Vegetables; Import Regulations; Modification of Regulatory Time Periods for Imported Onions and Establishment of Requirements for Red Variety Onions

DEPARTMENT OF AGRICULTURE

7 CFR Part 980

[FV94-980-1PR]

Vegetables; Import Regulations; Modification of Regulatory Time

Periods for Imported Onions and Establishment of Requirements for Red

Variety Onions

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: This proposed rule would modify the time periods when imported

onions are regulated based on the grade, size, quality and maturity

requirements of the South Texas onion and Idaho-Eastern Oregon onion

marketing orders. This proposal also would establish import

requirements for red variety onions based on South Texas requirements.

The proposed changes are needed to make the onion import requirements

consistent with changes to the South Texas onion marketing order, as

required by section 8e of the Agricultural Marketing Agreement Act of

1937 (Act).

DATES: Comments must be received by July 29, 1994.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposed rule. Comments must be sent in triplicate to

the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S,

P.O. Box 96456, Washington, DC 20090-6456. All comments should

reference the docket number and the date and page number of this issue

of the Federal Register and will be made available for public

inspection in the Office of the Docket Clerk during regular business

hours.

FOR FURTHER INFORMATION CONTACT:

Robert F. Matthews, Marketing Specialist, Marketing Order

Administration Branch, F&V, AMS, USDA, room 2525-S, P.O. Box 96456,

Washington, DC 20090-6456: telephone: (202) 690-0464, Fax (202) 720-

5698.

SUPPLEMENTARY INFORMATION: This rule is proposed under section 8e of

the Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C.

601-674], hereinafter referred to as the Act.

The Department of Agriculture (Department) is issuing this rule in

conformance with Executive Order 12866.

This rule has been reviewed under Executive Order 12778, Civil

Justice Reform. This rule is not intended to have retroactive effect.

This rule will not preempt any state or local laws, regulations, or

policies, unless they present an irreconcilable conflict with this

rule. There are no administrative procedures which must be exhausted

prior to any judicial challenge to the provisions of this proposed

rule.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA), the Administrator of the Agricultural Marketing Service

(AMS) has considered the economic impact of this action on small

entities.

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. There are approximately

40 importers of onions who would be affected by this proposal. Small

agricultural service firms, which include onion importers, have been

defined by the Small Business Administration [13 CFR 121.601] as those

having annual receipts of less than $5,000,000. The majority of onion

importers may be classified as small entities.

Import regulations issued under the Act are based on regulations

established under Federal marketing orders to regulate domestically

produced products. Thus, this proposed rule should have small entity

orientation, and impact on both small and large business entities in a

manner comparable to rules issued under marketing orders. This rule

proposes to modify the dates when imported onions, including red

variety onions, are regulated based on requirements of the South Texas

onion and Idaho-Eastern Oregon onion marketing orders.

Section 8e provides that whenever certain specified commodities,

including onions, are regulated under a Federal marketing order,

imports of that commodity must meet the same or comparable grade, size,

quality, and maturity requirements as those in effect for the

domestically produced commodity. The Act further provides that when two

or more marketing orders covering the same commodity are concurrently

in effect, imports will be subject to the requirements established for

the commodity grown in the area with which the imported commodity is in

most direct competition.

Marketing Order No. 958 regulates onions grown in certain counties

of Idaho and Eastern Oregon and Marketing Order No. 959 regulates

onions grown in South Texas. Fresh onion shipments from Idaho-Eastern

Oregon are regulated throughout the year, while onion shipments from

South Texas were regulated from March 1 through May 20 each year. On

the basis of past shipment data, the Secretary of Agriculture

(Secretary) had determined that onions imported during the March 10

through May 20 period were in most direct competition with onions grown

in South Texas and found that the minimum grade, size, quality, and

maturity requirements for onions imported during that period should be

the same as those established for South Texas onions under Marketing

Order No. 959. The Secretary further determined that onions imported

during the May 21 through March 9 period were in most direct

competition with onions grown in Idaho-Eastern Oregon and that the

minimum grade, size, quality, and maturity requirements for onions

imported during that period should be the same as those established for

Idaho-Eastern Oregon onions under Marketing Order No. 959.

Based on a recommendation of the South Texas Onion Committee

(committee), the agency responsible for local administration of

Marketing Order No. 959, the Department has extended the end of the

South Texas regulatory period from May 20 to June 15. The Fruit and

Vegetable Division's Market News Service has reported no onion

shipments of commercial quantities from the Idaho-Easter Oregon

production area during June from the 1990 through 1993 period, and only

one year during this period, 1993, were onion shipments recorded during

May. Therefore, onions imported during the period March 10 through June

15 are in most direct competition with those produced in South Texas.

Thus, now that the change in the regulatory period for South Texas

onions is effective, a corresponding change must be made in the onion

import regulation so that the requirements established under the South

Texas marketing order would be the determining requirements for onions

imported during the May 21 through June 15 period. Currently, imports

of onions during that period are required to meet minimum requirements

based on those established under the Idaho-Eastern Oregon marketing

order. This rule proposes to change onion import requirements to be the

same as the South Texas requirements during that period. With that

adjustment, the onion import requirement would be based on the

requirements for South Texas onions during the period March 10 through

June 15, and would be based on the requirements for Idaho-Eastern

Oregon onions during the June 16 through March 9 period.

Red onion varieties are subject to minimum grade, size, quality,

and maturity requirements under the Idaho-Eastern Oregon marketing

order, but those requirements are not in effect for imported red onions

during the South Texas regulatory period. Red onion varieties are not

currently regulated under the South Texas onion order. However, based

on a recommendation of the committee, the Department has established

minimum requirements for red onion varieties grown in the South Texas

production area. Since South Texas red onion varieties are regulated,

red onions, imported from March 10 to May 20 would be required to grade

at least U.S. No. 1 with a 20 percent defect allowance and 1 and \3/4\

inch minimum diameter. This requirement would be in effect through June

15 as the South Texas regulatory period has been extended to June 15.

Based on these considerations, the Administrator of the AMS has

determined that this action would not have a significant economic

impact on a substantial number of small entities.

In accordance with section 8e of the Act, the U.S. Trade

Representative has concurred with the issuance of this proposed rule.

Interested persons are invited to submit their views and comments

on this proposal. A 30-day comment period is provided.

List of Subjects in 7 CFR Part 980

Food grades and standards, Imports, Marketing agreements, Onions,

Potatoes, Tomatoes.

For the reasons set forth in the preamble, 7 CFR Part 980 is

proposed to be amended as follows:

PART 980--VEGETABLES; IMPORT REGULATIONS

1. The authority citation for 7 CFR Part 980 continues to read as

follows:

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

Sec. 980.117 [Amended]

2. In Sec. 980.117, paragraph (a)(2) is amended by removing ``May

21'' and adding in its place ``June 16'' and by removing ``May 20'' and

adding in its place ``June 15''; paragraph (b)(1) is amended by

removing ``May 21'' and adding in its place ``June 16''; and paragraph

(b)(2) is amended by removing ``May 20'' and adding in its place ``June

15''.

Dated: June 23, 1994.

Robert C. Keeney,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-15719 Filed 6-28-94; 8:45 am]

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