(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; and
(2) A producer who operates under an approved National Organic Program (NOP) (7 CFR part 205) system plan; produces only products that are eligible to be labeled as 100 percent organic under the NOP, except as provided for in Sec. 1209.252(a)(2)(vi); and is not a split operation; and
(3) An importer who imports only products that are eligible to be labeled as 100 percent organic under the NOP (7 CFR part 205) and who is not a split operation.
(b) To claim such exemption, such persons shall apply to the Council, in the form and manner prescribed in the rules and regulations.
(c) Mushrooms produced in the United States that are exported are exempt from assessment and are subject to such safeguards as prescribed in rules and regulations to prevent improper use of this exemption.
(d) Domestic and imported mushrooms used for processing are exempt from assessment and are subject to such safeguards as prescribed in rules and regulations to prevent improper use of this exemption. [58 FR 3449, Jan. 8, 1993, as amended at 70 FR 2756, Jan. 14, 2005]