[Federal Register: January 6, 2004 (Volume 69, Number 3)]
[Rules and Regulations]
[Page 485-487]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ja04-1]
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Rules and Regulations
Federal Register
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[[Page 485]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 905 and 944
[Docket No. FV03-905-2 FIR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida
and Imported Grapefruit; Removing All Seeded Grapefruit Regulations,
Relaxation of Grade Requirements for Valencia and Other Late Type
Oranges, and Removing Quality and Size Regulations on Imported Seeded
Grapefruit
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule removing the regulations
for seeded grapefruit under the Florida citrus marketing order and for
seeded grapefruit imported into the United States. The order regulates
the handling of oranges, grapefruit, tangerines, and tangelos grown in
Florida (order) and is administered locally by the Citrus
Administrative Committee (committee). The change in the import
regulation is required under section 8e of the Agricultural Marketing
Agreement Act of 1937. Production of seeded grapefruit in Florida has
declined to the point that removing seeded grapefruit from order
requirements will have no significant impact on the grapefruit market.
This rule also continues in effect a relaxation of the minimum grade
requirements for domestic shipments of fresh Valencia and other late
type oranges the last few weeks of the season. The volume remaining at
the end of the season is small and has difficulty meeting grade
requirements. This rule will help maximize shipments and returns for
fresh Valencia and other late type oranges.
EFFECTIVE DATE: February 5, 2004.
FOR FURTHER INFORMATION CONTACT: William Pimental, Southeast Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 799 Overlook Drive, Suite A, Winter
Haven, FL 33884; telephone: (863) 324-3375, Fax: (863) 325-8793; or
George Kelhart, Technical Advisor, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR
part 905), 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.''
USDA 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 USDA 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 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.
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.
This rule continues in effect the removal of regulations for seeded
grapefruit under the order for Florida citrus. Thus, handlers of seeded
grapefruit are no longer subject to minimum grade, size, assessment,
and reporting requirements under the order. Production has declined to
the point that removing seeded grapefruit from order requirements will
have no significant impact on the grapefruit market. This rule also
continues in effect a relaxation in the minimum grade requirements for
domestic shipments of fresh Valencia and other late type oranges the
last few weeks of the season. For the purposes of this final rule, the
term ``domestic shipments'' includes shipments between the production
area and any point outside thereof in the 48 contiguous States and the
District of Columbia of the United States. The volume of fruit
remaining at the end of the season is small and has difficultly meeting
grade requirements. This rule will help the industry maximize fresh
shipments and returns for Valencia and other late type oranges. These
actions were unanimously recommended by the committee at its meeting on
July 1, 2003.
Sections 905.51 and 905.52 of the order authorize the committee to
recommend minimum grade and size regulation to USDA. The grade and size
requirements are designed to provide fresh markets with citrus fruit of
acceptable quality and size. This helps create buyer confidence and
contributes to stable marketing conditions. This is in the interest of
growers, handlers, and consumers, and is designed to increase returns
to Florida citrus growers.
Section 905.306 of the order's rules and regulations specifies the
minimum grade and size requirements for different
[[Page 486]]
varieties of fresh Florida citrus. Such requirements for domestic
shipments are specified in Sec. 905.306 in Table I of paragraph (a),
and for export shipments in Table II of paragraph (b). Prior to the
issuance of the interim final rule, the minimum grade for domestic
seeded grapefruit was a U.S. No. 1 as specified in the U.S. Standard
for Grades of Florida Grapefruit (7 CFR 51.750 through 51.784), with a
minimum size of 3\12/16\ inches in diameter for domestic shipments, and
3\9/16\ inches for export shipments. The minimum grade for domestic
Valencia and other late type oranges was a U.S. No. 1 for the season as
specified in the U.S. Standard for Grades of Florida Oranges and
Tangelos (7 CFR 51.1140 through 51.1179), with a minimum size of 2\8/
16\ inches in diameter for both domestic and export shipments.
Under Sec. Sec. 905.51 and 905.52 of the order, the committee has
authority to recommend to USDA the varieties of citrus to be regulated.
This rule continues to modify Sec. 905.306 by removing seeded
grapefruit from the list of entries in Table I of paragraph (a), and in
Table II of paragraph (b). The removal of seeded grapefruit from these
tables has the effect of removing the grade and size requirements for
seeded grapefruit under the order. Also, assessment and reporting
requirements no longer apply to seeded grapefruit. In addition, this
rule continues to amend Table I of Sec. 905.306 by reducing the
minimum grade requirements for domestic shipments of fresh Valencia and
other late type oranges from U.S. No. 1 to U.S. No. 2 external grade
from June 15 to July 31, each season.
In making its recommendation, the committee recognized that seeded
grapefruit is no longer significant in terms of shipments and market
share. During the 2002-03 season, only 150 cartons of seeded grapefruit
were shipped to the fresh market. This is down from 4,705 cartons
shipped in the 1998-99 season. Currently, shipments of seeded
grapefruit represent less than .0005 percent of fresh shipments of
Florida grapefruit. Seeded grapefruit production has declined as new
seedless varieties have been developed and planted. Consequently, the
committee determined that removing seeded grapefruit varieties from the
order regulations will not have a negative impact on the grapefruit
market.
In addition, this rule also continues to relax the minimum grade
requirements for domestic shipments of fresh Valencia and other late
oranges. The committee recommended reducing the minimum grade
requirements for Valencia and other late type oranges from a U.S. No. 1
to a U.S. No. 2 external grade with a U.S. No. 1 internal grade from
June 15, 2004, to July 31, 2004, and during the same period of each
season thereafter. Valencia and late type oranges have difficulty
meeting grade requirements late in the season. This is usually due to
regreening, which is considered a defect under the U.S. Standard for
Grades of Oranges.
At the end of the season growers still have a limited volume of
unharvested Valencia and late type oranges. The volume of fruit
remaining after June 15 is small, averaging less than 5 percent of the
crop over the last 5 years. The committee believes that permitting the
shipment of a U.S. No. 2 external grade during the specified time will
help the industry maximize fresh shipments and returns for Valencia and
other late type oranges. Consequently, the committee recommended that
during the period June 15 to July 31 that the grade standard be lowered
to U.S. No. 2 external grade with U.S. No. 1 internal grade for
Valencia and other late type oranges shipped to domestic markets.
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 removes the minimum size and grade requirements for seeded
grapefruit under the domestic handling regulations, a corresponding
change to the import regulations is necessary.
Minimum grade and size requirements for grapefruit imported into
the United States are currently in effect under Sec. 944.106 (7 CFR
944.106). The minimum grade and size requirements are specified in a
table in paragraph (a) of Sec. 944.106. This rule removes the minimum
grade and size requirements for imported seeded grapefruit to reflect
the change made under the order for seeded grapefruit grown in Florida.
Section 8e import requirements for oranges are based on the
marketing order for South Texas oranges and as such will not be
impacted by this relaxation.
Final Regulatory Flexibility Analysis
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 final 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 the 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 approximately 75 grapefruit and Valencia and other late
type orange handlers subject to regulation under the order,
approximately 11,000 producers of Florida citrus in the regulated area,
and approximately 10 grapefruit importers. Small agricultural service
firms are defined by the Small Business Administration (13 CFR 121.201)
as those having annual receipts of less than $5,000,000, and small
agricultural producers are defined as those having annual receipts of
less than $750,000.
Based on industry and Committee data, the average annual f.o.b.
price for fresh Florida grapefruit during the 2002-03 season was
approximately $7.24 per \4/5\-bushel carton, and total fresh shipments
for the 2002-03 season are estimated at 28.3 million cartons of
grapefruit. The average annual f.o.b. price for fresh Florida Valencia
and other late type oranges during the 2002-03 season was approximately
$6.99 per carton, and total fresh shipments are estimated at 3,669,000
cartons. Approximately 25 percent of all handlers handled 75 percent of
Florida's grapefruit and Valencia and other late type orange shipments.
Using the average f.o.b. prices, at least 75 percent of the grapefruit
and Valencia and other late type orange handlers could be considered
small businesses under SBA's definition. Therefore, the majority of
Florida grapefruit and Valencia and other late type orange handlers may
be classified as small entities. In addition, based on information from
the Foreign Agricultural Service, USDA, the dollar value of imported
grapefruit ranged from $902,000 in 1998 to $2,018,000 during the 2002
season. Using these numbers, all grapefruit importers may be classified
as small entities. The majority of Florida grapefruit and Valencia and
other late type orange producers may also be classified as small
entities.
This rule continues in effect the removal of seeded grapefruit from
regulation under the order. Handlers of seeded grapefruit are no longer
required to meet the minimum grade and size requirements and are not
subject to assessments and reporting requirements. Removing these
varieties from the minimum grade and size requirements
[[Page 487]]
will have no significant impact on the grapefruit market. This rule
also continues in effect a reduction in the minimum grade requirements
for domestic shipments of fresh Valencia and other late type oranges
from U.S. No. 1 to U.S. No. 2 external grade from June 15 to July 31
each season. This rule will help maximize shipments and returns for
fresh Valencia and other late type oranges.
Sections 905.51 and 905.52 of the order authorize the committee to
recommend minimum grade and size regulation to USDA. Section 905.306 of
the order's rules and regulations specifies the regulation period and
the minimum grade and size requirements for different varieties of
fresh Florida citrus. The committee unanimously recommended this action
at a meeting on July 1, 2003.
During the 2002-2003 season, only 150 cartons of seeded grapefruit
were shipped out of a total of 28.3 million 4/5-bushel cartons of
seedless grapefruit. Production of seeded varieties has declined as
newer seedless varieties have been developed and planted. Current
market share and shipment levels justify removal of the order
requirements for seeded grapefruit.
Valencia and late type oranges have difficulty meeting grade
requirements late in the season. At the end of the season, growers
still have a limited volume of unharvested Valencia and late type
oranges. The volume of fruit remaining after June 15 is small,
averaging less than 5 percent of the crop over the last 5 years. The
committee believes permitting the shipment of a U.S. No. 2 external
grade with a minimum U.S. No. 1 internal grade from June 15 to July 31
for domestic shipments will help the industry maximize fresh shipments
and returns for Valencia and other late type oranges.
This rule is expected to continue to have a positive impact on
affected entities as it relaxes handling requirements. With this rule
removing seeded grapefruit from the varieties regulated, handlers are
able to market these varieties free from order requirements. In
addition, the relaxation in grade requirements from June 15 to July 31
each season for Valencia and other late type oranges allows handlers to
make additional supplies available for the fresh domestic market, and
may increase returns. No additional costs are imposed on growers,
handlers, and importers with this rule. The benefits derived from this
change are expected to benefit both large and small entities equally.
During the period January 1 through December 31, 2002, imports of
grapefruit totaled 23,246 metric tons (approximately 1,100,000
cartons). The Bahamas were the principal source, accounting for nearly
99 percent of the total. Remaining imports were supplied by Israel.
Most imported grapefruit enters the United States from October through
May.
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. Because
this rule changes the requirements for domestic seeded grapefruit
shipments, this change must also be applicable to imported grapefruit.
This rule removes the import requirements for seeded grapefruit. This
regulation will benefit importers to the same extent that it benefits
Florida grapefruit producers and handlers.
One alternative to this action was to make no changes to the
order's handling regulations. However, the committee believes that
seeded grapefruit varieties have no significant impact on the
grapefruit market and that action should be taken to remove them from
the handling regulations. In addition, the committee believes that
making additional supplies of oranges available late in the season may
increase returns. Therefore, the alternative of making no changes was
rejected.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large citrus 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, as noted in the initial
regulatory flexibility analysis, USDA has not identified any relevant
Federal rules that duplicate, overlap, or conflict with this rule.
Further, the committee's meeting was widely publicized throughout
the citrus industry and all interested persons were invited to attend
the meeting and participate in committee deliberations. Like all
committee meetings, the July 1, 2003, meeting was a public meeting and
all entities, both large and small, were able to express their views on
this issue. Finally, interested persons were invited to submit
information on the regulatory and informational impacts of this action
on small businesses.
An interim final rule concerning this action was published in the
Federal Register on September 9, 2003. A correction to this docket was
published in the Federal Register on October 15, 2003. Copies were
mailed by the committee's staff to all committee members and citrus
handlers. In addition, the rule and correction were made available
through the Internet by the Office of the Federal Register and USDA.
The rule provided for a 60-day comment period, which ended November 10,
2003. No comments were received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html.
Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the committee's recommendation, and other information, it is found that
finalizing the interim final rule, without change as published in the
Federal Register (68 FR 53021, September 9, 2003) and as corrected in
the Federal Register (68 FR 59446, October 15, 2003) 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, Olives, Oranges.
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 68 FR 53021 on September 9, 2003, and
corrected at 68 FR 59446 on October 15, 2003, is adopted as a final
rule without change.
Dated: December 30, 2003.
A. J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-168 Filed 1-5-04; 8:45 am]
BILLING CODE 3410-02-P