3.5.4 Management of Outsourced Processing & Packing

Confusion here on about how a process works and if it would be a requirement of BRC Standard 7, Clause 3.5.4.

For example - Supplier processes and packs crab meat in cups.  Supplier sells to a customer that they know will "repack" the crab meat.  Customer takes the crab meat and put in own cup with new label then turns right around and ships out.  So only stored to the customer facility 1-2 day max before being sold.

1. Would this be considered outsourced processing and packing and handled under 3.5.4?

2. Or, would it be considered a raw material and then handled under 3.5.1 & 3.5.2?

3. Then again others think the process doesn't apply to BRC at all. 

Anyone have any thoughts/clarity on how this process would be handled?    Any information would greatly be appreciated.  Thanks.

If the crab meat goes to the people who are repacking it then comes back to you or is labelled with your label then I would say it's outsourced processing or packing.  If you are supplying bulk crab to someone who then packs the crab into their packaging with their label then you are a supplier and they're the customer.  

Thank you for your replay, What is needed for outsourcing processing or packaging ?  Is this cover in 3.5.4 Standard