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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:
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Basmati
rice is on automatic detention list but we can take exemption from this.
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Importer’s
name is not compulsory but only a commercial decision.
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Preservatives
are listed on FDA website.
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Natural
colour codes can be mentioned.
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Quotas on
peanuts are administered by USFTR.
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Where
samples are sent by exporters to buyers which are paid for, invoice
should be retained for the purpose of claiming trademark.
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Where US
brands are similar to Indian brands, search should be made with USPTO
about pending Trademarks. Logos, coloration, spelling can be different.
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Product
Liability Insurance is extensively used in US.
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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.
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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."
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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. |
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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). |
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FDA
Registrar Charges
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$595
for 1st year registration and $ 445 for 2nd year updating.
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$995
to $ 2995 for Prior Notice fees.
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$995
for labeling for review. For additional labels discount is offered
(added value ingredients information).
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$1900
Management fee for unlimited filing for 1st year. $995 for 2nd year.
No hourly rates are charged.
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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. |
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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
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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.
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The demand for Organic Food
Products is growing because they are safe and environment friendly and
support small businesses. They fetch premium prices.
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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.
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Bio-Terrorism Act has been
effective from 12.12.2003. Misbranding amounts to bad labeling.
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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.
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"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). |
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