Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 76381

obligation imposed on handlers. 

Assessments are applied uniformly on 

all handlers, and some of the costs may 

be passed on to producers. However, 

decreasing the assessment rate reduces 

the burden on handlers, and may reduce 

the burden on producers. In addition, 

the committee’s meeting was widely 

publicized throughout the California 

kiwifruit industry, and all interested 

persons were invited to attend the 

meeting and participate in committee 

deliberations on all issues. Like all 

committee meetings, the July 15, 2004, 

meeting was a public meeting and all 

entities, both large and small, were able 

to express views on this issue. 

This action imposes no additional 

reporting or recordkeeping requirements 

on either small or large California 

kiwifruit handlers. 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. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

An interim final rule concerning this 

action was published in the Federal 

Register on September 16, 2004 (69 FR 

55733). Copies of that rule were also 

mailed or sent via facsimile to all 

kiwifruit handlers. Finally, the interim 

final rule was made available through 

the Internet by USDA and the Office of 

the Federal Register. A 60-day comment 

period was provided for interested 

persons to respond to the interim final 

rule. The comment period ended on 

November 15, 2004, and no comments 

were received. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the committee and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act.

List of Subjects in 7 CFR Part 920

Kiwifruit, Marketing agreements, 

Reporting and recordkeeping 

requirements.

PART 920—KIWIFRUIT GROWN IN 

CALIFORNIA

■ Accordingly, the interim final rule 

amending 7 CFR part 920 which was 

published at 69 FR 55733 on September 

16, 2004, is adopted as a final rule 

without change.

Dated: December 15, 2004. 

A.J. Yates, 

Administrator, Agricultural Marketing 

Service.

[FR Doc. 04–27908 Filed 12–20–04; 8:45 am] 

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service 

7 CFR Parts 958 and 980

[Docket No. FV04–958–1 FIR] 

Onions Grown in Certain Designated 

Counties in Idaho and Malheur County, 

Oregon; Relaxation of Handling and 

Import Regulations

AGENCY: Agricultural Marketing Service, 

USDA.

ACTION: Final rule.

SUMMARY: The Department of 

Agriculture (USDA) is adopting, as a 

final rule, without change, an interim 

final rule which relaxes the size 

requirement for pearl onions, relaxes the 

minimum grade and size requirements 

for cipolline onion varieties, and 

updates the regulatory text concerning 

certain reporting requirements for 

onions handled under the Idaho-Eastern 

Oregon onion marketing order. The 

marketing order regulates the handling 

of onions grown in Idaho and Eastern 

Oregon and is administered locally by 

the Idaho-Eastern Oregon Onion 

Committee (Committee). This rule also 

continues in effect the action that 

relaxes the requirements for pearl and 

cipolline onions under the import 

regulations as required by section 8e of 

the Agricultural Marketing Agreement 

Act of 1937. Specifically, this rule 

continues in effect the action that 

changes the definition of pearl onions to 

mean onions 2 inches in diameter or 

less, establishes a relaxed minimum 

grade of U.S. No. 2 and relaxed 

minimum diameter of 1–1/2 inches for 

cipolline onions, and adds clarification 

and specificity to the reporting 

requirements for onions handled for 

peeling, chopping, or slicing. The 

changes will facilitate the marketing of 

onions handled under the marketing 

order, improve producer returns, and 

bring the section 8e import regulation 

into conformity with the marketing 

order.

DATES: Effective Date: January 20, 2005.

FOR FURTHER INFORMATION CONTACT:

Robert J. Curry, Northwest Marketing 

Field Office, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1220 

SW. Third Avenue, Suite 385, Portland, 

Oregon 97204; telephone: (503) 326–

2724, Fax: (503) 326–7440; or George 

Kelhart, Technical Advisor, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491, Fax: (202) 

720–8938. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720–

2491, Fax: (202) 720–8938, or E-mail: 

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

No. 130 and Marketing Order No. 958, 

both as amended (7 CFR part 958), 

regulating the handling of onions grown 

in certain designated counties in Idaho, 

and Malheur County, Oregon, 

hereinafter referred to as the ‘‘order.’’

The order is effective under the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

hereinafter referred to as the ‘‘Act.’’

This rule is also issued under section 

8e of the Act, which provides that 

whenever certain specified 

commodities, including onions, are 

regulated under a Federal marketing 

order, imports of these commodities 

into the United States are prohibited 

unless they meet the same or 

comparable grade, size, quality, or 

maturity requirements as those in effect 

for the domestically produced 

commodities. 

USDA 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.

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

76382 Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

There are no administrative 

procedures which must be exhausted 

prior to any judicial challenge to the 

provisions of import regulations issued 

under section 8e of the Act. 

This rule continues in effect the 

action that relaxes handling regulations 

for pearl and cipolline onions produced 

in certain designated counties in Idaho, 

and Malheur County Oregon, by 

redefining pearl onions to mean onions 

2 inches in diameter or less, and by 

establishing a relaxed minimum grade 

of U.S. No. 2 and a relaxed minimum 

diameter of 11⁄2 inches for cipolline 

onion varieties. As provided under 

section 8e of the Act, these changes 

continue in effect the actions that also 

apply to all imported pearl and 

cipolline onions. This rule also 

continues in effect the action that adds 

clarification and specificity to the 

reporting requirements by updating 

§ 958.328(d) for onions handled for 

peeling, chopping, or slicing to reflect 

current form provisions. These changes 

were unanimously recommended by the 

Committee on April 1, 2004, and are 

intended to facilitate the marketing of 

Idaho-Eastern Oregon onions and 

improve producer returns. 

Sections 958.51 and 958.52 of the 

order authorize the Committee to 

recommend, and the USDA to issue, 

grade, size, quality, pack, and container 

regulations for any variety or varieties of 

onions grown in the production area. 

Section 958.53 authorizes the issuance 

of special regulations to facilitate the 

handling of pearl onions as well as other 

special purpose shipments. Section 

958.65 authorizes the Committee to 

collect information from handlers. 

Regulations specific to the handling of 

onions produced in the regulated 

production area are contained in 

§ 958.328 of the order’s handling 

regulations, whereas relevant import 

regulations are contained in § 980.117 

and § 980.501 of the vegetable import 

regulations.

Pearl onions and cipolline onions are 

small, specialty onions with end uses in 

both the fresh market (raw and cooked) 

and processed market. Although there 

are relatively few pearl onions and 

cipolline onions produced in the 

Northwest, increased producer interest 

in both types of onions, as well as 

changes in customer preferences, 

encouraged this Committee 

recommendation. 

Pearl onions are defined, in part, in 

both the order and the import 

regulations as onions that are produced 

using specific cultural practices that 

limit growth and are inspected and 

certified as measuring no larger than the 

maximum designated size. Factors that 

can limit growth, and subsequently final 

bulb size, include the variety, plant 

density, depth planted, photoperiod, 

and temperature. Pearl onions are mild 

flavored white, red, or yellow skinned 

onions generally ranging in size from 

about 3⁄4 inch to less than 2 inches in 

diameter. 

Although pearl onions must be 

inspected and certified as measuring no 

larger than the maximum size 

designated under the order, they have 

been exempt from the minimum grade, 

size, and maturity requirements of the 

order since 1985. In order to be eligible 

for this exemption, the onions must be 

no greater than the stated maximum size 

limit. Although exempt from the grade, 

size, and maturity requirements, 

shipments of pearl onions are subject to 

administrative assessments. 

Due to previous changes in handling, 

marketing, and buyer preferences, the 

defined maximum diameter of pearl 

onions was changed from 11⁄2 inches to 

13⁄4 inches in 1990 (55 FR 27825). 

Similarly, due to ongoing changes in 

handling, marketing, and buyer 

preferences, this rule continues in effect 

the action that further relaxes the size 

requirements by increasing the defined 

maximum diameter of pearl onions to 2 

inches. 

The pearl onion market is a minor 

segment of the onion market served by 

the Idaho-Eastern Oregon production 

area. As such, the Committee continues 

to believe that pearl onions do not 

compete directly with most of the 

onions produced in this area and that 

the current exemption from size, grade, 

and maturity requirements should 

continue. 

Due to changing dynamics in the 

cultural and handling practices in this 

region, as well as buyer and consumer 

preferences, this relaxation in 

requirements will help facilitate the 

efficient movement of pearl onions into 

fresh market channels and may also 

enhance producer returns. 

Cipolline onions—also known as 

Borettana onions—are traditional Italian 

onions that are relatively small and 

button shaped, and include white, red, 

and yellow varieties. As noted earlier, 

cipolline (pronounced chip-ah-LEE-nee) 

onions have constituted a very small 

percentage of the onions produced and 

marketed in the order’s regulated 

production area in the past. However, 

due to an increase in cipolline onion 

production, and a growing consumer 

interest in this specialty onion, the 

order’s grade and size requirements 

were beginning to adversely affect the 

handling and marketing of cipolline 

onions. 

Under the order, white, red, and 

yellow onion varieties handled for the 

fresh market have varying minimum 

grade and size requirements. 

Specifically, white varieties must meet 

a minimum grade of U.S. No. 1, 1 inch 

minimum to 2 inches maximum or at 

least 11⁄2 inches minimum, whereas red 

varieties must meet a minimum grade of 

U.S. No. 2 and a minimum diameter of 

11⁄2 inches. The most prevalent onions 

packed in the Idaho-Eastern Oregon 

production area, yellow onion varieties, 

must meet a minimum grade of U.S. No. 

2 and measure 3 inches or larger in 

diameter, or, if packed to U.S. No. 1 

grade, they may have a minimum 

measurement of 13⁄4 inches in diameter. 

Prior to this change, cipolline onions 

were handled, graded, and inspected in 

accordance with the different order 

requirements for white, red, and yellow 

onion varieties.

Cipolline onions, however, range in 

size from about 1 inch in diameter to 

about 3 inches in diameter, with 

prevalence found in the 2-inch to 3-inch 

sizes. Since most of the cipolline onions 

produced in this area are yellow, U.S. 

No. 2 grade cipolline onions would have 

difficulty meeting the three-inch 

minimum size requirement. Following a 

review of the cultural practices, supply 

situation, and demand characteristics 

for cipolline onions, the Committee 

determined that the marketing of all 

cipolline onion varieties would be 

enhanced if handlers were held to a 

minimum grade of U.S. No. 2 and a 

minimum size of 11⁄2 inches in 

diameter—the same minimum 

requirements for all Idaho-Eastern 

Oregon red varieties. 

This rule, by establishing a minimum 

grade and size for all cipolline onion 

varieties distinct from the prevalent 

white, red, and yellow varieties, will 

help ensure that marketable cipolline 

onions meet the minimum requirements 

of the order. While the requirements in 

place prior to this action allowed for the 

shipment of white cipolline onions that

Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 76383

graded U.S. No. 1, 1-inch minimum to 

2-inches maximum, no such shipments 

were ever made from the production 

area. Therefore, this change in the 

minimum grade and size requirements 

is not expected to impact the shipment 

of white cipolline onions. 

As mentioned earlier, section 8e of 

the Act provides that when certain 

domestically produced commodities, 

including onions, are regulated under a 

Federal marketing order, imports of that 

commodity must meet the same or 

comparable grade, size, quality, and 

maturity requirements. Section 8e also 

provides that whenever two or more 

marketing orders regulating the same 

commodity produced in different areas 

of the United States are concurrently in 

effect, a determination must be made as 

to which of the areas produces the 

commodity in most direct competition 

with the imported commodity. Imports 

must meet the requirements established 

for that particular area. 

Grade, size, quality, and maturity 

regulations have been issued regularly 

under both Marketing Order No. 958 

and Marketing Order No. 959, which 

regulates the handling of onions 

produced in South Texas, since the 

marketing orders were established. The 

import regulations specify that import 

requirements for onions are to be based 

on the seasonal categories of onions 

produced in both marketing order areas. 

In that regard, imported onions must 

meet the requirements of the IdahoEastern Oregon onion marketing order 

during the period June 5 through March 

9 and the South Texas onion marketing 

order during the period March 10 

through June 4 of each season. Pearl and 

cipolline onions are not currently 

produced in South Texas. However, 

they are produced and marketed in 

limited quantities through out the year 

under the Idaho-Eastern Oregon onion 

marketing order. Therefore, the 

requirements for imported pearl and 

cipolline onions should be based upon 

the requirements established under 

Marketing Order No. 958 for the entire 

year. 

As a consequence, this action 

continues in effect changes to 

§ 980.117(a)(1) and (2) and (b)(1) of the 

onion import regulations by 

determining that imports of pearl and 

cipolline onions during the entire year 

are in most direct competition with the 

marketing of onions produced under 

Marketing Order No. 958 and changes to 

§ 980.117(h) and (i) by redefining pearl 

onions to mean onions produced using 

specific cultural practices that limit 

growth to 2 inches or less in diameter. 

Accordingly, all cipolline onions 

imported must be U.S. No. 2 grade or 

better and measure 11⁄2 inches or more 

in diameter, and pearl onions cannot be 

larger than 2 inches in diameter. 

This rule also continues in effect the 

action that clarifies certain handler 

reporting requirements. Under the 

handling regulations, onions that are 

inspected and certified as meeting the 

grade, size, maturity, and pack 

requirements of the order and are 

subsequently peeled, chopped, or sliced 

for fresh market within the production 

area may be handled without 

reinspection. Section 958.328(d) 

provides reporting procedures for the 

handling of such previously inspected 

onions for peeling, chopping, or slicing. 

The Committee uses Form FV–37, 

Rehandling of Onions Report, to collect 

information from handlers specific to 

onions handled under this section. 

These reporting requirements are in 

place primarily to ensure handler 

compliance with the order’s provisions. 

This rule continues in effect the action 

that adds clarification and specificity to 

the regulations by updating § 958.328(d) 

to reflect current Form FV–37 

provisions. The change is expected to 

minimize handler errors in completing 

the form and help ensure timely 

submission of the completed form to the 

Committee. 

This form has been approved 

previously by the Office of Management 

and Budget (OMB) under OMB Number 

0581–0178, Vegetable and Specialty 

Crops. This action will not impact the 

information collection burden hours 

currently approved by OMB for this 

form. 

Final Regulatory Flexibility Analysis

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA), the 

Agricultural Marketing Service (AMS) 

has considered the economic impact of 

this action on small entities. 

Accordingly, AMS has prepared this 

final 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 the 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 which 

regulate the handling of domestically 

produced products. 

There are approximately 42 handlers 

of Idaho-Eastern Oregon onions who are 

subject to regulation under the order 

and approximately 190 onion producers 

in the regulated area. In addition, based 

on the most recent information 

available, approximately 472 importers 

of onions are subject to import 

regulations and may be affected by this 

rule. Small agricultural service firms are 

defined by the Small Business 

Administration (13 CFR 121.201) 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 $750,000. 

Based on its assessment records, the 

Committee estimates that about 39 of 

the 42 handlers ship less than 

$5,000,000 worth of onions on an 

annual basis. In addition, based on the 

acreage (20,600), production (12,000,000 

cwt), and total producer revenue 

($130,768,000) reported by the National 

Agricultural Statistics Service for 2003, 

and the current number of onion 

producers (190), the average annual 

gross producer revenue is 

approximately $688,252. Thus, the 

majority of the onion handlers and the 

onion producers in this industry may be 

classified as small entities. Although it 

is not known how many importers of 

onions may be classified as small 

entities, we believe that many of the 472 

importers can be classified as such. 

There are two firms involved in altering 

onions under the order and both firms 

may be classified as small entities. 

This rule continues in effect the 

action that relaxes the size requirement 

for pearl onions, relaxes the minimum 

grade and size requirements for 

cipolline onions, and clarifies certain 

reporting requirements for onions 

handled under the Idaho-Eastern 

Oregon onion marketing order. 

Authority for this action is contained in 

§§ 958.51, 958.52, 958.53, and 958.65 of 

the order. This rule—unanimously 

recommended by the Committee at its 

April 1, 2004, meeting—continues in 

effect the action that changes 

§ 958.328(h) by redefining pearl onions 

to mean onions produced using specific 

cultural practices that limit growth to 

the same general size as boilers and 

picklers (as defined in the U.S. 

Standards for Grades of Onions), and 

that have been inspected and certified 

as measuring 2 inches in diameter or 

less. In addition, this rule continues in 

effect the action that changes 

§ 958.328(a)(2) by adding cipolline 

onions to the minimum grade and size 

requirements established for red onion 

varieties: U.S. No. 2 grade or better and 

11⁄2 inch diameter or larger. 

Under authority in section 8e of the 

Act, this rule also continues in effect the 

action that changes § 980.117(a)(1) and 

76384 Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 

(2), and (b)(1), of the onion import 

regulations by determining that imports 

of pearl and cipolline onions are in most 

direct competition during the entire 

year with the marketing of onions 

produced under Marketing Order No. 

958 and changes § 980.117(h) and (i) by 

redefining pearl onions to mean onions 

produced using specific cultural 

practices that limit growth to 2 inches 

in diameter or less. Although not 

specifically referenced in the text of 

§ 980.117, this rule also continues in 

effect the action that relaxes the 

minimum grade and size for imported 

cipolline onions to U.S. No. 2 grade and 

11⁄2 inches in diameter.

Finally, this rule continues in effect 

the action that updates § 958.328(d) to 

reflect the current form used for onions 

handled for peeling, chopping, or 

slicing. This action is intended to 

facilitate the handling and marketing of 

pearl and cipolline onions, increase 

producer returns, and help minimize 

errors in completing Form FV–37 

concerning the handling of onions for 

peeling, chopping, or slicing, and to 

help ensure timely submission of the 

form to the Committee. 

According to the Committee, there is 

currently one producer and one handler 

of pearl and cipolline onions in the 

regulated production area, and, as such, 

statistics relating to the production and 

marketing of pearl and cipolline onions 

in the Idaho-Eastern Oregon onion 

production area cannot be made 

available. The quantity of such specialty 

onions, however, would be minor in 

relation to the prevalent large, globular 

shaped Spanish-type onion produced in 

the production area. Regarding pearl 

and cipolline onions produced 

elsewhere in the United States or 

imported into the United States: 

statistical information is available 

grouped by dry bulb type onions, green 

onions, or onion sets and is generally 

unavailable by variety, size, or color. 

However, the U.S. Department of 

Commerce does track the quantity of 

pearl onions imported into the United 

States with a maximum diameter of .39 

inches. In 2003, for example, 

approximately 211 hundredweight of 

pearl onions (less than or equal to .39 

inches in diameter) were imported—in 

diminishing order—from Chile, Spain, 

China, Mexico, and India. In 

comparison, most onions imported into 

the U.S. are produced in Mexico, 

Canada, Peru, and Chile. Currently, 

there are no government statistics on the 

domestic production or importation of 

cipolline onions. 

Regarding the impact of this rule on 

affected entities, relaxing the size 

requirement for pearl onions and the 

grade and size requirement for cipolline 

onions is expected to benefit handlers, 

importers, and producers. With the 

change in the definition of pearl onions 

to include onions as large as 2 inches in 

diameter, a potentially greater quantity 

of onions will pass inspection and thus 

be certified under the order’s pearl 

onion exemption provisions. Similarly, 

by relaxing the minimum grade and size 

requirements for cipolline onions, a 

greater quantity of these onions should 

meet the order’s handling regulations. 

This could translate into an increased 

market for cipolline onions and greater 

returns for handlers, importers, and 

producers. While the requirements in 

place prior to this action allowed for the 

shipment of white cipolline onions that 

graded U.S. No. 1, 1-inch minimum to 

2 inches maximum, no such shipments 

were ever made. Therefore, this action 

is not expected to impact the shipment 

of white cipolline onions. 

The clarification of reporting 

requirements for peeled, chopped, and 

sliced onions will have the tangible 

effect of providing more clearly 

understood instructions to handlers 

who are required to complete Form FV–

37. 

The Committee considered several 

alternatives to the relaxation in 

handling regulations for pearl and 

cipolline onions. The Committee 

initiated this action due to a request 

from the Idaho-Eastern Oregon onion 

industry’s single pearl and cipolline 

onion producer and handler for an allinclusive exemption from the 

requirements of the order. A special 

subcommittee was formed to study the 

request. The initial request was an 

exemption for an entire specialty 

product line, which included onion 

sets, pearl onions, boiler onions, 

prepack onions, cipolline onions, and 

shallots. The requester’s main 

contention with the order is that none 

of his onions fit the profile of the IdahoEastern Oregon onion industry’s 

foremost product, the large, globular 

shaped and mild Spanish-type onion. In 

addition, the requester was of the view 

that the Committee’s promotion 

efforts—a major budgetary item for the 

Committee—does not benefit him as a 

producer and marketer of the small 

specialty onions. The requester also 

stated that the cost to him in complying 

with the order—in administrative 

assessments and inspection fees—is too 

high when considering his benefits from 

the order.

The subcommittee noted that onion 

sets and shallots do not need to be 

considered for further exemptions since 

neither is regulated under the marketing 

order. In addition, the subcommittee 

determined that boiler and prepacker 

size onions should not be exempt from 

the handling regulations since both are 

produced throughout the regulated 

production area. Various members of 

the subcommittee were of the view that 

the marketing of out-of-grade and offsize boiler and prepacker onions would 

have a negative impact on the marketing 

of all Idaho-Eastern Oregon onions. 

Further, as noted earlier in this 

document, pearl onions have been 

exempt from the minimum grade, size, 

and maturity requirements of § 958.328 

for several years. The subcommittee 

determined that an increase in the 

maximum size for pearl onions would 

facilitate the handling and marketing of 

these onions. The subcommittee 

considered increasing the maximum 

size under the pearl onion definition 

from 17⁄8 inches to as much as 23⁄4

inches in diameter. This was rejected, 

however, because this would permit 

handlers to ship these onions exempt 

from the quality requirements in 

competition with larger sized onions 

subject to such requirements. The 

subcommittee also rejected 

consideration of an exemption from the 

current assessment and inspection 

requirements for pearl onions as being 

detrimental to the program. Pearl onions 

are inspected under the order to assure 

that they do not exceed the maximum 

diameter permitted. 

Finally, the subcommittee considered 

various exemption and regulatory 

options in regard to cipolline onions. A 

complete exemption from the order was 

rejected since the subcommittee 

considered the cipolline onions as being 

a competitive product to the prevalent 

onion varieties produced and marketed 

under the order. Consideration was also 

given to establishing a different 

regulatory scheme for the county in 

which the cipolline onions are 

produced. This was not considered a 

viable option due to administrative 

concerns and the fact cipolline onions 

can be produced anywhere within the 

production area. 

The Committee, based on the 

subcommittee’s consideration of the 

issue, determined that pearl and 

cipolline onions are promoted through 

the order’s generic promotion efforts 

since a major component of these efforts 

are coupled to the Idaho-Eastern Oregon 

onion logo. In this regard, the 

Committee feels that all handlers within 

the regulated production area benefit 

from the order.

This rule will not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

onion handlers. As with all Federal 

marketing order programs, reports and 

Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 76385

forms are periodically reviewed to 

reduce information requirements and 

duplication by industry and public 

sector agencies. In addition, USDA has 

not identified any relevant Federal rules 

that duplicate, overlap, or conflict with 

this rule. 

The Committee’s meeting was widely 

publicized throughout the Idaho-Eastern 

Oregon onion industry and all 

interested persons were invited to 

attend the meeting and participate in 

Committee deliberations. Like all 

Committee meetings, the April 1, 2004, 

meeting was a public meeting and all 

entities, both large and small, were able 

to express their views on this issue. 

Also, as indicated earlier, the 

subcommittee appointed to consider 

this matter met on February 25, 2004, 

and discussed this issue in detail. That 

meeting was also a public meeting and 

both large and small entities were able 

to participate and express their views. 

An interim final rule concerning this 

action was published in the Federal 

Register on September 22, 2004. Copies 

of the rule were made available by the 

Committee’s staff to all producers, 

handlers, and interested persons. In 

addition, the rule was made available 

though the Internet by USDA and the 

Office of the Federal Register. That rule 

provided for a 60-day comment period 

which ended November 22, 2004. Two 

comments were received during that 

period. Neither comment addressed the 

substance of the interim final rule; 

therefore, no changes are made as a 

result of these comments. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material presented, including the 

Committee’s recommendation, and 

other information, it is found that 

finalizing the interim final rule, without 

change, as published in the Federal 

Register (69 FR 56667) will tend to 

effectuate the declared policy of the Act. 

In accordance with section 8e of the 

Act, the United States Trade 

Representative has concurred with the 

finalization of this rule.

List of Subjects 

7 CFR Part 958

Marketing agreements, Onions, 

Reporting and recordkeeping 

requirements. 

7 CFR Part 980

Food grades and standards, Imports, 

Marketing agreements, Onions, Potatoes, 

Tomatoes.

PART 958—ONIONS GROWN IN 

CERTAIN DESIGNATED COUNTIES IN 

IDAHO, AND MALHEUR COUNTY, 

OREGON

PART 980—VEGETABLES; IMPORT 

REGULATIONS

■ Accordingly, the interim final rule 

amending 7 CFR parts 958 and 980 

which was published at 69 FR 56667 on 

September 22, 2004, is adopted as a final 

rule without change.

Dated: December 15, 2004. 

A.J. Yates, 

Administrator, Agricultural Marketing 

Service.

[FR Doc. 04–27909 Filed 12–20–04; 8:45 am] 

BILLING CODE 3410–02–U

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service 

7 CFR Part 982

[Docket No. FV05–982–1 IFR] 

Hazelnuts Grown in Oregon and 

Washington; Establishment of Final 

Free and Restricted Percentages for 

the 2004–2005 Marketing Year

AGENCY: Agricultural Marketing Service, 

USDA.

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule establishes final free 

and restricted percentages for domestic 

inshell hazelnuts for the 2004–2005 

marketing year under the Federal 

marketing order for hazelnuts grown in 

Oregon and Washington. The final free 

and restricted percentages are 6.4921 

and 93.5079 percent, respectively. The 

percentages allocate the quantity of 

domestically produced hazelnuts which 

may be marketed in the domestic inshell 

market (free) and the quantity of 

domestically produced hazelnuts that 

must be disposed of in outlets approved 

by the Board (restricted). Volume 

regulation is intended to stabilize the 

supply of domestic inshell hazelnuts to 

meet the limited domestic demand for 

such hazelnuts with the goal of 

providing producers with reasonable 

returns. This rule was recommended 

unanimously by the Hazelnut Marketing 

Board (Board), which is the agency 

responsible for local administration of 

the marketing order.

DATES: Effective Date: December 22, 

2004. This interim final rule applies to 

all 2004–2005 marketing year restricted 

hazelnuts until they are properly 

disposed of in accordance with 

marketing order requirements. 

Comments received by February 22, 

2005 will be considered prior to 

issuance of a final rule.

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; Fax: (202) 

720–8938; E-mail: 

moab.docketclerk@usda.gov; or Internet: 

http://www.regulations.gov. All 

comments should reference the docket 

number and the date and page number 

of this issue of the Federal Register and 

will be available for public inspection in 

the Office of the Docket Clerk during 

regular business hours, or can viewed 

at: http://www.ams.usda.gov/fv/

moab.html.

FOR FURTHER INFORMATION CONTACT:

Barry Broadbent, Northwest Marketing 

Field Office, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1220 

SW., Third Avenue, Suite 385, Portland, 

OR 97204; Telephone: (503) 326–2724, 

Fax: (503) 326–7440; or George J. 

Kelhart, Technical Advisor, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491, Fax: (202) 

720–8938. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence SW., 

STOP 0237, Washington, DC 20250–

0237; Telephone: (202)720–2491, Fax: 

(202) 720–8938, or E-mail: 

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

No. 115 and Marketing Order No. 982, 

both as amended (7 CFR Part 982), 

regulating the handling of hazelnuts 

grown in Oregon and Washington, 

hereinafter referred to as the ‘‘order.’’

The order is effective under 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 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866.