Trade Law Daily is a service of Warren Communications News.

AMS Interim Final Rule for Mandatory Country of Origin Labeling for Certain Agricultural Goods

The Agricultural Marketing Service has issued an interim final rule1, effective September 30, 2008, requiring the mandatory country of origin labeling (COOL) for the following agricultural goods (collectively, covered commodities):

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

muscle cuts of beef (including veal), lamb, chicken, goat, and pork;

ground beef, ground lamb, ground chicken, ground goat, and ground pork;

perishable agricultural commodities;

macadamia nuts, pecans, and peanuts; and

ginseng.

(Note that the COOL regulatory requirements for wild and farm raised fish and shellfish are already in effect (and were published in the October 5, 2004 Federal Register).

The interim final rule contains definitions, the requirements for consumer notification and product marking, and the recordkeeping responsibilities of both retailers and suppliers for covered commodities.

Comments must be submitted on or before September 30, 2008.

Press Release on Interim Rule

According to an AMS press release, the following are highlights of the interim final rule:

covered commodities under COOL regulations 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;

definition of a processed food item under 7 CFR 65.220 is revised to provide additional clarity to as to items derived from a covered commodity that have undergone a physical or chemical change (e.g., cooking, smoking) or that have been combined with other covered commodities or other substantive food components (e.g., chocolate, tomato sauce) and are therefore excluded from COOL labeling;

recordkeeping retention requirements for suppliers, etc. are reduced to one year (instead of two years as originally proposed);

specific criteria that must be met for a covered commodity to bear a "U.S. country of origin" declaration are prescribed;

penalties for both suppliers and retailers found in violation of the law are up to $1,000 per violation.

Covered Commodities Produced or Packaged Before Effective Date Exempt

The requirements of this rule do not apply to covered commodities produced or packaged before September 30, 2008.

Interim Rule to Fulfill Requirements of Multiple Legislation

The Farm Security and Rural Investment Act of 2002 (2002 Farm Bill), the 2002 Supplemental Appropriations Act (2002 Appropriations), and the Food, Conservation and Energy Act of 2008 (2008 Farm Bill) amended the Agricultural Marketing Act of 1946 (AMA) to require retailers to notify their customers of the country of origin of certain covered commodities.

However, the implementation of mandatory COOL for all covered commodities, except wild and farm raised fish and shellfish, was delayed until September 30, 2008.

(See ITT's Online Archives or 05/31/02, 07/29/02, and 05/27/08 news, 02053115, 02072910, and 08052705, for BP summaries of these pieces of legislation, respectively.)

1AMS states that although the 2008 Farm Bill contains a number of provisions adding to the COOL provisions in the AMA, the implementation date of September 30, 2008 was not changed. Therefore, in order to meet the implementation deadline and to provide the newly affected industries the opportunity to provide comments prior to issuing a final rule, AMS is issuing this interim final rule.

- comments must be received by September 30, 2008

AMS contact - Erin Morris (202) 720-5131

(See future issues of ITT for BP summary of interim final rule.

See ITT's Online Archives or 06/22/07 news, 07062230, for BP summary of AMS reopening the comment period on its October 2003 proposed rule for mandatory COOL for beef, lamb, pork, perishable agricultural commodities, and peanuts.

See ITT's Online Archives or 06/21/07 news, 07062125, for BP summary of AMS' reopening the comment period on its October 2004 interim final rule which, effective April 4, 2005, required mandatory COOL for fish and shellfish covered commodities.)

AMS interim final rule (D/N AMS-LS-07-0081, FR Pub 08/01/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-17562.pdf

AMS press release (dated 07/29/08) available at http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateU&navID=Newsroom&page=Newsroom&resultType=Details&dDocName=STELPRDC5070943&dID=97066&wf=false&description=USDATakesActiononMandatoryCountryofOriginLabeling&topNav=Newsroom&leftNav=&rightNav1=&rightNav2=