[Federal Register Volume 67, Number 185 (Tuesday, September 24, 2002)]
[Rules and Regulations]
[Pages 59769-59770]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24186]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 67, No. 185 / Tuesday, September 24, 2002 / 
Rules and Regulations  

[[Page 59769]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 201

[Docket No. LS-02-12]


Enforcement of the Varietal Labeling Provisions of the Federal 
Seed Act

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Policy statement.

-----------------------------------------------------------------------

SUMMARY: The purpose of this policy statement is to make clear that the 
Agricultural Marketing Service (AMS) has a comprehensive compliance 
program in place that monitors and tests seed shipped in interstate 
commerce for truthful varietal labeling.

FOR FURTHER INFORMATION CONTACT: Richard C. Payne, Chief, Seed 
Regulatory and Testing Branch, Livestock and Seed Program, AMS, USDA, 
Room 209, Building 306, BARC-East, Beltsville, Maryland 20705-2325; 
Telephone: (301) 504-9237; Fax: (301) 504-8098; E-mail: 
[email protected].

SUPPLEMENTARY INFORMATION: Occasionally issues or questions relating to 
Federal Seed Act (FSA) enforcement have been raised by the public. 
Recently, numerous interested parties, including officials of the 
National Cattlemen's Beef Association and Mississippi State University, 
have expressed concern that with the expiration of the Plant Variety 
Protection Certificate issued under the Plant Variety Protection Act 
for the Marshall variety of annual ryegrass, inferior seed of other 
varieties may be marketed as Marshall annual ryegrass. The purpose of 
this policy statement is to make clear that AMS views the varietal 
mislabeling of seed as a serious violation of the FSA. AMS has a 
comprehensive program in place that consists of monitoring and testing 
seed lots to determine if they have the correct varietal labeling. A 
range of options are available that AMS will use to enforce the 
varietal labeling provisions of the FSA. Persons with knowledge of 
labeling violations of seed shipped in interstate commerce are invited 
to report them to AMS.
    Federal Seed Act Policy: The Federal Seed Act (FSA) (7 U.S.C. 1551-
1611) is a truth-in-labeling law that regulates the labeling of seed in 
interstate commerce. The FSA is enforced with the aid of State seed 
control programs as authorized under cooperative agreements between 
State Departments of Agriculture and USDA's AMS. Qualified seed 
inspectors, authorized by AMS'' Seed Regulatory and Testing Branch 
(SRTB), draw official seed samples. A portion of the official sample is 
tested by the State seed laboratory. If the test results are out of 
tolerance with labeled information, a portion of the official sample, 
sampling documentation, test results, and a copy of the seed label are 
sent to the SRTB. If a subsequent test of the official sample by the 
SRTB confirms the State's test results, an investigation of the seed 
shipment is undertaken.
    Many State seed control laboratories, as well as the SRTB, also 
conduct laboratory tests to determine if seed shipments are labeled 
with the correct variety name. Official instructions for conducting 
these tests are contained in the FSA regulations (7 CFR 201.58a).
    Each year the SRTB conducts trueness-to-variety (TTV) field tests 
to determine the accuracy of variety labeling of seed lots shipped in 
interstate commerce. Varietal identification may be based on seedling, 
growing plant, or mature plant characteristics (7 CFR 201.58a). The 
authority for making tests and applying tolerances to determine the 
accuracy of labeling is contained in section 403 of the FSA (7 U.S.C. 
1593). The officially drawn samples, submitted by state seed control 
programs, are grouped and planted by variety along with an authentic 
sample of the variety in question by a university or State Department 
of Agriculture agronomist by contractual arrangement. In addition, the 
agronomist assists the SRTB staff in evaluating the samples for correct 
varietal labeling. Approximately 2,000 samples are evaluated annually 
in the TTV field testing program. The kinds of seed tested include 
field crops, vegetables, forages, and turf grasses. Shipments of 
mislabeled seed are investigated as potential FSA violations.
    Interstate seed shippers are required to keep receiving and 
shipping records that include the variety name for each lot of seed 
they ship in interstate commerce (7 CFR 201.7). These records are 
routinely examined during investigations of other FSA violations to 
determine if the variety shipped was correctly labeled.
    AMS considers violations of the FSA labeling provisions as serious 
violations of law and is committed to vigorous enforcement of the FSA 
through the full range of available enforcement authorities.
    Enforcement actions typically involve the assessment of a monetary 
penalty against seed companies that ship mislabeled seed in violation 
of the FSA. The amount of the monetary penalty depends on the severity 
of the violation and the number of violations the company has had in 
the past. If the violation is considered minor, and the company has had 
no other violations in the past five years, a letter of warning will be 
sent to the company. If the violation is considered a major violation 
or the company has a history of violations, the company will be 
notified of the violations and given an opportunity to respond. If, 
after considering the company's response, AMS continues to believe that 
a violation of the FSA has occurred, monetary penalties as provided by 
section 406 of the FSA (7 U.S.C. 1596) will be assessed. The amount of 
the penalty for each violation depends upon a violator's compliance 
history and the seriousness of the violation.
    In addition to monetary penalty actions, the FSA provides 
additional enforcement authorities which AMS will consider in 
appropriate cases. Section 405 of the FSA (7 U.S.C. 1595) authorizes 
the Department of Agriculture to bring a proceeding in Federal district 
court to seize any seed sold or transported in interstate commerce in 
violation of the FSA. If the court finds in favor of the USDA, the seed 
can be sold, destroyed, or returned to the owner after payment of all 
costs and the execution of a bond ensuring that seed will not be sold 
in violation of the provisions of the FSA.

[[Page 59770]]

    Section 409 of the FSA (7 U.S.C. 1599) authorizes the USDA to 
initiate an administrative proceeding against anyone who violates any 
FSA provision or regulation, and to issue an order to cease and desist 
from continuing such violation. In the event the violator does not 
cease and desist, the order may be enforced in the Federal courts 
pursuant to section 411 of the FSA (7 U.S.C. 1601).
    If a violation is knowingly committed, sections 406(a) (7 U.S.C. 
1596(a)) and 407 of the FSA (7 U.S.C. 1957) allow the USDA to initiate 
criminal charges against such violators. This criminal provision also 
applies to violations which are the result of gross negligence or the 
result of the violator's failure to make a reasonable effort to be 
informed of the pertinent facts. Violators of this provision may be 
punished by a fine of $1,000 for the first offense, and $2,000 for each 
subsequent offense. In addition, civil settlements described in section 
406(b) of the FSA (7 U.S.C. 1596(b)) apply to violations that are not 
deemed to be due to gross negligence. Violators of this provision shall 
forfeit not less than $25 or more than $500 for each violation.
    AMS is committed to enforcement of the labeling provisions of the 
FSA through its ongoing program of testing and monitoring, and 
encourages persons with knowledge of FSA violations to report them to: 
Richard C. Payne, Chief, Seed Regulatory and Testing Branch, Livestock 
and Seed Program, AMS, USDA, Room 209, Building 306, BARC-East, 
Beltsville, Maryland 20705-2325; Telephone: (301) 504-9237; Fax: (301) 
504-8098; E-mail: [email protected].

    Dated: September 17, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-24186 Filed 9-23-02; 8:45 am]
BILLING CODE 3410-02-P