Exemption of Organic Products From Assessment Under a Commodity Promotion Law, 75005-75030 [2014-29280]

Download as PDF Vol. 79 Tuesday, No. 241 December 16, 2014 Part VI Department of Agriculture mstockstill on DSK4VPTVN1PROD with PROPOSALS5 Agicultural Marketing Service 7 CFR Parts 900, 1150, 1160, et al. Exemption of Organic Products from Assessment Under a Commodity Promotion Law; Proposed Rule VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\16DEP5.SGM 16DEP5 75006 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Parts 900, 1150, 1160, 1205, 1206, 1207, 1208, 1209, 1210, 1212, 1214, 1215, 1216, 1217, 1218, 1219, 1220, 1221, 1222, 1230, 1250, 1260, and 1280 [Document Number AMS–FV–14–0032] Exemption of Organic Products From Assessment Under a Commodity Promotion Law Agricultural Marketing Service, USDA. ACTION: Proposed rule. AGENCY: This proposal would modify the organic assessment exemption regulations under 23 Federal marketing orders and 22 research and promotion programs. The current regulations would be amended to allow persons that produce, handle, market, or import certified organic products to be exempt from paying assessments associated with commodity promotion activities, including paid advertising, conducted under a commodity promotion program administered by the Agricultural Marketing Service (AMS). The exemption would cover all ‘‘organic’’ and ‘‘100 percent organic’’ products certified under the National Organic Program regardless of whether the person requesting the exemption also produces, handles, markets, or imports conventional or nonorganic products. Currently, only persons that exclusively produce and market products certified as 100 percent organic are eligible for an exemption from assessments under commodity promotion programs. The authority for this proposal is in section 10004 of the Agricultural Act of 2014. DATES: Comments must be received by January 15, 2015. ADDRESSES: Interested persons are invited to submit written comments concerning this proposal. Comments must be sent to the Docket Clerk, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250–0237; Fax: (202) 720–8938; or Internet: https://www.regulations.gov. All comments should reference the document number and the date and page number of this issue of the Federal Register. Comments will be included in the record and made available for public inspection in the Office of the Docket Clerk during regular business hours, or can be viewed at: https:// www.regulations.gov. Please be advised mstockstill on DSK4VPTVN1PROD with PROPOSALS5 SUMMARY: VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 that the identity of the individuals or entities submitting the comments will be made public on the Internet at the address provided above. FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing Specialist, or Michelle Sharrow, Branch Chief, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250–0237; Telephone: (202) 720– 2491, Fax: (202) 720–8938; or email: Barry.Broadbent@ams.usda.gov, or Michelle.Sharrow@ams.usda.gov. SUPPLEMENTARY INFORMATION: The authority for this proposed rule is specified in section 10004 of the Agricultural Act of 2014 (2014 Farm Bill) (Pub. L. 113–79). On February 7, 2014, the 2014 Farm Bill amended Section 501 of the Federal Agriculture Improvement and Reform Act of 1996 (FAIR Act) (7 U.S.C. 7401), which established certain provisions for generic commodity promotion programs created under the various commodity promotion laws. Section 501 of the FAIR Act was previously amended in May 2002, by Section 10607 of the Farm Security and Rural Investment Act (2002 Farm Bill) (Pub. L. 107–171) to exempt persons that produced and marketed solely 100 percent organic products, and who did not otherwise produce or market any conventional or nonorganic products, from the payment of an assessment for commodity promotion activities under a commodity promotion law. Section 10004 of the 2014 Farm Bill subsequently expanded the organic assessment exemption to apply to any agricultural commodity that is certified as ‘‘organic’’ or ‘‘100 percent organic’’ as defined by the National Organic Program (NOP) (7 CFR part 205). The amendment further requires the Secretary of Agriculture to promulgate regulations concerning the eligibility and compliance procedures necessary to implement the exemption. Consistent with that provision of the 2014 Farm Bill, the proposed exemption covers all certified ‘‘organic’’ or ‘‘100 percent organic’’ products of a producer, handler, first handler, marketer, or importer regardless of whether the agricultural commodity subject to the exemption is produced, handled, marketed, or imported by a person that also produces, handles, markets, or imports conventional or nonorganic agricultural products, including conventional or nonorganic agricultural products of the same agricultural commodity as that for which the exemption is claimed. PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 Executive Order 12866, Executive Order 13563, and Executive Order 13175 The Department of Agriculture (USDA) is issuing this proposed rule with regard to marketing orders in conformance with Executive Orders 12866, 13563, and 13175. With regard to research and promotion programs, Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. This action has been designated as a ‘‘non-significant regulatory action’’ under section 3(f) of Executive Order 12866. Accordingly, the Office of Management and Budget has waived the review process. Additionally, with regard to research and promotion programs, this action has been reviewed in accordance with the requirements of Executive Order 13175, Consultation and Coordination with Indian Tribal Governments. The review reveals that this regulation would not have substantial and direct effects on Tribal governments and would not have significant Tribal implications. Executive Order 12988 Agricultural Marketing Agreement Act of 1937 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Beef Promotion and Research Act of 1985 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Section 11 of the Beef Promotion and Research Act of 1985 (7 U.S.C. 2910) provides that it shall not preempt or supersede any other program relating to beef promotion organized and operated under the laws of the United States or any State. Commodity Promotion, Research, and Information Act of 1996 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Section 524 of the Commodity Promotion, Research, E:\FR\FM\16DEP5.SGM 16DEP5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules and Information Act of 1996 (7 U.S.C. 7423) provides that it shall not affect or preempt any other Federal or State law authorizing promotion or research relating to an agricultural commodity. Cotton Research and Promotion Act of 1966 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. The proposed rule is not intended to have retroactive effect. Dairy Production Stabilization Act of 1983 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. The proposed rule is not intended to have retroactive effect. Section 1221 of the Dairy Production Stabilization Act of 1983 provides that nothing in this Act may be construed to preempt or supersede any other program relating to dairy product promotion organized and operated under the laws of the United States or any State. Egg Research and Consumer Information Act of 1974 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. The proposed rule is not intended to have retroactive effect. Fluid Milk Promotion Act of 1990 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. The proposed rule is not intended to have retroactive effect. Hass Avocado Promotion, Research and Information Act of 2000 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Section 1212(c) of the Hass Avocado Promotion, Research and Information Act of 2000 (7 U.S.C. 7811) provides that nothing in this Act may be construed to preempt or supersede any program relating to Hass avocado promotion, research, industry information, and consumer information organized and operated under the laws of the United States or of a State. mstockstill on DSK4VPTVN1PROD with PROPOSALS5 Mushroom Promotion, Research, and Consumer Information Act of 1990 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Section 1930 of the Mushroom Promotion, Research, and Consumer Information Act of 1990 (7 U.S.C. 6109) provides that nothing in this Act may be construed to preempt or supersede any other program relating to mushroom promotion, research, consumer information or industry VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 information organized and operated under the laws of the United States or any State. Popcorn Promotion, Research, and Consumer Information Act of 1996 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Section 580 of the Popcorn Promotion, Research, and Consumer Information Act (7 U.S.C. 7489) provides that nothing in this Act preempts or supersedes any other program relating to popcorn promotion organized and operated under the laws of the United States or any State. Potato Research and Promotion Act of 1971 This proposal has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Pork Promotion, Research and Consumer Information Act of 1985 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Section 1628 of the Pork Promotion, Research, and Consumer Information Act of 1985 (7 U.S.C. 4817) states that the statute is intended to occupy the field of promotion and consumer education involving pork and pork products and of obtaining funds thereof from pork producers. The regulation of such activity (other than a regulation or requirement relating to a matter of public health or the provision of State or local funds for such activity) that is in addition to or different from the Pork Act may not be imposed by a State. Soybean Promotion, Research, and Consumer Information Act This proposal has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Additionally, section 1974 of the Soybean Promotion, Research, and Consumer Information Act (7 U.S.C. 6309) provides, with certain exceptions, that nothing in the Soybean Act may be construed to preempt or supersede any other program relating to soybean promotion, research, consumer information, or industry information organized under the laws of the United States or any State. One exception in the Soybean Act concerns assessments collected by Qualified State Soybean Boards (QSSBs). The exception provides that, to ensure adequate funding of the operations of QSSBs under the Soybean Act, no State law or regulation may limit or have the effect PO 00000 Frm 00003 Fmt 4701 Sfmt 4702 75007 of limiting the full amount of assessments that a QSSB in that State may collect, and which is authorized to be credited under the Soybean Act. Another exception concerns certain referenda conducted during specified periods by a State relating to the continuation of a QSSB or State soybean assessment. Watermelon Research and Promotion Act This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. This proposal is issued under the 23 marketing orders and the 22 research and promotion programs established under the following acts: Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601–674) (AMAA); Beef Promotion and Research Act of 1985 (7 U.S.C. 2901–2911); Commodity Promotion, Research, and Information Act of 1996 (7 U.S.C. 7411–7425); Cotton Research and Promotion Act of 1966 (7 U.S.C. 2101–2118); Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501–4514); Egg Research and Consumer Information Act of 1974 (7 U.S.C. 2701–2718); Fluid Milk Promotion Act of 1990 (7 U.S.C. 6401– 6417); Hass Avocado Promotion, Research, and Information Act of 2000 (7 U.S.C. 7801–7813); Mushroom Promotion, Research, and Consumer Information Act of 1990 (7 U.S.C. 6101– 6112); Popcorn Promotion, Research, and Consumer Information Act of 1996 (7 U.S.C. 7481–7491); Pork Promotion, Research, and Consumer Information Act of 1985 (7 U.S.C. 4801–4819); Potato Research and Promotion Act of 1971 (7 U.S.C. 2611–2627); Soybean Promotion, Research, and Consumer Information Act (7 U.S.C. 6301–6311); and Watermelon Research and Promotion Act (7 U.S.C. 4901–4916). These acts are collectively referred to as ‘‘commodity promotion laws.’’ The preceding acts provide that administrative proceedings must be exhausted before parties may file suit in court. Under those acts, any person subject to an order may file a petition with the Secretary of Agriculture stating that the order, any provision of the order, or any obligation imposed in connection with the order is not in accordance with law and request a modification of the order or to be exempted therefrom. The petitioner is afforded the opportunity for a hearing on the petition. After the hearing, the Secretary will make a ruling on the petition. The acts provide that the district courts of the United States in any district in which the person is an E:\FR\FM\16DEP5.SGM 16DEP5 75008 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules inhabitant, or has his principal place of business, has the jurisdiction to review the Secretary’s rule, provided a complaint is filed within 20 days from the date of the entry of the ruling. There are no administrative proceedings that must be exhausted prior to any judicial challenge to the provision of the Beef Promotion and Research Act of 1985. mstockstill on DSK4VPTVN1PROD with PROPOSALS5 Proposed Rule USDA is proposing revisions to the general regulations affecting the 23 marketing order programs established under the AMAA. In addition, USDA is proposing similar amendments to the orders and/or rules and regulations of the 22 research and promotion programs. USDA is proposing the termination of existing provisions in § 1209.52 of the mushroom research and promotion order that are not consistent with proposed amendments to the order’s organic assessment exemption provisions contained in § 1209.252. The proposed termination of § 1209.52(a)(2) and (a)(3) is authorized by § 1209.71(a) of the order. While the existing organic exemption provisions would terminate in § 1209.52 of the order, a revised organic exemption provision is proposed in section § 1209.252(a)(2) of the regulations. Consistent with the provisions of the 2014 Farm Bill, the proposed modifications would amend current regulatory provisions that exempt organic producers, handlers, first handlers, marketers, and importers from the payment of promotion program assessments used to fund commodity promotion activities, including paid advertising, under a commodity promotion law. Marketing Order Programs The FAIR Act organic exemption amendment, as enacted by the 2014 Farm Bill, covers 23 marketing order programs established under the AMAA (Florida citrus—7 CFR part 905; Texas citrus—7 CFR part 906; Florida avocados—7 CFR part 915; Washington apricots—7 CFR part 922; Washington sweet cherries—7 CFR part 923; Southeastern California grapes—7 CFR part 925; Oregon/Washington pears—7 CFR part 927; Cranberries grown in the States of Massachusetts, et al.—7 CFR part 929; Tart cherries grown in the States of Michigan, et al.—7 CFR part 930; California olives—7 CFR part 932; Colorado potatoes—7 CFR part 948; Georgia Vidalia onions—7 CFR part 955; Washington/Oregon Walla Walla onions—7 CFR part 956; Idaho-Eastern Oregon onions—7 CFR part 958; Texas onions—7 CFR part 959; Florida tomatoes—7 CFR part 966; California VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 almonds—7 CFR part 981; OregonWashington hazelnuts—7 CFR part 982; California walnuts—7 CFR part 984; Far West spearmint oil—7 CFR part 985; California dates—7 CFR part 987; California raisins—7 CFR part 989; and California dried prunes—7 CFR part 993). Federal marketing orders are locally administered by committees made up of producers and/or handlers, and often members of the public. Marketing order regulations, initiated by industry and enforced by USDA, bind the entire industry in the geographical area regulated once they are approved by the Secretary of Agriculture. Marketing orders employ one or more of the following authorities: (1) Maintain the high quality of produce available to the market; (2) standardize packages and containers; (3) regulate the flow of product to market; (4) establish reserve pools for storable commodities; and (5) authorize production research, marketing research and development, and advertising. Each unique marketing order helps to promote orderly marketing for the specific commodity and region covered by the regulation. The 23 specific marketing order programs listed above allow for market promotion activities designed to assist, improve, or promote the marketing, distribution, or consumption of the commodity covered under each specific marketing order. Some of these programs also authorize market promotion in the form of paid advertising. Promotion activities, including paid advertising, are paid for by assessments levied on handlers regulated under the various marketing orders. Rules of practice and regulations governing all marketing orders established under the AMAA are contained in 7 CFR part 900 General Regulations. Section 900.700 specifies the criteria for identifying persons eligible to obtain an assessment exemption for marketing promotion activities, including paid advertising; procedures for persons to apply for an exemption; procedures for calculating the assessment exemption; and other procedural details pertaining to the 23 marketing order programs that currently engage in, or have the authority for, marketing promotion, including paid advertising. Currently under those provisions, only handlers that exclusively handle or market products that are eligible to be labeled ‘‘100 percent organic’’ are exempt from the portion of a marketing order assessment applicable to an order’s marketing promotion activities, including paid advertising. As such, PO 00000 Frm 00004 Fmt 4701 Sfmt 4702 organic handlers who handle or market any quantity of conventional or nonorganic products in addition to their organic products are not currently able to claim an assessment exemption on any of the products they handle. The 2014 Farm Bill expanded the organic exemption in the FAIR Act to allow all organic handlers to apply for an exemption from assessments on products certified as ‘‘organic’’ or ‘‘100 percent organic,’’ regardless of whether the handler also handles or markets conventional or nonorganic products (hereafter referred to as a ‘‘split operation’’). This proposal would modify the organic assessment exemption eligibility criteria contained in § 900.700. The requirements contained in that section would be revised to allow organic operations that are split operations to apply for and receive an assessment exemption on their organic products, whereas such types of operations are explicitly precluded from the organic assessment exemption under the current language. More specifically, the eligibility provisions contained in § 900.700(b) would be modified to include certified organic handlers that maintain split operations. The section would also be amended to provide that exempt handlers must continue to pay assessments associated with any agricultural products that do not qualify for an exemption under that section. Handlers who wish to claim the assessment exemption on their organic products would continue to be required to submit an application to the marketing order board or committee, and subsequently be approved by that body, to qualify for the organic exemption. However, as a result of the revised eligibility requirements as proposed herein, some of the information collection previously necessary for the board or committee to administer the organic assessment exemption would no longer be required moving forward. As such, § 900.700(c) would be modified to require less documentation from the handler with regards to the type and scope of their operation when they apply for an organic assessment exemption. Research and Promotion Programs The FAIR Act organic exemption amendment contained in the 2014 Farm Bill also covers 22 research and promotion programs established under either freestanding legislation (beef, cotton, dairy, eggs, fluid milk, Hass avocados, mushrooms, popcorn, pork, potatoes, soybeans, and watermelons) or the Commodity Promotion, Research, and Information Act of 1996 E:\FR\FM\16DEP5.SGM 16DEP5 mstockstill on DSK4VPTVN1PROD with PROPOSALS5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules (blueberries, Christmas trees, honey, lamb, mangoes, paper and paper-based products, peanuts, processed raspberries, softwood lumber, and sorghum). Wholly funded and operated by industry, the research and promotion programs are charged with creating, maintaining, and expanding markets for the agricultural commodities they represent. While these programs are overseen by AMS, including review of all financial budgets, marketing plans, and research projects, they are governed by boards and councils made up of industry participants. Producers, handlers, processors, importers, and/or others in the marketing chain pay assessments to the representative boards and councils to fund each program’s activities. Industries voluntarily request the formation of these programs, which allows them to establish, finance, and execute coordinated programs of research, producer and consumer education, and generic commodity promotion to improve, maintain, and develop markets for their respective commodities. Under this proposal, the eligibility criteria for obtaining an organic assessment exemption, as contained in each of the research and promotion orders, plans, and/or regulations, would be revised. The requirements for such an exemption would be modified to allow split organic operations to apply for and receive an assessment exemption on their organic products, whereas such types of operations are explicitly precluded from the assessment exemption under the current provisions in each program. In addition, language would be added to provide that exempt producers, handlers, marketers, or importers must continue to pay any assessments associated with any agricultural products that do not qualify for an exemption. Persons who wish to claim the assessment exemption on their organic products would continue to be required to submit an application to the board or council, and subsequently be approved, to qualify for the organic exemption. However, as a result of the revised eligibility requirements proposed herein, some of the information collection that is currently necessary for the board or council to administer the organic assessment exemption would no longer be required moving forward. As such, the section of each order, plan, or regulation that specifies the information collection requirements for the organic assessment exemption would be modified to require less documentation from the applicant with regards to the type and scope of their operation. VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 Who is eligible for exemption under a marketing order? This proposed rule would modify the eligibility requirements for organic assessment exemptions that are currently in place for marketing order programs. Under this proposed action, persons who are subject to an assessment under a designated marketing order, who maintain a valid organic certificate, and who handle any assessable agricultural commodities that are certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) would be eligible for the organic assessment exemption under amended requirements in part 900. All of the 23 marketing orders impacted by this proposed rule assess only handlers (i.e., persons that handle the regulated commodity) to fund the operations of the respective programs. Under the current organic assessment exemption regulation, which was promulgated as a result of the provisions in the 2002 Farm Bill that amended the FAIR Act, to qualify for an exemption from a commodity promotion assessment, a person— meaning an individual, group of individuals, corporation, association, cooperative, or other business entity— must ‘‘produce and market’’ solely 100 percent organic products, and must not also produce or market any conventional or nonorganic products. For the purpose of that regulation, ‘‘produce’’ was defined as to grow or produce food, feed, livestock, or fiber or to receive food, feed, livestock, or fiber and alter that product by means of feeding, slaughtering, or processing. USDA determined that handlers, processors and producers acting as handlers, and importers were also eligible for exemption if any of their activities met the definition of ‘‘produce’’ as outlined above. Additionally, the regulation only provided for granting organic assessment exemptions to persons that handle domestic commodities regulated under marketing orders and not importers, as importers regulated under section 608e of the AMAA (7 U.S.C. 608e–1)(section 8e) do not pay assessments. Therefore, importers are not eligible for an organic assessment exemption under part 900. The 2002 Farm Bill amended the FAIR Act to make organic assessment exemptions available to any person that ‘‘produces and markets’’ organic products, should they also conform to certain other criteria. This proposed rule would incorporate the broadened eligibility criteria established by the 2014 Farm Bill amendment to the FAIR PO 00000 Frm 00005 Fmt 4701 Sfmt 4702 75009 Act into the regulations. Importers of commodities covered by section 8e of the Agricultural Marketing Agreement Act of 1937 would remain ineligible for an exemption as importers do not pay assessments under marketing order programs. In addition, the FAIR Act amendment also expanded eligibility to cover split organic operations. The requirement that operations be ‘‘solely’’ 100 percent organic was replaced with the requirement that operations maintain a ‘‘valid organic certificate’’ issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP. Handlers who handle certified ‘‘organic’’ and/or ‘‘100 percent organic’’ products would qualify for an organic assessment exemption regardless of whether the commodity subject to the exemption is handled by a person that also handles conventional or nonorganic agricultural products of the same commodity as that for which the exemption is claimed. Examples For all examples, assume that the person that handles or markets a commodity regulated under a marketing order is otherwise obligated to pay assessments under that order and that 60 percent of the marketing order’s budgeted expenses are attributed to market promotion activities, including paid advertising: • A handler who handles all of their volume as certified ‘‘organic’’ or ‘‘100 percent organic’’ product (received from certified organic producers), and maintains a valid organic certificate under the NOP, would be eligible for an organic assessment exemption. The handler would be exempt from 100 percent of the portion of the marketing order assessment attributed to marketing promotion activities (60 percent). The handler would be obligated to pay 40 percent of the assessment rate on 100 percent of the product handled. The assessment calculation would be: Quantity handled × 40 percent of the assessment rate. • A handler who handles 20 percent of their volume as certified ‘‘organic’’ or ‘‘100 percent organic’’ product (received from certified organic producers) and maintains a valid organic certificate under the NOP would be eligible for an organic assessment exemption. The handler would be exempt from the portion of the marketing order assessment attributed to marketing promotion activities (60 percent) on the quantity of the products handled that are organic (20 percent). Conversely, the handler would be obligated to pay 40 percent of the assessment rate on 20 E:\FR\FM\16DEP5.SGM 16DEP5 75010 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS5 percent of the product handled and 100 percent of the assessment rate on 80 percent of the product handled. The assessment calculation would be: (Quantity handled × 20 percent × 40 percent of the assessment rate) + (quantity handled × 80 percent × assessment rate). • A handler who handles 20 percent of their volume as ‘‘organic’’ or ‘‘100 percent organic’’ received from certified organic producers, but does NOT maintain a valid organic certificate under the NOP, would NOT be eligible for any exemption of their marketing order assessments as they do not have proper certification. The handler would be obligated to pay 100 percent of the assessment associated with the quantity of product handled. • An importer who imports a commodity that is subject to import regulation under section 8e would NOT be eligible for an exemption from marketing order assessments as importers are not obligated to pay assessments under a marketing order or the import regulations. Who is eligible for exemption under a research and promotion program? Just as for marketing orders, this proposed rule would modify the eligibility requirements for organic assessment exemptions that are currently in place for research and promotion programs. Under this proposed action, persons who are subject to an assessment under a designated research and promotion program, who maintain a valid organic certificate, and who handle any assessable agricultural commodities that are certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) would be eligible for an organic assessment exemption under amended requirements contained in each of the programs’ respective orders, plans, or regulations. Persons who are importing organic products in compliance with a U.S. equivalency arrangement established by NOP pursuant to OFPA and the NOP regulations would also be eligible for an organic assessment exemption. For the 22 research and promotion programs currently enacted, 16 assess producers, 2 assess handlers, 2 assess manufacturers, and 2 assess processors. Under the provisions for each of the respective programs, many also assess other entities, in addition to the named classes, including importers, exporters, feeders, and seed stock producers. Any of the entities obligated to pay assessments under one of the aforementioned programs is eligible for an organic assessment exemption. VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 Under the current regulation, organic assessment exemptions are available to any person who ‘‘produces or markets solely 100 percent organic products’’ and conforms to certain requirements. As mentioned previously, the recent amendment to the FAIR Act expands the organic assessment exemption eligibility to any person that ‘‘produces, handles, markets, or imports’’ organic products under a ‘‘valid organic certificate’’ issued under the OFPA and the NOP. This proposed rule would remove the ‘‘solely 100 percent organic’’ requirement currently in the regulations and allow split operations to request an organic assessment exemption for all products that qualify as certified ‘‘organic’’ and ‘‘100 percent organic.’’ Also, just as for marketing orders, ‘‘person’’ will continue to mean any individual, group of individuals, corporation, association, cooperative, or other business entity engaged in any of the aforementioned activities. • An importer who maintains a valid organic certificate under the NOP and markets the products that they import as organic products, but the producers of the products are NOT certified under the NOP, would be eligible for an organic assessment exemption if the product is certified as ‘‘organic’’ or ‘‘100 percent organic’’ under a U.S. equivalency arrangement established under the NOP. Examples Initial Regulatory Flexibility Act Analysis In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 601– 612), AMS is required to examine the impact of this proposed rule on small entities. The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions in order that small businesses will not be unduly or disproportionately burdened. Accordingly, AMS has considered the economic impact of this action on small entities and has prepared this initial regulatory flexibility analysis. For all examples, assume that the person produces, handles, processes, or imports a commodity regulated under a research and promotion program and is otherwise obligated to pay assessments under that order: • A producer who maintains a valid organic certificate under the NOP and markets 100 percent of the products they produce as certified ‘‘organic’’ or ‘‘100 percent organic’’ would be eligible for an organic exemption on 100 percent of the quantity produced. • A handler who maintains a valid organic certificate under the NOP and handles 20 percent of the products they handle as certified ‘‘organic’’ or ‘‘100 percent organic’’ products would be eligible for an organic exemption on 20 percent of the total quantity they handle. Conversely, the handler would continue to be obligated to pay the full assessment on the 80 percent of the total quantity they handle that is not ‘‘organic’’ or ‘‘100 percent organic.’’ The assessment calculation would be: quantity produced × 80 percent × assessment rate. • A processor who processes 20 percent of their volume as ‘‘organic’’ or ‘‘100 percent organic’’ products received from certified organic producers, but does NOT maintain a valid organic certificate under the NOP, would NOT be eligible for any exemption of their assessment obligation as they are NOT a certified handling operation. The processor would be obligated to pay 100 percent of the assessment associated with the quantity of product they processed and marketed. Analysis of Marketing Order Programs Marketing orders issued pursuant to the AMAA, and the rules issued thereunder, are unique in that they are brought about through group action of essentially small entities acting on their own behalf. Assessments under marketing order programs are paid by the handlers regulated under each of the marketing orders. There are approximately 950 handlers regulated under the 23 Federal marketing orders with market promotion authority (there are 28 marketing orders total—5 do not have authority for market promotion activities). Currently, only 10 entities handle or market solely 100 percent organic products and claim exemptions from paying assessments for market promotion activities, including paid advertising, under the assessment exemption regulations contained in § 900.700. USDA believes that as many as 20 percent of the entities handling agricultural products under the various marketing orders (approximately 190 firms) may handle some quantity of organic products, but do not qualify for an assessment exemption under the current regulations. Small agricultural service firms are defined by the Small Business Administration (SBA) as those having annual receipts of less than $7,000,000, and small agricultural producers are defined as those having annual receipts of less than $750,000 (13 CFR 121.201). All of the entities currently approved for an organic assessment exemption under the marketing order programs would be PO 00000 Frm 00006 Fmt 4701 Sfmt 4702 E:\FR\FM\16DEP5.SGM 16DEP5 mstockstill on DSK4VPTVN1PROD with PROPOSALS5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules classified by SBA as small agricultural service firms. In addition, although the exact number of potential applicants is unknown, USDA believes that many of the entities that would become eligible for an organic assessment exemption as a result of this proposed action may also be classified as small firms under the SBA classification. As previously mentioned, Section 501 of the FAIR Act was amended by the 2002 Farm Bill to exempt persons that produced and marketed solely 100 percent organic products, and were not split operations, from the payment of an assessment for commodity promotion activities under a commodity promotion law. The amendment required the Secretary to promulgate regulations with regard to the eligibility and compliance of such organic assessment exemptions. AMS subsequently added § 900.700 to the General Regulations (7 CFR part 900) governing marketing orders to establish the criteria and procedure for obtaining an organic assessment exemption. On February 7, 2014, the FAIR Act was again amended by the 2014 Farm Bill to broaden the eligibility criteria for receiving an organic assessment exemption under a commodity promotion program. Specifically, the 2014 Farm Bill amendment to the FAIR Act exempts persons that produce, handle, market, or import products certified as ‘‘organic’’ or ‘‘100 percent organic’’ from payment of assessments under a commodity promotion program. The exemption applies regardless of whether a producer, handler, marketer, or importer also produces, handles, markets, or imports conventional or nonorganic products. The statute further requires the Secretary to promulgate regulations under each of the commodity promotion programs to implement the amendment. As required, USDA is proposing amendments to the general regulations that would affect 23 of the 28 Federal marketing orders that have authority for market promotion, including paid advertising. These amendments would modify the current provisions and broaden the eligibility for organic handling operations to become exempt from paying assessments on the certified ‘‘organic’’ and ‘‘100 percent organic’’ products that they handle, regardless of whether the handler is a split operation. The 23 marketing order programs affected by this proposed rule allow for promotion activities designed to assist, improve, and promote the marketing, distribution, or consumption of the commodities covered under the marketing orders. Some of the orders also include authority for paid VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 advertising. Expenses necessary to administer the programs are paid for by assessments levied on handlers regulated under the various marketing orders. Market promotion activities, including paid advertising, are only one component of each marketing order’s regulatory scheme. The assessment exemption for organic products, as currently implemented and as proposed going forward, only applies to the portion of a marketing order assessment that is associated with market promotion activities, including paid advertising. All handlers subject to regulation under a marketing order are obligated to pay the portion of the assessment that is not directly related to market promotion, including paid advertising. This includes handlers who are granted an organic assessment exemption. Under this proposal, § 900.700 would be amended to broaden the criteria for persons eligible to obtain an assessment exemption for marketing promotion, including paid advertising; streamline the procedure for applying for an exemption; modify the procedure for calculating the assessment exemption; and revise other procedural details necessary to effectuate the 2014 Farm Bill amendment. These changes would allow more handlers to qualify for an organic assessment exemption than are presently eligible under the current regulations. Regarding the impact on affected entities under a marketing order, this proposed rule would impose minimal costs incurred in filing the exemption application and in maintaining records needed to verify the applicant’s exemption status during the period that the entity is exempt. Under the proposed revisions, applicants would still be required to submit an application for exemption on Form FV– 649 and receive approval from the applicable board or committee to obtain the assessment exemption. However, the eligibility criteria would be broadened and the amount of documentation required of an applicant would be reduced, thus reducing the burden on entities who wish to participate. Applicants would continue to submit one application annually. The annual burden associated with requests for organic assessment exemptions for all of the marketing order industries is estimated to total 47.5 hours (190 applicants × 15 minutes) (see the Paperwork Reduction Act section below for greater explanation of the information collection and recordkeeping burden). The total estimated cost burden associated with the information PO 00000 Frm 00007 Fmt 4701 Sfmt 4702 75011 collection is estimated to be $712, or $3.75 per applicant. The total cost was estimated by multiplying the expected burden hours associated with the organic exemption application (47.5 hours) by $15.00 per hour, a sum deemed reasonable should an applicant be compensated for their time. During the 2012–2013 marketing season, assessments for all marketing orders totaled approximately $89,700,000. Of that amount, about $58,300,000 (or 65 percent) was made available for marketing promotion activities, including paid advertising. While there is not enough information to generate a reasonable estimate, USDA believes about two percent, on average, of the total assessments are for commodities that are certified organic. Thus, assessments on organic commodities might have totaled as much as $1,794,000 (2 percent of $89,700,000). That total might be reduced moving forward by $1,166,000 (65 percent of $1,794,000—the portion of the assessments made available for marketing activities) if all of the approximately 190 handlers that USDA believes may be eligible were to apply to the respective board or committee and be approved for an organic assessment exemption under the proposed regulations. There are approximately 10 handlers that are approved for organic assessment exemptions under the current regulation, with a total exempted amount of approximately $135,000. The current exemption averages approximately $13,500 per handler. Based on the estimate that 190 handlers might be exempt from assessments under the proposed criteria, and an estimated $1,166,000 of potential exemptions, USDA estimates that exempted organic handlers may average $6,136 in decreased assessments. This amount is less than half of the current average. However, the revised eligibility requirements, as proposed herein, would be expected to attract more handlers than under the current regulations. Many of those handlers may be small entities or may only handle a small percentage of organic products relative to the total amount of product handled. There is some variation among the 23 marketing orders on the percent of assessments used for market promotion activities, including paid advertising. Thus, the actual reduction in assessments would differ among the various marketing orders. In fact, the amounts allocated for marketing promotion activities as a percentage of the total marketing order budgets range from less than 5 percent to almost 95 E:\FR\FM\16DEP5.SGM 16DEP5 75012 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS5 percent. As such, the financial impact of this proposal to each handler individually, and to each of the 23 distinct marketing order programs collectively, cannot be accurately estimated. However, several of the affected marketing order programs do expect to see large reductions in assessment revenue moving forward. The Oregon-Washington Fresh Pear Committee anticipates a $362,718 reduction is assessments, the California Almond Board expects a reduction of $298,000, and the California Raisin Administrative Committee expects a reduction of $180,000 as a result of the expanded eligibility for organic assessment exemptions. Should this rule be implemented, these boards and committees would have to adjust programs and reduce budgeted expenses accordingly. Since this proposed action has the potential to exempt agricultural handling entities from assessments, AMS believes that this rule would have a net beneficial economic impact on exempted firms. The additional burden associated with the additional information collection would be more than offset by reduced assessment obligations. The benefits for this proposed rule are not expected to be disproportionately greater or less for smaller entities than for larger entities regulated under any of the 23 marketing order programs. Analysis of Research and Promotion Programs Research and promotion programs established under the various commodity promotion acts, and the rules and regulations issued thereunder, are like marketing orders in that they are uniquely brought about through group action of essentially small entities acting on their own behalf. Producers, handlers, first handlers, processors, importers, exporters, feeders, and seed stock producers pay assessments to the national boards and councils that administer the various commodity research and promotion programs, or in some cases to other parties designated by a board or council to collect assessments. The number of entities paying assessments under each of the research and promotion programs varies considerably. For example, the mango program receives assessments from approximately 198 handlers and importers, while the beef program receives assessments from nearly 1 million producers. As mentioned previously, small agricultural service firms are defined by the SBA as those having annual receipts of less than $7,000,000, and small VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 agricultural producers are defined as those having annual receipts of less than $750,000. Many of the handlers, importers, exporters, feeders, and seed stock producers currently approved for organic assessment exemptions under the research and promotion programs would be classified by SBA as small agricultural service firms. In addition, most of the producers currently approved for exemptions would also be classified as small agricultural producers. The exact number and size of the potential applicants that would be eligible for an assessment exemption as a result of this proposal is not known. The current and estimated number of respondents filing exemption claims appears later in this discussion; however, USDA believes that many of the entities that would become eligible for an organic assessment exemption under the proposed changes may also be classified as small firms and/or small producers under the SBA classification. This proposed rule was initiated as a result of amendments to the FAIR Act contained in the 2014 Farm Bill. This rule would modify the current organic assessment exemption regulations under each of the 22 research and promotion programs to revise the eligibility criteria for obtaining an organic assessment exemption. As proposed, entities that produce, handle, market, or import organic products may be exempt from the payment of an assessment under a commodity promotion law with respect to any agricultural commodity that is certified as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP. The exemption would apply to the certified ‘‘organic’’ or ‘‘100 percent organic’’ products regardless of whether the agricultural commodity subject to the exemption is produced, handled, marketed, or imported by a person that also produces, handles, or markets conventional or nonorganic agricultural products. This is a change from the current regulations, which only allow organic assessment exemptions for organic operations that produce and market solely products that are ‘‘100 percent organic’’ as defined under the OFPA and are not split operations. Under the current regulations, eligible producers, handlers, first handlers, processors, importers, exporters, feeders, and seed stock producers that wish to be exempted from assessment on their certified organic products must submit a request for exemption to the appropriate board or council on Form AMS–15. This provision would not change as a result of this proposed rule. However, the proposed action would reduce the information collection requirements for requesting an organic PO 00000 Frm 00008 Fmt 4701 Sfmt 4702 assessment exemption to reflect the revised eligibility criteria and would necessitate modifying Form AMS–15 to reflect the proposed changes. The modified form would continue to be required under the proposed revisions to assist the board or council in the effective administration of the exemption and to ensure compliance with the exemption requirements. In preparing this initial regulatory flexibility analysis, AMS has attempted to identify the entities that would be affected by the proposed rule and examine the potential impact on such entities. AMS has determined that this proposed rule would have very little negative impact on entities regulated under research and promotion programs. Further, the proposed changes would only impose minimal costs incurred in the filing of the exemption request and in maintaining records needed to verify the applicant’s exemption status during the period that the entity is exempt. Under the proposed revisions, the required information collection burden would be reduced for entities who wish to initiate or perpetuate an organic assessment exemption. Applicants would continue to be required to submit one application annually. All of the entities paying assessments to the research and promotion programs are eligible to take advantage of the proposed rule changes contained herein, provided the parties elect to apply and otherwise comply with the exemption requirements as specified under each of the individual orders. Approximately 1,493 entities are currently approved for organic assessment exemptions under the 22 research and promotion programs. Organic assessment exemptions for the past year were approximately $1,400,000 for all of the programs in aggregate. In 2013, it is estimated that the dairy products program had the largest number of exemptions, with 1,150 producers exempt, and the highest dollar amount, with nearly 1 million dollars of assessment exemptions. Participation in the other programs varied. Ten of the 22 research and promotion programs currently do not have any entities approved for organic assessment exemptions. The estimated number of respondents filing exemption claims with the boards or councils after implementation of the proposed changes to the regulations is anticipated as follows: Current Beef ...................... Blueberries ............ E:\FR\FM\16DEP5.SGM 16DEP5 30 8 Estimated 2,966 204 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules Current Estimated Christmas trees .... Cotton ................... Dairy ..................... Eggs ...................... Fluid milk .............. Hass avocados ..... Honey ................... Lamb ..................... Mangos ................. Mushrooms ........... Paper and Paperbased Packaging Peanuts ................. Popcorn ................ Pork ...................... Potatoes ................ Raspberries .......... Softwood lumber ... Sorghum ............... Soybeans .............. Watermelons ......... 0 0 1,150 0 0 230 2 3 3 7 0 (1) 1,823 20 11 771 327 7 75 246 0 0 0 5 6 0 0 10 39 0 0 85 170 18 904 232 0 10 1,930 412 Totals ............. 1,493 10,211 mstockstill on DSK4VPTVN1PROD with PROPOSALS5 1 No estimate. No respondents are expected from among Christmas tree, paper and paperbased packaging, or softwood lumber entities, given the nature of their industries. In addition, several of the programs exempt smaller entities from assessment—fluid milk processors processing less than 3 million pounds; egg producers owning 75,000 or fewer hens; raspberry producers producing less than 20,000 pounds; mushroom producers producing less than 500,000 pounds; honey first handlers handling less than 250,000 pounds; popcorn processors processing less than 4 million pounds; blueberry producers producing less than 2,000 pounds; and sorghum importers importing less than 1,000 bushels of grain or 5,000 tons of silage. More new respondents would have been expected under those programs if the smaller entities were not already exempt based on minimum quantities. Under the proposed regulations, the annual burden related to submitting requests for organic assessment exemptions for all of the entities covered under the 22 research and promotion programs is estimated to total 2,552.75 hours (10,211 entities × 15 minutes) (see the Paperwork Reduction Act section for more detail). The total financial burden associated with the information collection for all industries covered by the programs is estimated to be $38,291.25, or $3.75 per applicant. The total cost was estimated by multiplying the expected burden hours associated with the exemption application (2,552.75 hours) by $15.00 per hour, a sum deemed reasonable should an applicant be compensated for their time. VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 This proposed rule would allow eligible producers, handlers, first handlers, processors, importers, exporters, feeders, and seed stock producers to request an exemption from paying assessments on products certified as ‘‘organic’’ or ‘‘100 percent organic.’’ The proposed changes would revise the organic exemption eligibility criteria under each of the research and promotion programs, thereby making the exemption available to more entities. The revised eligibility criteria are expected to increase the total number of participants as well as the total amount of organic assessment exemptions under each of the programs. The estimated total in organic assessment exemption amounts expected to result from revising the eligibility requirements are as follows: Beef ........................................... Blueberries ............................... Christmas trees ........................ Cotton ....................................... Dairy ......................................... Eggs .......................................... Fluid milk ................................ Hass avocados ......................... Honey ....................................... Lamb ......................................... Mangos ..................................... Mushrooms .............................. Paper and Paper-based packaging ..................................... Peanuts ..................................... Popcorn .................................... Pork .......................................... Potatoes .................................... Raspberries ............................... Softwood lumber ..................... Sorghum ................................... Soybeans .................................. Watermelons ............................ $2,400,000 (1) 0 (1) 4,190,000 742,500 4,530,000 850,000 ( 1) 114,000 ( 1) 132,655 75013 production, handling, and marketing entities from assessments, AMS believes that this rule would have a net beneficial economic impact on exempted firms. The additional burden associated with the additional information collection would be more than offset by reduced assessment obligations. The benefits for this proposed rule are not expected to be disproportionately greater or less for small producers, handlers, or marketers than for larger entities regulated under any of the 22 research and promotion programs. To ensure that AMS is able to thoroughly assess the potential impact of this proposed rule on affected entities, interested parties are invited to submit comments, views, and opinions on the probable regulatory and informational impacts of this action on small entities. Comments may indicate the size, number, and type of entities that would be affected by this proposal, explain the potential effects of the proposed amendments on those entities, and provide any pertinent information and data. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 0 Chapter 35), the information collection 6,517 requirements have been previously (1) approved by the Office of Management 111,000 and Budget (OMB) under 23 Federal ( 1) (1) marketing order programs (7 CFR parts 0 905, 906, 915, 922, 923, 925, 927, 929, 122,500 930, 932, 948, 955, 956, 958, 959, 966, 427,800 981, 982, 984, 985, 987, 989, and 993) (1) and 22 research and promotion programs (7 CFR parts 1150, 1160, 1205, Total .................................. 13,626,972 1206, 1207, 1208, 1209, 1210, 1212, 1 No estimate. 1214, 1215, 1216, 1217, 1218, 1219, 1220, 1221, 1222, 1230, 1250, 1260, and There are no estimated assessment 1280). Upon publication of the final exemption amounts for the Christmas rule, AMS will submit a Justification for tree, paper and paper-based-packaging, Change to OMB for the AMS–15 or softwood lumber programs given the Exemption Application Form for nature of these industries. Some boards Research and Promotion Programs, and councils were able to estimate the OMB No. 0581–0093 National Research, number of organic production and Promotion and Consumer Information marketing operations within their industries; however, based upon current Programs. AMS will also submit a data, there is not enough information to Justification for Change to OMB for the generate a reasonable estimate of the FV–649 Exemption Application Form potential dollar amount of organic for Marketing Orders, OMB No. 0581– assessment exemptions reported as ‘‘no 0216 Fruit and Vegetable Marketing estimate.’’ The boards and councils that Orders Certified Organic Handler reported ‘‘no estimate’’ generally Marketing Promotion Assessment represent programs that estimated small Exemption under 23 Federal Marketing percentages of participation amongst Orders. The Justification for Change will their industries. Should this rule be request approval for an increase in implemented, these boards and number of respondents, reduction in per committees would have to adjust response time, and an increase in programs and reduce budgeted expenses burden hours for these two forms. While this proposed rule has not accordingly. Since this proposed action has the received the approval of USDA, it has potential to exempt agricultural been determined that it is consistent PO 00000 Frm 00009 Fmt 4701 Sfmt 4702 E:\FR\FM\16DEP5.SGM 16DEP5 75014 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules with and would effectuate the purposes of the Commodity Promotion, Research, and Information Act of 1996, for the programs for which the Act is applicable. A 30-day comment period for the proposed rule is provided to allow interested persons to submit written comments on the proposed changes to the criteria for identifying persons eligible to obtain an assessment exemption for organic products and the procedural details for obtaining an exemption under the various commodity promotion programs. Thirty days is deemed appropriate because this action was mandated by Congress under the 2014 Farm Bill and is intended to provide a broader exemption to certified producers, handlers, marketers, feeders, seed stock producers, producers, exporters and importers of ‘‘organic’’ and ‘‘100 percent organic’’ products. All comments timely received will be considered before a final determination is made on this matter. List of Subjects 7 CFR Part 900 Administrative practice and procedure, Freedom of information, Marketing agreements, Reporting and recordkeeping requirements. Administrative practice and procedure, Advertising, Agricultural research, Mango, Marketing agreements, Reporting and recordkeeping requirements. mstockstill on DSK4VPTVN1PROD with PROPOSALS5 7 CFR Part 1214 Administrative practice and procedure, Advertising, Christmas trees promotion, Consumer information, Marketing agreements, Reporting and recordkeeping requirements. 7 CFR Part 1218 7 CFR Part 1206 Jkt 235001 Administrative practice and procedure, Advertising, Consumer education, Honey and honey products, Marketing agreements, Promotion, Reporting and recordkeeping requirements. Administrative practice and procedure, Advertising, Consumer information, Marketing agreements, Promotion, Reporting and recordkeeping requirements, Softwood lumber. Administrative practice and procedure, Advertising, Agricultural research, Cotton, Reporting and recordkeeping requirements. 20:55 Dec 15, 2014 7 CFR Part 1212 7 CFR Part 1217 7 CFR Part 1205 VerDate Sep<11>2014 Administrative practice and procedure, Advertising, Agricultural research, Reporting and recordkeeping requirements, Watermelons. Administrative practice and procedure, Advertising, Agricultural research, Peanuts, Reporting and recordkeeping requirements. Administrative practice and procedure, Fluid milk products, Promotion, Reporting and recordkeeping requirements. Administrative practice and procedure, Advertising, Consumer information, Marketing agreements, 7 CFR Part 1210 7 CFR Part 1216 7 CFR Part 1160 7 CFR Part 1208 Administrative practice and procedure, Advertising, Agricultural research, Imports, Mushrooms, Reporting and recordkeeping requirements. Administrative practice and procedures, Advertising, Agricultural research, Popcorn, Reporting and recordkeeping requirements. Administrative practice and procedure, Dairy products, Reporting and recordkeeping requirements, Research. Advertising, Agricultural Research, Imports, Potatoes, Reporting and recordkeeping requirements. 7 CFR Part 1209 7 CFR Part 1215 7 CFR Part 1150 7 CFR Part 1207 Raspberry promotion, Reporting and recordkeeping requirements. 7 CFR Part 1221 Administrative practice and procedure, Advertising, Consumer information, Marketing agreements, Reporting and recordkeeping requirements, Sorghum and sorghum product. 7 CFR Part 1222 Administrative practice and procedure, Advertising, Consumer information, Marketing agreements, Paper and paper-based-packaging promotion, Reporting and recordkeeping requirements. 7 CFR Part 1230 Administrative practice and procedure, Advertising, Agricultural research, Marketing agreement, Pork and pork products, Reporting and recordkeeping requirements. 7 CFR Part 1250 Administrative practice and procedure, Advertising, Agricultural research, Eggs and egg products, Reporting and recordkeeping requirements. 7 CFR Part 1260 Administrative practice and procedure, Advertising, Agricultural research, Imports, Marketing agreements, Meat and meat products, Reporting and recordkeeping requirements. 7 CFR Part 1280 Administrative practice and procedure, Advertising, Lamb and lamb products, Marketing agreements, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, 7 CFR parts 900, 1150, 1160, 1205, 1206, 1207, 1208, 1209, 1210, 1212, 1214, 1215, 1216, 1217, 1218, 1219, 1220, 1221, 1222, 1230, 1250, 1260, and 1280 are proposed to be amended as follows: PART 900—GENERAL REGULATIONS Administrative practice and procedure, Advertising, Agricultural Research, Blueberries, Reporting and recordkeeping requirements. ■ 7 CFR Part 1219 Authority: 7 U.S.C. 601–674 and 7 U.S.C. 7401. Administrative practice and procedure, Advertising, Agricultural research, Hass avocados, Reporting and recordkeeping requirements. 7 CFR Part 1220 Administrative practice and procedure, Agricultural research, Reporting and recordkeeping requirements, Soybeans and soybean products. PO 00000 Frm 00010 Fmt 4701 Sfmt 4702 1. The authority citation for 7 CFR part 900 continues to read as follows: ■ 2. Revise § 900.700 to read as follows: § 900.700 Exemption from assessments. (a) This section specifies criteria for identifying persons eligible to obtain an exemption from the portion of the assessment used to fund marketing promotion activities under a marketing order and the procedures for applying for such an exemption under 7 CFR parts 905, 906, 915, 922, 923, 925, 927, E:\FR\FM\16DEP5.SGM 16DEP5 mstockstill on DSK4VPTVN1PROD with PROPOSALS5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules 929, 930, 932, 948, 955, 956, 958, 959, 966, 981, 982, 984, 985, 987, 989, 993, and such other parts (included in 7 CFR parts 905 through 998) covering marketing orders for fruits, vegetables, and specialty crops as may be established or amended to include market promotion. For the purposes of this section, the term ‘‘assessment period’’ means fiscal period, fiscal year, crop year, or marketing year as defined under these parts; the term ‘‘marketing promotion’’ means marketing research and development projects or marketing promotion, including paid advertising designed to assist, improve, or promote the marketing, distribution, or consumption of the applicable commodity. (b) A handler who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic handling system plan and is subject to assessments under a part or parts specified in paragraph (a) of this section may be exempt from the portion of the assessment applicable to marketing promotion, including paid advertising, provided that: (1) Only agricultural commodities certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a handler regardless of whether the agricultural commodity subject to the exemption is handled by a person that also handles conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The handler maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); (4) Any handler so exempted shall continue to be obligated to pay assessments under such part or parts specified that are associated with any agricultural products that do not qualify for an exemption under this section; and (5) For exempted products, any handler so exempted shall be obligated to pay the portion of the assessment associated with the other authorized activities under such part or parts other than marketing promotion, including paid advertising. (c) Assessment Exemption Application. (1) To be exempt from paying assessments for these purposes under a part or parts listed in paragraph (a) of this section, the handler shall submit an application to the committee or board established under the VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 applicable part or parts prior to or during the assessment period. This application, Form FV–649, ‘‘Certified Organic Handler Application for Exemption from Market Promotion Assessments Paid Under Federal Marketing Orders,’’ shall include: (i) The date, applicable committee or board, and Federal marketing order number; (ii) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (iii) Certification that the applicant maintains a valid certificate of organic operation under the OFPA and the NOP; (iv) Certification that the applicant handles or markets organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (v) Certification that the applicant is otherwise subject to assessments under the Federal marketing order program for which the exemption is requested; (vi) The number of organic certified producers for whom they handle or market product (including the applicant); (vii) A requirement that the applicant attach a copy of their certificate of organic operation and all applicable producer certificates of organic operation issued by a USDA-accredited certifying agent under the OFPA and the NOP; (viii) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (ix) Such other information as the committee or board may require, with the approval of the Secretary. (2) The handler shall file the application with the committee or board, prior to or during the applicable assessment period, and annually thereafter, as long as the handler continues to be eligible for the exemption. If the person complies with the requirements of this section and is eligible for an assessment exemption, the committee or board will approve the exemption request and provide written notification of such to the applicant within 30 days. If the application is disapproved, the committee or board will provide written notification of the reason(s) for such disapproval within the same timeframe. (3) The exemption will apply at the beginning of the next assessable period following notification of approval of the assessment exemption, in writing, by the committee or board. (d) Assessment Exemption Calculation. (1) The applicable assessment rate for any handler approved for an exemption shall be computed by dividing the committee’s PO 00000 Frm 00011 Fmt 4701 Sfmt 4702 75015 or board’s estimated non-marketing promotion expenditures by the committee’s or board’s estimated total expenditures approved by the Secretary and applying that percentage to the assessment rate applicable to all persons for the assessment period. The modified assessment rate shall then be applied to the quantity of certified ‘‘organic’’ or ‘‘100 percent organic’’ products handled under an approved organic assessment exemption as provided in paragraph (c)(2) of this section. Products handled not subject to an approved organic assessment exemption shall be assessed at the assessment rate applicable to all persons for the assessment period. The committee’s or board’s estimated nonmarketing promotion expenditures shall exclude the direct costs of marketing promotion and the portion of committee’s or board’s administrative and overhead costs (e.g., salaries, supplies, printing, equipment, rent, contractual expenses, and other applicable costs) to support and administer the marketing promotion activities. (2) If a committee or board does not plan to conduct any market promotion activities in a fiscal year, the committee or board may submit a certification to that effect to the Secretary, and as long as no assessments for such fiscal year are used for marketing promotion projects, or the administration of projects are funded by a previous fiscal period’s assessments, the committee or board may assess all handlers, regardless of their organic status, the full assessment rate applicable to the assessment period. (3) For each assessment period, the Secretary shall review the portion of the assessment rate applicable to marketing promotion for persons eligible for an exemption and, if appropriate, approve the assessment rate. (4) When the requirements of this section for exemption no longer apply to a handler, the handler shall inform the committee or board within 30 days and pay the full assessment on all remaining assessable product for all committee or board assessments from the date the handler no longer is eligible to the end of the assessment period. (5) Within 30 days following the applicable assessment period, the committee or board shall re-compute the applicable assessment rate for handlers exempt under this section based on the actual expenditures incurred during the applicable assessment period. The Secretary shall review, and if appropriate, approve any change in the portion of the assessment rate for market promotion applicable to exempt handlers, and authorize adjustments for E:\FR\FM\16DEP5.SGM 16DEP5 75016 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules any overpayments or collection of underpayments. PART 1150—DAIRY PROMOTION PROGRAM 3. The authority citation for 7 CFR part 1150 continues to read as follows: ■ Authority: 7 U.S.C. 4501–4514 and 7 U.S.C. 7401. 4. In § 1150.157, revise paragraphs (a), (b), (c), (d), (e), (g), (i), and (j) to read as follows: ■ mstockstill on DSK4VPTVN1PROD with PROPOSALS5 § 1150.157 Assessment exemption. (a) A producer described in § 1150.152(a)(1) and (2) who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the payment of assessments provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of the producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (b) To apply for exemption under this section, a producer subject to assessments pursuant to § 1150.152(a)(1) and (2) shall submit a request to the Board on an Organic Exemption Request Form (Form AMS–15) at any time during the year initially, and annually thereafter on or before July 1, for as long as the producer continues to be eligible for the exemption. (c) A producer request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid organic certificate issued under the OFPA and the NOP; VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 (3) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a producer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. (e) A producer approved for exemption under this section shall provide a copy of the Certificate of Exemption to each person responsible for remitting assessments to the Board on behalf of the producer pursuant to § 1150.152(a). * * * * * (g) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments on those products. Such importer may submit documentation to the Board and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ dairy products on an Organic Exemption Request Form (Form AMS– 15) at any time initially, and annually thereafter on or before July 1, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of producers in paragraph (c) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a Certificate of Exemption to the importer. The Board will also issue the importer an alphanumeric number valid for 1 year from the date of issue. This alphanumeric number should be entered by the importer on the CBP entry documentation. Any line item entry of ’’organic’’ or ‘‘100 percent organic’’ dairy products bearing this alphanumeric number assigned by the Board will not be subject to assessments. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported PO 00000 Frm 00012 Fmt 4701 Sfmt 4702 agricultural products that do not qualify for an exemption under this section. * * * * * (i) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. (j) An importer who is exempt from payment of assessments under paragraph (g) of this section shall be eligible for reimbursement of assessments collected by the CBP on certified ‘‘organic’’ or ‘‘100 percent organic’’ dairy products and may apply to the Secretary for a reimbursement. The importer would be required to submit satisfactory proof to the Secretary that the importer paid the assessment on exempt organic products. PART 1160—FLUID MILK PROMOTION PROGRAM 5. The authority citation for 7 CFR part 1160 continues to read as follows: ■ Authority: 7 U.S.C. 6401–6417 and 7 U.S.C. 7401. 6. In § 1160.215, revise paragraphs (b) through (e) to read as follows: ■ § 1160.215 Assessment exemption. * * * * * (b) A fluid milk processor described in § 1160.211(a) who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic handling system plan may be exempt from the payment of assessments provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a fluid milk processor regardless of whether the agricultural commodity subject to the exemption is processed by a person that also processes conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The fluid milk processor maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501– 6522) (OFPA) and the NOP regulations E:\FR\FM\16DEP5.SGM 16DEP5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules issued under OFPA (7 CFR part 205); and (4) Any fluid milk processor so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (c) To apply for an assessment exemption, a fluid milk processor described in § 1160.211(a) shall submit a request to the Board on an Organic Exemption Request Form (Form AMS– 15) at any time during the year initially, and annually thereafter on or before July 1, for as long as the processor continues to be eligible for the exemption. (d) A fluid milk processor request for exemption shall include the following information: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid organic certificate issued under the OFPA and the NOP; (3) Certification that the applicant processes organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (e) If a fluid milk processor complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the processor within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. * * * * * PART 1205—COTTON RESEARCH AND PROMOTION 7. The authority citation for 7 CFR part 1205 continues to read as follows: mstockstill on DSK4VPTVN1PROD with PROPOSALS5 ■ Authority: 7 U.S.C. 2101–2118 and 7 U.S.C. 7401. 8. In § 1205.519, revise paragraphs (a), (b), (c), (d), (e), (f), and (h) and add paragraph (i) to read as follows: ■ § 1205.519 Organic exemption. (a) A producer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 system plan may be exempt from the payment of assessments provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under the OFPA (7 CFR part 205); and (4) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (b) To apply for an exemption under this section, an eligible cotton producer shall submit a request for exemption to the Board on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter on or before the beginning of the crop year, as long as the producer continues to be eligible for the exemption. (c) A producer request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant produces and/or imports organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a producer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the PO 00000 Frm 00013 Fmt 4701 Sfmt 4702 75017 application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. (e) A producer approved for exemption under this section shall provide a copy of the Certificate of Exemption to each handler to whom the producer sells cotton. The handler shall maintain records showing the exempt producer’s name and address and the exemption number assigned by the Board. (f) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments on those products. Such importer may submit documentation to the Board and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ cotton and cotton products on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of producers in paragraph (c) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a Certificate of Exemption to the importer. The Board will also issue the importer an alphanumeric number valid for 1 year from the date of issue. This alphanumeric number should be entered by the importer on the Customs entry documentation. Any line item entry of ‘‘organic’’ or ‘‘100 percent organic’’ cotton and cotton products bearing this alphanumeric number assigned by the Board will not be subject to assessments. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. * * * * * (h) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. (i) An importer who is exempt from payment of assessments under E:\FR\FM\16DEP5.SGM 16DEP5 75018 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules paragraph (f) of this section shall be eligible for reimbursement of assessments collected by Customs on certified ‘‘organic’’ or ‘‘100 percent organic’’ cotton and cotton products and may apply to the Secretary for a reimbursement. The importer would be required to submit satisfactory proof to the Secretary that the importer paid the assessment on exempt organic products. PART 1206—MANGO PROMOTION, RESEARCH, AND INFORMATION 9. The authority citation for 7 CFR part 1206 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425 and 7 U.S.C. 7401. 10. In § 1206.202, revise paragraphs (a), (b), (c), (d), and (e) and add paragraph (g) to read as follows: ■ mstockstill on DSK4VPTVN1PROD with PROPOSALS5 § 1206.202 Exemption for organic mangos. (a) A first handler who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic handling system plan may be exempt from the payment of assessments provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products handled by the first handler regardless of whether the agricultural commodity subject to the exemption is handled by a person that also handles conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The first handler maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any first handler so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (b) To apply for exemption under this section, an eligible first handler shall submit a request for exemption to the Board on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter on or before the beginning of the fiscal period, as long as the first handler continues to be eligible for the exemption. (c) A first handler request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant handles organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a first handler complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the first handler within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. (e) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP shall be exempt from the payment of assessments on those products. Such importer may submit documentation to the Board and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ mangos on an Organic Exemption Request Form (Form AMS– 15) at any time initially, and annually thereafter on or before the beginning of the fiscal period, as long as the importer continues to be eligible for exemption. This documentation shall include the same information required of first handlers in paragraph (c) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a Certificate of Exemption to the importer within the applicable timeframe. If Customs collects the assessment on exempt product that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the Board must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Board for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Board that the importer paid the assessment on exempt organic product. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported PO 00000 Frm 00014 Fmt 4701 Sfmt 4702 agricultural products that do not qualify for an exemption under this section. * * * * * (g) An importer who is exempt from payment of assessments under paragraph (e) of this section shall be eligible for reimbursement of assessments collected by the CBP on certified ‘‘organic’’ or ‘‘100 percent organic’’ mangos and may apply to the Secretary for a reimbursement. The importer would be required to submit satisfactory proof to the Secretary that the importer paid the assessment on exempt organic products. PART 1207—POTATO RESEARCH AND PROMOTION PLAN 11. The authority citation for 7 CFR part 1207 continues to read as follows: ■ Authority: 7 U.S.C. 2611–2627 and 7 U.S.C. 7401. 12. In § 1207.514, revise paragraphs (a), (b), (c), (d), (e), (f), and (h) to read as follows: ■ § 1207.514 potatoes. Exemption for organic (a) A producer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the payment of assessments provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (b) To apply for exemption under this section, the producer shall submit a request to the Board on an Organic Exemption Request Form (Form AMS– 15) at any time during the year initially, and annually thereafter on or before July 1, for as long as the producer continues to be eligible for the exemption. E:\FR\FM\16DEP5.SGM 16DEP5 mstockstill on DSK4VPTVN1PROD with PROPOSALS5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules (c) The producer request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a producer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. (e) A producer approved for exemption under this section shall provide a copy of the Certificate of Exemption to each handler to whom the producer sells potatoes. The handler shall maintain records showing the exempt producer’s name and address and the exemption number assigned by the Board. (f) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP shall be exempt from the payment of assessments on those products. Such importer may submit documentation to the Board and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ potatoes, potato products, and seed potatoes on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter on or before July 1, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of producers in paragraph (c) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a Certificate of Exemption to the importer. If Customs collects the assessment on exempt product that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 Board must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Board for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Board that the importer paid the assessment on exempt organic product. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. * * * * * (h) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. PART 1208—PROCESSED RASPBERRY PROMOTION, RESEARCH, AND INFORMATION ORDER 13. The authority citation for 7 CFR part 1208 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 7401. 14. In § 1208.53, revise paragraph (d) to read as follows: ■ § 1208.53 Exemption and reimbursement procedures. * * * * * (d) Organic exemption. (1) A producer of raspberries for processing who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the payment of assessments provided that: (i) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (ii) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural PO 00000 Frm 00015 Fmt 4701 Sfmt 4702 75019 commodity as that for which the exemption is claimed; (iii) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (iv) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (2) To apply for exemption under this section, an eligible producer shall submit a request to the Council on an Organic Exemption Request Form (Form AMS–15) at any time during the year initially, and annually thereafter on or before the beginning of the fiscal period, for as long as the producer continues to be eligible for the exemption. (3) A producer request for exemption shall include the following: (i) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (ii) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (iii) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (iv) A requirement that the applicant attach a copy of their certificate of organic operation provided by a USDAaccredited certifying agent under the OFPA and the NOP; (v) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (vi) Such other information as may be required by the Council, with the approval of the Secretary. (4) If a producer complies with the requirements of this section, the Council will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Council will notify the applicant of the reason(s) for disapproval within the same timeframe. (5) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments on those products. Such importer may submit documentation to the Council and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ processed raspberries on an Organic Exemption Request Form (Form AMS–15) at any time initially, and E:\FR\FM\16DEP5.SGM 16DEP5 75020 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules annually thereafter on or before the beginning of the fiscal period, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of a producer in paragraph (d)(3) of this section. If the importer complies with the requirements of this section, the Council will grant the exemption and issue a Certificate of Exemption to the importer within the applicable timeframe. If Customs collects the assessment on exempt product that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the Council must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Council for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Council that the importer paid the assessment on exempt organic product. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. * * * * * PART 1209—MUSHROOM PROMOTION, RESEARCH, AND CONSUMER INFORMATION ORDER 15. The authority citation for 7 CFR part 1209 continues to read as follows: ■ Authority: 7 U.S.C. 6101–6112 and 7 U.S.C. 7401. 16. In § 1209.52, revise paragraph (a) to read as follows: ■ mstockstill on DSK4VPTVN1PROD with PROPOSALS5 § 1209.52 Exemption from assessment. (a) The following persons shall be exempt from assessments under this part: (1) A person who produces or imports, on average, 500,000 pounds or less of mushrooms annually shall be exempt from assessments under this part. (2) [Reserved] (3) [Reserved] * * * * * ■ 17. In § 1209.252, redesignate paragraph (a)(2) as paragraph (a)(4), add paragraphs (a)(2) and (3), and revise newly redesignated paragraph (a)(4) to read as follows: § 1209.252 Exemptions and exemption procedures. (a) * * * (2) In addition to the exemption provided for in § 1209.52, a producer who operates under an approved VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 National Organic Program (7 CFR part 205) (NOP) system plan; produces products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (3) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP (7 CFR part 205); (4) To apply for an exemption for organic mushrooms: (i) An eligible mushroom producer shall submit a request for exemption to the Council on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter on or before January 1, as long as the producer continues to be eligible for the exemption. (ii) A producer request for exemption shall include the following: (A) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (B) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (C) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (D) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (E) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (F) Such other information as may be required by the Council, with the approval of the Secretary. (iii) If a producer complies with the requirements of this section, the Council will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Council will notify the applicant of the reason(s) for disapproval within the same timeframe. (iv) An eligible mushroom importer shall submit a request for exemption from assessment on imported certified ‘‘organic’’ or ‘‘100 percent organic’’ mushrooms on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter on or before January 1, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of producers in paragraph (a)(4)(ii) of this section. If the importer complies with the requirements of this section, the Council will grant the exemption and issue a Certificate of Exemption to PO 00000 Frm 00016 Fmt 4701 Sfmt 4702 the importer. If Customs collects the assessment on exempt product that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the Council must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Council for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Council that the importer paid the assessment on exempt organic product. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. (v) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. * * * * * PART 1210—WATERMELON RESEARCH AND PROMOTION PLAN 18. The authority citation for 7 CFR part 1210 continues to read as follows: ■ Authority: 7 U.S.C. 4901–4916 and 7 U.S.C. 7401. 19. In § 1210.516, revise paragraphs (a), (b), (c), (d), (f), and (h) to read as follows: ■ § 1210.516 Exemption for organic watermelons. (a) A producer or handler who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the payment of assessments under this part provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer or handler regardless of whether the agricultural commodity subject to the exemption is produced or handled by a person that E:\FR\FM\16DEP5.SGM 16DEP5 mstockstill on DSK4VPTVN1PROD with PROPOSALS5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules also produces or handles conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer or handler maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501– 6522) (OFPA) and the NOP regulations issued under the OFPA (7 CFR part 205); and (4) Any producer or handler so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (b) To apply for exemption under this section, an eligible producer or handler shall submit a request to the Board on an Organic Exemption Request Form (Form AMS–15) at any time during the year initially, and annually thereafter on or before January 1, for as long as the producer or handler continues to be eligible for the exemption. (c) The request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant produces or handles organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a producer or handler complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer or handler within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. * * * * * (f) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments on those products. Such importer may submit documentation to the Board and request VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ watermelons on an Organic Exemption Request Form (Form AMS– 15) at any time initially, and annually thereafter on or before January 1, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of producers in paragraph (c) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a Certificate of Exemption to the importer. If Customs collects the assessment on exempt product that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the Board must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Board for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Board that the importer paid the assessment on exempt organic product. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. * * * * * (h) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. PART 1212—HONEY PACKERS AND IMPORTERS RESEARCH, PROMOTION, CONSUMER EDUCATION AND INDUSTRY INFORMATION ORDER 20. The authority citation for 7 CFR part 1212 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 7401. 21. In § 1212.53, revise paragraphs (b), (e), and (g) to read as follows: ■ § 1212.53 Exemption from assessment. * * * * * (b) A first handler or importer who operates under an approved National PO 00000 Frm 00017 Fmt 4701 Sfmt 4702 75021 Organic Program (7 CFR part 205) (NOP) organic system plan may be exempt from the payment of assessments under this part provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a first handler or importer regardless of whether the agricultural commodity subject to the exemption is handled or imported by a person that also handles or imports conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The first handler or importer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any first handler or importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (5) Persons eligible for an organic assessment exemption as provided this section may apply for such an exemption by submitting a request to the Board on an Organic Exemption Request Form (Form AMS–15) at any time during the year initially, and annually thereafter on or before January 1, as long as the first handler or importer continues to be eligible for the exemption. (i) A first handler or importer request for exemption shall include the following: (A) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (B) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (C) Certification that the applicant handles or imports organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (D) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (E) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (F) Such other information as may be required by the Board, with the approval of the Secretary. E:\FR\FM\16DEP5.SGM 16DEP5 75022 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules (ii) Upon receipt of an application, the Board shall determine whether an exemption may be granted and issue a Certificate of Exemption to the first handler or importer within 30 calendar days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. It is the responsibility of the first handler or importer to retain a copy of the certificate of exemption. * * * * * (e) Exempt importers shall be eligible for reimbursement of assessments collected by Customs. (1) Importers exempt under paragraph (a) of this section must apply to the Board for reimbursement of any assessment paid. No interest will be paid on the assessment collected by Customs. Requests for reimbursement must be submitted to the Board within 90 days of the last day of the calendar year the honey or honey products were imported. (2) If Customs collects the assessment on exempt product under paragraph (b) of this section that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the Board must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Board for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Board that the importer paid the assessment on exempt organic product. * * * * * (g) Any person who desires an exemption from assessments for a subsequent calendar year shall reapply to the Board for a certificate of exemption. * * * * * PART 1214—CHRISTMAS TREE PROMOTION, RESEARCH, AND INFORMATION ORDER 22. The authority citation for 7 CFR part 1214 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 7401. 23. In § 1214.53, revise paragraph (c) to read as follows: mstockstill on DSK4VPTVN1PROD with PROPOSALS5 ■ § 1214.53 Exemption from and refunds of assessments. * * * * * (c) Organic. (1) A producer who domestically produces Christmas trees under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 from the payment of assessments under this part provided that: (i) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (ii) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (iii) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (iv) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (2) To apply for exemption under this section, an eligible producer shall submit a request to the Board on an Organic Exemption Request Form (Form AMS–15) at any time during the year initially, and annually thereafter on or before the start of the fiscal period, for as long as the producer continues to be eligible for the exemption. (3) A producer request for exemption shall include the following: (i) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (ii) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (iii) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (iv) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent; (v) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (vi) Such other information as may be required by the Board, with the approval of the Secretary. (4) If a producer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) PO 00000 Frm 00018 Fmt 4701 Sfmt 4702 for disapproval within the same timeframe. (5) An importer who imports Christmas trees that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments. Such importer may submit documentation to the Board and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ Christmas trees on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter on or before the beginning of the fiscal period, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of a producer in paragraph (c)(3) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a Certificate of Exemption to the importer within the applicable timeframe. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. (6) If Customs collects the assessment on exempt product under paragraph (c)(5) of this section that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the Board must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Board for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Board that the importer paid the assessment on exempt organic product. (7) The exemption will apply immediately following the issuance of the Certificate of Exemption. PART 1215—POPCORN PROMOTION, RESEARCH, AND CONSUMER INFORMATION 24. The authority citation for 7 CFR part 1215 continues to read as follows: ■ Authority: 7 U.S.C. 7481–7491 and 7 U.S.C. 7401. 25. In § 1215.52, revise paragraph (b) to read as follows: ■ § 1215.52 Exemption from assessment. * * * * * (b) Persons that operate under an approved National Organic Program (7 CFR part 205) (NOP) organic handling system plan may be exempt from the payment of assessments provided that: E:\FR\FM\16DEP5.SGM 16DEP5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a processor regardless of whether the agricultural commodity subject to the exemption is processed by a person that also processes conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The processor maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any processor so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. * * * * * ■ 26. In § 1215.300: ■ a. Revise paragraph (b); ■ b. Redesignate paragraphs (c) through (f) as paragraphs (d) through (g), respectively; ■ c. Add paragraph (c); and ■ d. Revise newly redesignated paragraph (d). The revisions and addition read as follows: § 1215.300 Exemption procedures. mstockstill on DSK4VPTVN1PROD with PROPOSALS5 * * * * * (b) Persons eligible for an organic assessment exemption as provided in § 1215.52(b) may apply for such an exemption by submitting a request to the Board on an Organic Exemption Request Form (Form AMS–15) at any time during the year initially, and annually thereafter on or before January 1, as long as the processor continues to be eligible for the exemption. (c) A processor request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant processes organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDA- VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 accredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) Upon receipt of an application, the Board shall determine whether an exemption may be granted and issue a Certificate of Exemption to the processor within 30 calendar days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. * * * * * PART 1216—PEANUT PROMOTION, RESEARCH, AND INFORMATION ORDER 27. The authority citation for 7 CFR part 1216 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425 and 7 U.S.C. 7401. 28. In § 1216.56, revise paragraphs (a), (b), (c), (d), and (g) to read as follows: ■ § 1216.56 Exemption for organic peanuts. (a) A producer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the payment of assessments under this part provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OPFA (7 CFR part 205); and (4) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (b) In order to apply for this exemption, an eligible peanut producer shall submit a request to the Board on an Organic Exemption Request Form (Form AMS–15) at any time during the PO 00000 Frm 00019 Fmt 4701 Sfmt 4702 75023 year initially, and annually thereafter on or before August 1, for as long as the producer continues to be eligible for the exemption. (c) A producer request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid organic certificate issued under the OFPA and the NOP; (3) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a producer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. * * * * * (g) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. PART 1217—SOFTWOOD LUMBER RESEARCH, PROMOTION, CONSUMER EDUCATION AND INDUSTRY INFORMATION ORDER 29. The authority citation for 7 CFR part 1217 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 7401. 30. In § 1217.53, revise paragraph (d) to read as follows: ■ § 1217.53 Exemption from assessment. * * E:\FR\FM\16DEP5.SGM * 16DEP5 * * mstockstill on DSK4VPTVN1PROD with PROPOSALS5 75024 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules (d) Organic. (1) A domestic manufacturer of softwood lumber products who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic handling system plan may be exempt from the payment of assessments under this part provided that: (i) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (ii) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a manufacturer regardless of whether the agricultural commodity subject to the exemption is manufactured by a person that also manufactures conventional or nonorganic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (iii) The manufacturer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501– 6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (iv) Any manufacturer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (2) To apply for exemption under this section, an eligible manufacturer shall submit a request to the Board on an Organic Exemption Request Form (Form AMS–15) at any time during the year initially, and annually thereafter on or before the start of the fiscal year, for as long as the manufacturer continues to be eligible for the exemption. (3) A manufacturer request for exemption shall include the following: (i) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (ii) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (iii) Certification that the applicant manufactures organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (iv) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (v) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 (vi) Such other information as may be required by the Board, with the approval of the Secretary. (4) If a manufacturer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the manufacturer within 30 calendar days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. (5) An importer who imports softwood lumber that is eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments. Such importer may submit documentation to the Board and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ softwood lumber on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter on or before the beginning of the fiscal year, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of a manufacturer in paragraph (d)(3) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a Certificate of Exemption to the importer within the applicable timeframe. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. (6) If Customs collects the assessment on exempt product under paragraph (d)(5) of this section that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the Board must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Board for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Board that the importer paid the assessment on exempt organic product. (7) The exemption will apply immediately following the issuance of a Certificate of Exemption. PART 1218—BLUEBERRY PROMOTION, RESEARCH, AND INFORMATION ORDER 31. The authority citation for 7 CFR part 1218 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425 and 7 U.S.C. 7401. PO 00000 Frm 00020 Fmt 4701 Sfmt 4702 32. In § 1218.53: a. Revise paragraphs (c) and (d); b. Redesignate paragraphs (e) through (k) as paragraphs (g) through (m), respectively; ■ c. Add paragraphs (e) and (f); and ■ d. Revise newly redesignated paragraphs (g), (i), and (k). The revisions and addition read as follows: ■ ■ ■ § 1218.53 Exemption procedures. * * * * * (c) A producer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the payment of assessments under this part provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (d) To apply for exemption under this section, a producer shall submit a request to the Council on an Organic Exemption Request Form (Form AMS– 15) at any time during the year initially, and annually thereafter on or before January 1, for as long as the producer continues to be eligible for the exemption. (e) A producer request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; E:\FR\FM\16DEP5.SGM 16DEP5 mstockstill on DSK4VPTVN1PROD with PROPOSALS5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Council, with the approval of the Secretary. (f) If a producer complies with the requirements of this section, the Council will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Council will notify the applicant of the reason(s) for disapproval within the same timeframe. (g) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments on those products. Such importer may submit documentation to the Council and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ blueberries on an Organic Exemption Request Form (Form AMS– 15) at any time initially, and annually thereafter on or before January 1, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of producers in paragraph (e) of this section. If the importer complies with the requirements of this section, the Council will grant the exemption and issue a Certificate of Exemption to the importer. If Customs and Border Protection (Customs) collects the assessment on exempt product that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the Council must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Council for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Council that the importer paid the assessment on exempt organic product. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. * * * * * (i) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. * * * * * (k) Importers who are exempt from payment of assessments shall be eligible for reimbursement of assessments collected by Customs and may apply to the Council for a reimbursement of such assessments paid. No interest will be paid on assessments collected by Customs. Requests for reimbursement shall be submitted to the Council within 90 days of the last day of the year the blueberries were actually imported. * * * * * PART 1219—HASS AVOCADO PROMOTION, RESEARCH, AND INFORMATION 33. The authority citation for 7 CFR part 1219 continues to read as follows: ■ Authority: 7 U.S.C. 7801–7813 and 7 U.S.C. 7401. 34. In § 1219.202, revise paragraphs (a), (b), (c), (d), (f), and (h) to read as follows: ■ § 1219.202 Exemption for organic Hass avocados. (a) A producer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the payment of assessments under this part provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any producer so exempted shall continue to be obligated to pay assessments under this part that are PO 00000 Frm 00021 Fmt 4701 Sfmt 4702 75025 associated with any agricultural products that do not qualify for an exemption under this section. (b) To apply for exemption under this section, an eligible Hass avocado producer shall submit a request to the Board on an Organic Exemption Request Form (Form AMS–15) at any time during the year initially, and annually thereafter on or before November 1, for as long as the producer continues to be eligible for the exemption. (c) A producer request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a producer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. * * * * * (f) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments on those products. Such importer may submit documentation to the Board and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ Hass avocados on an Organic Exemption Request Form (Form AMS– 15) at any time initially, and annually thereafter on or before November 1, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of producers in paragraph (c) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a E:\FR\FM\16DEP5.SGM 16DEP5 75026 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules Certificate of Exemption to the importer. If Customs collects the assessment on exempt product that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the Board must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Board for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Board that the importer paid the assessment on exempt organic product. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. * * * * * (h) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. PART 1220—SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION 35. The authority citation for 7 CFR part 1220 continues to read as follows: ■ Authority: 7 U.S.C. 6301–6311 and 7 U.S.C. 7401. 36. In § 1220.302, revise paragraphs (a), (b), (c), (d), and (g) to read as follows: ■ mstockstill on DSK4VPTVN1PROD with PROPOSALS5 § 1220.302 Exemption. (a) A producer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the payment of assessments under this part provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (b) To apply for an exemption under this section, the producer shall submit a request to the Board on an Organic Exemption Request Form (Form AMS– 15) at any time during the year initially, and annually thereafter on or before January 1, for as long as the producer continues to be eligible for the exemption. (c) A producer request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a producer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. * * * * * (g) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated PO 00000 Frm 00022 Fmt 4701 Sfmt 4702 use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. PART 1221—SORGHUM PROMOTION, RESEARCH, AND INFORMATION ORDER 37. The authority citation for 7 CFR part 1221 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425 and 7 U.S.C. 7401. 38. In § 1221.117, revise paragraphs (g), (h), (i), (j), and (m) to read as follows: ■ § 1221.117 Exemptions. * * * * * (g) A producer or importer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production or handling system plan may be exempt from the payment of assessments under this part provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer or importer regardless of whether the agricultural commodity subject to the exemption is produced or imported by a person that also produces or imports conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer or importer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any producer or importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (h) To apply for an exemption under this section, the applicant shall submit a request to the Board on an Organic Exemption Request Form (Form AMS– 15) at any time during the year initially, and annually thereafter on or before January 1, for as long as the producer or importer continues to be eligible for the exemption. (i) A producer or importer request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and E:\FR\FM\16DEP5.SGM 16DEP5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant produces or imports organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (j) If the applicant complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer or importer within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. * * * * * (m) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. PART 1222—PAPER AND PAPERBASED PACKAGING PROMOTION, RESEARCH AND INFORMATION ORDER 39. The authority citation for 7 CFR part 1222 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 7401. 40. In § 1222.53, revise paragraph (b) to read as follows: mstockstill on DSK4VPTVN1PROD with PROPOSALS5 ■ § 1222.53 Exemption from assessment. * * * * * (b) Organic. (1) A manufacturer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic handling system plan may be exempt from the payment of assessments under this part provided that: VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 (i) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (ii) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a manufacturer regardless of whether the agricultural commodity subject to the exemption is manufactured by a person that also manufactures conventional or nonorganic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (iii) The manufacturer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501– 6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (iv) Any manufacturer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (2) To apply for exemption under this section, an eligible manufacturer shall submit a request to the Board on an Organic Exemption Request Form (Form AMS–15) at any time during the year initially, and annually thereafter on or before the start of the fiscal year, as long as the manufacturer continues to be eligible for the exemption. (3) A manufacturer request for exemption shall include the following: (i) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (ii) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (iii) Certification that the applicant manufactures organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (iv) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (v) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (vi) Such other information as may be required by the Board, with the approval of the Secretary. (4) If a manufacturer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the manufacturer within 30 calendar days. If the application is disapproved, the Board will notify the PO 00000 Frm 00023 Fmt 4701 Sfmt 4702 75027 applicant of the reason(s) for disapproval within the same timeframe. (5) An importer who imports paper and paper-based packaging that is eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments. Such importer may submit documentation to the Board and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ paper and paper-based packaging on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter on or before the beginning of the fiscal year, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of a manufacturer in paragraph (b)(3) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a Certificate of Exemption to the importer within the applicable timeframe. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. (6) If Customs collects the assessment on exempt product under paragraph (b)(5) of this section that is identified as ‘‘organic’’ by a number in the Harmonized Tariff Schedule, the Board must reimburse the exempt importer the assessments paid upon receipt of such assessments from Customs. For all other exempt organic product for which Customs collects the assessment, the importer may apply to the Board for a reimbursement of assessments paid, and the importer must submit satisfactory proof to the Board that the importer paid the assessment on exempt organic product. (7) The exemption will apply immediately following the issuance of a Certificate of Exemption. PART 1230—PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION 41. The authority citation for 7 CFR part 1230 continues to read as follows: ■ Authority: 7 U.S.C. 4801–4819 and 7 U.S.C. 7401. 42. In § 1230.102, revise paragraphs (a), (b), (c), (d), (g), and (i) and add paragraph (j) to read as follows: ■ § 1230.102 Exemption. (a) A producer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the E:\FR\FM\16DEP5.SGM 16DEP5 mstockstill on DSK4VPTVN1PROD with PROPOSALS5 75028 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules payment of assessments under this part provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (b) To apply for exemption under this section, a producer shall submit a request to the Board on an Organic Exemption Request Form (Form AMS– 15) at any time during the year initially, and annually thereafter on or before January 1, for as long as the producer continues to be eligible for the exemption. (c) A producer request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a producer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Board VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 will notify the applicant of the reason(s) for disapproval within the same timeframe. * * * * * (g) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments on those products. Such importer may submit documentation to the Board and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ porcine animals or pork and pork products on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter on or before January 1, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of producers in paragraph (c) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a Certificate of Exemption to the importer. The Board will also issue the importer an alphanumeric number valid for 1 year from the date of issue. This alphanumeric number should be entered by the importer on the Customs entry documentation. Any line item entry of ‘‘organic’’ or ‘‘100 percent organic’’ porcine animals or pork and pork products bearing this alphanumeric number assigned by the Board will not be subject to assessments. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. * * * * * (i) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. (j) An importer who is exempt from payment of assessments under paragraph (g) of this section shall be eligible for reimbursement of assessments collected by Customs on certified ‘‘organic’’ or ‘‘100 percent organic’’ porcine animals or pork and pork products and may apply to the Secretary for a reimbursement. The PO 00000 Frm 00024 Fmt 4701 Sfmt 4702 importer would be required to submit satisfactory proof to the Secretary that the importer paid the assessment on exempt organic products. PART 1250—EGG RESEARCH AND PROMOTION 43. The authority citation for 7 CFR part 1250 continues to read as follows: ■ Authority: 7 U.S.C. 2701–2718 and 7 U.S.C. 7401. 44. In § 1250.530, revise paragraph (b) to read as follows: ■ § 1250.530 Certification of exempt producers. * * * * * (b) Organic Production. (1) A producer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the payment of assessments under this part provided that: (i) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (ii) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (iii) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (iv) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (2) To apply for exemption under this section, a producer shall submit a request to the Board on an Organic Exemption Request Form (Form AMS– 15) at any time during the year initially, and annually thereafter on or before January 1, for as long the producer continues to be eligible for the exemption. (3) A producer request for exemption shall include the following: (i) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (ii) Certification that the applicant maintains a valid certificate of organic E:\FR\FM\16DEP5.SGM 16DEP5 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules operation issued under the OFPA and the NOP; (iii) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (iv) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (v) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (vi) Such other information as may be required by the Board, with the approval of the Secretary. (4) If a producer complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. (5) The producer shall provide a copy of the Certificate of Exemption to each handler to whom the producer sells eggs. The handler shall maintain records showing the exempt producer’s name and address and the exemption number assigned by the Board. (6) The exemption will apply at the first reporting period following the issuance of the Certificate of Exemption. (7) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. * * * * * PART 1260—BEEF PROMOTION AND RESEARCH 45. The authority citation for 7 CFR part 1260 continues to read as follows: mstockstill on DSK4VPTVN1PROD with PROPOSALS5 ■ Authority: 7 U.S.C. 2901–2911 and 7 U.S.C. 7401. 46. In § 1260.302, revise paragraphs (a), (b), (c), (d), (g), and (i) and add paragraph (j) to read as follows: ■ § 1260.302 Organic exemption. (a) A producer who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production system plan may be exempt from the VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 payment of assessments under this part provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer regardless of whether the agricultural commodity subject to the exemption is produced by a person that also produces conventional or non-organic agricultural products of the same agricultural commodity as that for which the exemption is claimed; (3) The producer maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any producer so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (b) To apply for exemption under this section, a producer shall submit a request to the Board or QSBC on an Organic Exemption Request Form (Form AMS–15) at any time during the year initially, and annually thereafter on or before January 1, for as long as the producer continues to be eligible for the exemption. (c) A producer request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant produces organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDAaccredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a producer complies with the requirements of this section, the Board or QSBC will grant an assessment exemption and issue a Certificate of Exemption to the producer within 30 days. If the application is disapproved, PO 00000 Frm 00025 Fmt 4701 Sfmt 4702 75029 the Board or QSBC will notify the applicant of the reason(s) for disapproval within the same timeframe. * * * * * (g) An importer who imports products that are eligible to be labeled as ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP may be exempt from the payment of assessments on those products. Such importer may submit documentation to the Board and request an exemption from assessment on certified ‘‘organic’’ or ‘‘100 percent organic’’ cattle or beef and beef products on an Organic Exemption Request Form (Form AMS–15) at any time initially, and annually thereafter on or before January 1, as long as the importer continues to be eligible for the exemption. This documentation shall include the same information required of producers in paragraph (c) of this section. If the importer complies with the requirements of this section, the Board will grant the exemption and issue a Certificate of Exemption to the importer. The Board will also issue the importer an alphanumeric number valid for 1 year from the date of issue. This alphanumeric number should be entered by the importer on the Customs entry documentation. Any line item entry of ‘‘organic’’ or ‘‘100 percent organic’’ cattle or beef and beef products bearing this alphanumeric number assigned by the Board will not be subject to assessments. Any importer so exempted shall continue to be obligated to pay assessments under this part that are associated with any imported agricultural products that do not qualify for an exemption under this section. * * * * * (i) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. (j) An importer who is exempt from payment of assessments under paragraph (g) of this section shall be eligible for reimbursement of assessments collected by Customs on certified ‘‘organic’’ or ‘‘100 percent organic’’ cattle or beef and beef products and may apply to the Secretary for a reimbursement. The importer would be required to submit satisfactory proof to E:\FR\FM\16DEP5.SGM 16DEP5 75030 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules the Secretary that the importer paid the assessment on exempt organic products. PART 1280—LAMB PROMOTION, RESEARCH, AND INFORMATION ORDER 47. The authority citation for 7 CFR part 1280 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425 and 7 U.S.C. 7401. 48. In § 1280.406, revise paragraphs (a), (b), (c), (d), and (h) to read as follows: ■ § 1280.406 Exemption. mstockstill on DSK4VPTVN1PROD with PROPOSALS5 (a) A producer, seed stock producer, feeder, handler, or exporter who operates under an approved National Organic Program (7 CFR part 205) (NOP) organic production or handling system plan may be exempt from the payment of assessments under this part provided that: (1) Only agricultural products certified as ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) are eligible for exemption; (2) The exemption shall apply to all certified ‘‘organic’’ or ‘‘100 percent organic’’ (as defined in the NOP) products of a producer, handler, or exporter regardless of whether the agricultural commodity subject to the exemption is produced, handled, or exported by a person that also produces, handles, or exports conventional or nonorganic agricultural products of the same agricultural commodity as that for which the exemption is claimed; VerDate Sep<11>2014 20:55 Dec 15, 2014 Jkt 235001 (3) The producer, handler, or exporter maintains a valid certificate of organic operation as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501–6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part 205); and (4) Any person so exempted shall continue to be obligated to pay assessments under this part that are associated with any agricultural products that do not qualify for an exemption under this section. (b) To apply for exemption under this section, the person shall submit a request to the Board on an Organic Exemption Request Form (Form AMS– 15) at any time during the year initially, and annually thereafter on or before January 1, for as long as the producer continues to be eligible for the exemption. (c) The request for exemption shall include the following: (1) The applicant’s full name, company name, address, telephone and fax numbers, and email address (optional); (2) Certification that the applicant maintains a valid certificate of organic operation issued under the OFPA and the NOP; (3) Certification that the applicant produces, handles, or exports organic products eligible to be labeled ‘‘organic’’ or ‘‘100 percent organic’’ under the NOP; (4) A requirement that the applicant attach a copy of their certificate of organic operation issued by a USDA- PO 00000 Frm 00026 Fmt 4701 Sfmt 9990 accredited certifying agent under the OFPA and the NOP; (5) Certification, as evidenced by signature and date, that all information provided by the applicant is true; and (6) Such other information as may be required by the Board, with the approval of the Secretary. (d) If a person complies with the requirements of this section, the Board will grant an assessment exemption and issue a Certificate of Exemption to the applicant within 30 days. If the application is disapproved, the Board will notify the applicant of the reason(s) for disapproval within the same timeframe. * * * * * (h) Agricultural commodities produced and marketed under an organic system plan, as described in 7 CFR 205.201, but not sold, labeled, or represented as organic, shall not disqualify a producer from exemption under this section. Reasons for conventional sales include lack of demand for organic products, isolated use of antibiotics for humane purposes, chemical or pesticide use as the result of State or emergency spray programs, and crops from a buffer area as described in 7 CFR part 205, provided all other criteria are met. Dated: December 10, 2014. Rex A. Barnes, Associate Administrator, Agricultural Marketing Service. [FR Doc. 2014–29280 Filed 12–15–14; 8:45 am] BILLING CODE 3410–02–P E:\FR\FM\16DEP5.SGM 16DEP5

Agencies

[Federal Register Volume 79, Number 241 (Tuesday, December 16, 2014)]
[Proposed Rules]
[Pages 75005-75030]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-29280]

[[Page 75005]]

Vol. 79

Tuesday,

No. 241

December 16, 2014

Part VI

Department of Agriculture

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Agicultural Marketing Service

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7 CFR Parts 900, 1150, 1160, et al.

Exemption of Organic Products from Assessment Under a Commodity
Promotion Law; Proposed Rule

Federal Register / Vol. 79 , No. 241 / Tuesday, December 16, 2014 /
Proposed Rules

[[Page 75006]]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 900, 1150, 1160, 1205, 1206, 1207, 1208, 1209, 1210,
1212, 1214, 1215, 1216, 1217, 1218, 1219, 1220, 1221, 1222, 1230,
1250, 1260, and 1280

[Document Number AMS-FV-14-0032]

Exemption of Organic Products From Assessment Under a Commodity
Promotion Law

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal would modify the organic assessment exemption
regulations under 23 Federal marketing orders and 22 research and
promotion programs. The current regulations would be amended to allow
persons that produce, handle, market, or import certified organic
products to be exempt from paying assessments associated with commodity
promotion activities, including paid advertising, conducted under a
commodity promotion program administered by the Agricultural Marketing
Service (AMS). The exemption would cover all ``organic'' and ``100
percent organic'' products certified under the National Organic Program
regardless of whether the person requesting the exemption also
produces, handles, markets, or imports conventional or nonorganic
products. Currently, only persons that exclusively produce and market
products certified as 100 percent organic are eligible for an exemption
from assessments under commodity promotion programs. The authority for
this proposal is in section 10004 of the Agricultural Act of 2014.

DATES: Comments must be received by January 15, 2015.

ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments must be sent to the Docket Clerk,
Marketing Order and Agreement Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or Internet: https://www.regulations.gov. All comments should reference the document number
and the date and page number of this issue of the Federal Register.
Comments will be included in the record and made available for public
inspection in the Office of the Docket Clerk during regular business
hours, or can be viewed at: https://www.regulations.gov. Please be
advised that the identity of the individuals or entities submitting the
comments will be made public on the Internet at the address provided
above.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing
Specialist, or Michelle Sharrow, Branch Chief, Marketing Order and
Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237;
Telephone: (202) 720-2491, Fax: (202) 720-8938; or email:
Barry.Broadbent@ams.usda.gov, or Michelle.Sharrow@ams.usda.gov.

SUPPLEMENTARY INFORMATION: The authority for this proposed rule is
specified in section 10004 of the Agricultural Act of 2014 (2014 Farm
Bill) (Pub. L. 113-79). On February 7, 2014, the 2014 Farm Bill amended
Section 501 of the Federal Agriculture Improvement and Reform Act of
1996 (FAIR Act) (7 U.S.C. 7401), which established certain provisions
for generic commodity promotion programs created under the various
commodity promotion laws. Section 501 of the FAIR Act was previously
amended in May 2002, by Section 10607 of the Farm Security and Rural
Investment Act (2002 Farm Bill) (Pub. L. 107-171) to exempt persons
that produced and marketed solely 100 percent organic products, and who
did not otherwise produce or market any conventional or nonorganic
products, from the payment of an assessment for commodity promotion
activities under a commodity promotion law.
Section 10004 of the 2014 Farm Bill subsequently expanded the
organic assessment exemption to apply to any agricultural commodity
that is certified as ``organic'' or ``100 percent organic'' as defined
by the National Organic Program (NOP) (7 CFR part 205). The amendment
further requires the Secretary of Agriculture to promulgate regulations
concerning the eligibility and compliance procedures necessary to
implement the exemption. Consistent with that provision of the 2014
Farm Bill, the proposed exemption covers all certified ``organic'' or
``100 percent organic'' products of a producer, handler, first handler,
marketer, or importer regardless of whether the agricultural commodity
subject to the exemption is produced, handled, marketed, or imported by
a person that also produces, handles, markets, or imports conventional
or nonorganic agricultural products, including conventional or
nonorganic agricultural products of the same agricultural commodity as
that for which the exemption is claimed.

Executive Order 12866, Executive Order 13563, and Executive Order 13175

The Department of Agriculture (USDA) is issuing this proposed rule
with regard to marketing orders in conformance with Executive Orders
12866, 13563, and 13175.
With regard to research and promotion programs, Executive Orders
12866 and 13563 direct agencies to assess all costs and benefits of
available regulatory alternatives and, if regulation is necessary, to
select regulatory approaches that maximize net benefits (including
potential economic, environmental, public health and safety effects,
distributive impacts, and equity). Executive Order 13563 emphasizes the
importance of quantifying both costs and benefits, reducing costs,
harmonizing rules, and promoting flexibility. This action has been
designated as a ``non-significant regulatory action'' under section
3(f) of Executive Order 12866. Accordingly, the Office of Management
and Budget has waived the review process.
Additionally, with regard to research and promotion programs, this
action has been reviewed in accordance with the requirements of
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments. The review reveals that this regulation would not have
substantial and direct effects on Tribal governments and would not have
significant Tribal implications.

Executive Order 12988

Agricultural Marketing Agreement Act of 1937

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.

Beef Promotion and Research Act of 1985

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
Section 11 of the Beef Promotion and Research Act of 1985 (7 U.S.C.
2910) provides that it shall not preempt or supersede any other program
relating to beef promotion organized and operated under the laws of the
United States or any State.

Commodity Promotion, Research, and Information Act of 1996

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
Section 524 of the Commodity Promotion, Research,

[[Page 75007]]

and Information Act of 1996 (7 U.S.C. 7423) provides that it shall not
affect or preempt any other Federal or State law authorizing promotion
or research relating to an agricultural commodity.

Cotton Research and Promotion Act of 1966

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. The proposed rule is not intended to have
retroactive effect.

Dairy Production Stabilization Act of 1983

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. The proposed rule is not intended to have
retroactive effect. Section 1221 of the Dairy Production Stabilization
Act of 1983 provides that nothing in this Act may be construed to
preempt or supersede any other program relating to dairy product
promotion organized and operated under the laws of the United States or
any State.

Egg Research and Consumer Information Act of 1974

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. The proposed rule is not intended to have
retroactive effect.

Fluid Milk Promotion Act of 1990

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. The proposed rule is not intended to have
retroactive effect.

Hass Avocado Promotion, Research and Information Act of 2000

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
Section 1212(c) of the Hass Avocado Promotion, Research and Information
Act of 2000 (7 U.S.C. 7811) provides that nothing in this Act may be
construed to preempt or supersede any program relating to Hass avocado
promotion, research, industry information, and consumer information
organized and operated under the laws of the United States or of a
State.

Mushroom Promotion, Research, and Consumer Information Act of 1990

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
Section 1930 of the Mushroom Promotion, Research, and Consumer
Information Act of 1990 (7 U.S.C. 6109) provides that nothing in this
Act may be construed to preempt or supersede any other program relating
to mushroom promotion, research, consumer information or industry
information organized and operated under the laws of the United States
or any State.

Popcorn Promotion, Research, and Consumer Information Act of 1996

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
Section 580 of the Popcorn Promotion, Research, and Consumer
Information Act (7 U.S.C. 7489) provides that nothing in this Act
preempts or supersedes any other program relating to popcorn promotion
organized and operated under the laws of the United States or any
State.

Potato Research and Promotion Act of 1971

This proposal has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect.

Pork Promotion, Research and Consumer Information Act of 1985

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
Section 1628 of the Pork Promotion, Research, and Consumer Information
Act of 1985 (7 U.S.C. 4817) states that the statute is intended to
occupy the field of promotion and consumer education involving pork and
pork products and of obtaining funds thereof from pork producers. The
regulation of such activity (other than a regulation or requirement
relating to a matter of public health or the provision of State or
local funds for such activity) that is in addition to or different from
the Pork Act may not be imposed by a State.

Soybean Promotion, Research, and Consumer Information Act

This proposal has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect.
Additionally, section 1974 of the Soybean Promotion, Research, and
Consumer Information Act (7 U.S.C. 6309) provides, with certain
exceptions, that nothing in the Soybean Act may be construed to preempt
or supersede any other program relating to soybean promotion, research,
consumer information, or industry information organized under the laws
of the United States or any State. One exception in the Soybean Act
concerns assessments collected by Qualified State Soybean Boards
(QSSBs). The exception provides that, to ensure adequate funding of the
operations of QSSBs under the Soybean Act, no State law or regulation
may limit or have the effect of limiting the full amount of assessments
that a QSSB in that State may collect, and which is authorized to be
credited under the Soybean Act. Another exception concerns certain
referenda conducted during specified periods by a State relating to the
continuation of a QSSB or State soybean assessment.

Watermelon Research and Promotion Act

This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
This proposal is issued under the 23 marketing orders and the 22
research and promotion programs established under the following acts:
Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601-674) (AMAA);
Beef Promotion and Research Act of 1985 (7 U.S.C. 2901-2911); Commodity
Promotion, Research, and Information Act of 1996 (7 U.S.C. 7411-7425);
Cotton Research and Promotion Act of 1966 (7 U.S.C. 2101-2118); Dairy
Production Stabilization Act of 1983 (7 U.S.C. 4501-4514); Egg Research
and Consumer Information Act of 1974 (7 U.S.C. 2701-2718); Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6401-6417); Hass Avocado Promotion,
Research, and Information Act of 2000 (7 U.S.C. 7801-7813); Mushroom
Promotion, Research, and Consumer Information Act of 1990 (7 U.S.C.
6101-6112); Popcorn Promotion, Research, and Consumer Information Act
of 1996 (7 U.S.C. 7481-7491); Pork Promotion, Research, and Consumer
Information Act of 1985 (7 U.S.C. 4801-4819); Potato Research and
Promotion Act of 1971 (7 U.S.C. 2611-2627); Soybean Promotion,
Research, and Consumer Information Act (7 U.S.C. 6301-6311); and
Watermelon Research and Promotion Act (7 U.S.C. 4901-4916). These acts
are collectively referred to as ``commodity promotion laws.''
The preceding acts provide that administrative proceedings must be
exhausted before parties may file suit in court. Under those acts, any
person subject to an order may file a petition with the Secretary of
Agriculture stating that the order, any provision of the order, or any
obligation imposed in connection with the order is not in accordance
with law and request a modification of the order or to be exempted
therefrom. The petitioner is afforded the opportunity for a hearing on
the petition. After the hearing, the Secretary will make a ruling on
the petition. The acts provide that the district courts of the United
States in any district in which the person is an

[[Page 75008]]

inhabitant, or has his principal place of business, has the
jurisdiction to review the Secretary's rule, provided a complaint is
filed within 20 days from the date of the entry of the ruling. There
are no administrative proceedings that must be exhausted prior to any
judicial challenge to the provision of the Beef Promotion and Research
Act of 1985.

Proposed Rule

USDA is proposing revisions to the general regulations affecting
the 23 marketing order programs established under the AMAA. In
addition, USDA is proposing similar amendments to the orders and/or
rules and regulations of the 22 research and promotion programs. USDA
is proposing the termination of existing provisions in Sec. 1209.52 of
the mushroom research and promotion order that are not consistent with
proposed amendments to the order's organic assessment exemption
provisions contained in Sec. 1209.252. The proposed termination of
Sec. 1209.52(a)(2) and (a)(3) is authorized by Sec. 1209.71(a) of the
order. While the existing organic exemption provisions would terminate
in Sec. 1209.52 of the order, a revised organic exemption provision is
proposed in section Sec. 1209.252(a)(2) of the regulations.
Consistent with the provisions of the 2014 Farm Bill, the proposed
modifications would amend current regulatory provisions that exempt
organic producers, handlers, first handlers, marketers, and importers
from the payment of promotion program assessments used to fund
commodity promotion activities, including paid advertising, under a
commodity promotion law.

Marketing Order Programs

The FAIR Act organic exemption amendment, as enacted by the 2014
Farm Bill, covers 23 marketing order programs established under the
AMAA (Florida citrus--7 CFR part 905; Texas citrus--7 CFR part 906;
Florida avocados--7 CFR part 915; Washington apricots--7 CFR part 922;
Washington sweet cherries--7 CFR part 923; Southeastern California
grapes--7 CFR part 925; Oregon/Washington pears--7 CFR part 927;
Cranberries grown in the States of Massachusetts, et al.--7 CFR part
929; Tart cherries grown in the States of Michigan, et al.--7 CFR part
930; California olives--7 CFR part 932; Colorado potatoes--7 CFR part
948; Georgia Vidalia onions--7 CFR part 955; Washington/Oregon Walla
Walla onions--7 CFR part 956; Idaho-Eastern Oregon onions--7 CFR part
958; Texas onions--7 CFR part 959; Florida tomatoes--7 CFR part 966;
California almonds--7 CFR part 981; Oregon-Washington hazelnuts--7 CFR
part 982; California walnuts--7 CFR part 984; Far West spearmint oil--7
CFR part 985; California dates--7 CFR part 987; California raisins--7
CFR part 989; and California dried prunes--7 CFR part 993).
Federal marketing orders are locally administered by committees
made up of producers and/or handlers, and often members of the public.
Marketing order regulations, initiated by industry and enforced by
USDA, bind the entire industry in the geographical area regulated once
they are approved by the Secretary of Agriculture. Marketing orders
employ one or more of the following authorities: (1) Maintain the high
quality of produce available to the market; (2) standardize packages
and containers; (3) regulate the flow of product to market; (4)
establish reserve pools for storable commodities; and (5) authorize
production research, marketing research and development, and
advertising. Each unique marketing order helps to promote orderly
marketing for the specific commodity and region covered by the
regulation.
The 23 specific marketing order programs listed above allow for
market promotion activities designed to assist, improve, or promote the
marketing, distribution, or consumption of the commodity covered under
each specific marketing order. Some of these programs also authorize
market promotion in the form of paid advertising. Promotion activities,
including paid advertising, are paid for by assessments levied on
handlers regulated under the various marketing orders.
Rules of practice and regulations governing all marketing orders
established under the AMAA are contained in 7 CFR part 900 General
Regulations. Section 900.700 specifies the criteria for identifying
persons eligible to obtain an assessment exemption for marketing
promotion activities, including paid advertising; procedures for
persons to apply for an exemption; procedures for calculating the
assessment exemption; and other procedural details pertaining to the 23
marketing order programs that currently engage in, or have the
authority for, marketing promotion, including paid advertising.
Currently under those provisions, only handlers that exclusively
handle or market products that are eligible to be labeled ``100 percent
organic'' are exempt from the portion of a marketing order assessment
applicable to an order's marketing promotion activities, including paid
advertising. As such, organic handlers who handle or market any
quantity of conventional or nonorganic products in addition to their
organic products are not currently able to claim an assessment
exemption on any of the products they handle. The 2014 Farm Bill
expanded the organic exemption in the FAIR Act to allow all organic
handlers to apply for an exemption from assessments on products
certified as ``organic'' or ``100 percent organic,'' regardless of
whether the handler also handles or markets conventional or nonorganic
products (hereafter referred to as a ``split operation'').
This proposal would modify the organic assessment exemption
eligibility criteria contained in Sec. 900.700. The requirements
contained in that section would be revised to allow organic operations
that are split operations to apply for and receive an assessment
exemption on their organic products, whereas such types of operations
are explicitly precluded from the organic assessment exemption under
the current language. More specifically, the eligibility provisions
contained in Sec. 900.700(b) would be modified to include certified
organic handlers that maintain split operations. The section would also
be amended to provide that exempt handlers must continue to pay
assessments associated with any agricultural products that do not
qualify for an exemption under that section.
Handlers who wish to claim the assessment exemption on their
organic products would continue to be required to submit an application
to the marketing order board or committee, and subsequently be approved
by that body, to qualify for the organic exemption. However, as a
result of the revised eligibility requirements as proposed herein, some
of the information collection previously necessary for the board or
committee to administer the organic assessment exemption would no
longer be required moving forward. As such, Sec. 900.700(c) would be
modified to require less documentation from the handler with regards to
the type and scope of their operation when they apply for an organic
assessment exemption.

Research and Promotion Programs

The FAIR Act organic exemption amendment contained in the 2014 Farm
Bill also covers 22 research and promotion programs established under
either freestanding legislation (beef, cotton, dairy, eggs, fluid milk,
Hass avocados, mushrooms, popcorn, pork, potatoes, soybeans, and
watermelons) or the Commodity Promotion, Research, and Information Act
of 1996

[[Page 75009]]

(blueberries, Christmas trees, honey, lamb, mangoes, paper and paper-
based products, peanuts, processed raspberries, softwood lumber, and
sorghum).
Wholly funded and operated by industry, the research and promotion
programs are charged with creating, maintaining, and expanding markets
for the agricultural commodities they represent. While these programs
are overseen by AMS, including review of all financial budgets,
marketing plans, and research projects, they are governed by boards and
councils made up of industry participants. Producers, handlers,
processors, importers, and/or others in the marketing chain pay
assessments to the representative boards and councils to fund each
program's activities. Industries voluntarily request the formation of
these programs, which allows them to establish, finance, and execute
coordinated programs of research, producer and consumer education, and
generic commodity promotion to improve, maintain, and develop markets
for their respective commodities.
Under this proposal, the eligibility criteria for obtaining an
organic assessment exemption, as contained in each of the research and
promotion orders, plans, and/or regulations, would be revised. The
requirements for such an exemption would be modified to allow split
organic operations to apply for and receive an assessment exemption on
their organic products, whereas such types of operations are explicitly
precluded from the assessment exemption under the current provisions in
each program. In addition, language would be added to provide that
exempt producers, handlers, marketers, or importers must continue to
pay any assessments associated with any agricultural products that do
not qualify for an exemption. Persons who wish to claim the assessment
exemption on their organic products would continue to be required to
submit an application to the board or council, and subsequently be
approved, to qualify for the organic exemption. However, as a result of
the revised eligibility requirements proposed herein, some of the
information collection that is currently necessary for the board or
council to administer the organic assessment exemption would no longer
be required moving forward. As such, the section of each order, plan,
or regulation that specifies the information collection requirements
for the organic assessment exemption would be modified to require less
documentation from the applicant with regards to the type and scope of
their operation.

Who is eligible for exemption under a marketing order?

This proposed rule would modify the eligibility requirements for
organic assessment exemptions that are currently in place for marketing
order programs. Under this proposed action, persons who are subject to
an assessment under a designated marketing order, who maintain a valid
organic certificate, and who handle any assessable agricultural
commodities that are certified as ``organic'' or ``100 percent
organic'' (as defined in the NOP) would be eligible for the organic
assessment exemption under amended requirements in part 900.
All of the 23 marketing orders impacted by this proposed rule
assess only handlers (i.e., persons that handle the regulated
commodity) to fund the operations of the respective programs. Under the
current organic assessment exemption regulation, which was promulgated
as a result of the provisions in the 2002 Farm Bill that amended the
FAIR Act, to qualify for an exemption from a commodity promotion
assessment, a person--meaning an individual, group of individuals,
corporation, association, cooperative, or other business entity--must
``produce and market'' solely 100 percent organic products, and must
not also produce or market any conventional or nonorganic products. For
the purpose of that regulation, ``produce'' was defined as to grow or
produce food, feed, livestock, or fiber or to receive food, feed,
livestock, or fiber and alter that product by means of feeding,
slaughtering, or processing. USDA determined that handlers, processors
and producers acting as handlers, and importers were also eligible for
exemption if any of their activities met the definition of ``produce''
as outlined above. Additionally, the regulation only provided for
granting organic assessment exemptions to persons that handle domestic
commodities regulated under marketing orders and not importers, as
importers regulated under section 608e of the AMAA (7 U.S.C. 608e-
1)(section 8e) do not pay assessments. Therefore, importers are not
eligible for an organic assessment exemption under part 900.
The 2002 Farm Bill amended the FAIR Act to make organic assessment
exemptions available to any person that ``produces and markets''
organic products, should they also conform to certain other criteria.
This proposed rule would incorporate the broadened eligibility criteria
established by the 2014 Farm Bill amendment to the FAIR Act into the
regulations. Importers of commodities covered by section 8e of the
Agricultural Marketing Agreement Act of 1937 would remain ineligible
for an exemption as importers do not pay assessments under marketing
order programs.
In addition, the FAIR Act amendment also expanded eligibility to
cover split organic operations. The requirement that operations be
``solely'' 100 percent organic was replaced with the requirement that
operations maintain a ``valid organic certificate'' issued under the
Organic Foods Production Act of 1990 (7 U.S.C. 6501-6522) (OFPA) and
the NOP. Handlers who handle certified ``organic'' and/or ``100 percent
organic'' products would qualify for an organic assessment exemption
regardless of whether the commodity subject to the exemption is handled
by a person that also handles conventional or nonorganic agricultural
products of the same commodity as that for which the exemption is
claimed.

Examples

For all examples, assume that the person that handles or markets a
commodity regulated under a marketing order is otherwise obligated to
pay assessments under that order and that 60 percent of the marketing
order's budgeted expenses are attributed to market promotion
activities, including paid advertising:
A handler who handles all of their volume as certified
``organic'' or ``100 percent organic'' product (received from certified
organic producers), and maintains a valid organic certificate under the
NOP, would be eligible for an organic assessment exemption. The handler
would be exempt from 100 percent of the portion of the marketing order
assessment attributed to marketing promotion activities (60 percent).
The handler would be obligated to pay 40 percent of the assessment rate
on 100 percent of the product handled. The assessment calculation would
be: Quantity handled x 40 percent of the assessment rate.
A handler who handles 20 percent of their volume as
certified ``organic'' or ``100 percent organic'' product (received from
certified organic producers) and maintains a valid organic certificate
under the NOP would be eligible for an organic assessment exemption.
The handler would be exempt from the portion of the marketing order
assessment attributed to marketing promotion activities (60 percent) on
the quantity of the products handled that are organic (20 percent).
Conversely, the handler would be obligated to pay 40 percent of the
assessment rate on 20

[[Page 75010]]

percent of the product handled and 100 percent of the assessment rate
on 80 percent of the product handled. The assessment calculation would
be: (Quantity handled x 20 percent x 40 percent of the assessment rate)
+ (quantity handled x 80 percent x assessment rate).
A handler who handles 20 percent of their volume as
``organic'' or ``100 percent organic'' received from certified organic
producers, but does NOT maintain a valid organic certificate under the
NOP, would NOT be eligible for any exemption of their marketing order
assessments as they do not have proper certification. The handler would
be obligated to pay 100 percent of the assessment associated with the
quantity of product handled.
An importer who imports a commodity that is subject to
import regulation under section 8e would NOT be eligible for an
exemption from marketing order assessments as importers are not
obligated to pay assessments under a marketing order or the import
regulations.

Who is eligible for exemption under a research and promotion program?

Just as for marketing orders, this proposed rule would modify the
eligibility requirements for organic assessment exemptions that are
currently in place for research and promotion programs. Under this
proposed action, persons who are subject to an assessment under a
designated research and promotion program, who maintain a valid organic
certificate, and who handle any assessable agricultural commodities
that are certified as ``organic'' or ``100 percent organic'' (as
defined in the NOP) would be eligible for an organic assessment
exemption under amended requirements contained in each of the programs'
respective orders, plans, or regulations. Persons who are importing
organic products in compliance with a U.S. equivalency arrangement
established by NOP pursuant to OFPA and the NOP regulations would also
be eligible for an organic assessment exemption.
For the 22 research and promotion programs currently enacted, 16
assess producers, 2 assess handlers, 2 assess manufacturers, and 2
assess processors. Under the provisions for each of the respective
programs, many also assess other entities, in addition to the named
classes, including importers, exporters, feeders, and seed stock
producers. Any of the entities obligated to pay assessments under one
of the aforementioned programs is eligible for an organic assessment
exemption.
Under the current regulation, organic assessment exemptions are
available to any person who ``produces or markets solely 100 percent
organic products'' and conforms to certain requirements. As mentioned
previously, the recent amendment to the FAIR Act expands the organic
assessment exemption eligibility to any person that ``produces,
handles, markets, or imports'' organic products under a ``valid organic
certificate'' issued under the OFPA and the NOP. This proposed rule
would remove the ``solely 100 percent organic'' requirement currently
in the regulations and allow split operations to request an organic
assessment exemption for all products that qualify as certified
``organic'' and ``100 percent organic.'' Also, just as for marketing
orders, ``person'' will continue to mean any individual, group of
individuals, corporation, association, cooperative, or other business
entity engaged in any of the aforementioned activities.

Examples

For all examples, assume that the person produces, handles,
processes, or imports a commodity regulated under a research and
promotion program and is otherwise obligated to pay assessments under
that order:
A producer who maintains a valid organic certificate under
the NOP and markets 100 percent of the products they produce as
certified ``organic'' or ``100 percent organic'' would be eligible for
an organic exemption on 100 percent of the quantity produced.
A handler who maintains a valid organic certificate under
the NOP and handles 20 percent of the products they handle as certified
``organic'' or ``100 percent organic'' products would be eligible for
an organic exemption on 20 percent of the total quantity they handle.
Conversely, the handler would continue to be obligated to pay the full
assessment on the 80 percent of the total quantity they handle that is
not ``organic'' or ``100 percent organic.'' The assessment calculation
would be: quantity produced x 80 percent x assessment rate.
A processor who processes 20 percent of their volume as
``organic'' or ``100 percent organic'' products received from certified
organic producers, but does NOT maintain a valid organic certificate
under the NOP, would NOT be eligible for any exemption of their
assessment obligation as they are NOT a certified handling operation.
The processor would be obligated to pay 100 percent of the assessment
associated with the quantity of product they processed and marketed.
An importer who maintains a valid organic certificate
under the NOP and markets the products that they import as organic
products, but the producers of the products are NOT certified under the
NOP, would be eligible for an organic assessment exemption if the
product is certified as ``organic'' or ``100 percent organic'' under a
U.S. equivalency arrangement established under the NOP.

Initial Regulatory Flexibility Act Analysis

In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the impact of this proposed rule
on small entities. The purpose of the RFA is to fit regulatory actions
to the scale of businesses subject to such actions in order that small
businesses will not be unduly or disproportionately burdened.
Accordingly, AMS has considered the economic impact of this action on
small entities and has prepared this initial regulatory flexibility
analysis.

Analysis of Marketing Order Programs

Marketing orders issued pursuant to the AMAA, and the rules issued
thereunder, are unique in that they are brought about through group
action of essentially small entities acting on their own behalf.
Assessments under marketing order programs are paid by the handlers
regulated under each of the marketing orders. There are approximately
950 handlers regulated under the 23 Federal marketing orders with
market promotion authority (there are 28 marketing orders total--5 do
not have authority for market promotion activities). Currently, only 10
entities handle or market solely 100 percent organic products and claim
exemptions from paying assessments for market promotion activities,
including paid advertising, under the assessment exemption regulations
contained in Sec. 900.700. USDA believes that as many as 20 percent of
the entities handling agricultural products under the various marketing
orders (approximately 190 firms) may handle some quantity of organic
products, but do not qualify for an assessment exemption under the
current regulations.
Small agricultural service firms are defined by the Small Business
Administration (SBA) as those having annual receipts of less than
$7,000,000, and small agricultural producers are defined as those
having annual receipts of less than $750,000 (13 CFR 121.201). All of
the entities currently approved for an organic assessment exemption
under the marketing order programs would be

[[Page 75011]]

classified by SBA as small agricultural service firms. In addition,
although the exact number of potential applicants is unknown, USDA
believes that many of the entities that would become eligible for an
organic assessment exemption as a result of this proposed action may
also be classified as small firms under the SBA classification.
As previously mentioned, Section 501 of the FAIR Act was amended by
the 2002 Farm Bill to exempt persons that produced and marketed solely
100 percent organic products, and were not split operations, from the
payment of an assessment for commodity promotion activities under a
commodity promotion law. The amendment required the Secretary to
promulgate regulations with regard to the eligibility and compliance of
such organic assessment exemptions. AMS subsequently added Sec.
900.700 to the General Regulations (7 CFR part 900) governing marketing
orders to establish the criteria and procedure for obtaining an organic
assessment exemption.
On February 7, 2014, the FAIR Act was again amended by the 2014
Farm Bill to broaden the eligibility criteria for receiving an organic
assessment exemption under a commodity promotion program. Specifically,
the 2014 Farm Bill amendment to the FAIR Act exempts persons that
produce, handle, market, or import products certified as ``organic'' or
``100 percent organic'' from payment of assessments under a commodity
promotion program. The exemption applies regardless of whether a
producer, handler, marketer, or importer also produces, handles,
markets, or imports conventional or nonorganic products. The statute
further requires the Secretary to promulgate regulations under each of
the commodity promotion programs to implement the amendment.
As required, USDA is proposing amendments to the general
regulations that would affect 23 of the 28 Federal marketing orders
that have authority for market promotion, including paid advertising.
These amendments would modify the current provisions and broaden the
eligibility for organic handling operations to become exempt from
paying assessments on the certified ``organic'' and ``100 percent
organic'' products that they handle, regardless of whether the handler
is a split operation.
The 23 marketing order programs affected by this proposed rule
allow for promotion activities designed to assist, improve, and promote
the marketing, distribution, or consumption of the commodities covered
under the marketing orders. Some of the orders also include authority
for paid advertising. Expenses necessary to administer the programs are
paid for by assessments levied on handlers regulated under the various
marketing orders. Market promotion activities, including paid
advertising, are only one component of each marketing order's
regulatory scheme. The assessment exemption for organic products, as
currently implemented and as proposed going forward, only applies to
the portion of a marketing order assessment that is associated with
market promotion activities, including paid advertising. All handlers
subject to regulation under a marketing order are obligated to pay the
portion of the assessment that is not directly related to market
promotion, including paid advertising. This includes handlers who are
granted an organic assessment exemption.
Under this proposal, Sec. 900.700 would be amended to broaden the
criteria for persons eligible to obtain an assessment exemption for
marketing promotion, including paid advertising; streamline the
procedure for applying for an exemption; modify the procedure for
calculating the assessment exemption; and revise other procedural
details necessary to effectuate the 2014 Farm Bill amendment. These
changes would allow more handlers to qualify for an organic assessment
exemption than are presently eligible under the current regulations.
Regarding the impact on affected entities under a marketing order,
this proposed rule would impose minimal costs incurred in filing the
exemption application and in maintaining records needed to verify the
applicant's exemption status during the period that the entity is
exempt. Under the proposed revisions, applicants would still be
required to submit an application for exemption on Form FV-649 and
receive approval from the applicable board or committee to obtain the
assessment exemption. However, the eligibility criteria would be
broadened and the amount of documentation required of an applicant
would be reduced, thus reducing the burden on entities who wish to
participate. Applicants would continue to submit one application
annually. The annual burden associated with requests for organic
assessment exemptions for all of the marketing order industries is
estimated to total 47.5 hours (190 applicants x 15 minutes) (see the
Paperwork Reduction Act section below for greater explanation of the
information collection and recordkeeping burden).
The total estimated cost burden associated with the information
collection is estimated to be $712, or $3.75 per applicant. The total
cost was estimated by multiplying the expected burden hours associated
with the organic exemption application (47.5 hours) by $15.00 per hour,
a sum deemed reasonable should an applicant be compensated for their
time.
During the 2012-2013 marketing season, assessments for all
marketing orders totaled approximately $89,700,000. Of that amount,
about $58,300,000 (or 65 percent) was made available for marketing
promotion activities, including paid advertising. While there is not
enough information to generate a reasonable estimate, USDA believes
about two percent, on average, of the total assessments are for
commodities that are certified organic. Thus, assessments on organic
commodities might have totaled as much as $1,794,000 (2 percent of
$89,700,000). That total might be reduced moving forward by $1,166,000
(65 percent of $1,794,000--the portion of the assessments made
available for marketing activities) if all of the approximately 190
handlers that USDA believes may be eligible were to apply to the
respective board or committee and be approved for an organic assessment
exemption under the proposed regulations.
There are approximately 10 handlers that are approved for organic
assessment exemptions under the current regulation, with a total
exempted amount of approximately $135,000. The current exemption
averages approximately $13,500 per handler. Based on the estimate that
190 handlers might be exempt from assessments under the proposed
criteria, and an estimated $1,166,000 of potential exemptions, USDA
estimates that exempted organic handlers may average $6,136 in
decreased assessments. This amount is less than half of the current
average. However, the revised eligibility requirements, as proposed
herein, would be expected to attract more handlers than under the
current regulations. Many of those handlers may be small entities or
may only handle a small percentage of organic products relative to the
total amount of product handled.
There is some variation among the 23 marketing orders on the
percent of assessments used for market promotion activities, including
paid advertising. Thus, the actual reduction in assessments would
differ among the various marketing orders. In fact, the amounts
allocated for marketing promotion activities as a percentage of the
total marketing order budgets range from less than 5 percent to almost
95

[[Page 75012]]

percent. As such, the financial impact of this proposal to each handler
individually, and to each of the 23 distinct marketing order programs
collectively, cannot be accurately estimated. However, several of the
affected marketing order programs do expect to see large reductions in
assessment revenue moving forward. The Oregon-Washington Fresh Pear
Committee anticipates a $362,718 reduction is assessments, the
California Almond Board expects a reduction of $298,000, and the
California Raisin Administrative Committee expects a reduction of
$180,000 as a result of the expanded eligibility for organic assessment
exemptions. Should this rule be implemented, these boards and
committees would have to adjust programs and reduce budgeted expenses
accordingly.
Since this proposed action has the potential to exempt agricultural
handling entities from assessments, AMS believes that this rule would
have a net beneficial economic impact on exempted firms. The additional
burden associated with the additional information collection would be
more than offset by reduced assessment obligations. The benefits for
this proposed rule are not expected to be disproportionately greater or
less for smaller entities than for larger entities regulated under any
of the 23 marketing order programs.

Analysis of Research and Promotion Programs

Research and promotion programs established under the various
commodity promotion acts, and the rules and regulations issued
thereunder, are like marketing orders in that they are uniquely brought
about through group action of essentially small entities acting on
their own behalf.
Producers, handlers, first handlers, processors, importers,
exporters, feeders, and seed stock producers pay assessments to the
national boards and councils that administer the various commodity
research and promotion programs, or in some cases to other parties
designated by a board or council to collect assessments. The number of
entities paying assessments under each of the research and promotion
programs varies considerably. For example, the mango program receives
assessments from approximately 198 handlers and importers, while the
beef program receives assessments from nearly 1 million producers.
As mentioned previously, small agricultural service firms are
defined by the SBA as those having annual receipts of less than
$7,000,000, and small agricultural producers are defined as those
having annual receipts of less than $750,000. Many of the handlers,
importers, exporters, feeders, and seed stock producers currently
approved for organic assessment exemptions under the research and
promotion programs would be classified by SBA as small agricultural
service firms. In addition, most of the producers currently approved
for exemptions would also be classified as small agricultural
producers. The exact number and size of the potential applicants that
would be eligible for an assessment exemption as a result of this
proposal is not known. The current and estimated number of respondents
filing exemption claims appears later in this discussion; however, USDA
believes that many of the entities that would become eligible for an
organic assessment exemption under the proposed changes may also be
classified as small firms and/or small producers under the SBA
classification.
This proposed rule was initiated as a result of amendments to the
FAIR Act contained in the 2014 Farm Bill. This rule would modify the
current organic assessment exemption regulations under each of the 22
research and promotion programs to revise the eligibility criteria for
obtaining an organic assessment exemption. As proposed, entities that
produce, handle, market, or import organic products may be exempt from
the payment of an assessment under a commodity promotion law with
respect to any agricultural commodity that is certified as ``organic''
or ``100 percent organic'' under the NOP. The exemption would apply to
the certified ``organic'' or ``100 percent organic'' products
regardless of whether the agricultural commodity subject to the
exemption is produced, handled, marketed, or imported by a person that
also produces, handles, or markets conventional or nonorganic
agricultural products. This is a change from the current regulations,
which only allow organic assessment exemptions for organic operations
that produce and market solely products that are ``100 percent
organic'' as defined under the OFPA and are not split operations.
Under the current regulations, eligible producers, handlers, first
handlers, processors, importers, exporters, feeders, and seed stock
producers that wish to be exempted from assessment on their certified
organic products must submit a request for exemption to the appropriate
board or council on Form AMS-15. This provision would not change as a
result of this proposed rule. However, the proposed action would reduce
the information collection requirements for requesting an organic
assessment exemption to reflect the revised eligibility criteria and
would necessitate modifying Form AMS-15 to reflect the proposed
changes. The modified form would continue to be required under the
proposed revisions to assist the board or council in the effective
administration of the exemption and to ensure compliance with the
exemption requirements.
In preparing this initial regulatory flexibility analysis, AMS has
attempted to identify the entities that would be affected by the
proposed rule and examine the potential impact on such entities. AMS
has determined that this proposed rule would have very little negative
impact on entities regulated under research and promotion programs.
Further, the proposed changes would only impose minimal costs incurred
in the filing of the exemption request and in maintaining records
needed to verify the applicant's exemption status during the period
that the entity is exempt. Under the proposed revisions, the required
information collection burden would be reduced for entities who wish to
initiate or perpetuate an organic assessment exemption. Applicants
would continue to be required to submit one application annually.
All of the entities paying assessments to the research and
promotion programs are eligible to take advantage of the proposed rule
changes contained herein, provided the parties elect to apply and
otherwise comply with the exemption requirements as specified under
each of the individual orders.
Approximately 1,493 entities are currently approved for organic
assessment exemptions under the 22 research and promotion programs.
Organic assessment exemptions for the past year were approximately
$1,400,000 for all of the programs in aggregate. In 2013, it is
estimated that the dairy products program had the largest number of
exemptions, with 1,150 producers exempt, and the highest dollar amount,
with nearly 1 million dollars of assessment exemptions. Participation
in the other programs varied. Ten of the 22 research and promotion
programs currently do not have any entities approved for organic
assessment exemptions.
The estimated number of respondents filing exemption claims with
the boards or councils after implementation of the proposed changes to
the regulations is anticipated as follows:

------------------------------------------------------------------------
Current Estimated
------------------------------------------------------------------------
Beef............................................ 30 2,966
Blueberries..................................... 8 204

[[Page 75013]]

Christmas trees................................. 0 0
Cotton.......................................... 0 (\1\)
Dairy........................................... 1,150 1,823
Eggs............................................ 0 20
Fluid milk...................................... 0 11
Hass avocados................................... 230 771
Honey........................................... 2 327
Lamb............................................ 3 7
Mangos.......................................... 3 75
Mushrooms....................................... 7 246
Paper and Paper-based Packaging................. 0 0
Peanuts......................................... 0 85
Popcorn......................................... 0 170
Pork............................................ 5 18
Potatoes........................................ 6 904
Raspberries..................................... 0 232
Softwood lumber................................. 0 0
Sorghum......................................... 10 10
Soybeans........................................ 39 1,930
Watermelons..................................... 0 412
-----------------------
Totals...................................... 1,493 10,211
------------------------------------------------------------------------
\1\ No estimate.

No respondents are expected from among Christmas tree, paper and
paper-based packaging, or softwood lumber entities, given the nature of
their industries. In addition, several of the programs exempt smaller
entities from assessment--fluid milk processors processing less than 3
million pounds; egg producers owning 75,000 or fewer hens; raspberry
producers producing less than 20,000 pounds; mushroom producers
producing less than 500,000 pounds; honey first handlers handling less
than 250,000 pounds; popcorn processors processing less than 4 million
pounds; blueberry producers producing less than 2,000 pounds; and
sorghum importers importing less than 1,000 bushels of grain or 5,000
tons of silage. More new respondents would have been expected under
those programs if the smaller entities were not already exempt based on
minimum quantities.
Under the proposed regulations, the annual burden related to
submitting requests for organic assessment exemptions for all of the
entities covered under the 22 research and promotion programs is
estimated to total 2,552.75 hours (10,211 entities x 15 minutes) (see
the Paperwork Reduction Act section for more detail). The total
financial burden associated with the information collection for all
industries covered by the programs is estimated to be $38,291.25, or
$3.75 per applicant. The total cost was estimated by multiplying the
expected burden hours associated with the exemption application
(2,552.75 hours) by $15.00 per hour, a sum deemed reasonable should an
applicant be compensated for their time.
This proposed rule would allow eligible producers, handlers, first
handlers, processors, importers, exporters, feeders, and seed stock
producers to request an exemption from paying assessments on products
certified as ``organic'' or ``100 percent organic.'' The proposed
changes would revise the organic exemption eligibility criteria under
each of the research and promotion programs, thereby making the
exemption available to more entities. The revised eligibility criteria
are expected to increase the total number of participants as well as
the total amount of organic assessment exemptions under each of the
programs. The estimated total in organic assessment exemption amounts
expected to result from revising the eligibility requirements are as
follows:

Beef....................................................... $2,400,000
Blueberries................................................ (\1\)
Christmas trees............................................ 0
Cotton..................................................... (\1\)
Dairy...................................................... 4,190,000
Eggs....................................................... 742,500
Fluid milk................................................. 4,530,000
Hass avocados.............................................. 850,000
Honey...................................................... (\1\)
Lamb....................................................... 114,000
Mangos..................................................... (\1\)
Mushrooms.................................................. 132,655
Paper and Paper-based packaging............................ 0
Peanuts.................................................... 6,517
Popcorn.................................................... (\1\)
Pork....................................................... 111,000
Potatoes................................................... (\1\)
Raspberries................................................ (\1\)
Softwood lumber............................................ 0
Sorghum.................................................... 122,500
Soybeans................................................... 427,800
Watermelons................................................ (\1\)
------------
Total.................................................. 13,626,972

\1\ No estimate.

There are no estimated assessment exemption amounts for the
Christmas tree, paper and paper-based-packaging, or softwood lumber
programs given the nature of these industries. Some boards and councils
were able to estimate the number of organic production and marketing
operations within their industries; however, based upon current data,
there is not enough information to generate a reasonable estimate of
the potential dollar amount of organic assessment exemptions reported
as ``no estimate.'' The boards and councils that reported ``no
estimate'' generally represent programs that estimated small
percentages of participation amongst their industries. Should this rule
be implemented, these boards and committees would have to adjust
programs and reduce budgeted expenses accordingly.
Since this proposed action has the potential to exempt agricultural
production, handling, and marketing entities from assessments, AMS
believes that this rule would have a net beneficial economic impact on
exempted firms. The additional burden associated with the additional
information collection would be more than offset by reduced assessment
obligations. The benefits for this proposed rule are not expected to be
disproportionately greater or less for small producers, handlers, or
marketers than for larger entities regulated under any of the 22
research and promotion programs.
To ensure that AMS is able to thoroughly assess the potential
impact of this proposed rule on affected entities, interested parties
are invited to submit comments, views, and opinions on the probable
regulatory and informational impacts of this action on small entities.
Comments may indicate the size, number, and type of entities that would
be affected by this proposal, explain the potential effects of the
proposed amendments on those entities, and provide any pertinent
information and data.

Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection requirements have been
previously approved by the Office of Management and Budget (OMB) under
23 Federal marketing order programs (7 CFR parts 905, 906, 915, 922,
923, 925, 927, 929, 930, 932, 948, 955, 956, 958, 959, 966, 981, 982,
984, 985, 987, 989, and 993) and 22 research and promotion programs (7
CFR parts 1150, 1160, 1205, 1206, 1207, 1208, 1209, 1210, 1212, 1214,
1215, 1216, 1217, 1218, 1219, 1220, 1221, 1222, 1230, 1250, 1260, and
1280). Upon publication of the final rule, AMS will submit a
Justification for Change to OMB for the AMS-15 Exemption Application
Form for Research and Promotion Programs, OMB No. 0581-0093 National
Research, Promotion and Consumer Information Programs. AMS will also
submit a Justification for Change to OMB for the FV-649 Exemption
Application Form for Marketing Orders, OMB No. 0581-0216 Fruit and
Vegetable Marketing Orders Certified Organic Handler Marketing
Promotion Assessment Exemption under 23 Federal Marketing Orders. The
Justification for Change will request approval for an increase in
number of respondents, reduction in per response time, and an increase
in burden hours for these two forms.
While this proposed rule has not received the approval of USDA, it
has been determined that it is consistent

[[Page 75014]]

with and would effectuate the purposes of the Commodity Promotion,
Research, and Information Act of 1996, for the programs for which the
Act is applicable.
A 30-day comment period for the proposed rule is provided to allow
interested persons to submit written comments on the proposed changes
to the criteria for identifying persons eligible to obtain an
assessment exemption for organic products and the procedural details
for obtaining an exemption under the various commodity promotion
programs. Thirty days is deemed appropriate because this action was
mandated by Congress under the 2014 Farm Bill and is intended to
provide a broader exemption to certified producers, handlers,
marketers, feeders, seed stock producers, producers, exporters and
importers of ``organic'' and ``100 percent organic'' products. All
comments timely received will be considered before a final
determination is made on this matter.

List of Subjects

7 CFR Part 900

Administrative practice and procedure, Freedom of information,
Marketing agreements, Reporting and recordkeeping requirements.

7 CFR Part 1150

Administrative practice and procedure, Dairy products, Reporting
and recordkeeping requirements, Research.

7 CFR Part 1160

Administrative practice and procedure, Fluid milk products,
Promotion, Reporting and recordkeeping requirements.

7 CFR Part 1205

Administrative practice and procedure, Advertising, Agricultural
research, Cotton, Reporting and recordkeeping requirements.

7 CFR Part 1206

Administrative practice and procedure, Advertising, Agricultural
research, Mango, Marketing agreements, Reporting and recordkeeping
requirements.

7 CFR Part 1207

Advertising, Agricultural Research, Imports, Potatoes, Reporting
and recordkeeping requirements.

7 CFR Part 1208

Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Raspberry promotion, Reporting and
recordkeeping requirements.

7 CFR Part 1209

Administrative practice and procedure, Advertising, Agricultural
research, Imports, Mushrooms, Reporting and recordkeeping requirements.

7 CFR Part 1210

Administrative practice and procedure, Advertising, Agricultural
research, Reporting and recordkeeping requirements, Watermelons.

7 CFR Part 1212

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

7 CFR Part 1214

Administrative practice and procedure, Advertising, Christmas trees
promotion, Consumer information, Marketing agreements, Reporting and
recordkeeping requirements.

7 CFR Part 1215

Administrative practice and procedures, Advertising, Agricultural
research, Popcorn, Reporting and recordkeeping requirements.

7 CFR Part 1216

Administrative practice and procedure, Advertising, Agricultural
research, Peanuts, Reporting and recordkeeping requirements.

7 CFR Part 1217

Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Promotion, Reporting and
recordkeeping requirements, Softwood lumber.

7 CFR Part 1218

Administrative practice and procedure, Advertising, Agricultural
Research, Blueberries, Reporting and recordkeeping requirements.

7 CFR Part 1219

Administrative practice and procedure, Advertising, Agricultural
research, Hass avocados, Reporting and recordkeeping requirements.

7 CFR Part 1220

Administrative practice and procedure, Agricultural research,
Reporting and recordkeeping requirements, Soybeans and soybean
products.

7 CFR Part 1221

Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Reporting and recordkeeping
requirements, Sorghum and sorghum product.

7 CFR Part 1222

Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Paper and paper-based-packaging
promotion, Reporting and recordkeeping requirements.

7 CFR Part 1230

Administrative practice and procedure, Advertising, Agricultural
research, Marketing agreement, Pork and pork products, Reporting and
recordkeeping requirements.

7 CFR Part 1250

Administrative practice and procedure, Advertising, Agricultural
research, Eggs and egg products, Reporting and recordkeeping
requirements.

7 CFR Part 1260

Administrative practice and procedure, Advertising, Agricultural
research, Imports, Marketing agreements, Meat and meat products,
Reporting and recordkeeping requirements.

7 CFR Part 1280

Administrative practice and procedure, Advertising, Lamb and lamb
products, Marketing agreements, Reporting and recordkeeping
requirements.

For the reasons set forth in the preamble, 7 CFR parts 900, 1150,
1160, 1205, 1206, 1207, 1208, 1209, 1210, 1212, 1214, 1215, 1216, 1217,
1218, 1219, 1220, 1221, 1222, 1230, 1250, 1260, and 1280 are proposed
to be amended as follows:

PART 900--GENERAL REGULATIONS

0
1. The authority citation for 7 CFR part 900 continues to read as
follows:

Authority: 7 U.S.C. 601-674 and 7 U.S.C. 7401.

0
2. Revise Sec. 900.700 to read as follows:

Sec. 900.700 Exemption from assessments.

(a) This section specifies criteria for identifying persons
eligible to obtain an exemption from the portion of the assessment used
to fund marketing promotion activities under a marketing order and the
procedures for applying for such an exemption under 7 CFR parts 905,
906, 915, 922, 923, 925, 927,

[[Page 75015]]

929, 930, 932, 948, 955, 956, 958, 959, 966, 981, 982, 984, 985, 987,
989, 993, and such other parts (included in 7 CFR parts 905 through
998) covering marketing orders for fruits, vegetables, and specialty
crops as may be established or amended to include market promotion. For
the purposes of this section, the term ``assessment period'' means
fiscal period, fiscal year, crop year, or marketing year as defined
under these parts; the term ``marketing promotion'' means marketing
research and development projects or marketing promotion, including
paid advertising designed to assist, improve, or promote the marketing,
distribution, or consumption of the applicable commodity.
(b) A handler who operates under an approved National Organic
Program (7 CFR part 205) (NOP) organic handling system plan and is
subject to assessments under a part or parts specified in paragraph (a)
of this section may be exempt from the portion of the assessment
applicable to marketing promotion, including paid advertising, provided
that:
(1) Only agricultural commodities certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a handler
regardless of whether the agricultural commodity subject to the
exemption is handled by a person that also handles conventional or non-
organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(3) The handler maintains a valid certificate of organic operation
as issued under the Organic Foods Production Act of 1990 (7 U.S.C.
6501-6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part
205);
(4) Any handler so exempted shall continue to be obligated to pay
assessments under such part or parts specified that are associated with
any agricultural products that do not qualify for an exemption under
this section; and
(5) For exempted products, any handler so exempted shall be
obligated to pay the portion of the assessment associated with the
other authorized activities under such part or parts other than
marketing promotion, including paid advertising.
(c) Assessment Exemption Application. (1) To be exempt from paying
assessments for these purposes under a part or parts listed in
paragraph (a) of this section, the handler shall submit an application
to the committee or board established under the applicable part or
parts prior to or during the assessment period. This application, Form
FV-649, ``Certified Organic Handler Application for Exemption from
Market Promotion Assessments Paid Under Federal Marketing Orders,''
shall include:
(i) The date, applicable committee or board, and Federal marketing
order number;
(ii) The applicant's full name, company name, address, telephone
and fax numbers, and email address (optional);
(iii) Certification that the applicant maintains a valid
certificate of organic operation under the OFPA and the NOP;
(iv) Certification that the applicant handles or markets organic
products eligible to be labeled ``organic'' or ``100 percent organic''
under the NOP;
(v) Certification that the applicant is otherwise subject to
assessments under the Federal marketing order program for which the
exemption is requested;
(vi) The number of organic certified producers for whom they handle
or market product (including the applicant);
(vii) A requirement that the applicant attach a copy of their
certificate of organic operation and all applicable producer
certificates of organic operation issued by a USDA-accredited
certifying agent under the OFPA and the NOP;
(viii) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(ix) Such other information as the committee or board may require,
with the approval of the Secretary.
(2) The handler shall file the application with the committee or
board, prior to or during the applicable assessment period, and
annually thereafter, as long as the handler continues to be eligible
for the exemption. If the person complies with the requirements of this
section and is eligible for an assessment exemption, the committee or
board will approve the exemption request and provide written
notification of such to the applicant within 30 days. If the
application is disapproved, the committee or board will provide written
notification of the reason(s) for such disapproval within the same
timeframe.
(3) The exemption will apply at the beginning of the next
assessable period following notification of approval of the assessment
exemption, in writing, by the committee or board.
(d) Assessment Exemption Calculation. (1) The applicable assessment
rate for any handler approved for an exemption shall be computed by
dividing the committee's or board's estimated non-marketing promotion
expenditures by the committee's or board's estimated total expenditures
approved by the Secretary and applying that percentage to the
assessment rate applicable to all persons for the assessment period.
The modified assessment rate shall then be applied to the quantity of
certified ``organic'' or ``100 percent organic'' products handled under
an approved organic assessment exemption as provided in paragraph
(c)(2) of this section. Products handled not subject to an approved
organic assessment exemption shall be assessed at the assessment rate
applicable to all persons for the assessment period. The committee's or
board's estimated non-marketing promotion expenditures shall exclude
the direct costs of marketing promotion and the portion of committee's
or board's administrative and overhead costs (e.g., salaries, supplies,
printing, equipment, rent, contractual expenses, and other applicable
costs) to support and administer the marketing promotion activities.
(2) If a committee or board does not plan to conduct any market
promotion activities in a fiscal year, the committee or board may
submit a certification to that effect to the Secretary, and as long as
no assessments for such fiscal year are used for marketing promotion
projects, or the administration of projects are funded by a previous
fiscal period's assessments, the committee or board may assess all
handlers, regardless of their organic status, the full assessment rate
applicable to the assessment period.
(3) For each assessment period, the Secretary shall review the
portion of the assessment rate applicable to marketing promotion for
persons eligible for an exemption and, if appropriate, approve the
assessment rate.
(4) When the requirements of this section for exemption no longer
apply to a handler, the handler shall inform the committee or board
within 30 days and pay the full assessment on all remaining assessable
product for all committee or board assessments from the date the
handler no longer is eligible to the end of the assessment period.
(5) Within 30 days following the applicable assessment period, the
committee or board shall re-compute the applicable assessment rate for
handlers exempt under this section based on the actual expenditures
incurred during the applicable assessment period. The Secretary shall
review, and if appropriate, approve any change in the portion of the
assessment rate for market promotion applicable to exempt handlers, and
authorize adjustments for

[[Page 75016]]

any overpayments or collection of underpayments.

PART 1150--DAIRY PROMOTION PROGRAM

0
3. The authority citation for 7 CFR part 1150 continues to read as
follows:

Authority: 7 U.S.C. 4501-4514 and 7 U.S.C. 7401.

0
4. In Sec. 1150.157, revise paragraphs (a), (b), (c), (d), (e), (g),
(i), and (j) to read as follows:

Sec. 1150.157 Assessment exemption.

(a) A producer described in Sec. 1150.152(a)(1) and (2) who
operates under an approved National Organic Program (7 CFR part 205)
(NOP) organic production system plan may be exempt from the payment of
assessments provided that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of the producer
regardless of whether the agricultural commodity subject to the
exemption is produced by a person that also produces conventional or
non-organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(3) The producer maintains a valid certificate of organic operation
as issued under the Organic Foods Production Act of 1990 (7 U.S.C.
6501-6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part
205); and
(4) Any producer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any agricultural
products that do not qualify for an exemption under this section.
(b) To apply for exemption under this section, a producer subject
to assessments pursuant to Sec. 1150.152(a)(1) and (2) shall submit a
request to the Board on an Organic Exemption Request Form (Form AMS-15)
at any time during the year initially, and annually thereafter on or
before July 1, for as long as the producer continues to be eligible for
the exemption.
(c) A producer request for exemption shall include the following:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid organic
certificate issued under the OFPA and the NOP;
(3) Certification that the applicant produces organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(d) If a producer complies with the requirements of this section,
the Board will grant an assessment exemption and issue a Certificate of
Exemption to the producer within 30 days. If the application is
disapproved, the Board will notify the applicant of the reason(s) for
disapproval within the same timeframe.
(e) A producer approved for exemption under this section shall
provide a copy of the Certificate of Exemption to each person
responsible for remitting assessments to the Board on behalf of the
producer pursuant to Sec. 1150.152(a).
* * * * *
(g) An importer who imports products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP may be
exempt from the payment of assessments on those products. Such importer
may submit documentation to the Board and request an exemption from
assessment on certified ``organic'' or ``100 percent organic'' dairy
products on an Organic Exemption Request Form (Form AMS-15) at any time
initially, and annually thereafter on or before July 1, as long as the
importer continues to be eligible for the exemption. This documentation
shall include the same information required of producers in paragraph
(c) of this section. If the importer complies with the requirements of
this section, the Board will grant the exemption and issue a
Certificate of Exemption to the importer. The Board will also issue the
importer an alphanumeric number valid for 1 year from the date of
issue. This alphanumeric number should be entered by the importer on
the CBP entry documentation. Any line item entry of ''organic'' or
``100 percent organic'' dairy products bearing this alphanumeric number
assigned by the Board will not be subject to assessments. Any importer
so exempted shall continue to be obligated to pay assessments under
this part that are associated with any imported agricultural products
that do not qualify for an exemption under this section.
* * * * *
(i) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.
(j) An importer who is exempt from payment of assessments under
paragraph (g) of this section shall be eligible for reimbursement of
assessments collected by the CBP on certified ``organic'' or ``100
percent organic'' dairy products and may apply to the Secretary for a
reimbursement. The importer would be required to submit satisfactory
proof to the Secretary that the importer paid the assessment on exempt
organic products.

PART 1160--FLUID MILK PROMOTION PROGRAM

0
5. The authority citation for 7 CFR part 1160 continues to read as
follows:

Authority: 7 U.S.C. 6401-6417 and 7 U.S.C. 7401.

0
6. In Sec. 1160.215, revise paragraphs (b) through (e) to read as
follows:

Sec. 1160.215 Assessment exemption.

* * * * *
(b) A fluid milk processor described in Sec. 1160.211(a) who
operates under an approved National Organic Program (7 CFR part 205)
(NOP) organic handling system plan may be exempt from the payment of
assessments provided that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a fluid milk
processor regardless of whether the agricultural commodity subject to
the exemption is processed by a person that also processes conventional
or non-organic agricultural products of the same agricultural commodity
as that for which the exemption is claimed;
(3) The fluid milk processor maintains a valid certificate of
organic operation as issued under the Organic Foods Production Act of
1990 (7 U.S.C. 6501-6522) (OFPA) and the NOP regulations

[[Page 75017]]

issued under OFPA (7 CFR part 205); and
(4) Any fluid milk processor so exempted shall continue to be
obligated to pay assessments under this part that are associated with
any agricultural products that do not qualify for an exemption under
this section.
(c) To apply for an assessment exemption, a fluid milk processor
described in Sec. 1160.211(a) shall submit a request to the Board on
an Organic Exemption Request Form (Form AMS-15) at any time during the
year initially, and annually thereafter on or before July 1, for as
long as the processor continues to be eligible for the exemption.
(d) A fluid milk processor request for exemption shall include the
following information:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid organic
certificate issued under the OFPA and the NOP;
(3) Certification that the applicant processes organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(e) If a fluid milk processor complies with the requirements of
this section, the Board will grant an assessment exemption and issue a
Certificate of Exemption to the processor within 30 days. If the
application is disapproved, the Board will notify the applicant of the
reason(s) for disapproval within the same timeframe.
* * * * *

PART 1205--COTTON RESEARCH AND PROMOTION

0
7. The authority citation for 7 CFR part 1205 continues to read as
follows:

Authority: 7 U.S.C. 2101-2118 and 7 U.S.C. 7401.

0
8. In Sec. 1205.519, revise paragraphs (a), (b), (c), (d), (e), (f),
and (h) and add paragraph (i) to read as follows:

Sec. 1205.519 Organic exemption.

(a) A producer who operates under an approved National Organic
Program (7 CFR part 205) (NOP) organic production system plan may be
exempt from the payment of assessments provided that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a producer
regardless of whether the agricultural commodity subject to the
exemption is produced by a person that also produces conventional or
non-organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(3) The producer maintains a valid certificate of organic operation
as issued under the Organic Foods Production Act of 1990 (7 U.S.C.
6501-6522) (OFPA) and the NOP regulations issued under the OFPA (7 CFR
part 205); and
(4) Any producer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any agricultural
products that do not qualify for an exemption under this section.
(b) To apply for an exemption under this section, an eligible
cotton producer shall submit a request for exemption to the Board on an
Organic Exemption Request Form (Form AMS-15) at any time initially, and
annually thereafter on or before the beginning of the crop year, as
long as the producer continues to be eligible for the exemption.
(c) A producer request for exemption shall include the following:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(3) Certification that the applicant produces and/or imports
organic products eligible to be labeled ``organic'' or ``100 percent
organic'' under the NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(d) If a producer complies with the requirements of this section,
the Board will grant an assessment exemption and issue a Certificate of
Exemption to the producer within 30 days. If the application is
disapproved, the Board will notify the applicant of the reason(s) for
disapproval within the same timeframe.
(e) A producer approved for exemption under this section shall
provide a copy of the Certificate of Exemption to each handler to whom
the producer sells cotton. The handler shall maintain records showing
the exempt producer's name and address and the exemption number
assigned by the Board.
(f) An importer who imports products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP may be
exempt from the payment of assessments on those products. Such importer
may submit documentation to the Board and request an exemption from
assessment on certified ``organic'' or ``100 percent organic'' cotton
and cotton products on an Organic Exemption Request Form (Form AMS-15)
at any time initially, and annually thereafter, as long as the importer
continues to be eligible for the exemption. This documentation shall
include the same information required of producers in paragraph (c) of
this section. If the importer complies with the requirements of this
section, the Board will grant the exemption and issue a Certificate of
Exemption to the importer. The Board will also issue the importer an
alphanumeric number valid for 1 year from the date of issue. This
alphanumeric number should be entered by the importer on the Customs
entry documentation. Any line item entry of ``organic'' or ``100
percent organic'' cotton and cotton products bearing this alphanumeric
number assigned by the Board will not be subject to assessments. Any
importer so exempted shall continue to be obligated to pay assessments
under this part that are associated with any imported agricultural
products that do not qualify for an exemption under this section.
* * * * *
(h) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.
(i) An importer who is exempt from payment of assessments under

[[Page 75018]]

paragraph (f) of this section shall be eligible for reimbursement of
assessments collected by Customs on certified ``organic'' or ``100
percent organic'' cotton and cotton products and may apply to the
Secretary for a reimbursement. The importer would be required to submit
satisfactory proof to the Secretary that the importer paid the
assessment on exempt organic products.

PART 1206--MANGO PROMOTION, RESEARCH, AND INFORMATION

0
9. The authority citation for 7 CFR part 1206 continues to read as
follows:

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

0
10. In Sec. 1206.202, revise paragraphs (a), (b), (c), (d), and (e)
and add paragraph (g) to read as follows:

Sec. 1206.202 Exemption for organic mangos.

(a) A first handler who operates under an approved National Organic
Program (7 CFR part 205) (NOP) organic handling system plan may be
exempt from the payment of assessments provided that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products handled by the first
handler regardless of whether the agricultural commodity subject to the
exemption is handled by a person that also handles conventional or non-
organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(3) The first handler maintains a valid certificate of organic
operation as issued under the Organic Foods Production Act of 1990 (7
U.S.C. 6501-6522) (OFPA) and the NOP regulations issued under OFPA (7
CFR part 205); and
(4) Any first handler so exempted shall continue to be obligated to
pay assessments under this part that are associated with any
agricultural products that do not qualify for an exemption under this
section.
(b) To apply for exemption under this section, an eligible first
handler shall submit a request for exemption to the Board on an Organic
Exemption Request Form (Form AMS-15) at any time initially, and
annually thereafter on or before the beginning of the fiscal period, as
long as the first handler continues to be eligible for the exemption.
(c) A first handler request for exemption shall include the
following:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(3) Certification that the applicant handles organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(d) If a first handler complies with the requirements of this
section, the Board will grant an assessment exemption and issue a
Certificate of Exemption to the first handler within 30 days. If the
application is disapproved, the Board will notify the applicant of the
reason(s) for disapproval within the same timeframe.
(e) An importer who imports products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP shall
be exempt from the payment of assessments on those products. Such
importer may submit documentation to the Board and request an exemption
from assessment on certified ``organic'' or ``100 percent organic''
mangos on an Organic Exemption Request Form (Form AMS-15) at any time
initially, and annually thereafter on or before the beginning of the
fiscal period, as long as the importer continues to be eligible for
exemption. This documentation shall include the same information
required of first handlers in paragraph (c) of this section. If the
importer complies with the requirements of this section, the Board will
grant the exemption and issue a Certificate of Exemption to the
importer within the applicable timeframe. If Customs collects the
assessment on exempt product that is identified as ``organic'' by a
number in the Harmonized Tariff Schedule, the Board must reimburse the
exempt importer the assessments paid upon receipt of such assessments
from Customs. For all other exempt organic product for which Customs
collects the assessment, the importer may apply to the Board for a
reimbursement of assessments paid, and the importer must submit
satisfactory proof to the Board that the importer paid the assessment
on exempt organic product. Any importer so exempted shall continue to
be obligated to pay assessments under this part that are associated
with any imported agricultural products that do not qualify for an
exemption under this section.
* * * * *
(g) An importer who is exempt from payment of assessments under
paragraph (e) of this section shall be eligible for reimbursement of
assessments collected by the CBP on certified ``organic'' or ``100
percent organic'' mangos and may apply to the Secretary for a
reimbursement. The importer would be required to submit satisfactory
proof to the Secretary that the importer paid the assessment on exempt
organic products.

PART 1207--POTATO RESEARCH AND PROMOTION PLAN

0
11. The authority citation for 7 CFR part 1207 continues to read as
follows:

Authority: 7 U.S.C. 2611-2627 and 7 U.S.C. 7401.

0
12. In Sec. 1207.514, revise paragraphs (a), (b), (c), (d), (e), (f),
and (h) to read as follows:

Sec. 1207.514 Exemption for organic potatoes.

[[Page 75019]]

(c) The producer request for exemption shall include the following:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(3) Certification that the applicant produces organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(d) If a producer complies with the requirements of this section,
the Board will grant an assessment exemption and issue a Certificate of
Exemption to the producer within 30 days. If the application is
disapproved, the Board will notify the applicant of the reason(s) for
disapproval within the same timeframe.
(e) A producer approved for exemption under this section shall
provide a copy of the Certificate of Exemption to each handler to whom
the producer sells potatoes. The handler shall maintain records showing
the exempt producer's name and address and the exemption number
assigned by the Board.
(f) An importer who imports products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP shall
be exempt from the payment of assessments on those products. Such
importer may submit documentation to the Board and request an exemption
from assessment on certified ``organic'' or ``100 percent organic''
potatoes, potato products, and seed potatoes on an Organic Exemption
Request Form (Form AMS-15) at any time initially, and annually
thereafter on or before July 1, as long as the importer continues to be
eligible for the exemption. This documentation shall include the same
information required of producers in paragraph (c) of this section. If
the importer complies with the requirements of this section, the Board
will grant the exemption and issue a Certificate of Exemption to the
importer. If Customs collects the assessment on exempt product that is
identified as ``organic'' by a number in the Harmonized Tariff
Schedule, the Board must reimburse the exempt importer the assessments
paid upon receipt of such assessments from Customs. For all other
exempt organic product for which Customs collects the assessment, the
importer may apply to the Board for a reimbursement of assessments
paid, and the importer must submit satisfactory proof to the Board that
the importer paid the assessment on exempt organic product. Any
importer so exempted shall continue to be obligated to pay assessments
under this part that are associated with any imported agricultural
products that do not qualify for an exemption under this section.
* * * * *
(h) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.

PART 1208--PROCESSED RASPBERRY PROMOTION, RESEARCH, AND INFORMATION
ORDER

0
13. The authority citation for 7 CFR part 1208 continues to read as
follows:

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

0
14. In Sec. 1208.53, revise paragraph (d) to read as follows:

Sec. 1208.53 Exemption and reimbursement procedures.

* * * * *
(d) Organic exemption. (1) A producer of raspberries for processing
who operates under an approved National Organic Program (7 CFR part
205) (NOP) organic production system plan may be exempt from the
payment of assessments provided that:
(i) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(ii) The exemption shall apply to all certified ``organic'' or
``100 percent organic'' (as defined in the NOP) products of a producer
regardless of whether the agricultural commodity subject to the
exemption is produced by a person that also produces conventional or
non-organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(iii) The producer maintains a valid certificate of organic
operation as issued under the Organic Foods Production Act of 1990 (7
U.S.C. 6501-6522) (OFPA) and the NOP regulations issued under OFPA (7
CFR part 205); and
(iv) Any producer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any agricultural
products that do not qualify for an exemption under this section.
(2) To apply for exemption under this section, an eligible producer
shall submit a request to the Council on an Organic Exemption Request
Form (Form AMS-15) at any time during the year initially, and annually
thereafter on or before the beginning of the fiscal period, for as long
as the producer continues to be eligible for the exemption.
(3) A producer request for exemption shall include the following:
(i) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(ii) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(iii) Certification that the applicant produces organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(iv) A requirement that the applicant attach a copy of their
certificate of organic operation provided by a USDA-accredited
certifying agent under the OFPA and the NOP;
(v) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(vi) Such other information as may be required by the Council, with
the approval of the Secretary.
(4) If a producer complies with the requirements of this section,
the Council will grant an assessment exemption and issue a Certificate
of Exemption to the producer within 30 days. If the application is
disapproved, the Council will notify the applicant of the reason(s) for
disapproval within the same timeframe.
(5) An importer who imports products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP may be
exempt from the payment of assessments on those products. Such importer
may submit documentation to the Council and request an exemption from
assessment on certified ``organic'' or ``100 percent organic''
processed raspberries on an Organic Exemption Request Form (Form AMS-
15) at any time initially, and

[[Page 75020]]

annually thereafter on or before the beginning of the fiscal period, as
long as the importer continues to be eligible for the exemption. This
documentation shall include the same information required of a producer
in paragraph (d)(3) of this section. If the importer complies with the
requirements of this section, the Council will grant the exemption and
issue a Certificate of Exemption to the importer within the applicable
timeframe. If Customs collects the assessment on exempt product that is
identified as ``organic'' by a number in the Harmonized Tariff
Schedule, the Council must reimburse the exempt importer the
assessments paid upon receipt of such assessments from Customs. For all
other exempt organic product for which Customs collects the assessment,
the importer may apply to the Council for a reimbursement of
assessments paid, and the importer must submit satisfactory proof to
the Council that the importer paid the assessment on exempt organic
product. Any importer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any imported
agricultural products that do not qualify for an exemption under this
section.
* * * * *

PART 1209--MUSHROOM PROMOTION, RESEARCH, AND CONSUMER INFORMATION
ORDER

0
15. The authority citation for 7 CFR part 1209 continues to read as
follows:

Authority: 7 U.S.C. 6101-6112 and 7 U.S.C. 7401.

0
16. In Sec. 1209.52, revise paragraph (a) to read as follows:

Sec. 1209.52 Exemption from assessment.

(a) The following persons shall be exempt from assessments under
this part:
(1) A person who produces or imports, on average, 500,000 pounds or
less of mushrooms annually shall be exempt from assessments under this
part.
(2) [Reserved]
(3) [Reserved]
* * * * *
0
17. In Sec. 1209.252, redesignate paragraph (a)(2) as paragraph
(a)(4), add paragraphs (a)(2) and (3), and revise newly redesignated
paragraph (a)(4) to read as follows:

Sec. 1209.252 Exemptions and exemption procedures.

(a) * * *
(2) In addition to the exemption provided for in Sec. 1209.52, a
producer who operates under an approved National Organic Program (7 CFR
part 205) (NOP) system plan; produces products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP;
(3) An importer who imports products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP (7 CFR
part 205);
(4) To apply for an exemption for organic mushrooms:
(i) An eligible mushroom producer shall submit a request for
exemption to the Council on an Organic Exemption Request Form (Form
AMS-15) at any time initially, and annually thereafter on or before
January 1, as long as the producer continues to be eligible for the
exemption.
(ii) A producer request for exemption shall include the following:
(A) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(B) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(C) Certification that the applicant produces organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(D) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(E) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(F) Such other information as may be required by the Council, with
the approval of the Secretary.
(iii) If a producer complies with the requirements of this section,
the Council will grant an assessment exemption and issue a Certificate
of Exemption to the producer within 30 days. If the application is
disapproved, the Council will notify the applicant of the reason(s) for
disapproval within the same timeframe.
(iv) An eligible mushroom importer shall submit a request for
exemption from assessment on imported certified ``organic'' or ``100
percent organic'' mushrooms on an Organic Exemption Request Form (Form
AMS-15) at any time initially, and annually thereafter on or before
January 1, as long as the importer continues to be eligible for the
exemption. This documentation shall include the same information
required of producers in paragraph (a)(4)(ii) of this section. If the
importer complies with the requirements of this section, the Council
will grant the exemption and issue a Certificate of Exemption to the
importer. If Customs collects the assessment on exempt product that is
identified as ``organic'' by a number in the Harmonized Tariff
Schedule, the Council must reimburse the exempt importer the
assessments paid upon receipt of such assessments from Customs. For all
other exempt organic product for which Customs collects the assessment,
the importer may apply to the Council for a reimbursement of
assessments paid, and the importer must submit satisfactory proof to
the Council that the importer paid the assessment on exempt organic
product. Any importer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any imported
agricultural products that do not qualify for an exemption under this
section.
(v) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.
* * * * *

PART 1210--WATERMELON RESEARCH AND PROMOTION PLAN

0
18. The authority citation for 7 CFR part 1210 continues to read as
follows:

Authority: 7 U.S.C. 4901-4916 and 7 U.S.C. 7401.

0
19. In Sec. 1210.516, revise paragraphs (a), (b), (c), (d), (f), and
(h) to read as follows:

Sec. 1210.516 Exemption for organic watermelons.

(a) A producer or handler who operates under an approved National
Organic Program (7 CFR part 205) (NOP) organic production system plan
may be exempt from the payment of assessments under this part provided
that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a producer or
handler regardless of whether the agricultural commodity subject to the
exemption is produced or handled by a person that

[[Page 75021]]

also produces or handles conventional or non-organic agricultural
products of the same agricultural commodity as that for which the
exemption is claimed;
(3) The producer or handler maintains a valid certificate of
organic operation as issued under the Organic Foods Production Act of
1990 (7 U.S.C. 6501-6522) (OFPA) and the NOP regulations issued under
the OFPA (7 CFR part 205); and
(4) Any producer or handler so exempted shall continue to be
obligated to pay assessments under this part that are associated with
any agricultural products that do not qualify for an exemption under
this section.
(b) To apply for exemption under this section, an eligible producer
or handler shall submit a request to the Board on an Organic Exemption
Request Form (Form AMS-15) at any time during the year initially, and
annually thereafter on or before January 1, for as long as the producer
or handler continues to be eligible for the exemption.
(c) The request for exemption shall include the following:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(3) Certification that the applicant produces or handles organic
products eligible to be labeled ``organic'' or ``100 percent organic''
under the NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(d) If a producer or handler complies with the requirements of this
section, the Board will grant an assessment exemption and issue a
Certificate of Exemption to the producer or handler within 30 days. If
the application is disapproved, the Board will notify the applicant of
the reason(s) for disapproval within the same timeframe.
* * * * *
(f) An importer who imports products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP may be
exempt from the payment of assessments on those products. Such importer
may submit documentation to the Board and request an exemption from
assessment on certified ``organic'' or ``100 percent organic''
watermelons on an Organic Exemption Request Form (Form AMS-15) at any
time initially, and annually thereafter on or before January 1, as long
as the importer continues to be eligible for the exemption. This
documentation shall include the same information required of producers
in paragraph (c) of this section. If the importer complies with the
requirements of this section, the Board will grant the exemption and
issue a Certificate of Exemption to the importer. If Customs collects
the assessment on exempt product that is identified as ``organic'' by a
number in the Harmonized Tariff Schedule, the Board must reimburse the
exempt importer the assessments paid upon receipt of such assessments
from Customs. For all other exempt organic product for which Customs
collects the assessment, the importer may apply to the Board for a
reimbursement of assessments paid, and the importer must submit
satisfactory proof to the Board that the importer paid the assessment
on exempt organic product. Any importer so exempted shall continue to
be obligated to pay assessments under this part that are associated
with any imported agricultural products that do not qualify for an
exemption under this section.
* * * * *
(h) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.

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

0
20. The authority citation for 7 CFR part 1212 continues to read as
follows:

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

0
21. In Sec. 1212.53, revise paragraphs (b), (e), and (g) to read as
follows:

Sec. 1212.53 Exemption from assessment.

* * * * *
(b) A first handler or importer who operates under an approved
National Organic Program (7 CFR part 205) (NOP) organic system plan may
be exempt from the payment of assessments under this part provided
that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a first handler
or importer regardless of whether the agricultural commodity subject to
the exemption is handled or imported by a person that also handles or
imports conventional or non-organic agricultural products of the same
agricultural commodity as that for which the exemption is claimed;
(3) The first handler or importer maintains a valid certificate of
organic operation as issued under the Organic Foods Production Act of
1990 (7 U.S.C. 6501-6522) (OFPA) and the NOP regulations issued under
OFPA (7 CFR part 205); and
(4) Any first handler or importer so exempted shall continue to be
obligated to pay assessments under this part that are associated with
any agricultural products that do not qualify for an exemption under
this section.
(5) Persons eligible for an organic assessment exemption as
provided this section may apply for such an exemption by submitting a
request to the Board on an Organic Exemption Request Form (Form AMS-15)
at any time during the year initially, and annually thereafter on or
before January 1, as long as the first handler or importer continues to
be eligible for the exemption.
(i) A first handler or importer request for exemption shall include
the following:
(A) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(B) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(C) Certification that the applicant handles or imports organic
products eligible to be labeled ``organic'' or ``100 percent organic''
under the NOP;
(D) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(E) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(F) Such other information as may be required by the Board, with
the approval of the Secretary.

[[Page 75022]]

(ii) Upon receipt of an application, the Board shall determine
whether an exemption may be granted and issue a Certificate of
Exemption to the first handler or importer within 30 calendar days. If
the application is disapproved, the Board will notify the applicant of
the reason(s) for disapproval within the same timeframe. It is the
responsibility of the first handler or importer to retain a copy of the
certificate of exemption.
* * * * *
(e) Exempt importers shall be eligible for reimbursement of
assessments collected by Customs.
(1) Importers exempt under paragraph (a) of this section must apply
to the Board for reimbursement of any assessment paid. No interest will
be paid on the assessment collected by Customs. Requests for
reimbursement must be submitted to the Board within 90 days of the last
day of the calendar year the honey or honey products were imported.
(2) If Customs collects the assessment on exempt product under
paragraph (b) of this section that is identified as ``organic'' by a
number in the Harmonized Tariff Schedule, the Board must reimburse the
exempt importer the assessments paid upon receipt of such assessments
from Customs. For all other exempt organic product for which Customs
collects the assessment, the importer may apply to the Board for a
reimbursement of assessments paid, and the importer must submit
satisfactory proof to the Board that the importer paid the assessment
on exempt organic product.
* * * * *
(g) Any person who desires an exemption from assessments for a
subsequent calendar year shall reapply to the Board for a certificate
of exemption.
* * * * *

PART 1214--CHRISTMAS TREE PROMOTION, RESEARCH, AND INFORMATION
ORDER

0
22. The authority citation for 7 CFR part 1214 continues to read as
follows:

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

0
23. In Sec. 1214.53, revise paragraph (c) to read as follows:

Sec. 1214.53 Exemption from and refunds of assessments.

* * * * *
(c) Organic. (1) A producer who domestically produces Christmas
trees under an approved National Organic Program (7 CFR part 205) (NOP)
organic production system plan may be exempt from the payment of
assessments under this part provided that:
(i) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(ii) The exemption shall apply to all certified ``organic'' or
``100 percent organic'' (as defined in the NOP) products of a producer
regardless of whether the agricultural commodity subject to the
exemption is produced by a person that also produces conventional or
non-organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(iii) The producer maintains a valid certificate of organic
operation as issued under the Organic Foods Production Act of 1990 (7
U.S.C. 6501-6522) (OFPA) and the NOP regulations issued under OFPA (7
CFR part 205); and
(iv) Any producer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any agricultural
products that do not qualify for an exemption under this section.
(2) To apply for exemption under this section, an eligible producer
shall submit a request to the Board on an Organic Exemption Request
Form (Form AMS-15) at any time during the year initially, and annually
thereafter on or before the start of the fiscal period, for as long as
the producer continues to be eligible for the exemption.
(3) A producer request for exemption shall include the following:
(i) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(ii) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(iii) Certification that the applicant produces organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(iv) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent;
(v) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(vi) Such other information as may be required by the Board, with
the approval of the Secretary.
(4) If a producer complies with the requirements of this section,
the Board will grant an assessment exemption and issue a Certificate of
Exemption to the producer within 30 days. If the application is
disapproved, the Board will notify the applicant of the reason(s) for
disapproval within the same timeframe.
(5) An importer who imports Christmas trees that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP may be
exempt from the payment of assessments. Such importer may submit
documentation to the Board and request an exemption from assessment on
certified ``organic'' or ``100 percent organic'' Christmas trees on an
Organic Exemption Request Form (Form AMS-15) at any time initially, and
annually thereafter on or before the beginning of the fiscal period, as
long as the importer continues to be eligible for the exemption. This
documentation shall include the same information required of a producer
in paragraph (c)(3) of this section. If the importer complies with the
requirements of this section, the Board will grant the exemption and
issue a Certificate of Exemption to the importer within the applicable
timeframe. Any importer so exempted shall continue to be obligated to
pay assessments under this part that are associated with any imported
agricultural products that do not qualify for an exemption under this
section.
(6) If Customs collects the assessment on exempt product under
paragraph (c)(5) of this section that is identified as ``organic'' by a
number in the Harmonized Tariff Schedule, the Board must reimburse the
exempt importer the assessments paid upon receipt of such assessments
from Customs. For all other exempt organic product for which Customs
collects the assessment, the importer may apply to the Board for a
reimbursement of assessments paid, and the importer must submit
satisfactory proof to the Board that the importer paid the assessment
on exempt organic product.
(7) The exemption will apply immediately following the issuance of
the Certificate of Exemption.

PART 1215--POPCORN PROMOTION, RESEARCH, AND CONSUMER INFORMATION

0
24. The authority citation for 7 CFR part 1215 continues to read as
follows:

Authority: 7 U.S.C. 7481-7491 and 7 U.S.C. 7401.

0
25. In Sec. 1215.52, revise paragraph (b) to read as follows:

Sec. 1215.52 Exemption from assessment.

* * * * *
(b) Persons that operate under an approved National Organic Program
(7 CFR part 205) (NOP) organic handling system plan may be exempt from
the payment of assessments provided that:

[[Page 75023]]

(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a processor
regardless of whether the agricultural commodity subject to the
exemption is processed by a person that also processes conventional or
non-organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(3) The processor maintains a valid certificate of organic
operation as issued under the Organic Foods Production Act of 1990 (7
U.S.C. 6501-6522) (OFPA) and the NOP regulations issued under OFPA (7
CFR part 205); and
(4) Any processor so exempted shall continue to be obligated to pay
assessments under this part that are associated with any agricultural
products that do not qualify for an exemption under this section.
* * * * *
0
26. In Sec. 1215.300:
0
a. Revise paragraph (b);
0
b. Redesignate paragraphs (c) through (f) as paragraphs (d) through
(g), respectively;
0
c. Add paragraph (c); and
0
d. Revise newly redesignated paragraph (d).
The revisions and addition read as follows:

Sec. 1215.300 Exemption procedures.

* * * * *
(b) Persons eligible for an organic assessment exemption as
provided in Sec. 1215.52(b) may apply for such an exemption by
submitting a request to the Board on an Organic Exemption Request Form
(Form AMS-15) at any time during the year initially, and annually
thereafter on or before January 1, as long as the processor continues
to be eligible for the exemption.
(c) A processor request for exemption shall include the following:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(3) Certification that the applicant processes organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(d) Upon receipt of an application, the Board shall determine
whether an exemption may be granted and issue a Certificate of
Exemption to the processor within 30 calendar days. If the application
is disapproved, the Board will notify the applicant of the reason(s)
for disapproval within the same timeframe.
* * * * *

PART 1216--PEANUT PROMOTION, RESEARCH, AND INFORMATION ORDER

0
27. The authority citation for 7 CFR part 1216 continues to read as
follows:

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

0
28. In Sec. 1216.56, revise paragraphs (a), (b), (c), (d), and (g) to
read as follows:

Sec. 1216.56 Exemption for organic peanuts.

PART 1217--SOFTWOOD LUMBER RESEARCH, PROMOTION, CONSUMER EDUCATION
AND INDUSTRY INFORMATION ORDER

0
29. The authority citation for 7 CFR part 1217 continues to read as
follows:

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

0
30. In Sec. 1217.53, revise paragraph (d) to read as follows:

Sec. 1217.53 Exemption from assessment.

* * * * *

[[Page 75024]]

(d) Organic. (1) A domestic manufacturer of softwood lumber
products who operates under an approved National Organic Program (7 CFR
part 205) (NOP) organic handling system plan may be exempt from the
payment of assessments under this part provided that:
(i) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(ii) The exemption shall apply to all certified ``organic'' or
``100 percent organic'' (as defined in the NOP) products of a
manufacturer regardless of whether the agricultural commodity subject
to the exemption is manufactured by a person that also manufactures
conventional or non-organic agricultural products of the same
agricultural commodity as that for which the exemption is claimed;
(iii) The manufacturer maintains a valid certificate of organic
operation as issued under the Organic Foods Production Act of 1990 (7
U.S.C. 6501-6522) (OFPA) and the NOP regulations issued under OFPA (7
CFR part 205); and
(iv) Any manufacturer so exempted shall continue to be obligated to
pay assessments under this part that are associated with any
agricultural products that do not qualify for an exemption under this
section.
(2) To apply for exemption under this section, an eligible
manufacturer shall submit a request to the Board on an Organic
Exemption Request Form (Form AMS-15) at any time during the year
initially, and annually thereafter on or before the start of the fiscal
year, for as long as the manufacturer continues to be eligible for the
exemption.
(3) A manufacturer request for exemption shall include the
following:
(i) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(ii) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(iii) Certification that the applicant manufactures organic
products eligible to be labeled ``organic'' or ``100 percent organic''
under the NOP;
(iv) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(v) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(vi) Such other information as may be required by the Board, with
the approval of the Secretary.
(4) If a manufacturer complies with the requirements of this
section, the Board will grant an assessment exemption and issue a
Certificate of Exemption to the manufacturer within 30 calendar days.
If the application is disapproved, the Board will notify the applicant
of the reason(s) for disapproval within the same timeframe.
(5) An importer who imports softwood lumber that is eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP may be
exempt from the payment of assessments. Such importer may submit
documentation to the Board and request an exemption from assessment on
certified ``organic'' or ``100 percent organic'' softwood lumber on an
Organic Exemption Request Form (Form AMS-15) at any time initially, and
annually thereafter on or before the beginning of the fiscal year, as
long as the importer continues to be eligible for the exemption. This
documentation shall include the same information required of a
manufacturer in paragraph (d)(3) of this section. If the importer
complies with the requirements of this section, the Board will grant
the exemption and issue a Certificate of Exemption to the importer
within the applicable timeframe. Any importer so exempted shall
continue to be obligated to pay assessments under this part that are
associated with any imported agricultural products that do not qualify
for an exemption under this section.
(6) If Customs collects the assessment on exempt product under
paragraph (d)(5) of this section that is identified as ``organic'' by a
number in the Harmonized Tariff Schedule, the Board must reimburse the
exempt importer the assessments paid upon receipt of such assessments
from Customs. For all other exempt organic product for which Customs
collects the assessment, the importer may apply to the Board for a
reimbursement of assessments paid, and the importer must submit
satisfactory proof to the Board that the importer paid the assessment
on exempt organic product.
(7) The exemption will apply immediately following the issuance of
a Certificate of Exemption.

PART 1218--BLUEBERRY PROMOTION, RESEARCH, AND INFORMATION ORDER

0
31. The authority citation for 7 CFR part 1218 continues to read as
follows:

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

0
32. In Sec. 1218.53:
0
a. Revise paragraphs (c) and (d);
0
b. Redesignate paragraphs (e) through (k) as paragraphs (g) through
(m), respectively;
0
c. Add paragraphs (e) and (f); and
0
d. Revise newly redesignated paragraphs (g), (i), and (k).
The revisions and addition read as follows:

Sec. 1218.53 Exemption procedures.

* * * * *
(c) A producer who operates under an approved National Organic
Program (7 CFR part 205) (NOP) organic production system plan may be
exempt from the payment of assessments under this part provided that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a producer
regardless of whether the agricultural commodity subject to the
exemption is produced by a person that also produces conventional or
non-organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(3) The producer maintains a valid certificate of organic operation
as issued under the Organic Foods Production Act of 1990 (7 U.S.C.
6501-6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part
205); and
(4) Any producer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any agricultural
products that do not qualify for an exemption under this section.
(d) To apply for exemption under this section, a producer shall
submit a request to the Council on an Organic Exemption Request Form
(Form AMS-15) at any time during the year initially, and annually
thereafter on or before January 1, for as long as the producer
continues to be eligible for the exemption.
(e) A producer request for exemption shall include the following:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(3) Certification that the applicant produces organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;

[[Page 75025]]

(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Council, with
the approval of the Secretary.
(f) If a producer complies with the requirements of this section,
the Council will grant an assessment exemption and issue a Certificate
of Exemption to the producer within 30 days. If the application is
disapproved, the Council will notify the applicant of the reason(s) for
disapproval within the same timeframe.
(g) An importer who imports products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP may be
exempt from the payment of assessments on those products. Such importer
may submit documentation to the Council and request an exemption from
assessment on certified ``organic'' or ``100 percent organic''
blueberries on an Organic Exemption Request Form (Form AMS-15) at any
time initially, and annually thereafter on or before January 1, as long
as the importer continues to be eligible for the exemption. This
documentation shall include the same information required of producers
in paragraph (e) of this section. If the importer complies with the
requirements of this section, the Council will grant the exemption and
issue a Certificate of Exemption to the importer. If Customs and Border
Protection (Customs) collects the assessment on exempt product that is
identified as ``organic'' by a number in the Harmonized Tariff
Schedule, the Council must reimburse the exempt importer the
assessments paid upon receipt of such assessments from Customs. For all
other exempt organic product for which Customs collects the assessment,
the importer may apply to the Council for a reimbursement of
assessments paid, and the importer must submit satisfactory proof to
the Council that the importer paid the assessment on exempt organic
product. Any importer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any imported
agricultural products that do not qualify for an exemption under this
section.
* * * * *
(i) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.
* * * * *
(k) Importers who are exempt from payment of assessments shall be
eligible for reimbursement of assessments collected by Customs and may
apply to the Council for a reimbursement of such assessments paid. No
interest will be paid on assessments collected by Customs. Requests for
reimbursement shall be submitted to the Council within 90 days of the
last day of the year the blueberries were actually imported.
* * * * *

PART 1219--HASS AVOCADO PROMOTION, RESEARCH, AND INFORMATION

0
33. The authority citation for 7 CFR part 1219 continues to read as
follows:

Authority: 7 U.S.C. 7801-7813 and 7 U.S.C. 7401.

0
34. In Sec. 1219.202, revise paragraphs (a), (b), (c), (d), (f), and
(h) to read as follows:

Sec. 1219.202 Exemption for organic Hass avocados.

[[Page 75026]]

Certificate of Exemption to the importer. If Customs collects the
assessment on exempt product that is identified as ``organic'' by a
number in the Harmonized Tariff Schedule, the Board must reimburse the
exempt importer the assessments paid upon receipt of such assessments
from Customs. For all other exempt organic product for which Customs
collects the assessment, the importer may apply to the Board for a
reimbursement of assessments paid, and the importer must submit
satisfactory proof to the Board that the importer paid the assessment
on exempt organic product. Any importer so exempted shall continue to
be obligated to pay assessments under this part that are associated
with any imported agricultural products that do not qualify for an
exemption under this section.
* * * * *
(h) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.

PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION

0
35. The authority citation for 7 CFR part 1220 continues to read as
follows:

Authority: 7 U.S.C. 6301-6311 and 7 U.S.C. 7401.

0
36. In Sec. 1220.302, revise paragraphs (a), (b), (c), (d), and (g) to
read as follows:

Sec. 1220.302 Exemption.

PART 1221--SORGHUM PROMOTION, RESEARCH, AND INFORMATION ORDER

0
37. The authority citation for 7 CFR part 1221 continues to read as
follows:

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

0
38. In Sec. 1221.117, revise paragraphs (g), (h), (i), (j), and (m) to
read as follows:

Sec. 1221.117 Exemptions.

* * * * *
(g) A producer or importer who operates under an approved National
Organic Program (7 CFR part 205) (NOP) organic production or handling
system plan may be exempt from the payment of assessments under this
part provided that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a producer or
importer regardless of whether the agricultural commodity subject to
the exemption is produced or imported by a person that also produces or
imports conventional or non-organic agricultural products of the same
agricultural commodity as that for which the exemption is claimed;
(3) The producer or importer maintains a valid certificate of
organic operation as issued under the Organic Foods Production Act of
1990 (7 U.S.C. 6501-6522) (OFPA) and the NOP regulations issued under
OFPA (7 CFR part 205); and
(4) Any producer or importer so exempted shall continue to be
obligated to pay assessments under this part that are associated with
any agricultural products that do not qualify for an exemption under
this section.
(h) To apply for an exemption under this section, the applicant
shall submit a request to the Board on an Organic Exemption Request
Form (Form AMS-15) at any time during the year initially, and annually
thereafter on or before January 1, for as long as the producer or
importer continues to be eligible for the exemption.
(i) A producer or importer request for exemption shall include the
following:
(1) The applicant's full name, company name, address, telephone and

[[Page 75027]]

fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(3) Certification that the applicant produces or imports organic
products eligible to be labeled ``organic'' or ``100 percent organic''
under the NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(j) If the applicant complies with the requirements of this
section, the Board will grant an assessment exemption and issue a
Certificate of Exemption to the producer or importer within 30 days. If
the application is disapproved, the Board will notify the applicant of
the reason(s) for disapproval within the same timeframe.
* * * * *
(m) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.

PART 1222--PAPER AND PAPER-BASED PACKAGING PROMOTION, RESEARCH AND
INFORMATION ORDER

0
39. The authority citation for 7 CFR part 1222 continues to read as
follows:

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

0
40. In Sec. 1222.53, revise paragraph (b) to read as follows:

Sec. 1222.53 Exemption from assessment.

* * * * *
(b) Organic. (1) A manufacturer who operates under an approved
National Organic Program (7 CFR part 205) (NOP) organic handling system
plan may be exempt from the payment of assessments under this part
provided that:
(i) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(ii) The exemption shall apply to all certified ``organic'' or
``100 percent organic'' (as defined in the NOP) products of a
manufacturer regardless of whether the agricultural commodity subject
to the exemption is manufactured by a person that also manufactures
conventional or non-organic agricultural products of the same
agricultural commodity as that for which the exemption is claimed;
(iii) The manufacturer maintains a valid certificate of organic
operation as issued under the Organic Foods Production Act of 1990 (7
U.S.C. 6501-6522) (OFPA) and the NOP regulations issued under OFPA (7
CFR part 205); and
(iv) Any manufacturer so exempted shall continue to be obligated to
pay assessments under this part that are associated with any
agricultural products that do not qualify for an exemption under this
section.
(2) To apply for exemption under this section, an eligible
manufacturer shall submit a request to the Board on an Organic
Exemption Request Form (Form AMS-15) at any time during the year
initially, and annually thereafter on or before the start of the fiscal
year, as long as the manufacturer continues to be eligible for the
exemption.
(3) A manufacturer request for exemption shall include the
following:
(i) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(ii) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(iii) Certification that the applicant manufactures organic
products eligible to be labeled ``organic'' or ``100 percent organic''
under the NOP;
(iv) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(v) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(vi) Such other information as may be required by the Board, with
the approval of the Secretary.
(4) If a manufacturer complies with the requirements of this
section, the Board will grant an assessment exemption and issue a
Certificate of Exemption to the manufacturer within 30 calendar days.
If the application is disapproved, the Board will notify the applicant
of the reason(s) for disapproval within the same timeframe.
(5) An importer who imports paper and paper-based packaging that is
eligible to be labeled as ``organic'' or ``100 percent organic'' under
the NOP may be exempt from the payment of assessments. Such importer
may submit documentation to the Board and request an exemption from
assessment on certified ``organic'' or ``100 percent organic'' paper
and paper-based packaging on an Organic Exemption Request Form (Form
AMS-15) at any time initially, and annually thereafter on or before the
beginning of the fiscal year, as long as the importer continues to be
eligible for the exemption. This documentation shall include the same
information required of a manufacturer in paragraph (b)(3) of this
section. If the importer complies with the requirements of this
section, the Board will grant the exemption and issue a Certificate of
Exemption to the importer within the applicable timeframe. Any importer
so exempted shall continue to be obligated to pay assessments under
this part that are associated with any imported agricultural products
that do not qualify for an exemption under this section.
(6) If Customs collects the assessment on exempt product under
paragraph (b)(5) of this section that is identified as ``organic'' by a
number in the Harmonized Tariff Schedule, the Board must reimburse the
exempt importer the assessments paid upon receipt of such assessments
from Customs. For all other exempt organic product for which Customs
collects the assessment, the importer may apply to the Board for a
reimbursement of assessments paid, and the importer must submit
satisfactory proof to the Board that the importer paid the assessment
on exempt organic product.
(7) The exemption will apply immediately following the issuance of
a Certificate of Exemption.

PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION

0
41. The authority citation for 7 CFR part 1230 continues to read as
follows:

Authority: 7 U.S.C. 4801-4819 and 7 U.S.C. 7401.

0
42. In Sec. 1230.102, revise paragraphs (a), (b), (c), (d), (g), and
(i) and add paragraph (j) to read as follows:

Sec. 1230.102 Exemption.

(a) A producer who operates under an approved National Organic
Program (7 CFR part 205) (NOP) organic production system plan may be
exempt from the

[[Page 75028]]

payment of assessments under this part provided that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a producer
regardless of whether the agricultural commodity subject to the
exemption is produced by a person that also produces conventional or
non-organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(3) The producer maintains a valid certificate of organic operation
as issued under the Organic Foods Production Act of 1990 (7 U.S.C.
6501-6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part
205); and
(4) Any producer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any agricultural
products that do not qualify for an exemption under this section.
(b) To apply for exemption under this section, a producer shall
submit a request to the Board on an Organic Exemption Request Form
(Form AMS-15) at any time during the year initially, and annually
thereafter on or before January 1, for as long as the producer
continues to be eligible for the exemption.
(c) A producer request for exemption shall include the following:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(3) Certification that the applicant produces organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(d) If a producer complies with the requirements of this section,
the Board will grant an assessment exemption and issue a Certificate of
Exemption to the producer within 30 days. If the application is
disapproved, the Board will notify the applicant of the reason(s) for
disapproval within the same timeframe.
* * * * *
(g) An importer who imports products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP may be
exempt from the payment of assessments on those products. Such importer
may submit documentation to the Board and request an exemption from
assessment on certified ``organic'' or ``100 percent organic'' porcine
animals or pork and pork products on an Organic Exemption Request Form
(Form AMS-15) at any time initially, and annually thereafter on or
before January 1, as long as the importer continues to be eligible for
the exemption. This documentation shall include the same information
required of producers in paragraph (c) of this section. If the importer
complies with the requirements of this section, the Board will grant
the exemption and issue a Certificate of Exemption to the importer. The
Board will also issue the importer an alphanumeric number valid for 1
year from the date of issue. This alphanumeric number should be entered
by the importer on the Customs entry documentation. Any line item entry
of ``organic'' or ``100 percent organic'' porcine animals or pork and
pork products bearing this alphanumeric number assigned by the Board
will not be subject to assessments. Any importer so exempted shall
continue to be obligated to pay assessments under this part that are
associated with any imported agricultural products that do not qualify
for an exemption under this section.
* * * * *
(i) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.
(j) An importer who is exempt from payment of assessments under
paragraph (g) of this section shall be eligible for reimbursement of
assessments collected by Customs on certified ``organic'' or ``100
percent organic'' porcine animals or pork and pork products and may
apply to the Secretary for a reimbursement. The importer would be
required to submit satisfactory proof to the Secretary that the
importer paid the assessment on exempt organic products.

PART 1250--EGG RESEARCH AND PROMOTION

0
43. The authority citation for 7 CFR part 1250 continues to read as
follows:

Authority: 7 U.S.C. 2701-2718 and 7 U.S.C. 7401.

0
44. In Sec. 1250.530, revise paragraph (b) to read as follows:

Sec. 1250.530 Certification of exempt producers.

* * * * *
(b) Organic Production. (1) A producer who operates under an
approved National Organic Program (7 CFR part 205) (NOP) organic
production system plan may be exempt from the payment of assessments
under this part provided that:
(i) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(ii) The exemption shall apply to all certified ``organic'' or
``100 percent organic'' (as defined in the NOP) products of a producer
regardless of whether the agricultural commodity subject to the
exemption is produced by a person that also produces conventional or
non-organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(iii) The producer maintains a valid certificate of organic
operation as issued under the Organic Foods Production Act of 1990 (7
U.S.C. 6501-6522) (OFPA) and the NOP regulations issued under OFPA (7
CFR part 205); and
(iv) Any producer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any agricultural
products that do not qualify for an exemption under this section.
(2) To apply for exemption under this section, a producer shall
submit a request to the Board on an Organic Exemption Request Form
(Form AMS-15) at any time during the year initially, and annually
thereafter on or before January 1, for as long the producer continues
to be eligible for the exemption.
(3) A producer request for exemption shall include the following:
(i) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(ii) Certification that the applicant maintains a valid certificate
of organic

[[Page 75029]]

operation issued under the OFPA and the NOP;
(iii) Certification that the applicant produces organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(iv) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(v) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(vi) Such other information as may be required by the Board, with
the approval of the Secretary.
(4) If a producer complies with the requirements of this section,
the Board will grant an assessment exemption and issue a Certificate of
Exemption to the producer within 30 days. If the application is
disapproved, the Board will notify the applicant of the reason(s) for
disapproval within the same timeframe.
(5) The producer shall provide a copy of the Certificate of
Exemption to each handler to whom the producer sells eggs. The handler
shall maintain records showing the exempt producer's name and address
and the exemption number assigned by the Board.
(6) The exemption will apply at the first reporting period
following the issuance of the Certificate of Exemption.
(7) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.
* * * * *

PART 1260--BEEF PROMOTION AND RESEARCH

0
45. The authority citation for 7 CFR part 1260 continues to read as
follows:

Authority: 7 U.S.C. 2901-2911 and 7 U.S.C. 7401.

0
46. In Sec. 1260.302, revise paragraphs (a), (b), (c), (d), (g), and
(i) and add paragraph (j) to read as follows:

Sec. 1260.302 Organic exemption.

(a) A producer who operates under an approved National Organic
Program (7 CFR part 205) (NOP) organic production system plan may be
exempt from the payment of assessments under this part provided that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a producer
regardless of whether the agricultural commodity subject to the
exemption is produced by a person that also produces conventional or
non-organic agricultural products of the same agricultural commodity as
that for which the exemption is claimed;
(3) The producer maintains a valid certificate of organic operation
as issued under the Organic Foods Production Act of 1990 (7 U.S.C.
6501-6522) (OFPA) and the NOP regulations issued under OFPA (7 CFR part
205); and
(4) Any producer so exempted shall continue to be obligated to pay
assessments under this part that are associated with any agricultural
products that do not qualify for an exemption under this section.
(b) To apply for exemption under this section, a producer shall
submit a request to the Board or QSBC on an Organic Exemption Request
Form (Form AMS-15) at any time during the year initially, and annually
thereafter on or before January 1, for as long as the producer
continues to be eligible for the exemption.
(c) A producer request for exemption shall include the following:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(3) Certification that the applicant produces organic products
eligible to be labeled ``organic'' or ``100 percent organic'' under the
NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(d) If a producer complies with the requirements of this section,
the Board or QSBC will grant an assessment exemption and issue a
Certificate of Exemption to the producer within 30 days. If the
application is disapproved, the Board or QSBC will notify the applicant
of the reason(s) for disapproval within the same timeframe.
* * * * *
(g) An importer who imports products that are eligible to be
labeled as ``organic'' or ``100 percent organic'' under the NOP may be
exempt from the payment of assessments on those products. Such importer
may submit documentation to the Board and request an exemption from
assessment on certified ``organic'' or ``100 percent organic'' cattle
or beef and beef products on an Organic Exemption Request Form (Form
AMS-15) at any time initially, and annually thereafter on or before
January 1, as long as the importer continues to be eligible for the
exemption. This documentation shall include the same information
required of producers in paragraph (c) of this section. If the importer
complies with the requirements of this section, the Board will grant
the exemption and issue a Certificate of Exemption to the importer. The
Board will also issue the importer an alphanumeric number valid for 1
year from the date of issue. This alphanumeric number should be entered
by the importer on the Customs entry documentation. Any line item entry
of ``organic'' or ``100 percent organic'' cattle or beef and beef
products bearing this alphanumeric number assigned by the Board will
not be subject to assessments. Any importer so exempted shall continue
to be obligated to pay assessments under this part that are associated
with any imported agricultural products that do not qualify for an
exemption under this section.
* * * * *
(i) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.
(j) An importer who is exempt from payment of assessments under
paragraph (g) of this section shall be eligible for reimbursement of
assessments collected by Customs on certified ``organic'' or ``100
percent organic'' cattle or beef and beef products and may apply to the
Secretary for a reimbursement. The importer would be required to submit
satisfactory proof to

[[Page 75030]]

the Secretary that the importer paid the assessment on exempt organic
products.

PART 1280--LAMB PROMOTION, RESEARCH, AND INFORMATION ORDER

0
47. The authority citation for 7 CFR part 1280 continues to read as
follows:

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

0
48. In Sec. 1280.406, revise paragraphs (a), (b), (c), (d), and (h) to
read as follows:

Sec. 1280.406 Exemption.

(a) A producer, seed stock producer, feeder, handler, or exporter
who operates under an approved National Organic Program (7 CFR part
205) (NOP) organic production or handling system plan may be exempt
from the payment of assessments under this part provided that:
(1) Only agricultural products certified as ``organic'' or ``100
percent organic'' (as defined in the NOP) are eligible for exemption;
(2) The exemption shall apply to all certified ``organic'' or ``100
percent organic'' (as defined in the NOP) products of a producer,
handler, or exporter regardless of whether the agricultural commodity
subject to the exemption is produced, handled, or exported by a person
that also produces, handles, or exports conventional or non-organic
agricultural products of the same agricultural commodity as that for
which the exemption is claimed;
(3) The producer, handler, or exporter maintains a valid
certificate of organic operation as issued under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501-6522) (OFPA) and the NOP
regulations issued under OFPA (7 CFR part 205); and
(4) Any person so exempted shall continue to be obligated to pay
assessments under this part that are associated with any agricultural
products that do not qualify for an exemption under this section.
(b) To apply for exemption under this section, the person shall
submit a request to the Board on an Organic Exemption Request Form
(Form AMS-15) at any time during the year initially, and annually
thereafter on or before January 1, for as long as the producer
continues to be eligible for the exemption.
(c) The request for exemption shall include the following:
(1) The applicant's full name, company name, address, telephone and
fax numbers, and email address (optional);
(2) Certification that the applicant maintains a valid certificate
of organic operation issued under the OFPA and the NOP;
(3) Certification that the applicant produces, handles, or exports
organic products eligible to be labeled ``organic'' or ``100 percent
organic'' under the NOP;
(4) A requirement that the applicant attach a copy of their
certificate of organic operation issued by a USDA-accredited certifying
agent under the OFPA and the NOP;
(5) Certification, as evidenced by signature and date, that all
information provided by the applicant is true; and
(6) Such other information as may be required by the Board, with
the approval of the Secretary.
(d) If a person complies with the requirements of this section, the
Board will grant an assessment exemption and issue a Certificate of
Exemption to the applicant within 30 days. If the application is
disapproved, the Board will notify the applicant of the reason(s) for
disapproval within the same timeframe.
* * * * *
(h) Agricultural commodities produced and marketed under an organic
system plan, as described in 7 CFR 205.201, but not sold, labeled, or
represented as organic, shall not disqualify a producer from exemption
under this section. Reasons for conventional sales include lack of
demand for organic products, isolated use of antibiotics for humane
purposes, chemical or pesticide use as the result of State or emergency
spray programs, and crops from a buffer area as described in 7 CFR part
205, provided all other criteria are met.

Dated: December 10, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-29280 Filed 12-15-14; 8:45 am]
BILLING CODE 3410-02-P

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