[Federal Register Volume 71, Number 215 (Tuesday, November 7, 2006)]
[Rules and Regulations]
[Pages 65037-65041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-9112]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 71, No. 215 / Tuesday, November 7, 2006 / 
Rules and Regulations

[[Page 65037]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 958

[Docket No. FV06-958-1 IFR]


Onions Grown in Certain Designated Counties in Idaho, and Malheur 
County, OR; Change in Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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

SUMMARY: This rule changes the reporting requirements established under 
the Idaho-Eastern Oregon onion marketing order, which regulates the 
handling of onions grown in designated counties in Idaho and Oregon and 
is administered locally by the Idaho-Eastern Oregon Onion Committee. 
This rule: Establishes a credit application procedure for assessments 
paid on onions that are subsequently regraded, resorted, or repacked 
within the production area or diverted to exempt special purpose 
outlets; changes the reporting requirements for fresh onions for 
peeling, chopping, or slicing, and for special purpose shipments; adds 
``disposal'' as a special purpose shipment; and announces the 
Agricultural Marketing Service's (AMS) intention to request emergency 
approval by the Office of Management and Budget (OMB) of a new 
information collection. These changes are intended to enhance the 
efficient operation of the program and improve compliance with the 
other provisions.

DATES: Effective November 8, 2006; comments received by January 8, 2007 
will be considered prior to issuance of a final rule. Pursuant to the 
Paperwork Reduction Act, comments on the information collection burden 
that would result from this proposal must be received by January 8, 
2007.

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: <a href="/cdn-cgi/l/email-protection#c6aba9a7a4a2a9a5ada3b2e8a5aaa3b4ad86b3b5a2a7e8a1a9b0"><span class="__cf_email__" data-cfemail="1f72707e7d7b707c747a6b317c737a6d745f6a6c7b7e31787069">[email protected]</span></a> 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 be viewed at: 
http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Susan M. Hiller, Marketing Specialist 
or Gary D. Olson, Regional Manager, Northwest Marketing Field Office, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or E-mail: 
<a href="/cdn-cgi/l/email-protection#277452544649096f4e4b4b4255675254434609404851"><span class="__cf_email__" data-cfemail="ffac8a8c9e91d1b79693939a8dbf8a8c9b9ed1989089">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#98dff9eae1dcb6d7f4ebf7f6d8edebfcf9b6fff7ee"><span class="__cf_email__" data-cfemail="236442515a670d6c4f504c4d63565047420d444c55">[email protected]</span></a>.
    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: <a href="/cdn-cgi/l/email-protection#0c466d75224b79697e6e697e4c797f686d226b637a"><span class="__cf_email__" data-cfemail="357f544c1b7240504757504775404651541b525a43">[email protected]</span></a>.

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 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.''
    The Department of Agriculture (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 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.
    This rule establishes an application procedure for handlers to 
receive credit for assessments paid on onions that are subsequently 
regraded, resorted, or repacked within the production area or diverted 
to exempt special purpose outlets; changes the reporting requirements 
for fresh onions for peeling, chopping, or slicing; changes the 
reporting requirements for special purpose shipments; adds ``disposal'' 
as a special purpose shipment; and announces the Agricultural Marketing 
Service's intention to request emergency approval by the Office of 
Management and Budget (OMB) of a new information collection. These 
actions were unanimously recommended by the Committee at a meeting on 
June 15, 2006.
    Section 958.53 provides authority for the Committee, with the 
approval of USDA, to exempt special purpose shipments from assessment 
and handling regulations established under the order. Under this 
authority, Sec.  958.328(e) exempts onions for planting, livestock 
feed, charity, dehydration, canning, freezing, extraction and pickling 
from the minimum grade, size, maturity, assessment and inspection 
requirements. Section 958.56 provides authority for the Committee, with 
the approval of USDA, to prescribe safeguards to prevent onions from

[[Page 65038]]

entering channels of trade for other than the purpose authorized. 
Safeguards in effect are delineated in Sec.  958.328(f). Section 958.65 
provides authority for the Committee, with the approval of USDA, to 
require such reports and other information as may be necessary for the 
Committee to perform its duties.
    The Committee conducted an industry-wide meeting on January 17, 
2006, to review the compliance and safeguard provisions of the order. 
The Committee appointed a Compliance Subcommittee, which met on May 16, 
2006, to review the comments received. The three main areas of concern 
expressed by industry members were: (1) The need to provide a procedure 
for handlers to obtain credit for assessments paid on onions that are 
subsequently regraded, resorted, or repacked within the production area 
or diverted into exempt special purpose outlets; (2) improving the 
method of reporting fresh market onions for peeling, chopping, or 
slicing; and (3) improving and streamlining the safeguards for special 
purpose shipments. An overriding concern expressed was the need to 
decrease the reporting burden on receivers (buyers) of Idaho-Eastern 
Oregon onions.
    The Committee met on June 15, 2006, to hear the report of the 
Compliance Subcommittee. The Committee thereafter unanimously 
recommended changing the reporting requirements established under the 
order to address these three areas of concern. The Committee 
recommended adding a new Sec.  958.250 and a new form, ``Assessment 
Credit Report'', which establishes a procedure for those handlers who 
would like credit for assessments paid on onions in accordance with 
Sec. Sec.  958.42 and 958.240 that are subsequently regraded, resorted, 
or repacked within the production area, or shipped into special purpose 
outlets. The Committee also recommended that ``disposal'' be added to 
Sec.  958.328(e) as a special purpose to allow handlers to receive 
assessment credit on onions for which assessments have been paid when 
such onions are disposed of. Disposal means destroying the onions, 
generally by burying the onions in special pits.
    The Committee unanimously recommended changing the reporting 
requirements for fresh onions for peeling, chopping, or slicing in 
Sec.  958.328(d) by removing receiver reporting requirements. 
Previously, the name of Form No. FV-37, was the ``Rehandling of Onions 
Report'', which handlers found confusing and unrelated to the actual 
activity. The form has been renamed ``Fresh Cut Report'' (same form 
number) which will be submitted by handlers for multiple shipments 
rather than individual shipments.
    The Committee agreed with industry concerns that reporting burdens 
should not be placed on the receivers of Idaho-Eastern Oregon onions. 
Receivers are able to acquire onions from regions that do not have a 
marketing order in effect and avoid reporting requirements. The 
Committee received reports that handlers in the production area may 
have lost sales due to receiver reporting requirements.
    This rule will also change the safeguard reporting requirements in 
Sec.  958.328(f) by clarifying that the safeguard procedures are 
required only for onions shipped outside the Idaho-Eastern Oregon onion 
production area.
    Under the new safeguard procedures, with newly revised forms, 
handlers will notify the Committee and obtain a Certificate of 
Privilege permit number by completing form FV-34, ``Application to Make 
Special Purpose Shipments--Certificate of Privilege.'' Receivers of 
special purpose onions will only need to complete form FV-36, ``Special 
Purpose Shipment Receiver Certification'' indicating they will use the 
onions in an approved special purpose outlet. Receivers will no longer 
be required to submit form FV-35, ``Onion Diversion Report'' for every 
shipment. Handlers will submit additional information to the Committee 
on form FV-34, ``Application to Make Special Purpose Shipments--
Certificate of Privilege.'' This information would include type of 
sale, total hundredweight for the sale, and the type of container for 
the sale. This form can be used for multiple shipments.
    These changes are intended to enhance compliance of the special 
purpose shipment procedures established under the order and contribute 
to the efficient operation of the program.
    And finally, this rule reorganizes the rules and regulations issued 
under this order by removing the heading ``Subpart--Assessment Rates'' 
and adding a new heading ``Subpart--Rules and Regulations.''

Initial 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 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 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.
    There are approximately 250 producers of onions in the production 
area, 38 handlers, and 24 receivers subject to regulation under the 
order. Small agricultural producers are defined by the Small Business 
Administration (SBA) (13 CFR 121.201) as those having annual receipts 
of less than $750,000, and small agricultural service firms are defined 
as those whose annual receipts are less than $6,500,000.
    The National Agricultural Statistics Service (NASS) reported in the 
``Vegetables 2005 Summary'', published in January 2006, that the total 
F.O.B. value of onions in the regulated production area for 2005 was 
$148,685,000. Therefore, based on an industry of 250 producers, 38 
handlers, and 24 receivers, it can be concluded that the majority of 
producers, handlers, and receivers of Idaho-Eastern Oregon onions may 
be classified as small entities.
    This rule would add a new Sec.  958.250 which will establish an 
application procedure for handlers to receive credit for assessments 
paid on onions in accordance with Sec. Sec.  958.42 and 958.240 and are 
subsequently regraded, resorted, repacked within the production area, 
or sent to exempt special purpose outlets. This rule also adds 
``disposal'' as a special purpose shipment.
    The rule changes the reporting requirements for fresh onions for 
peeling, chopping, or slicing and for special purpose shipments by 
reducing receiver reporting requirements and streamlining handler 
reporting requirements.
    Regarding the impact of these actions on affected entities, this 
rule will impose minimal additional costs. This rule establishes a 
procedure to make it easier for handlers to apply for an assessment 
credit. The change in the reporting requirements for fresh onions for 
peeling, chopping, or slicing, as well as the change to the safeguards 
for special purpose shipments were requested by industry members and 
would decrease the overall reporting burden. The benefits of this rule 
are not expected to be disproportionately greater or less for small 
handlers or producers than for larger entities.
    An alternative to these actions would be to have handlers report 
onion shipments rather than utilizing the information from each 
handler's inspection certificates. However, most

[[Page 65039]]

handlers were opposed to this alternative because it would increase 
their reporting burden.
    This action imposes an additional reporting burden on onion 
handlers but eliminates reporting by receivers of onions. This action 
requires a new Committee form and the revision of four Committee forms, 
previously approved by OMB under OMB No. 0581-0178, Vegetable and 
Specialty Crops.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), this notice announces that the AMS is requesting emergency 
approval from the Office of Management and Budget (OMB) for a new 
information collection request, under OMB No. 0581-NEW, and to revise 
two forms previously approved under OMB No. 0581-0178, Vegetable and 
Specialty Crops. The emergency request was necessary because 
insufficient time was available to follow normal clearance procedures. 
Upon approval of this new collection by OMB, it will be merged with the 
forms currently approved for use under OMB No. 0581-0178.
    As mentioned earlier, the Committee's reporting requirement 
recommendations involves the revision of four previously approved 
forms, under OMB No. 0581-0178, and the addition of one new form, under 
OMB No. 0581-NEW. Two of the revised forms, FV-36, ``Special Purpose 
Certificate for Handling Onions Which Do Not Meet Fresh Market 
Requirements'', which has been renamed ``Special Purpose Shipment 
Receiver Certification'', and FV-37, ``Rehandling of Onions Report'', 
which has been renamed to ``Fresh Cut Report''; have been submitted to 
OMB and were approved on July 12, 2006. The remaining two previously 
approved forms which are being revised, FV-34, ``Application to Make 
Special Purpose Shipments--Certificate of Privilege'', FV-35, ``Onion 
Diversion Report'', and the new form ``Assessment Credit Report'', are 
being submitted to OMB through an emergency approval request of a new 
information collection. Upon approval, the new collection will be 
merged into OMB No. 0581-0178, Vegetable and Specialty Crops.
    Title: Onions Grown in Designated Counties in Idaho, and Malheur 
County, Oregon.
    OMB Number: 0581-NEW.
    Expiration Date of Approval: Emergency request.
    Type of Request: New collection.
    Abstract: The information collection requirements in this request 
are essential to provide handlers with a procedure to receive credit 
for assessments paid on onions that are subsequently regraded, 
resorted, or repacked within the production area, or shipped into 
exempt special purpose outlets.
    On June 15, 2006, the Committee unanimously recommended changing 
the order's reporting requirements. This rule establishes an 
application procedure for handlers to receive credit for assessments 
paid on onions that are subsequently regraded, resorted, or repacked 
within the production area or diverted to exempt special purpose 
outlets. In order to receive a credit, handlers would complete the 
``Assessment Credit Report'' and submit it to the Committee.
    This rule also changes reporting requirements for fresh onions for 
peeling, chopping, or slicing, by having handlers complete form FV-37, 
``Fresh Cut Report.'' Finally, this rule changes the safeguards for 
special purpose shipments. Handlers who desire to make a special 
purpose shipment must complete form FV-34, ``Application to Make 
Special Purpose Shipments--Certificate of Privilege.'' This form would 
be completed for each volume or other sale of onions destined to be 
shipped outside the production area to canners, dehydrators, 
extractors, freezers, or picklers. The Committee will evaluate the 
application and issue a Certificate of Privilege permit number, if 
approved. The Committee may contact a receiver of a special purpose 
shipment to verify each application by having the receiver complete 
form FV-36, ``Special Purpose Shipment Receiver Certification.'' 
Finally, the handler will submit form FV-35, ``Onion Diversion 
Report'', for each Certificate of Privilege permit number with the 
frequency dependent upon the type of sale and container.
    These changes are being made at the request of the industry to 
provide a procedure for handlers to obtain credit for assessments paid 
on onions that are subsequently regraded, resorted, or repacked within 
the production area or diverted into exempt special purpose outlets. 
These changes are also intended to improve the method of reporting 
fresh market onions for peeling, chopping, or slicing; improve and 
streamline the safeguards for special purpose shipments; and improve 
compliance with the order. Committee members are confident that these 
revisions will also improve the accuracy of the information submitted 
while responding to the needs of the handlers for efficiency.
    The information collected is used only by authorized 
representatives of the USDA, including AMS, Fruit and Vegetable 
Programs regional and headquarters' staff, and authorized employees of 
the Committee. Authorized Committee employees and the industry are the 
primary users of the information and AMS is the secondary user.
    The request for approval of the new information collection under 
the order is as follows:

``Assessment Credit Report''

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 8 minutes per response.
    Respondents: Idaho-Eastern Oregon onion handlers.
    Estimated Number of Respondents: 35.
    Estimated Number of Responses per Respondent: 20.
    Estimated Total Annual Burden on Respondents: 91 hours.
    The request for approval of the revised information collection 
under OMB No. 0581-0178, order is as follows:

Form FV-34, ``Application To Make Special Purpose Shipments--
Certificate of Privilege''

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 8 minutes per response.
    Respondents: Idaho-Eastern Oregon onion handlers.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: 3.
    Estimated Total Annual Burden on Respondents: 7.8 hours.

Form FV-35, ``Onion Diversion Report''

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 8 minutes per response.
    Respondents: Idaho-Eastern Oregon onion handlers.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: 100.
    Estimated Total Annual Burden on Respondents: 260 hours.
    Comments: Comments are invited on: (1) Whether this collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility,

[[Page 65040]]

and clarity of the information to be collected; and (4) ways to 
minimize the burden of the collection of information on those who are 
to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Comments should reference OMB No. 0581-NEW and Onions Grown in 
Designated Counties in Idaho, and Malheur County, Oregon, and be sent 
to the USDA in care of the Docket Clerk at the address above. All 
comments received will be available for public inspection during 
regular business hours at the same address.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments will also become a matter of 
public record. As mentioned before, because there was insufficient time 
for a normal clearance procedure and prompt implementation is needed, 
AMS is requesting emergency approval from OMB for the use of this 
collection of forms for the 2006 regulation period, which began in 
August 2006. Upon publication of the final rule, this collection will 
be merged with the forms currently approved for use under OMB No. 0581-
0178 ``Generic OMB Vegetable Crops.''
    As with other similar 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.
    AMS is committed to complying with the E-Government Elimination 
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.
    Further, the Committee's meeting on June 15, 2006, was widely 
publicized throughout the onion industry and all interested persons 
were invited to attend the meeting and participate in Committee 
deliberations. Like all Committee meetings, the June 15, 2006, meeting 
was a public meeting and all entities, both large and small, were able 
to express their views on this issue.
    Also, the Committee has a number of appointed sub-committees to 
review certain issues and make recommendation to the Committee. The 
Compliance Subcommittee met on May 16, 2006, and discussed these issues 
in detail. All interested persons were invited to attend this meeting 
and participate in the industry's deliberations. Finally, interested 
persons are invited to submit information on the regulatory and 
informational impacts of this action on small businesses.
    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.
    In summary, this rule establishes an application procedure for 
handlers to receive credit for assessments paid on onions that are 
subsequently regraded, resorted, or repacked within the production area 
or diverted to exempt special purpose outlets; changes the reporting 
requirements for fresh onions for peeling, chopping, or slicing; adds 
``disposal'' as a special purpose shipment; changes the reporting 
requirements for special purpose shipments; and announces the 
Agricultural Marketing Service's intention to request emergency 
approval by the Office of Management and Budget (OMB) of a new 
information collection. This rule removes reporting requirements for 
receivers and streamlines handler reporting requirements. These changes 
are beneficial to the compliance of the special purpose shipment 
procedures established under the marketing order and contribute to the 
efficient operation of the program. This rule invites comments on these 
changes. Any comments received will be considered prior to finalization 
of this rule.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
this interim final rule, as hereinafter set forth, will tend to 
effectuate the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) This rule reduces industry reporting and recordkeeping 
requirements; (2) the Idaho-Eastern Oregon onion marketing season began 
in August and these changes should be in effect as soon as possible to 
achieve their intended purpose; (3) the Committee unanimously 
recommended these changes at a public meeting and interested parties 
had an opportunity to provide input; (4) this rule provides a 60-day 
comment period on the regulation changes which is deemed appropriate, 
and a 60-day comment period on the reporting requirement changes, and 
any comments received will be considered prior to finalization of this 
rule.

List of Subjects in 7 CFR Part 958

    Onions, Marketing agreements, Reporting and recordkeeping 
requirements.


0
For the reasons set forth in the preamble, 7 CFR part 958 is amended as 
follows:

PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND 
MALHEUR COUNTY, OREGON

0
1. The authority citation for 7 CFR part 958 continues to read as 
follows:

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


0
2. Add new subpart heading ``Subpart--Rules and Regulations'' before 
``Sec.  958.112 Fiscal Period.''


0
3. Remove Subpart heading ``Subpart--Assessment Rates'' after Sec.  
958.160.


0
4. Add a new Sec.  958.250 under subpart Rules and Regulations to read 
as follows:


Sec.  958.250  Assessment Credit Report.

    Each handler may receive a credit for assessments on onions that 
have been levied in accordance with Sec. Sec.  958.42 and 958.240 and 
are subsequently regraded, resorted, or repacked within the production 
area, or shipped in accordance with Sec.  958.328(e) by furnishing the 
``Assessment Credit Report'' and such other information as required to 
the committee.


0
5. Revise paragraphs (d), (e) and (f) of Sec.  958.328 to read as 
follows;


Sec.  958.328  Handling regulation.

* * * * *
    (d) Onions for peeling, chopping, or slicing. Onions that have been 
inspected and certified as meeting the requirements of paragraphs (a) 
and (b) of this section and that are subsequently peeled, chopped, or 
sliced for fresh market within the production area may be handled 
without reinspection: Provided the following:
    (1) Each handler making shipments of onions for alteration or 
performing alteration by peeling, chopping, or slicing must furnish the 
committee the following information on the ``Fresh Cut Report'' and 
such other documents as required:

[[Page 65041]]

    (i) Business name, address, telephone number, signature, and the 
date the form was signed;
    (ii) The date of peeling, chopping, or slicing;
    (iii) Inspection certificate number;
    (iv) The quantity of onions; and
    (v) Such other information as may be required by the committee.
    (2) Handlers who peel, chop, or slice onions produced outside the 
production area must provide the committee with documentation showing 
that the onions so prepared were produced outside the production area.
    (e) Special purpose shipments. The minimum grade, size, maturity, 
assessment, and inspection requirements of this section shall not be 
applicable to shipments of onions for any of the following purposes:
    (1) Planting,
    (2) Livestock feed,
    (3) Charity,
    (4) Dehydration,
    (5) Canning,
    (6) Freezing,
    (7) Extraction,
    (8) Pickling, and
    (9) Disposal.
    In addition, the minimum grade, size, and maturity requirements set 
forth in paragraph (a) of this section shall not be applicable to 
shipments of pearl onions, but the maximum size requirement in 
paragraph (h) of this section and the assessment and inspection 
requirements shall be applicable to shipments of pearl onions.
    (f) Safeguards. Each handler making shipments of onions outside the 
production area for dehydration, canning, freezing, extraction, or 
pickling pursuant to paragraph (e) of this section shall:
    (1) Furnish ``Application to Make Special Purpose Shipments--
Certificate of Privilege'' and such other information to the committee 
as required. The committee will review and verify each ``Application to 
Make Special Purpose Shipments--Certificate of Privilege'' and notify 
the handler of approval or disapproval. The committee may contact the 
receiver or receiver's agent of the special purpose shipment for 
verification and request the receiver or receiver's agent to complete a 
``Special Purpose Shipment Receiver Certification'';
    (2) Bill or consign each shipment directly to the applicable 
receiver or receiver's agent of the special purpose shipment;
    (3) Furnish ``Onion Diversion Report'' and such other information 
to the committee as required. Failure of the handler to furnish such 
report and information as required to the committee may be cause for 
cancellation of such handlers' Certificate of Privilege. Upon 
cancellation of any such Certificate of Privilege the handler may 
appeal to the committee for reconsideration. The committee may audit a 
receiver or receiver's agent of the special purpose shipment to verify 
reports and information submitted by handlers. Failure of a receiver or 
receiver's agent of a special purpose shipment to comply with the 
committee may be cause for cancellation of the receiver's or receiver 
agent's eligibility to receive further special purpose shipments from 
the production area. Upon cancellation of any such Certificate of 
Privilege the receiver or the receiver's agent may appeal to the 
committee for reconsideration.
* * * * *

    Dated: November 3, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 06-9112 Filed 11-3-06; 11:11 am]
BILLING CODE 3410-02-P


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