Coca-Cola is acknowledging that it was the company that alerted federal regulators about low levels of fungicide in its own orange juice and in juice made by its competitors.
The warning prompted juice prices to rise, and it increased government testing for the residue.
The Food and Drug Administration and the Environmental Protection Agency have said orange juice is safe to drink.
Coca-Cola makes Minute Maid and Simply Orange brands of orange
In a letter to the Juice Products Association earlier this week, an FDA official said the agency will start testing shipments of orange juice at the border, and detain any that contain traces of the chemical. Because it's not approved for use in the United States, any amount found in food is illegal. But because the FDA doesn't believe the levels of residue are harmful, the agency won't remove any juice currently on store shelves.
The discovery comes after the FDA said it would step up testing for arsenic in apple juice. FDA officials said last year that the agency is considering tightening restrictions for the levels of arsenic allowed.