[Federal Register: September 22, 2004 (Volume 69, Number 183)]
[Rules and Regulations]
[Page 56667-56672]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22se04-1]
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Rules and Regulations
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[[Page 56667]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 958 and 980
[Docket No. FV04-958-1 IFR]
Onions Grown in Certain Designated Counties in Idaho and Malheur
County, Oregon; Relaxation of Handling and Import Regulations
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule relaxes the size requirement for pearl onions,
relaxes the minimum grade and size requirements for cipolline onion
varieties, and updates the regulatory text concerning certain reporting
requirements for onions handled under the Idaho-Eastern Oregon onion
marketing order. The marketing order regulates the handling of onions
grown in Idaho and Eastern Oregon and is administered locally by the
Idaho Eastern-Oregon Onion Committee (Committee). This rule also
relaxes the requirements for pearl and cipolline onions under the
import regulations as required by section 8e of the Agricultural
Marketing Agreement Act of 1937. Specifically, this rule changes the
definition of pearl onions to mean onions 2 inches in diameter or less,
establishes a relaxed minimum grade of U.S. No. 2 and relaxed minimum
diameter of 1\1/2\ inches for cipolline onions, and adds clarification
and specificity to the reporting requirements for onions handled for
peeling, chopping, or slicing. The changes are intended to facilitate
the marketing of onions handled under the marketing order, improve
producer returns, and bring the section 8e import regulation into
conformity with the marketing order.
DATES: Effective: September 23, 2004; comments received by November 22,
2004 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; E-mail: moab.docketclerk@usda.gov; or
Internet: http://www.regulations.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: Robert J. Curry, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1220 SW. Third Avenue, suite 385,
Portland, Oregon 97204; telephone: (503) 326-2724, Fax: (503) 326-7440;
or George Kelhart, Technical Advisor, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 130 and Marketing Order No. 958, both as amended (7 CFR
part 958), regulating the handling of onions grown in certain
designated counties in Idaho, and Malheur County, Oregon, hereinafter
referred to as the ``order.'' The order is effective under the
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.''
This rule is also issued under section 8e of the Act, which
provides that whenever certain specified commodities, including onions,
are regulated under a Federal marketing order, imports of these
commodities into the United States are prohibited unless they meet the
same or comparable grade, size, quality, or maturity requirements as
those in effect for the domestically produced commodities.
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive 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 Sec. 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. A
handler is afforded the opportunity for a hearing on the petition.
After the hearing USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of import regulations
issued under section 8e of the Act.
This rule relaxes handling regulations for pearl and cipolline
onions produced in certain designated counties in Idaho, and Malheur
County Oregon, by redefining pearl onions to mean onions 2 inches in
diameter or less, and by establishing a relaxed minimum grade of U.S.
No. 2 and a relaxed minimum diameter of 1\1/2\ inches for cipolline
onion varieties. As provided under section 8e of the Act, these changes
also apply to all imported pearl and cipolline onions. This rule also
adds clarification and specificity to the
[[Page 56668]]
reporting requirements by updating Sec. 958.328(d) for onions handled
for peeling, chopping, or slicing to reflect current form provisions.
These changes were unanimously recommended by the Committee on April 1,
2004, and are intended to facilitate the marketing of Idaho-Eastern
Oregon onions and improve producer returns.
Sections 958.51 and 958.52 of the order authorize the Committee to
recommend, and the USDA to issue, grade, size, quality, pack, and
container regulations for any variety or varieties of onions grown in
the production area. Section 958.53 authorizes the issuance of special
regulations to facilitate the handling of pearl onions as well as other
special purpose shipments. Section 958.65 authorizes the Committee to
collect information from handlers. Regulations specific to the handling
of onions produced in the regulated production area are contained in
Sec. 958.328 of the order's handling regulations, whereas relevant
import regulations are contained in Sec. 980.117 and Sec. 980.501 of
the vegetable import regulations.
Pearl onions and cipolline onions are small, specialty onions with
end uses in both the fresh market (raw and cooked) and processed
market. Although there are relatively few pearl onions and cipolline
onions produced in the Northwest, increased producer interest in both
types of onions, as well as changes in customer preferences, encouraged
this Committee recommendation.
Pearl onions are defined, in part, in both the order and the import
regulations as onions that are produced using specific cultural
practices that limit growth and are inspected and certified as
measuring no larger than the maximum designated size. Factors that can
limit growth, and subsequently final bulb size, include the variety,
plant density, depth planted, photoperiod, and temperature. Pearl
onions are mild flavored white, red, or yellow skinned onions generally
ranging in size from about \3/4\ inch to less than 2 inches in
diameter.
Although pearl onions must be inspected and certified as measuring
no larger than the maximum size designated under the order, they have
been exempt from the minimum grade, size, and maturity requirements of
the order since 1985. In order to be eligible for this exemption, the
onions must be no greater than the stated maximum size limit. Although
exempt from the grade, size, and maturity requirements, shipments of
pearl onions are subject to administrative assessments.
Due to previous changes in handling, marketing, and buyer
preferences, the defined maximum diameter of pearl onions was changed
from 1\1/2\ inches to 1\3/4\ inches in 1990 (55 FR 27825). Similarly,
due to ongoing changes in handling, marketing, and buyer preferences,
this rule further relaxes the size requirements by increasing the
defined maximum diameter of pearl onions to 2 inches.
The pearl onion market is a minor segment of the onion market
served by the Idaho-Eastern Oregon production area. As such, the
Committee continues to believe that pearl onions do not compete
directly with most of the onions produced in this area and that the
current exemption from size, grade, and maturity requirements should
continue.
Due to changing dynamics in the cultural and handling practices in
this region, as well as buyer and consumer preferences, this relaxation
in requirements will help facilitate the efficient movement of pearl
onions into fresh market channels and may also enhance producer
returns.
Cipolline onions--also known as Borettana onions--are traditional
Italian onions that are relatively small and button shaped, and include
white, red, and yellow varieties. As noted earlier, cipolline
(pronounced chip-ah-LEE-nee) onions have constituted a very small
percentage of the onions produced and marketed in the order's regulated
production area in the past. However, due to an increase in cipolline
onion production, and a growing consumer interest in this specialty
onion, the order's grade and size requirements were beginning to
adversely affect the handling and marketing of cipolline onions.
Under the order, white, red, and yellow onion varieties handled for
the fresh market have varying minimum grade and size requirements.
Specifically, white varieties must meet a minimum grade of U.S. No. 1,
1 inch minimum to 2 inches maximum or at least 1\1/2\ inches minimum,
whereas red varieties must meet a minimum grade of U.S. No. 2 and a
minimum diameter of 1\1/2\ inches. The most prevalent onions packed in
the Idaho-Eastern Oregon production area, yellow onion varieties, must
meet a minimum grade of U.S. No. 2 and measure 3 inches or larger in
diameter, or, if packed to U.S. No. 1 grade, they may have a minimum
measurement of 1\3/4\ inches in diameter. Prior to this change,
cipolline onions were handled, graded, and inspected in accordance with
the different order requirements for white, red, and yellow onion
varieties.
Cipolline onions, however, range in size from about 1 inch in
diameter to about 3 inches in diameter, with prevalence found in the 2-
inch to 3-inch sizes. Since most of the cipolline onions produced in
this area are yellow, U.S. No. 2 grade cipolline onions would have
difficulty meeting the three-inch minimum size requirement. Following a
review of the cultural practices, supply situation, and demand
characteristics for cipolline onions, the Committee determined that the
marketing of all cipolline onion varieties would be enhanced if
handlers were held to a minimum grade of U.S. No. 2 and a minimum size
of 1\1/2\inches in diameter--the same minimum requirements for all
Idaho-Eastern Oregon red varieties.
This rule, by establishing a minimum grade and size for all
cipolline onion varieties distinct from the prevalent white, red, and
yellow varieties, will help ensure that marketable cipolline onions
meet the minimum requirements of the order. While the requirements in
place prior to this action allowed for the shipment of white cipolline
onions that graded U.S. No. 1, 1-inch minimum to 2-inches maximum, no
such shipments were ever made from the production area. Therefore, this
change in the minimum grade and size requirements is not expected to
impact the shipment of white cipolline onions.
As mentioned earlier, section 8e of the Act provides that when
certain domestically produced commodities, including onions, are
regulated under a Federal marketing order, imports of that commodity
must meet the same or comparable grade, size, quality, and maturity
requirements. Section 8e also provides that whenever two or more
marketing orders regulating the same commodity produced in different
areas of the United States are concurrently in effect, a determination
must be made as to which of the areas produces the commodity in most
direct competition with the imported commodity. Imports must meet the
requirements established for that particular area.
Grade, size, quality, and maturity regulations have been issued
regularly under both Marketing Order No. 958 and Marketing Order No.
959, which regulates the handling of onions produced in South Texas,
since the marketing orders were established. The import regulations
specify that import requirements for onions are to be based on the
seasonal categories of onions produced in both marketing order areas.
In that regard, imported onions must meet the requirements of the
Idaho-Eastern Oregon onion marketing order during the period June 5
through March
[[Page 56669]]
9 and the South Texas onion marketing order during the period March 10
through June 4 of each season. Pearl and cipolline onions are not
currently produced in South Texas. However, they are produced and
marketed in limited quantities through out the year under the Idaho-
Eastern Oregon onion marketing order. Therefore, the requirements for
imported pearl and cipolline onions should be based upon the
requirements established under Marketing Order No. 958 for the entire
year.
As a consequence, this action changes Sec. 980.117(a)(1) and (2)
and (b)(1) of the onion import regulations by determining that imports
of pearl and cipolline onions during the entire year are in most direct
competition with the marketing of onions produced under Marketing Order
No. 958 and changes Sec. 980.117(h) and (i) by redefining pearl onions
to mean onions produced using specific cultural practices that limit
growth to 2 inches or less in diameter. Accordingly, all cipolline
onions imported must be U.S. No. 2 grade or better and measure 1\1/2\
inches or more in diameter, and pearl onions cannot be larger than 2
inches in diameter.
This rule also clarifies certain handler reporting requirements.
Under the handling regulations, onions that are inspected and certified
as meeting the grade, size, maturity, and pack requirements of the
order and are subsequently peeled, chopped, or sliced for fresh market
within the production area may be handled without reinspection. Section
958.328(d) provides reporting procedures for the handling of such
previously inspected onions for peeling, chopping, or slicing.
The Committee uses Form FV-37, Rehandling of Onions Report, to
collect information from handlers specific to onions handled under this
section. These reporting requirements are in place primarily to ensure
handler compliance with the order's provisions. This rule adds
clarification and specificity to the regulations by updating Sec.
958.328(d) to reflect current Form FV-37 provisions. The change is
expected to minimize handler errors in completing the form and help
ensure timely submission of the completed form to the Committee.
This form has been approved previously by the Office of Management
and Budget (OMB) under OMB Number 0581-0178, Vegetable and Specialty
Crops. This action will not impact the information collection burden
hours currently approved by OMB for this form.
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.
Import regulations issued under the Act are based on those
established under Federal marketing orders which regulate the handling
of domestically produced products.
There are approximately 42 handlers of Idaho-Eastern Oregon onions
who are subject to regulation under the order and approximately 190
onion producers in the regulated area. In addition, based on the most
recent information available, approximately 472 importers of onions are
subject to import regulations and may be affected by this rule. Small
agricultural service firms are defined by the Small Business
Administration (13 CFR 121.201) as those having annual receipts of less
than $5,000,000, and small agricultural producers are defined as those
having annual receipts of less than $750,000.
Based on its assessment records, the Committee estimates that about
39 of the 42 handlers ship less than $5,000,000 worth of onions on an
annual basis. In addition, based on the acreage (20,600), production
(12,000,000 cwt), and total producer revenue ($130,768,000) reported by
the National Agricultural Statistics Service for 2003, and the current
number of onion producers (190), the average annual gross producer
revenue is approximately $688,252. Thus, the majority of the onion
handlers and the onion producers in this industry may be classified as
small entities. Although it is not known how many importers of onions
may be classified as small entities, we believe that many of the 472
importers can be classified as such. There are two firms involved in
altering onions under the order and both firms can be classified as
small entities.
This rule relaxes the size requirement for pearl onions, relaxes
the minimum grade and size requirements for cipolline onions, and
clarifies certain reporting requirements for onions handled under the
Idaho-Eastern Oregon onion marketing order. Authority for this action
is contained in Sec. Sec. 958.51, 958.52, 958.53, and 958.65 of the
order. This rule--unanimously recommended by the Committee at its April
1, 2004, meeting--changes Sec. 958.328(h) by redefining pearl onions
to mean onions produced using specific cultural practices that limit
growth to the same general size as boilers and picklers (as defined in
the U.S. Standards for Grades of Onions), and that have been inspected
and certified as measuring 2 inches in diameter or less. In addition,
this rule changes Sec. 958.328(a)(2) by adding cipolline onions to the
minimum grade and size requirements established for red onion
varieties: U.S. No. 2 grade or better and 1\1/2\ inch diameter or
larger.
Under authority in section 8e of the Act, this rule also changes
Sec. 980.117(a)(1) and (2), and (b)(1), of the onion import
regulations by determining that imports of pearl and cipolline onions
are in most direct competition during the entire year with the
marketing of onions produced under Marketing Order No. 958 and changes
Sec. 980.117(h) and (i) by redefining pearl onions to mean onions
produced using specific cultural practices that limit growth to 2
inches in diameter or less. Although not specifically referenced in the
text of Sec. 980.117, this rule also relaxes the minimum grade and
size for imported cipolline onions to U.S. No. 2 grade and 1\1/2\
inches in diameter.
Finally, this rule updates Sec. 958.328(d) to reflect the current
form used for onions handled for peeling, chopping, or slicing. This
action is intended to facilitate the handling and marketing of pearl
and cipolline onions, increase producer returns, and help minimize
errors in completing Form FV-37 concerning the handling of onions for
peeling, chopping, or slicing, and to help ensure timely submission of
the form to the Committee.
According to the Committee, there is currently one producer and one
handler of pearl and cipolline onions in the regulated production area,
and, as such, statistics relating to the production and marketing of
pearl and cipolline onions in the Idaho-Eastern Oregon onion production
area cannot be made available. The quantity of such specialty onions,
however, would be minor in relation to the prevalent large, globular
shaped Spanish-type onion produced in the production area. Regarding
pearl and cipolline onions produced elsewhere in the United States or
imported into the United States: statistical information is available
[[Page 56670]]
grouped by dry bulb type onions, green onions, or onion sets and is
generally unavailable by variety, size, or color. However, the U.S.
Department of Commerce does track the quantity of pearl onions imported
into the United States with a maximum diameter of .39 inches. In 2003,
for example, approximately 211 hundredweight of pearl onions (less than
or equal to .39 inches in diameter) were imported--in diminishing
order--from Chile, Spain, China, Mexico, and India. In comparison, most
onions imported into the U.S. are produced in Mexico, Canada, Peru, and
Chile. Currently, there are no government statistics on the domestic
production or importation of cipolline onions.
Regarding the impact of this rule on affected entities, relaxing
the size requirement for pearl onions and the grade and size
requirement for cipolline onions is expected to benefit handlers,
importers, and producers. With the change in the definition of pearl
onions to include onions as large as 2 inches in diameter, a
potentially greater quantity of onions will pass inspection and thus be
certified under the order's pearl onion exemption provisions.
Similarly, by relaxing the minimum grade and size requirements for
cipolline onions, a greater quantity of these onions should meet the
order's handling regulations. This could translate into an increased
market for cipolline onions and greater returns for handlers,
importers, and producers. While the requirements in place prior to this
action allowed for the shipment of white cipolline onions that graded
U.S. No. 1, 1-inch minimum to 2 inches maximum, no such shipments were
ever made. Therefore, this action is not expected to impact the
shipment of white cipolline onions.
The clarification of reporting requirements for peeled, chopped,
and sliced onions will have the tangible effect of providing more
clearly understood instructions to handlers who are required to
complete Form FV-37.
The Committee considered several alternatives to the relaxation in
handling regulations for pearl and cipolline onions. The Committee
initiated this action due to a request from the Idaho-Eastern Oregon
onion industry's single pearl and cipolline onion producer and handler
for an all-inclusive exemption from the requirements of the order. A
special subcommittee was formed to study the request. The initial
request was an exemption for an entire specialty product line, which
included onion sets, pearl onions, boiler onions, prepack onions,
cipolline onions, and shallots. The requester's main contention with
the order is that none of his onions fit the profile of the Idaho-
Eastern Oregon onion industry's foremost product, the large, globular
shaped and mild Spanish-type onion. In addition, the requester was of
the view that the Committee's promotion efforts--a major budgetary item
for the Committee--does not benefit him as a producer and marketer of
the small specialty onions. The requester also stated that the cost to
him in complying with the order--in administrative assessments and
inspection fees--is too high when considering his benefits from the
order.
The subcommittee noted that onion sets and shallots do not need to
be considered for further exemptions since neither is regulated under
the marketing order. In addition, the subcommittee determined that
boiler and prepacker size onions should not be exempt from the handling
regulations since both are produced throughout the regulated production
area. Various members of the subcommittee were of the view that the
marketing of out-of-grade and off-size boiler and prepacker onions
would have a negative impact on the marketing of all Idaho-Eastern
Oregon onions.
Further, as noted earlier in this document, pearl onions have been
exempt from the minimum grade, size, and maturity requirements of Sec.
958.328 for several years. The subcommittee determined that an increase
in the maximum size for pearl onions would facilitate the handling and
marketing of these onions. The subcommittee considered increasing the
maximum size under the pearl onion definition from 1\7/8\ inches to as
much as 2\3/4\ inches in diameter. This was rejected, however, because
this would permit handlers to ship these onions exempt from the quality
requirements in competition with larger sized onions subject to such
requirements. The subcommittee also rejected consideration of an
exemption from the current assessment and inspection requirements for
pearl onions as being detrimental to the program. Pearl onions are
inspected under the order to assure that they do not exceed the maximum
diameter permitted.
Finally, the subcommittee considered various exemption and
regulatory options in regard to cipolline onions. A complete exemption
from the order was rejected since the subcommittee considered the
cipolline onions as being a competitive product to the prevalent onion
varieties produced and marketed under the order. Consideration was also
given to establishing a different regulatory scheme for the county in
which the cipolline onions are produced. This was not considered a
viable option due to administrative concerns and the fact cipolline
onions can be produced anywhere within the production area.
The Committee, based on the subcommittee's consideration of the
issue, determined that pearl and cipolline onions are promoted through
the order's generic promotion efforts since a major component of these
efforts are coupled to the Idaho-Eastern Oregon onion logo. In this
regard, the Committee feels that all handlers within the regulated
production area benefit from the order.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large onion 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, USDA has not identified any
relevant Federal rules that duplicate, overlap, or conflict with this
rule.
The Committee's meeting was widely publicized throughout the Idaho-
Eastern Oregon onion industry and all interested persons were invited
to attend the meeting and participate in Committee deliberations. Like
all Committee meetings, the April 1, 2004, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue.
Also, as indicated earlier, the subcommittee appointed to consider
this matter met on February 25, 2004, and discussed this issue in
detail. That meeting was also a public meeting and both large and small
entities were able to participate and express their views. 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 a change to the handling regulations
prescribed under the Idaho-Eastern Oregon onion marketing order and the
onion import regulations. 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
[[Page 56671]]
other information, it is found that this interim final rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this rule.
Pursuant to 5 U.S.C. 553, 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) Handlers will begin shipping onions for the 2004-2005
season in August and to ensure maximum benefit to the industry, this
relaxation should be in effect as soon as possible; (2) the Committee
unanimously recommended these changes at a public meeting and
interested parties had an opportunity to provide input; and (3) this
rule provides a 60-day comment period and any comments received will be
considered prior to finalization of this rule.
List of Subjects
7 CFR Part 958
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
7 CFR Part 980
Food grades and standards, Imports, Marketing agreements, Onions,
Potatoes, Tomatoes.
0
For the reasons set forth in the preamble, 7 CFR parts 958 and 980 are
amended as follows:
0
1. The authority citation for 7 CFR parts 958 and 980 continues to read
as follows:
Authority: 7 U.S.C. 601-674.
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON
0
2. In Sec. 958.328, paragraphs (a)(1) and (2), paragraph (d), and
paragraph (h), are revised to read as follows:
Sec. 958.328 Handling regulation.
* * * * *
(a) Grade and size requirements--(1) White varieties (except
cipolline (Borettana) varieties). Shall be either:
(i) U.S. No. 1, 1 inch minimum to 2 inches maximum diameter; or
(ii) U.S. No. 1, at least 1\1/2\ inches minimum diameter. However,
neither of these two categories of onions may be commingled in the same
bag or other container.
(2) Cipolline (Borettana) varieties and red varieties. U.S. No. 2
or better grade, at least 1\1/2\ inches minimum diameter.
* * * * *
(d) Onions for peeling, chopping, or slicing. Onions that have been
inspected and certified as meeting the requirements of paragraphs (a)
and (b) of this section and that are subsequently peeled, chopped, or
sliced for fresh market within the production area may be handled
without reinspection subject to the following:
(1) Each handler making shipments of onions for altering by
peeling, chopping, or slicing must, within 15 days of delivery of the
onions, provide the committee with a copy of the original inspection
certificate verifying that minimum marketing order requirements have
been met. Furthermore, each handler of onions for peeling, chopping, or
slicing must, within 15 days of delivery of the onions, provide the
handler responsible for alteration of the onions and the committee the
following information on forms provided by the committee:
(i) Business name, address, telephone number, signature and the
date the form was signed;
(ii) The date the onions were delivered to the handler responsible
for alteration of the onions by peeling, chopping, or slicing;
(iii) Information specific to the delivery of such onions to that
handler (e.g., rail car number, truck license number, or ``from
storage'' if both handlers are the same entity);
(iv) Inspection certificate number;
(v) The hundredweight of onions delivered for alteration;
(vi) Such other information that may be required by the committee.
(2) Each handler responsible for alteration of onions for peeling,
chopping, or slicing must, within 15 days of alteration of the onions,
provide the handler and the committee the following information on
forms provided by the committee:
(i) Business name, address, telephone number, signature and the
date the form was signed;
(ii) The date the onions were altered by peeling, chopping, or
slicing;
(iii) The hundredweight of onions after alteration;
(iv) Such other information that may be required by the committee.
Handlers who peel, chop, or slice onions produced outside the
production area must provide the committee with documentation showing
that the onions so prepared were produced outside the production area.
* * * * *
(h) Definitions. The terms ``U.S. No. 1'', ``U.S. Commercial,'' and
``U.S. No. 2'' have the same meaning as defined in the United States
Standards for Grades of Onions (Other than Bermuda Granex-Grano and
Creole Types), as amended (7 CFR 51.2830 through 51.2854), or the
United States Standards for Grades of Bermuda-Granex-Grano Type Onions
(7 CFR 51.3195 through 51.3209), as amended, whichever is applicable to
the particular variety, or variations thereof specified in this
section. The term ``braided red onions'' means onions of red varieties
with tops braided (interlaced). ``Pearl onions'' means onions produced
using specific cultural practices that limit growth to the same general
size as boilers and picklers (defined in the United States Standards
specified in this paragraph), and that have been inspected and
certified as measuring 2 inches in diameter or less. The term
``moderately cured'' means the onions are mature and are more nearly
well cured than fairly well cured. Other terms used in this section
have the same meaning as when used in Marketing Agreement No. 130 and
this part.
PART 980--VEGETABLES; IMPORT REGULATIONS
0
3. In Sec. 980.117, paragraphs (a)(2), (b)(1) and (2), (h), and (i)
are revised to read as follows:
Sec. 980.117 Import regulations; onions.
(a) * * *
(2) Therefore, it is hereby determined that: Imports of onions
during the June 5 through March 9 period, and the entire year for
imports of pearl and cipolline varieties of onions, are in most direct
competition with the marketing of onions produced in designated
counties of Idaho and Malheur County, Oregon, covered by Marketing
Order No. 958, as amended (7 CFR Part 958) and during the March 10
through June 4 period the marketing of imported onions, not including
pearl or cipolline varieties of onions, is in most direct competition
with onions produced in designated counties in South Texas covered by
Marketing Order No. 959, as amended (7 CFR part 959).
(b) * * *
(1) During the period June 5 through March 9 of each marketing
year, and the entire year for pearl and cipolline onions, whenever
onions grown in designated counties in Idaho and Malheur County,
Oregon, are regulated under Marketing Order No. 958, imported onions
shall comply with the
[[Page 56672]]
grade, size, quality, and maturity requirements imposed under that
order.
(2) During the period March 10 through June 4 of each marketing
year, whenever onions grown in designated counties in South Texas are
regulated under Marketing Order No. 959, imported onions, not including
pearl and cipolline onions, shall comply with the grade, size, quality,
and maturity requirements imposed under that order.
* * * * *
(h) Definitions. For the purpose of this section, Onions means all
varieties of Allium cepa marketed dry, except dehydrated, canned, or
frozen onions, pickling onions in brine, onion sets, green onions, or
braided red onions. The term U.S. No. 2 has the same meaning as set
forth in the United States Standards for Grades of Bermuda-Granex-Grano
Type Onions (7 CFR 2851.3195 through 2851.3209), the United States
Standards for Grades of Creole Onions (7 CFR 2851.3955 through
2851.3970), or the United States Standards for Grades of Onions Other
Than Bermuda-Granex-Grano and Creole Types (7 CFR 2851.2830 through
2851.2854), whichever is applicable to the particular variety, and
variations thereof specified in this section. The term moderately cured
means the onions are mature and are more nearly well cured than fairly
well cured. Importation means release from the custody of U.S. Customs
and Border Protection. The term pearl onions means onions produced
using specific cultural practices that limit growth to 2 inches in
diameter or less.
(i) Exemptions. The grade, size, quality and maturity requirements
of this section shall not be applicable to onions imported for
processing, livestock feed, charity, or relief, and pearl onions, onion
sets (plantings), braided red onions, and minimum quantity shipments of
110 pounds, but such onions shall be subject to the safeguard
provisions in Sec. 980.501. Processing includes canning, freezing,
dehydration, extraction (juice) and pickling in brine. Processing does
not include fresh chop, fresh cut, convenience food or other pre-
packaged salad operations. Pearl onions must be inspected for size
prior to entry into the United States.
Dated: September 16, 2004.
Kenneth C. Clayton,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 04-21238 Filed 9-21-04; 8:45 am]
BILLING CODE 3410-02-P