[Federal Register Volume 64, Number 112 (Friday, June 11, 1999)]
[Proposed Rules]
[Pages 31512-31518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14844]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 64, No. 112 / Friday, June 11, 1999 /
Proposed Rules
[[Page 31512]]
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DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
7 CFR Part 319
[Docket No. 98-054-1]
RIN 0579-AB02
Importation of Unmanufactured Wood Articles From Mexico
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Proposed rule.
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SUMMARY: We are proposing to add restrictions on the importation of
pine and fir logs and lumber, as well as other unmanufactured wood
articles, from Mexico. This change would require that these wood
articles from Mexico meet certain treatment and handling requirements
to be eligible for importation into the United States. We believe this
action is necessary to prevent the introduction into the United States
of dangerous plant pests, including forest pests, with unmanufactured
wood articles from Mexico.
DATES: Consideration will be given only to comments received on or
before August 10, 1999.
ADDRESSES: Please send an original and three copies of your comments to
Docket No. 98-054-1, Regulatory Analysis and Development, PPD, APHIS,
suite 3C03, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please
state that your comments refer to Docket No. 98-054-1. Comments
received may be inspected at USDA, room 1141, South Building, 14th
Street and Independence Avenue SW., Washington, DC, between 8 a.m. and
4:30 p.m., Monday through Friday, except holidays. Persons wishing to
inspect comments are requested to call ahead on (202) 690-2817 to
facilitate entry into the comment reading room.
FOR FURTHER INFORMATION CONTACT: Ms. Jane E. Levy, Senior Staff
Officer, Port Operations, PPQ, APHIS, 4700 River Road Unit 60,
Riverdale, MD 20737-1236; (301) 734-8295.
SUPPLEMENTARY INFORMATION:
Background
The unrestricted importation of logs, lumber, and other
unmanufactured wood articles into the United States could pose a
significant hazard of introducing plant pests detrimental to
agriculture and to natural, cultivated, and urban forests. ``Subpart--
Logs, Lumber, and Other Unmanufactured Wood Articles,'' contained in 7
CFR 319.40-1 through 319.40-11 (and referred to below as the wood
subpart), is intended to mitigate the plant pest risk presented by the
importation of logs, lumber, and other unmanufactured wood articles.
Currently, Sec. 319.40-3(a) provides a general permit for the
importation of unmanufactured wood articles (other than articles from
certain subfamilies of the family Rutaceae) into the United States from
Canada and from States in Mexico adjacent to the United States/Mexico
border. A general permit means the written authorization provided in
Sec. 319.40-3; no separate paper permit is required. Under a general
permit, unmanufactured wood articles from Canada and from Mexican
States adjacent to the U.S. border may be imported into the United
States provided they are accompanied by an importer document stating
that the articles are derived from trees harvested in, and have never
been moved outside, Canada or adjacent States in Mexico, and subject to
the inspection and other requirements in Sec. 319.40-9. Unmanufactured
wood articles imported into the United States from adjacent States in
Mexico in accordance with Sec. 319.40-3(a) include, but are not limited
to, logs, lumber, railroad ties, fence posts, firewood, solid wood
packing material, and mesquite wood for cooking.
In contrast, unmanufactured wood articles from Mexican States that
are not adjacent to the United States/Mexico border are subject to the
more rigorous requirements of the wood subpart for importing wood
articles from all other countries except Canada. These more rigorous
requirements include requirements for treatment and other special
handling to ensure freedom from plant pests. Section 319.40-5 provides
import and entry requirements for specified regulated articles such as
bamboo timber (Sec. 319.40-5(a)), tropical hardwoods (Sec. 319.40-
5(c)), temperate hardwoods (Sec. 319.40-5(d)), and railroad ties
(Sec. 319.40-5(f)). Section 319.40-6 provides universal importation
options, including treatment and handling options, for unmanufactured
wood articles imported into the United States, including logs
(Sec. 319.40-6(a)), lumber (Sec. 319.40-6(b)), wood chips and bark
chips (Sec. 319.40-6(c)), wood mulch, humus, compost, and litter
(Sec. 319.40-6(d)), and cork and bark (Sec. 319.40-6(e)).
The less restrictive importation requirements for unmanufactured
wood articles imported into the United States from Canada and the
States of Mexico adjacent to the United States/Mexico border are based
on the premise that the forests in the United States share a common
forested boundary with Canada and adjacent States in Mexico and,
therefore, share, to a reasonable degree, the same forest pests.
However, in February 1998, the Forest Service, U.S. Department of
Agriculture (USDA), published a study entitled ``Pest Risk Assessment
of the Importation into the United States of Unprocessed Pinus and
Abies Logs from Mexico.'' \1\ This pest risk assessment was requested
by the Animal and Plant Health Inspection Service (APHIS), USDA, to
evaluate the forest insect and pathogen complexes in the forests of the
United States and the adjacent States of Mexico. The Forest Service's
pest risk assessment shows that a significant pest risk exists in the
movement of raw wood material into the United States from the adjacent
States of Mexico. This conclusion has also been confirmed by USDA
inspectors finding a number of dangerous plant pests on wood imports
from adjacent States in Mexico during inspections at ports of entry
along the United States/Mexico border.
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\1\ For copies of this pest risk assessment, contact the person
listed under FOR FURTHER INFORMATION CONTACT or access the
assessment on the Forest Service's Forest Products Laboratory Web
site at Internet address http://www.fpl.fs.fed.us/documents/fplgtr/
fplgtr104.pdf
_____________________________________-
The Forest Service's pest risk assessment clearly indicates that
the mountain top forests of the adjacent States in Mexico, from which
unmanufactured wood articles are moving into the United States, should
be viewed as biological islands, not as an extension of the U.S. forest
ecosystem. These biological islands
[[Page 31513]]
contain their own unique combination of forest pests, which are
different than those currently found in the United States. Those pests
have the potential to substantially harm U.S. forests if they become
established in the United States.
In its research, the Forest Service used pine and fir pests as
surrogates for determining the overall pest risk associated with all of
the native trees grown in these isolated biological forested regions in
Mexico. This method was used in order to keep the assessment
manageable. Timber species of pine and fir were chosen specifically
because: (1) They constitute the majority of the unmanufactured wood
articles imported into the United States from Mexico; and (2) the pest
complexes of pine and fir trees have been the focus of more research,
and are, therefore, better understood than the pest complexes for many
other genera of imported timber trees. APHIS concurs with the Forest
Service that extrapolation of this type of data is scientifically both
rational and defensible.
Based on the conclusions of the Forest Service's pest risk
assessment, we are proposing to amend the wood subpart in three ways.
First, we propose to limit the use of a general permit under
Sec. 319.40-3(a) for unmanufactured wood articles imported from the
adjacent States in Mexico. Under proposed Sec. 319.40-3(a), only
unmanufactured mesquite wood for cooking, unmanufactured wood for
firewood, and small, noncommercial packages of unmanufactured wood for
personal cooking or personal medicinal purposes would be allowed
importation under a general permit.\2\ Mesquite is a woody species that
is continuous on both sides of the United States/Mexico border and,
therefore, presents little foreign pest risk. Firewood would not pose a
significant pest risk because of its limited distribution and
consumption near the border. Small, noncommercial packages of
unmanufactured wood to be used for personal cooking or personal
medicinal purposes also would not pose a significant pest risk because
the packages would be limited in quantity and therefore easily
inspected, and likely would be distributed and consumed near the
border. Except as discussed below, all other unmanufactured wood
articles from the adjacent States of Mexico would be allowed into the
United States only in accordance with the importation and entry
requirements in place for unmanufactured wood articles from the rest of
Mexico and all other countries except Canada. This proposed rule would
result in a more consistent regulation of unmanufactured wood articles
from all the States of Mexico, as well as all other countries except
Canada.
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\2\ Other unmanufactured wood articles, such as solid and loose
wood packing material and bamboo timber, would continue to be
allowed importation into the United States under a general permit in
accordance with Sec. 319.40-3(b), (c), (d), and (e).
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Second, we propose to amend Sec. 319.40-5 to add an additional
treatment option for pine and fir lumber from Mexico. Currently, the
only treatment options for imported pine and fir lumber from Mexico are
heat treatment (under Sec. 319.40-7(c)) or heat treatment with moisture
reduction (under Sec. 319.40-7(d)) before importation into the United
States, as required by Sec. 319.40-6(b)(1); or heat treatment or heat
treatment with moisture reduction within 30 days after release from the
port of first arrival in the United States, at a U.S. facility
operating under a compliance agreement with APHIS, as required by
Sec. 319.40-6(b)(2). However, based on conclusions of the Forest
Service's pest risk assessment and on APHIS' evaluation of treatment
options, we are proposing to allow standard industry cut lumber made
from pine or fir species originating in Mexico to be imported into the
United States from any State of Mexico if, prior to arrival, that
lumber is 100 percent free of bark and fumigated with methyl bromide in
accordance with schedule T-312 contained in the Plant Protection and
Quarantine Treatment Manual, incorporated by reference at Sec. 300.1,
or with an initial methyl bromide concentration of at least 240 g/m\3\
with exposure and concentration levels adequate to provide a
concentration-time product of at least 17,280 gram-hours calculated on
the initial methyl bromide concentration. This treatment is effective
against the pine and fir pests identified in the Forest Service's pest
risk assessment.
Third, we propose to amend Sec. 319.40-5 to add an additional
treatment option, with a thickness requirement, to the importation of
railroad ties from Mexico. Currently, pursuant to Sec. 319.40-5(f),
railroad ties from nonborder States of Mexico must be completely free
of bark and accompanied by an importer document stating that the
railroad ties will be pressure treated within 30 days following the
date of importation to be eligible for importation into the United
States. Because of the proposed change to the general permit section of
the wood subpart described earlier, railroad ties from States of Mexico
adjacent to the U.S. border would no longer be eligible for importation
into the United States under a general permit. Based on conclusions of
the Forest Service's pest risk assessment, we propose to amend
Sec. 319.40-5 to provide an additional treatment option for the
importation of railroad ties from Mexico that would allow the
importation of railroad ties (cross-ties) originating from all States
in Mexico if they are 100 percent free of bark, no thicker than 8
inches, and fumigated with methyl bromide using the concentration
levels specified in the paragraph above. Railroad ties may continue to
be imported under current requirements that they be completely free of
bark and pressure-treated with a preservative approved by the U.S.
Environmental Protection Agency (EPA) within 30 days following the date
of importation. Under the existing requirements, we would also allow
Mexican railroad ties that are debarked in accordance with Sec. 319.40-
7(b) to be imported into the United States if the railroad ties have
been heat treated in accordance with Sec. 319.40-7(c).
These actions appear to be necessary to reduce the risk of the
introduction of dangerous plant pests on unmanufactured wood articles
moving from Mexico into the United States.
Use of Methyl Bromide
Methyl bromide is currently in widespread use as a fumigant. It is
proposed as a treatment option for standard industry cut lumber made
from pine or fir species and railroad ties from Mexico. The
environmental effects of using methyl bromide, however, are being
scrutinized by international, Federal, and State agencies. EPA, based
on its evaluation of data concerning the ozone depletion potential of
methyl bromide, published a final rule in the Federal Register on
December 10, 1993 (58 FR 65018-65082). That rule froze methyl bromide
production in the United States at 1991 levels and required the phasing
out of domestic use of methyl bromide by the year 2001. EPA's methyl
bromide regulations were issued under the authority of the Clean Air
Act. Recently, the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1999, amended
the Clean Air Act. The amendments provide that the production of methyl
bromide shall not terminate prior to January 1, 2005, and directs EPA
to promulgate new rules to reduce and terminate the production,
importation, and consumption of methyl bromide in accordance with the
phaseout schedule of the Montreal Protocol. The Montreal Protocol, an
international treaty governing the production and use of ozone-
depleting chemicals, provides for a phaseout of methyl bromide, with an
[[Page 31514]]
exemption for quarantine and preshipment uses, in developed countries
by the year 2005 and in developing countries, including Mexico, by the
year 2015. EPA has indicated that it will publish proposed and final
regulations to achieve production and importation reductions from the
1991 base levels of methyl bromide as follows: 25 percent reduction in
1999, 50 percent reduction in 2001, 70 percent reduction in 2003, 100
percent reduction in 2005. The Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act, 1999,
further provides a quarantine-use exemption for the production,
importation, consumption of methyl bromide to fumigate commodities
entering or leaving the United States for purposes of complying with
APHIS regulations. EPA has also indicated that it will work closely
with USDA, State agricultural departments, and other stakeholders to
define the preshipment and quarantine uses that will be exempt from the
phaseout. Our proposal assumes the continued availability of methyl
bromide for use as a fumigant for at least the next few years.
Nonetheless, APHIS is studying the effectiveness and environmental
acceptability of alternative treatments to prepare for the eventual
unavailability of methyl bromide fumigation.
Miscellaneous
We are also proposing to amend Sec. 319.40-5(f) to require that
pressure treatment of railroad ties be conducted at a U.S. facility
under compliance agreement with APHIS. This would affect railroad ties
imported from all countries except Canada. We propose this action to
help ensure compliance with the requirement that railroad ties must be
pressure treated within 30 days following the date of importation into
the United States.
In Sec. 319.40-3, paragraph (a) requires articles imported under
general permit to be accompanied by an importer document. The importer
document must state that the regulated articles are derived from trees
that were harvested in, and have never moved outside, Canada or States
in Mexico adjacent to the U.S. border. We are proposing to amend
Sec. 319.40-3(a) to remove the requirement that the importer document
must state that the articles have never been moved outside Canada or
States in Mexico adjacent to the U.S. border; the ``derived from''
requirement will remain. We are also proposing to amend Sec. 319.40-
3(a) to specify that the importer document only needs to accompany
commercial shipments of unmanufactured wood articles imported into the
United States under a general permit. With respect to Mexico, the
importer document requirement currently helps ensure that logs and
lumber from adjacent States in Mexico are not moved into other States
in Mexico for processing or milling and then imported into the United
States. However, because we are proposing to disallow movement under
general permit for most unmanufactured wood articles from adjacent
States in Mexico, this precaution would no longer be necessary. With
respect to Canada, it is highly improbable that wood articles from
Canada would be processed or milled in another country and then
returned to Canada for export to the United States. Therefore, we do
not believe that this requirement is necessary for unmanufactured wood
articles imported into the United States from Canada. Further, it is
not administratively feasible to require an importer document for
noncommercial shipments of mesquite wood for cooking and firewood, or
for small, noncommercial packages of unmanufactured wood for personal
cooking or personal medicinal uses imported into the United States from
States in Mexico adjacent to the United States border; therefore, we
propose to specify that commercial shipments of unmanufactured wood
articles imported from Canada, and commercial shipments of mesquite
wood for cooking and firewood imported from adjacent States in Mexico,
be accompanied by the importer document described above.
Executive Order 12866 and Regulatory Flexibility Act
This proposed rule has been reviewed under Executive Order 12866.
The rule has been determined to be significant for the purposes of
Executive Order 12866 and, therefore, has been reviewed by the Office
of Management and Budget.
We are proposing to amend the wood subpart by adding a treatment
option for pine and fir lumber and railroad ties imported from Mexico,
and by adding that unmanufactured wood articles from Mexico's border
States meet certain treatment and handling requirements to be eligible
for importation into the United States. We believe this action is
necessary to help prevent the introduction into the United States of
dangerous plant pests, including forest pests, with unmanufactured wood
articles from Mexico.
Because this proposal concerns unmanufactured wood articles, it
would affect the importation into the United States of both hardwood
and softwood species from Mexico. However, this analysis focuses on
softwood lumber, particularly pine and fir, since it comprises nearly
all the unmanufactured wood articles imported from Mexico. In 1997,
imports of U.S. lumber from Mexico consisted of about 98 percent
softwood species, by value, and only about 2 percent hardwood species.
Also in 1997, 97 percent of U.S. imports of unmanufactured softwood
articles from Mexico, not including solid wood packing material (SWPM)
and continuously shaped softwood (which may be manufactured), were
softwood lumber.
The value of U.S. production of softwood lumber in 1996 was about
$16 billion. U.S. production of softwoods that year totaled 33.9
billion board feet (bbf), compared to 12.7 bbf of hardwoods. Softwood
imports in 1996 reached 18.0 bbf, compared to exports of 1.9 bbf, for
net imports of 16.1 bbf. In other words, U.S. supply of softwoods, not
including stocks, was about 50 bbf (production + imports - exports),
with about one-third of the nation's supply imported.
Values of 1997 U.S. imports and exports of some major categories of
unmanufactured softwood articles are found in table 1, below. U.S.
trade with both the whole world and Mexico is shown, allowing some
insight into Mexico's share of U.S. imports, and the U.S. trade
position overall for these commodities. By far, the main commodity is
softwood lumber, for which U.S. imports, worth $7.3 billion, dwarfed
U.S. exports, worth $1.1 billion. Of the commodities included in table
1, 93 percent of imports were softwood lumber. Softwood lumber imports
from Mexico, at $97.6 million, represent 1 percent of total U.S.
softwood lumber imports.
Continuously shaped softwood is a category that includes both
manufactured and unmanufactured articles. Therefore, the value shown
for these imports from Mexico ($120 million) overstates the value of
imports that would be affected by the proposed rule. (On the other
hand, there are other unmanufactured wood articles that enter from
Mexico, such as solid wood packing material, that are not shown in this
table.) As indicated, one-fourth of continuously shaped softwood that
is imported into the United States comes from Mexico. As is the case of
softwood lumber, the value of U.S. imports of these articles is several
times greater than the value of exports.
The United States is a large net exporter of untreated softwood
logs and poles, with 1997 exports valued at about $1.5 billion,
compared to 1997 imports
[[Page 31515]]
of $61 million. Of these imports, Mexico is a minor supplier, providing
three percent of the total. Similarly, for fuel wood and railroad ties
(not impregnated),\3\ Mexico supplied only a small portion of total
U.S. imports in 1997: 6 percent, in each instance.
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\3\ Impregnated railway ties are not considered unmanufactured
wood articles.
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In summary, unmanufactured softwood articles imported into the
United States are predominantly lumber. Their value significantly
outweighs that of exports of U.S. softwood lumber. In 1997, about one
percent of softwood lumber imports, worth about $97.6 million, came
from Mexico. Shipments from Mexico of continuously shaped softwood are
of greater value ($120 million in 1997), but a large share may be
manufactured articles. For softwood logs and poles, the United States
is in a strong net export position, with the value of imports only
about four percent of the value of exports. Importations from Mexico of
softwood logs and poles, fuel wood, and railway ties represent small
percentages of total U.S. imports of these commodities.
Table 1.--U.S. Trade With Mexico and the World in Principal Unmanufactured Softwood Articles, 1997
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U.S. imports U.S. exports
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Wood category From the world From Mexico Percentage To the world To Mexico Percentage to
(dollars) (dollars) from Mexico (dollars) (dollars) Mexico
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Softwood lumber................................... 7,345,096,000 97,614,000 1 1,100,577,000 39,435,000 4
Softwood, continuously shaped..................... 488,057,000 120,340,000 25 111,756,000 8,310,000 7
Softwood logs and poles, not treated.............. 61,207,000 1,764,000 3 1,488,347,000 3,001,000 0.2
Fuel wood......................................... 6,220,000 377,000 6 5,601,000 170,000 3
Railway ties, not impregnated..................... 3,850,000 232,000 6 8,938,000 11,000 0.1
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Total......................................... 7,904,430,000 220,327,000 2.8 2,715,219,000 50,927,000 1.9
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Source: Foreign Agriculture Service's Global Agricultural Trade System using data from the United Nations Statistical Office.
Notes: Listed commodities have the following six-digit codes from the Harmonized Tariff Schedule of the United States: softwood lumber, 440710;
softwood, continuously shaped, 440910; softwood logs and poles, not treated, 440320; fuel wood, 440110; and railway ties, not impregnated, 440610.
Continuously shaped softwood includes articles processed in various ways, such as wood molding. Many of these articles are ``manufactured,'' and
therefore would not be affected by this proposed rule. Also, firewood included under the fuel wood category would not be affected by the proposed
rule.
Since potential effects of the proposed rule largely concern
imports of unmanufactured wood articles from Mexico's border States, it
is necessary to estimate their share of Mexico's exports to the United
States. Using data obtained from U.S. ports of entry, we estimate that
affected commodities worth about $31.3 million came from Mexico's
border States in 1997, which is slightly more than one-third of the
value of all shipments of these articles from Mexico (see table 2).
El Paso, TX, is the principal port through which affected articles
enter the United States. In 1997, approximately $81.7 million worth of
these articles (89 percent of unmanufactured wood articles imported
from Mexico) entered the United States through the port of El Paso. We
estimate that 30 percent of these articles originated in Mexico's
border States. Other U.S. border ports of entry report higher
percentages coming from Mexico's border States--50 percent for Laredo,
TX, and 100 percent for San Diego, CA, and Nogales, AZ--but the volumes
of articles shipped were much smaller. Not surprisingly, most
unmanufactured wood articles that enter through ports not near the
United States/Mexico border (e.g., shipments by sea) originate from
nonborder States in Mexico.
Table 2.--Value of U.S. Imports of Unmanufactured Wood Articles From All of Mexico and From Mexican States
Adjacent to the United States, by Port of Entry, 1997
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Estimated
Estimated value of proportion of Estimated value of
imports from all shipments from imports from
U.S. port of entry of Mexico Mexico's border Mexico's border
(dollars) States States (dollars)
(percentage)
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El Paso, TX......................................... 81,730,000 30 24,519,000
San Diego, CA....................................... 5,551,000 100 5,551,000
Laredo, TX.......................................... 1,859,000 50 929,500
Portland, OR........................................ 1,021,000 0 0
San Francisco, CA................................... 735,000 0 0
Los Angeles, CA..................................... 591,000 0 0
Nogales, AZ......................................... 341,000 100 341,000
Mobile, AL.......................................... 80,000 0 0
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Total........................................... 91,908,000 .................. 31,340,500
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Sources: Foreign Agriculture Service, Forest and Fishery Products Division, for the estimated values of imports;
Plant Protection and Quarantine, APHIS, for the estimated proportion of shipments from Mexico's border States.
Note: Percentages of imports estimated as originating in Mexico's border states are based on numbers of
shipments. Therefore, estimated values in the last column do not account for differences in shipment values.
Available data does not permit a more accurate estimation of values. Also, shipments of unmanufactured
hardwood articles that may be included in these values are assumed to be very minor.
[[Page 31516]]
The significance of these levels of import can be put in
perspective by comparing them to U.S. production and trade levels
overall. Unmanufactured wood articles include a variety of commodities,
but the value of softwood lumber production in the United States offers
a reasonable basis for comparison, since the major timber species that
would be affected by the proposed rule are pine and fir. When
continuously shaped softwood articles are not considered, less than 2
percent (about 1.4 percent) of unmanufactured softwood articles
imported into the United States came from Mexico in 1997 (see table 1).
Assuming imports contribute about one-third of total U.S. supply,
imports from Mexico would, therefore, amount to about 0.5 percent of
the U.S. supply of unmanufactured softwood articles. Further, if about
one-third of Mexico's shipments originate in Mexico's border States,
shipments from the border States would represent about 0.5 percent of
unmanufactured softwood articles imported by the United States, or
about 0.15 percent of U.S. supply.
Mention should be made of SWPM, such as wooden pallets, crates,
packing blocks, and dunnage. This packing material is used to prevent
damage to cargo during shipment. Currently, SWPM originating in
Mexico's border States and Canada may contain bark; SWPM entering the
United States from anywhere else in the world must be without bark or
be heat treated, fumigated, or treated with preservatives. In addition,
SWPM from China has additional requirements (see Sec. 319.40-5(g)). The
proposed rule would require that SWPM restrictions for Mexico's border
States be the same as for the rest of the world except Canada and
China.
An informal survey of the ports of entry shown in table 2 found
that a negligible amount of SWPM that is untreated or not free of bark
enters the United States from Mexico. None is reported to enter through
El Paso, TX, San Diego, CA, San Francisco, CA, Los Angeles, CA, or
Nogales, AZ, and less than 1 percent is reported for Laredo, TX, and
Portland, OR. (No contact was made with Mobile, AL.) Clearly, nearly
all SWPM from Mexico's border States already meets the entry
requirements that would be imposed by this proposed rule. Therefore,
potential economic effects with respect to SWPM imports need not be
given further consideration.
Economic Consequences
Two parts of the proposed rule could have an impact on U.S. imports
of unmanufactured wood articles from Mexico: (1) Adding methyl bromide
fumigation as a treatment option for pine and fir lumber and railroad
ties from Mexico; and (2) placing unmanufactured wood articles from
Mexico's border States under the same treatment requirements, in
general, as the rest of the Mexico.
Adding Methyl Bromide Fumigation Option for Pine and Fir Lumber and
Railroad Ties
For railroad ties from nonborder States of Mexico, current
regulations require that the ties be completely debarked and either
heat treated prior to importation or pressure treated within 30 days
following importation. Under this proposed rule, fumigation would
become an available treatment option. Virtually all railroad ties
imported into the United States from Mexico are pressure treated for
commercial reasons (i.e., in addition to eliminating pests, it protects
the ties from decay). We expect that this would continue, and that few
importers would utilize the proposed fumigation method. In order to
comply with the wood subpart, importers may choose to fumigate railroad
ties prior to importation if the railroad ties will be pressure treated
beyond 30 days following importation. In any event, importations of
railroad ties from Mexico represent a small percentage of total U.S.
imports of railroad ties (6 percent of total U.S. imports, valued at
$232,000). Therefore, we expect that adding methyl bromide fumigation
as a treatment option would have very little or no impact on importers
of railroad ties.
For pine and fir lumber imported from nonborder States of Mexico,
treatments available under the current regulations are heat treatment
and heat treatment with moisture reduction. Under this proposed rule,
fumigation would become an available treatment method. Kiln drying is a
type of heat treatment with moisture reduction, and is the most common
method used to treat lumber from Mexico. Kiln drying is used almost
exclusively over other treatments for lumber because kiln drying is the
industrial standard and it increases the economic value of the wood.
For this reason, this analysis focuses on comparing the most common
method, kiln drying, to the proposed alternative, methyl bromide
fumigation.
In 1997, softwood lumber imported from Mexico cost an average of
$318 per cubic meter ($750.48 per thousand board feet), according to
data compiled by the Foreign Agricultural Service, USDA. This figure is
higher than average domestic unmanufactured green softwood prices of
$137.71 per cubic meter ($325 per thousand board feet) in Northern
California because: (1) Higher valued ponderosa pine constitutes a
large percentage of imports from Mexico; (2)lumber imported from Mexico
is mostly ``shop grade'' lumber, often used for making molding; (3)
reported prices of lumber imported from Mexico may include delivery
costs (F.O.B. delivered), whereas prices for domestic lumber do not
(F.O.B. mill); and (4) some of the lumber imported from Mexico may
already be kiln dried, which commands a higher price.\4\
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\4\ Based on communication with the Foreign Agricultural
Service, USDA.
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Costs associated with kiln drying pine and fir lumber range between
approximately $12 and $20 per cubic meter. In comparison, methyl
bromide fumigation is reported to cost about one-third of this amount,
or between $4.60 and $6.90 per cubic meter.\5\ There is not an
appreciable difference in the time required to apply the two
treatments. Methyl bromide fumigation of lumber requires 2 days for the
actual treatment and up to 2 days for setup and dismantling and airing
of the cargo. Kiln drying of lumber takes 3 to 4 days.
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\5\ Estimated costs for kiln drying are based on communication
with the Forest Products Laboratory, Forest Service, USDA. Estimated
costs for fumigation are based on communications with fumigation
companies operating at California ports and the Port of Baltimore.
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At first glance, it would appear that there could be cost savings
for Mexican exporters of pine and fir lumber to the United States--and
potentially lower prices for U.S. importers--by replacing kiln drying
with methyl bromide fumigation. However, kiln drying serves other
commercial purposes besides satisfying phytosanitary requirements. U.S.
importers may prefer kiln dried lumber, whereby fumigation would only
result in an unnecessary additional cost. Information is not available
to estimate the percentage of imports that would be fumigated instead
of kiln dried.
Irrespective of the proposed addition of methyl bromide as a
treatment option, any potential costs of this proposed rule for
producers and consumers in the United States are likely to be very
minor. As discussed above, the value of softwood lumber imported from
Mexico is estimated to be only 0.5 percent of the value of the U.S.
supply of softwood lumber. If it happens that kiln drying remains the
preferred treatment alternative after fumigation is allowed, most
shipments of pine and fir lumber imported into the United States from
nonborder States of Mexico would not be affected.
[[Page 31517]]
No Longer Exempting Unmanufactured Wood Articles From Mexico's
Border States
As a result of this proposed rule, unmanufactured wood articles
from Mexico's border States would be subject to the same importation
and entry requirements as unmanufactured wood articles from the rest of
Mexico (except for mesquite wood for cooking and firewood and small,
noncommercial packages of unmanufactured wood for personal cooking or
medicinal purposes). This change would have its primary impact on
softwood lumber, which constitutes the vast majority of all
unmanufactured wood articles imported from Mexico's border States.
Currently, softwood lumber from Mexico's border States can be
imported without restriction, provided that the lumber was derived from
trees harvested in Mexico's border States and has never been moved
outside those States. Under this proposal, lumber from Mexico's border
States would have to be either heat treated, heat treated with moisture
reduction, or fumigated with methyl bromide. As with lumber from the
rest of Mexico, the most likely treatments chosen would be kiln drying,
at a cost of $12 to $20 per cubic meter, or methyl bromide fumigation,
which could be done for, at most, one-third the cost of kiln drying.
As stated previously in this document, the total value of
unmanufactured wood articles imported from Mexico's border States in
1997 was approximately $31.3 million; almost all of these imports were
softwood lumber. If we assume that all unmanufactured wood articles
imported from Mexico's border States are untreated, and would be kiln
dried or fumigated to comply with this proposed rule, the impact of
requiring treatment would range between $565,000 and $1.6 million,
depending on whether most importers choose to kiln dry or fumigate the
wood. (This calculation was made by first assuming that all
unmanufactured wood articles imported from Mexico's border States in
1997 were softwood lumber, and then by using the value of $318 per
cubic meter of softwood lumber to arrive at a total of 98,428 cubic
meters of softwood lumber imported from Mexico's border States,
multiplied by the midpoint in the range of costs for kiln drying and
fumigation.)
Some of the lumber imported from Mexico's border States may already
be kiln dried and would not require additional treatment as a result of
this proposed rule. We do not have data to estimate the quantity of
lumber imports from Mexico's border States that is already kiln dried
nor what percentage of imports would be fumigated rather than kiln
dried under this proposal. We welcome public comments with information
that would help us more precisely estimate total potential treatment
costs.
This proposed rule would result in small additional cost for an
extremely small fraction of the U.S. supply of unmanufactured softwood
articles. The benefit of the proposed rule is greater protection of
U.S. forests. The potential for exotic pest introduction via imports of
unmanufactured wood articles necessitates rigorous mitigation measures.
The cost to producers and consumers could range in the millions of
dollars if these measures are not taken.\6\ The cost of treating
unmanufactured wood articles imported from Mexico's border States is
small, compared to the possible consequences of not changing existing
regulations.
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\6\ Estimates of economic losses if representative insects and
pathogens of concern were introduced into the United States are in
the ``Pest Risk Assessment of the Importation into the United States
of Unprocessed Pinus and Abies Logs from Mexico,'' referred to
previously in this document. Estimated costs of introduction range
from less than $1 million to more than $50 million, depending on the
pest. To obtain copies of this pest risk assessment, see the
instructions under footnote 1 of this document.
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Regulatory Flexibility Analysis
The Regulatory Flexibility Act requires that APHIS specifically
consider the economic impact of the proposed rule on small entities.
The Small Business Administration (SBA) has established size criteria
by Standard Industrial Classification for determining which economic
entities meet the definition of a small firm. Data from the SBA was
used to estimate the number of small entities potentially affected by
this proposed rule.
The proposed rule would add a treatment option for railroad ties
and pine and fir lumber from Mexico, and would add treatment and
handling requirements for logs, lumber, and other unmanufactured wood
articles imported from States in Mexico adjacent to the U.S. border.
Entities most likely to be affected by the proposed rule are those that
import pine and fir lumber. These entities include sawmills, lumber
wholesalers, lumber retailers, wood article manufacturers, and general
contractors of home construction. The SBA classifies sawmills and wood
article manufacturers as small entities if fewer than 500 people are
employed. Wood wholesalers and retailers are considered small with
fewer than 100 employees. A general contractor is considered small with
annual receipts of less than $17 million.
The number, size, and location of entities that actually import
pine and fir lumber from Mexico could not be quantified by APHIS.
According to SBA data, there are about 177,014 entities in these
potentially affected industries. More than 87 percent of these firms,
between approximately 154,029 and 155,447, are classified as small
according to SBA criteria. Thus, the majority of firms likely to be
affected by this proposed rule would be small entities. It is presumed
that the majority of these entities would be ones located in the
southwestern United States.
Given the small fraction of the U.S. supply of unmanufactured wood
articles imported from Mexico, and the even smaller percentage
originating in Mexico's border States, we expect that the effect of
this proposed rule on small entities in the United States would be
negligible. If the proposal is adopted, and kiln dried imports from
nonborder States are instead fumigated, cost savings may be partly
realized by U.S. buyers through lower prices. For imports from Mexico's
border States, costs to U.S. buyers may increase due to the new
treatment requirements. But as discussed above, treatment costs are a
small fraction of total product costs, so any impact, negative or
beneficial, would be slight.
Under these circumstances, the Administrator of the Animal and
Plant Health Inspection Service has determined that this action would
not have a significant economic impact on a substantial number of small
entities.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. If this proposed rule is adopted: (1) All State
and local laws and regulations that are inconsistent with this rule
will be preempted; (2) no retroactive effect will be given to this
rule; and (3) administrative proceedings will not be required before
parties may file suit in court challenging this rule.
National Environmental Policy Act
We have prepared an environmental assessment for this proposed
rule. The assessment provides a preliminary basis for the conclusion
that the importation of unmanufactured wood articles from Mexico under
the conditions specified in this proposed rule would reduce the risk of
introducing or disseminating plant pests and would not have a
significant impact on the quality of the human environment.
We prepared the environmental assessment in accordance with: (1)
The
[[Page 31518]]
National Environmental Policy Act of 1969, as amended (NEPA) (42 U.S.C.
4321 et seq.), (2) regulations of the Council on Environmental Quality
for implementing the procedural provisions of NEPA (40 CFR parts 1500-
1508), (3) USDA regulations implementing NEPA (7 CFR part 1b), and (4)
APHIS' NEPA Implementing Procedures (7 CFR part 372).
Copies of the environmental assessment are available for public
inspection at USDA, room 1141, South Building, 14th Street and
Independence Avenue SW., Washington, DC, between 8 a.m. and 4:30 p.m.,
Monday through Friday, except holidays. Persons wishing to inspect
copies are requested to call ahead on (202) 690-2817 to facilitate
entry into the reading room. In addition, copies may be obtained by
writing to the individual listed under FOR FURTHER INFORMATION CONTACT.
We invite you to comment on all aspects of this proposed rule,
including the environmental assessment. For information on when and
where to send your comments, please refer to the DATES and ADDRESSES
sections near the beginning of this document.
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 proposed rule have been approved by the Office of
Management and Budget (OMB). The forms that we are proposing to require
for the importation into the United States of certain unmanufactured
wood articles from the adjacent States in Mexico have been approved by
OMB for the importation of unmanufactured wood articles from other
areas of Mexico and other countries. The time that would be needed for
the completion of forms under this proposal is included in the
paperwork hours approved by OMB for the affected CFR sections. The
assigned OMB control number is 0579-0119.
List of Subjects in 7 CFR Part 319
Bees, Coffee, Cotton, Fruits, Honey, Imports, Incorporation by
reference, Nursery stock, Plant diseases and pests, Quarantine,
Reporting and recordkeeping requirements, Rice, Vegetables.
Accordingly, we propose to amend 7 CFR part 319 as follows:
PART 319--FOREIGN QUARANTINE NOTICES
1. The authority citation for part 319 would continue to read as
follows:
Authority: 7 U.S.C. 150dd, 150ee, 150ff, 151-167, 450, 2803, and
2809; 21 U.S.C. 136 and 136a; 7 CFR 2.22, 2.80, and 371.2(c).
2. In Sec. 319.40-3, paragraph (a) would be amended as follows:
Sec. 319.40-3 General permits; articles that may be imported without a
specific permit; articles that may be imported without either a
specific permit or an importer document.
(a) Canada and Mexico. (1) The following articles may be imported
into the United States under general permit:
(i) From Canada: Regulated articles, other than regulated articles
of the subfamilies Aurantioideae, Rutoideae, and Toddalioideae of the
botanical family Rutaceae; and
(ii) From States in Mexico adjacent to the United States:
Commercial and noncommercial shipments of mesquite wood for cooking and
firewood, and small, noncommercial packages of unmanufactured wood for
personal cooking or personal medicinal purposes.
(2) Commercial shipments allowed in paragraph (a)(1) of this
section are subject to the inspection and other requirements in
Sec. 319.40-9 and must be accompanied by an importer document stating
that they are derived from trees harvested in Canada or States in
Mexico adjacent to the United States border.
* * * * *
3. In Sec. 319.40-5, paragraph (f) would be amended by adding the
words ``at a U.S. facility under compliance agreement with APHIS''
immediately before the period, and a new paragraph (l) will be added to
read as follows:
Sec. 319.40-5 Importation and entry requirements for specified
articles.
* * * * *
(l) Railroad ties and pine and fir lumber from Mexico. Cross-ties
(railroad ties) 8 inches or less at maximum thickness and lumber
derived from pine and fir may be imported from Mexico into the United
States if they:
(1) Originate from Mexico;
(2) Are 100 percent free of bark; and
(3) Are fumigated prior to arrival in the United States. The
regulated article and the ambient air must be a temperature of 5 deg.C
or above throughout fumigation. The fumigation must be conducted using
schedule T-312 contained in the Treatment Manual. In lieu of the
schedule T-312 methyl bromide concentration, fumigation may be
conducted with an initial methyl bromide concentration of at least 240
g/m3 with exposure and concentration levels adequate to
provide a concentration-time product of at least 17,280 gram-hours
calculated on the initial methyl bromide concentration.
Done in Washington, DC, this 7th day of June 1999.
Craig A. Reed,
Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 99-14844 Filed 6-10-99; 8:45 am]
BILLING CODE 3410-34-P
