AMS Module 4

Noncompliance Codes 1-9 for All 

Retail Reviews
Lesson Objectives

• Understand Noncompliance (NC) codes 1-9.

• Understand when multiple NC codes are appropriate for an item. 

2
Refresher: Regulatory Requirements

Modules 1 and 2 discussed retailer responsibilities, including: 

• Retailers must convey the country of origin for COOL covered 

commodities.

• The method of production (wild, farm-raised) is required for fish and 

shellfish items.

• Production steps (born, raised, harvested) are required for goat, lamb 

and chicken muscle cuts derived from animals harvested in the US.

• Retailers must maintain records for 1 year and provide records within 5 

business days upon request.

3
Refresher: Retail Review

Module 3 discussed how to conduct the retail review, 

including:

• Conducting the opening meeting.

• Conducting the retail review, including what to look for, 

where to look in the store, and how to count covered 

commodities.

• Conducting the closing meeting.

4
Noncompliance Codes

USDA uses Noncompliance 

(NC) codes to assist you 

with identifying the 

noncompliance findings 

observed during the retail 

review. The noncompliance 

codes are used in lieu of 

citing to the COOL 

regulations. 

5
wNoncompliance Codes 1-5

6
NC Code 1 – No COOL

NC code 1 applies when the covered commodity’s country of 

origin information is absent. This means it’s not on the 

individual package, PLU sticker, store sign, store label, rubber 

band, twist tie, etc. 7 CFR Part 60.200 – 7 CFR Part 60.300 and 7 

CFR Part 65.300 - 7 CFR Part 65.400

7

1 Covered commodity is not identified with the country of origin.

Code Noncompliance Finding
NC Code 1 - No COOL (cont.) 

There is no country of 

origin information on 

the poblano pepper 

sign, on the peppers 

themselves, or 

anywhere else for the 

consumer to see. 

Therefore, NC code 1 

applies. 

8
NC Code 1 – No COOL (cont.)

• Federal marks of inspection and the USDA Organic seal do not 

indicate an item’s country of origin. 

• A supplier’s address does not indicate the item’s country of origin, 

but rather refers to the company’s location.

• US grades do not indicate an item’s country of origin. 

9
NC Code 2 – Not Legible or 

Conspicuous

NC code 2 applies when the country of origin is present; however, it’s 

not legible or placed in a conspicuous location where it is likely to be 

read and understood by a consumer. For example, when the country 

of origin is covered by another sticker, smeared, or located far from 

the item itself. Also, NC code 2 applies when less than 50% of an item 

sold in bulk has a country of origin sticker. 7 CFR Part 60.200 – 7 CFR 

Part 60.300 and 7 CFR Part 65.300 - 7 CFR Part 65.400 10
NC Code 2 – Not Legible or 

Conspicuous (page 2)

Examples of NC code 2:

• The country of origin is covered 

by the advertisement sign. 

• The organic tape covers the PLU 

sticker with the country of origin 

information.

11
NC Code 2 – Not Legible or 

Conspicuous (page 3)

Examples of NC code 2:

• Checkboxes are ok to list possible 

country(ies) of origin. However, if 

none of the checkboxes are 

selected, NC 2 would apply. 

• COOL information that is smeared 

on the sign.

12
NC Code 2 – Not Legible or 

Conspicuous (page 4)

When less than 50% of the items in a bulk bin have a 

country of origin sticker, and the COOL is not displayed 

elsewhere, NC code 2 applies. 

13
NC Code 3 – Not Accurate

NC code 3 applies when contradictory country of 

origin labels are visible to the consumer. 7 CFR Part 

60.200 – 7 CFR Part 60.300 and 7 CFR Part 65.300 - 7 

CFR Part 65.400

14
NC Code 3 – Not Accurate (page 2)

In this example, the kale 

product tag states: 

“Product of USA.” The store 

sign on the shelf states: 

“Product of Mexico.” As the 

country of origin on the 

product tag and shelf sign 

contradict, NC code 3 

applies. 

15
NC Code 3 – Not Accurate (page 3)

The pear’s product look up 

(PLU) sticker states USA; 

however, the store sign for 

the item states Argentina. As 

the country of origin on the 

PLU sticker and store sign 

contradict, NC code 3 

applies. 

16
NC Code 4a – Use of and/or

NC code 4a applies when the COOL includes disjunctive 

(“or”, “and/or”) or ambiguous (“may contain”) terms. 7 

CFR Part 60.200 – 7 CFR Part 60.300 and 7 CFR Part 

65.300 - 7 CFR Part 65.400

17
NC Code 4a – Use of and/or (cont.)

Examples of NC 4a include:

• Sweet Corn label stating: 

“Produce of U.S.A. or Mexico”. 

• Pepper label stating: “May 

Contain Product of USA, Mexico, 

or Canada.”

18
NC Code 4b – Indistinct Localities

19

NC code 4b applies when the country of origin is not 

stated in an acceptable form. This includes a regional 

designation or an indistinct locality such as “locally 

grown.” 7 CFR Part 60.200 – 7 CFR Part 60.300 and 7 CFR 

Part 65.300 - 7 CFR Part 65.400
NC Code 4b – Indistinct Localities 

(cont.)

Examples of indistinct localities, which 

would require citing NC 4b include:

• From the Pacific Northwest

• American

• Locally Grown

• Gulf of Mexico

• Appalachian

20
NC Code 4c – No Production Steps

NC code 4c applies when the country of origin is present but the 

production steps (born, raised, harvested) are absent. 7 CFR 

65.300(d)

• Production steps are only required for lamb, goat, and 

chicken muscle cuts derived from animals harvested in the US. 

• NC 4c can only be used for muscle cuts of meat.

21
NC Code 4c – No Production Steps 

(cont.)

Chicken breast cutlets have 

the country of origin as 

“Product of USA” but the 

production steps (born, 

raised, harvested) are absent. 

Since the production steps 

are absent from the COOL, NC 

4c applies. 

22
NC Code 5 – Abbreviations

NC code 5 applies when country abbreviations are used, besides 

those approved for use under CBP rules, such as: UK for the 

United Kingdom of Great Britain and Northern Ireland, Luxemb for 

Luxembourg, and US or USA for the United States of America. 7 

CFR Part 60.200 – 7 CFR Part 60.300 and 7 CFR Part 65.300 - 7 CFR 

Part 65.400

23
NC Code 5 – Abbreviations (cont.)

NC code 5 applies in both examples, as the country 

abbreviations are not acceptable:

• The Belt Fish sign states “VIET/Wild”.

• Limes sign states “MEX”.

24
wNoncompliance Codes 6-9 (only for 

Fish and Shellfish items)

25
NC Code 6 – Missing Method of 

Production (MOP)

NC code 6 applies when the method of production (MOP) is not 

conveyed to the consumer. 7 CFR Part 60.200 – 7 CFR Part 60.300

NC code 6 only refers to the MOP, regardless of the presence or 

absence of the country of origin. 

26
NC Code 6 – Missing MOP

NC 6 applies in both examples 

because the method of production 

is absent; it is not on the store sign, 

price tag, package, etc.

• Basa Filet does not have MOP. 

• Lake Perch Fillet does not have 

MOP. 

27
NC Code 7 – MOP Illegible or 

Inconspicuous

28

NC code 7 applies when the method of production 

is present; however, the information is illegible, smeared, 

obstructed, or not in a conspicuous location. 7 CFR Part 

60.200 – 7 CFR Part 60.300
NC Code 7 – MOP Illegible or 

Inconspicuous (cont.)

Grouper Steak has a checkbox to 

indicate the method of 

production as “Farm” or “Wild”. 

While a checkbox is acceptable; 

since the MOP is not checked, NC 

7 applies. 

29
NC Code 8 – Inaccurate MOP

30

NC code 8 applies when contradictory method of production 

information is provided. 7 CFR Part 60.200 – 7 CFR Part 

60.300
NC Code 9 – MOP Not in 

Acceptable Form

NC code 9 applies when the method of production is not 

listed in an acceptable form. Acceptable forms are: wild, 

wild caught, farmed, farm-raised. 7 CFR Part 60.200 – 7 

CFR Part 60.300

31
NC Code 9 – MOP Not in 

Acceptable Form (cont.)

Unacceptable MOP examples that would warrant an 

NC9 if the MOP isn’t elsewhere include:

• Caught at sea, line caught, FRMD

• Fished by pole and line

• Cultivated, Catch Method: Pots.

Descriptive terms are acceptable if the correct MOP 

is listed. For instance, Ocean Wild Caught is 

acceptable; the word ‘Ocean’ is descriptive.

32
Multiple NC Codes

• It’s possible to cite multiple NC codes for an item. Multiple NC codes 

are not to be used for indecision, but rather specific situations when 

more than 1 non-compliance is observed.

• The most common multiple NC code combination is NC 1 and NC 6 

for fish and shellfish items. This means there is no country of origin 

(NC 1) and no method of production listed (NC 6). 

33
Multiple NC Codes (cont.)

• NC1 cannot be combined with NC 2-5 for an item.

• NC 1 means there is no country of origin present for the 

consumer to see. With NC 2-5 the country of origin is present; 

however, the notification is deficient. 

• NC 6 and NC 7-9 cannot be grouped together for one item.

• NC 6 means there is no method of production present. With NC 

7-9, the method of production is present; however, the 

notification is deficient. 

34
NC 1 versus NC 4c 

NC 1 and NC 4c cannot be combined.

• NC 4c only applies to lamb, goat, or chicken muscle cut items 

derived from animals harvested in the US. 

oNC 4c does not apply to ground lamb, ground goat, or ground 

chicken.

oNC 4c does not apply to imported muscle cuts of lamb, goat, or 

chicken.

• NC 1 applies to muscle cuts of lamb, chicken, and goat that are 

missing both the country of origin and production steps. 

35
NC 1 versus NC 4c (cont.)

NC 1: The Fresh Chicken Boneless Breast 

item is missing the country of origin and 

production steps. 

NC 4c: Chicken Breast Cutlets shows 

“Product of USA”. The production steps 

are absent (not on the front nor back of 

the package, sign, sticker, etc.).

36
Tips for Documenting NCs

• NC 2: Explain why it was illegible (was there something covering it); was it on just 

one package or all?

• NC 3: Explain what was observed; such as “Store sign says USA, PLU sticker says 

Mexico,”

• NC 4b – Explain what was observed; such as “Local” on the tag, no COOL to 

convey the origin.

• NC 4c: Document the COOL shown; such as “Product of USA” is on the tag but the 

production steps are missing.

• NC 9: Explain what was observed; such as “The sign stated ‘Sustainably Caught’ 

but lacked the MOP.” 37
Questions?
COUNTRY OF ORIGIN LABELING

Thank you for completing Module 4!