[Federal Register Volume 62, Number 34 (Thursday, February 20, 1997)]
[Rules and Regulations]
[Pages 7655-7657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4113]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / 
Rules and Regulations

[[Page 7655]]



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.

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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 3\9/16\ inches in diameter 
(size 48) to 3\5/16\ 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 (3\9/16\ inches diameter) to size 56 (3\5/16\ 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 (3\9/16\ 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

[[Page 7656]]

(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 3\5/16\ 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 (3\9/16\ inches diameter) to size 56 (3\5/16\ inches diameter) for 
the period November 11, 1996, through November 9, 1997. Absent this 
change, the size would have reverted back to size 48 (3\9/16\ 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

[[Page 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 Secs. 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