[Federal Register Volume 60, Number 125 (Thursday, June 29, 1995)]
[Rules and Regulations]
[Pages 33677-33679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15858]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 60, No. 125 / Thursday, June 29, 1995 / Rules
and Regulations
[[Page 33677]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 906 and 944
[Docket No. FV-95-906-1FR]
Oranges Grown in the Lower Rio Grande Valley in Texas and
Imported Oranges; Suspension of Regulations for Domestic and Imported
Oranges
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule; suspension.
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SUMMARY: This rule suspends the handling regulations for oranges grown
in the Lower Rio Grande Valley in Texas and the orange import
regulations for the period July 1 through August 31 indefinitely.
Currently, the effective period for both domestic and imported oranges
is January 1 through December 31 of each year. The purpose of the
suspension is to remove unnecessary handling regulations applicable to
shipments of Texas oranges for the two month period July and August.
The suspension of regulations applicable to imported oranges is
necessary under section 8e of the amended Agricultural Marketing
Agreement Act of 1937.
EFFECTIVE DATE: July 1, 1995.
FOR FURTHER INFORMATION CONTACT:
Charles L. Rush, Marketing Specialist, Marketing Order Administration
Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room
2523-S, Washington, DC 20090-6456; telephone: 202-690-3670;
or
Belinda G. Garza, McAllen Marketing Field Office, USDA/AMS, 1313 East
Hackberry, McAllen, TX 78501; telephone: 210-682-2833.
SUPPLEMENTARY INFORMATION: This suspension is issued under Marketing
Agreement and Order No. 906 (7 CFR part 906) regulating the handling of
oranges and grapefruit grown in the Lower Rio Grande Valley in Texas,
hereinafter referred to as the ``order''. The agreement and order are
effective under the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
This suspension is also issued pursuant to section 8e of the Act,
which requires the Secretary of Agriculture to issue grade, size,
quality, or maturity requirements for certain listed commodities
imported into the United States that are the same as, or comparable to,
those imposed upon the domestic commodities under Federal marketing
orders.
The Department of Agriculture (Department) is issuing this
suspension in conformance with Executive Order 12866.
This suspension has been reviewed under Executive Order 12778,
Civil Justice Reform. This suspension is not intended to have
retroactive effect. This action would not preempt any State or local
laws, regulations, or policies, unless they present an irreconcilable
conflict with this suspension.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with the Secretary a
petition stating that the order, any provision of the order, or any
obligation imposed in connection with the order is not in accordance
with law and requesting a modification of the order or to be exempted
therefrom. A handler is afforded the opportunity for a hearing on the
petition. After the hearing, the Secretary would rule on the petition.
The Act provides that the district court of the United States in any
district in which the handler is an inhabitant, or has his or her
principal place of business, has jurisdiction in equity to review the
Secretary's ruling on the petition, provided a bill in equity is filed
not later than 20 days after the date of the entry of the ruling.
There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of import regulations
issued under section 8e of the Act.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Administrator of the Agricultural Marketing Service
(AMS) has considered the economic impact of this action on small
entities.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility. Import regulations issued under
the Act are based on domestic grade, size, quality or maturity
regulations established under Federal marketing orders.
There are approximately 15 handlers of oranges and grapefruit
regulated under the marketing order each season and approximately 750
orange and grapefruit producers in South Texas. In addition, there are
approximately 20 importers of oranges subject to the requirements of
the orange import requirements. Small agricultural service firms, which
include handlers and importers, have been defined by the Small Business
Administration (13 CFR Sec. 121.601) as those having annual receipts of
less than $5,000,000, and small agricultural producers are defined as
those whose annual receipts are less than $500,000. The majority of
these handlers, producers, and importers may be classified as small
entities.
Oranges grown in the Lower Rio Grande Valley in Texas are subject
to a minimum grade requirement of U.S. No. 2 and a minimum size
requirement of 2\6/16\ inches in diameter. These requirements are in
effect throughout the year on a continuous basis. The grade and size
requirements for oranges grown in the Lower Rio Grande Valley in Texas
are found in Sec. 906.365 (7 CFR part 906) under the order. In
addition, there are container and pack requirements found in
Sec. 906.340.
The Texas Valley Citrus Committee (Committee), the agency
responsible for local administration of the order, meets prior to and
during each season to review the handling regulations effective on a
continuous basis for oranges regulated under the order. Committee
meetings are open to the public, and interested persons may express
their views at these meetings.
[[Page 33678]]
The Department reviews Committee recommendations and information, as
well as information from other sources, and determines whether
modification, suspension, or termination of the handling regulations
would tend to effectuate the declared policy of the Act.
The Committee met on March 9, 1995, and recommended by a 14 to 1
vote to relax the effective dates of the regulatory period for oranges
from continuous to July 15 through August 31, 1995, for one year.
Committee members limited the relaxation to one year because of
concerns about imported oranges being in commercial channels after
August 31, and the need to study the impact of such a change. The
Committee acknowledged that the Texas orange requirements only need to
be in effect when there are shipments of Texas oranges.
The Committee member who voted in opposition to the recommended
change expressed concern about the potential impact imported oranges
could have on the marketing of Texas oranges if substandard imports are
in commercial channels when the Texas orange shipping season begins.
However, with this rule the quality and size regulations for both Texas
and imported oranges will be effective when the Texas shipping season
begins and all fruit handled during the Texas shipping season will be
subject to these requirements.
According to the Committee, Texas orange shipments typically begin
in mid to late September and end in mid to late June. The Texas citrus
industry has been in a vigorous recovery since the freeze of 1989.
Prior to the freeze, shipments of oranges during the 1986/87 season
totaled 1,334,548 cartons, shipments for the 1987/88 season totaled
2,240,181 cartons, and shipments for the 1988/89 season totaled
1,220,101 cartons. The 1989/90 shipping season ended in early January
1990 due to the harsh freeze. There was no commercial production or
shipments of oranges during the 1990/91 season due to the December 1989
freeze. Orange shipments were minimal during the 1991/92 season as the
recovery from the freeze of 1989 was still underway. Shipments for the
1992/93 season totaled approximately 688,000 cartons and shipments in
the 1993/94 season approximated 833,000 cartons. The Committee expects
the 1994/95 season to be an excellent year for orange production and
sales. A review of 1986/87 to 1993/94 Texas orange shipment data
revealed that the industry's shipping season consistently runs from
September through the following June. This pattern was consistent in
both pre-freeze and post-freeze seasons.
The Department reviewed the Committee's recommendation and
determined that the quality and size requirements for Texas oranges
should be suspended for the period July 1 through August 31, when there
are no Texas orange shipments. The regulatory period would begin in
September and end in June. There have been production changes over the
last five to six seasons. However, as mentioned above, the change in
production is a result of the freeze of 1989. The change in production
has not resulted in a change in the industry's shipping pattern. The
industry's shipping pattern consistently begins in September and ends
in June. Although shipping patterns have not changed to date, in the
future there may be changes in production. An annual evaluation will be
conducted to determine the impact of the suspension on the Texas orange
industry. If it is determined that the suspension has been deleterious
to the Texas orange industry, necessary modifications will be made.
Minimum grade and size requirements for fresh oranges grown in
Texas are in effect under Sec. 906.365 (7 CFR 906.365). This action
suspends the provisions of Sec. 906.365 that apply to oranges during
the months of July and August.
Since the grade and size requirements for Texas oranges will be
effective during the entire Texas shipping season, this change should
not have an adverse impact on the Texas orange industry.
Section 8e of the Act provides that when certain domestically
produced commodities, including oranges, are regulated under a Federal
marketing order, imports of that commodity must meet the same or
comparable grade, size, quality, and maturity requirements. Section 8e
further provides that whenever two or more marketing orders regulating
the same agricultural commodity produced in different areas of the
United States are concurrently in effect, the imports shall be subject
to the requirements applicable to the commodity produced in the area
with which the imported commodity is in most direct competition. The
Secretary has determined that oranges imported into the United States
are in most direct competition with oranges grown in Texas regulated
under M.O. No. 906, and has found that the minimum grade and size
requirements for imported oranges should be the same as those
established for oranges under M.O. No. 906.
Imported oranges are subject to minimum grade and size requirements
under Sec. 944.312 (7 CFR part 944.312). These requirements are in
effect on a continuous basis because domestic oranges are subject to
the minimum grade and size requirements under Marketing Order No. 906
on a continuous basis. This rule suspends section 944.312(a) for the
period July 1 through August 31 indefinitely so that it is effective
September 1 through June 30, the same time period that is effective in
the Texas orange regulation. According to the Department's Market News
Branch, U.S. fresh orange imports during the 1993/94 season (beginning
November 1) totaled 37.2 million pounds, up nearly 60 percent from the
1992/93 total. The increase is attributable to additional supplies from
Australia as compared with the prior season. Australia's largest
shipments arrive in July and August. By comparison, U.S. orange imports
averaged 48.3 million pounds per season from 1988/89 through 1992/93,
ranging from a low of nearly 19 million pounds to 137.3 million pounds
in 1990/91 when domestic supplies were reduced following freeze damage
to the California crop. In both 1992/93 and 1993/94, Australia was the
principal source of fresh orange imports. Other sources of orange
imports were the Dominican Republic, whose largest shipments arrive in
August and September, Mexico, Israel, and Jamaica. In the 1992/93
season, Australia accounted for 10.1 million pounds, or 43 percent of
U.S. fresh orange imports and 20.7 million pounds, or 56 percent of the
U.S. total in 1993/94. Mexico is an important source of orange imports
during the fall and winter. Imports from Israel are most active during
the winter, with imports from other countries widely distributed
throughout the season.
This rule relaxes import requirements because the orange import
regulations will not be in effect during the months of July and August.
This may result in reduced costs to importers. This action should not
have an adverse impact on the Texas industry, however, because its
shipping season does not begin until September. Domestic producers will
not be significantly impacted, since all oranges in commercial channels
during the domestic shipping season would be subject to the same
minimum grade and size requirements.
The purpose of these changes is to assure that applicable quality
requirements are in place only during such periods as needed by the
Texas orange industry to provide a consistent supply of oranges of
acceptable quality to fresh market outlets.
[[Page 33679]]
A proposed rule concerning this suspension was issued on April 18,
1995, and published in the Federal Register on April 24, 1995 (60 FR
60059). That rule provided a 20-day comment period which ended May 15,
1995. Six comments were received, four in support and two opposed to
the proposed rule.
Comments received in favor of suspending the regulations for
domestic and imported oranges as proposed were submitted by Mr. David
M. Cain of the Citrus Board of South Australia (Citrus Board), Mr. N.
Perry Hansen of Waverly Growers Cooperative, and Mr. Gregory P. Nelson
on behalf of DNE World Fruit Sales and Bernard Egan & Company.
Mr. Cain states that the Citrus Board speaks on behalf of almost
900 South Australian citrus growers. It is his contention that the
suspension of the regulation during the months of July and August, when
under current arrangements, South Australian oranges arrive in the
United States, will remove an unnecessary obstacle to their
importation. He points out that there are no maximum decay level
restrictions imposed on imports of U.S. oranges into Australia. Mr.
Hansen supports the suspension, as proposed.
Mr. Nelson stated that, as president of a major exporter of Florida
citrus and a major grower of Florida citrus, it is important that all
import requirements in the United States be reasonable and fair. He
further stated that he expects no adverse consequences on the domestic
industry as a result of implementation of the proposed suspension.
Comments in opposition to the suspension of the orange regulations
were submitted by Mr. Dwayne Bair, Chairman of the Texas Valley Citrus
Commitee and Mr. Bobby F. McKown, Executive Vice President/CEO of
Florida Citrus Mutual.
Mr. Bair states that the proposal is contrary to the Committee's
recommendation which was to relax the Texas orange regulations for a
single season rather than suspending them indefinitely as proposed. The
Committee recommended relaxing the effective dates of the regulatory
period for Texas oranges from July 15 through August 31, 1995, for one
year only. As explained earlier in this rule, past and present
production and shipping trends support suspending the orange
regulations during the period July 1 through August 31 indefinitely.
Also as previously stated an annual evaluation will be conducted to
determine the impact of this suspension on the Texas orange industry.
Mr. McKown believes that any reduction in the grade, size, quality,
or maturity requirements for fresh oranges, could pose long-term
adverse consumer perceptions of the quality of fresh oranges offered
for sale in the United States by Florida citrus growers. He further
postulates that the suspension of the regulations will further depress
returns to Florida citrus growers.
The Department currently has no information to support Mr. McKown's
contention that the suspension will depress returns to Florida citrus
growers. A review of the impact of the suspension will be conducted
annually. If it is determined that the domestic industry has been
negatively impacted, appropriate modifications will be proposed to the
suspension.
This suspension reflects the Department's appraisal of the need to
revise the dates of the regulatory period for imported oranges, as
hereinafter set forth, to effectuate the declared policy of the Act.
After thoroughly analyzing the comments received and other
available information the Department has concluded that its decision to
suspend the orange regulations during the above mentioned period is
appropriate.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this final rule.
Based on the above, the Administrator of the AMS has determined
that this rule will not have a significant economic impact on a
substantial number of small entities.
After consideration of all relevant matter presented, including the
information and recommendations submitted by the Committee and other
available information, it is hereby found that this suspension, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
It is further found that good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register (5 U.S.C. 553) because this suspension should be in
effect on July 1, 1995. Also, a 20-day comment period was provided for
in the proposed rule.
List of Subjects
7 CFR Part 906
Oranges, Marketing agreements, Reporting and recordkeeping
requirements.
7 CFR Part 944
Avocados, Food grades and standards, Grapes, Imports, Kiwifruit,
Limes, Olives, Oranges.
For the reasons set forth in the preamble, 7 CFR parts 906 and 944
are amended as follows:
PART 906--ORANGES GROWN IN THE LOWER RIO GRANDE VALLEY IN TEXAS
1. The authority citation for both 7 CFR parts 906 and 944
continues to read as follows:
Authority: 7 U.S.C. 601-674.
2. In Sec. 906.365, a new paragraph (a)(7) is added, to read as
follows:
Sec. 906.365 Texas Orange and Grapefruit Regulation 34.
(a) * * *
(7) Beginning in 1995, this paragraph (a) is suspended each year
from July 1 through August 31 of each year.
* * * * *
PART 944--FRUITS; IMPORT REGULATIONS
3. In Sec. 944.312, paragraph (a) is amended, by adding a sentence
at the end of the paragraph to read as follows:
Sec. 944.312 Orange import regulation.
(a) * * * Effective July 1 through August 31 of each year this
paragraph is suspended.
* * * * *
Dated: June 22, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-15858 Filed 6-26-95; 5:08 pm]
BILLING CODE 3410-02-P
