Initial Regulatory Flexibility Analysis (IRFA)

Proposed 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

May 2011
i

Summary

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

organization (NPPO) of Vietnam to export fresh litchi and longan to the continental United 

States. 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 proposed 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

price-sensitive. 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 18 

percent and more than 100 percent, respectively, of U.S. import levels for these two fruits in 

2010. Negative impacts for U.S. producers would be moderated to the extent that imports from 

Vietnam displace imports from other foreign sources.

For the proposed rule, APHIS does not have an alternative to the proposed systems 

approach for allowing the importation of fresh litchi and longan fruit from Vietnam. Widely

ranging prices for litchi and longan among U.S. markets and consumers’ varying purchasing 

criteria in regard to price, quality and sustainability 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......................................................................................................................... 1

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

U.S. Production............................................................................................................... 3

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

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

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

World Production and Trade........................................................................................... 7

Vietnam Production and Exports................................................................................ 8

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

Initial Regulatory Flexibility Analysis.............................................................................. 11

Reasons for Action........................................................................................................ 11

Objectives and Legal Basis for Rule............................................................................. 11

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

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

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

Alternatives to minimize Significant Economic Impacts of the Rule........................... 13
1

Introduction

In this document, we consider the potential effects on small entities, as required by the 

Regulatory Flexibility Act (RFA), of a proposed rule that would allow 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 would be subject to a systems approach specified in a new 

§319.56-51.1 

Section 603 of the RFA requires an agency to prepare and make available for public 

comment an initial regulatory flexibility analysis (IRFA) describing the expected impact of a 

proposed 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 at this 

time. We have, therefore, prepared this IRFA, and welcome public comment. Section 603(b) of 

the Act specifies that an IRFA shall contain: 

 A description of the reasons for action by the agency; 

 A statement of the objectives of, and legal basis for, the proposed rule; 

 A description of and, where feasible, an estimate of the number of small entities 

to which the proposed rule will potentially affect; 

 A description of the projected reporting, recordkeeping and other compliance 

requirements of the proposed rule; 

 

1

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

prepared by APHIS.
2

 An identification, to the extent practicable, of all relevant Federal rules which 

may duplicate, overlap or conflict with the proposed rule; and

 A description of any significant alternatives to the proposed rule which 

accomplishes the stated objectives of applicable statutes and which minimize any

significant economic impact of the proposed rule on small entities.

Before addressing these IRFA 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.

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.

 

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

Asian fruits.” http://www.unapcaem.org/publication/F-fruits.PDF
3

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).

Florida

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

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

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

acreages between 1990 and 2004 increased from about 200 acres to about 800 to 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 1 million pounds of litchi and 2 million pounds of longan.6 A shift away

 

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 

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.florida-agriculture.com/marketing/lychee_popup.htm, for longan 

http://www.florida-agriculture.com/marketing/images/maps_images/longan.jpg 

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. 
4

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 (mid-May through early July), compared to year-round availability of longan achieved 

through an off-season flower induction technique. 

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

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.

 

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

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/tropical/suppliers.htm
5

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 1263 $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 (AMS), 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. 

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

 

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

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

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.
6

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 230,000 pounds 

of litchi valued at $633,000, and 310,000 pounds of longan valued at $992,000.

12 A 2009 report 

shows that the values of 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 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

 

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. 

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

http://www.nass.usda.gov/Statistics_by_State/Hawaii/Publications/Fruits_and_Nuts/tropfrt.pdf
7

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

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 

 

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.

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. 
8

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), domestic 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 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 that were produced in areas 

serving exports.

 

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

21 Post-import Vegetable Product Quarantine Centre, Ministry of Agricultural and Rural Development, Vietnam 
Figure 1. Vietnamese production volumes of litchi and longan, 20

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

Vietnam.

The Vietnamese NPPO estimates 

consumed domestically; the rest is exported to 

European countries, Russia, and 

longan exports is not available; however, 

European countries, including the U

southern China and neighboring countries such as Singapore and Hong Kong.

irradiation facility is opening in Binh Duong 

and longan to the United States. 

Imports of Litchi and Longan by the United States

U.S. litchi imports fell from 

the reason for this decline nor the 

 

22 Ibid.

23 FAO, December 2004, “Fruits of Vietnam” 

articles.

9

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

import Vegetable Product Quarantine Centre, Ministry of Agriculture and Rural Development, 

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

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

and other former Soviet Republics.22 Information on Vietnam

however, it is believed Vietnam is increasing its exports to 

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

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

is opening in Binh Duong Province that would facilitate the export of litchi 

longan to the United States. 

ongan by the United States

from 5,222 MT in 2007, to 3,244 MT in 2010. We do not know 

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

 

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

import Vegetable Product Quarantine Centre, Ministry of Agriculture and Rural Development, 

production is 

China, Hong Kong, Canada, ASEAN countries, 

Information on Vietnam’s 

increasing its exports to 

in addition to

 A new 

facilitate the export of litchi 

We do not know 

in the near term. Many

http://www/fao.org/docrep/008/ad523e/ad523e00.htm, various news 
10

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 18 percent of litchi imports in 2010.

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

Chile - - 23 -

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

Israel 105 42 39 19

Mexico 422 493 321 474

Taiwan 1,485 589 759 556

Viet Nam 2 - - -

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

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.

Hawaii has been supplying an increasing amount of longan to the mainland, now around 

100 MT annually. Output of Florida longan is expected to increase, with production in 2011 

expected to be close to 2 million pounds (900 MT). About 80 percent of longan produced in 

Florida is believed to be sold outside of Florida and may exceed 700 MT in 2011.

Vietnam is expecting to export 1,200 MT of longan to the United States, equivalent to 68

percent of longan imports in 2009 and greater than the total quantity imported in 2010. Even 

more so than in the case of litchi imports from Vietnam, the additional longan imports (together 

 

24 One metric ton is equivalent to one air container.
11

with any increased supply from Florida) would 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

China 1,272 865 179 160

Guatemala - - 0.2 -

Taiwan - - - 37

Thailand 159 1,689 1,579 986

Viet Nam 22 44 - -

Total 1,4533 2,598 1,759 1,183

Source: APHIS-PPQ.

Initial Regulatory Flexibility Analysis

APHIS has prepared this initial regulatory flexibility analysis in order that the public may

have the opportunity to review and offer comments on expected small-entity effects of this 

proposed rule. We welcome information and comments that can help us to better understand 

potential impacts for small entities. We address here items as required by Section 603(b) of the

Regulatory Flexibility Act.

Reasons for Action 

APHIS is responding to a request from Vietnam’s NPPO that the regulations in “SubpartFruits and Vegetables” (7 CFR 319.56-1 through 319.56-50) be amended to allow the 

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

APHIS has determined that this request should be granted given that pest risks would be

mitigated using a prescribed systems approach. 

Objectives and Legal Basis for Rule 

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

Vietnam, on condition that these fruits would 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 
12

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 Peronophythora 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 

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. 

Potentially Affected Small Entities

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

California. Entities potentially affected by the proposed 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 2007.25

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.

 

25 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

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 

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 proposed rule would 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 would 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 proposed rule with 

other Federal rules.

Alternatives to minimize Significant Economic Impacts of the Rule

For the proposed rule, APHIS does not have an alternative to the proposed systems 

approach for allowing the importation of fresh litchi and longan fruit from Vietnam. 

Our review of available information suggests that the proposed 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, respectively, about 18 percent and more than 100 

percent of U.S. import levels for these two fruits in 2010. Negative impacts for U.S. producers 
14

would 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 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 which 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 bring 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 Kiwi fruit, increased imports of litchi and 

longan and their wider availability may help stimulate the demand for these fruits among U.S. 
15

consumers in the longer run. Such prospects would be beneficial to domestic growers, as it 

would make expanded U.S. production operations more economically feasible. We invite public 

comment concerning potential effects of the proposed rule on U.S. small entities.