Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; and Fruits, Import Regulations (Grapefruit); Proposed Higher Grade Requirements for Florida-Grown and Imported Red and White Seedless Grapefruit

SUMMARY: This proposed rule would increase the minimum grade

requirements for Florida-grown and imported fresh red and white

seedless grapefruit to U.S. No. 1, from the current minimum grade

requirement of Improved No. 2 External-U.S. No. 1 Internal. This

proposed rule is designed to improve the quality and strengthen the

demand for fresh domestic, export, and import shipments of seedless

grapefruit in the interest of producers, handlers, and consumers of

such fruit.

DATES: Comments must be received by September 23, 1994.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposed rule to: Docket Clerk, Fruit and Vegetable

Division, AMS, USDA, P.O. Box 96456, Room 2523-S, Washington, DC 20090-

6456. Three copies of all written material shall be submitted, and they

will be made available for public inspection at the office of the

Docket Clerk during regular business hours. All comments should

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

Federal Register.

FOR FURTHER INFORMATION CONTACT: Mark Kreaggor, Marketing Order

Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.

Box 96456, Room 2523-S, Washington, DC 20090-6456; telephone: 202-720-

2431; or William G. Pimental, Southeast Marketing Field Office, USDA/

AMS, P.O. Box 2276, Winter Haven, Florida 33883; telephone: 813-299-

4770.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing

Agreement and Marketing Order No. 905 [7 CFR Part 905] regulating the

handling of oranges, grapefruit, tangerines, and tangelos grown in

Florida, hereinafter referred to as the order. This 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 proposed rule is also issued under section 8e [7 U.S.C.

Section 608e-1] of the Act. Section 8e of the Act provides that

whenever 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. Section 8e also provides that

whenever two or more marketing orders regulate the same commodity

produced in different areas of the United States, the Secretary shall

determine which area the imported commodity is in most direct

competition with and apply regulations based on that area to the

imported commodity. The Secretary has determined that grapefruit

imported into the United States are in most direct competition with

grapegruit grown in Florida regulated under the order, and has found

that the minimum grade and size requirements for imported grapefruit

should be the same as those established for grapefruit under the order.

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

conformance with Executive Order 12866.

This proposed rule has been reviewed under Executive Order 12778,

Civil Justice Reform. This proposed rule is not intended to have

retroactive effect. This proposed rule would not preempt any state or

local laws, regulations, or policies, unless they present an

irreconcilable conflict with this rule.

The Act provides that administrative proceedings must be exhausted

before parties may file suit in court. Under section 8c(15)(A) of the

Act, any handler subject to an order may file with the Secretary 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 requesting 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, the Secretary 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 in equity to review the

Secretary's ruling on the petition, provided a bill in equity is filed

not later than 20 days after the date of the entry of the ruling.

There are no administrative procedures which must be exhausted

prior to any judicial challenge to the provisions of this proposed rule

pertaining to grapefruit import requirements issued under section 8e of

the Act.

Pursuant to the 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. 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. Thus, both statutes have small

entity orientation and compatibility. Import regulations issued under

the Act are based on those established under Federal marketing orders.

There are about 100 Florida citrus handlers subject to regulation

under the order covering oranges, grapefruit, tangerines, and tangelos

grown in Florida, about 11,000 producers of these citrus fruits in

Florida, and about 25 grapefruit importers. Small agricultural service

firms, which includes grapefruit handlers and importers, have been

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

having annual receipts are less than $5,000,000, and small agricultural

producers are defined as those whose annual receipts are less than

$500,000. A minority of these handlers and a majority of these

producers and importers may be classified as small entities.

The Citrus Administrative Committee (committee) met on June 21,

1994, and recommended the regulatory changes for Florida citrus. The

committee meets prior to and during each season to review the handling

regulations effective on a continuous basis for each citrus fruit

regulated under the order. Committee meetings are open to the public,

and interested persons may express their views at these meetings. The

Department reviews committee recommendations and information, as well

as information from other sources, and determines whether modification,

suspension, or termination of the handling regulations would tend to

effectuate the declared policy of the Act.

Section 905.306 [7 CFR 905.306] specifies minimum grade

requirements for different varieties of fresh Florida-grown grapefruit,

as authorized by Sec. 905.52 [7 CFR 905.52] of the order. Section

905.306 specifies such grade requirements in TABLE I of paragraph (a)

for domestic markets (fruit shipped from the production area to any

point outside thereof in the 48 contiguous States and the District of

Columbia of the United States), and in TABLE II of paragraph (b) for

export markets (fruit shipped from any point in the 48 contiguous

States and the District of Columbia of the United States to any

destination).

This proposed rule would amend Sec. 905.306 by revising the entries

for grapefruit in TABLE I and in TABLE II, effective September 1, 1994.

Under the proposal, the minimum grade requirements for domestic and

export shipments of Florida-grown red and white seedless grapefruit

would be increased to U.S. No. 1, from the current minimum grade

requirement of Improved No. 2 External--U.S. No. 1 Internal, beginning

with 1994-95 season shipments.

The current minimum size requirements for Florida-grown red and

white seedless grapefruit for both domestic and export shipment would

remain unchanged under this rule. Also, the current minimum grade and

size requirements for Florida-grown red and white seeded grapefruit for

both domestic and export shipments would remain unchanged.

This proposed rule would remove entries and seeded pink grapefruit

and seedless pink grapefruit in TABLE I and in TABLE II of

Sec. 905.306. Such removal is necessary because such pink grapefruit

were reclassified as red grapefruit and the entries in such tables for

pink grapefruit were changed to red grapefruit by a final rule

published in the Federal Register [55 FR 41659, October 15, 1990], but

such changes were not incorporated in the Code of Federal Regulations.

The committee recommended that the minimum grade requirements for

domestic and export market shipments of fresh Florida-grown red and

white seedless grapefruit be increased, as specified. The committee

reports that it expects that the proposed higher minimum grade

requirements will result in better quality Florida-grown red and white

seedless grapefruit being shipped to the fresh market, and that such

fruit should receive greater consumer support, increase consumer

demand, and improve grower returns. The consumer demand for such

grapefruit should be strengthened, because consumers prefer the higher

quality grapefruit which this proposed rule should require be shipped.

Minimum grade requirements under the order are designed to provide

fresh markets with fruit of acceptable grade and maturity, thereby

maintaining consumer confidence in fresh Florida-grown grapefruit. This

helps create buyer confidence and contributes to stable marketing

conditions.

The proposed higher grade requirements for Florida-grown red and

white seedless grapefruit are based on the committee's assessment of

the prospective crop and market conditions for the 1994-95 season

Florida-grown seedless grapefruit crop. The proposed requirements are

designed to enable Florida grapefruit shippers to ship red and white

seedless grapefruit to the domestic and export markets consistent with

anticipated demand in those markets.

Processing outlets are an important market for Florida-grown

seedless grapefruit, with nearly one-half of the seedless grapefruit

crop produced in Florida normally utilized in processing. Any

grapefruit which do not meet the proposed higher grade requirements

could be utilized in processing outlets.

The committee reports that it expects that more red and white

seedless grapefruit will be produced in Florida during the 1994-95

season than last season. The committee also expects that supplies of

fresh Florida-grown red and white seedless grapefruit meeting the

higher grade requirements will adequately meet consumer demand during

the entire 1994-95 season. The Florida seedless grapefruit shipping

season normally begins in September and continues until the following

July, but occasionally it begins in late August.

This proposed rule is designed to establish and maintain orderly

marketing conditions in the United States for fresh Florida-grown red

and white seedless grapefruit in the interest of producers, handlers,

and consumers, and it expected to increase returns to Florida

grapefruit producers.

Under the order, handlers may ship up to 15 standard packed cartons

(12 bushels) of fruit per day exempt from grade and size requirements.

Fruit shipped in gift packages which are individually addressed and not

for resale, and fruit shipped for animal feed are also exempt from

grade and size requirements under specific conditions. Also, fruit

shipped to commercial processors for conversion into canned or frozen

products or into a beverage base are not subject to the handling

requirements under the order.

Minimum grade and size requirements for grapefruit imported into

the United States are currently in effect under Sec. 944.106 [7 CFR

944.106]. This proposed rule would amend Sec. 944.106 by revising

paragraph (a) and the table in that section by modifying the entries

for imported red and white seedless grapefruit. This would increase the

minimum grade requirements for such grapefruit to U.S. No. 1, from the

current minimum grade requirement of Improved No. 2 External--U.S. No.

1 Internal. The proposed higher grade requirements for imported red and

white seedless grapefruit are the same as those being proposed in this

rule under Sec. 905.306 for red and white seedless grapefruit grown in

Florida.

The current minimum size requirements for imported red and white

seedless grapefruit would remain unchanged under this proposed rule.

Also, the current minimum grade and size requirements for imported red

and white seeded grapefruit would remain unchanged.

In accordance with section 8e of the Act, the United States Trade

Representative has concurred with the issuance of this proposed rule,

as it pertains to red and white seedless grapefruit imported into the

United States.

This proposed rule reflects the committee's and the Department's

appraisal of the need to increase the minimum grade requirements for

fresh Florida-grown red and white seedless grapefruit, as specified.

The Department's view is that this proposed rule could have a

beneficial impact on Florida producers and handlers of fresh seedless

grapefruit, since it would enable such producers and handlers to make

available those grades of grapefruit needed to meet consumer needs

consistent with 1994-95 season crop and market conditions.

This proposed rule also reflects the Department's appraisal of the

need to increase the grade requirements for imported red and white

seedless grapefruit, so that such fruit would meet the same higher

grade requirements proposed for Florida-grown red and white seedless

grapefruit, consistent with the Act.

Based on the above, the Administrator of the AMS has determined

that this proposed rule would not have a significant economic impact on

a substantial number of small entities.

A comment period of 15 days is deemed appropriate because the

higher grade requirements for Florida-grown red and white seedless

grapefruit need to be in effect when shipment of Florida's 1994-95

season fresh seedless grapefruit crop is expected to begin on or about

September 1, 1994.

List of Subjects

7 CFR Part 905

Grapefruit, Marketing agreements, Oranges, Reporting and

recordkeeping requirements, Tangelos, Tangerines.

7 CFR Part 944

Avocados, Food grades and standards, Grapefruit, Grapes, Imports,

Kiwifruit, Limes, Olives, Oranges.

For the reasons set forth in the preamble, 7 CFR Parts 905 and 944

are proposed to be amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN

FLORIDA

1. The authority citation for 7 CFR parts 905 and 944 continues to

read as follows:

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

2. Section 905.306 is amended by revising the entries in TABLE I of

paragraph (a) and in TABLE II of paragraph (b) for ``seeded, except red

grapefruit'', ``seeded, red grapefruit'', ``seedless, except red

grapefruit'', and ``seedless, red grapefruit''; and by removing the

entries for ``seeded, except pink grapefruit'', ``seeded, pink

grapefruit'', ``seedless, except pink grapefruit'', and ``seedless,

pink grapefruit'' to read as follows:

Sec. 905.306 Orange, grapefruit, tangerine and tangelo regulation.

(a) * * *

Table I

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

Minimum

Variety Regulation period Minimum grade diameter

(inches)

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

(1) (2)........................................... (3)................. (4)

* * * * * * *

GRAPEFRUIT

* * * * * * *

Seeded, except red........ On and after 09/01/94......................... U.S. No. 1.......... 3\12/16\

Seeded, red............... On and after 09/01/94......................... U.S. No. 1.......... 3\12/16\

Seedless, red............. On and after 09/01/94......................... U.S. No. 1.......... 3\9/16\

Seedless, except red...... 09/01/94-11/06/94............................. U.S. No. 1.......... 3\5/16\

On and after 11/07/94......................... U.S. No. 1.......... 3\9/16\

* * * * * * *

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

(b) * * *

Table II

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

Minimum

Variety Regulation period Minimum grade diameter

(inches)

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

(1) (2)........................................... (3)................. (4)

* * * * * * *

GRAPEFRUIT

* * * * * * *

Seeded, except red........ On and after 09/01/94......................... U.S. No. 1.......... 3\9/16\

Seeded, red............... On and after 09/01/94......................... U.S. No. 1.......... 3\9/16\

Seedless, except red...... On and after 09/01/94......................... U.S. No. 1.......... 3\5/16\

Seedless, red............. On and after 09/01/94......................... U.S. No. 1.......... 3\5/16\

* * * * * * *

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

* * * * *

PART 944--FRUITS; IMPORT REGULATIONS

3. Section 944.106 is amended by revising paragraph (a), and by

redesignating the second appearing paragraph (h) as paragraph (i) to

read as follows:

Sec. 944.106 Grapefruit import regulation.

(a) Pursuant to Section 8e [7 U.S.C. Section 608e-1] of the

Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-

674], and Part 944--Fruits; Import Regulations, the importation into

the United States of any grapefruit is prohibited unless such

grapefruit meet the following minimum grade and size requirements for

each specified grapefruit classification:

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

Minimum

Grapefruit classification Regulation period Minimum grade diameter

(inches)

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

Seeded.................... On & after 09/01/94........................... U.S. No. 1.......... 3\12/16\

Seedless, red............. 09/01/94-11/06/94............................. U.S. No. 1.......... 3\5/16\

On & after 11/07/94........................... U.S. No. 1.......... 3\9/16\

Seedless, except red...... On & after 09/01/94........................... U.S. No. 1.......... 3\9/16\

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

* * * * *

Dated: September 6, 1994.

Martha B. Ransom,

Acting Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-22251 Filed 9-7-94; 8:45 am]

BILLING CODE 3410-02-M