Exemption in organic certification refers to the allowance for certain producers and handlers of organic products to operate without undergoing formal certification by the USDA, provided they meet specific criteria.
Key Features of the Exemption
- Sales Threshold: The exemption applies specifically to producers and handlers with gross annual organic sales of $5,000 or less. This threshold is crucial for determining eligibility.
- No Certification Required: Exempt operations do not need to be certified to sell, label, or represent their products as organic. However, they cannot use the USDA organic seal or claim their products as “certified organic”.
- Compliance with Regulations: While exempt from certification, these operations must still comply with all other USDA organic regulations, including maintaining practices that prevent contact with prohibited substances and following specific labeling requirements.
- Recordkeeping Recommendations: While formal recordkeeping is not required, it is advisable for exempt producers to maintain detailed records of their production practices and sales to demonstrate compliance if necessary.
- Organic Practices Required: Even without certification, exempt producers must adhere to the organic production and handling requirements set forth by the USDA, which include using organic seeds, maintaining soil health, and avoiding synthetic fertilizers and pesticides.
Eligibility Criteria for Exemption :
- Gross Annual Sales Limit: Producers and handlers must have gross annual sales of $5,000 or less from organic products. This threshold is calculated based on the total sales revenue generated from organic products before any expenses are deducted.
- Types of Operations Eligible for Exemption:
- Producers: Farmers or growers who produce organic agricultural products directly.
- Handlers: Entities that handle, market, or process organic products, including those who package or label these products.
- Retail Establishments: Stores that sell organic products directly to consumers without processing them or only process them at the point of sale (e.g., bakeries, restaurants).Producers,Handlers and Retail Establishments.
- Activities Exempt from Certification:
- Operations that only handle products containing less than 70% organic ingredients.
- Establishments that receive, store, and prepare organic products for shipping without further handling or processing.
- Customs brokers who only conduct customs business activities for organic products without handling them.
Non-Exempt Activities:
Importing and exporting of organic products are not exempt activities. Entities involved in these processes must be certified to ensure compliance with USDA standards.
Rights and Responsibilities of Exempt Producers
- Rights
- Ability to market products as organic without certification.
- No requirement to submit an Organic System Plan (OSP) or pay certification fees.
- Responsibilities
- Compliance with USDA organic production and handling requirements (7 CFR 205.200 – 205.299).
- Recordkeeping for at least three years, although formal records are not required for this exemption.
- Prohibition against using the USDA organic seal or claiming certified organic status.
Process for Obtaining Exemption in Organic Certification
Exempt producers under USDA organic regulations do not need to follow a formal application process to obtain exemption status; rather, they must meet specific criteria to qualify.
As mentioned above there is no formal process of organic certificaton expemtioon the what is AMS-15 – Organic Exemption Request Forms ?
The AMS-15 – Organic Exemption Request Form is a document required by the USDA’s Agricultural Marketing Service (AMS) for individuals or entities seeking to determine their eligibility for an exemption from formal organic certification. Here’s what it entails:
Purpose: The form is used to assess whether a person or business qualifies for an exemption based on their activities related to organic products. This includes producing, handling, marketing, processing, manufacturing, feeding, or importing products labeled as “organic” or “100 percent organic”
Annual Resubmission: Entities that qualify for this exemption may need to submit the form annually to maintain their exempt status, verifying that they continue to meet the eligibility requirements
Reference – https://www.ams.usda.gov/rules-regulations/organic/labeling#exemptions
here you can get all AMS 15 Forms – https://www.ams.usda.gov/resources/rp-organic-exemption