94-17245. Raisins Produced From Grapes Grown in California; Removal of an Exemption for Raisins Produced in Southern California and Exported to Mexico  

  • [Federal Register Volume 59, Number 135 (Friday, July 15, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-17245]
    
    
    [[Page Unknown]]
    
    [Federal Register: July 15, 1994]
    
    
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    DEPARTMENT OF AGRICULTURE
    7 CFR Part 989
    
    [Docket No. FV94-989-3PR]
    
     
    
    Raisins Produced From Grapes Grown in California; Removal of an 
    Exemption for Raisins Produced in Southern California and Exported to 
    Mexico
    
    AGENCY: Agricultural Marketing Service, USDA.
    
    ACTION: Proposed rule with request for comments.
    
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    SUMMARY: This proposed rule would revise the administrative rules and 
    regulations established under the Federal marketing order for raisins 
    produced from grapes grown in California. It would remove a provision 
    that currently exempts raisins produced from grapes dried on the vine 
    in southern California and exported to Mexico from all marketing order 
    requirements. This rule is based on a unanimous recommendation of the 
    Raisin Administrative Committee (Committee), which is responsible for 
    local administration of the order. Elimination of the exemption is 
    intended to facilitate administration and improve enforcement efforts.
    
    DATES: Comments must be received by August 1, 1994.
    
    ADDRESSES: Interested persons are invited to submit written comments 
    concerning this proposed rule. Comments must be sent in triplicate to 
    the Docket Clerk, Marketing Order Administration Branch, F&V, AMS, 
    USDA, room 2523-S, P.O. Box 96456, Washington, DC 20090-6456, FAX (202) 
    720-5698. Comments should reference this 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: Richard P. Van Diest, Marketing 
    Specialist, California Marketing Field Office, Fruit and Vegetable 
    Division, AMS, USDA, 2202 Monterey Street, Suite 102B, Fresno, 
    California 93721; telephone: (209) 487-5901, or FAX (209) 487-5906; or 
    Mark A. Slupek, Marketing Specialist, Marketing Order Administration 
    Branch, F&V, AMS, USDA, room 2523-S, P.O. Box 96456, Washington, DC 
    20090-6456; Telephone: (202) 205-2830, or FAX (202) 720-5698.
    
    SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing 
    Agreement and Order No. 989 [7 CFR part 989], both as amended, 
    regulating the handling of raisins produced from grapes grown in 
    California. The order is effective under the Agricultural Marketing 
    Agreement Act of 1937, as amended, [7 USC 601-674], hereinafter 
    referred to as the ``Act.''
    
        The Department of Agriculture (Department) 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 
    action 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 8c(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 a 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 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 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.
    
        There are approximately 20 handlers of California raisins who are 
    subject to regulation under the raisin marketing order, and 
    approximately 5,000 producers in the regulated area. Small agricultural 
    producers have been defined by the Small Business Administration [13 
    CFR 121.601] as those having annual receipts of less than $500,000, and 
    small agricultural service firms are defined as those whose annual 
    receipts are less than $5,000,000. A majority of producers and a 
    minority of handlers of California raisins may be classified as small 
    entities.
    
        This proposed rule would remove a provision that exempts raisins 
    produced from grapes dried on the vine in southern California and 
    exported to Mexico in natural condition from all marketing order 
    requirements. It is based on a unanimous recommendation of the 
    Committee and other available information.
    
        Section 989.60 of the order provides that the Committee may 
    establish, with the approval of the Secretary, rules and procedures to 
    exempt from regulations raisins produced in southern California (i.e., 
    the counties of Riverside, Imperial, San Bernardino, Ventura, Orange, 
    Los Angeles, and San Diego) and disposed of for distillation, livestock 
    feed, or by export in natural condition to Mexico.
    
        Paragraph (b) of section 989.160 of Subpart--Administrative Rules 
    and Regulations (7 CFR 989.102-989.176) currently exempts raisins 
    produced from grapes dried on the vine in those southern California 
    counties, which are disposed of for use in distillation, livestock 
    feed, or by export in natural condition to Mexico, from all marketing 
    order requirements. This proposed rule would eliminate the exemption 
    that applies to those raisins exported in natural condition to Mexico.
        When that exemption provision was established in the early 1970's, 
    the quantities of raisins exported to Mexico were relatively small and 
    were of off grade quality. It was determined at that time that the 
    export exemption would not interfere with order regulations or with 
    accomplishing program objectives.
        Diminished demand in recent years for off-grade raisins and raisin 
    residual material for distillation in California has made export in 
    natural condition to Mexico a relatively lucrative market. The 
    Committee has confirmed reports that large volumes of poor quality 
    raisins, including lots as large as forty to fifty thousand pounds, 
    have been exported into Mexico from southern California and other areas 
    of California. This is a significant departure from the situation which 
    existed when the exemption was first implemented. Raisins from areas 
    which are not exempt from the provisions of the order appear to be 
    passing into Mexico in violation of the regulations.
        The North American Free Trade Agreement (NAFTA) has effected the 
    removal of import duties and license requirements, opening the Mexican 
    market to raisins which meet the quality requirements of the order. 
    Hence, there is now an opportunity to build an export market in Mexico 
    for high quality raisins. The Committee believes that all raisins 
    eligible for export to Mexico need to be subject to the quality 
    requirements of the order. The Committee also believes that the 
    regulation of such raisins is essential to meeting program objectives 
    and improving compliance efforts.
        On the basis of this information, the Committee, on April 16, 1994, 
    unanimously recommended the removal of the exemption that applies to 
    raisins produced from grapes dried on the vine in southern California 
    and exported in natural condition to Mexico.
        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.
        Interested persons are invited to submit their views and comments 
    on this proposal. A 15-day comment period is considered appropriate 
    because the Committee would like to stop further abuse of the current 
    provisions as soon as possible to accomplish marketing order 
    objectives.
    
    List of Subjects in 7 CFR Part 989
    
        Grapes, Marketing agreements, Raisins, Reporting and recordkeeping 
    requirements.
    
        For the reasons set forth in the preamble, 7 CFR part 989 is 
    proposed to be amended as follows:
    
    PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
    
        1. The authority citation for 7 CFR part 989 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 601-674.
    
        2. Section 989.160 is amended by revising paragraph (b) to read as 
    follows:
    
    
    Sec. 989.160   Exemptions.
    
        (a) * * *
        (b) Disposition of raisins produced in Southern California. Raisins 
    produced from grapes dried on the vine in the counties of Riverside, 
    Imperial, San Bernardino, Ventura, Orange, Los Angeles, and San Diego, 
    which are disposed of for use in distillation or livestock feed, shall 
    be exempt from the provisions of this part.
    
        Dated: July 11, 1994.
    Robert C. Keeney,
    Deputy Director, Fruit and Vegetable Division.
    [FR Doc. 94-17245 Filed 7-14-94; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Published:
07/15/1994
Department:
Agriculture Department
Entry Type:
Uncategorized Document
Action:
Proposed rule with request for comments.
Document Number:
94-17245
Dates:
Comments must be received by August 1, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: July 15, 1994, Docket No. FV94-989-3PR
CFR: (1)
7 CFR 989.160