Navigating the Complexities of Olive Oil Export from Spain to the United States: A Comprehensive Guide

Introduction

The international shipping of olive oil from Spain to the United States is a complex process that requires careful planning and attention to detail. As the global demand for high-quality olive oil continues to grow, it's crucial for exporters and importers to understand the intricacies involved in this trade. In this comprehensive guide, we'll explore the essential steps, regulations, and considerations for successfully exporting olive oil from Spain to the USA.

The olive oil trade between Spain and the United States represents a significant portion of the global market. According to recent data:

• Spain is the world's largest producer of olive oil, accounting for approximately 45% of global production.
• The United States is the third-largest consumer of olive oil globally, with imports increasing steadily over the past decade.
• In 2020, the USA imported over 350,000 tons of olive oil, with a significant portion coming from Spain.

Given these figures, it's clear that understanding the export process is crucial for businesses looking to capitalize on this lucrative market. Let's delve into the key aspects of exporting olive oil from Spain to the United States.

FDA Registration and Compliance

One of the first and most crucial steps in exporting olive oil to the United States is ensuring compliance with the Food and Drug Administration (FDA) regulations. Here's what you need to know:

FDA Registration

Before any shipments can be made, the exporting company must be registered with the FDA and obtain a registration number. This number is essential and must be included on all invoices issued. Fortunately, the registration process is free, but it's a mandatory step that cannot be overlooked.

U.S. Agent Requirement

As stipulated by the Bioterrorism Act, an agent or "representative" must be present in the United States upon the arrival of the olive oil. This agent serves as a crucial link between the Spanish company and the FDA or U.S. Government. Their role is to facilitate communication and ensure compliance with all relevant regulations.

Essential Invoice Details

When preparing invoices for olive oil shipments to the USA, certain information must be included to ensure smooth customs clearance and compliance with regulations. Here are the key elements that should appear on every invoice:

• FDA Company Registration Number: This is the unique identifier assigned to your company upon FDA registration.
• U.S. Agent Information: Include the name and contact details of your designated U.S. agent.
• Product Safety Declaration: A statement certifying that the product complies with all applicable safety regulations.
• Company Representative: The name and title of the company representative responsible for the shipment.
• CARB Exemption: A declaration stating that the product is exempt from California Air Resources Board (CARB) regulation 93120.2 (a).
• Shipping Conformity: A statement confirming that shipping and packing are in accordance with the purchase order.

Incoterms and Shipping Responsibilities

Before finalizing the order and loading the merchandise, it's crucial to agree on the Incoterms (International Commercial Terms) to be used. These terms define the responsibilities of both the seller and the buyer during the international transportation process. Common Incoterms used in olive oil exports include:

EXW (Ex Works)

Under EXW terms, the seller's responsibility ends when they make the goods available at their premises. The buyer assumes all risks and costs associated with loading and transporting the goods.

FOB (Free on Board)

With FOB terms, the seller is responsible for delivering the goods on board the vessel nominated by the buyer at the named port of shipment. The risk transfers to the buyer once the goods are on board the ship.

CFR (Cost and Freight)

Under CFR terms, the seller pays for the costs and freight necessary to bring the goods to the named port of destination. However, the risk transfers to the buyer once the goods are loaded on the vessel at the port of shipment.

Understanding and agreeing on the appropriate Incoterms is crucial for clearly defining responsibilities and avoiding potential disputes during the shipping process.

Quality Control and Certifications

Ensuring the quality of olive oil exports is paramount for maintaining consumer trust and complying with international standards. Several quality control measures and certifications are recommended or required:

Independent Quality Control

Before loading the goods into shipping containers, it's highly recommended to apply for independent quality control. Organizations like SGS (Société Générale de Surveillance) provide comprehensive inspection and certification services that can verify the quality and condition of the olive oil.

Official Certifications

In addition to independent quality control, official certifications are often required. These may include:

• Phytosanitary Certificate: Issued by the health departments of regional governments in Spain, this certificate confirms that the product meets plant health standards.
• SOIVRE Certification: The Official Service for Inspection, Supervision, and Regulation of Exports (SOIVRE) is mandatory for all olive oil exports from Spain. This certification ensures that the oil meets the required quality standards for export.
• FITOSANITARIO Analysis: Some American importers may request this additional analysis, which certifies that the Spanish state approves and certifies the exported product under set standards.

It's important to note that these certifications and inspections often require detailed information about the goods, including analytics of their lots and recipient data. Exporters should be prepared to provide this information promptly to avoid delays in the certification process.

Shipping and Logistics

The logistics of shipping olive oil from Spain to the United States involve several considerations and processes:

Maritime Transit Times

If choosing maritime transport, which is common for olive oil shipments, transit times can vary significantly depending on the destination port and the chosen service:

• Fastest services to New York: 7 to 15 days
• Slower services to San Francisco: Up to 40 days

Main U.S. Ports

The primary ports for receiving olive oil shipments in the United States include:

• East Coast: Norfolk, New York, Charleston, Miami, Port Everglades
• Gulf Coast: Houston
• West Coast: Los Angeles, Oakland, San Francisco

Prior Notice and ISF

When the goods are shipped, the freight forwarder is responsible for two crucial notifications:

1. Prior Notice: As required by the Bioterrorism Act, this is a warning of when and where the container is arriving.
2. ISF (Importer Security Filing): This document provides additional security information about the shipment to U.S. Customs and Border Protection.

Pricing and Fees

American imports typically use CFR (Cost and Freight) or CIF (Cost, Insurance, and Freight) pricing, which includes CUC (Container Unloading Charge) or THC (Terminal Handling Charge) at the destination. Exporters should be clear about these terms and ensure all costs are accounted for in their pricing strategy.

Labeling and Packaging Requirements

Proper labeling and packaging are crucial for compliance with U.S. regulations and ensuring the quality of the olive oil during transport:

Nutrition Facts Label

All olive oil products must include a Nutrition Facts label that complies with FDA regulations. This label should clearly display information such as serving size, calories, fat content, and other nutritional information.

Product Classification

Under Spanish customs regulations, all oil exports must be classified as one of the following:

• Extra Virgin Olive Oil
• Pure Olive Oil
• Refined Olive Oil
• Pomace Oil

Ensuring the correct classification is essential for compliance with both Spanish and U.S. regulations.

Packaging for Transport

Proper packaging is crucial to protect the olive oil during its journey. Consider the following:

• Use food-grade containers that are suitable for liquid transport
• Ensure all packaging materials comply with FDA regulations for food contact
• Implement tamper-evident seals to maintain product integrity
• Use appropriate cushioning materials to prevent damage during transit

Customs Clearance and Import Procedures

Once the olive oil shipment reaches the United States, it must go through customs clearance. Here are some key points to remember:

Documentation

Ensure all necessary documentation is in order, including:

• Commercial Invoice
• Bill of Lading
• Packing List
• Certificate of Origin
• FDA Prior Notice Confirmation
• Any required certifications (e.g., organic, kosher)

Tariffs and Duties

Be aware of current tariffs and duties applicable to olive oil imports. These can change based on trade agreements and policies, so it's essential to stay updated on the latest regulations.

FDA Inspection

The FDA may conduct inspections of olive oil shipments to ensure compliance with food safety regulations. Be prepared for potential sampling and testing procedures.

Conclusion

Exporting olive oil from Spain to the United States is a complex process that requires careful attention to detail and compliance with numerous regulations. From FDA registration and agent requirements to quality control certifications and shipping logistics, each step plays a crucial role in ensuring a successful export operation.

By understanding and following these guidelines, exporters can navigate the complexities of international trade more effectively, ensuring their high-quality Spanish olive oil reaches American consumers safely and efficiently.

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From comparing door-to-door freight quotes and tracking shipments in real-time to arranging customs clearance and cargo insurance, FreightAmigo's Digital Logistics Solution streamlines every aspect of your export journey. Our 24/7 logistics expert support ensures that you have the assistance you need, whenever you need it.

As the olive oil trade between Spain and the United States continues to flourish, having a reliable logistics partner becomes increasingly important. FreightAmigo is committed to fostering a unique TradeTech ecosystem that accelerates logistics, information, and cash flow, ensuring a hassle-free and enjoyable logistics experience for all our clients.

By leveraging our Digital Platform and expertise, businesses can focus on what they do best – producing and selling high-quality olive oil – while we take care of the complex logistics behind the scenes. Together, we can create new paths for businesses to grow and ship, transforming the way organizations experience international logistics in the ever-evolving global marketplace.