United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

August 2010

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-2008-0060

RIN 0579-AD13

Hass Avocado from Mexico; Importation into 

the Commonwealth of Puerto Rico and Other 

Changes

Policy & Program Development

Policy Analysis & Development
i

Summary

This rule will allow importation of Hass avocados from Mexico into Puerto Rico in 

accordance with phytosanitary measures listed in 7 CFR 319.56-4(b) and 319.56-30. Puerto 

Rico has a relatively small avocado industry, importing most of its supply from the Dominican 

Republic. In 2007, 737 Puerto Rican farms harvested avocados, a significant decrease from the 

1,217 farms reported in 2002, and suggesting an increasing reliance on imports. Most if not all

of these farms are small. Most avocados grown in Puerto Rico, as in the rest of the Caribbean 

and in Florida, are not Hass variety but larger, smooth-skinned varieties. 

We expect this rule to primarily result in increased import competition. Any impacts for 

Puerto Rico’s small entities will depend in part upon the extent to which Hass avocados imported 

from Mexico substitute for the larger, smooth-skinned varieties produced domestically. 

Avocado imports from Mexico will directly compete with Hass avocados that may be shipped

from California. 

Other amendments included in this rule provide for Mexico’s NPPO to use an approved 

designee to inspect avocados for export, and when seed pests are detected, for suspension of

avocado imports from specific orchards or packinghouses rather than from the entire 

municipality where the affected orchards or packinghouses are located. These changes will 

benefit U.S. entities generally by facilitating the inspection process in Mexico and minimizing 

import disruptions and reductions due to pest detections. 

Under these circumstances, the Administrator of the Animal and Plant Health Inspection 

Service has determined that this action will not have a significant economic impact on a 

substantial number of small entities.
1

Introduction 

Hass avocados from Mexico are allowed to be imported into the 50 United States, but not 

into Puerto Rico or U.S. Territories. This rule will allow their importation into Puerto Rico in 

accordance with phytosanitary measures listed in 7 CFR 319.56-4(b) and 319.56-30. In addition, 

this rule will provide for Mexico’s National Plant Protection Organization (NPPO) to use an

approved designee to inspect avocados for export, and when seed pests are detected, for 

suspension of avocado imports from specific orchards or packinghouses rather than from the

entire municipality where the affected orchards or packinghouses are located.

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 604 of the Act requires an agency to prepare a final regulatory flexibility 

analysis (FRFA) that describes the expected impact of the rule on small entities. In place of the 

FRFA, the head of an agency may certify that a rule will not have a significant economic impact 

on a substantial number of small entities. This analysis provides the factual basis for 

certification of this rule. No significant issues were raised in public comments on the initial 

regulatory flexibility analysis that was prepared for the proposed rule. 

Puerto Rico Avocado Production and Trade

Avocados are not a major crop in Puerto Rico. Annual production for 2006 and 2007, the 

most recent years for which production data are available, averaged about 1,800 metric tons 

(MT) (table 1). Most avocados grown in Puerto Rico, as in the rest of the Caribbean and in 

Florida, are not Hass variety but larger, smooth-skinned varieties.1 

 

1

http://www.gotopuertorico.com/pdf/saveur-dec-07.pdf
The only foreign country from which Puerto Rico imports avocados and to which it 

exports avocados is reportedly the Dominican Republic. Quantities imported by Puerto Rico, 

2006-2009, and quantities exported by Puerto Rico, 2007-2009, are shown in table 1. Although 

2007 is the only year for which we have both production and complete trade data, it is apparent 

that Puerto Rico’s total supply of avocados is composed largely of imports. Information is not 

available on quantities of avocados shipped between the Puerto Rico and the U.S. mainland, 

which would affect Puerto Rico’s supply. 

Table 1. Production, import, and export of avocados by Puerto Rico, metric tons

Year Production Imports Exports Net Imports

2006 1,721 2,937 NA NA

2007 1,881 3,498 30 3,468

2008 NA 3,021 27 2,994

2009 NA 2,478 11 2,467

Source: Global Trade Atlas, GTIS, Inc.

Note: All of Puerto Rico’s foreign trade of avocados (imports and exports) for the years shown was with the 

Dominican Republic. This table does not include possible avocado shipments to or from the U.S. mainland that 

may have taken place.

Potential Impact on Small Entities

Farms producing avocados are classified within the North American Industry 

Classification System under Other non-citrus fruit farming (NAICS 111339).2 For this industry

classification, a business is considered to be a small entity if its annual receipts are not more than 

 

2

 http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf
$750,000.3

 The average market value of crops sold by farms within the other non-citrus fruit 

farming classification in 2007 was approximately $111,000.

4

 We infer that the majority of farms 

producing avocados are small entities, including those in Puerto Rico. The 2007 Census of 

Agriculture reported that 737 farms in Puerto Rico harvested avocados, a significant decrease 

from the 1,217 farms reported in 2002. The decline in the number of farms that produce 

avocados suggests an increasing reliance on imports.

Other industries in Puerto Rico that may be affected by this rule and their small-entity 

standards are Fresh fruit and vegetable wholesalers (NAICS 4224280), not more than 500 

employees; wholesalers and other grocery stores (NAICS 445110), not more than $27 million in 

annual receipts; warehouse clubs and superstores (NAICS 452910), not more than $27 million in 

annual receipts; and fruit and vegetable markets (NAICS 445230), not more than $7 million in 

annual receipts.5 Most of the entities that comprise these industries in the 50 States are small, 

and we assume that the same is true in Puerto Rico.

While most Puerto Rican entities that may be affected by this rule are small, the impacts

will not be significant. Given that most of Puerto Rico’s supply is imported, we expect that the 

largest impact will be in terms of increased import competition. Any impacts for Puerto Rico’s 

small entities will depend in part upon the extent to which Hass avocados imported from Mexico 

substitute for the larger, smooth-skinned varieties that are produced domestically. Avocado

imports from Mexico will directly compete with Hass avocados that may be shipped from 

 

3 U.S. Small Business Administration, Table of Small Business Size Standards. 

http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf

4

2007 Census of Agriculture, Table 46. Selected Characteristics of Farms by North American Industry 

Classification System: 2007, 

http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_1_US/st99_1_046_046.pdf

5 U.S. Small Business Administration, Table of Small Business Size Standards. 

http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf
California. The quantity of avocados that will be imported from Mexico into Puerto Rico is not 

known. 

The other changes included in this rule, namely, the provisions for Mexico’s NPPO to use 

an approved designee to inspect avocados for export, and when seed pests are detected, for

suspension of avocado imports from specific orchards or packinghouses rather than from the 

entire municipality where the affected orchards or packinghouses are located, will benefit U.S. 

entities generally by facilitating the inspection process in Mexico and minimizing import 

disruptions and reductions due to pest detections. 

Under these circumstances, the Administrator of the Animal and Plant Health Inspection 

Service has determined that this action will not have a significant economic impact on a 

substantial number of small entities.
References

Census of Agriculture, 2007, 

http://www.agcensus.usda.gov/Publications/2007/Full_Report/index.asp

Global Trade Atlas, http://www.gtis.com/gta/default.cfm

U.S. Small Business Administration. U.S. Small Business Administration: Table of Small 

Business Size Standards Match to North American Industry Classification System 

http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf