National Organic Program: Notice of Final Guidance for Accredited Certifying Agents and Certified Operations, 26177-26178 [2011-11115]
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26177
Rules and Regulations
Federal Register
Vol. 76, No. 88
Friday, May 6, 2011
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
I. Background
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 205
[Doc. AMS–NOP–10–0048; NOP–10–05]
National Organic Program: Notice of
Final Guidance for Accredited
Certifying Agents and Certified
Operations
Agricultural Marketing Service,
USDA.
ACTION: Notice of availability of final
guidance.
AGENCY:
The National Organic
Program (NOP) is announcing the
availability of four final guidance
documents intended for use by
accredited certifying agents and
certified operations. The four final
guidance documents are entitled as
follows: ‘‘Compost and Vermicompost in
Organic Crop Production (NOP 5021);
Wild Crop Harvesting (NOP 5022)’’;
‘‘Commingling and Contamination
Prevention in Organic Production and
Handling (NOP 5025)’’; and ‘‘The Use of
Chlorine Materials in Organic
Production and Handling (NOP 5026)’’.
These final guidance documents are
intended to inform the public of NOP’s
current thinking on these topics. These
final guidance documents are now
available from the NOP through ‘‘The
Program Handbook: Guidance and
Instructions for Accredited Certifying
Agents (ACAs) and Certified
Operations’’. The current edition of the
Program Handbook is available online at
https://www.ams.usda.gov/
NopProgramHandbook, or in print upon
request.
DATES: The final guidance documents
announced by this notice are effective
on May 9, 2011.
FOR FURTHER INFORMATION CONTACT:
Melissa Bailey, Ph.D., Director,
Standards Division, National Organic
jlentini on DSKJ8SOYB1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
16:12 May 05, 2011
Jkt 223001
Program, USDA–AMS–NOP, 1400
Independence Ave., SW., Room 2646–
So., Ag Stop 0268, Washington, DC
20250, E-mail:
Melissa.bailey@ams.usda.gov;
Telephone: (202) 720–3252; Fax: (202)
205–7808.
SUPPLEMENTARY INFORMATION:
On October 13, 2010, the National
Organic Program (NOP) published in the
Federal Register a notice of availability
with request for public comment on five
draft guidance documents (75 FR
62693). The topics covered in the draft
documents addressed recommendations
issued by the National Organic
Standards Board (NOSB) and the USDA
Office of Inspector General (OIG) in a
March 2010 audit report of the NOP.
The five draft guidance topics included
compost and vermicompost, wild crop
harvesting, outdoor access for poultry,
commingling and contamination
prevention, and the use of chlorine
materials. The five draft guidances can
be viewed on-line at https://
www.ams.usda.gov/NopDraftGuidance.
The 60-day comment period closed on
December 13, 2010.
The NOP received a total of 69
individual comments and 22,096 form
letter responses on the five draft
guidance documents. ‘‘NOP Notice 11–
7’’ provides a complete discussion of the
comments received and the rationale
behind any changes made to the
guidance documents as well as any
changes proposed, but not made to the
guidance documents. ‘‘NOP Notice 11–
7’’ can be found at https://
www.ams.usda.gov/
NOPCorrespondance.
Based upon the comments received,
the NOP revised and is publishing four
of the five guidance documents as final:
‘‘NOP 5021—Compost and
Vermicompost in Organic Crop
Production’’; ‘‘NOP 5022—Wild Crop
Harvesting’’; ‘‘NOP 5025—Commingling
and Contamination Prevention in
Organic Production and Handling’’; and
‘‘NOP 5026—The Use of Chlorine
Materials in Organic Production and
Handling’’. Based upon the comments
received, the NOP is not finalizing the
draft guidance, ‘‘NOP 5024—Outdoor
Access for Poultry’’. The NOP intends to
initiate a separate rulemaking on the
outdoor access requirements for poultry
in 2011.
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
The four final guidance documents
are now available from the NOP through
‘‘The Program Handbook: Guidance and
Instructions for Accredited Certifying
Agents (ACAs) and Certified
Operations’’. This Handbook provides
those who own, manage, or certify
organic operations with guidance and
instructions that can assist them in
complying with the NOP regulations.
The current edition of the Program
Handbook is available online at https://
www.ams.usda.gov/
NopProgramHandbook.
II. Significance of Guidance
These final guidance documents are
being issued in accordance with the
Office of Management and Budget
(OMB) Bulletin on Agency Good
Guidance Practices (GGPs) (January 25,
2007, 72 FR 3432–3440). The purpose of
GGPs is to ensure that program guidance
documents are developed with adequate
public participation, are readily
available to the public, and are not
applied as binding requirements. Final
guidance represents the NOP’s current
thinking on these topics. It does not
create or confer any rights for, or on, any
person and does not operate to bind the
NOP or the public. Guidance documents
are intended to provide a uniform
method for operations to comply that
can reduce the burden of developing
their own methods and simplify audits
and inspections. Alternative approaches
that can demonstrate compliance with
the Organic Foods Production Act
(OFPA), as amended (7 U.S.C. 6501–
6522), and its implementing regulations
are also acceptable. As with any
alternative compliance approach, the
NOP strongly encourages industry to
discuss alternative approaches with the
NOP before implementing them to avoid
unnecessary or wasteful expenditures of
resources and to ensure the proposed
alternative approach complies with the
Act and its implementing regulations.
III. Electronic Access
Persons with access to Internet may
obtain a copy of final guidance in the
‘‘Program Handbook’’ along with the
‘‘NOP Notice 11–7’’ at NOP’s Web site at
https://www.ams.usda.gov/nop.
E:\FR\FM\06MYR1.SGM
06MYR1
26178
Federal Register / Vol. 76, No. 88 / Friday, May 6, 2011 / Rules and Regulations
Dated: May 2, 2011.
Rayne Pegg,
Administrator, Agricultural Marketing
Service.
Federal Register. No public hearing was
requested or held with respect to the
proposed regulations. After
consideration of the comments received,
the proposed regulations are adopted, as
amended by this Treasury decision.
[FR Doc. 2011–11115 Filed 5–5–11; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9525]
RIN 1545–BG98
Modifications to Treatment of Aircraft
and Vessel Leasing Income
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations.
AGENCY:
This document contains final
regulations addressing the treatment of
certain income and assets related to the
leasing of aircraft or vessels in foreign
commerce. The regulations reflect
statutory changes made by the American
Jobs Creation Act of 2004. In general,
the regulations will affect United States
shareholders of controlled foreign
corporations that derive income from
the leasing of aircraft or vessels in
foreign commerce and U.S. persons that
transfer property subject to these leases
to a foreign corporation.
DATES: Effective Date: These regulations
are effective on May 6, 2011.
Applicability Dates: For dates of
applicability, see §§ 1.367(a)–2(e)(2),
1.367(a)–4(i), 1.367(a)–5(f)(3)(ii), 1.954–
2(i) and 1.956–2(e).
FOR FURTHER INFORMATION CONTACT:
Concerning the final regulations under
section 367, Ronald M. Gootzeit at (202)
622–3860; concerning the final
regulations under section 954 or 956,
Kristine A. Crabtree at (202) 622–3840;
(not toll-free numbers).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
jlentini on DSKJ8SOYB1PROD with RULES
In General
This document contains amendments
to 26 CFR Part 1 under sections 367, 954
and 956 of the Internal Revenue Code
(Code). Final and temporary regulations
(TD 9406, 73 FR 38113) (the temporary
regulations) and a cross-reference notice
of proposed rulemaking (REG–138355–
07, 73 FR 38162) were published in the
Federal Register on July 3, 2008 (the
proposed regulations). On July 29, 2008,
corrections to the final regulations (73
FR 43863) were published in the
VerDate Mar<15>2010
16:12 May 05, 2011
Jkt 223001
Explanation of Provisions
Section 415(a) of the American Jobs
Creation Act of 2004, Public Law 108–
357 (118 Stat. 1418) (Jobs Act), repealed
section 954(a)(4) and (f), the foreign base
company shipping income provisions of
subpart F. As a result of the repeal of
these provisions, rents derived from
leasing an aircraft or vessel in foreign
commerce are included in subpart F
income only if the rents are described in
another category of subpart F income,
such as foreign personal holding
company income (FPHCI) as defined in
section 954(c). Rents are generally
included in FPHCI under section
954(c)(1)(A), subject to certain
exceptions. One such exception is for
rents received from unrelated persons
and derived in the active conduct of a
trade or business. See section
954(c)(2)(A).
For this purpose, rents derived by a
controlled foreign corporation (CFC) are
considered derived in the active
conduct of a trade or business in certain
circumstances, including circumstances
whereby the rents are derived as a result
of the performance of marketing
functions by the lessor CFC with respect
to the leased property (the marketing
exception). § 1.954–2(c)(1)(iv).
Specifically, a lessor satisfies the
marketing exception if the lessor,
through its own officers or staff of
employees located in a foreign country,
maintains and operates an organization
in the foreign country that is regularly
engaged in the business of marketing, or
of marketing and servicing, the leased
property and that is substantial in
relation to the amount of rents derived
from leasing the property. For this
purpose, whether an organization in a
foreign country is substantial in relation
to the amount of rents is determined
based on all facts and circumstances;
however, such an organization will be
considered substantial if active leasing
expenses equal or exceed 25 percent of
the adjusted leasing profit (as defined in
§ 1.954–2(c)(2)(iv)). § 1.954–2T(c)(2)(ii).
The Jobs Act amended section
954(c)(2)(A) to expand the marketing
exception with respect to rents derived
from leasing an aircraft or vessel in
foreign commerce. In particular, section
954(c)(2)(A) now provides that ‘‘rents
derived from leasing an aircraft or vessel
in foreign commerce shall not fail to be
treated as derived in the active conduct
of a trade or business if, as determined
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
under regulations prescribed by the
Secretary, the active leasing expenses
are not less than 10 percent of the profit
on the lease.’’ In addition, the legislative
history to this provision states that the
Secretary of the Treasury will make
‘‘conforming changes to existing
regulations, including guidance that
aircraft or vessel leasing activity that
satisfies the requirements of section
954(c)(2)(A) shall also satisfy the
requirements for avoiding income
inclusion under section 956 and section
367(a).’’ H.R. Conf. Rep. No. 755, 108th
Cong., 2d Sess. 402 (2004).
On July 3, 2008, the Treasury
Department and the IRS published the
proposed regulations providing
guidance with respect to the treatment
of certain income and assets related to
the leasing of aircraft or vessels in
foreign commerce under sections 367,
954, and 956 of the Code in light of the
Jobs Act changes. These final
regulations adopt the proposed
regulations with the modifications
described herein.
Section 954 Regulations
Under current regulations, to satisfy
the marketing exception, the lessor
must, among other things, maintain an
organization that is regularly engaged in
the business of marketing, or of
marketing and servicing, the leased
property and that is ‘‘substantial in
relation to the rents derived.’’ § 1.954–
2(c)(1)(iv). The proposed regulations
added a new marketing safe harbor for
purposes of determining whether an
organization is substantial in relation to
rents derived from leasing aircraft or
vessels (including component parts,
such as engines, that are leased
separately from an aircraft or vessel) in
foreign commerce. This safe harbor
provides that an organization will be
considered substantial for purposes of
§ 1.954–2(c)(1)(iv) if active leasing
expenses equal or exceed 10 percent of
the adjusted leasing profit. For this
purpose, the rules in the current
regulations for computing active leasing
expense and adjusted leasing profit
continue to apply. The proposed
regulations also included a definition of
when an aircraft or vessel is leased in
foreign commerce, including defining
when property is used predominantly
outside the United States, that is
consistent with the legislative history to
the Jobs Act. See H.R. Rep. No. 108–548,
pt. 1, at 210 (2004); H.R. Conf. Rep. No.
108–755, at 402 (2004). Finally, the
proposed regulations also clarified that
rents derived from certain finance leases
and acquired leases are eligible for the
active rents exclusion.
E:\FR\FM\06MYR1.SGM
06MYR1
Agencies
[Federal Register Volume 76, Number 88 (Friday, May 6, 2011)]
[Rules and Regulations]
[Pages 26177-26178]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-11115]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 76, No. 88 / Friday, May 6, 2011 / Rules and
Regulations
[[Page 26177]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 205
[Doc. AMS-NOP-10-0048; NOP-10-05]
National Organic Program: Notice of Final Guidance for Accredited
Certifying Agents and Certified Operations
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Notice of availability of final guidance.
-----------------------------------------------------------------------
SUMMARY: The National Organic Program (NOP) is announcing the
availability of four final guidance documents intended for use by
accredited certifying agents and certified operations. The four final
guidance documents are entitled as follows: ``Compost and Vermicompost
in Organic Crop Production (NOP 5021); Wild Crop Harvesting (NOP
5022)''; ``Commingling and Contamination Prevention in Organic
Production and Handling (NOP 5025)''; and ``The Use of Chlorine
Materials in Organic Production and Handling (NOP 5026)''. These final
guidance documents are intended to inform the public of NOP's current
thinking on these topics. These final guidance documents are now
available from the NOP through ``The Program Handbook: Guidance and
Instructions for Accredited Certifying Agents (ACAs) and Certified
Operations''. The current edition of the Program Handbook is available
online at https://www.ams.usda.gov/NopProgramHandbook, or in print upon
request.
DATES: The final guidance documents announced by this notice are
effective on May 9, 2011.
FOR FURTHER INFORMATION CONTACT: Melissa Bailey, Ph.D., Director,
Standards Division, National Organic Program, USDA-AMS-NOP, 1400
Independence Ave., SW., Room 2646-So., Ag Stop 0268, Washington, DC
20250, E-mail: Melissa.bailey@ams.usda.gov; Telephone: (202) 720-3252;
Fax: (202) 205-7808.
SUPPLEMENTARY INFORMATION:
I. Background
On October 13, 2010, the National Organic Program (NOP) published
in the Federal Register a notice of availability with request for
public comment on five draft guidance documents (75 FR 62693). The
topics covered in the draft documents addressed recommendations issued
by the National Organic Standards Board (NOSB) and the USDA Office of
Inspector General (OIG) in a March 2010 audit report of the NOP. The
five draft guidance topics included compost and vermicompost, wild crop
harvesting, outdoor access for poultry, commingling and contamination
prevention, and the use of chlorine materials. The five draft guidances
can be viewed on-line at https://www.ams.usda.gov/NopDraftGuidance. The
60-day comment period closed on December 13, 2010.
The NOP received a total of 69 individual comments and 22,096 form
letter responses on the five draft guidance documents. ``NOP Notice 11-
7'' provides a complete discussion of the comments received and the
rationale behind any changes made to the guidance documents as well as
any changes proposed, but not made to the guidance documents. ``NOP
Notice 11-7'' can be found at https://www.ams.usda.gov/NOPCorrespondance.
Based upon the comments received, the NOP revised and is publishing
four of the five guidance documents as final: ``NOP 5021--Compost and
Vermicompost in Organic Crop Production''; ``NOP 5022--Wild Crop
Harvesting''; ``NOP 5025--Commingling and Contamination Prevention in
Organic Production and Handling''; and ``NOP 5026--The Use of Chlorine
Materials in Organic Production and Handling''. Based upon the comments
received, the NOP is not finalizing the draft guidance, ``NOP 5024--
Outdoor Access for Poultry''. The NOP intends to initiate a separate
rulemaking on the outdoor access requirements for poultry in 2011.
The four final guidance documents are now available from the NOP
through ``The Program Handbook: Guidance and Instructions for
Accredited Certifying Agents (ACAs) and Certified Operations''. This
Handbook provides those who own, manage, or certify organic operations
with guidance and instructions that can assist them in complying with
the NOP regulations. The current edition of the Program Handbook is
available online at https://www.ams.usda.gov/NopProgramHandbook.
II. Significance of Guidance
These final guidance documents are being issued in accordance with
the Office of Management and Budget (OMB) Bulletin on Agency Good
Guidance Practices (GGPs) (January 25, 2007, 72 FR 3432-3440). The
purpose of GGPs is to ensure that program guidance documents are
developed with adequate public participation, are readily available to
the public, and are not applied as binding requirements. Final guidance
represents the NOP's current thinking on these topics. It does not
create or confer any rights for, or on, any person and does not operate
to bind the NOP or the public. Guidance documents are intended to
provide a uniform method for operations to comply that can reduce the
burden of developing their own methods and simplify audits and
inspections. Alternative approaches that can demonstrate compliance
with the Organic Foods Production Act (OFPA), as amended (7 U.S.C.
6501-6522), and its implementing regulations are also acceptable. As
with any alternative compliance approach, the NOP strongly encourages
industry to discuss alternative approaches with the NOP before
implementing them to avoid unnecessary or wasteful expenditures of
resources and to ensure the proposed alternative approach complies with
the Act and its implementing regulations.
III. Electronic Access
Persons with access to Internet may obtain a copy of final guidance
in the ``Program Handbook'' along with the ``NOP Notice 11-7'' at NOP's
Web site at https://www.ams.usda.gov/nop.
[[Page 26178]]
Dated: May 2, 2011.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. 2011-11115 Filed 5-5-11; 8:45 am]
BILLING CODE 3410-02-P