[Federal Register Volume 67, Number 31 (Thursday, February 14, 2002)]
[Rules and Regulations]
[Pages 6837-6842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3633]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 911 and 944

[Docket No. FV01-911-2 FR]


Limes Grown in Florida and Imported Limes; Suspension of 
Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule suspends regulations for one year for limes grown in 
Florida and for limes imported into the United States that are shipped 
to the fresh market. This rule suspends grade, size, quality, maturity, 
pack, inspection, assessment collection, reporting, and other 
requirements currently prescribed under the Florida lime marketing 
order (order). The order is administered locally by the Florida Lime 
Administrative Committee (Committee). This suspension gives the 
industry time to evaluate citrus canker eradication efforts and the 
market effects of suspending regulations for one year. This change 
reduces costs and will help the industry recover from the effects of 
citrus canker. The suspension of the grade, size, quality, maturity, 
and inspection requirements specified in the import regulation is 
required under section 8e of the Agricultural Marketing Agreement Act 
of 1937.

EFFECTIVE DATE: This final rule becomes effective February 19, 2002 
through February 24, 2003.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
Southeast Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 799 Overlook Drive, 
Suite A, Winter Haven, Florida 33884; telephone: (863) 324-3375, Fax: 
(863) 325-8793; or George Kelhart, Technical Advisor, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 
Independence Avenue, SW STOP 0237, Washington, DC 20250-0237; 
telephone: (202) 720-2491, Fax: (202) 720-8938.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence 
Avenue, SW STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing

[[Page 6838]]

Agreement No. 126 and Order No. 911, both as amended (7 CFR part 911), 
regulating the handling of limes 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 final rule is also issued under section 8e of the Act, which 
provides that whenever certain specified commodities, including limes, 
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 (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    This final 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 USDA 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 USDA 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 USDA'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.
    This final rule suspends regulations currently prescribed under the 
Florida lime marketing order. This rule suspends grade, size, quality, 
pack, inspection, assessment collection, and other requirements for one 
year. This suspension provides the industry time to evaluate citrus 
canker eradication efforts and assess the market effects of no 
regulation on the industry after the one-year suspension. This change 
also reduces costs and will help the industry recover from the effects 
of citrus canker.
    Section 911.48 of the order authorizes the issuance of regulations 
for grade, size, quality, and pack for limes grown in the production 
area. Section 911.49 authorizes the modification, suspension, or 
termination of regulations issued under Sec. 911.48. Section 911.51 
provides that whenever limes are regulated pursuant to Sec. 911.48, 
such limes must be inspected by the Federal-State Inspection Service, 
and certified as meeting the applicable requirements of such 
regulations. The cost of inspection and certification is borne by 
handlers.
    Under the order, fresh market shipments of Florida limes are 
required to be inspected and are subject to grade, size, quality, pack, 
and container requirements. Section 911.344 Grade and Size Requirements 
(7 CFR 911.344) states that no handler shall handle any variety of 
limes grown in the production area unless such limes of the group known 
as seeded or true limes meet the requirements specified for U.S. No. 2 
grade, except as to color. Further, if such limes do not meet these 
requirements, they may be handled within the production area if they 
meet the minimum juice content requirement of at least 42 percent by 
volume and if handled in containers other than those specified in 
Sec. 911.329. Such limes of the group known as seedless, large-fruited, 
or Persian limes must meet the requirements in Secs. 911.311 and 
911.329 and grade at least a U.S. Combination, Mix Color. They also 
must be at least two inches in diameter from January 1 through May 31, 
and at least 1\7/8\ inches in diameter from June 1 through December 31. 
Further, they must contain not less than 42 percent juice content by 
volume. Section 911.344 also includes some container specifications and 
inspection requirements.
    The order's pack and container requirements are specified in 
Secs. 911.311 and 911.329. These sections state, in part, that limes 
must be packed in containers of 5.5, 8, 10, 20, and 38 pounds 
designated net weight. Each container of limes in each lot must be 
marked or stamped on the outside end in letters at least \1/4\ inch in 
height to show the United States grade and either the average juice 
content of the limes or the phrase ``average juice content forty-two 
percent (42%) or more.'' The containers must also be marked with a 
Federal-State Inspection Service lot stamp number showing that the 
limes have been inspected and with a stamp indicating size. Related 
provisions appear in the regulations at Sec. 911.110 Exemption 
certificates; Sec. 911.120 Handler registration; Sec. 911.130 Limes not 
subject to regulation; and Sec. 911.131 Limes for processing.
    At its April 18, 2001, meeting, in a vote of six in favor and one 
opposed, the Committee recommended suspending the grade, size, quality, 
pack, inspection, assessment collection, and other requirements for one 
year. The Committee met again on May 16, 2001, to review the 
recommendation made at the earlier meeting and to clarify its original 
motion. The Committee requested that this rule be in place for one year 
beginning with the effective date of this rule.
    Because limes are marketed all year, the Committee was not 
concerned about recommending a specific effective date for the 
suspension. The fiscal year covers the 12-month period beginning April 
1 and ending March 31. Since the suspension only applies for the 12 
months following the effective date of this final rule, the suspension 
of the handling, inspection, assessment, and other requirements will 
start during the 2001/2002 fiscal period and end during the 2002/2003 
fiscal period. This is not expected to cause any problems for handlers.
    The objective of the handling and inspection requirements is to 
ensure that only limes of acceptable quality enter fresh market 
channels, thereby ensuring consumer satisfaction, increasing sales, and 
improving returns to producers. While the industry continues to believe 
that quality is an important factor in maintaining sales, the Committee 
believes the costs associated with the order may exceed the benefits 
derived at this time, especially in view of the reduction in production 
due to citrus canker.
    The Committee is concerned, however, that the elimination of 
current requirements could possibly result in lower quality limes being 
shipped to fresh markets and that markets will be hurt by poor quality. 
For this reason, the Committee recommended that the suspension of 
requirements be effective for one-year only. This will enable the 
Committee to study the impacts of canker and the suspension and 
consider appropriate actions for ensuing seasons.
    This rule allows handlers to ship limes without regard to the 
minimum grade, size, quality, pack, and inspection requirements for one 
year. This allows handlers to decrease costs by eliminating the costs 
associated with inspection and assessments. This rule does not restrict 
handlers from seeking inspection on a voluntary basis.
    The purpose of this rule is to reduce the burden on the industry. 
If at any

[[Page 6839]]

time during the suspension the Committee determines this action is 
having an unfavorable impact on the industry, the Committee could meet 
and rescind the suspension.
    This rule suspends Secs. 911.110, 911.120, 911.130, 911.131, 
911.311, 911.329, and 911.344 of the rules and regulations in effect 
under the order. Section 911.110 provides for hardship exemptions from 
inspection. Section 911.120 provides for the registration of handlers. 
Section 911.130 specifies minimum quantity and gift exemptions, and 
defines commercial processing. Section 911.131 provides requirements 
for limes for processing.
    This rule also suspends Sec. 911.234 requiring that an assessment 
rate of $0.16 per 55-pound bushel equivalent of limes be collected from 
Florida lime handlers. Authorization to assess lime handlers enables 
the Committee to incur expenses that are necessary to administer the 
marketing order. With the suspension of handling, inspection, and 
assessment requirements, a limited Committee budget is needed for 
program administration. For the period of suspension, the Committee 
will meet and recommend a reduced budget. The Committee has about 
$26,000 in operating reserves to cover approved Committee expenses.
    In 1995, citrus canker was detected near the Miami International 
Airport. Citrus canker spread throughout South Florida and by March 
2000, almost 1,500 acres of lime groves had tested positive for citrus 
canker. Prior to the outbreak of citrus canker, there were 
approximately 3,200 acres of commercial lime groves in Dade County. 
Estimates now place the Florida lime industry at somewhere between 600 
and 1,000 acres of production. During the 1999-2000 season, fresh lime 
production was 774,111 bushels. This past season, production fell to 
344,032 bushels. Production in 2001-02 is estimated to be 300,000 
bushels.
    Citrus canker is a highly infectious disease that attacks citrus 
trees. Canker attacks the tree and the fruit and may produce a variety 
of effects, including defoliation, severely blemished fruit, reduced 
fruit quality, and premature fruit drop. The only known method of 
eradicating citrus canker is to bulldoze and burn infected and exposed 
trees. Trees surrounding infected trees must also be bulldozed and 
burned. At the beginning of the eradication program, trees within a 125 
feet radius of an infected tree were destroyed. However, after research 
was conducted, it was determined that all trees within a 1,900 feet 
radius had to be destroyed. The removal of these additional trees has 
quickened the reduction of lime acreage in South Florida.
    Many lime growers have lost all of their production to canker. By 
regulation, until citrus canker is eradicated, lime growers are not 
permitted to replant. The production area is also under a quarantine 
that makes it difficult to sell harvested fruit. Lost income from 
reduced volume and the cost of maintaining groves with reduced monetary 
returns have hurt the industry. Because of this and the substantially 
reduced crop, the Committee believes that regulation should be 
suspended.
    By suspending regulation, the industry has an opportunity to 
evaluate how the citrus canker eradication efforts are progressing. The 
industry also has an opportunity to assess the market impact of having 
no regulation. Also, under a suspension, inspection fees and program 
assessment costs are eliminated. This is a savings for both growers and 
handlers. The savings will help offset some of the effects of citrus 
canker.
    The Committee member who opposed the recommendation believes that 
there is enough limes remaining to warrant regulation. Without 
regulation, the member believes that poor quality lime shipments will 
negatively impact better quality shipments. He also stated that he 
believes imported limes will flood the market and destroy the market 
for domestically produced limes. USDA received several letters 
emphasizing these points. They were considered prior to the issuance of 
the proposed rule. As mentioned earlier, the Committee has similar 
concerns, but believes that a one-year suspension of regulations is 
necessary to help reduce costs for those producers and packers who 
still have limes to market. The suspension provides time to assess 
canker eradication efforts, evaluate the effects on the market of 
having no regulations for one year, and offers the industry some needed 
cost relief from assessments and inspection fees. For these reasons, 
the Committee voted to recommend that grade, size, quality, maturity, 
pack, inspection, assessment collection, and other requirements be 
suspended for one year.
    Suspension of all of the specified requirements is expected to 
reduce the reporting burden on small or large Florida lime handlers by 
about 22 hours, and should further reduce industry expenses. During the 
suspension period, handlers will not have to file the following forms 
with the Committee: Application for Registered Handler (16.5 burden 
hours); Application for Registered Processor (10 minutes); Application 
for Lime Grade Label (5.5 burden hours).
    Section 8e of the Act provides that when certain domestically 
produced commodities, including limes, 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 suspends regulations for domestically produced limes, a 
corresponding change to the import regulations must also be made.
    Minimum grade, size, maturity, and quality requirements for limes 
imported into the United States are effective under Sec. 944.209 (7 CFR 
944.209). This rule suspends Sec. 944.209 requiring that limes imported 
into the United States be inspected for grade, size, maturity, and 
quality. Because this rule suspends import requirements for one year, 
it could also result in reduced costs for importers.
    Mexico is the largest exporter of limes to the United States. In 
calendar year 2000, Mexico exported approximately 9,630,909 bushels of 
limes to the United States, while all other import sources shipped a 
combined total of approximately 98,182 bushels during the same time 
period. Other sources of lime imports to the United States include 
Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, 
Honduras, and Venezuela. Mexico's highest volume occurs in the months 
of June through September.

Final Regulatory Flexibility Analysis

    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 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.
    There are approximately 52 producers of limes in the production 
area and approximately 10 handlers subject to regulation under the 
marketing order. In addition, approximately 240 importers of limes are 
subject to import regulations and will be impacted by this suspension. 
Small agricultural producers are defined as those having annual 
receipts of less than $750,000,

[[Page 6840]]

and small agricultural service firms, which include handlers and 
importers, are defined by the Small Business Administration (13 CFR 
121.201) as those having annual receipts of less than $5,000,000.
    The average f.o.b. price for fresh limes during the 2000-01 season 
was around $14.75 per bushel and total shipments were 344,032 bushels 
for the season. Using this price and total volume for the season, all 
lime handlers could be considered small businesses under the SBA 
definition, excluding receipts from other sources. The majority of 
Florida lime producers and handlers may be classified as small 
entities.
    In calendar year 2000, imports of limes totaled about 9.7 million 
bushels. Assuming the same average f.o.b. price as for Florida limes, 
the average importer receives gross receipts of about $600,000. Thus, 
the majority of lime importers can be classified as small entities.
    This final rule suspends grade, size, quality, pack, inspection, 
assessment collection, and other requirements as specified in 
Secs. 911.110, 911.120, 911.130, 911.131, 911.234, 911.311, 911.329, 
and 911.344. Section 944.209 of the import regulations, specifying the 
requirements for limes imported into the United States, is also 
suspended in its entirety. The suspensions are in effect for one year.
    Citrus canker has reduced Florida lime production from 3,200 acres 
to between 600 and 1,000 acres. The only known method for eradicating 
citrus canker is to bulldoze and burn infected trees and exposed trees. 
This suspension gives the industry time to evaluate citrus canker 
eradication efforts and to assess the effects on the market of having 
no regulations for one year. This change also reduces costs and will 
help the industry recover from the effects of citrus canker.
    At the April and May meetings, the Committee discussed the impact 
of this change on handlers and producers in terms of cost. This rule 
allows handlers to ship limes without regard to the minimum grade, 
size, quality, maturity, pack, and inspection requirements. It will 
decrease handler costs associated with inspection. This action also 
will eliminate the cost of assessments. Currently, handlers are 
required to pay an inspection fee of $0.14 per bushel and an assessment 
rate of $0.16 per bushel handled. Eliminating these costs will result 
in a savings for growers and handlers. Importers also will benefit from 
the reduction in inspection costs. These savings will help offset the 
loss of income from canker, as well as assist in the costs of 
replanting, when replanting is again authorized. The purpose of this 
rule is to reduce the burden on the industry. If at any time during the 
suspension the Committee determines this action is having an 
unfavorable impact on the industry, the Committee could meet and 
rescind the suspension. The benefits of this rule are expected to be 
available to lime handlers, growers, and importers, regardless of their 
size of operation.
    The Committee discussed alternatives to this change, including not 
suspending regulations at all, as well as terminating the order. 
Terminating the order was deemed too drastic an action at this time. 
However, most of the Committee members believe that suspension is 
necessary because of the substantially reduced crop and to reduce 
inspection and assessment costs. Citrus canker has had a negative 
economic impact on the lime industry and cost savings will be 
beneficial. Suspending regulations also provides the Committee time to 
evaluate the effects of canker and to consider what actions should be 
taken in the future. The Committee acknowledged that quality problems 
might occur in the absence of regulation, but believed that suspension 
was the best course of action at this time given the industry 
situation. Therefore, the alternatives of termination and continuing 
without change were rejected.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection requirements being suspended by 
this rule were approved previously by the Office of Management and 
Budget (OMB) and assigned OMB No. 0581-0189. Suspension of all of the 
specified requirements is expected to reduce the reporting burden on 
small or large Florida lime handlers by 22 hours, and should further 
reduce industry expenses. During the suspension period, handlers will 
not have to file the following forms with the Committee: Application 
for Registered Handler (16.5 burden hours); Application for Registered 
Processor (10 minutes); Application for Lime Grade Label (5.5 burden 
hours). As with all Federal marketing order programs, reports and forms 
are periodically reviewed to reduce information requirements and 
duplication by industry and public sectors.
    Pursuant to section 8e of the Act, this action also suspends the 
lime import regulation (7 CFR 944.209). That regulation specifies 
grade, size, quality, maturity, inspection, and other requirements.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this final rule.
    The Committee's meetings were widely publicized throughout the lime 
industry and all interested persons were invited to attend the meetings 
and participate in Committee deliberations on all issues. Like all 
Committee meetings, the April 18, 2001, and the May 16, 2001, meetings 
were public meetings and all entities, both large and small, were able 
to express views on this issue.
    A proposed rule concerning this action was published in the Federal 
Register on August 6, 2001 (66 FR 40923). Copies of the rule were 
mailed or sent via facsimile to all Committee members and lime 
handlers. Finally, the Office of the Federal Register and USDA made the 
rule available through the Internet. A 30-day comment period ending 
September 5, 2001, was provided to allow interested persons to respond 
to the proposal.
    Twenty-five comments were received during the comment period in 
response to the proposal. Many of the points made in the comments were 
thoroughly discussed prior to the Committee vote and the issuance of 
the proposed rule.
    Of the twenty-five comments received, four were in support of the 
proposal, one from a grower, two from handlers, and one from an 
importer. Three of the comments in support of the suspension discussed 
the costs associated with growing, handling, and importing limes.
    An importer of limes stated that, with no requirement to have limes 
inspected, there would be reduced costs for importers. The commenter 
further stated that this suspension would also result in cost savings 
for both growers and handlers of limes.
    A handler and a grower of Florida limes stated that the lime 
industry cannot afford to maintain the Federal marketing order. One 
commenter stated that the costs for picking limes have exceeded the 
return to the grower, increasing the need for cost savings. Another 
commenter stated that the average return per bushel has declined by 
$4.00 since 1999. The effort to prevent the further spread of canker 
has also increased industry costs.
    Before making a recommendation to suspend regulation, the Committee 
prepared a budget of expenses to determine the assessment rate 
necessary to cover expenses required to maintain the order. With the 
reduced production, the Committee determined an assessment rate of 
$0.30 per bushel would be necessary to maintain the order. That rate is 
almost double the

[[Page 6841]]

existing assessment rate. Increasing the assessment rate would have 
meant a further reduction in returns. The Committee believes the 
suspension will help increase returns by reducing costs.
    Citrus canker has reduced the Florida lime industry from 
approximately 3,200 acres before the outbreak of citrus canker to less 
than 1,000 acres currently. The only known way to eradicate citrus 
canker is to bulldoze the infected and exposed trees and burn them. The 
production area is also quarantined and no new trees can be planted at 
this time. The money saved as a result of the suspension can be used to 
offset the loss of income due to the reduced production of limes.
    Two commenters in support of suspension noted that this change is 
for a period not to exceed one year. The Committee determined that 
suspending regulations for a period not to exceed one year would give 
the industry time to assess the citrus canker eradication efforts and 
evaluate the effects of no regulations on the market. During the 
suspension, the Committee will meet periodically to discuss the effects 
citrus canker has had on the industry and the impact of no regulation. 
After the one-year period, regulations will return absent further 
action by the Committee. However, if conditions warrant, the Committee 
could recommend reinstating the suspended requirements earlier. During 
the period of suspension, handlers of domestic and imported limes are 
free to voluntarily obtain inspection to assure the quality of the 
limes marketed, and to meet the needs of their customers.
    Two of the comments in favor of the rule discussed maintaining 
quality in the absence of regulations. Both commenters stated that the 
market and consumers would dictate the quality of limes that is 
acceptable. Shippers will continue to supply their customers with a 
high quality product because the buyer will pay a premium price for it. 
Also, as previously noted, inspection can be obtained to assure that 
the limes meet buyer specifications.
    Twenty-one comments were received in opposition to this rule. 
Fourteen were from importers of limes and seven comments were received 
from Florida lime growers and handlers.
    The fourteen lime importers opposing the suspension were concerned 
by the potential of poor quality imports, and the negative impact such 
imports could have on market prices and sales. Section 8e of the Act 
provides that when certain domestically produced commodities, including 
limes, 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 suspends regulations for 
domestically produced limes, a corresponding change to the import 
regulations must also be made.
    The comments received from importers all expressed concern for the 
impact on quality resulting from the suspension. These same or similar 
concerns were also expressed in six of the comments received from 
Florida lime growers and handlers. The Committee itself had similar 
concerns, and weighed these concerns against the need to reduce costs. 
For this reason, the Committee recommended that the suspension of 
requirements be effective for one year only. This will enable the 
Committee to study the impacts of canker and the suspension, reduce 
costs during a very difficult time, and consider appropriate actions 
for ensuing seasons. If the elimination of the current requirements 
does result in the shipment of lower quality limes and markets are 
hurt, the Committee could recommend reinstitution of the requirements.
    This rule relaxes requirements and provides handlers and importers 
of limes with more flexibility in meeting the needs of their buyers. 
Handlers and importers will be able to market limes without inspection 
and eliminate inspection costs. Buyer and seller interaction will 
determine the terms and conditions of sales and the quality of limes 
sold and purchased. As previously noted, even though inspection 
requirements are suspended, inspection of limes can be obtained on a 
voluntary basis for a fee by the handler or importer to assure quality 
and meet customer requirements.
    The Committee believes one year of suspension will determine if 
consumer demand will keep quality high or result in product 
substitution and loss of market share. The purpose of this rule is to 
reduce the burden on the industry. If at any time during the suspension 
the Committee determines this action is having an unfavorable impact on 
the industry, the Committee could meet and rescind the suspension. 
Consequently, the Committee recommended suspending provisions for one 
year to garner the benefits of the associated cost savings and to study 
the effect on the market. This action reduces costs in view of the 
current industry situation. It also provides an opportunity to evaluate 
the progress on the eradication of citrus canker and the market impact 
of no regulation.
    Five commenters addressed the suspension as if it were a 
termination of the marketing order. This action does not terminate the 
order. It only provides a one-year suspension of the regulations 
specified above. Terminating the order would require additional 
Committee action or action on the part of the industry.
    Four comments stated that this rule change would only benefit 
importers of limes by allowing inferior limes to be imported into the 
U.S. It is doubtful whether the importation of inferior quality limes 
will benefit importers. Experience has shown that the marketing of poor 
quality tends to cause the market to deteriorate for everyone.
    Another commenter expressed concern regarding Committee membership 
when an industry member may import limes in addition to handling limes. 
The commenter was concerned that this could unduly shape the decision-
making of the Committee and bias decisions in favor of importers. The 
Committee is established and selected in accordance with the provisions 
of the order. Committee meetings concerning this action were widely 
publicized throughout the lime industry and all interested persons were 
invited to attend the meetings and participate in Committee 
deliberations on all issues. Further, many of the comments received in 
opposition to this action were from importers.
    One commenter stated that some of the members voting for suspension 
were not qualified to serve as members. Nominations for the Committee 
were held in February 2001, and the new Committee was seated for the 
April meeting. Prior to seating the new Committee, qualifications to 
serve were confirmed by USDA field representatives.
    Two comments expressed concern that some Committee members were not 
present at the time the Committee voted to make this recommendation. As 
with all Committee meetings, the time and place of the Committee 
meetings were well publicized throughout the industry. All members of 
the Committee and growers and handlers in the industry were given 
reasonable notice of the meeting, and given an opportunity to attend.
    One commenter expressed concern that the members of the Committee 
that made this recommendation would be responsible for ending the 
suspension. The suspension of the handling, inspection, and assessment 
requirements is for a period of time not to exceed one year. At the end 
of that time, no action by the Committee will be required to reinstate 
regulations. Regulations will revert back at the end of the one-year 
period. However, further suspension or termination would

[[Page 6842]]

require action on the part of the Committee and a vote. The suspension 
could be removed sooner if marketing conditions deteriorate for limes, 
or for other good cause.
    Two commenters stated that this action should be postponed until 
after the continuance referendum required under the order. Every sixth 
year, growers vote in a continuance referendum to determine whether or 
not the industry continues to support the marketing order. Such a 
referendum, absent this suspension, would have been scheduled for some 
time during the coming year. It now will most likely be scheduled after 
the suspension expires.
    However, a continuance referendum would be an indication of 
industry support for the order, not an indicator of support or 
opposition to the suspension. Support for the order is something 
different than what is contemplated by this action. This suspension 
does not terminate the marketing order. This action was recommended by 
the Committee to reduce industry costs and to evaluate the progress of 
citrus canker and the market's response to no regulation during the 
one-year suspension.
    USDA believes postponing the suspension until after a continuance 
referendum is held would not be in the best interest of industry. The 
question at hand is not whether or not to terminate the marketing 
order, but on whether or not the industry would benefit from the cost 
savings provided by the suspension. The Committee is the organization 
responsible for the local administration of the marketing order. The 
Committee voted six in favor to one opposed in support of the 
suspension. Delaying the suspension would only postpone the industry's 
opportunity to benefit from the cost saving offered by this suspension.
    Another commenter stated that growers who have the majority of lime 
acreage do not support the suspension. The marketing order is created 
to benefit all growers, not just the ones with the most acreage. We do 
note that, of the grower members seated for the vote recommending this 
suspension, all three voted for suspension.
    One commenter stated that the industry is still strong enough to 
maintain the marketing order. Another stated that the industry has a 
willingness to continue. The lime industry has overcome past hardships. 
However, this action will provide cost reduction relief in view of the 
current situation facing the lime industry.
    Growers are facing reduced production from canker and increased 
costs from requirements established to battle its spread. After 
Hurricane Andrew, the Committee recommended that certain regulations be 
relaxed and assessments be eliminated for two years to help the 
industry recover. This action is another such incidence. This action 
does not terminate the order, but offers some cost relief to provide 
the industry an opportunity to recover.
    In January 1996, the Committee was concerned by the state of the 
industry. To address its concerns, the Committee voted to suspend all 
regulation for a six-month period. However, prior to the suspension 
taking effect, the Committee determined the industry had sufficiently 
recovered and voted to rescind the suspension. The Committee has taken 
a similar action here. At any time during the one-year suspension, the 
Committee could vote to rescind the suspension and return to 
regulation.
    Another commenter recommended that requirements for imports of size 
250's apply year round as opposed to six months. However, this 
recommendation is not within the scope of the proposed rule on 
suspending the requirements.
    One comment was received after the comment period ended. This 
comment did not raise any issues that were raised by comments that were 
timely filed.
    The suspension will allow those still active in the lime industry 
to benefit from a needed reduction in costs given the current 
circumstances facing the industry. A one-year suspension of the 
regulations will provide needed cost savings and a period to evaluate 
the status of canker and on the market effects of the suspension of 
regulation. Accordingly, no changes are being made to the rule as it 
was proposed, based on the comments received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 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.
    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 matter presented, including the 
information and recommendation submitted by the Committee, the comments 
received, and other available information, it is hereby found that the 
provisions suspended, as hereinafter set forth, will not tend to 
effectuate the declared policy of the Act for the period of suspension. 
Therefore, these provisions of the order are being suspended.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because handlers are already shipping 
limes from the 2001-02 crop, and this rule needs to be in effect as 
soon as possible to provide relief to the Florida lime industry. No 
special preparations are needed by handlers and importers to take 
advantage of this relaxation. Also, the industry has been discussing 
this issue for some time, and the Committee has kept the industry well 
informed. It has also been widely discussed at various industry and 
Committee meetings.

List of Subjects

7 CFR Part 911

    Limes, Marketing agreements, Reporting and recordkeeping 
requirements.

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 911 and 944 are 
amended as follows:

PART 911--LIMES GROWN IN FLORIDA

    1. The authority citation for 7 CFR parts 911 and 944 continues to 
read as follows:

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


    2. In part 911, Secs. 911.110, 911.120, 911.130, 911.131, 911.234, 
911.311, 911.329, and 911.344 are suspended in their entirety effective 
February 19, 2002, through February 24, 2003.

PART 944--FRUITS; IMPORT REGULATIONS

    3. In Part 944, Sec. 944.209 is suspended in its entirety effective 
effective February 19, 2002 through February 24, 2003.

    Dated: February 8, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-3633 Filed 2-13-02; 8:45 am]
BILLING CODE 3410-02-P