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

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 from 3\9/16\ inches in diameter (size 48) 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

1996-97 season.

DATES: Effective on November 11, 1996; comments received by January 3,

1997 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, P.O. Box

96456, Washington, D.C. 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: Caroline C. Thorpe, Marketing

Specialist, Marketing Order Administration Branch, F&V, AMS, USDA, room

2525-S, P.O. Box 96456, Washington, D.C. 20090-6456; telephone: (202)

720-8139, Fax # (202) 720-5698; or 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: (941) 299-4770, Fax # (941) 299-5169. Small businesses may

request information on compliance with this regulation by contacting:

Jay Guerber, Marketing Order Administration Branch, Fruit and Vegetable

Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-

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

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement No. 84 and 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 rule is also issued under section 8e of the Act, which

provides that whenever certain 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.

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.

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 to review the Secretary's

ruling on the petition, provided an action 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 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

11,000 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.

[[Page 64252]]

This rule relaxes the minimum size for the period November 11,

1996, through November 9, 1997. This rule is expected to have a

positive impact on handlers and importers, as it will permit the

shipment of smaller size grapefruit, allowing the industry to meet

market needs. The relaxed minimum size requirement would be applied to

both small and large handlers and importers in the same way. This size

relaxation will enable Florida grapefruit shippers and importers of

grapefruit 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 1996-97 season, which will provide for the

maximization of shipments to fresh market channels and increase grower

returns. 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.

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 October 8, 1996, and unanimously

recommended this action.

This rule relaxes the red seedless grapefruit minimum size

requirement from size 48 (3\9/16\ inches diameter) to size 56 (3\5/16\

inches diameter) for the period November 11, 1996, through November 9,

1997. Absent this change, the size will revert back to size 48 (3\9/16\

inches diameter), on November 11, 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. According to both the National

Agricultural Statistics Service and the Committee, production of red

seedless grapefruit is expected to increase in comparison to last year

(1995-96). Both sources estimate an increase in production for this

season (1996-97) of about 10 percent to 31.5 million boxes and about 3

percent to 29 million boxes, respectively. 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 1996-97 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

1996-97 season, and will provide for the maximization of shipments to

fresh market channels.

There are some exemptions to these regulations provided under the

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

of fruit per day. Handlers may also ship unlimited gift packages of up

to 2 standard packed cartons of fruit per day, 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 Section 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 11, 1996, through November 9, 1997, 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.

During the last 5 years (1991-1995) imports to the United States of

fresh grapefruit averaged less than 2 percent of total domestic

consumption or less than 15,000 tons per year. Based on Departmental

data, domestic consumption averaged 766,000 tons per year for that

period. The major exporter of grapefruit to the United States was the

Bahamas. The Bahamas shipped an average of 95 percent of all grapefruit

imports to the United States during that time period. Other exporters

of grapefruit to the United States included; Mexico, Jamaica, Dominican

Republic, Netherlands, Israel, and Thailand.

In accordance with section 8e of the Act, the United States Trade

Representative has concurred with the issuance of this interim final

rule.

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 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 11, 1996, 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, 1996, and the season will be well underway by November 11,

1996; and (4) this rule provides a 30-day comment period and any

comments

[[Page 64253]]

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:

1. The authority citation for 7 CFR parts 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. 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)

----------------------------------------------------------------------------------------------------------------

* * * * * *

*

Grapefruit:

Seeded, red.................... Except 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.................. 11/13/95-11/10/96.......... U.S. No. 1....................... 3-5/16

11/11/96-11/9/97........... U.S. No. 1....................... 3-5/16

On and after 11/10/97...... U.S. No. 1....................... 3-9/16

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. Section 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)

----------------------------------------------------------------------------------------------------------------

Seeded............................. On and after 9/1/94........ U.S. No. 1....................... 3-12/16

Seedless, red...................... 11/13/95--11/10/96......... U.S. No. 1....................... 3-5/16

11/11/96--11/9/97.......... U.S. No. 1....................... 3-5/16

On and after 11/10/97...... U.S. No. 1....................... 3-9/16

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

----------------------------------------------------------------------------------------------------------------

* * * * *

Dated: November 27, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-30861 Filed 12-3-96; 8:45 am]

BILLING CODE 3410-02-P