### U n i ted S t a

t e s

D e p a r t m e n t of

A gri c u l t ure

A ni m al and

Pl a nt H e a l t

h

I n s pe c t i o n

Ser v ice

July 20 1 3 Anal ys is in S u p port o f Ce r ti f i c a tion th a t the

Rule w ill n ot h a v e a S ignif i cant E conomic

Impa c t on a S u b s tantial N u m b er of S m all

E ntities

Final Rule

A PH IS 2012

- 0 0 42

RIN 057 9

- A D6 9

Impo r tati o n of Fre s h Bean s ( 

### P ha s eolus

v ulgaris L )

, S h e lled or i n P od s , from Jord a n

Po l icy & Prog r am D e v e lo p m e n t

Po l icy A nal y sis & D e ve lo p m e n t

### S ummary

i

This an a l y sis e x a min e s the e x p ec ted e c onomic imp ac t for U.S. small entities of a final

rule that will a llow import a tion of f r e s h b ea ns ( Phas e olus v ulgaris L ) , shell e d o r in pods ( F

r e n c h

b e a ns, g re e n b ea ns, snap be a ns, a n d string b e a ns), f rom J o r d a n into the c ontin e ntal U nit e d

S tat e s.

The Small B usiness Ad m inistr a tion’s smal l

- e nti t y stand a rd f or U.S. f a rms t h a t produ c e

f r e sh b e a ns is an n u a l r e c e ipts of not more than $ 7 50,000. I n 2007, t h e a v e ra g e m a rk e t value o f

s a les b y t h e 15,654 U.S. f a rms that p r odu c e d snap b ea ns for the f r e sh m a r k e t w a s ab o ut $25,400,

w e ll b e low the small

- e nt i t y standard.

J o r d a n e x p ec ts to e x port 200 metric tons of f r e sh b ea ns to the c ontin e ntal United St a tes

a nnu a l l y

. T his q u a nti t y i s e quival e nt to less than on e

- tenth of one p e rc e nt of U.S f r e sh snap b ea n

p r odu c tion. W hile most e ntiti e s that m a y be a ff e c ted b y the final rule a re small, the impa c t of the

r ule will be mi n o r . The final rul e will not h a ve a si g n i fi c a nt ec onomic imp ac t on a s u bstanti a l

numb e r of small e ntiti e s.1



### Introduction

This an a l y sis pro v ides t h e b a sis, a s r e qu i r e d b y t h e R e g u l a to r y F l e x ibil i t y A c t, for

ce rtifi c a tion b y the AP H IS Administr a tor th a t the final rul e , if p romulgat e d, will not have a

si g nifi ca nt ec onomic imp ac t on a substantial num b e r of small e ntiti e s.

AP H I S r ece i v e d a r e qu e s t f r om the Kin g dom of J o r d a n to autho r i z e the importation

of f r e sh b e a ns ( Phas e olus v ulgaris L ), sh e ll e d or in p ods ( F r e n c h b e a ns, g re e n b ea ns, snap

be a ns, a nd string b ea ns )

, f r om J o r d a n into the c ontin e nt a l Unit e d Stat e s. T h e final r ule will

a llow import a tion of only f r e sh P. v ulgaris f

r om J o r d a n. I

n this an a l y sis, we use the

c ommon n a me ‘ snap b ea n’ wh e n r e f e rring to f r e sh P

. v ulgaris

.

I n r e sponse to J o r d a n ’ s r e qu e st, AP H I S p roduc e d a p e st risk a n a l y sis a nd r i sk

mana g e me n t docu m e nt. The l a tt e r id e ntifi e s the risk miti g a tion me a sur e s t h a t will pr e v e nt the

introdu c tion of plant p e sts in comme r c ial shipme n ts of f r e sh b e a ns f

r om J o r d a n. Th e se

m e a sur e s include p a c kin g hou s e s a ppro ve d b y J o r d a n ’s n a t i on a l pl a nt p r ote c tion o r g a ni z a tion,

and w a shin g a nd c utting o r s h re ddin g requirements

. On l y c omm e r c ial c onsi g n m e nts of b ea ns

will be e li g ible f

or import a tio n

, a nd th e y will ne e d to be a cc om p a nied b y a c e rt i fi c a t e a tt e sting

that p h y tosanit ar y r e quir e m e nts have b e e n met.

The R e g ulato r y F l e x ibili t y A c t r e qui r e s a g e n c ies t o e v a luate the po t e nti a l e f f ec ts of t h e ir

proposed a nd fi n a l rul e s on sm a ll busin e ss, sm a ll o r g a ni z a tions a nd sm a ll g ov e rnm e ntal

jurisdi c tions. S ec tion 6 0 4 of the A c t r e quir e s a n a g e n c y to pr e p a re a final re g u l a to r y f le x ibil i t y

a n a l y sis ( F R FA) that d e s c ri b e s the e x p ec ted impa c t of t h e r ule o n sm a ll e ntiti e s

. I n place of the

F R F A, the h e a d of the a g e n c y m a y c e rti f y that this final rule will not h a ve a si g n i fi c a nt e c onomic

imp ac t on subst a nti a l numb e r of sm a ll e ntiti e s. U .S P roduction and T rade2

Sn a p b ea ns a r e pro d u c e d ac ross the U nit e d Stat e s

, a nd a re m ar k e t e d a s e ith e r f r e sh o r for

p r o ce ssi n g

. In 2011, fresh beans accounted for about 26 percent of U.S snap bean production.

T a ble 1 sho w s that a nnu a l f

r e sh snap b e a n pr o d u c tion in the United St a tes f r om 2008 to 2011

a v e ra g ed a bout 244 ,000 met r ic tons (MT )

. J o r d a n e x p ec ts to e x port 200 MT o f f r e sh b ea ns to

the c ontin e ntal United St a tes p e r y e a r, that is, less than on e

- tenth of o n e p e r ce nt of U .S fr e sh

snap b ea n p r od u c tion.

T a ble 1. A nnu a l U.S f

resh snap b ea n prod u c tion, 2008

- 2011

Year Production (MT)

2008 264,172

2009 237,002

2010 229,608

2011 243,443

Average (2008

- 2011) 243,556

Source: National Agricultural Statistics Service, Vegetables and Melons Statistics

F our St a tes ( F lorid a , Cal i fo r nia, Ge o r g ia, a nd N e w Yo r k) supp l ied about 80 p e r c e nt of

f r e sh s n a p b ea ns produced in the United States , 2008

- 2011 ( t a ble 2). 1 Florida was the dominant

produ c e r ( 42 p e r c e n t ), follow e d b y C a l ifo r nia ( 17 p e r c e nt), G e o r g ia (14 p e r ce nt), a nd New Y o r k

( 7 p e rc e nt ). W hile the n a

tion’s snap b ea n pr o du c tion d e c lin e d b y 8 p e r c e nt o v e r this four

- y e a r

period (and Florida’s production declined by 27 percent), the four States’ combined 80 percent

share of national production remained unchanged.

1 Nati o n al A g ri c u l t u ral Sta t i s t i c s Ser v ice ( N A S S) c h a p ter IV s tati s ti c s o f v e g eta b l e s a n d mel o n s

, h ttp:/ / ww w

. n a ss

. u s d a. g ov / P u b licati o n s / A g _S tati s t ics / 2011 / C h a p ter 04

. pd f3

T a ble 2 . Fr e sh snap b ea n pro d u c tion in F lorid a

, C a lifo r nia, Ge o r g ia, N e w

Yo r k, a nd n a tion a l l y

, 2008

- 2011

Source: National Agricultural Statistics Service, Vegetables and Melons Statistics

T ra de d a ta sole l y f

or f r e s h P. v ulgaris a re not a v a il a ble. This sp ec ies of

b e a n is g roup e d with other Phas e olus sp e c ies a s w e ll a s with Vigna spe c ies,

w hich in c lu d e c owp e a s ( a lso known a s bl ac k

- e y e d p e a s) a nd mung b e a n s

. F or

t h e 11

- y ea r period, 2002

- 2012

, U.S. annu a l imports of f r e sh or c hilled b e a ns

in c luded w ithin t h is a g g reg a te tr a de c a t e g o r y a v e ra g e d 41,477 MT a nd U.S.

e x ports a v e ra g e d 27,736 MT. 2 Thus, a nnu a l n e t imports of f r e sh or c hilled b e a ns,

in c ludi n g P. v ulgaris

, a v e rag e d a b o ut 13,740 MT ov e r t he 10 y ea rs.



### P otential Im p a c t on S mall E n ti t ies

As p a rt of the r u l e maki n g pr o ce ss, AP H I S e v a lu a tes w h e ther re g ulations a re lik e l y to

h a ve si g n i fi c a nt e c onomic imp ac t on a subst a nti a l number of sm a ll e ntiti e s. F r e sh b ea n

p r odu c tion is c lassifi e d within the N o r th Ame r i c a n I ndust r y Classifi ca ti o n S y stem und e r Ot h e r

Ve g e table ( e x ce pt P otato) a nd Melon F a rmi n g (N A I CS 11 1 219 )

. T h e Small B usiness

2 U.S. Censu s Bureau, as reported by Global Trade Information Services, Inc., http://www.gtis.com/GTA.

H armonized Tariff Schedule subheading 070820, Beans ( Vigna spp

., Phaseolus spp .), fresh or chilled.4

Administr a tion c lassifi e s a busin e ss in this indust r y a s small if its a nnu a l re ce ipts a r e not mo r e

than $750,000

. 3 The lat e s t data on the numb e r of f a rms that p r odu c e s n a p b ea ns a r e found in

the 2007 C e nsus of Ag r icul t u re

. I n 2007, the a v e ra g e ma r

k e t v a lue o f snap b e a ns sold b y

f a rms w a s a bout $25,400. 4 W e c on c lude th a t most if not a ll f r e sh snap b ea n f

a rms a re s mall

e ntiti e s

.

I n 2007, t h e re w e r e 17, 3 00 snap b ea n f a rms, of w hich 90 p e rc e nt (15,654) h a rv e sted

b ea ns for the f

r e sh m a rke t

. 5 T a

ble 3 sho w s that on e

- third of f a rms that h a r v e sted snap b e a ns

for the f r e sh m a rk e t w e re lo c a ted in six S tat e s: No r th C a rolin a , P e nn s y

lvan i a

, N e w Y o r k,

K e ntuc k y , Ohio, a nd Mi c higan. N o tab l y , the th r e e Stat e s s h own in t a ble 2 a s ha v i n g the

l a r g e st lev e ls of f

r e sh snap b ea n pr o d u c tion, F lorid a , Califo r nia, G e o r g ia, a re not list e d in t a ble

3; their snap b ea n f

a rms in 2007 numbe r e d 370, 370, a nd 358, r e sp e c tiv e l y

. T h e d a ta indi c a te

that snap b ea n p r odu c tion in th e se thr e e Stat e s tak e s pl ac e on f a r ms th a t ar e large in

com p a rison to the n a tion a l a v e rag e

.

3 S m all Bu s i n e s s A d m

i n i s trati o n

, T a b le o f S m

a l l B u s i n e s s Si z e s ta n d a rd s

, h ttp:/ / ww w

. s b a. g ov / s it e s /de f

a u lt / f il e s / C u rre n t_ S ize

_ St a n d a r d s

_ T a b le. pd f

4 200 7 U.S C e n s u s o f A g ri c u l t u re a n d N A SS Stat i s tics o f V e g eta b les a n d

Melo n s

h ttp:/ / ww w

. n a ss

. u s d a. g ov / P u b licati o n s / A g _S tati s t ics / 2011 / C h a p ter 04

. pd f

5 200 7 C e n s u s o f A g ri c u l t u re

– State Data, T a b le 3 0

. h ttp:/ / ww w

. a g c e n s u s

. u s d a. g o v / P u b lic a tio n s /2 007 /F u l l_ R e po rt/ u s v 1

. pd f5

T a ble 3. Stat e s with the l a r g e st n umber o f snap b e a n fa rms w h e re t h e b ea ns

w e re h a rv e sted for the f

r e sh m a rk e t, 2007

Source:

http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_2_US_State_Level/

This final rule is unlik e l y to ha v e a s i g nifi c a nt e c onomic imp ac t on sm a ll or l a rge

U.S f re sh b e a n pr o du c e r s

. W hile m ost U.S f r e sh snap b ea n f

a rmers’ a nn u a l

r e ce ipts a re w e ll b e low the sm a ll

- e nti t y s t a nd a rd, the q u a nti t y of P

. v ulgaris

e x p ec ted to be import e d f r om J o r d a n will be e quival e nt to l e ss th a n one

- tenth of

one p e r c e nt o f U .S f

r e sh s n a p b ea n pr o du c tio n . The AP H I S Administr a tor h a s

det e rmin e d t h a t this a c tion will not have a s i g nifi c a nt e c onomic imp ac t on a

substantial number of sm a ll e ntiti e s.