2009 Cool Presentation


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The new and final release of COOL (Country Of Origin Labelling)

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2009 Cool Presentation

  1. 1. Country of Origin Labeling Agricultural Marketing Service
  2. 2. Scope of COOL <ul><li>Purpose </li></ul><ul><li>The intent of the law is to provide consumers with additional information on which they base their purchasing decisions. </li></ul><ul><li>To ensure the public receives credible and accurate information on country of origin of covered commodities. </li></ul>Agricultural Marketing Service
  3. 3. Delegation of Authority Agricultural Marketing Service
  4. 4. The COOL Program Agricultural Marketing Service AMS
  5. 5. Outreach Efforts <ul><li>Informational Sessions </li></ul><ul><ul><ul><li>Texas </li></ul></ul></ul><ul><ul><ul><li>Minnesota </li></ul></ul></ul><ul><ul><ul><li>California </li></ul></ul></ul><ul><li>Teleconferences </li></ul><ul><li>Guidance Materials: www.ams.usda.gov/cool </li></ul><ul><ul><ul><li>Talking Points </li></ul></ul></ul><ul><ul><ul><li>Questions and Answers </li></ul></ul></ul><ul><ul><ul><li>Brochures </li></ul></ul></ul><ul><ul><ul><li>Etc. </li></ul></ul></ul>Agricultural Marketing Service
  6. 6. Legislation and Related Activities Agricultural Marketing Service
  7. 7. Components of the Regulations <ul><li>Who Must Label </li></ul><ul><li>What Must be Labeled </li></ul><ul><li>Determining Origin </li></ul><ul><li>Notification & Labeling </li></ul><ul><li>Recordkeeping </li></ul><ul><li>Compliance and Enforcement </li></ul>Agricultural Marketing Service
  8. 8. Who Must Label? <ul><li>Retailers </li></ul><ul><li>Person licensed as a retailer under the Perishable Agricultural Marketing Act (PACA) </li></ul><ul><ul><ul><li>retailers handling fresh and frozen fruits and vegetables with an invoice value of at least $230,000 annually </li></ul></ul></ul>Agricultural Marketing Service
  9. 9. Exemptions <ul><li>Food Service Establishments </li></ul><ul><ul><li>Restaurants, </li></ul></ul><ul><ul><li>Cafeterias, </li></ul></ul><ul><ul><li>Lunch Rooms, </li></ul></ul><ul><ul><li>Food Stands, </li></ul></ul><ul><ul><li>Salad bars, </li></ul></ul><ul><ul><li>Delicatessens, and </li></ul></ul><ul><ul><li>Other food enterprises including those located within retail establishments that provide ready-to-eat foods </li></ul></ul>Agricultural Marketing Service
  10. 10. What Must be Labeled? Agricultural Marketing Service Initial Covered Commodities Muscle Cuts of Beef (including Veal) Ground Beef and Ground Veal Muscle Cuts of Lamb Ground Lamb Muscle Cuts of Pork Ground Pork Fish and Shellfish (wild & farm-raised) Perishable Agricultural Commodities (fruits & vegetables) Peanuts Additional Covered Commodities Muscle Cuts of Chicken Ground Chicken Muscle Cuts of Goat Ground Goat Pecans & Macadamia Nuts Ginseng
  11. 11. Processed Food Item <ul><li>The law excludes processed food items: </li></ul><ul><ul><li>Processed Food Item </li></ul></ul><ul><ul><li>Change of Character </li></ul></ul><ul><ul><ul><li>Cooking (frying, broiling, steaming, baking, roasting) </li></ul></ul></ul><ul><ul><ul><li>Curing (salt curing, sugar curing, drying) </li></ul></ul></ul><ul><ul><ul><li>Smoking (hot or cold) </li></ul></ul></ul><ul><ul><ul><li>Restructuring (emulsifying and extruding) </li></ul></ul></ul><ul><ul><li>2. Combined with Another Food Component </li></ul></ul>Agricultural Marketing Service
  12. 12. Processed Food Item <ul><li>Processed Food Items are NOT Covered Commodities </li></ul>Agricultural Marketing Service Examples of Processed Food Items Fish Sticks Teriyaki Flavored Pork Loin Sushi Roasted Peanuts Canned Tuna Breaded Chicken Tenders Corned Beef Brisket Fruit Medley
  13. 13. Determining Origin <ul><ul><li>Exclusive U.S. Origin </li></ul></ul><ul><ul><li>“ Product of the U.S.(A.)” </li></ul></ul><ul><ul><li>Meat </li></ul></ul><ul><ul><li>From animals born, raised, and slaughtered in the U.S. </li></ul></ul><ul><ul><li>From animals present in the U.S. on July 15, 2008 </li></ul></ul><ul><li>Fish and Shellfish </li></ul><ul><ul><li>Farm Raised: Hatched, raised, harvested, and processed in the U.S. </li></ul></ul><ul><ul><li>Wild: Harvested and processed – U.S. waters or by U.S. flagged vessel, and </li></ul></ul><ul><ul><li>No substantial transformation outside the U.S. </li></ul></ul><ul><li>PAC, Nuts and Ginseng </li></ul><ul><ul><li>Harvested in the U.S. </li></ul></ul>Agricultural Marketing Service
  14. 14. Determining Origin <ul><li>Multiple Country Origins </li></ul><ul><li>Commingling </li></ul><ul><ul><li>Covered commodities of the same type presented for retail sale to consumers that are from raw materials sources having different origins. </li></ul></ul><ul><ul><ul><li>Muscle Cuts of Meat </li></ul></ul></ul><ul><ul><ul><ul><li>Example: Package of rib eye steaks from “U.S., Canada, & Mexico” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Origin declaration takes into consideration the production steps of animals from which the meat is derived. </li></ul></ul></ul></ul><ul><ul><ul><li>Ground Meat </li></ul></ul></ul><ul><ul><ul><ul><li>Example: Package of hamburger from “U.S., New Zealand, Argentina, & Brazil” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Origin declaration takes into consideration all countries contained or reasonably contained therein. </li></ul></ul></ul></ul><ul><ul><ul><li>PAC, Nuts, and Ginseng </li></ul></ul></ul><ul><ul><ul><ul><li>Example: Display of tomatoes from “U.S. and Mexico” </li></ul></ul></ul></ul>Agricultural Marketing Service
  15. 15. Determining Origin <ul><li>Multiple Country Origins </li></ul><ul><li>Imported for Immediate Slaughter </li></ul><ul><ul><li>Meat derived from animals born and raised in Country X that have been imported into the U.S. for direct slaughter. </li></ul></ul><ul><ul><ul><li>Example: Pork roasts from “Canada and the U.S.” </li></ul></ul></ul><ul><ul><ul><li>Country X is always listed first in the origin declaration string of countries. </li></ul></ul></ul>Agricultural Marketing Service
  16. 16. Determining Origin <ul><li>Foreign Origin </li></ul><ul><li>Covered commodities imported into the U.S. shall have the origin as declared by U.S. Customs and Border Protection (CBP). </li></ul><ul><ul><li>Example: Lamb chops from “Australia” </li></ul></ul><ul><ul><li>Example: Macadamia nuts from “The Republic of South Africa” </li></ul></ul><ul><li>Commingling </li></ul><ul><ul><li>Example: Raw shrimp from “Thailand and China” </li></ul></ul>Agricultural Marketing Service
  17. 17. Notification and Labeling <ul><li>Country of Origin Declarations can be made on… </li></ul><ul><ul><ul><ul><li>Placard Sign </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Label Sticker </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Band Twist Tie </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Pin Tag Or other display </li></ul></ul></ul></ul><ul><li>Bulk containers may contain covered commodities from multiple origins and must be labeled accordingly </li></ul>Agricultural Marketing Service
  18. 18. Notification and Labeling <ul><li>Legible </li></ul><ul><li>Conspicuous Location </li></ul><ul><li>Limited Acceptable Abbreviations </li></ul><ul><li>Symbols and Flags Alone - NOT Acceptable </li></ul>Agricultural Marketing Service
  19. 19. Notification and Labeling Agricultural Marketing Service
  20. 20. Notification and Labeling Agricultural Marketing Serv ice
  21. 21. Notification and Labeling Agricultural Marketing Service
  22. 22. Recordkeeping <ul><li>Records must be legible </li></ul><ul><li>Maintained either electronic or hard copy format </li></ul><ul><li>Various forms of documents acceptable </li></ul><ul><li>May be maintained in any location </li></ul><ul><li>Retained for 1 year </li></ul>Agricultural Marketing Service
  23. 23. Transferring Origin Information <ul><li>Any person engaged in the business of supplying a covered commodity to a retailer, directly or indirectly </li></ul><ul><li>Information can be provided… </li></ul><ul><ul><li>On the product itself; </li></ul></ul><ul><ul><li>On the master shipping container or; </li></ul></ul><ul><ul><li>In a document associated with the transaction </li></ul></ul>Agricultural Marketing Service
  24. 24. Compliance and Enforcement <ul><li>Retail Surveillance Activities </li></ul><ul><li>1. Cooperative Agreements </li></ul><ul><li>2. Retail Reviews </li></ul><ul><li>3. Supplier Audits </li></ul><ul><li>Only USDA can initiate enforcement actions. </li></ul>Agricultural Marketing Service
  25. 25. Compliance and Enforcement <ul><li>Retail Reviews </li></ul><ul><li>2006-2008 </li></ul><ul><li>(fish and shellfish only) </li></ul><ul><li>4,816 retail reviews have been conducted in the last 3 years </li></ul><ul><ul><li>Developing a report to categorize non-compliances effectively to provide appropriate outreach efforts to industry. </li></ul></ul>Agricultural Marketing Service
  26. 26. Compliance and Enforcement <ul><li>2008 Retail Reviews </li></ul><ul><li>(fish and shellfish only) </li></ul><ul><li>2,000 retail reviews conducted </li></ul><ul><li>71% of retail stores in compliance </li></ul><ul><ul><ul><li>7% of reviews rated “Critical” </li></ul></ul></ul><ul><ul><ul><ul><li>>70% not labeled; no records </li></ul></ul></ul></ul><ul><ul><ul><li>8% of reviews rated “Major” </li></ul></ul></ul><ul><ul><ul><ul><li>31-69% not labeled; issues with records </li></ul></ul></ul></ul><ul><ul><ul><li>14% of reviews rated “Minor” </li></ul></ul></ul><ul><ul><ul><ul><li><30% not labeled </li></ul></ul></ul></ul>Agricultural Marketing Service
  27. 27. Compliance and Enforcement <ul><li>2008 Supplier Audits </li></ul><ul><li>(fish and shellfish only) </li></ul><ul><li>Supply chain information </li></ul><ul><ul><li>Country of Origin and Method of Production </li></ul></ul><ul><ul><ul><li>Initiator of the claim through to retail </li></ul></ul></ul><ul><ul><li>Conducted by USDA auditors </li></ul></ul><ul><ul><li>2% of Retail Reviews </li></ul></ul><ul><ul><ul><li>40 audits in 2008 </li></ul></ul></ul>Agricultural Marketing Service
  28. 28. Going Forward… <ul><li>Retail Surveillance Training for State Cooperators </li></ul><ul><li>COOL Enforcement </li></ul><ul><ul><li>Retail Reviews </li></ul></ul><ul><ul><li>Supplier Audits </li></ul></ul>Agricultural Marketing Service
  29. 29. Additional Information Agricultural Marketing Service Visit www.ams.usda.gov/COOL Submit questions To: [email_address]