Repeal Chapter 4-43, HAR and Adopt Chapter 4-143, HAR
NOTE: This summary presents
the major changes proposed to the standards for coffee, and includes reasons
for the proposed revisions and comments received from industry. Due
to a reorganization, the Marketing Division no longer exists and the standards
for coffee fall under the responsibility of the Quality Assurance Division.
Chapter 4-43, HAR is to be repealed and the standards for coffee is to
be placed in Chapter 4-143.
The item numbers below are cross
referenced and circled in the proposed Chapter 4-143, HAR (attached).
These numbers are identical to those specified on previously distributed
summaries but include additional comments, and new proposed changes are
indicated by an alphabetic character immediately following the item number.
ITEM
1. Complete repeal of Chapter 4-43,
Subtitle 4, Marketing Division; and adoption of Chapter 4-143, Subtitle
7, Quality Assurance Division, to reflect the reorganization of the division
in September, 1996.
2. Rescind proposal to repeal Section 4-43-5 Standards for grades of parchment coffee. Although there has not been any requests for certification of parchment coffee for many years, comments have been received that it should be left in the standards for potential future use. It will be updated in the future when we can get more feedback and input from producers and millers.
3. Add new section, 4-143-10 Coffee Quality Verification Program (CQVP), a program where millers, upon approval of the department, may self-certify their own green coffee following requirements set under this section. In late 1996, when the Coffee Certification Law was being drawn up, several millers said they would support the mandatory certification law if it included a self-certification program. The self-certification program will allow approved millers to self-certify for grade, use a special stamp on their label, and issue a modified certificate. See also items 14 and 71.
4. Subsection 4-143-1 (a) Labeling requirements. Remove the term "for sale" from labeling requirements for green coffee being transported out of the area of production. Companies that ship green coffee to another location that they own will not be exempt from grade labeling as they will need to certify their coffee.
5. Subsection 4-143-1(a). Add term "or lower" to "exact grade" to permit lower grade to be labeled on a higher grade product so as not to penalize anyone from over-grading.
6. Correct Measurement Standards Branch declaration of identity reference from "section 4-90-5" which is incorrect, to section 4-93-2.
7. Subsection 4-143-1(d). Relax requirement for use of a period (.) when abbreviating grade terms
8. Subsection 4-143-1(e). Add term "distribution" to requirements of this subsection to include more than sales only.
9. Subsection 4-143-1(f). Leave term "parchment" in since not deleting parchment grade.
10. Subsection 4-143-1(h). Prohibit fanciful terms that may imply a non-existing grade from being used.
11. Add subsection 4-143-1(i). To require tags (labels) to be attached to container in such a manner to prevent tampering, for positive lot identification, traceability, and to assure buyers of the origin of the coffee they buy. The tags will be imprinted with the department’s "Officially Sampled" stamp as samples are taken for certification.
There were some comments about the extra work and cost involved, but there have been more favorable responses. This is a critical part of the certification program and will help to prevent switching and fraud, assure buyers of the origin of the green coffee, and the cost should not be too great considering the high value of Hawaii coffee.
12. Section 4-143-2. Remove term "service" since inspection in many cases will be mandatory.
13. Subsection 4-143-2(a). Refer to cherry coffee and parchment coffee inspection as voluntary since green coffee certification becomes mandatory.
Comment from one island that the cherry grades apply only to Kona and we should include the other islands. Also, the cherry grade standards should be updated because as is, it’s rather cursory.
Another comment received is that cherry coffee grades are not needed, not used, and should be repealed.
We have not received any requests for this type of certification for many years. There could be some use for this grade when disputes arise between producer and wet miller. However, at this time we do not propose to make any substantive changes and will consider modifying it at a later date when we can get more feedback and input from producers and millers.
14. Subsection 4-143-2(b). States the requirements for mandatory certification for grade, origin, or both grade and origin. Lists the exemptions from certification:
Coffee packed in less than wholesale
containers. "Wholesale container" was originally proposed to be defined
as more than 5 pounds, (from more than 3 pounds) so that green coffee packed
in containers up to this container size (less than wholesale quantities)
would be exempt, such as for mail order operations. Comments were
received that 10 pounds was better, and comments were received that this
would not be a problem, so the definition of wholesale quantity was revised
to "more than 10 pounds".
Coffee not to be shipped out of
the geographic region of production as defined in section 4-143-3.
Most growers / millers / roasters feel they can control the green coffee
roasted / packed within their respective regions, and focus should be on
product going outside the geographic regions.
Offgrade coffee provided they are properly marked; and
Green coffee processed in approved mills under the department’s Coffee Quality Verification Program (CQVP).
In addition to this self-certification program, an origin only certification is also included. The origin only certification is similar to the self-certification program in that the applicant certifies the origin and is responsible for the grading of the product.
15. Subsection 4-143-2(c). Add requirement that millers are to report the volume of all exempt green coffee milled, to the department on a standardized form on a monthly basis (400 pounds minimum). This will allow the department to check on appropriate certification requests and exemptions.
16. Subsection 4-143-2(d). Require that cherry or parchment that is shipped out of the area of production be accompanied with a signed statement attesting to its origin. Also, require certification of origin at the dry mill where processed to the green bean stage, to prevent any circumventing of the mandatory certification law, since it applies to green coffee.
Comment was received that we should require the cherry or parchment coffee to be certified before shipment out of the area, but the law specifies green coffee beans Therefore, we have included these requirements.
17. Subsections 4-143-2(e) and (f). Place the responsibility for certification on the owner of the green coffee since there are many different handlers of green coffee, but permit other parties to apply for certification (the owner will be responsible for certification; the applicant will be responsible for payment of certification fees).
18. Subsection 4-143-2(g). Permit requests for origin only certification upon approval of the department. This program was initiated when the department could not keep up with the large amount of certifications required, and certification turn-around time began to get prolonged. There are only two coffee grading laboratories with proper equipment in the state, and these are very limited in staff due to budget restrictions and the seasonal nature of coffee production.
19. Subsection 4-143-2(h). Add term "milling" since this term is more commonly used.
20. Subsection 4-143-2(i). Require that applicant sign and file a department approved application form attesting to the origin of the product. One of the major additions to the certification program requested by the coffee industry was certification of origin.
Certification will be tied in with the Federal certification of origin Trademarks, which the department has obtained for Hawaii (state), Kona (district) and the islands of Kauai, Maui, Molokai, and Oahu. One of the requirements for use of the trademark is that the product be certified.
21. Subsection 4-143-2(j). Require that containers be accessible for sampling and delete the "placed to readily disclose its quality and condition" requirement as samples will be taken randomly and containers should be sealed to prevent tampering.
22. Subsection 4-143-2(k). Specify that voluntary certification may deviate from the normal inspection requirements when approved. Applicant may just want to certify for only size or color, etc.
23. Subsection 4-143-2(l). Clarify withdrawal of inspection request and charges. Previous statement seemed confusing.
24. Subsection 4-143-2(n). Delete requirement that the certificate "shall be delivered" since the department should not be required to do this.
25. Subsection 4-143-2(o).
Update the inspection fee to reflect the current costs. The last
increase was in 1992. While most persons are against any fee increase,
note:
Sub-section 147-7(c), HRS states "The fees shall be on a uniform basis
and and amount reasonably necessary to cover the cost of inspection and
the administration of this part:..." The current fees do not cover the
current costs of the coffee inspection and certification program.
Other similar branch inspection fee increases will also be proposed in
the coming months.
The proposed fee increase is based on the average full-time Branch Agricultural Commodities Marketing Specialists (ACMS) salaries with fringe benefits and estimated expenses, and does not include any administrative support costs. Similar rate increases are being proposed for other Branch programs.
The hourly inspection fees for Federal inspections of similar nature, conducted by branch ACMS inspectors under Federal-State agreements, are currently $43.00 for fresh fruits and vegetables, $43 for processed products ($47 effective 11/19/00), and $48.40 for eggs.
26. Subsection 4-143-2(p). Allow the department to withhold inspection if payment is not received to assure timely payment. When part-time ACA help is used, it is critical to keep the special fund up to date, to assure that salary payments are made on time.
27. Section 4-143-2. Delete the subsection on assessment for "each check that is not honored", since this is covered under Chapter 40-35.5, Hawaii Revised Statutes.
28. Subsection 4-143-2(q). Clarify appeal inspection requirements and set a minimum of $150.00 since more than one inspector may be involved in the inspection, and a search for previous notes and worksheets will be involved.
28a. Subsection 4-143-2(r). Proposed new subsection stating that inspection certificates and related documents shall be made confidential has been removed due to our deputy attorney general’s concern over public record issues under Chapter 92F, HRS. Confidentiality is to be maintained under the definitions of "applicant" and "certificate", following similar federal definitions that maintain confidentiality [based on Title 7, Section 51.2 of the Code of Federal Regulations (CFR)]. Since inspection and certification are mandatory, individual production figures will become known to the department and must be kept confidential due to individual disclosure laws as well.
29. Section 4-143-3 Definitions. Throughout the definitions, plural terms have been changed to singular terms which is the preferred method in rules drafting. Add definition for "Applicant" to specify person responsible for payment of inspection fees.
30. Clarify definition of "broken or cut" to include "damage by" to allow some tolerance. Otherwise, any tiny break or cut could be scored as a defect.
30a. Add definition of "department" as suggested by deputy attorney general. Definition is identical to one in chapter 147-1, HRS.
31. Add definition of "dry mill", "dry miller","mill", and "miller" to differentiate this type of processing.
32. Add terms "green coffee" as referenced throughout the standards for simplification. Also, delete phrase "and most of the silver skin has been removed" from the definition since this is not necessarily true.
33. Add definition of Hamakua Coffee and Kau Coffee. Request by Hamakua and Kau producers for grades for their respective districts. We will add a definition of these coffees such as "Hamakua coffee" or "Kau coffee" to include districts or boundaries and requiring a minimum Prime grade when using these terms, similar to Kauai coffee, Kona coffee, Maui coffee, Molokai coffee, and Oahu coffee. We will not include location grades other than islands as this can get out of hand. For instance we cannot have Hilo Fancy Coffee, Mountain View Fancy Coffee, Kohala Fancy Coffee grades, etc. as this could be never-ending.
Owners will be able to grade their coffee as "Hawaii Fancy...Kau Coffee" or "Hawaii Fancy...Hamakua Coffee", etc.
33a. Add to all definitions of the different geographic regions - "green coffee which is processed from cherry coffee grown in the geographic region ...."; to succinctly clarify "grown" since the cherry coffee is grown and the green coffee is processed from cherry coffee. Cherry coffee was not mentioned in the previous definition.
34. Add definition of "Hawaii coffee" to meet minimum of Hawaii No. 3 grade so that offgrade coffee is not used with this term as desired by most of industry.
35. Define term "hull" separately from "husk" because they are different. Hull (endocarp) refers to the parchment while husk (pericarp) refers to the cherry.
35a. Change "inspection certificate" to "certificate" to make it more encompassing (see item 36 below).
36. Add "origin" to type of "certificate" and allow approved individual in an approved CQVP mill to issue a certificate.
37. Delete "interested party" as this term is clarified under the definitions of "applicant" and "certificate".
38. Add definition of "Maui coffee" and "Molokai coffee" and the respective grades exactly as the other grades except for location, as requested by the major growers on these islands. Oahu growers have not expressed a desire for grades at this time, but we do include a definition of "Oahu coffee".
NOTE: We received requests to add a definition of "estate coffee". There have been mixed comments both positive and negative and we prefer not to define it. Any definition would be very difficult to enforce or verify and we are already concentrating on origin. The Kona Coffee Council has their own definition and usage requirements, and some companies define it on their own private labels and in advertising.
39. Change definition of "mother bean" by deleting "light in weight" since they are not necessarily light in weight inasmuch as they are large in size.
39a. Add definition of "offgrade" for clarification. This definition was taken from Section 147-1, HRS.
40. Add to definition of "partly sour bean" - "with a faint odor" for clarification and to distinguish it from a sour bean.
NOTE: scoring of defects are further elaborated in Sub section 4-143-6(j).
41. Add definition of "partly stinker bean" to include this type of defect in scoring.
42. Delete "cherries" from term "pods or cherries" as it defines itself.
43. Delete "floaters" from term "quakers or floaters" as floater is defined separately for cherry coffee and are not "floated" in green coffee grading. Quakers in green coffee is further defined to involve roasting as this defect shall be scored upon confirmation after roasting.
43a. Define "quality" as recommended by deputy attorney general. Definition was taken from USDA fresh products branch standards.
44. Add to definition of "silver skin", "dried seed coat of the bean" for further clarification.
44a. Add definition of "stick" and "stone" as suggested by deputy attorney general. Definitions were taken from the dictionary since international coffee standards only define these terms by length and size when scored as a defect.
45. Add definition of "stinker beans" as a defect in addition to "sour" to include other undesirable odors. Definition based on international coffee standards definitions.
Also add definition of "partly stinker bean" for scoring purposes.
45a. Add definition of "supervisor" for reference in the standards.
46. Add definitions of "Type I" and "Type II beans". Reference changed from spelled numerals to the much more commonly used Roman numerals. Reference to types were removed from the grade sections and mentioned in size requirements as this is the only area of difference.
47. Add "for the variety" to definition of "uniformly good green color" to accommodate the different varieties being grown statewide that have color differences.
48. Add definition of "wet mill" and "wet miller" to distinguish from dry mill and dry miller.
49. Add "processing, re-packing" to definition of "wholesale quantities" to include all types of processing; increase amount from 3 to 10 pounds [see item 14]; and removed exemption of containers sold or transported to oneself, etc. since exemptions are listed separately.
50. Proposal to add Subsection 4-143-4(e) to restrict cherry coffee grades to Kona area only was rescinded. This restriction was added to the section title. Cherry coffee standards were originally developed for the Kona area. Cherry coffee grades for other varieties and other geographic areas need to be developed, including coffee intended for mechanical harvesting.
51. Section 4-143-5. Parchment coffee grades will not be deleted as explained in item 2 above.
52. Section 4-143-6. Standards for grades of green coffee - restructure this section to make it easier to read. Delete type beans here and add to the definition subsection. For easier reference, most requirements are listed in each grade rather than referred to in a different subsection.
53. Moisture maximum increased from 12 to 12.5% to accommodate growers / millers in the wetter areas. The Speciality Coffee Association of America (SCAA) and the New York Coffee Exchange permit 13%. Some growers preferred 13%, some preferred to leave it at 12%; the 12.5% is a compromise that should not affect the final quality.
Another comment was that we should lower the minimum from 9 to 8-1/2 %. Comment was that it would be okay if that was allowed by SCAA - it was not, so the 9 % minimum was not changed. Also, see item 60.
Moisture requirements are the same for all grades and are listed under each grade’s requirements.
54. Change defect allowance for Extra Fancy, Fancy, and No. 1 grades to defects per 300 grams instead of per pound (454 grams) since grading and counting of defects are very tedious and time consuming. Three hundred grams was selected as this is the amount used in the international coffee standards laboratory sample, and is sufficient to give accurate results.
NOTE: The amount of defects permitted for these grades were increased by a small amount percent-wise since a smaller sample size will lead to slightly increased sampling error. Also, because these grades have minimum size requirements, size was considered when assigning the number of defects permitted. See attached Table 1 (legal size sheet) for comparisons.
Comment was received that the allowance
for Hawaii Fancy grade should be 14 imperfections per three hundred grams
instead of 12 as originally proposed. Note that if this were done,
the %age defects allowed (based on average bean size) would be higher for
Fancy than for No. 1:
Ex fancy at 8/300gms Fancy at 14/300
gms No. 1 at 18/300gms
(~ 0.59 to 2.97%) (~0.92 to
4.60%) (~0.88 to 4.4%)
If we increase imperfections from
12 to 14 for Fancy, we should increase No. 1 from 18 to 20 imperfections
per 300 gms.(compare %): No. 1 at 20/300gms
We don’t agree with this increase
(~0.98 to 4.9%)
Propose to keep defects at 8 / 12 / 18 as originally submitted.
Another comment received was that the allowance for defects in Ex Fancy, Fancy, No. 1, and Select grades should by percentage - 3, 4, 4.4, and 5 % respectively. This would be workable but we would need to set further limitation for full sour or black beans at around 1% or less. This allowance would be very similar to the 8 / 12 / 18 which is preferred. Weighing a small amount of beans to determine percentage would require a very sensitive and accurate gram scale, and calculating their percentages would not be as objective and exact as by count. Unless the industry were willing to allow slightly more defects for each grade, we do not consider this a reasonable alternative.
After the above explanations, there were no further objections to our proposals.
55. Increase the allowance for other type beans in Extra Fancy, Fancy, and No. 1 grades from 50 count per pound to five percent by weight, since this will not affect the overall quality of the lot. No negative comments were received.
56. Permit larger size to be optionally specified for type I beans in Fancy and No. 1 grades and mention that they must meet requirements of the specified size. Minimum size requirements are still in effect for Ex. Fancy, Fancy, and No. 1 grades.
57. Add new "Select" grade to fill in the large defect gap between No. 1 and Prime grades. The No. 1 grade permits 18 defects per 300 grams (equivalent to about 0.88% to 4.4% defects, depending on full imperfection equivalents) while the Prime grade permits 15% defects.
Comment that there should be a maximum limit on full sour or full black bean defects in the Select, Prime and No. 3 grades. Answer was that we will limit these defects to not more than 2% in Select, 5% in Prime and 5% in No. 3 grades.
Comment to change color, roasting quality and aroma in Select grade and flavor to be same as Prime and No. 3. This was done, so that this grade can be used for estate-type coffee. Because of the few defects allowed, quality should still be high.
Delete "of one type" in earlier draft which was an error.
58. Permit optional size classification for Select and Prime grades, as requested by producers. If size is specified state that it must meet that size requirement and also meet the tolerance for other type beans.
59. Subsection 4-143-6(h). Delete term "containers in which the beans are obviously of a quality materially different than that in the ..." as it is the applicant's responsibility to grade the lot and offer it for inspection. Inspectors will draw samples at random from each lot. Every sack will be sampled in a lot up to ten sacks in size; thereafter a minimum of 10% of the sacks will be sampled.
60. Subsection 4-143-6(i). Allow a tolerance of plus or minus 0.3 percentage points for moisture. We have found that the moisture test instruments commonly used in the industry such as Steinlite, Sinar, Dickey-John, and Burrows have an accuracy range within 0.2 and 0.3%. Repeated checks of the same sample often give slightly different readings.. These instruments test whole beans, are reasonable in price, and give rapid results. The forced air oven method, which is recommended by the American Organization of Analytical Chemists (AOAC) is used to confirm readings but is expensive, cumbersome and very time consuming.
61. Delete subsection relating to other type beans [previously subsection 4-43-6(a)] as this is covered in each grade (now 5% tolerance).
62. Subsection 4-143-6(j). Revise the way defects are scored so that they would be scored either as one full bean imperfection or one fifth of a full bean imperfection. Defects were defined more objectively as some beans would be scored a little tighter as full beans (including stinker and moldy) and some would be scored a little looser as one fifth of a full bean. Net results should be very similar. Grading will be simpler as there would be no need to separate defects into five or six categories and add up different fractions such as 3/5 plus 1/4 plus 2/3 plus 1/5, etc., leading to less chance for error and increased speed in counting defects.
63. Add moldy and stinker beans to the list of defects as they can seriously affect the quality of the green beans and are fairly common.
64. Define a stick defect objectively, based on international standards. Stick of 4 up to 10 mm in length will be scored as one full imperfection; over 10 mm in length to be scored as 2 full imperfections. The international definition of small stick is "approximately 5 mm to usually less than 10 mm" in length and medium stick is "usually 10 to 20 mm" in length, and large stick "about 20 to 30 mm".
65. Define a stone defect objectively as more than 4 mm in any dimension. International standards describe small stone as passing through a screen having round holes of 4.75mm in diameter.
66. Subsection 4-143-6(k). Change size classifications to the more commonly used numerical designations since "small", "medium", etc. were rarely if ever used. There is no actual change in the size requirements; only terminology.
Also, delete Type II Extra Large as this size is not used (minimum size for Type II Extra Fancy grade is Size 13 (previously size "large").
67. Section 4-143-7. Change term "minimum export grade" to "minimum export requirement". Request by industry members to permit Offgrade (which is not a "grade") to be exported as they feel that there is a market on the mainland for offgrade coffee for use in blends, decaffeinating, and in making caffeine. Strict labeling requirements were added to avoid any misunderstanding of the quality of the coffee.
68. Section 4-143-8. Add to authorized inspector’s authority to enforce "record keeping and certification requirements" of this chapter so that the exempt as well as certified coffee can be accounted for.
69. Subsection 4-143-8(c). Add stop sale notice provisions to add "teeth" and quick response to the provisions for enforcement, penalties, and prosecution. Comment was received that this would give the department too much power. Response is that "stop-sale" will be invoked only on known violations and a non-compliance notice explaining the violation will be issued at that time; it is never used without evidence of a violation.
70. Section 4-143-9 Abbreviations. Allow abbreviations in grade terms - HI for Hawaii and Ex for Extra were added to simplify grading and labeling. HI is universally recognized and Haw is permitted for other state grades.
71. Section 4-143-10 Coffee Quality Verification Program (CQVP). This is a new State coffee program where millers, upon approval of the department, may self-certify their own green coffee following strict requirements set under this section. In late 1996, millers said they would support the mandatory certification law if a self-certification program were put into effect.
Some negative comments were received about this program and some individuals felt it was like "letting the fox in the henhouse". However, Subsection 147-7(e) of the Coffee Certification Law, Act 345 states that "... the department may adopt rules ... for establishing a program of self inspection and certification ...". Also, many restrictions and requirements will be placed upon millers wanting to enter this program.
The State CQVP program is based on the USDA Quality Assurance Program (QAP), where USDA provides an in-plant year-round inspector that verifies the processors’ quality control program and personnel; the USDA Qualified Through Verification (QTV) program (previously called Quality Through Verification), where the USDA verifies a processors operations through periodic audits, the frequency which is determined by compliance with program requirements; and the USDA Partners in Quality (PIQ) program which is similar in nature to the QTV.
Comment that millers on this program should not be required to have all the equipment and setup to do complete grading as originally proposed, if they can show that they can grade coffee properly to a satisfactory level. We have removed this requirement since there are many millers that have demonstrated that they can consistently grade their products accurately.
71a. Term "dry" was added to "mill that wishes to participate in this program ..." to emphasize the particular requirement.
71b. The CQVP table originally proposed was removed in the second draft to allow some flexibility in the event timely changes needed to be made without going through the rule amending process. The deputy attorney general suggested that it was important for millers know the exact steps required to move from one level to another, so this table was re-inserted with minor changes.