7 CFR Part 993 — Dried Prunes Produced in California

PART 993—DRIED PRUNES PRODUCED IN CALIFORNIA Authority: 7 U.S.C. 601-674. Source: 26 FR 476, Jan. 19, 1961, unless otherwise noted. Effective Date Note: At 89 FR 13589, Feb. 23, 2024, part 993 was stayed until July 31, 2030. Subpart A—Order Regulating Handling Definitions § 993.1 Secretary. Secretary § 993.2 Act. Act et seq. § 993.3 Person. Person § 993.4 Area. Area § 993.5 Prunes. Prunes § 993.6 Non-French prunes. Non-French prunes § 993.7 French prunes. French prunes § 993.8 Natural condition prunes. Natural condition prunes § 993.9 Processed prunes. Processed prunes § 993.10 Standard prunes. Standard prunes [26 FR 476, Jan. 19, 1961, as amended at 37 FR 861, Jan. 20, 1972] § 993.11 Standard processed prunes. Standard processed prunes § 993.12 Substandard prunes. Substandard prunes [26 FR 476, Jan. 19, 1961, as amended at 37 FR 861, Jan. 20, 1972] § 993.13 Handle. Handle Provided, § 993.14 Handler. Handler § 993.15 Dehydrator. Dehydrator § 993.16 Producer. Producer § 993.17 Ton. Ton § 993.18 Grade. Grade § 993.19a Size. Size [37 FR 861, Jan. 20, 1972] § 993.19b Undersized prunes. Undersized prunes [37 FR 861, Jan. 20, 1972] § 993.20 Crop year. Crop year § 993.21 Domestic. Domestic § 993.21a Proper storage. Proper storage [30 FR 9798, Aug. 6, 1965] § 993.21b Trade demand. (a) Domestic trade demand. (b) Foreign trade demand. [30 FR 9798, Aug. 6, 1965] § 993.21c Salable prunes. Salable prunes [46 FR 61637, Dec. 18, 1981] § 993.21d Reserve prunes. Reserve prunes [30 FR 9798, Aug. 6, 1965] § 993.22 Consumer package. Consumer package § 993.23 Part and subpart. Part subpart Prune Marketing Committee § 993.24 Establishment and membership. A Prune Marketing Committee (herein referred to as the “Committee”), consisting of 22 members with an alternate member for each such member, is hereby established to administer the terms and provisions of this part, of whom with their respective alternates, 14 shall represent producers, 7 shall represent handlers, and 1 shall represent the public. Committee membership shall be allocated in accordance with the following grouping with the alternate positions identically allocated: (a) Three handler members to represent handlers who are cooperative marketing associations of producers (referred to in this part as “cooperative handlers”); (b) Three handler members to represent handlers other than cooperative handlers (referred to in this part as “independent handlers”); (c) One handler member to represent handlers who are cooperative handlers or independent handlers, whichever of such handlers handled as first handlers more than 50 percent of the prunes handled by all handlers during the crop year preceding the year in which nominations are made; (d) Fourteen producer members to be selected from and to represent producers who are members of cooperative marketing associations (referred to in this part as “cooperative producers”) and producers other than “cooperative producers” (referred to in this part as “independent producers”); the number of the producer members for the cooperative producer group or the independent producer group, as the case may be, shall be in the same proportion, as near as practicable, to the total of 14, as the tonnage of prunes handled by the respective group of cooperative handlers or independent handlers as first handlers during the crop year preceding the year in which nominations are made is to the total tonnage of prunes handled by all handlers as first handlers. (e) The public member and alternate shall have no financial interest in the prune industry. [26 FR 476, Jan. 19, 1961, as amended at 46 FR 61636, Dec. 18, 1981] § 993.25 Term of office. The term of office of members, and their respective alternates, shall be two years, ending on May 31 of even numbered years, and any later date which may be necessary for the selection and qualification of their respective successors. § 993.26 Selection. Selection of members of the committee, and their respective alternates, shall be made in the appropriate number specified in § 993.24, by the Secretary from nominees nominated pursuant to this part or, in the discretion of the Secretary, from other eligible persons. § 993.27 Eligibility. Producer members of the Committee shall be at the time of their selection, and during their term of office, producers in the group, for which selected and if to represent a district also producers in the district for which selected, and, except for producer members representing cooperative producers, shall not be engaged in the handling of prunes either in a proprietary capacity or as a director, officer, or employee. Handler members of the Committee shall be handlers in the group they represent or directors, officers, or employees of such handlers. These eligibility requirements shall not apply to the public member and alternate member. [46 FR 61636, Dec. 30, 1981] § 993.28 Nominees. (a) For the purpose of obtaining nominations for producer members to represent independent producers, the Committee shall, with the approval of the Secretary, divide the area into districts giving, insofar as practicable, equal representation to numbers of independent producers and production of prune tonnage by such producers. The number of districts shall be equal to the number of such producer members or seven, whichever is the lesser. Candidates for nomination by independent producers from the various districts shall be obtained at meetings convened by the committee. Following such meetings, the committee shall prepare a separate ballot for each of the districts, or a joint ballot for two or more districts, containing (1) the names of the candidates for each district involved and (2) provision for write-in candidates. The ballot shall be mailed to each independent producer of record in each district. The voting procedure (including the casting of the ballot by mail addressed to the committee), and tabulation of votes shall be in accordance with rules and regulations prescribed by the committee, with the approval of the Secretary. Each voter shall be entitled to cast only one vote for a member nominee and only one vote for an alternate member nominee in a district in which he is a producer, and no voter shall vote for candidates in more than one district. In case he is a producer in more than one district, he shall elect in which of such districts he will vote and notify the committee as to his choice. Whenever the number of producer members to represent independent producers during the ensuing term of office is to exceed seven, one nominee shall be nominated by independent producers in each of the seven districts and an additional nominee for each member in excess of the seven members shall be nominated, without reference to districts, by such seven nominees. The committee shall recommend the establishment of districts, or any changes therein, to the Secretary prior to January 31 of each year in which nominations are made. (b) Before April 16 of each even-numbered year nominations of producer members to represent cooperative producers and handler members to represent cooperative handlers shall be submitted to the Secretary by cooperative marketing associations engaged in the handling of prunes. The number of cooperative producer members and handler members to be nominated by each cooperative marketing association shall bear, as near as practicable, the same percentage as each cooperative marketing association's tonnage of prunes handled as first handler thereof is to the total tonnage handled by all cooperative marketing associations during the preceding crop year. (c) In any year in which nominations are made following a crop year during which the tonnage of prunes handled by independent handlers as first handlers exceeded the tonnage of prunes handled by cooperative handlers as first handlers, nominees for member positions to represent independent handlers shall be nominated as follows: (1) Each of the two independent handlers who handled during such preceding crop year, the two largest percentages of the prune tonnage handled by all independent handlers shall nominate from their respective organizations, one nominee for a handler member and one for an alternate member; (2) Three independent handlers who handled during such preceding crop year the next three largest percentages of the prune tonnage handled by all independent handlers shall nominate from among their organizations, one nominee for a handler member and one for an alternate member; (3) All other independent handlers who handled the remaining percentage of such prune tonnage shall nominate from their organizations, one nominee for a handler member and one for an alternate member. In any year in which nominations are made following a crop year during which the tonnage of prunes handled by cooperative handlers as first handlers exceeded the tonnage of prunes handled by independent handlers as first handlers, nominees for two member and alternate positions to represent the independent handlers referred to in paragraph (c)(1) of this section shall be nominated in accordance with said paragraph (c)(1), and one nominee for the member and one for the alternate position to represent all other independent handlers shall be nominated by the handlers referred to in paragraph (c) (2) and (3) of this section and the votes of such handlers shall be weighted by the tonnage of prunes handled during the preceding crop year by the respective handlers. (d) The committee shall establish with the approval of the Secretary, the procedures by which such nominations, other than by cooperative marketing associations engaged in the handling of prunes, shall be obtained and shall submit such nominations to the Secretary before April 16 of the year in which nominations are made. In the event the committee determines that any nominating procedure specified in this section does not result in equitable representation, it may establish, with the prior approval of the Secretary, such modifications as will tend to assure such representation. (e) The producer and handler members of the Committee selected for a new term of office shall nominate a public member and alternate member at the first meeting following their selection. [31 FR 9713, July 19, 1966, as amended at 46 FR 61636, Dec. 18, 1981] § 993.29 Alternates. An alternate for a member of the committee shall act in the place and stead of such member (a) during his absence, and (b) in the event of his removal, resignation, disqualification, or death, until a successor for such member's unexpired term has been selected and has qualified. Except as otherwise specifically provided in this subpart the provisions of this part applicable to members also apply to alternate members. § 993.30 Failure to nominate. If a nomination for any position on the committee is not received by the Secretary by May 1, the Secretary may select an eligible individual without regard to nominations. § 993.31 Acceptance. Each person selected as a member or alternate member of the committee shall, prior to serving on the committee, qualify by filing with the Secretary a written acceptance within 15 days after receiving notice of his selection. § 993.32 Vacancies. In the event of any committee vacancy occasioned by the removal, resignation, disqualification, or death of any member, or in the event of the failure of any person selected as a member or alternate member to qualify, a successor for the unexpired term shall be nominated within 60 calendar days thereof. Such nominations shall be made in the manner provided for in this subpart, insofar as applicable, except that nominations of nominees for a producer member position to represent independent producers may, at the discretion of the committee, be made to the committee by the incumbent producer members of the committee who represent independent producers. § 993.33 Voting procedure. Decisions of the Committee shall be by majority vote of the members present and voting and a quorum must be present: Provided, [46 FR 61637, Dec. 18, 1981] Effective Date Note: At 70 FR 30613, May 27, 2005, in § 993.33, the words “salable and reserve percentages, and on any matters pertaining to the control or disposition of reserve prunes or to prune plum diversion pursuant to § 993.62,” were suspended indefinitely. § 993.34 Expenses. The members of the committee, and alternates when acting as members, or when alternates' expenses are authorized by the committee, shall serve without compensation but shall be allowed their expenses. [30 FR 9798, Aug. 6, 1965] § 993.35 Powers. The committee shall have the following powers: (a) To administer the terms and provisions of this subpart; (b) To make rules and regulations to effectuate the terms and provisions of this subpart; (c) To receive, investigate, and report to the Secretary complaints of violations of this subpart; and (d) To recommend to the Secretary amendments to this subpart. § 993.36 Duties. The committee shall have, among others, the following duties: (a) To act as intermediary between the Secretary and any producer, dehydrator, or handler; (b) To keep minutes, books, and other records which shall clearly reflect all of its acts and transactions, and such minutes, books, and other records shall be subject to examination by the Secretary at any time; (c) To make, subject to the prior approval of the Secretary, scientific and other studies, and assemble data on the producing, handling, shipping, and marketing conditions relative to prunes, which are necessary in connection with the performance of its official duties; (d) To select, from among its members, a chairman and other appropriate officers, and to adopt such rules and regulations for the conduct of the business of the committee as it may deem advisable; (e) To appoint or employ such other persons as it may deem necessary, and to determine the salaries and define the duties of such persons; (f) To submit to the Secretary not later than the fourth Tuesday of July of each year, a budget of its anticipated expenditures and the recommended rate of assessment for the ensuing crop year, and the supporting data therefor; (g) To submit to the Secretary such available information with respect to prunes as the committee may deem appropriate, or as the Secretary may request; (h) To prepare and submit to the Secretary quarterly statements of the financial operations of the committee, exclusive of reserve prune operations, and to make such statements, together with the minutes of the meetings of said committee, available for inspection at the offices of the committee by producers, dehydrators, and handlers; (i) To prepare and submit to the Secretary annually, as soon as practicable after the end of each crop year and at such other times as the committee may deem appropriate or the Secretary may request, a statement of the committee's financial operations with respect to reserve prunes for such crop year and to make such statement available at the offices of the committee for inspection by producers, dehydrators, and handlers; (j) To cause the books of the committee to be audited by a certified public accountant at least once each crop year, and at such other times as the committee may deem necessary or as the Secretary may request, and two copies of each such audit report shall be submitted to the Secretary and a copy which does not contain confidential data shall be available for inspection at the offices of the committee, by producers, dehydrators, and handlers; (k) To give the Secretary the same notice of meetings of the committee as is given to the members of the committee; (l) To give producers, dehydrators, and handlers reasonable advance notice of meetings of the committee, and to maintain all such meetings open to such persons; (m) To investigate compliance with the provisions of this subpart and with any rules and regulations established pursuant to such provisions; and (n) To establish, with the approval of the Secretary, such rules and procedures relative to administration of this subpart as may be consistent with the provisions contained in this subpart and as may be necessary to accomplish the purposes of the act and the efficient administration of this subpart. [30 FR 9798, Aug. 6, 1965, as amended at 37 FR 861, Jan. 20, 1972] Effective Date Note: At 70 FR 30613, May 27, 2005, in § 993.36, paragraph (i) was suspended indefinitely. § 993.37 Research and development. The committee, with the approval of the Secretary, may establish or provide for the establishment of marketing research and development projects designed to assist, improve, or promote the marketing, distribution, and consumption of prunes. The expense of such projects shall be paid from funds collected pursuant to § 993.81. Marketing Policy § 993.41 Marketing policy. (a) On or before the first Tuesday of each July, the committee shall prepare and submit to the Secretary a report setting forth its recommended marketing policy for the ensuing crop year. If it becomes advisable to modify such policy, because of changed demand, supply, or other conditions, the committee shall formulate a new policy and shall submit a report thereon to the Secretary. Notice of the committee's marketing policy, and of any modifications thereof, shall be given promptly by reasonable publicity to producers, dehydrators, and handlers. (b) In formulating its marketing policy for the ensuing crop year, the committee shall consider and shall include in its report to the Secretary, the following estimates (natural condition basis) and recommendations: (1) The carryover of salable prunes as of August 1; (2) The carryover of reserve prunes as of August 1; (3) The grade and size composition of the salable and reserve carryovers; (4) The quantity of prunes to be produced without regard to possible diversions of prune plums by producers; (5) The probable quality and prune sizes in the crop; (6) The domestic trade demand by uses of prunes; (7) The foreign trade demand by countries or groups of countries; (8) The desirable carryout of salable prunes at the end of the ensuing crop year; (9) The quantity of undersized prunes in the crop, itemized as to French prunes and non-French prunes; (10) The quantity of prunes to be withheld as reserve prunes so as to protect against errors of estimation and permit orderly marketing of the supply; (11) The recommended salable and reserve percentages; (12) The quantity of prune plums, dried weight basis, deemed desirable to be diverted pursuant to § 993.62; (13) Any recommended change in regulations pursuant to §§ 933.49 to 993.53, inclusive; (14) The probable assessable tonnage for the purposes of § 993.81; and (15) The current prices for prunes, the trend and level of consumer income, whether producer prices are likely to exceed parity, and such other factors as may have a bearing on the marketing of prunes or the administration of this part. [30 FR 9798, Aug. 6, 1965, as amended at 37 FR 862, Jan. 20, 1972] Prohibition on Handling § 993.48 Regulation. No handler shall handle prunes except in accordance with the provisions of this part. [30 FR 9799, Aug. 6, 1965] Grade and Size Regulations § 993.49 Incoming regulation. (a) No handler shall receive prunes from producers or dehydrators, other than substandard prunes and undersized prunes, unless such prunes meet the minimum standards for natural condition prunes set forth in § 993.97 (Exhibit A), or as such standards may be modified, or the more restrictive grade regulation established pursuant to this section, and then in effect: Provided, (b) The Secretary, on the basis of a recommendation of the committee or other information, may establish size regulations or more restrictive grade regulations with respect to prunes that may be received by a handler from producers and dehydrators whenever he finds that such action would tend to effectuate the declared policy of the act. (c) In no crop year shall a handler receive from producers or dehydrators prunes, other than as undersized prunes, which pass freely through a round opening with a diameter as follows: For French prunes 23/32 of an inch, and for non-French prunes 28/32 of an inch: Provided, [26 FR 476, Jan. 19, 1961, as amended at 37 FR 862, Jan. 20, 1972; 46 FR 61637, Dec. 18, 1981; 88 FR 82232, Nov. 24, 2023] § 993.50 Outgoing regulation. (a) Except as otherwise specifically provided, no handler shall ship or otherwise make final disposition of prunes which fail to meet the applicable minimum standards set forth in § 993.97 (Exhibit A), or as such standards may be modified, for standard prunes or standard processed prunes. (b) The Secretary, on the basis of a recommendation of the committee or other information, may establish size regulations, pack specifications, or more restrictive grade regulations with respect to prunes that may be shipped or otherwise disposed of by a handler if such action would tend to effectuate the declared policy of the act. If a more restrictive grade regulation is established in connection with § 993.97 (Exhibit A) it shall insofar as practicable apply comparably to both natural condition prunes and processed prunes. When pack specifications are in effect, no handler shall ship prunes in consumer packages, unless such prunes are identified by an appropriate label, seal, stamp, or tag affixed to such container by the handler showing the size of prunes in the lot from which the container was packed. In order to effectuate such orderly marketing of prunes as will be in the public interest, whether prices are above or below parity, no handler shall use descriptive terms in a manner inconsistent with that set forth in this subpart or in any pack specifications or other regulation issued by the Secretary pursuant to this subpart. (c) Non-French prunes: No handler shall ship or otherwise make final disposition of any lot of standard prunes or standard processed prunes of the non-French varieties or any lot which includes non-French prunes in excess of a tolerance to be prescribed by the Secretary on recommendation of the Committee, unless the average count of such non-French prunes contained in any such lot is 40 or less per pound. However, under safeguards to be established by the Committee, any lot containing non-French prunes with an average size count of more than 40 prunes per pound may be shipped to or disposed of in prune product outlets in which they lose their form and character as prunes by conversion prior to consumption. A tolerance as to the permitted deviation of sizes about the average count shall be prescribed by the Secretary, upon recommendation of the Committee. (d) French prunes: No handler shall ship or otherwise make final disposition of any lot of French prunes for human consumption as prunes, or any lot of mixed dried fruit containing French prunes for human consumption as mixed dried fruit, unless the average count of French prunes contained in any such lot is 100 or less per pound. However, under safeguards to be established by the Committee, any lot containing French prunes with an average size count of more than 100 prunes per pound may be shipped to or disposed of in prune product outlets in which they lose their form and character as prunes by conversion prior to consumption. In determining whether any such lot conforms to this minimum size requirement, the following tolerance shall apply: In a sample of 100 ounces, the count per pound of 10 ounces of the smallest prunes shall not vary from the count per pound of 10 ounces of the largest prunes by more than 45 points. The Secretary may, upon the basis of the recommendation and information submitted by the Committee and other available information, modify this tolerance for uniformity of size. (e) No handler shall ship or otherwise make final disposition of any lot of substandard prunes except for use as prune products in which the prunes lose their form and character as prunes by conversion prior to consumption, or for use in non-human consumption outlets: Provided, (f) Notwithstanding the restrictions contained in this section, any handler may transfer prunes from one plant owned by him to another plant owned by him within the area without having an inspection made as provided for in § 993.51. Any handler may ship prunes from his plant to another handler's plant within the area without having an inspection made as provided for in § 993.51, but a report of such inter-handler transfer shall be made promptly by the transferring handler to the committee. The receiving handler shall, before shipping or otherwise making final disposition of such prunes, comply with the requirements of this section and of § 993.51. (g) No handler shall ship or otherwise dispose of, for human consumption, the quantity of prunes determined by the inspection service pursuant to § 993.49(c) to be undersized prunes. However, such handler may, at the direction and under the supervision of the Committee, dispose of such quantity of prunes in nonhuman consumption outlets. Prunes so disposed of shall be of the same variety as, and reasonably comparable in size, to such undersized prunes. The handler shall cause the inspection service to make a determination whether the prunes disposed of by the handler in nonhuman consumption outlets meet such requirements. In making the determination with respect to comparability in size, the inspection service shall apply a tolerance permitting a deviation from the size of the applicable opening established pursuant to § 993.49(c). Any such tolerance, together with any rules and regulations to ensure proper disposition of the prunes and that such prunes are reasonably comparable to the undersized prunes so received, shall be established by the Committee with the approval of the Secretary. The quantity of prunes determined pursuant to § 993.49(c) shall not be deemed to be within the handler's quota for salable prunes fixed by the Secretary within the meaning of section 8a(5) of the Act. [26 FR 476, Jan. 19, 1961, as amended at 37 FR 862, Jan. 20, 1972; 88 FR 82236, Nov. 24, 2023] § 993.51 Inspection and certification. Each handler shall at his own expense, before or upon the receiving, and before the shipping or disposing of prunes, cause an inspection to be made of such prunes to determine whether they meet the applicable grade and size requirements or the pack specifications, including labeling, effective pursuant to this part. Such handler shall obtain a certificate that such prunes meet the aforementioned applicable requirements and shall submit such certificate, or cause it to be submitted, to the committee. Acceptable certificates shall be those issued by inspectors of the Dried Fruit Association of California. The Secretary may designate another inspection service in the event the services of the Association prove unsatisfactory. § 993.52 Modification. Minimum standards, pack specifications or size regulations, including the openings prescribed in § 993.49(c), may be modified by the Secretary, on the basis of a recommendation of the committee or other information, whenever he finds that such modification would tend to effectuate the declared policy of the act. [26 FR 476, Jan. 19, 1961, as amended at 37 FR 862, Jan. 20, 1972] § 993.53 Above parity situations. The minimum standards, the minimum sizes, including the minimum undersized regulation in § 933.49(c), and the provisions of this part relating to administration shall continue in effect irrespective of whether the estimated season average price for prunes is in excess of the parity level specified in section 2(1) of the act. [46 FR 61637, Dec. 18, 1981] Reserve Control Source: 30 FR 9799, Aug. 8, 1965, unless otherwise noted. § 993.54 Establishment of salable and reserve percentages. Whenever the Secretary finds, from the recommendations and supporting information supplied by the committee, or from any other available information, that to establish the percentages of prunes for any crop year which shall be salable prunes and reserve prunes, respectively, or to modify the previously established percentages, would tend to effectuate the declared policy of the act, he shall establish or modify such percentages. The salable and reserve percentages when applied to the natural condition weight of prunes, excluding the quantity of undersized prunes determined pursuant to § 993.49(c), received during the crop year by a handler from producers and dehydrators, plus that diverted tonnage (dried weight natural condition prune basis) on diversion certificates issued pursuant to § 993.62 and credited to or held by him, shall determine the weight of each handler's receipts which are salable prunes and reserve prunes. The total of the salable and reserve percentages shall equal 100 percent. A cooperative marketing association may concentrate the prunes of its producer members before applying the salable and reserve percentages. [30 FR 9799, Aug. 6, 1965, as amended at 37 FR 862, Jan. 20, 1972] § 993.55 Application of salable and reserve percentages after end of crop year. The salable and reserve percentages established for any crop year shall remain in effect after that crop year until salable and reserve percentages are established for another crop year. After such percentages are established, all reserve obligations shall be adjusted to the newly established percentages. [46 FR 61637, Dec. 18, 1981] § 993.56 Reserve obligation. Whenever salable and reserve percentages are in effect for any crop year, the reserve obligation of a handler shall approximate the average marketable content of the handler's receipts and shall be a weight of natural condition prunes equal to the reserve percentage applied to the natural condition weight of prunes, excluding the quantity of undersized prunes determined pursuant to § 993.49(c), such handler receives during the crop year from producers and dehydrators plus that diverted tonnage (dried weight natural condition prune basis) on diversion certificates credited to or held by him which were issued pursuant to § 993.62. However, if the committee determines the requirement as to set-aside reflecting average marketable content of receipts is not essential to achieve program objectives for the crop of a particular season, it may be eliminated for that season by the committee, with the approval of the Secretary. As a prerequisite for making this determination, the committee must find that the resultant set-aside procedures assure that the trade demand for manufacturing prunes, as well as prunes for consumption as prunes, will be met. The salable prunes permitted to be disposed of by any handler in accordance with the provisions of this part shall be deemed to be that handler's quota fixed by the Secretary within the meaning of section 8a(5) of the act. [30 FR 9799, Aug. 8, 1965, as amended at 37 FR 862, Jan. 20, 1972; 88 FR 82236, Nov. 24, 2023] § 993.57 Holding requirement and delivery. Each handler shall at all times, hold, in his possession or under his control, in proper storage for the account of the committee, free and clear of all liens, the quantity of prunes necessary to meet his reserve obligation, less any quantity: (a) For which he has a temporary deferment pursuant to § 993.58(a); (b) of prune plums (dried weight natural condition basis) diverted pursuant to § 993.62 as shown on diversion certificates held by him, or credited by the committee against his reserve obligation; (c) disposed of by him under a sales contract of the committee; (d) delivered by him to the committee, or to a person designated by it, pursuant to its instructions; and (e) for which he is otherwise relieved by the committee of such responsibility to so hold prunes. No handler may transfer a reserve obligation but any handler may, upon notification to the committee arrange to hold reserve prunes on the premises of another handler or in approved commercial storage, under conditions of proper storage. The committee may, after giving reasonable notice, require a handler to deliver to it, or to a person designated by it, f.o.b. handler's warehouse or point of storage, reserve prunes held by him. The committee may require that such delivery consist of natural condition prunes or it may arrange for such delivery to consist of processed prunes. § 993.58 Deferment of time for withholding. (a) Compliance by any handler with the requirement of § 993.57 for withholding reserve prunes may be temporarily deferred to any date desired by the handler, but not later than November 15 of the crop year, upon the execution and delivery by such handler to the committee of a written undertaking that on or prior to the desired date he will have fully satisfied his holding requirement. Such undertaking shall be secured by a bond or bonds to be filed with and acceptable to the committee in the amount or amounts specified, conditioned upon full compliance with such undertaking. (b)(1) Each bond shall be provided by and at the handler's expense, with a surety or sureties acceptable to the committee, and shall be in an amount computed by multiplying the pounds of natural condition prunes for which deferment is desired by the bonding rate. Such bonding rate shall be established by the committee at a level sufficient to achieve the objectives of this part. (2) In case a handler defaults in meeting his deferred withholding requirement, any funds collected by the committee from the bonding company through such default shall be used by the committee to purchase from handlers a quantity of natural condition prunes, up to but not exceeding the quantity on which default occurred. Purchases shall be made from prunes with respect to which the reserve obligation has been met, and shall be of grades, varieties, or sizes and in such containers as the committee specifies in consideration of available reserve prune outlets. Purchases shall be at prices determined to be appropriate by the committee and if more prunes are offered than required by the committee, it shall make the purchases from various handlers as nearly as practicable in proportion to the quantity of their respective offerings at the same price. The committee shall dispose of the prunes acquired as soon as practicable in the most favorable reserve prune outlets and shall deposit the proceeds from such sales, less committee expenses in connection with such transaction, with reserve pool funds for distribution to equity holders. (3) If for any reason the committee is unable to purchase a quantity of prunes as large as the quantity of reserve prunes in default by the handler, any remaining balance of funds received because of the default less expenses of the committee, shall be deposited with reserve pool funds for distribution to equity holders. (c) A handler who has defaulted on his bond shall be credited on his reserve obligation with, and his holding requirement reduced by, that quantity of prunes represented by the sums collected but not more than the extent of his default. § 993.59 Payment to handlers for services. The committee shall pay handlers for necessary services rendered by them in connection with reserve prunes including, but not limited to, inspection, receiving, storing, grading, and fumigation, in accordance with a schedule of payments and conditions established by the Secretary after recommendation by the committee. Producer Diversion § 993.62 Diversion privileges. (a) Prune plums. prune plums (b) Voluntary principle. (c) Authorization. (d) Diversion certificates. Provided, (e) Eligible diversions. (f) Nonparticipation in pool proceeds. (g) Payment of costs. [30 FR 9800, Aug. 6, 1965] Disposition of Reserve Prunes § 993.65 Disposition of reserve prunes. (a) Committee's right of disposition. (b) Methods of disposition. (c) Offers to sell reserve prunes. Provided, (d) Transfer of shares. (e) Distribution of proceeds. [30 FR 9800, Aug. 6, 1965] Reports and Books and Other Records § 993.71 Confidential information. All reports and records furnished or submitted by handlers to the committee which include data or information constituting a trade secret or disclosing of the trade position, financial condition, or business operations of the particular handler from whom received shall be received by, and at all times kept in the custody and under the control of one or more employees of the committee, who shall disclose such information to no person except the Secretary. Notwithstanding the above provisions of this section, information may be disclosed to the committee when reasonably necessary to enable the committee to carry out its functions under this subpart. § 993.72 Reports of acquisitions, sales, uses, and shipments. Each handler shall file such reports of his acquisitions, sales, uses, and shipments of prunes, as may be requested by the committee. § 993.73 Other reports. Upon the request of the committee, each handler shall furnish such other reports and information as are needed to enable the committee to perform its functions under this subpart. § 993.74 Records. Each handler shall maintain such records of prunes received, held and disposed of by him, as are prescribed by the committee and needed by it to perform its functions under this subpart. Such records shall be retained for at least two years beyond the crop year of their applicability. § 993.75 Verification of reports. For the purpose of checking and verifying reports filed by handlers or the operation of handlers under the provisions of this subpart, the Secretary, and the Committee through its duly authorized agents, shall have access to any premises where prunes may be held by any handler and at any time during reasonable business hours, shall be permitted to inspect any prunes so held by such handler and any and all records of such handler with respect to the holding or disposition of all prunes which may be held or which may have been disposed of by him. [37 FR 862, Jan. 20, 1972] Expenses and Assessments § 993.80 Expenses. The committee is authorized to incur such expenses as the Secretary finds are reasonable and likely to be incurred by it during each crop year for the maintenance and functioning of the committee and for such other purposes as the Secretary may, pursuant to the provisions of this subpart, determine to be appropriate. § 993.81 Assessments. (a) Each handler shall pay to the committee, upon demand, with respect to all salable prunes handled by him as the first handler thereof, his pro rata share of all expenses which the Secretary finds are reasonable and likely to be incurred by the committee during each crop year. Each handler's pro rata share shall be the rate of assessment per ton fixed by the Secretary. At any time during or after a crop year the Secretary may increase the rate of assessment to cover unanticipated expenses of the committee or a deficit in assessable tonnage. (b) In order to provide funds to carry out the functions of the committee, the committee may accept advance payments from any handler to be credited toward such assessments as may be levied pursuant to this section against the respective handler. (c) Any money collected as assessments during any crop year and not expended in connection with the committee's operations may be used by the committee for a period of five months subsequent to such crop year. At the end of such period the committee shall, from funds on hand, refund or credit to handler accounts the aforesaid excess. Each handler's share of such excess funds shall be the amount of assessments he has paid in excess of his pro rata share of the actual net expenses of the committee for the preceding crop year. Any money collected from assessments hereunder and remaining unexpended in the possession of the committee at the termination of this part, shall be distributed in such manner as the Secretary may direct: Provided, [26 FR 476, Jan. 19, 1961, as amended at 30 FR 9800, Aug. 6, 1965] § 993.82 Funds. All funds received by the committee pursuant to the provisions of this part shall be used solely for authorized purposes. The Secretary may, at any time, require the committee or its members and alternate members to account for all receipts and disbursements. Miscellaneous Provisions § 993.83 Rights of the Secretary. The members of the committee (including successors or alternates) and any agent or employee appointed or employed by the committee, shall be subject to the removal or suspension by the Secretary, in his discretion, at any time. Each and every decision, determination, or other acts of the committee shall be subject to the continuing right of the Secretary to disapprove of the same at any time, and upon such disapproval, shall be deemed null and void. § 993.84 Personal liability. No member or alternate member of the committee, or any employee, representative, or agent thereof shall be held personally responsible, either individually of jointly with others, in any way whatsoever, to any person, for errors in judgment, mistakes, or other acts, either of commission or omission, as such member, alternate member, employee, representative, or agent, except for acts of dishonesty. § 993.85 Separability. If any provision of this subpart is declared invalid or the applicability thereof to any person, circumstance, or thing is held invalid, the validity of the remainder of this subpart or the applicability thereof to any other person, circumstance, or thing shall not be affected thereby. § 993.86 Derogation. Nothing contained in this subpart is, or shall be construed to be, in derogation or in modification of the rights of the Secretary or of the United States to exercise any powers granted by the act or otherwise, or, in accordance with such powers, to act in the premises whenever such action is deemed advisable. § 993.87 Duration of immunities. The benefits, privileges, and immunities conferred upon any person by virtue of this subpart shall cease upon the termination of this subpart, except with respect to acts done under and during the existence of this subpart. § 993.88 Agents. (a) Authorization by Secretary. (b) Authorization by committee. § 993.89 Effective time. The provisions of this subpart, as well as any amendments to this subpart, shall become effective at such time as the Secretary may declare, and shall continue in force until terminated, or during suspension, in one of the ways specified in § 993.90. § 993.90 Termination or suspension. (a) Failure to effectuate policy of act. (b) Referendum. Provided, (c) Termination of act. § 993.91 Procedure upon termination. Upon the termination of this subpart, the members of the committee then functioning shall continue as joint trustees, for the purpose of liquidating the affairs of the committee. Action by such trustee shall require the concurrence of a majority of the said trustees. Such trustees shall continue in such capacity until discharged by the Secretary, and shall, from time to time, account for all receipts and disbursements and deliver all property on hand, together with all books and records of the committee and the joint trustees, to such person as the Secretary may direct; and shall, upon the request of the Secretary, execute such assignments or other instruments necessary or appropriate to vest in such person full title and right to all the funds, properties, and claims vested in the committee or the joint trustees, pursuant to this subpart. Any person to whom funds, property, or claims have been transferred or delivered by the committee or the joint trustees, pursuant to this section, shall be subject to the same obligations imposed upon the members of the said committee and upon said joint trustees. § 993.92 Effect of termination or amendment. Unless otherwise expressly provided by the Secretary, the termination of this subpart or of any regulation issued pursuant to this subpart, or the issuance of any amendment to either thereof, shall not (a) affect or waive any right, duty, obligation, or liability which shall have arisen or which may thereafter arise in connection with any provision of this subpart or any regulation issued under this subpart, or (b) release or extinguish any violation of this subpart or any regulation issued under this subpart, or (c) affect or impair any rights or remedies of the Secretary, or of any other person, with respect to such violation. § 993.93 Amendments. Amendments to this subpart may be proposed from time to time, by any person or by the committee, and may be made a part of this subpart by the procedures provided under the act. § 993.97 Exhibit A; minimum standards. I. Minimum standards for natural condition prunes: A. Defects. B. Explanation of terms. Off-color (2) Inferior meat condition (3) End cracks 3/8 1/2 (4) Fermentation (5) Skin or flesh damage (a) Callous growth cracks, except end cracks as defined in this section, aggregating more than three-eighths of one inch ( 3/8 (b) Splits or skin breaks exposing flesh and affecting materially the normal appearance of the prunes; (c) Any cracks, splits or breaks open to the pit; (d) Healed or unhealed surface or flesh blemishes caused by insect injury and which materially affect appearance, edibility or keeping quality; (e) Skin damage caused by rain or overdipping to the extent that the prunes cannot be processed normally without material sloughing of the skin. (6) Scab 3/8 3/4 (7) Burned (8) Mold (9) Imbedded dirt (10) Insect infestation C. Maximum tolerances. (1) The tolerance allowance for decay shall not exceed one percent (1%). (2) The combined tolerance allowance for mold, imbedded dirt, insect infestation, and decay shall not exceed five percent (5%). (3) The combined tolerance allowance for fermentation, skin or flesh damage, scab-burned, mold, imbedded dirt, insect infestation, and decay shall not exceed eight percent (8%). (4) The combined tolerance allowance for end cracks, fermentation, skin or flesh damage, scab, burned, mold, imbedded dirt, insect infestation, and decay shall not exceed ten percent (10%), except that the first eight percent (8%) of end cracks shall be given one-half value and any additional percentage of end cracks shall be given full value. (5) The combined tolerance allowance for off-color, inferior meat condition, end cracks, fermentation, skin or flesh damage, scab-burned, mold, imbedded dirt, insect infestation, and decay shall not exceed twenty percent (20%), except that the first eight percent (8%) of end cracks shall be given one-half value and any additional percentage of end cracks shall be given full value. (6) Prunes showing obvious live insect infestation shall be fumigated prior to acceptance. D. Natural condition prunes must be properly dried and cured in original natural condition, without the addition of water, and free from active infestation, so that they are capable of being received, stored and packed without deterioration or spoilage. II. Minimum standards for processed prunes: A. Defects. B. Explanation of terms. Off-color (2) Inferior meat condition (3) End cracks 3/8 1/2 (4) Fermentation (5) Skin or flesh damage (a) Callous growth cracks, except end cracks as defined in this section, aggregating more than three-eighths of one inch ( 3/8 (b) Splits or skin breaks exposing flesh and materially affecting the normal appearance of French prunes; or markedly affecting the normal appearance of varieties other than the French variety; (c) Any cracks, splits or breaks open to the pit; (d) Healed or unhealed surface or flesh blemishes caused by insect injury and which materially affect appearance, edibility or keeping quality. (6) Scab 3/8 3/4 (7) Burned (8) Mold (9) Imbedded dirt (10) Insect infestation C. Maximum tolerances. (1) There shall be no tolerance allowance for live insect infestation. (2) The tolerance allowance for decay shall not exceed one percent (1%). (3) The combined tolerance allowance for mold, imbedded dirt, insect infestation, and decay shall not exceed five percent (5%). (4) The combined tolerance allowance for fermentation, skin or flesh damage, scab, burned, mold, imbedded dirt, insect infestation, and decay shall not exceed eight percent (8)%. (5) The combined tolerance allowance for end cracks, fermentation, skin or flesh damage, scab, burned, mold, imbedded dirt, insect infestation, and decay shall not exceed ten percent (10%), except that the first eight percent (8%) of end cracks shall be given one-half value and any additional percentage of end cracks shall be given full value. (6) The combined tolerance allowance for off-color, inferior meat condition, end cracks, fermentation, skin or flesh damage, scab, burned, mold, imbedded dirt, insect infestation, and decay shall not exceed twenty percent (20%), except that the first eight percent (8%) of end cracks shall be given one-half value and any additional percentage of end cracks shall be given full value. Subpart B—Administrative Requirements Source: 26 FR 8278, Sept. 2, 1961, unless otherwise noted. Definitions § 993.101 Order. Order § 993.102 Committee. Committee [26 FR 8278, Sept. 2, 1961, as amended at 48 FR 57261, Dec. 29, 1983] § 993.103 Terms in the order. Terms defined in the order shall have the same meaning when used in this subpart. § 993.104 Lot. (a) Lot Provided, (b) Lot (1) With respect to in-line inspection either (i) the aggregate quantity of prunes of the same size, other than those rejected by inspection, processed in any continuous production of one calendar day and packed during such day in one size and style of container or (ii) the aggregate quantity of prunes of the same size, other than those rejected by inspection, so processed and held in packing containers for later packaging. (2) With respect to floor inspection either (i) prunes not previously inspected in-line, of the same size, in like containers, bearing the same identification (e.g., brand) if in consumer packages, and offered for inspection as a lot; or (ii) prunes previously inspected in-line but rejected as failing to meet requirements, of the same size, in like containers, processed in any continuous production of one calendar day, and offered for inspection as a new lot. § 993.105 Size count. Size count [26 FR 8278, Sept. 2, 1961. Redesignated at 35 FR 11380, July 16, 1970, and further redesignated at 37 FR 15980, Aug. 9, 1972] § 993.106 In-line inspection. In-line inspection § 993.107 Floor inspection. Floor inspection § 993.108 Non-human consumption outlet. Non-human consumption outlet [26 FR 8278, Sept. 2, 1961; 26 FR 8483, Sept. 9, 1961] § 993.109 Modified definition of non-French prunes. The definition of non-French prunes set forth in § 993.6 is modified to read as follows: Non-French Prunes [38 FR 22887, Aug. 27, 1973] Prune Administrative Committee § 993.128 Nominations for membership. (a) Districts. District No. 1. District No. 2. District No. 3. District No. 4. District No. 5. District No. 6. District No. 7. (b) Voting procedures Independent producers. (2) Independent handler nominees. (ii) In any election year in which four member positions and four alternate member positions are assigned to independent handlers for the ensuing term of office, the Committee shall, prior to April 1 of such year, cause to be held a meeting of the three independent handlers classified in the group specified in § 993.28(c)(2) and a separate meeting of all other independent handlers classified in the group specified in § 993.28(c)(3). Each group at its meeting shall, from among that group, elect one member nominee and one alternate member nominee by plurality vote. Each handler present at the meeting of his group shall be entitled to one vote for a candidate for each position assigned to that group. (iii) In any election year in which only three member positions and three alternate member positions are assigned to independent handlers for the ensuing term of office, the Committee shall, prior to April 1 thereof, cause to be held a meeting of all independent handlers except those classified in the group specified in § 993.28(c)(1). At such meeting one member nominee and one alternate member nominee shall be elected in accordance with the applicable provisions of § 993.28(c). [47 FR 7389, Feb. 19, 1982, as amended at 55 FR 5571, Feb. 16, 1990; 59 FR 8518, Feb. 23, 1994; 64 FR 72912, Dec. 29, 1999] Grade and Size Regulations § 993.149 Receiving of prunes by handlers. (a) Receiving stations General. Receiving station (2) Receiving at dehydrator. (b) Inspection stations. Inspection station (c) Incoming inspection General. (2) Certification. Provided, (d) Conditional provisions Wet or slack-dry prunes. Provided, (2) Prunes with active insect infestation. Provided, (3) High moisture content prunes. (4) Return of prunes to producers and dehydrators. [26 FR 8278, Sept. 2, 1961, as amended at 33 FR 11812, Aug. 21, 1968; 33 FR 12033, Aug. 24, 1968; 33 FR 14172, Sept. 19, 1968; 35 FR 11380, July 16, 1970; 37 FR 15980, Aug. 9, 1972; 39 FR 30343, Aug. 22, 1974; 43 FR 40199, Sept. 11, 1978; 48 FR 57261, Dec. 29, 1983; 88 FR 82236, Nov. 24, 2023] § 993.150 Disposition of prunes by handlers. (a) Inspection stations. (b) Outgoing inspection. (1) The date and place of inspection; (2) The name and address of the handler and of the inspection service; (3) The number and size of packages or the net weight of prunes; (4) The number of the worksheet or worksheets on which the inspector's computations and results of tests are recorded; and (5) A statement that the prunes meet the effective minimum standards for standard prunes, or standard processed prunes, as the case may be. (c) Interhandler transfers. Provided, (d) Tolerances for non-French prunes. (e) Prunes which fail to meet minimum standards Committee's approval of disposition General. (ii) Application for approval. a b c d Provided, (iii) Approval of applications. Provided, (iv) Disapproval of applications; or revocation of approved applications. a b c (v) Evidence of non-human disposition. (vi) Books and records. (2) Out of the area shipments. (3) Inspection of substandard prunes. (i) The date and place of inspection and clearance; (ii) The name and address of the inspection service and of the handler; (iii) The number and kind of packages, the net weight, and the adequacy of the marking; (iv) The lot number or shipping or disposition order number; (v) The committee's approval number; (vi) The destination; and (vii) The actual percentage of off-grade prunes of each group, or combination of groups, of defects in excess of the then current tolerances for standard prunes or standard processed prunes. (f) Pitted prunes For human consumption as such. (ii) No handler shall ship or otherwise make final disposition of any lot of pitted prunes for human consumption as pitted prunes unless these prunes do not exceed an average of 0.5 percent by count of prunes with whole pits and/or pit fragments 2 mm or longer; and four of ten subsamples examined have no more than 0.5 percent by count of prunes with whole pits and/or pit fragments 2 mm or longer. For the purposes of this paragraph (f)(1)(ii), pitted prunes means prunes with the pit removed that are characterized by a uniform depression and minimal skin break where the pit has been removed. (iii) No handler shall ship or otherwise make final disposition of any lot of macerated prunes for human consumption as pitted prunes unless these prunes do not exceed an average of 2 percent by count of prunes with whole pits and/or pit fragments 2 mm or longer; and four of ten subsamples examined have no more than 2 percent by count with whole pits and/or pit fragments 2 mm or longer. For the purposes of this paragraph (f)(1)(iii), macerated prunes means prunes with the pit removed that are characterized by a flattened appearance with slightly more skin breaks where the pit has been removed than with pitted prunes. (2) For use in prune products. Provided, (g) Disposition of undersized prunes Application for and approval of disposition. Provided, a (2) Documentation of disposition of undersized prunes Documentation of shipment or other disposition. a b c d e (3) Tolerances permitting a deviation in prune sizes from applicable undersized openings Undersized French prunes. (ii) Undersized non-French prunes. [26 FR 8280, Sept. 2, 1961, as amended at 27 FR 458, Jan. 17, 1962; 29 FR 2331, Feb. 11, 1964; 33 FR 14172, Sept. 19, 1968; 35 FR 5108, Mar. 24, 1970; 35 FR 11381, July 16, 1970; 37 FR 15980, Aug. 9, 1972; 40 FR 52838, Nov. 13, 1975; 48 FR 57261, Dec. 29, 1983; 57 FR 56243, Nov. 27, 1992; 58 FR 13698, Mar. 15, 1993; 59 FR 10228, Mar. 3, 1994] Reserve Control § 993.156 Application of reserve percentage. The reserve obligation of each handler shall be determined by applying the reserve percentage to the weight of prunes in each lot, after deducting the weight of prunes in such lot shown as a percentage on the applicable inspection certificate as necessary to be removed therefrom pursuant to § 993.49(c), in such manner as may be prescribed in such reserve control regulation established for the crop year in which such lot is received by a handler from a producer or dehydrator. [30 FR 13311, Oct. 20, 1965] § 993.157 Holding and delivery of reserve prunes. (a) Sales and deliveries. (b) Assistance to handlers. (c) Failure to hold and deliver reserve prunes in accordance with reserve obligation. Provided, (d) Excess delivery of prunes to the committee. (e) Holding reserve prunes on other than a handler's premises. (f) Exchange of salable prunes for reserve prunes. (g) Delivery by nonsignatory handlers. Provided, [33 FR 19162, Dec. 24, 1968, as amended at 48 FR 57261, Dec. 29, 1983] § 993.158 Deferment of reserve withholding. Any handler who desires to defer withholding pursuant to the provisions of § 993.58 shall notify the committee on Form PMC 9.1, “Notification of Desire for Deferment of Reserve Withholding”, containing at least the following information: (a) The date and the name and address of the handler; (b) the total salable prunes acquired or under contract with producers and dehydrators; (c) the period for which deferment is requested; and (d) the tonnage of reserve prunes, by categories, on which deferment is requested. The notification shall be accompanied by the undertaking and bond or bonds required by § 993.58. No handler shall defer withholding of reserve prunes until he has filed the required undertaking and bond or bonds with the committee and has received its acceptance. [30 FR 13311, Oct. 20, 1965, as amended at 48 FR 57261, Dec. 29, 1983] § 993.159 Payments for services performed with respect to reserve tonnage prunes. (a) Payment for crop year of acquisition. (1) On or before July 20 of each crop year when the Committee recommends a reserve pool (except the Committee may extend this date by not more than ten business days if warranted by a late crop), the Committee shall hold a meeting to review the costs for necessary services rendered by handlers in connection with reserve prunes. (2) Such amount shall, together with the additional payments, as provided in this section, be in full payment for the costs incurred in connection with but not be limited to the following services: Inspection, receiving, storing, grading, fumigation, and handling. The costs include, but are not limited to: (i) Acquisition costs, which include those for salaries, commission, or brokerage fees, transportation and handling between plants and receiving stations, inspection, and other costs, including container expenses, incidental to acquisition or storage; (ii) Direct labor costs, which include those for weighing, receiving and stacking, grading, preliminary sorting and storing (including that performed by the handler at the receiving station), and loading for shipment or other delivery to the Committee or its designee; (iii) Plant overhead costs, which include those for supervision, indirect labor, fuel, power and water, taxes and insurance on facilities, depreciation and rent, repairs and maintenance (clean-up, etc.), factory supplies and expense, and employee benefits (payroll taxes, compensation insurance, health insurance, pension plan contributions, vacation pay, holiday and other paid days off, and other such costs). (3) The Committee shall survey all handlers to obtain their costs for services performed with respect to reserve tonnage prunes. The Committee will compute the average industry cost for holding reserve pool prunes by adding each handlers' cost data, and dividing the composite figure by the number of handlers participating in the survey. In the event that any handler's cost data is too low or too high, the Committee may choose to exclude the high and low data in computing an industry average. The industry average costs may be rounded to the nearest $0.25. The industry average costs computed by the Committee shall be publicized by the Committee pursuant to paragraph (e) of this section. (b) Reimbursement for required insurance costs. (1) The name and address of the handler; (2) The location(s) where reserve prunes will be held for the account of the Committee and the premium rate per $100 value per annum at each location; (3) The value per ton at which the reserve prunes are insured; and (4) The name and address of the insurance underwriter. (c) Certain additional payments in connection with the holding of reserve prunes for the account of the Committee. (2) Additional payment for reserve tonnage prunes held beyond the crop year of acquisition shall be made in accordance with this paragraph. Each handler holding reserve prunes shall complete such services so that the Committee is assured that the prunes are maintained in good condition. (i) For storage and necessary fumigation, each handler shall be compensated at a per ton rate announced by the Committee in accordance with paragraph (a)(3) of this section: (A) For all or any part of the first 3 months of the succeeding crop year, the rate per ton shall be 10 percent of the yearly rate established for the crop year of acquisition; (B) For all or any part of the second 3 months of the succeeding crop year, the rate per ton shall be 50 percent of the rate established for the first 3 months of the succeeding crop year; (C) For all or any part of the third 3 months of the succeeding crop year, the rate per ton shall be 25 percent of the rate established for the first 3 months of the succeeding crop year; (D) For all or any part of the fourth 3 months of the succeeding crop year, the rate per ton shall be 25 percent of the rate established for the first 3 months of the succeeding crop year; (ii) For all or part of the succeeding crop year, the Committee shall determine the per ton rate for bin rental within the industry and announce bin rental rate to the industry pursuant to paragraph (e) of this section. (iii) For insurance as prescribed in paragraph (b) of this section. (d) Certain additional payments in connection with the delivery of reserve prunes to the Committee or its designee. (2) Whenever the Committee arranges with a handler for the reserve prunes delivered to it or its designee to be in processed and packaged condition, the Committee shall reimburse the handler at the agreed rate, determined by the Committee to be reasonable, for the processing, container, and packaging costs. (e) The Committee shall give reasonable publicity to producer and handler members and alternates who serve on the Committee, commercial dehydrators, handlers, and the cooperative bargaining association(s) of each meeting to consider handler payment rates or any modification thereof, and each such meeting shall be open to them. Similar publicity shall be given to producer and handler members and alternates who serve on the Committee, commercial dehydrators, handlers, and the cooperative bargaining association(s) of each payment rate modification submitted to USDA for review and approval. The Committee shall notify producer and handler members and alternates who serve on the Committee, commercial dehydrators, handlers, and cooperative bargaining association(s) of USDA's action on payment rates and conditions for payment by first class mail and/or by electronic communications. [68 FR 17543, Apr. 10, 2003] Voluntary Diversion § 993.162 Voluntary prune plum diversion. (a) Quantity to be diverted. (1) For prune plums of the French variety, the Committee shall survey at least eight commercial prune dehydrators that are geographically dispersed within the production area to obtain their annual dryaway ratios for each of the preceding five crop years, and compute a five-year average dryaway ratio for each dehydrator. The Committee shall then add together the participating commercial dehydrators' five-year average dryaway ratios for each producing region within the production area, and divide the total by the number of participating commercial dehydrators in that region to compute the dryaway ratio by producing region. In the event any of the annual dryaway ratios for any of the crop years is abnormally high or low in any year, the Committee may replace the abnormal year's data with that of an earlier year. The prune producing regions for which dryaway ratios shall be computed for prune plums of the French variety are as follows: (i) North Sacramento Valley, which includes the counties of Butte, Glenn, Shasta, and Tehama; (ii) South Sacramento, Napa, Sonoma, and Santa Clara Valleys, which includes the counties of Amador, Colusa, Lake, Placer, Solano, Sutter, Yolo, Yuba, Napa, Sonoma, San Benito, and Santa Clara; and (iii) San Joaquin Valley, which includes the counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare. (A) New producing counties within the area. (B) Removal of a county from a production area. (2) For prune plums of the non-French variety, the dryaway ratio shall be 1 pound for each 3.50 pounds of prune plums diverted. The prune-producing region for prune plums of non-French varieties is the State of California. (b) Eligible diversions. (1) Disposing of harvested prune plums under Committee supervision for nonhuman use at a location and in a manner satisfactory to the Committee; (2) Leaving unharvested the entire production of prune plums from a solid block of bearing trees designated by the producer applying for the diversion of removing prune plum trees prior to harvest; and/or (3) Such other diversions as may be authorized by the Committee and approved by the Secretary. (4) In accordance with § 993.62(c), eligible diversion shall not apply to prune plums, which would not, under normal producer practices, be dried and delivered to a handler. On or before July 20 of each crop year when the Committee recommends a reserve pool and diversion program (except the Committee with the approval of the Secretary may extend this date by not more than 10 business days if warranted by a late crop), the Committee shall identify, with the approval of the Secretary, the acceptable method(s) of voluntary prune plum diversion through reasonable publicity to producers, commercial dehydrators, handlers, and the cooperative bargaining association(s). For the purposes of this section, cooperative bargaining association means a nonprofit cooperative association of dried prune producers engaged within the production area in bargaining with handlers as to price and otherwise arranging for the sale of natural condition dried prunes of its members. (c) Applications for diversion By producers. (i) The name and address of the producer; whether the producer is an owner-operator, share-landlord, share-tenant, or cash tenant; and the name and address of any other person or persons sharing a proprietary interest in such prune plums; (ii) The proposed method of diversion and the location where the diversion is to take place; (iii) The quantity and variety of prune plums proposed to be diverted; and (iv) The approximate period of diversion. (v) A deposit fee shall accompany each producer's application to cover costs associated with processing the application and administering the diversion program. The Committee shall compute, with the approval of the Secretary, and announce to the industry, the deposit fee. The deposit fee announced shall be a set dollar amount or a per ton cost based on the tonnage to be diverted. The fee paid by the applicant shall be the greater of these amounts. (2) By dehydrator as agent. (3) Receipt of applications. Provided, (d) Approval of applications. (1) The Committee's approval of an application shall be in writing, and include at least the following: (i) The details as to the method of diversion to be followed; (ii) The method of appraisal to be used by the Committee to determine the quantity of prune plums diverted; (iii) The lesser of either the quantity specified in the application to be diverted, or modification of that quantity as a result of any Committee action to prorate the total quantity to be diverted by all producers; and (iv) Such other information as may be necessary to assist the applicant in meeting the requirements of this section, including the conditions for proof of diversion. (2) If the Committee determines that it cannot approve an application it shall notify the applicant promptly. The Committee shall state the reason(s) for failing to approve the application, and request the applicant to submit, if practicable, an amended application correcting the deficiencies in the original application. (3) The Committee shall establish, and give prompt notice to the industry of a final date by which a producer or dehydrator may modify an approved application, including changing the method of diversion or the quantity of prune plums to be diverted: Provided, (4) If an applicant cancels an approved diversion application prior to diversion, no part of the deposit fee shall be refunded, except upon approval by the Committee following review of all circumstances in the matter. (e) Report of diversion. Provided, (2) Upon completion of the computation of dryaway pursuant to paragraph (a) of this section applicable to the diverter's diversion of prune plums, the Committee shall issue a report of diversion to the producer whose prune plums were diverted for the total quantity, dried weight equivalent, credited for diversion setting forth the computations by which such total quantity was derived. (f) Transferable certificate of diversion General. undersized prunes (2) Issuance to producers. (3) Issuance to a cooperative marketing association. (4) Applicability of certain payments. (g) Costs. Provided, [35 FR 12323, Aug. 1, 1970, as amended at 36 FR 15039, Aug. 12, 1971; 48 FR 57261, Dec. 29, 1983; 68 FR 17270, Apr. 9, 2003; 88 FR 82236, Nov. 24, 2023] Disposition of Reserve Prunes § 993.165 Disposition of reserve prunes. (a) General. (b) Normal outlets. Normal outlets (c) Noncompetitive outlets. Noncompetitive outlets [31 FR 5751, Apr. 14, 1966, as amended at 37 FR 5600, Mar. 17, 1972] Reports and Books and Other Records § 993.172 Reports of holdings, receipts, uses, and shipments. (a) Holdings as of March 31. (b) Receipts by handlers. (c) [Reserved] (d) Shipments by handlers. (1) The date, the name, and address of the handler, and the period covered by the report; (2) The pounds of prunes shipped or otherwise disposed of, other than shipments to or for the account of other handlers as follows: Domestic outlets segregated by uses (including Federal Government agencies); export markets segregated by regions; both domestic and export totals segregated by type of pack (bulk and consumer pack); and pitted prunes (pitted weight) segregated as to total to domestic outlets and total to export markets segregated by regions; (3) The total pounds shipped to or for the account of other handlers, including interhandler transfers; and (4) The total pounds of prunes not covered by, or excluded from, the definition of the term “prunes” (§ 993.5) shipped. (e) Holding of reserve prunes. [26 FR 8281, Sept. 2, 1961, as amended at 30 FR 13311, Oct. 20, 1965; 31 FR 14988, Nov. 29, 1966; 33 FR 19162, Dec. 24, 1968; 48 FR 57261, Dec. 29, 1983; 49 FR 1469, Jan. 12, 1984; 68 FR 37393, June 24, 2003] § 993.173 Reports of accounting. (a) Independent handler's reports of accounting. (1) The names and addresses of the producer or dehydrator, any other person having a financial interest in the prunes, and the handler; (2) The date of the accounting or settlement; (3) The contract or account number; (4) An itemized statement listing each lot of prunes in the delivery, showing the date received, receiving point, weight certificate, or door receipt number, inspection certificate number, variety, crop year of production, and the net weight, if any, of prunes shown by the applicable incoming inspection certificate to be disposed of for nonhuman consumption in accordance with § 993.150(g); (5) The total net weight of prunes to be set aside for nonhuman consumption, and the total net weight received; and (6) The total net weight of each lot, itemized as to salable and reserve prunes by category as developed from inspection certificates. (b) Cooperative marketing associations' reports of accounting. (1) The name and address of the association and the date of the report; (2) The aggregate net weight of prunes, as shown by the applicable incoming inspection certificates, required to be disposed of for nonhuman consumption in accordance with § 993.150(g); and (3) The total net weight of prunes received, itemized by crop years of production, and itemized as to salable and reserve prunes by category as developed from inspection certificates. (c) Carryover and marketing policy information. [30 FR 13311, Oct. 20, 1965, as amended at 35 FR 11381, July 16, 1970; 37 FR 15981, Aug. 9, 1972; 48 FR 57261, Dec. 29, 1983] § 993.174 Records. Each handler shall maintain such records as are necessary to furnish the reports required to be submitted to the Committee by him under this subpart including, but not limited to, records of all transactions on prunes received, held and disposed of by him, and he shall retain such records for at least two years after the end of the crop year in which the applicable transaction occurred. [26 FR 8281, Sept. 2, 1961; 26 FR 8483, Sept. 9, 1961. Redesignated at 30 FR 13312, Oct. 20, 1965] Subpart C—Assessment Rates § 993.347 Assessment rate. On and after August 1, 2022, an assessment rate of $0.33 per ton of salable dried prunes is established for California dried prunes. [88 FR 14484, Mar. 9, 2023] Subpart D—Undersized Prune Requirements § 993.400 Modifications. Pursuant to the authority in § 993.52, the provisions in § 993.49(c) prescribing size openings for undersized prune regulations are hereby modified to permit larger size openings. For French prunes, any undersized regulation may prescribe an opening of 23/32 24/32 28/32 30/32 [40 FR 42531, Sept. 15, 1975] § 993.409 Undersized prune regulation for the 2002-03 crop year. Pursuant to §§ 993.49(c) and 993.52, an undersized prune regulation for the 2002-03 crop year is hereby established. Undersized prunes are prunes which pass through openings as follows: for French prunes, 24/32 30/32 [67 FR 31722, May 10, 2002] Subpart E—Pack Specification as to Size Source: 26 FR 8281, Sept. 2, 1961, unless otherwise noted. Definitions § 993.501 Consumer package of prunes. Consumer package of prunes consumer package § 993.502 Size count. Size count § 993.503 Size category. Size category § 993.504 In-line inspection. In-line inspection § 993.505 Floor inspection. Floor inspection § 993.506 Lot. Lot Specifications as to Size § 993.515 Size categories. For the purpose of this part, the pack specifications prescribed for the packing of prunes in consumer packages shall, subject to the limitation prescribed in § 993.516, be according to those commercially recognized size categories as are listed in paragraph (a) of this section by numerical designation or in paragraph (b) of this section by nomenclature designation. (a) Numerical designations. (b) Nomenclature designations. (1) Extra large; (2) Large; (3) Medium; and (4) Small, breakfast, petite, or economy. (c) Nomenclature designations defined. (1) Extra large (2) Large (3) Medium (4) Small, breakfast, petite, economy [26 FR 8281, Sept. 2, 1961, as amended at 49 FR 35930, Sept. 13, 1984; 88 FR 82236, Nov. 24, 2023] § 993.516 Tolerances and limitations. With respect to in-line inspections and floor inspections, prunes in a particular lot shall, subject to the other applicable requirements of this section, be considered as being according to a particular size category prescribed in § 993.515 if the average size count of the prunes in such lot falls within the range of the size counts specified for such size category, and the count per pound of 10 ounces of the smallest prunes in a sample of 100 ounces varies from the count per pound of 10 ounces of the largest prunes in such sample by no more than 45 points. Labeling § 993.517 Identification. The size category of the prunes in any lot shall be clearly marked by the handler on each consumer package of such prunes, on the parts or panels of the package or label which are normally presented in retail display, in terms of the applicable numerical or nomenclature designation prescribed in § 993.515, which designation shall not be lacking in prominence and conspicuousness. Any handler may, at his option, clearly mark on such consumer package additional information describing in numerical terms the average size count, or particular range of size counts, of the prunes in such lot so long as such numerical terms fall within the range of the size counts of the applicable numerical or nomenclature designation and do not tend to be deceptive as to the actual average size count, or range of the size counts, of the prunes in such lot. Descriptive terms other than synonyms of the prescribed nomenclature designation or words of like connotation, describing the style of pack, variety of prune, or other item of commercial significance may also be marked on the consumer package. Prunes in any lot of which the maximum size count is less than 25 shall be clearly marked by the handler in terms of the applicable numerical designation prescribed in § 993.515(a); and the handler may use nomenclature terms descriptive of size other than the nomenclature designations prescribed in § 993.515(b). [26 FR 8281, Sept. 2, 1961, as amended at 46 FR 38070, July 24, 1981] Compliance § 993.518 Compliance. Whenever the season average price to producers for prunes is below the parity level specified in section 2(1) of the act, no handler shall ship consumer packages of prunes unless such prunes are packed and labeled in accordance with the specifications prescribed in this subpart; and whether prices are above or below parity, no handler shall use the nomenclature designations in § 993.515(b) to describe size categories other than those prescribed pursuant to § 993.515(c). Subpart F—Grade Requirements § 993.601 More restrictive grade regulation. (a) Incoming and outgoing regulation. Exhibit A minimum standards, (1) The combined tolerance allowance for off-color, inferior meat condition, end cracks, fermentation, skin or flesh damage, scab, burned, mold, imbedded dirt, insect infestation, and decay shall not exceed fifteen percent (15%), except that the first eight percent (8%) of end cracks shall be given one-half value and any additional percentage of end cracks shall be given full value. (2) The combined tolerance allowance for mold, brown rot, imbedded dirt, insect infestation, and decay shall not exceed five percent (5%), and, within such tolerance, brown rot shall not exceed three percent (3%). (b) Above parity situations. [27 FR 7540, Aug. 1, 1962, as amended at 59 FR 38113, July 27, 1994] § 993.602 Maximum tolerances. In lieu of the provision prescribed in I C of § 993.97 that the tolerance allowances prescribed therein shall be on a weight basis, the tolerance allowance percentage for each defect or group of defects in I C of § 993.97 shall be derived by dividing the number of prunes in the applicable sample affected with the applicable defect(s) by the total number of prunes in such sample. [39 FR 30344, Aug. 22, 1974]

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