United States Department of Agriculture

Agricultural Marketing Service

Federal Grain Inspection Service

Directive 9020.1 February 22, 2013

Distribution: FGIS, OSP, Industry Originating Office: FMD PPMAB-QACD IEB

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EXEMPTIONS AND WAIVERS OF OFFICIAL INSPECTION

AND CLASS X WEIGHING REQUIREMENTS

Contents

EXEMPTIONS AND WAIVERS OF OFFICIAL INSPECTION ������������������������������������������������1

AND CLASS X WEIGHING REQUIREMENTS �����������������������������������������������������������������1

1. PURPOSE����������������������������������������������������������������������������������������������������������������������������

2. REPLACEMENT HIGHLIGHTS��������������������������������������������������������������������������������������������

3. POLICY ��������������������������������������������������������������������������������������������������������������������������������

4. EXEMPTIONS����������������������������������������������������������������������������������������������������������������������

5. WAIVERS�����������������������������������������������������������������������������������������������������������������������������

Attachment 1 ����������������������������������������������������������������������������������������������������������������������������9

Attachment 2 ��������������������������������������������������������������������������������������������������������������������������10
FGIS Directive 9020.1 February 22, 2013

Page 2

1. PURPOSE

This directive establishes procedures for handling exemptions and waivers under the

United States Grain Standards Act (USGSA)

2. REPLACEMENT HIGHLIGHTS

This directive supersedes FGIS Program Directive 9020.1, dated 10-2-06. This directi

is updated to reflect Federal Grain Inspection Service (FGIS) organizational changes 

and makes permanent the exemption for high quality specialty grains exported in 

containers

3. POLICY

The USGSA, as amended, requires that all grain exported from the U. S. be officially

inspected and weighed unless an exemption or waiver of this requirement is in effect

according to the regulations and instructions prescribed by the Administrator of the 

Agricultural Marketing Service (AMS), FGIS

4. EXEMPTIONS

a. 15,000 Metric Ton Exempti

(1) Eligibility. Section 800.18(b)(1) of the regulations under the USGSA exempt

exporters and individual elevator operators from official inspection and 

weighing requirements if they exported less than 15,000 metric tons of grain 

on an individual elevator basis during the preceding calendar year and each 

such facility plans to export less than 15,000 metric tons of grain during the 

current calendar year

(2) Qualifications. A grain elevator, warehouse, or other storage or handling

facility qualifies for a 15,000 metric ton exemption if less than 15,000 metric 

tons of grain are loaded into a final container and exported directly without 

further handling

(a) Grain firms with elevators, warehouses, and storage and handling 

facilities at more than one location may have a 15,000 metric ton 

exemption for each location

(b) In the case of bagged grain, the 15,000 metric ton exemption applies to 

the facility that bags the grain or, in mobile bagging operations, to the 

bagging equipment itself

(c) In the case of a floating rig, the 15,000 metric ton exemption applies to 

the rig regardless of its location
FGIS Directive 9020.1 February 22, 2013

Page 3

(3) Conditions. Exporters and individual elevator operators planning to operate

under the exemption must agree to the following conditions:

(a) Notify USDA, AMS, FGIS, Quality Assurance and Compliance Division

(QACD), Investigations and Enforcement Branch (IEB), in writing each 

calendar year prior to exporting grain of their intention. Notification may 

be faxed, emailed, or sent regular mail. The notice should include the

exporter’s or elevator operator’s name, address, and telephone number; 

if a facility, its name, address, and telephone number; and a statement 

providing the previous year’s export volume and the current calendar 

year’s expected volume for each facility

(b) Keep complete and accurate records of export grain shipments and 

make the records available to FGIS upon request

(c) Have all lots of grain requiring official inspection and/or official weighing 

inspected or weighed according to the USGSA

(4) Approval. When the above qualifications and conditions are met, the 

exemption will automatically apply and approval from FGIS is not required

(5) Termination. All exemptions terminate at the end of the calendar year

(December 31) or when the individual facility’s export volume exceeds 15,000 

metric tons

(6) QACD IEB Responsibility. IEB must

(a) Maintain an exemption listing and periodically request copies of 

exporter’s or elevator operator’s records for review

(b) Inform the field office of the name and address of the exporter or 

elevator operator intending to export under the exemption

(c) Inform the exporter or elevator operator that IEB received the exemption

notification.

(7) Field Office Responsibility. The field office must:

(a) Review the exporter’s or elevator operator’s records for compliance 

periodically

(b) Maintain an awareness of facilities operating under exemptions in the 

field office circuit.

(c) Report to the Director, Quality Assurance and Compliance Division, 

all suspected violations of USGSA exemption provisions according to 

FGIS Directive 9070.6, “Reporting Violations of the U.S. Grain Standar

Act and the Agricultural Marketing Act of 1946.” Suspected violations

may be reported via the FGIS Violations Hotline 1-800-998-FGIS (3447 

toll free) or by FAX to (202) 720-7786
FGIS Directive 9020.1 February 22, 2013

Page 4

b. Grain Exported for Seeding Purposes. Section 800.18(b)(2) of the regulatio

under the USGSA exempts grain exported for seeding purposes from inspection 

and weighing requirements provided that:

(1) The grain is sold or consigned for sale and invoiced as seed;

(2) The grain is identified as seed for seeding purposes on the Shipper’s Export 

Declaration; and

(3) Copies of the sales contract, invoice, bill of lading, and shipping documents 

are available, upon request, by FGIS for review or copying purposes

(4) When the above conditions are met, the exemption will automatically apply

The exporter does not have to notify or obtain approval from FGIS

c. Grain Shipped in Bond. Section 800.18(b)(3) of the regulations under the US

exempts grain shipped in bond from a foreign country through the United States 

from the official inspection and weighing requirements. The shipper does not have 

to notify or obtain approval from FGIS

d. Grain Shipped by Rail or Truck to Canada or Mexico. Section 800.18(b)(4) of 

regulations under the USGSA exempts grain shipped by rail or truck from the 

United States to Canada or Mexico from the official inspection and weighing 

requirements. The exporter does not have to notify or obtain approval from FGI

e. High Quality Specialty Grain Exported in Containers. Section 800.18(b) (8) of 

regulations under the USGSA states that official inspection and weighing 

requirements do not apply to high quality specialty grain exported in containers

High Quality Specialty Grain is defined as grain sold under contract terms that 

specify quality better than the grade limits for U.S. No. 1 grain, except for the fact

test weight, or specify “organic” as defined by 7 CFR Part 205.

(1) Conditions. Exporters and individual elevator operators planning to export

high quality specialty grain in containers under this exemption must agree to 

the following conditions. They must

(a) Keep complete and accurate records of shipments of high quality 

specialty grain exported in containers for a period of 3 years and make 

the records available to FGIS upon request for review or copying 

purposes

(b) Be required to notify FGIS of their actions for registration purposes in 

accordance with the USGSA

Nothing in this exemption will prevent buyers and sellers from requesting and 

receiving official inspection and weighing services should they desire such 

services
FGIS Directive 9020.1 February 22, 2013

Page 5

(2) IEB Responsibility. IEB must

(a) Maintain an exemption listing and periodically request copies of 

exporter’s or elevator operator’s records for review

(b) Inform the field office of the name and address of the exporter or 

elevator operator intending to export under the exemption

(3) Field Office Responsibility. The field office must:

(a) Periodically review the exporter’s or elevator operator’s records for 

compliance with USGSA requirements

(b) Maintain an awareness of facilities operating under exemptions in the 

field office circuit.

(c) Report to the Director, Quality Assurance and Compliance Division, 

all suspected violations of USGSA exemption provisions according to 

FGIS Directive 9070.6, “Reporting Violations of the U.S. Grain Standar

Act and the Agricultural Marketing Act of 1946.” Suspected violations

may be reported via the FGIS Violations Hotline 1-800-998-FGIS (3447 

toll free) or by FAX to (202) 690-2755

5. WAIVERS

a. Grain Not Sold by Grade. Section 800.18(b)(5) of the regulations under t

USGSA waives the mandatory requirement for official inspection provided the 

following conditions are met:

(1) Conditions for Waiver

(a) The export grain shipment is not sold, offered, or consigned for sale by 

grade or subclass. Section 800.55 of the regulations states “An official 

grade designation contains any of the following: The term “U.S.,” th

numerals 1 through 5, the term “Sample grade,” or the name of a 

subclass or a special grade of grain specified in the Official United 

States Standards for Grain.

(b) The contract makes no reference to a factor analysis; e.g., minimum te

weight, moisture, foreign material, protein analysis, etc., to be performed

by official or nonofficial personnel (see attachment 1).

(c) The parties mutually agree in the contract that the shipment is not to be 

officially inspected or sold by grade.

(d) An English written “copy” of the sales contract, or pertinent sections, is 

furnished to the appropriate field office before the loading of the grain. 

The contract must be signed by both buyer and seller (or agent) and the 

names, titles, and addresses of all signatories included
FGIS Directive 9020.1 February 22, 2013

Page 6

(e) Container marking or other sales-related documents must not describe 

grain by grade or condition

This waiver does not apply to the official weighing requirements.

(2) Requesting Party’s Responsibility. The requesting party must submit Form

FGIS-941, “Request for Waiver of Inspection,” with a copy of the contract 

or pertinent sections of the contract whereby the parties (buyer and seller) 

mutually agree that official inspection is not required because the grain 

shipment is not sold, offered, or consigned for sale by grade, grade factors, or 

subclass. A statement to this effect must be included in the contract. Copies of 

form FGIS-941 may be obtained from the area field office manager.

(3) Field Office Manager’s Responsibility. If the above conditions are met and

all required documents are supplied, the field office manager approves the 

official inspection waiver and sends copies of the documentation to the Office 

of the Director, FMD. When the request is denied, the field office manager 

forwards copies of all documentation showing the reason for denial to the 

Office of the Director, FMD, for information and brings attention to any 

unusual conditions or documentation

b. Services Not Available. Section 800.18(b)(6) of the regulations under the US

waives the official inspection or weighing requirements when FGIS determines 

that official personnel will not be available within a 24-hour period to perform 

the needed services. This determination will be made after the field office, in 

coordination with the Office of the Director, FMD, has made an effort to furnish the 

service

(1) Conditions for the Waiver

(a) FGIS determines that official personnel will not be available within a 

24-hour period to perform the needed services

(b) The buyer and seller of the grain are notified that the grain will not be 

officially inspected or weighed.

(2) Procedures for Approving the Waiver

(a) When a required official service cannot be provided within 24 hours, the 

field office manager will inform the applicant that she/he may wait until 

FGIS personnel are available or that the applicant may request a waiver 

from the official inspection and weighing requirements.

(b) A request may be verbal but must be confirmed in writing.

(c) Upon receipt of a request, the field office manager will approve or deny 

the waiver and inform the applicant
FGIS Directive 9020.1 February 22, 2013

Page 7

(d) The field office manager will send copies of correspondence regarding 

the waiver to the Office of the Director, FMD.

c. Emergency Waiver. Section 800.18(b)(7) of the regulations under the US

provides the Administrator with the authority to waive the official inspection and 

weighing requirements if an emergency or other condition exists that precludes 

the official inspection or weighing of the grain and that granting a waiver would not 

impair the objectives of the USGSA

The following procedures will be used for emergency waivers:

(1) An exporter or elevator operator may telephone an emergency waiver request 

to the Office of the Director, FMD. The request must be confirmed in writing. 

Field offices or agencies will refer requests to the Office of the Director, FMD. 

The Director’s Office will provide all available information to the Administrator.

(2) The Administrator will approve or deny the waiver and, if approved, specify 

conditions to the waiver

(3) The Office of the Director, FMD, will transmit the Administrator’s decision 

to the field office manager and exporter or elevator operator via telephone 

and provide written confirmation (via Fax or regular mail). FMD will maintain 

copies of all correspondence

d. Waivers of Regulations. Section 800.2 of the regulations under the USG

provides that the Administrator may, in specific cases, waive for limited periods any 

provision of the regulations to permit experimentation or testing of new procedures, 

equipment, or handling techniques to facilitate improvement, provided that the 

waiver conform with the objectives of the Act. The Administrator may delegate this

authority to other appropriate FGIS officers or employees.

(1) Reasonably Continuous Operation (88-Hour). Section 800.86(c)(1) of th

regulations under the USGSA requires loading in a “reasonably continuous 

operation.” Reasonably continuous operation is defined as a loading or 

unloading operation in one specific location which does not include inactive 

intervals in excess of 88 consecutive hours. Field office managers are 

delegated the authority to waive the requirement when requested by the 

applicant, provided that granting this waiver will not result in the issuance of 

an erroneous inspection or weight certificate.

Field office managers should use their familiarity with the facility in question 

and their evaluation of the circumstances surrounding the request for 

extension to determine whether to grant the request. Maintain all requests for

waivers with the other work records concerning the lot

(2) Stowage Examination Waivers. Section 800.75(f)(2) of the regulation

under the USGSA and FGIS instructions require stowage examinations of 

carriers when export and domestic grain shipments are officially sampled 
FGIS Directive 9020.1 February 22, 2013

Page 8

and inspected, or weighed, at the time of loading. However, due to trade

requests and safety considerations, FGIS established the following stowage 

examination waiver requirements for all domestic shipments

(a) Applicants for inspection and all interested persons must submit written 

statements attesting that a stowage exam is not needed and why it is not 

needed

(b) Official certificates must show the statement “Stowage area not 

examined.

(3) Other Regulations. The Administrator is authorized to waive other regulations. 

For other waivers of regulations, the following procedures are used:

(a) Requests will be made to the Office of the Director, FMD.

(b) The Office of the Director will present the request with all available 

information to the Administrator

(c) The Administrator will approve or deny the waiver and, if approved, 

specify conditions of the waiver

(d) The Office of the Director will transmit the Administrator’s decision and 

maintain a file of all pertinent correspondence regarding the waiver.

Attachments
FGIS Directive 9020.1 February 22, 2013

Page 9

Attachment 1

REQUESTS FOR WAIVER OF INSPECTION

DESCRIPTIONS ON CONTRACTS

ACCEPTABLE NOT ACCEPTABLE

Class or Kind Grade, Special Grade, Subclass, or

 indications of a factor analysis

EXAMPLES

Wheat Dark Northern Spring Wheat

Hard Red Spring Wheat Hard Amber Durum Wheat

Hard or Soft White Wheat U.S. No. 2 C

Yellow Corn U.S. No. 3 Yellow Soybe

Sorghum Six-Rowed Malting Barley

Brown or Yellow Sorghum

Seller to provide Aflatoxin Requirements for: Moisture,

Certificate Foreign Material, Protein,

 Minimum Test Weight, etc
FGIS Directive 9020.1 February 22, 2013

Page 10

Attachment 2