[Federal Register Volume 64, Number 210 (Monday, November 1, 1999)]
[Rules and Regulations]
[Pages 58759-58763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28372]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 64, No. 210 / Monday, November 1, 1999 /
Rules and Regulations
[[Page 58759]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 905 and 944
[Docket No. FV99-905-6 IFR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida
and Imported Grapefruit; Relaxation of the Minimum Size Requirement for
Red Seedless Grapefruit
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule relaxes the minimum size requirement for red
seedless grapefruit grown in Florida and for red seedless grapefruit
imported into the United States from size 48 (3\9/16\ inches diameter)
to size 56 (3\5/16\ inches diameter). The Citrus Administrative
Committee (Committee), the agency that locally administers the
marketing order for oranges, grapefruit, tangerines, and tangelos grown
in Florida, unanimously recommended the change for Florida grapefruit.
The change in the import regulation is required under section 8e of the
Agricultural Marketing Agreement Act of 1937. This change allows
handlers and importers to ship size 56 red seedless grapefruit through
November 12, 2000, and is expected to maximize grapefruit shipments to
fresh market channels.
DATES: Effective November 8, 1999, through November 12, 2000; comments
received by January 3, 2000 will be considered prior to issuance of a
final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk, Fruit
and Vegetable Programs, AMS, USDA, Room 2525-S, P.O. Box 96456,
Washington, DC 20090-6456; Fax: (202) 720-5698; or E-mail:
moabdocket.clerk@usda.gov. All comments should reference the docket
number and the date and page number of this issue of the Federal
Register and will be available for public inspection in the office of
the Docket Clerk during regular business hours.
FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast
Marketing Field Office, F&V, AMS, USDA, P.O. Box 2276, Winter Haven,
Florida 33883; telephone: (941) 299-4770, Fax: (941) 299-5169; or
George Kelhart, Technical Advisor, Marketing Order Administration
Branch, F&V, AMS, USDA, room 2522-S, PO Box 96456, Washington, DC
20090-6456; telephone: (202) 720-2491, Fax: (202) 720-5698.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, PO Box
96456, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202)
720-5698, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR
part 905), regulating the handling of oranges, grapefruit, tangerines,
and tangelos grown in Florida, hereinafter referred to as the
``order.'' The marketing 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 rule is also issued under section 8e of the Act, which
provides that whenever specified commodities, including grapefruit, are
regulated under a Federal marketing order, imports of these commodities
into the United States are prohibited unless they meet the same or
comparable grade, size, quality, or maturity requirements as those in
effect for the domestically produced commodities.
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 rule 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.
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 request 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 to review the Secretary's
ruling on the petition, provided an action 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.
The order for Florida citrus provides for the establishment of
minimum grade and size requirements with the concurrence of the
Secretary. The minimum grade and size requirements are designed to
provide fresh markets with fruit of acceptable quality and size,
thereby maintaining consumer confidence for fresh Florida citrus. This
contributes to stable marketing conditions in the interest of growers,
handlers, and consumers, and helps increase returns to Florida citrus
growers. The current minimum grade requirement for red seedless
grapefruit is U.S. No. 1. The current minimum size requirement for
domestic shipments is size 56 (at least 3\5/16\ inches in diameter)
through November 7, 1999, and size 48 (3\9/16\ inches in diameter)
thereafter. The current minimum size for export shipments is size 56
throughout the year.
This interim final rule invites comments on a change to the order's
rules and regulations relaxing the minimum size requirement for
domestic shipments of red seedless grapefruit. This action allows for
the continued shipment of size 56 red seedless grapefruit. This rule
relaxes the
[[Page 58760]]
minimum size from size 48 (3\9/16\ inches in diameter) to size 56 (3\5/
16\ inches in diameter) through November 12, 2000. Absent this change,
the minimum size would revert to size 48 (3\9/16\ inches in diameter)
on November 8, 1999. The Committee met on August 31, 1999, and
unanimously recommended this action.
Section 905.52 of the order, in part, authorizes the Committee to
recommend minimum grade and size regulations to the Secretary. Section
905.306 (7 CFR 905.306) specifies minimum grade and size requirements
for different varieties of fresh Florida grapefruit. Such requirements
for domestic shipments are specified in Sec. 905.306 in Table I of
paragraph (a), and for export shipments in Table II of paragraph (b).
This rule adjusts Table I to establish a minimum size of 56 through
November 12, 2000. Minimum grade and size requirements for grapefruit
imported into the United States are currently in effect under
Sec. 944.106 (7 CFR 944.106). This rule also adjusts Sec. 944.106 to
establish a minimum size of 56 through November 12, 2000. Export
requirements for Florida red seedless grapefruit are not changed by
this rule.
In making its recommendation, the Committee considered estimated
supply and demand. While the official crop estimate will not be
available until October, the supply of red seedless grapefruit is
expected to be below last year's production of 28.7 million 1\3/5\
bushel boxes. Acreage has declined in recent years from 81,348 acres in
1996, to 76,025 acres in 1998, to 71,731 acres in 1999. Losses are due
to groves being abandoned due to economic reasons, unhealthy groves
being removed and replanted, and sick and diseased trees being removed
from healthy, productive groves and not being replanted.
The Committee anticipates that fresh shipments of red seedless
grapefruit will be at or below last season's level of 14.6 million \4/
5\ bushel cartons. The quality of this year's crop is anticipated to be
normal to above normal. However, the fruit is expected to be misshapen
more than normal. All growing districts appear to be affected by poorly
shaped fruit, which could reduce the packout percentages for the 1999-
2000 crop. The individual fruit size for the upcoming crop is projected
to be a little smaller than normal, but not as small as last season.
The Committee reports that it expects fresh market demand to be
sufficient to permit the shipment of size 56 red seedless grapefruit
grown in Florida during the entire 1999-2000 season.
This size relaxation will enable Florida grapefruit shippers to
continue shipping size 56 red seedless grapefruit to the domestic
market. This rule will have a beneficial impact on producers and
handlers, because it will permit Florida grapefruit handlers to make
available the sizes of fruit needed to meet consumer needs. Matching
the sizes with consumer needs is consistent with current and
anticipated demand for the 1999-2000 season, and will maximize
shipments to fresh market channels.
The Committee believes that domestic markets have been developed
for size 56 fruit and that the industry should continue to supply those
markets. This minimum size change pertains to the domestic market, and
does not change the minimum size for export shipments which will
continue at size 56 throughout the season. The largest market for size
56 small red seedless grapefruit is for export.
Committee members stated that during the first 11 weeks of the
season (September 20 through December 5), there will likely be a volume
regulation in effect to limit the volume of small red seedless
grapefruit that can enter the fresh market. The Department has since
issued such a rule, which was published on September 17, 1999 (64 FR
50419). The Committee believes that the percentage size regulation has
been helpful in reducing the negative effects of size 56 on the
domestic market, and that no additional restrictions are needed for the
upcoming season.
In addition, the currency and economic problems currently facing
the Pacific Rim countries remain a concern. These countries
traditionally have been good markets for size 56 grapefruit. Current
conditions there could reduce demand for grapefruit, and alternative
outlets need to be available. It will be advantageous to have the
ability to ship size 56 red seedless grapefruit to the domestic market
should problems materialize in the export market.
Based on available information, the Committee unanimously
recommended that the minimum size for shipping red seedless grapefruit
to the domestic market should be size 56 through November 12, 2000.
This rule will have a beneficial impact on producers and handlers since
it will permit Florida grapefruit handlers to make available those
sizes of fruit needed to meet anticipated market demand for the 1999-
2000 season. Additionally, importers will be favorably affected by this
change since the relaxation of the minimum size regulation will also
apply to imported grapefruit.
Section 8e of the Act provides that when certain domestically
produced commodities, including grapefruit, are regulated under a
Federal marketing order, imports of that commodity must meet the same
or comparable grade, size, quality, and maturity requirements. Since
this rule relaxes the minimum size requirement under the domestic
handling regulations, a corresponding change to the import regulations
is necessary.
Minimum grade and size requirements for grapefruit imported into
the United States are currently in effect under Sec. 944.106. This rule
relaxes the minimum size requirement for imported red seedless
grapefruit to 3\5/16\ inches in diameter (size 56) until November 12,
2000, to reflect the relaxation being made under the order for red
seedless grapefruit grown in Florida.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this initial regulatory flexibility analysis.
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 the 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 those established under Federal marketing orders.
There are approximately 80 grapefruit handlers subject to
regulation under the order, approximately 11,000 growers of citrus in
the regulated area, and about 25 grapefruit importers. Small
agricultural service firms, which include handlers and importers, have
been defined by the Small Business Administration (SBA) 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 (13 CFR 121.601).
Based on the industry and Committee data for the 1998-99 season,
the average annual f.o.b. price for fresh Florida red seedless
grapefruit during the 1998-99 season was around $7.60 per \4/5\ bushel
carton, and total fresh shipments for the 1998-99 season are estimated
at 14.6 million cartons of red seedless grapefruit. Approximately 20
percent of all handlers handled 60 percent of Florida grapefruit
shipments. In addition, many of these handlers ship other citrus fruit
and products which are not included in Committee data but would
contribute further to handler
[[Page 58761]]
receipts. Using the average f.o.b. price, about 80 percent of the
Florida grapefruit handlers could be considered small businesses under
the SBA definition and about 20 percent of the handlers could be
considered large businesses. The majority of grapefruit handlers,
growers, and importers may be classified as small entities.
Handlers in Florida shipped approximately 37,395,000 \4/5\ bushel
cartons of grapefruit to the fresh market during the 1998-99 season. Of
these cartons, about 22,123,000 were exported. In the past three
seasons, domestic shipments of Florida grapefruit averaged about
16,720,000 cartons. During the period 1994 through 1998, imports have
averaged about 600,000 cartons a season. Imports account for less than
five percent of domestic shipments.
Section 905.52 of the order, in part, authorizes the Committee to
recommend minimum grade and size regulations to the Secretary. Section
905.306 specifies minimum grade and size requirements for different
varieties of fresh Florida grapefruit. This rule relaxes the minimum
size requirement for domestic shipments of red seedless grapefruit from
size 48 (3\9/16\ inches in diameter) to size 56 (3\5/16\ inches in
diameter) through November 12, 2000. No change is being made in the
minimum size 56 requirement for export shipments. Absent this rule, the
minimum size requirement for domestic shipments would have reverted to
size 48 on November 8, 1999. The motion to allow shipments of size 56
red seedless grapefruit through November 12, 2000, was passed by the
Committee unanimously. In addition, there is a volume regulation in
effect for the first 11 weeks of the 1999-2000 season (September 22
through December 5) that limits the volume of small red seedless
grapefruit that can enter the fresh market (64 FR 50419, September 17,
1999).
This rule will have a positive impact on affected entities. This
action allows for the continued shipment of size 56 red seedless
grapefruit. This change is not expected to increase costs associated
with the order requirements, or the grapefruit import regulation.
This rule relaxes the minimum size from size 48 (3\9/16\ inches in
diameter) to size 56 (3\5/16\ inches in diameter) through November 12,
2000. This change will allow handlers to continue to ship size 56 red
seedless grapefruit to the domestic market. This rule will have a
beneficial impact on producers and handlers, since it will permit
Florida grapefruit handlers to make available those sizes of fruit
needed to meet consumer needs. Matching the sizes that can be shipped
with consumer needs is consistent with current and anticipated demand
for the 1999-2000 season, and will provide for the maximization of
shipments to fresh market channels.
The currency and economic problems currently facing the Pacific Rim
countries remain a concern. These countries traditionally have been
good markets for size 56 grapefruit. Current conditions there could
reduce demand for grapefruit, and alternative outlets need to be
available. It will be advantageous to handlers to have the ability to
ship size 56 red seedless grapefruit to the domestic market should
problems materialize in the export market.
This change will allow for the continued shipment of size 56 red
seedless grapefruit. The opportunities and benefits of this rule are
expected to be equally available to all grapefruit handlers, growers,
and importers regardless of their size of operation.
During the period October 1, 1998, through June 30, 1999, imports
of grapefruit totaled 15,500 metric tons (approximately 800,000
cartons). Recent yearly data indicate that imports during July, August,
and September are typically negligible. Therefore, the 1998-99 season
imports should not vary significantly from 15,500 metric tons. The
Bahamas were the principal source, accounting for 95 percent of the
total. Remaining imports were supplied by the Dominican Republic and
Israel. Most imported grapefruit enters the United States from October
through May.
Section 8e of the Act provides that when certain domestically
produced commodities, including grapefruit, are regulated under a
Federal marketing order, imports of that commodity must meet the same
or comparable grade, size, quality and maturity requirements. Because
this rule changes the minimum size for domestic red seedless grapefruit
shipments, this change must also be applicable to imported grapefruit.
This rule relaxes the minimum size for imported grapefruit to size 56.
This regulation will benefit importers to the same extent that it
benefits Florida grapefruit producers and handlers because it allows
shipments of size 56 red seedless grapefruit into U.S. markets through
November 12, 2000.
The Committee considered one alternative to this action. The
Committee discussed relaxing the minimum size to size 56 on a permanent
basis rather than just for a year. Members said that each season is
different, and they prefer to consider this issue on a yearly basis.
Therefore, this alternative was rejected.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large red seedless grapefruit handlers
or importers. As with all Federal marketing order programs, reports and
forms are periodically reviewed to reduce information collection
requirements and duplication by industry and public sectors.
In addition, the Department has not identified any relevant Federal
rules that duplicate, overlap or conflict with this rule. However, red
seedless grapefruit must meet the requirements as specified in the U.S.
Standards for Grades of Florida Grapefruit (7 CFR 51.750 through
51.784) issued under the Agricultural Marketing Act of 1946 (7 U.S.C.
1621 through 1627).
Further, the Committee's meeting was widely publicized throughout
the citrus industry and all interested persons were invited to attend
the meeting and participate in Committee deliberations. Like all
Committee meetings, the August 31, 1999, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue. Finally, interested persons are invited to submit
information on the regulatory and informational impacts of this action
on small businesses.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at the
following website: http://www.ams.usda.gov/fv/moab.html. Any questions
about the compliance guide should be sent to Jay Guerber at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section of this document.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this interim final
rule.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
this interim final rule, as hereinafter set forth, will tend to
effectuate the declared policy of the Act.
This rule invites comments on a change to the size requirement
currently prescribed under the marketing order for Florida citrus and
the grapefruit import regulation. Any comments received will be
considered prior to finalization of this rule.
Pursuant to 5 U.S.C. 553, it is also found and determined, upon
good cause, that it is impracticable, unnecessary and contrary to the
public interest to give preliminary notice prior to putting this rule
into effect, and that
[[Page 58762]]
good cause exists for not postponing the effective date of this action
until 30 days after publication in the Federal Register because: (1)
This rule relaxes the minimum size requirement for red seedless
grapefruit grown in Florida and red seedless grapefruit imported into
the United States; (2) this action is similar to actions taken in past
seasons and grapefruit handlers and importers need no additional time
to comply with the relaxed size requirement; (3) Florida grapefruit
handlers are aware of this action which was unanimously recommended by
the Committee; (4) shipments of the 1999-2000 season Florida red
seedless grapefruit crop are underway; and (5) this rule provides a 60-
day comment period, and any comments received will be considered prior
to any finalization of this interim final rule.
List of Subjects
7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements, Tangelos, Tangerines.
7 CFR Part 944
Avocados, Food grades and standards, Grapefruit, Grapes, Imports,
Kiwifruit, Limes, Olives, Oranges.
For the reasons set forth above, 7 CFR Parts 905 and 944 are
amended as follows:
1. The authority citation for 7 CFR Parts 905 and 944 continues to
read as follows:
Authority: 7 U.S.C. 601-674.
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
2. In Sec. 905.306, Table I in paragraph (a) is amended by revising
the entry for ``Seedless, red'' to read as follows:
Sec. 905.306 Orange, Grapefruit, Tangerine, and Tangelo Regulation.
(a) * * *
Table I
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Minimum
Variety Regulation period Minimum grade diameter
(inches)
(1) (2)........................ (3)........................ (4)
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* * * * * *
*
GRAPEFRUIT
* * * * * *
*
Seedless, red............................ 11/8/99-11/12/00 On and U.S. No. 1................. 3\5/16\
after 11/13/00. U.S. No. 1................. 3\9/16\
* * * * * *
*
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* * * * *
PART 944--FRUITS; IMPORT REGULATIONS
4. In Sec. 944.106(a), the table is amended by revising the entry
for ``Seedless, red'' to read as follows:
Sec. 944.106 Grapefruit import regulation.
(a) * * *
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Minimum
Grapefruit classification Regulation period Minimum grade diameter
(inches)
(1) (2)........................ (3)........................ (4)
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* * * * * *
*
Seedless, red............................ 11/8/99-11/12/00 On and U.S. No. 1................. 3\5/16\
after 11/13/00. U.S. No. 1................. 3\9/16\
* * * * * *
*
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[[Page 58763]]
* * * * * * *
Dated: October 25, 1999.
Eric M. Forman,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-28372 Filed 10-29-99; 8:45 am]
BILLING CODE 3410-02-P
