[Federal Register Volume 60, Number 61 (Thursday, March 30, 1995)]
[Notices]
[Pages 16487-16498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7851]



=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service


Proposed Policy on Giant Panda Permits

AGENCY: Fish and Wildlife Service, Interior.

ACTION: Notice of proposed policy for issuance of permits for giant 
panda imports; request for comments.

-----------------------------------------------------------------------

SUMMARY: The U.S. Fish and Wildlife Service (Service) announces a 
proposed policy for issuance of permits for the import of giant pandas 
under the Convention on International Trade in Endangered Species 
(CITES) and the U.S. Endangered Species Act (Act). Current policy 
regarding giant panda imports would be superseded by this policy, if 
adopted. Specifically, no import permits would typically be issued for 
animals intentionally removed from the wild. All imports would have to 
be part of a coordinated international panda conservation effort, and 
activities would need to benefit panda conservation by supplementing, 
and not interfering with, China's breeding and research programs. Any 
net profits raised as a result of a panda loan would need to primarily 
fund conservation projects, educational programs, and/or breeding 
efforts in China. The Service proposes two alternatives concerning 
exhibition. One alternative would allow for import of pandas for short-
term exhibition loans only as an ancillary component of a captive-
breeding and/or scientific research program, when the display would not 
interfere with the captive-breeding or research activities. In the 
other alternative, the Service proposes to retain short-term exhibition 
loans under certain limited circumstances. The basis for findings 
required by the CITES on ``primarily commercial purposes'' and the Act 
on ``enhancement of propagation or survival of the species'' are 
outlined in this proposed policy. The suspension of the review and 
processing of permit applications to import live giant pandas continues 
until a decision is made on this proposed policy.

DATES: The Service will consider comments received by May 30, 1995.

ADDRESSES: Comments may be submitted to the Office of Management 
Authority, U.S. Fish and Wildlife Service, 4401 N. Fairfax Drive, Room 
420(c), Arlington, Virginia 22203. Materials received will be available 
for public inspection by appointment from 7:45 a.m. to 4:15 p.m., 
Monday through Friday, at the Office of Management Authority, Room 434.

FOR FURTHER INFORMATION CONTACT: Management Authority: Kenneth B. 
Stansell, Office of Management Authority, at the above address, 
telephone (703) 358-2093; fax number (703) 358-2280.
    Scientific Authority: Dr. Charles W. Dane, Office of Scientific 
Authority, U.S. Fish and Wildlife Service, telephone (703) 358-1708; 
fax number (703) 358-2276.

SUPPLEMENTARY INFORMATION:

Background

    The survival and ultimately the increase in the population of the 
giant panda (Ailuropoda melanoleuca) in its natural habitat is the 
strong desire of the United States, the People's Republic of China 
(China), and the international conservation community. As such, the 
panda is subject to strict protection by its listing as an endangered 
species under the Act and its inclusion in Appendix I of CITES.
    The Service is responsible for regulating panda loans in the United 
States by deciding whether to grant import, export, and re-export 
permits required by the Act and CITES, and interstate and foreign 
commerce permits under the Act. In making these decisions the Service, 
under the Act, must determine whether the proposed activities are not 
likely to jeopardize the continued existence of the giant panda and 
would enhance its existence in the wild, and under CITES, would be for 
purposes that are not detrimental to the survival of the species and 
that are not primarily commercial.
[[Page 16488]]

    In the late 1980's the proposals for short-term exhibition loans of 
giant pandas became an increasingly controversial issue. During one 
period in 1988, the Service received reports that as many as 30 
institutions may have been negotiating, or planning to negotiate, with 
various entities in China to arrange panda loans, potentially posing 
additional threats to the wild and captive populations of pandas. As a 
result the Service, through the public review process, published a 
policy on March 14, 1991 (56 FR 10809), for the issuance of import 
permits for short-term exhibition loans.
    In 1992, after the Service had issued a permit to the Columbus Zoo 
to import a pair of giant pandas for a short-term exhibition loan, the 
CITES Secretariat requested the Service to reevaluate its policy on 
panda imports. The Service published a notice in the Federal Register 
on June 29, 1992 (57 FR 28825), requesting public comment on existing 
policy. Three written comments were received. The International Union 
of Directors of Zoological Gardens suggested that an international 
management program be developed, especially for the captive population, 
which should include: (1) The development of a comprehensive, accurate 
inventory of captive pandas; and (2) a carefully designed breeding 
program, engaging as many founders and contributors to the gene pool as 
possible. Although accepting that there may be pandas incapable of 
breeding that could be used for exhibition, they recommended a complete 
ban on exhibit loans until a panda management plan is in place.
    The World Conservation Union (IUCN) stated there should be a 
moratorium on short-term non-breeding loans of pandas until there is 
sufficient evidence that such loans would contribute to a long-term 
conservation strategy in captivity and in the wild. They believed there 
is need for a strategy defining priority conservation activities for 
the species.
    The New York Zoological Society viewed short-term exhibition loans 
as money-making commercial ventures that should not be considered as 
``not for commercial purposes'', stating that any policy should meet 
the mandatory standards that the American Zoo and Aquarium Association 
(AZA) has proposed. In their view, poaching continues as a major 
problem, yet little is being done to stop it. They maintained there 
should be a complete moratorium on loans until: (1) There is an 
adequate and complete register and studbook of captive pandas; (2) a 
complete series of priorities and projects are agreed to by 
conservation organizations and China; and (3) agreements can be 
developed with IUCN to meet international conservation concerns, 
including increased efforts to stop poaching and preserve habitat.
    Verbal comments were made by the World Wildlife Fund (WWF) within 
the comment period, expressing concern about commercial aspects of 
exhibition loans and the distinction that had been made by the Service 
in this regard, and that income to the parent city of a zoo should also 
be considered. They were concerned that exhibition loans could reduce 
breeding and induce taking from the wild. They thought the Service 
should provide a clear indication of how it will examine the 
educational aspect of any exhibits.
    Before evaluation of the existing policy on short-term exhibition 
loans was completed, the Service received an application from the 
Zoological Society of San Diego (ZSSD) to import a pair of giant pandas 
for a long-term, captive-breeding loan. On April 20, 1993, the AZA 
announced the development of a Giant Panda Conservation Action Plan, 
which has since been formalized. The plan outlines a captive-breeding 
program with support from 29 zoological institutions in North America. 
In addition, in July 1993 China's Ministry of Construction (MOC) 
published the second giant panda studbook, listing all pandas currently 
in captivity.
    With the possibility of receiving an increasing number of import 
permit applications for giant pandas for public exhibition, scientific 
research, and/or captive breeding purposes, the Service felt that a re-
examination of the long-range implications of panda imports was 
necessary to ensure that such imports best serve the conservation needs 
of the species. Thus, on December 20, 1993, the Service announced in a 
news release the temporary suspension of the processing of any new 
permit applications for the import of live giant pandas during a 
reassessment of the current policy. On May 4, 1994, the Service 
requested public comments and announced a working public meeting to 
assist the Service in formulating the draft revised policy (59 FR 
23077). The suspension of review and processing of any new live giant 
panda import permits remains in effect.
    Public meetings were held by the Service on May 26 and August 23, 
1994. For its review, the Service sought information on: Giant panda 
status and population trends; current information on habitat 
availability and continuing loss; the status of current breeding 
efforts; the need to augment breeding efforts outside of China; whether 
there is adequate genetic diversity within the captive population to 
maintain sufficient heterozygosity in future generations; whether there 
is a need for additional genetic material from the wild; the status of 
reintroduction; and the need for research priorities. The Service also 
sought information on the status of all existing or proposed 
conservation programs and management plans for the giant panda. 
Comments were sought on the current panda loan policy and on specific 
elements of the findings necessary for permit issuance, including 
``primarily commercial purposes'' and ``enhancement''.
    As a result of the public comment period in 1994, written 
information and comments were received from the AZA, Busch Gardens, the 
Humane Society of the United States (HSUS), WWF, and the ZSSD. The AZA 
commented that: (1) All importers of giant pandas must be required to 
participate in the giant panda studbook; (2) most of the funds 
contributed to China must be used for giant panda field conservation 
projects; (3) there must be a project selection and monitoring system 
established in China and overseen in North America for the use of funds 
generated by panda loans; (4) the permittee must show that the 
importation will not detract from the current panda captive-breeding 
program in China; (5) genetic and demographic criteria should be used 
to determine selection of pandas to be imported; (6) there should be no 
lower age limit for animals to be imported, and pre-reproductive 
animals should be allowed if the permittee can demonstrate their value 
within a holistic panda conservation program; (7) loans should be 
longer than 3 years; (8) animals to be imported must be individually 
identified; (9) importing facilities must follow recommended minimum 
housing guidelines, and facilities should be approved by the Chinese; 
(10) the permittee must show that the importation is part of the AZA 
Giant Panda Conservation Action Plan, or a similar plan; (11) all 
permittees must support research aimed at resolving husbandry and 
management problems of giant pandas and at increasing reproductive 
success; (12) import must be for a scientific purpose or survival of 
the species and not likely to jeopardize the continued existence of the 
species; (13) no animals are to be used in animal acts while in the 
United States; (14) there must be an education component; and (15) part 
of the program must be to assist the Chinese in technology transfer and 
training and collaborative efforts in [[Page 16489]] panda husbandry, 
management, and health care.
    Busch Gardens commented that: (1) The Service should lift its 
moratorium on the importation of giant pandas and establish a new 
policy promptly; (2) since the current policy establishes guidelines 
for only short-term exhibition loans, the new policy should set 
specific guidelines for long-term captive-breeding loans; (3) the new 
policy should recognize that long-term breeding loans sponsored by the 
AZA under its conservation plan are inherently non-commercial and, 
therefore, meet the CITES requirement of being ``not for primarily 
commercial purposes'', and ``for-profit'' institutions that participate 
in the AZA program should be treated in the same way as ``not-for-
profits''; (4) accounting or reporting obligations should not be 
imposed on the importer as a result of a long-term breeding loan as 
they are unnecessary, impracticable, and unprecedented; and (5) neither 
CITES nor the Act requires an ``in fact'' finding by the Service that a 
proposed activity will enhance propagation or survival of the panda, 
and participants in the AZA plan should automatically meet the 
enhancement standard of the Act.
    The HSUS indicated that: (1) The previous exhibition of pandas in 
zoos in the United States has not resulted in the improvement of the 
status of pandas in captivity or in the wild, and experience has shown 
that large populations of animals in captivity are not an effective 
conservation tool; (2) they oppose the removal of an endangered animal 
from the wild for confinement and breeding in zoos unless preservation 
of the species' ecosystem is assured; (3) it would be desirable to 
duplicate the experience in Chinese breeding centers of maintaining a 
number of pandas clustered at one location for breeding; (4) the import 
of pandas to zoos will always serve a commercial purpose, and there has 
been little control or guarantee of what happens to funds going to 
China for panda conservation; and (5) funds, technical assistance, and 
other efforts should be directed toward protecting habitat and 
reintroductions. The WWF commented that: (1) Long-term breeding and 
research loans must be part of an integrated, international program 
designed to complement conservation efforts for the wild panda 
population; (2) research loans must be for research that is of high 
priority, is best conducted outside China, and will produce results 
that will contribute to the pool of knowledge about giant pandas; (3) 
standards for commercial vs. not-for-profit institutions need to be 
clarified--if import of a panda by a city-owned institution can result 
in the benefit to the local economy in the same manner that for-profit 
institutions operate to generate a profit, all institutions should be 
held to the same stringent standards; (4) the standards for ``primarily 
commercial'' need to be defined to consider the motivation for a giant 
panda loan; (5) the requirements on accounting and allowable expenses 
need to be strengthened--the Service should consider setting a ceiling 
on the associated expense that an exhibitor can deduct from revenues 
generated by the loan; (6) it should be clarified that education of the 
American public is not a criterion in making permit decisions, and 
education in China related to in-situ panda conservation should be 
considered as a component of an integrated conservation program; (7) 
better documentation should be required on the specific conservation 
projects in China that are to receive funding from an exhibitor, and 
China's approved and complete National Conservation Project Plan for 
the Giant Panda and its Habitat (National Plan) for pandas should be 
used as a guide; and (8) the Service must monitor performance of 
exhibitors on an annual basis to ensure they are complying with the 
provisions of the permit.
    The ZSSD commented that: (1) There is a need to clarify existing 
regulations and guidelines; (2) there needs to be a framework that 
includes agreement on the role for captive breeding, coordinated and 
effective research with agreed-upon, but flexible, research objectives, 
effective habitat preservation and restoration with emphasis on 
management of human conflicts, sufficient funding to accomplish these 
tasks, with agreed-upon monitoring and sufficient accountability for 
revenues and expenditures, and agreement on the role of display; and 
(3) they feel strongly that captive breeding is central. They suggested 
an approach to the policy that includes a framework agreement between 
AZA and the Chinese government that would identify priority 
conservation projects and research priorities with integrated 
participation by U.S. institutions. Permits could be issued to 
institutions based on this agreement, and a monitoring and 
implementation process could be established involving key parties, such 
as the AZA, the permittee, the Service, and the WWF.
    The Service considered these comments and comments given at the two 
public meetings, plus the experience it has gained since 1991 in 
applying the current policy, to draft a new proposed policy. The 
following summarizes information the Service received and gives a brief 
description of elements in this proposed policy.

Population Status

    Precise data on the size of the wild population of giant pandas are 
not available. The most recent survey, performed from 1985 to 1988, 
concluded there were between 872 and 1,352 pandas in the wild. The most 
common current estimate is that there are fewer than 1,000 giant pandas 
left in the wild and that the population is continuing to decline. In 
less than 15 years, from 1975 to 1989, the total area of panda habitat 
declined by 53 percent. This decline was primarily due to logging, 
grazing, and conversion of forest habitat to agriculture and other 
uses, resulting in the fragmentation of habitat into small islands. The 
1985-88 survey found the wild panda population to be fragmented into 24 
isolated groups separated by mountain ranges, rivers, roads, forest 
clearings, and human settlements. Some of these groups contain fewer 
than 10 pandas, making them vulnerable demographically and genetically. 
Without genetic exchange among these populations, the persistence of 
such small islands of pandas over time is questionable. In addition, 
poaching continues to take its toll, despite the imposition of harsh 
penalties, including execution.

Status of Captive Breeding in China and the Need for Breeding Efforts 
Outside of China

    The continued decline of the wild population of giant pandas and 
the increasing fragmentation of its habitat make it increasingly 
important to establish a self-sustaining captive population. The 
existence of a robust captive population could provide insurance 
against increasing threats to the wild population. The current captive 
population represents about 10 percent of the total panda population, 
captive and wild. As of June 1993, there were 113 giant pandas in 
captivity in 35 institutions--98 animals were in institutions in China 
and 15 pandas were in 8 institutions located outside of China. Three 
institutions had 14 to 21 pandas and 4 had 4 to 6 animals. The 
remaining 28 institutions had 1 or 2 animals. The Chinese recognize 
that these captive pandas need to be moved for better breeding 
opportunities and to ensure that all mature individuals participate in 
breeding. Of the 15 pandas currently held in 8 institutions outside 
China, 5 institutions hold only 1 panda. These data demonstrate the 
great need to coordinate the movement of captive-held pandas 
internationally.
[[Page 16490]]

    The captive-breeding program in China is not currently self-
sustaining. Between 1936 and 1988, 345 pandas held in captivity 
produced 67 litters of 106 cubs, with only 32 surviving more than a 
year. In recent years, improvement in management and joint efforts 
within China have enhanced breeding and survival rates and reduced the 
infant mortality rate of the captive population. However, a review of 
the International Studbook of the Giant Panda suggests that the current 
number of founders that have contributed to the captive population is 
inadequate. According to the studbook, the current captive population 
is descended from 30 founders. However, recent research suggests that 
fewer than 30 founders may exist because the paternity of some of the 
captive-born pandas is uncertain. The current captive population 
includes 57 wild-caught pandas that have not reproduced, but only 31 of 
these are currently of reproductive age. If these pandas could be 
encouraged to breed before their deaths, the captive population might 
not need additional genetic material from the wild population for 
several generations. If immediate action is not taken to enhance 
captive propagation efforts, additional genetic material might have to 
be taken from the wild to ensure sufficient genetic diversity in the 
captive population.

Reintroduction

    In view of the information on the status of the panda in the wild 
and in captivity, the Service recognizes that reintroductions cannot 
occur until a self-sustaining population of captive-born animals is 
achieved and sufficient areas of panda habitat are available and 
secure. The reintroduction of giant pandas is a long-term goal that 
needs to be incorporated into coordinated international conservation 
efforts. Protocols for reintroduction must be developed so that they 
are available when opportunities for reintroduction arise. As used in 
this notice, a coordinated international panda conservation effort 
means an organized plan through which all panda imports support high 
priority projects in China's National Plan and are coordinated with 
China's captive-breeding plan and the AZA Species Survival Plan (SSP) 
for the panda or other applicable multi-national breeding plans.

Research Priorities

    There needs to be a coordinated global effort to set priorities for 
panda research. China's National Plan (see following section) provides 
the following research priorities: (1) habitat improvement; (2) 
captive- breeding; (3) ecology, population status, and monitoring; (4) 
rearing and nutrition; (5) prevention of illness; and (6) 
reintroduction of captive pandas to the wild. The ``Giant Panda 
Breeding Plan'' developed in China (see following section) lists the 
following areas that need basic research: (1) artificial insemination 
biology and techniques; (2) breeding behavior; (3) disease prevention; 
(4) reproductive physiology; (5) diet; (6) mating ability; (7) 
reproductive longevity; and (8) fertility. Because of the precarious 
level of the panda population, it is important that research findings 
are shared quickly and that information and methodologies are 
transferred to China for use in the field and in the captive-breeding 
program.

Giant Panda Conservation Plans

    In the past decade, there appear to have been advances in panda 
conservation as a result of international cooperation with the Chinese 
ministries. The WWF worked closely with the Ministry of Forestry (MOF) 
to develop a panda conservation plan, which was submitted to the 
Chinese government in 1989. China's National Plan evolved from this 
plan, and in 1993 it was approved by China's State Council, with the 
subsequent development of a priority list of the projects included in 
the plan. The National Plan proposes establishing 14 new panda 
reserves, improving 13 existing giant panda nature reserves, 
constructing 18 panda migration corridors, and setting up 32 habitat 
management stations. It would cover most of the currently occupied 
panda habitat, protecting 95 percent of pandas in the wild. With the 
adoption of the plan, the Chinese government made a major commitment to 
the conservation of pandas and the plan by appropriating $13 million 
for its implementation. However, the total required for completion is 
estimated at $77 million, leaving more than $64 million that must come 
from outside sources over the next 10 years.
    To carry out the fund-raising activities effectively and to ensure 
that the funds raised would be used entirely for the conservation 
projects, China issued guidelines, ``Utilization and Management of 
Funds Generated for China's National Conservation Project for the Giant 
Panda and Its Habitat,'' which have also been approved by China's State 
Council. The guidelines indicate that the MOF is responsible for 
coordinating and organizing the raising of funds under the National 
Plan and any funds generated must be submitted to the China Protecting 
Giant Panda Project Office (Project Office), which will be responsible 
for assuring that specific funds will be used in specific areas. After 
deductions for some overhead costs, funds will be used entirely for 
projects in the National Plan, allocated on a priority basis and the 
Project Office is responsible for announcing the allocation and 
expenditure of funds generated for the National Plan.
    Advances have been made in the captive-breeding efforts as well. In 
1993, the second international studbook of giant pandas was published, 
listing all births, deaths, capture locations, and other valuable data. 
In September 1993 at the International Giant Panda Conference in 
Chengdu a document entitled, ``Giant Panda Captive Breeding Plan'' was 
presented. It references the Giant Panda Breeding Technical Committee, 
which coordinates captive-breeding. Although the Service does not know 
whether this document will become official, it is a clear indication of 
the increased cooperation between Chinese zoos and MOF panda-breeding 
facilities.
    Recent events suggest that China is interested in working with 
entities outside of China in an integrated conservation effort that 
includes conservation in the wild and captive propagation. On January 
14, 1994, an agreement was signed between AZA and Chinese officials, in 
which the Chinese support the long-term giant panda captive-breeding 
cooperative plan in North America as presented by AZA. The Chinese also 
indicated that giant pandas removed from the wild before March 1993 and 
captive-born specimens that do not detract from the breeding efforts in 
China would be made available for the North American captive 
population. As part of this agreement, AZA is developing procedures for 
verifying expenditures within China and for monitoring the progress of 
conservation projects. Furthermore, China has already agreed to allow 
AZA personnel to visit China to monitor projects.
    The Giant Panda Conservation Action Plan developed by AZA is 
intended to supplement and support China's National Plan. It calls for 
14 priority actions to be implemented by signatories in full 
collaboration with Chinese colleagues and other conservation 
organizations. One of the priority actions is to establish a giant 
panda SSP. The goals of the SSP would include preservation of the 
species' genetic diversity; research contributing to the survival of 
both wild and captive populations; public education and professional 
training, including technology transfer; and direct support 
[[Page 16491]] of habitat conservation, including financial support.

Purposes

    The primary function of any import of giant pandas must be to 
enhance the ultimate conservation of the species in the wild. This will 
require a variety of activities and actions in China, including habitat 
protection, habitat restoration, creation of corridors linking isolated 
populations, elimination of poaching, development of compatible 
resource uses in giant panda habitat, educational programs in China 
that stress the importance of preserving giant pandas and their 
habitat, development of a self-sustaining captive population, and, 
eventually, reintroduction of captive-bred animals. This proposed 
policy would allow for the issuance of permits to import pandas for 
captive-breeding, scientific research, and/or exhibition purposes, when 
the activity is part of a coordinated international panda conservation 
effort. It proposes two alternatives for exhibition. In alternative 1, 
exhibition would only be allowed as an ancillary component to captive-
breeding or scientific research, and such exhibition would be 
contingent on the absence of conflict between public display and the 
primary research or captive-breeding activities. Alternative 2 would 
allow the import of pre-breeding age male pandas for short-term 
exhibition under certain circumstances. The proposed policy emphasizes 
that, in addition to the specific purpose(s) of a loan, the permittee 
must typically fund conservation projects and/or captive-breeding in 
China, as well as the transfer of scientific and captive-breeding 
methodologies or conservation education programs to China. Since there 
are a number of pandas owned by entities outside of China, this 
proposed policy includes references not only to China but also to 
lending institutions in other countries. The proposed policy would 
continue to prohibit the use of pandas in animal acts or shows.

Wild-Taken Pandas

    In the past it has been suggested that giant pandas have been 
recovered (i.e., ``rescued'') from the wild without sufficient 
justification, and that such removals were necessary for survival of 
the species in the wild. The increased international demand for captive 
giant pandas may have provided incentives that were misdirected in some 
instances. The bamboo die-offs of the early 1980's perhaps stimulated 
misguided and unnecessary removals of pandas from the wild.
    In recent years, the Chinese government has taken a firm position 
on captures from the wild and the number of animals brought into 
captivity has declined. The August 1989 joint report of the MOF and WWF 
titled, The National Conservation Management Plan for the Giant Panda 
and its Habitat (WWF Plan), includes Guidelines for Rescue Operations 
in Section 3.8. These recommendations were apparently developed with 
the bamboo die-off of the early 1980's in mind, and they recommend, 
among other things, that: (1) No further panda emergency operations 
should be mounted until another major wave of bamboo flowering affects 
the panda range; (2) villagers should not receive any financial 
incentive to rescue pandas; (3) villagers who encounter starving pandas 
should report immediately to the local forestry officials or designated 
rangers, who must visit the site to decide whether rescue is necessary; 
and (4) rescue should only be attempted in terminal cases. It further 
states that ``some of these regulations are already accepted,'' we 
assume, by the MOF. The National Plan evolved from this 1989 plan.
    A Sichuan Forestry Department document, with a February 20, 1993, 
date, titled, ``Procedure for the Conservation and Rescue of the Giant 
Panda'' (Rescue Procedures), outlines procedures for reporting the 
occurrence of ill or injured pandas, authorities responsible for rescue 
decisions, and options to be considered in a rescue. It also refers to 
a national protocol on panda rescue, and indicates that Sichuan had 
taken actions regarding possible panda rescues following the lead of 
the State Council and the MOF. Therefore, it would appear that national 
panda rescue regulations or policy similar to those used in Sichuan 
were in effect at least by February 20, 1993.
    This policy proposes that pandas removed from the wild prior to 
December 31, 1986, would be considered for an import loan. This date 
approximately follows the peak of bamboo die-off in about 1983 by 3 
years, allowing a period during which pandas might still have been 
affected by that event. It appears the Chinese have established even 
greater restrictions on the rescue of pandas since then. Therefore, the 
Service generally would not consider any import of pandas removed from 
the wild after December 31, 1986, unless the circumstances of the 
removal clearly indicate that the removal conformed to Chinese 
regulations and was in the best interest of the individual animal and 
the species.

Age and Other Parameters of Animals Available for Loans

    No post-breeding age pandas would be considered for import. Since 
data now indicate that the reproductive age is higher than originally 
thought, the Service proposes that post-breeding pandas would be over 
20 years of age. The Service feels that the risks from transport to 
animals over this age would not be acceptable.
    For Alternative 1 in the ``Exhibition'' section, the Service 
proposes that pre-breeding age pandas will not be considered for an 
import permit, except for female pandas within an estimated 6 months of 
their first estrus. For Alternative 2, for short-term exhibition, only 
the import of pre-breeding male pandas would be considered.

Length of Loans

    The Service believes that the length of giant panda loans should be 
determined by the purpose(s) of the loan and the length of time 
necessary to accomplish the goals of the import. The Service feels that 
internationally coordinated giant panda conservation efforts could 
incorporate various types of loan arrangements requiring varying 
lengths of time.

Conservation Benefits of Specific Projects

    The Service continues to emphasize the need to relate giant panda 
imports to the enhancement of the species in the wild, especially 
through funding of in situ projects. It is expected that most imports 
would be for multiple purposes and funds would be generated.
    The Service proposes that the allocation of net profits derived by 
the applicant during a loan period that can be attributed to the loan 
should be based on ownership of the panda, and should be used for 
specific areas of conservation. If the panda is owned by China, at 
least 80 percent of net profits must be used to fund in-situ 
conservation projects in China's National Plan. Remaining funds would 
be used for panda conservation, including additional in-situ 
conservation projects, education, and/or captive-breeding efforts in 
China. If the panda is owned by an entity other than China, at least 50 
percent of the funds must be used to fund in-situ conservation projects 
in China's National Plan. Remaining funds would be used for panda 
conservation, including additional in-situ conservation projects, 
education, and/or captive-breeding efforts inside China, and/or 
captive-breeding efforts outside of China. Specific conservation 
projects [[Page 16492]] and/or activities to be funded must be high-
priority projects included in China's National Plan or otherwise 
specifically and thoroughly justified. The applicant would be required 
to provide a complete monitoring plan to track disbursement of funds 
and progress of projects. Instead of outlining exact requirements, the 
Service proposes that monitoring plans contain components that would 
clearly show that the projects to be funded will be completed. This 
should include identification of specific projects with timeframes 
given for tasks to be completed, and a plan outlining how progress 
would be documented and how some site inspection would occur. China has 
recently agreed to these components when working with several groups in 
the United States. The Service would monitor the progress by requiring 
the permittee to submit at least an annual report of funds transferred 
and status of projects funded and implemented.
    The Service also proposes that a summary of projects to be funded 
would be published in the Federal Register as part of the public review 
process when an application is received for a permit to import a giant 
panda.

Scientific Research

    The Service proposes that import applications for scientific 
research outline how the research would contribute to the conservation 
of the panda in the wild and in captivity. The proposed policy requires 
that the applicant provide a research proposal that demonstrates that 
the research is properly designed and can be accomplished with the 
available expertise and resources. The Service will not categorize or 
identify acceptable kinds of research but will retain the option of 
judging the validity and/or current need of the proposal based on 
priorities given in a coordinated international panda conservation 
effort and in China's National Plan.
    If the panda would also be on exhibition, the applicant must have a 
monitoring plan to ensure that the display does not interfere with the 
research or bias the data.
    To the extent possible, the Service would expedite permit 
applications for biological samples under certain conditions. The 
researcher needs to keep in mind that under CITES export permits are 
only valid for 6 months and import permits for 1 year. Authorization 
under the Act may be granted for 4 years, but then would need to be 
published in the Federal Register for public comment before renewal.

Captive Breeding

    The proposed policy would require permittees who import pandas for 
captive-breeding purposes to participate actively in a coordinated 
international panda conservation effort. Breeding loans need to benefit 
panda conservation by supplementing the breeding program in China to 
achieve a self-sustaining captive population. Since many of the pandas 
to be imported into the United States for breeding would have a history 
of not reproducing, it is anticipated that there will be a research 
component to the captive-breeding activities.
    If the panda would also be on public display, the applicant must 
have a monitoring plan to ensure that the display does not interfere 
with the breeding program.

Exhibition

    To date, almost all of the loans of giant pandas to the United 
States have been solely for short-term exhibition purposes and the 
generation of funds for conservation and captive-breeding activities in 
China. Funds from the loan of one captive panda from the United Kingdom 
were used to improve facilities for that animal while at Chapultepec 
Park Zoo in Mexico City.
    The Service anticipates import applications that include public 
display would contain a component to educate the public in the United 
States about the ecological roles and conservation needs of the giant 
panda, but this in and of itself would not be considered to meet the 
requirement under the Act of enhancing the survival of the giant panda 
in the wild. If the applicant proposes to develop panda conservation 
education programs that would be transferred to China, the Service 
would consider this component as possibly meeting part of the 
enhancement requirement. The Service emphasizes support for education 
in China because there appears to be a need for educational programs in 
areas near giant panda habitat and reserves to enhance panda 
conservation.
    The Service proposes two alternatives on exhibition and invites 
public comment.
    Alternative 1--Exhibition Solely as an Ancillary Component. Under 
this alternative, which would be consistent with the AZA moratorium on 
short-term panda loans, import of pandas solely for exhibition loans 
would not be allowed. Educational display would only be allowed as an 
ancillary component of a captive-breeding and/or scientific research 
program, when the display would not interfere with the captive-breeding 
or research activities. Even temporary loans of pandas to another 
institution during the non-breeding season would not be allowed, as 
this could be disruptive to behavioral interactions, endocrine 
monitoring, and research designed to maximize breeding success.
    With advances in coordinated international conservation efforts for 
the giant panda, the Service proposes that institutions in the United 
States focus their energies on activities with captive pandas that best 
ensure their recovery. The Service recognizes that the use of any of 
these animals for short-term exhibition could detract from the overall 
captive conservation efforts by stimulating institutions to use 
resources for short-term exhibition, rather than committing resources 
to needed captive breeding or research. Furthermore, the use of 
breeding age pandas for short-term exhibition loans could increase the 
stress and reduce acclimation of pandas to breeding surroundings while 
minimizing the opportunities for important research and captive-
breeding activities. Thus, in this alternative the Service proposes to 
discontinue the issuance of permits for the import of pandas for solely 
exhibition purposes (even though such exhibits might raise substantial 
funds to go back to China); every panda loan would be required to have 
intrinsic conservation benefits in its own right, in addition to 
financial contributions to China.
    Alternative 2--Short-term Exhibition. In this alternative, the 
Service would issue permits for the import of giant pandas not only for 
activities as described in alternative 1, but also solely for short-
term exhibitions under specific conditions designed to raise funds to 
be returned to China. Exhibition loans could provide significant 
funding in support of conservation projects for pandas in the wild, but 
the Service is still considering whether such loans would in any way 
have a detrimental affect on pandas in the wild, or would detract from 
captive-breeding or research efforts.
    Greater revenues for panda conservation might be likely from 
exhibition loans because of higher visitation rates for shorter periods 
of time, and because viewing opportunities might occur at facilities 
that might otherwise not be able to qualify for scientific research or 
captive-breeding purposes. Some concerns expressed in the past about 
exhibition loans, such as the lack of a studbook and the lack of 
project priorities, have been addressed, and other concerns about 
accountability and the lack of a master breeding plan are being 
addressed. Nevertheless, there [[Page 16493]] remain concerns that 
short-term loans could in some way affect breeding, stimulate take of 
additional pandas from the wild, and/or detract from efforts to support 
overall captive-breeding efforts. Such loans emphasize the purely 
financial benefits that may be gained from exhibition, rather than any 
intrinsic benefit from the loan itself.
    While there is no available evidence that the import of pandas of 
pre-breeding ages, as allowed by the previous policy, had subsequently 
had a detrimental effect on their breeding, AZA has suggested that the 
loan of only male pandas would further minimize the effects of loans on 
breeding. The Service agrees with the AZA suggestion and proposes that 
if the final policy allows any short-term exhibition loans, they would 
be limited to young, pre-reproductive age male pandas.
    With regard to the possible removal of pandas from the wild, 
projections have changed in that: (1) China in recent years has taken a 
firm position on capture of pandas from the wild, (2) the Service's 
proposed policy continues not to allow the import of any pandas that 
were removed from the wild after 1986, except in unusual yet 
justifiable circumstances, and (3) the studbook allows for a check on 
parentage of any captive-bred pandas.
    Finally, with regard to possible disruption of efforts to maximize 
the breeding potential of the captive population, the Service notes: 
(1) That the Chinese have been developing a captive-breeding plan, (2) 
the Chinese are supportive of AZA's efforts to augment captive-breeding 
efforts through research and emphasis on non-reproductive pandas, and 
(3) the zoo community has shown increasing interest in supporting long-
term captive-breeding efforts, although the expense of constructing 
suitable facilities might exclude some zoos from participating in such 
long-term loans.
    If after reviewing the comments and information received from this 
notice, the Service concludes that short-term exhibition loans would 
not be allowed, the Service would likely review this aspect of the 
panda policy again after accumulating or four or five years' experience 
and data under the new policy.

Primarily Commercial Purposes

    Giant panda loans must be for purposes that are not primarily 
commercial. This proposed policy does not reflect a significant change 
from the previous policy since the requirements of CITES have not 
changed, but there are a few additions. One of the proposed changes is 
a description of reasonable expenses that could be deducted to 
calculate net profit, and items that would not be considered reasonable 
expenses. Another is that the applicant would need to submit a 
certified statement from a reputable, independent accounting firm that 
the internal accounting system meets the requirements of Service policy 
for tracking funds.

Suitability of Facilities

    CITES and the regulations under the Act require that the evaluation 
of an application for an import permit includes consideration of 
whether the applicant is suitably equipped to house and care for the 
animals to be imported. The proposed policy continues to require the 
applicant to demonstrate it has acquired available information on giant 
panda care and facilities, and training for involved keepers, as well 
as approval by the Chinese of the quality of the facilities. Although 
these requirements would enable an evaluation of the applicant's 
initial abilities to house and care for giant pandas, the Service now 
feels that additional assurances are needed regarding the long-term 
care and health of the animals. Therefore, under this proposed policy 
applicants would be required to develop a protocol for monitoring the 
continued health and behavior of giant pandas throughout the loan 
period, or to describe an existing protocol that will be used for this 
purpose.

Transfer of Pandas to Other Entities within the United States

    Before a giant panda is transferred between facilities within the 
United States, the recipient must obtain an interstate commerce permit 
under the Act. The Service would, to the extent possible, facilitate 
the transfer of animals when it is part of a coordinated breeding 
program. The transfer of animals must also have the prior approval of 
China or the entity that owns the panda. The number of times an 
individual panda is transferred within the United States would be 
closely monitored to protect the overall health of the animal.

Response to the CITES Secretariat's Views on Giant Panda Loans

    The text of the 1991 policy is not significantly changed in the 
proposed revised policy. The requirement of permits under the Act is 
clarified as the pre-Act exemption (Section 9(b) of the Act) does not 
apply to animals to be transferred under a lease-hold agreement.

Public Comments Solicited

    The Service requests comments on this proposed policy. The final 
decision on this proposal will take into consideration the comments and 
any additional information received, and such consideration might lead 
to a final policy that differs from this proposal.

Required Determination

    This document was not subject to Office of Management and Budget 
review under Executive Order 12866. The information collection 
requirements identified in this policy as part of the permit 
application have been approved by the Office of Management and Budget 
under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and assigned 
clearance number 1018-0022.
    The Service has determined that this proposed policy is 
categorically excluded under Departmental procedures from complying 
with the National Environmental Policy Act (NEPA) (516 Departmental 
Manual, Ch. 2, Appx. 1, paragraph 1.10). An Environmental Action 
Memorandum is on file at the Service's Office of Management Authority 
in Arlington, Virginia.

Proposed Revised Policy on Giant Panda Loans

    Before any import permit will be issued, the application must be 
reviewed in terms of the applicable requirements of CITES and the Act 
by the Service's Offices of Management and Scientific Authority. 
Issuance of an import permit under CITES requires prior findings that: 
(1) The proposed import would not be for purposes detrimental to the 
survival of the species; (2) the import would not be for primarily 
commercial purposes; and (3) the permit applicant is suitably equipped 
to house and care for the animals. Issuance of a permit under the Act 
requires prior determinations that, among other things: (1) The import 
would be for scientific purposes or to enhance the propagation or 
survival of the species, in a manner consistent with the purposes and 
policies of the Act; and (2) issuance of the import permit would not be 
likely to jeopardize the continued existence of the species. These 
requirements are further implemented by application requirements and 
issuance criteria found in 50 CFR 13.12, 17.22, 23.14, and 23.15. In 
addition, Section 9(d) of the Lacey Act, with regulations at 50 CFR 14, 
Subpart J, requires that shipments of live wild mammals being shipped 
to the United States are done under humane and healthful conditions 
[[Page 16494]] such that the animals arrive alive, healthy, and 
uninjured. The policy requires the applicant to demonstrate that the 
animals will be shipped so as to satisfy this requirement.

Purposes

    The primary goal of the policy is to ensure that all imports of 
giant pandas contribute toward the survival, and ultimately the 
increase to a self-sustaining level, of panda populations in the wild. 
All imports must be part of a coordinated international panda 
conservation effort, a term used in this policy to mean an organized 
plan through which all giant panda imports support high priority 
projects in China's National Plan and are coordinated with China's 
captive-breeding plan and AZA's SSP or other applicable multi-national 
breeding plans. The Service anticipates that most import permit 
applications will be for multiple purposes. Applicants must identify 
the primary purpose for the proposed import and all other intended 
purposes. No activities for additional purposes may be undertaken 
during the course of the loan without approval from the Service.
    The ultimate objective of managing captive pandas should be for 
breeding and research purposes, and any training or use of pandas in 
animal acts would be considered as detracting from this objective. 
Therefore, use of pandas in animal acts or shows during the loan period 
would be prohibited by condition of the permit.

Wild-Taken Pandas

    The following guidelines will be used to evaluate import 
applications involving pandas removed from the wild. These time 
constraints are based on information available to the Service 
suggesting that the removal of pandas from the wild has increasingly 
come under control by the Chinese, starting prior to the WWF Plan of 
August 1989.
    In all cases, the Service will continue its policy of approving 
import permit applications only when it is sure that the loan did not, 
or will not, contribute to the removal of pandas from the wild.
    1. Pandas removed from the wild prior to December 31, 1986, will be 
considered for an import permit.
    2. The importation of pandas removed from the wild after December 
31, 1986, will not be considered, unless information describing the 
circumstances of their removal clearly indicates that the Rescue 
Procedures were followed, that the animal(s) was malnourished, ill, or 
injured to a degree that justified its removal, and that circumstances 
of the animal's recovery, of habitat conditions, of population density, 
or other reasons provided clearly precluded reintroduction of the 
animal(s).

Age and Other Parameters of Animals Available for Loans

    1. Pandas over 20 years of age will not be considered for an import 
permit because they are probably beyond breeding age, and the risks 
from the stresses of travel are not biologically acceptable.
    2. For alternative 1 in the ``Exhibition'' Section, pre-breeding 
age pandas will not be considered for an import loan. This would 
include females under 4 years of age, and males under 5 years. Even 
though it is expected that captive-breeding loans will concentrate on 
the use of pandas that have not been successfully bred in China (or 
elsewhere), there may be situations in which females within 6 months of 
their first estrus would be considered to allow a pre-breeding period 
of acclimation of a pair.
    3. In alternative 2, only pre-breeding age male pandas from the age 
of 2 to 5 will be allowed for short-term exhibition loans.
    <bullet> Only male pandas that are independent of maternal care but 
are not yet of breeding age or approaching breeding age will be allowed 
to be imported. Specifically, this include males at least 2 years of 
age at the beginning of a loan period and under 5 years at the end of a 
loan period.
    <bullet> No pre-reproductive female pandas or breeding age giant 
pandas of either sex will be considered for short-term loans, even 
during the non-breeding season.

Length of Loans

    The Service will evaluate the length of time requested for the 
proposed loan to ensure it is appropriate to the proposed activity. For 
example, if the primary purpose of the import would be for captive 
breeding and/or research, the length of the loan should be of 
sufficient duration to accomplish the stated goals. Generally it is 
anticipated that such activities may require 3 to 5 years, or perhaps a 
longer time for the maximum benefit to captive-breeding activities in 
the United States.

Conservation Benefits of Specific Projects

    All of the net profits resulting from the import are to be used for 
conservation of the giant panda and its habitat. Emphasis is on in-situ 
conservation projects as listed in China's National Plan.
    1. Whenever funding is associated with the import of giant pandas, 
the following must be satisfied:
    (a) Net profits are to be allocated as follows:
    <bullet> If the animals are owned by China, at least 80 percent of 
the funds are to be used for in-situ conservation projects for the 
giant panda and its habitat in China as listed in China's National 
Plan. The remaining funds must be used to support conservation, 
including additional in-situ projects, education and/or breeding 
efforts for the giant panda in China. In the event that profits 
generated exceed the ability of the Chinese to apply the monies to 
priority projects or captive-breeding in China at any one point in 
time, then funds may be used to support breeding efforts for the giant 
panda outside China with approval from the Service.
    <bullet> If the animals are owned by an entity other than China, at 
least 50 percent of the funds are to be used for in-situ conservation 
projects for the giant panda and its habitat in China as listed in 
China's National Plan. The remaining funds must be used for panda 
conservation, including additional in-situ conservation projects, 
education, or captive-breeding efforts in China, and/or captive-
breeding efforts outside of China as part of a coordinated 
international panda conservation effort.
    (b) Conservation projects to be funded must meet the following 
conditions:
    <bullet> They must be included in a coordinated international panda 
conservation effort, or compelling reasons must be given for funding 
other projects. Preferably, any conservation or breeding plan cited as 
including projects to be funded should be formally approved by China's 
Project Office of MOF or the appropriate entity in another country, but 
plans or programs that have not been officially approved will be 
considered.
    <bullet> They must be considered to be of high priority in the most 
recent coordinated international panda conservation effort.
    <bullet> They must be described as specifically as possible, with 
funding allocations to specific tasks given in foreign currency (e.g., 
yuan) and in U.S. dollars, and projected timeframes given for use of 
the funds to initiate and complete specific projects or activities.
    (c) The applicant must provide a plan to monitor the disbursement 
of funds for selected conservation projects or activities. The plan 
needs to be sufficiently complete so that the Service is satisfied of 
its effectiveness and that the projects to be funded will be completed. 
Such a monitoring plan [[Page 16495]] should include provisions 
equivalent to the following:
    <bullet> Before funds are transferred to the appropriate office in 
China or the lending entity, the permittee and the appropriate foreign 
entity should agree on a detailed budget, work plan, and timetable for 
project completion. Specific, measurable objectives and a schedule for 
progress reporting should be identified for each project.
    <bullet> Payments should be made in installments. Each payment 
needs to be linked to actions taken toward completion of the 
project(s).
    <bullet> Subsequent payments should be contingent on approval of 
progress reports by the permittee.
    <bullet> An independent audit should be conducted annually to 
verify disbursement of funds.
    <bullet> The permittee, its authorized representative, and the 
Service must have permission from the implementing agency to examine 
records and to make site visits to funded projects at least annually.
    2. Annual reports to the Service will be required, which should 
give an accounting and report of funds transferred and portions of the 
project completed (see section under ``Primarily Commercial Purposes'' 
for further reporting requirements). Copies of reports received by the 
applicant from the recipient of funding should be included, with 
English translations if reports are not in English.
    3. As part of the notice of receipt of a permit application 
published in the Federal Register for public comment, the Service will 
describe the specific projects the applicant is proposing to fund.

Scientific Research

    There is a great need for scientific research on the giant panda, 
both in the wild and in captivity. The research must contribute to the 
conservation of the panda and typically, when part of an import loan, 
must provide a source of funds for panda conservation in the wild, as 
described below.
    (1) The applicant must provide information to show that the 
research is bona fide, meaning research that is properly designed and 
can be accomplished with the expertise and resources available:
    <bullet> Objectives and goals must be clearly defined. Hypotheses 
and experimental designs, when applicable, intended to test them must 
be described.
    <bullet> Investigative procedures and research protocols must be 
described in detail or referenced as published in a recognized journal.
    <bullet> Estimated timeframes need to be given.
    <bullet> Research must not be duplicative unless it is a 
collaborative effort, or if repetition can be justified.
    <bullet> The results of the research would be expected to identify, 
evaluate, or resolve panda conservation problems or contribute to the 
basic knowledge of panda biology and ecology deemed important to the 
survival of the panda.
    <bullet> The results would likely be published in a scientific 
journal.
    (2) For research with live pandas, the applicant must have the 
expertise and resources to accomplish the stated objectives.
    <bullet> Enhancement may be satisfied solely through scientific 
research if it can be convincingly shown that results will be used to 
study and/or manage giant pandas in a way that would contribute to 
their conservation in the wild. It is expected that requests to import 
live pandas for scientific research will also include other, additional 
enhancement activities, such as the generation of funds for panda 
conservation in the wild.
    <bullet> Research must be recognized as a high priority activity by 
a coordinated international panda conservation effort.
    <bullet> Proposals must describe how the study may contribute to 
the conservation of the giant panda in the wild. If in situ, the 
research must be a collaborative effort with Chinese scientists. If the 
research is ex situ, the applicant must describe why it is best 
conducted outside China, and how any information gained or 
methodologies developed will be transferred for use in China, including 
estimated timeframes of transfers, training, or collaborative efforts.
    <bullet> Any physically invasive procedures to be used or any 
behavioral modifications anticipated as part of research activities 
must be described, together with a detailed plan describing how the 
applicant would respond to and minimize complications that might arise. 
Any subsequent procedural changes and/or additions must be pre-approved 
by the Service.
    <bullet> The permittee must provide an annual report summarizing 
research activities associated with the purposes of the permit, 
including a brief description of each project, a copy of protocols 
developed and methodologies used, a summary of data collected with a 
discussion of results and copies of published papers resulting from the 
research. The report should also indicate any transfer of research 
protocols or methodologies to the Chinese and their use in China, in 
the wild or in captivity.
    (3) If live pandas are going to be on exhibition at any time during 
the term of the research loan, the following must be satisfied:
    <bullet> The applicant must provide protocols outlining how the 
research and exhibition will be monitored to ensure that having the 
pandas on exhibit is not interfering with the research or biasing data. 
The applicant must also provide the name, position, and qualifications 
of the individual who will be responsible for making the decision to 
take the pandas off of exhibit if the display is interfering with the 
research.
    <bullet> The applicant must have adequate facilities to conduct the 
research and house the pandas separate and apart from the public 
exhibition areas in case it is found that exhibition interferes with 
the research.
    <bullet> The funds generated by the exhibition must be used for 
conservation projects.
    (4) For research involving biological samples, the applicant must 
have the expertise and resources to accomplish the stated objectives.
    <bullet> Salvaged specimens (i.e., those obtained from animals that 
have died of natural causes; naturally shed hair) must be obtained 
without harassing any live animals, and collection must be authorized 
by the MOF, MOC, or the Project Office.
    <bullet> The collection of samples from live captive giant pandas 
must be done by qualified personnel, preferably veterinarians, with 
appropriate training and experience in capture, restraint, and sample 
collection, so as not to result in death or injury of animals. Sampling 
must also be done in a manner that would not be disruptive to breeding 
activities. The collection and subsequent export of such samples to the 
United States must be done in cooperation with the authority 
responsible for managing the animals (e.g., MOC).
    <bullet> Any collection of biological samples from live giant 
pandas in the wild must be authorized by the MOF. Generally, only 
samples that were collected incidental to the capture of animals for 
other purposes by MOF biologists will be considered for import. 
However, the import of samples taken from animals captured for the sole 
purpose of collecting samples for import will be considered if the 
samples are to be used in research that is expected to have a 
substantial benefit to giant panda conservation. In this case, import 
permits must be obtained prior to the collection of the samples. 
Samples from live wild giant pandas may only be collected by qualified 
personnel, [[Page 16496]] preferably veterinarians, who have 
appropriate training and experience in capture, restraint, and sampling 
methodologies appropriate to giant pandas, so that sampling is unlikely 
to expose live giant pandas to risk of death or injury, or to disrupt 
mating or parental care of young.
    <bullet> The results of research conducted with imported specimens 
must be reported to the Service at least annually; a report should 
include copies of any scientific publications produced. The report must 
contain information on the number and type (e.g., blood, hair, skin 
biopsy) of samples imported, specific source/location from which each 
sample was collected (if more than one was authorized), and 
observations on the effects of sampling on the animals. The report must 
also state whether the research resulted in the development and 
transfer of research protocols or other methodologies to the Chinese 
and how these products have been/will be used in China for the 
conservation of giant pandas.
    <bullet> The Service will consider the issuance of general permits 
for the import and export of biological samples when the applicant 
provides sufficient information to show the conditions outlined in this 
policy are met and as long as complete annual reports are submitted in 
a timely manner.
    <bullet> The import or export of urine, feces, and synthetic DNA, 
when collected in a manner that does not involve the capture, 
detention, or killing of protected wildlife, does not require a permit 
from the Service. The CITES Management Authority of any exporting or 
importing country should be contacted to meet any requirements it may 
have.

Captive Breeding

    Breeding loans need to benefit panda conservation by supplementing 
the breeding program in China to achieve a self-sustaining captive 
population, and typically also to provide a source of funds for panda 
conservation in the wild. There is a need to maximize the use of pandas 
currently held in captivity that are not essential to China's breeding 
program. It is anticipated many of the animals that may be requested to 
be imported into the United States will be ones that have not 
successfully bred in China, and the policy emphasizes the need to have 
a research component to identify how these individuals may best 
contribute to the breeding component in China.
    (1) The applicant must provide sufficient information to 
demonstrate the importance and necessity of importing pandas for 
captive-breeding:
    <bullet> Enhancement may be satisfied through captive-breeding if 
it can be convincingly shown that results will be used to study and/or 
manage giant pandas in a way that has promise of contributing to panda 
conservation. It will be expected to include a research component aimed 
at increasing reproductive success if the animals involved have a 
history of being non-breeding animals. It is expected that requests to 
import live giant pandas for captive breeding will also include other, 
additional enhancement activities, such as the generation of funds for 
panda conservation in the wild.
    <bullet> If research is a component, the applicant must provide 
information to show that the research satisfies the requirements of 
this policy concerning scientific research. The research must be 
recognized as a high priority activity by a coordinated international 
panda conservation effort.
    <bullet> The proposed captive-breeding must be part of a 
coordinated international panda conservation effort designed to 
complement conservation efforts for the wild panda population, with the 
applicant actively participating in the plan.
    <bullet> The breeding loan must demonstrate how it will contribute 
to the preservation of the panda's gene pool (i.e., retention of 
maximum genetic diversity). The choice of individuals to be imported 
should be based on scientific management of the captive populations 
with genetic and demographic criteria used to determine mating pairs.
    <bullet> Proposals must describe how the study would contribute to 
the conservation of the giant panda in the wild or in captivity, and 
how any information gained or methodologies developed will be 
transferred for use in China, including estimated timeframes of 
transfers, training, or collaborative efforts.
    (2) The applicant must provide information to show that he/she has 
the expertise and resources to accomplish the stated objectives:
    <bullet> The applicant must submit a detailed breeding protocol 
that outlines when male and females will be paired for breeding, how 
females and males will be visually and physically separated and/or 
managed together, with layout of facilities and protocols for rearing 
potential young.
    <bullet> Imports of frozen sperm for use in captive breeding must 
be done in accordance with a coordinated international panda 
conservation effort.
    <bullet> Artificial insemination or any other physically invasive 
procedures must be described, and any subsequent procedural changes 
and/or additions must be pre-approved by the Service.
    <bullet> The permittee must provide at least an annual report 
summarizing breeding activities, and research activities, if pertinent, 
including a copy of protocols developed and methodologies used, a 
summary of data collected with a discussion of results, and copies of 
any published papers. The report should also indicate any transfer of 
protocols or methodologies to the Chinese and their use in China in the 
wild or in captivity.
    (3) If pandas are going to be on exhibition at any time during the 
captive-breeding loan:
    <bullet> The applicant must provide protocols outlining how the 
captive breeding, its research component, when applicable, and 
exhibition will be monitored to ensure that having the pandas on 
exhibit does not interfere with captive breeding and/or its research 
component. The applicant must also provide the name, position, and 
qualifications of the individual who will be responsible for making the 
decision to take the pandas off of exhibit if the display is 
interfering with the captive-breeding or its research.
    <bullet> The applicant must have adequate facilities to conduct the 
captive breeding and its research component, when applicable, and to 
house the pandas separate and apart from public exhibition areas, in 
case it is found that the exhibition interferes with the captive 
breeding or its research.
    <bullet> The funds generated by the exhibition must be used for 
conservation projects as previously described.
    <bullet> The applicant must consent to the movement, substitution, 
or transfer of any panda to another approved institution if, in the 
judgment and at the request of China, such action is needed to maximize 
successful captive-breeding opportunities.

Exhibition

    1. The import of giant pandas for the purpose of educational 
exhibition alone would not be sufficient to satisfy enhancement 
requirements. The Service encourages institutions importing giant 
pandas to educate the U.S. public about the ecological role and 
conservation needs of the giant panda, but will not consider this in 
reviewing applications. However, if an applicant is developing a panda 
conservation education program that would be transferable to China, or 
is developing a program specifically for use in China, particularly in 
localities near giant panda habitat and reserves, the Service will 
consider this project as part of a coordinated international 
conservation [[Page 16497]] effort in making its enhancement finding.
    <bullet> Educational programs in China should be aimed at local 
people, school children, panda researchers (field and captive), reserve 
biologists, and managers.
    <bullet> Educational activities or projects must be described in 
detail, including samples of the kinds of educational materials to be 
used, and a description of evaluation methods.
    <bullet> The messages conveyed through the educational program 
should stress historical and contemporary impacts on the status of the 
giant panda in the wild, and conservation efforts that might be 
required to halt the species' decline and degradation of its habitat.
    2. Alternative 1--Exhibition Solely as an Ancillary Component. 
Educational displays would only be allowed as an ancillary component of 
a captive-breeding and/or research program. Specifically, the import of 
pandas solely for exhibition loans of any length would not be allowed.
    3. Alternative 2--Short-term Exhibition. For purposes of this 
policy, the import of pandas for short-term exhibition loans would be 
allowed under certain conditions:
    <bullet> A panda can only be on loan for short-term exhibition for 
a maximum of 1 year.
    <bullet> During a single 1-year loan period in the United States, 
up to 3 different institutions may receive and display the pandas for 
periods of at least 3 months, unless health considerations dictate 
otherwise.
    <bullet> Each institution following the first in the sequence of 
exhibitions must have submitted complete application materials as well 
as written authorization from the exporting country's Management 
Authority and, if from China, from the Protecting Giant Panda Project 
Office.

Primarily Commercial Purposes

    With regard to the determination of whether a loan of giant pandas 
is not to be used for primarily commercial purposes, the Service will 
utilize the following policy.
    1. Resolution Conf. 5.10 of CITES provides that:
    <bullet> The nature of the transfer of specimens between the owner 
in the country of export and the recipient in the country of import may 
be commercial. It is the intended use of the specimens in the country 
of import that must not be for primarily commercial purposes, and it is 
the responsibility of the recipient country's Management Authority to 
make this determination.
    <bullet> There may be some commercial aspects of that use, but the 
non-commercial uses must predominate in order to be deemed primarily 
non-commercial.
    2. Public, non-profit institutions, organizations and agencies will 
receive consideration for panda loans. The Service's general 
regulations at 50 CFR 10.12 define ``public'' institutions as those 
that ``* * * are open to the general public and are either established, 
maintained, and operated as a government service, or are privately 
endowed and organized but not operated for profit.'' Although 
commercial (profit-making) organizations may also choose to apply for 
such loans, the profit-making characteristics of such organizations 
will make it more difficult for the Service to find that the 
specimen(s) proposed for import is not to be used primarily for 
commercial purposes. As in all cases, the burden rests with the 
applicant to show that this CITES requirement is satisfied. Of 
necessity, the burden of proof will be higher for commercial 
enterprises than for non-profit entities.
    3. It is the Service's policy that all funds or other valuable 
considerations raised directly or indirectly by a public institution or 
other organization that are obtained by the organization(s) or 
institution(s) involved (or any for-profit parent organization of the 
applicant, but not including unrelated private entities, such as 
hotels, not associated with the applicant) as a result of the panda 
loan are, to the extent that such funds or other valuable 
considerations exceed the reasonable expenses that are properly 
attributable to the exhibitions, to be used entirely for the non-
commercial purposes outlined in the prior section, ``Conservation 
Benefits of Specific Projects''.
    <bullet> Reasonable expenses include the following: Facility 
construction if amortized for the entire proposed length of the loan 
(but not for short-term exhibition loans), facility maintenance, direct 
labor and operating supplies needed for the care of the pandas 
(includes keeper and veterinary support), administrative support 
directly associated with the maintenance of the animals, security 
needed for the pandas, development of educational materials for use in 
China, development of educational signs for exhibits in the United 
States, and supplies or materials necessary to conduct research or 
captive-breeding activities that have been identified in the 
application.
    <bullet> It is the intent of the policy to maximize funds going 
back to conservation projects in China and, as such, costs associated 
with ordinary operations, such as advertising, general personnel costs, 
general legal expenses (not directly related to the panda loan), will 
not be considered reasonable expenses.
    <bullet> Collection of revenues generated by the panda loan by the 
importing institution (e.g., gate receipts, food and drink sales, 
tourist souvenirs), either for its own use or for the use of other 
organizations, for purposes other than those previously described, 
would be judged to be a primarily commercial activity, as would the use 
of revenues for profit-making purposes.
    4. Each applicant for a panda loan, in satisfying the applicable 
requirements of 50 CFR subchapter B, should submit a detailed plan for 
the allocation of all funds raised in excess of expenses, as a result 
of the panda loan. The application must also include a certification 
statement from a reputable, independent accounting firm stating that 
the applicant's internal accounting system is sufficient to account for 
and track funds generated directly or indirectly by the panda loan, and 
for the subsequent disbursement of funds.
    5. Each recipient of a permit to obtain a panda loan shall be 
required, in accordance with 50 CFR 13.45, to submit an annual report 
to the Service as a condition of the permit. The annual report must 
contain a full accounting of all funds raised directly or indirectly by 
the institution or organization, the portion of those funds that is in 
excess of expenses, and what portion of these funds are to be disbursed 
for giant panda conservation projects or activities as outlined in the 
prior section, ``Conservation Benefits of Specific Projects''.
    <bullet> The report must include names of people involved, location 
of the activities, a brief description of each project, and the amount 
and use of money being provided the project. The report must also 
identify specific costs that were deducted as reasonable expenses.
    <bullet> Conservation projects other than those projects presented 
in the application must receive approval from the Service's Office of 
Management Authority prior to allocating funds.
    These policy considerations will be used by the Service only for 
determining whether panda imports are primarily commercial in nature. 
They are not intended to apply to Appendix I import permit applications 
for other species. All such applications must continue to demonstrate 
that the proposed import meets the general requirements of resolution 
Conf. 5.10 to [[Page 16498]] satisfy the ``not to be used for primarily 
commercial purposes'' test.

Suitability of Facilities and Care

    Under CITES, the Service must be ``satisfied that the proposed 
recipient of a living specimen (to be imported) is suitably equipped to 
house and care for it''. Under the regulations implementing the Act, 
the Service must determine that the applicant has ``* * *the expertise, 
facilities, or other resources* * *to successfully accomplish the 
objectives* * *'' To aid in satisfying these requirements, applicants 
must provide the following information in addition to the information 
required in 50 CFR 17.22:
    <bullet> Copies of protocols for monitoring general health and 
behavior. In lieu of new protocols, an applicant may submit copies of 
protocols recommended by a coordinated international panda conservation 
effort.
    <bullet> Diagrams and photographs clearly depicting all enclosures 
where the panda may be housed, including any off-exhibit areas and 
panda holding area(s) in relation to other facilities, including roads 
adjacent to such areas.
    <bullet> Information to demonstrate the applicant has consulted 
with at least two other facilities that have successfully held pandas 
in recent years, that the applicant has facility features that address 
the National Zoological Park's recommended measures for giant panda 
care and facilities, and that zoo staff, especially keepers and 
veterinarians, have had proper training and experience to care for 
pandas.
    <bullet> Approval of facilities by the Chinese or appropriate 
authority in the lending country, if such a stipulation has been made 
in a contractual agreement. If approval has not been given prior to 
applying for the permit, there must be a statement from the applicant 
certifying that the agreement stipulation will be satisfied before 
animals are imported.

Transfer of Pandas to Other Entities Within the United States

    Applicants proposing to import giant pandas and subsequently 
transfer them to another entity within the United States should 
indicate this in the initial import application. The proposed recipient 
of the panda will need to apply for and receive an interstate commerce 
permit under the Act prior to the transfer since the pandas are being 
held under a loan (e.g., lease-hold agreement) from China or other 
lending entity. The proposed recipient of the panda needs to provide 
all the information required by the Act, its regulations, and this 
policy. The Service will facilitate, to the extent possible, the 
transfer of animals within the United States when part of a coordinated 
breeding program. If the receiving institution has a panda permit on 
file with the Service, it can reference the permit number and 
information in this file, and provide any new information for the 
Service to review in consideration of an interstate commerce permit. 
These applications will be published in the Federal Register, and so 
the applicant will need to allow at least 90 days for processing. Such 
transfers must also have the prior approval of China or the entity that 
owns the animals. The number of times an individual panda is 
transferred within the United States will be closely monitored to 
protect the overall health and well-being of the animal.

Response to the CITES Secretariat's Views on Giant Panda Loans

    The Service notes with approval the recommendation of the 
Secretariat that no exemptions be granted to the requirements of 
Article III of the Convention for the shipment of giant pandas, even 
for animals that might otherwise qualify for an exemption as ``pre-
Convention'' animals under Article VII. However, the Service does not 
have authority under U.S. law to refuse to accept a valid pre-
Convention certificate. If the Management Authority of the country of 
origin or of the country of re-export does not issue a pre-Convention 
certification, the Service will require a U.S. import permit and export 
permit or re-export certificate, as appropriate, from the exporting or 
re-exporting country in accordance with Article III of the Convention. 
In addition, even if a valid pre-Convention certificate is issued by 
the exporting country, an import permit would be required under the Act 
for all panda loans (and an export permit, if the pandas are to leave 
the United States), even for pandas acquired prior to January 23, 1984 
(the date of the final Federal Register notice listing the giant panda 
under the Act), as the pre-Act exemption (Section 9(b)(1) of the Act) 
does not apply to animals that are subsequently held in the course of a 
commercial activity (e.g., lease-hold agreement).
    The Service will also continue its policy of approving applications 
only if it is sure that the proposed loan did not, or will not, 
contribute to removal of pandas from the wild, and that the non-
commercial purposes for the proposed loan predominate.
    This notice was prepared under the authority of the Endangered 
Species Act of 1973, as amended (16 U.S.C. 1531 et seq.).

    Dated: February 21, 1995.
George T. Frampton, Jr.,
Assistant Secretary for Fish and Wildlife and Parks.
[FR Doc. 95-7851 Filed 3-29-95; 8:45 am]
BILLING CODE 4310-55-P