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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 54

[No. LS-95-006]

Amendment to Meats, Prepared Meats, and Meat Products (Grading,

Certification and Standards)

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: The Agricultural Marketing Service (AMS) is amending the

Meats, Prepared Meats, and Meat Products (Grading, Certification and

Standards) by adding definitions, changing certificate forms, removing

two outdated official stamp imprints, and adding three new official

stamp imprints. Program changes made to better serve our customers and

improve efficiency resulted in development of the above new items, and

caused the disuse of the old stamps and certificates.

EFFECTIVE DATE: April 22, 1996.

FOR FURTHER INFORMATION CONTACT: Larry R. Meadows, Chief, Meat Grading

and Certification Branch, (202) 720-1246.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778 and the Regulatory Flexibility Act

This rule has been determined to be not significant for purposes of

Executive Order 12866 and therefore has not been reviewed by OMB.

This rule has been reviewed under Executive Order 12778, Civil

Justice Reform. It is not intended to have retroactive effect. This

rule would not preempt any State or local laws, regulations, or

policies unless they present an irreconcilable conflict with this rule.

There are no administrative procedures which must be exhausted prior to

any judicial challenge to this rule or the application of its

provisions.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA) (Pub. L. 96-354, 5 U.S.C. 601 et seq.), the Administrator of

the AMS has considered the economic impact of this action on small

entities.

The purpose of the RFA is to fit regulatory actions to the scale of

the

[[Page 11505]]

businesses subject to such actions in order that small businesses will

not be unduly or disproportionately burdened.

After implementation of the rule the unit cost for providing meat

grading and certification services will remain at approximately $.0009

per pound. Therefore, implementation of the changes will not

significantly affect the cost of providing meat grading and

certification services to the meat industry. Accordingly, the

Administrator of AMS has determined that this rule will not have a

significant economic impact on a substantial number of small entities

as defined by the RFA.

Paperwork Reduction Act

The action replaces two forms with new editions. However, the new

forms will be completed by AMS graders will not be a burdon on the

public. Therefore, under the provisions of the Paperwork Reduction Act

the forms will not be reviewed by OMB.

Background

The Secretary of Agriculture is authorized under the Agricultural

Marketing Act (AMA) of 1946, as amended, 7 U.S.C. 1621 et seq., to

provide voluntary Federal meat grading and acceptance services to

facilitate the orderly marketing of meat and meat products and to

enable consumers to obtain the quality of meat they desire. As program

activities or industry practices change, the regulations governing such

activities require updating. Since July 1990, when Title 7, Subtitle B,

Chapter I, Subchapter C, Part 54, Sections 54.1-54.26 was last amended,

the program revised official certificates and other documents. The two

new certificates, which allow up to five program employees to charge an

applicant on one document, significantly reduce preparation time,

certificate usage, and documents sent to users of the service. As a

result of the changes to the official certificates, new representations

are included in the rule.

The program will also add a single stamp and a series of three new

official stamps, which were developed to prevent repetitive motion

injuries to our personnel. The program conducted a study of all aspects

of the work, and consulted experts in ergonomics prior to developing

the new stamps. The new stamps will allow meat graders to apply

significantly fewer stamp imprints while ensuring complete grade

identification within the slaughter facility. The new stamps will be

used in conjunction with grade labeled bags ensuring full grade

identification throughout the marketing chain. The new stamps will also

reduce the amount of meat branding ink placed on carcasses. Meat

branding ink on calf, veal, lamb, and in processed beef products can

produce discolored spots, which detract from appearances. The new

certificates and stamps are now in use.

The program will remove the following two outdated, no longer in

use, official stamps: ``U.S.D.A. PRE-IDENT FEDERAL PURCHASE,'' and

``U.S.D.A. EXAMINED AS CERTIFIED.''

The program substitutes ``Certification service'' for ``Acceptance

service''--in all locations--because not all work performed results in

accepted products, and adds the newly-developed Quality Systems

Certification and Contract Verification Programs, which are not

currently defined under the regulations and require explanation. The

Quality Systems Certification Program (QSCP) evaluates processes to

assure that vendors produce acceptable products without evaluating end

products on a fulltime basis. The Contract Verification Program

evaluates contractually purchased products, and provides purchasers an

evaluation of how accurately a contractor is adhering to contractual

requirements. Both programs will be available on a single-use

consultation-fee basis or on a retainer-fee basis for long term usage.

In conjunction with the new QSCP service, the program developed a new

identification mark. The program provides for the new mark to be used

on advertising materials but not directly on retail packaging.

Comments

On October 13, 1995, the Agency published in the Federal Register

(60FR198) a proposed rule to amend the regulations adding new stamp

imprints, services, and certificate forms, and removing no longer in

use stamps and certificate forms which were not being used. This

proposed rule was published allowing the opportunity for public comment

as a means for providing full participation in the rulemaking process.

Comments on this proposed rule were requested by November 12, 1995.

During the 30-day comment period, the Agency received comments from one

meat industry group.

Discussion of Comments

The commenter expressed concern about stamp imprint legibility of

the New stamp because of rough exterior surface fat. The Agency

realizes that changing industry practices have resulted in a less

desirable surface to apply a stamp imprint. However, after testing the

new stamp on hundreds of thousands of carcasses, the Agency determined

the new stamp applies a satisfactory imprint on surfaces that are

sufficiently dry.

The commenter expressed concern over the requirement of stamp users

to institute the use of grade labeled bags, and the associated costs

that must be passed to the consumer [use of the new stamp and grade

labeled bags is restricted to facilities with in-house fabrication

capability]. The high cost of implementing use of grade labeled bags

was a major concern of other companies, but all are now marketing

competitive priced products. The Agency shares concern about rising

cost burdening consumers; the use of the new stamp will no longer

require a full roller brand, and therefore, one less employment

position in the grading process. This stamp will also significantly

reduce meat branding ink use, and its associated discoloration problems

in processed products. Reduced salaries and benefits, combined with

lessened meat branding usage cost, will offset any cost of grade

labeled bags. The Agency anticipates other cost savings through

undiscovered new operational efficiencies. An additional benefit of

using grade labeled bags is obtained through positive grade identity

through the marketing chain. However, when intact carcasses are

shipped, they will continue to be fully roller branded.

List of Subjects in 7 CFR Part 54

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

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

as follows:

PART 54--MEATS, PREPARED MEATS, AND MEAT PRODUCTS (GRADING,

CERTIFICATION, AND STANDARDS)

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

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

2. In Sec. 54.1, the definition ``Acceptance service'' is removed

and four new definitions are added to read as follows:

Sec. 54.1 Meaning of words.

* * * * *

Certification service. The service established and conducted under

the regulations for the determination and certification or other

identification of the compliance of products with specifications.

* * * * *

Contract verification service. A program allowing institutions or

other

[[Page 11506]]

large purchasers of commodity products to have those products compared

to contractual requirements.

* * * * *

Institutional Meat Purchase Specifications. Specifications

describing various meat cuts, meat products, and meat food products

derived from all livestock species, commonly abbreviated ``IMPS'', and

intended for use by any meat procuring activity. For labeling purposes,

only product certified by the Meat Grading and Certification Branch may

contain the letters ``IMPS'' on the product label.

* * * * *

Quality Systems Certification Program. A multifaceted program

allowing all aspects of the livestock industry to have quality systems,

or processes within quality systems, verified by AMS agent(s) to

effectuate use of such quality systems to meet contractual

requirements, or as a marketing tool.

* * * * *

3. In Sec. 54.4, the words ``Acceptance service'' are removed in

the third sentence and the words ``Certification service'' are added in

their place, and a new sentence is added at the end of the section to

read as follows:

Sec. 54.4 Kind of service.

* * * The Contract Verification Service, under the regulations,

provides wholesale buyers of noncertified commodity products a method

of determining whether procurement(s) meet contractually specified

requirements. The Quality Systems Certification Program, under the

regulations, provides meatpackers, processors, producers, or other

businesses in the livestock and meat trade the ability to have special

processes or documented quality management systems verified.

4. In Sec. 54.14, paragraphs (a) and (b) and figures 1 and 2 are

revised to read as follows:

Sec. 54.14 Official certificates.

(a) Agricultural Products Certificate Form LS-5-3 (Figure 1) is the

official certificate for products under the regulations. The official

grader shall prepare, sign, and issue an Agricultural Products

Certificate Form LS-5-3 covering products for which that grader

determined final specification compliance. Where weight or count is

verified, the grader shall initial in the block titled ``Weights and

Total Count Verified.''

(b) Applicant Charges Certificate Form LS-5-5 (Figure 2) will be

used to reduce paperwork for applicants assigned multiple graders.

Assigned graders will complete one Form LS-5-5. Each grader will enter

their code letters and signature in the appropriate location(s) to

indicate certificate completion.

BILLING CODE 3410-02-P

[[Page 11507]]

[GRAPHIC] [TIFF OMITTED] TR21MR96.005

[[Page 11508]]

[GRAPHIC] [TIFF OMITTED] TR21MR96.006

3410-02-C

[[Page 11509]]

* * * * *

5. Sec. 54.17 is amended by:

(1) revising the text in paragraph (b),

(2) revising paragraph (c),

(3) revising paragraph (d),

(4) revising paragraph (e),

(5) revising paragraph (f),

(6) revising paragraph (g), and

(7) adding new paragraphs (h), (i), (j), and (k) to read as

follows:

Sec. 54.17 Official identifications.

* * * * *

(b) A shield enclosing the letters ``USDA'' as shown in Figure 1

with the appropriate quality grade designation ``Prime,'' ``Choice,''

``Select,'' ``Good,'' ``Standard,'' ``Commercial,'' ``Utility,''

``Cutter,'' ``Canner,'' or ``Cull,'' as provided in the official United

States Standards for Grades of Beef, Veal and Calf, Lamb, Yearling

Mutton, and Mutton Carcasses and accompanied by the class designation

``Bullock,'' ``Veal,'' ``Calf,'' ``Lamb,'' ``Yearling Mutton,'' or

``Mutton,'' constitutes a form of official identification under the

regulations to show the quality grade, and where necessary the class,

undersaid standards, of steer, heifer, and cow beef, veal, calf, lamb,

yearling mutton and mutton. The code identification letters of the

grader performing the service will appear intermittently outside the

shield.

* * * * *

(c) A shield enclosing the letters ``USDA'' and the words ``Yield

Grade,'' as in Figure 1, with the appropriate yield grade designation

``1,'' ``2,'' ``3'', ``4,'' or ``5'' as provided in the Official United

States Standards for Grades of Fresh Beef Carcasses and the Official

United States Standards for Grades of Lamb, Yearling Mutton, and Mutton

Carcasses constitutes a form of official identification under the

regulations to show the yield grade under said standards. When yield

graded, bull and bullock carcasses will be identified with the class

designation ``Bull'' and ``Bullock,'' respectively. The code

identification letters of the grader performing the service will appear

outside the shield.

BILLING CODE 3410-02-M

[GRAPHIC] [TIFF OMITTED] TR21MR96.007

BILLING CODE 3410-02-C

(d) Under the regulations, for carcass grade identification

purposes only, a shield enclosing the letters ``USDA'' with the

appropriate yield grade designation number of ``1,'' ``2,'' ``3,''

``4,'' or ``5'' between the ``US'' and ``DA'', with the appropriate

quality grade designation of ``Prime'', ``Choice,'' or ``Select,''

below both as shown in Figure 1. The code identification letters for

the grader performing the service will appear outside underneath the

shield.

BILLING CODE 3410-02-M

[[Page 11510]]

[GRAPHIC] [TIFF OMITTED] TR21MR96.008

BILLING CODE 3410-02-C

(e) Under the regulations, for yield grade identification purposes

only, a shield enclosing the letters ``US'' on one side and ``DA'' on

the other, with the appropriate Yield Grade designation number ``1,''

``2,'' ``3,'' ``4,'' or ``5'' as shown in Figure 1. The code

identification letters for the grader performing the service will

appear outside underneath the shield.

BILLING CODE 3410-02-M

[GRAPHIC] [TIFF OMITTED] TR21MR96.009

[[Page 11511]]

BILLING CODE 3410-02-C

(f) Under the regulations, for quality grade identification only, a

shield enclosing the letters ``US'' on one side and ``DA'' on the other

with the appropriate Quality Grade designation of ``Prime,''

``Choice,'' or ``Select'' as shown in Figure 1. The code identification

letters for the grader performing the service will appear outside

underneath the shield.

BILLING CODE 3410-02-M

[GRAPHIC] [TIFF OMITTED] TR21MR96.010

BILLING CODE 3410-02-C

(g) The letters ``USDA'' with the appropriate grade designation

``1,'' ``2,'' ``3,'' ``4,'' ``Utility,'' or ``Cull'' enclosed in a

shield as shown in Figure 1, as provided in the Official United States

Standards for Grades of Pork Carcasses, constitutes a form of official

identification under the regulations to show the grade under said

standards of barrow, gilt, and sow pork carcasses.

BILLING CODE 3410-02-M

[GRAPHIC] [TIFF OMITTED] TR21MR96.011

BILLING CODE 3410-02-C

(h) The following constitute forms of official identification under

the regulations to show compliance of products:

BILLING CODE 3410-02-M

[[Page 11512]]

[GRAPHIC] [TIFF OMITTED] TR21MR96.012

BILLING CODE 3410-02-C

Note: The letters ``RWX'', and ``UF'' shown in figures 1, and 2

are examples, respectively, of the code identification letters of

the official grader performing the service.

(i) The following, as shown in Figure 1, constitutes official

identification to show quality system certification:

BILLING CODE 3410-02-M

[[Page 11513]]

[GRAPHIC] [TIFF OMITTED] TR21MR96.013

BILLING CODE 3410-02-C

(j) A shield-shaped ear tag enclosing the letters ``USDA'', the

words ``Carcass Data Service,'' as shown below (Figure 1), and a serial

number constitutes a form of official identification under the

regulations for livestock and carcasses. Other information may appear

on the backside of the ear tag at the option of the purchasers.

BILLING CODE 3410-02-M

[GRAPHIC] [TIFF OMITTED] TR21MR96.014

BILLING CODE 3410-02-C

(k)(1) One device used by USDA graders is a rectangular, serially

numbered, orange tag on which a shield encloses the letters ``USDA''

and the words ``Product Control'' as shown in Figure 1, constitutes a

form of official identification under the regulations for meat and meat

products.

BILLING CODE 3410-02-M

[[Page 11514]]

[GRAPHIC] [TIFF OMITTED] TR21MR96.015

BILLING CODE 3410-02-C

(2) Official graders and supervisors of grading may use ``Product

Control'' tags or other methods and devices as approved by the

Administrator for the identification and control of meat and meat

products which are not in compliance with the regulations or are held

pending the results of an examination. Any such meat or meat product so

identified shall not be used, moved, or altered in any manner; nor

shall official control identification be removed, without the express

permission of an authorized representative of the USDA.

Dated: February 21, 1996.

Lon Hatamiya,

Administrator.

[FR Doc. 96-6645 Filed 3-20-96; 8:45 am]

BILLING CODE 3410-02-M