In order to allow for variations incident to proper grading and handling, the following tolerances by count, shall be permitted in any lot:

U.S. Fancy and U.S. No. 1.

For defects at shipping point. 2 8 percent for fruit which fail to meet the requirements of the specified grade: Provided, That included in this amount not more than 4 percent shall be allowed for defects causing serious damage, including in this latter amount not more than 1 percent for fruit affected by internal breakdown or decay.

2 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. 12 percent for fruit which fail to meet the requirements of the specified grade: Provided, That included in this amount not more than the following percentages shall be allowed for defects:

8 percent for permanent defects;

6 percent for defects causing serious damage, including therein not more than 4 percent for serious damage by permanent defects and not more than 2 percent for fruit affected by internal breakdown or decay.

U.S. No. 2.

For defects at shipping point. 2 8 percent for fruit which fail to meet the requirements of this grade: Provided, That included in this amoung not more than 4 percent shall be allowed for sunscald, insects, internal breakdown or decay, including in this latter amount not more than 1 percent for fruit affected by internal breakdown or decay.

For defects en route or at destination. 12 percent for fruit which fail to meet the requirements of this grade: Provided, That included in this amount not more than the following percentages shall be allowed for defects:

8 percent for permanent defects including therein not more than 4 percent for sunscald, or insects; and,

2 percent for internal breakdown or decay.