(a) Minimum kernel content requirements for inshell walnuts for reserve disposition credit. For purposes of §§984.54 and 984.56, no lot of inshell walnuts may be held, exported, or disposed of for use by governmental agencies or charitable institutions unless it meets the minimum requirements for merchantable inshell walnuts effective pursuant to §984.50(a). The disposition of any lot of inshell walnuts pursuant to §984.64 having at least a certified kernelweight of not less than 10 percent of the inshell weight of the lot may be credited against a handler's reserve obligation.

(b) Minimum kernel content requirements for shelled walnuts for reserve disposition credit. For the purposes of §§984.54 and 984.56, no lot of shelled walnuts may be held, exported, or disposed of for use by government agencies or charitable institutions unless it meets the minimum requirements for merchantable shelled walnuts effective pursuant to §984.50(b). The disposition of any lot of shelled walnuts pursuant to §984.64 having at least a certified kernelweight of kernels six sixty-fourths of an inch or larger of not less than 10 percent of the total weight of the lot may be credited against a handler's reserve obligation: Provided, That such minimum kernel content requirements shall not apply to any lot of walnut meal certified by the designated inspection service as having been derived from chopping, slicing, or dicing merchantable shelled walnuts.

(c) Inspection and certification of shelled walnuts that are manufactured into products. For purposes of §§984.50(d) and 984.52(c), shelled walnuts may be cut or diced without prior inspection and certification: Provided, That the end product, except for walnut meal, is inspected and certified. For purposes of this section, end product shall be defined as walnut pieces equal to or larger than eight sixty-fourths of an inch in diameter. Walnut meal shall be defined as walnut pieces smaller than eight sixty-fourths of an inch in diameter.

(1) End product. End product must be sized, inspected and certified, and the size must be noted on the inspection certificate. The end product quality must be equal to or better than the minimum requirements of U.S. Commercial grade as defined in the United States Standards for Shelled Walnuts (Juglans regia).

(2) Walnut meal. Walnut meal that is accumulated during the cutting or dicing of shelled walnuts to create end product must be presented with the smallest end product from that manufacturing run that is inspected and certified. If the end product meets the applicable U.S. Commercial grade requirements, the walnut meal accumulated during the manufacture of that end product shall be identified and referenced on a separate meal certificate as “meal derived from walnut pieces that meet U.S. Commercial grade requirements.” The certificate number of the smallest end product will be referenced on the meal certificate.

(3) Failed lots. If the end product fails to meet applicable U.S. Commercial grade requirements, the end product may be reconditioned, re-sampled, inspected again, and certified. However, the walnut meal accumulated during the manufacture of that end product shall be rejected and disposed of pursuant to the requirements of §984.64.

[41 FR 54476, Dec. 14, 1976, as amended at 75 FR 51929, Aug. 24, 2010]