Proposed Rule Would Tighten “Product of the USA” Labeling

The US Food Safety & Inspection Service (FSIS) is proposing a rule that would tighten voluntary labeling of regulated produced with US origin claims. To leave a comment, go to https://www.regulations.gov/document/FSIS-2022-0015-0001. A previous deadline was in May, but due to a high volume of public comments, the deadline was extended to June 11th.

In 2022, the US imported 3.4 billion pounds of boxed beef and 1.6 million live cattle. 

Under current policy, imported meat can bear a “Product of the USA” label if it is repackaged at a USDA inspected plant. The proposed rule would close this loophole. The new rule would ensure that “Product of the USA” can only be used on meat, poultry, and eggs from animals born, raised, slaughtered, and processed in the US. The proposed rule would also apply to food products labeled, “Made in the USA.”

The move followed an executive order from President Joe Biden directing agencies to promote competition in the American Economy. On July 9th, 2021, in his executive order, President Biden wrote, "American farmers and ranchers are also getting squeezed by foreign corporations importing meat from overseas with labels that mislead customers about its origin. Under current labeling rules, meat can be labeled “Product of USA” if it is only processed here—including when meat is raised overseas and then merely processed into cuts of meat here. For example, most grass-fed beef labeled “Product of USA” is actually imported. That makes it hard or impossible for consumers to know where their food comes from and to choose to support American farmers and ranchers."

FSIS recently conducted a comprehensive review of the Agency's current voluntary “Product of USA” labeling policy to help determine what the “Product of USA” label claim means to consumers. FSIS started this review after receiving several petitions stating that the voluntary label claim “Product of USA” is confusing to consumers. By law, no product may bear any false or misleading label, such as labeling which conveys any false impression or gives any false indication of origin. FSIS' review of the policy included a consumer survey on “Product of USA” labeling on beef and pork products. The proposed rule followed this survey.

This proposed rule would also allow for U.S.-origin label claims other than the two authorized claims “Product of USA” and “Made in the USA.” All U.S.-origin label claims that are not authorized claims are known as “qualified claims.” These qualified claims would need to include a description on the package of all preparation and processing steps (including slaughter) that occurred in the United States upon which the claim is made. These would need to be positioned near the qualified claim and explain how the product compares to the regulatory criteria for use of the two authorized claims “Product of USA” and “Made in the USA.” For example, “Sliced and packaged in the United States using imported pork” could be a qualified claim. As with the two authorized claims “Product of USA” and “Made in the USA,” all qualified claims that meet the proposed regulatory requirements would be eligible for generic approval. The proposed rule would apply to domestic products. For product exported from the United States, FSIS would continue to verify that labeling requirements for the applicable country are met, as shown in the FSIS Export Library.