[Federal Register Volume 63, Number 217 (Tuesday, November 10, 1998)]
[Rules and Regulations]
[Pages 62919-62923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30115]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Docket No. FV99-905-1 IFR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida 
and Imported Grapefruit; Relaxation of the Minimum Size Requirement for 
Red Seedless Grapefruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule makes changes in the regulations under the Florida 
citrus marketing order and the grapefruit import regulations. This rule 
relaxes the minimum size requirement for red seedless grapefruit and 
for red seedless grapefruit imported into the United States from size 
48 (3\9/16\ inches diameter) to size 56 (3\5/16\ inches diameter). 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 allows handlers and importers to ship size 56 red seedless 
grapefruit through November 7, 1999, and is expected to maximize 
grapefruit shipments to fresh market channels.

DATES: Effective November 9, 1998. Comments received by January 11, 
1999 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 to the Docket Clerk, Fruit 
and Vegetable Programs, AMS, USDA, Room 2525-S, P.O. Box 96456, 
Washington, D.C. 20090-6456; Fax: (202) 205-6632; or E-mail: 
[email protected]. 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: William G. Pimental, Southeast 
Marketing Field Office, F&V, AMS, USDA, P.O. Box 2276, Winter Haven, 
Florida 33883; telephone: (941) 299-

[[Page 62920]]

4770, Fax: (941) 299-5169; or George Kelhart, Technical Advisor, 
Marketing Order Administration Branch, F&V, AMS, USDA, room 2522-S, 
P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 720-2491, 
Fax: (202) 205-6632. Small businesses may request information on 
complying with this regulation, or obtain a guide on complying with 
fruit, vegetable, and specialty crop marketing agreements and orders, 
by contacting Jay Guerber, Marketing Order Administration Branch, Fruit 
and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456, 
Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 205-
6632, or E-mail: Jay__N__G[email protected]. You may also view the 
marketing agreements and orders small business compliance guide at the 
following web site: http://www.ams.usda.gov/fv/moab.html.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR 
Part 905), regulating the handling of oranges, grapefruit, tangerines, 
and tangelos grown in Florida, hereinafter referred to as the 
``order.'' The marketing agreement and order are 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 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 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.
    The order for Florida citrus provides for the establishment of 
minimum grade and size requirements with the concurrence of the 
Secretary. The minimum grade and size requirements are designed to 
provide fresh markets with fruit of acceptable quality and size, 
thereby maintaining consumer confidence for fresh Florida citrus. This 
contributes to stable marketing conditions in the interest of growers, 
handlers, and consumers, and helps increase returns to Florida citrus 
growers. The current minimum grade standard for red seedless grapefruit 
is U.S. No. 1. The current minimum size requirement for domestic 
shipments is size 56 (at least 3\5/16\ inches in diameter) through 
November 8, 1998, and size 48 (3\9/16\ inches in diameter) thereafter. 
The current minimum size for export shipments is size 56 throughout the 
year.
    This interim final rule invites comments on a change to the order's 
rules and regulations relaxing the minimum size requirement for 
domestic shipments of red seedless grapefruit. This action allows for 
the continued shipment of size 56 red seedless grapefruit. This rule 
relaxes the minimum size from size 48 (3\9/16\ inches diameter) to size 
56 (3\5/16\ inches diameter) through November 7, 1999. Absent this 
change, the minimum size will revert to size 48 (3\9/16\ inches 
diameter) November 9, 1998. The Committee met on September 3, 1998, and 
unanimously recommended this action.
    Section 905.52 of the order, in part, authorizes the Committee to 
recommend minimum grade and size regulations to the Secretary. Section 
905.306 (7 CFR part 905.306; 63 FR 19379, April 20, 1998) specifies 
minimum grade and size requirements for different varieties of fresh 
Florida grapefruit. Such requirements for domestic shipments are 
specified in Sec. 905.306 in Table I of paragraph (a), and for export 
shipments in Table II of paragraph (b). This rule adjusts Table I to 
establish a minimum size of 56 through November 7, 1999. Minimum grade 
and size requirements for grapefruit imported into the United States 
are currently in effect under Sec. 944.106 (7 CFR part 944.106; 63 FR 
19379, April 20, 1998). This rule also adjusts Sec. 944.106 to 
establish a minimum size of 56 through November 7, 1999. Export 
requirements for Florida red seedless grapefruit are not changed by 
this rule.
    In making its recommendation, the Committee considered estimated 
supply and demand. The supply of red seedless grapefruit is expected to 
be slightly higher than last season based on the Department's official 
crop estimate of 31,500,000 1\3/5\ bushel boxes as compared to last 
season's utilized supply of 30,600,000 boxes. The fruit is expected to 
be high quality with a good appearance. The Committee reports that it 
expects fresh market demand to be sufficient to permit the shipment of 
size 56 red seedless grapefruit grown in Florida during the entire 
1998-99 season.
    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 
1998-99 season, and will provide for the maximization of shipments to 
fresh market channels.
    The Committee believes that domestic markets have been developed 
for size 56 fruit and that the industry should continue to supply those 
markets. This minimum size change pertains to the domestic market, and 
does not change the minimum size for export shipments which will 
continue at size 56 throughout the season. The largest market for size 
56 small red grapefruit is for export.
    Committee members stated that during the first 11 weeks of the 
season (September 21 through December 6) there is a volume regulation 
in effect limiting the volume of small red seedless grapefruit entering 
the fresh market that has been successful in moving smaller-sized fruit 
to those markets demanding such sizes (63 FR 51511, September 28, 
1998). The Committee agreed that this regulation has been helpful in 
reducing the negative effects of size 56 on the domestic market.

[[Page 62921]]

    In addition, the currency and economic problems currently facing 
the Pacific Rim countries remain a concern. These countries 
traditionally have been good markets for size 56 grapefruit. Current 
conditions there could reduce demand for grapefruit, and alternative 
outlets need to be available. It will be advantageous to have the 
ability to ship size 56 red seedless grapefruit to the domestic market 
should problems materialize in the export market.
    Based on available information, the Committee unanimously 
recommended that the minimum size for shipping red seedless grapefruit 
to the domestic market should be size 56 through November 7, 1999. 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 anticipated market demand for the 1998-99 
season. Additionally, importers will be favorably affected by this 
change since the relaxation of the minimum size regulation will also 
apply to imported grapefruit.
    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 relaxes the minimum size requirement under the domestic 
handling regulations, a corresponding change to the import regulations 
is necessary.
    Minimum grade and size requirements for grapefruit imported into 
the United States are currently in effect under Sec. 944.106. This rule 
relaxes the minimum size requirement for imported red seedless 
grapefruit to 3\5/16\ inches in diameter (size 56) until November 7, 
1999, to reflect the relaxation being made under the order for red 
seedless grapefruit grown in Florida.
    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, AMS has 
prepared this initial 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 the 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 80 grapefruit handlers subject to 
regulation under the order, approximately 11,000 growers of citrus in 
the regulated area, and about 25 grapefruit importers. Small 
agricultural service firms, which includes handlers and importers, have 
been defined by the Small Business Administration (SBA) 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 (13 CFR 121.601).
    Based on the industry and Committee data for the 1997-98 season, 
the average annual f.o.b. price for fresh Florida red seedless 
grapefruit during the 1997-98 season was around $6.30 per \4/5\ bushel 
cartons, and total fresh shipments for the 1997-98 season are estimated 
at 15.5 million cartons of red seedless grapefruit. Approximately 20 
percent of all handlers handled 60 percent of Florida grapefruit 
shipments. In addition, many of these handlers ship other citrus fruit 
and products which are not included in Committee data but would 
contribute further to handler receipts. Using the average f.o.b. price, 
about 80 percent of the Florida grapefruit handlers could be considered 
small businesses under the SBA definition and about 20 percent of the 
handlers could be considered large businesses. The majority of 
grapefruit handlers, growers, and importers may be classified as small 
entities.
    Florida shipped approximately 42,410,000 \4/5\ bushel cartons of 
grapefruit to the fresh market during the 1997-98 season. Of these 
cartons, about 21,860,000 were exported. In the past three seasons, 
domestic shipments of Florida grapefruit averaged about 21,148,000 
cartons. During the period 1991 through 1996, imports have averaged 
734,800 cartons a season. Imports account for less than five percent of 
domestic shipments.
    Section 905.52 of the order, in part, authorizes the Committee to 
recommend minimum grade and size regulations to the Secretary. Section 
905.306 (63 FR 19379, April 20, 1998) specifies minimum grade and size 
requirements for different varieties of fresh Florida grapefruit. This 
rule relaxes the minimum size requirement for domestic shipments of red 
seedless grapefruit from size 48 (3\9/16\ inches diameter) to size 56 
(3\5/16\ inches diameter) through November 7, 1999. No change is being 
made in the minimum size 56 requirement for export shipments. Absent 
this rule, the minimum size requirement for domestic shipments will 
revert to size 48 on November 9, 1998. The motion to allow shipments of 
size 56 red seedless grapefruit through November 7, 1999, was passed by 
the Committee unanimously. In addition, there is a volume regulation in 
effect for the first 11 weeks of this season (September 21 through 
December 6) that limits the volume of small red seedless grapefruit 
entering the fresh market (63 FR 51511; September 28, 1998).
    This rule will have a positive impact on affected entities. This 
action allows for the continued shipment of size 56 red seedless 
grapefruit. This change is not expected to increase costs associated 
with the order requirements.
    This rule relaxes the minimum size from size 48 (3\9/16\ inches 
diameter) to size 56 (3\5/16\ inches diameter) through November 7, 
1999. This change will allow handlers to continue to ship 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 1998-99 season, and will 
provide for the maximization of shipments to fresh market channels.
    The currency and economic problems currently facing the Pacific Rim 
countries remain a concern. These countries traditionally have been 
good markets for size 56 grapefruit. Current conditions there could 
reduce demand for grapefruit, and alternative outlets need to be 
available. It will be advantageous to have the ability to ship size 56 
red seedless grapefruit to the domestic market should problems 
materialize in the export market.
    This change will allow for the continued shipment of size 56 red 
seedless grapefruit. The opportunities and benefits of this rule are 
expected to be equally available to all grapefruit handlers, growers, 
and importers regardless of their size of operation.
    In 1996, imports of grapefruit totaled 15,000 tons (approximately 
705,880 cartons). The Bahamas were the principal source, accounting for 
95 percent of the total. Remaining imports were supplied by the 
Dominican Republic and Israel. Imported grapefruit enters the United 
States from October through May. Imports account for less than five 
percent of domestic shipments.
    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

[[Page 62922]]

meet the same or comparable grade, size, quality and maturity 
requirements. Because this rule changes the minimum size for domestic 
red seedless grapefruit shipments, this change will also be applicable 
to imported grapefruit. This rule relaxes the minimum size to size 56. 
This regulation will benefit importers to the same extent that it 
benefits Florida grapefruit producers and handlers because it allows 
shipments of size 56 red seedless grapefruit into U.S. markets through 
November 7, 1999.
    The Committee considered one alternative to this action. The 
Committee discussed relaxing the minimum size to size 56 on a permanent 
basis rather than just for a year. Members said that each season is 
different, and they prefer to consider this issue on a yearly basis. 
Therefore, this alternative was rejected.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large red seedless grapefruit handlers 
or importers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information collection 
requirements and duplication by industry and public sectors.
    In addition, the Department has not identified any relevant Federal 
rules that duplicate, overlap or conflict with this rule. However, red 
seedless grapefruit must meet the requirements as specified in the U.S. 
Standards for Grades of Florida Grapefruit (7 CFR 51.760 through 
51.784) issued under the Agricultural Marketing Act of 1946 (7 U.S.C. 
1621 through 1627).
    Further, the Committee's meeting was widely publicized throughout 
the citrus industry and all interested persons were invited to attend 
the meeting and participate in Committee deliberations. Like all 
Committee meetings, the September 3, 1998, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue. Finally, interested persons are invited to submit 
information on the regulatory and informational impacts of this action 
on small businesses.
    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 information, it is found that 
this interim final rule, as hereinafter set forth, will tend to 
effectuate the declared policy of the Act.
    This rule invites comments on a change to the size requirements 
currently prescribed under the marketing order for Florida citrus. Any 
comments received will be considered prior to finalization of this 
rule.
    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 action until 30 days after publication in the 
Federal Register because: (1) This rule relaxes the minimum size 
requirement for red seedless grapefruit grown in Florida and red 
seedless grapefruit imported into the United States; (2) Florida 
grapefruit handlers are aware of this action which was unanimously 
recommended by the Committee, and they will need no additional time to 
comply with the relaxed size requirement; (3) shipments of the 1998-99 
season Florida red seedless grapefruit crop are underway; and (4) this 
rule provides a 60-day comment period, and any comments received will 
be considered prior to any 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. In Sec. 905.306, Table I in paragraph (a) is amended by revising 
the entry under ``Grapefruit'' for ``Seedless, red'' to read as 
follows:


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

    (a) * * *

                                                     Table I
(1)                                    (2)..........................  (3)..........................          (4)
----------------------------------------------------------------------------------------------------------------
              Grapefruit
                          *         *         *         *         *         *         *
Seedless, red........................  11/9/98-11/7/99..............  U.S. No. 1...................      3\5/16\
                                       On and after 11/8/99.........  U.S. No. 1...................      3\9/16\
                          *         *         *         *         *         *         *
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* * * * *

PART 944--FRUITS; IMPORT REGULATIONS

    4. In Sec. 944.106, the table in paragraph (a) is amended by 
revising the entry for ``Seedless, red'' to read as follows:


Sec. 944.106  Grapefruit import regulation.

    (a) * * *

[[Page 62923]]



(1)                                    (2)..........................  (3)..........................          (4)
----------------------------------------------------------------------------------------------------------------
                          *         *         *         *         *         *         *
Seedless, red........................  11/9/98-11/7/99..............  U.S. No. 1...................      3\5/16\
                                       On and after 11/8/99.........  U.S. No. 1...................      3\9/16\
                          *         *         *         *         *         *         *
----------------------------------------------------------------------------------------------------------------

* * * * *
    Dated: November 4, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-30115 Filed 11-6-98; 9:44 am]
BILLING CODE 3410-02-P