[Federal Register Volume 72, Number 206 (Thursday, October 25, 2007)]
[Proposed Rules]
[Pages 60588-60589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-5266]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 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.
 
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 

  Federal Register / Vol. 72, No. 206 / Thursday, October 25, 2007 / 
Proposed Rules  

[[Page 60588]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 925 and 944

[Docket No. AMS-FV-06-0184; FV03-925-1 PR]


Grapes Grown in a Designated Area of Southeastern California and 
Imported Table Grapes; Change in Regulatory Periods

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Reopening of comment period.

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SUMMARY: Notice is hereby given that the comment period on proposed 
changes to the regulatory period when minimum grade, size, quality, and 
maturity requirements apply to southeastern California grapes under 
Marketing Order No. 925 (order) and to imported grapes under the table 
grape import regulation is reopened. The original proposed rule 
regarding this matter was published in the Federal Register on May 25, 
2005 (70 FR 30001), and cited statistical information through the 2004 
shipping season. The Agricultural Marketing Service (AMS) is now 
considering updated statistical information for the 2005 through 2007 
shipping seasons. AMS hereby invites comments on the updated 
statistical information contained herein, as it pertains to the 
proposed rule to change the regulatory period.

DATES: Comments must be received by November 26, 2007.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments should 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 Internet: http://www.regulations.gov. All comments should reference the docket number 
and the date and page number of this issue and the May 25, 2005, issue 
of the Federal Register and will be available for public inspection in 
the office of the Docket Clerk during regular business hours, or can be 
viewed at: http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Jennifer Garcia, Marketing Specialist, 
or Kurt Kimmel, Regional Manager, 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 E-mail: 
[email protected] or [email protected].
    Small businesses may request information 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: A proposed rule was issued on May 20, 2005, 
and published in the Federal Register on May 25, 2005 (70 FR 30001) 
that would change the regulatory periods when the minimum grade, size, 
quality, and maturity requirements apply to southeastern California 
grapes under the order and to imported grapes under the table grape 
import regulation. Three notices of extension to the comment period 
were published in the Federal Register on July 25, 2005 (70 FR 42513), 
September 27, 2005 (70 FR 56378), and July 11, 2006 (71 FR 39019).
    Section 8e of the Agricultural Marketing Agreement Act of 1937, as 
amended (AMAA), delineates the requirements whereby the Secretary of 
Agriculture may extend the regulatory period during which marketing 
order regulations are in effect for imports. Those requirements have 
also been included by reference in the proposed rule. One specific 
requirement is that the Secretary consider ``To what extent, during the 
previous year, imports of a commodity that did not meet the 
requirements of a marketing order applicable to such commodity were 
marketed in the United States during the period that such marketing 
order requirements were in effect for available domestic commodities 
(or would have been marketed during such time if not for any additional 
period established by the Secretary).'' That requirement cannot be 
fulfilled, given the current timeline in this rulemaking process, 
without the introduction of evidence from ``the previous year''.
    The proposed rule was published using statistical data up through 
and including the year 2004, which was the most current data available 
at the time. This rule, in addition to reopening the comment period, 
provides updated statistical information that fulfills the requirements 
for the proposed action as required in the Act.
    The type and sources of the statistical information contained 
herein are intended to mirror the statistical evidence cited in the 
proposed rule. USDA believes that the updated statistical information 
for the years 2005 through 2007 continue to support the arguments 
presented in the proposed rule.

Imported Grape Statistics

    The proposed rule cited U.S. Census Bureau statistics for imported 
grape for the years 2000-2003. During that period, an average of 60 
million 18-pound lugs of grapes were imported into the United States. 
Using updated data and compiling the average for the years 2000-2006 
(January through December), approximately 68 million 18-pound lugs of 
grapes were imported into the United States. The two main countries 
exporting to the United States were Chile, with average exports of 51 
million 18-pound lugs (76 percent of the total), and Mexico, with 14 
million 18-pound lugs (21 percent of the total), The remaining three 
percent came from various countries.
    The proposed rule stated, based on 2000-2004 statistics, that the 
greatest percentage of imported Chilean table grapes enter the United 
States through the Port of Philadelphia. This continues to be the case. 
Information from USDA's Market News Service (Market News) for 2000-2007 
shows that the Port of Philadelphia received an average of 20 million 
18-pound lugs of imported Chilean grapes during the February 1 to April 
19 period, with 30 percent (6 million) of these 20 million 18-pound 
lugs arriving between April 1 and April 19. Market News import 
statistics for the 2007 shipping season show that 18.28 million lugs of 
grapes were imported from Chile into Philadelphia from February 1 to 
April 19, with 25 percent

[[Page 60589]]

(4.55 million) arriving between April 1 and April 19. After the April 
20 start of the regulatory period shipments drop off by over 99 
percent.
    The Market News reports also show that weekly shipments of Chilean 
grapes imported into Philadelphia in 2007 mirror the pattern of 
previous years. An average of approximately 3 million 18-pound lugs of 
grapes were imported each week of the season up to the April 20 start 
of regulation. Following the April 20 start date of regulation, weekly 
shipments averaged 70,000 lugs, with shipments ceasing altogether after 
May 31.

Voluntary Inspection Data

    Statistics from the AMS, Fresh Products Branch regarding voluntary 
inspections of imported Chilean grapes were cited in the proposed rule 
to highlight the high failure rates of imported grape inspections on 
product imported from April 1 to April 19 during the years 2000-2004. 
The trend of high failure rates on voluntary inspections continues in 
subsequent years. Voluntary inspections for the 2005-2007 shipping 
seasons indicate that, on average, 82 percent of the voluntary 
inspections conducted on Chilean grapes imported into the Port of 
Philadelphia from April 1 to April 19 failed, indicating that the 
product did not meet minimum U.S. quality standards. The voluntary 
inspections were conducted on an average of 32 percent of the total 
grapes imported during that period, meaning that, on average, at least 
26 percent (82 percent of the 32 percent inspected) of all imports 
failed to meet minimum quality standards during that time frame. With 
68 percent of the imports not subject to any inspection, the percentage 
of substandard grapes entering the U.S. could be much higher that the 
26 percent that is known to have been voluntarily subjected to 
inspection and subsequently failed.
    In 2007 specifically, 28 percent of imported grapes entering the 
country through the Port of Philadelphia were voluntarily inspected. 
The failure rate of those voluntary inspections was 81 percent, which 
mimics the trend highlighted in the proposed rule for years 2000-2004.

Wholesale Market Reports

    The proposed rule cited Market News reports to show that fair, 
ordinary, and poor condition imported table grapes were in the market 
during the month of May in the years 2000-2004 and in June of 2000, 
2001 and 2004. A review of recent reports shows that, similar to 
previous years, fair, ordinary, and poor condition imported grapes were 
in the market in May of 2005-2007 as well.
    In addition, the proposed rule cited Market News reports to 
highlight specific incidences where poor quality imported Chilean 
grapes were present in the Philadelphia, Boston, St. Louis, New York, 
Chicago, and Detroit wholesale markets at dramatically reduced prices 
in May of 2002, 2003, and 2004.
    In 2007, lower quality imported Chilean grapes continued to be 
present in various U.S. wholesale markets. Market news reports for the 
Philadelphia, Boston, Chicago, New York, Baltimore, and Detroit 
wholesale markets for May of 2007 show that ordinary and poor quality 
Chilean grapes were present in the market and that they were available 
at dramatically reduced prices. Those grapes continue to be in direct 
competition with excellent/good quality domestically produced grapes 
subject to marketing order regulation at much higher prices.
    Specifically, Market News reports for the Philadelphia wholesale 
market from May 1 to May 23, 2007, show that imported poor condition 
Chilean Thompson Seedless grapes were present in the market for $1.00 
to $3.00 a lug. Imported poor condition Chilean Red Seedless grapes 
were also in the market from may 15 to May 17, 2007 at $1.00 to $4.00 a 
lug. Additionally, poor condition imported Chilean Black Seedless 
grapes were also selling for $1.00 a lug from May 21 to May 23, 2007. 
Good quality Black Seedless grapes from the production area were sold 
in the same market from May 18 to May 25, 2007 at prices ranging from 
$38 to $40 a lug.
    Market News reports for the Boston wholesale market show that poor 
quality imported Chilean Autumn Royal, Black Seedless, Princess, Red 
Globe, and Thompson Seedless were present at different dates through 
the month of May, 2007, at prices that ranged from $1.00 to $6.00. Good 
quality Black Seedless grapes from the production area were present at 
prices ranging from $38.00 to $40.00.
    The statistical information from the California Table Grape 
Commission Market Activity Reports could not be duplicated for 2007 at 
the time of this rulemaking action.
    USDA is reopening the comment period for an additional 30 days to 
allow interested persons to review and submit written comments on the 
updated statistical information contained in this rule as it pertains 
to the proposed rule. All written comments timely received will be 
considered before a final determination is made on this matter. 
Comments in reference to the proposed rule that have been received 
prior to this action will continue to be considered as well.

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

    Dated: October 18, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 07-5266 Filed 10-24-07; 8:45 am]
BILLING CODE 3410-02-M