---
kind: "section"
citation: "7 U.S.C. § 7465"
title: "7"
title_heading: "Agriculture"
number: "7465"
heading: "Required terms in order"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7465"
units:
  - "Chapter 101 — Agricultural Promotion"
  - "Subchapter IV — Kiwifruit"
---

# §7465. Required terms in order

- (a) **Budgets and plans—**
  - (1) **In general—** An [order](/usc/7/7462.md?p=8) issued under [section 7463 of this title](/usc/7/7463.md) shall provide for periodic budgets and plans in accordance with this subsection.
  - (2) **Budgets—** The [Board](/usc/7/7462.md?p=1) shall prepare and submit to the [Secretary](/usc/7/7462.md?p=14) a budget prior to the beginning of the fiscal year of the anticipated expenses and disbursements of the [Board](/usc/7/7462.md?p=1) in the administration of the [order](/usc/7/7462.md?p=8), including probable costs of [research](/usc/7/7462.md?p=13), [promotion](/usc/7/7462.md?p=12), and [consumer information](/usc/7/7462.md?p=2). A budget shall become effective on a ⅔-vote of a quorum of the [Board](/usc/7/7462.md?p=1) and approval by the [Secretary](/usc/7/7462.md?p=14).
  - (3) **Plans—** Each budget shall include a plan for [research](/usc/7/7462.md?p=13), [promotion](/usc/7/7462.md?p=12), and [consumer information](/usc/7/7462.md?p=2) regarding [kiwifruit](/usc/7/7462.md?p=6). A plan under this paragraph shall become effective on approval by the [Secretary](/usc/7/7462.md?p=14). The [Board](/usc/7/7462.md?p=1) may enter into contracts and agreements, on approval by the [Secretary](/usc/7/7462.md?p=14), for—
    - (A) the development and carrying out of the plan; and
    - (B) the payment of the cost of the plan, with funds collected pursuant to this subchapter.
- (b) **Assessments—**
  - (1) **In general—** The [order](/usc/7/7462.md?p=8) shall provide for the imposition and collection of assessments with regard to the production and importation of [kiwifruit](/usc/7/7462.md?p=6) in accordance with this subsection.
  - (2) **Rate—** The assessment rate shall be the rate that is recommended by a ⅔-vote of a quorum of the [Board](/usc/7/7462.md?p=1) and approved by the [Secretary](/usc/7/7462.md?p=14), except that the rate shall not exceed $0.10 per 7-pound tray of [kiwifruit](/usc/7/7462.md?p=6) or an equivalent rate.
  - (3) **Collection by first handlers—** Except as provided in [paragraph (5)](#b-5), the first [handler](/usc/7/7462.md?p=4) of [kiwifruit](/usc/7/7462.md?p=6) shall—
    - (A) be responsible for the collection from the [producer](/usc/7/7462.md?p=11), and payment to the [Board](/usc/7/7462.md?p=1), of assessments required under this subsection; and
    - (B) maintain a separate record of the [kiwifruit](/usc/7/7462.md?p=6) of each [producer](/usc/7/7462.md?p=11) whose [kiwifruit](/usc/7/7462.md?p=6) are so handled, including the [kiwifruit](/usc/7/7462.md?p=6) owned by the [handler](/usc/7/7462.md?p=4).
  - (4) **Importers—** The assessment on imported [kiwifruit](/usc/7/7462.md?p=6) shall be paid by the [importer](/usc/7/7462.md?p=5) to the [United States](/usc/7/7462.md?p=15) Customs Service at the time of entry into the [United States](/usc/7/7462.md?p=15) and shall be remitted to the [Board](/usc/7/7462.md?p=1).
  - (5) **Exemption from assessment—** The following [persons](/usc/7/7462.md?p=9) or activities are exempt from an assessment under this subsection:
    - (A) A [producer](/usc/7/7462.md?p=11) who produces less than 500 pounds of [kiwifruit](/usc/7/7462.md?p=6) per year.
    - (B) An [importer](/usc/7/7462.md?p=5) who imports less than 10,000 pounds of [kiwifruit](/usc/7/7462.md?p=6) per year.
    - (C) A sale of [kiwifruit](/usc/7/7462.md?p=6) made directly from the [producer](/usc/7/7462.md?p=11) to a consumer for a purpose other than resale.
    - (D) The production or importation of [kiwifruit](/usc/7/7462.md?p=6) for [processing](/usc/7/7462.md?p=10).
  - (6) **Claim of exemption—** To claim an exemption under [paragraph (5)](#b-5) for a particular year, a [person](/usc/7/7462.md?p=9) shall—
    - (A) submit an application to the [Board](/usc/7/7462.md?p=1) stating the basis for the exemption and certifying that the quantity of [kiwifruit](/usc/7/7462.md?p=6) produced, imported, or sold by the [person](/usc/7/7462.md?p=9) will not exceed any poundage limitation required for the exemption in the year; or
    - (B) be on a list of approved processors developed by the [Board](/usc/7/7462.md?p=1).
- (c) **Use of assessments—**
  - (1) **Authorized uses—** The [order](/usc/7/7462.md?p=8) shall provide that funds paid to the [Board](/usc/7/7462.md?p=1) as assessments under [subsection (b)](#b) may be used by the [Board](/usc/7/7462.md?p=1)—
    - (A) to pay for [research](/usc/7/7462.md?p=13), [promotion](/usc/7/7462.md?p=12), and [consumer information](/usc/7/7462.md?p=2) described in the budget of the [Board](/usc/7/7462.md?p=1) under [subsection (a)](#a) and for other expenses incurred by the [Board](/usc/7/7462.md?p=1) in the administration of an [order](/usc/7/7462.md?p=8);
    - (B) to pay such other expenses for the administration, maintenance, and functioning of the [Board](/usc/7/7462.md?p=1) (including any enforcement efforts for the collection of assessments) as may be authorized by the [Secretary](/usc/7/7462.md?p=14), including interest and penalties for late payments; and
    - (C) to fund a reserve established under [section 7466(d) of this title](/usc/7/7466.md?p=d).
  - (2) **Required uses—** The [order](/usc/7/7462.md?p=8) shall provide that funds paid to the [Board](/usc/7/7462.md?p=1) as assessments under [subsection (b)](#b) shall be used by the [Board](/usc/7/7462.md?p=1)—
    - (A) to pay the expenses incurred by the [Secretary](/usc/7/7462.md?p=14), including salaries and expenses of Federal Government employees, in implementing and administering the [order](/usc/7/7462.md?p=8); and
    - (B) to reimburse the [Secretary](/usc/7/7462.md?p=14) for any expenses incurred by the [Secretary](/usc/7/7462.md?p=14) in conducting referenda under this subchapter.
  - (3) **Limitation on use of assessments—** Except for the first year of operation of the [Board](/usc/7/7462.md?p=1), expenses for the administration, maintenance, and functioning of the [Board](/usc/7/7462.md?p=1) may not exceed 30 percent of the budget for a year.
- (d) **False claims—** The [order](/usc/7/7462.md?p=8) shall provide that any [promotion](/usc/7/7462.md?p=12) funded with assessments collected under [subsection (b)](#b) may not make—
  - (1) any false claims on behalf of [kiwifruit](/usc/7/7462.md?p=6); and
  - (2) any false statements with respect to the attributes or use of any product that competes with [kiwifruit](/usc/7/7462.md?p=6) for sale in commerce.
- (e) **Prohibition on use of funds—** The [order](/usc/7/7462.md?p=8) shall provide that funds collected by the [Board](/usc/7/7462.md?p=1) under this subchapter through assessments may not, in any manner, be used for the purpose of influencing legislation or governmental policy or action, except for making recommendations to the [Secretary](/usc/7/7462.md?p=14) as provided for under this subchapter.
- (f) **Books, records, and reports—**
  - (1) **Board—** The [order](/usc/7/7462.md?p=8) shall require the [Board](/usc/7/7462.md?p=1)—
    - (A) to maintain books and records with respect to the receipt and disbursement of funds received by the [Board](/usc/7/7462.md?p=1);
    - (B) to submit to the [Secretary](/usc/7/7462.md?p=14) from time to time such reports as the [Secretary](/usc/7/7462.md?p=14) may require for appropriate accounting; and
    - (C) to submit to the [Secretary](/usc/7/7462.md?p=14) at the end of each fiscal year a complete audit report by an independent auditor regarding the activities of the [Board](/usc/7/7462.md?p=1) during the fiscal year.
  - (2) **Others—** To make information and data available to the [Board](/usc/7/7462.md?p=1) and the [Secretary](/usc/7/7462.md?p=14) that is appropriate or necessary for the effectuation, administration, or enforcement of this subchapter (or any [order](/usc/7/7462.md?p=8) or regulation issued under this subchapter), the [order](/usc/7/7462.md?p=8) shall require [handlers](/usc/7/7462.md?p=4) and [importers](/usc/7/7462.md?p=5) who are responsible for the collection, payment, or remittance of assessments under [subsection (b)](#b)—
    - (A) to maintain and make available for inspection by the employees and agents of the [Board](/usc/7/7462.md?p=1) and the [Secretary](/usc/7/7462.md?p=14) such books and records as may be required by the [order](/usc/7/7462.md?p=8); and
    - (B) to file, at the times and in the manner and content prescribed by the [order](/usc/7/7462.md?p=8), reports regarding the collection, payment, or remittance of the assessments.
- (g) **Confidentiality—**
  - (1) **In general—** The [order](/usc/7/7462.md?p=8) shall require that all information obtained pursuant to [subsection (f)(2)](#f-2) be kept confidential by all officers, employees, and agents of the Department of Agriculture and of the [Board](/usc/7/7462.md?p=1). Only such information as the [Secretary](/usc/7/7462.md?p=14) considers relevant shall be disclosed to the public and only in a suit or administrative hearing, brought at the request of the [Secretary](/usc/7/7462.md?p=14) or to which the [Secretary](/usc/7/7462.md?p=14) or any officer of the [United States](/usc/7/7462.md?p=15) is a party, involving the [order](/usc/7/7462.md?p=8) with respect to which the information was furnished or acquired.
  - (2) **Limitations—** Nothing in this subsection prohibits—
    - (A) the issuance of general statements based on the reports of a number of [handlers](/usc/7/7462.md?p=4) and [importers](/usc/7/7462.md?p=5) subject to an [order](/usc/7/7462.md?p=8), if the statements do not identify the information furnished by any [person](/usc/7/7462.md?p=9); or
    - (B) the publication, by direction of the [Secretary](/usc/7/7462.md?p=14), of the name of any [person](/usc/7/7462.md?p=9) violating an [order](/usc/7/7462.md?p=8) issued under [section 7463(a) of this title](/usc/7/7463.md?p=a), together with a statement of the particular provisions of the [order](/usc/7/7462.md?p=8) violated by the [person](/usc/7/7462.md?p=9).
  - (3) **Penalty—** Any [person](/usc/7/7462.md?p=9) who willfully violates this subsection, on conviction, shall be subject to a fine of not more than $1,000 or to imprisonment for not more than 1 year, or both, and, if the [person](/usc/7/7462.md?p=9) is a member, officer, or agent of the [Board](/usc/7/7462.md?p=1) or an employee of the Department of Agriculture, shall be removed from office.
- (h) **Withholding of information—** Nothing in this subchapter authorizes the withholding of information from Congress.

## Source credit

(Pub. L. 104–127, title V, § 556, Apr. 4, 1996, 110 Stat. 1067.)

## Notes

### Statutory Notes and Related Subsidiaries

### Transfer of Functions

For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Security, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended generally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6.