The proposed country of origin labeling requirement for seafood continues to cause a lot of problems and uncertainty. The scheduled implementation date is September 30. Retailers are continuing to pressure suppliers to comply with requirements as spelled out in the proposed rule, threatening to pull product off the shelf if it does not comply. Some retailers and distributors have set dates by which they will no longer accept product that does not comply with the proposed regulation.
Retailers are concerned because they could face fines of up to $10,000 per non-compliant can. However, suppliers are in a quandary because it would not be prudent to change labels to conform with provisions of a proposed regulation because it’s quite probable the requirements will change somewhat when the regulations become final. Many retailers are requiring suppliers to sign letters of indemnification against any fines that may occur from non-compliant merchandise.
Some key points about the COOL Regulation:
· A final rule is expected within the next several weeks.
· USDA said it recognizes the supply chain problems the regulation’s implementation date causes and that compliance enforcement will be addressed in the final rule. A USDA spokesman has told some people in the industry he expects enforcement will begin one year after publication of the final rule.
AFI is continuing to monitor developments on this issue and will send detailed information on the final rule once it is published.
