### United States

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

**Rule will not have a Significant Economic Impact on a Substantial Number of Small**  **Entities**
**Final Rule**  **APHIS -**  **2012 -**  **0038 RIN 0579**  **- AD79** 
**Importation of c ape gooseberry fruit from**  **Colombia into the United States under a systems approach (7 CFR 319.56)** 

Policy & Program Development Policy Analysis & Developmenti



### Summary
APHI S is amending the current regulatio ns to allow the entry of fresh c ape gooseberries from Colombia under a sy stems approach. Since 2003, Colombia ha s been allowed to export fresh c ape gooseberries to the United States under a cold treatment pro tocol to prevent the entry of the Mediterranean fruit fly (Medfl y). Th e s ys tems approach will permit c ape gooseberry imports without cold treatment from production sites recognized as free of Medfly

. In 2011, only about 0.2 percent (14 metric tons) of Colombia’s fresh c ape gooseberry exports were shipped to the United States, valued at about $90,300. The United States does not produce c ape gooseberry commercially . Small entities that will benefit f

rom increased imports of fresh c ape gooseberries from C olombia will be importers, wholesalers, and other merchants who sell this fruit. While these industries are primarily comprised of small entities, APHI S expects any impacts of the rule for these businesses to be minor. T his action will not have a signifi cant economic impact on a substantial number of small entities.ii



### Table of Contents Summary
................................ ................................ ................................ .............................. i Introduction

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

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



### Introduction This analy sis provides the basis, as required b y the Regulatory Flexibility

Act, for certification by

the APHIS Administr ator that the rule will not have a significant economic impact on a substantial number of small entities. Currently , c ape gooseberry (Physalis peruviana) fruit imported fro m Colombia is required to be cold treated for the Mediterranean fruit fly (Medfl y), the only quarantine pest identified for this pathway . This rule will allow entry of this fruit into the United States without cold treatment under a s ystems approach that will entail production in Colombian municipalities recognized as free of Medfly

. Col ombia has been exporting fresh c ape gooseberries to the United States since 2003. In 2006, Colombia produced approximat ely 12,000 metric tons (MT) of c ape gooseberries on 800 hectares of land. 1 Most of Colombia’s c ape gooseberry production is exported, principall y to the Netherlands and Germany . In 2011, Colombia exported fresh c ape gooseberry totaling about 6,900 MT and valued at about $27 million. Of the total quantity exported, the United States received only

0.2 percent (14 MT). The Netherlands and Germany received about 73 percent and 19 percent, respectively , valued at over $24 million (table 1). The United States does not produce c ape gooseberry commerciall y.

1 Bayer Crop Science, Colombian exotic fruits, A bright future lies ahead (2006).2

T able 1. Destination, val ue, and quantit y of Colombia’s c ape gooseberry exports, 2011 Destination Value ( Dollars) Quantity

(Metric Tons) World 26,939,080 6,899 The Netherlands 18,952,003 5,011 German y 5,557,253 1297 Canada 646,071 157 France 597,000 135 Belgium 395,212 87 Brazil 244,739 70 United States 90,306 14 Other 456,496 128 Source: Global Trade Information Services, Inc. 

### Potential Impact on Small Entities Since the United States does not commerciall y produce c ape gooseberries, the rule will not directly

impact U.S. fruit farmers. U.S. importers and wholesalers of c ape gooseberries, businesses categorized within the fresh fruit and vegetable merchant wholesale industry (NAICS 424480) , will benefit from an increase in fresh c ape gooseberry imports from Colombia, but impacts of the rule for these businesses will be minor. We received no comments pertaining to the initial economic analy sis of this rule. T he APHI S Administrator has determined that this action will not have a significant eco nomic impact on a substantial number of small entities.