[Federal Register Volume 60, Number 183 (Thursday, September 21, 1995)]
[Rules and Regulations]
[Pages 49166-49171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23193]




[[Page 49165]]

_______________________________________________________________________

Part XII





Department of Agriculture





_______________________________________________________________________



Agricultural Marketing Service



_______________________________________________________________________



7 CFR Parts 55 and 59



Voluntary and Mandatory Egg and Egg Products Inspection; Final Rule

  Federal Register / Vol. 60, No. 183 / Thursday, September 21, 1995 / 
Rules and Regulations  

[[Page 49166]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 55 and 59

[Docket No. PY-93-001]
RIN 0581-AA58


Voluntary and Mandatory Egg and Egg Products Inspection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends the regulations implementing the 
voluntary and mandatory egg and egg products inspection programs 
authorized by the Agricultural Marketing Act of 1946, as amended, and 
the Egg Products Inspection Act in response to new technology and 
current production and processing practices within the egg products 
industry. The revisions redefine dirty eggs; define nest-run eggs and 
washed ungraded eggs; and clarify the type of facilities and equipment 
to be supplied to the grader/inspector, officially identifying 
products, appeal procedures, equipment requirements, sanitizing shell 
eggs prior to breaking, and general operating procedures. The revisions 
also provide for less than quarterly visits to hatcheries and update 
the types of nonallowed discrimination in providing service.

EFFECTIVE DATE: October 23, 1995.

FOR FURTHER INFORMATION CONTACT: Larry W. Robinson, Chief, Grading 
Branch, 202/720-3271.

SUPPLEMENTARY INFORMATION: This rule has been determined to be not 
significant for purpose of Executive Order 12866 and therefore has not 
been reviewed by OMB.
    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. It is not intended to have retroactive effect. 
This rule would not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of this rule.
    The Administrator, Agricultural Marketing Service (AMS), has 
determined that this rule will not have a significant economic impact 
on a substantial number of small entities, as defined by the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.).
    The information collection requirements contained in 7 CFR Parts 55 
and 59 have been approved by the Office of Management and Budget and 
assigned OMB Control Numbers 0581-0146 and 0581-0113, respectively, 
under the Paperwork Reduction Act of 1980.

Background

    The rule encompasses amendments for two separate, but related 
regulations. Regulations for voluntary inspection of egg products and 
grading (7 CFR Part 55) are authorized by the Agricultural Marketing 
Act of 1946, as amended, (AMA) (7 U.S.C. 1621-1627). These regulations 
cover several types of inspection and grading activities and product 
identification or certification which are not covered by the mandatory 
inspection regulations. Regulations for the mandatory inspection of 
eggs and egg products (7 CFR Part 59) are authorized by the Egg 
Products Inspection Act (EPIA) (21 U.S.C. 1034). The regulations 
require and provide for the continuous inspection of the processing of 
egg products and the control and disposition of restricted eggs. The 
EPIA and regulations were designed to provide a safe food source for 
the consuming public. The revisions will clarify and update the 
regulatory provisions commensurate with changes in industry technology 
and marketing practices, or are editorial in nature.
    For the voluntary inspection program, the amendments update the 
types of prohibited discrimination (Sec. 55.11). They specify the 
facilities and equipment to be provided for sampling, weighing, and 
examination of product and the office space and equipment to be 
furnished (Sec. 55.95). Alternative work schedules also are provided 
(Sec. 55.96). The amendments provide for application of the official 
plant number at alternative locations on official labels (Sec. 55.310) 
and specify the permitted disposition of labels and packaging materials 
bearing official identification when inspection service is terminated 
by USDA (Sec. 55.330). The amendments also clarify appeal gradings and 
inspections including certificate issuance (Sec. 55.410 through 
Sec. 55.460).
    For the mandatory inspection program, the amendments redefine dirty 
eggs by deleting the term prominent stains. The amendments also define 
nest-run eggs and washed ungraded eggs (Sec. 59.5). The amendments also 
update the types of nonallowed discrimination (Sec. 59.17). The 
amendments provide a minimum of one visit each fiscal year to 
hatcheries since present operating practices pose minimal risk of 
incubator reject eggs or other restricted eggs from these operations 
entering consumer channels (Sec. 59.28). In official egg products 
plants, the amendments define or specify the following: time of 
inspection, basis of billing, and the type of facilities and equipment 
to be furnished by the plant (Secs. 59.122 through 59.136). The 
amendments clarify the conditions under which labeling of product is to 
be corrected in the appeal procedure (Secs. 59.300 through 59.360). 
They also clarify the labeling requirements with regard to approval, 
format, terminology, identification, and disposition (Secs. 59.411 
through 59.417). In addition, the amendments expand on equipment 
requirements and general plant operational procedures, including the 
shipment of nondenatured inedible, use of approved compounds, candling 
and transfer room facilities, and equipment and egg sanitizing 
requirements (Secs. 59.502 through 59.515) due to changes in industry 
technology. The amendments also provide for liquid egg cooling and 
frozen egg defrosting with a definition of ``cold tap water'' 
(Secs. 59.530 through 59.539). The disposition of restricted eggs and 
the labeling and sale of nest-run and washed ungraded eggs are further 
defined (Secs. 59.720 through 59.801). The section dealing with 
imported shell eggs and egg products is revised to require that the 
date of production be provided for shell eggs, to exempt certain shell 
eggs imported for breaking from primary container labeling 
requirements, and to clarify the provisions for relabeling imported egg 
products. (Secs. 59.900 through 59.956).

Comments

    AMS published proposed revisions in the Federal Register (60 FR 
20054) on April 24, 1995, to the Regulations Governing the Voluntary 
Inspection of Egg Products and Grading in 7 CFR part 55 and to the 
Regulations Governing the Inspection of Eggs and Egg Products in 7 CFR 
part 59. A 60-day comment period was provided. Effective May 28, 1995, 
the voluntary and mandatory egg products inspection program activities 
were transferred from AMS to the Food Safety and Inspection Service 
(FSIS). AMS retained authority under EPIA for the shell egg 
surveillance program. This program requires quarterly visits to egg 
packers and hatcheries to determine the disposition of certain types of 
undergrade eggs.
    In response to the notice of proposed rulemaking, AMS received 
sixteen comments, the majority of which addressed the shell egg 
surveillance portion of the regulations. The comments were received 
from six industry members, six State Governments, two industry 
associations, one university, and one State Government organization.

[[Page 49167]]

    Three commenters expressed overall support of the proposal.
    Several commenters responded to the proposal to change the number 
of inspection visits to hatcheries from each calendar quarter to once 
each fiscal year. Three commenters supported the proposal; one 
commenter supported the proposal, but questioned if even one visit a 
year was necessary; one commenter recommended eliminating all visits to 
hatcheries; and three commenters objected to the change because they 
believed that the reduced visits would increase the likihood of 
incubator rejects and other restricted eggs entering consumer channels.
    When the regulations implementing the EPIA were promulgated, the 
Agency determined that hatcheries should be subject to quarterly 
inspections similar to shell egg packers packing eggs for the ultimate 
consumer. Hatcheries, in addition to supplying chicks to the poultry 
industry traditionally sold surplus shell eggs to the consuming public. 
Likewise, before the enactment of the EPIA, hatcheries could legally 
process restricted eggs into egg products which were sold for human 
consumption.
    As the industry evolved from many small independent hatcheries to a 
fewer number of very large integrated firms, the volume of shell eggs 
supplied to consumer channels by hatcheries has diminished 
significantly. Additionally, incidents involving hatcheries processing 
restricted eggs for human consumption are a rare exception.
    The Agency also considered other issues when it proposed reducing 
the required number of inspection visits to hatcheries. These 
considerations included recent reviews of the quarterly inspection 
reports which revealed only a few minor violations, such as 
recordkeeping and labeling; the increased emphasis and importance of 
biosecurity at all hatchery facilities; and a potential cost savings 
which would result from fewer visits to hatcheries.
    Under the revision, hatcheries will be subject to a minimum of one 
inspection visit each fiscal year. However, if at anytime, the Agency 
has reason to believe that a hatchery is in violation of the EPIA and 
its regulations, the Agency is authorized to perform as many inspection 
visits as necessary to assure that the hatchery or any egg handler, for 
that matter, is in compliance with the Act.
    The Agency is not making any changes as a result of the comments 
made in response to this revision. The regulations authorize and the 
Agency believes that inspection visits to hatcheries are an important 
vital part of its regulatory responsibilities. The revision reduces the 
number of required visits to a frequency that is in accordance with the 
current makeup of the industry while not limiting the Agency's ability 
to perform inspection visits and administer the program.
    One commenter recommended utilizing funds saved by the reduction of 
inspection visits to hatcheries to perform inspection visits to 
distributors.
    We did not accept the recommendation. In 1987, the Agency 
discontinued inspection visits to wholesalers/distributors except in 
cases such as performing destination gradings or following up on an 
alleged violation of the EPIA. The Agency decided to concentrate its 
inspection activities on the egg handlers packing eggs destined for the 
ultimate consumer and does not plan to resume routine inspection visits 
to wholesalers/distributors at this time except on a case-by-case 
basis. Funds saved will be used to administer other segments of the 
shell egg surveillance program in the most cost effective manner.
    One commenter recommended revising the proposed definition of 
washed ungraded eggs to include ``except some dirties or other obvious 
undergrades may have been removed.''
    The Agency did not accept the recommendation because the suggested 
addition did not describe washed ungraded eggs. The suggested addition 
more correctly describes nest-run eggs for which it is appropriate to 
remove obvious dirties and undergrade eggs to facilitate egg grading 
and/or processing. Washed ungraded eggs do not require this exception 
because dirties and undergrades have been either already eliminated by 
the washing operation or previously removed if the eggs were packed as 
nest-run.
    One commenter expressed support of the proposal to revise the 
definition of dirty eggs and recommended that containers used to 
transport washed ungraded eggs be labeled with the size of the eggs in 
the lot to facilitate the standardization of total solids of liquid 
whole eggs.
    We did not accept the recommendation to allow washed ungraded shell 
eggs to be identified by size because any such further identification 
could indicate that the product was intended for consumer sales by 
obscuring the fact that the product was nest-run eggs which had not 
been graded for quality. The purpose of defining washed ungraded shell 
eggs was to categorize shell eggs from inline operation facilities 
which could not be defined as nest-run eggs because they had been 
washed. In many inline operations, shell eggs move through washing 
equipment as part of the collection process. Management determines at a 
later time if the washed product will be sized and graded for quality 
or sold as a washed ungraded product.
    One commenter expressed support for the revisions but recommended 
that the addition of previously frozen egg or egg products to 
unpasteurized liquid be permitted for the purpose of complying with 
liquid cooling requirements.
    The Agency did not accept this recommendation. The addition of 
previously frozen egg or egg products to liquid product (either 
pasteurized of unpasteurized) for the purpose of complying with liquid 
cooling requirements is not a recommended good manufacturing practice 
due to the potential for contamination of the resultant liquid. We find 
it inappropriate to approve a procedure which has the potential to 
contaminate a product even if the product is subject to further 
processing (pasteurization).
    One commenter generally supported the revisions but questioned the 
elimination of ``or prominent stains'' from the definition of dirty 
egg.
    The Agency is making this change to make the regulations consistent 
with the language of the EPIA. Since the EPIA does not define dirty by 
prominent stains, the regulations should not include a stain criteria 
in its definition.
    The commenter also took exception to the removal of the last 
sentence of 7 CFR 59.155.
    When the Egg Products Inspection Act took effect on July 1, 1971, 
the subject sentence provided plants the authority to maintain 
possession of any egg products they had processed prior to July 1, 
1971, and their inauguration of service. The sentence is out-of-date 
and obsolete and will be removed from the regulations.
    Additionally, the commenter suggested that the word ``place'' in 
new paragraph 7 CFR 59.350(a) was too restrictive and that we should 
consider using ``establishment'' instead.
    We did not accept this recommendation. The term ``place'' generally 
means any location where product is located, whereas the term 
``establishment'' generally means the location of a business or firm 
where product is located. Accordingly, ``place'' is the least 
restrictive term to use when describing the location of product.
    The Agency is also withdrawing from the final rule the proposal to 
define a recognized laboratory and a split sample (Sec. 59.5), the 
proposal to provide an alternate operating schedule (Sec. 59.124), the 
proposal to specify the requirements 

[[Page 49168]]
for blueprints, changes and approval (Sec. 59.146), and the proposal to 
specify the sampling of egg products (Sec. 59.580 (b), (d), and (e)). 
The current regulations for these sections will not be amended at this 
time pending further review by FSIS.
    With the exception of the above changes, the regulatory text 
contained in the proposed rule is hereby adopted.

List of Subjects

7 CFR Part 55

    Eggs and egg products, Food grades and standards, Food labeling, 
Reporting and recordkeeping requirements.

7 CFR Part 59

    Eggs and egg products, Exports, Food grades and standards, Food 
labeling, Imports, Reporting and recordkeeping requirements.

    For reasons set forth in the preamble, title 7, Code of Federal 
Regulations, Parts 55 and 59 are amended as follows:

PART 55--REGULATIONS GOVERNING THE VOLUNTARY INSPECTION OF EGG 
PRODUCTS AND GRADING

    1. The authority citation for Part 55 continues to read as follows:

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


Sec. 55.11  [Amended]

    2. Section 55.11 is amended by removing the words ``or national 
origin'' and adding in its place ``national origin, age or 
disability''.
    3. Section 55.95 is revised to read as follows:


Sec. 55.95  Facilities and equipment to be furnished for use of graders 
and inspectors in performing service on a resident inspection basis.

    (a) Facilities and equipment for proper sampling, weighing, 
examination of products and monitoring processing procedures shall be 
furnished by the official plant for use by inspectors and graders. Such 
facilities and equipment shall include but not be limited to a room or 
area suitable for sampling product, and acceptable candling light, 
flashlight, heavy duty, high speed drill with an eleven sixteenths-inch 
or larger bit of sufficient length to reach the bottom of containers 
used for frozen eggs, metal stem thermometer(s), test thermometer(s), 
stop watch, test weighing scale(s) and test weight(s), test kit for 
determining the bactericidal strength of sanitizing solutions, and 
stationary or adequately secured storage box or cage (capable of being 
locked only by the inspector) for holding official samples.
    (b) Acceptable furnished office space and equipment, including but 
not being limited to, a desk, lockers or cabinets (equipped with a 
satisfactory locking device) suitable for the protection and storage of 
supplies, and with facilities for inspectors and graders to change 
clothing.
    4. Section 55.96 is amended by adding a sentence before the last 
sentence and revising the last sentence of the section to read as 
follows:


Sec. 55.96  Schedule of operation of official plants.

* * * * *
    As an alternative, the normal operating schedule shall consist of a 
continuous 10-hour period per day (excluding not to exceed 1 hour for 
lunch), 4 consecutive days per week, within the administrative 
workweek, Sunday through Saturday for each full shift required. Graders 
are to be given reasonable advance notice by management of any change 
in the hours that grading service is requested.
    5. In Sec. 55.310, paragraph (b) is revised to read as follows:


Sec. 55.310  Form of official identification symbol and inspection 
mark.

* * * * *
    (b) The inspection marks which are permitted to be used on products 
shall be contained within the outline of a shield and with the wording 
and design set forth in Figure 2 of this section, except the plant 
number may be preceded by the letter ``P'' in lieu of the word 
``plant''. Alternatively, it may be omitted from the official shield if 
applied on the container's principal display panel or other prominent 
location and preceded by the letter ``P'' or the word ``Plant''.
    6. In section 55.330, paragraph (c) is revised to read as follows:


Sec. 55.330  Unauthorized use or disposition of approved labels.

* * * * *
    (c) Upon termination of inspection service in an official plant 
pursuant to the regulations in this part, all labels or packaging 
material bearing official identification to be used to identify product 
packed by the plant shall either be destroyed, or have the official 
identification completely obliterated under the supervision of a USDA 
representative, or, if to be used at another location, modified in a 
manner acceptable to the Service.
    7. In Sec. 55.410, paragraph (b) is amended by removing the words 
``in the regional office'' and adding in its place ``with the Regional 
Director in the region'', and revising the heading of paragraph (a) to 
read as follows:


Sec. 55.410  Where to file an appeal.

    (a) Appeal of resident grader's or inspector's grading or decision 
in an official plant. * * *
    8. Section 55.420 is revised to read as follows:


Sec. 55.420  How to file an appeal.

    The request for an appeal grading or inspection or review of a 
grader's or inspector's decision may be made orally or in writing. If 
made orally, written confirmation may be required. The applicant shall 
clearly state the identity of the product, the decision which is 
questioned, and the reason(s) for requesting the appeal service. If 
such appeal request is based on the results stated on an official 
certificate, the original and all copies of the certificate available 
at the appeal grading or inspection site shall be provided to the 
appeal grader or inspector assigned to make the appeal grading or 
inspection.


Sec. 55.430  [Amended]

    9. Section 55.430 is amended by adding after the words ``or not 
substantial,'' the words ``class, quality, quantity,'' and removing the 
word ``such'' after the words ``reason(s) for''.
    10. Section 55.450 is amended by redesignating paragraphs (a) and 
(b) as paragraphs (b) and (c) and adding a new paragraph (a) to read as 
follows:


Sec. 55.450  Procedures for selecting appeal samples.

    (a) Prohibition on movement of product. Products shall not have 
been moved from the place where the grading or inspection being 
appealed was performed and must have been maintained under adequate 
refrigeration, when applicable.
* * * * *
    11. In Sec. 55.460, the last sentence is revised to read as 
follows:


Sec. 55.460  Appeal certificates.

* * * * *
    When the appeal grader or inspector assigns a different class to 
the lot or determines that a net weight shortage exists, the lot shall 
be retained pending correction of the labeling or approval of the 
product disposition by the National Supervisor.

PART 59--INSPECTION OF EGGS AND EGG PRODUCTS (EGG PRODUCTS 
INSPECTION ACT)

    12. The authority citation for part 59 continues to read as 
follows:

    Authority: 21 U.S.C. 1031-1056.

    13. Section 59.5 is amended by revising the definition for the term 
``Dirty egg'' or ``Dirties''; adding 

[[Page 49169]]
alphabetically two new terms; and by removing the word ``salmonella'' 
and adding the word ``Salmonella'' in its place everywhere it appears 
in the Part.


Sec. 59.5  Terms defined.

* * * * *
    Dirty egg or ``Dirties'' means an egg(s) that has an unbroken shell 
with adhering dirt or foreign material.
* * * * *
    Nest-run eggs means eggs which are packed as they come from the 
production facilities without having been washed, sized and/or candled 
for quality, with the exception that some checks, dirties, or other 
obvious undergrades may have been removed.
* * * * *
    Washed ungraded eggs means eggs which have been washed but not 
sized or segregated for quality.
* * * * *


Sec. 59.17  [Amended]

    14. Section 59.17 is amended by removing the words ``or national 
origin'' and adding in its place ``national origin, age, or 
disability''.
    15. Section 59.28 (a) (1) is amended by revising the last sentence 
and adding an additional sentence, to read as follows:


Sec. 59.28  Other inspections.

    (a) * * *
    (1) * * * In the case of shell egg packers packing eggs for the 
ultimate consumer (i.e., packed for direct use of household consumers, 
restaurants, institutions, etc.), such inspections shall be made a 
minimum of once each calendar quarter. Hatcheries are to be inspected a 
minimum of once each fiscal year.
* * * * *
    16. Section 59.122 is revised to read as follows:


Sec. 59.122  Time of inspection.

    The inspector who is to perform the inspection in an official plant 
shall be given reasonable advance notice by plant management of the 
hours when such inspection will be required.
    17. Section 59.130 is amended by adding two sentences at the end of 
the section to read as follows:


Sec. 59.130  Basis of billing plants.

    * * * In addition, fees will be charged and collected for 
certifications requested by and provided for the official plant that 
are not within the scope of these regulations. Unless otherwise 
provided in this part, the fees to be charged and collected for any 
service performed (other than an appeal) shall be based on the 
applicable rates specified in the Regulations Governing the Voluntary 
Inspection of Egg Products and Grading (7 CFR, 55.510 through 55.560).
    18. In Sec. 59.136, the heading and paragraph (a) are revised to 
read as follows:


Sec. 59.136  Facilities and equipment to be furnished by official 
plants for use of inspectors in performing service.

    (a) Such facilities and equipment shall include but not be limited 
to a room or area suitable for sampling product, and acceptable 
candling light, flashlight, heavy duty, high speed drill with an eleven 
sixteenths-inch or larger bit of sufficient length to reach the bottom 
of containers used for frozen eggs, metal stem thermometer(s), test 
thermometer(s), stop watch, test weighing scale(s) and test weight(s), 
test kit for determining the bactericidal strength of sanitizing 
solutions, and stationary or adequately secured storage box or cage 
(capable of being locked only by the inspector) for holding official 
samples.
* * * * *


Sec. 59.155  [Amended]

    19. Section 59.155 is amended by removing the last sentence of the 
section.


Sec. 59.300  [Amended]

    20. Section 59.300 is amended by adding immediately after the word 
``class'' the word ``, quantity,''.


Sec. 59.310  [Amended]

    21. In section 59.310, paragraph (a) is amended by removing the 
word ``from'' in the heading and replacing it with the word ``of'', and 
in the first sentence, adding a comma followed by the word 
``quantity,'' immediately after the words ``determination of the 
class'', and adding a comma immediately after the words ``left such 
plant''.
    22. Section 59.320 is revised to read as follows:


Sec. 59.320  How to file an appeal.

    The request for an appeal inspection or review of an inspector's 
decision may be made orally or in writing. If made orally, written 
confirmation may be required. The applicant shall clearly state the 
identity of the product, the decision which is questioned, and the 
reason(s) for requesting the appeal service. If such appeal request is 
based on the results stated on an official certificate, the original 
and all copies of the certificate available at the appeal inspection 
site shall be provided to the inspector assigned to make the appeal 
inspection.
    23. A new Sec. 59.330 is added to read as follows:


Sec. 59.330  When an application for an appeal grading or inspection 
may be refused.

    When it appears to the official with whom an appeal request is 
filed that the reasons given in the request are frivolous or not 
substantial, or that the condition of the product has undergone a 
material change since the original grading or inspection, or that the 
original lot has changed in some manner, or the Act or the regulations 
in this part have not been complied with, the applicant's request for 
the appeal inspection may be refused. In such case, the applicant shall 
be promptly notified of the reason(s) for such refusal.
    24. Section 59.350 is amended by redesignating paragraphs (a) and 
(b) as paragraphs (b) and (c) and adding a new paragraph (a) to read as 
follows:


Sec. 59.350  Procedures for selecting appeal samples.

    (a) Prohibition on movement of product. Products shall not have 
been moved from the place where the inspection being appealed was 
performed and must have been maintained under adequate refrigeration 
when applicable.
* * * * *
    25. Section 59.360 is amended by revising the last sentence to read 
as follows:


Sec. 59.360  Appeal inspection certificates.

    * * * When the appeal inspector assigns a different class to the 
lot or determines that a net weight shortage exists, the lot shall be 
retained pending correction of the labeling or approval of the product 
disposition by the National Supervisor.
    26. Section 59.411 is amended by revising (b)(1) and (c)(3), 
revising the first sentence of (c)(1) and (e), and revising the last 
sentence of (e)(3) to read as follows:


Sec. 59.411  Requirement of formulas and approval of labels for use in 
official egg products plants.

* * * * *
    (b) * * *
    (1) A statement showing by their common or usual names the kinds 
and percentages of the ingredients comprising the egg product. A range 
may be given in cases where the percentages may vary from time to time. 
Formulas are to be expressed in terms of a liquid product except for 
products which are dry blended. Also, for products to be dried, the 
label may show the ingredients in the order of descending proportions 
by weight in the dried form. However, the formula 

[[Page 49170]]
submitted must include the percentage of ingredients in both liquid and 
dried form.
* * * * *
    (c) * * *
    (1) The common or usual name, if any, and if the product is 
comprised of two or more ingredients, such ingredients shall be listed 
in the order of descending proportions by weight in the form in which 
the product is to be marketed (sold), except that ingredients in dried 
products (other than dry blended) may be listed in either liquid or 
dried form. * * *
* * * * *
    (3) The lot number or approved alternative code number indicating 
date of production;
* * * * *
    (e) Nutrition information may be included on labels used to 
identify egg products, providing such labeling complies with the 
provisions of 21 CFR part 101, promulgated under the Federal Food, 
Drug, and Cosmetic Act and the Fair Packaging and Labeling Act. * * *
* * * * *
    (3) * * * All labels showing nutrition information or claims are 
subject to review by the Food and Drug Administration prior to approval 
by the Department.
* * * * *
    27. In Sec. 59.412, paragraph (b) is revised to read as follows:


Sec. 59.412  Form of official identification symbol and inspection 
mark.

* * * * *
    (b) The inspection mark which is to be used on containers of edible 
egg products shall be contained within the outline of a shield and with 
the wording and design set forth in Figure 2 of this section, except 
the plant number may be preceded by the letter ``P'' in lieu of the 
word ``plant''. Alternatively, it may be omitted from the official 
shield if applied on the container's principal display panel or other 
prominent location and preceded by the letter ``P'' or the word 
``Plant''.
* * * * *
    28. Section 59.415 is amended by revising the second sentence of 
the introductory text to read as follows:


Sec. 59.415  Use of other official identification.

    * * * The plant number may be omitted from the identification if 
applied elsewhere on the container's principal display panel or other 
prominent location and preceded by the letter ``P'' or the word 
``plant''.
* * * * *
    29. In Sec. 59.417, paragraph (c) is revised to read as follows:


Sec. 59.417  Unauthorized use or disposition of approved labels.

* * * * *
    (c) Upon termination of inspection service in an official plant 
pursuant to these regulations, all labels or packaging materials 
indicating product packed by the plant which bear official 
identification shall either be destroyed under the supervision of the 
Service or, if used in another location, modified in a manner 
acceptable to the Service before use.
    30. In Sec. 59.502, paragraph (b) is revised to read as follows:


Sec. 59.502  Equipment and utensils; PCB-containing equipment.

* * * * *
    (b) Except as authorized by the Administrator, in new or remodeled 
equipment and equipment installations, the equipment and installation 
shall comply with the applicable 3-A or E-3-A Sanitary Standards and 
accepted practices currently in effect for such equipment.
* * * * *
    31. In Sec. 59.504, the last sentence of paragraph (c) and 
paragraph (h) are revised to read as follows:


Sec. 59.504  General operating procedures.

* * * * *
    (c) * * * In addition, product shipped from the official plant for 
industrial use or animal food need not be denatured or decharacterized, 
provided, that such product is properly packaged, labeled, segregated, 
and inventory controls are maintained, and that such product is shipped 
under Government seal and certificate and received at the destination 
location by an inspector or grader as defined in this part.
* * * * *
    (h) Only germicides, insecticides, rodenticides, detergents, or 
wetting agents or other similar compounds which will not deleteriously 
affect the eggs or egg products when used in an approved manner and 
which have been approved by the Administrator, may be used in an 
official plant. The identification, storage, and use of such compounds 
shall be in a manner approved by the Administrator.
* * * * *
    32. In Sec. 59.506, paragraph (d) is revised to read as follows:


Sec. 59.506  Candling and transfer-room facilities and equipment.

* * * * *
    (d) Candling devices of an approved type shall be provided to 
enable candlers to detect loss, inedible, dirty eggs, and eggs other 
than chicken eggs.
* * * * *
    33. Section 59.515 is amended by removing the last sentence of 
paragraph (a)(8), removing (a)(9), and removing paragraph (c).
    34. A new Sec. 59.516 is added to read as follows:


Sec. 59.516  Sanitizing and drying of shell eggs prior to breaking.

    (a) Immediately prior to breaking, all shell eggs shall be spray 
rinsed with potable water containing an approved sanitizer of not less 
than 100 ppm nor more than 200 ppm of available chlorine or its 
equivalent. Alternative procedures may be approved by the Administrator 
in lieu of sanitizing shell eggs washed in the plant.
    (b) Shell eggs shall be sufficiently dry at time of breaking to 
prevent contamination or adulteration of the liquid egg product from 
free moisture on the shell.
    35. In Sec. 59.530, paragraph (g) is added to read as follows:


Sec. 59.530  Liquid egg cooling.

* * * * *
    (g) Previously frozen egg or egg product cannot be added to liquid 
product for the purpose of complying with liquid cooling requirements.
    36. In Sec. 59.539, paragraph (d)(1) is revised to read as follows:


Sec. 59.539  Defrosting operations.

* * * * *
    (d) * * *
    (1) Frozen eggs packed in metal or plastic containers may be placed 
in running tap water (70 F deg. or lower) without submersion to speed 
defrosting.
* * * * *
    37. Section 59.580 is amended by revising paragraph (c) to read as 
follows:


Sec. 59.580  Laboratory tests and analyses.

* * * * *
    (c) Results of all analyses and tests performed under paragraphs 
(a) and (b) of this section shall be provided to the inspector promptly 
upon receipt by the plant. If samples of pasteurized products or heat 
treated dried egg whites, in addition to those described in paragraphs 
(a) and (b) of this section, are analyzed for the presence of 
Salmonella, the plant shall immediately advise the inspector of any 
such samples which are determined to be Salmonella positive.
* * * * *
    38. In Sec. 59.720, paragraphs (a)(1) and (b) are revised to read 
as follows:


Sec. 59.720  Disposition of restricted eggs.

    (a) * * * 

[[Page 49171]]

    (1) Checks and dirties shall be labeled in accordance with 
Sec. 59.800 and shipped directly or indirectly to an official egg 
products plant for segregation and processing. Inedible and loss eggs 
shall not be intermingled in the same container with checks and 
dirties.
* * * * *
    (b) Eggs which are packed for the ultimate consumer and which have 
been found to exceed the tolerance for restricted eggs permitted in the 
official standards for U.S. Consumer Grade B shall be identified as 
required in Secs. 59.800 and 59.860 and shall be shipped directly or 
indirectly:
    (1) To an official egg products plant for proper segregation and 
processing; or
    (2) Be regraded so that they comply with the official standards; or
    (3) Used as other than human food.
* * * * *
    39. Section 59.800 is amended by revising the next to last sentence 
to read as follows:


Sec. 59.800  Identification of restricted eggs.

    * * * When eggs are packed in immediate containers, e.g., cartons, 
sleeve packs, overwrapped 2\1/2\- or 3-dozen packs, etc., for sale to 
household consumers under the exemptions provided for in section 59.100 
(c), or (f), they shall be deemed to be satisfactorily identified in 
accordance with the requirements of this part if such immediate 
containers bear the packer's name and address and the quality of the 
eggs. * * * 
    40. In Sec. 59.801, the section is revised to read as follows:


Sec. 59.801  Nest run or washed ungraded eggs.

    Nest run or washed ungraded eggs are exempt from the labeling 
provisions in Sec. 59.800. However, when such eggs are packed and sold 
to consumers, they may not exceed the tolerance for restricted eggs 
permitted in the official standards for U.S. Consumer Grade B shell 
eggs.
    41. In Sec. 59.905, paragraph (a) is revised to read as follows:


Sec. 59.905  Importation of restricted eggs or eggs containing more 
restricted eggs than permitted in the official standards for U.S. 
Consumer Grade B.

    (a) No containers of restricted egg(s) other than checks or dirties 
shall be imported into the United States. The shipping containers of 
such eggs shall be identified with the name, address, and country of 
origin of the exporter, and the date of pack and quality of the eggs 
(e.g., checks, or dirties) preceded by the word ``Imported'' or the 
statement ``Imported Restricted Eggs--For Processing Only In An 
Official USDA Plant,'' or ``Restricted Eggs--Not To Be Used As Human 
Food.'' Such identification shall be legible and conspicuous. 
Alternatively, for properly sealed and certified shipments of shell 
eggs imported for breaking at an official egg products plant, the 
shipping containers need not be labeled, provided that the shipment is 
segregated and controlled upon arrival at the destination breaking 
plant.
* * * * *


Sec. 59.915  [Amended]

    42. In Sec. 59.915, paragraph (b)(8) is amended by adding after the 
words ``shell eggs'' the words ``, including date of pack,''.


Sec. 59.940  [Amended]

    43. In Sec. 59.940, the last sentence is removed.
    44. In Sec. 59.945, paragraph (b) is revised to read as follows:


Sec. 59.945  Foreign eggs and egg products offered for importation; 
reporting of findings to customs; handling of products refused entry.

* * * * *
    (b) Consignees shall, at their own expense, return immediately to 
the collector of customs, in means of conveyance or packages sealed by 
the U.S. Department of Agriculture, any eggs or egg products received 
by them under this part which in any respect do not comply with this 
part.
* * * * *
    45. Section 59.950 is amended by revising paragraphs (a)(3) and 
(a)(8), redesignating paragraph (b) as (c), and adding a new paragraph 
(b) to read as follows:


Sec. 59.950  Labeling of containers of eggs or egg products for 
importation.

    (a) * * *
    (3) The quality or description of shell eggs, including date of 
pack;
* * * * *
    (8) The date of production and plant number of the plant at which 
the egg product was processed and/or packed.
    (b) For properly sealed and certified shipments of shell eggs 
imported for breaking at an official egg products plant, the immediate 
containers need not be labeled, provided that the shipment is 
segregated and controlled upon arrival at the destination breaking 
plant.
* * * * *
    46. Section 59.955 is amended by redesignating paragraph (b) as (c) 
and adding a new paragraph (b) to read as follows:


Sec. 59.955  Labeling of shipping containers of eggs or egg products 
for importation.

* * * * *
    (b) For properly sealed and certified shipments of shell eggs 
imported for breaking at an official egg products plant, the shipping 
containers need not be labeled, provided that the shipment is 
segregated and controlled upon arrival at the destination breaking 
plant.
* * * * *
    47. A new Sec. 59.956 is added to read as follows:


Sec. 59.956  Relabeling of imported egg products.

    (a) Egg products eligible for importation may be relabeled with an 
approved label under the supervision of an inspector at an official egg 
products plant or other location. The new label for such product shall 
indicate the country of origin except for products which are 
reprocessed (repasteurized, or in the case of dried products, dry 
blended with products produced in the United States) in an official egg 
products plant.
    (b) The label for relabeled products must state the name, address, 
and zip code of the distributor, qualified by an appropriate term such 
as ``packed for'', ``distributed by'' or ``distributors''.

    Dated: September 13, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-23193 Filed 9-20-95; 8:45 am]
BILLING CODE 3410-02-P