[Federal Register Volume 61, Number 90 (Wednesday, May 8, 1996)]
[Proposed Rules]
[Pages 20754-20756]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11460]
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Proposed Rules
Federal Register
________________________________________________________________________
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. 61, No. 90 / Wednesday, May 8, 1996 /
Proposed Rules
[[Page 20754]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 911 and 944
[Docket No. FV96-911-2PR]
Limes Grown in Florida and Imported Limes; Change in Regulatory
Period
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposal invites comments on proposed changes to the
regulatory period currently prescribed under the lime marketing order
and the lime import regulations. The marketing order regulates the
handling of limes grown in Florida and is administered locally by the
Florida Lime Administrative Committee (committee). This rule would
modify language in both the domestic and import regulations to change
the regulatory period to January 1 through May 31, from its current
continuous, year round, implementation. This proposed rule is in
response to changes in the market, rising costs of production and the
cost of replanting in the aftermath of Hurricane Andrew. By reducing
the regulatory period and its associated costs, this rule should
decrease industry expenses. The changes in import requirements are
necessary under section 8e of the Agricultural Marketing Agreement Act
of 1937.
DATES: Comments must be received by June 7, 1996.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments must be sent in triplicate to the
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S,
P.O. Box 96456, Washington, DC 20090-6456, FAX Number (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 available for
public inspection in the Office of the Docket Clerk during regular
business hours.
FOR FURTHER INFORMATION CONTACT: Aleck Jonas, Southeast Marketing Field
Office, Marketing Order Administration Branch, F&V, AMS, USDA, P.O. Box
2276, Winter Haven, Florida 33883; telephone: (941) 299-4770; or
Britthany Beadle, Marketing Order Administration Branch, F&V, AMS,
USDA, room 2522-S, P.O. Box 96456, Washington, DC 20090-6456:
telephone: (202) 720-3923.
SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing
Agreement and Marketing Order No. 911 (7 CFR part 911), as amended,
regulating the handling of limes, hereinafter referred to as the
``order.'' This 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 proposed rule is also issued under section 8e of the Act,
which provides that whenever certain specified commodities, including
limes, 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 proposed rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This proposed rule is not intended to have
retroactive effect. This proposal 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 in equity to review the
Secretary's ruling on the petition, provided an action is filed not
later than 20 days after 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 the requirements set forth in the Regulatory
Flexibility Act (RFA), the Agricultural Marketing Service (AMS) has
considered the economic impact of this proposed rule 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 10 handlers subject to regulation under the
order and about 30 producers of Florida limes. There are approximately
35 importers of limes. Small agricultural service firms, which include
lime handlers and importers, have been defined by the Small Business
Administration (13 CFR 121.601) as those whose annual receipts are less
than $5,000,000, and small agricultural producers are defined as those
whose annual receipts are less than $500,000. A majority of these
handlers, producers, and importers may be classified as small entities.
This proposed rule invites comments on a change to the regulatory
period currently prescribed under the Florida lime marketing order.
This rule would modify language in the order's rules and regulations to
change the regulatory period from its current continuous, year round,
implementation to January 1 through May 31. This change was recommended
by the committee on a vote of 6 supporting and 4 against.
Section 911.48 of the lime marketing order provides authority to
issue regulations establishing specific pack,
[[Page 20755]]
container, grade and size requirements. These requirements are
specified under Secs. 911.311, 911.329 and 911.344. Section 911.51
requires inspection and certification that these requirements are met.
Currently, there is no regulatory period stated in the order, and the
regulations are applied on a continuous year-round basis.
There is general agreement in the industry for the need to reduce
costs and increase grower returns under the current market conditions.
The committee made this recommendation to decrease industry expenses by
reducing the regulatory period and its associated costs. Prior to
Hurricane Andrew, there were approximately 6,500 producing acres of
limes in the production area. Currently, there are approximately 1,500
acres of producing lime trees in the production area. Growers are
expending approximately $2,500 per acre to plant new groves and replant
lost ones. They are also spending approximately $1,500 per acre per
year to maintaining new groves of young trees which will not produce
fruit for several years, thus, giving no return for investment. During
the 1991-1992 season prior to Hurricane Andrew, assessments were
collected on 1,682,677 bushels. In the 1993-1994 and the 1994-1995
seasons after the storm, assessments were collected on 228,455 bushels
and 283,977 bushels respectively. Lost income from reduced volume and
the costs of replanting and maintaining groves, with no immediate
monetary return, has caused the industry to seek cost saving measures.
Historically, the June 1 through December 31 time period is a time
when fruit is plentiful, prices are low, and the overall quality of the
crop is good for both domestic and imported supplies. The committee
maintains that under these abundant and good quality fruit conditions,
competition and market demand will keep quality standards high.
Conversely, during the time period, January 1 through May 31, past
seasons have shown that for both domestic and imported fruit, skins are
thicker, the juice content is lower and supplies of fruit are limited.
Because the temptation to ship poor quality is greater under these high
demand and low supply conditions, the committee believes regulations
are necessary to prevent poor quality fruit from entering and damaging
the lime market. Therefore, the committee believes that for the period
June 1 through December 31, pack, container, grade and size regulations
can be ended. Competition under good quality and high supply conditions
should protect the consumer from poor quality fruit entering the market
during the proposed deregulated period. The application of regulations
from January 1 through May 31, will insure uniform quality throughout
the year.
Growers, handlers and importers should benefit from the reduced
costs of no regulations, such as no inspection fees during the
deregulated period. Committee expenses should also be reduced by
requiring fewer meetings and less compliance monitoring. Reporting
requirements are not affected by this change and will continue to be
collected year-round.
One alternative to the proposed rule was to leave the regulations
in place year-round. This alternative was rejected by the committee
because the need to take some action was considered necessary under the
current market conditions. It was argued that when these regulations
were put in place, the quality of both the domestic and imported lime
supply varied greatly. Over the years, improved agricultural practices
have produced a consistent high quality lime supply. This is
particularly true during the June through December time period. The
majority of committee members believe that the regulations are
unnecessary when there is such a large supply of high quality fruit.
Another alternative raised was to terminate the marketing order.
Although seriously considered, committee members rejected the idea
under arguments that during the January through May time period when
supplies are reduced and juice content of all limes is lower, poor
quality fruit could enter the market. Consumer dissatisfaction with
poor quality limes could lead to product rejection and substitution
with lemons, causing a lost market share. This proposed rule represents
a compromise of the two alternatives presented. The committee believes
that this change will provide the consumer with quality fruit
throughout the year, while reducing industry costs.
Section 8e of the Act provides that when certain domestically
produced commodities, including limes, 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 would change the regulatory period under the domestic handling
regulations, a corresponding change to the import regulations must also
be considered.
Minimum grade and size requirements for limes imported into the
United States are currently in effect under Sec. 944.209 (7 CFR
944.209). This proposed rule would modify language in the import
regulations to change the regulatory period from its current
continuous, year round, implementation to January 1 through May 31.
This rule would result in relaxed import requirements because the lime
import regulations would not be in effect during the months of June
through December. This could result in reduced costs to importers.
Mexico is the largest importer of limes into the United States.
During the 1994-95 season, Mexico imported 6,075,685 bushels into the
United States, while all other import sources shipped a combined total
of 201,053 bushels during the same time period. The majority of Mexican
imports enter the United States between June 1 and December 31, the
proposed deregulated period covered in this rule.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this proposed rule,
as it pertains to limes imported into the United States.
Based on available information, the Administrator of the AMS has
determined that this action would not have a significant economic
impact on a substantial number of small entities.
A 30-day comment period is provided to allow interested persons to
respond to this proposal. All written comments timely received will be
considered before a final determination is made on this matter.
List of Subjects
7 CFR Part 911
Limes, Marketing agreements, Reporting and recordkeeping
requirements.
7 CFR Part 944
Avocados, Food grades and standards, Grapefruit, Grapes, Imports,
Kiwifruit, Limes, Olives, Oranges.
For the reasons set forth in the preamble, 7 CFR parts 911 and 944
are proposed to be amended as follows:
1. The authority citation for 7 CFR part 911 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
PART 911--LIMES GROWN IN FLORIDA
Sec. 911.311 [Amended]
2. In Sec. 911.311, paragraph (a), introductory text, is amended by
removing the words ``No handler'' and adding in its place the words
``From January 1 through May 31 of each season, no handler''.
[[Page 20756]]
Sec. 911.329 [Amended]
3. In Sec. 911.329, paragraph (a) is amended by removing the words
``No handler'' and adding in its place the words ``From January 1
through May 31 of each season, no handler''.
Sec. 911.344 [Amended]
4. In Sec. 911.344, paragraph (a), is introductory text, is amended
by removing the words ``No handler'' and adding in its place the words
``From January 1 through May 31 of each season, no handler''
PART 944--FRUITS, IMPORT REGULATIONS
5. In Sec. 944.209, paragraph (a) is revised to read as follows:
Sec. 944.209 Lime Import Regulation 10.
(a) Applicability to imports. Pursuant to section 8e of the act and
Part 944-Fruits; Import Regulations, the importation into the United
States from January 1 through May 31 of any limes is prohibited unless
such limes meet the minimum grade and size requirements specified in
Sec. 911.344 Florida Lime Regulation 43.
* * * * *
Dated: May 2, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-11460 Filed 5-7-96; 8:45 am]
BILLING CODE 3410-02-P
