### United States

Department of Agriculture Animal and Plant Health Inspection Service July 2014 **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 2013 -**  **0057 RIN 0579**  **- AD8**  **4 Expansion of Areas Considered Free of**  **Mango Seed Weevil and Mango Pulp Weevil in the Philippines and Addition of Irradiation**  **as a Treatment for Mango Pulp Weevil**

Policy & Program Development Policy Analysis & Developmenti



### Summary This final rule is in response to a request from the Philippines to recognize additional areas (regions in Luzon, Visay as, and Mindanao) as free of mango seed and mango pulp weevils, and the island of Palawan as free of mango seed weevil. Currentl y, fresh mango from the Philippines is enterable into the United States from the island of Guimaras, considered free of these weevils, subject to treatment to mitigate the risk associated with fruit flies of the genus Bactrocera
. In addition, APHI S is amending the PPQ treatment manual by adding irradiation at 165 Gy as an option to mitigate the risk associated with mango pulp weevil. This dosage also mitigates the risk associated with fruit flies of the genus Bac trocera . This rule codifies the pro visions of the pro posed rule. In 2010 and 2011, fresh mango exports to the United States from the Philippines averaged about 42,000 pounds per year. U.S. mango imports from all sources averaged more than 3.3 billion pounds per year between 2009 and 2012, with most coming from Mexico, Peru, Ecuador, Brazil, and Guatemala . Thus, imports from the Philippines comprise a negligible share of total fresh mango imports, less than 0.002 percent. Given the Philippines’ current very small share and the proximity

of major Latin American sources, the additional quantity of fresh mango that may potentiall y be imported from the Philippines because of this rule is unlikely to make an appreciable difference in the total quantity imported. U.S. mango production ( about 6.6 million pounds per y ear) is equivalent to 0.2 percent of total imports. Most if not all mango farms are small entities in Florida, California, Texas, and Hawaii , where the fruit is primarily marketed locally . An y effect for these farms and for mangoii

importers of additional fresh mango imports from the Philippines w ill be inconsequential, given the very small change expected to total imports. There will be no recordkeeping or other compliance costs associated with the final rule for U.S. entities, other than the import docum entation normally required. The APHI S Administrator certifies that the final rule, if promulgated, will not have a significant economic impact on a substantial number of small entities.iii



### Table of Contents Summary

................................ ................................ ................................ .............................. i Introduction

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

................................ ................................ ...................... 1 References

................................ ................................ ................................ ........................... 41



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

Flexibility

Act, for certification by

the APHIS Administrator that the rule will not have a significant economic impact on a substantial number of small entities. This final rule is in response to a request from the Philippines to recognize additional areas (regions in Luzon, Visay as, and Mindanao) as free of mango seed and mango pulp weevils, and the island of Palawan as free of mango seed weevil. Currentl y, fresh mango from the Philippines is enterable int o the United States from the island of Guimaras, considered free of these weevils, subject to treatment to mitigate the risk associated with fruit flies of the genus Bactrocera
. In addition, APHI S is proposing to amend the PPQ treatment manual by adding i rradiation at 165 Gy

as an option to mitigate the risk associated with mango pulp weevil. This dosage also mitigates the risk associated with fruit flies of the genus Bactrocera
. 

### Potential Impact on Small Entities Following the Small Business Administration (SBA) guidelines, the entities potentially affected b y the proposed rule are classified within the following industries: Other Non C itrus Farming (NAICS 111339); Fresh Fruit and Vegetable Merc hant Wholesalers (NAICS 424480); and Post Harvest Crop Activities (except cotton ginning) (NAICS 115114)

. Establishments classified within Other Non Citrus Farming are considered small by SBA standards if annual sales are not more than $750,000. APHI S does not have information on the size distribution o f mango producers but according to the 20 12 Census of Agriculture there were 2 1 , 073 farms in the Other Non Citrus Farming classification, and the market value of the ir crop sales averaged about $120 ,000, well below the small

- entity standard. We infer that most if not all U.S. mango farms are also small entities. Establishments classified within Fresh Fruit and Vegetable Merchant2

Wholesalers are considered small by SBA standards if they

employ not more than 100 persons. According to the 2007 Survey of Bu siness Owners, 97 percent of the establishments in this category employ ed fewer than 100 people. Establishments classified within Post Harvest Crop Activities (except cotton ginning) (NAICS 115114) are considered small by SBA standards if
annual sales are not more than $25.5 million. The percentage of establishments that meet this standard is not known; neither the Census of Agriculture nor the Economic Census reports revenue for these establishments. In 2010 and 2011, fresh mango exports to the United Stat es from the Philippines averaged about 42,000 pounds per year. U.S. mango imports from all sources averaged more than 3.3 billion pounds per year between 2009 and 2012, with most coming from Mexico, Peru, Ecuador, Brazil, and Guatemala . Thus, imports from the Philippines comprise a negligible share of total fresh mango imports, less than 0.002 percent. Given the Philippines’ current very small share and the proximity

of major Latin American sources, the additional quantity of fresh mango that may be importe d from the Philippines because of this rule is unlikely to make an appreciable difference in the total quantity imported. U.S. mango production , about 6.6 million pounds per year , is equivalent to 0.2 percent of imports. Most if not all mango farms are sm all entities in Florida, California, Texas, and Hawaii , where the fruit is primarily marketed locall y. An y effect for these farms and for mango importers of additional fresh mango imports from the Philippines will be insignificant , given the very small change expected to total imports

. 1 There will be no recordkeeping or other compliance costs associated with the proposed rule for U.S. entities, other than the import documentation normally required. T he APHI S

1 Public comment received on the proposed rule included objections based on the expectation that the rule would create e conomic hardships for Hawaii mango producers. As described, the additional quantity of mango that may be im ported from the Philippines because of this rule will most likely be inconsequential.3

Administrator has determin ed that this action , if promulgated, will not have a significant economic impact on a substantial number of small entities.4



### References Census of Agriculture, 20 12 , http://www.agcensus.usda.gov/Publications/2012/Full_Report/Volume_1,_Chapter_1_U S/ Economic Census, 20 07 , http://www.census.gov/econ/census/
U.S. Small Business Administration. U.S. Small Business Administration: Table of Small Business Size Standards Match to North American Industry Classification Sy stem http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf