80 FR 15673 - Fruit, Vegetable, and Specialty Crops-Import Regulations; Changes to Reporting Requirements To Add Electronic Form Filing Option

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 57 (March 25, 2015)

This rule changes the reporting requirements for commodities exempt from import regulations under section 608(e) (hereinafter referred to as ``8e'') of the Agricultural Marketing Agreement Act of 1937 by adding an option to electronically file an ``Importer's Exempt Commodity Form'' (FV-6 form). These changes are needed to bring the import regulations into conformance with the current practice of filing FV-6 forms electronically using the Marketing Order Online System (MOLS), an internet-based application that was implemented in 2008. This rule also changes the import regulations for dates and raisins by moving the FV-6 form-filing procedures for these two commodities to the safeguard procedure regulations for specialty crops and by making other administrative updates. These changes to the import regulations are also required to support the International Trade Data System (ITDS), a key White House economic initiative that will automate the filing of import and export information by the trade. All government agencies that are participating in the ITDS initiative, including AMS, are required by U.S. Customs and Border Protection (hereinafter referred to as ``CBP'') to make updates to import and export regulations to provide for the electronic entry of shipment data.

[Federal Register Volume 80, Number 57 (Wednesday, March 25, 2015)]
[Rules and Regulations]
[Pages 15673-15679]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-06490]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 944, 980, and 999

[Doc. No. AMS-FV-14-0093; FV15-944/980/999-1 IR]


Fruit, Vegetable, and Specialty Crops--Import Regulations; 
Changes to Reporting Requirements To Add Electronic Form Filing Option

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This rule changes the reporting requirements for commodities 
exempt from import regulations under section 608(e) (hereinafter 
referred to as ``8e'') of the Agricultural Marketing Agreement Act of 
1937 by adding an option to electronically file an ``Importer's Exempt 
Commodity Form'' (FV-6 form). These changes are needed to bring the 
import regulations into conformance with the current practice of filing 
FV-6 forms electronically using the Marketing Order Online System 
(MOLS), an internet-based application that was implemented in 2008. 
This rule also changes the import regulations for dates and raisins by 
moving the FV-6 form-filing procedures for these two commodities to the 
safeguard procedure regulations for specialty crops and by making other 
administrative updates. These changes to the import regulations are 
also required to support the International Trade Data System (ITDS), a 
key White House economic initiative that will automate the filing of 
import and export information by the trade. All government agencies 
that are participating in the ITDS initiative, including AMS, are 
required by U.S. Customs and Border Protection (hereinafter referred to 
as ``CBP'') to make updates to import and export regulations to provide 
for the electronic entry of shipment data.

DATES: Effective March 30, 2015; comments received by May 26, 2015 will 
be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Fruit and Vegetable Program, 
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. All comments should reference the document number 
and the date and page number of this

[[Page 15674]]

issue of the Federal Register and will be made available for public 
inspection in the Office of the Docket Clerk during regular business 
hours, or can be viewed at: http://www.regulations.gov. All comments 
submitted in response to this rule will be included in the record and 
will be made available to the public. Please be advised that the 
identity of the individuals or entities submitting the comments will be 
made public on the internet at the address provided above.

FOR FURTHER INFORMATION CONTACT: Richard Lower, Senior Marketing 
Specialist, or Candice Spalding, Deputy Director, Marketing Order and 
Agreement Division, Fruit and Vegetable Program, AMS, USDA; Telephone: 
(202) 720-2491, Fax: (202) 720-8938, or Email: 
[email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under section 8e of the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.'' Section 8e provides that 
whenever certain commodities are regulated under Federal marketing 
orders, imports of those commodities into the United States are 
prohibited unless they meet the same or comparable grade, size, 
quality, and/or maturity requirements as those in effect for the 
domestically produced commodities. The Act also authorizes USDA to 
perform inspections on those imported commodities and certify whether 
these requirements have been met.
    Parts 944, 980, and 999 of title 7 of the Code of Federal 
Regulations (CFR) specify which imported commodities may be exempt from 
grade, size, quality, and/or maturity requirements when imported for 
specific purposes, such as processing, donation to charitable 
organizations, or livestock feed. These parts further specify the form 
importers must use to report to USDA and CBP imports of commodities 
exempt from 8e regulations.
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect.
    There are no administrative procedures that must be exhausted prior 
to any judicial challenge to the provisions of import regulations 
issued under section 8e of the Act.
    This rule changes Sec. Sec.  944.350, 980.501, and 999.500 of the 
import regulations, which specify safeguard procedures for fruits, 
vegetables, and specialty crops, respectively, that are exempt from 8e 
regulations. Currently, safeguard procedures exist for the following 
commodities: Avocados, grapefruit, kiwifruit, fresh prunes (suspended 
indefinitely in 2006), olives, oranges, table grapes, Irish potatoes, 
onions, tomatoes, dates, walnuts, raisins, and pistachios.
    The safeguard procedures require that importers and receivers 
certify to AMS by filing an FV-6 form that an imported commodity is 
sent to and used in an exempt outlet as authorized by the regulations 
and as declared on the FV-6 form. Examples of authorized exempt uses 
include processing, livestock feed, seed, and distribution to 
charitable organizations or relief agencies. Prior to this change, the 
safeguard procedures specified requirements for filing a paper copy of 
an FV-6 form for an imported shipment intended for an exempted purpose, 
with an ``online'' submission option also provided for in Sec.  
999.500. These sections will now provide options to submit an FV-6 form 
either electronically or on paper.
    In addition, the three import safeguard sections have been updated 
to reflect that the definition of an importer includes a customs 
broker, when that broker is acting as an importer's representative, and 
to clarify that both an importer and a receiver must certify an FV-6 
form. Changes have also been made to update contact information (for 
example, agency name, email address, etc.).
    This rule also changes Sec. Sec.  999.1 and 999.300, the date and 
raisin import regulations, respectively, by moving the procedures for 
filing FV-6 forms for dates or raisins that are exempt from 8e 
regulations from those sections to the specialty crops safeguard 
procedures section (Sec.  999.500). This change makes the safeguard 
regulations consistent for walnuts, dates, pistachios, and raisins that 
are exempt from 8e regulations. This rule also makes minor 
administrative updates and corrections to Sec. Sec.  999.1 and 999.300 
(for example, updating division names and correcting typographical 
errors).

Importer's Exempt Commodity Form (FV-6)

    The import regulations in parts 944, 980, and 999 provide that 
individual lots of some imported commodities may be exempted from 8e 
requirements if those commodities are intended to be used in processing 
or in some other exempted outlet, such as a charitable organization or 
as livestock feed. To import exempt commodities into the United States, 
importers and receivers are required to certify to USDA and CBP as to 
the intended, authorized exempt use of those commodities. Certification 
is reported by both importers and receivers using an FV-6 form 
(``Importer's Exempt Commodity Form'').

Submission of FV-6 Form

    Prior to 2008, an FV-6 form was only available in a paper format. 
The paper FV-6 form is a four-part form that is used as follows: One 
part is presented to CBP by the importer; one part accompanies the 
import shipment to its destination, where the receiver of the shipment 
certifies its receipt and submits that certified copy to AMS' Marketing 
Order and Agreement Division (MOAD) for compliance purposes; one part 
is submitted to MOAD by the importer; and one part is retained by the 
importer.
    To streamline and automate the FV-6 filing process, in August 2008, 
AMS launched its Marketing Order Online System (MOLS), an internet-
based application, which continues to be used today. Using MOLS, 
importers and receivers complete an electronic registration process 
that allows them to utilize the system for the completion and 
certification of FV-6 forms.
    After registering in MOLS, and prior to importing a commodity for 
an exempt purpose, an importer electronically completes an FV-6 form in 
MOLS, certifying that the commodity will be used in the declared exempt 
outlet. After inputting the required FV-6 form data in MOLS, an 
importer is able to print a certificate for the exempt commodity that 
accompanies that shipment into the United States. Each certificate has 
a unique identification number.
    The FV-6 form data input into MOLS by an importer is accessible to 
the receiver of the imported commodity as well as to AMS. The receiver 
must certify in MOLS that he or she received the imported commodity and 
that it was or will be used for the declared exempt purpose; this 
certification must be completed within two days of receipt of the 
exempt commodity.

[[Page 15675]]

    MOAD uses MOLS to monitor industry compliance with 8e regulations. 
Using MOLS and other data available from CBP, MOAD is able to identify 
shipments that require the submission of FV-6 forms as well as FV-6 
forms that have been initiated but not yet completed.
    The majority of all FV-6 forms are filed electronically using MOLS. 
However, MOAD continues to maintain a supply of paper FV-6 forms for 
use in those rare instances where an importer or receiver is unable to 
use MOLS. In those cases, MOAD tracks the distribution of the paper 
forms by maintaining a log of the form numbers and the contact 
information of the importers to whom the paper forms were provided.
    When MOLS was implemented in 2008, the regulations for imported 
fruit, vegetable, and specialty crops were not updated to provide for 
the option to enter an FV-6 form electronically, in addition to the 
paper form option. However, in 2012, the specialty crop safeguard 
regulations (Sec.  999.500) were amended to include an ``online'' 
option for the submission of FV-6 forms to MOAD. This ``online'' 
submission change was made in a final rule that was published in the 
Federal Register on August 27, 2012, (77 FR 51686).
    This rule updates all of the safeguard procedures in the fruit, 
vegetable, and specialty crop import regulations to add the option to 
file an FV-6 form electronically (for consistency among the three 
safeguard procedures, the term ``online'' in Sec.  999.500 is changed 
to ``electronically''). Other changes to the safeguard procedures 
include the following clarifications and updates: (1) A customs broker, 
acting as a representative for an importer, is considered an 
``importer''; (2) both an importer and a receiver must certify an FV-6 
form; (3) paper versus electronic FV-6 form requirements (for example, 
an importer and receiver must certify a paper FV-6 form using a 
handwritten signature, whereas certification is automated when the form 
is submitted electronically); and (4) updates to MOAD and CBP contact 
information. These changes do not add new requirements to the 
regulations but are intended to provide clarity and up-to-date 
information.

Date and Raisin Regulation Changes

    On January 16, 2009, a final rule was published in the Federal 
Register (74 FR 2806) that changed, among other things, the import 
regulations for dates and raisins (Sec. Sec.  999.1 and 999.300, 
respectively) by replacing four commodity-specific import exemption 
forms with the FV-6 form; specifically, the FV-6 form replaced Date 
Forms No. 1 and 2 and Raisin Form Nos. 1 and 2. In that 2009 action, 
the form names were changed in the regulations; however, the submission 
requirements that were associated with the former date- and raisin-
specific forms were not updated accordingly. As a result, the date and 
raisin regulations have continued to require that a certified FV-6 form 
be submitted to MOAD by the fifth day of the month in the month 
following receipt of the exempt dates or raisins by the receiver. This 
submission requirement is associated with the forms that were replaced 
in 2009 and is not applicable to an FV-6 form. Therefore, the old 
submission deadline has been removed by this action.
    In addition to removing the obsolete exempt form submission 
deadline requirement, the requirements for filing an FV-6 form for a 
shipment of dates or raisins exempted from 8e regulations have been 
moved from Sec. Sec.  999.1 and 999.300, respectively, to the safeguard 
procedures section for specialty crops (Sec.  999.500). The import 
regulations for dates and raisins still reference the types of dates 
and raisins that are exempted from 8e requirements provided that those 
dates and raisins follow the safeguard procedures contained in Sec.  
999.500.
    Prior to this change, Sec.  999.500 contained safeguard procedures 
for filing an FV-6 form for walnuts, certain types of dates, and 
pistachios, while the requirements for certain other types of dates and 
for raisins were contained in the import regulations for those two 
import commodities. Incorporating the safeguard procedures for dates 
and raisins into the specialty crop safeguard procedures streamlines 
and standardizes the specialty crop regulations.
    Finally, the date and raisin import regulations are further changed 
to include miscellaneous updates, such as updating agency names, 
deleting outdated references to terms no longer applicable to the 
regulations, and correcting typographical errors. These changes are 
administrative in nature and do not impose any new requirements on 
importers or receivers.

International Trade Data System (ITDS)

    Changing the 8e regulations to provide for the electronic filing of 
an FV-6 form supports the International Trade Data System (ITDS), a key 
White House economic initiative that has been under development for 
over ten years and is mandated for completion by December 31, 2016 
(pursuant to Executive Order 13659, Streamlining the Export/Import 
Process for America's Businesses, signed by President Obama on February 
19, 2014). Under ITDS, the import and export trade will file shipment 
data through an electronic ``single window,'' instead of completing 
multiple paper-based forms to report the same information to different 
government agencies. ITDS will greatly reduce the burden on America's 
import and export trade while still providing information necessary for 
the United States to ensure compliance with its laws.
    By the end of 2016, the ITDS ``single window'' will be presented to 
the import and export trade through CBP's Automated Commercial 
Environment (ACE) platform. ACE will be the primary system through 
which the global trade community will file information about imports 
and exports so that admissibility into the U.S. may be determined and 
government agencies may monitor compliance.
    Prior to the implementation of the ITDS ``single window,'' CBP is 
requiring that the 47 partnering government agencies that are 
participating in the ITDS project, including AMS, ensure that agency 
regulations provide for the electronic entry of import and/or export 
information.
    MOAD is currently developing a new automated system called the 
Compliance and Enforcement Management System (CEMS) that will interface 
with CBP's ACE system in support of ITDS. CEMS will electronically link 
with the ACE system to create a ``pipeline'' through which data will be 
transmitted between MOAD and CBP. CEMS will contain several components, 
including an exempt imported commodities module that will replace MOLS. 
Until CEMS is implemented, MOLS will continue to allow for the 
electronic entry and certification of FV-6 form data.
    The revised reporting requirements for imported commodities that 
are exempt from 8e regulations will bring the fruit, vegetable, and 
specialty crop import regulations into conformance with the current 
standard industry practice of filing FV-6 forms electronically using 
MOLS. This change will also meet CBP's requirements for ITDS/ACE by 
adding the existing electronic filing option for FV-6 forms to the 
safeguard procedures in the import regulations.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this

[[Page 15676]]

action on small entities. Accordingly, AMS has prepared this initial 
regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf. Import regulations issued under 
the Act are based on those established under Federal marketing orders.
    Small agricultural service firms, which include importers and 
receivers of commodities exempt from import regulations, are defined by 
the Small Business Administration (SBA) as those having annual receipts 
of less than $7,000,000 (13 CFR 121.201). USDA estimates that there are 
approximately 220 importers and receivers of commodities that are 
exempt from 8e requirements. Although USDA does not have access to data 
about the business sizes of these importers and receivers, it is likely 
that the majority may be classified as small entities.
    This action adds to the import regulations the existing option of 
electronically reporting on shipments of imported fruits, vegetables, 
and specialty crops that are exempt from 8e regulations. Importers and 
receivers of exempt commodities have been filing FV-6 forms 
electronically for several years, since the implementation of MOLS in 
2008. There are an estimated 100 importers and 92 receivers of 
commodities exempt from 8e requirements who report exempt shipment 
information electronically using MOLS. During the two-year period 2013-
2014, USDA information shows that 637,818,253 pounds of exempt 
commodities were electronically reported on 12,832 FV-6 forms. The 
table below provides a breakdown of this information by commodity:

 Commodities Reported Electronically as Exempt From Import Regulations--
                                2013-2014
------------------------------------------------------------------------
                                                          Electronic FV-
                Commodity                     Pounds          6 Forms
------------------------------------------------------------------------
Avocados................................         757,939              33
Dates...................................       1,029,855              37
Grapefruit..............................         511,965              14
Kiwifruit...............................             360               1
Olives..................................          79,858               3
Onions..................................      17,959,787             418
Oranges.................................      46,441,261           1,138
Potatoes................................     570,971,367          11,172
Tomatoes................................          65,861              16
                                         -------------------------------
    Total...............................     637,818,253          12,832
------------------------------------------------------------------------

    In comparison, USDA received only 365 paper FV-6 forms from 
importers and receivers for all exempted commodities in 2013-2014. As 
mentioned earlier, the majority of FV-6 forms are filed electronically.
    This change to the import regulations does not revise the 
procedures currently used by importers and receivers to report 
shipments that are exempt from 8e regulations. Most importers and 
receivers already file FV-6 forms electronically using MOLS and will 
continue to do so. In the future, importers and receivers will report 
these exempt shipments electronically through CBP's ACE system or 
MOAD's CEMS system, which is currently under development and will 
eventually replace MOLS. This action imposes no additional cost or 
burden on importers and receivers of any size.
    The current process of electronically filing FV-6 forms streamlines 
business operations, both for filers of the forms as well as for USDA, 
which uses the electronic form data to monitor compliance with 8e 
regulations. Changing the regulations to include the current standard 
industry practice of filing FV-6 forms electronically also meets CBP's 
requirement to ensure that the regulations of those government agencies 
participating in the ITDS project provide for an electronic data 
collection. The electronic filing option for FV-6 forms has existed for 
many years, and this change aligns the regulations with that 
longstanding industry practice.
    Regarding alternatives to this action, AMS considered making no 
changes to the import regulations. However, AMS determined that the 
regulations should contain complete and accurate information about the 
electronic option that is already available to importers and receivers 
to file FV-6 forms. AMS also determined that moving the safeguard 
procedures for dates and raisins exempted from 8e regulations to the 
specialty crop safeguard section will standardize the regulations, 
which will benefit importers and receivers who use these regulations. 
Finally, CBP is requiring all government agencies who are partnering 
with CBP on the ITDS project (including AMS) to update their 
regulations to provide for the electronic entry of import and export 
shipment data. Therefore, the alternative to not update the regulations 
alternative was rejected.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection requirements for the FV-6 form 
and imported commodities exempt from 8e regulations were previously 
approved by the Office of Management and Budget (OMB) and assigned OMB 
No. 0581-0167 (Specific Commodities Imported into the United States 
Exempt From Import Regulations), effective August 19, 2014. 
Administrative modifications to the FV-6 form and the shift of 
exemption authority for dates and raisins from Sec. Sec.  999.1 and 
999.300, respectively, to Sec.  999.500, as necessitated by this 
rulemaking action, have been submitted to OMB for approval. Because 
importers and receivers of dates and raisins exempt from import 
regulations will continue to file FV-6 forms, the burden hours 
associated with OMB No. 0581-0167 remain unchanged at 17,734 hours. 
Should additional changes become necessary, they would be submitted to 
OMB for approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large importers or receivers of 
commodities exempt from 8e regulations. As with all import regulations, 
reports and forms are periodically reviewed to reduce information 
requirements and

[[Page 15677]]

duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap or conflict with this rule.
    Further, importers and receivers of commodities exempt from 8e 
regulations have been using MOLS for more than six years to 
electronically complete and certify FV-6 forms. The import trade is 
also fully aware of the ITDS initiative, which is designed to eliminate 
paper-based manual processes and replace those processes with 
electronic entry methods such as the one used to electronically file 
FV-6 forms.
    Finally, interested persons are invited to submit comments on this 
interim rule, including the regulatory and informational impacts of 
this action on small businesses.
    This rule invites comments on a change that aligns the fruit, 
vegetable, and specialty crop import regulations with the standard 
practice of allowing importers and receivers of exempt commodities the 
option to submit FV-6 forms electronically. Any comments received will 
be considered prior to finalization of this rule.
    After consideration of all relevant material presented, it is found 
that this interim rule, as hereinafter set forth, will tend to 
effectuate the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) This rule does not impose any new requirements on 
importers or receivers of imported commodities; (2) this rule 
clarifies, updates, and standardizes exempt commodity form-filing 
requirements and related information, which should benefit importers 
and receivers; (3) the import industry is well aware of the ITDS 
initiative and its goal to streamline and automate paper-based 
processes; (4) CPB is requiring timely update of import and export 
regulations to meet the ITDS electronic entry requirement; and (5) this 
rule provides a 60-day comment period, and any comments received will 
be considered prior to finalization of this rule.

List of Subjects

7 CFR Part 944

    Avocados, Food grades and standards, Grapefruit, Grapes, Imports, 
Kiwifruit, Limes, Olives, Oranges.

7 CFR Part 980

    Food grades and standards, Imports, Marketing agreements, Onions, 
Potatoes, Tomatoes.

7 CFR Part 999

    Dates, Filberts, Food grades and standards, Imports, Nuts, Prunes, 
Raisins, Reporting and recordkeeping requirements, Walnuts.

    For the reasons set forth in the preamble, 7 CFR parts 944, 980, 
and 999 are amended as follows:

0
1. The authority citation for 7 CFR parts 944 and 980 continues to read 
as follows:

    Authority: 7 U.S.C. 601-674.

PART 944--FRUITS; IMPORT REGULATIONS

0
2. Revise Sec.  944.350 to read as follows:


Sec.  944.350  Safeguard procedures for avocados, grapefruit, 
kiwifruit, olives, oranges, prune variety plums (fresh prunes), and 
table grapes, exempt from grade, size, quality, and maturity 
requirements.

    (a) Each person who imports or receives any of the commodities 
listed in paragraphs (a)(1) through (5) of this section shall file 
(electronically or paper) an ``Importer's Exempt Commodity Form'' (FV-
6) with the Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA. A ``person who imports'' may include a customs 
broker, acting as an importer's representative (hereinafter referred to 
as ``importer''). A copy of the completed form (electronic or paper) 
shall be provided to the U.S. Customs and Border Protection. If a paper 
form is used, a copy of the form shall accompany the lot to the exempt 
outlet specified on the form. Any lot of any commodity offered for 
inspection and, all or a portion thereof, subsequently imported as 
exempt under this provision shall also be reported on an FV-6 form. 
Such form (electronic or paper) shall be provided to the Marketing 
Order and Agreement Division in accordance with paragraph (d) of this 
section. The applicable commodities are:
    (1) Avocados, grapefruit, kiwifruit, olives, oranges, and prune 
variety plums (fresh prunes) for consumption by charitable institutions 
or distribution by relief agencies;
    (2) Avocados, grapefruit, kiwifruit, oranges, prune variety plums 
(fresh prunes), and table grapes for processing;
    (3) Olives for processing into oil;
    (4) Grapefruit for animal feed; or
    (5) Avocados for seed.
    (b) Certification of exempt use. (1) Each importer of an exempt 
commodity as specified in paragraph (a) of this section shall certify 
on the FV-6 form (electronic or paper) as to the intended exempt outlet 
(e.g., processing, charity, livestock feed). If certification is made 
using a paper FV-6 form, the importer shall provide a handwritten 
signature on the form.
    (2) Each receiver of an exempt commodity as specified in paragraph 
(a) of this section shall also receive a copy of the associated FV-6 
form (electronic or paper) filed by the importer. Within two days of 
receipt of the exempt lot, the receiver shall certify on the form 
(electronic or paper) that such lot has been received and will be 
utilized in the exempt outlet as certified by the importer. If 
certification is made using a paper FV-6 form, the receiver shall 
provide a handwritten signature on the form.
    (c) It is the responsibility of the importer to notify the 
Marketing Order and Agreement Division of any lot of exempt commodity 
rejected by a receiver, shipped to an alternative exempt receiver, 
exported, or otherwise destroyed. In such cases, a second FV-6 form 
must be filed by the importer, providing sufficient information to 
determine ultimate disposition of the exempt lot, and such disposition 
shall be so certified by the final receiver.
    (d) All FV-6 forms and other correspondence regarding entry of 
exempt commodities must be submitted electronically, by mail, or by fax 
to the Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, 
DC 20250-0237; telephone (202) 720-2491; email 
[email protected]; or fax (202) 720-5698.

PART 980--VEGETABLES; IMPORT REGULATIONS

0
3. Revise Sec.  980.501 to read as follows:


Sec.  980.501  Safeguard procedures for potatoes, onions, and tomatoes 
exempt from grade, size, quality, and maturity requirements.

    (a) Each person who imports or receives any of the commodities 
listed in paragraphs (a)(1) through (4) of this section shall file 
(electronically or paper) an ``Importer's Exempt

[[Page 15678]]

Commodity Form'' (FV-6) with the Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA. A ``person who 
imports'' may include a customs broker, acting as an importer's 
representative (hereinafter referred to as ``importer''). A copy of the 
completed form (electronic or paper) shall be provided to the U.S. 
Customs and Border Protection. If a paper form is used, a copy of the 
form shall accompany the lot to the exempt outlet specified on the 
form. Any lot of any commodity offered for inspection and, all or a 
portion thereof, subsequently imported as exempt under this provision 
shall also be reported on an FV-6 form. Such form (electronic or paper) 
shall be provided to the Marketing Order and Agreement Division in 
accordance with paragraph (d) of this section. The applicable 
commodities are:
    (1) Potatoes, onions or tomatoes for consumption by charitable 
institutions or distribution by relief agencies;
    (2) Potatoes, onions, or tomatoes for processing;
    (3) Potatoes or onions for livestock feed; or
    (4) Pearl onions.
    (b) Certification of exempt use. (1) Each importer of an exempt 
commodity as specified in paragraph (a) of this section shall certify 
on the FV-6 form (electronic or paper) as to the intended exempt outlet 
(e.g., processing, charity, livestock feed). If certification is made 
using a paper FV-6 form, the importer shall provide a handwritten 
signature on the form.
    (2) Each receiver of an exempt commodity as specified in paragraph 
(a) of this section shall also receive a copy of the associated FV-6 
form (electronic or paper) filed by the importer. Within two days of 
receipt of the exempt lot, the receiver shall certify on the form 
(electronic or paper) to the Marketing Order and Agreement Division 
that such lot has been received and will be utilized in the exempt 
outlet as certified by the importer. If certification is made using a 
paper FV-6 form, the receiver shall provide a handwritten signature on 
the form.
    (c) It is the responsibility of the importer to notify the 
Marketing Order and Agreement Division of any lot of exempt commodity 
rejected by a receiver, shipped to an alternative exempt receiver, 
returned to the country of origin, or otherwise disposed of. In such 
cases, a second FV-6 form must be filed by the importer, providing 
sufficient information to determine ultimate disposition of the exempt 
lot, and such disposition shall be so certified by the final receiver.
    (d) All FV-6 forms and other correspondence regarding entry of 
exempt commodities must be submitted electronically, by mail, or by fax 
to the Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, 
DC 20250-0237; telephone (202) 720-2491; email 
[email protected]; or fax (202) 720-5698.

PART 999--SPECIALTY CROPS; IMPORT REGULATIONS

0
4. The authority citation for 7 CFR part 999 is revised to read as 
follows:

    Authority: 7 U.S.C. 601-674.

0
5. In Sec.  999.1:
0
a. Remove paragraph (a)(7);
0
b. Redesignate paragraphs (a)(8) through (10) as paragraphs (a)(7) 
through (9), respectively;
0
c. Revise newly redesignated paragraphs (a)(7) and (9);
0
d. Revise paragraph (c)(2)(vi);
0
e. Revise paragraph (d);
0
f. Revise paragraph (e);
0
g. Remove paragraphs (f) and (g); and
0
h. Redesignate paragraphs (h) through (k) as paragraphs (f) through 
(i), respectively.
    The revisions read as follows:


Sec.  999.1  Regulation governing the importation of dates.

    (a) * * *
    (7) USDA inspector means an inspector of the Specialty Crops 
Inspection Division, Fruit and Vegetable Program, or any other duly 
authorized employee of the USDA.
* * * * *
    (9) Importation means release from custody of United States Customs 
and Border Protection.
* * * * *
    (c) * * *
    (2) * * *
    (vi) If the lot fails to meet the import requirements, a statement 
to that effect and the reasons therefor.
    (d) Exemptions. (1) Notwithstanding any other provisions of this 
section, any lot of dates for importation which in the aggregate does 
not exceed 70 pounds and any dates that are so denatured as to render 
them unfit for human consumption may be imported exempt from the 
provisions of this section.
    (2) The grade, size, quality, and maturity requirements of this 
section shall not apply to dates which are donated to needy persons, 
prisoners, or Native Americans on reservations; dates for processing; 
or dates prepared or preserved, but all such dates shall be subject to 
the safeguard provisions contained in Sec.  999.500.
    (3) Dates for packaging or dates in retail packages that fail to 
meet the grade, size, quality, and maturity requirements of this 
section may be reclassified as dates for processing for importation, 
but such dates shall be subject to the safeguard provisions contained 
in Sec.  999.500.
    (e) Importation. No person may import dates into the United States 
unless he or she first files with Customs and Border Protection at the 
port at which the Customs entry is filed, as a condition of each such 
importation, either an inspection certificate or an executed 
``Importer's Exempt Commodity Form'' (FV-6).
* * * * *

0
6. In Sec.  999.300:
0
a. Remove paragraphs (a)(5) and (8);
0
b. Redesignate paragraphs (a)(6) and (a)(7) as paragraphs (a)(5) and 
(6), respectively;
0
c. Revise newly redesignated paragraphs (a)(5) and (6);
0
d. Revise the last sentence in paragraph (c)(3); and
0
e. Revise paragraph (e)(2).
    The revisions read as follows:


Sec.  999.300  Regulation governing importation of raisins.

    (a) * * *
    (5) USDA inspector means an inspector of the Specialty Crops 
Inspection Division, Fruit and Vegetable Program, Agricultural 
Marketing Service, U.S. Department of Agriculture, or any other duly 
authorized employee of the U.S. Department of Agriculture.
    (6) Importation of raisins means the release of raisins from 
custody of the U.S. Customs and Border Protection.
* * * * *
    (c) * * *
    (3) * * * To avoid delay in scheduling the inspection the applicant 
should make advance arrangements with the USDA inspection office.
* * * * *
    (e) * * *
    (2) Any lot of raisins which does not meet the applicable grade and 
size requirements of paragraph (b) of this section may be imported for 
use in the production of alcohol, syrup for industrial use, or any lot 
of raisins which does not meet such requirements with respect to 
mechanical damage or sugaring may be imported for use in the production 
of raisin paste, but all such raisins shall be subject to the safeguard 
provisions contained in Sec.  999.500.
* * * * *

0
7. Revise Sec.  999.500 to read as follows:

[[Page 15679]]

Sec.  999.500  Safeguard procedures for walnuts, dates, pistachios, and 
raisins exempt from grade, size, quality, and maturity requirements.

    (a) Each person who imports or receives any of the commodities 
listed in paragraphs (a)(1) through (4) of this section shall file 
(electronically or paper) an ``Importer's Exempt Commodity Form'' (FV-
6) with the Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA. A ``person who imports'' may include a customs 
broker, acting as an importer's representative (hereinafter referred to 
as ``importer''). A copy of the form (electronic or paper) shall be 
provided to the U.S. Customs and Border Protection. If a paper form is 
used, a copy of the form shall accompany the lot to the exempt outlet 
specified on the form. Any lot of any commodity offered for inspection 
or aflatoxin testing and, all or a portion thereof, subsequently 
imported as exempt under this provision shall also be reported on an 
FV-6. Such form (electronic or paper) shall be provided to the 
Marketing Order and Agreement Division in accordance with paragraph (d) 
of this section. The applicable commodities are:
    (1) Dates which are donated to needy persons, prisoners or Native 
Americans on reservations; dates for processing; dates prepared or 
preserved; or dates for packaging or dates in retail packages that fail 
to meet grade, size, quality, and maturity requirements and are 
reclassified as dates for processing;
    (2) Walnuts which are: Green walnuts (so immature that they cannot 
be used for drying and sale as dried walnuts); walnuts used in non-
competitive outlets such as use by charitable institutions, relief 
agencies, governmental agencies for school lunch programs, and 
diversion to animal feed or oil manufacture;
    (3) Substandard pistachios which are for non-human consumption 
purposes; or
    (4) Raisins which do not meet grade and size requirements and are 
used in the production of alcohol, or syrup for industrial use, or 
which do not meet grade requirements with respect to mechanical damage 
or sugaring and are used in the production of raisin paste.
    (b) Certification of exempt use. (1) Each importer of an exempt 
commodity as specified in paragraph (a) of this section shall certify 
on the FV-6 form (electronic or paper) as to the intended exempt outlet 
(e.g., processing, charity, livestock feed). If certification is made 
using a paper FV-6 form, the importer shall provide a handwritten 
signature on the form.
    (2) Each receiver of an exempt commodity as specified in paragraph 
(a) of this section shall also receive a copy of the associated FV-6 
form (electronic or paper) filed by the importer. Within two days of 
receipt of the exempt lot, the receiver shall certify on the form 
(electronic or paper) that such lot has been received and will be 
utilized in the exempt outlet as certified by the importer. If 
certification is made using a paper FV-6 form, the receiver shall 
provide a handwritten signature on the form.
    (c) It is the responsibility of the importer to notify the 
Marketing Order and Agreement Division of any lot of exempt commodity 
rejected by a receiver, shipped to an alternative exempt receiver, 
exported, or otherwise disposed of. In such cases, a second FV-6 form 
must be filed by the importer, providing sufficient information to 
determine ultimate disposition of the exempt lot, and such disposition 
shall be so certified by the final receiver.
    (d) All FV-6 forms and other correspondence regarding entry of 
exempt commodities must be submitted electronically, by mail, or by fax 
to the Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, 
DC 20250-0237; telephone (202) 720-2491; email 
[email protected]; or fax (202) 720-5698.

    Dated: March 17, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-06490 Filed 3-24-15; 8:45 am]
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