Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas and Imported Oranges; Change in Size Requirements for Oranges, 11297-11300 [2014-04603]
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Federal Register / Vol. 79, No. 40 / Friday, February 28, 2014 / Rules and Regulations
After consideration of all relevant
material presented, including the
Committee’s recommendation, and
other information, it is found that this
interim rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The shipping season for
grapefruit has already started; (2) this
action relaxes current size and grade
requirements; (3) the Committee
unanimously recommended this change
at a public meeting and interested
parties had an opportunity to provide
input; and (4) this rule provides a 60day comment period and any comments
received will be considered prior to
finalization of this rule.
List of Subjects in 7 CFR Part 906
Grapefruit, Marketing agreements,
Oranges, Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 906 is amended as
follows:
PART 906—ORANGES AND
GRAPEFRUIT GROWN IN LOWER RIO
GRANDE VALLEY IN TEXAS
1. The authority citation for 7 CFR
part 906 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. In § 906.340, paragraph (a)(2)(ii)(A)
and Table II—Grapefruit are revised to
read as follows:
■
emcdonald on DSK67QTVN1PROD with RULES
§ 906.340 Container, pack, and container
marking regulations.
(a) * * *
(2) * * *
(ii) * * *
(A) Grapefruit, when packed in any
carton, bag, or other container, shall be
sized in accordance with the sizes in the
following Table II, except as otherwise
provided in the regulations issued
pursuant to this part, and meet the
requirements of standard pack; and,
when in containers not packed
according to a definite pattern, shall be
sized in accordance with the sizes in
Table II: Provided, That the packing
tolerances in the U.S. Standards for
Grades of Grapefruit (Texas and States
other than Florida, California, and
Arizona), shall apply to fruit so packed.
All fruit packed to size 64 in the
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following Table II shall be sized in
accordance with the sizes in Table II but
need not otherwise meet the
requirements of standard pack:
Provided, That they meet the same
tolerances for off-size and pack as
defined in the U.S. Standards for Grades
of Grapefruit (Texas and States other
than Florida, California, and Arizona).
11297
Texas Valley Citrus Committee
(Committee). The corresponding change
in the orange import regulation is
required under section 8e of the
Agricultural Marketing Agreement Act
of 1937. This rule relaxes the minimum
size requirement for oranges from 2–6/
16 inches to 2–3/16 inches in diameter.
This rule will provide additional
oranges to meet market demand, helping
to maximize fresh shipments.
TABLE II—GRAPEFRUIT
DATES: Effective March 1, 2014;
[7⁄10 Bushel carton]
comments received by April 29, 2014
will be considered prior to issuance of
Pack size/
Diameter in inches
number of
a final rule.
grapefruit
Minimum
Maximum
ADDRESSES: Interested persons are
18 ......................
415⁄16
59⁄16 invited to submit written comments
23 ......................
45⁄16
5 concerning this rule. Comments must be
27 ......................
42⁄16
412⁄16 sent to the Docket Clerk, Marketing
32 ......................
315⁄16
48⁄16 Order and Agreement Division, Fruit
36 ......................
313⁄16
45⁄16 and Vegetable Program, AMS, USDA,
40 ......................
310⁄16
42⁄16 1400 Independence Avenue SW., STOP
48 ......................
39⁄16
314⁄16 0237, Washington, DC 20250–0237; Fax:
56 ......................
35⁄16
310⁄16 (202) 720–8938; or Internet: https://
64 ......................
3
38⁄16
www.regulations.gov. All comments
should reference the document number
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and the date and page number of this
■ 3. In § 906.365, paragraph (a)(4) is
issue of the Federal Register and will be
revised to read as follows:
made available for public inspection in
the Office of the Docket Clerk during
§ 906.365 Texas Orange and Grapefruit
regular business hours, or can be viewed
Regulation 34.
at: https://www.regulations.gov. All
(a) * * *
comments submitted in response to this
(4) Such grapefruit are at least pack
rule will be included in the record and
size 64 with a minimum diameter of 3
will be made available to the public.
inches.
Please be advised that the identity of the
*
*
*
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*
individuals or entities submitting
Dated: February 26, 2014.
comments will be made public on the
Rex A. Barnes,
Internet at the address provided above.
Associate Administrator, Agricultural
FOR FURTHER INFORMATION CONTACT:
Marketing Service.
Doris Jamieson, Marketing Specialist, or
[FR Doc. 2014–04596 Filed 2–27–14; 8:45 am]
Christian D. Nissen, Regional Director,
BILLING CODE P
Southeast Marketing Field Office,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
DEPARTMENT OF AGRICULTURE
AMS, USDA; Telephone: (863) 324–
3375, Fax: (863) 325–8793, or Email:
Agricultural Marketing Service
Doris.Jamieson@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
7 CFR Parts 906 and 944
Small businesses may request
information on complying with this
[Doc. No. AMS–FV–14–0009; FV14–906–1
IR]
regulation by contacting Jeffrey Smutny,
Marketing Order and Agreement
Oranges and Grapefruit Grown in
Division, Fruit and Vegetable Program,
Lower Rio Grande Valley in Texas and
AMS, USDA, 1400 Independence
Imported Oranges; Change in Size
Avenue SW., STOP 0237, Washington,
Requirements for Oranges
DC 20250–0237; Telephone: (202) 720–
AGENCY: Agricultural Marketing Service, 2491, Fax: (202) 720–8938, or Email:
Jeffrey.Smutny@ams.usda.gov.
USDA.
SUPPLEMENTARY INFORMATION: This rule
ACTION: Interim rule with request for
is issued under Marketing Agreement
comments.
and Order No. 906, as amended (7 CFR
SUMMARY: This rule relaxes the
Part 906), regulating the handling of
minimum size currently prescribed for
oranges and grapefruit grown in the
oranges under the marketing order for
Lower Rio Grande Valley in Texas,
oranges and grapefruit grown in Lower
hereinafter referred to as the ‘‘order.’’
Rio Grande Valley in Texas (order). The The order is effective under the
order is administered locally by the
Agricultural Marketing Agreement Act
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Federal Register / Vol. 79, No. 40 / Friday, February 28, 2014 / Rules and Regulations
of 1937, as amended (7 U.S.C. 601–674),
hereinafter referred to as the ‘‘Act.’’
This rule is also issued under section
8e of the Act, which provides that
whenever certain 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.
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Orders
12866, 13175, and 13563.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This rule is not intended to
have retroactive effect.
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 relaxes the minimum size
requirement for oranges prescribed
under the order. This rule relaxes the
minimum size requirement for oranges
from 2–6/16 inches to 2–3/16 inches in
diameter. This rule will provide
additional oranges to meet market
demand and will help maximize fresh
shipments. This change was
unanimously recommended by the
Committee at a meeting on December
11, 2013.
Section 906.40 of the order provides,
in part, authority to establish minimum
size requirements for Texas citrus.
Section 906.340 of the rules and
regulations includes Table I that
specifies the numerical size
designations and diameters used to
delineate the available pack sizes for
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oranges. Section 906.365 specifies the
minimum size requirement for fresh
shipments of Texas oranges. Minimum
grade and size requirements for oranges
imported into the United States are
currently in effect under § 944.312.
At its meeting, the Committee
discussed the impact the recent freeze
in California had on the orange crop and
agreed the freeze had reduced the
amount of fruit available for shipment to
the fresh market. They also discussed
the decline in citrus production in
Florida caused by citrus greening and
other diseases. The Committee believes
this creates a shortage of fruit available
to supply the fresh fruit market, which
the Texas citrus growers and handlers
should fill. The Committee noted that
additional fruit was available from the
Texas citrus industry. However, the fruit
is smaller in size and would not meet
the order’s current size requirements.
The Committee also recognized that
consumers are now showing a
preference for smaller-sized fruit. The
Committee believes relaxing the
requirements would make more fruit
available to fill the market shortfall
caused by the decline in production of
oranges from other growing regions and
provide smaller-sized fruit to meet
consumer demand.
Consequently, to make more fruit
available for shipment to the fresh
market and to meet consumer demand,
the Committee recommended a
relaxation of the size requirements for
oranges. This rule changes the
minimum size requirement for oranges
from 2–6/16 inches (size 138) to 2–3/16
inches (size 163) in diameter. This rule
also adds size 163 to the available pack
sizes for oranges listed under Table I in
§ 906.340, as well as adding language
concerning pack and sizing
requirements as appropriate.
The Committee believes relaxing the
size requirement will make more fruit
available to meet market demand,
helping to maximize fresh shipments
and increasing returns to growers and
handlers.
Section 8e of the Act provides that
when certain domestically produced
commodities, including oranges, 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 changes the minimum
size requirement under the domestic
handling regulations for oranges, a
corresponding change to the import
regulations must also be considered.
Minimum grade and size
requirements for oranges imported into
the United States are currently in effect
under § 944.312. Section 944.312(i) of
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the Fruit Import Regulations specifies
that oranges imported into the United
States are in most direct competition
with oranges produced in the area
covered by Marketing Order No. 906.
This change relaxes the minimum size
requirement for imported oranges from
2–6/16 inches to 2–3/16 inches. The
relaxation in the minimum size
requirement also has a beneficial impact
for importers of oranges. This change
allows a smaller-sized orange to be
shipped to the United States, thereby
increasing the amount of fruit available
for shipment to the fresh market, thus
benefiting importers.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
action on small entities. Accordingly,
AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses 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. Import regulations issued under
the Act are based on those established
under Federal marketing orders.
There are 13 registered handlers of
Texas citrus who are subject to
regulation under the marketing order
and approximately 150 producers of
oranges in the regulated area. There are
approximately 220 importers of oranges.
Small agricultural service firms, which
include handlers and importers, are
defined by the Small Business
Administration (SBA) as those having
annual receipts of less than $7,000,000,
and small agricultural producers are
defined as those having annual receipts
of less than $750,000 (13 CFR 121.201).
According to data from the National
Agricultural Statistics Service and the
industry and Committee, the average
f.o.b. price for Texas oranges during the
2012–13 season was $25.30 per box, and
total fresh orange shipments were
approximately 1.5 million boxes. Using
the average f.o.b. price and shipment
data, the majority of Texas orange
handlers could be considered small
businesses under SBA’s definition. In
addition, based on production data,
grower prices, and the total number of
Texas citrus growers, the average annual
grower revenue is below $750,000.
Information from the Foreign
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Agricultural Service, USDA, indicates
that the dollar value of imported fresh
oranges ranged from approximately
$71.2 million in 2008 to $107.4 million
in 2012. Using these values, most
importers would have annual receipts of
less than $7,000,000 for oranges. Thus,
the majority of handlers, producers, and
importers of oranges may be classified
as small entities.
Chile, South Africa, Mexico, and
Australia are the major orangeproducing countries exporting oranges
to the United States. In 2012, shipments
of oranges imported into the United
States totaled around 119,000 metric
tons. Of that amount, 51,510 metric tons
were imported from Chile, 35,960
metric tons were imported from South
Africa, 17,421 metric tons were
imported from Mexico, and 11,100
metric tons arrived from Australia.
This rule relaxes the minimum size
requirement for oranges covered under
the order from 2–6/16 inches (size 138)
to 2–3/16 inches (size 163) and makes
a corresponding change to the orange
import regulation. This change is
expected to make additional fruit
available for shipment to the fresh
market, maximize shipments, provide
additional returns to handlers and
growers, and respond to consumer
demand for small-sized fruit. Authority
for this change is provided in § 906.40.
This rule amends the provisions in
§§ 906.340, 906.365, and 944.312. The
Committee unanimously recommended
this change at its December 11, 2013,
meeting. The change in the import
regulation is required under section 8e
of the Act.
This action is not expected to increase
the costs associated with the order’s
requirements or the orange import
regulation. Rather, it is anticipated that
this action will have a beneficial impact.
Reducing the size requirement will
make additional fruit available for
shipment to the fresh market. The
Committee believes that this will
provide additional fruit to fill the
shortage caused by the reduced amount
of fruit available from other growing
regions and will provide the
opportunity to fulfill growing consumer
demand for smaller sized fruit. This
action will also provide an outlet for
fruit that may otherwise go unharvested,
maximizing fresh shipments and
increasing returns to handlers and
growers. The benefits of this rule are
expected to be equally available to all
fresh orange growers, handlers, and
importers, regardless of their size.
An alternative to this action would be
to maintain the current minimum
requirements for domestic shipments of
oranges. However, leaving the
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requirements unchanged would not
make any additional fruit available nor
would it provide smaller-sized fruit to
meet consumer demand. Therefore, this
alternative was rejected.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0189, Generic
Fruit Crops. No changes in those
requirements as a result of this action
are necessary. Should any changes
become necessary, they would be
submitted to OMB for approval.
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.
AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
In addition, 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 Texas
citrus industry and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations. Like all Committee
meetings, the December 11, 2013,
meeting was a public meeting and all
entities, both large and small, were able
to express their views on this issue.
Finally, interested persons are invited to
submit comments on this interim rule,
including the regulatory and
informational impacts of this action on
small businesses.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Jeffrey Smutny
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
This rule invites comments on
changes to the size requirements for
oranges currently prescribed under the
marketing order for oranges and
grapefruit grown in Lower Rio Grande
Valley in Texas and imported oranges.
Any comments received will be
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11299
considered prior to finalization of this
rule.
After consideration of all relevant
material presented, including the
Committee’s recommendation, and
other information, it is found that this
interim rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
In accordance with section 8e of the
Act, the United States Trade
Representative has concurred with the
issuance of this interim rule.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The shipping season for
oranges has already started; (2) this
action relaxes current size requirements;
(3) the Committee unanimously
recommended this change at a public
meeting and interested parties had an
opportunity to provide input; and (4)
this rule provides a 60-day comment
period and any comments received will
be considered prior to finalization of
this rule.
List of Subjects
7 CFR Part 906
Grapefruit, Marketing agreements,
Oranges, Reporting and recordkeeping
requirements.
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 Parts 906 and 944 are
amended as follows:
PART 906—ORANGES AND
GRAPEFRUIT GROWN IN LOWER RIO
GRANDE VALLEY IN TEXAS
1. The authority citation for 7 CFR
Part 906 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. In § 906.340, paragraph (a)(2)(i)(A)
and Table I—Oranges are revised to read
as follows:
■
§ 906.340 Container, pack, and container
marking regulations.
(a) * * *
(2) * * *
(i) * * *
(A) Oranges, when packed in any
carton, bag, or other container, shall be
sized in accordance with the sizes in the
following Table I, and meet the
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Federal Register / Vol. 79, No. 40 / Friday, February 28, 2014 / Rules and Regulations
requirements of standard pack; and,
when in containers not packed
according to a definite pattern, shall be
sized in accordance with the sizes in
Table I and otherwise meet the
requirements of standard sizing:
Provided, That the packing tolerances in
the U.S. Standards for Grades of
Oranges (Texas and States other than
Florida, California, and Arizona), shall
apply to fruit so packed. All fruit
packed to size 163 in the following
Table I shall be sized in accordance
with the sizes in Table I but need not
otherwise meet the requirements of
standard sizing or standard pack:
Provided, That they meet the same
tolerances for off-size and pack as
defined in the U.S. Standards for Grades
of Oranges (Texas and States other than
Florida, California, and Arizona):
DEPARTMENT OF THE TREASURY
Comptroller of the Currency
12 CFR Parts 1, 4, 5, 16, 23, 24, 28, 32,
34, 46, 116, 143, 145, 159, 160, 161, 163
and 192
[Docket ID OCC–2014–0004]
RIN 1557–AD73
Basel III Conforming Amendments
Related to Cross-References,
Subordinated Debt and Limits Based
on Regulatory Capital
Office of the Comptroller of the
Currency, Treasury.
ACTION: Interim final rule and request
for comments.
AGENCY:
The Office of the Comptroller
of the Currency (OCC) is making
technical and conforming amendments
[7⁄10 bushel carton]
to its regulations governing national
banks and Federal savings associations
Rack size/
Diameter in inches
to make those regulations consistent
number of
with the recently adopted Basel III
oranges
Minimum
Maximum
Capital Framework. As part of these
......................
312⁄16
51⁄16 technical amendments, the OCC is
......................
36⁄16
49⁄16 revising and clarifying its regulations
......................
34⁄16
46⁄16 governing subordinated debt applicable
......................
32⁄16
44⁄16 to national banks and Federal savings
......................
215⁄16
4 associations.
SUMMARY:
TABLE I—ORANGES
24
32
36
40
48
56 ......................
64 ......................
72 ......................
88 ......................
113 ....................
138 ....................
163 ....................
*
*
*
213⁄16
211⁄16
29⁄16
28⁄16
27⁄16
26⁄16
23⁄16
*
313⁄16
310⁄16
38⁄16
34⁄16
3
212⁄16
28⁄16
*
3. In § 906.365, paragraph (a)(2) is
revised to read as follows:
■
§ 906.365 Texas Orange and Grapefruit
Regulation 34.
(a) * * *
(2) Such oranges are at least pack size
163 with a minimum diameter of 2–3/
16 inches;
*
*
*
*
*
PART 944—FRUITS; IMPORT
REGULATIONS
4. In § 944.312 paragraph (a), remove
the number ‘‘2–6/16’’ and add in its
place ‘‘2–3/16.’’
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■
Dated: February 26, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2014–04603 Filed 2–27–14; 8:45 am]
BILLING CODE 3410–02–P
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This interim final rule is
effective March 31, 2014. Comments
must be received by March 31, 2014.
ADDRESSES: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments
through the Federal eRulemaking Portal
or email, if possible. Please use the title
‘‘Basel III Conforming Amendments
Related to Cross-References,
Subordinated Debt and Limits Based on
Regulatory Capital’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
‘‘regulations.gov’’: Go to https://
www.regulations.gov. Enter ‘‘Docket ID
OCC–2014–0004’’ in the Search Box and
click ‘‘Search.’’ Results can be filtered
using the filtering tools on the left side
of the screen. Click on ‘‘Comment Now’’
to submit public comments.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting
public comments.
• Email: regs.comments@
occ.treas.gov.
• Mail: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
DATES:
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Street SW., Suite 3E–218, Mail Stop
9W–11, Washington, DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW., Suite 3E–218, Mail Stop
9W–11, Washington, DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2014–0004’’ in your comment.
In general, OCC will enter all comments
received into the docket and publish
them on the Regulations.gov Web site
without change, including any business
or personal information that you
provide such as name and address
information, email addresses, or phone
numbers. Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically:
Go to https://www.regulations.gov. Enter
‘‘Docket ID OCC–2014–0004’’ in the
Search box and click ‘‘Search.’’
Comments can be filtered by Agency
using the filtering tools on the left side
of the screen.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for viewing
public comments, viewing other
supporting and related materials, and
viewing the docket after the close of the
comment period.
• Viewing Comments Personally: You
may personally inspect and photocopy
comments at the OCC, 400 7th Street
SW., Washington, DC. For security
reasons, the OCC requires that visitors
make an appointment to inspect
comments. You may do so by calling
(202) 649–6700. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and to submit to security screening in
order to inspect and photocopy
comments.
• Docket: You may also view or
request available background
documents and project summaries using
the methods described above.
FOR FURTHER INFORMATION CONTACT: Jean
Campbell, Senior Attorney, Legislative
and Regulatory Activities Division,
(202) 649–5490; and Patricia D. Goings,
Senior Licensing Analyst, or Patricia
Roberts, Senior Licensing Analyst,
Licensing Division, (202) 649–6260.
SUPPLEMENTARY INFORMATION:
E:\FR\FM\28FER1.SGM
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Agencies
[Federal Register Volume 79, Number 40 (Friday, February 28, 2014)]
[Rules and Regulations]
[Pages 11297-11300]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-04603]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 906 and 944
[Doc. No. AMS-FV-14-0009; FV14-906-1 IR]
Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas
and Imported Oranges; Change in Size Requirements for Oranges
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This rule relaxes the minimum size currently prescribed for
oranges under the marketing order for oranges and grapefruit grown in
Lower Rio Grande Valley in Texas (order). The order is administered
locally by the Texas Valley Citrus Committee (Committee). The
corresponding change in the orange import regulation is required under
section 8e of the Agricultural Marketing Agreement Act of 1937. This
rule relaxes the minimum size requirement for oranges from 2-6/16
inches to 2-3/16 inches in diameter. This rule will provide additional
oranges to meet market demand, helping to maximize fresh shipments.
DATES: Effective March 1, 2014; comments received by April 29, 2014
will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order and Agreement Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or Internet: https://www.regulations.gov. All comments should reference the document 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, or can be viewed at: https://www.regulations.gov. All comments submitted in response to this rule
will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting comments will be made public on the Internet at the
address provided above.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist,
or Christian D. Nissen, Regional Director, Southeast Marketing Field
Office, Marketing Order and Agreement Division, Fruit and Vegetable
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 325-8793, or
Email: Doris.Jamieson@ams.usda.gov or Christian.Nissen@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: Jeffrey.Smutny@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 906, as amended (7 CFR Part 906), regulating
the handling of oranges and grapefruit grown in the Lower Rio Grande
Valley in Texas, hereinafter referred to as the ``order.'' The order is
effective under the Agricultural Marketing Agreement Act
[[Page 11298]]
of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the
``Act.''
This rule is also issued under section 8e of the Act, which
provides that whenever certain 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.
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Orders 12866, 13175, and 13563.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
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 relaxes the minimum size requirement for oranges
prescribed under the order. This rule relaxes the minimum size
requirement for oranges from 2-6/16 inches to 2-3/16 inches in
diameter. This rule will provide additional oranges to meet market
demand and will help maximize fresh shipments. This change was
unanimously recommended by the Committee at a meeting on December 11,
2013.
Section 906.40 of the order provides, in part, authority to
establish minimum size requirements for Texas citrus. Section 906.340
of the rules and regulations includes Table I that specifies the
numerical size designations and diameters used to delineate the
available pack sizes for oranges. Section 906.365 specifies the minimum
size requirement for fresh shipments of Texas oranges. Minimum grade
and size requirements for oranges imported into the United States are
currently in effect under Sec. 944.312.
At its meeting, the Committee discussed the impact the recent
freeze in California had on the orange crop and agreed the freeze had
reduced the amount of fruit available for shipment to the fresh market.
They also discussed the decline in citrus production in Florida caused
by citrus greening and other diseases. The Committee believes this
creates a shortage of fruit available to supply the fresh fruit market,
which the Texas citrus growers and handlers should fill. The Committee
noted that additional fruit was available from the Texas citrus
industry. However, the fruit is smaller in size and would not meet the
order's current size requirements. The Committee also recognized that
consumers are now showing a preference for smaller-sized fruit. The
Committee believes relaxing the requirements would make more fruit
available to fill the market shortfall caused by the decline in
production of oranges from other growing regions and provide smaller-
sized fruit to meet consumer demand.
Consequently, to make more fruit available for shipment to the
fresh market and to meet consumer demand, the Committee recommended a
relaxation of the size requirements for oranges. This rule changes the
minimum size requirement for oranges from 2-6/16 inches (size 138) to
2-3/16 inches (size 163) in diameter. This rule also adds size 163 to
the available pack sizes for oranges listed under Table I in Sec.
906.340, as well as adding language concerning pack and sizing
requirements as appropriate.
The Committee believes relaxing the size requirement will make more
fruit available to meet market demand, helping to maximize fresh
shipments and increasing returns to growers and handlers.
Section 8e of the Act provides that when certain domestically
produced commodities, including oranges, 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 changes the minimum size requirement under the domestic handling
regulations for oranges, a corresponding change to the import
regulations must also be considered.
Minimum grade and size requirements for oranges imported into the
United States are currently in effect under Sec. 944.312. Section
944.312(i) of the Fruit Import Regulations specifies that oranges
imported into the United States are in most direct competition with
oranges produced in the area covered by Marketing Order No. 906. This
change relaxes the minimum size requirement for imported oranges from
2-6/16 inches to 2-3/16 inches. The relaxation in the minimum size
requirement also has a beneficial impact for importers of oranges. This
change allows a smaller-sized orange to be shipped to the United
States, thereby increasing the amount of fruit available for shipment
to the fresh market, thus benefiting importers.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this action on small entities.
Accordingly, AMS has prepared this initial regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses 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. Import regulations issued under
the Act are based on those established under Federal marketing orders.
There are 13 registered handlers of Texas citrus who are subject to
regulation under the marketing order and approximately 150 producers of
oranges in the regulated area. There are approximately 220 importers of
oranges. Small agricultural service firms, which include handlers and
importers, are defined by the Small Business Administration (SBA) as
those having annual receipts of less than $7,000,000, and small
agricultural producers are defined as those having annual receipts of
less than $750,000 (13 CFR 121.201).
According to data from the National Agricultural Statistics Service
and the industry and Committee, the average f.o.b. price for Texas
oranges during the 2012-13 season was $25.30 per box, and total fresh
orange shipments were approximately 1.5 million boxes. Using the
average f.o.b. price and shipment data, the majority of Texas orange
handlers could be considered small businesses under SBA's definition.
In addition, based on production data, grower prices, and the total
number of Texas citrus growers, the average annual grower revenue is
below $750,000. Information from the Foreign
[[Page 11299]]
Agricultural Service, USDA, indicates that the dollar value of imported
fresh oranges ranged from approximately $71.2 million in 2008 to $107.4
million in 2012. Using these values, most importers would have annual
receipts of less than $7,000,000 for oranges. Thus, the majority of
handlers, producers, and importers of oranges may be classified as
small entities.
Chile, South Africa, Mexico, and Australia are the major orange-
producing countries exporting oranges to the United States. In 2012,
shipments of oranges imported into the United States totaled around
119,000 metric tons. Of that amount, 51,510 metric tons were imported
from Chile, 35,960 metric tons were imported from South Africa, 17,421
metric tons were imported from Mexico, and 11,100 metric tons arrived
from Australia.
This rule relaxes the minimum size requirement for oranges covered
under the order from 2-6/16 inches (size 138) to 2-3/16 inches (size
163) and makes a corresponding change to the orange import regulation.
This change is expected to make additional fruit available for shipment
to the fresh market, maximize shipments, provide additional returns to
handlers and growers, and respond to consumer demand for small-sized
fruit. Authority for this change is provided in Sec. 906.40. This rule
amends the provisions in Sec. Sec. 906.340, 906.365, and 944.312. The
Committee unanimously recommended this change at its December 11, 2013,
meeting. The change in the import regulation is required under section
8e of the Act.
This action is not expected to increase the costs associated with
the order's requirements or the orange import regulation. Rather, it is
anticipated that this action will have a beneficial impact. Reducing
the size requirement will make additional fruit available for shipment
to the fresh market. The Committee believes that this will provide
additional fruit to fill the shortage caused by the reduced amount of
fruit available from other growing regions and will provide the
opportunity to fulfill growing consumer demand for smaller sized fruit.
This action will also provide an outlet for fruit that may otherwise go
unharvested, maximizing fresh shipments and increasing returns to
handlers and growers. The benefits of this rule are expected to be
equally available to all fresh orange growers, handlers, and importers,
regardless of their size.
An alternative to this action would be to maintain the current
minimum requirements for domestic shipments of oranges. However,
leaving the requirements unchanged would not make any additional fruit
available nor would it provide smaller-sized fruit to meet consumer
demand. Therefore, this alternative was rejected.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0189, Generic Fruit Crops. No changes in those
requirements as a result of this action are necessary. Should any
changes become necessary, they would be submitted to OMB for approval.
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.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
In addition, 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 Texas citrus industry and all interested persons were invited to
attend the meeting and participate in Committee deliberations. Like all
Committee meetings, the December 11, 2013, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue. Finally, interested persons are invited to submit
comments on this interim rule, including the regulatory and
informational impacts of this action on small businesses.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Jeffrey Smutny at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
This rule invites comments on changes to the size requirements for
oranges currently prescribed under the marketing order for oranges and
grapefruit grown in Lower Rio Grande Valley in Texas and imported
oranges. Any comments received will be considered prior to finalization
of this rule.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
this interim rule, as hereinafter set forth, will tend to effectuate
the declared policy of the Act.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this interim rule.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect and that good cause exists for not postponing the effective date
of this rule until 30 days after publication in the Federal Register
because: (1) The shipping season for oranges has already started; (2)
this action relaxes current size requirements; (3) the Committee
unanimously recommended this change at a public meeting and interested
parties had an opportunity to provide input; and (4) this rule provides
a 60-day comment period and any comments received will be considered
prior to finalization of this rule.
List of Subjects
7 CFR Part 906
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements.
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 Parts 906 and 944
are amended as follows:
PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY
IN TEXAS
0
1. The authority citation for 7 CFR Part 906 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 906.340, paragraph (a)(2)(i)(A) and Table I--Oranges are
revised to read as follows:
Sec. 906.340 Container, pack, and container marking regulations.
(a) * * *
(2) * * *
(i) * * *
(A) Oranges, when packed in any carton, bag, or other container,
shall be sized in accordance with the sizes in the following Table I,
and meet the
[[Page 11300]]
requirements of standard pack; and, when in containers not packed
according to a definite pattern, shall be sized in accordance with the
sizes in Table I and otherwise meet the requirements of standard
sizing: Provided, That the packing tolerances in the U.S. Standards for
Grades of Oranges (Texas and States other than Florida, California, and
Arizona), shall apply to fruit so packed. All fruit packed to size 163
in the following Table I shall be sized in accordance with the sizes in
Table I but need not otherwise meet the requirements of standard sizing
or standard pack: Provided, That they meet the same tolerances for off-
size and pack as defined in the U.S. Standards for Grades of Oranges
(Texas and States other than Florida, California, and Arizona):
Table I--Oranges
[\7/10\ bushel carton]
------------------------------------------------------------------------
Diameter in inches
Rack size/ number of oranges -------------------------
Minimum Maximum
------------------------------------------------------------------------
24............................................ 3\12/16\ 5\1/16\
32............................................ 3\6/16\ 4\9/16\
36............................................ 3\4/16\ 4\6/16\
40............................................ 3\2/16\ 4\4/16\
48............................................ 2\15/16\ 4
56............................................ 2\13/16\ 3\13/16\
64............................................ 2\11/16\ 3\10/16\
72............................................ 2\9/16\ 3\8/16\
88............................................ 2\8/16\ 3\4/16\
113........................................... 2\7/16\ 3
138........................................... 2\6/16\ 2\12/16\
163........................................... 2\3/16\ 2\8/16\
------------------------------------------------------------------------
* * * * *
0
3. In Sec. 906.365, paragraph (a)(2) is revised to read as follows:
Sec. 906.365 Texas Orange and Grapefruit Regulation 34.
(a) * * *
(2) Such oranges are at least pack size 163 with a minimum diameter
of 2-3/16 inches;
* * * * *
PART 944--FRUITS; IMPORT REGULATIONS
0
4. In Sec. 944.312 paragraph (a), remove the number ``2-6/16'' and add
in its place ``2-3/16.''
Dated: February 26, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-04603 Filed 2-27-14; 8:45 am]
BILLING CODE 3410-02-P