[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: 7CFR930.59]

[Page 280-281]
 
                          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.  930.59  Handler diversion privilege.

    (a) In general. Handlers handling cherries harvested in a regulated 
district may fulfill any restricted percentage requirement in full or in 
part by acquiring diversion certificates or by voluntarily diverting 
cherries or cherry products in a program approved by the Board, rather 
than placing cherries in an inventory reserve. Upon voluntary diversion 
and compliance with the provisions of this section, the Board shall 
issue to the diverting handler a handler diversion certificate which 
shall satisfy any restricted percentage or diversion requirement to the 
extent of the Board or Department inspected weight of the cherries 
diverted.
    (b) Eligible diversion. Handler diversion certificates shall be 
issued to handlers only if the cherries are diverted in accordance with 
the following terms and conditions or such other terms and conditions 
that the Board, with the approval of the Secretary, may establish. Such 
diversion may take place in any form which the Board, with the approval 
of the Secretary, may designate. Tart cherry juice and juice concentrate 
may receive diversion credit but only if diverted in forms approved 
under the terms of this section. Such forms may include, but are not 
limited to:
    (1) Contribution to a Board-approved food bank or other approved 
charitable organization;
    (2) Use for new product and new market development;
    (3) Export to designated destinations; or
    (4) Other uses or disposition, including destruction of the cherries 
at the handler's facilities.
    (c) Notification. The handler electing to divert cherries through 
means authorized under this section shall first notify the Board of such 
election. Such notification shall describe in detail the manner in which 
the handler proposes to divert cherries including, if the diversion is 
to be by means of destruction of the cherries, a detailed description of 
the means of destruction and ultimate disposition of the cherries. It 
shall also contain an agreement that the proposed diversion is to be 
carried out under the supervision of the Board and that the cost of such 
supervision is to be paid by the handler. Uniform fees for such 
supervision may be established by the Board, pursuant to rules and 
regulations approved by the Secretary.
    (d) Diversion certificate. The Board shall conduct such supervision 
of the handler's diversion of cherries under paragraph (c) of this 
section as may be necessary to assure that the cherries are diverted as 
authorized. After the diversion has been completed, the Board shall 
issue to the diverting handler a handler diversion certificate 
indicating the weight of cherries which may be used to offset any 
restricted percentage requirement.
    (e) Transfer of certificates. Within such restrictions as may be 
prescribed in rules and regulations, including but not limited to 
procedures for transfer of diversion credit and limitations on the type 
of certification eligible for transfer, a handler who acquires diversion 
certificates representing diverted cherries during any crop year may 
transfer such certificates to another handler or handlers. The Board 
must be notified in writing whenever such transfers take place during a 
crop year.
    (f) The Board, with the approval of the Secretary, may establish 
rules and

[[Page 281]]

regulations necessary and incidental to the administration of this 
section.

[67 FR 51715, Aug. 8, 2002]