[Federal Register Volume 59, Number 135 (Friday, July 15, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-17242] [[Page Unknown]] [Federal Register: July 15, 1994] VOL. 59, NO. 135 Friday, July 15, 1994 DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Parts 925 and 944 [Docket No. FV93-925-1PR] Table Grapes Grown In Southeastern California and Table Grapes Imported Into the United States; Revision in Minimum Grade Requirements AGENCY: Agricultural Marketing Service, USDA. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This proposal invites comments on changes in the minimum quality requirements currently in effect for table grapes grown in southeastern California under Marketing Order No. 925 and for table grapes imported into the United States. This proposed rule would allow for the handling of grapes which satisfy all the requirements of the U.S. No. 1 Institutional grade except for bunch size tolerance. The objective of this proposal is to aid handlers and importers in the marketing of grapes which do not meet the U.S. No. 1 Institutional grade because of a greater variance in bunch size. DATES: Comments must be received by August 1, 1994. ADDRESSES: Interested persons are invited to submit written comments concerning this proposal. Comments must be sent in triplicate to the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room 2523-S, Washington, DC 20090-6456. 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: Peter I. Parks, California Marketing Field Office, Marketing Order Administration Branch, Fruit and Vegetable Division, AMS, USDA, 2202 Monterey Street, Suite 102B, Fresno, California 93721, telephone (209) 487-5901; or Charles L. Rush, 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. SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing Agreement and Order No. 925 [7 CFR part 925], regulating the handling of grapes grown in a designated area of southeastern California. The marketing agreement and order are authorized under the Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-674], hereinafter referred to as the Act. This proposed rule is also issued pursuant to section 8e of the Act, which requires the Secretary of Agriculture to issue grade, size, quality, or maturity requirements for certain listed commodities imported into the United States that are the same as, or comparable to, those imposed upon the domestic commodities under Federal marketing orders. Table grapes were added to the list of commodities specified in section 8e in 1982. The Department of Agriculture (Department) is issuing this rule in conformance with Executive Order 12866. This proposal has been reviewed under Executive Order 12778, Civil Justice Reform. This action is not intended to have retroactive effect. This proposal will not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this action. 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 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 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 approximately 20 handlers of California desert grapes subject to regulation under the marketing order, and approximately 90 producers. In addition, there are approximately 70 importers of table grapes subject to the requirements of the table grape import regulation. Small agricultural service firms, which include handlers and importers, have been defined by the Small Business Administration [13 CFR 121.601] as those having annual receipts of less than $3,500,000, and small agricultural producers are defined as those whose annual receipts are less than $500,000. The majority of the table grape handlers, producers and importers may be classified as small entities. Under the marketing order, table grapes grown in southeastern California are currently subject to a minimum grade requirement of U.S. No. 1 or U.S. No. 1 Institutional, as set forth in the United States Standards for Grades of Table Grapes (European or Vinifera Type) (Standards). The requirements of the U.S. No. 1 Institutional grade are the same as those of the U.S. No. 1 grade, with two exceptions. The first relates to bunch size. Under the U.S. No. 1 grade, there is a minimum bunch size requirement of 4 ounces. Under the U.S. No. 1 Institutional grade, bunches must weigh at least 2 ounces but not more than 5 ounces. 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,'' whereas no such marking requirement applies under the U.S. No. 1 grade. In order to allow for variations incident to proper grading and handling, both grades provide a tolerance of 8 percent for off-size bunches and for bunches and berries failing to meet other grade requirements. The California Desert Grape Administrative Committee (committee), the agency responsible for local administration of the order, met on November 4, 1993, and unanimously recommended relaxing the quality requirements in the handling regulations to allow an additional bunch size tolerance for grapes which would otherwise grade U.S. No. 1 Institutional. This proposal would provide an additional tolerance of 25 percent, or a total of 33 percent, for bunches of grapes that would otherwise meet the U.S. No. 1 Institutional grade. Prior to the 1992 season, the minimum grade requirement in effect under the order was U.S. No. 1 grade. The U.S. No. 1 Institutional grade was authorized as a means of allowing the industry to fulfill demands of the foodservice industry (e.g., restaurants and schools) for smaller sized bunches of grapes than are preferred in other markets. However, the domestic table grape industry has experienced difficulty in meeting the requirements of the U.S. No. 1 Institutional grade due to the 8 percent tolerance for off-sized bunches. The committee believes that establishing an additional tolerance for off-sized bunches in the handling regulation will promote sales of grapes packed for institutional use. Due to the requirements of the current handling regulation, California table grape handlers are unable to ship smaller grape bunches because of the 8 percent off-size bunch tolerance of the U.S. No. 1 Institutional grade. This has required handlers to repack grapes after they have been packed in the vineyards, resulting in packing costs that are prohibitively high for the modest prices paid by buyers of institutional grade grapes. Allowing an additional 25 percent bunch size tolerance is expected to allow the industry to more fully utilize its grapes in the marketplace. This proposal would allow handlers to mark containers of grapes meeting the modified requirements as proposed herein as ``DGAC No. 1 Institutional.'' In accordance with section 8e of the Act, table grapes imported into the United States are subject to the same minimum grade requirements as those in effect for domestically grown grapes under the marketing order. Those requirements are found in Table Grape Import Regulation 4 [7 CFR part 944.503]. Because this proposed rule would provide an additional tolerance for off-size bunches of grapes under the domestic handling regulation, the same change is being proposed under the table grape import regulation. Finally, this rule would also update references to government contacts and sources of regulatory information in both the domestic and import regulations. Based on available information, the Administrator of the AMS has determined that this action would not have a significant economic impact on a substantial number of small entities. Interested persons are invited to submit comments on this proposal. A 15-day comment period is considered appropriate because this action would relax requirements currently in effect, and to be of maximum benefit it should be in effect as soon as possible since the 1994 shipping season began on April 20. In accordance with section 8e of the Act, the United States Trade Representative has concurred with the issuance of this proposed 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 proposed to be amended as follows: 1. The authority citation for both 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 paragraph (a) to read as follows: Sec. 925.304 California Desert Grape Regulation 6. (a) Grade, size, and maturity. Except as provided under 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, or U.S. No. 1 Institutional, as set forth in the United States Standards for Grades of Table Grapes (European or Vinifera Type, 7 CFR 51.880 through 51.913) (Standards), 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 8 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.'' (1) Grapes of the Perlette variety shall meet the minimum berry size requirement of ten-sixteenths of an inch; (2) Grapes of the Flame Seedless variety shall meet the minimum berry size requirement of ten-sixteenths of an inch; 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 1436.3, 1436.5, 1436.6, 1436.7, 1436.12, and 1436.17 of Article 25 of the California Administrative Code [Title 3]. * * * * * 3. Section 925.304(f) is amended by removing the zip code ``20250'' and adding in its place ``20090-6456'' and by removing the phone number ``(202) 447-5697'' and adding in its place ``(202) 720-2491''. PART 944--FRUITS, IMPORT REGULATIONS 4. Section 944.503 is amended by revising paragraph (a)(1) 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 or in 7 CFR 51.885 for U.S. No. 1 Institutional grade, as set forth in the United States Standards for Grades of Table Grapes (European or Vinifera Type, 7 CFR 51.880 through 51.913), 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 8 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.'' (1) Grapes of the Perlette variety shall meet the minimum berry size requirement of ten-sixteenths of an inch, and (2) Grapes of the Flame Seedless variety shall meet the minimum berry size requirement of ten-sixteenths of an inch 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 1436.3, 1436.5, 1436.6, 1436.7, 1436.12, and 1436.17 of Article 25 of the California Administrative Code (Title 3). * * * * * 5. Section 944.503(a)(2) is amended by removing the zip code ``20250'' and adding in its place ``20090-6456'' and by removing the phone number ``(202) 447-5697'' and adding in its place ``(202) 720- 2491.'' Dated: July 11, 1994. Robert C. Keeney, Deputy Director, Fruit and Vegetable Division. [FR Doc. 94-17242 Filed 7-14-94; 8:45 am] BILLING CODE 3410-02-P