Fruits; Import Regulations (Oranges); Proposed Reinstatement of Orange Import Grade Requirements

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 944

[Docket No. FV-92-058-PR]

Fruits; Import Regulations (Oranges); Proposed Reinstatement of

Orange Import Grade Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would reinstate, with minor revisions,

temporarily suspended minimum grade requirements for oranges imported

into the United States. These requirements were temporarily suspended

to provide the United States Trade Representative (USTR) adequate time

to review contemplated changes in the import requirements. This

proposed rule is needed so that imported oranges meet the same minimum

grade requirements as those established for oranges under the marketing

order covering Texas oranges.

DATES: Comments must be received by March 14, 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, P.O. Box

96456, room 2523-S, Washington, DC 20090-6456, or by facsimile at 202-

720-5698. 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: Charles L. Rush, Marketing Specialist,

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 Belinda G. Garza, McAllen Marketing Field

Office, USDA/AMS, 1313 East Hackberry, McAllen, Texas 78501; telephone:

210-682-2833.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under 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), hereinafter referred to as

the Act. Section 8e of the Act provides that whenever specified

commodities, including oranges, 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 oranges imported

into the United States are in most direct competition with oranges

grown in Texas regulated under Marketing Order No. 906, and has found

that the minimum grade and size requirements for imported oranges

should be the same as those established for oranges under Marketing

Order No. 906.

The 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 rule is not intended to have retroactive

effect. This rule would 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 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. 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. Thus, this action should

also have small entity orientation, and impact both small and large

business entities in a manner comparable to rules issued under such

marketing orders. There are about 20 importers of oranges who would be

subject to the proposed import grade requirement. Small agricultural

service firms, which include importers, have been defined by the Small

Business Administration (13 CFR 121.601) as those whose annual receipts

are less than $3,500,000. A majority of these importers may be

classified as small entities.

The minimum grade requirements specified in Sec. 944.312 (7 CFR

part 944) for oranges imported into the United States were in effect on

a continuous basis prior to their suspension on October 24, 1991 (56 FR

55983, October 31, 1991; 57 FR 2674, January 23, 1992). These

requirements were suspended to provide the USTR adequate time to review

contemplated changes in the orange import requirements needed to

reflect changes in the minimum grade requirements for Texas oranges in

Sec. 906.365 (7 CFR part 906) under Marketing Order No. 906.

This proposed rule would amend Sec. 944.312 (7 CFR 944.312; as

amended at 58 FR 69185, December 30, 1993; and corrected at 59 FR 4246,

January 31, 1994) to reinstate the minimum grade requirement of U.S.

No. 2 for oranges imported into the United States. The proposed minimum

grade requirement for imported oranges would be the same as the current

minimum grade requirement for oranges grown in Texas under Marketing

Order No. 906, and would be the same as the grade requirement in effect

under Sec. 944.312 just prior to the grade requirement's suspension on

October 24, 1991.

This proposed rule would also define the term ``oranges'', to

precisely identify the fruit covered by this import regulation.

This proposed rule also would change the minimum quantity exemption

under the import regulation to 400 pounds of fruit per day. The minimum

quantity exemption in the suspended import regulation was ten 7/10

bushel cartons (420 pounds). This proposed change would make the

quantity exempted in the import regulation comparable to the quantity

exempted from handling regulations under the marketing order for

oranges grown in Texas.

The minimum size requirement currently in effect under Sec. 944.312

requiring that oranges imported into the United States be at least 2\6/

16\ inches in diameter would remain in effect unchanged by this

proposed rule.

According to the Department of Agriculture's Foreign Agricultural

Service, U.S. fresh orange imports during the 1992/93 season were well

below the corresponding levels in the 1991/92 season, reflecting record

fresh-market domestic supplies. U.S. imports of fresh oranges during

the 1992/93 season (beginning November 1) through July 1993 totaled

10.4 million pounds, down 60 percent from the same period in 1991/92.

In the previous five seasons (1987/88-1991/92) fresh orange imports

varied greatly. In 1990/91, the late December 1990 freeze caused

extensive damage to orange crops in California, and resulted in an

unusually large quantity of imports for that season. From 1987/88

through 1991/92, U.S. imports of fresh oranges ranged from a high of

137.3 million pounds in the 1990/91 season, to a low of 17.2 million

pounds in 1988/89, with an average of 53.0 million pounds per season.

Fresh U.S. orange imports typically come from five countries, with

Mexico being the primary source followed by Morocco, Spain, Israel, and

the Dominican Republic. In the 1991/92 season, Mexico accounted for 5.8

million pounds or 17 percent of U.S. fresh orange imports. In

comparison, 1990/91 Mexico imports were 56.1 million pounds or 41

percent of U.S. fresh market orange imports. From 1987/88 through 1991/

92, U.S. fresh orange imports from Mexico ranged from a low of 2.2

million pounds (1988/89), to a high of 56.1 million pounds (1990/91),

with a five year average of 18.0 million pounds per season.

In accordance with section 8e of the Act, the USTR has concurred

with the issuance of this proposed rule.

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.

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

to reinstate the suspended orange import grade requirements and make

the specified changes in the orange import regulation, as hereinafter

set forth, to effectuate the declared policy of the Act.

A comment period of 15 days is deemed appropriate because the

orange import grade requirements need to be in place as soon as

possible, since oranges are currently being imported into the United

States.

List of Subjects in 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 part 944 is

proposed to be amended as follows:

PART 944--FRUITS; IMPORT REGULATIONS

1. The authority citation for 7 CFR part 944 continues to read as

follows:

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

2. Section 944.312 is revised to read as follows:

Sec. 944.312 Orange 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 oranges is prohibited unless such oranges

grade at least U.S. No. 2, and they are at least 2 \6/16\ inches in

diameter.

(b) The term ``oranges'' is defined as Citrus sinensis, Osbeck.

(c) The term ``importation'' means release from custody of the

United States Customs Service.

(d) Terms and tolerances pertaining to grade and size requirements,

which are defined in the United States Standards for Grades of Oranges

(Texas and States other than Florida, California, and Arizona) (7 CFR

51.680-714), shall be applicable herein.

(e) Any person may import up to 400 pounds a day of oranges exempt

from the requirements specified in this section.

(f) The Federal or Federal-State Inspection Service, Fruit and

Vegetable Division, Agricultural Marketing Service, United States

Department of Agriculture, is designated as the governmental inspection

service for certifying the grade, size, quality, and maturity of

oranges imported into the United States. Inspection by the Federal or

Federal-State Inspection Service with evidence thereof in the form of

an official inspection certificate, issued by the respective service,

applicable to the particular shipment of oranges, is required on all

such imports. The inspection and certification services will be

available upon application in accordance with the Regulations Governing

Inspection, Certification and Standards of Fresh Fruits, Vegetables,

and Other Products (7 CFR part 5l), and in accordance with the

regulation designating inspection services and procedure for obtaining

inspection and certification (7 CFR part 944.400).

(g) Any oranges which fail to meet the import requirements, and are

not being imported for purposes of consumption by charitable

institutions, distribution by relief agencies, or processing into

products; prior to or after reconditioning may be exported or disposed

of under the supervision of the Federal or Federal-State Inspection

Service with the costs of certifying the disposal of such oranges borne

by the importer.

(h) The grade, size, quality, and maturity requirements of this

section shall not be applicable to oranges imported for consumption by

charitable institutions, distribution by relief agencies, or processing

into products, but shall be subject to the safeguard provisions

contained in Sec. 944.350.

(i) The Secretary has determined that oranges imported into the

United States are in most direct competition with oranges grown in

Texas regulated under Marketing Order No. 906.

Dated: February 18, 1994.

Robert C. Keeney,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-4235 Filed 2-24-94; 8:45 am]

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