17360 Federal Register / Vol. 72, No. 67 / Monday, April 9, 2007 / Rules and Regulations 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 959 

[Docket No. AMS–FV–07–0043; FV07–959–

2 IFR] 

Onions Grown in South Texas; 

Exemption of Onions for Export 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule exempts onions 

being shipped to export markets from 

regulations prescribed under the South 

Texas onion marketing order. The 

marketing order regulates the handling 

of onions grown in South Texas, and is 

administered locally by the South Texas 

Onion Committee (Committee). This 

rule provides a special purpose 

shipment exemption for onions being 

shipped to export markets. Under this 

change, onion shipments for export will 

be exempt from the grade, size, quality, 

and inspection requirements of the 

marketing order. This rule will provide 

handlers additional flexibility in 

marketing onions of different grades and 

quality in various markets outside of the 

U.S. This change is expected to help the 

South Texas onion industry develop 

additional markets for its onions, while 

increasing returns to producers and 

providing an increased supply of onions 

to help satisfy a rapidly developing 

export market. 

DATES: Effective April 10, 2007. 

Comments received by June 8, 2007 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; 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 

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. 

FOR FURTHER INFORMATION CONTACT: 

Belinda G. Garza, Regional Manager, 

Texas Marketing Field Office, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA; 

Telephone: (956) 682–2833, Fax: (956) 

682–5942, or E-mail: 

Belinda.Garza@usda.gov. 

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. 143 and Order No. 959, both as 

amended (7 CFR part 959), regulating 

the handling of onions grown in South 

Texas, 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. Such 

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 action, unanimously 

recommended by the Committee at its 

March 16, 2007, meeting, exempts onion 

export shipments from the grade, size, 

quality and inspection requirements 

prescribed under the South Texas onion 

marketing order. To effectuate the 

exemption, paragraphs (e)(1) and (f) of 

§ 959.322 are modified by adding the 

term ‘‘export’’ to the list of authorized 

special purpose shipment categories. 

Section 959.52 of the order authorizes 

the issuance, amendment, modification, 

suspension, or termination of 

regulations for grade, size, quality, 

maturity, pack, and container for any 

variety of onions grown in the 

production area. Section 959.53 

provides that regulations in effect 

pursuant to §§ 959.42, 959.52, or 959.60 

may be modified, suspended or 

terminated to facilitate the handling of 

onions for specified special purpose 

shipments, including export. Section 

959.60 provides that whenever onions 

are regulated pursuant to § 959.52, such 

onions must be inspected by the 

Federal-State Inspection Service, and 

certified as meeting the applicable 

requirements of such regulations. 

Section 959.322 contains the order’s 

handling regulations and includes 

provisions for grade, size, and 

inspection requirements, as well as a 

minimum quantity exemption, certain 

special purpose shipment exemptions, 

and experimental shipments. The 

handling regulations also provide 

safeguards to ensure that onions being 

shipped for special purposes are 

handled in accordance with order 

provisions. 

The Committee meets prior to and 

during each season to consider 

recommendations for modification, 

suspension, or termination of the 

regulatory requirements for South Texas 

onions which have been issued on a 

continuing basis. Committee meetings 

are open to the public and interested 

persons may express their views at these 

meetings. The USDA reviews 

Committee recommendations and 

information submitted by the 

Committee and other available 

information, and determines whether 

modification, suspension, or 

termination of the regulatory 

requirements would tend to effectuate 

the declared policy of the Act. 

Based on discussion at the March 16, 

2007, meeting, the Committee has 

conveyed to USDA that there currently 

exists an extremely short supply of 

onions in Mexico and other countries. 

This shortage has fueled a greater 

demand for all grades of onions. The 

Committee indicated that there is a great 

deal of interest in various foreign 

markets for onions of varying grade, 

size, and quality. Texas producers and 

handlers are characterized by the 

Committee as being eager to supply this 

demand and are thus fully in support of 

relaxing the handling regulations in an 

effort to provide onions for the 

developing export markets. 

The Committee also reports that the 

onion supply situation in Texas is 

hampered by a very short onion crop—


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Federal Register / Vol. 72, No. 67 / Monday, April 9, 2007 / Rules and Regulations 17361 

approximately 12,500 acres this year 

compared with approximately 18,000 

acres in past seasons—and recent cold 

weather that has caused some quality 

issues in certain areas of the South 

Texas onion production area. 

By exempting onions for export from 

the handling regulations, this rule will 

provide handlers additional flexibility 

in marketing onions of different grades 

and quality in various markets outside 

of the U.S. This change is expected to 

help the South Texas onion industry 

develop additional markets for its 

onions, while increasing returns to 

producers and providing an increased 

supply of onions to help satisfy a 

rapidly developing export market. 

Currently, all handlers making onion 

shipments for relief, charity, processing, 

or experimental purposes are required 

to apply for and obtain a Certificate of 

Privilege from the Committee to make 

such shipments. Once handlers are 

approved for such shipments, a Report 

of Special Purpose Onion Shipment 

form must be submitted to the 

Committee for each such onion 

shipment in order to ensure that the 

shipments are in accordance with 

Committee requirements. This action 

will allow all shipments to export 

markets to also be exempt from grade, 

size, quality, and inspection 

requirements and will be tracked 

through the use of the Report of Special 

Purpose Onion Shipment form. 

Initial Regulatory Flexibility Analysis 

Pursuant to the 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 so 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. 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. Small agricultural 

service firms are defined as those with 

annual receipts of less than $6,500,000. 

There are approximately 114 

producers of onions in the production 

area and approximately 38 handlers 

subject to regulation under the order. 

Most of the handlers are vertically 

integrated corporations involved in 

producing, shipping, and marketing 

onions. For the 2005–06 marketing year, 

the industry’s 38 handlers shipped 

onions produced on 17,694 acres with 

the average and median volume handled 

being 182,148 and 174,437 fifty-pound 

equivalents, respectively. In terms of 

production value, total revenues for the 

38 handlers were estimated to be $44.2 

million, with average and median 

revenues being $1.6 million and $1.12 

million, respectively. 

The South Texas onion industry is 

characterized by producers and 

handlers whose farming operations 

generally involve more than one 

commodity, and whose income from 

farming operations is not exclusively 

dependent on the production of onions. 

Alternative crops provide an 

opportunity to utilize many of the same 

facilities and equipment not in use 

when the onion production season is 

complete. For this reason, typical onion 

producers and handlers either produce 

multiple crops or alternate crops within 

a single year. 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that all of the 38 handlers regulated by 

the order would be considered small 

entities if only their onion revenues are 

considered. However, revenues from 

other farming enterprises could result in 

a number of these handlers being above 

the $6,500,000 annual receipt threshold. 

All of the 114 producers may be 

classified as small entities based on the 

SBA definition if only their revenue 

from onions is considered. 

This rule exempts onion export 

shipments from the grade, size, quality 

and inspection requirements prescribed 

under the South Texas onion marketing 

order. To realize the exemption, 

paragraphs (e) and (f) of § 959.322 are 

modified by adding the term ‘‘export’’ to 

the list of authorized special purpose 

shipment categories. 

Section 959.52 of the order authorizes 

the issuance of regulations for grade, 

size, quality, maturity, pack, and 

container for any variety of onions 

grown in the production area. Section 

959.53 provides for the exemption from 

the handling regulations certain kinds of 

onion shipments, including export. 

The Committee anticipates that this 

rule will not negatively impact small 

businesses. This rule exempts onions 

being shipped to export markets from 

the order’s handling regulations, and 

thus should provide enhanced 

marketing opportunities for all handlers, 

increased income for South Texas onion 

producers, and increased purchasing 

flexibility for foreign consumers. 

The Committee considered 

alternatives to this recommendation. 

One consideration would have relaxed 

the minimum quality requirement of all 

onion shipments, both domestic and 

export, from U.S. No. 1 to U.S. No. 2. 

Although this option may have taken 

care of the export market demands, it 

was rejected early in the discussion due 

to the problems associated with trying 

to market onions that grade less than 

U.S. No. 1 to U.S. consumers. Also 

briefly considered was the option of 

suspending the entire handling 

regulation, either on a temporary basis 

or indefinitely. The Committee also 

rejected this option as being too extreme 

for the current situation. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the information collection 

requirements that are contained in this 

rule are currently approved by the 

Office of Management and Budget 

(OMB), under OMB No. 0581–0178, 

Vegetable and Specialty Crops. This rule 

will impose minimal additional 

reporting or recordkeeping 

requirements, deemed to be 

insignificant, on both small and large 

onion handlers that export onions. 

As with all Federal marketing order 

programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. In addition, USDA has 

not identified any relevant Federal rules 

that duplicate, overlap or conflict with 

this rule. 

The 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. 

The Committee’s meeting was widely 

publicized throughout the South Texas 

onion industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations. Like all Committee 

meetings, the March 16, 2007, meeting 

was a public meeting and all entities, 

both large and small, were able to 

express their views on this issue. 

Furthermore, 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 


rwilkins on PROD1PC63 with RULES
17362 Federal Register / Vol. 72, No. 67 / Monday, April 9, 2007 / Rules and Regulations 

address in the FOR FURTHER INFORMATION

CONTACT section. 

This rule invites comments on the 

exemption of onions for export from the 

handling regulations prescribed under 

the Texas onion marketing order. 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 relaxes the order’s 

regulatory requirements by exempting 

South Texas onions shipped to the 

export market from the order’s handling 

regulations; (2) onion handlers are 

aware of this recommendation and need 

no additional time to comply with the 

relaxed requirements; (3) the shipping 

season for South Texas onions started 

around March 1, thus this rule should 

be effective as soon as possible to ensure 

that all handlers can take advantage of 

the relaxation for as much of the season 

as possible; and (4) this rule provides a 

60-day comment period, and any 

comments received will be considered 

prior to finalization of this rule. 

List of Subjects in 7 CFR Part 959 

Onions, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 959 is amended as 

follows: 

PART 959—ONIONS GROWN IN 

SOUTH TEXAS 

■ 1. The authority citation for 7 CFR 

part 959 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 959.322 is amended by 

revising paragraph (e)(1) and the 

introductory sentence of paragraph (f) to 

read as follows: 

* * * * * 

(e) Special purpose shipments. (1) 

The minimum grade, size, quality, and 

inspection requirements set forth in 

paragraphs (a) through (c) of this section 

shall not be applicable to shipments of 

onions for charity, relief, export, and 

processing if handled in accordance 

with paragraph (f) of this section. 

* * * * * 

(f) Safeguards. Each handler making 

shipments of onions for charity, relief, 

export, processing, or experimental 

purposes shall: 

* * * * * 

Dated: April 4, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 07–1749 Filed 4–4–07; 4:27 pm] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 989 

[Docket No. AMS–FV–07–0027; FV07–989–

1 IFR] 

Raisins Produced From Grapes Grown 

in California; Final Free and Reserve 

Percentages for 2006–07 Crop Natural 

(sun-dried) Seedless Raisins 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule establishes final 

volume regulation percentages for 2006–

07 crop Natural (sun-dried) Seedless 

(NS) raisins covered under the Federal 

marketing order for California raisins 

(order). The order regulates the handling 

of raisins produced from grapes grown 

in California and is locally administered 

by the Raisin Administrative Committee 

(Committee). The volume regulation 

percentages are 90 percent free and 10 

percent reserve. The percentages are 

intended to help stabilize raisin 

supplies and prices, and strengthen 

market conditions. 

DATES: Effective April 10, 2007. The 

volume regulation percentages apply to 

acquisitions of NS raisins from the 

2006–07 crop until the reserve raisins 

from that crop are disposed of under the 

marketing order. Comments received by 

June 8, 2007, 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; 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 

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. 

FOR FURTHER INFORMATION CONTACT: Rose 

M. Aguayo, 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: 

Rose.Aguayo@usda.gov or 

Kurt.Kimmel@usda.gov. 

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 

and Order No. 989, both as amended (7 

CFR part 989), regulating the handling 

of raisins produced from grapes grown 

in California, 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. Under the order provisions now 

in effect, final free and reserve 

percentages may be established for 

raisins acquired by handlers during the 

crop year. This rule establishes final free 

and reserve percentages for NS raisins 

for the 2006–07 crop year, which began 

August 1, 2006, and ends July 31, 2007. 

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 


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