[Federal Register Volume 64, Number 210 (Monday, November 1, 1999)]
[Rules and Regulations]
[Pages 58759-58763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28372]



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 Rules and Regulations
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  Federal Register / Vol. 64, No. 210 / Monday, November 1, 1999 / 
Rules and Regulations  

[[Page 58759]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Docket No. FV99-905-6 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 relaxes the minimum size requirement for red 
seedless grapefruit grown in Florida 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 the change for Florida grapefruit. 
The change in the import regulation is required under section 8e of the 
Agricultural Marketing Agreement Act of 1937. This change allows 
handlers and importers to ship size 56 red seedless grapefruit through 
November 12, 2000, and is expected to maximize grapefruit shipments to 
fresh market channels.

DATES: Effective November 8, 1999, through November 12, 2000; comments 
received by January 3, 2000 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, DC 20090-6456; Fax: (202) 720-5698; 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) 299-4770, Fax: (941) 299-5169; or 
George Kelhart, Technical Advisor, Marketing Order Administration 
Branch, F&V, AMS, USDA, room 2522-S, PO Box 96456, Washington, DC 
20090-6456; telephone: (202) 720-2491, Fax: (202) 720-5698.
    Small businesses may request information on complying 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) 
720-5698, or E-mail: Jay.G[email protected].

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 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.
    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 requirement 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 7, 1999, 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

[[Page 58760]]

minimum size from size 48 (3\9/16\ inches in diameter) to size 56 (3\5/
16\ inches in diameter) through November 12, 2000. Absent this change, 
the minimum size would revert to size 48 (3\9/16\ inches in diameter) 
on November 8, 1999. The Committee met on August 31, 1999, 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 905.306) 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 12, 2000. Minimum grade and size requirements for grapefruit 
imported into the United States are currently in effect under 
Sec. 944.106 (7 CFR 944.106). This rule also adjusts Sec. 944.106 to 
establish a minimum size of 56 through November 12, 2000. Export 
requirements for Florida red seedless grapefruit are not changed by 
this rule.
    In making its recommendation, the Committee considered estimated 
supply and demand. While the official crop estimate will not be 
available until October, the supply of red seedless grapefruit is 
expected to be below last year's production of 28.7 million 1\3/5\ 
bushel boxes. Acreage has declined in recent years from 81,348 acres in 
1996, to 76,025 acres in 1998, to 71,731 acres in 1999. Losses are due 
to groves being abandoned due to economic reasons, unhealthy groves 
being removed and replanted, and sick and diseased trees being removed 
from healthy, productive groves and not being replanted.
    The Committee anticipates that fresh shipments of red seedless 
grapefruit will be at or below last season's level of 14.6 million \4/
5\ bushel cartons. The quality of this year's crop is anticipated to be 
normal to above normal. However, the fruit is expected to be misshapen 
more than normal. All growing districts appear to be affected by poorly 
shaped fruit, which could reduce the packout percentages for the 1999-
2000 crop. The individual fruit size for the upcoming crop is projected 
to be a little smaller than normal, but not as small as last season. 
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 1999-2000 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, because it will permit Florida grapefruit handlers to make 
available the sizes of fruit needed to meet consumer needs. Matching 
the sizes with consumer needs is consistent with current and 
anticipated demand for the 1999-2000 season, and will maximize 
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 seedless grapefruit is for export.
    Committee members stated that during the first 11 weeks of the 
season (September 20 through December 5), there will likely be a volume 
regulation in effect to limit the volume of small red seedless 
grapefruit that can enter the fresh market. The Department has since 
issued such a rule, which was published on September 17, 1999 (64 FR 
50419). The Committee believes that the percentage size regulation has 
been helpful in reducing the negative effects of size 56 on the 
domestic market, and that no additional restrictions are needed for the 
upcoming season.
    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 12, 2000. 
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 1999-
2000 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 12, 
2000, 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 include 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 1998-99 season, 
the average annual f.o.b. price for fresh Florida red seedless 
grapefruit during the 1998-99 season was around $7.60 per \4/5\ bushel 
carton, and total fresh shipments for the 1998-99 season are estimated 
at 14.6 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

[[Page 58761]]

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.
    Handlers in Florida shipped approximately 37,395,000 \4/5\ bushel 
cartons of grapefruit to the fresh market during the 1998-99 season. Of 
these cartons, about 22,123,000 were exported. In the past three 
seasons, domestic shipments of Florida grapefruit averaged about 
16,720,000 cartons. During the period 1994 through 1998, imports have 
averaged about 600,000 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 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 in diameter) to size 56 (3\5/16\ inches in 
diameter) through November 12, 2000. No change is being made in the 
minimum size 56 requirement for export shipments. Absent this rule, the 
minimum size requirement for domestic shipments would have reverted to 
size 48 on November 8, 1999. The motion to allow shipments of size 56 
red seedless grapefruit through November 12, 2000, was passed by the 
Committee unanimously. In addition, there is a volume regulation in 
effect for the first 11 weeks of the 1999-2000 season (September 22 
through December 5) that limits the volume of small red seedless 
grapefruit that can enter the fresh market (64 FR 50419, September 17, 
1999).
    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, or the grapefruit import regulation.
    This rule relaxes the minimum size from size 48 (3\9/16\ inches in 
diameter) to size 56 (3\5/16\ inches in diameter) through November 12, 
2000. 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. Matching the sizes that can be shipped 
with consumer needs is consistent with current and anticipated demand 
for the 1999-2000 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 handlers 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.
    During the period October 1, 1998, through June 30, 1999, imports 
of grapefruit totaled 15,500 metric tons (approximately 800,000 
cartons). Recent yearly data indicate that imports during July, August, 
and September are typically negligible. Therefore, the 1998-99 season 
imports should not vary significantly from 15,500 metric tons. The 
Bahamas were the principal source, accounting for 95 percent of the 
total. Remaining imports were supplied by the Dominican Republic and 
Israel. Most imported grapefruit enters the United States from October 
through May.
    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. Because 
this rule changes the minimum size for domestic red seedless grapefruit 
shipments, this change must also be applicable to imported grapefruit. 
This rule relaxes the minimum size for imported grapefruit 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 12, 2000.
    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 51.750 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 August 31, 1999, 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.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at the 
following website: http://www.ams.usda.gov/fv/moab.html. Any questions 
about the compliance guide should be sent to Jay Guerber at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section of this document.
    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 requirement 
currently prescribed under the marketing order for Florida citrus and 
the grapefruit import regulation. 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

[[Page 58762]]

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) this action is similar to actions taken in past 
seasons and grapefruit handlers and importers need no additional time 
to comply with the relaxed size requirement; (3) Florida grapefruit 
handlers are aware of this action which was unanimously recommended by 
the Committee; (4) shipments of the 1999-2000 season Florida red 
seedless grapefruit crop are underway; and (5) 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 for ``Seedless, red'' to read as follows:


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

    (a) * * *

                                                     Table I
----------------------------------------------------------------------------------------------------------------
                                                                                                       Minimum
                 Variety                        Regulation period              Minimum grade           diameter
                                                                                                       (inches)
(1)                                        (2)........................  (3)........................          (4)
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
                                                   GRAPEFRUIT
 
*                  *                  *                  *                  *                  *
                                                        *
Seedless, red............................  11/8/99-11/12/00 On and      U.S. No. 1.................      3\5/16\
                                            after 11/13/00.             U.S. No. 1.................      3\9/16\
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------

* * * * *


PART 944--FRUITS; IMPORT REGULATIONS

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


Sec. 944.106  Grapefruit import regulation.

    (a) * * *

 
----------------------------------------------------------------------------------------------------------------
                                                                                                       Minimum
        Grapefruit classification               Regulation period              Minimum grade           diameter
                                                                                                       (inches)
(1)                                        (2)........................  (3)........................          (4)
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
Seedless, red............................  11/8/99-11/12/00 On and      U.S. No. 1.................      3\5/16\
                                            after 11/13/00.             U.S. No. 1.................      3\9/16\
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------


[[Page 58763]]

* * * * * * *
    Dated: October 25, 1999.
Eric M. Forman,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-28372 Filed 10-29-99; 8:45 am]
BILLING CODE 3410-02-P