USDA Makes Inspection/Weight Waiver Permanent for Certain Grain Exports
The U.S. Department of Agriculture’s (USDA's) Grain Inspection, Packers and Stockyards Administration (GIPSA) has issued a final rule, effective August 29, 2011, that amends the U.S. Grain Standards Act (USGSA) regulations to make permanent a waiver, which had been due to expire on July 31, 2012, for high quality specialty grain exported in containers from the mandatory inspection and weighing requirements of the USGSA. High quality specialty grain is defined as grain in which all factors exceed the grade limits for U.S. No. 1 grain, except for the factor test weight, or grain designated as ‘‘organic.’’
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Organizations exporting high quality specialty grain will continue to be required to notify GIPSA of their transactions for registration purposes. In addition, nothing in this permanent waiver will prevent buyers and sellers of high quality specialty grain exported in containers from requesting and receiving official inspection and weighing services should they desire such services.
(According to GIPSA, typically shippers of high quality specialty grain exported in containers are small entities that up until recently handled less than 15,000 metric tons of grain annually and were exempt from mandatory inspection and weighing requirements in accordance with 7 CFR 800.18(b). As the high quality specialty grain market has expanded, the volume of this specialty product has begun to exceed the 15,000 metric ton waiver threshold, making such grain subject to mandatory inspection and weighing. GIPSA has found that transactions involving high quality specialty grain typically are made between dedicated buyers and sellers who have ongoing business relationships and fully understand each other’s specific needs and capabilities. GIPSA believes that mandating official inspection and weighing services for this specialty market adds an unnecessary cost.)
(See ITT"s Online Archives or 07/19/10 news, 110710642, for BP summary of GISPA's interim rule which extended the waiver until July 31, 2012.)