[Federal Register Volume 61, Number 151 (Monday, August 5, 1996)]
[Proposed Rules]
[Pages 40550-40551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19854]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 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.
 
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 

  Federal Register / Vol. 61, No. 151 / Monday, August 5, 1996 / 
Proposed Rules  

[[Page 40550]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 911 and 944

[Docket No. FV96-911-1PR]


Limes Grown in Florida and Imported Limes; Increase in the 
Minimum Size Requirement

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on a proposed increase in 
the current minimum size requirement for limes grown in Florida and for 
limes imported into the United States. The Florida Lime Administrative 
Committee (Committee), is the agency responsible for the local 
administration of the marketing order covering limes grown in Florida. 
This rule would increase the minimum size requirement from 1 7/8 inches 
to 2 inches in diameter during the period of January 1 through May 31. 
Larger fruit tend to have a higher juice content. Therefore, the 
increase in fruit size would enable handlers to meet the 42 percent 
juice content requirement specified in the regulations for limes 
shipped to the fresh market. The changes in import requirements are 
necessary under section 8e of the Agricultural Marketing Agreement Act 
of 1937.

DATES: Comments must be received by October 4, 1996.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments should 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 or by FAX at (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: Caroline C. Thorpe, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2522-S, Washington, DC 20090-6456; telephone: 202-720-
5127; or Aleck J. Jonas, Southeast Marketing Field Office, USDA/AMS, 
P.O. Box 2276, Winter Haven, Florida 33883; telephone: 813-299-4770. 
Small businesses may request information on compliance with this 
regulation by contacting: Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 
2523-S, Washington, D.C. 20090-6456; telephone: 202-720-2491, Fax # 
202-720-5698.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing 
Agreement and Order No. 911 (7 CFR Part 911), as amended, regulating 
the handling of limes grown in Florida, hereinafter referred to as the 
``order.'' The 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 rule is also issued under section 8e of the Act, which 
requires the Secretary of Agriculture to issue grade, size, quality, or 
maturity requirements for certain listed commodities, including limes, 
imported into the United States that are the same as, or comparable to, 
those imposed upon the domestic commodities regulated under the Federal 
marketing orders.
    The Department of Agriculture (Department) is issuing this proposed 
rule in conformance with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This action 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 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 approximately 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. Interested persons are invited to submit information 
on the regulatory and informational impacts of this action on small 
businesses.
    This rule proposes an increase in the minimum size requirement for 
Florida and imported limes, which could impose some additional costs on 
handlers and importers, including small entities. However, any 
additional costs

[[Page 40551]]

will not impose a significant economic impact. The minimum size 
requirement would be applied to both small and large handlers and 
importers in the same way. With an increase in the minimum size, the 
larger limes are more likely to meet the 42 percent minimum juice 
content requirement. This change is expected to reduce the incidence of 
repacking and may lower costs to handlers and importers. Increasing the 
minimum size would also ensure that such limes would be more mature and 
have a higher juice content, which would encourage repeat purchases by 
consumers. This increase in quality to the consumer is expected to 
increase returns to handlers, importers, and producers. Therefore, AMS 
has determined that this action would not have a significant economic 
impact on a substantial number of small entities.
    Section 911.48 of the lime marketing order provides authority to 
issue regulations establishing specific pack, 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, the minimum 
size requirement for Florida limes is that they measure at least 1\7/8\ 
inches in diameter.
    The destruction caused by Hurricane Andrew in 1992 has drastically 
reduced the lime acreage in Florida from 6,500 acres to approximately 
1,500 acres. During the 1991-92 season, prior to Hurricane Andrew, 
1,682,677 bushels of limes were assessed. For the 1993-94 season, 
assessments were collected on 228,455 bushels, and for the 1994-95 
season, assessments were collected on 283,977 bushels of limes. These 
factors led the Committee to reconsider current marketing order 
requirements, including the 1\7/8\ inches in diameter size requirement.
    The Committee met on January 10, 1996, and recommended to increase 
the minimum size requirement for Florida limes from 1\7/8\ inches to 2 
inches in diameter during the period of January 1 through May 31. The 
recommendation passed by a vote of seven in favor to one opposed. The 
one dissenting voter did not comment on why he was opposed to the 
increase.
    Florida lime production and the quantity of lime imports into the 
United States reach their lowest point from January through May. During 
the 1994-95 season, 32,035 bushels of Florida limes and 2,402,987 
bushels of imported limes, were shipped to the fresh market during the 
January through May production period. In comparison, 257,178 bushels 
of Florida limes and 5,980,669 bushels of imported limes, were shipped 
to the fresh market during the peak production period of June through 
December.
    During the January through May period, prices are generally higher 
while lime quality is lower. Market demand however, remains the same as 
in the peak production period. These factors have resulted in an 
incentive to pack low quality fruit. Also, the juice content 
requirement for limes shipped to the fresh market is 42 percent. 
Handlers have had difficulty meeting the requirement during the low 
production period because limes are less mature and have thicker skins. 
The thicker-skinned limes tend to have lower juice content.
    Limes that are 2 inches or larger in diameter have a higher juice 
content than smaller limes. The larger limes, therefore, have a greater 
chance of meeting the 42 percent juice content requirement. Increasing 
the minimum size to 2 inches in diameter would therefore result in more 
fresh limes meeting the 42 percent juice content requirement. These 
limes would pass inspection without the expense of repacking and 
regrading the fruit which would reduce handling costs.
    The increase would have a positive cost effect on consumers because 
it would allow handlers of limes to provide the consumer with higher 
quality fruit at a reasonable cost. According to the Committee, the 
industry's past sales records indicate that consumers have a preference 
for the larger sized limes. Producers and importers of limes would also 
benefit by experiencing higher return rates.
    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 increase the minimum size requirement for Florida limes, a 
corresponding change would also apply to imports.
    In a separate rulemaking action, the Department is proposing to 
reduce the regulatory period for Florida limes and limes imported into 
the United States. The proposed action 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.
    Minimum grade, size, quality, and maturity requirements for limes 
imported into the United States are currently in effect under 
Sec. 944.209 (7 CFR 944.209). This proposal would increase the minimum 
size requirement for imported limes from 1\7/8\ inches to 2 inches in 
diameter during the period of January 1 through May 31. This rule would 
result in more imported limes passing the 42 percent juice content 
requirement, providing higher quality fruit at a reasonable cost.
    The largest exporter of limes to the United States is Mexico, with 
the heaviest volumes of lime shipments occurring between June 1 and 
December 31. Mexico exported 6,075,685 bushels of fresh limes to the 
United States during the 1994-95 season, while other import sources 
shipped a total of 201,053 bushels, combined.
    The 1\7/8\ inches in diameter size requirement is not specifically 
stated in the lime import regulation. Therefore, no change is needed in 
the text of Sec. 944.209.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this proposed rule.
    Interested persons are invited to submit comments on this proposal. 
A 60-day comment period is deemed appropriate because all parties need 
time to ensure all comments are received in order to be of maximum 
benefit to the lime industry during the January 1 through May 31 
period.

List of Subjects in 7 CFR Part 911

    Limes, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth above, 7 CFR part 911 is 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. 911.344  [Amended]

    2. In Sec. 911.344, paragraph (a)(3) the words ``at least 1 7/8 
inches'' are revised to read ``at least 2 inches''.

    Dated: July 31, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-19854 Filed 8-2-96; 8:45 am]
BILLING CODE 3410-02-P