Chicken Imports from China

Chicken Imports from China

March 12, 2015
Chicken Imports from China
In August 2013, the U.S. Department of Agriculture’s
request that USDA review its inspection system to
(USDA’s) Food Safety and Inspection Service (FSIS)
determine if it is equivalent—i.e., the foreign system
granted equivalency to China’s poultry processing system.
(though different) must provide the same level of sanitary
This determination allows China to export processed
protection as the U.S. system.
(cooked) poultry meat to the United States. Imports from
China must be sourced from U.S.-slaughtered poultry or
When a foreign country asks to export its meat and poultry
from other countries allowed to export raw poultry to the
to the United States, the foreign government must first
United States (Canada, Chile, and France, as of March
provide FSIS information and data on government
2015). USDA’s action in August 2013 was the culmination
oversight, statutory authority and food safety regulations,
of the equivalency determination process that began a
sanitation, hazard analysis and critical control points
decade earlier.
(HACCP), chemical residues, and microbiological testing.
If FSIS determines that the documents and data demonstrate
The possibility that the United States could import poultry
a system of equivalent public health protection, FSIS is to
meat processed in China has raised concerns about lax food
conduct onsite slaughter and processing plant audits to
safety enforcement in China. Testimony presented at a June
observe and verify that a foreign country’s inspection
2014 hearing of the Congressional-Executive Commission
system is equivalent. If so, FSIS uses a rulemaking process
on China highlighted examples of China’s weak track
to grant equivalency, issuing a proposed rule for public
record on food safety. The discovery in the summer of 2014
comment and, if approved, a final rule. The process of
that a Chinese meat processor that supplied products to
sharing documents, conducting audits, and rulemaking may
McDonald’s, KFC, and other foreign food establishments in
take several years to complete.
China used unsanitary and expired meat in products
provided to the food establishments may have furthered
China’s Request
heightened concerns about China’s ability to supply safe
In 2004, in order to be eligible to export poultry to the
poultry meat to the United States.
United States, China requested that USDA determine if its
poultry slaughter and processing systems were equivalent.
Figure 1. China: 5th Largest Global Poultry Exporter
Upon completion of its review, FSIS published in
in 2014 (1,000 metric tons)
November 2005 a proposed rule that would permit the
import of processed (cooked) poultry products from China,
as long as the Chinese processed product originated from
poultry slaughtered in the United States or in countries
already eligible to export to the United States. At this point,
FSIS did not grant equivalency to China’s poultry slaughter
system. FSIS issued the final rule in April 2006, adding
China to the list of countries eligible to export processed
poultry products to the United States.
The final rule addressed concerns about avian influenza in
China and China’s ability to provide adequate and effective
food safety controls. It stated that FSIS had determined that
processing procedures in China were adequate to destroy
the avian influenza virus, and that USDA had adequate
controls to ensure there would be no adverse effect on
either U.S. animal health or human health. Annual random

FSIS audits of certified Chinese establishments would
Source: USDA, Livestock and Poultry: World Markets and Trade
continue to verify compliance with all requirements. The
Inspection Equivalency
agency also argued that the final rule would facilitate
poultry trade between the two countries in a manner
FSIS is responsible for inspecting meat and poultry for
consistent with U.S. international trade obligations.
safety, wholesomeness, and proper labeling under the
authority of the Federal Meat Inspection Act (FMIA; 21
The Appropriations Ban
U.S.C. §620 et seq.) and the Poultry Products Inspection
Before any Chinese processed poultry meat was imported,
Act (PPIA, 21 U.S.C. §451 et seq.). Under the two acts,
Congress prevented USDA from using appropriated funds
FSIS regulates the import of meat and poultry by granting
to implement the April 2006 final rule, through a provision
equivalency to foreign countries’ meat and poultry
in the FY2007 appropriations act (H.J.Res. 20, signed into
slaughter and/or processing systems. Any country that
wishes to export meat or poultry to the United States must
https://crsreports.congress.gov

Chicken Imports from China
law as P.L. 110-5). The ban was extended for FY2008 (P.L.
adequate inspection. Since China’s slaughter system still is
110-161) and FY2009 (P.L. 111-8).
not equivalent, China may not use domestic poultry in
processed poultry sent to the United States.
In the debate over FY2010 appropriations, the House would
have extended the ban, but the Senate permitted poultry
To date, China has not yet shipped processed poultry to the
imports under specified preconditions. Section 743 of the
United States. Many in the U.S. poultry industry believe
enacted FY2010 Agriculture appropriations bill (P.L. 111-
China has little incentive to ship processed poultry because
80) included language that allowed USDA to implement the
of the cost to import raw poultry and export processed
Chinese poultry rule under specific preconditions (see box).
poultry to the United States. The benefit for the Chinese
poultry industry would be to receive slaughter equivalency
so that it could ship domestic poultry to the United States.
Demand for white breast meat is low in China. Slaughter
Some Section 743 Preconditions
equivalency would allow China to fill some of the large
The section required that:
U.S. demand for breast meat with excess Chinese supplies,

China not receive any preferential consideration of any
as the United States continues to send excess U.S. supplies
application to export poultry or poultry products to the
of dark meat to China.
United States;
Proponents of opening the U.S. market to Chinese poultry

the Secretary of Agriculture conduct audits of inspection
argue that trade must work in both directions. China was
systems and onsite reviews of slaughter and processing
the 6th largest market for U.S. broiler meat exports in 2014.
facilities, laboratories, and other control operations before
Opening the U.S. market to Chinese poultry could remove
any Chinese facilities are certified to ship products to the
an irritant in the trade relationship. There are often
United States, and subsequently such audits and reviews will
disruptions in poultry trade with China. For example,
be conducted at least annually (or more frequently if
China currently bans, against international guidelines, all
necessary);
imports of U.S. poultry because of avian influenza

there be a “significantly increased level” of re-inspections at
outbreaks in the United States. The United States won a
U.S. ports of entry;
dispute settlement in the World Trade Organization

a “formal and expeditious” information-sharing program be
because of antidumping and countervailing duties imposed
established with other countries importing Chinese
by China on U.S. chicken exports. Although China
processed poultry products that have conducted audits and
lowered some of the duties last year, China has not fully
plant inspections;
complied.

a report be provided to the House and Senate
Appropriations Committees, within 120 days and every 180
Many food safety advocates, the public, and Members of
Congress continue to raise food safety concerns about
days thereafter, that includes both initial and new actions
importing poultry meat from China. Country-of-origin
taken to audit and review the Chinese system to ensure it
meets sanitary standards equivalent to those of the United
labeling (COOL) is viewed as one means to allow
consumers to know if they are buying Chinese poultry.
States, the level of port of entry re-inspections being
However, under the COOL regulations administered by
conducted on Chinese poultry imports, and a work plan
incorporating any agreements between FSIS and the
USDA’s Agricultural Marketing Service, processed
products are exempt from labeling. The Tariff Act of 1930
Chinese government regarding a U.S. equivalency
requires country-of-origin labels for imported goods, but
assessment; and
origin information may be lost as imported products are

the public be notified about audits and site reviews in China
further processed. In the case of Chinese poultry imports
and of lists of certified Chinese facilities.
that are further processed, FSIS inspects poultry
processing plants and the Chinese poultry would have to
Equivalency Granted
pass inspection before entering commerce.
In 2010, China asked USDA to again review its poultry
inspection system to determine if it was equivalent. FSIS
Congress, in response to concerns about imported processed
began to review and audit China’s poultry slaughter and
poultry, included Section 736 in the FY2015 appropriations
processing systems in December 2010. It issued audit
act (P.L. 113-235). This section prohibits USDA from
reports in October 2011 and conducted follow-up audits in
buying any processed poultry imported from China to be
March 2013. FSIS released the poultry processing report
used in the National School Lunch Program and other
and granted equivalency in August 2013. In November
USDA child nutrition programs. Members of Congress
2014, the Chinese government submitted to FSIS a list of
opposed to imports from China may attempt to extend this
four poultry processing plants that meet the processed
provision in FY2016 and use an appropriations provision to
equivalency requirements. These four plants may now ship
prohibit USDA from spending FY2016 funds to grant
equivalency to China’s poultry slaughter system.
processed poultry meat to the United States.

FSIS released the slaughter audit report in December 2013
Joel L. Greene, Analyst in Agricultural Policy
and did not grant equivalency for the Chinese poultry
IF10148
slaughter system. FSIS found that carcasses did not receive

https://crsreports.congress.gov

Chicken Imports from China

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF10148 · VERSION 2 · NEW