[Federal Register Volume 69, Number 185 (Friday, September 24, 2004)]
[Rules and Regulations]
[Pages 57163-57169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-21417]



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  Federal Register / Vol. 69, No. 185 / Friday, September 24, 2004 / 
Rules and Regulations  

[[Page 57163]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 57

[Docket No. PY-04-002]
RIN 0581-AB74


Regulations Governing the Inspection of Eggs

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: The Agricultural Marketing Service (AMS) is amending the 
regulations governing the inspection of eggs. The rule revises the 
regulations to clarify and simplify the regulations. This follows the 
earlier duplication and redesignation of the regulations.

DATES: Effective November 23, 2004.

FOR FURTHER INFORMATION CONTACT: Rex A. Barnes, Chief, Grading Branch, 
(202) 720-3271.

SUPPLEMENTARY INFORMATION:

Background

    The Egg Products Inspection Act (EPIA) authorizes the mandatory 
inspection of egg products operations and the mandatory surveillance of 
the disposition of shell eggs that are undesirable for human 
consumption. From its enactment in 1970, AMS administered the EPIA and 
its regulations in 7 CFR part 59.
    Congress amended the EPIA as part of the Food, Agriculture, 
Conservation and Trade Act Amendments of 1991 (Pub. L. 102-237) 
(hereafter referred to as ``the 1991 amendments''). To implement the 
1991 EPIA amendments, AMS proposed changes to 7 CFR parts 56 and 59 (57 
FR 48569, October 27, 1992) so that both regulations would contain the 
changes authorized by the 1991 amendments. Before AMS published a final 
rule, however, the Department consolidated food safety issues into the 
Food Safety and Inspection Service (FSIS) following enactment of the 
Federal Crop Insurance Reform and Department of Agriculture 
Reorganization Act of 1994 (Pub.L. 103-354). This included delegating 
responsibility to administer the EPIA egg products inspection functions 
to FSIS, while the shell egg surveillance functions remained with AMS. 
FSIS promulgated a final rule that implemented the 1991 amendments by 
revising 7 CFR part 59 (63 FR 45663, August 27, 1998).
    AMS then promulgated a final rule to duplicate and redesignate 
those portions of 7 CFR part 59 pertinent to shell egg surveillance as 
a new 7 CFR part 57 (63 FR 69968, December 17, 1998). FSIS promulgated 
a final rule to redesignate the remaining portions of 7 CFR part 59 and 
transfer them to 9 CFR part 590 (63 FR 72351, December 31, 1998). AMS 
is now revising the regulations in 7 CFR part 57 to clarify and 
simplify them following the duplication and redesignation of the 
regulations from 7 CFR part 59 to 7 CFR part 57.
    To facilitate and simplify the duplication and re-designation 
effort, the regulations were promulgated with as few editorial changes 
as possible. However, that action subsequently required AMS to review 
the regulations that were duplicated and redesignated as 7 CFR part 57 
and revise them to clarify the shell egg surveillance functions of the 
EPIA administrated by AMS.
    This action will complete that requirement. In addition, AMS is 
including in this rulemaking effort other non-substantive editorial 
revisions that were identified during the review. The amendments will 
update the regulations to comply with the current department 
organizational structure and add non-technical, grammatical, non-
substantive revisions.
    The amendments would not change how the requirements are 
administered, how specific requirements are implemented, or the 
responsibilities of program users. The amendments would make the 
requirements more accurate and simplify interpretation and 
implementation.
    For example:

--Punctuation, grammar, capitalization, abbreviations, legal phrases, 
terms, format, and style would be updated for consistency with current 
regulatory documents, the U.S. Government Printing Office Style Manual, 
and the Federal Register Document Drafting Handbook. Also, gender-
specific pronouns would be changed to gender-neutral pronouns 
consistent with current writing style
--Sections would be redesignated to make requirements easier to locate 
in the regulations
--Sections about nondiscrimination and political activity for Federal 
employees would be updated to reflect current requirements
--``Poultry Division'' would be changed to ``Poultry Programs'' to 
conform to organizational changes
--A definition for the term ``Agricultural Marketing Service or AMS'' 
would be added for consistency with other Agency regulations
--Duplicate and obsolete sections would be removed
--Inconsistencies in the wording of headings and sections would be 
clarified to assist program staff at all levels
--Administrative requirements that have been implemented in the program 
would be updated

Executive Order 12866

    This rule has been determined to be not significant for purposes of 
Executive Order 12866, and therefore, has not been reviewed by the 
Office of Management and Budget (OMB).

Regulatory Flexibility

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), AMS has considered the economic impact of this 
action on small entities as defined in the RFA (5 U.S.C. 601). This 
rule is non-technical in nature. It does not change regulatory 
requirements or the responsibilities of any party. Accordingly, AMS has 
determined that provisions of this rule would not have any economic 
impact on small entities.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
This rule will 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

[[Page 57164]]

prior to any judicial challenge to the provisions of this rule.

Paperwork Reduction Act

    The information collection requirements in Sec. Sec.  57.13, 
57.28(a), 57.110(a), 57.112, 57.200(a), 57.200(b), 57.320, 57.690, 
57.720(a)(2), 57.720(a)(3), 57.720(a)(4), 57.800, 57.905(a), 57.915(b), 
57.920, 57.930(f), 57.960, and 57.965 amended by this rule have been 
previously approved by OMB and assigned OMB control number 0581-0128 
under the Paperwork Reduction Act of 1995.
    AMS is committed to compliance with the Government Paperwork 
Elimination Act, which requires Government agencies in general to 
provide the public the option of submitting information or transacting 
business electronically to the maximum extent possible.

List of Subjects in 7 CFR Part 57

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


    For reasons set forth above, 7 CFR part 57 is amended as follows:

PART 57--INSPECTION OF EGGS (EGG PRODUCTS INSPECTION ACT)

    1. The authority citation for part 57 continues to read as follows:

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


    2. The undesignated center heading that precedes Sec.  57.1 is 
revised to read as follows:

General

    3. Section 57.1 is revised to read as follows:


Sec.  57.1  Definitions.

    For the purpose of the regulations in this part, words in the 
singular shall be deemed to import the plural and vice versa, as the 
case may demand. Unless the context otherwise requires, the following 
terms shall have the following meaning:
    Acceptable means suitable for the purpose intended by the 
Agricultural Marketing Service.
    Act means the applicable provisions of the Egg Products Inspection 
Act, as amended, (Pub. L. 91-597, 84 Stat. 1620 et seq.).
    Administrator means the Administrator of AMS of the Department or 
any other officer or employee of the Department to whom there has 
heretofore been delegated, or to whom there may hereafter be delegated 
the authority to act in the Administrator's stead.
    Adulterated means any egg under one or more of the following 
circumstances:
    (a) If it bears or contains any poisonous or deleterious substance 
which may render it injurious to health; but in case the substance is 
not an added substance, such article shall not be considered 
adulterated under this clause if the quantity of such substance in or 
on such article does not ordinarily render it injurious to health;
    (b)(1) If it bears or contains any added poisonous or added 
deleterious substance (other than one which is a pesticide chemical in 
or on a raw agricultural commodity; a food additive; or a color 
additive) which may in the judgment of the Secretary, make such article 
unfit for human food;
    (2) If it is, in whole or in part, a raw agricultural commodity and 
such commodity bears or contains a pesticide chemical which is unsafe 
within the meaning of section 408 of the Federal Food, Drug, and 
Cosmetic Act;
    (3) If it bears or contains any food additive which is unsafe 
within the meaning of section 409 of the Federal Food, Drug, and 
Cosmetic Act;
    (4) If it bears or contains any color additive which is unsafe 
within the meaning of section 706 of the Federal Food, Drug, and 
Cosmetic Act: Provided, that an article which is not otherwise deemed 
adulterated under paragraph (b)(2), (3), or (4) of this definition 
shall nevertheless be deemed adulterated if use of the pesticide 
chemical, food additive, or color additive, in or on such article, is 
prohibited by regulations of the Secretary in official plants;
    (c) If it consists, in whole or in part, of any filthy, putrid, or 
decomposed substance, or if it is otherwise unfit for human food;
    (d) If it has been prepared, packaged, or held under insanitary 
conditions whereby it may have become contaminated with filth, or 
whereby it may have been rendered injurious to health;
    (e) If it is an egg which has been subjected to incubation or the 
product of any egg which has been subjected to incubation;
    (f) If its container is composed, in whole or in part, of any 
poisonous or deleterious substance which may render the contents 
injurious to health;
    (g) If it has been intentionally subjected to radiation, unless the 
use of the radiation was in conformity with a regulation or exemption 
in effect pursuant to section 409 of the Federal Food, Drug, and 
Cosmetic Act; or
    (h) If any valuable constituent has been, in whole or in part, 
omitted or abstracted therefrom; or if any substance has been 
substituted, wholly or in part therefor; or if damage or inferiority 
has been concealed in any manner; or if any substance has been added 
thereto or mixed or packed therewith so as to increase its bulk or 
weight, or reduce its quality or strength, or make it appear better or 
of greater value than it is.
    Agricultural Marketing Service or AMS mean the Agricultural 
Marketing Service of the Department.
    Applicant means any interested party who requests any inspection 
service.
    Capable of use as human food means any egg, unless it is denatured, 
or otherwise identified, as required by these regulations to deter its 
use as human food.
    Chief of the Grading Branch means Chief of the Grading Branch, 
Poultry Programs, AMS.
    Class means any subdivision of a product based on essential 
physical characteristics that differentiate between major groups of the 
same kind, species, or method of processing.
    Commerce means interstate, foreign, or intrastate commerce.
    Condition means any characteristic affecting a products 
merchantability including, but not being limited to, the following: The 
state of preservation, cleanliness, soundness, wholesomeness, or 
fitness for human food of any product; or the processing, handling, or 
packaging which affects such product.
    Container or Package mean for shell eggs, any carton, basket, case, 
cart, pallet, or other receptacle.
    (a) Immediate container means any package or other container in 
which shell eggs are packed for household or other ultimate consumers.
    (b) Shipping container means any container used in packing an 
immediate container.
    Department means the United States Department of Agriculture.
    Egg means the shell egg of the domesticated chicken, turkey, duck, 
goose, or guinea. Some of the terms applicable to shell eggs are as 
follows:
    (a) Check means an egg that has a broken shell or crack in the 
shell but has its shell membranes intact and contents not leaking.
    (b) Clean and sound shell egg means any egg whose shell is free of 
adhering dirt or foreign material and is not cracked or broken.
    (c) Dirty egg or Dirties means an egg(s) that has an unbroken shell 
with adhering dirt, or foreign material.
    (d) Incubator reject means an egg that has been subjected to 
incubation and has been removed from incubation during the hatching 
operations as infertile or otherwise unhatchable.
    (e) Inedible means eggs of the following descriptions: Black rots,

[[Page 57165]]

yellow rots, white rots, mixed rots, sour eggs, eggs with green whites, 
eggs with stuck yolks, moldy eggs, musty eggs, eggs showing blood 
rings, and eggs containing embryo chicks (at or beyond the blood ring 
stage).
    (f) Leaker means an egg that has a crack or break in the shell and 
shell membranes to the extent that the egg contents are exposed or are 
exuding or free to exude through the shell.
    (g) Loss means an egg that is unfit for human food because it is 
smashed or broken so that its contents are leaking; or overheated, 
frozen, or contaminated; or an incubator reject; or because it contains 
a bloody white, large meat or blood spot, a large quantity of blood, or 
other foreign material.
    (h) Restricted egg means any check, dirty egg, incubator reject, 
inedible, leaker, or loss.
    Egg handler means any person, excluding the household consumer, who 
engages in any business in commerce that involves buying or selling any 
eggs or processing any egg products, or otherwise using any eggs in the 
preparation of human food.
    Federal Food, Drug, and Cosmetic Act means the Act so entitled, 
approved June 25, 1938 (52 Stat. 1040), and Acts amendatory thereof or 
supplementary thereto.
    Inedible egg products means dried, frozen, or liquid inedible egg 
products that are unfit for human consumption.
    Inspection means the application of such inspection methods and 
techniques as are deemed necessary by the responsible Secretary to 
carry out the provisions of the Egg Products Inspection Act and the 
regulations under this part.
    Interested party means any person financially interested in a 
transaction involving any surveillance inspection service.
    Label means a display of any printed, graphic, or other method of 
identification upon the shipping container, if any, or upon the 
immediate container, including but not limited to, an individual 
consumer package of eggs, or accompanying such product.
    National supervisor means:
    (a) The officer-in-charge of the surveillance inspection service; 
and
    (b) Other employee of the Department designated by the national 
supervisor.
    Nest-run eggs means eggs that have been 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.
    Office of inspection means the office of any inspector.
    Official certificate means any certificate prescribed by 
regulations of the Administrator for issuance by an inspector or other 
person performing official functions under this part.
    Official device means any device prescribed or authorized by the 
Secretary for use in applying any official mark.
    Official egg products processing plant means one or more buildings 
or parts thereof comprising a single plant in which the plant 
facilities and methods of operation therein have been approved by the 
Administrator of the Food Safety Inspection Service as suitable and 
adequate for the continuous inspection of egg products and in which 
inspection service is carried on.
    Official standards means the official U.S. standards of quality, 
grades, and weight classes for shell eggs maintained by and available 
from Poultry Programs, AMS.
    Person means any individual, partnership, association, business 
trust, corporation, or any organized group of persons, whether 
incorporated or not.
    Pesticide chemical, Food additive, Color additive, and Raw 
agricultural commodity mean the same for purposes of this part as under 
the Federal Food, Drug, and Cosmetic Act.
    Plant means any place of business where eggs are processed.
    Quality means the inherent properties of any product which 
determine its relative degree of excellence.
    Regional director means any employee of the Department in charge of 
the surveillance inspection service in a designated geographical area.
    Regulations means the provisions in this entire part and such U.S. 
Standards, Grades, and Weight Classes for Shell Eggs as may be in 
effect at the time grading is performed.
    Regulatory inspector or Inspector means any Federal employee or the 
employee of a cooperating agency to whom a license has been issued by 
the Secretary to make such inspections as required in Sec.  57.28 of 
these regulations.
    Regulatory officer or staff officer means staff assistants to 
regional directors who assist the regional director in administering 
the surveillance inspection service.
    Sampling means the act of taking samples of any product for 
inspection.
    Secretary means the Secretary of Agriculture or any other officer 
or employee of the Department to whom the authority to act in the 
Secretary's stead has been delegated.
    Service means the personnel who are actively engaged in the 
administration, application, and direction of the surveillance 
inspection service pursuant to the regulations in this part.
    Shell egg packer means any person engaged in the sorting of eggs 
into their various qualities.
    (a) Producer-packer means any person engaged in the sorting of eggs 
from their own production into their various qualities, either 
mechanically or by other means.
    (b) Grading station means any person engaged in the sorting of eggs 
from their own production and sources other than their own production 
into their various qualities, either mechanically or by other means.
    State means any State of the United States of America, the 
Commonwealth of Puerto Rico, the Virgin Islands of the United States, 
and the District of Columbia.
    State supervisor or Federal-State supervisor means any authorized 
and delegated individual who is in charge of the surveillance 
inspection program in a state.
    Surveillance inspection service means the official service within 
the Department having the responsibility for carrying out the 
provisions of the Egg Products Inspection Act under this part.
    Ultimate consumer means any household consumer, restaurant, 
institution, or any other party who has purchased or received shell 
eggs for consumption.
    Unclassified eggs means eggs that have been washed or are unwashed 
and show evidence of segregating or sizing.
    United States Standards, Grades, and Weight Classes for Shell Eggs 
(AMS 56) means the official U.S. standards, grades, and weight classes 
for shell eggs that are maintained by and available from Poultry 
Programs, AMS.
    Washed ungraded eggs means eggs that have been washed but not sized 
or segregated for quality.


Sec.  57.5  [Removed]

    3a. Section 57.5 is removed.

    4. The undesignated center heading that precedes Sec.  57.10 is 
removed.

    5. Section 57.10 is revised to read as follows:


Sec.  57.10  Administration.

    The Administrator shall perform, for and under the supervision of 
the Secretary such duties as the Secretary may require in the 
enforcement or administration of the provisions of the act and the 
regulations in this part. The Administrator is authorized to waive for 
limited periods any particular provisions of the regulations in this 
part to permit experimentation so that new procedures, equipment, 
grading,

[[Page 57166]]

inspection, and processing techniques may be tested to facilitate 
definite improvements and at the same time to determine full compliance 
with the spirit and intent of the regulations in this part. The AMS and 
its officers and employees shall not be liable in damages through acts 
of commission or omission in the administration of this part.

    6. Section 57.13 is revised to read as follows:


Sec.  57.13  Federal and State cooperation

    The Secretary shall, whenever determined necessary to effectuate 
the purposes of the Act, authorize the Administrator to cooperate with 
appropriate State and other governmental agencies in carrying out any 
provisions of the Egg Products Inspection Act and this part. In 
carrying out the provisions of the Act and the regulations in this 
part, the Secretary may conduct such examinations, investigations, and 
inspections as the Secretary determines practicable through any officer 
or employee of any such agency commissioned by the Secretary for such 
purpose. The Secretary shall reimburse the States and other agencies 
for the services rendered by them stated in the cooperative agreements 
signed by the Administrator and the duly authorized agent of the State 
or other agency.

    7. Section 57.17 is revised to read as follows:


Sec.  57.17  Nondiscrimination.

    The conduct of all services and the licensing of inspectors under 
these regulations shall be accomplished without discrimination as to 
race, color, national origin, sex, religion, age, disability, political 
beliefs, sexual orientation, or marital or family status.

    8. Section 57.22 is revised to read as follows:


Sec.  57.22  Basis of service.

    This part provides for inspection services pursuant to the Egg 
Products Inspection Act, as amended. Eggs shall be inspected in 
accordance with such standards, methods, and instructions as may be 
issued or approved by the Administrator. Inspection services shall be 
subject to supervision at all times by the applicable Federal-State 
supervisor, staff officer, regulatory officer, regional director, and 
national supervisor.

    9. Section 57.28 is amended by revising the section heading and 
paragraph (a) to read as follows:


Sec.  57.28  Inspections.

    (a) Periodic inspections shall be made of business premises, 
facilities, inventories, operations, transport vehicles, and records of 
egg handlers, and the records of all persons engaged in the business of 
transporting, shipping, or receiving any eggs. In the case of shell egg 
packers packing eggs for the ultimate consumer, such inspections shall 
be made a minimum of once each calendar quarter. Hatcheries are to be 
inspected a minimum of once each fiscal year.
* * * * *

    10. Section 57.35 is revised to read as follows:


Sec.  57.35  Eggs in commerce.

    (a)(1) For eggs that moved or are moving in interstate or foreign 
commerce, no State or local jurisdiction:
    (i) May require the use of standards of quality, condition, grade, 
or weight classes which are in addition to or different than the 
official standards; or
    (ii) Other than states in noncontiguous areas of the United States, 
may require labeling to show the State or other geographical area of 
production or origin.
    (2) This shall not preclude a State from requiring the name, 
address, and license number of the person processing or packaging eggs 
to be shown on each container.
    (b) Any State or local jurisdiction may exercise jurisdiction for 
the purpose of preventing the distribution of eggs for human food 
purposes that are in violation of this part or any other Federal acts 
or State or local laws consistent therewith.

    11. The undesignated center heading that precedes Sec.  57.45 is 
amended by removing the words ``and Egg Products.''

    12. Section Sec.  57.45 is amended by revising the section heading 
and paragraph (a) to read as follows:


Sec.  57.45  Prohibition on eggs not intended for use as human food.

    (a) No person shall buy, sell, or transport, or offer to buy or 
sell, or offer or receive for transportation in commerce, any eggs that 
are not intended for use as human food, unless they are denatured or 
decharacterized, unless shipped under seal as authorized in Sec.  
57.720(a) and identified as required by the regulations in this part.
* * * * *


Sec.  57.50  [Removed]

    13. The undesignated center heading that precedes Sec.  57.50 and 
Sec.  57.50 are removed.

    14. In Sec.  57.100, paragraph (a) is amended by removing the word 
``which'' and adding in its place the word ``that'' and paragraphs (e) 
and (f) are revised to read as follows:


Sec.  57.100  Specific exemptions.

* * * * *
    (e) The processing and sale of egg products by any producer from 
eggs of the producer's own flock when sold directly to a household 
consumer exclusively for use by such consumer and members of the 
consumer's household and the consumer's nonpaying guests and employees;
    (f) The sale of eggs by shell egg packers on the premises where the 
grading station is located, directly to household consumers for use by 
such consumer and members of the consumer's household and the 
consumer's nonpaying guests and employees, and the transportation, 
possession, and use of such eggs. Each such sale of ``restricted eggs'' 
shall be limited to no more than 30 dozen eggs;
* * * * *


Sec.  57.105  [Amended]

    15. In Sec.  57.105, paragraph (a) is amended by removing the first 
sentence.
    16. The undesignated center heading that precedes Sec.  57.110 is 
amended by revising the word ``Service'' to read ``Services''.

    17. Section 57.110 is revised to read as follows:


Sec.  57.110  Licensed inspectors.

    (a) Any person who is a Federal employee or the employee of a 
cooperating agency who possesses proper qualifications as determined by 
an examination for competency, and who is to perform surveillance 
inspection services, may be licensed by the Secretary as an inspector.
    (b) All licenses issued by the Secretary shall be countersigned by 
the Administrator or by any other designated official of the service.

    18. Section 57.112 is revised to read as follows:


Sec.  57.112  Suspension of license or authority; revocation.

    Pending final action by the Secretary, any person authorized to 
countersign a license to perform surveillance inspection services may, 
whenever such action is necessary to assure that any inspection service 
is properly performed, suspend or revoke any license to perform 
inspection services issued pursuant to this part by giving notice of 
such action to the respective licensee, accompanied by a statement of 
the reasons. Within 7 days after the receipt of the suspension or 
revocation notice and statement of reasons, the licensee may file an 
appeal in writing to

[[Page 57167]]

the Secretary, supported by any argument or evidence that the licensee 
may wish to offer as to why the license should not be suspended or 
revoked. After the expiration of the 7-day period and consideration of 
such argument and evidence, the Secretary will take appropriate action 
regarding the suspension or revocation. When no appeal is filed within 
the prescribed 7 days, the license is revoked or suspended.

    19. Section 57.114 is revised to read as follows:


Sec.  57.114  Surrender of license.

    Each license that is canceled, suspended, revoked, or expired shall 
immediately be surrendered by the licensee to the office of inspection 
serving the area in which the licensee is located.


Sec.  57.116  [Removed]

    20. Section 57.116 is removed.


Sec.  57.118  [Removed]

    21. Section 57.118 is removed.

    22. Section 57.119 is revised to read as follows:


Sec.  57.119  Political activity.

    Federal inspectors may participate in certain political activities, 
including management and participation in political campaigns as 
allowed by Federal regulation and AMS directives. Inspectors are 
subject to these rules while they are on leave with or without pay, 
including furlough; however the rules do not apply to cooperative 
employees not under Federal supervision and intermittent employees on 
the days they perform no service. Willfull violations of the political 
activity rules constitute grounds for removal from the service.

    23. Section 57.120 is revised to read as follows:


Sec.  57.120  Financial interest of inspectors.

    An inspector shall not inspect any product in which the inspector 
is financially interested.

    24. A new Sec.  57.130 is added to read as follows:


Sec.  57.130  Identification.

    Each inspector shall have in their possession at all times, and 
present while on duty upon request, the means of identification 
furnished by the Department.


Sec.  57.132  [Amended]

    25. Section 57.132 is amended by removing the words ``proper 
credentials'' and adding in their place the words ``identification 
furnished by the Department.''


Sec.  57.134  [Amended]

    26. In Sec.  57.134, the paragraph (a) designation is removed and 
paragraph (b) is removed.
    27. Section 57.200 is revised to read as follows:


Sec.  57.200  Records and related requirements.

    (a) Persons engaged in the business of transporting, shipping, or 
receiving any eggs in commerce, or holding such articles so received, 
and all egg handlers, including hatcheries, shall maintain for 2 years 
records showing the receipt, delivery, sale, movement, and disposition 
of all eggs handled by them, and upon the request of an authorized 
representative of the Secretary, shall permit the representative, at 
reasonable times, to have access to and to copy all such records.
    (b) All egg handlers shall maintain production records as approved 
by the Administrator. The records (bills of sale, inventories, 
receipts) shall show the name and address of the shipper and receiver, 
the date of the transaction, the quality of the eggs (graded eggs, 
nest-run eggs, dirties, checks, leakers, loss, inedible eggs), and the 
quantity of the eggs (amount). Producers who ship all of their 
production as nest-run eggs without segregation need only to maintain 
records indicating the amount of shell eggs shipped, date of shipment, 
and the receivers' name and address.


Sec.  57.220  [Amended]

    28. In Sec.  57.220, between the words ``when'' and ``inspection'' 
add the word ``surveillance.''

    29. The undesignated center heading that precedes Sec.  57.300 is 
amended by removing the words ``or Decision.''

    30. Section 57.300 is revised to read as follows:


Sec.  57.300  Who may request an appeal inspection.

    An appeal inspection may be requested by any interested party who 
is dissatisfied with the determination by an inspector of the class, 
quality, quantity, or condition of any product.


Sec.  57.310  [Amended]

    31. Section Sec.  57.310 is amended by removing the word ``who'' 
and adding in its place the word ``that;'' by adding the word 
``quality'' between the words ``class'' and ``quantities;'' and by 
removing the words ``other than in an official plant.''

    32. Section 57.320 is revised to read as follows:


Sec.  57.320  How to file an appeal.

    The request for an appeal inspection 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 
that is questioned, and the reason(s) for requesting the appeal 
service.


Sec.  57.330  [Amended]

    33. In Sec.  57.330, the section heading and the text are amended 
by removing the words ``grading or'' both times they appear.


Sec.  57.340  [Amended]

    34. Section 57.340 is amended by removing the words ``Poultry 
Division, Agricultural Marketing Service.''

    35. In Sec.  57.350, paragraph (a) is amended by removing the 
paragraph heading; paragraph (b) is revised to read as follows; and 
paragraph (c) is removed.


Sec.  57.350  Procedures for selecting appeal samples.

* * * * *
    (b) The appeal sample shall consist of product taken from the 
original sample containers plus an equal number of containers selected 
at random. When the original samples are not available or have been 
altered, such as removing the undergrades, the sample size shall be 
double the number of samples required in 7 CFR 56.4.


Sec.  57.360  [Amended]

    36. Section 57.360, is amended by removing the second, third, and 
fourth sentences.

    37. Section 57.370 is revised to read as follows:


Sec.  57.370  Cost of appeals.

    The costs of an appeal inspection shall be borne by the appellant 
on a fee basis at rates set forth in 7 CFR 56.46, plus any travel and 
additional expenses. If the appeal inspection or review of an 
inspector's decision discloses that a material error was made in the 
original determination, no fee or expense will be charged.


Sec.  57.410  [Removed]

    38. The undesignated center heading that precedes Sec.  57.410 and 
Sec.  57.410 are removed.


Sec.  57.426  [Amended]

    39. In Sec.  57.426, the first sentence is amended by removing all 
words after the word ``examination'', and the second sentence is 
amended by removing the

[[Page 57168]]

words ``equipment, utensil, room, or compartment''.


Sec.  57.504  [Removed]

    40. Section 57.504 is removed.

    41. Section 57.690 is revised to read as follows:


Sec.  57.690  Person required to register.

    Egg handlers, except for producer-packers with an annual egg 
production from a flock of 3,000 hens or less, who grade and pack eggs 
for the ultimate consumer, and hatcheries, are required to register 
with the Department by furnishing their name, place of business, and 
such other information requested on the registration form available 
from the Department. Completed forms shall be sent to the addressee 
indicated on the form. Persons above who are establishing a business 
will be required to register before they start operations.

    42. Section 57.720 is amended by:
    a. Amending paragraphs (a)(1) and (2);
    b. Amending paragraph (a)(3) by adding the word ``By'' at the 
beginning of the paragraph and by removing the section number 
``57.504(c)'' and adding in its place the section number 
``57.720(a)(2);''
    c. Amending paragraph (a)(4) by adding the word ``processing'' 
after the word ``products'' both times it appears;
    d. Removing paragraph (a)(5); and
    e. Amending paragraph (b)(1) by adding the word ``processing'' 
after the word ``products.''
    The revision reads as follows:


Sec.  57.720  Disposition of restricted eggs.

    (a) * * *
    (1) By shipping directly or indirectly to an official egg products 
processing plant for segregation and processing, if a check or dirty 
and if labeled in accordance with Sec.  57.800. Inedible and loss eggs 
shall not be intermingled in the same container with checks and 
dirties.
    (2) By destruction and identification in a manner approved by the 
Administrator.
    (i) Loss and inedible eggs shall be crushed and shall be placed in 
a container containing a sufficient amount of approved denaturant or 
decharacterant, such as FD&C brown, blue, black, or green colors, meat 
and fish by-products, grain and milling by-products, or any other 
substance, as approved by the Administrator, that will accomplish the 
purposes of this section. The approved denaturant or decharacterant 
substance shall be dispersed through the product in amounts sufficient 
to give the product a distinctive appearance or odor.
    (ii) The denatured and decharacterized product shall be labeled as 
required in Sec. Sec.  57.840 and 57.860.
* * * * *


Sec.  57.760  [Removed]

    43. Section 57.760 is removed.


Sec.  57.800  [Amended]

    44. Section 57.800 is amended by adding the word ``Processing'' 
after the words ``USDA Egg Products'', and by removing the word 
``Restricted'' after the words ``incubator rejects, or'' and adding in 
its place the word ``Unclassified.''


Sec.  57.900  [Amended]

    45. In Sec.  57.900, paragraph (a) is amended by removing the 
second sentence.


Sec.  57.905  [Amended]

    46. In Sec.  57.905, paragraph (a) is amended by adding the word 
``Processing'' between the words ``USDA'' and ``Plant'' and also 
between the words ``products'' and ``plant.''


Sec.  57.915  [Amended]

    47. Section 57.915 is amended in paragraph (b) introductory text by 
removing the word ``which'' in the first sentence and adding in its 
place the word ``that'', and in paragraph (b)(1) by removing the word 
``Country'' and adding in its place the words ``Name of Country''.

    48. Section 57.920 is revised to read as follows.


Sec.  57.920  Importer to make application for inspection of imported 
eggs.

    Each person importing any eggs shall make application for 
inspection upon PY Form 222-Import Request, to the Chief, Grading 
Branch, Poultry Programs, AMS, U.S. Department of Agriculture, 
Washington, DC 20250, or to the Poultry Programs, Grading Branch office 
nearest the port where the product is to be offered for importation. 
Application shall be made as far in advance as possible prior to the 
arrival of the product, except in the case of product exempted from 
inspection by Sec.  57.960. Each application shall state the 
approximate date of product arrival in the United States, the name of 
the ship or other carrier, the country from which the product was 
shipped, the destination, the quantity and class of product, and the 
point of first arrival in the United States.


Sec.  57.925  [Amended]

    49. In Sec.  57.925, paragraph (b) is amended by removing the word 
``which'' and adding in its place the word ``that'' and removing the 
words ``analysis or''.


Sec.  57.930  [Amended]

    50. Section 57.930 is amended by:
    a. Amending paragraph (c) by removing the words ``U.S. Department 
of Agriculture'' and adding in their place the word ``Department'' in 
the first sentence, and in the text of the notice, by removing the word 
``Division'' and adding in its place the word ``Programs'';
    b. Removing the words ``U.S. Department of Agriculture'' and adding 
in their place the word ``Department'' in paragraphs (d), (e), and (f); 
and
    c. Amending paragraph (f) by removing the words ``by telegraph''.


Sec.  57.945  [Amended]

    51. Section 57.945 is amended by:
    a. Amending paragraph (a) by removing the word ``which'' and adding 
in its place the word ``that;''
    b. Amending paragraph (b) by removing the words ``U.S. Department 
of Agriculture'' and adding in their place the word ``Department;'' and
    c. Amending paragraph(c) by removing the word ``which'' and adding 
in its place the word ``that.''


Sec.  57.950  [Amended]

    52. In Sec.  57.950, paragraph (b) is amended by adding the word 
``processing'' after the word ``products.''
    53. In Sec.  57.955, paragraph (a) introductory text is revised to 
read as follows:


Sec.  57.955  Labeling of shipping containers of eggs for importation.

    (a) Shipping containers of foreign product offered for importation 
shall bear a label, printed in English, showing:
* * * * *


Sec.  57.960  [Amended]

    54. In Sec.  57.960, the first sentence is amended by removing the 
third word ``which'' and adding in its place the word ``that.''


Sec.  57.965  [Amended]

    55. Section 57.965 is amended by removing the second word ``which'' 
in the second place it appears and adding in its place the word 
``that'', and by removing the words ``United States Department of 
Agriculture'' and adding in their place the word ``Department.''


Sec.  57.970  [Amended]

    56. Section 57.970 is amended by removing the word ``which'' and 
adding in its place the word ``that.''


Sec.  57.1000  [Amended]

    57. Section 57.1000 is amended by:
    a. Amending paragraph (b) introductory text by removing the words 
``in his discretion'' and

[[Page 57169]]

    b. Amending paragraph (b)(2) by adding the word ``a'' between the 
words ``waives'' and ``hearing.''

    Dated: September 20, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-21417 Filed 9-23-04; 8:45 am]
BILLING CODE 3410-02-P