[Federal Register Volume 60, Number 50 (Wednesday, March 15, 1995)]
[Rules and Regulations]
[Pages 13891-13893]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6368]



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 Rules and Regulations
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  Federal Register / Vol. 60, No. 50 / Wednesday, March 15, 1995 / 
Rules and Regulations  

[[Page 13891]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV94-906-4FIR]


Oranges and Grapefruit Grown in the Lower Rio Grande Valley in 
Texas; Revision of Container and Container Pack Requirements and Rules 
and Regulations for Special Purpose Shipments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, with appropriate modifications, the provisions of an 
interim final rule which revised container requirements and added a new 
container to those authorized for use by handlers of Texas citrus. This 
final rule continues a relaxation of pack requirements by requiring 
containers to have at least one-third Texas citrus by volume, rather 
than 50 percent citrus by count. This rule allows for more efficient 
use of containers and provides handlers with more flexibility in 
packing mixed packs.

EFFECTIVE DATE: April 14, 1995.

FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, Room 2523-S, Washington, D.C. 20090-6456, telephone: (202) 
720-2431; or Belinda G. Garza, McAllen Marketing Field Office, Fruit 
and Vegetable Division, AMS, USDA, 1313 East Hackberry, McAllen, Texas 
78501; telephone: (210) 682-2833.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 906 [7 CFR Part 906] regulating the handling of 
oranges and grapefruit grown in the Lower Rio Grande Valley in Texas, 
hereinafter referred to as the order. The agreement and order are 
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 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. Such 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 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 rule 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 approximately 15 handlers of oranges and grapefruit 
regulated under the marketing order each season and approximately 750 
orange and grapefruit producers in South Texas. 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. The majority of these handlers and 
producers may be classified as small entities.
    Section 906.40(d) of the order authorizes the Secretary to fix the 
size, weight, capacity, dimensions, or pack of the container or 
containers which may be used in the packaging, transportation, sale, 
shipment, or other handling of Texas oranges or grapefruit. Consistent 
with this authority, Sec. 906.340 of the order's rules and regulations 
specifies the containers that may be used by Texas citrus handlers. 
These containers include cardboard cartons; mesh, poly, and vexar bags; 
and a number of master or bulk containers. Additionally, experimental 
containers may be approved by the Texas Valley Citrus Committee 
(committee), the agency responsible for local administration of the 
order. The handling of each lot of fruit in such test containers is 
subject to prior committee approval and is under the supervision of the 
committee.
    The committee met on August 18, 1994, and unanimously recommended 
that the container requirements be revised. The recommended changes 
were to (1) revise the inside dimension specifications of two 
authorized master containers; (2) eliminate certain restrictions on the 
packing of mesh or poly bags; and (3) add a new fiberboard display bin 
to the list of approved containers. These changes were included in an 
interim final rule which became effective December 9, 1994 [59 FR 
63691].
    Two of the containers authorized for use prior to issuance of the 
interim final rule were (1) closed fiberboard cartons with inside 
dimensions of 20 inches in length by 13\1/4\ inches in width by 9\3/4\ 
to 10\3/4\ inches in depth, and (2) fiberboard cribs with dimensions of 
46 inches in length by 38 inches width by 24 inches high. These 
containers were authorized, respectively, in subparagraphs (iii) and 
(viii) of Sec. 906.340(a)(1). They were used as master containers for 
shipping bags of fruit or for shipping fruit in bulk. [[Page 13892]] 
    In recent seasons, handlers have used experimental containers with 
different dimensions than those authorized under Sec. 906.340(a). The 
use of these containers has been successful, and, thus, the committee 
recommended that the dimensions specified for these two containers be 
revised to provide for more flexibility in packing Texas citrus. 
Specifically, subparagraph (iii) of Sec. 906.340(a)(1) was revised to 
specify inside dimensions for closed fiberboard containers of 20 inches 
in length by 13\1/4\ inches in width by 9\3/4\ to 13 inches in depth. 
The revised dimensions for the fiberboard crib authorized by 
Sec. 906.340(a)(1)(viii) are 46 to 47\1/2\ inches in length by 37 to 38 
inches in width by 24 inches in depth. These revisions enable handlers 
to use a wider variety of containers without having to receive prior 
committee approval or to use such containers under the committee's 
supervision.
    Section 906.340 authorizes a number of mesh, poly, and vexar bags 
that may be used in packing Texas citrus, and, prior to issuance of the 
interim final rule specified the master containers that can be used to 
ship these bags of fruit. For example, mesh type bags having a capacity 
of 10 pounds of fruit could only be packed in closed fiberboard cartons 
with inside dimensions of 20 inches by 13\1/4\ inches by 9\3/4\ to 
10\3/4\ inches. The committee recommended that such restrictions be 
eliminated to permit the industry to pack any authorized bag in any 
approved master container. This revision provides handlers with 
additional flexibility in packing oranges and grapefruit without having 
to follow the procedures governing the use of experimental containers. 
This rule maintains the revision to subparagraphs (iii), (iv), (vii), 
(viii), (ix), and (x) of Sec. 906.340(a)(1). The committee's 
recommendation that the master containers utilized experimentally 
during the past few seasons become permanent was implemented in the 
interim final rule.
    The committee's recommendation for a new fiberboard display bin was 
added to the list of approved containers and continues in effect. The 
new fiberboard display bin is being successfully used by the Florida 
citrus industry. The high-graphic bulk bin works as an in-store 
advertisement, increasing traffic and volume movement in the produce 
department. Because the bin is vented, the fruit holds up better during 
shipping. The bin can be shipped on pallets or ``slip'' boards. By 
adding these containers which were previously approved for experimental 
use to the permanent list of containers, there is no longer a 
requirement that each lot of fruit shipped in such containers receive 
prior approval from the committee.
    The interim final rule added subparagraph (xi) to 
Sec. 906.340(a)(1) to authorize the use of this container. 
Subparagraphs (ix), (x) and (xi) of Sec. 906.340(a)(1) are 
redesignated, respectively, as subparagraphs (x), (xi) and (xii).
    Section 906.42 authorizes the Secretary to modify, suspend, or 
terminate regulations based upon recommendations and information 
submitted by the committee, or other available information pursuant to 
Secs. 906.34, 906.40, 906.45, or any combination thereof, in order to 
facilitate the handling of fruit.
    Consistent with Sec. 906.42, Sec. 906.120 of the order's rules and 
regulations provides that oranges and/or grapefruit mixed with other 
types of fruit may be handled exempt from container and pack 
regulations, subject to certain conditions. One of those conditions 
prior to issuance of the interim final rule, was that the oranges and/
or grapefruit constitute at least 50 percent by count of the contents 
of any container. The rule continues to allow handlers to pack \1/3\ 
Texas citrus by volume rather than 50 percent by count as authorized in 
Sec. 906.120(c)(4)(ii). This change provided handlers with the 
flexibility to pack a variety of products (e.g., pecans, jalapeno 
jelly, Washington apples, avocadoes, etc.) in the mixed packs. The 
committee recognized the need to specify that mixed packs contain at 
least \1/3\ Texas citrus by volume. The committee believes that the 
change will allow the Texas citrus industry to improve producer 
returns.
    The Department's opinion is that specifying ``Texas'' is redundant. 
As a result the Department did not include the term in the revision of 
Sec. 906.120(c)(4)(ii).
    The interim final rule concerning this action was published in the 
December 9, 1994, Federal Register [59 FR 63691], with a 30-day comment 
period ending January 9, 1995.
    One comment was received from Ms. Darlene Barter, manager of the 
committee. Ms. Barter suggested that the revision to 
Sec. 906.120(c)(4)(ii) in the interim final rule should specify ``Texas 
citrus.'' The Department's position is that the industry will be better 
served by stating ``grown in the production area'' rather than stating 
``Texas citrus''. This will encourage handlers to ship oranges and 
grapefruit grown in the Lower Rio Grande Valley. While citrus is well 
defined in the order, the Department agrees that there is a need for 
additional clarity in the order's handling regulations. The best way to 
improve the clarity of the handling regulations is by stating ``grown 
in the production area''. While Ms. Barter's request is not accepted, a 
change in the regulation for clarity will be incorporated.
    The information collection requirements contained in the referenced 
sections have been previously approved by the Office of Management and 
Budget (OMB) under the provisions of 44 U.S.C. chapter 35 and have been 
assigned OMB number 0581-0068 for Texas oranges and grapefruit.
    There is no reporting burden on handlers of oranges and grapefruit 
who have been using experimental containers because no application is 
required.
    Based on the above, the Administrator of the AMS has determined 
that this action will not have a significant economic impact on a 
substantial number of small entities.
    After consideration of all relevant matter presented, including the 
information and recommendations submitted by the committee and other 
available information, it is hereby found that this rule as hereinafter 
set forth will tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 906

    Grapefruit, Marketing agreements and Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR Part 906 is 
amended as follows:

PART 906--[AMENDED]

    1. The authority citation for 7 CFR Part 906 continues to read as 
follows:

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

Sec. 906.120  Fruit exempt from regulations.

    2. Section 906.120(c)(4) is revised to read as follows:
* * * * *
    (c) * * *
    (4) Oranges and grapefruit grown in the production area may be 
handled exempt from container and pack regulations issued pursuant to 
Sec. 906.40(d), under the following conditions:
    (i) Such oranges and/or grapefruit grown in the production area are 
mixed with other types of fruit;
    (ii) Such oranges and/or grapefruit grown in the production area 
constitute at least one-third by volume of the contents of any 
container, and any such container is not larger than a \7/10\ bushel 
carton.
    (iii) Such grapefruit grown in the production area grade at least 
U.S. No. [[Page 13893]] 1, and such oranges grown in the production 
area grade at least U.S. Combination (with not less than 60 percent, by 
count, of the oranges in any lot grading at least U.S. No.1).
* * * * *
    Dated: March 9, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-6368 Filed 3-14-95; 8:45 am]
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