July 22, 2024 Mission, Texas: The Texas International Produce Association (TIPA) BB #:162361 is pleased to announce a significant victory for the fresh produce industry and the American consumer as the U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) proposes revisions to the Section 8e import inspection fee structure for fresh fruits, vegetables, and other products.
This landmark achievement follows three years of dedicated collaboration between TIPA, USDA and fellow trade associations, such as the Fresh Produce Association of the Americas (FPAA) and the International Fresh Produce Association (IFPA).
These efforts began in 2021 when regional importers started discussing the financial burden of USDA inspections, which ranged from $1,000 to $1,800 per load. The varying brands and pack sizes ordered by stores significantly increased inspection costs. Each distinct brand, container type, size, and grade incurred additional sublot fees.
According to USDA guidelines, 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. These cumulative fees made inspection costs per load prohibitively expensive.
Avocados, tomatoes, and grapes were among the commodities most affected by these $1,000-plus inspection fees.
“Given the massive volume of these items being imported, the added costs significantly impacted the final price of goods, ultimately burdening the American consumer with hundreds of millions of dollars in additional expenses,” said Dante Galeazzi, President & CEO of TIPA.
Importantly, the changes being proposed introduce a 50 percent reduction in the sublot fees. Such a reduction is anticipated to yield substantial savings for customers, particularly those with loads carrying a variety.
Galeazzi remarked, “We applaud and thank USDA for hearing the industry’s concerns and developing a more equitable fee structure which accurately reflects the realities of modern practices and inspection methods. This new fee schedule is a testament to the power of collaboration and advocacy, and reinforces the importance of a strong working partnership with our government partners.”
Among the proposed changes to the regulations is the introduction of a per-pound fee structure for certain Section 8e import inspections. This adjustment aligns inspection costs with the actual time and resources required by the AMS Specialty Crops Program (SCP) Specialty Crop Inspection (SCI) division, providing a more accurate and equitable fee assessment for shippers.
Galeazzi added, “The substantial reduction in sublot fees will provide immediate financial relief to our members, ensuring they can continue to deliver high-quality produce to consumers without the burden of disproportionate inspection costs.” One of the most notable benefits of the revised fee structure is the significant cost savings for avocado shippers, among other commodities. This adjustment is expected to ease financial burdens and improve the overall efficiency of the inspection process.
The proposal is currently posted to the U.S. Federal Registry, under “AMS-SC-23-0009.” Comments are due by August 19, 2024.
The Texas International Produce Association remains committed to working alongside industry partners and regulatory bodies to ensure the continued growth and success of the fresh produce sector. This milestone achievement marks a significant step forward in ongoing efforts to advocate for fair and practical regulations.
About the Texas International Produce Association
The Texas International Produce Association (TIPA) is a nonprofit organization dedicated to educating, advocating, promoting, and representing the over $13 billion of fresh fruits and vegetables that are grown in Texas or consider Texas their first point of arrival for domestic distribution. TIPA was created in 1942 by a group of industry leaders who shared a vision to expand the region’s produce industry. Today, TIPA represents over 450 member companies throughout the fresh produce supply chain. Membership ranks include growers, shippers, grocery stores, foodservice distributors, importers and a host of allied industries. For more information, please visit www.texipa.org.
Contact:
Sabrina Fisher
Director of Marketing & Communications
Texas International Produce Association
e: sabrina.fisher@texipa.org
t: 956-581-8632
w: www.texipa.org
w: www.vivafreshexpo.com
