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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. Proposed Rules Federal Register 65411 Vol. 76, No. 204 Friday, October 21, 2011 DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 999 [Doc. No. AMS–FV–09–0064; FV09–999–1 PR] Specialty Crops; Import Regulations; Proposed Pistachio Import Requirements AGENCY: Agricultural Marketing Service, USDA. ACTION: Proposed rule. SUMMARY: This proposed rule invites comments on the establishment of a minimum quality regulation for lots of pistachios imported into the United States. The regulation would specify maximum aflatoxin tolerance levels as well as mandatory aflatoxin testing and certification requirements. The proposed import quality requirements would be the same as or comparable to those in effect for the domestically produced commodity. Under this proposal, aflatoxin levels in imported pistachios could not exceed 15 parts per  billion (ppb), as certified by aflatoxin inspection certificates issued by an accredited laboratory. This action is intended to assure consumers that all pistachios offered for sale in the United States meet the same aflatoxin standards, thus promoting high quality product in the market place and fostering consumer satisfaction. This rule also announces the Agricultural Marketing Service’s (AMS) intention to request approval by the Office of Management and Budget (OMB) of a new information collection requirement, including two new forms that would be completed by either laboratories or pistachio importers. DATES: Comments must be received by December 20, 2011. Pursuant to the Paperwork Reduction Act, comments on the forms and information collection  burden must be received by December 20, 2011. ADDRESSES: Interested persons are invited to submit written comments concerning this proposal. Comments should be sent to the Docket Clerk, Marketing Order and Agreement Division, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 20250–0237; Fax: (202) 720–8938; or Internet: http://www.regulations.gov.  All comments should reference the document number and the date and page number of this issue of the Federal Register and will be available for public inspection in the office of the Docket Clerk during regular business hours, or can be viewed at http://  www.regulations.gov. All comments submitted in response to this rule will  be included in the record and will be made available to the public. Please be advised that the identity of the individuals or entities submitting the comments will be made public on the Internet at the address provided above. FOR FURTHER INFORMATION CONTACT : Laurel May or Kathleen Finn, Marketing Order and Agreement Division, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 20250–0237; Telephone: (202) 720–2491, Fax: (202) 720–8938, or E-mail: [email protected] or [email protected].  Small businesses may request information on complying with this regulation by contacting Laurel May at the above mentioned address. SUPPLEMENT ARY INFORMATION: This proposed rule is issued under section 8e of the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601–674), hereinafter referred to as the ‘‘Act,’’ which provides that whenever the grade, size, quality, or maturity of certain specified commodities, including pistachios, are regulated under a Federal marketing order, imports of these commodities into the United States are prohibited unless they meet the same or comparable grade, size, quality, and maturity requirements as those in effect for the domestically produced commodities. To ensure that these requirements are met, the Act also authorizes the Department of Agriculture (USDA) to perform inspections and related functions such as commodity sampling, and to issue inspection certificates for such imported commodities. USDA is issuing this rule in conformance with Executive Order 12866. There are no administrative procedures that must be exhausted prior to any judicial challenge to the provisions of import regulations issued under section 8e of the Act. This proposed rule would add a new § 999.600 under 7 CFR part 999— Specialty Crops; Import Regulations, and would establish quality requirements for maximum aflatoxin tolerance levels and mandatory testing and certification requirements for pistachios offered for importation into the United States. The proposed quality requirements for imported pistachios are the same as or comparable t o those established for pistachios grown in California, Arizona, and New Mexico under Marketing Agreement and Order No. 983 (7 CFR part 983) (order), both as amended. This proposed rule would also revise § 999.500, which currently specifies safeguard procedures for the importation of walnuts and dates that are exempt from § 8e regulations. This section would be revised to include safeguard procedures for the importation of pistachios intended for exempted purposes. The order prohibits the shipping of pistachios for domestic human consumption that do not meet the quality requirements for aflatoxin levels in the nuts. Such quality requirements specify that aflatoxin levels may not exceed the maximum tolerance of 15 ppb. Pistachios that fail to meet these requirements must be reworked and retested, or disposed of as specified in the order. These regulations were designed to ensure that only high quality pistachios containing low levels of aflatoxin are shipped, thus promoting high quality product in the market place and fostering consumer satisfaction. The order, which was established for California pistachios in 2004, was recently amended to include the states of Arizona and New Mexico. Pistachios grown in California, Arizona, and New Mexico represent over 99 percent of the U.S. domestic production, and 98 percent of the domestic consumption. Thus, almost all domestically produced pistachios are regulated under Marketing Order No. 983. There is no Ve rDat e Mar <15> 2010 17 :43 Oct 20 , 2 011 Jk t 2 26 001 PO 0000 0 Fr m 0 00 01 Fmt 470 2 Sf mt 47 02 E: \FR\ FM\21OCP1. SGM 21 OCP1    j    l   e   n    t    i   n    i   o   n    D    S    K    4    T    P    T    V    N    1    P    R    O    D   w    i    t    h    P    R    O    P    O    S    A    L    S

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This section of the FEDERAL REGISTERcontains notices to the public of the proposedissuance of rules and regulations. The

purpose of these notices is to give interestedpersons an opportunity to participate in therule making prior to the adoption of the finalrules.

Proposed Rules Federal Register

65411

Vol. 76, No. 204

Friday, October 21, 2011

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 999

[Doc. No. AMS–FV–09–0064; FV09–999–1PR]

Specialty Crops; Import Regulations;

Proposed Pistachio ImportRequirements

AGENCY: Agricultural Marketing Service,USDA.

ACTION: Proposed rule.

SUMMARY: This proposed rule invitescomments on the establishment of aminimum quality regulation for lots of pistachios imported into the UnitedStates. The regulation would specifymaximum aflatoxin tolerance levels aswell as mandatory aflatoxin testing andcertification requirements. The

proposed import quality requirementswould be the same as or comparable tothose in effect for the domesticallyproduced commodity. Under thisproposal, aflatoxin levels in importedpistachios could not exceed 15 parts per

 billion (ppb), as certified by aflatoxininspection certificates issued by anaccredited laboratory. This action isintended to assure consumers that allpistachios offered for sale in the UnitedStates meet the same aflatoxinstandards, thus promoting high qualityproduct in the market place andfostering consumer satisfaction. Thisrule also announces the Agricultural

Marketing Service’s (AMS) intention torequest approval by the Office of Management and Budget (OMB) of anew information collection requirement,including two new forms that would becompleted by either laboratories orpistachio importers.

DATES: Comments must be received byDecember 20, 2011. Pursuant to thePaperwork Reduction Act, comments onthe forms and information collection

 burden must be received by December20, 2011.

ADDRESSES: Interested persons areinvited to submit written commentsconcerning this proposal. Commentsshould be sent to the Docket Clerk,Marketing Order and AgreementDivision, Fruit and Vegetable Programs,AMS, USDA, 1400 IndependenceAvenue, SW., STOP 0237, Washington,DC 20250–0237; Fax: (202) 720–8938; orInternet: http://www.regulations.gov. Allcomments should reference thedocument number and the date andpage number of this issue of the FederalRegister and will be available for publicinspection in the office of the DocketClerk during regular business hours, orcan be viewed at http://  www.regulations.gov. All comments

submitted in response to this rule will be included in the record and will bemade available to the public. Please beadvised that the identity of theindividuals or entities submitting thecomments will be made public on theInternet at the address provided above.

FOR FURTHER INFORMATION CONTACT:Laurel May or Kathleen Finn, MarketingOrder and Agreement Division, Fruitand Vegetable Programs, AMS, USDA,1400 Independence Avenue, SW., STOP0237, Washington, DC 20250–0237;Telephone: (202) 720–2491, Fax: (202)720–8938, or E-mail:

[email protected]  [email protected]

Small businesses may requestinformation on complying with thisregulation by contacting Laurel May atthe above mentioned address.

SUPPLEMENTARY INFORMATION: Thisproposed rule is issued under section 8eof the Agricultural MarketingAgreement Act of 1937, as amended (7U.S.C. 601–674), hereinafter referred toas the ‘‘Act,’’ which provides thatwhenever the grade, size, quality, ormaturity of certain specified

commodities, including pistachios, areregulated under a Federal marketingorder, imports of these commoditiesinto the United States are prohibitedunless they meet the same orcomparable grade, size, quality, andmaturity requirements as those in effectfor the domestically producedcommodities. To ensure that theserequirements are met, the Act alsoauthorizes the Department of Agriculture (USDA) to performinspections and related functions suchas commodity sampling, and to issue

inspection certificates for such importedcommodities.

USDA is issuing this rule inconformance with Executive Order12866.

There are no administrativeprocedures that must be exhausted priorto any judicial challenge to theprovisions of import regulations issuedunder section 8e of the Act.

This proposed rule would add a new§ 999.600 under 7 CFR part 999—Specialty Crops; Import Regulations,and would establish qualityrequirements for maximum aflatoxintolerance levels and mandatory testingand certification requirements forpistachios offered for importation into

the United States. The proposed qualityrequirements for imported pistachiosare the same as or comparable to thoseestablished for pistachios grown inCalifornia, Arizona, and New Mexicounder Marketing Agreement and OrderNo. 983 (7 CFR part 983) (order), bothas amended.

This proposed rule would also revise§ 999.500, which currently specifiessafeguard procedures for theimportation of walnuts and dates thatare exempt from §8e regulations. Thissection would be revised to includesafeguard procedures for the

importation of pistachios intended forexempted purposes.The order prohibits the shipping of 

pistachios for domestic humanconsumption that do not meet thequality requirements for aflatoxin levelsin the nuts. Such quality requirementsspecify that aflatoxin levels may notexceed the maximum tolerance of 15ppb. Pistachios that fail to meet theserequirements must be reworked andretested, or disposed of as specified inthe order. These regulations weredesigned to ensure that only highquality pistachios containing low levels

of aflatoxin are shipped, thus promotinghigh quality product in the market placeand fostering consumer satisfaction.

The order, which was established forCalifornia pistachios in 2004, wasrecently amended to include the statesof Arizona and New Mexico. Pistachiosgrown in California, Arizona, and NewMexico represent over 99 percent of theU.S. domestic production, and 98percent of the domestic consumption.Thus, almost all domestically producedpistachios are regulated underMarketing Order No. 983. There is no

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65412 Federal Register / Vol. 76, No. 204/ Friday, October 21, 2011/ Proposed Rules

1Gibbons, Jeff; 2002. Testimony in PistachiosGrown in California; Hearing on Proposed Marketing Agreement and Order No. 983. Pages326–359.

2Sumner, Daniel A; 2002. Testimony inPistachios Grown in California; Hearing onProposed Marketing Agreement and Order No. 983.2002. Pages 698–735 and 747–820.

3Reinecke, Karen; 2002. Testimony in PistachiosGrown in California; Hearing on Proposed Marketing Agreement and Order No. 983. Pages152–183.

4Gibbons, Jeff; 2002. Testimony in PistachiosGrown in California; Hearing on Proposed Marketing Agreement and Order No. 983. 2002.Pages 326–359.

5Eaton, David L.; Jennifer E. Hobden; and Bruce J. Kelman. 2002. Aflatoxin in Pistachios:Establishing a Regulatory Action Level in Support of a Proposed Federal Marketing Order. 11 pages.

67 CFR part 996—Minimum Quality andHandling Standards for Domestic and ImportedPeanuts Marketed in the United States.

other Federal marketing order in effectfor pistachios produced in the UnitedStates.

According to USDA’s ForeignAgricultural Service (FAS), Iran istypically the world’s largest pistachioproducer, followed by the U.S. andTurkey, although Syria’s production hasincreased in recent years. During the

three most recent crop years (Septemberthrough August) for which completedata is available, 2007–08 through2009–10, the production averages inmillions of pounds (inshell basis) forIran, the U.S., Turkey, and Syria wereapproximately 386, 350, 120, and 141,respectively.

Historically, the bulk of U.S. pistachioimports have come from Turkey andIran, although Iranian imports have

 been prohibited since July 2010. Theremainder comes from other countries,including Italy, China, Switzerland,France, Australia, Hong Kong, and

Israel. Imported pistachios may beinshell or shelled. According to FAS,the U.S. imported an average of approximately 1.7 million pounds of pistachios (inshell basis) annuallyduring the three crop years from 2007–08 through 2009–10. Average U.S.consumption of pistachios during thatsame period was approximately 100million pounds (inshell basis) annually.Imports, therefore, representapproximately two percent of U.S.pistachio consumption.

Proposed Requirements

Definitions

The proposed regulations wouldinclude definitions of terms used in theimport regulation. Such terms are thesame as or comparable to those definedin the marketing order for domesticpistachios as established at 69 FR 17844(April 5, 2004) and amended at 74 FR56532 (November 2, 2009).

Under the proposed regulations,‘‘pistachio’’ would mean the nut of thepistachio tree, Pistachia vera, whetherinshell or shelled. ‘‘Importer’’ would bedefined as a person who importspistachios into the United States.

‘‘Aflatoxin’’ would be defined as amycotoxin that can be found in nuts,dried fruits, and grains. ‘‘Aflatoxininspection certificate’’ would mean acertificate issued by a USDA or USDA-accredited laboratory. ‘‘USDAlaboratory’’ and ‘‘USDA-accreditedlaboratory’’ would be defined aslaboratories authorized to test importedpistachios for aflatoxin content.‘‘Inspector’’ would mean any inspectorauthorized by USDA to draw andprepare pistachio samples for testing.‘‘Lot’’ would mean any quantity of 

pistachios submitted for testing. Otherterms useful in the administration of theimport regulation would also bedefined.

Maximum Aflatoxin Tolerance

The presence or absence of aflatoxinis considered a quality characteristic inpistachios 1 because concerns aboutaflatoxin contamination can impactconsumers’ perception of the quality of pistachios, and therefore negativelyimpact demand. According to researchprovided by the industry, poor qualitypistachios impact demand and thepotential growth of demand forpistachios.2 Moreover, any marketdisturbances related to aflatoxin inpistachios, regardless of the origin of those pistachios, could have adetrimental effect on the pistachioindustry.3 

The proposed regulations wouldestablish a maximum aflatoxin tolerancelevel of 15 ppb for lots of pistachiosimported into the U.S. for humanconsumption. As required under section8e of the Act, this is the same levelcurrently prescribed for domesticpistachios regulated under the order.Establishing a 15 ppb limit for aflatoxinin all pistachios marketed for humanconsumption in the United States isexpected to bolster overall consumerconfidence in pistachio quality andstrengthen the demand for pistachios.Comparatively, the international CodexAlimentarius Commission’s (Codex)maximum aflatoxin tolerance for

pistachios is 10 ppb. The domesticpistachio industry believes that 15 ppbis appropriate to ensure the quality of pistachios sold in U.S. markets,4 Research also supports the 15 ppbtolerance.5 Additionally, a 15 ppbtolerance for aflatoxin in domestic andimported pistachios is consistent withexisting regulations for all domestic andimported peanuts marketed in theUnited States, for which USDA has

established a 15 ppb aflatoxintolerance.6 

Aflatoxin Sampling and Testing Procedures

The proposed regulations provide foraflatoxin sampling procedures based onlot size. Such sampling procedures arethe same as or comparable to those

established for domestic shipments, andmirror the sampling proceduresprescribed for pistachio shipments tothe European Union. At the discretionof the importer, pistachio lots arriving ata U.S. port of entry would bewarehoused near the port or shippedinland to a pistachio handling facility toawait aflatoxin sampling and testing.Importers would be responsible for anytransportation or storage fees incurred.Depending on the size of the lot, aspecified number of incrementalsamples would be pulled and combinedto form a lot sample. The lot sample

would then be divided into smaller testsamples, depending upon the size of thelot to be tested. The required weight of lot samples and test samples differs

 between inshell pistachios and shelledkernels because of the additional weightof the shells for inshell pistachios. Thedrawing and dividing of all samplesmust be conducted by or under thesupervision of a Federal or Federal-Stateinspector.

Following the drawing and dividingof samples, each sample would beproperly identified and submitted to aUSDA or USDA-accredited laboratoryfor analysis. Test samples would beprepared and analyzed using HighPressure Liquid Chromatography(HPLC) or the Vicam Method (Aflatest).The aflatoxin level would be calculatedon a kernel weight basis.

For lots of up to 4,400 lbs, one testsample would be analyzed. If thesample has an aflatoxin level at or

 below 15 ppb, the lot could be certifiedas negative for aflatoxin on the aflatoxininspection certificate, which would becompleted by the laboratory. If theaflatoxin level is greater than 15 ppb,the lot fails, and the laboratory wouldfill out a failed lot notification report for

submission to the importer, the U.S.Customs and Border Protection(Customs), and USDA.

For lots of more than 4,400 lbs, twotest samples would be prepared. If thefirst sample has an aflatoxin level at or

 below 10 ppb, the lot could be certifiedas negative for aflatoxin on the aflatoxininspection certificate. Analysis of theother test sample would be unnecessary.

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65413Federal Register / Vol. 76, No. 204/ Friday, October 21, 2011/ Proposed Rules

If the aflatoxin level of the first testsample is above 20 ppb, the lot fails,and the laboratory would fill out a failedlot notification report for submission tothe importer, Customs, and USDA. If theaflatoxin level of the first test sample ishigher than 10 ppb and at or below 20ppb, the importer could elect to test thesecond sample or rework the lot and

resubmit it for testing. If the importerchooses to proceed with testing thesecond sample, the results from testing

 both samples would be averaged. If theaverage results are at or below 15 ppb,the lot may be certified negative foraflatoxin. If the average results arehigher than 15 ppb, the lot fails and theaccredited lab would submit a failed lotnotification report to the importer,Customs, and USDA. If the importerchooses to rework the lot after the firstsample is analyzed, the lot would again

 be subject to sampling and testing as if it were a new lot.

If an aflatoxin inspection certificate isissued certifying that a lot is negative foraflatoxin at any stage of the sequentialtesting (meaning that the lot’s aflatoxincontent is below the maximumthreshold), the certification would statethat the lot meets the §8e importaflatoxin requirements. The certificationwould expire after 12 months.

Upon notification of any failed lot, theimporter would work with Customs todetermine the appropriate disposition of the pistachios. Pistachios that fail tomeet the aflatoxin requirements would

 be required to be sold for non-humanconsumption, exported to another

destination with a higher aflatoxintolerance, or disposed of under thesupervision of Customs, and the Federalor Federal-State Inspection Programscould be called upon to verify disposals.Any costs associated with certifying adisposal would be paid by the importer.

Rework Procedures

Although reworking and retesting of afailed lot would not be required,importers could opt to take those steps,which would provide them with anopportunity to secure a return for theirimported product while maintaining the

integrity of the aflatoxin requirements.The alternative would be to dispose of the lot through proper channels asdescribed above. The rework proceduresdescribed below are the same as orcomparable to those required fordomestic pistachios under the order.

Inshell pistachios. Rework proceduresfor inshell pistachios failing to meetaflatoxin requirements would requireimporters to remove 100 percent of thefailing lot from its bulk or retailpackaging. These pistachios would berequired to pass through the sorting

stages of the handling process in orderto remove those nuts having thecharacteristics most susceptible toharboring aflatoxin. After reworking thelot, the importer would report theweight of the total accepted and rejectedproduct to Customs and USDA on arework and failed lot disposition report,and the acceptable portion of the

reworked lot would be resampled andtested for aflatoxin. In the case of areworked lot, the lot sample size and thetest sample size would be doubled fromthat specified in the initial testing. If,after having been reworked, the lot failsaflatoxin testing for a second time, thelot could be shelled and the kernelsreworked, sampled, and tested in themanner required for an original lot of pistachio kernels. If the importerdecides not to pursue further reworkingof the failed lot, those pistachios would

 be prohibited from entering the streamof commerce for domestic human

consumption. The lot must be exported,sold for domestic non-humanconsumption purposes, or disposed of as described above. The importer wouldreport the lot’s final disposition toCustoms and USDA on a rework andfailed lot disposition report.

Shelled pistachios. Reworkprocedures proposed for pistachiokernels failing to test negative foraflatoxin would also require areprocessing of 100 percent of thevolume of the failing lot. As with inshellpistachios, after reworking, the totalweight of the accepted product and thetotal weight of the rejected product

would be reported by the importer toCustoms and USDA on the rework andfailed lot disposition report. Thereworked lot of kernels would beresampled and retested for aflatoxincontent as previously described.

Comingling 

Importers could comingle certifiedlots with other certified lots of pistachios. However, to maintain theintegrity of certified lots, the cominglingof certified and uncertified lots of pistachios would cause the loss of certification for the comingled lots.

ExemptionsSection 983.70 of the marketing order

provides that domestic handlers mayhandle pistachios free of the regulatoryand assessment provisions of the orderif such pistachios are handled inquantities not exceeding 5,000 driedpounds during any production year. Thepurpose of this provision is to providean exemption from the requirements of the order for small quantities of pistachios such as those that are grownfor home or personal use. Further, this

exemption is applied on a productionyear basis. Accordingly, under theproposed import regulation, acomparable 5,000-pound exemptionwould apply to all shipments of pistachios imported for humanconsumption. Also, substandardpistachios imported for use in non-human consumption outlets would not

 be subject to the proposed aflatoxinregulations.

Compliance

Any importer who violates anyprovision of the proposed importregulations would be subject to aforfeiture in the amount prescribed insection 608a(5) of the Act (7 U.S.C. 601–674), or, upon conviction, penalties inthe amounts prescribed in section608c(14) of the Act, or to both forfeitureand penalty. False representation to anyagency of the United States on anymatter within its jurisdiction, knowing

it to be false, is a violation of 18 U.S.C.1001, which provides for a fine orimprisonment or both.

Safeguards

Safeguard procedures in the form of importer and receiver reportingrequirements would be used to ensurethat substandard pistachios imported forpurposes other than humanconsumption would be used only inauthorized outlets exempt from theproposed aflatoxin regulations. Thesafeguard procedures would becomparable to those currently specified

for the importation of other exemptedcommodities. Under the proposedregulations, importers and receivers of pistachios for other than humanconsumption purposes would berequired to complete and submit toUSDA an Importer’s ExemptCommodity Form (Form FV–6), thegeneric form used by importers andreceivers of other exemptedcommodities. The information providedon Form FV–6 would be used by USDAto track pistachios marketed forexempted uses.

The provisions of this proposed rulewould establish maximum aflatoxintolerance levels and mandatory testingand certification requirements for lots of pistachios offered for importation intothe United States. The proposed importquality requirements would beimplemented in accordance withsection 8e of the Act. These provisionsare intended to ensure that pistachiosimported into the United States for thepurposes of domestic humanconsumption are of a qualitycomparable to those pistachiosregulated under Marketing Order No.

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983 and contain no more than 15 ppbof aflatoxin.

Initial Regulatory Flexibility Analysis

Pursuant to the requirements set forthin the Regulatory Flexibility Act (RFA)(5 U.S.C. 601–612), the AgriculturalMarketing Service (AMS) hasconsidered the economic impact of this

proposed rule on small entities.Accordingly, AMS has prepared thisinitial regulatory flexibility analysis.

The purpose of the RFA is to fitregulatory actions to the scale of 

 business subject to such actions in orderthat small businesses will not be undulyor disproportionately burdened.Marketing orders issued pursuant to theAct, and rules issued thereunder, areunique in that they are brought aboutthrough group action of essentiallysmall entities acting on their own

 behalf. Import regulations issued underthe Act are based on those establishedunder Federal marketing orders.

Small agricultural service firms,which include importers and receivers,have been defined by the SmallBusiness Administration (SBA) (13 CFR121.201) as those having annual receiptsof less than $7,000,000.

AMS estimates that the there areapproximately 50 importers andreceivers who handled shipments of pistachios into the United States

 between 2007 and 2009. About 10 of the50 firms are also substantially engagedin the marketing of U.S. grownpistachios, and are large firms accordingto the SBA definition. Most of the

remaining 40 firms import a number of different food products, and most arealso likely to be large firms under theSBA definition, even though theygenerally import only small quantitiesof pistachios. There are also nine USDA-accredited laboratories in California thatperform aflatoxin testing for pistachios.AMS estimates that four of the ninelaboratories would be considered smallfirms according to the SBA definition.

Turkey and Iran have historically been the source of most pistachiosimported into the U.S. Turkishpistachios are imported predominantly

in the shell, while Iranian pistachios aretypically imported shelled. Importedpistachios also come from Italy, China,Switzerland, France, Australia, HongKong, and Italy. Most pistachiosimported from other nations are alsoshelled. The proposed importregulations would establish protocolsfor aflatoxin analysis for both inshelland shelled pistachios.

Section 8e of the Act provides thatwhen certain domestically producedcommodities, including pistachios, areregulated under a Federal marketing

order, imports of that commodity mustmeet the same or comparable grade,quality, size, and maturity requirements.

This rule would establish a minimumquality requirement for lots of importedpistachios by specifying a maximumaflatoxin tolerance level as well asaflatoxin testing and certificationrequirements. Importers would be

responsible for arranging for therequired transportation, storage,sampling, testing, and certification of such pistachios prior to importation.Sampling would be conducted by theFederal or Federal-State inspectionservices, and aflatoxin testing andcertification would be performed byUSDA or USDA-accredited laboratories.

The proposed import aflatoxin testingand certification requirements are thesame as or comparable to thoseimplemented under the order regulatingthe handling of pistachios grown inCalifornia, Arizona, and New Mexico.Pistachios failing to meet the aflatoxinrequirements on initial analysis could

 be reworked and retested, exported toanother destination with a higheraflatoxin tolerance, or disposed of inauthorized outlets under thesupervision of Customs, with assistancefrom the inspection service if necessary,to verify proper disposal of substandardnuts. Procedures for these activities alsoare proposed. Lots of importedpistachios that fail aflatoxin testingcould be diverted to certain non-humanconsumption outlets and would besubject to the safeguard provisions of § 999.500. Some reporting and

recordkeeping requirements also areproposed in the pistachio importregulation. These requirements also arethe same as or comparable to thoseimplemented under the order.

The cost of testing pistachios foraflatoxin would vary, depending onsuch factors as the location of the portof entry and the size of the lot to betested. For purposes of estimating anaverage per-pound testing expense forimported pistachios, this analysisassumes an average lot equal to onecontainer load weighing 16,000 poundsof inshell pistachios arriving at the Port

of San Francisco and being tested foraflatoxin by an accredited laboratory inFresno, California.

In the following example computationof testing costs, there are four elements:(1) A fee (at an hourly rate) charged bythe inspection fee to draw the sample,(2) overnight shipping, (3) a fee charged

 by the laboratory to determine the levelof aflatoxin, and (4) the ‘‘unit value’’ of the quantity of pistachios drawn for thesample. The unit value used in thisexample computation is the average forthe last 3 complete marketing years for

which import data are available, 2007/08–2009/10. The unit value for the 3-year period ($1.68 per pound) iscomputed by dividing the average 3-year import value ($2,900,000) by theaverage import quantity (1,725,000pounds). Data are from FAS.

The inspection service fee of $74 perhour is multiplied by the estimated time

of 2 hours to draw a sample, for a costof $148. The overnight shipping costand laboratory fee are estimated at $200and $100, respectively.

The next step in the examplecomputation is value of pistachiosdrawn for the sample. Under the newproposed section 996.600, in section (d)Sampling, the weight of a lot sample is16 kilograms (equivalent to 35.3pounds) for a lot weighing between11,001 and 22,000 pounds. Multiplying35.3 pounds times the unit value of imported pistachios ($1.68) yields avalue of the tested sample of approximately $59. Assuming thataflatoxin certification of the 16,000-pound lot requires the testing of onlyone sample, the sum of the four costelements would be $507, orapproximately 3.2 cents per pound(approximately two percent of the unitvalue of imported pistachios).

It is likely that a pistachio lot arrivingat the Port of San Francisco would betransported to an inland handlingfacility to await sampling and testingand would incur no additional storagecosts. However, if the lot is stored at aCustoms warehouse near the port,storage fees ranging between $100 and

$500 per day could be incurred whilethe samples are analyzed. Analysis andcertification is estimated to require

 between two to five days. Assuming athree day turnaround for a lot incurring$200 per day storage fees,approximately $600, or 3.75 cents perpound of pistachios could be added tothe testing expense described above.

Regarding the impact of this proposedrule on affected entities, this proposalwould establish an import regulation forpistachios as provided in section 8e of the Act. The proposed import regulationwould require importers to arrange forthe testing and certification of allimports of pistachios for humanconsumption prior to importation.There would be some increased costs toimporters associated with the testingand certification of imported product.However, it is expected that consumersatisfaction, and therefore demand,would be increased by regulatingimports and domestic productuniformly. The additional costs areexpected to be offset by the benefits of supplying the U.S. marketplace withonly high quality pistachios. As

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mentioned above, the proposed importregulations are the same as orcomparable to those established for U.S.domestic pistachio shipments. Thedomestic industry recently adoptedaflatoxin sampling and testingprocedures that align with the CodexAlimentarius Commission’s (Codex)sampling plan (75 FR 43045; July 23,

2010). The Codex sampling plan is used by the European Commission as itsregulation for the importation of treenuts into the European Union. Thus, theproposed import regulations arecomparable to those widely recognized

 by international pistachio markets.Industry information suggests that

when aflatoxin levels in imported lots of pistachios exceed the FDA maximumtolerance of 20 ppb, the levels aregenerally significantly higher than 20ppb. Very few lots test between 15 ppband 20 ppb. It is anticipated that mostimported lots will test below the

proposed 15 ppb tolerance. Thus,establishing a maximum aflatoxintolerance of 15 ppb for importedpistachios is not expected to have asignificant impact on trade.

The alternative to this action is tocontinue to allow pistachios to beimported without having to meetaflatoxin requirements the same as orcomparable to those established fordomestic pistachios. However, theimport regulations are necessary toensure that imported and domesticpistachios for human consumption inthe United States are of uniformly high

quality. Further, the Act requires thatimport regulations be issued whenevermarketing order regulations areestablished for pistachios. Therefore,this alternative is not appropriate.

The additional reporting andrecordkeeping requirements that would

 be imposed under this proposed rule arediscussed in more detail below. Reportsand forms required under the pistachioimport regulation will be periodicallyreviewed to reduce informationrequirements and duplication byindustry and public sector agencies.

Additionally, except for theapplicable domestic regulations, USDAhas not identified any relevant Federalrules that duplicate, overlap, or conflictwith this proposed rule.

A small business guide on complyingwith fruit, vegetable, and specialty cropmarketing agreements and orders may

 be viewed at: http://www.ams.usda.gov/  MarketingOrdersSmallBusinessGuide. Any questions about the complianceguide should be sent to Laurel May atthe previously mentioned address in theFOR FURTHER INFORMATION CONTACT section.

In accordance with section 8e of theAct, the United States TradeRepresentative has concurred with theissuance of this proposed rule.

Interested persons are invited tocomment on this initial regulatoryflexibility analysis and submitinformation on the regulatory andinformational impacts this proposed

action would likely have on small businesses. A 60-day period forcomments is provided. All writtencomments received within the commentperiod will be considered before a finaldetermination is made on this matter.

AMS is committed to complying withthe E-Government Act, to promote theuse of the Internet and otherinformation technologies to provideincreased opportunities for citizenaccess to Government information andservices, and for other purposes.

Paperwork Reduction Act

In accordance with the PaperworkReduction Act of 1995 (44 U.S.C.chapter 35), this notice announces thatAMS is requesting OMB approval of anew information collection under OMBNo. 0581–NEW. Upon approval of thisnew information collection by OMB, arequest will be made to merge thiscollection with the forms currentlyapproved for use under OMB No. 0581–0215, Pistachios Grown in California,Arizona, and New Mexico.

Title: Pistachios Imported Into theUnited States.

OMB Number: 0581–New.Type of Request: New information

collection.Abstract: The information collection

requirements contained in this requestare necessary in the administration of proposed regulations for pistachiosimported into the United States. Suchregulations are authorized underSection 8e of the Agricultural MarketingAgreement Act of 1937 (Act), asamended (7 U.S.C. 601–674), whichrequires that whenever the Secretary of Agriculture issues grade, size, quality,or maturity regulations under domesticmarketing orders for certaincommodities, the same or comparable

regulations on imports of thosecommodities must be issued.The proposed rule would establish

mandatory aflatoxin testing andcertification requirements for pistachiosoffered for importation into the UnitedStates. These requirements would be thesame as or comparable to thoseestablished under Marketing Order No.983 regulating the handling of pistachios grown in California, Arizona,and New Mexico.

Under the proposed regulation,laboratories that perform chemical

analysis of aflatoxin content forimported pistachios would be requiredto report any lots that fail aflatoxintesting. The Imported Pistachios—Failed Lot Notification Report (FV–249)would be completed by the laboratoryand submitted to the importer, Customs,and USDA within 10 days of the failedtest. This report would contain

information about the failed lot,including its identity and the aflatoxinlevel determined during analysis of thelot.

Under the proposed regulations,importers would be required to reportthe disposition of any failed lots,including those that are reworked tomeet the aflatoxin requirements, on theImported Pistachios—Rework and Failed Lot Disposition Report (FV–251).This report would contain informationabout the quantity of nuts that wereaccepted and rejected during rework,and would be used to report the

disposition of any pistachios failingaflatoxin testing. Importers would berequired to complete and submit theform to Customs and USDA within 10days of reworking the lot.

USDA and Customs would use thetwo reports described above to trackpistachio lots being offered forimportation into the United States andfollow up on the disposition of failinglots to ensure that pistachios withaflatoxin levels exceeding the maximumtolerance of 15 ppb are not shipped todomestic human consumption markets.

Safeguard procedures in the form of 

importer and receiver reportingrequirements would be used to ensurethat shipments of pistachios exemptfrom the import regulations aredisposed of only in authorized exemptoutlets. Under the proposed importregulations, importers of exemptimported pistachios would be requiredto complete and submit, prior toimportation, an Importer’s ExemptCommodity Form (FV–6). Form FV–6would be used for tracking pistachiosmarketed for exempted uses that do notmeet requirements for humanconsumption. Form FV–6 is anelectronic form available through AMS,is used by importers of othercommodities to report imports of exempted products, and is alreadyapproved by OMB through December31, 2011 (OMB Control Number 0581–0167—Specified Commodities Importedinto the United States Exempt FromImport Regulations). Importers andreceivers register as users of theelectronic form and then are grantedaccess to the reporting system. Receiversuse the same system to certify that thecommodity has been received and that

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it will be utilized for authorized exemptpurposes.

The two new forms require theminimum amount of informationnecessary to effectively carry out therequirements of the Act, and their useis necessary to fulfill the intent of theAct and to administer section 8ecompliance activities. These reports and

the safeguard procedures outlined aboveare the same as or comparable to thereports and procedures currentlyrequired by other domestic marketingorders and import regulations.

The information collected on theseforms is used primarily by authorizedrepresentatives of USDA, includingAMS, Fruit and Vegetable Programs’regional and headquarters staff. AMS isthe primary user of the information.

The proposed request for a newinformation collection under thepistachio import regulations is asfollows:

Imported Pistachios—Failed LotNotification—Form FV–New

Estimate of Burden: Public reporting burden for this collection of informationis estimated to average 12 minutes perresponse.

Respondents: USDA and USDA-accredited Laboratories.

Estimated Number of Respondents: 7.Estimated Number of Responses per 

Respondent: 4.Estimated Total Annual Burden on

Respondents: 5.6 hours.

Imported Pistachios—Rework and

Failed Lot Disposition Report—FormFV–New

Estimate of Burden: Public reporting burden for this collection of informationis estimated to average 12 minutes perresponse.

Respondents: Importers of pistachiosfailing aflatoxin testing.

Estimated Number of Respondents:10.

Estimated Number of Responses per Respondent: 3.

Estimated Total Annual Burden onRespondents: 6.0 hours.

Comments are invited on: (1) Whether

the proposed collection of informationis necessary for the proper performanceof the functions of the agency, includingwhether the information will havepractical utility; (2) the accuracy of theagency’s estimate of the burden of theproposed collection of informationincluding the validity of themethodology and assumptions used; (3)ways to enhance the quality, utility, andclarity of the information to becollected; and (4) ways to minimize the

 burden of the collection of informationon those who are to respond, including

through the use of appropriateautomated, electronic, mechanical, orother technological collectiontechniques or other forms of informationtechnology. Comments should referenceOMB No. 0581–NEW and the pistachioimport regulations, and be sent to USDAin care of the Docket Clerk at thepreviously mentioned address. All

comments received will be available forpublic inspection during regular

 business hours at the same address.

List of Subjects in 7 CFR Part 999

Dates, Filberts, Food grades andstandards, Imports, Nuts, Prunes,Raisins, Reporting and recordkeepingrequirements, Walnuts.

For the reasons set forth above, 7 CFRPart 999 is proposed to be amended asfollows:

PART 999—SPECIALTY CROPS;IMPORT REGULATIONS

1. The authority citation for 7 CFRPart 999 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Amend §999.500 by revising thesection heading and paragraphs (a) and(d) to read as follows:

§ 999.500 Safeguard procedures forwalnuts, certain dates, and pistachiosexempt from grade, size, quality, andmaturity requirements.

(a) Each person who imports orreceives any of the commodities listedin paragraphs (a)(1) through (3) of thissection shall file an ‘‘Importer’s Exempt

Commodity Form’’ (FV–6) with theMarketing Order and AgreementDivision, Fruit and Vegetable Programs,AMS, USDA, and shall provide aprinted copy of the completed FormFV–6 to the U.S. Customs and BorderProtection Regional Director or DistrictDirector, as applicable, at the port atwhich the customs entry is filed. Aprinted copy shall accompany the lot tothe exempt outlet specified on the form.Any lot of any commodity offered forinspection or aflatoxin testing and, all ora portion thereof, subsequentlyimported as exempt under this

provision shall also be reported on an‘‘Importer’s Exempt Commodity Form.’’Such form, accompanied by a copy of the applicable inspection certificate,shall be provided to the MarketingOrder and Agreement Division. Theapplicable commodities are:

(1) Dates which are donated to needypersons, prisoners or Native Americanson reservations;

(2) Walnuts which are: Green walnuts(so immature that they cannot be usedfor drying and sale as dried walnuts);walnuts used in non-competitive outlets

such as use by charitable institutions,relief agencies, governmental agenciesfor school lunch programs, anddiversion to animal feed or oilmanufacture; or

(3) Substandard pistachios which arefor non-human consumption purposes.

* * * * *(d) All FV–6 forms and other

correspondence regarding entry of 8ecommodities must be submitted online,mailed or faxed to the Marketing Orderand Agreement Division, Fruit andVegetable Programs, AMS, USDA, 1400Independence Avenue SW., STOP 0237,Washington, DC 20250–0237;Telephone (202) 720–4607; or Fax (202)720–5698. FV–6 forms submitted byFAX must be followed by a mailed,original copy of the FV–6.

3. Add §999.600 to read as follows:

§ 999.600 Regulation governing theimportation of pistachios.

(a) Definitions. (1) Aflatoxin is one of 

a group of mycotoxins produced by themolds Aspergillus flavus andAspergillus parasiticus. Aflatoxins arenaturally occurring compoundsproduced by molds, which can bespread in improperly processed andstored nuts, dried fruits, and grains.

(2) Aflatoxin inspection certificatemeans a certificate issued by a USDA orUSDA-accredited laboratory.

(3) Certified lots of pistachios arethose for which aflatoxin inspectioncertificates have been issued.

(4) Customs means the U.S. Customsand Border Protection.

(5) Importation of pistachios meansthe release of pistachios from thecustody of U.S. Customs and BorderProtection.

(6) Importer means a person whoengages in the importation of pistachiosinto the United States.

(7) Inshell pistachios meanspistachios that have shells that have not

 been removed.(8) Inspection Service means the

Federal Inspection Service, Fruit andVegetable Programs, AgriculturalMarketing Service, USDA, or theFederal-State Inspection Programs.

(9) Inspector means any inspector

authorized by USDA to draw andprepare pistachio samples.(10) Lot means any quantity of 

pistachios that is submitted for testingpurposes under this part.

(11) Person means an individual,partnership, limited-liabilitycorporation, corporation, trust,association, or any other business unit.

(12) Pistachio means the nut of thepistachio tree, Pistachia vera, whetherinshell or shelled.

(13) Secretary means the Secretary of Agriculture of the United States or any

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officer or employee of the United StatesDepartment of Agriculture who is, orwho may hereafter be, authorized to actin his/her stead.

(14) Shelled pistachios meanspistachio kernels, or portions of kernels,after the pistachio shells have beenremoved.

(15) Substandard pistachios means

pistachios, inshell or shelled, that donot comply with the aflatoxinregulations of this section.

(16) USDA means the United StatesDepartment of Agriculture, includingany officer, employee, service, program,or branch of the Department of Agriculture, or any other person actingas the Secretary’s agent or representativein connection with any provisions of this section.

(17) USDA laboratory meanslaboratories of the Science andTechnology Programs, AgriculturalMarketing Service, USDA, that perform

chemical analyses of pistachios foraflatoxin content.(18) USDA-accredited laboratory 

means a laboratory that has beenapproved or accredited by the U.S.Department of Agriculture to performchemical analyses of pistachios foraflatoxin content.

(b) Importation requirements. Theimportation of any lot of pistachios forhuman consumption is prohibitedunless it meets the requirementscontained in this section, which aredetermined to be the same as orcomparable to those imposed upondomestic pistachios handled pursuantto Order No. 983, as amended (part 983of this chapter).

(c) Maximum aflatoxin tolerance. Noimporter shall ship for domestic humanconsumption lots of pistachios thatexceed an aflatoxin level of 15 ppb.Compliance with the aflatoxinrequirements of this section shall be

determined upon the basis of sampling by a USDA-authorized inspector andtesting by a USDA or USDA-accreditedlaboratory. All shipments must becovered by an aflatoxin inspectioncertificate issued by the laboratory.Testing and certification must becompleted prior to the importation of pistachios.

(d) Sampling. (1) Prior to, or upon,arrival of a pistachio lot at a port of entry, the importer shall provide a copyof the Customs entry documentation forthe pistachio lot or lots to the InspectionService office that will draw andprepare samples of the pistachioshipment. More than one lot may belisted on one entry document. Thedocumentation shall include: TheCustoms entry number; the containernumber(s) or other identification of thelot(s); the weight of the pistachios ineach lot being imported, the locationwhere the lot will be made available for

sampling; and a contact name ortelephone number at the testinglocation. The Inspection Service shallsign, stamp, and return the entrydocument to the importer. The importershall provide a copy of the relevantentry documentation and such otheridentifying information as may berequested for each pistachio lot to theinspector at the time samples are drawnand prepared.

(2) All sampling for aflatoxin testingshall be performed by USDA-authorizedinspectors in accordance with USDArules and regulations governing theinspection and certification of fresh

fruits, vegetables, and other products (7CFR part 51). The cost of each suchsampling and related certification shall

 be borne by the applicant. Wheneverpistachios are offered for sampling andtesting, the applicant shall furnish anylabor and pay any costs incurred forstoring, moving, and opening containers

as may be necessary for proper samplingand testing. The applicant should makeadvance arrangements with theInspection Service to avoid delay inscheduling sampling. Importers maymake arrangements for requiredsampling by contacting the InspectionService office closest to where thepistachios will be made available for

sampling. For questions regardinginspection services, a list of Federal orFederal-State Inspection Programoffices, or for further assistance,importers may contact: Fresh ProductsBranch, Fruit and Vegetable Programs,AMS, USDA, 1400 IndependenceAvenue, SW., Room 1536–S,Washington, DC, 20250; Telephone:(202) 720–5870; Fax: (202) 720–0393.

(3) Lot samples shall be drawn fromeach lot of pistachios designated foraflatoxin testing, and individual testsamples shall be prepared by, or underthe supervision of, an inspector. Eachsample shall be drawn and prepared inaccordance with the sample sizerequirements outlined in Tables 1 and 2

 below. The gross weight of the inshelllot and test samples for aflatoxin testingand the minimum number of incremental samples required are shownin Table 1. The gross weight of thekernel lot and test samples for aflatoxintesting and the minimum number of incremental samples required is shownin Table 2. If more than one test sampleis necessary, the test samples shall bedesignated by the inspector as TestSample #1 and Test Sample #2. Each

sample shall be placed in a suitablecontainer, with the lot number clearlyidentified, and the importer shallsubmit it, along with a copy of thecustoms entry documentation, to aUSDA or USDA-accredited laboratory.The importer shall assume all costs forshipping samples to the laboratory.

TABLE 1—INSHELL PISTACHIO LOT SAMPLING INCREMENTS FOR AFLATOXIN CERTIFICATION 

Lot weight (lbs.)

Minimum numberof incrementalsamples for

the lot sample

Total weightof lot sample(kilograms)

Weight oftest sample(kilograms)

220 or less ....................................................................................................................... 10 2.0 2.0221–440 ........................................................................................................................... 15 3.0 3.0

441–1,100 ........................................................................................................................ 20 4.0 4.0

1,101–2,200 ..................................................................................................................... 30 6.0 6.0

2,201–4,400 ..................................................................................................................... 40 8.0 8.0

4,401–11,000 ................................................................................................................... 60 12.0 6.0

11,001–22,000 ................................................................................................................. 80 16.0 8.0

22,001–150,000 ............................................................................................................... 100 20.0 10.0

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TABLE 2—SHELLED PISTACHIO KERNEL LOT SAMPLING INCREMENTS FOR AFLATOXIN CERTIFICATION 

Lot weight (lbs.)

Minimum numberof incremental

samples for thelot sample

Total weightof lot sample(kilograms)

Weight oftest sample(kilograms)

220 or less ....................................................................................................................... 10 1.0 1.0221–440 ........................................................................................................................... 15 1.5 1.5441–1,100 ........................................................................................................................ 20 2.0 2.0

1,101–2,200 ..................................................................................................................... 30 3.0 3.02,201–4,400 ..................................................................................................................... 40 4.0 4.04,401–11,000 ................................................................................................................... 60 6.0 3.011,001–22,000 ................................................................................................................. 80 8.0 4.022,001–150,000 ............................................................................................................... 100 10.0 5.0

(e) Aflatoxin testing. Importers maymake arrangements for requiredchemical analysis for aflatoxin contentat the nearest USDA or USDA-accredited laboratory. For furtherinformation concerning chemicalanalysis and a list of laboratoriesauthorized to conduct such analysis

contact: Science and TechnologyPrograms, AMS, USDA, 1400Independence Avenue, SW., STOP0270, Washington, DC 20250–0270;Telephone: (202) 720–5231; Fax: (202)720–6496.

(1) Aflatoxin test samples shall bereceived and logged by a USDA orUSDA-accredited laboratory, and eachtest sample shall be prepared andanalyzed using High Pressure LiquidChromatography (HPLC) or the VicamMethod (Aflatest). The aflatoxin levelshall be calculated on a kernel weight

 basis.(2) Lots that require a single test

sample will be certified as ‘‘negative’’on the aflatoxin inspection certificate if the sample has an aflatoxin level at or

 below 15 ppb. If the aflatoxin level isabove 15 ppb, the lot fails and thelaboratory shall fill out an Imported Pistachios—Failed Lot Notificationreport (Form FV–249) as described inparagraph (h)(1) of this section.

(3) Lots that require two test sampleswill be certified as ‘‘negative’’ on theaflatoxin inspection certificate if TestSample #1 has an aflatoxin level at or

 below 10 ppb. If the aflatoxin level of Test Sample #1 is above 20 ppb, the lot

fails and the laboratory shall fill out anImported Pistachios—Failed Lot Notification report (Form FV–249). If the aflatoxin level of Test Sample #1 isabove 10 ppb and at or below 20 ppb,the laboratory may, at the importer’sdiscretion, analyze Test Sample #2 andaverage the test results of Test Samples#1 and #2. Alternately, the importermay elect to withdraw the lot fromtesting, rework the lot, and resubmit itfor testing after reworking. If theimporter directs the laboratory toproceed with the analysis of Test

Sample #2, a lot will be certified asnegative to aflatoxin and the laboratoryshall issue an aflatoxin inspectioncertificate if the averaged result of TestSamples #1 and #2 is at or below 15ppb. If the average aflatoxin level of TestSamples #1 and #2 is above 15 ppb, thelot fails and the laboratory shall fill out

an Imported Pistachios—Failed Lot Notification report (Form FV–249).(4) If an importer does not elect to use

Test Sample #2 for certificationpurposes, the importer may request thatthe laboratory return the sample to theimporter.

(f) Certification. Each lot of pistachiossampled and tested in accordance withparagraphs (d) and (e) of this sectionshall be covered by an aflatoxininspection certificate completed by thelaboratory. The certification expires forthe lot or remainder of the lot after 12months. Each such certificate shall setforth the following:

(1) The date and place of samplingand testing.

(2) The name of the applicant.(3) The Customs entry number

pertaining to the lot or shipmentcovered by the certificate.

(4) The quantity and identifyingmarks of the lot tested.

(5) The aflatoxin level of the lot,stated on a kernel weight basis.

(6) The statement, if applicable:‘‘Meets U.S. import requirements undersection 8e of the AMA Act of 1937.’’

(7) If the lot fails to meet the importrequirements, a statement to that effect

and the reasons therefore.(g) Failed lots/rework procedure. Anylot or portion thereof that fails to meetthe import requirements prior to or afterreconditioning may be exported, soldfor non-human consumption, ordisposed of under the supervision of Customs and, if necessary forverification purposes, the Federal orFederal-State Inspection Programs, withthe costs of certifying the disposal of such lot paid by the importer.

(1) Inshell rework procedure for aflatoxin. If inshell rework is selected as

a remedy to meet the aflatoxinrequirements of this part, then 100percent of the product within that lotshall be removed from the bulk and/orretail packaging containers andreworked to remove the portion of thelot that caused the failure. Reworkingshall consist of mechanical, electronic,

or manual procedures normally used inthe handling of pistachios. After therework procedure has been completed,the total weight of the accepted productand the total weight of the rejectedproduct shall be reported by theimporter to Customs and USDA on anImported Pistachios—Rework and Failed Lot Disposition report (Form FV–251) as described in paragraph (h)(2) of this section. The reworked lot shall besampled and tested for aflatoxin asspecified in paragraphs (d) and (e) of this section, except that the lot samplesize and the test sample size shall bedoubled. If, after the lot has beenreworked and tested, it fails theaflatoxin test for a second time, the lotmay be shelled and the kernelsreworked, sampled, and tested in themanner specified for an original lot of kernels, or the failed lot may beexported, used for non-humanconsumption, or otherwise disposed of.

(2) Kernel rework procedure for aflatoxin. If pistachio kernel rework isselected as a remedy to meet theaflatoxin requirements of this part, then100 percent of the product within thatlot shall be removed from the bulk and/or retail packaging containers andreworked to remove the portion of thelot that caused the failure. Reworkingshall consist of mechanical, electronic,or manual procedures normally used inthe handling of pistachios. After therework procedure has been completedthe total weight of the accepted productand the total weight of the rejectedproduct shall be reported to Customsand USDA on an Imported Pistachios—Rework and Failed Lot Dispositionreport (Form FV–251). The reworked lotshall be sampled and tested for aflatoxin

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as specified in paragraphs (d) and (e) of this section.

(3) Failed lot reporting. If a lot fails tomeet the aflatoxin requirements of thispart, the testing laboratory shallcomplete an Imported Pistachios—Failed Lot Notification report (Form FV–249) as described in paragraph (h)(1) of this section, and shall submit it to

Customs, the importer, and USDAwithin 10 working days of the testfailure. This form must be completedand submitted each time a lot failsaflatoxin testing.

(h) Reports and recordkeeping. (1)Form FV–249 Imported Pistachios—Failed Lot Notification. Each USDA orUSDA-accredited laboratory shall notifythe importer; Customs; and theMarketing Order and AgreementDivision, Fruit and Vegetable Programs,AMS, USDA; of all lots that fail to meetthe maximum aflatoxin requirements bycompleting this form and submitting itwithin 10 days of failed aflatoxintesting.

(2) Form FV–251 Imported Pistachios—Rework and Failed Lot Disposition. Each importer who reworksa failing lot of pistachios shall completethis report and shall forward it toCustoms and the Marketing Order andAgreement Division, Fruit andVegetable Programs, AMS, USDA, nolater than 10 days after the rework iscompleted. If rework is not selected asa remedy, the importer shall completeand submit this form within 10 days of alternate disposition of the lot.

(i) Exemptions. Any importer may

import pistachios free of therequirements of this section if suchimporter imports a quantity notexceeding a total of 5,000 dried pounds

 between September 1 and August 31 of each year. Substandard pistachiosimported for use in non-humanconsumption outlets shall be subject tothe safeguard provisions contained in§ 999.500.

(j) Reconditioning prior toimportation. Nothing contained in thissection shall be deemed to precludereconditioning pistachios prior toimportation, in order that such

pistachios may be made eligible to meetthe applicable aflatoxin regulationsprescribed in paragraphs (c) through (f)of this section.

(k) Comingling. Certified lots of pistachios may be comingled with othercertified lots, but the comingling of certified lots and uncertified lots shallcause the loss of certification for thecomingled lots.

(l) Retesting. Whenever USDA hasreason to believe that importedpistachios may have been damaged ordeteriorated while in storage, USDA

may reject the then effective inspectioncertificate and may require the owner of the pistachios to have them retested toestablish whether or not such pistachiosmay be shipped for humanconsumption.

(m) Compliance. Any person whoviolates any provision of this sectionshall be subject to a forfeiture in the

amount prescribed in section 8a(5) of the Agricultural Marketing AgreementAct of 1937, as amended; 7 U.S.C. 601–674), or, upon conviction, a penalty inthe amount prescribed in section 8c(14)of the said Act, or to both such forfeitureand penalty. False representation to anyagency of the United States on anymatter within its jurisdiction, knowingit to be false, is a violation of 18 U.S.C.1001, which provides for a fine orimprisonments or both.

(n) Other import requirements. Theprovisions of this section do notsupersede any restrictions or

prohibitions on pistachios under theFederal Plant Quarantine Act of 1912, orany other applicable laws or regulationsof city, county, State, or FederalAgencies including the Federal Food,Drug and Cosmetic Act.

Dated: October 14, 2011.

David R. Shipman,

Acting Administrator, Agricultural Marketing Service.

[FR Doc. 2011–27285 Filed 10–20–11; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA–2011–1139; DirectorateIdentifier 2011–CE–021–AD]

RIN 2120–AA64

Airworthiness Directives; SOCATAAirplanes

AGENCY: Federal AviationAdministration (FAA), Department of Transportation (DOT).ACTION: Notice of proposed rulemaking

(NPRM).SUMMARY: We propose to adopt a newairworthiness directive (AD) forSOCATA Model TBM 700 airplanes.This proposed AD results frommandatory continuing airworthinessinformation (MCAI) originated by anaviation authority of another country toidentify and correct an unsafe conditionon an aviation product. The MCAIdescribes the unsafe condition as:

A TBM 700 operator reported a case of inverted installation of aileron control cables

in the wing. The shortest cable was foundinstalled instead of the longest one on wingtip side, with left hand (LH) threaded end inupper section. This wrong installation couldhave been caused by mistaken maintenancedata.

This condition, if not detected andcorrected, could lead to restricted movementof the aileron, resulting in reduced control of the aeroplane, particularly when operating

under adverse flight conditions on landingand during avoidance manoeuvres.

The proposed AD would requireactions that are intended to address theunsafe condition described in the MCAI.

DATES: We must receive comments onthis proposed AD by December 5, 2011.

ADDRESSES: You may send comments byany of the following methods:

• Federal eRulemaking Portal: Go tohttp://www.regulations.gov. Follow theinstructions for submitting comments.

• Fax: (202) 493–2251.• Mail: U.S. Department of 

Transportation, Docket Operations,

M–30, West Building Ground Floor,Room W12–140, 1200 New JerseyAvenue, SE., Washington, DC 20590.

• Hand Delivery: U.S. Department of Transportation, Docket Operations,M–30, West Building Ground Floor,Room W12–140, 1200 New JerseyAvenue, SE., Washington, DC 20590,

 between 9 a.m. and 5 p.m., Mondaythrough Friday, except Federal holidays.

For service information identified inthis proposed AD, contact SOCATA—Direction des Services—65921 TarbesCedex 9—France; telephone +33 (0) 6241 7300, fax +33 (0) 62 41 76 54, or for

North America: SOCATA NORTHAMERICA, 7501 South Airport Road,North Perry Airport (HWO), PembrokePines, Florida 33023; telephone: (954)893–1400; fax: (954) 964–4141; e-mail:[email protected]; Internet :http://mysocata.com. You may reviewcopies of the referenced serviceinformation at the FAA, Small AirplaneDirectorate, 901 Locust, Kansas City,Missouri 64106. For information on theavailability of this material at the FAA,call (816) 329–4148.

Examining the AD Docket

You may examine the AD docket onthe Internet at http://  www.regulations.gov; or in person at theDocket Management Facility between9 a.m. and 5 p.m., Monday throughFriday, except Federal holidays. The ADdocket contains this proposed AD, theregulatory evaluation, any commentsreceived, and other information. Thestreet address for the Docket Office(telephone (800) 647–5527) is in theADDRESSES section. Comments will beavailable in the AD docket shortly afterreceipt.

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