[Federal Register: September 11, 2002 (Volume 67, Number 176)]
[Rules and Regulations]
[Page 57501-57503]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11se02-1]
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[[Page 57501]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. FV02-989-1 FIR]
Raisins Produced From Grapes Grown in California; Addition of a
New Varietal Type and Quality Requirements for Other Seedless-Sulfured
Raisins
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule that added a new varietal
type of raisin under the Federal marketing order for California raisins
(order). The order regulates the handling of raisins produced from
grapes grown in California and is locally administered by the Raisin
Administrative Committee (RAC). The order provides authority for volume
and quality regulations that are imposed by varietal type. This action
continues to establish and add to the regulations a new varietal type
(Other Seedless-Sulfured raisins), along with quality requirements for
this varietal type. This is a new type of raisin being produced by some
industry members.
EFFECTIVE DATE: Effective October 11, 2002.
FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Senior Marketing
Specialist, California Marketing Field Office, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 2202
Monterey Street, suite 102B, Fresno, California 93721; telephone: (559)
487-5901, Fax: (559) 487-5906; or George Kelhart, Technical Advisor,
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.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, 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: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 989 (7 CFR part 989), both as amended,
regulating the handling of raisins produced from grapes grown in
California, hereinafter referred to as the ``order.'' 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.''
USDA is issuing this rule in conformance with Executive Order
12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive intent. Under
the order provisions now in effect, varietal types and quality
requirements may be established for raisins acquired by handlers during
the crop year. This rule continues to establish a new varietal type and
quality requirements for Other Seedless-Sulfured raisins. This rule
will not preempt any State or local laws, regulations, or policies,
unless they present an irreconcilable conflict with this rule.
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. Such
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.
This rule continues to add a new varietal type of raisin under the
order. The order regulates the handling of raisins produced from grapes
grown in California and is administered locally by the RAC. The order
provides authority for volume and quality regulations that are imposed
by varietal type. This action continues to establish and add to the
regulations a new varietal type (Other Seedless-Sulfured raisins),
along with quality requirements for this varietal type. This is a new
type of raisin being produced by some industry members. This action was
recommended by the RAC at a meeting in August 2001, and discussed
further at RAC meetings in September and November 2001. Changes to the
import regulation are being made in a separate rule.
Varietal Type for Other Seedless-Sulfured Raisins
The order provides authority for volume and quality regulations
that are imposed by varietal type. Section 989.10 of the order defines
the term varietal type to mean raisins generally recognized as
possessing characteristics differing from other raisins in a degree
sufficient to make necessary or desirable separate identification and
classification. That section includes a list of eight varietal types,
and provides authority for the RAC, with the approval of USDA, to
change this list. A description of these varietal types, along with
additional varietal types, may be found in Sec. 989.110 of the order's
administrative rules and regulations. Prior to implementation of the
interim final rule, there were nine different varietal types of raisins
listed in this section.
Some industry members have found a new market for raisins made by
dehydrating sulfured red seedless grapes. These raisins did not fit
into any of the varietal types specified in Sec. 989.110. Such raisins
are similar to the Other Seedless varietal type, except they have been
sulfured. Such raisins are also similar to the Golden Seedless varietal
type, but may not meet the color requirements for Golden Seedless
raisins. Golden Seedless raisins are made from green seedless grapes
and are mostly yellowish green to greenish
[[Page 57502]]
amber in color when sulfured. Red seedless grapes typically vary in
color when sulfured.
Thus, the RAC recommended establishing, and adding to the
regulations, a new varietal type--Other Seedless-Sulfured raisins. This
allows the RAC to consider Other Seedless-Sulfured raisins separate
from other varietal types for the purpose of volume and quality
regulation, thereby recognizing distinct differences in supply and
demand conditions, and raisin characteristics. Accordingly, a new
paragraph (j) was added to Sec. 989.110 to define Other Seedless-
Sulfured as all raisins produced from Ruby Seedless, Kings Ruby
Seedless, Flame Seedless and other seedless grapes not included in any
of the varietal categories for Seedless raisins which have been
artificially dehydrated and sulfured.
Quality Requirements for Other Seedless-Sulfured Raisins
This rule continues to add quality requirements for Other Seedless-
Sulfured raisins. Specifically, this rule continues to add: incoming
quality requirements (which includes adding these raisins to the
order's weight dockage system); a factor for converting between natural
condition and processed weight; and outgoing quality requirements for
Other Seedless-Sulfured raisins. The details of these changes are
discussed below.
Incoming Quality Requirements
Section 989.58(a) of the order provides authority for quality
control regulations whereby natural condition raisins that are
delivered from producers to handlers must meet certain incoming quality
requirements. Section 989.701 of the order's regulations specifies
minimum grade and condition standards for natural condition raisins for
each varietal type. Prior to implementation of the interim final rule,
paragraph (b) of that section specified requirements for two varietal
types of raisins--Dipped Seedless and Oleate and Related Seedless
raisins. The RAC determined that natural condition Other Seedless-
Sulfured raisins are similar to these two varietal types and,
therefore, they should have the same incoming quality requirements.
Accordingly, paragraph (b) of Sec. 989.701 was revised to include
Other Seedless-Sulfured raisins.
Weight Dockage System
Section 989.58(a) also contains authority for handlers to acquire
natural condition raisins that fall outside the tolerance established
for maturity, which includes substandard raisins, under a weight
dockage system. Handler acquisitions of raisins and payments to
producers are adjusted according to the percentage of substandard
raisins in a lot, or the percentage of raisins that fall below certain
levels of maturity. Section 989.210(a) of the order's regulations lists
the varietal types of raisins that may be acquired pursuant to a weight
dockage system. Sections 989.212 and 989.213 contain tables with
dockage factors applicable to lots of raisins that fall outside the
tolerances for substandard raisins and maturity, respectively,
specified in Sec. 989.701.
Because these raisins are similar to Dipped Seedless and Oleate and
Related Seedless raisins, this rule continues to add Other Seedless-
Sulfured raisins to the list contained in Sec. 989.210(a), the
substandard dockage table specified in Sec. 989.212(b), the list
regarding maturity in Sec. 989.213(a), and to the maturity dockage
tables in Sec. 989.213(b) and (d). Additionally, this rule continues
to remove obsolete language contained in Sec. Sec. 989.212 and 989.213
that was applicable to only the 1998-99 crop year.
Raisin Weight Conversion Table
Section 989.601 of the order's regulations specifies a list of
conversion factors for raisin weights. The factors are used to convert
the net weight of reconditioned raisins acquired by handlers as packed
raisins to a natural condition weight. The net weight of the raisins
after the completion of processing is divided by the applicable factor
to obtain the natural condition weight. If the adjusted weight exceeds
the original weight, the original weight is used. This rule continues
to add Other Seedless-Sulfured raisins to that list, specifying a
conversion factor of 0.95. These raisins are similar to Golden Seedless
and Dipped Seedless for which 0.95 conversion factors are specified.
Outgoing Quality Requirements
Section 989.59 of the order provides authority for quality control
regulations for raisins subsequent to their acquisition by handlers
(outgoing requirements). Section 989.702 of the order's regulations
specifies minimum grade standards for packed raisins. Prior to
implementation of the interim final rule, paragraph (a) of that section
specified requirements for three varietal types--Natural (sun-dried)
Seedless, Dipped Seedless, and Oleate and Related Seedless raisins.
This rule continues to add Other Seedless-Sulfured raisins to paragraph
(a).
Accordingly, Other Seedless-Sulfured raisins must meet the
requirements of U.S. Grade C as defined in the United States Standards
for Grades of Processed Raisins (Sec. Sec. 52.1841 through 52.1858)
issued under the Agricultural Marketing Act of 1946 (7 U.S.C. 1622
through 1624). At least 70 percent, by weight, of the raisins in a lot
must be well-matured or reasonably well-matured. With respect to
select-sized and mixed-sized lots, the raisins must at least meet the
U.S. Grade B tolerances for pieces of stem, and underdeveloped and
substandard raisins, and small (midget) sized raisins must meet the
U.S. Grade C tolerances for those factors.
Reporting Requirements
All raisin handlers are currently required to submit various
reports to the RAC where the data collected is segregated by varietal
type of raisin. These reports include: (1) Weekly Report of Standard
Raisin Acquisitions (RAC-1); (2) Weekly Report of Standard Raisins
Received for Memorandum Receipt or Warehousing (RAC-3); (3) Monthly
Report of Free Tonnage Raisin Disposition (RAC-20); (4) Weekly Off-
Grade Summary (RAC-30); (5) Inventory of Free Tonnage Standard Quality
Raisins on Hand (RAC-50); and (6) Inventory of Off-Grade Raisins on
Hand (RAC-51). This rule continues to require that an additional column
be added to these six forms so that handlers can report Other Seedless-
Sulfured raisins separately. The total annual burden for these six
forms is 660 hours. This action does not change this burden on
handlers.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this final 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. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 20 handlers of California raisins who are
subject to regulation under the order and approximately 4,500 raisin
producers in the regulated area. Small agricultural firms are defined
by the Small Business Administration (13 CFR 121.201) as those having
annual receipts of less than
[[Page 57503]]
$5,000,000, and small agricultural producers are defined as those
having annual receipts of less than $750,000. Thirteen of the 20
handlers subject to regulation have annual sales estimated to be at
least $5,000,000, and the remaining 7 handlers have sales less than
$5,000,000. No more than 7 handlers, and a majority of producers, of
California raisins may be classified as small entities.
The order provides authority for volume and quality regulations
that are imposed by varietal type of raisin. This rule continues to
establish and add to the regulations a new varietal type (Other
Seedless-Sulfured raisins), along with quality requirements for this
varietal type. This is a new type of raisin that is being produced by
some industry members. A new paragraph (j) was added to Sec. 989.110
of the order's regulations to define the varietal type Other Seedless-
Sulfured raisins. Pursuant to Sec. Sec. 989.58 and 989.59, quality
requirements for Other Seedless-Sulfured raisins were added to the
order's regulations as follows: incoming quality requirements were
added to Sec. Sec. 989.210, 989.212, 989.213, and 989.701; a factor
for converting between natural condition and processed weight is added
to Sec. 989.601; and outgoing quality requirements were added to Sec.
989.702.
Regarding the impact of this action on affected entities, this rule
allows the RAC to consider Other Seedless-Sulfured raisins separately
from other varietal types of raisins for the purpose of volume and
quality regulation, thereby recognizing distinct differences in supply
and demand conditions for that product. Producers and handlers may take
advantage of a separate and distinct market for Other Seedless-Sulfured
raisins. This rule allows appropriate quality requirements to be
applied to this new varietal type, which facilitates the production and
handling of such raisins. In addition, this rule allows the RAC to
examine data on acquisitions and shipments of Other Seedless-Sulfured
raisins, as handlers submit various reports to the RAC where the data
is segregated by varietal type. The RAC can analyze this data and
assess marketing trends and opportunities for this unique varietal
type. There are no expected additional costs associated with this
regulation on either producers or handlers.
The RAC considered some alternatives to this action. The RAC
reviewed the existing varietal types to see whether Other Seedless-
Sulfured raisins could fit into an established category. The Golden
Seedless and Other Seedless varietal types were examined. However,
Other Seedless-Sulfured raisins may not meet the color requirements for
Golden Seedless raisins. In addition, Other Seedless-Sulfured raisins
do not fit into the Other Seedless category because that varietal type
has historically included raisins that have not been sulfured. The
industry determined that it was appropriate to establish a separate
varietal type for Other Seedless raisins that had been dehydrated and
sulfured.
All raisin handlers are currently required to submit various
reports to the RAC where the data collected is segregated by varietal
type of raisin. These reports include: (1) Weekly Report of Standard
Raisin Acquisitions (RAC-1); (2) Weekly Report of Standard Raisins
Received for Memorandum Receipt or Warehousing (RAC-3); (3) Monthly
Report of Free Tonnage Raisin Disposition (RAC-20); (4) Weekly Off-
Grade Summary (RAC-30); (5) Inventory of Free Tonnage Standard Quality
Raisins on Hand (RAC-50); and (6) Inventory of Off-Grade Raisins on
Hand (RAC-51). This rule continues to require that an additional column
be added to these six forms so that handlers can report Other Seedless-
Sulfured raisins separately. The total annual burden for these six
forms is 660 hours. This action does not change this burden on
handlers.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection requirements referenced above
have been approved by the Office of Management and Budget (OMB) under
OMB Control No. 0581-0178. 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.
Additionally, except for applicable section 8e import regulations,
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule. However, as previously stated,
Other Seedless-Sulfured raisins must meet U.S. Grade C as defined in
the United States Standards for Grades of Processed Raisins (Sec. Sec.
52.1841 through 52.1858) issued under the Agricultural Marketing Act of
1946 (7 U.S.C. 1622 through 1624).
Further, the RAC's meetings on August 14, September 20, and
November 13, 2001, where this action was deliberated were public
meetings widely publicized throughout the raisin industry. All
interested persons were invited to attend the meetings and participate
in the industry's deliberations.
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/fv/moab.html. Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
An interim final rule concerning this action was published in the
Federal Register on May 28, 2002, (67 FR 36789). Copies of the rule
were mailed by Committee staff to all Committee members and alternates,
the Raisin Bargaining Association, handlers and dehydrators. In
addition, the rule was made available through the Internet by the
Office of the Federal Register and USDA. That rule provided for a 60-
day comment period that ended on July 29, 2002. No comments were
received.
After consideration of all relevant material presented, including
the information and recommendation submitted by the RAC 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 in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
Accordingly, the interim final rule amending 7 CFR part 989 which
was published at 67 FR 36789 on May 28, 2002, is adopted as a final
rule without change.
Dated: September 4, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-23036 Filed 9-10-02; 8:45 am]
BILLING CODE 3410-02-P
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