[Federal Register Volume 67, Number 176 (Wednesday, September 11, 2002)]
[Rules and Regulations]
[Pages 57501-57503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23036]



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  Federal Register / Vol. 67, No. 176 / Wednesday, September 11, 2002 / 
Rules and Regulations  

[[Page 57501]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV02-989-1 FIR]


Raisins Produced From Grapes Grown in California; Addition of a 
New Varietal Type and Quality Requirements for Other Seedless-Sulfured 
Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule that added a new varietal 
type of raisin under the Federal marketing order for California raisins 
(order). The order regulates the handling of raisins produced from 
grapes grown in California and is locally administered by the Raisin 
Administrative Committee (RAC). The order provides authority for volume 
and quality regulations that are imposed by varietal type. This action 
continues to establish and add to the regulations a new varietal type 
(Other Seedless-Sulfured raisins), along with quality requirements for 
this varietal type. This is a new type of raisin being produced by some 
industry members.

EFFECTIVE DATE: Effective October 11, 2002.

FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Senior Marketing 
Specialist, California Marketing Field Office, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 2202 
Monterey Street, suite 102B, Fresno, California 93721; telephone: (559) 
487-5901, Fax: (559) 487-5906; 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 rule is issued under Marketing 
Agreement and Order No. 989 (7 CFR part 989), both as amended, 
regulating the handling of raisins produced from grapes grown in 
California, hereinafter referred to as the ``order.'' The order is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
    USDA is issuing this rule in conformance with Executive Order 
12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive intent. Under 
the order provisions now in effect, varietal types and quality 
requirements may be established for raisins acquired by handlers during 
the crop year. This rule continues to establish a new varietal type and 
quality requirements for Other Seedless-Sulfured raisins. 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. Such 
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.
    This rule continues to add a new varietal type of raisin under the 
order. The order regulates the handling of raisins produced from grapes 
grown in California and is administered locally by the RAC. The order 
provides authority for volume and quality regulations that are imposed 
by varietal type. This action continues to establish and add to the 
regulations a new varietal type (Other Seedless-Sulfured raisins), 
along with quality requirements for this varietal type. This is a new 
type of raisin being produced by some industry members. This action was 
recommended by the RAC at a meeting in August 2001, and discussed 
further at RAC meetings in September and November 2001. Changes to the 
import regulation are being made in a separate rule.

Varietal Type for Other Seedless-Sulfured Raisins

    The order provides authority for volume and quality regulations 
that are imposed by varietal type. Section 989.10 of the order defines 
the term varietal type to mean raisins generally recognized as 
possessing characteristics differing from other raisins in a degree 
sufficient to make necessary or desirable separate identification and 
classification. That section includes a list of eight varietal types, 
and provides authority for the RAC, with the approval of USDA, to 
change this list. A description of these varietal types, along with 
additional varietal types, may be found in Sec.  989.110 of the order's 
administrative rules and regulations. Prior to implementation of the 
interim final rule, there were nine different varietal types of raisins 
listed in this section.
    Some industry members have found a new market for raisins made by 
dehydrating sulfured red seedless grapes. These raisins did not fit 
into any of the varietal types specified in Sec.  989.110. Such raisins 
are similar to the Other Seedless varietal type, except they have been 
sulfured. Such raisins are also similar to the Golden Seedless varietal 
type, but may not meet the color requirements for Golden Seedless 
raisins. Golden Seedless raisins are made from green seedless grapes 
and are mostly yellowish green to greenish

[[Page 57502]]

amber in color when sulfured. Red seedless grapes typically vary in 
color when sulfured.
    Thus, the RAC recommended establishing, and adding to the 
regulations, a new varietal type--Other Seedless-Sulfured raisins. This 
allows the RAC to consider Other Seedless-Sulfured raisins separate 
from other varietal types for the purpose of volume and quality 
regulation, thereby recognizing distinct differences in supply and 
demand conditions, and raisin characteristics. Accordingly, a new 
paragraph (j) was added to Sec.  989.110 to define Other Seedless-
Sulfured as all raisins produced from Ruby Seedless, Kings Ruby 
Seedless, Flame Seedless and other seedless grapes not included in any 
of the varietal categories for Seedless raisins which have been 
artificially dehydrated and sulfured.

Quality Requirements for Other Seedless-Sulfured Raisins

    This rule continues to add quality requirements for Other Seedless-
Sulfured raisins. Specifically, this rule continues to add: incoming 
quality requirements (which includes adding these raisins to the 
order's weight dockage system); a factor for converting between natural 
condition and processed weight; and outgoing quality requirements for 
Other Seedless-Sulfured raisins. The details of these changes are 
discussed below.

Incoming Quality Requirements

    Section 989.58(a) of the order provides authority for quality 
control regulations whereby natural condition raisins that are 
delivered from producers to handlers must meet certain incoming quality 
requirements. Section 989.701 of the order's regulations specifies 
minimum grade and condition standards for natural condition raisins for 
each varietal type. Prior to implementation of the interim final rule, 
paragraph (b) of that section specified requirements for two varietal 
types of raisins--Dipped Seedless and Oleate and Related Seedless 
raisins. The RAC determined that natural condition Other Seedless-
Sulfured raisins are similar to these two varietal types and, 
therefore, they should have the same incoming quality requirements. 
Accordingly, paragraph (b) of Sec.  989.701 was revised to include 
Other Seedless-Sulfured raisins.

Weight Dockage System

    Section 989.58(a) also contains authority for handlers to acquire 
natural condition raisins that fall outside the tolerance established 
for maturity, which includes substandard raisins, under a weight 
dockage system. Handler acquisitions of raisins and payments to 
producers are adjusted according to the percentage of substandard 
raisins in a lot, or the percentage of raisins that fall below certain 
levels of maturity. Section 989.210(a) of the order's regulations lists 
the varietal types of raisins that may be acquired pursuant to a weight 
dockage system. Sections 989.212 and 989.213 contain tables with 
dockage factors applicable to lots of raisins that fall outside the 
tolerances for substandard raisins and maturity, respectively, 
specified in Sec.  989.701.
    Because these raisins are similar to Dipped Seedless and Oleate and 
Related Seedless raisins, this rule continues to add Other Seedless-
Sulfured raisins to the list contained in Sec.  989.210(a), the 
substandard dockage table specified in Sec.  989.212(b), the list 
regarding maturity in Sec.  989.213(a), and to the maturity dockage 
tables in Sec.  989.213(b) and (d). Additionally, this rule continues 
to remove obsolete language contained in Sec. Sec.  989.212 and 989.213 
that was applicable to only the 1998-99 crop year.

Raisin Weight Conversion Table

    Section 989.601 of the order's regulations specifies a list of 
conversion factors for raisin weights. The factors are used to convert 
the net weight of reconditioned raisins acquired by handlers as packed 
raisins to a natural condition weight. The net weight of the raisins 
after the completion of processing is divided by the applicable factor 
to obtain the natural condition weight. If the adjusted weight exceeds 
the original weight, the original weight is used. This rule continues 
to add Other Seedless-Sulfured raisins to that list, specifying a 
conversion factor of 0.95. These raisins are similar to Golden Seedless 
and Dipped Seedless for which 0.95 conversion factors are specified.

Outgoing Quality Requirements

    Section 989.59 of the order provides authority for quality control 
regulations for raisins subsequent to their acquisition by handlers 
(outgoing requirements). Section 989.702 of the order's regulations 
specifies minimum grade standards for packed raisins. Prior to 
implementation of the interim final rule, paragraph (a) of that section 
specified requirements for three varietal types--Natural (sun-dried) 
Seedless, Dipped Seedless, and Oleate and Related Seedless raisins. 
This rule continues to add Other Seedless-Sulfured raisins to paragraph 
(a).
    Accordingly, Other Seedless-Sulfured raisins must meet the 
requirements of U.S. Grade C as defined in the United States Standards 
for Grades of Processed Raisins (Sec. Sec.  52.1841 through 52.1858) 
issued under the Agricultural Marketing Act of 1946 (7 U.S.C. 1622 
through 1624). At least 70 percent, by weight, of the raisins in a lot 
must be well-matured or reasonably well-matured. With respect to 
select-sized and mixed-sized lots, the raisins must at least meet the 
U.S. Grade B tolerances for pieces of stem, and underdeveloped and 
substandard raisins, and small (midget) sized raisins must meet the 
U.S. Grade C tolerances for those factors.

Reporting Requirements

    All raisin handlers are currently required to submit various 
reports to the RAC where the data collected is segregated by varietal 
type of raisin. These reports include: (1) Weekly Report of Standard 
Raisin Acquisitions (RAC-1); (2) Weekly Report of Standard Raisins 
Received for Memorandum Receipt or Warehousing (RAC-3); (3) Monthly 
Report of Free Tonnage Raisin Disposition (RAC-20); (4) Weekly Off-
Grade Summary (RAC-30); (5) Inventory of Free Tonnage Standard Quality 
Raisins on Hand (RAC-50); and (6) Inventory of Off-Grade Raisins on 
Hand (RAC-51). This rule continues to require that an additional column 
be added to these six forms so that handlers can report Other Seedless-
Sulfured raisins separately. The total annual burden for these six 
forms is 660 hours. This action does not change this burden on 
handlers.

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 20 handlers of California raisins who are 
subject to regulation under the order and approximately 4,500 raisin 
producers in the regulated area. Small agricultural firms are defined 
by the Small Business Administration (13 CFR 121.201) as those having 
annual receipts of less than

[[Page 57503]]

$5,000,000, and small agricultural producers are defined as those 
having annual receipts of less than $750,000. Thirteen of the 20 
handlers subject to regulation have annual sales estimated to be at 
least $5,000,000, and the remaining 7 handlers have sales less than 
$5,000,000. No more than 7 handlers, and a majority of producers, of 
California raisins may be classified as small entities.
    The order provides authority for volume and quality regulations 
that are imposed by varietal type of raisin. This rule continues to 
establish and add to the regulations a new varietal type (Other 
Seedless-Sulfured raisins), along with quality requirements for this 
varietal type. This is a new type of raisin that is being produced by 
some industry members. A new paragraph (j) was added to Sec.  989.110 
of the order's regulations to define the varietal type Other Seedless-
Sulfured raisins. Pursuant to Sec. Sec.  989.58 and 989.59, quality 
requirements for Other Seedless-Sulfured raisins were added to the 
order's regulations as follows: incoming quality requirements were 
added to Sec. Sec.  989.210, 989.212, 989.213, and 989.701; a factor 
for converting between natural condition and processed weight is added 
to Sec.  989.601; and outgoing quality requirements were added to Sec.  
989.702.
    Regarding the impact of this action on affected entities, this rule 
allows the RAC to consider Other Seedless-Sulfured raisins separately 
from other varietal types of raisins for the purpose of volume and 
quality regulation, thereby recognizing distinct differences in supply 
and demand conditions for that product. Producers and handlers may take 
advantage of a separate and distinct market for Other Seedless-Sulfured 
raisins. This rule allows appropriate quality requirements to be 
applied to this new varietal type, which facilitates the production and 
handling of such raisins. In addition, this rule allows the RAC to 
examine data on acquisitions and shipments of Other Seedless-Sulfured 
raisins, as handlers submit various reports to the RAC where the data 
is segregated by varietal type. The RAC can analyze this data and 
assess marketing trends and opportunities for this unique varietal 
type. There are no expected additional costs associated with this 
regulation on either producers or handlers.
    The RAC considered some alternatives to this action. The RAC 
reviewed the existing varietal types to see whether Other Seedless-
Sulfured raisins could fit into an established category. The Golden 
Seedless and Other Seedless varietal types were examined. However, 
Other Seedless-Sulfured raisins may not meet the color requirements for 
Golden Seedless raisins. In addition, Other Seedless-Sulfured raisins 
do not fit into the Other Seedless category because that varietal type 
has historically included raisins that have not been sulfured. The 
industry determined that it was appropriate to establish a separate 
varietal type for Other Seedless raisins that had been dehydrated and 
sulfured.
    All raisin handlers are currently required to submit various 
reports to the RAC where the data collected is segregated by varietal 
type of raisin. These reports include: (1) Weekly Report of Standard 
Raisin Acquisitions (RAC-1); (2) Weekly Report of Standard Raisins 
Received for Memorandum Receipt or Warehousing (RAC-3); (3) Monthly 
Report of Free Tonnage Raisin Disposition (RAC-20); (4) Weekly Off-
Grade Summary (RAC-30); (5) Inventory of Free Tonnage Standard Quality 
Raisins on Hand (RAC-50); and (6) Inventory of Off-Grade Raisins on 
Hand (RAC-51). This rule continues to require that an additional column 
be added to these six forms so that handlers can report Other Seedless-
Sulfured raisins separately. The total annual burden for these six 
forms is 660 hours. This action does not change this burden on 
handlers.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection requirements referenced above 
have been approved by the Office of Management and Budget (OMB) under 
OMB Control No. 0581-0178. As with all Federal marketing order 
programs, reports and forms are periodically reviewed to reduce 
information requirements and duplication by industry and public sector 
agencies.
    Additionally, except for applicable section 8e import regulations, 
USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this rule. However, as previously stated, 
Other Seedless-Sulfured raisins must meet U.S. Grade C as defined in 
the United States Standards for Grades of Processed Raisins (Sec. Sec.  
52.1841 through 52.1858) issued under the Agricultural Marketing Act of 
1946 (7 U.S.C. 1622 through 1624).
    Further, the RAC's meetings on August 14, September 20, and 
November 13, 2001, where this action was deliberated were public 
meetings widely publicized throughout the raisin industry. All 
interested persons were invited to attend the meetings and participate 
in the industry's deliberations.
    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.
    An interim final rule concerning this action was published in the 
Federal Register on May 28, 2002, (67 FR 36789). Copies of the rule 
were mailed by Committee staff to all Committee members and alternates, 
the Raisin Bargaining Association, handlers and dehydrators. In 
addition, the rule was made available through the Internet by the 
Office of the Federal Register and USDA. That rule provided for a 60-
day comment period that ended on July 29, 2002. No comments were 
received.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the RAC and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.

List of Subjects in 7 CFR Part 989

    Grapes, Marketing agreements, Raisins, Reporting and recordkeeping 
requirements.

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

    Accordingly, the interim final rule amending 7 CFR part 989 which 
was published at 67 FR 36789 on May 28, 2002, is adopted as a final 
rule without change.

    Dated: September 4, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-23036 Filed 9-10-02; 8:45 am]
BILLING CODE 3410-02-P