Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida and Imported Grapefruit; Relaxation of the Minimum Size Requirement for Red Seedless Grapefruit

SUMMARY: This interim final rule relaxes the minimum size requirement

for domestic shipments of Florida red seedless grapefruit and for red

seedless grapefruit imported into the United States to 3\5/16\ inches

in diameter (size 56) through November 12, 1995. Unless relaxed, the

minimum size requirement will increase under current requirements to

3\9/16\ inches in diameter (size 48) on November 7, 1994. This rule

enables handlers in Florida and importers to continue to ship size 56

red seedless grapefruit for the entire 1994-95 season.

DATES: Effective November 7, 1994; comments received by December 8,

1994 will be considered prior to issuance of any final rule.

ADDRESSES: Interested persons are invited to submit written comments

concerning this 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 available for public inspection in the office of

the Docket Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast

Marketing Field Office, USDA/AMS, P.O. Box 2276, Winter Haven, Florida

33883; telephone: 813-299-4770; or 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-

1755.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order

No. 905 (7 CFR Part 905), as amended, 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 rule is also issued under section 8e of the Act, which

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

grapefruit grown in Florida regulated under Marketing Order No. 905,

and has found that the minimum grade and size requirements for imported

grapefruit should be the same as those established for grapefruit under

Marketing Order No. 905.

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.

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 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 import regulations

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 approximately 110 Florida citrus handlers subject to

regulation under the marketing order covering oranges, grapefruit,

tangerines, and tangelos grown in Florida, about 11,970 producers of

these citrus fruits in Florida, and about 25 grapefruit importers.

Small agricultural service firms, which include grapefruit handlers and

importers, have been defined by the Small Business Administration (13

CFR 121.601) as those whose 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 majority of these handlers,

importers, and producers may be classified as small entities.

The order for Florida citrus provides for the establishment of

minimum grade and size requirements. The minimum grade and size

requirements are designated to provide fresh markets with fruit of

acceptable quality, thereby maintaining consumer confidence for fresh

Florida citrus. This helps create buyer confidence and contributes to

stable marketing conditions. This is in the interest of producers,

packers, and consumers, and is designed to increase returns to Florida

citrus growers.

The Citrus Administrative Committee (committee), which administers

the order locally, makes recommendations to the Secretary of

Agriculture as to the grade and size of fruit that should garner

consumer acceptance. 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.

The committee met September 13, 1994, and unanimously recommended

that the minimum size requirement for domestic shipments of fresh red

seedless grapefruit be relaxed from size 48 to size 56 for the period

November 7, 1994, to November 12, 1995. Size 56 (3\5/16\ inches

diameter) is the minimum size until November 6, 1994. At that time,

absent this revision of the rules and regulations under the order, the

minimum size will revert to size 48 (3\9/16\ inches diameter).

Section 905.52, Issuance of regulations, authorizes the committee

to recommend minimum grade and size regulations to the Secretary.

Section 905.306 (7 CFR 905.306) specifies minimum grade and size

requirements for different varieties of fresh Florida grapefruit. Such

requirements for domestic shipments are specified in Sec. 905.306 in

Table I of paragraph (a), and for export shipments in Table II of

paragraph (b).

Minimum grade and size requirements for grapefruit imported into

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

944.106), as reinstated on July 26, 1993 (58 FR 39428, July 23, 1993).

Export requirements are not changed by this rule.

In making its recommendation, the committee considered estimated

supply and current shipments. The committee reports that it expects

that fresh market demand will be sufficient to permit the shipment of

size 56 red seedless grapefruit grown in Florida during the entire

1994-95 season.

The committee recommended this relaxation in size to enable Florida

grapefruit shippers to continue shipping size 56 red seedless

grapefruit to the domestic market. This is consistent with current and

anticipated demand in those markets for the 1994-95 season, and will

provide for the maximization of shipments to fresh market channels.

There are several exemption provisions under the order. Handlers

may ship up to 15 standard packed cartons (12 bushels) of fruit per

day, and up to two standard packed cartons of fruit per day in gift

packages which are individually addressed and not for resale under

these provisions. Fruit shipped for animal feed is also exempt under

specific conditions. Fruit shipped to commercial processors for

conversion into canned or frozen products or into a beverage base are

not subject to the handling requirements.

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

of the need to relax the minimum size requirement for red seedless

grapefruit as specified. This rule will have a beneficial impact on

producers and handlers, since it will permit Florida grapefruit

handlers to make available those sizes of fruit needed to meet consumer

needs consistent with this season's crop and market conditions.

Section 8e of the Act provides that when certain domestically

produced commodities, including grapefruit, are regulated under a

Federal marketing order, imports of that commodity must meet the same

or comparable grade, size, quality, and maturity requirements. Since

this rule relaxes the minimum size requirement under the domestic

handling regulations, a corresponding change to the import regulations

is necessary.

This rule relaxes the minimum size requirements for imported red

seedless grapefruit to 3\5/16\ inches in diameter (size 56) for the

period November 7, 1994, through November 12, 1995, to reflect the

relaxation being made under the order for grapefruit grown in Florida.

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

Representative has concurred with the issuance of this interim final

rule.

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

that this rule will not have a significant economic impact on a

substantial number of small entities.

After consideration of all relevant material presented, including

the committee's recommendation, and other available information, it is

found that this interim final rule, as hereinafter set forth, will tend

to effectuate the declared policy of the Act.

Pursuant to 5 U.S.C. 553, it is also found and determined, upon

good cause, that it is impracticable, unnecessary and contrary to the

public interest to give preliminary notice prior to putting this rule

into effect, and that good cause exists for not postponing the

effective date of this action until 30 days after publication in the

Federal Register because:

(1) This rule relaxes the minimum size requirement currently in

effect for red seedless grapefruit grown in Florida and red seedless

grapefruit imported into the United States;

(2) Florida grapefruit handlers are aware of this action which was

unanimously recommended by the committee at a public meeting and they

will need no additional time to comply with the relaxed size

requirement;

(3) shipment of the 1994-95 season Florida red seedless grapefruit

crop is expected to be well underway by November 7, 1994; and

(4) the rule provides a 30-day comment period, and any comments

received will be considered prior to any finalization of this interim

final rule.

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 above, 7 CFR Parts 905 and 944 are

amended as follows:

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

read as follows:

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

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

FLORIDA

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

paragraph (a) for seedless, red grapefruit to read as follows:

Sec. 905.306 Orange, Grapefruit, Tangerine, and Tangelo Regulation.

(a) * * *

Table I

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

Minimum

Variety(1) Regulation Minimum Grade(3) Diameter

Period(2) (Inches)(4)

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

* * * * * * *

Grapefruit.........

* * * * * * *

Seedless, red.. 11/07/94-11/12/95. Improved No. 2 3\5/16\

External U.S. No.

1 Internal.

On and after 11/13/ Improved No. 2 3\9/16\

95. External U.S. No.

1 Internal.

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

* * * * *

PART 944--FRUITS; IMPORT REGULATIONS

3. Section 944.106 is amended by revising paragraph (a) 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 Regulation period Minimum grade diameter

classification (inches)

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

Seeded............. On and after 07/26/ U.S. No. 1........ 3\12/16\

93.

Seedless, red...... 11/07/94-11/12/95. Improved No. 2 3\5/16\

External U.S. No.

1 Internal.

On and after 11/13/ Improved No. 2 3\9/16\

95. External U.S. No.

1 Internal.

Seedless, except On and after 07/26/ Improved No. 2 3\9/16\

red. 93. External U.S. No.

1 Internal.

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

* * * * *

Dated: November 4, 1994.

Eric M. Forman,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-27752 Filed 11-4-94; 2:27 pm]

BILLING CODE 3410-02-P