[Federal Register Volume 59, Number 38 (Friday, February 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4235]


[[Page Unknown]]

[Federal Register: February 25, 1994]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 944

[Docket No. FV-92-058-PR]

 

Fruits; Import Regulations (Oranges); Proposed Reinstatement of 
Orange Import Grade Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would reinstate, with minor revisions, 
temporarily suspended minimum grade requirements for oranges imported 
into the United States. These requirements were temporarily suspended 
to provide the United States Trade Representative (USTR) adequate time 
to review contemplated changes in the import requirements. This 
proposed rule is needed so that imported oranges meet the same minimum 
grade requirements as those established for oranges under the marketing 
order covering Texas oranges.

DATES: Comments must be received by March 14, 1994.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent in triplicate to 
the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 
96456, room 2523-S, Washington, DC 20090-6456, or by facsimile at 202-
720-5698. Comments should reference the docket number and the date and 
page number of this issue of the Federal Register and will be available 
for public inspection in the Office of the Docket Clerk during regular 
business hours.

FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Specialist, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, Room 2523-S, Washington, DC 20090-6456; 
telephone: 202-720-2431; or Belinda G. Garza, McAllen Marketing Field 
Office, USDA/AMS, 1313 East Hackberry, McAllen, Texas 78501; telephone: 
210-682-2833.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under section 
8e (7 U.S.C. Section 608e-1) of the Agricultural Marketing Agreement 
Act of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as 
the Act. Section 8e of the Act provides that whenever specified 
commodities, including oranges, are regulated under a Federal marketing 
order, imports of these commodities into the United States are 
prohibited unless they meet the same or comparable grade, size, 
quality, or maturity requirements as those in effect for the 
domestically produced commodities. Section 8e also provides that 
whenever two or more marketing orders regulate the same commodity 
produced in different areas of the United States, the Secretary shall 
determine which area the imported commodity is in most direct 
competition with and apply regulations based on that area to the 
imported commodity. The Secretary has determined that oranges imported 
into the United States are in most direct competition with oranges 
grown in Texas regulated under Marketing Order No. 906, and has found 
that the minimum grade and size requirements for imported oranges 
should be the same as those established for oranges under Marketing 
Order No. 906.
    The Department is issuing this rule in conformance with Executive 
Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have retroactive 
effect. This rule would not preempt any State or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this rule. There are no administrative procedures which 
must be exhausted prior to any judicial challenge to the provisions of 
this rule.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of the Agricultural Marketing Service 
(AMS) has considered the economic impact of this action 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.
    Import regulations issued under the Act are based on those 
established under Federal marketing orders. Thus, this action should 
also have small entity orientation, and impact both small and large 
business entities in a manner comparable to rules issued under such 
marketing orders. There are about 20 importers of oranges who would be 
subject to the proposed import grade requirement. Small agricultural 
service firms, which include importers, have been defined by the Small 
Business Administration (13 CFR 121.601) as those whose annual receipts 
are less than $3,500,000. A majority of these importers may be 
classified as small entities.
    The minimum grade requirements specified in Sec. 944.312 (7 CFR 
part 944) for oranges imported into the United States were in effect on 
a continuous basis prior to their suspension on October 24, 1991 (56 FR 
55983, October 31, 1991; 57 FR 2674, January 23, 1992). These 
requirements were suspended to provide the USTR adequate time to review 
contemplated changes in the orange import requirements needed to 
reflect changes in the minimum grade requirements for Texas oranges in 
Sec. 906.365 (7 CFR part 906) under Marketing Order No. 906.
    This proposed rule would amend Sec. 944.312 (7 CFR 944.312; as 
amended at 58 FR 69185, December 30, 1993; and corrected at 59 FR 4246, 
January 31, 1994) to reinstate the minimum grade requirement of U.S. 
No. 2 for oranges imported into the United States. The proposed minimum 
grade requirement for imported oranges would be the same as the current 
minimum grade requirement for oranges grown in Texas under Marketing 
Order No. 906, and would be the same as the grade requirement in effect 
under Sec. 944.312 just prior to the grade requirement's suspension on 
October 24, 1991.
    This proposed rule would also define the term ``oranges'', to 
precisely identify the fruit covered by this import regulation.
    This proposed rule also would change the minimum quantity exemption 
under the import regulation to 400 pounds of fruit per day. The minimum 
quantity exemption in the suspended import regulation was ten 7/10 
bushel cartons (420 pounds). This proposed change would make the 
quantity exempted in the import regulation comparable to the quantity 
exempted from handling regulations under the marketing order for 
oranges grown in Texas.
    The minimum size requirement currently in effect under Sec. 944.312 
requiring that oranges imported into the United States be at least 2\6/
16\ inches in diameter would remain in effect unchanged by this 
proposed rule.
    According to the Department of Agriculture's Foreign Agricultural 
Service, U.S. fresh orange imports during the 1992/93 season were well 
below the corresponding levels in the 1991/92 season, reflecting record 
fresh-market domestic supplies. U.S. imports of fresh oranges during 
the 1992/93 season (beginning November 1) through July 1993 totaled 
10.4 million pounds, down 60 percent from the same period in 1991/92. 
In the previous five seasons (1987/88-1991/92) fresh orange imports 
varied greatly. In 1990/91, the late December 1990 freeze caused 
extensive damage to orange crops in California, and resulted in an 
unusually large quantity of imports for that season. From 1987/88 
through 1991/92, U.S. imports of fresh oranges ranged from a high of 
137.3 million pounds in the 1990/91 season, to a low of 17.2 million 
pounds in 1988/89, with an average of 53.0 million pounds per season.
    Fresh U.S. orange imports typically come from five countries, with 
Mexico being the primary source followed by Morocco, Spain, Israel, and 
the Dominican Republic. In the 1991/92 season, Mexico accounted for 5.8 
million pounds or 17 percent of U.S. fresh orange imports. In 
comparison, 1990/91 Mexico imports were 56.1 million pounds or 41 
percent of U.S. fresh market orange imports. From 1987/88 through 1991/
92, U.S. fresh orange imports from Mexico ranged from a low of 2.2 
million pounds (1988/89), to a high of 56.1 million pounds (1990/91), 
with a five year average of 18.0 million pounds per season.
    In accordance with section 8e of the Act, the USTR has concurred 
with the issuance of this proposed rule.
    Based on the above, the Administrator of the AMS has determined 
that this proposed rule would not have a significant economic impact on 
a substantial number of small entities.
    This proposed rule reflects the Department's appraisal of the need 
to reinstate the suspended orange import grade requirements and make 
the specified changes in the orange import regulation, as hereinafter 
set forth, to effectuate the declared policy of the Act.
    A comment period of 15 days is deemed appropriate because the 
orange import grade requirements need to be in place as soon as 
possible, since oranges are currently being imported into the United 
States.

List of Subjects in 7 CFR Part 944

    Avocados, Food grades and standards, Grapefruit, Grapes, Imports, 
Kiwifruit, Limes, Olives, Oranges.

    For the reasons set forth in the preamble, 7 CFR part 944 is 
proposed to be amended as follows:

PART 944--FRUITS; IMPORT REGULATIONS

    1. The authority citation for 7 CFR part 944 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. Section 944.312 is revised to read as follows:


Sec. 944.312  Orange import regulation.

    (a) Pursuant to section 8e (7 U.S.C. section 608e-1) of the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), and part 944--Fruits; Import Regulations, the importation into 
the United States of any oranges is prohibited unless such oranges 
grade at least U.S. No. 2, and they are at least 2 \6/16\ inches in 
diameter.
    (b) The term ``oranges'' is defined as Citrus sinensis, Osbeck.
    (c) The term ``importation'' means release from custody of the 
United States Customs Service.
    (d) Terms and tolerances pertaining to grade and size requirements, 
which are defined in the United States Standards for Grades of Oranges 
(Texas and States other than Florida, California, and Arizona) (7 CFR 
51.680-714), shall be applicable herein.
    (e) Any person may import up to 400 pounds a day of oranges exempt 
from the requirements specified in this section.
    (f) The Federal or Federal-State Inspection Service, Fruit and 
Vegetable Division, Agricultural Marketing Service, United States 
Department of Agriculture, is designated as the governmental inspection 
service for certifying the grade, size, quality, and maturity of 
oranges imported into the United States. Inspection by the Federal or 
Federal-State Inspection Service with evidence thereof in the form of 
an official inspection certificate, issued by the respective service, 
applicable to the particular shipment of oranges, is required on all 
such imports. The inspection and certification services will be 
available upon application in accordance with the Regulations Governing 
Inspection, Certification and Standards of Fresh Fruits, Vegetables, 
and Other Products (7 CFR part 5l), and in accordance with the 
regulation designating inspection services and procedure for obtaining 
inspection and certification (7 CFR part 944.400).
    (g) Any oranges which fail to meet the import requirements, and are 
not being imported for purposes of consumption by charitable 
institutions, distribution by relief agencies, or processing into 
products; prior to or after reconditioning may be exported or disposed 
of under the supervision of the Federal or Federal-State Inspection 
Service with the costs of certifying the disposal of such oranges borne 
by the importer.
    (h) The grade, size, quality, and maturity requirements of this 
section shall not be applicable to oranges imported for consumption by 
charitable institutions, distribution by relief agencies, or processing 
into products, but shall be subject to the safeguard provisions 
contained in Sec. 944.350.
    (i) The Secretary has determined that oranges imported into the 
United States are in most direct competition with oranges grown in 
Texas regulated under Marketing Order No. 906.

    Dated: February 18, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-4235 Filed 2-24-94; 8:45 am]
BILLING CODE 3410-02-P