[Federal Register Volume 60, Number 78 (Monday, April 24, 1995)]
[Proposed Rules]
[Pages 20059-20061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9970]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 906 and 944

[Docket No. FV-95-906-1PR]


Oranges Grown in the Lower Rio Grande Valley in Texas and 
Imported Oranges; Proposed Suspension of Regulations for Domestic and 
Imported Oranges

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed suspension of rule.

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SUMMARY: This document invites written comments on a proposal to 
suspend, for the period July 1 through August 31, the handling 
regulations for oranges grown in the Lower Rio Grande Valley in Texas 
and the orange import regulations. Currently, the effective period for 
both domestic and imported oranges is January 1 through December 31 of 
each year. The purpose of the proposed suspension is to remove 
unnecessary handling regulations applicable to shipments of Texas 
oranges for the two month period July and August. The proposed 
suspension of regulations applicable to imported oranges is necessary 
under section 8e of the amended Agricultural Marketing Agreement Act of 
1937.

DATES: Comments must be received by May 15, 1995.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed suspension. Comments must be sent in 
triplicate to the Docket Clerk, Fruit and Vegetable Division, AMS, 
USDA, P.O. Box 96456, room 2523-S, Washington, D.C. 20090-6456, or by 
facsimile at 202-720-5698. Comments should reference the docket number 
and the date and page number of this issue of the Federal Register and 
will be available for public inspection in the Office of the Docket 
Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Specialist, 
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 Belinda G. Garza, McAllen Marketing Field 
Office, USDA/AMS, 1313 East Hackberry, McAllen, TX 78501; telephone: 
210-682-2833.

SUPPLEMENTARY INFORMATION: This proposed suspension is issued under 
Marketing Agreement and Order No. 906 (7 CFR Part 906) regulating the 
handling of oranges and grapefruit [[Page 20060]] 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.''
    This proposed suspension is also issued pursuant to section 8e of 
the Act, which requires the Secretary of Agriculture to issue grade, 
size, quality, or maturity requirements for certain listed commodities 
imported into the United States that are the same as, or comparable to, 
those imposed upon the domestic commodities under Federal marketing 
orders.
    The Department of Agriculture (Department) is issuing this proposed 
suspension in conformance with Executive Order 12866.
    This proposed suspension has been reviewed under Executive Order 
12778, Civil Justice Reform. This proposed suspension is not intended 
to have retroactive effect. This action would not preempt any State or 
local laws, regulations, or policies, unless they present an 
irreconcilable conflict with this proposed suspension.
    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 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 domestic grade, size, quality or maturity 
regulations established under Federal marketing orders.
    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. In addition, there are 
approximately 20 importers of oranges subject to the requirements of 
the orange import requirements. Small agricultural service firms, which 
include handlers and importers, have been defined by the Small Business 
Administration (13 CFR Sec. 121.601) as those having annual receipts of 
less than $5,000,000, and small agricultural producers are defined as 
those whose annual receipts are less than $500,000. The majority of 
these handlers, producers, and importers may be classified as small 
entities.
    Under the marketing order, oranges grown in the Lower Rio Grande 
Valley in Texas are currently subject to a minimum grade requirement of 
U.S. No. 2 and a minimum size requirement of 2\6/16\ inches in 
diameter. These requirements are in effect throughout the year on a 
continuous basis. The grade and size requirements for oranges grown in 
the Lower Rio Grande Valley in Texas are found in Sec. 906.365 (7 CFR 
part 906) under the order. In addition, there are container and pack 
requirements found in Sec. 906.340.
    The Texas Valley Citrus Committee (Committee), the agency 
responsible for local administration of the order, meets prior to and 
during each season to review the handling regulations effective on a 
continuous basis for oranges 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 March 9, 1995, and recommended by a 14 to 1 
vote to relax the effective dates of the regulatory period for oranges 
from continuous to July 15 through August 31, 1995, for one year. 
Committee members limited the relaxation to one year because of 
concerns about imported oranges being in commercial channels after 
August 31, and the need to study the impact of such a change. The 
Committee acknowledged that the Texas orange requirements only need to 
be in effect when there are shipments of Texas oranges.
    The Committee member who voted in opposition to the recommended 
change expressed concern about the potential impact imported oranges 
could have on the marketing of Texas oranges if substandard imports are 
in commercial channels when the Texas orange shipping season begins. 
However, this rule proposes that the quality and size regulations for 
both Texas and imported oranges be in effect when the Texas shipping 
season begins and all fruit handled during the Texas shipping season 
would be subject to those requirements.
    According to the Committee, Texas orange shipments typically begin 
in mid to late September and end in mid to late June. The Texas citrus 
industry has been in a vigorous recovery since the freeze of 1989. 
Prior to the freeze, shipments of oranges during the 1986/87 season 
totaled 1,334,548 cartons, shipments for the 1987/88 season totaled 
2,240,181 cartons, and shipments for the 1988/89 season totaled 
1,220,101 cartons. The 1989/90 shipping season ended in early January 
1990 due to the harsh freeze. There was no commercial production or 
shipments of oranges during the 1990/91 season due to the December 1989 
freeze. Orange shipments were minimal during the 1991/92 season as the 
recovery from the freeze of 1989 was still underway. Shipments for the 
1992/93 season totaled approximately 688,000 cartons and shipments in 
the 1993/94 season approximated 833,000 cartons. The Committee expects 
the 1994/95 season to be an excellent year for orange production and 
sales. A review of 1986/87 to 1993/94 Texas orange shipment data 
revealed that the industry's shipping season consistently runs from 
September through the following June. This pattern was consistent in 
both pre-freeze and post-freeze seasons.
    The Department reviewed the Committee's recommendation and 
determined that the quality and size requirements for Texas oranges 
should be suspended for the period July 1 through August 31, when there 
are no Texas orange shipments. The regulatory period would begin in 
September and end in June. There have been production changes over the 
last five to six seasons. However, as mentioned above, the change in 
production is a result of the freeze of 1989. The change 
[[Page 20061]] in production has not resulted in a change in the 
industry's shipping pattern. The industry's shipping pattern 
consistently begins in September and ends in June. Although shipping 
patterns have not changed to date, in the future there may be changes 
in production and, therefore, we are proposing a suspension. An annual 
evaluation will be conducted to determine the impact of the suspension 
on the Texas orange industry. If it is determined that the suspension 
has been deleterious to the Texas orange industry, necessary 
modifications will be made.
    Minimum grade and size requirements for fresh oranges grown in 
Texas are in effect under Sec. 906.365 (7 CFR 906.365). This action 
proposes suspending the provisions of Sec. 906.365 that apply to 
oranges during the months of July and August.
    Since the grade and size requirements for Texas oranges would be in 
effect during the entire Texas shipping season, this change should not 
have an adverse impact on the Texas orange industry.
    Section 8e of the Act provides that when certain domestically 
produced commodities, including oranges, are regulated under a Federal 
marketing order, imports of that commodity must meet the same or 
comparable grade, size, quality, and maturity requirements. Section 8e 
further provides that whenever two or more marketing orders regulating 
the same agricultural commodity produced in different areas of the 
United States are concurrently in effect, the imports shall be subject 
to the requirements applicable to the commodity produced in the area 
with which the imported commodity is in most direct competition. The 
Secretary has determined that oranges imported into the United States 
are in most direct competition with oranges grown in Texas regulated 
under M.O. No. 906, and has found that the minimum grade and size 
requirements for imported oranges should be the same as those 
established for oranges under M.O. No. 906.
    Currently, imported oranges are subject to minimum grade and size 
requirements under Sec. 944.312 (7 CFR 944.312). These requirements are 
in effect on a continuous basis because domestic oranges are currently 
subject to the minimum grade and size requirements under Marketing 
Order No. 906 on a continuous basis. This rule proposes suspending 
section 944.312(a) for the period July 1 through August 31 indefinitely 
so that it would be effective September 1 through June 30, the same 
time period that is being proposed for the Texas orange regulation.
    According to the Department's Market News Branch, U.S. fresh orange 
imports during the 1993/94 season (beginning November 1) totaled 37.2 
million pounds, up nearly 60 percent from the 1992/93 total. The 
increase is attributable to additional supplies from Australia as 
compared with the prior season. Australia's largest shipments arrive in 
July and August. By comparison, U.S. orange imports averaged 48.3 
million pounds per season from 1988/89 through 1992/93, ranging from a 
low of nearly 19 million pounds to 137.3 million pounds in 1990/91 when 
domestic supplies were reduced following freeze damage to the 
California crop. In both 1992/93 and 1993/94, Australia was the 
principal source of fresh orange imports. Other sources of orange 
imports were the Dominican Republic, whose largest shipments arrive in 
August and September, Mexico, Israel, and Jamaica. In the 1992/93 
season, Australia accounted for 10.1 million pounds, or 43 percent of 
U.S. fresh orange imports and 20.7 million pounds, or 56 percent of the 
U.S. total in 1993/94. Mexico is an important source of orange imports 
during the fall and winter. Imports from Israel are most active during 
the winter, with imports from other countries widely distributed 
throughout the season.
    This rule would result in relaxed import requirements because the 
orange import regulations would not be in effect during the months of 
July and August. This could result in reduced costs to importers. This 
action should not have an adverse impact on the Texas industry, 
however, because its shipping season does not begin until September. 
Domestic producers will not be significantly impacted, since all 
oranges in commercial channels during the domestic shipping season 
would be subject to the same minimum grade and size requirements.
    The purpose of these changes is to assure that applicable quality 
requirements are in place only during such periods as needed by the 
Texas orange industry to provide a consistent supply of oranges of 
acceptable quality to fresh market outlets.
    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.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this proposed rule.
    This proposed rule reflects the Department's appraisal of the need 
to revise the dates of the regulatory period for imported oranges, as 
hereinafter set forth, to effectuate the declared policy of the Act.
    A comment period of 20 days is deemed appropriate because this rule 
would relax requirements currently in effect, and to be of maximum 
benefit it should be in effect by July 1, 1995.

List of Subjects

7 CFR Part 906

    Oranges, Marketing agreements, Reporting and recordkeeping 
requirements.

7 CFR Part 944

    Avocados, Food grades and standards, Grapes, Imports, Kiwifruit, 
Limes, Olives, Oranges.

    For the reasons set forth in the preamble, 7 CFR parts 906 and 944 
are proposed to be amended as follows:

PART 906--ORANGES GROWN IN THE LOWER RIO GRANDE VALLEY IN TEXAS

    1. The authority citation for both 7 CFR parts 906 and 944 
continues to read as follows:

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


Sec. 906.365  [Amended]

    2. In Sec. 906.365, paragraph (a)(7) is added, reading as follows:


Sec. 906.365  Texas Orange and Grapefruit Regulation 34.

    (a) * * *
    (7) Beginning in 1995, this paragraph (a) is suspended each year 
from July 1 through August 31.
* * * * *

PART 944--FRUITS; IMPORT REGULATIONS


Sec. 944.312  [Amended]

    3. In Sec. 944.312, paragraph (a)(3) is added, reading as follows:


Sec. 944.312  Orange import regulation.

    (a) * * *
    (3) Beginning in 1995, this paragraph (a) is suspended each year 
from July 1 through August 31.
* * * * *
    Dated: April 18, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-9970 Filed 4-21-95; 8:45 am]
BILLING CODE 3410-02-P