[Code of Federal Regulations]
[Title 7, Volume 8]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR930.55]

[Page 278-279]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER IX--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
      Orders; Fruits, Vegetables, Nuts), DEPARTMENT OF AGRICULTURE
 
PART 930_TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK, 
 
                    Subpart_Order Regulating Handling
 
Sec.  930.55  Primary inventory reserves.

    (a) Whenever the Secretary has fixed the free market tonnage and 
restricted percentages for any fiscal period, as provided for in Sec.  
930.51(a), each handler in a regulated district shall place in his or 
her primary inventory reserve for such period, at such time, and in such 
manner, as the Board may prescribe, or otherwise divert, according to 
Sec.  930.59, a portion of the cherries acquired during such period.
    (b) The form of the cherries, frozen, canned in any form, dried, or 
concentrated juice, placed in the primary inventory reserve is at the 
option of the handler. Except as may be limited by Sec.  930.50(i) or as 
may be permitted pursuant to Sec. Sec.  930.59 and 930.62, such 
inventory reserve portion shall be equal to the sum of the products 
obtained by multiplying the weight or volume of the cherries in each lot 
of cherries acquired during the fiscal period by the then effective 
restricted percentage fixed by the Secretary: Provided, That in 
converting cherries in each lot to the form chosen by the handler, the 
inventory reserve obligations shall be adjusted in accordance with 
uniform rules adopted by the Board in terms of raw fruit equivalent.
    (c) Inventory reserve cherries shall meet such standards of grade, 
quality, or condition as the Board, with the approval of the Secretary, 
may establish. All such cherries shall be inspected by USDA. A 
certificate of such inspection shall be issued which shall show, among 
other things, the name and address of the handler, the number and type 
of containers in the lot, the grade of the product, the location where 
the lot is stored, identification marks (can codes or lot stamp), and a 
certification that the cherries meet the prescribed standards. Promptly 
after inspection and certification, each such handler shall submit, or 
cause to be submitted, to the Board, at the place designated by the 
Board, a copy of the certificate

[[Page 279]]

of inspection issued with respect to such cherries.
    (d) Handlers shall be compensated for inspection costs incurred on 
cherries placed in the primary inventory reserve. All reporting of 
cherries placed in, rotated in and out, or released from an inventory 
reserve shall be in accordance with rules and procedures established by 
the Board, with the approval of the Secretary. The Board could, with the 
approval of the Secretary, also limit the number of inspections of 
reserve cherries being rotated into inventory reserves for which the 
Board would be financially liable.
    (e) Except as provided in Sec.  930.54, handlers may not sell 
inventory reserve cherries prior to their official release by the Board. 
Handlers may rotate cherries in their inventory reserves with prior 
notification to the Board. All cherries rotated into the inventory 
reserve must meet the applicable inspection requirements.