Bumbu Rendang & Indonesian Coffee Going Worldwide - Understanding the process for importing food product into the USA

Presented by: Dr. Asnul Bahar
At : Trade Expo Indonesia, 17 Oct 2019
                                                       Nasi Padang
                                         Kopi Tubruk
                                         Toraja

Bumbu Rendang &
Indonesian Coffee Going
Worldwide
Understanding the process for
importing food product into the USA

How did we start?
A friend of us in Palembang, Indonesia, asked us to
introduce his “Seasoning Paste” product into US Market

As a non-business person, I said “No”, but my wife who
has tried the paste and knew how good the products are
said “Yes, we’ll do it”

As a compromised they simply asked us to bring some
of the seasoning paste as gift.

We distributed the paste as gift to our friends in the USA
and found out that the response was amazing. We saw
this as business potential.

We realized that properly importing the product
according to US regulation is critical in order to grow the
business in the future.
                                                              02

What need to be done
for import?
FDA Registration (US and Foreign Company)

Foreign Supplier Verification Program (FSVP) :
• Develop program (by FDA Lawyer),
• Meet and Sign Contract with supplier in
    Indonesia,
• Review Program with Supplier,
• Inspect Supplier Facility

Develop Standard Operating Procedure (SOP)

Prepare Food Label according to FDA requirement

Preparing Custom Requirement
                                                  3

FDA Registration
•   Food Facility Registration is needed for :
     • Company in the USA (Importer)
     • Company out of the USA (Foreign
         Supplier)
•   Registration is free of charge
•   Registration must be done online (FDA
    Website) and need to be renewed
    regularly according to the expiration
    date (e.g., 2 years)
•   Registration information includes
    contact, product, and facility
    information

Foreign Supplier Verification
Program (FSVP)
• US Company is responsible for their foreign
  partner.
• The responsibility is regulated through a
  program known as FSVP. It contains:
   • Compliance Review, Corrective Actions,
      Record Keeping, Forms, Hazard Analysis,
      Importer Identification, Assessment, and
      Verification
• Foreign Food Facility need to be inspected by
  the US Company.
• FSVP program must be updated at least once
  every 3 years.

Food Label
•   Food Label is one of the most important aspect for
    preparing food import into the USA.
•   Strict regulation exists in both content and format of the
    label
•   Required item to be presented in a food label:
      • On the Principal Display Panel (PDP)
          •   Statement of Identity (Food Name)
          •   Statement of Net Quantity
     •   On the Information Panel
          •   Nutrition Fact, Composition and Allergen Information
          •   Name and Address of Manufacturer, Packer or
              Distributor,
          •   Statement of Country of Origin
          •   All information other than the above is considered as
              “Intervene Material”
               •   No “Intervene Material” to be shown in between of the
                   required above information.
     •   Font Size for the required information must follow the
         guidance. It depends on the available space of the
         label
     •   Detail of the guidance can be found from FDA website

Food Label Example

             Best Before : 31 Dec 2020

Custom & Border Protection
(CBP) Inspection
•   Imported Food Product must be declared as “Commercial Item”
    through a process known as “Formal Entry”
•   Formal Entry may be done with the help of a Custom Broker. It
    can only be done after the product left the country of origin,
    shown as Bill of Lading or Airway Bill as a proof cargo shipment
•   Important information for Formal Entry is FDA Registration
    Number for both Importer and Foreign Supplier, Product
    Description, Country of Origin, and Copy of Invoice
•   In addition to CBP, clearance must also be obtained from the
    related US Agency (e.g., FDA or USDA).
     •   CBP controls whether the item is allowed for import according
         to the government policy, as well as for payment of the tax
     •   Agency clearance is to see whether the product is permissible
         for import or not
•   Imported Product is normally entered into the country via Air or
    Ship Cargo, however
     •   It can also imported as passenger luggage. Regulation about
         this can be found from US CBP website
     •   There is no limit on the volume of import
     •   CBP officer at the airport will decide whether to inspect the
         item or not.

Indonesian Artisan Coffee
– Our Second Product
Import

•   Even though Food Label is still required
    for Coffee and Tea, Nutrition Fact
    information is not required, as long as it
    is not mixed with anything else (e.g., the
    three-in-one product of coffee, milk,
    sugar).
      • Other than Nutrition Fact, all other
         information such as Net Weight,
         Manufacturer/Distributor Address
         and Country of Origin is still
         required.

Grand Opening,
                                                             8 Feb 2019

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Thank You