[Federal Register Volume 61, Number 234 (Wednesday, December 4, 1996)]
[Rules and Regulations]
[Pages 64251-64253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30861]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 234 / Wednesday, December 4, 1996 / 
Rules and Regulations  

[[Page 64251]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Docket No. FV96-905-4 IFR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
and Import Regulations (Grapefruit); Relaxation of the Minimum Size 
Requirement for Red Grapefruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This interim final rule makes a change in regulations under 
the Florida citrus marketing order and grapefruit import regulations. 
This rule relaxes the minimum size requirement for red seedless 
grapefruit from 3\9/16\ inches in diameter (size 48) to 3\5/16\ inches 
in diameter (size 56). The Citrus Administrative Committee (Committee), 
the agency that locally administers the marketing order for oranges, 
grapefruit, tangerines, and tangelos grown in Florida, unanimously 
recommended this change. This change will enable handlers and importers 
to continue to ship size 56 red seedless grapefruit for the entire 
1996-97 season.

DATES: Effective on November 11, 1996; comments received by January 3, 
1997 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, 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: Caroline C. Thorpe, Marketing 
Specialist, Marketing Order Administration Branch, F&V, AMS, USDA, room 
2525-S, P.O. Box 96456, Washington, D.C. 20090-6456; telephone: (202) 
720-8139, Fax # (202) 720-5698; or William G. Pimental, Marketing 
Specialist, Southeast Marketing Field Office, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 2276, Winter Haven, Florida 33883-2276; 
telephone: (941) 299-4770, 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 2525-S, Washington, DC 20090-
6456; telephone (202) 720-2491; Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 84 and Marketing Order No. 905 (7 CFR Part 905), as 
amended, regulating the handling of oranges, grapefruit, tangerines, 
and tangelos 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 
provides that whenever certain specified commodities, including 
grapefruit, 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 rule has been reviewed under Executive Order 12988, 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 the 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 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 approximately 100 handlers of Florida citrus who are 
subject to regulation under the marketing order and approximately 
11,000 producers of citrus in the regulated area, and about 25 
grapefruit importers. Small agricultural service firms are 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, producers, and importers of Florida 
citrus may be classified as small entities.

[[Page 64252]]

    This rule relaxes the minimum size for the period November 11, 
1996, through November 9, 1997. This rule is expected to have a 
positive impact on handlers and importers, as it will permit the 
shipment of smaller size grapefruit, allowing the industry to meet 
market needs. The relaxed minimum size requirement would be applied to 
both small and large handlers and importers in the same way. This size 
relaxation will enable Florida grapefruit shippers and importers of 
grapefruit to continue shipping size 56 red seedless grapefruit to the 
domestic market. This is consistent with current and anticipated demand 
in those markets for the 1996-97 season, which will provide for the 
maximization of shipments to fresh market channels and increase grower 
returns. Therefore, the AMS has determined that this action will not 
have a significant economic impact on a substantial number of small 
entities. Interested persons are invited to submit information on the 
regulatory and informational impacts of this action on small 
businesses.
    The order for Florida citrus provides for the establishment of 
minimum grade and size requirements. The minimum grade and size 
requirements are designed to provide fresh markets with fruit of 
acceptable quality, thereby maintaining consumer confidence for fresh 
Florida citrus. This helps create buyer confidence and contributes to 
stable marketing conditions. This is in the interest of producers, 
packers, and consumers, and is designed to increase returns to Florida 
citrus growers.
    This interim final rule invites comments on a change to the order's 
rules and regulations to relax the minimum size requirement for red 
seedless grapefruit allowing for the continued shipment of size 56 
grapefruit. The Committee met October 8, 1996, and unanimously 
recommended this action.
    This rule relaxes the red seedless grapefruit minimum size 
requirement from size 48 (3\9/16\ inches diameter) to size 56 (3\5/16\ 
inches diameter) for the period November 11, 1996, through November 9, 
1997. Absent this change, the size will revert back to size 48 (3\9/16\ 
inches diameter), on November 11, 1996.
    Section 905.52, in part, authorizes the Committee to recommend 
minimum grade and size regulations to the Secretary. Section 905.306 (7 
CFR 905.306) specifies minimum grade and size requirements for 
different varieties of fresh Florida grapefruit. Such requirements for 
domestic shipments are specified in Section 905.306 in Table I of 
paragraph (a), and for export shipments in Table II of paragraph (b). 
Minimum grade and size requirements for grapefruit imported into the 
United States are currently in effect under Section 944.106 (7 CFR 
944.106), as reinstated on July 26, 1993 (58 FR 39428, July 23, 1993). 
Export requirements are not changed by this rule.
    In making its recommendation, the Committee considered estimated 
supply and current shipments. According to both the National 
Agricultural Statistics Service and the Committee, production of red 
seedless grapefruit is expected to increase in comparison to last year 
(1995-96). Both sources estimate an increase in production for this 
season (1996-97) of about 10 percent to 31.5 million boxes and about 3 
percent to 29 million boxes, respectively. The Committee reports that 
it expects that fresh market demand will be sufficient to permit the 
shipment of size 56 red seedless grapefruit grown in Florida during the 
entire 1996-97 season. The Committee believes that markets have been 
developed for size 56 and that they should continue to supply those 
markets.
    This size relaxation will enable Florida grapefruit shippers to 
continue shipping size 56 red seedless grapefruit to the domestic 
market. This rule will have a beneficial impact on producers and 
handlers, since it will permit Florida grapefruit handlers to make 
available those sizes of fruit needed to meet consumer needs. This is 
consistent with current and anticipated demand in those markets for the 
1996-97 season, and will provide for the maximization of shipments to 
fresh market channels.
    There are some exemptions to these regulations provided under the 
order. Handlers may ship up to 15 standard packed cartons (12 bushels) 
of fruit per day. Handlers may also ship unlimited gift packages of up 
to 2 standard packed cartons of fruit per day, which are individually 
addressed and not for resale. Fruit shipped for animal feed is also 
exempt under specific conditions. Fruit shipped to commercial 
processors for conversion into canned or frozen products or into a 
beverage base are not subject to the handling requirements.
    Section 8e of the Act provides that when certain domestically 
produced commodities, including grapefruit, 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 will relax the minimum size requirement under the domestic 
handling regulations, a corresponding change to the import regulations 
must also be considered.
    Minimum grade and size requirements for grapefruit imported into 
the United States are currently in effect under Section 944.106 (7 CFR 
944.106), as reinstated on July 26, 1993 (58 FR 39428, July 23, 1993). 
This rule relaxes the minimum size requirements for imported red 
seedless grapefruit to 3\5/16\ inches in diameter (size 56) for the 
period November 11, 1996, through November 9, 1997, to reflect the 
relaxation being made under the order for grapefruit grown in Florida. 
The minimum grade and size requirements for Florida grapefruit are 
specified in Section 905.306 (7 CFR 905.306) under Marketing Order No. 
905.
    During the last 5 years (1991-1995) imports to the United States of 
fresh grapefruit averaged less than 2 percent of total domestic 
consumption or less than 15,000 tons per year. Based on Departmental 
data, domestic consumption averaged 766,000 tons per year for that 
period. The major exporter of grapefruit to the United States was the 
Bahamas. The Bahamas shipped an average of 95 percent of all grapefruit 
imports to the United States during that time period. Other exporters 
of grapefruit to the United States included; Mexico, Jamaica, Dominican 
Republic, Netherlands, Israel, and Thailand.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this interim final 
rule.
    After consideration of all relevant material presented, including 
the Committee's 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) This rule relaxes the minimum size 
requirements that would otherwise be in effect November 11, 1996, for 
grapefruit grown in Florida; (2) Florida grapefruit handlers are aware 
of this action which was unanimously recommended by the Committee at a 
public meeting, and they will need no additional time to comply with 
the relaxed requirements; (3) Florida grapefruit shipments began on 
September 1, 1996, and the season will be well underway by November 11, 
1996; and (4) this rule provides a 30-day comment period and any 
comments

[[Page 64253]]

received will be considered prior to finalization of this interim final 
rule.

List of Subjects

7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements, Tangelos, Tangerines.

7 CFR Part 944

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

    For the reasons set forth above, 7 CFR parts 905 and 944 are 
amended as follows:
    1. The authority citation for 7 CFR parts 905 and 944 continues to 
read as follows:

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

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN 
FLORIDA

    2. Section 905.306 is amended by revising the entries for 
grapefruit in paragraph (a), Table I, to read as follows:


Sec. 905.306  Orange, Grapefruit, Tangerine, and Tangelo Regulation.

    (a) * * *

                                                     Table I                                                    
                                                                                                                
                                                                                                       Minimum  
              Variety                     Regulation period                 Minimum Grade              diameter 
                                                                                                       (inches) 
(1)                                  (2)........................  (3)..............................          (4)
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                                                                                                
*                  *                  *                  *                  *                  *                
                                               *                                                                
Grapefruit:                                                                                                     
    Seeded, red....................  Except on and after 9/01/94  U.S. No. 1.......................      3-12/16
    Seeded, red....................  On and after 9/01/94.......  U.S. No. 1.......................      3-12/16
    Seedless, red..................  11/13/95-11/10/96..........  U.S. No. 1.......................       3-5/16
                                     11/11/96-11/9/97...........  U.S. No. 1.......................       3-5/16
                                     On and after 11/10/97......  U.S. No. 1.......................       3-9/16
    Seedless, except red...........  On and after 9/01/94.......  U.S. No. 1.......................       3-9/16
                                                                                                                
*                  *                  *                  *                  *                  *                
                                               *                                                                
----------------------------------------------------------------------------------------------------------------

* * * * *

PART 944--FRUITS; IMPORT REGULATIONS

    4. In Sec. 944.106, paragraph (a) is revised to read as follows:


Sec. 944.106  Grapefruit import regulation.

    (a) Pursuant to Section 8e [7 U.S.C. Section 608e-1] of the 
Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-
674], and Part 944--Fruits; Import Regulations, the importation into 
the United States of any grapefruit is prohibited unless such 
grapefruit meet the following minimum grade and size requirements for 
each specified grapefruit classification:

                                                                                                                
                                                                                                                
                                                                                                       Minimum  
     Grapefruit classification            Regulation period                 Minimum grade              diameter 
                                                                                                       (inches) 
(1)                                  (2)........................  (3)..............................          (4)
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Seeded.............................  On and after 9/1/94........  U.S. No. 1.......................      3-12/16
Seedless, red......................  11/13/95--11/10/96.........  U.S. No. 1.......................       3-5/16
                                     11/11/96--11/9/97..........  U.S. No. 1.......................       3-5/16
                                     On and after 11/10/97......  U.S. No. 1.......................       3-9/16
Seedless, except red...............  On and after 9/1/94........  U.S. No. 1.......................       3-9/16
----------------------------------------------------------------------------------------------------------------

* * * * *
    Dated: November 27, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-30861 Filed 12-3-96; 8:45 am]
BILLING CODE 3410-02-P