[Federal Register Volume 62, Number 103 (Thursday, May 29, 1997)]
[Rules and Regulations]
[Pages 28979-28982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13968]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 51

[Docket Number FV-97-301]


Apples; Grade Standards

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule will revise the United States Standard for Grades of 
Apples and the U.S. Condition Standards for Export. This rule revises 
the U.S. Extra Fancy and U.S. Fancy grades basic requirements section, 
the definition of damage by invisible water core, and the U.S. 
Condition Standards for Export to exempt the Fuji variety of apples 
from damage by invisible water core. This change will result in a 
benefit to handlers and producers of Fuji apples, by allowing more 
fruit to be marketed which would otherwise be graded as defective.

DATES: This rule is effective May 30, 1997. Comments must be received 
by July 28, 1997.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this interim final rule. Comments must be sent to the 
Standardization Section, Fresh Products Branch, Fruit and Vegetable 
Division, Agricultural Marketing Service, U.S. Department of 
Agriculture, P.O. Box 96456, Room 2065 South Building, Washington, D.C. 
20090-6456. Comments should make reference to the date and page number 
of this issue of the Federal Register and will be made available for 
public inspection in the above office during regular business hours.

FOR FURTHER INFORMATION CONTACT: Frank O'Sullivan, at the above address 
or call (202) 720-2185.

SUPPLEMENTARY INFORMATION: The U.S. Department of Agriculture is 
issuing this rule in conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This action 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. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of the rule.
    Pursuant to the 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 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. The United States 
standards issued pursuant to the Agricultural Marketing Act of 1946, 7 
U.S.C. 1621-1627, and 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 compatibility.
    Although it is difficult to obtain an exact number of Fuji apple 
handlers and producers (primarily due to the fact that an apple 
producer or handler normally grows, or handles more than just one 
variety) it is estimated that there are approximately 900 Fuji apple 
handlers and producers in the United States. Small agricultural service 
firms, which includes handlers, have been 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 
having annual receipts of less than $500,000. A majority of handlers 
and producers of Fuji apples may be classified as small entities.
    Information provided by the United States Apple Association (USAA) 
indicates that U.S. holdings of Fuji variety apples as of November 1, 
1992 (figures are in millions of boxes), were 1.4 million and has 
steadily increased to approximately 8.7 million as of November 1, 1996. 
The Fuji variety has become Washington State's third largest variety 
this year. The USAA also reports that there are storages with Fuji 
holdings in approximately 19 other States.
    This rule will revise the U.S. Standard for Grades of Apples and 
the U.S. Condition Standards. This rule specifically revises the U.S. 
Extra Fancy and U.S. Fancy grades basic requirements section, the 
definition of damage by invisible water core, and the U.S. Condition 
Standards for Export to exempt the Fuji variety of apples from damage 
by invisible water core. These revisions will be a benefit to handlers 
and producers of Fuji apples, regardless of the size, by allowing more 
fruit to be marketed which would otherwise be graded as defective.
    The U.S. Standards for Grades of Apples and the U.S. Condition 
Standards for Export are both voluntary grade standards. There are no 
regulatory provisions that require the use of these standards with the 
exception of the Export Apple and Pear Act (7 U.S.C. 581 et seq.) and 
its regulations (7 CFR Part 33) in regard to the U.S. Standards for 
Grades of Apples. Under the Export Apple and Pear Act shipments of 
apples to foreign countries must meet a minimum requirement of the U.S. 
No. 1 grade (there are exemptions to this Act based on lot size, 
destination, etc.) However, the grade changes being made in this rule-
making only affect the U.S. Extra Fancy and U.S. Fancy grades of the 
U.S. Standards for Grades of Apples and the U.S. Condition Standards 
for Export; none of which are contingent upon the Export Apple and Pear 
Act.
    AMS has determined that this action would not impose any additional 
reporting or recordkeeping requirements on either small or large apple 
handlers. Accordingly, AMS has determined that the issuance of this 
interim final rule will not have a significant economic impact on a 
substantial number of small entities.
    AMS recently received a request from the Northwest Horticultural 
Council (NHC) and the USAA, requesting relief from scoring damage by 
invisible water core in the Fuji variety of apples. The NHC represents 
the deciduous tree fruit industry in the States of Washington, Oregon, 
and Idaho on Federal and international trade policy issues and the USAA 
represents the apple industry on a nation-wide basis. According to the 
NHC and the USAA, the production of the Fuji variety has steadily been 
on the increase in the U.S. over the past several years. As previously 
mentioned, U.S. holdings of the Fuji variety as of November 1, 1992, 
were (figures are in millions of boxes) 1.4 million and has increased 
to 8.7 million as of November 1, 1996. The Fuji variety has become the 
third largest variety this year for Washington State.
    In addition, the U.S. Fuji holdings have traditionally experienced 
a history of heavy export. Of the three million boxes of Fuji's 
produced in Washington State in 1995, two million were exported. 
Therefore, two-thirds of Washington State's Fuji crop and almost half 
of the entire U.S. Fuji crop was exported in 1995.
    The Fuji apple is a relatively new variety of apple in the United 
States. The Fuji variety is a cross between the Red Delicious and Ralls 
Janet varieties and was bred in Japan over 50 years ago. Although it 
was named in 1962, the variety was not highly marketed in the U.S. 
until the mid to late 1980's. According to the NHC and the USAA, Fuji 
apples are prone to a condition known as ``invisible water core.'' 
Invisible water core manifests itself as translucent or glassy areas of 
tissue in the flesh of the apple. The location of

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these translucent or glassy areas is not necessarily in the core region 
as its name would indicate but may be located sometimes around the 
vascular bundles or scattered in the flesh toward the calyx-end of the 
fruit. Mild to moderate symptoms may even disappear. Alternatively, if 
water core is severe, however, it may be followed by an irreversible 
breakdown of the flesh.
    According to one expert of post harvest diseases and disorders of 
apples, Anna L. Snowden, Ph.D., in all types of water core the 
characteristic water-soaking results from a leakage of cell sap into 
the intercellular spaces (which are normally filled with air), 
following an abnormally rapid conversion of starch to sugar. It is this 
apparent conversion to sugar that may soon yield to internal breakdown 
in most apple varieties. Therefore, watercore has traditionally been 
considered an undesirable or pathological defect.
    However, proponents of this interim final rule have suggested that 
not only do certain consumers find this condition of Fuji apples 
desirable, but that this variety may store longer and without internal 
breakdown complications as with other apple varieties. Eugene M. 
Kupferman, Ph.D., Extension Horticulturalist at the Washington State 
University Tree Fruit Research and Extension Center in Wenatchee, 
Washington, stated in a letter to the NHC that, `` `Fuji' apples have a 
very sweet flavor and a good sugar/acid balance. One of the attributes 
of ` Fuji' is their ability to accumulate sugar, called `watercore' in 
the flesh of the fruit. `Fuji' apples with watercore are prized by 
Asian consumers, and growers perform a number of cultural practices in 
the orchard to promote watercore * * *. Japanese consumers prefer 
watercored to non-watercored `Fuji'. They will reject apples without 
watercore during the first 3-4 months after harvest.''
    Dr. Kupferman further maintains that, `` `Fuji' apples of the 
appropriate maturity with moderate levels of watercore, can be stored 
and marketed for at least 6 months. `Fuji' with slight watercore can be 
stored up to 12 months without problems in Controlled Atmosphere.
    Furthermore, watercore is far less of a problem with `Fuji' than 
with `Red Delicious' apples, which can be stored for only 3 months with 
moderate watercore. This appears to be due to differences in the rate 
of metabolism of the two varieties. Research is underway to study this 
further. Of course, with either variety, when very heavily watercored 
fruit are stored excessively long, internal browning can result.''
    Presently, scoring invisible water core on apples includes the 
following: First, water core is separated into two different types, 
based on whether it may be seen externally or not; Second, if the water 
core exists as ``invisible water core'' it is only scored against 
certain grades during certain times of the year; Finally, if the U.S. 
Condition Standards for Export are requested to be applied, damage by 
invisible water core is considered a defect at anytime of the year 
regardless of the ``grade.''
    If water core is visible externally, that is, it may be seen 
without the need for cutting the apple, it is referred to in the U.S. 
Standards for Grades of Apples as ``visible water core'' by definition 
(section 51.320 Serious damage, paragraph (f)). Visible water core is 
scored as serious damage if the apple demonstrates an area which is 
visible externally, and is greater than the area of a circle one-half 
inch in diameter. Serious damage by visible water core is scored as a 
defect against all apple grades, and when applying the U.S. Condition 
Standards, at any time of the year.
    If water core occurs within the flesh of the apple and cannot be 
seen externally, i.e. the apple must be cut in a plane perpendicular 
to, and midway between, a straight line from the stem and calyx end, it 
is scored as ``damage by invisible'' water core if any of three 
particular conditions are met. These three conditions are: If the 
invisible water core exists around the core of the apple and extends 
outward to any vascular bundle(s); if the affected areas surround the 
vascular bundles (and does not extend into the core) such that three or 
more vascular bundles meet or coalesce; or if it exists in more than a 
slight degree outside the circular area formed by the vascular bundles.
    However, damage by invisible water core may only be scored against 
the U.S. Extra Fancy or U.S. Fancy grades, and is not considered as a 
scoreable defect against the U.S. No. 1 or U.S. Utility grade. Further, 
damage by invisible water core is scored as a defect under the U.S. 
Extra Fancy and U.S. Fancy grades, only after January 31, of the year 
following the year of production.
    The U.S. Condition Standards for Export are additional requirements 
that may be applied to domestic shipments of apples as well as export 
lots. These extra requirements are not an extension of, or a part of 
the United States Standards for Grades of Apples or of the U.S. Apple 
and Pear Export Act. The U.S. Condition Standards for Export, 7 CFR 
Part 51 Section 51.323 appear in the CFR immediately following the U.S. 
Standards for Grades of Apples, 7 CFR Part 51 Sections 51.300--51.322.
    These standards are provided as an additional set of requirements 
for application to lots of apples. They were originally designed to be 
voluntarily used as an additional set of standards which would 
primarily cover condition defects only for export shipments. At their 
inception they were simply referred to as the ``Export Standards.'' 
However, over a period of many years the title given to these 
regulations is now the ``U.S. Condition Standards for Export'' also 
known simply as the ``U.S. Condition Standards'' and, due in part to 
their increased popularity among receivers, are now used when ever two 
parties involved in shipping and receiving lots of apples so designate. 
Since these U.S. Condition Standards are not part of the Export Apple 
and Pear Act, nor are they incorporated in any other regulatory 
article, they are a voluntary set of standards which provide for 
additional tolerances primarily in reference to condition defects. When 
applying the U.S. Condition Standards for Export, regardless of the 
grade, invisible water core is considered as a defect at anytime of the 
year. The U.S. Condition Standards allow five percent for apples 
damaged by invisible water core.
    The U.S. Export Apple and Pear Act (7 U.S.C. 581 et seq.) and its 
regulations (7 CFR part 33), requires that apples being exported from 
the U.S. meet a minimum grade requirement of U.S. No. 1. There are no 
specific requirements in the Act pertaining to invisible water core. 
Although the U.S. Condition Standards for Export do have requirements 
pertaining to invisible water core, the U.S. Condition Standards for 
Export are a voluntary set of standards separate and apart from the 
Export Apple and Pear Act and are not incorporated by the Act or the 
U.S. Standards for Grades of Apples, i.e. there are no requirements on 
behalf of the U.S. Export Apple and Pear Act or the U.S. Standards for 
Grades of Apples that state that apples must meet the requirements of 
the U.S. Condition Standards for Export.
    When shippers from the U.S. attempt to ship lots of Fuji apples to 
foreign markets the receiver generally requests that lots meet a U.S. 
Extra Fancy or Fancy grade. Presently, apples exported from the U.S. 
which contain more than 10 percent damage by invisible water core, may 
attain no higher than the U.S. No. 1 grade (because invisible water 
core is not considered a defect under the U.S. No. 1 grade but is 
considered a defect under the U.S. Extra Fancy and U.S. Fancy grades). 
The Fuji apple

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shippers feel that since the presence of invisible water core is 
usually required for Asian markets, and since the standards presently 
define invisible water core in the U.S. Extra Fancy and U.S. Fancy 
grades as a defect, the standards prevent them from providing the buyer 
with a high quality product.
    In addition, the Canadian government maintains Canadian Import 
Requirements on certain commodities shipped from the U.S. into Canada. 
One of these commodities is apples. Due to U.S. requirements, apples 
shipped to Canada must meet the requirements of the U.S. Apple and Pear 
Export Act. However, in addition, apples shipped to Canada must also 
meet Canadian Import requirements which in turn require the apples meet 
the U.S. Condition Standards for Export. According to the NHC, ``As a 
consequence, our industry's efforts to meet current Canadian demand for 
Fuji apples are being severely curtailed.'' Furthermore, the USAA has 
requested ``that you (USDA) make this change immediately since the 
regulation currently serves as an administrative barrier to trade with 
Canada, which is the industry's third largest export market behind 
Taiwan and Mexico.''
    Therefore, as a result of a request made by both the NHC and the 
USAA, the following changes are being made to the U.S. Standards for 
Grades of Apples and the U.S. Condition Standards for Export. Sections 
51.300 and 51.301, U.S. Extra Fancy and U.S. Fancy grades respectively, 
will be revised by changing the statement for ``free from damage by 
invisible water core after January 31st of the year following the year 
of production'' by adding ``except for the Fuji variety of apples. 
Invisible water core shall not be scored against the Fuji variety of 
apples under any circumstances.''
    Section 51.319, paragraph (f), the definition for damage by 
invisible water core, shall be revised by adding the following 
sentence: ``Invisible water core shall not be scored as damage against 
the Fuji variety of apples under any circumstances.''
    In addition, section 51.323, paragraph (c) of the U.S. Condition 
Standards for Export states that ``Not more than 5 percent of the 
apples in any lot shall be affected by scald, internal breakdown, 
freezing injury, or decay; or damage by water core, * * *'' This 
paragraph will be revised by moving water core to the end of the 
paragraph and adding a statement to allow an exemption for Fuji variety 
apples. Thus, paragraph (c) will now read, ``Not more than a total of 5 
percent of the apples in any lot shall be affected by scald, internal 
breakdown, freezing injury, or decay; or damage by bitter pit, Jonathan 
spot, water core, except that invisible water core shall not be scored 
as damage when these standards are applied to the Fuji variety of 
apples, or other condition factors: Provided, That:''
    The Agency will make copies of this rulemaking readily available 
for any interested person or party upon request. In addition, it is 
intended that this action will be publicized through various actions 
and committees of the NHC and the USAA. Also, the Agency will 
distribute copies of this rulemaking to various apple industry members. 
Finally, interested persons are invited to submit information on the 
regulatory and informational impacts of this action on small 
businesses.
    AMS has considered alternatives to issuing this interim final rule. 
The Agency has considered conducting no action at all in regard to the 
request. However, as present reports indicate, the Fuji volume 
production is increasing on a yearly basis as well as exports of Fuji 
apples from this country. No action at all by the Agency could result 
in further lost foreign market sales for Fuji growers, shippers, or 
handlers.
    Pursuant to 5 U.S.C. 553, it is 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 30 days after publication in the Federal Register because: 
(1) This year's holdings as well as projected holdings for the Fuji 
apple are on the increase. Therefore more apples are available longer; 
(2) it would not be beneficial for the quality of the fruit to 
withstand storage for the length of a 30 day effective date as well as 
a comment period; (3) the changes being made in this interim final rule 
only affect the Fuji variety of apple and the requests for these 
changes is being made by two trade associations that represent the 
majority of the Fuji handlers; (4) this interim final rule provides a 
60 day comment period, and all comments timely received will be 
considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 51

    Agricultural commodities, Food grades and standards, Fruits, Nuts, 
Reporting and recordkeeping requirements, Trees, Vegetables.

    For reasons set forth in the preamble, 7 CFR Part 51 is amended as 
follows:

PART 51--[AMENDED]

    1. The authority citation for Part 51 continues to read as follows:

    Authority: 7 U.S.C. 1621-1627.

    2. Section 51.300 is revised to read as follows:


Sec. 51.300  U.S. Extra Fancy.

    ``U.S. Extra Fancy'' consists of apples of one variety which are 
mature but not overripe, carefully hand-picked, clean, fairly well 
formed; free from decay, internal browning, internal breakdown, scald, 
scab, bitter pit, Jonathan spot, freezing injury, visible water core, 
and broken skins and bruises except those which are slight and incident 
to proper handling and packing. The apples are also free from injury 
caused by smooth net-like russeting, sunburn or sprayburn, limb rubs, 
hail, drought spots, scars, disease, insects, or other means; and free 
from damage by smooth solid, slightly rough or rough russeting, or stem 
or calyx cracks, and free from damage by invisible water core after 
January 31st of the year following the year of production except for 
the Fuji variety of apples. Invisible water core shall not be scored 
against the Fuji variety of apples under any circumstances. Each apple 
of this grade has the amount of color specified in Sec. 51.305 for the 
variety. (See Secs. 51.305 and 51.307.)
    3. Section 51.301 is revised to read as follows:


Sec. 51.301  U.S. Fancy.

    ``U.S. Fancy'' consists of apples of one variety which are mature 
but not overripe, carefully hand-picked, clean, fairly well formed; 
free from decay, internal browning, internal breakdown, bitter pit, 
Jonathan spot, scald, freezing injury, visible water core, and broken 
skins and bruises except those which are incident to proper handling 
and packing. The apples are also free from damage caused by russeting, 
sunburn or sprayburn, limb rubs, hail, drought spots, scars, stem or 
calyx cracks, disease, insects, damage by other means, or invisible 
water core after January 31st of the year following the year of 
production, except for the Fuji variety of apples. Invisible water core 
shall not be scored against the Fuji variety of apples under any 
circumstances. Each apple of this grade has the amount of color 
specified in Sec. 51.305 for the variety. (See Secs. 51.305 and 
51.307.)
    4. In Sec. 51.319, paragraph (f) is revised to read as follows:


Sec. 51.319  Damage.

* * * * *

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    (f) Invisible water core existing around the core and extending to 
water core in the vascular bundles; or surrounding the vascular bundles 
when the affected areas surrounding three or more vascular bundles meet 
or coalesce; or existing in more than slight degree outside the 
circular area formed by the vascular bundles. Provided, That invisible 
water core shall not be scored as damage against the Fuji variety of 
apples under any circumstances.
* * * * *
    5. In Sec. 51.323 paragraph (c) introductory text is revised to 
read as follows.


Sec. 51.323  U.S. Condition Standards for Export.\4\
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    \4\ These standards may be applied to domestic shipments of 
apples as well as export lots, and may be referred to as ``U.S. 
Condition Standards.''
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 * * * * *
    (c) Not more than a total of 5 percent of the apples in any lot 
shall be affected by scald, internal breakdown, freezing injury, or 
decay; or damage by bitter pit, Jonathan spot, water core except that 
invisible water core shall not be scored as damage when these condition 
standards are applied to the Fuji variety of apples, or other condition 
factors: Provided, That:
* * * * *

    Dated: May 22, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-13968 Filed 5-28-97; 8:45 am]
BILLING CODE 3410-02-P