[Federal Register Volume 83, Number 78 (Monday, April 23, 2018)]
[Rules and Regulations]
[Pages 17615-17616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08424]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
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  Federal Register / Vol. 83, No. 78 / Monday, April 23, 2018 / Rules 
and Regulations  

[[Page 17615]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Doc. No. AMS-SC-17-0063; SC17-905-1 FIR]


Oranges, Grapefruit, Tangerines and Pummelos Grown in Florida and 
Imported Grapefruit; Change of Size Requirements for Grapefruit

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 implementing a recommendation 
from the Citrus Administrative Committee (Committee) to relax the 
minimum size requirements currently prescribed under the marketing 
order for oranges, grapefruit, tangerines, and pummelos grown in 
Florida and the grapefruit import regulation. The interim rule relaxed 
the minimum size requirement for domestic shipments and imports of 
grapefruit from 3 \5/16\ inches to 3 inches in diameter.

DATES: Effective April 24, 2018.

FOR FURTHER INFORMATION CONTACT: Abigail Campos, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or 
Email: [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 
website: http://www.ams.usda.gov/rules-regulations/moa/small-businesses; or by contacting Richard Lower, Marketing Order and 
Agreement Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: 
[email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This rule is issued under Marketing Order No. 905, as 
amended (7 CFR part 905), regulating the handling of oranges, 
grapefruit, tangerines, and pummelos grown in Florida. Part 905 
(referred to as 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.'' The Committee locally 
administers the Order and is comprised of growers and handlers 
operating within the production area and one public member.
    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 Orders 13563 and 13175. This rule falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this rule does not meet the definition of a 
significant regulatory action, it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    The handling of oranges, grapefruit, tangerines, and pummelos grown 
in Florida is regulated by the Order. Prior to this change, the minimum 
size requirement for domestic and export shipments of grapefruit was 3 
\5/16\ inches. The reduction in size requirement to 3 inches in 
diameter was established to meet both a market demand for small-sized 
grapefruit, as well as a general market shortage of citrus. Losses of 
citrus production in Florida due to citrus greening and damage caused 
by Hurricane Irma, have resulted in an overall market shortage of 
citrus fruit. Therefore, this rule continues in effect the rule that 
relaxed the minimum size requirement for grapefruit from 3 \5/16\ 
inches to 3 inches in diameter.
    In an interim rule published in the Federal Register on November 
21, 2017, and effective on November 24, 2017, (82 FR 55305, Doc. No. 
AMS-SC-17-0063; SC17-905-1 IR), Sec. Sec.  905.306 and 944.106 were 
amended by changing the minimum diameter for grapefruit from 3 \5/16\ 
inches to 3 inches in diameter. The change in the size requirements 
will allow more grapefruit into the market and help maximize shipments.

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 
businesses 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 20 handlers of Florida citrus who are 
subject to regulation under the Order and approximately 500 citrus 
producers in the regulated area. There are approximately 50 citrus 
importers. Small agricultural service firms are defined by the Small 
Business Administration (SBA) as those having annual receipts of less 
than $7,500,000, and small agricultural producers are defined as those 
having annual receipts of less than $750,000 (13 CFR 121.201).
    According to data from the National Agricultural Statistics Service 
(NASS), the industry, and the Committee, the average f.o.b. price for 
Florida grapefruit during the 2016-17 season was $29.40 per box, and 
total fresh grapefruit shipments were approximately 3.2 million boxes. 
Using the average f.o.b.

[[Page 17616]]

price and shipment data, the majority of Florida grapefruit handlers 
could be considered small businesses under SBA's definition ($29.40 
times 3.2 million boxes equals $94.1 million divided by 20 handlers 
equals $4.7 million per handler). In addition, based on NASS data, the 
average grower price for the 2016-17 season was $16.02 per box. Based 
on grower price, shipment data, and the total number of Florida citrus 
growers, the average annual grower revenue is below $750,000 ($16.02 
times 3.2 million boxes equals $51,264,000 divided by 500 producers 
equals $102,528 per handler). Information from the Foreign Agricultural 
Service, USDA, indicates that the dollar value of imported fresh 
grapefruit was approximately $11.2 million in 2016. Using this value 
and the number of importers (approximately 50), most importers would 
have annual receipts of less than $7,500,000 for grapefruit. Thus, the 
majority of handlers, producers, and importers of grapefruit may be 
classified as small entities.
    South Africa, Peru, and Mexico are the major grapefruit-producing 
countries exporting grapefruit to the United States. In 2016, shipments 
of grapefruit imported into the United States totaled approximately 
24,000 metric tons.
    This rule continues in effect the action that reduced the minimum 
size requirements for grapefruit covered under the Order and imported 
grapefruit from 3 \5/16\ inches to 3 inches in diameter. This change is 
expected to maximize shipments by allowing more grapefruit to be 
shipped to the fresh market while providing greater flexibility to 
handlers and importers. Further, it helps reduce the losses sustained 
by the grapefruit industry as a result of citrus greening and Hurricane 
Irma. This rule amends the provisions of Sec. Sec.  905.306 and 
944.106. Authority for the change 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's requirements. Rather, this action will have a beneficial 
impact. Reducing the size requirements makes additional fruit available 
for shipment to the fresh market, provides an outlet for fruit that may 
otherwise go unharvested, and affords more opportunity to meet consumer 
demand. This change provides additional fruit to fill the shortage 
caused by citrus greening and Hurricane Irma. Further, by maximizing 
shipments, this action will help provide additional returns to growers 
and handlers as they work to recover from the losses stemming from the 
hurricane.
    This action may also help reduce harvesting costs. By reducing the 
minimum size, more fruit can be harvested immediately. This may 
eliminate the need to leave fruit on the tree to increase in size, 
which requires follow-up picking later in the season. Given the amount 
of fruit loss, this could help reduce picking costs substantially. The 
benefits of this rule are expected to be equally available to all fresh 
grapefruit growers and handlers, regardless of their size.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189, ``Generic Fruit Crops.'' No changes in 
those requirements as a result of this action are necessary. Should any 
changes become necessary, they would be submitted to OMB for approval.
    This action imposes no 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. USDA has not identified any relevant 
Federal rules that duplicate, overlap or conflict with this rule.
    Further, the Committee's meetings were 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 June 29, 2017, and September 28, 2017, meetings 
were public meetings and all entities, both large and small, were able 
to express their views on this issue.
    Comments on the interim rule were required to be received on or 
before January 22, 2018. One comment was received during the comment 
period. The Commenter was in favor of the regulation, and stated that 
both producers and consumers would benefit from this action.
    Accordingly, no changes will be made to the interim rule, based on 
the comment received.
    To view the interim rule, go to: https://www.regulations.gov/document?D=AMS-SC-17-0063-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, 13563, and 13771; 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 (82 FR 55305, November 21, 2017) will tend to 
effectuate the declared policy of the Act.

List of Subjects

7 CFR Part 905

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

7 CFR Part 944

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

    Accordingly, the interim rule that amended 7 CFR parts 905 and 944 
and that was published at 82 FR 55305 on November 21, 2017, is adopted 
as a final rule, without change.

    Dated: April 18, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-08424 Filed 4-20-18; 8:45 am]
BILLING CODE 3410-02-P