[Federal Register Volume 68, Number 195 (Wednesday, October 8, 2003)]
[Notices]
[Pages 58058-58060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25459]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
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  Federal Register / Vol. 68, No. 195 / Wednesday, October 8, 2003 / 
Notices  

[[Page 58058]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Doc. No. TM-03-08]


Request for an Extension of and Revision to a Currently Approved 
Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice and request for comments.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. Chapter 35), this notice announces the Agricultural Marketing 
Service's intention to request approval from the Office of Management 
and Budget, for an extension of and revision to the currently approved 
information collection National Organic Program Record Keeping 
Requirements.

DATES: Comments received by December 8, 2003 will be considered.

ADDITIONAL INFORMATION OR COMMENTS: Contact Toni Strother, National 
Organic Program, Transportation and Marketing Programs, Agricultural 
Marketing Service, U.S. Department of Agriculture, 1400 Independence 
Ave., SW., Room 4008-So., Ag Stop 0268, Washington, DC 20250, telephone 
(202) 720-3252, fax (202) 205-7808.

SUPPLEMENTARY INFORMATION:
    Title: National Organic Program.
    OMB Number: 0581-0191.
    Expiration Date Of ApprovaI: January 31, 2004.
    Type of Request: Extension and Revision of a currently approved 
information collection.
    Abstract: The Organic Foods Production Act of 1990 (OFPA) as 
amended (7 U.S.C. 6501 et seq.) mandates that the Secretary develop a 
National Organic Program (NOP) to accredit eligible State program's 
governing State officials or private persons as certifying agents who 
would certify producers or handlers of agricultural products that have 
been produced using organic methods as provided for in OFPA. This 
regulation: (1) Established national standards governing the marketing 
of certain agricultural products as organically produced products; (2) 
assures consumers that organically produced products meet a consistent 
standard; and (3) facilitates interstate commerce in fresh and 
processed food that is organically produced. The NOP requires that 
agricultural products labeled ``organic'' be from a production or 
handling operation that is certified by a certifying agent who is 
accredited by the U.S. Department of Agriculture (USDA).
    Proposed rules to implement OFPA were published in December 1997 
and March 2000. Both contained information collection requirements, an 
estimate of the annual economic burden on the organic industry, and a 
request for comments about the burden. The Agricultural Marketing 
Service (AMS) addressed these comments in the final rule published on 
December 21, 2000 (65 FR 80548) to ensure that the least amount of the 
burden is placed on the public.
    Reporting and recordkeeping are essential to the integrity of the 
organic certification system. They create a paper trail that is a 
critical element in carrying out the mandate of OFPA and NOP. They 
serve the AMS mission, program objectives, and management needs by 
providing information on the efficiency and effectiveness of the 
program. The information affects decisions because it is the basis for 
evaluating compliance with OFPA and NOP, for administering the program, 
for management decisions and planning, and for establishing the cost of 
the program. It supports administrative and regulatory actions in 
response to noncompliance with OFPA and NOP.
    In general, the information collected is used by USDA, State 
program governing State officials, and certifying agents. It is created 
and submitted by State and foreign program officials, peer review panel 
members, accredited certifying agents, organic inspectors, certified 
organic producers and handlers, those seeking accreditation or 
certification, and parties interested in changing the National List. 
Additionally, it necessitates that all of these entities have 
procedures and space for recordkeeping. The burden on each entity is 
discussed below.
    USDA. USDA is the accrediting authority. USDA accredits domestic 
and foreign certifying agents who certify domestic and foreign organic 
producers and handlers, using information from the agents documenting 
their business operations and program expertise. USDA also permits 
State program governing State officials to establish their own organic 
certification programs after the programs are approved by the 
Secretary, using information from the States documenting their ability 
to operate such programs and showing that such programs meet the 
requirements of OFPA and NOP.
    States. State program governing State officials may operate their 
own organic certification programs. State officials obtain the 
Secretary's approval of their programs by submitting information to 
USDA documenting their ability to operate such programs and showing 
that such programs meet the requirements of OFPA and NOP. To date no 
State organic certification programs have been approved by USDA. Upon 
approval State organic certification programs will require reporting 
and recordkeeping burdens similar to those required by the NOP. The 
annual burden for each State will be an average of 74 hours or if 
calculated at a rate of $27 per hour (rounded up to the next dollar) 
$1,998.
    Peer review panels. The panel assists the AMS Administrator in 
evaluating NOP's adherence to the accreditation procedures in subpart F 
of the regulations and International Organization for standards/
International Electro-technical Commission Guide 61, General 
requirements for assessment and accreditation of certification/
registration bodies, and NOP's accreditation decisions. The American 
National Standards Institute (ANSI) was selected by the NOP to perform 
the peer review assessment. The peer review panel consists of three 
individuals, two ANSI provided assessors and one NOP technical expert. 
Estimates: Three people participate in the peer review panel. The 
annual burden for each panel member is an average of 4 hours or if 
calculated at a rate of $27 per hour (rounded up to the next dollar) 
$108.
    Certifying agents. Certifying agents are State program governing 
State officials, private entities, or foreign entities who are 
accredited by USDA to certify

[[Page 58059]]

domestic and foreign producers and handlers as organic in accordance 
with OFPA and NOP. Each entity wanting to be an agent seeks 
accreditation from USDA, submitting information documenting its 
business operations and program expertise. Accredited agents determine 
if a producer or handler meets organic requirements, using detailed 
information from the operation documenting its specific practices and 
on-site inspection reports from organic inspectors. Initial estimates 
were based on 59 entities applying for accreditation (13 State 
programs, 36 private entities, 10 foreign entities). The initial burden 
for each State program was an average of 695 hours or if calculated at 
a rate of $27 per hour (rounded up to the next dollar) $18,765. The 
initial burden for each private or foreign entity was 700 hours or if 
calculated at a rate of $27 per hour (rounded up to the next dollar) 
$18,900. To date 87 certifying agents (15 State programs, 38 private 
entities, 34 foreign entities) have been accredited. The AMS 
anticipates receiving an estimated 10 new applications per year. 
Accredited certifying agents submit annual updates with an annual 
burden, for each certifying agent, of an average of 3 hours or if 
calculated at a rate of $27 per hour (rounded up to the next dollar) 
$81.
    Administrative costs for reporting, disclosure of information, and 
recordkeeping vary among certifying agents. Factors affecting costs 
include the number and size of clients, the categories of certification 
provided, and the type of systems maintained.
    When an entity applies for accreditation as a certifying agent, it 
must provide a copy of its procedures for complying with recordkeeping 
requirements (Sec.  205.504 (b)(3)). Once certified, agents have to 
make their records available for inspection and copying by authorized 
representatives of the Secretary (Sec.  205.501 (a)(9)). The USDA 
charges certifying agents for the time required to do these document 
reviews. Audits require less time when the documents are well organized 
and centrally located.
    Recordkeeping requirements for certifying agents are divided into 
three categories of records with varying retention periods: (1) Records 
created by certifying agents regarding applicants for certification and 
certified operations, maintain 10 years, consistent with OFPA's 
requirement for maintaining all records concerning activities of 
certifying agents; (2) records obtained from applicants for 
certification and certified operations, maintain 5 years, the same as 
OFPA's requirement for the retention of records by certified 
operations; and (3) records created or received by certifying agents 
regarding accreditation, maintain 5 years, consistent with OFPA's 
requirement for renewal of agent's accreditation (Sec.  205.5 10 (b)).
    Organic inspectors. Inspectors, on behalf of certifying agents, 
conduct on-site inspections of certified operations and operations 
applying for certification. They determine whether or not certification 
should continue or be granted and report their findings to the 
certifying agent. Inspectors are the agents themselves, employees of 
the agents, or individual contractors. We estimate that about half are 
certifying agents and their employees and half are individual 
contractors. Individuals who apply for positions as inspectors submit 
to the agents information documenting their qualifications to conduct 
such inspections. Estimates: 293 inspectors (147 certifying agents and 
their employees, 146 individual contractors). The annual burden for 
each inspector is an average of 48 hours or if calculated at $27 per 
hour (rounded up to the next dollar) $1,296.
    Producers and handlers. Producers and handlers, domestic and 
foreign, apply to certifying agents for organic certification, submit 
detailed information documenting their specific practices, provide 
annual updates to continue their certification, and report changes in 
their practices. Producers include farmers, livestock and poultry 
producers, and wild crop harvesters. Handlers include those who 
transport or transform food and include millers, bulk distributors, 
food manufacturers, processors, repackagers, or packers. Some handlers 
are part of a retail operation that processes organic products in a 
location other than the premises of the retail outlet.
    The OFPA requires certified operators to maintain their records for 
5 years. Initial estimates of: 19,400 total operators (14,253 certified 
and 5,147 exempt), including 17,150 producers (12,176 certified and 
4,974 exempt) and 2,150 handlers (1,977 certified and 173 exempt) have 
not changed. The annual recordkeeping burden for each certified 
operator is an average of 5 hours or if calculated at $24 per hour 
(rounded up to the next dollar) $120.
    The NOP exempts certain operations from certification: (1) 
Producers and handlers whose gross agricultural income from organic 
sales totals $5,000 or less annually; (2) handlers selling only 
agricultural products that contain less than 70 percent organic 
ingredients by total weight of the finished product; (3) handlers that 
handle agricultural products that contain at least 70 percent organic 
ingredients and choose to use the word ``organic'' only on the 
information panel of a packaged product; and (4) handlers that are 
retail food establishments that handle organic food but do not process 
it. The NOP also excludes certain operations from certification: (1) 
Handlers selling only agricultural products labeled as organic or made 
with organic ingredients that are enclosed in a container prior to 
being received, remain in the same container, and are not otherwise 
processed while in the control of the operation; and (2) handlers that 
are retail food establishments that process or prepare, on the 
premises, raw and ready-to-eat food from organic agricultural products.
    Administrative costs for reporting and recordkeeping vary among 
certified operators. Factors affecting costs include the type and size 
of operation, and the type of systems maintained.
    Research studies have indicated that operations using product 
labels containing the term ``organic'' handle an average of 19.5 labels 
annually and that there are about 16,000 products with the term organic 
on the label. An estimate of the time needed to develop labels for 
products sold, labeled, or represented as ``100 percent organic,'' 
``organic,'' ``made with organic (specified ingredients),'' or which 
use the term organic to modify an ingredient in the ingredients 
statement is included. Also included is the time spent deciding about 
use of the USDA seal, a State emblem, or the seal, logo, or other 
identifying marks of a private certifying agent (Sec. 205.300-Sec. 
205.310). Because the labeling requirements are in addition to Food and 
Drug Administration and Food Safety and Inspection Service 
requirements, the burden measurement does not include the hours 
necessary to develop the entire label. For purposes of calculating the 
burden, it is estimated that each handler develops 20 labels annually. 
Estimates: 1,977 certified handlers. The annual burden for each 
certified handler is an average of 1 hour per product label times 20 
product labels per handler or if calculated at a rate of $27 per hour 
(rounded up to the next dollar) $540.
    Interested parties. Any interested party may petition the NOSB for 
the purpose of having a substance evaluated for recommendation to the 
Secretary for inclusion on or deletion from the National List. 
Estimates: 25 interested parties may petition the NOSB. The annual 
burden for each interested party is an average of 104 hours or if 
calculated at $24 per hour (rounded up to the next dollar) $2,496.

[[Page 58060]]

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 1.72 hours per response.
    Respondents: Producers, handlers, certifying agents, inspectors and 
State, Local or Tribal governments and interested parties.
    Estimated Number of Respondents: 19,766.
    Estimated Number of Responses: 345,912.
    Estimated Number of Responses Per Respondent: 17.5.
    Estimated Total Annual Burden on Respondents: 593,523.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (4) ways 
to minimize the burden of the collection of information on those who 
are to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology. Comments may be sent to: Richard H. Mathews, 
Program Manager, National Organic Program, USDA-AMS-TM-NOP, 1400 
Independence Ave., SW., Room 4008-S0., Ag Stop 0268, Washington, DC 
20250 or via the Internet at: [email protected], or by fax at: (202) 
205-7808. All comments received will be available for public inspection 
during regular business hours at the same address. Also, all comments 
to this notice will be available for viewing on the NOP homepage at 
http://www.ams.usda.gov/nop.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments will become a matter of public 
record.

    Authority: 7 U.S.C. 6501-6522.

    Dated: October 2, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-25459 Filed 10-7-03; 8:45 am]
BILLING CODE 3410-02-P