[Federal Register: April 30, 2004 (Volume 69, Number 84)]
[Page 23722-23723]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



Food Safety and Inspection Service

[Docket No. 04-011N]

Exemption for Retail Store Operations

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Notice of adjusted dollar limitations.


SUMMARY: The Food Safety and Inspection Service (FSIS) is announcing 
the new dollar limitations on the amount of sales of meat and meat food 
products and poultry products to hotels, restaurants, and similar 
institutions that do not disqualify a retail store for exemption from 
Federal inspection requirements. By reason of FSIS' regulations, for 
calendar year 2004 the dollar limitation for meat and meat food 
products has been increased from $47,000 to $53,600 and for poultry 
products from $41,600 to $43,600. FSIS is increasing the dollar 
limitations from calendar year 2003 based on price changes for these 
products evidenced by the Consumer Price Index.

EFFECTIVE DATE: This notice is effective April 30, 2004.

FOR FURTHER INFORMATION CONTACT: John O'Connell, Directives and 
Economic Analysis Staff, Office of Policy, Program, and Employee 
Development, FSIS, U.S. Department of Agriculture, Room 112, Cotton 
Annex Building, 300 12th Street, SW., Washington, DC 20250-3700; 
telephone (202) 720-0345, fax (202) 690-0486.



    The Federal Meat Inspection Act (21 U.S.C. 601 et seq.) and the 
Poultry Products Inspection Act (21 U.S.C. 451 et seq.) provide that 
the statutory provisions requiring inspection of the slaughter of 
livestock or poultry, and the preparation or processing of meat and 
meat food and poultry products, do not apply to operations of types 
traditionally and usually conducted at retail stores and restaurants, 
when conducted at any retail store or restaurant or similar retail-type 
establishment for sale in normal retail quantities (21 U.S.C. 454(c)(2) 
and 661 (c)(2)). In title 9 of the Code of Federal Regulations, 
Sec. Sec.  303.1(d) and 381.10(d), FSIS regulations address the 
conditions under which requirements for inspection do not apply to 
retail operations involving the preparation or processing of meat or 
poultry products.
    Under these regulations, sales to hotels, restaurants, and similar 
institutions disqualify a store for exemption if they exceed either of 
two maximum limits: 25 percent of the dollar value of total product 
sales or the calendar year dollar limitation set by the Administrator. 
The dollar limitation is adjusted automatically during the first 
quarter of the year if the Consumer Price Index (CPI), published by the 
Bureau of Labor Statistics, indicates an increase or decrease of more 
than $500 in the price of the same volume of product for the previous 
year. FSIS publishes a notice of the adjusted dollar limitations in the 
Federal Register. (See paragraphs (d)(2)(iii)(b) and (d)(2)(iii)(b) of 
Sec. Sec.  303.1 and 381.10.)
    The CPI for 2003 reveals an average annual price increase for meat 
and meat food products of 14 percent and an annual average price 
increase for poultry products of 4.7 percent. When rounded off to the 
nearest $100.00, the price increase for meat and meat food products is 
$6,600 and the price increase for poultry products is $2,000. Because 
the price of meat and meat food products and the price of poultry 
products have increased by more than $500, in accordance with 
Sec. Sec.  303.1 (d)(2)(iii)(b) and 381.10 (d)(2)(iii)(b) of the 
regulations, FSIS is increasing the dollar limitation on sales to 
hotels, restaurants, and similar institutions to $53,600 for meat and 
meat food products and at $43,600 for poultry products for calendar 
year 2004.

Additional Public Notification

    Public awareness of all segments of rulemaking and policy 
development is important. Consequently, in an effort to better ensure 
that the public, and in particular that minorities, women, and persons 
with disabilities are aware of this notice, FSIS will announce it 
online through the FSIS Web page located at http://www.fsis.usda.gov.

    FSIS will also make copies of this Federal Register publication 
available through the FSIS Constituent Update, which is used to provide 
information regarding FSIS policies, procedures, regulations, Federal 
Register notices, FSIS public meetings, recalls, and any other types of 
information that could affect or would be of interest to our 
constituents and stakeholders. The update is communicated via Listserv, 
a free e-mail subscription service consisting of industry, trade, and 
farm groups, consumer interest groups, allied health professionals, 
scientific professionals, and other individuals that have requested to 
be included. The update is also available on the FSIS Web page. Through 
the Listserv and the Web page, FSIS is able to provide information to a 
much broader, more diverse audience.
    For more information contact the Congressional and Public Affairs 
Office at (202) 720-9113. To be added to the free e-mail subscription 
service (Listserv) go to the Constituent Update'' page on the Internet 
at http://www.fsis.usda.gov/oa/update/update.htm. Click on the 

``Subscribe to

[[Page 23723]]

the Constituent Update Listserv'' link, then fill out and submit the 

    Done in Washington, DC, on April 27, 2004.
Barbara Masters,
Acting Administrator.
[FR Doc. 04-9831 Filed 4-29-04; 8:45 am]