Rule2025-18267
Imported Walnuts; Suspension of Handling Regulations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 22, 2025
Effective
November 6, 2025
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This direct final rule stays the regulation governing imports of walnuts in order to align it with regulations prescribed under the Federal marketing order regulating the handling of walnuts grown in California. This action is required under the Agricultural Marketing Agreement Act of 1937, as amended.
Full Text
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<title>Federal Register, Volume 90 Issue 181 (Monday, September 22, 2025)</title>
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[Federal Register Volume 90, Number 181 (Monday, September 22, 2025)]
[Rules and Regulations]
[Pages 45315-45317]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18267]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 999
[Doc. No. AMS-SC-24-0053]
Imported Walnuts; Suspension of Handling Regulations
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
[[Page 45316]]
ACTION: Direct final rule.
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SUMMARY: This direct final rule stays the regulation governing imports
of walnuts in order to align it with regulations prescribed under the
Federal marketing order regulating the handling of walnuts grown in
California. This action is required under the Agricultural Marketing
Agreement Act of 1937, as amended.
DATES: This direct final rule is effective November 6, 2025, without
further action or notice, unless significant adverse comments are
received by October 22, 2025. If significant adverse comments are
received, the Agricultural Marketing Service will publish a timely
withdrawal of the amendment in the Federal Register.
ADDRESSES: Interested persons are invited to submit written comments
concerning this direct final rule. Comments can be sent to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237.
Comments can also be sent to the Docket Clerk electronically by Email:
<a href="/cdn-cgi/l/email-protection#b3fed2c1d8d6c7daddd4fcc1d7d6c1f0dcdeded6ddc7f3c6c0d7d29dd4dcc5"><span class="__cf_email__" data-cfemail="064b67746d63726f6861497462637445696b6b636872467375626728616970">[email protected]</span></a> or via the internet at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments should reference the document number and
the date and page number of this issue of the Federal Register.
Comments submitted in response to this direct final rule will be
included in the record, will be made available to the public, and can
be viewed at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Please be advised that the
identity of the individuals or entities submitting the comments will be
made public on the internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Joshua R. Wilde, Marketing Specialist,
or Barry Broadbent, Chief, Northwest Region Branch, Market Development
Division, Specialty Crops Program, AMS, USDA; telephone: (503) 326-
2724; or email: <a href="/cdn-cgi/l/email-protection#5a103529322f3b7408740d33363e3f1a2f293e3b743d352c"><span class="__cf_email__" data-cfemail="e7ad88948f9286c9b5c9b08e8b8382a792948386c9808891">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#5b193a292922751929343a3f393e352f1b2e283f3a753c342d"><span class="__cf_email__" data-cfemail="6b290a191912452919040a0f090e051f2b1e180f0a450c041d">[email protected]</span></a>.
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, Market Development
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW, STOP 0237, Washington, DC 20250-0237; telephone: (202) 690-3919; or
email: <a href="/cdn-cgi/l/email-protection#d392bda7bcbabdb6a7a7b6fd90b2a1a7b6a193a6a0b7b2fdb4bca5"><span class="__cf_email__" data-cfemail="80c1eef4efe9eee5f4f4e5aec3e1f2f4e5f2c0f5f3e4e1aee7eff6">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This direct final rule is issued under
section 8e of the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act''.
Section 8e provides that whenever certain specified commodities,
including walnuts, 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 domestically produced
commodities. Marketing Order No. 984 (referred to as the ``Order'')
regulates the handling of walnuts grown in California (7 CFR part 984).
The California Walnut Board (Board) locally administers the Order and
is comprised of growers and handlers of California walnuts operating
within the area of production and a public member.
The Agricultural Marketing Service (AMS) is issuing this direct
final rule in conformance with Executive Order 12866, as amended by
Executive Order 13563. Executive Orders 12866 and 13563 direct agencies
to assess costs and benefits of available regulatory alternatives and,
if regulation is necessary, to select regulatory approaches that
maximize net benefits (including potential economic, environmental,
public health and safety effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, reducing costs, harmonizing rules, and promoting
flexibility. This action falls within a category of regulatory actions
that the Office of Management and Budget (OMB) exempted from Executive
Order 12866 review.
This direct final rule has been reviewed under Executive Order
13175, ``Consultation and Coordination with Indian Tribal
Governments,'' which requires Federal agencies to consider whether
their rulemaking actions would have Tribal implications. AMS has
determined that this rule is unlikely to have substantial direct
effects on one or more Indian Tribes, on the relationship between the
Federal government and Indian Tribes, or on the distribution of power
and responsibilities between the Federal government and Indian Tribes.
This direct final rule has been reviewed under Executive Order
12988, ``Civil Justice Reform.'' This rule is not intended to have
retroactive effect.
This direct final rule stays the regulation governing imports of
walnuts in order to align the walnut import regulation with handling
regulations prescribed under the Order. On October 28, 2021, the Board
recommended formal rulemaking to amend the Order and submitted five
proposed amendments to AMS. Among the Board's proposals were the
removal of grade, quality, size, and inspection requirements for
walnuts handled under the Order. AMS held a public hearing on these
proposals on April 19 and 20, 2022. In preparation for this hearing,
AMS published a notification of hearing on proposed rulemaking on April
1, 2022 (87 FR 19020), providing information for how to submit
testimony and attend the proceedings. Nine industry witnesses testified
at the hearing. All witnesses expressed their support for the proposed
amendments. The witnesses, Board, and the walnut industry were aware
that a corresponding change would need to be made with respect to the
walnut import regulation, as required by section 8e of the Act, when
they made the recommendation to remove handling regulation requirements
from the Order.
Based upon the record of hearing, AMS published a recommended
decision, with an opportunity to file exceptions, on October 25, 2022
(87 FR 64385). AMS subsequently published a proposed rule and
referendum order on March 7, 2023 (88 FR 14083). AMS then conducted a
grower referendum with a voting period of April 3 through April 21,
2023. The proposed amendments to remove grade, quality, size, and
inspection requirements from the Order were supported by approximately
81 percent of growers voting in the referendum, accounting for 88
percent of the volume represented by participating growers. Finally,
AMS published a final rule on August 21, 2023, to amend the Order as
proposed (88 FR 56745). A corresponding change to the walnut import
regulation was required pursuant to section 8e of the Act but was not
incorporated into the final rule referenced above. This direct final
rule addresses the import walnut import regulations.
This direct final rule indefinitely stays regulations governing the
importation of walnuts into the United States. Pursuant to section 8e
of the Act, whenever a marketing order contains any terms or conditions
regulating the grade, size, quality, or maturity of certain commodities
produced in the United States (including walnuts), the importation of
any such commodity ``shall be prohibited unless it complies with the
grade, size, quality, and maturity provisions of such order or
comparable restrictions''. Because the Order no longer contains any
such terms or conditions, it is necessary that a corresponding change
be made to 7 CFR 999.100 with respect to the grade, quality, size, and
inspection requirements imposed on walnuts imported into the United
States. Under Sec. 984.50 of the amended Order, the Board retains
authority to recommend
[[Page 45317]]
regulations to establish new grade, quality, size, and maturity
requirements, subject to approval of the Secretary. Therefore, walnut
import regulations under 7 CFR 999.100 will be stayed and not
eliminated. Should the Board recommend reestablishment of handling
regulations under the Order, which would require a corresponding
lifting of the suspension on the walnut import regulation, AMS would
review any such recommendation and proceed with rulemaking as
appropriate. In accordance with section 8e of the Act, AMS would submit
any subsequent proposal to the United States Trade Representative for
concurrence prior to making a corresponding change to the import
requirements. In addition, AMS has notified the United States Trade
Representative of this current action.
Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this action on small entities. Accordingly, AMS has prepared this
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. At the time this analysis
was prepared, the Small Business Administration (SBA) defined small
agricultural service firms, which would include walnut importers, as
those having annual receipts of less than $34,000,000 (North American
Industry Classification System (NAICS) code 115114, Postharvest Crop
Activities) (13 CFR 121.201).
USDA's Economic Research Service reported that approximately
1,210,000 pounds of fresh or dried walnuts were imported during the
2023-2024 season with a reported total value of $4,693,000. According
to AMS' Compliance Enforcement Management System, approximately 23
firms imported fresh or dried walnuts into the United States over this
same period. Using that data, the average revenue for each of the 23
walnut importers would have been approximately $204,043 ($4,693,000
divided by 23), which is below the $34,000,000 SBA threshold for small
agricultural service firms. As such, all walnut importers may be
considered small business entities according to current SBA
definitions.
This direct final rule indefinitely stays regulations governing the
importation of walnuts into the United States. This action will not
impose any additional costs or regulatory burden on the industry,
including either large or small walnut importers. Should the Board
recommend reestablishment of handling regulations under the Order,
which would require a corresponding lifting of the suspension on the
walnut import regulation, AMS would review any such recommendation and
proceed with rulemaking, as appropriate. In accordance with section 8e
of the Act, AMS would submit any such proposal to the United States
Trade Representative for concurrence prior to making a corresponding
change to the import requirements.
This rule would not impose any additional reporting or
recordkeeping requirements on walnut importers. 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
final rule.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
AMS is issuing this rule as a direct final rule. Although the
Administrative Procedure Act (APA) generally requires notice and
comment rulemaking, section 553 of the APA provides an exception when
the agency, for good cause, finds that notice and public procedure are
``impracticable, unnecessary, or contrary to the public interest.'' 5
U.S.C. 553(b)(B). AMS concludes that general notice and comment is
unnecessary here because this is a noncontroversial action, and AMS
anticipates no adverse comment. The purpose of this direct final rule
is merely to align the walnut import regulations with those under the
Order, as amended, and as required under the Act. This is a regulatory
relaxation, and these changes should have been incorporated into the
final rule published on August 21, 2023 (88 FR 56745).
A 30-day comment period is provided to allow comment on the changes
to the walnut import regulations herein. This period is deemed
appropriate for the reasons stated above and because an amendment is
required to stay the grade, quality, size, and inspection requirements
on imported walnuts to align with the requirements in effect for
domestic walnuts produced under the Order, as amended. If no
significant adverse comments are received, this direct final rule will
become effective on the effective date, without further action or
notice. If significant adverse comments are received, AMS will publish
a timely withdrawal of the amendment in the Federal Register.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this direct final
rule.
List of Subjects in 7 CFR Part 999
Dates, Food grades and standards, Imports, Nuts, Prunes, Raisins,
Reporting and record keeping requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends 7 CFR part 999 as follows:
PART 999--SPECIALTY CROPS; IMPORT REGULATIONS
0
1. The authority citation for 7 CFR part 999 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Sec. 999.100 [Stayed]
0
2. Stay Sec. 999.100 indefinitely.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-18267 Filed 9-19-25; 8:45 am]
BILLING CODE P
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</html>Indexed from Federal Register on September 22, 2025.
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