[Federal Register Volume 59, Number 173 (Thursday, September 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22251]


[[Page Unknown]]

[Federal Register: September 8, 1994]


                                                   VOL. 59, NO. 173

                                        Thursday, September 8, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Docket No. FV94-905-2-PR]

 

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
and Fruits, Import Regulations (Grapefruit); Proposed Higher Grade 
Requirements for Florida-Grown and Imported Red and White Seedless 
Grapefruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would increase the minimum grade 
requirements for Florida-grown and imported fresh red and white 
seedless grapefruit to U.S. No. 1, from the current minimum grade 
requirement of Improved No. 2 External-U.S. No. 1 Internal. This 
proposed rule is designed to improve the quality and strengthen the 
demand for fresh domestic, export, and import shipments of seedless 
grapefruit in the interest of producers, handlers, and consumers of 
such fruit.

DATES: Comments must be received by September 23, 1994.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to: Docket Clerk, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, Room 2523-S, Washington, DC 20090-
6456. Three copies of all written material shall be submitted, and they 
will be made available for public inspection at the office of the 
Docket Clerk during regular business hours. All comments should 
reference the docket number, date, and page number of this issue of the 
Federal Register.

FOR FURTHER INFORMATION CONTACT: Mark Kreaggor, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, Room 2523-S, Washington, DC 20090-6456; telephone: 202-720-
2431; 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 proposed 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.
    This proposed rule is also issued under section 8e [7 U.S.C. 
Section 608e-1] of the Act. Section 8e of the Act provides that 
whenever specified commodities, including grapefruit, are regulated 
under a Federal marketing order, imports of these commodities into the 
United States are prohibited unless they meet the same or comparable 
grade, size, quality, or maturity requirements as those in effect for 
the domestically produced commodities. Section 8e also provides that 
whenever two or more marketing orders regulate the same commodity 
produced in different areas of the United States, the Secretary shall 
determine which area the imported commodity is in most direct 
competition with and apply regulations based on that area to the 
imported commodity. The Secretary has determined that grapefruit 
imported into the United States are in most direct competition with 
grapegruit grown in Florida regulated under the order, and has found 
that the minimum grade and size requirements for imported grapefruit 
should be the same as those established for grapefruit under the order.
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This proposed rule is not intended to have 
retroactive effect. This proposed rule would 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 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.
    There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of this proposed rule 
pertaining to grapefruit import requirements issued under section 8e of 
the Act.
    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. Import regulations issued under 
the Act are based on those established under Federal marketing orders.
    There are about 100 Florida citrus handlers subject to regulation 
under the order covering oranges, grapefruit, tangerines, and tangelos 
grown in Florida, about 11,000 producers of these citrus fruits in 
Florida, and about 25 grapefruit importers. Small agricultural service 
firms, which includes grapefruit handlers and importers, have been 
defined by the Small Business Administration [13 CFR 121.601] as those 
having annual receipts are less than $5,000,000, and small agricultural 
producers are defined as those whose annual receipts are less than 
$500,000. A minority of these handlers and a majority of these 
producers and importers may be classified as small entities.
    The Citrus Administrative Committee (committee) met on June 21, 
1994, and recommended the regulatory changes for Florida citrus. The 
committee meets prior to and during each season to review the handling 
regulations effective on a continuous basis for each citrus fruit 
regulated under the order. Committee meetings are open to the public, 
and interested persons may express their views at these meetings. The 
Department reviews committee recommendations and information, as well 
as information from other sources, and determines whether modification, 
suspension, or termination of the handling regulations would tend to 
effectuate the declared policy of the Act.
    Section 905.306 [7 CFR 905.306] specifies minimum grade 
requirements for different varieties of fresh Florida-grown grapefruit, 
as authorized by Sec. 905.52 [7 CFR 905.52] of the order. Section 
905.306 specifies such grade requirements in TABLE I of paragraph (a) 
for domestic markets (fruit shipped from the production area to any 
point outside thereof in the 48 contiguous States and the District of 
Columbia of the United States), and in TABLE II of paragraph (b) for 
export markets (fruit shipped from any point in the 48 contiguous 
States and the District of Columbia of the United States to any 
destination).
    This proposed rule would amend Sec. 905.306 by revising the entries 
for grapefruit in TABLE I and in TABLE II, effective September 1, 1994. 
Under the proposal, the minimum grade requirements for domestic and 
export shipments of Florida-grown red and white seedless grapefruit 
would be increased to U.S. No. 1, from the current minimum grade 
requirement of Improved No. 2 External--U.S. No. 1 Internal, beginning 
with 1994-95 season shipments.
    The current minimum size requirements for Florida-grown red and 
white seedless grapefruit for both domestic and export shipment would 
remain unchanged under this rule. Also, the current minimum grade and 
size requirements for Florida-grown red and white seeded grapefruit for 
both domestic and export shipments would remain unchanged.
    This proposed rule would remove entries and seeded pink grapefruit 
and seedless pink grapefruit in TABLE I and in TABLE II of 
Sec. 905.306. Such removal is necessary because such pink grapefruit 
were reclassified as red grapefruit and the entries in such tables for 
pink grapefruit were changed to red grapefruit by a final rule 
published in the Federal Register [55 FR 41659, October 15, 1990], but 
such changes were not incorporated in the Code of Federal Regulations.
    The committee recommended that the minimum grade requirements for 
domestic and export market shipments of fresh Florida-grown red and 
white seedless grapefruit be increased, as specified. The committee 
reports that it expects that the proposed higher minimum grade 
requirements will result in better quality Florida-grown red and white 
seedless grapefruit being shipped to the fresh market, and that such 
fruit should receive greater consumer support, increase consumer 
demand, and improve grower returns. The consumer demand for such 
grapefruit should be strengthened, because consumers prefer the higher 
quality grapefruit which this proposed rule should require be shipped.
    Minimum grade requirements under the order are designed to provide 
fresh markets with fruit of acceptable grade and maturity, thereby 
maintaining consumer confidence in fresh Florida-grown grapefruit. This 
helps create buyer confidence and contributes to stable marketing 
conditions.
    The proposed higher grade requirements for Florida-grown red and 
white seedless grapefruit are based on the committee's assessment of 
the prospective crop and market conditions for the 1994-95 season 
Florida-grown seedless grapefruit crop. The proposed requirements are 
designed to enable Florida grapefruit shippers to ship red and white 
seedless grapefruit to the domestic and export markets consistent with 
anticipated demand in those markets.
    Processing outlets are an important market for Florida-grown 
seedless grapefruit, with nearly one-half of the seedless grapefruit 
crop produced in Florida normally utilized in processing. Any 
grapefruit which do not meet the proposed higher grade requirements 
could be utilized in processing outlets.
    The committee reports that it expects that more red and white 
seedless grapefruit will be produced in Florida during the 1994-95 
season than last season. The committee also expects that supplies of 
fresh Florida-grown red and white seedless grapefruit meeting the 
higher grade requirements will adequately meet consumer demand during 
the entire 1994-95 season. The Florida seedless grapefruit shipping 
season normally begins in September and continues until the following 
July, but occasionally it begins in late August.
    This proposed rule is designed to establish and maintain orderly 
marketing conditions in the United States for fresh Florida-grown red 
and white seedless grapefruit in the interest of producers, handlers, 
and consumers, and it expected to increase returns to Florida 
grapefruit producers.
    Under the order, handlers may ship up to 15 standard packed cartons 
(12 bushels) of fruit per day exempt from grade and size requirements. 
Fruit shipped in gift packages which are individually addressed and not 
for resale, and fruit shipped for animal feed are also exempt from 
grade and size requirements under specific conditions. Also, fruit 
shipped to commercial processors for conversion into canned or frozen 
products or into a beverage base are not subject to the handling 
requirements under the order.
    Minimum grade and size requirements for grapefruit imported into 
the United States are currently in effect under Sec. 944.106 [7 CFR 
944.106]. This proposed rule would amend Sec. 944.106 by revising 
paragraph (a) and the table in that section by modifying the entries 
for imported red and white seedless grapefruit. This would increase the 
minimum grade requirements for such grapefruit to U.S. No. 1, from the 
current minimum grade requirement of Improved No. 2 External--U.S. No. 
1 Internal. The proposed higher grade requirements for imported red and 
white seedless grapefruit are the same as those being proposed in this 
rule under Sec. 905.306 for red and white seedless grapefruit grown in 
Florida.
    The current minimum size requirements for imported red and white 
seedless grapefruit would remain unchanged under this proposed rule. 
Also, the current minimum grade and size requirements for imported red 
and white seeded grapefruit would remain unchanged.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this proposed rule, 
as it pertains to red and white seedless grapefruit imported into the 
United States.
    This proposed rule reflects the committee's and the Department's 
appraisal of the need to increase the minimum grade requirements for 
fresh Florida-grown red and white seedless grapefruit, as specified. 
The Department's view is that this proposed rule could have a 
beneficial impact on Florida producers and handlers of fresh seedless 
grapefruit, since it would enable such producers and handlers to make 
available those grades of grapefruit needed to meet consumer needs 
consistent with 1994-95 season crop and market conditions.
    This proposed rule also reflects the Department's appraisal of the 
need to increase the grade requirements for imported red and white 
seedless grapefruit, so that such fruit would meet the same higher 
grade requirements proposed for Florida-grown red and white seedless 
grapefruit, consistent with the Act.
    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.
    A comment period of 15 days is deemed appropriate because the 
higher grade requirements for Florida-grown red and white seedless 
grapefruit need to be in effect when shipment of Florida's 1994-95 
season fresh seedless grapefruit crop is expected to begin on or about 
September 1, 1994.

List of Subjects

7 CFR Part 905

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

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 905 and 944 
are proposed to be amended as follows:

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

    1. The authority citation for 7 CFR parts 905 and 944 continues to 
read as follows:

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

    2. Section 905.306 is amended by revising the entries in TABLE I of 
paragraph (a) and in TABLE II of paragraph (b) for ``seeded, except red 
grapefruit'', ``seeded, red grapefruit'', ``seedless, except red 
grapefruit'', and ``seedless, red grapefruit''; and by removing the 
entries for ``seeded, except pink grapefruit'', ``seeded, pink 
grapefruit'', ``seedless, except pink grapefruit'', and ``seedless, 
pink grapefruit'' to read as follows:


Sec. 905.306  Orange, grapefruit, tangerine and tangelo regulation.

    (a) * * *

                                                     Table I                                                    
----------------------------------------------------------------------------------------------------------------
                                                                                                      Minimum   
          Variety                          Regulation period                    Minimum grade        diameter   
                                                                                                     (inches)   
----------------------------------------------------------------------------------------------------------------
(1)                         (2)...........................................  (3).................             (4)
                                                                                                                
                                                  * * * * * * *                                                 
                                                                                                                
GRAPEFRUIT                                                                                                      
                                                                                                                
                                                  * * * * * * *                                                 
                                                                                                                
Seeded, except red........  On and after 09/01/94.........................  U.S. No. 1..........        3\12/16\
Seeded, red...............  On and after 09/01/94.........................  U.S. No. 1..........        3\12/16\
Seedless, red.............  On and after 09/01/94.........................  U.S. No. 1..........         3\9/16\
Seedless, except red......  09/01/94-11/06/94.............................  U.S. No. 1..........         3\5/16\
                            On and after 11/07/94.........................  U.S. No. 1..........         3\9/16\
                                                  * * * * * * *                                                 
----------------------------------------------------------------------------------------------------------------

    (b) * * *

                                                    Table II                                                    
----------------------------------------------------------------------------------------------------------------
                                                                                                      Minimum   
          Variety                          Regulation period                    Minimum grade        diameter   
                                                                                                     (inches)   
----------------------------------------------------------------------------------------------------------------
(1)                         (2)...........................................  (3).................             (4)
                                                  * * * * * * *                                                 
                                                                                                                
GRAPEFRUIT                                                                                                      
                                                                                                                
                                                  * * * * * * *                                                 
                                                                                                                
Seeded, except red........  On and after 09/01/94.........................  U.S. No. 1..........         3\9/16\
Seeded, red...............  On and after 09/01/94.........................  U.S. No. 1..........         3\9/16\
Seedless, except red......  On and after 09/01/94.........................  U.S. No. 1..........         3\5/16\
Seedless, red.............  On and after 09/01/94.........................  U.S. No. 1..........         3\5/16\
                                                  * * * * * * *                                                 
----------------------------------------------------------------------------------------------------------------

* * * * *


PART 944--FRUITS; IMPORT REGULATIONS

    3. Section 944.106 is amended by revising paragraph (a), and by 
redesignating the second appearing paragraph (h) as paragraph (i) to 
read as follows:


Sec. 944.106  Grapefruit import regulation.

    (a) Pursuant to Section 8e [7 U.S.C. Section 608e-1] of the 
Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-
674], and Part 944--Fruits; Import Regulations, the importation into 
the United States of any grapefruit is prohibited unless such 
grapefruit meet the following minimum grade and size requirements for 
each specified grapefruit classification:

                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                                                                                      Minimum   
 Grapefruit classification                 Regulation period                    Minimum grade        diameter   
                                                                                                     (inches)   
----------------------------------------------------------------------------------------------------------------
Seeded....................  On & after 09/01/94...........................  U.S. No. 1..........        3\12/16\
Seedless, red.............  09/01/94-11/06/94.............................  U.S. No. 1..........         3\5/16\
                            On & after 11/07/94...........................  U.S. No. 1..........         3\9/16\
Seedless, except red......  On & after 09/01/94...........................  U.S. No. 1..........         3\9/16\
----------------------------------------------------------------------------------------------------------------

* * * * *
    Dated: September 6, 1994.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-22251 Filed 9-7-94; 8:45 am]
BILLING CODE 3410-02-M