### United States

Department of Agriculture Anim al and Plant Health Inspection Service Septem ber 2011 Final Regulatory Flexibility Analysis

Final Rule APHIS - 2010 - 113 RIN 0579 - AD40 Importation of pitaya fruit from Belize, Costa Rica, E l Salvador, Guatemala, Honduras, Nicaragua, and Panama into the continental United States

Policy & Program Development Policy Analysis & Developmenti



### Summary This rule will allow the importation of fresh pitaya fruit into the continental United St ates from the Central American countries of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama, using one or more of the designated ph yt osanitary measures listed in 7 CFR 319.56
- 4(b). E ntities potentially affected by the rule are U.S. pitay a fruit growers , of which most, if not all, are small entities. Pitay a fruit is produced in Hawaii, California, and Florida, but the quantities produced, numbers of U.S. producers, quantities imported, and other factors needed to assess likely
ec onomic effects of this rule are not known. The quantity of pitay a fruit expected to be imported from Belize, Costa Rica, El Salvador, Guatemala, Honduras, and Panama is also unknown. Nicaragua estimates exporting 1,200 metric tons (60 forty

- foot containe rs) of pitay a fruit to the continental U.S. annuall y, and it is thought that the other countries may ship similar or less amounts. Lack of information about the quantity of pitay a fruit that will be imported from this group of countries, and about the quantities produced and already imported by the United States, prevents a clear understanding of what the economic effects of the final rule may be.ii



### Table of Contents Summary
................................ ................................ ................................ .............................. i Introduction
................................ ................................ ................................ ......................... 3 Final Regulatory

Flexibility

Anal ys is
................................ ................................ ................. 3 Need for and Objectives of the Rule
................................ ................................ ............... 3 Significant Issues raised by Public Comment in response to the Initial Regulatory Flexibility

Anal ys is
................................ ................................ ................................ ........ 2 Significant Issues raised by the Sm all Business Administration in response to the Initial Regulatory

Flexibility

Anal ys is
................................ ................................ ........... 2 Potentially

Affected Small Entities
................................ ................................ ................. 2 Project ed Reporting, Recordkeeping, and Other Compliance Requirements
................. 3 Steps taken by

APHI S to minimize Significant Economic Impacts on Small Entities
.. 4iii



### Introduction
APHI S received requests from the n ational p lant p rotection o rganizations of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama to export pitaya fruit to the continental United States. Pitay a fruit (also commonly referred to as pi tahay a or dragon fruit) is a form of cacti fruit native to Central America. The popularity of pitay a fruit in the United States has been steadily rising due to increased interest in exotic fruits and their health benefits. Health benefits of pitay a fruit include lowering blood glucose levels in ty pe 2 diabetes, high antioxidant amounts, high vitamin C levels, and dietary fiber. 1 

### Final Regulatory Flexibility Analysis The Regulatory

Flexibility

Act requires agencies to evaluate the potential effects of thei r proposed and final rules on small businesses, small organizations and small governmental jurisdictions. Section 60 4 of the Act requires agencies to prepare and make available for public comment a final regulatory flexibility

analy sis that describes expe cted impacts of a rule on small entities. Need for and Objectives of the Rule The rule is in response to requests made b y Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama for APHI S to amend the regulations to allow fresh pitaya fruit from these countries to be imported into the continental United States. The objective of the rule is to allow fresh pitay a fruit to be imported into the continental United States from Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and

1 http://dragonfruitpitaya.com/2

Panama
. APHIS has determined that fresh pitay a fruit can be safel y imported from these countries under certain conditions. The legal basis for this action is the Plant Protection Act (7 U.S.C. 7701
- 7772 ) , which authorizes the Secretary of Agriculture to prohibit or restrict the importation of any

plant product if the Secretary determines that the prohibition or restriction is necessary to prevent the introduction of a plant pest or noxious weed into the United States. The rule is part of a continuing program to allow the importation of foreign agricultural products that APHI S has determined are without significant risk of introducing pests or diseases into the United States
. Significant Issues raised by Public Comment in response to the Initial Regula tory Flexibility Analysis No significant issues were raised b y p ublic c omment in response to the Initial Regulatory Flexibility

Anal ys is
. Significant Issues raised by the Small Business Administration in response to the Initial Regulatory Flexibility Analysis No significant issues were raised b y the Small B usiness Administration in response to the Initial Regulatory

Flexibility

Anal ys is
. Potentially Affected Small Entities Farms producing pitay a fruit are classified within the North American Industry Classi fication Sy stem under Other Noncitrus Fruit Farming (NAICS 111 339). For this industry classification, a business is considered to be a small entity if its annual receipts are not more than $750,000. 2 The average 2007 market value of crops sold by farms c lassified within Fruit and

2 U.S. Small Business Administration, Table of Small Business Size Standards. http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf3

Tree Nut Farming (which includes Other Noncitrus Fruit Farming) was less than $188,000. 3 We infer that the majorit y of farms producing pitaya fruit are small entities. APHI S has been unsuccessful in acquiring information on th e U.S. market for pitay a fruit. At this point, we do not know the quantity of pitay a fruit domestically produced, numbers of U.S. producers, the quantity imported, or other factors needed to assess likely economic effects of this rule. Pitaya fruit is produced in Hawaii, California, and Florida. Hawaii’s pitaya production is mainly

consumed within that State. The quantity

of pitay a fruit that is expected to be imported from Belize, Costa Rica, El Salvador, Guatemala, Honduras, and Panama is unknown. N icaragua estimates exporting 1,200 metric tons (60 fort y - foot containers) of pitaya fruit to the continental U.S. annually . The other countries may

ship similar or less amounts. 4 La ck of information about the quantity of pitay a fruit that will be importe d from this group of countries, and about the quantities produced and alread y imported b y the United States, prevents a clear understanding of what the economic effects of the final rule may be. Projected Reporting, Recordkeeping, and Other Compliance Requ irement s Reporting and recordkeeping requirements associated with the final rule are discussed in the rule under the heading "Paperwork Reduction Act."

3 2007 Census of Agriculture , Table 62
. Select ed Characteristics of Farms by North American Industry Classification System: 2007 , http://www.agcensus.usda.gov/Publications/2007/Full_Report/usv1.pdf 4 USDA
- APHIS
- PPQ Im portation of Fresh Pitaya Fruit, Hylocereus spp. and several other genera and speci es, from Central America into the Continental United States: A Multi

- Genus, Regional, Pathway

- Initiated Pest Risk Assessment4

Steps taken by APHIS to minimize Significant Economic Impact s on Small Entities Based on our review of available information, APH IS does not expect the rule to have a significant economic impact on small entities. In the absence of significant economic impacts, we have not identified alternatives that would minimize such impacts.