[Federal Register Volume 75, Number 116 (Thursday, June 17, 2010)]
[Rules and Regulations]
[Pages 34343-34345]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14572]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 925 and 944

[Doc. No. AMS-FV-09-0085; FV10-925-1 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 rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that relaxed the handling 
requirements prescribed under the California table grape marketing 
order (order) and the table grape import regulation. The interim rule 
relaxed the one-quarter pound minimum bunch size requirement for the 
2010 and subsequent seasons for grapes packed in consumer packages 
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 
of at least five berries each. This action continues the relaxation 
that was prescribed on a one-year test basis in 2009 and provides 
California desert grape handlers and importers the flexibility to 
respond to an ongoing marketing opportunity to meet consumer needs.

DATES: Effective June 18, 2010.

FOR FURTHER INFORMATION CONTACT: Jerry L. Simmons, 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 Antoinette Carter, 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

[[Page 34344]]

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 requirements of U.S. No. 1 Table grade grapes. In 
response to a marketing opportunity, the industry experimented 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 grade 
grapes packed in these containers. The 2009 experimental period was 
successful and the Committee recommended continuing these handling 
requirements for the 2010 and subsequent seasons.
    Imported table grapes are subject to regulations specified in 7 CFR 
part 944. Under those regulations, imported grapes must meet the same 
minimum size requirement as specified for domestic grapes under the 
order. Therefore, the minimum bunch size requirement was also relaxed 
for imported grapes packed in small consumer packages containing 2 
pounds net weight or less.
    In an interim rule published in the Federal Register on April 5, 
2010, and effective on April 8, 2010, (75 FR 17031, Doc. No. AMS-FV-09-
0085, FV10-925-1 IFR), Sec. Sec.  925.304 and 944.503 were amended by 
relaxing the one-quarter pound minimum bunch size requirement for the 
2010 and subsequent seasons 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 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 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 about 15 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 about 100 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. Four of 
the 15 handlers subject to regulation have annual grape sales of more 
than $7,000,000. Based on data from the National Agricultural 
Statistics Service and the committee, the crop value for 2009 was about 
$55,000,000. Dividing this figure by the number of producers (50) 
yields an average annual producer revenue estimate of $1,100,000, this 
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. It is estimated that the 
average importer receives $3,200,000 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 2010 and subsequent 
seasons 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 consumer package weighing two 
pounds or less 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 of the Act.
    There is general agreement in the industry for the need to continue 
to relax the minimum bunch size requirement for grapes packed in these 
consumer packages to allow for more packaging options. No additional 
alternatives were considered because the 2009 one-year test relaxation 
produced the desired results with no identified problems. The committee 
unanimously agreed that the relaxation for grapes packed in consumer 
packages containing 2 pounds net weight or less was appropriate to 
prescribe for the 2010 and subsequent seasons.
    Regarding the impact of this rule on affected entities, this rule 
provides both California desert grape handlers and importers the 
flexibility to continue to respond to an ongoing marketing opportunity 
to meet consumer needs. This marketing opportunity initially existed in 
the 2009 season, and the minimum bunch size regulations were relaxed 
accordingly for one year on a test basis. As in 2009, 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 packages, 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 12, 2009, 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 also notified of this action.
    Comments on the interim rule were required to be received on or 
before May 5, 2010. One comment was received. That comment was in 
support of the relaxation of the handling requirements providing a 
larger tolerance margin for

[[Page 34345]]

smaller bunches in consumer packages holding 2 pounds net weight or 
less. Therefore, for the reasons given in the interim rule, we are 
adopting the interim rule as a final rule, without change.
    To view the interim rule, go to: http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480acfcb7.
    This action also affirms information contained in the interim 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 rule, without change, as published in the 
Federal Register (75 FR 17031, April 5, 2010) 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 rule that amended 7 CFR parts 925 and 944 and 
that was published at 75 FR 17031 on April 5, 2010, is adopted as a 
final rule, without change.

    Dated: June 11, 2010.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2010-14572 Filed 6-16-10; 8:45 am]
BILLING CODE P