2170 Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Rules and Regulations 

• Describe any non-synthetic or 

synthetic substances on the National 

List or alternative cultural methods that 

could be used in place of the petitioned 

substance. 

G. Inclusion of a Non-Organically 

Produced Agricultural Substance Onto 

the National List, § 205.606 

• Provide a comparative description 

on why the non-organic form of the 

substance is necessary for use in organic 

handling. 

• Provide current and historical 

industry information/research/evidence 

that explains how or why the substance 

cannot be obtained organically in the 

appropriate form, appropriate quality, 

and appropriate quantity to fulfill an 

essential function in a system of organic 

handling. 

• Describe industry information on 

substance non-availability of organic 

sources including but not limited to the 

following guidance regarding 

commercial availability evaluation 

criteria: (1) Regions of production, 

including factors such as climate and 

number of regions; (2) Number of 

suppliers and amount produced; (3) 

Current and historical supplies related 

to weather events such as hurricanes, 

floods, and droughts that may 

temporarily halt production or destroy 

crops or supplies; (4) Trade related 

issues such as evidence of hoarding, 

war, trade barriers, or civil unrest that 

may temporarily restrict supplies, and 

(5) Other issues which may present a 

challenge to a consistent supply. 

H. Removal of a Non-Organically 

Produced Agricultural Substance From 

the National List, § 205.606 

• Provide a comparative description 

as to why the non-organic form of the 

substance is not necessary for use in 

organic handling. 

• Provide current and historical 

industry information/research/evidence 

that explains how or why the substance 

can be obtained organically in the 

appropriate form, appropriate quality, 

and appropriate quantity to fulfill an 

essential function in a system of organic 

handling. 

• Provide new industry information 

on substance availability of organic 

sources including but not limited to the 

following guidance commercial 

availability evaluation criteria: (1) 

Region of production, including factors 

such as climate and number of regions; 

(2) Number of suppliers and amount 

produced; (3) Current and historical 

supplies related to weather events such 

as hurricanes, floods, or droughts that 

temporarily halt production or destroy 

crops or supplies; (4) Trade related 

issues such as evidence of hoarding, 

war, trade barriers, and civil unrest that 

may temporarily restrict supplies and; 

(5) Any other issues which may present 

a challenge to a consistent supply. 

13. A Confidential Business 

Information Statement which describes 

the specific required information 

contained in the petition that is 

considered to be Confidential Business 

Information (CBI) or confidential 

commercial information and the basis 

for that determination. Petitioners 

should limit their submission of 

confidential information to that needed 

to address the areas for which this 

notice requests information. Final 

determination regarding whether to 

afford CBI treatment to submitted 

petitions will be made by USDA 

pursuant to 7 CFR 1.27(d). Instructions 

for submitting CBI to the National List 

Petition process are presented in the 

instructions below: 

(a) Financial or commercial 

information the petitioner does not want 

disclosed for competitive reasons may 

be claimed as CBI. Applicants must 

submit a written justification to support 

each claim. 

(b) ‘‘Trade secrets’’ (information 

relating to the production process, such 

as formulas, processes, quality control 

tests and data, and research 

methodology) may be claimed as CBI. 

This information must be (1) 

commercially valuable, (2) used in the 

applicant’s business, and (3) maintained 

in secrecy. 

(c) Each page containing CBI material 

must have ‘‘CBI Copy’’ marked in the 

upper right corner of the page. In the 

right margin, mark the CBI information 

with a bracket and ‘‘CBI.’’

(d) The CBI-deleted copy should be a 

facsimile of the CBI copy, except for 

spaces occurring in the text where CBI 

has been deleted. Be sure that the CBIdeleted copy is paginated the same as 

the CBI copy (The CBI-deleted copy of 

the application should be made from the 

same copy of the application which 

originally contained CBI). Additional 

material (transitions, paraphrasing, or 

generic substitutions, etc.) should not be 

included in the CBI-deleted copy. 

(e) Each page with CBI-deletions 

should be marked ‘‘CBI-deleted’’ at the 

upper right corner of the page. In the 

right margin, mark the place where the 

CBI material has been deleted with a 

bracket and ‘‘CBI-deleted.’’

(f) If several pages are CBI-deleted, a 

single page designating the numbers of 

deleted pages may be substituted for 

blank pages. (For example, ‘‘pages 7 

through 10 have been CBI-deleted.’’) 

(g) All published references that 

appear in the CBI copy should be 

included in the reference list of the CBIdeleted copy. Published information 

cannot be claimed as confidential. 

(h) Final determination regarding 

whether to afford CBI treatment to 

submitted petitions will be made by 

USDA pursuant to 7 CFR 1.27(d). If a 

determination is made to deny CBI 

treatment, the petitioner will be 

afforded an opportunity to withdraw the 

submission. 

No additional collection or 

recordkeeping requirements are 

imposed on the public by this rule. 

Accordingly, OMB clearance is not 

required by § 305(h) of the Paperwork 

Reduction Act of 1995, 44 U.S.C. 3501, 

et seq., or OMB’s implementation 

regulation at 5 CFR, part 1320. 

Authority: 7 U.S.C. 6501–6522. 

Dated: January 10, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E7–596 Filed 1–17–07; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 980 

[Docket No. FV06–980–1 FR] 

Vegetables, Import Regulations; Partial 

Exemption to the Minimum Grade 

Requirements for Fresh Tomatoes 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule provides a partial 

exemption to the minimum grade 

requirements under the tomato import 

regulation. The import regulation is 

authorized under section 8e of the 

Agricultural Marketing Agreement Act 

of 1937 (Act). Section 8e requires 

imported tomatoes to meet the same or 

comparable grade and size requirements 

as those in effect under Federal 

Marketing Order No. 966 (order). The 

order regulates the handling of tomatoes 

grown in Florida. A separate rule to 

amend the rules and regulations under 

the order to exempt UglyRipeTM

(UglyRipe) tomatoes from the shape 

requirements associated with the U.S. 

No. 2 grade is being issued by 

Department of Agriculture (USDA). This 

rule provides the same partial 

exemption under the import regulation 

so it will conform to the regulations for 

Florida tomatoes under the order. 

DATES: Effective Date: This final rule 

becomes effective January 19, 2007. 


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Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Rules and Regulations 2171 

FOR FURTHER INFORMATION CONTACT: 

William Pimental or Christian Nissen, 

Southeast Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (863) 324–

3375, Fax: (863) 325–8793; or e-mail: 

william.pimental@usda.gov or 

christian.nissen@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 final 

rule is issued under section 8e of the 

Agricultural Marketing Agreement Act 

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

hereinafter referred to as the ‘‘Act,’’

which provides that whenever certain 

specified commodities, including 

tomatoes, 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 

commodity. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This final 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. 

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 final rule provides a partial 

exemption to the minimum grade 

requirements for UglyRipe tomatoes 

imported into the United States. The 

import requirements for tomatoes 

specify that tomatoes must meet at least 

a U.S. No. 2 grade. A final rule to amend 

the rules and regulations under the 

order to exempt UglyRipe tomatoes from 

the shape requirements associated with 

the U.S. No. 2 grade is being issued 

separately by USDA. This rule provides 

the same partial exemption under the 

import regulation so it conforms to the 

regulations for Florida tomatoes under 

the order. 

The order provides the authority for 

the establishment of grade requirements 

for Florida tomatoes. Section 966.323 of 

the order specifies, in part, the 

minimum grade requirements for 

tomatoes grown in Florida. The current 

minimum grade requirement for Florida 

tomatoes is a U.S. No. 2. The specifics 

of this grade requirement are listed 

under the U.S. Standards for Grades of 

Fresh Tomatoes (7 CFR 51.1855–

51.1877). 

The U.S. Standards for Grades of 

Fresh Tomatoes (Standards) specify the 

criteria tomatoes must meet to grade as 

a U.S. No. 2, including that they must 

be reasonably well formed, and not 

more than slightly rough. These two 

factors relate specifically to the shape of 

the tomato. The definitions section of 

the Standards defines reasonably well 

formed as not decidedly kidney shaped, 

lopsided, elongated, angular, or 

otherwise decidedly deformed. The 

term slightly rough means that the 

tomato is not decidedly ridged or 

grooved. 

UglyRipe tomatoes are a trademarked 

tomato variety bred to look and taste 

like an heirloom-type tomato. One of the 

characteristics of this variety is its 

appearance. UglyRipe tomatoes are 

often shaped differently from other 

round tomatoes. Depending on the time 

of year and the weather, UglyRipe 

tomatoes are concave on the stem end 

with deep, ridged shoulders. They can 

also appear kidney shaped and 

lopsided. Because of this variance in 

shape and appearance, UglyRipe 

tomatoes can have difficulty meeting the 

shape requirements of the U.S. No. 2 

grade. 

This rule provides UglyRipe tomatoes 

with a partial exemption from the grade 

requirements under the import 

regulation. UglyRipe tomatoes are only 

exempt from the shape requirements of 

the grade and are still required to meet 

all other aspects of the U.S. No. 2 grade. 

The UglyRipe tomato also continues to 

be required to meet all other 

requirements under the import 

regulation, such as size and inspection. 

Prior to the 1998–99 season, the 

Florida Tomato Committee (Committee), 

which locally administers the order, 

recommended that the minimum grade 

be increased from a U.S. No. 3 to a U.S. 

No. 2. A conforming change was also 

made to the import regulation. Some 

Committee members have stated that a 

large part of the volume of the standard 

commercial varieties of tomatoes which 

fail to make the grade are rejected 

because of their shape and appearance. 

Consequently, there was some industry 

concern that providing an exemption for 

the UglyRipe tomato could result in the 

shipment of U.S. No. 3 grade tomatoes 

of other varieties, contrary to the 

objectives of the exemption and the 

order. 

To address this concern, the 

producers of UglyRipe tomatoes 

pursued entry into USDA’s Identity 

Preservation (IP) program. This program 

was developed by the Agricultural 

Marketing Service to assist companies 

in marketing products having unique 

traits. The program provides 

independent, third-party verification of 

the segregation of a company’s unique 

product at every stage, from seed, 

production and processing, to 

distribution. The UglyRipe tomato was 

granted positive program status in early 

2006. 

This partial exemption only extends 

to UglyRipe tomatoes covered under the 

IP program. As such, this should help 

ensure that only UglyRipe tomatoes are 

shipped under the exemption. In 

addition, this exemption is contingent 

upon imported UglyRipe tomatoes 

continuing to meet the specific 

requirements related to imports 

established under the IP program. 

This final rule exempts imported 

UglyRipe tomatoes from the shape 

requirements associated with the U.S. 

No. 2 grade. This change increases the 

volume of UglyRipe tomatoes that will 

meet order requirements, and will help 

increase shipments and availability of 

these tomatoes. 

This rule brings the tomato import 

regulation into conformity with the 

changes to the domestic order making 

the import requirements correspond to 

the domestic requirements under the 

order by amending 7 CFR 980.212 of the 

import requirements. 

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 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. 


jlentini on PROD1PC65 with RULES
2172 Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Rules and Regulations 

There are approximately 225 

importers of tomatoes subject to the 

regulation. Small agricultural service 

firms, which include tomato importers, 

are defined by the Small Business 

Administration (SBA) as those having 

annual receipts of less than $6,500,000 

(13 CFR 121.201). Based on information 

from the Foreign Agricultural Service, 

USDA, the dollar value of imported 

tomatoes ranged from around $1.05 

billion in 2003 to $1.08 billion in 2005. 

Using these numbers, the majority of 

tomato importers may be classified as 

small entities. 

Mexico, Canada, and the Netherlands 

are the major tomato producing 

countries exporting tomatoes to the 

United States. In 2005, shipments of 

tomatoes imported into the United 

States totaled 951,787 metric tons. 

Mexico accounted for 801,408 metric 

tons, 141,642 metric tons were imported 

from Canada, and 6,249 metric tons 

arrived from the Netherlands. 

This final rule provides a partial 

exemption to the minimum grade 

requirements for UglyRipe tomatoes 

imported into the United States. The 

import requirements for tomatoes 

specify that tomatoes must meet at least 

a U.S. No. 2 grade before they can be 

shipped and sold into the fresh market. 

A rule which amends the rules and 

regulations under the order to exempt 

UglyRipe tomatoes from the shape 

requirements associated with the U.S. 

No. 2 grade is being issued by USDA. 

Accordingly, under section 8e of the 

Act, imports of tomatoes have to meet 

the same or comparable grade, size, 

quality, and maturity requirements as 

the domestic product. This rule 

provides the same partial exemption for 

UglyRipe tomatoes under the import 

regulation so it conforms to the 

domestic regulation. 

This change would represent a small 

increase in costs for importers of 

UglyRipe tomatoes, primarily from costs 

associated with developing and 

maintaining an IP program. It is 

anticipated that these costs will be 

minimal. 

In addition, this rule makes additional 

volumes of UglyRipe tomatoes available 

for shipment. This should result in 

increased sales of UglyRipe tomatoes. 

Consequently, the benefits of this action 

should more than offset the associated 

costs. 

Section 8e of the Act provides that 

when certain domestically produced 

commodities, including tomatoes, are 

regulated under a Federal marketing 

order, imports of that commodity must 

meet the same or comparable grade, 

size, quality, and maturity requirements. 

Since a final rule is being initiated that 

provides a partial exemption to the 

minimum grade requirements under the 

domestic handling regulations, a 

corresponding change to the import 

regulations also needs to be 

accomplished. 

This final rule imposes no additional 

reporting or recordkeeping requirements 

beyond the IP program on either small 

or large tomato importers. Reports and 

forms required under the import 

regulations for tomatoes are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

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. 

Additionally, except for applicable 

domestic regulations, USDA has not 

identified any relevant Federal rules 

that duplicate, overlap, or conflict with 

this final rule. Further, the public 

comment received concerning the 

proposal did not address the initial 

regulatory flexibility analysis. 

A proposed rule concerning this 

action was published in the Federal 

Register on June 29, 2006 (71 FR 37016). 

Copies of the rule were mailed or sent 

via facsimile to all Committee members 

and tomato importers. Finally, the rule 

was made available through the Internet 

by USDA and the Office of the Federal 

Register. A 60-day comment period 

ending August 28, 2006, was provided 

to allow interested persons to respond 

to the proposal. 

One comment was received during 

the comment period in response to the 

proposal. The commenter, in opposition 

of the proposed exemption, stated that 

this action presents too many 

opportunities for domestic and import 

growers to cheat and sell tomatoes of 

inferior quality. 

USDA does not believe this partial 

exemption will create such an 

opportunity. There are safeguards in 

place to help address this issue. In 

addition to the existing inspection 

requirements, and compliance efforts, 

this partial exemption only extends to 

UglyRipe tomatoes covered under the IP 

program. This program was developed 

by AMS and provides independent, 

third-party verification of the 

segregation of a company’s product at 

every stage, from seed, production and 

processing, to distribution. This will 

help ensure that only UglyRipe 

tomatoes are shipped using this partial 

exemption, as only handlers covered 

under the IP program will be allowed to 

pack under the exemption. Further, 

USDA plans to closely monitor 

compliance with this exemption. 

Accordingly, no changes will be made 

to the rule as proposed, based on the 

comment 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. 

In accordance with section 8e of the 

Act, the United States Trade 

Representative has concurred with the 

issuance of this final rule. 

After consideration of all relevant 

matter 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. 

It is further found that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register (5 

U.S.C. 553) because the regulatory 

period will begin October 10, 2006. 

Also, a 60-day comment period was 

provided for in the proposed rule. 

List of Subjects in 7 CFR Part 980 

Food grades and standards, Imports, 

Marketing agreements, Onions, Potatoes, 

Tomatoes. 

■ For the reasons set forth in the 

preamble, 7 CFR part 980 is amended as 

follows: 

PART 980—VEGETABLES; IMPORT 

REGULATIONS 

■ 1. The authority citation for 7 CFR 

part 980 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Amend § 980.212, by adding a 

sentence at the end of paragraph (b)(1) 

to read as follows: 

§ 980.212 Import regulation; tomatoes. 

* * * * * 

(b) * * * 

(1) * * * Provided, That UglyRipeTM

tomatoes shall be graded and at least 

meet the requirements specified for U.S. 

No. 2 under the U.S. Standards for 

Grades of Fresh Tomatoes, except they 

are exempt from the requirements that 

they be reasonably well formed and not 

more than slightly rough, and Provided, 

Further that the UglyRipeTM tomatoes 

meet the requirements of the Identity 

Preservation program, Fresh Products 


jlentini on PROD1PC65 with RULES
Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Rules and Regulations 2173 

Branch, Fruit and Vegetable Programs, 

AMS, USDA. 

* * * * * 

Dated: January 11, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E7–593 Filed 1–17–07; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 989 

[Docket No. AMS–FV–06–0183; FV06–989–

2 FIR] 

Raisins Produced From Grapes Grown 

in California; Final Free and Reserve 

Percentages for 2005–06 Crop Natural 

(Sun-Dried) Seedless Raisins 

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 that established final volume 

regulation percentages for 2005–06 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 82.50 percent free and 

17.50 percent reserve. The percentages 

are intended to help stabilize raisin 

supplies and prices, and strengthen 

market conditions. 

DATES: Effective Date: February 20, 

2007. The volume regulation 

percentages apply to acquisitions of NS 

raisins from the 2005–06 crop until the 

reserve raisins from that crop are 

disposed of under the marketing order. 

FOR FURTHER INFORMATION CONTACT: Rose 

M. Aguayo, Marketing Specialist, or 

Kurt 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 (7 CFR part 989), 

both as amended, 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.’’

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 continues in effect 

the action that established final free and 

reserve percentages for NS raisins for 

the 2005–06 crop year, which began 

August 1, 2005, and ended July 31, 

2006. 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 continues in effect the 

action that established final volume 

regulation percentages for 2005–06 crop 

NS raisins covered under the order. The 

volume regulation percentages are 82.50 

percent free and 17.50 percent reserve 

and were established through an interim 

final rule published on May 23, 2006 

(71 FR 29567). Free tonnage raisins may 

be sold by handlers to any market. 

Reserve raisins must be held in a pool 

for the account of the Committee and 

are disposed of through various 

programs authorized under the order. 

For example, reserve raisins may be sold 

by the Committee to handlers for free 

use or to replace part of the free tonnage 

raisins they exported; used in diversion 

programs; carried over as a hedge 

against a short crop; or disposed of in 

other outlets not competitive with those 

for free tonnage raisins, such as 

government purchase, distilleries, or 

animal feed. 

The volume regulation percentages 

are intended to help stabilize raisin 

supplies and prices, and strengthen 

market conditions. The Committee 

unanimously recommended final 

percentages on January 26, 2006, and 

further justified its recommendation on 

March 16, 2006. 

Computation of Trade Demand 

Section 989.54 of the order prescribes 

procedures and time frames to be 

followed in establishing volume 

regulation. This includes methodology 

used to calculate percentages. Pursuant 

to § 989.54(a) of the order, the 

Committee met on August 15, 2005, to 

review shipment and inventory data, 

and other matters relating to the 

supplies of raisins of all varietal types. 

The Committee computed a trade 

demand for each varietal type for which 

a free tonnage percentage might be 

recommended. Trade demand is 

computed using a formula specified in 

the order and, for each varietal type, is 

equal to 90 percent of the prior year’s 

shipments of free tonnage and reserve 

tonnage raisins sold for free use into all 

market outlets, adjusted by subtracting 

the carryin on August 1 of the current 

crop year, and adding the desirable 

carryout at the end of that crop year. As 

specified in § 989.154(a), the desirable 

carryout for NS raisins shall equal the 

total shipments of free tonnage during 

August and September for each of the 

past 5 crop years, converted to a natural 

condition basis, dropping the high and 

low figures, and dividing the remaining 

sum by three, or 60,000 natural 

condition tons, whichever is higher. For 

all other varietal types, the desirable 

carryout shall equal the total shipments 

of free tonnage during August, 

September and one-half of October for 

each of the past 5 crop years, converted 

to a natural condition basis, dropping 

the high and low figures, and dividing 

the remaining sum by three. In 

accordance with these provisions, the 

Committee computed and announced 

the 2005–06 trade demand for NS 

raisins at 232,985 tons as shown below. 


jlentini on PROD1PC65 with RULES