
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 21USC464]

 
                        TITLE 21--FOOD AND DRUGS
 
           CHAPTER 10--POULTRY AND POULTRY PRODUCTS INSPECTION
 
Sec. 464. Exemptions


(a) Persons exempted

    The Secretary shall, by regulation and under such conditions as to 
sanitary standards, practices, and procedures as he may prescribe, 
exempt from specific provisions of this chapter--
        (1) retail dealers with respect to poultry products sold 
    directly to consumers in individual retail stores, if the only 
    processing operation performed by such retail dealers is the cutting 
    up of poultry products on the premises where such sales to consumers 
    are made;
        (2) for such period of time as the Secretary determines that it 
    would be impracticable to provide inspection and the exemption will 
    aid in the effective administration of this chapter, any person 
    engaged in the processing of poultry or poultry products for 
    commerce and the poultry or poultry products processed by such 
    person: Provided, however, That no such exemption shall continue in 
    effect on and after January 1, 1970; and
        (3) persons slaughtering, processing, or otherwise handling 
    poultry or poultry products which have been or are to be processed 
    as required by recognized religious dietary laws, to the extent that 
    the Secretary determines necessary to avoid conflict with such 
    requirements while still effectuating the purposes of this chapter.

(b) Territorial exemption

    The Secretary may, under such sanitary conditions as he may by 
regulations prescribe, exempt from the inspection requirements of this 
chapter the slaughter of poultry, and the processing of poultry 
products, by any person in any Territory not organized with a 
legislative body, solely for distribution within such Territory, when 
the Secretary determines that it is impracticable to provide such 
inspection within the limits of funds appropriated for administration of 
this chapter and that such exemption will aid in the effective 
administration of this chapter.

(c) Personal slaughtering; custom slaughtering; name and address of the 
        poultry producer or processor in lieu of other labeling 
        requirements; small enterprises; slaughterers or processors of 
        specified number of turkeys; poultry producers raising poultry 
        on own farms

    (1) The Secretary shall, by regulation and under such conditions, 
including sanitary standards, practices, and procedures, as he may 
prescribe, exempt from specific provisions of this chapter--
        (A) the slaughtering by any person of poultry of his own 
    raising, and the processing by him and transportation in commerce of 
    the poultry products exclusively for use by him and members of his 
    household and his nonpaying guests and employees;
        (B) the custom slaughter by any person of poultry delivered by 
    the owner thereof for such slaughter, and the processing by such 
    slaughterer and transportation in commerce of the poultry products 
    exclusively for use, in the household of such owner, by him and 
    members of his household and his nonpaying guests and employees: 
    Provided, That such custom slaughterer does not engage in the 
    business of buying or selling any poultry products capable of use as 
    human food;
        (C) the slaughtering and processing of poultry products in any 
    State or Territory or the District of Columbia by any poultry 
    producer on his own premises with respect to sound and healthy 
    poultry raised on his premises and the distribution by any person 
    solely within such jurisdiction of the poultry products derived from 
    such operations, if, in lieu of other labeling requirements, such 
    poultry products are identified with the name and address of such 
    poultry producer, and if they are not otherwise misbranded, and are 
    sound, clean, and fit for human food when so distributed; and
        (D) the slaughtering of sound and healthy poultry or the 
    processing of poultry products of such poultry in any State or 
    territory or the District of Columbia by any poultry producer or 
    other person for distribution by him solely within such jurisdiction 
    directly to household consumers, restaurants, hotels, and boarding 
    houses, for use in their own dining rooms, or in the preparation of 
    meals for sales direct to consumers, if, in lieu of other labeling 
    requirements, such poultry products are identified with the name and 
    address of the processor, and if they are not otherwise misbranded 
    and are sound, clean, and fit for human food when distributed by 
    such processor.

The exemptions provided for in clauses (C) and (D) above shall not apply 
if the poultry producer or other person engages in the current calendar 
year in the business of buying or selling any poultry or poultry 
products other than as specified in such clauses.
    (2) In addition to the specific exemptions provided herein, the 
Secretary shall, when he determines that the protection of consumers 
from adulterated or misbranded poultry products will not be impaired by 
such action, provide by regulation, consistent with subparagraph (3), 
for the exemption of the operation and products of small enterprises 
(including poultry producers), not exempted under subparagraph (1), 
which are engaged in any State or Territory or the District of Columbia 
in slaughtering and/or cutting up poultry for distribution as carcasses 
or parts thereof solely for distribution within such jurisdiction, from 
such provisions of this chapter as he deems appropriate, while still 
protecting the public from adulterated or misbranded products, under 
such conditions, including sanitary requirements, as he shall prescribe 
to effectuate the purposes of this chapter.
    (3) No exemption under subparagraph (1)(C) or (D) or subparagraph 
(2) shall apply to any poultry producer or other person who, in the 
current calendar year--
        (A) slaughters or processes the products of more than 20,000 
    poultry; or
        (B) slaughters or processes the products of poultry at a 
    facility used for slaughtering or processing of the products of 
    poultry by any other poultry producer or person.

Notwithstanding clause (B), the Secretary may grant such exemption to 
any poultry producer or other person if the Secretary determines, upon 
application of such poultry producer or other person, that granting such 
exemption will not impair effectuating the purposes of this chapter.
    (4) The provisions of this chapter shall not apply to poultry 
producers with respect to poultry of their own raising on their own 
farms if (i) such producers slaughter not more than 1,000 poultry during 
the calendar year for which this exemption is being determined; (ii) 
such poultry producers do not engage in buying or selling poultry 
products other than those produced from poultry raised on their own 
farms; and (iii) none of such poultry moves in commerce (as defined in 
section 453(a) of this title).

(d) Pizzas containing poultry products

    (1) Under such terms and conditions as the Secretary shall prescribe 
through rules and regulations issued under this section that may be 
necessary to ensure food safety and protect public health such as 
special handling procedures, the Secretary shall exempt pizzas 
containing a poultry product from the inspection requirements of this 
chapter if--
        (A) the poultry product components of the pizzas have been 
    prepared, inspected, and passed in a cured or cooked form as ready-
    to-eat in compliance with the requirements of this chapter; and
        (B) the pizzas are to be served in public or private nonprofit 
    institutions.

    (2) The Secretary may withdraw or modify any exemption under this 
subsection whenever the Secretary determines such action is necessary to 
ensure food safety and to protect public health. The Secretary may 
reinstate or further modify any exemption withdrawn or modified under 
this subsection.

(e) Applicability of adulteration and misbranding provisions to articles 
        exempted from inspection

    The adulteration and misbranding provisions of this chapter, other 
than the requirement of the inspection legend, shall apply to articles 
which are exempted from inspection under this section, except as 
otherwise specified under paragraphs (a) and (d).

(f) Suspension or termination of exemption

    The Secretary may by order suspend or terminate any exemption under 
this section with respect to any person whenever he finds that such 
action will aid in effectuating the purposes of this chapter.

(Pub. L. 85-172, Sec. 15, Aug. 28, 1957, 71 Stat. 447; Pub. L. 90-492, 
Sec. 14, Aug. 18, 1968, 82 Stat. 803; Pub. L. 97-206, June 30, 1982, 96 
Stat. 136; Pub. L. 102-237, title X, Sec. 1016(b), Dec. 13, 1991, 105 
Stat. 1903.)


                               Amendments

    1991--Subsecs. (d) to (f). Pub. L. 102-237 added subsec. (d), 
redesignated former subsec. (d) as (e) and substituted ``(d)'' for 
``(c)'', and redesignated former subsec. (e) as (f).
    1982--Par. (c)(3). Pub. L. 97-206, Sec. 1, substituted provisions 
that no exemption would be given to persons who during the current 
calendar year either slaughter or process the products of more than 
20,000 poultry, or slaughter or process such poultry at a facility of 
another poultry producer or person, but that, in the latter case, the 
Secretary may grant the exemption upon application of such poultry 
producer or person if granting such exemption would not impair the 
purposes of this chapter, for provisions that an exemption would not be 
granted to those who slaughter or process the products of more than 
5,000 turkeys or an equivalent number of poultry of all species in the 
current calendar year (four birds of other species being deemed 
equivalent of one turkey).
    Par. (c)(4)(i). Pub. L. 97-206, Sec. 2, substituted ``1,000 poultry 
during the calendar year for which this exemption is being determined'' 
for ``250 turkeys, or not more than an equivalent number of birds of all 
species during the calendar year for which this exemption is being 
determined (four birds of other species being deemed the equivalent of 
one turkey)''.
    1968--Par. (a). Pub. L. 90-492, Sec. 14(a), (b), redesignated 
subpars. (2) to (4) as (1) to (3), respectively, and in subpar. (2), as 
so redesignated, substituted ``January 1, 1970'' for ``July 1, 1960''. 
Former subpar. (1), which exempted poultry producers with respect to 
poultry of their own raising on their own farms which they sold directly 
to household consumers, hotels, etc., for use in their own dining rooms 
or in the preparation of meals for sales direct to consumers only, 
provided that such producers did not engage in buying or selling poultry 
products other than those produced from poultry raised on their own 
farms, was struck out.
    Pars. (b) to (e). Pub. L. 90-492, Sec. 14(c), added pars. (b) to (d) 
and redesignated former par. (b) as (e).


                    Effective Date of 1968 Amendment

    Amendment by Pub. L. 90-492 effective upon the expiration of sixty 
days after Aug. 18, 1968, see section 20(b) of Pub. L. 90-492, set out 
as a note under section 451 of this title.


                               Regulations

    Section 1016(c) of Pub. L. 102-237 provided that: ``No later than 
August 1, 1992, the Secretary of Agriculture shall issue final rules, 
through prior notice and comment rulemaking procedures, to implement the 
exemption authorized by section 23(c) of the Federal Meat Inspection Act 
[21 U.S.C. 623(c)] (as added by subsection (a)) and the exemption 
authorized by section 15(d) of the Poultry Products Inspection Act [21 
U.S.C. 464(d)] (as added by subsection (b)). Prior to the issuance of 
the final rules, the Secretary shall hold at least one public hearing 
examining the public health and food safety issues raised by the 
granting of each of the exemptions.''


Studies Concerning Grant of Future Exemptions for Poultry and Meat Food 
                                Products

    Section 1016(d) of Pub. L. 102-237 directed Secretary of Agriculture 
in consultation with National Academy of Sciences to conduct a study on 
meat food and poultry products inspection exemptions under Federal Meat 
Inspection Act and Poultry Products Inspection Act and a study on an 
exemption from requirements of such Acts for certain wholesale meat 
outlets selling to hotels and other similar institutional users not 
later than 24 months after Dec. 13, 1991, and on completion of each 
study to provide the results to Committee on Agriculture of House of 
Representatives and Committee on Agriculture, Nutrition, and Forestry of 
Senate.

                  Section Referred to in Other Sections

    This section is referred to in section 454 of this title.
