[Federal Register Volume 63, Number 248 (Monday, December 28, 1998)]
[Proposed Rules]
[Pages 71403-71405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34208]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 63, No. 248 / Monday, December 28, 1998 / 
Proposed Rules  

[[Page 71403]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 944

[Docket No. FV98-944-1 PR]


Fruits; Import Regulations; Exemption of Grape Varieties From the 
Table Grape Import Regulation

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: This proposed rule would change the table grape import 
regulation by adding several grape varieties to the list of varieties 
specifically exempted from the grade, size, quality, and maturity 
requirements of the grape import regulation. The grape import 
regulation is based on the requirements implemented under a Federal 
marketing order for grapes grown in southeastern California. Currently, 
any variety of vinifera species table grapes, except Emperor, Calmeria, 
Almeria, and Ribier varieties, are subject to the requirements of the 
marketing order and the import regulation. The Emperor, Calmeria, 
Almeria, and Ribier varieties of grapes are exempted from regulations 
established under the marketing order and therefore the import 
regulation because they are not produced in the California production 
area. The grape varieties proposed to be added to the list of exempted 
varieties are genetically related to and/or possess characteristics 
similar to the four named varieties, and are not produced in the 
production area covered under the Federal marketing order. Also, one 
variety previously not produced in the production area would no longer 
be exempt because it is currently produced in the area covered by the 
marketing order. A complete list of exempted varieties would clarify 
the grape import regulation and make it easier for exporters and 
importers to make marketing decisions.

DATES: Comments must be received by February 26, 1999.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, PO. Box 
96456, Washington, DC 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 made available for public inspection in the Office 
of the Docket Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: George J. Kelhart, Marketing Order 
Administration Branch, F&V, 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 
proposed regulation by contacting: Jay Guerber, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, P.O. 
Box 96456, room 2525-S, Washington, DC 20090-6456; Telephone: (202) 
720-2491; Fax: (202) 205-6632.

SUPPLEMENTARY INFORMATION: This proposal to change the table grape 
import regulation (7 CFR 944.503; 63 FR 28475, May 26, 1998) is issued 
under section 8e of the Agricultural Marketing Agreement Act of 1937, 
as amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposal is not intended to have retroactive 
effect. This proposed rule would 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 
this proposed rule.
    Section 8e of the Act specifies that whenever certain specified 
commodities, including table grapes, are regulated under a Federal 
marketing order, imports of that commodity into the United States are 
prohibited unless they meet the same or comparable grade, size, 
quality, and maturity requirements as those in effect for the 
domestically produced commodity. Marketing Order No. 925 (7 CFR part 
925) regulates the handling of grapes grown in a designated area of 
southeastern California. Grade, size, quality, and maturity 
requirements are implemented under that order for all varieties of 
vinifera species table grapes, except Emperor, Calmeria, Almeria, and 
Ribier, during the period April 20 through August 15 each year. Thus, 
the requirements applied to the regulated, nonexempt varieties of 
vinifera species grapes under the marketing order also must apply to 
these varieties when they are offered for importation during that time 
period. The four named varieties are exempt from marketing order 
requirements because they are not grown in the production area covered 
by the marketing order.
    This proposed rule would clarify the grape import regulation by 
adding eleven grape varieties to the list of varieties of vinifera 
species table grapes specifically exempted in the import regulation. 
The eleven additional grape varieties are genetically related to and/or 
possess characteristics similar to Emperor, Calmeria, Almeria, or 
Ribier variety grapes, and are not produced in the production area 
covered under Marketing Order No. 925. Providing a complete list of 
exempted varieties would clarify the import regulation and would make 
it easier for exporters and importers to make marketing decisions.
    The four named varieties were specifically exempted from the grape 
import regulation on a continuing basis in 1985 (86 FR 18849; May 3, 
1985). This was necessary to keep the import regulation in conformity 
with the requirements implemented under Marketing Order No. 925.
    Since that time, eleven varieties have been evaluated by the 
Department and determined to be exempt from import requirements because 
they are genetically related to and/or have similar characteristics to 
Emperors, Calmerias, Almerias, and Ribiers. In addition, these 
varieties were not and are not currently produced in the production 
area covered under Marketing Order No. 925.
    Initially, the number of varieties was small. Over time, the number 
of exempt varieties has grown and a complete list of exempt varieties 
should be added to the import regulation to facilitate

[[Page 71404]]

reference. The varieties to be included with Emperors, Calmerias, 
Almerias, and Ribiers are: Italia Pirovano (a.k.a. Blanca Italia), 
Christmas Rose, Muscatel, Barlinka, Dauphine, Kyojo, Waltham Cross, 
Alphonse Lavallee, Bien Donne, Bonnoir (a.k.a. Bonheur), and Sonita. 
Another variety, Red Globe, previously exempted, is not included in 
this list because Red Globes are now produced and regulated under 
Marketing Order No. 925, and therefore must be regulated under the 
table grape import regulation.
    These varieties of table grapes would be listed as exempt varieties 
together with the Emperors, Calmerias, Almerias and Ribiers in 
paragraph (a)(1) of Sec. 944.503 of the table grape import regulation, 
thereby, facilitating reference to the eleven additional varieties.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of the Agricultural Marketing Service 
(AMS) has considered the economic impact of this rule 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 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 
for the domestically produced commodity. Consequently, this proposed 
rule should impact both small and large business entities involved in 
the export and importation of table grapes in a manner comparable to 
regulations issued and applied under the California table grape 
marketing order (7 CFR part 925).
    There are approximately 127 importers of grapes. 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. The average importer receives $2.8 million in grape 
revenue, excluding receipts from other sources. Therefore, we believe 
that the majority of these importers are small entities.
    Section 8e of the Act specifies that whenever certain specified 
commodities, including table grapes, are regulated under a Federal 
marketing order, imports of that commodity into the United States are 
prohibited unless they meet the same or comparable grade, size, 
quality, and maturity requirements as those in effect for the 
domestically produced commodity. Marketing Order No. 925 (7 CFR part 
925) regulates the handling of grapes grown in a designated area of 
southeastern California. Grade, size, quality, and maturity 
requirements are implemented under that order for all varieties of 
vinifera species table grapes, except Emperor, Calmeria, Almeria, and 
Ribier, during the period April 20 through August 15 each year. Thus, 
the requirements applied to the regulated, nonexempt varieties of 
vinifera species grapes under the marketing order also must apply to 
these varieties when they are offered for importation during that time 
period. The four named grape varieties are exempted from requirements 
established under the marketing order and the import regulation because 
they are not produced in the California production area.
    The four named varieties were specifically exempted from the grape 
import regulation on a continuing basis in 1985 (86 FR 18849; May 3, 
1985). This was necessary to keep the import regulation in conformity 
with the requirements implemented under Marketing Order No. 925.
    Since that time, eleven varieties have been evaluated and were 
determined by the Department to be exempt from the minimum grade, size, 
quality, and maturity requirements of the grape import regulation, 
because they are genetically related to and/or possess characteristics 
similar to Emperor, Calmeria, Almeria, or Ribier variety grapes, and 
are not produced in the production area covered by Marketing Order No. 
925.
    Initially, the number of such exempt varieties was small. However, 
over the years, the number has grown and a complete list of exempt 
varieties should be added to the import regulation to facilitate 
reference. The varieties to be included with Emperors, Calmerias, 
Almerias, and Ribiers are: Italia Pirovano (a.k.a. Blanca Italia), 
Christmas Rose, Muscatel, Barlinka, Dauphine, Kyojo, Waltham Cross, 
Alphonse Lavallee, Bien Donne, Bonnoir (a.k.a. Bonheur), and Sonita. 
Another variety, Red Globe, previously exempted, now is produced in the 
production area covered under the marketing order and would not be 
exempted. The additional varieties of table grapes would be listed as 
exempt varieties together with Emperors, Calmerias, Almerias and 
Ribiers in paragraph (a)(1) of Sec. 944.503 of the table grape import 
regulation. A complete list of exempt varieties would help exporters 
and importers operate more effectively under the requirements, and help 
them make marketing decisions.
    Chile is the dominant grape exporting country from December through 
May each year. The Republic of South Africa also exports some grapes to 
the United States during this time period. Mexico has been the largest 
exporter of grapes to the United States during the May through August 
period each year. Chile and Italy export small quantities of grapes to 
the United States during this period. During the September through 
November period exports arrive from Canada and Italy.
    In 1997, imports of table grapes totaled 359,928 metric tons. Chile 
was the principal source, accounting for 76 percent of the total. 
Mexico exported 75,713 metric tons and The Republic of South Africa 
exported 7,450 metric tons to the United States during that year. Italy 
exported 1,142 metric tons and Canada exported 3,202 metric tons.
    This clarification would not require any changes in the grape 
handling practices of exporters and importers because the varieties to 
be added as exempt varieties are already being treated as exempt 
varieties.
    The benefit of facilitating reference to all of the exempted 
varieties is not expected to be disproportionately greater or smaller 
for small importers than for larger importers.
    Because regulated entities would benefit from this proposed 
clarification by helping them make table grape export, import, and 
marketing plans, no other alternative to this action would be 
considered viable.
    This action would not impose any additional reporting or 
recordkeeping requirements on either small or large grape importers. 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 
Department has not identified any relevant Federal rules that 
duplicate, overlap or conflict with this rule.
    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 U.S. Trade 
Representative has concurred with the issuance of this proposed rule.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

[[Page 71405]]

List of Subjects in 7 CFR Part 944

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

    For the reasons set forth in the preamble, 7 CFR part 944 is 
proposed to be amended as follows:

PART 944--FRUITS; IMPORT REGULATIONS

    1. The authority citation for 7 CFR part 944 continues to read as 
follows:

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


Sec. 944.503  [Amended]

    2. In Sec. 944.503, paragraph (a)(1) introductory text, the words 
``, except Emperor, Calmeria, Almeria, and Ribier,'' are replaced with 
the words ``except Emperor, Calmeria, Almeria, Ribier, Italia Pirovano 
(a.k.a. Blanca Italia), Christmas Rose, Muscatel, Barlinka, Dauphine, 
Kyojo, Waltham Cross, Alphonse Lavallee, Bien Donne, Bonnoir, (a.k.a. 
Bonheur), and Sonita,''.

    Dated: December 21, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-34208 Filed 12-24-98; 8:45 am]
BILLING CODE 3410-02-P