[Federal Register Volume 59, Number 240 (Thursday, December 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30785]


  Federal Register / Vol. 59, No. 240 / Thursday, December 15, 1994 /
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[[Page Unknown]]

[Federal Register: December 15, 1994]


                                                   VOL. 59, NO. 240

                                        Thursday, December 15, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV94-905-3-FIR]

 

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Repacked Citrus Fruit Shipment Exemption Procedures

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 
which established exemption procedures governing shipments of repacked 
fresh citrus fruit grown in Florida. This rule permits repacking 
shippers to repack and ship previously inspected and certified citrus 
fruit exempt from further inspection and certification under specific 
conditions. This exemption enables repacking shippers to repack and 
ship fruit for specialty markets, without incurring the costs of having 
the fruit reinspected and recertified.

EFFECTIVE DATE: January 17, 1995.

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 final rule is issued under Marketing 
Agreement No. 84 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 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. This rule is not intended to have retroactive effect. 
This 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 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.
    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 fruit handlers subject to 
regulation under the marketing order covering oranges, grapefruit, 
tangerines, and tangelos grown in Florida, and about 11,970 producers 
of these citrus fruits in Florida. 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 minority of these handlers and a majority 
of the producers may be classified as small entities.
    The Citrus Administrative Committee (committee) met on June 21, 
1994, and unanimously recommended establishment of exemption 
procedures, for repacked previously inspected and certified citrus 
fruit. The committee meets prior to and during each season to review 
the rules and 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 905.80 [7 CFR Part 905.80] provides for the shipment of 
fruit not subject to grade and size regulations issued under 
Sec. 905.52 [7 CFR Part 905.52], and inspection and certification 
required under Sec. 905.53 [7 CFR Part 905.53], including types of 
shipments and fruit shipped for such purposes as the committee with 
approval of the Secretary may specify. Section 905.80 also provides 
that the committee shall, with approval of the Secretary, prescribe 
such rules, regulations, or safeguards as it may deem necessary to 
prevent varieties handled under the provisions of this section from 
entering channels of trade for other than the purposes authorized. Such 
rules, regulations, and safeguards may include the requirements that 
handlers file applications with the committee for authorization to 
handle citrus fruit exempt from certain order requirements, and report 
such exempted shipments to the committee.
    Section 905.53 provides that when the handling of citrus fruit is 
regulated under Sec. 905.52, each handler shall, prior to handling any 
lot of such citrus fruit, cause such citrus fruit to be inspected and 
certified by the Federal or Federal/State Inspection Service (FSIS) as 
meeting all applicable requirements of such regulation. Section 905.53 
also provides that inspection and certification shall not be required 
for a particular lot of citrus fruit, if such lot has been previously 
inspected and certified by the FSIS as meeting the handling 
requirements issued under the authority of Sec. 905.52.
    However, prior to the interim final rule, if such citrus fruit was 
repacked prior to shipment from the production area, the repacking 
shipper was required to have the citrus fruit reinspected and 
recertified. This was because the citrus fruit loses its lot identity 
during the repacking process, and there was no way to demonstrate that 
the repacked citrus fruit was the same fruit as that which has already 
been inspected and certified as meeting order requirements.
    The committee recommended establishment of the following exemption 
procedures to enable repacking shippers who only repack and ship 
previously inspected and certified citrus fruit to ship such fruit 
exempt from further inspection and certification under specific 
conditions. The exemption provisions enable repacking shippers to 
custom repack and ship previously inspected and certified citrus fruit 
in different types of containers that are more acceptable to certain 
buyers of specialty packs of citrus fruit, without incurring the cost 
of having the fruit reinspected and recertified as meeting order 
requirements. Eliminating the cost of having the citrus fruit 
reinspected and certified is expected to lower repacking costs for 
repacking shippers, thereby placing them on a more equal cost basis 
with repackers of Florida citrus fruit located outside of the 
production area, who are not subject to the order requirements. 
Finalizing this rule may result in greater quantities of Florida-grown 
citrus fruit being shipped into fresh market channels and increase 
returns to Florida citrus growers.
    The committee also recommended the establishment of the following 
new rules and regulations under the order (Secs. 905.161, 905.162, and 
905.163) to govern the shipment of repacked citrus fruit under 
exemption, and to enable repacking shippers to ship repacked citrus 
fruit exempt from further inspection and certification. These rules and 
regulations are designed to provide safeguards to make sure that only 
citrus fruit repacked by repacking shippers under the conditions 
specified in Secs. 905.161, 905.162, and 905.163 is shipped from the 
production area.
    Section 905.161 defines a repacking shipper and establishes 
conditions under which such repacking shippers may repack and ship 
citrus fruit exempt from further inspection and certification under 
Sec. 905.53, subject to meeting certain safeguard conditions. Under 
this definition, a repacking shipper is a person who repacks and ships 
citrus fruit grown in the production area in Florida which has been 
previously inspected and certified as meeting the requirements 
specified under Sec. 905.52 of the order, and who has obtained a 
currently valid repacking certificate of privilege issued to him or her 
by the committee as specified in Sec. 905.162. Under Sec. 905.161, each 
repacking shipper, to qualify for a repacking certificate of privilege, 
must notify the committee 10 days prior to his or her first shipment of 
repacked citrus fruit during a particular fiscal period of his or her 
intent to ship such citrus fruit, submit an application on an 
Application for a Repacking Certificate of Privilege form supplied by 
the committee, and agree to other requirements as set forth in 
Secs. 905.162 and 905.163 inclusive, with respect to such shipments. 
The repacking shipper shall certify that he or she will only handle 
previously inspected and certified citrus fruit.
    Also under Sec. 905.161, any repacking shipper who handles citrus 
fruit shipped under a repacking certificate of privilege must see to it 
that all such citrus fruit has previously been positive lot identified 
by the Federal or Federal/State Inspection Service and certified as 
meeting the applicable requirements for citrus fruit shipped to the 
domestic market (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), prior to being repacked and shipped by 
the repacking shipper. Each such citrus fruit shipment shall be 
accompanied by a copy of the Federal-State manifest that certifies the 
grade and amount of each load of citrus fruit received, which shall be 
retained by the repacking shipper.
    To prevent the packing of uninspected fruit from the field into 
repacked lots, repacking shippers may not utilize repacking facilities 
which have operable equipment for washing, brushing, waxing, or drying 
citrus fruit. This precludes the mixing of ungraded fruit from the 
field with previously inspected fruit. In addition, all citrus fruit 
handled by a repacking shipper shall be packed in approved Florida 
Department of Citrus fruit containers, and each container shipped with 
such citrus fruit shall be marked with the repacking shipper's 
repacking certificate of privilege number.
    Section 905.162(a) establishes procedures under which repacking 
shippers who desire to repack and ship previously inspected and 
certified citrus fruit may apply to the committee to obtain a repacking 
certificate of privilege from the committee. Application for a 
repacking certificate of privilege by a repacking shipper shall be made 
on forms furnished by the committee. Each application shall contain, 
but need not be limited to, the name, address and Florida citrus fruit 
dealer license number of the applicant; approximate number of boxes to 
be handled during the season; the various types of containers to be 
used to ship the repacked citrus fruit; a certification to the 
Secretary of Agriculture and to the committee as to the truthfulness of 
the information shown thereon; and any other appropriate information or 
documents deemed necessary by the committee or duly authorized agents 
for the purposes stated in Sec. 905.161.
    Section 905.162(b) also provides a procedure for the committee to 
follow in approving a repacking certificate of privilege. The committee 
or its duly authorized agents shall give prompt consideration to each 
application for a repacking certificate of privilege. Approval of an 
application based upon a determination as to whether the information 
contained therein and other information available to the committee 
supports approval, shall be evidenced by the issuance of a repacking 
certificate of privilege to the applicant. Each certificate shall 
expire at the end of the fiscal period.
    Finally, Sec. 905.162(c) provides procedural safeguards for the 
committee to follow when dealing with suspensions or denials of 
repacking shippers certificates of privilege.
    Section 905.163 establishes procedures which require repacking 
shippers to report to the committee all shipments of repacked citrus 
fruit made under a repacking certificate of privilege. Under this 
section, each repacking shipper who handles citrus fruit under a 
repacking certificate of privilege shall supply the committee with 
reports on each shipment as requested by the committee, on forms 
supplied by the committee, showing the name and address of the 
repacking shipper; name and address of the handler supplying the 
inspected and certified citrus fruit for such shipment; number of 
packages; size and containers; brand or grade; certificate number; and 
any other information deemed necessary by the committee. Each repacking 
shipper of citrus fruit shall maintain on file a copy of the Federal-
State manifest that certifies the grade and amount of each load of 
citrus fruit received. These manifests shall be made available to the 
committee upon request. In addition, the repacking shipper shall 
promptly forward to the committee one copy of the Report of Shipments 
Under Certificate of Privilege form for each shipment, retain one copy 
of such form in his or her record files, and make sure one copy of such 
form accompanies the shipment. Failure to complete and return such 
forms shall be cause for the committee to suspend the repacking 
shipper's repacking certificate of privilege.
    This rule reflects the committee's and the Department's appraisal 
of the need to establish the new rules and regulations governing the 
shipment of repacked fresh citrus fruit, as specified. The Department's 
view is that this rule has a beneficial impact on producers and 
handlers of fresh Florida citrus fruit, since it will permit repacking 
shippers to repack and ship previously inspected and certified citrus 
fruit exempt from further inspection and certification.
    The interim final rule concerning this action was published in the 
September 23, 1994, Federal Register [59 FR 48780], with a 30-day 
comment period ending October 24, 1994. No comments were received.
    In accordance with the Paperwork Reduction Act of 1980 [44 U.S.C. 
Chapter 35], the information collection and recordkeeping requirements 
contained in this rule have been submitted to the Office of Management 
and Budget (OMB) for approval and have been assigned OMB No. 0581-0094. 
The committee estimates that about 10 repacking shippers of Florida 
citrus fruit will use the Application for a Repacking Certificate of 
Privilege form once each year, and that it will require an average of 
0.116 hours for them to complete each such form. The committee also 
estimates that about 10 repacking shippers of Florida citrus fruit will 
use the Report of Shipments Under Certificate of Privilege form 50 
times each year, and that it will require an average of 0.116 hours for 
them to complete each such form. Thus, this rule increases the total 
information collection burden under the order by 59.2 hours. The 
committee also estimates that the recordkeeping burden on the 10 
repacking shippers who are required to file and maintain a copy of the 
Federal-State manifest that certifies the grade and amount of each load 
of citrus fruit received at 50 hours annually (500 forms times an 
average of 0.1 hour required to file each form), and a copy of the 
Reports of Shipments Under Repacking Certificate of Privilege form 
filed with the committee at 50 hours annually (500 forms times an 
average of 0.1 hour required to file each form).
    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.
    After consideration of all relevant matter presented, the 
information and recommendations submitted by the committee, and other 
information, it is found that finalizing the interim final rule without 
change, as published in the Federal Register [59 FR 48780] 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

    1. Accordingly, the interim final rule amending 7 CFR Part 905 
which was published at 59 FR 48780 on September 23, 1994, is adopted as 
a final rule without change.

    Dated: December 9, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-30785 Filed 12-14-94; 8:45 am]
BILLING CODE 3410-02-P