96-23824. Limes and Avocados Grown in Florida; Relaxation of Container Marking Requirements

[Federal Register Volume 61, Number 182 (Wednesday, September 18, 1996)]
[Rules and Regulations]
[Pages 49050-49051]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23824]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Parts 911 and 915

[Docket No. FV96-911-4FIR]


Limes and Avocados Grown in Florida; Relaxation of Container 
Marking Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
relaxing the container marking requirements prescribed under the 
Federal marketing orders for limes and avocados grown in Florida. The 
marketing orders regulate the handling of limes and avocados grown in 
Florida and are administered locally by the Lime and Avocado 
Administrative Committees (committees). This relaxation reduces the 
number of lime and avocado containers required to be marked with a lot 
stamp number. This rule reduces handling costs and provides more 
flexibility in lime and avocado packing operations.

EFFECTIVE DATE: October 18, 1996.

FOR FURTHER INFORMATION CONTACT: Aleck Jonas, Marketing Specialist, 
Southeast Marketing Field Office, Marketing Order Administration 
Branch, F&V, AMS, USDA, P.O. Box 2276, Winter Haven, Florida 33883; 
telephone: [phone]; Fax # [phone]; or Caroline C. Thorpe, 
Marketing Specialist, Marketing Order Administration Branch, F&V, AMS, 
USDA, room 2522-S, P.O. Box 96456, Washington, DC 20090-6456; 
telephone: [phone]; Fax # [phone]. 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, DC 20090-
6456; telephone [phone]; Fax # [phone].

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Order Nos. 911 and 915 (7 CFR parts 911 and 915), as amended, 
regulating the handling of limes and avocados grown in Florida, 
hereinafter referred to as the ``orders.'' These orders are effective 
under the Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), hereinafter referred to as the ``Act.''
    The Department is issuing this rule in conformance with Executive 
Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This 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 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 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 date of the entry of the ruling.
    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.
    There are approximately 10 handlers of limes and 65 handlers of 
avocados who are subject to regulation under the respective marketing 
order and approximately 115 lime and 165 avocado producers in the 
regulated areas. Small agricultural service firms, which includes 
handlers, are 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 these handlers and producers 
may be classified as small entities.
    This rule relaxes the lot stamping requirements on containers of 
limes and avocadoes that have been palletized prior to block 
inspection. Smaller handling facilities are the primary users of block 
inspection and will benefit from the cost savings of this relaxation. 
Therefore, the AMS has determined that this action will not have a 
significant economic impact on a substantial number of small entities.
    Under the terms of the marketing orders, fresh market shipments of 
Florida limes and avocados are required to be inspected and are subject 
to grade, size, maturity, pack and container requirements. Prior to the 
effective date of the interim final rule, container requirements 
included specifications that all authorized containers of limes and 
avocados be plainly marked with a

[[Page 49051]]

Federal-State Inspection lot stamp number corresponding to the lot 
inspection conducted by an authorized inspector.
    This rule finalizes changes to the container marking requirements 
under the orders. This rule relaxes the lot stamping requirements on 
containers of limes and avocados that have been palletized prior to 
block inspections. These changes were unanimously recommended by the 
committees on March 13, 1996.
    The interim final rule was issued on June 13, 1996, and published 
in the Federal Register (61 FR 31004, June 19, 1996), with an effective 
date of June 20, 1996. That rule amended Secs. 911.311(b) and 
915.306(a)(4)(5) of the rules and regulations in effect under the 
orders. That rule provided a 30-day comment period which ended July 19, 
1996. No comments were received.
    Sections 911.48 and 915.51 of the lime and avocado marketing orders 
provide authority for the establishment of container marking 
requirements. Sections 911.311(b) and 915.306(a)(4)(5) of the rules and 
regulations outline the lot stamp number container marking requirements 
for fresh limes and avocados packed under the orders.
    There are two basic types of inspection in the industry; in-line 
and block. In-line inspection is performed during the packing process, 
prior to palletization and storage. In block inspection, the inspection 
occurs after the pallets have been packed, strapped, and placed in 
storage. Large handling facilities tend to have inspectors on site when 
they are packing. These facilities use in-line inspection which allows 
the containers to be lot stamped prior to being palletized. Smaller 
handling facilities do not run enough fruit to justify the continuous 
presence of an inspector. Therefore, they call for a block inspection 
after a lot is run, palletized and ready to ship. Requiring the 
inspector to lot stamp each container necessitates tearing down all the 
pallets. This results in significant cost and loss of time.
    The committees recommended relaxing the number of containers 
required to be marked with the lot stamp number to assist small 
handlers. This relaxation revises the lot stamping requirements for 
containers that have been palletized prior to inspection. Under this 
change, all exterior, exposed boxes, on all four sides of a pallet, are 
lot stamped, rather than each box. The committees anticipate that this 
recommended relaxation will avoid prohibitive costs to small handlers.
    Less than 25 percent of all lime and avocado shipments are shipped 
by small packing houses using block inspection. Under this revised 
procedure, most of the containers they pack will be lot stamp numbered. 
The center tiers of randomly selected pallets are inspected by the 
Federal-State Inspection Service for all marketing order requirements. 
The committees' recommendation to relax the container marking 
requirement would not lower the number of containers being inspected.
    Several other alternatives were suggested during the public 
meetings. One alternative discussed by the committees was to require 
all containers to continue to be lot stamp numbered. Maintaining the 
requirement for lot stamp numbers to be placed on all containers would 
not address the burden placed on small handlers. That burden includes 
higher handler labor costs, slower handler operations, increased 
handler restrapping costs, as well as increased inspection costs. It 
was the consensus of the committees that the requirement that all 
containers be marked is cost prohibitive as each block-inspected pallet 
needs to be manually pulled apart to enable the lot stamp number to be 
placed on the center tier containers.
    Another alternative suggested was to eliminate the block-inspection 
method and require all handlers to use the in-line inspection method. 
During in-line inspection, containers would be stamped with the lot 
stamp number prior to being stacked on the pallet. This would have a 
serious financial impact on the industry, especially among small 
handlers, due to a large increase in inspection costs. This suggestion 
was unacceptable to the industry as it would be cost prohibitive and 
could force small handlers out of business.
    Section 8(e) of the Act requires that whenever grade, size, quality 
or maturity requirements are in effect for certain commodities under a 
domestic marketing order, including limes and avocados, imports of that 
commodity must meet the same or comparable requirements. This rule 
changes the container marking requirements currently issued under the 
orders. Therefore, no change is necessary in the lime and avocado 
import regulations as a result of this action to relax the lot stamp 
number requirement.
    After consideration of all relevant material presented, the 
information and recommendations submitted by the committees, and other 
information, it is found that finalizing the interim final rule, 
without change, as published in the Federal Register (61 FR 31004, June 
19, 1996) will tend to effectuate the declared policy of the Act.

List of Subjects

7 CFR Part 911

    Marketing agreements, Limes, Reporting and recordkeeping 
requirements.

 7 CFR Part 915

    Avocados, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR parts 911 and 915 
are amended as follows:

PART 911--LIMES GROWN IN FLORIDA

    Accordingly, the interim final rule amending 7 CFR part 911 which 
was published at 61 FR 31004 on June 19, 1996, is adopted as a final 
rule without change.

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

    Accordingly, the interim final rule amending 7 CFR part 915 which 
was published at 61 FR 31004 on June 19, 1996, is adopted as a final 
rule without change.

    Dated: September 9, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-23824 Filed 9-17-96; 8:45 am]
BILLING CODE 3410-02-P