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. FV95-905-3FIR]

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: 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

revising requirements 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

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the entire 1995-96 season. As required under section 8e of the

Agricultural Marketing Agreement Act of 1937, this final rule also

changes the citrus import regulation so that it conforms with the

requirements established under the Florida citrus marketing order.

EFFECTIVE DATE: March 4, 1996.

FOR FURTHER INFORMATION CONTACT: William G. Pimental, Marketing

Specialist, Southeast Marketing Field Office, Fruit and Vegetable

Division, AMS, USDA, P.O. 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,

P.O. Box 96456, Washington, D.C. 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 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.

The 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 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, 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 these handlers, producers, and importers may be classified

as small entities.

An interim final rule was issued on November 20, 1995, and

published in the Federal Register (60 FR 58497, November 28, 1995).

That rule provided a 30-day comment period which ended December 28,

1995. No comments were received.

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 final rule finalizes changes to regulations implemented

through an interim final rule that relaxed 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 finalizes a relaxation of 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.

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 Section 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 Section 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.

Finalizing 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

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permit Florida grapefruit handlers to continue 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 finalize the relaxation of 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 Section 944.106 (7 CFR

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

This rule finalizes the relaxation of 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 Section 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 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 finalizing this interim final rule without change, as

published in the Federal Register (60 FR 58497, November 28, 1995) as

hereinafter set forth, 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 above, 7 CFR parts 905 and 944 are

amended as follows:

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

FLORIDA

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

was published at 60 FR 58497 on November 28, 1995, is adopted as a

final rule without change.

PART 944--FRUITS; IMPORT REGULATIONS

Accordingly, the interim final amending 7 CFR part 944 which was

published at 60 FR 58497 on November 28, 1995, is adopted as a final

rule without change.

Dated: January 25, 1996.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 96-2066 Filed 1-31-96; 8:45 am]

BILLING CODE 3410-02-P