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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Docket Nos. FV93-905-3-FIR and FV93-944-2-FIR]

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida

and Imported Grapefruit; Relaxation of the Minimum Size Requirement for

Red Seedless Grapefruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a

final rule, without change, the provisions of two interim final rules

that relaxed the minimum size requirement to 3\5/16\ inches in diameter

(size 56) for domestic shipments of Florida red seedless grapefruit and

for red seedless grapefruit imported into the United States. This rule

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

red seedless grapefruit for the entire 1993-94 season.

EFFECTIVE DATE: April 18, 1994.

FOR FURTHER INFORMATION CONTACT: Gary D. Rasmussen, Marketing Order

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

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

5331; 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 final 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 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 is issuing this rule in conformance with Executive

Order 12866.

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. This action 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.

The Act provides that administrative proceedings must be exhausted

before parties may file suit in court. Under section 608(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 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.

There are about 100 Florida citrus handlers subject to regulation

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

tangelos grown in Florida, and about 11,000 producers of these citrus

fruits in Florida. There are approximately 25 importers of grapefruit

subject to the grapefruit import regulation. Small agricultural

producers have been defined by the Small Business Administration [13

CFR 121.601] as those having annual receipts of less than $500,000, and

small agricultural service firms are defined as those whose annual

receipts are less than $3,500,000. A minority of these handlers and a

majority of the producers and importers may be classified as small

entities.

This rule finalizes an interim final rule that relaxed the minimum

size requirement for domestic shipments of Florida red seedless

grapefruit to 3\5/16\ inches in diameter (size 56) through November 6,

1994. This rule will enable handlers to continue to ship size 56 red

seedless grapefruit for the entire 1993-94 season. The interim final

rule was published in the November 12, 1993, Federal Register [58 FR

59931], and provided 30 days for interested persons to file comments.

No comments were received.

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). Export requirements were not changed by the interim

final rule for Florida grapefruit.

The Citrus Administrative Committee (committee) met September 28,

1993, and unanimously recommended that the minimum size requirement for

domestic shipments of fresh red seedless grapefruit be relaxed. 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 reports that it expects that the fresh market demand

will be sufficient to permit the shipment of size 56 red seedless

grapefruit grown in Florida during the entire 1993-94 season. The

committee also expects that the overall external quality of the fruit

will be good. The committee also expects that more Florida red seedless

grapefruit will be shipped fresh this season than last season.

This rule is designed to enable Florida grapefruit shippers to

continue shipping size 56 red seedless grapefruit to the domestic

market consistent with current and anticipated strong demand in those

markets during the entire 1993-94 season, and to maximize shipments to

fresh market channels. This rule is based on the committee's assessment

of the maturity, flavor level, and size composition of this season's

Florida red seedless grapefruit crop. The Florida seedless grapefruit

shipping season normally begins in September and continues until the

following July.

Minimum size requirements are designed to provide fresh markets

with fruit of acceptable size and maturity, thereby maintaining

consumer confidence in fresh Florida grapefruit. This helps create

buyer confidence and contributes to stable marketing conditions. This

is in the interest of producers, packers, and consumers, and is

expected to increase returns to Florida grapefruit growers.

Under the order for Florida citrus, handlers may ship up to 15

standard packed cartons (12 bushels) of fruit per day, and gift

packages which are individually addressed and not for resale, under

exemption provisions. Fruit shipped for animal feed is also exempt

under specific conditions. In addition, 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 also finalizes an interim final rule that relaxed the

minimum size requirement for imported shipments of red seedless

grapefruit. The interim final rule was published in the November 12,

1993, Federal Register [58 FR 59933], and provided 30 days for

interested persons to file comments. No comments were received.

Section 8(e) of the Act requires that whenever grade, size,

quality, or maturity requirements are in effect for grapefruit under a

domestic marketing order, imported grapefruit must meet the same or

comparable requirements. The interim final rule for Florida grapefruit

relaxed the minimum size requirements for Florida red seedless

grapefruit. Therefore a corresponding change was needed in the

grapefruit import regulation.

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].

The interim final rule for imported grapefruit relaxed the minimum size

requirements for imported red seedless grapefruit to 3\5/16\ inches in

diameter (size 56) for the period November 8, 1993, through November 6,

1994.

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

with the issuance of this final rule as it pertains to imported

grapefruit.

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. The Department's view is that this rule will

have a beneficial impact on producers, handlers, and importers since it

will permit Florida grapefruit handlers to continue to make available

those sizes of fruit needed to meet consumer needs consistent with this

season's crop and market conditions.

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 matter presented, the

information and recommendations submitted by the committee, and other

information, it is found that the finalization set forth below will

tend to effectuate the declared policy of the Act.

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 amended as follows:

1. The authority citation for 7 CFR part 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. Accordingly, the interim final rule amending the provisions of

Sec. 905.306, which was published in the November 12, 1993, Federal

Register [58 FR 59931], is adopted as a final rule without change.

PART 944--FRUITS; IMPORT REGULATIONS

3. Accordingly, the interim final rule amending the provisions of

Sec. 944.106, which was published in the November 12, 1993, Federal

Register [58 FR 59933], is adopted as a final rule without change.

Dated: March 11, 1994.

Robert C. Keeney,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-6149 Filed 3-16-94; 8:45 am]

BILLING CODE 3410-02-P