Federal Register - February 24, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 35 / Wednesday, February 24, 2021 / Rules and Regulations
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favored by eligible first handlers and importers covered under the Order, and 2 ascertain whether the continuance of frozen mangos as a covered commodity in the Order is favored by eligible first handlers and importers including frozen mango importers covered under the Order. The results were announced on October 20, 2020, stating that 60
percent of mango first handlers and importers voting were in favor of continuing the Order. On the question as to whether to continue frozen mangos as a covered commodity in the Order, 42
percent voted to keep frozen mangos in the Order, 49 percent voted to eliminate frozen mangos and 9 percent did not vote on this question. Of those representing frozen mangos, 83 percent voted to eliminate frozen mangos as a covered commodity.
Section 522 of the 1996 Act 7 U.S.C.
7421 and 1206.72 of the Order 7 CFR
1206.72 provide that if the Secretary determines that provisions of the Order are not favored by persons voting in a referendum, the Secretary shall terminate those provisions. In accordance with the 1996 Act and Order, this rule removes the provisions of frozen mangos as a covered commodity under the Order including:
Removing definitions for frozen mangos and foreign processor of frozen mangos;
reducing the Boards membership from 21 to 18 by eliminating two importers of frozen mangos and one foreign processor of frozen mangos; removing assessment collection provisions for frozen mangos at a rate of $0.01 per pound and thereby eliminating assessments on frozen mango imports;
and removing the exemption of assessment for importers who import less than 200,000 pounds of frozen mangos annually. In addition, this rule makes clarifying and conforming changes to other provisions of the Order.
Order Provisions In accordance with 1206.72, the following changes are necessary to terminate and remove the provisions regarding frozen mangos from the Order.
In addition, 1206.6 and 1206.9 which define the terms first handler and importer, respectively, are revised to add the reference that first handlers and importers, respectively, must receive or import 500,000 or more pounds of mangos; this volume is added for the purpose of clarity.
Section 1206.8, which defines the term foreign producers and foreign processor of frozen mangos or foreign processor, is revised to remove the definitions of foreign processor of frozen mangos or foreign processor
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because they are no longer covered under the Order. The definition for foreign producer will remain.
The definition of mangos in 1206.11 is revised to mean all fresh fruit of Mangifera indica L. of the family Anacardiaceae. The term frozen mangos is removed as it is no longer a covered commodity.
Section 1206.30, which establishes the Boards membership, is revised to reduce its size from 21 to 18 members due to the removal of three members;
i.e., two importers of frozen mangos and one foreign processor. The three members are removed from the Board once this rule is effective. The remaining 18-member Board will be comprised of 8 importers, 1 first handler, 2 domestic producers, and 7
foreign producers. In addition, eligibility requirements for Board members from the frozen mango industry are removed, and only those eligibility requirements for the first handler and fresh mango importers remain. Lastly, the four Importer Districts that were unintentionally removed from the CFR when this section was amended, are restored to section 1206.30 as paragraphs b14.
Section 1206.31, which describes the procedures for nominating and appointing Board members to the Board, is revised to remove procedures for nominating foreign processors and importers of frozen mangos. Section 1206.32, which specifies that Board members serve for a 3-year term of office and may serve a maximum of two consecutive 3-year terms, is revised to remove the references to importers of frozen mangos and foreign processors.
Section 1206.34 specifies quorum requirements for Board meetings, and with the reduction of the Board from 21
to 18, a decrease in quorum requirements is necessary. Therefore, this section is revised to specify that a quorum at a Board meeting exists when at least 10 of the 18 Board members are present.
Section 1206.42 specifies the assessment rate for fresh mangos and frozen mangos. Paragraph b is revised to remove the provisions assessing importers of frozen mangos one cent $0.01 per pound, and paragraph d2, which includes the Harmonized Tariff Schedule HTS of the United States that applies to imported frozen mangos number 0811.90.5200, is removed from the Order. Assessments on frozen mango importers shall be terminated.
The termination of assessment collection on frozen mango importers will be effective one day after publication of this rule.
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In 1206.43, paragraphs a and b are revised to remove references to frozen mango exemptions as frozen mangos are no longer a covered commodity.
Subpart B of part 1206 specifies procedures for conducting a referendum. In 1206.101, paragraphs c, d, and e are revised to delete the references to eligibility of frozen mango importers to vote in referenda, as frozen mangos are no longer a covered commodity, and to restore definitions prior to when this section was amended.
Finally, this rule updates the OMB
control number specified in 1206.108
from 05810209 to 05810093.
Regulatory Flexibility Act Analysis and Paperwork Reduction Act In accordance with the Regulatory Flexibility Act RFA 5 U.S.C. 601
612, AMS is required to examine the impact of the 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 2019 Customs 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 2019 Customs data,1 there are about 100 importers of fresh mangos and 70 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 action will remove frozen mango importers from the requirements associated with this research and promotion Order and result in a regulatory relaxation, and is therefore expected to reduce costs for frozen mango importers.
This rule amends AMSs regulations regarding the mango research and promotion program to remove frozen mangos as a covered commodity under the Order. A continuance referendum was conducted September 21 through October 9, 2020, among eligible first 1 https www.cbp.gov/trade/automated.
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