The United States has officially classified squid, cuttlefish and octopus under shellfish regulations, streamlining import and export procedures.

The U.S. Fish and Wildlife Service (USFWS) has recently issued a new rule that formally classifies cephalopods including squid, cuttlefish and octopus under the definition of "shellfish" in federal regulations. Set to take effect on July 23, the new rule aims to resolve longstanding regulatory ambiguities, eliminate overlapping oversight in import, export and inspection procedures, and cut trade costs for America’s cephalopod industry.

The U.S. government estimates this single policy adjustment will help relevant small and medium-sized enterprises save at least USD 2.8 million in compliance expenses.

Cephalopods Long Trapped in a Regulatory Gray Area

The revision primarily amends the definition of shellfish under the U.S. Fish and Wildlife Service Regulations. Previously, federal rules defined shellfish as "aquatic invertebrates with external shells". Given that squid and cuttlefish only possess internal shells while octopuses have virtually no shells at all, there had never been a clear legal determination on whether these species qualified as shellfish under the statute.

This definitional ambiguity subjected cephalopod products to duplicated regulatory oversight throughout import and export declarations as well as inspection processes.

Many squid shipments were treated both as conventional fishery products and wildlife commodities subject to wildlife regulatory requirements. Businesses were burdened with extra administrative filings, additional inspections and associated fees—mandates that did not apply to most commercially harvested seafood.

U.S. cephalopod processors and traders had pushed for revisions to the rules for years, seeking to eliminate redundant oversight and lower operational expenditures.

Industry: New Rule Will Slash Significant Time and Cost Burdens

Wayne Reichle, President of Lund’s Fisheries, a major U.S. squid processing and export enterprise, stated the new rule addresses an onerous administrative burden the sector has endured for decades.

He expressed gratitude to the U.S. administration for advancing the reform, noting businesses will see tangible improvements in administrative workload, time expenditures and operational efficiency moving forward.

Industry insiders said the rule will spare companies from duplicate filings and repeated inspections stemming from ambiguous classification of cephalopods, further boosting import and export clearance efficiency.

For processing firms specializing in squid, cuttlefish and octopus, the policy shift will directly reduce operating costs and strengthen the competitiveness of U.S. cephalopod products on global markets.

Projected Savings of At Least USD 2.8 Million for U.S. Businesses

The Office of Advocacy under the U.S. Small Business Administration (SBA) said the amendment will deliver a more predictable regulatory landscape for small and medium fishery operators while removing unnecessary compliance costs.

The agency calculates affected enterprises will save a minimum of USD 2.8 million once the rule enters force. Everett M. Woodel Jr., Acting Chief Counsel, commented that the USFWS fully incorporated feedback from small and medium fishery businesses. The revised definition delivers the long-sought regulatory certainty companies need to conduct their operations smoothly.

The Office of Advocacy explained the reform forms a key component of the Executive Order titled Restoring American Seafood Competitiveness, issued by the Trump administration in April 2025.

In recent years, the U.S. government has consistently moved to reduce administrative burdens on fishery businesses to bolster the competitiveness of the domestic seafood sector.

Complementary Reforms Remain Underway

The reclassification of cephalopods represents only one component of broader U.S. fishery regulatory reforms. Back in April this year, the SBA formally submitted comments to the USFWS endorsing the rule change.

Concurrently, the agency recommended the U.S. government open certain marine protected areas to commercial fishing. It also urged the National Oceanic and Atmospheric Administration (NOAA) to cover the costs of at-sea observers for distant-water fishing vessels, or repeal the federal mandate requiring mandatory on-board federal observers, to further drive down fishery operators’ overheads.

Janet Fogarty, New England Regional Representative of the SBA, said throughout the Trump administration, the agency maintained ongoing dialogue with commercial fisheries nationwide. It engaged industry stakeholders via regional conferences and collected enterprise feedback to push federal regulators to address sector-wide concerns.

Positive Implications for Global Cephalopod Trade

The United States ranks among the world’s top consumers and major importers of squid, cuttlefish and octopus.

While the regulatory overhaul does not alter product admissibility standards or food safety compliance requirements, it streamlines import, export and inspection workflows for cephalopods, cutting corporate administrative costs and accelerating customs clearance.

For international suppliers that have long exported squid, cuttlefish and octopus to the U.S., clearer regulatory procedures will reduce institutional trade barriers and enhance trade facilitation for the U.S. market.

Upon the new rule’s official implementation on July 23, decades-long disputes over the regulatory classification of U.S. cephalopod products will come to an end, granting relevant businesses a consistent, unambiguous regulatory framework governing import, export and trade management.

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