[Federal Register Volume 74, Number 129 (Wednesday, July 8, 2009)]
[Rules and Regulations]
[Pages 32389-32391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-16029]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 74, No. 129 / Wednesday, July 8, 2009 / Rules
and Regulations
[[Page 32389]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 52
[Doc. No. AMS-FV-08-0075; FV-08-330]
RIN 0581-AC89
Country of Origin Labeling of Packed Honey
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule would establish a new regulation
addressing country of origin labeling for packed honey bearing any
official USDA mark or statement and would add a new cause for debarment
from inspection and certification service for honey. The rule is
necessary because section 10402 of the Food, Conservation and Energy
Act of 2008 (2008 Farm Bill) amended the Agricultural Marketing Act of
1946 to require country of origin labeling for honey if it contains
official USDA grade marks or statements. The regulations governing
inspection and certification would be amended to include a provision
for country of origin labeling requirements for packed honey and for
debarment of services if the country of origin labeling requirements
are not met for packages of honey containing official USDA grade marks
or statements.
DATES: This interim final rule is effective on October 6, 2009.
Comments must be submitted on or before September 8, 2009.
ADDRESSES: Interested persons are invited to submit comments via the
Internet at http://www.regulations.gov. Comments submitted by mail or
courier must be sent in duplicate to the Chere L. Shorter, Processed
Products Branch, Fruit and Vegetable Programs, Agricultural Marketing
Service, U.S. Department of Agriculture, STOP 0247, Washington, DC
20250-0247, fax (202) 690-1087, or e-mail [email protected].
Comments should make reference to the date and page number of this
issue of the Federal Register and will be made available for public
inspection in the above office during regular business hours and on the
Internet at http://www.regulations.gov or http://www.ams.usda.gov/processedinspection. All comments received will be posted without
change, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms. Chere L. Shorter at the above
address, call (202) 720-4693, or e-mail [email protected].
SUPPLEMENTARY INFORMATION: Section 10402 of the 2008 Farm Bill (Pub. L.
110-246) amended section 1622(h) of the Agricultural Marketing Act of
1946, (7 U.S.C. 1621-1627, 1635-1638d (Act)), to require that all
packed honey bearing any official USDA mark or statement also bear
``legibly and permanently in close proximity (such as on the same
side(s) or surface(s)) to the certificate, mark, or statement, and in
at least a comparable size, the [country or] countries of origin of the
lot or container of honey, preceded by the words `Product of' or other
words of similar meaning.'' Section 10402 also establishes that a
violation of the labeling requirements may be deemed by the Secretary
of Agriculture to be sufficient cause for debarment from the benefits
of the Act, only with respect to honey, and that the honey amendments
shall take effect one year after the date of enactment of the 2008 Farm
Bill, which is June 18, 2009.
The Act authorizes official inspection, grading, and certification
for processed fruits, vegetables, and processed products made from
them. This amendment to the Act requires the amendment of the
regulations in 7 CFR part 52, which provide for official inspection and
certification services with respect to processed fruit, vegetables, and
miscellaneous products and the fees charged for such services. Section
52.53 describes and illustrates the use of approved certification
marks. Section 52.54 lists the acts or practices that may cause
debarment by the Administrator of any person from any benefits of the
Act for a specified period of time. These include: (1) Fraud or
misrepresentation in filing an application; submission of samples; use
of an inspection report or certificate; use of the words ``Packed under
continuous inspection of the U.S. Department of Agriculture,'' any
legend signifying that the product has been officially inspected, any
statement of grade or similar words; use of a facsimile form; (2)
willful violations of the regulations; or (3) interfering with an
inspector, inspector's aid, or licensed sampler. Pursuant to the
amendment of the Act by the 2008 Farm Bill, section 52.54 will be
amended to add a new paragraph providing for debarment of services if
the country of origin labeling requirements are not met for honey.
Executive Order 12988
This interim final rule has been reviewed under Executive Order
12988, Civil Justice Reform. This rule is not intended to have a
retroactive effect and does not preempt any State or local laws,
regulations, or policies unless they present an irreconcilable conflict
with this rule. There are no administrative procedures which must be
exhausted prior to any judicial challenge to the provisions of this
rule.
Executive Order 12866
This 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 (OMB).
Regulatory Flexibility Act and Paperwork Reduction Act
As required by the Regulatory Flexibility Act, 5 U.S.C. 601-612,
the Agricultural Marketing Service (AMS) has prepared a regulatory
flexibility analysis. AMS, however, does not currently have all of the
data necessary for a comprehensive analysis of the effects of this
interim final rule on small entities. Therefore, AMS welcomes public
comment that would enable it to more fully consider impacts of the
rule, especially information on the use of official USDA grade marks on
honey and any costs associated with reconfiguring product labeling.
AMS estimates that there are between 139,600 and 212,000 beekeepers
in the United States. The vast majority of beekeepers (95 percent) are
hobbyists with fewer than 25 hives, or bee colonies, and about 4
percent are part-
[[Page 32390]]
time beekeepers who keep from 25 to 299 hives. Together, hobbyists and
part-time beekeepers account for about 50 percent of bee colonies and
about 40 percent of honey produced. Commercial beekeepers are those
with 300 or more bee colonies. There are approximately 1,600 commercial
beekeeping operations in the United States, which produce about 60
percent of the nation's honey.
AMS believes that there are approximately 2,000 producers of honey,
45 handlers/packers, and 659 importers of honey and honey products. 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 $7 million or less. Using these criteria, most
producers and handlers/packers would be considered small businesses,
while most importers would not.
National Agricultural Statistics Service (NASS) data report that
U.S. production of honey, from producers with five or more colonies,
totaled less than 155 million pounds in 2006, representing a decrease
of almost 16 percent from 2004. The number of U.S. bee colonies
producing honey in 2007 was 2.4 million (based on beekeepers who manage
five or more colonies).
In 2007, more than 148 million pounds of honey were produced in the
United States. The average annual yield per colony was 60.8 pounds of
honey. The average producer price per pound was $1.03. The 2007 honey
crop was valued at more than $153 million. In 2006, the honey price was
$1.04, which was up 14 percent from $0.92 in 2005.
The top six honey producing States in 2006 were North Dakota,
California, Florida, South Dakota, Montana, and Minnesota. NASS
reported the value of honey sold from these six states in 2006 was
$84,583,000 and the volume produced was 90,433,000 pounds. From 1980-
2002, U.S. honey production averaged around 200 million pounds per
year, with U.S. commercial beekeepers producing more than 220 million
pounds of honey as recently as 2000.
Based on the reports by U.S. Customs and Border Protection
(Customs), seventeen countries produced more than 93 percent of the
honey imported into the U.S. In 2005, five of these countries produced
almost 79 percent of the total honey imported into the United States.
These countries and their share of the imports are China (27 percent),
Argentina (21 percent), Vietnam (13 percent), Canada (10 percent), and
India (8 percent). Imports accounted for 69 percent of U.S. consumption
in 2006, an increase of 18 percent, up from 51 percent since 2002.
The United States is one of the world's largest markets for
industrial honey. This sector accounts for approximately 45 percent of
total domestic consumption. The primary users of industrial honey are
bakery, health food, and cereal manufacturers. Other users such as the
food service industry account for another 10 percent of domestic
consumption. Individual consumers who purchase small amounts of honey
for personal use also significantly contribute to overall consumption
in the United States. Consumption in the United States is about 275
million pounds.
USDA grades for honey are not mandatory, but beekeepers, handlers/
packers labeling honey as a particular grade are responsible for the
accuracy of the label. The U.S. Standards for Grades of Honey are
located on the AMS Web site at http://www.ams.usda.gov/processedinspection.
The Act authorizes the inspection, certification, and
identification of class, quality, quantity, and condition of
agricultural commodities. Under the Act, no person is required to use
the services.
The 2008 Farm Bill amended the Act to require that packaged honey
bearing a grade mark or statement, continuous inspection mark or
statement, sampling mark or statement, or any combination of marks or
statements of the Department of Agriculture, must also bear the one or
more names of the countries of origin of the lot or container of honey
legibly and permanently in close proximity to and at least in
comparable size to the mark or statement.
Under the existing regulations governing the inspection and grading
of processed fruits, vegetables, and miscellaneous products, section
52.53 provides for the use of approved identification marks and
paragraph (h) describes or lists prohibited uses of approved
identification. Section 52.53(h) provides that, except for officially
inspected or otherwise approved products, no label or advertising
material used upon, or in conjunction with, a processed product shall
bear a brand name, trademark, product name, company name, or any other
descriptive material as it relates or alludes to any official U.S.
Department of Agriculture certificate of quality or loading, grade
mark, grade statement (except honey and maple syrup which may bear such
grade mark or statement), continuous inspection mark, continuous
inspection statement, sampling mark or sampling statement or
combinations of one or more of the above. Therefore, honey and maple
syrup may bear official USDA grade marks without official inspection.
This rule would apply to domestic as well as foreign sources of
honey. Under this rule, any honey that has a grade mark or official
U.S. grade mark would have to include in its label the country of
origin in letters at least the same size and in close proximity to the
grade mark. For example, if foreign or domestic honey were labeled
Grade A or U.S. Grade A, then it would have to identify its country or
countries of origin. Conversely, if the honey is not officially grade
labeled, the country of origin labeling is not necessary whether the
honey is domestic or foreign.
AMS believes that under current industry labeling practices,
packages of honey that include the official U.S. grade marks, in most
cases, also include country of origin labeling. However, the Act
requires that all honey bearing any official USDA mark or statement
also bear legibly and permanently in close proximity (such as on the
same side(s) or surface(s)) to the certificate, mark, or statement, and
in at least a comparable size, the country or countries of origin of
the lot or container of honey, preceded by the words ``Product of'' or
other words of similar meaning. AMS is interested in any comments from
producers, handlers, importers, or other interested persons concerning
the cost, if any, associated with reconfiguring the labeling of honey
in accordance with this rule.
Because honey does not require official inspection in order to
carry official USDA grade marks and since there are no existing
programs that require the official inspection and certification of
honey, AMS believes that there will be little, if any, impact on the
honey industry or small entities. Further, AMS believes that product
labeling changes normally involve reconfiguring labeling without
substantial costs and without having to purchase new equipment.
With regard to alternatives to this rule, section 10402 of the 2008
Farm Bill amends the Act, which requires AMS to amend its regulations.
Enforcement will be handled by AMS if it receives complaints. All
complaints will be turned over to our Compliance and Analysis Program
(Compliance) who will investigate the alleged violation. Compliance
would then determine the validity of the complaint, and appropriate
action would be taken. Further, it is reasonable to allow time for
packaged honey bearing any official USDA mark or statement already in
the
[[Page 32391]]
chain of commerce to clear the system and allow the honey industry time
to reconfigure labels as appropriate. A 90-day period is provided for
that purpose.
The Agency has identified some Federal rules that may be viewed to
duplicate or overlap with this rule. Under pre-existing Federal laws
and regulations, country of origin labeling is required.
Such requirements are enforced by the U.S. Customs and Border
Protection (CBP) as authorized by the Tariff Act of 1930 and CBP
regulations (19 U.S.C. 1304(a) and 19 CFR Part 134). This law requires
that every imported item must be conspicuously and indelibly marked in
English to indicate to the ``ultimate purchaser'' its country of
origin.
Additionally, repackers are required by CBP to mark containers of
repackaged imports with the English name of the country of origin. In
the event that further reprocessing or material is added to the article
in another country and results in a ``substantial transformation'' of
the product, the other country becomes the country of origin within the
meaning of CBP's labeling requirements, 19 CFR 134.1(b) and 134.11.
AMS has reviewed this rule under the Paperwork Reduction Act, 44
U.S.C. 3501-3520, and has determined that there are no additional
information collection requirements imposed by this rule.
Pursuant to 5 U.S.C. 553, it is found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect because: (1) This rule has to be implemented because of an
amendment by the Farm Bill to the Act and has an effective date of
October 6, 2009; and (2) this rule provides a 60-day comment period and
any comments received will be considered prior to finalization of this
rule.
List of Subjects in 7 CFR Part 52
Food grades and standards, Food labeling, Honey, Miscellaneous
products, Debarment of services, Reporting and recordkeeping
requirements, Approved identification, Country of origin labeling, and
Prohibited uses of approved identification.
0
For the reasons set forth in the preamble, 7 CFR part 52 is amended as
follows:
PART 52--PROCESSED FRUITS AND VEGETABLES, PROCESSED PRODUCTS
THEREOF, AND CERTAIN OTHER PROCESSED FOOD PRODUCTS
0
1. The authority citation for part 52 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
0
2. In part 52, Sec. 52.54 is amended by adding paragraph (a)(4) to
read as follows:
Sec. 52.54 Debarment of service.
(a) * * *
(4) Country of origin labeling for packed honey. (i) The use of a
label or advertising material on, or in conjunction with, packaged
honey that bears any official certificate of quality, grade mark or
statement, continuous inspection mark or statement, sampling mark or
statement, or any combination of the certificates, marks, or statements
of the Department of Agriculture is hereby prohibited unless there
appears legibly and permanently in close proximity (such as on the same
side(s) or surface(s)) to the certificate, mark, or statement, and in
at least a comparable size, the one or more names of the one or more
countries of origin of the lot or container of honey, preceded by the
words `Product of' or other words of similar meaning.
(ii) A violation of the requirements of this section may be deemed
by the Secretary to be sufficient cause for debarment from the benefits
of the regulations governing inspection and certification only with
respect to honey.
Dated: June 30, 2009.
Robert C. Keeney,
Acting Associate Administrator, Agricultural Marketing Service.
[FR Doc. E9-16029 Filed 7-7-09; 8:45 am]
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