[Federal Register Volume 60, Number 32 (Thursday, February 16, 1995)]
[Rules and Regulations]
[Pages 8924-8926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3838]



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


DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Parts 905 and 944

[Docket No. FV94-905-4-FIR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida 
and Imported Grapefruit; Relaxation of the Minimum Size Requirement for 
Red Seedless Grapefruit

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 
which relaxed the minimum size requirement for domestic shipments of 
Florida red seedless grapefruit and for red seedless grapefruit 
imported into the United States to 3\5/16\ inches in diameter (size 56) 
through November 12, 1995. This rule enables handlers in Florida and 
importers to continue to ship size 56 red seedless grapefruit for the 
entire 1994-95 season.

EFFECTIVE DATE: March 20, 1995.

FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast 
Marketing Field Office, USDA/AMS, P.O. Box 2276, Winter Haven, Florida 
33883; telephone: 813-299-4770; or 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.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Order No. 905 [7 CFR Part 905], as amended, 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 rule is also issued under section 8e of the Act, which 
provides that whenever specified commodities, including grapefruit, are 
regulated under a Federal marketing order, [[Page 8925]] 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 grapefruit grown in Florida regulated 
under Marketing Order No. 905, and has found that the minimum grade and 
size requirements for imported grapefruit should be the same as those 
established for grapefruit under Marketing Order No. 905.
    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 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.
    There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of import regulations 
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 approximately 110 Florida citrus handlers subject to 
regulation under the marketing order covering oranges, grapefruit, 
tangerines, and tangelos grown in Florida, about 11,970 producers of 
these citrus fruits in Florida, and about 25 grapefruit importers. 
Small agricultural service firms, which include grapefruit handlers and 
importers, have been defined by the Small Business Administration [13 
CFR 121.601] as those whose 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 majority of these handlers, 
importers, and producers may be classified as small entities.
    The order for Florida citrus provides for the establishment of 
minimum grade and size requirements. The minimum grade and size 
requirements are designated 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 Citrus Administrative Committee (committee), which administers 
the order locally, makes recommendations to the Secretary of 
Agriculture as to the grade and size of fruit that should garner 
consumer acceptance. 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.
    The committee met on September 13, 1994, and unanimously 
recommended that the minimum size requirement for domestic shipments of 
fresh red seedless grapefruit be relaxed from size 48 to size 56 for 
the period November 7, 1994, to November 12, 1995. Size 56 (3\5/16\ 
inches diameter) is the minimum size until November 6, 1994. At that 
time, absent this revision of the rules and regulations under the 
order, the minimum size will revert to size 48 (3\9/16\ inches 
diameter).
    Section 905.52, Issuance of regulations, authorizes the committee 
to recommend minimum grade and size regulations to the Secretary. 
Section 905.306 (7 CFR 905.306) specifies minimum grade and size 
requirements for different varieties of fresh Florida grapefruit. Such 
requirements for domestic shipments are specified in Sec. 905.306 in 
Table I of paragraph (a), and for export shipments in Table II of 
paragraph (b).
    Minimum grade and size requirements for grapefruit imported into 
the United States are currently in effect under Sec. 944.106 (7 CFR 
944.106), as reinstated on July 26, 1993 (58 FR 39428, July 23, 1993). 
Export requirements are not changed by this rule.
    In making its recommendation, the committee considered estimated 
supply and current shipments. The committee reports that it expects 
that fresh market demand will be sufficient to permit the shipment of 
size 56 red seedless grapefruit grown in Florida during the entire 
1994-95 season.
    The committee recommended this relaxation in size to enable Florida 
grapefruit shippers to continue shipping size 56 red seedless 
grapefruit to the domestic market. This is consistent with current and 
anticipated demand in those markets for the 1994-95 season, and 
provides for the maximization of shipments to fresh market channels.
    There are several exemption provisions under the order. Handlers 
may ship up to 15 standard packed cartons (12 bushels) of fruit per 
day, and up to two standard packed cartons of fruit per day in gift 
packages which are individually addressed and not for resale under 
these provisions. Fruit shipped for animal feed is also exempt under 
specific conditions. Fruit shipped to commercial processors for 
conversion into canned or frozen products or into a beverage base are 
not subject to the handling requirements.
    This rule reflects the committee's and the Department's appraisal 
of the need to relax the minimum size requirement for red seedless 
grapefruit as specified. This rule has a beneficial impact on 
[[Page 8926]] producers, handlers and importers since it permits 
Florida grapefruit handlers and importers to make available those sizes 
of fruit needed to meet consumer needs consistent with this season's 
crop and market conditions.
    The interim final rule concerning this action was published in the 
November 8, 1994, Federal Register (59 FR 55571), with a 30-day comment 
period ending December 8, 1994. No comments were received.
    Section 8e of the Act provides that when certain domestically 
produced commodities, including grapefruit, are regulated under a 
Federal marketing order, imports of that commodity must meet the same 
or comparable grade, size, quality, and maturity requirements. Since 
this rule relaxes the minimum size requirement under the domestic 
handling regulations, a corresponding change to the import regulations 
is necessary.
    This rule relaxes the minimum size requirements for imported red 
seedless grapefruit to 3\5/16\ inches in diameter (size 56) through 
November 12, 1995, to reflect the relaxation being made under the order 
for grapefruit grown in Florida.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this final rule.
    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 material 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 55571) will tend to 
effectuate the declared policy of the Act.

List of Subjects 7 CFR Parts 905 and 944

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

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

    Accordingly, the interim final rule amending 7 CFR Part 905 which 
was published at 59 55571 on November 8, 1994, is adopted as a final 
rule without change.

PART 944--FRUIT; IMPORT REGULATIONS

    The interim final rule amending 7 CFR Part 944 which was published 
at 59 FR 55571 on November 8, 1994, is adopted as a final rule without 
change.

    Dated: February 8, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-3838 Filed 2-15-95; 8:45 am]
BILLING CODE 3410-02-P