Vol. 79 Tuesday, 

No. 241 December 16, 2014 

Part VI 

Department of Agriculture 

Agicultural Marketing Service 

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

Exemption of Organic Products from Assessment Under a Commodity 

Promotion Law; Proposed Rule 

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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 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

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: http://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: http://

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, 

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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 

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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. 

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 

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, 

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 

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(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 × 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 

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75010 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules 

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. 

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 × 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. 

• 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 

§ 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 

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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 

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 

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 

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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 

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Current Estimated 

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 Paperbased 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 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. 

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 

1No 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 

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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. 

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 

■ 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. 

■ 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, 

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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 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 

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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: 

§ 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; 

(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 

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 

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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: 

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 

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 

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 

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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: 

§ 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 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 

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 Exemption for organic 

potatoes. 

(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. 

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(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 

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 

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 

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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: 

§ 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 

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 

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 

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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 

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 

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. 

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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: 

§ 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 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) 

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: 

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(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. 

* * * * * 

(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 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) 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 

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. 

* * * * * 

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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 

(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. 

■ 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; 

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Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Proposed Rules 75025 

(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 

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 

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 

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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: 

§ 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 

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 

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 

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

§ 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 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 

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 

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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 

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 

■ 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 

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

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 

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, 

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 

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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. 

(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; 

(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 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 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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