[Federal Register Volume 68, Number 139 (Monday, July 21, 2003)]
[Rules and Regulations]
[Pages 42943-42947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18448]



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  Federal Register / Vol. 68, No. 139 / Monday, July 21, 2003 / Rules 
and Regulations  

[[Page 42943]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV03-989-6 IFR]


Raisins Produced From Grapes Grown in California; Revision of 
Varietal Types

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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

SUMMARY: This rule revises the list of varietal types of raisins 
specified 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 applied according to varietal type of 
raisin. This action combines the Oleate and Related Seedless varietal 
type (Oleates) with the Natural (sun-dried) Seedless varietal type 
(Naturals), and makes conforming changes to the order's volume and 
quality regulations. This action addresses changing cultural practices 
in the California raisin industry.

DATES: Effective July 22, 2003. Comments must be received by September 
19, 2003.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, 1400 Independence Avenue SW., Stop 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938, 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 made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours, or can be viewed at: http://www.ams.usda.gov/fv/moab.html.

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.''
    The Department of Agriculture (USDA) 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 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 revises the list of varietal types of raisins specified 
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 applied according to varietal type of raisin. This action combines 
the Oleate varietal type with the Natural varietal type, and makes 
conforming changes to the order's volume and quality regulations. This 
action was unanimously recommended by the RAC at a meeting on May 15, 
2003, and addresses changing cultural practices in the California 
raisin industry.

Varietal Types

    The order provides authority for quality and volume regulations 
that are applied according to varietal type of raisin. 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. There are 
currently 10 different varietal types of raisins listed in this 
section.
    Paragraph (a) in Sec.  989.110 currently defines the Natural 
varietal type to include all sun-dried seedless raisins that possess 
characteristics similar to Natural Thompson Seedless (NTS) raisins 
which, for the purpose of

[[Page 42944]]

expediting drying, have not been dipped in or sprayed with water, with 
or without soda, oil or other chemicals prior to or during the drying 
process. Naturals are the predominant varietal type of California 
raisin, comprising about 90 percent of California's raisin production.
    Paragraph (c) in Sec.  989.110 defines the Oleate varietal type to 
include all raisins produced by sun-drying or artificial dehydration of 
seedless grapes which, in order to expedite drying, are dipped in or 
sprayed with water with soda, oil, Ethyl Oleate, Methyl Oleate or any 
other chemicals either while such grapes are on the vine or after they 
have been removed from the vine.
    Cultural practices are evolving in the raisin industry in an effort 
to reduce production and harvest costs. Traditionally, most California 
raisins have been made by hand picking grapes from the vine and drying 
them in the sun on trays laid on the ground. The process is labor 
intensive and expensive. Thus, in an effort to reduce costs, some 
growers have switched to sun-drying their grapes on the vine, and then 
mechanically harvesting them (``dried on the vine'' or DOV). A drying 
agent such as Oleate may be applied to the grapes on the vine to hasten 
the drying process.
    Additionally, there is concern that Oleate could be applied to sun-
dried Natural raisins, and that the raisins could be represented as 
Oleates to circumvent the volume regulations that are typically in 
effect for Naturals. With the exception of the 1998-99 crop year, 
volume regulation has been in place for Naturals every year since 1983-
84. (The raisin crop year (season) runs from August 1 through July 31.) 
For the 1992-93 through the 1999-2000 seasons, average acquisitions of 
Oleates were 441.38 tons. For the 2000-01 and 2001-02 seasons, Oleate 
acquisitions were 3,669 and 6,495 tons, respectively. Volume regulation 
was in place for the beginning of the 2001-02 season for Oleates, but 
was lifted in November 2001 due to no acquisitions up to that time. 
Once volume regulation was lifted, Oleates were acquired. For the 2002-
03 season, the RAC recommended final volume regulation percentages for 
Oleates in January 2003. However, by the week ending February 1, 2003, 
Oleate acquisitions were at 2,121 tons, and far below the 5,268-ton 
trade demand. Because the supply of Oleates was well below demand, 
volume regulation was lifted in mid-February 2003. Since that time, 
2002-03 Oleate acquisitions have increased to 6,217 tons through the 
week ending April 26, 2003. Based on this data, and the fact that most 
raisins are typically acquired much earlier in the crop year, the RAC 
is concerned that Oleate could be sprayed on bins of Naturals and that 
the raisins could be represented as Oleates to circumvent volume 
regulation.
    These different types of Oleate-treated grapes/raisins are 
difficult to distinguish from non-Oleate treated raisins. At its May 
15, 2003 meeting, the RAC recommended eliminating the Oleate varietal 
type, and revising the Natural varietal type to include Oleates. 
Specifically, Naturals will include all sun-dried raisins possessing 
similar identifiable characteristics as raisins produced from Natural 
Thompson Seedless grapes, or similar grape varieties, whether dried on 
trays or on the vine, with or without application of a drying agent 
that is a food-grade additive, such as, soda, oil, Ethyl Oleate, or 
Methyl Oleate prior to, during, or after the drying process. The 
Committee recommended using ``accepted food-grade drying agent'' in the 
definition rather than ``drying agent that is a food-grade additive''. 
USDA changed the Committee's recommendation so it conforms more closely 
to accepted U.S. Food and Drug Administration terminology. Soda was 
also added to the examples of drying agents because soda has been used 
by the industry for this purpose in past years. Accordingly, paragraph 
(c) in Sec.  989.110 regarding Oleates is removed, and paragraph (a) 
regarding Naturals is revised to include Oleates.
    Industry members considered the merits of revising the definition 
for Dipped Seedless raisins. Dipped Seedless includes all raisins 
produced by artificial dehydration of seedless grapes that possess the 
characteristics similar to Thompson Seedless grapes which, in order to 
expedite drying, have been dipped in or sprayed with water only after 
such grapes have been removed from the vine. The current Oleate 
definition includes raisins produced by artificially dehydrating grapes 
with the application of a drying agent to the grapes. The question was 
raised regarding how raisins made from artificially dehydrated Oleate-
treated grapes would be classified if sun-dried Oleates are included 
with Naturals. Industry members concluded that no such raisins are 
currently produced. Accordingly, the definition of Dipped Seedless 
raisins will not be revised to include artificially dehydrated Oleate-
treated grapes.

Volume Regulation and Reserve Pool Requirements

    The order provides authority for volume regulation designed to 
promote orderly marketing conditions, stabilize prices and supplies, 
and improve producer returns. When volume regulation is in effect, a 
certain percentage of the California raisin crop may be sold by 
handlers to any market (free tonnage) while the remaining percentage 
must be held by handlers in a reserve pool (reserve) for the account of 
the RAC. Reserve raisins are disposed of through various programs 
authorized under the order. For example, reserve raisins may be sold by 
the RAC to handlers for free use or to replace part of the free tonnage 
they exported; carried over as a hedge against a short crop the 
following year; or may be disposed of in other outlets not competitive 
with those for free tonnage raisins, such as government purchase, 
distilleries, or animal feed. Net proceeds from sales of reserve 
raisins are ultimately distributed to producers.
    Section 989.66 of the order specifies general requirements for 
reserve tonnage. Reserve tonnage acquired by handlers from producers 
and reserve tonnage transferred to a handler from the RAC must be held 
by the handler for the account of the RAC. Reserve tonnage must be 
stored separate and apart from other raisins and identified according 
to rules and procedures specified by the RAC and approved by the 
Secretary. Handlers may, under the direction and supervision of the 
RAC, substitute for any reserve tonnage raisins a like quantity of 
standard raisins of the same varietal type and of the same or more 
recent year's production.
    Section 989.166 of the order's administrative rules and regulations 
specifies additional requirements for reserve raisins. Paragraph (a)(1) 
of that section prescribes identification, delivery, and transfer 
requirements for Natural reserve raisins. Specifically, lots of Natural 
reserve raisins that have been dipped in or sprayed with water, with or 
without chemicals, prior to or during the drying process, for purposes 
other than to expedite drying, or that have been produced from seedless 
varieties of grapes other than Thompson Seedless, must be identified by 
the Inspection Service affixing to one container on each pallet or to 
each bin in each lot, a prenumbered RAC control card which must remain 
affixed until the raisins are processed or disposed of as natural 
condition raisins. Additionally, such reserve raisins cannot be 
delivered to the RAC nor transferred to another handler without 
approval of the RAC or the receiving handler.
    The current language in Sec.  989.166(a)(1) regarding chemicals 
applied to Naturals for purposes other than to expedite drying was 
added to

[[Page 42945]]

the regulations in 1984 and refers to MP-11, a fungicide. The language 
regarding Naturals produced from grapes other than Thompson Seedless 
was added in 1991. In these respective instances, some handlers had 
indicated that they would not pack MP-11 raisins nor raisins made from 
grapes other than Thompson Seedless. In both cases, the RAC determined 
that these categories of Naturals should be considered as Naturals for 
volume and quality control purposes, but that additional requirements 
should be in place regarding identification, delivery, and transfers of 
reserve raisins.
    As the RAC considered the merits of combining Oleates with 
Naturals, some handlers indicated that they would not pack Naturals 
treated with a drying agent such as Oleate. Thus, at its May 2003 
meeting, the RAC recommended revising Sec.  989.166(a)(1) to include 
reserve Naturals treated with drying agents. Such reserve raisins will 
have to be tagged and identified accordingly, and cannot be delivered 
to the RAC nor transferred to another handler without the approval of 
the RAC or the receiving handler. Handlers with only Oleate-treated 
reserve could substitute non-Oleate treated free tonnage Naturals if 
necessary. The RAC also recommended adding in this section authority 
for the RAC to specify additional categories of Naturals that have been 
produced using other cultural practices and that will be subject to 
these additional requirements. Any such additions will be made with 
USDA approval. This will give the RAC flexibility to address changing 
cultural practices regarding different categories of Naturals in the 
future. Section 989.166(a) will be revised accordingly.
    Another concern regarding this issue is the impact of volume 
regulation on handlers that may have built up a market for Oleate-
treated raisins. There is concern that volume regulation would 
contribute to handlers losing this market. However, pursuant to Sec.  
989.66(b)(3), handlers of Oleate-treated Naturals will have the 
flexibility to substitute free tonnage Naturals that will be acceptable 
to the RAC. Thus, handlers could substitute non-Oleate treated free 
tonnage Naturals for their Oleate-treated reserve raisins, and use 
their Oleate-treated fruit to meet their market needs.

Quality Requirements

    This rule also revises the quality requirements specified in the 
order's regulations to remove references to Oleates. Specifically, this 
rule revises: The incoming quality requirements; the table of factors 
for converting between natural condition and processed weight; and the 
outgoing quality requirements. 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. Paragraph (b) of that section currently specifies 
requirements for three varietal types of raisins--Dipped Seedless, 
Oleate, and Other-Seedless Sulfured. Specifically, such raisins must 
have been prepared from sound, wholesome, matured grapes properly dried 
and cured, and shall: (1) Be fairly free from damage by sugaring, 
mechanical injury, sunburn, or other similar injury; (2) have a normal 
characteristic flavor and odor of properly prepared raisins; (3) 
contain no more than 5 percent, by weight, of substandard raisins 
(raisins that show development less than that characteristic of raisins 
prepared from fairly well-matured grapes), and also contain at least 50 
percent well-matured or reasonably well-matured raisins; (4) not exceed 
14 percent moisture; and (5) be of such quality and condition as can be 
expected to withstand storage as provided in the order and that when 
processed in accordance with good commercial practice will meet the 
minimum standards for processed raisins established by the RAC. This 
rule revises this paragraph to remove reference to the Oleate varietal 
type.
    Paragraph (a) of Sec.  989.701 specifies incoming quality 
requirements for Naturals, Monukka and Other Seedless raisins. This 
rule combines Oleates with the Natural varietal type. Thus, the 
incoming quality requirements specified in Sec.  989.701(a) will apply 
to Oleates. With the exception of the moisture requirement, the 
specifications in paragraphs (a) and (b) of Sec.  989.701 are 
identical. Paragraph (a) specifies that Naturals, Monukkas, and Other 
Seedless raisins cannot exceed 16 percent moisture. The RAC's 
recommendation includes Oleates meeting a less restrictive moisture 
tolerance of 16 percent as opposed to the 14 percent currently required 
for Oleates.

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. The substandard and maturity dockage 
factors are identical for Oleates and Naturals. This rule simply 
removes all references to Oleates contained in Sec. Sec.  989.210(a), 
989.212, and 989.213. This rule also removes paragraph (e) in Sec.  
989.213 that was applicable only to the 1998-99 crop year and is thus 
obsolete.

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 removes the 
reference to Oleates and its 0.92 conversion factor. Additionally, the 
table specifies a conversion factor for Naturals of 0.92. Thus, 
combining Oleates with the Natural varietal type results in no change 
to the conversion factor. Section 989.601 is revised accordingly.

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. Paragraph (a) of 
that section specifies identical requirements for four varietal types 
of raisins--Natural, Dipped Seedless, Oleate, and Other-Seedless 
Sulfured. Since the outgoing requirements for Naturals and Oleates are 
identical, this rule removes the reference to Oleates from paragraph 
(a).
    Accordingly, Naturals 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

[[Page 42946]]

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 requires that these forms be revised to remove 
the columns for Oleates. The current total annual reporting burden for 
these six forms is 660 hours. This rule will not change this burden on 
handlers.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), these information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) under 
OMB Control Number 0581-0178.

Initial 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 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 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 service firms are 
defined by the Small Business Administration (13 CFR 121.201) 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 
$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 applied according to varietal type of raisin. This rule 
combines the Oleate varietal type with the Natural varietal type, and 
makes conforming changes to the order's volume and quality regulations. 
Pursuant to Sec.  989.10 of the order, Sec.  989.110 of the regulations 
is revised to remove the Oleate varietal type, and to include sun-dried 
raisins that may or may not be treated with Oleate or similar food-
grade drying agent in the definition of the Natural varietal type. 
Pursuant to Sec.  989.66, Sec.  989.166(a)(1) is revised to add 
identification, delivery, and transfer requirements for Naturals 
treated with Oleate, or similar drying agents. Finally, pursuant to 
Sec. Sec.  989.58 and 989.59, the order's quality regulations are 
revised to remove references to Oleates as follows: incoming quality 
requirements specified in Sec. Sec.  989.210, 989.212, 989.213, and 
989.701; a table of factors for converting between natural condition 
and processed weight specified in Sec.  989.601; and outgoing quality 
requirements specified in Sec.  989.702.
    Regarding the impact of this action on affected entities, this rule 
helps ensure that sun-dried Natural Thompson raisins or raisins 
produced from similar grape varieties will be subject to the same 
volume regulation percentages. Concerns about circumventing volume 
regulation by representing Naturals as Oleates will be addressed. If 
volume regulation were in effect, handlers who have a market for 
Oleate-treated raisins will have the opportunity to substitute free 
tonnage non-Oleate treated Naturals for their reserve Oleates to meet 
their market needs.
    The RAC considered several alternatives to this action. In the 
spring of 2002, the RAC recommended, and USDA approved, conducting a 
research study to determine if it is possible to distinguish whether 
Oleate or a similar agent was applied to a grape as opposed to a 
raisin. This would assist in determining if Oleate or a similar drying 
agent was being applied to raisins to circumvent volume regulation. 
Preliminary information indicates that distinguishing if Oleate or 
similar drying agent were applied to grapes or raisins may not be 
possible. There were also some discussions on establishing color 
specifications to differentiate between non-Oleate Naturals, Oleate-
treated Naturals, and DOV. However, the general consensus is that 
raisins darken with time so that color specifications would be very 
difficult to apply. Further, there were discussions about requiring 
producers to file a declaration with the RAC prior to the beginning of 
the crop year regarding the use of Oleate or similar agent. However, 
such a producer declaration could not be required.
    Regarding the impact of this action on reporting requirements under 
the order, all raisin handlers are currently required to submit various 
reports to the RAC where the data collected is segregated by varietal 
type of raisin. As previously listed, 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 requires that these forms be 
revised to remove the columns for Oleates. The current total annual 
burden for these six forms is 660 hours. This rule will 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, 
Natural raisins must at least 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, this action was reviewed at several industry meetings as 
follows--the RAC's Industry Solutions Subcommittee on April 21, 2003, 
the Administrative Issues Subcommittee on April 23, 2003, work group 
meetings on April 29 and May 12, 2003, and an

[[Page 42947]]

Administrative Issues Subcommittee and a RAC meeting on May 15, 2003. 
All of these meetings 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. Finally, interested persons are 
invited to submit information on the regulatory and informational 
impact 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: 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.
    Comments are invited concerning this rule. A 60-day comment period 
is provided to allow interested persons to respond to this rule. All 
written comments received will be considered before a final decision is 
made on this matter.
    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.
    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 good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) This rule needs to be implemented as soon as possible 
because the 2003-04 crop year begins August 1, 2003; (2) the RAC 
unanimously recommended these changes at a public meeting and 
interested parties had an opportunity to provide input; and (3) a 60-
day comment period is provided and all comments received will be 
considered in finalizing this rule.

List of Subjects in 7 CFR Part 989

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

0
For the reasons set forth in the preamble, 7 CFR part 989 is amended as 
follows:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 989 continues to read as 
follows:

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


0
2. Section Sec.  989.110 is amended by:
0
a. Revising paragraph (a);
0
b. Removing paragraph (c); and
0
c. Redesignating paragraphs (d) through (j) as paragraphs (c) through 
(i).
    The revised text reads as follows:


Sec.  989.110  Varietal types.

* * * * *
    (a) Natural (sun-dried) Seedless includes all sun-dried seedless 
raisins possessing similar identifiable characteristics as raisins 
produced from Thompson Seedless grapes or similar grape varieties, 
whether dried on trays or on the vine, with or without the application 
of a drying agent that is a food-grade additive such as, soda, oil, 
Ethyl Oleate, or Methyl Oleate prior to, during, or after the drying 
process.
* * * * *

0
3. In Sec.  989.166, paragraph (a)(1) is revised to read as follows:


Sec.  989.166  Reserve tonnage generally.

    (a) * * * (1) Natural (sun-dried) Seedless. Handlers who acquire 
any lot of natural condition Natural (sun-dried) Seedless raisins which 
have been dipped in or sprayed with water, with or without chemicals, 
prior to or during the drying process, for purposes other than to 
expedite drying, or that have been produced from seedless varieties of 
grapes other than Thompson Seedless (i.e., Fiesta, Emerald Seedless, 
Perlette, Delight, and other similar grape varieties), or that have 
been treated with Oleate or similar drying agents, or such other 
Natural (sun-dried) Seedless raisins that have been produced using 
other cultural practices as recommended by the Committee with the 
approval of the Secretary, may set aside such raisins to satisfy their 
reserve pool obligation: Provided, That such raisins shall be 
identified by the Inspection Service affixing to one container on each 
pallet or to each bin in each lot, a prenumbered RAC control card (to 
be furnished by the Committee) which shall remain affixed until raisins 
are processed or disposed of as natural condition raisins: and Provided 
further, That such raisins shall not be delivered to the Committee or 
transferred to another handler without approval of the Committee or the 
receiving handler.
* * * * *


Sec.  989.210  [Amended]

0
4. In Sec.  989.210, the first sentence in paragraph (a) is amended to 
remove the words ``Oleate and Related Seedless,''.


Sec.  989.212  [Amended]

0
5. In Sec.  989.212, the first sentence in paragraph (a) and the 
heading in paragraph (b) are amended to remove the words ``Oleate and 
Related Seedless,''.


Sec.  989.213  [Amended]

0
6. Section 989.213 is amended by:
0
a. Removing the words ``Oleate and Related Seedless,'' in the first 
sentence in paragraph (a) and the introductory text in paragraphs (b), 
(c), and (d).
0
b. Removing paragraph (e) and the note immediately following it.


Sec.  989.601  [Amended]

0
7. In Sec.  989.601, the table is revised to read as follows:


Sec.  989.601  Conversion factors for raisin weight.

* * * * *

------------------------------------------------------------------------
                                                              Conversion
                        Varietal type                           factor
------------------------------------------------------------------------
Natural (sun-dried) Seedless................................        0.92
Golden Seedless, Dipped Seedless, Other Seedless, and Other         0.95
 Seedless-Sulfured..........................................
Muscats (including raisins with seeds):
  Seeded....................................................        0.80
  Unseeded..................................................        0.92
Sultana.....................................................        0.92
Zante Currant...............................................        0.91
------------------------------------------------------------------------

Sec.  989.701  [Amended]

0
8. In Sec.  989.701, the first sentence in paragraph (b) is amended by 
removing the words ``Oleate and Related Seedless,''.


Sec.  989.702  [Amended]

0
9. In Sec.  989.702, the paragraph heading and the first sentence in 
paragraph (a) are amended by removing the words ``Oleate and Related 
Seedless,''.

    Dated: July 16, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-18448 Filed 7-16-03; 5:08 pm]
BILLING CODE 3410-02-P