[Federal Register Volume 61, Number 131 (Monday, July 8, 1996)]
[Rules and Regulations]
[Pages 35592-35593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17197]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 958
[FV96-958-1FR]
Onions Grown in Certain Designated Counties in Idaho, and Malheur
County, Oregon, and Imported Onions; Modification of Size Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule changes the ``repacker/prepacker'' size
designations for all varieties of onions except white or red varieties
by increasing the minimum diameter from 1\1/2\ inches to 1\3/4\ inches,
and the maximum diameter from 2\1/2\ inches to 2\3/4\ inches for onions
in this size category. Recent trends in buyer preference reflect an
increasing demand for larger size onions in the ``repacker/prepacker''
category. This final rule will benefit producers and handlers by
increasing their flexibility and efficiency in the packaging of
``repacker/prepacker'' size onions. As provided under section 8e of the
Agricultural Marketing Agreement Act of 1937, the change to the minimum
size requirement also applies to all imported onions except white or
red varieties.
EFFECTIVE DATE: July 15, 1996.
FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Division, AMS, USDA, 1220 SW Third Avenue, room 369,
Portland, Oregon 97204-2807; telephone: (503)326-2724; FAX: (503)326-
7440; or Robert F. Matthews, Marketing Order Administration Branch,
Fruit and Vegetable Division, AMS, USDA, room 2523, South Building,
P.O. Box 96456, Washington, D.C. 20090-6456; telephone: (202)690-0464;
FAX: (202)720-5698.
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Agreement No. 130 and Marketing Order No. 958 (7 CFR Part 958), both as
amended, regulating the handling of onions grown in certain designated
counties in Idaho and Malheur County, Oregon. The marketing agreement
and marketing 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 final rule, which also affects the minimum size requirements
for all varieties of imported onions, except white or red varieties, is
also issued pursuant to section 8e of the Act. The provisions of
section 8e and the onion import regulations are discussed later in this
final rule.
The Department of Agriculture (Department) is issuing this rule in
conformance with Executive Order 12866.
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This action is not intended to have retroactive
effect. This final 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 proceedings 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 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 those
established under Federal marketing orders which regulate the handling
of domestically produced products. Thus, this final rule should have
small entity orientation, and impact both small and large business
entities in a manner comparable to those issued under marketing orders.
There are currently 34 handlers subject to regulation under the
marketing order and approximately 550 onion producers in the regulated
production area. In addition, at least 148 importers of onions are
subject to import regulations and will be affected by this final rule.
Small agricultural service firms have been defined by the Small
Business Administration (13 CFR 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 handlers and producers of Idaho-Eastern Oregon onions may
be classified as small entities. The majority of importers may also be
classified as small entities.
This final rule changes the ``repacker/prepacker'' size
designations for all varieties of onions except white or red varieties
by increasing the minimum diameter from 1\1/2\ inches to 1\3/4\ inches,
and the maximum diameter from 2\1/2\ inches to 2\3/4\ inches for onions
in this size category. Recent trends in buyer preference reflect an
increasing demand for larger size onions in the ``repacker/prepacker''
category. This final rule will benefit producers and handlers by
allowing them to better meet the needs of their customers, who desire
slightly larger ``repacker/prepacker'' size onions.
As provided under section 8e of the Act, the change to the minimum
size requirement also applies to all imported onions except white or
red varieties. The benefits to producers and handlers should apply also
to importers. The slight increase in minimum size is expected also to
benefit importers by recognizing recent trends in buyer preference for
larger size onions.
Because this rule is expected to benefit and have a positive impact
on producers, handlers, importers, and consumers of onions, the AMS has
determined that the issuance of this final rule will not have a
significant
[[Page 35593]]
economic impact on a substantial number of small entities.
Pursuant to authority contained in section 958.51 of the marketing
order, the Idaho-Eastern Oregon Onion Committee (Committee), at its
November 16, 1995, meeting, unanimously recommended changing the
minimum and maximum sizes set forth in section 958.328(a)(3)(ii) of the
handling regulation. For this size category, the Committee recommended
increasing the minimum diameter from 1\1/2\ inches to 1\3/4\ inches,
and the maximum diameter from 2\1/2\ inches to 2\3/4\ inches for all
onions except white or red varieties produced and handled in the
production area. Yellow onions are the major variety produced in the
regulated production area.
This final rule modifies a marketing order size category that is
recognized by the onion industry as ``repacker'' or ``prepacker'' size
onions. Onions in this size category are generally packed and shipped
in 50-pound sacks for later repacking into various consumer packs.
The U.S. Standards for Grades of Onions were recently amended to
include a classification for ``repacker/prepacker'' size onions (60 FR
46976, September 8, 1995), effective October 10, 1995. Section 51.2836
of the U.S. Standards defines such onions as those ranging from a
minimum diameter of 1\3/4\ inches to a maximum diameter of 3 inches.
The U.S. Standards also specify that not more than 5 percent of the
onions in a lot may be undersized and that not more than 10 percent may
be oversized.
Recent trends in buyer preference reflect an increasing demand for
larger size onions in the ``repacker/prepacker'' category. The
Committee reports that the current maximum diameter of 2\1/2\ inches
for this size category is too restrictive and has resulted in a high
percentage of onions being packed in a different category due to
oversize. This has resulted in fewer ``repacker/prepacker'' size onions
being available for market. With an increase in the maximum allowable
diameter to 2\3/4\ inches for ``repacker/prepacker'' size onions, the
Committee expects the quantity of such onions available for market to
increase. The Committee recommended an increase to 2\3/4\ inches rather
than 3 inches, the upper limit of the size range specified in the U.S.
Standards, because the smaller size is more suitable for this industry
and its customers. In addition to the increase in the maximum diameter
for onions in this category, the Committee recommended that the minimum
diameter be increased from 1\1/2\ inches to 1\3/4\ inches to be the
same as the recently amended U.S. Standards.
Any costs to handlers and producers attributable to this regulation
are expected to be offset by the benefits derived from improved
returns. The modification increases the volume of onions marketed in
this size category, and is expected to result in higher returns for
producers and handlers.
Section 8e of the Act requires that when certain domestically
produced commodities, including onions, are regulated under a Federal
marketing order, imports of that commodity must meet the same or
comparable grade, size, quality, or maturity requirements. Section 8e
also provides that whenever two or more marketing orders regulating the
same commodity produced in different areas of the United States are
concurrently in effect, the Secretary shall determine which of the
areas produces the commodity in more direct competition with the
imported commodity. Imports must then meet the requirements established
for the particular area.
Grade, size, quality, and maturity regulations have been issued
regularly under both Marketing Order 958 and Marketing Order 959, which
regulates the handling of onions grown in South Texas. Pursuant to
section 8e of the Act, the current import regulation (7 CFR 980.117)
specifies that import requirements for onions are to be based on the
seasonal categories of onions grown in both marketing order areas. The
import regulation specifies that imported onions must meet the
requirements of Marketing Order 958 during the June 5 through March 9
period each season (61 FR 25556; May 22, 1996), and Marketing Order 959
through the remainder of the year. The current import regulation also
provides that all varieties of imported onions, except for white
varieties, must be a minimum of 1\1/2\ inches in diameter. This final
rule will change the import requirements for the period June 5 through
March 9 each marketing year to provide that all varieties of onions
except white or red varieties shall be a minimum of 1\3/4\ inches in
diameter. While no changes are required in the language of
Sec. 980.117, all imported onions other than white or red varieties
will be required to meet the minimum size requirement herein.
The proposed rule concerning this action was published in the May
6, 1996, Federal Register (61 FR 20188), with a 30-day comment period
ending June 5, 1996. No comments were received.
After consideration of all relevant matters presented, including
the information and recommendations submitted by the Committee and
other available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this final rule.
Pursuant to 5 U.S.C. 553, it is also found and determined that good
cause exists for not postponing the effective date of this action until
30 days after publication in the Federal Register because: (1) This
action will provide handlers more marketing flexibility in meeting
buyer preferences; (2) the 1996 crop harvest and shipments are expected
to begin in August and this action needs to be effective promptly to
allow handlers to make their marketing plans; and (3) interested
persons were invited to submit written comments and no comments were
submitted.
List of Subjects in 7 CFR Part 958
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 958 is hereby
amended as follows:
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON
1. The authority citation for 7 CFR part 958 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 958.328 is amended by revising paragraph (a)(3)(ii) to
read as follows:
Sec. 958.328 Handling Regulation.
* * * * *
(a) * * *
(3) * * *
(ii) U.S. No. 1, 1\3/4\ inches minimum to 2\3/4\ maximum diameter;
or
* * * * *
Dated: June 28, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-17197 Filed 7-5-96; 8:45 am]
BILLING CODE 3410-02-P
