International trade in live, ornamental "fish" in the U.S. and Florida

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International trade in live, ornamental "fish" in the U.S. and Florida
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Adams, Charles M.
Larkin, Sherry L.
Degner, Robert L.
Lee, Donna J.
Milon, J. Walter
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Food and Resource Economics Department, University of Florida
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Gainesville, Fla.
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Copyright Date:
2000

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Funding:
This article was developed under the auspices of the Florida Sea Grant College Program with support from the National Oceanic and Atmospheric Administration, Office of Sea Grant, Department of Commerce, Grant No. NA76RG-0120.

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International Trade in Live, Ornamental "Fish" in the U.S. and Florida


Charles M. Adams, Sherry L. Larkin, Robert L. Degner, Donna J. Lee, and
J. Walter Milon

Food and Resource Economics Department
Institute of Food and Agricultural Sciences
University of Florida
P.O. Box 110240
Gainesville, FL 32611-0240


Abstract
The importance of international markets as a source of live, ornamental "fish" supply is
growing due to more stringent wild-harvest regulations in Florida. In addition, foreign
markets are increasing in importance as a source of demand for Florida purveyors of live,
ornamental "fish". Florida plays an important role in this growing international market.
Trends in imports and exports of live, ornamental "fish" are described for two primary
data sets: U.S. Customs and U.S. Fish and Wildlife Service. These trends are described
primarily for the 1994-98 period for Florida and the U.S. Florida imports and exports are
described for the two major ports: Miami and Tampa. The most important trading
countries are also described. This information will help Florida purveyors of live,
ornamental "fish" better understand the international markets upon which they have
become more dependent.


Key Words
Live ornamental fish, international trade, exports, imports



This article was developed under the auspices of Florida Sea Grant College Program with
support from the National Oceanic and Atmosphere Administration, Office of Sea Grant,
Department of Commerce, Grant No. NA76RG-0120.











International Trade in Live, Ornamental "Fish" in the U.S. and Florida


I. Introduction

Trade in freshwater and marine live ornamental species represents an important market
and supply source for the domestic aquatic ornamental industry. The primary sector of
this industry in the U.S. is the aquarium hobby industry, which is purported to now be the
second most popular hobby in the U.S. (Pet Industry Joint Advisory Council, 1999).
Along with imported species, the demand by domestic hobbyists and other users of live
marine ornamentals has been partially supplied by wild specimens collected primarily in
Florida. However, as this industry has continued to increase in popularity and economic
importance, so has concern over the sustainable use of these domestic marine life
resources. As a result, more stringent domestic harvest regulations have increasingly
limited the total supply of marine life species that can be harvested from domestic waters,
thereby increasing the importance of international sources. For example, the total
dockside value of marine life landed in Florida during 1998 was $1.9 million. Freshwater
species are either cultured in Florida ($43 million farm gate sales in 1999) or imported.
The value of live, ornamental "fish" (both freshwater and marine) imported into Florida
during the same year was $5.7 million. In addition, the world market for live marine
ornamentals has somewhat mirrored the growth observed in the U.S. market, making
foreign markets of greater importance to domestic wholesalers of live marine
ornamentals.

This paper will describe the U.S. trade in live, ornamental "fish" during the 1994-98
period. Unfortunately, the data are not readily available to disaggregate trends for
freshwater and marine species. Imports and exports will be discussed by country of
origin and destination. In addition, trends in international trade in live ornamentals
through Florida ports of entry will be described. Where possible, these trends will be
described by product form. The two major sources of data will also be compared and
contrasted. The discussion will serve to highlight the relative importance of the
international market for this increasingly important market to purveyors of live marine
ornamentals in Florida.


II. Data Sources

There are two major sources of data by which the international trade in live, ornamentals
can be described. These data originate from the U.S. Bureau of Census and the U.S. Fish
and Wildlife Service.

The Bureau of Census data are obtained from the U.S. Customs office, which records
data on declarations of international shipments as required by law for nearly all overseas











shipments and receipts. Products described as "Live Ornamental Fish" are given a
specific harmonized tariff 10-digit code by the U.S. International Trade Commission
(HTS 0301100000). This product category will exclude other live aquatic commodities
that may be used for human consumption, such as live food fish. The value of these
shipments is then recorded by Customs. Volume, or quantity, is not recorded by
Customs.

The Customs export data reported in this study include only domestic exports, not
transshipments of foreign product. Exports are valued as "free alongside ship" (FAS). In
addition, the actual export (and import) value may be understated given that only those
shipments with a declared value in excess of $1,251 were recorded by Customs during
the 1989-98 period. The degree to which the declared value and actual shipment values
differ (if, for example, the total declared value is under reported due to exclusion of
shipments valued at less than $1,251) cannot be determined. Since 1998, Customs has
increased the minimum value for reporting to $2,000.

Import value is defined as the Customs Import Value, which is the value appraised by
Customs at the first port of arrival (excluding import duties, freight, insurance, and other
charges). Further, the Bureau of Census data do not provide any information on the
species or product forms being shipped. In fact, the use of the term "fish" in the
definition of the code is misleading in that other forms of live, marine ornamental species
may be included, such as mollusks (i.e., snails, clams, etc.) crustaceans (i.e., shrimps,
crabs, etc.), echinoderms (i.e., starfish, sand dollars, etc.) and other non-finfish species.
The data also do not allow a distinction between marine and freshwater species. Thus,
the data describe the total trade in all species of live, ornamental aquatic organisms.

The U.S. Fish and Wildlife Service (USFWS) also compiles data on the international
trade of live, ornamental aquatic species. These data are taken from Customs shipment
declaration forms (Form 3-177), which are completed for each shipment that arrives or
exits a given U.S. port of entry. These forms provide more detail than available via
reported Bureau of Census data in that three general "species groups" are delineated in
the data:
(1) non-CITES invertebrates (i.e., invertebrate species that are not listed under the
Convention on International Trade in Endangered Species) (designated as
NONV),
(2) other live invertebrates contained in tropical fish and other shipments (designated
as OLIN), and
(3) all live tropical fish including goldfish (designated as TROP).

The individual names of the various species in each shipment are not data based by
USFWS, although they do appear on the Form 3-177. Thus, the distinction between
marine and freshwater species cannot be identified through the existing data sets. A more
detailed treatment of the USFWS data would have been prohibitive given that each Form
3-177 can include many pages of quantity and value data for each species shipped











(Chapman et. al., 1997). Only careful scrutiny of the original Forms can provide this
information, an exhaustive effort that was clearly outside the scope of this study.

USFWS data exclude shipments where the designation codes for import or export were
not recorded, which represent between 1 and 5 percent of the total (declared) annual trade
value. USFWS does not exclude imports and/or export shipments of live ornamental
species based on the magnitude of the shipment value as does Customs. A cursory
examination of USFWS Law Enforcement Management Information System (LEMIS)
declared export/import shipment data for live tropical fish shipments via U.S. west coast
ports of entry found that 44 percent of all shipments were valued less than $1,251.
Exclusion of the aggregate value of these relatively small-valued shipments may have a
significant impact on the total reported values of imports and exports of live, ornamental
species.

The Bureau of Census value data will be described on an annual basis for the 1989-98
period, while the discussion of annual USFWS data will be confined to the 1994-98
period (only the last 5 years are available via USFWS). The 1994 data for USFWS
includes only March through December, due to USFWS archiving restrictions (i.e., only
the last 60 months are retained in the system) and the timing of our Freedom of
Information Act data request.

Given that information on shipment quantity is not reported for the Customs data, the
trends in international trade of live, ornamental aquatics species focus on the declared
values of both exports and imports. The total number of specimens imported across all
species is reported for the USFWS data.


III. Trends in U.S. Imports and Exports

The discussion in this section will address trends in total U.S. imports and exports of live,
ornamental species. The data provided by U.S. Customs and USFWS will be addressed
separately. The data represent a summation of annual imports and exports over all U.S.
ports of entry, including those located in Florida (the latter will be discussed separately in
a later section of this report).

III.A. U.S. Customs Data

The value of imported live, ornamental "fish" (HTS 0301100000) was estimated to be
$45.1 million in 1998 (Table 1). This value represents a decline from a peak of $54.3
million during 1995. Annual import values had increased to the peak value during the
1989-94 period. The reported domestic export values for live, ornamental "fish"
mirrored those for imports. Export values increased from $8.6 million in 1989 to a peak
of $19.8 million in 1995, then decreased steadily to $10.5 million in 1998. The three-
year decline was somewhat more dramatic for export values (-47 percent) than that











observed for imports (-17 percent) over the same period. When import values exceed
export values, a negative trade balance (i.e., deficit) exists. A trade deficit for live,
ornamental "fish" existed for every year during the 1989-98 period. The trade deficit for
live, ornamental "fish" averaged approximately $31 million over the 1989-98 period,
although the deficit averaged about $35 million during the last four years. The annual
ratio of import value (I) to export value (E), or I/E, has averaged 3.26 during the 1994-98
period (1.0 equals trade balance). Trends during 1982-92 are described in Thunberg et.
al. (1993).


Table 1. Trends in Live Ornamental "Fish"
(U.S. Customs data in 1,000 $)


Imports and Exports


Year Import Value Export Value Trade Balance

1989 38,213 8,591 (29,622)
1990 40,992 11,646 (29,346)

1991 36,104 12,747 (23,357)
1992 41,123 15,136 (25,987)

1993 45,248 17,364 (27,884)
1994 46,769 18,866 (27,903)

1995 54,301 19,816 (34,485)
1996 53,026 15,461 (37,565)

1997 49,309 14,541 (34,768)
1998 45,096 10,533 (34,563)


During the 1994-98 period, the U.S. imported live, ornamental "fish" from 116 different
countries for a combined total of $248.5 million. The largest single country sources of
product included Thailand (18 percent), Singapore (18 percent), Indonesia (13 percent),
Hong Kong (10 percent), and the Philippines (9 percent). Other important import Asian
sources included Malaysia and Japan, with the most important western hemisphere
sources being Columbia, Peru, and Brazil. With the exception of imports from Hong
Kong and Japan, import values declined during 1998, with most sources exhibiting a
decline from a previous peak during 1995 or 1996 (although the import value from
Thailand peaked during 1997).

The U.S. exported live, ornamental "fish" to 68 different countries during the 1994-98
period, for a combined total export value of approximately $80 million (Table 2). The
top destinations for live, ornamental "fish" includes Japan (33 percent), Canada (26











percent), Hong Kong (9 percent), Brazil (6 percent), and Mexico (6 percent). The export
market for Canada has remained relatively stable during the five-year period. However,
the export values for the other major trading partners have exhibited declines. It is
notable that Hong Kong is both a major importer and exporter of live ornamental fish
with the U.S.

Table 2. Important Import Sources and Export Destinations for Live, Ornamental "Fish"
(U.S. Customs Data in 1,000 $)

Direction 1994 1995 1996 1997 1998

Imports:
Thailand 9,460 9,560 9,205 9,720 7,802
Singapore 8,567 9,557 9,745 8,726 7,939
Indonesia 6,055 6,517 7,183 6,518 5,575
Hong Kong 4,575 4,540 4,786 4,715 5,249
Philippines 4,146 5,152 4,822 4,595 4,001
Others 13,966 18,975 17,285 15,035 14,530
Total 46,769 54,301 53,026 49,309 45,096
Exports:
Japan 5,952 7,847 5,965 3,972 2,296
Canada 4,253 4,465 3,442 4,067 4,155
Hong Kong 1,977 1,807 1,426 1,427 651
Taiwan 2,076 1,220 416 488 116
Mexico 1,132 650 790 1,138 888
Others 3,476 3,827 3,422 3,449 2,427
Total 18,866 19,816 15,461 14,541 10,533



III.B. U.S. Fish and Wildlife Service Data

The USFWS data provide a different perspective on the magnitude of value of imports
and exports of live, ornamental "fish". The three categories of ornamental species are
NONV, OLIN, and TROP (as previously defined). The following discussion does not
include the values reported for NONV, which is ambiguous regarding the inclusion of
only live specimens. However, OLIN and TROP include only live invertebrates and/or
tropical fish. Most importantly, USFWS data (as reported on Form 3-177) do not exclude
shipments with values less than $1,251, as does Customs, which can represent a
significant share of the total number of shipments entering or leaving a given U.S. port.
Although the exact reason has not been identified, the annual import and export values











reported by USFWS are at least on order of magnitude higher than those reported via
Customs.

Import value (OLIN and TROP combined) through all U.S. ports of entry during 1998
was reported at $660.3 million (Table 3). This value had decreased from a peak of
$802.3 million during 1995. The 1995 import value represented an increase of over 50
percent from 1994. Export value (OLIN and TROP combined) exhibited a similar trend,
increasing from $253.4 million in 1994 to a peak of $378.4 in 1995, then decreasing
steadily to a five-year low of $182.2 million in 1998. The USFWS data indicates a more
dramatic trade deficit with respect to live, ornamental species. The trade deficit,
according to the USFWS data, increased from $266.1 million in 1994 to $478.1 million
(80 percent) in 1998. The annual ratio of import value to export value averaged 2.57
during the 1994-98 period.

Table 3. Trends in Value of Total Live Ornamental "Fish" Imports and Exports
(U.S. Fish and Wildlife Service data in 1,000 $)

Year Import Value Export Value Trade Balance
(OLIN + TROP) (OLIN + TROP)

1994 519,423 253,358 (266,065)

1995 802,301 378,407 (423,894)

1996 801,389 312,339 (489,050)

1997 695,560 277,517 (418,043)

1998 660,312 182,214 (478,098)


The trade in TROP as reported by USFWS is much higher than that reported for OLIN
(Table 4). The average annual import (export) value for TROP during the 1994-98
period is over 30 (45) times higher than that reported for OLIN. The value of OLIN
imports averaged approximately $20 million during the 1994-98 period, increasing from
a low of $13.1 million in 1994 to a peak of $23.4 million in 1995. Export value of OLIN
increased from $3.9 million in 1994 to a peak of $9.2 million in 1996, decreasing steadily
thereafter. The average annual import value for TROP during the 1994-98 period was
$676 million. The average annual export value for TROP during the same period was
$275 million. Both exports and imports have declined steadily since reaching peak
values in 1995.











Table 4. Trends in the Value of OLIN and TROP Imports and Exports
(U.S. Fish and Wildlife Service data, 1,000 $)

OLIN TROP

Year Imports Exports Imports Exports


1994 13,062 3,934 506,361 249,424

1995 23,391 6,299 778,910 372,108

1996 22,599 9,194 778,790 303,145

1997 19,482 5,727 676,078 271,790

1998 21,253 4,523 639,059 177,691


USFWS data also provides an estimate of the numbers of individual specimens that were
either exported or imported within the broad categories defined as OLIN and TROP
(Table 5). During the 1994-98 period, trade in TROP (imports and exports combined)
exceeded that reported for OLIN by 100-fold. For both product categories, the volume of
imports exceeded that reported for exports. Both OLIN and TROP have exhibited
declining volumes since either 1995 or 1996, with the largest percentage declines
associated with TROP imports (-25 percent since 1996) and exports (49 percent since
1995).

Table 5. Trends in the Quantity of OLIN and TROP Imports and Exports
(U.S. Fish and Wildlife Service data, millions of specimens)

OLIN TROP

Year Imports Exports Imports Exports


1994 17 2 2,100 496

1995 38 11 3,160 625

1996 32 4 3,276 509

1997 28 4 2,853 421

1998 32 3 2,460 320












USFWS data indicates that the U.S. imported or exported OLIN and/or TROP products
with over 170 countries. The most important TROP trading partners were basically the
same as found for the Customs data. The top OLIN trading partners were the Philippines,
Indonesia, Canada, Sri Lanka, and Haiti.


IV. Trade Flows Through Florida Ports

Imports and exports of live, ornamental species pass through two primary Florida ports:
Miami and Tampa. The following discussion describes the trade patterns for each port,
for both U.S. Customs (HTS 0301100000) and U.S. Fish and Wildlife Service (OLIN and
TROPP) data.

IV.A. U.S. Customs Data

Of all the live, ornamental "fish" imports arriving in Florida during the 1994-98 period,
88 percent passed through Miami; a similar percentage was found for Miami's share of
Florida's exports (Table 6). The remaining 12 percent of both imports and exports passed
through Tampa. Imports arriving into Miami declined steadily from a peak of $8.5
million in 1995 to $4.5 million in 1998. In contrast, exports from Miami have exhibited
an upward trend from $0.3 million in 1994 to $1.2 million in 1998. The combined value
of imports arriving in Miami and Tampa annually represented an average of 15 percent of
the total imports of live, ornamental "fish" arriving in all U.S. ports.

Table 6. Trends in Live Ornamental "Fish" Imports and Exports Passing
Through Florida Ports (U.S. Customs data in 1,000 $)

Imports Exports
Florida as Florida as
Year Miami Tampa % of U.S. Miami Tampa % of U.S.
Total Total

1994 4,519 1,191 13 942 407 13

1995 6,245 1,560 16 1,365 334 12

1996 7,255 1,057 16 1,795 257 13

1997 8,462 483 16 2,505 249 14

1998 5,923 324 13 4,071 217 23











Similar trends were exhibited with exports. The value of live, ornamental "fish" exported
through Miami declined from $4.1 million in 1994 to $0.9 million in 1998. However, the
value of Tampa exports increased from $0.2 million to $0.4 million during the same
period. Florida exports accounted for approximately 15 percent of the total U.S. exports
of live, ornamental "fish". The average annual value of imports during the 1994-98
period was $7.4 million, compared to $2.4 million for exports. Thus, the 3:1 ratio of
import to exports contributes to a reported average annual trade deficit of approximately
$5.0 million.

IV.B. U.S. Fish and Wildlife Service Data

Of all the OLIN and TROP imports arriving in Florida during the 1994-98 period, 90
percent passed through Miami (Table 7). Approximately 86 percent of the exports passed
though Miami. The remaining 10 percent and 12 percent of imports and exports,
respectively, passed through Tampa.

Table 7. Trends in OLIN and TROP (combined) Imports and Exports Passing
Through Florida Ports (U.S. Fish and Wildlife Service data in 1,000 $)

Imports Exports
Florida as Florida as
Year Miami Tampa % of U.S. Miami Tampa % of U.S.
Total Total

1994 1,213 7,231 15 49,558 9,674 24

1995 98,026 20,305 15 100,255 17,533 31

1996 132,773 13,016 18 113,278 17,848 42

1997 130,194 4,547 19 112,093 16,349 46

1998 44,017 5,914 8 100,054 15,060 63


Imports arriving in Miami increased from $44 million in 1994 to a peak of $132.8 million
in 1996, then declined to $71.2 million in 1998 (increasing 62 percent from 1994 to
1998). Exports from Miami have exhibited a similar trend, increasing to $113.3 million
in 1996, then decreasing to $49.6 million in 1998. Similar trends exist for the import and
export data for Tampa. As also suggested by the U.S. Customs data, the combined value
of imports arriving in Miami and Tampa annually represented an average of 15 percent of
the total value of imports of live, ornamental "fish" (in this case, OLIN and TROP)
arriving in all U.S. ports. Florida exports are much more important with respect to the
total U.S. export market, with Florida exports accounting for approximately 40 percent of











the total U.S. exports of OLIN and TROP specimens. Interestingly, the Florida share of
exports has declined significantly from 63 percent in 1994 to 24 percent in 1998. This
change in export share is more related to changes in export levels elsewhere in the U.S.,
although Florida exports declined dramatically during 1998. The average annual value of
imports during the 1994-98 period was $105.4 million, compared to $110.8 million for
exports. Thus, the virtual 1:1 ratio of import to exports contributes to a negligible
average annual trade deficit.


V. Summary

The international trade in live, ornamental aquatic species provides an important source
of product for the domestic market, while also providing an important market outlet for
wild-caught and cultured species. The wild-caught and cultured ornamental species
industry represents an important natural resource-based industry in Florida. The
increasingly stringent regulations on wild-caught species, and the growing domestic and
international markets have created an increased reliance by domestic purveyors on
international trade. In describing the market, similar trends are exhibited by both the U.S.
Customs and U.S. Fish and Wildlife Service data, although the magnitude of reported
imports and exports are considerably different between the two data sources. U.S.
Customs restricts reporting to only those shipments valued in excess of $1,251 (recently
increased to $2,000), while U.S. Fish and Wildlife Service attempts to report all
shipments. Customs data provides very little information on individual species, while
USFWS data contains information on three major categories. More detailed species
information is collected but is not maintained in a useable database by either agency.
Neither data set allows for a distinction between marine and freshwater species, although
the information could ultimately be mined from the original Form 3-177s archived by
USFWS. In addition, it is understood that USFWS will begin reporting import and
export data on a more detailed basis (more species codes), but this information was not
available for this report.

Florida represents an important domestic and international source of wild-caught and
cultured live aquatic species. Miami and Tampa also represent important state and
national nodes for the international markets, both in terms of importing and exporting.
Both Customs and USFWS data suggest that Florida accounts for about 15 percent of the
total live, ornamental "fish" imported into the U.S. The Customs data suggest that
Florida accounts for about 15 percent of the total U.S. exports as well, whereas the
USFWS data indicates the Florida share is much higher, approximately 40 percent.
Many other countries are involved in the international trade of live, ornamental "fish".
The most important trading partners are in Asia. However, important export markets
exist in Canada and Europe.

The analysis described in this paper could be improved with data that delineate between
marine and freshwater species. Data on an individual species basis would allow trends to











be described for the most important species imported and exported. These data are
available via the USFWS archived Form 3-177s, but the effort required to access and
record these data will be substantial. A description of the seasonality of import
availability and export demand would also help better describe the international market in
which Florida purveyors participate. Further, assessing the determinants of import
supply and export demand, with attention given to individual species price, would help
Florida growers of ornamental species better determine which new species or subspecies
to introduce into the market. Providing such an analysis on a species and country basis
would be invaluable.


References

Chapman, F.W., S. A. Fitz-Coy, E.M. Thunberg, and C.M. Adams. United States of
America Trade in Ornamental Fish. Journal of the World Aquaculture Society,
Vol. 28. No. 1, pp. 1-10.

Thunberg, E.M., J.T. Rodrick, C.M. Adams, and F.W. Chapman. (1993) Trends in
United States International Trade in Ornamental Fish, 1982-1992. International
Working Series Paper IW-93-19. Food and Resource Economics Department.
University of Florida. Gainesville. 58 pp.

U.S. Department of Commerce, Bureau of Census, Foreign Trade Division, General
Imports and Exports. Data describing the value of imported and exported
ornamental species (various years). Washington, D.C.

U.S. Department of the Interior, Fish and Wildlife Service, Office of Law Enforcement.
Data uploaded by U.S. Customs from Form 3-177 for quantity and value of
imported and exported ornamental fish (various years). Arlington, VA.

Pet Industry Joint Advisory Council (1999). U.S. Ornamental Aquarium Industry. Pet
Information Bureau. Washington, D.C. 2 pp.




Full Text

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International Trade in Live, Ornament al “Fish” in the U.S. and Florida Charles M. Adams, Sherry L. Larkin, R obert L. Degner, Donna J. Lee, and J. Walter Milon Food and Resource Economics Department Institute of Food and Agricultural Sciences University of Florida P.O. Box 110240 Gainesville, FL 32611-0240 Abstract The importance of international markets as a so urce of live, ornamental “fish” supply is growing due to more stringent wild-harvest re gulations in Florida. In addition, foreign markets are increasing in importance as a sour ce of demand for Florida purveyors of live, ornamental “fish”. Florida plays an important role in this growing international market. Trends in imports and exports of live, ornamental “fish” are described for two primary data sets: U.S. Customs and U.S. Fish and W ildlife Service. These trends are described primarily for the 1994-98 period for Florida a nd the U.S. Florida imports and exports are described for the two major ports: Miami a nd Tampa. The most important trading countries are also described. This inform ation will help Florida purveyors of live, ornamental “fish” better understand the international markets upon which they have become more dependent. Key Words Live ornamental fish, internat ional trade, exports, imports This article was developed under the auspices of Florida Sea Grant College Program with support from the National Oceanic and Atmosphe re Administration, Office of Sea Grant, Department of Commerce, Grant No. NA76RG-0120.

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1International Trade in Live, Ornament al “Fish” in the U.S. and Florida I. Introduction Trade in freshwater and marine live ornamental species repr esents an important market and supply source for the domestic aquatic orna mental industry. The primary sector of this industry in the U.S. is the aquarium hobby industry, which is purported to now be the second most popular hobby in the U.S. (Pet Industry Joint Adviso ry Council, 1999). Along with imported species, the demand by do mestic hobbyists and other users of live marine ornamentals has been pa rtially supplied by wild specimens collected primarily in Florida. However, as this industry has c ontinued to increase in popularity and economic importance, so has concern over the sustai nable use of these domestic marine life resources. As a result, more stringent dom estic harvest regulati ons have increasingly limited the total supply of marine life species th at can be harvested from domestic waters, thereby increasing the importance of international sources. For example, the total dockside value of marine life landed in Fl orida during 1998 was $1.9 million. Freshwater species are either cultured in Florida ($43 million farm gate sales in 1999) or imported. The value of live, ornamental “fish” (both fr eshwater and marine) imported into Florida during the same year was $5.7 million. In ad dition, the world market for live marine ornamentals has somewhat mirrored the grow th observed in the U.S. market, making foreign markets of greater importance to domestic wholesalers of live marine ornamentals. This paper will describe the U.S. trade in live, ornamental “fish” during the 1994-98 period. Unfortunately, the data are not read ily available to disa ggregate trends for freshwater and marine species. Imports a nd exports will be disc ussed by country of origin and destination. In addition, trends in international trade in live ornamentals through Florida ports of entry will be describe d. Where possible, these trends will be described by product form. The two major s ources of data will also be compared and contrasted. The discussion will serve to highlight the relative importance of the international market for this increasingly im portant market to purveyors of live marine ornamentals in Florida. II. Data Sources There are two major sources of data by which the international trade in live, ornamentals can be described. These data originate from th e U.S. Bureau of Census and the U.S. Fish and Wildlife Service. The Bureau of Census data are obtained fr om the U.S. Customs office, which records data on declarations of intern ational shipments as required by law for nearly all overseas

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2 shipments and receipts. Products describe d as “Live Ornamental Fish” are given a specific harmonized tariff 10-digit code by the U.S. International Trade Commission (HTS 0301100000). This product category will exclude other live aquatic commodities that may be used for human consumption, such as live food fish. The value of these shipments is then recorded by Customs. Volume, or quantity, is not recorded by Customs. The Customs export data reported in this study include only dome stic exports, not transshipments of foreign product. Exports are valued as “fr ee alongside ship” (FAS). In addition, the actual export (and import) value may be understated given that only those shipments with a declared value in excess of $1,251 were recorded by Customs during the 1989-98 period. The degree to which the d eclared value and actual shipment values differ (if, for example, the total declared value is under reported due to exclusion of shipments valued at less than $1,251) canno t be determined. Since 1998, Customs has increased the minimum value for reporting to $2,000. Import value is defined as the Customs Import Value, which is the value appraised by Customs at the first port of a rrival (excluding impor t duties, freight, in surance, and other charges). Further, the Bureau of Census data do not provide any information on the species or product forms being shipped. In fact, the use of the term “fish” in the definition of the code is misleading in that ot her forms of live, marine ornamental species may be included, such as mollusks (i.e., snails, clams, etc.) crustaceans (i.e., shrimps, crabs, etc.), echinoderms (i.e., starfish, sand dollars, etc.) and othe r non-finfish species. The data also do not allow a distinction betw een marine and freshwater species. Thus, the data describe the total trade in all specie s of live, ornamental aquatic organisms. The U.S. Fish and Wildlife Service (USFWS) also compiles data on the international trade of live, ornamental aquatic species. These data are taken fr om Customs shipment declaration forms (Form 3-177), which are completed for each shipment that arrives or exits a given U.S. port of entry. These fo rms provide more detail than available via reported Bureau of Census data in that thre e general “species groups ” are delineated in the data: (1) non-CITES invertebrates (i.e., invertebra te species that are not listed under the Convention on International Trade in Endangered Species) (designated as NONV ), (2) other live invertebrates contained in tropical fish a nd other shipments (designated as OLIN ), and (3) all live tropical fish incl uding goldfish (designated as TROP ). The individual names of the various species in each shipment are not data based by USFWS, although they do appear on the Fo rm 3-177. Thus, the distinction between marine and freshwater species cannot be identified through th e existing data sets. A more detailed treatment of the USFWS data would have been prohibitive given that each Form 3-177 can include many pages of quantity and value data for each species shipped

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3 (Chapman et. al., 1997). Only careful scruti ny of the original Forms can provide this information, an exhaustive effort that wa s clearly outside the scope of this study. USFWS data exclude shipments where the de signation codes for import or export were not recorded, which represent between 1 and 5 percent of the total (d eclared) annual trade value. USFWS does not exclude imports a nd/or export shipments of live ornamental species based on the magnitude of the ship ment value as does Customs. A cursory examination of USFWS Law Enforcement Management Information System (LEMIS) declared export/import shipment data for live tropical fish shipments via U.S. west coast ports of entry found that 44 percent of all shipments we re valued le ss than $1,251. Exclusion of the aggregate value of these re latively small-valued shipments may have a significant impact on the total re ported values of imports and exports of live, ornamental species. The Bureau of Census value data will be described on an annual basis for the 1989-98 period, while the discussion of annual US FWS data will be confined to the 1994-98 period (only the last 5 year s are available via USFWS) The 1994 data for USFWS includes only March through December, due to USFWS archiving restri ctions (i.e., only the last 60 months are retained in the system) and the timing of our Freedom of Information Act data request. Given that information on shipment quantity is not reported for the Customs data, the trends in international trade of live, ornamental aquatics species focus on the declared values of both exports and imports. The tota l number of specimens imported across all species is reported for the USFWS data. III. Trends in U.S. Imports and Exports The discussion in this section w ill address trends in total U.S. imports and exports of live, ornamental species. The data provided by U.S. Customs and USFWS will be addressed separately. The data represent a summation of annual imports and exports over all U.S. ports of entry, including those located in Florida (the latter will be discussed separately in a later section of this report). III.A. U.S. Customs Data The value of imported live, ornamental “fish” (HTS 0301100000) was estimated to be $45.1 million in 1998 (Table 1). This value re presents a decline from a peak of $54.3 million during 1995. Annual import values had increased to the peak value during the 1989-94 period. The reported domestic export values for live, ornamental “fish” mirrored those for imports. Export values increased from $8.6 million in 1989 to a peak of $19.8 million in 1995, then decreased steadily to $10.5 million in 1998. The threeyear decline was somewhat more dramatic fo r export values (-47 percent) than that

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4 observed for imports (-17 percent) over the same period. When import values exceed export values, a negative trade balance (i.e., de ficit) exists. A tr ade deficit for live, ornamental “fish” existed for every year during the 1989-98 period. The trade deficit for live, ornamental “fish” averaged appr oximately $31 million over the 1989-98 period, although the deficit averaged a bout $35 million during the last four years. The annual ratio of import value (I) to export value (E), or I/E, has averaged 3.26 during the 1994-98 period (1.0 equals trade bala nce). Trends during 1982-92 ar e described in Thunberg et. al. (1993). Table 1. Trends in Live Ornament al “Fish” Imports and Exports (U.S. Customs data in 1,000 $) Year Import Value Export Value Trade Balance 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 38,213 40,992 36,104 41,123 45,248 46,769 54,301 53,026 49,309 45,096 8,591 11,646 12,747 15,136 17,364 18,866 19,816 15,461 14,541 10,533 (29,622) (29,346) (23,357) (25,987) (27,884) (27,903) (34,485) (37,565) (34,768) (34,563) During the 1994-98 period, the U.S. imported liv e, ornamental “fish” from 116 different countries for a combined total of $248.5 million. The largest single country sources of product included Thailand (18 pe rcent), Singapore (18 percen t), Indonesia (13 percent), Hong Kong (10 percent), and the Philippines (9 percent). Other important import Asian sources included Malaysia and Japan, with the most important western hemisphere sources being Columbia, Peru, and Brazil. With the exception of imports from Hong Kong and Japan, import values declined dur ing 1998, with most sources exhibiting a decline from a previous peak during 1995 or 1996 (although the import value from Thailand peaked during 1997). The U.S. exported live, ornamental “fish” to 68 different count ries during the 1994-98 period, for a combined total export value of approximately $80 million (Table 2). The top destinations for live, ornamental “fis h” includes Japan (33 percent), Canada (26

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5 percent), Hong Kong (9 pe rcent), Brazil (6 percent), and Me xico (6 percent). The export market for Canada has remained relatively st able during the five-year period. However, the export values for the other major trading partners have exhibite d declines. It is notable that Hong Kong is both a major importer and exporter of live ornamental fish with the U.S. Table 2. Important Import Sources and Export Destinations for Live, Ornamental “Fish” (U.S. Customs Data in 1,000 $) Direction 1994 1995 1996 1997 1998 Imports: Thailand Singapore Indonesia Hong Kong Philippines Others Total Exports: Japan Canada Hong Kong Taiwan Mexico Others Total 9,460 8,567 6,055 4,575 4,146 13,966 46,769 5,952 4,253 1,977 2,076 1,132 3,476 18,866 9,560 9,557 6,517 4,540 5,152 18,975 54,301 7,847 4,465 1,807 1,220 650 3,827 19,816 9,205 9,745 7,183 4,786 4,822 17,285 53,026 5,965 3,442 1,426 416 790 3,422 15,461 9,720 8,726 6,518 4,715 4,595 15,035 49,309 3,972 4,067 1,427 488 1,138 3,449 14,541 7,802 7,939 5,575 5,249 4,001 14,530 45,096 2,296 4,155 651 116 888 2,427 10,533 III.B. U.S. Fish and Wildlife Service Data The USFWS data provide a different perspec tive on the magnitude of value of imports and exports of live, ornamental “fish”. The three categorie s of ornamental species are NONV, OLIN, and TROP (as previously de fined). The followi ng discussion does not include the values reported for NONV, whic h is ambiguous regarding the inclusion of only live specimens. However, OLIN and TR OP include only live invertebrates and/or tropical fish. Most importantly, USFWS data (as reported on Form 3-177) do not exclude shipments with values less than $1,251, as does Customs, which can represent a significant share of the total number of shipme nts entering or leaving a given U.S. port. Although the exact reason has no t been identified, the annual import and export values

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6 reported by USFWS are at least on order of magnitude higher than those reported via Customs. Import value (OLIN and TROP combined) thr ough all U.S. ports of entry during 1998 was reported at $660.3 million (Table 3). This value had decreased from a peak of $802.3 million during 1995. The 1995 import value represented an increase of over 50 percent from 1994. Export value (OLIN and TR OP combined) exhibited a similar trend, increasing from $253.4 million in 1994 to a peak of $378.4 in 1995, then decreasing steadily to a five-year low of $182.2 million in 1998. The USFWS data indicates a more dramatic trade deficit with respect to live, ornamental species. The trade deficit, according to the USFWS data, increased from $266.1 million in 1994 to $478.1 million (80 percent) in 1998. The annual ratio of import value to expor t value averaged 2.57 during the 1994-98 period. Table 3. Trends in Value of Total Live Ornamental “Fish” Imports and Exports (U.S. Fish and Wildlife Service data in 1,000 $) Year Import Value (OLIN + TROP) Export Value (OLIN + TROP) Trade Balance 1994 1995 1996 1997 1998 519,423 802,301 801,389 695,560 660,312 253,358 378,407 312,339 277,517 182,214 (266,065) (423,894) (489,050) (418,043) (478,098) The trade in TROP as reported by USFWS is much higher than that reported for OLIN (Table 4). The average annual import (e xport) value for TROP during the 1994-98 period is over 30 (45) times higher than th at reported for OLIN. The value of OLIN imports averaged approximately $20 million during the 1994-98 period, increasing from a low of $13.1 million in 1994 to a peak of $23.4 million in 1995. Export value of OLIN increased from $3.9 million in 1994 to a peak of $9.2 million in 1996, decreasing steadily thereafter. The average annual import va lue for TROP during the 1994-98 period was $676 million. The average annual export valu e for TROP during the same period was $275 million. Both exports and imports have declined steadily since reaching peak values in 1995.

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7 Table 4. Trends in the Value of OLIN and TROP Imports and Exports (U.S. Fish and Wildlife Service data, 1,000 $) OLIN TROP Year Imports Exports Imports Exports 1994 1995 1996 1997 1998 13,062 23,391 22,599 19,482 21,253 3,934 6,299 9,194 5,727 4,523 506,361 778,910 778,790 676,078 639,059 249,424 372,108 303,145 271,790 177,691 USFWS data also provides an estimate of th e numbers of individual specimens that were either exported or imported within the br oad categories defined as OLIN and TROP (Table 5). During the 1994-98 period, trade in TROP (impor ts and exports combined) exceeded that reported for OLIN by 100-fold. For both product categories, the volume of imports exceeded that reported for exports Both OLIN and TROP have exhibited declining volumes since either 1995 or 1996 with the largest pe rcentage declines associated with TROP imports (-25 percen t since 1996) and exports (49 percent since 1995). Table 5. Trends in the Quantity of OLIN and TROP Imports and Exports (U.S. Fish and Wildlife Service data, millions of specimens) OLIN TROP Year Imports Exports Imports Exports 1994 1995 1996 1997 1998 17 38 32 28 32 2 11 4 4 3 2,100 3,160 3,276 2,853 2,460 496 625 509 421 320

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8 USFWS data indicates that the U.S. importe d or exported OLIN and/or TROP products with over 170 countries. The most important TROP trading partners were basically the same as found for the Customs data. The top OLIN trading partners were the Philippines, Indonesia, Canada, Sri Lanka, and Haiti. IV. Trade Flows Through Florida Ports Imports and exports of live, ornamental spec ies pass through two primary Florida ports: Miami and Tampa. The follo wing discussion describes the tr ade patterns for each port, for both U.S. Customs (HTS 0301100000) and U. S. Fish and Wildlif e Service (OLIN and TROPP) data. IV.A. U.S. Customs Data Of all the live, ornamental “fish” imports arriving in Florida during the 1994-98 period, 88 percent passed through Miami; a similar pe rcentage was found for Miami's share of Florida's exports (Table 6). The remaining 12 percent of both imports and exports passed through Tampa. Imports arriving into Miami declined steadily from a peak of $8.5 million in 1995 to $4.5 million in 1998. In cont rast, exports from Miami have exhibited an upward trend from $0.3 million in 1994 to $1.2 million in 1998. The combined value of imports arriving in Miami and Tampa annuall y represented an average of 15 percent of the total imports of live, ornamental “fish” arriving in all U.S. ports. Table 6. Trends in Live Ornamental “Fish” Imports and Exports Passing Through Florida Ports (U.S. Customs data in 1,000 $) Imports Exports Year Miami Tampa Florida as % of U.S. Total Miami Tampa Florida as % of U.S. Total 1994 1995 1996 1997 1998 4,519 6,245 7,255 8,462 5,923 1,191 1,560 1,057 483 324 13 16 16 16 13 942 1,365 1,795 2,505 4,071 407 334 257 249 217 13 12 13 14 23

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9 Similar trends were exhibited w ith exports. The value of live, ornamental “fish” exported through Miami declined from $4.1 million in 1994 to $0.9 million in 1998. However, the value of Tampa exports increased from $0.2 million to $0.4 million during the same period. Florida exports account ed for approximately 15 percen t of the total U.S. exports of live, ornamental “fish”. The averag e annual value of imports during the 1994-98 period was $7.4 million, compared to $2.4 milli on for exports. Thus, the 3:1 ratio of import to exports contributes to a reported av erage annual trade deficit of approximately $5.0 million. IV.B. U.S. Fish and Wildlife Service Data Of all the OLIN and TROP imports arrivi ng in Florida during the 1994-98 period, 90 percent passed through Miami (Table 7). A pproximately 86 percent of the exports passed though Miami. The remaining 10 percent and 12 percent of imports and exports, respectively, passed through Tampa. Table 7. Trends in OLIN and TROP (c ombined) Imports and Exports Passing Through Florida Ports (U.S. Fish and Wildlife Service data in 1,000 $) Imports Exports Year Miami Tampa Florida as % of U.S. Total Miami Tampa Florida as % of U.S. Total 1994 1995 1996 1997 1998 1,213 98,026 132,773 130,194 44,017 7,231 20,305 13,016 4,547 5,914 15 15 18 19 8 49,558 100,255 113,278 112,093 100,054 9,674 17,533 17,848 16,349 15,060 24 31 42 46 63 Imports arriving in Miami increased from $44 million in 1994 to a peak of $132.8 million in 1996, then declined to $71.2 million in 1998 (increasing 62 percent from 1994 to 1998). Exports from Miami have exhibite d a similar trend, increasing to $113.3 million in 1996, then decreasing to $49.6 million in 1998. Similar trends exist for the import and export data for Tampa. As also suggested by the U.S. Customs data, the combined value of imports arriving in Miami and Tampa annuall y represented an average of 15 percent of the total value of imports of live, ornament al “fish” (in this case, OLIN and TROP) arriving in all U.S. ports. Florida exports ar e much more important with respect to the total U.S. export market, with Florida exports accounting for approximately 40 percent of

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10 the total U.S. exports of OLIN and TROP sp ecimens. Interestingly, the Florida share of exports has declined signif icantly from 63 percent in 1994 to 24 percent in 1998. This change in export share is more related to ch anges in export levels elsewhere in the U.S., although Florida exports declin ed dramatically during 1998. The average annual value of imports during the 1994-98 period was $105.4 million, compared to $110.8 million for exports. Thus, the virtual 1:1 ratio of impor t to exports contributes to a negligible average annual trade deficit. V. Summary The international trade in live, ornamental aquatic species provides an important source of product for the domestic market, while also providing an important market outlet for wild-caught and cultured spec ies. The wild-caught and cultured ornamental species industry represents an important natural resource-based industry in Florida. The increasingly stringent regulat ions on wild-caught species, and the growing domestic and international markets have created an in creased reliance by do mestic purveyors on international trade. In describing the market similar trends are e xhibited by both the U.S. Customs and U.S. Fish and Wildlife Servi ce data, although the magnitude of reported imports and exports are considerably differe nt between the two data sources. U.S. Customs restricts reporting to only those shipments valued in excess of $1,251 (recently increased to $2,000), while U.S. Fish and W ildlife Service attempts to report all shipments. Customs data provides very lit tle information on indivi dual species, while USFWS data contains information on three ma jor categories. More detailed species information is collected but is not maintained in a useable database by either agency. Neither data set allows for a distinction be tween marine and fresh water species, although the information could ultimately be mined fr om the original Form 3-177s archived by USFWS. In addition, it is understood th at USFWS will begin reporting import and export data on a more detailed basis (more sp ecies codes), but this information was not available for this report. Florida represents an important domestic and international source of wild-caught and cultured live aquatic species. Miami and Tampa also represent important state and national nodes for the interna tional markets, both in terms of importing and exporting. Both Customs and USFWS data suggest that Fl orida accounts for about 15 percent of the total live, ornamental “fish” imported into the U.S. The Customs data suggest that Florida accounts for about 15 percent of the total U.S. exports as well, whereas the USFWS data indicates the Florida share is much higher, approximately 40 percent. Many other countries are involved in the intern ational trade of live, ornamental “fish”. The most important trading partners are in Asia. However, important export markets exist in Canada and Europe. The analysis described in this paper could be improved with data that delineate between marine and freshwater species. Data on an i ndividual species basis would allow trends to

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11 be described for the most important specie s imported and exported. These data are available via the USFWS archived Form 3177s, but the effort required to access and record these data will be substantial. A description of the seasonality of import availability and export demand would also help better describe the inte rnational market in which Florida purveyors participate. Furthe r, assessing the determinants of import supply and export demand, with attention given to individual species price, would help Florida growers of ornamental species better determine which new species or subspecies to introduce into the market. Providing such an analysis on a species and country basis would be invaluable. References Chapman, F.W., S. A. Fitz-C oy, E.M. Thunberg, and C.M. Adams. United States of America Trade in Ornamental Fish. Journal of the World Aquaculture Society Vol. 28. No. 1, pp. 1-10. Thunberg, E.M., J.T. Rodrick, C.M. Adams, and F.W. Chapman. (1993) Trends in United States Internationa l Trade in Ornamental Fish, 1982-1992. International Working Series Paper IW-93-19. Food a nd Resource Economics Department. University of Florida. Gainesville. 58 pp. U.S. Department of Commerce, Bureau of Census, Foreign Trade Division, General Imports and Exports. Data describing the value of imported and exported ornamental species (various years). Washington, D.C. U.S. Department of the Interi or, Fish and Wildlife Service, Office of Law Enforcement. Data uploaded by U.S. Customs from Fo rm 3-177 for quantity and value of imported and exported ornamental fish (various years). Arlington, VA. Pet Industry Joint Advisory Council (1999). U.S. Ornamental Aquarium Industry Pet Information Bureau. Washington, D.C. 2 pp.