COUNTRY OF ORIGIN QUESTIONS & ANSWERS
What are the general requirements of
Country of Origin Labeling?
The Farm Bill amended the Act to direct the Secretary of Agriculture to issue
regulations by September 30, 2004, to require retailers to notify their
customers of the country of origin of beef (including veal), lamb, pork, fish,
shellfish, perishable agricultural commodities, and peanuts beginning September
30, 2004. The 2004 Appropriations Act delayed the applicability of mandatory
COOL for all covered commodities except wild and farm-raised fish and shellfish
until September 30, 2006. The law defines the terms “retailer” and “perishable
agricultural commodity” as having the meanings given those terms in section 1(b)
of the Perishable Agricultural Commodities Act of 1930 (PACA)(7 U.S.C. 499 et
seq.). Food service establishments are specifically excluded as are covered
commodities that are ingredients in a processed food item. In addition, the law
specifically outlines the criteria a covered commodity must meet to bear a
“United States country of origin” label.
How do I find out if my product is considered a covered commodity or if it
is labeled accurately under the COOL law?
Questions regarding whether a product is considered a covered commodity or is
labeled accurately under this regulation may be e-mailed to
cool@usda.gov.
What is the definition of a processed food item and what types of products
are considered processed food items?
Fish and shellfish covered commodities are exempt from COOL under this rule if
they are an ingredient in a processed food item. An ingredient is a component
either in part or in full of a finished retail food product. A processed food
item is a retail item derived from fish or shellfish that has undergone specific
processing resulting in a change in the character of the covered commodity, or
that has been combined with at least one other covered commodity or other
substantive food components (e.g., breading, tomato sauce), except that the
addition of a component (such as water, salt, or sugar) that enhances or
represents a further step in the preparation of the product for consumption,
would not in itself result in a processed food item. Specific processing that
results in a change in the character of the covered commodity includes cooking
(e.g., frying, broiling, grilling, boiling, steaming, baking, roasting), curing
(e.g., salt curing, sugar curing, drying), smoking (cold or hot), and
restructuring (e.g., emulsifying and extruding, compressing into blocks and
cutting into portions). Examples of fish and shellfish combined with different
covered commodities or other substantive food components include scallops and
shrimp in a seafood medley, breaded shrimp, breaded fish fillets, coated shrimp,
and marinated fish fillets.
What requirements must be met for a retailer to label a covered commodity
as being of U.S. origin?
The law prescribes specific criteria that must be met for a covered commodity to
bear a “United States country of origin” declaration. The specific requirements
for fish and shellfish covered commodities are as follows: farm-raised fish and
shellfish--covered commodities must be derived exclusively from fish or
shellfish hatched, raised, harvested, and processed in the United States, and
that has not undergone a substantial transformation (as established by U.S.
Customs and Border Protection) outside of the United States; wild fish and
shellfish--covered commodities must be derived exclusively from fish or
shellfish either harvested in the waters of the United States or by a U.S.
flagged vessel and processed in the United States or aboard a U.S. flagged
vessel, and that has not undergone a substantial transformation (as established
by U.S. Customs and Border Protection) outside of the United States.
How should I label a retail product that contains a covered commodity
(such as a bag of shrimp) commingled from more than one country of origin?
For imported covered commodities that have not subsequently been substantially
transformed in the United States that are commingled with other imported and/or
U.S. origin commodities, the declaration shall indicate the countries of origin
for covered commodities in accordance with existing Federal legal requirements.
For imported covered commodities that have subsequently undergone substantial
transformation in the United States that are commingled with other imported
covered commodities that have subsequently undergone substantial transformation
in the United States (either prior to or following substantial transformation in
the United States) and/or U.S. origin covered commodities, the declaration shall
indicate the countries of origin contained therein or that may be contained
therein. For commingled covered commodities that bear a “may contain”
declaration, suppliers responsible for initiating the claim must maintain
records sufficient to substantiate both that all of the countries listed are
valid and that all of the possible countries of origin have been listed.
What are the requirements for maintaining country of origin information
for blended covered commodities that contain products from more than one country
of origin?
The labeling requirements are consistent with other Federal legal requirements
under which facilities are not required to separately track throughout the
process, and ultimately into each individual retail package, the country source
of the commodities that are found within each individual retail package. Rather,
the declaration of the retail product can indicate the several countries of
origin that are represented in the overall blending process, without being
required to verify which specific countries of origin are found within each
individual retail package.
Why can’t the Department of Agriculture (USDA) track only imported
products and consider all other products to be of "U.S. Origin?"
The COOL provision of the Farm Bill applies to all imported and domestic covered commodities.
Moreover, the law specifically identifies the criteria that products of U.S.
origin must meet. The law further states that “Any person engaged in the
business of supplying a covered commodity to a retailer shall provide
information to the retailer indicating the country of origin of the covered
commodity.” And, the law does not provide authority to control the movement of
product. In fact, the use of a mandatory identification system that would be
required to track controlled product through the entire chain of commerce is
specifically prohibited.
When will the requirements of this regulation be enforced?
The effective date of this regulation is April 4, 2005. The requirements of this rule do not apply to frozen fish
or shellfish caught or harvested before December 6, 2004. The country of origin statute provides that “not later
than September 30, 2004, the Secretary shall promulgate such regulations as are
necessary to implement this subtitle.” Many of the covered commodities sold at
retail are in a frozen or otherwise preserved state (i.e., not sold as “fresh”).
Thus, many of these products would already be in the chain of commerce prior to
September 30, 2004, and the origin/production information may not be known.
Therefore, it is reasonable to delay the effective date of this interim final
rule for six months to allow existing inventories to clear through the channels
of commerce and to allow affected industry members to conform their operations
to the requirements of this rule. During this time period, AMS will conduct an
industry education and outreach program concerning the provisions and
requirements of this rule. AMS also will focus its resources for the six months
immediately following the effective date of this interim final rule on industry
education and outreach. After a careful review of all its implications, AMS has
determined that its allocation of enforcement resources will ensure that the
rule is effectively and rationally implemented. This AMS plan of outreach and
education, conducted over a period of one year, should significantly aid the
industry in achieving compliance with the requirements of this rule.
How will the requirements of this regulation be enforced?
USDA will seek to enter into partnerships with States having existing
enforcement infrastructure to assist in the administration of this law. USDA
will determine the scheduling and procedures for the compliance reviews. Only
USDA will be able to initiate enforcement actions against a person found to be
in violation of the law. USDA may also conduct investigations of complaints made
by any person alleging violations of these regulations when the Secretary
determines that reasonable grounds for such investigation exist. In addition,
the Agency plans to publish a compliance guide that will provide the industry
with information on compliance and the phasing in of active enforcement.
What are the recordkeeping requirements of this regulation?
Any person engaged in the business of supplying a covered commodity to a
retailer, whether directly or indirectly, must maintain records to establish and
identify the immediate previous source (if applicable) and immediate subsequent
recipient of a covered commodity, in such a way that identifies the product
unique to that transaction by means of a lot number or other unique identifier,
for a period of 1 year from the date of the transaction. For retailers, records
and other documentary evidence relied upon at the point of sale by the retailer
to establish a product’s country(ies) of origin and method(s) of production
(wild and/or farm-raised) must be available during normal business hours to any
duly authorized representatives of USDA for as long as the product is on hand.
For pre-labeled products, the label itself is sufficient evidence on which the
retailer may rely to establish a product’s origin and method(s) of production
(wild and/or farm-raised). Records that identify the supplier, the product
unique to that transaction by means of a lot number or other unique identifier,
and for products that are not pre-labeled, the country of origin and method of
production (wild and/or farm-raised) information must be maintained for a period
of 1 year from the date the origin and production designations are made at
retail.
How does this regulation impact existing State country of origin labeling
programs?
To the extent that State country of origin labeling programs encompass
commodities which are not governed by this regulation, the States may continue
to operate them. For those State country of origin labeling programs that
encompass commodities that are governed by this regulation, these programs are
preempted.
Can food products that are not covered by this regulation be voluntarily
labeled with COOL information?
Yes. Such voluntary claims must be truthful and accurate and adhere to existing
Federal labeling regulations.