[Federal Register Volume 64, Number 58 (Friday, March 26, 1999)]
[Rules and Regulations]
[Pages 14575-14577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7473]



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 Rules and Regulations
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  Federal Register / Vol. 64, No. 58 / Friday, March 26, 1999 / Rules 
and Regulations  

[[Page 14575]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 51

[Docket Number FV-98-302]


Table Grapes (European or Vinifera Type); Grade Standards

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule revises the United States Standards for Grades 
of Table Grapes (European or Vinifera Type). The Agricultural Marketing 
Service (AMS), in cooperation with industry and other interested 
parties develops and improves standards of quality, condition, 
quantity, grade and packaging in order to facilitate commerce by 
providing buyers, sellers, and quality assurance personnel uniform 
language criteria for describing various levels of quality and 
condition as valued in the marketplace. The revision will change the 
specific varietal reference throughout the standard from the present 
``Superior Seedless'' to ``Sugraone.'' This revision will result in a 
benefit to the table grape industry by providing a uniform, up-to-date 
reference ensuring proper application of the grade standards.

DATES: This rule is effective March 29, 1999. The incorporation by 
reference of certain publications listed in the rule is approved by the 
Director of the Federal Register as of March 29, 1999.

FOR FURTHER INFORMATION CONTACT: Frank O'Sullivan, Fresh Products 
Branch, Fruit and Vegetable Programs, Agricultural Marketing Service, 
U.S. Department of Agriculture, P.O. Box 96456, Washington D.C. 20090-
6456, (202) 720-2185; E-Mail Francis__J.__O[email protected].

SUPPLEMENTARY INFORMATION: 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 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.
    AMS provides inspection and grading services and issues grade and 
quality standards for commodities such as grapes. The agency does not 
determine varietal names for such commodities. However, in February 
1998, AMS received a request from Sun World International (Sun World) 
to replace the varietal reference ``Superior Seedless'' with 
``Sugraone'' in the table grape standards in 7 CFR Part 51.880-51.914. 
Sun World, a grower/shipper with proprietary rights to the term 
``Superior Seedless,'' advised AMS that ``Superior Seedless'' was a 
registered trademark name and no longer the varietal name used for this 
table grape variety.
    Sun World petitioned AMS in February 1998 to revise the United 
States Standards for Grades of Table Grapes (European or Vinifera 
Type). Sun World requested that AMS revise the standards by replacing 
the varietal reference of ``Superior Seedless'' with ``Sugraone.'' This 
request appeared reasonable to AMS, because the U.S. Standards for 
Grades of Table Grapes (European or Vinifera Type) lists specific 
requirements for this variety. Although AMS is not responsible for 
issuing varietal names, the Agency is responsible for facilitating 
commerce by providing buyers, sellers, and quality assurance personnel 
uniform language criteria for describing various levels of quality and 
condition as valued in the marketplace. Accordingly, descriptions and 
varietal names should be used that are current and applicable for its 
users.
    A proposed rule was issued to address this change. A proposed rule 
was published in the Federal Register on October 21, 1998 [V. 63, FR 
56096]. A comment period of sixty days was issued which closed on 
December 21, 1998.
    Only one comment was received during the comment period. This 
comment was from the proponent, Sun World, which offered several 
reasons for making the revision to the standard. These reasons include 
the fostering of international trade, recognition of ``Sugraone'' as 
the proper varietal name by appropriate international organizations and 
consistency with applicable laws and international agreements. The 
comments noted that on August 9, 1996, the State of California, where 
100 percent of the U.S. production of Sugraone originates, revised its 
regulations identifying Sugraone as a grape varietal name (California 
Code of Regulations, Title 3, Subchapter 4, Fresh Fruits and 
Vegetables, Article 25, Table Grapes and Raisins, November 16, 1996).
    AMS has considered this comment and based upon available 
information has determined that the varietal reference should be 
revised from ``Superior Seedless'' to ``Sugraone.'' As previously 
stated, AMS provides inspection and grading services and issues grade 
and quality standards for commodities such as grapes. Even though U.S. 
grade standards make reference to varieties for some requirements, the 
agency does not determine varietal names for commodities.
    However, according to the Agricultural Marketing Act of 1946 [7 
U.S.C. 1621-1627, Sec. 203 (c)], the Secretary of Agriculture is 
directed and authorized ``to develop and improve standards of quality, 
condition, quantity, grade, and packaging, and recommend and 
demonstrate such standards in order to encourage uniformity and 
consistency in commercial practices.'' This change should encourage 
uniformity and consistency in commercial practices with regard to 
marketing this variety of table grape.
    Further, users of the standard will be certain how to apply the 
requirements of the standard, specifically to the Sugraone variety. 
Ultimately, the changes are merely technical and the actual grade 
requirements for this variety will remain unchanged. The references are 
necessary to provide inspection personnel and other parties using the 
grade standards with clear, concise, up-to-date information. 
Accordingly, the revision will have no substantive effect in the 
application of grade standards to regulated domestic and imported 
grapes under the

[[Page 14576]]

Agricultural Marketing Agreement Act of 1937 [7 U.S.C. 601-674], 
specifically those at 7 CFR part 925, and 7 CFR part 944, or grapes 
regulated under the Export Grape and Plum Act [7 U.S.C. 591-599].
    Accordingly, in Sec. 51.882 U.S. Fancy, paragraph (i)(1)(ii), 
``Superior Seedless'' will be changed to ``Sugraone.'' In Sec. 51.884 
U.S. No. 1 Table, paragraph (I)(1)(i), which specifies berry size for 
the U.S. No. 1 Table grade, ``Superior Seedless'' will also be changed 
to ``Sugraone.'' A similar change will be made to Sec. 51.885 U.S. No. 
1 Institutional, paragraph (h)(1)(i), which also references berry size 
for that particular grade.
    In addition, as the maturity requirements specified in the 
standards incorporate applicable portions of The California Code of 
Regulations, and the State has revised these regulations by replacing 
``Superior Seedless'' with ``Sugraone,'' Sec. 51.888 (a)(2) of the U.S. 
grade standards will be revised to incorporate the new State 
regulations by reference to The California Code of Regulations, Title 
3, Subchapter 4, Fresh Fruits, Nuts, and Vegetables, Article 25 Table 
Grapes and Raisins, November 16, 1996.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), the Agricultural Marketing Service 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 statues have compatibility.
    It is difficult to obtain an exact number of table grape handlers 
and producers which grow or handle the Sugraone variety or Superior 
Seedless brand, (primarily due to the fact that a table grape producer 
or handler normally grows, or handles more than just one variety). 
However, according to the 1997 USDA National Agricultural Statistics 
Service reports, there are approximately 800 fresh market table grape 
growers/shippers in the United States which produced 939,665 short tons 
of table grapes (all varieties). Of these 800 growers/handlers, 
approximately 650 are from California and produce approximately 80 
percent (750,000 short tons) of the crop. Approximately 10 growers from 
Arizona produced 2 percent (23,000 short tons) of the 1997 fresh market 
table grape crop. The bulk of the remaining 18 percent of production 
was produced by the remaining three of the top five States of table 
grape production: Georgia, Arkansas, and New York. In 1997, California 
produced approximately 26,572 short tons of the ``Sugraone'' variety, 
representing approximately 3 percent of the total U.S. table grape 
production and 100 percent of the U.S. production of this variety.
    Small agricultural service firms, which includes handlers, have 
been defined by the Small Business Administration (SBA) [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. The table grape industry is 
characterized by growers and handlers whose farming operations 
generally involve more than one type (such as fresh market utilization 
versus processed market utilization) and variety of table grape, and 
whose income from farming operations in not exclusively dependent on 
one table grape variety or even one commodity. Typical table grape 
growers and shippers produce multiple varieties of fresh market table 
grapes and juice grapes within a single year. Furthermore, table grape 
handlers also handle not only multiple varieties of fresh market table 
grapes and juice grapes within a single year, but multiple commodities. 
Therefore, it is difficult to obtain an exact number of table grape 
growers and handlers, and, more specifically, ``Sugraone'' table grape 
growers, handlers and shippers, that can be classified as small 
entities based on the SBA's definition. However, the majority of the 
producers do have annual receipts greater than $500,000. Additionally, 
there are approximately 127 importers that receive an average of $2.8 
million in grape revenue. (Table grapes received by these importers are 
subject to the requirements of Section 8e of the Agricultural Marketing 
Agreement Act of 1937 referenced above.) Therefore, it is estimated 
that the majority of table grape growers do not fit the SBA's 
definition of a small entity while the majority of handlers/importers 
are small entities.
    The benefits of this rule are not expected to be disproportionately 
greater or smaller for small handlers or producers than for larger 
entities.
    Alternatives were considered for this action. One alternative would 
be to not issue a final rule. However, as the popularity of this 
variety increases, and as imports of this variety also increase, the 
exposure and frequency of this varietal designation will also increase. 
Since the purpose of these standards is to expedite the marketing of 
agricultural commodities, not changing this reference could result in 
confusion in terms of the proper application for the U.S. grade 
standards.
    This action will make the standard more consistent and uniform with 
marketing trends and commodity characteristics. It will not impose any 
additional reporting or recordkeeping requirements on either small or 
large grape producers, handlers, or importers. In addition, other than 
discussed above, the Department has not identified any Federal rules 
that duplicate, overlap, or conflict with this rule.
    Pursuant to 5 U.S.C. 553, it is found and determined that good 
cause exists for not postponing the effective date of this rule 30 days 
after publication in the Federal Register because: (1) It would be 
pertinent to have this change in effect by the beginning of the 1999 
domestic table grape crop harvest (mid April to May); (2) the changes 
being made in this final rule only affect growers/handlers of the 
Sugraone variety of table grape; (3) the proposed rule provided a 60 
day comment period during which no comments opposed to this rule were 
received. Accordingly, AMS amends the United States Standards for 
Grades of Table Grapes (European or Vinifera Type) as follows.

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 to be 
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.

Sec. 51.882  [Amended]

    2. In Sec. 51.882, paragraph (i)(1)(ii) is amended by removing the 
words ``Superior Seedless'' and adding in their place the word 
``Sugraone.''


Sec. 51.884  [Amended]

    3. In Sec. 51.884, paragraph (i)(1)(i) is amended by removing the 
words ``Superior Seedless'' and adding in their place the word 
``Sugraone.''


Sec. 51.885  [Amended]

    4. In Sec. 51.885, paragraph (h)(1)(i) is amended by removing the 
words

[[Page 14577]]

``Superior Seedless'' and adding in their place the word ``Sugraone.''


Sec. 51.888  [Amended]

    5. In Sec. 51.888, paragraph (a)(2) is amended by removing the date 
``February 28, 1992'' and adding in its place the date ``November 16, 
1996''.

    Dated: March 22, 1999.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-7473 Filed 3-25-99; 8:45 am]
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