MCOOL Update

The Mandatory Country Of Origin Labeling (MCOOL) Rule was passed as part of the 2008 Farm Bill and became law on May 22, 2008. It was since revised, and the final rule became effective as of March 16, 2009.

During the 6-month period following the effective date of the regulation, USDA's Agricultural Marketing Service (AMS) will conduct an industry education and outreach program concerning the provisions and requirements of this rule. This AMS plan of outreach and education should significantly aid the industry in achieving compliance with the requirements of the rule.

Processed Food Item - Processed food items are exempted from labeling by the statute.

Processed food item means: a retail item derived from a covered commodity that has undergone specific processing resulting in a change in the character of the covered commodity, or that has been combined with at least one other covered commodity or other substantive food component (e.g., chocolate, breading, tomato sauce), except that the addition of a component (such as water, salt, or sugar) that enhances or represents a further step in the preparation of the product for consumption, would not in itself result in a processed food item. Specific processing that results in a change in the character of the covered commodity includes cooking (e.g., frying, broiling, grilling, boiling, steaming, baking, roasting), curing (e.g., salt curing, sugar curing, drying), smoking (hot or cold), and restructuring (e.g., emulsifying and extruding).

Examples related to this exemption would be meatloaf, meatballs, fabricated steak, breaded veal cutlets, corned beef, sausage, breaded chicken tenders, and teriyaki flavored pork loin; a salad mix that contains lettuce and a dressing packet, a salad mix that contains lettuce and carrots, a fruit cup that contains melons, bananas, and strawberries; and roasted peanuts.

U.S. Origin – Perishable agricultural commodities, pecans, ginseng, peanuts, and macadamia nuts must be produced (grown) in the United States; beef, lamb, pork, chicken, and goat must be derived exclusively from animals (1) born, raised, and slaughtered in the United States (including animals born and raised in Alaska and Hawaii and transported for a period of time not more than 60 days through Canada to the United States and slaughtered in the United States); or (2) present in the United States on or before July 15, 2008, and once present in the United States, remained continuously in the United States.

Labeling Muscle Cut Covered Commodities of Multiple Countries of Origin that include the United States – If an animal was born, raised, and/or slaughtered in the United States and was not imported for immediate slaughter, the origin of the resulting meat products derived from that animal may be designated as Product of the United States, Country X, and/or (as applicable) Country Y where Country X and Country Y represent the actual or possible countries of foreign origin.

If an animal was imported into the United States for immediate slaughter, the origin of the resulting meat products derived from that animal shall be designated as Product of Country X and the United States.

In both of the cases above, the origin declaration may include more specific information related to production steps provided records to substantiate the claims are maintained and the claim is consistent with other applicable Federal legal requirements.

Labeling Imported Covered Commodities - Imported covered commodities for which origin has already been established as defined by this law (e.g., born, raised, slaughtered or grown) and for which no production steps have occurred in the United States, shall retain their origin, as declared to U.S. Customs and Border Protection (CBP) at the time the product entered the United States, through retail sale.

Labeling Commingled Covered Commodities - In the interim final rule, a commingled covered commodity is defined as a single type of covered commodity (e.g., frozen peas), presented for retail sale in a consumer package, that has been prepared from raw material sources having different origins. Further, a commingled covered commodity does not include ground meat products. If the retail product contains two different types of covered commodities (e.g., peas and carrots), it is considered a processed food item and is not subject to mandatory COOL.

Labeling Ground Beef, Ground Pork, Ground Lamb, Ground Goat, and Ground Chicken - The declaration for ground beef, ground pork, ground lamb, ground goat, and ground chicken covered commodities shall list all countries of origin contained therein or that may be reasonably contained therein. In determining what is considered reasonable, when a raw material from a specific origin is not in a processor’s inventory for more than 60 days, that country shall no longer be included as a possible country of origin.

Remotely Purchased Products (e.g., Internet sales) - Retailer may provide country of origin information on the sales vehicle (e.g., Internet site) or at the time the product is delivered to the consumer.

Retail Notification to the Consumer - The label must be in a conspicuous location and legible to allow consumers to identify the country(ies) of origin. Retailers may commingle covered commodities from more than one country of origin provided all possible origins are listed.

Recordkeeping - Records and other documentary evidence relied upon at the point of sale by the retailer to establish a covered commodity’s country(ies) of origin must be maintained for one year from the date the origin declaration is made at retail. Upon request, these records must be provided to any duly authorized representatives of USDA within 5 business days of the request and may be maintained in any location. For pre-labeled products, the label itself is sufficient evidence on which the retailer may rely to establish the product’s origin. Retailers must maintain records that identify the covered commodity, the retail supplier, and for products that are not pre-labeled, the origin information, for 1 year after a label claim is made.

Retail suppliers must maintain records to establish and identify the immediate previous source (if applicable) and immediate subsequent recipient of a covered commodity for a period of 1 year from the date of the transaction. Upon request, these records must be provided to any duly authorized representatives of USDA within 5 business days of the request and may be maintained in any location.

For an imported covered commodity, the importer of record as determined by CBP, must ensure that records:  provide clear product tracking from the United States port of entry to the immediate subsequent recipient and accurately reflect the country(ies) of origin of the item as identified in relevant CBP entry documents and information systems; and maintain such records for a period of 1 year from the date of the transaction.

State and Regional Labeling Programs - These marketing programs (e.g., Alaskan salmon, “Go Texan”) are not affected by this rule. For domestic and imported perishable agricultural commodities, macadamia nuts, peanuts, pecans, and ginseng, state, regional, or locality label designations are acceptable in lieu of country of origin labeling. State-level country of origin labeling programs that encompass commodities that are governed by this regulation are preempted.

For more information, and to view the full rule, click here.

Source: USDA