Country of Origin Labeling, Final Rule 2013: Labeling Provisions for Muscle Cut Covered Commodities National Chicken Council Webinar Wednesday, June 12, 2013 2 p.m. EDT COOL Final Rule 2013: Summary of Major Provisions Origin designations are required to specify the country in which production steps of birth, raising, and slaughter of the animal from which the meat is derived took place. Eliminates the allowance for commingling of muscle cut covered commodities of different origins. Amends the definition for “retailer” to include any person subject to be licensed as a retailer under the Perishable Agricultural Commodities Act (PACA). COOL Final Rule 2013: Implementation The effective date of this regulation is May 23, 2013, and the rule is mandatory as of that date. During the six-month period following the effective date of the regulation, AMS will conduct an industry education and outreach program concerning the provisions and requirements of this rule. COOL Final Rule 2013: Implementation The education and outreach period means that AMS staff will work to do everything that we can during the next six months to help educate the industry on the new requirements. Webinars hosted by industry associations such as this one. Guidance documents on the COOL Website: http://www.ams.usda.gov/COOL Specific questions may be sent by email to: [email protected] COOL Final Rule 2013: Implementation Transition Period Questions We need to provide further guidance to both the industry and our State reviewers on transitional issues. More information with regards to enforcement transition will be forthcoming. COOL Final Rule 2013: Implementation Transition Period Questions The rule’s requirements do not apply to muscle cut covered commodities produced or packaged before the effective date of the rule (May 23, 2013). This will allow existing stock to clear the chain of commerce. After the 6 month education period, retailers may continue to use existing inventories of older labels until these inventories are exhausted as long as retailers provide the more specific information via other means (e.g., signage). COOL Final Rule 2013: Changes from 2009 Final Rule 2009 Final Rule Prescribed categorical labeling requirements for: Muscle cut covered commodities of United States origin. Muscle cut covered commodities of multiple countries of origin that include the United States. 2013 Final Rule Muscle cut covered commodities derived from animals slaughtered in the United States are required to specify the country in which production steps of birth, raising, and slaughter of the animal from which the meat is derived took place. COOL Final Rule 2013: Changes from 2009 Final Rule 2009 Final Rule 2013 Final Rule Labeling Covered Commodities of United States Origin: “Product of the U.S.” The United States country of origin designation for muscle cut covered commodities shall include all of the production steps. “Born (Hatched), raised and slaughtered (harvested) in the U.S.” COOL Final Rule 2013: Changes from 2009 Final Rule 2009 Final Rule 2013 Final Rule Labeling Muscle Cut Covered Commodities of Multiple Countries of Origin that include the United States: “Product of the U.S. and Country X” or “Product of Country X and the U.S.” Muscle cut covered commodities shall be labeled to specifically identify the production steps occurring in each country. For example: “Born and Raised in Country X, Harvested in the U.S.” “Born in Country X, Raised and Harvested in the U.S.” COOL Final Rule 2013: Changes from 2009 Final Rule 2009 Final Rule 2013 Final Rule Commingling refers to the allowance provided in the 2009 COOL regulations for industry to affix one label to all muscle cuts processed on the same production day, even when the cuts were derived from animals of two or more different origins. Rule eliminates the allowance for commingling of muscle cut covered commodities of different origins. Removing the commingling allowance results in labels that provide more specific information as to the place of birth, raising, and slaughter of the animal from which the meat is derived. COOL Final Rule 2013: Much of the Rule Remains Unchanged Definitions remain the same: Born (Hatched) Raised Slaughtered (Harvested) Use of disjunctive terms and phrases such as “or,” “may contain,” and “and/or” that only convey a list of possible origins are still not allowed. Imported labeling requirements remain the same. Recordkeeping requirements remain the same. COOL Final Rule 2013: Listing Order Requirements 2009 Final Rule 2013 Final Rule Labeling Muscle Cut Covered Commodities of Multiple Countries of Origin that include the United States: “Product of the U.S. and Country X.” NOTE: The rule does not prescribe the order in which production steps may be listed. Except if solely imported for immediate slaughter, the countries may be listed in any order. e.g., “Raised and Harvested in the U.S.; Hatched in Canada” Or, “Hatched in Canada, Raised and Harvested in the U.S.” COOL Final Rule 2013: Labeling Requirements for Imported Meat Are Unchanged Imported meat labels will continue to follow Customs and Border Protection regulations and read: “Product of [Country X].” COOL Final Rule 2013: Non-Specific Labeling Terms Are Still Not Allowed A sign stating, “All of the beef in this case is from livestock born in the United States or Canada, raised in the United States or Canada, and Slaughtered in the United States” would not be acceptable as the case contains different origin meat products. COOL Final Rule 2013: Recordkeeping Requirements Are Unchanged Suppliers of a covered commodity to a retailer, whether directly or indirectly, must make available information to the buyer about the country(ies) of origin of the covered commodity. This information may be provided either on the product itself, on the master shipping container, or in a document that accompanies the product through retail sale. The slaughter facility must possess records that are necessary to substantiate that claim for a period of 1 year from the date of the transaction. COOL Final Rule 2013: Other Labeling Considerations Abbreviations for the production steps are permitted as long as the information can be clearly understood by consumers. For example, consumers would likely understand: “brn” as meaning “born”; “htchd” as meaning “hatched”; “raisd” as meaning “raised”; “slghtrd” as meaning “slaughtered” or “hrvstd” as meaning “harvested.” COOL Final Rule 2013: Other Labeling Considerations Signage: A sign at retail point of purchase can be used in lieu of individual package labeling as long as the sign is clear as to the specific origin of the products available for sale. In practice this would mean that all of the meat is of the same origin. For example, a sign saying, “All of the chicken for sale in this case are from chickens hatched, raised and harvested in the United States” is acceptable. COOL Final Rule 2013: Other Recordkeeping Considerations Supporting Documentation: No change in documentation required to verify U.S. origin claims. “Product of USA” on the supporting documents (Bills of Lading, invoices) is sufficient to convey the origin information from suppliers to retailers. Retailers may use a sign to convey the more specific production step information (“hatched, raised, and slaughtered in the U.S.”) COOL Final Rule 2013 Questions ?