Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; and Import Regulations (Grapefruit); Relaxation of the Minimum Size Requirement for Red Grapefruit

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Docket No. FV95-905-3IFR]

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;

and Import Regulations (Grapefruit); Relaxation of the Minimum Size

Requirement for Red Grapefruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule makes a change in regulations under

the Florida citrus marketing order and grapefruit import regulations.

This rule relaxes the minimum size requirement for red seedless

grapefruit to 3\5/16\ inches in diameter (size 56). The Citrus

Administrative Committee (Committee), the agency that locally

administers the marketing order for oranges, grapefruit, tangerines,

and tangelos grown in Florida, unanimously recommended this change.

This change will enable handlers and importers to continue to ship size

56 red seedless grapefruit for the entire 1995-96 season.

DATES: Effective on November 13, 1995; comments received by December

28, 1995, will be considered prior to issuance of a 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, PO Box

96456, Washington, DC 20090-6456, FAX Number (202) 720-5698. 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: William G. Pimental, Marketing

Specialist, Southeast Marketing Field Office, Fruit and Vegetable

Division, AMS, USDA, PO Box 2276, Winter Haven, Florida 33883-2276;

telephone: 813-299-4770; or Caroline C. Thorpe, Marketing Specialist,

Marketing Order Administration Branch, F&V, AMS, USDA, Room 2522-S, PO

Box 96456, Washington, DC 20090-6456; telephone: (202) 720-8139.

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. The 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 interim final 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.

[[Page 58498]]

The Department of Agriculture 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 request 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 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 100 handlers of Florida citrus who are

subject to regulation under the marketing order and approximately

12,000 producers of citrus in the regulated area, and about 25

grapefruit importers. Small agricultural service firms are defined by

the Small Business Administration (13 CFR 121.601) as those having

annual receipts of less than $5,000,000, and small agricultural

producers are defined as those whose annual receipts are less than

$500,000. The majority of handlers, producers, and importers of Florida

citrus 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 designed 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.

This interim final rule invites comments on a change to the order's

rules and regulations to relax the minimum size requirement for red

seedless grapefruit allowing for the continued shipment of size 56

grapefruit. The Committee met September 14, 1995, and unanimously

recommended this action.

This rule relaxes the minimum size from size 48 (3\9/16\ inches

diameter) to size 56 (3\5/16\ inches diameter) for the period November

13, 1995 through November 10, 1996. Absent this change, the size will

revert back to size 48 (3\9/16\ inches diameter), on November 13, 1995.

Section 905.52, in part, 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

1995-96 season. The Committee believes that markets have been developed

for size 56 and that they should continue to supply those markets.

This size relaxation will enable Florida grapefruit shippers to

continue shipping size 56 red seedless grapefruit to the domestic

market. 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. This is

consistent with current and anticipated demand in those markets for the

1995-96 season, and will provide for the maximization of shipments to

fresh market channels.

There are several exemptions to these regulations provided under

the order. Handlers may ship up to 15 standard packed cartons (12

bushels) of fruit per day, and up to 2 standard packed cartons of fruit

per day in gift packages which are individually addressed and not for

resale. 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.

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 will relax the minimum size requirement under the domestic

handling regulations, a corresponding change to the import regulations

must also be considered.

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).

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 13, 1995, through November 10, 1996, to reflect the

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

The minimum grade and size requirements for Florida grapefruit are

specified in Sec. 905.306 (7 CFR 905.306) under Marketing Order No.

905.

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 these considerations, 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

[[Page 58499]]

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 rule until 30 days after publication in the

Federal Register because: (1) This rule relaxes the minimum size

requirements that would otherwise be in effect November 13, 1995, for

grapefruit grown in Florida, (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 requirements; (3) Florida grapefruit shipments began on

September 1, 1995, and the season will be well underway by November 13,

1995; and (4) this rule provides a 30-day comment period and any

comments received will be considered prior to 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:

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 for

grapefruit in paragraph (a), Table I, 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)

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* * * * * *

*

Grapefruit

Seeded, except red....................... On and after 9/01/94........ U.S. No. 1.................. 3\12/16\

Seeded, red.............................. On and after 9/01/94........ U.S. No. 1.................. 3\12/16\

Seedless, red............................ 11/24/94-11/12/95........... U.S. No. 1.................. 3\5/16\

11/13/95-11/10/96........... U.S. No. 1.................. 3\5/16\

On and after 11/11/96....... U.S. No. 1.................. \39/16\

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

* * * * *

PART 944--FRUITS; IMPORT REGULATIONS

4. In Sec. 944.106, paragraph (a) is revised to read as follows:

Sec. 944.106 Grapefruit import regulation.

(a) Pursuant to Section 8e (7 U.S.C. 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)

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

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

Seedless, red............................ 11/24/94-11/12/95........... U.S. No. 1.................. 3\5/16\

11/13/95-11/10/96........... U.S. No. 1.................. 3\5/16\

On and after 11/11/96....... U.S. No. 1.................. 3\9/16\

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

* * * * *

Dated: November 20, 1995.

Martha B. Ransom,

Acting Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-28925 Filed 11-27-95; 8:45 am]

BILLING CODE 3410-02-P