TIPA Celebrates Major Milestone after Three Years of Collaborative Effort
In a July 22 press release, the Texas International Produce Association announced “a significant victory for the fresh produce industry and the American consumer” after the USDA proposed revisions to Section 8e import inspection fee structure for fresh fruits, vegetables, and other products.
TIPA applauded the move by USDA AMS, calling it a “landmark achievement” that came after “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).”
The release said, “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.”
TIPA President/CEO Dante Galeazzi said, “Given the massive volume of… 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.”
The release continued, “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 said, “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.”
The proposed changes to the regulations include “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 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,” the TIPA release said.
