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 No. FV94-905-4-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 an interim final rule

which relaxed 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. This rule enables handlers in Florida and

importers to continue to ship size 56 red seedless grapefruit for the

entire 1994-95 season.

EFFECTIVE DATE: March 20, 1995.

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-

2431.

SUPPLEMENTARY INFORMATION: This final 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, [[Page 8925]] 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 on 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

provides 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 has a beneficial impact on

[[Page 8926]] producers, handlers and importers since it permits

Florida grapefruit handlers and importers to make available those sizes

of fruit needed to meet consumer needs consistent with this season's

crop and market conditions.

The interim final rule concerning this action was published in the

November 8, 1994, Federal Register (59 FR 55571), with a 30-day comment

period ending December 8, 1994. No comments were received.

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) 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 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, the

information and recommendations submitted by the committee, and other

information, it is found that finalizing the interim final rule without

change, as published in the Federal Register (59 FR 55571) will tend to

effectuate the declared policy of the Act.

List of Subjects 7 CFR Parts 905 and 944

Grapefruit, Marketing agreements, Oranges, Reporting and

recordkeeping requirements, Tangelos, Tangerines.

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

FLORIDA

Accordingly, the interim final rule amending 7 CFR Part 905 which

was published at 59 55571 on November 8, 1994, is adopted as a final

rule without change.

PART 944--FRUIT; IMPORT REGULATIONS

The interim final rule amending 7 CFR Part 944 which was published

at 59 FR 55571 on November 8, 1994, is adopted as a final rule without

change.

Dated: February 8, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-3838 Filed 2-15-95; 8:45 am]

BILLING CODE 3410-02-P