(a) The provisions of this subtitle requiring inspection of the slaughter of livestock and the preparation of the carcass, part of it, meat, or meat food product at any establishment conducting these operations do not apply to the following:
(1) Slaughter by any person of livestock he raises, preparation by him and transportation in intrastate commerce of any carcass, part of it, or meat or meat food product of livestock, if used exclusively by the owner, his household, or any nonpaying guest or employee;
(2) Custom slaughter or custom processing by any person of cattle, sheep, swine, or goats delivered by the owner for slaughter or custom processing if used exclusively by the owner, his household, nonpaying guests, or employees, and the meat food product of livestock is plainly marked “not for sale”;
(3) Any operation traditionally and usually conducted at a retail store and restaurant when conducted at the retail store, restaurant, or retail-type establishment for sale in normal retail quantities or for service of the articles to consumers at the establishment;
(4) Any individual or service or charitable organization that kills, dresses, and sells fresh beef, pork, or lamb within 24 hours on his or its property if a veterinary antemortem and postmortem inspection certificate is issued for each animal slaughtered; and
(5) Slaughter by any person of livestock or preparation of any livestock carcass, part of it, meat, or meat food product that is not intended for use as human food if any article not naturally inedible by humans is denatured or otherwise identified to deter its use as human food pursuant to the departmental rules and regulations.
(b) The slaughter of animals and preparation of articles referred to in paragraph (a)(2) of this section, shall be conducted under sanitary conditions the Secretary adopts by rule or regulation.
(c) The adulteration and misbranding provisions of this subtitle, other than the requirement of the inspection legend, apply to any article which is not required to be inspected under this section.