1. Exporting Food to the United States: What You Need to Know Prepared for Panhellenic Exporters Association Conference December 9, 2014 Erik R. Lieberman

2. +1.202.765.1800 info@usfoodimports.com Overview Regulatory Requirements Landscape of U.S. Retail and Wholesale Marketplace What U.S. Retailers and Wholesalers are Looking for Opportunities to Promote Greek Exports 2

3. +1.202.765.1800 info@usfoodimports.com About Us U.S. Food Imports LLC –Customs brokerage –Importer of record –Foreign supplier compliance FDA USDA Customs – Foreign supplier management Food safety verification Ethical sourcing verification Audit management –Freight brokerage 3

4. +1.202.765.1800 info@usfoodimports.com About Us Lieberman PLLC –Focus on food law: USDA and FDA matters –Food Safety Modernization Act (FSMA) –Food trade law matters –www.liebermanpllc.comwww.liebermanpllc.com 4

5. +1.202.765.1800 info@usfoodimports.com Regulatory Requirements Regulatory requirements in the U.S. are complex The Food Safety Modernization Act law has made importing food even more complication The U.S. Department of Agriculture and Food and Drug Administration both regulate food imports in the U.S. 5

6. +1.202.765.1800 info@usfoodimports.com Importing Basics: What Agency Regulates My Food? USDA regulates: –Meat products –Poultry products –Processed egg products (e.g. liquid eggs) –USDA must approve foreign country’s food safety system as “equivalent” before exports to U.S. are permitted FDA regulates all other foods 6

7. +1.202.765.1800 info@usfoodimports.com Importing Basics: FDA Any facility that processes, packs or holds human or animal food for consumption in the U.S. must be registered with FDA –Known as “Food Facility Registration” –All foreign facilities must have a U.S. agent who serves as a point of contact for FDA for the facility –All facilities must reregister every even numbered year, and keep registration information up to date continuously 7

8. +1.202.765.1800 info@usfoodimports.com Importing Basics: FDA Food must be labeled to meet U.S. requirements Ingredients contained within the food must be generally recognized as safe or otherwise approved Prior notice must be filed with FDA before food arrives in the port But major new changes coming…. 8

9. +1.202.765.1800 info@usfoodimports.com Food Safety Modernization Act (FSMA) Became law in 2011 Most significant change to U.S. food law in more than 70 years Requires importers to verify that production practices in manufacturing plants and produce farming practices meet stringent new U.S. requirements Prohibits foreign companies from acting as the importer of foods (e.g. nonresident importer), instead an agent must be appointed if there is no buyer or consignee at the time of entry 9

10. +1.202.765.1800 info@usfoodimports.com New Regulations Food Exporters to U.S Must Know Foreign Supplier Verification Program (FSVP) Accreditation of Third-Party Auditors Preventive Controls for Food for Humans (and Animals) Produce Safety Food Defense Sanitary Food Transportation Act (certain exporters) 10

11. +1.202.765.1800 info@usfoodimports.com Preventive Controls for Human Food Summary Applies to U.S. and foreign facilities (that process, pack and hold food for consumption in U.S.) A written food safety plan must be prepared and implemented for each covered facility The written food safety plan must include: –Written hazard analysis –Written preventive controls 11

12. +1.202.765.1800 info@usfoodimports.com Preventive Controls for Human Food Summary (contd) –Written procedures and frequency which they are to be performed, for monitoring the implementation of the preventive controls –Written corrective action procedures 12

13. +1.202.765.1800 info@usfoodimports.com Preventive Controls for Human Food Summary (contd) –Written verification procedures –Written recall plan Supplier verification/product testing/environmental monitoring required for manufacturing facilities, not holding facilities 13

14. +1.202.765.1800 info@usfoodimports.com FSVP Regulation Summary Importers are required to: –Conduct a hazard analysis for each food imported –Conduct foreign supplier verification and related activities including: 14

15. +1.202.765.1800 info@usfoodimports.com FSVP Regulation Summary (contd) Establishing and implementing procedures for ensuring sourcing comes from approved suppliers Verifying that importer and customer of importer adequately controls hazards within their control 15

16. +1.202.765.1800 info@usfoodimports.com FSVP Regulation Summary (contd) Conduct foreign supplier verification and related activities including: –Verifying that foreign supplier adequately controls hazards within their control through activities such as: Auditing Lot-by-lot sampling and testing Review of foreign supplier’s food safety records 16

17. +1.202.765.1800 info@usfoodimports.com Produce Safety Rule Summary Establishes minimum standards for safe growing, harvesting, packing and holding of produce on farms Applies to both domestic and imported produce Contains several exemptions 17

18. +1.202.765.1800 info@usfoodimports.com Produce Safety Rule Summary (contd) Worker training and health and hygiene Agricultural water Biological soil amendments Domesticated and wild animals Equipment, tools and buildings Sprouts 18

19. +1.202.765.1800 info@usfoodimports.com U.S. Retail Landscape Consolidation is the trend –Kroger acquires Harris Teeter –Winn-Dixie merges with BI-LO –Safeway acquired by Albertsons Chains are getting bigger But higher-end stores continue to succeed 19

20. +1.202.765.1800 info@usfoodimports.com U.S. Retail Landscape (contd) Whole Foods continues growth Trader Joe’s growing –Organic food sales continue to grow –Private label increasingly important Generally more consumer awareness of origins of food 20

21. +1.202.765.1800 info@usfoodimports.com Foodservice Landscape (Restaurant suppliers) More consolidation –Sysco acquiring U.S. Foods –Two largest foodservice companies –Still being scrutinized by the government 21

22. +1.202.765.1800 info@usfoodimports.com Challenges with Importing Retailers want the least amount of inventory on hand while maintaining an in stock position Container capacity and retailer needs do not always match up If supplier has product at a forward warehouse in North America it is often best for retailers –Retailer can draw off and pay for inventory as needed 22

23. +1.202.765.1800 info@usfoodimports.com Challenges with Importing With forward warehouse can co-ship multiple brands/for multiple retailers to increase efficiency Product dating—shipping time can consume a lot of the code dating on a product –Many retailers have minimum shelf-life criteria (e.g. won’t accept products that have less than a 90-day shelf- life) Private brands may lead to business from retailer for an extended period of time Different retail cultures 23

24. +1.202.765.1800 info@usfoodimports.com Opportunities for Imports U.S. consumers more aware of quality and origin Retailers looking for unique and exciting products Growth in higher end retail formats Strength of U.S. economy Diversity of U.S. consumer base 24

25. +1.202.765.1800 info@usfoodimports.com Trade Show Opportunities in U.S. Fancy Food Show Private Label Manufacturers Association Show (PLMA) International Dairy Deli Bakery Show Produce Marketing Association Show Natural Products Expo National Restaurant Association 25

26. +1.202.765.1800 info@usfoodimports.com Further Considerations Campaign in trade publications –Restaurants –Retail Event sponsorship Mechanism for protecting GIs in U.S. –Certification mark 26

27. +1.202.765.1800 info@usfoodimports.com Questions? Thank you! Erik Lieberman elieberman@usfoodimports.com +1.202.765.1800 27