Agricultural Marketing Service, Specialty Crops Program, Specialty Crops Inspection Division

Reporting Out-of-Grade Lots Under Marketing Orders at Shipping Point (March 2017)

SCI Division Inspection Series

Page 1 of 2

REPORTING OUT-OF-GRADE LOTS UNDER MARKETING ORDERS AT SHIPPING 

POINT

This document establishes certification and notification procedures when an inspection prior to 

shipment from the production area reveals apparent non-compliance with the quality 

requirements of Federal marketing orders. Federal marketing orders which have quality 

requirements established under their regulations generally require that a Federal or Federal-State 

inspection be performed showing that the lot meets the requirements of the order prior to 

shipment. Whenever subsequent inspections are requested prior to shipment, for whatever 

reason, the policy of the Specialty Crops Inspection (SCI) Division is that the most recent 

inspection is the controlling factor and will nullify the results of any previous inspection 

regardless of results.

If upon a second inspection, any lot is found to fail the requirements of the order, the inspector

will inform the applicant that the lot fails marketing order requirements and that shipment of 

such lot would be a violation of the order.

Certification

When a lot has been inspected and found to fail to meet the requirements of a marketing order, it 

will not be necessary to issue a “fails to meet” certificate if the non-conforming lot is re-graded, 

dumped from its packaging for re-grading, or otherwise brought into compliance with the order 

in the presence of an inspector. This means that the lot must be either dumped or re-graded 

before the inspector leaves the packing facility for the day, or the non-conforming lot must be 

positively marked or otherwise identified and counted by the inspector prior to leaving for the 

day (for bulk bins note the count and estimated weight of contents). Identified out-of-grade lots 

may be re-graded or dumped in the presence of an inspector on a subsequent day. Unless at least 

one of these two conditions is met, the inspector, in all cases, must write a certificate indicating 

that the lot(s) failed to meet the requirements of the order.
SCI Division Inspection Series Reporting Out-of-Grade Lots Under

Marketing Orders at Shipping Point

Effective Date: March 2017 Page 2 of 2

Reporting

Whenever a “fails to meet” certificate is written, or any apparent marketing order violations are 

noticed by the inspector, a letter describing the apparent violation and/or a copy of the “fails to 

meet” certificate are to be sent to the manager of the appropriate marketing order administrative 

committee with additional copies sent to the nearest Marketing Field Office of the Marketing 

Order and Agreement Division.

Additionally, if such out-of-grade lots involve apparent misbranding and are subsequently 

shipped without correction, the Misbranding Unit of the PACA Branch in Washington, DC, is to 

be notified and sent copies of the certificates and related correspondence.

These instructions do not address marketing order problems found during terminal market 

inspections, which will continue to be handled on a case-by-case basis when encountered.

“SCI moving forward in the 21st Century using technology, innovation, and old fashioned hard work”

Non-Discrimination Policy: In accordance with Federal civil rights law and U.S. Department 

of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and 

employees, and institutions participating in or administering USDA programs are prohibited 

from discriminating based on race, color, national origin, religion, sex, gender identity (including 

gender expression), sexual orientation, disability, age, marital status, family/parental status, 

income derived from a public assistance program, political beliefs, or reprisal or retaliation for 

prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases 

apply to all programs). Remedies and complaint filing deadlines vary by program or incident. 

Persons with disabilities who require alternative means of communication for program 

information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact 

the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or 

contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program 

information may be made available in languages other than English. 

To file a program discrimination complaint, complete the USDA Program Discrimination 

Complaint Form, AD-3027, found online at 

http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter 

addressed to USDA and provide in the letter all of the information requested in the form. To 

request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter 

to USDA by: (1) mail: U.S. Department of Agriculture, Office of the Assistant Secretary for 

Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; (2) fax: (202) 

690-7442; or (3) email: program.intake@usda.gov. USDA is an equal opportunity provider, 

employer, and lender.