[Federal Register: April 15, 2005 (Volume 70, Number 72)]
[Page 19920]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



Food Safety and Inspection Service

[Docket No. 05-010N]

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 
new dollar limitations on the amount of meat and meat food products and 
poultry products that a retail store can sell to hotels, restaurants, 
and similar institutions without disqualifying itself for exemption 
from Federal inspection requirements. By reason of FSIS' regulations, 
for calendar year 2005 the dollar limitation for meat and meat food 
products has been increased from $53,600 to $54,500 and for poultry 
products from $43,600 to $45,800. FSIS is increasing the dollar 
limitations from calendar year 2004 based on price changes for these 
products evidenced by the Consumer Price Index.

DATES: Effective Date: This notice is effective April 15, 2005.

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 the types of operations 
traditionally and usually conducted at retail stores and restaurants, 
when those operations are 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 2004 reveals an average annual price increase for meat 
and meat food products of 1.6 percent and an annual average price 
increase for poultry products of 5.1 percent. When rounded off to the 
nearest $100.00, the price increase for meat and meat food products is 
$900 and the price increase for poultry products is $2,200. 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 $54,500 for meat and meat food products and to 
$45,800 for poultry products for calendar year 2005.

Additional Public Notification

    Public awareness of all segments of rulemaking and policy 
development is important. Consequently, in an effort to ensure that the 
public and in particular minorities, women, and persons with 
disabilities, are aware of this notice, FSIS will announce it on-line 
through the FSIS Web page located at http://www.fsis.usda.gov/regulations/2005_Notices_Index/

    FSIS also will 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 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 who have requested to 
be included. The update also is available on the FSIS Web page. Through 
Listserv and the Web page, FSIS is able to provide information to a 
much broader and more diverse audience.
    In addition, FSIS offers an e-mail subscription service which 
provides an automatic and customized notification when popular pages 
are updated, including Federal Register publications and related 
documents. This service is available at http://www.fsis.usda.gov/news_and_events/email_subscription/
 and allows FSIS customers to sign up 

for subscription options across eight categories. Options range from 
recalls to export information to regulations, directives and notices. 
Customers can add or delete subscriptions themselves and have the 
option to password protect their account.

    Done at Washington, DC, on: April 11, 2005.

Barbara Masters,
Acting Administrator.
[FR Doc. 05-7555 Filed 4-14-05; 8:45 am]