This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

77561 

Vol. 75, No. 238 

Monday, December 13, 2010 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 35 

[Doc. No. AMS–FV–10–0091; FV11–35–1 PR] 

Regulations Issued Under the Export 

Grape and Plum Act; Revision to the 

Minimum Requirements 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule invites comments 

on proposed revisions to the 

requirements under the Export Grape 

and Plum Act. The proposed action 

would change the minimum bunch 

weight requirement for grapes exported 

to Japan, Europe, and Greenland from 

one-half pound to one-quarter pound. 

This rule would also update the list of 

European countries defined in the 

regulation and remove the additional 2 

percent tolerance for sealed berry cracks 

on the Exotic grape variety. This action 

was recommended by the California 

Grape and Tree Fruit League (League). 

DATES: Comments must be received by 

January 12, 2011. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposal. 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; or 

Internet: http://www.regulations.gov. All 

comments should reference the 

document 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, or can be viewed at: http:// 

www.regulations.gov. All comments 

submitted in response to this rule will 

be included in the record and will be 

made available to the public. Please be 

advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Dawana J. Clark, Marketing Specialist, 

or Kenneth G. Johnson, Regional 

Manager, DC Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (301) 734– 

5243, Fax: (301) 734–5275, or E-mail: 

Dawana.Clark@ams.usda.gov or 

Kenneth.Johnson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Antoinette 

Carter, 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: 

Antoinette.Carter@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposed 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.’’ The Act 

promotes the foreign trade of U.S. grown 

grapes and plums by authorizing the 

implementation of regulations with 

minimum grade, quality, container, 

container marking, and inspection 

requirements. 

This proposed rule would amend 

‘‘Regulations Issued Under Authority of 

the Export Grape and Plum Act’’ 

(regulations) (7 CFR part 35). The 

regulated entities are shippers, 

exporters, and carriers of table grapes 

for export. 

This rule has been determined not 

significant for purposes of Executive 

Order 12866 and, therefore, has not 

been reviewed by the Office of 

Management and Budget. 

This proposal has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is not intended 

to have retroactive effect. 

Section 35.11 of the regulations 

establishes minimum size and quality 

requirements for export shipments of 

any variety of vinifera species table 

grapes. Currently, such grapes shipped 

to Japan, Europe, or Greenland must 

meet a minimum grade of U.S. Fancy 

Table as specified in the U.S. Standards 

for Grades of Table Grapes (standards) 

(7 CFR part 51, sections 51.880–51.992), 

with the additional requirement that 

bunches must each weigh at least onehalf pound. Section 35.11 also defines 

the countries in Europe for which the 

export regulation applies. Finally, 

§ 35.11 provides an additional 2 percent 

tolerance for sealed berry cracks on both 

the Ribier and Exotic varieties, which 

must otherwise meet the minimum 

requirements for the U.S. No. 1 Table 

grade as contained in the standards. 

This proposed rule would revise 

§ 35.11(a) of the order’s administrative 

rules and regulations by changing the 

minimum bunch weight requirement for 

grapes exported to Japan, Europe, and 

Greenland from one-half pound to onequarter pound. This rule would further 

revise § 35.11(a) by updating the list of 

European countries defined in the 

regulation. Finally, this rule would 

revise § 35.11(b) by removing the 

additional 2 percent tolerance for sealed 

berry cracks on the Exotic grape variety. 

The Board of Directors of the 

California Grape and Tree Fruit League 

(League), which represents a substantial 

portion of the fresh table grape industry, 

unanimously recommended that the 

one-half pound bunch size minimum 

requirement be removed from § 35.11(a) 

of the regulations. This would make the 

minimum bunch size requirement onequarter pound as defined in the 

standards for U.S. Fancy Table grade. 

There has been an increasing retail 

demand for table grapes packaged in 

plastic clamshells, particularly for 

export markets. One of the most popular 

package sizes is the 500 gram 

(approximately 1.1 pounds) clamshell. 

However, handlers find it difficult to fit 

two larger (minimum one-half pound) 

grape bunches into the 500 gram 

clamshell. The recommended change 

would allow handlers to use smaller 

(minimum one-quarter pound) bunches 

to fill the smaller clamshell packages. 

This change would offer handlers 

greater flexibility in packaging and 

would allow them to pack a greater 

portion of the crop into the clamshell 

packages that are popular in the 

marketplace. The League believes this 

change would position shippers and 

exporters to better meet market demand 

while maintaining pack quality. 

The League further recommended that 

the list of countries used to define the 

term Europe in § 35.11(a) of the 

regulations be updated to include the 

current names of European countries for 

which the export regulations apply. 

Specifically, the names 


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77562 Federal Register / Vol. 75, No. 238 / Monday, December 13, 2010 / Proposed Rules 

‘‘Czechoslovakia,’’ ‘‘East Germany,’’ 

‘‘West Germany,’’ and ‘‘Yugoslavia’’ 

would be deleted, and the following 

countries would be added to the 

remaining list: Bosnia, Croatia, Czech 

Republic, Germany, Herzegovina, 

Macedonia, Montenegro, Serbia, and 

Slovenia. Such action would clarify the 

European destinations for which the 

export regulations are applicable. 

Finally, the League recommended that 

§ 35.11(b) be revised by removing the 

additional 2 percent tolerance for sealed 

berry cracks on Exotic variety grapes. 

This variety is no longer produced on a 

commercial basis and the additional 

tolerance is no longer warranted. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

action 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. 

Because California table grapes 

represent the bulk of U.S. production, it 

can be assumed that an analysis of the 

effects of the proposed rule upon 

members of the California table grape 

industry would be representative of the 

entire U.S. industry. According to 

industry statistics, at least 98 percent of 

U.S. table grapes are produced in 

California. Approximately 35 percent of 

the U.S. table grape crop is exported. 

There are approximately 550 table grape 

producers in California, and 

approximately 75 table grape shippers. 

The number of table grape exporters and 

carriers is unknown. 

Small agricultural producers are 

defined as those having annual receipts 

of less than $750,000; and small 

agricultural service firms, including 

shippers, exporters, and carriers, are 

defined by the Small Business 

Administration (SBA) (13 CFR 121.201) 

as those having annual receipts of less 

than $7,000,000. USDA’s National 

Agricultural Statistics Service reports 

that California table grape production 

for 2008 was 724,000 tons, valued at 

$461 per ton or $333,764,000. Average 

receipts for California’s 550 producers 

would thus be approximately $606,844, 

which is lower than the SBA threshold 

of $750,000 for small producers. 

According to USDA’s Foreign 

Agricultural Service, 367,643 tons of 

fresh grapes, valued at $608,757,000, 

were exported from the U.S. in 2008. 

Assuming that 98 percent of exported 

grapes were produced in California, 

average 2008 receipts for California’s 75 

shippers would have been $7,954,425, 

which is higher than the SBA threshold 

of $7,000,000 for small agricultural 

firms. 

Based upon the preceding 

calculations, it could be concluded that 

the majority of California (and therefore, 

U.S.) table grape producers would be 

classified as small entities, and that the 

majority of shippers would be classified 

as large entities, according to SBA 

definitions. However, the League 

believes that a small number of shippers 

ship a majority of the volume, and that 

the majority of California table grape 

shippers should be classified as small 

entities under SBA’s standards. No 

information regarding the receipts or 

size of U.S. table grape exporters and 

carriers is available. 

This proposed rule is issued under 

authority of the Export Grape and Plum 

Act, as amended (7 U.S.C. 591–599). 

This rule would amend the ‘‘Regulations 

Issued Under Authority of the Export 

Grape and Plum Act’’(7 CFR part 35) by 

changing the minimum bunch weight 

requirement specified in § 35.11(a) for 

grapes exported to Japan, Europe, and 

Greenland from one-half pound to onequarter pound. This rule would further 

revise § 35.11(a) by updating the list of 

European countries defined in the 

regulation. Finally, this rule would 

revise § 35.11(b) by removing the 

additional 2 percent tolerance for sealed 

berry cracks on the Exotic grape variety. 

The League met on June 24, 2010, and 

unanimously recommended revising the 

minimum size requirements to allow a 

one-quarter pound minimum bunch 

size, instead of the one-half pound 

minimum bunch size currently 

specified in the regulations. The onequarter pound minimum bunch size is 

specified in the standards for U.S. Fancy 

Table grade grapes, which are 

incorporated by reference in the 

regulations. The League also 

recommended updating the list of 

European countries defined in the 

regulation to reflect the currently 

recognized names of those countries. 

Finally, the League recommended 

removing the additional 2 percent 

tolerance for sealed berry cracks in the 

Exotic grape variety. This variety is no 

longer in commercial production, and 

an additional tolerance for defects in 

that variety is no longer warranted. 

The League believes that adhering to 

the smaller bunch size requirement 

currently specified in the standards for 

U.S. Fancy Table grade would have a 

beneficial impact on the entire industry. 

It is difficult to fill the smaller 

clamshells with the larger bunches of 

grapes, thus limiting the number of 

clamshells that can be shipped. It is 

easier to fill the clamshells with smaller 

bunches, which fit into the packages 

better. Therefore, the League believes 

that the industry will be able to ship a 

greater number of 500 gram clamshells 

to meet market demand. Although they 

did not identify any potential additional 

costs to making this change, the League 

believes that the impact of any 

additional costs would be outweighed 

by the advantage of presenting U.S. 

table grapes in packages most desirable 

in the retail market. The benefits of this 

action would be a gain in the overall 

amount of product sold and an increase 

in returns to producers, shippers, 

exporters, and carriers, regardless of 

size. 

Updating the list of European 

countries for which the export 

regulations apply and removing the 

additional 2 percent tolerance for sealed 

berry cracks on the obsolete Exotic 

variety merely update the regulations to 

reflect current terminology and industry 

trends. These changes are not expected 

to have any economic impact on large 

or small entities. 

The League recommended that these 

changes be effective for the 2011 

harvesting season, which begins 

approximately May 1, 2011. These 

changes would remain in effect on a 

continuing basis, beginning with the 

2011 season. These actions would allow 

for more practical and efficient 

packaging while maintaining the overall 

quality of exported table grapes. These 

recommended actions are intended to 

allow shippers and exporters to be more 

competitive in the marketplace, thereby 

selling more product. 

This proposed rule would not impose 

any additional reporting or 

recordkeeping requirements on either 

small or large table grape shippers, 

exporters, or carriers. As with all 

Federal regulatory marketing programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

AMS is committed to complying with 

the E–Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap or 

conflict with this proposed rule. 

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. 


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Federal Register / Vol. 75, No. 238 / Monday, December 13, 2010 / Proposed Rules 77563 

Any questions about the compliance 

guide should be sent to Antoinette 

Carter at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

A 30-day comment period is provided 

to allow interested persons to respond 

to this proposal. Thirty days is deemed 

appropriate because this rule should be 

in place prior to the 2011 harvesting 

season, which begins approximately 

May 1, 2011. All written comments 

timely received will be considered 

before a final determination is made on 

this matter. 

List of Subjects in 7 CFR Part 35 

Administrative practice and 

procedures, Exports, Grapes, Plums, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 35 is proposed to 

be amended as follows: 

PART 35—EXPORT GRAPES AND 

PLUMS 

1. The authority citation for 7 CFR 

part 35 continues to read as follows: 

Authority: 48 Stat. 734; 7 U.S.C. 591–599. 

2. In § 35.11, paragraphs (a) and (b) 

are revised to read as follows: 

§ 35.11 Minimum requirements. 

* * * * * 

(a) Any such variety for export to 

destinations in Japan, Europe (defined 

to mean the following countries: 

Albania, Austria, Belgium, Bosnia, 

Bulgaria, Croatia, Czech Republic, 

Denmark, England, Finland, France, 

Germany, Greece, Herzegovina, 

Hungary, Iceland, Ireland, Italy, 

Liechtenstein, Luxembourg, Macedonia, 

Montenegro, Netherlands, Northern 

Ireland, Norway, Poland, Portugal, 

Romania, Scotland, Serbia, Slovenia, 

Spain, Sweden, Switzerland, Wales), or 

Greenland shall meet each applicable 

minimum requirement of the U.S. Fancy 

Table grape grade as specified in the 

U.S. Standards for Grades of Table 

Grapes (European or Vinifera Type) 

(§§ 51.880–51.912 of this title). The 

Black Corinth variety shall be exempt 

from bunch and berry size requirements. 

(b) Any such variety for export to any 

foreign destination, other than 

destinations in Japan, Europe, 

Greenland, Canada, or Mexico, shall 

meet each applicable minimum 

requirement of the U.S. No. 1 Table 

grape grade as specified in the U.S. 

Standards for Grades of Table Grapes 

(European or Vinifera Type) (§§ 51.880– 

51.912 of this title), except that an 

additional 2 percent tolerance for sealed 

berry cracks on the Ribier variety is 

allowed. The Black Corinth variety shall 

be exempt from bunch and berry size 

requirements. 

* * * * * 

Dated: December 7, 2010. 

Craig Morris, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–31197 Filed 12–10–10; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 916 and 917 

[Doc. No. AMS–FV–10–0084; FV10–916/917– 

3 CR] 

Nectarines, Pears, and Peaches Grown 

in California; Continuance Referenda 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Referenda order. 

SUMMARY: This document directs that 

referenda be conducted among eligible 

California nectarine, pear, and peach 

growers to determine whether they favor 

continuance of the marketing orders 

regulating the handling of nectarines, 

pears, and peaches grown in California. 

DATES: The referenda will be conducted 

from January 12 through February 2, 

2011. To vote in these referenda, 

growers must have produced nectarines, 

pears, or peaches in California during 

the period April 1, 2010, through 

November 30, 2010. 

ADDRESSES: Copies of the marketing 

orders may be obtained from the 

California Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, United States Department of 

Agriculture, 2202 Monterey Street, Suite 

102B, Fresno, California 93721–3129, or 

the Office of the Docket Clerk, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237. 

FOR FURTHER INFORMATION CONTACT: Jerry 

L. Simmons, Marketing Specialist, or 

Kurt J. Kimmel, Regional Manager, 

California Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (559) 487– 

5901, Fax: (559) 487–5906; or e-mail: 

Jerry.Simmons@ams.usda.gov or 

Kurt.Kimmel@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: Pursuant 

to Marketing Order Nos. 916 and 917 (7 

CFR parts 916 and 917), hereinafter 

referred to as the ‘‘orders,’’ and the 

applicable provisions of the Agricultural 

Marketing Agreement Act of 1937, as 

amended (7 U.S.C. 601–674), hereinafter 

referred to as the ‘‘Act,’’ it is hereby 

directed that referenda be conducted to 

ascertain whether continuance of the 

orders is favored by growers. The 

referenda shall be conducted from 

January 12 through February 2, 2011, 

among eligible California nectarine, 

pear, and peach growers. Only growers 

that were engaged in the production of 

nectarines, pears, or peaches in 

California during the period of April 1, 

2010, through November 30, 2010, may 

participate in the continuance 

referenda. 

Although pears are included under 

the provisions of M.O. 917, those 

provisions have been suspended since 

April 1994. Since that time, the pear 

industry has been regulated by a State 

marketing order. If the results of the 

pear referendum do not favor 

continuance, the pear order will be 

terminated. Otherwise, this suspension 

will remain in effect unless the pear 

industry recommends reactivation or 

termination of the Federal program. 

Referendum requirements for the 

most recent cycle of continuance 

referenda were suspended by USDA 

because the orders were being amended 

at the time (72 FR 12038, March 15, 

2007). USDA determined that it would 

be appropriate to allow the amended 

orders to operate for a period of time 

before asking growers to vote on 

continuance of the programs. The 

referenda ordered herein will thus be 

the first conducted since the orders 

were amended in 2006 (71 FR 41345, 

July 21, 2006). 

USDA has determined that 

continuance referenda are an effective 

means for determining whether growers 

favor the continuation of marketing 

order programs. USDA would consider 

terminating the orders if fewer than twothirds of the growers voting in the 

referenda or growers of less than twothirds of the volume of California 

nectarines, pears, and peaches 

represented in the referenda favor 

continuance of their programs. In 

evaluating the merits of continuance 

versus termination, USDA will consider 

the results of the continuance referenda 

and all other relevant information 

regarding operation of the orders. USDA 

will evaluate the orders’ relative 

benefits and disadvantages to growers, 

handlers, and consumers to determine 

whether continuing the orders would 

tend to effectuate the declared policy of 

the Act. 


wwoods2 on DSK1DXX6B1PROD with PROPOSALS_PART 1