FDA clarifies applicability of food traceability rule with new draft Q&A guidance
The FDA’s new guidance on the food traceability rule covers a range of implementation activities and scenarios, detailing how the rule may apply across the food supply chain, including manufacturers, retail food establishments, restaurants, and farms.
By Jared Rothstein | Feb 23, 2026 12:42 PM EST
Quick background on the food traceability rule
- The food traceability rule is intended to improve foodborne outbreak responses by establishing recordkeeping requirements for certain facilities that manufacture, process, pack, or hold high risk foods. The rule, finalized in Nov. 2022, was a key output of the FDA Food Safety Modernization Act. Foods the agency has selected for inclusion on the Food Traceability List are subject to the rule. Regulated entities must maintain records for Critical Tracking Events through the supply chain for FTL foods, such as packing, shipping, receiving, and transformation. These CTEs must be associated with key data elements, which encompass descriptive information about the food such as location, quantities, dates, lot codes. Regulated entities must also establish and maintain a traceability plan that details company procedures used to maintain records, identify foods on the FTL, and procedures for the assignment of traceability lot codes. The final rule established Jan. 20, 2026, as the deadline for compliance.
- Implementation by the food industry is an ongoing challenge. The regulatory impact analysis of the rule estimated that “20-year annualized costs of the rule range from about $63 million to $2.3 billion, with a primary estimate of $570 million per year.” In addition to the cost of investing in new systems and processes, the food industry has faced practical difficulties with navigating compliance including lack of standardization for traceability lot codes, difficulties with receiving accurate data from suppliers, lack of interoperability across traceability technology platforms, and limited familiarity with the rule across the food industry supply chain. The FDA has made efforts to provide clarity and outreach on the rule including by continuously updating its FAQ page, publishing a small entity compliance guide, issuing templates for traceability plans and electronic sortable spreadsheets, and regularly attending industry conferences and events to educate about the rule.
- In response to implementation challenges, the FDA in August 2025 proposed a 30-month extension for traceability rule compliance. Before finalizing the rule, Congress acted by including the delay provisions in the fiscal year 2026 Ag-FDA funding bill, which prohibited the agency from using its funds “to administer or enforce” the food traceability rule before July 20, 2028. The bill also directed the agency to meet with regulated entities including farms, warehouses, retail food establishments, and restaurants quarterly to identify and implement flexibilities related to the rule’s lot-level tracking requirement and develop guidance on these flexibilities to satisfy rule compliance within 180 days of enactment. The legislation also required the FDA to assist and engage in pilots “regarding how to handle food waste recovery, reclamation, intra-company transfers, customer returns under the rule.” The agency also received a directive to evaluate covered entities’ recordkeeping and management systems and to assist in identifying any technical difficulties for implementation, as its resources may allow.
Overview of FDA’s draft guidance
- On Feb. 20, the FDA published a Federal Register notice announcing the availability of draft guidance titled “Questions and Answers About Requirements for Additional Traceability Records for Certain Foods.” The notice stated that the guidance, once finalized, will represent the agency’s current thinking on implementation of the rule and will include questions and answers to support industry compliance and understanding of the rule’s requirements. “Topics covered in this draft guidance include additional information on requirements for farms, food obtained from fishing vessels, raw molluscan shellfish, retail food establishments and restaurants, commingling, initial packing of a food, transformation of a food, the traceability plan, recordkeeping, and the [Food Traceability List],” the agency wrote.
- The 31-page draft guidance covers a wide range of questions and answers about the traceability rule. This includes the applicability of exemptions for certain entities such as farms, farmers’ market stalls, fishing vessels, first land-based receivers, retail food establishments, and restaurants; applicability of the rule to activities such as commingling, initial packing, and transformation; and information related to food traceability plans, the food traceability list, and recordkeeping requirements. The agency emphasized that, as with all guidances issued by the FDA, they “should be viewed only as recommendations, unless specific regulatory or statutory requirements are cited. The use of the word should in Agency guidances means that something is suggested or recommended, but not required.”
Analysis, points of interest, and next steps
- The guidance clarifies that breaking of pallets is not, in and of itself, a transformation event. The agency distinguished between an event such as the manufacturing, processing, repacking or changing of a food, and removal and separation of a case of food. As an example, “if a distribution center breaks a pallet to remove one case (or breaks a case to remove an item, such as a jar of peanut butter) – for example, because they only need one case to fulfill a customer’s order – this does not constitute transformation. The contents of the pallet are not being repacked or otherwise transformed. In this situation, the transformation KDEs would not need to be maintained, the TLC would not change, and the distribution center would not become the TLC source,” the agency explained.
- The agency suggested that both suppliers and receivers will be held responsible for inaccurate or incomplete recordkeeping. The guidance emphasizes that each entity has an independent responsibility to adhere to the rule’s requirements for the critical tracking events performed, whether it be maintaining accurate shipping or receiving KDEs, and that relieving receivers of responsibility would undermine the purpose and effectiveness of the rule. “In some situations, FDA might request records from multiple covered entities in one FTL food’s supply chain (e.g., from both you and your supplier). In other situations, we might only request records from one covered entity in the food’s supply chain. When we find that a firm’s data that is required under the Food Traceability Rule is inaccurate or incomplete, we consider the public health impact and any voluntary corrective action by the firm when determining regulatory follow-up. As a practical matter, we routinely allow firms an opportunity to make voluntary corrective actions, which could include working to correct data inaccuracy, including working with the source of inaccurate or incomplete data,” the agency explained, indicating that enforcement circumstances will likely be case dependent.
- The guidance clarifies the rule’s partial exemption for routine ad hoc purchases of food made by restaurants and retail food establishments. “The RFE (or restaurant) that made the sale is fully exempt, while the RFE or restaurant that made the purchase must only maintain a record documenting the name of the product purchased, the date of purchase, and the name and address of the place of purchase. In many cases, the required KDEs for the ad hoc purchase can be documented by a sales receipt,” the agency explained. The FDA emphasized that this arrangement is due to the impracticality of expecting a cashier to ascertain and exchange key data elements for the food in a situation where the purchaser is operating as a typical consumer such as through the check-out line. However, adding complexity to the circumstances, the FDA noted that certain firms, such as wholesale membership clubs, may be able to provide detailed purchase information to their members upon request. And if such is the case, “the RFE or restaurant that made the ad hoc purchase could consider the wholesale membership club to be the holder of the records that are required under the partial exemption, as long as the purchasing RFE or restaurant can provide the required records to FDA upon request within 24 hours.” The guidance suggests that the initial traceability obligation falls on the purchaser to either provide or establish a means to retrieve the relevant records with such ad hoc purchases.
- Likewise, ad hoc intracompany shipments of food between RFEs and restaurants are also subject to the partial exemption. Such food must have been intended to be sold directly to consumers before being redirected to another establishment. The agency will “consider factors such as whether the transaction is outside of the receiving entity’s usual practice, and whether the entity selling or providing the FTL food had already placed the food on the shelf for purchase by consumers (in the case of an RFE) or moved it to the area where it could be utilized by the kitchen (in the case of a restaurant)” to determine whether a shipment is considered ad hoc versus a regular practice of sharing inventory. This ad hoc exemption also applies in situations in which a third party utilized by a purchasing entity makes an ad hoc purchase on their behalf from another RFE or restaurant.
- For continuous processing events, the agency emphasized that rule coverage is dependent on food at the start and end of the processing event. Intermediate FTL foods that may briefly exist during continuous processing would not need traceability records, as transformation KDEs are required when an event leads to a FTL output. Companies would only need to maintain receiving or shipping KDEs when there is an FTL food at the beginning of end of the continuous process. On the flipside, “a single processing event that begins with a food not on the FTL (whole strawberries) and results in a food not on the FTL (frozen sliced strawberries)” would not need to maintain any records under the rule. The same goes for a non-FTL food that is continuously processed into an intermediate FTL food and then is consequently subject to a kill step, though the agency emphasizes that documentation of the kill step is necessary to qualify for that exemption.
- The use of stickering for internal tracking is not in of itself considered an act of relabeling. The FDA emphasized that relabeling as part of a transformation activity, such as repacking or changing the brand identity of the food product, is what is covered under the rule. On the other hand, stickering a case of food or adding a pallet license plate to assist with internal tracking and management falls outside the context of a transformation activity.
- The agency clarified the differences between intracompany and intercompany shipments for rule coverage. For intercompany shipments of food between two companies at the same street address, such as a sushi bar that buys FTL ingredients from the grocery store it operates within, shipping and receiving records would need to be maintained by both companies, and the agency notes that many elements of the location description will be the same in both entities’ records. Meanwhile, for intracompany movement of food, shipping and receiving KDEs are only needed when the movement occurs from one street address to another address. The FDA emphasizes that the rule seeks to avoid situations where movement “from one dock at a distribution center to another dock at the same distribution center, which might be a fairly large distance away – could be seen as a shipping and receiving event.”
- The guidance seeks to distinguish fresh-cut versus trimmed produce for coverage under the FTL. The agency explained that if produce is no longer in its whole state after being chopped, diced, peeled, riced, shredded, sliced, torn, or spiralized, it is considered fresh-cut. More limited alterations however, such as the removal of parsnip root tails or trimming the outer leaves of a head of lettuce, do not alter the produce sufficiently to no longer being in a whole state. Firms would likely need to make a determination based on degree of alteration to determine if a produce item is considered fresh-cut for the purposes of the FTL.
- The guidance clarifies that the rule’s monetary exemption for farms with average annual sales revenue of less than $25,000 over the past three years relates to the value of all produce sold by the firm, regardless of whether it is on or off the FTL. The monetary threshold also does not include non-produce items, such as for farms that also make other agricultural products such as dairy. The agency also acknowledges that any farm that qualifies for the monetary exemption under the FSMA Produce Safety Rule is also exempt from the traceability rule, which should minimize work by entities to ascertain their compliance obligations. Firms should consider maintaining appropriate documentation and regularly reconfirming that they remain under the monetary threshold to demonstrate they qualify for the exemption.
- Comments are due on the draft guidance 90 days after the date of publication in the Federal Register – May 21, 2026. Stakeholders should evaluate the guidance closely and identify additional examples, scenarios, and questions the agency should address within the structure of this document.
To contact the author of this item, please email Jared Rothstein ( jrothstein@agencyiq.com)
To contact the editor of this item, please email Karen Early ( kearly@agencyiq.com).