Confusion Arising from Strengthened U.S. Organic Certification – Jay Lee’s U.S. Report (123)

Confusion Over Stricter U.S. Organic Certification – Jay Lee’s U.S. Report (123)

All Manufacturers & Importers Must Obtain an Import Certificate for Every Shipment

Brokers & Exporters Previously Exempt Must Now Be Certified

Effective March 19, 2024 – Strengthening Import Transparency & Traceability

Must Report to CBP’s Automated Commercial Environment (ACE) System

USDA Organic Certification Generated from the National Organic Program (NOP) Database

△ Jongchan Lee, CEO of J&B Food Consulting

The U.S. Department of Agriculture (USDA) recently announced a final rule for the Strengthening Organic Enforcement (SOE) regulations, requiring all manufacturers and importers selling USDA-certified organic products to obtain an organic import certificate (USDA Organic Import Certificate) for every shipment before clearing U.S. customs.

This new regulation, effective March 19, 2024, is expected to cause significant confusion among businesses. While the USDA had given years of prior notice, companies that have not properly prepared may experience disruptions in organic product imports.

Why Did the USDA Implement This Rule?

The new SOE regulation was introduced due to increasing organic imports and concerns that foreign organic certification standards are often less strict than those in the U.S. This has led to fraud risks and loopholes in the system. The goal is to enhance transparency and traceability of organic imports.

One key change is that brokers, exporters, and traders—who were previously exempt from certification—must now obtain organic certification under the new rule.

How Does the New Organic Import System Work?

Under the SOE final rule, all imported organic products must be reported in the U.S. Customs and Border Protection (CBP) Automated Commercial Environment (ACE) system using data provided in the National Organic Program (NOP) Import Certificate.

The NOP Organic Import Certificate is generated from the NOP Organic Integrity Database (INTEGRITY), which serves as a registry for certified organic operations. This system allows certifiers to systematically track and document compliance levels across all certified organic operations.

Strengthened Fraud Prevention & Traceability Requirements

To prevent fraud and improve traceability, all stakeholders in the supply chain— from production to sales and transportation—must maintain records of every transaction. These records must track organic products back to the last certified entity in the supply chain and clearly identify organic agricultural products.

Additionally, organic certifiers are now responsible for:

Identifying high-risk operations and products

Conducting risk-based supply chain traceability audits to monitor product movement along the supply chain

On-Site Inspections & Surprise Audits

To prevent fraud, the USDA will implement on-site inspections and unannounced audits. Inspectors must perform in-out balance audits and trace-back audits during all annual inspections:

In-Out Balance Audits verify that the volume of organic products produced or purchased matches the amount used, stored, sold, or transported.

Trace-Back Audits track organic products from the point of purchase through production, sales, and transportation to ensure authenticity.

With surprise inspections, the USDA aims to prevent manipulation of records and fraudulent use of non-organic ingredients.

Given the high volume of Korean organic exports to the U.S., companies must implement strict compliance and oversight to maintain trust under the new U.S. organic certification system.

#OrganicCertification #USDA Feel free to contact us

jay@jnbfoodconsulting.com or 714-873-5566

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