[Federal Register Volume 60, Number 78 (Monday, April 24, 1995)]
[Proposed Rules]
[Pages 20059-20061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9970]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 906 and 944
[Docket No. FV-95-906-1PR]
Oranges Grown in the Lower Rio Grande Valley in Texas and
Imported Oranges; Proposed Suspension of Regulations for Domestic and
Imported Oranges
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed suspension of rule.
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SUMMARY: This document invites written comments on a proposal to
suspend, for the period July 1 through August 31, the handling
regulations for oranges grown in the Lower Rio Grande Valley in Texas
and the orange import regulations. Currently, the effective period for
both domestic and imported oranges is January 1 through December 31 of
each year. The purpose of the proposed suspension is to remove
unnecessary handling regulations applicable to shipments of Texas
oranges for the two month period July and August. The proposed
suspension of regulations applicable to imported oranges is necessary
under section 8e of the amended Agricultural Marketing Agreement Act of
1937.
DATES: Comments must be received by May 15, 1995.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed suspension. Comments must be sent in
triplicate to the Docket Clerk, Fruit and Vegetable Division, AMS,
USDA, P.O. Box 96456, room 2523-S, Washington, D.C. 20090-6456, or by
facsimile at 202-720-5698. 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: 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: 202-720-2431; or Belinda G. Garza, McAllen Marketing Field
Office, USDA/AMS, 1313 East Hackberry, McAllen, TX 78501; telephone:
210-682-2833.
SUPPLEMENTARY INFORMATION: This proposed suspension is issued under
Marketing Agreement and Order No. 906 (7 CFR Part 906) regulating the
handling of oranges and grapefruit [[Page 20060]] 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 proposed 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 proposed
suspension in conformance with Executive Order 12866.
This proposed suspension has been reviewed under Executive Order
12778, Civil Justice Reform. This proposed 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 proposed 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.
Under the marketing order, oranges grown in the Lower Rio Grande
Valley in Texas are currently 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. 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, this rule proposes that the quality and size regulations for
both Texas and imported oranges be in effect when the Texas shipping
season begins and all fruit handled during the Texas shipping season
would be subject to those 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
[[Page 20061]] 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 and, therefore, we are proposing a suspension. 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
proposes suspending 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 would be in
effect 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.
Currently, imported oranges are subject to minimum grade and size
requirements under Sec. 944.312 (7 CFR 944.312). These requirements are
in effect on a continuous basis because domestic oranges are currently
subject to the minimum grade and size requirements under Marketing
Order No. 906 on a continuous basis. This rule proposes suspending
section 944.312(a) for the period July 1 through August 31 indefinitely
so that it would be effective September 1 through June 30, the same
time period that is being proposed for 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 would result in relaxed import requirements because the
orange import regulations would not be in effect during the months of
July and August. This could 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.
Based on the above, the Administrator of the AMS has determined
that this proposed rule would not have a significant economic impact on
a substantial number of small entities.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this proposed rule.
This proposed rule 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.
A comment period of 20 days is deemed appropriate because this rule
would relax requirements currently in effect, and to be of maximum
benefit it should be in effect by July 1, 1995.
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 proposed to be 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.
Sec. 906.365 [Amended]
2. In Sec. 906.365, paragraph (a)(7) is added, reading 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.
* * * * *
PART 944--FRUITS; IMPORT REGULATIONS
Sec. 944.312 [Amended]
3. In Sec. 944.312, paragraph (a)(3) is added, reading as follows:
Sec. 944.312 Orange import regulation.
(a) * * *
(3) Beginning in 1995, this paragraph (a) is suspended each year
from July 1 through August 31.
* * * * *
Dated: April 18, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-9970 Filed 4-21-95; 8:45 am]
BILLING CODE 3410-02-P
