Regulations Issued Under the Export Grape and Plum Act; Exemption From Size Regulations for Black Corinth Grapes

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 35

[Docket No. FV-96-35-1 FIR]

Regulations Issued Under the Export Grape and Plum Act; Exemption

From Size Regulations for Black Corinth Grapes

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a

final rule the provisions of an interim final rule exempting the Black

Corinth variety of grapes from the minimum bunch and berry size

requirements issued for grapes under the Export Grape and Plum Act.

This change expands the markets for this variety of grapes and

increases their fresh utilization. This rule was recommended by the

California Grape and Tree Fruit League after the proposal had been

presented at industry meetings of growers and handlers.

EFFECTIVE DATE: May 21, 1997.

FOR FURTHER INFORMATION CONTACT: Dennis L. West, Northwest Marketing

Field Office, Marketing Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, 1220 S.W. Third Avenue, room 369,

Portland, Oregon 97204-2807; telephone: (503) 326-2724 or FAX (503)

326-7440; or William R. Addington, Marketing Order Administration

Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room

2523-S, Washington, DC 20090-6456; telephone: (202) 720-2412 or 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, 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 authority of the

Export Grape and Plum Act, as amended, [7 U.S.C. 591-599], hereinafter

referred to as the ``Act.'' This rule amends ``Regulations Issued Under

Authority of the Export Grape and Plum Act'' [7 CFR Part 35].

The 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. 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 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. In the

United States there are approximately 250 handlers of table grapes that

are subject to regulations under the authority of the Export Grape and

Plum Act, and approximately 1300 grape producers. Small agricultural

service firms, which include handlers of grapes, have been 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 grape handlers and producers regulated under

the Export Grape and Plum Act may be classified as small entities.

Black Corinth grapes represent less than one percent of all grapes

grown in the United States. Supplies of this variety are provided by

many small growers located in California and Arizona who are prepared

to ship grapes into fresh markets abroad. As the export markets develop

for Black Corinth grapes, economic opportunities for small growers,

marketers, and exporters are expected to improve. Therefore, the AMS

has determined that this action will not have a significant economic

impact on a substantial number of small entities.

Section 35.11 of the ``Regulations issued under authority of the

Export Grape and Plum Act'' establishes minimum size and quality

requirements for export shipments of any variety of vinifera species

table grapes. Prior to the issuance of the interim final rule, export

shipments of grapes being shipped to Japan, Europe, or Greenland were

required to meet a minimum grade of U.S. Fancy Table as specified in

the U.S. Standards for Grades of Table Grapes (7 CFR Part 51, sections

51.880-51.992), except that the minimum bunch size shall be one-half

pound. Table grapes shipped to countries other than Japan, Europe,

Greenland, Canada, or Mexico were required to meet the requirements of

U.S. No.1 Table, except that the minimum bunch size shall be one-fourth

pound. (Shipments to Canada and Mexico are currently not regulated

under this part.) The U.S. Fancy Table grade includes a requirement for

unlisted varieties (such as Black Corinth), that 90 percent of the

berries, by count, in each bunch shall be at least ten-sixteenths of an

inch in diameter. Similarly, the U.S. No. 1 Table grade includes a

requirement for unlisted varieties (such as Black Corinth), that 75

percent of the berries, by count, shall be at least nine-sixteenths of

an inch in diameter.

The Board of Directors of the California Grape and Tree Fruit

League (Board), which represents a substantial portion of the fresh

table grape industry, unanimously recommended that the Black Corinth

variety of grapes be exempted from the minimum bunch and berry size

requirements established for export shipments.

The Board advised that a change is needed because the Black Corinth

variety (sometimes referred to as Zante Currants) are

characteristically of high quality but of very small bunch and berry

size. The small size prevents this variety from meeting the minimum

size requirements established for export shipments.

Traditionally, this variety of grapes had been dried for use as

raisins. As

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oversupply conditions occurred in recent years for this variety,

handlers within the industry were successful in developing fresh

outlets. The variety received good consumer acceptance, primarily

because of its unique size and sweetness.

Exempting the Black Corinth variety of grapes from the minimum

bunch and berry size requirements for export shipments enables handlers

to further expand their markets and increase fresh utilization. This

improves the marketing of these varieties and increases returns to

producers.

The interim final rule was issued on October 17, 1996, and

published in the Federal Register (61 FR 54081, October 17, 1996), with

an effective date of October 18, 1996. That rule amended Sec. 35.11

Minimum requirements under regulations in effect under the Act. That

rule provided a 30-day comment period which ended November 18, 1996. No

comments were received.

After consideration of all relevant material presented, the

information and recommendations submitted by the Board, and other

information, finalizing the interim final rule, without change, as

published in the Federal Register (61 FR 54081, October 17, 1996) is

appropriate.

It is also found that good cause exists for not postponing the

effective date of this rule until 30 days after publication in the

Federal Register (5 U.S.C. 553) because: (1) This action continues a

relaxation of the requirements for export shipments of Black Corinth

grapes; (2) the Board unanimously recommended this rule at a public

meeting and all interested persons had an opportunity to provide input;

(3) shipments of the Black Corinth variety of grapes have already

begun; (4) handlers and producers of the Black Corinth variety of

grapes are aware of this rule and they need no additional time to

comply with the relaxed requirements; and (5) a 30-day comment period

was provided for in the interim final rule and none were received.

List of Subjects in 7 CFR Part 35

Administrative practice and procedure, Exports, Grapes, Plums,

Reporting and record keeping requirements.

For the reasons set forth in the preamble, 7 CFR part 35 is amended

as follows:

PART 35--EXPORT GRAPES AND PLUMS

Accordingly, the interim final rule amending 7 CFR part 35 which

was published at 61 FR 54081 on October 17, 1996, is adopted as a final

rule without change.

Dated: May 14, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97-13128 Filed 5-19-97; 8:45 am]

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