### United States

Department of Agriculture Animal and Plant Health Inspection Service June 201 4 **Initial Regulatory Flexibility Analysis**  **Interim Rule**  **APHIS -**  **2013 -**  **0079 Amending the Khapra Beetle Regulations to Add**  **New Countries and Hosts**  **7 CFR 319.75**



### Policy & Program Development Policy Analysis & Developmenti



### Summary C urrent regulations restrict the entry of certain articles known to host the khapra beetle, a destructive pest of grain products and seeds
. T he interim rule will codify requirements of existing Federal Orders b y adding commercial shipments of rice , chick pea, safflower seed, and so yb ean to the list of regulated articles requiring a ph ytosanitary certificate, and b y prohibi ting their importation in passenger baggage and personal effects. The amended regulations will broaden regulations on the importation of khapra beetle host material, such as jute or burlap bags, to all areas where khapra beetle has been detected. The inte rim rule will also add certain countries to the list of areas where khapra beetle is known to exist and move the list to the PPQ Web site , where it will be easier to make timely amendments. The U.S. entities that may be impacted b y the rule are likel y to be those involved in importing, handling, moving, processing, or selling regulated articles. T he 2012 County Business Patterns (North American Industry Classification Sy stem ) statistics corre spond ing to the Small Business Administrat ion small
- entity standards indicate that between 93 and 100 percent of these entities can be considered small
. However, i mpacts of the rule are expected to be limited ; the khapra beetle regulations on rice imports have been in place since July 2012 , and on chick pea, safflower seed, and so yb ean imports since December 2011. None of the newly regulated areas (Kuwait, Oman, Qatar, the United Arab Emirates, and South Sudan , and the Palestinian Authority
- West Bank) i s an important source for the United States of major commodities known to host khapra beetle.iiiii



### Table of Contents Summary
................................ ................................ ................................ .............................. i Introduction
................................ ................................ ................................ ......................... 1 Reasons Action i s Being Considered
................................ ................................ .................. 2 Objectives of and Legal Basis for the Rule
................................ ................................ ........ 2 Potentially

Affected Small Entities
................................ ................................ ..................... 3 Projected Reporting, Recordkeeping, and Other Compliance Requirements
..................... 7 Duplication, Overlap, or Conflict with Existing Rules and Regulations
............................ 7 Alternatives to mi nimize Significant Economic Impacts of the Rule
................................ . 71



### Introduction 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. This initial regulatory flexibility

analy sis describes expected impacts of this interim rule on small entities, as required b y s ection 603 of the Act. The khapra beetle is a destructive pest of grain products and seeds. Populations of the khapra beetle c an increase rapidl y under hot, dry conditions. Khapra beetle has earned a reputation as a dirt y feeder since it damages more of a commodity than it actually consumes. 1 The current regulations (7 CFR 319.75) restrict the entry of certain articles to prevent the importation of khapra beetle . Examples are cucurbit seeds if in shipments greater than two ounces, not for propagation, and from certain listed countries; brassware and wooden screens from Bombay , India; whole chilies, whole red peppers, and cumin seeds in new jute or burlap bags from Pakistan; and g oatskins, lambskins, and sheepskins (excluding ones fully tanned, blue
- chromed, pickled in mineral acid, or salted and moist) from Sudan or India
. The amended regulations will broaden restriction s on the importation of khapra beetle host material . For example , restrictions on jute or burlap bags will be extended to imports from all areas where khapra beetle has been detected. The interim rule will also codify the requirements of existing Federal Orders b y adding commercial shipments of rice , chick pea, safflower seed, and so yb ean to the list of regulated articles requiring a ph ytosanitary certificate , and by prohibiting the ir importation in passenger baggage and personal effects. The interim rul e will add new areas where the khapra beetle has been found to the list of regulated areas ,

1 USDA

–APHIS

–PPQ. 1983. Khapra Beetle. Pests Not Known To Occur in the United States or of Limited Distribution. APHIS 81 - 43, # 30; pp. 1 - 11.2

including Kuwait, Oman, Qatar, the United Arab Emirates, South Sudan, and the Palestinian Authority
- West Bank, and move the list to the PPQ Web site, where it wil l be easier to make timely amendments. 

### Reasons Action is Being Considered Khapra beetle has been detected in more commodities at ports of entry in recent y ears by Customs and Border Protection. If khapra beetle were to become established in the United S tates, producers of host crops and related agricultural industries would face economic losses and costs of mitigating the spread of this pest. APHI S is amending the khapra beetle regulations to better prevent the importation of khapra beetle from countries known to host the pest. 

### Objectives **of and Legal Basis for the Rule**  The objective of the interim rule is to amend the current regulations under Title 7 § 319.75 through 3 19.75
- 9 of the Code of Federal Regulations to prevent the entry of khapra beetle on host commodities. The amended regulations will add additional host material and regulated countries to the khapra beetle regulations ; reflect changes in industry practices that have affected the risk of khapra beetle being imported into the Unit ed States ; update country names that have changed ; and move the list of countries where khapra beetle is known to occur from the regulations to the Plant Protection and Quarantine Web site , thereby enabl ing APHI S to make more timel y amendments to these regulations
. The Plant Protection Act (Public L aw 106
- 224, June 20, 2000) is the statutory basis for 7 CFR 319. It authorizes the Secretary of Agriculture to implement programs and policies designed to prevent the introduction and spread of plant pests and diseases.3



### Potentially Affected Small Entities Any entity involved in growing, handling, moving, processing, or selling newly regulated articles named in the interim rule could be affected
. 2 However, khapra beetle import regulations on rice, chick pea, safflower seed, and soy bean will simply

codify established Federal Order restriction s . The U.S. entities that may be impacted by

the rule are likel y t o be those involved in importing, handling, moving, processing, or selling regulated articles. The associ ated costs are likely to be marginal , especiall y in comparison to the long
- term benefits of protecting against the potential economic losses from introduction of khapra beetle into the United States. **Rice** Entities that could be affected b y the inclusion of rice as an article regulated for khapra beetle are those entities involved in importing, selling, handling, moving , or processing rice. They are most likely

found within the following North American Industry Classification Sy s tem (NAICS) categories:

 311212, ‘Rice Milling’ 3 ;

 311213, ‘Malt Manufacturing’ 4 ;

 311230, ‘Breakfast Cereal Manufacturing’ 5 ;

 311412, ‘Frozen Specialty Food Manufacturing’ 6 ;

2 Stibick , J. 2007. New Pest Response Guidelines: Khapra Beetle. USDA

–APHIS

–PPQ

–Emergency and Domestic Programs, Riverdale, Maryland. [ http://www.aphis.usda.gov/import_export/plants/manuals/online_manuals.shtml] 3 This U.S. industry comprises establishments primari ly engaged in one of the following: (1) milling rice; (2) cleaning and polishing rice; or (3) milling, cleaning, and polishing rice. The establishments in this industry may package the rice they mill with other ingredients. 4 In addition to rice, this U.S. industry classification also comprises establishments primarily engaged in manufacturing malt from barley, rye, or other grains. 5 This industry comprises establishments primarily engaged in manufacturing breakfast cereal foods, including corn, barley, ry e or other grains. 6 This U.S. industry comprises establishments primarily engaged in manufacturing frozen specialty foods that may or may not include rice.4

 311423, ‘Dried and Deh ydrated Food Manufacturing’ 7 ;

 311999, ‘All Other Miscellaneou s Food Manufacturing’ 8 ;

 424490, ‘Other Grocery and Related Products Merchant Wholesalers’ 9 ; and

 424510, ‘Grain and Field Bean Merchant Wholesalers’. 10 The Small Business Administration (SBA) has established standards for determining when entities are considered small. An y entity classified within NAI CS 311212, 311213, 311412, 311423, or 311999 is considered small with 500 or fewer emplo ye es, and an entit y within NAI CS 311230 is considered small with 1,000 or fewer employ ees. Any entity classified within ‘ Other Grocery and Related Products Merchant Wholesalers’ (NAICS 424490) or ‘Grain and Field Bean Merchant Wholesalers’ ( 424510) is considered small by SBA standards if it employ s not more than 100 persons. 11 In2012, there were 13,699 o ther grocery and r elated p roducts m erchant wholesalers in the United States with a total of 269,958 paid employ ees. Approximately , 96 percent of the establishments in this category employ ed fewer than 100 people. 12 Itis likely that domes tic fruit merchant wholesalers that may be affected b y the rule are predominantly small entities. In 2012, there were 4,761 grain and field bean merchant wholesalers in the United States with a total of 49,444 paid employ ees. Approximately , 99 percent of the g rain and field bean merchant wholesale establishments employ ed fewer than 100 people
.

7 This U.S. industry comprises establishments primarily engaged in (1) drying (including freeze
- dried) and/or dehydrating fruits, vegetables, and soup mixes and bouillon and/or (2) drying and/or dehydrating ingredients and packaging them with other purchase d ingredients, such as rice and dry pasta. This category include s rice mixes. 8 This U.S. industry also includes establishments primarily engaged in mixing purchased dried and/or dehydrated ingredients including rice mixes made from purchased rice. 9 This U.S. industry includes merchant wholesalers of polished rice. 10 This U.S. industry includes merchant wholesalers of unpolished rice. 11 U.S. Small Business Administration, Table of Small Business Size Standards http://www.sba.gov/content/table
small
- business
- size
- standards 12 U.S. Economic Census,2012 County and Business Patterns (CBP) data. http://www.census.gov/econ/cbp/index.html5

Any entity classified within ‘Rice Milling’ (NA IC S 311212), ‘Malt Manufacturing’ (NAICS 311213), ‘Frozen Specialty Food Manufacturing’ NAICS (311412), ‘Dried and Deh ydrated Food Manufacturing’ (NA IC S 311423), or ‘All Other Miscellaneous Food Manufacturing’(NAI CS 311999 ) is considered small by SBA standards if it employ s not more than 5 00 persons . In 2012, there were 68 rice milling establishments in the United Stat es with a total of 3,631 paid employees. Out of the 68 rice milling establishments, 99 percent employed fewer than 500 people. In 2012, there were 32 malt manufacturers in the United States with a total of 1 , 172 paid employees and 100 percent of these esta blishments employing fewer than 500 people. In 2012, there were 463 frozen specialt y food manufacturers in the United States with a total of 54,280 paid employ ees , and 93.5 percent of these establishments employed fewer than 500 people. In 2012, there were 205 dried and dehydrated food manufacturers in the United States with a total of 14,010 paid employees . All of these establishments employ ed fewer than 500 people. In 2012, there were 641 establishments classified under all other miscellaneous food manuf acturing in the United States with a total of 26,497 paid employ ees . N earl y 99 percent of these establishments employ ed fewer than 500 people. 13 Any entity classified within ‘Breakfast Cereal Manufacturing’ (NAICS 311230) are considered small b y SBA standards if they emplo y not more than 100 0 persons. 14 In2012, there
were 63 breakfast cereal manufacturers in the United States , with approximately 98 percent employing fewer than 1 , 00 0 people. 15 **Soybean and Safflower seed** 

13 U.S. Economic Census,2012 County and Business Patterns (CBP) data. http://www.census.gov/econ/cbp/index.html 14 U.S. Small Business Administration, Table of Small Business Size Standards http://www.sba.gov/content/table
- small
- business
- size
- standards 15 The total number of paid employees is not known.6

Entitie s that could be affected b y the inclusion of soybean and safflower seed as an article regulated for khapra beetle are those entities involved in importing, sel ling, handling, moving , or processing so ybeans. They are most likel y found within the following NAICS categories:

 311224, ‘Soy

bean and Other Oilseed Processing’;

 311225, ‘Fats and Oils Refining and Blending’ 16 ;

 325211, ‘Plastics Material and Resin Manufacturing’ 17 ;

 325220, ‘Artificial and Sy nthetic Fibers and Filaments Manufacturing’ 18 ; and

 424510, ‘Grain and Field Bean Merchant Wholesalers’. 19 Any entity classified within ‘Grain and Field Bean Merchant Wholesalers’ (NAICS 424510 ) is considered small by SBA standards if they

employ not more than 100 persons. 20 In 2012, there were 4,761 g rain and field bean merchant wholesalers in the United States with a total of 49,444 paid employ ees. Approximately , 99 percent of the grain and field bean merchant wholesalers establishments in employ ed fewer than 100 people
. Any entity classified within ‘ Plastics Materi al and Resin Manufacturing ’ (NAI CS 325211 ) are considered small by SBA standards if they

employ not more than 750 persons. 21 In 2012, there were 1,161 plastics material and resin manufacturing in the United States with a total of 69,352 paid employ ees. More than 98 percent of the establishments in this category employ ed fewer than 750 people. 22

16 This U.S. industry inclu des soybean cooking oil made from purchased oils. 17 This U.S. industry includes manufacturing of soybean plastics. 18 This U.S. industry includes manufacturing of soybean fibers and filaments 19 This U.S. industry includes merchant wholesalers of soybeans. 20 U.S. Small Business Administration, Table of Small Business Size Standards http://www.sba.gov/content/table
small
- business
- size
- standards 21 U.S. Small Business Administration, Table of Small Business Size Standards http://www.sba.gov/content/table
sma ll
- business
- size
- standards 22 U.S. Economic Census , 2012 County and Business Patterns (CBP) data. http://www.census.gov/econ/cbp/index.html7

Any entity classified within ‘Soy bean and Other Oilseed Processing’ (NAICS 311224 ), ‘Fats and Oils Refining and Blending’ (NAICS 311225 ) , or ‘Artificial and Sy nthetic Fibers and Filaments Manufacturing’ (NAICS 325220 ) is considered small with 1,000 or fewer emplo ye es. In 2012, there were 153 s oy bean and o ther o ilseed p rocessing establishments, 133 f ats and o ils
r efining and b lending establishm ents, and 121 manufacturers of artificial and s ynthetic f ibers and f ilaments
. More than 98 percent of the establishments in these categories employed fewer than 1000 people
. 

### Projected Reporting, Recordkeeping, and Other **Compliance Requirement**  **s** Reporting and recordkeeping requirement s associated with the interim rule are discussed in the rule under the heading "Paperwork Reduction Act." 

### Duplication, Overlap **, or**  **Conflict with Existing Rules and Regulations** 
APHI S has not identified any duplication, overlap , or conflict of the interim rule with other Federal rules. 

### Alternatives to minimize Significant Economic Impacts of **the Rule** Based on our review of available information, APHI S does not expect the interim rule to have a significant economic impact on sma ll entities. Principally , the interim rule will codify the requirements of Federal Orders b y adding rice, chick pea, safflower seed, and soy bean to the list8

of regulated articles in § 319.75
- 2 , and broaden restrictions on the importation of khapra beetle host material to all areas where this pest has been detected
. We have prepared this initial regulatory flexibility

anal ys is 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.