[Federal Register: May 13, 2003 (Volume 68, Number 92)]
[Rules and Regulations]
[Page 25484-25485]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13my03-3]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 56
[Docket No. PY-02-007]
RIN 0581-AC24
Requirements for the USDA ``Produced From'' Grademark for Shell
Eggs
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Agricultural Marketing Service (AMS) is clarifying the
requirements for using the ``Produced From'' grademark for shell eggs.
Use of this grademark began in April 1998. Since then, questions have
arisen regarding the regulatory language. This amendment clarifies the
language of the ``Produced From'' grademark
[[Page 25485]]
requirements by removing the reference to continuous supervision. This
action is to ensure the integrity of the USDA quality consumer
grademark.
EFFECTIVE DATE: June 12, 2003.
FOR FURTHER INFORMATION CONTACT: Rex A. Barnes, Chief, Grading Branch,
(202) 720-3271.
SUPPLEMENTARY INFORMATION:
Background
AMS administers a voluntary grading program for shell eggs under
the Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621 et
seq.). Any interested person, commercial firm, or government agency
that applies for service must comply with the terms and conditions of
the regulations and must pay for the services rendered. AMS graders
monitor processing operations and verify the grade and size of eggs
packed into packages bearing the USDA grademark.
Current regulations allow for the use of several different
grademarks to identify consumer-pack USDA graded shell eggs or products
prepared from them. The regulations also include the eligibility
requirements for eggs to be identified with an official grademark. One
requirement is that only eggs produced under the continuous supervision
of a grader may be identified as U.S. Consumer Grade AA or A.
A ``Produced From'' grademark was added to the regulations,
effective April 20, 1998 (63 FR 13329, March 19, 1998). As currently
written, the regulations state that ``the ``Produced From'' grademark
``may be used to identify products for which there are no official U.S.
grade standards (e.g., pasteurized shell eggs), provided that these
products are approved by the Agency and are prepared from U.S. Consumer
Grade AA or A shell eggs under the continuous supervision of a
grader.''
The intent of the regulations was to ensure that the eggs used to
produce the products were U.S. Consumer Grade AA or A. However, the
regulations could also be interpreted to mean that the products
produced from the U.S. Consumer Grade AA or A shell eggs must be
produced under continuous supervision. However, this was not the
Department's intent nor is it a requirement.
The Agency determined that the reference to both U.S. Consumer AA
and A and to continuous supervision was redundant and confusing.
Therefore, to clarify the regulatory language, the reference to
continuous supervision is removed.
Proposed Rule and Comments
The proposed rule was published in the Federal Register January 9,
2003 (68 FR 1169). The comment period ended March 10.
Two comments were received, each from a group of students taking
the same course in an accelerated university business curriculum. Both
groups discussed research they conducted among vendors, consumers, and
local agricultural interests about shell egg grading. Both groups
supported the proposed amendment.
Executive Order 12866
This final rule has been determined to be not significant for
purposes of Executive Order 12866 and, therefore, has not been reviewed
by the Office of Management and Budget (OMB).
Regulatory Flexibility
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA)(5 U.S.C. 601 et seq.), the AMS has considered the economic
impact of this rule on small entities and has determined that its
provisions would not have a significant economic impact on a
substantial number of small entities.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. The Small Business
Administration defines small entities that produce and process chicken
eggs as those whose annual receipts are less than $9,000,000 (13 CFR
121.201). Approximately 625,000 egg laying hens are needed to produce
enough eggs to gross $9,000,000.
Currently, the Agricultural Marketing Act of 1946, as amended (7
U.S.C. 1621 et seq.) authorizes a voluntary grading program for shell
eggs. Shell egg processors that apply for service must pay for the
services rendered. These user fees are proportional to the volume of
shell eggs graded, so that costs are shared by all users. Plants in
which these grading services are performed are called official plants.
Shell egg processors who do not use USDA's grading service may not use
the USDA grade shield. There are about 625 shell egg processors
registered with the Department that have 3,000 or more laying hens. Of
these, 175 are official plants that use USDA's grading service and
would be subject to this proposed rule. Of these 175 official plants,
57 meet the small business definition.
This rule will benefit large and small processors in the industry.
It is intended to clarify a regulatory provision which has caused some
confusion and involves no additional costs.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. This
rule will not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule. There are no administrative procedures that must be exhausted
prior to any judicial challenge to the provisions of this rule.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.), OMB has approved the information collection and
recordkeeping requirements included in this rule, and there are no new
requirements. The assigned OMB control number is 0581-0128.
List of Subjects in 7 CFR Part 56
Eggs and egg products, Food grades and standards, Food labeling,
Reporting and recordkeeping requirements.
0
For reasons set forth in the preamble, 7 CFR part 56 is amended as
follows:
PART 56--VOLUNTARY GRADING OF SHELL EGGS
0
1. The authority citation for part 56 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
0
2. In Sec. 56.36, paragraph (a)(3) is amended by adding a period after
the word ``eggs'' the second time it appears in the paragraph and by
removing the words ``under the continuous supervision of a grader.''
Dated: May 7, 2003.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 03-11889 Filed 5-12-03; 8:45 am]
BILLING CODE 3410-02-P