UNITED STATES DEPARTMENT OF AGRICULTURE 

AGRICULTURAL MARKETING SERVICE 

BEFORE THE ADMINISTRATOR 

) 

Inre: ) 

United Intertrade, Inc. ) 

) Administrator's Decision 

Houston, Texas ) APL-058-19 

) 

This Decision responds to an appeal (APL-058-19) of a Notice ofDenial of Certification 

under the National Organic Program issued to United Intertrade, Inc. (United) ofHouston, Texas 

by the Texas Department ofAgriculture (TDA). The operation has been deemed not in 

compliance with the Organic Foods Production Act of 1990 (Act)1and the U.S. Depaiiment of 

Agriculture (USDA) organic regulations.2 

BACKGROUND 

The Act authorizes the Secretary to accredit agents to certify crop, livestock, wild crop, 

and/or handling operations to the USDA organic regulations (7 C.F.R. Part 205). Certifying 

agents also initiate compliance actions to enforce prograin requirements, as described in section 

205.662, Noncompliance procedure for certified operations. Persons subject to the Act who 

believe they are adversely affected by a noncompliance decision of a ce1iifying agent may appeal 

such decision to the USDA Agricultural Marketing Service (AMS) pursuant to § 205.680 

1 7 U.S.C. 6501-6522 2 7 C.F.R. Part 205 

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Adverse Action Appeals Process - General, and§ 205.681, Appeals ofthe USDA organic 

regulations. 

FINDINGS OF FACT 

1. On January 9, 2018, United applied for organic certification as a handler. 

2. On April 18, 2018, TDA conducted an inspection ofUnited's operation. 

3. On September 4, 2018, TDA issued a Notice ofNoncompliance. 

4. On Februaiy 25, 2019, TDA issued a Notice ofDenial of Certification. 

5. On April 15, 2019, TDA rejected United's request for mediation. 

6. On May 29, 2019, United filed an Appeal with NOP. 

DISCUSSION 

The USDA organic regulations at 7 C.F.R. 205.201, Organic production and handling 

system plan, state that, "(a) The producer or handler of a production or handling operation, 

except as exempt or excluded under §205.101, intending to sell, label, or represent agricultural 

products as "100 percent organic," "organic," or "made with organic (specified ingredients or 

food group( s) )" must develop an organic production or handling system plan that is agreed to by 

the producer or handler and an accredited certifying agent. An organic system plan must meet 

the requirements set forth in this section for organic production or handling. An organic 

production or handling system plan must include: (1) A description ofpractices and procedures 

to be performed and maintained, including the frequency with which they will be performed; (2) 

A list of each substance to be used as a production or handling input, indicating its composition, 

source, location(s) where it will be used, and documentation of commercial availability, as 

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applicable; (3) A description of the monitoring practices and procedures to be performed and 

maintained, including the frequency with which they will be performed, to verify that the plan is 

effectively implemented; (4) A description ofthe recordkeeping system implemented to comply 

with the requirements established in §205.103;(5) A description of the management practices and 

physical baniers established to prevent commingling of organic and nonorganic products on a 

split operation and to prevent contact of organic production and handling operations and 

products with prohibited substances; and ( 6) Additional information deemed necessary by the 

certifying agent to evaluate compliance with the regulations." 

The organic regulations at §205.400, General requirements for certification, state that, "A 

person seeking to receive or maintain organic certification under the regulations in this part must: 

(a) Comply with the Act and applicable organic production and handling regulations in this part; 

(b) Establish, implement, and update annually an organic production or handling system plan 

that is submitted to an accredited certifying agent as provided for in §205.200..." 

The organic regulations at §205.401, Application for certification, state that, "A person 

seeking ce1iification of a production or handling operation under this subpart must submit an 

application for certification to a certifying agent. The application must include the following 

infmmation: (a) An organic production or handling system plan, as required in §205.200... " 

TDA issued a Notice ofDenial ofCe1iification to United due to several unresolved 

noncompliances, despite prior notifications to United regarding the deficiencies in its application 

for certification. 

United states in its Appeal that it answered all ofTDA's questions and submitted all 

requested documentation; there were no areas of concern found during the inspection; and it 

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( ( 

experienced a 'merry-go-round' of questions from TOA, replying to TDA within 2 weeks, while 

TOA took 3 to 4 months to respond to their submissions. 

United applied for organic certification as a handler on January 9, 2018, after being in the 

coffee processing and packaging business under the name Mitalena Coffee since 1987 and 

deciding to enter the organic coffee business. United's subsequently-submitted Processor 

Organic System Plan (OSP) ofMarch 2, 2018, states its products will be 100% organic Mitalena 

Coffee and identifies the ingredients as Mitalena Coffee, but notes the label will only state 

'organic.' United provided separate answers to the Processor OSP questions on such matters as 

its internal control procedures, pest contamination and commingling, mislabeling of products, 

and cleaning and storage processes. 

On March 5, 2018, TDA wrote United stating that the application was incomplete and 

providing a list of deficiencies and documentation needed for the continued processing of 

United's application, including a complete diagram ofUnited's facility and a flow chart for the 

operation. TDA stated that United must also submit a detailed "written description ofcritical 

control points of potential contamination (with prohibited substances) and commingling of 

organic product and the control methods used to reduce such risks." TDA also stated that United 

must submit a detailed written description ofthe processing activities and handling procedures 

pe1fonned at the operation as well as internal quality control procedures. TDA listed specific 

items that must be addressed by United for each noncompliance. Lastly, TDA stated United 

must respond to recordkeeping inquiries in the application and submit a supplier summary sheet. 

On March 21, 2018, United submitted a 2018 Handler Ce1iification Year Organic 

Supplier Summary form identifying the supplier ofits organic green coffee beans as -

-which is certified in the United States b~ and certified 

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( 

by United submitted an orgaruc ce1tificate issued by -

but the certified operation is identified as not United didn't 

provide any explanation for this. United also submitted a ce1tificate for 

which was missing its first page. United identified the supplier of its Natural Pecan flavor, 

Natural Vanilla flavor, and Natural Hazelnut flavor (erroneously misnamed as a duplicate pecan 

flavor) as but under the ce1tifier column, United 

States "FDA." United submitted Organic Compliant Flavor Affidavits from 

pecan, vanilla and hazelnut flavors, which state that the specified flavor meets the 'natural 

flavor' definition of the Food and Drug Administration (FDA). 

On April 18, 2018, TOA conducted an inspection ofUnited's operation/facility. The 

Inspection Report does not note any concems in the various areas. TDA also submitted an 

Organic Inspection Findings sheet from the inspection which states that all areas are in 

compliance; the areas are processing categories; products manufactured and ingredients; 

processing and handling; sanitation' pest management; product labeling; materials used; and 

recordkeeping. 

However, on September 4, 2018, TDA issued a Notice ofNoncompliance again stating 

that United' s application was still lacking detailed written explanations of 1) c1itical control 

points ofpotential contamination and commingling of organic product and the control methods 

used to reduce such risks; 2) processing activities and handling procedures performed at the 

operation; and 3) internal quality control procedures. The notice reiterated the specific items that 

must be addressed under each. TDA further stated that United must submit copies ofthe actual 

processes and procedures rather than summary statements which United had previously 

submitted. Additionally, the notice states that United had incurred a $200.00 'corrective action 

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,·· 

l 

fee,' pursuant to TDA's fee schedule. TDA also stated that a review of United's OSP indicates 

that it is using nonorganic natural flavors as ingredients in its coffee which wasn't disclosed on 

the listing ofingredients and conflicts with United's identification on its application that its 

ingredients are 100% organic. IDA provided United options on how to address this discrepancy. 

The Notice ofNoncompliance also noted that United hadn't followed TDA's directions to attach 

copies of all labels used for certified organic products; a page was still missing from the organic 

certificate ofsupplier and United hadn' t clarified the relationship 

between identified as a supplier, and whose organic 

certificate was submitted. 

On September 24, 2018, United submitted a response to TDA stating that it followed 

TDA's application instructions step-by-step and made conections as needed. United then 

adch-essed the Notice ofNoncompliance point by point, first stating that it relies exclusively on 

-forits flavorings and -confirmedtheir flavoring is organic-compliant. 

United submitted an Order Confirmation from-showing United's order of8 pounds 

each ofnatural vanilla flavor, organic compliant pecan flavor, and organic compliant hazelnut 

flavor, as well as a Natural Flavor Product Questionnaire - NOP Usage, which 

completed for each flavor. United explained it segregated organic production from conventional 

production and described its practices to prevent contamination and commingling. 

United then provided written answers to each ofthe questions and items listed by TDA 

for 1) critical control points of potential contamination and commingling oforganic product and 

the control methods used to reduce such risks; 2) processing activities and handling procedures 

performed at the operation; and 3) internal quality control procedures. However, contrary to 

TDA's instructions in the September 4, 2018 Notice ofNoncompliance, United didn't provide 

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copies ofthe actual processes and procedures, i.e. a policy manual or written standards of 

operation; and instead again only provided what TOA had described as 'summary statements.' 

Lastly, United submitted a September 21, 2018 letter from which states that 

~uysonly organic coffee from certified operations and the coffee supplied to 

United comes from states that pmsuant to a 

conversation with TDA, they do not need to be organically certified for their trading ofthe 

coffee, and only the warehouse where the coffee is stored needs to be certified. United submitted 

the TDA~issued certificate of whose ce11ification is for handling services, 

including warehouse storage. -hasbeen certified since July 18, 2007. United had already 

submitted the-issued certificate of The complete certificate of 

was submitted. However, the requested labels weren't submitted. 

On December 13, 2018, TDA emailed United that it received United's response but that it 

was 'not in the correct fo1mat for efficient review.' Subsequently, on February 25, 2019, TDA 

issued the Notice ofDenial ofCertification pointing to United's statement in its September 24, 

2018 response that it wouJd use organic flavors. However, TDA stated that a review ofthe 

purchase order for flavors from-and the Natural Flavor Product Questionnaires for 

each ofthe 3 flavors do not substantiate United's claim that organic flavors would be used. TOA 

also found that United still hadn't attached copies ofall labels it planned on using and hadn't 

provided an overall description ofits physical location and facility. TDA again found that 

United had provided only summary statements in response to TDA's request for copies of 

U!iited's actual practices and procedures covering 1) critical control points ofpotential 

contamination and commingling of organic product and the control methods used to reduce such 

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risks; 2) processing activities and handling procedures performed at the operation; and 3) internal 

quality control procedures. 

After TDA denied United's request for mediation, United filed an Appeal on May 29, 

2019, contending that it answered all ofTDA's questions properly, provided all requested 

documentation, and an inspection found the operation to be in compliance with all regulations 

and requirements. United also questioned the need to rewrite all previous questions and answers 

on separate sheets of paper in detail. United further states that it is a small family-owned 

company with aging personnel; has needed to find new customers after losing 2 major accounts 

due to drastic changes in the coffee business; and has expended a lot of time, energy, and money 

to become organically certified. 

In conclusion, United has made an effort to comply with the organic regulations and 

TDA's requests, submitting documentation and responses to TDA's questions on several 

occasions. TDA has also tried to work with United to bring it into compliance, so as to be 

granted organic certification. However, TDA instructed United to submit copies of the actual 

practices and procedures covering critical control points and controls methods to reduce 

contamination and commingling risks; processing and handling procedures; and internal quality 

control procedures. While TDA had initially requested merely a written description of these 

practices and procedures in its March 5, 2018 letter to United, TDA stated in the September 4, 

2018 Notice ofNoncompliance that United needed to submit copies ofthe actual practices and 

procedures rather than summary statements. However, United's September 24, 2018 response to 

the notice again provided only summary statements addressing the topics and answering TDA's 

questions. On December 13, 2018, TDA didn't elaborate in its email to United stating that the 

response wasn't in the 'correct fonnat for efficient review,' however, the records show that 

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United had still not submitted copies ofits actual practices and procedures as cited in the denial 

of certification. United's Appeal also contained only copies ofits previously submitted 

responses/summary statements regarding the practices and procedures. 

The organic regulations at 7 CFR 205.401 state that a person seeking certification of a 

production or handling operation must submit an application which includes "an organic 

production or handling system plan, as required in Section 205.200." The regulations at Section 

205.201 state that an organic production or handling system plan must include, "(1) A 

description of practices and procedures to be performed and maintained, including the frequency 

with which they will be performed ...(3) A description ofthe monitoring practices and 

procedures to be perfo1med and maintained, including the frequency with which they will be 

performed, to verify that the plan is effectively implemented; ... ( 5) A description ofthe 

management practices and physical ban'iers established to prevent commingling of organic and 

nonorganic products on a split operation and to prevent contact of organic production and 

handling operations and products with prohibited substances; and (6) Additional information 

deemed necessary by the certifying agent to evaluate compliance with the regulations." To date, 

United hasn't submitted the actual practices and procedures it plans to implement for its organic 

coffee production, i.e. a policy manual or written standards of operation, as requested by TDA. 

Further, United's OSP doesn't contain the required descriptions ofthe practices and procedures. 

Additionally, United didn't submit the requested labels for its planned organic products. 

CONCLUSION 

The USDA organic regulations assure consumers that products with the USDA organic 

seal meet consistent, uniform standards. Key to these standards is that products with the USDA 

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organic seal are produced and handled in accordance with the organic regulations. However, 

United has been unable to comply with the organic regulations at 7 C.F.R. §205.201; 7 C.F.R. 

§205.400; and 7 C.F.R. §205.401. Therefore, United is ineligible for certification at this time. 

DECISION 

The appeal is denied and TDA's Notice of Denial of Certification is upheld. United is 

denied organic certification at this time. However, pursuant to 7 CFR 205.405(e), United may 

apply for ce1tification again at any time with any ce1tifying agent. Any application must be 

accompanied by evidence demonstrating correction of each noncompliance and corrective 

actions taken to comply with and remain in compliance with the Act and the organic regulations. 

Additionally, attached to this formal Administrator's Decision denying United's appeal is a 

Request for Hearing form. United has thiliy (30) days to request an administrative hearing 

before an Administrative Law Judge. 

Done at Washington, D.C., on this t..1-1( 

day of ,IJ,.ic-1,r. , 2019. 

Bruce Summers 

Administrator 

Agricultural Marketing Service 

Pagcl0ofl0