[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21085]
Federal Register / Vol. 59, No. 165 / Friday, August 26, 1994 /
[[Page Unknown]]
[Federal Register: August 26, 1994]
VOL. 59, NO. 165
Friday, August 26, 1994
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Docket No. FV93-905-5FIR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Finalize Revised Special Purpose Shipment Exemption Provisions for
Organic Citrus Fruit
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of an interim final rule to
redefine 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 final rule more precisely defines organically grown Florida citrus
fruit, and is designed to increase the market for organic shipments.
The rule was unanimously recommended by the Citrus Administrative
Committee (committee), the agency responsible for local administration
of the marketing order.
EFFECTIVE DATE: September 26, 1994.
FOR FURTHER INFORMATION CONTACT: Caroline C. Thorpe, 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 final rule is issued under Marketing
Agreement No. 87 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 is issuing this rule in conformance with Executive
Order 12866.
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This final rule is not intended to have
retroactive effect. This 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.
An interim final rule was issued on May 18, 1994, and published in
the Federal Register [59 FR 26927, May 25, 1994], with an effective
date of May 25, 1994. That rule amended Secs. 905.146, 905.147, and
905.148 of the rules and regulations in effect under the order. That
rule provided a 30-day comment period which ended June 24, 1994. One
comment was received.
Mr. Joseph B. Procacci, Assistant Chairman, National Association of
Perishable Agricultural Receivers, filed a comment in support of the
revisions. He supports the revision in the regulation's definition of
Special Purpose Shippers to include Florida's new certification process
of organic producers. He stated it is crucial in preserving the
integrity of the organic citrus industry. He also expressed support for
the regulation's requirement that such shippers also certify that they
will limit organic shipments to organic outlets.
The 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.
The interim final rule also more precisely defined organic fruit,
and the type of market outlets which organically grown fruit could 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. The interim final rule replaced the
requirement that only outlets registered and approved by the committee
could receive such fruit and ended the requirement that receivers of
special purpose shipments complete the applicable sections of the
Report of Special Purpose Shipments form.
The language in Secs. 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 finalize the revised exemption provisions for special
purpose shipments, as specified. The Department's 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 finalizing the interim final rule, without change, as
published in the Federal Register [59 FR 26927, May 25, 1994] will tend
to effectuate the declared policy of the Act.
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
Accordingly, the interim final rule amending 7 CFR Part 905 which
was published at FR 59 26927, on May 25, 1994, is adopted as a final
rule without change.
Dated: August 22, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-21085 Filed 8-25-94; 8:45 am]
BILLING CODE 3410-02-P