This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

67379 

Vol. 76, No. 211 

Tuesday, November 1, 2011 

DEPARTMENT OF AGRICULTURE 

Animal and Plant Health Inspection 

Service 

7 CFR Part 319 

[Docket No. APHIS–2011–0073] 

RIN 0579–AD54 

Importation of Dracaena Plants From 

Costa Rica 

AGENCY: Animal and Plant Health 

Inspection Service, USDA. 

ACTION: Proposed rule. 

SUMMARY: We are proposing to amend 

the plants for planting regulations to 

provide conditions for the importation 

into the continental United States of 

Dracaena spp. plants from Costa Rica. 

These conditions would apply to plants 

less than 460 mm in length, which are 

currently allowed to be imported, and 

would also allow for the importation of 

plants over 460 mm and up to 1,371.6 

mm in length, which are currently 

prohibited. As a condition of entry, 

Dracaena spp. plants from Costa Rica 

would have to be produced in 

accordance with integrated pest risk 

management measures that would 

include requirements for registration of 

places of production and 

packinghouses, a pest management 

plan, inspection for quarantine pests, 

sanitation, and traceability from place of 

production through the packing and 

export facility and to the port of entry 

into the United States. All Dracaena 

spp. plants from Costa Rica would also 

be required to be accompanied by a 

phytosanitary certificate with an 

additional declaration stating that all 

conditions for the importation of the 

plants have been met and that the 

consignment of plants has been 

inspected and found free of quarantine 

pests. This action would allow for the 

importation of oversized Dracaena spp. 

plants from Costa Rica into the United 

States while continuing to provide 

protection against the introduction of 

quarantine pests. 

DATES: We will consider all comments 

that we receive on or before January 3, 

2012. 

ADDRESSES: You may submit comments 

by either of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov/ 

#!documentDetail;D=APHIS-2011-0073- 

0001. 

• Postal Mail/Commercial Delivery: 

Send your comment to Docket No. 

APHIS–2011–0073, Regulatory Analysis 

and Development, PPD, APHIS, Station 

3A–03.8, 4700 River Road Unit 118, 

Riverdale, MD 20737–1238. 

Supporting documents and any 

comments we receive on this docket 

may be viewed at http:// 

www.regulations.gov/ 

#!docketDetail;D=APHIS-2011-0073 or 

in our reading room, which is located in 

room 1141 of the USDA South Building, 

14th Street and Independence Avenue 

SW., Washington, DC. Normal reading 

room hours are 8 a.m. to 4:30 p.m., 

Monday through Friday, except 

holidays. To be sure someone is there to 

help you, please call (202) 690–2817 

before coming. 

FOR FURTHER INFORMATION CONTACT: Mr. 

William D. Aley, Senior Import 

Specialist, Plants for Planting Policy, 

PPQ, APHIS, 4700 River Road Unit 133, 

Riverdale, MD 20737–1231; (301) 734– 

5057. 

SUPPLEMENTARY INFORMATION: 

Background 

The regulations in ‘‘Subpart—Plants 

for Planting’’ (7 CFR 319.37 through 

319.37–14, referred to below as the 

regulations) restrict, among other things, 

the importation of living plants, plant 

parts, seeds, and plant cuttings for 

planting to prevent the introduction and 

dissemination of plant pests that are 

new to or not widely distributed within 

the United States. 

Dracaena is a genus of about 40 

species of tree- and shrub-like plants. 

Several species are grown as 

houseplants for their decorative straplike foliage, low maintenance 

requirements, and tolerance of a wide 

range of growing conditions. Popular 

Dracaena spp. houseplants include 

Dracaena fragrans, commonly known as 

the corn plant, and Dracaena 

sanderiana, commonly known as lucky 

bamboo. 

Currently, whole and intact Dracaena 

spp. plants (including roots, stems, and 

leaves) may be imported into the United 

States only if they meet the size 

requirements in § 319.37–2(b)(6)(i) and 

other general requirements in the 

regulations. The regulations currently 

allow only Dracaena spp. plants less 

than 460 mm (approximately 18 inches) 

in length. The size requirement was 

established because plants of that size 

are easily inspected and, if necessary, 

treated for pests; the size and density of 

growth of larger plants makes them 

more difficult to inspect and treat. 

The Animal and Plant Health 

Inspection Service (APHIS) has received 

a request from the national plant 

protection organization (NPPO) of Costa 

Rica to increase the maximum allowable 

size of Dracaena plants imported from 

Costa Rica to 137.16 centimeters 

(approximately 54 inches). As part of 

our evaluation of Costa Rica’s request, 

we prepared a pest risk assessment 

(PRA) and a risk management 

document. Copies of the PRA and the 

risk management document may be 

obtained from the person listed under 

FOR FURTHER INFORMATION CONTACT or 

viewed on the Regulations.gov Web site 

(see ADDRESSES above for instructions 

for accessing Regulations.gov). 

The PRA, titled ‘‘Importation of 

Oversized Dracaena spp. As 

Ornamental Plants from Costa Rica into 

the Continental United States,’’ 

evaluates the risks associated with the 

importation of Dracaena plants into the 

continental United States (the lower 48 

States, the District of Columbia, and 

Alaska) from Costa Rica, including 

plants under 460 mm in height. Because 

exports of Dracaena spp. plants from 

Costa Rica to Hawaii and U.S. territories 

have historically been low, the PRA 

does not consider the risks associated 

with importation of oversized Dracaena 

spp. plants into Hawaii or the 

territories. The risk management 

document lists the phytosanitary 

measures necessary to ensure the safe 

importation into the continental United 

States of Dracaena plants from Costa 

Rica. 

The PRA identified 15 pests of 

quarantine significance that could be 

introduced into the United States in 

consignments of Dracaena plants from 

Costa Rica: 

• Ancistrocercus circumdatus, a 

katydid; 

• Caldwelliola reservata, a 

leafhopper; 


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• Chaetanaphothrips signipennis, 

banana rust thrips; 

• Coccus viridis, the green scale; 

• Diplosolenodes occidentalis, the 

spotted leatherleaf slug; 

• Erioloides consobrinus, a katydid; 

• Neoconocephalus affinis, the rattler 

conehead katydid; 

• Oncometopia clarior, the blue 

sharpshooter; 

• Ovachlamys fulgens, a helicaronid 

snail; 

• Palliferra costaricensis, the Costa 

Rica mantle slug; 

• Planococcus minor, the passionvine 

mealybug; 

• Pseudococcus landoi, the lando 

mealybug; 

• Sarasinula plebeia, the Caribbean 

leatherleaf slug; 

• Succinea costaricana, an amber 

snail; and 

• Xylosandrus morigerus, the brown 

coffee twig beetle. 

In the PRA, the likelihood and 

consequences of introducing these pests 

into the continental United States are 

considered. Five of the pests: 

Ancistrocercus circumdatus, 

Chaetanaphothrips signipennis, 

Erioloides consobrinus, 

Neoconocephalus affinis, and Pallifera 

costaricensis, were assigned a medium 

pest risk potential. The remaining pests 

were assigned a high pest risk potential. 

The PRA states that measures beyond 

standard port-of-entry inspection are 

required to mitigate the risks posed by 

these plant pests, and provides a 

number of potential options for such 

measures. After consideration of these 

options, we have prepared a risk 

management document to recommend 

specific measures to mitigate these risks. 

Based on the findings of our PRA and 

risk management document, we are 

proposing to allow the importation of 

Dracaena spp. plants into the 

continental United States, subject to 

integrated pest risk management 

measures, also known as a systems 

approach. Under integrated pest risk 

management measures, a set of 

phytosanitary conditions, at least two of 

which have an independent effect in 

mitigating the pest risk associated with 

the movement of commodities, is 

specified, whereby plants for planting 

may be imported into the United States 

from countries that are not free of 

certain plant pests. We are proposing to 

add integrated pest risk management 

measures governing the importation of 

Dracaena spp. plants from Costa Rica 

into the continental United States to the 

regulations in a new § 319.37–5(y). The 

proposed integrated pest risk 

management measures are discussed in 

greater detail below. 

General Requirements 

Paragraph (y) of § 319.37–5 would set 

out requirements for the NPPO of Costa 

Rica and for growers producing 

Dracaena plants for export to the 

continental United States. Dracaena 

spp. plants from Costa Rica would not 

be allowed to be imported into Hawaii, 

Puerto Rico, and U.S. territories. These 

requirements reflect the scope of the 

PRA, which did not specifically assess 

the risks associated with the 

importation of oversized Dracaena spp. 

plants to Hawaii, Puerto Rico, and U.S. 

territories, but also reflect the overall 

pest risk the PRA describes. 

Paragraph (y)(1) would require that 

Dracaena plants from Costa Rica not 

exceed 1,371.6 mm (approximately 54 

inches) in length from the soil line (or 

top of the rooting zone for plants 

produced by air layering) to the farthest 

terminal growing point. 

Paragraph (y)(2) would require the 

NPPO of Costa Rica to provide a 

bilateral workplan to APHIS that details 

the activities that the NPPO will, subject 

to APHIS’ approval of the workplan, 

carry out to meet the requirements of 

proposed § 319.37–5(y). A bilateral 

workplan is an agreement between 

APHIS’ Plant Protection and Quarantine 

program, officials of the NPPO of a 

foreign government, and, when 

necessary, foreign commercial entities 

that specifies in detail the phytosanitary 

measures that will comply with our 

regulations governing the import or 

export of a specific commodity. Bilateral 

workplans establish detailed procedures 

and guidance for the day-to-day 

operations of specific import/export 

programs. Workplans also establish how 

specific phytosanitary issues are dealt 

with in the exporting country and make 

clear who is responsible for dealing 

with those issues. The implementation 

of integrated pest risk management 

measures typically requires a bilateral 

workplan to be developed. 

Phytosanitary Certificate 

Paragraph (y)(3) would require the 

phytosanitary certificate required by 

§ 319.37–4 that accompanies each 

consignment of Dracaena plants to 

contain additional declarations that the 

plants in the consignment have been 

produced, packed, stored, and exported 

in accordance with the requirements of 

proposed 7 CFR 319.37–5(y) and the 

bilateral workplan, and that the 

consignment has been inspected and 

found free of quarantine pests. 

Requiring a phytosanitary certificate 

would ensure that the NPPO of Costa 

Rica has inspected the plants and 

certified that the plants meet the 

conditions for export to the United 

States. 

Participant and Facility Registration 

Paragraph (y)(4) would require that 

producers, packers, and exporters of 

Dracaena plants be registered with the 

NPPO of Costa Rica. Dracaena plants 

would have to be grown, packed, stored, 

and exported in compliance with a 

written agreement between the 

participant and the NPPO of Costa Rica, 

and the participant would have to agree 

to comply with the provisions of the 

regulations and the bilateral workplan. 

In addition, paragraph (y)(5) would 

require production, packing, and export 

facilities to be inspected, approved, and 

registered by the NPPO of Costa Rica for 

inclusion in the program. Registered 

packing and export facilities processing 

Dracaena plants for export to the United 

States would only be allowed to accept 

plants from registered production 

facilities where plants are grown in 

compliance with the proposed 

requirements and the bilateral 

workplan. The NPPO of Costa Rica 

would have to provide APHIS with 

access to the lists of registered 

participants and facilities annually and 

when changes occur. 

Registration of participants and 

facilities would allow the NPPO of 

Costa Rica to conduct site visits and 

inspections. It would also allow 

traceback to the production site if pest 

problems were found on Dracaena 

plants shipped to the United States. 

Problem production sites could then be 

removed from the program until further 

mitigation measures were taken to 

reduce pest populations. 

Training 

Paragraph (y)(6) would require 

participants and personnel at approved 

production, packing, and export 

facilities to be trained in the 

requirements of proposed paragraph (y) 

and the bilateral workplan, and in 

recognizing the quarantine pests listed 

earlier. Training records would have to 

be maintained and made available to the 

NPPO of Costa Rica and APHIS upon 

request. 

Pest Management Program 

Paragraph (y)(7) would require that 

participants establish a pest 

management program for all approved 

production, packing, and export 

facilities. Pest management programs 

would be tailored to each individual site 

to address local concerns, but would 

have to include field or facility scouting, 

monitoring, and control of pests, and 

would have to be approved and 

monitored by the NPPO of Costa Rica. 


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APHIS may visit sites to inspect and 

monitor the pest management program. 

Each approved facility would be 

required to have a trained, dedicated 

person to supervise the pest 

management program. Records of pest 

management activities would have to be 

maintained and made available to the 

NPPO of Costa Rica and APHIS upon 

request. 

Sanitation 

Paragraph (y)(8) would require that 

sanitation measures be maintained at 

approved production, packing, and 

export facilities. Fallen or discarded 

plant material and debris, or plants with 

pests, would have to be removed and 

could not be included in field 

containers brought from production to 

packing facilities for export. Packing 

facilities would also have to be free of 

sand, soil, earth, and plants pests, and 

phytosanitary practices adequate to 

exclude pests would have to be 

employed. In addition, equipment, 

materials, and tools would have to be 

sanitized to avoid spreading pests or to 

prevent recontamination. 

Inspections 

Paragraph (y)(9) would require that 

dedicated, trained personnel at 

approved facilities conduct inspections 

at least once weekly, and that the NPPO 

of Costa Rica conduct inspections at 

least once monthly. Inspections would 

include, but would not be limited to, 

approved production, packing, and 

export facilities as well as packing 

materials and shipping containers. 

Inspection dates and results would have 

to be recorded and would have to be 

made available to APHIS upon request. 

Traceability 

Paragraph (y)(10) would require that 

participants establish a traceability 

system approved and audited by the 

NPPO of Costa Rica and APHIS. The 

identity and origin of Dracaena spp. 

plants would have to be maintained 

from the production unit through the 

packing and export facilities to the port 

of entry in the United States. A 

traceability system would allow for a 

traceback investigation in the event of a 

pest detection. 

Recordkeeping 

Paragraph (y)(11) would require that 

participants maintain records of 

program activities, including corrective 

measures, for a minimum of 3 years. 

The records would have to be made 

available to the NPPO of Costa Rica and 

APHIS on request. 

Ineligibility for Participation 

Paragraph (y)(12) would state that 

persons who produce, pack, or ship 

Dracaena spp. plants would be 

ineligible for participation in the export 

program for Dracaena spp. plants 

established by the NPPO of Costa Rica 

and their production sites or packing or 

export facilities would lose approved 

status if live specimens of the 

quarantine pests listed above are found 

in a production site or in shipments of 

plants, or if growers violate the 

requirements set out in the regulations 

or required under the export program 

established by the NPPO of Costa Rica. 

Paragraph (y)(12) would also provide for 

conditions under which a grower may 

be reinstated. 

Trust Fund 

Paragraph (y)(13) would require that 

the Government of Costa Rica enter into 

a trust fund agreement with APHIS 

before each growing season. The 

Government of Costa Rica or its 

designated representative would be 

required to pay in advance all estimated 

costs that APHIS would expect to incur 

through its involvement in overseeing 

the execution of the requirements of the 

certification programs described above. 

These costs would include the 

administrative expenses incurred in 

conducting the services enumerated and 

all salaries (including overtime and the 

Federal share of employee benefits), 

travel expenses (including per diem 

expenses), and other incidental 

expenses incurred by inspectors in 

performing these services. 

Miscellaneous Changes 

Because we are proposing to require 

that all Dracaena spp. plants from Costa 

Rica be imported into the United States 

subject to a systems approach, we also 

propose to amend the list of prohibited 

articles in § 319.37–2(a) to state that 

Dracaena spp. plants not meeting the 

conditions for import in § 319.37–5(y) 

would not be allowed to be imported 

into the United States. We are also 

proposing to amend § 319.37–2(b)(6)(1) 

to state that Dracaena spp. plants from 

Costa Rica may be imported into the 

continental United States under the 

provisions of § 319.37–5(y). 

Executive Order 12866 and Regulatory 

Flexibility Act 

This proposed rule has been 

determined to be not significant for the 

purposes of Executive Order 12866 and, 

therefore, has not been reviewed by the 

Office of Management and Budget. 

In accordance with the Regulatory 

Flexibility Act, we have analyzed the 

potential economic effects of this action 

on small entities. The analysis is 

summarized below. Copies of the full 

analysis are available from the person 

listed under FOR FURTHER INFORMATION

CONTACT or on the Regulations.gov Web 

site (see ADDRESSES above for 

instructions for accessing 

Regulations.gov). 

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. 

Executive Order 12988 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. If this proposed rule is 

adopted: (1) All State and local laws and 

regulations that are inconsistent with 

this rule will be preempted; (2) no 

retroactive effect will be given to this 

rule; and (3) administrative proceedings 

will not be required before parties may 

file suit in court challenging this rule. 

National Environmental Policy Act 

To provide the public with 

documentation of APHIS’ review and 

analysis of any potential environmental 

impacts associated with the importation 

of oversized Dracaena spp. plants from 

Costa Rica, we have prepared an 


emcdonald on DSK5VPTVN1PROD with PROPOSALS
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environmental assessment. The 

environmental assessment was prepared 

in accordance with: (1) The National 

Environmental Policy Act of 1969 

(NEPA), as amended (42 U.S.C. 4321 et 

seq.), (2) regulations of the Council on 

Environmental Quality for 

implementing the procedural provisions 

of NEPA (40 CFR parts 1500–1508), (3) 

USDA regulations implementing NEPA 

(7 CFR part 1b), and (4) APHIS’ NEPA 

Implementing Procedures (7 CFR part 

372). 

The environmental assessment may 

be viewed on the Regulations.gov Web 

site or in our reading room. (A link to 

Regulations.gov and information on the 

location and hours of the reading room 

are provided under the heading 

ADDRESSES at the beginning of this 

proposed rule.) In addition, copies may 

be obtained by calling or writing to the 

individual listed under FOR FURTHER

INFORMATION CONTACT. 

Paperwork Reduction Act 

In accordance with section 3507(d) of 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the information 

collection or recordkeeping 

requirements included in this proposed 

rule have been submitted for approval to 

the Office of Management and Budget 

(OMB). Please send written comments 

to the Office of Information and 

Regulatory Affairs, OMB, Attention: 

Desk Officer for APHIS, Washington, DC 

20503. Please state that your comments 

refer to Docket No. APHIS–2011–0073. 

Please send a copy of your comments to: 

(1) Docket No. APHIS–2011–0073, 

Regulatory Analysis and Development, 

PPD, APHIS, Station 3A–03.8, 4700 

River Road Unit 118, Riverdale, MD 

20737–1238, and (2) Clearance Officer, 

OCIO, USDA, room 404–W, 14th Street 

and Independence Avenue, SW., 

Washington, DC 20250. A comment to 

OMB is best assured of having its full 

effect if OMB receives it within 30 days 

of publication of this proposed rule. 

Allowing the importation of Dracaena 

spp. plants into the United States from 

Costa Rica will require the completion 

of the following documents: Bilateral 

workplan, phytosanitary certificate with 

declaration, registration agreement, 

facility registration agreement, 

participant and personnel training, pest 

management program, inspections, 

traceability system, recordkeeping, 

detailed report with corrective actions, 

and a trust fund. 

We are soliciting comments from the 

public (as well as affected agencies) 

concerning our proposed information 

collection and recordkeeping 

requirements. These comments will 

help us: 

(1) Evaluate whether the proposed 

information collection is necessary for 

the proper performance of our agency s 

functions, including whether the 

information will have practical utility; 

(2) Evaluate the accuracy of our 

estimate of the burden of the proposed 

information collection, including the 

validity of the methodology and 

assumptions used; 

(3) Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

(4) Minimize the burden of the 

information collection on those who are 

to respond (such as through the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology; e.g., permitting 

electronic submission of responses). 

Estimate of burden: Public reporting 

burden for this collection of information 

is estimated to average 0.60008 hours 

per response. 

Respondents: Importers of Dracaena 

spp. plants and foreign officials. 

Estimated annual number of 

respondents: 97. 

Estimated annual number of 

responses per respondent: 25.5979. 

Estimated annual number of 

responses: 2,483. 

Estimated total annual burden on 

respondents: 1,490 hours. (Due to 

averaging, the total annual burden hours 

may not equal the product of the annual 

number of responses multiplied by the 

reporting burden per response.) 

Copies of this information collection 

can be obtained from Mrs. Celeste 

Sickles, APHIS’ Information Collection 

Coordinator, at (301) 851–2908. 

E-Government Act Compliance 

The Animal and Plant Health 

Inspection Service is committed to 

compliance with the E-Government Act 

to promote the use of the Internet and 

other information technologies, to 

provide increased opportunities for 

citizen access to Government 

information and services, and for other 

purposes. For information pertinent to 

E-Government Act compliance related 

to this proposed rule, please contact 

Mrs. Celeste Sickles, APHIS’ 

Information Collection Coordinator, at 

(301) 851–2908. 

List of Subjects in 7 CFR Part 319 

Coffee, Cotton, Fruits, Imports, Logs, 

Nursery stock, Plant diseases and pests, 

Quarantine, Reporting and 

recordkeeping requirements, Rice, 

Vegetables. 

Accordingly, we propose to amend 7 

CFR part 319 as follows: 

PART 319—FOREIGN QUARANTINE 

NOTICES 

1. The authority citation for part 319 

continues to read as follows: 

Authority: 7 U.S.C. 450, 7701–7772, and 

7781–7786; 21 U.S.C. 136 and 136a; 7 CFR 

2.22, 2.80, and 371.3. 

2. Section 319.37–2 is amended as 

follows: 

a. In the table in paragraph (a), by 

adding a new entry for ‘‘Dracaena spp. 

plants not meeting the conditions for 

import in § 319.37–5 (y)’’, in 

alphabetical order, to read as set forth 

below. 

b. In paragraph (b)(6)(i), by adding the 

words ‘‘Dracaena spp. plants from Costa 

Rica meeting the conditions of § 319.37– 

5(y),’’ after the citation ‘‘§ 319.37–5(q),’’. 

§ 319.37–2 Prohibited articles. 

(a) * * * 

Prohibited article (includes seeds 

only if specifically mentioned) 

Foreign places from 

which prohibited 

Plant pests existing in the places named and capable of being transported with 

the prohibited article 

*******

Dracaena spp. plants not meeting the conditions for import in 

§ 319.37–5(y).

Costa Rica ..................... Ancistrocercus circumdatus; Caldwelliola reservata; Chaetanaphothrips 

signipennis (banana rust thrips); Coccus viridis (green scale); Diplosolenodes 

occidentalis (spotted leatherleaf slug); Erioloides consobrinus; Neoconocephalus 

affinis (rattler conehead katydid); Oncometopia clarior (blue sharpshooter); 

Ovachlamys fulgens; Palliferra costaricensis (Costa Rica mantle slug); 

Planococcus minor (passionvine mealybug); Pseudococcus landoi (lando 

mealybug); Sarasinula plebeia (Caribbean leatherleaf slug); Succinea 

costaricana; Xylosandrus morigerus (brown coffee twig beetle). 

*******


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* * * * * 

3. In § 319.37–5, a new paragraph (y) 

is added to read as follows: 

§ 319.37–5 Special foreign inspection and 

certification requirements. 

* * * * * 

(y) Special foreign inspection and 

certification requirements for Dracaena 

spp. plants from Costa Rica. Dracaena 

spp. plants from Costa Rica may only be 

imported into the continental United 

States in accordance with the 

requirements of this paragraph (y), to 

prevent the plant pests Ancistrocercus 

circumdatus, Caldwelliola reservata, 

Chaetanaphothrips signipennis, Coccus 

viridis, Diplosolenodes occidentalis, 

Erioloides consobrinus, 

Neoconocephalus affinis, Oncometopia 

clarior, Ovachlamys fulgens, Palliferra 

costaricensis, Planococcus minor, 

Pseudococcus landoi, Sarasinula 

plebeia, Succinea costaricana, and 

Xylosandrus morigerus from entering 

the United States. 

(1) Size requirements. Dracaena spp. 

plants from Costa Rica imported into the 

continental United States may not 

exceed 1,371.6 mm (approximately 54 

inches) in length from the soil line (or 

top of the rooting zone for plants 

produced by air layering) to the farthest 

terminal growing point. 

(2) Bilateral workplan. The national 

plant protection organization (NPPO) of 

Costa Rica must provide a bilateral 

workplan to APHIS that details the 

activities that the NPPO of Costa Rica 

will, subject to APHIS’ approval of the 

workplan, carry out to meet the 

requirements of this paragraph (y). 

(3) Phytosanitary certificate. The 

phytosanitary certificate of inspection 

required by § 319.37–4 that 

accompanies each consignment of 

Dracaena spp. plants from Costa Rica 

must contain additional declarations 

that the plants in the consignment have 

been produced, packed, stored, and 

exported in accordance with the 

requirements of 7 CFR 319.37–5(y) and 

the bilateral workplan, and that the 

consignment has been inspected and 

found free of quarantine pests. 

(4) Participant registration and 

agreement. Persons in Costa Rica who 

produce, pack, or ship Dracaena spp. 

plants for export to the United States 

must: 

(i) Be registered and approved by the 

NPPO of Costa Rica; and 

(ii) Enter into an agreement with the 

NPPO of Costa Rica whereby the 

persons agree to participate in and 

follow the export program for Dracaena 

spp. plants established by the NPPO of 

Costa Rica. 

(5) Facility registration and 

agreement. Production, packing, and 

export facilities must be approved and 

registered by the NPPO of Costa Rica. 

Registered packing and export facilities 

may only accept plants from registered 

production facilities where plants are 

grown in compliance with the 

requirements of this paragraph (y) and 

the bilateral workplan. The NPPO of 

Costa Rica will provide APHIS with 

access to the list of registered facilities 

at least annually and when changes 

occur. 

(6) Training. Participants and 

personnel at approved production, 

packing, and export facilities must be 

trained in the requirements of this 

paragraph (y) and the bilateral workplan 

and in recognizing the quarantine listed 

in this paragraph (y). Training records 

must be maintained and made available 

to the NPPO of Costa Rica and APHIS 

on request. 

(7) Pest management program. 

Participants must establish a pest 

management program for all approved 

production, packing, and export 

facilities. Pest management programs 

must include field or facility scouting, 

monitoring, and control of target pests, 

and must be monitored and approved by 

the NPPO of Costa Rica. APHIS may 

visit sites to inspect and monitor the 

pest management program. Each 

approved facility must have a trained, 

dedicated person to supervise the pest 

management program. Records of pest 

management activities must be 

maintained and made available to the 

NPPO of Costa Rica and APHIS upon 

request. 

(8) Sanitation. Sanitation measures 

must be maintained at approved 

production, packing, and export 

facilities. Fallen or discarded plant 

material and debris, or plants with 

pests, must be removed and must not be 

included in field containers brought 

from production to packing facilities for 

export. Packing facilities must be free of 

sand, soil, earth, and plant pests, and 

phytosanitary practices adequate to 

exclude pests must be employed. 

Equipment, materials, and tools must be 

sanitized to avoid spreading pests or to 

prevent recontamination. 

(9) Inspections. Inspections 

undertaken in the export program for 

Dracaena spp. plants established by the 

NPPO of Costa Rica will include, but 

may not be limited to, the following: 

(i) Approved production, packing, 

and export facilities must be inspected 

by dedicated trained personnel at the 

approved facilities at least once weekly, 

and by the NPPO of Costa Rica at least 

once monthly. 

(ii) Packing materials and shipping 

containers for the plants must be 

approved by APHIS and inspected by 

the NPPO of Costa Rica to ensure that 

they do not introduce pests of concern 

to the plants. 

(iii) Inspection dates and results must 

be recorded and made available to 

APHIS upon request. 

(10) Traceability. Participants must 

establish a traceability system approved 

and audited by the NPPO of Costa Rica 

and APHIS. The identity and origin of 

the Dracaena spp. plants must be 

maintained from the production unit 

through the packing and export facilities 

and to the port of entry in the United 

States. 

(11) Recordkeeping. Participants must 

maintain records of program activities, 

including corrective measures, for a 

minimum of 3 years. Records must be 

made available to the NPPO of Costa 

Rica and APHIS on request. 

(12) Ineligibility for participation. (i) 

Persons who produce, pack, or ship 

Dracaena spp. plants will be ineligible 

for participation in the export program 

for Dracaena spp. plants and their 

production sites or packing or export 

facilities will lose approved status if: 

(A) Live pests are found in a 

production site; 

(B) Live pests are found in a shipment 

of plants; or 

(C) Persons who produce, pack, or 

ship Dracaena spp. plants violate the 

requirements set out in this section or 

required under the export program 

established by the NPPO of Costa Rica. 

(ii) A person who produces, packs, or 

ships Dracaena spp. plants may be 

reinstated, and that person’s production 

sites or packing or export facilities may 

regain approved status, by requesting 

reapproval and submitting a detailed 

report describing the corrective actions 

taken by the person. Reapproval will 

only be granted upon concurrence from 

the NPPO of Costa Rica and APHIS. 

(13) Trust fund. The Government of 

Costa Rica must enter into a trust fund 

agreement with APHIS before each 

growing season. The Government of 

Costa Rica or its designated 

representative is required to pay in 

advance all estimated costs that APHIS 

expects to incur through its involvement 

in overseeing the execution of paragraph 

(y) of this section. These costs will 

include administrative expenses 

incurred in conducting the services 

enumerated in paragraph (y) of this 

section and all salaries (including 

overtime and the Federal share of 

employee benefits), travel expenses 

(including per diem expenses), and 

other incidental expenses incurred by 

the inspectors in performing these 


emcdonald on DSK5VPTVN1PROD with PROPOSALS
67384 Federal Register / Vol. 76, No. 211 / Tuesday, November 1, 2011 / Proposed Rules 

services. The Government of Costa Rica 

or its designated representative is 

required to deposit a certified or 

cashier’s check with APHIS for the 

amount of the costs estimated by 

APHIS. If the deposit is not sufficient to 

meet all costs incurred by APHIS, the 

agreement further requires the 

Government of Costa Rica or its 

designated representative to deposit 

with APHIS a certified or cashier’s 

check for the amount of the remaining 

costs, as determined by APHIS, before 

the services will be completed. After a 

final audit at the conclusion of each 

shipping season, any overpayment of 

funds would be returned to the 

Government of Costa Rica or its 

designated representative or held on 

account until needed. 

* * * * * 

Done in Washington, DC, this 26th day of 

October 2011. 

Kevin Shea, 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. 2011–28253 Filed 10–31–11; 8:45 am] 

BILLING CODE 3410–34–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 31 and 301 

[REG–136565–09] 

RIN 1545–BJ06 

Extending Religious and Family 

Member FICA and FUTA Exceptions To 

Disregard Entities 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations. 

SUMMARY: In the Rules and Regulations 

section of this issue of the Federal 

Register, the IRS is issuing temporary 

regulations to extend the exceptions 

from taxes under the Federal Insurance 

Contributions Act (‘‘FICA’’) and the 

Federal Unemployment Tax Act 

(‘‘FUTA’’) under sections 3121(b)(3), 

3127, and 3306(c)(5) to entities that are 

disregarded as separate from their 

owners for federal tax purposes. The 

temporary regulations also clarify the 

existing rule that the owners of 

disregarded entities, except for qualified 

subchapter S subsidiaries, are 

responsible for backup withholding and 

related information reporting 

requirements under section 3406. The 

text of those regulations also serves as 

the text of these proposed regulations. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by January 30, 2012. 

ADDRESSES: Send submissions to 

CC:PA:LPD:PR (REG–136565–09), room 

5203, Internal Revenue Service, PO Box 

7604, Ben Franklin Station, Washington, 

DC 20044. Submissions may be hand 

delivered Monday through Friday 

between the hours of 8 a.m. to 4 p.m. 

to CC:PA:LPD:PR (REG–136565–09), 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Ave. NW., 

Washington, DC. Alternatively, 

taxpayers may submit electronic 

comments via the Federal eRulemaking 

Portal at http://www.regulations.gov 

(indicate IRS and REG–136565–09). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Joseph Perera, at (202) 622–6040; 

concerning submissions of comments or 

requests for a hearing, Oluwafunmilayo 

(Funmi) Taylor at (202) 622–7180 (not 

toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

Temporary regulations in the Rules 

and Regulations section of this issue of 

the Federal Register contain 

amendments to Employment Tax 

Regulations (26 CFR part 31) and the 

Procedure and Administration 

Regulations (26 CFR part 301). The text 

of those regulations also serves as the 

text of these proposed regulations. The 

preamble to the temporary regulations 

explains the temporary regulations and 

these proposed regulations. Generally, 

the regulations allow certain 

disregarded entities under § 301.7701–2 

that are treated as corporations for 

employment tax purposes, to qualify for 

the FICA and FUTA exceptions of 

sections 3121(b)(3), 3127, and 3306(c)(5) 

by treating the owner of the disregarded 

entity as the employer for purposes of 

applying those sections. Additionally, 

the regulations clarify the existing rule 

that the owners of disregarded entities, 

other than qualified subchapter S 

subsidiaries are responsible for backup 

withholding and related information 

reporting requirements on reportable 

payments. 

Proposed Effective/Applicability Date 

The regulations, as proposed, apply to 

wages paid on or after November 1, 

2011. 

However, the rules in these proposed 

regulations may be relied on by 

taxpayers for wages paid after December 

31, 2008. 

Special Analyses 

It has been determined that this notice 

of proposed rulemaking is not a 

significant regulatory action as defined 

in Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

has also been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations, and because the 

regulations do not impose a collection 

of information on small entities, the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) does not apply. Pursuant to 

section 7805(f) of the Code, this notice 

of proposed rulemaking will be 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. 

Comments and Public Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

written (a signed original and eight (8) 

copies) or electronic comments that are 

submitted timely to the IRS. The IRS 

and Treasury Department request 

comments on the clarity of the proposed 

rules and how they can be made easier 

to understand. All comments will be 

made available for public inspection 

and copying. 

Drafting Information 

The principal author of these 

regulations is Joseph Perera, Office of 

Associate Chief Counsel (Tax Exempt & 

Government Entities). 

List of Subjects 

26 CFR Part 31 

Employment taxes, Income Taxes, 

Penalties, Pensions, Railroad retirement, 

Reporting and recordkeeping 

requirements, Social Security, 

Unemployment compensation. 

26 CFR Part 301 

Employment taxes, Estate taxes, 

Excise taxes, Gift taxes, Income taxes, 

Penalties, Reporting and recording 

requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR parts 31 and 301 

are proposed to be amended as follows: 

PART 31—EMPLOYMENT TAXES AND 

COLLECTION OF INCOME TAX AT 

SOURCE 

Paragraph 1. The authority citation 

for part 31 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 


emcdonald on DSK5VPTVN1PROD with PROPOSALS