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AMS Proposes to Increase FY 2007-2008 Inspection Fees for Fresh Fruit and Vegetables, Etc.

The Agricultural Marketing Service (AMS) has issued a proposed rule that would revise 7 CFR 51.38 governing the inspection and certification for fresh fruits, vegetables and other products by increasing certain fees charged for the inspection of these products at destination markets for the next two fiscal years (FYs) (FY 2007 and FY 2008) by approximately 15%.

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(AMS explains that this proposed rule would amend the schedule for fees and charges for inspection services rendered to the fresh fruit and vegetable industry to reflect the costs necessary to operate the program.)

Inspections are Required Only for Certain Imported Commodities, All Other Inspections and Grading Services are Voluntary

According to AMS, inspections and fees are required only for certain imported commodities in accordance with the Agricultural Marketing Agreement Act of 1937, as amended (AMAA), and for imported peanuts under section 1308 of the Farm Security and Rural Investigation Act of 2002.

Currently, there are 14 commodities subject to import regulations under the AMAA (Section 8e): Avocados, dates (other than dates for processing), filberts, grapefruit, kiwifruit, olives (other than Spanish-style green olives), onions, oranges, potatoes, prunes, raisins, table grapes, tomatoes and walnuts. Grading and quality inspection by AMS is required for each lot (shipment) imported.

According to U.S. Department of Agriculture (USDA) sources, inspections for all other fresh fruits, vegetables, and other products (such as certain kinds of raw nuts, Christmas trees and flowers), are voluntary. However, the same inspection fees listed under 7 CFR 51.38 apply to both voluntary and required inspections.

(According to AMS sources and information posted to the AMS Web site, a commodity required to be inspected under the AAMA Section 8e must be inspected for size, grade, and quality requirements to receive a U.S. or Canadian Inspection Certificate. (The Canadian Inspection Certificate is only honored for tomatoes, potatoes, and onions.) According to AMS sources, all inspected commodities, whether required under AMAA Section 8e, or voluntary, are issued a certificate. Instructions for importing a commodity that requires inspection may be found at http://www.ams.usda.gov/fv/8eWhatdoIdo.html.)

Voluntary Inspection Applicants May Specify Type of Inspection

According to information posted to the AMS Web site, voluntary applicants for grading and inspection services may specify the type of inspection they desire. According to AMS sources, applicants generally request a quality and condition inspection to determine whether the fruit or vegetables meet minimum grade requirements. Applicants may also request a container weight or count only inspection or may request an inspection based on contract specifications. The requested service determines the cost of the inspection.

(See AMS' proposed rule for a complete list of the proposed fees for FY 2007-2008.)

-written comments must be postmarked, courier dated or sent via the Internet on or before January 2, 2007

AMS contact - Rita Bibbs-Booth (202) 720-0391

AMS proposed rule (D/N FV-06-308, FR Pub 12/01/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-20315.pdf