[Federal Register Volume 61, Number 56 (Thursday, March 21, 1996)]
[Rules and Regulations]
[Pages 11504-11514]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6645]



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

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 54

[No. LS-95-006]


Amendment to Meats, Prepared Meats, and Meat Products (Grading, 
Certification and Standards)

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: The Agricultural Marketing Service (AMS) is amending the 
Meats, Prepared Meats, and Meat Products (Grading, Certification and 
Standards) by adding definitions, changing certificate forms, removing 
two outdated official stamp imprints, and adding three new official 
stamp imprints. Program changes made to better serve our customers and 
improve efficiency resulted in development of the above new items, and 
caused the disuse of the old stamps and certificates.

EFFECTIVE DATE: April 22, 1996.

FOR FURTHER INFORMATION CONTACT: Larry R. Meadows, Chief, Meat Grading 
and Certification Branch, (202) 720-1246.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778 and the Regulatory Flexibility Act

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by OMB.
    This 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 this rule or the application of its 
provisions.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (Pub. L. 96-354, 5 U.S.C. 601 et seq.), the Administrator of 
the AMS has considered the economic impact of this action on small 
entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
the

[[Page 11505]]

businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened.
    After implementation of the rule the unit cost for providing meat 
grading and certification services will remain at approximately $.0009 
per pound. Therefore, implementation of the changes will not 
significantly affect the cost of providing meat grading and 
certification services to the meat industry. Accordingly, the 
Administrator of AMS has determined that this rule will not have a 
significant economic impact on a substantial number of small entities 
as defined by the RFA.

Paperwork Reduction Act

    The action replaces two forms with new editions. However, the new 
forms will be completed by AMS graders will not be a burdon on the 
public. Therefore, under the provisions of the Paperwork Reduction Act 
the forms will not be reviewed by OMB.

Background

    The Secretary of Agriculture is authorized under the Agricultural 
Marketing Act (AMA) of 1946, as amended, 7 U.S.C. 1621 et seq., to 
provide voluntary Federal meat grading and acceptance services to 
facilitate the orderly marketing of meat and meat products and to 
enable consumers to obtain the quality of meat they desire. As program 
activities or industry practices change, the regulations governing such 
activities require updating. Since July 1990, when Title 7, Subtitle B, 
Chapter I, Subchapter C, Part 54, Sections 54.1-54.26 was last amended, 
the program revised official certificates and other documents. The two 
new certificates, which allow up to five program employees to charge an 
applicant on one document, significantly reduce preparation time, 
certificate usage, and documents sent to users of the service. As a 
result of the changes to the official certificates, new representations 
are included in the rule.
    The program will also add a single stamp and a series of three new 
official stamps, which were developed to prevent repetitive motion 
injuries to our personnel. The program conducted a study of all aspects 
of the work, and consulted experts in ergonomics prior to developing 
the new stamps. The new stamps will allow meat graders to apply 
significantly fewer stamp imprints while ensuring complete grade 
identification within the slaughter facility. The new stamps will be 
used in conjunction with grade labeled bags ensuring full grade 
identification throughout the marketing chain. The new stamps will also 
reduce the amount of meat branding ink placed on carcasses. Meat 
branding ink on calf, veal, lamb, and in processed beef products can 
produce discolored spots, which detract from appearances. The new 
certificates and stamps are now in use.
    The program will remove the following two outdated, no longer in 
use, official stamps: ``U.S.D.A. PRE-IDENT FEDERAL PURCHASE,'' and 
``U.S.D.A. EXAMINED AS CERTIFIED.''
    The program substitutes ``Certification service'' for ``Acceptance 
service''--in all locations--because not all work performed results in 
accepted products, and adds the newly-developed Quality Systems 
Certification and Contract Verification Programs, which are not 
currently defined under the regulations and require explanation. The 
Quality Systems Certification Program (QSCP) evaluates processes to 
assure that vendors produce acceptable products without evaluating end 
products on a fulltime basis. The Contract Verification Program 
evaluates contractually purchased products, and provides purchasers an 
evaluation of how accurately a contractor is adhering to contractual 
requirements. Both programs will be available on a single-use 
consultation-fee basis or on a retainer-fee basis for long term usage. 
In conjunction with the new QSCP service, the program developed a new 
identification mark. The program provides for the new mark to be used 
on advertising materials but not directly on retail packaging.

Comments

    On October 13, 1995, the Agency published in the Federal Register 
(60FR198) a proposed rule to amend the regulations adding new stamp 
imprints, services, and certificate forms, and removing no longer in 
use stamps and certificate forms which were not being used. This 
proposed rule was published allowing the opportunity for public comment 
as a means for providing full participation in the rulemaking process. 
Comments on this proposed rule were requested by November 12, 1995. 
During the 30-day comment period, the Agency received comments from one 
meat industry group.

Discussion of Comments

    The commenter expressed concern about stamp imprint legibility of 
the New stamp because of rough exterior surface fat. The Agency 
realizes that changing industry practices have resulted in a less 
desirable surface to apply a stamp imprint. However, after testing the 
new stamp on hundreds of thousands of carcasses, the Agency determined 
the new stamp applies a satisfactory imprint on surfaces that are 
sufficiently dry.
    The commenter expressed concern over the requirement of stamp users 
to institute the use of grade labeled bags, and the associated costs 
that must be passed to the consumer [use of the new stamp and grade 
labeled bags is restricted to facilities with in-house fabrication 
capability]. The high cost of implementing use of grade labeled bags 
was a major concern of other companies, but all are now marketing 
competitive priced products. The Agency shares concern about rising 
cost burdening consumers; the use of the new stamp will no longer 
require a full roller brand, and therefore, one less employment 
position in the grading process. This stamp will also significantly 
reduce meat branding ink use, and its associated discoloration problems 
in processed products. Reduced salaries and benefits, combined with 
lessened meat branding usage cost, will offset any cost of grade 
labeled bags. The Agency anticipates other cost savings through 
undiscovered new operational efficiencies. An additional benefit of 
using grade labeled bags is obtained through positive grade identity 
through the marketing chain. However, when intact carcasses are 
shipped, they will continue to be fully roller branded.

List of Subjects in 7 CFR Part 54

    Food grades and standards, Food labeling, Meat and meat products.

    For the reasons set forth in the preamble, 7 CFR Part 54 is amended 
as follows:

PART 54--MEATS, PREPARED MEATS, AND MEAT PRODUCTS (GRADING, 
CERTIFICATION, AND STANDARDS)

    1. The authority citation for Part 54 continues to read as follows:

    Authority: 7 U.S.C. 1622-1624.

    2. In Sec. 54.1, the definition ``Acceptance service'' is removed 
and four new definitions are added to read as follows:


Sec. 54.1  Meaning of words.

* * * * *
    Certification service. The service established and conducted under 
the regulations for the determination and certification or other 
identification of the compliance of products with specifications.
* * * * *
    Contract verification service. A program allowing institutions or 
other

[[Page 11506]]
large purchasers of commodity products to have those products compared 
to contractual requirements.
* * * * *
    Institutional Meat Purchase Specifications. Specifications 
describing various meat cuts, meat products, and meat food products 
derived from all livestock species, commonly abbreviated ``IMPS'', and 
intended for use by any meat procuring activity. For labeling purposes, 
only product certified by the Meat Grading and Certification Branch may 
contain the letters ``IMPS'' on the product label.
* * * * *
    Quality Systems Certification Program. A multifaceted program 
allowing all aspects of the livestock industry to have quality systems, 
or processes within quality systems, verified by AMS agent(s) to 
effectuate use of such quality systems to meet contractual 
requirements, or as a marketing tool.
* * * * *
    3. In Sec. 54.4, the words ``Acceptance service'' are removed in 
the third sentence and the words ``Certification service'' are added in 
their place, and a new sentence is added at the end of the section to 
read as follows:


Sec. 54.4  Kind of service.

    * * * The Contract Verification Service, under the regulations, 
provides wholesale buyers of noncertified commodity products a method 
of determining whether procurement(s) meet contractually specified 
requirements. The Quality Systems Certification Program, under the 
regulations, provides meatpackers, processors, producers, or other 
businesses in the livestock and meat trade the ability to have special 
processes or documented quality management systems verified.
    4. In Sec. 54.14, paragraphs (a) and (b) and figures 1 and 2 are 
revised to read as follows:


Sec. 54.14  Official certificates.

    (a) Agricultural Products Certificate Form LS-5-3 (Figure 1) is the 
official certificate for products under the regulations. The official 
grader shall prepare, sign, and issue an Agricultural Products 
Certificate Form LS-5-3 covering products for which that grader 
determined final specification compliance. Where weight or count is 
verified, the grader shall initial in the block titled ``Weights and 
Total Count Verified.''
    (b) Applicant Charges Certificate Form LS-5-5 (Figure 2) will be 
used to reduce paperwork for applicants assigned multiple graders. 
Assigned graders will complete one Form LS-5-5. Each grader will enter 
their code letters and signature in the appropriate location(s) to 
indicate certificate completion.

BILLING CODE 3410-02-P

[[Page 11507]]
[GRAPHIC] [TIFF OMITTED] TR21MR96.005



[[Page 11508]]
[GRAPHIC] [TIFF OMITTED] TR21MR96.006



3410-02-C

[[Page 11509]]

* * * * *
    5. Sec. 54.17 is amended by:
    (1) revising the text in paragraph (b),
    (2) revising paragraph (c),
    (3) revising paragraph (d),
    (4) revising paragraph (e),
    (5) revising paragraph (f),
    (6) revising paragraph (g), and
    (7) adding new paragraphs (h), (i), (j), and (k) to read as 
follows:


Sec. 54.17  Official identifications.

* * * * *
    (b) A shield enclosing the letters ``USDA'' as shown in Figure 1 
with the appropriate quality grade designation ``Prime,'' ``Choice,'' 
``Select,'' ``Good,'' ``Standard,'' ``Commercial,'' ``Utility,'' 
``Cutter,'' ``Canner,'' or ``Cull,'' as provided in the official United 
States Standards for Grades of Beef, Veal and Calf, Lamb, Yearling 
Mutton, and Mutton Carcasses and accompanied by the class designation 
``Bullock,'' ``Veal,'' ``Calf,'' ``Lamb,'' ``Yearling Mutton,'' or 
``Mutton,'' constitutes a form of official identification under the 
regulations to show the quality grade, and where necessary the class, 
undersaid standards, of steer, heifer, and cow beef, veal, calf, lamb, 
yearling mutton and mutton. The code identification letters of the 
grader performing the service will appear intermittently outside the 
shield.
* * * * *
    (c) A shield enclosing the letters ``USDA'' and the words ``Yield 
Grade,'' as in Figure 1, with the appropriate yield grade designation 
``1,'' ``2,'' ``3'', ``4,'' or ``5'' as provided in the Official United 
States Standards for Grades of Fresh Beef Carcasses and the Official 
United States Standards for Grades of Lamb, Yearling Mutton, and Mutton 
Carcasses constitutes a form of official identification under the 
regulations to show the yield grade under said standards. When yield 
graded, bull and bullock carcasses will be identified with the class 
designation ``Bull'' and ``Bullock,'' respectively. The code 
identification letters of the grader performing the service will appear 
outside the shield.

BILLING CODE 3410-02-M
[GRAPHIC] [TIFF OMITTED] TR21MR96.007


BILLING CODE 3410-02-C

    (d) Under the regulations, for carcass grade identification 
purposes only, a shield enclosing the letters ``USDA'' with the 
appropriate yield grade designation number of ``1,'' ``2,'' ``3,'' 
``4,'' or ``5'' between the ``US'' and ``DA'', with the appropriate 
quality grade designation of ``Prime'', ``Choice,'' or ``Select,'' 
below both as shown in Figure 1. The code identification letters for 
the grader performing the service will appear outside underneath the 
shield.

BILLING CODE 3410-02-M

[[Page 11510]]
[GRAPHIC] [TIFF OMITTED] TR21MR96.008



BILLING CODE 3410-02-C
    (e) Under the regulations, for yield grade identification purposes 
only, a shield enclosing the letters ``US'' on one side and ``DA'' on 
the other, with the appropriate Yield Grade designation number ``1,'' 
``2,'' ``3,'' ``4,'' or ``5'' as shown in Figure 1. The code 
identification letters for the grader performing the service will 
appear outside underneath the shield.

BILLING CODE 3410-02-M
[GRAPHIC] [TIFF OMITTED] TR21MR96.009



[[Page 11511]]

BILLING CODE 3410-02-C

    (f) Under the regulations, for quality grade identification only, a 
shield enclosing the letters ``US'' on one side and ``DA'' on the other 
with the appropriate Quality Grade designation of ``Prime,'' 
``Choice,'' or ``Select'' as shown in Figure 1. The code identification 
letters for the grader performing the service will appear outside 
underneath the shield.

BILLING CODE 3410-02-M
[GRAPHIC] [TIFF OMITTED] TR21MR96.010


BILLING CODE 3410-02-C

    (g) The letters ``USDA'' with the appropriate grade designation 
``1,'' ``2,'' ``3,'' ``4,'' ``Utility,'' or ``Cull'' enclosed in a 
shield as shown in Figure 1, as provided in the Official United States 
Standards for Grades of Pork Carcasses, constitutes a form of official 
identification under the regulations to show the grade under said 
standards of barrow, gilt, and sow pork carcasses.

BILLING CODE 3410-02-M
[GRAPHIC] [TIFF OMITTED] TR21MR96.011


BILLING CODE 3410-02-C

    (h) The following constitute forms of official identification under 
the regulations to show compliance of products:

BILLING CODE 3410-02-M

[[Page 11512]]
[GRAPHIC] [TIFF OMITTED] TR21MR96.012



BILLING CODE 3410-02-C

    Note: The letters ``RWX'', and ``UF'' shown in figures 1, and 2 
are examples, respectively, of the code identification letters of 
the official grader performing the service.

    (i) The following, as shown in Figure 1, constitutes official 
identification to show quality system certification:

BILLING CODE 3410-02-M

[[Page 11513]]
[GRAPHIC] [TIFF OMITTED] TR21MR96.013



BILLING CODE 3410-02-C

    (j) A shield-shaped ear tag enclosing the letters ``USDA'', the 
words ``Carcass Data Service,'' as shown below (Figure 1), and a serial 
number constitutes a form of official identification under the 
regulations for livestock and carcasses. Other information may appear 
on the backside of the ear tag at the option of the purchasers.

BILLING CODE 3410-02-M
[GRAPHIC] [TIFF OMITTED] TR21MR96.014


BILLING CODE 3410-02-C

    (k)(1) One device used by USDA graders is a rectangular, serially 
numbered, orange tag on which a shield encloses the letters ``USDA'' 
and the words ``Product Control'' as shown in Figure 1, constitutes a 
form of official identification under the regulations for meat and meat 
products.

BILLING CODE 3410-02-M

[[Page 11514]]
[GRAPHIC] [TIFF OMITTED] TR21MR96.015



BILLING CODE 3410-02-C

    (2) Official graders and supervisors of grading may use ``Product 
Control'' tags or other methods and devices as approved by the 
Administrator for the identification and control of meat and meat 
products which are not in compliance with the regulations or are held 
pending the results of an examination. Any such meat or meat product so 
identified shall not be used, moved, or altered in any manner; nor 
shall official control identification be removed, without the express 
permission of an authorized representative of the USDA.

    Dated: February 21, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-6645 Filed 3-20-96; 8:45 am]
BILLING CODE 3410-02-M