[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
[Page 0]
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.

-----------------------------------------------------------------------

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