Source: https://www.federalregister.gov/documents/2007/09/25/E7-18794/raisins-produced-from-grapes-grown-in-california-change-in-requirements-for-interhandler-transfers
Timestamp: 2017-09-26 11:58:58
Document Index: 726954118

Matched Legal Cases: ['§\u2009989', '§\u2009989', '§\u2009989', '§\u2009989', '§\u2009989', '§\u2009989']

Federal Register :: Raisins Produced From Grapes Grown in California; Change in Requirements for Interhandler Transfers of Raisins
Raisins Produced From Grapes Grown in California; Change in Requirements for Interhandler Transfers of Raisins
A Rule by the Agricultural Marketing Service on 09/25/2007
72 FR 54341
54341-54343 (3 pages)
Docket No. AMS-FV-07-0083
FV07-989-3 FIR
E7-18794
https://www.federalregister.gov/d/E7-18794 https://www.federalregister.gov/d/E7-18794
Start Preamble Start Printed Page 54341
The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim final rule changing the requirements for interhandler transfers of raisins under the administrative rules and regulations of the California raisin marketing order (order). The order regulates the handling of raisins produced from grapes grown in California and is administered locally by the Raisin Administrative California (Committee or RAC). This rule continues in effect the action that requires handlers who transfer raisins to other handlers within the State of California to certify to the Committee that only acquired, free-tonnage raisins that meet all applicable order requirements are being transferred to receiving handlers. This action helps maintain the integrity of the order by ensuring that handlers only transfer acquired, free-tonnage raisins that meet applicable order requirements.
Rose M. Aguayo, Marketing Specialist, or Kurt J. Kimmel, Regional Manager, California Marketing Field Office, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, Telephone: (559) 487-5901, Fax: (559) 487-5906, or E-mail: Rose.Aguayo@usda.gov, or Kurt.Kimmel@usda.gov.
This rule continues in effect revisions to the requirements for interhandler transfers of raisins under the administrative rules and regulations of the California raisin order. This rule requires handlers who transfer raisins to other handlers within the State of California to certify to the Committee that only acquired, free-tonnage raisins that meet all applicable order requirements are being transferred.
Pursuant to § 989.17, “acquire means to have or obtain physical possession of raisins by a handler at his packing or processing plant or at any other established receiving station operated by him.” However, handlers are not deemed to acquire raisins if they are being stored for another, being reconditioned, or held for inspection. Also the term only applies to the handler who first obtains possession of the raisins. Free tonnage raisins are those raisins which have been acquired, not placed in the reserve pool, and for which producers receive payment for 100 percent of handler purchases. This change helps maintain the integrity of the order and was unanimously recommended by the Committee at a public meeting on April 12, 2007.
Section 989.59(e) of the order provides authority for handlers who acquire free-tonnage raisins to transfer such raisins to other handlers within the State of California. It also specifies that transferring handlers shall promptly report such transfers to the Committee, unless transfers are between plants owned or operated by the same handler. Further, it specifies that receiving handlers shall comply with all applicable order requirements before shipping or otherwise making final disposition of such raisins.
Section 989.73 of the order provides authority for the RAC to collect reports from handlers and specifies that, upon request by the RAC, with the approval of the Secretary, handlers shall furnish to the RAC other information as may be necessary to enable it to exercise its powers and perform its duties. The RAC meets routinely to make decisions on various programs authorized under the order such as interhandler transfers. The RAC utilizes information collected under the order in its decision making.
Section 989.173 of the order's administrative rules and regulations specifies certain reports that handlers are currently required to submit to the RAC. Under § 989.173(d)(1) of the order's rules and regulations any handler who transfers free-tonnage raisins to another handler within the State of California shall submit a report to the Committee showing information regarding the interhandler transfer not Start Printed Page 54342later than five calendar days following such transfer.
Such information includes the transfer date; the names and addresses of the transferring parties; the varietal type, net weight, and condition of the raisins transferred; and the inspection certificate number, if the raisins have already been packed. Transferring handlers are required to forward two copies of the RAC Form No. 6, “Interhandler Transfers of Free-Tonnage Raisins,” to the receiving handler at the same time the report is submitted to the Committee. The receiving handler is required to certify receiving the raisins and to submit one copy of the certification report to the Committee within five calendar days of receiving the raisins or the copies of RAC Form No. 6, whichever is later.
The Committee is concerned that some handlers may be transferring California raisins which are not acquired or which do not meet all applicable order requirements. Such requirements include proper reporting, inspection, assessments, and volume regulation. To help ensure that handlers only transfer acquired, free-tonnage raisins that meet all applicable order requirements, the Committee unanimously recommended that transferring handlers certify on RAC Form No. 6, “Interhandler Transfer of Free-Tonnage Raisins,” that only acquired, free-tonnage raisins that meet all applicable order requirements are being transferred. The Committee expects that requiring this certification should help maintain the integrity of the order.
This rule continues to modify § 989.173(d)(1) by deleting the word “and” from paragraph (iii); by changing the period to a semi-colon and adding the word “and” at end of paragraph (iv); and by adding a new subparagraph (v), which requires handlers to certify that the raisins being transferred are acquired, free-tonnage raisins that meet all applicable order requirements including proper reporting, incoming inspection, assessments, and volume regulation.
The RAC Form No. 6, “Interhandler Transfer of Free-Tonnage Raisins” has been modified by the addition of the following paragraph: “To Be Completed by Transferring Handler: The undersigned certifies that the raisins being transferred have met all Federal order requirements, including proper reporting, incoming inspection, assessments, and volume regulations, if applicable.” No additional reporting burden is placed upon handlers.
There are approximately 23 handlers of California raisins who are subject to regulation under the order and approximately 4,000 raisin producers in the regulated area. Small agricultural service firms are defined by the Small Business Administration (SBA) (13 CFR 121.201) as those having annual receipts of less than $6,500,000, and small agricultural producers are defined as those having annual receipts of less than $750,000. No more than 10 handlers, and a majority of producers, of California raisins may be classified as small entities. Thirteen of the 23 handlers subject to regulation have annual sales estimated to be at least $6,500,000, and the remaining 10 handlers have sales less than $6,500,000.
This rule continues to revise § 989.173(d)(1) of the order's administrative rules and regulations and requires handlers who transfer raisins to other handlers to certify on RAC Form No. 6, “Interhandler Transfer of Free-Tonnage Raisins,” that only acquired, free-tonnage raisins that meet all applicable order requirements are being transferred. This helps maintain the integrity of the order. Authority for interhandler transfers is provided in § 989.59, and authority to recommend this change is provided in § 989.73 of the order.
Regarding the impact of this action on affected entities, it continues to require handlers who transfer raisins to other handlers to certify on RAC Form No. 6, “Interhandler Transfer of Free-Tonnage Raisins,” that such raisins are acquired, free-tonnage raisins that meet all applicable order requirements.
The Committee considered not requiring handlers to certify that their transferred raisins are acquired free-tonnage raisins and that they meet all applicable order requirements. However, the Committee was concerned that some handlers may be transferring California raisins which are not acquired or which do not meet all applicable order requirements. Such requirements include proper reporting, incoming inspection, assessments, and volume regulation. As receiving handlers want additional assurance that they are receiving raisins which have been acquired and which meet applicable order requirements, the Committee unanimously recommended revising the requirements regarding interhandler transfers of free-tonnage raisins.
All handlers must currently report their interhandler transfers to the Committee on RAC Form No. 6, “Interhandler Transfer of Free-Tonnage Raisins.” This form is currently approved by the Office of Management and Budget (OMB) under OMB No. 0581-0178, Vegetable and Specialty Crops. This rule continues to add a certifying statement above the transferring handler's signature block to this form.
This rule will not impose any additional reporting or recordkeeping requirements on either small or large raisin handlers. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by the industry and public sector agencies. In addition, as noted in the final regulatory flexibility analysis, USDA has not identified any relevant Federal rules that duplicate, overlap or conflict with this rule.
Further, the Committee's meetings were widely publicized throughout the California raisin industry and all interested persons were invited to attend the meetings and participate in deliberations on all issues. The Committee's Administrative Issues Work Group discussed this issue at length during meetings on January 23, and February 1, 2007. The Administrative Issues Subcommittee thus recommended the change to the Committee on April 12, 2007. All of these meetings were public meetings and all entities, both large and small, were able to express views on this issue.
An interim final rule concerning this action was published in the Federal Register on August 7, 2007. Copies of the rule were also mailed to Committee members and alternates and all raisin handlers. In addition, the rule was made Start Printed Page 54343available through the Internet by USDA and the Office of the Federal Register. That rule provided for a 15-day comment period which ended on August 22, 2007. One comment supporting the rule was received. The commenter concurred that this action helps to maintain the integrity of the order.
After consideration of all relevant materials presented, including the Committee's recommendation, and other information, it is found that finalizing this interim final rule, without change, as published in the Federal Register (72 FR 44029, August 7, 2007), will tend to effectuate the declared policy of the Act.
[FR Doc. E7-18794 Filed 9-24-07; 8:45 am]