On August 3, 2021, the U.S. government (USG) held a meeting with USDEC and other industry associations in which they described the updated export verification program that will be implemented to ensure compliance with the new requirements in the EU's dairy health certificates of Commission Implementing Regulation (EU) 2020/2235. This meeting and the details below, reflect the USG plans developed to maintain access to the market when the new certificates are implemented on August 21, 2021. We are happy to share that while AMS will be verifying some additional information during their future plant audits, the new export verification process will not create any new impacts for dairy farmers or manufacturers. Details are below.

However, as detailed below, there are still outstanding questions on the transit certificates for dairy and composite products sourced from facilities not already on the EU approved list.

USDEC will be holding a call on Thursday, August 5, at 3:30 pm ET to review the new requirements and answer member questions. Contact Bryan Jacoby at bjacoby@usdec.org to register.

Dairy Certificate Industry Certification Program Details

The USG has confirmed the following information on the new industry certification program for the dairy health and transit certificates, which involves no new record-keeping:

1. For all products exported to the EU on or after August 21, all milk utilized for dairy products exported to the EU either directly or for further manufacture in a third country must be sourced from farms regulated under either the (a) NCIMS Grade 'A' Dairy Program or (b) the USDA AMS Milk for Manufacturing Purposes  and its Production and Processing Recommended Requirements program. All U.S. dairy processing manufacturers have existing records that track raw milk receipts from farms, so this should not be an additional ask.
2. AMS will verify the source of the milk at the time they conduct their regular audits as part of the existing AMS EU Export Verification Program. When AMS checks the somatic cell count records available at milk supply facilities, they will also verify that the supplying farms indicated on the SCC records participate in one of the programs listed above.
3. AMS is aiming to have information posted on its website very soon reflecting the above details. USDEC has underscored the urgency of conveying this information to exporters.

Outstanding Concerns on EU Certificates

The USG also mentioned several items on which clarification is still pending, and we are asking for USDEC member input on point 1:

• Transit Certificates: If the USG does not receive additional clarification from the EU, both the new EU dairy and composite transit certificates require the plant number of the manufacturer as it appears on the list of EU-approved establishments; therefore, as of August 21, all goods certified with the dairy or composite transit certificate through the EU will be required to be obtained from plants on the current EU list. The composite transit certificate also states that all dairy ingredients incorporated in composite products must also be from dairy plants on this list.
  
  The USG has advised that at this point, they are only preparing to issue the dairy and composite transit certificates for plants that are on the EU approved list.
  
  In order to avoid the risk of market closure or product detention, for plants that are not already on the EU-approved list, the USG has taken two actions:
  a.. Requested the EU to delay implementation
  b.  Asked the EU for an alternative path for other plants that would like to obtain the transit certificate and are not already on the EU list.
  
  MEMBER INPUT NEEDED: If you are obtaining the dairy or composite transit certificate for the EU and are not on the current EU approved plant list now, please contact Bryan Jacoby at bjacoby@usdec.org ASAP.
  
  
• Region of Origin: The EU has confirmed in writing that it will treat the U.S. and Canada as one zone for the purposes of the 3-month domicile requirement. The certificate will list both the "U.S. and Canada" as the zone of origin to address this requirement and avoid the need for detailed record-keeping. Dairy certificates will be processed to reflect this understanding. In the interim, the USG has urged the European Commission to notify the EU border control posts (BCPs) of this agreement to avoid any potential confusion. Exporters should reach out to USDEC should any certificates be questioned upon arrival.
  
  
• Accompanying documents: The EU has confirmed that the bill of lading must be presented at the time of entry, but that the bill of lading number does not necessarily need to be included in the accompanying documents field on the certificate.

Certificate Details:

AMS has provided the following details related to the issuance of the new dairy certificates:

1. AMS plans to have the new dairy and composite EU certificates available in ATLAS on August 21 but will have a back-up paper certificate template ready should they encounter delays. If you are not already registered for ATLAS, please see the AMS ATLAS website for details on this new system.
   
   
2. The current version of the EU certificates in eDocs will be available through August 20. Exporters who wish to obtain the current version of the EU certificates must do so prior to August 21. The EU will accept the current certificate issued on or before August 20 as long as the goods arrive by October 20. Should you encounter significant shipment delays and your shipment will arrive after October 20, please contact Bryan Jacoby at bjacoby@usdec.org.

As a reminder, with both the current and new certificates, the EU requires certificates to be issued prior to the date of export and only allows amendments in the case of administrative error or a lost or damaged certificate. Exporters are encouraged to contact their importers to see whether an amendment is necessary should the vessel information change.

Please contact Bryan Jacoby at bjacoby@usdec.org with any technical questions on the EU certificates and refer to Volume 2 of the USDEC Export Guide for additional details.