Regulations Issued Under the Export Apple and Pear Act; Relaxation of Grade Requirements for Apples and Pears Shipped to Pacific Ports of Russia

SUMMARY: This document relaxes the minimum grade requirements issued

under the Export Apple and Pear Act for U.S.-grown apples and pears

shipped to Pacific ports of Russia. Container marking provisions also

are relaxed for such shipments. These changes are designed to develop

Eastern Russia as an export market for apples and pears. This rule was

recommended by the Northwest Horticultural Council (Council), an

organization representing the Northwest fruit industry.

DATES: Effective September 27, 1996. Comments must be received by

October 28, 1996.

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 # (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: Dennis L. West, Marketing Specialist,

Northwest Marketing Field Office, Marketing Order Administration

Branch, Fruit and Vegetable Division, AMS, USDA, 1220 SW Third Avenue,

room 369, Portland, Oregon 97204-2807; telephone: (503) 326-2724, Fax #

(503) 326-7440; or William R. Addington, Marketing Specialist,

Marketing Order Administration Branch, Fruit and Vegetable Division,

AMS, USDA, PO Box 96456, room 2523-S, Washington, DC 20090-6456;

telephone: (202) 720-2412, Fax # (202) 720-5698. Small businesses may

request information on compliance with this regulation by contacting:

Jay Guerber, Marketing Order Administration Branch, Fruit and Vegetable

Division, AMS, USDA, PO Box 96456, room 2523-S, Washington, DC 20090-

6456; telephone: (202) 720-2491, Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This interim final rule is issued under

authority of the Export Apple and Pear Act, as amended, (7 U.S.C. 581-

590), hereinafter referred to as the ``Act.'' This rule will amend

``Regulations Issued Under Authority of the Export Apple and Pear Act''

(7 CFR part 33).

The Department of Agriculture (Department) is issuing this rule in

conformance with Executive Order 12866.

This rule has been reviewed under Executive Order 12988, 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. 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 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.

The Act and regulations effective thereunder apply to exporters and

export carriers of apples and pears. In the United States, there are

approximately 450 firms which pack and export apples and 300 firms

which pack and export pears that are potentially subject to regulations

under the authority of the Act. Small agricultural service firms, which

include firms that pack and export apples and pears, have been defined

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

annual receipts of less than $5,000,000. The majority of apple and pear

exporters regulated under the Act may be classified as small entities.

This interim final rule invites comments on changes to the regulations

currently issued under the Act. This rule relaxes the minimum grade

requirements issued under the Act for U.S.-grown apples and pears only

shipped to Pacific ports of Russia. Container marking provisions also

are relaxed for such shipments. This rule will provide all exporters

additional flexibility in marketing apples and pears of different

grades and quality in Russian port cities and areas along the Pacific

Ocean. These changes are designed to develop export markets for apples

and pears in these areas. This rule does not preclude shipments of

apples and pears of higher than the minimum quality from being shipped

to Russian Pacific ports. This should benefit both large and small

exporters of apples and pears. Therefore, the AMS has determined that

this action will not have a significant economic impact on a

substantial number of small entities. Interested persons are invited to

submit information on the regulatory and informational impacts of this

action on small businesses.

Section 33.10 of the ``Regulations Issued Under Authority of the

Export Apple and Pear Act'' establishes minimum grade and container

marking requirements for export shipments of apples and pears.

Currently, export shipments of apples must meet a minimum grade of U.S.

No. 1 or U.S. No. 1 Early as specified in the United States Standards

for Apples (7 CFR part 51, Secs. 51.300-51.323). Exports of summer and

fall pears must meet a minimum grade of U.S. No. 2 as specified in the

United States Standards for Summer and Fall Pears (7 CFR part 51,

Secs. 51.1260-51.1280). Exports of winter pears also must meet the

minimum grade of U.S. No. 2 as specified in the United States Standards

for Winter Pears (7 CFR part 51, Secs. 51.1300-51.1323). Additional

restrictions for apple maggot and San Jose scale apply to both apples

and pears.

[[Page 50422]]

This rule reduces the minimum grade requirements as follows.

The minimum grade for fresh apples exported to Russian Pacific

ports is reduced to U.S. Utility grade (7 CFR part 51, Sec. 51.303) or

U.S. No. 1 Hail (7 CFR part 51, Sec. 51.302(b)) for apples damaged by

hail.

The minimum requirements for summer and fall pears exported to

Russian Pacific ports are listed in the regulatory text of this

regulation. The requirements provide that the pears should be of one

variety that are mature, hand picked, clean, sound and free from hard-

end; and free from serious damage caused by broken skin, insects,

disease, hail marks, limbrubs, heavy russet, or other means; and shall

not be so excessively elongated or flattened as to preclude the cutting

of one good half. The requirements also include necessary definitions

and explanations of some provisions and a list of tolerances which are

applied to each lot at the time of packing.

Finally, the minimum requirements for winter pears exported to

Russian Pacific ports also are listed in the regulatory text of this

regulation. The requirements provide that the pears be of one variety

which are mature, hand picked, clean, sound, not very seriously

misshapen, free from black end, free from damage caused by hard end,

broken skins, and free from serious damage caused by cork spot or

bruises. ``Very seriously misshapen'' means that the pear is

excessively flattened, elongated for the variety, or is constricted or

deformed so it will not cut one good half or two fairly uniform

quarters. The requirements also include necessary definitions and

explanations of some provisions and a list of tolerances which are

applied to each lot at the time of packing.

Handlers may ship apples and pears of higher grade quality than the

minimum requirements established in this regulation.

Paragraph (d)(3) of Sec. 33.10 Minimum requirements of the

implementing regulations provides that each package of apples and pears

be marked plainly and conspicuously with the name of the U.S. grade or

the name of a State grade applicable to the product being exported.

However, the new minimum requirement for pears is not equivalent to a

U.S. grade, as required by paragraph (d)(3) and, thus, cannot be marked

on containers. Therefore the Department has determined that the marking

requirements of paragraph (d)(3) should not apply to shipments of pears

shipped to Pacific ports of Russia meeting minimum quality

requirements. This regulation adds a proviso to paragraph (d)(3).

Apples shipped according to the minimum grade standard in this

regulation are not exempt from the grade marking provisions and must be

properly marked pursuant to paragraph (d).

The additional restrictions for apple maggot and San Jose scale

continue to apply to apples and pears shipped to any foreign

destination.

The Council, an organization that represents a substantial portion

of the fruit industry in the Northwest States of Oregon, Washington,

and Idaho, recommended these changes in the current export regulations.

The Council advises that a change in requirements is needed to

develop export markets for apples and pears to Pacific ports of Russia.

According to the Council, exporters indicate that there is a demand in

this relatively new export market of Eastern Russia for apples and

pears of a lower grade than the current requirements allow. This change

is expected to increase sales opportunities in a market willing to

accept apples and pears that are lower in overall quality and less

uniform in appearance than most export markets will accept.

The Council reports that weather and growing conditions are

expected to adversely affect the appearance and quality of a

significant portion of the 1996 pear crop. The Council believes this

change will facilitate market development efforts for apples and pears

to Pacific ports of Russia. Apples and pears which are not shipped for

fresh consumption in either domestic or foreign markets are usually

disposed of in processing outlets, such as juice. Processing outlets

are not normally as profitable as fresh market outlets.

The Council and other industry groups conduct periodic meetings and

consider recommendations for modification, suspension, or termination

of the regulatory requirements under the Act. These meetings are open

to the public, and interested persons are given an opportunity to

express their views. The Department reviews recommendations and

information submitted by these and other industry groups as well as

other available information and determines whether such modification,

suspension, or termination of the regulatory requirements would tend to

effectuate the purposes of the Act.

After consideration of all relevant material presented, including

the Council's recommendation, and other available information, it is

found that this interim final rule, as 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 the rule until 30 days after publication in the Federal Register

because: (1) This rule relaxes the current grade requirements for

apples and pears shipped to Pacific ports of Russia; (2) exporters have

indicated that sales opportunities exist in Eastern Russia and that

they would like to take advantage of these opportunities as soon as

possible; (3) apples and pears are shipped throughout the year, and

this rule should be in effect promptly so exporters can make marketing

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

comments received will be considered prior to finalization of this

rule.

List of Subjects in 7 CFR Part 33

Administrative practice and procedure, Exports, Apples, Pears,

Reporting and recordkeeping requirements.

For the reasons set forth in the preamble, 7 CFR part 33 is amended

as follows:

PART 33--EXPORT APPLES AND PEARS

1. The authority citation for 7 CFR part 33 continues to read as

follows:

Authority: Sec. 7, 48 Stat. 124; 7 U.S.C. 587.

2. In Sec. 33.10, paragraph (a), (b), and (d) are revised to read

as follows:

Sec. 33.10 Minimum requirements.

* * * * *

(a) Apples grade at least U.S. No. 1 or U.S. No. 1 Early: Provided,

That apples for export to Pacific ports of Russia shall grade at least

U.S. Utility or U.S. No. 1 Hail for hail-damaged apples, as specified

in the United States Standards for Apples (Secs. 51.300-51.323 of this

chapter): Provided further, That apples for export to any foreign

destination do not contain apple maggot, and do not have more than 2

percent, by count, of apples with apple maggot injury, nor more than 2

percent, by count, of apples infested with San Jose scale or scale of

similar appearance;

(b) Pears grade at least U.S. No. 2 as specified in the United

States Standards for Summer and Fall Pears, such as Bartlett, Hardy,

and other similar varieties (Secs. 51.1260-51.1280 of this chapter), or

in the United States Standards for Winter Pears, such as Anjou, Bosc,

Comice, and other similar

[[Page 50423]]

varieties (Secs. 51.1300-51.1323 of this chapter), do not contain apple

maggot, and do not have more than 2 percent, by count, of apples with

apple maggot injury, nor more than 2 percent, by count, of apples

infested with San Jose scale or scale of similar appearance: Provided,

That the minimum quality requirements for pears exported to Pacific

ports of Russia are as follows:

(1) Summer and fall pears shall be of one variety which are mature,

hand picked, clean, sound and free from hard-end; and free from serious

damage caused by broken skin, insects, disease, hail marks, limbrubs,

heavy russet, or other means; and shall not be so excessively elongated

or flattened as to preclude the cutting of one good half. Broken skin

must not exceed 1/4 inch in diameter. The following definitions shall

apply to all varieties:

Clean means reasonably free from dust, dirt, or honey dew.

Free from serious damage means defects when taken singly or

collectively shall not seriously affect the edible or culinary value of

the fruit.

Hand picked means that pears do not show evidence of rough handling

or of having been on the ground.

Hard-end means pears which show an abnormally yellow or green color

at the blossom end or an abnormally smooth rounded base with little or

no depression at the calyx, or if the flesh near the calyx is

abnormally dry and tough or woody. Pears affected by hard-end shall be

considered defects. Rat-tail shaped pears, or second bloom pears that

are tough or ridged shall be considered defects. At the time of

packing, not more than 10 percent, by count, of any lot may be below

the requirements of the grade, and not more than one-tenth of this

amount shall be allowed for decay and/or breakdown. Slight

imperfections which are not discernible in good commercial sorting

practice shall not be considered as defects. Small inconspicuous skin

breaks of less than 1/8 inch in diameter or depth shall not be

considered as damage, and not more than 15 percent of the pears in any

container may have not more than one skin break from 1/8 inch to 3/16

inch, inclusive, in diameter or depth. After pears have been placed in

storage, or in transit; scald, breakdown, decay, bitter pit, or

physical injury affecting keeping quality, which may have developed or

may only have become evident after pears are packed, are defined as

applying to condition rather than to grade. Pears also shall not

contain apple maggot, and shall not have more than 2 percent, by count,

of pears with apple maggot injury, nor more than 2 percent, by count,

of pears infested with San Jose scale or scale of similar appearance;

Mature means having reached the stage of maturity which will insure

a proper completion of the ripening process. Firmness of the flesh

shall be considered only in connection with other factors to determine

the degree of maturity. Sound means that pears at time of packing are

free from visible defects such as decay, breakdown, scald, bitter pit,

or physical injury affecting keeping quality. The following conditions

shall not be considered serious damage: healed insect depressions or

other surface blemishes which do not prevent the cutting of one good

half;

(2) Winter pears shall be of one variety which are mature, hand

picked, clean, sound, not very seriously misshapen, free from black

end, free from damage caused by hard end, broken skins, and from

serious damage caused by cork spot or bruises. The following

definitions shall apply to all varieties:

Black end is evidenced by an abnormally deep green color around the

calyx, or black spots usually occurring on one-third of the surface

nearest to the calyx, or by an abnormally shallow calyx cavity.

Clean means free from excessive dirt, dust, spray residue, or other

foreign material.

Damage by hard end means any injury or defect which materially

affects the appearance, edible or shipping quality. Any pear with one

skin break larger than \3/16\ inch in diameter or depth, or with more

than one skin break \1/8\ inch or larger in diameter or depth, shall be

considered damaged, and scored against the grade tolerance.

Handpicked means that the pears do not show evidence of having been

on the ground.

Hard end is an abnormal yellow color at the blossom end, or an

abnormally smooth, rounded base with little or no depression at the

calyx, or if the flesh near the calyx is abnormally dry and tough or

woody.

Mature means that the pear has reached the stage of maturity which

will insure the proper completion of the ripening process.

Overripe means dead ripe, very mealy or soft, past commercial

utility.

Serious damage by cork spot is when more than two cork spots are

visible externally, or when the visible external injury affects an

aggregate area of more than \1/2\ inch in diameter. Serious damage by

bruising is bruising which seriously affects the appearance, edible or

shipping quality. For a tolerance of 10 percent or more, individual

packages in any lot may contain not more than one and one-half times

the tolerance specified, except that when the package contains 15

specimens or less, individual packages may contain not more than double

the tolerance specified. For a tolerance of less than 10 percent,

individual packages in any lot may contain not more than double the

tolerance specified, provided at least one specimen which does not meet

the requirements shall be allowed in any one package. Pears also shall

not contain apple maggot, and shall not have more than 2 percent, by

count, of pears with apple maggot injury, nor more than 2 percent, by

count, of pears infested with San Jose scale or scale of similar

appearance;

* * * * *

(d) Each package of apples or pears is marked plainly and

conspicuously with:

(1) the name and address of the grower, packer, or domestic

distributor: Provided, That the name of the foreign distributor may be

placed on consumer unit packages shipped in a master container if such

master container is marked with the name and address of the grower,

packer, or domestic distributor;

(2) the variety of the apples or pears;

(3) the name of the U.S. grade or the name of a state grade if the

fruit meets each minimum requirement of a U.S. grade specified in this

section; and Provided further, That the marking requirements of this

paragraph shall not apply to pears meeting minimum quality requirements

of this section and shipped to Pacific ports of Russia.

Dated: September 20, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-24663 Filed 9-25-96; 8:45 am]

BILLING CODE 3410-02-P