[Federal Register Volume 59, Number 95 (Wednesday, May 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12094]


[[Page Unknown]]

[Federal Register: May 18, 1994]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 944

[Docket No. FV-92-058-FR]

 

Fruits; Import Regulations (Oranges); Reinstatement of Suspended 
Minimum Orange Import Grade Requirement

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule reinstates, with minor revisions, the 
suspended minimum grade requirement for oranges imported into the 
United States. This requirement was temporarily suspended on October 
24, 1991, to provide the United States Trade Representative (USTR) 
adequate time to review contemplated changes in the import 
requirements. This rule is needed so that imported oranges meet the 
same minimum grade requirement as is established for oranges under the 
marketing order covering Texas oranges, consistent with section 8e of 
the amended Agricultural Marketing Agreement Act of 1937.

EFFECTIVE DATE: May 23, 1994.

FOR FURTHER INFORMATION CONTACT: Gary D. Rasmussen, Marketing 
Specialist, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-
6456; telephone: 202-720-5331; or Belinda G. Garza, McAllen Marketing 
Field Office, USDA/AMS, 1313 East Hackberry, McAllen, Texas 78501; 
telephone: 210-682-2833.

SUPPLEMENTARY INFORMATION: This final rule is issued under section 8e 
(7 U.S.C. Section 608e-1) of the Agricultural Marketing Agreement Act 
of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the 
Act. Section 8e of the Act provides that whenever specified 
commodities, including oranges, 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. Section 8e also provides that 
whenever two or more marketing orders regulate the same commodity 
produced in different areas of the United States, the Secretary shall 
determine which area the imported commodity is in most direct 
competition with and apply regulations based on that area to the 
imported commodity. The Secretary has determined that oranges imported 
into the United States are in most direct competition with oranges 
grown in Texas regulated under Marketing Order No. 906, and has found 
that the minimum grade and size requirements for imported oranges 
should be the same as those established for oranges under Marketing 
Order No. 906.
    The 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 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. There are no administrative procedures which 
must be exhausted prior to any judicial challenge to the provisions of 
this rule.
    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. Import regulations issued under 
the Act are based on those established under Federal marketing orders.
    There are about 20 orange importers who will be subject to the 
orange import grade requirement. Small agricultural service firms, 
which include importers, have been defined by the Small Business 
Administration (13 CFR 121.601) as those whose annual receipts are less 
than $3,500,000. A majority of these importers may be classified as 
small entities.
    A proposed rule concerning this reinstatement of the orange import 
grade requirement was issued on February 18, 1994, and published in the 
Federal Register (59 FR 9140, February 25, 1994). That rule provided a 
15-day comment period which ended March 14, 1994. A comment was filed 
by Rick Perry, Commissioner, Texas Department of Agriculture, Austin, 
Texas, favoring the proposed reinstatement of the minimum grade 
requirement for imported oranges, because imported oranges should meet 
the same minimum grade requirement as is applied to Texas oranges.
    A minimum grade requirement of U.S. No. 2 specified in Sec. 944.312 
(7 CFR part 944) for oranges imported into the United States was in 
effect on a continuous basis prior to its suspension on October 24, 
1991 (56 FR 55983, October 31, 1991; 57 FR 2674, January 23, 1992). 
This requirement was suspended to provide the USTR adequate time to 
review contemplated changes in the grade requirement for imported 
oranges reflecting changes made in the minimum grade requirement for 
Texas oranges in Sec. 906.365 (7 CFR part 906) under Marketing Order 
No. 906.
    This final rule amends Sec. 944.312 (7 CFR 944.312; as amended at 
58 FR 69185, December 30, 1993; and corrected at 59 FR 4246, January 
31, 1994) to reinstate a minimum grade requirement of U.S. No. 2 for 
oranges imported into the United States. This minimum grade requirement 
is the same as the minimum grade requirement currently in effect for 
oranges grown in Texas under Marketing Order No. 906, and is the same 
as the grade requirement effective for imported oranges under 
Sec. 944.312 just prior to its suspension on October 24, 1991.
    This final rule also defines the term ``oranges'', to precisely 
identify the fruit covered by this import regulation.
    This final rule also changes the minimum quantity exemption under 
the import regulation to 400 pounds of fruit per day. The minimum 
quantity exemption in the suspended import regulation was ten \7/10\ 
bushel cartons (420 pounds). This change makes the quantity exempted in 
the import regulation comparable to the quantity exempted from handling 
regulations under the marketing order for oranges grown in Texas.
    A minimum size requirement specifying that oranges imported into 
the United States be at least 2\6/16\inches in diameter is currently 
effective under Sec. 944.312, and this requirement remains in effect 
unchanged by this rule.
    According to the Department of Agriculture's Foreign Agricultural 
Service, U.S. fresh orange imports during the 1992/93 season were well 
below the corresponding levels in the 1991/92 season, reflecting record 
fresh-market domestic supplies. U.S. imports of fresh oranges during 
the 1992/93 season (beginning November 1) totaled 23.6 million pounds, 
nearly a third less than in 1991/92. In the five seasons 1987/88-1991/
92 fresh orange imports varied greatly. The late December 1990 freeze 
caused extensive damage to orange crops in California and resulted in 
an unusually large quantity of imports in 1990/91. From 1987/88 through 
1991/92, U.S. imports of fresh oranges ranged from a high of 137.3 
million pounds in the 1990/91 season, to a low of 17.2 million pounds 
in 1988/89, with an average of 53.0 million pounds.
    Fresh U.S. orange imports typically come from six countries, 
including Australia, the Dominican Republic, Mexico, Israel, Jamaica, 
and Spain. In the 1992/93 season, Australia accounted for 10.1 million 
pounds or 42 percent of U.S. fresh orange imports. In comparison, 1991/
92 imports from Australia were 5.5 million pounds or 16 percent of U.S. 
fresh market orange imports. From 1987/88 through 1991/92, Mexico was a 
major source of U.S. fresh orange imports, ranging from a low of 2.2 
million pounds (1988/89), to a high of 56.1 million pounds (1990/91), 
with a five year average of 18.0 million pounds per season.
    In accordance with section 8e of the Act, the USTR has concurred 
with the issuance of this rule.
    Based on the above, the Administrator of the AMS has determined 
that this rule will not have a significant economic impact on a 
substantial number of small entities.
    This final rule reflects the Department's appraisal of the need to 
reinstate the suspended orange import grade requirement and make 
specified changes in the orange import regulation, as hereinafter set 
forth, to effectuate the declared policy of the Act.
    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 rule until 
30 days after publication in the Federal Register because: (1) The 
orange import grade requirement should be reinstated as soon as 
possible, so that imported oranges meet the same grade requirement as 
is effective for fresh shipments of Texas oranges in accordance with 
section 8e of the Act; and (2) the proposed rule provided a 15-day 
comment period, and the one comment received favored reinstatement of 
the grade requirement for imported oranges.

List of Subjects in 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 part 944 is 
amended to read as follows:

PART 944--FRUITS; IMPORT REGULATIONS

    1. The authority citation for 7 CFR part 944 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. Section 944.312 is revised to read as follows:


Sec. 944.312  Orange import regulation.

    (a) Pursuant to section 8e (7 U.S.C. 608e-1) of the Agricultural 
Marketing Agreement Act of 1937, as amended (7 U.S.C 601-674), and part 
944--Fruits; Import Regulations, the importation into the United States 
of any oranges is prohibited unless such oranges grade at least U.S. 
No. 2, and they are at least 2\6/16\ inches in diameter.
    (b) The term oranges is defined as Citrus sinensis, Osbeck.
    (c) The term importation means release from custody of the United 
States Customs Service.
    (d) Terms and tolerances pertaining to grade and size requirements, 
which are defined in the United States Standards for Grades of Oranges 
(Texas and States other than Florida, California, and Arizona) (7 CFR 
51.680-51.714), shall be applicable herein.
    (e) Any person may import up to 400 pounds a day of oranges exempt 
from the requirements specified in this section.
    (f) The Federal or Federal-State Inspection Service, Fruit and 
Vegetable Division, Agricultural Marketing Service, United States 
Department of Agriculture, is designated as the governmental inspection 
service for certifying the grade, size, quality, and maturity of 
oranges imported into the United States. Inspection by the Federal or 
Federal-State Inspection Service with evidence thereof in the form of 
an official inspection certificate, issued by the respective service, 
applicable to the particular shipment of oranges, is required on all 
such imports. The inspection and certification services will be 
available upon application in accordance with the Regulations Governing 
Inspection, Certification and Standards of Fresh Fruits, Vegetables, 
and Other Products (7 CFR part 51), and in accordance with the 
regulation designating inspection services and procedure for obtaining 
inspection and certification (7 CFR 944.400).
    (g) Any oranges which fail to meet the import requirements, and are 
not being imported for purposes of consumption by charitable 
institutions, distribution by relief agencies, or processing into 
products; prior to or after reconditioning may be exported or disposed 
of under the supervision of the Federal or Federal-State Inspection 
Service with the costs of certifying the disposal of such oranges borne 
by the importer.
    (h) The grade, size, quality, and maturity requirements of this 
section shall not be applicable to oranges imported for consumption by 
charitable institutions, distribution by relief agencies, or processing 
into products, but shall be subject to the safeguard provisions 
contained in Sec. 944.350.
    (i) The Secretary has determined that oranges imported into the 
United States are in most direct competition with oranges grown in 
Texas regulated under Marketing Order No. 906.

    Dated: May 12, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-12094 Filed 5-17-94; 8:45 am]
BILLING CODE 3410-02-P