[Federal Register Volume 59, Number 132 (Tuesday, July 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16758]
[[Page Unknown]]
[Federal Register: July 12, 1994]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 46
RIN 0581-AB28
[Docket No. FV93-353]
Regulations (Other Than Rules of Practice) Under the Perishable
Agricultural Commodities Act, 1930 (PACA)
AGENCY: Agricultural Marketing Service (USDA).
ACTION: Proposed rule.
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SUMMARY: This proposed rule would invite comments extending PACA
coverage to include fresh and frozen fruits and vegetables that are
oil-blanched, including frozen french fried potato products. Under
previous regulations, suppliers of these commodities suffered
considerable financial losses because oil-blanched products were
excluded from the PACA. This proposed rule would grant dealers in
frozen oil-blanched products the same rights afforded dealers whose
frozen product is water blanched.
DATES: Comments must be received on or before August 11, 1994.
ADDRESSES: All comments concerning this proposed rule should be
addressed to USDA, AMS, F&V DIVISION, PACA BRANCH, Room 2095-S.
Building, P.O. Box 96456, 14th & Independence Avenue, S.W., Washington,
D.C. 20090-6456.
FOR FURTHER INFORMATION CONTACT: J.R. Frazier, Assistant Chief, PACA
Branch, at 202-720-4180.
SUPPLEMENTARY INFORMATION: The Department of Agriculture is issuing
this rule in conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. It is not intended to have retroactive effect. This
rule will not preempt any State or local laws, regulation, 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 1650 of the Act, a
person subject to the Plan may file a petition with the Secretary
stating that the Plan or any provision of the Plan, or any obligation
imposed in connection with the Plan, is not in accordance with law and
requesting a modification of the Plan or an exemption from the Plan.
The petitioner is afforded the opportunity for a hearing on the
petition. After such hearing, the Secretary will make a ruling on the
petition. The Act provides that the district courts of the United
States in any district in which a person who is a petitioner resides or
carries on business are vested with jurisdiction to review the
Secretary's ruling on the petition, if a complaint for that purpose is
filed within 20 days after the date of the entry of the ruling.
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 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.
The proposed rule would extend PACA coverage to include frozen
fruits and vegetables that are oil-blanched, especially frozen french
fried potato products. Under previous regulations, suppliers of these
commodities suffered considerable financial losses because oil-blanched
products were excluded from the PACA. This proposed rule would grant
dealers in frozen oil-blanched products the same rights afforded
dealers whose frozen product is water blanched.
The PACA establishes a code of fair trading by prohibiting certain
unfair practices in the marketing of fresh or frozen fruits and
vegetables. The law requires that parties fulfill their contractual
obligations, and provides a forum wherein persons who suffer damages
can recover their losses.
The PACA also impresses a statutory trust, for the benefit of
unpaid sellers or suppliers, on all perishable agricultural commodities
received by a commission merchant, dealer or broker and all inventories
of food or other products derived from the sale of such commodities or
products. Sellers who preserve their eligibility are entitled to
payment ahead of other creditors, from trust assets of money owed on
past due accounts.
As indicated in documents submitted to this Agency by the Frozen
Potato Products Institute, frozen potato products represent the largest
single frozen commodity shipped in the United States. These documents
further state that potatoes cannot be economically frozen and shipped
long distances unless they first undergo oil blanching. To exclude such
a substantial portion of the frozen food industry is inconsistent with
the intent of the PACA to protect dealers in fresh or frozen fruits and
vegetables.
List of Subjects in 7 CFR Part 46
Agricultural commodities, Brokers, Penalties, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR Part 46 of the
Code of Federal Regulations is proposed to be amended as follows:
PART 46--REGULATIONS (OTHER THAN RULES OF PRACTICE) UNDER THE
PERISHABLE AGRICULTURAL COMMODITIES ACT, 1930
1. The authority citation for Part 46 continues to read as follows:
Authority: Sec. 15, 46 Stat. 537; 7 U.S.C. 499o.
2. Section 46.2, paragraph (u) is revised to read as follows:
Sec. 46.2 Definitions.
* * * * *
(u) Fresh fruits and fresh vegetables include all produce in fresh
form generally considered as perishable fruits and vegetables, whether
or not packed in ice or held in common or cold storage, but do not
include those perishable fruits and vegetables which have been
manufactured into articles of food of a different kind or character.
The effects of the following operations shall not be considered as
changing a commodity into a food of a different kind or character:
Water, steam, or oil blanching, chopping, color adding, curing,
cutting, dicing, drying for the removal of surface moisture;
fumigating, gassing, heating for insect control, ripening and coloring;
removal of seeds, pits, stems, calyx, husk, pods, rind, skin, peel, et
cetera; polishing, precooling, refrigerating, shredding, slicing,
trimming, washing with or without chemicals; waxing, adding of sugar or
other sweetening agents; adding ascorbic acid or other agents used to
retard oxidation; mixing of several kinds of sliced, chopped, or diced
fruits or vegetables for packaging in any type of containers; or
comparable methods of preparation.
* * * * *
Dated: July 6, 1994.
Eric M. Forman,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 94-16758 Filed 7-11-94; 8:45 am]
BILLING CODE 3410-02-P
