USDA Organic Certification: What Uncertified Importers Need to Know
Since the Strengthening Organic Enforcement (SOE) Final Rule took effect under the National Organic Program (NOP) in March 2024, entities across the organic industry have undergone major operational shifts to achieve and maintain compliance with the updated organic regulations. These updates have increased rigor at all levels of the supply chain and bolstered trust in the organic label, with perhaps the most impactful change being the requirement of mandatory certification for organic importers and exporters. And while the SOE Final Rule will drive lasting positive change, some organic supply chains are experiencing a difficult transformation if they are unable to import organic products into the US.
In this blog, SCS Global Services’ organic program experts will answer some of the most important questions related to the ongoing challenges facing organic importers. Plus, we’ll talk about what SOE means for importers who happen to be uncertified at this time. By discussing essential elements, definitions, and expectations of the SOE Final Rule, we'll equip you with everything you need to mobilize your company’s certification process under SOE — even if you are currently uncertified.
What is an organic importer?
Under SOE, an organic importer is defined as the operation responsible for accepting imported organic agricultural products within the United States. This role ensures NOP Import Certificate data are entered into the U.S. Customs and Border Protection import system of record.
How is an exporter different from an importer?
An exporter is defined as the final certified exporter of the organic agricultural product that facilitates the trade of, consigns, or arranges for the transportation or shipping of the organic agricultural product from a foreign country to the United States. An exporter is the entity that initiates the paperwork (NOP Import Certificate) that notifies United States Customs and Border Patrol of the incoming shipment of organic products through the importer.
What is an NOP Import Certificate?
An NOP Import Certificate is issued to the organic exporter by its certification body (CB), which verifies the organic status of the product contained in the shipment. NOP Import Certificates must be submitted by the importer to the United States Customs and Border Protection import system of record for all imported products regardless of origin. These certificates can be issued electronically by the exporter’s certifier using the Organic Integrity Database (OID), which means the certificate is issued upon exportation from the country of origin and not upon entry (import) to the destination country. These certificates may be issued for a single shipment or multiple shipments over a defined timeframe, up to a verified volume.
NOP Import Certificates include a review of the audit trail to verify organic status of the product exported to the United States. The certificate must include the following information: • Country of origin
• Destination country
• Name of issuing certifier
• Harmonized System (HS) code(s)
• Total weight of product
• 10-digit exporter ID
• Unique numerical identifier
What is the process to issue an NOP Import Certificate?
While some variations in process may occur depending on the specific exporting country and organic entity, the issuance of an NOP Import Certificate generally follows these steps:
1. The exporter initiates NOP Import Certificate request with their organic certification body.
2. Certifier of exporter verifies the shipment and issues certificate.
3. Exporter provides NOP Import Certificate to US importer.
4. Importer or customs broker enters data into the Customs and Border Protection's Automated Control Environment (ACE) System.
5. Product arrives at port of entry — this is where the shipment is accepted into the United States.
6. Importer verifies that the products received match the data provided on the certificate.
7. Certifier of importer audits accepted volumes of product.
8. NOP accesses CBP data to monitor for fraudulent activity.
What are the major impacts of SOE for organic importers?
SOE impacts organic importers in multiple, significant ways. For example, not only do importers and exporters of organic products have to be certified, but they must work directly with a USDA-accredited certifying agent. Like all certified organic entities, importers must also develop an Organic System Plan (OSP), part of which is the mandatory Organic Fraud Prevention Plan (OFPP). Once established, the organic importer must undergo an annual compliance audit. Additionally, NOP Import Certificates are required for all products being shipped to the United States. The stakes for complying with SOE are high: Shipments without proper documentation will be rejected at ports of entry, causing significant disruption along the organic supply chain.
What happens if I am an uncertified importer of organic products?
Major disruptions should be expected if an uncertified entity attempts to import organic products into the United States. Such disruptions mean that organic products cannot obtain customs clearance at the US border, and importers are prohibited from transacting organic products until they are certified, which can translate into serious business complications and even mandatory cessation of the ability to conduct business within the organic industry.
Under the SOE Final Rule, all organic entities are expected to have a baseline familiarity with the NOP regulations, the audit process and cycle, as well as a deeper understanding of traceability, identity preservation, and organic fraud prevention.
If these concepts and terms are unfamiliar to you, we encourage you to contact our experts as soon as possible. We can help uncertified importers of organic products better understand, prepare for, and earn organic certification under SOE.
Are there any exemptions under the new SOE?
Exemptions from SOE certification are now extremely limited, but some do exist. The following entities are considered exempt under SOE: Entities with gross sales under $5,000 annually, those handling products that contain less than 70% organic ingredients, distributors who only transact retail products in tamper-evident packaging, warehouses that store or prepare shipment products in tamper-evident packaging, and certain operations such as transportation companies, customs and logistics brokers, and some retail operations.
It’s important to note, though, that record keeping is mandatory even for entities that are exempt from SOE.
What should I do if I’m operating as an uncertified importer?
If you are currently uncertified, you should make plans to earn certification as soon as possible. Because enforcement for SOE is underway, every day that you operate without organic certification poses serious risks to your business.
The only means of earning certification is to work directly with an organic certification body. If you are involved in the trade of organic products, we recommend reaching out to our experts at SCS Global Services.
We’ve served as the preeminent certification body for the National Organic Program since 2000 and we encourage any importers in need of certification or support navigating and adapting workflows to remain compliant with SOE regulations to get in touch with us. At SCS, we are proud to act not only as a helpful source of knowledge and insight into all the technicalities of these important SOE updates, but also as a strategic partner helping companies navigate the often stressful and exhausting realities associated with inadvertently missing the implementation deadline for SOE.
Where can I learn more about organic importers and SOE?
In case you missed our SOE blog series last year, be sure to review these essential articles:
• Strengthening Organic Enforcement (SOE) Summary: Top Seven Changes to Watch as 2024 Deadline Nears
• Strengthening Organic Enforcement (SOE) – Top 8 Questions about Uncertified Operations and Missing the March 19, 2024 Deadline
• SOE Organic Fraud Prevention – What Every Business Needs to Know
Our webinar replay, Understanding the USDA’s New Strengthening Organic Enforcement Rule, offers a high-level overview of SOE and what to expect.
Companies can also turn to a number of resources to learn more, including the full summary of the Organic Trade Association’s SOE final rule, the Federal Register’s formal communications about the SOE amendment, and an official side-by-side comparison of the original organic program regulatory language and the new SOE rule.
If you think you’d benefit from dedicated, one-on-one expert support, please contact Ned Halaby at [email protected] or call +1.510.993.0235.
