1. (1) U.S. Extra Fancy, U.S. Fancy, U.S. No. 1, U.S. No. 1 Early and U.S. No. 1 Hail grades: 10 per cent of the apples in any lot may fail to meet the requirements of the grade, but not more than one half of this amount, or five per cent, shall be allowed for apples which are seriously damaged, including therein not more than one per cent for apples affected by decay or internal breakdown.
2. (2) U.S. Utility grade: 10 per cent of the apples in any lot may fail to meet requirements of the grade, but not more than one half of this amount, or five per cent, shall be allowed for apples which are seriously damaged by insects, and including in the total tolerance not more than one per cent for apples affected by decay or internal breakdown.

3. (b) When applying the foregoing tolerances to combination grades no part of any tolerance shall be allowed to reduce, for the lot as a whole, the 50 per cent of apples of the higher grade required in the combination but individual containers shall have not less than 40 per cent of the higher grade.

   (c) Size.

   When size is designated by the numerical count for a container, not more than five per cent of the apples in the lot may vary more than one-quarter inch in diameter. When size is designated by minimum or maximum diameter, not more than five per cent of the apples in any lot may be smaller than the designated minimum and not more than 10 per cent may be larger than the designated maximum.

In order to allow for variations incident to proper grading and handling in each of the foregoing grades the following tolerances are provided as specified:

(a) Defects.