U.S. shuts down organic wine imports

The importation of organic wine into the United States will face a new obstacle due to a recent regulation by the U.S. Department of Agriculture (USDA). Although the regulation previously required that both vineyards and wineries be certified as organic, the new rule mandates that importers must also obtain certification. This has generated uncertainty and concern in the sector, as importers do not handle the wine but are only responsible for its reception, transportation, and commercialization.

The measure, which took effect at the end of September, stipulates that any wine labeled as organic in the U.S. must come from a certified importer, regardless of whether the wine has already been produced and bottled under organic certification in its country of origin. This has created complications since many importers have been unable to secure the certification, and there have been delays in the processing of applications by the USDA itself.

As of now, if a wine from any winemaking country, made with USDA-certified organic grapes and at a certified winery, is imported into the U.S. by a company without certification, the wine cannot be marketed as organic. If the importer markets it as organic while its certification is still pending, both the importer and the foreign wineries involved may face significant financial penalties. According to a USDA spokesperson, these penalties include goods being held at customs, potential fines, and cease-and-desist orders. The Department of Justice could even intervene in cases of non-compliance, adding further confusion among industry stakeholders.

Critics of the regulation, such as Congressman Nick Langworthy, have argued that the measure represents an unnecessary bureaucratic burden. Langworthy, who serves on the House Agriculture Committee and represents a district in New York with significant wine activity, was the primary signatory of a letter sent to the USDA requesting a 120-day extension for importers to comply with the rule. The letter, supported by eight other committee members from both parties, argued that the rule imposes an unexpected burden on importers and that its implementation was not based on a clear need.

The issue is compounded by a complex logistical environment. The situation could worsen if the planned strike by East Coast port workers in the U.S. goes ahead this October. This could delay the entry of products labeled as organic into U.S. territory, and if the USDA decides to apply the regulation strictly before the goods are unloaded and cleared, some wine shipments could be held in containers without the possibility of being sold as organic.

The USDA has defended the new measure, stating that it aims to prevent fraud in the supply chain and ensure that all players in the organic products market in the U.S. are subject to the same regulations. However, industry criticism indicates that there is no clear justification for applying this change specifically to wine importers. To date, wines arriving bottled from certified wineries already go through a rigorous process of document verification, so requiring importers, who do not handle the product, to be certified as well seems like a redundant and costly measure.

Faced with this scenario, organic wine importers in the U.S., who are often small businesses with limited resources, are in a difficult position. Obtaining certification involves time and money, resources that they often lack. In contrast, large importers, who have more resources and experience in handling regulations, will be better positioned to adapt to the new situation. This creates a scenario of inequality in the market and could lead many small importers to stop selling organic wines because they cannot meet the requirements.

Another factor to consider is the response from the European wine sector. European wineries exporting to the U.S. may choose not to label their wines as organic for the American market, even if they have followed all the necessary practices to obtain such certification in their home countries. This could lead to a reduction in supply for consumers seeking organic products and, therefore, an increase in the prices of organic wines that manage to reach the end consumer.

The Wine & Spirits Wholesalers of America (WSWA), one of the most influential organizations in the industry, has also expressed concern over the repercussions of the new regulation. In a statement, the WSWA noted that many of its members, who were previously exempt from this certification, are now facing delays in the certification process, which could impact the availability of organic wines in the market and disrupt the balance of international wine trade.

Ultimately, the situation could have counterproductive effects on the organic products movement in the U.S. If the regulation is not adjusted or an extension is granted, some wineries may consider abandoning organic labeling for the U.S. market, which would discourage organic wine production in the long term and hinder the expansion of this segment. Requests for the USDA to reconsider the measure have already been submitted, but so far, there are no signs that the regulation will be rolled back.