Tart Cherries Grown in the States of Michigan, et al.; Revision of Current Procedures for Handlers To Receive Exempt Use/Diversion Credit for New Product and New Market Development Activities

This rule provides more specific criteria to help handlers take better advantage of exempt use/diversion credit activities in meeting volume regulation requirements, and to help the Cherry Industry Administrative Board (Board) better assess the validity of handler requests for such diversion credit. It also clarifies the current definitions of "new product development" and "new market development" activities eligible for diversion credit, includes "market expansion" activities in the definition of "new market development," and specifies what a handler has to do to become "involved" in an authorized activity to obtain diversion credit. This rule also specifies an industry-wide limit for market expansion activities totaling 10 million pounds per crop year. These changes were recommended by the Board, which locally administers the Federal marketing order for tart cherries grown in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin. Finally, a conforming change to the rules and regulations is made to recognize that cherry juice and juice concentrate products marketed domestically now are eligible for diversion credit. Prior to a formal rulemaking amendment completed in 2002, only exports of such products earned diversion credits.