This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

7655

Vol. 62, No. 34

Thursday, February 20, 1997

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Docket No. FV96–905–4 FIR]

Oranges, Grapefruit, Tangerines, and

Tangelos Grown in Florida; and Import

Regulations (Grapefruit); Relaxation of

the Minimum Size Requirement for Red

Grapefruit

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting as

a final rule, without change, the

provisions of an interim final rule

changing regulations under the Florida

citrus marketing order and grapefruit

import regulations. This rule relaxes the

minimum size requirement for red

seedless grapefruit from 39⁄16 inches in

diameter (size 48) to 35⁄16 inches in

diameter (size 56). The Citrus

Administrative Committee (Committee),

the agency that locally administers the

marketing order for oranges, grapefruit,

tangerines, and tangelos grown in

Florida, unanimously recommended

this change. This change will enable

handlers and importers to continue to

ship size 56 red seedless grapefruit for

the entire 1996–97 season.

EFFECTIVE DATE: March 24, 1997.

FOR FURTHER INFORMATION CONTACT:

Caroline C. Thorpe, Marketing

Specialist, Marketing Order

Administration Branch, F&V, AMS,

USDA, room 2525–S, P.O. Box 96456,

Washington, D.C. 20090–6456;

telephone: (202) 720–5127, Fax # (202)

720–5698; or William G. Pimental,

Marketing Specialist, Southeast

Marketing Field Office, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 2276, Winter Haven, Florida

33883–2276; telephone: (941) 299–4770,

Fax # (941) 299–5169. Small businesses

may request information on compliance

with this regulation by contacting: Jay

Guerber, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2525–S, Washington,

DC 20090–6456; telephone (202) 720–

2491; Fax # (202) 720–5698.

SUPPLEMENTARY INFORMATION: This final

rule is issued under Marketing

Agreement No. 84 and Marketing Order

No. 905 (7 CFR Part 905), as amended,

regulating the handling of oranges,

grapefruit, tangerines, and tangelos

grown in Florida, hereinafter referred to

as the order. The order is effective under

the Agricultural Marketing Agreement

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

674), hereinafter referred to as the

‘‘Act.’’

This rule is also issued under section

8e of the Act, which provides that

whenever certain specified

commodities, including grapefruit, are

regulated under a Federal marketing

order, imports of these commodities

into the United States are prohibited

unless they meet the same or

comparable grade, size, quality, or

maturity requirements as those in effect

for the domestically produced

commodities.

The Department 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 the Secretary 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, the Secretary 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 the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after the date of the

entry of the ruling.

There are no administrative

procedures which must be exhausted

prior to any judicial challenge to the

provisions of import regulations issued

under section 8e of the Act.

The order for Florida citrus provides

for the establishment of minimum grade

and size requirements. The minimum

grade and size requirements are

designed to provide fresh markets with

fruit of acceptable quality, thereby

maintaining consumer confidence for

fresh Florida citrus. This helps create

buyer confidence and contributes to

stable marketing conditions. This is in

the interest of producers, packers, and

consumers, and is designed to increase

returns to Florida citrus growers.

The Committee met October 8, 1996,

and unanimously recommended

relaxing the red seedless grapefruit

minimum size requirement from size 48

(39⁄16 inches diameter) to size 56 (35⁄16

inches diameter) for the period

November 11, 1996, through November

9, 1997. This relaxation was effectuated

by an interim final rule issued on

November 27, 1996 (61 FR 64251).

Absent this change, the size would have

reverted back to size 48 (39⁄16 inches

diameter), on November 11, 1996.

Section 905.52 of the order authorizes

the Committee to recommend minimum

grade and size regulations to the

Secretary. Section 905.306 (7 CFR

905.306) specifies minimum grade and

size requirements for different varieties

of fresh Florida grapefruit. Such

requirements for domestic shipments

are specified in Section 905.306 in

Table I of paragraph (a), and for export

shipments in Table II of paragraph (b).

Minimum grade and size requirements

for grapefruit imported into the United

States are currently in effect under

Section 944.106 (7 CFR 944.106), as

reinstated on July 26, 1993 (58 FR

39428, July 23, 1993). Export

requirements are not changed by this

rule.

In making its recommendation, the

Committee considered estimated supply

and current shipments. According to

both the National Agricultural Statistics

Service and the Committee, production

of red seedless grapefruit is expected to

increase in comparison to last year
7656 Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Rules and Regulations

(1995–96). Both sources estimate an

increase in production for this season

(1996–97) of about 10 percent to 31.5

million boxes and about 3 percent to 29

million boxes, respectively. The

Committee reports that it expects that

fresh market demand will be sufficient

to permit the shipment of size 56 red

seedless grapefruit grown in Florida

during the entire 1996–97 season. The

Committee believes that markets have

been developed for size 56 and that they

should continue to supply those

markets.

This size relaxation will enable

Florida grapefruit shippers to continue

shipping size 56 red seedless grapefruit

to the domestic market. This rule will

have a beneficial impact on producers

and handlers, since it will permit

Florida grapefruit handlers to make

available those sizes of fruit needed to

meet consumer needs. This is consistent

with current and anticipated demand in

those markets for the 1996–97 season,

and will provide for the maximization

of shipments to fresh market channels.

There are some exemptions to these

regulations provided under the order.

Handlers may ship up to 15 standard

packed cartons (12 bushels) of fruit per

day. Handlers may also ship unlimited

gift packages of up to 2 standard packed

cartons of fruit per day, which are

individually addressed and not for

resale. Fruit shipped for animal feed is

also exempt under specific conditions.

Fruit shipped to commercial processors

for conversion into canned or frozen

products or into a beverage base is not

subject to the handling requirements.

Section 8e of the Act provides that

when certain domestically produced

commodities, including grapefruit, are

regulated under a Federal marketing

order, imports of that commodity must

meet the same or comparable grade,

size, quality, and maturity requirements.

Since this rule continues a relaxation in

the minimum size requirement under

the domestic handling regulations, a

corresponding change to the import

regulations must also be considered.

Minimum grade and size

requirements for grapefruit imported

into the United States are currently in

effect under Section 944.106 (7 CFR

944.106), as reinstated on July 26, 1993

(58 FR 39428, July 23, 1993). This final

rule continues a relaxation the

minimum size requirements for

imported red seedless grapefruit to 35⁄16

inches in diameter (size 56) for the

period November 11, 1996, through

November 9, 1997, which reflects the

relaxation being made under the order

for grapefruit grown in Florida. The

minimum grade and size requirements

for Florida grapefruit are specified in

Section 905.306 (7 CFR 905.306) under

Marketing Order No. 905.

During the last 5 years (1991–1995)

imports to the United States of fresh

grapefruit averaged less than 2 percent

of total domestic consumption or less

than 15,000 tons per year. Based on

Departmental data, domestic

consumption averaged 766,000 tons per

year for that period. The major exporter

of grapefruit to the United States was

the Bahamas. The Bahamas shipped an

average of 95 percent of all grapefruit

imports to the United States during that

time period. Other exporters of

grapefruit to the United States included

Mexico, Jamaica, Dominican Republic,

Israel, and Thailand.

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

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.

There are approximately 100 handlers

of Florida citrus who are subject to

regulation under the marketing order,

approximately 11,000 producers of

citrus in the regulated area, and about

25 grapefruit importers. Small

agricultural service firms are defined by

the Small Business Administration (13

CFR 121.601) as those having annual

receipts of less than $5,000,000, and

small agricultural producers are defined

as those whose annual receipts are less

than $500,000. The majority of Florida

citrus producers and grapefruit

importers may be classified as small

entities. The majority of Florida citrus

handlers are estimated to be large

entities.

Based on Committee shipping data

and estimates for 1994–95,

approximately 60 percent of all handlers

handled 83 percent of Florida fresh

domestic and export citrus shipments.

The handlers included in this figure

shipped 500,000 or more boxes of fresh

citrus. The average price for Florida

citrus was $7.00 per 4⁄5 bushel box for

all domestic shipments. The actual

receipts of these handlers is estimated to

be higher as most of these handlers also

ship to processing markets, which are

not included in Committee data but

would contribute to total handler

receipts.

Section 905.52 of the order authorizes

the establishment of minimum size

regulations for Florida citrus, and

section 8e of the Act requires that when

such regulations are in effect for

grapefruit, the same or comparable

requirements be applied to imports.

This action continues a relaxation in

the minimum size requirement

established for Florida and imported red

seedless grapefruit from size 48 (39⁄16

inches diameter) to size 56 (35⁄16 inches

diameter) for the period November 11,

1996, through November 9, 1997.

Absent this change, the size would have

reverted back to size 48 (39⁄16 inches

diameter), on November 11, 1996.

This rule is expected to have a

positive impact on growers, handlers

and importers, as it will permit the

shipment of smaller size grapefruit,

allowing the industry to meet market

needs. There is a small established

market for size 56 red seedless

grapefruit and elimination of all

shipments of this size would cause a

hardship on the industry. The relaxed

minimum size requirement will be

applied to both small and large handlers

and importers in the same way.

Based on shipment data from the

Committee, total fresh Florida citrus

shipments for interstate and export

markets averaged 65,935 million 4⁄5

bushel boxes during the last 5 seasons

(1991–1995). During this period, size 56

red seedless grapefruit comprised

approximately 3 to 5 percent of total

fresh shipments, or 2 to 3 million 4⁄5

bushel boxes. The average price for the

last 5 seasons ranged from $5.54 to

$5.68 per 4⁄5 bushel box for size 56 red

seedless grapefruit. Thus, potential

revenue from the sale of this fruit would

range from $11 million to $17 million.

This relaxation is consistent with

current and anticipated market demand

for the 1996–97 season, and will

provide for the maximization of

shipments to fresh market channels. The

benefits of this rule are not expected to

be disproportionately greater or less for

small handlers, growers or importers

than for larger entities.

The Committee discussed an

alternative to this change, which was to

not relax the minimum size

requirement. This alternative would

have prevented the industry from

shipping fruit to current viable markets.

While only a small amount of the crop

is expected to be affected by relaxing the

minimum size, the Committee believes

that this relaxation will benefit
Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Rules and Regulations 7657

producers and handlers with smaller

fruit this season. Thus, the Committee

unanimously recommended this action.

This rule relaxes size requirements

under the order and the grapefruit

import regulations. Accordingly, this

action will not impose any additional

reporting or recordkeeping requirements

on either small or large Florida citrus

handlers or grapefruit importers. As

with all Federal marketing order

programs and companion import

regulations, reports and forms are

periodically reviewed to reduce

information requirements and

duplication by industry and public

sector agencies.

The Department has not identified

any relevant Federal rules that

duplicate, overlap or conflict with this

rule. In addition to minimum size

requirements, Florida and imported

grapefruit is required to meet minimum

grade requirements that are based on the

U.S. Standards for Grades of Florida

Grapefruit (7 CFR 51.750 through

51.784) which are issued under the

Agricultural Marketing Act of 1946 (7

U.S.C. 1621 through 1627).

Additionally, the Department of Citrus

for the State of Florida regulates citrus

through the Citrus Fruit Laws, Chapter

601, Florida Citrus Code of 1949.

The Committee’s meeting was widely

publicized throughout the Florida citrus

industry and all interested persons were

invited to attend the meeting and

participate in Committee deliberations

on all issues. Like all Committee

meetings, the October 8, 1996, meeting

was a public meeting and all entities,

both large and small, were able to

express views on this issue. The

Committee itself is composed of 18

members, of which 9 are producers, 8

are handlers and 1 is a public member.

The majority of Committee members

represent small entities.

The interim final rule was issued on

November 27, 1996, and published in

the Federal Register (61 FR 64251,

December 4, 1996), with an effective

date of November 11, 1996. That rule

amended §§ 905.306 and 944.106 of the

rules and regulations in effect. That rule

provided a 30-day comment period

which ended January 3, 1997. No

comments were received.

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

material presented, including the

Committee’s recommendation, and

other available information, it is found

that finalizing the interim final rule,

without change, as published in the

Federal Register (61 FR 64251,

December 4, 1996) will tend to

effectuate the declared policy of the Act.

List of Subjects

7 CFR Part 905

Grapefruit, Marketing agreements,

Oranges, Reporting and recordkeeping

requirements, Tangelos, Tangerines.

7 CFR Part 944

Avocados, Food grades and standards,

Grapefruit, Grapes, Imports, Kiwifruit,

Limes, Olives, Oranges.

For the reasons set forth above, 7 CFR

parts 905 and 944 are amended as

follows:

PART 905—ORANGES, GRAPEFRUIT,

TANGERINES, AND TANGELOS

GROWN IN FLORIDA

PART 944—FRUITS; IMPORT

REGULATIONS

Accordingly, the interim final rule

amending 7 CFR parts 905 and 944

which was published at 61 FR 64251 on

December 4, 1996, is adopted as a final

rule without change.

Dated: February 13, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–4113 Filed 2–19–97; 8:45 am]

BILLING CODE 3410–02–P

7 CFR Part 966

[Docket No. FV96–966–2 FIR]

Tomatoes Grown in Florida; Partial

Exemption From the Handling

Regulation for Single Layer and Two

Layer Place Packed Tomatoes

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting as

a final rule, without change, the

provisions of an interim final rule

providing an exemption to the pack and

container requirements currently

prescribed under the Florida tomato

marketing order. The marketing order

regulates the handling of tomatoes

grown in Florida and is administered

locally by the Florida Tomato

Committee (Committee). This rule

exempts shipments of single layer and

two layer place packed tomatoes from

the container net weight requirements

under the marketing order. This rule

facilitates the movement of single layer

and two layer place packed tomatoes

and should improve returns to

producers of Florida tomatoes.

EFFECTIVE DATE: March 24, 1997.

FOR FURTHER INFORMATION CONTACT:

Aleck Jonas, Marketing Specialist,

Southeast Marketing Field Office, Fruit

and Vegetable Division, AMS, USDA,

P.O. Box 2276, Winter Haven, Florida

33883–2276; telephone: (941) 299–4770,

or FAX: (941) 299–5169; or Mark

Slupek, Marketing Order

Administration Branch, F&V, AMS,

USDA, room 2525–S, P.O. Box 96456,

Washington, DC 20090–6456: telephone:

(202) 205–2830, or FAX: (202) 720–

5698. Small businesses may request

information on compliance with this

regulation by contacting: Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, room

2523–S, Washington, DC 20090–6456;

telephone (202) 720–2491; Fax # (202)

720–5698.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 125 and Order No. 966 (7 CFR part

966), both as amended, regulating the

handling of tomatoes grown in Florida,

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 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 the Secretary 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 the Secretary 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 the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after date of the entry

of the ruling.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)