Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida and Imported Grapefruit; Change in Grade and Size Requirements, 16195-16201 [2019-07801]
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Federal Register / Vol. 84, No. 75 / Thursday, April 18, 2019 / Rules and Regulations
inspection will focus on regulated
plants and other potential sources of
Phytophthora ramorum inoculum.
(ii) Sampling. Samples must be taken
from host plants, soil, standing water,
drainage water, water for irrigation, and
any other articles determined by the
inspector to be possible sources of
Phytophthora ramorum inoculum. The
number of samples taken may vary
depending on the possible sources of
inoculum identified at the nursery, as
well as the number of host articles in
the nursery.
(iii) Testing. Samples must be labeled
and sent for testing to a laboratory
approved by APHIS and must be tested
using a test method approved by APHIS
in accordance with § 301.92–12.
(iv) Negative results; certification. If
all samples tested in accordance with
this section and § 301.92–12 return
negative results for Phytophthora
ramorum, an inspector may certify that
the nursery is free of Phytophthora
ramorum at the time of the inspection.
If the nursery is inspected and
determined by an inspector to be free of
Phytophthora ramorum inoculum each
time it is inspected for 3 consecutive
years, the nursery will thereafter be
inspected in accordance with paragraph
(a)(1) of this section.
(v) Positive results. If any samples
tested in accordance with this section
and § 301.92–12 return positive results
for Phytophthora ramorum, the nursery
may ship lots of regulated, restricted,
and associated articles interstate
pursuant to § 301.92–5(b) only if the lot
is determined to be free from
Phytophthora ramorum inoculum. The
method for this determination will be
specified in the nursery’s compliance
agreement with APHIS.
(b) Nurseries in quarantined areas
shipping non-host nursery stock
interstate. Nurseries located in
quarantined areas and that move nonhost nursery stock interstate must meet
the requirements of this paragraph or
the requirements of paragraph (a) of this
section. If such nurseries contain any
regulated or restricted articles, the
nursery must meet the requirements of
paragraph (a) of this section. This
paragraph (b) only applies if there are
no regulated or associated articles or
nursery stock at the nursery. Nurseries
that do not meet the requirements of
paragraph (a) of this section or this
paragraph (b) are prohibited from
moving non-host nursery stock
interstate.
(1) Annual visual inspection. The
nursery must be visually inspected
annually for symptoms of Phytophthora
ramorum. Inspections and
determinations of freedom from
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evidence of Phytophthora ramorum
infestation must occur at the time when
the best expression of symptoms is
anticipated.
(2) Sampling. All plants showing
symptoms of infection with
Phytophthora ramorum upon inspection
will be sampled and tested in
accordance with § 301.92–12. If
symptomatic plants are found upon
inspection, the following plants must be
withheld from interstate shipment until
testing is completed and the nursery is
found free of evidence of Phytophthora
ramorum in accordance with this
paragraph (b) and § 301.92–12: All
symptomatic plants, any plants located
in the same lot as the suspect plant, and
any plants located within 2 meters of
this lot of plants.
(3) Certification. If all plant samples
tested in accordance with this section
and § 301.92–12 return negative results
for Phytophthora ramorum, or if an
inspector at the nursery determines that
plants in a nursery exhibit no signs of
infection with Phytophthora ramorum,
the inspector may certify that the
nursery free of evidence of
Phytophthora ramorum infestation at
the time of inspection. Certification is
valid for 1 year and must be renewed
each year to continue shipping plants
interstate.
(c) Regulated establishments shipping
regulated, restricted, or associated
articles of interstate—(1) Inspections. To
meet the conditions of § 301.92–5(b), the
regulated establishment must be
inspected at least twice annually for
symptoms of Phytophthora ramorum
infestation by an inspector. The
inspection will focus on regulated
plants and other potential sources of
Phytophthora ramorum inoculum.
(2) Sampling. Samples must be taken
from host plants, soil, standing water,
drainage water, water for irrigation,
growing media, and any other articles
determined by the inspector to be
possible sources of Phytophthora
ramorum inoculum. The number of
samples taken may vary depending on
the possible sources of inoculum
identified at the nursery, as well as the
number of host articles in the nursery.
(3) Testing. Samples must be labeled
and sent for testing to a laboratory
approved by APHIS and must be tested
using a test method approved by APHIS
in accordance with § 301.92–12.
(4) Negative results; certification. If all
samples tested in accordance with this
section and § 301.92–12 return negative
results for Phytophthora ramorum, an
inspector may certify that the nursery is
free of Phytophthora ramorum at the
time of the inspection. For purposes of
§ 301.92–5(b), regulated, restricted, and
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16195
associated articles at a certified nursery
are considered free from Phytophthora
ramorum until the time of the next
inspection.
(5) Positive results. If any samples
tested in accordance with this section
and § 301.92–12 return positive results
for Phytophthora ramorum, the nursery
may ship lots of regulated, restricted,
and associated articles interstate
pursuant to § 301.92–5(b) only if the lot
is determined to be free from
Phytophthora ramorum inoculum. The
method for this determination will be
specified in the nursery’s compliance
agreement with APHIS.
(Approved by the Office of Management
and Budget under control number 0579–
0310)
§ 301.92–12
[Amended]
11. In § 301.92–12, paragraph (a)
introductory text is amended by
removing the words ‘‘prescreen plant
samples’’ and adding the words
‘‘prescreen samples’’ in their place.
■
Done in Washington, DC, this 12th day of
April 2019.
Kevin Shea,
Administrator, Animal and Plant Health
Inspection Service.
[FR Doc. 2019–07798 Filed 4–17–19; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 905 and 944
[Doc. AMS–SC–18–0046; SC18–905–3 FR]
Oranges, Grapefruit, Tangerines, and
Pummelos Grown in Florida and
Imported Grapefruit; Change in Grade
and Size Requirements
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule implements a
recommendation from the Citrus
Administrative Committee (Committee)
to revise the grade and size
requirements currently prescribed under
the marketing order for oranges,
grapefruit, tangerines, and pummelos
grown in Florida. This rule removes the
grade and size requirements for
Ambersweet and Temple oranges, and
simplifies the tables outlining the grade
and size requirements for interstate and
export shipments. A corresponding
change will be made to the grapefruit
import regulation as required under
section 8e of the Agricultural Marketing
Agreement Act of 1937.
SUMMARY:
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DATES:
Federal Register / Vol. 84, No. 75 / Thursday, April 18, 2019 / Rules and Regulations
Effective May 20, 2019.
FOR FURTHER INFORMATION CONTACT:
Abigail Campos, Marketing Specialist,
or Christian D. Nissen, Regional
Director, Southeast Marketing Field
Office, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (863) 324–
3375, Fax: (863) 291–8614, or Email:
Abigail.Campos@usda.gov or
Christian.Nissen@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Richard.Lower@usda.gov.
This final
rule, pursuant to 5 U.S.C. 553, amends
regulations issued to carry out a
marketing order as defined in 7 CFR
900.2(j). This final rule is issued under
Marketing Order No. 905, as amended (7
CFR part 905), regulating the handling
of oranges, grapefruit, tangerines, and
pummelos grown in Florida. Part 905
(referred to as the ‘‘Order’’) is effective
under the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), hereinafter referred to
as the ‘‘Act.’’ The Committee locally
administers the Order and is comprised
of producers and handlers of citrus
operating within the area of production,
and a public member.
This rule is also issued under section
8e of the Act, which provides that
whenever certain specified
commodities, including grapefruit, 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 final rule in
conformance with Executive Orders
13563 and 13175. This action falls
within a category of regulatory actions
that the Office of Management and
Budget (OMB) exempted from Executive
Order 12866 review. Additionally,
because this final rule does not meet the
definition of a significant regulatory
action, it does not trigger the
requirements contained in Executive
Order 13771. See OMB’s Memorandum
titled ‘‘Interim Guidance Implementing
Section 2 of the Executive Order of
January 30, 2017, titled ‘Reducing
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SUPPLEMENTARY INFORMATION:
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Regulation and Controlling Regulatory
Costs’ ’’ (February 2, 2017).
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 that must be exhausted prior
to any judicial challenge to the
provisions of import regulations issued
under section 8e of the Act.
This final rule revises the grade and
size requirements under the Order. This
action removes the grade and size
requirements for Ambersweet and
Temple oranges, and simplifies the
tables outlining the grade and size
requirements for interstate and export
shipments. These changes were
unanimously recommended by the
Committee on April 26, 2018. In
addition to these changes, the
Committee also recommended relaxing
the minimum grade requirements for
oranges and Fall-glo, Sunburst, and
Honey tangerines from U.S. No. 1 to
U.S. No. 2.
On November 15, 2018, the
Committee met again and revisited the
recommendation to relax the minimum
grade requirements for oranges and
tangerines. The Committee voted to
withdraw their recommendation to relax
the minimum grade requirements for
oranges and tangerines from a U.S. No.1
to a U.S. No. 2, recommending that
USDA consider maintaining the current
minimum grade requirements for
oranges and tangerines. After receiving
the Committee recommendation, USDA
reviewed volume and shipment
projected by National Agricultural
Statistical Service (NASS) for the 2018–
19 season and determined the final rule
should be revised to reflect a
withdrawal of the original proposal.
Consequently, this final rule does not
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include the proposed change to the
minimum grade requirements for
oranges and tangerines from a U.S. No.
1 to a U.S. No. 2.
Section 905.52 provides authority to
establish minimum grade requirements
for Florida citrus. Section 905.306
specifies, in part, the minimum grade
requirements for citrus. Requirements
for domestic shipments are specified in
§ 905.306 in Table I of paragraph (a) and
for export shipments in Table II of
paragraph (b). Minimum grade and size
requirements for grapefruit imported
into the United States are currently in
effect pursuant to § 944.106 (7 CFR
944.106).
The Committee met on April 26, 2018,
and discussed ways to provide
additional supplies of Florida citrus to
the marketplace and increase grower
and handler returns. Committee
members recognized that with the
ongoing impacts of citrus greening,
some adjustments should be made to
assist growers and handlers and provide
for the utilization of additional volume
of Florida citrus in the fresh market.
Citrus greening has caused the steady
decline in Florida citrus production and
has spread to all citrus producing
counties in Florida. From the 2011–12
to the 2016–17 season, citrus greening
has reduced Florida’s orange production
by 53 percent and tangerine production
by 67 percent. During the same period,
fresh shipments have declined by 54
percent for oranges and 80 percent for
tangerines.
The industry suffered additional
production losses as a result of damage
from Hurricane Irma in September 2017.
According to USDA’s National
Agricultural Statistics Service (NASS),
production for the 2016–17 season
totaled 68.8 million boxes for oranges
and 1.6 million boxes for tangerines. For
the 2017–18 season, the forecasted
production was expected to decrease by
34 percent for oranges and 53 percent
for tangerines. Also, the citrus trees may
take several seasons to recover from the
hurricane damage, further impacting
production and supply.
Given the decrease in production, the
Committee recommended relaxing the
minimum grade requirements for
oranges and Fallglo, Sunburst, and
Honey tangerines from U.S. No. 1 to
U.S. No. 2. During the discussion of this
change, one Committee member stated
the reduction in grade could help
address the limited volumes of fruit
available in the market. It was also
stated that there was a good fresh juice
market for the U.S. No. 2 orange and
that this change could help promote the
sale of more oranges for the fresh juice
market.
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Federal Register / Vol. 84, No. 75 / Thursday, April 18, 2019 / Rules and Regulations
For tangerines, it was stated that the
very limited volumes of tangerines
being produced in Florida was causing
a supply concern for shippers. Members
agreed lowering the grade for tangerines
would promote increased shipments.
The Committee had agreed relaxing
the grade from a U.S. No. 1 to a U.S. No.
2 for oranges and Fallglo, Sunburst,
Honey tangerines would allow growers
and handlers to utilize a greater
percentage of the crop and would make
more fruit available for shipment. By
implementing this change, more fruit
would meet grade requirements, and the
industry would be able to put an
additional 300,000 cartons or more into
the fresh market, helping to maximize
shipments and to increase grower and
handler return.
The Committee met again on
November 15, 2018, and revisited the
recommendation to relax the minimum
grade requirements for oranges and
tangerines. During their discussion,
members raised their concerns about its
initial recommendation. In April 2018,
the Committee made its
recommendation given the decline in
volume due to citrus greening and
Hurricane Irma. Some members stated
the recommendation to reduce the grade
from a U.S. No. 1 to U.S. No. 2 was
based on the projected numbers
provided. At the time, the forecasted
production for the 2017–18 season was
expected to decline by 34 percent for
oranges and 53 percent for tangerines
and there were questions about how
much the production for the 2018–19
season would recover.
The production estimates for the
2018–19 season were issued prior to the
Committee’s November meeting. Those
estimates show production for the
2018–19 season are up considerably
from 2017–18 production. According to
NASS, the forecasted production for the
2018–19 season is 77 million boxes of
oranges, 1.2 million boxes of tangerines,
and 6.4 million boxes of grapefruit.
Production for 2017–18 was just 44.95
million boxes for oranges, 750,000 boxes
of tangerines, and 3.8 million boxes of
grapefruit. Compared to the 2017–18
production, the 2018–19 season will
provide an increase in production of 71
percent for oranges, 61 percent for
tangerines, and 68 percent for
grapefruit.
Committee members stated the change
in minimum grade was no longer
supported by industry members and
that maintaining the current minimum
grade would allow the industry to
supply quality product and meet market
demand. The Committee agreed the
recommended change was no longer
needed, given there will be an ample
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supply of product this season. For these
reasons, the Committee voted to
withdraw its recommendation to the
Secretary to relax the minimum grade
requirements for oranges and tangerines
from a U.S. No. 1 to a U.S. No. 2. After
receiving the Committee
recommendation, USDA reviewed the
volume and shipment forecast as
projected by NASS for the 2018–19
season. Because the NASS data projects
an increase in the volume of oranges
and tangerines available for market,
USDA has determined that the proposed
change should not be finalized.
Therefore, the proposed relaxation of
the minimum grade requirements for
oranges and tangerines is withdrawn
and is not included in this final rule.
The current regulations regarding the
minimum grade requirements for
oranges and tangerines remain in effect.
During the April 26, 2018 meeting,
the Committee also discussed the
limited production of Ambersweet and
Temple oranges (also known as Royal
tangerines). In the past, the Committee
has considered removing the grade and
size requirements for varieties with
limited commercial value due to the
very limited supplies available for
shipment. Last season, Ambersweet
oranges accounted for 4,280 cartons and
Temple oranges accounted for a total of
40,227 cartons sold. Given the decline
in production, the Committee
recommended removing restrictions on
grade and size for Ambersweet and
Temple oranges to maximize remaining
shipments.
The Committee also recommended
simplifying Table I and Table II in
§ 905.306, which outline the minimum
grade and size requirements for
interstate and export shipments, to
make them better reflect current
industry requirements. Over the past
few years, the Committee has made
ongoing changes to both minimum
grade and size for a number of Florida
citrus varieties. These changes have
moved minimum grade and size
requirements toward greater
commonality for both oranges and
grapefruit.
With the minimum grade change
presented in the proposed rule, there
would have been no differences in
minimum grade and size requirements
for the various types and varieties of
oranges listed in the table. Therefore,
the Committee recommended that
‘‘Early and midseason’’ oranges be
consolidated with ‘‘Navel’’ and
‘‘Valencia and other late type’’ oranges
into one ‘‘Oranges’’ classification. These
changes will be made by making some
changes to Table I and Table II, as
without the change from a U.S. No. 1 to
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U.S. No. 2 minimum grade for oranges
there will still be some differences in
grade among orange varieties. For
grapefruit, the minimum grade and size
requirements for the two listed
categories are already the same.
‘‘Seedless, red’’ and ‘‘Seedless, except
red’’ are combined into one ‘‘Grapefruit,
seedless’’ classification.
In addition, the Committee
recommended removing the ‘‘Regulation
Period’’ column from the two tables.
Except for the dates listed in Table I for
Valencia and other late type oranges, the
various dates listed are no longer
applicable and are not reflective of the
current industry practice. As the grade
change originally proposed for oranges
will not be made, the current dates
listed for Valencia and other late type
oranges will be maintained in Table I to
recognize there are different grades
associated with different regulatory
periods. The Committee made these
recommendations to simplify the tables
to reflect changes in the industry.
Section 8e of the Act provides that
when certain domestically produced
commodities, including grapefruit, are
regulated under a Federal marketing
order, imports of that commodity must
meet the same or comparable grade,
size, quality, and maturity requirements
as those in effect for the domestic
commodity. Because this rule combines
‘‘Seedless, red’’ and ‘‘Seedless, except
red’’ into one classification for
grapefruit in the two domestic handling
regulation tables as well as removes the
‘‘Regulation Period’’ column dates from
those tables, a corresponding change to
the table in the grapefruit import
regulations is required.
Further, two minor administrative
changes will be made to § 944.106. In
§ 944.106(c), the reference to
‘‘§ 905.306’’ is revised to read
‘‘§ 905.306(a) through (d)’’ so that the
requirements specifically applicable to
imports are more clearly defined.
Additionally, § 944.106(d) is updated to
reflect the revised name of the
Agricultural Marketing Service (AMS)
program area that oversees federal
marketing orders.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), AMS has considered
the economic impact of this action on
small entities. Accordingly, AMS has
prepared this final regulatory flexibility
analysis.
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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.
There are approximately 20 handlers
of Florida citrus who are subject to
regulation under the Order and
approximately 500 citrus producers in
the regulated area. There are
approximately 50 citrus importers.
Small agricultural service firms are
defined by the Small Business
Administration (SBA) as those having
annual receipts of less than $7,500,000,
and small agricultural producers are
defined as those having annual receipts
of less than $750,000 (13 CFR 121.201).
According to data from NASS, the
industry, and the Committee, the
weighted average f.o.b. price for Florida
citrus for the 2016–17 season was
approximately $15.20 per carton with
total shipments of 12.6 million cartons.
Using the number of handlers, and
assuming a normal distribution, the
majority of handlers have average
annual receipts of more than $7,500,000
($15.20 times 12.6 million equals
$191,520,000 divided by 20 handlers
equals $9,576,000 per handler).
In addition, based on the NASS data,
the weighted average grower price for
the 2016–17 season was approximately
$8.30 per carton of citrus. Based on
grower price, shipment data, and the
total number of Florida citrus growers,
and assuming a normal distribution, the
average annual grower revenue is below
$750,000 ($8.30 times 12.6 million
cartons equals $104,580,000 divided by
500 growers equals $209,160 per
grower).
South Africa, Peru, and Mexico are
the major grapefruit-producing
countries exporting grapefruit to the
United States. In 2016, shipments of
grapefruit imported into the United
States totaled approximately 24,000
metric tons. Information from USDA’s
Foreign Agricultural Service indicates
that the dollar value of imported fresh
grapefruit was approximately $11.2
million in 2016. Using this value and
the number of importers (approximately
50), most importers would have annual
receipts of less than $7,500,000 for
grapefruit.
Based on the previously described
estimates, the majority of handlers of
Florida citrus may be classified as large
entities, while the majority of growers
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and importers may be classified as small
entities.
This final rule removes the grade and
size requirements for Ambersweet and
Temple oranges, and simplifies the
tables outlining the grade and size
requirements for interstate and export
shipments. This rule revises § 905.306.
Authority for this change is provided in
§ 905.52. This rule also changes
§ 944.106 in the grapefruit import
regulation and is required by section 8e
of the Act.
This action is not expected to increase
the costs associated with the Order’s
requirements or the grapefruit import
regulation. Rather, it is anticipated this
action will have a beneficial impact.
Removing the size requirements for
Ambersweet and Temple oranges will
help maximize shipments of these
varieties impacted by declining
production. The benefits of this rule
will also be equally available to all
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
Ambersweet and Temple oranges.
However, leaving the requirements
unchanged will not make additional
fruit available for shipment. 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 OMB and
assigned OMB No. 0581–0189, Fruit
Crops. No changes in those
requirements are necessary as a result of
this action. Should any changes become
necessary, they would be submitted to
OMB for approval.
This final rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
Florida 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. As
noted in the initial regulatory flexibility
analysis, USDA has not identified any
relevant Federal rules that duplicate,
overlap, or conflict with this rule. No
public comments were received
regarding the initial regulatory
flexibility analysis.
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.
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The Committee’s meetings were
widely publicized throughout the citrus
industry, and all interested persons
were invited to attend the meetings and
participate in Committee deliberations.
Like all Committee meetings, the April,
26, 2018, and November 15, 2018,
meetings were public meetings, and all
entities, both large and small, were able
to express their views on this issue.
A proposed rule concerning this
action was published in the Federal
Register on October 19, 2018 (83 FR
53003). Copies of the proposed rule
were sent via email to Committee
members and Florida citrus handlers.
Additionally, the rule was made
available through the internet by USDA
and the Office of the Federal Register. A
30-day comment period ending
November 19, 2018, was provided to
allow interested persons to respond to
the proposal.
During the comment period, 12
comments were received in response to
the proposal. Of the comments received,
2 were in support of the regulations as
proposed, an additional comment was
in support but requested some changes
to the proposal, 8 were opposed, and 1
took no position.
In the two comments that supported
the regulation, both stated producers
and consumers would benefit from this
action. One comment mentioned the
change would allow less product to go
to waste. The other comment mentioned
there would be no major negative effects
to the fresh market besides consumers
purchasing smaller size fruit.
The comment supporting the proposal
with changes was submitted by the
chairperson of the Citrus Administrative
Committee, and reflected the position
taken by the Committee during its
November 15, 2018, meeting. The
comment stated support for the
proposed regulations but requested that
USDA deny the request to lower the
minimum grade for Florida oranges and
Fallglo, Sunburst, and Honey tangerines
to a U.S. No. 2. The commenter stated
that the Committee’s request was based
on objections voiced from within the
Florida citrus industry. The comment
mentioned the proposal to relax the
minimum grade from a U.S. No. 1 to a
U.S. No. 2 was a result of crop damage
from Hurricane Irma. With operations
estimated to have losses of 30 to 100
percent of their crop, the proposed
change to the minimum grade
requirements was intended to make
more product available and align the
grade for Florida oranges with the
current minimum grade for Texas and
imported oranges.
The commenter added that the
Committee recommends proceeding
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with the other changes in the proposed
rule, including removal of grade and
size requirements for Ambersweet and
Temple oranges, and simplifying the
tables outlining the grade and size
requirements for interstate and export
shipments.
Of the comments received in
opposition to the regulation, all eight
opposed the proposal to relax the
minimum grade from a U.S. No. 1 to a
U.S. No. 2 for Florida oranges and
tangerines. Many of the comments
expressed concern this change would
negatively impact quality. Other
comments mentioned that a relaxation
of the minimum grade requirements is
unnecessary as the 2018–19 season
should provide an ample supply of
high-quality fruit. As mentioned above,
after receiving the Committee
recommendation and other comments,
USDA reviewed the volume and
shipment forecast as projected by NASS
for the 2018–19 season and determined
the proposal to relax the minimum
grade requirements for oranges and
tangerines should be withdrawn.
Consequently, this final rule does not
include a change to the minimum grade
requirements from a U.S. No. 1 to a U.S.
No. 2 for oranges and tangerines. The
current regulations remain unchanged.
Two comments raised concerns over
the consolidation of the grapefruit
requirements for ‘‘Seedless, red’’ and
‘‘Seedless, except red’’ into one
‘‘Grapefruit, seedless’’ classification.
Both commentators mentioned this
change could cause harm to the fresh
red grapefruit markets, and that Texas is
known for its deep red variety of fresh
grapefruit. Both comments also question
what economic problems would befall
Texas growers with the elimination of
the red grapefruit category.
For grapefruit, the grade and size
requirements for ‘‘Seedless, red’’ and
‘‘Seedless, except red’’ are already the
same. The definition for grapefruit in
the Order still includes ‘‘red grapefruit,
to include all shades of color.’’ This
final rule does not eliminate the grade
and size requirements for red seedless
grapefruit; it simply combines the two
categories into one ‘‘Grapefruit,
seedless’’ classification. The grade and
size requirements for grapefruit,
regardless of color, remains the same.
This is the case for both Florida and
imported grapefruit. Further, 7 CFR part
906, Oranges and Grapefruit Grown in
Lower Rio Grande Valley in Texas, the
marketing order for Texas citrus that is
not affected by this rulemaking,
establishes the minimum grade and size
requirements for Texas grapefruit. These
requirements do not include a separate
category for red grapefruit.
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This final rule does not eliminate the
requirements for red seedless grapefruit
or eliminate it as a variety. This final
rule provides that regardless of color,
Florida grapefruit shipped outside of the
production area must meet the grade
and size requirements established under
the Order.
A comment submitted on behalf of the
Florida Citrus Packers expressed
opposition to all the changes in the
proposed rule. The comment
acknowledged the Committee’s initial
recommendation to relax the minimum
grade requirements for oranges and
tangerines was made to align the
minimum grade for oranges with the
requirements for Texas and imports,
while making more oranges available for
specialized channels of trade. However,
after recent discussions, the
organization favors a return to the
original Order language.
As previously stated, USDA will not
move forward with the change in
minimum grade requirements for
oranges and tangerines. Concerning the
group’s opposition to the other parts of
the proposed rule, no additional
information or analysis was provided in
the comment. No AMS response is
required. With regards to eliminating
the grade and size requirements for
Ambersweet and Temple oranges,
production of these two varieties has
been declining for years and is expected
to continue to decline. Shipments are
limited and represent only a small
portion of overall fresh shipments and
are not anticipated to return to
commercial shipping levels. The
additional changes made by the rule
make no substantive change to the
requirements under the Order but does
simplify the language in the rules and
regulations, making it easier to read and
follow.
Another comment in opposition
expressed concerns about the changes
proposed to the import requirements.
Specifically, it states the proposed rule
discusses grapefruit while not
addressing orange and mandarin results,
and that the proposal provides no
analysis on what the impact would be
specific to grapefruit, orange, and/or
mandarin imports. The comment also
questions whether the proposed changes
would have an adverse effect on the
California and Texas citrus industries by
allowing offshore competitors to flood
the market with less expensive product.
Section 8e of the Act provides that
when certain domestically produced
commodities, including grapefruit, are
regulated under a Federal marketing
order, imports of that commodity must
meet the same or comparable grade,
size, quality, and maturity requirements
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16199
as those in effect for the domestically
produced commodity. As this rule
combines ‘‘Seedless, red’’ and
‘‘Seedless, except red’’ into one
classification for grapefruit in the two
domestic handling regulation tables and
removes the dates under ‘‘Regulation
Period’’ from those tables, a
corresponding change to the table in the
grapefruit import regulations is required
by section 8e. In addition, two minor
administrative changes will be made to
§ 944.106, revising it to make the
requirements specifically applicable to
imports are more clearly defined and to
update the name of the AMS program
area that oversees federal marketing
orders.
The Secretary has determined
grapefruit imported into the United
States are in most direct competition
with grapefruit grown in Florida
regulated under marketing order 905,
and oranges imported into United States
are in most direct competition with
oranges grown in Texas regulated in
marketing order 906. Accordingly, the
import requirements for grapefruit
reflect the requirements in marketing
order 905 and the import requirements
for oranges reflect the requirements
under marketing order 906. Section 8e
does not list tangerines or mandarins as
a commodity subject to its requirements.
Thus, there are currently no import
requirements for tangerines or
mandarins specified in the import
regulations.
The rule only reflects changes to the
grapefruit import regulation, as it is the
only import regulation impacted by this
change. The changes to the
requirements for oranges and tangerines
considered under this regulation only
impact fruit produced in the Florida
citrus production area.
Regarding the impact of the final rule
on the grapefruit import requirements,
this rule adjusts the appearance of the
table in the import regulation and makes
two minor administrative adjustments.
These changes do not impact the
substantive requirements applied to
imported grapefruit. Further, as the rule
only makes changes to the grapefruit
import requirements, no analysis of the
rule’s impact on oranges and tangerine
imports is warranted.
In response to the concerns raised
about whether the changes would have
an adverse effect on the California and
Texas citrus industries by allowing
offshore competitors to flood the market
with less expensive product, this rule
does not make changes to the grade and
size requirements applied to imported
grapefruit. Further, the minimum grade
requirements for imported oranges
reflect the minimum grade established
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Federal Register / Vol. 84, No. 75 / Thursday, April 18, 2019 / Rules and Regulations
under the Texas citrus marketing order
906, which is currently a U.S. No. 2 for
both Texas and imported oranges.
Consequently, this rule makes no
substantive change to the grade and size
requirements for imported grapefruit,
and no change to the import
requirements for oranges. Therefore, the
changes outlined in this rule should not
have substantive impact on the volume
of citrus imported into the United
States.
One last commenter took no position
on the rule, but rather questioned
whether this change would create a
lower standard for Ambersweet and
Temple oranges. This rule creates a
lower standard by removing the grade
and size requirements for both varieties.
For the reasons discussed above,
USDA will not move forward with the
reduction in minimum grade
requirements for oranges and tangerines.
With regards to the other provisions of
the proposed rule, no changes will be
made to the rule as proposed, based on
the comments received.
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/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Richard Lower
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
In accordance with section 8e of the
Act, the United States Trade
Representative has concurred with the
issuance of this rule.
After consideration of all relevant
matter presented, including the
information and recommendation of the
Committee and other available
information, it is hereby found that this
rule, as hereinafter set forth, will tend
to effectuate the declared policy of the
Act.
PART 905—ORANGES, GRAPEFRUIT,
TANGERINES, AND PUMMELOS
GROWN IN FLORIDA
1. The authority citation for part 905
continues to read as follows:
■
Authority: 7 U.S.C. 601–604.
2. In § 905.306, paragraph (a), Table I
in paragraph (a), paragraph (b), and
Table II in paragraph (b) are revised to
read as follows:
■
§ 905.306 Orange, Grapefruit, Tangerine
and Tangelo Regulation.
(a) No handler shall ship between the
production area and any point outside
thereof, in the 48 contiguous States and
the District of Columbia of the United
States, any variety of fruit listed in
column (1) of Table I, except for
Ambersweet and Temple, unless such
variety meets the applicable minimum
grade and size (with tolerances for size
as specified in paragraph (c) of this
section) specified for such variety in
columns (2) and (3) of Table I: Provided,
That all grapefruit meet the minimum
maturity requirements specified in
paragraph (e) of this section.
List of Subjects
7 CFR Part 905
Grapefruit, Marketing agreements,
Oranges, Pummelos, Reporting and
recordkeeping requirements, Tangelos,
Tangerines.
7 CFR Part 944
Avocados, Food grades and standards,
Grapefruit, Grapes, Imports, Kiwifruit,
Limes, Olives, Oranges.
For the reasons set forth in the
preamble, parts 905 and 944 are
amended as follows:
TABLE I
Variety
Regulation period
Minimum grade
Minimum
diameter
(inches)
(1)
(2)
(3)
(4)
Oranges
Early and midseason ................................
Navel .................................................
Valencia and other late type .............
Grapefruit, Seedless .................................
Tangerines:
Fallglo ................................................
Honey ................................................
Sunburst ............................................
Tangelos ...................................................
(b) No handler shall ship to any
destination outside the 48 contiguous
States and the District of Columbia of
the United States any variety of fruit
listed in column (1) of Table II, except
.................................................................
.................................................................
September 1–May 14 .............................
May 15–June 14 .....................................
June 15–August 31 .................................
.................................................................
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
No.
No.
No.
No.
No.
No.
1 ...............................................
1 ...............................................
1 ...............................................
1 Golden ..................................
2, External/U.S. No. 1, Internal
1 ...............................................
24⁄16
24⁄16
24⁄16
24⁄16
24⁄16
3
.................................................................
.................................................................
.................................................................
.................................................................
U.S. No. 1 ...............................................
Florida No. 1 ...........................................
U.S. No. 1 ...............................................
U.S. No. 1 ...............................................
26⁄16
26⁄16
26⁄16
28⁄16
for Ambersweet and Temple, unless
such variety meets the applicable
minimum grade and size (with
tolerances for size as specified in
paragraph (c) of this section) specified
for such variety in columns (2) and (3)
of Table II: Provided, That all grapefruit
meet the minimum maturity
requirements specified in paragraph (e)
of this section.
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TABLE II
Variety
Minimum grade
Minimum
diameter
(inches)
(1)
(2)
(3)
Oranges ......................................................................................
Navels .........................................................................................
U.S. No. 1 ..................................................................................
U.S. No. 1 Golden .....................................................................
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Federal Register / Vol. 84, No. 75 / Thursday, April 18, 2019 / Rules and Regulations
16201
TABLE II—Continued
Variety
Minimum grade
Minimum
diameter
(inches)
(1)
(2)
(3)
Grapefruit, Seedless ...................................................................
Tangerines:
Fallglo ..................................................................................
Honey ...................................................................................
Sunburst ...............................................................................
Tangelos .....................................................................................
U.S. No. 1 ..................................................................................
*
*
*
*
..................................................................................
1 ..............................................................................
..................................................................................
..................................................................................
Authority: 7 U.S.C. 601–674.
*
§ 944.106
4. In § 944.106, revise the table in
paragraph (a), paragraph (c), and the
first sentence in paragraph (d) to read as
follows:
■
PART 944—FRUITS; IMPORT
REGULATIONS
3. The authority citation for part 944
continues to read as follows:
■
26⁄16
26⁄16
26⁄16
28⁄16
Grapefruit import regulation.
(a) * * *
Grapefruit classification
Minimum grade
Minimum
diameter
(inches)
(1)
(2)
(3)
Grapefruit, seedless ....................................................................
U.S. No. 1 ..................................................................................
*
*
*
*
*
(c) Terms and tolerances pertaining to
grade and size requirements, which are
defined in the United States Standards
for Grades of Florida Grapefruit (7 CFR
51.750–51.784), and in Marketing Order
No. 905 (7 CFR 905.18 and 905.306(a)
through (d)), shall be applicable herein.
(d) The Federal or Federal-State
Inspection Service, Specialty Crops
Program, Agricultural Marketing
Service, United States Department of
Agriculture, is designated as the
governmental inspection service for
certifying the grade, size, quality, and
maturity of grapefruit imported into the
United States. * * *
*
*
*
*
*
Dated: April 12, 2019.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2019–07801 Filed 4–17–19; 8:45 am]
BILLING CODE 3410–02–P
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Florida No.
U.S. No. 1
U.S. No. 1
3
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10 CFR Part 72
[NRC–2019–0030]
RIN 3150–AK28
List of Approved Spent Fuel Storage
Casks: Holtec International HI–STORM
100 Cask System, Certificate of
Compliance No. 1014, Amendment No.
13
Nuclear Regulatory
Commission.
ACTION: Direct final rule; confirmation of
effective date.
AGENCY:
The U.S. Nuclear Regulatory
Commission (NRC) is confirming the
effective date of May 13, 2019, for the
direct final rule that was published in
the Federal Register on February 26,
2019. The direct final rule amended the
NRC’s spent fuel storage regulations by
revising the Holtec International HI–
STORM 100 Cask System listing within
the ‘‘List of approved spent fuel storage
casks’’ to include Amendment No. 13 to
Certificate of Compliance No. 1014.
Amendment No. 13 revises Appendix B
of the technical specifications to update
the initial uranium weight for the
16x16B and 16x16C assembly classes to
match the value for 16x16A.
SUMMARY:
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Effective date: The effective date
of May 13, 2019, for the direct final rule
published February 26, 2019 (84 FR
6055), is confirmed.
ADDRESSES: Please refer to Docket ID
NRC–2019–0030 when contacting the
NRC about the availability of
information for this action. You may
obtain publicly-available information
related to this action by any of the
following methods:
• Federal Rulemaking Website: Go to
https://www.regulations.gov and search
for Docket ID NRC–2019–0030. Address
questions about NRC dockets to Carol
Gallagher; telephone: 301–415–3463;
email: Carol.Gallagher@nrc.gov. For
technical questions, contact the
individuals listed in the FOR FURTHER
INFORMATION CONTACT section of this
document.
• NRC’s Agencywide Documents
Access and Management System
(ADAMS): You may obtain publiclyavailable documents online in the
ADAMS Public Documents collection at
https://www.nrc.gov/reading-rm/
adams.html. To begin the search, select
‘‘Begin Web-based ADAMS Search.’’ For
problems with ADAMS, please contact
the NRC’s Public Document Room (PDR)
reference staff at 1–800–397–4209, 301–
415–4737, or by email to pdr.resource@
nrc.gov. The proposed amendment to
the certificate, the proposed changes to
the technical specifications, and the
DATES:
NUCLEAR REGULATORY
COMMISSION
3
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]]>Agencies
[Federal Register Volume 84, Number 75 (Thursday, April 18, 2019)]
[Rules and Regulations]
[Pages 16195-16201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07801]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 905 and 944
[Doc. AMS-SC-18-0046; SC18-905-3 FR]
Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida
and Imported Grapefruit; Change in Grade and Size Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements a recommendation from the Citrus
Administrative Committee (Committee) to revise the grade and size
requirements currently prescribed under the marketing order for
oranges, grapefruit, tangerines, and pummelos grown in Florida. This
rule removes the grade and size requirements for Ambersweet and Temple
oranges, and simplifies the tables outlining the grade and size
requirements for interstate and export shipments. A corresponding
change will be made to the grapefruit import regulation as required
under section 8e of the Agricultural Marketing Agreement Act of 1937.
[[Page 16196]]
DATES: Effective May 20, 2019.
FOR FURTHER INFORMATION CONTACT: Abigail Campos, Marketing Specialist,
or Christian D. Nissen, Regional Director, Southeast Marketing Field
Office, Marketing Order and Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or
Email: [email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Marketing Order and Agreement
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491,
Fax: (202) 720-8938, or Email: [email protected].
SUPPLEMENTARY INFORMATION: This final rule, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This final rule is issued under Marketing Order No.
905, as amended (7 CFR part 905), regulating the handling of oranges,
grapefruit, tangerines, and pummelos grown in Florida. Part 905
(referred to as the ``Order'') is effective under the Agricultural
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674),
hereinafter referred to as the ``Act.'' The Committee locally
administers the Order and is comprised of producers and handlers of
citrus operating within the area of production, and a public member.
This rule is also issued under section 8e of the Act, which
provides that whenever certain specified commodities, including
grapefruit, 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 final rule in
conformance with Executive Orders 13563 and 13175. This action falls
within a category of regulatory actions that the Office of Management
and Budget (OMB) exempted from Executive Order 12866 review.
Additionally, because this final rule does not meet the definition of a
significant regulatory action, it does not trigger the requirements
contained in Executive Order 13771. See OMB's Memorandum titled
``Interim Guidance Implementing Section 2 of the Executive Order of
January 30, 2017, titled `Reducing Regulation and Controlling
Regulatory Costs'[thinsp]'' (February 2, 2017).
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 that must be exhausted prior
to any judicial challenge to the provisions of import regulations
issued under section 8e of the Act.
This final rule revises the grade and size requirements under the
Order. This action removes the grade and size requirements for
Ambersweet and Temple oranges, and simplifies the tables outlining the
grade and size requirements for interstate and export shipments. These
changes were unanimously recommended by the Committee on April 26,
2018. In addition to these changes, the Committee also recommended
relaxing the minimum grade requirements for oranges and Fall-glo,
Sunburst, and Honey tangerines from U.S. No. 1 to U.S. No. 2.
On November 15, 2018, the Committee met again and revisited the
recommendation to relax the minimum grade requirements for oranges and
tangerines. The Committee voted to withdraw their recommendation to
relax the minimum grade requirements for oranges and tangerines from a
U.S. No.1 to a U.S. No. 2, recommending that USDA consider maintaining
the current minimum grade requirements for oranges and tangerines.
After receiving the Committee recommendation, USDA reviewed volume and
shipment projected by National Agricultural Statistical Service (NASS)
for the 2018-19 season and determined the final rule should be revised
to reflect a withdrawal of the original proposal. Consequently, this
final rule does not include the proposed change to the minimum grade
requirements for oranges and tangerines from a U.S. No. 1 to a U.S. No.
2.
Section 905.52 provides authority to establish minimum grade
requirements for Florida citrus. Section 905.306 specifies, in part,
the minimum grade requirements for citrus. Requirements for domestic
shipments are specified in Sec. 905.306 in Table I of paragraph (a)
and for export shipments in Table II of paragraph (b). Minimum grade
and size requirements for grapefruit imported into the United States
are currently in effect pursuant to Sec. 944.106 (7 CFR 944.106).
The Committee met on April 26, 2018, and discussed ways to provide
additional supplies of Florida citrus to the marketplace and increase
grower and handler returns. Committee members recognized that with the
ongoing impacts of citrus greening, some adjustments should be made to
assist growers and handlers and provide for the utilization of
additional volume of Florida citrus in the fresh market.
Citrus greening has caused the steady decline in Florida citrus
production and has spread to all citrus producing counties in Florida.
From the 2011-12 to the 2016-17 season, citrus greening has reduced
Florida's orange production by 53 percent and tangerine production by
67 percent. During the same period, fresh shipments have declined by 54
percent for oranges and 80 percent for tangerines.
The industry suffered additional production losses as a result of
damage from Hurricane Irma in September 2017. According to USDA's
National Agricultural Statistics Service (NASS), production for the
2016-17 season totaled 68.8 million boxes for oranges and 1.6 million
boxes for tangerines. For the 2017-18 season, the forecasted production
was expected to decrease by 34 percent for oranges and 53 percent for
tangerines. Also, the citrus trees may take several seasons to recover
from the hurricane damage, further impacting production and supply.
Given the decrease in production, the Committee recommended
relaxing the minimum grade requirements for oranges and Fallglo,
Sunburst, and Honey tangerines from U.S. No. 1 to U.S. No. 2. During
the discussion of this change, one Committee member stated the
reduction in grade could help address the limited volumes of fruit
available in the market. It was also stated that there was a good fresh
juice market for the U.S. No. 2 orange and that this change could help
promote the sale of more oranges for the fresh juice market.
[[Page 16197]]
For tangerines, it was stated that the very limited volumes of
tangerines being produced in Florida was causing a supply concern for
shippers. Members agreed lowering the grade for tangerines would
promote increased shipments.
The Committee had agreed relaxing the grade from a U.S. No. 1 to a
U.S. No. 2 for oranges and Fallglo, Sunburst, Honey tangerines would
allow growers and handlers to utilize a greater percentage of the crop
and would make more fruit available for shipment. By implementing this
change, more fruit would meet grade requirements, and the industry
would be able to put an additional 300,000 cartons or more into the
fresh market, helping to maximize shipments and to increase grower and
handler return.
The Committee met again on November 15, 2018, and revisited the
recommendation to relax the minimum grade requirements for oranges and
tangerines. During their discussion, members raised their concerns
about its initial recommendation. In April 2018, the Committee made its
recommendation given the decline in volume due to citrus greening and
Hurricane Irma. Some members stated the recommendation to reduce the
grade from a U.S. No. 1 to U.S. No. 2 was based on the projected
numbers provided. At the time, the forecasted production for the 2017-
18 season was expected to decline by 34 percent for oranges and 53
percent for tangerines and there were questions about how much the
production for the 2018-19 season would recover.
The production estimates for the 2018-19 season were issued prior
to the Committee's November meeting. Those estimates show production
for the 2018-19 season are up considerably from 2017-18 production.
According to NASS, the forecasted production for the 2018-19 season is
77 million boxes of oranges, 1.2 million boxes of tangerines, and 6.4
million boxes of grapefruit. Production for 2017-18 was just 44.95
million boxes for oranges, 750,000 boxes of tangerines, and 3.8 million
boxes of grapefruit. Compared to the 2017-18 production, the 2018-19
season will provide an increase in production of 71 percent for
oranges, 61 percent for tangerines, and 68 percent for grapefruit.
Committee members stated the change in minimum grade was no longer
supported by industry members and that maintaining the current minimum
grade would allow the industry to supply quality product and meet
market demand. The Committee agreed the recommended change was no
longer needed, given there will be an ample supply of product this
season. For these reasons, the Committee voted to withdraw its
recommendation to the Secretary to relax the minimum grade requirements
for oranges and tangerines from a U.S. No. 1 to a U.S. No. 2. After
receiving the Committee recommendation, USDA reviewed the volume and
shipment forecast as projected by NASS for the 2018-19 season. Because
the NASS data projects an increase in the volume of oranges and
tangerines available for market, USDA has determined that the proposed
change should not be finalized. Therefore, the proposed relaxation of
the minimum grade requirements for oranges and tangerines is withdrawn
and is not included in this final rule. The current regulations
regarding the minimum grade requirements for oranges and tangerines
remain in effect.
During the April 26, 2018 meeting, the Committee also discussed the
limited production of Ambersweet and Temple oranges (also known as
Royal tangerines). In the past, the Committee has considered removing
the grade and size requirements for varieties with limited commercial
value due to the very limited supplies available for shipment. Last
season, Ambersweet oranges accounted for 4,280 cartons and Temple
oranges accounted for a total of 40,227 cartons sold. Given the decline
in production, the Committee recommended removing restrictions on grade
and size for Ambersweet and Temple oranges to maximize remaining
shipments.
The Committee also recommended simplifying Table I and Table II in
Sec. 905.306, which outline the minimum grade and size requirements
for interstate and export shipments, to make them better reflect
current industry requirements. Over the past few years, the Committee
has made ongoing changes to both minimum grade and size for a number of
Florida citrus varieties. These changes have moved minimum grade and
size requirements toward greater commonality for both oranges and
grapefruit.
With the minimum grade change presented in the proposed rule, there
would have been no differences in minimum grade and size requirements
for the various types and varieties of oranges listed in the table.
Therefore, the Committee recommended that ``Early and midseason''
oranges be consolidated with ``Navel'' and ``Valencia and other late
type'' oranges into one ``Oranges'' classification. These changes will
be made by making some changes to Table I and Table II, as without the
change from a U.S. No. 1 to U.S. No. 2 minimum grade for oranges there
will still be some differences in grade among orange varieties. For
grapefruit, the minimum grade and size requirements for the two listed
categories are already the same. ``Seedless, red'' and ``Seedless,
except red'' are combined into one ``Grapefruit, seedless''
classification.
In addition, the Committee recommended removing the ``Regulation
Period'' column from the two tables. Except for the dates listed in
Table I for Valencia and other late type oranges, the various dates
listed are no longer applicable and are not reflective of the current
industry practice. As the grade change originally proposed for oranges
will not be made, the current dates listed for Valencia and other late
type oranges will be maintained in Table I to recognize there are
different grades associated with different regulatory periods. The
Committee made these recommendations to simplify the tables to reflect
changes in the industry.
Section 8e of the Act provides that when certain domestically
produced commodities, including grapefruit, are regulated under a
Federal marketing order, imports of that commodity must meet the same
or comparable grade, size, quality, and maturity requirements as those
in effect for the domestic commodity. Because this rule combines
``Seedless, red'' and ``Seedless, except red'' into one classification
for grapefruit in the two domestic handling regulation tables as well
as removes the ``Regulation Period'' column dates from those tables, a
corresponding change to the table in the grapefruit import regulations
is required.
Further, two minor administrative changes will be made to Sec.
944.106. In Sec. 944.106(c), the reference to ``Sec. 905.306'' is
revised to read ``Sec. 905.306(a) through (d)'' so that the
requirements specifically applicable to imports are more clearly
defined. Additionally, Sec. 944.106(d) is updated to reflect the
revised name of the Agricultural Marketing Service (AMS) program area
that oversees federal marketing orders.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this action on small entities. Accordingly, AMS has prepared this final
regulatory flexibility analysis.
[[Page 16198]]
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.
There are approximately 20 handlers of Florida citrus who are
subject to regulation under the Order and approximately 500 citrus
producers in the regulated area. There are approximately 50 citrus
importers. Small agricultural service firms are defined by the Small
Business Administration (SBA) as those having annual receipts of less
than $7,500,000, and small agricultural producers are defined as those
having annual receipts of less than $750,000 (13 CFR 121.201).
According to data from NASS, the industry, and the Committee, the
weighted average f.o.b. price for Florida citrus for the 2016-17 season
was approximately $15.20 per carton with total shipments of 12.6
million cartons. Using the number of handlers, and assuming a normal
distribution, the majority of handlers have average annual receipts of
more than $7,500,000 ($15.20 times 12.6 million equals $191,520,000
divided by 20 handlers equals $9,576,000 per handler).
In addition, based on the NASS data, the weighted average grower
price for the 2016-17 season was approximately $8.30 per carton of
citrus. Based on grower price, shipment data, and the total number of
Florida citrus growers, and assuming a normal distribution, the average
annual grower revenue is below $750,000 ($8.30 times 12.6 million
cartons equals $104,580,000 divided by 500 growers equals $209,160 per
grower).
South Africa, Peru, and Mexico are the major grapefruit-producing
countries exporting grapefruit to the United States. In 2016, shipments
of grapefruit imported into the United States totaled approximately
24,000 metric tons. Information from USDA's Foreign Agricultural
Service indicates that the dollar value of imported fresh grapefruit
was approximately $11.2 million in 2016. Using this value and the
number of importers (approximately 50), most importers would have
annual receipts of less than $7,500,000 for grapefruit.
Based on the previously described estimates, the majority of
handlers of Florida citrus may be classified as large entities, while
the majority of growers and importers may be classified as small
entities.
This final rule removes the grade and size requirements for
Ambersweet and Temple oranges, and simplifies the tables outlining the
grade and size requirements for interstate and export shipments. This
rule revises Sec. 905.306. Authority for this change is provided in
Sec. 905.52. This rule also changes Sec. 944.106 in the grapefruit
import regulation and is required by section 8e of the Act.
This action is not expected to increase the costs associated with
the Order's requirements or the grapefruit import regulation. Rather,
it is anticipated this action will have a beneficial impact. Removing
the size requirements for Ambersweet and Temple oranges will help
maximize shipments of these varieties impacted by declining production.
The benefits of this rule will also be equally available to all
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 Ambersweet and Temple
oranges. However, leaving the requirements unchanged will not make
additional fruit available for shipment. 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 OMB and assigned OMB No. 0581-0189, Fruit Crops.
No changes in those requirements are necessary as a result of this
action. Should any changes become necessary, they would be submitted to
OMB for approval.
This final rule will not impose any additional reporting or
recordkeeping requirements on either small or large Florida 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. As noted in the
initial regulatory flexibility analysis, USDA has not identified any
relevant Federal rules that duplicate, overlap, or conflict with this
rule. No public comments were received regarding the initial regulatory
flexibility analysis.
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.
The Committee's meetings were widely publicized throughout the
citrus industry, and all interested persons were invited to attend the
meetings and participate in Committee deliberations. Like all Committee
meetings, the April, 26, 2018, and November 15, 2018, meetings were
public meetings, and all entities, both large and small, were able to
express their views on this issue.
A proposed rule concerning this action was published in the Federal
Register on October 19, 2018 (83 FR 53003). Copies of the proposed rule
were sent via email to Committee members and Florida citrus handlers.
Additionally, the rule was made available through the internet by USDA
and the Office of the Federal Register. A 30-day comment period ending
November 19, 2018, was provided to allow interested persons to respond
to the proposal.
During the comment period, 12 comments were received in response to
the proposal. Of the comments received, 2 were in support of the
regulations as proposed, an additional comment was in support but
requested some changes to the proposal, 8 were opposed, and 1 took no
position.
In the two comments that supported the regulation, both stated
producers and consumers would benefit from this action. One comment
mentioned the change would allow less product to go to waste. The other
comment mentioned there would be no major negative effects to the fresh
market besides consumers purchasing smaller size fruit.
The comment supporting the proposal with changes was submitted by
the chairperson of the Citrus Administrative Committee, and reflected
the position taken by the Committee during its November 15, 2018,
meeting. The comment stated support for the proposed regulations but
requested that USDA deny the request to lower the minimum grade for
Florida oranges and Fallglo, Sunburst, and Honey tangerines to a U.S.
No. 2. The commenter stated that the Committee's request was based on
objections voiced from within the Florida citrus industry. The comment
mentioned the proposal to relax the minimum grade from a U.S. No. 1 to
a U.S. No. 2 was a result of crop damage from Hurricane Irma. With
operations estimated to have losses of 30 to 100 percent of their crop,
the proposed change to the minimum grade requirements was intended to
make more product available and align the grade for Florida oranges
with the current minimum grade for Texas and imported oranges.
The commenter added that the Committee recommends proceeding
[[Page 16199]]
with the other changes in the proposed rule, including removal of grade
and size requirements for Ambersweet and Temple oranges, and
simplifying the tables outlining the grade and size requirements for
interstate and export shipments.
Of the comments received in opposition to the regulation, all eight
opposed the proposal to relax the minimum grade from a U.S. No. 1 to a
U.S. No. 2 for Florida oranges and tangerines. Many of the comments
expressed concern this change would negatively impact quality. Other
comments mentioned that a relaxation of the minimum grade requirements
is unnecessary as the 2018-19 season should provide an ample supply of
high-quality fruit. As mentioned above, after receiving the Committee
recommendation and other comments, USDA reviewed the volume and
shipment forecast as projected by NASS for the 2018-19 season and
determined the proposal to relax the minimum grade requirements for
oranges and tangerines should be withdrawn. Consequently, this final
rule does not include a change to the minimum grade requirements from a
U.S. No. 1 to a U.S. No. 2 for oranges and tangerines. The current
regulations remain unchanged.
Two comments raised concerns over the consolidation of the
grapefruit requirements for ``Seedless, red'' and ``Seedless, except
red'' into one ``Grapefruit, seedless'' classification. Both
commentators mentioned this change could cause harm to the fresh red
grapefruit markets, and that Texas is known for its deep red variety of
fresh grapefruit. Both comments also question what economic problems
would befall Texas growers with the elimination of the red grapefruit
category.
For grapefruit, the grade and size requirements for ``Seedless,
red'' and ``Seedless, except red'' are already the same. The definition
for grapefruit in the Order still includes ``red grapefruit, to include
all shades of color.'' This final rule does not eliminate the grade and
size requirements for red seedless grapefruit; it simply combines the
two categories into one ``Grapefruit, seedless'' classification. The
grade and size requirements for grapefruit, regardless of color,
remains the same. This is the case for both Florida and imported
grapefruit. Further, 7 CFR part 906, Oranges and Grapefruit Grown in
Lower Rio Grande Valley in Texas, the marketing order for Texas citrus
that is not affected by this rulemaking, establishes the minimum grade
and size requirements for Texas grapefruit. These requirements do not
include a separate category for red grapefruit.
This final rule does not eliminate the requirements for red
seedless grapefruit or eliminate it as a variety. This final rule
provides that regardless of color, Florida grapefruit shipped outside
of the production area must meet the grade and size requirements
established under the Order.
A comment submitted on behalf of the Florida Citrus Packers
expressed opposition to all the changes in the proposed rule. The
comment acknowledged the Committee's initial recommendation to relax
the minimum grade requirements for oranges and tangerines was made to
align the minimum grade for oranges with the requirements for Texas and
imports, while making more oranges available for specialized channels
of trade. However, after recent discussions, the organization favors a
return to the original Order language.
As previously stated, USDA will not move forward with the change in
minimum grade requirements for oranges and tangerines. Concerning the
group's opposition to the other parts of the proposed rule, no
additional information or analysis was provided in the comment. No AMS
response is required. With regards to eliminating the grade and size
requirements for Ambersweet and Temple oranges, production of these two
varieties has been declining for years and is expected to continue to
decline. Shipments are limited and represent only a small portion of
overall fresh shipments and are not anticipated to return to commercial
shipping levels. The additional changes made by the rule make no
substantive change to the requirements under the Order but does
simplify the language in the rules and regulations, making it easier to
read and follow.
Another comment in opposition expressed concerns about the changes
proposed to the import requirements. Specifically, it states the
proposed rule discusses grapefruit while not addressing orange and
mandarin results, and that the proposal provides no analysis on what
the impact would be specific to grapefruit, orange, and/or mandarin
imports. The comment also questions whether the proposed changes would
have an adverse effect on the California and Texas citrus industries by
allowing offshore competitors to flood the market with less expensive
product.
Section 8e of the Act provides that when certain domestically
produced commodities, including grapefruit, are regulated under a
Federal marketing order, imports of that commodity must meet the same
or comparable grade, size, quality, and maturity requirements as those
in effect for the domestically produced commodity. As this rule
combines ``Seedless, red'' and ``Seedless, except red'' into one
classification for grapefruit in the two domestic handling regulation
tables and removes the dates under ``Regulation Period'' from those
tables, a corresponding change to the table in the grapefruit import
regulations is required by section 8e. In addition, two minor
administrative changes will be made to Sec. 944.106, revising it to
make the requirements specifically applicable to imports are more
clearly defined and to update the name of the AMS program area that
oversees federal marketing orders.
The Secretary has determined grapefruit imported into the United
States are in most direct competition with grapefruit grown in Florida
regulated under marketing order 905, and oranges imported into United
States are in most direct competition with oranges grown in Texas
regulated in marketing order 906. Accordingly, the import requirements
for grapefruit reflect the requirements in marketing order 905 and the
import requirements for oranges reflect the requirements under
marketing order 906. Section 8e does not list tangerines or mandarins
as a commodity subject to its requirements. Thus, there are currently
no import requirements for tangerines or mandarins specified in the
import regulations.
The rule only reflects changes to the grapefruit import regulation,
as it is the only import regulation impacted by this change. The
changes to the requirements for oranges and tangerines considered under
this regulation only impact fruit produced in the Florida citrus
production area.
Regarding the impact of the final rule on the grapefruit import
requirements, this rule adjusts the appearance of the table in the
import regulation and makes two minor administrative adjustments. These
changes do not impact the substantive requirements applied to imported
grapefruit. Further, as the rule only makes changes to the grapefruit
import requirements, no analysis of the rule's impact on oranges and
tangerine imports is warranted.
In response to the concerns raised about whether the changes would
have an adverse effect on the California and Texas citrus industries by
allowing offshore competitors to flood the market with less expensive
product, this rule does not make changes to the grade and size
requirements applied to imported grapefruit. Further, the minimum grade
requirements for imported oranges reflect the minimum grade established
[[Page 16200]]
under the Texas citrus marketing order 906, which is currently a U.S.
No. 2 for both Texas and imported oranges. Consequently, this rule
makes no substantive change to the grade and size requirements for
imported grapefruit, and no change to the import requirements for
oranges. Therefore, the changes outlined in this rule should not have
substantive impact on the volume of citrus imported into the United
States.
One last commenter took no position on the rule, but rather
questioned whether this change would create a lower standard for
Ambersweet and Temple oranges. This rule creates a lower standard by
removing the grade and size requirements for both varieties.
For the reasons discussed above, USDA will not move forward with
the reduction in minimum grade requirements for oranges and tangerines.
With regards to the other provisions of the proposed rule, no changes
will be made to the rule as proposed, based on the comments received.
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/rules-regulations/moa/small-businesses. Any questions
about the compliance guide should be sent to Richard Lower at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this rule.
After consideration of all relevant matter presented, including the
information and recommendation of the Committee and other available
information, it is hereby found that this rule, as hereinafter set
forth, will tend to effectuate the declared policy of the Act.
List of Subjects
7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Pummelos, Reporting and
recordkeeping requirements, Tangelos, Tangerines.
7 CFR Part 944
Avocados, Food grades and standards, Grapefruit, Grapes, Imports,
Kiwifruit, Limes, Olives, Oranges.
For the reasons set forth in the preamble, parts 905 and 944 are
amended as follows:
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND PUMMELOS GROWN IN
FLORIDA
0
1. The authority citation for part 905 continues to read as follows:
Authority: 7 U.S.C. 601-604.
0
2. In Sec. 905.306, paragraph (a), Table I in paragraph (a), paragraph
(b), and Table II in paragraph (b) are revised to read as follows:
Sec. 905.306 Orange, Grapefruit, Tangerine and Tangelo Regulation.
(a) No handler shall ship between the production area and any point
outside thereof, in the 48 contiguous States and the District of
Columbia of the United States, any variety of fruit listed in column
(1) of Table I, except for Ambersweet and Temple, unless such variety
meets the applicable minimum grade and size (with tolerances for size
as specified in paragraph (c) of this section) specified for such
variety in columns (2) and (3) of Table I: Provided, That all
grapefruit meet the minimum maturity requirements specified in
paragraph (e) of this section.
Table I
----------------------------------------------------------------------------------------------------------------
Minimum
Variety Regulation period Minimum grade diameter
(inches)
(1) (2)......................... (3)......................... (4)
----------------------------------------------------------------------------------------------------------------
Oranges
----------------------------------------------------------------------------------------------------------------
Early and midseason................. ............................ U.S. No. 1.................. 2\4/16\
Navel........................... ............................ U.S. No. 1.................. 2\4/16\
Valencia and other late type.... September 1-May 14.......... U.S. No. 1.................. 2\4/16\
May 15-June 14.............. U.S. No. 1 Golden........... 2\4/16\
June 15-August 31........... U.S. No. 2, External/U.S. 2\4/16\
No. 1, Internal.
Grapefruit, Seedless................ ............................ U.S. No. 1.................. 3
Tangerines:
Fallglo......................... ............................ U.S. No. 1.................. 2\6/16\
Honey........................... ............................ Florida No. 1............... 2\6/16\
Sunburst........................ ............................ U.S. No. 1.................. 2\6/16\
Tangelos............................ ............................ U.S. No. 1.................. 2\8/16\
----------------------------------------------------------------------------------------------------------------
(b) No handler shall ship to any destination outside the 48
contiguous States and the District of Columbia of the United States any
variety of fruit listed in column (1) of Table II, except for
Ambersweet and Temple, unless such variety meets the applicable minimum
grade and size (with tolerances for size as specified in paragraph (c)
of this section) specified for such variety in columns (2) and (3) of
Table II: Provided, That all grapefruit meet the minimum maturity
requirements specified in paragraph (e) of this section.
Table II
------------------------------------------------------------------------
Minimum
Variety Minimum grade diameter
(inches)
(1) (2).................... (3)
------------------------------------------------------------------------
Oranges........................ U.S. No. 1............. 2\4/16\
Navels......................... U.S. No. 1 Golden...... 2\4/16\
[[Page 16201]]
Grapefruit, Seedless........... U.S. No. 1............. 3
Tangerines:
Fallglo.................... U.S. No. 1............. 2\6/16\
Honey...................... Florida No. 1.......... 2\6/16\
Sunburst................... U.S. No. 1............. 2\6/16\
Tangelos....................... U.S. No. 1............. 2\8/16\
------------------------------------------------------------------------
* * * * *
PART 944--FRUITS; IMPORT REGULATIONS
0
3. The authority citation for part 944 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
4. In Sec. 944.106, revise the table in paragraph (a), paragraph (c),
and the first sentence in paragraph (d) to read as follows:
Sec. 944.106 Grapefruit import regulation.
(a) * * *
------------------------------------------------------------------------
Minimum
Grapefruit classification Minimum grade diameter
(inches)
(1) (2).................... (3)
------------------------------------------------------------------------
Grapefruit, seedless........... U.S. No. 1............. 3
------------------------------------------------------------------------
* * * * *
(c) Terms and tolerances pertaining to grade and size requirements,
which are defined in the United States Standards for Grades of Florida
Grapefruit (7 CFR 51.750-51.784), and in Marketing Order No. 905 (7 CFR
905.18 and 905.306(a) through (d)), shall be applicable herein.
(d) The Federal or Federal-State Inspection Service, Specialty
Crops Program, Agricultural Marketing Service, United States Department
of Agriculture, is designated as the governmental inspection service
for certifying the grade, size, quality, and maturity of grapefruit
imported into the United States. * * *
* * * * *
Dated: April 12, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2019-07801 Filed 4-17-19; 8:45 am]
BILLING CODE 3410-02-P
