[Federal Register Volume 63, Number 201 (Monday, October 19, 1998)]
[Rules and Regulations]
[Pages 55779-55783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27892]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 958

[Docket No. FV97-958-2 FR]


Onions Grown in Certain Designated Counties in Idaho, and Malheur 
County, Oregon, and Imported Onions; Increase in Grade Requirement for 
White Onions

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule increases the minimum grade requirement for white 
onion varieties handled under the Idaho-Eastern Oregon onion marketing 
order from U.S. No. 2 or U.S. Commercial to U.S. No. 1. The marketing 
order regulates the handling of onions produced in certain designated 
counties in Idaho, and Malheur County, Oregon, and is administered 
locally by the Idaho-Eastern Oregon Onion Committee (Committee). This 
rule is intended to improve the marketing of white onions, increase 
returns to producers, and provide consumers with higher quality onions. 
As provided under section 8e of the Agricultural Marketing Agreement 
Act of 1937, the increase in the minimum grade requirement also applies 
to all imported varieties of white onions.

EFFECTIVE DATE: November 9, 1998.

FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA, 1220 SW Third Avenue, room 369, 
Portland, Oregon 97204-2807; telephone: (503) 326-2724, Fax: (503) 326-
7440; and George J. Kelhart, Marketing Order Administration Branch, 
Fruit and Vegetable Programs, AMS, USDA, room 2525-S, PO Box 96456, 
Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202) 205-
6632. Small businesses may request information on compliance with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, PO Box 
96456, Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202) 
205-6632.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement No. 130 and Marketing Order No. 958, both as amended (7 CFR 
part 958), regulating the handling of onions grown in certain 
designated counties in Idaho, and Malheur County, Oregon, 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 onions, 
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 final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have retroactive 
effect. This rule will

[[Page 55780]]

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.
    This final rule increases the minimum grade requirement for white 
onion varieties grown in the defined production area and handled under 
order authority. This rule, unanimously recommended by the Committee at 
its June 19, 1997, meeting, requires that all white onion varieties 
handled be U.S. No. 1 grade. The previous regulation permitted the 
handling of U.S. No. 2 grade and U.S. Commercial grade white onions as 
well. As provided under section 8e of the Agricultural Marketing 
Agreement Act of 1937, the increase in the minimum grade requirement 
also applies to all imported varieties of white onions.
    Sections 958.51 and 958.52 of the order provide authority for the 
establishment and modification of regulations applicable to the 
handling of particular grades of onions. Section 958.328(a)(1) 
establishes the grade requirements for white onions handled subject to 
the Idaho-Eastern Oregon onion marketing order. Such grade requirements 
are based on the U.S. Standards for Grades of Onions (Other than 
Bermuda-Granex-Grano and Creole Types) (7 CFR part 51.2830 et seq.), or 
the U.S. Standards for Grades of Bermuda-Granex-Grano Type Onions (7 
CFR part 51.3195 et seq.). Previously, Sec. 958.328(a)(1) required that 
white onion varieties be: (1) U.S. No. 2 or U.S. Commercial, 1 inch 
minimum to 2 inches maximum diameter; (2) U.S. No. 2 or U.S. 
Commercial, if not more than 30 percent of the lot is comprised of 
onions of U.S. No. 1 quality, and at least 1\1/2\ inches minimum 
diameter; or (3) U.S. No. 1, at least 1\1/2\ inches minimum diameter.
    This final rule requires that all bags or other containers of white 
onion varieties shipped subject to order requirements be either: (1) 
U.S. No. 1, 1 inch minimum to 2 inches maximum diameter; or (2) U.S. 
No. 1, at least 1\1/2\ inches minimum diameter. Commingling of these 
two categories is not allowed. Exemptions under the order for special 
purpose shipments in Sec. 958.328(e), and shipments qualifying for a 
minimum quantity exemption in Sec. 958.328(g), continue to apply when 
applicable.
    The Committee justification for its recommendation indicated that 
shipments of U.S. No. 2 and U.S. Commercial grade white onions have had 
a negative impact on producer returns and have been a factor in 
decreasing this industry's share of the fresh domestic white onion 
market. In addition, the Committee stated that consumers of white 
onions traditionally demand a quality product and that U.S. No. 2 and 
U.S. Commercial grade white onions have poor consumer acceptance.
    The Committee stated that producers seldom profit from U.S. No. 2 
or U.S. Commercial grade white onion sales, and as a consequence, 
common business practice for many is to discard such onions as culls 
following harvest. Based upon comments made by handlers and receivers 
of white onions, the Committee reported that shipments of low quality 
U.S. No. 2 and U.S. Commercial grade white onions have a depressing 
influence on the price of the higher quality U.S. No. 1 grade white 
onions. The free-on-board (f.o.b.) price for U.S. No. 2 white onions 
usually averages about one-half the f.o.b. price of U.S. No. 1 white 
onions, reflecting the weak demand for U.S. No. 2 white onions in fresh 
markets. Furthermore, over the last several years there has been 
increased competition from white onions grown in Nevada, Washington, 
Colorado, and Utah. The quality produced and marketed from those States 
is excellent. Thus, a higher grade for white onions grown in Idaho-
Eastern Oregon should help this industry compete more effectively and 
increase demand through stronger confidence in the quality of Idaho-
Eastern Oregon white onions.
    Between the 1986/87 and the 1996/97 marketing seasons, an annual 
average of 336,000 hundredweight of white onions, representing 3.9 
percent of the total of all onion varieties, has been shipped from the 
Idaho-Eastern Oregon production area. The annual average of all Idaho-
Eastern Oregon onion shipments for this period, including white, 
yellow, and red onion varieties, is 9,517,500 hundredweight. During the 
same period of time, shipments of Idaho-Eastern Oregon U.S. No. 2 white 
onions averaged 3,807 hundredweight per year, or approximately an 
annual average of 1.2 percent of white Idaho-Eastern Oregon onion 
shipments and an annual average of .04 percent of all Idaho-Eastern 
Oregon onion shipments. The majority, or nearly 99 percent, of the 
white onions shipped from this production area are U.S. No. 1 grade. 
Onions from the Idaho-Eastern Oregon production area are shipped 
throughout most of the year. Most Idaho-Eastern Oregon white onions are 
marketed during the months of September, October, and November, with 
significant additional volume through February. Preliminary information 
pertaining to the 1998/99 shipping season indicates that the f.o.b. 
price for onions this season could average $13.10 per hundredweight.
    As mentioned earlier, section 8e of the Act requires that when 
certain domestically produced commodities, including onions, are 
regulated under a Federal marketing order, imports of that commodity 
must meet the same or comparable grade, size, quality, or maturity 
requirements. Section 8e also provides that whenever two or more 
marketing orders regulating the same commodity produced in different 
areas of the United States are concurrently in effect, a determination 
must be made as to which of the areas produces the commodity in most 
direct competition with the imported commodity. Imports must then meet 
the requirements established for that particular area.
    Grade, size, quality, and maturity regulations have been issued 
regularly under both Marketing Order No. 958 and Marketing Order No. 
959, which regulates the handling of onions grown in South Texas, since 
the marketing orders were established. The current import regulation 
specifies that import requirements for onions are to be based on the 
seasonal categories of onions grown in both marketing order areas. The 
import regulation specifies that imported onions must meet the 
requirements of the Idaho-Eastern Oregon onion marketing order during 
the period June 5 through March 9 and the South Texas onion marketing 
order during the period March 10 through June 4 each season. This final 
rule changes the import requirements for the period June 5 through 
March 9 of each marketing year to provide that all

[[Page 55781]]

imported white onion varieties must be U.S. No. 1 grade. While no 
changes are required in the language of Sec. 980.117, all white onion 
varieties imported during this period are required to meet the modified 
grade requirement.
    White onions are imported into the United States throughout the 
year from a number of different countries. By far the largest source of 
all imported onions is Mexico. Mexican white onions enter the United 
States from November through July, with the heaviest volumes moving 
during the months of December through April. The annual average volume 
of all Mexican onions imported into the United States between 1986 and 
1996 was 3,333,150 hundredweight, while the annual average volume for 
all imported onions from all sources during the same period was 
4,040,004 hundredweight.
    Other sources of imported onions are Canada, Chile, New Zealand, 
France, Guatemala, Belgium, Morocco, and the Netherlands. In 1996 and 
1997, imports from Canada totaled 654,728 hundredweight and 498,950 
hundredweight, imports from Chile totaled 139,927 hundredweight and 
85,914 hundredweight, and those from New Zealand totaled 13,007 
hundredweight and 20,172 hundredweight, respectively. Also during 1996 
and 1997, onion imports from France totaled 82,034 hundredweight and 
102,956 hundredweight, imports from Guatemala were 32,540 hundredweight 
and 32,474 hundredweight, imports from Belgium totaled 1,565 
hundredweight and 2,386 hundredweight, Moroccan imports totaled 287 
hundredweight and 948 hundredweight, and imports from the Netherlands 
totaled 26,852 and 26,544 hundredweight, respectively.
    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. Accordingly, the AMS 
has prepared this final regulatory flexibility analysis.
    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 which regulate the handling 
of domestically produced products.
    There are approximately 35 handlers of Idaho-Eastern Oregon onions 
who are subject to regulation under the order and approximately 260 
onion producers, including approximately 80 producers of white onions, 
in the regulated area. In addition, approximately 150 importers of 
onions are subject to import regulations and could be affected by this 
final rule. Small agricultural service firms 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. 
Approximately 90 percent of the handlers and 70 percent of the 
producers of Idaho-Eastern Oregon white onions may be classified as 
small entities. Although it is not known how many importers of white 
onions may be classified as small entities, it can be assumed that a 
number of the 150 importers could be classified as such.
    This final rule increases the minimum grade requirement for white 
onion varieties grown in the defined production area and handled under 
order authority. This rule, unanimously recommended by the Committee at 
its June 19, 1997, meeting, requires that all white onion varieties 
handled be U.S. No. 1 grade. The previous regulation permitted the 
handling of U.S. No. 2 grade and U.S. Commercial grade white onions as 
well. As provided under section 8e of the Agricultural Marketing 
Agreement Act of 1937, the increase in the minimum grade requirement 
also applies to all imported varieties of white onions.
    At the meeting the Committee discussed the impact its 
recommendation might have on handlers and producers in terms of cost. 
The Committee stated that producers seldom profit from U.S. No. 2 or 
U.S. Commercial grade white onion sales, and as a consequence, common 
business practice for many is to discard such onions as culls following 
harvest.
    Based upon comments made by handlers and receivers of white onions, 
the Committee reported that shipments of low quality U.S. No. 2 and 
U.S. Commercial grade white onions have a depressing influence on the 
price of the higher quality U.S. No. 1 grade white onions. The f.o.b. 
price for U.S. No. 2 white onions usually averages about one-half the 
f.o.b. price of U.S. No. 1 white onions, reflecting the weak demand for 
U.S. No. 2 white onions in fresh markets. Furthermore, over the last 
several years there has been increased competition from white onions 
grown in Nevada, Washington, Colorado, and Utah. The quality produced 
and marketed from those States is excellent. Thus, a higher grade for 
white onions grown in Idaho-Eastern Oregon should help this industry 
compete more effectively and increase demand through stronger 
confidence in the quality of Idaho-Eastern Oregon white onions. 
Preliminary information pertaining to the 1998-99 shipping season 
indicates that the f.o.b. price for onions this season could average 
$13.10 per hundredweight.
    While this rule may impose some additional costs on handlers and 
producers, the costs are expected to be minimal, and should be offset 
by the benefits of the rule. This final rule is expected to similarly 
impact importers of white onions. The Committee believes that this 
modification will benefit consumers, producers, and handlers. The 
benefits of this rule are not expected to be disproportionately greater 
or lesser for small entities than for large entities.
    As alternatives to the proposal, the Committee discussed both 
leaving the regulations unmodified and using voluntary methods to solve 
the problem. Both alternatives were rejected. The prevailing opinion 
was that market confidence and producer income would continue to erode 
without the implementation of this rule. The majority of Committee 
members stated that voluntary measures had not been effective in the 
past.
    Section 8e of the Act requires that when certain domestically 
produced commodities, including onions, are regulated under a Federal 
marketing order, imports of that commodity must meet the same or 
comparable grade, size, quality, or maturity requirements. Section 8e 
also provides that whenever two or more marketing orders regulating the 
same commodity produced in different areas of the United States are 
concurrently in effect, the Secretary shall determine which of the 
areas produces the commodity in more direct competition with the 
imported commodity. Imports must then meet the requirements established 
for the particular area.
    Grade, size, quality, and maturity regulations have been issued 
regularly under both Marketing Order No. 958 and Marketing Order No. 
959, which regulates the handling of onions grown in South Texas, since 
the orders were established. The current import regulation specifies 
that import requirements for onions are to be based on the seasonal 
categories of onions grown in both marketing order areas.

[[Page 55782]]

The import regulations specify that imported onions must meet the 
requirements of the Idaho-Eastern Oregon onion order during the period 
June 5 through March 9 each season and the South Texas onion order 
during the period March 10 through June 4 each season. This final rule 
changes the import requirements for the period June 5 through March 9 
of each marketing year to provide that all imported white onion 
varieties must be U.S. No. 1 grade.
    This action does not impose any additional reporting or 
recordkeeping requirements on either small or large handlers. As with 
all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    In addition, the Committee's meeting was widely publicized 
throughout the Idaho-Eastern Oregon onion industry and all interested 
persons were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the June 19, 
1997, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue. Finally, interested 
persons were invited to submit information on the regulatory and 
informational impacts of this action on small businesses. Five comments 
were received and were of the view that the proposed increase in the 
minimum grade would not have a negative impact on small entities. These 
comments are discussed in more detail later in this document.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this rule.
    Both an advance notice of proposed rulemaking and a proposed rule 
were published in the Federal Register on February 3, 1998 (63 FR 
5472), and on July 2, 1998 (63 FR 36194), respectively. Both 
publications provided 60-day comment periods to allow interested 
persons the opportunity to comment on the volume and grade of imported 
white onions, as well as other aspects of the potential grade increase, 
including its probable regulatory and economic impact on small business 
entities. Copies of the publications were faxed and mailed to the 
Committee office, which in turn notified Committee and Idaho-Eastern 
Oregon onion industry members of the recommendation and proposed 
rulemaking. The Department also provided copies of the publications to 
the administrative offices of the Walla Walla Sweet Onion Committee, 
the South Texas Onion Committee, and the Vidalia Onion Committee, as 
well as to the World Trade Organization, European Commission, Brussels, 
Belgium, onion importers on AMS' mailing list, to foreign embassies of 
countries known to be interested in exporting onions to the United 
States, and to the National Institute of Standards and Technology for 
dissemination to the secretariat of the World Trade Organization. In 
addition, the Committee's meetings were widely publicized throughout 
the Idaho-Eastern Oregon onion industry and all interested persons were 
invited to attend and participate on all issues. Copies of the advanced 
notice and the proposed rule were also made available on the Internet 
by the Department as well as by the U.S. Government Printing Office.
    Five comments were received in regard to the advanced notice (63 FR 
5472). Four of the comments were supportive of the Committee's 
recommendation. The Idaho-Eastern Oregon Onion Committee reaffirmed its 
unanimous recommendation in favor of increasing the minimum grade for 
white onions from U.S. No. 2 or U.S. Commercial to U.S. No. 1. The 
South Texas Onion Committee, administering Marketing Order No. 959, 
expressed its support of the recommended modification as well. The 
South Texas Onion Committee commented that when the South Texas 
industry enters the market in March of each year, the market has been 
flooded with inferior quality white onions from both Mexico and Idaho-
Eastern Oregon, and that the onion industries and consumers would 
benefit from the minimum grade increase. The minimum grade requirement 
for white onion varieties handled under the South Texas marketing order 
is a modified U.S. No. 1 grade. This rule will increase the minimum 
grade requirement for Idaho-Eastern Oregon onions, resulting in the 
respective minimum grade requirements becoming more similar.
    Also commenting in favor of the Committee's recommendation were a 
South Texas onion handler, and an association representing Texas onion 
handlers and importers of Mexican onions. Both commenters are located 
in Mission, Texas. The handler commented that the recommended 
modification would allow the South Texas industry the necessary 
confidence to continue to produce onions for a market free from the 
negative consumer reaction associated with poor quality white onions. 
The association also added its support of the recommended minimum grade 
increase. The association stated that it has within its membership 
approximately 21 South Texas onion handlers, most of whom also import 
onions from Mexico. The commenter added that the association has 
numerous members who only handle imported produce, including white 
onions. The commenter noted further that in the modern competitive 
produce market, consumers must be provided with the best quality 
produce available.
    A comment was also received from the European Commission, Brussels, 
Belgium, on behalf of the European Community. That comment stated that 
the proposal aims at increasing the minimum diameter size requirement 
for imported onions from 2.54 to 2.79 centimeters for the period June 5 
through March 9 of each year, and objected to such action. However, the 
Committee's recommendation was to increase the minimum grade for Idaho-
Eastern Oregon white onions during the period June 5 through March 9 
from U.S. No. 2 to U.S. No. 1, and did not include a modification to 
the minimum diameter size itself, which continues to be 1 inch or 2.54 
centimeters.
    In conjunction with the issuance of the advance notice and request 
for comment, the Texas Cooperative Inspection Program monitored white 
onions imported from Mexico during the period December 1, 1997, through 
March 9, 1998. This process was conducted at the request of the AMS to 
determine the quantity of imported white onions potentially impacted by 
the Committee's recommendation. An analysis of the information provided 
by the Inspection Program indicates that approximately 98 percent of 
the white onions imported from Mexico during the test period met U.S. 
No. 1 grade. The balance of the imported white onions during this 
period either met U.S. Commercial grade or failed to meet the minimum 
of U.S. No. 2 grade. There were no U.S. No. 2 grade white onions 
imported from Mexico during this period. During the test period, a 
total of 1,006,279 50-pound containers were offered for importation. A 
total of 948,069 50-pound containers graded U.S. No. 1, 11,427 50-pound 
containers graded U.S. Commercial, and 10,783 50-pound containers 
failed to meet the current minimum grade requirement of U.S. No. 2.
    Five comments were also received in regard to the proposed rule (63 
FR 36194). Comments were received from the South Texas Onion Committee, 
two Texas produce marketing firms, and two Texas producers. All five 
commenters expressed support for the proposal. Furthermore, each 
commenter expressed the view that the increase in

[[Page 55783]]

the minimum grade for Idaho-Eastern Oregon white onions will not have a 
negative impact on small entities, and that the change will in fact 
assist producers from all growing regions in providing better quality 
white onions to consumers.
    Accordingly, based on the comments received, no changes will be 
made to the rule as proposed, except for non-substantive format changes 
to conform to the current scheme in Sec. 958.328.
    Idaho-Eastern Oregon onion handlers have just begun shipping 1998-
99 crop white onions, and they want to accrue the benefits anticipated. 
The Department understands that very little modification must be made 
to existing packing equipment and sorting procedures by domestic 
handlers and exporters/importers to meet the new grade requirement. 
However, sufficient time must be provided for the Idaho-Eastern Oregon 
and import onion industries to comply with the new grade requirement 
and to allow white onions already picked and packed, and certified as 
meeting the lower minimum grade requirements to be shipped. To allow 
this to occur and to allow handlers and exporters time to adjust their 
sorting and packing lines to meet the higher grade, the Department has 
decided that the effective date of this action should be November 9, 
1998. This effective date is reasonable and will allow both the 
domestic and imported onion industries sufficient time to adjust to the 
new grade requirement and to ship any onions that are already picked 
and packed.
    In view of all of the foregoing, the Department has concluded that 
the increase in the minimum grade requirement to U.S. No. 1 will 
advance the interests of the Idaho-Eastern Oregon and foreign onion 
industries and should be implemented.
    In accordance with the 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 recommendation submitted by the Committee, the comments 
received, 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.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because: (1) Idaho-Eastern Oregon onion 
handlers are aware of this action, which was unanimously recommended by 
the Committee, and are prepared to comply with the new grade 
requirement; (2) Handlers, exporters, importers, and other interested 
persons were given an opportunity to provide input through the advance 
notice of proposed rulemaking and the proposed rule; (3) the grade 
increase needs to be in place to cover the balance of the 1998-99 white 
onion shipping season so that the Idaho-Eastern Oregon onion industry 
can take advantage of the anticipated benefits; and (4) an adequate 
amount of time has been provided for handlers and importers to adjust 
their packing and sorting lines to meet the higher grade requirement.

List of Subjects in 7 CFR Part 958

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 958 is 
amended as follows:

PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND 
MALHEUR COUNTY, OREGON

    1. The authority citation for 7 CFR part 958 continues to read as 
follows:

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

    2. Section 958.328 is amended by revising paragraph (a)(1) to read 
as follows:


Sec. 958.328  Handling Regulations.

* * * * *
    (a) Grade and Size requirements--(1) White varieties. Shall be 
either:
    (i) U.S. No. 1, 1 inch minimum to 2 inches maximum diameter; or
    (ii) U.S. No. 1, at least 1\1/2\ inches minimum diameter. However, 
neither of these two categories of onions may be commingled in the same 
bag or other container.
* * * * *
    Dated: October 13, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-27892 Filed 10-16-98; 8:45 am]
BILLING CODE 3410-02-P