The United States Department of Agriculture (USDA) aims to improve consumer trust in organic labels with the implementation of the Strengthening Organic Enforcement (SOE) rule within the National Organic Program (NOP), set for today, March 19, 2024. The changes target various aspects of organic labeling, including exemptions, import certificates, traceability, personnel qualifications, inspections, and compliance procedures.
Under the new SOE rule, a significant shift occurs, requiring the certification of any operation that produces or handles organic products. The handling of an organic product includes any person who processes, trades, exports, imports, or facilitates the sale or trade of an organic product, unless exempt. Notably, exports must be accompanied by import certificates issued by the operation’s organic certification agency. Moreover, inspectors are now required to conduct trace-backs and mass balances to improve recordkeeping and traceability practices. To combat fraud, the new regulations allow better identification of fraudulent organic certificates and empower the NOP to initiate enforcement actions against violators, including uncertified operations and connected parties.
RECOMMENDATIONS FOR DOMESTIC AND FOREIGN ALCOHOL MANUFACTURERS AND IMPORTERS IN THE ORGANIC SECTOR
Alcohol manufacturers and importers involved in or considering entry into the organic sector should take the following steps:
- Review regulations and determine if becoming a certified organic operation is required.
- Ensure organic ingredients are sourced from certified suppliers.
- Confirm contract manufacturing partners hold organic certifications.
- Align recordkeeping procedures with traceability rules in connection with nonretail containers in storage.
- Update bulk labels to include “organic” along with the product name.
- Stay updated on the new USDA organic rules.
HOW DO ALCOHOL MANUFACTURERS BECOME A CERTIFIED ORGANIC OPERATION?
To become a certified operation, an applicant must select a USDA-accredited certifying agent, and submit an application and fees to the certifying agent. Upon review of the application and an on-site inspection of the applicant’s operation, the certifying agent will issue an organic certificate if it determines that the applicant has complied with the USDA organic regulations. Certified operations must undergo an annual review and inspection process to maintain certification.
HOW AN ATTORNEY CAN HELP
Alcohol manufacturers may benefit from hiring an attorney with extensive experience representing businesses in the alcohol beverage industry who can assist alcohol manufacturers in navigating the new USDA’s organic requirements, ensuring compliance with federal, state, and local alcohol laws, and facilitating the certification process for organic products.