Specialty Crops; Import Regulations; Removal of Medjhool Dates From Import Requirements

SUMMARY: This proposal invites comments on removing the Medjhool

variety of dates from all import requirements established under the

Agricultural Marketing Agreement Act of 1937. Currently, whenever

grade, size, quality, or maturity requirements are in effect for dates

under a domestic marketing order, imported dates must meet the same or

comparable requirements. A marketing order is in effect for California

dates and specifies quality requirements for four varieties of dates.

However, all varieties of dates are currently subject to import

requirements. The Department of Agriculture (Department) has received

requests from representatives of an importer of Israeli dates and the

Embassy of Israel to remove Medjhool dates from import requirements.

The Medjhool date is a unique variety of date, commanding a premium

price, and is believed to not be in direct competition with the

varieties covered under the marketing order. Thus, the Department is

issuing this proposed rule to solicit public comment on removing

Medjhool dates from import requirements.

DATES: Comments must be received by June 10, 1996.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposal. Comments must be sent in triplicate to the

Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S,

P.O. 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: Maureen Pello, California Marketing

Field Office, Marketing Order Administration Branch, F&V, AMS, USDA,

2202 Monterey Street, suite 102B, Fresno, California 93721; telephone:

(209) 487-5901, Fax # (209) 487-5906; or Mark Kreaggor, Marketing

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

2522-S, P.O. Box 96456, Washington, DC 20090-6456: telephone: (202)

720-2431, Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This proposal is issued under section 8e of

the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C.

601-674), hereinafter referred to as the ``Act.'' Section 8e provides

that whenever certain specified commodities, including dates (other

than dates for processing), are regulated under a Federal marketing

order, imports of those commodities must meet the same or comparable

grade, size, quality, and maturity requirements as those in effect for

the domestically produced commodities.

The Department is issuing this rule in accordance with Executive

Order 12866.

This proposal has been reviewed under Executive Order 12778, Civil

Justice Reform. This rule is not intended to have retroactive effect.

This proposal will not preempt any State or local laws, regulations, or

policies, unless they present an irreconcilable conflict with this

rule.

There are no administrative proceedings 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 rule 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.

Import regulations issued under section 8e of the Act are based on

regulations established under Federal marketing orders for fresh

fruits, vegetables, and specialty crops, like dates. Thus, import

regulations also have a small entity orientation and impact both small

and large business entities in a manner comparable to rules issued

under such marketing orders.

There are approximately 35 importers of dates in the United States.

Three of those are importers of Medjhool dates and would be affected by

this rule. Small agricultural service firms, which include importers of

dates, 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 date importers may be classified as small entities.

This proposal invites comments on removing the Medjhool variety of

dates from all import requirements established under section 8e of the

Act. The Department is initiating this action based on requests

received from representatives of importers of Israeli dates and the

Embassy of Israel as well as its own review of the current situation

with respect to domestic date production and date imports.

As previously mentioned, section 8e of the Act requires that

whenever grade, size, quality, or maturity requirements are in effect

for dates under a domestic marketing order, imported dates (other than

dates for processing) must meet the same or comparable requirements. A

marketing order has been in effect for California dates since 1955 (7

CFR Part 987). The marketing order initially specified quality

requirements for three varieties of California dates--Deglet Noor,

Zahidi, and Khadrawy. In 1962, the order was amended to add the Halawy

variety of dates.

Also in 1962, section 8e of the Act was amended to cover dates

(other than dates for processing). Imported dates for processing are

not covered by section 8e and are not subject to grade, size, quality,

and maturity import requirements. At the time the import regulation was

initiated, it was determined that all varieties of imported

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packaged dates and dates for packaging and dates in retail packages

would compete with dates produced domestically. Thus, since that time,

imported packaged dates and dates for packaging for sale in the retail

market have been required to meet quality requirements comparable to

those specified under the California date marketing order and the

import regulation currently applies to all varieties of dates.

The Department recently received requests from representatives of

an importer of Israeli dates and the Embassy of Israel to remove the

Medjhool variety of dates from the import regulation. The

representatives of the Israeli importer expressed concerns that

domestic Medjhool dates are not subject to quality requirements while

all imported dates are subject to specific requirements.

The Medjhool date is a unique variety--a much larger date than

other varieties and is thus easily distinguishable. Given this unique

characteristic, the Medjhool date commands a premium price and is

believed to not be in direct competition with the four varieties of

dates covered under the marketing order.

In looking at the domestic market, Medjhool dates were not produced

in significant quantities in the United States when the marketing order

was promulgated in 1955. Since that time, plantings of Medjhool dates

have increased to account for over 15 percent of the bearing acreage of

dates in California. In comparing the production of the Medjhool

variety of dates with the four varieties covered under the marketing

order, Medjhool dates now comprise about 20 percent (or 9 million

pounds) of the total production (about 45 million pounds). With the

increase in Medjhool production in recent years, the domestic date

industry has considered amending the marketing order to cover Medjhool

dates. However, at this time, no formal action has been taken and

domestic Medjhools remain unregulated.

In looking at data regarding imported dates, in the 1960's when the

date import regulation was initiated, few if any Medjhool dates were

imported into the United States. At that time most of the imported

dates came from Iraq and Iran and were of the Sayir variety. Sayir

dates and other varieties imported into this country are similar in

appearance to the Deglet Noor, Zahidi, Halawy and Khadrawy varieties

regulated under the marketing order. During the past five years (1990-

1994), about 13 million pounds of dates were imported into this country

annually, mostly coming from Pakistan (over 65 percent). Medjhools

account for a relatively small percentage of imported dates, with most

of the imported Medjhools coming from Mexico and a small amount coming

from Israel. Mexican and Israeli dates account for about 3 percent and

4 percent, respectively, of total U.S. date imports. Of the total date

import inspections from Mexico over the last 5 years, about 54 percent

were of the Medjhool variety. About 1 percent of the date import

inspections from Israel during this same period were Medjhools.

In response to these requests, the Department is issuing this

proposed rule to provide interested persons the opportunity to comment

on removing Medjhool dates from import requirements. All other

varieties of imported dates would continue to be subject to import

requirements. Such other varieties are not as easily distinguishable as

Medjhools and are believed to be in direct competition with the

varieties regulated under the marketing order.

Thus, it is proposed that section 999.1 of the Code of Federal

Regulations (CFR), which specifies the import regulation for dates, be

amended to exclude Medjhool dates.

To exclude dates of the Medjhool variety from the terms of the date

import regulations, a new definition for dates is added to paragraph

(a). The new definition defines ``dates'' as all varieties of dates,

except dates of the Medjhool variety.

In addition, minor changes in the current definitions for the terms

``Fruit and Vegetable Division'', ``USDA inspector'', and

``Importation'' are proposed to be made to reflect changes in the names

of Federal agencies referred to in the definitions.

The definition of ``Fruit and Vegetable Division'' refers to the

``Consumer and Marketing Service''. That agency is now called the

``Agricultural Marketing Service''. The definition of ``USDA

inspector'' refers to inspectors of the ``Processed Products

Standardization and Inspection Branch''. The name of the Branch is now

the ``Processed Products Branch''. Finally, the definition of

``Importation'' references the ``United States Bureau of Customs''.

This agency is now called the ``United States Customs Service''.

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

Representative has concurred with issuance of this proposed rule.

This rule would relax requirements currently in effect for date

importers and would not impose any additional costs on affected

importers. Thus, the Administrator of the AMS has determined that this

action would not have a significant economic impact on a substantial

number of small entities.

The information collection requirements under the date import

regulation have been previously approved by the Office of Management

and Budget (OMB) under the provisions of the Paperwork Reduction Act of

1995 (Pub. L. 104-13) and have been assigned OMB number 0581-0077.

A 60-day comment period is provided to allow interested persons to

respond to this proposal. All written comments timely received will be

considered before a final determination is made on this matter.

List of Subjects in 7 CFR Part 999

Dates, Filberts, Food grades and standards, Imports, Nuts, Prunes,

Raisins, Reporting and recordkeeping requirements, Walnuts.

For the reasons set forth in the preamble, 7 CFR part 999 is

proposed to be amended as follows:

1. The authority citation for 7 CFR part 999 continues to read as

follows:

Authority: 7 U.S.C. 601-674.

PART 999--SPECIALTY CROPS; IMPORT REGULATIONS

2. In Sec. 999.1, paragraphs (a) (1) through (10) are redesignated

as paragraphs (a) (2) through (11), a new paragraph (a) (1) is added,

and new paragraphs (a) (8), (9), and (11) are revised to read as

follows:

Sec. 999.1 Regulation governing the importation of dates.

(a) Definitions. (1) Dates means all varieties of dates, except

dates of the Medjhool variety.

* * * * *

(8) Fruit and Vegetable Division means the Fruit and Vegetable

Division of the Agricultural Marketing Service, United States

Department of Agriculture, Washington, D.C. 20250.

(9) USDA inspector means an inspector of the Processed Products

Branch, Fruit and Vegetable Division or any duly authorized employee of

the USDA.

* * * * *

(11) Importation means release from the custody of the United

States Customs Service.

* * * * *

Dated: April 2, 1996.

Eric M. Forman,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 96-8718 Filed 4-8-96; 8:45 am]

BILLING CODE 3410-02-P