UNITED STATES DEPARTMENT OF AGRICULTURE 


BEFORE THE ADMINISTRATOR 


FOOD SAFETY AND INSPECTION SERVICE 


In re: 

Mufid Sawaid, and 

El Badia Halal Live Poultry, Inc. 

Respondents 

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STIPULATION AND 

CONSENT AGREEMENT 

The Food Safety Inspection Service (FSIS), U.S. Department ofAgriculture (USDA), 

hereinafter "Complainant," commenced this administrative action on or about November 20, 

2015, when FSIS personnel hand delivered a Notice ofIneligibility for custom exempt and 

small enterprise Status (NOI) to Mr. Mu:fid Sawaid and El Badia Halal Live Poultry, Inc., 

hereinafter "Respondents," notifying them that they were no longer eligible for custom 

exempt and small enterprise under the Federal Meat Inspection Act (FMIA) (21 U.S.C. § 

601 et seq.), the Poultry Products Inspection Act (PPIA) (21 U.S.C. § 451 et seq.), and the 

regulations promulgated thereunder, due to Respondents' alleged failure to maintain their 

facility in a sanitary manner. The NOi, which was effective upon receipt, was issued in 

accordance with Section 23(c)(2) ofthe FMIA (21 U.S.C. § 623(c)(2)), Section 15(f) ofthe 

PPIA (21 U.S.C. 464(f)), and Parts 303 and 381 ofthe Federal Meat and Poultry Inspection 

Regulations (9 C.F.R. §§ 303.1, and 381.10). 

The Parties have agreed that this administrative proceeding should be terminated by 

entry ofthis Consent Agreement, hereinafter "Agreement," set forth below and have agreed 

to the following stipulations: 

1. For the purpose ofsettling this proceeding and for such purpose only, Respondents 

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admit the jurisdictional allegations ofthe above-mentioned NOI and both parties waive: 

(a) any further procedural steps in this proceeding; 

(b) any requirement that this Agreement contain findings and conclusions with 

respect to fact or law, as well as to reason or basis thereof; and 

(c) all rights to seek further judicial review or to otherwise challenge or contest the 

validity ofthis Agreement. 

2. This Agreement is for settlement purposes in this proceeding only, and does not 

otherwise constitute an admission or denial by Respondents that they have violated any 

Federal regulation or statute. 

3. Respondents waive any action against USDA under the Equal Access to Justice Act 

of 1980 (5 U.S.C. 504 et seq.) for fees or other expenses incurred in connection with this 

proceeding, and any other action against USDA and its employees in connection with this 

proceeding and the facts and events that gave rise to this proceeding. 

FINDINGS OFFACT 

1. El Badia Halal Live Poultry, Inc., at all times material herein, operated as a custom 

exempt and small enterprise facility at 4113 2"d Avenue, Brooklyn, New York 11232. 

2. Mr. Mufid Sawaid is now, and at all times material herein was, the owner and 

operator ofEl Badia Halal Live Poultry, Inc. 

3. El Badia Halal Live Poultry, Inc., and Mr. Mufid Sawaid, operated under the custom 

exempt and small enterprise eligibility, pursuant to Section 23(a) ofthe FMIA (21 U.S.C. § 

623(a)), Section 15(c) ofthe PPIA (21 U.S.C. § 464(c)), and applicable federal meat and 

poultry regulations (9 C.F.R. §§ 303.1 and 381.10). 

4. In an NOI letter delivered on November 20, 2015, Respondents were notified that 

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they were no longer eligible to operate under the custom exempt and small enterprise 

provisions ofthe FMIA and PPIA because of alleged violations of sanitation, facility, and 

other regulations, as required by 9 C.F.R. §§ 303.1, 381.10, and 416. 

CONCLUSION 

In as much as the parties have agreed to the provisions set forth in the following 

Agreement in disposition ofthis proceeding, this Agreement will be entered. 

AGREEMENT 

Custom exempt livestock slaughter and meat processing privileges as provided under 

section 23 of the FMIA (21 U.S.C. §623) and 9 C.F.R. Part 303.1, and poultry exempt 

privileges as provided under section 15 ofthe Poultry Products Inspection Act (PPIA) (21 

U.S.C. § 464) and 9 C.F.R. Part 381.10, are terminated from El Badia Halal Live Poultry, 

Inc., and its owners, officers, directors, partners, successors, affiliates, or assigns, directly or 

through any corporate device, for a period ofthree (3) years. This termination of exemption 

privileges shall be held in abeyance and exemption privileges shall be provided to 

Respondents, pursuant to Section 23 (a) ofthe FMIA, Section 15 (c) ofthe PPIA, and 9 

C.F.R. Parts 303.1, 381.10, and 416, provided all statutory and regulatory requirements and 

the additional conditions set forth in this Agreement are met. 

CONDITIONS 

1. Upon resumption of operations under this Agreement, El Badia Halal Live Poultry, 

Inc. will operate as a custom exempt (meat) and retail store exempt (poultry) facility. For 

the duration ofthis Agreement, any change to El Badia Halal Live Poultry, Inc.'s exempt 

status will require notification to FSIS and must be done in accordance with statutory and 

regulatory requirements. 

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2. Prior to the resumption of operations under this Agreement, and subject to verification 

and a satifactory determination by FSIS, Respondents shall demonstrate compliance with 

the PSIS statutory and regulatory requirements including, but not limited to, 9 C.F .R. Parts 

303.1 , 381.10, and 416. FSIS will base their determination of satisfaction upon a review and 

examination of: (a) Respondents' written operational procedures and other programs and (b) 

the physical and sanitary conditions ofRespondent's facility. 

3. Prior to the resumption of operations under this Agreement, and subject to verification 

by PSIS, Respondents shall address and repair any premises, facility and/or equipment 

issues identified by FSIS at the time ofthe facility review conducted pursuant to paragraph 

2 of this Agreement. 

4. Prior to the resumption of operations under this Agreement, and subject to verification 

by FSIS, Respondents' facility shall receive an "acceptable" rating in every category of 

FSIS' "Exempt Establishment Review Report," PSIS Form 5930-1. 

Sanitation Performance Standards (SPS) 

5. Prior to the resumption of operations under this Agreement, and subject to verification 

by FSIS, Respondents shall: 

(a) develop written procedures for monitoring and identifying non-compliance 

issues, taking corrective and preventive actions, and maintaining proper record.keeping, 

which Respondents will implement, conduct, and maintain in order to operate and 

maintain their premises, facilities, equipment, and outside premises in a manner 

sufficient to prevent the creation ofinsanitary conditions and practices; 

(b) comply with the requirements ofthe Sanitation Performance Standards (SPS) 

regulations (9 C.F.R. Parts 416.1to416.6); 

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(c) ensure that meat, meat food products, poultry, and poultry products, that are 

prepared, packed, and stored on their premises are not contaminated or adulterated; and 

(d) address and repair non-compliance issues previously identified by FSIS with 

respect to the premises, facility, and/or equipment. 

6. Upon the resumption of operations under this Agreement, and subject to verification 

by FSIS, Respondents shall comply with the requirements ofthe SPS regulations (9 C.F.R. 

416.1to416.6). 

Sanitation Standard Operating Procedures (SSOP) 

7. Prior to the resumption ofoperations under this Agreement, and subject to verification 

by FSIS, Respondents shall develop written Sanitation Standard Operating Procedures 

(SSOP) to describe the monitoring activities, record keeping, and other procedures that 

Respondents will implement, conduct, and maintain on a daily and on-going basis, before, 

during and after operations, in accordance with 9 C.F.R. Parts 416.11 to 416.16, to ensure 

sanitary conditions and prevent product adulteration. 

8. Upon the resumption ofoperations under this Agreement, and subject to verification 

ofFSIS, Respondents shall: 

(a) implement, conduct, and maintain on a daily and on-going basis their SSOP 

system in accordance with 9 C.F.R. § 416 to ensure sanitary conditions and prevent 

product adulteration; and 

(b) implement, conduct, and maintain corrective and preventative actions, in 


accordance with 9 C.F.R. § 416.15. 


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Planned Improvement Program (PIP) 

9. Prior to the resumption of operations under this Agreement, and subject to verification 

by FSIS, Respondents shall develop a written Planned Improvement Program (PIP) 

designed to identify and correct non-compliance and to ensure that the entire structure ofthe 

facility, including its rooms and compartments, is of sound construction and that all 

equipment is maintained in proper working order and kept in good repair. 

10. Upon the resumption of operations under this Agreement, and subject to verification 

by FSIS, Respondents shall implement, conduct, and maintain their PIP as required in this 

Agreement, and document any findings of, and corrective actions taken to address, needed 

structural and/or mechanical repairs and/or improvements to their facility and make these 

records available to FSIS for review and/or copying upon request. 

Pest Management Program 

11 . Prior to the resumption of operations under this Agreement, and subject to 

verification by FSIS, Respondents shall develop a written pest management program, to be 

implemented and maintained by Respondents, to prevent the harborage and breeding of 

pests within the facility and on its grounds consistent with 9 C.F.R. § 416.2 (a) and (b) to 

ensure that: 

(a) Respondents review and service the facility and grounds at least daily for any 

signs ofrodent and insect presence and activity; and 

(b) Respondents provide written reports detailing their findings, corrective actions 

and recommendations based on their review and service ofthe facility and grounds for 

any signs of rodent and insect presence and activity. 

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12. Upon the resumption of operations under this Agreement, and subject to verification 

of FSIS, Respondents shall implement and maintain their pest control program in a manner 

sufficient to prevent the creation ofinsanitary conditions and practices, to prevent the 

harborage and breeding ofpests, and to ensure that meat and poultry products prepared, 

packed, and stored at Respondents' facility are not contaminated or adulterated. 

Custom Exemption Requirements 

13. Respondents shall ensure that the following custom slaughter and processing 

exemption requirements in 21 U.S.C. § 623 and 9 C.F.R. § 303.1 are met: 

(a) product does not become adulterated during processing, handling, storage, 

loading and unloading, or during transportation; 

(b) all slaughtered and processed animal carcasses and further processed meat 

products, are properly marked, labeled, and packaged; 

(c) custom prepared products are plainly marked "Not for Sale" and kept separate 

and apart from any meat or poultry products held for sale, and 

(d) records are maintained as required by 9 C.F.R. Part 303. 

14. Respondents shall notify FSIS ifthey change their meat exempt status. Ifchanges 

are made, Respondents shall operate in compliance with the FMIA and the regulations 

promulgated thereunder. 

Poultry Exemption Requirements 

15. Respondents shall ensure that the following retail store poultry exemption 

requirements in 21 U.S.C. 9 C.F.R. § 464 and 9 C.F.R. § 381.10 are met: 

(a) slaughter and processing ofpoultry and poultry products is conducted in sanitary 

conditions whereby products will not become adulterated or misbranded; 

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(b) slaughter oflive poultry purchased by the consumer

1 at the market and processed 

by the consumer's instructions; 

(c) processing ofpoultry products from Federal or New York State inspected, or 

exempted poultry operations; 

(d) processing ofpoultry products is only done with traditional and usual operations 

execpt canning; 

(e) sales are in normal retail quantities only and not in excess; 

(f) no more than 75 pounds can be purchased by a household consumer and 150 

pounds can be purchased by a hotel, restaurant, or similar institution (HRI); 

(g) sales of poultry products is made to consumers only; 

(h) at least 75% oftotal sales of product are to household consumers, and the total 

dollar value ofsales to HRis does not exceed the dollar limitation per calendar year 

provided by the Administrator; 

(i) shipping container of slaughtered and dressed or processed poultry products must 

bear all features of an inspected product, except that the product was inspected and 

passed; 

G) poultry and poultry products is distributed intrastate only; and 

(k) only one poultry exemption is claimed during a calendar year. 

16. Respondents shall notify FSIS ifthey change their poultry exempt status. If changes 

are made, Respondents shall operate in compliance with the PPIA and the regulations 

promulgated thereunder. 

1 As per 9 C.F.R. 38 1.IO(d)(2)(iv) a consumer is defined as "any household consumer, hotel, or restaurant, or 

similar institution." 

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Recordkeeping Provisions 

17. Respondents shall maintain full, complete, and accurate written records of all 

business activities applicable to Section 202 of the FMIA and Section 11(b) ofthe PPIA, as 

specified in 9 C.F.R. Parts 303.l(b)(3), 320, and 381.175. Respondents shall make all such 

records available for review and copying upon request of any authorized representative of 

the Secretary ofAgriculture. Respondents shall maintain such records for a period oftwo 

years after December 31 ofthe year in which the record was made, in accordance with 9 

C.F.R. Parts 320.3 and 381.177. 

Specified Risk Materials (SRM) 

18. Prior to the resumption ofcustom exemption privileges, and subject to verification 

by FSIS, Respondents shall develop a written specified risk material (SRM) control 

program, to include daily records sufficient to document procedures for the removal, 

segregation, and disposition of SRM, to ensure the control of SRM, and regulatory 

compliance with 9 C.F.R. Parts 309, 310, 311. This program shall include procedures 

indicating the handling and removal of non-ambulatory disabled cattle (downer) at their 

facility. 

19. Upon the resumption ofcustom exemption privileges, and subject to verification by 

FSIS, Respondents shall implement and maintain, on a daily basis, their written SRM 

control program. 

Inedible Material Control 

20. Respondents shall ensure that inedible material is maintained and handled in a 

manner that prevents the diversion of such material into human food, as specified in 9 

C.F.R. Parts 303.l(a)(2)(i), 303.l(b)(4), 381.10(a)(7), 416.2(b)(4) and 416.3(c). 

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Humane Handling and Slaughter 

21. Respondents shall ensure that any cattle, sheep, swine, or goats slaughtered or 

handled in connection with slaughter at their facility comply with the Humane Methods of 

Slaughter Act (HMSA) ofAugust 27, 1958 (7 U.S.C. §§ 1901-1906), 9 C.F.R. Part 313, and 

any Federal, state, or local laws regarding the humane treatment of animals. 

Personnel and Training 

22. Prior to the resumption of custom exempt and retail store privileges, and subject to 

verification by FSIS, all of Respondents' officers, managers, and employees shall complete 

training in sanitation and sanitary dressing procedures and all programs required to be 

maintained under this Agreement. 

23. Respondents shall train and educate any new employee(s), consistent with the 

requirements ofthis Order, within thirty (30) calendar days of employment. 

24. Respondents shall conduct annual training for all officers, managers, and employees, 

current and new, who are involved in the slaughter of livestock and poultry and the 

preparation ofmeat and poultry food products, consistent with the regulatory requirements 

set forth in 9 C.F.R. §§ 303.1, and 416, and the requirements of this Agreement. 

25. Respondents shall document all training and education oftheir personnel conducted 

in accordance with paragraphs 22 through 24 of this Agreement, maintain training records 

and retain copies ofall training and educational materials, and make these records and 

materials available to FSIS personnel for review and/or copying immediately upon request. 

Establishment Management 

26. Respondents shall designate one full-time and one alternate employee to be 

responsible for oversight of all programs required by this Agreement, and the FMIA, PPIA, 

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and applicable federal meat and poultry regulations. The designated employee or alternate 

shall have authority to hold up production, stop production, remove product from 

production, or take positive control of any products procedures, processed, packed, or stored 

at the firm which are, or believed to be, adulterated or misbranded, when facility sanitation, 

or production deficiencies are observed. The designated employee or alternate shall be 

present at all times when operations concerning exempt meat and poultry are conducted. 

General Provisions 

27. Respondents shall not: 

(a) commit any felony or fraudulent act; 

(b) violate any section ofthe FMIA, PPIA, and Federal, State, or local statutes or 

regulations involving the preparation, sale, transportation, distribution or attempted 

distribution of any adulterated or misbranded meat or poultry product; or 

(c) assault, intimidate, impede, or interfere with, or threaten to assault, intimidate, 

impede, or interfere with any representative or designee ofthe Secretary ofAgriculture. 

28. Respondents shall make all records required to be maintained by the FMIA, PPIA, or 

regulations issued thereunder or this Agreement available to FSIS personnel for review 

and/or copying immediately upon request. 

29. Respondents shall fully and completely cooperate with any USDA or FSIS 

investigation, inquiry, review or examination ofRespondents' (a) facility, products, 

inventory or records, (b) compliance with the FMIA, PPIA, or the regulations issued 

thereunder, or (c) compliance with this Agreement. 

30. The Administrator, FSIS, may summarily terminate exempt privileges from 

Respondents upon a determination by the Director, Enforcement and Litigation Division, 

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Office ofInvestigation Enforcement and Audit, FSIS, that Respondents have failed to 

comply with 9 C.F.R. Parts 303.1, 381.10, and/or 416, or any requirement ofthis 

Agreement. It is acknowledged that Respondents retain the right to request an expedited 

hearing pursuant to the Adopted Rules ofPractice concerning any violation alleged as the 

basis for a summary termination of exempt privileges. 

31. The provisions ofthis Agreement shall be applicable for three (3) years and become 

effective when signed by all parties and upon the reinstatement of custom exempt and retail 

store privileges. 

32. Nothing in this Agreement shall preclude any regulatory or administrative actions or 

the referral ofany matter to any agency for possible criminal, civil, or administrative 

proceedings. 

If any provision ofthis Agreement is declared invalid, such declaration shall not affect 

the validity ofany other provision herein. 

Siil

Scott C. Safian, Director 

Enforcement and Litigation Division 

OIEA, FSIS, USDA 

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