22690 Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 1150, 1160, 1205, 1207, 

1209, 1210, 1215, 1216, 1218, 1219, 

1220, 1230, 1240, 1250, 1260, and 1280 

[Docket No. PY–02–006] 

RIN 0581–AC15 

Proposed Rule To Exempt Organic 

Producers From Assessment by 

Research and Promotion Programs 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

exempt any person producing and 

marketing solely 100 percent organic 

products from paying assessments to 

any research and promotion program 

administered by the Agricultural 

Marketing Service (AMS). A proposed 

rule to exempt any person producing 

and marketing solely 100 percent 

organic products from paying 

assessments to certain marketing order 

programs administered by AMS was 

published previously in the Federal 

Register. 

DATES: Comments must be received by 

May 26, 2004. Pursuant to the 

Paperwork Reduction Act, comments on 

the information collection burden that 

would result from this proposal must be 

received by June 25, 2004. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposed rule to Angela 

C. Snyder, Office of the Deputy 

Administrator, Poultry Programs, 

Agricultural Marketing Service, U.S. 

Department of Agriculture, 1400 

Independence Avenue, SW.; STOP 

0256, Room 3932—South; Washington, 

DC 20250. Comments should be 

submitted in duplicate. Comments may 

also be submitted electronically to: 

organicassessment@usda.gov or 

www.regulations.gov. All comments 

should reference the docket number and 

the date and page number of this issue 

of the Federal Register. All comments 

received will be made available for 

public inspection at Poultry Programs, 

AMS, USDA, Room 3932—South; 1400 

Independence Avenue, SW.; 

Washington, DC 20250 during regular 

business hours. A copy of this proposed 

rule may be found at: http:// 

www.ams.usda.gov/2002farmbill/ 

organicexempt. 

Pursuant to the Paperwork Reduction 

Act (PRA), send comments regarding the 

accuracy of the burden estimate, ways to 

minimize the burden, including the use 

of automated collection techniques or 

other forms of information technology, 

or any other aspect of this collection of 

information to the above address. 

Comments concerning the information 

collection under the PRA should also be 

sent to the Desk Officer for Agriculture, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Washington, DC 20503. 

FOR FURTHER INFORMATION CONTACT: 

Angela C. Snyder, Office of the Deputy 

Administrator, Poultry Programs, 

Agricultural Marketing Service, U.S. 

Department of Agriculture, 1400 

Independence Avenue, SW.; STOP 

0256, Room 3932—South; Washington, 

DC 20250; (202) 720–4476; (202) 720– 

5631 (fax); or e-mail at 

organicassessment@usda.gov. 

SUPPLEMENTARY INFORMATION:

Executive Order 12866 

This proposed rule has been 

determined to be ‘‘not significant’’ for 

purposes of Executive Order 12866 and 

therefore has not been reviewed by the 

Office of Management and Budget. 

Executive Order 12988 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. It is not intended to 

have retroactive effect. This proposed 

rule would not preempt any state or 

local laws, regulations, or policies, 

unless they present an irreconcilable 

conflict with this rule. 

The Commodity Promotion, Research, 

and Information Act of 1996; Cotton 

Research and Promotion Act; Dairy 

Production Stabilization Act of 1983; 

Egg Research and Consumer Information 

Act; Fluid Milk Promotion Act of 1990; 

Hass Avocado Promotion, Research, and 

Information Act of 2000; Honey 

Research, Promotion, and Consumer 

Information Act; Mushroom Promotion, 

Research, and Consumer Information 

Act of 1990; Popcorn Promotion, 

Research, and Consumer Information 

Act; Pork Promotion, Research, and 

Consumer Information Act of 1985; 

Potato Research and Promotion Act; 

Soybean Promotion, Research, and 

Consumer Information Act; and 

Watermelon Research and Promotion 

Act provide that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

these 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 

inhabitant, or has his principal place of 

business, has jurisdiction to review the 

Secretary’s ruling, provided a complaint 

is filed within 20 days from the date of 

the entry of ruling. There are no 

administrative proceedings that must be 

exhausted prior to any judicial 

challenge to the provisions of the Beef 

Promotion and Research Act of 1985. 

Background 

Section 10607 of the Farm Security 

and Rural Investment Act of 2002 (Pub. 

L. 107–171)—known as the 2002 Farm 

Bill—amended Section 501 of the 

Federal Agriculture Improvement and 

Reform Act of 1996 (7 U.S.C. 7401) 

(FAIR Act) on May 13, 2002. The 

amendment exempts any person that 

produces and markets solely 100 

percent organic products, and that does 

not produce any conventional or 

nonorganic products, from paying 

assessments under a commodity 

promotion law with respect to any 

agricultural commodity that is produced 

on a certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

The U.S. Department of Agriculture is 

proposing amendments to the orders 

and/or rules and regulations of the 16 

research and promotion programs for 

which it has oversight. These 

amendments will establish a provision 

for organic producers and marketers 

meeting the specified criteria and 

procedures to be exempt from paying 

assessments for research and promotion. 

The Department proposed amendments 

to the general regulations affecting 28 

marketing order programs in a separate 

rule published in the December 2, 2003, 

Federal Register [68 FR 67381]. The 

comment period for this proposed rule 

ended on February 2, 2004. The 

comments received in that rulemaking 

currently are being reviewed by AMS. 

The FAIR Act amendment covers 

research and promotion programs 

established under either freestanding 

legislation (beef, cotton, eggs, fluid milk, 

dairy, Hass avocados, honey, 

mushrooms, popcorn, pork, potatoes, 

soybeans, and watermelons) or the 

Commodity Promotion, Research, and 

Information Act of 1996 (blueberries, 

lamb, and peanuts). 

The FAIR Act amendment would also 

cover a program for mangos, once one 

is established. The mango industry has 

requested a program, and rulemaking is 

ongoing. A second proposed rule on the 

Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 22691 

Mango Promotion, Research and 

Information Order was published in the 

October 9, 2003, issue of the Federal 

Register [68 FR 58556]. In November 

2003, first handlers and importers of 

mangos voted to approve a national 

mango promotion, research, and 

information order. A final rule would 

have to be issued before the mango 

research and promotion program could 

become effective. However, it is 

anticipated that provisions similar to 

those proposed in this document for 

Hass avocados (7 CFR part 1219) would 

be needed to exempt persons producing 

and marketing solely 100 percent 

organic products from paying 

assessments under a mango research 

and promotion program. 

Wholly industry-funded and 

-operated and charged with creating and 

expanding markets for the agricultural 

commodities they represent, these 

programs are overseen by AMS, 

including review of budgets, plans, and 

projects. Producers, handlers, importers, 

and/or others in the marketing chain 

pay assessments to these commodity 

boards to fund the programs. Industries 

voluntarily request these programs. 

Research and promotion programs allow 

industries to establish, finance, and 

carry out coordinated programs of 

research, producer and consumer 

education, and promotion to improve, 

maintain, and develop markets for their 

commodities. 

Under this proposal, language would 

be added to the orders, plans, and/or 

regulations of each program specifying 

the criteria for identifying persons 

eligible to obtain an assessment 

exemption and procedures for applying 

for an exemption. The provision would 

be tailored to each of the sixteen 

programs, all of which have structural 

and operational distinctions. The result 

would be some procedural differences 

between the programs’ regulatory 

language. For example, under the cotton 

program, producers would be required 

to reapply for exemption every year on 

or before the beginning of the crop year 

(see § 1205.519(b) of this proposal). 

Under the watermelon program, 

however, producers would reapply for 

exemption on or before January 1 of 

each year (see § 1210.516(b) of this 

proposal). 

Who Is Eligible for Exemption 

To be eligible for an exemption, the 

person must be subject to an assessment 

under a research and promotion 

program. Of the 16 research and 

promotion programs covered under this 

proposed rule, 14 assess producers. 

Most of these programs also assess other 

entities, including handlers, first 

handlers, importers, exporters, feeders, 

and seed stock producers. The 

remaining two research and promotion 

programs assess processors. 

The FAIR Act amendment specifies 

that to be exempt 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 

produce any nonorganic or conventional 

products. For purposes of this proposed 

rule, ‘‘produce’’ means 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. 

To meet this requirement, that person 

need not be just a producer. Under this 

proposed rule, producers, handlers, first 

handlers, processors, importers, 

exporters, feeders, and seed stock 

producers may be eligible for exemption 

if they meet the definition of ‘‘produce’’

as outlined in this proposed rule. 

Regardless, to be exempt, such persons 

must possess certification from a USDAaccredited certifying agent and certify 

that the farm or handling operation 

meets the requirements of 100 percent 

organic as defined in section 2103 of the 

Organic Foods Production Act of 1990 

(7 U.S.C. 6502). 

This definition of ‘‘produce’’ would be 

added to the regulatory text of all but 

four of the sixteen programs to ensure 

that non-traditional producers meeting 

the criteria and procedures may obtain 

an exemption. Four programs—dairy, 

peanuts, soybeans, and eggs—are 

strictly producer programs. Because 

traditional producers are the only 

parties assessed, it is not necessary to 

redefine ‘‘produce’’ for purposes of 

obtaining an exemption. The definition 

referenced above is only needed to 

include assessment payers other than 

non-traditional producers. 

Examples 

• A farmer grows 100 percent organic 

soybeans and 100 percent organic corn. 

The farmer is eligible for exemption 

under the soybean promotion, research, 

and consumer information program. 

• A farmer grows 100 percent organic 

soybeans and conventional corn. While 

the farmer’s soybean land may be 

certified organic as a split farm 

operation under the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502), 

the farmer is not eligible for exemption 

under the soybean promotion, research, 

and consumer information program 

because the farmer’s production is not 

solely 100 percent organic. 

• An importer imports 100 percent 

organic live cattle, feeds and grows the 

cattle, and is a certified handling 

operation. The importer is eligible for 

exemption under the beef promotion 

and research program. 

• An importer imports 100 percent 

organic boxed beef and sells it to 

another party. The importer is not 

eligible for exemption under the beef 

promotion and research program 

because the importer is not a producer 

as defined in this proposed rule. 

• An importer imports 100 percent 

organic boxed beef. The importer also 

imports 100 percent organic beef and 

processes it into ground beef. The 

importer is eligible for exemption under 

the beef promotion and research 

program. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 [44 U.S.C. 

Chapter 35], this proposed rule also 

announces that AMS is seeking 

emergency approval for a new 

information collection request enabling 

organic entities to apply for an 

exemption from paying assessments 

under the following programs: 7 CFR 

Parts 1150, 1160, 1205, 1207, 1209, 

1210, 1215, 1216, 1218, 1219, 1220, 

1230, 1240, 1250, 1260, and 1280. 

Title: Organic Producer and Marketer 

Exemption From Assessment Under 

Research and Promotion Programs. 

OMB Number: 0581–NEW. 

Type of Request: New collection. 

Abstract: Research and promotion 

program, though overseen by AMS, are 

wholly industry-funded and -operated 

and are charged with creating and 

expanding markets for the agricultural 

commodities they represent. Producers, 

handlers, importers, and/or others in the 

marketing chain pay assessments to 

these commodity boards to fund the 

programs. Research and promotion 

programs allow industries to establish, 

finance, and carry out coordinated 

programs of research, producer and 

consumer education, and promotion to 

improve, maintain, and develop markets 

for their commodities. 

On May 13, 2002, Section 501 of the 

FAIR Act was amended under the 2002 

Farm Bill to exempt any person that 

produces and markets solely 100 

percent organic products, and that does 

not produce any conventional or nonorganic products, from paying 

assessments under a commodity 

promotion law with respect to any 

agricultural commodity that is produced 

on a certified organic farm as defined in 

Section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

To be exempt from paying assessments 

22692 Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 

under a research and promotion 

program, the person would submit an 

application—‘‘Organic Exemption 

Request Form’’—to the applicable board 

or council. The form would need to be 

submitted to the board, council, or other 

party designated by the board or council 

prior to or during the initial applicable 

assessment period, and annually 

thereafter, as long as the applicant 

continues to be eligible for the 

exemption. This application would 

include the applicant’s name, name and 

address of the company, telephone and 

fax numbers, a copy of the applicant’s 

organic farm or organic handling 

operation certificate provided by a 

USDA-accredited certifying agent under 

the Organic Foods Production Act of 

1990 (7 U.S.C. 6502), and a signed 

certification that the applicant meets all 

of the requirements specified for an 

assessment exemption. If the applicant 

complies with these requirements and is 

eligible for a promotion assessment 

exemption, the board or council would 

approve the exemption and notify the 

applicant within 30 days of receiving 

the applicant’s application. If the 

application is disapproved, the board or 

council would notify the applicant of 

the reason(s) for disapproval. The 

Secretary may review any decisions 

made by the boards or councils at her 

or his discretion. 

Most of the programs require that the 

person responsible for remitting 

assessments on behalf of the exempt 

party maintain a record of that party’s 

exemption. In most cases, this is a 

handler maintaining a record of an 

exempt producer. The burdens on these 

persons for such recordkeeping 

requirements are included in the 

information collection requests 

previously approved for all of the 

programs—Hass avocados under OMB 

control number 0581–0197, beef and 

pork under 0590–0001, lamb under 

0581–0198, and the rest under 0581–

0093. 

The form’s design has been carefully 

reviewed, and every effort has been 

made to minimize any unnecessary 

recordkeeping requirements. AMS has 

determined that there is no practical 

method for collecting the required 

information without the use of this 

form. The form would be available from 

the boards and councils. In addition, an 

electronic fillable form would be made 

available. The information collection 

would be used only by authorized board 

or council employees and 

representatives of USDA, including 

AMS staff. Authorized board and 

council employees will be the primary 

users of the information, and AMS will 

be the secondary user. 

The request for approval of the new 

information collection is as follows: 

Form AMS–15, Organic Exemption 

Request Form 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 30 minutes per 

response. 

Respondents: Eligible Certified 

Organic Producers and Marketers. 

Estimated Number of Respondents: 

2,159. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 1,079.5 hours. 

Comments: Comments are invited on: 

(1) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(2) the accuracy of the agency’s estimate 

of the burden of the collection of 

information, including the validity of 

the methodology and assumptions used; 

(3) ways to enhance the quality, utility, 

and clarity of the information to be 

collected; and (4) ways to minimize the 

burden of the collection of information 

on those who are to respond, including 

the use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques of 

other forms of information technology. 

A 60-day period is provided to 

comment on the information collection 

burden. Comments should reference 

OMB No. 0581–NEW and be sent to 

organicassessment@usda.gov. All 

comments received will be available for 

public inspection during regular 

business hours at the same address. All 

responses to this proposed rule will be 

summarized and included in the request 

for OMB approval. All comments will 

become a matter of public record. 

Comments concerning the 

information collection under the PRA 

should also be sent to the Desk Officer 

for Agriculture, Office of Information 

and Regulatory Affairs, Office of 

Management and Budget, Washington, 

DC 20503. 

Regulatory Flexibility Act 

In accordance with the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.) 

(RFA), the Agricultural Marketing 

Service (AMS) has examined the impact 

of the proposed rule on small entities. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions so 

that small businesses will not be 

disproportionately burdened. 

As previously mentioned, producers, 

handlers, first handlers, processors, 

importers, exporters, feeders, and seed 

stock producers pay assessments to the 

national boards or councils that 

administer various commodity research 

and promotion programs, or in some 

cases to other parties designated by a 

board or council to collect assessments. 

Initiated as a result of the 2002 Farm 

Bill, which amended Section 501 of the 

Federal Agricultural Improvement and 

Reform Act of 1996 (FAIR Act), this 

proposed rule would exempt from 

assessment those entities that produce 

and market solely 100 percent organic 

products. 

To obtain the exemption, eligible 

producers, handlers, first handlers, 

processors, importers, exporters, 

feeders, and seed stock producers must 

submit a request for exemption to the 

appropriate board or council on a form. 

While the proposed rule would impose 

certain reporting and recordkeeping 

requirements on these entities, the form 

requires the minimum information 

necessary to effectively administer the 

exemption provision, and its use is 

necessary for compliance purposes. 

In preparing its initial regulatory 

flexibility analysis, AMS attempted to 

identify the entities that would be 

affected by the proposed rule and to 

examine the potential impact on such 

entities. However, information was not 

available to allow AMS to determine 

whether any importers would be 

covered by this proposed rule under the 

beef and pork programs. In addition, 

information was not available to allow 

AMS to identify the respondents under 

the lamb program as producers, first 

handlers, feeders, exporters, and seed 

stock producers, so AMS addressed the 

lamb program in the aggregate to 

determine the economic impact. 

The estimated respondents providing 

new information to the boards or 

councils and the burden associated with 

the information collections is as follows. 

There would be an estimated 2,159 

respondents providing new information 

to the boards or councils under the 

following programs: 

Beef: 167 producers, number of 

importers unknown (167 total). 

Blueberries: 7 producers, 0 importers 

(7 total). 

Cotton: 100 producers, 10 importers 

(110 total). 

Dairy: 600 producers. 

Eggs: 0 producers. 

Fluid milk: 0 processors. 

Hass avocados: 60 producers, 0 

importers (60 total). 

Honey: 10 producers, 0 importers (10 

total). 

Lamb: 40 respondents (including 

producers, first handlers, feeders, seed 

stock producers, and exporters). 

Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 22693 

Mushrooms: 2 producers, 0 importers 

(2 total). 

Peanuts: 54 producers. 

Popcorn: 0 processors. 

Pork: 18 producers, number of 

importers unknown (18 total). 

Potatoes: 35 producers, 0 importers 

(35 total). 

Soybeans: 1,028 producers. 

Watermelons: 27 producers, 1 

handler, 0 importers (28 total). 

No respondents were identified for 

the fluid milk, popcorn, and egg 

programs. The fluid milk and egg 

programs exempt smaller entities from 

assessment—fluid milk processors 

processing less than $3 million pounds 

and egg producers owning 75,000 or 

fewer laying hens. Among assessment 

payers, no solely 100 percent organic 

processors or producers are known; if 

they exist, they are already exempt for 

de minimis reasons. No popcorn 

processors that produce (as defined in 

this rule) solely 100 percent organic 

product were identified because of the 

current nature of the popcorn industry. 

The burden associated with the 

information collection would be 

$10,795.00 for all respondents, or $5.00 

per respondent. These totals have been 

estimated by multiplying the burden 

hours associated with the exemption 

request form by $10.00 per hour, a sum 

deemed to be reasonable should the 

respondents be compensated for their 

time. 

Under the 16 research and promotion 

programs, those assessed pay 

assessments to the boards and councils 

that administer the programs. The total 

annual collections and assessment rates 

for each board or council are as follows: 

Beef: $83.6 million; $1 per head. 

Blueberries: $1.5 million; $12 per ton. 

Cotton: $65.2 million; $1 per bale plus 

0.5 percent of the value of the lint in 

each bale. 

Dairy: $255.0 million; 15 cents per 

cwt. 

Eggs: $19.7 million; 10 cents per 30- 

dozen case of eggs. 

Fluid milk: $106.2 million; 20 cents 

per cwt. 

Hass avocados: $16.3 million; 2.5 

cents per pound. 

Honey: $3.6 million; 1 cent per 

pound. 

Lamb: $3.5 million; $0.005 per pound 

of live weight, $0.30 per head on lambs 

purchased for slaughter. 

Mushrooms: $1.7 million; .002 cents 

per pound. 

Peanuts: $6.7 million; 1 percent of the 

value of the peanuts. 

Popcorn: $558,000; 6 cents per cwt. 

Pork: $47.8 million; 0.40 percent of 

the market value. 

Potatoes: $8.6 million; 2 cents per 

cwt. 

Soybeans: $77.8 million; 1⁄2 of 1 

percent of the net market value. 

Watermelons: $1.5 million; 2 cents 

per cwt for domestic watermelons, 4 

cents per cwt for imported watermelons. 

The Small Business Administration 

[13 CFR 121.201] defines small 

agricultural producers as those having 

annual receipts of $750,000 or less 

annually and small agricultural service 

firms as those having annual receipts of 

$5 million or less. These include 

producers, feeders, and seed stock 

producers. Importers, exporters, 

handlers, and first handlers would be 

considered agricultural service firms. 

Using these criteria, most if not all of 

the agricultural producers and 

agricultural service firms covered by the 

proposed rule would be considered 

small businesses. 

The proposed rule would allow 

producers and marketers of solely 100 

percent organic products to request an 

exemption from paying assessments. 

These exemptions were estimated by 

multiplying the exempt volume by the 

assessment rate, and the amounts for 

exempt entities would be as follows: 

Beef: producers—$15,197; 

importers—unknown. 

Blueberries: producers—$5,833; 

importers—$0 ($5,833 total). 

Cotton: producers—$52,000; 

importers—$25,000 ($77,000 total). 

Dairy: producers—$1.33 million. 

Eggs: producers—$0. 

Fluid milk: processors—$0. 

Hass avocados: producers—$91,000; 

importers—$0 ($91,000 total). 

Honey: producers—$11,174; 

importers—$0 ($11,174 total). 

Lamb: $2,987 total (includes 

producers, first handlers, feeders, seed 

stock producers, and exporters). 

Mushrooms: producers—$14,400; 

importers—$0 ($14,400 total). 

Peanuts: producers—$18,690. 

Popcorn: processors—$0. 

Pork: producers—$966; importers— 

unknown. 

Potatoes: producers—$45,000; 

importers—$0 ($45,000 total). 

Soybeans: producers—$40,273. 

Watermelons: producers—$17,890; 

handlers—$950; importers—$0 ($18,840 

total). 

Therefore, the estimated net economic 

impact of this proposed rule on the 

respondents is as follows: 

Program Paperwork 

burden costs 

Exemption 

from assessments Net amount 

Beef .............................................................................................................................................. $835 $15,197 $14,362 

Blueberries ................................................................................................................................... 35 5,833 5,798 

Cotton .......................................................................................................................................... 550 77,000 76,450 

Dairy ............................................................................................................................................. 3,000 1,330,000 1,327,000 

Eggs ............................................................................................................................................. 0 0 0 

Fluid milk ...................................................................................................................................... 0 0 0 

Hass avocados ............................................................................................................................ 300 91,000 90,700 

Honey ........................................................................................................................................... 50 11,174 11,124 

Lamb ............................................................................................................................................ 200 2,987 2,787 

Mushrooms .................................................................................................................................. 10 14,400 14,390 

Peanuts ........................................................................................................................................ 270 18,690 18,420 

Popcorn ........................................................................................................................................ 0 0 0 

Pork .............................................................................................................................................. 90 966 876 

Potatoes ....................................................................................................................................... 175 45,000 44,825 

Soybeans ..................................................................................................................................... 5,140 40,273 35,133 

Watermelons ................................................................................................................................ 140 18,840 18,700 

Total ...................................................................................................................................... 10,795 1,671,360 1,660,565 

22694 Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 

Based on the above figures, this rule 

should have only a beneficial economic 

effect on small entities. 

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 impact of this proposed 

rule on small entities. Comments may 

indicate the size, number, and type of 

entities that would be affected by this 

proposed rule and explain the potential 

effects of the proposed amendments on 

those entities. 

In accordance with the PRA, the 

reporting and recordkeeping provisions 

that would be generated by this 

proposed rule will be submitted to the 

Office of Management and Budget 

(OMB) under OMB No. 0581–NEW. 

Reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. In 

addition, USDA has not identified any 

relevant Federal rules that duplicate, 

overlap, or conflict with this rule. 

There are no viable alternatives to 

proposing these organic assessment 

exemption procedures. The FAIR Act 

requires USDA to take this action to 

lessen the assessment costs for persons 

who produce and market solely 100 

percent organic products. The 

anticipated assessment reductions for 

eligible persons are expected to greatly 

outweigh the costs related to the 

additional reporting. 

A 30-day comment period is provided 

for interested persons to submit written 

comments on the criteria for identifying 

persons eligible to obtain an assessment 

exemption and the procedural details 

for obtaining an exemption under the 

various research and promotion 

programs. Thirty days is deemed 

appropriate because this action was 

mandated by Congress under the 2002 

Farm Bill and is intended to provide 

relief to producers and marketers of 

solely 100 percent organic products. 

Pursuant to the Paperwork Reduction 

Act, comments on the information 

collecting burden must be received 

within 60 days after the date of 

publication of this proposed rule in the 

Federal Register. 

List of Subjects 

7 CFR Part 1150 

Dairy products, Reporting and 

recordkeeping requirements, Research. 

7 CFR Part 1160 

Fluid milk products, Milk, Promotion. 

7 CFR Part 1205 

Advertising, Agricultural Research, 

Cotton, Reporting and recordkeeping 

requirements. 

7 CFR Part 1207 

Advertising, Agricultural research, 

Potatoes, Reporting and recordkeeping 

requirements. 

7 CFR Part 1209 

Advertising, Agricultural Research, 

Marketing agreements, Mushrooms, 

Reporting and recordkeeping 

requirements. 

7 CFR Part 1210 

Administrative practice and 

procedure, Advertising, Agricultural 

research, Reporting and recordkeeping 

requirements, Watermelons. 

7 CFR Part 1215 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Popcorn, Promotion, Reporting and 

recordkeeping requirements. 

7 CFR Part 1216 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Peanut promotion, Reporting and 

recordkeeping requirements. 

7 CFR Part 1218 

Administrative practice and 

procedure, Advertising, Blueberries, 

Consumer information, Marketing 

agreements, Blueberry promotion, 

Reporting and recordkeeping 

requirements. 

7 CFR Part 1219 

Administrative practice and 

procedure, Advertising, Consumer 

information, Hass avocados, Marketing 

agreements, Promotion, Reporting and 

recordkeeping requirements. 

7 CFR Part 1220 

Administrative practice and 

procedure, Advertising, Agricultural 

research, Marketing agreements, 

Soybeans and soybean products, 

Reporting and recordkeeping 

requirements. 

7 CFR Part 1230 

Administrative practice and 

procedure, Advertising, Agricultural 

research, Marketing agreement, Meat 

and meat products, Pork and pork 

products. 

7 CFR Part 1240 

Advertising, Agricultural research, 

Honey, Imports, 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, Consumer 

information, Lamb and lamb products, 

Marketing agreements, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, 7 CFR Parts 1150, 1160, 1205, 

1207, 1209, 1210, 1215, 1216, 1218, 

1219, 1220, 1230, 1240, 1250, 1260, and 

1280 are proposed to be amended as 

follows: 

PART 1150—DAIRY PROMOTION 

1. The authority citation for Part 1150 

is revised to read as follows: 

Authority: 7 U.S.C. 4501–4514 and 7 

U.S.C. 7401. 

2. Add a new § 1150.157 to read as 

follows: 

§ 1150.157 Assessment exemption. 

(a) A producer described in 

§ 1150.152(a) and (b) who produces and 

markets solely 100 percent organic 

products and does not produce any 

conventional or non-organic products 

shall be exempt from the payment of 

assessments on milk provided the milk 

is produced on a certified organic farm 

as defined in section 2103 of the 

Organic Foods Production Act of 1990 

(7 U.S.C. 6502). 

(b) To apply for an exemption under 

this section, a producer pursuant to 

§ 1150.152(a) and (b) shall submit a 

request for exemption to the Board on 

a form provided by the Board at any 

time initially and annually thereafter on 

or before July 1 as long as the producer 

continues to be eligible for the 

exemption. 

(c) The request shall include the 

following: the producer’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 22695 

in paragraph (a) of this section for an 

assessment exemption. 

(d) If a producer described in 

§ 1150.152(a) and (b) 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 of receipt of 

the producer’s request. 

(e) The producer described in 

paragraph (c) of 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. 

(f) The person responsible for 

remitting assessments to the Board 

pursuant to § 1150.152 shall maintain 

records showing the exempt producer’s 

name and address and the exemption 

number assigned by the Board pursuant 

to § 1150.172. 

3. Revise § 1150.187 to read as 

follows: 

§ 1150.187 Paperwork Reduction Act 

assigned number. 

The information collection and 

recordkeeping requirements contained 

in §§ 1150.133, 1150.152, 1150.153, 

1150.157, 1150.171, 1150.172, and 

1150.273 of these regulations (7 CFR 

Part 1150) have been approved by the 

Office of Management and Budget 

(OMB) under the provisions of 44 U.S.C. 

Chapter 35 and have been assigned 

OMB Control Number 0581–0093. 

PART 1160—FLUID MILK PROMOTION 

4. The authority citation for Part 1160 

is revised to read as follows: 

Authority: 7 U.S.C. 6401–6417 and 7 

U.S.C. 7401. 

5. In § 1160.211, paragraph (a)(1) is 

revised to read as follows: 

§ 1160.211 Assessments. 

(a)(1) Each fluid milk processor shall 

pay to the Board or its designated agent 

an assessment of $.20 per 

hundredweight of fluid milk products 

processed and marketed commercially 

in consumer-type packages in the 

United States by such fluid milk 

processor. Any fluid milk processor 

who markets milk of its own production 

directly to consumers as prescribed 

under section 113(g) of the Dairy 

Production Stabilization Act of 1983 (7 

U.S.C. 4504(g)), and not exempt under 

§ 1160.108 or § 1160.215, shall also pay 

the assessment under this subpart. The 

Secretary shall have the authority to 

receive assessments on behalf of the 

Board. 

* * * * * 

6. Section 1160.215 is added to read 

as follows: 

§ 1160.215 Assessment exemption. 

(a) No assessment shall be required on 

fluid milk products exported from the 

United States. 

(b) A fluid milk processor described 

in § 1160.211(a) who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or non-organic 

products, shall be exempt from the 

payment of assessments on fluid milk 

products produced on a certified 

organic farm as defined in section 2103 

of the Organic Foods Production Act of 

1990 (7 U.S.C. 6502). For purposes of 

this section, produce means 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. 

(c) To apply for an assessment 

exemption, a fluid milk processor 

described in § 1160.211 paragraph (a) 

shall submit a request for exemption to 

the Board on a form provided by the 

Board at any time initially and annually 

thereafter on or before July 1 as long as 

the fluid milk processor continues to be 

eligible for the assessment exemption. 

(d) The request shall include the 

following: The fluid milk processor’s 

name and address, a copy of the organic 

farm or organic handling operation 

certificate provided by a USDAaccredited certifying agent as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502), 

and a signed certification that the 

applicant meets all of the requirements 

specified in paragraph (b) of this section 

for an assessment exemption. 

(e) The Board will grant an 

assessment exemption to any fluid milk 

processor meeting the criteria in 

§ 1160.215(b) and issue a Certificate of 

Exemption to the fluid milk processor 

within 30 days of receipt of the fluid 

milk processor’s request, provided such 

fluid milk processor meets the 

requirements of this section. 

PART 1205—COTTON RESEARCH 

AND PROMOTION 

7. The authority citation for Part 1205 

is revised to read as follows: 

Authority: 7 U.S.C. 2101–2118 and 7 

U.S.C. 7401. 

8. Section 1205.519 is added to read 

as follows: 

§ 1205.519 Organic exemption. 

(a) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or nonorganic 

products, shall be exempt from the 

payment of assessments with respect to 

any cotton that is produced on a 

certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

For purposes of this section, produce 

means 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. 

(b) To apply for an exemption under 

this section, an eligible cotton producer 

shall submit a request for exemption to 

the Board—on a form provided by the 

Board—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) The request shall include the 

following: the producer’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

in paragraph (a) of this section for an 

assessment exemption. 

(d) If the producer complies with the 

requirements of this section, the Board 

will grant the exemption and issue a 

Certificate of Exemption to the producer 

within 30 days of receipt of the 

producer’s application. The producer 

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. 

(e) An importer who meets the criteria 

in paragraph (a) of this section may 

submit documentation to the Board and 

request an exemption from assessment 

on 100 percent organic cotton and 100 

percent organic cotton products—on a 

form provided by the Board—at any 

time initially and annually thereafter on 

or before the beginning of the crop year 

as long as the importer continues to be 

eligible for the exemption. This 

documentation shall include a copy of 

the organic farm or organic handling 

operation certificate provided by a 

USDA-accredited certifying agent as 

defined in section 2103 of the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6502) and a signed certification that the 

applicant meets all of the requirements 

specified for an assessment exemption. 

If the importer complies with the 

requirements of this section, the Board 

will grant the exemption and issue a 

22696 Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 

Certificate of Exemption to the importer 

within 30 days of receipt of the 

importer’s application. The Board will 

also issue the importer a 9-digit 

alphanumeric Harmonized Tariff 

Schedule (HTS) classification valid for 1 

year from the date of issue. This HTS 

classification should be entered by the 

importer, in the appropriate location as 

determined by the U.S. Customs 

Service, on the Customs entry 

documentation. Any line item entry of 

100 percent organic cotton and cotton 

products bearing this HTS classification 

assigned by the Board will not be 

subject to assessments. 

PART 1207—POTATO RESEARCH 

AND PROMOTION 

9. The authority citation for Part 1207 

is revised to read as follows: 

Authority: 7 U.S.C. 2611–2627 and 7 

U.S.C. 7401. 

10. Section 1207.514 is added to read 

as follows: 

§ 1207.514 Exemption for organic 

potatoes. 

(a) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or nonorganic 

products, shall be exempt from the 

payment of assessments with respect to 

any potatoes that are produced on a 

certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

For purposes of this section, produce 

means 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. 

(b) To apply for an exemption under 

this section, the producer shall submit 

a request for exemption to the Board—

on a form provided by the Board—at 

any time initially and annually 

thereafter on or before July 1 as long as 

the producer continues to be eligible for 

the exemption. 

(c) The request shall include the 

following: the producer’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

in paragraph (a) of this section for an 

assessment exemption. 

(d) If the producer complies with the 

requirements of this section, the Board 

will grant the exemption and issue a 

Certificate of Exemption to the producer 

within 30 days of receipt of the 

producer’s application. The producer 

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. 

(e) An importer who meets the criteria 

in paragraph (a) of this section may 

submit documentation to the Board and 

request an exemption from assessment 

on 100 percent organic potatoes, potato 

products, and seed potatoes—on a form 

provided by the Board—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 a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502) and a signed 

certification that the applicant meets all 

of the requirements specified for an 

assessment exemption. 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 30 

days of receipt of the importer’s 

application. The Board will also issue 

the importer a 9-digit alphanumeric 

Harmonized Tariff Schedule (HTS) 

classification valid for 1 year from the 

date of issue. This HTS classification 

should be entered by the importer, in 

the appropriate location as determined 

by the U.S. Customs Service, on the 

Customs entry documentation. Any line 

item entry of 100 percent organic 

potatoes, potato products, and seed 

potatoes bearing this HTS classification 

assigned by the Board will not be 

subject to assessments. 

PART 1209—MUSHROOM 

PROMOTION, RESEARCH, AND 

CONSUMER INFORMATION 

11. The authority citation for Part 

1209 is revised to read as follows: 

Authority: 7 U.S.C. 6101–6112 and 7 

U.S.C. 7401. 

12. 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; and 

(2) A person who produces and 

markets solely 100 percent organic 

products on a certified organic farm as 

defined in section 2103 of the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6502) and does not produce any 

conventional or nonorganic products. 

For purposes of this section, produce 

means 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. 

13. In § 1209.252, paragraph (a) is 

revised to read as follows: 

§ 1209.252 Exemption procedures. 

(a) Types of exemptions and 

requirements. (1) Any person who 

produces or imports, on average, 

500,000 pounds or less of mushrooms 

annually and who desires to claim an 

exemption from assessments during a 

fiscal year shall apply to the Council, on 

a form provided by the Council, for a 

Certificate of Exemption. The producer 

or importer shall certify that the 

person’s production or importation of 

mushrooms shall not exceed 500,000 

pounds, on average, for the fiscal year 

for which the exemption is claimed. An 

average shall be calculated by averaging 

a person’s estimated production or 

importation for the fiscal year for which 

an exemption is claimed with the 

person’s production or importation in 

the preceding fiscal year. 

(2) To apply for an exemption for 

organic mushrooms, an eligible 

mushroom producer shall submit a 

request for exemption to the Council—

on a form provided by the Council—at 

any time initially and annually 

thereafter on or before January 1 as long 

as the producer continues to be eligible 

for the exemption. The request shall 

include the following: The producer’s 

name and address, a copy of the organic 

farm or organic handling operation 

certificate provided by a USDAaccredited certifying agent as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502), 

and a signed certification that the 

applicant meets all of the requirements 

specified for an assessment exemption. 

If the applicant complies with the 

requirements of § 1209.52(a)(2), the 

Council will grant the exemption and 

issue a Certificate of Exemption to the 

producer within 30 days of receipt of 

the producer’s request. An importer 

who meets the criteria in § 1290.52(a)(2) 

may submit documentation to the 

Council and request an exemption from 

assessment on 100 percent organic 

mushrooms—on a form provided by the 

Council—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 

Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 22697 

documentation shall include a copy of 

the organic farm or organic handling 

operation certificate provided by a 

USDA-accredited certifying agent as 

defined in section 2103 of the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6502) and a signed certification that the 

applicant meets all of the requirements 

specified for an assessment exemption. 

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 30 days of receipt of the 

importer’s application. The Council will 

also issue the importer a 9-digit 

alphanumeric Harmonized Tariff 

Schedule (HTS) classification valid for 1 

year from the date of issue. This HTS 

classification should be entered by the 

importer, in the appropriate location as 

determined by the U.S. Customs 

Service, on the Customs entry 

documentation. Any line item entry of 

100 percent organic mushrooms bearing 

this HTS classification assigned by the 

Council will not be subject to 

assessments. 

* * * * * 

PART 1210—WATERMELON 

RESEARCH AND PROMOTION 

14. The authority citation for Part 

1210 is revised to read as follows: 

Authority: 7 U.S.C. 4901–4916 and 7 

U.S.C. 7401. 

15. Section 1210.516 is added to read 

as follows: 

§ 1210.516 Exemption for organic 

watermelons. 

(a) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or nonorganic 

products, shall be exempt from the 

payment of assessments with respect to 

any watermelons that are produced on 

a certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

For purposes of this section, produce 

means 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. 

(b) To apply for this exemption, the 

producer or handler shall submit the 

request to the Board—on a form 

provided by the Board—at any time 

initially and annually thereafter on or 

before January 1 as long as the producer 

or handler continues to be eligible for 

the exemption. 

(c) The request shall include the 

following: The applicant’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

for an assessment exemption. 

(d) If the producer or handler 

complies with the requirements of this 

section, the Board will approve the 

exemption and issue a Certificate of 

Exemption to the producer or handler 

within 30 days of receipt of the 

application. The producer shall provide 

a copy of the Certificate of Exemption to 

each handler to whom the producer 

sells watermelons. The handler shall 

maintain records showing the exempt 

producer’s name and address and the 

exemption number assigned by the 

Board. 

(e) An importer who meets the criteria 

in paragraph (a) of this section may 

submit documentation to the Board and 

request an exemption from assessment 

on 100 percent organic watermelons—

on a form provided by the Board—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 a copy of the organic farm 

or organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502) and a signed 

certification that the applicant meets all 

of the requirements specified for an 

assessment exemption. 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 30 

days of receipt of the importer’s 

application. The Board will also issue 

the importer a 9-digit alphanumeric 

Harmonized Tariff Schedule (HTS) 

classification valid for 1 year from the 

date of issue. This HTS classification 

should be entered by the importer, in 

the appropriate location as determined 

by the U.S. Customs Service, on the 

Customs entry documentation. Any line 

item entry of 100 percent organic 

watermelons bearing this HTS 

classification assigned by the Board will 

not be subject to assessments. 

PART 1215—POPCORN PROMOTION, 

RESEARCH, AND CONSUMER 

INFORMATION 

16. The authority citation for Part 

1215 is revised to read as follows: 

Authority: 7 U.S.C. 7481–7491 and 7 

U.S.C. 7401. 

17. Section 1215.52 is revised to read 

as follows: 

§ 1215.52 Exemption from assessment. 

(a) Persons that process and distribute 

4 million pounds or less of popcorn 

annually, based on the previous year, 

shall be exempted from assessment. 

(b) Persons who produce and market 

solely 100 percent organic products and 

who do not produce any conventional 

or nonorganic products shall be exempt 

from the payment of assessments with 

respect to any popcorn that is produced 

on a certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

For purposes of this section, produce 

means 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. 

(c) To claim an exemption, persons 

shall apply to the Board, in the form and 

manner prescribed in the rules and 

regulations. 

18. Section 1215.300 is amended by: 

(a) Revising paragraphs (b) and (c); 

(b) Redesignating paragraph (d) as 

paragraph (e); 

(c) Adding a new paragraph (d). 

Revisions read as follows: 

§ 1215.300 Exemption procedures. 

* * * * * 

(b) A person who produces and 

markets solely 100 percent organic 

products and who does not produce any 

conventional or nonorganic products as 

provided in § 1215.52(b) of this part 

may apply for an exemption by 

submitting a request for exemption to 

the Board on a form provided by the 

Board at any time initially. The request 

shall include the following: the 

applicant’s name and address, a copy of 

the organic farm or organic handling 

operation certificate provided by a 

USDA-accredited certifying agent as 

defined in section 2103 of the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6502), and a signed certification that the 

applicant meets all of the requirements 

specified for an assessment exemption. 

(c) Upon receipt of an application, the 

Board shall determine whether an 

exemption may be granted and issue a 

Certificate of Exemption to the producer 

within 30 days of receipt of the 

applicant’s request. 

(d) Any person who desires to renew 

the exemption from assessments for a 

subsequent fiscal year shall reapply to 

the Board by January 1 of that year. 

* * * * * 

22698 Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 

PART 1216—PEANUT PROMOTION, 

RESEARCH, AND INFORMATION 

19. The authority citation for Part 

1216 is revised to read as follows: 

Authority: 7 U.S.C. 7411–7425 and 7 

U.S.C. 7401. 

20. Section 1216.56 is added to read 

as follows: 

§ 1216.56 Exemption for organic peanuts. 

(a) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or nonorganic 

products, shall be exempt from the 

payment of assessments with respect to 

any peanuts that are produced on a 

certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

(b) In order to apply for this 

exemption, an eligible peanut producer 

shall submit a request for exemption to 

the Board—on a form provided by the 

Board—at any time initially and 

annually thereafter on or before August 

1 as long as the producer continues to 

be eligible for the exemption. 

(c) The request shall include the 

following: the producer’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

for an assessment exemption. 

(d) If the producer complies with the 

requirements of this section, the Board 

will approve the exemption and issue a 

Certificate of Exemption to the producer 

within 30 days of receipt of the 

producer’s application. 

(e) The producer shall provide a copy 

of the Certificate of Exemption to each 

handler to whom the producer sells 

peanuts. The handler shall maintain 

records showing the exempt producer’s 

name and address and the exemption 

number assigned by the Board. 

PART 1218—BLUEBERRY 

PROMOTION, RESEARCH, AND 

INFORMATION 

21. The authority citation for Part 

1218 is revised to read as follows: 

Authority: 7 U.S.C. 7411–7425 and 7 

U.S.C. 7401. 

22. Section 1218.53 is amended by: 

(a) Redesignating paragraphs (b) 

through (e) as paragraphs (f) through (i). 

(b) Revising paragraph (a). 

(c) Adding new paragraphs (b) 

through (e) to read as follows: 

§ 1218.53 Exemption procedures. 

(a) Any producer who produces less 

than 2,000 pounds of blueberries 

annually shall be exempt from the 

payment of assessments. Such producer 

may apply to the USACBC, on a form 

provided by the USACBC, for a 

certificate of exemption. Such producer 

shall certify that the producer’s 

production of blueberries shall be less 

than 2,000 pounds for the fiscal year for 

which the exemption is claimed. 

(b) Any importer who imports less 

than 2,000 pounds of fresh and frozen 

blueberries annually shall be exempt 

from the payment of assessments. Such 

importer may apply to the USACBC, on 

a form provided by the USACBC, for a 

certificate of exemption. Such importer 

shall certify that the importer’s 

importation of fresh and frozen 

blueberries shall not exceed 2,000 

pounds for the fiscal year for which the 

exemption is claimed. 

(c) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or nonorganic 

products, shall be exempt from the 

payment of assessments with respect to 

any blueberries that are produced on a 

certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

For purposes of this section, produce 

means 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. 

(d) To apply for this exemption, a 

producer shall submit a request for 

exemption to the USACBC—on a form 

provided by the USACBC—at any time 

initially and annually thereafter on or 

before January 1 as long as the producer 

continues to be eligible for the 

exemption. The request shall include 

the following: the producer’s name and 

address, with a copy of the organic farm 

or organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990, and a signed certification 

that the applicant meets all of the 

requirements specified for an 

assessment exemption. If a producer 

complies with the requirements in 

paragraph (c) of this section, the 

USACBC will grant an assessment 

exemption and issue a certification of 

exemption to the producer within 30 

days of receipt of the producer’s request. 

(e) An importer who meets the criteria 

in paragraph (c) of this section may 

submit documentation to the Board and 

request an exemption from assessment 

on 100 percent organic fresh and frozen 

blueberries—on a form provided by the 

USACBC—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 a copy of 

the organic farm or organic handling 

operation certificate provided by a 

USDA-accredited certifying agent as 

defined in section 2103 of the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6502) and a signed certification that the 

applicant meets all of the requirements 

specified for an assessment exemption. 

If the importer complies with the 

requirements of this section, the 

USACBC will grant the exemption and 

issue a Certificate of Exemption to the 

importer within 30 days of receipt of the 

importer’s application. The USACBC 

will also issue the importer a 9-digit 

alphanumeric Harmonized Tariff 

Schedule (HTS) classification valid for 1 

year from the date of issue. This HTS 

classification should be entered by the 

importer, in the appropriate location as 

determined by the U.S. Customs 

Service, on the Customs entry 

documentation. Any line item entry of 

100 percent organic fresh and frozen 

blueberries bearing this HTS 

classification assigned by the USACBC 

will not be subject to assessments. 

* * * * * 

PART 1219—HASS AVOCADO 

PROMOTION, RESEARCH, AND 

INFORMATION 

23. The authority citation for Part 

1219 is revised to read as follows: 

Authority: 7 U.S.C. 7801–7813 and 7 

U.S.C. 7401. 

24. In part 1219, add a new Subpart 

C—Rules and Regulations to read as 

follows: 

Subpart C—Rules and Regulations 

§ 1219.200 Terms defined. 

Unless otherwise defined in this 

subpart, the definitions of terms used in 

this subpart shall have the same 

meaning as the definitions of such terms 

which appear in Subpart A—Hass 

Avocado Promotion, Research, and 

Information Order of this part. 

§ 1219.201 Definitions. 

Organic Act means section 2103 of the 

Organic Foods Production Act of 1990 

(7 U.S.C. 6502). 

§ 1219.202 Exemption for organic Hass 

avocados. 

(a) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or nonorganic 

Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 22699 

products, shall be exempt from the 

payment of assessments with respect to 

any Hass avocados that are produced on 

a certified organic farm as defined in the 

Organic Act. For purposes of this 

section, produce means 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. 

(b) To obtain this exemption, an 

eligible Hass avocado producer shall 

submit a request for exemption to the 

Board—on a form provided by the 

Board—at any time initially and 

annually thereafter on or before 

November 1 as long as the producer 

continues to be eligible for the 

exemption. 

(c) The request shall include the 

following: the producer’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in the 

Organic Act, and a signed certification 

that the applicant meets all of the 

requirements specified for an 

assessment exemption. 

(d) If the producer complies with the 

requirements of paragraph (a) of this 

section, the Board will grant an 

assessment exemption and shall issue a 

Certificate of Exemption to the producer 

within 30 days of receiving the 

producer’s application. The producer 

shall provide a copy of the Certificate of 

Exemption to each handler to whom the 

producer sells Hass avocados. The 

handler shall maintain records showing 

the exempt producer’s name and 

address and the exemption number 

assigned by the Board. 

(e) An importer who meets the criteria 

in paragraph (b) of this section may 

submit documentation to the Board and 

request an exemption from assessment 

on 100 percent organic Hass avocados—

on a form provided by the Board—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 a copy of 

the organic farm or organic handling 

operation certificate provided by a 

USDA-accredited certifying agent as 

defined in section 2103 of the Organic 

Act and a signed certification that the 

applicant meets all of the requirements 

specified for an assessment exemption. 

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 30 days of receipt of the 

importer’s application. The Board will 

also issue the importer a 9-digit 

alphanumeric Harmonized Tariff 

Schedule (HTS) classification valid for 1 

year from the date of issue. This HTS 

classification should be entered by the 

importer, in the appropriate location as 

determined by the U.S. Customs 

Service, on the Customs entry 

documentation. Any line item entry of 

100 percent organic Hass avocados 

bearing this HTS classification assigned 

by the Board will not be subject to 

assessments. 

PART 1220—SOYBEAN PROMOTION, 

RESEARCH, AND CONSUMER 

INFORMATION 

25. The authority citation for Part 

1220 is revised to read as follows: 

Authority: 7 U.S.C. 6301–6311 and 7 

U.S.C. 7401. 

26. Section 1220.302 is added to read 

as follows: 

§ 1220.302 Exemption. 

(a) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or non-organic 

products, shall be exempt from the 

payment of assessment with respect to 

any soybeans that are produced on a 

certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

(b) To apply for an exemption under 

this section, the producer shall submit 

the request to the Board or other party 

as designated by the Board—on a form 

provided by the Board—at any time 

initially and annually thereafter on or 

before January 1 as long as the producer 

continues to be eligible for the 

exemption. 

(c) The request shall include the 

following: the producer’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

for an assessment exemption. 

(d) If the producer complies with the 

requirements of this section, the Board 

or designee will grant the exemption 

and issue a Certificate of Exemption to 

the producer within 30 days of receipt 

of the producer’s application. 

(e) The producer shall provide a copy 

of the Certificate of Exemption to each 

first purchaser. The first purchaser shall 

maintain records showing the exempt 

producer’s name and address and the 

exemption number assigned by the 

Board. 

PART 1230—PORK PROMOTION, 

RESEARCH, AND CONSUMER 

INFORMATION 

27. The authority citation for Part 

1230 is revised to read as follows: 

Authority: 7 U.S.C. 4801–4819 and 7 

U.S.C. 7401. 

28. Section 1230.102 is added to read 

as follows: 

§ 1230.102 Exemption. 

(a) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or non-organic 

products, shall be exempt from the 

payment of assessment with respect to 

any porcine animals or pork and pork 

products that are produced on a 

certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

For purposes of this section, produce 

means 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. 

(b) To apply for an exemption under 

this section, the producer shall submit 

the request to the Board—on a form 

provided by the Board—at any time 

initially and annually thereafter on or 

before January 1 as long as the producer 

continues to be eligible for the 

exemption. 

(c) The request shall include the 

following: the producer’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

for an assessment exemption. 

(d) If the producer complies with the 

requirements of this section, the Board 

will grant the exemption and issue a 

Certificate of Exemption to the producer 

within 30 days of receipt of the 

producer’s application. 

(e) The producer shall provide a copy 

of the Certificate of Exemption to each 

person responsible for collecting and 

remitting the assessment to the Board. 

(f) The person responsible for 

collecting and remitting the assessment 

to the Board shall maintain records 

showing the exempt producer’s name 

and address and the exemption number 

assigned by the Board. 

(g) An importer who meets the criteria 

in paragraph (a) above may submit 

documentation to the Board and request 

an exemption from assessment on 100 

percent organic porcine animals or pork 

22700 Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 

and pork products—on a form provided 

by the Board—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 a copy of 

the organic farm or organic handling 

operation certificate provided by a 

USDA-accredited certifying agent as 

defined in section 2103 of the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6502) and a signed certification that the 

applicant meets all of the requirements 

specified for an assessment exemption. 

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 30 days of receipt of the 

importer’s application. The Board will 

also issue the importer a 9-digit 

alphanumeric Harmonized Tariff 

Schedule (HTS) classification valid for 1 

year from the date of issue. This HTS 

classification should be entered by the 

importer, in the appropriate location as 

determined by the U.S. Customs 

Service, on the Customs entry 

documentation. Any line item entry of 

100 percent organic porcine animals or 

pork and pork products bearing this 

HTS classification assigned by the 

Board will not be subject to 

assessments. 

PART 1240—HONEY RESEARCH, 

PROMOTION, AND CONSUMER 

INFORMATION 

29. The authority citation for Part 

1240 continues to read as follows: 

Authority: 7 U.S.C. 4601–4612 and 7 

U.S.C. 7401. 

30. Section 1240.42 is amended by: 

(a) Redesignating paragraph (d) as 

paragraph (f). 

(b) Revising paragraph (c). 

(c) Adding new paragraphs (d) and 

(e). 

Revisions read as follows: 

§ 1240.42 Exemption from assessment. 

* * * * * 

(c) If, after a person has been exempt 

from paying assessments for any year 

pursuant to paragraphs (a) and (b) of 

this section, and the person no longer 

meets the requirements of paragraphs (a) 

and (b) of this section for exemption, the 

person shall file a report with the Board 

in the form and manner prescribed by 

the Board and pay an assessment on or 

before March 15 of the subsequent year 

on all honey or honey products 

produced or imported by such person 

during the year for which the person 

claimed the exemption. 

(d) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or nonorganic 

products, shall be exempt from the 

payment of assessments with respect to 

any honey that is produced on a 

certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

For purposes of this section, produce 

means 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. A person is 

a producer, first-handler, or producerpacker. 

(e) An importer who meets the criteria 

in paragraph (d) of this section may 

submit documentation to the Board and 

request an exemption from assessment 

on 100 percent organic honey and 

honey products. 

* * * * * 

31. Amend § 1240.50 by revising 

paragraph (d) to read as follows: 

§ 1240.50 Reports. 

* * * * * 

(d) For persons who have an 

exemption from assessments under 

§ 1240.42, such information as deemed 

necessary by the Board, and approved 

by the Secretary, concerning the 

exemption including disposition of 

exempted honey. 

32. Revise § 1240.114 to read as 

follows: 

§ 1240.114 Exemption procedures. 

(a) To obtain a Certificate of 

Exemption for organic honey, an eligible 

person shall submit a request for 

exemption to the Board—on a form 

provided by the Board—at any time 

initially and annually thereafter on or 

before January 1 as long as the producer 

continues to be eligible for the 

exemption. The request shall include 

the following: the person’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

for an assessment exemption. 

(b) If the person complies with the 

requirements of this section, the Board 

will approve the exemption and issue a 

Certificate of Exemption to the producer 

within 30 days of receiving the 

producer’s application. 

(c) A person receiving an organic 

exemption shall provide a copy of the 

Certificate of Exemption to each handler 

to whom the producer sells honey. The 

handler shall maintain records showing 

the exempt producer’s name and 

address and the exemption number 

assigned by the Board. 

(d) An importer who is eligible to be 

exempt from the payment of 

assessments on imported organic honey 

and honey products may request an 

exemption from assessment on 100 

percent organic honey and honey 

products—on a form provided by the 

Board—at any time initially and on or 

before January 1 as long as the importer 

continues to be eligible for the 

exemption. This documentation shall 

include a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502) and a signed 

certification that the applicant meets all 

of the requirements specified for an 

assessment exemption. 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 30 

days of receipt of the importer’s 

application. The Board will also issue 

the importer a 9-digit alphanumeric 

Harmonized Tariff Schedule (HTS) 

classification valid for 1 year from the 

date of issue. This HTS classification 

should be entered by the importer, in 

the appropriate location as determined 

by the U.S. Customs Service, on the 

Customs entry documentation. Any line 

item entry of 100 percent organic honey 

and honey products bearing this HTS 

classification assigned by the Board will 

not be subject to assessments. 

33. In § 1240.115, revise paragraph 

(b)(1) to read as follows: 

§ 1240.115 Levy of assessments. 

* * * * * 

(b) * * * 

(1) Any persons other than importers 

holding a valid exemption certificate 

pursuant to § 1240.42 during the 12- 

month period ending on December 31; 

* * * * * 

34. Amend § 1240.118 by revising the 

first sentence to read as follows: 

§ 1240.118 Reports of disposition of 

exempted honey. 

The Board may require reports by first 

handlers, producer-packers, importers, 

or any persons who receive an 

exemption from assessments under 

§ 1240.42 on the handling and 

disposition of exempted honey. * * * 

35. Revise § 1240.120 to read as 

follows: 

§ 1240.120 Retention period for records. 

Each first handler, producer-packer, 

importer, or any person who receives an 

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exemption from assessments under 

§ 1240.42 and is required to make 

reports pursuant to this subpart shall 

maintain and retain for at least two 

years beyond the marketing year of their 

applicability: 

(a) One copy of each report made to 

the Board; 

(b) Records of all exempt producers, 

producer-packers, and importers 

including certification of exemption as 

necessary to verify the address of such 

exempt person; and 

(c) Such records as are necessary to 

verify such reports. 

36. Revise § 1240.121 to read as 

follows: 

§ 1240.121 Availability of records. 

Each first handler, producer-packer, 

importer, or any person who receives an 

exemption from assessments under 

§ 1240.42 and is required to make 

reports pursuant to this subpart shall 

make available for inspection by 

authorized employees of the Board or 

the Secretary during regular business 

hours, such records as are appropriate 

and necessary to verify reports required 

under this subpart. 

37. Revise § 1240.122 to read as 

follows: 

§ 1240.122 Confidential books, records, 

and reports. 

All information obtained from the 

books, records, and reports of handlers, 

producer-packers, importers or any 

persons who receive an exemption from 

assessments under § 1240.42 and all 

information with respect to refunds of 

assessments made to individual 

producers and importers shall be kept 

confidential in the manner and to the 

extent provided for in § 1240.52 of the 

Order. 

PART 1250—EGG RESEARCH AND 

PROMOTION 

38. The authority citation for Part 

1250 is revised to read as follows: 

Authority: 7 U.S.C. 2701–2718 and 7 

U.S.C. 7401. 

39. Revise § 1250.530 to read as 

follows: 

§ 1250.530 Certification of exempt 

producers. 

(a) Number of laying hens. Egg 

producers not subject to the provisions 

of the Act pursuant to § 1250.348 shall 

file with all handlers to whom they sell 

eggs a statement certifying their 

exemption from the provisions of the 

Act in accordance with the criterion of 

§ 1250.348. Certification shall be made 

on forms approved and provided by the 

Egg Board to collecting handlers for use 

by exempt producers. The certification 

form shall be filed with each handler on 

or before January 1 of each year as long 

as the producer continues to do 

business with the handler. A copy of the 

certificate of exemption shall be 

forwarded to the Egg Board by the 

handler within 30 days of receipt. The 

certification shall list the following: the 

name and address of the producer, the 

basis for producer exemption according 

to the requirements of § 1250.348, and 

the signature of the producer. 

(b) Organic Production. A person who 

produces and markets solely 100 

percent organic products, and who does 

not produce any conventional or 

nonorganic products, shall be exempt 

from the payment of assessments with 

respect to any eggs produced on a 

certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

(1) To apply for an exemption under 

this section, a producer shall submit a 

request for exemption to the Board on 

a form provided by the Board at any 

time initially and annually thereafter on 

or before January 1 as long as the 

producer continues to be eligible for the 

exemption. 

(2) The request shall include the 

following: the producer’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

in paragraph (b) of this section for an 

assessment exemption. 

(3) If the 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 of receipt of 

the producer’s request. 

(4) 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. 

(c) If the exempt producer no longer 

qualifies for an exemption as specified 

in § 1250.348 or § 1250.530(b), that 

producer shall notify, within 10 days, 

all handlers with whom the producer 

has filed a certificate of exemption. 

PART 1260—BEEF PROMOTION AND 

RESEARCH 

40. The authority citation for Part 

1260 is revised to read as follows: 

Authority: 7 U.S.C. 2901–2911 and 7 

U.S.C. 7401. 

41. Section 1260.302 is added to read 

as follows: 

§ 1260.302 Exemption. 

(a) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or non-organic 

products, shall be exempt from the 

payment of the promotion and research 

assessment with respect to any cattle or 

beef and beef products that are 

produced on a certified organic farm as 

defined in section 2103 of the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6502). For purposes of this section, 

produce means 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. 

(b) To apply for an exemption under 

this section, the producer shall submit 

the request to the Board or other party 

as designated by the Board—on a form 

provided by the Board—at any time 

initially and annually thereafter on or 

before January 1 as long as the producer 

continues to be eligible for the 

exemption. 

(c) The request shall include the 

following: The producer’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

for an assessment exemption. 

(d) If the producer complies with the 

requirements of this section, the Board 

or designee will grant the exemption 

and issue a Certificate of Exemption to 

the producer within 30 days of receipt 

of the producer’s application. 

(e) The producer shall provide a copy 

of the Certificate of Exemption to each 

person responsible for collecting and 

remitting the assessment. 

(f) The person responsible for 

collecting and remitting the assessment 

shall maintain records showing the 

exempt producer’s name and address 

and the exemption number assigned by 

the Board or designee. 

(g) An importer who meets the criteria 

in paragraph (a) of this section may 

submit documentation to the Board and 

request an exemption from assessment 

on 100 percent organic cattle or beef and 

beef products’on a form provided by the 

Board’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 

22702 Federal Register / Vol. 69, No. 80 / Monday, April 26, 2004 / Proposed Rules 

shall include a copy of the organic farm 

or organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502) and a signed 

certification that the applicant meets all 

of the requirements specified for an 

assessment exemption. 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 30 

days of receipt of the importer’s 

application. The Board will also issue 

the importer a 9-digit alphanumeric 

Harmonized Tariff Schedule (HTS) 

classification valid for 1 year from the 

date of issue. This HTS classification 

should be entered by the importer, in 

the appropriate location as determined 

by the U.S. Customs Service, on the 

Customs entry documentation. Any line 

item entry of 100 percent organic cattle 

or beef and beef products bearing this 

HTS classification assigned by the 

Board will not be subject to 

assessments. 

PART 1280—LAMB RESEARCH AND 

PROMOTION 

42. The authority citation for Part 

1280 is revised to read as follows: 

Authority: 7 U.S.C. 7411–7425 and 7 

U.S.C. 7401. 

43. Section 1280.406 is added to read 

as follows: 

§ 1280.406 Exemption. 

(a) A person who produces and 

markets solely 100 percent organic 

products, and who does not produce 

any conventional or non-organic 

products, shall be exempt from the 

payment of assessment with respect to 

any ovine animals or lamb and lamb 

products that are produced on a 

certified organic farm as defined in 

section 2103 of the Organic Foods 

Production Act of 1990 (7 U.S.C. 6502). 

For purposes of this section, produce 

means 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. A person is 

a producer, seed stock producer, feeder, 

exporter, or first handler. 

(b) To apply for an exemption under 

this section, the person shall submit the 

request to the Board—on a form 

provided by the Board—at any time 

initially and annually thereafter on or 

before January 1 as long as the person 

continues to be eligible for the 

exemption. 

(c) The request shall include the 

following: the person’s name and 

address, a copy of the organic farm or 

organic handling operation certificate 

provided by a USDA-accredited 

certifying agent as defined in section 

2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502), and a 

signed certification that the applicant 

meets all of the requirements specified 

for an assessment exemption. 

(d) If the person complies with the 

requirements of this section, the Board 

will grant the exemption and issue a 

Certificate of Exemption to the producer 

within 30 days of receipt of the person’s 

application. 

(e) An exempt producer shall provide 

a copy of the Certificate of Exemption to 

each person to whom the producer sells 

ovine animals or lamb and lamb 

products. The Certificate of Exemption 

must accompany the ovine animals 

through the production chain to the 

person responsible for remitting the 

assessment to the Board. 

(f) The person shall maintain records 

showing the exempt producer’s name 

and address and the exemption number 

assigned by the Board. 

Dated: April 19, 2004. 

A. J. Yates, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 04–9259 Filed 4–23–04; 8:45 am] 

BILLING CODE 3410–02–P