[Federal Register Volume 63, Number 100 (Tuesday, May 26, 1998)]
[Rules and Regulations]
[Pages 28475-28480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13881]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 63, No. 100 / Tuesday, May 26, 1998 / Rules
and Regulations
[[Page 28475]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 925 and 944
[Docket No. FV98-925-3 IFR]
Grapes Grown in a Designated Area of Southeastern California and
Imported Table Grapes; Revision in Minimum Grade, Container, and Pack
Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule revises minimum grade requirements for grapes grown
in southeastern California and for grapes imported into the United
States. It also revises container and pack requirements currently
prescribed for California grapes. This rule allows California grape
handlers to market consumer packages of grapes more economically by
increasing the range of allowable bunch sizes for a portion of the 1998
season. Master containers of consumer grape packages could be marketed
if the grape clusters/bunches in the packages consist of at least 2
berry clusters and the clusters/bunches are not greater than 19 ounces
in weight. The increased bunch size range also applies to imported
grapes. This action is in the interest of handlers, producers,
importers, and consumers.
DATES: Effective June 1, 1998; comments must be received by June 25,
1998 and will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk, Fruit
and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456,
Washington, DC 20090-6456; Fax: (202) 205-6632. 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: Rose M. Aguayo, Marketing Specialist,
California Marketing Field Office, Marketing Order Administration
Branch, F&V, AMS, USDA, 2202 Monterey Street, suite 102B, Fresno,
California 93721; telephone: (209) 487-5901, Fax: (209) 487-5906; or
Anne M. Dec, Team Leader, Marketing Order Administration Branch, F&V,
AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 20090-6456;
telephone: (202) 720-2491, Fax: (202) 205-6632. Small businesses may
request information on compliance with this regulation by contacting
Jay Guerber, Marketing Order Administration Branch, F&V, AMS, USDA,
room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone:
(202) 720-2491, Fax: (202) 205-6632.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 925 (7 CFR Part 925), regulating the handling of grapes grown in a
designated area of southeastern California, 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
provides that whenever certain specified commodities, including table
grapes, are regulated under a Federal marketing order, imports of these
commodities into the United States are prohibited unless they meet the
same or comparable grade, size, quality, or maturity requirements as
those in effect for the domestically produced commodities.
The Department of Agriculture (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 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 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.
This rule increases the range of allowable sizes of grape bunches
that California handlers can pack in certain containers during the
period June 1, 1998, through August 15, 1998. Master containers of
consumer grape packages can be marketed if the grape clusters/bunches
in the packages consist of at least 2 berry clusters and the clusters/
bunches are not greater than 19 ounces in weight. The increased bunch
size range also applies to imported grapes, but no container
specifications apply. The changes in domestic requirements were
recommended by the California Desert Grape Administrative Committee
(Committee), the agency responsible for local administration of the
order.
Under the terms of the order, fresh market shipments of grapes
grown in southeastern California are required to be inspected and meet
grade, size, maturity, pack, and container requirements. Current
requirements include minimum grade and net weight requirements. Grapes
must also be packed in authorized containers, and such containers must
be marked with the minimum net weight of the grapes contained therein,
the variety of the grapes, the name of the shipper, and the lot stamp
number corresponding to the lot inspection conducted by an authorized
inspector.
Section 925.52(a)(2) of the grape order provides authority to limit
the handling
[[Page 28476]]
of any grade, size, quality, maturity, or pack of grapes for different
varieties, or any combination of the foregoing during any period or
periods.
Section 925.304(a) of the order's administrative rules and
regulations requires grapes to meet the minimum grade requirements of
U.S. No. 1 Table, or U.S. No. 1 Institutional, or to meet all the
requirements of U.S. No. 1 Institutional, except that a tolerance of 33
percent is provided for off-size bunches. Grapes meeting U.S. No. 1
Institutional requirements are required to be marked ``U.S. No. 1
Institutional.'' Grapes meeting the modified U.S. No. 1 Institutional
requirements may be marked ``DGAC No. 1 Institutional.'' The
requirements for the U.S. No. 1 Table and U.S. No. 1 Institutional
grades are set forth in the United States Standards for Grades of Table
Grapes (European or Vinifera Type) (7 CFR 51.880 through 51.914)
(Standards).
Section 925.52(a)(4) of the order provides authority to regulate
the size, capacity, weight, dimensions, markings, materials, and pack
of containers which may be used in the handling of grapes.
Section 925.304(b)(1) of the order's administrative rules and
regulations requires grapes to be packed in new and clean boxes which
meet the requirements of sections 1380.14, 1380.19, 1436.37, and
1436.38 of Title 3: California Code of Regulations (CCR). That section
also authorizes nine containers that can be used for domestic and
export shipments and specifies dimensions for each such container. An
additional container, defined in terms of a net weight of 5 kilograms,
is authorized for export shipments only. All 10 of the authorized
containers may be used for export shipments. Only the first nine can be
used for domestic shipments.
Finally, Sec. 925.304(b)(1) authorizes the Committee to approve
other containers for experimental or research purposes.
Section 925.304(b)(2) of the order's administrative rules and
regulations provides that grapes in any containers weigh at least 20
pounds based on the average net weight of grapes in a representative
sample of containers. An exception is provided for grapes packed in
experimental containers, or packed in bags or wrapped in plastic or
paper. Containers of grapes packed in bags or wrapped in plastic or
paper prior to being placed in these containers must meet a minimum net
weight requirement of 18 pounds. There are no weight requirements
specified for experimental containers.
The Committee met on March 24, 1998, and unanimously recommended
modifying Sec. 925.304 of the order's administrative rules and
regulations to make the following changes:
(1) Revise the minimum grade requirement for the period June 1,
1998, through August 15, 1998, to allow a pilot test for the marketing
of grapes which meet all the requirements of U.S. No. 1 Institutional
except for the weight of clusters/bunches. The revision allows
clusters/bunches as small as a 2 berry cluster and as large as 19
ounces in weight. Grapes meeting these quality requirements are to be
marked ``DGAC Consumer No. 1 Institutional'' but cannot be marked
``Institutional Pack.''
(2) Authorize an experimental master container, containing
individual consumer packages of grapes which weigh 1\1/2\ pounds or
less, net weight, for use during the pilot test period of June 1, 1998,
to August 15, 1998. Grapes meeting the ``DGAC Consumer No. 1
Institutional'' requirements must be packed in this container and this
master container can only be used for packing the ``DGAC Consumer No. 1
Institutional'' grade.
(3) Update or remove certain obsolete references appearing in the
regulation.
Revision in Minimum Grade Requirements
Until 1993, the minimum grade requirement under the order was U.S.
No. 1 Table. One requirement of that grade is that grape bunches weigh
at least 4 ounces.
In 1991, a new U.S. No. 1 Institutional grade was added to the
Standards. This grade--used primarily for sales to restaurants and
other food service firms--provides for grape lots which have very small
bunches. At the request of the table grape industry, this grade was
added to meet market demand for individual consumer sized servings of
grapes. The Standards were further revised in 1996 to lower the minimum
bunch size to a two berry cluster and specify a separate 4 percent
tolerance for off-size bunches.
The minimum grade requirements under the order were changed in 1993
to allow California grape handlers to pack the newly established U.S.
No. 1 Institutional grade. Because handlers experienced difficulties in
packing this grade, these requirements were further revised in 1994 to
provide a tolerance of 33 percent for off-size bunches. This modified
U.S. No. 1 Institutional grade is referred to as DGAC No. 1
Institutional.
Currently, during the period April 20 through August 15 each year,
California grape handlers can ship grapes meeting at least U.S. No. 1
Table, U.S. No. 1 Institutional, or DGAC No. 1 Institutional.
The requirements of the U.S. No. 1 Institutional are essentially
the same as those of the U.S. No. 1 Table grade, with three major
exceptions. The first difference relates to bunch size. Under the U.S.
No. 1 Table grade, there is a minimum bunch size requirement of 4
ounces and no maximum bunch size. Under the U.S. No. 1 Institutional
grade, grapes are to consist of at least a two berry cluster ranging to
clusters and/or bunches of grapes not greater than five ounces in
weight. A cluster is two or more berries sharing a common point of
attachment.
The second difference is that at least 95 percent of the containers
in a lot of grapes grading U.S. No. 1 Institutional must be legibly
marked ``Institutional Pack.'' There are no marking requirements under
the U.S. No. 1 Table grade.
The third difference relates to the tolerances for off-size
bunches. For grapes grading U.S. No. 1 Table, an 8 percent tolerance is
established for all grade requirements, including off-size bunches. The
U.S. No. 1 Institutional grade has a separate tolerance of 4 percent
for off-size clusters/bunches and an 8 percent tolerance for the
remaining grade requirements.
Requirements for the DGAC No. 1 Institutional are the same as for
the U.S. No. 1 Institutional, except that the tolerance for off-size
bunches is 33 percent. Because grapes meeting these requirements do not
meet the U.S. No. 1 Institutional grade requirements, they cannot be
marked ``Institutional Pack.'' They may, however, be marked ``DGAC No.
1 Institutional.''
Recently, there has been interest in packing grapes in individual
consumer packages known as ``punits'' or ``clamshells.'' These
containers, used most commonly to pack strawberries, are made of a
clear, hard rigid plastic and typically hold a half pound or a pound of
fruit. Some retailers prefer these containers because they are of the
same net weight, and can be scanned at check-out. This is particularly
convenient for retailers that do not have facilities for weighing
produce, such as convenience stores and fast food outlets. Some
consumers also prefer the convenience of prepackaged individual
portions of fruit.
To meet changing market requirements, California grape handlers
would like to be able to pack these consumer packages. Current bunch
size requirements make it difficult however. Grape bunches normally
range in weight from \1/4\ pound to 3 pounds. Thus, portions of bunches
have to be used to fill the new packages to the weights desired by
buyers. Handlers have
[[Page 28477]]
determined that increasing the range of permissible bunch sizes to
allow for clusters/bunches of two berries to 19 ounces will provide
handlers the flexibility needed to pack grapes in the desired consumer
containers.
This rule revises Sec. 925.304(a) of the order's rules and
regulations to allow handlers to ship a new grade of grapes to be known
as DGAC Consumer No. 1 Institutional. The name recognizes that such
grapes will be packed in consumer packages and that the grapes are not
packed to the minimum requirements of the U.S. No. 1 Table grade.
Grapes meeting this requirement must meet the requirements of the U.S.
No. 1 Institutional grade, except for the cluster/bunch size
requirements. Specifically, these modified requirements allow shipments
with clusters/bunches ranging from 2 berry clusters to clusters/bunches
of grapes up to 19 ounces in weight.
Container Requirements
The Committee recommended that grapes packed in accordance with the
new DGAC Consumer No. 1 Institutional requirements be packed in a
certain way. These grapes must be packed in individual consumer
packages. The consumer packages must then be packed in a master
container.
Typically, the individual consumer packages hold either \1/2\ or 1
pound of fruit. To allow for normal shrinkage during handling, handlers
generally pack a slightly greater weight than is desired at retail.
Section 925.304(b) is revised to provide that DGAC Consumer No. 1
Institutional grade grapes be packed in master containers containing
individual consumer packages weighing 1\1/2\ pounds or less.
Additionally, these master containers are required to be marked
``DGAC Consumer No. 1 Institutional'' to accurately reflect their
contents. The individual consumer packages do not need to be so marked.
Other container marking requirements appearing in the regulation apply
to the master containers as well.
The master containers used for these grapes will typically hold 10
consumer packages weighing 1 pound each or 20 packages weighing \1/2\
pound each. Thus, these containers are exempt from the net weight
requirements of 18 or 20 pounds specified in Sec. 925.304(b)(2).
Application to Imports
Section 8e of the Act specifies that whenever certain commodities,
like grapes, are regulated under a Federal order, imports of those
commodities must meet the same or comparable grade, size, quality, and
maturity requirements as those in effect for the domestically produced
commodity. Pack and container requirements are not authorized by
section 8e. Thus, the revised grade requirements implemented by this
rule apply to imported grapes; none of the container or container
marking requirements apply, however. If desired, importers may label
containers of grapes meeting the modified U.S. No. 1 Institutional
requirements as ``DGAC Consumer No. 1 Institutional.'' Specifically,
this rule modifies language in Sec. 944.503(a)(1) of the Table Grape
Import Regulation 4 for fresh grapes imported into the United States.
Clarification/Removal of Obsolete Language
This rule removes language in the introductory text of Sec. 925.304
by removing a proviso that applies to the 1987 season and is no longer
necessary.
This rule makes several other corrections in both the order's
administrative rules and regulations and the import regulation.
Specifically, the tolerance percentage of ``8 percent'' is changed to
``4 percent'' in Secs. 925.304(a) of the order's administrative rules
and regulations and in 944.503(a)(1) of the import regulation. This
corrects those sections to accurately specify the current tolerance for
off-size bunches in the U.S. No. 1 Institutional grade. This rule
corrects a reference to the Standards from section number ``51.913'' to
section number ``51.914'' in Secs. 925.304(a) of the order and in
944.503(a)(1) of the import regulation; and changes a California
Department of Food and Agriculture reference from ``California
Administrative Code (Title 3)'' to ``Title 3: California Code of
Regulations'' in paragraph (a)(1)(ii) of Sec. 944.503 of the import
regulation.
Initial Regulatory Flexibility Analysis
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. Accordingly, AMS has prepared this initial regulatory
flexibility analysis.
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 27 handlers of California grapes who are
subject to regulation under the order and approximately 80 grape
producers in the production area. In addition, there are approximately
127 importers of grapes. 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 have been defined as those having annual receipts of less
than $500,000. Ten of the 27 handlers subject to regulation have annual
grape sales of at least $5,000,000, excluding receipts from any other
sources. In addition, 70 of the 80 producers subject to regulation have
annual sales of at least $500,000, and the remaining 10 producers have
annual sales less than $500,000, excluding receipts from any other
sources. Therefore, a majority of handlers and a minority of producers
are classified as small entities. The average importer receives $2.8
million in grape revenue, excluding receipts from other sources.
Therefore, we believe that the majority of these importers are small
entities.
This rule increases the range of allowable sizes of grape bunches
that California handlers can pack in certain containers during the
period June 1, 1998, through August 15, 1998. Master containers of
consumer grape packages can be marketed if the grape clusters/bunches
in the packages consist of at least 2 berry clusters and the clusters/
bunches are not greater than 19 ounces in weight. The increased bunch
size range also applies to imported grapes, but no container
specifications apply. The changes in domestic requirements were
recommended by the California Desert Grape Administrative Committee
(Committee), the agency responsible for local administration of the
order.
Under the terms of the order, fresh market shipments of grapes
grown in southeastern California are required to be inspected and meet
grade, size, maturity, pack, and container requirements. Current
requirements include minimum grade and net weight requirements. Grapes
must also be packed in authorized containers, and such containers must
be marked with the minimum net weight of the grapes contained therein,
the variety of the grapes, the name of the shipper, and the lot stamp
number corresponding to the lot inspection conducted by an authorized
inspector.
Section 925.52(a)(2) of the grape order provides authority to limit
the handling
[[Page 28478]]
of any grade, size, quality, maturity, or pack of grapes for different
varieties, or any combination of the foregoing during any period or
periods.
Section 925.304(a) of the order's administrative rules and
regulations requires grapes to meet the minimum grade requirements of
U.S. No. 1 Table, or U. S. No. 1 Institutional, or to meet all the
requirements of U.S. No. 1 Institutional, except that a tolerance of 33
percent is provided for off-size bunches. Grapes meeting U.S. No. 1
Institutional requirements are required to be marked ``U.S. No. 1
Institutional.'' Grapes meeting the modified U.S. No. 1 Institutional
requirements may be marked ``DGAC No. 1 Institutional.'' The
requirements for the U.S. No. 1 Table and U.S. No. 1 Institutional
grades are set forth in the United States Standards for Grades of Table
Grapes (European or Vinifera Type) (7 CFR 51.880 through 51.914)
(Standards).
Section 925.52(a)(4) of the order provides authority to regulate
the size, capacity, weight, dimensions, markings, materials, and pack
of containers which may be used in the handling of grapes.
Section 925.304(b)(1) of the order's administrative rules and
regulations requires grapes to be packed in new and clean boxes which
meet the requirements of sections 1380.14, 1380.19, 1436.37, and
1436.38 of Title 3: California Code of Regulations (CCR). That section
also authorizes nine containers that can be used for domestic and
export shipments, and specifies dimensions for each such container. An
additional container, defined in terms of a net weight of 5 kilograms,
is authorized for export shipments only. All 10 authorized containers
may be used for export shipments. Only the first nine can be used for
domestic shipments.
Finally, Sec. 925.304(b)(1) authorizes the Committee to approve
other containers for experimental or research purposes.
Section 925.304(b)(2) of the order's administrative rules and
regulations provides that grapes in any containers weigh at least 20
pounds based on the average net weight of grapes in a representative
sample of containers. An exception is provided for grapes packed in
experimental containers, or packed in bags or wrapped in plastic or
paper. Containers of grapes packed in bags or wrapped in plastic or
paper prior to being placed in these containers must meet a minimum net
weight requirement of 18 pounds.
There are no weight requirements specified for experimental
containers.
The Committee met on March 24, 1998, and unanimously recommended
modifying Sec. 925.304 of the order's administrative rules and
regulations to make the following changes:
(1) Revise the minimum grade requirement for the period June 1,
1998, through August 15, 1998, to allow a pilot test for the marketing
of grapes which meet all the requirements of U.S. No. 1 Institutional
except for the weight of clusters/bunches. The revision allows
clusters/bunches as small as a 2 berry cluster and as large as 19
ounces in weight. Grapes meeting these quality requirements are to be
marked ``DGAC Consumer No. 1 Institutional'' but cannot be marked
``Institutional Pack.''
(2) Authorize an experimental master container, containing
individual consumer packages of grapes which weigh 1\1/2\ pounds or
less, net weight, for use during the pilot test period of June 1, 1998,
to August 15, 1998. Grapes meeting the ``DGAC Consumer No. 1
Institutional'' requirements must be packed in this container and this
master container can only be used for packing the ``DGAC Consumer No. 1
Institutional'' grade.
Currently, during the period April 20 through August 15 each year,
California grape handlers can ship grapes meeting at least U.S. No. 1
Table, U.S. No. 1 Institutional, or DGAC No. 1 Institutional.
The requirements of the U.S. No. 1 Institutional are essentially
the same as those of the U.S. No. 1 Table grade, with three major
exceptions. The first difference relates to bunch size. Under the U.S.
No. 1 Table grade, there is a minimum bunch size requirement of 4
ounces and no maximum bunch size. Under the U.S. No. 1 Institutional
grade, grapes are to consist of at least a two berry cluster ranging to
clusters and/or bunches of grapes not greater than five ounces in
weight. A cluster is two or more berries sharing a common point of
attachment.
The second difference is that at least 95 percent of the containers
in a lot of grapes grading U.S. No. 1 Institutional must be legibly
marked ``Institutional Pack.'' There are no marking requirements under
the U.S. No. 1 Table grade.
The third difference relates to the tolerances for off-size
bunches. For grapes grading U.S. No. 1 Table, an 8 percent tolerance is
established for all grade requirements, including off-size bunches. The
U.S. No. 1 Institutional grade has a separate tolerance of 4 percent
for off-size clusters/bunches and an 8 percent tolerance for the
remaining grade requirements.
Requirements for the DGAC No. 1 Institutional are the same as for
the U.S. No. 1 Institutional, except that the tolerance for off-size
bunches is 33 percent. Because grapes meeting these requirements do not
meet the U.S. No. 1 Institutional grade requirements, they cannot be
marked ``Institutional Pack.'' They may, however, be marked ``DGAC No.
1 Institutional.''
Recently, there has been interest in packing grapes in individual
consumer packages known as ``punits'' or ``clamshells.'' These
containers, used most commonly to pack strawberries, are made of a
clear, hard rigid plastic and typically hold a half pound or a pound of
fruit. Some retailers prefer these containers because they are of the
same net weight, and can be scanned at check-out. This is particularly
convenient for retailers that do not have facilities for weighing
produce, such as convenience stores and fast food outlets. Some
consumers also prefer the convenience of prepackaged individual
portions of fruit.
To meet changing market requirements, California grape handlers
would like to be able to pack these consumer packages. Current bunch
size requirements make it difficult however. Grape bunches normally
range in weight from 1/4 pound to 3 pounds. Thus, portions of bunches
have to be used to fill the new packages to the weights desired by
buyers. Handlers have determined that increasing the range of
permissible bunch sizes to allow for clusters/bunches of two berries to
19 ounces will provide handlers the flexibility needed to pack grapes
in the desired consumer containers.
This rule revises Sec. 925.304(a) of the order's rules and
regulations to allow handlers to ship a new grade of grapes to be known
as DGAC Consumer No. 1 Institutional. The name recognizes that such
grapes will be packed in consumer packages and that the grapes are not
packed to the minimum requirements of the U.S. No. 1 Table grade.
Grapes meeting this requirement must meet the requirements of the U.S.
No. 1 Institutional grade, except for the cluster/bunch size
requirements. Specifically, these modified requirements allow shipments
with clusters/bunches ranging from 2 berry clusters to clusters/bunches
of grapes up to 19 ounces in weight.
The Committee recommended that grapes packed in accordance with the
new DGAC Consumer No. 1 Institutional requirements be packed in a
certain way. These grapes must be packed in individual consumer
packages. The consumer packages must then be packed in a master
container.
Typically, the individual consumer packages hold either \1/2\ or 1
pound of fruit. To allow for normal shrinkage during handling, handlers
generally
[[Page 28479]]
pack a slightly greater weight than is desired at retail. Section
925.304(b) is revised to provide that DGAC Consumer No. 1 Institutional
grade grapes be packed in master containers containing individual
consumer packages weighing 1\1/2\ pounds or less.
Additionally, these master containers are required to be marked
``DGAC Consumer No. 1 Institutional'' to accurately reflect their
contents. The individual consumer packages do not need to be so marked.
Other container marking requirements appearing in the regulation apply
to the master containers as well.
The master containers used for these grapes will typically hold 10
consumer packages weighing 1 pound each or 20 packages weighing \1/2\
pound each. Thus, these containers are exempt from the net weight
requirements of 18 or 20 pounds specified in Sec. 925.304(b)(2).
Section 8e of the Act specifies that whenever certain commodities,
like grapes, are regulated under a Federal order, imports of those
commodities must meet the same or comparable grade, size, quality, and
maturity requirements as those in effect for the domestically produced
commodity. Pack and container requirements are not authorized by
section 8e. Thus, the revised grade requirements implemented by this
rule apply to imported grapes; none of the container or container
marking requirements apply, however. If desired, importers may label
containers of grapes meeting the modified U.S. No. 1 Institutional
requirements as ``DGAC Consumer No. 1 Institutional.'' Specifically,
this rule modifies language in Sec. 944.503(a)(1) of the Table Grape
Import Regulation 4 for fresh grapes imported into the United States.
This regulation provides handlers and importers more marketing
flexibility, is estimated to result in increased shipments of consumer-
sized grape packs, and is expected to have positive impact on
California grape handlers and importers of grapes. The changes address
the marketing and shipping needs of the grape industry, and are in the
interest of handlers, producers, importers, and consumers.
During the last several seasons, Mexico has been the largest
exporter of grapes to the United States during the June 1 through
August 15 period. Chile and Italy have exported small quantities of
grapes to the U.S. during this same period. Chile is the dominant
exporting country from December through May each year.
During the pilot test period of June 1, 1998, through August 15,
1998, imports are estimated to total 5.5 million lugs from Mexico, 33
thousand lugs from Chile, and approximately 4 thousand lugs from Italy.
These estimates are based upon lug weights of 18 pounds.
According to Department inspection officials, minimal quantities of
grapes meeting the institutional grades have been imported since the
``Institutional Pack'' was implemented. Based on historical data, it is
estimated that approximately .5 percent to 1 percent of the imported
lugs will meet the requirements of either the ``U.S. No. 1
Institutional'' or the ``DGAC No. 1 Institutional'' grades. It is
further estimated that less than 1 percent of the imported lugs will
meet the requirements of the ``DGAC Consumer No. 1 Institutional''
grade. The majority of imported grapes meet the higher grade
requirements of U.S. No. 1 Table, U.S. Fancy Table, or U.S. Extra Fancy
Table.
The Committee estimates the 1998 domestic crop will be
approximately 8 million lugs. Domestic handlers in southeastern
California, regulated under the order, are expected to ship
approximately 6.2 million lugs during the test period. It is estimated
that approximately .5 percent (31,000 lugs) to 1 percent (62,000 lugs)
of the crop will be packed as U.S. No. 1 Institutional or DGAC No. 1
Institutional and that less than 1 percent (62,000 lugs) of the crop
will be packed as ``DGAC Consumer No. 1 Institutional'' during the test
period. The estimates for the DGAC Consumer No. 1 Institutional are
based upon a lug weight of 10 pounds. The Committee estimated that
handlers will receive approximately $0.60 to $1.00 per pound for a
total estimated value of $372,000 to $620,000 for this new individual
consumer pack. Handlers will receive approximately $0.10 more for the
new consumer packages than for bagged grapes. Consumers will benefit by
being able to purchase grapes in preferred containers.
The Committee requested that this rule be effective by June 1,
1998. The California grape shipping season is expected to begin
shortly, and continue until August 15, 1998. Therefore, an effective
date of June 1 will allow handlers and importers approximately 10 weeks
to test the market.
At the meeting, the Committee discussed the potential impact of
this rule and determined that this action will not require any changes
in grape handling practices. Those who choose to pack to this new grade
could achieve additional sales which will be a benefit to the grape
industry as a whole.
The benefits of this rule are not expected to be disproportionately
greater or smaller for small handlers or producers than for larger
entities.
The Committee discussed alternatives to this revision, including
not having a pilot test, but determined that handlers, producers,
importers and consumers should benefit from this pilot test.
The Committee also discussed adding a percentage tolerance for off-
size bunches of 33 percent similar to the additional percentage
tolerance allowed for the DGAC No. 1 Institutional grade, but
determined that the 4 percent tolerance, as contained in the Standards,
was adequate to facilitate packaging of the ``punits'' or
``clamshells''.
This action will not impose any additional reporting or
recordkeeping requirements on either small or large grape handlers or
importers. As with all Federal marketing order programs, reports and
forms are periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. In addition, the
Department has not identified any relevant Federal rules that
duplicate, overlap or conflict with this rule.
Further, the Committee's meeting was widely publicized throughout
the grape industry and all interested persons were invited to attend
the meeting and participate in Committee deliberations on all issues.
Like all Committee meetings, the March 24, 1998, meeting was a public
meeting and all entities, both large and small, were able to express
their views on this issue. The Committee itself is composed of 12
members: 8 are handlers and producers, 1 is a producer only, and 2 are
handlers only. The twelfth Committee member is the public member. In
addition, the embassies of Mexico, Chile, and Italy were notified of
the anticipated action. Finally, interested persons are invited to
submit information on the regulatory and informational impacts of this
action on small businesses.
After consideration of all relevant material presented, including
the Committee's recommendation, and other available information, it is
found that this interim final rule, as hereinafter set forth, will tend
to effectuate the declared policy of the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined, upon
good cause, that it is impracticable, unnecessary and contrary to the
public interest to give preliminary notice prior to putting this rule
into effect, and that good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register because: (1) This action revises minimum grade
requirements currently in effect for grapes grown in designated
[[Page 28480]]
areas of southeastern California and for grapes imported into the
United States and offers handlers and importers more marketing
flexibility; (2) California grape handlers are aware of this action
which was unanimously recommended by the Committee at a public meeting.
In addition, the embassies of Mexico, Chile, and Italy were notified of
the anticipated action; (3) no changes in packing procedures are
required by this rule for either California handlers or importers, and
they will need no additional time to comply with the revised
requirements; (4) California grape shipments are expected to begin
soon, and this rule needs to be in effect by June 1, 1998, so handlers
can test market acceptance for the remainder of the season; and (5)
this rule provides a 30-day comment period and any comments received
will be considered prior to finalization of this rule. For the same
reasons, a 30-day comment period is deemed appropriate to provide for
comments from interested persons. Further, the end of the 1998 season
is August 15.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this rule.
List of Subjects
7 CFR Part 925
Grapes, Marketing agreements, Reporting and recordkeeping
requirements.
7 CFR Part 944
Avocados, Food grades and standards, Grapefruit, Grapes, Imports,
Kiwifruit, Limes, Olives, Oranges.
For the reasons set forth in the preamble, 7 CFR parts 925 and 944
are amended as follows:
1. The authority citation for 7 CFR parts 925 and 944 continues to
read as follows:
Authority: 7 U.S.C. 601-674.
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
2. Section 925.304 is amended by revising the introductory text,
paragraph (a) introductory text, paragraph (b)(1)(iii) and the first
sentence of paragraph (b)(2) to read as follows:
Sec. 925.304 California Desert Grape Regulation 6.
During the period April 20 through August 15 each year, no person
shall pack or repack any variety of grapes except Emperor, Almeria,
Calmeria, and Ribier varieties, on any Saturday, Sunday, Memorial Day,
or the observed Independence Day holiday, unless approved in accordance
with paragraph (e) of this section, nor handle any variety of grapes
except Emperor, Calmeria, Almeria, and Ribier varieties, unless such
grapes meet the requirements specified in this section.
(a) Grade, size, and maturity. Except as provided in paragraphs
(a)(1) and (a)(2) of this section, such grapes shall meet the minimum
grade and size requirements of U.S. No. 1 Table, as set forth in the
United States Standards for Grades of Table Grapes (European or
Vinifera Type 7 CFR 51.880 through 51.914), or shall meet all the
requirements of U.S. No. 1 Institutional with the exception of the
tolerance percentage for bunch size. Such tolerance shall be 33 percent
instead of 4 percent as is required to meet U.S. No. 1 Institutional
grade. Grapes meeting these quality requirements may be marked ``DGAC
No. 1 Institutional'' but shall not be marked ``Institutional Pack.''
In addition, during the period June 1, 1998, through August 15, 1998,
grapes may be handled that meet all the requirements of U.S. No. 1
Institutional, except that clusters/bunches must consist of at least a
2 berry cluster ranging to clusters and/or bunches of grapes not
greater than 19 ounces in weight. Such grapes must be marked ``DGAC
Consumer No. 1 Institutional'' and meet the container requirements in
paragraph (b)(1)(iii) of this section.
* * * * *
(b) * * *
(1) * * *
(iii) Such other types and sizes of containers as may be approved
by the Committee for experimental or research purposes: Provided, That
for the period June 1, 1998, through August 15, 1998, master containers
may be used if they are packed with individual consumer packs of grapes
that weigh 1\1/2\ pounds or less, net weight, and meet the requirements
of the ``DGAC Consumer No. 1 Institutional.'' Provided further, That
grapes meeting the requirements of ``DGAC Consumer No. 1
Institutional'' shall be packed only in this container, and this master
container shall be marked ``DGAC Consumer No. 1 Institutional.''
(2) The minimum net weight of grapes in any such containers, except
for containers containing grapes packed in sawdust, cork, excelsior or
similar packing material, or packed in bags or wrapped in plastic or
paper, and containers authorized in paragraph (b)(1)(iii) of this
section, shall be 20 pounds based on the average net weight of grapes
in a representative sample of containers. * * *
* * * * *
PART 944--FRUITS; IMPORT REQUIREMENTS
3. In Sec. 944.503, paragraphs (a)(1) introductory text and
(a)(1)(ii) are revised to read as follows:
Sec. 944.503 Table Grape Import Regulation 4.
(a)(1) Pursuant to section 8e of the Act and Part 944--Fruits,
Import Regulations, the importation into the United States of any
variety of Vinifera species table grapes, except Emperor, Calmeria,
Almeria, and Ribier varieties, is prohibited unless such grapes meet
the minimum grade and size requirements specified in 7 CFR 51.884 for
U.S. No. 1 Table, as set forth in the United States Standards for
Grades of Table Grapes (European or Vinifera Type, 7 CFR 51.880 through
51.914), or shall meet all the requirements of U.S. No. 1 Institutional
with the exception of the tolerance for bunch size. Such tolerance
shall be 33 percent instead of 4 percent as is required to meet U.S.
No. 1 Institutional grade. Grapes meeting these quality requirements
shall not be marked ``Institutional Pack'', but may be marked ``DGAC
No. 1 Institutional.'' In addition, during the period June 1, 1998,
through August 15, 1998, grapes may be imported if they meet all the
requirements of U.S. No. 1 Institutional, except that clusters/bunches
must consist of at least a 2 berry cluster ranging to clusters and/or
bunches of grapes not greater than 19 ounces (0.532 kilograms) in
weight. Such grapes may be marked ``DGAC Consumer No. 1 Institutional''
but shall not be marked ``Institutional Pack.''
* * * * *
(ii) Grapes of the Flame Seedless variety shall meet the minimum
berry size requirement of ten-sixteenths of an inch (1.5875
centimeters) and shall be considered mature if the juice contains not
less than 15 percent soluble solids and the soluble solids are equal to
or in excess of 20 parts to every part acid contained in the juice in
accordance with applicable sampling and testing procedures specified in
sections 1463.3, 1436.5, 1436.6, 1436.7, 1436.12, and 1436.17 of
Article 25 of Title 3: California Code of Regulations (CCR).
* * * * *
Dated: May 19, 1998.
Robert C. Keeny,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-13881 Filed 5-22-98; 8:45 am]
BILLING CODE 3410-02-P
