[Federal Register Volume 61, Number 69 (Tuesday, April 9, 1996)]
[Proposed Rules]
[Pages 15734-15735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8718]



 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 61, No. 69 / Tuesday, April 9, 1996 / 
Proposed Rules  

[[Page 15734]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 999

[Docket No. FV96-999-1PR]


Specialty Crops; Import Regulations; Removal of Medjhool Dates 
From Import Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposal invites comments on removing the Medjhool 
variety of dates from all import requirements established under the 
Agricultural Marketing Agreement Act of 1937. Currently, whenever 
grade, size, quality, or maturity requirements are in effect for dates 
under a domestic marketing order, imported dates must meet the same or 
comparable requirements. A marketing order is in effect for California 
dates and specifies quality requirements for four varieties of dates. 
However, all varieties of dates are currently subject to import 
requirements. The Department of Agriculture (Department) has received 
requests from representatives of an importer of Israeli dates and the 
Embassy of Israel to remove Medjhool dates from import requirements. 
The Medjhool date is a unique variety of date, commanding a premium 
price, and is believed to not be in direct competition with the 
varieties covered under the marketing order. Thus, the Department is 
issuing this proposed rule to solicit public comment on removing 
Medjhool dates from import requirements.

DATES: Comments must be received by June 10, 1996.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent in triplicate to the 
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S, 
P.O. Box 96456, Washington, DC 20090-6456, Fax # (202) 720-5698. All 
comments should reference the docket number and the date and page 
number of this issue of the Federal Register and will be made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours.

FOR FURTHER INFORMATION CONTACT: Maureen Pello, California Marketing 
Field Office, Marketing Order Administration Branch, F&V, AMS, USDA, 
2202 Monterey Street, suite 102B, Fresno, California 93721; telephone: 
(209) 487-5901, Fax # (209) 487-5906; or Mark Kreaggor, Marketing 
Specialist, Marketing Order Administration Branch, F&V, AMS, USDA, room 
2522-S, P.O. Box 96456, Washington, DC 20090-6456: telephone: (202) 
720-2431, Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This proposal is issued under section 8e of 
the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 
601-674), hereinafter referred to as the ``Act.'' Section 8e provides 
that whenever certain specified commodities, including dates (other 
than dates for processing), are regulated under a Federal marketing 
order, imports of those commodities must meet the same or comparable 
grade, size, quality, and maturity requirements as those in effect for 
the domestically produced commodities.
    The Department is issuing this rule in accordance with Executive 
Order 12866.
    This proposal has been reviewed under Executive Order 12778, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This proposal will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    There are no administrative proceedings 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 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.
    Import regulations issued under section 8e of the Act are based on 
regulations established under Federal marketing orders for fresh 
fruits, vegetables, and specialty crops, like dates. Thus, import 
regulations also have a small entity orientation and impact both small 
and large business entities in a manner comparable to rules issued 
under such marketing orders.
    There are approximately 35 importers of dates in the United States. 
Three of those are importers of Medjhool dates and would be affected by 
this rule. Small agricultural service firms, which include importers of 
dates, have been defined by the Small Business Administration (13 CFR 
121.601) as those having annual receipts of less than $5,000,000. The 
majority of date importers may be classified as small entities.
    This proposal invites comments on removing the Medjhool variety of 
dates from all import requirements established under section 8e of the 
Act. The Department is initiating this action based on requests 
received from representatives of importers of Israeli dates and the 
Embassy of Israel as well as its own review of the current situation 
with respect to domestic date production and date imports.
    As previously mentioned, section 8e of the Act requires that 
whenever grade, size, quality, or maturity requirements are in effect 
for dates under a domestic marketing order, imported dates (other than 
dates for processing) must meet the same or comparable requirements. A 
marketing order has been in effect for California dates since 1955 (7 
CFR Part 987). The marketing order initially specified quality 
requirements for three varieties of California dates--Deglet Noor, 
Zahidi, and Khadrawy. In 1962, the order was amended to add the Halawy 
variety of dates.
    Also in 1962, section 8e of the Act was amended to cover dates 
(other than dates for processing). Imported dates for processing are 
not covered by section 8e and are not subject to grade, size, quality, 
and maturity import requirements. At the time the import regulation was 
initiated, it was determined that all varieties of imported

[[Page 15735]]
packaged dates and dates for packaging and dates in retail packages 
would compete with dates produced domestically. Thus, since that time, 
imported packaged dates and dates for packaging for sale in the retail 
market have been required to meet quality requirements comparable to 
those specified under the California date marketing order and the 
import regulation currently applies to all varieties of dates.
    The Department recently received requests from representatives of 
an importer of Israeli dates and the Embassy of Israel to remove the 
Medjhool variety of dates from the import regulation. The 
representatives of the Israeli importer expressed concerns that 
domestic Medjhool dates are not subject to quality requirements while 
all imported dates are subject to specific requirements.
    The Medjhool date is a unique variety--a much larger date than 
other varieties and is thus easily distinguishable. Given this unique 
characteristic, the Medjhool date commands a premium price and is 
believed to not be in direct competition with the four varieties of 
dates covered under the marketing order.
    In looking at the domestic market, Medjhool dates were not produced 
in significant quantities in the United States when the marketing order 
was promulgated in 1955. Since that time, plantings of Medjhool dates 
have increased to account for over 15 percent of the bearing acreage of 
dates in California. In comparing the production of the Medjhool 
variety of dates with the four varieties covered under the marketing 
order, Medjhool dates now comprise about 20 percent (or 9 million 
pounds) of the total production (about 45 million pounds). With the 
increase in Medjhool production in recent years, the domestic date 
industry has considered amending the marketing order to cover Medjhool 
dates. However, at this time, no formal action has been taken and 
domestic Medjhools remain unregulated.
    In looking at data regarding imported dates, in the 1960's when the 
date import regulation was initiated, few if any Medjhool dates were 
imported into the United States. At that time most of the imported 
dates came from Iraq and Iran and were of the Sayir variety. Sayir 
dates and other varieties imported into this country are similar in 
appearance to the Deglet Noor, Zahidi, Halawy and Khadrawy varieties 
regulated under the marketing order. During the past five years (1990-
1994), about 13 million pounds of dates were imported into this country 
annually, mostly coming from Pakistan (over 65 percent). Medjhools 
account for a relatively small percentage of imported dates, with most 
of the imported Medjhools coming from Mexico and a small amount coming 
from Israel. Mexican and Israeli dates account for about 3 percent and 
4 percent, respectively, of total U.S. date imports. Of the total date 
import inspections from Mexico over the last 5 years, about 54 percent 
were of the Medjhool variety. About 1 percent of the date import 
inspections from Israel during this same period were Medjhools.
    In response to these requests, the Department is issuing this 
proposed rule to provide interested persons the opportunity to comment 
on removing Medjhool dates from import requirements. All other 
varieties of imported dates would continue to be subject to import 
requirements. Such other varieties are not as easily distinguishable as 
Medjhools and are believed to be in direct competition with the 
varieties regulated under the marketing order.
    Thus, it is proposed that section 999.1 of the Code of Federal 
Regulations (CFR), which specifies the import regulation for dates, be 
amended to exclude Medjhool dates.
    To exclude dates of the Medjhool variety from the terms of the date 
import regulations, a new definition for dates is added to paragraph 
(a). The new definition defines ``dates'' as all varieties of dates, 
except dates of the Medjhool variety.
    In addition, minor changes in the current definitions for the terms 
``Fruit and Vegetable Division'', ``USDA inspector'', and 
``Importation'' are proposed to be made to reflect changes in the names 
of Federal agencies referred to in the definitions.
    The definition of ``Fruit and Vegetable Division'' refers to the 
``Consumer and Marketing Service''. That agency is now called the 
``Agricultural Marketing Service''. The definition of ``USDA 
inspector'' refers to inspectors of the ``Processed Products 
Standardization and Inspection Branch''. The name of the Branch is now 
the ``Processed Products Branch''. Finally, the definition of 
``Importation'' references the ``United States Bureau of Customs''. 
This agency is now called the ``United States Customs Service''.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with issuance of this proposed rule.
    This rule would relax requirements currently in effect for date 
importers and would not impose any additional costs on affected 
importers. Thus, the Administrator of the AMS has determined that this 
action would not have a significant economic impact on a substantial 
number of small entities.
    The information collection requirements under the date import 
regulation have been previously approved by the Office of Management 
and Budget (OMB) under the provisions of the Paperwork Reduction Act of 
1995 (Pub. L. 104-13) and have been assigned OMB number 0581-0077.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

List of Subjects in 7 CFR Part 999

    Dates, Filberts, Food grades and standards, Imports, Nuts, Prunes, 
Raisins, Reporting and recordkeeping requirements, Walnuts.

    For the reasons set forth in the preamble, 7 CFR part 999 is 
proposed to be amended as follows:
    1. The authority citation for 7 CFR part 999 continues to read as 
follows:

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

PART 999--SPECIALTY CROPS; IMPORT REGULATIONS

    2. In Sec. 999.1, paragraphs (a) (1) through (10) are redesignated 
as paragraphs (a) (2) through (11), a new paragraph (a) (1) is added, 
and new paragraphs (a) (8), (9), and (11) are revised to read as 
follows:


Sec. 999.1  Regulation governing the importation of dates.

    (a) Definitions. (1) Dates means all varieties of dates, except 
dates of the Medjhool variety.
* * * * *
    (8) Fruit and Vegetable Division means the Fruit and Vegetable 
Division of the Agricultural Marketing Service, United States 
Department of Agriculture, Washington, D.C. 20250.
    (9) USDA inspector means an inspector of the Processed Products 
Branch, Fruit and Vegetable Division or any duly authorized employee of 
the USDA.
* * * * *
    (11) Importation means release from the custody of the United 
States Customs Service.
* * * * *
    Dated: April 2, 1996.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-8718 Filed 4-8-96; 8:45 am]
BILLING CODE 3410-02-P