Milling & Baking News - October 20, 2020 - 16

Washington

NAMA suggests changes to proposed
rule update for organic trade
WASHINGTON - The North American Millers' Association on Oct. 5, with
the support of the National Grain and
Feed Association, raised objections to
certain import certification requirements contained within the National
Organic Program: Strengthening Organic Enforcement rule proposed by
the US Department of Agriculture's
National Organic Program (NOP). Specifically, NAMA asserted a 30-day time
frame for certifying agents to review
and approve an NOP import certificate
is not workable for the grain milling
industry.
"We support the intent of the proposed rule to further curtail fraudulent activities within the organic market," said Jane DeMarchi, president of
NAMA, in comments submitted to the
NOP. "However, we are concerned that
this proposed rule would have damaging unintended consequences on trade
between the United States, Mexico and
Canada due to the conflict between the
speed of commerce in North America
and the framework laid out in this proposal for import certificates."
Ms. DeMarchi noted the existing
framework for import certificates only
requires certificates for imports from
six countries, all of which are overseas,
and that information on shipping containers, vessels/voyages and quantity
typically is determined days or weeks
before a vessel leaves port.
"In contrast, timelines and overall
logistics of the proposed regulations
do not translate to truck and/or rail
trade from contiguous countries," Ms.
DeMarchi explained.
"Trailer numbers are often unknown
until arrival for loading," Ms. DeMarchi said. "The quantity of a commodity
or ingredient departing a farm or facility in Canada is finalized when loading is complete, sometimes only hours
before the product arrives at the border. The 30-day time frame for certifying agents to review and issue a NOP
import certificate is not appropriate for
the grain milling industry."
Ms. DeMarchi said as written, the
proposed rule would give the certifier
30 days to issue a certificate, but the
importer must upload the certificate
to the US Customs and Border Patrol
(CBP) Automated Commercial Environment (ACE) within 10 days of organic product crossing the border.
"Trucks cross the border within approximately two days of departure,
16 / October 20, 2020

Milling & Baking News

and oftentimes sooner," Ms. DeMarchi
said. "Product could arrive at the US
recipient without the required documentation, and the exporter 's certifier would still have 28 days
to issue the import certificate. However, the recipient would only have 10
days to upload it. This
misalignment of timelines
will put undue burden on
the recipient, despite the fact
that they have no control or influence
on the issuance of the certificate by the
exporter 's certifier."
When product arrives before the import certificate is issued, recipients will
have to either segregate or hold products until import certificates are available or take the risk of accepting the

'We are concerned that
this proposed rule would
have damaging unintended
consequences on trade
between the United States,
Mexico and Canada.'
- Jane DeMarchi,
North American Millers' Association

product without the import certificate,
Ms. DeMarchi added.
"Grain handling infrastructure and
logistics are not set up for delays and
holds of this type," she said. "Logistics of holding truckloads and railcars
of commodities are extremely challenging and prohibitively expensive."
Ms. DeMarchi said certifier capacity
also is a major concern.
"Currently, most customers in the
United States do not require organic
import documentation of the type
described in the proposed rule from
Canadian suppliers," she said. "For
many, this is due to familiarity with
suppliers and the existing equivalency
arrangements. Under this proposed
rule, a single pallet or bag of an organic product on a truck of wholesale
ingredients or retail products would
require an import certificate. Based on
our member experiences, we are not
at all confident that the Canadian certifiers will be able to go from issuing
trivial numbers of export documents
for US-bound shipments to issuing
tens of thousands (conservatively) on
an annual basis, particularly not in the

short time frames needed to support
uninterrupted trade."
NAMA suggested modifications to
the NOP Import Certificate based on
the primary mode of transport.
"Truck and rail transport should be
eligible for multi-shipment certificates,
similar to the 'Multi-Shipment Transaction Certificate' used by the
Global Organic Textile Standard (GOTS)," Ms. DeMarchi said. "This proven system has similar traceability
expectations and is applied
to commodities traded in
large volumes. This suggests
a similar system would be a workable
solution for imports from contiguous
North American trade partners."
Ms. DeMarchi said it also would be
useful to provide an allowance for preapproved suppliers. She said disclosure and review of planned suppliers
to the certifiers would result in a preapproval. This could be limited to a set
time period, volume of product, and a
specific list of products, and would remove the need for an import certificate
when buying from the established supplier. This information then would become part of the supply chain verification requirements for the certifier. Import certificates still would be required
from new suppliers or when not included in the pre-approval framework
(i.e., additional volume, new products,
etc.), preserving the transparency and
traceability of organic supply chains.
"Lastly, we request delayed enforcement with a phased implementation
of the import certificate requirement
for imports via truck and rail," Ms.
DeMarchi said. "This will allow additional time for adequate hiring of staff
by certified operations and certifiers,
development of electronic submission
tools, and robust testing of the ACE
system."
Delayed implementation for truck
and rail imports would allow time for
the system to first adapt to the higher
volume of sea imports from additional
countries.
"We propose delayed implementation by at least a year for rail imports and at least two years for truck
imports," Ms. DeMarchi said. "This
would create a gradual increase in
system use. Ideally, this delay would
also allow time for NOP development
and support of a system similar to the
FDA Import Trade Auxiliary Communication System (ITACS) to check the
status of the import certificate after it
is requested and/or for submission of
import certificate requests." MBN
bakingbusiness.com / world-grain.com


http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - October 20, 2020

Table of Contents for the Digital Edition of Milling & Baking News - October 20, 2020

Milling & Baking News - October 20, 2020 - 1
Milling & Baking News - October 20, 2020 - 1
Milling & Baking News - October 20, 2020 - 2
Milling & Baking News - October 20, 2020 - 3
Milling & Baking News - October 20, 2020 - 4
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