(a) A handler or importer shall be subject to withdrawal of inspection services, for a period of time to be determined by USDA, if the handler or importer:
(1) Acquires farmers stock peanuts without official incoming inspection, pursuant to Sec. 996.30;
(2) Fails to obtain outgoing inspection on shelled or cleaned-inshell peanuts, pursuant to Sec. 996.31, and ships such peanuts for human consumption use;
(3) Ships failing quality peanuts, pursuant to Sec. 996.31, for human consumption use;
(4) Commingles failing quality peanuts with certified edible quality peanuts and ships the commingled lot for human consumption use;
(5) Fails to maintain positive lot identification, pursuant to Sec. 996.40(a), on peanut lots certified for human consumption use;
(6) Fails to maintain and provide access to records, pursuant to Sec. 996.71, on the reconditioning or disposition of peanuts acquired by such handler or importer; or
(7) Otherwise violates any provision of section 1308 of the Act or any provision of this part.
(b) Any peanut lot which fails to meet the Outgoing quality standards specified in Sec. 996.31, and is not reconditioned to meet such standards, or is not disposed to non-human consumption outlets as specified in Sec. 996.50, shall be reported by USDA to the Food and Drug Administration and listed on an Agricultural Marketing Service Web site.