Unknown. Interim final rule with request for comments
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--- schema: federal-register doc_type: fedreg source_file: FR-2002-08-22.xml --- 67 163 Thursday, August 22, 2002 Contents Agricultural Agricultural Marketing Service RULES Kiwifruit grown in— California, 54327-54333 02-21364 Agriculture Agriculture Department See Agricultural Marketing Service See Food Safety and Inspection Service See Forest Service NOTICES Agency information collection activities: Submission for OMB review; comment request, 54401-54404 02-21375 Alcohol Alcohol, Tobacco and Firearms Bureau PROPOSED RULES Alcoholic beverages:
Malt beverages; labeling and advertising, 54388-54389 02-21455 Antitrust Antitrust Division NOTICES Competitive impact statements and proposed consent judgments: Manitowoc Co., Inc., et al., 54469-54479 02-21350 National Association of Police Equipment Distributors, Inc., 54463-54469 02-21351 Arts Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Centers Centers for Disease Control and Prevention NOTICES Agency information collection activities:
Proposed collection; comment request, 54427-54428 02-21354 Centers Centers for Medicare & Medicaid Services RULES Medicaid: Managed care Correction, 54532 C2-14747 PROPOSED RULES Medicare: National and local coverage determinations; review, 54533-54563 02-21530 NOTICES Privacy Act: Systems of records, 54428-54436 02-21374 Children Children and Families Administration NOTICES Organization, functions, and authority delegations: Deputy Assistant Secretary Office, 54436-54440 02-21465 Coast Guard Coast Guard RULES Regattas and marine parades:
Escape from Fort Delaware-One Mile Swim, 54340-54341 02-21468 Sunset Lake Hydrofest, 54343-54345 02-21469 Trump Marina Offshore Grand Prix, 54341-54343 02-21470 Commerce Commerce Department See International Trade Administration See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration Comptroller Comptroller of the Currency NOTICES Agency information collection activities: Proposed collection; comment request, 54528-54529 02-21424 Employment Employment and Training Administration NOTICES Agency information collection activities:
Proposed collection; comment request; correction, 54482 02-21405 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Grants and cooperative agreements; availability, etc.: High Temperature Superconductivity Program; university research, 54410 02-21418 EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States: California, 54349-54351 02-21435 Pesticides; tolerances in food, animal feeds, and raw agricultural commodities:
Iprovalicarb, 54351-54359 02-21293 Solid wastes: Hazardous waste; identification and listing-- Exclusions [ **Editorial Note:** This document, published at 67 FR 54124 in the **Federal Register** of Wednesday, August 21, 2002, was incorrectly identified in that issue's table of contents.] PROPOSED RULES Air pollutants, hazardous; national emission standards: Chlorine and hydrochloric acid emissions from chlorine production, 54399-54400 02-21437 Mercury emissions from mercury cell chlor-alkali plants, 54400 02-21438 Air quality implementation plans; approval and promulgation; various States:
California, 54399 02-21436 NOTICES Agency information collection activities: Proposed collection; comment request, 54416-54418 02-21444 Reporting and recordkeeping requirements, 54418-54419 02-21442 Confidential business information and data transfer, 54419-54420 02-21440 Meetings: Scientific Counselors Board Executive Committee, 54420 02-21441 Pesticide programs: Organophospates; risk assessments; availabilty, etc.— Organophosphate, 54420-54421 02-21568 Reports and guidance documents; availability, etc.:
Existing small municipal waste combustion units; emission guidelines; reconsideration petitions denied, 54421-54422 02-21443 Executive Executive Office of the President See Presidential Documents FAA Federal Aviation Administration RULES Airworthiness directives: Boeing, 54333-54336 02-20269 Bombardier, 54336-54338 02-20931 Turbomeca S.A., 54338-54339 02-21355 PROPOSED RULES Airworthiness directives: Bell, 54381-54384 02-21357 Pilatus Britten-Norman Ltd., 54384-54387 02-21356 Airworthiness standards:
Transport category airplanes— Airplane engine cowling retention; withdrawn, 54379-54380 02-21472 Low fuel quantity alerting system; withdrawn, 54380-54381 02-21471 FDIC Federal Deposit Insurance Corporation NOTICES Agency information collection activities: Submission for OMB review; comment request, 54422 02-21451 Federal Election Federal Election Commission PROPOSED RULES Contribution and expenditure limitations and prohibitions: Contribution limits increase, prohibition on contributions and donations by minors, and expenditures by foreign nationals, 54366-54379 02-21277 NOTICES Meetings;
Sunshine Act, 54422 02-21597 Federal Emergency Federal Emergency Management Agency NOTICES Agency information collection activities: Submission for OMB review; comment request, 54422-54423 02-20961 Federal Energy Federal Energy Regulatory Commission PROPOSED RULES Natural Gas Policy Act: Natural gas pipeline negotiated rate policies and practices, 54387 02-21272 NOTICES Agency information collection activities: Proposed collection; comment request, 54410-54412 02-21385 02-21386 Electric rate and corporate regulation filings:
Mirant Neenah, LLC, et al., 54413-54414 02-21383 PJM Interconnection, L.L.C., et al., 54414-54416 02-21382 Practice and procedure: Off-the-record communications, 54416 02-21387 *Applications, hearings, determinations, etc.:* Columbia Gas Transmission Corp., 54413 02-21384 Federal Motor Federal Motor Carrier Safety Administration NOTICES Motor carrier safety standards: Driver qualifications— Parker, Jerry; vision and physical exemptions application, 54525-54527 02-21476 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies:
Formations, acquisitions, and mergers, 54423-54424 02-21349 Reports and guidance documents; availability, etc.: Payments system risk potential longer-term policy direction; policy statement, 54424-54427 02-21454 Food Food Safety and Inspection Service NOTICES Reports and guidance documents; availability, etc.: Food Processors; Security Guidelines, 54404-54405 02-21376 Forest Forest Service NOTICES Environmental statements; notice of intent: Medicine Bow-Routt National Forests et al., WY, 54405-54406 02-21452 Sawtooth National Forest, ID, 54406-54407 02-21402 Meetings:
Resource Advisory Committees— Central Idaho, 54408 02-21403 Fresno County, 54407-54408 02-21353 GSA General Services Administration NOTICES Acquisition regulations: Medical Examination of Applicants for United States Visas (OF 157); form cancellation, 54427 02-21399 Geological Geological Survey NOTICES Primary series quadrangles; price increase, 54448-54449 02-21404 Health Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Children and Families Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration NOTICES Agency information collection activities:
Proposed collection; comment request, 54427 02-21426 Housing Housing and Urban Development Department NOTICES Agency information collection activities: Submission for OMB review; comment request, 54448 02-21398 Immigration Immigration and Naturalization Service PROPOSED RULES Executive Office for Immigration Review: Aliens with criminal convictions before April 1, 1997; relief from deportation or removal Correction, 54360 02-21035 Interior Interior Department See Geological Survey See Land Management Bureau IRS Internal Revenue Service PROPOSED RULES Income taxes:
Cost recovery (deductions) under income forecast method of depreciation; guidance Hearing cancellation, 54388 02-21464 International International Trade Administration NOTICES Antidumping: Potassium permanganate from— China, 54408 02-21460 Justice Justice Department See Antitrust Division See Immigration and Naturalization Service See Justice Programs Office NOTICES Agency information collection activities: Proposed collection; comment request, 54462-54463 02-21450 Pollution control; consent judgments:
Occidental Chemical Corp., 54463 02-21369 Justice Justice Programs Office NOTICES Agency information collection activities: Proposed collection; comment request, 54479 02-21380 Submission for OMB review; comment request, 54479-54480 02-21381 Labor Labor Department See Employment and Training Administration See Occupational Safety and Health Administration See Pension and Welfare Benefits Administration NOTICES Agency information collection activities: Submission for OMB review; comment request, 54480-54482 02-21406 02-21407 02-21408 Land Land Management Bureau NOTICES Classification of public lands:
Idaho, 54449 02-21390 Closure of public lands: Alaska, 54449-54450 02-21401 Meetings: Resource Advisory Councils— Central Montana, 54450 02-21219 Realty actions; sales, leases, etc.: Arizona, 54450-54451 02-21394 Michigan, 54451-54453 02-21391 02-21392 Nevada, 54453-54456 02-21389 02-21396 02-21397 Recreation management restrictions, etc.: Little Sahara Special Recreation Management Area, UT; supplementary rules, 54456-54459 02-21388 Sand Mountain and Walker Lake Recreation Areas, NV; user fee collection and supplementary rules of conduct, 54459-54462 02-21395 Withdrawal and reservation of lands:
Montana, 54462 02-21393 Legal Legal Services Corporation NOTICES Grants and cooperative agreements; availability, etc.: Civil legal services to poor— Michigan, 54495 02-21379 Maritime Maritime Administration NOTICES Coastwise trade laws; administrative waivers: SPIRIT, 54527-54528 02-21445 National Foundation National Foundation on the Arts and the Humanities NOTICES Agency information collection activities: Proposed collection; comment request, 54495-54496 02-21475 National Institute National Institute of Standards and Technology NOTICES Meetings:
Malcolm Baldrige National Quality Award— Panel of Judges, 54408-54409 02-21462 NIH National Institutes of Health NOTICES Meetings: National Center for Research Resources, 54440 02-21343 National Institute of Allergy and Infectious Diseases, 54440 02-21345 National Library of Medicine, 54440-54441 02-21344 02-21346 Organization, functions, and authority delegations: National Institute of Allergy and Infectious Diseases, 54441 02-21347 Privacy Act: Systems of records, 54441-54444 02-21348 NOAA National Oceanic and Atmospheric Administration NOTICES Agency information collection activities:
Proposed collection; comment request, 54409 02-21458 Coastal zone management programs and estuarine sanctuaries: Consistency appeals— Fenner, Peter, et al., 54410 02-21453 Nuclear Nuclear Regulatory Commission PROPOSED RULES Spent nuclear fuel and high-level radioactive waste; independent storage; licensing requirements, etc.: Event notification requirements, 54360-54366 02-21414 NOTICES Environmental statements; notice of intent: Carolina Power & Light Co., 54499-54501 02-21413 Savannah River Site, SC; mixed oxide fuel fabrication facility, 54501-54502 02-21416 Meetings:
Nuclear Waste Advisory Committee, 54502 02-21419 Reactor Safeguards Advisory Committee, 02-21420 54502-54504 02-21421 02-21422 02-21423 *Applications, hearings, determinations, etc.:* Dominion Nuclear Connecticut, Inc., 54497-54499 02-21417 PSEG Nuclear LLC, 54499 02-21412 Veterans Affairs Department, Nebraska-Western Iowa Health Care System, 54496-54497 02-21415 Occupational Occupational Safety and Health Administration PROPOSED RULES Safety and health standards: Hexavalent chromium; occupational exposure, 54389-54394 02-21449 Overseas Overseas Private Investment Corporation NOTICES Meetings;
Sunshine Act, 54504 02-21542 Pension Pension and Welfare Benefits Administration NOTICES Employee benefit plans; prohibited transaction exemptions: Adams Wood Products, Inc., et al., 54482-54484 02-21431 Watkins Master Trust, 54484-54487 02-21432 02-21433 Employee benefit plans; prohibitied transaction exemptions: Bear, Stearns & Co. Inc. et al, 54487-54495 02-21434 Postal Postal Service PROPOSED RULES Domestic Mail Manual: Standard mail and periodicals letter-size and flat-size mail; simplified address format, 54397-54399 02-21461 Presidential Presidential Documents ADMINISTRATIVE ORDERS Tunisia; military drawdown (Presidential Determination No. 2002-28 of August 14, 2002), 54325 02-21554 Public Public Health Service See Centers for Disease Control and Prevention See National Institutes of Health See Substance Abuse and Mental Health Services Administration Railroad Railroad Retirement Board NOTICES Agency information collection activities:
Submission for OMB review; comment request, 54504 02-21352 Saint Lawrence Saint Lawrence Seaway Development Corporation NOTICES Meetings: Advisory Board, 54528 02-21474 SEC Securities and Exchange Commission NOTICES Meetings; Sunshine Act, 54506-54507 02-21598 Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC, 54507-54508 02-21429 Chicago Board Options Exchange, Inc., 54509-54515 02-21377 National Association of Securities Dealers, Inc., 54515-54521 02-21378 02-21428 New York Stock Exchange, Inc., 54521-54523 02-21430 *Applications, hearings, determinations, etc.:* Public utility holding company filings, 54504-54506 02-21427 SBA Small Business Administration NOTICES Disaster loan areas:
Alaska, 54523 02-21448 Arizona, 54523 02-21447 Iowa, 54523-54524 02-21446 State State Department NOTICES Meetings: Public Diplomacy, U.S. Advisory Commission, 54524 02-21459 Substance Substance Abuse and Mental Health Services Administration NOTICES Grants and cooperative agreements; availability, etc.: Prevention/Early Intervention Services, 54445-54446 02-21342 State Emergency Response Capacity, 54446-54448 02-21358 Transportation Transportation Department See Coast Guard See Federal Aviation Administration See Federal Motor Carrier Safety Administration See Maritime Administration See Saint Lawrence Seaway Development Corporation NOTICES Agency information collection activities:
Proposed collection; comment request, 02-21466 54524-54525 02-21467 Air carriers: U.S. passenger airlines agreements— United Air Lines and US Airways; waiting period extended, 54525 02-21555 Treasury Treasury Department See Alcohol, Tobacco and Firearms Bureau See Comptroller of the Currency See Internal Revenue Service Veterans Veterans Affairs Department RULES Disabilities rating schedule: Intervertebral disc syndrome, 54345-54349 02-21365 PROPOSED RULES Disabilities rating schedule:
Respirator and cardiovascular conditions; evaluation of hypertension with heart disease, 54394-54397 02-21366 NOTICES Patent licenses; non-exclusive, exclusive, or partially exclusive: 21st Century Medicine, Inc., 54529 02-21367 Privacy Act: Systems of records, 54529-54531 02-21368 Separate Parts In This Issue Part II Health and Human Services Department, Centers for Medicare & Medicaid Services, 54533-54563 02-21530 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.
To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 67 163 Thursday, August 22, 2002 Rules and Regulations DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 920 [Docket No. FV02-920-3 IFR] Kiwifruit Grown in California; Relaxation of Pack and Container Requirements AGENCY:
Agricultural Marketing Service, USDA. ACTION: Interim final rule with request for comments. SUMMARY: This rule revises pack and container requirements currently prescribed for California kiwifruit under the California kiwifruit marketing order (order). The order regulates the handling of kiwifruit grown in California and is administered locally by the Kiwifruit Administrative Committee (Committee). This rule increases the number of pieces of fruit per 8-pound sample for three size designations and decreases the number of individual pieces of fruit per 8-pound sample for one size designation, revises lot stamping requirements for plastic containers, suspends the standard packaging requirement for volume filled containers of kiwifruit designated by weight for the 2002-03 season, and removes obsolete language from the text of the regulation.
These changes were unanimously recommended by the Committee and are expected to help handlers compete more effectively in the marketplace, better meet the needs of buyers, and to improve grower returns. DATES: Effective August 23, 2002. Comments received by October 21, 2002 will be considered prior to issuance of a final rule. ADDRESSES: Interested persons are invited to submit written comments concerning this rule. Comments must be sent to the Docket Clerk, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237;
Fax:
(202)720-8938, or e-mail: *moab.docketclerk@usda.gov.* All comments should reference the docket 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.ams.usda.gov/fv/moab.html.* 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: *Jay.Guerber@usda.gov.* SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order No. 920 as amended (7 CFR part 920), regulating the handling of kiwifruit 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.” The Department of Agriculture
(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 revises container and pack requirements currently prescribed for California kiwifruit under the order. This rule increases the number of pieces of fruit per 8-pound sample for three size designations and decreases the number of individual pieces of fruit per 8-pound sample that handlers can pack for one size designation, revises lot stamping requirements for plastic containers, suspends the standard packaging requirement for volume filled containers of kiwifruit designated by weight for the 2002-03 season, and removes obsolete language from the text of the regulation. These changes were unanimously recommended by the Committee and are expected to help handlers compete more effectively in the marketplace, better meet the needs of buyers, and to improve grower returns. The Committee unanimously recommended these changes at its April 9, 2002, meeting. Numerical Count Size Designations Under the terms of the order, fresh market shipments of kiwifruit grown in California are required to be inspected and meet grade, size, maturity, pack, and container requirements. Section 920.52 authorizes the establishment of pack requirements. Section 920.302(a)(4) of the order's administrative rules and regulations outlines pack requirements for fresh shipments of California kiwifruit. Section 920.302(a)(4)(iii) establishes a maximum number of fruit per 8-pound sample for each numerical count size designation for fruit packed in bags, volume filled, or bulk containers. The amount of kiwifruit supplied to the domestic market by California handlers has declined 40 percent since the 1992-93 season, while imports from Europe have increased 1,409 percent. During the 2000-01 season approximately 3.2 million tray equivalents were imported from Europe. Imports from Europe are in direct competition with California kiwifruit. Additionally, grower prices have steadily declined in spite of a continuous increase in the U.S. per capita consumption of kiwifruit. When the order was implemented in 1984, the average Free-on-Board
(FOB)value was $1.14 per pound. A recent review of FOB values showed that the average FOB value for the 1992-93 season through the 1999-2000 season was $0.56 per pound, a decline of $0.58 per pound. As previously mentioned, the rules and regulations specify a maximum number of fruit per 8-pound sample for each numerical count size designation for kiwifruit packed in bags, volume filled, or bulk containers. California and imported fruit size designations by weight have differed since the implementation of the order. In 1998, the Committee addressed these differences by revising the numerical count per size designation specified in § 920.302(a)(iv) of the order's administrative rules and regulations. An interim final rule published in the **Federal Register** on September 3, 1998 (63 FR 46861), increased the number of fruit that could be packed per 8-pound samples of size designations 30 through 42. A final rule concerning this matter was published in the **Federal Register** on July 29, 1999 (64 FR 41010). Buyers generally prefer to purchase containers with a greater number of pieces of fruit in the box. Therefore, at its September 19, 2001, meeting, the Committee again addressed the differences in size designations between California kiwifruit and imported kiwifruit and unanimously recommended relaxing pack requirements under § 920.302(a)(iii) to permit handlers to pack more individual pieces of fruit in an 8-pound sample for various sizes. The Committee unanimously recommended increasing the maximum number of fruit per 8-pound sample for sizes 42 through 25, eliminating size 21, and adding new sizes 20 and 23. These changes as shown in the following chart were implemented through an interim final rule (66 FR 1413, October 29, 2001) and a final rule (67 FR 11396, March 14, 2002). Changes are in bold. Size designation Maximum number of fruit per 8-pound sample 20 27 23 29 25 32 27/28 35 30 38 33 43 36 45 39 49 42 54 45 55 This chart is commonly referred to as the “Size Designation Chart” in the industry. Increasing the maximum number of fruit per 8-pound sample allowed some smaller-sized fruit to be packed into a larger-size category. This change allowed one more piece of fruit to be packed per 8-pound sample in sizes 42 and 39, three more pieces of fruit to be packed in size 36, seven more pieces of fruit to be packed in size 33, and five more pieces of fruit to be packed in sizes 27/28 and 25. Increasing the maximum number of fruit permitted per 8-pound samples during the 2001-02 season enabled handlers to better meet the needs of buyers, because kiwifruit sells by the piece, and buyers desire as much fruit in each container as the container can comfortably hold. The changes to the size designation chart have helped reduce the sizing differences between California and imported kiwifruit during the 2001-02 season and allowed more fruit to be sold; however, handlers found that adjustments are still needed in some of the size designations to bring them closer to imported fruit size designations and to allow more accurate sorting into the size categories with handler sizing equipment. Sizing equipment had difficulty during the 2001-02 season distinguishing between sizes. Therefore, at its April 9, 2002, meeting, the Committee unanimously recommended increasing the maximum number of fruit per 8-pound sample for sizes 23, 30, and 36, and reducing the maximum number of fruit per 8-pound sample for size 42. The maximum number of fruit allowed in size 23 will be increased from 29 pieces of fruit per 8-pound sample to 30 pieces; in size 30, 39 pieces of fruit will be allowed instead of 38 pieces; in size 36, 46 pieces of fruit will be allowed instead of 45; and in size 42, the number of fruit allowed will be decreased from 54 pieces of fruit per 8-pound sample to 53 pieces. These recommended changes are shown in the following chart. Recommended changes are shown in bold. Size designation Maximum number of fruit per 8-pound sample 20 27 23 29 30 25 32 27/28 35 30 38 39 33 43 36 45 46 39 49 42 54 53 45 55 The Committee believes that increasing the number of fruit permitted per 8-pound samples of sizes 23, 30, and 36, and decreasing the number of fruit per 8-pound sample for size 42 will result in more clearly defined size categories, and allow sizing equipment to more uniformly separate fruit of different sizes. Additionally, these adjustments will make the four size designations more similar to those for imported fruit. This action will not affect import requirements. Lot Stamping Requirements Section 920.52 of the order authorizes the establishment of container requirements. Section 920.55 of the order requires inspection and certification of kiwifruit, handled by handlers. Section 920.303(d) requires all exposed or outside containers of kiwifruit, but not less than 75 percent of the total containers on a pallet be plainly marked with the lot stamp number corresponding to the lot inspection conducted by an authorized inspector. It further requires that individual consumer packages of kiwifruit placed directly on a pallet have all outside or exposed packages on a pallet plainly marked with the lot stamp number corresponding to the lot inspection conducted by an authorized inspector or have one inspection label placed on each side of the pallet. However, kiwifruit packed into individual consumer packages within a master container that are being directly loaded into a vehicle for export shipment under the supervision of the Federal or Federal-State Inspection Service (inspection service) are exempted from the lot stamp number requirement. The lot stamp number is used by the inspection service to identify and locate the corresponding inspector's working papers or notes. Working papers are the documents each inspector completes while performing an inspection on a lot of kiwifruit. During the 2001 season, the kiwifruit industry began using plastic containers of various dimensions that can hold either bulk or tray packed kiwifruit. Some of these containers are reusable. Kiwifruit packed in reusable plastic containers
(RPCs)is typically delivered to the retailer, where the containers are emptied and returned to the clearinghouse for cleaning and redistribution. As RPCs 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 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, enabling a handler to avoid inspection on a lot or lots of kiwifruit. The industry experimented last season with round adhesive labels on RPCs. The lot stamp number was stamped on the round adhesive label and placed on the RPCs; however, manufacturers found that it was difficult to remove the adhesive label in the wash cycle. Additionally, handlers found that increased labor was needed to affix the adhesive labels and lot stamp number to the plastic containers. Handler members calculated that affixing adhesive labels to RPCs and one-way plastic containers cost the kiwifruit industry approximately $0.10 per container in materials and labor. The inspection service and the Committee have presented their concerns to the manufacturers of these types of containers. 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 plastic container. 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 that handlers be allowed to use any method of positive lot identification
(PLI)in accordance with Federal or Federal-State Inspection Service (inspection service) procedures. The Committee estimated that allowing handlers to use any method of PLI acceptable to inspection service will reduce handler costs by $8,700, and will make handler operations more efficient. This action will not affect import requirements. Standard Packaging for Volume Filled Containers Designated by Weight Section 920.52 authorizes the establishment of pack requirements. Paragraphs
(1)and
(3)of § 920.52 specify that the USDA may fix the weight of containers used in the handling of kiwifruit. Section 920.302(a)(4) of the order's administrative rules and regulations outlines pack requirements for fresh shipments of California kiwifruit. Section 920.302(a)(4)(v) requires that all volume filled containers of kiwifruit designated by weight shall hold 22-pounds (10-kilograms) net weight of kiwifruit unless such containers hold less than 10-pounds or more than 35-pounds net weight of kiwifruit. In a volume filled container, fairly uniform size kiwifruit are loosely packed without cell compartments, cardboard fillers or molded trays. Handlers may ship volume filled containers marked by either the appropriate count or net weight of kiwifruit. Handler shipments are based upon the preference of the receiver. In 1994, the Committee unanimously recommended and USDA established standard packaging for certain volume filled containers designated by weight. At that time 52 percent of the total crop was packed into volume filled containers. The percentage of the total crop packed into volume filled containers increased to 85 percent during the 2001-02 season. In 2001-02, imports from the Northern hemisphere (Greece, Italy, and France) totaled approximately 17 percent of the U.S. market share. The majority of imported kiwifruit was shipped in 19.8-pound (9-kilogram) volume filled containers, whereas the order limits California handlers to 22-pound (10-kilogram) net weight volume filled containers. Retailers do not differentiate between an imported 19.8-pound (9-kilogram) and a 22-pound (10-kilogram) net weight volume filled container from California. Because buyers pay the same price for each container, the affect is not favorable for California handlers. Section 920.302(a)(4)(v) requires handlers to utilize a standard packaging of 22-pounds (10-kilograms) net weight for volume filled containers that are over 10-pounds or less than 35-pounds net weight of kiwifruit. This restriction limits California kiwifruit handlers in meeting buyer's demands for other types of packaging. Therefore, at its April 9, 2002, meeting, the Committee unanimously recommended suspending the standardized packaging requirement of 22-pounds (10-kilograms) net weight for volume filled containers for the 2002-03 season. The Committee expects that this suspension will enable California handlers to meet packaging demands of the retailer for volume filled containers, make California kiwifruit more competitive by allowing handlers to match other packaging styles, and reduce handlers' packaging costs. This change will not affect the import regulation. Removal of Obsolete Language Paragraphs
(a)and
(b)of § 920.60 authorize reporting requirements for kiwifruit handlers under the marketing order. Section 920.160 requires each handler who ships kiwifruit to file a report of shipment and inventory data to the Committee no later than the fifth day of the month following such shipment. Handlers who ship less than 10,000 trays or the equivalent thereof, per fiscal year, and who have qualified with the Committee are only required to furnish such report of shipment and inventory data twice each year. Paragraphs (a)(1) through (a)(6) of § 920.160 specify the types of information to be provided on the shipment report. Paragraph (a)(4) requires handlers to report inventory at the end of the reporting period by container; paragraph (a)(5) requires handlers to report the amount of kiwifruit lost in repack; and paragraph (a)(6) requires handlers to report the amount of fruit set aside for processing. The Committee has not been collecting this information from handlers since the early 1990's. Therefore, the Committee unanimously recommended removing these obsolete reporting requirements from § 920.160 of the order's rules and regulations at the April 9, 2002, meeting. Initial Regulatory Flexibility Analysis Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA), the Agricultural Marketing Service
(AMS)has considered the economic impact of this action on small entities. Accordingly, AMS has prepared this initial 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 52 handlers of California kiwifruit subject to regulation under the marketing order and approximately 326 growers in the production area. Small agricultural service firms are defined as those whose annual receipts are less than $5,000,000, and small agricultural growers are defined by the Small Business Administration (13 CFR 121.201) as those whose annual receipts are less than $750,000. None of the 52 handlers subject to regulation have annual kiwifruit sales of at least $5,000,000. Two of the 326 growers subject to regulation have annual sales of at least $750,000. Therefore, a majority of the kiwifruit handlers and growers may be classified as small entities. This rule invites comments on revisions to container and pack requirements prescribed under the California kiwifruit order. This rule increases the number of pieces of fruit per 8-pound sample for three size designations and decreases the number of pieces of fruit per 8-pound sample for one size designation, revises lot stamping requirements for plastic containers, suspends the standard packaging requirement for volume filled containers of kiwifruit designated by weight for the 2002-03 season, and removes obsolete language contained in paragraphs (a)(4), (a)(5), and (a)(6) of § 920.160 that has not been applicable for several years. The Committee unanimously recommended these changes at its April 9, 2002, meeting. This rule is expected to help handlers compete more effectively in the marketplace, better meet the needs of buyers, and to improve grower returns. Authority for these actions is provided in §§ 920.52, 920.55, and 920.60 of the order. Numerical Count Size Designations Under the terms of the order, fresh market shipments of kiwifruit grown in California are required to be inspected and meet grade, size, maturity, pack, and container requirements. Section 920.302(a)(4) of the order's administrative rules and regulations outlines pack requirements for fresh shipments of California kiwifruit. Section 920.302(a)(4)(iii) establishes a maximum number of fruit per 8-pound sample for each numerical count size designation for fruit packed in bags, volume filled, or bulk containers. The amount of kiwifruit supplied to the domestic market by California handlers has declined 40 percent since the 1992-93 season, while imports from Europe have increased 1,409 percent. During the 2000-01 season approximately 3.2 million tray equivalents were imported from Europe. Imports from Europe are in direct competition with California kiwifruit. Additionally, grower prices have steadily declined in spite of a continuous increase in the U.S. per capita consumption of kiwifruit. When the order was implemented in 1984, the average Free-on-Board
(FOB)value was $1.14 per pound. A recent review of FOB values showed that the average FOB value for the 1992-93 season through the 1999-2000 season was $0.56 per pound, a decline of $0.58 per pound. As previously mentioned, the rules and regulations specify a maximum number of fruit per 8-pound sample for each numerical count size designation for kiwifruit packed in bags, volume filled, or bulk containers. California and imported fruit size designations by weight have differed since the implementation of the order. In 1998 the Committee addressed these differences by revising the numerical count per size designation specified in § 920.302(a)(iv) of the order's administrative rules and regulations. An interim final rule published in the **Federal Register** on September 3, 1998 (63 FR 46861), increased the number of fruit that could be packed per 8-pound samples of size designations 30 through 42. A final rule concerning this matter was published in the **Federal Register** on July 29, 1999 (64 FR 41010). Buyers generally prefer to purchase containers with a greater number of pieces of fruit in the box. Therefore, at its September 19, 2001, meeting, the Committee again addressed the differences in size designations between California kiwifruit and imported kiwifruit and unanimously recommended relaxing pack requirements under § 920.302(a)(iii) to permit handlers to pack more individual pieces of fruit in an 8-pound sample for various size designations, and, thus, better meet buyer preferences. The Committee unanimously recommended increasing the maximum number of fruit per 8-pound sample for sizes 42 through 25, eliminating size 21, and adding new sizes 20 and 23. These changes, as shown in the following chart, were implemented through an interim final rule (66 FR 1413, October 29, 2001), and finalized by a final rule (67 FR 11396, March 14, 2002). Changes are shown in bold. Size designation Maximum number of fruit per 8-pound sample 20 27 23 29 25 32 27/28 35 30 38 33 43 36 45 39 49 42 54 45 55 This chart is commonly referred to as the “Size Designation Chart” in the industry. Increasing the maximum number of fruit per 8-pound sample allowed some smaller-sized fruit to be packed into a larger-size category. This change allowed one more piece of fruit to be packed per 8-pound sample in sizes 42 and 39, three more pieces of fruit to be packed in size 36, seven more pieces of fruit to be packed in size 33, and five more pieces of fruit to be packed in sizes 27/28 and 25. Increasing the maximum number of fruit permitted per 8-pound samples during the 2001-02 season enabled handlers to better meet the needs of buyers, because kiwifruit sells by the piece, and buyers desire as much fruit in each container as the container can comfortably hold. The changes to the size designation chart helped reduce the sizing differences between California and imported kiwifruit during the 2001-02 season and allowed more fruit to be sold. However, handlers find that adjustments are still needed in some of the size designations to bring them closer to imported fruit size designations and to allow more accurate sorting into the size categories with handler sizing equipment. Sizing equipment had difficulty during the 2001-02 season distinguishing between sizes. Therefore, at its April 9, 2002, meeting, the Committee unanimously recommended increasing the maximum number of fruit per 8-pound sample for sizes 23, 30, and 36, and reducing the maximum number of fruit per 8-pound sample for size 42. Size 23 will be increased from 29 pieces of fruit per 8-pound sample to 30 pieces, size 30 will be increased from 38 pieces of fruit per 8-pound sample to 39 pieces of fruit, size 36 will be increased from 45 pieces of fruit per 8-pound sample to 46 pieces, and size 42 will be decreased from 54 pieces of fruit per 8-pound sample to 53 pieces. These recommended changes are shown in the following chart in bold. Size designation Maximum number of fruit per 8-pound sample 20 27 23 29 30 25 32 27/28 35 30 38 39 33 43 36 45 46 39 49 42 54 53 45 55 The Committee believes that increasing the number of fruit permitted per 8-pound samples of sizes 23, 30, and 36, and decreasing the number of fruit in 8-pound samples for size 42 will result in more clearly defined size categories and allow sizing equipment to more uniformly separate fruit of different sizes. Additionally, these adjustments will make the four size designations more similar to those for imported fruit. This action will not affect import requirements. The Committee discussed alternatives to these changes. It considered suspending the size designation chart to lower inspection costs and allow handlers to pack similar to imports. However, it did not adopt this option because it concluded inspection costs will not be significantly lowered and because a recent grower survey showed that uniform sizing is one of the most important issues to the California kiwifruit growers. Another suggestion presented was to leave the size designation chart unchanged. The Committee did not adopt this suggestion because it believes that handlers will benefit from the revised numerical counts for sizes 23, 30, 36, and 42. After considering these alternatives, the Committee recommended relaxing the pack requirements for three sizes and tightening the pack requirements for one size. Small and large growers and handlers are expected to benefit from these changes. A reasonable crop estimate for the 2002-03 season is 7.5 million tray equivalents. The average FOB value for the 2001-02 season is estimated to be $3.50 per tray equivalent. The Committee estimated that the changes to the numerical count for size designations 23, 30, 36 and 42 will increase the average FOB value for the 2002-03 season to $3.75 per tray equivalent. It is anticipated that the FOB value for the 2002-03 season will increase by $1,875,000 ($3.75—$3.50 x 7,500,000 tray equivalents). This change will not affect the minimum size and will not allow fruit currently considered “undersized” to be shipped. These changes will not affect import requirements. These changes are expected to help handlers compete more effectively in the marketplace, better meet the needs of buyers, and to improve grower returns. Lot Stamping Requirements Section 920.303
(d)requires all exposed or outside containers of kiwifruit, but not less than 75 percent of the total containers on a pallet, to be plainly marked with the lot stamp number corresponding to the lot inspection conducted by an authorized inspector. It further requires that individual consumer packages of kiwifruit placed directly on a pallet have all outside or exposed packages on a pallet plainly marked with the lot stamp number corresponding to the lot inspection conducted by an authorized inspector or have one inspection label placed on each side of the pallet. However, kiwifruit packed into individual consumer packages within a master container that are being directly loaded into a vehicle for export shipment under the supervision of the inspection service is exempted from the lot stamp number requirement. The lot stamp number is used by the inspection service to identify and locate the corresponding inspector's working papers or notes. Working papers are the documents each inspector completes while performing an inspection on a lot of kiwifruit and the information in the working papers is used by the inspector to determine the grade of the inspected lot. During the 2001 season, the kiwifruit industry began using plastic containers of various dimensions that can hold either bulk or tray packed kiwifruit. Some of these containers are reusable. Kiwifruit packed in reusable plastic containers
(RPCs)is typically delivered to the retailer where the containers are emptied and returned to the clearinghouse for cleaning and redistribution. As RPCs 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, enabling a handler to avoid inspection on a lot or lots of kiwifruit. The industry experimented last season with round adhesive labels on RPCs. The lot stamp number was stamped on the round adhesive label and placed on the RPCs; however, manufacturers found that it was difficult to remove the adhesive label in the wash cycle. Additionally, handlers found that increased labor was needed to affix the adhesive labels and lot stamp number to the plastic containers. Handler members calculated that affixing adhesive labels to RPCs and one-way plastic containers cost the kiwifruit industry approximately $0.10 per container in materials and labor. The inspection service and the Committee have presented their concerns to the manufacturers of these types of containers. 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 plastic container. However, 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 that handlers be allowed to use any method of PLI in accordance with Federal or Federal-State Inspection Service (inspection service) procedures. The Committee estimated that allowing handlers to use any method of PLI acceptable to the inspection service will reduce handler costs by $8,700, and will make handler operations more efficient. This action will not affect import requirements. The Committee discussed alternatives to this change including not changing the lot stamp requirements for plastic containers. After considering this alternative, the Committee recommended relaxing the container marking requirements provided that plastic containers meet any approved method of PLI. The Committee believes that handlers and growers will benefit from such a relaxation. This change is expected to help handlers compete more effectively in the marketplace and to improve grower returns. This action will not affect import requirements. Standard Packaging for Volume Filled Containers Designated by Weight Section 920.302(a)(4) of the order's administrative rules and regulations outlines pack requirements for fresh shipments of California kiwifruit. Section 920.302 (a)(4)(v) requires that all volume filled containers of kiwifruit designated by weight shall hold 22-pounds (10-kilograms) net weight of kiwifruit unless such containers hold less than 10-pounds or more than 35-pounds net weight of kiwifruit. In a volume filled container, fairly uniform size kiwifruit are loosely packed without cell compartments, cardboard fillers or molded trays. Handlers may ship volume filled containers marked by either the appropriate count or net weight of kiwifruit. Handler shipments are based upon the preference of the receiver. In 1994, the Committee unanimously recommended, and USDA established standard packaging for certain volume filled containers packed by weight. At that time, 52 percent of the total crop was packed into volume filled containers. The percentage of the total crop packed into volume filled containers increased to 85 percent during the 2001-02 season. In 2001-02, imports from the Northern Hemisphere (Greece, Italy, and France) totaled approximately 17 percent of the U.S. market share. The majority of imported kiwifruit was shipped in 19.8-pound (9-kilogram) volume filled containers, whereas the order limits California handlers to 22-pound (10-kilogram) net weight volume filled containers. Retailers do not differentiate between an imported 19.8-pound (9-kilogram) and 22-pound (10-kilogram) net weight volume filled container from California. Because buyers pay the same price for each container, the effect is not favorable for California handlers. Section 920.302(a)(4)(v) requires handlers to utilize a standard 22-pound (10-kilogram) net weight standard packaging for volume filled containers that are over 10-pounds or less than 35-pounds net weight. This restriction limits California kiwifruit handlers in meeting buyer's demands for other types of packaging. Therefore, at its April 9, 2002, meeting, the Committee unanimously recommended suspending the standard 22-pound (10-kilogram) net weight packaging requirement for volume filled containers designated by weight for the 2002-03 season. The Committee expects that this suspension will enable California handlers to meet packaging demands of the retailer for volume filled containers; make California kiwifruit more competitive with imports by allowing handlers to pack similar to imports; and reduce handlers' packaging costs. This change will not impact import requirements. The Committee discussed alternatives at the April 9, 2002, meeting. One Committee member suggested leaving the standard packaging requirement unchanged. However, the Committee believes that relaxing the standard packaging requirement of 22-pound (10-kilogram) net weight for volume filled containers designated by weight will allow handlers the flexibility to meet buyer container preferences and to increase sales. The Committee considered other alternatives to revising packing and container requirements; but determined that these suggestions will not adequately address the industry problems. Removal of Obsolete Language Paragraphs
(a)and
(b)of § 920.60 authorize reporting requirements for kiwifruit handlers under the marketing order. Section 920.160 requires each handler who ships kiwifruit to file a report of shipment and inventory data to the Committee no later than the fifth day of the month following such shipment. Handlers who ship less than 10,000 trays or the equivalent thereof, per fiscal year, and who have qualified with the Committee are only required to furnish such report of shipment and inventory data twice each year. Paragraphs (a)(1) through (a)(6) of § 920.160 specify the types of information to be provided on the shipment report. Paragraph (a)(4) requires handlers to report inventory at the end of the reporting period by container; paragraph (a)(5) requires handlers to report the amount of kiwifruit lost in repack; and paragraph (a)(6) requires handlers to report the amount of fruit set aside for processing. The Committee has not been collecting this information from handlers since the early 1990's. Therefore, the Committee unanimously recommended removing these obsolete reporting requirements from § 920.160 of the order's rules and regulations at the April 9, 2002, meeting. It is estimated that the handler burden will not be impacted, as the current shipment report form approved by the Office of Management and Budget
(OMB)under OMB No. 0581-0189 does not contain these data elements. This rule will relax pack and container requirements under the kiwifruit order. Accordingly, this action will not impose any additional reporting or recordkeeping requirements on either small or large kiwifruit handlers. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sectors. USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this proposed rule. In addition, the Committee's meeting was widely publicized throughout the kiwifruit industry and all interested persons were invited to attend the meeting and participate in Committee deliberations on all issues. Like all Committee meetings, the April 9, 2002, meeting was a public meeting and all entities, both large and small, were able to express their views on this issue. Finally, interested persons are invited to submit information on the regulatory and informational 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/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. This rule invites comments on revisions to pack and container requirements currently prescribed under the California marketing order. Any comments received will be considered prior to finalization of this rule. After consideration of all relevant material presented, including the Committee's recommendation, and other information, it is found that this interim final rule, as hereinafter set forth, will tend to effectuate the declared policy of the Act. Pursuant to 5 U.S.C., it is also found and determined upon good cause that it is impracticable, unnecessary, and contrary to the public interest to give preliminary notice prior to putting this rule into effect and that good cause exists for not postponing the effective date of this rule until 30 days after publication in the **Federal Register** because:
(1)This rule relaxes pack and container requirements;
(2)the 2002-2003 harvest is expected to begin during September and this relaxation should be in place as soon as possible to enable handlers to make operational decisions and to cover as much of the harvest as possible;
(3)the Committee unanimously recommended these changes to provide handlers more marketing flexibility at a public meeting and interested parties had an opportunity to provide input; and
(4)this rule provides a 60-day comment period and any comments received will be considered prior to finalization of this rule. List of Subjects in 7 CFR Part 920 Kiwifruit, Marketing agreements, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, 7 CFR part 920 is amended as follows: PART 920—KIWIFRUIT GROWN IN CALIFORNIA 1. The authority citation for 7 CFR part 920 continues to read as follows: Authority: 7 U.S.C. 601-674. § 920.160 [Amended] 2. In § 920.160, paragraphs (a)(4), (a)(5), and (a)(6) are removed. 3. In § 920.302, paragraph (a)(4)(v) is suspended beginning with August 23, 2002 through July 31, 2003, and the table in paragraph (a)(4)(iii) is revised to read as follows: § 920.302 Grade, size, pack, and container regulations.
(a)* * *
(4)* * *
(iii)* * * Column 1 size designation Column 2 maximum number of fruit per 8 pound sample 20 27 23 30 25 32 27/28 35 30 39 33 43 36 46 39 49 42 53 45 55 4. In § 920.303, paragraph
(d)is revised to read as follows: § 920.303 Container marking regulations.
(d)All exposed or outside containers of kiwifruit, but not less than 75 percent of the total containers on a pallet, shall be plainly marked with the lot stamp number corresponding to the lot inspection conducted by an authorized inspector, except for individual consumer packages within a master container and containers that are being directly loaded into a vehicle for export shipment under the supervision of the Federal or Federal-State Inspection Service. Individual consumer packages of kiwifruit placed directly on a pallet shall have all outside or exposed packages on a pallet plainly marked with the lot stamp number corresponding to the lot inspection conducted by an authorized inspector or have one inspection label placed on each side of the pallet. Plastic containers of kiwifruit, placed on a pallet, shall be positive lot identified
(PLI)in accordance with Federal or Federal-State Inspection Service procedures and shall have required information on the cards of the individual containers, as provided in this section of the regulations. Dated: August 16, 2002. A. J. Yates, Administrator, Agricultural Marketing Service. [FR Doc. 02-21364 Filed 8-19-02; 10:25 am]
Connectionstraces to 3
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- 7 CFR 920
- 7 USC 601-674
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