March 1, 1999

          Notice to Manufacturers, Producers, Formulators, 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)(1), 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)(1) 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.

II.  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
foreign country shall be deemed in violation of [FIFRA] when prepared or
packed according to the specifications or directions of the 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 and 8.   

III.  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
          foreign 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).

          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)(1).

          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 CFR 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 in 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 FURTHER INFORMATION

     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 Programs