CCOF Certification Program Manual- DISINTEGRATED

SECTION TWO: THE CERTIFICATION PROCESSTHE CERTIFICATION PROCESSThis graphic will help you understand the basic certificationprocess.Certification is an annual cycle which includes an on-siteinspection in order to verify the accuracy of the OrganicSystem Plan and organic activities. Anyone seeking toreceive or maintain organic certification must comply withthe applicable organic regulations and standards. CCOF CSwill work with you to help you understand the standardsand ensure your practices meet the applicable organicregulations.APPLYING FOR CERTIFICATIONAn application packet may be obtained by contacting CCOFand requesting one be sent to you via mail or email, or youcan download it directly from www.ccof.org. Theapplication packet consists of:• CCOF Certification Program Manual (this document)• Applicable organic standards (NOP, COR, CCOFInternational Standard, etc)• Application form and Certification Contract andAgreement• OSP template for the appropriate scope/standard• Instructions & information to help complete theapplicationDue to the importance and complexity of the applicationreview, inspection, and compliance review process, CCOF CSrecommends that certification applications are submitted12 weeks prior to organic harvest, projected sales, or otherdeadlines. Operations seeking certification in less than 12weeks should consider the CCOF CS Expedited Programdescribed in Section Two below.Submitting an ApplicationBefore you submit the application to CCOF CS, you shouldassess the eligibility of your operation by reviewing theapplicable organic standard(s) and Organic System Plan(s)documents to compare your practices to the certificationrequirements.When you decide to apply for certification, send therequired application fee (see Section Three) and thecompleted Application form and Organic System Plan (OSP)including all required attachments, to CCOF CS. Please fillCCOF Certification Services Program Manual Page 5 of 27

out the OSP(s) completely, and provide as much detail aspossible. This will help the certification process moveforward in a timely manner. Be sure to keep a copy of all ofthe forms you submit to CCOF CS!If your operation is currently certified by a different certifierand you wish to transfer to CCOF CS certification, completethe CCOF CS Certification Transfer Form (available atwww.ccof.org), including all associated documents, and theapplication fee may be waived.Please note that by state law any organic operation locatedin California (including operations exempt from certificationdue to less than $5,000 organic sales) must register with theCalifornia Department of Food and Agriculture (CDFA) StateOrganic Program (SOP). Registration is a separate process,and is in addition to, certification. If you are a farmerlocated in California, contact your County AgriculturalCommissioner to begin the registration process as soon aspossible. Processors/Handlers in California should contactthe Department of Public Health. CCOF CS is required toverify compliance with the California SOP registrationrequirements.Any operation that undergoes a change of ownership thatcauses a change in management of the operation mustsubmit a new application and application fee. The ChiefCertification Officer may waive this fee if the changerequires minimal administrative activity for CCOF CS.Application Review & Cost EstimateOnce CCOF CS has received the entire application packet,including completed Application Form, Contract andAgreement, OSP, and payment, CCOF CS staff will thenreview it to determine whether the operation appears tocomply or may be able to comply with the applicableregulations. Additionally, CCOF CS will determine whetherthe operation may be exempt or excluded fromcertification, as described in Section Five, to ensure thatCCOF CS is able to perform the scope of certificationservices requested. CCOF CS may determine any specialservices due to the location or language of the operationapplying for certification.If the operation applying for certification has previouslyapplied to CCOF CS or another agency and received a Noticeof Noncompliance or Notice of Denial of Certification, theapplication must include documentation to support thecorrection of any noncompliance(s) identified in the Noticeof Noncompliance or Notice of Denial of Certification.Within a reasonable amount of time (generally fewer thanten business days after receiving the application), CCOF CSwill communicate the findings of the application review inwriting. CCOF CS may request further information in anattempt to clearly define, document and understand theinformation submitted.If CCOF CS determines that the operation does not complyand is unable to comply with applicable standards, theapplicant will be issued a Notice of Noncompliance and/orDenial of Certification per Section Four below.If CCOF CS determines that the application is substantiallycomplete and that the operation complies with or appearsto have the ability to comply with applicable regulations,the application will be accepted. A cost estimate forcertification services will be provided after the application isaccepted. The estimate is based on the informationprovided by the operation applying for certification. Theactual cost of certification may vary depending on theaccuracy of information provided. For more information oncost estimates, see Sections Two and Three below.Once the application is accepted, CCOF CS will identify anappropriate inspector and within a reasonable time period,forward all relevant information to the inspector. Generally,the inspection will be performed within 30 days followingthe assignment. The initial inspection may be delayed for upto 6 months in order to observe the land, facilities, andactivities that demonstrate compliance or capacity tocomply.Applicants may withdraw their application at any time,however the application fee is non-refundable, and anapplicant who withdraws its application is liable for thecosts of services provided up to the time of withdrawal. Anapplicant that voluntarily withdraws an application prior tothe issuance of a Notice of Noncompliance will not beissued a Notice of Noncompliance. Similarly, an applicantthat voluntarily withdraws an application prior to theissuance of a Notice of Certification Denial will not be issueda Notice of Certification Denial.ON SITE INSPECTIONSAfter acceptance of an application for certification, CCOF CSwill conduct an initial on-site inspection of each productionunit, facility, and site that produces or handles organicproducts and that is included in an operation for whichcertification is requested. Each year after, an on-siteinspection will be conducted for the purpose of determiningwhether the certification of the operation should continue.The CCOF CS annual organic inspection cycle is:• CCOF CS assigns an inspector whose training andexperience matches the operation’s activities.CCOF Certification Services Program Manual Page 6 of 27

• The inspector reviews the operation’s certificationfile.• The inspector contacts the operation to make anappointment for the inspection and to review anypreliminary questions concerning the operation.• The inspector travels to the operation to conductthe inspection and verify the operation’scompliance or capability to comply with thestandards and applicable requirements.• The inspector conducts an exit interview at the endof the inspection.• The inspector completes the inspection report andsubmits it to CCOF CS to make the certificationdecision.• CCOF CS Certification Specialists review theinspection report and issue a certification decision.SchedulingEach year, a CCOF CS inspector will contact the certifiedoperation to schedule the inspection. CCOF CS expectsclients to make a substantial effort to meet the inspector’sschedule. CCOF CS schedules inspections in an effort tominimize cost and provide timely service. Penalties may beapplied where a client is non-responsive to an inspector’sattempts to schedule an inspection (see Section Threebelow).All on-site inspections must be conducted at a time whenland, facilities, and activities that demonstrate theoperation’s compliance with applicable organic regulationsand standards can be observed (except during additionalon-site inspections, such as unannounced inspections). Ifnecessary, the inspection may be delayed for up to sixmonths to ensure the inspection is conducted at such atime. If the time between two regular inspections is morethan twelve months, future inspections may be conductedin a shorter time frame to ensure that operations have oneannual inspection per calendar year.Compliance VerificationThe on-site inspection is conducted in order to verify theoperation’s compliance or capability to comply with theapplicable standards. Inspectors will verify if theinformation included in the OSP accurately reflects thepractices used or planned to be used. Also, information isverified to determine that prohibited substances have notbeen and are not being applied to the operation. Inspectorsmust be granted complete access to the production and/orhandling operation, including non-certified productionareas, structures, and documentation associated with nonorganicproduction.CCOF CS reserves the right to require additionalinformation, including the collection and testing of soil,water, waste, seeds, plant tissue, and plant, animal, andprocessed products samples. At the time of the inspection,the inspector shall provide the operation’s authorizedrepresentative with a receipt for any samples taken by theinspector. There is no charge to the inspector for thesamples taken. CCOF CS may also take photographs of anoperation during on-site inspections and/or surveillanceevents.Client ParticipationAll on-site inspections (other than unannouncedinspections) must be conducted when an authorizedrepresentative of the operation who is knowledgeableabout the operation is present. Failure to complete anannual inspection is cause for Notice of Noncomplianceand/or Notice of Proposed Suspension.CCOF CS clients must ensure that there is ample time forthe inspection. The duration of an inspection will vary byoperation and from inspection to inspection. The inspectorwill need to view all documents that form the client’s audittrail, and the client must have complete input, harvest,production and sales records for no less than the five yearsprior available for inspection, including all receipts forinputs, contracted services, and equipment rental.Exit InterviewAt the end of the inspection, the CCOF inspector willconduct an exit interview with an authorized representativeof the operation who is knowledgeable about the inspectedoperation, to confirm the accuracy and completeness ofinspection observations and information gathered duringthe onsite inspection. The inspector must also address theneed for any additional information as well as any issues ofconcern. The Exit Interview is not the final certificationdecision, and additional information or points ofnoncompliance may be issued later by CCOF CS during thereview and decision making process.Inspection ReportFollowing the inspection, the inspector will provide CCOF CSwith a copy of the on-site inspection report. The reportsummarizes the operation’s organic system plan andpractices and evaluates them for compliance with organicstandards. Each report includes a list of all points of concernand potential noncompliance found by the inspector. Alloperators will be provided access to an electronic copy oftheir on-site inspection report and any test results by theinspector or CCOF CS. Printed copies of any document areavailable by contacting CCOF CS. Inspectors are required toCCOF Certification Services Program Manual Page 7 of 27

submit reports to CCOF CS within a timely manner,generally 15 business days from the date of the inspection.If a client is concerned about the date by which a report willbe completed, they should discuss their concerns first withthe inspector, and then with their Service Specialistidentified in CCOF correspondence.Choice of InspectorCCOF CS reserves the right to make all inspectionassignments and the right to use subcontractors forinspection as necessary. Clients may not influence thechoice of inspector or contact inspectors directly to solicitinspection assignments. Operators have the right to beinformed about the identity of the inspector before theinspection visit, and may raise objections based on conflictsof interest or other reasons by submitting the objections, inwriting, to CCOF CS, who will rule whether the reasons areaccepted and whether or not to reassign the inspection.Additional/ Unannounced InspectionsCCOF CS may conduct additional on-site inspections of anyclient to determine compliance with the applicable organicproduction and handling regulations and standards.Additional inspections may be announced or unannouncedat the discretion of the CCOF CS or as required by theaccreditation authorities, the USDA Administrator or StateOrganic Program's Governing State Official. Clients are notcharged fees for unannounced inspections. Applicants andclients must allow access to records by authorizedrepresentatives of the USDA Secretary, of the state OrganicProgram’s Governing State Official, of CCOF CS, or of otherprivate accreditation bodies during normal business hoursfor review and duplication to determine compliance withthe applicable regulations.Canadian Organic RegimeFor operators certified under the Canadian Organic Regime(COR), additional requirements for inspection apply. Theserequirements are detailed in the CCOF COR ComplianceManual.CERTIFICATION REVIEW AND DECISIONThe organic inspector does not have the final say aboutcertification. The role of the inspector is to provideinformation so that CCOF CS staff can make a decisionabout whether or not to grant or continue certification.Within a reasonable time after completion of the on-siteinspection, generally no more than 90 days, a qualifiedCCOF CS reviewer will evaluate the on-site inspectionreport, the results of any analyses for substancesconducted, and any additional information requested fromor supplied by the client.Granting Certification to New ApplicantIf CCOF CS determines that the OSP and all procedures andactivities of the applicant’s operation are in compliancewith applicable organic production and handlingregulations, and that the applicant is able to conductoperations in accordance with the OSP, CCOF CS will grantcertification and provide a certificate to the client. Thegranting of certification may include requirements for thecorrection of minor noncompliance(s) within a specifiedtime period as a condition of continued certification. If anapplicant is not able to meet the standards, CCOF CS willissue a Noncompliance followed by a Denial of Certification.Annual Continuation of Certification (Renewal)Once certified, an operation’s certification continues ineffect until surrendered by the operation, or untilsuspended or revoked by CCOF CS, the State OrganicProgram's Governing State Official, the USDA Administrator,or other governing official. However, In order to maintaincertification, an operation must annually renewcertification.To continue certification, operations certified to anyprogram must pay the annual certification fees, either bymail on online at www.ccof.org, by January 1 of each year.Operations certified to the NOP standard must submit aContinuation of Certification Contract in addition to theannual fee. The Continuation of Certification Contractrequires the following information to be submitted to CCOFCS:A) As applicable, updates on the correction of anyopen Noncompliances previously issued to theoperation by CCOF CSB) As applicable, updates to the Organic System Plan(OSP), detailing any deviations from, changes to,modifications to, or other amendments made to theprevious year’s OSP, and any additions or deletionsintended to be undertaken in the coming yearOnce CCOF CS has received annual fee payment, and thecompleted Continuation of Certification Contract for clientscertified to the NOP, and we have verified that theoperation appears to be in compliance with all applicablestandards, CCOF CS will notify the client that thecertification renewal is complete. Once the renewal iscomplete, CCOF CS will, within a reasonable time, arrangeand conduct the annual on-site inspection. If the renewal isnot completed by the due date, CCOF CS will charge a lateCCOF Certification Services Program Manual Page 8 of 27

fee for each Notice of Noncompliance or ProposedSuspension issued (see Section Three below).Ongoing Certification CycleThe certification cycle of renewal, inspection, review anddecision continue on annually until the certification issurrendered, suspended or revoked.If CCOF CS has reason to believe, based on review of the onsiteinspection report and the current OSP, that a client iscompliant with applicable regulations and standards, CCOFCS will notify the operation of their continued certificationand provide an updated organic certificate. The notificationof continued certification may include reminders to theoperator intended to help the operation stay in continuedcompliance with standards.If CCOF CS determines that the information provided to theinspector or in the OSP is not sufficient to make acertification decision, CCOF CS may request, by phone,email or mail, that the client provide additional informationby a certain due date. If that information is adequatelyprovided, CCOF CS will notify the operation of theircontinued certificate and provide an updated organicCertificate. If the client does not respond to this request bythe due date, and CCOF CS is forced to issue a Notice ofNoncompliance, CCOF CS will bill a late fee per SectionThree below.If CCOF CS has reason to believe, based on review of the onsiteinspection report and the current OSP, that the Client isnot complying with applicable regulations and standards, orif the Client fails to provide requested information within aspecified time period, CCOF CS may issue a notice ofNoncompliance.Surrender of CertificationA client may withdraw from the CCOF CS certificationprogram through written or verbal notification of surrenderat any time. Only an authorized representative of theoperation may surrender the certification to CCOF CS.Upon surrender, the client must cease all claims to CCOFcertification and to the CCOF name and seal and destroy orreturn all certificates, labeling, and marketing materialcontaining reference of CCOF. Clients are liable for the costsof all CCOF services provided up to the point of withdrawal.Events Beyond Client’s ControlWhen CCOF learns that a catastrophic event beyond theclient’s control has occurred that makes the client unable tocontact CCOF, such as death or natural disaster, CCOF CSreserves the right to cease certification activities for up tosix months. If contact cannot be made with a client whoseprincipal operator has died or the operation has beenclosed and it is common knowledge that production orprocessing has ceased, CCOF CS will cease providingcertification services.ORGANIC CERTIFICATEThe CCOF CS organic certificate specifies, at minimum, the:A) Name and mailing address of the clientB) Effective date of certification and period of validity(if applicable)C) Scope of certification, such as Crops, Livestock,Handling, Wild crop, etc.D) Standard(s) to which the operation is certifiedE) Name, address, website and telephone number ofCCOF CS.CCOF CS may re-issue a certificate when any of the aboveinformation, or the contact information of CCOF CS, haschanged.Certificates that are lost, mutilated, or stolen may bereplaced upon request. CCOF CS can also issue a duplicatecertificate for the purpose of display when requested. Allchanges, corrections, or additions to the certificate must berequested in writing.Applicablity of CertificationThe operation and its parcels, products, livestock andservices, listed on the CCOF organic certificate and ClientProfiel have only been approved by CCOF for compliancewith the specific organic standard as listed. Other local,state or federal labeling regulations may apply to productssold by this company and it is the responsibility of thecertified operation and/or the company that is identified onproduct labels to make sure that information and claims onthe labels are in compliance with all applicable regulationsand are truthful.RUSH, EXPEDITED AND EXTENDED CERTIFICATIONSERVICESCCOF CS makes every effort to meet the customer serviceneeds of all operations, including the timely review ofinspections and changes to the OSP. However, werecognize that some operations may require rush services inorder to meet deadlines. Therefore, CCOF CS offers threeservices designed to speed up the certification processwhen needed. Fees for each service are described in SectionThree below. None of these services guarantee certification.CCOF Certification Services Program Manual Page 9 of 27

Certification is dependent upon compliance with theapplicable standards. These services are intended toprovide a faster decision, not guarantee approval.Rush ServicesRush services are available for clients who need quickreview of an OSP update that does not require an onsiteinspection, such as a request to use a new input material, anew label, or the purchase of ingredients from a newsupplier. For an additional fee, CCOF CS will deliver you aresponse to the request within either 2 or 5 days. The RushReview Request form including details is available atwww.ccof.org.Expedited ServicesExpedited services are available to reduce the timeframefor conducting an inspection of a new operation or newaddition to an operation, and for the review of thesubsequent inspection report and final decision notification.A process that can take 60-90 days on average may bereduced to under two weeks. Specific information aboutexpedited timelines and fees is available on the ExpeditedServices Form available at www.ccof.org and included in allapplication packages sent to applicants by CCOF.Extended ServicesClients in CCOF CS’s top fee category, as described inSection Three below, are automatically enrolled in CCOFCS’s Extended Services Program, which is designed to meetthe unique needs of larger organic businesses. CCOF CSclients who are not in the top fee category may elect toenroll in the Extended Services Program for an additionalfee. The Extended Services Program includes a singledesignated representative, credits towards Rush andExpedited services, faster turnaround time for documentand inspection review, and other benefits. All clientsenrolled in the Extended Services Program will be provideda notice detailing specific deliverables from CCOF CS. Theseservices are subject to change based on client need andCCOF capacity.The Extended Services Program currently includes, but isnot limited to:• Dedicated client service representative to act as asingle point of contact and oversee the certificationcycle. Dedicated personnel will meet withappropriate organizational contacts regularly toidentify plans, needs, and concerns and to ensuretimely provision of service at all levels.• Annual CCOF senior level personal communicationregarding service needs and business plans.• Agreed percentage of client submissions will bereviewed within a set number of days (typically 75%within 7 days).• Use of CCOF Rush services at a reduced rate.• Review of all inspection reports within 60 days ofinspection.• Credit towards CCOF’s Expedited services for up toone new facility or additional acreage annually atno additional charge.• Free access to CCOF’s Supplier Management portalfor 5 years upon launch.• Webinar training for use of MyCCOF.• Annual training of employees on organicrequirements, international standards, labelingrules or other issues as requested and appropriate,excluding any specific assistance regardingidentified barriers to certification or operationspecificcompliance issues.CHANGES TO CERTIFICATIONAll clients are required to establish, implement, andmaintain an Organic System Plan (OSP). The OSP is a livingdocument that must be updated any time practicesregarding organic activities change or are to be changed.The OSP is central to maintaining certification with CCOF CS.Certified operations are responsible for ensuring that theOSP is current and accurately reflects the organic practicesof the operation.Updates to the OSP should be submitted to CCOF CS at anytime during the year and must be approved prior toimplementation. OSP updates should be submitted:A) With the submission of the Continuation ofCertification Contract;B) At any time during the year for changes such as newinput materials are considered for use or newingredients are sourced;C) At inspection if only minor changes are made.Clients must immediately notify CCOF CS concerning any:A) Application, including drift, of a prohibitedsubstance to any field, production unit, site, facility,livestock, or product that is part of the organicoperation.B) Change in the operation or any portion of theoperation that may affect its compliance.Adding Acreage, Livestock, Products, Services, FacilitiesCCOF Certification Services Program Manual Page 10 of 27

If an operation wants to add new acreage, groups oflivestock, products (including new labels), services orfacilities to the existing certification, the client mustcomplete the relevant section of the OSP and submit toCCOF CS for review. Some additions may be completed witha review of paperwork only, while others will require anonsite inspection. CCOF CS may charge a fee per SectionThree below. All additions must be submitted to CCOF CS,reviewed and approved before any products grown orprocessed from the additions may be sold as organic.Clients should contact CCOF CS staff to discuss whatpaperwork is needed and if an inspection is required assoon as possible to ensure that the new areas of productionare adequately covered by certification.The addition of new organic acreage or a production facilitywill require an onsite inspection. To avoid additional fees,additional acreage or facility documentation should besubmitted to CCOF CS at least 90 days before the annualinspection. The on-site inspection of new acreage or afacility must occur after the OSP updated has been receivedby CCOF CS. Inspections of acreage or facilities for whichthe OSP update has not yet been submitted will not berecognized and an additional inspection will be required.Requests to add acreage or facilities submitted at inspectionmay not be considered or may require additionalinspections.Extending Scope of CertificationTo extend the scope of certification by adding an entirelynew type of production to an operation’s certification willgenerally require an updated OSP and an inspection, alongwith an additional fee. For example, a client certified fororganic crop production that wishes to add processing tothe certification will be required to submit the relevantadditional pages of the OSP and undergo an inspection afterthe application has been approved.If a client has open Noncompliances for reasons not relatedto the organic integrity of products, such as the nonpaymentof fees, CCOF CS may use discretion in decidingwhether to extend the scope of certification. CCOF CS willnot approve an extension to the scope of certification of aclient who has open Noncompliance(s) related tocompromised organic integrity unless the change isrequired to resolve or correct the Noncompliance(s).CCOF NAMES AND SEALSCCOF Names and acronyms that may be used on productpackaging or in marketing materials include: CCOFCertification Services, CCOF, and California Certified OrganicFarmers.The CCOF seal may be used in any color or combination ofcolors but may not be modified in other ways. Clients usingthe CCOF seal may use (or have access to) various graphicformats, stickers, twist ties and other products offered byCCOF CS at www.ccof.org.Seals: CCOF CCOF ClassicClients who are certified Transitional may contact CCOFabout the use of a Transitional seal.All labels used on packaging must be included in the OSPand pre-approved by CCOF CS, preferably prior to printing.Clients may also use the additional seals of the standards towhich they are certified (USDA, COR, etc) so long as they doin compliance with applicable requirements and the labelsare approved by CCOF CS.Clients must only use the CCOF name and seal and otherlogos and/or seals authorized by CCOF in accordance withCCOF standards and/or policies and must cease all use ofCCOF’s name and seal upon notice by CCOF. Any use ofCCOF’s name or seal, without the express consent of CCOFis strictly prohibited and constitutes infringement of CCOF’srights. CCOF shall be entitled to its reasonable attorney’sfees and costs incurred in bringing any civil action,arbitration or mediation to enforce its rights in its name orseal.SECTION THREE: FEESCCOF is committed to maintaining stable certification feesand being completely transparent about the costs ofcertification. In general, there are two significant fees peryear: the annual Certification Fee and the Inspection Fee.However, depending on the complexity and activities ofyour operation, you may be billed additional fees forservices such as export verification or the use of multipleproduction facilities.We encourage you to review this section carefully todetermine all fees that may be incurred by your operationso that you can budget for your certification costsappropriately. To estimate the cost of certification, addtogether the application fee (new applicants only),certification fee, and estimated inspection fee. Additionalfees, such as Global Market Access or Storage Facility fees,may also apply.CCOF Certification Services Program Manual Page 11 of 27

Applicants and clients may contact CCOF CS to discuss thecosts of certification. A formal cost estimate will beprovided to new applicants upon acceptance of theapplication by CCOF CS. Fees may vary from year to year.GENERAL INFORMATIONCCOF CS charges additional fees for service in order toefficiently allocate work effort to client demand and reducecosts to clients who do not need additional services. Not allclients seek additional services, thus CCOF CS is able toreduce the cost of certification to those clients who do notneed additional fees.Payment of FeesAll fees are to be made payable to CCOF CertificationServices, LLC. With your payment, please include a memo orinvoice, and your client code. Payments may also besubmitted online at: www.ccof.org/payment.Payment PlansIf you are unable to pay your fees in full, CCOF CS will workwith you to implement a payment plan. Clients whoseannual certification fee is over $300 may arrange to makequarterly payments instead of annual payments. Pleasebegin by completing the Payment Plan form available atwww.ccof.org or contact CCOF Accounting Department todiscuss payment plans.Refunds and AdjustmentsAll fees paid to CCOF CS are non-refundable. Only the ChiefCertification Officer has the authority to adjust, waive orotherwise modify fees billed. Any requests for feeadjustments or waivers should be sent to the ChiefCertification Officer. See the Fee Reduction, Waiver &Deferral section beloCOMMON FEES QUICK REFERENCEPlease see specified section of this manual for details. This table is an overview only and does not include all fees that maybe applicable.Fee: Amount: Frequency: Applies to:Application $275 One time All applicantsVaries.Annual CertificationBilled on a sliding scale Annually All applicants & clientsInspectionVaries.Billed per hourAnnuallyAll applicants & clientsGlobal Market Access Program $125 per market Annually Clients exporting to specific marketsInternational Standard Program $3,500 AnnuallyClients exporting to Switzerland or toEU from outside the US.Storage Facilities $50 per facility Annually Clients using exempt storage facilitiesProduction Facilities $200 AnnuallyClients using additional productionfacilitiesPrivate Label$250 for 5 UPC’s & 50per after 5AnnuallyClients packing in private labelsAdd Acreage $50 & up Per instance Clients adding acreageAdd Livestock, Product or Service $50 Per instanceClients adding livestock, products orservicesAdd Process or Co-packer $200 Per instance Clients adding a facility or equipmentLate/no response $75 Per instanceClients who do not respond torequests by deadlineImport/Export Documents $75 Per instanceClients requesting export or importdocumentsRush Review Varies Per instanceClients who need OSP updatesreviewed quicklyExpedited program Varies Per instance Clients who need inspections quicklyCCOF Certification Services Program Manual Page 12 of 27

FEES THAT APPLY TO ALL CLIENTSApplication Fee (one time)There is a one-time, non-refundable $275 Application Feedue when the application is submitted. This fee covers theexpense of reviewing the application, and is requiredwhether the application is accepted or denied. Applicationsreceived by CCOF CS without the fee will not be processed orreviewed. If an operation is currently certified by anothercertifier and wishes to transfer to CCOF CS, this fee may bewaived. If an operation voluntarily withdraws fromcertification and then re-applies within six months ofwithdrawal qualifies for a reduced re-application fee of $100.Inspection Fee (recurring)There is an annual fee each year for the cost of the onsiteinspection. This fee will vary from year to year. The cost forinspections is billed on a time and materials basis uponcompletion of the inspection. Total inspection costs varyaccording to the operation’s size, complexity, and inspectoravailability. Inspections are billed at $60 per hour. Traveltime is billed at $42.50 per hour and expenses includemileage, food, lodging, etc.CCOF CS clients are responsible for all incurred inspectioncosts from the point CCOF CS assigns the inspector. Thisincludes preparation, planning, and any purchased tickets ortravel expenses incurred. Clients wishing to eliminateinspection expenses must withdraw from certification inwriting upon first contact from the inspector.CCOF CS is committed to assigning and executing inspectionsin the most efficient manner possible. CCOF CS assignsinspectors to operations according to the inspector’squalifications and in order to minimize travel costs and savetime. Cooperation with inspection assignments is necessaryin order for inspections to be scheduled efficiently. If a clientfails to comply with an inspection date set according to theinspector’s schedule, additional time and travel charges mayaccrue. Clients who withdraw after the inspection is assignedmay be billed for any expenses incurred.If an inspection is cancelled by the operation with less than48 hours notice, CCOF CS will charge for time and expensesincurred plus a $50 penalty. Additionally, at the secondrequest to schedule an inspection, the client has five workingdays to respond or else CCOF CS may bill a $50 penalty.this non-refundable Certification Fee before CCOF CS willcomplete the review of the initial onsite inspection report orissue a certificate. Regardless of the time of year when theapplication is received and the certification fee is paid, thenext certification fee will be due on January 1 of thefollowing year.New applicants who receive a certification decision betweenOctober 1 and December 31 and pay a full Certification feeare considered “Fourth Quarter Clients” and will be billed areduced fee for the next year of service. Clients whosecertification decision is received before October 1 areresponsible for payment of the full fee both in the first yearand in all subsequent years.Applicants for certification are required to provide areasonable estimate of annual Organic Production Value onwhich the first annual certification fee will be based. Newapplicants must pay fees according to estimated value oforganic and transitional production. Applicants locatedoutside of the United States are subject to a minimum fee of$1,200 per year.Applicants who withdraw from certification after review areliable for 50% of their first year annual fee or $100 minimum,whichever is greater. Applicants who withdraw afterinspection but before review are only liable for inspectioncosts billed.Annual Certification Fee for Continuing Clients (recurring)After the first year in the certification program, all clients arebilled an annual certification fee that is due on January 1 ofeach year. Clients who do not surrender certification within45 days of their renewal date are liable for prorated feesfrom their renewal date up to the date of their withdrawal.All clients are billed the annual certification fee on a slidingscale based on the Client's annual Organic Production Value(OPV) as described in the Certification Fee Schedule below,except Retail Stores. Continuing Clients pay fees based onthe Organic Production Value reported for the previous year.It is the client’s responsibility to report any changes to thisnumber using the Certification Fee Schedule. No refunds aregiven for overpayment. If the amount due wasunderreported, the client may be billed.Annual Certification Fee for First-Year Clients (one time)Once the application has been accepted, the CertificationFee will be invoiced. All applicants for certification must payCCOF Certification Services Program Manual Page 13 of 27

Certification Fee ScheduleCCOF Certification Services Fee Schedule (all amounts in US dollars)Organic Production Value (OPV)FeeAt Least Not More Than Crop/Livestock Handler/Processor$0 $10,000 $20010,000 20,000 27520,001 50,000 35050,001 100,000 525 $600100,001 200,000 600 650200,001 300,000 725 725300,001 400,000 875 875400,001 500,000 1,050 1,050500,001 600,000 1,500 1,500600,001 700,000 1,700 1,700700,001 1,000,000 2,200 2,2001,000,001 1,500,000 3,300 3,3001,500,001 2,000,000 3,850 3,8502,000,001 2,500,000 4,400 4,4002,500,001 3,000,000 4,950 4,9503,000,001 3,500,000 5,500 5,5003,500,001 4,000,000 6,050 6,0504,000,001 5,500,000 7,150 7,1505,500,001 10,000,000 9,900 9,90010,000,001 15,000,000 17,000 17,00015,000,001 150,000,000 25,000 25,000Greater than 150,000,000 35,000 35,000$350 Minimum fee for mixed organic and non-organic (all types, all crops).$525 Minimum fee for livestock operations with greater than 10 animals.$1,200 Minimum fee for clients outside of the 50 United States.$35,000 Maximum feeOrganic Production ValueEvidence of Organic Production Value (OPV), including salesrecords and/or production capacity, must be available forreview at the annual certification inspection. CCOF CSreserves the right to adjust the certification fee based oninformation gathered at the inspection. All organicproduction and sales information is held strictly confidentialexcept that CCOF CS make this information available to theUSDA Secretary or applicable State Organic Program'sGoverning State Official in order to carry out its obligationsunder the USDA NOP.Evidence of OPV includes, but is not limited to:A) Sales recordsB) Income tax revenue statement from most currentyear (Schedule F)C) Acreage multiplied by per acre yield and crop value(may be based on county agricultural commissionerreports)D) Other third party records such as a broker, salesagent, or cooperative.All organic production must be reported, even if not sold asorganic. Some portion of organic production not sold asCCOF Certification Services Program Manual Page 14 of 27

“organic” may be exempt from fees. Clients must submit arequest in writing for such an exemption to the ChiefCertification Officer, who may grant such a request for up to$3,000 in fees.CCOF CS reserves the right to request a compliance audit bya Certified Public Accountant at the client's expense.Calculating the Organic Production Value (OPV) forHandlers/ProcessorsHandlers/processors may deduct the cost of organic productpurchased from their OPV. To find the continuation ofcertification fee on the fee table that follows, clients mustfirst collect the following information:A= Total value of certified organic production/sales/servicessuch as brokers, contract processing or handlingB= Certified organic purchased product price. This is productpurchased, not produced, by the client.C= Service fees charged by CCOF CS certified co- processorsA-B-C = Organic Production Value subject to annualcertification fee.Retailer FeesA retailer wishing to certify private labels will be considereda handler and charged the applicable fees as shown in theCertification Fee Schedule above. For retailers not usingprivate labels and not certified as a handler, the annualcertification fee is $200 per location plus a square footagefee as described below:Square Feet per Store< 7,500 Square Feet $7507,501 to 18,000 Square Feet $1,500>18,000 Square Feet $2,500Annual Fee per StoreIf only certain departments of the store are being certified(deli, produce, bakery, etc), the fee is based on only thesquare footage of those certified departments. The ChiefCertification Officer has the sole discretion to negotiate theapplicable square footage fees. Where retailers operatecentralized chains with more than 5 stores, CCOF CS mayprovide flat rate inspection pricing to stabilize costs andfacilitate planning by both CCOF CS and the retailer.Restaurant FeesFor restaurants with more than one location, a certificate isissued to the certified legal entity, with an addendum listingall locations. Where restaurants operate centralized chainswith more than 5 stores, CCOF CS may provide flat rateinspection pricing to stabilize costs and facilitate planning byboth CCOF CS and the retailer.Number of RestaurantLocations1 $1,2502-5 $5,0006-10 $10,00011-15 $15,00016-20 $20,00021-25 $25,000>25 $30,000AnnualCertification FeeContract Partners ProgramCCOF CS producers that contract all organic production to asingle certified operation are eligible for a reduction inannual fees. This is applicable to co-ops, large scalepartnerships, and regional buyers. The primary contractingparty must provide CCOF CS with streamlined collection offees, inspection coordination or other services in order toqualify. The Chief Certification Officer may negotiate thecontract partner’s fee reduction.ANNUAL FEES FOR SPECIFIC SERVICES (RECURRING)CCOF CS charges additional annual fees for services in orderto allocate costs according to demand. If applicants or clientshave questions regarding these fees, please contact a CCOFCS representative for clarification.Storage FacilitiesClients who use non-certified storage facilities that do notopen, re-label or repack crops are eligible to submit theStorage Facility Inspection Waiver. CCOF CS charges anannual fee of $50 for each storage facility. A Storage FacilityInspection Waiver or fee is not required for storage facilitiesthat store sealed products in final retail packaging.Production FacilitiesClients who use production facilities that are notindependently certified (such as co-processors/co-packers,or post-harvest handling facilities used by crop/livestockproducers) will be billed annually $200 per facility orproduction type. Handlers will only be billed for facilities inaddition to their main production facility. Examples include(but are not limited to) certification of:CCOF Certification Services Program Manual Page 15 of 27

A) A processor that uses one facility for productmanufacturing and another for packagingB) A huller, packer, sorting line, or cooler in conjunctionwith a farmC) Milk barns in conjunction with dairy farmsD) Parcels or livestock in conjunction with a processingplant or handling operation.The Chief Certification Officer may reduce the fee foradditional production for operations that sell less than$20,000 of product per year, or for operations that add avery small number of animals to an existing farm.Private Label Name & Seal UseClients who label products for a Private Label marketer thatis not certified by CCOF CS, which use the CCOF CS nameand/or seal, will be billed a Private Label fee of $250 for upto five universal price codes (UPCs) and $50 for eachadditional UPC beyond the first five. CCOF CS may reduce oradjust this fee where more than one UPC is submitted forapproval at the same time or production runs are extremelysmall.Global Market Access ProgramIn addition to the annual certification fees described above,to be enrolled in the CCOF CS Global Market Access program,CCOF CS will bill $125 per export verification servicerequested for EU, Japan and/or Canada. This fee is billedeach year upon continuation of certification. Please see theGlobal Market Access Program Manual for additionalinformation about this program.International Standard ProgramIn addition to the annual certification fees described above,the annual fee to be enrolled in the CCOF CS InternationalStandard program is $3,500 per year, billed uponcontinuation of certification. Please see the InternationalStandard Program Manual for more information about thisprogram.FEES FOR SPECIFIC SERVICES (ONE TIME FEES BILLEDPER ACTIVITY)CCOF CS charges additional fees for services in order toallocate costs according to demand. The following is a list ofthe most common services requested and the associatedfees. Please contact the Chief Certification Officer foradditional information for services not listed here.Adding AcreageFor additional acreage applications the following fees apply:• $50 if submitted more than 90 days prior to harvest• $150 if submitted less than 90 days prior to harvest• $225 if submitted at inspection (paperwork must becompleted and available to inspector)Adding Livestock, Products or ServicesCCOF CS charges a $50 administrative fee for each newgroup of animals, or each product or service added to aclient’s OSP. Label changes for existing products will bereviewed for no additional fee.Additional Processing Facility, Equipment or Co-PackerCCOF CS charges a $200 fee for each additional handling orco-packing facility or equipment line added mid-year to anoperation already entered into the certification program.CCOF CS applies this fee to post-harvest handling operationsfor farms as well as to handlers.Additional Scope of CertificationCCOF CS charges a $200 fee to add a scope (Crops, Livestock,Handling, etc) to an existing certification. For example, a cropproducer adding livestock may be charged $200 plus anyother additional fees. The Chief Certification Officer mayreduce the fee for additional production for operations thatsell less than $20,000 of product per year, or for operationsthat add a very small number of animals to an existing farm.Rush ReviewOperations who need a response regarding an OSP update(that does not require an inspection) more quickly than CCOFCS’s regular turnaround time may request a Rush Review.Types of OSP updates that do not require an inspection andare eligible for Rush Review include new labels, new inputsor new suppliers. The fee is $100 for a 2 day response and$50 for a 5 day response. See description in Section Twoabove.Expedited ReviewOperations that need an expedited inspection andcertification decision may enroll in the Expedited reviewprogram. The fee is $1,475 for new applications (includes the$275 new application fee), $1,200 to add a new facility to anexisting operation (includes the $200 new facility fee), or$750 to add new acreage to an existing operation (includesthe additional acreage fee0. Inspection fees still apply. SeeSection Two above for a description of this program.Extended Services ProgramOperations that are not in the CCOF CS maximum annual feecategory may enroll in the Extended Services ProgramCCOF Certification Services Program Manual Page 16 of 27

described in Section Two for an additional annual fee of$10,000.Late/No Response FeesIf CCOF CS requests information or a response from a clientby a specific due date, and the client does not submit theinformation or documents needed, causing CCOF CS to haveto issue a Notice of Noncompliance or Proposed Suspension/Revocation, CCOF CS will charge a $75 late/no response fee.Such situations include, but are not limited to, a client’sfailure to submit the continuation of certification contract bythe due date or a client’s failure to respond to requests forinformation or Notices of Noncompliance by the due date.CCOF CS will notify clients in applicable documents thatfailure to respond by the due date will result in late fees.Import Certificates and Export DocumentationCCOF CS charges a $75 administration fee for each documentissued to facilitate exports or imports. This includes importcertificates required by foreign countries as well as exportdocumentation that may be required by the US. This fee ischarged for each document (letter, attestation or certificate).CCOF CS may bundle documents (i.e. the same product tothe same purchasing agent, issued by CCOF CS at one time)at a reduced rate of $50 per document upon the approval ofthe Chief Certification Officer.Reproduction Services Hourly RatesCCOF CS charges $60 per hour, with a minimum charge forone hour, plus the cost of materials, to copy informationrelated to applicants and clients to any format (this includeselectronic and hard copy files). CCOF CS can provide anestimate for each job at the request of the client. CCOF CSdoes not charge for the routine reproduction of certificates,client profiles, or other file information intended for the soleuse of clients.Technical and Other ServicesCCOF CS may charge additional fees for other customizedservices, such as sampling or additional verification, on a perquote basis. CCOF CS reserves the right to bill clients andother entities at $75-$125 per hour for technical services.Complaint, Investigation & Adverse Action FeesApplicants and clients will be responsible for reimbursingCCOF CS for all costs incurred by CCOF CS as a result ofadverse actions, investigations, and legal issues involving theapplicant or client. Adverse actions may include but are notlimited to: actions described in Section Four, includingsanctions, adverse actions, complaints, appeals, mediation,litigation, or enforcement actions. The costs that theapplicant or client must reimburse include but are notlimited to: the costs of conducting investigations, conductingadditional inspections, conducting discovery, and respondingto subpoenas or other discovery requests. Costs will be billedat the technical services rate above. CCOF CS does not bill forpesticide residue testing.If CCOF CS prevails in a mediation, dispute, proceeding, orother contested action against the applicant, certifiedoperation or client, the applicant, certified operation orclient will be responsible for paying all costs incurred byCCOF CS, including CCOF CS's reasonable attorneys' fees,expenses and costs.Appeal FeeTo prevent spurious appeals and to help offset the cost ofadjudication proceedings, an operation appealing a decisionmade under any non-NOP CCOF CS certification program(including, but not limited to: COR, International Standard),must submit a fee of $500 with the appeal. There is no fee toappeal a decision under the NOP certification program.NON-PAYMENT OF FEESUnderpayment or non-payment of any fees constitutes aviolation of CCOF CS policy and applicable standards and isgrounds for a Notice of Noncompliance and adverse action.All fees and invoices are due upon receipt. CCOF CS considerspayment delinquent after 30 days from the date of theinvoice. If a Client has a problem making payment within 30days, or questions the amount due, they can put the late feeand adverse action process on hold by submitting a paymentplan or complaint in writing to the CCOF CS AccountingDepartment within 30 days of the invoice date. The ChiefCertification Officer and the Accounting Department willreview the request and respond to the client within 14working days from the date received. After 30 days, theAccounting Department will send a notice to all outstandingaccounts and late fees will be added based on an annual rateof 18 percent per year (minimum late fee of $1).After 90 days, the Accounting Department will refer allclients with no written payment plan or complaint to theChief Certification Officer for issuance of a Notice ofNoncompliance. Certification services cannot be provided toapplicants or clients whose fees are more than 60 days pastdue.After approximately 105 days of nonpayment, CCOF CS willissue a Notice of Proposed Suspension. After approximately135 days, the CCOF CS will issue a Notice of Suspension andthe account will be sent to collections.CCOF Certification Services Program Manual Page 17 of 27

Because processing payment Noncompliances is costly toCCOF CS and takes away from the ability to provide serviceto other clients, all clients who receive a Notice ofNoncompliance and subsequent Notice of ProposedSuspension for non-payment will be charged an additional$75 per notice to cover administrative and other costs.Clients who wish to surrender their certification (withdraw)must notify CCOF CS in accordance with Section Two. Clientswho no longer wish to be certified, but who do not notifyCCOF CS that they wish to withdraw, will continue to beinvoiced fees. Clients that leave CCOF CS and do not payoutstanding invoices will have balances sent to collections.Collection PolicyClients are liable for all default payments and collection costsincluding reasonable attorneys' fees. CCOF CS will assign theaccount to a collection agency after 150 days from the dateof invoice.If a client pays the outstanding balance after the account issent to collection, CCOF CS will charge a collection penalty of35% of the amount of the invoice. CCOF CS charges thispenalty to offset the cost of sending the account tocollection.FEE REDUCTIONS, WAIVERS AND DEFERRALSThe Chief Certification Officer may grant waivers anddeferrals of $500 or less for any CCOF CS invoice (except inthe case of organic crops or products not sold as “organic”).Other deductions may include fee adjustments to ensuremarket competitiveness of the CCOF CS certificationprogram, such as use of the CCOF seal and/or transfer ofcertification to CCOF CS from another certification agency.The CCOF CS Management Committee must approve awaiver or reduction that exceeds $3,500. Requests for awaiver or deferral must be made in writing and submitted tothe Accounting Department, before the payment due date. Awaiver of Annual Fees will only be considered in cases ofcatastrophe or hardship. A waiver for crop failure can only beused once in any three-year period.Operations Currently Certified by Other CertifiersIf an operation is currently certified by another certifier andwishes to transfer to CCOF CS, the one-time Application feemay be waived. See the CCOF Certification Transfer form formore details. For operations who wish to transfer their USDANOP certification to CCOF and have retail labels that identifytheir existing certification agent and would face significantcosts or hardships due to the requirement to modify thecertifier name on their existing label stock or else dispose oflabels, CCOF may offer the following:• Up to 100% reduction in Certification fees for thefirst year of certification with CCOF• Up to 75% reduction in Certification fees for thesecond year of certification with CCOF• Up to 25% reduction in Certification fees for thethird year of certification with CCOF.Operations would still be responsible for inspection, Rushprogram, Expedited program or other optional fees. TheChief Certification Officer may negotiate certification feereductions to allow operations to maintain dual certificationwhile they use up retail labels listing the previous certifier.Operations granted fee reductions under this program mustagree that all new labels will carry the “Certified Organic byCCOF” statement and that all labels will identify CCOF as thecertifier within a specified period of time.Research, Charitable, & Education OperationsOperations that are exclusively used for public research andeducation may be exempt from paying the annualcertification fee upon request. These operations are notexempt from inspection fees.Volunteer ContributionsVolunteers of CCOF Inc. may be compensated with up to$150 in fee waivers. The volunteer contribution program isprovided for at the discretion of the Executive Director ofCCOF Inc.SECTION FOUR: ENFORCEMENT,ADVERSE ACTION, SANCTIONS & DUEPROCESSENFORCEMENTCCOF CS enjoys the reputation of a premier certificationagency because it has created and maintained a high-qualitycertification program to ensure that end consumers aredelivered products of the highest organic integrity. CCOF CStakes all allegations of violation of organic standards veryseriously and thoroughly investigates all substantive writtenreports of violation. However, no rules or laws canstrengthen the program more than the commitment of theoperators of the CCOF CS certified businesses to follow theproduction standards with care and honesty.CCOF CS handles issues related to violations of standardswith the highest priority. The marketplace acceptance andsuccess of third-party certification programs stronglyCCOF Certification Services Program Manual Page 18 of 27

depends on the consumers’ confidence in the authenticityand integrity underlying certified product label claims. Tothis end, CCOF CS implements quality certification servicesthat ensure compliance prior to granting certification andmonitors continued compliance of certified operations.CCOF CS’s enforcement procedures occur in various contextsand include the ability to take adverse action againstnoncompliant operations to protect consumer confidence inthe organic certification process. When an operation is foundto be out of compliance with the standards, CCOF CS willapply the certification sanctions described below.Enforcement procedures also include measures to ensuredue process to protect the rights of certification applicantsand certified operators by providing an opportunity torespond to noncompliance findings prior to adverse actiontaken by CCOF CS. This balance of adverse action and dueprocess ensures the certification process remains strict butfair.Complaints and InvestigationsCCOF CS investigates all complaints relating to organicintegrity or allegations of noncompliance to applicablestandards in a timely and efficient manner. CCOF CS mayreceive complaints about suspected violations of standardsfrom consumers, inspectors, farmers, distributors, brokers,government officials, or any other interested party. CCOF CSis committed to thoroughly investigating complaints that aresubmitted in writing and provide evidence that supports theallegations. When a complaint is received CCOF CS will takeappropriate action, document the action(s) taken and itseffectiveness, and when the complaint is resolved, adocumented resolution will be made. CCOF CS will notify theappropriate oversight authorities of all complianceproceedings and actions taken that result from a formalinvestigation. If an operation refuses to cooperate in aninvestigation, CCOF CS may deem this sufficient cause forissuance of a Notice of Noncompliance and potentiallyfurther adverse action.Monitoring the MarketplaceCCOF CS routinely surveys the retail marketplace to monitoruse of the CCOF name and seal and to evaluate product labelclaims for conformance with organic standards and the CCOFName and Seal Use Notification. If such monitoring finds thatthe CCOF name, seal or logo is being misused or thatproduct labels are noncompliant, CCOF CS will takeappropriate action, including issuing a Notice ofNoncompliance to the operations or reporting the finding tothe USDA Administrator, State Organic Program or otherauthority.Testing of Organic Products and InputsOperations seeking certification with CCOF CS must make allorganic products and inputs available for examination,sampling or testing by CCOF CS, or any governing official withregulatory authority associated with the applicable organicstandards.CCOF CS, or other governing officials, may require preharvestor postharvest testing of any input or product to besold, labeled, or represented as organic under the standardwhen there is reason to believe that the input or product hascome into contact with a prohibited substance or has beenproduced using excluded methods, such as geneticallyengineered organisms. Such tests must be conducted byappropriately designated representatives for CCOF CS atCCOF CS’s own expense or governing officials at the official'sexpense.If test results indicate a product or input contains pesticideresidues or environmental contaminants that exceed theFDA, EPA or other regulatory tolerances, CCOF CS willpromptly report such data to the Federal health agency andcomparable international authorities whose regulatorytolerance or action level has been exceeded.Under the USDA NOP, when residue testing detectsprohibited substances at levels above 5 percent of the EPAtolerance level, or the actual FDA action level, theagricultural product must not be sold, labeled or representedas organically produced. CCOF CS, the State organicprogram’s governing State official, or the USDAAdministrator may conduct an investigation of the certifiedoperation to determine the cause of the prohibitedsubstance’s presence.ADVERSE ACTIONS AND SANCTIONSIt is the responsibility of operations seeking organiccertification to understand and comply with all of theapplicable standards for certification. If operations do notunderstand the requirements for certification, they areencouraged to contact CCOF CS for clarification.Notices of Noncompliance, Proposed Suspension orRevocation, and Denial, Suspension and Revocationconcerning certification to the USDA are copied to the USDAAdministrator. Notices of Proposed Suspension orRevocation and notices of Denial concerning certification tothe USDA NOP for operations in California are copied to theCDFA State Organic Program administrator. The CanadianCCOF Certification Services Program Manual Page 19 of 27

Food Inspection Agency is notified of Cancellations orSuspensions of certification to the Canadian Organic Regimestandards.NoncompliancesWhen an inspection, review, or investigation of a client byCCOF CS reveals that a client is not in compliance with thestandards, CCOF CS will issue a written Notice ofNoncompliance. The Notice of Noncompliance will include:A) A description of each Noncompliance;B) The facts upon which the Notice of Noncompliance isbased; andC) The date by which the client must rebut or correcteach Noncompliance when correction is possible.Noncompliances may be issued for administrative issues,such as failure to pay invoices, failure to return theContinuation of Certification Contract, etc. Noncomplianceswill be issued for activities that are a threat to the organicintegrity of the organic product. All Noncompliances must beresolved and closed before an applicant will be grantedcertification or a client will be notified of continuingcertification. Noncompliances that are not adequatelyresolved will result in additional adverse action.Resolution of NoncomplianceA client who has been issued a Notice of Noncompliance mayresolve the Noncompliance by:A) Correcting the Noncompliance(s) as described in theNotice of Noncompliance. CCOF CS must be providedwith a description of the corrective actions takenand supporting documentation to demonstrate theeffectiveness of the corrective actions.B) Rebutting the Noncompliance(s) by submitting awritten rebuttal to CCOF CS.CCOF CS will review the information submitted documentingthe correction or rebuttal of the Noncompliance(s) todetermine if the information submitted is sufficient toresolve the issues. If necessary, CCOF CS will conduct an onsiteinspection to verify corrective actions or informationprovided in the rebuttal.If CCOF CS verifies that the correction or rebuttal is sufficientto resolve the Noncompliance(s), CCOF CS will notify theclient that the Noncompliance(s) has been resolved and thatthe operation continues certification.If CCOF CS determines that the correction or rebuttal is onlypartial or incomplete, CCOF CS will notify the operation ofthe Noncompliance issues that remain open and the date bywhich they must be addressed.If the corrective actions or rebuttal is not sufficient to resolvethe Noncompliance(s), or the client fails to respond to theNotice of Noncompliance, CCOF CS will escalate the adverseaction by either denying certification to a new applicant orproposing suspension or revocation of existing certification.An operation that has been issued a Noncompliance by CCOFCS may surrender their certification, correct theNoncompliance(s), and submit a new application to CCOF CSor another certification agency, provided that the newapplication includes a complete application, the Notice ofNoncompliance, and a description of the corrective actionstaken with supporting documentation.Denial of Certification (New Applicants)When a new applicant for certification has been issued aNotice of Noncompliance and the corrective action orrebuttal is not sufficient for the applicant to qualify forcertification, CCOF CS will provide a written Notice of Denialof Certification. If correction of a Noncompliance is notpossible, the Notice of Noncompliance and the Notice ofDenial of Certification will be combined into one notice.The Notice of Denial of Certification will state the reason(s)for denial and the applicant’s right to:A) Reapply for certification;B) Request mediation;C) File an appeal.Proposed Suspension and Proposed Revocation (Clients)When client is issued a Notice of Noncompliance andcorrection or rebuttal is unsuccessful or not completed bythe specified due date, CCOF CS will send the client a writtenNotice of Proposed Suspension or Notice of ProposedRevocation. The Proposed Suspension or Revocation may beof the entire operation or of a portion of the operation.When correction of a Noncompliance is not possible, aNotice of Noncompliance and Notice of Proposed Suspensionor Notice of Proposed Revocation may be combined in onenotification. The Notice of Proposed Suspension or Notice ofProposed Revocation will state:A) The reasons for the proposed suspension orrevocation;B) The proposed effective date of such suspension orrevocation;C) The impact of a suspension or revocation on futureeligibility for certification;D) The right to request mediation;CCOF Certification Services Program Manual Page 20 of 27

E) The right to file an appeal.Suspension and Revocation (Clients)If a client has been issued a Notice of Proposed Suspensionor Proposed Revocation and the client fails to resolve theissue through correction, rebuttal, filing of an appeal, orrequesting mediation, CCOF CS will send the client a writtenNotice of Suspension or Notice of Revocation.If a client properly requests mediation or files an appeal,CCOF CS will not issue a Notice of Suspension or Notice ofRevocation while final resolution of the appeal or mediationis pending.A client whose USDA NOP certification has been suspendedunder this section may submit a request to the USDASecretary for reinstatement of its certification. The requestmust be accompanied by evidence demonstrating correctionof each Noncompliance and Corrective Actions taken tocomply with and remain in compliance with the organicregulations and standards. The Secretary will require thatCCOF CS provide a letter of support of the reinstatementrequest, which can only be done after CCOF CS performs aninspection and review of the operation to ensure that theclient is compliant and capable of ongoing compliance. If theUSDA provides a decision to reinstate the client, then CCOFCS will reinstate certification. Clients wishing to requestreinstatement should contact CCOF CS to requestinformation about the reinstatement process and pay anyapplicable review and processing fees.A client or a person responsibly connected with an operationwhose USDA NOP certification has been revoked will beineligible to receive certification for a period of five yearsfollowing the date of such revocation, except, that, the USDASecretary may reduce or eliminate the period of ineligibility.CancellationOperations in Canada certified to the Canadian OrganicRegime will have their certification cancelled by CCOF CSrather than suspended or revoked.Willful ViolationsIf CCOF CS has reason to believe that a client has willfullyviolated any standards, CCOF CS will take the appropriateadverse action. This may include issuing a Notice of ProposedSuspension or Notice of Proposed Revocation or a combinedNotice of Noncompliance and Proposed Suspension orRevocation/ Denial.If CCOF CS suspects an operation is engaged in fraudulent orillegal activity, CCOF CS is obligated to notify the CaliforniaState Organic Program for operations located or productssold in California. The CDFA has the ability to levy fines andprosecute cases under the California Organic Foods Act andother state regulations. CCOF CS will notify the USDAAdministrator of all willful violations under that standard, towhich the following applies:MEDIATIONFalse Labeling and Misrepresentation of OrganicStatusAny operation that knowingly sells or labels aproduct as organic in the United States, except inaccordance with the organic regulations, shall besubject to a civil penalty of not more than $11,000per violation. In addition to the above penalty, CCOFCS is entitled to attorney’s fees and costs incurred inbringing any civil action, arbitration or mediation toenforce any false labeling from certified ornoncertified parties incurred using the CCOF name ormarks.False Statement(s)Any operation that makes a false statement to theUSDA NOP Secretary or a State Organic Program'sGoverning State Official shall be subject to theprovisions of section 1001 of title 18, United StatesCode.An operation may request mediation concerning a Notice ofDenial of Certification, Notice of Proposed Suspension orNotice of Proposed Revocation directly to CCOF CS in writing.CCOF CS may accept or deny the request for mediation andwill communicate the decision to accept or deny in writing. Ifthe request for mediation is denied, CCOF CS will notify theoperation of the right to request an appeal within 30 days ofthe date of the written notification of rejection of therequest for mediation.If the request for mediation is accepted by CCOF CS, suchmediation may be conducted by the appropriate stateorganic agency or other qualified mediator mutually agreedupon by the parties to the mediation. In the state ofCalifornia, mediations may be handled by the CDFA StateOrganic Program Administrator, and in accordance toprocedures established by the CDFA State Organic Program.The parties to the mediation shall have no more than 30days to reach an agreement following a mediation session. Ifmediation is unsuccessful, the operation has 30 days fromtermination of mediation to appeal the CCOF CS decision.Any agreement reached during or as a result of theCCOF Certification Services Program Manual Page 21 of 27

mediation process must be in compliance with organicregulations and standards.The USDA Secretary may review any mediated agreement forcompliance to the NOP and may reject any agreement orprovision not in compliance with the NOP.APPEALSAppeals (all programs)An operation may appeal a Notice of Denial of Certification,Notice of Proposed Suspension or Notice of ProposedRevocation. Notices of Noncompliance, Suspension,Revocation or other decisions made by CCOF CS may not beformally appealed.A decision to deny, suspend, or revoke certification willbecome final unless the decision is appealed in a timelymanner. An appeal must be filed within the time periodprovided in the notice or within 30 days from receipt of thenotice, whichever occurs later. The appeal will be considered“filed” on the date received by the appeal body (USDAAdministrator or CCOF CS, as applicable). All appeals mustinclude a copy of the adverse decision and a statement ofthe appellant’s reasons for believing that the decision wasnot proper or made in accordance with applicable programregulations, policies, or procedures.All written communications between parties involved inappeal proceedings must be sent to the recipient's place ofbusiness by a delivery service that provides dated returnreceipts. All appeals shall be reviewed, heard, and decidedby persons not involved with the decision being appealed.Appeals under the USDA Are handled differently than thoseunder other CCOF CS programs.Appeals (under USDA NOP)Appeals regarding certification to the USDA NOP will behandled in a manner consistent with the appeals process ofthe USDA NOP, which is briefly described here. A fulldescription of the appeals process can be found in the NOPregulations at 7 C.F.R. § 205.681. Where an appeal occurs ina state with a State Organic Program (SOP), that state’sappeal procedures will apply.If the USDA Administrator sustains an operation’s appeal, theoperation will be issued new or ongoing organic certification,as applicable. The act of sustaining the appeal shall not be anadverse action subject to appeal by the affected CCOF CS. Ifthe USDA Administrator denies an appeal, a formaladministrative proceeding will be initiated to deny, suspend,or revoke the certification. Such proceeding shall beconducted pursuant to the U.S. Department of Agriculture’sUniform Rules of Practice or the State Organic Program’srules of procedure.Appeals (Under other CCOF CS Certification Programs)An operation enrolled in the CCOF CS certification programfor certification to a standard other than the NOP (such asTransitional, COR, ISP, etc) may appeal a denial, proposedrevocation or suspension as described above, but the appealwill be adjudicated by the CCOF CS Ad Hoc AppealsCommittee. The CCOF CS Ad Hoc Appeals Committee shallrender a final and non-appealable decision to sustain, deny,suspend or revoke certification. Alternatively, they maysustain or deny an appeal regarding an adverse action.An operation submitting an appeal to the CCOF CS Ad HocAppeals Committee should include in their appeal, inaddition to the information described above, any relevantbackground information on the case, reasons to changeCCOF CS’s decision, and a suggested resolution to the issue.Appellants are strongly encouraged to submit completeinformation when making an appeal. Submission of newinformation after the initial appeal may delay scheduling ofthe adjudication meeting. In order to prevent spuriousappeals and to help offset the cost of adjudicationproceedings, the appellant must submit a fee with theappeal as described in Section Three.SECTION FIVE: CERTIFICATIONCATEGORIESAs described in Section One above, CCOF CS offers organiccertification to crop and livestock producers, wild cropharvesters, processor/handlers, retailers, restaurants, andtextile and personal care product manufacturers under anumber of national and private standards. A single operationmay be certified under more than one scope of certificationand to multiple standards. This section of the manualdescribes the additional categories of certification to thosedescribed in Section One.CERTIFICATION FOR EXEMPT OR EXCLUDEDOPERATIONSPrivate label marketers, retail establishments and specifichandlers, such as operations producing products with lessthan 70% organic ingredients, may be exempt or excludedfrom certification but may seek voluntary certification withCCOF CS. NOP regulations section 205.101 describes whichoperations are exempt from NOP certification. To becomecertified by CCOF CS, an exempt or excluded operation mustCCOF Certification Services Program Manual Page 22 of 27

comply with the regulations set forth in the applicablestandards.RETAIL CERTIFICATIONRetail operations with locations in countries outside the USwithout clearly applicable national standards for organicretail may be certified by the CCOF Retail Program. Pleasesee the CCOF Retail Program Manual for more informationabout the requirements. Retail operations may be certifiedto the USDA NOP. See Section Three for details about Retailcertification fees.TRANSITIONAL CERTIFICATIONOperations may be certified to the CCOF CS Transitionalstandard if the operation meets all requirements of the (NOP7CFRPart 205), except §205.202(b), which requires threeyears of no prohibited materials. A parcel may be CertifiedTransitional if it is free of prohibited materials for one year.“Transitional” certified is outside the scope of the USDANOP. Transitional products may not be labeled, sold, orrepresented using the word “organic.”CONTRACTED PRODUCTION WITH NON-CERTIFIEDFACILITIESIf an operation certified by CCOF CS contracts with a facilitythat is not independently certified (Non-Certified Facility) toprocess organic products, this non-certified facility can bepart of the certification of the CCOF CS client, so long thatCCOF CS client is responsible for the non-certified facility’spractices as follows:The non-certified facility shall not take title of the productand is precluded from marketing certified products. The rawmaterials supply and the sales must be under the control ofthe CCOF CS client.• The non-certified facility is responsible for adheringto the practices described the client's OSP and forcompliance with any conditions for certificationarising from an inspection, for maintaining organicintegrity, and for notifying the client of any changesto the OSP prior to implementing changes.• The CCOF CS client is responsible for notifying CCOFCS of all changes to the OSP and for complianceissues involving the non-certified facility.• The non-certified facility will be inspected annuallyeither during the client’s inspection or at anothertime to verify compliance with applicableregulations. The cost of this inspection is theresponsibility of the client.• The non-certified facility is subject to the sameunannounced inspection and product samplingpolicies as the client.• If the non-certified facility offers services to morethan one client, then CCOF CS reserves the right torequest that the non-certified facility becomecertified by CCOF CS or another accreditedcertification agency.PRIVATE LABELSThe CCOF name and seal may be used on private labels ofnon-CCOF certified entities provided that the product wasproduced by a CCOF client in accordance with its OSP. CCOFapproval of the private label does not constitute certificationof the private label marketer. The use of the name and seal isvalid until terminated in writing by the client or CCOF.Clients must notify CCOF CS in advance of packing anyprivate label product. The client must submit an updated totheir OSP listing all private label information and the label orpackage for the marketer entity requesting use of the CCOFname or seal. The client must evidence control over use ofthe label, USDA Seal, other national seals, and CCOF nameand/or seal. The CCOF CS client must provide completeinformation about the private label marketer entity. CCOF CSwill notify the marketer of their responsibilities underapplicable organic standards and CCOF’s ongoing rights to itsname and seal through a Name and Seal Use Notification.The private label marketer entity is authorized to use theCCOF name or seal only on products included in the Nameand Seal Use Notification.The client is responsible for fees including but not limited tofees described in Section Three. CCOF CS will invoice theclient for the private label fee, pro-rated to cover the perioduntil the client's annual renewal. The private label fee willthen be included annually as part of the invoice for thecertification fee at subsequent renewals.The private label marketer entity must comply with allapplicable organic standards, and CCOF standards andpolicies. If the private label marketer entity is determined tobe noncompliant, the client may be subject to adverseactions, pursuant to Section Four. Please contact CCOF CS formore information.CCOF Certification Services Program Manual Page 23 of 27

SECTION SIX: POLICIESThe following policies apply to all operations who seek CCOFCS certification.USE OF CONTRACTORSCCOF CS may hire inspectors on a contractual basis and usesother contract workers to work on specific projects.Whenever contract services are utilized during thecertification process, CCOF CS retains final authority andresponsibility for all certification decisions.CONFIDENTIALITY AND PUBLIC INFORMATIONCCOF CS safeguards the confidentiality of any businessrelatedinformation concerning any client, products, orsuppliers obtained during the course of certification. CCOFCS does not disclose any proprietary information to thirdparties without the client’s written consent prior to release,except to the authorized representatives of the Secretary,the applicable State Organic Program's Governing StateOfficial or other authorized representatives of accreditationagencies where necessary to implement the NOP, the StateOrganic Program, or the CCOF CS certification program.CCOF CS may disclose proprietary information as required byother laws of the United States or other countries in which itperforms certification activities, State law or other laws oflocal governments.CCOF CS also makes public upon request all certificates, andany results of laboratory analyses for residues of pesticideand other prohibited substances conducted during thecurrent and 3 preceding calendar years, unless the testing ispart of an on-going compliance investigation. Publicinformation about certified operations is made available onthe website and directories released by CCOF CS. CCOF CSroutinely makes available to the public the followinginformation about certified operations:• Business name• Mailing Address• Contact information, including phone number andwebsite• Effective date of certification• Scope of certification• Standard to which the company is certified• Organic products grown or processed• Parcel and/or facility identification• Status of certificationThis data is consistently updated on the CCOF website.EQUALITYCCOF CS offers certification without discrimination and willprovide certification services to operations that fall withinthe scope of its certification program to the extent of itsadministrative capacity to do so. CCOF CS does notdiscriminate against any person because of race, color,national origin, gender, religion, age, disability, politicalbeliefs, sexual orientation, or marital or family status.CCOF CS will not create undue financial hardship or otherconditions that discriminate, impede, or inhibit applicantsbased on their size or type of operation.CCOF CS does not certify or issue notice(s) to its applicants orclients on the basis of any of the applicant or client'smembership affiliations and/or associations to food-relatedindustries. CCOF CS does not issue notices to its applicantsor clients based on the number of previously issued noticessuch as Notices of Noncompliance, Notices of ProposedSuspension, Notices of Proposed Revocation, Notices ofSuspension, and Notices of Revocation.IMPARTIALITYCCOF CS maintains impartiality by preventing conflicts ofinterest. CCOF CS requires all persons who reviewapplications for certification, perform on-site inspections,review certification documents, evaluate qualifications forcertification, or make certification decisions, as well as allparties responsibly connected to CCOF CS, to complete anannual conflict of interest disclosure report. CCOF CS ensuresthat the decision to certify an applicant is made by a persondifferent from those who conducted the initial review ofdocuments and the on-site inspection.CCOF CS excludes any person with conflicts of interest,including contractors, from work, discussions, and decisionsin all stages of the certification process, and the monitoringof applicants and clients for all entities in which such personhas or has held a commercial interest, including animmediate family interest or the provision of consultingservices, within the 12-month period prior to the applicationfor certification.CCOF CS does not certify an operation if CCOF CS or aresponsibly connected party of CCOF CS has or has held aconflict of interest in the operation. If it is determined,within 12 months of certifying an operation, that a personparticipating in the certification process had or has a conflictof interest, CCOF CS reconsiders the application forcertification and, if necessary, performs a new on-siteinspection or refers an applicant or client to a differentCCOF Certification Services Program Manual Page 24 of 27

certification agency. All costs associated with areconsideration of application, new inspection ortransference to a new agency shall be borne by CCOF CS.CCOF CS does not permit any employee, inspector,contractor, or other personnel to accept payment, gifts, orfavors of any kind, other than fees prescribed in SectionThree from any business inspected.CCOF CS does not engage in the marketing of certifiedproducts or promotion of individual products. Applicationsare not solicited nor based on the needs of individual buyers.All inquiries about trade or consumers are directed to CCOF ,Inc. CCOF CS does not give advice or provide consultancyservices to applicants/clients or supply or design products ofthe type(s) it certifies.STANDARDS OF BEHAVIORCCOF CS attempts to provide professional, cost-effectiveservice to its clients. Both clients and CCOF CS are expectedto maintain a professional and business-appropriatestandard of behavior. Threatening or abusive languageand/or inappropriate advances of a sexual or other naturewill not be tolerated at any stage of the certification process.As the inspection and certification environment constitute aworkplace, safe workplace guidelines and statutes apply toall involved. Clients who engage in inappropriate behaviorwill be deemed to be refusing service, cannot be inspected,and may face non-compliance actions.GOVERNING LAWExcept only to the extent expressly provided herein, thisagreement shall be governed exclusively by and construedaccording to the laws of the State of California, withoutgiving effect to its body of laws pertaining to conflict of laws.CONSENT TO JURISDICTIONClient, applicant, or certified operation hereby irrevocablyconsents to the jurisdiction of the courts of the State ofCalifornia for all purposes in connection with any action orproceeding that arises out of or relates to CCOF CertificationServices’ provision of certification or any other services tothe client, applicant, or certified operation.INDEMNIFICATIONTo the fullest extent permitted by law, each Client, Applicant,and Certified Operation (hereinafter referred to as“Indemnitor”) agrees to indemnify, protect, defend withcounsel approved in writing by CCOF CS, reimburse, and holdharmless CCOF CS and its affiliates, members, directors,officers, employees, agents, and contractors (hereinafterreferred to as “Indemnitees”), and the heirs, personalrepresentatives, successors, and assigns of each of them,from and against any and all liability, loss, damages,penalties, fines, costs, expenses, attorney’s fees, claims,suits, or proceedings of every kind and description, whetherfor illness, injuries to or death of persons, for loss or damageto property, including the loss of use of the property, foreconomic loss or damages, or for any other dispute, matteror remedy, arising from acts or omissions, whether or notactively or passively negligent, by CCOF CS, its officers,employees, agents, contractors, or representatives inconnection with performance of certification and any otherservices. Indemnitees shall each be entitled to recoverreasonable attorney’s fees, costs and expenses incurred inenforcing Indemnitor’s obligations under this paragraph.To the fullest extent permitted by law, each Client, Applicant,and Certified Operation (hereinafter referred to as“Indemnitor”) agrees to indemnify, protect, defend withcounsel approved in writing by CCOF CS , reimburse, andhold harmless CCOF CS and its affiliates, members, directors,officers, employees, agents, and contractors (hereinafterreferred to as “Indemnitees”), and the heirs, personalrepresentatives, successors, and assigns of each of them,from and against any and all liability, loss, damages,penalties, fines, costs, expenses, attorney's fees, claims, suitsor proceedings of every kind and description, whether forillness, injuries to or death of persons, for loss or damage toproperty, including the loss of use of the property, foreconomic loss or damages, or for any other dispute, matteror remedy arising from an act or omission of the Indemnitor,its officers, employees, agents, contractors orrepresentatives in connection with Indemnitor’sperformance or non-performance of the requirements of theNOP or compliance or non-compliance with the CCOF CScertification program. Indemnitees shall each be entitled torecover reasonable attorney’s fees, costs and expensesincurred in enforcing Indemnitor’s obligations under thisparagraph.To the fullest extent permitted by law, each Client, Applicant,and Certified Operation (hereinafter referred to as“Indemnitor”) agrees also to indemnify, protect, defend withcounsel approved in writing by CCOF CS, reimburse, and holdharmless CCOF CS and its affiliates, members, directors,officers, employees, agents, and contractors (hereinafterreferred to as “Indemnitees”), and the heirs, personalrepresentatives, successors, and assigns of each of them,from and against any and all liability, loss, damages,CCOF Certification Services Program Manual Page 25 of 27

penalties, fines, costs, expenses, attorney's fees, claims, suitsor proceedings of every kind and description, whether forillness, injuries to or death of persons, for loss or damage toproperty, including the loss of use of the property, foreconomic loss or damages, or for any other dispute, matteror remedy arising out of an act or omission of theIndemnitor, its officers, employees, agents, contractors orrepresentatives in connection with the production, handling,processing, use, marketing or sale of products including, butwithout limitation, organic labeling claims from third parties.Indemnitees shall each be entitled to recover reasonableattorney’s fees, costs and expenses incurred in enforcingIndemnitor’s obligations under this paragraph.If the Client, Applicant or Certified Operation contracts anyportion of its Operation to a subcontractor or agent,including a Private Label Entity, the agreement to performthat work shall include full indemnification of CCOF CS asdescribed in this clause, which clause shall be incorporatedand made part of said agreement:Private Label Entity agrees to be bound as an Indemnitor tothe person contracting with Private Label Entity and CCOFCS. Further, Private Label Entity agrees to indemnify,protect, defend with counsel approved in writing by CCOFCS, reimburse, and hold harmless CCOF CF and its affiliates,members, directors, officers, employees, agents, andcontractors (hereinafter referred to as “Indemnitees”), andthe heirs, personal representatives, successors, and assignsof each of them, from and against any and all liability, loss,damages, penalties, fines, costs, expenses, attorney's fees,claims or suits, or proceedings of every kind and description,whether for illness, injuries to or death of persons, for loss ordamage to property, including the loss of use of theproperty, for economic loss or damages, or for any otherdispute, matter or remedy arising from the acts or omissionsof the Private Label Entity, the person contracting withPrivate Label Entity, and their respective officers, employees,agents, contractors, or representatives. Indemnitees shalleach be entitled to recover reasonable attorney’s fees, costsand expenses incurred in enforcing Private Label Entity’sobligations under this paragraph.LIMITATION OF LIABILITYEACH OF THE PARTIES TO THIS AGREEMENT AGREES THATTHIS IS A COMMERCIAL AGREEMENT BETWEENSOPHISTICATED BUSINESS PERSONS, AND THAT EACH OFTHE PARTIES HAVE HAD THE OPPORTUNITY TO, AND HEREBYREPRESENT AND WARRANT THAT IT ACTUALLY HAS,CONSIDERED THE RISKS AND REWARDS ASSOCIATED WITHTHE SERVICES TO BE PROVIDED BY CCOF CS HEREUNDER,AND THEREFORE HEREBY AGREES TO ALLOCATE CERTAIN OFTHE RISKS SO THAT, TO THE FULLEST EXTENT PERMITTED BYLAW, THE TOTAL AGGREGATE LIABILITY OF CCOF CS AND ITSAFFILIATES, MEMBERS, DIRECTORS, OFFICERS, EMPLOYEES,AGENTS, AND CONTRACTORS IS LIMITED TO TEN THOUSANDDOLLARS ($ 10,000) OR THE AMOUNT OF ONE YEAR'SWORTH OF CCOF CS’S FEES ACTUALLY PAID TO CCOF CS BYTHE OTHER PARTY TO THIS AGREEMENT IN THE MOSTRECENT SINGLE CALENDAR YEAR SUCH FEES WERE ACTUALLYPAID TO CCOF CS, WHICHEVER IS GREATER, FOR ANY ANDALL INJURIES, DAMAGES, CLAIMS, LOSSES, EXPENSES, COSTSOR ATTORNEY’S FEES ARISING OUT OF THIS AGREEMENTFROM ANY CAUSE OR CAUSES, INCLUDING WITHOUTLIMITATION FROM CCOF CS’S ORDINARY NEGLIGENCE(WHETHER ACTIVE OR PASSIVE), ERRORS, OMISSIONS,STRICT LIABILITY, BREACH OF CONTRACT, OR BREACH OFWARRANTY, BUT EXCLUDING GROSS NEGLIGENCE, FRAUD,WILLFUL INJURY TO THE PERSON OR PROPERTY OFANOTHER, OR VIOLATIONS OF LAW. HOWEVER, IT ISFURTHER UNDERSTOOD AND AGREED THAT THISLIMITATION OF LIABILITY CLAUSE IS NEGOTIABLE, SUCHTHAT THE CLIENT, APPLICANT, OR CERTIFIED OPERATIONCAN AGREE TO PAY ADDITIONAL CHARGES TO CCOF CS IN ANAMOUNT WHICH WILL BE DETERMINED BY MUTUALWRITTEN AGREEMENT OF THE PARTIES IN EXCHANGE FORMODIFICATION (E.G. TO INCREASE THE AMOUNT OF CCOFCS’S LIABILITY) OR ELIMINATION OF THIS LIMITATION OFLIABILITY CLAUSE. IF CLIENT, APPLICANT, OR CERTIFIEDOPERATION IS INTERESTED IN THE OPTION OF NEGOTIATINGWITH CCOF CS TO MODIFY OR ELIMINATE THIS LIMITATIONOF LIABILITY CLAUSE, IT SHOULD CONTACT CHIEFCERTIFICATION OFFICER AT 831-423-2263 PRIOR TO THECOMMENCEMENT OF CCOF CS’S SERVICES HEREUNDER.SECTION SEVEN: DEFINITIONS ANDTERMINOLOGYAgricultural Product- Any agricultural commodity or product,whether raw or processed, including any commodity orproduct derived from livestock that is marketed for humanconsumption.Applicant for Certification (Applicant) - Any person applyingto CCOF CS to obtain certification.Certificate- A written document from CCOF evidencing thatan operation has been certified to the specified standard.Claims- Oral, written, implied, or symbolic representations,statements, advertising, or other forms of communicationCCOF Certification Services Program Manual Page 26 of 27

presented to the public or buyers of agricultural productsthat relate to the organic certification process or the term,“100 percent organic,” “organic,” or “made with organic(specified ingredients or food group),” or in the case ofagricultural products containing less than 70 percent organicingredients, the term “organic” on the ingredient panel.Client- An operation, or portion of such operation, thatapplies for certification or is certified by CCOF CS as utilizinga system of organic production or handling as described byorganic regulations and standards. Clients may also be anyother operation that seeks CCOF CS services of any kind.Handler- A person who engages in the business of handlingagricultural products.Handling- To sell, process, or package agricultural products,except such term shall not include the sale, transportation,or delivery of crops or livestock by the producer thereof to ahandler.Label- A display of written, printed, or graphic material onthe immediate container of an agricultural product, or anysuch material affixed to any agricultural product, or affixedto a bulk container containing an agricultural product, exceptfor package liners or a display of written, printed, or graphicmaterial which contains only information about the weightof the product.Livestock- Any cattle, sheep, goat, swine, poultry, or equineanimals used for food or in the production of food, fiber,feed, or other agricultural-based consumer products; wild ordomesticated game; or other non-plant life, except suchterm shall not include aquatic animals or bees for theproduction of food, fiber, or other agricultural basedconsumer products.Operation- A crop or livestock production, wild-cropharvesting or handling operation, or portion of suchoperation.Organic System Plan (OSP) - A plan of management of anorganic production or handling operation that has beenagreed to by the producer or handler and CCOF CS, whichincludes written plans concerning all aspects of agriculturalproduction or handling.Processing- Cooking, baking, curing, heating, drying, mixing,grinding, churning, separating, extracting, slaughtering,cutting, fermenting, distilling, eviscerating, preserving,dehydrating, freezing, chilling or otherwise manufacturing,and includes the packaging, canning, jarring, or otherwiseenclosing food in a container.Producer- A person who engages in the business of growingor producing food, fiber, feed, and other agricultural-basedconsumer products.Records- Any information in written, visual, or electronicform that documents the activities undertaken by aproducer, handler, or CCOF CS to comply with organicregulations and standards.Responsibly Connected- Any person who is a partner,officer, director, holder, manager, or owner of 10 percent ormore of the voting stock of an applicant, a client, a recipientof other certification, or a recipient of accreditation.Retail Food Establishment- An operation that handlesorganically-produced agricultural products but does notprocess them; including: a restaurant, delicatessen, bakery,grocery store, or any retail outlet with an in-store, eat-in, orcarry-out service, or processed or prepared raw and readyto-eat-food.Wild Crop Harvesters- Operations that harvest any plant orportion of a plant that is not maintained under cultivation orother agricultural management.CCOF Certification Services Program Manual Page 27 of 27