(a) When the issue clearly embodies only the matter of interpretation of U.S. grade defects, which are not included in this group or if the defect is included in this group but the tolerance is more restrictive in the U.S. grade than contained in this group, then interpretation by the federal agency shall be final and accepted.

(b) When the product in question, either certified as meeting the U.S. grade by the federal agency or not, meets the requirements of a particular U.S. grade and the minimum standards in the California Administrative Code are more restrictive than the U.S. grade in question, then the commodity is subject to rejection under the California Administrative Code and the application of the U.S. grade shall not be construed to alter this situation. For example: If a U.S. grade permits 10 percent insect injury and the minimum standards of this group permits only 5 percent of like injury, then the California Administrative Code prevails. This same situation could apply to defective conditions independent of tolerances for defects.

(c) There may be a few situations where similar defective conditions are contained both in the U.S. grades and in the minimum standards of the California Administrative Code where federal grade interpretation and certification indicates that the product complies with the grade but fails to meet the minimum standards and would be cause for rejection under this group.