[Federal Register Volume 88, Number 199 (Tuesday, October 17, 2023)]
[Rules and Regulations]
[Pages 71459-71461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-22695]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
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  Federal Register / Vol. 88, No. 199 / Tuesday, October 17, 2023 / 
Rules and Regulations  

[[Page 71459]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 52

[Doc. No. AMS-SC-21-0091]


United States Standards for Grades of Processed Raisins

AGENCY: Agricultural Marketing Service, Department of Agriculture 
(USDA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Agricultural Marketing Service (AMS) of the Department of 
Agriculture (USDA) has revised the U.S. Standards for Grades of 
Processed Raisins. AMS is modifying two references to the allowances 
for capstems within the standards to modernize the standards to reflect 
current industry practices. The revision also includes minor editorial 
changes to the table headings to align with updated Code of Federal 
Regulations (CFR) formatting requirements and correction of a 
typographical error from a previous revision.

DATES: Effective November 16, 2023.

FOR FURTHER INFORMATION CONTACT: Brian E. Griffin, USDA, Specialty 
Crops Inspection Division, 100 Riverside Parkway, Suite 101, 
Fredericksburg, VA 22406; Telephone (202) 748-2155; Fax (202) 690-1527; 
or Email [email protected]. Copies of the U.S. Standards for Grades 
of Processed Raisins are available on the Specialty Crops Inspection 
Division website at https://www.ams.usda.gov/grades-standards/fruits.

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
amends regulations at 7 CFR part 52 issued under the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1621-1627), as amended. This revision 
to the U.S. grade standards will also be reflected in enforcement of 
the grade requirements under the Federal marketing order, 7 CFR part 
989, issued under the Agricultural Marketing Agreement Act of 1937 (7 
U.S.C. 601-674) which regulates the handling of raisins produced from 
grapes grown in California, and 7 CFR part 999, which regulates the 
importation of raisins into the United States. AMS is revising these 
U.S. Standards for Grades using the procedures that appear in part 36 
of title 7 of the Code of Federal Regulations (7 CFR part 36).

Executive Orders 12866, 13563, and 14094

    USDA is issuing this rule in conformance with Executive Orders 
12866, 13563, and 14094. Executive Orders 12866 and 13563 direct 
agencies to assess all costs and benefits of available regulatory 
alternatives and, if regulation is necessary, to select regulatory 
approaches that maximize net benefits (including potential economic, 
environmental, public health and safety effects, distributive impacts, 
and equity). Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility. Executive Order 14094 reaffirms, 
supplements, and updates Executive Order 12866 and further directs 
agencies to solicit and consider input from a wide range of affected 
and interested parties through a variety of means. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) has exempted from review under Executive Order 12866.

Executive Order 13175

    This rule has been reviewed under Executive Order 13175--
Consultation and Coordination With Indian Tribal Governments, which 
requires agencies to consider whether their rulemaking actions would 
have Tribal implications.
    AMS has determined that this rule is unlikely to have substantial 
direct effects on one or more Indian Tribes, on the relationship 
between the Federal Government and Indian Tribes, or on the 
distribution of power and responsibilities between the Federal 
Government and Indian Tribes.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
There are no administrative procedures that must be exhausted prior to 
any judicial challenge to the provisions of this rule.

Background

    AMS continually reviews all fruit and vegetable grade standards to 
ensure their usefulness to the industry, and to modernize language and 
remove duplicative terminology. Changes to the headings for all tables 
within the U.S. Standards for Grades of Processed Raisins are required 
to reflect current CFR formatting requirements. Conforming changes to 
cross references to those tables within the standards are also applied. 
After publication of the proposed rule (88 FR 14296, March 8, 2023) a 
typographical error was found in Table 1 to Sec.  52.1852--Allowances 
for Defects in Raisins with Seeds--Except Layer or Cluster. Under 
Defects, Pieces of Stem, U.S. Grade A, allowances were erroneously 
listed as 7, and are corrected to read as 1.
    On October 13, 2017, AMS received a petition from the Raisin 
Administrative Committee (RAC), which locally administers the Federal 
marketing order regulating the handling of raisins produced from grapes 
grown in California (7 CFR part 989). The petition requested that AMS 
reduce the number of allowable capstems for all varietals, except Zante 
Currants, in all three Grades (A, B, and C) as follows: for Type I, 
Seedless Raisins and Type II, Golden Seedless Raisins the allowances 
for capstems would change in Grade A, from 15 to 10, in Grade B from 25 
to 15, and in Grade C from 35 to 20. For Sultana Raisins the allowances 
for capstems would change in Grade A from 25 to 10, in Grade B from 45 
to 15, and in Grade C from 65 to 20. The RAC further stated that, since 
1978, the industry has adopted major improvements, including laser 
sorters, x-rays, and super vacuums, which allow the industry to clean 
and sort with far superior results that ultimately exceed the current 
U.S. Standards for Grades of Processed Raisins.
    The AMS Agricultural Analytics Division (AAD) performed a study 
encompassing a total of 28,059 inspection results of all varietals, 
except Zante Currants, of both domestically produced raisins and 
imported raisins to compare USDA inspection results for capstems for a 
specified period of time with those that would be obtained under the 
proposed changes submitted

[[Page 71460]]

by the RAC based on data collected from AMS offices. AAD found that 
only slightly more than 1% of raisin inspections would result in a 
change of grade under the proposed rule.
    AMS also contacted the United Nations Economic Commission for 
Europe's (UNECE) largest member countries that produce raisins; Turkey; 
Germany, Europe's largest importer and consumer of raisins and dean of 
the European Union standardization sector; and the International Nut 
and Dried Fruit Council (INC), the largest international dry produce 
(fruits and nuts) member organization. AMS reached out in July 2020 and 
heard responses from October 2020 to February 2021 and ultimately made 
the decision to continue forward. While there was not consensus on the 
changes, which is not uncommon, with the AAD finding that only slightly 
more than 1% of recent raisin inspections would result in a change of 
grade under the proposed rule, AMS concluded that the proposed rule 
would not be overly burdensome on the domestic or international market, 
if enacted.

Comments

    On March 8, 2023, AMS published a proposed rule inviting comments 
on proposed revisions to the U.S. Standards for Grades of Processed 
Raisins in the Federal Register (88 FR 14296). Two anonymous comments 
were received, one suggesting no price increase based on increased 
regulation, and one not supporting the proposed changes stating, ``The 
AMS believes that they will not have a significant impact on the market 
if they are enacted, so they are not worth to put into effect.''
    The intent of the AMS comments regarding the significance of impact 
on handlers or growers is based on the Initial Regulatory Flexibility 
Analysis, which considered the economic impact of this action on small 
entities. Based on the initial Regulatory Flexibility Analysis, AMS 
does not believe there will be significant impact on handlers' or 
growers' benefits or costs. AMS is moving forward with the revisions as 
proposed by the RAC as they provide common language for trade and 
better reflect the current marketing of processed raisins.

Regulatory Flexibility Analysis

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), AMS has considered the economic impact of this 
action on small entities. Accordingly, AMS has prepared this regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
unduly or disproportionately burdened.
    According to the industry, there are approximately 2,000 raisin 
growers in California. According to the National Agricultural 
Statistics Service (NASS), for the 2020/21 season, the total value of 
production for raisin grapes was $353,200,000. Taking the total value 
of production for raisins and dividing it by the total number of raisin 
growers provides a return per grower of $176,600. A small raisins 
grower as defined by the Small Business Administration (SBA) (13 CFR 
121.201) is one that grosses $4,000,000 \1\ or less, annually. 
Therefore, most raisin producers are considered small entities under 
SBA's standards.
---------------------------------------------------------------------------

    \1\ The SBA threshold for small producers changed after the 
publication of the proposed rule. Thus, AMS changed the threshold to 
reflect the new SBA threshold in this final rule. The change to the 
raisin producer threshold does not impact AMS's ultimate 
determination regarding the impact of the rule on small entities.
---------------------------------------------------------------------------

    According to the industry, for the 2020/21 season there are 22 
handlers. A small agricultural service firm as defined by the SBA is 
one that grosses $34,000,000 \2\ or less, annually. Based on the annual 
handler report, for the 2020/21 season, 242,427 tons of raisins have 
been transferred to handlers for packing and shipment as of August 31, 
2021. The average grower price for raisins, for the 2020 crop, was 
$1,191 per ton. A reasonable assumption is that handlers would sell at 
a 10 percent markup over the grower price, resulting in a selling price 
of approximately $1,310 per ton. Multiplying the handler's selling 
price per ton by the total number of packed tons shipped during the 
2020 season provides a gross revenue of $317,579,370. Dividing the 
total revenue by the number of handlers reveals an average revenue per 
handler of $14,435,425. Based on the calculations above, the majority 
of raisin handlers are considered small entities under SBA's standard. 
This action should not have any impact on handlers' or growers' 
benefits or costs.
---------------------------------------------------------------------------

    \2\ The SBA threshold for small agricultural service firms 
(handlers) changed after the publication of the proposed rule. Thus, 
AMS changed the threshold to reflect the new SBA threshold in this 
final rule. The change to the handler threshold does not impact 
AMS's ultimate determination regarding the impact of the rule on 
small entities.
---------------------------------------------------------------------------

List of Subjects in 7 CFR Part 52

    Administrative practice, Fees, Food grades and standards, Food 
labeling, Frozen foods, Fruit juices, Fruits, Reporting and 
recordkeeping requirements, Vegetables.

    For reasons set forth in the preamble, the Agricultural Marketing 
Service amends 7 CFR part 52 as follows:

PART 52--PROCESSED FRUITS AND VEGETABLES, PROCESSED PRODUCTS 
THEREOF, AND CERTAIN OTHER PROCESSED FOOD PRODUCTS

0
1. The authority citation for part 52 continues to read as follows:

    Authority:  7 U.S.C. 1621-1627.


0
2. Amend Sec.  52.1846 by:
0
a. Removing, in paragraphs (a), (b), and (c) the words ``Table I of 
this subpart'' and adding in their places the words ``table 1 to this 
section''; and
0
b. Revising, in the table following paragraph (d), the heading and the 
entry for ``Capstems.''
    The revisions read as follows:


Sec.  52.1846  Grades of seedless raisins.

* * * * *

   Table 1 to Sec.   52.1846--Allowances for Defects in Type I, Seedless Raisins and Type II, Golden Seedless
                                                     Raisins
----------------------------------------------------------------------------------------------------------------
                        Defects                             U.S. Grade A       U.S. Grade B       U.S. Grade C
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
                                                        --------------------------------------------------------
                                                                      Maximum count (per 16 ounces)
                                                        --------------------------------------------------------
Capstems...............................................                 10                 15                 20
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------


[[Page 71461]]

Sec.  52.1849   [Amended]

0
3. Amend Sec.  52.1849 by removing the words ``Table I'' and adding in 
their place the words ``table 1 to Sec.  52.1846''.


0
4. Amend Sec.  52.1852 by:
0
a. Removing, in paragraphs (a), (b), and (c), the words ``Table II of 
this subpart'' and adding in their places the words ``table 1 to this 
section''; and
0
b. Revising, in the table following paragraph (d), the heading and the 
entry for ``Pieces of Stem.''
    The revisions read as follows:


Sec.  52.1852  Grades of raisins with seeds--except layer or cluster.

* * * * *

        Table 1 to Sec.   52.1852--Allowances for Defects in Raisins With Seeds--Except Layer or Cluster
----------------------------------------------------------------------------------------------------------------
                        Defects                             U.S. Grade A       U.S. Grade B       U.S. Grade C
----------------------------------------------------------------------------------------------------------------
                                                                      Maximum count (per 32 ounces)
                                                        --------------------------------------------------------
Pieces of Stem.........................................                  1                  2                  3
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------



0
5. Amend Sec.  52.1853 by:
0
a. Removing, in paragraphs (a) and (b), the words ``Table III of this 
subpart'' and adding in their place the words ``table 1 to this 
section''; and
0
b. Revising the heading of the table following paragraph (copyright).
    The revision reads as follows:


Sec.  52.1853  Grades of raisins with seeds--layer or cluster.

* * * * *
Table 1 to Sec.  52.1853--Allowances for Defects in Layer or Cluster 
Raisins with Seeds
* * * * *


0
6. Amend Sec.  52.1855 by:
0
a. Moving table IV to the end of the section following paragraph (d);
0
b. Removing, in paragraphs (a), (b), and (c), the words ``Table IV of 
this subpart'' and adding in their place the words ``table 1 to this 
section''; and
0
c. Revising, in the table following paragraph (d), the heading and the 
entry for ``Capstems.''
    The revisions read as follows:


Sec.  52.1855  Grades of Sultana raisins.

* * * * *

                      Table 1 to Sec.   52.1855--Allowances for Defects in Sultana Raisins
----------------------------------------------------------------------------------------------------------------
                        Defects                             U.S. Grade A       U.S. Grade B       U.S. Grade C
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
                                                        --------------------------------------------------------
                                                                      Maximum count (per 16 ounces)
                                                        --------------------------------------------------------
Capstems...............................................                 10                 15                 20
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------



0
7. Amend Sec.  52.1857 by:
0
a. Moving table V to the end of the section following paragraph (c);
0
b. Removing in paragraphs (a) and (b) the words ``Table V of this 
subpart'' and adding in their place the words ``table 1 to this 
section''; and
0
c. Revising the heading of the table following paragraph (c).
    The revision reads as follows:


Sec.  52.1857  Grades of zante currant raisins.

* * * * *
    Table 1 to Sec.  52.1857--Allowances for Defects in Zante Currant 
Raisins
* * * * *

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-22695 Filed 10-16-23; 8:45 am]
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