Voluntary Report - public distribution

**Date:** 8/11/2004

**GAIN Report Number:** FR4062

FR4062

**France**

**Biotechnology**

**Implementation of NF/NF and T&L Regulations in France**

**2004**

**Approved by:**

![](media/image1.wmf)Kurt Seifarth

U.S. Embassy

**Prepared by:**

Marie-Cécile Hénard

**Report Highlights:**

France implemented the European regulations on Novel Food /Novel Feed
and biotech traceability and labeling on April 18, 2004. The Fraud
Control Office of the French Ministry of Economy, Finance and Industry
(DGCCRF) is the authority enforcing compliance with the regulation.
DGCCRF has published several informational fact sheets to help industry
adapt to the new regulations, and also released specific to France rules
for negative labeling. National legislation is also expected for biotech
labeling in the HRI sector. The French food industry was well prepared
for the new regulations through product reformulation and document
guarantees from suppliers on product traceability. Greenpeace is acting
as watch dog, products with positive labeling are on its website.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Paris \[FR1\]

\[FR\]

Table of Contents

[Executive Summary 3](#executive-summary)

[1. French Authority in Charge of Implementing the Regulations
3](#french-authority-in-charge-of-implementing-the-regulations)

[a. DGCCRF Communication 3](#a.-dgccrf-communication)

[b. Biotech Sampling and Testing 3](#b.-biotech-sampling-and-testing)

[c. Fines and Penalties 3](#c.-fines-and-penalties)

[2. French Only Regulation 4](#french-only-regulation)

[a. Non-Biotech Labeling 4](#a.-non-biotech-labeling)

[b. Food in HRI sector 5](#b.-food-in-hri-sector)

[3. Impact on the French Food and Feed Industry
5](#impact-on-the-french-food-and-feed-industry)

[a. Food Industry 5](#a.-food-industry)

[b. Feed Industry 5](#b.-feed-industry)

# Executive Summary

France implemented the European regulations on Novel Food /Novel Feed
and biotech traceability and labeling on April 18, 2004. The Fraud
Control Office of the French Ministry of Economy, Finance and Industry
(DGCCRF) is the authority enforcing compliance with the regulation.
DGCCRF has published several informational fact sheets to help industry
adapt to the new regulations, and also released specific to France rules
for negative labeling. National legislation is also expected for biotech
labeling in the HRI sector. The French food industry was well prepared
for the new regulations through product reformulation and document
guarantees from suppliers on product traceability. Greenpeace is acting
as watch dog, products with positive labeling are on its website.

# 1. French Authority in Charge of Implementing the Regulations

## a. DGCCRF Communication

The Fraud Control Office of the French Ministry of Economy, Finance and
Industry (DGCCRF) is in charge of implementing these regulations in
France. In order to help French operators understand and properly
implement these regulations, DGCCRF has published 4 information fact
sheets:

> \- Fact sheet \# 2004-52, dated March 31, 2004: transitional measures
> to regulation EC 1829/2003 on biotech labeling,
>
> \- Fact sheet \# 2004-113, dated August 16, 2004: non-biotech
> labeling,
>
> \- Fact sheet \# 2004-136, dated October 12, 2004: labeling for food
> products and animal feed products containing genetically modified
> products or produced from biotech products (EC 1829/2003 Regulation)
>
> \- Fact sheet \# 2004-135, dated October 12, 2004: traceability of
> biotech products and their derived products in food (EC 1830/2003
> Regulation)

These fact sheets are all available on DGCCRF website:
http://[www.finances.gouv.fr/dgccrf](http://www.finances.gouv.fr/dgccrf)

## b. Biotech Sampling and Testing 

Sampling and testing of products is performed by DGCCRF according to the
guidelines proposed by the EU Commission, although DGCCRF considers
these guidelines difficult to follow: the suggested sampling is
considered excessive. DGCCRF has a laboratory in Strasbourg (Alsace)
that will do the testing. DGCCRF currently performs sampling and testing
on food, animal feed and planting seeds and the results of their
analyses will be available starting in late 2004.

Note: According to the Regulation EC 1829/2003, each biotech product
officially approved in the future by EU authorities will be tested.

## c. Fines and Penalties 

Fines and penalties for noncompliance with the 1829/2003 Regulation are
similar to those used for noncompliance with other food/feed labeling
regulations. If DGCCRF finds a product that does not comply, the
operator is given a warning and asked to comply. DGCCRF follows up with
additional controls on the same product to confirm compliance. If the
operator does not comply, he can be charged with publishing misleading
information (in French, "délit de tromperie") and condemned to spend a
maximum of 2 years in prison and a fine of 37,500 euros. Alternatively,
the operator can be asked to pay fines ("contraventions") of up to 450
euros per label that does not conform to the regulation.

Please note that the first "operator" in France not implementing the
regulation is the one penalized by DGCCRF. For example, the French
importer of a U.S. product will be penalized if the product is not
correctly labelled. A French distributor can also be penalized for
nonconformity if the labeling is not adequate at its level, but was
adequate at the level of its suppliers.

# 2. French Only Regulation 

## a. Non-Biotech Labeling

Most DGCCRF fact sheets clarify EC Regulations, however, fact sheet
#2004-113 concerning non-biotech labeling is specific to France, as EC
Regulations do not cover this type of labeling.

This fact sheet specifies the labeling requirements for products that
state they are "non-biotech," "biotech-free," or "PCR negative."

-   The product cannot contain any biotechnology, or anything above the
    detection threshold of 0.1%, not the 0.9% threshold used in the EC
    Regulations for positive labeling.

-   No genetically modified organism, product derived from genetically
    modified organism, or obtained with the help of a genetically
    modified organism (such as amino acids, vitamins or enzymes) can
    have been used at any processing step of the product.

-   When negative labeling is on one ingredient of a final product, it
    must not be misleading so that the final used of the product should
    not understand that the whole product is biotech-free.

-   Negative labeling cannot be used if a product can potentially
    contain biotech material. However, general statements like "no
    genetically modified wheat is authorized in Europe" are authorized.

-   Negative labeling indicating "derived from non-biotech seeds" is
    said to be misleading if the final product could contain
    adventitious biotech material.

-   Organic products cannot be labeled as biotech-free only because they
    are organic. Negative labeling can only be use if the biotech
    content is lower then the threshold of 0.1%, as is the case for
    non-organic products.

Food products labeled as non-GM currently available on the French market
are mainly canned sweet corn, health-oriented products and baby food.

## b. Food in HRI sector

Under EC Regulation 1829/2003, the EU Commission considers that
non-packaged (bulk) food products sold in hotels, restaurants and
institutions (HRI) is covered by the biotech labeling regulations only
if these products are not transformed or elaborated (warmed, cut,
prepared, etc.) on the site of the hotel, restaurant or institution. For
the EU Commission, food products transformed on the site of the HRI are
not covered by biotech labelling regulations.

In France, DGCCRF believes that consumers should be informed whether
food products are transformed or elaborated on site. A decree has been
prepared by an inter-ministerial group and is currently being reviewed
by the "Conseil d'Etat," a committee that rules if any new legislation
is in conformity with the French Constitution.

# 3. Impact on the French Food and Feed Industry

## a. Food Industry

The French food industry reports being well prepared for the new
regulations. It has been reformulating their products or asking for
guarantees from its suppliers before the 1829/2003 Regulation entered
into force. For example, soybean oil is no longer being used in most of
food products, and lecithin comes from soybeans grown in non-biotech
areas. The French Food Industry Association (ANIA) indicates that the
regulation on labeling of food produced with biotech microorganisms has
been delayed by the EU Commission to late 2005: the French food industry
benefits from this delay, since a wide range of food products are
processed with genetically modified microorganisms products, such as
enzymes or amino acids. Finally, ANIA currently believes that the French
food industry is under more pressure from biotech opponents like
Greenpeace than from regulatory authorities (DGCCRF) in terms of T&L
watch. [http://www.ania.net](http://www.ania.net/)

Greenpeace France has organized a website with all the products,
supermarket chains and cities where food products labeled as containing
biotechnology are listed and photographed. Greenpeace calls these
retailers « shops of horrors. » The website calls for volunteers to seek
out food products containing biotechnology and report it. Greenpeace
France is now turning to animal products and is putting pressure on food
processors to label meat products and dairy products as derived from
biotech and biotech feed.
[http://www.greenpeace.fr](http://www.greenpeace.fr/)

France's leading food retailer Carrefour continues to maintain its
position on biotech products. Carrefour is committed to supplying food
products sold under their brand name without biotech labeling, is other
words products that test under the 0.9% level. Carrefour asks that a
HACCP system be put in place in the plants processing food products
under the Carrefour brand and under private brands, so that there is no
cross-contamination between the two flows.

## b. Feed Industry

The French feed compounders association (SNIA) is not happy that EU
Regulation 1829/2003 sets a 0.9% threshold for "adventitious and
technically inevitable presence" of biotech products, since this can be
interpreted in various ways. As in the food sector, the feed sector was
prepared for the new Regulation and implemented a 1% threshold prior to
the 1829/2003 Regulation, on a voluntary basis since there was no
European rule on for feed. Like DGCCRF, SNIA also considers the EU
Commission guidelines for sampling as difficult and expensive in
practrice.

Currently, soybean meal imported in France can be broken down as
follows:

-   75% of standard product, not tested, and labeled as containing
    biotech;

-   5% of Hard Identity Preserved (IP) product, which is traced back
    from the field to guarantee non-biotech in origin; and

-   20% include 3 categories:

    -   products labeled as derived from biotech and below 0.9% when
        PCR-tested,

    -   products not labeled as derived from biotech and below 0.9% when
        PCR-tested, and

    -   Soft IP products, traced back from the crushing plant

[http://www.nutritionanimale.org](http://www.nutritionanimale.org/)

Carrefour started sourcing non-biotech feed from Brazil in 2000. This
soybean meal based feed is produced in Brazil under contract and used in
France to feed animals, which in turn are sold as meat cuts under the
Carrefour brand. There are currently 250,000 MT of soybean meal imported
annually under these hard IP standards. Under agreement tests are made
in Brazil on the planting seeds, in the fields, in the storage silo, at
the crushing plant, and at the Brazilian port of export and French port
of entry, so that the biotech content is no more then 0.5% at the French
port of entry. Pork, poultry, egg and trout products sold under the
Carrefour brand name are products derived from animals fed with this
hard IP soybean meal. Bunge and Soules-Caf are the two importers based
in France working with Carrefour on these products.