Final Rule Exemption of Organic Products f/Assessment

Vol. 80

Thursday,

No. 251

December 31, 2015

Part V

Department of Agriculture

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Agricultural Marketing Service
7 CFR Parts 900, 1150, 1160, et al.
Exemption of Organic Products From Assessment Under a Commodity
Promotion Law; Final Rule

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

Agricultural Marketing Service
7 CFR Parts 900, 1150, 1160, 1205,
1206, 1207, 1208, 1209, 1210, 1212,
1214, 1215, 1216, 1217, 1218, 1219,
1220, 1221, 1222, 1230, 1250, 1260, and
1280
[Document Number AMS–FV–14–0032]

Exemption of Organic Products From
Assessment Under a Commodity
Promotion Law
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:

This rule implements the
provisions of section 10004 of the
Agricultural Act of 2014 and modifies
the organic assessment exemption
regulations under 23 Federal marketing
orders and 22 research and promotion
programs (commodity promotion
programs). This rule amends the current
regulations to allow persons that
produce, handle, market, process,
manufacture, feed, or import ‘‘organic’’
and ‘‘100 percent organic’’ products to
be exempt from paying assessments
associated with commodity promotion
activities, including paid advertising,
conducted under a commodity
promotion program administered by the
Agricultural Marketing Service (AMS),
regardless of whether the person
requesting the exemption also produces,
handles, markets, processes,
manufactures, feeds, or imports
conventional or nonorganic products.
Currently, only persons that exclusively
produce and market products certified
as 100 percent organic are eligible for an
exemption from assessments under
commodity promotion programs. This
rule expands the exemption to cover all
‘‘organic’’ and ‘‘100 percent organic’’
products certified under the National
Organic Program regardless of whether
the person requesting the exemption
also produces, handles, markets,
processes, manufactures, feeds, or
imports conventional or nonorganic
products.

SUMMARY:

Effective February 29, 2016.
FOR FURTHER INFORMATION CONTACT:
Barry Broadbent, Senior Marketing
Specialist, or Michelle Sharrow, Branch
Chief, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938; or email:
[email protected], or
[email protected].

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DATES:

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Prior
documents in this proceeding:
Proposed rule; Published in the
Federal Register December 16, 2014 (79
FR 75006).
Proposed rule; Extension of comment
period; Published in the Federal
Register January 15, 2015 (80 FR 2060).

SUPPLEMENTARY INFORMATION:

DEPARTMENT OF AGRICULTURE

Executive Order 12866, Executive
Order 13563, and Executive Order
13175
This final rule is being issued by the
Department of Agriculture (USDA) with
regard to Federal marketing orders in
conformance with Executive Orders
12866, 13563, and 13175.
With regard to research and
promotion programs, Executive Orders
12866 and 13563 direct agencies to
assess all costs and benefits of available
regulatory alternatives and, if regulation
is necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. This action has
been designated as a ‘‘non-significant
regulatory action’’ under section 3(f) of
Executive Order 12866. Accordingly,
the Office of Management and Budget
has waived the review process.
Additionally, with regard to research
and promotion programs, this action has
been reviewed in accordance with the
requirements of Executive Order 13175,
Consultation and Coordination with
Indian Tribal Governments. The review
reveals that this regulation will not have
substantial and direct effects on Tribal
governments and will not have
significant Tribal implications.
Executive Order 12988
Agricultural Marketing Agreement Act
of 1937
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect.
Beef Promotion and Research Act of
1985
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 11 of the
Beef Promotion and Research Act of
1985 (7 U.S.C. 2910) provides that it
shall not preempt or supersede any
other program relating to beef
promotion organized and operated
under the laws of the United States or
any State.

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Commodity Promotion, Research, and
Information Act of 1996
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 524 of
the Commodity Promotion, Research,
and Information Act of 1996 (7 U.S.C.
7423) provides that it shall not affect or
preempt any other Federal or State law
authorizing promotion or research
relating to an agricultural commodity.
Cotton Research and Promotion Act of
1966
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect.
Dairy Production Stabilization Act of
1983
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 4512(a)
of the Dairy Production Stabilization
Act of 1983 provides that nothing in this
Act may be construed to preempt or
supersede any other program relating to
dairy product promotion organized and
operated under the laws of the United
States or any State.
Egg Research and Consumer
Information Act of 1974
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect.
Fluid Milk Promotion Act of 1990
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect.
Hass Avocado Promotion, Research and
Information Act of 2000
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 1212(c)
of the Hass Avocado Promotion,
Research and Information Act of 2000 (7
U.S.C. 7811) provides that nothing in
this Act may be construed to preempt or
supersede any program relating to Hass
avocado promotion, research, industry
information, and consumer information
organized and operated under the laws
of the United States or of a State.
Mushroom Promotion, Research, and
Consumer Information Act of 1990
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 1930 of

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations
the Mushroom Promotion, Research,
and Consumer Information Act of 1990
(7 U.S.C. 6109) provides that nothing in
this Act may be construed to preempt or
supersede any other program relating to
mushroom promotion, research,
consumer information or industry
information organized and operated
under the laws of the United States or
any State. Popcorn Promotion, Research,
and Consumer Information Act of 1996.
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 580 of
the Popcorn Promotion, Research, and
Consumer Information Act (7 U.S.C.
7489) provides that nothing in this Act
preempts or supersedes any other
program relating to popcorn promotion
organized and operated under the laws
of the United States or any State.
Potato Research and Promotion Act of
1971
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect.

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Pork Promotion, Research and
Consumer Information Act of 1985
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 1628 of
the Pork Promotion, Research, and
Consumer Information Act of 1985 (7
U.S.C. 4817) states that the statute is
intended to occupy the field of
promotion and consumer education
involving pork and pork products and of
obtaining funds thereof from pork
producers. The regulation of such
activity (other than a regulation or
requirement relating to a matter of
public health or the provision of State
or local funds for such activity) that is
in addition to or different from the Pork
Act may not be imposed by a State.
Soybean Promotion, Research, and
Consumer Information Act
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Additionally,
section 1974 of the Soybean Promotion,
Research, and Consumer Information
Act (7 U.S.C. 6309) provides, with
certain exceptions, that nothing in the
Soybean Act may be construed to
preempt or supersede any other program
relating to soybean promotion, research,
consumer information, or industry
information organized under the laws of
the United States or any State. One
exception in the Soybean Act concerns
assessments collected by Qualified State

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Soybean Boards (QSSBs). The exception
provides that, to ensure adequate
funding of the operations of QSSBs
under the Soybean Act, no State law or
regulation may limit or have the effect
of limiting the full amount of
assessments that a QSSB in that State
may collect, and which is authorized to
be credited under the Soybean Act.
Another exception concerns certain
referenda conducted during specified
periods by a State relating to the
continuation of a QSSB or State soybean
assessment.

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

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

Background
Section 10004 of the Agricultural Act
of 2014 (2014 Farm Bill) (Pub. L. 113–
79) amended Section 501 of the Federal
Agriculture Improvement and Reform
Act of 1996 (FAIR Act) (7 U.S.C. 7401)
on February 7, 2014. Section 501 of the
FAIR Act establishes certain provisions
for generic commodity promotion
programs created under the various
commodity promotion laws. Section 501
of the FAIR Act was previously
amended in May 2002, by Section 10607
of the Farm Security and Rural
Investment Act (2002 Farm Bill) (Pub. L.
107–171) to exempt persons that
produced and marketed solely 100
percent organic products, and who did
not otherwise produce or market any
conventional or nonorganic products,
from the payment of an assessment for
commodity promotion program
activities under a commodity promotion
law.
Section 10004 of the 2014 Farm Bill
subsequently expanded the organic
assessment exemption to apply to any
agricultural commodity that is certified
as ‘‘organic’’ or ‘‘100 percent organic’’ as
defined by the National Organic
Program (NOP) (7 CFR part 205). The
amendment further requires the
Secretary of Agriculture to promulgate
regulations concerning the eligibility
and compliance procedures necessary to
implement the exemption. Consistent
with that provision of the 2014 Farm
Bill, this final rule amends the organic
assessment exemption provisions
contained in 23 Federal marketing
orders and 22 research and promotion
programs to cover all certified ‘‘organic’’
or ‘‘100 percent organic’’ products of a
producer, handler, marketer, processor,
manufacturer, feeder, or importer
regardless of whether the agricultural
commodity subject to the exemption is
produced, handled, marketed,
processed, manufactured, fed, or
imported by a person that also
produces, handles, markets, processes,
manufactures, feeds, or imports
conventional or nonorganic agricultural
products, including conventional or

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nonorganic agricultural products of the
same agricultural commodity as that for
which the exemption is claimed.
On December 16, 2014, a proposed
rule was published in the Federal
Register (79 FR 75006) inviting
comments on proposed modifications to
the organic assessment exemption
regulations under 23 Federal marketing
orders and 22 research and promotion
programs. Interested parties were
provided 30 days to comment on the
proposed amendments. The comment
period initially ended on January 15,
2015. However, at the request of 14
commenters, 11 of which represented a
commodity board/committee/council,
the comment period was extended to
February 17, 2015 (80 FR 2060,
published January 15, 2015).
In this final rule, USDA is making
revisions to the general regulations
affecting the 23 marketing order
programs established under the AMAA.
In addition, USDA is making similar
amendments to the orders, plans and/or
regulations of the 22 research and
promotion programs administered by
AMS. Also, USDA is terminating the
existing provisions in § 1209.52 of the
mushroom research and promotion
order that are not consistent with
amendments to the order’s organic
assessment exemption provisions
contained in § 1209.252. The
termination of § 1209.52(a)(2) and (a)(3)
is authorized by § 1209.71(a) of the
order. Lastly, while the existing organic
exemption provisions will terminate in
§ 1209.52 of the order, this rule
establishes revised organic exemption
provisions in section § 1209.252(a) of
the regulations.
Consistent with the provisions of the
2014 Farm Bill, this final rule modifies
the current regulatory provisions that
exempt organic producers, handlers,
first handlers, marketers, processes,
manufacturers, feeders, and importers
from the payment of commodity
promotion program assessments used to
fund commodity promotion activities,
including paid advertising, under a
commodity promotion law.
Summary of Changes From the
Proposed Rule
This final rule is different from the
proposed rule in a number of respects.
The final rule has been revised to
improve the clarity of certain
provisions, to maintain conformity with
the provisions of the FAIR Act, and to
establish or promote consistency across
all of the commodity promotion
programs. The modifications to the
proposed rule, as detailed herein, do not
substantially alter the regulatory effect
of the originally proposed text.

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Specifically, this final rule revises the
organic assessment exemption eligibility
requirements for mushrooms contained
in § 1209.252(a) to add clarity and to
promote consistency with the organic
assessment exemption requirements
contained in § 900.700 and the other 21
research and promotion orders, plans,
and/or regulations.
In addition, this final rule removes a
current provision included in 14
research and promotion orders, plans,
and/or regulations (7 CFR parts 1150,
1205, 1207, 1209, 1210, 1216, 1218,
1219, 1220, 1221, 1230, 1250, 1260, and
1280) that addresses the exemption
eligibility of products produced and
marketed under an organic system plan
but not sold, labeled, or represented as
organic. The provision was removed to
align the modified organic assessment
exemption regulations with the FAIR
Act.
Lastly, this final rule makes technical,
non-substantive changes to the
regulatory text to aid clarity and
promote uniformity in all of the organic
assessment exemption regulations
contained herein. This includes
repositioning certain paragraphs in
§ 1212.53 to eliminate potential
confusion between the program’s
minimum quantity and organic
assessment exemption procedures.
Summary of Comments
USDA received 731 timely comments
from individuals, conventional and
organic producers, industry
organizations, research and promotion
boards/councils, marketing order
boards/committees, and organic trade
associations. Of those comments, 550
were in favor of the rule, 10 opposed the
rule, and 33 did not state a position.
USDA determined that 138 of the
comments were non-substantive in
nature and did not address the merits of
the proposed rule.
Fourteen of the comments were
submitted by entities requesting an
extension of the original comment
period. Nine of the fourteen entities that
submitted comments requesting an
extension submitted additional
comments after the comment period
extension was granted by USDA.
Of the substantive comments
submitted after the comment period
extension, 20 were from research and
promotion or marketing order boards/
councils/committees, 15 were from
organic agriculture trade associations, 5
were from agriculture trade associations,
and 5 were from large organic handlers.
The comments largely fall into three
broad categories. One category
addresses issues of eligibility and the
application of the FAIR Act. Another

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category addresses issues concerning
the assessment exemption reporting
requirements and safeguards. The last
category addresses administrative and
procedural issues.
Eligibility of Organic Products
Entering Conventional Markets:
Fourteen of the research and promotion
programs’ organic assessment
exemption regulations currently contain
a provision specifying that agricultural
commodities produced and marketed
under an organic system plan, but not
sold, labeled, or represented as organic
when the product is sold, shall not
disqualify a producer from the organic
assessment exemption. Within the
provision, the stated reasons for
conventional sales of organic products
include lack of demand for organic
products, isolated use of antibiotics for
humane purposes, chemical or pesticide
use as the result of State or emergency
spray programs, and crops from a buffer
area. The provision is currently
included in 14 research and promotion
orders, plans, and/or regulations, but is
absent from the regulations covering the
8 remaining research and promotion
programs and from the regulations that
cover Federal marketing orders.
The provision was incorporated into
the regulations to ensure that incidental
non-conformance with the 2002 Farm
Bill threshold requirement of ‘‘produces
and markets solely 100 percent organic
products’’ would not disqualify a
producer from eligibility for an organic
assessment exemption. Without the
provision, under a strict interpretation
of the 2002 Farm Bill statute, a certified
organic producer under the NOP who
produced and marketed any products
through any conventional marketing
channel, for any reason, would be
ineligible for an organic assessment
exemption. The provision was intended
to reconcile administrative
inconsistencies between the 2002 Farm
Bill language and the intent of Congress
in creating the exemption. USDA
determined that certain common and
acceptable production and marketing
practices of NOP certified organic
production operations could be allowed
without jeopardizing the integrity of the
exemption, even if some of those
practices led to products entering
conventional markets.
Under the provision, organic product
produced in excess of demand in the
organic market is permitted to enter a
conventional market without
jeopardizing the entity’s organic
assessment exemption status.
Additionally, it allows product from
buffer zones on certified organic
production operations that could not
otherwise be marketed as organic in an

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organic market outlet to enter the
conventional market without affecting
the entity’s organic assessment
exemption eligibility. Lastly, it allows
product that is subjected to chemicals or
pesticides as a result of a State or
emergency spray program, and the
isolated use of antibiotics for humane
purposes, to enter the conventional
market without penalty.
In the proposed rule, USDA proposed
making modifications to the provision
and retaining it in the regulations of the
14 research and promotion programs
that currently contain the language.
A number of the commenters
submitted comments with regard to the
provision as proposed. Several
commenters suggested that the
provision be expanded to all commodity
promotion programs to promote
uniformity. A number of other
commenters assert that the provision
creates a free rider situation when
organic product exempt from
assessment is allowed to enter the
conventional market. They claim that
organic product exempt from
assessment would have an unfair
competitive cost advantage when
competing with conventionally
produced product in the conventional
market. In addition, the commenters
asserted that exempt organic product in
the conventional market would benefit
from commodity promotion programs
without having contributed to the cost
of the promotion program. The
commenters recommended the removal
of the provision from the 14 programs
that currently contain such language to
rectify the inequitable situation moving
forward.
After further consideration, with the
expansion of the organic assessment
exemption eligibility requirements in
the 2014 Farm Bill to include split
operations, any provision in the organic
assessment exemption regulations to
make allowances for product entering
conventional markets in an effort to
preserve an applicant’s eligibility for the
organic assessment exemption will no
longer be necessary moving forward. In
addition, if perpetuated, the provision
could facilitate an unfair competitive
environment and negatively impact
conventional producers and marketers.
Therefore, for the reasons discussed
above, USDA has removed the
aforementioned provision from the 14
research and promotion programs that
currently have the language in their
orders/plans/regulations. As such, as a
result of the modifications contained
herein, all product that enters a
conventional or non-organic market
outlet will be subject to assessment in
accordance with the respective

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commodity promotion program’s order,
plan, or regulation.
Definition of ‘‘Producer’’: All of the
orders, plans, and/or regulations
covered under this rule define the
entities that are subject to the regulatory
provisions of the program (e.g.
producer, handler, marketer, processor,
manufacturer, feeder, importer, etc.).
Many of those orders/plans/regulations
have provisions included in such
definitions under which entities may be
exempt from regulation and/or the
payment of assessments.
A number of commenters
recommended amending the definition
of ‘‘producer’’ (also ‘‘handler,’’
‘‘processor,’’ and ‘‘importer’’) in each of
the orders, plans, and/or regulations
covered under this rule for a blanket
exclusion of participation from all
program activities for entities who
receive an organic assessment
exemption. The commenters believe
that entities that are exempt from the
payment of assessments should not be
allowed to be appointed board members
and vote in referenda.
Currently, eight research and
promotion programs specify a minimum
quantity of product (referred to as the
‘‘de minimis’’ amount) that must be
produced, handled, processed, or
imported for an entity to be required to
pay the commodity promotion
assessment (7 CFR parts 1160, 1206,
1207, 1208, 1209, 1210, 1215, and
1221). For those programs, entities that
produce, handle, process, or import
quantities of product below a specified
de minimis amount are, by definition,
not required to pay assessments. The
other research and promotion programs
do not have de minimis as part of the
definition of regulated entities, but
rather within the assessment section of
the programs’ regulatory provisions.
Entities that are exempt by definition
and/or entities that receive an
assessment exemption are ineligible for
nomination for board membership and
for voting in referenda. While an entity
operating below the de minimis level
may be exempt from assessment
provisions of an order/plan/regulation,
all regulated entities are required to
maintain reports to carry out the
provisions of the program.
The Fluid Milk Promotion Program (7
CFR part 1160) is an example of a
research and promotion program that
specifies a de minimis amount in the
definition. The definition specifically
states ‘‘the term fluid milk processor
shall not include in each of the
respective fiscal periods those persons
who process and market not more than
3,000,000 pounds of such fluid milk
products during the representative

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month.’’ As such, since the provisions
of the program only apply to fluid milk
processors, and the definition of fluid
milk processor does not include entities
that process under 3,000,000 pounds of
fluid milk a month, an entity that
processes less than 3,000,000 pounds of
fluid milk a month is not subject to the
assessment provisions of the program,
but must still report the quantity of fluid
milk processed for the representative
month of each fiscal period to verify its
regulatory status.
An example of a research and
promotion program that specifies a de
minimis quantity in its assessment
regulation is blueberries. A producer
under the Blueberry Promotion,
Research, and Information Order (7 CFR
part 1218) is defined as ‘‘any person
who grows blueberries in the United
States for sale in commerce, or a person
who is engaged in the business of
producing, or causing to be produced
for any market, blueberries beyond the
person’s own family use and having
value at first point of sale.’’ However,
any producer who produces less than
2,000 pounds of blueberries annually,
and applies for such exemption, is not
required to pay assessments. Blueberry
producers who produce less than 2,000
pounds of blueberries however continue
to be subject to the reports, books, and
recordkeeping requirements in the
blueberry order.
Since representation on the
commodity promotion program boards
is already reserved for regulated entities
that financially participate in a
commodity promotion program, it is
unnecessary to amend program
definitions. This includes all
exemptions under these programs,
including organic exemptions. Under
existing procedures for the previous
more narrowly defined organic
exemption, entities that are exempt from
paying assessments as a result of the
organic exemption cannot participate in
the program. This will not change with
the expansion of the organic exemption.
Entities subject to the provisions of an
order that produce, handle, market,
process, manufacture, feed, or import
both organic and conventional or
nonorganic products (split operations),
and are granted an organic assessment
exemption are still subject to assessment
on their conventional or nonorganic
product. Under those circumstances,
with the payment of any amount of an
assessment, no matter how small, an
entity would be eligible to participate in
the program’s activities.
USDA notes that the commenters’
recommendation could only be applied
to the research and promotion programs
and not Federal marketing orders, as the

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organic assessment exemption for
Federal marketing orders only applies to
the percentage of the assessment that is
allocated to fund marketing promotion
activities. As such, even entities exempt
from marketing promotion assessments
on their organic products will be
obligated to pay assessments to fund the
order’s other operational and
administrative expenses. As a result,
entities regulated under a marketing
order, even if exempt from some
percentage of assessment, are eligible to
participate in the program.
Based on the above, no changes have
been made to the regulations as a result
of the comments submitted.
Determination of ‘‘Marketing
Promotion Activities’’ Under
Commodity Promotion Laws:
Under the FAIR Act, a ‘‘commodity
promotion law’’ is defined as ‘‘a Federal
law that provides for the establishment
and operation of a promotion program
regarding an agricultural commodity
that includes a combination of
promotion, research, industry
information, and/or consumer
information activities, is funded by
mandatory assessments on producers or
processors, and is designed to maintain
or expand markets and uses for the
commodity’’ (7 U.S.C. § 7401(a)). The
FAIR Act further establishes that the
exemption of certified organic products
from commodity promotion program
assessments be limited to ‘‘the payment
of assessments under a commodity
promotion law.’’
When the organic assessment
exemption was first established as a
result of 2002 Farm Bill amendments to
the FAIR Act, USDA interpreted the law
to apply to all of the activities of all
established and future commodity
promotion programs created ‘‘under a
commodity promotion law,’’ as defined.
Therefore, USDA amended all of the
research and promotion programs’
plans, orders, and/or regulations to
exempt entities that were solely 100
percent certified organic from payment
of the entire amount of a program’s
assessment.
However, regarding Federal marketing
orders, USDA interpreted the FAIR Act
to only apply to expenditures directly
related to marketing promotion
activities under a marketing order.
Under 7 U.S.C. 7401(a)(1), the definition
of ‘‘commodity promotion law’’
specifically narrows the term, as it
relates to marketing order programs, to
just include ‘‘the marketing promotion
provisions under section 8c(6)(I) of the
Agricultural Adjustment Act (7 U.S.C.
608c(6)(I)).’’ Therefore, in the
establishment of the organic assessment
exemption regulations for Federal

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marketing orders in § 900.700(a), USDA
defined the term ‘‘marketing
promotion’’ to mean ‘‘marketing
research and development projects, and
marketing promotion, including paid
advertising, designed to assist, improve,
or promote the marketing, distribution,
and consumption of the applicable
commodity.’’ Under § 900.700(d), the
organic assessment exemption is not
applicable to the portion of assessment
that directly funds the other authorized
activities of a marketing order, such as
minimum quality regulation, mandatory
inspection, container requirements,
volume control, or production research.
A number of commenters submitted
comments regarding the application of
the organic assessment exemption to
production research. Some of the
commenters believe that the
assessments allocated to fund
production research projects under a
research and promotion program should
not be subject to an organic assessment
exemption. The commenters believe
that production research has
applicability to all production within a
commodity’s industry and that organic
entities should contribute to the cost
along with other entities. In a contrary
position, many commenters believe that
all research, both production and
marketing oriented, has no benefit to the
organic industry and that the organic
industry should not be expected to fund
it. Commenters from both sides of the
issue submitted proposed changes to be
made to the regulations.
USDA believes that the provisions of
the FAIR Act have been properly
applied under both Federal marketing
orders and research and promotion
programs. Therefore, no changes have
been made to the regulations as a result
of the comments.
Reporting Requirement and Safeguard
Issues
Revised Reporting Requirements: All
of the Federal marketing orders and
research and promotion orders, plans,
and/or regulations contain reporting
requirements for the administration of
the organic assessment exemption. The
current application form necessary for
obtaining an organic assessment
exemption requires, among other things,
that the applicant list all of the
commodities that an applicant
produces, handles, markets, processes,
manufacturers, feeds, or imports. The
applicant must also certify that all of the
commodities listed are certified 100
percent organic, even for commodities
other than the commodity for which the
exemption is requested. This has been
the method employed by USDA to
ensure that an operation produced and

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marketed ‘‘solely 100 percent organic
products’’ as required by the FAIR Act
prior to the 2014 Farm Bill amendment.
This requirement translated into a
significant amount of the time required
by entities to fill out the current organic
assessment exemption request form.
The 2014 Farm Bill amendment to the
FAIR Act expanded the eligibility
criteria for organic assessment
exemptions to allow split operations,
which are entities that produce, handle,
market, process, manufacture, feed, or
import organic and conventional or
nonorganic products within the same
business operation. The FAIR Act
amendment renders the current
reporting requirement for full disclosure
of all commodities produced, handled,
marketed, processed, manufactured, fed,
or imported by an entity unnecessary
moving forward, as an applicant no
longer has to show that they are an
exclusively organic operation to be
granted an organic assessment
exemption. As such, the current organic
assessment exemption application
requirements in the regulations have
been revised to remove the requirement
that lists all of an entity’s commodities
on the organic assessment exemption
application form.
In addition, as a result of the modified
reporting requirements contained in the
regulations, the current approved
organic assessment exemption request
forms, Forms AMS–15 and FV–649, will
be modified accordingly. A more
detailed discussion regarding the
changes to these forms can be found
under the Paperwork Reduction Act
heading below.
Many commenters supported the
reduction in reporting requirements that
resulted from this rule. They believed
that reducing the paperwork burden on
organic entities, many of which are
small, would benefit the organic
industry. However, while the
commenters believed that the reduction
in required documentation was a
positive step, they recommended
abandoning the annual reapplication
requirement to reduce further the
paperwork burden on organic entities.
They suggest only requiring an entity
submit an initial application for an
organic assessment exemption and, if so
granted, making the exemption
perpetual. Additionally, several
commenters recommended tying the
organic assessment exemption to the
organic certificate that is issued under
the NOP by a USDA-accredited
certifying agent to a certified organic
operation, thus continuing eligibility for
the organic assessment exemption until
the applicant either surrenders their
exemption rights or ceases to operate

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organically. One commenter proposed
that greater synergy between the USDA–
AMS National Organic Program (AMS–
NOP) and the commodity promotion
programs could effectuate the
accountability necessary for perpetual
exemptions moving forward. One option
offered by the commenter was the
utilization of the AMS–NOP database by
commodity promotion programs to
safeguard assessment exemptions.
Another commenter suggested requiring
AMS–NOP to establish, maintain, and
provide access to a ‘‘revoked or
relinquished list’’ of operations that
have lost organic certification that
Federal marketing orders and research
and promotion programs could use to
facilitate the monitoring and
administration of an exempt entity’s
perpetual status.
A number of other commenters
support increasing the reporting
requirements to ensure compliance
under the expanded organic assessment
exemption. Under the modified
provisions effectuated herein, split
operations will now be allowed to
request and receive organic assessment
exemptions. As such, entities with some
organic products and some conventional
or nonorganic products will be allowed
to request an assessment exemption on
the organic portion of the products they
produce or market. Several commenters
recommended increasing the reporting
requirements for these split operations
to accurately account for the quantity of
product that will continue to be subject
to assessment. They believe that
requiring applicants to disclose both the
anticipated quantities of organic
product and conventional or nonorganic
product that the entity expects to
produce, handle, market, process,
manufacture, feed, or import will aide
in maintaining the integrity of each
program.
USDA believes that information
collection is an important part of every
commodity promotion program in
general, and is integral to the oversight
of the organic assessment exemption
under each of those commodity
promotion programs specifically. USDA
agrees with the commenters that
recommended increasing the
information collection regarding the
commodity research and promotion
programs and will further revise Form
AMS–15 accordingly. On the request
form, applicants will be required to selfidentify split operations and estimate
the assessable and non-assessable
quantities of product for the year.
Specifically, applicants must report the
estimated total quantity of product that
the applicant expects to produce,
handle, market, process, manufacture,

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feed, or import; the estimated quantity
of product that will be certified organic;
and the estimated quantity of product
that will be conventional or nonorganic.
In addition, if needed, all commodity
promotion programs have the ability,
within their orders, plans, and/or
regulations, to modify their reporting
requirements outside the scope of the
organic assessment exemption request
form. If additional information is
deemed necessary to administer a
commodity promotion program and
ensure its integrity with respect to the
organic assessment exemption, the
respective board/committee/council
could initiate rulemaking to that effect.
USDA also believes that it is
necessary to require applicants to
submit an application annually for the
proper administration of the organic
assessment exemption by the boards/
committees/councils. The oversight of
organic assessment exemptions will
necessitate the collection and retention
of current and accurate information
regarding the exempted entities.
Reliance on AMS–NOP to facilitate the
collection and dissemination of
information needed by the commodity
promotion programs to administer the
organic assessment exemption, as
suggested by commenters, is not
practical at this time.
Therefore, in light of the above
discussion, Form AMS–15 will be
further revised to require the necessary
information for commodity research and
promotion programs to properly
administer the organic assessment
exemption. No additional changes will
be made to Form FV–649 for Federal
marketing orders and no changes will be
made to the regulations as proposed.
Safeguard Provisions: All of the
Federal marketing orders and research
and promotion programs affected by this
rule have safeguards built into their
regulations to facilitate compliance. The
provisions most often employed by
commodity promotion programs are
reporting requirements, auditing
authority, and civil penalties for
noncompliance. The combination of
these provisions is what would be
utilized by the boards/committees/
councils to safeguard the organic
assessment exemption provisions of a
program.
A number of commenters submitted
recommendations for safeguarding the
organic assessment exemption against
abuse. Some commenters suggested
mandatory audits of firms that are
granted an organic assessment
exemption. Other commenters suggested
including on the exemption request
form explicit detail of the potential
penalties for the fraudulent use of an

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82011

organic assessment exemption (e.g.
‘‘The making of any false statement or
representation on this form, knowing it
to be false, is a violation of Title 18,
Section 1001 United States Code, which
provides for the penalty of a fine of
$10,000 or imprisonment of not more
than five years, or both.’’). Other
recommendations included requiring
AMS–NOP to submit information
regarding exempt parties to the
commodity promotion programs for
reconciliation with reports submitted
directly by the exempt parties to the
program.
USDA will be adding a statement
regarding the potential penalties for
fraudulent use of an organic assessment
exemption language to Form AMS–15 in
an effort to make it more consistent with
other exemption forms. This is in
addition to the other revisions
concerning the estimated amount of
product produced, handled, marketed,
processed, manufactured, fed, or
imported with an estimated quantity of
organic and conventional or nonorganic
product. The other safeguard provisions
currently contained in the regulations
(recordkeeping, reporting, and audit
requirements) are adequate for ensuring
compliance in the collection of
assessments from conventional or
nonorganic entities.
Administrative and Procedural Issues
A number of commenters
recommended that the regulations be
modified to clearly state that organic
producers, handlers, marketers,
processors, manufacturers, feeders, and
importers that are eligible for an organic
assessment exemption are not obligated
to apply for one and that they may
voluntarily continue to fund a
commodity promotion program.
USDA does not believe that the
inclusion of a clause of this nature in
the regulations, or on any form, is
necessary, as an organic assessment
exemption requires that an applicant
submit an application to become
eligible. The default for an entity subject
to regulation is to pay assessments on
all products produced, handled,
marketed, processed, manufactured, fed,
or imported, even entities that
produced, handled, marketed,
processed, manufactured, fed, or
imported organic products. Therefore,
no changes to the regulations will be
made as a result of this
recommendation.
Two commenters submitted
comments regarding the financial
impact that an organic assessment
exemption will have on a commodity
promotion program’s ability to operate.
The commenters believe that the

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assessment exemption will force
programs to cut back on operations or
increase assessment rates.
This action has been undertaken in
response to a Congressional mandate
and is not discretionary. Two
commenters recommended that
language be added to the organic
assessment exemption regulations for
each program to specify that the
exemption is only from Federal program
assessments and that organic entities
must still participate in, and pay
assessments to, any state and regional
commodity promotion programs that
may exist.
USDA does not control state or
regional commodity promotion
programs. Furthermore, USDA does not
address such programs in Federal
regulations to maintain a clear
separation of jurisdictions, authorities,
and powers. However, USDA
acknowledges that some state and
regional commodity promotion
programs work in concert with Federal
programs. As such, USDA will
encourage the boards/committees/
councils that oversee the Federal
commodity promotion programs to
remind entities that request a Federal
organic assessment exemptions that
there may be state and regional
commodity promotion program
assessments that are not exempted as
part of a Federal program exemption.
One commenter sought confirmation
that all future Federal marketing orders
and research and promotion programs
established after the effective date of
this rule would include an organic
assessment exemption similar to the
provisions contained herein.
Any new Federal marketing order
established under the AMAA would be
subject to the provisions of § 900.700. In
addition, the FAIR Act provides that the
organic assessment exemption be
applied to any commodity promotion
law. The definition of ‘‘commodity
promotion law’’ in the FAIR Act is
extended to ‘‘any other provision of law
enacted after April 4, 1996, that
provides for the establishment and
operation of an agricultural commodity
promotion program.’’ Therefore, the
commenter can reasonably expect that
all existing and future commodity
promotion programs will have an
organic assessment exemption provision
similar to that which is contained
herein. However, should an organic
research and promotion program be
established in the future, entities that
are currently exempt from payment of
commodity promotion program
assessments under an organic
exemption may be subject to the

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assessment provisions of an organic
research and promotion order.
One commenter stated that the
proposed rule did not define, and was
not consistent in the use of, the term
‘‘split operation.’’ The term ‘‘split
operation’’ is found in the current
regulatory provisions of each order,
plan, and/or regulation modified by this
rule. The term is used interchangeably
throughout this rule to describe an
entity that produces, handles, markets,
processes, manufactures, feeds, or
imports organic products, but also
produces, handles, markets, processes,
manufactures, feeds, or imports
conventional or nonorganic products of
the same or different agricultural
commodities. USDA does not believe
that a separate definition of ‘‘split
operation’’ is necessary in the
regulations.
A commenter questioned the language
regarding the eligibility of importers to
claim an organic assessment exemption.
The commenter recommended adding
language to the proposed regulations to
reflect that products certified as
‘‘organic’’ and ‘‘100 percent organic’’
under U.S. equivalency arrangements
established under the NOP were also
eligible for the exemption. Language to
that effect has been added to each of the
programs’ regulations that assess
importers (7 CFR parts 1150, 1205,
1206, 1207, 1208, 1209, 1210, 1212,
1214, 1217, 1218, 1219, 1221, 1222,
1230, and 1260).
One commenter suggested that several
of the provisions contained in each the
various programs are applied
inconsistently. Specifically, the
commenter believes that the regulations
concerning the timeframe that a
commodity promotion program board/
committee/council has to approve/
disapprove an application, how exempt
individuals demonstrate their
exemption to other parties, and the
effective date of the exemption should
be consistent among all programs.
USDA believes that the regulations
are as uniform as possible within the
unique provisions in each of the various
commodity promotion program orders,
plans, and/or regulations. Variations in
fiscal periods, assessment collection
procedures, regulated entities, and other
factors specific to a program make it
difficult to achieve complete
consistency across all programs.
Therefore, no changes have been made
as a result of these comments.
Three commenters believe that
entities that have been granted an
organic assessment exemption should
be required to disclose their exempt
status to the parties that purchase their
product. The commenters have observed

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that the market price of a commodity
often has a built in premium to account
for payment of an assessment to a
commodity promotion program and, by
not disclosing an organic entity’s
exemption status, an unfair economic
advantage could occur. To address
commenters concerns, AMS will amend
the current footnote contained in the
Federal milk marketing order Class I
price announcement related to the Fluid
Milk Promotion Order (7 CFR part
1160). Currently the footnote reads, ‘‘If
fluid milk processors market less than
3,000,000 pounds per month of fluid
milk products in consumer packages,
they are exempt from paying the 20
cents per hundredweight assessment.’’
USDA will include new language on the
Class I price announcements indicating
organic fluid milk processors may be
exempt from the fluid milk assessment.
One commenter had concerns about
the organic assessment exemption
regulations and how they are applied to
imported products. The commenter did
not feel that the regulations, as
proposed, were clear on the issuance of
Harmonized Tariff Schedule (HTS)
codes for imported products, whether or
not U.S. Customs and Border Protection
(Customs) would first collect then
reimburse the assessment, and how a
commodity promotion program board/
committee/council would be able to
identify and differentiate exempt from
non-exempt product. USDA has drafted
the regulations to align with current
Customs practices. Some agricultural
commodities have HTS codes assigned
to organically produced product and
some do not. As such, some products
may be imported under an HTS code
that applies the organic assessment
exemption directly as the product enters
the U.S. and could, therefore, bypass the
collection of assessments by Customs.
Other commodities may not have an
HTS code assigned to organically
produced product and the assessment
may have to be collected from, and then
subsequently reimbursed to, an exempt
importer. The procedures for such
reimbursements are addressed in each
of the research and promotion program
plans/orders/regulations.
Therefore, USDA does not believe that
the regulations, as proposed, should be
changed as a result of this comment.
However, the regulations contained
herein could be amended in the future
to reflect any operational changes from
Customs that would make the
application of the organic assessment
exemption more efficient regarding
imported product.
Several commenters expressed
concern that extending the organic
assessment exemption to split

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations
operations would lead to confusion as to
how the exemption will be applied
when it coincides with a program’s
minimum quantity provisions. They
believed that some entities may
inaccurately apply both exemption
provisions and result in an
underpayment or nonpayment of
assessments.
First, USDA would like to reiterate
that the commenters’ concerns may only
be directed to the provisions of the 22
research and promotion programs, as no
Federal marketing order contains a de
minimis provision in its definition of
‘‘handler’’. Next, the comments only
pertain to the 8 programs that have de
minimis amounts in their definition of
the entities that are subject to the
provisions of the order/plan/regulation
(7 CFR parts 1160, 1206, 1207, 1208,
1209, 1210, 1215, and 1221). Therefore,
with regards to the research and
promotion programs with de minimis
quantities, USDA would like to clarify
how the organic assessment exemption
will be applied under each of those
programs.
To be eligible for an organic
assessment exemption, an entity must
first be subject to assessment under an
order/plan/regulation. This means that
the total quantity of a program
commodity that an entity produces,
handles, markets, processes,
manufactures, feeds or imports is greater
than the de minimis amount specified
in the definition of entities subject to
the provisions of the order/plan/
regulation. In determining the total
quantity, USDA considers all organic,
conventional, and nonorganic product
in the aggregate, as the provisions of
each order/plan/regulation cover all of
the commodity produced, handled,
marketed, processed, manufactured, fed,
or imported, regardless of production
method employed in producing those
products.
If an entity is subject to assessment
after applying the de minimis amount
on a total volume basis, then the
quantity of organic product that the
entity produces, handles, markets,
processes, manufactures, feeds, or
imports may be considered for an
organic assessment exemption. Should
the entity be a split operation, the entity
would be obligated to pay assessments
on the portion of the entity’s product
that is conventional or nonorganic,
regardless of whether or not the quantity
of conventional or nonorganic product
is below the de minimis amount after
exempting the organic product. Once
the threshold for being subject to an
order/plan/regulation has been met on a
total product basis, the entity is subject
to the provisions of the program and

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must pay assessments on any
nonexempt product.
In summary, the determination of
whether or not an entity is subject to the
provisions of an order/plan/regulation
comes before any determination of
whether or not the entity may be exempt
from any of those provisions, including
assessment. Simply put, an entity
cannot be exempted from a provision
that it is not subject to. Further, the
approval of an assessment exemption
for some or all of an entity’s assessable
product under an order/plan/regulation
cannot be construed as a reduction in
the total quantity of product produced
or marketed by that entity. The quantity
of product on which an assessment
exemption is granted cannot be
deducted from the entity’s total quantity
and retroactively be applied to the de
minimis amount established under the
order/plan/regulation to determine
whether or not the entity is subject to
the provisions of that order/plan/
regulation.
For example, the de minimis quantity
for processors under the Popcorn
Promotion, Research, and Consumer
Information Order (7 CFR part 1215) is
4 million pounds annually. If a popcorn
processor processes 6 million pounds
annually, the processor is subject to the
provisions of the order and is required
to pay assessments on the 6 million
pounds. If 4 million pounds of the 6
million pounds total are certified
organic, the processor may request an
organic assessment exemption on those
4 million pounds. However, the
processor must pay the assessment on
the remaining 2 million pounds, even
though that quantity, by itself, would be
below the de minimis quantity in the
definition of a popcorn processor. The
application of the minimum quantity
provisions that determine what is
subject to an order/plan/regulation are
applied prior to the application of any
assessment exemption and are not
affected by the same after the fact.
Lastly, several commenters requested
a delay, up to 120 days, in the
implementation of the revised organic
assessment exemption provisions to
ensure that the expanded organic
exemption provisions are implemented
consistently and accurately throughout
all Federal marketing orders and
research and promotion program
boards/committees/councils. USDA has
reviewed the remittance and exemption
procedures of each commodity
promotion program and recognizes that
there are differences in the timelines
that each commodity promotion
program board/committee/council
follows. USDA recognizes that an
implementation date of 90 to 120 days

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82013

would be optimal. However, USDA also
recognizes the significance of the Farm
Bill revisions and has determined that
an implementation date of 60 days is
appropriate.
Organic Commodity Promotion Order
Section 10004 of the 2014 Farm Bill
includes a provision stating that the
organic assessment exemption is
effective until the date the Secretary
issues an organic commodity promotion
order under the Commodity Promotion,
Research, and Information Act of 1996
(7 U.S.C. 7411–7425). The promulgation
of an organic commodity promotion
order was also authorized under section
10004 of the 2014 Farm Bill.
The implementation of an organic
commodity promotion order would
follow the same process as other
commodity promotion orders overseen
by USDA; the industry submits a
proposal for an order that contains
analysis, justification, objectives, impact
on small businesses, evidence of
industry support, and the text of the
proposed order. USDA would then
review and publish the proposed order
in the Federal Register for public
comment. If, after reviewing the
comments, USDA concludes the order
has merit and meets legislative intent, a
referendum would be announced and
conducted. If the program was approved
by industry voters, a final rule would be
issued to implement the program.
In May 2015, USDA received an
industry proposal for an organic
commodity promotion order. USDA is
currently reviewing the proposal.
Marketing Order Programs
The FAIR Act organic exemption
amendment, as enacted by the 2014
Farm Bill, covers 23 marketing order
programs established under the AMAA
(Florida citrus—7 CFR part 905; Texas
citrus—7 CFR part 906; Florida
avocados—7 CFR part 915; Washington
apricots—7 CFR part 922; Washington
sweet cherries—7 CFR part 923;
Southeastern California grapes—7 CFR
part 925; Oregon/Washington pears—7
CFR part 927; Cranberries grown in the
States of Massachusetts, et al.—7 CFR
part 929; Tart cherries grown in the
States of Michigan, et al.—7 CFR part
930; California olives—7 CFR part 932;
Colorado potatoes—7 CFR part 948;
Georgia Vidalia onions—7 CFR part 955;
Washington/Oregon Walla Walla
onions—7 CFR part 956; Idaho-Eastern
Oregon onions—7 CFR part 958; Texas
onions—7 CFR part 959; Florida
tomatoes—7 CFR part 966; California
almonds—7 CFR part 981; OregonWashington hazelnuts—7 CFR part 982;
California walnuts—7 CFR part 984; Far

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West spearmint oil—7 CFR part 985;
California dates—7 CFR part 987;
California raisins—7 CFR part 989; and
California dried prunes—7 CFR part
993).
Federal marketing orders are locally
administered by committees made up of
producers and/or handlers, and often
members of the public. Marketing order
regulations, initiated by industry and
enforced by USDA, bind the entire
industry in the geographical area
regulated once they are approved by the
Secretary of Agriculture. Marketing
orders employ one or more of the
following authorities: (1) Maintain the
high quality of produce available to the
market; (2) standardize packages and
containers; (3) regulate the flow of
product to market; (4) establish reserve
pools for storable commodities; and (5)
authorize production research,
marketing research and development,
and advertising. Each unique marketing
order helps to promote orderly
marketing for the specific commodity
and region covered by the regulation.
The 23 specific marketing order
programs listed above allow for market
promotion activities designed to assist,
improve, or promote the marketing,
distribution, or consumption of the
commodity covered under each specific
marketing order. Some of these
programs also authorize market
promotion in the form of paid
advertising. Promotion activities,
including paid advertising, are paid for
by assessments levied on handlers
regulated under the various Federal
marketing orders.
Rules of practice and regulations
governing all Federal marketing orders
established under the AMAA are
contained in 7 CFR part 900 General
Regulations. Section 900.700 specifies
the criteria for identifying persons
eligible to obtain an assessment
exemption for marketing promotion
activities, including paid advertising;
procedures for persons to apply for an
exemption; procedures for calculating
the assessment exemption; and other
procedural details pertaining to the 23
marketing order programs that currently
engage in, or have the authority for,
marketing promotion, including paid
advertising.
Currently under those provisions,
only handlers that exclusively handle or
market products that are eligible to be
labeled ‘‘100 percent organic’’ are
exempt from the portion of a marketing
order assessment applicable to an
order’s marketing promotion activities,
including paid advertising. As such,
organic handlers who handle or market
any quantity of conventional or
nonorganic products in addition to their

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organic products are not currently able
to claim an assessment exemption on
any of the products they handle. The
2014 Farm Bill expanded the organic
exemption in the FAIR Act to allow all
organic handlers to apply for an
exemption from assessments on
products certified as ‘‘organic’’ or ‘‘100
percent organic,’’ regardless of whether
the handler also handles or markets
conventional or nonorganic products.
This final rule modifies the organic
assessment exemption eligibility criteria
contained in § 900.700. The
requirements contained in that section
will be revised to allow organic
operations that are split operations to
apply for and receive an assessment
exemption on their certified ‘‘organic’’
and ‘‘100 percent organic’’ products,
whereas such types of operations are
explicitly precluded from the organic
assessment exemption under the current
language. More specifically, the
eligibility provisions contained in
§ 900.700(b) will be modified to include
certified organic handlers that maintain
split operations. The section will also be
amended to provide that exempt
handlers must continue to pay
assessments associated with any
agricultural products that do not qualify
for an exemption under that section.
Handlers who wish to claim the
assessment exemption on their organic
products will continue to be required to
submit an application to the board or
committee, and subsequently be
approved, to qualify for the organic
exemption. However, as a result of the
revised eligibility requirements
contained herein, the specific
information that will be collected from
applicants will change. Some of the
information collection that is currently
necessary for the board or committee to
administer the organic assessment
exemption will no longer be required
moving forward (e.g. detail of all
commodities handled by the entity to
ensure it is a 100 percent organic
operation). As such, § 900.700(c) will be
modified to reflect these changes.
Research and Promotion Programs
The FAIR Act organic exemption
amendment contained in the 2014 Farm
Bill also covers 22 research and
promotion programs established under
either freestanding legislation (beef,
cotton, dairy, eggs, fluid milk, Hass
avocados, mushrooms, popcorn, pork,
potatoes, soybeans, and watermelons) or
the Commodity Promotion, Research,
and Information Act of 1996
(blueberries, Christmas trees, honey,
lamb, mangos, paper and paper-based
products, peanuts, processed

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raspberries, softwood lumber, and
sorghum).
Wholly funded and operated by
industry, the research and promotion
programs are charged with creating,
maintaining, and expanding markets for
the agricultural commodities they
represent. While these programs are
overseen by AMS, including the review
of all financial budgets, marketing
plans, and research projects, they are
governed by boards and councils made
up of industry participants. Producers,
handlers, processors, manufacturers,
feeders, importers, and/or others in the
marketing chain pay assessments to the
representative boards and councils to
fund each program’s activities.
Industries voluntarily request the
formation of these programs, which
allows them to establish, finance, and
execute coordinated programs of
research, producer and consumer
education, and generic commodity
promotion to improve, maintain, and
develop markets for their respective
commodities.
Under this final rule, the eligibility
criteria for obtaining an organic
assessment exemption, as contained in
each of the research and promotion
orders, plans, and/or regulations, will be
revised. The requirements for such an
exemption will be modified to allow
split organic operations to apply for and
receive an assessment exemption on
their certified ‘‘organic’’ and ‘‘100
percent organic’’ products, whereas
such types of operations are explicitly
precluded from the assessment
exemption under the current provisions
in each program. In addition, language
will be added to provide that exempt
producers, handlers, marketers,
processors, manufacturers, feeders, or
importers must continue to pay any
assessments associated with any
agricultural products that do not qualify
for an exemption.
Persons who wish to claim the
assessment exemption on their organic
products will continue to be required to
submit an application to the board or
council, and subsequently be approved,
to qualify for the organic exemption.
However, as a result of the revised
eligibility requirements contained
herein, the specific information that will
be collected from applicants will
change. Some of the information
collection that is currently necessary for
the board or council to administer the
organic assessment exemption will no
longer be required moving forward (e.g.
detail of all commodities produced,
handled, marketed, processed,
manufactured, fed, or imported by the
entity to ensure it is a 100 percent
organic operation). In addition, some

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new information will be required of
split operations to ensure compliance
under the expanded exemption (e.g.
declaration of split operation; estimated
amount of organic product that will be
produced, handled, marketed,
processed, manufactured, fed, or
imported by the split operation; and
estimated total quantity of product that
will be produced, handled, marketed,
processed, manufactured, fed, or
imported by the split operation). As
such, additional modifications will be
made to Form AMS–15, Organic
Exemption Request Form, to account for
split operations. However, no changes to
the section of each order, plan, and/or
regulation that specifies the information
collection requirements for the organic
assessment exemption will be made.
Who is eligible for exemption under a
marketing order?
This final rule will modify the
eligibility requirements for organic
assessment exemptions that are
currently in place for marketing order
programs. Under this action, persons
who are subject to an assessment under
a designated marketing order, who
maintain a valid organic certificate, and
who handle any assessable agricultural
commodities that are certified as
‘‘organic’’ or ‘‘100 percent organic’’ (as
defined in the NOP) will be eligible for
the organic assessment exemption under
amended requirements in part 900.
All of the 23 Federal marketing orders
impacted by this rule assess only
handlers (i.e., persons that handle the
regulated commodity) to fund the
operations of the respective programs.
Under the current organic assessment
exemption regulation, which was
promulgated as a result of the
provisions in the 2002 Farm Bill that
amended the FAIR Act, to qualify for an
exemption from a commodity
promotion assessment, a person—
meaning an individual, group of
individuals, corporation, association,
cooperative, or other business entity—
must ‘‘produce and market’’ solely 100
percent organic products, and must not
also produce or market any
conventional or nonorganic products.
For the purpose of that regulation,
‘‘produce’’ was defined as to grow or
produce food, feed, livestock, or fiber or
to receive food, feed, livestock, or fiber
and alter that product by means of
feeding, slaughtering, or processing.
USDA determined that handlers,
processors and producers acting as
handlers, and importers were also
eligible for exemption if any of their
activities met the definition of
‘‘produce’’ as outlined above.
Additionally, the regulation only

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provided for granting organic
assessment exemptions to persons that
handle domestic commodities regulated
under Federal marketing orders and not
importers, as importers regulated under
section 608e of the AMAA (7 U.S.C.
608e–1) (section 8e) do not pay
assessments. Therefore, importers are
not eligible for an organic assessment
exemption under part 900.
The 2002 Farm Bill amended the
FAIR Act to make organic assessment
exemptions available to any person that
‘‘produces and markets’’ organic
products, should they also conform to
certain other criteria. This rule will
incorporate the broadened eligibility
criteria established by the 2014 Farm
Bill amendment to the FAIR Act into the
regulations. Importers of commodities
covered by section 8e of the Agricultural
Marketing Agreement Act of 1937 will
remain ineligible for an exemption as
importers do not pay assessments under
marketing order programs.
In addition, the FAIR Act amendment
also expanded eligibility to cover split
organic operations. The requirement
that operations be ‘‘solely’’ 100 percent
organic was replaced with the
requirement that operations maintain a
‘‘valid organic certificate’’ issued under
the Organic Foods Production Act of
1990 (7 U.S.C. 6501–6522) (OFPA) and
the NOP. Handlers who handle certified
‘‘organic’’ and/or ‘‘100 percent organic’’
products will qualify for an organic
assessment exemption regardless of
whether the commodity subject to the
exemption is handled by a person that
also handles conventional or nonorganic
agricultural products of the same
commodity as that for which the
exemption is claimed.
Examples
For all examples, assume that the
person handles or markets a commodity
regulated under a marketing order, is
otherwise obligated to pay assessments
under that order, and that 60 percent of
the marketing order’s budgeted
expenses are attributed to market
promotion activities, including paid
advertising:
• A handler who handles all of their
volume as certified ‘‘organic’’ or ‘‘100
percent organic’’ product (received from
certified organic producers), and
maintains a valid organic certificate
under the NOP, will be eligible for an
organic assessment exemption. The
handler will be exempt from 100
percent of the portion of the marketing
order assessment attributed to marketing
promotion activities (60 percent). The
handler will be obligated to pay 40
percent of the assessment rate on 100
percent of the product handled. The

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assessment calculation will be: Quantity
handled × 40 percent of the assessment
rate.
• A handler who handles 20 percent
of their volume as certified ‘‘organic’’ or
‘‘100 percent organic’’ product (received
from certified organic producers) and
maintains a valid organic certificate
under the NOP will be eligible for an
organic assessment exemption. The
handler will be exempt from the portion
of the marketing order assessment
attributed to marketing promotion
activities (60 percent) on the quantity of
the products handled that are organic
(20 percent). Conversely, the handler
will be obligated to pay 40 percent of
the assessment rate on 20 percent of the
product handled and 100 percent of the
assessment rate on 80 percent of the
product handled. The assessment
calculation will be: (Quantity handled ×
20 percent × 40 percent of the
assessment rate) + (quantity handled ×
80 percent × assessment rate).
• A handler who handles 20 percent
of their volume as ‘‘organic’’ or ‘‘100
percent organic’’ received from certified
organic producers, but does NOT
maintain a valid organic certificate
under the NOP, will NOT be eligible for
any exemption of their marketing order
assessments as they do not have proper
certification. The handler will be
obligated to pay 100 percent of the
assessment associated with the quantity
of product handled.
• An importer who imports a
commodity that is subject to import
regulation under section 8e will NOT be
eligible for an exemption from
marketing order assessments as
importers are not obligated to pay
assessments under a marketing order or
the import regulations.
Who is eligible for exemption under a
research and promotion program?
Just as for Federal marketing orders,
this final rule will modify the eligibility
requirements for organic assessment
exemptions that are currently in place
for research and promotion programs.
Under this proposed action, persons
who are subject to an assessment under
a designated research and promotion
program, who maintain a valid organic
certificate, and who handle any
assessable agricultural commodities that
are certified as ‘‘organic’’ or ‘‘100
percent organic’’ (as defined in the
NOP) will be eligible for an organic
assessment exemption under amended
requirements contained in each of the
programs’ respective orders, plans, and/
or regulations. Persons who are
importing organic products in
compliance with a U.S. equivalency
arrangement established by AMS–NOP

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pursuant to OFPA and the NOP
regulations will also be eligible for an
organic assessment exemption.
For the 22 research and promotion
programs currently enacted, 16 assess
producers, 2 assess handlers, 2 assess
manufacturers, 2 assess processors, and
16 assess importers. Under the
provisions for each of the respective
programs, some also assess other
entities, in addition to the named
classes, including exporters, feeders,
and seed stock producers. Any of the
entities obligated to pay assessments
under one of the aforementioned
programs is eligible for an organic
assessment exemption.
Under the current regulation, organic
assessment exemptions are available to
any person who ‘‘produces or markets
solely 100 percent organic products’’
and conforms to certain requirements.
As mentioned previously, the recent
amendment to the FAIR Act expands
the organic assessment exemption
eligibility to any person that ‘‘produces,
handles, markets, or imports’’ organic
products under a ‘‘valid organic
certificate’’ issued under the OFPA and
the NOP. This final rule will remove the
‘‘solely 100 percent organic’’
requirement currently in the regulations
and allow split operations to request an
organic assessment exemption for all
products that qualify as certified
‘‘organic’’ and ‘‘100 percent organic.’’
Also, just as for Federal marketing
orders, ‘‘person’’ will continue to mean
any individual, group of individuals,
corporation, association, cooperative, or
other business entity engaged in any of
the aforementioned activities.
Examples
For all examples, assume that the
person produces, handles, processes, or
imports a commodity regulated under a
research and promotion program and is
otherwise obligated to pay assessments
under that order:
• A producer who maintains a valid
organic certificate under the NOP and
markets 100 percent of the products
they produce as certified ‘‘organic’’ or
‘‘100 percent organic’’ will be eligible
for an organic exemption on 100 percent
of the quantity produced.
• A handler who maintains a valid
organic certificate under the NOP and
handles 20 percent of the products they
handle as certified ‘‘organic’’ or ‘‘100
percent organic’’ products will be
eligible for an organic exemption on 20
percent of the total quantity they
handle. Conversely, the handler will
continue to be obligated to pay the full
assessment on the 80 percent of the total
quantity they handle that is not
‘‘organic’’ or ‘‘100 percent organic.’’ The

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assessment calculation will be: Quantity
produced × 80 percent × assessment
rate.
• A producer who has a split
operation (50 percent organic and 50
percent conventional or nonorganic)
with the combined total of production
above the de minimis amount and
maintains a valid organic certificate
under NOP for the 50 percent organic
product will be eligible for an
exemption on the organic portion, but
must pay on the 50 percent
conventional or nonorganic portion—
even though the remaining conventional
or nonorganic portion is below the de
minimis amount.
• A processor who processes 20
percent of their volume as ‘‘organic’’ or
‘‘100 percent organic’’ products received
from certified organic producers, but
does NOT maintain a valid organic
certificate under the NOP, will NOT be
eligible for any exemption of their
assessment obligation as they are NOT
a certified handling operation. The
processor will be obligated to pay 100
percent of the assessment associated
with the quantity of product they
processed and marketed.
• An importer who maintains a valid
organic certificate under the NOP and
markets the products that they import as
organic products, but the producers of
the products are NOT certified under
the NOP, will be eligible for an organic
assessment exemption if the product is
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ under a U.S. equivalency
arrangement established under the NOP.
Final Regulatory Flexibility Act
Analysis
In accordance with the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601–
612), AMS is required to examine the
impact of this final rule on small
entities. The purpose of the RFA is to
fit regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Accordingly, AMS has considered the
economic impact of this action on small
entities and has prepared this final
regulatory flexibility analysis.
Analysis of Marketing Order Programs
Marketing orders issued pursuant to
the AMAA, and the rules issued
thereunder, are unique in that they are
brought about through group action of
essentially small entities acting on their
own behalf.
Assessments under marketing order
programs are paid by the handlers
regulated under each of the Federal
marketing orders. There are
approximately 950 handlers regulated

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under the 23 Federal marketing orders
with market promotion authority (there
are 28 marketing orders total—5 do not
have authority for market promotion
activities). Currently, only 10 entities
handle or market solely 100 percent
organic products and claim exemptions
from paying assessments for market
promotion activities, including paid
advertising, under the assessment
exemption regulations contained in
§ 900.700. USDA believes that as many
as 20 percent of the entities handling
agricultural products under the various
marketing orders (approximately 190
firms) may handle some quantity of
organic products, but do not qualify for
an assessment exemption under the
current regulations.
Small agricultural service firms are
defined by the Small Business
Administration (SBA) as those having
annual receipts of less than $7,000,000,
and small agricultural producers are
defined as those having annual receipts
of less than $750,000 (13 CFR 121.201).
All of the entities currently approved for
an organic assessment exemption under
the marketing order programs would be
classified by SBA as small agricultural
service firms. In addition, although the
exact number of potential applicants is
unknown, USDA believes that many of
the entities that will become eligible for
an organic assessment exemption as a
result of this action may also be
classified as small firms under the SBA
classification.
As previously mentioned, Section 501
of the FAIR Act was amended by the
2002 Farm Bill to exempt persons that
produced and marketed solely 100
percent organic products, and were not
split operations, from the payment of an
assessment for commodity promotion
activities under a commodity promotion
law. The amendment required the
Secretary to promulgate regulations
with regard to the eligibility and
compliance of such organic assessment
exemptions. AMS subsequently added
§ 900.700 to the General Regulations (7
CFR part 900) governing Federal
marketing orders to establish the criteria
and procedure for obtaining an organic
assessment exemption.
On February 7, 2014, the FAIR Act
was again amended by the 2014 Farm
Bill to broaden the eligibility criteria for
receiving an organic assessment
exemption under a commodity
promotion program. Specifically, the
2014 Farm Bill amendment to the FAIR
Act exempts persons that produce,
handle, market, or import products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ from payment of assessments
under a commodity promotion program.
The exemption applies regardless of

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations
whether a producer, handler, marketer,
or importer also produces, handles,
markets, or imports conventional or
nonorganic products. The statute further
requires the Secretary to promulgate
regulations under each of the
commodity promotion programs to
implement the amendment.
As required, USDA is amending the
general regulations that will affect 23 of
the 28 Federal marketing orders that
have authority for market promotion,
including paid advertising. These
amendments modify the current
provisions and broaden the eligibility
for organic handling operations to
become exempt from paying
assessments on the certified ‘‘organic’’
and ‘‘100 percent organic’’ products that
they handle, regardless of whether the
handler is a split operation.
The 23 marketing order programs
affected by this final rule allow for
promotion activities designed to assist,
improve, and promote the marketing,
distribution, or consumption of the
commodities covered under the
marketing orders. Some of the orders
also include authority for paid
advertising. Expenses necessary to
administer the programs are paid for by
assessments levied on handlers
regulated under the various marketing
orders. Market promotion activities,
including paid advertising, are only one
component of each marketing order’s
regulatory scheme. The assessment
exemption for organic products only
applies to the portion of a marketing
order assessment that is associated with
market promotion activities, including
paid advertising. All handlers subject to
regulation under a marketing order are
obligated to pay the portion of the
assessment that is not directly related to
market promotion, including paid
advertising. This includes handlers who
are granted an organic assessment
exemption.
Under this final rule, § 900.700 is
amended to broaden the criteria for
persons eligible to obtain an assessment
exemption for marketing promotion,
including paid advertising; streamline
the procedure for applying for an
exemption; modify the procedure for
calculating the assessment exemption;
and revise other procedural details
necessary to effectuate the 2014 Farm
Bill amendment. These changes will
allow more handlers to qualify for an
organic assessment exemption than are
presently eligible under the current
regulations.
Regarding the impact on affected
entities under a marketing order, this
final rule will impose minimal incurred
costs in filing the exemption application
and in maintaining records needed to

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verify the applicant’s exemption status
during the period that the entity is
exempt. Under the revised regulations,
applicants will still be required to
submit an application for exemption on
Form FV–649 and receive approval from
the applicable board or committee to
obtain the assessment exemption.
However, the eligibility criteria has been
broadened and the amount of
documentation required of an applicant
has been reduced, thus reducing the
burden on entities who wish to
participate. Applicants will continue to
submit one application annually. The
annual burden associated with requests
for organic assessment exemptions for
all of the marketing order industries is
estimated to total 47.5 hours (190
applicants × 15 minutes) (see the
Paperwork Reduction Act section below
for greater explanation of the
information collection and
recordkeeping burden).
The total estimated cost burden
associated with the information
collection is estimated to be $712, or
$3.75 per applicant. The total cost was
estimated by multiplying the expected
burden hours associated with the
organic exemption application (47.5
hours) by $15.00 per hour, a sum
deemed reasonable should an applicant
be compensated for their time.
During the 2012–2013 marketing
season, assessments for all Federal
marketing orders totaled approximately
$89,700,000. Of that amount, about
$58,300,000 (or 65 percent) was made
available for marketing promotion
activities, including paid advertising.
While there is not enough information
to generate a reasonable estimate, USDA
believes about two percent, on average,
of the total assessments are for
commodities that are certified organic.
Thus, assessments on organic
commodities might have totaled as
much as $1,794,000 (2 percent of
$89,700,000). That total might be
reduced moving forward by $1,166,000
(65 percent of $1,794,000—the portion
of the assessments made available for
marketing activities) if all of the
approximately 190 handlers that USDA
believes may be eligible were to apply
to the respective board or committee
and be approved for an organic
assessment exemption under the revised
regulations.
There are approximately 10 handlers
that are approved for organic assessment
exemptions under the current
regulation, with a total exempted
amount of approximately $135,000. The
current exemption averages
approximately $13,500 per handler.
Based on the estimate that 190 handlers
might be exempt from assessments

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82017

under the proposed criteria, and an
estimated $1,166,000 of potential
exemptions, USDA estimates that
exempted organic handlers may average
$6,136 in decreased assessments. This
amount is less than half of the current
average. However, the revised eligibility
requirements are expected to attract
more handlers than under the current
regulations. Many of those handlers may
be small entities or may only handle a
small percentage of organic products
relative to the total amount of product
handled.
There is some variation among the 23
marketing orders on the percent of
assessments used for market promotion
activities, including paid advertising.
Thus, the actual reduction in
assessments will differ among the
various marketing orders. In fact, the
amounts allocated for marketing
promotion activities as a percentage of
the total marketing order budgets range
from less than 5 percent to almost 95
percent. As such, the financial impact of
this rule to each handler individually,
and to each of the 23 distinct marketing
order programs collectively, cannot be
accurately estimated. However, several
of the affected marketing order programs
do expect to see large reductions in
assessment revenue moving forward.
The Oregon-Washington Fresh Pear
Committee anticipates a $362,718
reduction in assessments
(approximately 3.8 percent of total
assessments), the California Almond
Board expects a reduction of $298,000
(approximately 0.5 percent), and the
California Raisin Administrative
Committee expects a reduction of
$180,000 (approximately 3.5 percent) as
a result of the expanded eligibility for
organic assessment exemptions. These
boards and committees will have to
adjust programs and reduce budgeted
expenses accordingly.
Since this action has the potential to
exempt agricultural handling entities
from assessments, AMS believes that
this rule will have a net beneficial
economic impact on exempted firms.
The additional burden associated with
the additional information collection
will be more than offset by reduced
assessment obligations. The benefits for
this final rule are not expected to be
disproportionately greater or less for
smaller entities than for larger entities
regulated under any of the 23 marketing
order programs.
Analysis of Research and Promotion
Programs
Research and promotion programs
established under the various
commodity promotion acts, and the
rules and regulations issued thereunder,

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are like marketing orders in that they are
uniquely brought about through group
action of essentially small entities acting
on their own behalf.
Producers, handlers, processors,
manufacturers, importers, exporters,
feeders, and seed stock producers pay
assessments to the national boards and
councils that administer the various
commodity research and promotion
programs, or in some cases to other
parties designated by a board or council
to collect assessments. The number of
entities paying assessments under each
of the research and promotion programs
varies considerably. For example, the
mango program receives assessments
from approximately 198 handlers and
importers, while the beef program
receives assessments from nearly 1
million producers and 125 importers.
As mentioned previously, small
agricultural service firms are defined by
the SBA as those having annual receipts
of less than $7,000,000, and small
agricultural producers are defined as
those having annual receipts of less than
$750,000. Many of the handlers,
importers, manufacturers, exporters,
feeders, and seed stock producers
currently approved for organic
assessment exemptions under the
research and promotion programs
would be classified by SBA as small
agricultural service firms. In addition,
most of the producers currently
approved for exemptions would also be
classified as small agricultural
producers. The exact number and size of
the potential applicants that will be
eligible for an assessment exemption as
a result of this action is not known. The
current and estimated number of
respondents filing exemption claims
appears later in this discussion;
however, USDA believes that many of
the entities that will become eligible for
an organic assessment exemption under
the regulation changes contained herein
may also be classified as small firms
and/or small producers under the SBA
classification.
This final rule was initiated as a result
of amendments to the FAIR Act
contained in the 2014 Farm Bill. This

rule modifies the organic assessment
exemption regulations established
under each of the 22 research and
promotion programs to revise the
eligibility criteria for obtaining an
organic assessment exemption. As
revised, the regulations provide that
entities that produce, handle, market,
process, manufacture, feed, or import
organic products may be exempt from
the payment of an assessment under a
commodity promotion law with respect
to any agricultural commodity that is
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP. The exemption
will apply to the certified ‘‘organic’’ or
‘‘100 percent organic’’ products
regardless of whether the agricultural
commodity subject to the exemption is
produced, handled, marketed,
processed, manufactured, fed, or
imported by a person that also
produces, handles, markets, processes,
manufactures, feeds, or imports
conventional agricultural products. This
is a change from the previous
regulations, which only allowed organic
assessment exemptions for organic
operations that produced and marketed
solely products that were ‘‘100 percent
organic’’ as defined under the OFPA
and were not split operations.
Under the previous regulations,
eligible producers, handlers, marketers,
processors, manufacturers, exporters,
feeders, and importers that wished to be
exempted from assessment on their
certified organic products must have
first submitted a request for exemption
to the appropriate board or council on
Form AMS–15. This provision does not
change as a result of this final rule.
However, this action does change the
information collection requirements for
requesting an organic assessment
exemption to reflect the revised
eligibility criteria and will necessitate
modifying Form AMS–15 to reflect the
changes established by this rule. The
modified form will continue to be
required under the revised regulations
to assist the board or council in the
effective administration of the
exemption and to ensure compliance
with the exemption requirements.

In preparing this final regulatory
flexibility analysis, AMS has attempted
to identify the entities that will be
affected by this final rule and examine
the potential impact on such entities.
AMS has determined that this action
will have little negative impact on
entities subject to research and
promotion programs. Further, the
changes will only impose minimal costs
incurred in the filing of the exemption
request and in maintaining records
needed to verify the applicant’s
exemption status during the period that
the entity is exempt. Under the revised
regulations, the required information
collection burden will be about the
same for entities who wish to initiate or
perpetuate an organic assessment
exemption. Applicants will continue to
be required to submit one application
annually.
All of the entities paying assessments
to the research and promotion programs
are eligible to take advantage of the rule
changes contained herein, provided the
parties elect to apply and otherwise
comply with the exemption
requirements as specified under each of
the individual orders.
Approximately 1,493 entities are
currently approved for organic
assessment exemptions under the 22
research and promotion programs.
Organic assessment exemptions for the
past year were approximately
$1,400,000 for all of the programs in
aggregate. In 2013, it is estimated that
the dairy promotion and research
program had the largest number of
exemptions, with 1,150 producers
exempt, and the highest dollar amount,
with nearly 1 million dollars of
assessment exemptions. Participation in
the other programs varied. Ten of the 22
research and promotion programs
currently do not have any entities
approved for organic assessment
exemptions.
The estimated number of respondents
filing exemption claims with the boards
or councils after implementation of the
changes to the regulations is anticipated
as follows:

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Current
Beef ..............................................................................................................................................................
Blueberries ...................................................................................................................................................
Christmas trees ............................................................................................................................................
Cotton ..........................................................................................................................................................
Dairy .............................................................................................................................................................
Eggs .............................................................................................................................................................
Fluid milk ......................................................................................................................................................
Hass avocados ............................................................................................................................................
Honey ...........................................................................................................................................................
Lamb ............................................................................................................................................................
Mangos ........................................................................................................................................................
Mushrooms ..................................................................................................................................................

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E:\FR\FM\31DER3.SGM

Estimated
30
8
0
0
1,150
0
0
230
2
3
3
7

31DER3

2,966
204
0
no estimate
1,823
20
11
771
327
7
75
246

Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

tkelley on DSK3SPTVN1PROD with RULES3

Current

82019

Estimated

Paper and Paper-based Packaging ............................................................................................................
Peanuts ........................................................................................................................................................
Popcorn ........................................................................................................................................................
Pork ..............................................................................................................................................................
Potatoes .......................................................................................................................................................
Raspberries ..................................................................................................................................................
Softwood lumber ..........................................................................................................................................
Sorghum ......................................................................................................................................................
Soybeans .....................................................................................................................................................
Watermelons ................................................................................................................................................

0
0
0
5
6
0
0
10
39
0

0
85
170
18
904
232
0
10
1,930
412

Totals ....................................................................................................................................................

1,493

10,211

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

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thereby making the exemption available
to more entities. The revised eligibility
criteria are expected to increase the total
number of participants as well as the
total amount of organic assessment
exemptions under each of the programs.
The estimated total in organic
assessment exemption amounts
expected to result from revising the
eligibility requirements are as follows:
Beef ......................................
Blueberries ............................
Christmas trees ....................
Cotton ...................................
Dairy .....................................
Eggs ......................................
Fluid milk ..............................
Hass avocados .....................
Honey ...................................
Lamb .....................................
Mangos .................................
Mushrooms ...........................
Paper and Paper-based
packaging ..........................
Peanuts .................................
Popcorn ................................
Pork ......................................
Potatoes ................................
Raspberries ..........................
Softwood lumber ...................
Sorghum ...............................
Soybeans ..............................
Watermelons .........................
Total ...............................

listed above may have to adjust
programs or reduce budgeted expenses
in response to organic assessment
exemptions.
Since this action has the potential to
exempt agricultural production,
handling, and marketing entities from
assessments, this rule will have an
additional burden associated with the
additional information collection,
which will be more than offset by
$2,400,000
no estimate reduced assessment obligations. The
0 benefits for this action are not expected
no estimate to be disproportionately greater or less
4,190,000 for small producers, handlers, or
742,500 marketers than for larger entities
4,530,000 regulated under any of the 22 research
850,000 and promotion programs.
no estimate
114,000
no estimate
132,655

no
no
no

no

0
6,517
estimate
111,000
estimate
estimate
0
122,500
427,800
estimate

$13,626,972

There are no estimated assessment
exemption amounts for the Christmas
tree, paper and paper-based-packaging,
or softwood lumber programs given the
nature of these industries. Some boards
and councils were able to estimate the
number of organic production and
marketing operations within their
industries; however, based upon current
data, there is not enough information to
generate a reasonable estimate of the
potential dollar amount of organic
assessment exemptions reported as ‘‘no
estimate.’’ The boards and councils that
reported ‘‘no estimate’’ generally
represent programs that estimated small
percentages of participation amongst
their industries. As a result of this
action, some of the boards and councils

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Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection
requirements have been previously
approved by the Office of Management
and Budget (OMB) under 23 Federal
marketing order programs (7 CFR parts
905, 906, 915, 922, 923, 925, 927, 929,
930, 932, 948, 955, 956, 958, 959, 966,
981, 982, 984, 985, 987, 989, and 993)
and 22 research and promotion
programs (7 CFR parts 1150, 1160, 1205,
1206, 1207, 1208, 1209, 1210, 1212,
1214, 1215, 1216, 1217, 1218, 1219,
1220, 1221, 1222, 1230, 1250, 1260, and
1280). Upon publication of this final
rule, AMS will submit a Justification for
Change to OMB for the AMS–15
Exemption Application Form for
Research and Promotion Programs,
OMB No. 0581–0093 National Research,
Promotion and Consumer Information
Programs. AMS will also submit a
Justification for Change to OMB for the
FV–649 Exemption Application Form
for Marketing Orders, OMB No. 0581–
0216 Fruit and Vegetable Marketing
Orders Certified Organic Handler
Marketing Promotion Assessment
Exemption under 23 Federal Marketing
Orders. The Justification for Change will
request approval for an increase in

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

number of respondents and an increase
in burden hours for these two forms.
After consideration of all relevant
material presented, including
information submitted by the
commenters and other information, it is
hereby found that this rule, as
hereinafter set forth, is consistent with
and will effectuate the declared policy
of the previously referenced commodity
promotion laws, the 2014 Farm Bill, and
the FAIR Act.
List of Subjects
7 CFR Part 900

7 CFR Part 1150
Dairy products, Reporting and
recordkeeping requirements, Research.
7 CFR Part 1160
Milk, Reporting and recordkeeping
requirements.
Advertising, Agricultural research,
Cotton, Marketing agreements,
Reporting and recordkeeping
requirements.
Administrative practice and
procedure, Advertising, Consumer
information, Agricultural research,
Mango, Marketing agreements,
Reporting and recordkeeping
requirements.
7 CFR Part 1207
Advertising, Agricultural Research,
Potatoes, Reporting and recordkeeping
requirements.
7 CFR Part 1208
Administrative practice and
procedure, Advertising, Agricultural
research, Marketing agreements,
Raspberries, Reporting and
recordkeeping requirements.
Administrative practice and
procedure, Advertising, Agricultural
research, Mushrooms, Reporting and
recordkeeping requirements.

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7 CFR Part 1210
Administrative practice and
procedure, Advertising, Agricultural
research, Reporting and recordkeeping
requirements, Watermelons.

Jkt 238001

7 CFR Part 1215
Administrative practice and
procedures, Advertising, Agricultural
research, Popcorn, Reporting and
recordkeeping requirements.

7 CFR Part 1217
Administrative practice and
procedure, Advertising, Marketing
agreements, Reporting and
recordkeeping requirements, Softwood
lumber.

7 CFR Part 1220
Administrative practice and
procedure, Advertising, Agricultural
research, Reporting and recordkeeping
requirements, Soybeans.
7 CFR Part 1221
Administrative practice and
procedure, Advertising, Agricultural
research, Consumer information,
Marketing agreements, Reporting and
recordkeeping requirements, Sorghum.
7 CFR Part 1222
Administrative practice and
procedure, Advertising, Labeling,
Marketing agreements, Reporting and
recordkeeping requirements.

7 CFR Part 1209

18:23 Dec 30, 2015

7 CFR Part 1260
Administrative practice and
procedure, Advertising, Agricultural
research, Imports, Meat and meat
products, Reporting and recordkeeping
requirements.

7 CFR Part 1219
Administrative practice and
procedure, Advertising, Agricultural
research, Avocados, Reporting and
recordkeeping requirements.

7 CFR Part 1206

VerDate Sep<11>2014

7 CFR Part 1214
Administrative practice and
procedure, Advertising, Christmas trees,
Marketing agreements, Reporting and
recordkeeping requirements.

7 CFR Part 1218
Administrative practice and
procedure, Advertising, Agricultural
Research, Blueberries, Reporting and
recordkeeping requirements.

7 CFR Part 1205

Administrative practice and
procedure, Advertising, Agricultural

Reporting and recordkeeping
requirements.

7 CFR Part 1216
Administrative practice and
procedure, Advertising, Agricultural
research, Peanuts, Reporting and
recordkeeping requirements.

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

7 CFR Part 1212

research, Reporting and recordkeeping
requirements.

7 CFR Part 1230
Administrative practice and
procedure, Advertising, Agricultural
research, Meat and meat products,
Reporting and recordkeeping
requirements.
7 CFR Part 1250
Administrative practice and
procedure, Advertising, Agricultural
research, Eggs and egg products,

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7 CFR Part 1280
Administrative practice and
procedure, Advertising, Agricultural
research, Meat and meat products,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR parts 900, 1150, 1160,
1205, 1206, 1207, 1208, 1209, 1210,
1212, 1214, 1215, 1216, 1217, 1218,
1219, 1220, 1221, 1222, 1230, 1250,
1260, and 1280 are amended as follows:
PART 900—GENERAL REGULATIONS
1. The authority citation for 7 CFR
part 900 continues to read as follows:

■

Authority: 7 U.S.C. 601–674 and 7 U.S.C.
7401.
■

2. Revise § 900.700 to read as follows:

§ 900.700

Exemption from assessments.

(a) This section specifies criteria for
identifying persons eligible to obtain an
exemption from the portion of the
assessment used to fund marketing
promotion activities under a marketing
order and the procedures for applying
for such an exemption under 7 CFR
parts 905, 906, 915, 922, 923, 925, 927,
929, 930, 932, 948, 955, 956, 958, 959,
966, 981, 982, 984, 985, 987, 989, 993,
and such other parts (included in 7 CFR
parts 905 through 998) covering
marketing orders for fruits, vegetables,
and specialty crops as may be
established or amended to include
market promotion. For the purposes of
this section, the term ‘‘assessment
period’’ means fiscal period, fiscal year,
crop year, or marketing year as defined
under these parts; the term ‘‘marketing
promotion’’ means marketing research
and development projects or marketing
promotion, including paid advertising
designed to assist, improve, or promote
the marketing, distribution, or
consumption of the applicable
commodity.
(b) A handler who operates under an
approved National Organic Program (7
CFR part 205) (NOP) organic handling
system plan and is subject to
assessments under a part or parts
specified in paragraph (a) of this section
may be exempt from the portion of the
assessment applicable to marketing
promotion, including paid advertising,
provided that:

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations
(1) Only agricultural commodities
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a handler regardless of
whether the agricultural commodity
subject to the exemption is handled by
a person that also handles conventional
or nonorganic agricultural products of
the same agricultural commodity as that
for which the exemption is claimed;
(3) The handler maintains a valid
certificate of organic operation as issued
under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522)(OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205);
(4) Any handler so exempted shall
continue to be obligated to pay
assessments under such part or parts
specified that are associated with any
agricultural products that do not qualify
for an exemption under this section; and
(5) For exempted products, any
handler so exempted shall be obligated
to pay the portion of the assessment
associated with the other authorized
activities under such part or parts other
than marketing promotion, including
paid advertising.
(c) Assessment exemption
application. (1) To be exempt from
paying assessments for these purposes
under a part or parts listed in paragraph
(a) of this section, the handler shall
submit an application to the board or
committee established under the
applicable part or parts prior to or
during the assessment period. This
application, Form FV–649, ‘‘Certified
Organic Handler Application for
Exemption from Market Promotion
Assessments Paid Under Federal
Marketing Orders,’’ shall include:
(i) The date, applicable committee or
board, and Federal marketing order
number;
(ii) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(iii) Certification that the applicant
maintains a valid certificate of organic
operation under the OFPA and the NOP;
(iv) Certification that the applicant
handles or markets organic products
eligible to be labeled ‘‘organic’’ or ‘‘100
percent organic’’ under the NOP;
(v) Certification that the applicant is
otherwise subject to assessments under
the Federal marketing order program for
which the exemption is requested;
(vi) The number of organic certified
producers for whom they handle or
market product (including the
applicant);

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(vii) A requirement that the applicant
attach a copy of their certificate of
organic operation and all applicable
producer certificates of organic
operation issued by a USDA-accredited
certifying agent under the OFPA and the
NOP;
(viii) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(ix) Such other information as the
committee or board may require, with
the approval of the Secretary.
(2) The handler shall file the
application with the committee or
board, prior to or during the applicable
assessment period, and annually
thereafter, as long as the handler
continues to be eligible for the
exemption. If the person complies with
the requirements of this section and is
eligible for an assessment exemption,
the committee or board will approve the
exemption request and provide written
notification of such to the applicant
within 30 days. If the application is
disapproved, the committee or board
will provide written notification of the
reason(s) for such disapproval within
the same timeframe.
(3) The exemption will apply at the
beginning of the next assessable period
following notification of approval of the
assessment exemption, in writing, by
the committee or board.
(d) Assessment exemption
calculation. (1) The applicable
assessment rate for any handler
approved for an exemption shall be
computed by dividing the committee’s
or board’s estimated non-marketing
promotion expenditures by the
committee’s or board’s estimated total
expenditures approved by the Secretary
and applying that percentage to the
assessment rate applicable to all persons
for the assessment period. The modified
assessment rate shall then be applied to
the quantity of certified ‘‘organic’’ or
‘‘100 percent organic’’ products handled
under an approved organic assessment
exemption as provided in paragraph
(c)(2) of this section. Products handled
not subject to an approved organic
assessment exemption shall be assessed
at the assessment rate applicable to all
persons for the assessment period. The
committee’s or board’s estimated nonmarketing promotion expenditures shall
exclude the direct costs of marketing
promotion and the portion of
committee’s or board’s administrative
and overhead costs (e.g., salaries,
supplies, printing, equipment, rent,
contractual expenses, and other
applicable costs) to support and
administer the marketing promotion
activities.

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82021

(2) If a committee or board does not
plan to conduct any market promotion
activities in a fiscal year, the committee
or board may submit a certification to
that effect to the Secretary, and as long
as no assessments for such fiscal year
are used for marketing promotion
projects, or the administration of
projects are funded by a previous fiscal
period’s assessments, the committee or
board may assess all handlers,
regardless of their organic status, the
full assessment rate applicable to the
assessment period.
(3) For each assessment period, the
Secretary shall review the portion of the
assessment rate applicable to marketing
promotion for persons eligible for an
exemption and, if appropriate, approve
the assessment rate.
(4) When the requirements of this
section for exemption no longer apply to
a handler, the handler shall inform the
committee or board within 30 days and
pay the full assessment on all remaining
assessable product for all committee or
board assessments from the date the
handler no longer is eligible to the end
of the assessment period.
(5) Within 30 days following the
applicable assessment period, the
committee or board shall re-compute the
applicable assessment rate for handlers
exempt under this section based on the
actual expenditures incurred during the
applicable assessment period. The
Secretary shall review, and if
appropriate, approve any change in the
portion of the assessment rate for market
promotion applicable to exempt
handlers, and authorize adjustments for
any overpayments or collection of
underpayments.
PART 1150—DAIRY PROMOTION
PROGRAM
3. The authority citation for 7 CFR
part 1150 continues to read as follows:

■

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

4. In § 1150.157, remove paragraph (i),
redesignate paragraph (j) as paragraph
(i), and revise paragraphs (a), (b), (c), (d),
(e), (g), and newly redesignated
paragraph (i) to read as follows:

■

§ 1150.157

Assessment exemption.

(a) A producer described in
§ 1150.152(a)(1) and (2) who operates
under an approved National Organic
Program (7 CFR part 205) (NOP) organic
production system plan may be exempt
from the payment of assessments under
this part, provided that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of the producer regardless of
whether the agricultural commodity
subject to the exemption is produced by
a person that also produces
conventional or nonorganic agricultural
products of the same agricultural
commodity as that for which the
exemption is claimed;
(3) The producer maintains a valid
certificate of organic operation as issued
under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522) (OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205); and
(4) Any producer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
(b) To apply for exemption under this
section, a producer subject to
assessments pursuant to § 1150.152(a)(1)
and (2) shall submit a request to the
Board on an Organic Exemption Request
Form (Form AMS–15) at any time
during the year initially, and annually
thereafter on or before July 1, for as long
as the producer continues to be eligible
for the exemption.
(c) A producer request for exemption
shall include the following:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid organic certificate
issued under the OFPA and the NOP;
(3) Certification that the applicant
produces organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a producer complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
(e) A producer approved for
exemption under this section shall
provide a copy of the Certificate of
Exemption to each person responsible

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18:23 Dec 30, 2015

Jkt 238001

for remitting assessments to the Board
on behalf of the producer pursuant to
§ 1150.152(a).
*
*
*
*
*
(g) An importer who imports products
that are eligible to be labeled as
‘‘organic’’ or ‘‘100 percent organic’’
under the NOP, or certified as ‘‘organic’’
or ‘‘100 percent organic’’ under a U.S.
equivalency arrangement established
under the NOP, may be exempt from the
payment of assessments on those
products. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ dairy products on an Organic
Exemption Request Form (Form AMS–
15) at any time initially, and annually
thereafter on or before July 1, as long as
the importer continues to be eligible for
the exemption. This documentation
shall include the same information
required of producers in paragraph (c) of
this section. If the importer complies
with the requirements of this section,
the Board will grant the exemption and
issue a Certificate of Exemption to the
importer. The Board will also issue the
importer an alphanumeric number valid
for 1 year from the date of issue. This
alphanumeric number should be
entered by the importer on the CBP
entry documentation. Any line item
entry of ’’organic’’ or ‘‘100 percent
organic’’ dairy products bearing this
alphanumeric number assigned by the
Board will not be subject to
assessments. Any importer so exempted
shall continue to be obligated to pay
assessments under this part that are
associated with any imported
agricultural products that do not qualify
for an exemption under this section.
*
*
*
*
*
(i) An importer who is exempt from
payment of assessments under
paragraph (g) of this section shall be
eligible for reimbursement of
assessments collected by the CBP on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ dairy products and may apply
to the Secretary for a reimbursement.
The importer would be required to
submit satisfactory proof to the
Secretary that the importer paid the
assessment on exempt organic products.
PART 1160—FLUID MILK PROMOTION
PROGRAM
5. The authority citation for 7 CFR
part 1160 continues to read as follows:

■

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

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

■

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§ 1160.215

Assessment exemption.

*

*
*
*
*
(b) A fluid milk processor described
in § 1160.211(a) who operates under an
approved National Organic Program (7
CFR part 205) (NOP) organic handling
system plan may be exempt from the
payment of assessments under this part,
provided that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a fluid milk processor
regardless of whether the agricultural
commodity subject to the exemption is
processed by a person that also
processes conventional or nonorganic
agricultural products of the same
agricultural commodity as that for
which the exemption is claimed;
(3) The fluid milk processor maintains
a valid certificate of organic operation as
issued under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501–
6522)(OFPA) and the NOP regulations
issued under OFPA (7 CFR part 205);
and
(4) Any fluid milk processor so
exempted shall continue to be obligated
to pay assessments under this part that
are associated with any agricultural
products that do not qualify for an
exemption under this section.
(c) To apply for an assessment
exemption, a fluid milk processor
described in § 1160.211(a) shall submit
a request to the Board on an Organic
Exemption Request Form (Form AMS–
15) at any time during the year initially,
and annually thereafter on or before July
1, for as long as the processor continues
to be eligible for the exemption.
(d) A fluid milk processor request for
exemption shall include the following
information:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid organic certificate
issued under the OFPA and the NOP;
(3) Certification that the applicant
processes organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(e) If a fluid milk processor complies
with the requirements of this section,
the Board will grant an assessment
exemption and issue a Certificate of
Exemption to the processor within 30
days. If the application is disapproved,
the Board will notify the applicant of
the reason(s) for disapproval within the
same timeframe.
*
*
*
*
*
PART 1205—COTTON RESEARCH
AND PROMOTION
7. The authority citation for 7 CFR
part 1205 continues to read as follows:

■

Authority: 7 U.S.C. 2101–2118.

8. In § 1205.519, revise paragraphs (a),
(b), (c), (d), (e), (f), and (h) to read as
follows:

■

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§ 1205.519

Organic exemption.

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

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(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(3) Certification that the applicant
produces and/or imports organic
products eligible to be labeled ‘‘organic’’
or ‘‘100 percent organic’’ under the
NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a producer complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
(e) A producer approved for
exemption under this section shall
provide a copy of the Certificate of
Exemption to each handler to whom the
producer sells cotton. The handler shall
maintain records showing the exempt
producer’s name and address and the
exemption number assigned by the
Board.
(f) An importer who imports products
that are eligible to be labeled as
‘‘organic’’ or ‘‘100 percent organic’’
under the NOP, or certified as ‘‘organic’’
or ‘‘100 percent organic’’ under a U.S.
equivalency arrangement established
under the NOP, may be exempt from the
payment of assessments on those
products. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ cotton and cotton products on
an Organic Exemption Request Form
(Form AMS–15) at any time initially,
and annually thereafter, as long as the
importer continues to be eligible for the
exemption. This documentation shall
include the same information required
of producers in paragraph (c) of this
section. If the importer complies with
the requirements of this section, the
Board will grant the exemption and
issue a Certificate of Exemption to the
importer. The Board will also issue the
importer an alphanumeric number valid
for 1 year from the date of issue. This
alphanumeric number should be

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82023

entered by the importer on the Customs
entry documentation. Any line item
entry of ‘‘organic’’ or ‘‘100 percent
organic’’ cotton and cotton products
bearing this alphanumeric number
assigned by the Board will not be
subject to assessments. Any importer so
exempted shall continue to be obligated
to pay assessments under this part that
are associated with any imported
agricultural products that do not qualify
for an exemption under this section.
*
*
*
*
*
(h) An importer who is exempt from
payment of assessments under
paragraph (f) of this section shall be
eligible for reimbursement of
assessments collected by Customs on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ cotton and cotton products and
may apply to the Secretary for a
reimbursement. The importer would be
required to submit satisfactory proof to
the Secretary that the importer paid the
assessment on exempt organic products.
PART 1206—MANGO PROMOTION,
RESEARCH, AND INFORMATION
9. The authority citation for 7 CFR
part 1206 continues to read as follows:

■

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

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

■

§ 1206.202

Exemption for organic mangos.

(a) A first handler who operates under
an approved National Organic Program
(7 CFR part 205) (NOP) organic handling
system plan may be exempt from the
payment of assessments under this part,
provided that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products handled by the first handler
regardless of whether the agricultural
commodity subject to the exemption is
handled by a person that also handles
conventional or nonorganic agricultural
products of the same agricultural
commodity as that for which the
exemption is claimed;
(3) The first handler maintains a valid
certificate of organic operation as issued
under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522) (OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205); and
(4) Any first handler so exempted
shall continue to be obligated to pay
assessments under this part that are

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

associated with any agricultural
products that do not qualify for an
exemption under this section.
(b) To apply for exemption under this
section, an eligible first handler shall
submit a request for exemption to the
Board on an Organic Exemption Request
Form (Form AMS–15) at any time
initially, and annually thereafter on or
before the beginning of the fiscal period,
as long as the first handler continues to
be eligible for the exemption.
(c) A first handler request for
exemption shall include the following:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(3) Certification that the applicant
handles organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a first handler complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
first handler within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
(e) An importer who imports products
that are eligible to be labeled as
‘‘organic’’ or ‘‘100 percent organic’’
under the NOP, or certified as ‘‘organic’’
or ‘‘100 percent organic’’ under a U.S.
equivalency arrangement established
under the NOP, shall be exempt from
the payment of assessments on those
products. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ mangos on an Organic
Exemption Request Form (Form AMS–
15) at any time initially, and annually
thereafter on or before the beginning of
the fiscal period, as long as the importer
continues to be eligible for exemption.
This documentation shall include the
same information required of first
handlers in paragraph (c) of this section.
If the importer complies with the
requirements of this section, the Board
will grant the exemption and issue a

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Certificate of Exemption to the importer
within the applicable timeframe. If
Customs collects the assessment on
exempt product that is identified as
‘‘organic’’ by a number in the
Harmonized Tariff Schedule, the Board
must reimburse the exempt importer the
assessments paid upon receipt of such
assessments from Customs. For all other
exempt organic product for which
Customs collects the assessment, the
importer may apply to the Board for a
reimbursement of assessments paid, and
the importer must submit satisfactory
proof to the Board that the importer
paid the assessment on exempt organic
product. Any importer so exempted
shall continue to be obligated to pay
assessments under this part that are
associated with any imported
agricultural products that do not qualify
for an exemption under this section.
*
*
*
*
*
(g) An importer who is exempt from
payment of assessments under
paragraph (e) of this section shall be
eligible for reimbursement of
assessments collected by the CBP on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ mangos and may apply to the
Secretary for a reimbursement. The
importer would be required to submit
satisfactory proof to the Secretary that
the importer paid the assessment on
exempt organic products.
PART 1207—POTATO RESEARCH
AND PROMOTION PLAN
11. The authority citation for 7 CFR
part 1207 continues to read as follows:

■

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

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

■

§ 1207.514
potatoes.

Exemption for organic

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

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commodity as that for which the
exemption is claimed;
(3) The producer maintains a valid
certificate of organic operation as issued
under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522)(OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205); and
(4) Any producer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
(b) To apply for exemption under this
section, the producer shall submit a
request to the Board on an Organic
Exemption Request Form (Form AMS–
15) at any time during the year initially,
and annually thereafter on or before July
1, for as long as the producer continues
to be eligible for the exemption.
(c) The producer request for
exemption shall include the following:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(3) Certification that the applicant
produces organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a producer complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
(e) A producer approved for
exemption under this section shall
provide a copy of the Certificate of
Exemption to each handler to whom the
producer sells potatoes. The handler
shall maintain records showing the
exempt producer’s name and address
and the exemption number assigned by
the Board.
(f) An importer who imports products
that are eligible to be labeled as
‘‘organic’’ or ‘‘100 percent organic’’
under the NOP, or certified as ‘‘organic’’
or ‘‘100 percent organic’’ under a U.S.

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations
equivalency arrangement established
under the NOP, shall be exempt from
the payment of assessments on those
products. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ potatoes, potato products, and
seed potatoes on an Organic Exemption
Request Form (Form AMS–15) at any
time initially, and annually thereafter
on or before July 1, as long as the
importer continues to be eligible for the
exemption. This documentation shall
include the same information required
of producers in paragraph (c) of this
section. If the importer complies with
the requirements of this section, the
Board will grant the exemption and
issue a Certificate of Exemption to the
importer. If Customs collects the
assessment on exempt product that is
identified as ‘‘organic’’ by a number in
the Harmonized Tariff Schedule, the
Board must reimburse the exempt
importer the assessments paid upon
receipt of such assessments from
Customs. For all other exempt organic
product for which Customs collects the
assessment, the importer may apply to
the Board for a reimbursement of
assessments paid, and the importer
must submit satisfactory proof to the
Board that the importer paid the
assessment on exempt organic product.
Any importer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any imported
agricultural products that do not qualify
for an exemption under this section.
*
*
*
*
*
PART 1208—PROCESSED
RASPBERRY PROMOTION,
RESEARCH, AND INFORMATION
ORDER
13. The authority citation for 7 CFR
part 1208 continues to read as follows:

■

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

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

■

§ 1208.53 Exemption and reimbursement
procedures.

tkelley on DSK3SPTVN1PROD with RULES3

*

*
*
*
*
(d) Organic exemption. (1) A producer
of raspberries for processing who
operates under an approved National
Organic Program (7 CFR part 205) (NOP)
organic production system plan may be
exempt from the payment of
assessments under this part, provided
that:
(i) Only agricultural products certified
as ‘‘organic’’ or ‘‘100 percent organic’’

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Jkt 238001

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

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82025

‘‘organic’’ or ‘‘100 percent organic’’
under the NOP, or certified as ‘‘organic’’
or ‘‘100 percent organic’’ under a U.S.
equivalency arrangement established
under the NOP, may be exempt from the
payment of assessments on those
products. Such importer may submit
documentation to the Council and
request an exemption from assessment
on certified ‘‘organic’’ or ‘‘100 percent
organic’’ processed raspberries on an
Organic Exemption Request Form (Form
AMS–15) at any time initially, and
annually thereafter on or before the
beginning of the fiscal period, as long as
the importer continues to be eligible for
the exemption. This documentation
shall include the same information
required of a producer in paragraph
(d)(3) of this section. If the importer
complies with the requirements of this
section, the Council will grant the
exemption and issue a Certificate of
Exemption to the importer within the
applicable timeframe. If Customs
collects the assessment on exempt
product that is identified as ‘‘organic’’
by a number in the Harmonized Tariff
Schedule, the Council must reimburse
the exempt importer the assessments
paid upon receipt of such assessments
from Customs. For all other exempt
organic product for which Customs
collects the assessment, the importer
may apply to the Council for a
reimbursement of assessments paid, and
the importer must submit satisfactory
proof to the Council that the importer
paid the assessment on exempt organic
product. Any importer so exempted
shall continue to be obligated to pay
assessments under this part that are
associated with any imported
agricultural products that do not qualify
for an exemption under this section.
*
*
*
*
*
PART 1209—MUSHROOM
PROMOTION, RESEARCH, AND
CONSUMER INFORMATION ORDER
15. The authority citation for 7 CFR
part 1209 continues to read as follows:

■

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

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

■

§ 1209.52

Exemption from assessment.

(a) The following persons shall be
exempt from assessments under this
part:
(1) A person who produces or
imports, on average, 500,000 pounds or
less of mushrooms annually shall be
exempt from assessments under this
part.

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

(2) [Reserved]
*
*
*
*
■ 17. In § 1209.252,
■ a. Revise the section heading;
■ b. Redesignate paragraph (a)(2) as
paragraph (a)(3);
■ c. Add new paragraph (a)(2); and
■ d. Revise newly redesignated
paragraph (a)(3).
The revision and addition read as
follows:
*

tkelley on DSK3SPTVN1PROD with RULES3

§ 1209.252 Exemptions and exemption
procedures.

(a) * * *
(2) In addition to the exemption
provided for in § 1209.52, a producer or
importer who operates under an
approved National Organic Program (7
CFR part 205) (NOP) organic production
or handling system plan may be exempt
from the payment of assessments under
this part, provided that:
(i) Only agricultural products certified
as ‘‘organic’’ or ‘‘100 percent organic’’
(as defined in the NOP) are eligible for
exemption;
(ii) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a producer or importer
regardless of whether the agricultural
commodity subject to the exemption is
produced or imported by a person that
also produces or imports conventional
or nonorganic agricultural products of
the same agricultural commodity as that
for which the exemption is claimed;
(iii) The producer or importer
maintains a valid certificate of organic
operation as issued under the Organic
Foods Production Act of 1990 (7 U.S.C.
6501–6522)(OFPA) and the NOP
regulations issued under OFPA (7 CFR
part 205); and
(iv) Any producer or importer so
exempted shall continue to be obligated
to pay assessments under this part that
are associated with any agricultural
products that do not qualify for an
exemption under this section.
(3) To apply for an exemption for
organic mushrooms:
(i) An eligible mushroom producer
shall submit a request for exemption to
the Council on an Organic Exemption
Request Form (Form AMS–15) at any
time initially, and annually thereafter
on or before January 1, as long as the
producer continues to be eligible for the
exemption.
(ii) A producer request for exemption
shall include the following:
(A) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(B) Certification that the applicant
maintains a valid certificate of organic

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Jkt 238001

operation issued under the OFPA and
the NOP;
(C) Certification that the applicant
produces organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(D) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(E) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(F) Such other information as may be
required by the Council, with the
approval of the Secretary.
(iii) If a producer complies with the
requirements of this section, the Council
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Council
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
(iv) An eligible mushroom importer
shall submit a request for exemption
from assessment on imported certified
‘‘organic’’ or ‘‘100 percent organic’’
mushrooms, or mushrooms certified as
‘‘organic’’ or ‘‘100 percent organic’’
under a U.S. equivalency arrangement
established under the NOP, on an
Organic Exemption Request Form (Form
AMS–15) at any time initially, and
annually thereafter on or before January
1, as long as the importer continues to
be eligible for the exemption. This
documentation shall include the same
information required of producers in
paragraph (a)(4)(ii) of this section. If the
importer complies with the
requirements of this section, the Council
will grant the exemption and issue a
Certificate of Exemption to the importer.
If Customs collects the assessment on
exempt product that is identified as
‘‘organic’’ by a number in the
Harmonized Tariff Schedule, the
Council must reimburse the exempt
importer the assessments paid upon
receipt of such assessments from
Customs. For all other exempt organic
product for which Customs collects the
assessment, the importer may apply to
the Council for a reimbursement of
assessments paid, and the importer
must submit satisfactory proof to the
Council that the importer paid the
assessment on exempt organic product.
Any importer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any imported
agricultural products that do not qualify
for an exemption under this section.

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(v) The exemption will apply
immediately following the issuance of
the Certificate of Exemption.
*
*
*
*
*
PART 1210—WATERMELON
RESEARCH AND PROMOTION PLAN
18. The authority citation for 7 CFR
part 1210 continues to read as follows:

■

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

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

■

§ 1210.516 Exemption for organic
watermelons.

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

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations
operation issued under the OFPA and
the NOP;
(3) Certification that the applicant
produces or handles organic products
eligible to be labeled ‘‘organic’’ or ‘‘100
percent organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a producer or handler complies
with the requirements of this section,
the Board will grant an assessment
exemption and issue a Certificate of
Exemption to the producer or handler
within 30 days. If the application is
disapproved, the Board will notify the
applicant of the reason(s) for
disapproval within the same timeframe.
*
*
*
*
*
(f) An importer who imports products
that are eligible to be labeled as
‘‘organic’’ or ‘‘100 percent organic’’
under the NOP, or certified as ‘‘organic’’
or ‘‘100 percent organic’’ under a U.S.
equivalency arrangement established
under the NOP, may be exempt from the
payment of assessments on those
products. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ watermelons on an Organic
Exemption Request Form (Form AMS–
15) at any time initially, and annually
thereafter on or before January 1, as long
as the importer continues to be eligible
for the exemption. This documentation
shall include the same information
required of producers in paragraph (c) of
this section. If the importer complies
with the requirements of this section,
the Board will grant the exemption and
issue a Certificate of Exemption to the
importer. If Customs collects the
assessment on exempt product that is
identified as ‘‘organic’’ by a number in
the Harmonized Tariff Schedule, the
Board must reimburse the exempt
importer the assessments paid upon
receipt of such assessments from
Customs. For all other exempt organic
product for which Customs collects the
assessment, the importer may apply to
the Board for a reimbursement of
assessments paid, and the importer
must submit satisfactory proof to the
Board that the importer paid the
assessment on exempt organic product.
Any importer so exempted shall
continue to be obligated to pay

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assessments under this part that are
associated with any imported
agricultural products that do not qualify
for an exemption under this section.
*
*
*
*
*
PART 1212—HONEY PACKERS AND
IMPORTERS RESEARCH,
PROMOTION, CONSUMER
EDUCATION AND INDUSTRY
INFORMATION ORDER
20. The authority citation for 7 CFR
part 1212 continues to read as follows:

■

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

21. In § 1212.53,
a. Redesignate paragraph (b) as
paragraph (c) and paragraph (c) as
paragraph (b); and
■ b. Revise newly redesignated
paragraph (c) and paragraphs (e) and (g).
The revisions read as follows:
■
■

§ 1212.53

Exemption from assessment.

*

*
*
*
*
(c) A first handler or importer who
operates under an approved National
Organic Program (7 CFR part 205) (NOP)
organic handling system plan may be
exempt from the payment of
assessments under this part, provided
that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP), or
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ under a U.S. equivalency
arrangement established under the NOP,
are eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a first handler or importer
regardless of whether the agricultural
commodity subject to the exemption is
handled or imported by a person that
also handles or imports conventional or
nonorganic agricultural products of the
same agricultural commodity as that for
which the exemption is claimed;
(3) The first handler or importer
maintains a valid certificate of organic
operation as issued under the Organic
Foods Production Act of 1990 (7 U.S.C.
6501–6522) (OFPA) and the NOP
regulations issued under OFPA (7 CFR
part 205); and
(4) Any first handler or importer so
exempted shall continue to be obligated
to pay assessments under this part that
are associated with any agricultural
products that do not qualify for an
exemption under this section.
(5) Persons eligible for an organic
assessment exemption as provided this
section may apply for such an
exemption by submitting a request to

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82027

the Board on an Organic Exemption
Request Form (Form AMS–15) at any
time during the year initially, and
annually thereafter on or before January
1, as long as the first handler or
importer continues to be eligible for the
exemption.
(i) A first handler or importer request
for exemption shall include the
following:
(A) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(B) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(C) Certification that the applicant
handles or imports organic products
eligible to be labeled ‘‘organic’’ or ‘‘100
percent organic’’ under the NOP;
(D) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(E) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(F) Such other information as may be
required by the Board, with the
approval of the Secretary.
(ii) Upon receipt of an application, the
Board shall determine whether an
exemption may be granted and issue a
Certificate of Exemption to the first
handler or importer within 30 calendar
days. If the application is disapproved,
the Board will notify the applicant of
the reason(s) for disapproval within the
same timeframe. It is the responsibility
of the first handler or importer to retain
a copy of the certificate of exemption.
*
*
*
*
*
(e) Exempt importers shall be eligible
for reimbursement of assessments
collected by Customs.
(1) Importers exempt under paragraph
(a) of this section must apply to the
Board for reimbursement of any
assessment paid. No interest will be
paid on the assessment collected by
Customs. Requests for reimbursement
must be submitted to the Board within
90 days of the last day of the calendar
year the honey or honey products were
imported.
(2) If Customs collects the assessment
on exempt product under paragraph (b)
of this section that is identified as
‘‘organic’’ by a number in the
Harmonized Tariff Schedule, the Board
must reimburse the exempt importer the
assessments paid upon receipt of such
assessments from Customs. For all other
exempt organic product for which
Customs collects the assessment, the
importer may apply to the Board for a

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reimbursement of assessments paid, and
the importer must submit satisfactory
proof to the Board that the importer
paid the assessment on exempt organic
product.
*
*
*
*
*
(g) Any person who desires an
exemption from assessments for a
subsequent calendar year shall reapply
to the Board for a certificate of
exemption.
*
*
*
*
*
PART 1214—CHRISTMAS TREE
PROMOTION, RESEARCH, AND
INFORMATION ORDER
22. The authority citation for 7 CFR
part 1214 continues to read as follows:

■

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

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

■

§ 1214.53 Exemption from and refunds of
assessments.

tkelley on DSK3SPTVN1PROD with RULES3

*

*
*
*
*
(c) Organic. (1) A producer who
domestically produces Christmas trees
under an approved National Organic
Program (7 CFR part 205) (NOP) organic
production system plan may be exempt
from the payment of assessments under
this part, provided that:
(i) Only agricultural products certified
as ‘‘organic’’ or ‘‘100 percent organic’’
(as defined in the NOP) are eligible for
exemption;
(ii) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a producer regardless of
whether the agricultural commodity
subject to the exemption is produced by
a person that also produces
conventional or nonorganic agricultural
products of the same agricultural
commodity as that for which the
exemption is claimed;
(iii) The producer maintains a valid
certificate of organic operation as issued
under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522) (OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205); and
(iv) Any producer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
(2) To apply for exemption under this
section, an eligible producer shall
submit a request to the Board on an
Organic Exemption Request Form (Form
AMS–15) at any time during the year
initially, and annually thereafter on or
before the start of the fiscal period, for

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as long as the producer continues to be
eligible for the exemption.
(3) A producer request for exemption
shall include the following:
(i) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(ii) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(iii) Certification that the applicant
produces organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(iv) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent;
(v) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(vi) Such other information as may be
required by the Board, with the
approval of the Secretary.
(4) If a producer complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
(5) An importer who imports
Christmas trees that are eligible to be
labeled as ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP, or certified as
‘‘organic’’ or ‘‘100 percent organic’’
under a U.S. equivalency arrangement
established under the NOP, may be
exempt from the payment of
assessments. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ Christmas trees on an Organic
Exemption Request Form (Form AMS–
15) at any time initially, and annually
thereafter on or before the beginning of
the fiscal period, as long as the importer
continues to be eligible for the
exemption. This documentation shall
include the same information required
of a producer in paragraph (c)(3) of this
section. If the importer complies with
the requirements of this section, the
Board will grant the exemption and
issue a Certificate of Exemption to the
importer within the applicable
timeframe. Any importer so exempted
shall continue to be obligated to pay
assessments under this part that are
associated with any imported
agricultural products that do not qualify
for an exemption under this section.
(6) If Customs collects the assessment
on exempt product under paragraph
(c)(5) of this section that is identified as

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‘‘organic’’ by a number in the
Harmonized Tariff Schedule, the Board
must reimburse the exempt importer the
assessments paid upon receipt of such
assessments from Customs. For all other
exempt organic product for which
Customs collects the assessment, the
importer may apply to the Board for a
reimbursement of assessments paid, and
the importer must submit satisfactory
proof to the Board that the importer
paid the assessment on exempt organic
product.
(7) The exemption will apply
immediately following the issuance of
the Certificate of Exemption.
PART 1215—POPCORN PROMOTION,
RESEARCH, AND CONSUMER
INFORMATION
24. The authority citation for 7 CFR
part 1215 continues to read as follows:

■

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

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

■

§ 1215.52

Exemption from assessment.

*

*
*
*
*
(b) Persons that operate under an
approved National Organic Program (7
CFR part 205) (NOP) organic handling
system plan may be exempt from the
payment of assessments under this part,
provided that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a processor regardless of
whether the agricultural commodity
subject to the exemption is processed by
a person that also processes
conventional or nonorganic agricultural
products of the same agricultural
commodity as that for which the
exemption is claimed;
(3) The processor maintains a valid
certificate of organic operation as issued
under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522) (OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205); and
(4) Any processor so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
*
*
*
*
*
■ 26. In § 1215.300:
■ a. Revise paragraph (b);
■ b. Redesignate paragraphs (c) through
(f) as paragraphs (d) through (g),
respectively;

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c. Add new paragraph (c); and
d. Revise newly redesignated
paragraph (d).
The revisions and addition read as
follows:

■
■

§ 1215.300

Exemption procedures.

*

*
*
*
*
(b) Persons eligible for an organic
assessment exemption as provided in
§ 1215.52(b) may apply for such an
exemption by submitting a request to
the Board on an Organic Exemption
Request Form (Form AMS–15) at any
time during the year initially, and
annually thereafter on or before January
1, as long as the processor continues to
be eligible for the exemption.
(c) A processor request for exemption
shall include the following:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(3) Certification that the applicant
processes organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) Upon receipt of an application, the
Board shall determine whether an
exemption may be granted and issue a
Certificate of Exemption to the
processor within 30 calendar days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
*
*
*
*
*
PART 1216—PEANUT PROMOTION,
RESEARCH, AND INFORMATION
ORDER
27. The authority citation for 7 CFR
part 1216 continues to read as follows:

■

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

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

tkelley on DSK3SPTVN1PROD with RULES3

■

§ 1216.56

Exemption for organic peanuts.

(a) A producer who operates under an
approved National Organic Program (7
CFR part 205) (NOP) organic production

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system plan may be exempt from the
payment of assessments under this part,
provided that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a producer regardless of
whether the agricultural commodity
subject to the exemption is produced by
a person that also produces
conventional or nonorganic agricultural
products of the same agricultural
commodity as that for which the
exemption is claimed;
(3) The producer maintains a valid
certificate of organic operation as issued
under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522) (OFPA)
and the NOP regulations issued under
OPFA (7 CFR part 205); and
(4) Any producer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
(b) In order to apply for this
exemption, an eligible peanut producer
shall submit a request to the Board on
an Organic Exemption Request Form
(Form AMS–15) at any time during the
year initially, and annually thereafter on
or before August 1, for as long as the
producer continues to be eligible for the
exemption.
(c) A producer request for exemption
shall include the following:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid organic certificate
issued under the OFPA and the NOP;
(3) Certification that the applicant
produces organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a producer complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)

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82029

for disapproval within the same
timeframe.
*
*
*
*
*
PART 1217—SOFTWOOD LUMBER
RESEARCH, PROMOTION,
CONSUMER EDUCATION AND
INDUSTRY INFORMATION ORDER
29. The authority citation for 7 CFR
part 1217 continues to read as follows:

■

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

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

■

§ 1217.53

Exemption from assessment.

*

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

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(ii) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(iii) Certification that the applicant
manufactures organic products eligible
to be labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(iv) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(v) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(vi) Such other information as may be
required by the Board, with the
approval of the Secretary.
(4) If a manufacturer complies with
the requirements of this section, the
Board will grant an assessment
exemption and issue a Certificate of
Exemption to the manufacturer within
30 calendar days. If the application is
disapproved, the Board will notify the
applicant of the reason(s) for
disapproval within the same timeframe.
(5) An importer who imports
softwood lumber that is eligible to be
labeled as ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP, or certified as
‘‘organic’’ or ‘‘100 percent organic’’
under a U.S. equivalency arrangement
established under the NOP, may be
exempt from the payment of
assessments. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ softwood lumber on an
Organic Exemption Request Form (Form
AMS–15) at any time initially, and
annually thereafter on or before the
beginning of the fiscal year, as long as
the importer continues to be eligible for
the exemption. This documentation
shall include the same information
required of a manufacturer in paragraph
(d)(3) of this section. If the importer
complies with the requirements of this
section, the Board will grant the
exemption and issue a Certificate of
Exemption to the importer within the
applicable timeframe. Any importer so
exempted shall continue to be obligated
to pay assessments under this part that
are associated with any imported
agricultural products that do not qualify
for an exemption under this section.
(6) If Customs collects the assessment
on exempt product under paragraph
(d)(5) of this section that is identified as
‘‘organic’’ by a number in the
Harmonized Tariff Schedule, the Board
must reimburse the exempt importer the
assessments paid upon receipt of such
assessments from Customs. For all other
exempt organic product for which

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Customs collects the assessment, the
importer may apply to the Board for a
reimbursement of assessments paid, and
the importer must submit satisfactory
proof to the Board that the importer
paid the assessment on exempt organic
product.
(7) The exemption will apply
immediately following the issuance of a
Certificate of Exemption.
PART 1218—BLUEBERRY
PROMOTION, RESEARCH, AND
INFORMATION ORDER
31. The authority citation for 7 CFR
part 1218 continues to read as follows:

■

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

32. In § 1218.53:
a. Revise paragraphs (c) and (d);
b. Remove paragraph (g);
c. Redesignate paragraphs (h) through
(k) as paragraphs (i) through (l),
respectively;
■ d. Redesignate paragraphs (e) and (f)
as paragraphs (g) and (h), respectively;
■ e. Add new paragraphs (e) and (f); and
■ f. Revise newly redesignated
paragraphs (g) and (j).
The revisions and additions read as
follows:
■
■
■
■

§ 1218.53

Exemption procedures.

*

*
*
*
*
(c) A producer who operates under an
approved National Organic Program (7
CFR part 205) (NOP) organic production
system plan may be exempt from the
payment of assessments under this part,
provided that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a producer regardless of
whether the agricultural commodity
subject to the exemption is produced by
a person that also produces
conventional or nonorganic agricultural
products of the same agricultural
commodity as that for which the
exemption is claimed;
(3) The producer maintains a valid
certificate of organic operation as issued
under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522) (OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205); and
(4) Any producer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
(d) To apply for exemption under this
section, a producer shall submit a

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request to the Council on an Organic
Exemption Request Form (Form AMS–
15) at any time during the year initially,
and annually thereafter on or before
January 1, for as long as the producer
continues to be eligible for the
exemption.
(e) A producer request for exemption
shall include the following:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(3) Certification that the applicant
produces organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Council, with the
approval of the Secretary.
(f) If a producer complies with the
requirements of this section, the Council
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Council
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
(g) An importer who imports products
that are eligible to be labeled as
‘‘organic’’ or ‘‘100 percent organic’’
under the NOP, or certified as ‘‘organic’’
or ‘‘100 percent organic’’ under a U.S.
equivalency arrangement established
under the NOP, may be exempt from the
payment of assessments on those
products. Such importer may submit
documentation to the Council and
request an exemption from assessment
on certified ‘‘organic’’ or ‘‘100 percent
organic’’ blueberries on an Organic
Exemption Request Form (Form AMS–
15) at any time initially, and annually
thereafter on or before January 1, as long
as the importer continues to be eligible
for the exemption. This documentation
shall include the same information
required of producers in paragraph (e) of
this section. If the importer complies
with the requirements of this section,
the Council will grant the exemption
and issue a Certificate of Exemption to
the importer. If Customs and Border
Protection (Customs) collects the
assessment on exempt product that is
identified as ‘‘organic’’ by a number in
the Harmonized Tariff Schedule, the

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations
Council must reimburse the exempt
importer the assessments paid upon
receipt of such assessments from
Customs. For all other exempt organic
product for which Customs collects the
assessment, the importer may apply to
the Council for a reimbursement of
assessments paid, and the importer
must submit satisfactory proof to the
Council that the importer paid the
assessment on exempt organic product.
Any importer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any imported
agricultural products that do not qualify
for an exemption under this section.
*
*
*
*
*
(j) Importers who are exempt from
payment of assessments shall be eligible
for reimbursement of assessments
collected by Customs and may apply to
the Council for a reimbursement of such
assessments paid. No interest will be
paid on assessments collected by
Customs. Requests for reimbursement
shall be submitted to the Council within
90 days of the last day of the year the
blueberries were actually imported.
*
*
*
*
*
PART 1219—HASS AVOCADO
PROMOTION, RESEARCH, AND
INFORMATION
33. The authority citation for 7 CFR
part 1219 continues to read as follows:

■

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

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

■

tkelley on DSK3SPTVN1PROD with RULES3

§ 1219.202 Exemption for organic Hass
avocados.

(a) A producer who operates under an
approved National Organic Program (7
CFR part 205) (NOP) organic production
system plan may be exempt from the
payment of assessments under this part,
provided that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a producer regardless of
whether the agricultural commodity
subject to the exemption is produced by
a person that also produces
conventional or nonorganic agricultural
products of the same agricultural
commodity as that for which the
exemption is claimed;
(3) The producer maintains a valid
certificate of organic operation as issued

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under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522) (OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205); and
(4) Any producer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
(b) To apply for exemption under this
section, an eligible Hass avocado
producer shall submit a request to the
Board on an Organic Exemption Request
Form (Form AMS–15) at any time
during the year initially, and annually
thereafter on or before November 1, for
as long as the producer continues to be
eligible for the exemption.
(c) A producer request for exemption
shall include the following:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(3) Certification that the applicant
produces organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a producer complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
*
*
*
*
*
(f) An importer who imports products
that are eligible to be labeled as
‘‘organic’’ or ‘‘100 percent organic’’
under the NOP, or certified as ‘‘organic’’
or ‘‘100 percent organic’’ under a U.S.
equivalency arrangement established
under the NOP, may be exempt from the
payment of assessments on those
products. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ Hass avocados on an Organic
Exemption Request Form (Form AMS–
15) at any time initially, and annually

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82031

thereafter on or before November 1, as
long as the importer continues to be
eligible for the exemption. This
documentation shall include the same
information required of producers in
paragraph (c) of this section. If the
importer complies with the
requirements of this section, the Board
will grant the exemption and issue a
Certificate of Exemption to the importer.
If Customs collects the assessment on
exempt product that is identified as
‘‘organic’’ by a number in the
Harmonized Tariff Schedule, the Board
must reimburse the exempt importer the
assessments paid upon receipt of such
assessments from Customs. For all other
exempt organic product for which
Customs collects the assessment, the
importer may apply to the Board for a
reimbursement of assessments paid, and
the importer must submit satisfactory
proof to the Board that the importer
paid the assessment on exempt organic
product. Any importer so exempted
shall continue to be obligated to pay
assessments under this part that are
associated with any imported
agricultural products that do not qualify
for an exemption under this section.
*
*
*
*
*
PART 1220—SOYBEAN PROMOTION,
RESEARCH, AND CONSUMER
INFORMATION
35. The authority citation for 7 CFR
part 1220 continues to read as follows:

■

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

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

■

§ 1220.302

Exemption.

(a) A producer who operates under an
approved National Organic Program (7
CFR part 205) (NOP) organic production
system plan may be exempt from the
payment of assessments under this part,
provided that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a producer regardless of
whether the agricultural commodity
subject to the exemption is produced by
a person that also produces
conventional or nonorganic agricultural
products of the same agricultural
commodity as that for which the
exemption is claimed;
(3) The producer maintains a valid
certificate of organic operation as issued

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522) (OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205); and
(4) Any producer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
(b) To apply for an exemption under
this section, the producer shall submit
a request to the Board on an Organic
Exemption Request Form (Form AMS–
15) at any time during the year initially,
and annually thereafter on or before
January 1, for as long as the producer
continues to be eligible for the
exemption.
(c) A producer request for exemption
shall include the following:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(3) Certification that the applicant
produces organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a producer complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
*
*
*
*
*
PART 1221—SORGHUM PROMOTION,
RESEARCH, AND INFORMATION
ORDER
37. The authority citation for 7 CFR
part 1221 continues to read as follows:

tkelley on DSK3SPTVN1PROD with RULES3

■

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

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

■

§ 1221.117

Exemptions.

*

*

*

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*

*

18:23 Dec 30, 2015

Jkt 238001

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

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(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(j) If the applicant complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer or importer within 30 days. If
the application is disapproved, the
Board will notify the applicant of the
reason(s) for disapproval within the
same timeframe.
*
*
*
*
*
PART 1222—PAPER AND PAPERBASED PACKAGING PROMOTION,
RESEARCH AND INFORMATION
ORDER
39. The authority citation for 7 CFR
part 1222 continues to read as follows:

■

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

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

■

§ 1222.53

Exemption from assessment.

*

*
*
*
*
(b) Organic. (1) A manufacturer who
operates under an approved National
Organic Program (7 CFR part 205) (NOP)
organic handling system plan may be
exempt from the payment of
assessments under this part, provided
that:
(i) Only agricultural products certified
as ‘‘organic’’ or ‘‘100 percent organic’’
(as defined in the NOP) are eligible for
exemption;
(ii) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a manufacturer regardless of
whether the agricultural commodity
subject to the exemption is
manufactured by a person that also
manufactures conventional or
nonorganic agricultural products of the
same agricultural commodity as that for
which the exemption is claimed;
(iii) The manufacturer maintains a
valid certificate of organic operation as
issued under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501–
6522) (OFPA) and the NOP regulations
issued under OFPA (7 CFR part 205);
and
(iv) Any manufacturer so exempted
shall continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
(2) To apply for exemption under this
section, an eligible manufacturer shall
submit a request to the Board on an
Organic Exemption Request Form (Form
AMS–15) at any time during the year

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations
initially, and annually thereafter on or
before the start of the fiscal year, as long
as the manufacturer continues to be
eligible for the exemption.
(3) A manufacturer request for
exemption shall include the following:
(i) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(ii) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(iii) Certification that the applicant
manufactures organic products eligible
to be labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(iv) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(v) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(vi) Such other information as may be
required by the Board, with the
approval of the Secretary.
(4) If a manufacturer complies with
the requirements of this section, the
Board will grant an assessment
exemption and issue a Certificate of
Exemption to the manufacturer within
30 calendar days. If the application is
disapproved, the Board will notify the
applicant of the reason(s) for
disapproval within the same timeframe.
(5) An importer who imports paper
and paper-based packaging that is
eligible to be labeled as ‘‘organic’’ or
‘‘100 percent organic’’ under the NOP,
or certified as ‘‘organic’’ or ‘‘100 percent
organic’’ under a U.S. equivalency
arrangement established under the NOP,
may be exempt from the payment of
assessments. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ paper and paper-based
packaging on an Organic Exemption
Request Form (Form AMS–15) at any
time initially, and annually thereafter
on or before the beginning of the fiscal
year, as long as the importer continues
to be eligible for the exemption. This
documentation shall include the same
information required of a manufacturer
in paragraph (b)(3) of this section. If the
importer complies with the
requirements of this section, the Board
will grant the exemption and issue a
Certificate of Exemption to the importer
within the applicable timeframe. Any
importer so exempted shall continue to
be obligated to pay assessments under
this part that are associated with any
imported agricultural products that do

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Jkt 238001

not qualify for an exemption under this
section.
(6) If Customs collects the assessment
on exempt product under paragraph
(b)(5) of this section that is identified as
‘‘organic’’ by a number in the
Harmonized Tariff Schedule, the Board
must reimburse the exempt importer the
assessments paid upon receipt of such
assessments from Customs. For all other
exempt organic product for which
Customs collects the assessment, the
importer may apply to the Board for a
reimbursement of assessments paid, and
the importer must submit satisfactory
proof to the Board that the importer
paid the assessment on exempt organic
product.
(7) The exemption will apply
immediately following the issuance of a
Certificate of Exemption.
PART 1230—PORK PROMOTION,
RESEARCH, AND CONSUMER
INFORMATION
41. The authority citation for 7 CFR
part 1230 continues to read as follows:

■

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

42. In § 1230.102, revise paragraphs
(a), (b), (c), (d), (g), and (i) to read as
follows:

■

§ 1230.102

Exemption.

(a) A producer who operates under an
approved National Organic Program (7
CFR part 205) (NOP) organic production
system plan may be exempt from the
payment of assessments under this part,
provided that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a producer regardless of
whether the agricultural commodity
subject to the exemption is produced by
a person that also produces
conventional or nonorganic agricultural
products of the same agricultural
commodity as that for which the
exemption is claimed;
(3) The producer maintains a valid
certificate of organic operation as issued
under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522) (OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205); and
(4) Any producer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.

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82033

(b) To apply for exemption under this
section, a producer shall submit a
request to the Board on an Organic
Exemption Request Form (Form AMS–
15) at any time during the year initially,
and annually thereafter on or before
January 1, for as long as the producer
continues to be eligible for the
exemption.
(c) A producer request for exemption
shall include the following:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(3) Certification that the applicant
produces organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a producer complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
*
*
*
*
*
(g) An importer who imports products
that are eligible to be labeled as
‘‘organic’’ or ‘‘100 percent organic’’
under the NOP, or certified as ‘‘organic’’
or ‘‘100 percent organic’’ under a U.S.
equivalency arrangement established
under the NOP, may be exempt from the
payment of assessments on those
products. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ porcine animals or pork and
pork products on an Organic Exemption
Request Form (Form AMS–15) at any
time initially, and annually thereafter
on or before January 1, as long as the
importer continues to be eligible for the
exemption. This documentation shall
include the same information required
of producers in paragraph (c) of this
section. If the importer complies with
the requirements of this section, the
Board will grant the exemption and
issue a Certificate of Exemption to the

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

importer. The Board will also issue the
importer an alphanumeric number valid
for 1 year from the date of issue. This
alphanumeric number should be
entered by the importer on the Customs
entry documentation. Any line item
entry of ‘‘organic’’ or ‘‘100 percent
organic’’ porcine animals or pork and
pork products bearing this
alphanumeric number assigned by the
Board will not be subject to
assessments. Any importer so exempted
shall continue to be obligated to pay
assessments under this part that are
associated with any imported
agricultural products that do not qualify
for an exemption under this section.
*
*
*
*
*
(i) An importer who is exempt from
payment of assessments under
paragraph (g) of this section shall be
eligible for reimbursement of
assessments collected by Customs on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ porcine animals or pork and
pork products and may apply to the
Secretary for a reimbursement. The
importer would be required to submit
satisfactory proof to the Secretary that
the importer paid the assessment on
exempt organic products.
PART 1250—EGG RESEARCH AND
PROMOTION
43. The authority citation for 7 CFR
part 1250 continues to read as follows:

■

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

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

■

§ 1250.530 Certification of exempt
producers.

tkelley on DSK3SPTVN1PROD with RULES3

*

*
*
*
*
(b) Organic Production. (1) A
producer who operates under an
approved National Organic Program (7
CFR part 205) (NOP) organic production
system plan may be exempt from the
payment of assessments under this part,
provided that:
(i) Only agricultural products certified
as ‘‘organic’’ or ‘‘100 percent organic’’
(as defined in the NOP) are eligible for
exemption;
(ii) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a producer regardless of
whether the agricultural commodity
subject to the exemption is produced by
a person that also produces
conventional or nonorganic agricultural
products of the same agricultural
commodity as that for which the
exemption is claimed;
(iii) The producer maintains a valid
certificate of organic operation as issued

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under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501–6522)(OFPA)
and the NOP regulations issued under
OFPA (7 CFR part 205); and
(iv) Any producer so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
(2) To apply for exemption under this
section, a producer shall submit a
request to the Board on an Organic
Exemption Request Form (Form AMS–
15) at any time during the year initially,
and annually thereafter on or before
January 1, for as long the producer
continues to be eligible for the
exemption.
(3) A producer request for exemption
shall include the following:
(i) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(ii) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(iii) Certification that the applicant
produces organic products eligible to be
labeled ‘‘organic’’ or ‘‘100 percent
organic’’ under the NOP;
(iv) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(v) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(vi) Such other information as may be
required by the Board, with the
approval of the Secretary.
(4) If a producer complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
producer within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
(5) The producer shall provide a copy
of the Certificate of Exemption to each
handler to whom the producer sells
eggs. The handler shall maintain records
showing the exempt producer’s name
and address and the exemption number
assigned by the Board.
(6) The exemption will apply at the
first reporting period following the
issuance of the Certificate of Exemption.
*
*
*
*
*
PART 1260—BEEF PROMOTION AND
RESEARCH
45. The authority citation for 7 CFR
part 1260 continues to read as follows:

■

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

46. In § 1260.302, revise paragraphs
(a), (b), (c), (d), (g), and (i) to read as
follows:

■

§ 1260.302

Organic exemption.

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

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Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

tkelley on DSK3SPTVN1PROD with RULES3

(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a producer complies with the
requirements of this section, the Board
or QSBC will grant an assessment
exemption and issue a Certificate of
Exemption to the producer within 30
days. If the application is disapproved,
the Board or QSBC will notify the
applicant of the reason(s) for
disapproval within the same timeframe.
*
*
*
*
*
(g) An importer who imports products
that are eligible to be labeled as
‘‘organic’’ or ‘‘100 percent organic’’
under the NOP, or certified as ‘‘organic’’
or ‘‘100 percent organic’’ under a U.S.
equivalency arrangement established
under the NOP, may be exempt from the
payment of assessments on those
products. Such importer may submit
documentation to the Board and request
an exemption from assessment on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ cattle or beef and beef products
on an Organic Exemption Request Form
(Form AMS–15) at any time initially,
and annually thereafter on or before
January 1, as long as the importer
continues to be eligible for the
exemption. This documentation shall
include the same information required
of producers in paragraph (c) of this
section. If the importer complies with
the requirements of this section, the
Board will grant the exemption and
issue a Certificate of Exemption to the
importer. The Board will also issue the
importer an alphanumeric number valid
for 1 year from the date of issue. This
alphanumeric number should be
entered by the importer on the Customs
entry documentation. Any line item
entry of ‘‘organic’’ or ‘‘100 percent
organic’’ cattle or beef and beef products
bearing this alphanumeric number
assigned by the Board will not be
subject to assessments. Any importer so
exempted shall continue to be obligated
to pay assessments under this part that
are associated with any imported
agricultural products that do not qualify
for an exemption under this section.
*
*
*
*
*

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(i) An importer who is exempt from
payment of assessments under
paragraph (g) of this section shall be
eligible for reimbursement of
assessments collected by Customs on
certified ‘‘organic’’ or ‘‘100 percent
organic’’ cattle or beef and beef products
and may apply to the Secretary for a
reimbursement. The importer would be
required to submit satisfactory proof to
the Secretary that the importer paid the
assessment on exempt organic products.
PART 1280—LAMB PROMOTION,
RESEARCH, AND INFORMATION
ORDER
47. The authority citation for 7 CFR
part 1280 continues to read as follows:

■

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

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

■

§ 1280.406

Exemption.

(a) A producer, seed stock producer,
feeder, handler, or exporter who
operates under an approved National
Organic Program (7 CFR part 205) (NOP)
organic production or handling system
plan may be exempt from the payment
of assessments under this part, provided
that:
(1) Only agricultural products
certified as ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP) are
eligible for exemption;
(2) The exemption shall apply to all
certified ‘‘organic’’ or ‘‘100 percent
organic’’ (as defined in the NOP)
products of a producer, handler, or
exporter regardless of whether the
agricultural commodity subject to the
exemption is produced, handled, or
exported by a person that also produces,
handles, or exports conventional or
nonorganic agricultural products of the
same agricultural commodity as that for
which the exemption is claimed;
(3) The producer, handler, or exporter
maintains a valid certificate of organic
operation as issued under the Organic
Foods Production Act of 1990 (7 U.S.C.
6501–6522) (OFPA) and the NOP
regulations issued under OFPA (7 CFR
part 205); and

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82035

(4) Any person so exempted shall
continue to be obligated to pay
assessments under this part that are
associated with any agricultural
products that do not qualify for an
exemption under this section.
(b) To apply for exemption under this
section, the person shall submit a
request to the Board on an Organic
Exemption Request Form (Form AMS–
15) at any time during the year initially,
and annually thereafter on or before
January 1, for as long as the producer
continues to be eligible for the
exemption.
(c) The request for exemption shall
include the following:
(1) The applicant’s full name,
company name, address, telephone and
fax numbers, and email address;
(2) Certification that the applicant
maintains a valid certificate of organic
operation issued under the OFPA and
the NOP;
(3) Certification that the applicant
produces, handles, or exports organic
products eligible to be labeled ‘‘organic’’
or ‘‘100 percent organic’’ under the
NOP;
(4) A requirement that the applicant
attach a copy of their certificate of
organic operation issued by a USDAaccredited certifying agent under the
OFPA and the NOP;
(5) Certification, as evidenced by
signature and date, that all information
provided by the applicant is true; and
(6) Such other information as may be
required by the Board, with the
approval of the Secretary.
(d) If a person complies with the
requirements of this section, the Board
will grant an assessment exemption and
issue a Certificate of Exemption to the
applicant within 30 days. If the
application is disapproved, the Board
will notify the applicant of the reason(s)
for disapproval within the same
timeframe.
*
*
*
*
*
Dated: December 21, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2015–32517 Filed 12–30–15; 8:45 am]
BILLING CODE 3410–02–P

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