U.S. Redefines “Shellfish” to Include Cephalopods and Crustaceans

On June 23 the U.S. Fish and Wildlife Service (FWS) issued a final rule that removes the phrase “having a shell” from the federal definition of “shellfish.” The revised definition now covers aquatic invertebrates in the phylum Mollusca—oysters, clams, squid, octopus, cuttlefish—and crustaceans such as lobster, shrimp and crab. The rule becomes effective on July 23, 2026.

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The prior definition limited “shellfish” to mollusks with external shells, excluding cephalopods and creating uncertainty at ports. The SBA Office of Advocacy and the Mid-Atlantic Fishery Management Council have urged clarification, arguing that ambiguous classification imposed unnecessary burdens on squid harvesters and exporters.

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According to the SBA, companies shipping squid incur a $93 base inspection fee per shipment, a $100 licensing fee and overtime charges. These fees disproportionately affect small firms lacking the financial capacity of larger operators.

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FWS officials said the amendment aligns regulatory language with scientific taxonomy, eliminating “inconsistent treatment of mollusks and related species at U.S. ports of entry.” The SBA warned that the definition imposed “unnecessary regulatory and financial burdens” on squid harvesters. The Mid-Atlantic Fishery Management Council said squid producers faced “redundant, time-consistent, and costly licensing and inspection requirements” not applied to other commercial fishery products.

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Critics argue the outdated classification generated avoidable costs and duplicated oversight for businesses, and that removing the shell requirement will streamline compliance and reduce fees without weakening wildlife protection.

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By grouping cephalopods with other shellfish, the rule clarifies labeling and trade terminology and reflects medical literature that already lists squid, octopus and cuttlefish among foods that can trigger shellfish allergies, reinforcing clinical guidance without creating new health risks.

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The sources do not provide quantitative estimates of cost savings after implementation or detail how enforcement agencies will monitor compliance under the definition.

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• “Small businesses are much less able to shoulder these unnecessary costs than their larger counterparts,” — U.S. Small Business Administration, Office of Advocacy

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• “squid producers are subject to redundant, time-consuming, and costly licensing and inspection requirements.” — Mid-Atlantic Fishery Management Council

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• “commercial fishery products are exempt from these regulations, which are intended to prevent the unauthorized trade of endangered and protected wildlife.” — Mid-Atlantic Fishery Management Council

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• “We recommend that squid be reclassified as either ‘shellfish’ or ‘fishery products’ and therefore exempt from the USFWS inspection and user fee system,” the group added.” — Mid-Atlantic Fishery Management Council

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The revised definition will be enforceable on July 23, 2026; FWS will issue guidance to ports of entry and customs officials, and groups will monitor the rule’s impact on inspection timelines and fee structures.

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