[Federal Register Volume 61, Number 151 (Monday, August 5, 1996)]
[Proposed Rules]
[Pages 40550-40551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19854]
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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. 151 / Monday, August 5, 1996 /
Proposed Rules
[[Page 40550]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 911 and 944
[Docket No. FV96-911-1PR]
Limes Grown in Florida and Imported Limes; Increase in the
Minimum Size Requirement
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule invites comments on a proposed increase in
the current minimum size requirement for limes grown in Florida and for
limes imported into the United States. The Florida Lime Administrative
Committee (Committee), is the agency responsible for the local
administration of the marketing order covering limes grown in Florida.
This rule would increase the minimum size requirement from 1 7/8 inches
to 2 inches in diameter during the period of January 1 through May 31.
Larger fruit tend to have a higher juice content. Therefore, the
increase in fruit size would enable handlers to meet the 42 percent
juice content requirement specified in the regulations for limes
shipped to the fresh market. The changes in import requirements are
necessary under section 8e of the Agricultural Marketing Agreement Act
of 1937.
DATES: Comments must be received by October 4, 1996.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments should 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 or by FAX at (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: Caroline C. Thorpe, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2522-S, Washington, DC 20090-6456; telephone: 202-720-
5127; or Aleck J. Jonas, Southeast Marketing Field Office, USDA/AMS,
P.O. Box 2276, Winter Haven, Florida 33883; telephone: 813-299-4770.
Small businesses may request information on compliance with this
regulation by contacting: Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room
2523-S, Washington, D.C. 20090-6456; telephone: 202-720-2491, Fax #
202-720-5698.
SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing
Agreement and Order No. 911 (7 CFR Part 911), as amended, regulating
the handling of limes grown in Florida, hereinafter referred to as the
``order.'' The 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 rule is also issued under section 8e of the Act, which
requires the Secretary of Agriculture to issue grade, size, quality, or
maturity requirements for certain listed commodities, including limes,
imported into the United States that are the same as, or comparable to,
those imposed upon the domestic commodities regulated under the Federal
marketing orders.
The Department of Agriculture (Department) is issuing this proposed
rule in conformance with Executive Order 12866.
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This action is not intended to have retroactive
effect. This proposed 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 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 approximately 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. Interested persons are invited to submit information
on the regulatory and informational impacts of this action on small
businesses.
This rule proposes an increase in the minimum size requirement for
Florida and imported limes, which could impose some additional costs on
handlers and importers, including small entities. However, any
additional costs
[[Page 40551]]
will not impose a significant economic impact. The minimum size
requirement would be applied to both small and large handlers and
importers in the same way. With an increase in the minimum size, the
larger limes are more likely to meet the 42 percent minimum juice
content requirement. This change is expected to reduce the incidence of
repacking and may lower costs to handlers and importers. Increasing the
minimum size would also ensure that such limes would be more mature and
have a higher juice content, which would encourage repeat purchases by
consumers. This increase in quality to the consumer is expected to
increase returns to handlers, importers, and producers. Therefore, AMS
has determined that this action would not have a significant economic
impact on a substantial number of small entities.
Section 911.48 of the lime marketing order provides authority to
issue regulations establishing specific pack, 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, the minimum
size requirement for Florida limes is that they measure at least 1\7/8\
inches in diameter.
The destruction caused by Hurricane Andrew in 1992 has drastically
reduced the lime acreage in Florida from 6,500 acres to approximately
1,500 acres. During the 1991-92 season, prior to Hurricane Andrew,
1,682,677 bushels of limes were assessed. For the 1993-94 season,
assessments were collected on 228,455 bushels, and for the 1994-95
season, assessments were collected on 283,977 bushels of limes. These
factors led the Committee to reconsider current marketing order
requirements, including the 1\7/8\ inches in diameter size requirement.
The Committee met on January 10, 1996, and recommended to increase
the minimum size requirement for Florida limes from 1\7/8\ inches to 2
inches in diameter during the period of January 1 through May 31. The
recommendation passed by a vote of seven in favor to one opposed. The
one dissenting voter did not comment on why he was opposed to the
increase.
Florida lime production and the quantity of lime imports into the
United States reach their lowest point from January through May. During
the 1994-95 season, 32,035 bushels of Florida limes and 2,402,987
bushels of imported limes, were shipped to the fresh market during the
January through May production period. In comparison, 257,178 bushels
of Florida limes and 5,980,669 bushels of imported limes, were shipped
to the fresh market during the peak production period of June through
December.
During the January through May period, prices are generally higher
while lime quality is lower. Market demand however, remains the same as
in the peak production period. These factors have resulted in an
incentive to pack low quality fruit. Also, the juice content
requirement for limes shipped to the fresh market is 42 percent.
Handlers have had difficulty meeting the requirement during the low
production period because limes are less mature and have thicker skins.
The thicker-skinned limes tend to have lower juice content.
Limes that are 2 inches or larger in diameter have a higher juice
content than smaller limes. The larger limes, therefore, have a greater
chance of meeting the 42 percent juice content requirement. Increasing
the minimum size to 2 inches in diameter would therefore result in more
fresh limes meeting the 42 percent juice content requirement. These
limes would pass inspection without the expense of repacking and
regrading the fruit which would reduce handling costs.
The increase would have a positive cost effect on consumers because
it would allow handlers of limes to provide the consumer with higher
quality fruit at a reasonable cost. According to the Committee, the
industry's past sales records indicate that consumers have a preference
for the larger sized limes. Producers and importers of limes would also
benefit by experiencing higher return rates.
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 increase the minimum size requirement for Florida limes, a
corresponding change would also apply to imports.
In a separate rulemaking action, the Department is proposing to
reduce the regulatory period for Florida limes and limes imported into
the United States. The proposed action 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.
Minimum grade, size, quality, and maturity requirements for limes
imported into the United States are currently in effect under
Sec. 944.209 (7 CFR 944.209). This proposal would increase the minimum
size requirement for imported limes from 1\7/8\ inches to 2 inches in
diameter during the period of January 1 through May 31. This rule would
result in more imported limes passing the 42 percent juice content
requirement, providing higher quality fruit at a reasonable cost.
The largest exporter of limes to the United States is Mexico, with
the heaviest volumes of lime shipments occurring between June 1 and
December 31. Mexico exported 6,075,685 bushels of fresh limes to the
United States during the 1994-95 season, while other import sources
shipped a total of 201,053 bushels, combined.
The 1\7/8\ inches in diameter size requirement is not specifically
stated in the lime import regulation. Therefore, no change is needed in
the text of Sec. 944.209.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this proposed rule.
Interested persons are invited to submit comments on this proposal.
A 60-day comment period is deemed appropriate because all parties need
time to ensure all comments are received in order to be of maximum
benefit to the lime industry during the January 1 through May 31
period.
List of Subjects in 7 CFR Part 911
Limes, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth above, 7 CFR part 911 is 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. 911.344 [Amended]
2. In Sec. 911.344, paragraph (a)(3) the words ``at least 1 7/8
inches'' are revised to read ``at least 2 inches''.
Dated: July 31, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-19854 Filed 8-2-96; 8:45 am]
BILLING CODE 3410-02-P
