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Issues: Country of Origin LabelingThe following questions and answers were asked during the August 6, 2008 PMA/Western Growers Webinar on the USDA's interim final rule on mandatory country of origin labeling. PMA thanks USDA for answering these questions, thereby providing members and industry with the agency's interpretation on various COOL scenarios as they relate to labeling situations suppliers may experience. Country of origin pertains to the product (raw material), not where the product is manufactured or packed? Yes, COO pertains to where the raw material was grown. We currently repack and have multiple partials that are packed into a box. Does each bag/package need to be labeled with the COOL information if the invoice lists it already? If the invoice includes the declaration of origin, then each bag/package does not need to be labeled as long as the country of origin (COO) documentation moves with the product and is provided to the retailer. Would a designation of U.S. #1 be acceptable as an origin mark given that the product that carries a U.S. grade standard must be a U.S. product? No. The grade standard “U.S. #1” will not equate to country of origin labeling. This is a grade standard that represents that certain, size, condition, etc. is met on the particular product. It does not by itself confer origin. For instance, someone can order potatoes from outside of the U.S. that meets U.S. # 1 grade standards, but the product itself is not a U.S. origin product. The same idea would apply for grade standards from other countries, i.e. “Canada #1.” We are revising our shipping documents to reflect and meet the COOL requirements. We require a lot of information on our shipping documents and so I have a COO (Country of Origin) column to show the country from which the product originates; however, my software vendor informs me this is not good enough and I need to show a statement for each product line. Product of USA or Produce of USA. By using the statement - if we have a 100 product line order - it essentially doubles the amount of line spacing needed and increases our paper usage because the "Product of XXXXXXX" statement cannot be printed on the same line. I was trying to save paper and space by putting a COO column in instead of printing a statement below each product line. Is use of the COO column completely out of the question? Your software vendor is not quite correct. Your proposed invoice is an acceptable example of providing the country of origin to subsequent buyers. The declaration of the country of origin may be in the form of a statement such as: "Product of Country X," "Grown in Country X," "Produce of Country X," may only include the name of the country "Country X" or may be in the form of a checkbox provided it conforms with other Federal labeling regulations (i.e., CBP, FDA) (§65.400(a)). If multiple pre-labeled units are shipped in open top box are palletized when shipped, does the open topped box also need to be marked with country of origin? What if the open box is used as part of a display to the consumer? The law does not require a specific method of labeling. The box or shipping container may be used but the retailer may also rely on documentation and or signage at the retail store. With the new GS1 (RSS) databars there is very little space on the label. Prior to this we used to put Product of USA or Product of Canada. With databars we can only fit USA or CANADA. Is this acceptable? For purposes of COOL, you can use “USA”, “Canada” in lieu of “Produce of USA” or “Product of Canada.” Also is just California or BC acceptable? State, region or locality is an acceptable designation of COO. Thus, California or British Colombia would be acceptable. We understand that using the full name of the state may be an issue. Therefore, we request that you submit comments on the need for state abbreviations. The origin declaration has to be definitive, meaning you cannot use “or.” You should only list the country based upon what is packed. If you pack product from 2 different countries, then you list “USA and Canada” or in the alternative “Product of USA and Canada.” When product of 4 possible mixed origins are repacked into retail packs in the US, does each retail pack of over 60 items need to have the exact changing countries of origin or can THOSE packs have country A. B,C or D on them? The shipping boxes will have a check mark system. Labeling will be a nightmare on the retail packs with each changing load. The supplier/retailer must provide accurate COOL information that specifically states the origin of the product. Check marks on boxes according to the current COO are acceptable. Are there any requirements regarding segregation of product during the shipping process? For example, multiple COO products on the same pallet. No, there are no requirements on the segregation while shipping. If we have a pallet with 64 boxes, if we already have one label on each side of the pallet, do we still need to put a label on each box? Stickers on pallets are not sufficient; each box would have to be labeled or the COO information could be provided in another way. Does COOL include any state classifications such as grapefruit from TX or FL or CA? State designations are allowed. Is the city and state acceptable? i.e. Reedley, CA 93654. State designation is acceptable. The “City of Reedley” would not be sufficient. Please note that a state designation is acceptable if it confers origin. If this information, however, is simply being used to note the shipper’s address and not the produce origin, the designation would not be sufficient. As long as our address is on the package will that cover COOL? No, there must be a country of origin declaration; a supplier’s address may or may not define COO. Will there be problems if a label, etc. falls off? (i.e., an asparagus tag can fall very easily.) Depending upon the situation, if a good faith effort has been made and one label falls off, it should not present a problem. However, if all the labels fall off, then you need to select a different manner to relay the COO information such as the invoice. Is there any requirement for state of origin labeling? If not, how is USDA informing states about the law? If a state inspection agency (like Texas) is requiring state of origin, how should we report this issue for resolution? Under COOL there is no requirement for the “state of origin” to be listed but listing the state, region or locality is sufficient. This law is a consumer notification law which applies to retailers. USDA is working with numerous state agricultural agencies to review compliance by retailers. Complaints about failure to provide country of origin may be provided via COOL@usda.gov. Will "From the Garden State" be acceptable? No. “From the Garden State” alone is not sufficient. You must state the country of origin, state, region or locality. A slogan or motto is akin to a flag or a symbol which by itself is not acceptable; but New Jersey blueberries would suffice. Will USDA consider additional names of countries to be abbreviated? Example: Product of Guatemala, Mexico, Peru. You could certainly submit comments on this to www.regulations.gov. Currently the only acceptable abbreviations are those already approved by Customs and Border Protection (CBP). But, if it says "grown in Salinas, CA” be acceptable? Salinas, California would be acceptable as it complies with state, regional or locality provisions. We export avocados from Michoacán, Mexico and we have the full address on the box. Is this all that we need? We also have the grower registration number on the box. You would need COO information, the address of the shipper is not enough. If you currently export product to the United States, under the Tariff Act, cartons and boxes holding imported fresh fruits and vegetables must bear a county of origin declaration as defined by CBP regulations. So chances are that you currently are labeling using country of origin information. How can countries of origin be abbreviated? Can they be abbreviated on labels and on the documents for recordkeeping too? The Agency’s policy is to follow CBP’s interpretation of the Tariff Act with regard to abbreviations. For further information see 19 C.F.R. Part 134. A standard list of abbreviations for all the countries should be used. Many computerized forms carry only certain amount of character spaces and having indeterminate lengths of character space needed will be frustrating. We suggest you provide comments to the IFR prior to September 30, 2008. Is produce planted before September 30 included in the new cool regulations? The COOL requirements do not apply to covered commodities produced (harvested) or packaged before September 30, 2008. We pack apples - our COOL labels must say where they are grown not just packed - correct? Yes, COO refers to where the apples are grown not packed. Does “Produce of USA” on the bag cover the requirements? Yes. Will suppliers be able to use old PLU stickers without COOL when box packed has “Product of USA?” Yes, PLU stickers are not required to label COO as long as information is provided in some form to the retailer. Our company labels all of its outbound cartons with country of origin. Are we required to also place a PLU sticker with labeling on each piece of fruit? No, the PLU sticker is not required to list COO. For clamshell packaging, like strawberries, does the place of origin need to be on the top label or can it be on the bottom with the UPC code? The regulation does not specify where the place of origin has to be as long as it is legible and in a conspicuous location. How about if you are shipping into USA from Canada would “Ontario cucumbers” be ok? Yes, the COO information can be by state, region or locality for perishable agriculture commodities and nuts. For product coming from Mexico as an example, will "produce of Mexico" be acceptable or will the city, state, and zip code overseas also be needed? For COOL, the address is not necessary as long as you provide the COO information. In addition, if you are exporting this product to the United States you would need to follow the CBP regulations under the Tariff Act for COO declaration. Most of our packaging states: Arvin, CA 93203, but its is not prefaced by "Produce of" or "Grown in". Are we still in compliance? Thank you. State designation is acceptable as long as it is the origin and not the place where the product is packaged. The “city of Arvin” would not be sufficient. Are bulk products required to have individual stickers with COOL marking? No, the information can be conveyed on the package or with the invoice or bill of lading as well. Does each fruit need a label, or will the label on the box be sufficient for a producer? (for example a box of tomatoes) Yes, a label of the box will be sufficient for COOL purposes. If we sell a bulk box of large mushrooms that has "Product of USA" on the box, however, retailers typically take the product out of the box for display. Is the grower/shipper responsible for the COOL at the retail display? No, the grower/shipper is only responsible for providing COO information to the retailer. Are commodities produced prior to 9/30/08 covered under regulations? No, only produce harvested after 9/30/08. We currently import product, but due to travel time, we are not sure if we need to start implementing product that was produced prior to 9/30. From the scenario presented, it appears that the product was in fact produced before 9/30 and therefore would not be covered under the regulation. Or do we have to label products supplied to retail establishments that were produced only after the date of 9/30? Yes. If a piece of fruit is sold individually instead of bagged or packaged, does it need a COOL label? If the piece of fruit is part of the bulk bin, then the bin will need to be labeled. The bin or the fruit may be labeled individually to satisfy the COO notification requirement to the consumer. If the shipper’s address on the outside of the box is the same as country or origin, does it then meet the requirements? The shipper's address is acceptable as long as it is the origin and not the place where the product is packaged. Some types of produce have state names as a part of the product name. For instance "Virginia Peanuts" which might be misleading if they were actually imported. Which regs would this fall under COOL or PACA? For COOL purposes, state, region and locality labeling is acceptable for COO information. (Peanuts are not subject to PACA.) When labeling a packed carton of individual fruits, does each piece of fruit require a label (i.e., PLU label) or is 80% sufficient if the carton is labeled appropriately? Individual labeling is not required, as the regulation allows a variety of ways to provide the information such as on transactional documentation or on the master container. The law does not provide for any percentage of tolerance in the labeling accuracy. Bag of peppers from two countries, both countries should be on the label? Yes, that is correct. Regarding sourced product: although majority of our company product is grown in California, seasonal shortages MAY or MAY NOT require sourcing from 3 other possible countries, so please confirm language should read "Product of USA, Country B, Country C or D". The origin declaration has to be definitive, you can not use “or”. The country of origin must be specific as to the source of the product when you pack it. If the product is from 3 countries then you should list the 3 countries for COO purposes. If it is only from 2 countries then you will only list those 2 countries for COO purposes. Just to confirm, packaging material that has been produced before 9/30 is exempt right? The regulation exempts commodities produced (harvested) prior to 9/30/08. Even though we provide COO on individual packages, some retailers are still requiring us to put the COO on the B/L, but it is my understanding the label on the package is sufficient. Is that correct? Yes, for COOL purposes. To clarify, if our customer's labels say "California Strawberries" are they then able to eliminate the phrase "Produce of USA" which they currently have on their label? Yes, state, region and locality labeling is acceptable for perishable agricultural commodities and covered nuts. If we ship multiple 5lb bags of a covered commodity that are pre-labeled with the country of origin), does the larger bag, which is being used for transporting these 5lb bags, need to be labeled with country of origin? No. Is it a law that all PLU stickers contain country of origin today? If not, why not? No, because COOL information can be provided several different ways to comply with the law. Is there a process to submit packaging for a determination as to whether product is or is not COOL compliant? No. Would packaging with a state or region logo qualify? As long as the state is identified, it may be used in conjunction with a logo. The logo itself without the state description would not be sufficient. What level of processing or handling would require a single covered commodity grown in country "A" and further handled in country "B", to include BOTH countries in its COOL record? Examples: rinsing, trimming, repackaging, sorting, etc. The COO information pertains to where the raw material was grown, so the covered commodity unless it qualifies as a processed item, would only need to list the country where the commodity was actually grown. The problem I see is that a supplier may institute a way to notify the retailer about the origin but each retailer may demand different types of notification and labeling. This could become an inventory nightmare. An issue like this would have to be worked out contractually. The law requires that suppliers must provide country of origin to the retailer, but does not define the exact requirements to do so. The documentation rule could be very challenging for suppliers and retailers using e-commerce produce portals like ITN. Most of us use a single item/SKU number for a product size (like 1# strawberries) regardless of the COO. The item description is mapped to the item master in the portal and there is no way to include COO info. An addendum to the law should require the produce portals to accommodate COO info without it being a manual entry process. The law does not demand how information must be provided. You may submit comments on this issue and/or work out the need for such information with the portal provider. What if we have chilies from Mexico and only wash and pack them into individual bags, how would this be labeled? It would be a product of Mexico. On a bin of pumpkins, can you check a “product of USA” box on the outside or do we need to have it on the individual pumpkins? Yes, the check box with product of USA on the box is sufficient as long as all the pumpkins are from the USA. You would not have to label each individual pumpkin. Does the PLU sticker (label) have to say Product of Peru or just Peru? Either one is fine for country of origin purposes. Would a tag "South Carolina Quality" be acceptable for origin labeling on packaging? No, the country of origin information must state were the product was grown not the quality designation. If a package of Birdseye Peas is labeled with the country of origin and the box the product is shipped in also has the country of origin, as a wholesaler am I required to list the country of origin on the retailers invoice, and to be able to trace back to the supplier the country of origin? The labeling of country of origin on the consumer ready pack is acceptable as long as there is documentation that will identify the supplier. However, the retailer may require you to provide this information on the BOL or invoice. Does bagged retail product (potatoes, apples, etc.) need to have the COO on each bag when it leaves the packer? Or is it sufficient to put the COO just on the BOL? Either way is sufficient as long as the retailer can rely on the information to provide country of origin information to the consumer. Would packaging with a state logo qualify if the logo contains the state or region name - for example, Idaho Potatoes or Washington Apple logos? As long as the state is identified, it may be used in conjunction with a logo. The logo itself without the state description would not be sufficient. An earlier answer stated that "May contain" may be used, but a latter answers stated that "OR" cannot be used (Mexico or Guatemala) Is not that the same as "may contain"? The country of origin must be specific as to the product if it is obtained from two different countries.
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