(a) All certified seed potatoes must be graded to conform with the U.S. standard grades and sizes for seed potatoes unless a signed waiver of grade inspection has been obtained from the purchaser as outlined in subsections (d) or (g) of this section.
(b) All seed potatoes must be shipped under labels or bulk certificates that represent the grade to which they have been sorted. Potatoes failing to meet the grade specified on the label or bulk certificate shall be:
  (1) resorted to meet the grade requirements;
  (2) re-labeled with new labels or re-issued a new bulk certificate representative of the grade of the potatoes; or
  (3) the labels must be removed.
(c) All shipments must be inspected by a Federal/State inspector at the time of shipment. The Federal/State Inspection Service is responsible for inspecting seed shipments to verify that proper grade standards have been met. If a "zero tolerance" disease such as bacterial ring rot or root knot nematode is suspected or any other condition which may disqualify a seed lot from certification is discovered during the inspection, the department shall be notified by the applicant so additional procedures can be implemented to identify and confirm the true nature of the problem.
(d) Each lot sold shall be inspected by a Federal/State inspector or a waiver of grade inspection must be secured from the purchaser at the time of delivery or acceptance.
(e) All certified seed potatoes marketed in bags and carrying a label must meet the highest grade requirements indicated by either the bag or the colored label. U.S. No. 1 seed grade is not strictly a U.S. No. 1 grade, and may not be marketed in bags branded as U.S. No. 1.
(f) All certified seed potatoes exported outside of the U.S. shall meet the U.S. EXPORT "SEED POTATOES" standards for the given generation and/or class being shipped.
(g) Certified seed potatoes marketed expressly for use as garden seed and shipped in quantities less than 10 cwt per cultivar or clone within the same load shall be exempt from Federal/State grade inspection. However, a waiver of grade inspection must be secured from the purchaser at the time of delivery or acceptance.

Source Note: The provisions of this §10.43 adopted to be effective November 7, 2006, 31 TexReg 8983