The “Fake Tuna” That’s Disrupting The Market

09 September 2015

There’s a “fake tuna” that has started severely disrupting the US food service canned tuna market, and American imports of it are rocketing. According to sources who stressed that they wish to stay anonymous, Euthynnus Affins and Auxis Thazard, more commonly known as bonito or frigate tuna, and similar species, are being imported into the United States at significantly low duties, and are being sold as Chunk Light tuna. Data shows it concerns hundreds of 20ft containers.

Traditionally, the name ‘Chunk Light’ on the label has usually referred to skipjack tuna, and sometimes tongol in the US canned tuna market. However, that now seems to be changing, at least in the food service sector.

The disruptor, the bonito species, is not only much cheaper than skipjack tuna, but it can also be imported into the US at just four percent duty, giving it two major cost advantages over traditional skipjack chunk light. Canned skipjack in brine imported in US ports is stamped with a 12 percent duty throughout the year. In January each year, there is a limited single duty (6%) quota.

There is a distinct difference in quality between skipjack and these “tuna-like” species, which are not commonly regarded as tuna, and related more closely to the mackerel or sardine group. This is one of the reasons why their stocks and catches are not monitored and managed by any of the tuna RFMO’s.

According to our information, at the end of 2013, one major US canned food importer of catering size tuna, requested and received from the US customs a ruling on the tariff classification of this canned fish in brine coming from Vietnam, under the tariff code 1604.19.1000 (Bonito, Yellowtail and Pollock ATC not in oil).  The US Customs department confirmed to the importer that these species could be cleared at customs under this tariff code with a four percent duty.

According to statistics from NOAA, since this US customs ruling, US food service-size (66.5oz) imports under the tariff code for “canned bonito, yellowtail and pollock in brine” have exploded over the last two years. From January-July 2015, already 3,346 tons of the product have been shipped to the United States, the majority of which (75 percent) has been supplied by Chinese exporters. With totals of 40-50 containers being imported into the US during some months, this year’s total American import of this product could reach 500 containers or more.

A quick search of Alibaba.com, which powers 80 percent of online commerce in China, shows several Chinese traders offering catering pack canned tuna (bonito) products, which state Chunk Light on the can.  This product appears to be packed in Ningbo.

A web search also produces copies of B/L of US companies importing Chunk Light Tuna in Water into the New York port from Ningbo. The B/L showing the product described as CHUNK LIGHT TUNA PACKED IN WATER XXXX BRAND CHUNK LIGHT TUNA (“FRIGATE AUXIS THAZARD SPECIES”) PACKED IN WATER, VEGETABLE BROTH AND SALT.

One of our sources stressed that bonito is “fake tuna”, and expressed concerns that if exporters are using it disguised as skipjack, what’s stopping them from using yellowtail or pollock the next time? “Where does it end?” he asks.

The catering or food service market in the United States is a sector that is dominated by 2-3 large importers, but also comprises of many other smaller importers.

Sources have highlighted that this sudden huge influx of frigate tuna labeled as chunk light could totally destroy the price levels for the foodservice canned skipjack tuna market in the US; not so quality-conscious buyers that are more focused on price, could be opting for the cheaper “chunk light” product, possibly unaware that the skipjack (katsowonus pelamis) is replaced by frigate tuna or auxis thazard.

Not only is this destroying the chunk light food service market price, and lowering the quality level, but it is also creating a major shift in trade flows. It appears that China has greatly increased its exports of this product to the US, at the expense of traditional canned skipjack exporters, like Thailand, Vietnam and the Philippines.

It has also been expressed by Atuna’s anonymous sources that packers in Asia of Chunk Light tuna (skipjack), who have no access to Euthynnus Affins, have now been put under pressure to write on their shipping documents that their skipjack product is Euthynnus or Auxis Thazard, in order to obtain the four percent duty tariff number.

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