[Federal Register Volume 64, Number 62 (Thursday, April 1, 1999)]
[Rules and Regulations]
[Pages 15634-15636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8067]
[[Page 15634]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 905 and 944
[Docket No. FV99-905-1 FIR]
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: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting, as a
final rule, without change, the provisions of an interim final rule
relaxing the minimum size requirement for red seedless grapefruit 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) under
the Florida citrus marketing order. The marketing order regulates the
handling of oranges, grapefruit, tangerines, and tangelos grown in
Florida and is administered locally by the Citrus Administrative
Committee (Committee). This rule continues to allow handlers and
importers to ship size 56 red seedless grapefruit through November 7,
1999, and is expected to maximize grapefruit shipments to fresh market
channels.
EFFECTIVE DATE: May 3, 1999.
FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast
Marketing Field Office, Marketing Order Administration Branch, F&V,
AMS, USDA, PO 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, or obtain a guide on complying with fruit,
vegetable, and specialty crop marketing agreements and orders 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__N__Guerber@usda.gov. You may also view the
marketing agreements and orders small business compliance guide at the
following web site: http://www.ams.usda.gov/fv/moab.html.
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 standard 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 rule continues in effect changes to the order's rules and
regulations relaxing the minimum size requirement for domestic
shipments of red seedless grapefruit from size 48 (3\9/16\ inches
diameter) to size 56 (3\5/16\ inches diameter) through November 7,
1999. This rule allows for the continued shipment of size 56 red
seedless grapefruit. Absent this relaxation, the minimum size would be
size 48 (3\9/16\ inches diameter). The Committee met on September 3,
1998, 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 final rule continues the adjustment to Table I establishing a
minimum size of 56 through November 7, 1999. 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 final rule
also continues the adjustment Sec. 944.106 establishing a minimum size
of 56 through November 7, 1999. Export requirements for Florida red
seedless grapefruit are not changed by this rule.
In making its recommendation, the Committee considered estimated
supply and demand. The supply of red seedless grapefruit is expected to
be slightly higher than last season based on the Department's official
crop estimate of 31,500,000 1\3/5\ bushel boxes as compared to last
season's utilized supply of 30,600,000 boxes. The fruit is expected to
be high quality with a good appearance. The Committee reports that it
expects fresh market demand to be sufficient to permit the shipment of
size 56 red seedless grapefruit grown in
[[Page 15635]]
Florida during the entire 1998-99 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, 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
1998-99 season, and will provide for the maximization of 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 grapefruit is for export.
During the first 11 weeks of the season (September 21 through
December 6) a volume regulation limited the volume of small red
seedless grapefruit entering the fresh market. That action was
successful in moving smaller-sized fruit to those markets demanding
such sizes (63 FR 51511, September 28, 1998; 64 FR 3807, January 26,
1999). The Committee agreed that this regulation helped reduce the
negative effects of size 56 on the domestic market.
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 7, 1999. This
rule will have a beneficial impact on producers and handlers because it
will permit Florida grapefruit handlers to make available those sizes
of fruit needed to meet anticipated market demand for the 1998-99
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 continues to relax 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
continues the minimum size requirement for imported red seedless
grapefruit at 3\5/16\ inches in diameter (size 56) until November 7,
1999, to reflect the relaxation 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 final 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 1997-98 season,
the average annual f.o.b. price for fresh Florida red seedless
grapefruit during the 1997-98 season was around $6.30 per \4/5\ bushel
cartons, and total fresh shipments for the 1997-98 season are estimated
at 15.5 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 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.
Florida handlers shipped approximately 42,410,000 \4/5\ bushel
cartons of grapefruit to the fresh market during the 1997-98 season. Of
these cartons, about 21,860,000 were exported. In the past three
seasons, domestic shipments of Florida grapefruit averaged about
21,148,000 cartons. During the period 1991 through 1996, imports have
averaged 734,800 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 continues to relax the
minimum size requirement for domestic shipments of red seedless
grapefruit from size 48 (3\9/16\ inches diameter) to size 56 (3\5/16\
inches diameter) through November 7, 1999. No change is being made in
the minimum size 56 requirement for export shipments. Absent this
relaxation, the minimum size requirement for domestic shipments would
be size 48. The motion to allow shipments of size 56 red seedless
grapefruit through November 7, 1999, was passed by the Committee
unanimously. In addition, there was a volume regulation in effect for
the first 11 weeks of this season (September 21 through December 6)
that limited the volume of small red seedless grapefruit entering the
fresh market (63 FR 51511, September 28, 1998; 64 FR 3807, January 26,
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.
This rule continues to relax the minimum size from size 48 (3\9/16\
inches diameter) to size 56 (3\5/16\ inches diameter) through November
7, 1999. 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. This is consistent with current and
anticipated
[[Page 15636]]
demand in those markets for the 1998-99 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 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.
In 1996, imports of grapefruit totaled 15,000 tons (approximately
705,880 cartons). The Bahamas were the principal source, accounting for
95 percent of the total. Remaining imports were supplied by the
Dominican Republic and Israel. Imported grapefruit enters the United
States from October through May. Imports account for less than five
percent of domestic shipments.
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 will also be applicable to imported grapefruit.
This rule relaxes the minimum size 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 7, 1999.
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 51.760 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 September 3, 1998, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue. Finally, interested persons were invited to submit
information on the regulatory and informational impacts of this action
on small businesses.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this final rule.
An interim final rule concerning this action was published in the
Federal Register on November 10, 1998 (63 FR 62919). Copies of the rule
were mailed by the Committee's staff to all Committee members and
grapefruit handlers. In addition, the rule was made available through
the Internet by the Office of the Federal Register. That rule provided
for a 60-day comment period which ended January 11, 1999. No comments
were received.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
finalizing the interim final rule, without change, as published in the
Federal Register (63 FR 62919, November 10, 1998) will tend to
effectuate the declared policy of the Act.
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.
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
PART 944--FRUITS; IMPORT REGULATIONS
Accordingly, the interim final rule amending 7 CFR parts 905 and
944 which was published at 63 FR 62919 on November 10, 1998, is adopted
as a final rule without change.
Dated: March 26, 1999.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-8067 Filed 3-31-99; 8:45 am]
BILLING CODE 3410-02-P
