TerraLex Cross-Border Guide to Cross-Border Food & Beverage Guide

Yes

The United States Food and Drug Administration (FDA) regulates the manufacturing, packaging, and labeling of food. Food is defined as articles used for food or drink, chewing gum, and articles used for components of those articles (e.g. food additives). With certain exceptions, dietary supplements are considered food.

The Federal Trade Commission (FTC) regulates the advertising, including infomercials, of dietary supplements and most other products sold to consumers. FDA works closely with FTC in this area, but FTC’s regulation is directed by different laws.

The United States Department of Agriculture (USDA) is responsible for regulating meat and poultry, processed egg products, and catfish, whereas the FDA oversees food safety for fresh eggs and almost all other foods.

The FDA and the Environmental Protection Agency (EPA) are both responsible for the safety of drinking water. EPA regulates public drinking water (tap water), while FDA regulates bottled drinking water.

Additionally, state public health departments and other local food safety agencies regulate the sale of adulterated, misbranded and falsely labeled foods and food products.

The Federal Food, Drug, and Cosmetic Act, as amended (FDCA) and implementing regulations, as amended.

The FDA Food Safety Modernization Act (FSMA), as amended and implementing regulations.

The Federal Trade Commission Act, as amended (FTC Act) and implementing regulations, as amended.

The Federal Meat Inspection Act, as amended and implementing regulations.

The Poultry Products Inspection Act, as amended and implementing regulations.

The Egg Products Inspection Act, as amended and implementing regulations.

The Humane Methods of Slaughter Act, as amended and implementing regulations.

The Safe Drinking Water Act (SDWA) , as amended and implementing regulations.

State food safety agency laws and implementing regulations.

The FTC, FDA, USDA, EPA and state regulatory agencies share jurisdiction over the regulation of food and beverages, and the claims made by manufacturers of food products pursuant to a regulatory scheme established by Congress through complementary statutes.

Yes.

• Federal: The United States Department of the Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates interstate commerce in alcohol beverages (every liquid, solid, powder or crystal containing alcohol, spirits, wine or beer when it is capable of being consumed by a person) and the labeling, advertising, and marketing of these products by manufacturers (aka producers) and wholesalers (aka distributors).

• State: An agency in each state, each with a different title (often known as the Department of Alcoholic Beverage Control (ABC), State Liquor Authority (SLA), or something similar) regulates the production, distribution, and sale of alcohol beverages within its state. Most states are “Non-Control States” (where private businesses apply for licenses to manufacture, distribute, and sell alcohol beverages) and the others are “Control States“ (where the state government controls the sale of distilled spirits (and sometimes beer and wine) through governmental agencies at the distribution level and may also control retail sales for off-premises consumption through government stores or specified agents.

• Local: In most states, local regulatory schemes (city, county or other) are preempted by state law, but localities retain some rights, such as the right to hold a vote to ban the sale of alcoholic beverages in its locality and setting hours for retail establishments. Many times, alcohol licenses are also needed at a local level to operate.

• Federal:

• The Federal Alcohol Administration Act (FAA Act).

• The Alcoholic Beverage Labeling Act of 1988 (ABLA) requires that a specific health warning statement appear on the labels of all containers of alcohol beverages for sale or distribution in the United States.

• Chapter 51 of the Internal Revenue Code of 1986 (IRC) sets forth certain marking requirements for alcohol beverage products. Chapter 51 of the IRC also imposes federal excise taxes on beer, wine, and distilled spirits, and provides for the regulation of those alcoholic beverages to protect the revenue associated with the federal excise taxes.

• State: Varies and is independently created by each state, but usually a comprehensive set of laws in each state known as the Alcoholic Beverage Act (or similar name).

• Federal: The FAA Act led to states creating the “three-tier system”, which provides for three independent levels for alcohol distribution: the manufacturer tier, the distributor tier, and the retailer tier. The purpose of the three-tier system is to eliminate “tied-houses” which are ties (e.g., ownership, interlocking directors, loans, exclusive contracts, certain gifts) between two of the three tiers so that neither manufacturers nor distributors can control retailers.

• State: The three-tier system is used in various forms in most states.