81 FR 87849 - Changes to Reporting Requirements-Vegetable and Specialty Crop Import Regulations; and Other Clarifying Changes-Fruit, Vegetable, and Specialty Crop Import Regulations

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 234 (December 6, 2016)

This proposed rule would change the reporting requirements for certain Irish potatoes, tomatoes, and onions regulated under Sec. 608(e) of the Agricultural Marketing Agreement Act of 1937 (section 8e of the Act) by requiring importers of those regulated commodities that have been certified by a designated governmental inspection service other than the Federal or Federal-State Inspection Service as meeting 8e requirements to provide the inspection certificate number and a copy of the certificate to AMS (currently, the Canadian Food Inspection Agency is the only entity so designated). In addition, the pistachio import regulations would be changed to provide for the electronic filing of aflatoxin test results and to eliminate a requirement to report the disposition of reworked or failed lots of pistachios. Other changes would be made to several of the 8e regulations to remove or replace outdated information. These changes would allow AMS to confirm that section 8e regulatory requirements are being met and would also 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.

[Federal Register Volume 81, Number 234 (Tuesday, December 6, 2016)]
[Proposed Rules]
[Pages 87849-87856]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29016]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 81, No. 234 / Tuesday, December 6, 2016 / 
Proposed Rules

[[Page 87849]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 944, 980, and 999

[Doc. No. AMS-SC-16-0064; SC16-980-1 PR]


Changes to Reporting Requirements--Vegetable and Specialty Crop 
Import Regulations; and Other Clarifying Changes--Fruit, Vegetable, and 
Specialty Crop Import Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would change the reporting requirements for 
certain Irish potatoes, tomatoes, and onions regulated under Sec.  
608(e) of the Agricultural Marketing Agreement Act of 1937 (section 8e 
of the Act) by requiring importers of those regulated commodities that 
have been certified by a designated governmental inspection service 
other than the Federal or Federal-State Inspection Service as meeting 
8e requirements to provide the inspection certificate number and a copy 
of the certificate to AMS (currently, the Canadian Food Inspection 
Agency is the only entity so designated). In addition, the pistachio 
import regulations would be changed to provide for the electronic 
filing of aflatoxin test results and to eliminate a requirement to 
report the disposition of reworked or failed lots of pistachios. Other 
changes would be made to several of the 8e regulations to remove or 
replace outdated information. These changes would allow AMS to confirm 
that section 8e regulatory requirements are being met and would also 
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.

DATES: Comments must be received by January 5, 2017.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Specialty Crops 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 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 proposal 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: Shannon Ramirez, Compliance and 
Enforcement Specialist, or Vincent Fusaro, Compliance and Enforcement 
Branch Chief, Specialty Crops Program, AMS, USDA; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: [email protected]s.usda.gov or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops 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 proposed 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 to certify 
whether those requirements have been met.
    Parts 944, 980, and 999 of title 7 of the Code of Federal 
Regulations (CFR) specify inspection, certification, and reporting 
requirements for imported commodities regulated under 8e, including the 
governmental inspection services that are authorized to perform 
certification.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 12866, 13563, and 13175.
    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This proposed 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 proposal invites comments on revisions to the reporting 
requirements for certain Irish potatoes, tomatoes, and onions regulated 
under part 980, the vegetable import regulations. This proposal would 
require importers of those regulated commodities that have been 
certified by a designated governmental inspection service other than 
the Federal or Federal-State Inspection Service as meeting 8e 
requirements to electronically enter the inspection certificate number 
and upload an electronic copy of the certificate to AMS. Currently, the 
Canadian Food Inspection Agency (CFIA) is the only designated non-
Federal/Federal-State Inspection Service; therefore, references to the 
reporting requirement proposed in this rule will hereinafter be 
described as ``CFIA'' or ``Canadian'' inspection certificates and/or 
inspection information.
    In the event an importer was unable to enter the CFIA inspection 
information electronically, he or she would be required to provide a 
copy of the certificate to AMS via email, mail, or facsimile.
    In addition, this rule proposes changes to two pistachio import 
reporting requirements in Sec.  999.600 of the specialty crop import 
regulations: the Imported Pistachios--Lot Notification report (form FV-
249) and the Imported Pistachios--Rework and Failed Lot Disposition 
report (form FV-251). Both forms have been previously

[[Page 87850]]

approved for use by the Office of Management and Budget (OMB) under OMB 
No. 0581-0215, Pistachios Grown in California, Arizona, and New Mexico 
(although these two forms are included in the OMB information 
collection for the domestic pistachio marketing order, they are used 
strictly for reporting related to imported pistachios). The pistachio 
regulations currently require that USDA or USDA-accredited laboratories 
complete a form FV-249 for all lots of imported pistachios that fail to 
meet aflatoxin requirements and submit the form to USDA, CBP, and the 
importer who requested the aflatoxin test. The regulations also require 
that importers of pistachios complete and submit to USDA and CBP a form 
FV-251 for lots that fail to meet aflatoxin requirements when the lots 
are reworked for further testing or, when not reworked, are exported, 
sold for non-human consumption, or destroyed.
    Under this proposal, the form FV-249 would be submitted 
electronically, and the regulations would require the reporting of all 
aflatoxin test results (both ``meets'' and ``fails'') to USDA. AMS has 
confirmed with CBP that it does not need to receive the FV-249, and 
importers already receive ``meets'' and ``fails'' test results from the 
laboratories in the form of aflatoxin test certificates; therefore, the 
laboratories would electronically submit this form only to USDA. 
Importers would no longer be required to submit the form FV-251 because 
AMS has determined that information provided on this form is available 
from other sources. AMS will consider in the future if the FV-251 
should be extracted from the information collection. Providing for 
electronic submission of the FV-249 and removing the requirement that 
importers submit the FV-251 would support the ITDS initiative by 
streamlining processes and reducing the burden on America's import 
trade without compromising AMS's ability to ensure compliance with its 
import regulations.
    This proposed rule would also make other changes to the fruit, 
vegetable, and specialty crop import regulations in Sec. Sec.  944.400, 
944.401, 980.1, 980.117, 980.212, 999.1, 999.100, 999.300, and 999.400. 
These changes, which include updating agency and program names and 
contact information, and removing or updating other information that is 
out of date, would help ensure the import regulations contain accurate 
information and align with the ITDS objective of streamlining import 
processes for the trade.

Certification by Canadian Food Inspection Agency (CFIA)

    In part 980, the following sections prescribe the grade, size, 
quality, and maturity requirements for imported vegetable commodities 
that are regulated under section 8e of the Act: Sec.  980.1(b) for 
potatoes, Sec.  980.117(b) for onions, and Sec.  980.212(b) for 
tomatoes. Further, the following sections in part 980 specify the 
governmental inspection services that are designated to certify that 
grade, size, quality, and maturity requirements of the commodities have 
been met: Sec.  980.1(f) for potatoes, Sec.  980.117(e) for onions, and 
Sec.  980.212(e) for tomatoes. Part 980 also specifies that an 
inspection certificate issued by a designated government inspection 
service certifying that the potatoes, onions, and tomatoes meet the 
import requirements is required for all imports (Sec. Sec.  980.1(g), 
980.117(f), and 980.212(f) for potatoes, onions, and tomatoes, 
respectively).
    As noted above, the vegetable import regulations specify those 
domestic and foreign government inspection services that are designated 
to certify that imported potatoes, onions, and tomatoes meet grade, 
size, quality, and maturity requirements. Currently, the only foreign 
designated governmental inspection service is the Canadian Food 
Inspection Agency (CFIA).
    When importers have potatoes, onions, or tomatoes inspected in 
Canada prior to import into the United States, an inspection 
certificate is provided to the importer that certifies that the 
commodity meets section 8e import requirements. These certificates are 
comprised of various formats, including a Certificate of Inspection for 
Fresh Fruits and Vegetables--Shipping Point (also known as E2 and E3 
forms) and an Export Document for C-PIQ Establishments--Fresh Fruits 
and Vegetables (also known as a C-PIQ form). CFIA issues C-PIQ forms to 
C-PIQ establishments that meet the requirements defined within the CFIA 
quality assurance program known as ``Canadian Partners in Quality'' (C-
PIQ). The C-PIQ program is applicable to potatoes only (i.e., not 
onions or tomatoes). All of these certificates contain similar 
information as required by the vegetable import regulations, including 
the date of inspection, the name of the shipper, the commodity 
inspected, the quantity of the commodity covered by the certificate, 
and a statement indicating that the commodity meets the import 
requirements of section 8e of the Act.
    Currently, Canadian certificates that certify that potatoes, 
onions, and tomatoes meet 8e requirements are presented to the United 
States Customs and Border Protection (CBP) at the United States/
Canadian border, prior to entry into the United States. AMS conducts 
periodic reviews at CFIA offices and potato handling facilities in 
various Canadian provinces during which inspectors from AMS's Specialty 
Crops Inspection (SCI) Division, as well as Compliance and Enforcement 
Specialists from AMS's Marketing Order and Agreement Division (MOAD), 
observe inspection processes and review records at traditional shipping 
points and maintained under the C-PIQ program for potatoes exported 
from Canada to the United States. However, importers are not currently 
required to submit copies of the Canadian E2, E3, or C-PIQ certificates 
or otherwise provide proof of Canadian inspection to AMS.

Electronic Entry of Canadian Certificate Information in the Automated 
Commercial Environment (ACE)

    The United States Customs and Border Protection's (CBP) Automated 
Commercial Environment (ACE) is the primary system through which the 
global trade community electronically files information about imports 
and exports so that admissibility into the United States may be 
determined and government agencies may monitor compliance. ACE is the 
platform that provides a ``single window'' through which the global 
trade community electronically files shipment data, instead of 
completing or submitting paper-based forms to report the same 
information to different government agencies. This ``single window'' 
concept is a key component of the International Trade Data System 
(ITDS), a 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; 79 FR 10657). ITDS is designed to greatly 
reduce the burden on America's import and export trade while still 
providing information to government agencies that is necessary for the 
United States to ensure compliance with its laws.
    In conjunction with the full implementation of the ITDS ``single 
window,'' CBP is requiring that government agencies participating in 
the ITDS project, including AMS, ensure that regulations provide for 
the electronic entry of import and/or export information.
    AMS has developed and deployed a new automated system called the

[[Page 87851]]

Compliance and Enforcement Management System (CEMS) that interfaces 
with CBP's ACE system in support of ITDS. CEMS electronically links 
with the ACE system to create a ``pipeline'' through which data is 
transmitted between MOAD and CBP. CEMS validates information 
electronically entered by importers in ACE and transmits messages to 
CBP about whether a shipment may be released for importation into the 
United States.
    AMS has determined that the changes to the vegetable import 
regulations proposed in this rule meet CBP's requirements for ITDS by 
providing for the electronic entry in ACE of certification information 
for potatoes, onions, and tomatoes inspected by CFIA prior to import 
into the United States. This data would be transmitted from CBP's ACE 
to AMS's CEMS, where it would be electronically validated. Upon 
validation, CEMS would transmit an electronic message back to ACE 
indicating the shipment is cleared for import into the United States. 
The proposed changes to the vegetable import regulations would automate 
and streamline the entry and reporting process for importers while 
enhancing AMS's ability to ensure compliance with its import 
regulations.
    These proposed changes would also provide an option for importers 
to provide AMS with a paper copy of a CFIA certificate, via email, 
mail, or facsimile, in the event an importer is unable to 
electronically provide the required certificate number and image in 
ACE.

Imported Pistachio Regulation Reporting Changes

    The pistachio import regulations provide that each pistachio sample 
drawn and prepared for aflatoxin testing by a USDA-authorized inspector 
be submitted to a USDA or USDA-accredited laboratory for analysis 
(Sec.  999.600(e)). Lots that fail to meet the aflatoxin requirements 
currently must be reported by the laboratories to USDA, CBP, and the 
importer using an Imported Pistachios--Failed Lot Notification report 
(form FV-249), pursuant to Sec. Sec.  999.600(e), (g) and (h). 
Importers are also currently required to report the disposition of 
reworked and failed lots to USDA and CBP using an Imported Pistachios--
Rework and Failed Lot Disposition report (form FV-251), pursuant to 
Sec. Sec.  999.600(g) and (h). Both the FV-249 and FV-251 are paper 
forms.
    Section 999.600(f) provides that the laboratories provide an 
aflatoxin inspection certificate to importers that contains, among 
other things, a statement as to whether the lot meets or fails the 
import requirements under section 8e of the Act. Thus, all aflatoxin 
test results are provided to importers by the testing laboratories.
    Section 999.600 would be revised by changing the reporting 
requirements for laboratories (form FV-249) and importers (form FV-
251). USDA and USDA-accredited laboratories currently submit a paper 
form FV-249 to USDA, CBP, and an importer when a lot fails to meet the 
aflatoxin requirements of the pistachio import regulations. The testing 
laboratories are now meeting this requirement and are also voluntarily 
providing information to USDA about lots that meet aflatoxin 
requirements; in other words, the laboratories are providing all 
aflatoxin test results to USDA, not just failed lot notifications. 
Importers currently complete and submit to USDA and CBP a paper form 
FV-251 to report the disposition of reworked or failed lots.
    To streamline the regulations and eliminate the paper-based 
reporting process, AMS would convert the existing FV-249 to an 
electronic format. The electronic format would provide for the 
laboratories to report all aflatoxin test results to AMS, in line with 
the current practice. USDA's Science and Technology Program approves 
and accredits laboratories to perform chemical analyses of pistachios 
for aflatoxin content. The regulations would require accredited 
laboratories to submit aflatoxin test results to AMS using the 
electronic form FV-249, and USDA laboratories would also use the 
electronic form FV-249 to submit test results to AMS. AMS has 
determined that CBP does not require this test result information, and 
the laboratories already provide importers with certificates for all 
aflatoxin tests; therefore, the laboratories would be required to 
electronically submit the FV-249 to only USDA and not to CBP or 
importers.
    In addition to the changes to laboratory-reporting requirements, 
Sec.  999.600 would be revised to remove the requirement that importers 
report the disposition of reworked or failed lots to USDA and CBP using 
the Imported Pistachios--Rework and Failed Lot Disposition report (form 
FV-251). When this form was included in a proposed rule published in 
the Federal Register on October 11, 2011 (76 FR 65411) and implemented 
in a final rule published in the Federal Register on August 27, 2012 
(77 FR 51686), AMS believed that the most effective way to ensure 
compliance with the rework and failed lot disposition requirements of 
the pistachio import regulations was to require importers to submit the 
form FV-251 with details about reworked, exported, sold for non-human 
consumption, or destroyed lots. Since that time, however, AMS has 
determined that the information provided on this form is available from 
other sources (for example, destruction information is available from 
AMS's Specialty Crops Inspection Division) or requires additional 
follow up with an importer. The requirements for rework and final 
disposition of failed lots is not changing; only the reporting 
associated with these requirements is changing. The proposal to remove 
the requirement that importers use the paper form FV-251 would support 
the full implementation of ITDS by streamlining processes and reducing 
the burden on importers while allowing AMS to continue to ensure 
compliance with import regulations. AMS will consider proposing removal 
of the form FV-251 from the information collection during the next 
renewal of the forms package.
    Accordingly, Sec. Sec.  999.600(e), (g), and (h) would be revised 
to reflect the changes to reporting noted above.

Other Changes

    To further ensure that the fruit, vegetable, and specialty crop 
import regulations provide accurate information to the import trade and 
in furtherance of streamlining processes in support of ITDS, the 
following changes would be made:
    Contact information for inspection offices and ports of entry, and 
references to importers making various advance arrangements for 
inspection services would be revised or removed from the fruit import 
regulations at Sec. Sec.  944.400(a) (designated inspection services 
and procedures), 944.401(c) (olives); the vegetable import regulations 
at Sec. Sec.  980.1(g)(1)(ii) (potatoes), 980.117(f)(3) (onions); 
980.212(f)(3) (tomatoes); and in the specialty crop regulations at 
Sec. Sec.  999.1(c)(1) (dates), 999.100(c)(4) (walnuts), 999.300(c)(3) 
(raisins), and 999.400(c)(2) (filberts). The contact information for 
individual inspection offices and ports of entry is currently out of 
date in many of these sections. Under ITDS, importers will 
electronically file initial requests for inspection (SC-357, Initial 
Inspection Request for Regulated Import Commodities), which will alert 
the appropriate inspection office and CBP that a regulated commodity 
will be arriving that will require inspection at the port of entry or 
at another location. This electronic process will provide the needed 
advance notice to the inspection service. AMS's Specialty Crops

[[Page 87852]]

Inspection (SCI) Division intends to amend its inspection application 
regulations (7 CFR parts 51 and 52) to provide for the electronic 
filing of the initial request for inspection, thereby meeting CBP's 
requirement that the regulations of agencies participating in ITDS be 
revised to provide for electronic filing of shipment entry data. This 
proposed rule would add contact information (address, telephone number, 
and facsimile numbers) for the main SCI office in Washington, DC, in 
the event importers need any information about inspection services. 
This change would also make the fruit, vegetable, and specialty crop 
regulations more current and consistent.
    Proposed administrative changes would include updating the USDA 
agency and program names in Sec. Sec.  944.400(a) (designated 
inspection services and procedures) and 944.401(a)(5) and (c) (olives) 
in the fruit import regulations; 980.1(f) (potatoes), 980.117(e) 
(onions), and 980.212(e) (tomatoes) in the vegetable import 
regulations; and 999.600(h) (pistachios) in the specialty crop import 
regulations. Additionally, the word ``nectarines'' would be removed 
from Sec.  944.400(a) (designated inspection services and procedures) 
of the fruit import regulations. Nectarines were regulated in the past 
but are not currently regulated under the fruit import regulations and 
should not, therefore, be listed in this section.

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 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.
    Small agricultural service firms, which includes importers, are 
defined by the Small Business Administration (SBA) as those having 
annual receipts of less than $7,500,000 (13 CFR 121.201).
    This proposed action would change the import regulations for 
potatoes, onions, and tomatoes by requiring importers to enter the 
certificate number and upload an electronic image of the certificate 
for those shipments certified by CFIA as meeting 8e requirements into 
CBP's ACE system, for transmission to AMS, prior to import into the 
United States. If an importer is unable to provide this information 
electronically in ACE, a copy of the certificate would have to 
accompany the shipment at entry into the United States, and the 
importer would also have to submit a copy of the certificate to AMS via 
email, mail, or facsimile.
    Based on 2015 information from CBP, USDA estimates there are 25 
importers of potatoes from Canada, 13 importers of onions from Canada, 
and 12 importers of tomatoes from Canada. Although USDA has limited 
access to data about the business sizes of these importers, it is 
likely that the majority may be classified as small entities.
    According to data from CBP and USDA's Foreign Agricultural Service 
(FAS), USDA estimates that in 2015, there were 894,945,959 pounds of 
potatoes, onions, and tomatoes that were subject to 8e regulations that 
were imported from Canada into the U.S. The table below provides a 
breakdown of this information by commodity:

   Vegetables Regulated Under Section 8e--Imported From Canada in 2015
------------------------------------------------------------------------
                                         Number  of        Weight  in
              Commodity                    entries           pounds
------------------------------------------------------------------------
Potatoes............................            20,146       728,594,707
Onions..............................            13,591       158,918,237
Tomatoes............................               634         7,333,015
------------------------------------------------------------------------

    Currently, importers of Canadian potatoes, onions, and tomatoes 
that are certified by CFIA as meeting 8e requirements are not required 
to provide AMS with proof of this certification. The proposed change to 
require electronic entry of a CFIA certificate number and an electronic 
copy of the certificate through ACE would provide importers with an 
automated method of submitting this information to AMS at the same time 
they are electronically entering information about the shipment as 
required by other agencies, such as CBP. This electronic filing option 
should streamline business operations, both for importers of these 
commodities and for USDA, which would use the electronically submitted 
data to monitor compliance with 8e regulations. Electronic submission 
of this certificate information would meet CBP's requirement to ensure 
that the regulations of those government agencies participating in the 
ITDS project, such as AMS, provide for the electronic submission of 
required data. This change would create a minimal burden on importers 
while providing AMS with the ability to properly monitor imported 
vegetable shipments for compliance with the import regulations.
    In the event an importer would be unable to electronically provide 
the required certificate number and electronic copy of the certificate 
in ACE, this proposed change would require that a paper copy of the 
CFIA certificate accompany the shipment at entry and would also provide 
for the submission of a copy of the certificate to AMS via email, mail, 
or facsimile.
    This proposed action would also change the pistachio import 
regulations by modifying the reporting requirements for USDA or USDA-
accredited laboratories that perform chemical analyses of aflatoxin 
levels in imported pistachios. The regulations would require these 
laboratories to submit all aflatoxin test results to USDA instead of 
only the results of failed lots; however, the laboratories are already 
voluntarily providing all test results to AMS. AMS reports that most of 
the aflatoxin chemical analyses are performed by the USDA Science and 
Technology Program laboratory in Blakely, Georgia, which is not subject 
to RFA analysis.
    There are currently nine USDA-accredited laboratories that perform 
chemical analyses on aflatoxin levels for imported pistachios to 
determine if they meet 8e requirements. Although USDA does not have 
access to data about the business sizes of these laboratories, it is 
likely that the majority may be classified as large entities.
    USDA's Foreign Agricultural Service (FAS) estimates that in 2015, 
2,743,823 pounds of pistachios (shelled and inshell) were imported into 
the United States. According to FAS data, most of those pistachios were 
imported from Turkey, with additional imported pistachios coming from 
other countries that include Canada, Italy, the United Kingdom, Greece, 
Thailand, and Germany. For those pistachios imported in 2015, AMS 
received 8 failed lot

[[Page 87853]]

notifications from two of the USDA-accredited laboratories, as required 
by the regulations, and voluntarily received notifications from four of 
the USDA-accredited laboratories that 54 lots met 8e aflatoxin level 
requirements. The total test results received in 2015 (62) divided 
among the nine USDA-accredited labs would average 7 test results per 
year for each USDA-accredited laboratory. Because the laboratories 
currently provide AMS with both ``meets'' and ``fails'' aflatoxin test 
results, there is not expected to be any additional cost as a result of 
this action.
    Regarding alternatives to this action, AMS determined that these 
changes to the regulations are needed to comply with the ITDS mandate 
and to provide AMS with information it requires to ensure compliance 
with its regulations. As noted earlier, CBP is requiring all government 
agencies who are partnering with CBP on the ITDS initiative (including 
AMS) to update their regulations to provide for the electronic entry of 
import and export shipment data. Providing for the entry of certificate 
information in ACE for potatoes, onions, and tomatoes imported from 
Canada that have been certified by CFIA as meeting 8e requirements 
enhances AMS's ability to monitor compliance while also meeting the 
objectives of ITDS to streamline processes for the import trade. In 
addition, changing the pistachio regulations by revising the reporting 
requirements would streamline the regulations and reduce the burden on 
the trade. The other changes proposed in this action would also provide 
the import trade with accurate information.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), AMS considered the information collection requirements 
necessary for importers to electronically submit CFIA's inspection 
certificates and certificate numbers, and it was deemed not to place an 
additional paperwork burden on importers. No changes in the information 
collection requirements for the vegetable import regulations are 
necessary as a result of this action. Should any changes become 
necessary, they would be submitted to OMB for approval.
    The information collection requirements for the form FV-249 (for 
imported pistachios) have been previously approved by OMB and assigned 
OMB No. 0581-0215 (Pistachios Grown in California, Arizona, and New 
Mexico). As noted earlier, form FV-249 is contained within the OMB 
information collection for the domestic pistachio marketing order but 
is used strictly for imported pistachios.
    AMS has submitted a request to OMB to make changes to the 
information collection currently approved under OMB No. 0581-0215, 
which was last renewed in 2014, by providing for the electronic 
submission of form FV-249; renaming the existing form Notification of 
Aflatoxin Levels to reflect the inclusion of all aflatoxin test 
results; and relaxing the submission requirements so that laboratories 
submit the form to only USDA, eliminating the need to also submit the 
form to CBP and importers. There are currently nine USDA-accredited 
laboratories that could potentially submit all aflatoxin test results 
to USDA instead of only failed test results using the FV-249. As a 
result, the number of respondents is changing from 7 to 9, the 
estimated number of responses per respondent is increasing from 4 to 7, 
and the annual burden hours is increasing from 5.6 hours to 12.6 hours. 
These changes have been included in AMS's request to OMB to revise this 
information collection.
    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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this proposed rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Rick Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. Thirty days is deemed appropriate because (1) 
the import industry is fully aware of ITDS and its goal to streamline 
and automate paper-based processes and has attended annual ITDS Trade 
Support Network plenary sessions conducted by the U.S. government over 
the past few years; (2) USDA and USDA-accredited laboratories are 
already voluntarily providing all imported pistachio aflatoxin test 
results to USDA; and (3) CPB is requiring the timely update of import 
and export regulations to meet the ITDS electronic data submission 
requirement. All written comments timely received will be considered 
before a final determination is made on this matter.

List of Subjects

7 CFR Part 944

    Avocados, Food grades and standards, Grapefruit, Grapes, Imports, 
Kiwifruit, 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, 
Pistachios, Prunes, Raisins, Reporting and recordkeeping requirements, 
Walnuts.

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

0
1. The authority citation for 7 CFR parts 944, 980, and 999 continues 
to read as follows:

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

PART 944--FRUITS; IMPORT REGULATIONS

0
2. Revise Sec.  944.400 to read as follows:


Sec.  944.400   Designated inspection services and procedure for 
obtaining inspection and certification of imported avocados, 
grapefruit, kiwifruit, oranges, prune variety plums (fresh prunes), and 
table grapes regulated under section 8e of the Agricultural Marketing 
Agreement Act of 1937, as amended.

    (a) The Federal or Federal-State Inspection Service, Specialty 
Crops Program, Agricultural Marketing Service, United States Department 
of Agriculture is hereby designated as the governmental inspection 
service for the purpose of certifying the grade, size, quality, and 
maturity of avocados, grapefruit, oranges, prune variety plums (fresh 
prunes), and table grapes that are imported into the United States. 
Agriculture and Agri-Food Canada is also designated as a governmental 
inspection service for the purpose of certifying grade, size, quality 
and maturity of prune variety plums (fresh prunes) only. Inspection by 
the Federal or Federal-State Inspection Service or the Agriculture and 
Agri-Food Canada, with appropriate evidence thereof in the form of an 
official inspection certificate, issued by the respective services, 
applicable to the particular shipment of the specified fruit, is 
required on all imports. Inspection and certification by the Federal or 
Federal-State Inspection Service will be available upon application in 
accordance with the Regulations Governing Inspection, Certification and 
Standards for Fresh Fruits, Vegetables, and Other Products (7 CFR part 
51). For further information

[[Page 87854]]

about Federal or Federal-State inspection services, contact Specialty 
Crops Inspection Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW., STOP 0240, Washington, DC 20250-0237; 
telephone (202) 720-5870; fax (202) 720-0393.
* * * * *
0
3. In Sec.  944.401, revise paragraphs (a)(5) and (c) to read as 
follows:


Sec.  944.401   Olive Regulation 1.

    (a) * * *
    (5) USDA Inspector means an inspector of the Specialty Crops 
Inspection Division, Specialty Crops Program, Agricultural Marketing 
Service, U.S. Department of Agriculture, or any other duly authorized 
employee of the Department.
* * * * *
    (c) The Specialty Crops Inspection Division, Specialty Crops 
Program, Agricultural Marketing Service, U.S. Department of 
Agriculture, is hereby designated as the governmental inspection 
service for the purpose of certifying the grade and size of processed 
olives from imported bulk lots for use in canned ripe olives and the 
grade and size of imported canned ripe olives. Inspection by said 
inspection service with appropriate evidence thereof in the form of an 
official inspection certificate, issued by the service and applicable 
to the particular lot of olives, is required. With respect to imported 
bulk olives, inspection and certification shall be completed prior to 
use as packaged ripe olives. With respect to canned ripe olives, 
inspection and certification shall be completed prior to importation. 
Any lot of olives which fails to meet the import requirements and is 
not being imported for purposes of contribution to a charitable 
organization or processing into oil may be exported or disposed of 
under the supervision of the Specialty Crops Inspection Division, 
Specialty Crops Program, AMS, USDA, with the cost of certifying the 
disposal borne by the importer. Such inspection and certification 
services will be available, upon application, in accordance with the 
applicable regulations governing the inspection and certification of 
Processed Fruits and Vegetables, Processed Products Thereof, and 
Certain Other Processed Food Products (part 52 of this title). * For 
questions about inspection services or for further assistance, contact: 
Specialty Crops Inspection Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW, Room 1536-S, STOP 0240, Washington, 
DC 20250-0237; telephone (202) 720-5870; fax (202) 720-0393.
* * * * *

PART 980--VEGETABLES; IMPORT REGULATIONS

0
4. In Sec.  980.1, revise paragraphs (f), (g)(1)(i), and (g)(1)(ii) to 
read as follows:


Sec.  980.1   Import regulations; Irish potatoes.

* * * * *
    (f) Designation of governmental inspection services. The Federal or 
Federal-State Inspection Service, Specialty Crops Program, Agricultural 
Marketing Service, U.S. Department of Agriculture, and the Food of 
Plant Origin Division, Plant Products Directorate, Canadian Food 
Inspection Agency, are hereby designated as governmental inspection 
services for the purpose of certifying the grade, size, quality, and 
maturity of Irish potatoes that are imported, or to be imported, into 
the United States under the provisions of Sec.  608e of the Act.
    (g) * * *
    (1)(i) Inspection and certification by the Federal or Federal-State 
Inspection Service will be available and performed in accordance with 
the rules and regulations governing certification of fresh fruits, 
vegetables, and other products (part 51 of this title), and each lot 
shall be made available and accessible for inspection as provided 
therein. Cost of inspection and certification shall be borne by the 
applicant. For questions about inspection services or for further 
assistance, contact: Specialty Crops Inspection Division, Specialty 
Crops Program, AMS, USDA, 1400 Independence Avenue SW., Room 1536-S, 
STOP 0240, Washington, DC 20250-0237; telephone (202) 720-5870; fax 
(202) 720-0393.
    (ii) If certification is provided by a designated governmental 
inspection service other than the Federal or Federal-State Inspection 
Service, in accordance with 980.1(f), an importer shall electronically 
transmit to USDA, prior to entry, the certificate number and an 
electronic image of the certificate using the U.S. Customs and Border 
Protection's Automated Commercial Environment system. If this 
information is not provided electronically prior to entry, a paper copy 
of the certificate must accompany the shipment at the time of entry, 
and a copy of the certificate must be submitted by email, mail, or fax 
to the Marketing Order and Agreement Division, Specialty Crops 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.
* * * * *
0
5. In Sec.  980.117, revise paragraphs (e), (f)(2), and (f)(3) to read 
as follows:


Sec.  980.117   Import regulations; onions.

* * * * *
    (e) Designation of governmental inspection service. The Federal or 
Federal-State Inspection Service, Specialty Crops Program, Agricultural 
Marketing Service, U.S. Department of Agriculture, and the Food of 
Plant Origin Division, Plant Products Directorate, Canadian Food 
Inspection Agency, are hereby designated as governmental inspection 
services for the purpose of certifying the grade, size, quality, and 
maturity of onions that are imported, or to be imported, into the 
United States under the provisions of section 8e of the Act.
    (f) * * *
    (2) Inspection and certification by the Federal or Federal-State 
Inspection Service will be available and performed in accordance with 
the rules and regulations governing certification of fresh fruits, 
vegetables and other products (7 CFR part 51). Each lot shall be made 
available and accessible for inspection as provided therein. Cost of 
inspection and certification shall be borne by the applicant. For 
questions about inspection services or for further assistance, contact: 
Specialty Crops Inspection Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW, Room 1536-S, STOP 0240, Washington, 
DC 20250-0237; telephone (202) 720-5870; fax (202) 720-0393.
    (3) If certification is provided by a designated governmental 
inspection service other than the Federal or Federal-State Inspection 
Service, in accordance with 980.117(e), an importer shall 
electronically transmit to USDA, prior to entry, the certificate number 
and an electronic image of the certificate using the U.S. Customs and 
Border Protection's Automated Commercial Environment system. If this 
information is not provided electronically prior to entry, a paper copy 
of the certificate must accompany the shipment at the time of entry, 
and a copy of the certificate must be submitted by email, mail, or fax 
to the Marketing Order and Agreement Division, Specialty Crops 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.
* * * * *
0
6. In Sec.  980.212, revise paragraphs (e), (f)(2), and (f)(3) to read 
as follows:

[[Page 87855]]

Sec.  980.212   Import regulations; tomatoes.

* * * * *
    (e) Designation of governmental inspection service. The Federal or 
Federal-State Inspection Service, Specialty Crops Program, Agricultural 
Marketing Service, U.S. Department of Agriculture, and the Food of 
Plant Origin Division, Plant Products Directorate, Canadian Food 
Inspection Agency, are hereby designated as governmental inspection 
services for the purpose of certifying the grade, size, quality, and 
maturity of tomatoes that are imported, or to be imported, into the 
United States under the provisions of section 8e of the Act.
    (f) * * *
    (2) Inspection and certification by the Federal or Federal-State 
Inspection Service will be available and performed in accordance with 
the rules and regulations governing certification of fresh fruits, 
vegetables and other products (7 CFR part 51). Each lot shall be made 
available and accessible for inspection as provided therein. Cost of 
inspection and certification shall be borne by the applicant. For 
questions about inspection services or for further assistance, contact: 
Specialty Crops Inspection Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW., Room 1536-S, STOP 0240, Washington, 
DC 20250-0237; telephone (202) 720-5870; fax (202) 720-0393.
    (3) If certification is provided by a designated governmental 
inspection service other than the Federal or Federal-State Inspection 
Service, in accordance with 980.212(e), an importer shall 
electronically transmit to USDA, prior to entry, the certificate number 
and an electronic image of the certificate using the U.S. Customs and 
Border Protection's Automated Commercial Environment system. If this 
information is not provided electronically prior to entry, a paper copy 
of the certificate must accompany the shipment at the time of entry, 
and a copy of the certificate must be submitted by email, mail, or fax 
to the Marketing Order and Agreement Division, Specialty Crops 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


Sec.  999.100   [Amended].

0
7. In Sec.  999.100, amend paragraph (c)(4) by removing the last 
sentence.
0
8. In Sec.  999.300, revise paragraph (c)(3) to read as follows:


Sec.  999.300   Regulation governing importation of raisins.

* * * * *
    (c) * * *
    (3) Whenever raisins are offered for inspection, the applicant 
shall furnish any labor and pay any costs incurred in moving and 
opening containers as may be necessary for proper sampling and 
inspection. The applicant shall also furnish the USDA inspector the 
entry number and such other identifying information for each lot as the 
inspector may request.
* * * * *
0
9. In Sec.  999.400, revise paragraph (c)(2) to read as follows:


Sec.  999.400   Regulation governing the importation of filberts.

* * * * *
    (c) * * *
    (2) Inspection. Inspection shall be performed by USDA inspectors in 
accordance with the Regulations Governing the Inspection and 
Certification of Fresh Fruits and Vegetables and Related Products (7 
CFR part 51). The cost of each such inspection and related 
certification shall be borne by the applicant. Whenever filberts are 
offered for inspection, the applicant shall furnish any labor and pay 
any costs incurred in moving and opening containers as may be necessary 
for proper sampling and inspection. The applicant shall also furnish 
the USDA inspector the entry number and such other identifying 
information for each lot as the inspector may request. Inspection must 
be completed prior to the importation of filberts.
* * * * *
0
10. Amend Sec.  999.600 by:
0
a. Revising paragraphs (e)(2) and (e)(3);
0
b. Revising paragraph (g);
0
c. Redesignating paragraph (h)(1) as (h) and revising newly 
redesignated paragraph (h); and
0
d. Removing paragraph (h)(2).
    The revisions to read as follows:


Sec.  999.600   Regulation governing the importation of pistachios.

* * * * *
    (e) * * *
    (2) Lots that require a single test sample will be certified as 
``negative'' on the aflatoxin inspection certificate if the sample has 
an aflatoxin level at or below 15 ppb. If the aflatoxin level is above 
15 ppb, the lot fails. The laboratory shall electronically submit the 
results to USDA (Form FV-249) as described in paragraph (h) of this 
section.
    (3) Lots that require two test samples will be certified as 
``negative'' on the aflatoxin inspection certificate if Test Sample #1 
has an aflatoxin level at or below 10 ppb. If the aflatoxin level of 
Test Sample #1 is above 20 ppb, the lot fails and the laboratory shall 
electronically submit the results to USDA (Form FV-249) as described in 
paragraph (h) of this section. If the aflatoxin level of Test Sample #1 
is above 10 ppb and at or below 20 ppb, the laboratory may, at the 
importer's discretion, analyze Test Sample #2 and average the test 
results of Test Samples #1 and #2. Alternately, the importer may elect 
to withdraw the lot from testing, rework the lot, and resubmit it for 
testing after reworking. If the importer directs the laboratory to 
proceed with the analysis of Test Sample #2, a lot will be certified as 
negative to aflatoxin and the laboratory shall issue an aflatoxin 
inspection certificate if the averaged result of Test Samples #1 and #2 
is at or below 15 ppb. If the average aflatoxin level of Test Samples 
#1 and #2 is above 15 ppb, the lot fails. The laboratory shall 
electronically submit the results to USDA (Form FV-249) as described in 
paragraph (h) of this section.
* * * * *
    (g) Failed lots/rework procedure. Any lot or portion thereof that 
fails to meet the import requirements prior to or after reconditioning 
may be exported, sold for non-human consumption, or disposed of under 
the supervision the Federal or Federal-State Inspection Programs, with 
the costs of certifying the disposal of such lot paid by the importer.
    (1) Inshell rework procedure for aflatoxin. If inshell rework is 
selected as a remedy to meet the aflatoxin requirements of this part, 
then 100 percent of the product within that lot shall be removed from 
the bulk and/or retail packaging containers and reworked to remove the 
portion of the lot that caused the failure. Reworking shall consist of 
mechanical, electronic, or manual procedures normally used in the 
handling of pistachios. The reworked lot shall be sampled and tested 
for aflatoxin as specified in paragraphs (d) and (e) of this section, 
except that the lot sample size and the test sample size shall be 
doubled. If, after the lot has been reworked and tested, it fails the 
aflatoxin test for a second time, the lot may be shelled and the 
kernels reworked, sampled, and tested in the manner specified for an 
original lot of kernels, or the failed lot may be exported, used for 
non-human consumption, or otherwise disposed of.

[[Page 87856]]

    (2) Kernel rework procedure for aflatoxin. If pistachio kernel 
rework is selected as a remedy to meet the aflatoxin requirements of 
this part, then 100 percent of the product within that lot shall be 
removed from the bulk and/or retail packaging containers and reworked 
to remove the portion of the lot that caused the failure. Reworking 
shall consist of mechanical, electronic, or manual procedures normally 
used in the handling of pistachios. The reworked lot shall be sampled 
and tested for aflatoxin as specified in paragraphs (d) and (e) of this 
section.
    (3) Failed lot reporting. If a lot fails to meet the aflatoxin 
requirements of this part, the testing laboratory shall electronically 
submit the results to USDA (Form FV-249) as described in paragraph (h) 
of this section within 10 working days of the test failure. This 
information must be submitted each time a lot fails aflatoxin testing.
    (h) Reports and Recordkeeping. Form FV-249, Notification of 
Aflatoxin Levels. Each USDA or USDA-accredited laboratory shall notify 
the Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA of all aflatoxin test results for all lots by electronically 
submitting this form within 10 days of testing.
* * * * *

    Dated: November 29, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-29016 Filed 12-5-16; 8:45 am]
BILLING CODE P