Transfer of the CN Labeling Review Function       from the Food and Nutrition Service to the Agricultural Marketing Service

Action

On Jan. 16, 2009, USDA approved the transfer of the Child Nutrition (CN) Labeling review function from the Food and Nutrition Service (FNS) to the Agricultural Marketing Service (AMS). This transfer will provide adequate staffing and technological support for the efficient operation of the CN Labeling Program through a fee-for-service program.

Background

The CN Labeling Program helps local food service professionals to determine the contribution that commercial products make toward the meal pattern requirements for meals served in FNS Child Nutrition Programs. The existence of a CN label on a product provides schools and other Child Nutrition Program operators with a guarantee that the product contributes to the meal pattern requirements as printed on the label.

The value of the CN Labeling Program was affirmed at a 2007 stakeholders’ meeting of representatives from school districts, State agencies, and industry. The stakeholders unanimously supported continuation of the CN Labeling Program despite diminished resources available at FNS to support this program.  In addition, a September 2006 report by the USDA’s Office of Inspector General identified the lack of inspections for many CN labeled products as a significant concern. 

Unlike FNS, AMS has statutory authority to charge and expend user fees for a variety of services in support of the marketplace, such as user fees for CN label reviews and inspections. AMS began reviewing Quality Control (QC) Programs for compliance with the CN Labeling Program requirements on April 1, 2009 as a fee-based service.  

Transition Phase

FNS staff started providing training to AMS staff on the CN label review process at FNS in May 2009. It is projected that training at FNS will continue through October 2009. Contingent on the transfer of the CN Labeling Program database from FNS to AMS, CN label reviews will begin at AMS with support and training provided by FNS staff. Concurrently, AMS will provide review of CN label applications as a fee-based service. 

FNS will retain overall program administration authority of the  CN Labeling Program and continue to establish related policies, instructions, and regulations. FNS staff will continue to perform the oversight activities and provide ongoing technical assistance to AMS.

CN Label Review Fees

The transfer will consolidate management of the CN Label Program under AMS, Processed Products Branch (PPB). AMS-PPB is a user fee organization and as such will implement a fee for all CN Label Program activities. This will enable the program to continue to provide a valuable service to the industry in an efficient, cost-effective manner.

AMS-PPB will issue a Notice of CN Label Review Fees to the industry, 30 days prior to the commencement of charging fees.  Currently, the implementation of a label review fee is scheduled for November 2, 2009. All applications reviewed at AMS-PPB with a label determination stamp dated after November 2, 2009 will be assessed the AMS label review fee.

During the interim, the FNS-AMS CN Labeling Program staff will continue to operate at the current rate of productivity. All applications that are submitted to FNS before this target date of November 2, 2009 which have not received a label determination by October 30, 2009, will be reviewed by AMS and assessed the AMS fee accordingly. This fee will be assessed based on the time spent reviewing a label. All labels submitted or reviewed by AMS-PPB will be assessed a minimum fee of one hour. If additional time is needed to review the label, fees will be assessed in half hour increments that are necessary to complete the process.

Information and Resources

During the transition phase, FNS/AMS will post questions and answers (Q and As) to frequently asked questions regarding the transfer. Please visit the CN Labeling section of this Web site often for the latest updates on the CN Labeling Program.

Last modified: 06/30/2009