7 C.F.R. §§ 56.20–56.29

§56.20. Who may obtain grading service.

7 C.F.R. § 56.20

An application for grading service may be made by any interested person, including, but not being limited to any authorized agent of the United States, any State, county, municipality, or common carrier.

Notes, amendments, and revision history

Amendments

[71 FR 42009, July 24, 2006]

Authority

Authority: 7 U.S.C. 1621-1627.

Amendments

[71 FR 42009, July 24, 2006]

§56.21. How application for service may be made; conditions of service.

7 C.F.R. § 56.21

(a)

Application.

(1)

Any person may apply for service with respect to products in which he or she has a financial interest by completing the required application for service. In any case in which the service is intended to be furnished at an establishment not operated by the applicant, the application must be approved by the operator of such establishment and such approval shall constitute an authorization for any employee of the Department to enter the establishment for the purpose of performing his or her functions under the regulations in this part. The application must include:

(i)

Name and address of the establishment at which service is desired;

(ii)

Name and mailing address of the applicant;

(iii)

Financial interest of the applicant in the products, except where application is made by a representative of a Government agency in the representative's official capacity;

(iv)

Signature of the applicant (or the signature and title of the applicant's representative);

(v)

Indication of the legal status of the applicant as an individual, partnership, corporation, or other form of legal entity; and

(vi)

The legal designation of the applicant's business as a small or large business, as defined by the U.S. Small Business Administration's North American Industry Classification System (NAICS) Codes.

(2)

In making application, the applicant agrees to comply with the terms and conditions of the regulations in this part (including, but not being limited to, such instructions governing grading of products as may be issued from time to time by the Administrator). No member of or Delegate to Congress or Resident Commissioner shall be admitted to any benefit that may arise from such service unless derived through service rendered a corporation for its general benefit. Any change in such status, at any time while service is being received, shall be promptly reported by the person receiving the service to the grading office designated by the Director or Chief to process such requests.

(b)

Notice of eligibility for service. The applicant will be notified whether the application is approved or denied.

Notes, amendments, and revision history

Amendments

[84 FR 49641, Sept. 23, 2019]

Authority

Authority: 7 U.S.C. 1621-1627.

Amendments

[84 FR 49641, Sept. 23, 2019]

§56.22. Filing of application.

7 C.F.R. § 56.22

An application for grading service shall be regarded as filed only when made pursuant to the regulations in this part.

Notes, amendments, and revision history

Amendments

[71 FR 42009, July 24, 2006]

Authority

Authority: 7 U.S.C. 1621-1627.

Amendments

[71 FR 42009, July 24, 2006]

§56.23. Form of application.

7 C.F.R. § 56.23

Each application for grading or sampling a specified lot of any product shall include such information as may be required by the Administrator in regard to the product and the premises where such product is to be graded or sampled.

Notes, amendments, and revision history

Amendments

[28 FR 6342, June 20, 1963. Redesignated at 42 FR 32514, June 27, 1977, and further redesignated at 46 FR 63203, Dec. 31, 1981]

Authority

Authority: 7 U.S.C. 1621-1627.

Amendments

[28 FR 6342, June 20, 1963. Redesignated at 42 FR 32514, June 27, 1977, and further redesignated at 46 FR 63203, Dec. 31, 1981]

§56.24. Rejection of application.

7 C.F.R. § 56.24

(a)

An application for grading service may be rejected by the Administrator:

(1)

Whenever the applicant fails to meet the requirements of the regulations prescribing the conditions under which the service is made available;

(2)

Whenever the product is owned by or located on the premises of a person currently denied the benefits of the Act;

(3)

Where any individual holding office or a responsible position with or having a substantial financial interest or share in the applicant is currently denied the benefits of the Act or was responsible in whole or in part for the current denial of the benefits of the Act to any person;

(4)

Where the Administrator determines that the application is an attempt on the part of a person currently denied the benefits of the Act to obtain grading services;

(5)

Whenever the applicant, after an initial survey has been made in accordance with the regulations, fails to bring the grading facilities and equipment into compliance with the regulations within a reasonable period of time;

(6)

Notwithstanding any prior approval whenever, before inauguration of service, the applicant fails to fulfill commitments concerning the inauguration of the service;

(7)

When it appears that to perform the services specified in this part would not be to the best interests of the public welfare or of the Government; or

(8)

When it appears to the Administrator that prior commitments of the Department necessitate rejection of the application.

(b)

Each such applicant shall be promptly notified by registered mail of the reasons for the rejection. A written petition for reconsideration of such rejection may be filed by the applicant with the Administrator if postmarked or delivered within 10 days after the receipt of notice of the rejection. Such petition shall state specifically the errors alleged to have been made by the Administrator in rejecting the application. Within 20 days following the receipt of such a petition for reconsideration, the Administrator shall approve the application or notify the applicant by registered mail of the reasons for the rejection thereof.

Notes, amendments, and revision history

Amendments

[71 FR 42009, July 24, 2006]

Authority

Authority: 7 U.S.C. 1621-1627.

Amendments

[71 FR 42009, July 24, 2006]

§56.25. Withdrawal of Application.

7 C.F.R. § 56.25

An application for grading service may be withdrawn by the applicant at any time before the service is performed upon payment by the applicant, of all expenses incurred by the AMS in connection with such application.

Notes, amendments, and revision history

Amendments

[71 FR 42009, July 24, 2006]

Authority

Authority: 7 U.S.C. 1621-1627.

Amendments

[71 FR 42009, July 24, 2006]

§56.26. Authority of applicant.

7 C.F.R. § 56.26

Proof of the authority of any person applying for any grading service may be required at the discretion of the Administrator.

Notes, amendments, and revision history

Amendments

[20 FR 671, Feb. 1, 1955. Redesignated at 42 FR 32514, June 27, 1977, and further redesignated at 46 FR 63203, Dec. 31, 1981]

Authority

Authority: 7 U.S.C. 1621-1627.

Amendments

[20 FR 671, Feb. 1, 1955. Redesignated at 42 FR 32514, June 27, 1977, and further redesignated at 46 FR 63203, Dec. 31, 1981]

§56.27. Order of service.

7 C.F.R. § 56.27

Grading service shall be performed, insofar as practicable and subject to the availability of qualified graders, in the order in which applications therefore are made except that precedence may be given to any application for an appeal grading.

Notes, amendments, and revision history

Amendments

[20 FR 671, Feb. 1, 1955; 20 FR 757, Feb. 4, 1955, as amended at 42 FR 2970, Jan. 14, 1977. Redesignated at 42 FR 32514, June 27, 1977, and further redesignated at 46 FR 63203, Dec. 31, 1981, as amended at 71 FR 42009, July 24, 2006]

Authority

Authority: 7 U.S.C. 1621-1627.

Amendments

[20 FR 671, Feb. 1, 1955; 20 FR 757, Feb. 4, 1955, as amended at 42 FR 2970, Jan. 14, 1977. Redesignated at 42 FR 32514, June 27, 1977, and further redesignated at 46 FR 63203, Dec. 31, 1981, as amended at 71 FR 42009, July 24, 2006]

§56.28. Types of service.

7 C.F.R. § 56.28

(a)

Noncontinuous grading service. Service is performed on an unscheduled basis, with no scheduled tour of duty, and when an applicant requests grading of a particular lot of shell eggs. Charges or fees are based on the time, travel, and expenses needed to perform the work. This service may be referred to as unscheduled grading service. Shell eggs graded under unscheduled grading service are not eligible to be identified with the official grademarks shown in § 56.36.

(b)

Continuous grading service on a scheduled basis. Service on a scheduled basis has a scheduled tour of duty and is performed when an applicant requests that a USDA licensed grader be stationed in the applicant's processing plant and grade shell eggs in accordance with U.S. Standards. The applicant agrees to comply with the facility, operating, and sanitary requirements of scheduled service. Minimum fees for service performed under a scheduled agreement will be based on the hours of the regular tour of duty. Shell eggs graded under scheduled grading service are eligible to be identified with the official grademarks shown in § 56.36 only when processed and graded under the supervision of a grader or quality assurance inspector as provided in § 56.39.

(c)

Temporary grading service. Service is performed when an applicant requests an official plant number with service provided on an unscheduled basis. The applicant must meet all facility, operating, and sanitary requirements of continuous service. Charges or fees are based on the time and expenses needed to perform the work. Shell eggs graded under temporary grading service are eligible to be identified with the official grademarks only when they are processed and graded under the supervision of a grader or quality assurance inspector as provided in § 56.39.

Notes, amendments, and revision history

Amendments

[84 FR 49642, Sept. 23, 2019]

Authority

Authority: 7 U.S.C. 1621-1627.

Amendments

[84 FR 49642, Sept. 23, 2019]

§56.29. Suspension or withdrawal of plant approval for correctable cause.

7 C.F.R. § 56.29

(a)

Any plant approval given pursuant to the regulations in this part may be suspended by the Administrator for:

(1)

Failure to maintain grading facilities and equipment in a satisfactory state of repair, sanitation, or cleanliness;

(2)

The use of operating procedures which are not in accordance with the regulations in this part; or

(3)

Alterations of grading facilities or equipment which have not been approved in accordance with the regulations in this part.

(b)

Whenever it is feasible to do so, written notice in advance of a suspension shall be given to the person concerned and shall specify a reasonable period of time in which corrective action must be taken. If advance written notice is not given, the suspension action shall be promptly confirmed in writing and the reasons therefor shall be stated, except in instances where the person has already corrected the deficiency. Such service, after appropriate corrective action is taken, will be restored immediately, or as soon thereafter as a grader can be made available. During such period of suspension, grading service shall not be rendered. However, the other provisions of the regulations pertaining to providing grading service on a resident basis will remain in effect unless such service is terminated in accordance with the provisions of this part.

(c)

If the grading facilities or methods of operation are not brought into compliance within a reasonable period of time as specified by the Administrator, the Administrator shall initiate withdrawal action pursuant to the Rules of Practice Governing Formal Adjudicatory Proceedings (7 CFR part 1, subpart H), and the operator shall be afforded an opportunity for an oral hearing upon written request in accordance with such Rules of Practice, with respect to the merits or validity of the withdrawal action, but any suspension shall continue in effect pending the outcome of such hearing unless otherwise ordered by the Administrator. Upon withdrawal of grading service in an official plant, the plant approval shall also become terminated and all labels, seals, tags, or packaging material bearing official identification shall, under the supervision of a person designated by the AMS, either be destroyed or the official identification completely obliterated or sealed in a manner acceptable to the AMS.

(d)

In any case where grading service is withdrawn under this section, the person concerned may thereafter apply for grading service as provided in §§ 56.20 through 56.29 of these regulations.

Notes, amendments, and revision history

Amendments

[71 FR 42009, July 24, 2006]

Authority

Authority: 7 U.S.C. 1621-1627.

Amendments

[71 FR 42009, July 24, 2006]