[Federal Register Volume 63, Number 203 (Wednesday, October 21, 1998)]
[Proposed Rules]
[Pages 56096-56098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28238]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 63, No. 203 / Wednesday, October 21, 1998 /
Proposed Rules
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 51
[Docket Number FV-98-302]
Table Grapes (European or Vinifera Type); Grade Standards
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would revise the United States Standards
for Grades of Table Grapes (European or Vinifera Type). These standards
are issued under the Agricultural Marketing Act of 1946. The proposal
would change the specific varietal reference throughout the standard
from the present ``Superior Seedless'' to ``Sugraone.'' This revision
will result in a benefit to the table grape industry by providing a
uniform, apropos reference ensuring proper application of the grade
standards.
DATES: Comments must be received by December 21, 1998.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments must be sent to the Standardization
Section, Fresh Products Branch, Fruit and Vegetable Programs,
Agricultural Marketing Service, U.S. Department of Agriculture, P.O.
Box 96456, Room 2065 South Building, Washington, DC 20090-6456; Fax
(202) 720-8871; E-mail Francis--J.OSullivan@usda.gov. Comments should
make reference to the date and page number of this issue of the Federal
Register and will be made available for public inspection in the above
office during regular business hours.
FOR FURTHER INFORMATION CONTACT: Frank O'Sullivan, at the above address
or call (202) 720-2185.
SUPPLEMENTARY INFORMATION: The Department of Agriculture (Department)
is issuing this rule in conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This action is not intended to have retroactive effect.
This rule will not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule. There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of the rule.
AMS provides inspection and grading services and issues grade and
quality standards for commodities such as grapes. The agency does not
determine varietal names for such commodities. However, in 1995 the
Agricultural Marketing Service (AMS) received a request from Sun World
International, Inc. (Sunworld) to replace the varietal reference
``Superior Seedless'' with ``Sugraone'' in the table grape standards in
7 CFR Part 51.880--51.914. Sunworld, a grower/shipper with proprietary
rights to the term ``Superior,'' advised AMS that ``Superior Seedless''
was a registered trademark name and not the varietal name for this
table grape variety. ``Sugraone,'' according to Sunworld, was the
correct varietal name. On March 15, 1995, therefore, when AMS issued a
proposed rule (Federal Register, Vol. 60, No. 50, pp. 13889--14200) to
change the bunch size requirements for the U.S. No. 1 Institutional
grade, the agency also proposed to change the varietal name
designation, assuming that this revision was purely a technical step to
keep the standard consistent with current industry terminology.
In proposing to change the wording to reflect ``Sugraone'' as a
varietal name AMS intended to correct what the agency understood to be
an out-of-date reference in the grade standards. However, after
reviewing the comments pertaining to the proposed change and conducting
further research on this question, AMS found that the varietal name
issue was a complicated one involving a number of interests.
Ten comments were received as a result of the March 19, 1996,
proposal pertaining to this specific issue from growers, shippers, and/
or receivers. Five comments were in favor of the proposed change, five
were against the change. The comments in favor of the change stated
that it would promote consistency in regard to international trade of
the table grape. The comments in opposition were generally of the view
that the change would create confusion in regard to international
trade. Based on the comments, AMS withdrew the proposal to change the
name ``Superior Seedless'' to ``Sugraone'' when the final rule was
published (Federal Register, Vol. 61, No. 54, pp. 11125-11127) on March
19, 1996.
Sunworld believes that because of the current widespread use of
``Sugraone'' as the varietal name by the table grape industry, trade
associations, and various government agencies, AMS should reconsider
this decision. In support of its view, Sunworld argues: (1) As a result
of a decision by the California Department of Food and Agriculture
(CDFA)(No. L-9607066; August 9, 1996), the California table grape
industry, which grows and ships the entire U.S. production of this
variety, now uses the varietal reference ``Sugraone;'' (2) The proposal
would eliminate any confusion in the use of the appropriate varietal
name worldwide; (3) The proposed change furthers the objectives of the
Uruguay Round Agreement by harmonizing the identity of the grape; and
(4) By adopting the name ``Sugraone'' the U.S. would be consistent with
terms used by most relevant international organizations. Additionally,
Sunworld notes that as a result of the California State Administrative
Hearing and resultant change to the California regulations, both buyers
and sellers of table grapes now recognize ``Sugraone'' as the
designated varietal name. For example, the Produce Marketing
Association Electronic Identification Board has issued a Price Look-Up
(PLU) number for the ``Sugraone'' variety of table grape.
AMS therefore proposes that sections 51.882, 51.884, and 51.885 of
the U.S. Standards for Grades of Table Grapes (European or Vinifera
Type) be amended to change the varietal name to ``Sugraone.''
The actual grade requirements for this variety will remain
unchanged. Accordingly, the proposed revision will have no substantive
effect in the application of grade standards to regulated domestic and
imported grapes under the Agricultural Marketing Agreement Act of 1937
(7 U.S.C. 601-674), specifically those at 7 CFR part 925, and 7 CFR
part 944, or grapes regulated under the Export Grape and
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Plum Act (7 U.S.C. 591-599). In addition, as the maturity requirements
in the U.S. grade standards have been established by incorporating the
applicable portions of the California Code of Regulations (Title 3,
Subchapter 4, Fresh Fruits, Nuts and Vegetables, Article 25 Table
Grapes and Raisins, February 28, 1992) and since California has revised
these state regulations by replacing ``Superior Seedless'' with
``Sugraone,'' Section 51.888 (a)(2) of the U.S. standard will also be
revised to incorporate by reference the new California regulations (The
California Code of Regulations, Title 3, Subchapter 4, Fresh Fruits,
Nuts, and Vegetables, Article 25 Table Grapes and Raisins, November 16,
1996).
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), AMS has considered the economic impact of this
action on small entities and AMS has prepared this initial regulatory
flexibility analysis. Interested parties are invited to submit
information on the regulatory and informational impacts of this action
on small businesses.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened.
This rule will revise the U.S. Standards for Grades of Table Grapes
(European or Vinifera Type) that were issued under the Agricultural
Marketing Act of 1946. Although, the regulations under Marketing Order
No. 925 (7 CFR Part 925), as issued under the Agricultural Marketing
Agreement Act of 1937, reference the U.S. standards for Grades of Table
Grapes (European or Vinifera Type), the revision being proposed in this
action changes only the varietal name appearing in the standards and
has no substantive effect on the standards themselves or the marketing
order. Specifically the grade, size, and maturity requirements of this
marketing order are those listed in the U.S. standards, 7 CFR 51.884,
this rulemaking leaves them unchanged. Similarly, as Section 8e of the
Agricultural Marketing Agreement Act of 1937 requires, whenever the
Secretary of Agriculture issues grade, size, quality or maturity
regulations under domestic marketing orders for certain specified
commodities, the same or comparable regulations on imports of those
commodities be issued, this proposed revision would apply to but have
no practical effect upon imported grapes.
The U.S. Standards for Grade of Table Grapes (European or Vinifera
Type) are also referenced in Export Grape and Plum Act and the
regulations issued thereunder (7 CFR Part 35). The Export Grape and
Plum Act was created to promote the foreign trade of the U.S. in grapes
and plums, to protect the reputation of American-grown grapes and plums
in foreign markets, to prevent deception of misrepresentation as to the
quality of such products moving in foreign commerce, and to provide for
the commercial inspection of such products entering such commerce and
for other purposes. The regulations issued under the act require that
any such variety for export to destinations in various countries
throughout the world must meet the minimum requirement of either the
U.S. Fancy Table or U.S. No. 1 Table grape grade. As, the proposed
revision leaves those requirements unchanged, this rulemaking will have
no effect on the application of the regulations for table grapes for
export.
According to 1997 USDA National Agricultural Statistics Service
reports, there are approximately 800 fresh market table grape growers/
shippers in the United States which produced 939,665 short tons of
table grapes (all varieties). Of these 800 growers/handlers,
approximately 650 are from California and produce approximately 80
percent (750,000 short tons) of the crop. Approximately 10 growers from
Arizona produced 2 percent (23,000 short tons) of the 1997 fresh market
table grape crop. The bulk of the remaining 18 percent of production
was produced by the remaining three of the top five States of table
grape production: Georgia, Arkansas, and New York. In 1997, California
produced approximately 26,572 short tons of the ``Sugraone'' variety,
representing approximately 3 percent of the total U.S. table grape
production and 100 percent of the U.S. production of this variety.
Small agricultural service firms, which includes handlers, have
been defined by the Small Business Administration (SBA) (13 CFR
121.601) as those having annual receipts of less than $5,000,000, and
small agricultural producers are defined as those having annual
receipts of less than $500,000. The table grape industry is
characterized by growers and handlers whose farming operations
generally involve more than one type (such as fresh market utilization
versus processed market utilization) and variety of table grape, and
whose income from farming operations is not exclusively dependent on
one table grape variety or even one commodity. Typical table grape
growers and shippers produce multiple varieties of fresh market table
grapes and juice grapes within a single year. Therefore, it is
difficult to obtain an exact number of table grape growers and, more
specifically, sugraone table grape growers and shippers, that can be
classified as small entities based on the SBA's definition. However,
the majority of the producers do have annual receipts greater than
$500,000. Additionally, there are approximately 127 importers that
receive an average of $2.8 million in grape revenue. (Table grapes
received by these importers are subject to the requirements of Section
8e of the Agricultural Marketing Agreement Act of 1937 referenced
above.) Therefore, it is estimated that the majority of table grape
growers do not fit the SBA's definition of a small entity while the
majority of handlers/importers are small entities.
This rule changes the reference of ``Superior Seedless'' to
``Sugraone'' for the purpose of applying the appropriate grade standard
requirements. The actual requirements for this variety will remain
unchanged. Further, USDA does not determine or issue varietal names for
table grapes. The changes being proposed are merely technical; the
references are necessary to provide inspection personnel and other
parties using the grade standards with clear, concise, up-to-date
information. Specifically, in Sec. 51.882 U.S. Fancy, paragraph
(i)(1)(ii), ``Superior Seedless'' will be changed to ``Sugraone.''
Accordingly, in Sec. 51.884 U.S. No. 1 Table, paragraph (i)(1)(i),
which specifies berry size for the U.S. No. 1 Table grade, ``Superior
Seedless'' will also be changed to ``Sugraone.'' A similar change will
be made to Sec. 51.885 U.S. No. 1 Institutional, paragraph (h)(1)(i),
which also references berry size for that particular grade.
Finally, as the maturity requirements specified in the standards
incorporate applicable portions of The California Code of Regulations,
and the State has revised these regulations by replacing ``Superior
Seedless'' with ``Sugraone,'' Section 51.888 (a)(2) of the U.S. grade
standards will be revised to incorporate the new state regulations by
reference to The California Code of Regulations, Title 3, Subchapter 4,
Fresh Fruits, Nuts, and Vegetables, Article 25 Table Grapes and
Raisins, November 16, 1996.
The benefits of this rule are not expected to be disproportionately
greater or smaller for small handlers or producers than for larger
entities.
Alternatives were considered for this action. One alternative would
be to not issue a proposed rule. However, as the popularity of this
variety increases, and as imports of this variety also increase,
[[Page 56098]]
the exposure and frequency of this varietal designation will also
increase. Since the purpose of these standards is to expedite the
marketing of agricultural commodities, not changing this reference
could result in confusion in terms of the proper application of the
U.S. grade standards.
This proposed action will make the standards more consistent and
uniform with marketing trends and commodity characteristics. This
proposed action will not impose any additional reporting or
recordkeeping requirements on either small or large grape producers,
handlers, or importers. In addition, other than discussed above, the
Department has not identified any Federal rules that duplicate,
overlap, or conflict with this rule. Accordingly, AMS proposes to amend
the United States Standards for Grades of Table Grapes (European or
Vinifera Type) as follows.
List of Subjects in 7 CFR Part 51
Agricultural commodities, Food grades and standards, Fruits, Nuts,
Reporting and recordkeeping requirements, Trees, Vegetables.
For reasons set forth in the preamble, 7 CFR Part 51 is proposed to
be amended as follows:
PART 51--[AMENDED]
1. The authority citation for part 51 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
Sec. 51.882 [Amended]
2. In part 51, Sec. 51.882 (i)(1)(ii) is amended by removing the
words ``Superior Seedless'' and adding in their place the word
``Sugraone.''
Sec. 51.884 [Amended]
3. Section 51.884 (i)(1)(i) is amended by removing the words
``Superior Seedless'' and adding in their place ``Sugraone.''
Sec. 51.885 [Amended]
4. Section 51.885 (h)(1)(i) is amended by removing the words
``Superior Seedless'' and adding in their place ``Sugraone.''
Sec. 51.888 [Amended]
5. In Sec. 51.888, paragraph (a)(2), the words ``February 28,
1992'' are revised to read ``November 16, 1996.''
Dated: October 15, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-28238 Filed 10-20-98; 8:45 am]
BILLING CODE 3410-02-P
