USDA Proposes New Regulations on Fruit and Vegetable Inspections

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USDA Proposes Revising Section 8e Import Inspection Fee Structure

by: Food and Drug Law at Keller and Heckman of Keller and Heckman LLP - The Daily Intake

Friday, June 21, 2024

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Today, the U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) announced it has proposed revisions to regulations that govern the inspection and certification of fresh fruits, vegetables, and other products. Proposed changes include a per-pound fee structure for certain Section 8e import inspections, a minimum fee equivalent to a 2-hour charge, whichever is greater, and a 50% reduction to the sublot fee.
Section 8e of the Agricultural Marketing Agreement Act of 1937 (AMAA) applies to specific fruit, vegetable, and specialty crop imports into the United States. The law requires imported products to meet the same or comparable grade, size, quality and maturity standards as domestic products covered by Federal marketing orders.
The current measurement used is a carlot, which is defined as “any number of containers which contain a product of the same kind located on or unloaded from the same conveyance and available for inspection at the same time and location” (7 CFR 51.2). Modern shipping methods can vary in size and therefore will vary in weight. A per-pound fee schedule is intended to ensure AMS Specialty Crops Program (SCP) Specialty Crop Inspection (SPI) recovers costs for the actual time and resources needed to inspect the product and to allow shippers to more accurately assess the costs of inspections.
Under the proposed rule, customers with loads currently subject to additional sublot fees would see a 50% decrease in sublot fee costs. A sublot is generated when “the product differs markedly as to quality and/or condition, and such differences are definitely associated with certain brands, varieties, sizes or container markings.”
The proposed rule was published to the Federal Register on June 20, 2024, and written comments must be submitted by August 19, 2024.
Keller and Heckman will continue to monitor and relay any developments in the rulemaking process.