83_FR_53206 83 FR 53003 - Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida and Imported Grapefruit; Change in Grade and Size Requirements

83 FR 53003 - Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida and Imported Grapefruit; Change in Grade and Size Requirements

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 203 (October 19, 2018)

Page Range53003-53007
FR Document2018-22758

This proposed rule invites comments on a recommendation from the Citrus Administrative Committee (Committee) to relax the minimum grade requirements for oranges and tangerines, remove grade and size requirements for Ambersweet and Temple oranges, and simplify the tables outlining the grade and size requirements for interstate and export shipments currently prescribed under the marketing order for oranges, grapefruit, tangerines, and pummelos grown in Florida. A corresponding change would be made to the grapefruit import regulation as required by section 8e of the Agricultural Marketing Agreement Act of 1937.

Federal Register, Volume 83 Issue 203 (Friday, October 19, 2018)
[Federal Register Volume 83, Number 203 (Friday, October 19, 2018)]
[Proposed Rules]
[Pages 53003-53007]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-22758]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / 
Proposed Rules

[[Page 53003]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905 and 944

[Doc. AMS-SC-18-0046; SC18-905-3 PR]


Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida 
and Imported Grapefruit; Change in Grade and Size Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule invites comments on a recommendation from 
the Citrus Administrative Committee (Committee) to relax the minimum 
grade requirements for oranges and tangerines, remove grade and size 
requirements for Ambersweet and Temple oranges, and simplify the tables 
outlining the grade and size requirements for interstate and export 
shipments currently prescribed under the marketing order for oranges, 
grapefruit, tangerines, and pummelos grown in Florida. A corresponding 
change would be made to the grapefruit import regulation as required by 
section 8e of the Agricultural Marketing Agreement Act of 1937.

DATES: Comments must be received by November 19, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. All 
comments should reference the document number and the date and page 
number of this issue of the Federal Register and will be made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours, or can be viewed at: http://www.regulations.gov. All 
comments submitted in response to this rule will be included in the 
record and will be made available to the public. Please be advised that 
the identity of the individuals or entities submitting the comments 
will be made public on the internet at the address provided above.

FOR FURTHER INFORMATION CONTACT: Abigail Campos, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes amendments to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposed rule is issued under 
Marketing Order No. 905, as amended (7 CFR part 905), regulating the 
handling of oranges, grapefruit, tangerines, and pummelos grown in 
Florida. Part 905 (referred to as the ``Order'') is effective under the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.'' The Committee locally 
administers the Order and is comprised of producers and handlers of 
citrus operating within the area of production, and a public member.
    This rule is also issued under section 8e of the Act, which 
provides that whenever certain specified commodities, including 
grapefruit, are regulated under a Federal marketing order, imports of 
these commodities into the United States are prohibited unless they 
meet the same or comparable grade, size, quality, or maturity 
requirements as those in effect for the domestically produced 
commodities.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed rule does not meet the definition 
of a significant regulatory action, it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have retroactive 
effect.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    There are no administrative procedures that must be exhausted prior 
to any judicial challenge to the provisions of import regulations 
issued under section 8e of the Act.
    This proposed rule invites comments on changes to the grade and 
size requirements under the Order. This proposal would relax the 
minimum grade requirements for oranges and Fall-glo, Sunburst, and 
Honey tangerines from U.S. No. 1 to U.S. No. 2. This action would also 
remove grade and size requirements for Ambersweet and Temple oranges 
and simplify the tables outlining the grade and size requirements for 
interstate and export shipments. These actions would maximize shipments 
by allowing more citrus to be shipped to the fresh market and would 
help increase returns to growers and handlers. These changes

[[Page 53004]]

were unanimously recommended by the Committee on April 26, 2018.
    Section 905.52 provides authority to establish minimum grade 
requirements for Florida citrus. Section 905.306 specifies, in part, 
the minimum grade requirements for citrus. Requirements for domestic 
shipments are specified in Sec.  905.306 in Table I of paragraph (a) 
and for export shipments in Table II of paragraph (b). Minimum grade 
and size requirements for grapefruit imported into the United States 
are currently in effect pursuant to Sec.  944.106.
    The Committee met on April 26, 2018, and discussed ways to provide 
additional supplies of Florida citrus to the marketplace and increase 
grower and handler returns. Committee members recognized that with the 
ongoing impacts of citrus greening, some adjustments should be made to 
assist growers and handlers and provide for the utilization of 
additional volume of Florida citrus in the fresh market.
    Citrus greening has caused the steady decline in Florida citrus 
production and has spread to all citrus producing counties in Florida. 
From the 2011-12 to the 2016-17 season, citrus greening has reduced 
Florida's orange production by 53 percent and tangerine production by 
67 percent. During the same period, fresh shipments have declined by 54 
percent for oranges and 80 percent for tangerines.
    The industry suffered additional production losses as a result of 
damage from Hurricane Irma in September 2017. According to USDA`s 
National Agricultural Statistics Service (NASS), production for the 
2016-17 season totaled 68.8 million boxes for oranges and 1.6 million 
boxes for tangerines. For the 2017-18 season, the forecasted production 
is expected to decrease by 34 percent for oranges and 53 percent for 
tangerines. Also, the citrus trees may take several seasons to recover 
from the hurricane damage, further impacting production and supply.
    Given the decrease in production, the Committee recommended 
relaxing the minimum grade requirements for oranges and Fallglo, 
Sunburst, and Honey tangerines from U.S. No. 1 to U.S. No. 2. During 
the discussion of this change, one Committee member stated the 
reduction in grade could help address the limited volumes of fruit 
available in the market. It was also stated that there was a good fresh 
juice market for the U.S. No. 2 orange and that this change could help 
promote the sale of more oranges for the fresh juice market.
    For tangerines, it was stated that the very limited volume of 
tangerines being produced in Florida was causing a supply concern for 
shippers. Members agreed that lowering the grade for tangerines would 
promote increased shipments.
    The Committee believes relaxing the grade from U.S. No. 1 to U.S. 
No. 2 for oranges and Fallglo, Sunburst, and Honey tangerines would 
allow growers and handlers to utilize a greater percentage of the crop 
and would make more fruit available for shipment. By implementing this 
change, the industry would be able to put an additional 300,000 cartons 
or more into the fresh market, helping to maximize shipments and to 
increase grower and handler returns.
    The Committee also discussed the limited production of Ambersweet 
and Temple oranges (also known as Royal tangerines). In the past, the 
Committee has considered removing the grade and size requirements for 
varieties with limited commercial value due to the very limited 
supplies available for shipment. Last season, Ambersweet oranges 
accounted for 4,280 cartons and Temple oranges accounted for a total of 
40,227 cartons sold. Given the decline in production, the Committee 
recommended removing restrictions on grade and size for Ambersweet and 
Temple oranges to maximize remaining shipments.
    The Committee also recommended simplifying Table I and Table II in 
Sec.  905.306, which outline the grade and size requirements for 
interstate and export shipments, to have them better reflect current 
industry requirements. Over the past few years, the Committee has made 
ongoing changes to both grade and size for a number of Florida citrus 
varieties. These changes have moved grade and size requirements toward 
greater commonality for both oranges and grapefruit.
    With the grade change considered above, there would be no 
differences in grade and size requirements for the various types and 
varieties of oranges listed in the table. Therefore, the Committee 
recommended that ``Early and midseason'' oranges be consolidated with 
``Navel'' and ``Valencia and other late type'' oranges into one 
``Oranges'' classification. For grapefruit, the grade and size 
requirements for the two listed categories are already the same. 
``Seedless, red'' and ``Seedless, except red'' would be combined into 
one ``Grapefruit, seedless'' classification.
    In addition, the Committee recommended removing the ``Regulation 
Period'' column from the two tables. With the exception of the dates 
listed in Table I for Valencia and other late type oranges, the various 
dates listed are no longer applicable and are not reflective of the 
current industry. The grade change proposed for oranges would also 
negate the need for the current dates listed for Valencia and other 
late type oranges. The Committee made these recommendations to simplify 
the tables to reflect changes in the industry.
    Section 8e of the Act provides that when certain domestically 
produced commodities, including grapefruit, are regulated under a 
Federal marketing order, imports of that commodity must meet the same 
or comparable grade, size, quality, and maturity requirements. Because 
this proposed rule would combine ``Seedless, red'' and ``Seedless, 
except red'' into one classification for grapefruit in the two domestic 
handling regulation tables as well as remove the ``Regulation Period'' 
column from those tables, a corresponding change to the table in the 
grapefruit import regulations would be required.
    Further, two minor administrative changes would be made to Sec.  
944.106. In Sec.  944.106(c), the reference to ``Sec.  905.306'' would 
be revised to read ``Sec.  905.306(a) through (d)'' so that the 
requirements specifically applicable to imports are more clearly 
defined. Additionally, Sec.  944.106(d) would be updated to reflect the 
revised name of the Agricultural Marketing Service (AMS) program area 
that oversees federal marketing orders.
    The Committee also recommended establishing new reporting 
requirements under the Order. That change is being considered under a 
separate rulemaking action.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of 
this action on small entities. Accordingly, AMS has prepared this 
initial 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 the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 20 handlers of Florida citrus who are 
subject to regulation under the Order and approximately 500 citrus 
producers in the regulated area. There are approximately 50 citrus 
importers. Small agricultural service firms are defined by the Small 
Business

[[Page 53005]]

Administration (SBA) as those having annual receipts of less than 
$7,500,000, and small agricultural producers are defined as those 
having annual receipts of less than $750,000 (13 CFR 121.201).
    According to data from NASS, the industry, and the Committee, the 
weighted average f.o.b. price for Florida citrus for the 2016-17 season 
was approximately $15.20 per carton with total shipments of 12.6 
million cartons. Using the number of handlers, and assuming a normal 
distribution, the majority of handlers have average annual receipts of 
more than $7,500,000 ($15.20 times 12.6 million equals $191,520,000 
divided by 20 handlers equals $9,576,000 per handler).
    In addition, based on the NASS data, the weighted average grower 
price for the 2016-17 season was around $8.30 per carton of citrus. 
Based on grower price, shipment data, and the total number of Florida 
citrus growers, and assuming a normal distribution, the average annual 
grower revenue is below $750,000 ($8.30 times 12.6 million cartons 
equals $104,580,000 divided by 500 growers equals $209,160 per grower).
    South Africa, Peru, and Mexico are the major grapefruit-producing 
countries exporting grapefruit to the United States. In 2016, shipments 
of grapefruit imported into the United States totaled approximately 
24,000 metric tons. Information from USDA's Foreign Agricultural 
Service indicates that the dollar value of imported fresh grapefruit 
was approximately $11.2 million in 2016. Using this value and the 
number of importers (approximately 50), most importers would have 
annual receipts of less than $7,500,000 for grapefruit.
    Based on the previously described estimates, the majority of 
handlers of Florida citrus may be classified as large entities, while 
the majority of growers and importers may be classified as small 
entities.
    This proposed rule would relax the minimum grade requirements for 
oranges and tangerines from U.S. No. 1 to U.S. No. 2, remove grade and 
size requirements for Ambersweet and Temple oranges, and simplify the 
tables outlining the grade and size requirements for interstate and 
export shipments. These changes would help maximize shipments by 
allowing more citrus to be shipped to the fresh market and would 
provide some additional fruit to address the losses resulting from 
citrus greening and the September 2017 hurricane. This proposed rule 
would revise Sec.  905.306. Authority for this change is provided in 
Sec.  905.52. This proposed rule would also change Sec.  944.106 in the 
grapefruit import regulation and is required by section 8e of the Act.
    This action is not expected to increase the costs associated with 
the Order's requirements or the grapefruit import regulation. Rather, 
it is anticipated that this action would have a beneficial impact. 
Reducing the grade requirements would make additional fruit available 
for shipment to the fresh market, provide an outlet for fruit that may 
otherwise go unharvested, and afford more opportunity to meet consumer 
demand. These changes would provide additional fruit to fill the 
shortage caused by citrus greening and by Hurricane Irma. By maximizing 
shipments, this action would help provide additional returns to growers 
and handlers. Further, removing the grade and size requirements for 
Ambersweet and Temple oranges would also help maximize shipments of 
these varieties impacted by declining production.
    The benefits of this rule would also be equally available to all 
growers, handlers, and importers, regardless of their size.
    An alternative to this action would be to maintain the current 
minimum grade requirements for domestic shipments of oranges and 
tangerines. However, leaving the requirements unchanged would not make 
additional fruit available for shipment. Following the significant 
damage experienced by the industry from citrus greening and the 
September 2017 hurricane, maximizing shipments would help provide 
additional returns to growers and handlers. Therefore, this alternative 
was rejected.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0189, Fruit Crops. 
No changes in those requirements are necessary as a result of this 
action. Should any changes become necessary, they would be submitted to 
OMB for approval.
    This proposed rule will not impose any additional reporting or 
recordkeeping requirements on either small or large Florida citrus 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    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, USDA has not identified any relevant Federal rules 
that duplicate, overlap, or conflict with this rule.
    The Committee's meeting was widely publicized throughout the citrus 
industry, and all interested persons were invited to attend the meeting 
and participate in Committee deliberations. Like all Committee 
meetings, the April 26, 2018, meeting was a public meeting, and all 
entities, both large and small, were able to express their views on 
this issue. Interested persons are invited to submit comments on this 
proposed rule, including the regulatory and information collection 
impacts of this action on small businesses.
    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/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this proposed rule.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

List of Subjects

7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Pummelos, Reporting and 
recordkeeping requirements, Tangelos, Tangerines.

7 CFR Part 944

    Avocados, Food grades and standards, Grapefruit, Grapes, Imports, 
Kiwifruit, Limes, Olives, Oranges.

    For the reasons set forth in the preamble, parts 905 and 944 are 
proposed to be amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND PUMMELOS GROWN IN 
FLORIDA

0
1. The authority citation for part 905 and part 944 continues to read 
as follows:

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

0
2. Amend Sec.  905.306 by

[[Page 53006]]

0
a. Revising paragraph (a), Table I to paragraph (a), paragraph (b), and 
Table II to paragraph (b); and
0
b. Redesignating Table III as Table III to paragraph (e) and in 
paragraph (e)(1) adding the words ``to paragraph (e)'' after ``Table 
III.'':


Sec.  905.306   Orange, Grapefruit, Tangerine and Tangelo Regulation.

    (a) No handler shall ship between the production area and any point 
outside thereof, in the 48 contiguous States and the District of 
Columbia of the United States, any variety of fruit listed in column 
(1) of Table I to paragraph (a), except for Ambersweet and Temple, 
unless such variety meets the applicable minimum grade and size (with 
tolerances for size as specified in paragraph (c) of this section) 
specified for such variety in columns (2) and (3) of Table I to 
paragraph (a): Provided, That all grapefruit meet the minimum maturity 
requirements specified in paragraph (e) of this section.

                        Table I to Paragraph (a)
------------------------------------------------------------------------
                                                        Minimum diameter
             Variety                  Minimum grade         (inches)
(1)                                (2)................               (3)
------------------------------------------------------------------------
Oranges..........................  U.S. No. 2.........            2-4/16
Grapefruit, Seedless.............  U.S. No. 1.........                 3
Tangerines:
    Fallglo......................  U.S. No. 2.........            2-6/16
    Honey........................  U.S. No. 2.........            2-6/16
    Sunburst.....................  U.S. No. 2.........            2-6/16
Tangelos.........................  U.S. No. 1.........            2-8/16
------------------------------------------------------------------------

    (b) No handler shall ship to any destination outside the 48 
contiguous States and the District of Columbia of the United States any 
variety of fruit listed in column (1) of Table II to paragraph (b), 
except for Ambersweet and Temple, unless such variety meets the 
applicable minimum grade and size (with tolerances for size as 
specified in paragraph (c) of this section) specified for such variety 
in columns (2) and (3) of Table II to paragraph (b): Provided, That all 
grapefruit meet the minimum maturity requirements specified in 
paragraph (e) of this section.

                        Table II to Paragraph (b)
------------------------------------------------------------------------
                                                        Minimum diameter
             Variety                  Minimum grade         (inches)
(1)                                (2)................               (3)
------------------------------------------------------------------------
Oranges..........................  U.S. No. 2.........            2-4/16
Grapefruit, Seedless.............  U.S. No. 1.........                 3
Tangerines:
    Fallglo......................  U.S. No. 2.........            2-6/16
    Honey........................  U.S. No. 2.........            2-6/16
    Sunburst.....................  U.S. No. 2.........            2-6/16
Tangelos.........................  U.S. No. 1.........            2-8/16
------------------------------------------------------------------------

* * * * *

PART 944--FRUITS; IMPORT REGULATIONS

0
3. In Sec.  944.106
0
a. Revise the table in paragraph (a) and designate it as Table 1 to 
Sec.  944.106;
0
 b. Revise paragraph (c) and the first sentence in paragraph (d).
    The revisions to read as follows:


Sec.  944.106   Grapefruit import regulation.

    (a) * * *

                        Table 1 to Sec.   944.106
------------------------------------------------------------------------
                                                        Minimum diameter
    Grapefruit classification         Minimum grade         (inches)
(1)                                (2)................               (3)
------------------------------------------------------------------------
Grapefruit, seedless.............  U.S. No. 1.........                 3
------------------------------------------------------------------------

* * * * *
    (c) Terms and tolerances pertaining to grade and size requirements, 
which are defined in the United States Standards for Grades of Florida 
Grapefruit (7 CFR 51.750-51.784), and in Marketing Order No. 905 (7 CFR 
905.18 and 905.306(a) through (d)), shall be applicable herein.
    (d) The Federal or Federal-State Inspection Service, Specialty 
Crops Program, Agricultural Marketing Service, United States Department 
of Agriculture, is designated as the governmental inspection service 
for certifying the grade, size, quality, and

[[Page 53007]]

maturity of grapefruit imported into the United States. * * *
* * * * *

    Dated: October 15, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-22758 Filed 10-18-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                53003

                                                Proposed Rules                                                                                                Federal Register
                                                                                                                                                              Vol. 83, No. 203

                                                                                                                                                              Friday, October 19, 2018



                                                This section of the FEDERAL REGISTER                    rule will be included in the record and               that the Office of Management and
                                                contains notices to the public of the proposed          will be made available to the public.                 Budget (OMB) exempted from Executive
                                                issuance of rules and regulations. The                  Please be advised that the identity of the            Order 12866 review. Additionally,
                                                purpose of these notices is to give interested          individuals or entities submitting the                because this proposed rule does not
                                                persons an opportunity to participate in the            comments will be made public on the                   meet the definition of a significant
                                                rule making prior to the adoption of the final
                                                rules.
                                                                                                        internet at the address provided above.               regulatory action, it does not trigger the
                                                                                                        FOR FURTHER INFORMATION CONTACT:                      requirements contained in Executive
                                                                                                        Abigail Campos, Marketing Specialist,                 Order 13771. See OMB’s Memorandum
                                                DEPARTMENT OF AGRICULTURE                               or Christian D. Nissen, Regional                      titled ‘‘Interim Guidance Implementing
                                                                                                        Director, Southeast Marketing Field                   Section 2 of the Executive Order of
                                                Agricultural Marketing Service                          Office, Marketing Order and Agreement                 January 30, 2017, titled ‘Reducing
                                                                                                        Division, Specialty Crops Program,                    Regulation and Controlling Regulatory
                                                7 CFR Parts 905 and 944                                 AMS, USDA; Telephone: (863) 324–                      Costs’ ’’ (February 2, 2017).
                                                [Doc. AMS–SC–18–0046; SC18–905–3 PR]                    3375, Fax: (863) 291–8614, or Email:                     This proposed rule has been reviewed
                                                                                                        Abigail.Campos@ams.usda.gov or                        under Executive Order 12988, Civil
                                                Oranges, Grapefruit, Tangerines, and                    Christian.Nissen@ams.usda.gov.                        Justice Reform. This rule is not intended
                                                Pummelos Grown in Florida and                              Small businesses may request                       to have retroactive effect.
                                                Imported Grapefruit; Change in Grade                    information on complying with this
                                                                                                                                                                 The Act provides that administrative
                                                and Size Requirements                                   regulation by contacting Richard Lower,
                                                                                                                                                              proceedings must be exhausted before
                                                                                                        Marketing Order and Agreement
                                                AGENCY:  Agricultural Marketing Service,                                                                      parties may file suit in court. Under
                                                                                                        Division, Specialty Crops Program,
                                                USDA.                                                                                                         section 608c(15)(A) of the Act, any
                                                                                                        AMS, USDA, 1400 Independence
                                                                                                                                                              handler subject to an order may file
                                                ACTION: Proposed rule.                                  Avenue SW, STOP 0237, Washington,
                                                                                                                                                              with USDA a petition stating that the
                                                                                                        DC 20250–0237; Telephone: (202) 720–
                                                SUMMARY:    This proposed rule invites                                                                        order, any provision of the order, or any
                                                                                                        2491, Fax: (202) 720–8938, or Email:
                                                comments on a recommendation from                                                                             obligation imposed in connection with
                                                                                                        Richard.Lower@ams.usda.gov.
                                                the Citrus Administrative Committee                                                                           the order is not in accordance with law
                                                                                                        SUPPLEMENTARY INFORMATION: This                       and request a modification of the order
                                                (Committee) to relax the minimum
                                                                                                        action, pursuant to 5 U.S.C. 553,                     or to be exempted therefrom. A handler
                                                grade requirements for oranges and
                                                                                                        proposes amendments to regulations                    is afforded the opportunity for a hearing
                                                tangerines, remove grade and size
                                                                                                        issued to carry out a marketing order as              on the petition. After the hearing, USDA
                                                requirements for Ambersweet and
                                                                                                        defined in 7 CFR 900.2(j). This proposed              would rule on the petition. The Act
                                                Temple oranges, and simplify the tables
                                                                                                        rule is issued under Marketing Order                  provides that the district court of the
                                                outlining the grade and size
                                                                                                        No. 905, as amended (7 CFR part 905),                 United States in any district in which
                                                requirements for interstate and export
                                                                                                        regulating the handling of oranges,                   the handler is an inhabitant, or has his
                                                shipments currently prescribed under
                                                                                                        grapefruit, tangerines, and pummelos                  or her principal place of business, has
                                                the marketing order for oranges,
                                                                                                        grown in Florida. Part 905 (referred to               jurisdiction to review USDA’s ruling on
                                                grapefruit, tangerines, and pummelos
                                                                                                        as the ‘‘Order’’) is effective under the              the petition, provided an action is filed
                                                grown in Florida. A corresponding
                                                                                                        Agricultural Marketing Agreement Act                  not later than 20 days after the date of
                                                change would be made to the grapefruit
                                                                                                        of 1937, as amended (7 U.S.C. 601–674),               the entry of the ruling.
                                                import regulation as required by section
                                                                                                        hereinafter referred to as the ‘‘Act.’’ The
                                                8e of the Agricultural Marketing                                                                                 There are no administrative
                                                                                                        Committee locally administers the
                                                Agreement Act of 1937.                                                                                        procedures that must be exhausted prior
                                                                                                        Order and is comprised of producers
                                                DATES: Comments must be received by                     and handlers of citrus operating within               to any judicial challenge to the
                                                November 19, 2018.                                      the area of production, and a public                  provisions of import regulations issued
                                                ADDRESSES: Interested persons are                       member.                                               under section 8e of the Act.
                                                invited to submit written comments                         This rule is also issued under section                This proposed rule invites comments
                                                concerning this rule. Comments must be                  8e of the Act, which provides that                    on changes to the grade and size
                                                sent to the Docket Clerk, Marketing                     whenever certain specified                            requirements under the Order. This
                                                Order and Agreement Division,                           commodities, including grapefruit, are                proposal would relax the minimum
                                                Specialty Crops Program, AMS, USDA,                     regulated under a Federal marketing                   grade requirements for oranges and Fall-
                                                1400 Independence Avenue SW, STOP                       order, imports of these commodities                   glo, Sunburst, and Honey tangerines
                                                0237, Washington, DC 20250–0237; Fax:                   into the United States are prohibited                 from U.S. No. 1 to U.S. No. 2. This
                                                (202) 720–8938; or internet: http://                    unless they meet the same or                          action would also remove grade and size
                                                www.regulations.gov. All comments                       comparable grade, size, quality, or                   requirements for Ambersweet and
amozie on DSK3GDR082PROD with PROPOSALS1




                                                should reference the document number                    maturity requirements as those in effect              Temple oranges and simplify the tables
                                                and the date and page number of this                    for the domestically produced                         outlining the grade and size
                                                issue of the Federal Register and will be               commodities.                                          requirements for interstate and export
                                                made available for public inspection in                    The Department of Agriculture                      shipments. These actions would
                                                the Office of the Docket Clerk during                   (USDA) is issuing this proposed rule in               maximize shipments by allowing more
                                                regular business hours, or can be viewed                conformance with Executive Orders                     citrus to be shipped to the fresh market
                                                at: http://www.regulations.gov. All                     13563 and 13175. This action falls                    and would help increase returns to
                                                comments submitted in response to this                  within a category of regulatory actions               growers and handlers. These changes


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                                                53004                   Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Proposed Rules

                                                were unanimously recommended by the                     supply concern for shippers. Members                  longer applicable and are not reflective
                                                Committee on April 26, 2018.                            agreed that lowering the grade for                    of the current industry. The grade
                                                   Section 905.52 provides authority to                 tangerines would promote increased                    change proposed for oranges would also
                                                establish minimum grade requirements                    shipments.                                            negate the need for the current dates
                                                for Florida citrus. Section 905.306                        The Committee believes relaxing the                listed for Valencia and other late type
                                                specifies, in part, the minimum grade                   grade from U.S. No. 1 to U.S. No. 2 for               oranges. The Committee made these
                                                requirements for citrus. Requirements                   oranges and Fallglo, Sunburst, and                    recommendations to simplify the tables
                                                for domestic shipments are specified in                 Honey tangerines would allow growers                  to reflect changes in the industry.
                                                § 905.306 in Table I of paragraph (a) and               and handlers to utilize a greater                        Section 8e of the Act provides that
                                                for export shipments in Table II of                     percentage of the crop and would make                 when certain domestically produced
                                                paragraph (b). Minimum grade and size                   more fruit available for shipment. By                 commodities, including grapefruit, are
                                                requirements for grapefruit imported                    implementing this change, the industry                regulated under a Federal marketing
                                                into the United States are currently in                 would be able to put an additional                    order, imports of that commodity must
                                                effect pursuant to § 944.106.                           300,000 cartons or more into the fresh                meet the same or comparable grade,
                                                   The Committee met on April 26, 2018,                 market, helping to maximize shipments                 size, quality, and maturity requirements.
                                                and discussed ways to provide                           and to increase grower and handler                    Because this proposed rule would
                                                additional supplies of Florida citrus to                returns.                                              combine ‘‘Seedless, red’’ and ‘‘Seedless,
                                                the marketplace and increase grower                        The Committee also discussed the                   except red’’ into one classification for
                                                and handler returns. Committee                          limited production of Ambersweet and                  grapefruit in the two domestic handling
                                                members recognized that with the                        Temple oranges (also known as Royal                   regulation tables as well as remove the
                                                ongoing impacts of citrus greening,                     tangerines). In the past, the Committee               ‘‘Regulation Period’’ column from those
                                                some adjustments should be made to                      has considered removing the grade and                 tables, a corresponding change to the
                                                assist growers and handlers and provide                 size requirements for varieties with                  table in the grapefruit import
                                                for the utilization of additional volume                limited commercial value due to the                   regulations would be required.
                                                of Florida citrus in the fresh market.                  very limited supplies available for                      Further, two minor administrative
                                                   Citrus greening has caused the steady                shipment. Last season, Ambersweet                     changes would be made to § 944.106. In
                                                decline in Florida citrus production and                oranges accounted for 4,280 cartons and               § 944.106(c), the reference to
                                                has spread to all citrus producing                      Temple oranges accounted for a total of               ‘‘§ 905.306’’ would be revised to read
                                                counties in Florida. From the 2011–12                   40,227 cartons sold. Given the decline                ‘‘§ 905.306(a) through (d)’’ so that the
                                                to the 2016–17 season, citrus greening                  in production, the Committee                          requirements specifically applicable to
                                                has reduced Florida’s orange production                 recommended removing restrictions on                  imports are more clearly defined.
                                                by 53 percent and tangerine production                  grade and size for Ambersweet and                     Additionally, § 944.106(d) would be
                                                by 67 percent. During the same period,                  Temple oranges to maximize remaining                  updated to reflect the revised name of
                                                fresh shipments have declined by 54                     shipments.                                            the Agricultural Marketing Service
                                                percent for oranges and 80 percent for                     The Committee also recommended                     (AMS) program area that oversees
                                                tangerines.                                             simplifying Table I and Table II in                   federal marketing orders.
                                                   The industry suffered additional                     § 905.306, which outline the grade and                   The Committee also recommended
                                                production losses as a result of damage                 size requirements for interstate and                  establishing new reporting requirements
                                                from Hurricane Irma in September 2017.                  export shipments, to have them better                 under the Order. That change is being
                                                According to USDA‘s National                            reflect current industry requirements.                considered under a separate rulemaking
                                                Agricultural Statistics Service (NASS),                 Over the past few years, the Committee                action.
                                                production for the 2016–17 season                       has made ongoing changes to both grade
                                                totaled 68.8 million boxes for oranges                  and size for a number of Florida citrus               Initial Regulatory Flexibility Analysis
                                                and 1.6 million boxes for tangerines. For               varieties. These changes have moved                      Pursuant to requirements set forth in
                                                the 2017–18 season, the forecasted                      grade and size requirements toward                    the Regulatory Flexibility Act (RFA) (5
                                                production is expected to decrease by                   greater commonality for both oranges                  U.S.C. 601–612), AMS has considered
                                                34 percent for oranges and 53 percent                   and grapefruit.                                       the economic impact of this action on
                                                for tangerines. Also, the citrus trees may                 With the grade change considered                   small entities. Accordingly, AMS has
                                                take several seasons to recover from the                above, there would be no differences in               prepared this initial regulatory
                                                hurricane damage, further impacting                     grade and size requirements for the                   flexibility analysis.
                                                production and supply.                                  various types and varieties of oranges                   The purpose of the RFA is to fit
                                                   Given the decrease in production, the                listed in the table. Therefore, the                   regulatory actions to the scale of
                                                Committee recommended relaxing the                      Committee recommended that ‘‘Early                    businesses subject to such actions in
                                                minimum grade requirements for                          and midseason’’ oranges be                            order that small businesses will not be
                                                oranges and Fallglo, Sunburst, and                      consolidated with ‘‘Navel’’ and                       unduly or disproportionately burdened.
                                                Honey tangerines from U.S. No. 1 to                     ‘‘Valencia and other late type’’ oranges              Marketing orders issued pursuant to the
                                                U.S. No. 2. During the discussion of this               into one ‘‘Oranges’’ classification. For              Act, and the rules issued thereunder, are
                                                change, one Committee member stated                     grapefruit, the grade and size                        unique in that they are brought about
                                                the reduction in grade could help                       requirements for the two listed                       through group action of essentially
                                                address the limited volumes of fruit                    categories are already the same.                      small entities acting on their own
                                                available in the market. It was also                    ‘‘Seedless, red’’ and ‘‘Seedless, except              behalf.
amozie on DSK3GDR082PROD with PROPOSALS1




                                                stated that there was a good fresh juice                red’’ would be combined into one                         There are approximately 20 handlers
                                                market for the U.S. No. 2 orange and                    ‘‘Grapefruit, seedless’’ classification.              of Florida citrus who are subject to
                                                that this change could help promote the                    In addition, the Committee                         regulation under the Order and
                                                sale of more oranges for the fresh juice                recommended removing the ‘‘Regulation                 approximately 500 citrus producers in
                                                market.                                                 Period’’ column from the two tables.                  the regulated area. There are
                                                   For tangerines, it was stated that the               With the exception of the dates listed in             approximately 50 citrus importers.
                                                very limited volume of tangerines being                 Table I for Valencia and other late type              Small agricultural service firms are
                                                produced in Florida was causing a                       oranges, the various dates listed are no              defined by the Small Business


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                                                                        Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Proposed Rules                                          53005

                                                Administration (SBA) as those having                    § 944.106 in the grapefruit import                    increased opportunities for citizen
                                                annual receipts of less than $7,500,000,                regulation and is required by section 8e              access to Government information and
                                                and small agricultural producers are                    of the Act.                                           services, and for other purposes.
                                                defined as those having annual receipts                    This action is not expected to increase               In addition, USDA has not identified
                                                of less than $750,000 (13 CFR 121.201).                 the costs associated with the Order’s                 any relevant Federal rules that
                                                   According to data from NASS, the                     requirements or the grapefruit import                 duplicate, overlap, or conflict with this
                                                industry, and the Committee, the                        regulation. Rather, it is anticipated that            rule.
                                                weighted average f.o.b. price for Florida               this action would have a beneficial                      The Committee’s meeting was widely
                                                citrus for the 2016–17 season was                       impact. Reducing the grade                            publicized throughout the citrus
                                                approximately $15.20 per carton with                    requirements would make additional                    industry, and all interested persons
                                                total shipments of 12.6 million cartons.                fruit available for shipment to the fresh             were invited to attend the meeting and
                                                Using the number of handlers, and                       market, provide an outlet for fruit that              participate in Committee deliberations.
                                                assuming a normal distribution, the                     may otherwise go unharvested, and                     Like all Committee meetings, the April
                                                majority of handlers have average                       afford more opportunity to meet
                                                                                                                                                              26, 2018, meeting was a public meeting,
                                                annual receipts of more than $7,500,000                 consumer demand. These changes
                                                                                                                                                              and all entities, both large and small,
                                                ($15.20 times 12.6 million equals                       would provide additional fruit to fill the
                                                                                                                                                              were able to express their views on this
                                                $191,520,000 divided by 20 handlers                     shortage caused by citrus greening and
                                                                                                                                                              issue. Interested persons are invited to
                                                equals $9,576,000 per handler).                         by Hurricane Irma. By maximizing
                                                   In addition, based on the NASS data,                                                                       submit comments on this proposed rule,
                                                                                                        shipments, this action would help
                                                the weighted average grower price for                                                                         including the regulatory and
                                                                                                        provide additional returns to growers
                                                the 2016–17 season was around $8.30                                                                           information collection impacts of this
                                                                                                        and handlers. Further, removing the
                                                per carton of citrus. Based on grower                                                                         action on small businesses.
                                                                                                        grade and size requirements for
                                                price, shipment data, and the total                     Ambersweet and Temple oranges would                      A small business guide on complying
                                                number of Florida citrus growers, and                   also help maximize shipments of these                 with fruit, vegetable, and specialty crop
                                                assuming a normal distribution, the                     varieties impacted by declining                       marketing agreements and orders may
                                                average annual grower revenue is below                  production.                                           be viewed at: http://www.ams.usda.gov/
                                                $750,000 ($8.30 times 12.6 million                         The benefits of this rule would also be            rules-regulations/moa/small-businesses.
                                                cartons equals $104,580,000 divided by                  equally available to all growers,                     Any questions about the compliance
                                                500 growers equals $209,160 per                         handlers, and importers, regardless of                guide should be sent to Richard Lower
                                                grower).                                                their size.                                           at the previously mentioned address in
                                                   South Africa, Peru, and Mexico are                      An alternative to this action would be             the FOR FURTHER INFORMATION CONTACT
                                                the major grapefruit-producing                          to maintain the current minimum grade                 section.
                                                countries exporting grapefruit to the                   requirements for domestic shipments of                   In accordance with section 8e of the
                                                United States. In 2016, shipments of                    oranges and tangerines. However,                      Act, the United States Trade
                                                grapefruit imported into the United                     leaving the requirements unchanged                    Representative has concurred with the
                                                States totaled approximately 24,000                     would not make additional fruit                       issuance of this proposed rule.
                                                metric tons. Information from USDA’s                    available for shipment. Following the                    A 30-day comment period is provided
                                                Foreign Agricultural Service indicates                  significant damage experienced by the                 to allow interested persons to respond
                                                that the dollar value of imported fresh                 industry from citrus greening and the                 to this proposal. All written comments
                                                grapefruit was approximately $11.2                      September 2017 hurricane, maximizing                  timely received will be considered
                                                million in 2016. Using this value and                   shipments would help provide                          before a final determination is made on
                                                the number of importers (approximately                  additional returns to growers and                     this matter.
                                                50), most importers would have annual                   handlers. Therefore, this alternative was
                                                receipts of less than $7,500,000 for                    rejected.                                             List of Subjects
                                                grapefruit.                                                In accordance with the Paperwork                   7 CFR Part 905
                                                   Based on the previously described                    Reduction Act of 1995 (44 U.S.C.
                                                estimates, the majority of handlers of                  Chapter 35), the Order’s information                    Grapefruit, Marketing agreements,
                                                Florida citrus may be classified as large               collection requirements have been                     Oranges, Pummelos, Reporting and
                                                entities, while the majority of growers                 previously approved by OMB and                        recordkeeping requirements, Tangelos,
                                                and importers may be classified as small                assigned OMB No. 0581–0189, Fruit                     Tangerines.
                                                entities.                                               Crops. No changes in those                            7 CFR Part 944
                                                   This proposed rule would relax the                   requirements are necessary as a result of
                                                minimum grade requirements for                          this action. Should any changes become                  Avocados, Food grades and standards,
                                                oranges and tangerines from U.S. No. 1                  necessary, they would be submitted to                 Grapefruit, Grapes, Imports, Kiwifruit,
                                                to U.S. No. 2, remove grade and size                    OMB for approval.                                     Limes, Olives, Oranges.
                                                requirements for Ambersweet and                            This proposed rule will not impose                   For the reasons set forth in the
                                                Temple oranges, and simplify the tables                 any additional reporting or                           preamble, parts 905 and 944 are
                                                outlining the grade and size                            recordkeeping requirements on either                  proposed to be amended as follows:
                                                requirements for interstate and export                  small or large Florida citrus handlers.
                                                shipments. These changes would help                     As with all Federal marketing order                   PART 905—ORANGES, GRAPEFRUIT,
                                                maximize shipments by allowing more                     programs, reports and forms are                       TANGERINES, AND PUMMELOS
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                                                citrus to be shipped to the fresh market                periodically reviewed to reduce                       GROWN IN FLORIDA
                                                and would provide some additional                       information requirements and
                                                fruit to address the losses resulting from              duplication by industry and public                    ■ 1. The authority citation for part 905
                                                citrus greening and the September 2017                  sector agencies.                                      and part 944 continues to read as
                                                hurricane. This proposed rule would                        AMS is committed to complying with                 follows:
                                                revise § 905.306. Authority for this                    the E-Government Act, to promote the
                                                                                                                                                                  Authority: 7 U.S.C. 601–674.
                                                change is provided in § 905.52. This                    use of the internet and other
                                                proposed rule would also change                         information technologies to provide                   ■   2. Amend § 905.306 by


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                                                53006                           Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Proposed Rules

                                                ■  a. Revising paragraph (a), Table I to                                  § 905.306 Orange, Grapefruit, Tangerine                                    unless such variety meets the applicable
                                                paragraph (a), paragraph (b), and Table                                   and Tangelo Regulation.                                                    minimum grade and size (with
                                                II to paragraph (b); and                                                    (a) No handler shall ship between the                                    tolerances for size as specified in
                                                ■ b. Redesignating Table III as Table III
                                                                                                                          production area and any point outside                                      paragraph (c) of this section) specified
                                                to paragraph (e) and in paragraph (e)(1)                                  thereof, in the 48 contiguous States and                                   for such variety in columns (2) and (3)
                                                                                                                          the District of Columbia of the United                                     of Table I to paragraph (a): Provided,
                                                adding the words ‘‘to paragraph (e)’’
                                                                                                                          States, any variety of fruit listed in                                     That all grapefruit meet the minimum
                                                after ‘‘Table III.’’:
                                                                                                                          column (1) of Table I to paragraph (a),                                    maturity requirements specified in
                                                                                                                          except for Ambersweet and Temple,                                          paragraph (e) of this section.

                                                                                                                                     TABLE I TO PARAGRAPH (a)
                                                                                                                                                                                                                                                    Minimum
                                                                                                                                                                                                        Minimum
                                                                                                         Variety                                                                                                                                    diameter
                                                                                                                                                                                                         grade                                      (inches)

                                                                                                            (1)                                                                                              (2)                                      (3)

                                                Oranges .....................................................................................................................   U.S. No. 2 ................................................                 2–4/16
                                                Grapefruit, Seedless ..................................................................................................         U.S. No. 1 ................................................                      3
                                                Tangerines:
                                                    Fallglo .................................................................................................................   U.S.   No.   2   ................................................           2–6/16
                                                    Honey .................................................................................................................     U.S.   No.   2   ................................................           2–6/16
                                                    Sunburst .............................................................................................................      U.S.   No.   2   ................................................           2–6/16
                                                Tangelos ....................................................................................................................   U.S.   No.   1   ................................................           2–8/16



                                                   (b) No handler shall ship to any                                       paragraph (b), except for Ambersweet                                       for such variety in columns (2) and (3)
                                                destination outside the 48 contiguous                                     and Temple, unless such variety meets                                      of Table II to paragraph (b): Provided,
                                                States and the District of Columbia of                                    the applicable minimum grade and size                                      That all grapefruit meet the minimum
                                                the United States any variety of fruit                                    (with tolerances for size as specified in                                  maturity requirements specified in
                                                listed in column (1) of Table II to                                       paragraph (c) of this section) specified                                   paragraph (e) of this section.

                                                                                                                                     TABLE II TO PARAGRAPH (b)
                                                                                                                                                                                                                                                    Minimum
                                                                                                                                                                                                        Minimum
                                                                                                         Variety                                                                                                                                    diameter
                                                                                                                                                                                                         grade                                      (inches)

                                                                                                            (1)                                                                                              (2)                                      (3)

                                                Oranges .....................................................................................................................   U.S. No. 2 ................................................                 2–4/16
                                                Grapefruit, Seedless ..................................................................................................         U.S. No. 1 ................................................                      3
                                                Tangerines:
                                                    Fallglo .................................................................................................................   U.S.   No.   2   ................................................           2–6/16
                                                    Honey .................................................................................................................     U.S.   No.   2   ................................................           2–6/16
                                                    Sunburst .............................................................................................................      U.S.   No.   2   ................................................           2–6/16
                                                Tangelos ....................................................................................................................   U.S.   No.   1   ................................................           2–8/16



                                                *        *         *        *         *                                   ■ a. Revise the table in paragraph (a)                                     § 944.106          Grapefruit import regulation.
                                                                                                                          and designate it as Table 1 to § 944.106;                                      (a) * * *
                                                PART 944—FRUITS; IMPORT                                                   ■ b. Revise paragraph (c) and the first
                                                REGULATIONS                                                               sentence in paragraph (d).
                                                ■   3. In § 944.106                                                         The revisions to read as follows:

                                                                                                                                          TABLE 1 TO § 944.106
                                                                                                                                                                                                                                                    Minimum
                                                                                                                                                                                                        Minimum
                                                                                            Grapefruit classification                                                                                                                               diameter
                                                                                                                                                                                                         grade                                      (inches)

                                                                                                            (1)                                                                                              (2)                                      (3)
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                                                Grapefruit, seedless ..................................................................................................         U.S. No. 1 ................................................                     3



                                                *     *    *     *     *                                                  51.750–51.784), and in Marketing Order                                     Program, Agricultural Marketing
                                                  (c) Terms and tolerances pertaining to                                  No. 905 (7 CFR 905.18 and 905.306(a)                                       Service, United States Department of
                                                grade and size requirements, which are                                    through (d)), shall be applicable herein.                                  Agriculture, is designated as the
                                                defined in the United States Standards                                      (d) The Federal or Federal-State                                         governmental inspection service for
                                                for Grades of Florida Grapefruit (7 CFR                                   Inspection Service, Specialty Crops                                        certifying the grade, size, quality, and


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                                                                         Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Proposed Rules                                                 53007

                                                maturity of grapefruit imported into the                Comments should be submitted by                       Commission, 100 F Street NE,
                                                United States. * * *                                    November 19, 2018.                                    Washington, DC 20549–7010.
                                                *    *     *     *     *                                ADDRESSES: Comments may be                            SUPPLEMENTARY INFORMATION:
                                                  Dated: October 15, 2018.                              submitted by any of the following                     I. Background
                                                Bruce Summers,                                          methods:
                                                                                                                                                                 In October 2012, the Commission
                                                Administrator, Agricultural Marketing                   Electronic Comments                                   proposed amendments and new rules to:
                                                Service.
                                                                                                          • Use the Commission’s internet                     (1) Establish capital and margin
                                                [FR Doc. 2018–22758 Filed 10–18–18; 8:45 am]                                                                  requirements for SBSDs and MSBSPs
                                                                                                        comment form (http://www.sec.gov/
                                                BILLING CODE 3410–02–P
                                                                                                        rules/other.shtml); or                                that do not have a prudential regulator 1
                                                                                                          • Send an email to rule-comments@                   (‘‘nonbank SBSDs’’ and ‘‘nonbank
                                                                                                        sec.gov. Please include File No. S7–08–               MSBSPs’’, respectively); (2) establish
                                                SECURITIES AND EXCHANGE                                                                                       segregation requirements for SBSDs; (3)
                                                                                                        12 on the subject line.
                                                COMMISSION                                                                                                    establish notification requirements for
                                                                                                        Paper Comments                                        SBSDs and MSBSPs relating to
                                                17 CFR Part 240                                                                                               segregation; and (4) raise minimum net
                                                                                                           • Send paper comments to Secretary,
                                                [Release No. 34–84409; File No. S7–08–12]               Securities and Exchange Commission,                   capital requirements and establish
                                                                                                        100 F Street NE, Washington, DC                       liquidity requirements for ANC broker-
                                                RIN 3235–AL12                                                                                                 dealers.2 The Commission published the
                                                                                                        20549–1090.
                                                Capital, Margin, and Segregation                                                                              2012 Proposals largely pursuant to Title
                                                                                                        All submissions should refer to File                  VII of the Dodd-Frank Wall Street
                                                Requirements for Security-Based                         Number S7–08–12. This file number
                                                Swap Dealers and Major Security-                                                                              Reform and Consumer Protection Act
                                                                                                        should be included on the subject line                (‘‘Title VII of the Dodd-Frank Act’’). The
                                                Based Swap Participants and Capital                     if email is used. To help the
                                                Requirements for Broker-Dealers                                                                               Commission extended the comment
                                                                                                        Commission process and review your                    period once,3 and reopened it once.4
                                                AGENCY:  Securities and Exchange                        comments more efficiently, please use                 The Commission has received a number
                                                Commission.                                             only one method of submission. The                    of comment letters in response to the
                                                                                                        Commission will post all comments on                  2012 Proposals.5
                                                ACTION: Proposed rule; reopening of
                                                                                                        the Commission’s website (http://                        In addition, in May 2013, the
                                                comment period; request for additional
                                                                                                        www.sec.gov). Comments are also                       Commission proposed provisions to
                                                comment.
                                                                                                        available for website viewing and                     establish the cross-border treatment of
                                                SUMMARY:   The Securities and Exchange                  printing in the Commission’s Public                   security-based swap capital, margin,
                                                Commission (‘‘Commission’’) is                          Reference Room, 100 F Street NE,                      and segregation requirements.6 The
                                                reopening the comment period and                        Washington, DC 20549, on official
                                                requesting additional comment                           business days between the hours of                       1 The term ‘‘prudential regulator’’ is defined in

                                                (including potential modifications to                   10:00 a.m. and 3:00 p.m. All comments                 Section 1(a)(39) of the Commodity Exchange Act (7
                                                                                                        received will be posted without change.               U.S.C. 1(a)(39)) and that definition is incorporated
                                                proposed rule language) on the                                                                                by reference in Section 3(a)(74) of the Securities
                                                following: Proposed amendments and                      Persons submitting comments are                       Exchange Act of 1934 (‘‘Exchange Act’’ or ‘‘Act’’).
                                                new rules that would establish capital                  cautioned that we do not redact or edit               15 U.S.C. 78c(a)(74). Pursuant to the definition, the
                                                and margin requirements for security-                   personal identifying information from                 Board of Governors of the Federal Reserve System
                                                                                                        comment submissions. You should                       (‘‘FRB’’), the Office of the Comptroller of the
                                                based swap dealers (‘‘SBSDs’’) and                                                                            Currency (‘‘OCC’’), the Federal Deposit Insurance
                                                major security-based swap participants                  submit only information that you wish                 Corporation (‘‘FDIC’’), the Farm Credit
                                                (‘‘MSBSPs’’) that do not have a                         to make publicly available.                           Administration (‘‘FCA’’), or the Federal Housing
                                                prudential regulator, establish                            Studies, memoranda, or other                       Finance Agency (‘‘FHFA’’) (collectively, the
                                                                                                                                                              ‘‘prudential regulators’’) is the ‘‘prudential
                                                segregation requirements for SBSDs,                     substantive items may be added by the                 regulator’’ of an SBSD, MSBSP, swap participant, or
                                                establish notification requirements for                 Commission or staff to the comment file               major swap participant if the entity is directly
                                                SBSDs and MSBSPs relating to                            during this rulemaking. A notification of             supervised by that agency.
                                                segregation, and raise minimum net                      the inclusion in the comment file of any                 2 See Capital, Margin, and Segregation

                                                                                                        such materials will be made available                 Requirements for Security-Based Swap Dealers and
                                                capital requirements and establish                                                                            Major Security-Based Swap Participants and
                                                liquidity requirements for broker-                      on the Commission’s website. To ensure                Capital Requirements for Broker-Dealers, Exchange
                                                dealers permitted to use internal models                direct electronic receipt of such                     Act Release No. 68071 (Oct. 18, 2012), 77 FR 70214
                                                when computing net capital (‘‘ANC                       notifications, sign up through the ‘‘Stay             (Nov. 23, 2012) (‘‘2012 Proposals’’).
                                                                                                                                                                 3 See Capital, Margin, and Segregation
                                                broker-dealers’’). The Commission also                  Connected’’ option at www.sec.gov to
                                                                                                                                                              Requirements for Security-Based Swap Dealers and
                                                is reopening the comment period and                     receive notifications by email.                       Major Security-Based Swap Participants and
                                                requesting additional comment on                        FOR FURTHER INFORMATION CONTACT:                      Capital Requirements for Broker-Dealers, Exchange
                                                proposed amendments that would                          Michael A. Macchiaroli, Associate                     Act Release No. 68660 (Jan. 15. 2013), 78 FR 4365
                                                establish the cross-border treatment of                                                                       (Jan. 22, 2013).
                                                                                                        Director, at (202) 551–5525; Thomas K.                   4 See Reopening of Comment Periods for Certain
                                                security-based swap capital, margin,                    McGowan, Associate Director, at (202)                 Rulemaking Releases and Policy Statement
                                                and segregation requirements; and a                     551–5521; Randall W. Roy, Deputy                      Applicable to Security-Based Swaps Proposed
                                                proposed amendment that would                           Associate Director, at (202) 551–5522;                Pursuant to the Securities Exchange Act of 1934
amozie on DSK3GDR082PROD with PROPOSALS1




                                                establish an additional capital                                                                               and the Dodd-Frank Wall Street Reform and
                                                                                                        Sheila Dombal Swartz, Senior Special                  Consumer Protection Act, Exchange Act Release No.
                                                requirement for SBSDs that do not have                  Counsel, at (202) 551–5545; Timothy C.                69491 (May 1, 2013), 78 FR 30800 (May 23, 2013).
                                                a prudential regulator.                                 Fox, Branch Chief, at (202) 551–5687;                    5 The comment letters are available at http://

                                                DATES: The comment periods for                          Valentina Minak Deng, Special Counsel,                www.sec.gov/comments/s7-08-12/s70812.shtml.
                                                                                                                                                                 6 See Cross-Border Security-Based Swap
                                                portions of the proposed rules                          at (202) 551–5778; or Nina
                                                                                                                                                              Activities; Re-Proposal of Regulation SBSR and
                                                published Nov. 23, 2012 (77 FR 70213);                  Kostyukovsky, Attorney Advisor, at                    Certain Rules and Forms Relating to the
                                                May 23, 2013 (78 FR 30967); and May                     (202) 551–8833, Division of Trading and               Registration of Security-Based Swap Dealers and
                                                2, 2014 (79 FR 25193), are reopened.                    Markets, Securities and Exchange                                                                 Continued




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Document Created: 2018-10-19 01:26:11
Document Modified: 2018-10-19 01:26:11
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by November 19, 2018.
ContactAbigail Campos, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation83 FR 53003 
CFR Citation7 CFR 905
7 CFR 944
CFR AssociatedGrapefruit; Marketing Agreements; Oranges; Pummelos; Reporting and Recordkeeping Requirements; Tangelos; Tangerines; Avocados; Food Grades and Standards; Grapes; Imports; Kiwifruit; Limes and Olives

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