[Federal Register Volume 59, Number 100 (Wednesday, May 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12591]


  Federal Register / Vol. 59, No. 100 / Wednesday, May 25, 1994 /
  
[[Page Unknown]]

[Federal Register: May 25, 1994]


                                                   VOL. 59, NO. 100

                                            Wednesday, May 25, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV93-905-51FR]

 

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Revision of Special Purpose Shipment Exemption Provisions for Organic 
Citrus Fruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule invites comments on the revision of 
the administrative rules and regulations of the marketing order for 
Florida citrus. This rule redefines the term ``Special Purpose 
Shipper'' to mean those persons who handle citrus fruit which is 
certified as organically grown under Florida law, and requires such 
persons to certify that they will limit shipments of such fruit to 
outlets handling organically grown fruit. This rule more precisely 
defines organically grown Florida citrus fruit, and may increase the 
market for organic shipments. This rule was unanimously recommended by 
the Citrus Administrative Committee (committee), the agency responsible 
for local administration of the marketing order.

DATES: Effective on May 25, 1994. Comments which are received by June 
24, 1994 will be considered prior to issuance of any final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. Comments must 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, Fax: (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 made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours.

FOR FURTHER INFORMATION CONTACT: Christian D. Nissen, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2523-S, Washington, DC 20090-6456; telephone: 202-720-
5127; or William G. Pimental, Southeast Marketing Field Office, USDA/
AMS, P.O. Box 2276, Winter Haven, Florida 33883; telephone: 813-299-
4770.

SUPPLEMENTARY INFORMATION: This interim final rule is issued under 
Marketing Agreement and Marketing Order No. 905 (7 CFR part 905) 
regulating the handling of oranges, grapefruit, tangerines, and 
tangelos grown in Florida, hereinafter referred to as the order. This 
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.
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This interim final rule has been reviewed under Executive Order 
12778, Civil Justice Reform. This interim final rule is not intended to 
have retroactive effect. This interim 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 requesting 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 a bill in equity is filed 
not later than 20 days after the date of the entry of the ruling.
    Pursuant to the 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.
    There are about 100 Florida citrus handlers subject to regulation 
under the marketing order covering oranges, grapefruit, tangerines, and 
tangelos grown in Florida, and about 11,000 growers of these citrus 
fruits in Florida. 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 growers 
are defined as those whose annual receipts are less than $500,000. A 
minority of these handlers and a majority of the growers may be 
classified as small entities.
    The marketing order for Florida citrus provides for the 
establishment of minimum grade and size requirements. The minimum grade 
and size requirements are designed to provide fresh markets with fruit 
of acceptable quality, thereby maintaining consumer confidence for 
fresh Florida citrus. This helps create buyer confidence and 
contributes to stable marketing conditions. This is in the interest of 
producers, packers, and consumers, and is designed to increase returns 
to Florida citrus growers.
    The cultural practices of producers of organically grown citrus 
differ from normal industry practices. Because of these differences, 
organically grown fruit is usually required to meet a different grade 
standard under the marketing order. This grade standard pertains only 
to the external characteristics of the fruit, not the internal quality.
    The different grade standard is needed to facilitate the marketing 
of organic citrus. There are indications that organically grown citrus, 
from a marketing standpoint, are a different commodity than 
conventionally grown citrus. Organic citrus generally has higher 
external damage. Organic fruit for the most part is marketed 
differently, is not mixed with non-organic fruit, appeals only to 
certain consumers, and is in many respects, a specialized commodity.
    This action invites comments on changes to the administrative rules 
and regulations prescribed under the Florida citrus marketing order. 
This rule more precisely defines organic fruit, and the type of market 
outlets which organically grown fruit may be sold in, free from certain 
requirements imposed under the order. These changes were unanimously 
recommended by the committee at its November 16, 1993 meeting.
    Sections 905.146, 905.147, and 905.148 of the regulations provide 
terms and conditions under which shippers may ship organically grown 
Florida citrus fruit, as Special Purpose Shippers, with a conditional 
release from certain grade requirements issued under Sec. 905.52 of the 
order.
    When the provisions concerning special purpose shipments were made 
effective in 1978, there were no laws governing organic fruit and 
vegetable growers in Florida. A ``Special Purpose Shipper'' was defined 
under the marketing order as one who had certified that they would 
handle only citrus fruit which they knew from their own personal 
knowledge was produced on trees on which only compost, non-acidulated 
fertilizer such as rock phosphate, dolomite, or ground limestone is 
used, and to which no chemical insecticide or fungicide had been 
applied. However, the State of Florida now requires all organically 
grown fruits and vegetables to be certified. Accordingly, the committee 
has recommended redefining the term ``Special Purpose Shipper'' in 
Sec. 905.146 to mean a person who handles Florida citrus fruit that is 
certified by a Florida Department of Agriculture and Consumer Services 
licensed certifying agent as organically grown under Florida law. This 
definition reflects that organic fruit has been certified under Florida 
law, and also provides additional assurance that shippers claiming 
organic status and utilizing the grade standards for organic fruit 
qualify to do so.
    Under Florida law, the Florida Department of Agriculture and 
Consumer Services licenses independent third parties to act as 
certifying agents. Growers who intend to sell organic fruit make an 
application to a certifying agent. The certifying agent inspects and 
certifies a grower's acreage as being in accordance with Florida law 
and issues the grower a certificate. The certificate number is 
transferred to a trip ticket which accompanies any shipments of fruit 
grown on the certified acreage. When the handler receives the shipment, 
a copy of the trip ticket is provided to the state inspector indicating 
that the fruit is certified organic and can be packed using the 
applicable organic grade standards.
    The committee also recommended that Sec. 905.146 be revised to 
require Special Purpose Shippers to certify that they will limit their 
shipments of organically grown citrus fruit to outlets handling 
organically grown fruits. This replaces the requirement that only 
outlets registered and approved by the committee could receive such 
fruit and ends the requirement that receivers of special purpose 
shipments complete the applicable sections of the Report of Special 
Purpose Shipments form.
    The language in Sec. 905.146, 905.147, 905.148 concerning 
Certificates of Privilege is being revised for clarity, and procedural 
safeguards are being added to Sec. 905.147(c) dealing with suspensions 
or denials of Certificates of Privilege.
    This rule reflects the committee's and the Department's appraisal 
of the need to revise the exemption provisions for special purpose 
shipments, as specified. The Departmental view is that this rule may 
have a beneficial impact on growers and shippers of organic citrus 
fruit.
    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.
    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
chapter 35), the information collection requirements that are contained 
in this rule have been previously approved by the Office of Management 
and Budget (OMB) and have been assigned OMB number 0581-0094. This 
action will reduce the reporting burden on approximately 95 receivers 
of special purpose shipments of Florida citrus completing a section of 
the Report of Special Purpose Shipments form, taking about .04 hour to 
complete each report.
    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 rule updates provisions in the 
regulations; (2) Florida citrus fruit handlers are aware of this rule 
which was unanimously recommended by the committee at a public meeting 
and they will need no additional time to comply with the revised 
requirements; (3) shipment of the 1993-94 season Florida citrus fruit 
crop is currently in progress; and (4) the rule provides a 30-day 
comment period, and any comments received will be considered prior to 
any finalization of this interim final rule.

List of Subjects in 7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements, Tangelos, Tangerines.

    For the reasons set forth in the preamble, 7 CFR part 905 is 
amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN 
FLORIDA

    1. The authority citation for 7 CFR part 905 continues to read as 
follows:

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

    2. Section 905.146 is revised to read as follows:


Sec. 905.146  Special purpose shipments.

    (a) A Special Purpose Shipper is one who handles Florida citrus 
fruit that is certified by a Florida Department of Agriculture and 
Consumer Services licensed certifying agent as organically grown under 
Florida law. In addition, the shipper shall certify that shipments will 
be limited to outlets handling organically grown fruits. Any such 
shipments shall be subject to a Certificate of Privilege issued by the 
committee.
    (b) To qualify for a Certificate of Privilege, each such shipper 
must notify the committee prior to the first shipment of certified 
organically grown Florida citrus fruit in the fiscal period of the 
shipper's intent to ship such citrus, submit an application on forms 
supplied by the committee, and agree to other requirements as set forth 
in Secs. 905.147 and 905.148 inclusive, with respect to such shipments. 
The shipper shall certify that no claims will be made, written or 
verbal, concerning any alleged advantages of using, or any alleged 
superiority of, fruit shipped under a Certificate of Privilege, 
compared to other Florida produced citrus.
    (c) Citrus meeting all other applicable requirements may be handled 
without regard to grade regulations issued under Sec. 905.52 under the 
following conditions:
    (1) Such fruit meets requirements of the U.S. No. 2 Russet grade 
and those requirements of the U.S. No. 1 grade relating to shape (form) 
as such requirements are set forth in the revised U.S. Standards for 
grades of Florida Oranges and Tangelos (7 CFR 2851.1140 through 
2851.1180), the revised U.S. Standards for Florida Tangerines (7 CFR 
2851.8180 through 2851.1835), or the revised U.S. Standards for Grades 
of Florida Grapefruit (7 CFR 2851.750 through 2851.784). Such fruit 
meets applicable minimum size requirements in effect for domestic 
shipments of citrus fruits.
    (2) All such citrus shall be inspected as required by Sec. 905.53 
by the Federal or Federal-state Inspection Service prior to the time 
such citrus is shipped from the packing facility, and certified as 
meeting the applicable requirements.
    (3) Be reported as required in Sec. 905.148.
    4. Section 905.147, paragraphs (a) and (c) are revised to read as 
follows:


Sec. 905.147  Certificate of privilege.

    (a) Application. Application for Certificate of Privilege by a 
Special Purpose Shipper shall be made on forms furnished by the 
committee. Each application may contain, but need not be limited to, 
the name and address of each handler; a list of certified organic 
citrus fruit growers, including addresses; a list of receivers; the 
quantity and variety of citrus to be shipped; a certification to the 
Secretary of Agriculture and to the committee as to the truthfulness of 
the information shown thereon; and any other appropriate information or 
documents deemed necessary by the committee or its duly authorized 
agents for the purposes stated in Sec. 905.146.
* * * * *
    (c) Suspension or Denial of Certificate of Privilege. The committee 
may investigate the handling of special purpose shipments under 
Certificates of Privilege to determine whether Special Purpose Shippers 
are complying with the requirements and regulations applicable to such 
certificates. Whenever the committee finds that a Special Purpose 
Shipper or consignee is failing to comply with the requirements and 
regulations applicable to such certificates, the Certificate of 
Privilege issued to such Special Purpose Shipper may be suspended or, 
in the case of an application for the issuance of an initial 
Certificate of Privilege, may be denied. Such suspension of a 
certificate shall be for a reasonable period of time as determined by 
the committee, but in no event shall it extend beyond the end of the 
current fiscal period. In the case of the denial of an application for 
the issuance of an initial certificate, such certificate shall be 
denied until the applicant comes into compliance with the requirements 
and regulations applicable to such certificates. Prior to suspending or 
denying an application for a Certificate of Privilege, the committee 
shall give the shipper or applicant reasonable advance notice in 
writing of its intention and the facts and reasons therefor, and afford 
the shipper or applicant an opportunity, either orally or in writing, 
to present opposing facts and reasons. The shipper or applicant shall 
be informed of the committee's determination in writing and in a timely 
manner.
    4. Section 905.148 is amended by revising paragraph (a) and the 
first two sentences in paragraph (b) to read as follows:


Sec. 905.148  Reports of special purpose shipments under certificates 
of privilege.

    (a) Each handler of citrus shipping under Certificates of Privilege 
shall supply the committee with reports on each shipment as requested 
by the committee, on forms supplied by the committee, showing the name 
and address of the shipper or shippers; name and address of the 
certified organic Florida citrus fruit grower or growers supplying 
fruit for such shipment; truck or other conveyance identification; the 
loading point; destination, consignee; the inspection certificate 
number; and any other information deemed necessary by the committee.
    (b) One copy of the report on each shipment shall be forwarded by 
the shipper to the committee within 10 days after such shipment, and 
two copies of the report shall accompany each shipment to the receiver. 
Upon the receipt of each shipment, the receiver shall complete the 
applicable portion of the form and return one copy to the committee 
within 10 days and one copy shall be retained by the shipper. * * *

    Dated: May 18, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-12591 Filed 5-24-94; 8:45 am]
BILLING CODE 3410-02-P