[Federal Register: April 26, 2004 (Volume 69, Number 80)]
[Proposed Rules]
[Page 22689-22702]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26ap04-41]
[[Page 22689]]
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Part IV
Department of Agriculture
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Agricultural Marketing Service
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7 CFR Parts 1150, 1160, et al.
Proposed Rule To Exempt Organic Producers From Assessment by Research
and Promotion Programs; Proposed Rule
[[Page 22690]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1150, 1160, 1205, 1207, 1209, 1210, 1215, 1216, 1218,
1219, 1220, 1230, 1240, 1250, 1260, and 1280
[Docket No. PY-02-006]
RIN 0581-AC15
Proposed Rule To Exempt Organic Producers From Assessment by
Research and Promotion Programs
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would exempt any person producing and
marketing solely 100 percent organic products from paying assessments
to any research and promotion program administered by the Agricultural
Marketing Service (AMS). A proposed rule to exempt any person producing
and marketing solely 100 percent organic products from paying
assessments to certain marketing order programs administered by AMS was
published previously in the Federal Register.
DATES: Comments must be received by May 26, 2004. Pursuant to the
Paperwork Reduction Act, comments on the information collection burden
that would result from this proposal must be received by June 25, 2004.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule to Angela C. Snyder, Office of the Deputy
Administrator, Poultry Programs, Agricultural Marketing Service, U.S.
Department of Agriculture, 1400 Independence Avenue, SW.; STOP 0256,
Room 3932--South; Washington, DC 20250. Comments should be submitted in
duplicate. Comments may also be submitted electronically to:
organicassessment@usda.gov or http://www.regulations.gov. All comments should
reference the docket number and the date and page number of this issue
of the Federal Register. All comments received will be made available
for public inspection at Poultry Programs, AMS, USDA, Room 3932--South;
1400 Independence Avenue, SW.; Washington, DC 20250 during regular
business hours. A copy of this proposed rule may be found at: http://www.ams.usda.gov/2002farmbill/organicexempt
.
Pursuant to the Paperwork Reduction Act (PRA), send comments
regarding the accuracy of the burden estimate, ways to minimize the
burden, including the use of automated collection techniques or other
forms of information technology, or any other aspect of this collection
of information to the above address. Comments concerning the
information collection under the PRA should also be sent to the Desk
Officer for Agriculture, Office of Information and Regulatory Affairs,
Office of Management and Budget, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Angela C. Snyder, Office of the Deputy
Administrator, Poultry Programs, Agricultural Marketing Service, U.S.
Department of Agriculture, 1400 Independence Avenue, SW.; STOP 0256,
Room 3932--South; Washington, DC 20250; (202) 720-4476; (202) 720-5631
(fax); or e-mail at organicassessment@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule has been determined to be ``not significant''
for purposes of Executive Order 12866 and therefore has not been
reviewed by the Office of Management and Budget.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
This proposed rule would not preempt any state or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this rule.
The Commodity Promotion, Research, and Information Act of 1996;
Cotton Research and Promotion Act; Dairy Production Stabilization Act
of 1983; Egg Research and Consumer Information Act; Fluid Milk
Promotion Act of 1990; Hass Avocado Promotion, Research, and
Information Act of 2000; Honey Research, Promotion, and Consumer
Information Act; Mushroom Promotion, Research, and Consumer Information
Act of 1990; Popcorn Promotion, Research, and Consumer Information Act;
Pork Promotion, Research, and Consumer Information Act of 1985; Potato
Research and Promotion Act; Soybean Promotion, Research, and Consumer
Information Act; and Watermelon Research and Promotion Act provide that
administrative proceedings must be exhausted before parties may file
suit in court. Under these acts, any person subject to an order may
file a petition with the Secretary of Agriculture stating that the
order, any provision of the order, or any obligation imposed in
connection with the order is not in accordance with law and request a
modification of the order or to be exempted therefrom. The petitioner
is afforded the opportunity for a hearing on the petition. After the
hearing, the Secretary will make a ruling on the petition. The acts
provide that the district courts of the United States in any district
in which the person is an inhabitant, or has his principal place of
business, has jurisdiction to review the Secretary's ruling, provided a
complaint is filed within 20 days from the date of the entry of ruling.
There are no administrative proceedings that must be exhausted prior to
any judicial challenge to the provisions of the Beef Promotion and
Research Act of 1985.
Background
Section 10607 of the Farm Security and Rural Investment Act of 2002
(Pub. L. 107-171)--known as the 2002 Farm Bill--amended Section 501 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7401) (FAIR Act) on May 13, 2002. The amendment exempts any person that
produces and markets solely 100 percent organic products, and that does
not produce any conventional or nonorganic products, from paying
assessments under a commodity promotion law with respect to any
agricultural commodity that is produced on a certified organic farm as
defined in section 2103 of the Organic Foods Production Act of 1990 (7
U.S.C. 6502).
The U.S. Department of Agriculture is proposing amendments to the
orders and/or rules and regulations of the 16 research and promotion
programs for which it has oversight. These amendments will establish a
provision for organic producers and marketers meeting the specified
criteria and procedures to be exempt from paying assessments for
research and promotion. The Department proposed amendments to the
general regulations affecting 28 marketing order programs in a separate
rule published in the December 2, 2003, Federal Register [68 FR 67381].
The comment period for this proposed rule ended on February 2, 2004.
The comments received in that rulemaking currently are being reviewed
by AMS.
The FAIR Act amendment covers research and promotion programs
established under either freestanding legislation (beef, cotton, eggs,
fluid milk, dairy, Hass avocados, honey, mushrooms, popcorn, pork,
potatoes, soybeans, and watermelons) or the Commodity Promotion,
Research, and Information Act of 1996 (blueberries, lamb, and peanuts).
The FAIR Act amendment would also cover a program for mangos, once
one is established. The mango industry has requested a program, and
rulemaking is ongoing. A second proposed rule on the
[[Page 22691]]
Mango Promotion, Research and Information Order was published in the
October 9, 2003, issue of the Federal Register [68 FR 58556]. In
November 2003, first handlers and importers of mangos voted to approve
a national mango promotion, research, and information order. A final
rule would have to be issued before the mango research and promotion
program could become effective. However, it is anticipated that
provisions similar to those proposed in this document for Hass avocados
(7 CFR part 1219) would be needed to exempt persons producing and
marketing solely 100 percent organic products from paying assessments
under a mango research and promotion program.
Wholly industry-funded and -operated and charged with creating and
expanding markets for the agricultural commodities they represent,
these programs are overseen by AMS, including review of budgets, plans,
and projects. Producers, handlers, importers, and/or others in the
marketing chain pay assessments to these commodity boards to fund the
programs. Industries voluntarily request these programs. Research and
promotion programs allow industries to establish, finance, and carry
out coordinated programs of research, producer and consumer education,
and promotion to improve, maintain, and develop markets for their
commodities.
Under this proposal, language would be added to the orders, plans,
and/or regulations of each program specifying the criteria for
identifying persons eligible to obtain an assessment exemption and
procedures for applying for an exemption. The provision would be
tailored to each of the sixteen programs, all of which have structural
and operational distinctions. The result would be some procedural
differences between the programs' regulatory language. For example,
under the cotton program, producers would be required to reapply for
exemption every year on or before the beginning of the crop year (see
Sec. 1205.519(b) of this proposal). Under the watermelon program,
however, producers would reapply for exemption on or before January 1
of each year (see Sec. 1210.516(b) of this proposal).
Who Is Eligible for Exemption
To be eligible for an exemption, the person must be subject to an
assessment under a research and promotion program. Of the 16 research
and promotion programs covered under this proposed rule, 14 assess
producers. Most of these programs also assess other entities, including
handlers, first handlers, importers, exporters, feeders, and seed stock
producers. The remaining two research and promotion programs assess
processors.
The FAIR Act amendment specifies that to be exempt from a commodity
promotion assessment, a person--meaning an individual, group of
individuals, corporation, association, cooperative, or other business
entity--must produce and market solely 100 percent organic products and
must not produce any nonorganic or conventional products. For purposes
of this proposed rule, ``produce'' means to grow or produce food, feed,
livestock, or fiber or to receive food, feed, livestock, or fiber and
alter that product by means of feeding, slaughtering, or processing.
To meet this requirement, that person need not be just a producer.
Under this proposed rule, producers, handlers, first handlers,
processors, importers, exporters, feeders, and seed stock producers may
be eligible for exemption if they meet the definition of ``produce'' as
outlined in this proposed rule. Regardless, to be exempt, such persons
must possess certification from a USDA-accredited certifying agent and
certify that the farm or handling operation meets the requirements of
100 percent organic as defined in section 2103 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6502).
This definition of ``produce'' would be added to the regulatory
text of all but four of the sixteen programs to ensure that non-
traditional producers meeting the criteria and procedures may obtain an
exemption. Four programs--dairy, peanuts, soybeans, and eggs--are
strictly producer programs. Because traditional producers are the only
parties assessed, it is not necessary to redefine ``produce'' for
purposes of obtaining an exemption. The definition referenced above is
only needed to include assessment payers other than non-traditional
producers.
Examples
A farmer grows 100 percent organic soybeans and
100 percent organic corn. The farmer is eligible for exemption under
the soybean promotion, research, and consumer information program.
A farmer grows 100 percent organic soybeans and
conventional corn. While the farmer's soybean land may be certified
organic as a split farm operation under the Organic Foods Production
Act of 1990 (7 U.S.C. 6502), the farmer is not eligible for exemption
under the soybean promotion, research, and consumer information program
because the farmer's production is not solely 100 percent organic.
An importer imports 100 percent organic live
cattle, feeds and grows the cattle, and is a certified handling
operation. The importer is eligible for exemption under the beef
promotion and research program.
An importer imports 100 percent organic boxed
beef and sells it to another party. The importer is not eligible for
exemption under the beef promotion and research program because the
importer is not a producer as defined in this proposed rule.
An importer imports 100 percent organic boxed
beef. The importer also imports 100 percent organic beef and processes
it into ground beef. The importer is eligible for exemption under the
beef promotion and research program.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 [44 U.S.C.
Chapter 35], this proposed rule also announces that AMS is seeking
emergency approval for a new information collection request enabling
organic entities to apply for an exemption from paying assessments
under the following programs: 7 CFR Parts 1150, 1160, 1205, 1207, 1209,
1210, 1215, 1216, 1218, 1219, 1220, 1230, 1240, 1250, 1260, and 1280.
Title: Organic Producer and Marketer Exemption From Assessment
Under Research and Promotion Programs.
OMB Number: 0581-NEW.
Type of Request: New collection.
Abstract: Research and promotion program, though overseen by AMS,
are wholly industry-funded and -operated and are charged with creating
and expanding markets for the agricultural commodities they represent.
Producers, handlers, importers, and/or others in the marketing chain
pay assessments to these commodity boards to fund the programs.
Research and promotion programs allow industries to establish, finance,
and carry out coordinated programs of research, producer and consumer
education, and promotion to improve, maintain, and develop markets for
their commodities.
On May 13, 2002, Section 501 of the FAIR Act was amended under the
2002 Farm Bill to exempt any person that produces and markets solely
100 percent organic products, and that does not produce any
conventional or non-organic products, from paying assessments under a
commodity promotion law with respect to any agricultural commodity that
is produced on a certified organic farm as defined in Section 2103 of
the Organic Foods Production Act of 1990 (7 U.S.C. 6502). To be exempt
from paying assessments
[[Page 22692]]
under a research and promotion program, the person would submit an
application--``Organic Exemption Request Form''--to the applicable
board or council. The form would need to be submitted to the board,
council, or other party designated by the board or council prior to or
during the initial applicable assessment period, and annually
thereafter, as long as the applicant continues to be eligible for the
exemption. This application would include the applicant's name, name
and address of the company, telephone and fax numbers, a copy of the
applicant's organic farm or organic handling operation certificate
provided by a USDA-accredited certifying agent under the Organic Foods
Production Act of 1990 (7 U.S.C. 6502), and a signed certification that
the applicant meets all of the requirements specified for an assessment
exemption. If the applicant complies with these requirements and is
eligible for a promotion assessment exemption, the board or council
would approve the exemption and notify the applicant within 30 days of
receiving the applicant's application. If the application is
disapproved, the board or council would notify the applicant of the
reason(s) for disapproval. The Secretary may review any decisions made
by the boards or councils at her or his discretion.
Most of the programs require that the person responsible for
remitting assessments on behalf of the exempt party maintain a record
of that party's exemption. In most cases, this is a handler maintaining
a record of an exempt producer. The burdens on these persons for such
recordkeeping requirements are included in the information collection
requests previously approved for all of the programs--Hass avocados
under OMB control number 0581-0197, beef and pork under 0590-0001, lamb
under 0581-0198, and the rest under 0581-0093.
The form's design has been carefully reviewed, and every effort has
been made to minimize any unnecessary recordkeeping requirements. AMS
has determined that there is no practical method for collecting the
required information without the use of this form. The form would be
available from the boards and councils. In addition, an electronic
fillable form would be made available. The information collection would
be used only by authorized board or council employees and
representatives of USDA, including AMS staff. Authorized board and
council employees will be the primary users of the information, and AMS
will be the secondary user.
The request for approval of the new information collection is as
follows:
Form AMS-15, Organic Exemption Request Form
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 30 minutes per response.
Respondents: Eligible Certified Organic Producers and Marketers.
Estimated Number of Respondents: 2,159.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 1,079.5 hours.
Comments: Comments are invited on: (1) Whether the collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden of the
collection of information, including the validity of the methodology
and assumptions used; (3) ways to enhance the quality, utility, and
clarity of the information to be collected; and (4) ways to minimize
the burden of the collection of information on those who are to
respond, including the use of appropriate automated, electronic,
mechanical, or other technological collection techniques of other forms
of information technology.
A 60-day period is provided to comment on the information
collection burden. Comments should reference OMB No. 0581-NEW and be
sent to organicassessment@usda.gov. All comments received will be
available for public inspection during regular business hours at the
same address. All responses to this proposed rule will be summarized
and included in the request for OMB approval. All comments will become
a matter of public record.
Comments concerning the information collection under the PRA should
also be sent to the Desk Officer for Agriculture, Office of Information
and Regulatory Affairs, Office of Management and Budget, Washington, DC
20503.
Regulatory Flexibility Act
In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.) (RFA), the Agricultural Marketing Service (AMS) has examined the
impact of the proposed rule on small entities. The purpose of the RFA
is to fit regulatory actions to the scale of businesses subject to such
actions so that small businesses will not be disproportionately
burdened.
As previously mentioned, producers, handlers, first handlers,
processors, importers, exporters, feeders, and seed stock producers pay
assessments to the national boards or councils that administer various
commodity research and promotion programs, or in some cases to other
parties designated by a board or council to collect assessments.
Initiated as a result of the 2002 Farm Bill, which amended Section 501
of the Federal Agricultural Improvement and Reform Act of 1996 (FAIR
Act), this proposed rule would exempt from assessment those entities
that produce and market solely 100 percent organic products.
To obtain the exemption, eligible producers, handlers, first
handlers, processors, importers, exporters, feeders, and seed stock
producers must submit a request for exemption to the appropriate board
or council on a form. While the proposed rule would impose certain
reporting and recordkeeping requirements on these entities, the form
requires the minimum information necessary to effectively administer
the exemption provision, and its use is necessary for compliance
purposes.
In preparing its initial regulatory flexibility analysis, AMS
attempted to identify the entities that would be affected by the
proposed rule and to examine the potential impact on such entities.
However, information was not available to allow AMS to determine
whether any importers would be covered by this proposed rule under the
beef and pork programs. In addition, information was not available to
allow AMS to identify the respondents under the lamb program as
producers, first handlers, feeders, exporters, and seed stock
producers, so AMS addressed the lamb program in the aggregate to
determine the economic impact.
The estimated respondents providing new information to the boards
or councils and the burden associated with the information collections
is as follows. There would be an estimated 2,159 respondents providing
new information to the boards or councils under the following programs:
Beef: 167 producers, number of importers unknown (167 total).
Blueberries: 7 producers, 0 importers (7 total).
Cotton: 100 producers, 10 importers (110 total).
Dairy: 600 producers.
Eggs: 0 producers.
Fluid milk: 0 processors.
Hass avocados: 60 producers, 0 importers (60 total).
Honey: 10 producers, 0 importers (10 total).
Lamb: 40 respondents (including producers, first handlers, feeders,
seed stock producers, and exporters).
[[Page 22693]]
Mushrooms: 2 producers, 0 importers (2 total).
Peanuts: 54 producers.
Popcorn: 0 processors.
Pork: 18 producers, number of importers unknown (18 total).
Potatoes: 35 producers, 0 importers (35 total).
Soybeans: 1,028 producers.
Watermelons: 27 producers, 1 handler, 0 importers (28 total).
No respondents were identified for the fluid milk, popcorn, and egg
programs. The fluid milk and egg programs exempt smaller entities from
assessment--fluid milk processors processing less than $3 million
pounds and egg producers owning 75,000 or fewer laying hens. Among
assessment payers, no solely 100 percent organic processors or
producers are known; if they exist, they are already exempt for de
minimis reasons. No popcorn processors that produce (as defined in this
rule) solely 100 percent organic product were identified because of the
current nature of the popcorn industry.
The burden associated with the information collection would be
$10,795.00 for all respondents, or $5.00 per respondent. These totals
have been estimated by multiplying the burden hours associated with the
exemption request form by $10.00 per hour, a sum deemed to be
reasonable should the respondents be compensated for their time.
Under the 16 research and promotion programs, those assessed pay
assessments to the boards and councils that administer the programs.
The total annual collections and assessment rates for each board or
council are as follows:
Beef: $83.6 million; $1 per head.
Blueberries: $1.5 million; $12 per ton.
Cotton: $65.2 million; $1 per bale plus 0.5 percent of the value of
the lint in each bale.
Dairy: $255.0 million; 15 cents per cwt.
Eggs: $19.7 million; 10 cents per 30-dozen case of eggs.
Fluid milk: $106.2 million; 20 cents per cwt.
Hass avocados: $16.3 million; 2.5 cents per pound.
Honey: $3.6 million; 1 cent per pound.
Lamb: $3.5 million; $0.005 per pound of live weight, $0.30 per head
on lambs purchased for slaughter.
Mushrooms: $1.7 million; .002 cents per pound.
Peanuts: $6.7 million; 1 percent of the value of the peanuts.
Popcorn: $558,000; 6 cents per cwt.
Pork: $47.8 million; 0.40 percent of the market value.
Potatoes: $8.6 million; 2 cents per cwt.
Soybeans: $77.8 million; \1/2\ of 1 percent of the net market
value.
Watermelons: $1.5 million; 2 cents per cwt for domestic
watermelons, 4 cents per cwt for imported watermelons.
The Small Business Administration [13 CFR 121.201] defines small
agricultural producers as those having annual receipts of $750,000 or
less annually and small agricultural service firms as those having
annual receipts of $5 million or less. These include producers,
feeders, and seed stock producers. Importers, exporters, handlers, and
first handlers would be considered agricultural service firms. Using
these criteria, most if not all of the agricultural producers and
agricultural service firms covered by the proposed rule would be
considered small businesses.
The proposed rule would allow producers and marketers of solely 100
percent organic products to request an exemption from paying
assessments. These exemptions were estimated by multiplying the exempt
volume by the assessment rate, and the amounts for exempt entities
would be as follows:
Beef: producers--$15,197; importers--unknown.
Blueberries: producers--$5,833; importers--$0 ($5,833 total).
Cotton: producers--$52,000; importers--$25,000 ($77,000 total).
Dairy: producers--$1.33 million.
Eggs: producers--$0.
Fluid milk: processors--$0.
Hass avocados: producers--$91,000; importers--$0 ($91,000 total).
Honey: producers--$11,174; importers--$0 ($11,174 total).
Lamb: $2,987 total (includes producers, first handlers, feeders,
seed stock producers, and exporters).
Mushrooms: producers--$14,400; importers--$0 ($14,400 total).
Peanuts: producers--$18,690.
Popcorn: processors--$0.
Pork: producers--$966; importers--unknown.
Potatoes: producers--$45,000; importers--$0 ($45,000 total).
Soybeans: producers--$40,273.
Watermelons: producers--$17,890; handlers--$950; importers--$0
($18,840 total).
Therefore, the estimated net economic impact of this proposed rule
on the respondents is as follows:
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Exemption
Program Paperwork from Net amount
burden costs assessments
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Beef............................................................ $835 $15,197 $14,362
Blueberries..................................................... 35 5,833 5,798
Cotton.......................................................... 550 77,000 76,450
Dairy........................................................... 3,000 1,330,000 1,327,000
Eggs............................................................ 0 0 0
Fluid milk...................................................... 0 0 0
Hass avocados................................................... 300 91,000 90,700
Honey........................................................... 50 11,174 11,124
Lamb............................................................ 200 2,987 2,787
Mushrooms....................................................... 10 14,400 14,390
Peanuts......................................................... 270 18,690 18,420
Popcorn......................................................... 0 0 0
Pork............................................................ 90 966 876
Potatoes........................................................ 175 45,000 44,825
Soybeans........................................................ 5,140 40,273 35,133
Watermelons..................................................... 140 18,840 18,700
-----------------
Total....................................................... 10,795 1,671,360 1,660,565
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[[Page 22694]]
Based on the above figures, this rule should have only a beneficial
economic effect on small entities.
To ensure that AMS is able to thoroughly assess the potential
impact of this proposed rule on affected entities, interested parties
are invited to submit comments, views, and opinions on the probable
regulatory and informational impact of this proposed rule on small
entities. Comments may indicate the size, number, and type of entities
that would be affected by this proposed rule and explain the potential
effects of the proposed amendments on those entities.
In accordance with the PRA, the reporting and recordkeeping
provisions that would be generated by this proposed rule will be
submitted to the Office of Management and Budget (OMB) under OMB No.
0581-NEW.
Reports and forms are periodically reviewed to reduce information
requirements and duplication by industry and public sector agencies. In
addition, USDA has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
There are no viable alternatives to proposing these organic
assessment exemption procedures. The FAIR Act requires USDA to take
this action to lessen the assessment costs for persons who produce and
market solely 100 percent organic products. The anticipated assessment
reductions for eligible persons are expected to greatly outweigh the
costs related to the additional reporting.
A 30-day comment period is provided for interested persons to
submit written comments on the criteria for identifying persons
eligible to obtain an assessment exemption and the procedural details
for obtaining an exemption under the various research and promotion
programs. Thirty days is deemed appropriate because this action was
mandated by Congress under the 2002 Farm Bill and is intended to
provide relief to producers and marketers of solely 100 percent organic
products. Pursuant to the Paperwork Reduction Act, comments on the
information collecting burden must be received within 60 days after the
date of publication of this proposed rule in the Federal Register.
List of Subjects
7 CFR Part 1150
Dairy products, Reporting and recordkeeping requirements, Research.
7 CFR Part 1160
Fluid milk products, Milk, Promotion.
7 CFR Part 1205
Advertising, Agricultural Research, Cotton, Reporting and
recordkeeping requirements.
7 CFR Part 1207
Advertising, Agricultural research, Potatoes, Reporting and
recordkeeping requirements.
7 CFR Part 1209
Advertising, Agricultural Research, Marketing agreements,
Mushrooms, Reporting and recordkeeping requirements.
7 CFR Part 1210
Administrative practice and procedure, Advertising, Agricultural
research, Reporting and recordkeeping requirements, Watermelons.
7 CFR Part 1215
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Popcorn, Promotion, Reporting and
recordkeeping requirements.
7 CFR Part 1216
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Peanut promotion, Reporting and
recordkeeping requirements.
7 CFR Part 1218
Administrative practice and procedure, Advertising, Blueberries,
Consumer information, Marketing agreements, Blueberry promotion,
Reporting and recordkeeping requirements.
7 CFR Part 1219
Administrative practice and procedure, Advertising, Consumer
information, Hass avocados, Marketing agreements, Promotion, Reporting
and recordkeeping requirements.
7 CFR Part 1220
Administrative practice and procedure, Advertising, Agricultural
research, Marketing agreements, Soybeans and soybean products,
Reporting and recordkeeping requirements.
7 CFR Part 1230
Administrative practice and procedure, Advertising, Agricultural
research, Marketing agreement, Meat and meat products, Pork and pork
products.
7 CFR Part 1240
Advertising, Agricultural research, Honey, Imports, Reporting and
recordkeeping requirements.
7 CFR Part 1250
Administrative practice and procedure, Advertising, Agricultural
research, Eggs and egg products, Reporting and recordkeeping
requirements.
7 CFR Part 1260
Administrative practice and procedure, Advertising, Agricultural
research, Imports, Marketing agreements, Meat and meat products,
Reporting and recordkeeping requirements.
7 CFR Part 1280
Administrative practice and procedure, Advertising, Consumer
information, Lamb and lamb products, Marketing agreements, Reporting
and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR Parts 1150, 1160,
1205, 1207, 1209, 1210, 1215, 1216, 1218, 1219, 1220, 1230, 1240, 1250,
1260, and 1280 are proposed to be amended as follows:
PART 1150--DAIRY PROMOTION
1. The authority citation for Part 1150 is revised to read as
follows:
Authority: 7 U.S.C. 4501-4514 and 7 U.S.C. 7401.
2. Add a new Sec. 1150.157 to read as follows:
Sec. 1150.157 Assessment exemption.
(a) A producer described in Sec. 1150.152(a) and (b) who produces
and markets solely 100 percent organic products and does not produce
any conventional or non-organic products shall be exempt from the
payment of assessments on milk provided the milk is produced on a
certified organic farm as defined in section 2103 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6502).
(b) To apply for an exemption under this section, a producer
pursuant to Sec. 1150.152(a) and (b) shall submit a request for
exemption to the Board on a form provided by the Board at any time
initially and annually thereafter on or before July 1 as long as the
producer continues to be eligible for the exemption.
(c) The request shall include the following: the producer's name
and address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502), and a signed certification that the applicant meets all of the
requirements specified
[[Page 22695]]
in paragraph (a) of this section for an assessment exemption.
(d) If a producer described in Sec. 1150.152(a) and (b) complies
with the requirements of this section, the Board will grant an
assessment exemption and issue a Certificate of Exemption to the
producer within 30 days of receipt of the producer's request.
(e) The producer described in paragraph (c) of this section shall
provide a copy of the Certificate of Exemption to each person
responsible for remitting assessments to the Board on behalf of the
producer pursuant to Sec. 1150.152.
(f) The person responsible for remitting assessments to the Board
pursuant to Sec. 1150.152 shall maintain records showing the exempt
producer's name and address and the exemption number assigned by the
Board pursuant to Sec. 1150.172.
3. Revise Sec. 1150.187 to read as follows:
Sec. 1150.187 Paperwork Reduction Act assigned number.
The information collection and recordkeeping requirements contained
in Sec. Sec. 1150.133, 1150.152, 1150.153, 1150.157, 1150.171,
1150.172, and 1150.273 of these regulations (7 CFR Part 1150) have been
approved by the Office of Management and Budget (OMB) under the
provisions of 44 U.S.C. Chapter 35 and have been assigned OMB Control
Number 0581-0093.
PART 1160--FLUID MILK PROMOTION
4. The authority citation for Part 1160 is revised to read as
follows:
Authority: 7 U.S.C. 6401-6417 and 7 U.S.C. 7401.
5. In Sec. 1160.211, paragraph (a)(1) is revised to read as
follows:
Sec. 1160.211 Assessments.
(a)(1) Each fluid milk processor shall pay to the Board or its
designated agent an assessment of $.20 per hundredweight of fluid milk
products processed and marketed commercially in consumer-type packages
in the United States by such fluid milk processor. Any fluid milk
processor who markets milk of its own production directly to consumers
as prescribed under section 113(g) of the Dairy Production
Stabilization Act of 1983 (7 U.S.C. 4504(g)), and not exempt under
Sec. 1160.108 or Sec. 1160.215, shall also pay the assessment under
this subpart. The Secretary shall have the authority to receive
assessments on behalf of the Board.
* * * * *
6. Section 1160.215 is added to read as follows:
Sec. 1160.215 Assessment exemption.
(a) No assessment shall be required on fluid milk products exported
from the United States.
(b) A fluid milk processor described in Sec. 1160.211(a) who
produces and markets solely 100 percent organic products, and who does
not produce any conventional or non-organic products, shall be exempt
from the payment of assessments on fluid milk products produced on a
certified organic farm as defined in section 2103 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6502). For purposes of this section,
produce means to grow or produce food, feed, livestock, or fiber or to
receive food, feed, livestock, or fiber and alter that product by means
of feeding, slaughtering, or processing.
(c) To apply for an assessment exemption, a fluid milk processor
described in Sec. 1160.211 paragraph (a) shall submit a request for
exemption to the Board on a form provided by the Board at any time
initially and annually thereafter on or before July 1 as long as the
fluid milk processor continues to be eligible for the assessment
exemption.
(d) The request shall include the following: The fluid milk
processor's name and address, a copy of the organic farm or organic
handling operation certificate provided by a USDA-accredited certifying
agent as defined in section 2103 of the Organic Foods Production Act of
1990 (7 U.S.C. 6502), and a signed certification that the applicant
meets all of the requirements specified in paragraph (b) of this
section for an assessment exemption.
(e) The Board will grant an assessment exemption to any fluid milk
processor meeting the criteria in Sec. 1160.215(b) and issue a
Certificate of Exemption to the fluid milk processor within 30 days of
receipt of the fluid milk processor's request, provided such fluid milk
processor meets the requirements of this section.
PART 1205--COTTON RESEARCH AND PROMOTION
7. The authority citation for Part 1205 is revised to read as
follows:
Authority: 7 U.S.C. 2101-2118 and 7 U.S.C. 7401.
8. Section 1205.519 is added to read as follows:
Sec. 1205.519 Organic exemption.
(a) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or nonorganic
products, shall be exempt from the payment of assessments with respect
to any cotton that is produced on a certified organic farm as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502). For purposes of this section, produce means to grow or produce
food, feed, livestock, or fiber or to receive food, feed, livestock, or
fiber and alter that product by means of feeding, slaughtering, or
processing.
(b) To apply for an exemption under this section, an eligible
cotton producer shall submit a request for exemption to the Board--on a
form provided by the Board--at any time initially and annually
thereafter on or before the beginning of the crop year as long as the
producer continues to be eligible for the exemption.
(c) The request shall include the following: the producer's name
and address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502), and a signed certification that the applicant meets all of the
requirements specified in paragraph (a) of this section for an
assessment exemption.
(d) If the producer complies with the requirements of this section,
the Board will grant the exemption and issue a Certificate of Exemption
to the producer within 30 days of receipt of the producer's
application. The producer shall provide a copy of the Certificate of
Exemption to each handler to whom the producer sells cotton. The
handler shall maintain records showing the exempt producer's name and
address and the exemption number assigned by the Board.
(e) An importer who meets the criteria in paragraph (a) of this
section may submit documentation to the Board and request an exemption
from assessment on 100 percent organic cotton and 100 percent organic
cotton products--on a form provided by the Board--at any time initially
and annually thereafter on or before the beginning of the crop year as
long as the importer continues to be eligible for the exemption. This
documentation shall include a copy of the organic farm or organic
handling operation certificate provided by a USDA-accredited certifying
agent as defined in section 2103 of the Organic Foods Production Act of
1990 (7 U.S.C. 6502) and a signed certification that the applicant
meets all of the requirements specified for an assessment exemption. If
the importer complies with the requirements of this section, the Board
will grant the exemption and issue a
[[Page 22696]]
Certificate of Exemption to the importer within 30 days of receipt of
the importer's application. The Board will also issue the importer a 9-
digit alphanumeric Harmonized Tariff Schedule (HTS) classification
valid for 1 year from the date of issue. This HTS classification should
be entered by the importer, in the appropriate location as determined
by the U.S. Customs Service, on the Customs entry documentation. Any
line item entry of 100 percent organic cotton and cotton products
bearing this HTS classification assigned by the Board will not be
subject to assessments.
PART 1207--POTATO RESEARCH AND PROMOTION
9. The authority citation for Part 1207 is revised to read as
follows:
Authority: 7 U.S.C. 2611-2627 and 7 U.S.C. 7401.
10. Section 1207.514 is added to read as follows:
Sec. 1207.514 Exemption for organic potatoes.
(a) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or nonorganic
products, shall be exempt from the payment of assessments with respect
to any potatoes that are produced on a certified organic farm as
defined in section 2103 of the Organic Foods Production Act of 1990 (7
U.S.C. 6502). For purposes of this section, produce means to grow or
produce food, feed, livestock, or fiber or to receive food, feed,
livestock, or fiber and alter that product by means of feeding,
slaughtering, or processing.
(b) To apply for an exemption under this section, the producer
shall submit a request for exemption to the Board--on a form provided
by the Board--at any time initially and annually thereafter on or
before July 1 as long as the producer continues to be eligible for the
exemption.
(c) The request shall include the following: the producer's name
and address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502), and a signed certification that the applicant meets all of the
requirements specified in paragraph (a) of this section for an
assessment exemption.
(d) If the producer complies with the requirements of this section,
the Board will grant the exemption and issue a Certificate of Exemption
to the producer within 30 days of receipt of the producer's
application. The producer shall provide a copy of the Certificate of
Exemption to each handler to whom the producer sells potatoes. The
handler shall maintain records showing the exempt producer's name and
address and the exemption number assigned by the Board.
(e) An importer who meets the criteria in paragraph (a) of this
section may submit documentation to the Board and request an exemption
from assessment on 100 percent organic potatoes, potato products, and
seed potatoes--on a form provided by the Board--at any time initially
and annually thereafter on or before July 1 as long as the importer
continues to be eligible for the exemption. This documentation shall
include a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502) and a signed certification that the applicant meets all of the
requirements specified for an assessment exemption. If the importer
complies with the requirements of this section, the Board will grant
the exemption and issue a Certificate of Exemption to the importer
within 30 days of receipt of the importer's application. The Board will
also issue the importer a 9-digit alphanumeric Harmonized Tariff
Schedule (HTS) classification valid for 1 year from the date of issue.
This HTS classification should be entered by the importer, in the
appropriate location as determined by the U.S. Customs Service, on the
Customs entry documentation. Any line item entry of 100 percent organic
potatoes, potato products, and seed potatoes bearing this HTS
classification assigned by the Board will not be subject to
assessments.
PART 1209--MUSHROOM PROMOTION, RESEARCH, AND CONSUMER INFORMATION
11. The authority citation for Part 1209 is revised to read as
follows:
Authority: 7 U.S.C. 6101-6112 and 7 U.S.C. 7401.
12. In Sec. 1209.52, revise paragraph (a) to read as follows:
Sec. 1209.52 Exemption from assessment.
(a) The following persons shall be exempt from assessments under
this part:
(1) A person who produces or imports, on average, 500,000 pounds or
less of mushrooms annually; and
(2) A person who produces and markets solely 100 percent organic
products on a certified organic farm as defined in section 2103 of the
Organic Foods Production Act of 1990 (7 U.S.C. 6502) and does not
produce any conventional or nonorganic products. For purposes of this
section, produce means to grow or produce food, feed, livestock, or
fiber or to receive food, feed, livestock, or fiber and alter that
product by means of feeding, slaughtering, or processing.
13. In Sec. 1209.252, paragraph (a) is revised to read as follows:
Sec. 1209.252 Exemption procedures.
(a) Types of exemptions and requirements. (1) Any person who
produces or imports, on average, 500,000 pounds or less of mushrooms
annually and who desires to claim an exemption from assessments during
a fiscal year shall apply to the Council, on a form provided by the
Council, for a Certificate of Exemption. The producer or importer shall
certify that the person's production or importation of mushrooms shall
not exceed 500,000 pounds, on average, for the fiscal year for which
the exemption is claimed. An average shall be calculated by averaging a
person's estimated production or importation for the fiscal year for
which an exemption is claimed with the person's production or
importation in the preceding fiscal year.
(2) To apply for an exemption for organic mushrooms, an eligible
mushroom producer shall submit a request for exemption to the Council--
on a form provided by the Council--at any time initially and annually
thereafter on or before January 1 as long as the producer continues to
be eligible for the exemption. The request shall include the following:
The producer's name and address, a copy of the organic farm or organic
handling operation certificate provided by a USDA-accredited certifying
agent as defined in section 2103 of the Organic Foods Production Act of
1990 (7 U.S.C. 6502), and a signed certification that the applicant
meets all of the requirements specified for an assessment exemption. If
the applicant complies with the requirements of Sec. 1209.52(a)(2),
the Council will grant the exemption and issue a Certificate of
Exemption to the producer within 30 days of receipt of the producer's
request. An importer who meets the criteria in Sec. 1290.52(a)(2) may
submit documentation to the Council and request an exemption from
assessment on 100 percent organic mushrooms--on a form provided by the
Council--at any time initially and annually thereafter on or before
January 1 as long as the importer continues to be eligible for the
exemption. This
[[Page 22697]]
documentation shall include a copy of the organic farm or organic
handling operation certificate provided by a USDA-accredited certifying
agent as defined in section 2103 of the Organic Foods Production Act of
1990 (7 U.S.C. 6502) and a signed certification that the applicant
meets all of the requirements specified for an assessment exemption. If
the importer complies with the requirements of this section, the
Council will grant the exemption and issue a Certificate of Exemption
to the importer within 30 days of receipt of the importer's
application. The Council will also issue the importer a 9-digit
alphanumeric Harmonized Tariff Schedule (HTS) classification valid for
1 year from the date of issue. This HTS classification should be
entered by the importer, in the appropriate location as determined by
the U.S. Customs Service, on the Customs entry documentation. Any line
item entry of 100 percent organic mushrooms bearing this HTS
classification assigned by the Council will not be subject to
assessments.
* * * * *
PART 1210--WATERMELON RESEARCH AND PROMOTION
14. The authority citation for Part 1210 is revised to read as
follows:
Authority: 7 U.S.C. 4901-4916 and 7 U.S.C. 7401.
15. Section 1210.516 is added to read as follows:
Sec. 1210.516 Exemption for organic watermelons.
(a) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or nonorganic
products, shall be exempt from the payment of assessments with respect
to any watermelons that are produced on a certified organic farm as
defined in section 2103 of the Organic Foods Production Act of 1990 (7
U.S.C. 6502). For purposes of this section, produce means to grow or
produce food, feed, livestock, or fiber or to receive food, feed,
livestock, or fiber and alter that product by means of feeding,
slaughtering, or processing.
(b) To apply for this exemption, the producer or handler shall
submit the request to the Board--on a form provided by the Board--at
any time initially and annually thereafter on or before January 1 as
long as the producer or handler continues to be eligible for the
exemption.
(c) The request shall include the following: The applicant's name
and address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502), and a signed certification that the applicant meets all of the
requirements specified for an assessment exemption.
(d) If the producer or handler complies with the requirements of
this section, the Board will approve the exemption and issue a
Certificate of Exemption to the producer or handler within 30 days of
receipt of the application. The producer shall provide a copy of the
Certificate of Exemption to each handler to whom the producer sells
watermelons. The handler shall maintain records showing the exempt
producer's name and address and the exemption number assigned by the
Board.
(e) An importer who meets the criteria in paragraph (a) of this
section may submit documentation to the Board and request an exemption
from assessment on 100 percent organic watermelons--on a form provided
by the Board--at any time initially and annually thereafter on or
before January 1 as long as the importer continues to be eligible for
the exemption. This documentation shall include a copy of the organic
farm or organic handling operation certificate provided by a USDA-
accredited certifying agent as defined in section 2103 of the Organic
Foods Production Act of 1990 (7 U.S.C. 6502) and a signed certification
that the applicant meets all of the requirements specified for an
assessment exemption. If the importer complies with the requirements of
this section, the Board will grant the exemption and issue a
Certificate of Exemption to the importer within 30 days of receipt of
the importer's application. The Board will also issue the importer a 9-
digit alphanumeric Harmonized Tariff Schedule (HTS) classification
valid for 1 year from the date of issue. This HTS classification should
be entered by the importer, in the appropriate location as determined
by the U.S. Customs Service, on the Customs entry documentation. Any
line item entry of 100 percent organic watermelons bearing this HTS
classification assigned by the Board will not be subject to
assessments.
PART 1215--POPCORN PROMOTION, RESEARCH, AND CONSUMER INFORMATION
16. The authority citation for Part 1215 is revised to read as
follows:
Authority: 7 U.S.C. 7481-7491 and 7 U.S.C. 7401.
17. Section 1215.52 is revised to read as follows:
Sec. 1215.52 Exemption from assessment.
(a) Persons that process and distribute 4 million pounds or less of
popcorn annually, based on the previous year, shall be exempted from
assessment.
(b) Persons who produce and market solely 100 percent organic
products and who do not produce any conventional or nonorganic products
shall be exempt from the payment of assessments with respect to any
popcorn that is produced on a certified organic farm as defined in
section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502). For purposes of this section, produce means to grow or produce
food, feed, livestock, or fiber or to receive food, feed, livestock, or
fiber and alter that product by means of feeding, slaughtering, or
processing.
(c) To claim an exemption, persons shall apply to the Board, in the
form and manner prescribed in the rules and regulations.
18. Section 1215.300 is amended by:
(a) Revising paragraphs (b) and (c);
(b) Redesignating paragraph (d) as paragraph (e);
(c) Adding a new paragraph (d).
Revisions read as follows:
Sec. 1215.300 Exemption procedures.
* * * * *
(b) A person who produces and markets solely 100 percent organic
products and who does not produce any conventional or nonorganic
products as provided in Sec. 1215.52(b) of this part may apply for an
exemption by submitting a request for exemption to the Board on a form
provided by the Board at any time initially. The request shall include
the following: the applicant's name and address, a copy of the organic
farm or organic handling operation certificate provided by a USDA-
accredited certifying agent as defined in section 2103 of the Organic
Foods Production Act of 1990 (7 U.S.C. 6502), and a signed
certification that the applicant meets all of the requirements
specified for an assessment exemption.
(c) Upon receipt of an application, the Board shall determine
whether an exemption may be granted and issue a Certificate of
Exemption to the producer within 30 days of receipt of the applicant's
request.
(d) Any person who desires to renew the exemption from assessments
for a subsequent fiscal year shall reapply to the Board by January 1 of
that year.
* * * * *
[[Page 22698]]
PART 1216--PEANUT PROMOTION, RESEARCH, AND INFORMATION
19. The authority citation for Part 1216 is revised to read as
follows:
Authority: 7 U.S.C. 7411-7425 and 7 U.S.C. 7401.
20. Section 1216.56 is added to read as follows:
Sec. 1216.56 Exemption for organic peanuts.
(a) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or nonorganic
products, shall be exempt from the payment of assessments with respect
to any peanuts that are produced on a certified organic farm as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502).
(b) In order to apply for this exemption, an eligible peanut
producer shall submit a request for exemption to the Board--on a form
provided by the Board--at any time initially and annually thereafter on
or before August 1 as long as the producer continues to be eligible for
the exemption.
(c) The request shall include the following: the producer's name
and address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502), and a signed certification that the applicant meets all of the
requirements specified for an assessment exemption.
(d) If the producer complies with the requirements of this section,
the Board will approve the exemption and issue a Certificate of
Exemption to the producer within 30 days of receipt of the producer's
application.
(e) The producer shall provide a copy of the Certificate of
Exemption to each handler to whom the producer sells peanuts. The
handler shall maintain records showing the exempt producer's name and
address and the exemption number assigned by the Board.
PART 1218--BLUEBERRY PROMOTION, RESEARCH, AND INFORMATION
21. The authority citation for Part 1218 is revised to read as
follows:
Authority: 7 U.S.C. 7411-7425 and 7 U.S.C. 7401.
22. Section 1218.53 is amended by:
(a) Redesignating paragraphs (b) through (e) as paragraphs (f)
through (i).
(b) Revising paragraph (a).
(c) Adding new paragraphs (b) through (e) to read as follows:
Sec. 1218.53 Exemption procedures.
(a) Any producer who produces less than 2,000 pounds of blueberries
annually shall be exempt from the payment of assessments. Such producer
may apply to the USACBC, on a form provided by the USACBC, for a
certificate of exemption. Such producer shall certify that the
producer's production of blueberries shall be less than 2,000 pounds
for the fiscal year for which the exemption is claimed.
(b) Any importer who imports less than 2,000 pounds of fresh and
frozen blueberries annually shall be exempt from the payment of
assessments. Such importer may apply to the USACBC, on a form provided
by the USACBC, for a certificate of exemption. Such importer shall
certify that the importer's importation of fresh and frozen blueberries
shall not exceed 2,000 pounds for the fiscal year for which the
exemption is claimed.
(c) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or nonorganic
products, shall be exempt from the payment of assessments with respect
to any blueberries that are produced on a certified organic farm as
defined in section 2103 of the Organic Foods Production Act of 1990 (7
U.S.C. 6502). For purposes of this section, produce means to grow or
produce food, feed, livestock, or fiber or to receive food, feed,
livestock, or fiber and alter that product by means of feeding,
slaughtering, or processing.
(d) To apply for this exemption, a producer shall submit a request
for exemption to the USACBC--on a form provided by the USACBC--at any
time initially and annually thereafter on or before January 1 as long
as the producer continues to be eligible for the exemption. The request
shall include the following: the producer's name and address, with a
copy of the organic farm or organic handling operation certificate
provided by a USDA-accredited certifying agent as defined in section
2103 of the Organic Foods Production Act of 1990, and a signed
certification that the applicant meets all of the requirements
specified for an assessment exemption. If a producer complies with the
requirements in paragraph (c) of this section, the USACBC will grant an
assessment exemption and issue a certification of exemption to the
producer within 30 days of receipt of the producer's request.
(e) An importer who meets the criteria in paragraph (c) of this
section may submit documentation to the Board and request an exemption
from assessment on 100 percent organic fresh and frozen blueberries--on
a form provided by the USACBC--at any time initially and annually
thereafter on or before January 1 as long as the importer continues to
be eligible for the exemption. This documentation shall include a copy
of the organic farm or organic handling operation certificate provided
by a USDA-accredited certifying agent as defined in section 2103 of the
Organic Foods Production Act of 1990 (7 U.S.C. 6502) and a signed
certification that the applicant meets all of the requirements
specified for an assessment exemption. If the importer complies with
the requirements of this section, the USACBC will grant the exemption
and issue a Certificate of Exemption to the importer within 30 days of
receipt of the importer's application. The USACBC will also issue the
importer a 9-digit alphanumeric Harmonized Tariff Schedule (HTS)
classification valid for 1 year from the date of issue. This HTS
classification should be entered by the importer, in the appropriate
location as determined by the U.S. Customs Service, on the Customs
entry documentation. Any line item entry of 100 percent organic fresh
and frozen blueberries bearing this HTS classification assigned by the
USACBC will not be subject to assessments.
* * * * *
PART 1219--HASS AVOCADO PROMOTION, RESEARCH, AND INFORMATION
23. The authority citation for Part 1219 is revised to read as
follows:
Authority: 7 U.S.C. 7801-7813 and 7 U.S.C. 7401.
24. In part 1219, add a new Subpart C--Rules and Regulations to
read as follows:
Subpart C--Rules and Regulations
Sec. 1219.200 Terms defined.
Unless otherwise defined in this subpart, the definitions of terms
used in this subpart shall have the same meaning as the definitions of
such terms which appear in Subpart A--Hass Avocado Promotion, Research,
and Information Order of this part.
Sec. 1219.201 Definitions.
Organic Act means section 2103 of the Organic Foods Production Act
of 1990 (7 U.S.C. 6502).
Sec. 1219.202 Exemption for organic Hass avocados.
(a) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or nonorganic
[[Page 22699]]
products, shall be exempt from the payment of assessments with respect
to any Hass avocados that are produced on a certified organic farm as
defined in the Organic Act. For purposes of this section, produce means
to grow or produce food, feed, livestock, or fiber or to receive food,
feed, livestock, or fiber and alter that product by means of feeding,
slaughtering, or processing.
(b) To obtain this exemption, an eligible Hass avocado producer
shall submit a request for exemption to the Board--on a form provided
by the Board--at any time initially and annually thereafter on or
before November 1 as long as the producer continues to be eligible for
the exemption.
(c) The request shall include the following: the producer's name
and address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in the Organic Act, and a signed certification that the applicant meets
all of the requirements specified for an assessment exemption.
(d) If the producer complies with the requirements of paragraph (a)
of this section, the Board will grant an assessment exemption and shall
issue a Certificate of Exemption to the producer within 30 days of
receiving the producer's application. The producer shall provide a copy
of the Certificate of Exemption to each handler to whom the producer
sells Hass avocados. The handler shall maintain records showing the
exempt producer's name and address and the exemption number assigned by
the Board.
(e) An importer who meets the criteria in paragraph (b) of this
section may submit documentation to the Board and request an exemption
from assessment on 100 percent organic Hass avocados--on a form
provided by the Board--at any time initially and annually thereafter on
or before November 1 as long as the importer continues to be eligible
for the exemption. This documentation shall include a copy of the
organic farm or organic handling operation certificate provided by a
USDA-accredited certifying agent as defined in section 2103 of the
Organic Act and a signed certification that the applicant meets all of
the requirements specified for an assessment exemption. If the importer
complies with the requirements of this section, the Board will grant
the exemption and issue a Certificate of Exemption to the importer
within 30 days of receipt of the importer's application. The Board will
also issue the importer a 9-digit alphanumeric Harmonized Tariff
Schedule (HTS) classification valid for 1 year from the date of issue.
This HTS classification should be entered by the importer, in the
appropriate location as determined by the U.S. Customs Service, on the
Customs entry documentation. Any line item entry of 100 percent organic
Hass avocados bearing this HTS classification assigned by the Board
will not be subject to assessments.
PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION
25. The authority citation for Part 1220 is revised to read as
follows:
Authority: 7 U.S.C. 6301-6311 and 7 U.S.C. 7401.
26. Section 1220.302 is added to read as follows:
Sec. 1220.302 Exemption.
(a) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or non-organic
products, shall be exempt from the payment of assessment with respect
to any soybeans that are produced on a certified organic farm as
defined in section 2103 of the Organic Foods Production Act of 1990 (7
U.S.C. 6502).
(b) To apply for an exemption under this section, the producer
shall submit the request to the Board or other party as designated by
the Board--on a form provided by the Board--at any time initially and
annually thereafter on or before January 1 as long as the producer
continues to be eligible for the exemption.
(c) The request shall include the following: the producer's name
and address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502), and a signed certification that the applicant meets all of the
requirements specified for an assessment exemption.
(d) If the producer complies with the requirements of this section,
the Board or designee will grant the exemption and issue a Certificate
of Exemption to the producer within 30 days of receipt of the
producer's application.
(e) The producer shall provide a copy of the Certificate of
Exemption to each first purchaser. The first purchaser shall maintain
records showing the exempt producer's name and address and the
exemption number assigned by the Board.
PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION
27. The authority citation for Part 1230 is revised to read as
follows:
Authority: 7 U.S.C. 4801-4819 and 7 U.S.C. 7401.
28. Section 1230.102 is added to read as follows:
Sec. 1230.102 Exemption.
(a) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or non-organic
products, shall be exempt from the payment of assessment with respect
to any porcine animals or pork and pork products that are produced on a
certified organic farm as defined in section 2103 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6502). For purposes of this section,
produce means to grow or produce food, feed, livestock, or fiber or to
receive food, feed, livestock, or fiber and alter that product by means
of feeding, slaughtering, or processing.
(b) To apply for an exemption under this section, the producer
shall submit the request to the Board--on a form provided by the
Board--at any time initially and annually thereafter on or before
January 1 as long as the producer continues to be eligible for the
exemption.
(c) The request shall include the following: the producer's name
and address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502), and a signed certification that the applicant meets all of the
requirements specified for an assessment exemption.
(d) If the producer complies with the requirements of this section,
the Board will grant the exemption and issue a Certificate of Exemption
to the producer within 30 days of receipt of the producer's
application.
(e) The producer shall provide a copy of the Certificate of
Exemption to each person responsible for collecting and remitting the
assessment to the Board.
(f) The person responsible for collecting and remitting the
assessment to the Board shall maintain records showing the exempt
producer's name and address and the exemption number assigned by the
Board.
(g) An importer who meets the criteria in paragraph (a) above may
submit documentation to the Board and request an exemption from
assessment on 100 percent organic porcine animals or pork
[[Page 22700]]
and pork products--on a form provided by the Board--at any time
initially and annually thereafter on or before January 1 as long as the
importer continues to be eligible for the exemption. This documentation
shall include a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502) and a signed certification that the applicant meets all of the
requirements specified for an assessment exemption. If the importer
complies with the requirements of this section, the Board will grant
the exemption and issue a Certificate of Exemption to the importer
within 30 days of receipt of the importer's application. The Board will
also issue the importer a 9-digit alphanumeric Harmonized Tariff
Schedule (HTS) classification valid for 1 year from the date of issue.
This HTS classification should be entered by the importer, in the
appropriate location as determined by the U.S. Customs Service, on the
Customs entry documentation. Any line item entry of 100 percent organic
porcine animals or pork and pork products bearing this HTS
classification assigned by the Board will not be subject to
assessments.
PART 1240--HONEY RESEARCH, PROMOTION, AND CONSUMER INFORMATION
29. The authority citation for Part 1240 continues to read as
follows:
Authority: 7 U.S.C. 4601-4612 and 7 U.S.C. 7401.
30. Section 1240.42 is amended by:
(a) Redesignating paragraph (d) as paragraph (f).
(b) Revising paragraph (c).
(c) Adding new paragraphs (d) and (e).
Revisions read as follows:
Sec. 1240.42 Exemption from assessment.
* * * * *
(c) If, after a person has been exempt from paying assessments for
any year pursuant to paragraphs (a) and (b) of this section, and the
person no longer meets the requirements of paragraphs (a) and (b) of
this section for exemption, the person shall file a report with the
Board in the form and manner prescribed by the Board and pay an
assessment on or before March 15 of the subsequent year on all honey or
honey products produced or imported by such person during the year for
which the person claimed the exemption.
(d) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or nonorganic
products, shall be exempt from the payment of assessments with respect
to any honey that is produced on a certified organic farm as defined in
section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502). For purposes of this section, produce means to grow or produce
food, feed, livestock, or fiber or to receive food, feed, livestock, or
fiber and alter that product by means of feeding, slaughtering, or
processing. A person is a producer, first-handler, or producer-packer.
(e) An importer who meets the criteria in paragraph (d) of this
section may submit documentation to the Board and request an exemption
from assessment on 100 percent organic honey and honey products.
* * * * *
31. Amend Sec. 1240.50 by revising paragraph (d) to read as
follows:
Sec. 1240.50 Reports.
* * * * *
(d) For persons who have an exemption from assessments under Sec.
1240.42, such information as deemed necessary by the Board, and
approved by the Secretary, concerning the exemption including
disposition of exempted honey.
32. Revise Sec. 1240.114 to read as follows:
Sec. 1240.114 Exemption procedures.
(a) To obtain a Certificate of Exemption for organic honey, an
eligible person shall submit a request for exemption to the Board--on a
form provided by the Board--at any time initially and annually
thereafter on or before January 1 as long as the producer continues to
be eligible for the exemption. The request shall include the following:
the person's name and address, a copy of the organic farm or organic
handling operation certificate provided by a USDA-accredited certifying
agent as defined in section 2103 of the Organic Foods Production Act of
1990 (7 U.S.C. 6502), and a signed certification that the applicant
meets all of the requirements specified for an assessment exemption.
(b) If the person complies with the requirements of this section,
the Board will approve the exemption and issue a Certificate of
Exemption to the producer within 30 days of receiving the producer's
application.
(c) A person receiving an organic exemption shall provide a copy of
the Certificate of Exemption to each handler to whom the producer sells
honey. The handler shall maintain records showing the exempt producer's
name and address and the exemption number assigned by the Board.
(d) An importer who is eligible to be exempt from the payment of
assessments on imported organic honey and honey products may request an
exemption from assessment on 100 percent organic honey and honey
products--on a form provided by the Board--at any time initially and on
or before January 1 as long as the importer continues to be eligible
for the exemption. This documentation shall include a copy of the
organic farm or organic handling operation certificate provided by a
USDA-accredited certifying agent as defined in section 2103 of the
Organic Foods Production Act of 1990 (7 U.S.C. 6502) and a signed
certification that the applicant meets all of the requirements
specified for an assessment exemption. If the importer complies with
the requirements of this section, the Board will grant the exemption
and issue a Certificate of Exemption to the importer within 30 days of
receipt of the importer's application. The Board will also issue the
importer a 9-digit alphanumeric Harmonized Tariff Schedule (HTS)
classification valid for 1 year from the date of issue. This HTS
classification should be entered by the importer, in the appropriate
location as determined by the U.S. Customs Service, on the Customs
entry documentation. Any line item entry of 100 percent organic honey
and honey products bearing this HTS classification assigned by the
Board will not be subject to assessments.
33. In Sec. 1240.115, revise paragraph (b)(1) to read as follows:
Sec. 1240.115 Levy of assessments.
* * * * *
(b) * * *
(1) Any persons other than importers holding a valid exemption
certificate pursuant to Sec. 1240.42 during the 12-month period ending
on December 31;
* * * * *
34. Amend Sec. 1240.118 by revising the first sentence to read as
follows:
Sec. 1240.118 Reports of disposition of exempted honey.
The Board may require reports by first handlers, producer-packers,
importers, or any persons who receive an exemption from assessments
under Sec. 1240.42 on the handling and disposition of exempted honey.
* * *
35. Revise Sec. 1240.120 to read as follows:
Sec. 1240.120 Retention period for records.
Each first handler, producer-packer, importer, or any person who
receives an
[[Page 22701]]
exemption from assessments under Sec. 1240.42 and is required to make
reports pursuant to this subpart shall maintain and retain for at least
two years beyond the marketing year of their applicability:
(a) One copy of each report made to the Board;
(b) Records of all exempt producers, producer-packers, and
importers including certification of exemption as necessary to verify
the address of such exempt person; and
(c) Such records as are necessary to verify such reports.
36. Revise Sec. 1240.121 to read as follows:
Sec. 1240.121 Availability of records.
Each first handler, producer-packer, importer, or any person who
receives an exemption from assessments under Sec. 1240.42 and is
required to make reports pursuant to this subpart shall make available
for inspection by authorized employees of the Board or the Secretary
during regular business hours, such records as are appropriate and
necessary to verify reports required under this subpart.
37. Revise Sec. 1240.122 to read as follows:
Sec. 1240.122 Confidential books, records, and reports.
All information obtained from the books, records, and reports of
handlers, producer-packers, importers or any persons who receive an
exemption from assessments under Sec. 1240.42 and all information with
respect to refunds of assessments made to individual producers and
importers shall be kept confidential in the manner and to the extent
provided for in Sec. 1240.52 of the Order.
PART 1250--EGG RESEARCH AND PROMOTION
38. The authority citation for Part 1250 is revised to read as
follows:
Authority: 7 U.S.C. 2701-2718 and 7 U.S.C. 7401.
39. Revise Sec. 1250.530 to read as follows:
Sec. 1250.530 Certification of exempt producers.
(a) Number of laying hens. Egg producers not subject to the
provisions of the Act pursuant to Sec. 1250.348 shall file with all
handlers to whom they sell eggs a statement certifying their exemption
from the provisions of the Act in accordance with the criterion of
Sec. 1250.348. Certification shall be made on forms approved and
provided by the Egg Board to collecting handlers for use by exempt
producers. The certification form shall be filed with each handler on
or before January 1 of each year as long as the producer continues to
do business with the handler. A copy of the certificate of exemption
shall be forwarded to the Egg Board by the handler within 30 days of
receipt. The certification shall list the following: the name and
address of the producer, the basis for producer exemption according to
the requirements of Sec. 1250.348, and the signature of the producer.
(b) Organic Production. A person who produces and markets solely
100 percent organic products, and who does not produce any conventional
or nonorganic products, shall be exempt from the payment of assessments
with respect to any eggs produced on a certified organic farm as
defined in section 2103 of the Organic Foods Production Act of 1990 (7
U.S.C. 6502).
(1) To apply for an exemption under this section, a producer shall
submit a request for exemption to the Board on a form provided by the
Board at any time initially and annually thereafter on or before
January 1 as long as the producer continues to be eligible for the
exemption.
(2) The request shall include the following: the producer's name
and address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502), and a signed certification that the applicant meets all of the
requirements specified in paragraph (b) of this section for an
assessment exemption.
(3) If the producer complies with the requirements of this section,
the Board will grant an assessment exemption and issue a certificate of
exemption to the producer within 30 days of receipt of the producer's
request.
(4) The producer shall provide a copy of the certificate of
exemption to each handler to whom the producer sells eggs. The handler
shall maintain records showing the exempt producer's name and address
and the exemption number assigned by the Board.
(c) If the exempt producer no longer qualifies for an exemption as
specified in Sec. 1250.348 or Sec. 1250.530(b), that producer shall
notify, within 10 days, all handlers with whom the producer has filed a
certificate of exemption.
PART 1260--BEEF PROMOTION AND RESEARCH
40. The authority citation for Part 1260 is revised to read as
follows:
Authority: 7 U.S.C. 2901-2911 and 7 U.S.C. 7401.
41. Section 1260.302 is added to read as follows:
Sec. 1260.302 Exemption.
(a) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or non-organic
products, shall be exempt from the payment of the promotion and
research assessment with respect to any cattle or beef and beef
products that are produced on a certified organic farm as defined in
section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502). For purposes of this section, produce means to grow or produce
food, feed, livestock, or fiber or to receive food, feed, livestock, or
fiber and alter that product by means of feeding, slaughtering, or
processing.
(b) To apply for an exemption under this section, the producer
shall submit the request to the Board or other party as designated by
the Board--on a form provided by the Board--at any time initially and
annually thereafter on or before January 1 as long as the producer
continues to be eligible for the exemption.
(c) The request shall include the following: The producer's name
and address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502), and a signed certification that the applicant meets all of the
requirements specified for an assessment exemption.
(d) If the producer complies with the requirements of this section,
the Board or designee will grant the exemption and issue a Certificate
of Exemption to the producer within 30 days of receipt of the
producer's application.
(e) The producer shall provide a copy of the Certificate of
Exemption to each person responsible for collecting and remitting the
assessment.
(f) The person responsible for collecting and remitting the
assessment shall maintain records showing the exempt producer's name
and address and the exemption number assigned by the Board or designee.
(g) An importer who meets the criteria in paragraph (a) of this
section may submit documentation to the Board and request an exemption
from assessment on 100 percent organic cattle or beef and beef
products'on a form provided by the Board'at any time initially and
annually thereafter on or before January 1 as long as the importer
continues to be eligible for the exemption. This documentation
[[Page 22702]]
shall include a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502) and a signed certification that the applicant meets all of the
requirements specified for an assessment exemption. If the importer
complies with the requirements of this section, the Board will grant
the exemption and issue a Certificate of Exemption to the importer
within 30 days of receipt of the importer's application. The Board will
also issue the importer a 9-digit alphanumeric Harmonized Tariff
Schedule (HTS) classification valid for 1 year from the date of issue.
This HTS classification should be entered by the importer, in the
appropriate location as determined by the U.S. Customs Service, on the
Customs entry documentation. Any line item entry of 100 percent organic
cattle or beef and beef products bearing this HTS classification
assigned by the Board will not be subject to assessments.
PART 1280--LAMB RESEARCH AND PROMOTION
42. The authority citation for Part 1280 is revised to read as
follows:
Authority: 7 U.S.C. 7411-7425 and 7 U.S.C. 7401.
43. Section 1280.406 is added to read as follows:
Sec. 1280.406 Exemption.
(a) A person who produces and markets solely 100 percent organic
products, and who does not produce any conventional or non-organic
products, shall be exempt from the payment of assessment with respect
to any ovine animals or lamb and lamb products that are produced on a
certified organic farm as defined in section 2103 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6502). For purposes of this section,
produce means to grow or produce food, feed, livestock, or fiber or to
receive food, feed, livestock, or fiber and alter that product by means
of feeding, slaughtering, or processing. A person is a producer, seed
stock producer, feeder, exporter, or first handler.
(b) To apply for an exemption under this section, the person shall
submit the request to the Board--on a form provided by the Board--at
any time initially and annually thereafter on or before January 1 as
long as the person continues to be eligible for the exemption.
(c) The request shall include the following: the person's name and
address, a copy of the organic farm or organic handling operation
certificate provided by a USDA-accredited certifying agent as defined
in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502), and a signed certification that the applicant meets all of the
requirements specified for an assessment exemption.
(d) If the person complies with the requirements of this section,
the Board will grant the exemption and issue a Certificate of Exemption
to the producer within 30 days of receipt of the person's application.
(e) An exempt producer shall provide a copy of the Certificate of
Exemption to each person to whom the producer sells ovine animals or
lamb and lamb products. The Certificate of Exemption must accompany the
ovine animals through the production chain to the person responsible
for remitting the assessment to the Board.
(f) The person shall maintain records showing the exempt producer's
name and address and the exemption number assigned by the Board.
Dated: April 19, 2004.
A. J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-9259 Filed 4-23-04; 8:45 am]
BILLING CODE 3410-02-P