§ 53.7 Survey and recognition of nonfederally inspected establishments; withdrawal of recognition.

(a) Conditions of recognition. Recognition will be given by the Chief for the purposes of § 53.5 to a nonfederally inspected establishment only if it is operated in accordance with the applicable requirements of § 53.6(a) under a meat inspection system recognized under § 53.6 and is otherwise eligible for recognition. A survey will be made to determine the eligibility for recognition under the regulations of any nonfederally inspected establishment preparing products for which an application for service is made.

(b) Withdrawal or recognition. (1) The Chief may at any time, without hearing, withdraw his recognition of any nonfederally inspected establishment when he finds that the operator of the establishment or any other person conducting slaughtering, processing, or fabricating operations at the establishment has failed to comply with the applicable requirements under § 53.6. Recognition will not be restored to such establishment until it has been demonstrated for at least 30 days after application is made for reinstatement of the recognition of such establishment that the establishment is being operated in accordance with the applicable requirements under § 53.6. For each subsequent withdrawal of recognition under this subparagraph, the minimum period of withholding of recognition shall be the same as the prior period of withholding, plus an additional 30 days.

(2) The Chief may at any time, without hearing, withdraw his recognition of any nonfederally inspected establishment when he finds that, for a period of 60 consecutive days, no request has been made for service for products prepared at such establishment.

When

(c) Resurvey requirements. ever recognition of an establishment is terminated or withdrawn under § 53.6 or this section, or service at a recognized establishment is denied or withdrawn under § 53.13(a), a resurvey of the establishment under paragraph (a) of this section may be required before restoration of recognition or service.

§ 53.8 How to obtain service.

(a) Application. Any person may apply to the Director or Chief for service under the regulations with respect to livestock or products in which the appli

cant is financially interested. The application shall be made on a form approved by the Director, and if the service is intended to be furnished with respect to products processed or fabricated, or derived from animals slaughtered at a nonfederally inspected establishment in the United States, the application shall also include such other form as is approved by the Director for purposes of determining the eligibility of such establishment for recognition under § 53.7. If such nonfederally inspected establishment is not operated by the applicant for service, the application shall be approved by the operator and he shall thereby be deemed to request recognition for his establishment and to agree to pay for surveys made, in accordance with § 53.29 (e), if the applicant does not pay therefor. In any case in which the service is intended to be furnished at an establishment not operated by the applicant, the application shall be approved by the operator of such establishment and such approval shall constitute an authorization for the entry of the establishment by any employees of the Department for the purpose of performing their functions under the regulations. The application shall state: (1) The name and address of the establishment at which service is desired; (2) the name and post office address of the applicant; (3) the financial interest of the applicant in the livestock or products, except where application is made by an official of a government agency in his official capacity; (4) the signature of the applicant (or the signature and title of his representative); and (5) such other information as may be required by the Director or Chief to determine the eligibility of the applicant for service. The application shall indicate the legal status of the applicant as an individual, partnership, corporation, or other form of legal entity. Any change in such status at any time while service is being received shall be promptly reported to the Director or Chief by the person receiving the service.

(b) Notice of eligibility for service. The applicant for service at any establishment will be notified whether his application is approved.

(c) Request by applicant for service(1) Noncommitment. Upon notification of the approval of an application for service, the applicant may, from time to time as desired, make oral or written

requests for service under the regulations with respect to specific livestock or products for which the service is to be furnished under such application. Such requests shall be made at an office of grading either directly or through any employee of the Consumer and Marketing Service who may be designated for such purpose.

(2) Commitment. If desired, the applicant may enter into an agreement with the Consumer and Marketing Service for the furnishing of service on a weekly commitment basis, whereby the applicant agrees to pay for 40 hours of service per week as provided in § 53.29 (b) and the Consumer and Marketing Service agrees to make an official grader available to perform such service for the applicant. However, the Consumer and Marketing Service reserves the right to use any grader assigned to a plant under such a commitment to perform service for other applicants when in the opinion of the Chief he is not needed to perform service for the applicant.

[24 F.R. 5280, June 30, 1959, as amended at 30 F.R. 4157, Mar. 31, 1965]

§ 53.9 Order of furnishing service.

Service under the regulations shall be furnished to applicants in the order in which requests therefor are received, insofar as consistent with good management, efficiency and economy. Precedence will be given, when necessary, to requests made by any government agency or any regular user of the service, and to requests for appeal service under § 53.22.

§ 53.10 When request for service deemed made.

A request for service under the regulations shall be deemed to be made when received by an office of grading. Records showing the date and time of the request shall be made and kept in such office.

§ 53.11 Withdrawal of application or request for service.

An application or a request for service under the regulations may be withdrawn by the applicant at any time before the application is approved or prior to performance of service, upon payment, in accordance with §§ 53.29 and 53.30, of any expenses already incurred by the Consumer and Marketing Service in connection therewith.

§ 53.12 Authority of agent.

Proof of the authority of any person making an application or a request for service under the regulations on behalf of any other person may be required at the discretion of the Director or Chief or the official in charge of the office of grading or other employee receiving the application or request under § 53.8.

[24 F.R. 5280, June 30, 1959, as amended at 30 F.R. 4157, Mar. 31, 1965]

§ 53.13 Denial or withdrawal of service.

(a) For misconduct—(1) Bases for denial or withdrawal. An application or a request for service may be rejected, or the benefits of the service may be otherwise denied to, or withdrawn from, any person who, or whose employee or agent in the scope of his employment or agency, (i) has wilfully made any misrepresentation or has committed any other fraudulent or deceptive practice in connection with any application or request for service under the regulations; (ii) has given or attempted to give, as a loan or for any other purpose, any money, favor, or other thing of value, to any employee of the Department authorized to perform any function under the regulations; (iii) has interfered with or obstructed, or attempted to interfere with or to obstruct, any employee of the Department in the performance of his duties under the regulations by intimidation, threats, assaults, abuse, or any other improper means; (iv) has knowingly falsely made, issued, altered, forged, or counterfeited any official certificate, memorandum, mark, or other identification, or device for making any such mark or identification; (v) has knowingly uttered, published, or used as true any such falsely made, issued, altered, forged, or counterfeited certificate, memorandum, mark, identification, or device; (vi) has knowingly obtained or retained possession of any such falsely made, issued, altered, forged, or counterfeited certificate,

memorandum, mark, identification, or device, or of any such official device, or of any product bearing any such falsely made, issued, altered, forged, or counterfeited mark or identification, or of any carcass or wholesale or retail cut bearing any designation specified in subdivision (vii) of this subparagraph which has not been federally graded or derived from a carcass graded as being of the indicated grade; (vii) has applied the designation "Prime," "Choice," "Good,"

"Standard," "Commercial,"

"Utility," "Cutter," "Canner," "Cull," "Medium," "No. 1," "No. 2," or "No. 3" by stamp or brand directly on any carcass or wholesale or retail cut of any carcass, as part of a grade designation or otherwise; or (viii) has in any manner not specified in this paragraph violated subsection 203 (h) of the Act: Provided, That subdivision (vi) of this subparagraph shall not be deemed to be violated if the person in possession of any item mentioned therein notifies the Director or Chief without delay that he has possession of such item and, in the case of an official device, surrenders it to the Chief, and, in the case of any other item, surrenders it to the Director or Chief or destroys it or brings it into compliance with the regulations by obliterating or removing the violative features under supervision of the Director or Chief: And provided, further, That subdivisions (ii) through (vii) of this subparagraph shall not be deemed to be violated by any act committed by any person prior to the making of an application for service under the regulations by the principal person to whom service would be denied in any case. An application or a request for service may be rejected, or the benefits of the service may be otherwise denied to, or withdrawn from, any person who operates an establishment for which he has made application for service if, with the knowledge of such operator, any other person conducting any operations in such establishment has committed any of the offenses specified in subdivisions (i) through (viii) of this subparagraph after such application was made. Moreover, an application or a request for service made in the name of a person otherwise eligible for service under the regulations may be rejected, or the benefits of the serviec may be otherwise denied to, or withdrawn from, such a person (a) in case the service is or would be performed at an establishment operated (1) by a corporation, partnership, or other person from whom the benefits of the service are currently being withheld under this paragraph, or (2) by a corporation, partnership, or other person having an officer, director, partner, or substantial investor from whom the benefits of the service are currently being withheld and who has any authority with respect to the establishment where service is or would be performed, or (b) in case the service is or would be performed with respect to any livestock

or product in which any corporation, partnership, or other person within (a) (1) of this subdivision has a contract or other financial interest.

(2) Procedure. All cases arising under this paragraph shall be reported to the Director, for informal settlement of the controversy if possible. If the efforts at informal settlement are not successful, ! the matter shall be reported to the Administrator who will make the final determination as to the action to be taken, after opportunity for hearing before a proper official in the Department is accorded the persons involved. The final order denying or withdrawing the benefits of the service under the regulations may also deny or withdraw any or all other benefits under the Act and similar voluntary inspection services provided by the Department under other authorities. In any case under this paragraph, the official in charge of the appropriate office of grading may, with the concurrence of the Director or Chief, deny or withdraw service under the regulations, without hearing, pending efforts at informal settlement and final determination in accordance with this paragraph. Notice of any denial or withdrawal of service under this paragraph, and the reasons therefor, shall promptly be given to the persons involved.

An

(b) For miscellaneous reasons. application or a request for service may be rejected, or the benefits of the service may be otherwise denied to, or withdrawn from, any person, without a hearing, by the official in charge of the appropriate office of grading, with the concurrence of the Director or Chief (1) for administrative reasons such as the nonavailability of personnel to perform the service; (2) for the failure to pay for service; (3) in case the application or request relates to livestock or products which are not eligible for service under § 53.5, or which are unclean or are in an unclean establishment; (4) for other noncompliance with the conditions on which service is available as provided in the regulations, except matters covered by paragraph (a) of this section; or (5) in case the person is a partnership, corporation, or other person from whom the benefits of the service are currently being withheld under paragraph (a) of this section. Notice of such denial or withdrawal, and the reasons therefor, shall promptly be given to the person involved.

(c) Filing of records. The final orders in formal proceedings under paragraph (a) of this section to deny or withdraw the service under the regulations (except orders required for good cause to be held confidential and not cited as precedents) and other records in such proceedings (except those required for good cause to be held confidential) shall be filed with the Hearing Clerk and shall be available for inspection by persons having a proper interest therein.

[24 F.R. 5280, June 30, 1959, as amended at 30 F.R. 4157, Mar. 31, 1965]

§ 53.14 Financial interest of official grader.

No official grader shall grade or determine compliance of any livestock or products in which he or any of his relatives by blood or marriage is directly or indirectly financially interested.

24 F.R. 5280, June 30, 1959, as amended at 30 FR. 4157, Mar. 31, 1965]

$53.15 Accessibility and refrigeration

of products; access to establishments. (a) The applicant shall cause livestock or products, with respect to which service is requested, to be made easily accessible for examination and to be so placed, with adequate illuminating facilities, as to disclose their class, grade, other quality, and compliance. Supervisors of grading and other employees of the Department

responsible for maintaining uniformity and accuracy of service under the regulations shall have access to all parts of establishments covered by approved applications for service under the regulations, for the purpose of examining all livestock or products in the establishments which have been or are to be graded or examined for compliance with specifications or which bear any marks of grade or compliance.

(b) Grading service will be furnished for meat in carcass form or wholesale cuts only if properly chilled. Determination of class, grade, or other quality of carcass meat or wholesale cuts of meat under the standards in Subpart B of this part will not be made if such carcass meat or wholesale cuts are in a frozen state.

[24 F.R. 5280, June 30, 1959, as amended at 30 F.R. 4157, Mar. 31, 1965]

§ 53.16 Official certificates.

(a) Required; exception. The official grader shall prepare, sign, and issue official certificates covering products graded by him, or for which he has determined compliance, unless through special arrangements approved by the Director or Chief this is not required, in which case complete records of the service shall be furnished the office of grading.

(b) Form. (1) The following constitutes a form of official certificate for products under the regulations: