[Code of Federal Regulations]
[Title 7, Volume 3]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR205.405]

[Page 404-405]
 
                          TITLE 7--AGRICULTURE
 
 CHAPTER I--AGRICULTURAL MARKETING SERVICE \1\ (STANDARDS, INSPECTIONS, 
       MARKETING PRACTICES), DEPARTMENT OF AGRICULTURE (CONTINUED)
 
PART 205--NATIONAL ORGANIC PROGRAM--Table of Contents
 
                        Subpart E--Certification
 
Sec. 205.405  Denial of certification.

    (a) When the certifying agent has reason to believe, based on a 
review of the information specified in Sec. 205.402 or Sec. 205.404, 
that an applicant for certification is not able to comply or is not in 
compliance with the requirements of this part, the certifying agent must 
provide a written notification of noncompliance to the applicant. When 
correction of a noncompliance is not possible, a notification of 
noncompliance and a notification of denial of certification may be 
combined in one notification. The notification of noncompliance shall 
provide:
    (1) A description of each noncompliance;
    (2) The facts upon which the notification of noncompliance is based; 
and
    (3) The date by which the applicant must rebut or correct each 
noncompliance and submit supporting documentation of each such 
correction when correction is possible.

[[Page 405]]

    (b) Upon receipt of such notification of noncompliance, the 
applicant may:
    (1) Correct noncompliances and submit a description of the 
corrective actions taken with supporting documentation to the certifying 
agent;
    (2) Correct noncompliances and submit a new application to another 
certifying agent: Provided, That, the applicant must include a complete 
application, the notification of noncompliance received from the first 
certifying agent, and a description of the corrective actions taken with 
supporting documentation; or
    (3) Submit written information to the issuing certifying agent to 
rebut the noncompliance described in the notification of noncompliance.
    (c) After issuance of a notification of noncompliance, the 
certifying agent must:
    (1) Evaluate the applicant's corrective actions taken and supporting 
documentation submitted or the written rebuttal, conduct an on-site 
inspection if necessary, and
    (i) When the corrective action or rebuttal is sufficient for the 
applicant to qualify for certification, issue the applicant an approval 
of certification pursuant to Sec. 205.404; or
    (ii) When the corrective action or rebuttal is not sufficient for 
the applicant to qualify for certification, issue the applicant a 
written notice of denial of certification.
    (2) Issue a written notice of denial of certification to an 
applicant who fails to respond to the notification of noncompliance.
    (3) Provide notice of approval or denial to the Administrator, 
pursuant to Sec. 205.501(a)(14).
    (d) A notice of denial of certification must state the reason(s) for 
denial and the applicant's right to:
    (1) Reapply for certification pursuant to Secs. 205.401 and 
205.405(e);
    (2) Request mediation pursuant to Sec. 205.663 or, if applicable, 
pursuant to a State organic program; or
    (3) File an appeal of the denial of certification pursuant to 
Sec. 205.681 or, if applicable, pursuant to a State organic program.
    (e) An applicant for certification who has received a written 
notification of noncompliance or a written notice of denial of 
certification may apply for certification again at any time with any 
certifying agent, in accordance with Secs. 205.401 and 205.405(e). When 
such applicant submits a new application to a certifying agent other 
than the agent who issued the notification of noncompliance or notice of 
denial of certification, the applicant for certification must include a 
copy of the notification of noncompliance or notice of denial of 
certification and a description of the actions taken, with supporting 
documentation, to correct the noncompliances noted in the notification 
of noncompliance.
    (f) A certifying agent who receives a new application for 
certification, which includes a notification of noncompliance or a 
notice of denial of certification, must treat the application as a new 
application and begin a new application process pursuant to 
Sec. 205.402.
    (g) Notwithstanding paragraph (a) of this section, if a certifying 
agent has reason to believe that an applicant for certification has 
willfully made a false statement or otherwise purposefully 
misrepresented the applicant's operation or its compliance with the 
certification requirements pursuant to this part, the certifying agent 
may deny certification pursuant to paragraph (c)(1)(ii) of this section 
without first issuing a notification of noncompliance.