[Federal Register Volume 74, Number 177 (Tuesday, September 15, 2009)]
[Rules and Regulations]
[Pages 47047-47048]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22114]



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  Federal Register / Vol. 74, No. 177 / Tuesday, September 15, 2009 / 
Rules and Regulations  

[[Page 47047]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Doc. No. AMS-FV-09-0002; FV09-905-1 FIR]


Oranges, Grapefruit, Tangerines and Tangelos Grown in Florida and 
Imported Grapefruit; Relaxation of Size Requirements for Grapefruit

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 minimum 
size requirement for white seedless grapefruit prescribed under the 
marketing order for oranges, grapefruit, tangerines, and tangelos grown 
in Florida (order) and the grapefruit import regulation. The interim 
final rule relaxed the minimum size requirement for domestic and import 
shipments from 3 \9/16\ inches (size 48) to 3 \5/16\ inches (size 56). 
This change is expected to maximize fresh white seedless grapefruit 
shipments and provide greater flexibility to handlers and importers.

DATES: Effective September 16, 2009.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
or Christian D. Nissen, Regional Manager, Southeast Marketing Field 
Office, Marketing Order Administration Branch, Fruit and Vegetable 
Programs, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 325-8793, 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 
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR 
part 905), regulating the handling of oranges, grapefruit, tangerines, 
and tangelos grown in Florida, 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 
grapefruit, 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 handling of oranges, grapefruit, tangerines, and tangelos grown 
in Florida is regulated by 7 CFR part 905. Prior to this change, the 
minimum size requirement for domestic shipments of white seedless 
grapefruit was 3 \9/16\ inches, while the minimum size requirement for 
export shipments was 3 \5/16\ inches. The more restrictive size 
requirement for domestic shipments was established in response to the 
domestic market preference for larger sized fruit, while the export 
market favored the smaller sized fruit. However, with total shipments 
of white seedless grapefruit declining, handlers need to be able to 
ship fruit to whichever markets become available. Therefore, this rule 
continues in effect the rule that relaxed the minimum size requirement 
for domestic shipments from 3 \9/16\ inches to 3 \5/16\ inches, making 
the minimum size requirement the same for both domestic and export 
markets.
    Imported grapefruit are subject to regulations specified in 7 CFR 
part 944. Under those regulations, imported grapefruit must meet the 
same minimum size requirements as specified for domestic grapefruit 
under the order. Therefore, the minimum size requirement was also 
relaxed from 3\9/16\ inches to 3\5/16\ inches for white seedless 
grapefruit imported into the United States.
    In an interim final rule published in the Federal Register on April 
7, 2009, and effective on April 8, 2009 (74 FR 15641, Doc. No. AMS-FV-
09-0002, FV09-905-1 IFR), Sec. Sec.  905.306 and 944.106 were amended 
by changing the minimum diameter for ``Seedless, except red'' from 3\9/
16\ inches to 3\5/16\ inches.

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 action on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the 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 40 Florida grapefruit handlers subject to 
regulation under the marketing order and about 8,000 citrus producers 
in the production area. There are approximately 10 grapefruit 
importers. Small agricultural service firms, which include grapefruit 
handlers and importers, are defined by the Small Business 
Administration (SBA) 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 (13 CFR 121.201).
    According to industry and Committee data, the average annual f.o.b. 
price for fresh Florida white seedless grapefruit during the 2007-08 
season was $10.30 per \4/5\-bushel carton, and total fresh

[[Page 47048]]

shipments were around 3.3 million cartons. Based on the average f.o.b. 
price, a majority of Florida white seedless grapefruit handlers could 
be considered small businesses under SBA's definition. In addition, 
based on production and grower prices reported by the National 
Agricultural Statistics Service, and the total number of Florida citrus 
producers, the average annual producer revenue is less than $750,000. 
Information from the Foreign Agricultural Service, USDA, indicates that 
the dollar value of imported fresh grapefruit ranged from approximately 
$2.14 million in 2006 to $2.06 million in 2008. Using these values, all 
importers would have annual receipts of less than $7 million for 
grapefruit. Therefore, the majority of handlers, producers and 
importers of white seedless grapefruit may be classified as small 
entities.
    This rule continues in effect the action that relaxed the minimum 
size requirement for white seedless grapefruit grown in Florida and 
imported white seedless grapefruit. This rule relaxes the minimum size 
requirement for domestic and import shipments from 3\9/16\ inches to 
3\5/16\ inches. This change maximizes fresh white seedless grapefruit 
shipments and provides greater flexibility to handlers and importers. 
This rule amends the provisions of Sec. Sec.  905.306 and 944.106. 
Authority for the change in the order's rules and regulations is 
provided in Sec.  905.52. The change in the import regulation is 
required under section 8e of the Act.
    This action is not expected to increase costs associated with the 
order requirements or the grapefruit import regulation. Rather, this 
action represents a cost savings for handlers and has the potential to 
increase industry returns. This change makes the minimum size 
requirement the same for both the domestic and export markets. Having 
the same minimum size requirement for both domestic and export 
shipments makes it easier to move fruit to available markets without 
having to repack fruit to meet the differing size requirements. This 
reduces costs and provides greater flexibility for handlers. Importers 
also benefit from this change, as a greater volume of fruit is 
available for shipment to the United States. The opportunities and 
benefits of this rule are equally available to all grapefruit handlers, 
growers, and importers, regardless of their size.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large grapefruit handlers. 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 Florida citrus industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the December 16, 2008, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue.
    Comments on the interim final rule were required to be received on 
or before April 8, 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/search/Regs/home.html#searchResults?Ne=11+8+8053+8098+8074+8066+8084+1&Ntt=AMS-FV-09-0002&Ntk=All&Ntx=mode+matchall&N=0.
    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 final 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 15641, April 7, 2009) will tend to 
effectuate the declared policy of the Act.

List of Subjects

7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements, Tangelos, Tangerines.

7 CFR Part 944

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

PARTS 905 AND 944--[AMENDED]

0
Accordingly, the interim final rule that amended 7 CFR parts 905 and 
944 and that was published at 74 FR 15641 on April 7, 2009, is adopted 
as a final rule, without change.

    Dated: September 9, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-22114 Filed 9-14-09; 8:45 am]
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