Removal of U.S. Grade Standards and Other Selected Regulations

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 29, 31, 32, 36, 51, 52, 53, 54, 56, 58, 70, and 160

[Docket Number FV-95-303]

Removal of U.S. Grade Standards and Other Selected Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture is adopting two interim final

rules concerning removal of voluntary U.S. grade standards and other

selected regulations from the Code of Federal Regulations (CFR). This

action is part of the National Performance Review Program to eliminate

unnecessary regulations and improve those that remain in force.

EFFECTIVE DATE: July 30, 1998.

FOR FURTHER INFORMATION CONTACT: Eric Forman, Associate Deputy

Administrator, Fruit and Vegetable Programs, USDA, AMS, Room 2085-S,

P.O. Box 96456, Washington, D.C. 20090-6456, (202) 690-0262.

SUPPLEMENTARY INFORMATION: An interim final rule was published in the

Federal Register on December 4, 1995. That rule removed most of the

voluntary U.S. grade standards and other selected regulations covering

a number of agricultural commodities (dairy products, tobacco, wool,

mohair, fresh and processed fruits and vegetables, livestock, meats and

meat products, eggs, and poultry and rabbit products) from the CFR. A

second interim final rule was published on August 13, 1997 which:

removed from the CFR those standards that had been retained pending

completion of rulemaking at the time an interim final rule was

published on December 4, 1995 which removed most of the U.S. standards

from the CFR; reinstated the U.S. standards for Wisconsin Cigar-Binder

Tobacco, and regulations related to the purchase of samples of wool and

of mohair grades; and, lastly added a new part titled ``Procedures by

Which the Agricultural Marketing Service Develops, Revises, Suspends,

or Terminates Voluntary Official Grade Standards.'' These procedures

were first discussed in the original interim rule and further developed

and published in the August 13, 1997 interim final rule providing

specifics as to the procedures that AMS will follow when developing,

revising, suspending, or terminating voluntary U.S. grade standards.

The Department is making final the December 4, 1995, interim final

rule, and the August 13, 1997, interim final rule. This regulatory

action is being taken as part of the National Performance Review

program to eliminate unnecessary regulations and improve those that

remain in force.

Executive Order 12866

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

conformance with Executive Order 12866.

Executive Order 12988

This rule has been reviewed under Executive Order 12988, Civil

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

with respect to any State or local laws, regulations, or policies

unless they present an irreconcilable conflict with this rule. This

rule is not intended to have retroactive effect. There are no

administrative procedures which must be exhausted prior to any judicial

challenge to this rule or the application of its provisions.

Effect on Small Entities

This action was reviewed under the Regulatory Flexibility Act (RFA)

(5

[[Page 35501]]

U.S.C. 601 et seq.). The Administrator of AMS has determined that this

action will not have a significant economic impact on a substantial

number of small entities. The purpose of the RFA is to fit regulatory

actions to the scale of businesses subject to such actions in order

that small businesses will not be unduly or disproportionately

burdened.

The United States standards issued or revised pursuant to the

Agricultural Marketing Act, and issued thereunder, are administered

under the direction of the Administrator of AMS and, as in the past,

will be based on input from interested parties, including various

industries which are mostly comprised of small entities as defined by

the Small Business Administration (13 CFR 121.601). Other users of the

various standards are government agencies including USDA's Farm

Services Agency and the Foreign Agricultural Service.

Removal of voluntary standards and other selected regulations

covering a number of agricultural commodities from the CFR is expected

to benefit the affected industries because it will provide for more

timely improvement in the standards in accordance with the published

procedures. Notice of any actions as to the development, revision,

suspension or termination of U.S. standards will be published in the

Federal Register with request for comment to ensure that all interested

parties, including small businesses as well as the general public, have

an opportunity to have their views considered regarding any actions

taken concerning the U.S. grade standards. This rule will specify a new

CFR part titled ``Procedures by Which the Agricultural Marketing

Service Develops, Revises, Suspends, or Terminates Voluntary Official

Grade Standards.'' These procedures reflect the steps that were

discussed in the original interim final rule concerning the procedures

that AMS will follow when developing, revising, suspending, or

terminating U.S. grade standards.

Paperwork Reduction Act

In accordance with the provisions of the Paperwork Reduction Act,

the information collection requirements contained in the provisions

have been previously approved by the Office of Management and Budget.

Background

The Secretary of Agriculture is authorized under various statutes

to provide various services to provide Federal grading/certification

services and to develop and establish efficient marketing methods and

practices of agricultural commodities. For more than 75 years, AMS has

facilitated the marketing of agricultural commodities by developing

official U.S. grade standards which provide a uniform language that may

be used to describe the characteristics of more than 450 commodities as

valued by the marketplace. These standards are widely used in private

contracts, government procurement, marketing communication and, for

some commodities, consumer information.

Although use of the U.S. standards is usually voluntary, they have

through the years been promulgated as regulations and codified in the

CFR. Rapid changes in consumer preferences, together with associated

changes in commodity characteristics, processing technology, and

marketing practices have often out paced the revision of existing or,

the issuance of new regulations. As a result, the marketplace has been

in some instances burdened with outdated trading language. The

President's regulatory review initiative provided the impetus to

develop new approaches to meet more effectively the needs of U.S.

industry, government agencies, and consumers by reducing the regulatory

burden. As part of this initiative, AMS determined that certain

regulations that were in the CFR which could be administered under the

authority of AMS should be removed from the CFR.

With this objective, on December 4, 1995, AMS published an interim

final rule with a request for comments that removed most of the

voluntary U.S. standards and related regulations from the CFR. That

action included all of the standards except those that at the time were

in rulemaking, incorporated by reference in marketing orders/agreements

appearing at 7 CFR Parts 900 through 999, or those used to implement

government price supports. Those grade standard regulations have

remained in the CFR, even though the text will also be available as AMS

standards along with all other grade standards.

On March 11, 1996, in response to requests by representatives of

the dairy and meat industries, USDA published a notice in the Federal

Register that it would reopen and extend the comment period until July

10, 1996. The industry association comments asked for more time to

evaluate how the changes AMS was initiating would impact their

respective industries.

Twenty one comments were received from interested persons in

connection with the interim final rule. Those commenting included

representatives of trade associations, a food processor, a state

department of agriculture and other interested persons. The majority of

comments were commodity specific and were addressed on an AMS program

basis with regard to the appropriate commodity topic.

One comment expressed its concern about the process AMS would

follow with regard to drafting new or revising existing standards and

wanted assurance that AMS would continue to solicit input from industry

when developing and revising U.S. grade standards.

Taking into account the various comments received in response to

the request for comment on the December 4, 1995 interim final rule, AMS

prepared a second interim final rule which was published in the Federal

Register on August 13, 1997. That rule addressed by Program and

commodity the specific concerns or comments from industry.

One comment was received in response to the August 13, 1997,

interim final rule. The American Meat Institute stated that their ``* *

* initial reservations to the December 1995 version of the rule

regarding the ability of industry to fully participate in the

development of future changes to grade standards appear to have been

resolved. * * * '' The August 13, 1997, interim final rule codified in

Part 36 of 7 CFR procedures that AMS will follow when developing,

revising, suspending, or terminating U.S. grade standards.

Further, during the period of time since the comment period ended,

AMS has had an opportunity to revise several grade standards using the

procedures that were established under Part 36. At this time AMS is

confident that the procedures effectively provide for public input.

This action will make final those regulations. As has been

longstanding practice, the standards for the various commodities will

be administered by the respective commodity programs within AMS. Also,

AMS has had time to evaluate the effectiveness of procedures that were

published in Part 36 and believes that they are serving their intended

purposes. Accordingly, it is appropriate that the provisions of the

December 4, 1995, interim final rule, and the August 13, 1997, interim

final rule be made final, without change.

List of Subjects

7 CFR Part 29

Administrative practice and procedure, Advisory committees,

Government publications, Imports, Pesticides and pests, Reporting and

recordkeeping requirements, Tobacco.

7 CFR Part 31

Wool.

[[Page 35502]]

7 CFR Part 32

Mohair.

7 CFR Part 36

Administrative practice and procedure, Agricultural commodities,

Food grades and standards, Reporting and recordkeeping requirements.

7 CFR Part 51

Agricultural commodities, Food grades and standards, Fruits, Nuts,

Reporting and recordkeeping requirements, Trees, Vegetables.

7 CFR Part 52

Food grades and standards, Food labeling, Frozen foods, Fruit

juices, Fruits, Reporting and recordkeeping requirements, Vegetables.

7 CFR Part 53

Cattle, Hogs, Livestock, Sheep.

7 CFR Part 54

Food grades and standards, Food labeling, Meat and meat products.

7 CFR Part 56

Eggs and egg products, Food grades and standards, Food labeling,

Reporting and recordkeeping requirements.

7 CFR Part 58

Dairy products, Food grades and standards, Food labeling, Reporting

and recordkeeping requirements.

7 CFR Part 70

Food grades and standards, Food labeling, Poultry and poultry

products, Rabbits and rabbit products, Reporting and recordkeeping

requirements.

7 CFR Part 160

Administrative practice and procedure, Advertising, Forests and

forest products, Labeling, Packaging and containers, Reporting and

recordkeeping requirements.

PART 29--TOBACCO INSPECTION

PART 31--WOOL STANDARDS

PART 32--MOHAIR STANDARDS

PART 36--PROCEDURES BY WHICH THE AGRICULTURAL MARKETING SERVICE

DEVELOPS, REVISES, SUSPENDS, OR TERMINATES VOLUNTARY OFFICIAL GRADE

STANDARDS

PART 51--FRESH FRUITS, VEGETABLES AND OTHER PRODUCTS 1

2 (INSPECTION, CERTIFICATION, AND STANDARDS)

PART 52--PROCESSED FRUITS AND VEGETABLES, PROCESSED PRODUCTS

THEREOF, AND CERTAIN OTHER PROCESSED FOOD PRODUCTS 3

PART 53--LIVESTOCK (GRADING, CERTIFICATION, AND STANDARDS)

PART 54--MEATS, PREPARED MEATS, AND MEAT PRODUCTS (GRADING,

CERTIFICATION, AND STANDARDS)

PART 56--GRADING OF SHELL EGGS AND U.S. STANDARDS, GRADES, AND

WEIGHT CLASSES FOR SHELL EGGS

PART 58--GRADING AND INSPECTION, GENERAL SPECIFICATIONS FOR

APPROVED PLANTS AND STANDARDS FOR GRADES OF DAIRY PRODUCTS

4

PART 70--VOLUNTARY GRADING OF POULTRY PRODUCTS AND RABBIT PRODUCTS

AND U.S. CLASSES, STANDARDS, AND GRADES

PART 160--REGULATIONS AND STANDARDS FOR NAVAL STORES

Accordingly the interim final rule amending 7 CFR Parts 29, 31, 32,

51, 52, 53, 54, 56, 58, 70, and 160, which was published at 60 FR 62172

on December 4, 1995, and the interim final rule amending 7 CFR Parts

29, 31, 32, 36, 52, 53, 54, and 58, which was published at 62 FR 43430

on August 13, 1997, are adopted as final rules, without change.

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\1\ Among such other products are the following: Raw nuts,

Christmas trees and evergreens; flowers and flower bulbs; and onion

sets.

\2\ None of the requirements in the regulations of this part

shall excuse failure to comply with any Federal, State, county, or

municipal laws applicable to products covered in the regulations in

this part.

\3\ Among such other processed food products are the following:

Honey; molasses, except for stockfeed; nuts and nut products, except

oil; sugar (cane, beet, and maple); sirups (blended), sirups, except

from grain; tea; cocoa; coffee; spices; condiments.

\4\ Compliance with these standards does not excuse failure to

comply with the provisions of the Federal Food, Drug and Cosmetic

Act.

Dated: June 24, 1998.

Enrique E. Figueroa,

Administrator, Agricultural Marketing Service.

[FR Doc. 98-17349 Filed 6-29-98; 8:45 am]

BILLING CODE 3410-02-P