[Federal Register Volume 75, Number 238 (Monday, December 13, 2010)]
[Proposed Rules]
[Pages 77561-77563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-31197]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 75, No. 238 / Monday, December 13, 2010 /
Proposed Rules
[[Page 77561]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 35
[Doc. No. AMS-FV-10-0091; FV11-35-1 PR]
Regulations Issued Under the Export Grape and Plum Act; Revision
to the Minimum Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This rule invites comments on proposed revisions to the
requirements under the Export Grape and Plum Act. The proposed action
would change the minimum bunch weight requirement for grapes exported
to Japan, Europe, and Greenland from one-half pound to one-quarter
pound. This rule would also update the list of European countries
defined in the regulation and remove the additional 2 percent tolerance
for sealed berry cracks on the Exotic grape variety. This action was
recommended by the California Grape and Tree Fruit League (League).
DATES: Comments must be received by January 12, 2011.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments must be sent to the Docket Clerk,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or Internet: http://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: http://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 the comments will be made public on the Internet at
the address provided above.
FOR FURTHER INFORMATION CONTACT: Dawana J. Clark, Marketing Specialist,
or Kenneth G. Johnson, Regional Manager, DC Marketing Field Office,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA; Telephone: (301) 734-5243, Fax: (301) 734-5275, or E-mail:
[email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237;
Telephone: (202) 720-2491, Fax: (202) 720-8938, or E-mail:
[email protected].
SUPPLEMENTARY INFORMATION: This proposed rule is issued under authority
of the Export Grape and Plum Act, as amended (7 U.S.C. 591-599),
hereinafter referred to as the ``Act.'' The Act promotes the foreign
trade of U.S. grown grapes and plums by authorizing the implementation
of regulations with minimum grade, quality, container, container
marking, and inspection requirements.
This proposed rule would amend ``Regulations Issued Under Authority
of the Export Grape and Plum Act'' (regulations) (7 CFR part 35). The
regulated entities are shippers, exporters, and carriers of table
grapes for export.
This rule has been determined not significant for purposes of
Executive Order 12866 and, therefore, has not been reviewed by the
Office of Management and Budget.
This proposal has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
Section 35.11 of the regulations establishes minimum size and
quality requirements for export shipments of any variety of vinifera
species table grapes. Currently, such grapes shipped to Japan, Europe,
or Greenland must meet a minimum grade of U.S. Fancy Table as specified
in the U.S. Standards for Grades of Table Grapes (standards) (7 CFR
part 51, sections 51.880-51.992), with the additional requirement that
bunches must each weigh at least one-half pound. Section 35.11 also
defines the countries in Europe for which the export regulation
applies. Finally, Sec. 35.11 provides an additional 2 percent
tolerance for sealed berry cracks on both the Ribier and Exotic
varieties, which must otherwise meet the minimum requirements for the
U.S. No. 1 Table grade as contained in the standards.
This proposed rule would revise Sec. 35.11(a) of the order's
administrative rules and regulations by changing the minimum bunch
weight requirement for grapes exported to Japan, Europe, and Greenland
from one-half pound to one-quarter pound. This rule would further
revise Sec. 35.11(a) by updating the list of European countries
defined in the regulation. Finally, this rule would revise Sec.
35.11(b) by removing the additional 2 percent tolerance for sealed
berry cracks on the Exotic grape variety.
The Board of Directors of the California Grape and Tree Fruit
League (League), which represents a substantial portion of the fresh
table grape industry, unanimously recommended that the one-half pound
bunch size minimum requirement be removed from Sec. 35.11(a) of the
regulations. This would make the minimum bunch size requirement one-
quarter pound as defined in the standards for U.S. Fancy Table grade.
There has been an increasing retail demand for table grapes
packaged in plastic clamshells, particularly for export markets. One of
the most popular package sizes is the 500 gram (approximately 1.1
pounds) clamshell. However, handlers find it difficult to fit two
larger (minimum one-half pound) grape bunches into the 500 gram
clamshell. The recommended change would allow handlers to use smaller
(minimum one-quarter pound) bunches to fill the smaller clamshell
packages. This change would offer handlers greater flexibility in
packaging and would allow them to pack a greater portion of the crop
into the clamshell packages that are popular in the marketplace. The
League believes this change would position shippers and exporters to
better meet market demand while maintaining pack quality.
The League further recommended that the list of countries used to
define the term Europe in Sec. 35.11(a) of the regulations be updated
to include the current names of European countries for which the export
regulations apply. Specifically, the names
[[Page 77562]]
``Czechoslovakia,'' ``East Germany,'' ``West Germany,'' and
``Yugoslavia'' would be deleted, and the following countries would be
added to the remaining list: Bosnia, Croatia, Czech Republic, Germany,
Herzegovina, Macedonia, Montenegro, Serbia, and Slovenia. Such action
would clarify the European destinations for which the export
regulations are applicable.
Finally, the League recommended that Sec. 35.11(b) be revised by
removing the additional 2 percent tolerance for sealed berry cracks on
Exotic variety grapes. This variety is no longer produced on a
commercial basis and the additional tolerance is no longer warranted.
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
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened.
Because California table grapes represent the bulk of U.S.
production, it can be assumed that an analysis of the effects of the
proposed rule upon members of the California table grape industry would
be representative of the entire U.S. industry. According to industry
statistics, at least 98 percent of U.S. table grapes are produced in
California. Approximately 35 percent of the U.S. table grape crop is
exported. There are approximately 550 table grape producers in
California, and approximately 75 table grape shippers. The number of
table grape exporters and carriers is unknown.
Small agricultural producers are defined as those having annual
receipts of less than $750,000; and small agricultural service firms,
including shippers, exporters, and carriers, are defined by the Small
Business Administration (SBA) (13 CFR 121.201) as those having annual
receipts of less than $7,000,000. USDA's National Agricultural
Statistics Service reports that California table grape production for
2008 was 724,000 tons, valued at $461 per ton or $333,764,000. Average
receipts for California's 550 producers would thus be approximately
$606,844, which is lower than the SBA threshold of $750,000 for small
producers. According to USDA's Foreign Agricultural Service, 367,643
tons of fresh grapes, valued at $608,757,000, were exported from the
U.S. in 2008. Assuming that 98 percent of exported grapes were produced
in California, average 2008 receipts for California's 75 shippers would
have been $7,954,425, which is higher than the SBA threshold of
$7,000,000 for small agricultural firms.
Based upon the preceding calculations, it could be concluded that
the majority of California (and therefore, U.S.) table grape producers
would be classified as small entities, and that the majority of
shippers would be classified as large entities, according to SBA
definitions. However, the League believes that a small number of
shippers ship a majority of the volume, and that the majority of
California table grape shippers should be classified as small entities
under SBA's standards. No information regarding the receipts or size of
U.S. table grape exporters and carriers is available.
This proposed rule is issued under authority of the Export Grape
and Plum Act, as amended (7 U.S.C. 591-599). This rule would amend the
``Regulations Issued Under Authority of the Export Grape and Plum
Act''(7 CFR part 35) by changing the minimum bunch weight requirement
specified in Sec. 35.11(a) for grapes exported to Japan, Europe, and
Greenland from one-half pound to one-quarter pound. This rule would
further revise Sec. 35.11(a) by updating the list of European
countries defined in the regulation. Finally, this rule would revise
Sec. 35.11(b) by removing the additional 2 percent tolerance for
sealed berry cracks on the Exotic grape variety.
The League met on June 24, 2010, and unanimously recommended
revising the minimum size requirements to allow a one-quarter pound
minimum bunch size, instead of the one-half pound minimum bunch size
currently specified in the regulations. The one-quarter pound minimum
bunch size is specified in the standards for U.S. Fancy Table grade
grapes, which are incorporated by reference in the regulations. The
League also recommended updating the list of European countries defined
in the regulation to reflect the currently recognized names of those
countries. Finally, the League recommended removing the additional 2
percent tolerance for sealed berry cracks in the Exotic grape variety.
This variety is no longer in commercial production, and an additional
tolerance for defects in that variety is no longer warranted.
The League believes that adhering to the smaller bunch size
requirement currently specified in the standards for U.S. Fancy Table
grade would have a beneficial impact on the entire industry. It is
difficult to fill the smaller clamshells with the larger bunches of
grapes, thus limiting the number of clamshells that can be shipped. It
is easier to fill the clamshells with smaller bunches, which fit into
the packages better. Therefore, the League believes that the industry
will be able to ship a greater number of 500 gram clamshells to meet
market demand. Although they did not identify any potential additional
costs to making this change, the League believes that the impact of any
additional costs would be outweighed by the advantage of presenting
U.S. table grapes in packages most desirable in the retail market. The
benefits of this action would be a gain in the overall amount of
product sold and an increase in returns to producers, shippers,
exporters, and carriers, regardless of size.
Updating the list of European countries for which the export
regulations apply and removing the additional 2 percent tolerance for
sealed berry cracks on the obsolete Exotic variety merely update the
regulations to reflect current terminology and industry trends. These
changes are not expected to have any economic impact on large or small
entities.
The League recommended that these changes be effective for the 2011
harvesting season, which begins approximately May 1, 2011. These
changes would remain in effect on a continuing basis, beginning with
the 2011 season. These actions would allow for more practical and
efficient packaging while maintaining the overall quality of exported
table grapes. These recommended actions are intended to allow shippers
and exporters to be more competitive in the marketplace, thereby
selling more product.
This proposed rule would not impose any additional reporting or
recordkeeping requirements on either small or large table grape
shippers, exporters, or carriers. As with all Federal regulatory
marketing 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap or conflict with this proposed rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov.
[[Page 77563]]
Any questions about the compliance guide should be sent to Antoinette
Carter at the previously mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
A 30-day comment period is provided to allow interested persons to
respond to this proposal. Thirty days is deemed appropriate because
this rule should be in place prior to the 2011 harvesting season, which
begins approximately May 1, 2011. All written comments timely received
will be considered before a final determination is made on this matter.
List of Subjects in 7 CFR Part 35
Administrative practice and procedures, Exports, Grapes, Plums,
Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 35 is
proposed to be amended as follows:
PART 35--EXPORT GRAPES AND PLUMS
1. The authority citation for 7 CFR part 35 continues to read as
follows:
Authority: 48 Stat. 734; 7 U.S.C. 591-599.
2. In Sec. 35.11, paragraphs (a) and (b) are revised to read as
follows:
Sec. 35.11 Minimum requirements.
* * * * *
(a) Any such variety for export to destinations in Japan, Europe
(defined to mean the following countries: Albania, Austria, Belgium,
Bosnia, Bulgaria, Croatia, Czech Republic, Denmark, England, Finland,
France, Germany, Greece, Herzegovina, Hungary, Iceland, Ireland, Italy,
Liechtenstein, Luxembourg, Macedonia, Montenegro, Netherlands, Northern
Ireland, Norway, Poland, Portugal, Romania, Scotland, Serbia, Slovenia,
Spain, Sweden, Switzerland, Wales), or Greenland shall meet each
applicable minimum requirement of the U.S. Fancy Table grape grade as
specified in the U.S. Standards for Grades of Table Grapes (European or
Vinifera Type) (Sec. Sec. 51.880-51.912 of this title). The Black
Corinth variety shall be exempt from bunch and berry size requirements.
(b) Any such variety for export to any foreign destination, other
than destinations in Japan, Europe, Greenland, Canada, or Mexico, shall
meet each applicable minimum requirement of the U.S. No. 1 Table grape
grade as specified in the U.S. Standards for Grades of Table Grapes
(European or Vinifera Type) (Sec. Sec. 51.880-51.912 of this title),
except that an additional 2 percent tolerance for sealed berry cracks
on the Ribier variety is allowed. The Black Corinth variety shall be
exempt from bunch and berry size requirements.
* * * * *
Dated: December 7, 2010.
Craig Morris,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2010-31197 Filed 12-10-10; 8:45 am]
BILLING CODE 3410-02-P