PART 996—MINIMUM QUALITY AND HANDLING STANDARDS FOR DOMESTIC AND IMPORTED PEANUTS MARKETED IN THE UNITED STATES Authority: 7 U.S.C. 7958. Source: 67 FR 57140, Sept. 9, 2002, unless otherwise noted. Definitions § 996.1 Act and scope. Act § 996.2 Conditional release. Conditional release [68 FR 1157, Jan. 9, 2003] § 996.3 Crop year. Crop year [81 FR 50287, Aug. 1, 2016] § 996.4 Handle. Handle Provided, And provided further, § 996.5 Handler. Handler § 996.6 Importation. Importation § 996.7 Importer. Importer [68 FR 1157, Jan. 9, 2003] § 996.8 Incoming inspection. Incoming inspection § 996.9 Inshell peanuts. Inshell peanuts [81 FR 50288, Aug. 1, 2016] § 996.10 Inspection Service. Inspection Service [81 FR 50288, Aug. 1, 2016] § 996.11 Negative aflatoxin content. Negative aflatoxin content § 996.12 Outgoing inspection. Outgoing inspection [81 FR 50288, Aug. 1, 2016] § 996.13 Peanuts. Peanuts Arachis hypogaea (a) Farmers Stock. (b) Segregation 1. Aspergillus flavus (c) Segregation 2. Aspergillus flavus (d) Segregation 3. Aspergillus flavus. [67 FR 57140, Sept. 9, 2002, as amended at 81 FR 50288, Aug. 1, 2016; 82 FR 48758, Oct. 20, 2017] § 996.14 Person. Person § 996.15 Positive lot identification. Positive lot identification [81 FR 50288, Aug. 1, 2016] § 996.16 Producer. Producer § 996.17 [Reserved] § 996.18 Secretary. Secretary § 996.19 Shelled peanuts. Shelled peanuts [81 FR 50288, Aug. 1, 2016] § 996.20 USDA. USDA § 996.21 USDA laboratory. USDA laboratory § 996.22 USDA-approved laboratory. USDA-approved laboratory Quality and Handling Standards § 996.30 Incoming quality standards. (a) All farmers stock peanuts received or acquired by a handler shall be officially inspected by the Inspection Service, and certified as to segregation, moisture content, and foreign material. (b) Moisture. Provided, [67 FR 57140, Sept. 9, 2002, as amended at 68 FR 1157, Jan. 9, 2003; 70 FR 44046, Aug. 1, 2005; 81 FR 50288, Aug. 1, 2016] § 996.31 Outgoing quality standards. (a) Shelled peanuts: Minimum Quality Standards—Peanuts for Human Consumption [Whole kernels and splits: Maximum limitations] Type and grade category Unshelled peanuts and damaged Total fall through sound whole kernels and/or sound split and broken kernels Foreign Moisture Excluding Lots of “splits” Runner 3.50 6.00%; 17/64 inch round screen .20 9.00 Virginia (except No. 2) 3.50 6.00%; 17/64 inch round screen .20 9.00 Spanish and Valencia 3.50 6.00%; 16/64 inch round screen .20 9.00 No. 2 Virginia 3.50 6.00%; 17/64 inch round screen .20 9.00 Runner with splits (not more than 15% sound splits) 3.50 6.00%; 17/64 inch round screen .20 9.00 Virginia with splits (not more than 15% sound splits) 3.50 6.00%; 17/64 inch round screen .20 9.00 Spanish and Valencia with splits (not more than 15% sound splits) 3.50 6.00%; 16/64 inch round screen .20 9.00 Lots of “splits” Runner (not less than 90% splits) 3.50 6.00%; 17/64 inch round screen .20 9.00 Virginia (not less than 90% splits) 3.50 6.00%; 17/64 inch round screen .20 9.00 Spanish and Valencia (not less than 90% splits) 3.50 6.00%; 16/64 inch round screen .20 9.00 (b) Cleaned-inshell peanuts: (1) Not more than l.00 percent kernels with mold unless a sample of such peanuts, drawn by an inspector of the Inspection Service, is analyzed chemically by a USDA laboratory or a USDA-approved laboratory and certified “negative” as to aflatoxin; (2) Not more than 3.50 percent peanuts with damaged or defective kernels; (3) Not more than 10.00 percent moisture; or (4) Not more than 0.50 percent foreign material. [67 FR 57140, Sept. 9, 2002; 67 FR 63503, Oct. 11, 2002, as amended at 68 FR 46924, Aug. 7, 2003; 68 FR 53490, Sept. 11, 2003; 81 FR 50288, Aug. 1, 2016] § 996.40 Handling standards. (a) Identification: (b) Sampling and testing shelled peanuts for outgoing Inspection: (1) Each handler or importer shall cause appropriate samples, based on a sampling plan approved by the Inspection Service, of each lot of shelled peanuts intended for human consumption to be drawn by the Inspection Service. The gross amount of peanuts drawn shall be large enough to provide for a grade analysis, for a grading check-sample, and for three 48-pound samples for aflatoxin chemical analysis. The three 48-pound samples shall be designated by the Inspection Service as “Sample 1,” “Sample 2,” and “Sample 3” and each sample shall be placed in a suitable container and positive lot identified by means acceptable to the Inspection Service. Sample 1 may be prepared for immediate testing or Sample 1, Sample 2, and Sample 3 may be returned to the handler or importer for testing at a later date. Imported peanuts shall be labeled “Sample 1IMP,” “Sample 2IMP,” and “Sample 3IMP” and handled accordingly. (2) Before shipment of a lot of shelled peanuts to a buyer, the handler or importer shall cause Sample 1 to be ground by the Inspection Service, a USDA laboratory or a USDA-approved laboratory, in a “subsampling mill.” The resultant ground subsample from Sample 1 shall be of a size specified by the Inspection Service and shall be designated as “Subsample 1-AB” and at the handler's, importer's or buyer's option, a second subsample may also be extracted from Sample 1. It shall be designated as “Subsample 1-CD.” Subsample 1-CD may be sent as requested by the handler or buyer, for aflatoxin assay, to a USDA laboratory or USDA-approved laboratory that can provide analyses results on such samples in 36 hours. The cost of sampling and testing Subsample 1-CD shall be for the account of the applicant. Subsample 1-AB shall be analyzed only in a USDA laboratory or USDA-approved laboratory. Both Subsamples 1-AB and 1-CD shall be accompanied by a notice of sampling or grade certificate, signed by the inspector, containing, at least, identifying information as to the handler or importer, and the positive lot identification of the shelled peanuts. (3) The samples designated as Sample 2 and Sample 3 shall be held as aflatoxin check-samples by the Inspection Service or the handler or importer and shall not be included in the shipment to the buyer until the analyses results from Sample 1 are known. (4) Upon call from the laboratory, the handler or importer shall cause Sample 2 to be ground by the Inspection Service, USDA or USDA-approved laboratory in a “subsampling mill.” The resultant ground subsample from Sample 2 shall be of a size specified by the Inspection Service and it shall be designated as “Subsample 2-AB.” Upon call from the laboratory, the handler shall cause Sample 3 to be ground by the Inspection Service, USDA or USDA-approved laboratory in a “subsampling mill.” The resultant ground subsample from Sample 3 shall be of a size specified by Inspection Service and shall be designated as “Subsample 3-AB.” “Subsamples 2-AB and 3-AB” shall be analyzed only in a USDA laboratory or a USDA-approved laboratory and each shall be accompanied by a notice of sampling. The results of each assay shall be reported by the laboratory to the handler and to USDA. (5) Handlers and importers may make arrangements for required inspection and certification by contacting the Inspection Service office closest to where the peanuts will be made available for sampling. For questions regarding inspection services, a list of Federal or Federal-State Inspection Service offices, or for further assistance, handlers and importers may contact: Specialty Crops Inspection Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW., Room 1536-S, (STOP 0240), Washington, DC, 20250-0240; Telephone: (202) 720-5870; Fax: (202) 720-0393. (6) Handlers and importers may make arrangements for required chemical analysis for aflatoxin content at the nearest USDA or USDA-approved laboratory. For further information concerning chemical analysis and a list of laboratories authorized to conduct such analysis contact: Science and Technology Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0270, Washington, DC 20250-0270; Telephone (202) 690-0621; Fax (202) 720-4631. (c) Appeal inspections. [67 FR 57140, Sept. 9, 2002, as amended at 68 FR 1157, Jan. 9, 2003; 68 FR 46924, Aug. 7, 2003; 81 FR 50289, Aug. 1, 2016] § 996.50 Reconditioning failing quality peanuts. (a) Lots of peanuts which have not been certified as meeting the requirements for disposition to human consumption outlets may be disposed for non-human consumption uses: Provided, (b)(1) Sheller oil stock residuals shall be positive lot identified using red tags, identified using a traceability system as defined in § 996.73, or other methods acceptable to the Inspection Service, and may be disposed of domestically or to the export market in bulk or bags or other suitable containers. Disposition to crushing may be to approved crushers. However, sheller oil stock residuals may be moved from a handler's facility to another facility owned by the same handler or another handler without PLI so long as such handler maintains a satisfactory records system for traceability purposes as defined in § 996.73. (2) If such peanuts are not tested and certified as to aflatoxin content, pursuant to paragraph (a) of this section, the handler or importer shall cause the following statement to be shown on the shipping papers: “The peanuts covered by this bill of lading (or invoice, etc.) are limited to crushing only and may contain aflatoxin.” (c) Remilling. (d) Blanching. (e) Lots of shelled peanuts moved for remilling or blanching shall be positive lot identified and accompanied by valid grade inspection certificate, Except Except (f) Residual peanuts resulting from remilling or blanching of peanuts shall be red tagged, identified using a traceability system as defined in § 996.73, or identified by other means acceptable to the Inspection Service, and returned directly to the handler for further disposition or, in the alternative, such residual peanuts shall be positive lot identified by the Inspection Service and shall be disposed of to handlers who are crushers, or to approved crushers, Except (g) Re-inspection. (h) The cost of transportation, sampling, inspection, certification, chemical analysis, and identification, as well as remilling and blanching, and further inspection of remilled and blanched lots, and disposition of failing peanuts, shall be borne by the applicant. Whenever peanuts are presented for inspection, the handler or importer shall furnish any labor and pay any costs incurred in moving, opening containers, and shipping samples as may be necessary for proper sampling and inspection. The Inspection Service shall bill the applicant or other responsible entity separately for applicable fees covering sampling and inspection, delivering aflatoxin samples to laboratories, positive lot identification measures, and other certifications as may be necessary to certify edible quality or non-edible disposition. The USDA and USDA-approved laboratories shall bill the applicant or other responsible entity separately for applicable fees for aflatoxin assays. [67 FR 57140, Sept. 9, 2002, as amended at 68 FR 46924, Aug. 7, 2003] § 996.60 Safeguard procedures for imported peanuts. (a) Prior to arrival of a foreign-produced peanut lot at a port-of-entry, the importer, or customs broker acting on behalf of the importer, shall submit information electronically to the United States Customs and Border Protection, which includes the following: The Customs Service entry number; the container number(s) or other identification of the lot(s); the volume of the peanuts in each lot being entered; the inland shipment destination where the lot will be made available for inspection; and a contact name or telephone number at the destination. (b) Additional standards. (2) Imported peanut lots sampled and inspected at the port-of-entry, or at other locations, shall meet the quality standards of this part in effect on the date of inspection. (3) A foreign-produced peanut lot entered for consumption or for warehouse may be transferred or sold to another person: Provided, And provided further, (4) The provisions of this section do not supersede any restrictions or prohibitions on peanuts under the Federal Plant Quarantine Act of 1912, the Federal Food, Drug and Cosmetic Act, any other applicable laws, or regulations of other Federal agencies, including import regulations and procedures of the Customs Service. [67 FR 57140, Sept. 9, 2002, as amended at 68 FR 1158, Jan. 9, 2003; 81 FR 50289, Aug. 1, 2016] Reports and Records § 996.71 Reports and recordkeeping. (a) Each handler and importer shall maintain a satisfactory records system for traceability purposes as defined in § 996.73. (b) USDA shall maintain copies of grade and aflatoxin certificates on all peanut lots inspected and chemically tested. USDA and USDA-approved laboratories shall file copies of all aflatoxin certificates completed by such laboratories with the Southeast Region Branch, Market Development Division, Specialty Crops Program, AMS, USDA, 1124 1st Street South, Winter Haven, Florida 33880; Telephone (863) 324-3375, Fax: (863) 291-8614, or other address as determined by USDA. [67 FR 57140, Sept. 9, 2002, as amended at 81 FR 50289, Aug. 1, 2016; 88 FR 82236, Nov. 24, 2023] § 996.72 Confidential information. All reports and records furnished or submitted by handlers and importers to USDA which include data or information constituting a trade secret or disclosing a trade position, financial condition, or business operations of the particular handlers or their customers shall be received by, and at all times kept in the custody and control of one or more employees of USDA, and, except as provided in § 996.74 or otherwise provided by law, such information shall not be disclosed to any person outside USDA. § 996.73 Verification of reports. (a) For the purpose of checking and verifying reports kept by handlers and importers and the operation of handlers and importers under the provisions of this Part, the officers, employees or duly authorized agents of USDA shall have access to any premises where peanuts may be held at any time during reasonable business hours and shall be permitted to inspect any peanuts that meet outgoing quality regulations, so held by such handler or importer and any and all records of such handler with respect to the acquisition, holding, or disposition of all peanuts meeting outgoing quality regulations, which may be held or which may have been disposed by handler. (b) Reports shall be maintained by the handler for nonconforming products to assure traceability throughout the supply chain. The traceability system must include documented records, which enable a full product history to be produced in a timely manner and must ensure product can be traced forward (raw material to distribution) and backwards from distribution to the warehouse feeding the shelling plant, and ensure that all associated tests and all relevant records have been completed. The traceability system shall include identification of all raw materials, process parameters (for specific lot), packaging and final disposition. The handler shall be able to identify the warehouse in which the peanuts were stored immediately prior to shelling. Traceability must be maintained throughout production runs with specific lot codes, and there shall be complete linkage from raw material receipt through final disposition. [81 FR 50290, Aug. 1, 2016] § 996.74 Compliance. (a) A handler or importer shall be subject to withdrawal of inspection services, for a period of time to be determined by USDA, if the handler or importer: (1) Fails to obtain outgoing inspection on shelled or cleaned-inshell peanuts, pursuant to § 996.31, and ships such peanuts for human consumption use; (2) Ships failing quality peanuts, pursuant to § 996.31, for human consumption use; (3) Commingles failing quality peanuts with certified edible quality peanuts and ships the commingled lot for human consumption use without meeting outgoing quality regulations; (4) Fails to maintain positive lot identification, pursuant to § 996.40(a), on peanut lots certified for human consumption use; (5) Fails to maintain and provide access to records, pursuant to § 996.71, and the standards for traceability and nonconforming product disposition pursuant to § 996.73, on the reconditioning or disposition of peanuts acquired by such handler or importer; and on lots that meet outgoing quality standards; or (6) Otherwise violates any provision of section 1308 of the Act or any provision of this part. (b) Any peanut lot shipped which fails to meet the outgoing quality standards specified in § 996.31, and is not reconditioned to meet such standards, or is not disposed to non-human consumption outlets as specified in § 996.50, shall be reported by USDA to the Food and Drug Administration and listed on an Agricultural Marketing Service Web site. [67 FR 57140, Sept. 9, 2002, as amended at 81 FR 50290, Aug. 1, 2016] § 996.75 Effective time. The provisions of this part, as well as any amendments, shall apply to current crop year peanuts, subsequent crop year peanuts, and prior crop year peanuts not yet inspected, or failing peanut lots that have not met disposition standards, and shall continue in force and effect until modified, suspended, or terminated. [81 FR 50290, Aug. 1, 2016]