[Federal Register Volume 61, Number 90 (Wednesday, May 8, 1996)]
[Proposed Rules]
[Pages 20754-20756]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11460]



 ========================================================================
 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. 90 / Wednesday, May 8, 1996 / 
Proposed Rules  

[[Page 20754]]



DEPARTMENT OF AGRICULTURE


Agricultural Marketing Service

7 CFR Parts 911 and 944

[Docket No. FV96-911-2PR]

Limes Grown in Florida and Imported Limes; Change in Regulatory 
Period

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on proposed changes to the 
regulatory period currently prescribed under the lime marketing order 
and the lime import regulations. The marketing order regulates the 
handling of limes grown in Florida and is administered locally by the 
Florida Lime Administrative Committee (committee). This rule would 
modify language in both the domestic and import regulations to change 
the regulatory period to January 1 through May 31, from its current 
continuous, year round, implementation. This proposed rule is in 
response to changes in the market, rising costs of production and the 
cost of replanting in the aftermath of Hurricane Andrew. By reducing 
the regulatory period and its associated costs, this rule should 
decrease industry expenses. The changes in import requirements are 
necessary under section 8e of the Agricultural Marketing Agreement Act 
of 1937.

DATES: Comments must be received by June 7, 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 Number (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 available for 
public inspection in the Office of the Docket Clerk during regular 
business hours.

FOR FURTHER INFORMATION CONTACT: Aleck Jonas, Southeast Marketing Field 
Office, Marketing Order Administration Branch, F&V, AMS, USDA, P.O. Box 
2276, Winter Haven, Florida 33883; telephone: (941) 299-4770; or 
Britthany Beadle, Marketing Order Administration Branch, F&V, AMS, 
USDA, room 2522-S, P.O. Box 96456, Washington, DC 20090-6456: 
telephone: (202) 720-3923.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing 
Agreement and Marketing Order No. 911 (7 CFR part 911), as amended, 
regulating the handling of limes, 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 proposed rule is also issued under section 8e of the Act, 
which provides that whenever certain specified commodities, including 
limes, are regulated under a Federal marketing order, 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.
    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 proposed 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.
    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 an action is filed not 
later than 20 days after 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 Agricultural Marketing Service (AMS) has 
considered the economic impact of this proposed 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. Import regulations issued under 
the Act are based on those established under Federal marketing orders.
    There are approximately 10 handlers subject to regulation under the 
order and about 30 producers of Florida limes. There are approximately 
35 importers of limes. Small agricultural service firms, which include 
lime 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, producers, and importers may be classified as small entities.
    This proposed rule invites comments on a change to the regulatory 
period currently prescribed under the Florida lime marketing order. 
This rule would modify language in the order's rules and regulations to 
change the regulatory period from its current continuous, year round, 
implementation to January 1 through May 31. This change was recommended 
by the committee on a vote of 6 supporting and 4 against.
    Section 911.48 of the lime marketing order provides authority to 
issue regulations establishing specific pack,

[[Page 20755]]

container, grade and size requirements. These requirements are 
specified under Secs. 911.311, 911.329 and 911.344. Section 911.51 
requires inspection and certification that these requirements are met. 
Currently, there is no regulatory period stated in the order, and the 
regulations are applied on a continuous year-round basis.
    There is general agreement in the industry for the need to reduce 
costs and increase grower returns under the current market conditions. 
The committee made this recommendation to decrease industry expenses by 
reducing the regulatory period and its associated costs. Prior to 
Hurricane Andrew, there were approximately 6,500 producing acres of 
limes in the production area. Currently, there are approximately 1,500 
acres of producing lime trees in the production area. Growers are 
expending approximately $2,500 per acre to plant new groves and replant 
lost ones. They are also spending approximately $1,500 per acre per 
year to maintaining new groves of young trees which will not produce 
fruit for several years, thus, giving no return for investment. During 
the 1991-1992 season prior to Hurricane Andrew, assessments were 
collected on 1,682,677 bushels. In the 1993-1994 and the 1994-1995 
seasons after the storm, assessments were collected on 228,455 bushels 
and 283,977 bushels respectively. Lost income from reduced volume and 
the costs of replanting and maintaining groves, with no immediate 
monetary return, has caused the industry to seek cost saving measures.
    Historically, the June 1 through December 31 time period is a time 
when fruit is plentiful, prices are low, and the overall quality of the 
crop is good for both domestic and imported supplies. The committee 
maintains that under these abundant and good quality fruit conditions, 
competition and market demand will keep quality standards high. 
Conversely, during the time period, January 1 through May 31, past 
seasons have shown that for both domestic and imported fruit, skins are 
thicker, the juice content is lower and supplies of fruit are limited. 
Because the temptation to ship poor quality is greater under these high 
demand and low supply conditions, the committee believes regulations 
are necessary to prevent poor quality fruit from entering and damaging 
the lime market. Therefore, the committee believes that for the period 
June 1 through December 31, pack, container, grade and size regulations 
can be ended. Competition under good quality and high supply conditions 
should protect the consumer from poor quality fruit entering the market 
during the proposed deregulated period. The application of regulations 
from January 1 through May 31, will insure uniform quality throughout 
the year.
    Growers, handlers and importers should benefit from the reduced 
costs of no regulations, such as no inspection fees during the 
deregulated period. Committee expenses should also be reduced by 
requiring fewer meetings and less compliance monitoring. Reporting 
requirements are not affected by this change and will continue to be 
collected year-round.
    One alternative to the proposed rule was to leave the regulations 
in place year-round. This alternative was rejected by the committee 
because the need to take some action was considered necessary under the 
current market conditions. It was argued that when these regulations 
were put in place, the quality of both the domestic and imported lime 
supply varied greatly. Over the years, improved agricultural practices 
have produced a consistent high quality lime supply. This is 
particularly true during the June through December time period. The 
majority of committee members believe that the regulations are 
unnecessary when there is such a large supply of high quality fruit.
    Another alternative raised was to terminate the marketing order. 
Although seriously considered, committee members rejected the idea 
under arguments that during the January through May time period when 
supplies are reduced and juice content of all limes is lower, poor 
quality fruit could enter the market. Consumer dissatisfaction with 
poor quality limes could lead to product rejection and substitution 
with lemons, causing a lost market share. This proposed rule represents 
a compromise of the two alternatives presented. The committee believes 
that this change will provide the consumer with quality fruit 
throughout the year, while reducing industry costs.
    Section 8e of the Act provides that when certain domestically 
produced commodities, including limes, 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 would change the regulatory period under the domestic handling 
regulations, a corresponding change to the import regulations must also 
be considered.
    Minimum grade and size requirements for limes imported into the 
United States are currently in effect under Sec. 944.209 (7 CFR 
944.209). This proposed rule would modify language in the import 
regulations to change the regulatory period from its current 
continuous, year round, implementation to January 1 through May 31. 
This rule would result in relaxed import requirements because the lime 
import regulations would not be in effect during the months of June 
through December. This could result in reduced costs to importers.
    Mexico is the largest importer of limes into the United States. 
During the 1994-95 season, Mexico imported 6,075,685 bushels into the 
United States, while all other import sources shipped a combined total 
of 201,053 bushels during the same time period. The majority of Mexican 
imports enter the United States between June 1 and December 31, the 
proposed deregulated period covered in this rule.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this proposed rule, 
as it pertains to limes imported into the United States.
    Based on available information, the Administrator of the AMS has 
determined that this action 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 timely received will be 
considered before a final determination is made on this matter.

List of Subjects

7 CFR Part 911

    Limes, Marketing agreements, Reporting and recordkeeping 
requirements.

7 CFR Part 944

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

    For the reasons set forth in the preamble, 7 CFR parts 911 and 944 
are proposed to be amended as follows:
    1. The authority citation for 7 CFR part 911 continues to read as 
follows:

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

PART 911--LIMES GROWN IN FLORIDA


Sec. 911.311  [Amended]

    2. In Sec. 911.311, paragraph (a), introductory text, is amended by 
removing the words ``No handler'' and adding in its place the words 
``From January 1 through May 31 of each season, no handler''.

[[Page 20756]]

Sec. 911.329  [Amended]

    3. In Sec. 911.329, paragraph (a) is amended by removing the words 
``No handler'' and adding in its place the words ``From January 1 
through May 31 of each season, no handler''.


Sec. 911.344  [Amended]

    4. In Sec. 911.344, paragraph (a), is introductory text, is amended 
by removing the words ``No handler'' and adding in its place the words 
``From January 1 through May 31 of each season, no handler''

PART 944--FRUITS, IMPORT REGULATIONS

    5. In Sec. 944.209, paragraph (a) is revised to read as follows:


Sec. 944.209  Lime Import Regulation 10.

    (a) Applicability to imports. Pursuant to section 8e of the act and 
Part 944-Fruits; Import Regulations, the importation into the United 
States from January 1 through May 31 of any limes is prohibited unless 
such limes meet the minimum grade and size requirements specified in 
Sec. 911.344 Florida Lime Regulation 43.
* * * * *
    Dated: May 2, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-11460 Filed 5-7-96; 8:45 am]
BILLING CODE 3410-02-P