[Federal Register Volume 63, Number 125 (Tuesday, June 30, 1998)]
[Rules and Regulations]
[Pages 35500-35502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17349]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 29, 31, 32, 36, 51, 52, 53, 54, 56, 58, 70, and 160

[Docket Number FV-95-303]


Removal of U.S. Grade Standards and Other Selected Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture is adopting two interim final 
rules concerning removal of voluntary U.S. grade standards and other 
selected regulations from the Code of Federal Regulations (CFR). This 
action is part of the National Performance Review Program to eliminate 
unnecessary regulations and improve those that remain in force.

EFFECTIVE DATE: July 30, 1998.

FOR FURTHER INFORMATION CONTACT: Eric Forman, Associate Deputy 
Administrator, Fruit and Vegetable Programs, USDA, AMS, Room 2085-S, 
P.O. Box 96456, Washington, D.C. 20090-6456, (202) 690-0262.

SUPPLEMENTARY INFORMATION: An interim final rule was published in the 
Federal Register on December 4, 1995. That rule removed most of the 
voluntary U.S. grade standards and other selected regulations covering 
a number of agricultural commodities (dairy products, tobacco, wool, 
mohair, fresh and processed fruits and vegetables, livestock, meats and 
meat products, eggs, and poultry and rabbit products) from the CFR. A 
second interim final rule was published on August 13, 1997 which: 
removed from the CFR those standards that had been retained pending 
completion of rulemaking at the time an interim final rule was 
published on December 4, 1995 which removed most of the U.S. standards 
from the CFR; reinstated the U.S. standards for Wisconsin Cigar-Binder 
Tobacco, and regulations related to the purchase of samples of wool and 
of mohair grades; and, lastly added a new part titled ``Procedures by 
Which the Agricultural Marketing Service Develops, Revises, Suspends, 
or Terminates Voluntary Official Grade Standards.'' These procedures 
were first discussed in the original interim rule and further developed 
and published in the August 13, 1997 interim final rule providing 
specifics as to the procedures that AMS will follow when developing, 
revising, suspending, or terminating voluntary U.S. grade standards. 
The Department is making final the December 4, 1995, interim final 
rule, and the August 13, 1997, interim final rule. This regulatory 
action is being taken as part of the National Performance Review 
program to eliminate unnecessary regulations and improve those that 
remain in force.

Executive Order 12866

    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have preemptive effect 
with respect to any State or local laws, regulations, or policies 
unless they present an irreconcilable conflict with this rule. This 
rule is not intended to have retroactive effect. There are no 
administrative procedures which must be exhausted prior to any judicial 
challenge to this rule or the application of its provisions.

Effect on Small Entities

    This action was reviewed under the Regulatory Flexibility Act (RFA) 
(5

[[Page 35501]]

U.S.C. 601 et seq.). The Administrator of AMS has determined that this 
action will not have a significant economic impact on a substantial 
number of small entities. The purpose of the RFA is to fit regulatory 
actions to the scale of businesses subject to such actions in order 
that small businesses will not be unduly or disproportionately 
burdened.
    The United States standards issued or revised pursuant to the 
Agricultural Marketing Act, and issued thereunder, are administered 
under the direction of the Administrator of AMS and, as in the past, 
will be based on input from interested parties, including various 
industries which are mostly comprised of small entities as defined by 
the Small Business Administration (13 CFR 121.601). Other users of the 
various standards are government agencies including USDA's Farm 
Services Agency and the Foreign Agricultural Service.
    Removal of voluntary standards and other selected regulations 
covering a number of agricultural commodities from the CFR is expected 
to benefit the affected industries because it will provide for more 
timely improvement in the standards in accordance with the published 
procedures. Notice of any actions as to the development, revision, 
suspension or termination of U.S. standards will be published in the 
Federal Register with request for comment to ensure that all interested 
parties, including small businesses as well as the general public, have 
an opportunity to have their views considered regarding any actions 
taken concerning the U.S. grade standards. This rule will specify a new 
CFR part titled ``Procedures by Which the Agricultural Marketing 
Service Develops, Revises, Suspends, or Terminates Voluntary Official 
Grade Standards.'' These procedures reflect the steps that were 
discussed in the original interim final rule concerning the procedures 
that AMS will follow when developing, revising, suspending, or 
terminating U.S. grade standards.

Paperwork Reduction Act

    In accordance with the provisions of the Paperwork Reduction Act, 
the information collection requirements contained in the provisions 
have been previously approved by the Office of Management and Budget.

Background

    The Secretary of Agriculture is authorized under various statutes 
to provide various services to provide Federal grading/certification 
services and to develop and establish efficient marketing methods and 
practices of agricultural commodities. For more than 75 years, AMS has 
facilitated the marketing of agricultural commodities by developing 
official U.S. grade standards which provide a uniform language that may 
be used to describe the characteristics of more than 450 commodities as 
valued by the marketplace. These standards are widely used in private 
contracts, government procurement, marketing communication and, for 
some commodities, consumer information.
    Although use of the U.S. standards is usually voluntary, they have 
through the years been promulgated as regulations and codified in the 
CFR. Rapid changes in consumer preferences, together with associated 
changes in commodity characteristics, processing technology, and 
marketing practices have often out paced the revision of existing or, 
the issuance of new regulations. As a result, the marketplace has been 
in some instances burdened with outdated trading language. The 
President's regulatory review initiative provided the impetus to 
develop new approaches to meet more effectively the needs of U.S. 
industry, government agencies, and consumers by reducing the regulatory 
burden. As part of this initiative, AMS determined that certain 
regulations that were in the CFR which could be administered under the 
authority of AMS should be removed from the CFR.
    With this objective, on December 4, 1995, AMS published an interim 
final rule with a request for comments that removed most of the 
voluntary U.S. standards and related regulations from the CFR. That 
action included all of the standards except those that at the time were 
in rulemaking, incorporated by reference in marketing orders/agreements 
appearing at 7 CFR Parts 900 through 999, or those used to implement 
government price supports. Those grade standard regulations have 
remained in the CFR, even though the text will also be available as AMS 
standards along with all other grade standards.
    On March 11, 1996, in response to requests by representatives of 
the dairy and meat industries, USDA published a notice in the Federal 
Register that it would reopen and extend the comment period until July 
10, 1996. The industry association comments asked for more time to 
evaluate how the changes AMS was initiating would impact their 
respective industries.
    Twenty one comments were received from interested persons in 
connection with the interim final rule. Those commenting included 
representatives of trade associations, a food processor, a state 
department of agriculture and other interested persons. The majority of 
comments were commodity specific and were addressed on an AMS program 
basis with regard to the appropriate commodity topic.
    One comment expressed its concern about the process AMS would 
follow with regard to drafting new or revising existing standards and 
wanted assurance that AMS would continue to solicit input from industry 
when developing and revising U.S. grade standards.
    Taking into account the various comments received in response to 
the request for comment on the December 4, 1995 interim final rule, AMS 
prepared a second interim final rule which was published in the Federal 
Register on August 13, 1997. That rule addressed by Program and 
commodity the specific concerns or comments from industry.
    One comment was received in response to the August 13, 1997, 
interim final rule. The American Meat Institute stated that their ``* * 
* initial reservations to the December 1995 version of the rule 
regarding the ability of industry to fully participate in the 
development of future changes to grade standards appear to have been 
resolved. * * * '' The August 13, 1997, interim final rule codified in 
Part 36 of 7 CFR procedures that AMS will follow when developing, 
revising, suspending, or terminating U.S. grade standards.
    Further, during the period of time since the comment period ended, 
AMS has had an opportunity to revise several grade standards using the 
procedures that were established under Part 36. At this time AMS is 
confident that the procedures effectively provide for public input.
    This action will make final those regulations. As has been 
longstanding practice, the standards for the various commodities will 
be administered by the respective commodity programs within AMS. Also, 
AMS has had time to evaluate the effectiveness of procedures that were 
published in Part 36 and believes that they are serving their intended 
purposes. Accordingly, it is appropriate that the provisions of the 
December 4, 1995, interim final rule, and the August 13, 1997, interim 
final rule be made final, without change.

List of Subjects

7 CFR Part 29

    Administrative practice and procedure, Advisory committees, 
Government publications, Imports, Pesticides and pests, Reporting and 
recordkeeping requirements, Tobacco.

7 CFR Part 31

    Wool.

[[Page 35502]]

7 CFR Part 32

    Mohair.

7 CFR Part 36

    Administrative practice and procedure, Agricultural commodities, 
Food grades and standards, Reporting and recordkeeping requirements.

7 CFR Part 51

    Agricultural commodities, Food grades and standards, Fruits, Nuts, 
Reporting and recordkeeping requirements, Trees, Vegetables.

7 CFR Part 52

    Food grades and standards, Food labeling, Frozen foods, Fruit 
juices, Fruits, Reporting and recordkeeping requirements, Vegetables.

7 CFR Part 53

    Cattle, Hogs, Livestock, Sheep.

7 CFR Part 54

    Food grades and standards, Food labeling, Meat and meat products.

7 CFR Part 56

    Eggs and egg products, Food grades and standards, Food labeling, 
Reporting and recordkeeping requirements.

7 CFR Part 58

    Dairy products, Food grades and standards, Food labeling, Reporting 
and recordkeeping requirements.

7 CFR Part 70

    Food grades and standards, Food labeling, Poultry and poultry 
products, Rabbits and rabbit products, Reporting and recordkeeping 
requirements.

7 CFR Part 160

    Administrative practice and procedure, Advertising, Forests and 
forest products, Labeling, Packaging and containers, Reporting and 
recordkeeping requirements.

PART 29--TOBACCO INSPECTION

PART 31--WOOL STANDARDS

PART 32--MOHAIR STANDARDS

PART 36--PROCEDURES BY WHICH THE AGRICULTURAL MARKETING SERVICE 
DEVELOPS, REVISES, SUSPENDS, OR TERMINATES VOLUNTARY OFFICIAL GRADE 
STANDARDS

PART 51--FRESH FRUITS, VEGETABLES AND OTHER PRODUCTS <SUP>1</SUP> 
<SUP>2</SUP> (INSPECTION, CERTIFICATION, AND STANDARDS)

PART 52--PROCESSED FRUITS AND VEGETABLES, PROCESSED PRODUCTS 
THEREOF, AND CERTAIN OTHER PROCESSED FOOD PRODUCTS <SUP>3</SUP>

PART 53--LIVESTOCK (GRADING, CERTIFICATION, AND STANDARDS)

PART 54--MEATS, PREPARED MEATS, AND MEAT PRODUCTS (GRADING, 
CERTIFICATION, AND STANDARDS)

PART 56--GRADING OF SHELL EGGS AND U.S. STANDARDS, GRADES, AND 
WEIGHT CLASSES FOR SHELL EGGS

PART 58--GRADING AND INSPECTION, GENERAL SPECIFICATIONS FOR 
APPROVED PLANTS AND STANDARDS FOR GRADES OF DAIRY PRODUCTS 
<SUP>4</SUP>

PART 70--VOLUNTARY GRADING OF POULTRY PRODUCTS AND RABBIT PRODUCTS 
AND U.S. CLASSES, STANDARDS, AND GRADES

PART 160--REGULATIONS AND STANDARDS FOR NAVAL STORES

    Accordingly the interim final rule amending 7 CFR Parts 29, 31, 32, 
51, 52, 53, 54, 56, 58, 70, and 160, which was published at 60 FR 62172 
on December 4, 1995, and the interim final rule amending 7 CFR Parts 
29, 31, 32, 36, 52, 53, 54, and 58, which was published at 62 FR 43430 
on August 13, 1997, are adopted as final rules, without change.
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    \1\ Among such other products are the following: Raw nuts, 
Christmas trees and evergreens; flowers and flower bulbs; and onion 
sets.
    \2\ None of the requirements in the regulations of this part 
shall excuse failure to comply with any Federal, State, county, or 
municipal laws applicable to products covered in the regulations in 
this part.
    \3\ Among such other processed food products are the following: 
Honey; molasses, except for stockfeed; nuts and nut products, except 
oil; sugar (cane, beet, and maple); sirups (blended), sirups, except 
from grain; tea; cocoa; coffee; spices; condiments.
    \4\ Compliance with these standards does not excuse failure to 
comply with the provisions of the Federal Food, Drug and Cosmetic 
Act.

    Dated: June 24, 1998.
Enrique E. Figueroa,
Administrator, Agricultural Marketing Service.
[FR Doc. 98-17349 Filed 6-29-98; 8:45 am]
BILLING CODE 3410-02-P