NFRA Update on Mandatory Country of Origin Labeling

This bulletin to members addresses current developments in mandatory country of origin labeling requirements.

I. Background of the COOL Legislation

Under the Tariff Act of 1930, frozen products are required to be labeled for foreign content.  Country of origin labeling (COOL) for a broader range of products became a legal requirement as part of the Farm Security and Rural Investment Act of 2002, more commonly known as the 2002 Farm Bill.   One of the Farm Bill's many provisions required country of origin labeling for beef (including veal), lamb, pork, fish and shellfish, perishable agricultural commodities (fresh and frozen fruits and vegetables), and peanuts.  Implementation of COOL is the responsibility of USDA’s Agricultural Marketing Service.

Implementation of mandatory COOL for all covered commodities except wild and farm-raised fish and shellfish was delayed until September 30, 2006. USDA implemented the COOL program for fish and shellfish covered commodities in 2005.  Covered seafood commodities were required to be labeled at retail to indicate their country of origin and their method of production (wild and/or farm-raised).  As required by law, certain processed seafood products, as well as seafood products served at food service establishments, remained exempt from these requirements.

In 2005, Congress delayed implementation of mandatory COOL for the remaining covered commodities until September 30, 2008.

The recently enacted Food, Conservation and Energy Act of 2008 (2008 Farm Bill) expanded the list of covered commodities to include chicken, goat meat, ginseng, pecans and macadamia nuts

2. USDA Interim Final Rule

On August 1, 2008 the U.S. Department of Agriculture issued an interim final rule to implement mandatory country of origin labeling (COOL) program that will become effective on Sept. 30, 2008.  A copy of this interim final rule can be found at http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5070926

As required by the 2002 and 2008 Farm Bills, the rule covers muscle cuts and ground beef (including veal), lamb, chicken, goat, and pork; perishable agricultural commodities (fresh and frozen fruits and vegetables); macadamia nuts; pecans; ginseng; and peanuts.  As noted above, USDA previously implemented the COOL program for fish and shellfish covered commodities.

 Commodities covered under COOL must be labeled at retail to indicate their country of origin. However, they are excluded from mandatory COOL if they are an ingredient in a processed food item.

 USDA has also revised the definition of a processed food item so that items derived from a covered commodity that has undergone a physical or chemical change (e.g., cooking, curing, smoking) or that has been combined with other covered commodities or other substantive food components (e.g., chocolate, breading, tomato sauce) are excluded from COOL labeling.

 Food service establishments, such as restaurants, lunchrooms, cafeterias, food stands, bars, lounges, and similar enterprises are exempt from the mandatory country of origin labeling requirements.

USDA’s interim final rule outlines the requirements for labeling of covered commodities. The rule prescribes specific criteria that must be met for a covered commodity to bear a "United States country of origin" declaration. In addition, the rule also contains provisions for labeling covered commodities of foreign origin, meat products from multiple origins, ground meat products, as well as commingled covered commodities. The rule also reduces the recordkeeping retention requirements for suppliers and centrally-located retail records to one year and removes the requirement to maintain records at the retail store. The law provides for penalties for both suppliers and retailers found in violation of the law of up to $1,000 per violation.

As noted, the rule will become effective on Sept. 30, 2008. To allow time for covered commodities that are already in the chain of commerce -- and for which no origin information is known or been provided -- to clear the system, the requirements of this rule will not apply to covered commodities produced or packaged before Sept. 30, 2008.

USDA plans to conduct education and outreach activities during the six months following the rule's effective date to help the industry comply with the law.

3. Useful Links 

Additional information, including USDA Talking Points and Responses to Frequently Asked Questions, can be found at: http://www.ams.usda.gov/COOL.

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