[Code of Federal Regulations]
[Title 7, Volume 3]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR205.101]

[Page 391-392]
 
                          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 B_Applicability
 
Sec. 205.101  Exemptions and exclusions from certification.

    (a) Exemptions. (1) A production or handling operation that sells 
agricultural products as ``organic'' but whose gross agricultural income 
from organic sales totals $5,000 or less annually is exempt from 
certification under subpart E of this part and from submitting an 
organic system plan for acceptance or approval under Sec. 205.201 but 
must comply with the applicable organic production and handling 
requirements of subpart C of this part and the labeling requirements of 
Sec. 205.310. The products from such operations shall not be used as 
ingredients identified as organic in processed products produced by 
another handling operation.
    (2) A handling operation that is a retail food establishment or 
portion of a retail food establishment that handles organically produced 
agricultural products but does not process them is exempt from the 
requirements in this part.
    (3) A handling operation or portion of a handling operation that 
only handles agricultural products that contain less than 70 percent 
organic ingredients by total weight of the finished product (excluding 
water and salt) is exempt from the requirements in this part, except:
    (i) The provisions for prevention of contact of organic products 
with prohibited substances set forth in Sec. 205.272 with respect to 
any organically produced ingredients used in an agricultural product;
    (ii) The labeling provisions of Sec. Sec. 205.305 and 205.310; and
    (iii) The recordkeeping provisions in paragraph (c) of this section.
    (4) A handling operation or portion of a handling operation that 
only identifies organic ingredients on the information panel is exempt 
from the requirements in this part, except:
    (i) The provisions for prevention of contact of organic products 
with prohibited substances set forth in Sec. 205.272 with respect to 
any organically produced ingredients used in an agricultural product;
    (ii) The labeling provisions of Sec. Sec. 205.305 and 205.310; and
    (iii) The recordkeeping provisions in paragraph (c) of this section.
    (b) Exclusions. (1) A handling operation or portion of a handling 
operation is excluded from the requirements of this part, except for the 
requirements for the prevention of commingling and contact with 
prohibited substances as set forth in Sec. 205.272 with respect to any 
organically produced products, if such operation or portion of the 
operation only sells organic agricultural products labeled as ``100 
percent organic,'' ``organic,'' or ``made with organic (specified 
ingredients or food group(s))'' that:

[[Page 392]]

    (i) Are packaged or otherwise enclosed in a container prior to being 
received or acquired by the operation; and
    (ii) Remain in the same package or container and are not otherwise 
processed while in the control of the handling operation.
    (2) A handling operation that is a retail food establishment or 
portion of a retail food establishment that processes, on the premises 
of the retail food establishment, raw and ready-to-eat food from 
agricultural products that were previously labeled as ``100 percent 
organic,'' ``organic,'' or ``made with organic (specified ingredients or 
food group(s))'' is excluded from the requirements in this part, except:
    (i) The requirements for the prevention of contact with prohibited 
substances as set forth in Sec. 205.272; and
    (ii) The labeling provisions of Sec. 205.310.
    (c) Records to be maintained by exempt operations. (1) Any handling 
operation exempt from certification pursuant to paragraph (a)(3) or 
(a)(4) of this section must maintain records sufficient to:
    (i) Prove that ingredients identified as organic were organically 
produced and handled; and
    (ii) Verify quantities produced from such ingredients.
    (2) Records must be maintained for no less than 3 years beyond their 
creation and the operations must allow representatives of the Secretary 
and the applicable State organic programs' governing State official 
access to these records for inspection and copying during normal 
business hours to determine compliance with the applicable regulations 
set forth in this part.