[Federal Register Volume 61, Number 88 (Monday, May 6, 1996)]
[Proposed Rules]
[Pages 20188-20189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11154]



 ========================================================================
 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. 88 / Monday, May 6, 1996 / Proposed 
Rules  

[[Page 20188]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 958

[FV96-958-1PR]


Onions Grown in Certain Designated Counties in Idaho, and Malheur 
County, Oregon, and Imported Onions; Modification of Size Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would change the ``repacker/prepacker'' 
size designations for all varieties of onions except white or red 
varieties by increasing the minimum diameter from 1\1/2\ inches to 1\3/
4\ inches, and the maximum diameter from 2\1/2\ inches to 2\3/4\ inches 
for onions in this size category. Recent trends in buyer preference 
reflect an increasing demand for larger size onions in the ``repacker/
prepacker'' category. This proposed rule is intended to benefit 
producers and handlers by increasing their flexibility and efficiency 
in the packaging of ``repacker/prepacker'' size onions. As provided 
under section 8e of the Agricultural Marketing Agreement Act of 1937, 
the proposed change to the minimum size requirement would also apply to 
all imported onions except white or red varieties.

DATES: Comments must be received by June 5, 1996.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, room 2523, South 
Building, P.O. Box 96456, Washington, D.C. 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: Robert J. Curry, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, 1220 SW Third Avenue, room 369, 
Portland, Oregon 97204-2807; telephone: (503)326-2724; FAX: (503)326-
7440; or Robert F. Matthews, Marketing Order Administration Branch, 
Fruit and Vegetable Division, AMS, USDA, room 2523, South Building, 
P.O. Box 96456, Washington, D.C. 20090-6456; telephone: (202)690-0464; 
FAX: (202)720-5698.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing 
Agreement No. 130 and Marketing Order No. 958 (7 CFR Part 958), both as 
amended, regulating the handling of onions grown in certain designated 
counties in Idaho and Malheur County, Oregon. The marketing agreement 
and marketing 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 rule, which would also affect the minimum size 
requirements for all varieties of imported onions, except white or red 
varieties, is also issued pursuant to section 8e of the Act. The 
provisions of section 8e and the onion import regulations are discussed 
later in this proposed rule.
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This proposal is not intended to have retroactive 
effect. This proposed 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 request 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 proceedings which must be exhausted 
prior to any judicial challenge to the provisions import regulations 
issued under section 8e of the act.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), 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 currently 34 handlers subject to regulation under the 
marketing order and approximately 550 onion producers in the regulated 
production area. In addition, at least 148 importers of onions are 
subject to import regulations and would be affected by this proposed 
rule.
    Small agricultural service firms have been defined by the Small 
Business Administration (13 CFR 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 handlers and producers of Idaho-Eastern Oregon onions may 
be classified as small entities. The majority of importers may also be 
classified as small entities.
    Pursuant to authority contained in section 958.51 of the marketing 
order, the Idaho-Eastern Oregon Onion Committee (Committee), at its 
November 16, 1995, meeting, unanimously recommended changing the 
minimum and maximum sizes set forth in section 958.328(a)(3)(ii) of the 
handling regulation. For this size

[[Page 20189]]

category, the Committee recommended increasing the minimum diameter 
from 1\1/2\ inches to 1\3/4\ inches, and the maximum diameter from 2\1/
2\ inches to 2\3/4\ inches for all onions except white or red varieties 
produced and handled in the production area. Yellow onions are the 
major group produced in the regulated production area.
    This proposed rule would modify a marketing order size category 
that is recognized by the onion industry as ``repacker'' or 
``prepacker'' size onions. Onions in this size category are generally 
packed and shipped in 50-pound sacks for later repacking into various 
consumer packs.
    The U.S. Standards for Grades of Onions were recently amended to 
include a classification for ``repacker/prepacker'' size onions (60 FR 
46976, September 8, 1995), effective October 10, 1995. Section 51.2836 
of the U.S. Standards defines such onions as those ranging from a 
minimum diameter of 1\3/4\ inches to a maximum diameter of 3 inches. 
The U.S. Standards also specify that not more than 5 percent of the 
onions in a lot may be undersized and that not more than 10 percent may 
be oversized.
    Recent trends in buyer preference reflect an increasing demand for 
larger size onions in the ``repacker/prepacker'' category. The 
Committee reports that the current maximum diameter of 2\1/2\ inches 
for this size category is too restrictive and has resulted in a high 
percentage of onions being packed in a different category due to 
oversize. This has resulted in fewer ``repacker/prepacker'' size onions 
being available for market. With an increase in the maximum allowable 
diameter to 2\3/4\ inches for ``repacker/prepacker'' size onions, the 
Committee expects the quantity of such onions available for market to 
increase. The Committee recommended an increase to 2\3/4\ inches rather 
than 3 inches, the upper limit of the size range specified in the U.S. 
Standards, because the smaller size is more suitable for this industry 
and its customers. In addition to the proposed increase in the maximum 
diameter for onions in this category, the Committee recommended that 
the minimum diameter be increased from 1\1/2\ inches to 1\3/4\ inches 
to be the same as the recently amended U.S. Standards.
    Any costs to handlers and producers attributable to this proposed 
regulation, if adopted, are expected to be offset by the benefits 
derived from improved returns. The proposed modification would increase 
the volume of onions marketed in this size category, and is expected to 
result in higher returns for producers and handlers.
    Section 8e of the Act requires that when certain domestically 
produced commodities, including onions, are regulated under a Federal 
marketing order, imports of that commodity must meet the same or 
comparable grade, size, quality, or maturity requirements. Section 8e 
also provides that whenever two or more marketing orders regulating the 
same commodity produced in different areas of the United States are 
concurrently in effect, the Secretary shall determine which of the 
areas produces the commodity in more direct competition with the 
imported commodity. Imports must then meet the requirements established 
for the particular area.
    Grade, size, quality, and maturity regulations have been issued 
regularly under both Marketing Order 958 and Marketing Order 959, which 
regulates the handling of onions grown in South Texas. The current 
import regulation (7 CFR 980.117) specifies that import requirements 
for onions are to be based on the seasonal categories of onions grown 
in both marketing order areas. The import regulations specify that 
imported onions must meet the requirements of Marketing Order 958 
during the June 16 through March 9 period each season and Marketing 
Order 959 through the remainder of the year. Rulemaking is now in 
progress that would, if approved, change the beginning date of 
Marketing Order 958 requirements to June 5 (61 FR 4941; February 9, 
1996). Current import regulations also provide that all varieties of 
imported onions, except for white varieties, must be a minimum of 1\1/
2\ inches in diameter. This proposal would change the import 
requirements for the period June 16 through March 9 each marketing year 
to provide that all varieties of onions except white or red varieties 
shall be a minimum of 1\3/4\ inches in diameter. While no changes are 
required in the language of section 980.117, all imported onions other 
than white or red varieties would be required to meet the minimum size 
requirement proposed herein.
    Based on available information, the Agricultural Marketing Service 
has determined that the issuance of this proposed rule would not have a 
significant economic impact on a substantial number of small entities.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments received within the 
comment period will be considered before a final determination is made 
on this matter.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this proposed rule.

List of Subjects in 7 CFR Part 958

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 958 is 
proposed to be amended as follows:

PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND 
MALHEUR COUNTY, OREGON

    1. The authority citation for 7 CFR part 958 continues to read as 
follows:

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

    2. Section 958.328 is amended by revising paragraph (a)(3)(ii) to 
read as follows:


Sec. 958.328  Handling Regulation.

* * * * *
    (a) * * *
    (3) * * *
    (ii) U.S. No. 1, 1\3/4\ inches minimum to 2\3/4\ maximum diameter; 
or
* * * * *
    Dated: April 30, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-11154 Filed 5-3-96; 8:45 am]
BILLING CODE 3410-02-P