[Federal Register Volume 65, Number 25 (Monday, February 7, 2000)]
[Rules and Regulations]
[Pages 5733-5736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-2689]



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  Federal Register / Vol. 65, No. 25 / Monday, February 7, 2000 / Rules 
and Regulations  

[[Page 5733]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Docket No. FV99-905-6 FIR]


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:  Final rule.

-----------------------------------------------------------------------

SUMMARY:  The Department of Agriculture (Department) is adopting, as a 
final rule, without change, the provisions of an interim final rule 
changing the regulations under the Florida citrus marketing order and 
the grapefruit import regulations. This rule continues to relax the 
minimum size requirement for Florida 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 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.

EFFECTIVE DATE:  March 8, 2000.

FOR FURTHER INFORMATION CONTACT:  William G. Pimental, Southeast 
Marketing Field Office, F&V, AMS, USDA, P.O. Box 2276, Winter Haven, 
Florida 33883; telephone: (863) 299-4770, Fax: (863) 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) 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, P.O. Box 96456, room 
2525-S, Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202) 
720-5698, or E-mail: [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 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 minimum size requirement for domestic 
shipments is size 56 (at least 3\5/16\ inches in diameter) through 
November 12, 2000, and size 48 (3\9/16\ inches in diameter) thereafter. 
The current minimum size for export shipments is size 56 throughout the 
year.
    This rule continues in effect a change to the order's rules and 
regulations relaxing the minimum size requirement for domestic and 
import shipments of red seedless grapefruit. This action allows for the 
continued shipment of size 56 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 12, 2000. Absent this change, the minimum 
size would be size 48 (3\9/16\ inches diameter). 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

[[Page 5734]]

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 continues in effect the adjustments in 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 continues the adjustments in 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. The official crop estimate of 27 million 1\3/5\ 
bushel boxes is below last year's production of 28.7 million 1\3/5\ 
bushel boxes of red seedless grapefruit. Acreage has declined in recent 
years from 81,348 acres in 1996, to 76,025 acres in 1998, to 71,731 
acres in 1999. The acreage declines 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 approximately 16 million \4/5\ bushel cartons, 
similar to last season's level of 16.7 million \4/5\ bushel cartons. 
The quality of this year's crop is anticipated to be below normal. 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 current 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.
    During the first 11 weeks of the season (September 20 through 
December 5), there was a volume regulation in effect to limit the 
volume of small red seedless grapefruit that entered the fresh market. 
The Department issued rules, which were published on September 17, 1999 
(64 FR 50419) and November 1, 1999 (64 FR 58759), implementing that 
regulation. 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 the 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 
continues to relax 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 in effect 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 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 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 121.201).
    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 were 
approximately at 16.7 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.

[[Page 5735]]

    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 580,800 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 specifies minimum grade and size requirements for different 
varieties of fresh Florida grapefruit. This rule continues to relax 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 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 be size 48. 
The motion to allow shipments of size 56 red seedless grapefruit 
through November 12, 2000, was passed by the Committee unanimously. In 
addition, there was a volume regulation in effect for the first 11 
weeks of the 1999-2000 season (September 22 through December 5) that 
limited the volume of small red seedless grapefruit that entered the 
fresh market (64 FR 50419, September 17, 1999; and 64 FR 58759, 
November 1, 1999).
    This rule will have a positive impact on affected entities by 
maximizing shipments of red seedless grapefruit into fresh market 
channels. 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 continues to relax 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, as noted in the initial regulatory flexibility 
analysis, 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 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 were invited to submit 
information on the regulatory and informational impacts of this action 
on small businesses.
    An interim final rule concerning this action was published in the 
Federal Register on November 1, 1999 (64 FR 58759). Copies of the rule 
were mailed by the Committee staff to all Committee members and 
grapefruit handlers. In addition, the rule was made available through 
the Internet by the Office of the Federal Register. That rule provided 
for a 60-day comment period which ended January 3, 2000. No comments 
were received.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this final rule.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
finalizing the interim final rule, without change, as published in the 
Federal Register (64 FR 58759, November 1, 1999) will tend to 
effectuate the declared policy of the Act.

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.

[[Page 5736]]

PART 905--ORANGES, GRAPEFRUIT, TANGERINES AND TANGELOS GROWN IN 
FLORIDA

PART 944--FRUITS; IMPORT REGULATIONS

    Accordingly, the interim final rule amending 7 CFR parts 905 and 
944 which was published at 64 FR 58759 on November 1, 1999, is adopted 
as a final rule without change.

    Dated: January 31, 2000.
Robert C. Keeney
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-2689 Filed 2-4-00; 8:45 am]
BILLING CODE 3410-02-P