[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: 94-17245]
[[Page Unknown]]
[Federal Register: July 15, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 989
[Docket No. FV94-989-3PR]
Raisins Produced From Grapes Grown in California; Removal of an
Exemption for Raisins Produced in Southern California and Exported to
Mexico
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule with request for comments.
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SUMMARY: This proposed rule would revise the administrative rules and
regulations established under the Federal marketing order for raisins
produced from grapes grown in California. It would remove a provision
that currently exempts raisins produced from grapes dried on the vine
in southern California and exported to Mexico from all marketing order
requirements. This rule is based on a unanimous recommendation of the
Raisin Administrative Committee (Committee), which is responsible for
local administration of the order. Elimination of the exemption is
intended to facilitate administration and improve enforcement efforts.
DATES: Comments must be received by August 1, 1994.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent in triplicate to
the Docket Clerk, Marketing Order Administration Branch, F&V, AMS,
USDA, room 2523-S, P.O. Box 96456, Washington, DC 20090-6456, FAX (202)
720-5698. Comments should reference this 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: Richard P. Van Diest, Marketing
Specialist, California Marketing Field Office, Fruit and Vegetable
Division, AMS, USDA, 2202 Monterey Street, Suite 102B, Fresno,
California 93721; telephone: (209) 487-5901, or FAX (209) 487-5906; or
Mark A. Slupek, Marketing Specialist, Marketing Order Administration
Branch, F&V, AMS, USDA, room 2523-S, P.O. Box 96456, Washington, DC
20090-6456; Telephone: (202) 205-2830, or FAX (202) 720-5698.
SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing
Agreement and Order No. 989 [7 CFR part 989], both as amended,
regulating the handling of raisins produced from grapes grown in
California. The order is effective under the Agricultural Marketing
Agreement Act of 1937, as amended, [7 USC 601-674], hereinafter
referred to as the ``Act.''
The Department of Agriculture (Department) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. It is not intended to have retroactive effect. This
action 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 requesting a modification of the order or to be exempted
therefrom. A handler is afforded the opportunity for a hearing on the
petition. After a 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 entry of the ruling.
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.
There are approximately 20 handlers of California raisins who are
subject to regulation under the raisin marketing order, and
approximately 5,000 producers in the regulated area. Small agricultural
producers have been defined by the Small Business Administration [13
CFR 121.601] as those having annual receipts of less than $500,000, and
small agricultural service firms are defined as those whose annual
receipts are less than $5,000,000. A majority of producers and a
minority of handlers of California raisins may be classified as small
entities.
This proposed rule would remove a provision that exempts raisins
produced from grapes dried on the vine in southern California and
exported to Mexico in natural condition from all marketing order
requirements. It is based on a unanimous recommendation of the
Committee and other available information.
Section 989.60 of the order provides that the Committee may
establish, with the approval of the Secretary, rules and procedures to
exempt from regulations raisins produced in southern California (i.e.,
the counties of Riverside, Imperial, San Bernardino, Ventura, Orange,
Los Angeles, and San Diego) and disposed of for distillation, livestock
feed, or by export in natural condition to Mexico.
Paragraph (b) of section 989.160 of Subpart--Administrative Rules
and Regulations (7 CFR 989.102-989.176) currently exempts raisins
produced from grapes dried on the vine in those southern California
counties, which are disposed of for use in distillation, livestock
feed, or by export in natural condition to Mexico, from all marketing
order requirements. This proposed rule would eliminate the exemption
that applies to those raisins exported in natural condition to Mexico.
When that exemption provision was established in the early 1970's,
the quantities of raisins exported to Mexico were relatively small and
were of off grade quality. It was determined at that time that the
export exemption would not interfere with order regulations or with
accomplishing program objectives.
Diminished demand in recent years for off-grade raisins and raisin
residual material for distillation in California has made export in
natural condition to Mexico a relatively lucrative market. The
Committee has confirmed reports that large volumes of poor quality
raisins, including lots as large as forty to fifty thousand pounds,
have been exported into Mexico from southern California and other areas
of California. This is a significant departure from the situation which
existed when the exemption was first implemented. Raisins from areas
which are not exempt from the provisions of the order appear to be
passing into Mexico in violation of the regulations.
The North American Free Trade Agreement (NAFTA) has effected the
removal of import duties and license requirements, opening the Mexican
market to raisins which meet the quality requirements of the order.
Hence, there is now an opportunity to build an export market in Mexico
for high quality raisins. The Committee believes that all raisins
eligible for export to Mexico need to be subject to the quality
requirements of the order. The Committee also believes that the
regulation of such raisins is essential to meeting program objectives
and improving compliance efforts.
On the basis of this information, the Committee, on April 16, 1994,
unanimously recommended the removal of the exemption that applies to
raisins produced from grapes dried on the vine in southern California
and exported in natural condition to Mexico.
Based on the above, the Administrator of the AMS has determined
that this proposed rule would not have a significant economic impact on
a substantial number of small entities.
Interested persons are invited to submit their views and comments
on this proposal. A 15-day comment period is considered appropriate
because the Committee would like to stop further abuse of the current
provisions as soon as possible to accomplish marketing order
objectives.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 989 is
proposed to be amended as follows:
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
1. The authority citation for 7 CFR part 989 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 989.160 is amended by revising paragraph (b) to read as
follows:
Sec. 989.160 Exemptions.
(a) * * *
(b) Disposition of raisins produced in Southern California. Raisins
produced from grapes dried on the vine in the counties of Riverside,
Imperial, San Bernardino, Ventura, Orange, Los Angeles, and San Diego,
which are disposed of for use in distillation or livestock feed, shall
be exempt from the provisions of this part.
Dated: July 11, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-17245 Filed 7-14-94; 8:45 am]
BILLING CODE 3410-02-P