United States Standards for Grades of Almonds in the Shell, 14907-14909 [2013-05436]

Download as PDF 14907 Rules and Regulations Federal Register Vol. 78, No. 46 Friday, March 8, 2013 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 51 [Doc. Number AMS–FV–11–0046] United States Standards for Grades of Almonds in the Shell Agricultural Marketing Service, USDA. ACTION: Final rule. AGENCY: SUMMARY: This rule revises the United States Standards for Grades of Almonds in the Shell. These standards are issued under the Agricultural Marketing Act of 1946. The Agricultural Marketing Service (AMS) is revising the standards by changing the determination of internal defects from count to weight. These revisions will align the inspection procedures for incoming inspections (based on the marketing order) and outgoing inspections (based on the standards). These changes will promote greater uniformity and will provide consistency with current marketing practices. DATES: Effective April 8, 2013. FOR FURTHER INFORMATION CONTACT: Lindsay Mitchell, Standardization Branch, Specialty Crops Inspection (SCI) Division, (540) 361–1127 or 1150. The United States Standards for Almonds in the Shell are available through the SCI Division Web site at: https://www.ams.usda.gov/ freshinspection. tkelley on DSK3SPTVN1PROD with RULES SUPPLEMENTARY INFORMATION: Executive Order 12866 Regulatory Flexibility Act This rule has been determined to be not significant for purposes of Executive Order 12866 and, therefore, has not been reviewed by the Office of Management and Budget. VerDate Mar<15>2010 16:06 Mar 07, 2013 Jkt 229001 Pursuant to the requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601–612), AMS has considered the economic impact of the action on small entities. The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions so that small businesses will not be unduly or disproportionately burdened. Accordingly, AMS has prepared this final regulatory flexibility analysis. The final rule will revise the United States Standards for Grades of Almonds in the Shell (standards) that were issued under the Agricultural Marketing Act of 1946 (7 U.S.C. 1621–1627). Standards issued under the 1946 Act are voluntary. Small agricultural service firms, which include handlers, have been defined by the Small Business Administration (SBA) (13 CFR 121.201) as those having annual receipts of less than $7,000,000 and small agricultural producers have been defined as those having annual receipts of less than $750,000. There are approximately 53 handlers of almonds that would potentially be affected by the changes set forth in this rule and approximately 6,500 producers of almonds. Information provided by the Almond Board of California (ABC) indicates that approximately 36 percent of the handlers would be considered small agricultural service firms. According to data reported by the National Agricultural Statistics Service (NASS), the two-year average crop value for 2008–09 and 2009–10 was $2.566 billion. Dividing that average by 6,500 producers yields average estimated producer revenues of $394,769, which suggests that the majority of almond producers would be considered small entities according to the SBA’s definition. The California almond bearing acreage increased approximately 9 percent between 2008 and 2010, from 680,000 to 740,000 acres. Approximately 1.643 billion pounds (shelled basis) of almonds were produced during the 2009–10 season. More than two thirds of California’s almond crop is exported to approximately 90 countries worldwide, and comprises nearly 80 percent of the world’s almond supply. The changes herein will have the effect of improving grading methods and accuracy without adding any additional PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 financial burden to buyers or sellers of almonds in the shell. This rule changes one step in a multi-step grading procedure (7 CFR 51.2080) and changes the method of determining one of five tolerances used in determining grade (7 CFR 51.2075(b)(5)). The outgoing inspection procedure will become more closely aligned with incoming inspection by shifting the basis (from count to weight) in the standards for determining the percentage of internal defects in an inspection sample of almonds in the shell. In addition to simplifying the grading process, the weight basis would yield a more accurate percentage of internal defects. With a count method, a defect such as shriveling would result in a particular kernel being counted as one of the 300 kernels in the sample with internal defects, even if the defect left only a small portion of the original kernel in the sample. Due to its lower weight relative to a fully formed kernel, a shriveled kernel has a smaller impact on the percentage of internal defects when the sample is weighed rather than counted. The lower average percentage of internal defects using the weight method was confirmed by a review of shipping point inspection records, with 14 examples in which both the count and weight method were used on the same sample of inshell almonds. The average serious damage percentages of the count method and the weight method were 1.5 percent and 0.8 percent, respectively. Smaller percentages of defects in sampled lots using the weight method will mean larger quantities of almonds meet a particular grade, which would positively affect the quality of the almonds, as it would yield more accurate percentages of defects, resulting in higher payments to growers. Shifting the determination of internal (kernel) defects from a count basis to a weight basis in the standards is expected to contribute to efficiencies in the grading process. It would make the internal defects aspect of the outgoing inspection process consistent with that of the incoming inspection. Weighing rather than counting the kernels may result in slightly more time in the inspection process, but any potential effect on the cost of inspections is expected to be minor or nonexistent, and would be offset by the benefits. E:\FR\FM\08MRR1.SGM 08MRR1 14908 Federal Register / Vol. 78, No. 46 / Friday, March 8, 2013 / Rules and Regulations There is no disproportionate impact on smaller entities; entities of all sizes will benefit. This rule would not impose any additional reporting or recordkeeping requirements on either small or large almond producers, handler or exporters. The use of grading services and grading standards is voluntary unless required by a specific Act, Federal Marketing Order or Agreement, or other regulations governing domestic, import or export shipments. USDA has not identified any Federal rules that duplicate, overlap, or conflict with this rule. However, there is a marketing program which regulates the handling of almonds under 7 CFR part 981. The revision in this action only affects the inspection procedures for internal defects in the standards. As such, the action would not affect almonds in the shell under the marketing order. Alternatives were considered for this action. One alternative would be to not issue a rule. However, the need for revisions remains due to differing procedures for incoming and outgoing almond inspections, and is the result of a request by industry. Further, the purpose of these standards is to facilitate the marketing of agricultural commodities. tkelley on DSK3SPTVN1PROD with RULES Executive Order 12988 The rule has been reviewed under Executive Order 12988, Civil Justice Reform. This action is not intended to have retroactive effect. There are no administrative procedures which must be exhausted prior to any judicial challenge to the provisions of the rule. Section 203(c) of the Act directs and authorizes the Secretary of Agriculture ‘‘to develop and improve standards of quality, condition, quantity, grade and packaging and recommend and demonstrate such standards in order to encourage uniformity and consistency in commercial practices.’’ AMS is committed to carrying out this authority in a manner that facilitates the marketing of agricultural commodities and makes copies of official standards available upon request. Background On March 11, 2011, AMS received a letter from the Almond Board of California (Board) requesting that the procedure for measuring internal (kernel) defects in the United States Standards for Grades of Almonds in the Shell be changed from a count basis to a weight basis. The purpose of this change is to align incoming and outgoing inspection procedures. Currently, almonds must undergo incoming inspections and may undergo VerDate Mar<15>2010 16:06 Mar 07, 2013 Jkt 229001 outgoing inspections. The almond marketing order (part 981—Almonds Grown in California) mandates that the percentage of inedible kernels is determined during an incoming inspection. As required in the marketing order (7 CFR 981.42 and 981.442 (Quality Control)), federally licensed state inspectors perform these inspections on 100 percent of the product moving from growers to handlers (packers). ‘‘Inedible kernel’’ is defined in §§ 981.8 and 981.408 of the marketing order and is based on internal (kernel) defects as defined in the standards, in §§ 51.2087 (Decay), 51.2088 (Rancidity), 51.2089 (Damage) and 51.2090 (Serious Damage). Federally licensed state inspectors also perform outgoing inspections, which are voluntary, on approximately 75 percent of all of the almonds going from the handlers to domestic and international markets, according to shipping point records maintained by Federal State Inspection. The current procedures for determining the percentage of defective kernels in the two different inspections are not the same. For incoming inspections, the percentage of inedible kernels is determined on a weight basis. With outgoing inspections, however, determining the percentage of internal (kernel) defects, which is one step in a multi-step procedure specified in the standards for determining U.S. grade, is done through a combination of count and weight of the nuts in the sample. This change to the standards would more closely align the procedures of the incoming and outgoing inspections. A key reason for making this change is the increasing magnitude of exports of almonds in the shell. Between the 2006/ 07 and 2009/10 seasons, export shipments of almonds in the shell doubled, rising from 148 to 297 million pounds (inshell basis), according to trade data from the Foreign Agricultural Service of USDA. During this same time period, the number of handlers exporting almonds in the shell increased by 42 percent. Due to the substantial increase in the number of handlers and volume of shipments, the Board received numerous inquiries regarding the reasons for the different procedures for determining internal defects on incoming and outgoing inspections. A number of handlers asked the Board’s Food Quality and Safety Committee (committee) to look into how to change the standards to make outgoing inspections more consistent with the incoming inspection method. Determining the percentage of nuts with internal defects is the third of three PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 required steps in section 51.2080 (Determination of Grade). In addition, a 10 percent tolerance for internal (kernel) defects is one of five tolerances that are specified in section 51.2075(b)(5) for determining whether a lot of inshell almonds is graded as U.S. No. 1. Committee staff queried handlers that ship almonds in the shell about changing the determination of internal defects from a count basis to a weight basis, which would apply to both of these sections. A proposed rule regarding these revisions to the United States Standards for Grades of Almonds in the Shell was published in the Federal Register on July 16, 2012 (77 FR 41707). The public comment period closed on August 15, 2012, with no responses. Based on the information gathered, AMS believes the revisions will bring the standards for almonds in the shell in line with the marketing order and thereby improve their usefulness. List of Subjects in 7 CFR part 51 Agricultural commodities, Food grades and standards, Fruits, Nuts, Reporting and record keeping requirements, Trees, Vegetables. For reasons set forth in the preamble, 7 CFR part 51 is to be amended as follows: PART 51—[AMENDED] 1. The authority citation for part 51 continues to read as follows: ■ Authority: 7 U.S.C. 1621–1627. 2. In § 51.2075, paragraph (b)(5) is revised to read as follows: ■ § 51.2075 U.S. No. 1 * * * * * (b) * * * (5) For internal (kernel) defects. 10 percent, by weight, for almonds with kernels failing to meet the requirements of this grade: Provided, that not more than one-half of this tolerance or 5 percent shall be allowed for kernels affected by decay or rancidity, damaged by insects or mold or seriously damaged by shriveling: And provided further, that no part of this tolerance shall be allowed for live insects inside the shell. * * * * * ■ 3. Section 51.2080 is revised to read as follows: § 51.2080 Determination of grade. In grading the inspection sample, the percentage of loose hulls, pieces of shell, chaff and foreign material is determined on the basis of weight. Next, the percentages of nuts which are of dissimilar varieties, undersize or have E:\FR\FM\08MRR1.SGM 08MRR1 Federal Register / Vol. 78, No. 46 / Friday, March 8, 2013 / Rules and Regulations adhering hulls or defective shells are determined by count, using an adequate portion of the total sample. Finally, the nuts in that portion of the sample are cracked and the percentage having internal defects is determined on the basis of weight. Dated: February 28, 2013. David R. Shipman, Administrator, Agricultural Marketing Service. [FR Doc. 2013–05436 Filed 3–7–13; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 1230 [Doc. No. AMS–LS–07–0143] Pork Promotion, Research, and Consumer Information Program; Section 610 Review Agricultural Marketing Service, USDA. ACTION: Confirmation of regulations. tkelley on DSK3SPTVN1PROD with RULES AGENCY: SUMMARY: This document summarizes the results of an Agricultural Marketing Service (AMS) review of the Pork Promotion, Research, and Consumer Information Program (Program), commonly known as the Pork Checkoff Program, under the criteria contained in section 610 of the Regulatory Flexibility Act (RFA). Based upon this review, AMS concluded that there is a continued need for the Pork Promotion, Research, and Consumer Information Order (Order). Copies of the review performed by AMS are available to interested parties. DATES: Effective March 8, 2013. ADDRESSES: Interested persons may obtain a copy of the review. Requests for copies should be sent to Kenneth R. Payne, Director, Marketing Programs Division, Livestock and Seed Program, AMS, USDA, Room 2628–S, STOP 0251, 1400 Independence Avenue SW, Washington, DC 20250–0251 or email Kenneth.Payne@ams.usda.gov. FOR FURTHER INFORMATION CONTACT: Kenneth R. Payne, Director, Marketing Programs Division, Livestock and Seed Program, AMS, USDA, Room 2628–S, STOP 0251, 1400 Independence Avenue SW, Washington, DC 20250–0251 or email Kenneth.Payne@ams.usda.gov. SUPPLEMENTARY INFORMATION: The Order (7 CFR Part 1230) is authorized under the Pork Promotion, Research, and Consumer Information Act of 1985 (Act) (7 U.S.C. 4801–4819). As part of a comprehensive strategy to strengthen VerDate Mar<15>2010 16:06 Mar 07, 2013 Jkt 229001 the pork industry’s position in the marketplace, this national pork Program maintains and expands existing domestic and foreign markets and develops new markets for pork and pork products. The Program is funded by a mandatory assessment of $0.40 perhundred-dollars of market value. Nearly all producers, with few exceptions, owning and marketing swine, regardless of the size of their operation or the value of their swine, must pay the assessment. A comparable assessment is collected on all imported swine, pork, and pork products. Assessments collected under this Program are used for promotion, research, consumer information, and industry information. The Program is administered by the National Pork Board (Board), which is composed of 15 producer members. Board members serve 3-year terms, but no individual may serve more than two consecutive 3-year terms. Producer members are selected by the National Pork Producers Delegate Body, a group of producer and importer members that represent all 50 States and importers. The Program became effective on September 5, 1986, when the Order was issued. Assessments began on November 1, 1986. On February 18, 1999, AMS published in the Federal Register (64 FR 8014) its plan to review certain regulations. On January 4, 2002, AMS published in the Federal Register (67 FR 525) an update to its plan to review regulations, including the Pork Promotion and Research Program, which is conducted under the Order, under criteria contained in section 610 of the RFA (5 USC 601–612). Additional updates were provided on August 14, 2003, in the Federal Register (68 FR 48575) and on March 24, 2006, in the Federal Register (71 FR 14827). Because many AMS regulations impact small entities, AMS decided, as a matter of policy, certain regulations warranted review, although they may not meet the threshold requirement under section 610 of the RFA. The reviews are being conducted over a ten-year period under section 610 of the RFA. The Program was reviewed for the purpose of determining whether it should be continued without change, or should be amended, rescinded, or terminated (consistent with the objectives of applicable statutes) to minimize the impacts on small entities. AMS published a notice for review and request for written comments on the Order in the March 27, 2008, issue of the Federal Register (73 FR 16218). Comments were due May 27, 2008. USDA received one comment generally opposing the Program, which did not PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 14909 specifically address the criteria provided under section 610 of the RFA. The review was undertaken to determine whether the Order should be continued without change, amended, or rescinded (consistent with the objectives of the Act) to minimize the impacts on small entities. In conducting this review and using the guidance set forth in section 610 of the RFA, AMS considered the following factors: (1) The continued need for the Order; (2) the nature of complaints or comments received from the public concerning the Order; (3) the complexity of the Order; (4) the extent to which the Order overlaps, duplicates, or conflicts with other Federal rules, and, to the extent feasible, with State and local governmental rules; and (5) the length of time since the Order has been evaluated or the degree to which technology, economic conditions or other factors have changed in the area affected by the Order. Based upon this review, AMS has concluded that there is continued need for the Order. AMS plans to continue working with the pork industry in maintaining an effective program. Interested parties may request a copy of the review by AMS as set forth in this Confirmation of Regulations. Authority: 7 U.S.C. 4801–4819. Dated: February 28, 2013. David R. Shipman, Acting Administrator, Agricultural Marketing Service. [FR Doc. 2013–05432 Filed 3–7–13; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 71 [Docket No. FAA–2013–0079; Airspace Docket No. 13–AWA–1] RIN 2120–AA66 Amendment of Class B Airspace Description; Houston, TX Federal Aviation Administration (FAA), DOT. ACTION: Final rule, technical amendment. AGENCY: SUMMARY: This action amends the description of the Houston, TX, Class B airspace area by changing the airport reference for describing the William P. Hobby Airport in the Class B airspace header from ‘‘Secondary Airport’’ to ‘‘Primary Airport.’’ This change is editorial only and does not alter the E:\FR\FM\08MRR1.SGM 08MRR1

Agencies

[Federal Register Volume 78, Number 46 (Friday, March 8, 2013)]
[Rules and Regulations]
[Pages 14907-14909]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-05436]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

========================================================================


Federal Register / Vol. 78, No. 46 / Friday, March 8, 2013 / Rules 
and Regulations

[[Page 14907]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 51

[Doc. Number AMS-FV-11-0046]


United States Standards for Grades of Almonds in the Shell

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule revises the United States Standards for Grades of 
Almonds in the Shell. These standards are issued under the Agricultural 
Marketing Act of 1946. The Agricultural Marketing Service (AMS) is 
revising the standards by changing the determination of internal 
defects from count to weight. These revisions will align the inspection 
procedures for incoming inspections (based on the marketing order) and 
outgoing inspections (based on the standards). These changes will 
promote greater uniformity and will provide consistency with current 
marketing practices.

DATES: Effective April 8, 2013.

FOR FURTHER INFORMATION CONTACT: Lindsay Mitchell, Standardization 
Branch, Specialty Crops Inspection (SCI) Division, (540) 361-1127 or 
1150. The United States Standards for Almonds in the Shell are 
available through the SCI Division Web site at: https://www.ams.usda.gov/freshinspection.

SUPPLEMENTARY INFORMATION:

Executive Order 12866 Regulatory Flexibility Act

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612), AMS has considered the 
economic impact of the action on small entities. The purpose of the RFA 
is to fit regulatory actions to the scale of businesses subject to such 
actions so that small businesses will not be unduly or 
disproportionately burdened. Accordingly, AMS has prepared this final 
regulatory flexibility analysis.
    The final rule will revise the United States Standards for Grades 
of Almonds in the Shell (standards) that were issued under the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627). Standards 
issued under the 1946 Act are voluntary.
    Small agricultural service firms, which include handlers, have been 
defined by the Small Business Administration (SBA) (13 CFR 121.201) as 
those having annual receipts of less than $7,000,000 and small 
agricultural producers have been defined as those having annual 
receipts of less than $750,000. There are approximately 53 handlers of 
almonds that would potentially be affected by the changes set forth in 
this rule and approximately 6,500 producers of almonds. Information 
provided by the Almond Board of California (ABC) indicates that 
approximately 36 percent of the handlers would be considered small 
agricultural service firms. According to data reported by the National 
Agricultural Statistics Service (NASS), the two-year average crop value 
for 2008-09 and 2009-10 was $2.566 billion. Dividing that average by 
6,500 producers yields average estimated producer revenues of $394,769, 
which suggests that the majority of almond producers would be 
considered small entities according to the SBA's definition.
    The California almond bearing acreage increased approximately 9 
percent between 2008 and 2010, from 680,000 to 740,000 acres. 
Approximately 1.643 billion pounds (shelled basis) of almonds were 
produced during the 2009-10 season. More than two thirds of 
California's almond crop is exported to approximately 90 countries 
worldwide, and comprises nearly 80 percent of the world's almond 
supply.
    The changes herein will have the effect of improving grading 
methods and accuracy without adding any additional financial burden to 
buyers or sellers of almonds in the shell. This rule changes one step 
in a multi-step grading procedure (7 CFR 51.2080) and changes the 
method of determining one of five tolerances used in determining grade 
(7 CFR 51.2075(b)(5)). The outgoing inspection procedure will become 
more closely aligned with incoming inspection by shifting the basis 
(from count to weight) in the standards for determining the percentage 
of internal defects in an inspection sample of almonds in the shell.
    In addition to simplifying the grading process, the weight basis 
would yield a more accurate percentage of internal defects. With a 
count method, a defect such as shriveling would result in a particular 
kernel being counted as one of the 300 kernels in the sample with 
internal defects, even if the defect left only a small portion of the 
original kernel in the sample. Due to its lower weight relative to a 
fully formed kernel, a shriveled kernel has a smaller impact on the 
percentage of internal defects when the sample is weighed rather than 
counted.
    The lower average percentage of internal defects using the weight 
method was confirmed by a review of shipping point inspection records, 
with 14 examples in which both the count and weight method were used on 
the same sample of inshell almonds. The average serious damage 
percentages of the count method and the weight method were 1.5 percent 
and 0.8 percent, respectively. Smaller percentages of defects in 
sampled lots using the weight method will mean larger quantities of 
almonds meet a particular grade, which would positively affect the 
quality of the almonds, as it would yield more accurate percentages of 
defects, resulting in higher payments to growers.
    Shifting the determination of internal (kernel) defects from a 
count basis to a weight basis in the standards is expected to 
contribute to efficiencies in the grading process. It would make the 
internal defects aspect of the outgoing inspection process consistent 
with that of the incoming inspection. Weighing rather than counting the 
kernels may result in slightly more time in the inspection process, but 
any potential effect on the cost of inspections is expected to be minor 
or nonexistent, and would be offset by the benefits.

[[Page 14908]]

    There is no disproportionate impact on smaller entities; entities 
of all sizes will benefit.
    This rule would not impose any additional reporting or 
recordkeeping requirements on either small or large almond producers, 
handler or exporters.
    The use of grading services and grading standards is voluntary 
unless required by a specific Act, Federal Marketing Order or 
Agreement, or other regulations governing domestic, import or export 
shipments. USDA has not identified any Federal rules that duplicate, 
overlap, or conflict with this rule. However, there is a marketing 
program which regulates the handling of almonds under 7 CFR part 981. 
The revision in this action only affects the inspection procedures for 
internal defects in the standards. As such, the action would not affect 
almonds in the shell under the marketing order.
    Alternatives were considered for this action. One alternative would 
be to not issue a rule. However, the need for revisions remains due to 
differing procedures for incoming and outgoing almond inspections, and 
is the result of a request by industry. Further, the purpose of these 
standards is to facilitate the marketing of agricultural commodities.

Executive Order 12988

    The rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
There are no administrative procedures which must be exhausted prior to 
any judicial challenge to the provisions of the rule.
    Section 203(c) of the Act directs and authorizes the Secretary of 
Agriculture ``to develop and improve standards of quality, condition, 
quantity, grade and packaging and recommend and demonstrate such 
standards in order to encourage uniformity and consistency in 
commercial practices.'' AMS is committed to carrying out this authority 
in a manner that facilitates the marketing of agricultural commodities 
and makes copies of official standards available upon request.

Background

    On March 11, 2011, AMS received a letter from the Almond Board of 
California (Board) requesting that the procedure for measuring internal 
(kernel) defects in the United States Standards for Grades of Almonds 
in the Shell be changed from a count basis to a weight basis. The 
purpose of this change is to align incoming and outgoing inspection 
procedures.
    Currently, almonds must undergo incoming inspections and may 
undergo outgoing inspections. The almond marketing order (part 981--
Almonds Grown in California) mandates that the percentage of inedible 
kernels is determined during an incoming inspection. As required in the 
marketing order (7 CFR 981.42 and 981.442 (Quality Control)), federally 
licensed state inspectors perform these inspections on 100 percent of 
the product moving from growers to handlers (packers). ``Inedible 
kernel'' is defined in Sec. Sec.  981.8 and 981.408 of the marketing 
order and is based on internal (kernel) defects as defined in the 
standards, in Sec. Sec.  51.2087 (Decay), 51.2088 (Rancidity), 51.2089 
(Damage) and 51.2090 (Serious Damage).
    Federally licensed state inspectors also perform outgoing 
inspections, which are voluntary, on approximately 75 percent of all of 
the almonds going from the handlers to domestic and international 
markets, according to shipping point records maintained by Federal 
State Inspection. The current procedures for determining the percentage 
of defective kernels in the two different inspections are not the same. 
For incoming inspections, the percentage of inedible kernels is 
determined on a weight basis. With outgoing inspections, however, 
determining the percentage of internal (kernel) defects, which is one 
step in a multi-step procedure specified in the standards for 
determining U.S. grade, is done through a combination of count and 
weight of the nuts in the sample. This change to the standards would 
more closely align the procedures of the incoming and outgoing 
inspections.
    A key reason for making this change is the increasing magnitude of 
exports of almonds in the shell. Between the 2006/07 and 2009/10 
seasons, export shipments of almonds in the shell doubled, rising from 
148 to 297 million pounds (inshell basis), according to trade data from 
the Foreign Agricultural Service of USDA. During this same time period, 
the number of handlers exporting almonds in the shell increased by 42 
percent. Due to the substantial increase in the number of handlers and 
volume of shipments, the Board received numerous inquiries regarding 
the reasons for the different procedures for determining internal 
defects on incoming and outgoing inspections.
    A number of handlers asked the Board's Food Quality and Safety 
Committee (committee) to look into how to change the standards to make 
outgoing inspections more consistent with the incoming inspection 
method. Determining the percentage of nuts with internal defects is the 
third of three required steps in section 51.2080 (Determination of 
Grade). In addition, a 10 percent tolerance for internal (kernel) 
defects is one of five tolerances that are specified in section 
51.2075(b)(5) for determining whether a lot of inshell almonds is 
graded as U.S. No. 1. Committee staff queried handlers that ship 
almonds in the shell about changing the determination of internal 
defects from a count basis to a weight basis, which would apply to both 
of these sections.
    A proposed rule regarding these revisions to the United States 
Standards for Grades of Almonds in the Shell was published in the 
Federal Register on July 16, 2012 (77 FR 41707). The public comment 
period closed on August 15, 2012, with no responses. Based on the 
information gathered, AMS believes the revisions will bring the 
standards for almonds in the shell in line with the marketing order and 
thereby improve their usefulness.

List of Subjects in 7 CFR part 51

    Agricultural commodities, Food grades and standards, Fruits, Nuts, 
Reporting and record keeping requirements, Trees, Vegetables.
    For reasons set forth in the preamble, 7 CFR part 51 is to be 
amended as follows:

PART 51--[AMENDED]

0
1. The authority citation for part 51 continues to read as follows:

    Authority:  7 U.S.C. 1621-1627.


0
2. In Sec.  51.2075, paragraph (b)(5) is revised to read as follows:


Sec.  51.2075  U.S. No. 1

* * * * *
    (b) * * *
    (5) For internal (kernel) defects. 10 percent, by weight, for 
almonds with kernels failing to meet the requirements of this grade: 
Provided, that not more than one-half of this tolerance or 5 percent 
shall be allowed for kernels affected by decay or rancidity, damaged by 
insects or mold or seriously damaged by shriveling: And provided 
further, that no part of this tolerance shall be allowed for live 
insects inside the shell.
* * * * *

0
3. Section 51.2080 is revised to read as follows:


Sec.  51.2080  Determination of grade.

    In grading the inspection sample, the percentage of loose hulls, 
pieces of shell, chaff and foreign material is determined on the basis 
of weight. Next, the percentages of nuts which are of dissimilar 
varieties, undersize or have

[[Page 14909]]

adhering hulls or defective shells are determined by count, using an 
adequate portion of the total sample. Finally, the nuts in that portion 
of the sample are cracked and the percentage having internal defects is 
determined on the basis of weight.

    Dated: February 28, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-05436 Filed 3-7-13; 8:45 am]
BILLING CODE 3410-02-P
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