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

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REGISTER issue of each week.

Rules and Regulations Federal Register

29459

Vol. 61, No. 113

Tuesday, June 11, 1996

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Docket No. FV96–985–1FIR]

Spearmint Oil Produced in the Far

West; Revision of the Salable Quantity

and Allotment Percentages for Class 1

(Scotch) Spearmint Oil the 1995–96

Marketing Year

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

increasing the quantity of Class 1

(Scotch) spearmint oil produced in the

Far West, that handlers may purchase

from, or handle for, producers during

the 1995–96 marketing year. This rule

was recommended by the Spearmint Oil

Administrative Committee (Committee),

the agency responsible for local

administration of the marketing order

for spearmint oil produced in the Far

West. The Committee recommended

this rule for the purpose of avoiding

extreme fluctuations in supplies and

prices and thus help to maintain

stability in the spearmint oil market.

EFFECTIVE DATE: July 11, 1996.

FOR FURTHER INFORMATION CONTACT:

Robert J. Curry, Northwest Marketing

Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, 1220

SW Third Avenue, room 369, Portland,

Oregon 97204–2807; telephone: (503)

326–2724; or Caroline C. Thorpe,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, room 2525, South

Building, P.O. Box 96456, Washington,

D.C. 20090–6456; telephone: (202) 720–

8139; Tershirra Yeager, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, Room

2525, South Building, P.O. Box 96456,

Washington, D.C. 20090–6456;

telephone: (202) 690–0992.

SUPPLEMENTARY INFORMATION: This final

rule is issued under Marketing Order

No. 985 (7 CFR Part 985), regulating the

handling of spearmint oil produced in

the Far West (Washington, Idaho,

Oregon, and designated parts of

California, Nevada, Montana, and Utah),

hereinafter referred to as the ‘‘order.’’

This 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 final rule has been reviewed

under Executive Order 12778, Civil

Justice Reform. Under the provisions of

the marketing order now in effect,

salable quantities and allotment

percentages may be established for

classes of spearmint oil produced in the

Far West. This final rule increases the

quantity of Scotch spearmint oil

produced in the Far West, by class, that

may be purchased from or handled for

producers by handlers during the 1995–

96 marketing year, which ends on May

31, 1996. This final 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 in

equity 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)

has considered the economic impact of

this rule on small entities.

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.

There are eight spearmint oil handlers

who are subject to regulation under the

respective marketing order and

approximately 260 producers of

spearmint oil in the regulated

production area. Of the 260 producers,

approximately 160 producers hold Class

1 (Scotch) spearmint oil allotment base,

and approximately 145 producers hold

Class 3 (Native) spearmint oil allotment

base. Small agricultural service firms

have been 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. A minority of handlers

and producers of Far West spearmint oil

may be classified as small entities.

The Far West spearmint oil industry

is characterized by producers whose

farming operations generally involve

more than one commodity and whose

income from farming operations are not

exclusively dependent on the

production of spearmint oil. The U.S.

production of spearmint oil is

concentrated in the Far West, primarily

Washington, Idaho, and Oregon (part of

the area covered by the order).

Spearmint oil is also produced in the

Midwest. The production area covered

by the order normally accounts for

approximately 75 percent of the annual

U.S. production of spearmint oil.

This rule finalizes an interim final

rule that increased the quantity of

Scotch spearmint oil that handlers may

purchase from, or handle for, producers

during the 1995–96 marketing year,

which ends on May 31, 1996. This rule

increases the salable quantity from

908,531 pounds to 997,317 pounds and

the allotment percentage from 51
29460 Federal Register / Vol. 61, No. 113 / Tuesday, June 11, 1996 / Rules and Regulations

percent to 56 percent for Scotch

spearmint oil for the 1995–96 marketing

year.

The salable quantity is the total

quantity of each class of oil that

handlers may purchase from, or handle

for, producers during a marketing year.

The salable quantity calculated by the

Committee is based on the estimated

trade demand. The total salable quantity

is divided by the total industry

allotment base to determine an

allotment percentage. Each producer is

allotted a share of the salable quantity

by applying the allotment base for the

applicable class of spearmint oil.

The initial salable quantity and

allotment percentages for Scotch and

Native percentages for the 1995–96

marketing year were recommended by

the Committee at its October 5, 1994,

meeting. The Committee recommended

salable quantities of 908,531 pounds

and 906,449 pounds, and allotment

percentages of 51 percent and 46

percent, respectively, for Scotch and

Native spearmint oils. A proposed rule

was published in the December 15,

1994, issue of the Federal Register (59

FR 64625). Comments on the proposed

rule were solicited from interested

persons until January 17, 1995. No

comments were received. Accordingly,

based upon analysis of available

information, a final rule establishing the

Committee’s recommendation as the

salable quantities and allotment

percentage for Scotch and Native

spearmint oils for the 1995–96

marketing year was published in the

February 15, 1995, issue of the Federal

Register (60 FR 8524). The Committee

met again on February 22, 1995, to

recommend an increase in the salable

quantity and allotment percentage for

Native spearmint oil. An interim final

rule increasing the salable quantity and

allotment percentage for Native

spearmint oil by 98,527 and 5 percent,

respectively, was published in the

Federal Register on April 14, 1995 (60

FR 18950). Comments were solicited on

the interim final rule until May 15,

1995. No comments were received.

Accordingly, based upon analysis of

available information, a final rule

establishing as the salable quantity and

allotment percentage for Native

spearmint oil for the 1995–96 marketing

year was published in the June 12, 1995,

issue of the Federal Register (60 FR

30785).

Pursuant to authority contained in

§§ 985.50, 985.51, and 985.52 of the

order, February 27, 1996, meeting, the

Committee unanimously recommended,

that allotment percentage for Scotch

spearmint oil for the 1995–96 marketing

year be increased by 5 percent from 51

percent to 56 percent. The 1995–96

marketing year salable quantity of

908,531 pounds would therefore be

increased by 89,046 pounds to 997,317

pounds.

However, some Scotch spearmint oil

producers did not produce all of their

individual salable quantities for the

1995–96 marketing year, or fill their

deficiencies from the prior year’s

production. The marketing order

authorizes such producers to have their

deficiencies filled by other producers

who have production in excess of their

salable quantities. This is optional for

producers, but must be done before

November 1 of each marketing year.

Although the Scotch spearmint oil

salable quantity for 1995–96 was

established at 908,531 pounds, only

887,093 pounds were actually made

available. Unfilled deficiencies totaled

21,178 pounds.

In addition, for the Scotch spearmint

oil the total industry allotment base of

1,781,433 pounds was revised to

1,780,923 pounds to reflect loss of base

due to non-production of their total

annual allotments. This adjustment

resulted in a 510 pound loss of total

industry base, which is reflected in the

calculations for the revised salable

quantity.

This final rule continues to permit an

additional amount of Scotch spearmint

oil available by increasing the salable

quantity which releases oil from the

reserve pool. Only producers with

Scotch spearmint oil in the reserve pool

will be able to use this increase in the

salable quantity. Prior to November 1,

1995, producers without reserve pool oil

or producers with an insufficient supply

of reserve oil could have deficiencies in

meeting their salable quantities filled by

producers having excess Scotch

spearmint oil. If all producers could use

their salable quantity, this 5 percent

increase in the allotment percentage

would have made an additional 89,046

pounds of Scotch spearmint oil

available. However, Scotch spearmint

oil producers having 21,260 pounds of

Scotch spearmint oil will not be able to

use their reserve pool deficiencies this

marketing year. Thus, rather than 89,046

additional pounds being made available,

this action makes 67,786 additional

pounds of Scotch spearmint oil

available to the market.

The following table summarizes the

Committee recommendation:

Scotch Spearmint Oil Recommendation

(a) Actual Carry In on June 1, 1995:

150,637 pounds

(b) 1995–96 Salable Quantity: 908,531

pounds

(c) 1995–96 Available Supply: 1,059,168

pounds (a+b)

(d) Total Sales as of February 27, 1996:

883,959 pounds

(e) Calculated Available Supply as of

February 27, 1996: 175,209 pounds

(c¥d)

(f) Unfilled Deficiencies in producers’

salable quantities prior to

November 1, 1995: 21,178 pounds

(g) Unusable salable quantities due to

producers not having reserve pool

oil: 21,260 pounds

(h) Total Deficiency Affecting Salable

Quantity: 42,438 pounds (f+g)

(i) Actual Available Supply (2/27/96):

153,771 pounds (e¥f)

(j) Revised Total Allotment Base:

1,780,923 pounds

(k) Recommended Allotment Percentage

(2/27/96): 56 percent

(l) Calculated Revised Salable Quantity:

997,317 pounds (j×k)

(m) Actual Oil Available as Salable

Quantity: 954,879 pounds (l¥h)

In making this latest recommendation,

the Committee considered all available

information on supply and demand. The

1996–97 marketing year begins on June

1, 1996. Handlers have indicated that

with this action, the available supply of

both Scotch and Native spearmint oils

appears adequate to meet anticipated

demand through May 31, 1996.

However, with increases in Scotch

spearmint oil production elsewhere over

the past two years, the Committee has

embarked on a strategy of maintaining

an abundance of Scotch spearmint oil

available for market in an attempt to

regain lost market share. With 153,771

pounds of Scotch spearmint oil

available as of February 27, 1996, the

Committee, believes that the increase

would ensure that ample supplies of

Scotch spearmint oil are available

throughout the remainder of the current

marketing year. When the Committee

made its initial recommendation for the

establishment of the Scotch spearmint

oil salable quantity and allotment

percentage for the 1995–96 marketing

year, it had anticipated that the year

would end with an ample available

supply. An interim final rule was

published in the Federal Register [61

FR 15697]. Comments on the interim

final rule were solicited from interested

persons until May 9, 1996. No

comments were received. With this

latest revision, 221,557 pounds of

Scotch spearmint oil is made available.

The Scotch spearmint oil is made

available for market during the

remainder of the 1995–96 marketing

year.

The Department, based on its analysis

of available information, has determined
Federal Register / Vol. 61, No. 113 / Tuesday, June 11, 1996 / Rules and Regulations 29461

that an allotment percentage of 56

percent should be established for Scotch

spearmint oil for the 1995–96 marketing

year. This percentage will provide an

increased calculated salable quantity of

997,317 pounds, the actual additional

amount of Scotch spearmint oil being

made available by this final rule is

67,786 pounds. This results in an actual

salable quantity of 954,879 pounds of

Scotch spearmint oil.

Therefore, based on available

information, AMS has determined that

the issuance of this final rule will not

have a significant economic impact on

a substantial number of small entities.

After consideration of all relevant

matter presented, including that

contained in the prior proposed and

final rules in connection with the

establishment of the salable quantity

and allotment percentage for Scotch and

Native spearmint oils for the 1995–96

marketing year, the Committee’s

recommendation and other available

information, it is found that to revise

section 985.214 (60 FR 8524) to change

the salable quantity and allotment

percentage for Scotch spearmint oil, as

hereinafter set forth, will tend to

effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 985

Marketing agreements, Oils and fats,

Reporting and recordkeeping

requirements, Spearmint oil.

For the reasons set forth in the

preamble, 7 CFR part 985 is amended as

follows:

PART 985—SPEARMINT OIL

PRODUCED IN THE FAR WEST

Accordingly, the interim final rule

amending 7 CFR part 985 which was

published at 61 FR 15695 on April 9,

1996, is adopted as a final rule without

change.

Dated: June 3, 1996.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 96–14755 Filed 6–10–96; 8:45 am]

BILLING CODE 3410–02–P

7 CFR Part 1240

[AMS–FV–96–701.FR]

Honey Research, Promotion, and

Consumer Information Order—

Amendment of the Rules and

Regulations To Add HTS Code for

Flavored Honey

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This rule adds a new

Harmonized Tariff Schedule (HTS) code

number for imported flavored honey to

the rules and regulations issued under

the Honey Research, Promotion, and

Consumer Information Order to provide

authority for the U.S. Customs Service

to collect an assessment on all imported,

flavored honey.

EFFECTIVE DATE: July 12, 1996.

FOR FURTHER INFORMATION CONTACT:

Richard B. Schultz, Research and

Promotion Branch, Fruit and Vegetable

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

Room 2535-So., Washington, D.C.

20090–6456; telephone (202) 720–9915.

SUPPLEMENTARY INFORMATION: This rule

is issued under the Honey Research,

Promotion, and Consumer Information

Act, as amended [104 Stat. 3904, 7

U.S.C. 4601 et seq.], hereinafter referred

to as the Act.

This rule has been issued in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12778, Civil Justice

Reform. It 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 10 of the Act, a person subject

to an order may file a petition with the

Secretary stating that such order, any

provision of such order, or any

obligation imposed in connection with

such order is not in accordance with

law; and requesting a modification of

the order or an exemption from the

order. Such person 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

such person is an inhabitant, or has a

principal place of business, has

jurisdiction to review the Secretary’s

ruling on the petition, provided that a

complaint is filed within 20 days after

the date of entry of the ruling.

The Regulatory Flexibility Act (5

U.S.C. 601–612) requires the Agency to

examine the impact of a rule on small

entities. Pursuant to 5 U.S.C. 605(b), the

Agricultural Marketing Service (AMS)

has certified that the issuance of this

final rule will not have a significant

economic effect on a substantial number

of small entities.

The board estimates that 500,000

pounds of flavored honey are imported

annually at a market value of

approximately $325,000 and will result

in an estimated $5,000 in assessments.

This action will not result in a major

price increase or have significant

adverse effects on production or

marketing.

There are an estimated 145 handlers,

510 producer-packers, 8,300 producers,

and 350 importers who are currently

subject to the provisions of the Order.

The majority of these persons may be

classified as small agricultural

producers and small agricultural service

firms. Small agricultural producers are

defined by the Small Business

Administration [13 CFR 121.601] as

those having annual receipts of less than

$500,000, and small service firms are

defined as those having annual receipts

of less than $5 million.

In accordance with the Paperwork

Reduction Act [44 U.S.C. Chapter 35],

and OMB regulations [5 CFR Part 1320],

the information collection and

recordkeeping requirements contained

in this action have been previously

approved under OMB control number

0581–0093.

Background

The Honey Research, Promotion, and

Consumer Information Order (Order)

provides that each producer and

importer shall pay to the Board a one

cent per pound assessment rate on

honey and honey products produced in

or imported into the United States.

Section 1240.5 of the Order defines

honey products as products wherein

honey is a principal ingredient.

In order for the U.S. Customs Service

(Customs) to collect the assessments on

imported honey and honey products,

each product needs to be identified by

an HTS Code. Since the Board

inception, honey has been assessed by

Customs under HTS code number

0409.00.00. However, there were no

HTS codes for honey products.

The Board has identified flavored

honey as a product containing

approximately 99 percent honey. The

Board estimates that 500,000 pounds of

flavored honey are imported into the

United States annually without the

importer paying the required

assessment. Therefore, at the

recommendation of the Board, the

Department requested the Committee for

Statistical Annotation of Tariff

Schedules (Committee) on the

International Trade Commission to

establish an HTS code for flavored

honey. The Committee notified the

Department on February 13, 1996, that

a code has been established for flavored

honey. The purpose of this rule is to add

the new HTS code for flavored honey to

the rules and regulations under the