### United States

Department of Agriculture Animal and Plant Health Inspection Service June 2012 **Analysis in Support of Certification that the** 

**Rule will not have a Significant Economic Impact on a Substantial Number of Small**  **Entities Proposed**  **Rule APHIS**  **- 2012**  **- 0038**  **RIN 0579 -** **AD79 Importation of Cape 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 proposing to amend the current regulations to allow the entry of fresh Cape gooseberries from Colombia under a s ys tems approach. Since 2003 , Colombia has been allowed to export fresh Cape gooseberries to the United States under a cold treatment protocol to prevent th e entry of the Mediterranean fruit fly (Medfl y)
. The sy stems approach would permit Cape gooseberry

imports without cold treatment from production sites recognized as free of Medfly
. In 2011, onl y 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 Cape gooseberry commercially . Small entities that may benefit from increased imports of fresh Cape gooseberries from Colombia would 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 proposed rule for these businesses to be minor. This action , if promulgated, will not have a significant economic impact on a substantial number of small entities.ii



### Table of Contents Summary
................................ ................................ ................................ .............................. i Introduction
................................ ................................ ................................ ......................... 3 Potential Impact on Small Entities
................................ ................................ ...................... 2iii



### Introduction This analy sis provides the basis, as required by the Regulatory

Flexibility

Act, for certification by

the APHIS Administrator that the proposed rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. Currently , Cape gooseberry (Physalis peruviana) fruit imported from Colombia is required to be cold treated for the Mediterranean fruit fly (Medfl y) , the only

quarantine pest identified for this pathway . The proposed rule would allow entry of this fruit into the United States without cold treatment un der a s ys tems approach that would entail production in Colombian municipalitie s recognized as free of Medfly
. Colombia has been exporting fresh Cape gooseberries to the United States since 2003
. In 2006 , Colombia produced approximately 12,000 metric tons (MT) of Cape gooseberries on 800 hectares of land. 1 Most of Colombia’s Cape g ooseberry production is exported , principally to the Netherlands and Germany
. In2011 , Colombia exported fresh Cape gooseberry totaling about 6, 900 MT and valued at about $2 7 million
. Of the total quantity exported, the United States received only 0.2 pe rcent ( 14 MT )
. The Netherlands and Ger many received about 73 percent and 19 percent, respectivel y, valued at over $24 million (t able 1 )
. The United States does not produce Cape gooseberry commercially
.

1 Bayer Crop Science, Colombian exoti c fruits, A bright future lies ahead (2006) ttp://www.sputtr.com/read/a
- bright
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- lies
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Table 1. Destination, value, and quantity of Colo mbia ’s Cape g ooseberry exports, 2011

Destination Value ( Dollars ) Quantity

( M etric Tons ) World 26,939,080 6,899 The Netherlands 18,952,003 5,011 Germany 5,557,253 1297 Canada 646,071 157 France 597,000 135 Belgium 395,212 87 Brazil 244,739 70 Unite d 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 Cape gooseberries , the proposed rule would not directl y impact U.S. fruit farm er s . U.S. importers and wholesalers of Cape gooseberries , businesses categorized within the fresh fruit and vegetable merchant wholesale industry (NAICS 42 4 480) , would benefit from any increase i n fresh Cape gooseberry imports from Colombia, but impacts o f the proposed rule for these businesses would be minor. The APHI S Administrator has determined that this action , if promulgated, will not have a significant economic impact on a substantial number of small entities.