Allowable and unallowable costs

(a) OCCSP provides cost share for allowable costs that are paid by the eligible producer or handler during a program year. Allowable costs that have not been paid at the time of application are not eligible for OCCSP.

(b) Allowable costs for OCCSP include:

(1) Application fees and administrative fees for USDA organic certification;

(2) Inspection fees for USDA organic certification, including travel costs and per diem for organic inspectors;

(3) USDA organic certification costs, including fees necessary to access international markets with which AMS has equivalency agreements or arrangements;

(4) State organic program fees;

(5) User fees and sale assessments for USDA organic certification; and

(6) Postage for materials related to obtaining or renewing USDA organic certification.

(c) Any costs not included in paragraph (a) of this section are considered unallowable, including, but not limited to:

(1) Inspections due to violations of USDA organic regulations or violations of State organic program requirements;

(2) Costs related to non-USDA organic certifications;

(3) Costs related to transitional certification;

(4) Costs related to any other labeling program;

(5) Materials, supplies, and equipment;

(6) Late fees and expediting fees;

(7) Membership fees; and

(8) Consultant fees.

(d) If a single allowable cost is incurred for more than one scope, the amount will be divided by the number of applicable scopes, and the result will be entered on the application for each applicable scope.