Exporting Food to the United
States: What You Need to Know
Prepared for Panhellenic Exporters
Association Conference
December 9, 2014
Erik R. Lieberman
Overview
• Regulatory Requirements
• Landscape of U.S. Retail and Wholesale
Marketplace
• What U.S. Retailers and Wholesalers are
Looking for
• Opportunities to Promote Greek Exports
+1.202.765.1800
info@usfoodimports.com
2
About Us
• U.S. Food Imports LLC
– Customs brokerage
– Importer of record
– Foreign supplier compliance
• FDA
• USDA
• Customs
– Foreign supplier management
• Food safety verification
• Ethical sourcing verification
• Audit management
– Freight brokerage
+1.202.765.1800
info@usfoodimports.com
3
About Us
• Lieberman PLLC
– Focus on food law: USDA and FDA matters
– Food Safety Modernization Act (FSMA)
– Food trade law matters
– www.liebermanpllc.com
+1.202.765.1800
info@usfoodimports.com
4
Regulatory Requirements
• Regulatory requirements in the U.S. are
complex
• The Food Safety Modernization Act law
has made importing food even more
complication
• The U.S. Department of Agriculture and
Food and Drug Administration both
regulate food imports in the U.S.
+1.202.765.1800
info@usfoodimports.com
5
Importing Basics: What Agency
Regulates My Food?
• USDA regulates:
– Meat products
– Poultry products
– Processed egg products (e.g. liquid eggs)
– USDA must approve foreign country’s food
safety system as “equivalent” before exports
to U.S. are permitted
• FDA regulates all other foods
+1.202.765.1800
info@usfoodimports.com
6
Importing Basics: FDA
• Any facility that processes, packs or holds
human or animal food for consumption in
the U.S. must be registered with FDA
– Known as “Food Facility Registration”
– All foreign facilities must have a U.S. agent
who serves as a point of contact for FDA for
the facility
– All facilities must reregister every even
numbered year, and keep registration
information up to date continuously
+1.202.765.1800
info@usfoodimports.com
7
Importing Basics: FDA
• Food must be labeled to meet U.S.
requirements
• Ingredients contained within the food must
be generally recognized as safe or
otherwise approved
• Prior notice must be filed with FDA before
food arrives in the port
• But major new changes coming….
+1.202.765.1800
info@usfoodimports.com
8
Food Safety Modernization Act
(FSMA)
• Became law in 2011
• Most significant change to U.S. food law in more
than 70 years
• Requires importers to verify that production
practices in manufacturing plants and produce
farming practices meet stringent new U.S.
requirements
• Prohibits foreign companies from acting as the
importer of foods (e.g. nonresident importer),
instead an agent must be appointed if there is no
buyer or consignee at the time of entry
+1.202.765.1800
info@usfoodimports.com
9
New Regulations
Food Exporters to U.S Must Know
• Foreign Supplier Verification Program (FSVP)
• Accreditation of Third-Party Auditors
• Preventive Controls for Food for Humans
(and Animals)
• Produce Safety
• Food Defense
• Sanitary Food Transportation Act (certain
exporters)
+1.202.765.1800
info@usfoodimports.com
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Preventive Controls for Human
Food Summary
• Applies to U.S. and foreign facilities (that
process, pack and hold food for
consumption in U.S.)
• A written food safety plan must be
prepared and implemented for each
covered facility
• The written food safety plan must include:
– Written hazard analysis
– Written preventive controls
+1.202.765.1800
info@usfoodimports.com
11
Preventive Controls for Human
Food Summary (contd)
– Written procedures and frequency which they
are to be performed, for monitoring the
implementation of the preventive controls
– Written corrective action procedures
+1.202.765.1800
info@usfoodimports.com
12
Preventive Controls for Human
Food Summary (contd)
– Written verification procedures
– Written recall plan
• Supplier verification/product
testing/environmental monitoring required
for manufacturing facilities, not holding
facilities
+1.202.765.1800
info@usfoodimports.com
13
FSVP Regulation Summary
• Importers are required to:
– Conduct a hazard analysis for each food
imported
– Conduct foreign supplier verification and
related activities including:
+1.202.765.1800
info@usfoodimports.com
14
FSVP Regulation Summary (contd)
• Establishing and implementing procedures for
ensuring sourcing comes from approved suppliers
• Verifying that importer and customer of importer
adequately controls hazards within their control
+1.202.765.1800
info@usfoodimports.com
15
FSVP Regulation Summary (contd)
• Conduct foreign supplier verification and
related activities including:
– Verifying that foreign supplier adequately
controls hazards within their control through
activities such as:
• Auditing
• Lot-by-lot sampling and testing
• Review of foreign supplier’s food safety records
+1.202.765.1800
info@usfoodimports.com
16
Produce Safety Rule Summary
• Establishes minimum standards
for safe growing, harvesting,
packing and holding of produce
on farms
• Applies to both domestic and
imported produce
• Contains several exemptions
+1.202.765.1800
info@usfoodimports.com
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•
•
•
•
•
•
Produce Safety Rule Summary
(contd)
Worker training and health and
hygiene
Agricultural water
Biological soil amendments
Domesticated and wild animals
Equipment, tools and buildings
Sprouts
+1.202.765.1800
info@usfoodimports.com
18
U.S. Retail Landscape
• Consolidation is the trend
–Kroger acquires Harris Teeter
–Winn-Dixie merges with BI-LO
–Safeway acquired by Albertsons
• Chains are getting bigger
• But higher-end stores continue to
succeed
+1.202.765.1800
info@usfoodimports.com
19
U.S. Retail Landscape (contd)
• Whole Foods continues growth
• Trader Joe’s growing
–Organic food sales continue to
grow
–Private label increasingly important
• Generally more consumer
awareness of origins of food
+1.202.765.1800
info@usfoodimports.com
20
Foodservice Landscape
(Restaurant suppliers)
• More consolidation
–Sysco acquiring U.S. Foods
–Two largest foodservice
companies
–Still being scrutinized by the
government
+1.202.765.1800
info@usfoodimports.com
21
Challenges with Importing
• Retailers want the least amount of
inventory on hand while maintaining an
in stock position
• Container capacity and retailer needs
do not always match up
• If supplier has product at a forward
warehouse in North America it is often
best for retailers
– Retailer can draw off and pay for
inventory as needed
+1.202.765.1800
info@usfoodimports.com
22
Challenges with Importing
• With forward warehouse can co-ship multiple
brands/for multiple retailers to increase
efficiency
• Product dating—shipping time can consume a
lot of the code dating on a product
– Many retailers have minimum shelf-life criteria (e.g.
won’t accept products that have less than a 90-day
shelf- life)
• Private brands may lead to business from
retailer for an extended period of time
• Different retail cultures
+1.202.765.1800
info@usfoodimports.com
23
Opportunities for Imports
• U.S. consumers more aware of
quality and origin
• Retailers looking for unique and
exciting products
• Growth in higher end retail formats
• Strength of U.S. economy
• Diversity of U.S. consumer base
+1.202.765.1800
info@usfoodimports.com
24
Trade Show Opportunities in U.S.
• Fancy Food Show
• Private Label Manufacturers
Association Show (PLMA)
• International Dairy Deli Bakery Show
• Produce Marketing Association
Show
• Natural Products Expo
• National Restaurant Association
+1.202.765.1800
info@usfoodimports.com
25
Further Considerations
• Campaign in trade publications
–Restaurants
–Retail
• Event sponsorship
• Mechanism for protecting GIs in
U.S.
–Certification mark
+1.202.765.1800
info@usfoodimports.com
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Questions?
Thank you!
Erik Lieberman
elieberman@usfoodimports.com
+1.202.765.1800
+1.202.765.1800
info@usfoodimports.com
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