Initial Regulatory Flexibility Analysis

Proposed Rule

Hass Avocados from Mexico; Importation into the 

Commonwealth of Puerto Rico and Other Changes

APHIS-2008-0060

U.S. Department of Agriculture

Animal and Plant Health Inspection Service

April 2010
i

Summary

We are proposing to amend our quarantine regulations to provide for the importation of 

Hass avocados into Puerto Rico under the same systems approach currently required in 

§ 319.56-30 for the importation of Hass variety avocados into the continental United States from 

Michoacán, Mexico, and to amend the regulations to provide for the Mexican NPPO to use an 

approved designee to inspect avocados for export. We are also proposing to amend the 

regulations to suspend importation of avocados from Michoacán, Mexico, only from specific 

orchards or packinghouses when seed pests are detected rather than suspending imports from the 

entire municipality where the affected orchards or packinghouses are located.

This analysis identifies avocado producers, importers, and wholesalers in Puerto Rico as 

the small entities most likely to be affected by this action and considers the effects of increased 

imports of avocados. Puerto Rico is a large net importer of avocados. Imports for 2007 totaled 

around 3,700 short tons while exports totaled only 8 short tons, as preliminarily reported by the 

Puerto Rican Department of Agriculture's Office of Agricultural Statistics.1 In other words, 

three-fifths of Puerto Rico’s avocado supply is imported. In addition, there may well be 

movement of avocado from the mainland United States to Puerto Rico, which would not be 

reported as imports. Based on the information presented in the analysis, we expect affected 

entities would experience minimal economic effects as a result of additional imports arriving in 

Puerto Rico from Mexico. 

 

1

Puerto Rico Dept. of Agriculture, Office of Agricultural Statistics. “18.58F23 Fresh Fruits.” 

November 13, 2007. p. 23.
ii

Table of Contents

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

Introduction......................................................................................................................... 1

Initial Regulatory Flexibility Analysis................................................................................ 1

Reasons Action is Being Considered.............................................................................. 1

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

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

Projected Reporting, Recordkeeping, and Other Compliance Requirements................. 7

Duplication, Overlap, or Conflict with Existing Rules and Regulations........................ 7

Alternatives to minimize Significant Economic Impacts of the Rule............................. 7
1

Introduction

We are proposing to amend our quarantine regulations to provide for the importation of 

Hass avocados into Puerto Rico under the same systems approach currently required in 

§ 319.56-30 for the importation of Hass variety avocados into the continental United States from 

Michoacán, Mexico, and to amend the regulations to provide for the Mexican NPPO to use an 

approved designee to inspect avocados for export. We are also proposing to amend the 

regulations to suspend importation of avocados from Michoacán, Mexico, only from specific 

orchards or packinghouses when seed pests are detected rather than suspending imports from the 

entire municipality where the affected orchards or packinghouses are located.

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

At the request of the Government of Mexico, APHIS is proposing to amend the fruits and 

vegetables regulations to allow commercial shipments of Hass avocados from Mexico into 

Puerto Rico. Hass avocados would be imported under certain conditions that would address the 

phytosanitary risks associated with the importation of Hass avocados from Michoacán, Mexico. 

Phytosanitary risks would be mitigated using the same systems approach that is currently 

employed for the importation of Hass avocados from Michoacán, Mexico, into the 50 States, as 

set forth in § 319.56-30. Those import requirements include trapping, orchard certification, 
2

limited production area, trace back labeling, pre-harvest orchard surveys for all pests, orchard 

sanitation, host resistance, post-harvest safeguards, fruit cutting and inspection at the 

packinghouse, port-of-arrival inspection and clearance activities. This action would allow for the 

importation of Hass avocados from Michoacán, Mexico, into Puerto Rico while continuing to 

provide protection against the introduction of quarantine pests. 

As a separate matter, the proposed rule would amend the regulations to provide that 

APHIS will suspend shipments from specific orchards or packing houses in Mexico where pests 

have been detected rather than from an entire municipality, as is currently required. Shipments 

to the United States are suspended from an entire municipality when certain pests are detected 

during semi-annual pest surveys, orchard surveys, packing house inspections, or other 

monitoring or inspection activities. APHIS has determined that suspension of shipments from an 

affected orchard or packing house rather than from an entire municipality would provide 

sufficient safeguards against pest introduction while minimizing trade disruptions. 

Objectives of and Legal Basis for the Rule

The objectives of the proposed rule are (1) to allow importation of Hass avocados from 

Mexico into Puerto Rico under the same phytosanitary restrictions as required for their entry into 

the 50 States, (2) to limit shipment suspensions to the particular orchards or packing houses in 

Mexico where pests have been detected rather than an entire municipality, and (3) provide for the 

Mexican NPPO to use an approved designee to inspect avocados for export.

The legal basis for the proposed rule is the Plant Protection Act (7 U.S.C. 7701 et. seq. It 

authorizes the Secretary of Agriculture to implement programs and policies designed to prevent 

the introduction and spread of plant pests and diseases.
3

Affected Small Entities

Businesses most likely to be affected by this rule would be avocado producers in Puerto 

Rico. Avocado production is classified under North American Industry Classification System 

(NAICS) 111339, other non-citrus fruit farming. The Small Business Administration (SBA) 

small-entity standard for avocado producers is annual sales of not more than $750,000. In the 

United States in 2002, NASS reported that 95 percent of fruit and tree nut farming (NAICS 

1113) entities made less than $500,000. Most, if not all, avocado producers in Puerto Rico are 

presumably small entities.

Puerto Rican importers and wholesalers of avocado could be affected by the proposed 

rule as well. These industries and their small-entity size standards are: Fresh fruit and vegetable 

wholesalers (NAICS 4224280, not more than 100 employees), wholesalers and other grocery 

stores (NAICS 445110, not more than $23 million in annual receipts), warehouse clubs and 

superstores (NAICS 452910, not more than $23 million in annual receipts), and fruit and 

vegetable markets (NAICS 445230, not more than $6 million in annual receipts). Many of the 

entities that comprise these industries in the 50 States are small. We can assume, similarly, that 

many of these entities in Puerto Rico would be small.

The 2002 Census of Agriculture reported that 1,217 farms in Puerto Rico harvested 

avocados, an increase from 1,106 farms in 1998. Over this same period, however, avocado 

acreage decreased from 1,567 acres to 1,104 acres, almost a 30 percent drop. In the 2006-2007 

season (July-June), avocado production in Puerto Rico was around 2,100 short tons, compared to 

approximately 1,900 short tons for the 2005-2006 season.2

 

2

Puerto Rico Department of Agriculture. Agricultural Statistics. “Ingreso Bruto Agricola.” Total 

production of avocados, p. 3. Converted as 1 avocado = 0.5 lbs. 

http://www.gobierno.pr/NR/rdonlyres/CF939105-E2DA-44EC-A0DF-
4

Puerto Rico is a large net importer of avocados. Imports for 2007 totaled around 3,700 

short tons while exports totaled only 8 short tons, as preliminarily reported by the Puerto Rican 

Department of Agriculture's Office of Agricultural Statistics.3 In other words, three-fifths of 

Puerto Rico’s avocado supply is imported. In addition, there may well be movement of avocado 

from the mainland United States to Puerto Rico, which would not be reported as imports. 

We note that there would not be production constraints for Mexico as far as the 

quantity of Hass avocados that it could export to Puerto Rico. Estimated Hass avocado 

production in the State of Michoacán for the 2007-2008 season (August through July) totaled 

about 650,000 short tons, produced by 20,000 growers on more than 227,000 acres.4

The United States is already a major market for Mexico’s Hass avocado industry. 

The total volume of U.S. avocado imports (determined by the Secretary of the U.S. Department 

of Agriculture (USDA) to be Hass-like) in the 2006-2007 season (August-July) was about 

330,000 short tons, valued at $417 million. Mexico accounted for over 60 percent of U.S. 

imports of Hass avocados (more than 201,000 short tons) and nearly 80 percent of the total value 

of Hass avocado imports (over $330 million).5 Other foreign avocado imports into the United 

States come from Chile, New Zealand, and the Dominican Republic. 

In the 2006-2007 season,6the United States commercially produced more than 149,000 

short tons of avocados worth approximately $208 million in production value.7 California 

 

41622555F06A/0/IngresoBrutoAgricola2006_07.pdf

3

Puerto Rico Dept. of Agriculture, Office of Agricultural Statistics. “18.58F23 Fresh Fruits” 13 Nov. 2007. 

p. 23

4

Socios Unidos en Materia Agricula. “Estimated Hass Avocado Production in Michoacan State for the 

2007-2008 season.” Production in Tons. http://www.masuma.com.mx/

5 USDA Foreign Agricultural Service. FASonline. Harmonized Schedule (HS) code search HS 0804400010. 

Converted from metric tons. August-July total based on monthly values.

6

California’s season runs October-November, Florida’s season runs May-June.

7 USDA Economic Research Service (ERS). Fruit and Tree Nuts Situation and Outlook Yearbook 2007. 
5

produces more than 90 percent of all avocados grown in the United States. Ninety-five percent 

of California avocados are of the Hass variety.

Our lack of knowledge regarding certain trade and production statistics prevents us from 

being able to project whether the potential impact of the proposed rule may be significant for a 

substantial number of Puerto Rico’s small-entity avocado producers, importers, and wholesalers. 

These unknowns include: The quantity of Hass avocados that Mexico can be expected to export 

to Puerto Rico; the percentage shares of Hass and non-Hass avocado varieties grown in Puerto 

Rico and imported by Puerto Rico; Puerto Rico’s current sources of imports; the varieties and 

quantities of avocados shipped from the U.S. mainland to Puerto Rico; the extent to which 

Puerto Rico’s avocado producers rely upon avocado production for total farm revenue; and price 

and quality comparisons for Mexican Hass avocados and those grown in Puerto Rico.

We welcome public comment that would inform our understanding of Puerto Rico’s 

production and trade in avocados, especially Hass avocados, and the potential impact of the rule 

for Puerto Rico’s small entities.

The proposed rule would also allow for the suspension of shipments from orchards and 

packing houses in Mexico where pests are found, rather than from entire municipalities. This 

change would benefit U.S. importers and consumers by reducing the magnitude of pest-related 

disruptions to Hass avocado imports from Mexico while maintaining effective phytosanitary 

safeguards. There are 41 listed firms that import Hass avocados from Mexico, most of which are 

located in California, Texas and Illinois (see table 1). As indicated above, most likely at least 

some of these entities are small.

 

Oct. 2007. p. 46.
6

Table 1.−U.S. importers of Hass avocados from Mexico

Arizona 4

California 16

Florida 1

Georgia 1

Illinois 6

Massachusetts 1

New York 1

Ohio 1

Texas 10

Total 41

Source: Association of Michoacán Avocado Growers, Packers and Exporters. 

AvocadosfromMexico.com, 2007.

In order to certify that the Hass avocados have been produced in accordance with the 

systems approach, the Mexican NPPO has requested to be allowed to use an approved designee 

to perform those functions. This change would not be expected to have any effects on any 

entities, as regulated entities would still have to comply with the provisions of the regulations; 

this change would simply allow a designee approved by the Mexican NPPO, rather than the 

NPPO itself, to perform certification functions.
7

Projected Reporting, Recordkeeping, and Other Compliance 

Requirements

The proposed rule would not entail reporting, recordkeeping, or other compliance 

requirements for Puerto Rican entities beyond those already required for the importation of fresh 

avocados into Puerto Rico.

Duplication, Overlap, or Conflict with Existing Rules and Regulations

APHIS has not identified any duplication, overlap, or conflict of the proposed [interim]

rule with other Federal rules.

Alternatives to minimize Significant Economic Impacts of the Rule

Based on our review of available information, APHIS does not expect the proposed 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.