Compilation of Rules and Regulations of the State of Georgia › Department 40 - RULES OF GEORGIA DEPARTMENT OF AGRICULTURE › Chapter 40-7 - FOOD DIVISION REGULATIONS › Subject 40-7-8 - ADDITIONAL REGULATIONS APPLICABLE TO VIDALIA ONIONS › Rule 40-7-8-.04 - Certification Mark Agreement

Current through Rules and Regulations filed through June 27, 2024
(1) Any person, entity, or business
				organization desiring to (a) grow; (b) pack; (c) process; (d) market; (e) sell
				onions as Vidalia® onions or Vidalia® green onions; and/or (f) use the
				"
Vidalia®
" Mark on products containing Vidalia® onions
				or Vidalia® green onions, must enter into an agreement with the Georgia
				Department of Agriculture for the use of the registered U. S. Certification
				Mark "
Vidalia®
".
(2) The Commissioner shall establish the
				terms and conditions of the agreement annually.
(3) The royalty/license fees shall be paid to
				and collected by the Georgia Department of Agriculture for all processed
				Vidalia® onions and for all products that use and incorporate Vidalia®
				onions in any form and shall be $0.005 for six ounces, or portion or product
				thereof. The royalty/license fee may be adjusted by the Commissioner upon
				renewal of the agreement but in no circumstance be greater that $0.005 for six
				ounces, or portion or product thereof. The only exceptions is in the case of
				frozen products or meat products that use and incorporate Vidalia® onions
				in any form shall be $0.001 for six ounces, or portion thereof.
(4) To calculate the royalty/license fees,
				the processors report to the Department the total amount of product in pounds,
				the poundage is then converted into weighted ounces, divide by six, and
				calculate the fee based on $0.005 for every six ounces.
(a) Example 1: A processor produces 100
				pounds of Vidalia® onion product. The processor sells the product in 200
				eight ounce bottles.
100 lbs x 16 (ounces) =1600 ounces.
1600 ounces ÷ 8 = 200 products (containing 8
				  ounces)
First six ounces (of the 8 ounce product) =
$0.005 is assessed
$0.005 x 200 products = $1.00 for first six ounces
Remaining two ounces (of the 8 ounce product) = $0.005
$0.005 x 200 products (remaining portion) = $1.00
Thus $2.00 in royalty/license fees are due and owing by the
				  processor and to be collected by the Georgia Department of Agriculture.
(b) Example 2: A processor
				produces 500 pounds of Vidalia® onion product. The processor sells the
				product in 200 twenty-five ounce containers.
500 lbs x 16 (ounces) = 8000 ounces
8000 ounces ÷ 25 = 320 products (containing 25
				  ounces)
First six ounces (of the 25 ounce product) =
$0.005 is assessed
$0.005 x 320 products = $1.60 for first six ounces
Second six ounces (of the 25 ounce product) =$0.005 is
				  assessed
$0.005 x 320 products = $1.60 for second six ounces
Third six ounces (of the 25 ounce product) =
$0.005 is assessed
$0.005 x 320 products = $1.60 for third six ounces
Fourth six ounces (of the 25 ounce product) =
$0.005 is assessed
$0.005 x 320 products = $1.60 for fourth six ounces
Remaining one ounce (of the 25 ounce product) = $0.005
$0.005 x 320 products (remaining portion) = $1.60
Thus $8.00 in royalty/license fees are due and owing by the
				  processor and to be collected by the Georgia Department of Agriculture.
(c) Example 3: A processor
				produces 500 pounds of Vidalia® onion product in frozen form (e.g., frozen
				onion rings) or in a meat product. The processor sells the product in 500
				sixteen ounce packages.
500 lbs x 16 (ounces) = 8000 ounces
8000 ounces ÷ 16 = 500 packages (containing 16 ounces)
First six ounces (of the 16 ounce package) = $0.001 is
				  assessed
$0.001 x 500 products = $0.50 for first six ounces
Second six ounces (of the 16 ounce product) = $0.001 is
				  assessed
$0.001 x 500 products = $0.50 for the second six
				  ounces
Remaining four ounces (of 16 ounce product) = $0.001 is
				  assessed
$0.001 x 500 products (remaining portion) = $0.50 for
				  remaining four ounces
Thus $1.50 in royalty/license fees are due and owing by the
				  processor and to be collected by the Georgia Department of Agriculture.