Establishment of Honey Packers and Importers Research, Promotion, Consumer Education and Industry Information Order and Suspension of Assessments Under the Honey Research, Promotion, and Consumer Information Order, 29390-29405 [08-1282]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 73, Number 99 (Wednesday, May 21, 2008)]
[Rules and Regulations]
[Pages 29390-29405]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-1282]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 1212 and 1240

[Docket No. AMS-FV-06-0176; FV-03-704-FR]
RIN 0581-AC37


Establishment of Honey Packers and Importers Research, Promotion, 
Consumer Education and Industry Information Order and Suspension of 
Assessments Under the Honey Research, Promotion, and Consumer 
Information Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule establishes the Honey Packers and Importers 
Research, Promotion, Consumer Education and Industry Information Order 
(Packers Order). The Packers Order is authorized under the Commodity 
Promotion, Research, and Information Act of 1996 (1996 Act). Under the 
Packers Order, first handlers and importers will pay an assessment of 
$0.01 per pound on honey and honey products. First handlers and 
importers of less than 250,000 pounds of honey and honey products 
annually will be exempt from the assessment. The assessments will be 
remitted to the Honey Packers and Importers Board (Board) to conduct a 
generic program of promotion, research, consumer education, and 
industry information to maintain and expand markets for honey and honey 
products. A referendum was conducted among honey first handlers and 
importers between April 2 and April 16, 2008. Seventy-eight percent of 
those covered under the Packers Order--representing ninety-two percent 
of the volume of those voting in the referendum--favored implementation 
of the program. This rule also suspends the requirement of the existing 
Honey Research, Promotion, and Consumer Information Order (Current 
Order) and regulations authorized under the Honey Research, Promotion, 
and Consumer Information Act (Honey Act) that honey producers and 
importers pay to the National Honey Board (Current Board) an assessment 
in the amount of $0.01 per pound on honey and honey

[[Page 29391]]

products. The provisions of the Current Order and regulations issued 
thereunder will be terminated at a later date.

DATES: Effective Date: May 22, 2008.

FOR FURTHER INFORMATION CONTACT: Kathie Notoro, Marketing Specialist, 
Research and Promotion Branch, Fruit and Vegetable Programs, AMS, USDA, 
Stop 0244, Room 0632-S, 1400 Independence Ave, SW., Washington, DC 
20250-0244; telephone (202) 720-9915 or (888) 720-9917 (toll free), 
Fax: (202) 205-2800 or e-mail kathie.notoro@usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under the Commodity 
Promotion, Research, and Information Act of 1996 (1996 Act) (7 U.S.C. 
7411-7425) and under the Honey Research, Promotion, and Consumer 
Information Act (Honey Act) (7 U.S.C. 4601-4613). The Current Order 
appears at 7 CFR Part 1240.
    A proposed rule with the Packers Order was published in the Federal 
Register on June 4, 2007 [72 FR 30924], with a 60-day comment period 
which ended on August 3, 2007. That rule also proposed termination of 
the Current Order and regulations in 7 CFR Part 1240. A second proposed 
rule and referendum order was published in the Federal Register on 
March 3, 2008 [73 FR 11474]. A final rule including the referendum 
procedures was published in the Federal Register the same day [73 FR 
11470].
    First handlers and importers who handled 250,000 pounds or more of 
honey or honey products, during the period from January 1, 2007, 
through December 31, 2007, were eligible to vote in the April 2-16, 
2008, referendum. Seventy-eight percent of those voting in the 
referendum, representing ninety-two percent of the volume who voted in 
the referendum, approved the program. The referendum was conducted by 
mail ballot.
    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.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    Section 524 of the 1996 Act provides that it shall not affect or 
preempt any other Federal or State law authorizing promotion or 
research relating to an agricultural commodity.
    Under section 519 of the 1996 Act and section 10 of the Honey Act, 
a person subject to an order may file a petition with the U.S. 
Department of Agriculture (Department) stating that the order, any 
provision of the order, or any obligation imposed in connection with 
the order is not established in accordance with the law, and requesting 
a modification of the order or an exemption from the order. Any such 
petition must be filed within two years after the effective date of an 
order, provision or obligation subject to challenge. The petitioner 
would have the opportunity for a hearing on the petition. Thereafter, 
the Department would issue a ruling on the petition. The 1996 Act 
provides that the district court of the United States for any district 
in which the petitioner resides or conducts business shall be the 
jurisdiction to review a final ruling on the petition, if the 
petitioner files a complaint for that purpose not later than 20 days 
after the date of entry of the Department's final ruling.
    In deciding if the Packers Order was consistent with and would 
effectuate the purpose of the 1996 Act, the Secretary considered the 
existence of other federal research and promotion programs issued under 
other laws. The Current Order appears at 7 CFR Part 1240 and is issued 
under the Honey Act.
    Similar to the Current Order, the goals of the Proposed Order are 
to: (1) Develop and finance an effective and coordinated research, 
promotion, industry information, and consumer education program for 
honey and honey products; (2) strengthen the position of the honey 
industry; and (3) develop, maintain, and expand existing markets for 
honey and honey products.
    Taking into account the duplicative nature of the Packers Order 
with the Current Order, the Department proposed terminating the Current 
Order and its regulations. This rule suspends the requirements of the 
Current Order and regulation that honey producers and importers pay 
assessments on honey and honey products. The provisions of the Current 
Order and regulations issued thereunder will be terminated at a later 
date. The Department will then appoint not more than five trustees from 
the Current Board to liquidate the affairs of the Current Board.

Background

    The 1996 Act, which became effective on April 4, 1996, authorizes 
the Department to establish a national research and promotion program 
covering domestic and imported honey and honey products. The National 
Honey Packers and Dealers Association (Association) submitted a 
proposal for a national promotion, research and information order for 
honey and honey products on March 17, 2006. The Department published 
the Association's proposal, with modifications, for public comment in 
the June 4, 2007, Federal Register [72 FR 30924]. Seventy-six comments 
were received by the August 3, 2007, deadline. These comments, and 
related changes to the Packers Order, were discussed in the March 3, 
2008, proposed rule published in the Federal Register [73 FR 11482] 
which included a Referendum Order. The representative period for 
establishing voter eligibility for the referendum was the period from 
January 1 to December 31, 2007. A referendum was conducted by mail 
ballot from April 2 to April 16, 2008. In the referendum, first 
handlers and importers of 250,000 pounds or more of honey and honey 
products voted to implement the program.
    The program will be administered by the Board under USDA 
supervision. The Board will have ten members; including three first 
handler representatives, two importer representatives, one importer-
handler representative, one national honey marketing cooperative 
representative, and three producer representatives and their 
alternates.
    Under the Packers Order, ``first handler'' would be defined to mean 
the first person who handles honey or honey products, and would include 
a producer who handles his or her own production. In addition, 
``handle'' would be defined to mean process, package, sell, transport, 
purchase or in any other way place honey or honey products, or cause 
them to be placed, in commerce. This term would include selling 
unprocessed honey that will be consumed without further processing or 
packaging, but would not include the transportation of unprocessed 
honey by the producer to a handler or transportation by a commercial 
carrier for the account of the first handler or producer.
    The Packers Order provides that each first handler pay an 
assessment to the Board at the rate of $0.01 per pound of domestically 
produced honey or honey products that the handler handles. The Packers 
Order establishes that each first handler responsible for remitting 
assessments shall pay the Board the amount due on a monthly basis no 
later than the fifteenth day of the month following the month in which 
the honey or honey products were marketed. The funds generated through 
the mandatory assessments on domestically handled and imported honey or 
honey products would be used to pay for promotion, research, and 
consumer and industry information as well as the

[[Page 29392]]

administration, maintenance, and functioning of the Board.
    The Packers Order defines ``importer'' to mean any person who 
imports honey or honey products from outside the United States for sale 
in the United States as a principal or as an agent, broker, or 
consignee for any person. An importer is also listed in the import 
records as the importer of record for such honey or honey products with 
U.S. Customs and Border Protection (Customs).
    Section 516(f) of the 1996 Act allows assessments on imports at a 
rate comparable to the rate for domestics. The Packers Order treats 
importers in the same manner as domestic handlers in terms of the 
assessment rate: Each importer would pay an assessment to the Board at 
the rate of $0.01 per pound of honey or honey products the importer 
imports into the United States. An importer must pay the assessment to 
the Board through Customs when the honey or honey products being 
assessed enters the United States. If Customs does not collect an 
assessment from an importer, the importer would be responsible for 
paying the assessment directly to the Board.
    The assessment levied on domestically handled and imported honey 
and honey products would be used to pay for promotion, research, and 
consumer education and industry information as well as the 
administration, maintenance, and functioning of the Board. Expenses 
incurred by the Department in implementing and administering the 
Packers Order, including referenda costs, also would be paid from 
assessments.
    Persons failing to remit total assessments due in a timely manner 
may also be subject to actions under Federal debt collection procedures 
as set forth in 7 CFR 3.1 through 3.36 for all research and promotion 
programs administered by the Department [60 FR 12533, March 7, 1995]. 
Persons also would have to pay interest and late payment charges on 
late assessments as prescribed in the Packers Order.
    Under the Packers Order, a first handler who handles less than 
250,000 pounds of honey or honey products per year or an importer who 
imports less than 250,000 pounds of honey or honey products per year, 
would be exempt from paying assessments.
    In addition, a first handler who operates under an approved NOP 
system plan, handles only products eligible to be labeled as 100 
percent organic under the NOP, and is not a split operation, is exempt 
from the paying assessments under the Packers Order. An importer who 
imports only products eligible to be labeled as 100 percent organic 
under the NOP, and is not a split operation, also is exempt from paying 
assessments.
    The Packers Order allows the Board to recommend to the Secretary an 
increase or decrease to the assessment, as it deems appropriate by at 
least a two-thirds vote of members present at a meeting of the Board. 
The Board may not recommend an increase in the assessment of more than 
$0.02 per pound of honey or honey products and assessments may not be 
increased by more than $0.0025 in any single fiscal year.
    Although the 1996 Act allows for credits of assessments for generic 
and branded activities, the Association who proposed the Packers Order 
did not elect to include it.
    As the Packers Order establishes that first handlers and importers 
will be responsible for paying assessments, the Packers Order states 
that these two groups will also be responsible for filing specific 
reports and maintaining records regarding the amount of honey and honey 
products brought to the market.
    First handlers will be required to file reports and maintain 
records on the total quantity of honey and honey products acquired 
during the reporting period, the quantity of honey processed for sale 
from the handler's own production, and the quantity of honey purchased 
from a handler or importer responsible for paying the assessment due. 
The Board will recommend to the Department specific reporting periods 
and dates when such reports are due to the Board.
    Unless provided by Customs, importers will be required to report 
the total quantity of honey and honey products imported during each 
reporting period, and keep a record of each lot of honey and honey 
products imported during such period, including the quantity, date, 
country of origin, and port of entry. Under the Packers Order, Customs 
would collect assessments on imported honey and honey products and 
remit the funds to the Board.
    Each first handler and importer, including those who would be 
exempt from paying assessments under the Packers Order, will be 
required to maintain any books and records necessary to carry out the 
provisions of the Packers Order for two years beyond the fiscal period 
to which they apply. This would include the books and records necessary 
to verify any required reports. These books and records would be made 
available to the Board's or Department's employees or agents during 
normal business hours for inspection if necessary.
    The Packers Order provides that all officers, employees, and agents 
of the Department and of the Board are required to keep confidential 
all information obtained from persons subject to the Order. This 
information will be disclosed only if the Department considers the 
information relevant, and the information is revealed in a judicial 
proceeding or administrative hearing brought at the direction or on the 
request of the Department or to which the Department or any officer of 
the Department is a party.
    However, the issuance of general statements based on reports or on 
information relating to a number of persons subject to the Packers 
Order would be permitted, if the statements do not identify the 
information furnished by any person. Finally, the publication, by 
direction of the Department, of the name of any person violating the 
Packers Order and a statement of the particular provisions of the 
Packers Order violated by the person will be allowed.
    It is estimated that revenue for the Packers Order will be around 
or slightly more than $3 million. Of this amount, about 64 percent 
would be generated by assessments on imported honey and honey products.
    The importer representatives must import at least 75 percent of the 
honey or honey products they market in the United States. The importer-
handler representative must also import at least 75 percent of the 
honey or honey products they market in the United States and must 
handle at least 250,000 pounds annually. In addition, the producer 
representatives must produce a minimum of 150,000 pounds of honey in 
the United States annually based on the best three year average of the 
most recent five calendar years.
    Each term of office on the Board would end on December 31, with new 
terms of office beginning on January 1, with the exception of the 
initial Board's term of office.
    First handlers, producers, and a national honey marketing 
cooperative representative would represent those entities in the United 
States. The United States is defined to include collectively the 50 
States, the District of Columbia, the Commonwealth of Puerto Rico and 
the territories and possessions of the United States. Board members 
from each of these groups would be nominated by national organizations 
representing each of them respectively. Honey is produced in almost all 
of the 50 States. The top ten producing States in 2006 included North 
Dakota, South

[[Page 29393]]

Dakota, California, Florida, Minnesota, Montana, Texas, Wisconsin, 
Idaho, and New York.
    Importers and the importer-handler on the Board will be nominated 
by national organizations representing importers. Such importers and 
the importer-handler will represent those individuals who import for 
sale honey or honey products into the United States as a principal or 
as an agent, broker, or consignee for any person who produces honey or 
honey products outside the United States. All qualified national 
organizations representing first handlers, producers, importers and 
honey-marketing cooperatives will have the opportunity to participate 
in a nomination caucus for the purposes of preparing a slate of 
candidates for the above positions submitted to the Department for 
consideration.
    Eligible organizations must submit nominations to the Department 
six months before a new term of office begins, except for the initial 
appointments to the Board. To become a qualified national organization 
representing first handlers, importers, or producers under the Packers 
Order, each such organization will be required to meet the following 
criteria: (1) The majority of its voting membership must consist of 
first handlers or producers of honey, and in the case of an importing 
organization, the membership must represent at least a majority of the 
volume of honey or honey products imported into the United States; (2) 
it must have a history of stability and permanency and have been in 
existence for more than 1 year; (3) its primary purpose must be to 
promote honey first handlers', importers' or producers' welfare; (4) it 
must derive a portion of its operating funds from first handlers, 
importers, or producers; and (5) it must demonstrate it is willing and 
able to further the 1996 Act's purposes. Further, any organization 
representing first handlers or producers must represent a substantial 
number of first handlers or producers who market or produce a 
substantial volume of honey or honey products in at least 20 States.
    To be eligible as a qualified national honey-marketing cooperative, 
the Department must certify that an entity qualifies under the 
definition in section 1212.42(d). Such an entity shall not be eligible 
for certification as a qualified national organization representing 
producer interests.
    If the Department determines that there are no qualified national 
organizations representing first handlers, importers, producers, and 
honey-marketing cooperatives interests, individuals who have paid their 
assessments to the Board in the most recent fiscal year could submit 
nominations for those positions specified.
    The Packers Order indicates that the Board may recommend to the 
Department that a member be removed from office if the member 
consistently refuses to perform his or her duties or engages in 
dishonest acts or willful misconduct. The Department may remove the 
member if the Department finds that the Board's recommendation 
demonstrates cause.
    The 1996 Act provides that to ensure fair and equitable 
representation, the composition of a Board shall reflect the geographic 
distribution of the production of the agriculture commodity in the 
United States and the quantity or value of the agriculture commodity 
imported into the United States.
    Under the Packers Order at least once every five years, but not 
more frequently than once in each three year period, the Board would 
review the geographical distribution in the United States of the 
production of honey covered by the Packers Order and quantity or value 
of honey and honey products imported into the United States. The 
review, based on a three-year average, would enable the Board to 
evaluate whether the Board membership is reflective of the composition 
of the honey industry.
    Board members could serve terms of three years and be able to serve 
a maximum of two consecutive terms under the Packers Order. When the 
Board is first established, one producer, one first handler, one 
importer, and the representative of a national honey cooperative would 
serve a two-year term. One producer, one first handler, and the 
importer-handler representative would serve a three-year term of 
office. One producer, one first handler, and one importer would serve a 
four-year term of office. This would allow the terms be staggered on 
the Board. No member or alternate may serve more than two consecutive 
terms, excluding any initial two-year term of office. Determination of 
which of the initial members and their alternates would serve two-year, 
three-year or four-year terms, would be designated by the Department.
    In the event that any member or alternate of the Board ceases to be 
a member of the category of members from which the member was appointed 
to the Board, such position shall become vacant.
    Under the Packers Order, a quorum is met if a majority of members 
are present and at least one first handler and one importer are 
present. Also, under the Packers Order, there is a \2/3\ vote 
requirement for recommendations to the Secretary of a change in 
assessment.
    The Order provides that 5% of the Board's anticipated revenue must 
be set aside for production research.
    The provisions regarding referendum procedures in the Packers Order 
provide for a referendum every seven years.
    The Department also is suspending assessments under the Current 
Order and regulation. The Current Order provisions and regulations will 
be terminated at a later date. A separate rule will be published in the 
Federal Register terminating the Current Order provisions and 
regulations. The Department will then appoint not more than five 
trustees from the Current Board to liquidate the affairs of the Current 
Board.

Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), the Agricultural Marketing Service (AMS) is required to 
examine the impact of the rule on small entities. The purpose of the 
RFA is to fit regulatory actions to the scale of businesses subject to 
such actions so that small businesses would not be disproportionately 
burdened.
    The 1996 Act authorizes generic promotion, research, and 
information programs for agricultural commodities. Development of such 
programs under this authority are in the national public interest and 
vital to the welfare of the agricultural economy of the United States 
and to maintain and expand existing markets and develop new markets and 
uses for agricultural commodities through industry-funded, government-
supervised, generic commodity promotion programs.
    The proponent Association submitted the Packers Order to: (1) 
Develop and finance an effective and coordinated program of research, 
promotion, industry information, and consumer education regarding honey 
and honey products; (2) strengthen the position of the honey industry; 
and (3) maintain, develop, and expand existing markets for honey and 
honey products.
    The goals of the Current Order are similar. Therefore, taking into 
account the duplicative nature of the Packers Order with the Current 
Order, the Department is suspending in this rule assessment collection 
under the Current Order and its regulations and will terminate the 
provisions of the Current Order and regulations issued thereunder at a 
later date.
    The Packers Order is authorized under the 1996 Act, while the 
Current Order is authorized under the Honey

[[Page 29394]]

Act. A major difference between the Current Order and the Packers Order 
is that the Packers Order provides for assessments to be paid by first 
handlers and importers that handled or imported 250,000 pounds or more 
of honey or honey products a year rather than producers and importers 
of less than 6,000 pounds per year under the Current Order.
    Administrative expenses under the Packers Order will be reduced 
because the number of entities assessed under the Packers Order is 
reduced. Approximately 2,700 entities are assessed under the Current 
Order, while about 75 entities will be assessed under the Packers 
Order. Administrative costs will be reduced with fewer entities paying 
assessments and filing reports, and the assessment collection process 
will be simplified.
    First handlers, importers, and producers will have the opportunity 
to serve on the 10 member Board. Each member will have an alternate. 
The Board will consist of three first handler representatives, three 
honey producers, two importer representatives, one importer-handler 
representative and one representative from a national honey marketing 
cooperative. The Secretary of Agriculture (Secretary) will appoint 
members to the Board from nominees submitted in accordance with the 
Order.
    Section 518 of the 1996 Act provides for referenda to ascertain 
approval of an order to be conducted either prior to its going into 
effect or within 3 years after assessments first begin under the order. 
An initial referendum was conducted prior to putting the Packers Order 
in effect. Seventy-eight percent of first handlers and importers 
representing ninety-two percent of the volume voting in the referendum 
approved the program. Every seven years, the Department shall conduct a 
referendum to determine whether first handlers and importers of honey 
or honey products favor the continuation, suspension, or termination of 
the Packers Order. In addition, the Department could conduct a 
referendum at any time; at the request of 10 percent or more of the 
first handlers and importers required to pay assessments; or at the 
request of the Board.
    There are approximately 45 first handlers and 30 importers of honey 
or honey products that will pay assessments under the Packers Order. 
The Current Honey Board consists of 12 members; seven producers, two 
handlers, two importers, and one marketing cooperative member. The 
Packers Board would consist of 10 members; three first handlers, two 
importers, one importer-handler, three producers, and one marketing 
cooperative member. Under the Packers Order, entities in the board 
member nomination process will include qualified national organizations 
representing first handlers, importers, producers, and cooperative 
interests.
    The Packers Order also provides for first handlers and importers to 
file reports to the Board. In addition, the Packers Order requires that 
qualified national organizations and nominated producers provide 
information for the nomination and appointment process to the Board. 
While the Packers Order will impose certain recordkeeping requirements 
on first handlers, importers, and any producers who seek nomination and 
appointment to the Board, information required under the Packers Order 
could be compiled from records currently maintained and will involve 
existing clerical or accounting skills. The forms require the minimum 
information necessary to effectively carry out the requirements of the 
Packers Order, and their use is necessary to fulfill the intent of the 
1996 Act. An estimated 118 respondents would provide information to the 
Board. They will be: 45 first handlers, 30 importers, 6 producers (for 
nominations purposes), 10 certified organizations (for nomination 
purposes), 25 handlers/importers exempt under the program, and 2 
organic handlers/importers (for exemption purposes). The estimated 
total cost of providing information to the Board by all respondents 
will be approximately $11,550. This total has been estimated by 
multiplying 350 total hours required for reporting and recordkeeping by 
$33, the average mean hourly earnings of various occupations involved 
in keeping this information. Data for computation of this hourly rate 
was obtained from the U.S. Department of Labor Statistics.
    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 $6.5 million or less. Using these criteria under the 
Packers Order, most producers, and first handlers will be considered 
small businesses, while most importers will not. Further, the members 
of cooperative organizations and other nominating organizations would 
reflect this same size composition.
    National Agricultural Statistic Service (NASS) data reports that 
U.S. production of honey, from producers with five or more colonies, 
totaled 155 million pounds in 2006. The top ten producing States in 
2006 included North Dakota, South Dakota, California, Florida, 
Minnesota, Montana, Texas, Wisconsin, Idaho, and New York. To avoid 
disclosing data for individual operations, NASS statistics do not 
include Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, 
Oklahoma, Rhode Island, and South Carolina. NASS reported the value of 
honey sold in 2006 was $161,314,000. Honey prices increased during 2006 
to 104.2 cents, up 14 percent from 91.8 cents in 2005.
    Based on the assessment reports in connection with the Current 
Order and recorded by Customs, four countries account for 72 percent of 
the honey and honey products imported into the United States. These 
countries and their share of the imports are: China (28%); Argentina 
(21%); Vietnam (13%); and Canada (10%). Other countries combined 
totaled 28 percent of honey and honey products imported to the United 
States.
    At the initial rate, revenue for the Packers Order will be 
approximately $3 million. In 2006, $3.6 million of assessment income 
was collected from the honey industry, of which 36 percent was from 
domestic production and 64 percent from imports. In 2006, 155 million 
pounds of honey or honey products were produced in the United States, 
279.4 million pounds were imported and 7.6 million pounds were 
exported. The value of production in 2006 was $161.3 million. The 
average price for honey in the U.S. in 2006 was 104.2 cents per pound. 
Therefore, the estimated assessment revenue as a percentage of total 
grower revenue (using 2006 as a model) could be estimated at 1.8 
percent.
    This final rule also suspends assessment collections under the 
Current Order representing $3.6 million on an annual basis.
    The honey industry and consumers would benefit from additional 
information that may be conveyed through the plans and projects 
regarding honey and honey products. Another benefit to first handlers 
and importers of honey or honey products would be that they would have 
more representation on the Board and have additional input into Board 
decisions regarding the plans and programs under the Packers Order.
    Associations and related industry media received news releases and 
other information regarding the implementation of the Packers Order, 
termination of the Current Order, and the referendum process. 
Furthermore, all information is available electronically.
    The Board could develop guidelines for compliance with the Packers 
Order.

[[Page 29395]]

The Board could recommend to the Secretary changes in programs, plans, 
projects, budgets, and any rules and regulations including the 
assessment rate, that might be necessary for the administration of the 
program. The administrative expenses of the Board are limited by the 
1996 Act to no more than 15 percent of assessment income. This does not 
include USDA costs for program oversight.
    With regard to alternatives, the 1996 Act itself provides for 
authority to tailor a program according to the individual needs of an 
industry. Provision is made for permissive terms in an order in Sec.  
516 of the 1996 Act, and other sections provide for alternatives.
    The Packers Order is designed to: (1) Develop and finance an 
effective and coordinated research, promotion, industry information, 
and consumer education program for honey and honey products; (2) 
strengthen the position of the honey industry; and (3) maintain, 
develop, and expand existing markets for honey and honey products. 
Additionally, the Packers Order will require first handlers of honey or 
honey products, instead of honey producers, to pay assessments to the 
Board that administers the program. While assessments will impose some 
additional costs on first handlers, the reporting requirements are 
minimal because handlers under the Current Order already report to the 
Current Board. Also, the costs are minimal and uniform on all first 
handlers. These costs should be offset by the benefits derived by the 
operation of the Packers Order. Under the Packers Order importers will 
continue to pay assessments and be responsible for reporting and 
recordkeeping.
    Section 516 authorizes an order to provide for exemption of de 
minimis quantities (the proponent Association proposed 250,000 pounds 
or less as a de minimis quantity) of an agricultural commodity; 
different payment and reporting schedules; coverage of research, 
promotion, and information activities to expand, improve, or make more 
efficient the marketing or use of an agricultural commodity in both 
domestic and foreign markets; provision for reserve funds; provision 
for credits for generic and branded activities; and assessment of 
imports.
    Also, under authority provided by 7 U.S.C. 7401, the Packers Order 
exempts first handlers who operate under an approved National Organic 
Program (NOP) (7 CFR part 205) system plan, handle only products that 
are eligible to be labeled as 100 percent organic under the NOP, and 
are not a split operation, from paying assessments. The Packers Order 
also states that importers who import only products that are eligible 
to be labeled as 100 percent organic under the NOP, and are not a split 
operation, shall be exempt from paying assessments.
    The Packers Order includes provisions for domestic market expansion 
and improvement, and reserve funds. There will be a decrease in the 
reporting and recordkeeping burden cost from $129,459 under the Current 
Order to $11,550 under the Packers Order. The reduced cost is due to a 
reduction in the total of individuals required to report.
    Assessments under the Current Order and regulations are suspended 
in this rule. The provisions of the Current Order and its regulations 
will be terminated at a later date. With the exception of the Current 
Order, the Department has not identified any relevant Federal rules 
that duplicate, overlap or conflict with the Packers Order.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), AMS has submitted to OMB a new information collection that 
has been assigned OMB control number 0581-NEW.
    Title: Advisory Committee and Research and Promotion Board 
Background Information.
    OMB Number for background form AD-755: (Approved under OMB No. 
0505-0001).
    Expiration Date of approval: March 31, 2009.
    Title: National Research, Promotion, and Consumer Information 
Programs.
    OMB Number: 0581-NEW.
    Expiration Date of Approval: 3 years from approval date.
    Type of Request: New information collection for research and 
promotion programs.
    Abstract: The information collection requirements in the request 
are essential to carry out the intent of the 1996 Act.
    Under the Packers Order, first handlers would be required to pay 
assessments to and file reports with the Board. While the Packers Order 
will impose certain recordkeeping requirements on first handlers, 
information required under the Packers Order could be compiled from 
records currently maintained by such handlers. Such records will be 
retained for at least two years beyond the marketing year of their 
applicability.
    Under the Packers Order importers are responsible to pay 
assessments. Unless provided by Customs, importers must report the 
total quantity of product imported during the reporting period and a 
record of each importation of such product during such period, giving 
quantity, date, and port of entry. Under the Packers Order, Customs 
would collect assessments on imported honey and honey products and 
remit the funds to the Board.
    An estimated 118 respondents would provide information to the 
Board. They would be: 45 first handlers, 30 importers, 6 producers (for 
nominations purposes), 10 certified organizations (for nomination 
purposes), 25 handlers/importers exempt under the program, and 2 
organic handlers/importers (for exemption purposes). The estimated 
total cost of providing information to the Board by all respondents 
would be $11,550. This total has been estimated by multiplying 350 
total hours required for reporting and recordkeeping by $33, the 
average mean hourly earnings of various occupations involved in keeping 
this information. Data for computation of this hourly rate was obtained 
from the U.S. Department of Labor Statistics.
    The Packers Order's provisions have been carefully reviewed, and 
every effort has been made to minimize any unnecessary recordkeeping 
costs or requirements, including efforts to utilize information already 
submitted under other honey programs administered by the Department.
    The forms will require the minimum information necessary to 
effectively carry out the requirements of the Packers Order, and their 
use is necessary to fulfill the intent of the 1996 Act. Such 
information can be supplied without data processing equipment or 
outside technical expertise. In addition, there are no additional 
training requirements for individuals filling out reports and remitting 
assessments to the Board. The forms would be simple, easy to 
understand, and place as small a burden as possible on the person 
required to file the information.
    Collecting information monthly during the production season will 
coincide with normal industry business practices. The timing and 
frequency of collecting information are intended to meet the needs of 
the industry while minimizing the amount of work necessary to fill out 
the required reports. The requirement to keep records for two years is 
consistent with normal industry practices. There is no practical method 
for collecting the required information without the use of these forms.
    Information collection requirements that are included in this rule 
include:
    (1) A Background Information Form AD-755 (Approved under OMB Form 
No. 0505-0001).

[[Page 29396]]

    Estimate of Burden: Public reporting for this collection of 
information is estimated to average 0.5 hours per response for each 
Board nominee.
    Respondents: First handlers, importers, producers and cooperative 
organizations.
    Estimated number of Respondents: 40 for initial nominations, 13 in 
subsequent years.
    Estimated number of Responses per Respondent: 1 every 3 years. 
(0.3)
    Estimated Total Annual Burden on Respondents: 20 hours for the 
initial nominations and 6 hours annually thereafter.
    (2) An Exemption Application for First Handlers and Importers Who 
Will Be Exempt From Assessments.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hours per response for each 
exempt first handler and importer.
    Respondents: Exempt First handlers and importers.
    Estimated Number of Respondents: 25.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 6.25 hours.
    (3) Monthly Report by Each First Handler of Honey.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.5 hours per each first handler 
reporting on honey handled.
    Respondents: First handlers.
    Estimated number of Respondents: 45.
    Estimated number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 270 hours.
    (4) A Requirement to Maintain Records Sufficient to Verify Reports 
Submitted Under the Order.
    Estimate of Burden: Public recordkeeping burden for keeping this 
information is estimated to average 0.5 hours per recordkeeper 
maintaining such records.
    Respondents: First handlers and importers.
    Estimated Number of Respondents: 118.
    Estimated Total Annual Burden of Respondents: 59 hours.
    (5) Application for Reimbursement of Assessment.
    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.25 hours per request for 
reimbursement.
    Respondents: First handler and importers.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 5 hours.
    (6) Application for Certification of Organizations.
    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.5 hours per application.
    Respondents: First handlers, importers, producers and marketing 
cooperatives.
    Estimated Number of Respondents: 10.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 5 hours.
    (7) Nomination Appointment Form.
    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.5 hours per application.
    Respondents: First handlers, importers, producers and marketing 
cooperatives.
    Estimated Number of Respondents: 10.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 5 hours.
    (8) Organic Exemption Form.
    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.5 hours per exemption form.
    Respondents: First handlers and importers.
    Estimated Number of Respondents: 2.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 1 hour.
    Comments were invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of functions of the 
Order and the Department's oversight of the Order, including whether 
the information will have practical utility; (b) the accuracy of the 
Department's estimate of the burden of the collection of information, 
including the validity of the methodology and assumption used; (c) ways 
to enhance the quality, utility, and clarity of the information to be 
collected; and (d) ways to minimize the burden of the collection of 
information on those who are to respond, including the use of 
appropriate automated, electronic, mechanical, or other technological 
collection techniques or other forms of information technology. No 
comments were received on the collection of information part of this 
rule.
    The Packers Order is summarized as follows:
    Section 1212.1 through Section 1212.32 of the Packers Order define 
certain terms, such as honey, first handler, and importer. Section 
1212.30 is corrected to include the term ``or part thereof.''
    Sections 1212.40 through 1212.48 of the Packers Order include 
provisions relating to the Honey Packers and Importers Board. These 
provisions cover establishment and membership; term of office; 
nominations and appointments; removal and vacancies; procedure, 
reimbursement and attendance; powers; duties; and reapportionment of 
the Board, which is the governing body authorized to administer the 
Order through the implementation of programs, plans, projects, budgets, 
contracts to promote and disseminate information about honey, subject 
to oversight by the Department. Section 1212.46(e) and 1212.47(e) are 
corrected in this rule to specify the authority of the Board to enter 
into contracts and agreements as provided for in the Act.
    Sections 1212.50 through 1212.55 cover budget review and approval; 
financial statements; authorize the collection assessments; specify how 
assessments will be used; specify who pays the assessment and how; 
exemptions; and authorize the imposition of a late-payment charge on 
past-due assessments. Section 1212.52(g)(1) is corrected to change the 
word ``establishes'' to ``recommends.''
    The proponent Association recommended an assessment rate of $0.01 
per pound for domestic honey and imported honey and honey products. The 
assessment rate will be reviewed and may be modified after the first 
referendum is conducted as stated in section 1212.81(a)(1).
    Persons failing to remit total assessments due in a timely manner 
may also be subject to actions under federal debt collections 
procedures as set forth in 7 CFR 3.1 through 3.36 for all research and 
promotion programs administered by USDA [60 FR 12533, March 7, 1995].
    Sections 1212.60 through 1212.62 address programs, plans, and 
projects; require the Board to periodically conduct an independent 
review of its overall program; and address patents, copyrights, 
trademarks, information, publications, and product formulations 
developed through the use of assessment funds.
    Sections 1212.70 through 1212.72 concern reporting and 
recordkeeping requirements for persons subject to the Order and protect 
the confidentiality of

[[Page 29397]]

information from such books, records, or reports.
    Sections 1212.80 through 1212.88 describe the rights of the 
Secretary; address referenda; authorize the Secretary to suspend or 
terminate the Packers Order when deemed appropriate; prescribe 
proceedings after suspension or termination; and address personal 
liability, separability, amendments, and the OMB control number.
    The Department conducted a referendum among first handlers and 
importers of honey and honey products from April 2 through April 16, 
2008, to determine whether the Packers Order would become effective. 
The representative period for establishing voter eligibility was from 
January 1 through December 31, 2007. First handlers and importers who 
handled or imported 250,000 pounds or more of honey and honey products 
during the representative period were eligible to vote. Seventy-eight 
percent of those voting, representing ninety-two percent of the volume 
voted in the referendum favored implementation of the program.
    After consideration of all relevant material presented, including 
the initial proposal, comments received, and the referendum results, it 
is found that the Packers Order, authorized under the Commodity 
Promotion, Research, and Information Act of 1996, is consistent with 
and effectuates the declared policy and purpose of the 1996 Act. 
Further, after taking into account the duplicative nature of the 
Proposed Order with the Current Order, it is determined that the 
requirements of the Current Order and regulations issued thereunder 
that honey producers and importers pay assessments on honey and honey 
products no longer tends to effectuate the declared policy of the Honey 
Research, Promotion, and Consumer Information Act and are hereby 
suspended.
    It is also found that good cause exists for not postponing the 
effective date of this action until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because: (1) In order to avoid 
duplication with the Packers Order, this action suspends the 
requirements of the Current Order and regulations that producers and 
importers remit assessments; and (2) implementation of the Packers 
Order is needed as soon as possible to begin assessments under that 
program and to initiate the process of establishing the Honey Packers 
and Importers Board.

List of Subjects in 7 CFR Parts 1212 and 1240

    Administrative practice and procedure, Advertising, Consumer 
Education, Honey and Honey products, Marketing agreements, Promotion, 
Reporting and recordkeeping requirements.

0
For the reasons set forth in the preamble, Title 7, Chapter XI of the 
Code of Federal Regulations is amended as follows:

PART 1240--HONEY RESEARCH, PROMOTION, AND CONSUMER INFORMATION

0
1. The authority citation for Part 1240 continues to read as follows:

    Authority: 7 U.S.C. 4601-4613; 7 U.S.C. 7401.


0
2. In Sec.  1240.41, a note is added immediately following the section 
to read as follows:


Sec.  1240.41  Assessments.

* * * * *

    Note To Sec.  1240.41: The requirement to pay producer and 
importer assessments is suspended indefinitely as of May 22, 2008.


0
3. In Sec.  1240.115, a note is added immediately following the section 
to read as follows:


Sec.  1240.115  Levy of assessments.

* * * * *

    Note To Sec.  1240.115: The requirement to pay producer and 
importer assessments is suspended indefinitely as of May 22, 2008.

PART 1212--HONEY PACKERS AND IMPORTERS RESEARCH, PROMOTION, 
CONSUMER EDUCATION AND INDUSTRY INFORMATION ORDER

0
4. The authority citation for Part 1212 is revised to read as follows:

    Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.


0
5. Add subpart A to part 1212 to read as follows:

Subpart A--Honey Packers and Importers Research, Promotion, 
Consumer Education, and Industry Information Order

Definitions

Sec.
1212.1 Act.
1212.2 Board.
1212.3 Conflict of interest.
1212.4 Department.
1212.5 Exporter.
1212.6 First handler.
1212.7 Fiscal period for marketing year.
1212.8 Handle.
1212.9 Honey.
1212.10 Honey products.
1212.11 Importer.
1212.12 Importer-Handler Representative.
1212.13 Information.
1212.14 Market or marketing.
1212.15 Order.
1212.16 Part and subpart.
1212.17 Person.
1212.18 Plans and programs.
1212.19 Producer.
1212.20 Promotion.
1212.21 Qualified national organization representing handler 
interests.
1212.22 Qualified national organization representing importer 
interests.
1212.23 Qualified national organization representing producer 
interests.
1212.24 Qualified national organization representing cooperative 
interests.
1212.25 Referendum.
1212.26 Research.
1212.27 Secretary.
1212.28 Suspend.
1212.29 State.
1212.30 Terminate.
1212.31 United States.
1212.32 United States Customs Service.

Honey Packers and Importers Board

1212.40 Establishment and membership.
1212.41 Term of office.
1212.42 Nominations and appointments.
1212.43 Removal and vacancies.
1212.44 Procedure.
1212.45 Reimbursement and attendance.
1212.46 Powers.
1212.47 Duties.
1212.48 Reapportionment of Board membership.

Expenses and Assessments

1212.50 Budget and expenses.
1212.51 Financial statements.
1212.52 Assessments.
1212.53 Exemption from assessment.
1212.54 Operating reserve.
1212.55 Prohibition on use of funds.

Promotion, Research, and Information

1212.60 Programs, plans, and projects.
1212.61 Independent evaluation.
1212.62 Patents, copyrights, inventions, product formulations, and 
publications.

Reports, Books, and Records

1212.70 Reports.
1212.71 Books and records.
1212.72 Confidential treatment.

Miscellaneous

1212.80 Right of the Secretary.
1212.81 Referenda.
1212.82 Suspension or termination.
1212.83 Proceedings after termination.
1212.84 Effect of termination or amendment.
1212.85 Personal liability.
1212.86 Separability.
1212.87 Amendments.
1212.88 OMB Control Numbers.

[[Page 29398]]

Subpart A--Honey Packers and Importers Research, Promotion, 
Consumer Education, and Industry Information Order

Definitions


Sec.  1212.1  Act.

    ``Act'' means the Commodity Promotion, Research, and Information 
Act of 1996, (7 U.S.C. 7411-7425), and any amendments to that Act.


Sec.  1212.2  Board.

    ``Board'' or ``Honey Packers and Importers Board'' means the 
administrative body established pursuant to Sec.  1212.40, or such 
other name as recommended by the Board and approved by the Department.


Sec.  1212.3  Conflict of interest.

    ``Conflict of interest'' means a situation in which a member or 
employee of the Board has a direct or indirect financial interest in a 
person who performs a service for, or enters into a contract with, the 
Board for anything of economic value.


Sec.  1212.4  Department.

    ``Department'' means the United States Department of Agriculture, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in the Secretary's stead.


Sec.  1212.5  Exporter.

    ``Exporter'' means any person who exports honey or honey products 
from the United States.


Sec.  1212.6  First handler.

    ``First handler'' means the first person who buys or takes 
possession of honey or honey products from a producer for marketing. If 
a producer markets honey or honey products directly to consumers, that 
producer shall be considered to be the first handler with respect to 
the honey produced by the producer.


Sec.  1212.7  Fiscal period.

    ``Fiscal period'' means a calendar year from January 1 through 
December 31, or such other period as recommended by the Board and 
approved by the Secretary.


Sec.  1212.8  Handle.

    ``Handle'' means to process, package, sell, transport, purchase or 
in any other way place honey or honey products, or causes them to be 
placed, in commerce. This term includes selling unprocessed honey that 
will be consumed without further processing or packaging. This term 
does not include the transportation of unprocessed honey by the 
producer to a handler or transportation by a commercial carrier of 
honey, whether processed or unprocessed for the account of the first 
handler or producer.


Sec.  1212.9  Honey.

    ``Honey'' means the nectar and saccharine exudations of plants that 
are gathered, modified, and stored in the comb by honeybees, including 
comb honey.


Sec.  1212.10  Honey products.

    ``Honey products'' mean products where honey is a principal 
ingredient. For purposes of this subpart, a product shall be considered 
to have honey as a principal ingredient if the product contains at 
least 50% honey by weight.


Sec.  1212.11  Importer.

    ``Importer'' means any person who imports for sale honey or honey 
products into the United States as a principal or as an agent, broker, 
or consignee of any person who produces honey or honey products outside 
the United States for sale in the United States, and who is listed in 
the import records as the importer of record for such honey or honey 
products.


Sec.  1212.12  Importer-Handler Representative.

    ``Importer-Handler Representative'' means any person who is an 
importer and first handler, who must import at least 75 percent of the 
honey they market in the United States and must handle at least 250,000 
pounds annually.


Sec.  1212.13  Information.

    ``Information'' means activities or programs designed to develop 
new and existing markets, new and existing marketing strategies and 
increased efficiency and activities to enhance the image of honey and 
honey products. These include:
    (a) Consumer education, which means any action taken to provide 
information to, and broaden the understanding of, the general public 
regarding the consumption, use, nutritional attributes, and care of 
honey and honey products; and
    (b) Industry information, which means information and programs that 
will lead to the development of new markets, new marketing strategies, 
or increased efficiency for the honey industry, and activities to 
enhance the image of the honey industry.


Sec.  1212.14  Market or marketing.

    (a) ``Marketing'' means the sale or other disposition of honey or 
honey products in any channel of commerce.
    (b) ``Market'' means to sell or otherwise dispose of honey or honey 
products in interstate, foreign, or intrastate commerce.


Sec.  1212.15  Order.

    ``Order'' means the Honey Packers and Importers Research, 
Promotion, Consumer Education and Industry Information Order.


Sec.  1212.16  Part and subpart.

    ``Part'' means the Honey Packers and Importers Research, Promotion, 
Consumer Education, and Industry Information Order (Order) and all 
rules, regulations, and supplemental orders issued pursuant to the Act 
and the Order. The Order shall be a ``subpart'' of such part.


Sec.  1212.17  Person.

    ``Person'' means any individual, group of individuals, partnership, 
corporation, association, cooperative, or any other legal entity.


Sec.  1212.18  Plans and programs.

    ``Plans and programs'' mean those research, promotion and 
information programs, plans, or projects established pursuant to this 
Order.


Sec.  1212.19  Producer.

    ``Producer'' means any person who is engaged in the production and 
sale of honey in any State and who owns, or shares the ownership and 
risk of loss of the production of honey or a person who is engaged in 
the business of producing, or causing to be produced, honey beyond 
personal use and having value at first point of sale.


Sec.  1212.20  Promotion.

    ``Promotion'' means any action, including paid advertising and 
public relations that presents a favorable image for honey or honey 
products to the public and food industry with the intent of improving 
the perception and competitive position of honey and stimulating sales 
of honey or honey products.


Sec.  1212.21  Qualified national organization representing first 
handler interests.

    ``Qualified national organization representing first handler 
interests'' means an organization that the Secretary certifies as being 
eligible to nominate first handler and alternate first handler members 
of the Board under Sec.  1212.42.


Sec.  1212.22  Qualified national organization representing importer 
interests.

    ``Qualified national organization representing importer interests'' 
means an organization that the Secretary certifies as being eligible to 
nominate

[[Page 29399]]

importer, importer-handler, and alternate importer and importer-handler 
members of the Board under Sec.  1212.42.


Sec.  1212.23  Qualified national organization representing producer 
interests.

    ``Qualified national organization representing producer interests'' 
means an organization that the Secretary certifies as being eligible to 
nominate producer and alternate producer members of the Board under 
Sec.  1212.42.


Sec.  1212.24  Qualified national organization representing cooperative 
interests.

    ``Qualified national organization representing cooperative 
interests'' means an organization that the Secretary certifies as being 
eligible to nominate cooperative and alternate cooperative members of 
the Board under Sec.  1212.42.


Sec.  1212.25  Referendum.

    ``Referendum'' means a referendum to be conducted by the Secretary 
pursuant to the Act whereby first handlers and importers shall be given 
the opportunity to vote to determine whether the implementation of or 
continuance of this part is favored by a majority of eligible persons 
voting in the referendum and a majority of volume voted in the 
referendum.


Sec.  1212.26  Research.

    ``Research'' means any type of test, study, or analysis designed to 
advance the image, desirability, use, marketability, production, 
product development, or quality of honey and honey products, including 
research relating to nutritional value, cost of production, new product 
development, testing the effectiveness of market development and 
promotion efforts. Such term shall also include studies on bees to 
advance the cost effectiveness, competitiveness, efficiency, pest and 
disease control, and other management aspects of beekeeping, honey 
production, and honey bees.


Sec.  1212.27  Secretary.

    ``Secretary'' means the Secretary of Agriculture of the United 
States, or any other officer or employee of the Department to whom 
authority the Secretary delegated the authority to act on his or her 
behalf.


Sec.  1212.28  Suspend.

    ``Suspend'' means to issue a rule under 5 U.S.C. 553 to temporarily 
prevent the operation of an order or part thereof during a particular 
period of time specified in the rule.


Sec.  1212.29  State.

    ``State'' means any of the fifty States of the United States of 
America, the District of Columbia, the Commonwealth of Puerto Rico and 
the territories and possessions of the United States.


Sec.  1212.30  Terminate.

    ``Terminate'' means to issue a rule under 5 U.S.C. 553 to cancel 
permanently the operation of an order or part thereof beginning on a 
date certain specified in the rule.


Sec.  1212.31  United States.

    ``United States'' means collectively the 50 States, the District of 
Columbia, the Commonwealth of Puerto Rico and the territories and 
possessions of the United States.


Sec.  1212.32  United States Customs Service.

    ``United States Customs Service'' or ``Customs'' means the United 
States Customs and Border Protection, an agency of the Department of 
Homeland Security.

Honey Packers and Importers Board


Sec.  1212.40  Establishment and membership.

    The Honey Packers and Importers Board is established to administer 
the terms and provisions of this part. The Board shall have ten 
members, composed of three first handler representatives, two importer 
representatives, one importer-handler representative, three producer 
representatives, and one marketing cooperative representative. The 
importer-handler representative must import at least 75 percent of the 
honey or honey products they market in the United States and handle at 
least 250,000 pounds annually. In addition, the producer 
representatives must produce a minimum of 150,000 pounds of honey in 
the United States annually based on the best three-year average of the 
most recent five calendar years, as certified by producers. The 
Secretary will appoint members to the Board from nominees submitted in 
accordance with Sec.  1212.42. The Secretary shall also appoint an 
alternate for each member.


Sec.  1212.41  Term of office.

    With the exception of the initial Board, each Board member and 
alternate will serve a three-year term or until the Secretary selects 
his or her successor. No member or alternate may serve more than two 
consecutive terms, excluding any initial two-year term of office. The 
terms of the initial Board members shall be staggered for two-, three-, 
and four-year terms. For the initial Board, one producer, one first 
handler, one importer, and the representative of a national honey 
cooperative will serve a two-year term of office. One producer, one 
first handler, and the importer-handler representative, will serve a 
three-year term of office. One producer, one first handler, and one 
importer will serve a four-year term of office. Determination of which 
of the initial members and their alternates shall serve two-year, 
three-year or four-year terms, shall be designated by the Secretary. 
Thereafter, each of these positions will carry a full three-year term. 
Members serving initial terms of two or four years will be eligible to 
serve a second term of three years. Each term of office will end on 
December 31, with new terms of office beginning on January 1. If this 
part becomes effective on a date such that the initial period is less 
than six months in duration, then the tolling of time for purposes of 
this subsection shall not begin until the beginning of the first 12-
month fiscal period.


Sec.  1212.42  Nominations and appointments.

    All nominations to the Board will be made as follows:
    (a) All qualified national organizations representing first handler 
interests will have the opportunity to participate in a nomination 
caucus and will, to the extent practical, submit as a group a single 
slate of nominations to the Secretary for the first handler positions 
and the alternate positions on the Board. If the Secretary determines 
that there are no qualified national organizations representing first 
handler interests, individual first handlers who have paid assessments 
to the Board in the most recent fiscal period may submit nominations. 
For the initial Board, persons that meet the definition of first 
handlers as defined in this subpart will certify their qualification 
and upon certification, if qualified, may submit nominations.
    (b) All qualified national organizations representing importer 
interests will have the opportunity to participate in a