[Federal Register Volume 61, Number 88 (Monday, May 6, 1996)]
[Proposed Rules]
[Pages 20188-20189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11154]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 61, No. 88 / Monday, May 6, 1996 / Proposed
Rules
[[Page 20188]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 958
[FV96-958-1PR]
Onions Grown in Certain Designated Counties in Idaho, and Malheur
County, Oregon, and Imported Onions; Modification of Size Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would change the ``repacker/prepacker''
size designations for all varieties of onions except white or red
varieties by increasing the minimum diameter from 1\1/2\ inches to 1\3/
4\ inches, and the maximum diameter from 2\1/2\ inches to 2\3/4\ inches
for onions in this size category. Recent trends in buyer preference
reflect an increasing demand for larger size onions in the ``repacker/
prepacker'' category. This proposed rule is intended to benefit
producers and handlers by increasing their flexibility and efficiency
in the packaging of ``repacker/prepacker'' size onions. As provided
under section 8e of the Agricultural Marketing Agreement Act of 1937,
the proposed change to the minimum size requirement would also apply to
all imported onions except white or red varieties.
DATES: Comments must be received by June 5, 1996.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent in triplicate to the Docket
Clerk, Fruit and Vegetable Division, AMS, USDA, room 2523, South
Building, P.O. Box 96456, Washington, D.C. 20090-6456; Fax: (202) 720-
5698. All comments should reference the docket number and the date and
page number of this issue of the Federal Register and will be made
available for public inspection in the Office of the Docket Clerk
during regular business hours.
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; FAX: (503)326-
7440; or Robert F. Matthews, Marketing Order Administration Branch,
Fruit and Vegetable Division, AMS, USDA, room 2523, South Building,
P.O. Box 96456, Washington, D.C. 20090-6456; telephone: (202)690-0464;
FAX: (202)720-5698.
SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing
Agreement No. 130 and Marketing Order No. 958 (7 CFR Part 958), both as
amended, regulating the handling of onions grown in certain designated
counties in Idaho and Malheur County, Oregon. The marketing agreement
and marketing order are effective under the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter
referred to as the Act.
This proposed rule, which would also affect the minimum size
requirements for all varieties of imported onions, except white or red
varieties, is also issued pursuant to section 8e of the Act. The
provisions of section 8e and the onion import regulations are discussed
later in this proposed rule.
The Department of Agriculture (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 proposal is not intended to have retroactive
effect. This proposed 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 a bill in equity is filed
not later than 20 days after the date of the entry of the ruling.
There are no administrative proceedings which must be exhausted
prior to any judicial challenge to the provisions import regulations
issued under section 8e of the act.
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.
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.
There are currently 34 handlers subject to regulation under the
marketing order and approximately 550 onion producers in the regulated
production area. In addition, at least 148 importers of onions are
subject to import regulations and would be affected by this proposed
rule.
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. The
majority of handlers and producers of Idaho-Eastern Oregon onions may
be classified as small entities. The majority of importers may also be
classified as small entities.
Pursuant to authority contained in section 958.51 of the marketing
order, the Idaho-Eastern Oregon Onion Committee (Committee), at its
November 16, 1995, meeting, unanimously recommended changing the
minimum and maximum sizes set forth in section 958.328(a)(3)(ii) of the
handling regulation. For this size
[[Page 20189]]
category, the Committee recommended increasing the minimum diameter
from 1\1/2\ inches to 1\3/4\ inches, and the maximum diameter from 2\1/
2\ inches to 2\3/4\ inches for all onions except white or red varieties
produced and handled in the production area. Yellow onions are the
major group produced in the regulated production area.
This proposed rule would modify a marketing order size category
that is recognized by the onion industry as ``repacker'' or
``prepacker'' size onions. Onions in this size category are generally
packed and shipped in 50-pound sacks for later repacking into various
consumer packs.
The U.S. Standards for Grades of Onions were recently amended to
include a classification for ``repacker/prepacker'' size onions (60 FR
46976, September 8, 1995), effective October 10, 1995. Section 51.2836
of the U.S. Standards defines such onions as those ranging from a
minimum diameter of 1\3/4\ inches to a maximum diameter of 3 inches.
The U.S. Standards also specify that not more than 5 percent of the
onions in a lot may be undersized and that not more than 10 percent may
be oversized.
Recent trends in buyer preference reflect an increasing demand for
larger size onions in the ``repacker/prepacker'' category. The
Committee reports that the current maximum diameter of 2\1/2\ inches
for this size category is too restrictive and has resulted in a high
percentage of onions being packed in a different category due to
oversize. This has resulted in fewer ``repacker/prepacker'' size onions
being available for market. With an increase in the maximum allowable
diameter to 2\3/4\ inches for ``repacker/prepacker'' size onions, the
Committee expects the quantity of such onions available for market to
increase. The Committee recommended an increase to 2\3/4\ inches rather
than 3 inches, the upper limit of the size range specified in the U.S.
Standards, because the smaller size is more suitable for this industry
and its customers. In addition to the proposed increase in the maximum
diameter for onions in this category, the Committee recommended that
the minimum diameter be increased from 1\1/2\ inches to 1\3/4\ inches
to be the same as the recently amended U.S. Standards.
Any costs to handlers and producers attributable to this proposed
regulation, if adopted, are expected to be offset by the benefits
derived from improved returns. The proposed modification would increase
the volume of onions marketed in this size category, and is expected to
result in higher returns for producers and handlers.
Section 8e of the Act requires that when certain domestically
produced commodities, including onions, are regulated under a Federal
marketing order, imports of that commodity must meet the same or
comparable grade, size, quality, or maturity requirements. Section 8e
also provides that whenever two or more marketing orders regulating the
same commodity produced in different areas of the United States are
concurrently in effect, the Secretary shall determine which of the
areas produces the commodity in more direct competition with the
imported commodity. Imports must then meet the requirements established
for the particular area.
Grade, size, quality, and maturity regulations have been issued
regularly under both Marketing Order 958 and Marketing Order 959, which
regulates the handling of onions grown in South Texas. The current
import regulation (7 CFR 980.117) specifies that import requirements
for onions are to be based on the seasonal categories of onions grown
in both marketing order areas. The import regulations specify that
imported onions must meet the requirements of Marketing Order 958
during the June 16 through March 9 period each season and Marketing
Order 959 through the remainder of the year. Rulemaking is now in
progress that would, if approved, change the beginning date of
Marketing Order 958 requirements to June 5 (61 FR 4941; February 9,
1996). Current import regulations also provide that all varieties of
imported onions, except for white varieties, must be a minimum of 1\1/
2\ inches in diameter. This proposal would change the import
requirements for the period June 16 through March 9 each marketing year
to provide that all varieties of onions except white or red varieties
shall be a minimum of 1\3/4\ inches in diameter. While no changes are
required in the language of section 980.117, all imported onions other
than white or red varieties would be required to meet the minimum size
requirement proposed herein.
Based on available information, the Agricultural Marketing Service
has determined that the issuance of this proposed rule would not have a
significant economic impact on a substantial number of small entities.
A 30-day comment period is provided to allow interested persons to
respond to this proposal. All written comments received within the
comment period will be considered before a final determination is made
on this matter.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this proposed rule.
List of Subjects in 7 CFR Part 958
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 958 is
proposed to be amended as follows:
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON
1. The authority citation for 7 CFR part 958 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 958.328 is amended by revising paragraph (a)(3)(ii) to
read as follows:
Sec. 958.328 Handling Regulation.
* * * * *
(a) * * *
(3) * * *
(ii) U.S. No. 1, 1\3/4\ inches minimum to 2\3/4\ maximum diameter;
or
* * * * *
Dated: April 30, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-11154 Filed 5-3-96; 8:45 am]
BILLING CODE 3410-02-P