[Code of Federal Regulations]
[Title 7, Volume 8]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR989.66]

[Page 648-650]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER IX--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
      Orders; Fruits, Vegetables, Nuts), DEPARTMENT OF AGRICULTURE
 
PART 989_RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA--Table 
of Contents
 
                    Subpart_Order Regulating Handling
 
Sec. 989.66  Reserve tonnage generally.

    (a) The standard raisins acquired by a handler which are designated 
as reserve tonnage and reserve tonnage

[[Page 649]]

transferred to a handler by the committee shall be held by him for the 
account of the committee and subject to the applicable restrictions of 
this part.
    (b)(1) Each handler shall hold in storage all reserve tonnage 
acquired by him and all reserve tonnage transferred to him by the 
committee until he has been relieved of such responsibility by the 
committee either by delivery to the committee or otherwise. Such handler 
shall store such reserve tonnage raisins in natural condition without 
addition of moisture and in such manner as will maintain the raisins in 
the same condition as when he acquired them, except for normal and 
natural deterioration and shrinkage, and except for loss through fire, 
acts of God or other conditions beyond the handler's control.
    (2) Reserve tonnage acquired by a handler or transferred to a 
handler by the committee shall be stored separate and apart from other 
raisins to such extent and identified in such manner as the committee 
shall specify in its rules and procedures with the approval of the 
Secretary.
    (3) Each handler may, under the direction and supervision of the 
committee, substitute for any reserve tonnage raisins a like quantity of 
standard raisins of the same varietal type and of the same or more 
recent year's production. Each such handler shall give the committee 
reasonable advance notice of his intention to substitute, the exact 
location of the raisins for which substitution is to be made, and 
arrange with the committee a mutually satisfactory time for the 
substitution.
    (4) The committee may, after giving reasonable notice, require a 
handler to deliver to it, or to anyone designated by it, at such 
handler's warehouse or at such other place as the raisins may be stored, 
part or all of the reserve tonnage raisins held by such handler. Reserve 
tonnage raisins delivered by any handler to the committee, or to any 
person designated by it, in the form of natural condition raisins shall 
in the aggregate be not more than 2 percent less than the average 
maturity level of all raisins such handler acquired during the 
applicable crop year. The committee may require that such delivery 
consist of natural condition raisins, or it may arrange for such 
delivery to consist of packed raisins.
    (c) Each handler shall, at all times, hold in his possession or 
under his control reserve tonnage referable to his acquisitions of 
standard raisins and reserve tonnage transferred to him by the 
committee, less any quantity of such reserve tonnage released to him by 
a change of percentages, delivered by him pursuant to instructions of 
the committee or sold to him by the committee.
    (d) Reserve tonnage raisins delivered by any handler to the 
committee, or to any person designated by it, whether in the form of 
natural condition raisins or packed raisins shall meet the applicable 
minimum grade or grade and condition standards, except for normal and 
natural deterioration. The committee shall have the authority to 
require, in its discretion and at its expense, such reinspection and 
certification of reserve pool tonnage raisins as it may deem necessary.
    (e) In the event the committee offers to handlers reserve tonnage 
raisins for contract packing or for sale in export, as provided in Sec. 
989.67, each handler shall be given the opportunity to pack or purchase 
his share of each offer.
    (f) Handlers shall be compensated for receiving, storing, 
fumigating, handling, and inspection of that tonnage of reserve raisins 
determined by the reserve percentage of a crop year and held by them for 
the account of the committee, in accordance with a schedule of payments 
established by the committee and approved by the Secretary. A box rental 
shall be paid by the committee to producers or handlers for boxes used 
in storing reserve tonnage raisins beyond the crop year of acquisition 
in accordance with a rental schedule established by the committee and 
approved by the Secretary. The handler compensation shall be reviewed 
annually and shall be paid, as to the amount determined to be earned and 
unpaid, as soon as practicable after the end of the second quarter of 
the crop year and quarterly thereafter. Any handler may request the 
committee, by registered or certified mail, at any time after June 1 of 
a crop year to remove or relocate reserve tonnage raisins of the current 
crop year which

[[Page 650]]

remain in his possession. At any time during a crop year, a handler may 
request removal or relocation of reserve tonnage of a prior crop year. 
In each instance, he may request that the committee provide the 
necessary containers for any such removal or relocation. When so 
requested as to current crop year raisins, the committee shall make the 
removal or relocation, the availability of containers, storage space and 
time of request permitting, by September 15 of the subsequent crop year, 
and as to raisins of the prior crop year, within 30 days, supplying the 
necessary containers if so requested. If the committee removes or 
relocates reserve raisins of the current crop year pursuant to a 
handler's request, and such raisins are released to him by September 15 
of the subsequent crop year, the handler shall reimburse the committee 
for any costs incurred by it in such removal or relocation. If any 
handler requests removal or relocation of reserve raisins, the committee 
shall immediately give notice thereof to the Secretary.
    (g) The committee shall have the authority, in its discretion, to 
obtain loans, nonrecourse or otherwise, on any part of the reserve 
tonnage not subject to release as desirable free tonnage and to pledge 
or hypothecate the raisins on which such loans are obtained as security 
therefor: Provided, That in every such case, there shall be included in 
the loan agreement a provision to the effect that, in case the lender 
obtains possession or control of such raisins, he will dispose of them 
in such a manner as will not tend to defeat the objectives of this 
amended subpart. The net proceeds of any such loan shall be distributed 
by the committee pursuant to paragraph (h) of this section.
    (h) The net proceeds from the disposition of reserve tonnage raisins 
of any varietal type shall be distributed by the committee to the 
respective producers, or their successor in interest thereto, on the 
basis of the volume of their respective contributions to the reserve 
tonnage of such varietal type. Distribution of the proceeds in 
connection with the reserve tonnage contributed by a nonprofit 
cooperative marketing association which has authority to market the 
raisins of its members and to allocate the proceeds therefrom to such 
members shall be made to such association. Advance or progress payments 
may be made by the committee, in conformity with the provisions of this 
paragraph, as sufficient funds become available.

[32 FR 12161, Aug. 24, 1967, as amended at 37 FR 19623, Sept. 21, 1972; 
41 FR 32417, Aug. 3, 1976; 42 FR 37202, July 20, 1977; 48 FR 32977, July 
20, 1983; 54 FR 34138, Aug. 18, 1989]