Table Grapes (European or Vinifera Type); Grade Standards

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 51

[Docket Number FV-98-302]

Table Grapes (European or Vinifera Type); Grade Standards

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule revises the United States Standards for Grades

of Table Grapes (European or Vinifera Type). The Agricultural Marketing

Service (AMS), in cooperation with industry and other interested

parties develops and improves standards of quality, condition,

quantity, grade and packaging in order to facilitate commerce by

providing buyers, sellers, and quality assurance personnel uniform

language criteria for describing various levels of quality and

condition as valued in the marketplace. The revision will change the

specific varietal reference throughout the standard from the present

``Superior Seedless'' to ``Sugraone.'' This revision will result in a

benefit to the table grape industry by providing a uniform, up-to-date

reference ensuring proper application of the grade standards.

DATES: This rule is effective March 29, 1999. The incorporation by

reference of certain publications listed in the rule is approved by the

Director of the Federal Register as of March 29, 1999.

FOR FURTHER INFORMATION CONTACT: Frank O'Sullivan, Fresh Products

Branch, Fruit and Vegetable Programs, Agricultural Marketing Service,

U.S. Department of Agriculture, P.O. Box 96456, Washington D.C. 20090-

6456, (202) 720-2185; E-Mail Francis__J.__O[email protected].

SUPPLEMENTARY INFORMATION: 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 action 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 the rule.

AMS provides inspection and grading services and issues grade and

quality standards for commodities such as grapes. The agency does not

determine varietal names for such commodities. However, in February

1998, AMS received a request from Sun World International (Sun World)

to replace the varietal reference ``Superior Seedless'' with

``Sugraone'' in the table grape standards in 7 CFR Part 51.880-51.914.

Sun World, a grower/shipper with proprietary rights to the term

``Superior Seedless,'' advised AMS that ``Superior Seedless'' was a

registered trademark name and no longer the varietal name used for this

table grape variety.

Sun World petitioned AMS in February 1998 to revise the United

States Standards for Grades of Table Grapes (European or Vinifera

Type). Sun World requested that AMS revise the standards by replacing

the varietal reference of ``Superior Seedless'' with ``Sugraone.'' This

request appeared reasonable to AMS, because the U.S. Standards for

Grades of Table Grapes (European or Vinifera Type) lists specific

requirements for this variety. Although AMS is not responsible for

issuing varietal names, the Agency is responsible for facilitating

commerce by providing buyers, sellers, and quality assurance personnel

uniform language criteria for describing various levels of quality and

condition as valued in the marketplace. Accordingly, descriptions and

varietal names should be used that are current and applicable for its

users.

A proposed rule was issued to address this change. A proposed rule

was published in the Federal Register on October 21, 1998 [V. 63, FR

56096]. A comment period of sixty days was issued which closed on

December 21, 1998.

Only one comment was received during the comment period. This

comment was from the proponent, Sun World, which offered several

reasons for making the revision to the standard. These reasons include

the fostering of international trade, recognition of ``Sugraone'' as

the proper varietal name by appropriate international organizations and

consistency with applicable laws and international agreements. The

comments noted that on August 9, 1996, the State of California, where

100 percent of the U.S. production of Sugraone originates, revised its

regulations identifying Sugraone as a grape varietal name (California

Code of Regulations, Title 3, Subchapter 4, Fresh Fruits and

Vegetables, Article 25, Table Grapes and Raisins, November 16, 1996).

AMS has considered this comment and based upon available

information has determined that the varietal reference should be

revised from ``Superior Seedless'' to ``Sugraone.'' As previously

stated, AMS provides inspection and grading services and issues grade

and quality standards for commodities such as grapes. Even though U.S.

grade standards make reference to varieties for some requirements, the

agency does not determine varietal names for commodities.

However, according to the Agricultural Marketing Act of 1946 [7

U.S.C. 1621-1627, Sec. 203 (c)], the Secretary of Agriculture is

directed and authorized ``to develop and improve standards of quality,

condition, quantity, grade, and packaging, and recommend and

demonstrate such standards in order to encourage uniformity and

consistency in commercial practices.'' This change should encourage

uniformity and consistency in commercial practices with regard to

marketing this variety of table grape.

Further, users of the standard will be certain how to apply the

requirements of the standard, specifically to the Sugraone variety.

Ultimately, the changes are merely technical and the actual grade

requirements for this variety will remain unchanged. The references are

necessary to provide inspection personnel and other parties using the

grade standards with clear, concise, up-to-date information.

Accordingly, the revision will have no substantive effect in the

application of grade standards to regulated domestic and imported

grapes under the

[[Page 14576]]

Agricultural Marketing Agreement Act of 1937 [7 U.S.C. 601-674],

specifically those at 7 CFR part 925, and 7 CFR part 944, or grapes

regulated under the Export Grape and Plum Act [7 U.S.C. 591-599].

Accordingly, in Sec. 51.882 U.S. Fancy, paragraph (i)(1)(ii),

``Superior Seedless'' will be changed to ``Sugraone.'' In Sec. 51.884

U.S. No. 1 Table, paragraph (I)(1)(i), which specifies berry size for

the U.S. No. 1 Table grade, ``Superior Seedless'' will also be changed

to ``Sugraone.'' A similar change will be made to Sec. 51.885 U.S. No.

1 Institutional, paragraph (h)(1)(i), which also references berry size

for that particular grade.

In addition, as the maturity requirements specified in the

standards incorporate applicable portions of The California Code of

Regulations, and the State has revised these regulations by replacing

``Superior Seedless'' with ``Sugraone,'' Sec. 51.888 (a)(2) of the U.S.

grade standards will be revised to incorporate the new State

regulations by reference to The California Code of Regulations, Title

3, Subchapter 4, Fresh Fruits, Nuts, and Vegetables, Article 25 Table

Grapes and Raisins, November 16, 1996.

Pursuant to the requirements set forth in the Regulatory

Flexibility Act (RFA), the Agricultural Marketing Service 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

businesses subject to such actions in order that small businesses will

not be unduly or disproportionately burdened. The United States

standards issued pursuant to the Agricultural Marketing Act of 1946, 7

U.S.C. 1621-1627, and issued thereunder, are unique in that they are

brought about through group action of essentially small entities acting

on their own behalf. Thus, both statues have compatibility.

It is difficult to obtain an exact number of table grape handlers

and producers which grow or handle the Sugraone variety or Superior

Seedless brand, (primarily due to the fact that a table grape producer

or handler normally grows, or handles more than just one variety).

However, according to the 1997 USDA National Agricultural Statistics

Service reports, there are approximately 800 fresh market table grape

growers/shippers in the United States which produced 939,665 short tons

of table grapes (all varieties). Of these 800 growers/handlers,

approximately 650 are from California and produce approximately 80

percent (750,000 short tons) of the crop. Approximately 10 growers from

Arizona produced 2 percent (23,000 short tons) of the 1997 fresh market

table grape crop. The bulk of the remaining 18 percent of production

was produced by the remaining three of the top five States of table

grape production: Georgia, Arkansas, and New York. In 1997, California

produced approximately 26,572 short tons of the ``Sugraone'' variety,

representing approximately 3 percent of the total U.S. table grape

production and 100 percent of the U.S. production of this variety.

Small agricultural service firms, which includes handlers, have

been defined by the Small Business Administration (SBA) [13 CFR

121.601] as those having annual receipts of less than $5,000,000, and

small agricultural producers are defined as those having annual

receipts of less than $500,000. The table grape industry is

characterized by growers and handlers whose farming operations

generally involve more than one type (such as fresh market utilization

versus processed market utilization) and variety of table grape, and

whose income from farming operations in not exclusively dependent on

one table grape variety or even one commodity. Typical table grape

growers and shippers produce multiple varieties of fresh market table

grapes and juice grapes within a single year. Furthermore, table grape

handlers also handle not only multiple varieties of fresh market table

grapes and juice grapes within a single year, but multiple commodities.

Therefore, it is difficult to obtain an exact number of table grape

growers and handlers, and, more specifically, ``Sugraone'' table grape

growers, handlers and shippers, that can be classified as small

entities based on the SBA's definition. However, the majority of the

producers do have annual receipts greater than $500,000. Additionally,

there are approximately 127 importers that receive an average of $2.8

million in grape revenue. (Table grapes received by these importers are

subject to the requirements of Section 8e of the Agricultural Marketing

Agreement Act of 1937 referenced above.) Therefore, it is estimated

that the majority of table grape growers do not fit the SBA's

definition of a small entity while the majority of handlers/importers

are small entities.

The benefits of this rule are not expected to be disproportionately

greater or smaller for small handlers or producers than for larger

entities.

Alternatives were considered for this action. One alternative would

be to not issue a final rule. However, as the popularity of this

variety increases, and as imports of this variety also increase, the

exposure and frequency of this varietal designation will also increase.

Since the purpose of these standards is to expedite the marketing of

agricultural commodities, not changing this reference could result in

confusion in terms of the proper application for the U.S. grade

standards.

This action will make the standard more consistent and uniform with

marketing trends and commodity characteristics. It will not impose any

additional reporting or recordkeeping requirements on either small or

large grape producers, handlers, or importers. In addition, other than

discussed above, the Department has not identified any Federal rules

that duplicate, overlap, or conflict with this rule.

Pursuant to 5 U.S.C. 553, it is found and determined that good

cause exists for not postponing the effective date of this rule 30 days

after publication in the Federal Register because: (1) It would be

pertinent to have this change in effect by the beginning of the 1999

domestic table grape crop harvest (mid April to May); (2) the changes

being made in this final rule only affect growers/handlers of the

Sugraone variety of table grape; (3) the proposed rule provided a 60

day comment period during which no comments opposed to this rule were

received. Accordingly, AMS amends the United States Standards for

Grades of Table Grapes (European or Vinifera Type) as follows.

List of Subjects in 7 CFR Part 51

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

Reporting and recordkeeping requirements, Trees, Vegetables.

For reasons set forth in the preamble, 7 CFR part 51 is to be

amended as follows:

PART 51--[AMENDED]

1. The authority citation for Part 51 continues to read as follows:

Authority: 7 U.S.C. 1621-1627.

Sec. 51.882 [Amended]

2. In Sec. 51.882, paragraph (i)(1)(ii) is amended by removing the

words ``Superior Seedless'' and adding in their place the word

``Sugraone.''

Sec. 51.884 [Amended]

3. In Sec. 51.884, paragraph (i)(1)(i) is amended by removing the

words ``Superior Seedless'' and adding in their place the word

``Sugraone.''

Sec. 51.885 [Amended]

4. In Sec. 51.885, paragraph (h)(1)(i) is amended by removing the

words

[[Page 14577]]

``Superior Seedless'' and adding in their place the word ``Sugraone.''

Sec. 51.888 [Amended]

5. In Sec. 51.888, paragraph (a)(2) is amended by removing the date

``February 28, 1992'' and adding in its place the date ``November 16,

1996''.

Dated: March 22, 1999.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable Programs.

[FR Doc. 99-7473 Filed 3-25-99; 8:45 am]

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