In order to allow for variations incident to proper grading and handling in each of the following grades, the following tolerances, by count, based on a minimum 50-count sample, except when packages contain less than 50 fruit, a minimum 25-count sample shall be examined, (when packages contain less than 25 fruit adjoining packages shall be opened to obtain the 25-count minimum sample), are provided as specified:

U.S. Fancy, U.S. Extra No. 1, and U.S. No. 1 grades—(1) For defects at shipping point. 1 10 percent of the peaches in any lot may fail to meet the requirements of the specified grade: Provided, That included in this amount, 5 percent shall be allowed for defects causing serious damage, including in this latter amount not more than 1 percent for peaches which are affected by decay.

1 Shipping point, as used in these standards, means the point of origin of the shipment in the producing area or at port of loading for ship stores or overseas shipment, or, in the case of shipments from outside the continental United States, the port of entry into the United States.

For defects en route or at destination. 14 percent for peaches in any lot that fail to meet the requirements of the grade: Provided, That included in this amount not more than the following percentages shall be allowed for defects listed:

10 percent for permanent defects;

7 percent for defects causing serious damage, included therein not more than 5 percent for serious damage by permanent defects and not more than 2 percent for decayed peaches.

For color—(i) U.S. Fancy grade. 10 percent for peaches in any lot which fail to meet the requirements of the grade:

U.S. Extra No. 1 grade. Individual packages may contain not less than 40 percent of peaches which meet the requirements of the grade: Provided, That the entire lot averages not less than 50 percent.

U.S. No. 2 grade—(1) For defects at shipping point. 10 percent of the peaches in any lot may fail to meet the requirements of this grade: Provided, That included in this amount not more than 1 percent for peaches which are affected by decay.

For defects en route or at destination. 14 percent for peaches in any lot that fail to meet the requirements of the grade: Provided, That included in this amount not more than the following percentages shall be allowed for defects listed:

10 percent for permanent defects;

2 percent for peaches which are affected by decay.