by the Administrator (a) whenever the applicant fails to meet the requirements of the regulations prescribing the conditions under which the service is made available; (b) whenever the product is owned by or located on the premises of a person currently denied the benefits of the act; (c) where any individual holding office or a responsible position with or having a substantial financial interest or share in the applicant is currently denied the benefits of the act or was responsible in whole or in part for the current denial of the benefits of the act to any person; (d) where the Administrator determines that the application is an attempt on the part of a person currently denied the benefits of the act to obtain grading or inspection service; (e) whenever the applicant, after an initial survey has been made in accordance with § 55.23 (a), fails to bring the plant, facilities, and operating procedures into compliance with the regulations within a reasonable period of time; (f) notwithstanding any prior approval whenever, before inauguration of service, the applicant fails to fulfill commitments concerning the inauguration of the service; (g) when it appears that to perform the services specified in this part would not be to the best interests of the public welfare or of the Government; or (h) when it appears to the Administrator that prior commitments of the Department necessitate rejection of the application. Each such applicant shall be promptly notified by registered mail of the reasons for the rejection. A written petition for reconsideration of such rejection may be filed by the applicant with the Administrator if postmarked or delivered within 10 days after receipt of notice of the rejection. Such petition shall state specifically the errors alleged to have been made by the Administrator in rejecting the application. Within 20 days following the receipt of such a petition for reconsideration, the Administrator shall approve the application or notify the applicant by registered mail of the reasons for the rejection thereof. [24 F.R. 6413, Aug. 11, 1959; as amended at 31 F.R. 14983, Nov. 29, 1966]

§ 55.25 When application may be withdrawn.

An application for grading service may be withdrawn by the applicant at any time before the service is performed upon payment, by the applicant, of all expenses

incurred by the Service in connection with such application.

[20 F.R. 1867, Mar. 29, 1956]

§ 55.26 Order of service.

Grading and inspection service shall be performed, insofar as practicable, in the order in which applications therefor are made except that precedence may be given to any application for an appeal grading or appeal inspection. The Service shall not be liable in damages accruing through acts of commission or omission in the administration of this part. [20 F.R. 1867, Mar. 29, 1955]

§ 55.27 Suspension of plant approval.

(a) Any plant approval pursuant to the regulations in this part may be suspended for (1) failure to maintain plant and equipment in a satisfactory state of repairs; (2) the use of operating procedures which are not in accordance with the regulations in this part; or (3) alterations of buildings, facilities, or equipment which cannot be approved in accordance with the regulations in this part.

(b) During such period of suspension, inspection service shall not be rendered. However, the other provisions of the regulations pertaining to providing service on a resident basis will remain in effect unles service is terminated in accordance with the terms thereof. If the plant facilities or methods of operation are not brought into compliance within a reasonable period of time to be specified by the Administrator, the application and service shall be terminated. Upon termination of inspection service in an official plant pursuant to the regulations, the plant approval shall also become terminated and all labels, seals, tags or packaging material bearing official identification shall, under the supervision of a person designated by the Service, either be destroyed, or the official identification completely obliterated, or sealed in a manner acceptable to the Service.

[20 F.R. 1867, Mar. 29, 1955, as amended at 21 F.R. 2028, Mar. 31, 1956]

The rules of practice governing withdrawal of inspection and grading services set forth in Part 50 of this chapter shall be applicable to such a debarment action:

(1) Misrepresentation, deceptive, or fraudulent act or practice. Any wilful misrepresentation or any deceptive or fraudulent act or practice found to be made or committed by any person in connection with:

(i) The making or filing of an application for any grading service, inspection service, appeal, or regrading service;

(ii) The making of the product accessible for sampling, grading or inspection;

(iii) The making, issuing or using or attempting to issue or use any grading certificate, inspection certificate, symbol, stamp, label, seal, or identification authorized pursuant to the regulations in this part;

(iv) The use of the terms "United States," "U.S.," "Government Graded," "Federal-State Graded," "U.S. Inspected," "Government inspected," or terms of similar import in the labeling or advertising of any product;

(v) The use of any official stamp, symbol, label, seal, or identification in the labeling or advertising of any product.

(2) Use of facsimile forms. Using or attempting to use a form which simulates in whole or in part any certificate, symbol, stamp, label, seal or identification authorized to be issued or used under the regulations in this part.

(3) Willful violation of the regulations. Any willful violation of the regulations in this part or the act.

(4) Interfering with a grader, inspector, or employee of the Service. Any interference with or obstruction or any attempted interference or obstruction of or assault upon any grader, licensee, inspector or employee of the Service in the performance of his duties. The giving or offering, directly or indirectly, of any money, loan, gift, or anything of value to an employee of the Service or the making or offering of any contribution to or in any way supplementing the salary, compensation or expenses of an employee of the Service or the offering or entering into a private contract or agreement with an employee of the Service for any serv

ices to be rendered while employed by the Service.

(5) Miscellaneous. The existence of any of the conditions set forth in § 55.24 constituting the basis for the rejection of an application for grading or inspection service.

[20 F.R. 9894, Dec. 23, 1955, as amended at 22 F.R. 8165, Oct. 16, 1957; 26 F.R. 3952, May 6, 1961; 31 F.R. 16516, Dec. 28, 1966; 34 F.R. 20037, Dec. 23, 1969]

§ 55.31 Other applicable regulations.

Compliance with the regulations in this part shall not excuse failure to comply with any other Federal or any State or municipal applicable laws or regulations.

[20 F.R. 1868, Mar. 29, 1955]

§ 55.32 Report of violations.

Each grader and inspector shall report, in the manner prescribed by the Administrator, all violations and noncompliance under the Act and this part of which such grader or inspector has knowledge.

[31 F.R. 14983, Nov. 29, 1966] § 55.33

Reuse of containers bearing official identification prohibited.

The reuse, by any person, of containers bearing official identification is prohibited unless such identification is applicable in all respects to product being packed therein. In such instances, the container and label may be used provided the packaging is accomplished under the supervision of an inspector or grader and the container is in compliance with § 55.77 (k).

[31 F.R. 14984, Nov. 29, 1966]

IDENTIFYING AND MARKING PRODUCTS § 55.35 Approval of official identification.

(a) Any label, container or packaging material which bears any official identification shall be used only in such manner as the Administrator may prescribe. No label, container, or packaging material bearing official identification may be used unless finished copies or samples thereof have been approved by the Administrator. No label, container, or packaging material bearing official identification shall be printed or prepared for use until the printer's or other final proof has been approved by the Administrator.

No label, container, or packaging material which bears official identification shall bear any statement that is false or misleading. If the label is printed on or otherwise applied directly to the container or packaging material, the principal display panel thereof shall be considered as the label.

(b) Containers of product bearing official identification shall display the following information:

(1) The common or usual name, if any there be, and if the product is comprised of two or more ingredients, such ingredients shall be listed in the order of descending proportions;

(2) The name and address of the packer or distributor. When the distributor is shown, it shall be qualified by such terms as "packed for," "distributed by," or "distributors";

(3) The lot number or production code number;

(4) The net contents;

(5) Official identification and plant number;

(6) Egg products which are produced in an official plant from edible shell eggs of other than current production or from other egg products produced from shell eggs of other than current production, shall 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";

(7) Egg products produced from edible shell eggs of the turkey, duck, goose, or guinea, or from other egg products which were produced from edible shell eggs of the turkey, duck, goose or guinea shall be clearly and distinctly labeled as to the common or usual name of the product indicating the type of eggs or egg products used in the product, e.g., "Frozen whole turkey eggs." Egg products labeled without qualifying words as to type of shell egg used in the products shall be produced only from the edible shell egg of the domesticated chicken.

(c) Liquid or frozen egg products identified as whole eggs and prepared other than in natural proportions, as so broken from the shell, shall have a total egg solids content of 24.70 percent or greater.

[34 F.R. 20037, Dec. 23, 1969]

§ 55.36 Form of official identification symbol and inspection mark.

(a) The shield set forth in Figure 1 shall be the official identification symbol for purposes of this part and when used, imitated, or simulated in any manner in connection with a product shall be deemed to constitute a representation that the product has been officially inspected for the purposes of § 55.2a.

(b) The inspection marks which are permitted to be used on egg products shall be contained within the outline of a shield and with the wording and design set forth in either Figure 2 or 3 of this section, except the plant number may be omitted from the official identification if applied elsewhere on the container.

USDA

INSPECTED

EGG PRODUCTS PLANT 42

FIGURE 3

[24 F.R. 6413, Aug. 11, 1959, as amended at 34 F.R. 20037, Dec. 23, 1969]

§ 55.37 Products that may bear the inspection mark.

Egg products which are permitted to bear the inspection mark shall be processed in an official plant from edible shell eggs or other edible egg products eligible to bear the inspection mark and may contain other edible ingredients. The official mark, when used, shall be printed or lithographed and applied as a part of the principal display panel of the container, but shall not be applied to a detachable cover.

[34 F.R. 20037, Dec. 23, 1969]

§ 55.38 Use of other official identification.

All nonpasteurized egg products shipped from an official plant in packaged form shall be marked with the identification set forth in figure 4 of § 55.39. Such mark shall be printed or lithographed and applied as a part of the principal display panel, but shall not be applied to a detachable cover. Such products shall meet all requirements for egg products which are permitted to bear the official inspection mark shown in § 55.36, except for pasteurization, heat treatment, or other such methods of treatment approved by the Administrator. Such products shall not be released into consumptive channels until they have been subjected to pasteurization, heat treatment, or other approved methods of treatment in an official plant. After such pasteurization or treatment, the product may bear the official inspection mark as shown in § 55.36. [34 F.R. 20037, Dec. 23, 1969]

§ 55.39 Form of other identification.

Egg products prepared in accordance with § 55.38 shall be marked with the identification of the wording and design set forth in Figure 4, except that the plant number may be omitted from the identification if applied elsewhere on the container.

NON-PASTEURIZED
EGG PRODUCTS

FOR FURTHER PROCESSING IN AN OFFICIAL USDA PLANT

PLANT NO. 42

FIGURE 4

[34 F.R. 20037, Dec. 23, 1969]

§ 55.40 Processing turkey, duck, goose, or guinea eggs.

Edible turkey, duck, goose, or guinea eggs may be processed in the official plant and may be identified with the official mark shown in § 55.36. Such egg products shall be labeled as required in § 55.35.

[34 F.R. 20038, Dec. 23, 1969]

§ 55.41 Processing ova.

(a) Ova from slaughtered birds may be brought into the official plant for processing: Provided, That the ova is from poultry inspected in a plant operating under the Poultry Products Inspection Act, as amended: And provided further, That the containers of such ova are properly labeled and bear official identification.

(b) The ova shall be handled, processed, cooled, and pasteurized in the same manner as liquid, frozen, or dried egg yolk.

(c) Labeling and identification for all ova product or egg product containing ova shall be approved by the Administrator prior to use.

[34 F.R. 20038, Dec. 23, 1969] § 55.42

Unauthorized use or disposition of approved labels.

(a) Containers or labels which bear an official identification approved for use pursuant to § 55.35 shall be used only for the purpose for which approved and shall not otherwise be disposed of from the plant for which approved except with written approval of the Administrator. Any unauthorized use or disposition of approved containers or labels which bear

any official identification may result in cancellation of the approval and denial of the use of containers or labels bearing official identification or denial of the benefits of the act pursuant to the provisions of § 55.30; (b) the use of simulations or imitations of any official identification by any person is prohibited; (c) once a year, or more often, if requested, each applicant shall submit to the Administrator a list in triplicate of approved labels which bear any official identification that have become obsolete, accompanied with a statement that such approvals are no longer desired. The approvals shall be identified by the date of approval and the name of the product; (d) upon termination of inspection service in an official plant pursuant to the regulations, all labels, seals, tags, or packaging material bearing official identification shall, under the supervision of a person designated by the Service, either be destroyed, or the official identification completely obliterated, or sealed in a manner acceptable to the Service.

[22 F.R. 8167, Oct. 16, 1957, as amended at 26 F.R. 3953, May 6, 1961]

§ 55.43 Supervision of marking and packaging.

(a) Evidence of label approval. No grader or inspector shall authorize the use of official identification on any inspected product unless he has on file evidence that such official identification or packaging material bearing such official identification has been approved in accordance with the provisions of § 55.35.

(b) Affixing of official identification. No official identification may be affixed to or placed on or caused to be affixed to or placed on any product or container thereof except by a grader or inspector or under the supervision of a grader or inspector or other person authorized by the Administrator. All such products shall have been inspected in accordance with the regulations in this part. The grader or inspector shall have supervision over the use and handling of all material bearing any official identification.

(c) Labels for products sold under Government contract. The grader or inspector in charge may approve labels for -containers of product sold under a contract specification to governmental agencies when such product is not offered for resale to the general public: Provided, That the contract specifications include complete specific require

ments with respect to labeling, and are made available to the grader or inspector in charge.

[20 FR. 1869, Mar. 29, 1955, as amended at 27 F.R. 8581, Aug. 28, 1962]

§ 55.44 Accessibility of product.

Each product for which grading service or inspection service is requested shall be so placed as to disclose fully its class, quality, quantity, and condition as the circumstances may warrant.

[20 F.R. 1869, Mar. 29, 1955]

§ 55.45 Grading certificates.

Grading certificates (including appeal grading certificates) shall be issued on forms approved by the Administrator. [31 F.R. 14984, Nov. 29, 1966]

§ 55.46 Grading certificate issuance.

Each grader shall, in person or by his authorized agent as provided in this section, issue a grading certificate covering each product graded by him except that with respect to products graded on a resident grading basis, certificates will be issued only upon a request therefor by the applicant or the Service. No grader or inspector, or the authorized agent of such grader or inspector shall sign any certificate covering any product not graded or inspected by such grader or inspector, respectively. A grader's name may be signed on a grading certificate by a person ther than the grader, if such person has been designated as the authorized agent of such grader by the National Supervisor: Provided, That the certificate is prepared from an official memorandum of grading signed by the grader: And provided further, That a notarized power of attorney authorizing such signature has been issued to such person by the grader and is on file in the office of grading.

[27 FR. 7481, July 31, 1962]

§ 55.47 Disposition of grading certifi

cates.

The original and a copy of each grading certificate, issued pursuant to § 55.46, and not to exceed two additional copies thereof if requested by the applicant prior to issuance, shall, immediately upon issuance be delivered or mailed to the applicant or person designated by him. One copy shall be filed in the office of grading serving the area in which the grading service was performed, and all other copies shall be filed in such manner as the Administrator may approve. Ad