[Federal Register Volume 67, Number 164 (Friday, August 23, 2002)]
[Rules and Regulations]
[Pages 54567-54572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-21536]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Docket No. FV02-925-2 FIR]
Grapes Grown in a Designated Area of Southeastern California;
Revision to Container and Pack Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule which revised the container
and pack requirements currently prescribed under the California grape
marketing order (order). The order regulates the handling of grapes
grown in a designated area of Southeastern California and is
administered locally by the California Desert Grape Administrative
Committee (Committee). This rule continues in effect the addition of
four new containers (38L, 38M, CP, and CP1) to the list of containers
authorized for use by grape handlers regulated under the grape order.
This rule continues to allow reusable plastic containers (RPCs) in
shipping grapes, and continues in effect revisions to lot stamping
requirements for RPCs, revisions exempting master containers containing
individual consumer packages from the minimum net weight requirements
specified under the order, and revisions to marking and minimum net
weight requirements for clarity. This rule is expected to help handlers
compete more effectively in the marketplace, better meet the needs of
buyers, and to improve producer returns.
EFFECTIVE DATE: September 23, 2002.
FOR FURTHER INFORMATION CONTACT: Rose Aguayo, California Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 2202 Monterey Street, suite 102B,
Fresno, California 93721; telephone: (559) 487-5901, Fax: (559) 487-
5906; or George Kelhart, Technical Advisor, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue SW, STOP 0237, Washington, DC 20250-0237;
telephone: (202) 720-2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or e-mail: [email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 925 (7 CFR part 925), as amended, regulating the handling of grapes
grown in California, hereinafter referred to as the ``order.'' The
order is effective under the Agricultural Marketing Agreement Act of
1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the
``Act.''
USDA is issuing this rule in conformance with Executive Order
12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule will not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. 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.
This rule continues in effect language in Sec. 925.304 of the
order's rules and regulations which added four new containers (38L,
38M, CP, and CP1) to the list of containers authorized for use by grape
handlers regulated under the grape order, allowed RPCs in shipping
grapes, revised the lot stamping requirements for RPCs, and exempted
master containers containing individual consumer packages from the
minimum net weight requirements specified under the order. This rule is
expected to help handlers compete more effectively in the marketplace,
better meet the needs of buyers, and to improve producer returns. The
Committee unanimously recommended these changes at its February 12,
2002, meeting and clarified via a fax vote on February 21, 2002.
[[Page 54568]]
Addition of Four New Containers and Usage of RPCs
Section 925.52(a)(4) of the grape order provides authority to
regulate size, capacity, weight, dimensions, marking, materials, and
pack of containers, which may be used in the handling of grapes.
Prior to publication of the interim final rule (67 FR 20607, April
26, 2002), Sec. 925.304(b)(1) of the order's rules and regulations
outlined container and pack requirements for grapes and required such
grapes to be packed in containers which were new and clean and which
otherwise met the requirements of Secs. 1380.14, 1380.19(n), 1436.37,
and 1436.38 of Title 3: California Code of Regulations (CA Code of
Regulations).
Additionally, prior to publication of the above-mentioned interim
final rule, Secs. 925.304(b)(1)(i) through (b)(1)(iii) of the order's
rules and regulations authorized ten containers (28, 38J, 38K, 38Q,
38R, 38S, 38T, 38U, 38V, and a 5 kilo) for use by grape handlers, and
also authorized the Committee to approve other types of containers for
experimental or research purposes.
Section 925.304(f) states that certain container and pack
requirements cited in this regulation are specified in the Code of
Regulations and are incorporated by reference and that a notice of any
change in these materials will be published in the Federal Register.
Container requirements prescribed under the California grape order
were revised in January 1998 (63 FR 655, January 7, 1998). In March
1998, the 38L grape lug was added to the CA Code of Regulations, but
had not yet been added to the list of approved containers under the
Federal order. The 38L grape lug is defined as any container with an
inside depth of 7\5/8\ inches, an outside width of 13\11/16\ inches,
and an outside length of 16 inches.
Since that time, many retailers had asked handlers to pack grapes
in specific RPCs, corrugated lugs, and master containers that are not
authorized as containers under Sec. 925.304(b)(1)(i). There are several
manufacturers of these containers, and each manufacturer's container
dimensions vary slightly. During previous seasons, handlers applied for
and obtained Committee approval to use these containers on an
experimental basis.
Prior to February 2002, the Grape and Tree Fruit League (League)
petitioned the California Department of Food and Agriculture (CDFA) to
add the 38M grape lug to the list of standardized containers in the CA
Code of Regulations. Standard containers represent container types that
are recognized by the industry and adopted by the retail trade. The
CDFA expected the 38M grape lug to be standardized in the CA Code of
Regulations by May 2002. The 38M grape lug was standardized in the CA
Code of Regulations on May 29, 2002.
At its February 12, 2002, meeting, the Committee unanimously
recommended and USDA approved adding most of the containers previously
approved as experimental containers, including the 38M grape lug, to
the list of containers authorized under the order's rules and
regulations. In reviewing container dimensions, the Committee concluded
that the depth, width, and length dimensions for the 38L, 38M, CP, and
CP1 grape lugs encompass the dimensions for the containers previously
approved by the Committee for experimental purposes. Therefore, the
Committee unanimously recommended, through a fax vote on February 21,
2002, and USDA approved adding the following four containers to the
list of ten containers authorized in the order's rules and regulations
(67 FR 20607, April 26, 2002):
----------------------------------------------------------------------------------------------------------------
Container Depth inside Width outside Length outside
----------------------------------------------------------------------------------------------------------------
38L Grape Lug............... 7\5/8\.................... 13\11/16\................. 16
38M Grape Lug............... 4\1/4\-5\3/4\............. 15\3/8\-16................ 23\1/2\-24
CP Grape Lug................ 3\15/16\-4\3/4\........... 15\3/4\-15\9/16\.......... 23\1/2\-23\3/4\
CP1 Grape Lug............... 4\3/4\-5.................. 19\1/2\-20................ 23\3/4\-24
----------------------------------------------------------------------------------------------------------------
These containers may be constructed of several different materials
(e.g., plastic or fiberboard) but should conform to the range of
dimensions listed above.
These containers are an integral part of the marketing efforts used
by many handlers to meet market demands. Some of these containers are
RPCs. Retailers have requested that fruit be shipped in RPCs, as it can
be cooled quickly in these containers. This, in turn, helps ensure that
the grapes are fresh when they arrive at destination. The use of RPCs
may result in substantial savings to retailers for storage and disposal
as retailers return RPCs to a central area for cleaning and
redistribution. Cost savings may accrue to handlers, as well, since
they do not have to buy new containers for each shipment.
Prior to issuance of an interim final rule (67 FR 20607, April 26,
2002), Section 925.304(b)(1) of the rules and regulations required
grapes to be packed in new and clean containers. Containers, other than
RPCs, are intended to be used once and discarded. RPCs are typically
delivered to the retailer, emptied, and returned to the clearinghouse
for cleaning and redistribution. As RPCs are reusable, the Committee
recommended that the rules and regulations be revised to allow RPCs to
be reused, provided such containers are cleaned. Allowing RPCs to be
reused is expected to reduce the burden on handlers, as they will not
have to apply and obtain Committee approval annually to utilize them.
Adding these four containers to the order's rules and regulations
and allowing RPCs to be reused will enable handlers to meet their
customer requirements this season. This action will help the industry
in providing consumers with high quality grapes, promoting buyer
satisfaction, and improving producer returns. This action will not
impact the grape import requirements.
Lot Stamping Requirements
Section 925.55 of the order requires inspection and certification
of grapes, handled by handlers. Prior to publication of an interim
final rule (67 FR 20607, April 26, 2002), Sec. 925.304(b)(4) of the
grape order's rules and regulations required containers of grapes to be
plainly marked with the lot stamp number corresponding to the lot
inspection conducted by an authorized inspector, and specified that
such requirement shall not apply to containers in the center tier of a
3 box by 3 box pallet configuration.
During the 2001 season, the Committee approved the use of RPCs for
experimental purposes. RPCs are made of plastic and retailers send
these reusable containers to a central clearinghouse after use for
cleaning and sanitizing. Because RPCs are reusable, these plastic
containers do not support markings that are permanently affixed to the
container. All markings must be printed on cards which slip into tabs
on
[[Page 54569]]
the front or sides of the containers. The cards are easily inserted and
removed, and further contribute to the efficient use of the container.
Because of their unique portability, the industry and inspection
service are concerned that the cards on pallets of inspected containers
could easily be moved to pallets of uninspected containers.
The industry experimented last season with round adhesive labels on
RPCs. The lot stamp number was stamped on the round adhesive label and
the label was placed on the RPCs. However, it was difficult to remove
the adhesive label in the wash cycle. Additionally, handlers found that
workers needed to affix the adhesive label to the RPCs, and inspectors
needed to stamp the lot stamp number on the adhesive labels, outside of
cold storage facilities. During July 2001, temperatures in the
production area reached 100 to 118 degrees Fahrenheit. Committee
members estimated that for each hour that grapes were outside of cold
storage after harvest, a day's shelf life was lost. Handler members
calculated that affixing adhesive labels to RPCs cost the grape
industry approximately $0.10 per grape lug in materials and labor. The
inspection service and the Committee have presented their concerns to
the manufacturers of these types of grape lugs. One manufacturer has
indicated a willingness to address the problem by offering an area on
the principal display panel where the container markings will adhere to
the box. However, the manufacturer believes that this change may not be
feasible in the near future.
To address the additional time and cost of affixing adhesive labels
to containers, the Committee unanimously recommended and the USDA
approved the stamping of lot stamp numbers on two USDA-approved pallet
tags, with each pallet tag affixed to opposite sides of each pallet of
containers (67 FR 20607, April 26, 2002). The pallets will be wrapped
with clear plastic immediately after inspection, ensuring the tags
cannot be easily removed, although the tags remain visible beneath the
wrap. The Committee estimated that affixing lot stamp numbers to pallet
tags would reduce handler costs by $950,000, make handler operations
more efficient, and will provide consumers with high quality grapes.
Additionally, each lot will be traceable through the lot stamp, since
the lot stamp number on the pallet tag corresponds to the lot stamp
number annotated on the inspection certificate. This action will not
affect imports.
Minimum Net Weight Requirements
Section 925.52(a)(4) of the grape order provides authority to fix
the size, capacity, weight, dimensions, markings, materials, and pack
of the container, which may be used in the handling of grapes.
Section 925.304(b)(2) of the order's rules and regulations
specifies that the minimum net weight of grapes in any container,
except for containers containing grapes packed in sawdust, cork,
excelsior or similar packing material or packed in bags or wrapped in
plastic or paper, and experimental containers, shall be 20 pounds based
on the average net weight of grapes in a representative sample of
containers.
Prior to publication of an interim final rule (67 FR 20607, April
26, 2002), Sec. 925.340(b)(2) further specified that containers of
grapes packed in bags or wrapped in plastic or paper prior to being
placed in these containers shall meet a minimum net weight requirement
of 18 pounds.
Several years ago, the California Table Grape Commission
(Commission) funded a 3-year research project designed to determine if
current practices were getting the product to the retailer and
ultimately the consumer in the best possible condition. A study of
grape packaging was conducted by Dr. Harry Shorey of the University of
California at Davis and the University of California at Kearney
Agricultural Center at Parlier. The study concluded that the California
grape industry should modify container dimensions so that containers
will fit better on the standard 48 x 40-inch pallets, and that the
container minimum net weights should be reduced to 18 and 20 pounds.
Based on these conclusions, the Committee recommended and USDA approved
reducing the minimum net weight requirements in March 1996 to enhance
the deliverability of grapes (61 FR 11129, March 19, 1996).
Since that time, grape handlers have packed grapes in 18 and 20-
pound containers and marked such containers as 18 and 20 pounds. The
minimum net weight of grapes in 20-pound containers is based on the
average net weight of grapes in a representative sample of containers.
The minimum net weight of grapes in 18-pound containers also is based
on the average net weight of grapes in a representative sample of
containers. The language in Sec. 925.304(b)(2) was changed by an
interim final rule (67 FR 20607, April 26, 2002), to specifically
provide that containers containing grapes packed in bags or wrapped in
plastic or paper prior to being placed in these containers must meet a
minimum net weight requirement of 18 pounds based on an average net
weight of grapes in a representative sample of containers.
Approximately 95 percent of all grapes shipped during the 2001
season were shipped in 18-pound containers. Grapes normally lose
moisture during shipment. To address mislabeling concerns, it is common
practice in the industry to pack containers of grapes slightly over the
minimum net weight required to allow for shrink, and to mark these
containers as 18 or 20 pounds, respectively. Last season, some
containers were packed with slightly more than 21 pounds and marked as
21 pounds. Marking containers other than 18 or 20 pounds caused
confusion in the marketplace and impacted handler assessments and
statistical reporting. Thus, the Committee unanimously recommended at
its February 12, 2002, meeting, that containers packed with slightly
more than 18 or 20 pounds shall be marked as 18 and 20 pounds,
respectively. To address this issue, the text of the interim final rule
(67 FR 20607, April 26, 2002) provided that containers other than
master containers containing individual consumer packages are to be
marked with the minimum net weight of 18 or 20 pounds, as appropriate.
Recently, retailers have requested master containers containing
individual consumer packages that weigh a total of 24 pounds, 16
pounds, or 10 pounds. An individual consumer package is a package that
is customarily produced and distributed for sale to individuals for
their personal consumption.
The Committee discussed the best means of allowing handlers to meet
orders for master containers containing individual consumer packages
that had different minimum net weight requirements. The Committee
estimated that approximately 2 percent of the crop is shipped in master
containers containing individual consumer packages and unanimously
recommended and USDA approved revising Sec. 925.304(b)(2) to exempt
master containers containing individual consumer packages from the
minimum net weight requirements of 18 or 20 pounds (67 FR 20607, April
26, 2002). These changes will enable handlers to compete more
effectively in the marketplace and to better meet the needs of buyers.
These revisions do not impact the grape import regulation.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of
[[Page 54570]]
this action on small entities. Accordingly, AMS has prepared this final
regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 80 producers of grapes in the production
area and approximately 26 handlers subject to regulation under the
order. Small agricultural producers are defined by the Small Business
Administration (SBA) (13 CFR 121.201) as those having annual receipts
less than $750,000, and small agricultural service firms are defined as
those whose annual receipts are less than $5,000,000.
Last year, about 69 percent of the handlers could be considered
small businesses under SBA's definition and about 31 percent could be
considered large businesses. It is estimated that about 88 percent of
the producers have annual receipts of less than $750,000. Therefore,
the majority of handlers and producers of grapes may be classified as
small entities.
This rule continues in effect language in Sec. 925.304 of the
order's rules and regulations which added four new containers (38L,
38M, CP, and CP1) to the list of containers authorized for use by grape
handlers regulated under the grape order, which covers grapes grown in
a designated area of Southeastern California. This rule continues to
allow handlers to ship grapes in RPCs, continues in effect the revised
the lot stamping requirements for RPCs, and continues to exempt master
containers containing individual consumer packages from the minimum net
weight requirements specified under the order. Additionally, this rule
continues to clarify marking requirements for 18 and 20 pound
containers and continues in effect the removal of obsolete language in
Secs. 925.304(a) and 925.304(b)(iii) that was applicable to the period
June 1, 1998, through August 15, 1998.
The order regulates the handling of grapes grown in California and
is administered locally by the Committee. This rule is expected to help
handlers compete more effectively in the marketplace, better meet the
needs of buyers, and to improve producer returns. The Committee
unanimously recommended these changes. Authority for these actions is
provided in Secs. 925.52 and 925.55 of the order.
Addition of Four New Containers and Usage of RPCs
Prior to publication of an interim final rule (67 FR 20607, April
26, 2002), Sec. 925.304(b)(1) of the order's rules and regulations
outlined container and pack requirements for grapes and required grapes
be packed in containers which were new and clean and which otherwise
met the requirements of Secs. 1380.14, 1380.19(n), 1436.37, and 1436.38
of CA Code of Regulations.
Prior to publication of an interim final rule, (67 FR 20607, April
26, 2002) Secs. 925.304(b)(1)(i) through (b)(1)(iii) of the order's
rules and regulations authorized ten containers for use by grape
handlers, and also authorized the Committee to approve other types of
containers for experimental or research purposes.
Section 925.304(f) states that certain container and pack
requirements cited in this regulation are specified in the Code of
Regulations and are incorporated by reference and that a notice of any
change in these materials will be published in the Federal Register.
Container requirements prescribed under the California grape order
were revised in January 1998 (63 FR 655, January 7, 1998). In March
1998, the 38L grape lug was added to the CA Code of Regulations, but
had not yet been added to the list of approved containers under the
order. The 38L grape lug is defined as any container with an inside
depth of 7\5/8\ inches, an outside width of 13\11/16\ inches, and an
outside length of 16 inches.
Since that time, many retailers have asked handlers to pack grapes
in specific RPCs, corrugated lugs, and master containers that are not
authorized as containers under Sec. 925.304(b)(1)(i). There are several
manufacturers of these containers, and each manufacturer's container
dimensions vary slightly. During previous seasons, handlers applied for
and obtained Committee approval to use these containers on an
experimental basis.
Prior to the Committee's February 12, 2002, meeting, the League had
petitioned the CDFA to add the 38M grape lug to its list of
standardized containers in the CA Code of Regulations. Standard
containers represent container types that are recognized by the
industry and adopted by the retail trade.
The range of dimensions allowed for the 38M grape lug encompasses
the dimensions of many of the containers used experimentally during
previous seasons, including some RPCs. The CDFA expected to standardize
the 38M grape lug in the Code of Regulations by May 2002. The 38M grape
lug was standardized in the Code of Regulations effective May 29, 2002.
At its February 12, 2002, meeting, the Committee unanimously
recommended adding most of the containers previously approved as
experimental containers during the 2001 season, including the 38M grape
lug, to the list of containers authorized under the order's rules and
regulations. In reviewing container dimensions, the Committee concluded
that the 38L, 38M, CP, and CP1 grape lugs' depth, width, and length
dimensions will encompass the containers previously approved by the
Committee for experimental purposes. Therefore, the Committee
unanimously recommended, through a fax vote on February 21, 2002, and
USDA approved adding the following four containers to the list of ten
containers authorized in the order's rules and regulations (67 FR
20607, April 26, 2002):
----------------------------------------------------------------------------------------------------------------
Container Depth inside Width outside Length outside
----------------------------------------------------------------------------------------------------------------
38L Grape Lug............... 7\5/8\.................... 13\11/16\................. 16
38M Grape Lug............... 4\1/4\-5\3/4\............. 15\3/8\-16................ 23\1/2\-24
CP Grape Lug................ 3\15/16\-4\3/4\........... 15\3/4\-15\9/16\.......... 23\1/2\-23\3/4\
CP1 Grape Lug............... 4\3/4\-5.................. 19\1/2\-20................ 23\3/4\-24
----------------------------------------------------------------------------------------------------------------
These containers may be constructed of several different materials
(e.g., plastic or fiberboard) but should conform to the range of
dimensions listed above.
The Committee discussed alternatives to this change, including
making no changes to the list of containers authorized under the grape
order's rules and regulations. The Committee determined that the 38L,
38M, CP, and
[[Page 54571]]
CP1 grape lugs should be added to the rules and regulations as these
containers are an integral part of the marketing efforts used by many
handlers to meet market demands. Some of these containers are RPCs.
Retailers have requested that fruit be shipped in RPCs, as it can be
cooled quickly in them, helping to ensure freshness. The use of RPCs
may result in substantial savings to retailers for storage and disposal
as retailers return RPCs to a central area for cleaning and
redistribution. Cost savings may accrue to handlers, as well, since
they do not have to buy new containers for each shipment.
Prior to publication of an interim final rule (67 FR 20607, April
26, 2002), Section 925.304(b)(1) of the rules and regulations required
such grapes to be packed in new and clean containers. Containers, other
than RPCs, are intended to be used once and discarded. RPCs are
typically delivered to the retailer, emptied, and returned to the
clearinghouse for cleaning and redistribution. As RPCs are reusable,
the Committee recommended that the rules and regulations be revised to
allow RPCs to be reused, provided such containers are cleaned. Allowing
cleaned RPCs to be reused is expected to help handlers better meet
buyer needs.
Adding these four containers to the rules and regulations will
enable handlers to meet their customer requirements this season. This
action will continue to help the industry in providing consumers with
high quality grapes, promoting buyer satisfaction, and improving
producer returns. This action will not impact the grape import
requirements.
Lot Stamping Requirements
Prior to publication of an interim final rule (67 FR 20607, April
26, 2002), Section 925.304(b)(4) of the grape order's rules and
regulations required containers of grapes to be plainly marked with the
lot stamp number corresponding to the lot inspection conducted by an
authorized inspector, and specified that such requirement shall not
apply to containers in the center tier in a 3 box by 3 box pallet
configuration.
During the 2001 season, the Committee approved usage of RPCs for
experimental purposes. RPCs are made of plastic and retailers send
these reusable containers to a central clearinghouse after use for
cleaning and sanitizing. Because RPCs are reusable, these plastic
containers do not support markings that are permanently affixed to the
container. All markings must be printed on cards, which slip into tabs
on the front or sides of the containers. The cards are easily inserted
and removed, and further contribute to the efficient use of the
container. Because of their unique portability, the industry and
inspection service are concerned that the cards on pallets of inspected
containers could easily be moved to pallets of uninspected containers.
The industry experimented last season with round adhesive labels on
RPCs. The lot stamp number was stamped on the round adhesive label and
the label was placed on the RPCs. However, manufacturers found that it
was difficult to remove in the wash cycle. Additionally, handlers found
that workers need to affix the adhesive label to the RPCs, and
inspectors needed to stamp the lot stamp number on the adhesive labels,
outside of cold storage facilities. During July 2001, temperatures in
the production area reached 100 to 118 degrees Fahrenheit. Committee
members estimated that for each hour that grapes were outside of cold
storage after harvest, a day's shelf life was lost. Handler members
calculated that affixing adhesive labels to RPCs cost the grape
industry approximately $0.10 per grape lug in materials and labor. The
inspection service and the Committee have presented their concerns to
the manufacturers of these types of grape lugs. One manufacturer has
indicated a willingness to address the problem by offering an area on
the principle display panel where the container markings will adhere to
the box, which will meet the needs of the industries, the inspection
service, and the manufacturer. However, the manufacturer believes that
this change may not be feasible in the near future.
To address the additional time and cost of affixing adhesive labels
to containers, the Committee unanimously recommended the stamping of
lot stamp numbers be on two USDA-approved pallet tags, with each pallet
tag affixed to opposite sides of each pallet of containers. The pallets
will be wrapped with clear plastic immediately after inspection
ensuring the tags cannot be easily removed, although the tags remain
visible beneath the wrap. The Committee estimated that affixing lot
stamp numbers to pallet tags would reduce handler costs by $950,000,
make handler operations more efficient, and will provide consumers with
high quality grapes. Additionally, each lot will be traceable through
the lot stamp, since the lot stamp number on the pallet tag corresponds
to the lot stamp number annotated on the inspection certificate.
The Committee discussed alternatives to this change, including
making no changes to the lot stamp-numbering requirement. The Committee
believes that relaxing the lot stamp numbering requirement under the
rules and regulations will result in better quality grapes being
shipped to consumers, a reduction in handler costs, and improved
producer returns. Thus, the Committee recommended and USDA approved
revising Sec. 925.304(b)(4) to require the number be stamped on two
USDA-approved pallet tags for RPCs, and that the pallet tags be placed
on opposite sides of each pallet (67 FR 20607, April 26, 2002). This
action will not affect imports.
Minimum Net Weight Requirements
Section 925.304(b)(2) of the order's rules and regulations
specifies that the minimum net weight of grapes in any container,
except for containers containing grapes packed in sawdust, cork,
excelsior or similar packing material or packed in bags or wrapped in
plastic or paper. It specifies that approved experimental containers
shall be 20 pounds based on the average net weight of grapes in a
representative sample of containers.
Prior to publication of an interim final rule (67 FR 20607, April
26, 2002), Sec. 925.340(b)(2) further specified that containers of
grapes packed in bags or wrapped in plastic or paper prior to being
placed in these containers shall meet a minimum net weight requirement
of 18 pounds.
Several years ago, the Commission funded a 3-year research project
designed to determine if current practices were getting the product to
the retailer and ultimately the consumer in the best possible
condition. A study of grape packaging was conducted by Dr. Harry Shorey
of the University of California at Davis and the University of
California at Kearney Agricultural Center at Parlier. The study
concluded that the California grape industry should modify container
dimensions so that containers will fit better on the standard 48 x 40-
inch pallets, and that the container minimum net weights should be
reduced to 18 and 20 pounds. Based on these conclusions, the Committee
recommended and USDA approved reducing the minimum net weight
requirements in March 1996 to enhance the deliverability of grapes (61
FR 11129, March 19, 1996).
Since that time, grape handlers have packed grapes in 18 and 20-
pound containers and marked such containers as 18 and 20 pounds.
Approximately 95 percent of all grapes shipped during the 2001 season
were shipped in 18-pound containers. Grapes normally lose moisture
during shipment. To address
[[Page 54572]]
mislabeling concerns, it is common practice in the industry to pack
containers of grapes slightly over the minimum net weight required to
allow for shrink, and to mark these containers as 18 or 20 pounds,
respectively. Last season, some containers were packed with slightly
more than 21 pounds and marked as 21 pounds. Marking containers other
than 18 or 20 pounds caused confusion in the marketplace and impacted
handler assessments and statistical reporting. Thus, the Committee
unanimously recommended at its February 12, 2002, meeting, that
containers packed with slightly more than 18 or 20 pounds shall be
marked as 18 or 20 pounds, as appropriate. To address this issue,
Sec. 925.304(b)(2) was revised to provide that containers other than
master containers containing individual consumer packages to be marked
with the minimum net weight of 18 or 20 pounds, as appropriate (67 FR
20607, April 26, 2002).
The Committee discussed alternatives to this change. The Committee
believes that allowing markings other than 18 or 20-pound markings
could cause confusion in the marketplace and may not address the
mislabeling concerns as grapes lose moisture and shrink during
shipment. Thus, the Committee unanimously recommended at its February
12, 2002, meeting, that the container marking requirements in
Sec. 925.304(b)(2) be revised as provided in the interim final rule (67
FR 20607, April 26, 2002).
Recently, retailers have requested master containers containing
individual consumer packages that weigh a total of 24 pounds, 16
pounds, or 10 pounds. An individual consumer package is a package that
is customarily produced and distributed for sale to individuals for
their personal consumption.
The Committee discussed alternatives to this change, including
making no change to the minimum net weight requirement for master
containers containing individual consumer packages, but believes that
providing this exception for mater containers is in the best interest
of handlers. The Committee estimated that approximately 2 percent of
the crop is shipped in master containers containing individual consumer
packages. The 2002 crop was estimated to be 9.5 million lugs. Allowing
master containers containing individual consumer packages will enable
handlers to market an additional 190,000 lugs of grapes. Therefore, the
Committee unanimously recommended and USDA approved revising
Sec. 925.304(b)(2) to exempt master containers containing individual
consumer packages from the minimum net weight requirements of 18 or 20
pounds. (67 FR 20607, April 26, 2002).
Finally, the language in Sec. 925.304(b)(2) was changed for clarity
to specifically provide that containers containing grapes packed in
bags or wrapped in plastic or paper prior to being placed in these
containers must meet a minimum net weight requirement of 18 pounds
based on an average net weight of grapes in a representative sample of
containers.
These revisions will enable handlers to compete more effectively in
the marketplace and to better meet the needs of buyers. Imported grapes
will not be affected by this action.
Removal of Obsolete Language
This rule continues in effect the minor changes to remove obsolete
language in paragraphs (a) and (b)(iii) of Sec. 925.304. These
paragraphs included references to the period June 1, 1998, through
August 15, 1998, which marked the trial usage of the ``DGAC Consumer
No. 1 Institutional'' (DGAC) grade.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large grape 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.
In addition, as noted in the initial regulatory flexibility
analysis, USDA has not identified any relevant Federal rules that
duplicate, overlap or conflict with this rule.
Further, the Committee's meeting was widely publicized throughout
the grape industry and all interested persons were invited to attend
the meeting and participate in Committee deliberations. Like all
Committee meetings, the February 12, 2002, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue. A fax vote was conducted to clarify the
recommendation regarding the number and dimensions of containers to be
added to the list currently authorized under the grape order. All
handlers were provided information on the number and dimensions of
containers to be added to the order.
An interim final rule concerning this action was published in the
Federal Register on April 26, 2002. Copies of the rule were mailed by
the Committee's staff to all Committee members and grape handlers. In
addition, the rule was made available through the Internet by the
Office of the Federal Register and USDA. That rule provided for a 60-
day comment period which ended June 25, 2002. No comments were
received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html. Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
finalizing the interim final rule, without change, as published in the
Federal Register (67 FR 20607, April 26, 2002) will tend to effectuate
the declared policy of the Act.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements and orders, Reporting and
recordkeeping requirements.
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
Accordingly, the interim final rule amending 7 CFR part 925 which
was published at 67 FR 20607 on April 26, 2002, is adopted as a final
rule without change.
Dated: August 19, 2002.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 02-21536 Filed 8-22-02; 8:45 am]
BILLING CODE 3410-02-P