[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] ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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