[Federal Register Volume 61, Number 234 (Wednesday, December 4, 1996)]
[Rules and Regulations]
[Pages 64255-64257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30860]


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DEPARTMENT OF AGRICULTURE
7 CFR Parts 911

[Docket No. FV96-911-1 FR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule increases the current minimum size requirement 
for limes grown in Florida and for limes imported into the United 
States. This change was recommended by the Florida Lime Administrative 
Committee (Committee), the agency responsible for the local 
administration of the

[[Page 64256]]

marketing order covering limes grown in Florida. This rule increases 
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 will 
enable handlers to better 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.

EFFECTIVE DATE: This final rule becomes effective January 3, 1997.

FOR FURTHER INFORMATION CONTACT: Caroline C. Thorpe, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2525-S, Washington, DC 20090-6456; telephone: 202-720-
5127, or Fax # 202-720-5698; or Aleck J. Jonas, Southeast Marketing 
Field Office, USDA/AMS, P.O. Box 2276, Winter Haven, Florida 33883; 
telephone: 941-299-4770, or Fax # 941-299-5169. 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, DC 20090-
6456; telephone: 202-720-2491, Fax # 202-720-5698.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement No. 126 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 final 
rule in conformance with Executive Order 12866.
    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This action is not intended to have retroactive 
effect. This final 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 final 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.
    This rule increases 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 
are minimal and will not impose a significant economic impact. The 
minimum size requirement will be applied to both small and large 
handlers and importers in proportion to this. 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, resulting in lower costs to handlers and 
importers. Increasing the minimum size also ensures that such limes 
will be more mature and have a higher juice content, which encourages 
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 will 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 Sections 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

[[Page 64257]]

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.
    This rule needs to be effective by January 1, 1997, because 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 is expected to result in more 
fresh limes meeting the 42 percent juice content requirement. These 
limes are more likely to pass inspection without the expense of 
repacking and regrading the fruit which will reduce handling costs.
    The increase in minimum size has a positive cost effect on 
consumers because it allows 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 will 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 increases the minimum size requirement for Florida limes, a 
corresponding change also applies to imports.
    In a separate rulemaking action, as finalized in the Federal 
Register on August 21, 1996 (61 FR 43141), the Department reduced the 
regulatory period for Florida limes and limes imported into the United 
States. That action modified language in both the domestic and import 
regulations to change the regulatory period to January 1 through May 31 
from a 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 rule increases 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. By increasing 
the minimum size, this rule will 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.
    The proposed rule concerning this action was issued on July 31, 
1996, and was published in the August 5, 1996, Federal Register (61 FR 
40551), with a 60-day comment period ending October 4, 1996. No 
comments were received. However, a request to extend the comment period 
to October 31, 1996, was received. This request was denied as the 
proposed rule already had an extended 60-day comment period. Therefore, 
the Department continues to believe that this was sufficient time to 
file comments. This rule needs to be implemented by January 1. Due to 
market conditions, the period from January through May is when the 
prices for limes tend to be higher and the quality of limes tends to be 
lower. This creates an incentive to pack low quality fruit that can 
hurt the marketing of limes. Because of this situation, the Department 
has determined not to reopen the comment period.
    After thoroughly analyzing the comments received and other 
available information, the Department has concluded that this final 
rule is appropriate.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this final rule.
    After consideration of all relevant matter presented, including the 
information and recommendations submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.

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 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 Section 911.344, paragraph (a)(3) the words ``at least 1\7/8\ 
inches'' are revised to read ``at least 2 inches''.
    Dated: November 27, 1996
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-30860 Filed 12-3-96; 8:45 am]
BILLING CODE 3410-02-P