[Federal Register Volume 61, Number 234 (Wednesday, December 4, 1996)]
[Rules and Regulations]
[Pages 64251-64253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30861]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 61, No. 234 / Wednesday, December 4, 1996 /
Rules and Regulations
[[Page 64251]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 905 and 944
[Docket No. FV96-905-4 IFR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
and Import Regulations (Grapefruit); Relaxation of the Minimum Size
Requirement for Red Grapefruit
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule makes a change in regulations under
the Florida citrus marketing order and grapefruit import regulations.
This rule relaxes the minimum size requirement for red seedless
grapefruit from 3\9/16\ inches in diameter (size 48) to 3\5/16\ inches
in diameter (size 56). The Citrus Administrative Committee (Committee),
the agency that locally administers the marketing order for oranges,
grapefruit, tangerines, and tangelos grown in Florida, unanimously
recommended this change. This change will enable handlers and importers
to continue to ship size 56 red seedless grapefruit for the entire
1996-97 season.
DATES: Effective on November 11, 1996; comments received by January 3,
1997 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 in triplicate to the Docket
Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S, P.O. Box
96456, Washington, D.C. 20090-6456, Fax # (202) 720-5698. All comments
should reference the docket number and the date and page number of this
issue of the Federal Register and will be made available for public
inspection in the Office of the Docket Clerk during regular business
hours.
FOR FURTHER INFORMATION CONTACT: Caroline C. Thorpe, Marketing
Specialist, Marketing Order Administration Branch, F&V, AMS, USDA, room
2525-S, P.O. Box 96456, Washington, D.C. 20090-6456; telephone: (202)
720-8139, Fax # (202) 720-5698; or William G. Pimental, Marketing
Specialist, Southeast Marketing Field Office, Fruit and Vegetable
Division, AMS, USDA, P.O. Box 2276, Winter Haven, Florida 33883-2276;
telephone: (941) 299-4770, Fax # (941) 299-5169. Small businesses may
request information on compliance with this regulation by contacting:
Jay Guerber, Marketing Order Administration Branch, Fruit and Vegetable
Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456; telephone (202) 720-2491; Fax # (202) 720-5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 84 and Marketing Order No. 905 (7 CFR Part 905), as
amended, regulating the handling of oranges, grapefruit, tangerines,
and tangelos grown in Florida, hereinafter referred to as the order.
The order is 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 certain 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.
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.
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 those established under Federal marketing orders.
There are approximately 100 handlers of Florida citrus who are
subject to regulation under the marketing order and approximately
11,000 producers of citrus in the regulated area, and about 25
grapefruit importers. Small agricultural service firms are defined by
the Small Business Administration (13 CFR 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 handlers, producers, and importers of Florida
citrus may be classified as small entities.
[[Page 64252]]
This rule relaxes the minimum size for the period November 11,
1996, through November 9, 1997. This rule is expected to have a
positive impact on handlers and importers, as it will permit the
shipment of smaller size grapefruit, allowing the industry to meet
market needs. The relaxed minimum size requirement would be applied to
both small and large handlers and importers in the same way. This size
relaxation will enable Florida grapefruit shippers and importers of
grapefruit to continue shipping size 56 red seedless grapefruit to the
domestic market. This is consistent with current and anticipated demand
in those markets for the 1996-97 season, which will provide for the
maximization of shipments to fresh market channels and increase grower
returns. Therefore, the AMS has determined that this action will not
have a significant economic impact on a substantial number of small
entities. Interested persons are invited to submit information on the
regulatory and informational impacts of this action on small
businesses.
The order for Florida citrus provides for the establishment of
minimum grade and size requirements. The minimum grade and size
requirements are designed to provide fresh markets with fruit of
acceptable quality, thereby maintaining consumer confidence for fresh
Florida citrus. This helps create buyer confidence and contributes to
stable marketing conditions. This is in the interest of producers,
packers, and consumers, and is designed to increase returns to Florida
citrus growers.
This interim final rule invites comments on a change to the order's
rules and regulations to relax the minimum size requirement for red
seedless grapefruit allowing for the continued shipment of size 56
grapefruit. The Committee met October 8, 1996, and unanimously
recommended this action.
This rule relaxes the red seedless grapefruit minimum size
requirement from size 48 (3\9/16\ inches diameter) to size 56 (3\5/16\
inches diameter) for the period November 11, 1996, through November 9,
1997. Absent this change, the size will revert back to size 48 (3\9/16\
inches diameter), on November 11, 1996.
Section 905.52, 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 Section 905.306 in Table I of
paragraph (a), and for export shipments in Table II of paragraph (b).
Minimum grade and size requirements for grapefruit imported into the
United States are currently in effect under Section 944.106 (7 CFR
944.106), as reinstated on July 26, 1993 (58 FR 39428, July 23, 1993).
Export requirements are not changed by this rule.
In making its recommendation, the Committee considered estimated
supply and current shipments. According to both the National
Agricultural Statistics Service and the Committee, production of red
seedless grapefruit is expected to increase in comparison to last year
(1995-96). Both sources estimate an increase in production for this
season (1996-97) of about 10 percent to 31.5 million boxes and about 3
percent to 29 million boxes, respectively. The Committee reports that
it expects that fresh market demand will be sufficient to permit the
shipment of size 56 red seedless grapefruit grown in Florida during the
entire 1996-97 season. The Committee believes that markets have been
developed for size 56 and that they should continue to supply those
markets.
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, since it will permit Florida grapefruit handlers to make
available those sizes of fruit needed to meet consumer needs. This is
consistent with current and anticipated demand in those markets for the
1996-97 season, and will provide for the maximization of shipments to
fresh market channels.
There are some exemptions to these regulations provided under the
order. Handlers may ship up to 15 standard packed cartons (12 bushels)
of fruit per day. Handlers may also ship unlimited gift packages of up
to 2 standard packed cartons of fruit per day, which are individually
addressed and not for resale. Fruit shipped for animal feed is also
exempt under specific conditions. Fruit shipped to commercial
processors for conversion into canned or frozen products or into a
beverage base are not subject to the handling requirements.
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 will relax the minimum size requirement under the domestic
handling regulations, a corresponding change to the import regulations
must also be considered.
Minimum grade and size requirements for grapefruit imported into
the United States are currently in effect under Section 944.106 (7 CFR
944.106), as reinstated on July 26, 1993 (58 FR 39428, July 23, 1993).
This rule relaxes the minimum size requirements for imported red
seedless grapefruit to 3\5/16\ inches in diameter (size 56) for the
period November 11, 1996, through November 9, 1997, to reflect the
relaxation being made under the order for grapefruit grown in Florida.
The minimum grade and size requirements for Florida grapefruit are
specified in Section 905.306 (7 CFR 905.306) under Marketing Order No.
905.
During the last 5 years (1991-1995) imports to the United States of
fresh grapefruit averaged less than 2 percent of total domestic
consumption or less than 15,000 tons per year. Based on Departmental
data, domestic consumption averaged 766,000 tons per year for that
period. The major exporter of grapefruit to the United States was the
Bahamas. The Bahamas shipped an average of 95 percent of all grapefruit
imports to the United States during that time period. Other exporters
of grapefruit to the United States included; Mexico, Jamaica, Dominican
Republic, Netherlands, Israel, and Thailand.
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 available information, it is
found that this interim final rule, as hereinafter set forth, will tend
to effectuate the declared policy of the Act.
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 good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register because: (1) This rule relaxes the minimum size
requirements that would otherwise be in effect November 11, 1996, for
grapefruit grown in Florida; (2) Florida grapefruit handlers are aware
of this action which was unanimously recommended by the Committee at a
public meeting, and they will need no additional time to comply with
the relaxed requirements; (3) Florida grapefruit shipments began on
September 1, 1996, and the season will be well underway by November 11,
1996; and (4) this rule provides a 30-day comment period and any
comments
[[Page 64253]]
received will be considered prior to 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. Section 905.306 is amended by revising the entries for
grapefruit in paragraph (a), Table I, to read as follows:
Sec. 905.306 Orange, Grapefruit, Tangerine, and Tangelo Regulation.
(a) * * *
Table I
Minimum
Variety Regulation period Minimum Grade diameter
(inches)
(1) (2)........................ (3).............................. (4)
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* * * * * *
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Grapefruit:
Seeded, red.................... Except on and after 9/01/94 U.S. No. 1....................... 3-12/16
Seeded, red.................... On and after 9/01/94....... U.S. No. 1....................... 3-12/16
Seedless, red.................. 11/13/95-11/10/96.......... U.S. No. 1....................... 3-5/16
11/11/96-11/9/97........... U.S. No. 1....................... 3-5/16
On and after 11/10/97...... U.S. No. 1....................... 3-9/16
Seedless, except red........... On and after 9/01/94....... U.S. No. 1....................... 3-9/16
* * * * * *
*
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PART 944--FRUITS; IMPORT REGULATIONS
4. In Sec. 944.106, paragraph (a) is revised to read as follows:
Sec. 944.106 Grapefruit import regulation.
(a) Pursuant to Section 8e [7 U.S.C. Section 608e-1] of the
Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-
674], and Part 944--Fruits; Import Regulations, the importation into
the United States of any grapefruit is prohibited unless such
grapefruit meet the following minimum grade and size requirements for
each specified grapefruit classification:
Minimum
Grapefruit classification Regulation period Minimum grade diameter
(inches)
(1) (2)........................ (3).............................. (4)
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Seeded............................. On and after 9/1/94........ U.S. No. 1....................... 3-12/16
Seedless, red...................... 11/13/95--11/10/96......... U.S. No. 1....................... 3-5/16
11/11/96--11/9/97.......... U.S. No. 1....................... 3-5/16
On and after 11/10/97...... U.S. No. 1....................... 3-9/16
Seedless, except red............... On and after 9/1/94........ U.S. No. 1....................... 3-9/16
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Dated: November 27, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-30861 Filed 12-3-96; 8:45 am]
BILLING CODE 3410-02-P