[Federal Register Volume 83, Number 203 (Friday, October 19, 2018)]
[Rules and Regulations]
[Pages 52944-52946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22759]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-SC-17-0049; SC17-906-2 FR]


Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; 
Changing of Container Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule implements a recommendation to change the container 
requirements under the Marketing Order for oranges and grapefruit grown 
in the Lower Rio Grande Valley in Texas. This action removes five 
containers from the list of authorized containers and adds seven new 
containers to the list. This change also modifies the descriptions of 
two authorized containers.

DATES: Effective November 19, 2018.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, 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 request information on complying with this 
regulation 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 final rule, 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 final rule is issued under Marketing Agreement and 
Order No. 906, as amended (7 CFR part 906), regulating the handling of 
oranges and grapefruit grown in the Lower Rio Grande Valley in Texas. 
Part 906 (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 Texas Valley Citrus 
Committee (Committee) locally administers the Order and is comprised of 
growers and handlers of Texas citrus operating within the production 
area.
    The Department of Agriculture (USDA) is issuing this final rule in 
conformance with Executive Orders 13563 and 13175. This action 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' '' (February 2, 2017).
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This final rule removes five containers from the list of authorized 
containers under the Order and adds seven new containers to the list. 
This action also modifies the descriptions of two authorized 
containers. The Committee recommended these changes to align the 
Order's container regulations with current industry practices. The 
Committee unanimously recommended the changes at a meeting on June 8, 
2017.
    Section 906.40(d) of the Order authorizes the issuance of 
regulations to fix the size, weight, capacity, dimensions, or pack of 
the container or containers which may be used in the packaging, 
transportation, sale, shipment, or other handling of fruit. Section 
906.340 provides that no handler shall handle any variety of oranges or 
grapefruit grown in the production area unless such fruit is packed in 
one of the containers specified under the Order. This section also 
specifies a detailed list of the containers currently authorized under 
the Order. In addition, this section allows the Committee to approve 
the use of other types and sizes of containers for testing for research 
purposes.
    The Committee reviewed the containers listed in Sec.  906.340 and 
compared them to the containers being utilized throughout the industry. 
This process included surveying handlers to determine which containers 
were being used. As a result, the Committee determined five of the 
authorized

[[Page 52945]]

containers were no longer being used to pack Texas oranges or 
grapefruit.
    The Committee also reviewed the list of experimental containers 
that had been approved for testing purposes. Seven of the experimental 
containers have been widely accepted throughout the Texas citrus 
industry and are being used to pack and ship Texas citrus. As a result 
of the review, the Committee voted to remove the five containers that 
were no longer being used from the list of authorized containers and 
add the seven experimental containers to Sec.  906.340.
    The Committee also discussed that while the description in Sec.  
906.340(a)(1)(ii) of the closed fully telescopic fiberboard carton with 
approximate inside dimensions of 16\1/2\ by 10\3/4\ by 9\1/2\ inches is 
correct, this container is commonly known throughout the Texas citrus 
industry as a standard carton. Consequently, for clarification 
purposes, the Committee voted to add the words ``Standard Carton'' to 
this container description.
    Further, the Committee noted that in Sec.  906.340(a)(1)(iv) poly 
or mesh bags can be used to pack oranges and grapefruit to a capacity 
of 5, 8, 10, or 18 pounds of fruit, but that only oranges can be packed 
in the 4-pound bags. During the discussion, Committee members agreed 
handlers should also be allowed to ship grapefruit in 4-pound bags. 
Thus, the Committee voted to update the description to allow for the 
packing of both oranges and grapefruit in poly or mesh bags having a 
capacity of 4 pounds.
    These changes reflect the containers being utilized throughout the 
industry and aligns the regulations with current industry practices.
    Section 8e of the Act provides that when certain domestically 
produced commodities, including oranges, are regulated under a Federal 
marketing order, imports of that commodity must meet the same or 
comparable grade, size, quality, and maturity requirements. As this 
rule changes the container requirements under the domestic handling 
regulations, no corresponding change to the import regulations is 
required.

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 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 170 producers of oranges and grapefruit in 
the production area and 13 handlers subject to regulation under the 
Order. Small agricultural producers are defined by the Small Business 
Administration (SBA) as those having annual receipts less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    Based on National Agricultural Statistics Service (NASS) and 
Committee data, the average price for Texas citrus during the 2016-17 
season was approximately $16 per carton, and total shipments were 7.6 
million cartons. Using the average price and shipment information, the 
number of handlers (13), and assuming a normal distribution, the 
majority of handlers would have average annual receipts of $9.4 
million, which is greater than $7,500,000. ($16 per carton times 7.6 
million cartons equals $121.6 million, divided by 13 equals $9.4 
million per handler.) Thus, the majority of Texas citrus handlers may 
be classified as large business entities.
    In addition, based on NASS information, the weighted grower price 
for Texas citrus during the 2016-17 season was approximately $9.35 per 
carton. Using the weighted average price and shipment information, the 
number of producers (170) and assuming a normal distribution, the 
majority of producers would have annual receipts of $418,000, which is 
less than $750,000. ($9.35 per carton times 7.6 million cartons equals 
$71.06 million, divided by 170 equals $418,000 per producer.) Thus, the 
majority of Texas citrus producers may be classified as small entities.
    This final rule revises the container requirements established 
under the Order. This rule removes five containers from the list of 
authorized containers and adds seven new containers to the list. This 
action also updates one container to allow handlers to use it to pack 
oranges and grapefruit, and modifies the description of another 
container to indicate it is the standard container used by the 
industry. These changes align the list of authorized containers with 
current industry needs and practices. This rule revises Sec.  906.340. 
Authority for these changes is provided in Sec.  906.40.
    It is not anticipated that this final rule will impose additional 
costs on handlers or growers, regardless of size. The containers 
removed from the list of authorized containers are no longer being used 
by the industry. This rule provides an additional container for packing 
grapefruit, clarifies the description for one container, and adjusts 
the container regulations to better reflect current industry practices. 
The benefits of this rule are expected to be equally available to all 
fresh orange and grapefruit growers and handlers, regardless of size.
    The Committee considered alternatives to this action, including 
making no changes to the list of authorized containers. However, it was 
determined that making the recommended changes provides an up-to-date 
list of containers currently being used by the Texas citrus industry. 
Therefore, the Committee rejected this alternative.
    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 OMB and assigned OMB No. 0581-0189, Fruit Crops. 
No changes in those requirements are necessary as a result of this 
action. Should any changes become necessary, they would be submitted to 
OMB for approval.
    This final rule does not impose any additional reporting or 
recordkeeping requirements on either small or large Texas orange and 
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.
    AMS is committed to complying with the E-Government Act to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this final rule.
    The Committee's meeting was widely publicized throughout the Texas 
citrus industry and all interested persons were invited to attend the 
meeting and participate in Committee deliberations on all issues. Like 
all Committee meetings, the June 8, 2017, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue.

[[Page 52946]]

    A proposed rule concerning this action was published in the Federal 
Register on July 6, 2018 (83 FR 31471). Copies of the proposed rule 
were sent via email to all Committee members and Texas citrus handlers. 
The proposed rule was made available through the internet by USDA and 
the Office of the Federal Register. A 30-day comment period ending 
August 6, 2018, was provided to allow interested persons to respond to 
the proposal. No comments were received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant matter presented, including the 
information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.

List of Subjects in 7 CFR Part 906

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

    For the reasons set forth in the preamble, 7 CFR part 906 is 
amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY 
IN TEXAS

0
1. The authority citation for 7 CFR part 906 continues to read as 
follows:

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


0
2. Revise Sec.  906.340(a)(1) to read as follows:


Sec.  906.340  Container, pack, and container marking regulations.

    (a) * * *
    (1) Containers. (i) Closed fiberboard carton with approximate 
inside dimensions of 13\1/4\ x 10\1/2\ x 7\1/4\ inches: Provided, That 
the container has a Mullen or Cady test of at least 200 pounds;
    (ii) Closed fully telescopic fiberboard carton with approximate 
inside dimensions of 16\1/2\ x 10\3/4\ x 9\1/2\ inches (Standard 
carton);
    (iii) Poly or mesh bags having a capacity of 4, 5, 8, 10, or 18 
pounds of fruit;
    (iv) Rectangular or octagonal bulk fiberboard crib with approximate 
dimensions of 46 to 47\1/2\ inches in length, 37 to 38 inches in width, 
and 36 inches in height: Provided, That the container has a Mullen or 
Cady test of at least 1,300 pounds, and that it is used only once for 
the shipment of citrus fruit: And Provided further, That the container 
may be used to pack any poly or mesh bags authorized in this section, 
or bulk fruit;
    (v) Rectangular or octagonal \2/3\ fiberboard crib with approximate 
dimensions of 46 to 47\1/2\ inches in length, 37 to 38 inches in width, 
and 24 inches in height: Provided, That the crib has a Mullen or Cady 
test of at least 1,300 pounds, and that it is used only once for the 
shipment of citrus fruit: And Provided further, That the container may 
be used to pack any poly or mesh bags authorized in this section, or 
bulk fruit;
    (vi) Octagonal fiberboard crib with approximate dimensions of 46 to 
47\1/2\ inches in width, 37 to 38 inches in depth, and 26 to 26\1/2\ 
inches in height: Provided, That the crib has a Mullen or Cady test of 
at least 1,300 pounds, and that it is used only once for the shipment 
of citrus fruit: And Provided further, That the crib may be used to 
pack any poly or mesh bags authorized in this section, or bulk fruit;
    (vii) Fiberboard box holding two layers of fruit, with approximate 
dimensions of 23 inches in length, 15\1/2\ inches in width, and 7 
inches in depth;
    (viii) Reusable collapsible plastic container with approximate 
dimensions of 23 inches in length, 15 inches in width, and 7 to 11 
inches in depth;
    (ix) Reusable collapsible plastic bin with approximate dimensions 
of 36\3/4\ x 44\3/4\ x 27 inches;
    (x) Octagonal bulk triple wall fiberboard crib with approximate 
dimensions of 37\3/4\ inches in length, 25 inches in width, and 25 
inches in height: Provided, That the container has a Mullen or Cady 
test of at least 1,100 pounds: And Provided further, That the container 
may be used to pack any poly or mesh bags authorized in this section, 
or bulk fruit;
    (xi) Bag having the capacity of 15 pounds of fruit, either in a 
combination \1/2\ poly and \1/2\ mesh bag or mesh bag;
    (xii) Reusable collapsible plastic mini bin with approximate 
dimensions of 39\1/2\ inches in length, 24 inches in width, and 30\1/2\ 
inches in height: Provided, That the container may be used to pack any 
poly or mesh bags authorized in this section, or bulk fruit;
    (xiii) Bag having the capacity of three pounds of fruit;
    (xiv) Standard carton with approximate inside dimensions of 16.375 
x 10.6875 x 10.25 inches;
    (xv) \8/5\ Body master carton with approximate inside dimensions of 
19.5385 x 13.125 x 11.625 inches, one piece;
    (xvi) Euro \8/5\ (5 Down) with approximate inside dimensions of 
22.813 x 14.688 x 7.0 up to 7.936 inches;
    (xvii) Fiberboard one piece display container with approximate 
inside dimensions of 23 inches x 15 inches x 9\1/2\ up to 10\1/2\ 
inches in depth;
    (xviii) Such types and sizes of containers as may be approved by 
the committee for testing in connection with a research project 
conducted by or in cooperation with the committee: Provided, That the 
handling of each lot of fruit in such test containers shall be subject 
to prior approval and under the supervision of the committee.
* * * * *

    Dated: October 15, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-22759 Filed 10-18-18; 8:45 am]
 BILLING CODE 3410-02-P