a result of an off-season flower induction method of cultivation.

U.S. Production

In the United States, only southern Florida and Hawaii, and to a very limited extent,

California, are capable of producing these increasingly popular exotic tropical fruits. The United 

States produced approximately 535 metric tons (MT) of litchi and 776 MT of longan in 2008,

3

which accounted for less than 0.05 percent of world production of these two fruits. Within the 

United States in 2008, Florida held the largest combined production acreages of litchi and longan 

(about 1,600 acres), followed by Hawaii (600 acres) and California (estimated to be from 20 to 

60 acres).

 

2 United Nations, Economic and Social Commission for Asia and the Pacific, 2008, “Enhancing export 

competitiveness of Asian fruits.” http://www.unapcaem.org/publication/F-fruits.PDF

3 Compiled from various sources: 2008 Hawaiian tropical special fruits statistic, University of Florida IFAS 

Extension publications including Crane, Jonathan, August 2008 “Crop profile of lychee and longan in Florida” 

http://www.ipmcenters.org/cropprofiles/docs/FLlycheeLongan.pdf; Mossler, Mark, June 2009, Florida Crop/Pest 

management Profile: Lychee and Longan” http://edis.ifas.ufl.edu/pdffiles/PI/PI05000.pdf, and USDA-NASS 

September 2009 “Hawaii Tropical Specialty Fruits.” 

http://www.nass.usda.gov/Statistics_by_State/Hawaii/Publications/Fruits_and_Nuts/tropfrt.pdf 
3

Florida

In Florida, litchi and longan production apparently increased rapidly in the 1990s, 

although there are no published data on numbers of farms, acreage, production volumes, or

market values. Based on publications and personal communications, we surmise that planting

acreage between 1990 and 2004 increased from about 200 acres to about 1,200 acres for litchi,

and from about 70 acres to about 400 acres for longan.4 

About 90 percent of Florida’s litchi and longan is produced in Miami-Dade County, and 

the remaining in Lee and Palm Beach counties.

5

 Production volumes in recent years are 

estimated to be about 450 MT of litchi and 900 MT of longan.6 A shift away from litchi

production and toward increased longan production has been prompted by two factors: (1) less 

consistent annual yields for litchi than for longan, and (2) litchi’s relatively short season (midMay through early July), compared to year-round availability of longan achieved through an offseason flower induction technique. About 80 percent of longan produced in Florida is believed 

to be sold outside of Florida and may have exceeded 700 MT in 2011. 

Based on average seasonal prices for litchi of $3 per pound and for longan of $2 per 

pound, Florida’s market values for the two fruits in 2008 were estimated to be about $3 million 

and $2.8 million, respectively.

7

 

4 Crane, Jonathan August 2008 “Crop profile of lychee and longan in Florida” 

http://www.ipmcenters.org/cropprofiles/docs/FLlycheeLongan.pdf

5 Florida Agriculture, for litchi http://www.tfgsf.com/?page_id=12 , for longan http://www.tfgsf.com/?page_id=18 

6 Crane, Jonathan August 2008 “Crop profile of lychee and longan in Florida” 

http://www.ipmcenters.org/cropprofiles/docs/FLlycheeLongan.pdf, Mossler, Mark June 2009, Florida Crop/Pest 

management Profile: Lychee and Longan” http://edis.ifas.ufl.edu/pdffiles/PI/PI05000.pdf, Evans, Edward A. 

August 2008 “Importation of Tropical Fruits from Thailand” http://edis.ifas.ufl.edu/pdffiles/FE/FE71900.pdf. 

Personal communication with former and current presidents of South Florida Tropical Growers, Dewey Steele and 

Louise King

7 Evans, Edward A. and Sikavas Nalampang. University of Florida IFAS Extension “Importation of Tropical Fruits 

from Thailand” http://edis.ifas.ufl.edu/pdffiles/FE/FE71900.pdf

Evans, Edward et al. University of Florida IFAS Extension “Is It Still Profitable to Grow Lychee in Florida?”

http://edis.ifas.ufl.edu/pdffiles/FE/FE49600.pdf
4

While census data are not specific for litchi and longan farms, it is thought that Florida 

has about 100 commercial tropical fruit growers.

8,9 Table 1 summarizes information on 

agricultural production in the three Florida counties where litchi and longan are produced.

Table 1. Overall agricultural sales in the three Florida counties where litchi and longan are 

produced, 2007

County

Number of 

Farms

Total Market 

Value of 

Products Sold 

($ million)

County Rank 

in Florida

Average Per 

Farm Sales

Market 

Value: Fruits, 

tree nuts, and 

berries 

($ million)

County 

Rank in 

Florida

Miami-Dade 2,498 $661 2 $264,652 (D) 15

Lee 944 $116 21 $122,945 $29 16

Palm Beach 1,263 $932 1 $737,712 $13 23

Source: USDA NASS, 2007 Census of Agriculture. Florida State and County Data Volume 1, 

http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_2_County_Level/Florida/flv1.p

df

Note: (D) Cannot be disclosed. Any tabulated item that identifies data reported by a respondent or allows a 

respondent’s data to be accurately estimated or derived was suppressed and coded.

According to terminal market price information compiled by USDA’s Agricultural 

Marketing Service, prices of litchi and longan that originate in Florida have fluctuated widely in 

recent years. For example, the highest and lowest 2010 prices per pound of litchi and longan 

from Florida, based on 15 major cities, ranged from $1.25 to $4 for litchi, and from $0.80 to $5 

for longan.10 Most of the fruit is sold outside Florida at price-sensitive Asian and Hispanic food 

stores. 

 

8 Public comment by Dewey Steele on APHIS-2006-0040-0001 “Importation of fruit from Thailand” 

http://www.regulations.gov/contentStreamer?objectId=09000064801cc280&disposition=attachment&contentType=

xml

9 Florida tropical fruit growers, suppliers, distributors, shippers http://www.floridaagriculture.com/business/commerce/tropical/ 

10 USDA Agricultural Marketing Service (AMS) Fruit and vegetable market news portal. 

http://www.marketnews.usda.gov/portal/fv
5

Hawaii

Except for 2010, when there was a severe drought, the production of longan and litchi in 

Hawaii has been steadily increasing, due to their growing popularity and producers’ access to

local farmers’ markets. Most litchi grown in Hawaii is sold and consumed within the State.

11

 

Markets for Hawaiian longan in the continental United States and in Canada, especially along the 

West Coast, are well-established and interstate sales have expanded from 60 MT in 2007 to 108 

MT in 2010. Customers pay premium prices for fresh, high-quality Hawaiian longan and for its 

dependable supply. 

USDA NASS in cooperation with the Hawaiian Department of Agriculture reported in 

2008 that there were 150 litchi farms and 70 longan farms in Hawaii. Most are located on the 

Island of Hawaii and a few others are on Kauai Island. The reported acreage of litchi in 2008

totaled 330 acres, of which 190 acres (58 percent) were harvested. The longan acreage totaled

260 acres, of which 170 acres (65 percent) were harvested. Production of both fruits is expected 

to grow as their harvested acreages increase. Utilized production in 2008 totaled about 100 MT

of litchi valued at $633,000, and 140 MT of longan valued at $992,000.

12 A 2009 report shows 

that sales have steadily increased, from $247,000 in 2004 to $633,000 in 2008 for litchi, and 

from $413,000 in 2004 to $992,000 in 2008 for longan. Longan is the second most important 

tropical specialty fruit after rambutan, and litchi is the fourth most important tropical specialty 

 

11 Personal communications: Ken Love. president of Hawaii Tropical Fruit Growers; Richard Johnson, former 

president of Hawaii Tropical Fruit Growers; and Peter Follet, Research Entomologist, USDA ARS.

12 Utilized production reported by NASS may be understated by as much as one-fourth due to some growers not 

participating in the NASS surveys. 
6

fruit after mango. The total value of sales of tropical specialty fruit in Hawaii equaled $4 million 

in 2008.

13

 

California

Litchi and longan are considered to be promising new crops in California but are still in a

developmental phase; University of California Extension researchers are conducting research 

programs in San Diego, Santa Barbara and Ventura counties. At present, there is no commercial

production of litchi in California and only one known commercial longan orchard. However, 

many backyard litchi and longan growers can be found in San Diego County.14 

World Production and Trade

By far, China is the largest producer of both litchi and longan in the world. China’s litchi 

planted area (1.3 million acres) and production (900,000 MT) accounted for 80 percent and 70 

percent, respectively, of world totals in 2008. Similarly, its longan planted area (1 million acres)

and production (937,500 MT) accounted for 70 percent and 60 percent, respectively, of world 

totals.

15

 

According to a Food and Agriculture Organization (FAO) 2002 report, other major litchi 

producers at that time were India (430,000 MT), Taiwan Province of China (110,000 MT), 

Thailand (85,000 MT) and Vietnam (40,000 MT).16 Although litchi has a long history in 

southern China, it is a relatively new crop in most other countries. As witnessed in the United 

 

13 USDA NASS, September 2009 “Hawaii tropical specialty fruits” 

http://www.nass.usda.gov/Statistics_by_State/Hawaii/Publications/Fruits_and_Nuts/tropfrt.pdf

14 Personal correspondence with Gary Bender, Farm Adviser, University of California Cooperative Extension and 

Dawn Nielsen, Deputy Agricultural Commissioner, Department of Agriculture, County of San Diego.

15 USDA-Foreign Agricultural Service (FAS) GAIN report, May 28, 2008 “China, Peoples Republic of, Agricultural 

Situation, Tropical Fruit in China,” http://www.fas.usda.gov/gainfiles/200805/146294773.pdf

16 FAO, March 2002, “Lychee Production in the Asia-Pacific Region” 

ftp://ftp.fao.org/docrep/fao/005/ac684e/ac684e00.pdf . Most recent FAO data available.
7

States, litchi is considered a difficult crop to grow for consistent yields. Furthermore, it is highly 

perishable and has a very short shelf life without refrigeration.17 

As for other major longan producers, the FAO reported that Thailand produced 238,000 

MT in 1998; Taiwan Province of China, 130,500 MT in 1997 and 53,385 MT in 1998; Vietnam,

365,000 MT in 1999; and Australia, 1,000 MT in 2000.

18

 

Thailand is the largest exporter of longan in the world. In 2007, Thailand produced 

495,000 MT of longan (twice its production in 1998) and exported 32 percent (158,000 MT) as 

fresh longan, earning about $61 million.19 One published paper explains the difficulties 

associated with the production and marketing of Thai longan: “Even though it is the leading fruit 

crop export of Thailand, there has been an oversupply problem of longan in the market resulting 

in a significant decline in price. A short harvesting season and its highly perishable nature create

a large, concentrated produce flow to the market with oversupply at the front and significant 

waste at the end. This reduces farm prices and farmer income.”

20

Vietnam Production and Exports

The export season for Vietnamese litchi to the United States is expected to be May and

June, while longan could be exported year-round. According to data provided by Vietnam’s

national plant protection organization (NPPO), production of litchi grown for export peaked in 

2006 at above 200,000 MT, but has been declining since then, and is expected to be about 50,000 

MT in 2011. Vietnam’s production of longans for export, on the other hand, has shown

 

17 Ibid.

18 FAO, Prof. Wong Kai Choo, December 2000, “Longan Production in Asia” 

ftp://ftp.fao.org/docrep/fao/003/x6908e/x6908e00.pdf . Most recent FAO data available. 

19 Evans, Edward A., University of Florida IFAS Extension, August 2008, “Importation of Tropical Fruits from 

Thailand” http://edis.ifas.ufl.edu/pdffiles/FE/FE71900.pdf

20 Chanrittisen, Thirawan, Asian Jounal of Food and Agro Industry, 2010, “Exploring feasibility for production of 

longan fruit wine as a small scale enterprise in Thailand”

http://www.ajofai.info/Abstract/Exploring%20feasibility%20for%20production%20of%20longan%20fruit%20wine

%20as%20a%20small%20scale%20enterprise%20in%20thailand.pdf
8

substantial growth, from about 80,000 MT in 2001 to close to 200,000 MT in 2010.21 Figure 1

shows the Vietnamese production of litchi and longan in areas serving exports.

Figure 1. Vietnamese production volumes of litchi and longan, 2001 -2010

Source: Post-import Vegetable Product Quarantine Centre, Ministry of Agriculture and Rural Development, 

Vietnam.

The Vietnamese NPPO estimates that about 70-75 percent of litchi production is 

consumed domestically; the rest is exported to China, Hong Kong, Canada, ASEAN countries, 

European countries, Russia, and other former Soviet Republics.22 Information on Vietnam’s 

longan exports is not available; however, it is believed Vietnam is increasing its exports to 

European countries, including the United Kingdom and France, and to Canada, in addition to

southern China and neighboring countries such as Singapore and Hong Kong.23 A new 

irradiation facility is opening in Binh Duong Province that will facilitate the export of litchi and 

longan to the United States. 

 

21 Post-import Vegetable Product Quarantine Centre, Ministry of Agricultural and Rural Development, Vietnam 

22 Ibid.

23 FAO, December 2004, “Fruits of Vietnam” http://www.fao.org/docrep/008/ad523e/ad523e00.htm, various news 

articles.
9

Imports of Litchi and Longan by the United States

U.S. litchi imports fell from 5,222 MT in 2007, to 3,244 MT in 2010. We do not know 

the reason for this decline nor the U.S. market’s capacity for growth in the near term. Many

industry participants believe it will expand, based on increasing Asian and Hispanic populations. 

Table 2 shows the annual amounts of litchi imported, 2007-2010, by source country. China has 

been consistently the largest exporter of litchi to the United States, followed by Taiwan and 

Mexico. Vietnam is expecting to export 600 MT of litchi to the United States, a quantity 

equivalent to about 17 percent of average litchi imports, 2007-2010 (3,562 MT).

24

 All things 

equal, an increase in the quantity supplied of this magnitude is likely to cause downward 

pressure on prices. 

Table 2. U.S. imports of fresh litchi, 2007-2010, by country (metric tons)

Country 2007 2008 2009 2010

Average

(2007-2010)

Chile - - 23 - 6

China 3,208 1,740 1,775 2,194 2,229

Israel 105 42 39 19 51

Mexico 422 493 321 474 428

Taiwan 1,485 589 759 556 847

Viet Nam 2 - - - 1

Total 5,222 2,864 2,917 3,243 3,562

Source: APHIS PPQ.

Table 3 shows the annual amounts of longan imported, 2007-2010, by source country. 

China was the largest exporter of longan to the United States in 2007; however, Thailand has 

claimed that spot for the last three years.

Vietnam is expecting to export 1,200 MT of longan to the United States, equivalent to 

about 69 percent of average longan imports, 2007-2010 (1,748 MT). Even more so than in the 

 

24 One metric ton is equivalent to one air container.
10

case of litchi imports from Vietnam, the additional longan imports (together with any increased 

supply from Florida) will likely have a significant impact on the U.S. longan market and prices.

Table 3. U.S. imports of fresh longan, 2007-2010, by country (metric tons)

Country 2007 2008 2009 2010

Average

(2007-2010)

China 1,272 865 179 160 619

Guatemala - - 0.2 - 0.2

Taiwan - - - 37 9

Thailand 159 1,689 1,579 986 1,103

Viet Nam 22 44 - - 17

Total 1,453 2,598 1,758 1,183 1,748

Source: APHIS-PPQ.

Need for and Objectives of the Rule

APHIS is responding to a request from Vietnam’s NPPO that the regulations in “SubpartFruits and Vegetables” (7 CFR 319.56-1 through 319.56-59) be amended to allow the 

importation of fresh litchi and longan fruit from Vietnam into the continental United States, 

excluding Florida. APHIS has determined that this request should be granted given that pest 

risks will be sufficiently mitigated using a prescribed systems approach. 

The objective of the rule is to allow the importation of litchi and longan from Vietnam, 

on condition that these fruits will be grown in a production area that is registered with and 

monitored by Vietnam’s NPPO, irradiated at a specified level in Vietnam at an APHIS certified 

facility, and accompanied by a phytosanitary certificate issued by Vietnam’s NPPO with an 

additional declaration stating that the consignment was inspected in Vietnam and found free of 

Phytophthora litchii.

Regulations setting phytosanitary requirements for the importation of fruits and 

vegetables into the United States and approved phytosanitary treatments are stated in 7 CFR 

319.56 and 305, respectively. The Plant Protection Act (Public Law 106-224, June 20, 2000) is 
11

the statutory basis for parts 305 and 319. It authorizes the Secretary of Agriculture to implement 

regulations designed to prevent the introduction and spread of plant pests and diseases. 

Significant Issues Raised by Public Comment in Response to 

the Initial Regulatory Flexibility Analysis

APHIS received two public comments during the 60-day comment period ending 

December 27, 2011. They were from an organization of State plant agencies and an association 

of tropical fruit growers. One commenter raised a concern that the expected increase in litchi 

and longan imports could significantly harm the nascent U.S. litchi/longan industry due to lower 

production costs of foreign growers. The commenter also requested that inspections by U.S. 

Customs and Border Protection (CBP) include the search for evidence of pesticides or pesticide 

residue levels in the imported litchi and longan that are not authorized by the United States. 

APHIS does not have authority to restrict imports solely because of potential economic effects 

on domestic producers. APHIS also does not have authority to require that levels of pesticide 

residues in imported food commodities not exceed tolerances established by the Environmental 

Protection Agency. Questions concerning unauthorized pesticide residue levels in imported 

litchi or longan can be addressed to the Commercial Targeting and Analysis Center (CTAC), a 

new CBP facility established by the Department of Homeland Security in 2009. CTAC serves as 

the multi-agency center for targeting commercial imports that pose a threat to the health and 

safety of Americans.25

 

25 Federal agencies with authority governing the safety of products imported into the United States acknowledge the 

need to share information about the safety of those products. The mission of CTAC is to provide a vehicle to 

facilitate the sharing of information and leverage the collective resources of the participating government agencies 

for the prevention, preemption, deterrence, and investigation for violation of importation laws that affect United 

States interest in the import safety environment. CBP, Import Safety Commercial Targeting and Analysis Center 

(CTAC) http://www.cbp.gov/xp/cgov/trade/priority_trade/import_safety/ctac/
12

Comments Filed by the Chief Counsel for Advocacy of the 

Small Business Administration in Response to the Proposed 

Rule

No comments were filed by the Chief Counsel of the Small Business Administration in 

response to the proposed rule.

Potentially Affected Small Entities

We have provided information on litchi and longan growers in Florida, Hawaii, and 

California. Entities potentially affected by the rule are classified within the following industries, 

according to the North American Industry Classification System: Other Non Citrus Fruit 

Farming (NAICS 111339), Postharvest Crop Activities (except cotton ginning) (NAICS 

115114), and Fresh Fruit and Vegetable Merchant Wholesalers (NAICS 424480). 

Establishments classified within Other Non Citrus Fruit Farming are considered small by the 

Small Business Administration (SBA) if annual sales are not more than $750,000. We do not 

have the size distribution of litchi and longan producers, but according to the Census of 

Agriculture there were 23,641 farms classified within Other Non Citrus Fruit Farming in 2007.26

The market value of crops sold by these farms that year was about $111,000, well below the 

small-entity standard. We believe that all commercial litchi and longan producers in Florida, 

Hawaii, and California are small entities.

Establishments classified within Postharvest Crop Activities (except cotton ginning) are 

considered small by SBA standards if annual sales are not more than $7 million. The percentage 

of establishments that meet this standard is not known; neither the Census of Agriculture nor the 

Economic Census reports revenue for these establishments. Establishments classified within 

 

26 USDA NASS. 2007 Census of Agriculture, Table 46. Selected Characteristics of Farms by North American 

Industry Classification System: 2007,

http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_1_US/st99_1_046_046.pdf
13

Fresh Fruit and Vegetable Merchant Wholesalers (NAICS 424480) are considered small by SBA 

standards if they employ not more than 100 persons. According to the 2002 Survey of Business 

Owners, 97 percent of the establishments in this category employed fewer than 100 people.

Projected Reporting, Recordkeeping, and Other Compliance 

Requirements

The rule will not result in U.S. entities being subject to reporting, recordkeeping or other 

compliance requirements beyond those already required for the importation of irradiated fruit. 

Phytosanitary certification and fulfillment of related import conditions will be the responsibility 

of the exporting party.

Duplication, Overlap, or Conflict with Existing Rules and 

Regulations

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

Federal rules.

Steps Taken by APHIS to Minimize Significant Economic 

Impacts on Small Entities

APHIS does not have an alternative to the rule’s systems approach for allowing the 

importation of fresh litchi and longan fruit from Vietnam. 

Our review of available information suggests that the rule may have a negative economic 

impact on longan growers and, to a lesser extent, on litchi growers. The annual quantities of 

litchi and longan that Vietnam expects to export to the United States, namely, 600 MT and 1,200 

MT would be equivalent to about 17 percent and 69 percent, respectively, of average annual U.S. 

imports for these two fruits, 2007-2010. Negative impacts for U.S. producers will be moderated 

to the extent that imports from Vietnam displace imports from other foreign sources.
14

Widely ranging prices for litchi and longan among U.S. markets may indicate 

opportunities for domestic growers to alleviate negative effects of increased foreign competition 

through improved marketing arrangements. Demand for produce in traditional outlets for litchi 

and longan, such as Asian and Hispanic markets, tends to be more price-sensitive. On the other 

hand, American consumers in certain other market segments are paying premiums at specialty 

food stores, grocery chains, specialty supermarkets, gourmet restaurants, local farmers’ markets, 

and through direct sales by producers, for products that provide certain product attributes, such 

as freshness, quality, traceability, and sustainability. 

U.S. producers may be able to lessen the effects of increased foreign competition by 

developing marketing arrangements that allow access to more profitable retail outlets for their 

litchi and longan. We note that virtually all litchi and longan growers in the United States are 

small entities, and litchi and longan trees generally require more time and effort for cultivation 

than non-specialty fruit trees. These conditions make the development of cold chain distribution 

and marketing plans by litchi and longan producers to channel their fruit into these growing 

niche markets all the more difficult. Public agencies at the local, State, and Federal levels, 

including university agricultural extension offices, may be able to provide guidance or other 

assistance for improving marketing opportunities.

Specialty tropical fruits, such as litchi and longan, are popular among Asian and Hispanic

ethnic groups but relatively unknown among other ethnic groups. As seen with other specialty 

fruits, such as mango, Asian pear, Fuji apple, and kiwifruit, increased imports of litchi and 

longan and their wider availability may help stimulate the demand for these fruits among U.S. 

consumers in the longer run. Such prospects will benefit domestic growers by making expanded 

U.S. production more economically feasible.