Taking part in the food industry can be very profitable, but at the same time can illicit headaches. So many laws are put into place by the Food and Drug Administration that you can easily run into legal problems if you don’t outsource to a third party logistics company. As you’ll see, there are many laws and regulations to consider.
You yourself and all of the people you ship goods to must be registered with the FDA. This is quite the hassle, but necessary if the FDA is going to track a product if it should be recalled. Before doing business with a partner, your third party logistics company should have already scouted out their credentials and assuredly proven that they are safe to work with as far as the FDA is concerned.
One step that is often overlooked is verifying the address of any businesses that you are planning to work with. In making sure that the business address matches the one with the address on file with the FDA, you not only avoid trouble yourself but avoid the FDA looking into the case more and delaying your shipments. This can save both time and money.
There is a seven-character code that is put on every product that you export or import. This code is what we call the FDA product code, and it tells the FDA and shipment businesses what exactly they are carrying. It may outline the product, group code, industry code, and several other bits of information key in directing where the shipment should go.
One must also follow the Bio-terrorism Act, more specifically Title III. This act specifies that anyone importing foods into the US must adhere to certain rules. For instance, advance notification must be given to the FDA before a shipment arrives. Logistics companies should also keep substantial records on the food and where it is going to appease the title.
Even with this much discussed, there is a boat-load of information to consider when dealing with food and transportation. As you can see, outsourcing this headache to a third party logistics company is a great idea. Logistics companies will not only handle your burden, but also be responsible should anything go wrong. Third party logistics services will also be able to give you the documentation you need of the process to adhere to current laws.
Closing Comments
As you can see, even an introductory article on managing a food-related business in the United States can be a lot to remember. In fact, there is a lot more information you should know about operating such a business in the US. If you don’t have the time to learn or hire others to learn about the process, the best course of action is to seek out 3PL services.
If you would like to make a comment, please fill out the form below.
