[Federal Register Volume 73, Number 244 (Thursday, December 18, 2008)]
[Rules and Regulations]
[Pages 76863-76868]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30080]
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DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
7 CFR Part 319
[Docket No. APHIS-2007-0144]
RIN 0579-AC76
Importation of Baby Squash and Baby Courgettes From Zambia
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Final rule.
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SUMMARY: We are amending the fruits and vegetables regulations to allow
the importation into the continental United States of baby squash and
baby courgettes from Zambia. As a condition of entry, both commodities
must be produced in accordance with a systems approach that includes
requirements for pest exclusion at the production site, fruit fly
trapping inside and outside the production site, and pest-excluding
packinghouse procedures. Both commodities must also be accompanied by a
phytosanitary certificate with an additional declaration stating that
the baby squash or baby courgettes have been produced in accordance
with the requirements of the systems approach. This action will allow
the importation of baby squash and baby courgettes from Zambia into the
United States while continuing to provide protection against the
introduction of quarantine pests.
DATES: Effective Date: January 20, 2009.
FOR FURTHER INFORMATION CONTACT: Shirley Wager Page, Branch Chief,
Commodity Import Analysis and Operations, PPQ, APHIS, 4700 River Road
Unit 133, Riverdale, MD 20737-1231; (301) 734-8758.
SUPPLEMENTARY INFORMATION:
Background
The regulations in ``Subpart-Fruits and Vegetables'' (7 CFR 319.56
through
[[Page 76864]]
319.56-47, referred to below as the regulations) prohibit or restrict
the importation of fruits and vegetables into the United States from
certain parts of the world to prevent the introduction and
dissemination of plant pests that are new to or not widely distributed
within the United States.
On May 16, 2008, we published in the Federal Register (73 FR 28372-
28377, Docket No. APHIS-2007-0144) a proposal \1\ to amend the fruits
and vegetables regulations to allow the importation into the
continental United States of baby squash and baby courgettes from
Zambia. As a condition of entry, we proposed to require that both
commodities be produced in accordance with a systems approach that
would include requirements for pest exclusion at the production site,
fruit fly trapping inside and outside the production site, and pest-
excluding packinghouse procedures. We also proposed to require that
both commodities be accompanied by a phytosanitary certificate with an
additional declaration stating that the baby squash or baby courgettes
have been produced in accordance with the proposed requirements.
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\1\ To view the proposed rule and the comment we received, go to
http://www.regulations.gov/fdmspublic/component/
main?main=DocketDetail&d=APHIS-2007-0144.
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We solicited comments concerning our proposal for 60 days ending
July 15, 2008. We received one comment by that date, from a
representative of a State government. The issues raised in that comment
are discussed below.
The systems approach we proposed was designed to mitigate, among
other quarantine pests, three moths, Diaphania indica, Helicoverpa
armigera, and Spodoptera littoralis. The commenter stated that, because
these pests are internal feeders, inspection and detection at origin
and destination are problematic, and reliance on inspection places the
commenter's State at high risk of introduction of these pests. The
commenter further stated that the two pests that have the highest
unmitigated risk, H. armigera and S. littoralis, are of great concern
in the commenter's State. Yet, the commenter stated, there are no real
mitigative measures to exclude these pests other than insect-
exclusionary greenhouses; there is no trapping requirement or specific
inspection regime to assure there have been no breaches of greenhouses.
Under the final rule, the greenhouses and packinghouses will have
to be approved jointly by the Zambian national plant protection
organization (NPPO) and APHIS and designed to be pest-free. In
addition, inspection will not be performed solely on the commodities;
the greenhouses themselves will be inspected monthly for the presence
of the pests. If any quarantine pests are found in a greenhouse, that
greenhouse will be prohibited from exporting until corrective action is
taken. Thus, we are employing more mitigations than simple commodity
inspection to prevent baby squash and baby courgettes imported from
Zambia from being infested with these pests.
We have employed measures similar to the ones we proposed to
mitigate the risk associated with H. armigera and S. littoralis in
other import programs. For example, the regulations in Sec. 319.56-
28(e), which allow the importation of tomatoes from Australia under
certain conditions, require greenhouses to be registered with and
approved by the Australian NPPO and to be inspected by the Australian
NPPO to establish freedom from H. armigera and S. littoralis. Similar
measures are used to mitigate the risk associated with H. armigera and
S. littoralis in the regulations governing the importation of peppers
from Korea in Sec. 319.56-42. These measures have been effective at
preventing the introduction of H. armigera and S. littoralis into the
United States via the importation of those commodities. We have
determined that they will be equally effective when employed to prevent
the introduction of these pests via baby squash and baby courgettes
from Zambia.
We proposed that the Zambian NPPO or its approved designee be
authorized to carry out certain functions. The commenter asked who
would be the designee and who would approve the designee.
As discussed in the proposed rule, an approved designee is an
entity with which the NPPO creates a formal agreement that allows that
entity to certify that the appropriate procedures have been followed.
Thus, the NPPO approves an approved designee. The approved designee can
be a contracted entity, a coalition of growers, or the growers
themselves. APHIS authorizes NPPOs to use designees to perform certain
phytosanitary functions in other import programs, such as the cut
flower import program described in Sec. 319.74-2.
The commenter stated that the proposal indicates APHIS can monitor
the production sites before and during harvest. The commenter further
stated that the word ``can'' is meaningless and recommended that the
text in question read ``APHIS will monitor the production sites.''
The proposed language specifically stated that APHIS must be
allowed to inspect or monitor the greenhouses. We consider this
language to be appropriate, as it may not be necessary for APHIS to
inspect or monitor the greenhouses in all cases. We will inspect or
monitor the greenhouses if we have reason to believe that the risks
associated with the quarantine pests might not be effectively mitigated
in the greenhouses.
The commenter stated that the use of McPhail traps as a detection
tool is problematic, as they have very limited sensitivity in detecting
low-level fruit fly populations.
We have determined that McPhail traps are the appropriate type to
use for the trapping due to their capacity to catch important fruit fly
species of quarantine significance for which no specific lures exist,
such as the Dacus spp. fruit flies identified as quarantine pests in
the pest risk assessment. Accordingly, the risk management document
provided along with the proposed rule reflects this. However, the
regulations specifically require the use of traps approved by APHIS,
meaning that we can change the type of fruit fly trap used if a trap
better suited to Dacus spp. fruit flies becomes available.
Therefore, for the reasons given in the proposed rule and in this
document, we are adopting the proposed rule as a final rule, without
change.
Executive Order 12866 and Regulatory Flexibility Act
This final rule has been reviewed under Executive Order 12866. The
rule has been determined to be not significant for the purposes of
Executive Order 12866 and, therefore, has not been reviewed by the
Office of Management and Budget.
In accordance with the Regulatory Flexibility Act, we have analyzed
the potential economic effects of this action on small entities.
This analysis examines potential impacts for U.S. small entities
from the importation of baby squash and baby courgettes (zucchini) from
Zambia into the United States. The analysis is set forth in terms of
squash generally. As background, we provide a brief overview of squash
production and trade by the United States. This is followed with an
estimate of price and welfare effects of the rule based on assumed
levels of squash imports from Zambia. Finally, we describe the expected
impact on small entities.
[[Page 76865]]
U.S. Squash Production and Trade
The United States is a major squash producer and importer.\2\ The
United States produced 430,100 metric tons (MT) of squash valued at
$229 million in 2006, while imports that year totaled 240,590 MT.
Squash production occurs in many States. However, the top 10 States
(Georgia, Florida, California, New York, Michigan, Ohio, Texas, North
Carolina, Oregon, and New Jersey) accounted for 98 percent of total
cash receipts in 2006.\3\
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\2\ Squash can be classified depending on whether it is
harvested as immature fruit (summer squash) or mature fruit (winter
squash). Summer squash, such as zucchini (also known as courgette),
pattypan, and yellow crookneck are harvested and consumed during the
growing season, while the skin is still tender and the fruit
relatively small. Winter squash such as butternut, hubbard,
buttercup, ambercup, acorn, spaghetti squash, and pumpkin are
harvested at maturity, generally the end of summer, cured to further
harden the skin, and stored in a cool place for eating later. They
generally require longer cooking time than summer squash.
\3\ USDA/National Agricultural Statistics Service (NASS),
Vegetables 2006 Summary, January 2007.
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As shown in table 1, U.S. squash production increased from 398,800
MT in 2002 to 430,100 MT in 2006, an annual growth rate of about 1.6
percent. Similarly, consumption increased from 605,970 MT to 665,730
MT. During the same period, U.S. squash imports increased from 210,930
MT in 2002 to 240,590 MT in 2006. Mexico accounted by far for the
largest share of U.S. imports (95.6 percent), followed distantly by
Costa Rica (1.6 percent), and Canada (1.1 percent). Other minor
suppliers include Honduras, Panama, New Zealand, Guatemala, and
Nicaragua. The United States was a net importer throughout this period,
with average annual imports (over 234,000 MT) dwarfing exports (less
than 4,300 MT). Imports from Zambia will be small compared to an
already large import base.\4\
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\4\ Reliable production data are not available for Zambia.
Squash exported to the United States are to be grown in insect-
proof, pest-free greenhouses at approved production sites. These
sites are in the process of being constructed. The Zambian
Government expects to export around 400 MT of fresh squash to the
United States annually. It is not clear whether some additional
amount would be produced for export to other countries.
Table 1--U.S. Squash Production, Consumption, Price, Exports and Imports, 2002-2006
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Production Consumption
Year (MT) (MT) Price per MT Exports in MT Imports in MT
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2002............................ 398,800 605,970 $882 3,770 210,930
2003............................ 365,650 602,880 1,047 3,810 241,040
2004............................ 401,330 637,650 992 4,090 240,410
2005............................ 378,030 611,090 1,047 4,820 237,880
2006............................ 430,100 665,730 1,157 4,960 240,590
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5-year average (2002-2006).. 394,780 624,670 1,025 4,290 234,170
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Sources: USDA/NASS, Vegetables 2006 Summary, January 2007; wholesale prices are from USDA/NASS, Fresh market
vegetables prices and yield data, 2002-2006; trade data are from USDA/Foreign Agricultural Service, The Global
Trade Atlas: Global Trade Information Services, Inc., Country Edition, August 2007.
Impact of Potential Fresh Squash Imports
We estimate the impact of baby squash and baby courgettes imports
from Zambia on U.S. production, consumption, and prices using a net
trade welfare model. The data used were obtained from the Foreign
Agricultural Service (FAS); The Global Trade Atlas: Global Trade
Information Services, Inc., Country Edition, August 2007; and United
Nations' Food and Agriculture Organization FAOstat data (http://
faostat.fao.org). The demand and supply elasticities used are -0.66 and
0.12, respectively.\5\
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\5\ Jaime E. Malaga, Gary W. Williams, and Stephen W. Fuller,
``U.S.-Mexico fresh vegetable trade: the effects of trade
liberalization and economic growth,'' Agricultural Economics, Vol.
26 (October 2001): 45-55.
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Our analysis is in terms of the overall squash industry of the
United States. If data were available that would allow us to estimate
the impact of this rule only in terms of the markets for baby squash
and baby courgettes, we would expect the effects to be somewhat larger
than those reported here, but still insignificant.
We model three levels of squash exports to the United States from
Zambia: (1) 260 MT, average annual global exports of squash by Zambia
(2004-2006); (2) 400 MT, the amount of squash that the Government of
Zambia has projected would be exported to the United States; and (3)
1,000 MT, a quantity that is 2\1/2\ times Zambia's projected exports to
the United States.
Table 2 presents the changes that we estimate could result from the
final rule. These include annual changes in U.S. consumption,
production, wholesale price, consumer welfare, producer welfare, and
net welfare. The medium level of assumed squash exports to the United
States of 400 MT (as projected by the Government of Zambia) would
result in a decline of $0.89 per MT in the wholesale price of squash
and a fall in U.S. production of 41 MT. Consumption would increase by
359 MT. Producer welfare would decline by $347,180 and consumer welfare
would increase by $558,240, yielding an annual net benefit of about
$211,060. Other results are as shown in table 2 below.
Table 2--Estimated Impact of Squash Imports From Zambia on the United States Economy for Three Import Scenarios
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Assumed annual squash imports, MT...................... \1\ 260 \2\ 400 \3\ 1,000
Change in U.S. consumption, MT......................... 234 359 898
Change in U.S. production, MT.......................... -26 -41 -102
Change in wholesale price of squash, dollars per MT.... -$0.58 -$0.89 -$2.22
Change in consumer welfare............................. $362,820 $558,240 $1,396,210
Change in producer welfare............................. -$225,670 -$347,180 -$867,890
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[[Page 76866]]
Annual net benefit................................. $137,150 $211,060 $528,330
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Note: The baseline data used are 5-year annual averages for production, consumption, prices, exports, and
imports, as reported in the last row of table 1. The demand and supply elasticities used are -0.66 and 0.12,
respectively (Jaime E. Malaga, Gary W. Williams, and Stephen W. Fuller, ``U.S.-Mexico fresh vegetable trade:
the effects of trade liberalization and economic growth,'' Agricultural Economics, Vol. 26 (October 2001): 45-
55).
\1\ Three-year (2004 to 2006) average total squash exports by Zambia.
\2\ Annual exports of fresh baby squash and baby courgettes to the United States, as projected by the Government
of Zambia.
\3\ Two-and-one-half times the projected level of exports of baby squash and baby courgettes by Zambia to the
United States.
In all three scenarios, consumer welfare gains would outweigh
producer welfare losses. Even in the third scenario, in which we assume
imports would total 2\1/2\ times the level projected by the Government
of Zambia, the decline in producer welfare would represent only about
two-tenths of 1 percent of cash receipts received from the sale of
domestic squash products. The price decline in this third scenario also
would be only about two-tenths of 1 percent. Thus, our analysis
indicates that U.S. entities will be unlikely to be significantly
affected by this rule.
Impact on Small Entities
The Small Business Administration (SBA) has established guidelines
for determining which types of firms are considered to be small
entities under the Regulatory Flexibility Act. This rule could affect
U.S. producers of fresh vegetables (North American Industry
Classification System 111219) and some importers of fresh squash.
Vegetable-producing establishments are classified as small if their
annual receipts are not more than $750,000.\6\ According to the 2002
Census of Agriculture, there were 11,035 squash operations with
production valued at $288 million. These facilities are considered to
be small if their annual receipts are not more than $750,000. Over 98.6
percent of these operations (10,883) are considered to be small while
the rest (152) are considered large. Based on share of acreage (nearly
60 percent of the total), the small operations had combined annual cash
receipts of about $168 million and an average income of about $15,500,
while the large operations had combined sales of about $120 million
with an average income of about $787,900. As shown in table 3, the
impact of potential squash imports on U.S. producers as a result of
this rule will be small. The decrease in producer welfare per small
entity is less than $47, or about 0.30 percent of average annual sales
of small entities, when we assume 1,000 MT of squash are exported to
the United States from Zambia (2\1/2\ times Zambia's projected annual
exports).
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\6\ SBA, Small business size standards matched to the North
American Industry Classification System 2002, effective October 2007
(http://www.sba.gov/size/sizetable2002.html).
Table 3--Economic Impact of Potential Squash Imports From Zambia on U.S.
Small Entities, Assuming Annual Exports of 1,000 MT to the United
States, 2006 Dollars
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Total decline in producer welfare \1\ -$867,890
Decrease in welfare incurred by small -$506,850
entities \2\.
Average decrease per acre, small -$12.18
entities \3\.
Average decrease per small entity \4\ -$46.50
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Average decrease as percentage of -0.30 percent
average sales, small entities
\5\.
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\1\ From table 2.
\2\ Change in producer welfare multiplied by 58.4 percent, the
percentage of total acreage planted by producers with annual revenues
of not more than $750,000, that is, small entities. We assume that the
change in producer welfare would be proportional to acreage share.
\3\ Decrease in producer welfare for small entities divided by 41,619,
the number of acres planted by small entities.
\4\ Average decrease per acre multiplied by 3.82, the average number of
acres per small entity.
\5\ Average decrease per small entity divided by $15,500, the average
annual revenue per small entity.
Again, table 3 considers a level of importation that is 2\1/2\
times the projected imports of baby squash and baby courgettes; at
expected levels of importation, the expected economic impacts would be
even smaller. In addition, this analysis assumes that gains to Zambian
exporters do not come at the expense of any exporting countries; if any
displacement occurs, the impact of the rule would be reduced further.
Under these circumstances, the Administrator of the Animal and
Plant Health Inspection Service has determined that this action will
not have a significant economic impact on a substantial number of small
entities.
Executive Order 12988
This final rule allows baby squash and baby courgettes to be
imported into the United States from Zambia. State and local laws and
regulations regarding baby squash and baby courgettes imported under
this rule will be preempted while the fruit is in foreign commerce.
Fresh vegetables are generally imported for immediate distribution and
sale to the consuming public, and remain in foreign commerce until sold
to the ultimate consumer. The question of when foreign commerce ceases
in other cases must be addressed on a case-by-case basis. No
retroactive effect will be given to this rule, and this rule will not
require administrative proceedings before parties may file suit in
court challenging this rule.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.), the information collection or recordkeeping requirements
included in this rule have been approved by the Office of Management
and Budget (OMB) under OMB control number 0579-0347.
E-Government Act Compliance
The Animal and Plant Health Inspection Service is committed to
compliance with the E-Government Act to promote the use of the Internet
and other information technologies, to
[[Page 76867]]
provide increased opportunities for citizen access to Government
information and services, and for other purposes. For information
pertinent to E-Government Act compliance related to this rule, please
contact Mrs. Celeste Sickles, APHIS' Information Collection
Coordinator, at (301) 851-2908.
List of Subjects in 7 CFR Part 319
Coffee, Cotton, Fruits, Imports, Logs, Nursery stock, Plant
diseases and pests, Quarantine, Reporting and recordkeeping
requirements, Rice, Vegetables.
0
Accordingly, we are amending 7 CFR part 319 as follows:
PART 319--FOREIGN QUARANTINE NOTICES
0
1. The authority citation for part 319 continues to read as follows:
Authority: 7 U.S.C. 450, 7701-7772, and 7781-7786; 21 U.S.C. 136
and 136a; 7 CFR 2.22, 2.80, and 371.3.
0
2. A new Sec. 319.56-48 is added to read as follows:
Sec. 319.56-48 Conditions governing the entry of baby squash and baby
courgettes from Zambia.
Baby squash (Curcurbita maxima Duchesne) and baby courgettes (C.
pepo. L.) measuring 10 to 25 millimeters (0.39 to 0.98 inches) in
diameter and 60 to 105 millimeters (2.36 to 4.13 inches) in length may
be imported into the continental United States from Zambia only under
the conditions described in this section. These conditions are designed
to prevent the introduction of the following quarantine pests:
Aulacaspis tubercularis, Dacus bivitattus, Dacus ciliatus, Dacus
frontalis, Dacus lounsburyii, Dacus punctatifrons, Dacus vertebratus,
Diaphania indica, Helicoverpa armigera, and Spodoptera littoralis.
(a) Approved greenhouses. The baby squash and baby courgettes must
be grown in Zambia in insect-proof, pest-free greenhouses approved
jointly by the Zambian national plant protection organization (NPPO)
and APHIS.
(1) The greenhouses must be equipped with double self-closing
doors.
(2) Any vents or openings in the greenhouses (other than the double
self-closing doors) must be covered with 1.6 mm screening in order to
prevent the entry of pests into the greenhouse.
(3) The greenhouses must be inspected periodically by the Zambian
NPPO or its approved designee to ensure that sanitary procedures are
employed to exclude plant pests and diseases and to verify that the
screening is intact.
(4) The greenhouses also must be inspected monthly for the
quarantine pests listed in the introductory text of this section by the
Zambian NPPO or its approved designee, beginning 2 months before
harvest and continuing for the duration of the harvest. APHIS must be
allowed to inspect or monitor the greenhouses during this period as
well. If, during these inspections, any of the quarantine pests listed
in the introductory text of this section is found inside the
greenhouse, the Zambian NPPO will immediately prohibit that greenhouse
from exporting baby squash or baby courgettes to the United States and
notify APHIS of the action. The prohibition will remain in effect until
the Zambian NPPO and APHIS agree that the risk has been mitigated.
(b) Trapping for Dacus spp. fruit flies. Trapping for Dacus
bivitattus, Dacus ciliatus, Dacus frontalis, Dacus lounsburyii, Dacus
punctatifrons, and Dacus vertebratus (referred to in paragraph (b) of
this section, collectively, as Dacus spp. fruit flies) is required both
inside and outside the greenhouse. Trapping must be conducted beginning
2 months before harvest and continue for the duration of the harvest.
(1) Inside the greenhouse. Approved fruit fly traps with an
approved protein bait must be placed inside the greenhouses at a
density of four traps per hectare, with a minimum of at least two traps
per greenhouse. The traps must be serviced at least once every 7 days.
If a Dacus spp. fruit fly is found in a trap inside the greenhouse, the
Zambian NPPO will immediately prohibit that greenhouse from exporting
baby squash or baby courgettes to the United States and notify APHIS of
the action. The prohibition will remain in effect until the Zambian
NPPO and APHIS agree that the risk has been mitigated.
(2) Outside the greenhouse. (i) Approved fruit fly traps with an
approved protein bait must be placed inside a buffer area 500 meters
wide around the greenhouse at a density of 1 trap per 10 hectares, with
a total of at least 10 traps. At least one of these traps must be
placed near the greenhouse. These traps must be serviced at least once
every 7 days.
(ii) No shade trees are permitted within 10 meters of the entry
door of the greenhouse, and no fruit fly host plants are permitted
within 50 meters of the entry door of the greenhouse. While trapping is
being conducted, no fruit fly host material (such as fruit) may be
brought into the greenhouse or be discarded within 50 meters of the
entry door of the greenhouse. Ground applications of an approved
protein bait spray for the Dacus spp. fruit flies must be used on all
shade trees and host plants within 200 meters surrounding the
greenhouse every 6 to 10 days starting at least 30 days before and
during harvest.
(iii) Dacus spp. fruit fly prevalence levels lower than 0.7 flies
per trap per week (F/T/W) must be maintained outside the greenhouse for
the duration of the trapping. If the F/T/W is 0.7 or greater outside
the greenhouse, the Zambian NPPO will immediately prohibit that
greenhouse from exporting baby squash or baby courgettes to the United
States and notify APHIS of the action. The prohibition will remain in
effect until the Zambian NPPO and APHIS agree that the risk has been
mitigated.
(3) Records and monitoring. The Zambian NPPO or its approved
designee must maintain records of trap placement, trap servicing, and
any Dacus spp. captures. The Zambian NPPO must maintain an APHIS-
approved quality control program to audit the trapping program. APHIS
must be given access to review 1 year's worth of trapping data for any
approved greenhouse upon request.
(c) Packinghouse procedures. Baby squash and baby courgettes must
be packed within 24 hours of harvest in a pest-exclusionary
packinghouse. No shade trees are permitted within 10 meters of the
entry door of the packinghouse, and no fruit fly host plants are
permitted within 50 meters of the entry door of the packinghouse. In
addition, during packing, no fruit fly host material other than the
baby squash and baby courgettes may be brought into the packinghouse,
and no fruit fly host material may be discarded within 50 meters of the
entry door of the packinghouse. The baby squash or baby courgettes must
be safeguarded by a pest-proof screen or plastic tarpaulin while in
transit to the packinghouse and while awaiting packing. The baby squash
or baby courgettes must be packed in insect-proof cartons for shipment
to the United States. These cartons must be labeled with the identity
of the greenhouse. While packing the baby squash or baby courgettes for
export to the United States, the packinghouse may only accept baby
squash or baby courgettes from approved greenhouses. These safeguards
must remain intact until the arrival of the baby squash or baby
courgettes in the United States. If the safeguards do not remain
intact, the
[[Page 76868]]
consignment will not be allowed to enter the United States.
(d) Commercial consignments. Baby squash and baby courgettes from
Zambia may be imported in commercial consignments only.
(e) Phytosanitary certificate. Each consignment of baby squash and
baby courgettes must be accompanied by a phytosanitary certificate of
inspection issued by the Zambian NPPO with an additional declaration
reading as follows: ``These baby squash or baby courgettes were
produced in accordance with 7 CFR 319.56-48.''
(Approved by the Office of Management and Budget under control
number 0579-0347)
Done in Washington, DC, this 12th day of December 2008.
Kevin Shea,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. E8-30080 Filed 12-17-08; 8:45 am]
BILLING CODE 3410-34-P