[Federal Register Volume 69, Number 70 (Monday, April 12, 2004)]
[Proposed Rules]
[Pages 19118-19123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-8212]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 69, No. 70 / Monday, April 12, 2004 / 
Proposed Rules  

[[Page 19118]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 926

[Docket No. FV01-926-1 PR]


Proposed Data Collection, Reporting, and Recordkeeping 
Requirements Applicable to Cranberries Not Subject to the Cranberry 
Marketing Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would establish a new part 926 in the Code 
of Federal Regulations which would require persons engaged in the 
handling or importation of fresh cranberries or cranberry products 
(including handlers, producer-handlers, processors, brokers, and 
importers) not subject to the reporting requirements of the Federal 
cranberry marketing order (order) to report sales, acquisition, and 
inventory information to the Cranberry Marketing Committee (Committee), 
and to maintain adequate records on such activities. The establishment 
of the proposed data collection, reporting, and recordkeeping 
requirements for entities not subject to the order is authorized under 
an amendment to section 8(d) of the Agricultural Marketing Agreement 
Act of 1937. The additional information is needed by the Committee to 
make more informed recommendations to USDA for regulations authorized 
under the cranberry marketing order. This rule also announces the 
Agricultural Marketing Service's intention to request approval of the 
new data collection and reporting requirements by the Office of 
Management and Budget.

DATES: Comments must be received by June 11, 2004. Pursuant to the 
Paperwork Reduction Act, comments on the information collection burden 
must be received by June 11, 2004.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. 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] 
or www.regulations.gov. 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: Patricia A. Petrella or Kenneth G. 
Johnson, DC Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, Suite 2A04, Unit 155, 
4700 River Road, Riverdale, Maryland 20737; telephone: (301) 734-5243, 
Fax: (301) 734-5275; 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 proposed pursuant to the 
Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-
674], and as further amended October 22, 1999, by Public Law 106-78, 
113 Stat. 1171, hereinafter referred to as the ``Act''.
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This proposal will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of this rule.
    This proposed action is necessary to implement authority on 
cranberry data collection consistent with a 1999 amendment to section 
8(d) of the Act. If a cranberry order is in effect, the amendment 
authorizes the Secretary to require persons engaged in the handling or 
importation of fresh cranberries or cranberry products (including 
producer-handlers, second handlers, processors, brokers and importers) 
to provide to the USDA certain information including information on 
sales, acquisitions, and inventories of fresh cranberries or cranberry 
products. Under the provisions of proposed Part 926, such persons would 
include handlers, producer-handlers, processors, brokers, and 
importers. Under the proposal, the Committee would collect such 
information.
    According to the Committee, the number of end users of cranberries 
and cranberry products has increased in recent years. This has 
increased the number of entities in the marketing chain acquiring, 
selling, and maintaining inventories of cranberries and cranberry 
products produced domestically and outside the United States. 
Significant quantities of cranberries and cranberry products are now 
being marketed by handlers, producer-handlers, processors, importers, 
brokers, and others not subject to the reporting requirements of the 
cranberry marketing order (7 CFR Part 929). The cranberry marketing 
order authorizes the Committee to obtain information on sales, 
acquisitions, and inventories of cranberries and cranberry products 
from handlers regulated under the order. Such handlers are those who 
can, freeze, or dehydrate cranberries produced within the production 
area, or who sell, consign, deliver, transport (except as a common or 
contract carrier of cranberries owned by another person) fresh 
cranberries or in any other way place fresh cranberries in the current 
of commerce within the production area or between the production area 
and any point outside thereof in the United States and Canada.
    Prior to the 1999 amendment of the Act, the Committee and USDA did 
not have the authority to obtain information from entities not subject 
to the reporting requirements of the order. The 1999

[[Page 19119]]

amendment provides authority for USDA to expand the Committee's 
information gathering capability. With more complete information, the 
Committee would be able to make better-informed regulation 
recommendations to USDA. The Committee would also publish periodic 
reports aggregating the data on cranberry and cranberry products for 
use by all members of the industry.
    Prior to the mid-1990's, the majority of cranberry inventories were 
held by handlers subject to the order, and the Committee was able to 
account for practically all of the cranberry and cranberry product 
inventory under the order. Under Sec.  929.9 of the order, the term 
handler is defined as any person who handles cranberries. Handle means 
to sell, consign, deliver or transport (except as a common or contract 
carrier of cranberries owned by another person) fresh cranberries or in 
any other way to place fresh cranberries in the current of commerce 
within the production area and any point outside thereof in the United 
States or Canada (7 CFR 929.10). However, with increased domestic 
production and imports of cranberries, the number of entities not 
regulated under the Federal cranberry marketing order has expanded to 
include handlers, producer-handlers, processors, brokers, and importers 
who are not subject to the mandatory reporting requirements of the 
cranberry marketing order. Therefore, the Committee does not have 
complete information on sales, acquisitions and inventories of 
cranberries. Allowing the Committee to collect this information will 
help it make better informed regulation recommendations to USDA.
    Section 929.46 of the cranberry marketing order requires the 
Committee to develop a marketing policy each year prior to May 1. 
Currently, in its marketing policy discussions, the Committee projects 
expected supply and market conditions for an upcoming season, based on 
information provided by growers and, particularly, handlers who are 
regulated under the order. These projections include an estimate of the 
marketable quantity (defined as the number of pounds of cranberries 
needed to meet total market demand and to provide for an adequate 
carryover into the next season). The Committee believes that its 
marketing policy is limited in some respects because it does not have 
the ability to include sales, acquisitions, and inventory reports from 
all segments of the cranberry industry.
    Increased production, stagnant demand, and high inventory levels 
have compounded the problem of unreported inventories. With increased 
production and stagnant markets, the industry is producing far more 
cranberries than needed for current market needs. This situation has 
led to higher inventory levels. However, the Committee's inability to 
obtain needed information on cranberry sales, acquisitions, and 
inventories from entities not regulated under the marketing order has 
prevented it from obtaining complete information from all segments of 
the industry. With understated sales, acquisition, and inventory 
information, the Committee has been limited somewhat in making 
recommendations under the marketing order.
    The ability to closely monitor levels of sales, acquisitions, and 
inventory is critical to the Committee in making more thorough 
recommendations. The 1999 amendment to the Act provides a means for 
collecting this information.
    Section 8(d)(3) of the amended Act specifies that if an order is in 
effect with respect to cranberries, USDA may require persons engaged in 
the handling or importation of cranberries or cranberry products 
(including handlers, producer-handlers, processors, brokers, and 
importers) to provide such information as USDA considers necessary to 
effectuate the declared policy of the Act (which is to promote orderly 
marketing conditions and improve returns to producers), including 
information on acquisitions, inventories, and dispositions of 
cranberries and cranberry products. The amendment allows USDA to 
delegate to the Committee the authority to collect sales, acquisition, 
and inventory data from persons, other than regulated handlers under 
the marketing order, engaged in the handling or importation of 
cranberries. Under this proposal, the Committee would collect such 
information. Typically, marketing order committees collect information 
and require record keeping to ensure that USDA can verify handler 
reports. Additionally, the Committee also compiles collected 
information in its aggregate form to use when discussing cranberry 
supplies, inventories, and market strategies during its marketing 
policy discussions. This proposed rule would assist the Committee in 
making more informed marketing recommendations.
    A new part 926 would be added to the regulations to authorize the 
Committee to collect data from such entities. New part 926 would define 
terms and establish rules and regulations relative to the reporting and 
recordkeeping requirements necessary to effectuate the declared policy 
of the Act.
    Several examples are listed below as to how data collection 
currently is conducted under the marketing order and how it would 
operate under the new data collection process. For instance, a grower 
harvests and delivers cranberries to a handler regulated under the 
cranberry marketing order. The regulated handler sells the cranberries 
to a processor. The regulated handler reports to the Committee the 
name, address, and amount of cranberries sold to the processor on a 
Handler Inventory Report--Supplement Form (HIR-SUP), and that completes 
the current marketing order data collection process. Under the proposed 
new data collection process, the Committee, noting information used 
from marketing order reports to identify newly regulated entities, 
would send a report form (Handler/Processor Cranberry Inventory Report 
Form; HPCIR A-D) to the processor. The processor would complete the 
form by indicating names, sources, and amounts of domestic/foreign 
barrels of cranberries acquired, domestic/foreign sales, and beginning 
and ending inventories of cranberries (in freezers and in processed 
form, including concentrate) and submit the report form to the 
Committee.
    In another example, a regulated handler sells cranberries to a 
broker. The broker sells the cranberries to three processors. The 
Committee would receive the initial information (barrels acquired, 
sold, and in inventory) from the regulated handler and that ends the 
current marketing order data collection process. Under the proposed 
data collection process, the Committee would also contact and send a 
report form (Importer Cranberry Inventory Report; Form ICIR A-D) to the 
broker to track the cranberries to the three processors. This form 
would be filed by a broker and provide the Committee with names, 
sources, and amounts of cranberry barrels acquired, amount sold to and 
received by the broker, processor and handler, and the beginning and 
ending inventories of cranberries (in freezers and in processed form, 
including concentrate) held by the broker. After receiving the broker's 
report, the Committee would send a Handler/Processor Cranberry 
Inventory Report Form to each of the three processors to complete and 
return to the Committee.
    In a third example, a non-regulated handler acquires cranberries 
(imports or domestically produced cranberries from a non-marketing 
order production area). The non-regulated handler is outside the scope 
of the marketing order and thus, not required to report to the 
Committee under the current marketing order reporting process. However, 
through the information supplied from other producer-handlers, 
importers,

[[Page 19120]]

processors and brokers, the Committee might be able to identify the 
non-regulated handler and send him/her a Handler/Processor Cranberry 
Inventory Report Form. The non-regulated handler would complete the 
form by indicating names, sources, and amounts of domestic/foreign 
barrels of cranberries acquired, foreign/domestic sales, and beginning 
and ending inventories of cranberries (in freezers and in processed 
form, including concentrate) and submit the report form to the 
Committee.
    In the last example, a broker imports cranberries into the United 
States. The broker is outside the scope of the marketing order and not 
a regulated handler. Thus, there is no mandatory reporting or 
recordkeeping requirements that he/she would have to meet. Under the 
proposed data collection requirements, the importer would be required 
to submit quarterly reports (on an Importer Cranberry Inventory Report 
Form CIR A-D) to the Committee. This form is to be filed by an importer 
to provide the Committee with names, sources and amounts of cranberry 
barrels imported, amounts sold to and received by the broker, processor 
and handler, and the beginning and ending inventories of cranberries 
(in freezers and in processed form, including concentrate) held by the 
importer. Once that information is obtained, the Committee can contact 
the individuals/firms receiving the imported cranberries and have them 
report on the distribution.
    All of these reports would be on the same reporting cycle (4 times 
a year or quarterly) as regulated handlers under the marketing order. 
Handlers, producer-handlers, processors, brokers, and importers would 
report any/all cranberry transactions that occurred during each of the 
reporting cycles. The purpose of this action is to provide the 
Committee with the ability to account for cranberries in the marketing 
pipeline after they have been sold by the regulated handler or if 
imported, brought into the United States.
    All cranberries and cranberry products would be covered. This would 
include fresh cranberries, frozen cranberries, and cranberry 
concentrate. Currently, if a handler regulated under the order has 
juice, sauce or other finished cranberry products in inventory, the 
handler is required to determine the barrel equivalency of cranberries 
contained in those products and report this as inventory. Handlers, 
producer-handlers, processors, brokers, and importers would be required 
to do the same.
    Data collection requirements would not apply once fresh cranberries 
or cranberry products reached retail markets. For example, a regulated 
handler (handler A), sells concentrate to processor B. Processor B uses 
the concentrate to bottle private label juice. The product is shipped 
to a wholesale/retail distribution center. The Committee would receive 
an initial report from handler A and subsequently from processor B. 
Processor B would continue to file reports for each cycle that the 
concentrate and cranberry products remained in his/her possession. The 
reporting requirement would extend up to, but not include, the retailer 
level.
    Failure on the part of handlers, producer-handlers, processors, 
brokers, and importers to comply with the proposed data collection and 
recordkeeping requirements could lead to enforcement action, including 
the levying of penalties provided under 8c(14) of Act against the 
violating person or entity. False representation to an agency of the 
United States in any matter, knowing it to be false, is a violation of 
18 U.S.C. 1001 which provides for a fine or imprisonment or both.

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 proposed rule 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.
    Small agricultural service firms have been defined by the Small 
Business Administration [13 CFR 121.201] as those having annual 
receipts less than $5,000,000, and small agricultural producers are 
those with annual receipts of less than $750,000. There are about 20 
handlers currently regulated under marketing order No. 929. In 
addition, there are about 1,250 producers of cranberries in the 
production area. Based on recent years' price and sales levels, AMS 
finds that nearly all of the cranberry producers and some of the 
handlers are considered small under the SBA definition.
    In 2003, a total of 39,400 acres were harvested with an average 
U.S. yield per acre of 155.1 barrels. Grower prices in 2003 averaged 
$31.80 per barrel. Average total annual grower receipts for 2003 are 
estimated at $155,203 per grower. Of the 1,250 cranberry producers in 
the marketing order production area, between 86 and 95 percent are 
estimated to have sales equal to or less than $750,000. Few growers are 
estimated to have sales that would have exceeded this threshold in 
recent years.
    Under the marketing order, five handlers handle over 97 percent of 
the cranberry crop. Using Committee data on volumes handled, AMS has 
determined that none of these handlers qualify as small businesses 
under SBA's definition. The remainder of the crop in the marketing 
order production area is marketed by about a dozen producer-handlers 
who handle their own crops. Dividing the remaining 3 percent of the 
crop by these producer-handlers, all would be considered small 
businesses.
    Cranberries are produced in 10 States under Marketing Order No. 
929, but the vast majority of farms and production is concentrated in 
Massachusetts, New Jersey, Oregon, Washington, and Wisconsin. Average 
farm size for cranberry production is very small. The average across 
all producing States is about 33 acres. Wisconsin's average is twice 
the U.S. average at 66.5 acres, and New Jersey averages 83 acres. 
Average farm size is below the U.S. average for Massachusetts (25 
acres), Oregon (17 acres) and Washington (14 acres).
    Small cranberry growers dominate in all States: 84 percent of 
growers in Massachusetts harvest 10,000 or fewer barrels of 
cranberries, while another 3.8 percent harvest fewer than 25,000 
barrels. In New Jersey, 62 percent of growers harvest less than 10,000 
barrels, and 10 percent harvest between 10,000 and 25,000 barrels. More 
than half of Wisconsin growers raise less than 10,000 barrels, while 
another 29 percent produce between 10,000 and 25,000 barrels. Similar 
production patterns exist in Washington and Oregon. Over 90 percent of 
the cranberry crop is processed, with the remainder sold as fresh 
fruit.
    According to the National Agricultural Statistics Service (NASS), 
the 2003 overall U.S. cranberry crop totaled 6.1 million barrels (1 
barrel equals 100 pounds of cranberries). Total barrels of cranberry 
imports acquired were 1.06 million pounds. The U.S. 2003 preliminary 
price for fresh and processed cranberries was $50.90 and $30.60 per 
barrel respectively.
    Under Part 926, as proposed, the Committee estimates that there are 
approximately 130 handlers, producer-handlers, processors, brokers, and 
importers who would be subject to the data collection requirements. 
Taking into account the profile of the size of the industry under the 
marketing order, we estimate that most of these entities would be 
considered small under the

[[Page 19121]]

SBA criteria. In order to gather the most accurate information 
possible, this proposal specifically invites comments on the number and 
size of those entities. Comments should be sent to USDA in care of the 
Docket Clerk at the previously mentioned address.
    Public Law 106-78, enacted October 22, 1999, amended section 608(d) 
of the Act to authorize USDA to require persons engaged in the handling 
of cranberries or cranberry products (including handlers, producer-
handlers, processors, brokers, and importers) not subject to the order 
to maintain adequate records and report sales, acquisitions, and 
inventory information. The data collection and reporting requirements 
would help the Committee make more informed recommendations to USDA for 
regulations authorized under the cranberry marketing order.
    This proposed rule would implement the reporting and recordkeeping 
requirements authorized by the amendment to the Act. Under the 
regulations, handlers, producer-handlers, processors, brokers, and 
importers would be required to submit reports four times annually 
regarding sales, acquisitions, movement for further processing and 
disposition of cranberries and cranberry products. It is estimated that 
it would take each person or entity approximately 20 minutes to 
complete each form. One of these forms, (Importer Cranberry Inventory 
Report Form; Form ICIR A-D) directs importers and brokers to indicate 
the name, address, variety acquired, amount sold to and received by 
brokers, processors, and handlers, and the beginning and ending 
inventories of cranberries held by the importer. The second form, 
(Handler/Processor Cranberry Inventory Report Form; Form HPCIR A-D) 
directs handlers, producer-handlers, and processors to indicate the 
name, address, variety acquired, domestic/foreign sales, acquisitions, 
and beginning and ending inventories.
    These forms were designed to capture the type of information the 
Committee needs on inventory and sales data for the entire cranberry 
industry. If all of the entities complete each form, it is estimated 
that the total annual burden on the respondents would be 1 hour and 20 
minutes or a total of 174.66 hours. The regulations would also require 
the retention of information for a total of three years. Such reporting 
and recordkeeping requirements, including the two new forms, will be 
submitted to the Office of Management and Budget (OMB) for approval 
under the Paperwork Reduction Act of 1995 [44 U.S.C. Chapter 35] and 
will not be implemented until they have been approved.
    For the purposes of checking and verifying reports filed under the 
regulations hereinafter proposed, provisions are included which would 
allow USDA or the Committee, through duly authorized agents, to have 
access to any premises where cranberries and cranberry products may be 
held. Authorized agents, at any time during regular business hours, 
would be permitted to inspect any cranberries and cranberry products 
held and any and all records with respect to the acquisition, holding 
or disposition of any cranberries and cranberry products which may be 
held or which may have been disposed of by that entity. All reports and 
records furnished or submitted by handlers, producer-handlers, 
processors, brokers, and importers to the Committee which include data 
or information constituting a trade secret or disclosing the trade 
position or financial condition, or business operations from whom 
received, would be in the custody and control of the authorized agents 
of the Committee, who would disclose such information to no person 
other than USDA.
    Failure on the part of handlers, producer-handlers, processors, 
brokers, and importers to comply with the proposed data collection and 
recordkeeping requirements could lead to enforcement action, including 
the levying of fines against the violating person or entity. Any 
violation of this regulation would be subject to a penalty levied under 
8c(14) of the Act. False representation to an agency of the United 
States in any matter, knowing it to be false, is a violation of 18 
U.S.C. 1001 which provides for a fine or imprisonment or both.
    The proposed reporting requirements should help the entire 
cranberry industry. While this proposed rule would increase reporting 
and recordkeeping requirements on affected entities, the benefits of 
this proposal, however, could be substantial. By implementing this 
proposed rule, the Committee would have access to more complete 
acquisition, sales, and inventory data and be able to make 
recommendations based on more detailed information. This, in turn, 
could lead to more effective marketing decisions and higher returns for 
producers and non-regulated entities.
    The Committee discussed alternatives to this action, including 
continuing to ask those entities not subject to the marketing order to 
voluntarily submit inventory data to the Committee. This has not been 
successful. To make well informed regulatory decisions, the Committee 
needs complete inventory, sales and acquisition information from 
handlers, producer-handlers, processors, brokers, and importers who 
handle cranberries and cranberry products produced in the United States 
and outside the United States. This proposed rule would establish 
reporting and recordkeeping requirements.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this proposed rule. While the proposed data 
collection and reporting requirements are similar to those reporting 
requirements regulated handlers must comply with under the cranberry 
marketing order, this action is necessary to assist the Committee in 
its volume regulation recommendations.
    Finally, interested persons are invited to submit information on 
the economic and informational impacts of this action on small and 
large 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.
    A 60-day comment period is provided to allow interested persons the 
opportunity to respond to this proposal. All written comments timely 
received will be considered before a final rule is issued on this 
matter.
    This action requires a collection of information. These information 
collection requirements are discussed in the following section.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), this notice announces that AMS is seeking approval for a 
new information collection request for proposed data collection and 
reporting requirements applicable to cranberries not subject to the 
cranberry marketing order. The new requirements would be established in 
7 CFR Part 926.
    Title: Data Collection Requirements Applicable to Cranberries Not 
Subject to the Cranberry Marketing Order, 7 CFR Part 926.
    OMB Number: 0581-New.
    Type of Request: New collection.
    Abstract: A Federal marketing order for cranberries (M.O. 929) 
regulates the handling of cranberries grown in 10 States and is 
applicable to regulated handlers under the order. Public Law 106-78, 
enacted October 22, 1999, amended section 8(d) of the Act. If a 
cranberry order is in effect, the

[[Page 19122]]

amendment authorizes the Secretary to require persons engaged in the 
handling or importation of cranberries and cranberry products not 
subject to the reporting requirements of the Federal cranberry 
marketing order to maintain adequate records and report information on 
sales, acquisitions, and inventory information to USDA or the 
Committee. Such persons would include handlers, producer-handlers, 
processors, brokers, and importers. The Cranberry Marketing Order 
Committee would collect this information. The data collection and 
reporting requirements would help the Committee make more informed 
recommendations to USDA for regulations authorized under the cranberry 
marketing order. The forms for OMB No. 0581-NEW proposed in the 
information collection rulemaking are as follows:

Importer Cranberry Inventory Report Form, (ICIR A-D)

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 20 minutes per response.
    Respondents: Cranberry importers and brokers who acquire and sell 
cranberries and cranberry products, and maintain inventories of 
cranberries and products. The information would cover the 12-month 
period beginning September 1 and ending August 31.
    Estimated Number of Respondents: 6.
    Estimated Number of Responses per Respondent: 4.
    Estimated Total Annual Burden on Respondents: 8 hours.

Handler/Processor Cranberry Inventory Report Form (HPCIR A-D)

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 20 minutes per response.
    Respondents: Handlers, producer-handlers, and processors not 
subject to the cranberry marketing order who produce, handle, acquire, 
sell and maintain beginning and ending inventories of cranberries and 
cranberry products. The information would cover the 12-month period 
beginning September 1 and ending August 31.
    Estimated Number of Respondents: 125.
    Estimated Number of Responses per Respondent: 4.
    Estimated Total Annual Burden on Respondents: 166.66 hours.
    Comments: Comments are invited on: (1) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (2) the accuracy of the agency's estimate of 
the burden of the proposed collection of information, including the 
validity of the methodology and assumptions used; (3) ways to enhance 
the quality , utility, and clarity of the information collected; and 
(4) ways to minimize the burden collection of the information on those 
who are to respond, including the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    Comments should reference OMB No. 0581-NEW and the proposed data 
collection and reporting requirements applicable to cranberries not 
subject to the cranberry marketing order, and be sent to USDA in care 
of the Docket Clerk at the previously mentioned address. All comments 
received will be available for public inspection during regular 
business hours at the same address.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments will also become a matter of 
public record.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal.

List of Subjects in 7 CFR Part 926

    Cranberries and cranberry products, Reporting and recordkeeping 
requirements.
    For the reasons set forth in the preamble, it is proposed that 
Chapter IX of Title 7 of the Code of Federal Regulations be amended by 
adding Part 926 to read as follows:

PART 926--DATA COLLECTION REQUIREMENTS APPLICABLE TO CRANBERRIES 
NOT SUBJECT TO THE CRANBERRY MARKETING ORDER [7 CFR PART 929]

Sec.
926.1 Secretary.
926.2 Act.
926.3 Person.
926.4 Cranberries.
926.5 Fiscal period.
926.6 Committee.
926.7 Producer.
926.8 Handler.
926.9 Handle.
926.10 Acquire.
926.11 Processed cranberries or cranberry products.
926.12 Producer-handler.
926.13 Processor.
926.14 Broker.
926.15 Importer.
926.16 Reports.
926.17 Reporting requirements.
926.18 Records.
926.19 Confidential information.
926.20 Verification of reports and records.
926.21 Suspension or termination.

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


Sec.  926.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States 
or any officer or employee of the United States Department of 
Agriculture who is, or who may hereafter be authorized to act in her/
his stead.


Sec.  926.2  Act.

    Act means Public Act No. 10, 73d Congress [May 12, 1933], as 
amended, and as reenacted and amended by the Agricultural Marketing 
Agreement Act of 1937, as amended (Secs.1-19, 48 Stat.31, as amended; 7 
U.S.C. 601 et seq.).


Sec.  926.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.


Sec.  926.4  Cranberries.

    Cranberries means all varieties of the fruit Vaccinium Macrocarpon 
and Vaccinium oxycoccus, known as cranberries.


Sec.  926.5  Fiscal period.

    Fiscal period is synonymous with fiscal year and crop year and 
means the 12-month period beginning September 1 and ending August 31 of 
the following year.


Sec.  926.6  Committee.

    Committee means the Cranberry Marketing Committee, which is hereby 
authorized by USDA to collect information on sales, acquisitions, and 
inventories of cranberries and cranberry products under this part. The 
Committee is established pursuant to the Federal cranberry marketing 
order regulating the handling of cranberries grown in the States of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York (7 CFR part 929).


Sec.  926.7  Producer.

    Producer is synonymous with grower and means any person who 
produces cranberries for market and has a proprietary interest therein.


Sec.  926.8  Handler.

    Handler means any person who handles cranberries and is not subject 
to the reporting requirements of 7 CFR part 929.


Sec.  926.9  Handle.

    Handle means to can, freeze, dehydrate, acquire, sell, consign, 
deliver, or transport (except as a common or contract carrier of 
cranberries owned by another person) fresh or processed cranberries 
produced

[[Page 19123]]

within or outside the United States or in any other way to place fresh 
or processed cranberries into the current of commerce within or outside 
the United States. This term includes all initial and subsequent 
handling of cranberries or processed cranberries up to, but not 
including, the retail level.


Sec.  926.10  Acquire.

    Acquire means to obtain cranberries by any means whatsoever for the 
purpose of handling cranberries.


Sec.  926.11  Processed cranberries or cranberry products.

    Processed cranberries or cranberry products means cranberries which 
have been converted from fresh cranberries into canned, frozen, or 
dehydrated cranberries or other cranberry products by any commercial 
process.


Sec.  926.12  Producer-handler.

    Producer-handler means any person who is a producer of cranberries 
for market and handles such cranberries.


Sec.  926.13  Processor.

    Processor means any person who receives or acquires fresh or frozen 
cranberries or cranberries in the form of concentrate from handlers, 
producer-handlers, importers, brokers or other processors and uses such 
cranberries or concentrate, with or without other ingredients, in the 
production of a product for market.


Sec.  926.14  Broker.

    Broker means any person who acts as an agent of the buyer or seller 
and negotiates the sale or purchase of cranberries or cranberry 
products.


Sec.  926.15  Importer.

    Importer means any person who causes cranberries or cranberry 
products produced outside the United States to be brought into the 
United States with the intent of entering the cranberries or cranberry 
products into the current of commerce.


Sec.  926.16  Reports.

    (a) Each handler, producer-handler, processor, broker, and importer 
engaged in handling or importing cranberries or cranberry products who 
is not subject to the reporting requirements of the Federal cranberry 
marketing order, (7 CFR part 926) shall, in accordance with Sec.  
926.17, file promptly with the Committee reports of sales, 
acquisitions, and inventory information on fresh cranberries and 
cranberry products using forms supplied by the Committee.
    (b) Upon the request of the Committee, with the approval of the 
Secretary, each handler, producer-handler, processor, broker, and 
importer engaged in handling or importing cranberries or cranberry 
products who is not subject to the Federal cranberry marketing order (7 
CFR part 926) shall furnish to the Committee such other information 
with respect to fresh cranberries and cranberry products acquired and 
disposed of by such entity as may be necessary to meet the objectives 
of the Act.


Sec.  926.17  Reporting requirements.

    Handlers, producer-handlers, importers, processors, and brokers not 
subject to the Federal cranberry marketing order (7 CFR part 926) shall 
be required to submit four times annually, for each fiscal period 
reports regarding sales, acquisitions, movement for further processing, 
and dispositions of fresh cranberries and cranberry products using 
forms supplied by the Committee. An Importer Cranberry Inventory Report 
Form shall be required to be completed by importers and brokers. This 
report shall indicate the name, address, variety acquired, the amount 
sold to and received by brokers, processors, and handlers, and the 
beginning and ending inventories of cranberries held by the importer 
for each applicable fiscal period. A Handler/Processor Cranberry 
Inventory Report Form shall be completed by handlers, producer-
handlers, and processors and shall indicate the name, address, variety 
acquired, domestic/foreign sales, acquisitions, and beginning and 
ending inventories.


Sec.  926.18  Records.

    Each handler, producer-handler, processor, broker, and importer 
shall maintain such records of all fresh cranberries and cranberry 
products acquired, imported, handled, withheld from handling, and 
otherwise disposed of during the fiscal period to substantiate the 
required reports. All such records shall be maintained for not less 
than three years after the termination of the fiscal year in which the 
transactions occurred or for such lesser period as the Committee may 
direct.


Sec.  926.19  Confidential information.

    All reports and records furnished or submitted pursuant to this 
part which include data or information constituting a trade secret or 
disclosing the trade position or financial condition, or business 
operations from whom received, shall be in the custody and control of 
the authorized agents of the Committee, who shall disclose such 
information to no person other than the Secretary.


Sec.  926.20  Verification of reports and records.

    For the purpose of assuring compliance and checking and verifying 
records and reports required to be filed by handlers, producer-
handlers, processors, brokers, and importers, USDA or the Committee, 
through its duly authorized agents, shall have access to any premises 
where applicable records are maintained, where cranberries and 
cranberry products are received, acquired, stored, handled, and 
otherwise disposed of and, at any time during reasonable business 
hours, shall be permitted to inspect such handler, producer-handler, 
processor, broker, and importer premises, and any and all records of 
such handlers, producer-handlers, processors, brokers, and importers. 
The Committee's authorized agents shall be the manager of the Committee 
and other staff under the supervision of the Committee manager.


Sec.  926.21  Suspension or termination.

    The provisions of this part shall be suspended or terminated 
whenever there is no longer a Federal cranberry marketing order in 
effect.

    Dated: April 6, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-8212 Filed 4-9-04; 8:45 am]
BILLING CODE 3410-02-P