Fruits; Import Regulations; Exemption of Grape Varieties From the Table Grape Import Regulation

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 944

[Docket No. FV98-944-1 PR]

Fruits; Import Regulations; Exemption of Grape Varieties From the

Table Grape Import Regulation

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule with request for comments.

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

SUMMARY: This proposed rule would change the table grape import

regulation by adding several grape varieties to the list of varieties

specifically exempted from the grade, size, quality, and maturity

requirements of the grape import regulation. The grape import

regulation is based on the requirements implemented under a Federal

marketing order for grapes grown in southeastern California. Currently,

any variety of vinifera species table grapes, except Emperor, Calmeria,

Almeria, and Ribier varieties, are subject to the requirements of the

marketing order and the import regulation. The Emperor, Calmeria,

Almeria, and Ribier varieties of grapes are exempted from regulations

established under the marketing order and therefore the import

regulation because they are not produced in the California production

area. The grape varieties proposed to be added to the list of exempted

varieties are genetically related to and/or possess characteristics

similar to the four named varieties, and are not produced in the

production area covered under the Federal marketing order. Also, one

variety previously not produced in the production area would no longer

be exempt because it is currently produced in the area covered by the

marketing order. A complete list of exempted varieties would clarify

the grape import regulation and make it easier for exporters and

importers to make marketing decisions.

DATES: Comments must be received by February 26, 1999.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposed rule. Comments must be sent to the Docket

Clerk, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, PO. Box

96456, Washington, DC 20090-6456; Fax: (202) 205-6632; or E-mail:

[email protected]. 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: George J. Kelhart, Marketing Order

Administration Branch, F&V, AMS, USDA, room 2525-S, PO. Box 96456,

Washington, DC 20090-6456; Telephone: (202) 720-2491; Fax: (202) 205-

6632. Small businesses may request information on compliance with this

proposed regulation by contacting: Jay Guerber, Marketing Order

Administration Branch, Fruit and Vegetable Programs, AMS, USDA, P.O.

Box 96456, room 2525-S, Washington, DC 20090-6456; Telephone: (202)

720-2491; Fax: (202) 205-6632.

SUPPLEMENTARY INFORMATION: This proposal to change the table grape

import regulation (7 CFR 944.503; 63 FR 28475, May 26, 1998) 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.''

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

conformance with Executive Order 12866.

This proposed rule has been reviewed under Executive Order 12988,

Civil Justice Reform. This proposal is not intended to have retroactive

effect. This proposed rule would 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 proposed rule.

Section 8e of the Act specifies that whenever certain specified

commodities, including table grapes, are regulated under a Federal

marketing order, imports of that commodity into the United States are

prohibited unless they meet the same or comparable grade, size,

quality, and maturity requirements as those in effect for the

domestically produced commodity. Marketing Order No. 925 (7 CFR part

925) regulates the handling of grapes grown in a designated area of

southeastern California. Grade, size, quality, and maturity

requirements are implemented under that order for all varieties of

vinifera species table grapes, except Emperor, Calmeria, Almeria, and

Ribier, during the period April 20 through August 15 each year. Thus,

the requirements applied to the regulated, nonexempt varieties of

vinifera species grapes under the marketing order also must apply to

these varieties when they are offered for importation during that time

period. The four named varieties are exempt from marketing order

requirements because they are not grown in the production area covered

by the marketing order.

This proposed rule would clarify the grape import regulation by

adding eleven grape varieties to the list of varieties of vinifera

species table grapes specifically exempted in the import regulation.

The eleven additional grape varieties are genetically related to and/or

possess characteristics similar to Emperor, Calmeria, Almeria, or

Ribier variety grapes, and are not produced in the production area

covered under Marketing Order No. 925. Providing a complete list of

exempted varieties would clarify the import regulation and would make

it easier for exporters and importers to make marketing decisions.

The four named varieties were specifically exempted from the grape

import regulation on a continuing basis in 1985 (86 FR 18849; May 3,

1985). This was necessary to keep the import regulation in conformity

with the requirements implemented under Marketing Order No. 925.

Since that time, eleven varieties have been evaluated by the

Department and determined to be exempt from import requirements because

they are genetically related to and/or have similar characteristics to

Emperors, Calmerias, Almerias, and Ribiers. In addition, these

varieties were not and are not currently produced in the production

area covered under Marketing Order No. 925.

Initially, the number of varieties was small. Over time, the number

of exempt varieties has grown and a complete list of exempt varieties

should be added to the import regulation to facilitate

[[Page 71404]]

reference. The varieties to be included with Emperors, Calmerias,

Almerias, and Ribiers are: Italia Pirovano (a.k.a. Blanca Italia),

Christmas Rose, Muscatel, Barlinka, Dauphine, Kyojo, Waltham Cross,

Alphonse Lavallee, Bien Donne, Bonnoir (a.k.a. Bonheur), and Sonita.

Another variety, Red Globe, previously exempted, is not included in

this list because Red Globes are now produced and regulated under

Marketing Order No. 925, and therefore must be regulated under the

table grape import regulation.

These varieties of table grapes would be listed as exempt varieties

together with the Emperors, Calmerias, Almerias and Ribiers in

paragraph (a)(1) of Sec. 944.503 of the table grape import regulation,

thereby, facilitating reference to the eleven additional varieties.

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. Accordingly, AMS has prepared this initial regulatory

flexibility analysis.

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

for the domestically produced commodity. Consequently, this proposed

rule should impact both small and large business entities involved in

the export and importation of table grapes in a manner comparable to

regulations issued and applied under the California table grape

marketing order (7 CFR part 925).

There are approximately 127 importers of grapes. Small agricultural

service firms have been defined by the Small Business Administration

(13 CFR 121.601) as those having annual receipts of less than

$5,000,000. The average importer receives $2.8 million in grape

revenue, excluding receipts from other sources. Therefore, we believe

that the majority of these importers are small entities.

Section 8e of the Act specifies that whenever certain specified

commodities, including table grapes, are regulated under a Federal

marketing order, imports of that commodity into the United States are

prohibited unless they meet the same or comparable grade, size,

quality, and maturity requirements as those in effect for the

domestically produced commodity. Marketing Order No. 925 (7 CFR part

925) regulates the handling of grapes grown in a designated area of

southeastern California. Grade, size, quality, and maturity

requirements are implemented under that order for all varieties of

vinifera species table grapes, except Emperor, Calmeria, Almeria, and

Ribier, during the period April 20 through August 15 each year. Thus,

the requirements applied to the regulated, nonexempt varieties of

vinifera species grapes under the marketing order also must apply to

these varieties when they are offered for importation during that time

period. The four named grape varieties are exempted from requirements

established under the marketing order and the import regulation because

they are not produced in the California production area.

The four named varieties were specifically exempted from the grape

import regulation on a continuing basis in 1985 (86 FR 18849; May 3,

1985). This was necessary to keep the import regulation in conformity

with the requirements implemented under Marketing Order No. 925.

Since that time, eleven varieties have been evaluated and were

determined by the Department to be exempt from the minimum grade, size,

quality, and maturity requirements of the grape import regulation,

because they are genetically related to and/or possess characteristics

similar to Emperor, Calmeria, Almeria, or Ribier variety grapes, and

are not produced in the production area covered by Marketing Order No.

925.

Initially, the number of such exempt varieties was small. However,

over the years, the number has grown and a complete list of exempt

varieties should be added to the import regulation to facilitate

reference. The varieties to be included with Emperors, Calmerias,

Almerias, and Ribiers are: Italia Pirovano (a.k.a. Blanca Italia),

Christmas Rose, Muscatel, Barlinka, Dauphine, Kyojo, Waltham Cross,

Alphonse Lavallee, Bien Donne, Bonnoir (a.k.a. Bonheur), and Sonita.

Another variety, Red Globe, previously exempted, now is produced in the

production area covered under the marketing order and would not be

exempted. The additional varieties of table grapes would be listed as

exempt varieties together with Emperors, Calmerias, Almerias and

Ribiers in paragraph (a)(1) of Sec. 944.503 of the table grape import

regulation. A complete list of exempt varieties would help exporters

and importers operate more effectively under the requirements, and help

them make marketing decisions.

Chile is the dominant grape exporting country from December through

May each year. The Republic of South Africa also exports some grapes to

the United States during this time period. Mexico has been the largest

exporter of grapes to the United States during the May through August

period each year. Chile and Italy export small quantities of grapes to

the United States during this period. During the September through

November period exports arrive from Canada and Italy.

In 1997, imports of table grapes totaled 359,928 metric tons. Chile

was the principal source, accounting for 76 percent of the total.

Mexico exported 75,713 metric tons and The Republic of South Africa

exported 7,450 metric tons to the United States during that year. Italy

exported 1,142 metric tons and Canada exported 3,202 metric tons.

This clarification would not require any changes in the grape

handling practices of exporters and importers because the varieties to

be added as exempt varieties are already being treated as exempt

varieties.

The benefit of facilitating reference to all of the exempted

varieties is not expected to be disproportionately greater or smaller

for small importers than for larger importers.

Because regulated entities would benefit from this proposed

clarification by helping them make table grape export, import, and

marketing plans, no other alternative to this action would be

considered viable.

This action would not impose any additional reporting or

recordkeeping requirements on either small or large grape importers. As

with all Federal marketing order programs, reports and forms are

periodically reviewed to reduce information requirements and

duplication by industry and public sector agencies. In addition, the

Department has not identified any relevant Federal rules that

duplicate, overlap or conflict with this rule.

Interested persons are invited to submit information on the

regulatory and informational impacts of this action on small

businesses.

In accordance with section 8e of the Act, the U.S. Trade

Representative has concurred with the issuance of this proposed rule.

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.

[[Page 71405]]

List of Subjects in 7 CFR Part 944

Avocados, Food grades and standards, Grapefruit, Grapes, Imports,

Kiwifruit, Limes, Olives, Oranges.

For the reasons set forth in the preamble, 7 CFR part 944 is

proposed to be amended as follows:

PART 944--FRUITS; IMPORT REGULATIONS

1. The authority citation for 7 CFR part 944 continues to read as

follows:

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

Sec. 944.503 [Amended]

2. In Sec. 944.503, paragraph (a)(1) introductory text, the words

``, except Emperor, Calmeria, Almeria, and Ribier,'' are replaced with

the words ``except Emperor, Calmeria, Almeria, Ribier, Italia Pirovano

(a.k.a. Blanca Italia), Christmas Rose, Muscatel, Barlinka, Dauphine,

Kyojo, Waltham Cross, Alphonse Lavallee, Bien Donne, Bonnoir, (a.k.a.

Bonheur), and Sonita,''.

Dated: December 21, 1998.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable Programs.

[FR Doc. 98-34208 Filed 12-24-98; 8:45 am]

BILLING CODE 3410-02-P