[Federal Register Volume 74, Number 147 (Monday, August 3, 2009)]
[Rules and Regulations]
[Pages 38323-38324]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18414]



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 Rules and Regulations
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  Federal Register / Vol. 74, No. 147 / Monday, August 3, 2009 / Rules 
and Regulations  

[[Page 38323]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 925 and 944

[Doc. No. AMS-FV-08-0106; FV09-925-1 FIR]


Grapes Grown in a Designated Area of Southeastern California and 
Imported Table Grapes; Relaxation of Handling Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim final rule as 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 relaxed the handling 
requirements prescribed under the California table grape marketing 
order (order) and the table grape import regulation. The interim final 
rule relaxed the minimum bunch size requirement for the 2009 season for 
grapes packed in containers holding 2 pounds net weight or less. Under 
the relaxation, up to 20 percent of the weight of such containers may 
consist of single clusters weighing less than one quarter pound, but 
with at least five berries each. The interim final rule was necessary 
to provide California desert grape handlers and importers the 
flexibility to respond to a marketing opportunity on a test basis for 
one season to meet consumer needs.

DATES: Effective Dates: Effective August 4, 2009.

FOR FURTHER INFORMATION CONTACT: Jennifer Robinson, Marketing 
Specialist, or Kurt J. Kimmel, Regional Manager, California Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 
487-5906, or E-mail: [email protected] or 
[email protected].
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide; or 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 Order 
No. 925, as amended (7 CFR part 925), regulating the handling of grapes 
grown in a designated area of southeastern 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.''
    This rule is also issued under section 8e of the Act, which 
provides that whenever certain specified commodities, including table 
grapes, are regulated under a Federal marketing order, imports of these 
commodities into the United States are prohibited unless they meet the 
same or comparable grade, size, quality, or maturity requirements as 
those in effect for the domestically produced commodities.
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    The shipping of table grapes produced in a designated area of 
southeastern California is regulated by 7 CFR part 925. The regulations 
specify that bunches of grapes must weigh a minimum of one quarter 
pound to meet the requirements of U.S. No. 1 Table grade. In response 
to a marketing opportunity, the industry is experimenting with a new 
container during the 2009 season. The experimental container's small 
capacity makes it difficult to completely fill with grape bunches of 
one quarter pound or larger. Therefore, for the 2009 season, the 
minimum bunch size requirement was relaxed for U.S. No. 1 table grapes 
packed in these containers.
    Imported table grapes are subject to regulations specified in 7 CFR 
part 944. Under those regulations, imported grapes must meet the same 
minimum size requirements as specified for domestic grapes under the 
order. Therefore, the minimum bunch size requirement was also relaxed 
for imported grapes packed in the experimental containers during in the 
2009 season.
    In an interim final rule published in the Federal Register on March 
17, 2009, and effective on March 20, 2009 (74 FR 11275, Doc. No AMS-FV-
08-0106, FV09-925-1 IFR), Sec. Sec.  925.304 and 944.503 were amended 
by relaxing the one-quarter pound minimum bunch size requirement for 
the 2009 season for U.S. No. 1 Table grade grapes packed in small 
consumer packages containing 2 pounds net weight or less. Under the 
relaxation, up to 20 percent of the weight of each clamshell container 
(individual consumer packages) may consist of single clusters weighing 
less than one-quarter pound, but with at least five berries each.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule 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.
    There are approximately 14 handlers of southeastern California 
grapes who are subject to regulation under the order and about 50 grape 
producers in the production area. In addition, there are approximately 
123 importers of grapes. Small agricultural service firms are defined 
by the Small Business Administration (SBA) (13 CFR 121.201) as those 
having annual receipts of less than $7,000,000, and small agricultural 
producers are defined as those whose annual receipts are less than 
$750,000. Nine of the 14 handlers subject to

[[Page 38324]]

regulation have annual grape sales of less than $7,000,000. Based on 
data from the National Agricultural Statistics Service and the 
committee, the average crop value for 2008 is about $53,040,000. 
Dividing this figure by the number of producers (50) yields an average 
annual producer revenue estimate of about $1,060,800, which is above 
the SBA threshold of $750,000. Based on the foregoing, it may be 
concluded that a majority of grape handlers and none of the producers 
may be classified as small entities. The average importer receives $2.8 
million in revenue from the sale of grapes. Therefore, it may be 
concluded that the majority of importers may be classified as small 
entities.
    This rule continues in effect the action that revised Sec.  
925.304(a) of the rules and regulations of the California desert grape 
order and Sec.  944.503(a)(1) of the table grape import regulation. 
This rule continues in effect the action that relaxed the one-quarter 
pound minimum bunch size requirement for the 2009 season for U.S. No. 1 
Table grade grapes packed in small consumer packages containing 2 
pounds net weight or less. Under the relaxation, up to 20 percent of 
the weight of each clamshell container may consist of single clusters 
weighing less than one-quarter pound, but with at least five berries 
each. Authority for the change to the California desert grape order is 
provided in Sec. Sec.  925.52(a)(1) and 925.53. Authority for the 
change to the table grape import regulation is provided in section 8e 
the Act.
    There is general agreement in the industry for the need to relax 
the minimum bunch size requirement for grapes packed in clamshells to 
allow for more packaging options, as noted in the interim final rule. 
An alternative discussed by the committee was to relax the minimum 
bunch size requirement for U.S. No. 1 Table grade grapes packed in 
clamshells containing net weights of 2, 3, and 4 pounds. The committee 
decided that there is not a problem with clamshells containing net 
weights of 3 and 4 pounds meeting the minimum requirements at this 
time. Ultimately, the committee unanimously agreed that the relaxation 
for grapes packed in clamshells containing 2 pounds net weight or less 
was appropriate as a test for one season.
    Regarding the impact of this rule on affected entities, this rule 
provides both California desert grape handlers and importers the 
flexibility to respond to a marketing opportunity on a test basis for 
one season to meet customer demands and consumer needs. Handlers and 
importers will be able to provide buyers in the retail sector more 
packaging choices. The relaxation may result in increased shipments of 
consumer-sized grape packs, which would have a positive impact on 
producers, handlers, and importers.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large grape handlers or importers. 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.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap or conflict with this rule.
    Further, the committee's meeting was widely publicized throughout 
the grape industry and all interested persons were invited to attend 
the meeting and participate in committee deliberations. Like all 
committee meetings, the November 14, 2008, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue. Also, the World Trade Organization, the Chilean 
Technical Barriers to Trade inquiry point for notifications under the 
U.S.-Chile Free Trade Agreement, the embassies of Argentina, Brazil, 
Canada, Chile, Italy, Mexico, Peru, and South Africa, and known grape 
importers were notified of this action.
    Comments on the interim final rule were required to be received on 
or before May 18, 2009. No comments were received. Therefore, for the 
reasons given in the interim final rule, we are adopting the interim 
final rule as a final rule, without change.
    To view the interim final rule, go to: http://www.regulations.gov/fdmspublic/component/main?main=DocketDetail&d=AMS-FV-08-0106.
    This action also affirms information contained in the interim final 
rule concerning Executive Orders 12866 and 12988, the Paperwork 
Reduction Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 U.S.C. 
101).
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this rule.
    After consideration of all relevant material presented, it is found 
that finalizing the interim final rule, without change, as published in 
the Federal Register (74 FR 11275, March 17, 2009) will tend to 
effectuate the declared policy of the Act.

List of Subjects

7 CFR Part 925

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

7 CFR Part 944

    Avocados, Food grades and standards, Grapefruit, Grapes, Imports, 
Kiwifruit, Limes, Olives, Oranges.

PARTS 925 AND 944--[AMENDED]

0
Accordingly, the interim final rule that amended 7 CFR parts 925 and 
944 and that was published at 74 FR 11275 on March 17, 2009, is adopted 
as a final rule, without change.

    Dated: July 28, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-18414 Filed 7-31-09; 8:45 am]
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