80_FR_22436 80 FR 22359 - Irish Potatoes Grown in Colorado and Imported Irish Potatoes; Relaxation of the Handling Regulation for Area No. 2 and Import Regulations

80 FR 22359 - Irish Potatoes Grown in Colorado and Imported Irish Potatoes; Relaxation of the Handling Regulation for Area No. 2 and Import Regulations

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 77 (April 22, 2015)

Page Range22359-22361
FR Document2015-09289

This rule revises the minimum quantity exception for potatoes handled under the Colorado potato marketing order, Area No. 2 (order). The order regulates the handling of Irish potatoes grown in Colorado and is administered locally by the Colorado Potato Administrative Committee, Area No. 2 (Committee). This action increases the quantity of potatoes that may be handled under the order without regard to the order's handling regulation requirements from 1,000 to 2,000 pounds. The change in the import regulation is required under section 8e of the Agricultural Marketing Agreement Act of 1937. This action allows for the importation which, in the aggregate, does not exceed 2,000 pounds for all other round type potatoes, except red skinned, round type or long type potatoes that continue to remain at a 500 pound limit, to be imported without regard to the import regulations. This action is expected to benefit producers, handlers, and importers.

Federal Register, Volume 80 Issue 77 (Wednesday, April 22, 2015)
[Federal Register Volume 80, Number 77 (Wednesday, April 22, 2015)]
[Rules and Regulations]
[Pages 22359-22361]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-09289]



[[Page 22359]]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 948 and 980

[Doc. No. AMS-FV-13-0073; FV13-948-3 FR]


Irish Potatoes Grown in Colorado and Imported Irish Potatoes; 
Relaxation of the Handling Regulation for Area No. 2 and Import 
Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule revises the minimum quantity exception for potatoes 
handled under the Colorado potato marketing order, Area No. 2 (order). 
The order regulates the handling of Irish potatoes grown in Colorado 
and is administered locally by the Colorado Potato Administrative 
Committee, Area No. 2 (Committee). This action increases the quantity 
of potatoes that may be handled under the order without regard to the 
order's handling regulation requirements from 1,000 to 2,000 pounds. 
The change in the import regulation is required under section 8e of the 
Agricultural Marketing Agreement Act of 1937. This action allows for 
the importation which, in the aggregate, does not exceed 2,000 pounds 
for all other round type potatoes, except red skinned, round type or 
long type potatoes that continue to remain at a 500 pound limit, to be 
imported without regard to the import regulations. This action is 
expected to benefit producers, handlers, and importers.

DATES: Effective date: April 27, 2015.

FOR FURTHER INFORMATION CONTACT: Sue Coleman, Marketing Specialist, or 
Gary D. Olson, Regional Director, Northwest Marketing Field Office, 
Marketing Order and Agreement Division, Fruit and Vegetable Program, 
AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: 
[email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement No. 97 and Order No. 948, both as amended (7 CFR part 948), 
regulating the handling of Irish potatoes grown in Colorado, 
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.''
    This final rule is also issued under section 8e of the Act, which 
provides that whenever certain specified commodities, including Irish 
potatoes, are regulated under a Federal marketing order, imports of 
these commodities into the United States are prohibited unless they 
meet the same or comparable grade, size, quality, or maturity 
requirements as those in effect for the domestically produced 
commodities.
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have retroactive 
effect.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of import regulations 
issued under section 8e of the Act.
    This final rule revises the minimum quantity exception currently 
prescribed in the handling regulation for potatoes handled under 
Marketing Order No. 948. This rule increases the quantity of potatoes 
that may be handled without regard to the order's handling regulation 
from 1,000 to 2,000 pounds. Relaxing the minimum quantity exception is 
expected to benefit producers, handlers, and importers. The rule was 
unanimously recommended by the Committee at a meeting on July 18, 2013.
    Section 948.4 of the order divides the State of Colorado into three 
areas of regulation for marketing order purposes. These areas include: 
Area No. 1, commonly known as the Western Slope; Area No. 2, commonly 
known as San Luis Valley; and, Area No. 3, which consists of the 
remaining producing areas within the State of Colorado not included in 
the definition of Area No. 1 or Area No. 2. Currently, the order only 
regulates the handling of potatoes produced in Area No. 2 and Area No. 
3. Regulation for Area No. 1 has been suspended.
    Section 948.50 of the order establishes committees as 
administrative agencies for each of the areas set forth under Sec.  
948.4. Section 948.22(a) of the order authorizes the issuance of grade, 
size, quality, maturity, pack, and container regulations for potatoes 
grown in the order's production area. Further, Sec.  948.22(b)(2) of 
the order provides authority for each area committee to recommend 
modification of regulations to provide for minimum quantities that 
should be relieved of regulatory or administrative obligations.
    Section 948.386 of the order's administrative rules prescribes 
grade, size, maturity, and inspection requirements for Colorado Area 
No. 2 potatoes. Paragraph (f) of that section prescribes the minimum 
quantity of potatoes that are exempt from regulation. Currently, each 
person may handle up to 1,000 pounds of potatoes without regard to the 
order's grade, size, maturity, and inspection requirements.
    At its meeting on July 18, 2013, the Committee unanimously 
recommended increasing the order's minimum quantity exception from 
1,000 to 2,000 pounds. The recommendation was made at the request of 
producers and handlers who wanted greater flexibility in distributing 
smaller quantities of potatoes. In its deliberations, the Committee 
commented that 2,000 pounds is consistent with the current weight of a 
pallet of potatoes. One pallet is typically the smallest lot of 
potatoes distributed, since most delivery vehicles are now capable of 
transporting at least 2,000 pounds.
    Handlers also feel that the value of one pallet of potatoes does 
not warrant the cost of complying with the order's regulations. Based 
on an estimated average f.o.b. price of $12.60, the value of one pallet 
of potatoes is approximately $252.00. Increasing the minimum quantity 
exception from 1,000 to 2,000 pounds of potatoes allows a handler to 
ship one pallet of potatoes without regard to the order's grade, size, 
maturity, and inspection requirements. Relaxing the minimum quantity is

[[Page 22360]]

expected to benefit producers, handlers, and importers.
    Section 8e of the Act provides that when certain domestically 
produced commodities, including Irish potatoes, are regulated under a 
Federal marketing order, imports of that commodity must meet the same 
or comparable grade, size, quality, and maturity requirements. Whenever 
two or more marketing orders regulating the same commodity produced in 
different areas of the United States are concurrently in effect, the 
importation into the United States of any such commodity shall be 
prohibited unless it complies with the grade, size, quality and 
maturity provisions of the order which, as determined by the Secretary 
of Agriculture, regulates the commodity produced in the area with which 
the imported commodity is in most direct competition (7 U.S.C. 608e-
1(a)). Section 980.1(a)(2)(ii) of the Vegetable Import Regulations 
specifies that imported round-type potatoes, except red-skinned, round 
type potatoes, are in most direct competition with potatoes of the same 
type produced in the area covered by Marketing Order 948. Since this 
action increases the minimum quantity exemption under the domestic 
handling regulations, a corresponding change to the import regulations 
must also be considered.
    Minimum grade, size, quality, and maturity requirements for Irish 
potatoes imported into the United States are currently in effect under 
Sec.  980.1 (7 CFR 980.1). The minimum quantity exemption is specified 
in Sec.  980.1(c). The exemption for red skinned, round type or long 
type potatoes will remain at a 500 pound limit as provided in Marketing 
Orders 946 and 945, respectively. This rule increases the quantity for 
all other round type potatoes that may be imported without regard to 
the import regulation requirements from 1,000 to 2,000 pounds. The 
metric equivalent for 1,000 pounds is 453.592 kilograms and 2,000 
pounds is 907.185 kilograms. The increase in the minimum quantity 
exemption for imports of potatoes will have a beneficial impact on 
importers. This rule will provide flexibility in the importation and 
distribution of smaller quantities of potatoes.

Final 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 final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf. Import regulations issued under 
the Act are based on those established under Federal marketing orders.
    There are approximately 80 handlers of Colorado Area No. 2 potatoes 
subject to regulation under the order and approximately 180 producers 
in the regulated production area. There are approximately 240 importers 
of potatoes. Small agricultural service firms (handlers and importers) 
are defined by the Small Business Administration (SBA) as those having 
annual receipts of less than $7,000,000, and small agricultural 
producers are defined as those having annual receipts of less than 
$750,000 (13 CFR 121.201).
    During the 2011-2012 fiscal period, the most recent for which 
statistics are available, 15,072,963 hundredweight of Colorado Area No. 
2 potatoes were inspected under the order and sold into the fresh 
market. Based on an estimated average f.o.b. price of $12.60 per 
hundredweight, the Committee estimates that 66 Area No. 2 handlers, or 
about 83 percent, had annual receipts of less than $7,000,000. In view 
of the foregoing, the majority of Colorado Area No. 2 potato handlers 
may be classified as small entities.
    In addition, based on information provided by the National 
Agricultural Statistics Service, the average producer price for the 
2011 Colorado fall potato crop was $10.70 per hundredweight. 
Multiplying $10.70 by the shipment quantity of 15,072,963 hundredweight 
yields an annual crop revenue estimate of $161,280,704. The average 
annual fresh potato revenue for each of the 180 Colorado Area No. 2 
potato producers is therefore calculated to be approximately $896,000 
($161,280,704 divided by 180), which is greater than the SBA threshold 
of $750,000. Consequently, on average, many of the Colorado Area No. 2 
potato producers may not be classified as small entities.
    Information from the Foreign Agricultural Service, USDA, indicates 
that the dollar value of imports of the type of potatoes affected by 
this rule ranged from approximately $55.8 million in 2009 to $ 56.5 
million in 2013. Using these values, the majority of importers of the 
type of potatoes affected by this rule would have annual receipts of 
less than $7,000,000 and may be classified as small entities.
    Canada is the major potato-producing country exporting potatoes to 
the United States. In 2013, affected shipments of potatoes imported 
into the United States totaled around 3,479,468 hundredweight. Of that 
amount, 3,479,383 hundredweight were imported from Canada, 59 
hundredweight were imported from Ecuador, and 26 hundredweight were 
imported from Peru.
    This final rule revises the quantity of potatoes that may be 
handled without regard to the requirements of Sec.  948.386(a), (b), 
and (c) of the order from 1,000 to 2,000 pounds and makes a 
corresponding change to the potato import regulation. At the July 18, 
2013 meeting, the Committee unanimously recommended increasing the 
minimum quantity exception to be consistent with the approximate weight 
of one pallet of potatoes. Authority for the establishment and 
modification of a minimum quantity exception is provided in Sec.  
948.22(b)(2) of the order. This final rule amends the provisions in 
Sec. Sec.  948.386(f) and 980.1(c). The change in the import regulation 
is required under section 8e of the Act.
    This action is not expected to increase the costs associated with 
the order's requirements or the potato import regulation. Rather, it is 
anticipated that this change will have a beneficial impact. The 
Committee believes it will provide greater flexibility in the 
distribution of small quantities of potatoes. Currently, the 
distribution of potatoes between 1,000 and 2,000 pounds requires an 
inspection and certification that the product conforms to the grade, 
size, and maturity requirements of the order. This translates into a 
cost for handlers and importers of both time and inspection fees, which 
is high in relation to the small value (approximately $252.00 per 
pallet) of these transactions. This action will allow shipments up to 
2,000 pounds of potatoes without regard to the order's grade, size, 
maturity, and inspection requirements and the related costs. The 
benefits for this final rule are expected to be equally available to 
all fresh potato producers, handlers, and importers, regardless of 
their size.
    As an alternative to the proposal, the Committee discussed leaving 
the handling regulation unchanged. The Committee rejected this idea 
because a pallet of potatoes weighs approximately 2,000 pounds and the 
1,000 pound minimum quantity exception did not accommodate this size 
shipment. No other alternatives were discussed.

[[Page 22361]]

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0178 (Generic Vegetable and Specialty Crops). No 
changes in those requirements as a result of this action are necessary. 
Should any changes become necessary, they would be submitted to OMB for 
approval.
    This final rule relaxes the minimum quantity exception under the 
order from 1,000 to 2,000 pounds. Accordingly, this action will not 
impose any additional reporting or recordkeeping requirements on either 
small or large Colorado Area No. 2 potato 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 final rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    In addition, the Committee's meeting was widely publicized 
throughout the Colorado Area No. 2 potato industry and all interested 
persons were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the July 18, 
2013, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue.
    A proposed rule concerning this action was published in the Federal 
Register on October 6, 2014 (79 FR 60117). Copies of the rule were made 
available to all interested Colorado potato producers and handlers. 
Finally, the rule was made available through the Internet by USDA and 
the Office of the Federal Register. A 60-day comment period ending 
December 5, 2014, was provided to allow interested persons to respond 
to the proposal. No comments were received.
    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/MarketingOrdersSmallBusinessGuide. Any questions 
about the compliance guide should be sent to Jeffrey Smutny at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this final rule.
    After consideration of all relevant matter presented, including the 
information and recommendation submitted by 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.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because handlers are already shipping 
potatoes from the 2014-2015 crop and handlers want to take advantage of 
the relaxation as soon as possible. Further, handlers are aware of this 
rule, which was recommended at a public meeting. Also, a 60-day comment 
period was provided for in the proposed rule and no comments were 
received.

List of Subjects

7 CFR Part 948

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

7 CFR Part 980

    Food grades and standards, Imports, Marketing agreements, Onions, 
Potatoes, Tomatoes.

    For the reasons set forth above, 7 CFR parts 948 and 980 are 
amended as follows:

PART 948--IRISH POTATOES GROWN IN COLORADO

0
1. The authority citation for 7 CFR part 948 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

0
2. Amend Sec.  948.386(f) to read as follows:


Sec.  948.386  Handling regulation.

* * * * *
    (f) Minimum quantity. For purposes of regulation under this part, 
each person may handle up to but not to exceed 2,000 pounds of potatoes 
without regard to the requirements of paragraphs (a), (b), and (c) of 
this section, but this exception shall not apply to any shipment which 
exceeds 2,000 pounds of potatoes.
* * * * *

PART 980--VEGETABLES; IMPORT REGULATIONS

0
3. The authority citation for 7 CFR part 980 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.


0
4. In Sec.  980.1, paragraph (c) is revised to read as follows:


Sec.  980.1  Import regulations; Irish potatoes.

* * * * *
    (c) Minimum quantities. Any importation which, in the aggregate, 
does not exceed 500 pounds of red skinned, round type or long type 
potatoes, or 2,000 pounds for all other round type potatoes, may be 
imported without regard to the provisions of this section.
* * * * *

    Dated: April 16, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-09289 Filed 4-21-15; 8:45 am]
 BILLING CODE 3410-02-P



                                                                 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations                                         22359

                                                DEPARTMENT OF AGRICULTURE                               regulating the handling of Irish potatoes                Section 948.4 of the order divides the
                                                                                                        grown in Colorado, hereinafter referred               State of Colorado into three areas of
                                                Agricultural Marketing Service                          to as the ‘‘order.’’ The order is effective           regulation for marketing order purposes.
                                                                                                        under the Agricultural Marketing                      These areas include: Area No. 1,
                                                7 CFR Parts 948 and 980                                 Agreement Act of 1937, as amended (7                  commonly known as the Western Slope;
                                                [Doc. No. AMS–FV–13–0073; FV13–948–3                    U.S.C. 601–674), hereinafter referred to              Area No. 2, commonly known as San
                                                FR]                                                     as the ‘‘Act.’’                                       Luis Valley; and, Area No. 3, which
                                                                                                           This final rule is also issued under               consists of the remaining producing
                                                Irish Potatoes Grown in Colorado and                    section 8e of the Act, which provides                 areas within the State of Colorado not
                                                Imported Irish Potatoes; Relaxation of                  that whenever certain specified                       included in the definition of Area No.
                                                the Handling Regulation for Area No. 2                  commodities, including Irish potatoes,                1 or Area No. 2. Currently, the order
                                                and Import Regulations                                  are regulated under a Federal marketing               only regulates the handling of potatoes
                                                                                                        order, imports of these commodities                   produced in Area No. 2 and Area No. 3.
                                                AGENCY:  Agricultural Marketing Service,                into the United States are prohibited                 Regulation for Area No. 1 has been
                                                USDA.                                                   unless they meet the same or                          suspended.
                                                ACTION: Final rule.                                     comparable grade, size, quality, or                      Section 948.50 of the order establishes
                                                                                                        maturity requirements as those in effect              committees as administrative agencies
                                                SUMMARY:    This rule revises the                       for the domestically produced                         for each of the areas set forth under
                                                minimum quantity exception for                          commodities.                                          § 948.4. Section 948.22(a) of the order
                                                potatoes handled under the Colorado                                                                           authorizes the issuance of grade, size,
                                                                                                           The Department of Agriculture
                                                potato marketing order, Area No. 2                                                                            quality, maturity, pack, and container
                                                                                                        (USDA) is issuing this rule in
                                                (order). The order regulates the handling                                                                     regulations for potatoes grown in the
                                                                                                        conformance with Executive Orders
                                                of Irish potatoes grown in Colorado and                                                                       order’s production area. Further,
                                                                                                        12866, 13563, and 13175.
                                                is administered locally by the Colorado                                                                       § 948.22(b)(2) of the order provides
                                                                                                           This final rule has been reviewed
                                                Potato Administrative Committee, Area                                                                         authority for each area committee to
                                                                                                        under Executive Order 12988, Civil
                                                No. 2 (Committee). This action increases                                                                      recommend modification of regulations
                                                                                                        Justice Reform. This rule is not intended
                                                the quantity of potatoes that may be                                                                          to provide for minimum quantities that
                                                                                                        to have retroactive effect.
                                                handled under the order without regard                                                                        should be relieved of regulatory or
                                                                                                           The Act provides that administrative
                                                to the order’s handling regulation                                                                            administrative obligations.
                                                                                                        proceedings must be exhausted before                     Section 948.386 of the order’s
                                                requirements from 1,000 to 2,000
                                                                                                        parties may file suit in court. Under                 administrative rules prescribes grade,
                                                pounds. The change in the import
                                                                                                        section 608c(15)(A) of the Act, any                   size, maturity, and inspection
                                                regulation is required under section 8e
                                                                                                        handler subject to an order may file                  requirements for Colorado Area No. 2
                                                of the Agricultural Marketing
                                                                                                        with USDA a petition stating that the                 potatoes. Paragraph (f) of that section
                                                Agreement Act of 1937. This action
                                                                                                        order, any provision of the order, or any             prescribes the minimum quantity of
                                                allows for the importation which, in the
                                                                                                        obligation imposed in connection with                 potatoes that are exempt from
                                                aggregate, does not exceed 2,000 pounds
                                                                                                        the order is not in accordance with law               regulation. Currently, each person may
                                                for all other round type potatoes, except
                                                                                                        and request a modification of the order               handle up to 1,000 pounds of potatoes
                                                red skinned, round type or long type
                                                                                                        or to be exempted therefrom. A handler                without regard to the order’s grade, size,
                                                potatoes that continue to remain at a
                                                                                                        is afforded the opportunity for a hearing             maturity, and inspection requirements.
                                                500 pound limit, to be imported without
                                                                                                        on the petition. After the hearing, USDA                 At its meeting on July 18, 2013, the
                                                regard to the import regulations. This
                                                                                                        would rule on the petition. The Act                   Committee unanimously recommended
                                                action is expected to benefit producers,
                                                                                                        provides that the district court of the               increasing the order’s minimum
                                                handlers, and importers.
                                                                                                        United States in any district in which                quantity exception from 1,000 to 2,000
                                                DATES: Effective date: April 27, 2015.                  the handler is an inhabitant, or has his              pounds. The recommendation was made
                                                FOR FURTHER INFORMATION CONTACT: Sue                    or her principal place of business, has               at the request of producers and handlers
                                                Coleman, Marketing Specialist, or Gary                  jurisdiction to review USDA’s ruling on               who wanted greater flexibility in
                                                D. Olson, Regional Director, Northwest                  the petition, provided an action is filed             distributing smaller quantities of
                                                Marketing Field Office, Marketing Order                 not later than 20 days after the date of              potatoes. In its deliberations, the
                                                and Agreement Division, Fruit and                       the entry of the ruling.                              Committee commented that 2,000
                                                Vegetable Program, AMS, USDA;                              There are no administrative                        pounds is consistent with the current
                                                Telephone: (503) 326–2724, Fax: (503)                   procedures which must be exhausted                    weight of a pallet of potatoes. One pallet
                                                326–7440, or Email: Sue.Coleman@                        prior to any judicial challenge to the                is typically the smallest lot of potatoes
                                                ams.usda.gov or GaryD.Olson@                            provisions of import regulations issued               distributed, since most delivery vehicles
                                                ams.usda.gov.                                           under section 8e of the Act.                          are now capable of transporting at least
                                                   Small businesses may request                            This final rule revises the minimum                2,000 pounds.
                                                information on complying with this                      quantity exception currently prescribed                  Handlers also feel that the value of
                                                regulation by contacting Jeffrey Smutny,                in the handling regulation for potatoes               one pallet of potatoes does not warrant
                                                Marketing Order and Agreement                           handled under Marketing Order No.                     the cost of complying with the order’s
                                                Division, Fruit and Vegetable Program,                  948. This rule increases the quantity of              regulations. Based on an estimated
                                                AMS, USDA, 1400 Independence                            potatoes that may be handled without                  average f.o.b. price of $12.60, the value
                                                Avenue SW., STOP 0237, Washington,                      regard to the order’s handling regulation             of one pallet of potatoes is
mstockstill on DSK4VPTVN1PROD with RULES




                                                DC 20250–0237; Telephone: (202) 720–                    from 1,000 to 2,000 pounds. Relaxing                  approximately $252.00. Increasing the
                                                2491, Fax: (202) 720–8938, or Email:                    the minimum quantity exception is                     minimum quantity exception from 1,000
                                                Jeffrey.Smutny@ams.usda.gov.                            expected to benefit producers, handlers,              to 2,000 pounds of potatoes allows a
                                                SUPPLEMENTARY INFORMATION: This final                   and importers. The rule was                           handler to ship one pallet of potatoes
                                                rule is issued under Marketing                          unanimously recommended by the                        without regard to the order’s grade, size,
                                                Agreement No. 97 and Order No. 948,                     Committee at a meeting on July 18,                    maturity, and inspection requirements.
                                                both as amended (7 CFR part 948),                       2013.                                                 Relaxing the minimum quantity is


                                           VerDate Sep<11>2014   18:54 Apr 21, 2015   Jkt 235001   PO 00000   Frm 00003   Fmt 4700   Sfmt 4700   E:\FR\FM\22APR1.SGM   22APR1


                                                22360            Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations

                                                expected to benefit producers, handlers,                   The purpose of the RFA is to fit                   receipts of less than $7,000,000 and may
                                                and importers.                                          regulatory actions to the scale of                    be classified as small entities.
                                                  Section 8e of the Act provides that                   businesses subject to such actions in                    Canada is the major potato-producing
                                                when certain domestically produced                      order that small businesses will not be               country exporting potatoes to the United
                                                commodities, including Irish potatoes,                  unduly or disproportionately burdened.                States. In 2013, affected shipments of
                                                are regulated under a Federal marketing                 Marketing orders issued pursuant to the               potatoes imported into the United States
                                                order, imports of that commodity must                   Act, and rules issued thereunder, are                 totaled around 3,479,468
                                                meet the same or comparable grade,                      unique in that they are brought about                 hundredweight. Of that amount,
                                                size, quality, and maturity requirements.               through group action of essentially                   3,479,383 hundredweight were
                                                Whenever two or more marketing orders                   small entities acting on their own                    imported from Canada, 59
                                                regulating the same commodity                           behalf. Import regulations issued under               hundredweight were imported from
                                                produced in different areas of the                      the Act are based on those established                Ecuador, and 26 hundredweight were
                                                United States are concurrently in effect,               under Federal marketing orders.                       imported from Peru.
                                                the importation into the United States of                  There are approximately 80 handlers                   This final rule revises the quantity of
                                                any such commodity shall be prohibited                  of Colorado Area No. 2 potatoes subject               potatoes that may be handled without
                                                unless it complies with the grade, size,                to regulation under the order and                     regard to the requirements of
                                                quality and maturity provisions of the                  approximately 180 producers in the                    § 948.386(a), (b), and (c) of the order
                                                order which, as determined by the                       regulated production area. There are                  from 1,000 to 2,000 pounds and makes
                                                Secretary of Agriculture, regulates the                 approximately 240 importers of                        a corresponding change to the potato
                                                commodity produced in the area with                     potatoes. Small agricultural service                  import regulation. At the July 18, 2013
                                                which the imported commodity is in                      firms (handlers and importers) are                    meeting, the Committee unanimously
                                                most direct competition (7 U.S.C. 608e–                 defined by the Small Business                         recommended increasing the minimum
                                                1(a)). Section 980.1(a)(2)(ii) of the                   Administration (SBA) as those having                  quantity exception to be consistent with
                                                Vegetable Import Regulations specifies                  annual receipts of less than $7,000,000,              the approximate weight of one pallet of
                                                that imported round-type potatoes,                      and small agricultural producers are                  potatoes. Authority for the
                                                except red-skinned, round type                          defined as those having annual receipts               establishment and modification of a
                                                potatoes, are in most direct competition                of less than $750,000 (13 CFR 121.201).               minimum quantity exception is
                                                with potatoes of the same type produced                    During the 2011–2012 fiscal period,                provided in § 948.22(b)(2) of the order.
                                                in the area covered by Marketing Order                  the most recent for which statistics are              This final rule amends the provisions in
                                                948. Since this action increases the                    available, 15,072,963 hundredweight of                §§ 948.386(f) and 980.1(c). The change
                                                minimum quantity exemption under the                    Colorado Area No. 2 potatoes were                     in the import regulation is required
                                                domestic handling regulations, a                        inspected under the order and sold into               under section 8e of the Act.
                                                corresponding change to the import                      the fresh market. Based on an estimated                  This action is not expected to increase
                                                regulations must also be considered.                    average f.o.b. price of $12.60 per                    the costs associated with the order’s
                                                  Minimum grade, size, quality, and                     hundredweight, the Committee                          requirements or the potato import
                                                maturity requirements for Irish potatoes                estimates that 66 Area No. 2 handlers,                regulation. Rather, it is anticipated that
                                                imported into the United States are                     or about 83 percent, had annual receipts              this change will have a beneficial
                                                currently in effect under § 980.1 (7 CFR                of less than $7,000,000. In view of the               impact. The Committee believes it will
                                                980.1). The minimum quantity                            foregoing, the majority of Colorado Area              provide greater flexibility in the
                                                exemption is specified in § 980.1(c). The               No. 2 potato handlers may be classified               distribution of small quantities of
                                                exemption for red skinned, round type                   as small entities.                                    potatoes. Currently, the distribution of
                                                or long type potatoes will remain at a                     In addition, based on information                  potatoes between 1,000 and 2,000
                                                500 pound limit as provided in                          provided by the National Agricultural                 pounds requires an inspection and
                                                Marketing Orders 946 and 945,                           Statistics Service, the average producer              certification that the product conforms
                                                respectively. This rule increases the                   price for the 2011 Colorado fall potato               to the grade, size, and maturity
                                                quantity for all other round type                       crop was $10.70 per hundredweight.                    requirements of the order. This
                                                potatoes that may be imported without                   Multiplying $10.70 by the shipment                    translates into a cost for handlers and
                                                regard to the import regulation                         quantity of 15,072,963 hundredweight                  importers of both time and inspection
                                                requirements from 1,000 to 2,000                        yields an annual crop revenue estimate                fees, which is high in relation to the
                                                pounds. The metric equivalent for 1,000                 of $161,280,704. The average annual                   small value (approximately $252.00 per
                                                pounds is 453.592 kilograms and 2,000                   fresh potato revenue for each of the 180              pallet) of these transactions. This action
                                                pounds is 907.185 kilograms. The                        Colorado Area No. 2 potato producers is               will allow shipments up to 2,000
                                                increase in the minimum quantity                        therefore calculated to be approximately              pounds of potatoes without regard to the
                                                exemption for imports of potatoes will                  $896,000 ($161,280,704 divided by 180),               order’s grade, size, maturity, and
                                                have a beneficial impact on importers.                  which is greater than the SBA threshold               inspection requirements and the related
                                                This rule will provide flexibility in the               of $750,000. Consequently, on average,                costs. The benefits for this final rule are
                                                importation and distribution of smaller                 many of the Colorado Area No. 2 potato                expected to be equally available to all
                                                quantities of potatoes.                                 producers may not be classified as small              fresh potato producers, handlers, and
                                                                                                        entities.                                             importers, regardless of their size.
                                                Final Regulatory Flexibility Analysis
                                                                                                           Information from the Foreign                          As an alternative to the proposal, the
                                                   Pursuant to requirements set forth in                Agricultural Service, USDA, indicates                 Committee discussed leaving the
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                                                the Regulatory Flexibility Act (RFA) (5                 that the dollar value of imports of the               handling regulation unchanged. The
                                                U.S.C. 601–612), the Agricultural                       type of potatoes affected by this rule                Committee rejected this idea because a
                                                Marketing Service (AMS) has                             ranged from approximately $55.8                       pallet of potatoes weighs approximately
                                                considered the economic impact of this                  million in 2009 to $ 56.5 million in                  2,000 pounds and the 1,000 pound
                                                action on small entities. Accordingly,                  2013. Using these values, the majority of             minimum quantity exception did not
                                                AMS has prepared this final regulatory                  importers of the type of potatoes                     accommodate this size shipment. No
                                                flexibility analysis.                                   affected by this rule would have annual               other alternatives were discussed.


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                                                                 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations                                               22361

                                                   In accordance with the Paperwork                     the FOR FURTHER INFORMATION CONTACT                       Authority: 7 U.S.C. 601–674.
                                                Reduction Act of 1995 (44 U.S.C.                        section.                                              ■ 4. In § 980.1, paragraph (c) is revised
                                                Chapter 35), the order’s information                       In accordance with section 8e of the               to read as follows:
                                                collection requirements have been                       Act, the United States Trade
                                                previously approved by the Office of                    Representative has concurred with the                 § 980.1    Import regulations; Irish potatoes.
                                                Management and Budget (OMB) and                         issuance of this final rule.                          *     *    *     *    *
                                                assigned OMB No. 0581–0178 (Generic                        After consideration of all relevant                  (c) Minimum quantities. Any
                                                Vegetable and Specialty Crops). No                      matter presented, including the                       importation which, in the aggregate,
                                                changes in those requirements as a                      information and recommendation                        does not exceed 500 pounds of red
                                                result of this action are necessary.                    submitted by the Committee and other                  skinned, round type or long type
                                                Should any changes become necessary,                    available information, it is hereby found             potatoes, or 2,000 pounds for all other
                                                they would be submitted to OMB for                      that this rule, as hereinafter set forth,             round type potatoes, may be imported
                                                approval.                                               will tend to effectuate the declared                  without regard to the provisions of this
                                                   This final rule relaxes the minimum                  policy of the Act.                                    section.
                                                quantity exception under the order from                    It is further found that good cause                *     *    *     *    *
                                                1,000 to 2,000 pounds. Accordingly, this                exists for not postponing the effective
                                                                                                        date of this rule until 30 days after                   Dated: April 16, 2015.
                                                action will not impose any additional
                                                                                                        publication in the Federal Register (5                Rex A. Barnes,
                                                reporting or recordkeeping requirements
                                                                                                        U.S.C. 553) because handlers are already              Associate Administrator, Agricultural
                                                on either small or large Colorado Area
                                                                                                        shipping potatoes from the 2014–2015                  Marketing Service.
                                                No. 2 potato handlers. As with all
                                                                                                        crop and handlers want to take                        [FR Doc. 2015–09289 Filed 4–21–15; 8:45 am]
                                                Federal marketing order programs,
                                                reports and forms are periodically                      advantage of the relaxation as soon as                BILLING CODE 3410–02–P

                                                reviewed to reduce information                          possible. Further, handlers are aware of
                                                requirements and duplication by                         this rule, which was recommended at a
                                                                                                        public meeting. Also, a 60-day comment                DEPARTMENT OF AGRICULTURE
                                                industry and public sector agencies.
                                                   As noted in the initial regulatory                   period was provided for in the proposed
                                                                                                        rule and no comments were received.                   Agricultural Marketing Service
                                                flexibility analysis, USDA has not
                                                identified any relevant Federal rules                   List of Subjects                                      7 CFR Part 1212
                                                that duplicate, overlap or conflict with
                                                this final rule.                                        7 CFR Part 948                                        [Document Number AMS–FV–14–0045]
                                                   AMS is committed to complying with                     Marketing agreements, Potatoes,
                                                the E-Government Act, to promote the                    Reporting and recordkeeping                           Honey Packers and Importers
                                                use of the internet and other                           requirements.                                         Research, Promotion, Consumer
                                                information technologies to provide                                                                           Education and Information Order;
                                                                                                        7 CFR Part 980                                        Assessment Rate Increase
                                                increased opportunities for citizen
                                                access to Government information and                      Food grades and standards, Imports,                 AGENCY:  Agricultural Marketing Service,
                                                services, and for other purposes.                       Marketing agreements, Onions, Potatoes,               USDA.
                                                   In addition, the Committee’s meeting                 Tomatoes.
                                                                                                                                                              ACTION: Final rule.
                                                was widely publicized throughout the                      For the reasons set forth above, 7 CFR
                                                Colorado Area No. 2 potato industry and                 parts 948 and 980 are amended as                      SUMMARY:    This rule amends the Honey
                                                all interested persons were invited to                  follows:                                              Packers and Importers Research,
                                                attend the meeting and participate in                                                                         Promotion, Consumer Education and
                                                Committee deliberations on all issues.                  PART 948—IRISH POTATOES GROWN                         Information Order (Order) to increase
                                                Like all Committee meetings, the July                   IN COLORADO                                           the assessment rate from $0.01 per
                                                18, 2013, meeting was a public meeting                  ■ 1. The authority citation for 7 CFR                 pound to $0.015 per pound on honey
                                                and all entities, both large and small,                 part 948 continues to read as follows:                and honey products, over a two-year
                                                were able to express views on this issue.                                                                     period. The Order limits an increase in
                                                   A proposed rule concerning this                          Authority: 7 U.S.C. 601–674.                      the assessment rate to no more than one-
                                                action was published in the Federal                     ■ 2. Amend § 948.386(f) to read as                    quarter cent per pound per year. Thus,
                                                Register on October 6, 2014 (79 FR                      follows:                                              the rate will increase to $0.0125 per
                                                60117). Copies of the rule were made                    § 948.386    Handling regulation.                     pound for the period January 1 through
                                                available to all interested Colorado                                                                          December 31, 2015, and to $0.015 per
                                                potato producers and handlers. Finally,                 *     *      *     *     *                            pound on and after January 1, 2016.
                                                                                                          (f) Minimum quantity. For purposes of
                                                the rule was made available through the                                                                       This increase was unanimously
                                                                                                        regulation under this part, each person
                                                Internet by USDA and the Office of the                                                                        recommended by the Honey Packers
                                                                                                        may handle up to but not to exceed
                                                Federal Register. A 60-day comment                                                                            and Importers Board (Board) which
                                                                                                        2,000 pounds of potatoes without regard
                                                period ending December 5, 2014, was                                                                           administers the Order with oversight by
                                                                                                        to the requirements of paragraphs (a),
                                                provided to allow interested persons to                                                                       the U.S. Department of Agriculture
                                                                                                        (b), and (c) of this section, but this
                                                respond to the proposal. No comments                                                                          (USDA). Under the program,
                                                                                                        exception shall not apply to any
                                                were received.                                                                                                assessments are collected from first
                                                                                                        shipment which exceeds 2,000 pounds
                                                   A small business guide on complying                                                                        handlers (packers) and importers and
                                                                                                        of potatoes.
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                                                with fruit, vegetable, and specialty crop                                                                     used for research and promotion
                                                marketing agreements and orders may                     *     *      *     *     *                            projects designed to maintain and
                                                be viewed at: http://www.ams.usda.gov/                                                                        expand the market for honey and honey
                                                                                                        PART 980—VEGETABLES; IMPORT
                                                MarketingOrdersSmallBusinessGuide.                                                                            products in the United States and
                                                                                                        REGULATIONS
                                                Any questions about the compliance                                                                            abroad. Additional funds will allow the
                                                guide should be sent to Jeffrey Smutny                  ■ 3. The authority citation for 7 CFR                 Board to expand its production research
                                                at the previously mentioned address in                  part 980 continues to read as follows:                activities and promotional efforts. The


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Document Created: 2015-12-16 08:27:59
Document Modified: 2015-12-16 08:27:59
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
ContactSue Coleman, Marketing Specialist, or Gary D. Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: [email protected] or [email protected]
FR Citation80 FR 22359 
CFR Citation7 CFR 948
7 CFR 980
CFR AssociatedMarketing Agreements; Potatoes; Reporting and Recordkeeping Requirements; Food Grades and Standards; Imports; Onions and Tomatoes

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