Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Rules and Regulations 21741 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 922 

[Doc. No. AMS–SC–21–0066; SC21–922–1 

FR] 

Washington Apricots; Suspension of 

Reporting and Assessment 

Requirements 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule suspends the 

reporting and assessment requirements 

prescribed under the marketing order 

regulating apricots grown in designated 

counties in Washington (Marketing 

Order No. 922). In a separate meeting, 

the State of Washington Apricot 

Marketing Committee also unanimously 

recommended terminating Marketing 

Order No. 922. This rule indefinitely 

suspends the assessment and associated 

reporting requirements of the marketing 

order during the period that the AMS is 

processing the termination request. 

DATES: Effective May 13, 2022, § 922.235 

is stayed indefinitely. 

FOR FURTHER INFORMATION CONTACT: 

Joshua R. Wilde, Marketing Specialist, 

or Gary Olson, Regional Director, 

Western Region Branch, Market 

Development Division, Specialty Crops 

Program, AMS, USDA; Telephone: (503) 

326–2724 or Email: Joshua.R.Wilde@

usda.gov or GaryD.Olson@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Market Development Division, Specialty 

Crops Program, AMS, USDA, 1400 

Independence Avenue SW, STOP 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491 or Email: 

Richard.Lower@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

proposes an amendment to regulations 

issued to carry out a marketing order as 

defined in 7 CFR 900.2(j). This final rule 

is issued under Marketing Order No. 

922, as amended (7 CFR part 922), 

regulating the handling of apricots 

grown in designated counties in 

Washington. Part 922 (referred to as 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 

State of Washington Apricot Marketing 

Committee (Committee) locally 

administers the Order and is comprised 

of producers and handlers operating 

within the production area. 

The Department of Agriculture 

(USDA) is issuing this final rule in 

conformance with Executive Orders 

12866 and 13563. Executive Orders 

12866 and 13563 direct agencies to 

assess all costs and benefits of available 

regulatory alternatives and, if regulation 

is necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. This action falls 

within a category of regulatory actions 

that the Office of Management and 

Budget (OMB) exempted from Executive 

Order 12866 review. 

In addition, this final rule has been 

reviewed under Executive Order 

13175—Consultation and Coordination 

with Indian Tribal Governments, which 

requires agencies to consider whether 

their rulemaking actions would have 

tribal implications. USDA has 

determined this final rule is unlikely to 

have substantial direct effects on one or 

more Indian tribes, on the relationship 

between the Federal Government and 

Indian tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian tribes. 

This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This final rule is not 

intended to have retroactive effect. 

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 a marketing order 

may file with USDA a petition stating 

that the marketing order, any provision 

of the marketing order, or any obligation 

imposed in connection with the 

marketing order is not in accordance 

with law and request a modification of 

the marketing 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. 

The Committee meets regularly to 

consider recommendations for 

modification, suspension, or 

termination of the Order’s regulatory 

requirements. Committee meetings are 

open to the public and interested 

persons may express their views at these 

meetings. Agricultural Marketing 

Service (AMS) reviews Committee 

recommendations, including 

information provided by the Committee 

and from other available sources, and 

determines whether modification, 

suspension, or termination would tend 

to effectuate the declared policy of the 

Act. 

On May 11, 2021, the Committee met 

and deliberated over the continuance of 

the Order. Following this meeting, the 

Committee unanimously recommended 

that AMS terminate the Order and 

suspend the collection of assessments. 

This final rule indefinitely suspends 

handler assessments as well as any 

remaining reporting requirements of the 

Order while AMS is processing the 

termination. The termination will be 

conducted in a separate rulemaking 

action. 

Section 922.41 provides authority for 

the Committee to assess handlers for 

their pro rata share of the Committee 

expenses authorized each fiscal period. 

Section 922.60 authorizes the 

Committee to collect reports and other 

information necessary for the 

Committee to perform its duties under 

the Order. This final rule suspends 

§ 922.235, which established a 

continuing assessment rate of $2.86 per 

ton, effective for the 2019–2020 and 

subsequent fiscal periods. Any reports 

that are currently being collected are no 

longer required. 

The Order has been in effect since 

1957 and has provided the apricot 

industry in Washington with authority 

for grade, size, quality, maturity, pack, 

and container regulations, as well as 

authority for mandatory product 

inspection. 

Handling regulations requiring 

apricots to be inspected and meet 

mandatory pack and container 

requirements were in effect until 2007 

and minimum grade, size, maturity, and 

quality requirements until 2014. 

Following a recommendation from the 

Committee, AMS suspended the 

container regulations for apricots for 

one-year, effective April 6, 2006 (71 FR 

16982), and subsequently extended that 

suspension indefinitely effective August 

1, 2007 (72 FR 16265). The Committee 

believed that with changing market 

dynamics container regulations were no 

longer necessary to ensure orderly 

marketing and that suspension would 

provide greater flexibility to handlers 

for packing and shipping apricots. 

In 2013, based on the Committee’s 

recommendation, AMS issued an 

interim rule suspending the handling 

regulations for apricots effective October 

24, 2013 (78 FR 62936). A final rule 


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21742 Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Rules and Regulations 

affirming the indefinite suspension 

published in the Federal Register March 

20, 2014 (79 FR 15539). Again, the 

Committee believed the cost of 

complying with the Order’s handling 

and inspection requirements 

outweighed the benefits to both 

producers and handlers of apricots. 

Both actions were unanimously 

recommended by the Committee. 

Following these regulatory 

suspensions, the Committee continued 

to levy assessments to maintain its 

functionality. The Committee believed 

that it should continue to fund its full 

operational capability, collect industry 

statistics on an ongoing basis, and 

maintain the program in the event 

market conditions warranted regulation. 

The Committee met on May 11, 2021, 

to discuss market dynamics and the 

Committee’s budget and assessments. A 

significant decrease in the 2020–2021 

crop production and increased 

Committee expenses would require the 

Committee to increase the assessment 

rate by 365 percent, from $2.86 to 

$13.30 per ton, to maintain its 

functionality. During those discussions, 

the Committee determined that the 

suspension of handling and container 

requirements had not adversely affected 

the marketing of Washington apricots 

rendering the Order no longer necessary 

to the industry. The Committee 

concluded that termination of the Order 

would have no adverse effect on 

industry. In preparing to terminate the 

Order, the Committee recommended a 

budget of expenditures of $5,508 for the 

period beginning April 1, 2021, and 

ending with the termination. 

Following the May 11, 2021, meeting, 

the Committee conducted a vote among 

all its members to terminate the Order. 

Termination of the Order was 

unanimously supported by the 

Committee. This final rule indefinitely 

suspends the handler assessments and 

any reports being collected, in 

preparation for the termination of the 

Order. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), AMS has considered 

the economic impact of this final rule 

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 

businesses subject to such actions so 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act are unique in that they are brought 

about through group action of 

essentially small entities acting on their 

own behalf. 

There are approximately 315 growers 

of Washington apricots and 

approximately 8 apricot handlers in the 

production area subject to regulation 

under the Order. Small agricultural 

service firms are defined by the Small 

Business Administration (SBA) as those 

having annual receipts of less than 

$30,000,000, and small agricultural 

producers are defined as those having 

annual receipts of less than $1,000,000 

(13 CFR 121.201). 

Based on USDA’s National 

Agricultural Statistics Service (NASS) 

data, and given the number of 

Washington apricot growers, average 

grower revenue is below $1,000,000. 

NASS’s 2020 Washington apricot price 

per ton of $2,040 yields annual grower 

estimated revenue of $3,321,120 which 

equals approximately $10,543 average 

annual receipts per grower ($2,040 price 

per ton multiplied by 1,628 tons divided 

by 315 growers). Thus, most 

Washington apricot growers would be 

considered small businesses under the 

SBA definition. 

In addition, according to data from 

USDA’s Market News Service, an 

estimated Washington apricot 2020 

season average Free on Board (f.o.b.) 

shipper (handler) price per carton was 

approximately $31.59 (for Washington 

apricots, 2-layer tray pack carton, all 

sizes, June–July 2020, midpoint of the 

‘‘mostly low’’ and ‘‘mostly high’’ 

prices). With a standard Market News 

weight of 18 pounds per tray pack 

carton of apricots, the f.o.b. price is 

approximately $1.755 per pound, or 

$3,510 per ton ($31.59 divided by 18 

pounds). The Committee reported that 

the industry shipped 1,628 tons for the 

2020 season. Total 2020 estimated 

handler receipts are $5.714 million 

(1,628 tons times $3,510 per ton). 

Average annual receipts per handler are 

approximately $714,000 ($5.714 million 

divided by 8 handlers). Thus, most 

Washington apricot handlers would be 

considered small businesses under the 

SBA definition. 

This final rule suspends the 

assessment requirements of the Order 

and any reports currently being 

collected. The assessment rate that 

suspended is the $2.86 per ton rate in 

effect for the 2019–2020 fiscal period 

and continuing to the present day. The 

Committee also recommended a budget 

of expenditures of $5,508 for the period 

beginning April 1, 2021, and ending 

with the termination of the Order. The 

budget was based on the Committee’s 

estimated financial resources on March 

31, 2021. Budgeted expenditures 

include administrative expenses and 

any expenses necessary to finalize the 

termination of the Order. 

On July 7, 2021, the Committee made 

the recommendation to suspend the 

remaining reporting and handler 

assessments as an adjunct to the 

recommendation to terminate the Order. 

As such, the alternative discussed by 

the Committee was to maintain the 

status quo and continue to collect 

handler assessments. The Committee 

determined that the decrease in the 

2020–2021 crop production and the 

increases in Committee expenses would 

require the Committee to increase the 

assessment rate by 365 percent, from 

$2.86 to $13.30 per ton. Further, the 

2020–2021 crop production was the 

smallest crop on record, and evidence 

suggests that this decline is a 

continuation of an industry trend. 

In addition, the suspension of the 

handling and packing regulations has 

not adversely affected the marketing of 

Washington apricots. Evidence from the 

past 7 years showed that apricots can be 

marketed from the production area in 

the absence of the Order’s requirements 

without a negative economic impact on 

the industry. 

After considering the alternative, the 

Committee concluded that the cost to 

maintain the Order outweighed its 

benefit to producers and handlers and, 

therefore, unanimously voted to 

suspend the reporting requirements and 

collection of assessments beginning 

with 2021 fiscal period, and to 

terminate the Order. 

This action suspends the reporting 

and assessment obligations imposed on 

handlers. When in effect, assessments 

are applied uniformly on all handlers, 

and some of those costs may be passed 

on to producers. The suspension of the 

reporting and assessment requirements 

reduces the regulatory burden on 

handlers and would be expected to 

reduce the burden on producers. 

In accordance with the Paperwork 

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

Chapter 35), the Order’s information 

collection requirements have been 

previously approved by OMB and 

assigned OMB No. 0581–0189 Fruit 

Crops. This final rule suspends those 

information collection requirements, 

and any reporting requirements under 

the Order. 

This final rule does not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

apricot handlers. 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, AMS has 

not identified any relevant Federal rules 


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Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Rules and Regulations 21743 

that duplicate, overlap or conflict with 

this final rule. 

USDA 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 meetings were 

widely publicized throughout the 

Washington apricot industry, and all 

interested persons are invited to attend 

the meetings and participate in 

Committee deliberations on all issues. 

Meetings are held virtually or in a 

hybrid style with participants having a 

choice whether to attend in person or 

virtually. 

A proposed rule concerning this 

action was published in the Federal 

Register on November 23, 2021 (86 FR 

66462). Copies of the proposal were 

provided by the Committee to members 

and handlers. Finally, the proposed rule 

was made available through the internet 

by AMS and the Office of the Federal 

Register. A 60-day comment period 

ending January 24, 2022, was provided 

to allow interested persons to respond 

to the proposal. During the comment 

period, one comment was received in 

response to the proposal. The comment 

received did not address the merits of 

this rule. Accordingly, no changes have 

been made to the rule as proposed. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: https://

www.ams.usda.gov/rules-regulations/ 

moa/small-businesses. Any questions 

about the compliance guide should be 

sent to Richard Lower at the previously 

mentioned address in the FOR FURTHER

INFORMATION CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the Committee and other 

available information, AMS finds that 

this rule will tend to effectuate the 

declared policy of the Act. 

List of Subjects in 7 CFR Part 922 

Apricots, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service amends 7 CFR part 922 as 

follows: 

PART 922—APRICOTS GROWN IN 

DESIGNATED COUNTIES IN 

WASHINGTON 

■ 1. The authority citation for 7 CFR 

part 922 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

§ 922.235 [Stayed] 

■ 2. Section 922.235 is stayed 

indefinitely. 

Melissa Bailey, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2022–07830 Filed 4–12–22; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9959] 

RIN 1545–BP70 

Guidance Related to the Foreign Tax 

Credit; Clarification of Foreign-Derived 

Intangible Income 

Correction 

In Rule document 2021–27887, 

appearing on pages 276–376, in the 

issue of Tuesday, January 4, 2022, make 

the following corrections: 

§ 1.861–20 [Corrected] 

■ 1. On page 327, in the first column, in 

amendatory instruction Par. 22, the 

table is corrected to read as set forth 

below: 

Old paragraph New paragraph 

(b)(17) ....................... (b)(18) 

(b)(18) ....................... (b)(19) 

(b)(19) ....................... (b)(20) 

(b)(20) ....................... (b)(21) 

(b)(21) ....................... (b)(23) 

(b)(22) ....................... (b)(24) 

(b)(23) ....................... (b)(25) 

(b)(24) ....................... (b)(26) 

§ 1.905–3 [Corrected] 

■ 2. On page 373, in the first column, 

amendatory instruction Par. 29, is 

corrected to read as set forth below: 

■ Par. 29. Section 1.905–3 is amended: 

■ 1. In paragraph (a), by revising the 

first two sentences. 

■ 2. In paragraph (b)(1)(ii)(B)(1), by 

removing the language ‘‘USC Effective’’ 

and adding the language ‘‘USC. 

Effective’’ in its place. 

■ 3. By adding paragraph (b)(4). 

■ 4. By revising paragraph (d). 

[FR Doc. C1–2021–27887 Filed 4–8–22; 8:45 am] 

BILLING CODE 0099–10–D 

DEPARTMENT OF THE INTERIOR 

Office of Natural Resources Revenue 

30 CFR Parts 1210, 1218, and 1243 

[Docket No. ONRR–2011–0023; DS63644000 

DRT000000.CH7000 223D1113RT] 

RIN 1012–AA28 

Mailing and Email Address 

Amendments 

AGENCY: Office of Natural Resources 

Revenue (‘‘ONRR’’), Interior. 

ACTION: Final rule. 

SUMMARY: ONRR is publishing this final 

rule to update room number, mailstop, 

and other information for filing certain 

forms by mail, courier, or overnight 

delivery. It also provides email 

addresses for filing certain forms 

electronically. 

DATES: This rule is effective May 13, 

2022. 

FOR FURTHER INFORMATION CONTACT: For 

questions on procedural and technical 

issues, contact Ginger J. Hensley, 

Regulatory Specialist, by telephone at 

(303) 231–3171 or email at ONRR_

RegulationsMailbox@onrr.gov. 

SUPPLEMENTARY INFORMATION: 

I. Explanation of Amendments 

II. Procedural Matters 

I. Explanation of Amendments 

ONRR regulations at 30 CFR parts 

1210, 1218, and 1243 authorize various 

forms to be filed with ONRR related to 

Federal and Indian royalty reporting 

and payment and appeal bonding by 

mail, courier, or overnight delivery. As 

further described in the amendatory 

instructions, this final rule amends 

these parts to update room number, 

mailstop, or other information for these 

delivery methods. 

Title 30 CFR 1210.151 authorizes 

form ONRR–4393, Request to Exceed 

Regulatory Allowance Limitation, to be 

filed with ONRR by mail, courier, 

overnight delivery, or email, but it does 

not provide an email address for doing 

so. This final rule amends this section 

to specify royaltyvaluation@onrr.gov as 

the email address for filing form ONRR– 

4393 with ONRR by email. 

Title 30 CFR 1210.151, 1210.152, and 

1210.153 authorize various forms to be 

filed with ONRR related to royalty 

reporting for Indian leases by mail, 

courier, or overnight delivery. This final 

rule amends these sections to also 

authorize the filing of these forms with 

ONRR electronically by email to 

onrrindianforms@onrr.gov. 

This is a final rulemaking with no 

request for public comment. This 


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