i 

United States 

Department of 

Agriculture 

Animal and Plant 

Health Inspection 

Service 

August 2011 

Initial Regulatory Flexibility Analysis 

Proposed Rule 

APHIS 2011-0073 

RIN 0579-AD54 

Importation of Oversized Dracaena Plants 

from Costa Rica 

Policy & Program Development 

Policy Analysis & Development
i 

Summary 

 Under the current regulations, Dracaena spp. plants that are 18 inches or less in height 

may be imported into the United States. The proposed amendment allow Dracaena spp. plants 

up to 54 inches in height to be imported into the continental United States from Costa Rica. The 

proposal would require that all Dracaena spp. plants entering the continental United States from 

Costa Rica be subject to integrated pest risk management measures to reduce pest risks. 

Dracaena spp. plants of any size would not be allowed to enter Hawaii and U.S. territories from 

Costa Rica. 

 The United States imports approximately 25 million Dracaena spp. plants from Costa 

Rica annually. On average, APHIS intercepts and fumigates over 8 percent of the Dracaena

shipments and destroys less than 1 percent. Producing Dracaena spp. plants under the proposed 

systems approach would reduce pest infestations and subsequently pest interceptions and costs of 

fumigation or destruction of shipments at ports of entry. 

 The oversized Dracaena spp. plants would be of greater value than the smaller plants 

currently allowed entry, and we expect U.S. nurseries would adjust to new marketing 

opportunities afforded by the larger plants. While most U.S. nurseries and other entities that may 

be affected by the proposed rule are small, effects of the proposed rule are undetermined as 

APHIS does not have information about nurseries that produce Dracaena spp. plants. APHIS 

invites public comment on the potential effects of the proposed rule. 
ii 

Table of Contents

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

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

Initial Regulatory Flexibility Analysis ................................................................................ 2

Reasons Action is Being Considered .............................................................................. 2

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

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

Projected Reporting, Recordkeeping, and Other Compliance Requirements ................. 4

Duplication, Overlap, or Conflict with Existing Rules and Regulations ........................ 4

Alternatives to minimize Significant Economic Impacts of the Rule ............................. 5

References ........................................................................................................................... 6
iii 

Introduction 

Whole Dracaena plants are allowed into the United States including Hawaii if they meet 

the size requirements of 7 CFR 319.37 – 2(b)(6)(i), i.e., a maximum of 460 millimeters or 

approximately 18 inches from the soil line (top of rooting zone for plants produced by air 

layering) to the farthest terminal growing point. The proposed rule would amend the regulations 

by increasing the maximum allowable size of Dracaena plants imported from Costa Rica to 

137.16 centimeters or approximately 54 inches. The rule would also require that plants imported 

from Costa Rica be in compliance with the Bilateral Operational Workplan agreed to by APHIS 

and the National Plant Protection Organization of Costa Rica. Workplan requirements include 

participant approval and registration, training, pest management plans and practices, and facility 

inspection. Dracaena plants imported from Costa Rica would only be allowed into the 

continental United States, not into Hawaii and U.S. territories. 

Dracaena is imported in the form of seeds, cuttings in flask, and whole plants, from 

Canada, China, Costa Rica, Mexico, the Netherlands, and a few other countries, with Costa Rica 

being one of the major sources. Over the period 2006 to 2010, the United States imported an 

average of 25.3 million Dracaena plants from Costa Rica annually. Over the same period, APHIS 

intercepted and fumigated over 8 percent of the Dracaena plants entering the United States from 

Costa Rica, and intercepted and destroyed less than 1 percent. With integrated pest risk 

management measures in place, the pest infestation rate and consequently the pest interception 

rate would likely be reduced. Over the five-year period, 2006 to 2010, APHIS’ cost to fumigate 
2 

Dracaena plants from Costa Rica averaged $22,964 per year.1

 A reduction in the pest 

interception rate would represent potential savings to the Agency. Costa Rica expects to export 

two 40-foot containers of oversized Dracaena plants each week to the United States. 

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 

APHIS is responding to a request from Costa Rica to allow the entry into the United 

States of oversized Dracaena plants, that is, plants up to approximately 54 inches in height. The 

proposed systems approach would mitigate pest risks for the oversized plants as well as for 

plants that are currently allowed entry (not more than 18 inches in height), and is expected to 

reduce pest infestation rates, and consequently interception rates and port-of-entry treatment 

costs. 

Objectives of and Legal Basis for the Rule 

The objective of the rule is to increase the maximum allowable size of Dracaena plants 

imported from Costa Rica. In addition, Dracaena imports would take place under phytosanitary 

 

1

 Source: William Aley, PPQ APHIS. 
3 

requirements provided in the Bilateral Dracaena Operational Workplan.2

 Dracaena plants would 

be allowed only into the continental United States, not into Hawaii and U.S. territories. 

This action is authorized by the Plant Protection Act of June 20, 2000, as amended. 

Section 412(a), 7 U.S.C. 7712(a), which authorizes the Secretary of Agriculture to prohibit or 

restrict the importation, entry, exportation, or movement in interstate commerce of any plant, 

plant part, or article if the Secretary determines the prohibition or restriction is necessary to 

prevent the dissemination of a plant pest within the United States. This rule would amend 7 CFR 

319.37 – 2(b)(6)(i). 

Potentially Affected Small Entities 

For the purpose of this analysis and following the Small Business Administration (SBA) 

guidelines, the entities potentially affected by the proposed rule are classified within the 

following industries, as categorized by the North American Industry Classification System: 

Nursery and Tree Production (NAICS 111421), Floriculture Production (NAICS 111422), Other 

Miscellaneous Non Durable Goods Wholesalers (NAICS 424990), and Flower Nursery Stock 

and Florists’ Supplies Merchant Wholesalers (NAICS 424930). 

According to the Census of Agriculture, entities categorized in Nursery and Tree 

Production and Floriculture Production included 52,845 farms in 2007, and represented three 

percent of all farms in the United States. These entities are considered small by SBA standards if 

 

2

 This is a written agreement between APHIS and Costa Rica’s National Phytosanitary Service of the Ministry of 

Agriculture and Husbandry. The agreement outlines the conditions for growing, packing, and exporting Dracaena 

plants to the United States. 
4 

their annual sales are $750,000 or less. Over 93 percent of the farms in these industry categories 

had annual sales of less than $500,000.3

Establishments classified as Other Miscellaneous Non Durable Goods Wholesalers 

(NAICS 424990) and Flower Nursery Stock and Florists’ Supplies Merchant Wholesalers 

(424930) are considered small by SBA standards if they employ not more than 100 persons. 

According to the 2007 Survey of Business Owners, approximately 88 and 98 percent, 

respectively, of the establishments in these two categories that operated the entire year employed 

fewer than 100 people and are considered small by SBA standards. 

The oversized Dracaena spp. plants would be of greater value than the smaller plants 

currently allowed entry, and we expect U.S. nurseries would adjust to new marketing 

opportunities afforded by the larger plants. The larger plants retail for at least twice as much as 

the smaller plants. APHIS does not know the number of entities in the industries identified 

above that import or grow Dracaena plants, or the portion of total income that is derived from the 

sale of Dracaena; we invite public comment on the potential impacts of the proposed rule. 

Projected Reporting, Recordkeeping, and Other Compliance 

Requirements 

There is no significant additional reporting, recordkeeping, and other compliance 

requirements that would result from this proposed rule. 

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. 

 

3

 The nursery and floriculture industries are representative of other agricultural and non-agricultural industries in 

terms of being comprised largely of small entities. 
5 

Alternatives to minimize Significant Economic Impacts of the Rule 

We do not expect the proposed rule to result in significant economic impacts, but have 

prepared this initial regulatory flexibility analysis because of our limited understanding of the 

Dracaena market in the United States and possible economic effects of the rule on small entities. 

We welcome information about the production, importation, and sale of Dracaena plants in the 

United States and public comment on potential impacts of the proposed rule. 
6 

References 

Census of Agriculture, 2007, 

http://www.agcensus.usda.gov/Publications/2007/Full_Report/index.asp

Survey of Business Owners, 2007, http://factfinder.census.gov/servlet/IBQTable?_bm=y&-

 geo_id=D&-ds_name=SB0700CSA09&-_lang=en

U.S. Small Business Administration. U.S. Small Business Administration: Table of Small 

Business Size Standards Match to North American Industry Classification System 

http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf