83 FR 14771 - Mango Promotion, Research and Information Order; Amendment To Include Frozen Mangos

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 67 (April 6, 2018)

Page Range		14771-14781
FR Document		2018-06968

This proposed rule invites comments on amending the Agricultural Marketing Service's (AMS) regulations regarding a fresh mango national research and promotion program to include frozen mangos as a covered commodity. Additionally, this proposal announces AMS' intent to request approval by the Office of Management and Budget (OMB) of new information collection requirements necessary to include frozen mangos under the program.

Federal Register, Volume 83 Issue 67 (Friday, April 6, 2018)

[Federal Register Volume 83, Number 67 (Friday, April 6, 2018)]
[Proposed Rules]
[Pages 14771-14781]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-06968]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1206

[Document No. AMS-SC-17-0002]

Mango Promotion, Research and Information Order; Amendment To
Include Frozen Mangos

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on amending the
Agricultural Marketing Service's (AMS) regulations regarding a fresh
mango national research and promotion program to include frozen mangos
as a covered commodity. Additionally, this proposal announces AMS'
intent to request approval by the Office of Management and Budget (OMB)
of new information collection requirements necessary to include frozen
mangos under the program.

DATES: Comments must be received by June 5, 2018. Pursuant to the
Paperwork Reduction Act, comments on the information collection burden
that would result from this proposal must be received by June 5, 2018.

ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments may be submitted on the internet at:
http://www.regulations.gov. Comments may also be sent to the Promotion
and Economics Division, Specialty Crops Program, AMS, USDA, Room 1406-
S, Stop 0244, 1400 Independence Avenue SW, Washington, DC 20250-0244;
facsimile: (202) 205-2800. All comments submitted should reference the
document number and page number of this issue of the Federal Register
and will be made available for public inspection, including name and
address,

[[Page 14772]]

if provided, in the above office during regular business hours or it
can be viewed at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Jeanette Palmer, Marketing Specialist,
Promotion and Economics Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, Room 1406-S, Stop 0244, Washington, DC
20250-0244; telephone: (202) 720-9915; facsimile: (202) 205-2800;
email: Jeanette.Palmer@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This proposal affecting 7 CFR part 1206 is
authorized under the Commodity Promotion, Research, and Information Act
of 1996 (1996 Act) (7 U.S.C. 7411-7425).

Executive Orders 12866, 13563, and 13771

Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules and promoting flexibility.
This action falls within a category of regulatory actions that the OMB
exempted from Executive Order 12866 review. Additionally, because this
rule does not meet the definition of a significant regulatory action it
does not trigger the requirements contained in Executive Order 13771.
See OMB's Memorandum titled ``Interim Guidance Implementing Section 2
of the Executive Order of January 30, 2017, titled ``Reducing
Regulation and Controlling Regulatory Costs'' (February 2, 2017).

Executive Order 13175

This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. The review reveals that this regulation would not
have substantial and direct effects on Tribal governments and would not
have significant Tribal implications.

Executive Order 12988

This proposal has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have a retroactive effect.
Section 524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not
affect or preempt any other Federal or State law authorizing promotion
or research relating to an agricultural commodity.
Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject
to an order may file a written petition with USDA stating that an
order, any provision of an order, or any obligation imposed in
connection with an order, is not established in accordance with the
law, and request a modification of an order or an exemption from an
order. Any petition filed challenging an order, any provision of an
order, or any obligation imposed in connection with an order, shall be
filed within two years after the effective date of an order, provision,
or obligation subject to challenge in the petition. The petitioner will
have the opportunity for a hearing on the petition. Thereafter, USDA
will issue a ruling on the petition. The Act provides that the district
court of the United States for any district in which the petitioner
resides or conducts business shall have the jurisdiction to review a
final ruling on the petition, if the petitioner files a complaint for
that purpose not later than 20 days after the date of the entry of
USDA's final ruling.

Background

This proposal invites comments on amending AMS' regulations
regarding a fresh mango national research and promotion program to
include frozen mangos as a covered commodity. The program is
administered by the Board with oversight by USDA. This proposal would
add definitions to the regulations for frozen mangos and foreign
processor of frozen mangos; expand the Board's membership from 18 to 21
by adding two importers of frozen mangos and one foreign processor of
frozen mangos; assess frozen mangos at a rate of $0.01 per pound;
exempt from assessment importers who import less than 200,000 pounds of
frozen mangos annually; and make clarifying and conforming changes to
other provisions of the program. This action was recommended by the
Board in November 2016 and would allow frozen mango stakeholders to
participate in a coordinated effort to maintain and expand the market
for frozen mangos. This proposal would also update the definition for
the term ``Board'' to reflect current practices. Additionally, this
proposal announces AMS' intent to request approval by the OMB of new
information collection requirements necessary to include frozen mangos
under the program.

Overview of Current Mango Program

The fresh mango research and promotion program took effect in
November 2004 (69 FR 59120) and assessment collection began in January
2005. Under the current program, assessments are collected from first
handlers and importers of 500,000 pounds or more of fresh mangos
annually. Assessments are used by the Board for projects designed to
maintain and expand existing markets for fresh mangos in the United
States.
Table 1 below shows the volume, value and price per pound for fresh
mango imports into the United States from 2005 through 2016.\1\ Imports
of fresh mangos have increased from about 575 million pounds in 2005
(valued at about $169 million) to almost 985 million pounds in 2016
(valued at $420 million). The price per pound for fresh mango imports
has increased from $0.29 in 2005 to $0.43 in 2016. In 2016, about 45
percent of the mangos imported into the United States were from Mexico,
22 percent were from Ecuador, and 18 percent were from Peru.
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\1\ https://apps.fas.usda.gov/gats/default.aspx.

Table 1--Volume, Value and Price/Pound for Fresh Mango Imports 2005-2016
----------------------------------------------------------------------------------------------------------------
Imports
Year (pounds) Value Price/ pound
(A) (B) (C)
----------------------------------------------------------------------------------------------------------------
2016............................................................ 984,554,112 $420,291,061 $0.43
2015............................................................ 861,384,226 401,260,865 0.47
2014............................................................ 827,108,732 372,298,536 0.45
2013............................................................ 766,477,061 296,953,865 0.39
2012............................................................ 706,690,535 248,410,276 0.35
2011............................................................ 810,404,105 284,744,341 0.35
2010............................................................ 706,690,535 248,410,276 0.35

[[Page 14773]]

2009............................................................ 633,703,998 217,448,516 0.34
2008............................................................ 655,825,602 210,884,833 0.32
2007............................................................ 650,918,405 196,062,305 0.30
2006............................................................ 644,579,545 209,650,045 0.33
2005............................................................ 575,057,320 169,117,171 0.29
----------------------------------------------------------------------------------------------------------------
Column C equals Column B divided by Column A.

Assessment revenue under the fresh mango program increased from
$3,293,825 \2\ in 2007 to $7,374,170 \3\ in 2016. In 2016, less than
one percent of the total assessments were from domestic handlers as the
vast majority of assessments were collected from importers. The
assessment rate under the current program for fresh mangos is $0.0075
per pound, pursuant to Sec. 1206.42(b).
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\2\ National Mango Promotion Board, Financial Statements Year
Ending December 31, 2007; Cross, Fernandez & Riley, LLP, Accountants
and Consultants; April 18, 2008; p. 13.
\3\ National Mango Promotion Board, Financial Statements and
Supplementary Information Years Ending December 31, 2016 and 2015;
BDO USA, LLP; March 15, 2017; p. 17.
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Since 2008, the Board has invested over $34 million of industry
funds to help increase mango consumption among U.S. consumers. The
Board has funded promotional programs with consumers, retailers and
restaurants within the United States. Retail stores of all sizes are
promoting mangos all year round, while restaurants all over the country
are offering their customers more mango dishes. Consumers are learning
more about mangos from multiple media sources and the demand for mangos
increased due to the Board's investments in educating consumers about
the health benefits of eating mangos.
There have been two economic studies done since the program's
inception in 2004 that assessed the effectiveness of the Board's
programs. The studies were conducted by Dr. Ronald Ward at the
University of Florida and published in 2011 and 2016 and are titled
``Estimating the Impact of the National Mango Board's Programs on the
U.S. Demand for Mangos.'' The 2016 study built on the 2011 study and
found that, for each dollar spent by the Board, approximately 11 to 12
times that was generated in sales. This return on investment indicates
the program's success in moving the demand for mangos. The studies are
available from USDA or the Board.

Frozen Mango Data

Table 2 below shows the volume, value and price per pound for
frozen mango imports into the United States from 2005 through 2016.\4\
Imports of frozen mangos have increased from almost 32 million pounds
in 2005 (valued at about $14 million) to almost 118 million pounds in
2016 (valued at $101 million). The price per pound for frozen mango
imports has increased from $0.46 in 2005 to $0.86 in 2016. In 2016,
over half of the imports of frozen mangos into the United States were
from Mexico, 33 percent were from Peru, and 2 percent were from
Guatemala.
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\4\ https://apps.fas.usda.gov/gats/default.aspx.

Table 2--Volume, Value and Price/Pound for Frozen Mango Imports 2005-2016
----------------------------------------------------------------------------------------------------------------
Imports
Year (pounds) Value Price/ pound
(A) (B) (C)
----------------------------------------------------------------------------------------------------------------
2016............................................................ 117,724,239 $101,204,418 $0.86
2015............................................................ 139,492,136 131,155,555 0.94
2014............................................................ 116,950,534 82,257,399 0.70
2013............................................................ 128,109,849 80,929,782 0.63
2012............................................................ 91,630,515 54,466,961 0.59
2011............................................................ 88,121,973 49,291,591 0.56
2010............................................................ 64,688,410 38,581,629 0.60
2009............................................................ 30,178,419 21,619,646 0.72
2008............................................................ 51,756,422 32,298,845 0.62
2007............................................................ 52,832,786 29,982,510 0.57
2006............................................................ 44,351,020 22,447,677 0.51
2005............................................................ 31,657,933 14,473,533 0.46
----------------------------------------------------------------------------------------------------------------
Column C equals Column B divided by Column A.

Board Recommendation

Because of the current program's success for the fresh mango
market, those who sell frozen mangos have been interested in becoming
part of the program. Mango producers often sell their mangos for use by
both the fresh and processed markets. Handlers and importers may
include all mango product categories in their businesses. However,
Board promotion efforts only support mangos for the fresh market.
Thus, the Board recommended amending part 1206 to include frozen
mangos. This would allow frozen mango stakeholders to participate in a
coordinated effort to maintain and expand the existing market for
frozen

[[Page 14774]]

mangos. These efforts would be accomplished through Board activities
including promotion, research, consumer information, education and
industry information. By collaborating within the existing national
mango promotion program, frozen mango stakeholders could provide to
consumers more information on the various uses and benefits of frozen
mangos in order to increase demand for the commodity.
Accordingly, several changes to part 1206 would be necessary to
expand the program to include frozen mangos. These changes are
described in the following paragraphs. Authority for the Board to
recommend changes to part 1206 is provided in Sec. 1206.36(m).

Definitions

Frozen Mangos

The term ``mangos'' is defined in Sec. 1206.11 to mean all fresh
fruit of Mangifera indica L. of the family Anacardiaceae. The term
would be revised to mean the fruit of Mangifera indica L. of the family
Anacardiaceae and would include both fresh and frozen mangos. Separate
definitions would be added in new paragraphs (a) and (b) of Sec.
1206.11 for fresh and frozen mangos, respectively. ``Fresh mangos''
would mean mangos in their fresh form. ``Frozen mangos'' would mean
mangos which are uncooked or cooked by steaming or boiling in water,
and then frozen, whether or not containing added sugar or other
sweetening agent.

Foreign Processor of Frozen Mangos

A definition would be added to part 1206 for ``foreign processor of
frozen mangos.'' Section 1206.8 which currently defines the term
``foreign producer'' would be redesignated as Sec. 1206.8a, and a new
Sec. 1206.8 would define the term ``foreign processor of frozen
mangos'' or ``foreign processor'' to mean any person: (a) Who is
engaged in the preparation of frozen mangos for market to the United
States and/or who owns or shares the ownership and risk of loss of such
mangos; and (b) who exports frozen mangos to the United States. As
described later in this document, a foreign processor would also have a
seat on the Board.
Additionally, Sec. Sec. 1206.6 and 1206.9 which define the terms
``first handler'' and ``importer,'' respectively, to mean entities that
handle or import 500,000 pounds or more of mangos annually would be
revised to remove the references to volume for the purpose of clarity.
There are other sections in part 1206 that apply to all first handlers
and importers regardless of the volume of mangos handled or imported
(i.e., Sec. 1206.61 regarding books and records and Sec. 1206.62
regarding confidential treatment thereof). Thus, the definition of the
terms ``first handler'' and ``importer'' would be revised to mean all
such entities, regardless of the volume of mangos handled or imported.
Other sections of part 1206 where the volume handled or imported is
relevant would specify the applicable figure.

Mango Board

Establishment and Membership

Section 1206.30(a) regarding establishment and membership of the
Board specifies that the Board be composed of 18 members--8 importers,
1 first handler, 2 domestic producers and 7 foreign producers. This
section would be revised to add three Board seats--two for importers of
frozen mangos and one for a foreign processor of frozen mangos.
The Board's rationale for recommending the addition of three seats
representing the frozen mango industry is based on a review of import
data. Table 3 below shows fresh and frozen mango import data for 2014-
2016.\5\ Fresh and frozen mango imports account for an average of 88
and 12 percent, respectively, of the total volume of imports for the 3-
year period.
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\5\ https://apps.fas.usda.gov/gats/default.aspx.

Table 3--Fresh and Frozen Mango Import Volumes 2014-2016
----------------------------------------------------------------------------------------------------------------
Fresh mango Frozen mango Total fresh and
Year imports imports frozen mango
(pounds) (pounds) imports (pounds)
----------------------------------------------------------------------------------------------------------------
2016.......................................................... 984,554,112 117,724,239 1,102,278,350
2015.......................................................... 861,384,226 139,492,136 1,000,876,362
2014.......................................................... 827,108,732 116,950,534 944,059,266
3-Year Average................................................ 891,015,690 124,722,303 1,015,737,993
Percent of Total.............................................. \1\ 88 \2\ 12 ................
----------------------------------------------------------------------------------------------------------------
\1\ This figure equals the 3-year average of 891,015,690 for fresh mango imports divided by the total mango
import figure of 1,015,737,993, multiplied by 100.
\2\ This figure equals the 3-year average of 124,722,303 for frozen mango imports divided by the total mango
import figure of 1,015,737,993, multiplied by 100.

Imports of fresh mangos account for over 99 percent of the
assessments under the current program. On the current 18-member Board,
15 out of the 18 seats (about 83 percent) are for importers and foreign
producers. If three Board seats are added to represent frozen mango
imports (two importers and one foreign processor), then 18 of the new
21-member Board (almost 87 percent) would represent foreign mangos.
Further, 3 of the 18 foreign-product seats (importers and foreign
producers) would represent frozen imported mangos (almost 17 percent)
and the remaining 15 seats (over 83 percent) would represent fresh
imported mangos. The Board's recommendation regarding frozen mango
representation on the Board is reasonable and Sec. 1206.30(a) would be
revised accordingly.
Additionally, a sentence would be added to Sec. 1206.30(a) to
specify that first handler Board members must receive 500,000 pounds or
more of fresh mangos annually from producers, and importer Board
members must import 500,000 pounds or more of fresh mangos or 200,000
pounds or more of frozen mangos annually. These requirements are part
of the current de minimis exemption for the program (see Sec. 1206.43
Exemptions), added to the Establishment and Membership section in Sec.
1206.30 for clarification as to who is covered under the program.
Section 1206.30(b) defines Customs Districts within the United
States that are used for allocating importer Board seats based on the
volume of mangos imported into each respective district. This section
would be revised to state that the two Board seats for importers of

[[Page 14775]]

frozen mangos shall be allocated for importers who import into any of
the districts (or ``at-large'') defined in paragraphs (1) through (4)
of Sec. 1206.30(b). The Board recommended that these two seats be at-
large to allow nominees from all four districts. This could encourage
participation on the Board from this new group regardless of their
location.

Nominations and Appointments

Section 1206.31 prescribes procedures for nominating and appointing
Board members. Board staff solicits nominees for first handler, fresh
mango importer, and domestic producer member positions and voting is
conducted by mail ballot. Nominees to fill the foreign producer member
positions are solicited from foreign producers and from foreign
producer organizations. From the nominations, the Secretary of
Agriculture then selects the members of the Board.
This section would be revised to specify procedures for nominating
foreign processors and importers of frozen mangos. The procedures would
be similar to those in place for first handlers and importers of fresh
mangos. Nominees to fill the foreign processor seat would be solicited
from foreign mango organizations and from foreign processors. Foreign
mango organizations would submit two nominees for each position, and
foreign processors could submit their own name or the names of other
foreign processors directly to the Board. The nominees would represent
the major countries exporting frozen mangos to the United States.
Nominees to fill the two at-large seats on the Board would be
solicited from all known importers of frozen mangos. The members from
each district would select the nominees for the two at-large positions
on the Board. Two nominees would be submitted for each position. The
names of the nominees would be placed on a ballot that would be sent to
importers of frozen mangos in each of the four districts for a vote.
For each position, the nominee receiving the highest number of votes
and the nominee receiving the second highest number of votes would be
submitted to USDA as the first and second choice nominees.
Accordingly, in Sec. 1206.31, paragraph (e) which prescribes
nomination procedures for fresh mango importers, would be revised to
clarify that the procedures pertain to fresh mango importers. Further,
paragraph (h) would be redesignated as paragraph (k), a new paragraph
(h) would be added to specify procedures for nominating foreign
processors, and a new paragraph (i) would be added to specify
procedures for nominating frozen mango importers.
A new paragraph (j) would be added to Sec. 1206.31 to clarify that
first handler nominees for a Board position must receive more than
500,000 pounds of fresh mangos annually from producers, and importers
must import 500,000 pounds or more of fresh mangos annually or 200,000
pounds or more of frozen mangos annually.

Term of Office

Section 1206.32 specifies that Board members serve for a 3-year
term of office. Members may serve a maximum of two consecutive 3-year
terms. This section would be revised to include the new positions for
importers of frozen mangos and foreign processors. Similar to the other
Board members, the term of office for the new positions would be 3
years, and no member could serve on the Board for more than two
consecutive 3-year terms.

Procedure

Section 1206.34(a) specifies that a quorum for the current 18-
member board consists of 10 members. The proposed rule would increase
the number of Board seats from 18 to 21, which would necessitate an
increase in quorum requirements. Therefore, this section would be
revised to specify that it would be considered a quorum at a Board
meeting when at least 11 of the 21 Board members were present.

Assessments

Section 1206.42(b) specifies that the assessment rate is three
quarters of a cent ($0.0075) per pound on all mangos (fresh). Pursuant
to paragraph (d) of Sec. 1206.42, import assessments are collected
through U.S. Customs and Border Protection (Customs). Pursuant to
paragraph (e) of that section, first handlers must submit their
assessments to the Board on a monthly basis.
In its deliberations on the proposed assessment rate for frozen
mangos, the Board considered the current assessment rate for fresh
mangos of $0.0075 per pound. Board members took into account that it
takes 2.5 pounds of fresh mangos to make one pound of frozen mangos.\6\
If the fresh equivalent assessment rate were applied to frozen mangos,
frozen mango importers would pay an assessment of approximately $0.019
per pound, which is 2.5 times the fresh mango assessment rate.
Additionally, according to the Board, manufacturing costs are higher
for frozen mangos than for fresh mangos because the fruit has been
processed.
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\6\ Kader, Adel A.; Fresh Cut Mangos as a Value-Added Product
(Literature Review and Interviews); October 2. 2008; page 20.
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The Board also considered assessment revenue as a percentage of
value. Board members refer to this computation as the ``Mango
Reinvestment Rate'' or MRR. To compute this for fresh mangos,
assessment revenue is divided by the value of imported fresh product.
The 3-year average for 2014-2016 for fresh mangos is 1.71 percent. The
computation is shown in Table 4 below.

Table 4--Assessment Revenue as Percentage of Value for Fresh Mangos
----------------------------------------------------------------------------------------------------------------
Revenue as a
Year Assessment Value percent of
revenue value
(A) (B) (C)
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2016............................................................ $7,374,170 $101,204,418 1.75
2015............................................................ 6,785,156 131,155,555 1.69
2014............................................................ 6,249,918 82,257,399 1.68
3-yr average.................................................... .............. .............. 1.71
----------------------------------------------------------------------------------------------------------------
Column (C) is computed by dividing Column A by Column B, and multiplying that figure by 100.

[[Page 14776]]

The 1.71 percent MRR was shared with importers and processors of
frozen mangos. A majority of the importers and processors contacted
indicated that, while the MRR computation seems equitable, expenses are
higher and the profit margins are lower for frozen mangos. The industry
members contacted indicated that a MRR between 1.0 and 1.5 percent was
more in line with what they saw as equitable for the frozen mango
industry.
Thus, the Board ultimately recommended an assessment rate for
frozen mangos of $0.01 per pound. As shown in Table 5 below, this
computes to an average MRR of 1.21 percent for 2014-2016. Additionally,
only imports of frozen mangos would be assessed at this rate because
first handlers in the United States receive only fresh mangos from
producers.

Table 5--Projected Assessment Revenue as Percentage of Value for Frozen Mangos
----------------------------------------------------------------------------------------------------------------
Assessment Projected Revenue as a
Year Imports Value rate (per assessment percent of
(pounds) pound) revenue value
(A) (B) (C) (D) (E)
----------------------------------------------------------------------------------------------------------------
2016............................ 117,724,239 $101,204,418 $0.01 $1,177,242 1.16
2015............................ 139,492,136 131,155,555 0.01 1,394,921 1.06
2014............................ 116,950,534 82,257,399 0.01 1,169,505 1.42
3-yr average.................... .............. .............. .............. .............. 1.21
----------------------------------------------------------------------------------------------------------------
Column D is computed by multiplying Column B by Column C.
Column E is computed by dividing Column A by Column B, and multiplying that figure by 100.

Accordingly, in Sec. 1206.42, paragraph (b) would be revised to
specify an assessment rate of $0.01 per pound for frozen mangos, and
paragraph (d)(2) would be revised to include the numbers for frozen
mangos listed in the Harmonized Tariff Schedule (HTS) of the United
States and update the HTS numbers for fresh mango imports. Section
517(d) of the 1996 Act (7 U.S.C. 7416) provides authority for one or
more rates of assessment to be levied under a research and promotion
program.

Exemptions

Section 1206.43 specifies that first handlers and importers of less
than 500,000 pounds of mangos (fresh) may claim an exemption from the
assessment obligation. The Board recommended revising the section to
specify that importers of less than 200,000 pounds of frozen mangos be
exempt from assessment. This was derived by taking into account the
ratio for converting fresh mangos into frozen mangos (2.5 pounds of
fresh to make 1 pound of frozen). Multiplying the factor 0.4 (1 pound
frozen divided by 2.5 pounds fresh) by the fresh mango exemption of
500,000 pounds computes to 200,000 pounds. Paragraphs (a) and (b) in
Sec. 1206.43 would be revised accordingly. (First handlers only
receive fresh mangos from domestic producers. Thus, the exemption
threshold for frozen mangos would only apply to importers.)
Subpart B of part 1206 specifies procedures for conducting a
referendum. In Sec. 1206.101, paragraphs (c) and (d), respectively,
define eligible first handlers and importers of 500,000 pounds or more
of mangos (fresh) annually. This section would be revised to specify
that importers of 200,000 pounds or more of frozen mangos would be
eligible to vote in referenda.
Further, this proposal would revise the term ``Board'' as defined
in Sec. 1206.2 from the ``National Mango Promotion Board'' to
``National Mango Board'' to reflect current practices. The term as it
appears in Sec. 1206.30 and in the undesignated heading preceding
Sec. 1206.30 would also be revised to read ``National Mango Board.''
Finally, this proposal would update the OMB control number specified in
Sec. 1206.78 from 0581-0209 to 0581-0093.

Initial Regulatory Flexibility Act Analysis

In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the impact of the proposed rule on
small entities. Accordingly, AMS has considered the economic impact of
this action on such entities.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. The Small Business Administration defines,
in 13 CFR part 121, small agricultural producers as those having annual
receipts of no more than $750,000 and small agricultural service firms
(first handlers and importers) as those having annual receipts of no
more than $7.5 million.
According to the Board, there are five first handlers of fresh
mangos. Based on 2016 assessment data, the majority of first handlers
handled less than $7.5 million worth of fresh mangos and would thus be
considered small entities.
Based on 2016 Customs data, there are about 275 importers of fresh
mangos and 190 importers of frozen mangos. The majority of fresh and
frozen mango importers import less than $7.5 million worth of fresh or
frozen mangos and would also be considered small entities.
This proposal invites comments on amending AMS' regulations
regarding a fresh mango national research and promotion program to
include frozen mangos as a covered commodity. The program is
administered by the Board with oversight by USDA. This proposal would
add definitions for frozen mangos (Sec. 1206.11) and foreign processor
of frozen mangos (Sec. 1206.8); expand the Board's membership from 18
to 21 by adding two importers of frozen mangos and one foreign
processor of frozen mangos (Sec. Sec. 1206.30 and 1206.31); assess
frozen mangos at a rate of $0.01 per pound (Sec. 1206.42); exempt from
assessment importers who import less than 200,000 pounds of frozen
mangos annually (Sec. 1206.43); and make clarifying and conforming
changes to other provisions in part 1206 (revisions would be made to
clarify the definitions for first handler (Sec. 1206.6) and importer
(Sec. 1206.9); quorum requirements would be revised (Sec. 1206.34);
and definitions for importers eligible to vote in referenda would be
revised (Sec. 1206.101)). Authority for amending part 1206 is provided
in Sec. 1206.36(m) and in section 514 of the 1996 Act. This proposal
would also update the definition of term ``Board'' to reflect current
practices (Sec. 1206.2, the heading preceding Sec. 1206.30, and Sec.
1206.30). Section 1206.2 provides authority for revising the term
``Board.'' Finally, this proposal would update one of the OMB numbers
(0581-0209) listed in Sec. 1206.78.

[[Page 14777]]

Mango producers are not subject to assessment under the program.
Currently, first handlers and importers of less than 500,000 pounds of
fresh mangos annually are exempt from assessment. Further, organic
mangos and exports of U.S. mangos are also exempt from assessment under
the program.
Regarding the economic impact of this proposed rule on affected
entities, importers of 200,000 pounds or more of frozen mangos annually
would pay an assessment of $0.01 per pound. Based on Customs data, of
the 190 importers of frozen mangos, about 60 imported 200,000 pounds or
more in 2016 and would pay assessments, and thus 130 importers imported
less than 200,000 pounds and would be exempt from paying assessments
under the program. Exempt importers would be able to apply to the Board
for a refund of assessments funds collected by Customs. Those
requirements are detailed in the section of this document titled
Paperwork Reduction Act. (The update to the term Board is
administrative in nature.)
Regarding the impact of this proposed action on the industry as a
whole, as shown previously in Table 3, imports of frozen mangos
averaged about 125 million pounds annually from 2014-2016. At an
assessment rate of $0.01 per pound, this would equate to about $1.25
million per year in assessment revenue.
Further, this action would allow frozen mango stakeholders to
participate in a coordinated effort to maintain and expand the existing
market for frozen mangos. These efforts would be accomplished through
Board activities including promotion, research, consumer information,
education and industry information. By collaborating within the
existing national mango promotion program, frozen mango stakeholders
could provide to consumers more information on the various uses and
benefits of frozen mangos in order to increase demand for the
commodity.
With regard to alternatives, the Board contemplated the merits of
assessing all processed mangos (i.e., frozen as well as juice and
concentrate). The Board's staff attended several process tradeshows,
conferences, and other events to garner support for the mango program.
After several outreach activities, the frozen mango industry
demonstrated the highest response out of the other process categories
to include under the mango program.
As for alternative assessment rates, as previously mentioned, the
Board considered the current assessment rate for fresh mangos of
$0.0075 per pound. However, if the fresh equivalent assessment rate
were applied to frozen mangos, frozen mango importers would pay an
assessment of approximately $0.019 per pound, which is 2.5 times the
fresh mango assessment rate. (It takes 2.5 pounds of fresh mangos to
make one pound of frozen mangos.) Additionally, according to the Board,
manufacturing costs are higher for frozen mangos than for fresh mangos
because the fruit has been processed.
The Board also considered assessment revenue as a percentage of
value. Board members refer to this computation as the ``Mango
Reinvestment Rate'' or MRR. To compute this for fresh mangos,
assessment revenue is divided by the value imported fresh product. The
3-year average for 2014-2016 for fresh mangos is 1.71 percent. The
computation was shown previously in Table 4. The 1.71 percent MRR was
shared with importers and processors of frozen mangos. A majority of
the importers and processors contacted indicated that, while the MRR
computation seems equitable, expenses are higher and the profit margins
are lower for frozen mangos. Industry members contacted indicated that
a MRR between 1.0 and 1.5 percent was more in line with what they saw
as equitable for the frozen mango industry. Thus, the Board ultimately
recommended an assessment rate for frozen mangos of $0.01 per pound. As
shown previously in Table 5, this computes to an average MRR of 1.21
percent for 2014-2016.
The Board also considered alternative exemption thresholds. When
the Board initially contemplated amending the mango regulations, it
considered all categories of processed mangos, including juice,
concentrate and frozen. Each of these categories has a different
conversion ratio, or amount of fresh mangos that it takes to make the
respective processed fruit. At that time, the Board considered an
exemption threshold of 45,000 pounds. When the Board decided to pursue
amending the program to include only frozen mangos, the Board also
decided to recommend an exemption threshold of 200,000 pounds. This was
based on the industry average ratio of 0.4 for converting fresh mangos
into frozen mangos (2.5 pounds of fresh mangos to make one pound of
frozen mangos). Multiplying the fresh mango exemption threshold of
500,000 pounds by the 0.4 ratio equals 200,000 pounds. Thus, the Board
recommended an exemption threshold of 200,000 pounds for frozen mangos.
This action would impose additional reporting and recordkeeping
requirements upon importers and processors of frozen mangos. Importers
and foreign processors of frozen mangos who were eligible and
interested in serving on the Board would submit a nomination form to
the Board indicating their desire to serve or nominate another industry
member to serve on the Board. Importers could cast a ballot and vote
for candidates to serve on the Board. Frozen mango importer and foreign
processor nominees would have to submit a background form to the
Secretary to ensure they are qualified to serve on the Board.
Additionally, importers of frozen mangos who import less than
200,000 pounds annually could request an exemption from paying
assessments. Importers of organic frozen mangos could submit a request
to the Board for an exemption from assessment for their organic mango
imports. Importers could also request a refund of assessments paid
through Customs.
Finally, frozen mango importers who want to participate in future
referenda on the program would have to complete a ballot for submission
to the Secretary.
New forms are required to collect the referenced information. These
forms will be submitted to OMB for approval under OMB Control No. 0581-
NEW. Specific burdens for the forms are detailed later in this document
in the section titled Paperwork Reduction Act. As with all Federal
promotion programs, reports and forms are periodically reviewed to
reduce information requirements and duplication by industry and public
sector agencies. Finally, there are no Federal rules that duplicate,
overlap, or conflict with this proposed rule.
In regard to outreach efforts, in 2015 the Board commissioned a
study to determine industry support for amending part 1206. Processed
mango importers responded in favor of amending the program. The survey
respondents represented 72 percent of the imported processed mango
volume. The Board also hosted a webinar in June 2015 and invited all
known importers of processed mangos to participate. Fifteen industry
members participated in the webinar. Of the attendees, 95 percent
supported amending the program to include processed mangos. Two
importers of frozen mangos participated in the Board's meeting in
September 2015 where this issue was discussed.
In 2016, Board representatives attended tradeshows and conferences
for processed fruit products in the U.S. and visited several mango
producing regions and receiving ports in order to meet with processors
and importers to discuss amending the program. Board representatives
attended 21 meetings

[[Page 14778]]

with frozen mango importers of record. The Board subsequently conducted
another survey where 74 companies were contacted via electronic mail
and telephone calls. For the companies that participated in the survey,
71 percent were in favor of amending the program to include frozen
mangos. The Board continues to educate and update the mango industry on
its marketing activities.
AMS has performed this initial RFA regarding the impact of this
proposed amendment to part 1206 on small entities and invites comments
concerning potential effects of this amendment on small businesses.

Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), AMS announces its intention to request an approval of new
information collection and recordkeeping requirements for the frozen
mango industry. Information collection and recordkeeping requirements
for the fresh mango program (part 1206) have previously been approved
under OMB control nos. 0581-0093 and 0505-0001. Upon approval of this
action and associated burden, AMS would submit a Justification for
Change to merge this new burden for frozen mangos into the currently
approved collection for fresh mangos.
Title: Frozen mango research, promotion and consumer information
program.
OMB Number: 0581--NEW.
Type of Request: New information collection for research and
promotion programs.
Abstract: The information collection requirements in the request
are essential to carry out the intent of the 1996 Act. The information
collection concerns a recommendation received by USDA to amend the
fresh mango national research and promotion program (part 1206) to
include frozen mangos. The program is currently financed by an
assessment on first handlers and importers of 500,000 pounds or more
fresh mangos annually. The program is administered by the Board with
oversight by USDA.
In November 2016, the Board recommended amending part 1206 to
include frozen mangos. Importers of 200,000 or more frozen mangos
annually would pay assessments. The Board would be expanded from 18 to
21 members by adding two importers of frozen mangos and one foreign
processor of frozen mangos. This action would allow frozen mango
stakeholders to participate in a coordinated effort to maintain and
expand the market for frozen mangos.
In summary, the information collection requirements regarding
frozen mangos pertain to Board nominations, the collection of
assessments, and referenda. Frozen mango importers and foreign
processors interested in serving on the Board would submit a
``Nomination Form'' to the Board indicating their desire to serve or to
nominate another industry member to serve on the Board. They could
submit a ``Nomination Ballot'' to the Board where they would vote for
candidates to serve on the Board. Nominees would also have to submit a
background information form, ``AD-755,'' to the Secretary to ensure
they are qualified to serve. Frozen mango importers of less than
200,000 pounds annually could submit a request, ``Application for
Exemption from Assessments,'' to the Board and request a refund of any
assessments paid using proposed form ``Application for Reimbursement of
Assessment.'' (Import assessments would be collected by Customs and
remitted to the Board.) Importers of organic frozen mangos could also
apply to the Board for an exemption from assessment. Finally, importers
of frozen mangos would have the opportunity to vote in future referenda
on the program.
This new information collection would impose a total burden of
167.37 hours and 287.48 responses for 190 respondents. New information
collection requirements that are included in this proposal pertaining
to the frozen mango industry include:

(1) Nomination Form

Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 0.25 hour per response.
Respondents: Importers of 200,000 pounds or more of frozen mangos
annually and foreign processors.
Estimated Number of Respondents: 20.
Estimated Number of Responses per Respondent: .33 (1 every 3
years).
Estimated Total Annual Burden on Respondents: 1.65 hours.

(2) Nomination Ballot

Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 0.25 hour per response.
Respondents: Importers of 200,000 pounds or more of frozen mangos
annually and foreign processors.
Estimated Number of Respondents: 30.
Estimated Number of Responses per Respondent: .33 (1 every 3
years).
Estimated Total Annual Burden on Respondents: 2.48 hours.

(3) Application for Exemption From Assessments

Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 0.25 hour per response. Upon
approval, the applicant would receive exemption certification.
Respondents: Importers of less than 200,000 pounds of frozen mangos
annually.
Estimated Number of Respondents: 130.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 32.5 hours.

(4) Application for Reimbursement of Assessment

Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 0.25 hour per response.
Respondents: Importers of less than 200,000 pounds of frozen mangos
annually.
Estimated Number of Respondents: 130.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 32.5 hours.

(5) Organic Exemption Request Form

Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 0.25 hour per response.
Respondents: Importers of 200,000 pounds or more of organic frozen
mangos annually.
Estimated Number of Respondents: 5.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 1.25 hours.

(6) Referendum Ballot

Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 0.25 hour per response.
Respondents: Importers of 200,000 pounds or more of frozen mangos
annually.
Estimated Number of Respondents: 20.
Estimated Number of Responses per Respondent: .20 (1 every 5
years).
Estimated Total Annual Burden on Respondents: 1.0 hours.

(7) Background Information Form AD--755 (OMB Form No. 0505-0001)

Estimate of Burden: Public reporting burden for this collection of
information

[[Page 14779]]

is estimated to average 0.5 hour per response.
Respondents: Importers of 200,000 pounds or more of frozen mangos
and foreign processors.
Estimated Number of Respondents: 6.
Estimated Number of Responses per Respondent: .33 (1 every 3
years).
Estimated Total Annual Burden on Respondents: 1.0 hour.

(8) A Requirement To Maintain Records Sufficient To Verify Reports
Submitted Under Part 1206

Estimate of Burden: Public recordkeeping burden for keeping this
information is estimated to average 0.5 hour per record keeper
maintaining such records.
Recordkeepers: Importers of frozen mangos.
Estimated number of recordkeepers: 190 (130 exempt and 60
assessment payers).
Estimated total recordkeeping hours: 95 hours.
An estimated 190 respondents would provide information to the
Board. The estimated cost of providing the information to the Board by
respondents would be $2,870.90. This total has been estimated by
multiplying 95 total hours required for reporting and recordkeeping by
$30.22, the average mean hourly earnings of importers. Data for
computation of this hourly rate was obtained from the U.S. Department
of Labor Statistics.
The proposed revisions to the fresh mango program have been
carefully reviewed, and every effort has been made to minimize any
unnecessary recordkeeping costs or requirements, including efforts to
utilize information already submitted under other programs administered
by USDA and other state programs.
The proposed forms would require the minimum information necessary
to effectively carry out the requirements of the program, and their use
is necessary to fulfill the intent of the 1996 Act. Such information
can be supplied without data processing equipment or outside technical
expertise. In addition, there are no additional training requirements
for individuals filling out reports and remitting assessments to the
Board. The forms would be simple, easy to understand, and place as
small a burden as possible on the person required to file the
information.
The information to be included on these forms is not available from
other sources because such information relates specifically to
individual importers and processors of frozen mangos who would be
subject to the provisions of the 1996 Act. Therefore, there is no
practical method for collecting the required information without the
use of these forms.

Request for Public Comment Under the Paperwork Reduction Act

Comments are invited on: (a) Whether the proposed collection of
information is necessary for the proper performance of functions of the
proposed amended program and USDA's oversight of the proposed amended
program, including whether the information would have practical
utility; (b) the accuracy of USDA's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (c) the accuracy of USDA's estimate
of the number of importers of frozen mangos that would be covered under
the program; (d) ways to enhance the quality, utility, and clarity of
the information to be collected; and (e) ways to minimize the burden of
the collection of information on those who are to respond, including
the use of appropriate automated, electronic, mechanical, or other
technological collection techniques or other forms of information
technology.
Comments concerning the information collection requirements
contained in this action should reference OMB No. 0581-NEW. In
addition, the document number, date, and page number of this issue of
the Federal Register also should be referenced. Comments should be sent
to the same addresses referenced in the ADDRESSES section of this
proposed rule.
OMB is required to make a decision concerning the collection of
information contained in this proposed rule between 30 and 60 days
after publication. Therefore, a comment to OMB is best assured of
having its full effect if OMB receives it within 30 days of
publication.
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 determined that this proposed rule is consistent with and
would effectuate the purposes of the 1996 Act.
A 60-day comment period is provided to allow interested persons to
respond to this proposal. All written comments received in response to
this proposed rule by the date specified would be considered prior to
finalizing this action.

List of Subjects in 7 CFR Part 1206

Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Mango promotion, Reporting and
recording requirements.

For the reasons set forth in the preamble, 7 CFR part 1206 is
proposed to be amended as follows:

PART 1206--MANGO RESEARCH, PROMOTION, AND INFORMATION ORDER

0
1. The authority citation for 7 CFR part 1206 continues to read as
follows:

Authority: 7 U.S.C. 7411-7425 and 7401.

0
2. Revise Sec. 1206.2 to read as follows:

Sec. 1206.2 Board.

Board or National Mango Board means the administrative body
established pursuant to Sec. 1206.30, or such other name as
recommended by the Board and approved by the Department.
0
3. Revise Sec. 1206.6 to read as follows:

Sec. 1206.6 First handler.

First handler means any person (excluding a common or contract
carrier) receiving fresh mangos from producers in a calendar year and
who as owner, agent, or otherwise ships or causes mangos to be shipped
as specified in this Order. This definition includes those engaged in
the business of buying, selling and/or offering for sale; receiving;
packing; grading; marketing; or distributing mangos in commercial
quantities. The term first handler includes a producer who handles or
markets mangos of the producer's own production.
0
4. Amend Sec. 1206.8 by revising the section heading, designating the
introductory text as paragraph (a) and adding paragraph (b) to read as
follows:

Sec. 1206.8 Foreign producers and foreign processor of frozen mangos
or foreign processor.

* * * * *
(b) Foreign processor of frozen mangos or foreign processor means
any person:
(1) Who is engaged in the preparation of frozen mangos for market
to the United States and/or who owns or shares the ownership and risk
of loss of such mangos; and
(2) Who exports frozen mangos to the United States.
0
5. Revise Sec. 1206.9 to read as follows:

Sec. 1206.9 Importer.

Importer means any person importing mangos into the United States
in a calendar year as a principal or as an

[[Page 14780]]

agent, broker, or consignee of any person who produces or handles
mangos outside of the United States for sale in the United States, and
who is listed as the importer of record for such mangos.
0
6. Revise Sec. 1206.11 to read as follows:

Sec. 1206.11 Mangos.

Mangos means the fruit of Mangifera indica L. of the family
Anacardiaceae. For purposes of this Order, the term mangos includes:
(a) Fresh mangos, which means mangos in their fresh form; and
(b) Frozen mangos, which means mangos that are uncooked or cooked
by steaming or boiling in water, and then frozen, whether or not
containing added sugar or other sweetening agent.
0
7. Revise the undesignated center heading preceding

Sec. 1206.30 to read ``National Mango Board.''

0
8. In Sec. 1206.30, revise paragraph (a) and the introductory text of
paragraph (b) to read as follows:

Sec. 1206.30 Establishment and membership.

(a) Establishment of the National Mango Board. There is hereby
established a National Mango Board composed of eight importers of fresh
mangos; one first handler of fresh mangos; two domestic producers of
fresh mangos; seven foreign producers of fresh mangos; two importers of
frozen mangos; and one foreign processor of frozen mangos. First
handler Board members must receive 500,000 pounds or more of fresh
mangos annually from producers, and importer Board members must import
500,000 pounds or more of fresh mangos or 200,000 pounds or more of
frozen mangos annually. The chairperson shall reside in the United
States and the Board office shall also be located in the United States.
(b) Importer districts. Board seats for importers of fresh mangos
shall be allocated based on the volume of fresh mangos imported into
the Customs Districts identified by their name and Code Number as
defined in the Harmonized Tariff Schedule of the United States. Two
seats shall be allocated for District I, three seats for District II,
two seats for District III, and one seat for District IV. Two at-large
seats shall be allocated for importers of frozen mangos who import into
any of the four defined districts.
* * * * *
0
9. In Sec. 1206.31, revise paragraph (e), redesignate paragraph (h) as
paragraph (k), and add new paragraphs (h), (i), and (j) to read as
follows:

Sec. 1206.31 Nominations and appointments.

* * * * *
(e) Nominees to fill the fresh mango importer positions on the
Board shall be solicited from all known importers of fresh mangos. The
members from each district shall select the nominees for two positions
on the Board. Two nominees shall be submitted for each position. The
nominees shall be placed on a ballot which will be sent to fresh mango
importers in the districts for a vote. For each position, the nominee
receiving the highest number of votes and the nominee receiving the
second highest number of votes shall be submitted to the Department as
the fresh importers' first and second choice nominees.
* * * * *
(h) Nominees to fill the foreign processor of frozen mangos
position on the Board shall be solicited from foreign mango
organizations and from foreign processors. Foreign mango organizations
shall submit two nominees for each position, and foreign processors may
submit their name or the names of other foreign processors directly to
the Board. The nominees shall represent the major countries exporting
frozen mangos to the United States.
(i) Nominees to fill the at-large positions on the Board shall be
solicited from all known importers of frozen mangos. The members from
each district shall select the nominees for the two at-large positions
on the Board. Two nominees shall be submitted for each position. The
nominees shall be placed on a ballot which will be sent to importers of
frozen mangos in each of the four districts for a vote. For each
position, the nominee receiving the highest number of votes and the
nominee receiving the second highest number of votes shall be submitted
to the Department as the first and second choice nominees.
(j) First handler nominees must receive 500,000 pounds or more of
fresh mangos annually from producers, and importer nominees must import
500,000 pounds or more of fresh mangos or 200,000 pounds or more of
frozen mangos annually.
0
10. Revise Sec. 1206.32 to read as follows:

Sec. 1206.32 Term of office.

The term of office for first handler, importer, domestic producer,
and foreign producer and foreign processor members of the Board will be
three years. Members may serve a maximum of two consecutive three-year
terms. Each term of office will end on December 31, with new terms of
office beginning on January 1.
0
11. In Sec. 1206.34, revise paragraph (a) to read as follows:

Sec. 1206.34 Procedure.

(a) At a Board meeting, it will be considered a quorum when at
least eleven voting members are present.
* * * * *
0
12. In Sec. 1206.42, revise paragraphs (b), (d)(1), (d)(2), (d)(3) and
(d)(4) to read as follows:

Sec. 1206.42 Assessments.

* * * * *
(b) The assessment rate on all fresh mangos shall be three quarters
of a cent ($0.0075) per pound (or $0.0165 per kg). The assessment rate
on all frozen mangos shall be one cent ($0.01) per pound (or $0.022 per
kg). The assessment rates will be reviewed periodically and may be
modified by the Board with the approval of the Department.
* * * * *
(d) * * *
(1) The assessment rate for imported fresh mangos that are
identified by the numbers 0804.50.4040 and 0804.50.6040 in the
Harmonized Tariff Schedule (HTS) of the United States shall be the same
or equivalent to the rate for mangos produced in the United States.
(2) The import assessment shall be uniformly applied to imported
frozen mangos that are identified by the numbers 0804.50.4045,
0804.50.4055, 0804.50.6045, 0804.50.6055, and 0811.90.5200 in the
Harmonized Tariff Schedule (HTS) of the United States shall be the same
or equivalent to the rate for mangos produced in the United States.
(3) In the event that any HTS number subject to assessment is
changed and such change is merely a replacement of a previous number
and has no impact on the description of fresh mango and frozen mangos,
assessments will continue to be collected based on the new numbers.
(4) The assessments due on imported mangos shall be paid when they
enter or are withdrawn for consumption in the United States.
* * * * *
0
13. In Sec. 1206.43, revise paragraphs (a) and (b) to read as follows:

Sec. 1206.43 Exemptions.

(a) Any first handler of less than 500,000 pounds of fresh mangos
per calendar year, or importer of less than 500,000 pounds of fresh
mangos or less than 200,000 pounds of frozen mangos per calendar year
may claim an exemption from the assessments required under Sec.
1206.42. First handlers who export mangos from the United States may
annually claim an exemption

[[Page 14781]]

from the assessments required under Sec. 1206.42.
(b) A first handler or importer desiring an exemption shall apply
to the Board, on a form provided by the Board, for a certificate of
exemption. A first handler must certify that it will receive less than
500,000 pounds of domestic fresh mangos during the fiscal period for
which the exemption is claimed. An importer must certify that it will
import less than 500,000 pounds of fresh mangos or less than 200,000
pounds of frozen mangos for the fiscal period for which the exemption
is claimed.
* * * * *
0
14. Revise Sec. 1206.78 to read as follows:

Sec. 1206.78 OMB control number.

The control numbers assigned to the information collection
requirements of this part by the Office of Management and Budget
pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35,
are OMB control number 0505-0001 and OMB control number 0581-0093.
0
15. In Sec. 1206.101, revise paragraphs (c), (d) and (e) to read as
follows:

Sec. 1206.101 Definitions.

* * * * *
(c) Eligible first handler means any person, (excluding a common or
contract carrier), receiving 500,000 or more pounds of fresh mangos
from producers in a calendar year and who as owner, agent, or otherwise
ships or causes mangos to be shipped as specified in this Order. This
definition includes those engaged in the business of buying, selling
and/or offering for sale; receiving; packing; grading; marketing; or
distributing mangos in commercial quantities. The term first handler
includes a producer who handles or markets mangos of the producer's own
production.
(d) Eligible importer means any person importing 500,000 or more
pounds of fresh mangos or 200,000 or more pounds of frozen mango into
the United States in a calendar year as a principal or as an agent,
broker, or consignee of any person who produces or handles mangos
outside of the United States for sale in the United States, and who is
listed as the importer of record for such mangos that are identified in
the Harmonized Tariff Schedule of the United States by the numbers
0804.50.4045, 0804.50.4055, 0804.50.6045, 0804.50.6055, and
0811.90.5200, during the representative period. Importation occurs when
mangos originating outside of the United States are released from
custody by Customs and introduced into the stream of commerce in the
United States. Included are persons who hold title to foreign-produced
mangos immediately upon release by Customs, as well as any persons who
act on behalf of others, as agents or brokers, to secure the release of
mangos from Customs when such mangos are entered or withdrawn for
consumption in the United States.
(e) Mangos means the fruit of Mangifera indica L. of the family
Anacardiaceae. The term mangos includes:
(1) Fresh mangos, which means in their fresh form; and
(2) Frozen mangos, which means mangos that are uncooked or cooked
by steaming or boiling in water, and then frozen, whether or not
containing added sugar or other sweetening agent.
* * * * *

Dated: April 2, 2018.
Bruce Summers,
Acting Administrator.
[FR Doc. 2018-06968 Filed 4-5-18; 8:45 am]
BILLING CODE 3410-02-P

Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Proposed Rules 14771

(2) the estimated demand for each class duplication by industry and public- (a) Class 1 (Scotch) oil—a salable
of oil; (3) the prospective production of sector agencies. quantity of 760,660 pounds and an
each class of oil; (4) the total of AMS is committed to complying with allotment percentage of 35 percent.
allotment bases of each class of oil for the E-Government Act, to promote the (b) Class 3 (Native) oil—a salable
the current marketing year and the use of the internet and other quantity of 1,307,947 pounds and an
estimated total of allotment bases of information technologies to provide allotment percentage of 53 percent.
each class for the ensuing marketing increased opportunities for citizen
§ 985.234 [Removed].
year; (5) the quantity of reserve oil, by access to Government information and
class, in storage; (6) producer prices of services, and for other purposes. § 985.235 [Removed].
oil, including prices for each class of oil; USDA has not identified any relevant ■ 3. Remove §§ 985.234 and 985.235.
and (7) general market conditions for Federal rules that duplicate, overlap, or Dated: April 2, 2018
each class of oil, including whether the conflict with this proposed rule.
estimated season average price to Bruce Summers,
In addition, the Committee’s meeting
producers is likely to exceed parity. Acting Administrator, Agricultural Marketing
was widely publicized throughout the
Based on its review, the Committee Service.
spearmint oil industry and all interested
believes that the salable quantities and [FR Doc. 2018–06973 Filed 4–5–18; 8:45 am]
persons were invited to attend the
allotment percentages recommended meeting and participate in Committee BILLING CODE 3410–02–P
would achieve the objectives sought. deliberations on all issues. Like all
The Committee also believes that, Committee meetings, the October 25,
should there be no volume regulation in DEPARTMENT OF AGRICULTURE
2017, meeting was a public meeting and
effect for the upcoming marketing year, all entities, both large and small, were
the Far West spearmint oil industry Agricultural Marketing Service
able to express views on this issue.
would return to the pronounced cyclical Finally, interested persons are invited to
price patterns that occurred prior to the 7 CFR Part 1206
submit comments on this proposed rule,
promulgation of the Order. As including the regulatory and [Document No. AMS–SC–17–0002]
previously stated, annual salable informational impacts of this action on
quantities and allotment percentages Mango Promotion, Research and
small businesses.
have been issued for both classes of Information Order; Amendment To
A small business guide on complying
spearmint oil since the Order’s Include Frozen Mangos
with fruit, vegetable, and specialty crop
inception. The salable quantities and marketing agreements and orders may AGENCY: Agricultural Marketing Service,
allotment percentages proposed herein be viewed at: http://www.ams.usda.gov/ USDA.
are expected to facilitate the goal of rules-regulations/moa/small-businesses. ACTION: Proposed rule.
maintaining orderly marketing Any questions about the compliance
conditions for Far West spearmint oil guide should be sent to Richard Lower SUMMARY: This proposed rule invites
for the 2018–2019 and future marketing at the previously mentioned address in comments on amending the Agricultural
years. Marketing Service’s (AMS) regulations
the FOR FURTHER INFORMATION CONTACT
Costs to producers and handlers, large regarding a fresh mango national
and small, resulting from this proposal section.
A 60-day comment period is provided research and promotion program to
are expected to be offset by the benefits include frozen mangos as a covered
derived from a more stable market and to allow interested persons to respond
to this proposal. All written comments commodity. Additionally, this proposal
increased returns. The benefits of this announces AMS’ intent to request
rule are expected to be equally available timely received will be considered
before a final determination is made on approval by the Office of Management
to all producers and handlers regardless and Budget (OMB) of new information
of their size. this matter.
collection requirements necessary to
In accordance with the Paperwork List of Subjects in 7 CFR Part 985 include frozen mangos under the
Reduction Act of 1995 (44 U.S.C. program.
Chapter 35), the Order’s information Marketing agreements, Oils and fats,
collection requirements have been Reporting and recordkeeping DATES: Comments must be received by
previously approved by OMB and requirements, Spearmint oil. June 5, 2018. Pursuant to the Paperwork
assigned OMB No. 0581–0178, Specialty For the reasons set forth in the Reduction Act, comments on the
Crops Program. No changes are preamble, 7 CFR part 985 is proposed to information collection burden that
necessary in those requirements as a be amended as follows: would result from this proposal must be
result of this action. Should any changes received by June 5, 2018.
become necessary, they would be PART 985—MARKETING ORDER ADDRESSES: Interested persons are
submitted to OMB for approval. REGULATING THE HANDLING OF invited to submit written comments
This proposed rule would establish SPEARMINT OIL PRODUCED IN THE concerning this proposal. Comments
the salable quantities and allotment FAR WEST may be submitted on the internet at:
percentages for Class 1 (Scotch) http://www.regulations.gov. Comments
spearmint oil and Class 3 (Native) ■ 1. The authority citation for 7 CFR may also be sent to the Promotion and
spearmint oil produced in the Far West part 985 continues to read as follows: Economics Division, Specialty Crops
during the 2018–2019 marketing year. Authority: 7 U.S.C. 601–674. Program, AMS, USDA, Room 1406–S,
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Accordingly, this proposal would not ■ 2. Revise § 985.233 to read as follows: Stop 0244, 1400 Independence Avenue
impose any additional reporting or SW, Washington, DC 20250–0244;
recordkeeping requirements on either § 985.233 Salable quantities and allotment facsimile: (202) 205–2800. All
small or large spearmint oil producers percentages. comments submitted should reference
or handlers. As with all Federal The salable quantity and allotment the document number and page number
marketing order programs, reports and percentage for each class of spearmint of this issue of the Federal Register and
forms are periodically reviewed to oil during the marketing year beginning will be made available for public
reduce information requirements and on June 1, 2018, shall be as follows: inspection, including name and address,

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Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Proposed Rules 14775

frozen mangos shall be allocated for The names of the nominees would be board consists of 10 members. The
importers who import into any of the placed on a ballot that would be sent to proposed rule would increase the
districts (or ‘‘at-large’’) defined in importers of frozen mangos in each of number of Board seats from 18 to 21,
paragraphs (1) through (4) of the four districts for a vote. For each which would necessitate an increase in
§ 1206.30(b). The Board recommended position, the nominee receiving the quorum requirements. Therefore, this
that these two seats be at-large to allow highest number of votes and the section would be revised to specify that
nominees from all four districts. This nominee receiving the second highest it would be considered a quorum at a
could encourage participation on the number of votes would be submitted to Board meeting when at least 11 of the
Board from this new group regardless of USDA as the first and second choice 21 Board members were present.
their location. nominees.
Accordingly, in § 1206.31, paragraph Assessments
Nominations and Appointments
(e) which prescribes nomination Section 1206.42(b) specifies that the
Section 1206.31 prescribes procedures procedures for fresh mango importers, assessment rate is three quarters of a
for nominating and appointing Board would be revised to clarify that the cent ($0.0075) per pound on all mangos
members. Board staff solicits nominees procedures pertain to fresh mango (fresh). Pursuant to paragraph (d) of
for first handler, fresh mango importer, importers. Further, paragraph (h) would § 1206.42, import assessments are
and domestic producer member be redesignated as paragraph (k), a new collected through U.S. Customs and
positions and voting is conducted by paragraph (h) would be added to specify Border Protection (Customs). Pursuant
mail ballot. Nominees to fill the foreign procedures for nominating foreign to paragraph (e) of that section, first
producer member positions are solicited processors, and a new paragraph (i) handlers must submit their assessments
from foreign producers and from foreign would be added to specify procedures to the Board on a monthly basis.
producer organizations. From the for nominating frozen mango importers.
nominations, the Secretary of In its deliberations on the proposed
A new paragraph (j) would be added
Agriculture then selects the members of assessment rate for frozen mangos, the
to § 1206.31 to clarify that first handler
the Board. Board considered the current
nominees for a Board position must
This section would be revised to assessment rate for fresh mangos of
receive more than 500,000 pounds of
specify procedures for nominating $0.0075 per pound. Board members took
fresh mangos annually from producers,
foreign processors and importers of into account that it takes 2.5 pounds of
and importers must import 500,000
frozen mangos. The procedures would fresh mangos to make one pound of
pounds or more of fresh mangos
be similar to those in place for first frozen mangos.6 If the fresh equivalent
annually or 200,000 pounds or more of
handlers and importers of fresh mangos. assessment rate were applied to frozen
frozen mangos annually.
Nominees to fill the foreign processor mangos, frozen mango importers would
seat would be solicited from foreign Term of Office pay an assessment of approximately
mango organizations and from foreign Section 1206.32 specifies that Board $0.019 per pound, which is 2.5 times
processors. Foreign mango organizations members serve for a 3-year term of the fresh mango assessment rate.
would submit two nominees for each office. Members may serve a maximum Additionally, according to the Board,
position, and foreign processors could of two consecutive 3-year terms. This manufacturing costs are higher for
submit their own name or the names of section would be revised to include the frozen mangos than for fresh mangos
other foreign processors directly to the new positions for importers of frozen because the fruit has been processed.
Board. The nominees would represent mangos and foreign processors. Similar The Board also considered assessment
the major countries exporting frozen to the other Board members, the term of revenue as a percentage of value. Board
mangos to the United States. office for the new positions would be 3 members refer to this computation as
Nominees to fill the two at-large seats years, and no member could serve on the ‘‘Mango Reinvestment Rate’’ or
on the Board would be solicited from all the Board for more than two consecutive MRR. To compute this for fresh mangos,
known importers of frozen mangos. The 3-year terms. assessment revenue is divided by the
members from each district would select value of imported fresh product. The 3-
the nominees for the two at-large Procedure year average for 2014–2016 for fresh
positions on the Board. Two nominees Section 1206.34(a) specifies that a mangos is 1.71 percent. The
would be submitted for each position. quorum for the current 18-member computation is shown in Table 4 below.

TABLE 4—ASSESSMENT REVENUE AS PERCENTAGE OF VALUE FOR FRESH MANGOS
Revenue as a
Assessment
Year Value percent of
revenue value

(A) (B) (C)

2016 ............................................................................................................................................. $7,374,170 $101,204,418 1.75
2015 ............................................................................................................................................. 6,785,156 131,155,555 1.69
2014 ............................................................................................................................................. 6,249,918 82,257,399 1.68
3-yr average ................................................................................................................................. ........................ ........................ 1.71
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Column (C) is computed by dividing Column A by Column B, and multiplying that figure by 100.

6 Kader, Adel A.; Fresh Cut Mangos as a Value-

Added Product (Literature Review and Interviews);
October 2. 2008; page 20.

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Document Created: 2018-11-01 09:14:58
Document Modified: 2018-11-01 09:14:58

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule.
Dates		Comments must be received by June 5, 2018. Pursuant to the Paperwork Reduction Act, comments on the information collection burden that would result from this proposal must be received by June 5, 2018.
Contact		Jeanette Palmer, Marketing Specialist, Promotion and Economics Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Room 1406-S, Stop 0244, Washington, DC 20250-0244; telephone: (202) 720-9915; facsimile: (202) 205-2800; email: [email protected]
FR Citation		83 FR 14771
CFR Associated		Administrative Practice and Procedure; Advertising; Consumer Information; Marketing Agreements; Mango Promotion and Reporting and Recording Requirements

83 FR 14771 - Mango Promotion, Research and Information Order; Amendment To Include Frozen Mangos

DEPARTMENT OF AGRICULTUREAgricultural Marketing Service

Federal Register Volume 83, Issue 67 (April 6, 2018)

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service