EPA 730-N-99-001   . "
                  UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                WASHINGTON, D.C. 20460
                                                                              OFFICE OF
                                 ,       '    .                           PREVENTION, PESTICIDES AND
                                                                ,   '        TOXIC SUBSTANCES

                    PESTICIDE REGISTRATION (PR) NOTICE 99-1
            Notice to Manufacturers, Producers, Eormulators, Registrants and

                             Importers of Pesticide Products


ATTENTION:      Persons Responsible for the Importation of Pesticide Products

SUBJECT:         .Import of Unregistered Pesticides Intended for Export
I. SUMMARY

       This Pesticide Registration (PR) notice clarifies EPA's interpretation of the scope of the
Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) Section 17 (a)(l), as it relates to the
import of unregistered pesticides,  devices or active ingredients used'in producing a pesticide when
the importation is solely for the purpose of formulation or packaging for subsequent export.
Under the interpretation provided in this PR notice, such pesticides do not require registration
under FIFRA, as long as they comply with the provisions outlined below. This interpretation is
effective immediately.

       In general, unregistered pesticides and unregistered active ingredients are not permitted to
be imported. However, if a pesticide or unregistered.active ingredient is being imported for the
sole purpose of meeting the specifications of a foreign purchaser, such an import is permitted.
The Agency interprets Section 17(a)(l) to allow the importation of unregistered pesticides or
unregistered active ingredients used in producing a pesticide, provided the ultimate pesticide is
produced for export only according to the specifications of the foreign purchaser. This policy
does not authorize the importation of unregistered pesticide for the purpose of producing a U.S.
registered product, even if part or all of that production is intended for export.
                                                               V        * ""  ,      r •      .
IL BACKGROUND

       The Agency has received requests from a number of companies to allow importation of
unregistered pesticidal active ingredients for the purpose of allowing reformulation into a
pesticide intended to be exported. The requestors have essentially asked the Agency to interpret
section 17(a) of FIFRA in a way that would exempt such importation from the requirements of
FIFRA. That section provides in part that "no pesticide or device or active ingredient used in
producing a pesticide intended solely for export to any fpreign country shall be deemed in
violation of [FIFRA] when prepared or packed according to the specifications or directions of the
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foreign purchaser," provided the producers of such pesticides, devices, or active ingredients used
in producing pesticides comply with various specified provisions of FIFRA sections 2, 7 arid 8.

HI.  CLARIFICATION OF SCOPE OF SECTION 17

       A. Conditions Permitting Import

       Having considered this issue, EPA believes there are certain circumstances under which
unregistered pesticides and/or active ingredients may be imported into this country consistent with
section 17. Specifically, EPA will consider importation of an unregistered  pesticide or active
ingredient into this country to be a lawful act under FIFRA if all of the following conditions apply:

             1.   The foreign producing establishment is registered under FIFRA Section 7 and
             is compliant with Section 7 reporting requirements.

             2.   Importation of the unregistered pesticide or active ingredient complies with
             all applicable regulations and section  17 of FIFRA (including presentation of an
             EPA authorized Notice of Arrival which specifies the quantities to be exported to
             Customs upon entry into the U.S.).

             3.   The shipment otherwise complies with all applicable Customs laws and
             regulations.

             4.  Upon lawful release by Customs, the imported unregistered pesticide or active
             ingredient is transported directly to a registered pesticide establishment.  The
             owner of such establishment shall be responsible for filing an appropriate report
             under FIFRA section 7 concerning such imported pesticide or active ingredient
             which indicates the relevant activity, such as reformulation, relabeling or
             distribution.

             5.  Section 17(a) allows distribution (and importation) of an unregistered
             pesticide or active ingredient only if the pesticide or active ingredient are intended
             solely for export and have been prepared or packaged  according to the
             specifications of the foreign purchaser. EPA interprets this to mean that the
             importation (and any subsequent movement) may occur only after a foreigri
             purchaser has been identified and has provided the specifications for the exported
             product.

             6.  After the final product for export is formulated and packaged, any distribution
             or shipment of the product must be solely for the purpose of facilitating export of
             the product (i.e.. all movement of the product must be directly related to exporting
             the product, such as shipment to a warehouse awaiting export, dock or broker).
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              7.  The unregistered pesticide or active ingredient, and each person with any
              obligation under FIFRA section 2, 7, or 8 with respect to the unregistered
              pesticide or active ingredient, are at all times in compliance with all the. applicable
              provisions of FIFRA identified in 17(a)(l)7

              8.  The export of any unregistered pesticide or active ingredient complies with the
              purchaser acknowledgment requirements of 17(a)(2) of FIFRA.

              9.  The importer can demonstrate that, ultimately, all of the product has been
              exported, or is being held pending export.

       B. Conditions after importation

       EPA will consider any shipment or distribution after the original importation to a
registered facility in the United States to be permissible under FIFRA (including section 17(a))
under the following conditions:

       1. The shipment is either in compliance with 40 GFR 152.30 (a) (the shipment is between
       registered establishments owned or operated by the same producer) or,

       2. The shipment is distributed only to facilitate export (the pesticide or active ingredient
       has been prepared or packaged according to the specifications of an identified foreign
       purchaser). '   •        '                    .

If any other shipments or distributions of an unregistered pesticide or active ingredient are made
hi the United States after the initial importation,  the shipper is advised to have evidence indicating
that the shipment conforms to the conditions outlined above. By way of example, such evidence
could include an identification of the, foreign purchaser, an explanation of why the shipment or
distribution is necessary to facilitate legal export of a product under section 17(a) of FIFRA
Failure to produce such evidence could result in otherwise unnecessary stopping of the shipment,
and/or a violation of FIFRA for selling or distributing an unregistered pesticide outside this
limited exemption.

IV. FOR FURTHERINFORMATION

       Any questions should be directed to: Cathleen M. Barnes, Government and International
Services Branch, Field and External Affairs Division (7501C), Office of Pesticide Programs,
USEPA,  401 M Street, S.W., Washington D.C., 20460, phone:703-305-7101, fax:703-308-1850,
e-mail: barnes.cathleen@epa.gov.   '           .
                                               Marcia E. Mulkey
                                               Director, Office of Pesticide Pi/ogranis
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