Seminars on Food Exports to US

FIEO organized a series of seminars on "Opportunities and Challenges for Food Exporters to US" at Delhi, Mumbai and Kolkata on alternate days beginning 21st January. Vice President of FDA Registrar Corp. Mr. David Lennarz joined the seminars at all the three locations.

At Delhi, while explaining the current requirements of US Food & Drug Administration, Mr. Lennarz said: "Indian manufacturers have enough potential to tap US food market provided they adhere to the basic requirements of FDA regulations." He detailed out the requirements of Bioterrorism Act, Food Labeling, Canned Food Registration Laws etc. that Indian food exporters are expected to abide by while exporting to US. Mr. Lenenrz advised that Indian exporters should focus US market for specialty food and organic items.

Earlier, FIEO’s Northern Region Chairman Dr. R K Dhawan said that the developed countries were adopting very stringent food safety standards and regulations mandating more and more certification and traceability requirements making it almost difficult for the developing countries to export food products to countries like US. Developing countries are forced to bear heavy costs of compliance for meeting the additional requirements of food safety regulations and standards, he added.

FIEO Director General Mr. Ajay Sahai echoed the concerns made by Dr Dhawan saying that despite huge potential, India’s exports to the US were not picking up for the technical requirements in US were too high for the Indian exporters to meet.

At Mumbai, Mr. Lennarz made a power-point presentation and explained issues relating to export of food products to US such as products preferred by American consumers, their distribution mechanism in US, existing distribution channels for Indian food products in US etc. During interaction with the participants, Mr. Lennarz made following observations:

  • Basmati rice is on automatic detention list but we can take exemption from this.

  • Importer’s name is not compulsory but only a commercial decision.

  • Preservatives are listed on FDA website.

  • Natural colour codes can be mentioned.

  • Quotas on peanuts are administered by USFTR.

  • Where samples are sent by exporters to buyers which are paid for, invoice should be retained for the purpose of claiming trademark.

  • Where US brands are similar to Indian brands, search should be made with USPTO about pending Trademarks. Logos, coloration, spelling can be different.

  • Product Liability Insurance is extensively used in US.

  • Where only process changes, there is no need to inform FDA. Only when products change, FDA should be informed. But manufacturing process filing within 30 to 60 days should be made.

  • For open market purchases from those companies whose public data is not available, own number can be substituted.

At Kolkata, Mr. Lennarz said: "Despite having wide variety of produce in agricultural and processed food sector; only 4371 Indian companies are registered with US FDA whereas countries like Vietnam, Korea, China and Japan have far more companies registered with it, as a result of which, exports of seafood and food products from these countries to the US have increased substantially in the past."

Speaking further, Mr. Lennarz stressed on packaging and said it should be attractive to the eyes of the consumers and must contain all the details, such as ingredients and nutritional value, in the labels as desired by the FDA. In the recent times, said he, many Indian items viz. custard powder, jelly crystals, biscuits, energy drinks, tamarind candy, etc. have been refused clearance by the US authorities for not meeting prescribed packaging norms. He advised the exporters to keep a track on the items rejected by FDA and the grounds thereof by visiting its website to avoid similar situations.

Dr.R K Dhawan, Chairman, FIEO (NR) 2nd from left addressing the meeting. On his left are, Mr. David Lennarz, Vice President, FDA Registrar Corp. USA; Mr. Ajay Sahai, Director General, FIEO. At extreme left is Mr. Sunil Agnihotri, Director,FIEO(NR).

FDA Registrar Charges

  • $595 for 1st year registration and $ 445 for 2nd year updating.

  • $995 to $ 2995 for Prior Notice fees.

  • $995 for labeling for review. For additional labels discount is offered (added value ingredients information).

  • $1900 Management fee for unlimited filing for 1st year. $995 for 2nd year. No hourly rates are charged.

  • No pre-market approval work is done by FDA Registrar.

Manufacturer exporters may directly register themselves with US FDA. Merchant exporters are required to provide the details of manufacturers.

Mr. S Jamati, DDG, FIEO(WR) addressing the meeting. On his left are Mr. S K Saraf, Chairman, FIEO(WR); Mr. David Lennarz; Mr. P Naga, India Representative of FDA Registrar Corp.

Lennarz informs

  • 58% of all US consumers purchase Specialty Foods. Especially consumers of age group 25-54 are motivated by perceived value such as self-indulgence, integrity, health, gift-ability, cachet, appearance. Appearance and uniqueness are important.

  • The demand for Organic Food Products is growing because they are safe and environment friendly and support small businesses. They fetch premium prices.

  • Less than 2% consignments are inspected due to limited manpower, mainly first time shippers or those who have come to adverse notice earlier. As more and more shipments are made, chances of inspection are reduced.

  • Bio-Terrorism Act has been effective from 12.12.2003. Misbranding amounts to bad labeling.

  • Registered trademark can be used only if the trade mark is registered both in India as well as in US, as per USPTR. If not registered in both countries and if the trademark is only applied for registration, then TM can be used which puts public on notice that you don’t own it. Expiry dates are must. Julian code is equivalent to lot No. LACF is factory approval.

  • Food products can be re-exported to third countries if refused by USFDA.

"India’s food processing industry is one of the largest in respect of production, consumption, export and import. West Bengal is one of the front runner states in food production. The state produces 30% of the country’s potatoes, 27% pineapples, 12% bananas and 16% of rice. With six agro-climatic zones, wide variety of fruits and vegetables are grown in abundance, According to the statistics, West Bengal is the largest producer of rice, pineapple, vegetables and fruits, meat in the country. It is also the second largest producer of potatoes and lychees."

Mr. S K Jain

Chairman, FIEO (Eastern region)

Mr. David Lennarz (centre) addressing the meeting. On his right is Mr. S.K.Jain and Mr. Tapan Chattopadhyay, DDG,FIEO(ER).

 


Federation of Indian Export Organisations
New Delhi, INDIA.