Understanding National Bioengineered Food Disclosure Standard Compliance

As consumer awareness and regulatory scrutiny grow, food manufacturers, retailers, and importers must navigate the National Bioengineered Food Disclosure Standard (NBFDS), which mandates transparent disclosure of bioengineered (BE) ingredients in food products. Ensuring compliance requires a blend of technical understanding, robust documentation, and clear communication. This blog provides high-level guidance for businesses impacted by the NBFDS. For tailored guidance or compliance solutions, consult with your accounting or regulatory advisor to ensure that your NBFDS strategy aligns with current legal requirements and industry best practices.

What is the NBFDS?

The NBFDS is a federal standard requiring clear labeling or disclosure when food products contain bioengineered(BE) ingredients. BEs are a subset of GMOs, or genetically modified organisms, in which the end product contains detectable modified DNA. The NBFDS applies to manufacturers, importers, and retailers above specific revenue thresholds, with mandatory compliance from January 1, 2022

Are Your Products Subject to the NBFDS?

The Standard defines bioengineered foods as those that contain detectable genetic material that has been modified through in vitro recombinant deoxyribonucleic acid (rDNA) techniques and for which the modification could not otherwise be obtained through conventional breeding or found in nature.

There are several exceptions to NBFDS inclusion, including:

• Products not intended for human consumption
• Foods not subject to the FDCA labeling requirements
• Foods whose primary ingredient is pork, beef, sheep, goat, catfish, chicken, turkey, domesticated birds, or egg products. If the first ingredient is stock, water, broth, etc, then the second ingredient should be considered.
• Alcoholic food and beverages covered by the FAA Act
• Products where BE ingredients appear in insignificant amounts and have no technical or functional effect on the food
• Food containing more than 70% organic ingredients that has been certified under the National Organic Program

Even if a product does not contain BE material, documentation supporting this status must be retained in the event of an investigation.

Record-Keeping for Compliance

Record-keeping is central to NBFDS compliance. The USDA AMS conducts investigations by auditing documentation, not by testing products directly. Persuasive records include:

• Supplier agreements stating BE status
• Process validations (e.g., documentation showing BE material is undetectable after refining)
• Laboratory test results (where documentation is insufficient or disputed)
• Origin certificates for foods sourced from regions prohibiting BE crops

These records must be kept for at least two years after the sale. Entities may need to retain them longer if supporting ongoing processes or regulatory inquiries.

How to Communicate BE Information

The NBFDS offers different disclosure options to suit different products and packaging:

• Printed Text: “Bioengineered food” for products wholly BE, or “Contains a bioengineered food ingredient(s)” for products with mixed content.
• USDA-Approved Symbols: Text should be at least 1/16th inch tall for readability.
• Digital Options: QR codes or similar technologies allow consumers to access product-specific disclosures online—accompanied by a phone number for 24/7 information.
• SMS/Text Messaging: Consumers text a code to receive BE status information instantly.
• Small and Very Small Manufacturers/Packages: Shortened text or pre-existing contact information is allowed, provided it follows accessibility guidelines.

Choosing the best disclosure method is both a regulatory and marketing decision. Clear, accessible labeling reassures consumers and builds trust. Market research indicates that digital disclosures are gaining popularity for their ease of updating and consumer convenience. NOTE: When using digital disclosures, businesses must avoid collecting any consumer or device data.

Enhancing Traceability Through Technology

Digitization is not just a compliance facilitator—it boosts accountability and efficiency across the supply chain. Modern traceability solutions streamline record-keeping, enable rapid updates for disclosures, and support proactive management in the event of recalls or regulatory alerts. Technology enables manufacturers to predict demand, monitor ingredients, and demonstrate compliance without manual errors.

Next-Gen ERP, like Sage X3, has built-in features specifically suited to food and beverage manufacturers. This software enables manufacturers to manage traceability, lot control, and recipes from a single platform, ensuring they are always prepared with persuasive documentation in the event of a USDA AMS investigation.

Watch these feature overviews of Lot Traceability and Recipe Management in Sage X3 to learn more about how Next-Gen ERP software can help support your company's compliance efforts:

Implementation and Compliance Monitoring

USDA enforcement relies on complaint-driven investigations. The most effective way to limit liability is through robust supplier agreements and traceable records. While USDA penalties are limited to public write-ups, reputational risks and potential consumer actions make strict compliance essential.

The NBFDS marks a pivotal shift in food labeling and transparency. By understanding the scope, maintaining persuasive records, leveraging technology, and choosing suitable disclosure methods, businesses can meet legal requirements and enhance consumer confidence. Proactive compliance is not just about avoiding penalties—it is an opportunity to modernize operations and build credibility in a rapidly evolving food marketplace.

The team at RKL eSolutions has developed a natural relationship with the food manufacturing and distribution industry, with offices in areas such as California’s agriculture-rich Central Valley, the Midwest Corn Belt, and Central Penn’s Snack Food Capitol of the world.   We offer a purpose-built process manufacturing solution with backward and forward traceability,  comprehensive security and complete audit of any activities within our offering. Reach out to Tim Knutson to schedule a Sage X3 walkthrough to learn more about the solution and how it can help your company maintain compliance.