[Federal Register Volume 85, Number 210 (Thursday, October 29, 2020)]
[Rules and Regulations]
[Pages 68640-68685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20151]



[[Page 68639]]

Vol. 85

Thursday,

No. 210

October 29, 2020

Part II





 Department of Agriculture





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Food Safety and Inspection Service





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9 CFR Parts 416, 417, 500, et al.





Egg Products Inspection Regulations; Final Rule

  Federal Register / Vol. 85 , No. 210 / Thursday, October 29, 2020 / 
Rules and Regulations  

[[Page 68640]]


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DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

9 CFR Parts 416, 417, 500, 590, and 591

[Docket No. FSIS-2005-0015]
RIN 0583-AC58


Egg Products Inspection Regulations

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: The Food Safety and Inspection Service (FSIS) is amending the 
egg products inspection regulations to require official plants that 
process egg products (herein also referred to as ``egg products 
plants'' or ``plants'') to develop and implement Hazard Analysis and 
Critical Control Point (HACCP) Systems and Sanitation Standard 
Operating Procedures (Sanitation SOPs) and to meet other sanitation 
requirements consistent with FSIS's meat and poultry regulations.

DATES: This rule is effective December 28, 2020, except for:
    The amendments to 9 CFR 590.146, 590.149(a), 590.500, 590.502, 
590.504(f), (g), (h), (i), (j), (k), (l), (m), (n), (p), and (q), 
590.506, 590.508, 590.510(a), (c)(1) and (c)(3), and (d), 590.515, 
590.516 section heading and (a), 590.520, 590.522, 590.530, 590.532, 
590.534, 590.536, 590.538, 590.539, 590.540, 590.542, 590.544, 590.546 
through 590.550, 590.552, 590.560, 590.570(a), 591.1(a) and 591.2(b), 
which are effective October 29, 2021; and
    The amendments to 9 CFR 417.7(b), 590.149(b) and (c), 590.504(d)(1) 
and (2), 590.504(o)(1), (2), and (3), 590.570(b), 590.575, 
590.580(b)(1), 591.1(b), and 591.2(a) and (c), which are effective 
October 31, 2022.
    Comment date: FSIS is seeking comments on the Egg Products Hazards 
and Controls Guide. Commenters may use the Egg Products Hazards and 
Controls Guide during the comment period. Comments must be received by 
December 28, 2020.

ADDRESSES: Comments may be submitted by one of the following methods:
     Federal eRulemaking Portal: This website provides the 
ability to type short comments directly into the comment field on this 
web page or attach a file for lengthier comments. Go to http://www.regulations.gov. Follow the on-line instructions at that site for 
submitting comments.
     Mail, including CD-ROMs, etc.: Send to Docket Clerk, U.S. 
Department of Agriculture, Food Safety and Inspection Service, 1400 
Independence Avenue SW, Mailstop 3758, Room 6065, Washington, DC 20250-
3700.
     Hand- or courier-delivered submittals: Deliver to 1400 
Independence Avenue SW, Room 6065, Washington, DC 20250-3700.
     Instructions: All items submitted by mail or electronic 
mail must include the Agency name and docket number FSIS-2005-0015. 
Comments received in response to this docket will be made available for 
public inspection and posted without change, including any personal 
information, to http://www.regulations.gov.
     Docket: For access to background documents or comments 
received, call (202) 720-5627 to schedule a time to visit the FSIS 
Docket Room at 1400 Independence Avenue SW, Room 6065, Washington, DC 
20250-3700.

FOR FURTHER INFORMATION CONTACT: Victoria Levine, Program Analyst, 
Office of Policy and Program Development by telephone at (202) 690-
3184.

SUPPLEMENTARY INFORMATION:

Executive Summary

    On February 13, 2018, FSIS published a proposed rule to amend the 
egg products inspection regulations (9 CFR part 590 and other relevant 
parts) to require egg products plants to develop and implement Hazard 
Analysis and Critical Control Point (HACCP) Systems and Sanitation 
Standard Operating Procedures (Sanitation SOPs) and to comply with the 
Sanitation Performance Standards (SPS), in accordance with the 
regulations in 9 CFR parts 416 and 417 (83 FR 6314). Additionally, FSIS 
proposed:
     To eliminate prescriptive regulations, including those 
requiring prior approval by FSIS of egg products plant drawings, 
specifications, and equipment, and replace outdated pasteurization 
requirements with a performance standard requiring that official plants 
process egg products to be edible without additional preparation to 
achieve food safety.
     To change the Agency's interpretation of ``continuous 
inspection'' to provide for the presence of inspectors at official 
plants at the same frequency that meat and poultry processing 
establishments are provided inspectors, i.e., at least once per shift.
     To require egg products plants to maintain control of egg 
products that have been sampled and tested for microbiological public 
health hazards until the test results become available.
     To apply the egg products regulations to egg substitutes 
and freeze-dried products and require inspection of these products.
     To eliminate the prohibition on the use of irradiated 
shell eggs in the production of egg products and food products 
containing them.
     To make egg products labeling requirements, including 
requirements for generically approved labeling and special handling 
labels, more consistent with the requirements for meat and poultry 
products, as well as to make changes to labeling requirements for shell 
eggs consistent with those in the Food and Drug Administration (FDA) 
regulations.
     To align the import requirements for egg products more 
closely with the import requirements for meat and poultry products.
     To change organizational terms and job titles that appear 
in the regulations but are no longer used by FSIS.
     To replace the rules of practice governing enforcement 
procedures for egg product plants with those that apply to meat and 
poultry product establishments under 9 CFR part 500. And,
     To add the undesignated paragraph defining the term 
Program employee and eliminate the undesignated paragraph defining the 
term Eggs of current production.
    This final rule adopts all the proposed revisions to the egg 
products inspection regulations, except for the two proposed changes to 
the regulatory definitions. First, FSIS is not eliminating the 
definition for the term Eggs of current production from 9 CFR 590.5. 
Second, the Agency is not adding the undesignated paragraph that 
defines Program Employee to 9 CFR 590.5.

Cost and Benefits

    Costs attributable to the final rule are those associated with the 
development and implementation of HACCP plans and Sanitation SOPs. The 
impact of the costs is mitigated by the fact that 93 percent of egg 
products plants already use a written HACCP plan to address at least 
one production step in their process.
    The benefits of the final rule include providing greater 
flexibility and incentives for innovation through reductions in 
paperwork and eliminating unnecessary requirements. In addition, plants 
voluntarily meeting HACCP requirements and also complying with current 
prescriptive regulations are expected to reduce costs, because they 
will be operating solely under HACCP requirements. Plants will also 
benefit from a reduction in overtime and holiday pay paid to FSIS due 
to changes in inspection coverage.

[[Page 68641]]



            Table 1--Summary of Estimated Benefits and Costs
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Industry Benefits............   Elimination of requirements for
                                requests of approval for waivers,
                                blueprints, and labels.
                                A HACCP system allows for long-
                                term efficiency gains resulting from
                                removing barriers to innovation found in
                                the existing command and control system.
                                Cost savings from the reduction
                                of overtime and holiday pay paid to FSIS
                                inspectors for inspection.
Agency Benefits..............   Long-term benefits from improved
                                inspection personnel coverage. Egg
                                products inspection personnel will now
                                be trained under a HACCP system and can
                                be positioned for inspection in
                                traditional meat and poultry
                                establishments.
                                Salary savings for the reduction
                                in inspection at egg products plants.
                                Savings from the reduction or
                                elimination of waiver, blueprints, no
                                objection letter, and label approval
                                submissions to FSIS from industry.
Industry Costs...............   Cost to the plant to create
                                HACCP plans and Sanitation SOPs.
                                Costs to the plant for
                                additional HACCP recordkeeping and
                                monitoring.
                                Cost to the plant for training
                                personnel in the HACCP system.
Agency Costs.................   Costs for training inspection
                                program personnel in HACCP and egg
                                products inspection.
                                Costs to the Agency to provide
                                relief inspectors while egg products
                                plants inspectors are being trained.
                                Additional travel costs for
                                inspection personnel on patrol
                                assignments in egg products plants.
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                               Summary of Estimated Quantified Benefits and Costs
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                                                                        Low             Mid            High
----------------------------------------------------------------------------------------------------------------
Benefits ($1,000)...............................................           5,893           5,893           5,893
Costs ($1,000)..................................................         2,506.3         4,826.6         7,163.7
Net Benefits ($1,000)...........................................        -1,270.6         1,066.5         3,386.8
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Figures were annualized over 10 years at the 7 percent discount rate. Numbers may not sum due to rounding.

Table of Contents

I. Background
II. Comments and Responses
    A. Continuous Inspection
    B. HACCP, Sanitation SOPs, and Other Sanitation Requirements
    C. Control of Pathogens in Egg Products
    D. Labeling
    E. Blueprints
    F. Freeze-Dried Egg Products and Egg Substitutes
    G. Exempted Plant Status
    H. Eggs of Current Production
    I. Implementation Timeframe and Training
    J. Radioactive Content of Irradiated Egg Products
    K. Temperature and Labeling Requirements
    L. Dietary Supplements
    M. Hard-Cooked Eggs
    N. Cooking as a Lethality Step
    O. Egg Breaking: Proposed Change to 9 CFR 590.522
    P. Immersion-Type Shell Egg Washers
    Q. Equivalency of Foreign Inspection Systems
    R. Draft FSIS Compliance Guideline for Small and Very Small 
Plants That Produce Ready-To-Eat (RTE) Egg Products
    S. Shipment of Unpasteurized Egg Products: Proposed 9 CFR 
590.410(c)
    T. Proposed 9 CFR 590.504(d)(2)
    U. Cooked, Salted, and Preserved Eggs
    V. Health and Hygiene
    W. Light
    X. Ventilation
    Y. Egg Handling: 21 U.S.C. 1034(d) and 1034(e)(1)
    Z. Non-Compliance Reports
    AA. Water Supply and Water, Ice, and Solution Reuse
    BB. Hold and Test (9 CFR 590.504(e))
    CC. Plant Testing
    DD. 9 CFR Part 430
    EE. Costs
    FF. Food Ingredients Used During the Production of Egg Products
III. Executive Orders 12866, 13563, and 13771 and the Regulatory 
Flexibility Act
IV. Paperwork Reduction Act
V. Executive Order 12988, Civil Justice Reform
VI. E-Government Act Compliance
VII. Executive Order 13175
VIII. USDA Nondiscrimination Statement
IX. Congressional Review Act
X. Additional Public Notification

I. Background

Miscellaneous information

    The implementation of HACCP will eliminate many of the prescriptive 
regulations that lead to the issuance of waivers and no objection 
letters. Therefore, plants implementing HACCP earlier than two years 
after publication of this rule in the Federal Register will have their 
new technology waivers and no objection letters in effect at that time 
revoked on the date they implement HACCP. All other new technology 
waivers and no objection letters currently in effect will be revoked 
two years after this final rule is published in the Federal Register.
    Egg substitutes and freeze-dried egg products will fall under 
FSIS's jurisdiction three years after this final rule is published in 
the Federal Register. Plants producing egg substitutes already under 
FSIS inspection because they also make inspected and passed egg 
products should have little difficulty meeting the Agency's regulatory 
requirements. For plants producing egg substitutes that are not 
currently under FSIS inspection, the Agency will provide additional 
information about how to meet the regulatory requirements prior to the 
effective date of this portion of this final rule.
    Official plants may begin operating under HACCP and Sanitation SOP 
regulations at earlier dates, provided FSIS has verified that they are 
in compliance with the regulations. More information on implementation 
is provided below.
    FSIS is discontinuing the PEPRLab Program 60 days after this final 
rule is published in the Federal Register.

Proposed Rule

    On February 13, 2018, FSIS published a proposed rule to amend the 
egg products inspection regulations (9 CFR part 590 and other relevant 
parts) to require egg products plants to develop and implement Hazard 
Analysis and Critical Control Point (HACCP) Systems and Sanitation 
Standard Operating Procedures (Sanitation SOPs) and to comply with the 
Sanitation Performance Standards (SPS), in accordance with the 
regulations in 9 CFR parts 416 and 417 (83 FR 6314). The proposed rule 
also required egg products to be produced to be edible without 
additional preparation to achieve food safety. In addition to these 
requirements, the proposed rule:
     Changed the Agency's interpretation of ``continuous 
inspection'' to provide for the presence of inspectors at official 
plants at the same frequency that meat and poultry

[[Page 68642]]

processing establishments are provided inspectors, i.e., at least once 
per shift.
     Provided for generic approval for certain egg products 
labels.
     Made changes to labeling requirements for shell eggs 
consistent with those in FDA's regulations.
     Required special handling instructions on egg products.
     Eliminated the requirements for prior approval by FSIS of 
egg products plant drawings, specifications, and equipment. And
     Incorporated egg products plants into the coverage of the 
``Rules of Practice'' that the Agency follows when initiating 
administrative enforcement actions.
    The proposed rule's comment period closed on June 13, 2018, 120 
days after its publication. After reviewing comments on the proposed 
rule, FSIS is finalizing, with two exceptions, the provisions in the 
February 2018 proposed rule.
    In the proposed rule, FSIS proposed to eliminate the definition for 
the term Eggs of current production (83 FR 6332). As noted in the 
proposed rule, ``Eggs of current production'' are those eggs that have 
moved through the usual marketing channels since the time they were 
laid and are not in excess of 60 days old. The term is an indicator of 
quality, not food safety, and, FSIS thought, might unduly restrict the 
availability of edible eggs. In response to comments opposed to 
removing the term, however, FSIS has decided to retain it in this final 
rule.
    Second, FSIS is not adding the proposed undesignated paragraph that 
defines Program Employee to 9 CFR 590.5 (83 FR 6333). FSIS uses the 
phrase ``inspection program personnel'' rather than ``program 
employee'' to refer to inspectors and other field personnel. Therefore, 
instead of adding the undesignated paragraph Program employee to 590.5, 
FSIS is adding to 9 CFR 590.5 the undesignated paragraph ``Inspection 
program personnel'' because it is specific to FSIS field personnel. 
FSIS also is amending the following regulations to replace the words 
``program employee,'' ``import inspection personnel,'' ``program 
inspector,'' ``official program personnel,'' or ``import inspector'' 
with ``inspection program personnel'':

9 CFR 590.118
9 CFR 590.120
9 CFR 590.136
9 CFR 590.310
9 CFR 590.340
9 CFR 590.435
9 CFR 590.504
9 CFR 590.915
9 CFR 590.925
9 CFR 590.940
9 CFR 590.945

Technical Corrections

    This final rule makes the following technical changes to the 
proposed to correct inadvertent errors in the proposed regulatory text:
     In paragraph (b) of 9 CFR 417.7, the word ``processing'' 
was inadvertently omitted from the existing regulatory text. The 
paragraph now reads, ``The individual performing the functions listed 
in paragraph (a) of this section shall have successfully completed a 
course of instruction in the application of the seven HACCP principles 
to meat, poultry, or egg products processing, including a segment on 
the development of a HACCP plan for a specific product and on record 
review.''
     A commenter noted that FSIS inadvertently omitted language 
in the definition of ``egg product'' in 9 CFR 590.5. The language has 
been restored and is discussed elsewhere in this document.
     The final language for 9 CFR 590.40 concerning egg 
products not intended for human food no longer contains a provision for 
shipping such product under seal, as authorized in 9 CFR 590.504(c), 
because in the final rule, 9 CFR 590.504(c)(1) no longer requires 
denatured or decharacterized egg products to move under Government seal 
and certificate.
     FSIS is correcting two typographical errors found in 9 CFR 
590.149. Paragraph (a) references Sec.  591.1(a)(1) of this chapter. 
The correct citation is Sec.  591.1(a) of this chapter. Paragraph (b) 
references Sec.  591.1(a)(1) of this chapter. The correct citation is 
Sec.  591.1(a) of this chapter.
     FSIS is correcting a typographical error found in 9 CFR 
590.411. Paragraph (b) references 9 CFR 412.2. The correct citation is 
9 CFR 412.1.
     FSIS is correcting an error found in 9 CFR 590.412. 
Paragraph (a) states that official plants must comply with the 
requirements in 9 CFR 412.2, except as otherwise provided in this part. 
Section 412.2 permits the approval of generic labels. Official plants 
do not have to have generically approved labels. Therefore, the Agency 
is changing the word ``must'' in paragraph (a) to ``may'' and removing 
the phrase ``except as otherwise provided in this part.''
     FSIS is making the same technical correction to 9 CFR 
590.415 and 590.504(d)(2). Both regulations refer to a performance 
standard that is different than the one that was proposed in 9 CFR 
590.570. As proposed, they stated that the relevant standard is 
``sufficient to reduce Salmonella.'' The performance standard that will 
correctly reflect what was proposed in 9 CFR 590.570 is ``sufficient to 
produce egg products that are edible without additional preparation to 
achieve food safety.''
     FSIS is making a second technical correction to clarify 
the regulations at 9 CFR 590.504(d)(2). The paragraph states that 
shipments of unpasteurized egg products shipped from one official plant 
to another official plant for pasteurization or treatment must be 
sealed in cars or trucks. FSIS is amending the paragraph to clarify 
that the official plant is responsible for sealing the car or truck. 
That the plant is responsible for sealing a shipment of unpasteurized 
egg products is consistent with the labeling requirements for such 
shipments, proposed (and made final) in 9 CFR 590.410(c).
     FSIS is making a change to 9 CFR 590.424(b) so that the 
egg products reinspection procedures are consistent with those in the 
meat regulations, are consistent with the new interpretation of the 
requirement for continuous inspection found in this final rule, and do 
not unduly restrict the formation of patrol assignments in egg products 
plants. Unlike the current egg products regulations, which require 
reinspection of egg products at the time they are brought into the 
official plant, the meat regulations permit products to be received in 
an official establishment during the absence of inspection program 
personnel. Such products are subject to reinspection by inspection 
program personnel at the official establishment in such manner and at 
such times as may be deemed necessary to assure compliance with the 
regulations in Subchapter A of Chapter III, Title 9 of the Code of 
Federal Regulations. Paragraph (b) of 9 CFR 590.424 will permit the 
reinspection of egg products brought into an egg products plant under 
similar circumstances.
     FSIS is correcting a typographical error found in proposed 
9 CFR 590.514(c)(2). The proposed paragraph stated that ``Denatured or 
decharacterized inedible egg products may be shipped from an official 
plant for industrial use or animal food, provided that it is properly 
packaged, labeled, and segregated, and inventory controls are 
maintained.'' It should instead read, ``Undenatured egg products or 
inedible egg products that are not decharacterized may be shipped from 
an official plant for industrial use or animal food, provided that they 
are properly packaged, labeled, and segregated, and inventory controls 
are maintained.'' This will allow official

[[Page 68643]]

plants to ship inedible egg products that look like wholesome egg 
products to entities desirous of such products, while at the same time 
ensuring that they are not diverted for human food use.
     In the preamble to the proposed rule, FSIS discussed in 
detail eliminating the regulations at 9 CFR 590.515, regarding egg 
cleaning operations, as they are inconsistent with the proposed 
requirements for Sanitation Standard Operating Procedures (Sanitation 
SOPs). However, the Agency inadvertently failed to include an 
instruction in the regulatory text to do so. Nonetheless, FSIS received 
considerable support for its proposal to require official plants to 
develop and implement Sanitation SOPs and eliminate current regulatory 
provisions that are inconsistent with them. The Agency is therefore 
removing 9 CFR 590.515 from the egg products inspection regulations.
     FSIS is making a technical correction in the final version 
of paragraphs (b)(1) and (b)(2) of 9 CFR 590.504 so that they read the 
same as the current regulations. The proposed rule incorrectly removed 
the word ``Eggs'' from these regulations. In this final rule, the 
Agency is including the words ``Eggs and'' at the beginning of 
paragraph (b)(1) to read as follows: ``Eggs and egg products are 
subject to inspection in each official plant processing egg products 
for commerce.'' It is also adding ``eggs and'' to paragraph (b)(2) so 
that it reads: ``Any eggs and egg products not processed in accordance 
with the regulations in this part of part 591 or that are not otherwise 
fit for human food will be removed and segregated.''
     FSIS is making a technical correction to 9 CFR 590.570. 
Section 590.570, Control of pathogens in egg products, applies only to 
pasteurized egg products, not unpasteurized products. To clarify this, 
FSIS is changing the title and regulatory text of 9 CFR 590.570 by 
adding the word ``pasteurized'' to it to make clear that that 
regulation requires pasteurized product, not unpasteurized product, to 
be produced to be edible without additional preparation to achieve food 
safety. Unpasteurized egg products may continue to be sent to other 
official plants for further processing to achieve food safety; they may 
not, however, enter commerce (9 CFR 590.415). The title of 9 CFR 
590.570 will read Control of pathogens in pasteurized egg products. 
FSIS is also adding the word ``pasteurized'' to the first and second 
sentences of 9 CFR 590.570 for the same reason.
     FSIS is making a technical correction to 9 CFR 590.590. 
The proposed regulation referred to a performance standard that is 
different than the one that was proposed in 9 CFR 590.570. As proposed, 
it stated that the relevant standard is ``heat or another lethality 
treatment to produce a ready-to-eat product.'' The language that will 
correctly reflect what was proposed in 9 CFR 590.570 is ``Irradiated 
shell eggs used to produce pasteurized egg products must be used in 
conjunction with heat or another lethality treatment sufficient to 
produce egg products that are edible without additional preparation to 
achieve food safety.''
     FSIS is making a technical correction to 9 CFR 590.910. On 
November 27, 2019, FSIS published a final rule amending its regulations 
to remove lists of foreign countries eligible to export meat, poultry, 
or egg products to the United States, and, instead, maintain such lists 
on its website (84 FR 65265). That final rule amended 9 CFR 590.910 and 
its title. FSIS is amending 9 CFR 590.510 and its title in this final 
rule to match the language newly amended by the Publication Method for 
Lists of Foreign Countries Eligible To Export Meat, Poultry, or Egg 
Products to the United States final rule (84 FR 65269). FSIS also made 
two technical corrections in the regulatory text. First, the Agency 
removed the word ``continuous'' before the phrase ``Government 
inspection'' in the first sentence of paragraph (a) to be consistent 
with the language used in this final rule. Second, FSIS removed the 
second to last sentence of paragraph (a) allowing the survey of the 
foreign inspection system to occur more expediently by payment by the 
interested Government agency in the foreign country of the travel 
expenses incurred in making the survey.
     FSIS is making technical corrections to the titles of 9 
CFR 590.925, 590.930, and 590.945. Each title refers to ``eggs.'' The 
regulatory text, however, refers only to egg products. Removing the 
word ``eggs'' from these titles will eliminate any confusion that may 
exist regarding what product is being regulated.

Guidance for Small and Very Small Plants

    FSIS is also announcing the availability of guidance to help small 
and very small plants producing egg products meet the pasteurization 
requirements proposed in this rulemaking. When FSIS published the 
proposed rule, FSIS posted a draft of the FSIS Compliance Guideline for 
Small and Very Small Plants that Produce Ready-to-Eat (RTE) Egg 
Products on its website and requested comments on it. FSIS has revised 
the draft guidance based on comments on the proposed rule, updated it 
regarding hazards related to Listeria monocytogenes (Lm) and residues, 
and improved readability.
    Additionally, FSIS previously did not incorporate the 
pasteurization time and temperature requirements from 9 CFR 590.570 for 
liquid egg whites in the draft guidance. It had been intentionally 
excluded because the current scientific literature indicates that the 
time and temperature for liquid egg whites in 9 CFR 590.570 does not 
achieve a 5-log10 reduction of Salmonella. FSIS reviewed the 
available data to determine the appropriateness of a 5-log10 
reduction of Salmonella in egg whites as a safe harbor. As such, FSIS 
is incorporating a separate section with specific conditions under 
which the pasteurization time and temperature from 9 CFR 590.570 for 
liquid egg whites may be used as a safe harbor. Comments on the draft 
guidance are discussed in more detail below. FSIS has posted the final 
guidance, FSIS Food Safety Guideline for Egg Products, on its web page 
at (http://www.fsis.usda.gov/wps/portal/fsis/topics/regulatory-compliance/compliance-guides-index).
    FSIS also is posting an Egg Products Hazards and Controls Guide on 
its web page at https://www.fsis.usda.gov/wps/wcm/connect/089c71f4-b634-44c8-a69c-389e289f50b2/egg-hazards-controls-guide.pdf?MOD=AJPERES. 
This guide will help egg products plants design and control safer food 
production systems, particularly small and very small plants that may 
need additional assistance as they develop their hazard analyses, 
support their hazard analyses decisions, and amend existing HACCP 
systems after reassessment. The guide identifies the process steps 
relevant to each process category, lists some potential hazards in the 
process steps, and cites some of the controls frequently used by 
processors to address these hazards.

II. Comments and Responses

    FSIS received 87 comments from consumers, individuals, a trade 
association representing the egg products industry, the egg products 
industry, a consumer group, a trade association representing egg 
farmers and egg further processing facilities, inspection program 
personnel (IPP), students and a college professor, an independent 
consultant, an engineer, an individual working in a field allied with 
the egg products industry, one foreign government, an FDA-regulated 
facility, and one U.S. government agency. Most

[[Page 68644]]

commenters supported the proposed rule overall, with many stating that 
they thought that the proposed regulations would ensure food safety and 
protect public health. There was, however, disagreement among 
commenters about FSIS's suggested change to the Agency's interpretation 
of the requirement for continuous inspection and questions about the 
cost of the proposal.
    FSIS also received some comments from consumers indicating 
confusion about the scope of the proposed rule. For example, one 
commenter asked whether the same standards that were proposed for egg 
products plants would be in place for shell egg producers. The proposed 
rule did not include requirements for shell egg producers. FSIS 
regulates official egg products plants and their processing operations 
and does not generally regulate shell eggs outside of egg products 
plants, except when checking to ensure that shell eggs packed into 
containers destined for the ultimate consumer meet the packaging and 
labeling requirements of the EPIA and 9 CFR 590.50. Therefore, the 
comments received in response to this proposed rule dealing with shell 
egg producers and shell eggs located outside of official plants are 
outside the scope of this rulemaking. A second commenter expressed 
concern about animal welfare issues, while others requested aid, tax 
incentives, or rebates to offset the burden of changes required by this 
rulemaking. These comments were also all outside the scope of this 
rulemaking.
    In addition, the Agency received comments about surplus broiler 
eggs/out-of-specification hatching eggs being thrown away and not used 
to produce egg products for consumption because they cannot meet the 
FDA's requirement that eggs sent for breaking be refrigerated at 45 
[deg]F within 36 hours of lay (21 CFR 118.4(e)). These comments are 
outside the scope of this rulemaking.
    Below is a summary of comments received and FSIS's responses.

A. Continuous Inspection

    Comments: FSIS received three comments from a trade association 
representing the egg products industry and from the egg products 
industry, generally in favor of FSIS's proposal to reinterpret 
``continuous inspection'' to require the presence of inspectors in egg 
products plants at least once per shift, instead of during all 
processing operations. FSIS received 16 comments from individuals, 
students, a trade association representing egg farmers and egg further 
processing facilities, an individual working in a field allied with the 
egg products industry, and IPP opposing the change. FSIS received one 
comment asking for more details.
    Comment: The college professor suggested that the decrease in the 
amount of onsite inspection would increase the burden on manufacturers 
to adhere to new standardized food safety and sanitation protocols.
    Response: FSIS disagrees. Manufacturers must meet certain 
requirements under this final rule. The amount of onsite inspection 
provided does not change those requirements, and IPP do not help 
manufacturers meet these requirements by completing tasks for them. The 
burden remains the same, regardless of the amount of onsite inspection 
provided.
    Comment: The comment from the consumer group stated that 
``continuous inspection'' is defined in the EPIA. As such, according to 
this commenter, the proposed change would need to be done legislatively 
and not simply through a rulemaking as proposed by the Agency.
    Response: FSIS disagrees. The EPIA does not contain a definition of 
``continuous inspection.'' Under 21 U.S.C. 1043, the Secretary of 
Agriculture has the authority to promulgate rules and regulations 
deemed necessary to carry out the provisions or purposes of the Act. 
Under this authority,\1\ FSIS proposed a rule that would change its 
interpretation of ``continuous inspection'' because such change is 
necessary to effectively and efficiently administer the egg products 
inspection program.
---------------------------------------------------------------------------

    \1\ The Secretary of Agriculture's authority to exercise the 
functions contained in the EPIA is delegated to the Under Secretary 
of Food Safety and can be found in 7 CFR 2.18(a)(1)(ii)(C).
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    As FSIS explained in the proposed rule, egg products operations are 
more like meat and poultry processing operations, and especially those 
that produce ready-to-eat (RTE) products, than they are meat and 
poultry slaughter operations, where inspection is required for each 
meat or poultry carcass. Like RTE meat and poultry processing 
operations, the typical egg products processing operation is a 
streamlined, automated process, with a lethality step to destroy 
pathogens of concern in the finished product (83 FR 6333). As a result, 
changing the Agency's interpretation of continuous inspection will 
allow FSIS to better use its inspection resources to conduct more 
efficient and effective inspections.
    Comment: The trade association representing the egg products 
industry said that FSIS should move cautiously in forming a different 
approach to continuous inspection. This commenter pointed out that 
there are highly controlled processing steps, often requiring minimal 
human interaction, that may pose less risk than other processing steps, 
like breaking, blending, or pasteurizing, which are more like slaughter 
processes than not. For less risky processes, the commenter suggested 
that an inspector's unannounced presence for something less than the 
entire processing shift may be satisfactory.
    Several commenters opposed to the proposed change in continuous 
inspection, including IPP and the engineer, argued that breaking eggs 
is more like meat and poultry slaughter than processing. Because 
inspection is required in slaughter plants for all slaughter 
operations, they stated that inspection should also be required during 
breaking operations.
    Response: FSIS disagrees that breaking eggs is more like meat and 
poultry slaughter than processing. As discussed above, the Agency 
believes that egg products operations are more like meat and poultry 
processing operations than they are meat and poultry slaughter 
operations, because the typical egg products processing operation is a 
streamlined, automated process, with a lethality step to destroy 
pathogens of concern in the finished product. Further, the shift to 
processing inspection frequencies will give FSIS the flexibility to 
focus inspection coverage and tasks in consideration of public health 
risk, consistent with what the trade association comment recommended. 
FSIS's shift to processing inspection frequencies will take place in 
individual plants as they implement HACCP.
    Comment: Three comments from the trade association representing the 
egg products industry and the two official plants supported the 
proposed change to the interpretation of continuous inspection, 
provided that the number of available inspectors is adequate to prevent 
interruptions in processing, in the movement of export shipments, or in 
the performance of certifications of customer specifications or 
requirements on a fee basis under the Agricultural Marketing Act. 
Similarly, one comment from an inspector stated that monitoring the 
requirements for the Agricultural Marketing Service's Commodity 
Procurement Program would be difficult under patrol assignments, as 
would collecting samples and applying seals. In addition, this 
commenter said that patrol assignments would prevent the performance of 
final inspections. The trade association representing the egg products 
industry, an egg products plant, and the FDA-regulated facility

[[Page 68645]]

asked about possible changes to inspection under the proposal.
    Response: The Agency is required by the EPIA to adequately assign 
inspection resources to ensure that the requirements of the EPIA are 
being met. IPP in meat and poultry processing establishments are able 
to monitor the requirements for the Commodity Procurement Program, 
perform export certification, and provide fee-based inspection 
services, while on patrol assignments. They will be able to do so in 
egg products plants, as well.
    When the proposed rule is finalized, egg products plants will 
continue to operate under inspection regulations during all hours of 
operation, but will most likely have an inspector present only once 
during each production shift. While at each plant, FSIS inspectors will 
monitor the plant's sanitary operating practices and the execution of 
its HACCP plan, such as the critical control point (CCP) related to the 
heat treatment of egg products, conduct the Agency's food safety 
related Public Health Information System (PHIS) tasks, and perform 
other consumer protection tasks, such as conducting product labeling 
reviews. Under the final rule, however, plants will still be required 
to have approved operating schedules per 9 CFR 590.124.
    Comment: One comment from the trade association representing the 
egg products industry stated that changing the Agency's interpretation 
of continuous inspection could result in inspection being 
inconsistently applied, that is, it would be provided as a matter of 
management efficiency rather than based on need. Under the new 
interpretation of continuous inspection, this commenter stated that 
inspection could significantly differ among two or more similar plants 
based on the location of each.
    Response: As noted above, the EPIA requires the Secretary of 
Agriculture to adequately assign inspection resources, as he deems 
necessary, to ensure that the requirements of the Act are being met. 
Accordingly, the Agency will provide each plant the amount of 
inspection coverage that is appropriate for that plant and will provide 
an inspector at least once each operating shift.
    Additionally, FSIS inspectors in egg products plants will receive 
the same routine inspection tasks in PHIS, so inspection activities 
that inspectors conduct will be consistent across all egg products 
plants. Moreover, FSIS has many years of experience with using patrol 
assignments to efficiently and effectively inspect the preparation of 
food products. Therefore, FSIS is confident that the use of patrol 
assignments, as necessary, will result in appropriate inspection 
assignments at all egg products plants.
    Comment: The trade association representing the egg products 
industry, while commending the Agency's desire to reduce inspection 
costs to taxpayers and industry, questioned how much FSIS will save for 
government or industry. This commenter said that biosecurity concerns 
will impact the availability of IPP among plants and that egg products 
plants already have issues with the limited availability of IPP at 
certain times, usually during overtime periods. The commenter indicated 
that most overtime now required by the egg products industry is during 
times when nearby meat and poultry further processors, when they exist, 
are inactive or otherwise not required to have inspection.
    Response: Through this final rule, the Agency will reduce the use 
of inspectors outside their normal work schedules and during overtime 
hours and holidays in plants by using patrol assignments. The use of 
patrol assignments likely will reduce the costs for overtime and 
holiday hours because plants will not be required to operate under the 
previous interpretation of continuous inspection during overtime and 
holiday hours. As a result, industry should realize cost savings of 
approximately $4.8 million annualized at the 7 percent discount rate 
over ten years.
    Comment: A comment from the trade association representing the egg 
products industry in favor of the proposed change pointed out that most 
firms already have very restrictive biosecurity systems in place and 
indicated that there are many restrictions on the movement of personnel 
within a single production or processing site for food safety and 
animal health reasons. While acknowledging that FSIS IPP already comply 
with industry biosecurity protocols, this commenter stated that IPP 
need to continue to honor all reasonable biosecurity requirements at 
inspected plants, including minimum times between entry to a plant and 
entry to another plant or farm. Another comment from an egg products 
plant said that FSIS needs to think about biosecurity when considering 
an inspector's ability to visit more than one facility a day, as such 
restrictions may limit IPP travel among inspected plants, such as 
inline operations that house live chickens and off-line operations.
    A comment from an inspector said that if continuous inspection is 
replaced with patrol assignments, only one facility in the assignment 
could have live birds, as other facilities having live birds would 
create biosecurity concerns. This commenter also stated that finding 
available replacements for IPP in cases of emergency would be difficult 
for FSIS, as a potential replacement could not have been in a facility 
with live birds within the time limit provided by the biosecurity 
policies of the other plants in the assignment. Another inspector said 
that by jeopardizing biosecurity measures, patrol assignments could 
result in other countries banning the export of egg products if there 
is an outbreak associated with eggs.
    Response: Changing the interpretation of continuous inspection 
under the EPIA will allow for more flexibility to inspect egg products 
plants using patrol assignments, but FSIS will continue to assign 
inspectors to ensure both that the requirements of the EPIA are met and 
the biosecurity of plants is not compromised. IPP have successfully 
complied with the biosecurity measures put in place by official meat 
and poultry establishments and egg products plants since 2015, when 
FSIS issued FSIS Notice 17-15, FSIS Program Personnel Hygiene and 
Biosecurity Practices. Since that time, FSIS is unaware of any disease 
transmission caused by the movement of IPP or issues regarding 
inspection coverage resulting from the implementation of industry 
biosecurity measures. When this final rule is issued, IPP will continue 
to follow biosecurity measures put in place by official establishments 
and plants in accordance with FSIS Directive 5060.1, Hygiene and 
Biosecurity Practices.
    Comment: Two comments from IPP opposed to the proposed change in 
continuous inspection stated that the proposal would not protect public 
health or would be detrimental to the public. Two other inspectors said 
that continuous inspection is an integral part of the food safety 
aspect of egg products. Others said that without continuous inspection, 
plants will not follow HACCP and Sanitation SOP protocols, and as a 
result, will produce adulterated product. These commenters argued that 
plants will take short cuts because IPP will not be there to verify or 
monitor production, and they will break ineligible eggs. One inspector 
said that because plants will know when IPP arrive under a patrol 
assignment, there is no deterrent for them to not break ineligible 
eggs.
    A comment by an inspector stated that without continuous 
inspection, IPP will not know what occurred before and after they are 
onsite. Another inspector said that with only one site visit a day in 
an egg products drying plant

[[Page 68646]]

operating 24 hours a day, seven days a week, equipment that is cleaned 
in place could potentially rarely be inspected. This commenter also 
said that IPP would not have the opportunity to observe or conduct many 
required tasks if the proposed change to continuous inspection is 
implemented.
    Response: FSIS's paramount obligation is to protect the public 
health. This final rule does that by building the principle of 
prevention into production processes through HACCP and Sanitation SOP 
requirements. This final rule also protects public health by better 
delineating and clarifying the respective roles of industry and FSIS to 
ensure that egg products are produced in accordance with sanitation and 
safety standards and are not adulterated or misbranded within the 
meaning of the EPIA. FSIS and establishment data show that HACCP and 
the related sanitation requirements have been an effective system for 
reducing or eliminating food safety hazards in meat and poultry 
processing establishments, inspected under patrol assignments. IPP have 
had no difficulties verifying regulatory compliance. The application of 
HACCP to egg products processing should be no different and these 
changes should significantly enhance the effectiveness of the egg 
products inspection program. Under HACCP, FSIS will verify that plants 
have conducted the hazard analysis to identify all hazards reasonably 
likely to occur and then will verify that plants follow their HACCP 
plans.\2\ If plants do not follow their HACCP plans, FSIS will take 
regulatory enforcement actions in accordance with 9 CFR part 500.
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    \2\ Continuous inspection in egg products plants requires an 
inspector to be on the premises at least once per shift, not once 
per day. If a plant has multiple shifts, such inspector presence 
will be required for each shift.
---------------------------------------------------------------------------

    Plants will not know when IPP are to arrive under a patrol 
assignment. Under patrol assignment inspection, FSIS will observe the 
breaking of shell eggs and will review plant records concerning 
incoming eggs to verify that plants are not breaking dirty eggs. 
Finally, FSIS will test product for pathogens and residues to verify 
that it is not adulterated.
    HACCP is a flexible system tailored as a structured food safety 
program designed for a plant's specific processes and products. Once 
implemented, egg products plants will be required to develop and 
implement a HACCP system for food safety that is designed to prevent, 
eliminate, or reduce to an acceptable level the occurrence of 
biological, chemical, and physical hazards that are reasonably likely 
to occur in the plant's process. Plants will be responsible for 
developing and implementing HACCP plans that incorporate the controls 
that are necessary to produce safe egg products. Plants will also have 
to develop and maintain effective recordkeeping procedures that 
document the entire HACCP system and perform on-going verification 
procedures to ensure that the plant's HACCP system follows the 
regulatory requirements.
    At the same time, proper sanitation is an important and integral 
part of every food process and a fundamental requirement under the law. 
Once the sanitation requirements under 9 CFR part 416 are implemented, 
all plants that process egg products will have to develop, implement, 
and maintain written Sanitation SOPs to prevent direct contamination or 
adulteration of product before and during operations (9 CFR 416.11). 
Plants will also be required to maintain daily records to document 
adherence to the SOPs (9 CFR 416.16).
    The implementation of 9 CFR parts 416 and 417 for egg products 
plants modernizes inspection procedures consistent with inspection 
procedures in meat and poultry processing establishments, using the 
Agency's resources more efficiently and removing unnecessary regulatory 
obstacles to innovation by plants. This will ensure the same level of 
inspection oversight to achieve FSIS's public health mission and will 
not diminish the inspector's ability to conduct verification procedures 
to ensure regulatory compliance by the egg products plants.
    Comment: A comment from the college professor suggested that FSIS 
provide for video streaming feeds of several facilities simultaneously 
to one inspector to remotely monitor safety and sanitation operations, 
with another in-plant inspector supplementing the video stream with one 
in-person visit per shift. The commenter said that this would allow for 
more efficient use of manpower and be consistent with reducing the 
number of hours inspectors would be present in egg products plans.
    Response: FSIS does not believe that it is necessary to constantly 
inspect operations via video to effectively inspect egg products 
plants. As mentioned above, FSIS has experience using patrol 
assignments to conduct food safety inspection. FSIS believes that by 
conducting patrol assignments, reviewing records, and sampling 
products, it obtains a complete view of establishment operations.

B. HACCP, Sanitation SOPs, and Other Sanitation Requirements

    Comment: Some commenters questioned whether the current regulations 
for egg products plants are equal to the requirements that the meat and 
poultry industry must meet and suggested the proposed requirements 
would ``make egg products safer.'' Other commenters stated that egg 
products would (and should) be regulated more strictly than meat and 
poultry products.
    Response: The current and proposed egg products regulations are 
both effective, i.e., they prevent the adulteration and misbranding of 
egg products, and egg products produced under them are RTE and safe for 
consumption. However, the current regulations are overly prescriptive 
and not flexible. They do not, for example, allow official plants to 
tailor their control systems to the needs of their particular plants 
and processes. They do not allow official plants to innovate regarding 
facility design, construction, and operations, and they unnecessarily 
define the specific means needed to achieve sanitation requirements. 
The HACCP, Sanitation SOPs, and other sanitation requirements being 
finalized in this rulemaking are consistent with, and not stricter 
than, the meat and poultry regulations. They will ensure food safety 
protection while offering egg products plants flexibility in their 
operations and the ability to innovate.
    Comment: FSIS received many comments in favor of requiring official 
plants to develop and implement HACCP Systems and Sanitation SOPs and 
to meet other sanitation requirements consistent with the meat and 
poultry regulations. Commenters, including individuals, academic 
students, the trade association representing the egg products industry, 
and the trade association representing egg farmers and egg further 
processing facilities contended that these requirements would provide a 
more standardized approach for food safety across all products 
inspected by FSIS, serve to ensure uniformity among all egg products 
plants, and make the egg products inspection regulations more effective 
by eliminating numerous prescriptive command-and-control regulations. 
One comment from the individual working in a field allied with the egg 
products industry stated that a benefit of HACCP is its recordkeeping 
requirements, as records reviews by plant personnel and IPP would 
ensure the safety of product and that the system is functioning as 
required. The trade association representing egg farmers and egg 
further processing facilities

[[Page 68647]]

supported the application of corrective actions to prevent the 
recurrence of detectable pathogens. Another comment from an individual 
supported the proposed HACCP and sanitation requirements because, 
according to the commenter, egg products present similar food safety 
risks as meat and poultry. The individual working in a field allied 
with the egg products industry stated that sanitation regulations for 
egg products should be consistent with those for meat and poultry, 
because dirt attached to eggs or equipment can affect product 
integrity. Comments from the trade association representing the egg 
products industry and the egg products industry supported the proposed 
requirements for HACCP and Sanitation SOPs because, according to these 
commenters, many egg products plants have already voluntarily 
instituted these programs due to customers' requirements. These same 
commenters believed that the implementation of these programs will 
eliminate industry and IPP confusion due to the inconsistency of HACCP 
requirements in meat and poultry establishments and prescriptive 
command-and-control requirements in egg products plants.
    Several commenters specifically expressed support for the proposed 
sanitation requirements. An individual stated that measures taken to 
improve the food supply are worthwhile, even if it means higher egg 
products prices for consumers. Other individuals felt that the 
provisions of the proposed rule could prevent future unsanitary 
conditions that may give way to spoiled or contaminated eggs.
    One comment from a student stated that while shifting liability and 
responsibility for oversight onto manufacturers via HACCP and 
Sanitation SOPs would increase efficiency, such efficiency could not be 
measured until the proposal had been implemented. This commenter 
thought that FSIS should phase in the requirements of the proposed rule 
for two to three years to measure the effectiveness of the new rule and 
make further changes to the regulations, if necessary.
    Response: FSIS agrees with these comments supporting the proposed 
HACCP, Sanitation SOP, and other sanitation requirements. FSIS believes 
that the efficiency of HACCP and Sanitation SOPs, in general, has been 
shown. The meat and poultry industries have operated under these 
programs since the late 1990s; their efficiency in eliminating food 
safety hazards since that time has been clearly demonstrated. For 
example, by 2000-2001, cleaning and sanitation tasks and tasks required 
to implement HACCP had accounted for approximately a one-third 
reduction in the number of meat and poultry samples testing positive 
for Salmonella spp.\3\ In addition, shortly after HACCP was introduced, 
Salmonella meat contamination levels were generally reduced, a finding 
consistent with improvement through HACCP implementation.\4\ FSIS 
believes that the HACCP, Sanitation SOPs, and sanitation performance 
standards will similarly be effective in egg products plants. In any 
event, FSIS retains the authority to further amend its regulations as 
needed in the future.
---------------------------------------------------------------------------

    \3\ Economic Research Service, ``The Interplay of Regulation and 
Marketing Incentives in Providing Food Safety,'' July 2009.
    \4\ Rose BE, Hill WE, Umholtz R, Ramnsom GM, James WO. 2002. 
``Testing for Salmonella in raw meat and poultry products collected 
at federally inspected establishments in the United States, 1998 
through 2000.'' J Food Prot 65:937-947.
---------------------------------------------------------------------------

    Comment: A comment from an individual said that there needs to be a 
set, thorough way to fully examine and determine the cleanliness of 
equipment. This commenter also stated that cleaning and sanitizing 
solutions used on equipment in egg products plants should be identified 
and their use indicated on egg products labels.
    Response: When the proposed rule becomes final, IPP will verify 
plants' compliance with the sanitation requirements in 9 CFR 416.3(a), 
which requires that equipment and utensils be maintained in sanitary 
conditions so as not to adulterate product. Cleaning and sanitizing 
solutions are not intended to be added to food and are not food 
ingredients. They do not need to be identified and their use indicated 
on egg products labels because they do not remain as a constituent of 
the finished egg product.
    Comment: The engineer stated that FSIS needs to include a 
requirement for equipment standards, such as the E-3-A standards, or 
the 3-A standards used by the Agricultural Marketing Service in the 
dairy industry. This commenter stated that individual pieces of 
equipment can be quite complex and that the incorrect design, 
materials, manufacturing specifications, operation, and maintenance of 
systems to process liquid and dried eggs can and will lead to product 
contamination.
    Response: FSIS disagrees that the egg products inspection 
regulations need to include a requirement for equipment standards. When 
finalized, 9 CFR 416.3 will apply to egg products plants and clarify 
the requirements that plants select and maintain equipment to 
effectively prevent product contamination or adulteration. Plants will 
still need to ensure that product is not contaminated, adulterated, or 
misbranded during processing, handling, or storage. FSIS will verify 
that plant equipment and systems meet the sanitation performance 
standards through regular inspection tasks.
    Comment: A consumer group questioned whether FSIS can determine if 
HACCP plans adopted by egg products plants are valid within the 
effective dates of the regulations.
    Response: As with HACCP for meat and poultry processing, under this 
final rule, 9 CFR 417.4(a) requires plants to validate that their HACCP 
system works as intended within their plant. To validate their HACCP 
systems, plants need scientific support to show that their system can 
eliminate hazards and also need in-plant data showing that their system 
works as intended within the plant. FSIS will be able to verify 
compliance with these requirements. FSIS has ample experience in 
reviewing and evaluating HACCP plans and their implementation in food 
processing environments. Given this, and FSIS's experience regulating 
the egg products industry specifically, FSIS anticipates no 
difficulties regulating the development and implementation of HACCP 
plans for egg products processing.
    Section 9 CFR 590.149(b) will be effective two years after the 
publication date of this final rule. All existing plants will have 90 
days starting on that effective date during which they must validate 
their HACCP plans. New plants will have 90 days from the date they 
receive their grant of inspection to validate their HACCP plans and 
plants producing new products will have 90 days from the date they 
start producing them during which to validate their HACCP plans. FSIS 
will verify whether plants have validated their HACCP systems after the 
effective date of the HACCP regulations and after any new plants have 
had time to validate their HACCP systems.

C. Control of Pathogens in Egg Products

    Comment: Three consumers supported the requirement that official 
plants be required to process egg products to be edible without 
additional preparation to achieve food safety. A comment from an 
inspector stated, however, that the new regulations would require 
unpasteurized egg products to be tested and found negative before they 
could be shipped from the producing plant, without needing further 
cooking/pasteurization. As a result, the inspector stated that the egg 
product would no longer meet the

[[Page 68648]]

definition of Pasteurized in 9 CFR 590.5.
    Response: When finalized, the proposed rule will not allow 
unpasteurized egg products to enter commerce. This is consistent with 
the current regulations, which permit such product to move only to 
another official plant for further processing (9 CFR 590.415(a)). 
Proposed Section 590.570, Control of pathogens in egg products, applies 
only to pasteurized egg products, not unpasteurized products. To 
clarify any misunderstanding, FSIS changed the title and regulatory 
text of 9 CFR 590.570 by adding the word ``pasteurized'' to it to make 
clear that that regulation is requiring pasteurized product, not 
unpasteurized product, to be produced as edible without additional 
preparation to achieve food safety.\5\ Unpasteurized egg products may 
continue to be sent to other official plants for further processing to 
achieve food safety; they may not, however, enter commerce (9 CFR 
590.415).\6\ The title of 9 CFR 590.570 will read Control of pathogens 
in pasteurized egg products. FSIS is also adding the word 
``pasteurized'' to the first and second sentences of 9 CFR 590.570 for 
the same reason.
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    \5\ To verify whether egg products are edible without additional 
preparation to achieve food safety, FSIS samples and tests 
pasteurized egg products for Salmonella spp. and Lm.
    \6\ Unpasteurized egg products may also be exported from the 
U.S. to Canada for further processing to achieve food safety. See 
https://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/exporting-products/requirements-for-processed-egg-products/canada-egg-products.
---------------------------------------------------------------------------

    Comment: One comment from an industry member stated that requiring 
egg products to be edible without additional preparation to achieve 
food safety would place a significant cost impact on plants that 
process unpasteurized egg products. In a similar vein, a comment from 
the engineer asked if egg breaking plants that do not have a kill step 
to eliminate pathogens and ship raw liquid egg products for further 
processing would be exempt from the regulations.
    Response: Plants that process unpasteurized egg products do not 
have to treat egg products to be edible without additional preparation 
to achieve food safety. As noted above, unpasteurized egg products may 
continue to be sent to other official plants for further processing to 
achieve food safety; they may not, however, enter commerce (9 CFR 
590.415). Therefore, there is no associated cost impact on plants that 
process unpasteurized egg products. Egg products in commerce currently 
cannot have any detectable pathogens. Therefore, requiring egg products 
to be edible without additional preparation to achieve food safety does 
not create any additional costs for producers of pasteurized egg 
products either. Plants that process unpasteurized egg products, i.e., 
products that do not receive a kill step to eliminate pathogens, and 
ship raw liquid egg products for further processing are not generally 
exempt from the regulations, but they do not have to meet the 
requirements of 9 CFR 590.570, which applies only to pasteurized egg 
products.

D. Labeling

    Comment: A comment from the trade association representing egg 
farmers and egg further processing facilities supported the Agency's 
proposal to make egg products labeling, including providing for generic 
labeling, more like labeling requirements for meat and poultry. An 
inspector noted that FDA-regulated egg substitutes may use food 
colorings not presently considered suitable by FSIS. This commenter 
stated that the generic labeling provisions would lead to unapproved 
ingredients being used in egg substitute products once they are under 
FSIS jurisdiction. An industry member sought assurances that existing 
label claims and product names on egg substitutes will continue to be 
allowed once the products are under FSIS jurisdiction.
    Response: FSIS will actively review coloring and ingredient 
approvals for egg substitutes while those products transition from 
FDA's jurisdiction to FSIS's. FSIS has a Memorandum of Understanding 
\7\ with FDA that establishes the working relationship to be followed 
by FSIS and FDA when responding to requests (i.e., petitions or 
notifications) for the use of food additives, including sources of 
radiation and food contact substances, generally recognized as safe 
substances, prior-sanctioned substances, and color additives subject to 
FDA regulation and intended for use in the production of FSIS-regulated 
meat, poultry, and egg products. Under this agreement, FDA determines 
whether substances are safe for use in human food, and FSIS determines 
whether they are suitable for use in meat, poultry, or egg products. 
After the effective date of this final rule, the Agency will continue 
to work with FDA on assessing any food colorings or food ingredients 
used in egg substitutes.
---------------------------------------------------------------------------

    \7\ 225-00-2000 Amendment 1: Memorandum of Understanding Between 
the United States Department of Agriculture Food Safety Inspection 
Service and the United States Department of Health and Human 
Services Food and Drug Administration, (http://www.fda.gov/AboutFDA/PartnershipsCollaborations/MemorandaofUnderstandingMOUs/DomesticMOUs/ucm441552.htm), 2000.
---------------------------------------------------------------------------

    FSIS is likely to approve label claims, product names on egg 
substitutes and similar products, and food colorings that have met FDA 
requirements. FSIS will conduct timely and transparent reviews of 
specific claims, products names, and food colorings, and will provide 
guidance on labeling claims and names for egg substitute and similar 
products.
    Comment: Another comment from the FDA-regulated facility asked if 
all liquid/frozen whole egg products must have 24.2 percent solids per 
9 CFR 590.411(d) and if so, whether this requirement would eliminate 
from the marketplace the liquid/frozen product being sold now as whole 
egg but at 17 percent solids (products currently using gums and 
starches).
    Response: As described, this egg product is prepared in other than 
natural proportions. Therefore, it would not comply with the 
requirement in 9 CFR 590.411(d) that liquid or frozen egg products 
identified as whole eggs and prepared in other than natural 
proportions, as broken from the shell, have a total egg solids content 
of 24.20 percent or greater. This rulemaking did not make substantive 
changes to 9 CFR 590.411(d). Under that regulation, as amended, 
``Liquid and frozen egg products identified as whole eggs and processed 
in other than natural proportions as broken from the shell must have a 
total egg solids content of 24.20 percent or greater.'' Such egg 
products may have a total egg solids content of less than 24.20 
percent, but they may not be identified as ``whole eggs.'' Such 
labeling would cause the products to be misbranded. They may, for 
example, be labeled as ``Liquid Egg Product'' with ``Ingredients: Egg 
whites, egg yolks.''

E. Blueprints

    Comments: The individual working in a field allied with the egg 
products industry said that the submission of drawings to USDA for 
prior approval before making structural changes should be kept and that 
plants should know what they can and cannot do prior to making changes.
    Response: FSIS believes that the development and implementation of 
effective Sanitation SOPs and HACCP systems and compliance with the 
other sanitation requirements will meet the same objectives as prior 
approval of plant drawings and equipment specifications by FSIS. The 
prior approval process is inconsistent with

[[Page 68649]]

FSIS's view of the appropriate division of responsibility between the 
Agency and official plants for the production of safe, unadulterated 
egg products. Plants develop and implement validated HACCP systems to 
produce safe egg products; FSIS verifies the efficacy of these 
processes through inspection activities, including product sampling and 
testing. Further, as discussed in the proposed rule, the prior approval 
requirement is an obstacle and too often a deterrent to innovation by 
official plants seeking to improve operations, and it contributes to 
the inefficient use of FSIS resources both in managing the approval 
system and verifying official plants' compliance with approved facility 
and equipment specifications.
    In addition, FSIS prior approvals are of limited value in ensuring 
good sanitation. They are limited in both (1) scope, in that they deal 
only with official plant facilities as presented in drawings and 
equipment presented as new, and (2) time, in that they are given once, 
on the condition that official plants will maintain a sanitary 
operating environment after their facilities and equipment are 
approved. The Sanitation SOP regulations and sanitation standards 
require plants to account for structural changes and maintenance over 
time.
    The sanitation regulations set forth general principles for plant 
construction to ensure the maintenance of sanitary conditions and to 
prevent product adulteration. Paragraph (b) of 9 CFR 416.2 specifically 
addresses construction requirements in official establishments. 
Paragraph (b)(1) requires that establishment buildings meet certain 
sanitation requirements, while paragraphs (b)(2) and (3) provide 
requirements for interior construction and materials. Paragraph (b)(4) 
contains requirements for rooms and compartments in which edible 
product is processed, handled, or stored. The elimination of prior 
approval for drawings and equipment specifications will provide 
official plants the flexibility to determine the specific steps to be 
taken to comply with these requirements.
    Comment: The individual working in a field allied with the egg 
products industry thought that many egg products inspection regulations 
needed to be updated or removed due to gray areas, irrelevancy, or 
because inspection determinations are left to the discretion of each 
inspector. This commenter stated that consistency is not possible under 
the proposed regulations and that having more regulations that are 
firmly written with absolute requirements or circumstances would be 
extremely beneficial to plants.
    Response: FSIS disagrees that such prescriptive regulations are 
needed in egg products plants. HACCP has been proven to be the best 
framework for building science-based process control into food 
production systems to prevent food safety hazards.8 9 
Furthermore, HACCP is a flexible system that will provide an 
establishment the ability to tailor its control systems to the needs of 
its particular processes.
---------------------------------------------------------------------------

    \8\ Neal D. Fortin, Food Regulation: Law, Science, Policy, and 
Practice, (Hoboken, NJ: John Wiley and Sons, 2017) 181.
    \9\ Rose BE, Hill WE, Umholtz R, Ramnsom GM, James WO. 2002. 
``Testing for Salmonella in raw meat and poultry products collected 
at federally inspected establishments in the United States, 1998 
through 2000.'' J Food Prot 65:937-947.
---------------------------------------------------------------------------

    The Agency is also removing some prescriptive sanitation 
requirements because they impede innovation and blur the distinction 
between plant and inspector responsibilities for maintaining sanitary 
conditions. The intent of the final regulation is to provide 
establishments with more flexibility to innovate regarding facility 
design, construction, and operations. Inspection program personnel are 
trained to evaluate an establishment's control system to ensure that 
the system as designed and implemented meets regulatory requirements.

F. Freeze-Dried Egg Products and Egg Substitutes

    Comment: The trade association representing the egg products 
industry and a member of industry were in favor of FSIS no longer 
exempting freeze-dried egg products from inspection, while these two 
commenters and a third member of industry were in favor of FSIS no 
longer exempting egg substitutes from inspection. One industry member 
asked that FSIS work with industry to implement inspection of egg 
substitutes in a manner to minimalize the costs to industry and to 
limit the potential disruption of supply to customers as these products 
are transitioned from FDA to FSIS jurisdiction.
    Response: Producers of freeze-dried egg products and egg 
substitutes do not have to meet the requirements of this final rule 
until three years from the date of publication. Similarly, FSIS will 
not inspect production of these products until that date. FSIS will be 
transparent concerning how it plans to inspect egg substitutes and 
freeze-dried egg products and will publish additional information 
concerning the transition as necessary.
    Comment: The trade association representing the egg products 
industry noted that in the proposed rule FSIS removed egg products from 
the definition of an egg source for exempted products in 9 CFR 590.5 
and stated that the change would lead to confusion on the part of food 
manufacturers and others.
    Response: A portion of existing regulatory text was inadvertently 
omitted from the proposed term Egg product in 9 CFR 590.5. FSIS has 
reinserted that language so the definition now reads, ``For the 
purposes of this part, the following products, among others, are 
exempted as not being egg products: Cooked egg products, imitation egg 
products, dietary foods, dried no-bake custard mixes, egg nog mixes, 
acidic dressings, noodles, milk and egg dip, cake mixes, French toast, 
and sandwiches containing eggs or egg products, provided such products 
are prepared from inspected egg products or eggs containing no more 
restricted eggs than are allowed in the official standards for U.S. 
Consumer Grade B shell eggs.''

G. Exempted Plant Status

    Comment: The trade association representing the egg products 
industry and an industry member supported FSIS's decision to eliminate 
the exemption from continuous inspection available for any plant that 
meets the standards required for official plants in 9 CFR 590.500 
through 590.580 and where the eggs received or used in the manufacture 
of egg products contain no more restricted eggs than are allowed by the 
official standards for U.S. Consumer Grade B shell eggs found in 9 CFR 
590.100(b). These same commenters also supported FSIS's decision to 
eliminate the corresponding regulations in 9 CFR 590.600-680 containing 
the requirements plants have to meet if they wish to be exempt from 
continuous inspection. Both commenters acknowledged that section 
1044(a)(2) of the EPIA gives the Secretary of Agriculture discretion to 
exempt qualifying plants from specific provisions of the Act; however, 
both commenters stated that these regulatory provisions are 
inconsistent with the stated intent of the EPIA to protect the health 
and welfare of consumers.
    Response: FSIS agrees with these comments. The exemption from 
continuous inspection found in 9 CFR 590.100(b) and the corresponding 
regulations in 9 CFR 590.600-680 would permit periodic inspection in 
egg products plants. FSIS believes that such plants should be inspected 
at least once per shift. Therefore, the Agency is

[[Page 68650]]

moving forward as proposed in the rule to eliminate the exemption from 
continuous inspection found in 9 CFR 59.100(b) for certain egg products 
plants and the exempted egg products plant regulations in 9 CFR 
590.600-680.

H. Eggs of Current Production

    A comment from a trade association representing the egg products 
industry agreed with FSIS that eggs over 60 days of age have lessened 
quality and will not meet most customers' expectations for functional 
properties. This commenter recommended that FSIS leave the ``eggs of 
current production'' definition in the regulations because, according 
to the commenter, the lessened value of product produced from eggs not 
of current production should be reflected on the label of that product. 
Other comments from IPP and the egg products industry opposed FSIS's 
proposal to remove the definition without explanation. Because FSIS 
agrees with the points raised by the first commenter, it is not 
eliminating the definition for the term ``eggs of current production.''

I. Implementation Timeframe and Training

    Comment: A member of industry found the one-year implementation 
schedule for Sanitation SOPs and two-year implementation schedule for 
HACCP acceptable. This commenter then asked that FSIS provide training 
for the industry when training is provided to FSIS inspectors at egg 
products plants to ensure that there is clear communication of FSIS's 
expectations for the programs between all parties. If the 
implementation timeframe listed does not provide sufficient time to 
provide training to both inspectors and industry, the commenter asked 
that the implementation be extended to complete both training and 
implementation steps.
    Response: FSIS agrees that effective training of both FSIS and 
industry employees is critical to the success of Sanitation SOPs and 
HACCP. However, FSIS does not plan to allow industry to attend Agency 
training sessions because of complex logistical and cost 
considerations. The Agency also believes that responsible plant 
officials are in the best position to determine the training needs for 
each plant. As is discussed above, FSIS is providing guidance to the 
industry that the industry may decide to use to train industry 
employees. FSIS also believes that the current timeframe provides 
sufficient time for the industry to train its employees in Sanitation 
SOPs and HACCP and then implement each of the programs.
    Comment: A comment from the college professor stated that because 
the effective implementation of HACCP and Sanitation SOPs relies on 
well-trained and performing employees, user-centered training and 
instructional materials should be given added consideration to ensure a 
robust supportive framework is in place in the planned change. This 
commenter stated that FSIS should guide industry on how to adopt and 
implement HACCP and Sanitation SOPs, and training should be user-
focused and modernized to maximize both agency and industry resources 
in the training and change implementation process. A comment from an 
individual said that promises for guidance about the proposed changes 
were mentioned in the proposal, but were not directly addressed.
    Response: In the preamble to the proposed rule, FSIS said that it 
would provide additional guidance to plants on how to validate their 
HACCP systems (83 FR 6319). FSIS previously provided a Compliance 
Guideline for Hazard Analysis Critical Control Point (HACCP) Systems 
Validation in April 2015. While the examples in the compliance 
guideline reference meat and poultry products, the concepts contained 
in the document apply to egg products as well.
    FSIS also is announcing the availability of a Generic HACCP Models 
Guide for Egg Products that will be published before the HACCP 
regulations are implemented. And, as discussed earlier, FSIS is making 
available its FSIS Food Safety Guideline for Egg Products, which will 
help small and very small plants producing egg products meet the 
pasteurization requirements proposed in this rulemaking, and its Egg 
Products Hazards and Controls Guide, which will help egg products 
plants design and control safer food production systems. Both can be 
found on FSIS's web page.

J. Radioactive Content of Irradiated Egg Products

    Comment: The foreign government asked FSIS whether it would test 
the radioactive content of irradiated egg products and if so, what test 
method or basis would the Agency use in the detection of radiation in 
egg products.
    Response: FSIS is finalizing the proposed regulation 9 CFR 590.590, 
which will permit the use of irradiated shell eggs in the production of 
pasteurized egg products. As stated in the proposed rule, FDA amended 
its regulations in July 2000 to permit the use of ionizing radiation on 
shell eggs to reduce the level of Salmonella (July 21, 2000, 65 FR 
45280). Ionizing radiation does not increase the normal radioactivity 
level of the food, regardless of how long the food is exposed to the 
radiation, or how much of an energy dose is absorbed. FSIS, therefore, 
does not intend to test for the radioactive content of egg products 
produced from irradiated shell eggs.

K. Temperature and Labeling Requirements

    Comment: A federal agency asked FSIS to change proposed 9 CFR 
590.50(b) by deleting the words ``and labeling'' from the paragraph 
because 21 CFR 101.17(h) does not exempt producer-packers with an 
annual egg production from a flock of 3,000 or fewer hens from its 
labeling requirements. The agency asked that FSIS do this so that it is 
clear that producer-packers with an annual egg production from a flock 
of 3,000 or fewer hens are exempt only from the temperature 
requirements of 9 CFR 590.50(a) and not the labeling requirements in 21 
CFR 101.17(h).
    Response: The EPIA exempts producer-packers with an annual egg 
production from a flock of 3,000 or fewer hens from the refrigeration 
and labeling requirements of that Act. Section 1034(e)(1)(A) and (B) of 
Title 21 of the U.S. Code requires the Secretary of Agriculture to make 
such inspections as the Secretary considers appropriate of a facility 
of an egg handler (including a transport vehicle) to determine if shell 
eggs destined for the ultimate consumer are being held under 
refrigeration at an ambient temperature of no greater than 45 degrees 
Fahrenheit after packing and contain labeling that indicates that 
refrigeration is required. However, 1034(e)(4) exempts any egg handler 
with a flock of not more than 3,000 layers from an inspection by the 
Secretary and, therefore, exempts such egg handler from compliance with 
the refrigeration and labeling requirements of the EPIA. Nevertheless, 
producer-packers with an annual egg production from a flock of 3,000 or 
fewer hens are still required to comply with FDA's labeling requirement 
in 21 CFR 101.17(h) and 9 CFR 590.50(b) has been changed to reflect 
that requirement.

L. Dietary Supplements

    Comment: The FDA-regulated facility asked if ``dietary 
supplements'' are still exempt from labeling requirements.
    Response: Dried, frozen, or liquid egg products that are dietary 
supplements, as defined in the Federal Food, Drug, and Cosmetic Act 
(FD&C Act), are exempt from FSIS labeling requirements because they are 
under FDA, not FSIS,

[[Page 68651]]

jurisdiction. However, dried, frozen, or liquid egg products that 
purport to be dietary supplements, but are represented for use as 
conventional foods or as the sole item of a meal or the diet do not, in 
fact, meet the definition of ``dietary supplement'' in 21 U.S.C. 
321(ff)(2)(B)). Such products would be amenable to inspection under the 
EPIA and its conforming regulations and are therefore not exempt from 
FSIS's labeling requirements.
    Comment: The FDA-regulated facility asked if dehydrated egg whites 
labeled as ``dietary supplements'' that do not bear a USDA shield are 
still exempt from labeling requirements.
    Response: These products are not exempt from labeling requirements. 
Dehydrated egg whites are amenable egg products under the EPIA. They 
must be processed in an official plant under FSIS inspection, contain 
labels that are not false or misleading, and bear the official mark of 
inspection.

M. Hard-Cooked Eggs

    Comment: A comment from an inspector thought that it would make 
sense to move hard-cooked eggs from FDA's jurisdiction to FSIS's using 
the same logic as was used to transfer egg substitutes from FDA to FSIS 
jurisdiction.
    Response: Egg substitutes are being transferred from FDA to FSIS 
because FSIS determined, and FDA agreed, that egg substitutes are in 
fact egg products, as defined in the EPIA. As such, they correctly 
belong under FSIS's oversight. Hard-cooked eggs, however, do not fit 
the definition of ``egg product'' under the EPIA, i.e., they are not 
dried, frozen, or liquid eggs. Therefore, they cannot be regulated by 
FSIS under that statute.

N. Cooking as a Lethality Step

    Comment: The trade association representing the egg products 
industry and a member of industry asked FSIS to clarify whether cooking 
under FSIS inspection is, and under the proposal will remain, an 
acceptable lethality step when properly validated. The industry member 
also asked that only finished (saleable) egg products be required to be 
RTE.
    Response: Cooking unpasteurized egg products under FSIS inspection 
is an acceptable lethality step instead of pasteurization, if 
validated. Pasteurized or cooked egg products are required to be RTE.

O. Egg Breaking: Proposed Change to 9 CFR 590.522

    Comment: FSIS proposed to amend 9 CFR 590.522 by eliminating its 
numerous prescriptive sanitation provisions on breaking room operations 
and replacing them with a single provision requiring eggs used in 
processed egg products to be broken in a sanitary manner and examined 
to ensure that the contents are acceptable for human consumption. 
Comments from the trade association representing the egg products 
industry and the engineer stated that the language proposed for 9 CFR 
590.522 would eliminate the requirement for individual examination of 
each egg after breaking and before commingling, and would therefore 
result in the production of unwholesome egg products because individual 
examination of eggs is still necessary to remove adulterated eggs from 
production.
    Response: FSIS agrees with these comments and will amend proposed 9 
CFR 590.522 to clarify that eggs must be broken individually and 
examined for wholesomeness. The Agency will insert the word ``Each'' at 
the beginning of the regulation so that it reads, ``Each egg used in 
processed egg products must be broken in a sanitary manner and examined 
to ensure that the contents are acceptable for human consumption.''

P. Immersion-Type Shell Egg Washers

    Comment: As part of FSIS's proposal to eliminate 9 CFR 590.515, the 
explicit prohibition against the use of immersion-type washers is being 
eliminated (current 9 CFR 590.515(a)(7)). The trade association 
representing the egg products industry asked if the use of immersion-
type washers will therefore be permitted, without the submission of a 
regulatory waiver, provided the egg products plant, working with an 
equipment manufacturer, validates the safety of the process.
    Response: As discussed in the proposed rule, waivers of the type 
needed to permit the use of immersion-type washers will no longer be 
necessary (83 FR 6330). Under the final rule, the elimination of the 
prohibition on immersion-type washers will give plants the option to 
use such equipment, without applying for a regulatory waiver, provided 
the equipment does not create insanitary conditions and does not 
adulterate product. The plant must also have documentation supporting 
its decision to use an immersion-type washer (417.4(a)(1) and 
417.5(a)(1) and (a)(2)).
    Because the implementation of HACCP will eliminate the need for 
most regulatory waivers, previous waivers and no objection letters 
(NOL) in effect will be revoked on the date the HACCP requirements 
become effective, unless a plant implements HACCP earlier than that 
date, as they will no longer be applicable. If a plant determines that 
it still needs a waiver or NOL, it will need to reapply for a new one.

Q. Equivalency of Foreign Inspection Systems

    Comment: A comment from the trade association representing the egg 
products industry questioned how FSIS verifies that imported egg 
products are as safe as products produced in the Unites States under 
FSIS inspection. This commenter also said that not all foreign HACCP 
programs ensure the same level of food safety as domestic HACCP systems 
and questioned how FSIS can verify that foreign countries require 
equivalent HACCP programs when FSIS audits those countries only 
infrequently. This commenter asked that FSIS increase transparency by 
identifying what is required of foreign governments, publicly sharing 
plans for verifying that foreign governments have implemented the final 
rule changes before they manufacture egg products for the United 
States, and not permitting plants in foreign countries to self-
designate that they are eligible to produce products for the United 
States. This commenter believes that the implementation date of the 
final rule should allow time for auditors trained in egg products and 
the new rules to first complete audits of the governments previously 
determined to be equivalent and that the approval of new countries 
should be delayed until those countries demonstrate to a qualified FSIS 
auditor full compliance with the requirements of the laws and 
regulations.
    Response: Upon publication of the final rule, FSIS will notify 
countries either currently eligible to export egg products to the 
United States (Canada and the Netherlands), or that have requested 
eligibility to export egg products to the United States, of the new 
requirements. Before the effective dates of the HACCP, Sanitation SOP, 
and other sanitation requirements, these countries will be required to 
submit an updated Self-Reporting Tool and provide documentation that 
the country's laws, regulations, requirements, and procedures meet 
FSIS's new HACCP, Sanitation SOP, and other sanitation requirements. 
FSIS will determine on a case-by-case basis whether currently eligible 
countries or countries that have requested eligibility have implemented 
requirements equivalent to this final rule. If countries currently 
shipping egg products do not meet these requirements, FSIS will require 
that they make necessary changes to be able to continue shipping 
product. For other countries, FSIS will

[[Page 68652]]

not find their inspection systems equivalent and will not allow them to 
ship egg products to the United States until they meet necessary 
requirements. FSIS provides guidance on the equivalence process on its 
website at: https://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/Equivalence. FSIS also publishes its on-site 
verification audit reports at: https://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/importing-products/eligible-countries-products-foreign-establishments/foreign-audit-reports. FSIS 
communicates initial equivalence decisions through the Federal 
Register.
    Once FSIS determines a country's food safety inspection system to 
be equivalent, the foreign competent authority is responsible for 
certifying establishments that meet FSIS requirements. The foreign 
competent authority provides FSIS a list of certified establishments 
for review that is published on FSIS's website at: https://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/importing-products/eligible-countries-products-foreign-establishments/eligible-foreign-establishments.

R. Draft FSIS Compliance Guideline for Small and Very Small Plants That 
Produce Ready-To-Eat (RTE) Egg Products

    Comment: FSIS received two comments supporting FSIS's draft FSIS 
Compliance Guideline for Small and Very Small Plants that Produce 
Ready-to-Eat (RTE) Egg Products. One commenter suggested that there 
would be some benefit to translating the guideline into Spanish and 
Chinese. This commenter also suggested that guidelines dealing with 
shell egg imports be translated into Dutch or French.
    Response: FSIS will translate the final guidance, the FSIS Food 
Safety Guideline for Egg Products, into Spanish and will consider 
translating it into other languages. FSIS does not have guidance 
dealing with shell egg imports because it does not have jurisdiction 
over that product.
    Comment: A comment from the trade association representing the egg 
products industry, noting that Table 1 on page 16 of the compliance 
guideline lists the current regulatory requirements for pasteurization 
treatments, asked why the times and temperatures for liquid egg whites 
were not included in the table. This commenter also asked for 
confirmation that FSIS is not suggesting two standards for RTE egg 
products, i.e., one by regulation that requires the products to be 
edible without further preparation as verified by the absence of 
Salmonella and a second ``administrative standard'' that imposes a 
specific log reduction that may not be practical.
    Response: The time and temperature pasteurization parameter for 
liquid egg whites was not included in Table 1 on page 16 of the draft 
guidance because the scientific literature indicates that it may no 
longer result in a minimum 5-log10 reduction of Salmonella 
in the product, which is the reduction consistent with other FSIS RTE 
safe harbors and the FDA's Shell Egg Rule (74 FR 33030, July 9, 
2009).\10\
---------------------------------------------------------------------------

    \10\ In the 1998 Risk Assessment, FSIS stated, ``[t]he pH of 
albumen has a significant effect on the reduction of SE, when liquid 
egg white is pasteurized. Pasteurization is more effective at higher 
pH levels. Egg albumen has a bicarbonate buffer system which allows 
the pH to rise very rapidly. The pH of a freshly laid egg is about 
pH 7.8 and rises to pH 8.7 or 8.8 over three days of storage. After 
that, the pH increases much more slowly over time to a maximum pH of 
9.3 to 9.4. The time and temperature requirements of the 
pasteurization regulations were based on a pH of about 9 for egg 
white which was the case in 1969 when the regulations were written, 
and eggs did not arrive at the egg processing plant before three to 
five days. Since that time conditions have changed. Eggs reach the 
egg processing plant sooner now than in 1969, and the pH of the 
albumen is lower in eggs. For these reasons pasteurization today may 
be less effective than in 1969 because of the lower pH of eggs at 
the time of processing in 1998.''
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    In response to the comments, FSIS reviewed the available data to 
determine the effectiveness of the previous time and temperature 
pasteurization parameter for achieving a 5-log10 reduction 
of Salmonella in egg whites as a safe harbor. The available research 
indicates that the natural antimicrobial properties of the albumen, the 
current vaccination and sanitation practices at the farm, and the 
refrigeration requirement of eggs within 36 hours of lay all limit the 
growth of Salmonella.
    Available studies examined Salmonella in eggs from chickens 
infected with Salmonella. Humphrey et. al.,11 12 enumerated 
Salmonella from the egg, but also looked at Salmonella growth when 
inoculated into different parts of the egg (albumen versus yolk). 
Garibaldi et. al.,\13\ enumerated Salmonella from whole egg and from 
the albumen while Gast and Beard \14\ enumerated the Salmonella from 
the whole egg. Their studies demonstrated that most eggs had less than 
1-log10 of Salmonella per egg while a few eggs had 2.1-
log10 of Salmonella. Humphrey et. al., (1991) determined 
that Salmonella inoculated into the outer edge of the albumen was less 
likely to grow than when inoculated next to the yolk membrane, fresh 
eggs were less likely to support Salmonella growth regardless of its 
position in the albumen, and that Salmonella positive eggs contained 
less than 1.3-log10 of Salmonella when stored at room 
temperature for less than three weeks. Gast and Beard (1992) studied 
the effect of storage temperature on frequency of isolation and 
concentration of Salmonella in eggs from experimentally infected hens 
and determined that eggs stored at 45 [deg]F for 7 days had 0.75-
log10 of Salmonella. Since that time, the industry has 
continued to lower Salmonella levels in egg products. FSIS performed a 
Salmonella baseline survey from 2012 to 2013.\15\ Results of that 
baseline indicate that raw liquid whole egg samples had -0.60-
log10 to -0.31-log10 (95% confidence interval) 
Salmonella, meaning that there was 1 Salmonella organism per 2 to 4 mL. 
Raw liquid egg whites had -0.92-log10 to -0.24-
log10 Salmonella, meaning that there was 1 Salmonella 
organism per 2 to 8 mL. In addition, FSIS sampling indicated that 
pasteurized egg whites had a Salmonella prevalence of 0.61% from 1995 
to 1999. That prevalence decreased to 0.19% from 2013 to 2018.
---------------------------------------------------------------------------

    \11\ Humphrey, T.J., Baskerville, A., Mawer, S., Rowe, B., and 
Hopper, S. 1989. Salmonella Enteritidis phage type 4 from the 
contents of intact eggs: A study involving naturally infected hens. 
Epidemiology and Infection. 103:415-423.
    \12\ Humphrey, T.J., Whitehead, A, Gawler A.H.L, Henley, A., and 
Rowe, B. 1991. Numbers of Salmonella Enteritidis in the contents of 
naturally contaminated hens' eggs. Epidemiology and Infection. 
106:489-496.
    \13\ Garibaldi, J.A., Lineweaver, H., and Ijichi, K. 1969. 
Number of Salmonellae in commercially broken eggs before 
pasteurization. Poultry Science. 48(3):1096-1101.
    \14\ Gast. R.K., and Beard, C.W. 1992. Detection and enumeration 
of Salmonella Enteritidis in fresh and stored eggs laid by 
experimentally infected hens. Journal of Food Protection. 55(3):152-
156.
    \15\ Food Safety and Inspection Service. 2013. Nationwide Raw 
Liquid Egg Products Baseline Survey. Retrieved from: https://www.fsis.usda.gov/wps/wcm/connect/f83a51b2-35b1-4451-a1cd-aac33e424ad7/Baseline-Raw-Liquid-Eggs.pdf?MOD=AJPERES.
---------------------------------------------------------------------------

    Under ideal conditions (i.e., not from a farm that has Salmonella 
enteriditis (SE)-positive eggs), any Salmonella present in the eggs are 
not expected to reach more than 2.1-log10. As such, FSIS has 
incorporated a new, separate section into the FSIS Food Safety 
Guideline for Egg Products using the pasteurization time and 
temperature from 9 CFR 590.570. This section provides awareness that 
while the time and temperature does not always provide a 5-
log10 reduction of Salmonella in egg whites, with the 
history in footnote 7 above, the compilation of the available 
scientific literature to support the safe use of the time and 
temperature, and the use of specific conditions under which

[[Page 68653]]

the time and temperature may be used, the time and temperature can be 
used as a safe harbor.
    Egg product plants sourcing from farms with SE-positive eggs may be 
unable to support the use of the egg white pasteurization time and 
temperature from 9 CFR 590.570, as these eggs need to be processed in a 
manner that achieves a 5-log10 reduction of Salmonella in 
accordance with the FDA 2009 Shell Egg Final Rule. For plants that are 
processing SE-positive eggs, FSIS included the tables in the appendix 
of the guideline to provide times and temperatures for egg whites to 
achieve the minimum 5-log10 reduction of Salmonella.
    FSIS is not establishing two standards for RTE egg products. The 
standard that official plants must meet is found in proposed 9 CFR 
590.570: Egg products must be produced to be edible without additional 
preparation to achieve food safety. The tables in the appendix of the 
compliance guideline for pasteurization times and temperatures are not 
minimum lethalities, but rather safe harbors for plants to follow and 
be reasonably certain that they will be meeting the requirement in 9 
CFR 590.570, as well as meeting the supporting documentation 
requirement in 9 CFR 417.4(a) and 417.5(a). Consistent with other FSIS 
compliance guidelines, plants are not required to follow the safe 
harbors and may use alternate procedures, if they have adequate 
scientific support (9 CFR 417.4(a) and 417.5(a)) that the alternate 
procedure will meet the requirement in 9 CFR 590.570, as finalized.

S. Shipment of Unpasteurized Egg Products: Proposed 9 CFR 590.410(c)

    Comment: Comments from IPP did not support the proposed change to 
eliminate the requirement that unpasteurized liquid egg products 
transported from one official plant to another be sealed and 
accompanied by an official certificate (9 CFR 590.410). One inspector 
stated that the proposal did not adequately allow for the monitoring of 
the movement of unpasteurized liquid egg product for further 
processing. A second inspector stated that he did not support the 
change to 9 CFR 590.410(c), which requires that bulk shipments must 
state that egg products are for further processing. This commenter 
stated that it would be unwise to advertise what a tanker may be loaded 
with due to the threat of agro-terrorism and bio-terrorism in any 
liquid food industry. A third inspector sought clarification on what 
should happen when the load is shipped to a different location than 
originally intended.
    Response: FSIS disagrees that the proposed change does not 
adequately allow for the monitoring of the movement of unpasteurized 
liquid egg product for further processing. The revised regulations 
provide adequate controls for the monitoring of shipments of 
unpasteurized products by plants and for adequate inspection by IPP. 
Egg products shipped for further processing must be in compliance with 
the revised regulation at 9 CFR 590.504(d)(2), which requires shipments 
of unpasteurized egg products shipped from one official plant to 
another for pasteurization or treatment be sealed by the official plant 
and labeled with the date of loading, per 9 CFR 590.410(c), and 
identified as intended for further processing, per 9 CFR 590.415.
    The documentation and labeling requirements for shipments of 
unpasteurized egg products should raise no terrorism or tampering risks 
from terrorism. Significantly, the tanker identification for egg 
products shipped for further processing is already required at 9 CFR 
590.415. Finally, clarification on IPP actions when the load is shipped 
to a different location than originally intended will be provided to 
IPP through a directive after this rule is finalized.
    Comment: The trade association representing the egg products 
industry asked if the exterior of bulk transport vessels carrying 
unpasteurized egg products must be labeled with the date of loading or 
if a bill of lading or other documentation accompanying the load is 
sufficient.
    Response: The exterior of bulk shipments of unpasteurized egg 
products produced in official plants must bear a label containing the 
words ``date of loading,'' followed by a suitable space in which the 
date the container, tanker truck, or portable tank is loaded must be 
inserted (9 CFR 590.410(c)). Placing the date of loading on a bill of 
lading or other documentation accompanying the load is not sufficient.
    Comment: A comment from an inspector stated that the movement of 
tankers without a PY-200 Egg Products Inspection and Grading 
Certificate (PY-200) would allow tankers carrying nondenatured inedible 
egg products to be washed and used for edible product with only plant 
examination and without FSIS visual inspection. One inspector did not 
support the revision of 9 CFR 590.504(d) as proposed. This commenter 
objected to the proposed paragraph because it eliminates the use of the 
PY-200, which is used to record specific data associated with the 
shipment of unpasteurized egg products.
    Response: The PY-200 serves as a label for bulk shipments of 
unpasteurized egg products. In proposed 9 CFR 590.410(c), FSIS changed 
how bulk shipments are labeled. When this rule is finalized, bulk 
shipments will no longer move under government seal and certificate; 
instead, they will move under company seal and bear a label containing 
the words ``date of loading'' followed by a suitable space in which the 
date the container, tanker truck, or portable tank is loaded must be 
inserted. With the new labeling requirement for bulk shipments of 
unpasteurized products in place, there is no longer a need for the PY-
200 to be used as a label. IPP will still verify that unpasteurized 
product is properly identified, moved to an official plant, and 
pasteurized.
    It is not necessary for IPP to record the specific data associated 
with the shipment of unpasteurized egg products on a PY-200 cited by 
the commenter. When a tanker of unpasteurized egg products arrives at 
an official plant, IPP conduct an organoleptic reinspection of the 
product in accordance with 9 CFR 590.424(b). This can be done without 
marking down the tanker's date and time, temperature of the product 
(which is a data point that should specifically not be taken), the seal 
numbers (which will no longer be a data point as this rule is 
eliminating the use of FSIS seals on tankers of unpasteurized 
products), and the transport vessel's license plate number.
    Under this final rule, FSIS inspectors will also conduct sanitation 
verification activities, which will include tanker inspection, to 
verify that the plant is meeting its Sanitation SOP requirements. 
Official plants are responsible for storing inedible material in 
receptacles of such material and construction that their use will not 
result in the adulteration of any edible product or the creation of 
insanitary conditions (9 CFR 416.3(c)). In addition, a plant's 
Sanitation SOPs will have to address the cleaning of food contact 
surfaces of facilities, equipment, and utensils prior to the start of 
operations (9 CFR 416.12(c)). As such, egg products plants must ensure 
that tankers are cleaned before use and maintained in sanitary 
condition so as not to adulterate product. They must also verify that 
their Sanitation SOPs are current and effective. If they are not, the 
Sanitation SOPs must be revised. The issuance of the PY-200 certificate 
has no bearing on the sanitation of the tanker if the plant designates 
it as inedible and then decides to use it for

[[Page 68654]]

edible purposes. The plant has to comply with the sanitation 
requirements and FSIS IPP will have the opportunity to conduct 
sanitation tasks to verify the plant is meeting those requirements.
    Comment: An inspector asked how plants would be required to 
maintain the cleanliness of equipment used for transporting liquid eggs 
under the proposed regulations.
    Response: Under 9 CFR 416.3(a), equipment and utensils must be 
maintained in a sanitary manner so as not to adulterate product. Egg 
products plants are required under this regulation for ensuring that 
equipment used for transporting liquid eggs is sanitary before and 
after use.

T. Proposed 9 CFR 590.504(d)(2)

    Comment: A comment from an inspector also proposed alternative 
language for 9 CFR 590.504(d)(2). This alternative language permits the 
shipment of nonpasteurized or salmonella positive egg products when 
they are to be pasteurized, repasteurized, or heat treated in another 
official plant and requires these shipments to be in cars or trucks 
with an accompanying certificate stating that the product is not 
pasteurized or is salmonella positive. It allows these shipments to be 
stored in other than the official plant facilities if the inspectors at 
the receiving and origin plants are aware of the disposition of the 
product until it is further processed. It requires nonpasteurized or 
salmonella positive product to bear the identification mark shown in 
Figure 3 of Sec.  590.415.
    Response: FSIS agrees that the language in 9 CFR 590.504(d)(2) 
should allow for the shipment of Salmonella-positive egg products for 
further processing under appropriate controls. Therefore, FSIS is 
changing that paragraph to permit the movement of microbial pathogen-
positive products, provided the products move under establishment 
controls, which include being sealed in a car or truck and labeled per 
9 CFR 590.410(c). As a result of this change, FSIS also modified 9 CFR 
590.410(c) to permit the movement of microbial pathogen-positive 
product. Containers of unpasteurized or microbial pathogen-positive egg 
product must be marked with the identification mark shown in Figure 2 
of Sec.  590.415.
    The proposed language otherwise does not properly reflect FSIS's 
new regulations on the labeling of bulk shipments of unpasteurized or 
microbial pathogen-positive egg products that will become effective 
when this proposal is finalized (9 CFR 590.410(c)). The commenter's 
recommendation requires the shipment to move with an accompanying 
certificate stating that the product is not pasteurized or is microbial 
pathogen-positive and bears the identification mark shown in Figure 3 
of Sec.  590.415. Under this final rule, shipments will not have to 
move with such an accompanying certificate. Instead, they will have to 
bear a label containing the words ``date of loading,'' followed by a 
suitable space in which the date the container, tanker truck, or 
portable tank is loaded must be inserted in accordance with 9 CFR 
410(c). They must also bear a label setting forth the identification 
found in Figure 2 in final 9 CFR 415.

U. Cooked, Salted, and Preserved Eggs

    Comment: A foreign government asked FSIS to exempt cooked, salted, 
and preserved eggs from the egg products inspection regulations related 
to refrigerated storage, transportation, and relevant labeling 
requirements.
    Response: Cooked, salted and preserved eggs are not subject to the 
egg products inspection regulations because they are not egg products 
(i.e., they are not dried, frozen, or liquid eggs).

V. Health and Hygiene

    Comment: Paragraph (g) of 9 CFR 590.560 currently prohibits the use 
of perfume in any area where edible products are exposed. FSIS proposed 
to remove this provision in the proposed rule. One inspector noted that 
removing it could make it possible for employees to wear perfume. As a 
result, according to the commenter, Agency or plant employees may not 
be able to smell spoiled eggs over the scent of the perfumes.
    Response: Under this final rule, official plants must comply with 
the employee hygiene regulations in 9 CFR 416.5, which require that 
plant employees adhere to hygienic practices while on duty to prevent 
adulteration of product and the creation of insanitary conditions. 
Therefore, to meet the regulations, plants are required to provide for 
an environment in which its employees can properly identify spoiled 
egg, which would include prohibiting employees from wearing perfumes 
that restrict employees' ability to smell spoiled eggs. FSIS will 
verify that the plant meets employee hygiene regulations and that no 
spoiled eggs adulterate the egg products.

W. Light

    Comment: Current section 590.520(a) provides prescriptive 
requirements for lighting in egg products plant breaking rooms.\16\ An 
inspector said that removing this regulation could potentially create 
inedible product since adequate lighting is necessary to identify loss 
or inedible eggs.
---------------------------------------------------------------------------

    \16\ The breaking room shall have at least 30 foot-candles of 
light on all working surfaces except that light intensity shall be 
at least 50 foot-candles at breaking and inspection stations.
---------------------------------------------------------------------------

    Response: Section 416.2(c) requires establishments to provide 
lighting of good quality and sufficient intensity in areas where food 
is processed, handled, stored, or examined to ensure that sanitary 
conditions are maintained, and that product is not adulterated. Under 
the final rule, the plant is required to demonstrate that it has met 
this regulatory requirement. If an egg products plant were unable to 
identify loss or inedible eggs and prevent them from being broken 
because of inadequate lighting in the breaking room, IPP will find the 
plant noncompliant with the regulations and will take actions to 
prevent the adulteration of egg products.

X. Ventilation

    Comment: A comment from an inspector noted that the current egg 
products inspection regulations addressing ventilation generally 
require that ventilation provide for a positive flow of outside 
filtered air through rooms and driers (e.g., 9 CFR 590.504(p), 506(c), 
520(d), and 550(a)). This commenter stated that removing the positive 
air flow requirement could potentially produce an unwholesome product 
caused by unfiltered outside air.
    Response: Under 9 CFR 416.2(d), establishments are required to 
provide ventilation adequate to control odors, vapors, and condensation 
to the extent necessary to prevent the adulteration of product and the 
creation of insanitary conditions. Under this final rule, the egg 
products plant will be required to meet this regulation and ensure that 
unfiltered outside air does not adulterate product or create insanitary 
conditions. IPP will verify that the plant meets these requirements; if 
the plant does not, IPP will find the plant noncompliant with the 
regulations and will take actions to prevent the adulteration of egg 
products.

Y. Egg Handling: 21 U.S.C. 1034(d) and 1034(e)(1)

    Comment: The trade association representing egg farmers and egg 
further processing facilities and an egg products industry member 
recommended that two provisions of the EPIA be maintained under current 
regulation: 21 U.S.C. 1034(d) and 21 U.S.C. 1034(e)(1).

[[Page 68655]]

    Section 1034(d) of Title 21 of the U.S. Code authorizes the 
Secretary of Health and Human Services to inspect egg handlers (other 
than plants processing egg products) and their records, as well as the 
records and inventory of other persons required to keep records under 
section 1040 of the EPIA, to assure that only eggs fit for human food 
are used for such purpose and otherwise assure compliance by egg 
handlers and other persons with the requirements of section 1037 
(Prohibited acts). The relevant regulatory provisions are 9 CFR 590.28 
and 590.132.
    Section 1034(e)(1) of Title 21 of the U.S. Code authorizes the 
Secretary of Agriculture to inspect the facility of an egg handler 
(including a transport vehicle) to determine if shell eggs destined for 
the ultimate consumer (A) are being held under refrigeration at an 
ambient temperature of no greater than 45 degrees Fahrenheit after 
packing; and (B) contain labeling that indicates that refrigeration is 
required. The relevant regulatory provision is current 9 CFR 590.50(b).
    Response: The EPIA was not amended by FSIS's proposed rule. 
Therefore, 21 U.S.C. 1034(d) and 1034(e)(1) remain unchanged. In 
addition, FSIS did not propose to eliminate either 9 CFR 590.28 or 9 
CFR 590.132 in the proposed rule and thus will not be doing so in the 
final rule.
    FSIS has combined into a new, single provision at 9 CFR 590.50(a), 
the requirement that shell eggs destined for the ultimate consumer be 
held under refrigeration at an ambient temperature of no greater than 
45 degrees Fahrenheit after packing and the requirement that such eggs 
contain labeling that indicates that refrigeration is required. 
Further, as proposed, FSIS's regulations for shell eggs packed into 
containers destined for the ultimate consumer will now require those 
products to bear safe handling instructions in accordance with 21 CFR 
101.17(h)(1),\17\ instead of being labeled to specifically indicate 
that refrigeration is required. The safe handling instructions read ``. 
. . keep eggs refrigerated . . .'' FSIS's new requirement will take 
effect on the final rule's effective date.
---------------------------------------------------------------------------

    \17\ 21 CFR 101.17(h)(1) says, ``SAFE HANDLING INSTRUCTIONS: To 
prevent illness from bacteria: keep eggs refrigerated, cook eggs 
until yolks are firm, and cook foods containing eggs thoroughly.''
---------------------------------------------------------------------------

Z. Non-Compliance Reports

    Comment: The same egg products industry member also said that 
FSIS's enforcement through issuing noncompliance records (NRs) to 
plants needs to be further improved upon and that FSIS and plants need 
to follow up after the issuance of an NR so that future issues can be 
prevented.
    Response: The NR serves as official notice to an official plant 
that some aspect of its operation is noncompliant. Certain regulations 
require that plants implement corrective actions or preventive measures 
to ensure future compliance (9 CFR 416.15 and 9 CFR 417.3). Depending 
on the NR, IPP may conduct additional inspection activities to verify 
that noncompliance documented on an NR has been corrected and that the 
plant has taken measures to prevent recurrence of the noncompliance 
(see FSIS Directive 5000.1, Verifying an Establishment's Food Safety 
System).
    In addition, FSIS has numerous directives and notices that state 
that when noncompliance is found, IPP are to issue an NR to the 
establishment. The directives or notices typically state which 
regulation to cite on the NR. FSIS has also strengthened its approach 
to noncompliance and made it more data-driven. FSIS utilizes Early 
Warning Alerts through its Public Health Information System,\18\ an 
additional tool for IPP, which are based on adverse trends in Public 
Health NRs \19\ and give IPP the data to be able to determine trends 
and take appropriate actions. The Office of Field Operations typically 
has work unit meetings concerning new instructions to the field, 
including instructions on how to document noncompliance. FSIS training 
for the field includes training on new instructions issued to the 
field, again including instructions on how to document noncompliance.
---------------------------------------------------------------------------

    \18\ The Public Health Information System is a dynamic, 
comprehensive data analytic system that collects, consolidates and 
analyzes data in order to improve public health. https://www.fsis.usda.gov/wps/portal/fsis/topics/inspection/phis..
    \19\ https://www.fsis.usda.gov/wps/portal/fsis/topics/data-collection-and-reports/fsis-data-analysis-and-reporting/data-reporting/public-health-regulations.
---------------------------------------------------------------------------

AA. Water Supply and Water, Ice, and Solution Reuse

    Comment: Two comments from students requested clarification 
regarding the use of reconditioned water in 9 CFR 416.2(g)(4). One of 
them asked that FSIS define ``raw product'' and provide further 
clarification on the approved uses of reconditioned water that is 
processed through advanced wastewater treatment facilities. The other 
saw the same conflict within the regulation and indicated that more 
specificity is needed for this part of the rule.
    Response: Reconditioned water that is processed through advanced 
wastewater treatment facilities may be used in official plants. Any 
product, facilities, equipment, and utensils that come into contact 
with reconditioned water must undergo a separate final rinse with non-
reconditioned water that meets the criteria prescribed in 416.2(g)(1). 
Therefore, once this rule is finalized, reconditioned water may be used 
in egg products plants on shell eggs prior to breaking and on 
facilities, equipment, and utensils within the plant. If reconditioned 
water is used on shell eggs, facilities, equipment, or utensils, they 
must be rinsed with non-reconditioned water prior to breaking or use (9 
CFR 416.2(g)(4)).

BB. Hold and Test (9 CFR 590.504(e))

    Comment: FSIS received two comments regarding its hold and test 
policy for egg products in 9 CFR 590.504(d): One from the trade 
association representing egg farmers and egg further processing 
facilities supporting it and one from the individual working in a field 
allied with the egg products industry stating that it was not 
necessary.
    Response: Requiring egg products plants to control product pending 
the receipt of pathogen test results has been a long-standing feature 
of the egg products inspection regulations (9 CFR 590.504(d)). In the 
rule, FSIS did not propose to change this policy, but revised its 
wording to make clear that egg products plants that move product that 
has been sampled by the Agency or the plant, before receiving test 
results, must maintain control of the products represented by the 
sample pending the test results (83 FR 6327).
    An official plant's failure to maintain control of product pending 
FSIS or plant pathogen test results endangers public health. Not 
allowing product to move into commerce until the results of any testing 
for adulterants become available eliminates this concern. This is also 
consistent with the policy for other FSIS-regulated meat and poultry 
RTE products.

CC. Plant Testing

    Comment: A comment from the individual working in a field allied 
with the egg products industry stated that there is too much 
variability in egg product industry testing methods, and recommended 
that FSIS establish a Salmonella testing method that all egg products 
producers be required to use. This commenter also said that 
standardizing test methods across the industry will allow for better 
analysis of results.

[[Page 68656]]

    Response: To gain efficiencies and best protect public health, FSIS 
is moving towards a sampling program that is focused on production 
volume rather than the number of products produced. FSIS believes this 
approach will allow for a more risk-based allocation of samples. It 
will also align with our other sampling projects.
    To ensure adequate pasteurization of egg products, egg products 
plants are required to sample and analyze pasteurized egg products and 
heat-treated dried egg whites for the presence of Salmonella (9 CFR 
590.580(b)). Currently, laboratories that conduct such analyses for 
plants must participate in FSIS's Pasteurized Egg Product Recognized 
Laboratory (PEPRLab) Program. Under the PEPRLab Program, recognized 
laboratories must use a rapid screening method that is equivalent to 
conventional culture methods in their testing program. If they do not, 
they must use one of the following three cultural methods as their 
primary protocol for egg product analysis:
    AMS--Laboratory Methods for Egg Products--Section I (1993 revision) 
and Section VII (1994 revision),
    FSIS method--Microbiology Laboratory Guidebook (MLG) online, 
Chapter 4--Isolation and Identification of Salmonella from Meat, 
Poultry, and Egg Products, or
    FDA method--Bacteriological Analytical Method (BAM) online, Chapter 
5--Salmonella.
    Sixty days after the publication of this final rule, FSIS will 
discontinue the PEPRLab Program. As a result, laboratories will no 
longer need to be accredited under it to perform microbiological 
testing for egg products plants. Egg products plants will be able to 
select commercial or private laboratories to analyze plant 
microbiological samples, such as the Salmonella spp. samples required 
by 9 CFR 590.580. To assist egg products plants with selecting such 
laboratories, FSIS has made available on its website its guide, 
Establishment Guidance for the Selection of a Commercial or Private 
Microbiological Testing Laboratory, which provides criteria for 
selecting a commercial or private microbiological testing laboratory to 
analyze establishment samples.
    Under this final rule, egg products plants are required to ensure 
that microbiological testing meets their food safety needs. Egg 
products plants should clearly communicate their needs to the testing 
laboratory and direct them to any necessary testing protocols or any 
other guidance, including the guide discussed above, on the FSIS 
website. The plant is required to take corrective actions in response 
to positive results (9 CFR 417.3). The plant should not assume that an 
unexpected result is incorrect. Re-sampling or retesting a sample is 
typically not an appropriate action. FSIS is not going to prescribe 
test methods because that would be inconsistent with HACCP regulations 
and inconsistent with other meat and poultry regulations.

DD. 9 CFR Part 430

    Comment: A comment from an inspector said that because egg products 
are RTE, egg products plants should have to comply with 9 CFR part 430, 
``Requirements for Specific Classes of Products,'' because after 
pasteurization, the product is exposed to the environment during 
cooling, adding of non-egg ingredients, and packaging. As such, the 
commenter said, the product should be sampled for Lm.
    Response: Although eggs products are not currently subject to the 
requirements in 9 CFR part 430, Control of Listeria monocytogenes in 
Post-lethality exposed Ready-to-Eat Products (Listeria Rule), FSIS 
currently tests egg products for Lm. FSIS will continue to evaluate the 
data to determine whether Lm contamination is a post-lethality hazard 
of concern for egg products.

EE. Costs

    Comment: Several individuals and students expressed concern about 
the impact of the proposed rule on small businesses. Specifically, some 
of these commenters were concerned about the costs of transitioning to 
a HACCP system, including the range of HACCP development and validation 
costs, and whether establishments would need to hire more personnel and 
provide training. A few commenters noted that the proposed rule would 
improve food safety by preventing outbreaks, but also would be costly 
to small businesses. One individual was concerned that some small 
business operations would stop producing egg products because of the 
costs of implementing HACCP.
    Comments from a trade association representing the egg products 
industry and egg products industry generally supported the proposed 
rule and stated that most egg products plants already have HACCP plans 
and Sanitation SOPs; therefore, according to these commenters, the 
costs of implementing HACCP and Sanitation SOPs should not be a burden 
to businesses. The trade association representing the egg products 
industry and the egg products industry also said that additional costs 
will only increase if the move to mandatory HACCP is further delayed. 
These comments stated that most customers require that egg products 
plants have HACCP systems and that the current prescriptive command-
and-control regulations cause confusion and limit innovation.
    Response: The Agency agrees with the comments from the egg products 
industry that the cost of implementing HACCP and Sanitation SOPs should 
not be a burden to businesses. Comments from outside of the egg 
products industry mention three types of costs: HACCP development, 
validation, and labor costs. In response to these comments, FSIS used 
more recent data including updated wage rates for Agency personnel, 
industry production employees, quality control technicians, quality 
control managers, as well as employee turnover rates. In addition, FSIS 
has updated the following items for inflation: \20\ Travel and overtime 
costs for inspectors, the cost for HACCP development, Sanitation SOP 
development, HACCP training, Sanitation SOP training, and the cost for 
industry to review labels. This update to the Regulatory Impact 
Analysis leads to the conclusion that the rule has costs savings. The 
updated data did not change the Agency's estimates of the regulation's 
impacts on small businesses.
---------------------------------------------------------------------------

    \20\ Bureau of Economic Analysis: Table 1.1.9. Implicit Price 
Deflators for Gross Domestic Product.
---------------------------------------------------------------------------

    Overall, this final rule is expected to be net beneficial, with 
quantified net benefits, because it provides greater flexibility and 
reduces burdensome regulations that limit innovation. For example, 
benefits include reductions in plant submissions to FSIS for waivers, 
labels, and blueprints, as well as reductions in costs from changes in 
inspection.
    In the initial Regulatory Flexibility Act Assessment (RFA) in the 
proposed rule, FSIS estimated that approximately 31 plants could be 
considered small or very small businesses and will reap benefits, as 
will larger businesses. In this final rule, the Agency updated the 
final RFA to include an additional approach to estimating the number of 
small and very small businesses. In the final RFA, FSIS used the 
Agency-assigned HACCP small and very small plant sizes \21\ to examine 
whether small and very small businesses will have cost savings from the 
rule. FSIS estimated that, based on a plant's HACCP size, approximately 
72 of the 81 plants could be considered small or very small businesses 
and, similar to the approach

[[Page 68657]]

used in the proposed rule, these businesses are estimated to have net 
quantified benefits/cost savings as a result of the final rule. The 
final RFA also includes a discussion comparing expected net cost 
savings to revenue and finds that the expected net cost savings are not 
significant compared to the revenue at the majority of small 
businesses. FSIS estimated that plants will experience an average 
annual cost savings of $5,500 \22\ per plant at the 7% discount rate 
and $5,800 per plant at the 3% discount rate for the mid-range 
estimates.
---------------------------------------------------------------------------

    \21\ HACCP production size classes: Large establishments, with 
500 or more employees; small establishments, with 10-499 employees; 
and very small establishments, with fewer than 10 employees or 
annual sales of less than $2.5 million.
    \22\ More information on the impact to small businesses can be 
found in the Regulatory Flexibility Act section of the proposed rule 
(83 FR 6344-6345).
---------------------------------------------------------------------------

    FSIS does not expect costs for developing a HACCP system to be 
overly burdensome for small plants. HACCP development costs and 
training are included in the range of the total costs and benefits 
shown in Table 1. Even with the inclusion of varying HACCP development 
costs, the final rule's mid-range estimates at the 3 and 7 percent 
rates show net benefits. In addition, most of the 81 egg products 
plants operate under a HACCP system. A 2014 survey by Research Triangle 
Institute (RTI) International, the ``2014 Egg Products Industry 
Survey'',\23\ showed that 93 percent of egg products plants already use 
written HACCP plans. With 93 percent of egg products plants already 
under a HACCP system, many have incurred additional unnecessary costs 
from complying with FSIS requirements in terms of command-and-control 
regulations and by processing under their own HACCP systems. By 
operating under a HACCP system alone, egg products plants can use plant 
resources in a more efficient manner while controlling for hazards in 
innovative ways in their HACCP plans.
---------------------------------------------------------------------------

    \23\ RTI International. 2014. ``Survey of Egg Packing and Egg 
Products Processing Plants.'' Revised Final Report. RTI Project no. 
0211740.015.001. 3040 Cornwallis Rd., P.O. Box 12194 Research 
Triangle Park, NC 27709-2194.
---------------------------------------------------------------------------

    Although this final rule includes compliance dates of two years for 
HACCP regulations and one year for Sanitation SOPs, plants may begin 
operating under HACCP and Sanitation SOP regulations at earlier dates, 
provided FSIS verifies their compliance with the regulations. FSIS 
provided these longer compliance periods to give plants which do not 
have HACCP plans in place additional time to meet FSIS requirements.
    Comment: Several individuals and students stated that FSIS should 
provide some type of reimbursement program, tax rebates, subsidies, or 
other forms of reimbursement or aid to businesses for the changes 
described in the proposal.
    Response: Forms of aid, tax rebates, or subsidies are beyond the 
authority of the Agency and the scope of the proposed rule. Notably, 
FSIS has developed the FSIS Food Safety Guideline for Egg Products. 
This guidance is designed to help small and very small plants meet the 
regulatory pasteurization requirements by providing the best practice 
recommendations by FSIS, based on the best scientific and practical 
considerations. The Agency is also making available the Egg Products 
Hazards and Controls Guide, and the Compliance Guideline for Hazard 
Analysis Critical Control Point (HACCP) Systems Validation, both 
mentioned earlier in this document.
    Comment: Several individuals stated that the proposed rule would 
increase the price of shell eggs and egg products. One individual 
stated that the proposed rule would be good for consumers, as long as 
the costs were low enough not to affect pricing. One individual said 
that an increase in the price of eggs or egg products would not be 
worth any resulting food safety benefit.
    Response: While FSIS regulates official egg products plants and 
their processing operations, the Agency does not generally regulate 
shell eggs outside of egg products plants, except when checking to 
ensure that shell eggs packed into containers destined for the ultimate 
consumer meet the packaging and labeling requirements of the EPIA and 9 
CFR 590.50. However, FSIS analyzed the final rule's impacts and found 
that it should not increase the price of liquid, frozen, dried egg 
products. Egg products plants would be unlikely to pass any benefits or 
costs onto purchasers because the marginal costs or cost savings of 
implementing a HACCP system are not enough to significantly change the 
price for the product sold. In addition, price changes for egg products 
are unlikely because no one firm has enough market power to influence 
the price of egg products. Buyers and sellers are numerous and well 
informed so that all elements of monopoly are absent, and the market 
price of a commodity is beyond the control of individual buyers and 
sellers.
    The price consumers face when purchasing a final product will 
likely not be affected from changes to the production of egg products, 
because egg products are often intermediary goods or one ingredient in 
a final product such as candy or baked goods. In addition, the fixed 
costs associated with the final rule are focused on the development of 
a HACCP system, and these firms operate for a long period of time. 
Fixed costs would not affect the average price of egg products.
    Comment: An inspector said that the RTI Egg Products Industry 
Survey \24\ was misleading because it stated that 93 percent of egg 
products plants use a written HACCP plan, but the overall response rate 
of the survey was only 72 percent. This individual questioned whether 
the 72 percent response rate meant that FSIS's estimates of HACCP 
reassessment costs was only 72 percent accurate. The egg products 
industry generally agreed with the survey that most plants already use 
HACCP. In addition, a trade association representing the egg products 
industry stated that its members are required to have HACCP.
---------------------------------------------------------------------------

    \24\ RTI International. 2014. ``Survey of Egg Packing and Egg 
Products Processing Plants.'' Revised Final Report. RTI Project no. 
0211740.015.001. 3040 Cornwallis Rd., P.O. Box 12194 Research 
Triangle Park, NC 27709-2194.
---------------------------------------------------------------------------

    Response: FSIS is satisfied with the design and response rate for 
the RTI Egg Products Industry Survey. RTI checked for nonresponse bias 
and concluded that the establishments that responded, adequately 
represented the industry. RTI also weighted the response data to 
account for non-responders. FSIS used the weighted RTI survey data 
throughout the Regulatory Impact Analysis.
    The average paper-survey response rate for organizations is 35.7 
percent, as shown in studies done in the U.S. from 2000 to 2005.\25\ 
The response rate for the RTI Egg Products Industry Survey was 72 
percent, far exceeding the average.
---------------------------------------------------------------------------

    \25\ Baruch, Yehuda and Holtom, Brooks. The Tavistock Institute, 
2008. ``Survey response rate levels and trends in organizational 
research.'' Human Relations, Volume 61(8): 1139-1160. SAGE 
Publications http://journals.sagepub.com/doi/pdf/10.1177/0018726708094863.
---------------------------------------------------------------------------

    Comment: An independent consultant stated that it is reasonable to 
conclude that there will be no net deregulatory savings and that there 
will be possible net social costs from the rule because FSIS's cost 
savings estimate is so small. According to the comment, FSIS's cost 
estimates contain many uncertainties and do not contain variability and 
uncertainty analyses. According to an individual, FSIS did not include 
the long term and maintenance costs of HACCP development in the cost 
estimate, leading to an underestimation of costs.
    The independent consultant also stated that the rule does not 
create benefits for egg products plants, such as improved efficiencies. 
However, the comment said that industry commenters would be better 
equipped to determine if FSIS's cost-benefit analysis is correct.

[[Page 68658]]

    The independent consultant also argued that FSIS did not 
substantiate its claims that the rule will result in improvements to 
public health.
    Response: The final rule's mid-estimates at the 3 and 7 percent 
rates show net benefits consistent with the proposed economic analysis 
(83 FR 6343). The estimate of net benefits does include both positive 
and negative numbers, but it is expected that the net benefits are more 
likely to be positive. The analysis accounts for uncertainty by 
including a range of costs. A more formalized uncertainty analysis is 
not justified by the small impact that this rule is likely to have. 
Please see Table 19 Total Costs and Net Benefits in this final rule. In 
addition, the quantitative components of the cost saving estimates are 
derived from the elimination of waivers and blueprint submissions to 
FSIS, generic labeling savings, and savings from the reduction in 
overtime and holiday pay for inspection paid by industry. These 
submission processes and payments have less uncertainty and are based 
on Agency data. FSIS did include ranges of costs for items like HACCP 
development in the total cost estimates and low, mid, and high 
estimates of total costs, total benefits, and total net benefits (see 
Table 1) to show variability and uncertainty. FSIS also discounted and 
annualized costs and benefits at a 3 percent and 7 percent discount 
rate to show additional variability in the estimates.
    FSIS did account for long-term maintenance costs in the form of 
reassessment costs and training for HACCP implementation. The total 
costs for HACCP development of $4.3 million as shown in Table 7 of the 
economic analysis of the final rule were based on costs that occur over 
a period of 10 years at a 7 percent discount rate. The costs for annual 
reassessment of HACCP plans, which occur on an annual basis beyond the 
first year of development, were included in the HACCP cost estimated. 
Long term employee training costs were also included in the cost 
estimated.
    By requiring a HACCP system in egg products plants, benefits will 
increase in several ways. Currently, FSIS estimates 93 percent of 
plants produce egg products with voluntary HACCP systems, as well as 
operating under the current required regulatory structure. As is noted 
above, FSIS expects that plants, with existing HACCP plans, will reduce 
their costs by operating in one system, rather than contributing 
resources into two different systems. The current regulations are 
overly prescriptive and not flexible. They do not, for example, allow 
plants to tailor their control systems to the needs of their plant and 
processes. They do not allow plants to innovate regarding facility 
design, construction, and operations, and they are unnecessary to 
define the specific measures to achieve sanitation requirements. By 
eliminating the command and control regulatory constraints and allowing 
plants to adopt a more flexible system, they should increase 
efficiency. Similarly, these same command and control requirements will 
continue to have the potential to interfere with innovation at egg 
production plants as they implement new production systems as well as 
more streamlined safety systems in the future. As a result, moving to a 
HACCP based system will allow plants to be more efficient over the 
long-term relative to the existing system. Also, as described in the 
foregoing, FSIS received comments from the egg products industry and a 
trade association representing the egg product industry that supported 
requiring plants to develop and implement HACCP Systems and Sanitation 
SOPs.
    FSIS is not claiming that this rule provides a significant 
improvement in public health outcomes relative to the current 
regulatory system. This rule is intended to remove regulatory barriers 
to innovation and remove unnecessary costs from the current system 
without reducing the public health protections provided by the current 
system.
    Comment: An individual stated that unnecessary procedures might 
overcomplicate the system or increase the cost of egg products. Another 
individual said that if by implementing the proposed regulations FSIS 
can eliminate steps and decrease production and inspection costs, it 
should be done, as long as it does not jeopardize anyone's health or 
safety. This commenter also suggested that the money saved from not 
hiring IPP under the proposed changes to inspection be used towards 
lengthening and strengthening the new and more efficient process.
    Response: FSIS believes that by implementing a HACCP-based system, 
it will be eliminating the unnecessary procedures that are currently 
overcomplicating the system. At the same time, the HACCP-based system 
will improve the effectiveness of egg products production and 
inspection. The rule does change the way egg products plants are 
inspected by moving IPP into patrol assignments. Patrol assignments 
will allow FSIS to maintain the same level of food safety while 
allocating IPP more effectively across plants. The Agency will receive 
cost savings from attrition, because FSIS will not need to hire new IPP 
for continuous egg products plant inspection.

FF. Food Ingredients Used During the Production of Egg Products

    After the comment period ended, FDA suggested to FSIS alternative 
language for paragraphs (a)(1) and (2) of 9 CFR 590.435 that would more 
easily and accurately cover the use of food ingredients in egg 
products. Food ingredients (whether added directly or indirectly, 
including sources of radiation) used during the production of egg 
products are subject to regulation by FDA under the Federal Food, Drug, 
and Cosmetic Act (FD&C Act). Specifically, ``food additives'' as 
defined under 21 U.S.C. 321(s) and ``color additives'' as defined under 
21 U.S.C. 321(t) must be authorized for that use (see 21 U.S.C. 348 and 
379e). The definition of a ``food additive'' excepts certain uses, 
including uses that are generally recognized as safe among experts 
qualified by scientific training and experience to evaluate its safety 
(see 21 CFR 170.30) and prior sanctioned uses (see 21 CFR part 181).
    Paragraphs (a)(1) and (2) of 9 CFR 590.435 will continue to 
prohibit the use of food additives, sources of radiation, and color 
additives in egg products unless such use is authorized under the FD&C 
Act. FSIS is moving from paragraph (a)(1) to new paragraph (a)(3) the 
requirement that substances and ingredients used in the processing of 
egg products capable of use for human food be clean, wholesome, and 
unadulterated.

III. Executive Orders 12866, 13563, and 13771 and the Regulatory 
Flexibility Act

    Executive Orders 12866, 13563, and 13771 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order (E.O.) 13563 emphasizes the importance of quantifying both costs 
and benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This final rule has been designated a ``significant'' 
regulatory action under section 3(f) of E.O. 12866. Accordingly, the 
rule has been reviewed by the Office of Management and Budget under 
E.O. 12866.
    FSIS has updated the costs and benefits from 2016 to 2019 dollars 
in this final regulatory impact analysis as compared to the Preliminary 
Regulatory

[[Page 68659]]

Impact Analysis (PRIA) published in the proposed rule. These changes 
include: Updated wage rates for Agency personnel, industry production 
employees, quality control technicians, quality control managers, and 
turnover rates for employees. In addition, FSIS has updated the 
following items for inflation: \26\ Travel and overtime costs for 
inspectors, the cost for HACCP development, Sanitation SOP development, 
HACCP training, Sanitation SOP training, and the cost for industry to 
review labels.
---------------------------------------------------------------------------

    \26\ Bureau of Economic Analysis: Table 1.1.9. Implicit Price 
Deflators for Gross Domestic Product.
---------------------------------------------------------------------------

Need for Regulatory Action

    The final rule will enable official plants to increase efficiency 
from complying with less burdensome regulations. The current ``command 
and control'' egg products inspection regulations will be changed to 
more flexible regulatory requirements. Under this final rule, egg 
products plants will be required to develop and maintain HACCP systems. 
A HACCP system allows greater flexibility for producers to realize 
increased production efficiency. In addition, the final rule will allow 
plants to use different pasteurization methods. With 93 percent of egg 
products plants already under a HACCP system,\27\ many have incurred 
additional unnecessary costs from complying with FSIS requirements in 
terms of ``command and control'' regulations and by processing under 
their own HACCP systems. By operating under the HACCP system alone, egg 
products plants can use plant resources in a more efficient manner 
while controlling for hazards in innovative ways in their HACCP plans.
---------------------------------------------------------------------------

    \27\ RTI International. 2014. ``Survey of Egg Packing and Egg 
Products Processing Plants.'' Revised Final Report. RTI Project no. 
0211740.015.001. 3040 Cornwallis Rd., PO Box 12194 Research Triangle 
Park, NC 27709-2194. OMB No. 0583-0162.
---------------------------------------------------------------------------

    Furthermore, regulatory action is warranted by the non-negligible 
public health risks associated with pasteurized egg products. The FSIS 
2005 risk assessment estimated 5,500 cases of Salmonella per year due 
to pasteurized liquid egg products. This represents 0.5% of the 
approximately 1.03 million annual domestically acquired foodborne 
illnesses caused by Salmonella.\28\ In addition, there were four 
Salmonella outbreaks between 2007 and 2012 that were possibly caused by 
contaminated pasteurized egg products.\29\ Also, because the Food Code 
recommends pasteurized egg products to highly susceptible populations 
(FDA 2013 Food Code, Sec. 3-8), process control failures in the 
production of pasteurized egg products have the potential for 
especially serious health outcomes. By requiring egg products plants to 
operate in a HACCP system, the rule allows plants more flexibility to 
tailor their control systems to address any food safety requirements. 
HACCP has been proven to be the best framework for building science-
based process control into food production systems to prevent food 
safety hazards.30 31
---------------------------------------------------------------------------

    \28\ Scallan et al., 2011, Emerging Infectious Diseases 17(1): 
7--15.
    \29\ Gurtler et al., 2013, Foodborne Pathogens and Disease, 
10(6):492-499.
    \30\ Neal D. Fortin, Food Regulation: Law, Science, Policy, and 
Practice, (Hoboken, NJ: John Wiley and Sons, 2017) 181.
    \31\ Rose BE, Hill WE, Umholtz R, Ramnsom GM, James WO. 2002. 
``Testing for Salmonella in raw meat and poultry products collected 
at federally inspected establishments in the United States, 1998 
through 2000.'' J Food Prot 65:937-947.
---------------------------------------------------------------------------

Baseline of the Egg Products Industry

    As of May 26, 2020, egg products are produced under FSIS 
jurisdiction by 81 egg products plants. Egg products include liquid, 
frozen, and dried whole eggs, whites, yolks, and various blends with or 
without non-egg ingredients. For background, according to the FSIS 
Public Health Information System (PHIS) data, we estimated that the egg 
products industry produced 1.8 billion pounds of dried, frozen, and 
liquid egg products for distribution in commerce and produced 4 billion 
pounds of liquid unpasteurized product for further processing in 
2014.\32\ Liquid egg products are produced in 73 percent of plants and 
accounted for 19 percent of all egg products marketed as finished 
product in 2014.\33\ Liquid egg products represent the largest product 
type produced by egg products plants.
---------------------------------------------------------------------------

    \32\ In the Fiscal Year 2014, the monthly average production 
volume was used to calculate the annual estimate for 77 egg products 
plants in the PHIS database.
    \33\ In the Fiscal Year 2014, the monthly average production 
volume was used to calculate the percentage for 77 egg products 
plants in the PHIS data.
---------------------------------------------------------------------------

    A survey by RTI International in 2014, Egg Products Industry 
Survey,\34\ showed that 93 percent of egg products plants use a written 
HACCP plan to address at least one production step in their 
process.\35\ The remaining 7 percent will need to develop HACCP plans 
under this final rule, as well as any of the 93 percent of egg products 
plants that have HACCP plans for some egg products, but not for others.
---------------------------------------------------------------------------

    \34\ RTI International. 2014. ``Survey of Egg Packing and Egg 
Products Processing Plants.'' Revised Final Report. RTI Project no. 
0211740.015.001. 3040 Cornwallis Rd., PO Box 12194, Research 
Triangle Park, NC 27709-2194.
    \35\ RTI International. 2014. ``Survey of Egg Packing and Egg 
Products Processing Plants.'' Revised Final Report. RTI Project no. 
0211740.015.001. 3040 Cornwallis Rd., PO Box 12194, Research 
Triangle Park, NC 27709-2194.
---------------------------------------------------------------------------

    This final rule will require that egg products plants maintain 
Sanitation SOPs equivalent to the specifications of FSIS. Ninety-one 
percent of egg products plants already conduct sanitation procedures 
for food contact surfaces either daily or more frequently and document 
those procedures for Sanitation SOPs.\36\
---------------------------------------------------------------------------

    \36\ RTI International. 2014. ``Survey of Egg Packing and Egg 
Products Processing Plants.'' Revised Final Report. RTI Project no. 
0211740.015.001. 3040 Cornwallis Rd., PO Box 12194, Research 
Triangle Park, NC 27709-2194.
---------------------------------------------------------------------------

    Egg products production is easily the least labor-intensive process 
of the industries and products that FSIS regulates. Egg products plants 
tend to be highly mechanized and staffed with relatively low numbers of 
employees. Therefore, the large majority (88 percent) of egg products 
plants fall into either the HACCP size small or very small size 
category. In this section, FSIS discusses the size of individual 
plants. For a discussion of the size of egg products businesses under 
the Small Business Administration's (SBA) definition, see the final 
Regulatory Flexibility Analysis section of this document.

                                Table 2--Egg Products Plants and Total Processes
----------------------------------------------------------------------------------------------------------------
                                                                                                      Total
                   Plants                         Breaking          Liquid           Dried          processes
----------------------------------------------------------------------------------------------------------------
81..........................................              59               55               18              132
----------------------------------------------------------------------------------------------------------------

    FSIS inspection of egg products plants includes 95 inspection 
program personnel (IPP), who conduct daily pre-operational sanitation 
inspections and monitor sanitary conditions of the plant premises, 
facilities, and equipment

[[Page 68660]]

continually during operations at every egg products plant in multiple 
shifts. FSIS IPP are responsible for observing the cleanliness, type, 
and wholesomeness of raw materials and finished products, the handling 
of ingredients, pasteurization, packaging, labeling, freezing, storing, 
and all other operations related to the processing and production of 
egg products.

Expected Cost of the Final Rule

    Presented here are economic analyses for the breaking of shell 
eggs, the production of pasteurized liquid egg products (including 
frozen egg products), and the production of pasteurized dried egg 
products. Also provided are estimated government costs associated with 
this final regulation. All recurring and one-time cost estimates are in 
2019 dollars, and discount rates of 3 percent and 7 percent are used to 
calculate annualized costs and savings over a 10-year period. For the 
purposes of the estimate, FSIS did not consider plant HACCP size 
because of the regularity in size explained previously (88 percent are 
small or very small plants). FSIS does not anticipate costs experienced 
by very small and small plants to differ greatly from those experienced 
by larger plants, because this final rule does not require any major 
capital, structural, or machinery investment or the hiring of 
additional employees, which can impose a large burden on very small or 
small plants.
    Egg products plant personnel compensation (wages and benefits) that 
plants will need to provide to their employees because of the final 
regulation is derived using Bureau of Labor Statistics Occupational 
Employment Statistics wage rates and National Compensation Survey 
benefits percentages. The wage rate for a quality control (QC) manager 
is estimated to be $55.34 per hour; for supervisors or QC technicians 
$36.63 per hour; and for production workers $14.23 per hour.\37\ Plants 
may pay employees for benefits such as paid leave, health insurance, 
and retirement and savings, and FSIS applied a benefits and overhead 
factor \38\ of two to the hourly wage rate to estimate a total 
compensation rate for a QC manager at $110.68 per hour; and for 
supervisors or QC technicians at $73.26 per hour; and for production 
workers at $28.46 per hour.
---------------------------------------------------------------------------

    \37\ Estimates obtained from the Bureau of Labor Statistics May 
2019 National Industry-Specific Occupational Employment and Wage 
Estimates, for Management Occupations (Occupational Code 11-3051), 
https://www.bls.gov/oes/current/oes113051.htm, Food Scientists and 
Technologists (19-1012), https://www.bls.gov/oes/current/oes191012.htm, and Production Occupations (51-3023) https://www.bls.gov/oes/current/oes513023.htm.
    \38\ This analysis accounts for fringe benefits and overhead by 
multiplying wages by a factor of two.
---------------------------------------------------------------------------

Hazard Analysis & Critical Control Points (HACCP) Systems
    The cost estimates for HACCP implementation include costs 
associated with plan development and reassessment, training, and 
monitoring and recordkeeping costs. If egg products plants follow 
current time/temperature regulations, FSIS will accept their approach, 
and FSIS will not require that plants do a significant amount of 
analysis in their HACCP plan. Upon completion of the hazard analysis 
and development of the HACCP plans, plants are required to determine 
whether their HACCP plans are functioning as intended. During the 
initial validation period, plants are to test, repeatedly, the adequacy 
of the CCPs, critical limits, monitoring and recordkeeping procedures, 
and corrective actions identified in the HACCP plan.\39\ Plants are 
also required to perform an annual reassessment of their HACCP plans.
---------------------------------------------------------------------------

    \39\ 9 CFR 417.4
---------------------------------------------------------------------------

HACCP Plan Development and Reassessment
    Egg products plants operate to produce a variety of products using 
a number of different processing techniques. Under this final rule, 
each plant will be required to evaluate its processes to determine the 
adequacy of existing written HACCP plans and the number of plans that 
will need to be created or modified to meet the requirements of the 
final rule. A large number of egg products plants already have HACCP 
plans for their processes. These plants will be required to reassess 
their HACCP plans annually, to ensure that their HACCP plans are 
consistent with the regulations in this final rule. For plants that 
currently lack HACCP plans, FSIS estimated the cost of initial plan 
development, annual reassessment, and validation. Under this final 
rule, every egg products plant will be required to reassess the 
adequacy of the HACCP plan at least annually and whenever any changes 
occur that could affect the hazard analysis or alter the HACCP plan. 
Such changes may include, but are not limited to, changes in raw 
materials, source of raw materials, or product formulation. For the 
purposes of estimating costs, FSIS simplified the production of egg 
products into three processes: The breaking of shell eggs, the 
production of pasteurized liquid egg products (including frozen egg 
products), and the production of pasteurized dried egg products.
    Using these three process definitions and data from PHIS, FSIS 
categorized plants by process. For reference, Table 2 above displays 
plants and processes. Using results from the 2014 Egg Products Industry 
Survey, FSIS applied a distribution, by process, of plants responding 
affirmatively to having a written HACCP plan to the population of egg 
products plants.\40\ Using this data, FSIS estimated the number of 
processes in those plants that require a HACCP plan to be developed. 
This information is displayed in Table 3.\41\
---------------------------------------------------------------------------

    \40\ See Appendix A, Section 4.
    \41\ For the purposes of the table, the number of processes was 
rounded to the nearest whole number. For the purposes of cost 
calculations and to be more exact, the Agency kept the actual 
figures, including digits past the decimal point, for instance, the 
number of total processes is actually 25.6181 rather than 26. These 
figures are not exact whole numbers because the Agency used the 
survey participant responses for which processes they use, as 
percentages of the total survey responses. These percentages were 
used to derive the total number of establishments that use each 
process applying that to the total population of egg products plants 
in Agency data (please see appendix A).

             Table 3--Processes Without Written HACCP Plans
------------------------------------------------------------------------
     Breaking            Liquid             Dried       Total  processes
------------------------------------------------------------------------
              9                 13                  4                26
------------------------------------------------------------------------


[[Page 68661]]

    For plan development and reassessment, FSIS used the Cost of Food 
Safety Investments \42\ final report, updated with the GDP Deflator and 
updated labor costs from 2014 to 2019 dollars, and, with the assumed 
benefits and overhead factor of two. FSIS estimated the costs in 2019 
dollars for plan development and reassessment using the low estimate, 
(plan developed internally--low estimate -$18,315), the high estimate 
(plan developed with consultant--high estimate--$45,359), and the 
average of the mid-estimates of the plan developed with a consultant 
and internally ($33,435).\43\ FSIS also incorporated an initial 
validation cost of $29,304 ($14,652--$43,956) and an ongoing (yearly) 
reassessment cost of $854 ($427--$1,281). FSIS applied these estimates 
to the number of processes needing HACCP plans to determine the cost of 
HACCP plan development, validation, and reassessment, displayed in 
Table 4.
---------------------------------------------------------------------------

    \42\ RTI International. Cost of Food Safety Investments Final 
Report. Available at: https://www.fsis.usda.gov/wps/wcm/connect/0cdc568e-f6b1-45dc-88f1-45f343ed0bcd/Food-Safety-Costs.pdf?MOD=AJPERES. These cost figures were adjusted for 
inflation using the GDP Deflator from 2014 to 2019.
    \43\ For plan development costs, in order to mitigate outliers, 
the Agency selected the greater of the two lowest costs between 
developing the plan internally and the cost for developing with a 
consultant for the low estimate, and the lesser of the two highest 
costs between developing the plan internally or with a consultant 
for the high estimate.

                                      Table 4--Estimated HACCP Plan Development, Validation, and Reassessment Costs
                                                                        [$1,000s]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     Cost estimates (low-high)
             Cost component              ---------------------------------------------------------------------------------------------------------------
                                                Initial cost *             Recurring cost       Annualized 3% over 10 years  Annualized 7% over 10 years
--------------------------------------------------------------------------------------------------------------------------------------------------------
Development.............................      856.0 (469.2-1,160.4)                          0            97.4 (53.4-132.1)           113.9 (62.4-154.4)
Initial Validation * for 25 New Plans...      750.7 (375.4-1,126.1)                          0            85.4 (42.7-128.2)            99.9 (49.9-149.8)
Annual Reassessment **..................  3,208.2 (1,604.1-4,812.4)  3,980.8 (1,990.4-5,971.2)    3,892.9 (1,946.4-5,839.3)     3,878.0 (1,939.0-5817.0)
--------------------------------------------------------------------------------------------------------------------------------------------------------
* These estimates are calculated using the actual number of unrounded processes or 25.6181 processes.
** Initially, plants with existing HACCP plans will begin reassessing in year 1. Plants without existing plans, after developing their plans in year 1,
  will begin reassessing their plans in the following years.

    The above analysis does not include costs associated with taking a 
corrective action when routine monitoring of a CCP detects a deviation 
from an established critical limit. It is not possible to determine the 
costs of these corrective actions, but we expect that, for well-
designed processes with HACCP, these costs will occur infrequently.
HACCP Training and Personnel
    We assume that each egg products plant will employ a QC manager and 
a QC technician to ensure compliance with the final measures. Based on 
the 2014 Egg Products Industry Survey final report, approximately 7 
percent of plants do not employ any HACCP plans.\44\ Thus, we assume 7 
percent of plants (approximately six) will need to obtain training for 
a QC manager, assuming one per plant, and a QC technician and three 
production workers for each processing operation shift (an average of 
1.7 shifts per plant based on the results of the Industry Survey).
---------------------------------------------------------------------------

    \44\ See Appendix A, Section 5.
---------------------------------------------------------------------------

    Although the HACCP system is different than the current system, 
FSIS believes that in egg products plants, only a portion of production 
employees, or a minimum number per shift, will actually receive 
training, given that the duties for most of the production employees 
will remain very similar or even the same when the plant operates under 
HACCP.
    FSIS used initial and recurring annual refresher training cost 
estimates (updated with the GDP Deflator and updated labor costs from 
2014 to 2019 dollars and the assumed benefits and overhead factor of 
two) and the number of hours of training from the Cost of Food Safety 
Interventions \45\ final report. QC managers will be trained initially 
at a cost of $4,282 ($2,141.17-$6,423.51), with an annual refresher at 
a cost of $221.36 ($110.68-$332.04). QC technicians will be trained 
initially at a cost of $3,384 ($1,692-$5,076), with an annual refresher 
at a cost of $147 ($73-$220). An additional opportunity cost for 
training was added to account for the time lost when employees were in 
training at the per hour compensation rate (including wage and benefit 
factor) of the employees being trained for the length of the training 
and for replacement personnel to work covering the time of the 
training. Production employees will also need to be trained; however, 
FSIS assumed that this training will take place on the job, and 
therefore will only impose opportunity costs. We use an annual turnover 
rate of 36.5 percent \46\ to estimate recurring costs due to employee 
separation and the need to train new employees. These estimates are 
displayed in Table 5.
---------------------------------------------------------------------------

    \45\ RTI International. Cost of Food Safety Investments Final 
Report. Available at: https://www.fsis.usda.gov/wps/wcm/connect/0cdc568e-f6b1-45dc-88f1-45f343ed0bcd/Food-Safety-Costs.pdf?MOD=AJPERES. These cost figures were adjusted for 
inflation using the GDP Deflator from 2014 to 2019.
    \46\ Annual total separations rate for nondurable goods, Bureau 
of Labor Statistics Job Openings and Labor Turnover Survey, 2019, 
available at: http://www.bls.gov/news.release/jolts.t16.htm.

                                                                              Table 5--HACCP-Related Training Costs
                                                                                            [$1000s]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                            Cost estimates (low-high)
                              Plants                                  Shifts   -----------------------------------------------------------------------------------------------------------------
                                                                                    Initial training         Recurring training      Annualized 3% over 10 years    Annualized 7% over 10 years
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
6.................................................................          9         87.3 (43.7-131.0)          38.3 (19.2-57.5)               43.9 (21.9-65.8)               44.8 (22.4-67.2)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 68662]]

HACCP Recordkeeping
    The rule requires facilities to record observations when monitoring 
CCPs and to document any deviations and corrective actions. The rule 
requires that an employee not involved in recording observations 
certify such records. Recordkeeping costs include the time it takes to 
make observations and to record the results of those observations, plus 
the cost of certifying and maintaining records. The level and extent of 
recordkeeping for the final rule should not change greatly for egg 
products plants already using HACCP plans. Plants with existing HACCP 
plans are already documenting CCPs, as well as documenting information 
for the current regulations. For these plants, there will be a cost 
savings and reduction in recordkeeping costs, because they are keeping 
records for both a HACCP system and the current regulations.
    FSIS used data from the 2014 Egg Products Industry Survey to 
estimate how many plants do not have HACCP plans, and the number of 
plans needed at these plants. FSIS also estimated the number of shifts 
at those plants.\47\ The cost of recordkeeping is dependent on several 
factors, each of which has to be documented in some manner, such as the 
number of HACCP plans developed by each plant, the number of shifts 
operated by each plant, the number of CCPs per HACCP plan, the number 
of pre-shipment reviews conducted, and any decision-making for hazard 
analysis that may require documentation.
---------------------------------------------------------------------------

    \47\ See Appendix A, Section 6.
---------------------------------------------------------------------------

    The numbers of CCPs in egg products plants likely vary considerably 
across the industry. An FSIS technical expert \48\ suggested four to 
six CCPs per HACCP plan, as an average. Therefore, we assumed that the 
average number of CCPs is five per egg products plant, per plan. We 
assumed 3 minutes (+/-1 minute) for monitoring recordkeeping and 1 
minute (+/- 30 seconds) for certifying per CCP.\49\ From the above 
assumptions, we estimate (Table 6) the annual cost of HACCP 
recordkeeping and monitoring.
---------------------------------------------------------------------------

    \48\ Curtis, P., North Carolina State University, Raleigh, NC. 
October 5, 2001. Personal communication with Catherine Viator, RTI. 
Reported in RTI International. 2002. ``Pathogen Reduction and Other 
Technological Changes in the Meat, Poultry, and Egg Industries.'' 
RTI Project no. 07182.017. 3040 Cornwallis Rd., PO Box 12194 
Research Triangle Park, NC 27709-2194.
    \49\ FSIS estimated these approximate time estimates by first 
hand observation at egg products plants.

                                                Table 6--Annual HACCP Recordkeeping and Monitoring Costs
                                                                        [$1000s]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             Annualized cost estimates (low-high)
                                                                     -----------------------------------------------------------------------------------
                       Plans                            Effective                   Recordkeeping                              Monitoring
                                                      annual shifts  -----------------------------------------------------------------------------------
                                                                        3% over 10 years     7% over 10 years     3% over 10 years     7% over 10 years
--------------------------------------------------------------------------------------------------------------------------------------------------------
26.................................................          11,101    79.0 (52.7-105.3)    79.0 (52.7-105.3)    67.8 (33.9-101.7)    67.8 (33.9-101.7)
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Table 7 presents a summary of the total HACCP-related costs as a 
result of the rule. These figures are annualized over 10 years at 3 
percent and 7 percent discount rates.

                                   Table 7--Total HACCP-Related Industry Costs
                                                   [$1000s] *
----------------------------------------------------------------------------------------------------------------
                                                                 Annualized cost estimates (low-high)
                   Cost component                    -----------------------------------------------------------
                                                            3% over 10 years              7% over 10 years
----------------------------------------------------------------------------------------------------------------
Plan Development and Reassessment...................     4,075.8 (2,042.6-6,099.6)     4,091.8 (2,051.4-6,121.3)
Training............................................              43.9 (21.9-65.8)              44.8 (22.4-67.2)
Recordkeeping & Monitoring..........................            146.8 (86.5-207.0)            146.8 (86.5-207.0)
                                                     -----------------------------------------------------------
    Total...........................................     4,266.4 (2,151.1-6,372.4)     4,283.4 (2,160.3-6,395.5)
----------------------------------------------------------------------------------------------------------------
* Numbers in table may not sum to totals due to rounding.

Sanitation Standard Operating Procedures (Sanitation SOPs) Plan 
Development
    For the most part, plants already have plans for sanitation insofar 
as FSIS already requires certain sanitation procedures. FSIS used 
responses from the 2014 Egg Products Industry Survey,\50\ which 
describes the number of plants where they train their employees on 
Sanitation SOPs, to estimate the percentage of plants that have 
Sanitation SOPs. This accounts for approximately 91 percent of all egg 
products plants. FSIS assumed that if a plant is training production 
employees, then it has a written plan in place that the training is 
based on and will likely meet the requirements of the final rule. FSIS 
then applied this percentage to determine the number of plants that 
will need to develop written Sanitation SOPs (approximately 7). The 
current Sanitation SOP requirements for egg products plants will not 
change greatly, because the basis and standards for the sanitation of 
the plants will remain consistent with the current guidelines. For the 
final rule, the Sanitation SOPs will be created by the plant to meet 
FSIS standards under the HACCP system.
---------------------------------------------------------------------------

    \50\ See Appendix A, Section 1.
---------------------------------------------------------------------------

    FSIS used cost estimates from the Cost of Food Safety Interventions 
\51\ final report, updated for inflation using the GDP Deflator and 
wage rates from 2014 to 2019 dollars and for the benefit factor 
described previously. For plan development, FSIS estimated costs using 
the low estimate (plan developed internally--low estimate--$18,315), 
the high estimate (plan developed with a

[[Page 68663]]

consultant--high estimate, $33,164), and the average of the mid-
estimates of the plan developed internally and with a consultant 
($29,370).\52\ The costs of Sanitation SOP plan development are 
displayed in Table 8. The recurring costs associated with Sanitation 
SOPs can be found in the recordkeeping, monitoring, and training 
sections found below.
---------------------------------------------------------------------------

    \51\ RTI International. Cost of Food Safety Investments Final 
Report. Available at: http://www.fsis.usda.gov/wps/wcm/connect/0cdc568e-f6b1-45dc-88f1-45f343ed0bcd/Food-Safety-Costs.pdf?MOD=AJPERES.
    \52\ For plan development costs, in order to mitigate outliers, 
the Agency selected the greater of the two lowest costs between 
developing the plan internally and the cost for developing with a 
consultant, and the lesser of the two highest costs between 
developing the plan internally or with a consultant.

                                            Table 8--Costs Associated With the Development of Sanitation SOPs
                                                                        [$1000s]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                              Cost estimates (low-high)
                       Cost component                       --------------------------------------------------------------------------------------------
                                                                      Initial cost           Annualized 3% over 10 years    Annualized 7% over 10 years
--------------------------------------------------------------------------------------------------------------------------------------------------------
Development................................................           208.6 (130.1-235.5)               23.7 (14.8-26.8)               27.8 (17.3-31.3)
--------------------------------------------------------------------------------------------------------------------------------------------------------

Recordkeeping
    Under the final rule, plants will be required to maintain daily 
records sufficient to document the implementation and monitoring of 
Sanitation SOPs. FSIS used data from the 2014 Egg Products Industry 
Survey to estimate the proportion of plants keeping sanitation records 
that will meet the requirements of the final rule consisting of 
employee task performance and a log for deviations and corrective 
actions.\53\ FSIS then determined how many of those plants are 
completing recordkeeping tasks daily.\54\ Those plants that are not 
conducting recordkeeping frequently enough (less than daily), or are 
not keeping the correct records during recordkeeping based on the final 
Sanitation SOPs requirements will incur costs to do so.
---------------------------------------------------------------------------

    \53\ See Appendix A, Section 2.
    \54\ At least 1 pre-operational sanitation inspection of product 
contact zones per 9 CFR 416.13 and 416.12(c).
---------------------------------------------------------------------------

    For plants that are not keeping adequate sanitation records, FSIS 
estimated costs of recordkeeping based on the frequency of reported 
recordkeeping tasks. FSIS assumed that each sanitation recordkeeping 
task will be performed by a production employee and will take 
approximately 15 minutes (+/-5 minutes) to complete. A sanitation 
recordkeeping task will be performed daily, unless the plant reported 
performing a task more than daily, in which case FSIS assumed there 
will be one task per shift (an average of 1.7 shifts per plant based on 
the results of the Industry Survey). The average number of shifts was 
calculated using question 5.2 of the survey, which asks respondents 
their total number of production shifts per day.\55\ The responses by 
small and large plants to question 5.2 were combined along with the 
total responses to get percentages for average number of shifts. The 
calculation is 25% x 3 shifts + 18% x 2 shifts + 57% x 1 shift = 1.7 
shifts. Please see Table 9 for the estimated costs to industry for 
implementing Sanitation SOP recordkeeping.
---------------------------------------------------------------------------

    \55\ Please see Appendix A.
---------------------------------------------------------------------------

    FSIS further assumed that a QC technician will review or monitor 
records for approximately 10 minutes (+/-5 minutes) once per day. FSIS 
used the adequacy and frequency of an egg product plant's current 
recordkeeping to estimate the cost to industry for additional 
monitoring of Sanitation SOP recordkeeping. These costs are displayed 
in Table 10.

                                               Table 9--Sanitation SOP Recordkeeping Implementation Costs
                                                                        [$1000s]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  Annualized recordkeeping cost estimates (low-high)
            Current recordkeeping                Recordkeeping  frequency        Number of   -----------------------------------------------------------
                                                                                 plants *           3% over 10 years              7% over 10 years
--------------------------------------------------------------------------------------------------------------------------------------------------------
Meets Requirements..........................  Daily........................              13              39.4 (26.3-52.6)             39.4 (26.3--52.6)
--------------------------------------------------------------------------------------------------------------------------------------------------------
* For number of plants, FSIS multiplies the percentages from the survey for each category by total number of plants (81).


                                                        Table 10--Sanitation SOP Monitoring Costs
                                                                        [$1000s]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    Annualized monitoring cost estimates (low-high)
            Current recordkeeping                Recordkeeping  frequency        Number of   -----------------------------------------------------------
                                                                                 plants *           3% over 10 years              7% over 10 years
--------------------------------------------------------------------------------------------------------------------------------------------------------
Meets Requirements..........................  Daily........................              13              40.6 (20.3-60.9)              40.6 (20.3-60.9)
--------------------------------------------------------------------------------------------------------------------------------------------------------
* For number of plants, FSIS multiplies the percentages from the survey for each category by total number of plants (81).


[[Page 68664]]

Training Costs
    Egg products plants that are implementing new Sanitation SOPs and 
those not in compliance will also need to conduct initial training for 
employees. Using data from the 2014 Egg Products Industry Survey, FSIS 
estimated the number of plants that will need to develop new Sanitation 
SOPs (see Table 11) and the average number of shifts at those 
plants.\56\ FSIS assumed that one QC manager per plant, and one QC 
technician and three production employees per shift will be 
trained.\57\ FSIS assumed the recurring training will occur for all 81 
plants. FSIS used initial and recurring annual refresher training cost 
estimates from the Cost of Food Safety Interventions \58\ final report, 
updated for inflation using the GDP Deflator and wage rates from 2014 
to 2019 dollars and with the assumed benefits and overhead factor of 
two. QC managers will be trained initially at a cost of $2,954.18 
($1,477.09 to $4,431.27) with an annual refresher at a cost of $221.36 
($110.68 to $332.04). QC technicians will be trained initially at a 
cost of $2,505.14 (1,252.57 to 3,757.71) with an annual refresher at a 
cost of $146.52 ($73.26 to $219.78). FSIS added an additional 
opportunity cost to account for the lost hours when employees are in 
training. Production employees will also need to be trained, however, 
FSIS assumed that this training would take place on the job and 
therefore will impose only opportunity costs.
---------------------------------------------------------------------------

    \56\ See Appendix A, Section 3.
    \57\ An FSIS expert has also agreed with the Industry Survey and 
provided the likely staff needing training at a typical egg products 
plant.
    \58\ RTI International. Cost of Food Safety Investments Final 
Report. Available at: https://www.fsis.usda.gov/wps/wcm/connect/0cdc568e-f6b1-45dc-88f1-45f343ed0bcd/Food-Safety-Costs.pdf?MOD=AJPERES.
---------------------------------------------------------------------------

    FSIS included recurring training costs to account for labor 
separation and the need to train new employees. To estimate these 
ongoing costs, FSIS used an annual labor turnover rate of 36.5 percent 
\59\ and applied that percentage to the initial training costs. The 
Sanitation SOP-related training costs due to the rule are displayed in 
Table 11.
---------------------------------------------------------------------------

    \59\ Annual total separations rate for nondurable goods, Bureau 
of Labor Statistics Job Openings and Labor Turnover Survey, 2019, 
available at: http://www.bls.gov/news.release/jolts.t16.htm.

                                                                 Table 11--One-Time and Recurring Sanitation SOP Training Costs
                                                                                            [$1000s]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                            Cost estimates (low-high)
                              Plants                                  Shifts   -----------------------------------------------------------------------------------------------------------------
                                                                                    Initial training         Recurring training      Annualized 3% over 10 years    Annualized 7% over 10 years
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
36................................................................         61       402.7 (238.3-604.1)       189.7 (108.3-300.7)            235.5 (135.4-369.5)            243.3 (140.0-381.1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Table 12 presents a summary of the total Sanitation SOPs-related 
costs due to the rule annualized over 10 years at 3 percent and 7 
percent discount rates.

                             Table 12--Total Sanitation SOPs-Related Industry Costs
                                                   [$1000s] *
----------------------------------------------------------------------------------------------------------------
                                                                      Annualized costs (low-high)
                   Cost component                    -----------------------------------------------------------
                                                            3% over 10 years              7% over 10 years
----------------------------------------------------------------------------------------------------------------
Plan Development....................................              23.7 (14.8-26.8)              27.8 (17.3-31.3)
Recordkeeping & Monitoring..........................           194.3 (110.7-277.8)           194.3 (110.7-277.8)
Training............................................           235.5 (135.4-369.5)           243.3 (140.0-381.1)
                                                     -----------------------------------------------------------
    Total...........................................           453.5 (261.0-674.1)           465.3 (268.1-690.3)
----------------------------------------------------------------------------------------------------------------
* Numbers in table may not sum to totals due to rounding.

Special Handling Statements on Labels
    The final egg products rule requires ``Keep Refrigerated'' or 
``Keep Frozen'' statements for all egg products that require special 
handling to maintain their wholesome condition. Plants currently 
include this information on egg products labels; therefore, this new 
requirement for the industry should not create additional costs.
Costs From Requiring Egg Products Plants To Produce Egg Products That 
Are Edible Without Additional Preparation To Achieve Food Safety
    The final rule requires that egg products plants process egg 
products that are edible without additional preparation to achieve food 
safety. FSIS does not anticipate that these plants will need to change 
their pasteurization practices to meet this requirement and therefore 
will not incur additional costs, except as a part of their normal 
operations in regards to complying with HACCP plan verification and 
monitoring activities. These verification and monitoring activities are 
discussed above as part of the HACCP costs of this final rule for 
recordkeeping and monitoring. Below, the total industry costs are 
presented:

[[Page 68665]]



                                         Table 13--Total Industry Costs
                                                   [$1,000] *
----------------------------------------------------------------------------------------------------------------
                                                                 Annualized cost estimates (low-high)
                   Cost component                    -----------------------------------------------------------
                                                                   3%                            7%
----------------------------------------------------------------------------------------------------------------
HACCP...............................................     4,266.4 (2,151.1-6,372.4)     4,283.4 (2,160.3-6,395.5)
Sanitation SOPs.....................................           453.5 (261.0-674.1)           465.3 (268.1-690.3)
                                                     -----------------------------------------------------------
    Total...........................................     4,719.9 (2,412.2-7,046.5)    4,748.7 (2,428.4--7,085.8)
----------------------------------------------------------------------------------------------------------------
* Numbers in table may not sum to totals due to rounding.

Agency Costs

Training and Personnel
    FSIS employs 95 egg products inspectors that exclusively inspect 
egg products plants. Some egg products plant inspectors already have 
HACCP training from past inspection experience in meat and poultry 
plants. For inspectors without prior experience, FSIS will need to 
train them in the HACCP system. The long-term objective of the Agency 
is to establish an inspection system where inspection program personnel 
will be equally qualified to conduct inspection activities at meat or 
poultry establishments, and egg product plants.
    The Agency anticipates that it will need to train 51 egg products 
inspection personnel \60\ and twenty-four meat or poultry inspectors 
(non-egg products inspectors). Fifty-one of these inspectors will 
require a 4-week training course on HACCP methods called Inspection 
Methods training, and 24 inspectors already trained in HACCP inspection 
will be trained in egg product inspection. The inspection methods 
training for egg products inspection personnel will be longer than for 
other plant personnel because it includes additional topics (e.g., 
processing and slaughter inspection in a HACCP environment, rules of 
practice, and fundamental food microbiology) that not all egg products 
plant personnel need to perform their job. The total costs (including 
travel, lodging, per diem, and training program) for the 4-week 
training program is approximately $6,371.11 \61\ per inspector, and the 
one-week egg product inspection training is approximately $1,274.22 per 
inspector. Therefore, the one-time Agency training costs total 
approximately $355,500 (51 x $6,371.11) + (24 x $1,274.22).
---------------------------------------------------------------------------

    \60\ FSIS Policy Development Staff (PDS) provided the number of 
personnel that will need training. PDS estimated this number by 
contacting each district manager in the field where egg products 
plants are located.
    \61\ This figure is a mean estimate of training costs from FSIS/
OOEET Center for Learning.
---------------------------------------------------------------------------

    Replacement inspectors will be required during periods when egg 
products plant inspectors are being trained. The Agency's district 
offices estimate the cost of replacement inspectors to be $4,005.64 per 
person \62\ for inspection methods training and $1,001.41 per person 
for egg products inspection training. Consequently, the one-time cost 
of replacement inspectors is approximately $228,300 derived from (51 x 
$4,005.64) and (24 x $1,001.41). Thus, the total one-time cost of 
training inspectors at egg products plants is $583,800. Table 14 
provides the summary of the costs associated with inspector training.
---------------------------------------------------------------------------

    \62\ This is the average GSA per diem for meals and hotel 
multiplied by the number of days replacement inspectors will be 
needed to fill positions. http://www.gsa.gov/portal/content/104877.

   Table 14--Inspection Program Training Costs ($1,000) at 3% and 7% Discount Rates Annualized Over 10 Years *
----------------------------------------------------------------------------------------------------------------
                                                                                     Annualized cost estimates
                                                                                 -------------------------------
         Cost component            Number of IPP   Cost per IPP    One-time cost    3% over 10      7% over 10
                                                                                       years           years
----------------------------------------------------------------------------------------------------------------
Inspection Methods Training.....              51             6.4           325.0            37.1            43.4
Egg Products Inspection Training              24             1.3            30.5             3.5             4.1
Replacement IPP.................              75  ..............           228.3            26.0            30.4
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............           584.0            66.6            77.8
----------------------------------------------------------------------------------------------------------------
* Numbers in table may not sum to totals due to rounding.

Total Costs
    Table 15 provides a summary of the estimated total costs for the 
industry and Agency. The table includes annualized costs over 10 years 
at discount rates of 3 percent and 7 percent.

                                              Table 15--Total Costs
                                                   [$1,000] *
----------------------------------------------------------------------------------------------------------------
                                                                 Annualized cost estimates (low-high)
                     Total costs                     -----------------------------------------------------------
                                                            3% over 10 years              7% over 10 years
----------------------------------------------------------------------------------------------------------------
Industry
HACCP...............................................     4,266.4 (2,151.1-6,372.4)     4,283.4 (2,160.3-6,395.5)
Sanitation SOPs.....................................           453.5 (261.0-674.1)           465.3 (268.1-690.3)
 

[[Page 68666]]

 
Agency
IPP Training........................................                          40.6                          47.5
Replacement IPP.....................................                          26.0                          30.4
                                                     -----------------------------------------------------------
    Total...........................................     4,786.5 (2,478.7-7,113.1)     4,826.6 (2,506.3-7,163.7)
----------------------------------------------------------------------------------------------------------------
* Numbers in table may not sum to totals due to rounding.

Expected Benefits of the Final Rule

    The final rule will provide firms in the egg products industry 
greater flexibility and incentives for innovation. Firms derive 
benefits from opportunities to innovate and employ more flexible 
production methods over time. Many egg products plants have already 
adopted the HACCP system for egg product processing. One reason for 
this adoption is buyers of egg products (further egg processors or 
retailers) require the production of egg products to be done under the 
HACCP system. In addition, under a HACCP system, egg products plants 
can attain quality accreditations such as one by the Safe Quality Food 
Institute, which allows egg products plants to access different markets 
inaccessible to non-HACCP processors.
    Given the efficiency gains in different food production facilities 
under FSIS jurisdiction by implementing HACCP, FSIS reasonably expects 
that the egg products industry will gain some efficiency from HACCP 
implementation.
Benefits From Removing Current Regulations
    A large benefit from moving away from the current regulatory 
framework is the lessening of administrative burdens on plants and 
plant personnel. With the movement to a HACCP-based system, IPP will 
change how they inspect egg products plants by ensuring that plants' 
HACCP systems are functioning as intended rather than inspecting for 
compliance with current specifications. This change in how inspection 
is done will allow for improved allocation of resources to more food-
safety tasks and sanitary verifications both for the Agency and for egg 
products plants. It also allows egg product plants to employ resources 
in a manner that more efficiently produces safe product instead of 
allocating resources just to comply with FSIS regulations. For 
instance, instead of sampling product for time and temperature, a plant 
can design a system in which its HACCP plan specifies sampling products 
at a more convenient time in the process, allowing for better personnel 
resource management to improve production efficiency.
    Another aspect of the reduced administrative burden is a reduced 
need for FSIS approval for changes to plant operations that deviate 
from current regulations. For example, official plants will no longer 
need to submit facility blueprints and specifications (plant changes) 
to the Agency when applying for a grant of inspection, nor will they 
need to obtain prior approval from FSIS for equipment and utensils 
proposed for use in preparing edible product or product ingredients. 
The approval process for a waiver to a regulation or for no objection 
to production changes will also be eliminated. These changes provide 
cost savings to industry and the Agency and are quantified below. It 
takes industry on average 100 hours to make an industry submission as 
described above (waiver, plant blueprint, no objection, or equipment 
use), including additional correspondence with FSIS. The Agency spends 
an average of 69 hours to review and approve each submission.
    FSIS receives on average nine submissions per year from egg 
products plants. The submission process involves an egg products 
plant's QC technician providing the initial submission data and follow-
up correspondence with Agency personnel. This follow-up correspondence 
includes responding to FSIS questions with supporting data. The QC 
technician is paid an hourly wage of $73.26 per hour, which includes a 
benefit and overhead rate of two. We assumed an Agency reviewer would 
have a General Schedule 13 salary, step 3, at $101.38 per hour, which 
includes a benefits and overhead factor of two.\63\ Eliminating these 
submission processes will save industry approximately $65,900 annually 
discounted over 10 years at the 7 percent rate. The Agency will save 
approximately $63,000 annually discounted over 10 years at the 7 
percent rate.
---------------------------------------------------------------------------

    \63\ Hourly rate, Washington DC, Office of Personnel Management 
https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2020/general-schedule/.

 Table 16--Industry and Agency Savings From the Elimination of Agency Approval for Plant And Product Processing
                                                     Changes
                                                   [$1,000s] *
----------------------------------------------------------------------------------------------------------------
                                                                          Annualized savings
                    Total savings                    -----------------------------------------------------------
                                                            3% over 10 years              7% over 10 years
----------------------------------------------------------------------------------------------------------------
Industry............................................                          65.9                          65.9
Agency..............................................                            63                            63
                                                     -----------------------------------------------------------
    Total...........................................                         128.9                         128.9
----------------------------------------------------------------------------------------------------------------
* Numbers in table may not sum to totals due to rounding.


[[Page 68667]]

    The HACCP plan provision of the final rule will also give plants 
flexibility to design their pasteurization and sampling procedures. 
Ninety three percent of egg products plants have indicated that their 
plants conduct microbiological testing in addition to those required by 
regulation.\64\ By giving plants the option to sample as determined in 
their HACCP plan, there may be a cost savings from sampling less. The 
final rule specifies that the final product must be produced to be 
edible without additional preparation to achieve food safety. This 
standard provides flexibility to an egg products plant by giving it the 
necessary end result of pathogen-free products without specifying 
direct instructions on the processing method. This allows plants to 
find the most efficient processing or sampling methods to best fit 
their own production process and resources to produce a pathogen-free 
product.
---------------------------------------------------------------------------

    \64\ RTI International. 2014. ``Survey of Egg Packing and Egg 
Products Processing Plants.'' Revised Final Report. RTI Project no. 
0211740.015.001. 3040 Cornwallis Rd., P.O. Box 12194 Research 
Triangle Park, NC 27709-2194
---------------------------------------------------------------------------

Additional Benefits From Generic Labeling
    Additional benefits include cost reductions for the Agency and for 
the egg products plants that submit labels for changes to an existing 
label or for new label approvals. Currently, an egg products plant must 
submit a formal application along with a sketch of a product label to 
FSIS personnel for approval, regardless of the change (including a 
color or size change to a label). The approval process for certain 
labels will be streamlined, allowing egg products plants to use certain 
labels without submitting an application to FSIS because the labels 
will be generically approvable.\65\ Labels that will not qualify for 
generic approval include temporary approvals, labels for export only 
product that bear labeling deviations, or labels bearing special 
statements and claims. All other label types can be generically 
approved. Presently, many egg products plants use special claims on 
their labels (e.g., organic or free range) and so those labels will not 
qualify for generic approval. However, the Agency estimates that 
approximately 80 percent of labels have prior approval for these 
claims.\66\ If these prior approved producers make other changes to the 
labels not involving their pre-approved claims, they can also qualify 
for generic labeling.
---------------------------------------------------------------------------

    \65\ As required by 9 CFR 412, the Labeling and Program Delivery 
Staff (LPDS) evaluates certain sketch applications and all temporary 
applications for meat and poultry products. All other meat and 
poultry product label applications may be generically approved 
without evaluation by LPDS.
    \66\ This was an approximation made by a label reviewer in the 
FSIS labeling group.
---------------------------------------------------------------------------

    The number of egg products labels submitted in 2015 was 
approximately 520, and in 2016, the number rose to 708 labels. FSIS 
estimates that approximately 50 percent of these new labels will 
qualify for generic label approval each year. Generic approval will 
reduce the recordkeeping burden at the plant and Agency by about half 
the current levels. In order to estimate cost savings through the 
generic labeling process, the number of future label submissions was 
estimated based on the annual historic increase in submissions. Using 
the industry cost savings of $26.55 per label from the Prior label 
Approval System: Generic Label Approval final rule \67\ updated for 
inflation using the GDP Deflator to 2019 dollars, the final generic 
label approval process for egg products could save industry 
approximately $17,000 annually, discounted over 10 years at the 7 
percent rate, from not submitting labels. The Agency will save 
approximately $66,000 annually, given that on average the review 
process takes approximately one hour, and the Agency assumed a reviewer 
would have a General Schedule 13 salary, step 3 at $101.38 per hour, 
which includes a benefits and overhead factor of two.\68\
---------------------------------------------------------------------------

    \67\ 78 FR 66826.
    \68\ Hourly rate, Washington DC, Office of Personnel Management 
https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2020/general-schedule/.

                                     Table 17--Savings From Generic Labeling
                                                   [$1000s] *
----------------------------------------------------------------------------------------------------------------
                                                                          Annualized savings
                    Total savings                    -----------------------------------------------------------
                                                            3% over 10 years              7% over 10 years
----------------------------------------------------------------------------------------------------------------
Industry............................................                          17.1                          17.1
Agency..............................................                          65.2                            65
                                                     -----------------------------------------------------------
    Total...........................................                          82.3                          82.1
----------------------------------------------------------------------------------------------------------------
* Numbers in table may not sum to totals due to rounding.

Better Agency Resource Coverage
    Because all egg products plant inspectors will now be trained in 
HACCP and can staff FSIS-regulated establishments other than egg 
products plants, the Agency will experience an improvement in 
inspection coverage. In the egg products plants themselves, the Agency 
can also utilize HACCP trained inspectors as relief inspectors. 
Currently, egg products inspectors can only work in egg products 
plants.
Change in Inspector Coverage
    Under the final rule, FSIS inspectors will no longer provide 
inspection during all processing operations at each egg products plant, 
but instead may be provided once per shift. Therefore, under the rule, 
inspectors may inspect several plants within a reasonable commuting 
distance (i.e., patrol assignments similar to meat and poultry 
processing inspection). The Agency expects there to be salary savings 
associated with patrol assignments through a 3-year change in staffing. 
The Agency expects to reduce the number of egg products inspectors by 
10 inspectors in year 1, 10 inspectors in year 2, and 10 inspectors in 
year 3, for a total reduction of 30 egg products inspectors through 
attrition and movement of inspectors to other positions in the Agency 
over a 3 year period. The Agency estimates that the average salary for 
an egg products inspector is approximately $82,000 \69\ per year. 
Agency cost savings are reduced by an increase in travel expenses 
associated with patrol assignments, including mileage and additional 
General Services Administration (GSA) vehicles used for patrol. The 
Agency will also experience a loss of overhead industry paid to the 
Agency for overtime and holiday hours worked.
---------------------------------------------------------------------------

    \69\ This salary was determined using the total savings figure 
provided by FSIS's Office of the Chief Financial Officer.

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

[[Page 68668]]

    In addition to Agency savings, there will be cost savings to 
industry because there will be a reduction in egg products inspectors 
working overtime and holiday hours with the move to patrol assignments. 
Egg products plants will reduce the need for inspectors during hours of 
processing activities, including during overtime and holiday hours. 
FSIS estimates that egg products plants will have reduced costs for 
reimbursing the Agency for approximately 65,000 overtime hours and 
approximately 2,800 holiday hours per year \70\ for the industry as a 
whole. The reimbursable rates to the Agency for overtime and holidays 
are $74.76 to $89.56 per hour, respectively.\71\ The industry savings 
will go into effect within the first year and continue annually. Please 
see table 18 for a summary of total savings from the final changes in 
inspection coverage.
---------------------------------------------------------------------------

    \70\ The industry hours saved was derived from FSIS's Office of 
the Chief Financial Officer.
    \71\ Although 2020 rates are currently available, FSIS used the 
2019 rates to estimate cost savings to be consistent with the other 
costs in the analysis and to not over estimate total cost savings. 
The 2019 dollar rates can be found here: https://www.federalregister.gov/documents/2018/12/20/2018-27521/2019-rate-changes-for-the-basetime-overtime-holiday-and-laboratory-services-rates.

                       Table 18--Total Net Savings From Changes in Egg Products Inspection
                                                   [$1,000s] *
----------------------------------------------------------------------------------------------------------------
                                                                         Annualized estimates
                       Agency                        -----------------------------------------------------------
                                                            3% over 10 years              7% over 10 years
----------------------------------------------------------------------------------------------------------------
Costs
    Changes in inspection coverage..................                         1,557                         1,557
 
Savings
    Reduction in salaries due to changes in                                (2,172)                       (2,129)
     inspection coverage............................
                                                     -----------------------------------------------------------
    Agency Net Budget Impact........................                         (615)                         (572)
 
Industry Savings
    Elimination of inspection payments for overtime                        (5,110)                       (5,110)
     and holidays...................................
                                                     -----------------------------------------------------------
    Grand Total Net Savings.........................                       (5,725)                       (5,682)
----------------------------------------------------------------------------------------------------------------
* Numbers in table may not sum to total due to rounding.

    In summary, the benefits from this final rule include improvements 
in product quality, lower transaction costs, plant innovation, and 
generally lower operational costs. Additionally, the egg products 
plants will not have to comply with the current ``command and control'' 
regulations. By eliminating regulations, administrative burdens will be 
lessened, including those associated with submitting documentation to 
FSIS for changes to the plant and plant processes, waivers, and most 
egg products labels, resulting in cost savings. Industry will also 
benefit from the reduction in overtime and holiday pay paid for the 
inspection of egg products plants. Table 19 summarizes the quantified 
costs and cost savings to industry and the Agency. The rule provides a 
net cost savings of between $1.1 million and $1.2 million annualized 
over 10 years at the 7 percent and 3 percent rates.

                                     Table 19--Total Costs and Net Benefits
                                                   [$1,000s] *
----------------------------------------------------------------------------------------------------------------
                                                             Annualized costs and net benefits (low-high)
                        Costs                        -----------------------------------------------------------
                                                            3% over 10 years              7% over 10 years
----------------------------------------------------------------------------------------------------------------
Industry
    HACCP...........................................     4,266.4 (2,151.1-6,372.4)     4,283.4 (2,160.3-6,395.5)
    Sanitation SOPs.................................           453.5 (261.0-674.1)           465.3 (268.1-690.3)
 
Agency
    IPP Training....................................                          40.6                          47.5
    Replacement IPP.................................                          26.0                          30.4
                                                     -----------------------------------------------------------
        Total Costs.................................     4,786.5 (2,478.7-7,113.1)     4,826.6 (2,506.3-7,163.7)
 
Industry Savings
    Reduced Plant Approval Processes................                         -65.9                         -65.9
    Generic Labeling................................                         -17.1                         -17.1
    Changes in inspection coverage..................                        -5,110                        -5,110
 
Agency
    Reduced Plant Approval Processes................                         -63.0                         -63.0
    Generic Labeling................................                         -65.2                         -65.0
    Changes in inspection coverage..................                          -615                          -572
                                                     -----------------------------------------------------------
        Total Savings...............................                        -5,936                        -5,893
                                                     -----------------------------------------------------------
            Grand Total Net Benefits................          1,149.6 (-1,177.0 to          1,066.5 (-1,270.6 to
                                                                          3,457.4)                      3,386.8)
----------------------------------------------------------------------------------------------------------------
* Numbers in table may not sum to totals due to rounding.


[[Page 68669]]

Alternative Regulatory Approaches

    The Agency considered two alternatives designed to achieve the 
regulatory objective outlined in the Need for the Rule section. 
However, this final rule was chosen as the least burdensome, 
technically acceptable regulatory approach.
    Voluntary HACCP regulatory program: A voluntary HACCP system will 
be very close to the current system. In the current system, 93 percent 
of egg products plants already have implemented HACCP systems 
integrated into their processing. Because many plants have already 
changed to a HACCP system, the Agency does not foresee any non-HACCP 
operations voluntarily implementing HACCP that have not already done 
so. These plants will stay at status quo. Therefore, this regulatory 
option will not lead to a significant change in current egg products 
plants processing practices. However, there will be additional costs, 
such as inspector HACCP training and the costs of inspecting a dual 
system. Also, under the current regulations, continuous inspection 
prevents inspectors from working patrol assignments. These patrol 
assignments will save industry overtime costs and Agency resources. 
These savings will not be fully realized in a dual system. For the 
plants not operating under HACCP, there are possible consumer benefit 
losses as some plants may fail to innovate and might continue to comply 
with current regulation, passing production costs on to consumers. 
Therefore, FSIS rejected this alternative.
    HACCP for large volume egg products plants: In this alternative, 
only plants with a large production volume will be required to 
implement HACCP. This alternative will save Agency HACCP training costs 
for inspection personnel, who inspect small production plants. Small 
volume plants will be allowed to stay in a non-HACCP system, lowering 
industry costs. This alternative will need to have certain volume 
definitions to distinguish the type of plant considered in the 
alternative. A difficulty associated with the size definition process 
is that an egg products plant's volume may change depending on the 
season or from changes in its source eggs. These changes could affect 
the classification system, which is based on volume, and could create 
difficulties in identifying the plants most likely to be designated as 
large volume. Another drawback to this alternative is the possible 
costs to the small producer in the long run. Although the low- 
production egg products plants may save initially on costs by not 
implementing HACCP, this alternative may hurt the plants' long-run 
efficiencies and competitiveness because they will not be gaining the 
flexibility to innovate that they will by producing under the HACCP 
system.
---------------------------------------------------------------------------

    \72\ This cost savings is annualized at the 7 percent discount 
rate over 10 years.

                                  Table 20--Regulatory Alternatives Considered
----------------------------------------------------------------------------------------------------------------
               Alternative                           Costs                              Benefits
----------------------------------------------------------------------------------------------------------------
(1) Existing Voluntary Recordkeeping....  Additional costs for the     No additional benefits.
                                           Agency.
(2) HACCP only for large volume egg       In the long run, small       Small volume producers will save on costs
 products plants.                          plants will incur more       from not having to change their
                                           costs from the lack of       production process and develop the
                                           efficiency gains             requisite Sanitation SOP and HACCP
                                           associated with HACCP.       plans. Large volume producers will
                                                                        acquire benefits from implementing
                                                                        HACCP.
(3) The Final Rule......................  ($1.1 million \72\) annual   Achievement of regulatory objective of
                                           cost savings to industry     regulations consistent with other FSIS
                                           and to the Agency.           regulations, clear responsibility of
                                                                        Agency vs. industry, and additional
                                                                        flexibility for industry.
----------------------------------------------------------------------------------------------------------------

Regulatory Flexibility Act (RFA)--Assessment

    The FSIS Administrator certifies that, for the purposes of the 
Regulatory Flexibility Act (5 U.S.C. 601-602), this final rule will not 
have a significant economic impact on a substantial number of small 
entities in the United States.
    The Agency received comments regarding the impact on small 
businesses, and FSIS provided responses to these comments earlier in 
the preamble to this final rule. Please see the ``Comment and 
Response'' section. FSIS also updated this final Regulatory Flexibility 
Act (RFA) assessment from the preliminary RFA assessment that was 
published in the proposed rule to provide additional analysis in 
response to comments. However, the results of the analysis are the 
same. While this final rule is estimated to result in cost savings for 
small and very small businesses, these savings are not estimated to 
have a significant economic impact.
    In the initial RFA assessment in the proposed rule, the Agency 
found that at least 12 of the 77 egg products plants were larger 
businesses or companies with multiple egg products plants. FSIS 
estimates that approximately 46 plants are part of these larger 
companies, leaving 31 plants that could be considered small 
businesses.\73\
---------------------------------------------------------------------------

    \73\ The Agency considered businesses that were part of a larger 
corporation or business network to be a large business for the 
purpose of this RFA.
---------------------------------------------------------------------------

    Alternatively, in response to comments, FSIS also looked at plants' 
HACCP sizes to assess the impact on small businesses. A plant's HACCP 
size can be used to categorize its business size. HACCP sizes are 
assigned based on the number of employees and revenue: Small plants 
have 10-499 employees and very small establishments have fewer than 10 
employees or annual revenue of less than $2.5 million. Currently, FSIS 
inspects 81 egg products plants, 57 are HACCP size small and 15 are 
HACCP size very small. Regardless of how plants are categorized, the 
average per plant cost savings using the 3 percent mid-range estimate 
is approximately $5,800 per plant and at the 7 percent mid-range 
estimate is approximately $5,500 per plant.
    Given that the final rule is expected to result in cost savings, 
FSIS expects small plants to benefit from the final rule. However, this 
benefit is not expected to be significant.

[[Page 68670]]

The Research Triangle Institute's ``2014 Egg Products Industry Survey'' 
\74\ identifies small plants as those with annual product volume of 
50,000,000 pounds or less. In the survey, 83 percent of small 
businesses report more than $2.5 million in revenue, with nearly 22 
percent reporting at least $50 million in revenue. As such, cost 
savings of $5,800 is less than 1 percent of revenue and is considered 
to have an insignificant economic impact.
---------------------------------------------------------------------------

    \74\ RTI International. 2014. ``Survey of Egg Packing and Egg 
Products Processing Plants.'' Revised Final Report. RTI Project no. 
0211740.015.001. 3040 Cornwallis Rd., P.O. Box 12194 Research 
Triangle Park, NC 27709-2194.
---------------------------------------------------------------------------

Executive Order 13771

    Consistent with E.O. 13771 (82 FR 9339, February 3, 2017), FSIS has 
estimated that this final rule will yield cost savings. FSIS estimates 
that the per plant industry cost savings using the 3 percent mid-range 
estimate is approximately $5,800 per plant and at the 7 percent mid-
range estimate is approximately $5,500 per plant. Assuming a 7 percent 
discount rate, a perpetual time horizon, and a starting year of 2020, 
the final rule will yield approximately $1.1 million (2019$) in 
annualized cost savings. However, due to the potential for unquantified 
costs, OMB has designated this rule as an E.O. 13771 regulatory action.

Appendix A to Executive Orders 12866 and 13563 and the Regulatory 
Flexibility Act Analysis \75\
---------------------------------------------------------------------------

    \75\ This Appendix describes how the Agency used the 2014 Egg 
Products Industry Survey conducted and published by RTI 
International to gather information on egg products plants relating 
to the cost section of this final rule. Specifically, this Appendix 
outlines how the survey questions were used to estimate the number 
of egg products plants that have Sanitation SOPs, HACCP plans, 
training, number of shifts, and record keeping.
    Section (1) describes egg products plants' use of Sanitation 
SOPs. Section (2) outlines the estimates for egg product plants' 
recordkeeping for Sanitation SOPs. Section (3) describes egg 
products plants' training for Sanitation SOPs. Section (4) describes 
the type of product produced by egg products plants and their use of 
HACCP plans. Section (5) describes the number of egg products plants 
with HACCP plans. Section (6) estimates the average number of shifts 
for egg products plants without HACCP plans.
---------------------------------------------------------------------------

    The 2014 Egg Products Industry Survey, conducted and published by 
RTI International, surveyed approximately 57 egg products plants with 
questions in regard to plants' use of HACCP plans, Sanitation SOPs, the 
number of plant personnel, hours of operation and the number of shifts, 
and current sampling practices. The survey design involved 
collaboration between FSIS personnel and RTI International. The full-
scale data collection took place over a 16-week period from February 
17, 2014, to June 9, 2014. The survey included 18 questions. The survey 
also provided information on production volume, types of product, and 
production processes. The survey was considered to be a census of the 
industry because all 77 egg products plants regulated by FSIS were 
contacted and asked to respond. The response rate to the survey was 72 
percent. Fifty-seven egg products plants completed the survey. Of 
these, 26 (46 percent) completed the survey via mail and 31 (54 
percent) completed the Web survey. FSIS used the survey results to 
supplement the information that FSIS maintains in the Public Health 
Information System. The responses to the survey were masked so that 
individual plants could not be identified, so FSIS applied response 
distributions to the larger population of egg products plants to 
approximate baseline industry characteristics.
    In order to describe the egg products plants, which are under 
FSIS's jurisdiction, brief discussions of the major findings of the 
survey have been placed throughout this Executive Order 12866 and 13563 
discussion and the regulatory flexibility analysis and footnoted 
accordingly. Please find the link to the survey here: https://www.fsis.usda.gov/wps/wcm/connect/df3e0400-aaa7-423f-bb11-ff080fc8ce2b/Survey-Egg-Products-09302014.pdf?MOD=AJPERES.

Section 1 Sanitation SOPs

    FSIS estimated the percentage of plants that train production 
employees for Sanitation SOPs using question 4.5: During the past year, 
what types of food safety training did permanent employees of this 
plant receive? A plant was considered to train production employees if 
it responded affirmatively to choice b. Sanitation SOPs. 91.2 percent 
of respondents answered that employees receive Sanitation SOPs 
training.

Section 2 Recordkeeping for Sanitation SOPs

    FSIS estimated the percentage of plants that currently meet the 
final recordkeeping requirements using survey question 2.2: ``Which of 
the following records that are not required by FSIS does this plant 
maintain?'' A plant was considered to meet both if it answered 
affirmatively to choices 1--``Employee task performance log 
verification'' and 2--``Deviation and corrective action log.''
    FSIS then determined the frequency at which sanitation tasks are 
performed using question 2.6: ``How frequently does this plant conduct 
sanitation inspections of product contact zones?'' If a plant responded 
affirmatively to choice 1--``More than once per shift,'' it was 
considered to be conducting sanitation tasks at a frequency greater 
than daily. If it responded affirmatively to choice 2--``Once per shift 
before shift operations begin,'' and operates more than one shift daily 
(determined with question 5.2), then it was also considered to be 
conducting sanitation tasks at a frequency greater than daily. If it 
responded affirmatively to choice 2 and operates a single shift per 
day, or if it responded affirmatively to choice 3--``Once per day 
before daily operations begin,'' it was considered to be conducting 
sanitation tasks at a daily frequency. If it answered affirmatively to 
any other option, it was considered to conduct sanitation tasks less 
than daily.

----------------------------------------------------------------------------------------------------------------
                 Records in compliance                                  Records not in compliance
----------------------------------------------------------------------------------------------------------------
      Daily             Daily
----------------------------------------------------------------------------------------------------------------
           8.8%              33.3%              22.8%               3.5%              15.8%              15.8%
----------------------------------------------------------------------------------------------------------------

Section 3 Training for Sanitation SOPs

    FSIS used the training estimates from Section 1 and assumed that 
any plant which did not provide training for Sanitation SOPs did not 
have a written plan. Then, FSIS estimated the number of shifts of 
employees needing training for Sanitation SOPs by averaging the 
reported number of shifts from question 5.2--``How many production 
shifts are operated each day at this plant?'' Only those plants that do 
not provide HACCP training were included in the average.

[[Page 68671]]



----------------------------------------------------------------------------------------------------------------
                         No sanitation SOPs     Needed sanitation
        Plants                training                 SOPs              Average shifts         Total shifts
----------------------------------------------------------------------------------------------------------------
               81                   8.8%                      7                    1.7                      8
----------------------------------------------------------------------------------------------------------------

Section 4 Use of HACCP plans

    To determine the percentage of plants which have written HACCP 
plans in place for their respective processes, FSIS used the survey to 
first determine which respondents produced products corresponding to 
the three main processes.
    For breaking, FSIS considered all plants that responded to question 
1.1: ``Which statement below describes how this plant receives egg 
inputs?'' and answered affirmatively to choice 1--``This plant receives 
shell eggs only''--or to choice 2--This plant receives both shell eggs 
and liquid or dried eggs.''
    For dried eggs, FSIS considered all plants that responded to 
question 1.11: ``Does this plant produce this egg product form?'' and 
answered affirmatively to choice e--``Dried''--or to choice f-``Blended 
and dried.''
    For liquid eggs, FSIS considered all plants that which responded to 
question 1.11: ``Does this plant produce this egg product form?'' and 
answered affirmatively to choice a--``Liquid''; to choice b--``Blended 
and liquid''; to choice c--``frozen''; to choice d--``Blended and 
frozen''; or g--``Extended shelf life liquid''.
    Next, for each process, FSIS determined if the respondent had a 
written HACCP plan using question 2.1: ``What production steps are used 
by this plant, and if used, is the step addressed in a written plan?'' 
Specifically, FSIS considered the plan acceptable if the plant 
responded affirmatively to option 3--``Used and Addressed in a Written 
HACCP Plan'' for option j--``Breaking shell eggs''; option m--``Drying 
egg products''; or option n--``Pasteurizing dried egg whites'', and 
option l--``Pasteurizing liquid eggs for breaking, dried, and liquid 
processes, respectively.''

------------------------------------------------------------------------
    Breaking w/HACCP          Dried w/HACCP           Liquid w/HACCP
------------------------------------------------------------------------
             84.6%                    80.0%                    76.5%
------------------------------------------------------------------------

    Finally, FSIS applied these percentages to PHIS egg products plants 
production data (see Table below) to estimate the number of processes 
currently operating without HACCP plans.

----------------------------------------------------------------------------------------------------------------
        Plants                Breaking                Dried                  Liquid            Total processes
----------------------------------------------------------------------------------------------------------------
               81                     59                     18                     55                    132
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                                         Total processes
   Breaking w/o     Dried w/o HACCP   Liquid w/o HACCP    operating w/o
      HACCP                                                   HACCP
------------------------------------------------------------------------
              9                  4                 13                26
------------------------------------------------------------------------

Section 5 Plants With HACCP Plans

    FSIS used the results to question 2.1: ``What production steps are 
used by this plant, and if used, is the step addressed in a written 
plan?'' to determine the percentage of plants with no HACCP plans. 
Specifically, a plant was considered to have no HACCP plans if it did 
not respond with option 3--``Used and Addressed in a Written HACCP Plan 
for any of the following: j. Breaking shell eggs, l. Pasteurizing 
liquid eggs, m. Drying egg products, or n. Pasteurizing dried egg 
whites.''

------------------------------------------------------------------------
                                       Number of plants  (approximate)
       Percent with no HACCP                    with no HACCP
------------------------------------------------------------------------
                        7%                                  6 *
------------------------------------------------------------------------
* The number of plants was rounded up.

Section 6 for Plants Without HACCP Plans

    To estimate the number of shifts at plants without any HACCP 
systems in place, FSIS averaged the responses to question 5.2: ``How 
many production shifts are operated each day at this plant?'' for those 
respondents determined to not have HACCP plans as described in Section 
5. This average (1.7 shifts) was then applied to the total number of 
plants estimated to be without HACCP systems.

IV. Paperwork Reduction Act

    FSIS sought, but did not receive, comments on its proposed 
information collection in the proposed rule (83 FR 6347). In accordance 
with section 3507(d) of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.), the information collection or record keeping 
requirements included in this final rule have been submitted for 
approval to the Office of Management and Budget (OMB). This information 
collection request is at OMB awaiting approval. FSIS will collect no 
information associated with this rule until the information collection 
is approved by OMB.
    Copies of the information collection assessment can be obtained 
from Gina Kouba, Office of Policy and Program Development, Food Safety 
and Inspection Service, USDA, 1400 Independence Avenue SW, Room 6065, 
South Building, Washington, DC 20250-3700; (202) 720-5627.

V. Executive Order 12988, Civil Justice Reform

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under this rule: (1) All State and local laws and 
regulations that are inconsistent with this rule will be preempted; (2) 
no retroactive effect will be given to this rule; and (3) no 
administrative proceedings will be required before parties may file 
suit in court challenging this rule.

VI. E-Government Act Compliance

    FSIS and USDA are committed to achieving the purposes of the E-
Government Act (44 U.S.C. 3601, et seq.) by, among other things, 
promoting

[[Page 68672]]

the use of the internet and other information technologies and 
providing increased opportunities for citizen access to government 
information and services, and for other purposes.

VII. Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' E.O. 13175 requires Federal agencies to consult 
and coordinate with tribes on a government-to-government basis on 
policies that have tribal implications, including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions that have substantial direct effects on one or 
more Indian tribes, on the relationship between the Federal Government 
and Indian tribes or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes.
    FSIS has assessed the impact of this rule on Indian tribes and 
determined that this rule does not, to our knowledge, have tribal 
implications that require tribal consultation under E.O. 13175. If a 
Tribe requests consultation, the Food Safety and Inspection Service 
will work with the Office of Tribal Relations to ensure meaningful 
consultation is provided where changes, additions and modifications 
identified herein are not expressly mandated by Congress.

VIII. USDA Nondiscrimination Statement

    No agency, officer, or employee of the USDA shall, on the grounds 
of race, color, national origin, religion, sex, gender identity, sexual 
orientation, disability, age, marital status, family/parental status, 
income derived from a public assistance program, or political beliefs, 
exclude from participation in, deny the benefits of, or subject to 
discrimination any person in the United States under any program or 
activity conducted by the USDA.

How To File a Complaint of Discrimination

    To file a complaint of discrimination, complete the USDA Program 
Discrimination Complaint Form, which may be accessed online at http://www.ocio.usda.gov/sites/default/files/docs/2012/Complain_combined_6_8_12.pdf, or write a letter signed by you or your 
authorized representative.
    Send your completed complaint form or letter to USDA by mail, fax, 
or email:
    Mail: U.S. Department of Agriculture, Director, Office of 
Adjudication, 1400 Independence Avenue SW, Washington, DC 20250-9410.
    Fax: (202) 690-7442.
    Email: [email protected].
    Persons with disabilities who require alternative means for 
communication (Braille, large print, audiotape, etc.), should contact 
USDA's TARGET Center at (202) 720-2600 (voice and TDD).

IX. Congressional Review Act

    Pursuant to the Congressional Review Act at 5 U.S.C. 801 et seq., 
the Office of Information and Regulatory Affairs has determined that 
this final rule is not a ``major rule,'' as defined by 5 U.S.C. 804(2).

X. Additional Public Notification

    Public awareness of all segments of rulemaking and policy 
development is important. Consequently, FSIS will announce this Federal 
Register publication on-line through the FSIS web page located at: 
http://www.fsis.usda.gov/federal-register.
    FSIS also will make copies of this publication available through 
the FSIS Constituent Update, which is used to provide information 
regarding FSIS policies, procedures, regulations, Federal Register 
notices, FSIS public meetings, and other types of information that 
could affect or would be of interest to our constituents and 
stakeholders. The Constituent Update is available on the FSIS web page. 
Through the web page, FSIS is able to provide information to a much 
broader, more diverse audience. In addition, FSIS offers an email 
subscription service which provides automatic and customized access to 
selected food safety news and information. This service is available 
at: http://www.fsis.usda.gov/subscribe. Options range from recalls to 
export information, regulations, directives, and notices. Customers can 
add or delete subscriptions themselves and have the option to password 
protect their accounts.

List of Subjects

9 CFR Part 416

    Meat inspection, Poultry and poultry products, Sanitation.

9 CFR Part 417

    Meat inspection, Poultry and poultry products, Record and 
recordkeeping requirements, Hazard Analysis and Critical Control Point 
(HACCP) Systems.

9 CFR Part 500

    Administrative practice and procedure, Meat inspection, Poultry and 
poultry products, Rules of practice.

9 CFR Part 590

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

9 CFR Part 591

    Eggs and egg products, Reporting and recordkeeping requirements, 
Administrative practice and procedures.

    For the reasons set forth in the preamble, and under the authority 
of 21 U.S.C. 451-470, 601-695, and 1031-1056, FSIS is amending 9 CFR 
chapter III as follows:

SUBCHAPTER E--REGULATORY REQUIREMENTS UNDER THE FEDERAL MEAT INSPECTION 
ACT, THE POULTRY PRODUCTS INSPECTION ACT, AND THE EGG PRODUCTS 
INSPECTION ACT

0
1. Revise the heading of subchapter E to read as set forth above.

PART 416--SANITATION

0
2. Revise the authority citation for part 416 to read as follows:

    Authority:  21 U.S.C. 451-470, 601-695, 1031-1056; 7 U.S.C. 450, 
1901-1906; 7 CFR 2.18, 2.53.

PART 417--HAZARD ANALYSIS AND CRITICAL CONTROL POINT (HACCP) 
SYSTEMS

0
3. Revise the authority citation for part 417 to read as follows:

    Authority: 21 U.S.C. 451-470, 601-695, 1031-1056; 7 U.S.C. 450, 
1901-1906; 7 CFR 2.18, 2.53.


0
4. In Sec.  417.7, revise paragraph (b) to read as follows:


Sec.  417.7  Training.

* * * * *
    (b) The individual performing the functions listed in paragraph (a) 
of this section shall have successfully completed a course of 
instruction in the application of the seven HACCP principles to meat, 
poultry, or egg products processing, including a segment on the 
development of a HACCP plan for a specific product and on record 
review.

PART 500--RULES OF PRACTICE

0
5. Revise the authority citation for part 500 to read as follows:

    Authority: 21 U.S.C. 451-470, 601-695, 1031-1056; 7 U.S.C. 450, 
1901-1906; (33 U.S.C. 1251 et seq.); 7 CFR 2.18, 2.53.


0
6. Amend Sec.  500.2 by revising paragraph (c) to read as follows:

[[Page 68673]]

Sec.  500.2  Regulatory control action.

* * * * *
    (c) An establishment may appeal a regulatory control action, as 
provided in Sec. Sec.  306.5, 381.35, and 590.310 of this chapter.

0
7. Amend Sec.  500.3 by revising paragraphs (a)(1) and (7) to read as 
follows:


Sec.  500.3  Withholding action or suspension without prior 
notification.

    (a) * * *
    (1) The establishment produced and shipped adulterated or 
misbranded product as defined in 21 U.S.C. 453, 21 U.S.C. 602, or 21 
U.S.C. 1033;
* * * * *
    (7) The establishment did not destroy a condemned meat or poultry 
carcass, or part or product thereof, or egg product, that has been 
found to be adulterated and that has not been reprocessed, in 
accordance with part 314 or part 381, subpart L, or part 590 of this 
chapter within three days of notification.
* * * * *

0
8. Amend Sec.  500.5 by revising paragraphs (a)(5) and (c) to read as 
follows:


Sec.  500.5  Notification, appeals, and actions held in abeyance.

    (a) * * *
    (5) Advise the establishment that it may appeal the action as 
provided in Sec. Sec.  306.5, 381.35, and 590.310 of this chapter.
* * * * *
    (c) An establishment may appeal the withholding action or 
suspension, as provided in Sec. Sec.  306.5, 381.35, and 590.310 of 
this chapter.
* * * * *

0
9. In Sec.  500.6:
0
a. Redesignate paragraphs (a) through (i) as paragraphs (a)(1) through 
(9).
0
b. Designate the introductory text as paragraph (a).
0
c. Revise newly redesignated paragraph (a)(9).
0
d. Add reserved paragraph (b).
    The revision and addition read as follows:


Sec.  500.6  Withdrawal of inspection.

    (a) * * *
    (9) A recipient of inspection or anyone responsibly connected to 
the recipient is unfit to engage in any business requiring inspection 
as specified in section 401 of the FMIA, section 18(a) of the PPIA, or 
section 18 of the EPIA.
    (b) [Reserved]

0
10. In Sec.  500.7, revise paragraphs (a)(3) and (5) to read as 
follows:


Sec.  500.7  Refusal to grant inspection.

    (a) * * *
    (3) Has not demonstrated that adequate sanitary conditions exist in 
the establishment as required by part 308, subpart H of part 381, part 
416, or part 590 of this chapter;
* * * * *
    (5) Is unfit to engage in any business requiring inspection as 
specified in section 401 of the FMIA, section 18(a) of the PPIA, or 
section 18 of the EPIA.
* * * * *

0
11. In Sec.  500.8, revise paragraphs (a) and (c) to read as follows:


Sec.  500.8  Procedures for rescinding or refusing approval of marks, 
labels, and containers.

    (a) FSIS may rescind or refuse approval of false or misleading 
marks, labels, or sizes or forms of any container for use with any 
meat, poultry, or egg product, under section 7 of the FMIA, under 
section 8 of the PPIA, or under sections 7 or 14 of the EPIA.
* * * * *
    (c) If FSIS rescinds or refuses approval of false or misleading 
marks, labels, or sizes or forms of any container for use with any 
meat, poultry, or egg product, an opportunity for a hearing will be 
provided in accordance with the Uniform Rules of Practice, 7 CFR 
subtitle A, part 1, subpart H.

PART 590--INSPECTION OF EGGS AND EGG PRODUCTS (EGG PRODUCTS 
INSPECTION ACT)

0
12. The authority citation for part 590 is revised to read as follows:

    Authority:  21 U.S.C. 1031-1056; 7 CFR 2.18, 2.53.

Subpart A--GENERAL


Sec. Sec.  590.1 through 590.860   [Designated as Subpart A]

0
13. Designate Sec. Sec.  590.1 through 590.860 as subpart A and add a 
heading for subpart A to read as set forth above.

0
14. Amend Sec.  590.5 by:
0
a. Revising the definition of Administrator.
0
b. Removing the definition of Chief of the Grading Branch and Dirty egg 
or Dirties.
0
c. Revising paragraph (c) of the definition of Egg;
0
d. Revising the definition of Egg product.
0
e. Adding, in alphabetical order, the definition of Inspection program 
personnel.
0
f. Removing the definition of Inspector/Grader and National Supervisor.
0
g. Adding, in alphabetical order, the definition of Official plant.
0
h. Removing the definition of Official Standard.
0
i. Adding, in alphabetical order, the definition of Official standards.
0
j. Revising the definition of Pasteurize.
0
k. Removing the definition of Plant.
0
l. Revising the definition of Processing.
0
m. Removing the definitions of Regional Director, Sanitize, and 
Service.
0
n. Revising the definition of Shell egg packer.
0
o. Adding, in alphabetical order, the definition of Shipped for retail 
sale.
    The revisions and additions read as follows:


Sec.  590.5  Terms defined.

* * * * *
    Administrator means the Administrator of the Food Safety and 
Inspection Service or any officer or employee of the Department of 
Agriculture to whom authority has been delegated or may be delegated to 
act in his or her stead.
* * * * *
    Egg * * *
    (c) Dirty egg or Dirt means an egg that has a shell that is 
unbroken and has adhering dirt or foreign material.
* * * * *
    Egg product means any dried, frozen, or liquid eggs, with or 
without added ingredients, excepting products which contain eggs only 
in a relatively small proportion or historically have not been, in the 
judgment of the Secretary, considered by consumers as products of the 
egg food industry, and which may be exempted by the Secretary under 
such conditions as the Secretary may prescribe to assure that the egg 
ingredients are not adulterated and such products are not represented 
as egg products. For the purposes of this part, the following products, 
among others, are exempted as not being egg products: Cooked egg 
products, imitation egg products, dietary foods, dried no-bake custard 
mixes, egg nog mixes, acidic dressings, noodles, milk and egg dip, cake 
mixes, French toast, and sandwiches containing eggs or egg products, 
provided such products are prepared from inspected egg products or eggs 
containing no more restricted eggs than are allowed in the official 
standards for U.S. Consumer Grade B shell eggs. Balut and other similar 
ethnic delicacies are also exempted from inspection under this part.
* * * * *
    Inspection program personnel means any inspector or other 
individual

[[Page 68674]]

employed by the Department or any cooperating agency who is authorized 
by the Secretary to do any work or perform any duty in connection with 
the Program.
* * * * *
    Official plant means any plant in which the plant facilities, 
methods of operation, and sanitary procedures have been found suitable 
and adequate by the Administrator for the inspection of egg products 
pursuant to the regulations in this part and in which inspection 
service is carried on.
    Official standards means the standards of quality, grades, and 
weight classes for eggs.
* * * * *
    Pasteurize means the subjecting of each particle of egg products to 
heat or other treatments to destroy harmful viable microorganisms.
* * * * *
    Processing means manufacturing of egg products, including breaking 
eggs or filtering, mixing, blending, pasteurizing, stabilizing, 
cooling, freezing or drying, or packaging or repackaging egg products 
at official plants.
* * * * *
    Shell egg packer means any person engaged in the sorting of shell 
eggs from sources other than or in addition to the person's own 
production into their various qualities, either mechanically or by 
other means.
    Shipped for retail sale means eggs that are forwarded from the 
processing facility for distribution to the ultimate consumer.
* * * * *

0
15. Amend Sec.  590.10 by revising the last sentence to read as 
follows:


Sec.  590.10  Authority.

    * * * The Food Safety and Inspection Service and its officers and 
employees will not be liable in damages through acts of commission or 
omission in the administration of this part.


Sec.  Sec.  590.17 and 590.22  [Removed]

0
16. Remove Sec. Sec.  590.17 and 590.22.

0
17. Revise Sec.  590.28 to read as follows:


Sec.  590.28  Other inspections.

    Inspection program personnel will make periodic inspections 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 or egg products.

0
18. Revise Sec.  590.40 to read as follows:


Sec.  590.40  Egg products not intended for human food.

    Periodic inspections will be made at any plant processing egg 
products which are not intended for use as human food of its operations 
and records to ensure compliance with the Act and the regulations in 
this part. Egg products not intended for use as human food shall be 
denatured or decharacterized prior to being offered for sale or 
transportation and identified as prescribed by the regulations in this 
part to prevent their use as human food.

0
19. Revise Sec.  590.50 to read as follows:


Sec.  590.50  Egg temperature and labeling requirements.

    (a) All shell eggs packed into containers destined for the ultimate 
consumer must be stored and transported under refrigeration at an 
ambient temperature of no greater than 45 [deg]F (7.2 [deg]C) and must 
bear safe handling instructions in accordance with 21 CFR 101.17(h).
    (b) Any producer-packer with an annual egg production from a flock 
of 3,000 or fewer layers is exempt from the temperature and labeling 
requirements of this section. Such producer-packer is still required to 
comply with the labeling requirements in 21 CFR 101.17(h).

0
20. Revise Sec.  590.100 to read as follows:


Sec.  590.100  Specific exemptions.

    (a) [Reserved]
    (b) The following are exempt, to the extent prescribed, from the 
inspection of egg products processing operations in section 5(a) of the 
Act (21 U.S.C. 1034(a)), provided the conditions for exemption and the 
provisions of these regulations are met:
    (1) The processing and sale of egg products by any poultry producer 
from eggs of his own flock's production when sold directly to a 
household consumer exclusively for use by the consumer and members of 
the household and its nonpaying guests and employees.
    (2) The processing in non-official plants, including but not 
limited to bakeries, restaurants, and other food processors, of certain 
categories of food products which contain eggs or egg products as an 
ingredient, as well as the sale and possession of such products. Such 
products must be manufactured from inspected egg products processed in 
accordance with the regulations in this part and 9 CFR part 591 or from 
eggs containing no more restricted eggs than are allowed in the 
official standards for U.S. Consumer Grade B shell eggs.


Sec.  590.105  [Removed]

0
21. Remove Sec.  590.105.


Sec. Sec.  590.112, 590.114 and 590.116   [Removed]

0
22. Remove Sec. Sec.  590.112, 590.114 and 590.116.

0
23. Revise Sec.  590.118 to read as follows:


Sec.  590.118  Identification.

    Inspection program personnel will be furnished with a numbered 
official badge that will be carried in a proper manner at all times 
while on duty. This badge will be sufficient identification to entitle 
inspection program personnel entry at all regular entrances and to all 
parts of the official plant and premises to which inspection program 
personnel are assigned.


Sec.  590.119  [Removed]

0
24. Remove Sec.  590.119.

0
25. Revise Sec.  590.120 to read as follows:


Sec.  590.120  Financial interest of inspectors.

    (a) Inspection program personnel will not inspect any product in 
which he or she has a financial interest; or that is produced by a 
plant at which the employee, the employee's spouse, minor child, 
partner, organization in which the employee is serving as officer, 
director, trustee, partner, or employee; or that is produced by any 
other person with whom inspection program personnel are negotiating or 
have any arrangements concerning prospective employment.
    (b) All inspection program personnel are subject to statutory 
restrictions with respect to political activities; e.g., 5 U.S.C. 7324 
and 1502.
    (c) Violation of the provisions of paragraph (a) of this section or 
the provisions of applicable statutes referenced in paragraph (b) of 
this section will constitute grounds for dismissal.
    (d) Inspection program personnel are subject to all applicable 
provisions of law and regulations and instructions of the Department 
and the Food Safety and Inspection Service concerning employee 
responsibilities and conduct. The setting forth of certain prohibitions 
in this part in no way limits the applicability of such general or 
other regulations or instructions.

0
26. Amend Sec.  590.134y revising paragraph (b) to read as follows:


Sec.  590.134  Accessibility of product and cooler rooms.

* * * * *
    (b) The perimeter of each cooler room used to store eggs must be 
made accessible in order for the Secretary's

[[Page 68675]]

representatives to determine the ambient temperature under which shell 
eggs packed into containers destined for the ultimate consumer are 
stored.

0
27. Revise Sec.  590.136 to read as follows:


Sec.  590.136  Accommodations and equipment to be furnished by 
facilities for use of inspection program personnel in performing 
service.

    (a) Inspection program personnel office. Office space, including, 
but not limited to, furnishings, light, heat, and janitor service, will 
be provided without cost in the official plant for the use of 
inspection program personnel for official purposes. The room or space 
set apart for this purpose must meet the approval of the Food Safety 
and Inspection Service and be conveniently located, properly 
ventilated, and provided with lockers or file cabinets suitable for the 
protection and storage of supplies and with accommodations suitable for 
inspection program personnel to change clothing. At the discretion of 
the Administrator, small official plants requiring the services of less 
than one full-time inspector need not furnish accommodations for 
inspection program personnel as prescribed in this section where 
adequate accommodations exist in a nearby convenient location.
    (b) Accommodations and equipment. Such accommodations and equipment 
must include, but not be limited to, a room or area suitable for 
sampling product and a stationary or adequately secured storage box or 
cage (capable of being locked only by inspection program personnel) for 
holding official samples.

0
28. Revise Sec.  590.140 to read as follows:


Sec.  590.140  Application for grant of inspection.

    The proprietor or operator of each official plant and official 
import inspection establishment must make application to the 
Administrator for inspection service unless exempted by Sec.  590.100. 
The application must be made in writing on forms furnished by the 
inspection service. In cases of change of name or ownership or change 
of location, a new application must be made.

0
29. Revise Sec.  590.142 to read as follows:


Sec.  590.142  Filing of application.

    An application for inspection service will be regarded as filed 
only when it has been:
    (a) Filled in completely;
    (b) Signed by the applicant; and
    (c) Received in the appropriate District Office.

0
30. Revise Sec.  590.146 to read as follows:


Sec.  590.146  Survey and grant of inspection.

    (a) Before inspection is granted, FSIS will survey the official 
plant to determine if the construction and facilities of the plant are 
in accordance with the regulations in this part. FSIS will grant 
inspection, subject to Sec.  500.7 of this chapter, when these 
requirements are met and the requirements contained in Sec.  590.149 
are met.
    (b) FSIS will give notice in writing to each applicant granted 
inspection and will specify in the notice the official plant, including 
the limits of the plant's premises, to which the grant pertains.


Sec.  590.148  [Removed]

0
31. Remove Sec.  590.148.

0
32. Add Sec.  590.149 to read as follows:


Sec.  590.149  Conditions for receiving inspection.

    (a) Before receiving Federal inspection, a plant must have 
developed written sanitation Standard Operating Procedures, in 
accordance with part 416 and Sec.  591.1(a) of this chapter.
    (b) Before receiving Federal inspection, a plant must conduct a 
hazard analysis, and develop and implement a HACCP plan, in accordance 
with part 417 and Sec.  591.1(a) of this chapter. A conditional grant 
of inspection may be provided for a period not to exceed 90 days, 
during which period the facility must validate its HACCP plan.
    (c) Before producing new product for distribution in commerce, a 
plant must conduct a hazard analysis and develop a HACCP plan 
applicable to that product, in accordance with Sec.  417.2 of this 
chapter. During a period not to exceed 90 days after the date the new 
product is produced for distribution in commerce, the plant must 
validate its HACCP plan, in accordance with Sec.  417.4 of this 
chapter.

0
33. Revise Sec.  590.160 to read as follows:


Sec.  590.160  Clean Water Act; refusal, suspension, or withdrawal of 
service.

    (a) Any applicant for inspection at a plant where the operations 
thereof may result in any discharge into the navigable waters in the 
United States is required by subsection 401(a)(1) (33 U.S.C. 1341) of 
the Clean Water Act as amended (86 Stat. 816, 91 Stat. 1566, 33 U.S.C. 
1251 et seq.), to provide the Administrator with a certification, as 
prescribed in said subsection, that any such discharge will comply with 
the applicable provisions of sections 301, 302, 303, 306, and 307 of 
the Act (33 U.S.C. 1311, 1312, 1313, 1316, and 1317). No grant of 
inspection can be issued unless such certification has been obtained, 
or is waived, because failure of refusal of the State, interstate 
agency, or the Administrator of the Environmental Protection Agency to 
act on a request for certification within a reasonable period (which 
should not exceed 1 year after receipt of such a request). Further, 
upon receipt of an application for inspection and a certification as 
required by section 401(a)(1) of the Clean Water Act, the Administrator 
(as defined in Sec.  590.5) is required by subparagraph (2) of said 
subsection to notify the Administrator of the Environmental Protection 
Agency for proceedings in accordance with that subsection. No grant of 
inspection can be made until the requirements of section 401(a)(1) and 
(2) have been met.
    (b) Inspection may be suspended or revoked and plant approval 
terminated as provided in section 401(a)(4) and (5) of the Clean Water 
Act, as amended (33 U.S.C. 1341(a)(4) and (5)).

0
34. Revise Sec.  590.200 to read as follows:


Sec.  590.200  Records and related requirements.

    (a) Persons engaged in the transporting, shipping, or receiving of 
any eggs or egg products in commerce, or holding such articles so 
received, and all egg handlers, except producer-packers with an annual 
egg production from a flock of 3,000 layers or fewer, must maintain 
records documenting, for a period of 2 years, the following, to the 
extent applicable:
    (1) The date of lay, date and time of refrigeration, date of 
receipt, quantity and quality of eggs purchased or received, and from 
whom (including a complete address, unless a master list is 
maintained). Process records documenting that the temperature and 
labeling requirements in Sec.  590.50(a) have been met must also be 
kept;
    (2) The date of packaging, ambient air temperature surrounding 
product stored after processing, quantity and quality of eggs delivered 
or sold, and to whom (including a complete address, unless a master 
list is maintained);
    (3) If a consecutive lot numbering system is not employed to 
identify individual eggs, containers of eggs, or egg products, record 
the alternative code system used, in accordance with Sec.  
590.411(c)(3);
    (4) The date of disposal and quantity of restricted eggs, including 
inedible egg product or incubator reject product, sold

[[Page 68676]]

or given away for animal food or other uses or otherwise disposed of, 
and to whom (including a complete address, unless a master list is 
maintained);
    (5) The individual or composite (running tally) record of 
restricted egg sales to household consumers. Records should show number 
of dozens sold on a daily basis. The name and address of the consumer 
is not required;
    (6) The date of production and quantity of egg products delivered 
or sold, and to whom (including a complete address, unless a master 
list is maintained);
    (7) The date of receipt and quantity of egg products purchased or 
received, and from whom (including a complete address, unless a master 
list is maintained);
    (8) The production records by categories of eggs such as graded 
eggs, nest-run eggs, dirties, checks, etc.; bills of sale, inventories, 
receipts, shipments, shippers, receivers, dates of shipment and 
receipt, carrier names, etc.
    (b) All records required to be maintained by this section must be 
made available to an authorized representative of the Secretary for 
official review and copying.
    (c) Records of all labeling, along with the product formulation and 
processing procedures as prescribed in Sec. Sec.  590.410 through 
590.412, must be kept by every person processing, except processors 
exempted under Sec.  590.100.

0
35. Revise Sec.  590.300 to read as follows:


Sec.  590.300  Appeal inspections.

    Any person receiving inspection service may, if dissatisfied with 
any decision of an inspector related to any inspection, file an appeal 
from such decision.

0
36. Revise Sec.  590.310 to read as follows:


Sec.  590.310  Appeal inspections; how made.

    Any appeal from the inspection decision by inspection program 
personnel must be made to the immediate supervisor having jurisdiction 
over the subject matter of the appeal.

0
37. Revise Sec.  590.320 to read as follows:


Sec.  590.320  How to file an appeal inspection or decision review.

    The request for an appeal inspection or review of inspection 
program personnel's decision may be made orally or in writing. If made 
orally, written confirmation may be required. The applicant must 
clearly identify the product involved, the decision being appealed, and 
the reasons for requesting the appeal.

0
38. Revise Sec.  590.340 to read as follows:


Sec.  590.340  Who must perform the appeal inspection or decision 
review.

    An appeal inspection or review of inspection program personnel's 
decisions, as requested in Sec.  590.310, must be performed by 
inspection program personnel of FSIS other than the one who made the 
initial decision.

0
39. Revise Sec.  590.350 to read as follows:


Sec.  590.350  Appeal samples.

    A condition appeal sample will consist of product taken from the 
original sample containers plus an equal number of containers selected 
at random. A condition appeal cannot be made unless all originally 
sampled containers are available.


Sec. Sec.  590.360 and 590.370   [Removed]

0
40. Remove Sec. Sec.  590.360 and 590.370.

0
41. Revise Sec.  590.410 to read as follows:


Sec.  590.410  Egg products required to be labeled.

    (a)(1) Packaged egg products that require special handling to 
maintain their wholesome condition must have the statement ``Keep 
Refrigerated,'' ``Keep Frozen,'' ``Perishable Keep Under 
Refrigeration,'' or such similar statement prominently displayed on the 
principal display panel.
    (2) Egg products that are distributed frozen and thawed prior to or 
during display for sale at retail must bear the statement ``Keep 
Frozen'' on the shipping container. Consumer-sized containers for such 
egg products must bear the statement ``Previously Handled Frozen for 
Your Protection, Refreeze or Keep Refrigerated.''
    (3) The labels of packages of egg products produced from shell eggs 
that have been treated with ionizing radiation must reflect that 
treatment in the ingredient statement on the finished product labeling.
    (b) Containers, portable tanks, and bulk shipments of edible egg 
products produced in official plants must be labeled in accordance with 
Sec. Sec.  590.411 through 590.415 and must bear the official 
identification shown in Figure 1 of Sec.  590.413.
    (c) Bulk shipments of unpasteurized egg products and microbial 
pathogen-positive egg products produced in official plants must bear a 
label containing the words ``date of loading,'' followed by a suitable 
space in which the date the container, tanker truck, or portable tank 
is loaded must be inserted. The label must be conspicuously located and 
printed and affixed on material that cannot be detached or effaced due 
to exposure to weather. Before the truck or tank is removed from the 
place where it is unloaded, the carrier must remove or obliterate the 
label. Such shipments must also bear the official identification shown 
in Figure 2 of Sec.  590.415.

0
42. Revise Sec.  590.411 to read as follows:


Sec.  590.411  Label approval.

    (a) All official plants, including official plants certified under 
a foreign inspection system in accordance with Sec.  590.910, must 
comply with the requirements contained in Sec.  412.1 of this chapter, 
except as otherwise provided in this part.
    (b) For the purposes of Sec.  412.1 of this chapter, an official 
establishment or establishment certified under a foreign inspection 
system includes an official plant.
    (c) Labels, containers, or packaging materials of egg products must 
show the following information, as applicable, on the principal display 
panel (except as otherwise permitted in this part), in accordance with 
the requirements of this part, or if applicable, 21 CFR 101.17(h):
    (1) A statement showing by the common or usual names, if any, of 
the kinds of ingredients comprising the product. Formulas are to be 
expressed in terms of a liquid product except for product that is dry-
blended. Also, for product to be dried, the label may show the 
ingredients in order of descending proportions by weight in the dried 
form. However, the formula submitted must include the percentage of 
ingredients in both liquid and dried form. If the product is comprised 
of two or more ingredients, such ingredients must 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 
product (other than dry blended) may be listed in either liquid or 
dried form. When water (excluding that used to reconstitute dehydrated 
ingredients back to their normal composition) is added to a liquid or 
frozen egg product or to an ingredient of such products (in excess of 
the normal water content of that ingredient), the total amount of water 
added, including the water content of any cellulose or vegetable gums 
used, must be expressed as a percentage of the total product weight in 
the ingredient statement on the label;

[[Page 68677]]

    (2) The name, address and zip code of the distributor; qualified by 
such terms as ``distributed by,'' or ``distributors'';
    (3) The lot number or an alternative code indicating the date of 
production, in accordance with Sec.  590.200(a);
    (4) The net contents;
    (5) An official inspection symbol and the number of the official 
plant in which the product was processed under inspection as set forth 
in Sec.  590.413;
    (6) Egg products processed from edible eggs of turkeys, ducks, 
geese, or guineas must be clearly and distinctly labeled with the 
common or usual name of the product and indicating the type of eggs or 
egg products used in the product, e.g., ``Frozen whole turkey eggs,'' 
``Frozen whole chicken and turkey eggs.'' Egg products labeled without 
qualifying words as to the type of egg used in the product must be 
produced only from the edible egg of the domesticated chicken.
    (7) Egg products which are produced in an official plant from 
edible shell eggs of other than current production or from other egg 
products of shell eggs of other than current product must be clearly 
and distinctly labeled in close proximity to the common or usual name 
of the product, e.g., Manufactured from eggs of other than current 
production.''
    (d) Liquid or frozen egg products identified as whole eggs and 
processed in other than natural proportions as broken from the shell 
must have a total egg solids content of 24.20 percent or greater.
    (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. Since 
these regulations have different requirements for consumer-packaged 
products than for bulk packaged egg products not for sale or 
distribution to household consumers, label submission must be 
accompanied with information indicating whether the label covers 
consumer packaged or bulk packaged products. Nutrition labeling is 
required when nutrients, such as proteins, vitamins, and minerals are 
added to the product, or when a nutritional claim or information is 
presented on the labeling, except for the following, which are exempt 
from nutrition labeling requirements:
    (1) Egg products shipped in bulk form for use solely in the 
manufacture of other food and not for distribution to household 
consumers in such bulk form or containers.
    (2) Products containing an added vitamin, mineral, or protein, or 
for which a nutritional claim is made on the label, or in advertising, 
which is supplied for institutional food use only, provided that the 
manufacturer or distributor provides the required nutrition information 
directly to those institutions.
    (3) Any nutrients included in the product solely for technological 
purposes may be declared solely in the ingredients statement, without 
complying with nutrition labeling, if the nutrient(s) is otherwise not 
referred to in labeling or in advertising. All labels showing nutrition 
information or claims are subject to review by the Food and Drug 
Administration prior to approval by the Department.
    (f)(1) No label, container, or packaging material may contain any 
statement that is false or misleading. If the Administrator has reason 
to believe that a statement or formulation shows that an egg product is 
adulterated or misbranded, or that any labeling, including the size or 
form of any container in use or proposed for use, with respect to eggs 
or egg products, is false or misleading in any way, the Administrator 
may direct that such use be withdrawn unless the labeling or container 
is modified in such a manner as the Administrator may prescribe so that 
it will not be false or misleading, or the formulation of the product 
is altered in such a manner as the Administrator may prescribe so that 
it is not adulterated or would not cause misbranding.
    (2) If the Administrator directs that the use of any label, 
container, or packaging material be withdrawn because it contains any 
statement that is false or misleading, an opportunity for a hearing 
will be provided in accordance with Sec.  500.8(c) of this chapter.


Sec.  590.412  [Redesignated as Sec.  590.413]

0
43. Redesignate Sec.  590.412 as Sec.  590.413.

0
44. Add a new Sec.  590.412 to read as follows:


Sec.  590.412  Approval of generic labels.

    (a) All official plants, including official plants certified under 
a foreign inspection system in accordance with Sec.  590.910, may 
comply with the requirements in Sec.  412.2 of this chapter.
    (b) For the purposes of Sec.  412.2 of this chapter, an official 
establishment or establishment certified under a foreign inspection 
system includes an official plant.

0
45. Revise newly redesignated Sec.  590.413 to read as follows:


Sec.  590.413  Form of official identification symbol and inspection 
mark.

    The shield set forth in Figure 1 of this section containing the 
letters ``USDA'' must be the official identification symbol used in 
connection with egg products to denote that the official plant receives 
official inspection service. The inspection mark used on containers of 
edible egg products is set forth in Figure 1 of this section, except 
that the plant number may be preceded by the letter ``G'' in lieu of 
the word plant. The plant number may also be omitted from the official 
mark if applied on the container's principal display panel or other 
prominent location and preceded by the letter ``G.'' \76\
---------------------------------------------------------------------------

    \76\ The number ``42'' is given as an example only. The plant 
number of the official plant where the product was inspected must be 
shown on each label.

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

[[Page 68678]]

[GRAPHIC] [TIFF OMITTED] TR29OC20.000


0
46. Revise Sec.  590.415 to read as follows:


Sec.  590.415  Use of other official identification.

    All unpasteurized or microbial pathogen-positive egg products 
shipped from an official plant must be marked with the identification 
set forth in Figure 1 of this section. Such product must meet all 
requirements for egg products that are permitted to bear the official 
inspection mark shown in Sec.  590.413, except for pasteurization, heat 
treatment, or other method of treatment sufficient to produce egg 
products that are edible without additional preparation to achieve food 
safety. Such product must not be released into consumer channels until 
it has been subjected to pasteurization, heat treatment, or other 
method of treatment sufficient to produce egg products that are edible 
without additional preparation to achieve food safety. After 
pasteurization or treatment, the product may bear the official 
inspection mark as shown in Sec.  590.413.\77\
---------------------------------------------------------------------------

    \77\ The number ``42'' is given as an example only. The plant 
number of the official plant where the product was inspected must be 
shown on each label.
[GRAPHIC] [TIFF OMITTED] TR29OC20.001

Sec.  590.418  [Amended]

0
47. Amend Sec.  590.418 by removing paragraphs (a) and (c) and 
redesignating paragraph (b) as an undesignated paragraph.

0
48. Revise Sec.  590.420(a) and (b) to read as follows:


Sec.  590.420  Inspection.

    (a) Inspection shall be made, pursuant to the regulations in this 
part, of the processing of egg products in each official plant 
processing egg products for commerce, unless exempted under Sec.  
590.100. Inspections, certifications, or specification-type gradings, 
and other inspections which may be requested by the official plant and 
are in addition to the normal inspection requirements and functions for 
the processing, production, or certification for a wholesome egg 
product under this part,

[[Page 68679]]

shall be made pursuant to the voluntary egg products inspection 
regulations (part 592 of this chapter).
    (b) Any food manufacturing establishment or institution which uses 
any eggs that do not meet the requirements of 21 U.S.C. 1044(a)(1) in 
the preparation of any articles for human food shall be deemed to be a 
plant processing egg products requiring inspection under the 
regulations in this part.
* * * * *


Sec.  590.422  [Amended]

0
49. Amend Sec.  590.422 by removing the last sentence of the section.

0
50. Amend Sec.  590.424 by revising paragraph (b) to read as follows:


Sec.  590.424  Reinspection.

* * * * *
    (b) All egg products brought into any official plant shall be 
identified by the operator of the official plant at the time of receipt 
at the official plant and shall be subject to reinspection by 
inspection program personnel at the official plant in such manner and 
at such times as may be deemed necessary to ensure compliance with the 
regulations in this part. Upon reinspection, if any such product or 
portion of it is found to be unsound, unwholesome, adulterated, or 
otherwise unfit for human food, such product or portion shall be 
condemned and shall receive such treatment as provided in Sec.  
590.422, and shall, in the case of other products, be disposed of 
according to applicable law.

0
51. Amend Sec.  590.430 by revising paragraph (b) to read as follows:


Sec.  590.430  Limitation on entry of material.

* * * * *
    (b) Inedible egg products may be brought into an official plant for 
storage, processing, and reshipment provided they are handled in such a 
manner that adequate segregation and inventory controls are maintained 
at all times. The processing of inedible egg products must be done 
under conditions that will not affect the processing of edible 
products, such as processing in separate areas or at times when no 
edible products are being processed. If the same equipment or areas are 
used to process both inedible and edible eggs, then the equipment and 
processing areas used to process inedible eggs must be thoroughly 
cleaned and sanitized prior to processing any edible egg products.

0
52. Revise Sec.  590.435 to read as follows:


Sec.  590.435  Use of food ingredients and approval of materials.

    (a)(1) No substance which is a ``food additive'' as defined under 
21 U.S.C. 321(s), including sources of radiation, may be used in the 
processing of egg products unless this use is authorized under the 
Federal Food, Drug, and Cosmetic Act.
    (2) No substance which is intended to impart color in any egg 
product may be used unless such use is authorized under the Federal 
Food, Drug, and Cosmetic Act.
    (3) Substances and ingredients used in the processing of egg 
products capable of use as human food must be clean, wholesome, and 
unadulterated.
    (b) Substances permitted for use in egg products in subsection(a) 
will be permitted for such use under this chapter, subject to 
declaration requirements in Sec.  424.22(c) of this chapter and Sec.  
590.411, unless precluded from such use or further restricted in this 
chapter. Such substances must be safe and effective under conditions of 
use and not result in the adulteration of product. The Administrator 
may require, in addition to listing the ingredients, a declaration of 
the additive and the purpose of its use.
    (c) Substances to be used in the processing of egg products must be 
safe under the conditions of their intended use and in amounts 
sufficient to accomplish their intended purpose. Such substances may 
not promote deception or cause the product to be otherwise adulterated 
or unwholesome. Scientific data showing the additive meets the above 
specified criteria must be maintained and made available to FSIS 
inspection program personnel.

0
53. Amend Sec.  590.440 by revising paragraph (c) to read as follows:


Sec.  590.440  Processing ova.

* * * * *
    (c) All products containing ova must be labeled in accordance with 
Sec.  590.411.


Sec.  Sec.  590.500 and  590.502 [Removed]

0
54. Remove Sec. Sec.  590.500 and 590.502.

0
55. Revise Sec.  590.504 to read as follows:


Sec.  590.504  General operating procedures.

    (a) Operations involving the processing, storing, and handling of 
eggs, ingredients, and egg products must be done in a sanitary manner.
    (b)(1) Eggs and egg products are subject to inspection in each 
official plant processing egg products for commerce.
    (2) Any eggs and egg products not processed in accordance with the 
regulations in this part or part 591 or that are not otherwise fit for 
human food must be removed and segregated.
    (c)(1) All loss and inedible eggs or inedible egg products must be 
placed in a container clearly labeled ``inedible'' and containing a 
sufficient amount of denaturant or decharacterant, such as an FDA-
approved color additive, suspended in the product. Eggs must be crushed 
and the substance dispersed through the product in amounts sufficient 
to give the product a distinctive appearance or odor. Inedible product 
may be held in containers clearly labeled ``inedible'' which do not 
contain a denaturant as long as such inedible product is properly 
packaged, labeled and segregated, and inventory controls are 
maintained. Such inedible product must be denatured or decharacterized 
before being shipped from a facility.
    (2) Undenatured egg products or inedible egg products that are not 
decharacterized may be shipped from an official plant for industrial 
use or animal food, provided that it is properly packaged, labeled, and 
segregated, and inventory controls are maintained.
    (d)(1) Egg products must be processed to meet the standard set out 
in Sec.  590.570.
    (2) Unpasteurized or microbial pathogen-positive egg products may 
be shipped from an official plant to another official plant only when 
they are to be pasteurized, heat treated, or treated using other 
methods of treatment sufficient to produce egg products that are edible 
without additional preparation to achieve food safety in the second 
official plant. Official plants must maintain control of shipments of 
unpasteurized or microbial pathogen-positive egg products shipped from 
one official plant to another official plant for pasteurization or 
treatment. Shipping plants must seal such shipments in cars or trucks 
and label them in accordance with Sec.  590.410(c). Containers of 
unpasteurized or microbial pathogen-positive egg product must be marked 
with the identification mark shown in Figure 2 of Sec.  590.415.
    (e) Inspection program personnel may allow an official plant to 
move egg products that have been sampled and analyzed for Salmonella, 
or for any other reason, before receiving the test results, if they do 
not suspect noncompliance by the plant with any provisions of this 
part. The official plant must maintain control of the products 
represented by the sample pending the results.


Sec.  590.506  [Removed]

0
56. Remove Sec.  590.506.

[[Page 68680]]


0
57. Revise Sec.  590.508 to read as follows:


Sec.  590.508  Candling and transfer-room operations.

    Eggs must be handled in a manner that minimizes sweating prior to 
breaking or processing.

0
58. Amend Sec.  590.510 by revising paragraph (a) introductory text, 
paragraphs (c)(1) and (3), and (d) introductory text to read as 
follows:


Sec.  590.510  Classifications of eggs used in the processing of egg 
products.

    (a) The eggs must be sorted and classified into the following 
categories:
* * * * *
    (c) * * *
    (1) When presented for breaking, eggs must have an edible interior 
quality and the shell must be sound and free of adhering dirt and 
foreign material. However, checks and eggs with a portion of the shell 
missing may be used when the shell is free of adhering dirt and foreign 
material and the shell membranes are not ruptured.
* * * * *
    (3) Eggs with meat or blood spots may be used if the spots are 
removed.
    (d) All loss or inedible eggs must be placed in a designated 
container and handled as required in Sec.  590.504(c). Eggs extensively 
damaged during breaking, whether not completely cracked open 
mechanically or in the movement of trays of eligible eggs for hand 
breaking, must be broken promptly. For the purpose of this section and 
Sec.  590.522, inedible and loss eggs include crusted yolks, filthy and 
decomposed eggs, and the following:
* * * * *


Sec.  590.515  [Removed]

0
59. Remove Sec.  590.515.

0
60. Amend Sec.  590.516 by revising the section heading and paragraph 
(a) to read as follows:


Sec.  590.516  Cleaning of eggs prior to packaging, breaking, or 
pasteurizing.

    (a) All eggs, except as provided in Sec.  590.801, must be clean 
prior to packaging, breaking, or pasteurizing. If a sanitizer is used, 
it must be used in accordance with FDA requirements for the intended 
use.
* * * * *


Sec.  590.520  [Removed]

0
61. Remove Sec.  590.520.

0
62. Revise Sec.  590.522 to read as follows:


Sec.  590.522  Egg products processing room operations.

    Each egg used in processed egg products must be broken in a 
sanitary manner and examined to ensure that the contents are acceptable 
for human consumption.


Sec. Sec.  590.530 and 590.532  [Removed]

0
63. Remove Sec. Sec.  590.530 and 590.532.

0
64. Revise Sec.  590.534 to read as follows:


Sec.  590.534  Freezing facilities.

    Freezing rooms, either on or off the premises, must be capable of 
solidly freezing, or reducing to a temperature of 10 [deg]F or lower, 
all liquid egg products.


Sec. Sec.  590.536, 590.538 through 590.540, 590.542, 590.544, 590.546 
through 590.550, 590.552 and 590.560  [Removed]

0
65. Remove Sec. Sec.  590.536, 590.538 through 590.540, 590.542, 
590.544, 590.546 through 590.550, 590.552 and 590.560.

0
66. Revise Sec.  590.570 to read as follows:


Sec.  590.570  Control of pathogens in pasteurized egg products.

    Pasteurized egg products must be produced to be edible without 
additional preparation to achieve food safety and may receive 
additional preparation for palatability or aesthetic, epicurean, 
gastronomic, or culinary purposes. Pasteurized egg products are not 
required to bear a safe-handling instruction or other labeling that 
directs that the product must be cooked or otherwise treated for 
safety.


Sec.  590.575  [Removed]

0
67. Remove Sec.  590.575.

0
68. Revise Sec.  590.580 to read as follows:


Sec.  590.580  Pathogen reduction standards testing.

    (a) Official plants must test to determine that the production of 
egg products is in compliance with the Act and the egg products 
inspection regulations.
    (b) To ensure adequate pasteurization:
    (1) Pasteurized liquid, frozen, and dried egg products, and heat 
treated dried egg whites must be sampled and analyzed for the presence 
of Salmonella spp. Such testing by the official plant must be performed 
in a manner sufficient such that it is possible for the official plant 
to verify that the system is capable of eliminating Salmonella spp. at 
the time that the annual reassessment occurs, and as regularly as 
necessary between annual reassessments, to show that the system, when 
tested, is working.
    (2) Samples must be analyzed for the presence of Salmonella spp. 
with such frequency and using such laboratory methods as is sufficient 
to ensure that product is not adulterated. For each category of 
product, sampling should be conducted on a rotating basis.
    (3) Samples must be drawn from the final packaged form.
    (c) Results of all partial and completed analyses performed under 
paragraph (b) of this section must be provided to inspection program 
personnel promptly upon receipt by the official plant. Positive test 
results must be provided to inspection program personnel immediately 
upon receipt by the official plant.

0
69. Add Sec.  590.590 to read as follows:


Sec.  590.590  Use of irradiated shell eggs to produce egg products.

    Irradiated shell eggs used to produce pasteurized egg products must 
be used in conjunction with heat or another lethality treatment 
sufficient to produce egg products that are edible without additional 
preparation to achieve food safety. Unless otherwise approved by FDA, 
the irradiation treatment of the shell eggs must precede the heat or 
other lethality treatment applied to the egg products.


Sec. Sec.  590.600 through 590.680   [Removed]

0
70. Remove the undesignated center heading ``Exempted Egg Products 
Plants'' and Sec. Sec.  590.600 through 590.680.

0
71. Add an undesignated center heading and Sec.  590.700 to read as 
follows:

Inspection and Disposition of Restricted Eggs


Sec.  590.700  Prohibition on disposition of restricted eggs.

    (a) No person may buy, sell, or transport, or offer to buy or sell, 
or offer or receive for transportation in any business in commerce any 
restricted eggs capable of use as human food, except as authorized in 
Sec. Sec.  590.100 or 590.720.
    (b) No egg handler may possess with the intent to use, or use, any 
restricted eggs in the preparation of human food, except as provided in 
Sec. Sec.  590.100 or 590.720.

0
72. Add Sec.  590.720 to read as follows:


Sec.  590.720  Disposition of restricted eggs.

    (a) Except as exempted in Sec.  590.100, eggs classified as checks, 
dirts, incubator rejects, inedibles, leakers, or loss must be disposed 
of by one of the following methods at the point and time of 
segregation:
    (1) Checks and dirts must be labeled in accordance with Sec.  
590.800 and

[[Page 68681]]

shipped to an official plant for segregation and processing. Inedible 
and loss eggs must not be intermingled in the same container with 
checks and dirts.
    (2) By destruction in a manner that clearly identifies the products 
as being inedible and not for human consumption, such as crushing and 
denaturing or decharacterizing in accordance with Sec.  590.504(c)(1). 
The products must also be identified as ``Inedible Egg Product-Not To 
Be Used As Human Food.''
    (3) Processing for industrial use or for animal food. Such products 
must be handled in accordance with Sec.  590.504(c) and identified as 
provided in Sec. Sec.  590.840 and 590.860, or properly handled in a 
manner that clearly identifies the products as being inedible and not 
for human consumption and does not adulterate egg product intended for 
human consumption.
    (4) By coloring the shells of loss and inedible eggs with a 
sufficient amount of an FDA-approved color additive to give a distinct 
appearance or applying a substance that will penetrate the shell and 
decharacterize the contents of the egg. However, lots of eggs 
containing significant percentages of eggs having small to medium blood 
spots or meat spots, but no other types of loss or inedible eggs, may 
be shipped directly to official plants, provided they are conspicuously 
labeled with the name and address of the shipper and the wording 
``Spots--For Processing Only In Official Egg Products Plants.''
    (5) Incubator rejects must be broken or crushed and denatured or 
decharacterized in accordance with Sec.  590.504(c)(1) and labeled as 
required in Sec. Sec.  590.840 and 590.860.
    (b) Eggs that are packed for the ultimate consumer and have been 
found to exceed the tolerance for restricted eggs permitted in the 
official standards for U.S. Consumer Grade B but have not been shipped 
for retail sale must be identified as required in Sec. Sec.  590.800 
and 590.860 and must be shipped directly or indirectly:
    (1) To an official plant for proper segregation and processing; or
    (2) Be re-graded so that they comply with the official standards; 
or
    (3) Used as other than human food.
    (c) Records must be maintained as provided in Sec.  590.200 to 
ensure proper disposition.

0
73. Add Sec.  590.801 to read as follows:


Sec.  590.801  Nest-run or washed ungraded eggs.

    Nest-run or washed ungraded eggs are exempt from the labeling 
provisions in Sec.  590.800. However, when such eggs are sold to 
consumers, they may not exceed the tolerance for restricted eggs for 
U.S. Consumer Grade B shell eggs.


Sec. Sec.  590.900 through 590.970  [Removed]

0
74. Remove undesignated center heading ``Imports'' and Sec. Sec.  
590.900 through 590.970.

0
75. Add subpart B, consisting of Sec. Sec.  590.900 through 590.965, to 
read as follows:
Subpart B--Imports
Sec.
590.900 Definitions; requirements for importation into the United 
States.
590.901 Egg products offered for entry and entered to be handled and 
transported as domestic; entry into official plants; transportation.
590.905 Importation of restricted eggs.
590.910 Eligibility of foreign countries for importation of egg 
products into the United States.
590.915 Imported products; foreign inspection certificates required.
590.920 Import inspection application.
590.925 Inspection of eggs and egg products offered for entry.
590.930 Eggs and egg products offered for entry, retention in 
customs custody; delivery under bond; movement prior to inspection; 
handling; equipment and assistance.
590.935 Means of conveyance and equipment used in handling egg 
products offered for entry to be maintained in sanitary condition.
590.940 Identification of egg products offered for entry; official 
import inspection marks and devices.
590.945 Eggs and egg products offered for entry; reporting of 
findings to customs; handling of articles refused entry; appeals, 
how made; denaturing procedures.
590.950 Labeling of immediate containers of egg products offered for 
entry.
590.955 Labeling of shipping containers of egg products offered for 
entry.
590.956 Relabeling of imported egg products.
590.960 Small importations for importer's personal use, display, or 
laboratory analysis.
590.965 Returned to the United States inspected and identified egg 
products; exemption.

Subpart B--Imports


Sec.  590.900  Definitions; requirements for importation into the 
United States.

    (a) When used in this subpart, the following terms will be 
construed to mean:
    (1) Import (Imported). To bring within the territorial limits of 
the United States, whether that arrival is accomplished by land, air, 
or water.
    (2) Offer(ed) for entry. The point at which the importer presents 
the imported product for reinspection.
    (3) Entry (entered) means the point at which imported product 
offered for entry receives reinspection and is marked with the official 
mark of inspection, as required by Sec.  590.940.
    (4) Official Import Inspection Establishment. This term means any 
establishment, other than an official establishment as defined in Sec.  
301.2 of this chapter, where inspections are authorized to be conducted 
as prescribed in Sec.  590.925.
    (b) No egg products may be imported into the United States unless 
they are healthful, wholesome, fit for human food, not adulterated, and 
contain no dye, chemical, preservative, or ingredient which renders 
them unhealthful, unwholesome, unadulterated, or unfit for human food. 
Such products must also comply with the regulations prescribed in this 
subpart to ensure that they adhere to the standards provided for in the 
Act. The provisions of this subpart will apply to these products only 
if they are capable for use as human food.
    (c) Approval for Federal import inspection must be in accordance 
with Sec. Sec.  590.140 through 590.149.
    (d) Egg products may be imported only if they are processed solely 
in the countries listed in Sec.  590.910(b).


Sec.  590.901  Egg products offered for entry and entered to be handled 
and transported as domestic; entry into official plants; 
transportation.

    (a) All egg products, after entry into the United States in 
compliance with this subpart, will be deemed and treated and, except as 
provided in Sec. Sec.  590.935 and 590.960, will be handled and 
transported as domestic product, and will be subject to the applicable 
provisions of this part and to the provisions of the Egg Products 
Inspection Act and the Federal Food, Drug, and Cosmetic Act.
    (b) Imported egg products entered in accordance with this subpart 
may, subject to the provisions of the regulations, be taken into 
official plants and be mixed with or added to egg products that are 
inspected and passed or exempted from inspection in such plants.
    (c) Imported egg products that have been inspected and passed under 
this subpart may be transported in commerce only upon compliance with 
the applicable regulations.


Sec.  590.905  Importation of restricted eggs.

    (a) No containers of restricted eggs other than checks or dirties 
will be imported into the United States. The shipping containers of 
such eggs shall be identified with the name, address,

[[Page 68682]]

and country of origin of the exporter, and the date of pack and the 
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.
    (b) For properly sealed and certified shipments of shell eggs for 
breaking at an official egg products plant, the containers need not be 
labeled, provided that the shipment is segregated and controlled upon 
arrival at the destination breaking plant.


Sec.  590.910  Eligibility of foreign countries for importation of egg 
products into the United States.

    (a) Whenever it is determined by the Administrator that the system 
of egg products inspection maintained by any foreign country is such 
that the egg products produced in such country are processed, labeled, 
and packaged in accordance with, and otherwise comply with, the 
standards of the Act and these regulations including, but not limited 
to the same sanitary, processing, facility requirements, and Government 
inspection as required in Sec. Sec.  590.500 through 590.580 applicable 
to inspected articles produced within the United States, notice of that 
fact will be given according to paragraph (b) of this section. 
Thereafter, egg products from such countries shall be eligible for 
importation into the United States subject to the provisions of this 
part and other applicable laws and regulations. Such product must meet, 
to the extent applicable, the same standards and requirements that 
apply to comparable domestic product as set forth in these regulations. 
Egg products from foreign countries not deemed eligible in accordance 
with paragraph (b) of this section are not eligible for importation 
into the United States, except as provided by Sec.  590.960. In 
determining if the inspection system of a foreign country is the 
equivalent of the system maintained in the United States, the 
Administrator shall review the inspection regulations of the foreign 
country and make a survey to determine the manner in which the 
inspection systems are administered within the foreign country. After 
approval of the inspection system of a foreign country, the 
Administrator may, as often and to the extent deemed necessary, 
authorize representatives of the Department to review the system to 
determine that it is maintained in such a manner as to be the 
equivalent of the system maintained by the United States.
    (b) A list of countries eligible to export egg products to the 
United States is maintained at http://www.fsis.usda.gov/importlibrary.


Sec.  590.915  Imported products; foreign inspection certificates 
required.

    (a) Except as provided in Sec. Sec.  590.960 and 590.965, each 
consignment imported into the United States must have an electronic 
foreign inspection certification or a paper foreign inspection 
certificate issued by an official of the foreign government agency 
responsible for the inspection and certification of the product.
    (b) An official of the foreign government agency must certify that 
any product described on any official certificate was produced in 
accordance with the regulatory requirements of Sec.  590.910.
    (c) The electronic foreign inspection certification must be in 
English, be transmitted directly to FSIS before the product's arrival 
at the official import inspection establishment and be available to 
inspection program personnel.
    (d) The paper foreign inspection certificate must accompany each 
consignment; be submitted to inspection program personnel at the 
official import inspection establishment; be in English; and bear the 
official seal of the foreign government responsible for the inspection 
of the product, and the name, title, and signature of the official 
authorized to issue the inspection certificates for products imported 
into the United States.
    (e) The electronic foreign inspection certification and paper 
foreign inspection certificate must contain:
    (1) The date;
    (2) The foreign country of export and the producing foreign 
establishment number;
    (3) The species used to produce the product and the source country 
and foreign establishment number, if the source materials originate 
from a country other than the exporting country;
    (4) The product's description including the process category, the 
product category, and the product group;
    (5) The name and address of the importer or consignee;
    (6) The name and address of the exporter or consignor;
    (7) The number of units (pieces or containers) and the shipping or 
identification mark on the units;
    (8) The net weight of each lot; and
    (9) Any additional information the Administrator requests to 
determine whether the product is eligible to be imported into the 
United States.


Sec.  590.920  Import inspection application.

    (a) Applicants must submit an import inspection application to 
apply for the inspection of any product offered for entry. Applicants 
may apply for inspection using a paper or electronic application form.
    (b) Import inspection applications for each consignment must be 
submitted (electronically or on paper) to FSIS in advance of the 
shipment's arrival at the official import establishment where the 
product will be reinspected, but no later than when the entry is filed 
with U.S. Customs and Border Protection.
    (c) The provisions of this section do not apply to products that 
are exempted from inspection by Sec. Sec.  590.960 and 590.965.


Sec.  590.925  Inspection of egg products offered for entry.

    (a)(1) Except as provided in Sec. Sec.  590.960 and 590.965 and 
paragraph (b) of this section, egg products offered for entry from any 
foreign country must be reinspected at an official import inspection 
establishment or official plant by inspection program personnel before 
they may be allowed entry into the United States.
    (2) Every lot of product must routinely be given visual 
reinspection by inspection program personnel for appearance and 
condition and be checked for certification and label compliance as 
provided in Sec. Sec.  590.915, 590.950, and 590.955.
    (3) Inspection program personnel must consult the electronic 
inspection system for reinspection instructions. The electronic 
inspection system will assign reinspection levels and procedures based 
on established sampling plans and established product and plant 
history.
    (b) Inspection program personnel may take, without cost to the 
United States, from each consignment of egg product offered for entry, 
such samples of the products as are deemed necessary to determine the 
eligibility of the products for entry into commerce of the United 
States.


Sec.  590.930  Egg products offered for entry, retention in customs 
custody; delivery under bond; movement prior to inspection; handling; 
equipment and assistance.

    (a) No egg products required by this subpart to be inspected will 
be released from customs custody prior to required inspections, but 
such product may be delivered to the importer, or his agent, prior to 
inspection, if the importer furnishes a bond, in a form prescribed by 
the Secretary of the Treasury, on the condition that the product must 
be returned, if demanded, to the collector

[[Page 68683]]

of the port where the product was offered for clearance through 
customs.
    (b) Notwithstanding paragraph (a) of this section, no product 
required by this subpart to be inspected will be moved prior to 
inspection from the port of arrival where first unloaded, and if 
arriving by water from the wharf where first unloaded at such port, to 
any place other than the place designated in accordance with this part 
as the place where the product must be inspected; and no product will 
be conveyed in any manner other than in compliance with this subpart.
    (c) The importer, or his agent, must furnish such equipment and 
must provide such assistance for handling and inspecting, where 
applicable, egg products offered for entry as the program inspector may 
require.
    (d) Official import inspection establishments must provide 
buildings and equipment that meet the sanitation requirements contained 
in part 416 of this chapter.


Sec.  590.935  Means of conveyance and equipment used in handling egg 
products offered for entry to be maintained in sanitary condition.

    (a) Compartments of means of conveyance transporting any egg 
products to the United States, and all chutes, platforms, racks, 
tables, tools, utensils, and all other devices used in moving and 
handling any egg products offered for entry into the United States, 
must be maintained in accordance with part 416.4 of this chapter.
    (b) All conveyances containing imported liquid egg products must be 
sealed by inspection authorities in the exporting country. Seals may be 
broken at U.S. port-of-entry for purposes of inspection by program 
inspectors or customs officers.


Sec.  590.940  Identification of egg products offered for entry; 
official import inspection marks and devices.

    (a) Except for products offered for entry from Canada, egg products 
that upon reinspection are found to be acceptable for entry into the 
United States must be identified as ``U.S. Inspected and Passed'' 
product. The official inspection legend shown in paragraph (b) of this 
section will identify product only after completion of official import 
inspection and product acceptance.
    (b) The official mark for identifying egg products offered for 
entry as ``U.S. Inspected and Passed'' must be in the following form, 
and any device approved by the Administrator for applying such mark 
must be an official device.\1\
---------------------------------------------------------------------------

    \1\ The number ``I-38'' is given as an example only. The plant 
number of the official plant, facility, or official import 
inspection establishment where the product was inspected must be 
shown on each stamp impression.
[GRAPHIC] [TIFF OMITTED] TR29OC20.002

    (c) Owners or operators of plants, other than official plants, who 
want to have import inspections made at their plants, must apply to the 
Administrator for approval of their establishments for such purpose. 
Application must be made on a form furnished by the Program, Food 
Safety and Inspection Service, U.S. Department of Agriculture, 
Washington, DC, and must include all information called for by that 
form.
    (d) No brand manufacturer or other person will cast or otherwise 
make, without an official certificate issued by inspection program 
personnel, a brand or other marking device containing an official 
inspection legend, or simulation thereof, as shown in Sec.  590.940(b).
    (e) The inspection legend may be placed on containers of product 
before completion of the official import inspection if the containers 
are being inspected by inspection program personnel who report directly 
to a program supervisor, the product is not required to be held at the 
official import inspection establishment pending receipt of laboratory 
test results, and a written procedure for the controlled stamping, 
submitted by the official import inspection establishment and approved 
by the Food Safety and Inspection Service, is on file at the import 
inspection location where the inspection is to be performed.
    (f)(1) The written procedure for the controlled release and 
identification of product should be in the form of a letter and must 
include the following:
    (i) That stamping under this subpart is limited to those lots of 
product that can be inspected on the day that certificates for the 
product are examined;
    (ii) That all products that have been pre-stamped will be stored in 
the facility where the import inspection will occur;
    (iii) That inspection marks applied under this part will be removed 
from any lot of product subsequently refused entry on the day the 
product is rejected; and
    (iv) That the establishment will maintain a daily stamping log 
containing the following information for each lot of product: The date 
of inspection, the country of origin, the foreign establishment number, 
the product name, the number of units, the shipping container marks and 
foreign inspection certificate number covering the product to be 
inspected. The daily log must be retained by the establishment in 
accordance with Sec.  590.200.

[[Page 68684]]

    (2) An establishment's controlled program privilege may be 
cancelled orally or in writing by the inspector who is supervising its 
enforcement whenever the inspector finds that the establishment has 
failed to comply with the provisions of this subpart or any conditions 
imposed pursuant thereto. If the cancellation is oral, the decision and 
the reasons for it must be confirmed in writing, as promptly as 
circumstances allow. Any person whose controlled pre-stamping program 
privilege has been cancelled may appeal the decision to the 
Administrator, in writing, within ten (10) days after receiving written 
notification of the cancellation. The appeal must state all of the 
facts and reasons upon which the person relies to show that the 
controlled program was wrongfully cancelled. The Administrator will 
grant or deny the appeal, in writing, stating the reasons for such 
decision, as promptly as circumstances allow. If there is a conflict as 
to any material fact, a hearing must be held to resolve such conflict. 
Rules of practice concerning such a hearing will be adopted by the 
Administrator. The cancellation of the controlled pre-stamping 
privilege will be in effect until there is a final determination of the 
preceding.


Sec.  590.945  Egg products offered for entry; reporting of findings to 
customs; handling of articles refused entry; appeals, how made; 
denaturing procedures.

    (a)(1) Inspection program personnel must report their findings as 
to any product that has been inspected in accordance with this subpart 
to the Director of Customs at the original port of entry where the same 
is offered for clearance through Customs inspection.
    (2) When product is refused entry into the United States, the 
official mark to be applied to the product refused entry must be in the 
following form:
[GRAPHIC] [TIFF OMITTED] TR29OC20.003

    (3) When product has been identified as ``U.S. Refused Entry,'' 
inspection program personnel must request the Director of Customs to 
refuse admission of such product and to direct that it be exported by 
the owner or importer within the time specified in this section, unless 
the owner or importer, within the specified time, causes it to be 
destroyed by disposing of it under the supervision of program 
inspectors so that the product can no longer be used as human food, or 
by converting it to animal food uses, if permitted by the Food and Drug 
Administration. The owner or importer of the refused entry product must 
not transfer legal title to such product, except to a foreign importer 
for direct and immediate exportation, or to an end user, e.g., an 
animal food manufacturer or a renderer, for destruction for human food 
purposes. ``Refused entry'' product must be delivered to and used by 
the manufacturer or renderer within the 45-day time limit provided in 
paragraph (a)(4) of this section. Even if such title is illegally 
transferred, the subsequent purchaser will still be required to export 
the product or have it destroyed under paragraph (a)(4) of this 
section.
    (4) The owner or importer will have 45 days after notice is given 
by FSIS to the Director of Customs at the original port of entry to 
take the action required in paragraph (a)(3) of this section for 
``refused entry'' product. An extension beyond the 45-day period may be 
granted by the Administrator when extreme circumstances warrant it, 
e.g., a dock workers' strike or an unforeseeable vessel delay.
    (5) If the owner or importer fails to take the required action 
within the time specified under paragraph (a)(4) of this section, the 
Department will take such actions as may be necessary to effectuate its 
order to have the product destroyed for human food purposes. The 
Department will seek court costs and fees, storage, and proper expenses 
in the appropriate forum.
    (6) No egg product that has been refused entry and exported to 
another country pursuant to paragraph (a)(3) of this section may be 
returned to the United States under any circumstances. Any such product 
so returned to the United States will be subject to administrative 
detention in accordance with section 1048 of the Act and seizure and 
condemnation in accordance with section 1049 of the Act.
    (7) Egg products that have been refused entry solely because of 
misbranding may be brought into compliance with the requirements of 
this chapter under the supervision of an authorized representative of 
the Administrator.
    (b) Upon the request of the Director of Customs at the port where 
an egg product is offered for clearance through the customs, the 
importer of the product must, at the importer's own expense, 
immediately return to the Director any product that has been delivered 
to the importer under this subpart and subsequently designated ``U.S. 
Refused Entry'' or found in any request not to comply with the 
requirements in this part.
    (c) Except as provided in Sec.  590.930(a) or (b), no person will 
remove or cause to be removed from any place designated as the place of 
inspection of egg products that the regulations in this part require to 
be identified in any way, unless the same has been clearly and legibly 
identified in compliance with this part.
    (d) Any person receiving inspection services may, if dissatisfied 
with any decision of a program inspector relating to any inspection, 
file an appeal from such decision. Any such appeal from a decision of a 
program inspector must be made to the inspector's immediate supervisor 
having jurisdiction over the subject matter of the appeal, and such 
supervisor must determine whether the inspector's decision was correct. 
Review of such an appeal determination, when requested, must be made by 
the

[[Page 68685]]

immediate supervisor of the Department employee making the appeal 
determination. The egg products involved in any appeal must be 
identified by U.S. retained tags and segregated in a manner approved by 
the inspector pending completion of an appeal inspection.
    (e) All loss or inedible eggs, or inedible egg products must be 
disposed of in accordance with Sec.  590.504(c)(1).


Sec.  590.950  Labeling of immediate containers of egg products offered 
for entry.

    (a) Immediate containers of product offered for entry into the 
United States must bear a label, printed in English, showing:
    (1) The name of the product;
    (2) The name of the country of origin of the product, and for 
consumer packaged products, preceded by the words ``Product of,'' which 
statement must appear immediately under the name of the product;
    (3) [Reserved];
    (4) The word ``Ingredients'' followed by a list of the ingredients 
in order of descending proportions by weight, if applicable,;
    (5) The name and place of business of the manufacturer, packer, or 
distributor, qualified by a phrase which reveals the connection that 
such person has with the product;
    (6) An accurate statement of the quantity;
    (7) The inspection mark of the country of origin;
    (8) The date of production and the plant number of the plant at 
which the egg products were processed or packed.
    (b) For properly sealed and certified shipments of shell eggs for 
breaking at an official plant, the immediate containers need not be 
labeled, provided that the shipment is segregated and controlled upon 
arrival at the destination breaking plant.
    (c) The labels must not be false or misleading in any respect.


Sec.  590.955  Labeling of shipping containers of egg products offered 
for entry.

    Shipping containers of imported egg products are required to bear 
in a prominent and legible manner the name of the product, the name of 
the country of origin, the foreign inspection system plant number of 
the plant in which the product was processed, shipping or 
identification marks, production codes, and the inspection mark of the 
country or origin. Labeling on shipping containers must be examined at 
the time of inspection in the United States and if found to be false or 
misleading, the product must be refused entry.


Sec.  590.956  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 
plant or official import inspection establishment. The new label for 
such product must indicate the country of origin, except for egg 
products that are processed (repasteurized or, in the case of dried 
product, dry blended with product produced in the United States) in an 
official 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''.


Sec.  590.960  Small importations for importer's personal use, display, 
or laboratory analysis.

    Egg products (other than those that are forbidden entry by other 
Federal law or regulation) from any country, that are exclusively for 
the importer's personal use, display, or laboratory analysis, and not 
for sale or distribution; that are sound, healthful, wholesome, and fit 
for human food; and that are not adulterated and do not contain any 
substance not permitted by the Act or regulations, may be admitted into 
the United States without a foreign inspection certificate. Such 
products are not required to be inspected upon arrival in the United 
States and may be shipped to the importer without further restriction 
under this part, except as provided in 9 CFR 590.925(b), provided that 
the Department may, with respect to any specific importation, require 
that the importer certify that such product is exclusively for said 
importer's personal use, display, or laboratory analysis and not for 
sale or distribution. The amount of liquid, frozen, or dried egg 
products imported must not exceed 50 pounds.


Sec.  590.965  Returned to the United States inspected and marked egg 
products; exemption.

    U.S. inspected and passed and so marked egg products exported to 
and returned from foreign countries will be admitted into the United 
States without compliance with this part upon notification to and 
approval of the Food Safety and Inspection Service, in specific cases.

SUBCHAPTER I-EGG PRODUCTS INSPECTION ACT

0
76. Add part 591 to read as follows:

PART 591--SANITATION REQUIREMENTS AND HAZARD ANALYSIS AND CRITICIAL 
CONTROL POINT SYSTEMS

Sec.
591.1 Basic requirements.
591.2 Hazard analysis and HACCP plan.

    Authority:  21 U.S.C. 1031-1056; 7 CFR 2.18, 2.53.


Sec.  591.1  Basic requirements.

    (a) All official plants must comply with the sanitation 
requirements contained in part 416 of this chapter, Sanitation, except 
as otherwise provided in this chapter.
    (b) All official plants must comply with the Hazard Analysis and 
Critical Control Point (HACCP) Systems requirements contained in part 
417 of this chapter, except as otherwise provided in this chapter.
    (c) For the purposes of this chapter, parts 416, Sanitation, 417, 
Hazard Analysis and Critical Control Point (HACCP) Systems, and 500, 
Rules of Practice, an official establishment or establishment includes 
an official plant.


Sec.  591.2  Hazard analysis and HACCP plan.

    (a) Pursuant to 21 U.S.C. 1035 and 1043, the failure of an official 
plant to develop and implement a HACCP plan that complies with part 417 
of this chapter may render the products produced under those conditions 
adulterated.
    (b) Pursuant to 21 U.S.C. 1035 and 1043, the failure of an official 
plant to operate in accordance with the requirements in part 416 of 
this chapter, Sanitation, may render the products produced under those 
conditions adulterated.
    (c) Pursuant to 21 U.S.C. 1035 and 1043, the failure of an official 
plant to operate in accordance with the Hazard Analysis and Critical 
Control Point (HACCP) Systems requirements in part 417 of this chapter, 
may render the product produced under those conditions adulterated.
    (d) Pursuant to 21 U.S.C. 1035 and 1043, the failure of an official 
plant to operate in accordance with the requirements in part 500 of 
this chapter, Rules of Practice, and part 590 of this chapter, 
Inspection of Eggs and Egg Products (Egg Products Inspection Act) may 
render the products produced under those conditions adulterated.

    Done at Washington, DC.
Paul Kiecker,
Administrator.
[FR Doc. 2020-20151 Filed 10-28-20; 8:45 am]
BILLING CODE 3410-DM-P