Overview
Title
Mango Promotion, Research and Information Order; Removal of Frozen Mangos
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ELI5 AI
The government decided that frozen mangos don't need to pay for promotions anymore, so people selling frozen mangos won't have to be part of a special mango group, making things simpler for them.
Summary AI
The USDA's Agricultural Marketing Service has amended the Mango Promotion, Research, and Information Order to remove frozen mangos as a covered commodity, following a referendum where the majority of first handlers and importers voted against their inclusion. This change discontinues the collection of assessments for frozen mangos and reduces the National Mango Board's membership from 21 to 18 members. These changes are intended to relieve regulatory burdens on frozen mango importers and streamline the Order's provisions, including clarifying definitions and updating voting procedures. The rule became effective on February 25, 2021, and stakeholders are invited to submit comments by April 26, 2021.
Abstract
This rule amends the Mango Promotion, Research and Information Order (Order) by removing the provisions of frozen mangos as a covered commodity. The Order is administered by the National Mango Board (Board) with oversight by the U.S. Department of Agriculture (USDA). In a referendum, first handlers and importers voted to remove frozen mangos as a covered commodity under the Order. This rule will remove frozen mangos as a covered commodity, discontinue the collection of assessments on frozen mangos, remove frozen mango entity representation on the Board, and make necessary conforming changes.
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AnalysisAI
The document in question is an interim rule issued by the United States Department of Agriculture's Agricultural Marketing Service. This rule modifies the Mango Promotion, Research, and Information Order by removing frozen mangos as a covered commodity. Essentially, this means that frozen mangos will no longer be subject to certain promotional assessments and regulations under this particular order.
General Summary
The rule effectively halves the National Mango Board's membership by eliminating frozen mango representatives, reducing the board from 21 to 18 members. This change is a result of a referendum where slightly less than half of the participants voted against retaining frozen mangos as part of the order, with a significant 9% abstaining from voting. By implementing these revisions, the rule aims to relieve the regulatory burden on businesses involving frozen mangos, which includes halting assessment collections from these entities.
Significant Issues and Concerns
One primary issue with this document is that it might be seen as favoring fresh mangos over frozen varieties without robust justification. The change was enacted following a close vote in which 49% supported the removal of frozen mangos from the order, suggesting that nearly half of the stakeholders were in favor of its retention.
Furthermore, the document relies heavily on legalese and references to U.S. legislative codes and orders. Such jargon may be challenging for individuals without legal or governmental knowledge to fully comprehend the implications of the rule changes. Additionally, the process by which the second question was added to the referendum is not thoroughly explained, potentially leading to perceptions of a lack of transparency.
Another notable concern is the absence of a detailed economic analysis regarding the impact on small businesses, especially those involved in the frozen mango supply chain. There might be an insufficiency in assessing how this rule change could affect the economic landscape for these stakeholders.
Broader Public Impact
For the general public, the changes in this rule might translate to alterations in the availability or pricing of frozen mangos. By eliminating assessments on these goods, costs could potentially decrease for suppliers, which might be passed on to consumers. However, the diminished promotional push for frozen mangos could lead to reduced visibility and consumer interest in this product variety.
Impact on Specific Stakeholders
The rule’s most direct negative impact could be felt by businesses and importers in the frozen mango industry, as they lose represented voices on the National Mango Board. This loss might be perceived as putting these stakeholders at a disadvantage compared to their fresh mango counterparts.
Conversely, one potential positive outcome for frozen mango stakeholders is the reduction in regulatory and financial obligations, as they are no longer required to complete assessment forms or pay fees previously levied on frozen mango imports. This relief might allow them to allocate resources more efficiently within their businesses, possibly leading to cost savings and operational adjustments favorable to their bottom line.
Conclusion
The removal of frozen mangos from the order represents a notable shift in the focus of the National Mango Board and its covered commodities. While creating efficiencies and reducing certain burdens, it also raises questions about representation and equity between different sectors within the mango industry. The broader implications of these changes underscore the complexities involved in regulatory adjustments, impacting stakeholders in varying ways depending on their position within the industry.
Financial Assessment
The federal rule discussed involves financial implications primarily centered on the removal of frozen mangos from the Mango Promotion, Research, and Information Order. This change results in several financial adjustments worth examining.
Elimination of Assessments on Frozen Mangos
The rule specifies that, previously, frozen mangos were subject to an assessment rate of $0.01 per pound. With this rule change, these assessments are being discontinued, which can relieve importers of frozen mangos from the financial burden associated with this cost. The termination of assessment collection offers direct financial savings for businesses dealing with frozen mangos as they will no longer need to pay this fee, potentially improving their financial standing by reducing operational costs.
Effects on Small Business
The implications of financial changes from the rule context can be better understood by considering the classification of small businesses affected. The document notes that small agricultural producers and firms are those with annual receipts below $750,000 and $7.5 million, respectively. The majority of mango first handlers and importers reportedly fall within this small entity classification.
The removal of financial burdens, such as assessments, could be viewed positively from the perspective of small businesses. However, the document acknowledges a gap concerning a detailed economic analysis that assesses the impact on these entities. Without this analysis, there is uncertainty regarding whether these rule changes provide a net positive effect on financial viability for small businesses within the frozen mango sector or if there are unintended negative consequences.
Allocation of Board Membership
Financial allocations also indirectly relate to the management structure by affecting the National Mango Board's membership. The rule stipulates a reduction in the board membership from 21 to 18 by eliminating positions associated with frozen mango entities. While not a direct financial allocation, this adjustment could have fiscal implications relating to board governance and representation.
Broader Economic Context
The broader economic context for this removal involves industry sentiment about the inclusion and significance of frozen mangos within the Order. Despite the cost-saving measure from the eliminated assessments, the financial reference underscores an issue regarding industry preferences and potential bias — significant in that 49% of participants voted for removal, while 9% did not vote. This raises questions on whether the rule appropriately captures the industry's current needs and financial interests, as the decision was not an overwhelming majority. This unrepresentative vote might incite concerns of economic bias benefiting fresh mangos over frozen, impacting financial perceptions in the industry.
In conclusion, the financial references in this rule are pivotal in understanding the monetary changes resulting from the exclusion of frozen mangos. While reducing costs for some, it leaves room for further analysis and consideration about broader economic impacts and fairness within the industry.
Issues
• The rule removes frozen mangos from the list of covered commodities, which results in reducing the Board's membership. This could potentially be seen as favoring the fresh mango industry over the frozen variety without clear justification provided in the document.
• The document uses regulatory and legal jargon that might be difficult for a layperson to understand, such as references to specific sections of the Code of Federal Regulations (CFR) and the use of terms like 'assessment rate' and 'Harmonized Tariff Schedule' without clear definitions.
• The rationale for removing frozen mangos from the covered commodity list is based on a referendum where only a 49% majority voted for the elimination, while 9% did not vote. The unrepresentative nature of the vote might raise concerns.
• The decision-making process and criteria used for adding the second question in the referendum related to frozen mangos are not fully explained, which might lead to claims of non-transparency.
• The document refers to Executive Orders and other legislative acts, assuming the reader's familiarity with these, which might not be the case for all stakeholders.
• There’s a lack of detailed economic analysis on how this rule change will impact small businesses involved in the frozen mango industry, which could raise concerns of inadequate evaluation of economic impact.