[Federal Register Volume 61, Number 119 (Wednesday, June 19, 1996)]
[Rules and Regulations]
[Pages 31004-31006]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15627]



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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Parts 911 and 915

[Docket No. FV96-911-4IFR]


Limes and Avocados Grown in Florida; Relaxation of Container 
Marking Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule relaxes the container marking 
requirements for limes and avocados packed under the Federal marketing 
orders for limes and avocados grown in Florida. This relaxation reduces 
the number of lime and avocado containers required to be marked with 
the lot stamp number. This rule reduces handling costs and provides 
more flexibility in lime and avocado packing operations.

DATES: Effective June 20, 1996; comments received by July 19, 1996 will 
be considered prior to issuance of a final rule.

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 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: Aleck Jonas, Marketing Specialist, 
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 Specialist, 
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 rule is issued under Marketing Order 
Nos. 911 and 915 (7 CFR parts 911 and 915), as amended, regulating the 
handling of limes and avocados grown in Florida, hereinafter referred 
to as the ``orders.'' These orders 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 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 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.
    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.
    There are approximately 10 handlers of limes and 65 handlers of 
avocados who are subject to regulation under the respective marketing 
order and approximately 40 lime and 100 avocado producers in the 
regulated areas. Small agricultural service firms are defined by the 
Small Business Administration (13 CFR 121.601) as those having annual

[[Page 31005]]

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 and producers may be classified as small 
entities.
    Under the terms of the marketing orders, fresh market shipments of 
Florida limes and avocados are required to be inspected and are subject 
to grade, size, maturity, pack and container requirements. Current 
requirements include specifications that all authorized containers of 
limes and avocados shall be plainly marked with a Federal-State 
Inspection lot stamp number corresponding to the lot inspection 
conducted by an authorized inspector.
    This rule changes the container marking requirements currently 
issued under the orders. This rule relaxes the lot stamping 
requirements on containers of limes and avocados that have been 
palletized prior to block inspections. The Florida Lime and Avocado 
Administrative Committees (committees), the agencies responsible for 
local administration of the marketing orders, met on March 13, 1996, 
and recommended this action by unanimous vote.
    The marketing orders authorize under Sec. 911.48 and Sec. 915.51 
the establishment of container marking requirements. Sections 
911.311(b) and 915.306(a)(4)(5) of the rules and regulations outline 
the lot stamp number container marking requirements for fresh limes and 
avocados packed under the orders.
    There are two basic types of inspection in the industry; in-line 
and block. In-line inspection is performed during the packing process, 
prior to palletization and storage. In block inspection, the inspection 
occurs after the pallets have been packed, strapped, and placed in 
storage. Large handling facilities tend to have inspectors on site when 
they are packing. These facilities use in-line inspection which allows 
the containers to be lot stamped prior to being palletized. Smaller 
handling facilities do not run enough fruit to justify the continuous 
presence of an inspector. Therefore, they call for a block inspection 
after a lot is run, palletized and ready to ship. Requiring the 
inspector to lot stamp each container necessitates tearing down all the 
pallets. This results in significant cost and loss of time.
    The committees recommended relaxing the number of containers 
required to be marked with the lot stamp number to assist small 
handlers. This relaxation revises the lot stamping requirements for 
containers that have been palletized prior to inspection. Under this 
change, all exterior, exposed boxes, on all four sides of a pallet, 
will be lot stamped, rather than each box. The committees anticipate 
that this recommended relaxation would avoid prohibitive costs to small 
handlers.
    Less than 25 percent of all lime and avocado shipments are shipped 
by small packing houses using block inspection. Under this revised 
procedure, most of the containers they pack would be lot stamp 
numbered. The center tiers of randomly selected pallets are inspected 
by the Federal-State Inspection Service for all marketing order 
requirements. The committees' recommendation to relax the container 
marking requirement would not lower the number of containers being 
inspected.
    Several other alternatives were suggested during the public 
meeting. One alternative discussed by the committees was to require all 
containers to continue to be lot stamp numbered. Maintaining the 
requirement for lot stamp numbers to be placed on all containers would 
not address the burden placed on small handlers. That burden includes 
higher handler labor costs, slower handler operations, increased 
handler restrapping costs, as well as increased inspection costs. It 
was the consensus of the committees that the current requirement is 
cost prohibitive as each block-inspected pallet needs to be manually 
pulled apart to enable the lot stamp number to be placed on the center 
tier containers.
    Another alternative suggested was to eliminate the block-inspection 
method and require all handlers to use the in-line inspection method. 
During in-line inspection, containers would be stamped with the lot 
stamp number prior to being stacked on the pallet. This would have a 
serious financial impact on the industry, especially among small 
handlers, due to a large increase in inspection costs. This suggestion 
was unacceptable to the industry as it would be cost prohibitive and 
could force small handlers out of business.
    This rule relaxes the lot stamping requirements on containers of 
limes and avocados that have been palletized prior to block inspection. 
Smaller handling facilities are the primary users of block inspection 
and will benefit from the cost savings of this relaxation. Therefore, 
the AMS has determined that this action will not have a significant 
economic impact on a substantial number of small entities.
    Section 8(e) of the Act requires that whenever grade, size, quality 
or maturity requirements are in effect for certain commodities under a 
domestic marketing order, including limes and avocados, imports of that 
commodity must meet the same or comparable requirements. This rule 
changes the container marking requirements currently issued under the 
orders. Therefore, no change is necessary in the lime and avocado 
import regulations as a result of this action to relax the lot stamp 
number requirement.
    After consideration of all relevant material presented, including 
the committees' recommendation, and other available information, it is 
found that this interim final rule, as hereinafter set forth, will tend 
to effectuate the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) Handlers are currently shipping limes and avocados; (2) 
the committees unanimously recommended this rule at public meetings and 
all interested persons had an opportunity to provide input; (3) this 
rule relaxes container marking requirements; (4) Florida lime and 
avocado handlers are aware of this rule and need no additional time to 
comply with the relaxed requirements; and (5) this rule provides a 30-
day comment period and any comments received will be considered prior 
to finalization of this rule.

List of Subjects

7 CFR Part 911

    Marketing agreements, Limes, Reporting and recordkeeping 
requirements.

7 CFR Part 915

    Marketing agreements, Avocados, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR Parts 911 and 915 
are amended as follows:
    1. The authority citation for both 7 CFR parts 911 and 915 
continues to read as follows:

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

PART 911--LIMES GROWN IN FLORIDA

    2. Section 911.311 is amended by revising paragraph (b) to read as 
follows:


Sec. 911.311  Florida lime pack and container marking regulation.

* * * * *
    (b) No handler shall handle any limes grown in the production area 
in any

[[Page 31006]]

container specified in Sec. 911.329 unless such container is marked 
with a Federal-State Inspection Service lot stamp number showing that 
the limes have been inspected in accordance with regulations issued 
under Sec. 911.48 of the marketing order: Provided, That when 
inspection occurs after palletization, only all exposed or outside 
containers of limes must be plainly marked with the lot stamp number 
corresponding to the lot inspection conducted by an authorized 
inspector.
* * * * *

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

    3. In Sec. 915.306, paragraph (a)(4) is revised to read as follows:


Sec. 915.306  Florida avocado grade, pack, and container marking 
regulation.

    (a) * * *
    (4) Such avocados are in containers marked with a Federal-State 
Inspection Service lot stamp number, when handled in containers 
authorized under Sec. 915.305: Provided, That when inspection occurs 
after palletization, only all exposed or outside containers of avocados 
must be plainly marked with the lot stamp number corresponding to the 
lot inspection conducted by an authorized inspector.
* * * * *
    Dated: June 13, 1996.
Sharon Bomer Lauritsen,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 96-15627 Filed 6-18-96; 8:45 am]
BILLING CODE 3410-02-P