USAID REGIONAL ECONOMIC COOPERATION (REC) PROJECT

Transcription

1 USAID REGIONAL ECONOMIC COOPERATION (REC) PROJECT MARKET RESEARCH FOR EXPORT GROWTH OPPORTUNITIES FOR FRESH AND PROCESSED FRUITS AND VEGETABLES FROM UZBEKISTAN TO LATVIA AND THE EUROPEAN UNION COUNTRIES. April 7, 2015 This publication was produced for review by the United States Agency for International Development. It was prepared by expert on export development with European Union David Hefets.

2 USAID REGIONAL ECONOMIC COOPERATION (REC) PROJECT MARKET RESEARCH FOR EXPORT GROWTH OPPORTUNITIES FOR FRESH AND PROCESSED FRUITS AND VEGETABLES FROM UZBEKISTAN TO LATVIA AND THE EUROPEAN UNION COUNTRIES. Contract AID-176-TO April 7, 2015 The author s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

3 Uzbekistan to Latvia and the European Union countries.2

4 TABLE OF CONTENTS List of abbreviations and definitions...4 REC USAID Project...5 General provisions...7 European Union market overview of fruit and vegetables, dried fruits and nuts...8 Access of Uzbekistan fruit and vegetables to the European Union market...12 Advantages of working with the European Union countries...18 Cooperation with European importers Basic requirements for the products imported to EU...19 EU requirements for imported agricultural products...20 Requirements of the Importer...20 Requirements of retail chain...21 Requirements of ultimate buyers...21 Regulations and procedures of the customs and phytosanitary inspections on the border of the European Union countries Responsibility of the Producer...25 Responsibility of the Consignor...26 Right packaging...26 Right loading of goods for good s safety...27 Transportation conditions (temperature regime & humidity)...28 Registration of transport documents...30 Responsibilities of the transport and logistics partner...31 Responsibility of driver...32 Features of the rail way transportation...32 Responsibility of the Importer...32 Rights of the Importer in case of problem identification of goods...34 Uzbekistan to Latvia and the European Union countries.3

5 Main problems of export of goods to the EU and ways of their solutions Conclusion...35 Annexes Annex Annex Annex Annex Uzbekistan to Latvia and the European Union countries.4

6 LIST OF ABBREVIATIONS AND DEFINITIONS EU European Union TIR Carnet Customs Transit Document, entitling to transport the Goods across borders in Customs' sealed car bodies or containers with simplification of Customs procedures TIR Transport International Routier CARNET TIR Customs Convention on International Transport of the Goods under cover of TIR Carnets CMR International Waybill US United States of America A/C Agricultural VAT Value Added Tax Global G.A.P. Good Agricultural Practice, the system of Standards to ensure the safety of agricultural products REC Regional Economic Cooperation Project TIR Transport International Routiers USAID United States Agency on International Development US Agency for International Development Uzbekistan to Latvia and the European Union countries.5

7 REC USAID PROJECT REC facilitates trade among Central Asian countries, Afghanistan, as well as large trading partners of these countries. Through capacity building initiatives and gender integration strategies, REC expands firms export potential, while building business network connections in the region. REC also works towards improving Central Asian countries pro-trade policies and procedures, increasing transport corridor performance, supporting Tajikistan s post WTO accession activities, and strengthening the capacity of trade promotion agencies. USAID s REC Project undertakes a range of trade facilitation activities within its six components: Strengthening Export Partnership Groups (EPG) and encouraging the creation of new EPGs. REC continues to build and reinforce EPGs and cultivates new groups so that participating firms increase their exports. Evaluating the export potential of Kazakhstani and Uzbek firms and industries through market research. REC provides technical assistance to exporters from Kazakhstan and Uzbekistan through market research. REC addresses export capacity shortcomings, identifies formal and informal barriers to trade, and proposes solutions. Testing barriers to export along the export chain through selected pilots. The project will continue to support existing suppliers to the US Department of Defense in Afghanistan through 2014 and post-2014 as needed. REC will also assist businesses that currently supply their products to the US DOD in Afghanistan to identify alternative business channels for their products regionally and internationally. Supporting Women s Economic Symposium (WES) follow-on activities. Through its grant activities REC will continue its support for building the capacity of and linkages between women in Central Asia and between Central Asia and South Asia. Support Tajikistan s post WTO accession activities. REC helps Tajikistan to further develop and fully implement WTO related legislation, fulfill commitments taken during the accession process, thus promoting trade liberalization and improving business environment. Helping Central Asian countries implement pro-trade policies, regulations and processes. REC will continue to consult with regional stakeholders to identify the chief obstacles to transport corridor performance improvement and organize training and roundtables to mitigate them. Uzbekistan to Latvia and the European Union countries.6

8 GENERAL PROVISIONS This report includes the European market overview of fresh fruit and vegetables, dried fruit and nuts, the required procedures and regulations for fruit and vegetable exports to the European Union and customs and phytosanitary inspections. The report also contains a detailed description of the responsibilities of all participants in the supply chain from producer to the ultimate purchaser. The report concludes brief overview of the main problems faced by producers and ways of solution the problems. Annexes 1 to 4 include the list of official sources of EU directives on export of fruit and vegetables, conditions of production and transportation and samples of some supporting documents. The report provides the information on the issues to all stakeholders, Government decision-makers in the region, and to make a certain contribution to the dialogue on regional economic cooperation in Central Asia. The electronic version of the report is posted on the web page Uzbekistan to Latvia and the European Union countries.7

9 Объем в Тысячах USD EUROPEAN UNION MARKET OVERVIEW OF FRUIT AND VEGETABLES, DRIED FRUITS AND NUTS The European Union (EU) is the largest single market in the world. It is the Customs Union of 28 member states with the population of approximately 500 million people and a Single Customs territory. Agricultural products as fresh fruit, dried fruit, nuts and melons produced in the Republic of Uzbekistan are very popular in the European Union. This category of products is integrated into group 08 of the Global Harmonized System of Coding of the Goods. Further statistical data presented in this report are in this category of products ( The Chart 1 shows the total amount of imports in the EU of products of fresh fruit, dried fruit, nuts and melons that is constantly growing. Over the past 5 years, it has grown by 26.5% - from billion US dollars in 2010 to billion US dollars in Chart 1. Import of fresh fruit, dried fruit, nuts and melons in the European Union Import of fresh fruit, dried fruit, nuts and melons in the EU Imported in Imported in Imported in 2012 Imported in Imported in 2014 The biggest importing country in this category of products is Germany, which imports more than 20% of total volume of products imported in the EU. Table 1 shows the volume of imported agricultural products in the countries of the EU. Table 1. The volume of imported agricultural products in the EU countries Products: group 08 Fruit and dried fruit, nuts, citrus fruit, melons 1 Source: ITC calculations based on statistics of UN COMTRADE. 2 Measurement unit: in thousands of US dollars Importer Import 2010 Import 2011 Import 2012 Import 2013 Import International Harmonized System of Coding of Goods 2 Uzbekistan to Latvia and the European Union countries.8

10 European Union (EU 28) Germany Netherlands United Kingdom France Belgium Italy Spain Poland Sweden Austria Denmark Lithuania Portugal Czech Republic Finland Ireland Romania Greece Slovakia Hungary Luxembourg Slovenia Latvia Croatia Bulgaria Estonia Cyprus Malta The most competitive products that import in the European countries are grapes (fresh or dried), dried fruit (apricots, prunes), nuts and melons. The table 2 presents the structure this category of products in the structure of the imported products and has a significant volume Table 2. Imports of Goods of Group HS-08 (fruit, dried fruit, nuts, melons) in EU countries with division into Subgroups 3 Source: ITC calculations based on statistics of UN COMTRADE. 4 Measurement unit: in thousands of US dollars Product Product Name Volume of imports into the EU (EU 3 International Harmonized System of Coding of Goods 4 Uzbekistan to Latvia and the European Union countries.9

11 Code 28) from other countries Volume in 2012 Volume in 2013 Volume in 2014 Total imports in the EU '0802 Nuts, not listed in other location '0805 Citrus fruit, fresh or dried '0803 Bananas, fresh or dried '0806 Grapes, fresh or dried '0810 Fruit, not listed in other location, fresh Dates, figs, pineapples, mangoes, '0804 avocados, guavas '0808 Apples, pears and quinces, fresh Apricots, cherries, peaches, nectarines, '0809 plums and sloes, fresh '0811 Frozen fruit and nuts Melons (including watermelons) and '0807 papayas, fresh '0801 Brazil nuts, cashews and coconut '0813 Dried Fruit Pre-canned fruit and nuts (not suitable '0812 for direct consumption) '0814 Peel of citrus and melon In European countries, we can see a sustainable growth of import volumes for each of the above-mentioned products. Over the past 5 years, the most impressive growth was in the subgroup of nuts. From 2010 to 2014, the volume of imports of nuts in Europe grew by 59%, as shown in Chart 2. Chart 2. Volume of imports of nuts in the EU (in thousands of US dollars) Source: ITC calculations based on statistics of UN COMTRADE Imported in Import of nuts in EU Imported in Imported in 2012 Imported in Imported in 2014 The nuts are on the second place of import volume in the category of dried fruit. Chart 3 shows the volume of imports of dried fruit in Europe from 2010 to 2014, which has grown by 59%. Uzbekistan to Latvia and the European Union countries.10

12 Chart 3. Volume of imports of dried fruit in the EU (in thousand US dollars) Import of dried fruits in EU Imported value in 2010 Imported value in 2011 Imported value in 2012 Imported value in 2013 Imported value in 2014 Source: ITC calculations based on statistics of UN COMTRADE. Chart 4 shows that the volume of imports of melons and watermelons in Europe from 2010 to 2014 that has been increased by 24%. Chart 4. Volume of imports of melons and watermelons in Europe from 2010 to 2014 (in thousands of US dollars) Import of melons abd watermelons in EU Imported in 2010 Imported in 2011 Imported in 2012 Imported in 2013 Imported in 2014 Source: ITC calculations based on statistics of UN COMTRADE. Chart 5 shows that the volume of imports of grapes (fresh and dried) in Europe from 2010 to 2014 has increased by 19%. Chart 5. Volume of imports of grapes (fresh and dried) in Europe from 2010 to 2014 Uzbekistan to Latvia and the European Union countries.11

13 Import of grapes (fresh and dried ) in EU Imported in 2010 Imported in 2011 Imported 2012 Imported in 2013 Imported in 2014 Source: ITC calculations based on statistics of UN COMTRADE. ACCESS OF UZBEKISTAN FRUIT AND VEGETABLES TO THE EUROPEAN UNION MARKET Chart 6 shows that over the past 5 years the exports of fresh and processed products from Uzbekistan to the EU were increased by 67 %. Chart 6. Volume of exports of agricultural products from Uzbekistan to the EU - HS-08 (fruits, dried fruits, nuts, melons) (thousand US dollars) Export of agriculture products from Uzbekistan to the EU, category HS Value in 2012 Value in 2013 Value in 2014 Source: ITC calculations based on statistics of UN COMTRADE. The structure of export in this category of the products is shown in the table 3. Table 3. Exports of agricultural products from Uzbekistan Uzbekistan to Latvia and the European Union countries.12

14 to EU countries Products: Group HS-08 (fruits, dried fruits, nuts, melons) divided into Subgroups 5 Source: ITC calculations based on statistics of UN COMTRADE. Measurement unit: in thousands of US dollars Product Code Product Name Volume of imports into the EU (EU 28) from Uzbekistan Volume in 2012 Volume in 2013 Volume in /2013 The total amount of imports from Uzbekistan in the EU ,3% '0806 Grapes, fresh or dried % '0813 Dried Fruit % '0802 Nuts, not listed in other location % '0807 Melons (including watermelons) and papayas, fresh % '0809 Apricots, cherries, peaches, nectarines, plums and sloes, fresh % '0810 Fruit, not listed in other location, fresh Table 3 shows that in 2014 the export of all agriculture products from Uzbekistan was increased. The most impressive growth was in the category of dried fruit that increased in 4.8 times. Table 4 shows the statistics of export of agricultural products from Uzbekistan to the European Union countries. Table 4. List of European importers of agricultural products from Uzbekistan in the category HS-08 (fruits, dried fruits, nuts, melons)6 Country- Importer Total export to World counties European Union (EU28) Aggregation Import 2010 Import 2011 Import 2012 Import 2013 Import percent age increas e in % % Latvia % Germany % Austria % Italy % Netherlands % Poland % France % United Kingdom % Romania % Estonia % Spain % 5 International Harmonized System of Coding of Goods 6 International Harmonized System of Coding of Goods Uzbekistan to Latvia and the European Union countries.13

15 Lithuania % Finland % Czech Republic % Luxembourg % Belgium Bulgaria Croatia Cyprus Greece Portugal Slovakia Slovenia In 2014, this category of products that were exported from Uzbekistan to the European Union has amounted to 5.7% of total exports in this group. Latvia is the leader among European countries importing agricultural products from Uzbekistan. The share of Latvia is 42% of total exports from Uzbekistan to Europe. The analysis shows that Latvia takes the leading place for all the sub-products of this category: grapes (fresh or dried), dried fruit (apricots, prunes), nuts and melons. Table 5 shows that 64.8% of total exports of grapes and raisins from Uzbekistan to the EU are accounted for Latvia. Table 5. List of European exporters of agricultural products from Uzbekistan in the category of grapes (fresh and dried) Source: ITC calculations based on statistics of UN COMTRADE. Measurement unit: in thousands of US dollars Importer European Union (EU 28) Aggregation Import 2010 Import 2011 Import 2012 Import 2013 Import percentage increase in % Latvia % Germany % Austria % Poland % United Kingdom % Netherlands % Estonia % Lithuania % Spain % Luxembourg % Belgium Bulgaria Czech Republic Uzbekistan to Latvia and the European Union countries.14

16 Finland France Greece Italy Portugal Slovakia Slovenia The table 6 shows that in the category of dried fruit the share of the EU countries accounts for 21.3% of total export of these products from Uzbekistan. According to 2014 data, among the EU countries on the first place is Germany, the share of which is accounted for 50% of Uzbek exports to the EU, and on the second is Latvia, that accounted for 21 % of total volume. Table 6. List of European importers of agricultural products from Uzbekistan in the category of dried fruit Group: 0813 Dried fruit Source: ITC calculations based on statistics of UN COMTRADE. Measurement unit: in thousands of US dollars Importer Import 2010 Import 2011 Import 2012 Import 2013 Import 2014 Total World countries European Union (EU 28) Aggregation Share of total volume Germany % Latvia % Austria % France % Netherlands % Poland % Finland % Estonia % Czech Republic % Lithuania % Croatia % The table 7 shows that in 2014, the share of products of the category of melon and watermelon exported from Uzbekistan to the European Union has amounted to 3.7% of total exports in the this group. The share of products that exported from Uzbekistan to Latvia accounts for 75.9% of the total European exports from Uzbekistan. The export of products from Uzbekistan to Latvia also has significant share in this category of products. Table 7. List of European countries importing products from Uzbekistan in the category of melon and watermelon Source: ITC calculations based on statistics of Eurostat since January 2014 Uzbekistan to Latvia and the European Union countries.15

17 Measurement unit: in thousands of US dollars Importer Import 2010 Import 2011 Import 2012 Import 2013 Import 2014 Share of total volume Total World counties European Union (EU ) Aggregation Latvia % Germany % Estonia % Poland % Lithuania % Table 8 shows that 30.8% of total volume of grapes and raisins imported by Latvia from Uzbekistan producers. In the category of dried fruits, this share is 15.6%. Table 8. Importer of agricultural products from Uzbekistan and other countries to Latvia (category HS-08 - fruits, dried fruits, nuts, melons) Sources: ITC calculations based on statistics of Eurostat since January 2014 Unit in thousands of US dollars Product Code 08 Product Name Imports to Latvia from Uzbekistan Imports to Latvia from other countries Edible fruit, nuts, peel of citrus fruits and melons % Uzbekistan to Latvia and the European Union countries.16 Share of imports from Uzbekistan to Latvia of the total volume in 2014 '0806 Grapes, fresh or dried % '0813 Dried Fruit % Melons (including watermelons) and '0807 papayas, fresh % '0802 Nuts, not listed in other location % Apricots, cherries, peaches, nectarines, '0809 plums and sloes, fresh % '0810 Fruit, not listed in other location, fresh % The analysis of statistics shows that in 2014 there was a significant growth in the volume of exports from Uzbekistan to the EU as in whole, and especially to Latvia (Table 8). This is noticeable in the category of dried fruit and melons. Primarily, this is due to the opening of Uzbekistan Trading House, which began its operations in early 2014.

18 Currently, the agriculture producers in Uzbekistan have a strong interest to the European market. This report provides practical information for development of exports of agricultural products from Uzbekistan to the EU. Uzbekistan to Latvia and the European Union countries.17

19 ADVANTAGES OF WORKING WITH THE EUROPEAN UNION COUNTRIES The European Union market opens up for the exporter the access to the largest single market in the world, with a population of nearly 500 million people and the single customs territory. It means that: Working with a partner in one of EU country, you have access to the entire European market. For goods moving within the EU, the Customs duties are not paid. All EU countries have a common Customs Tariff on goods imported from countries outside the EU. Legally imported goods are in free circulation throughout the EU, without any other measures of Customs control. Before you start exporting, you must ensure that your products meet the requirements of EU legislation on the quality and safety, aimed at protecting public health, consumer rights and environmental protection. This requires serious work and improvements in the production process, improvements in product quality up to the international standards. Cooperation with European importers To start working with the European market, you are encouraged to work on the following schedule: 1. Contact with the Importer (Buyer). Here we must note, that the Importer should be a company registered in the EU country that has the appropriate certificate for dealing with agricultural products. 2. Identification of mandatory requirements for import into the country of the Buyer. These requirements are determined by the Legislative Acts of the EU and additional Rules, which necessary to define with your Importer. 3. Determination of the mandatory requirements of the Importer (Buyer). These requirements are usually more severe than the EU legislation and may include a number of additional conditions. To avoid confusion, all the requirements of the Buyer it is recommended to discussed and agreed with company partner in the terms of the Contract. 4. Production and preparation of the products to meet the EU requirements and the requirements of Buyer. At this stage, it is advisable to contact a consultant with experience in organizing of the production cycle and quality control of products. 5. Preparation of documents for initial delivery and dispatch of them to the Importer for verification. It is necessary to agree with the Buyer upon the list of necessary documents and to prescribe them in the Contract. In order to avoid delays at the borders, the documents for verification should be sent in advance of the shipment, when you still can correct the identified non-compliances. Uzbekistan to Latvia and the European Union countries.18

20 6. Sending samples of products to the Importer for testing. This item, usually, is a standard requirement of the Importer. Sending of samples allows reducing the risk of "unpleasant surprises" in supply of large quantities of the goods. 7. Dispatch of products. At this stage, the selection of the reliable carrier is very important. The rapid crossing border controls and security of goods during the transit depends to right carrier. 8. Monitoring of compliance with EU and the Buyer's requirements on the permanent base. This is the necessary condition for creation of long-term relationships with our European partners. All these issues will be covered below. The success of any business is the steady income of the Producer and the Importer (Buyer). There are three factors that are the basis for a stable income of trade in agricultural products: 1. Quality of the product 2. Predictability, i.e. the constant level of service, quality and price, without unpleasant surprises 3. Competitive price, which is dictated by the market situation. In the Contract, each Party will shift the responsibility on to Supplier. This means that in the chain PRODUCER IMPORTER RETAIL CHAIN the risks will be transferred back: PRODUCER IMPORTER RETAIL CHAIN. That also means that in case of any problem with the quality of products, the Retail Chain will make a complaint to the Importer, the Importer will turn, to the Producer. In practice, this means that the Retail Chain and the Importer will try to protect themselves, including in Terms of Delivery the further evidence of the quality of products that may not be necessary, according to official regulations of EC. That is why it is important to find out in advance all the requirements for quality of products, labeling, and registration of documents and to fix them in the Contract commitments, in order to determine the scope of responsibility of the Supplier. BASIC REQUIREMENTS FOR THE PRODUCTS IMPORTED TO EU Import and sales requirements of agricultural products to the EU countries differ from each other substantially. They can be formal or informal. All mandatory (formal) requirements are adopted in the EC Legislation and Regulations. They are posted on the website of the EU Export Helpdesk: The formal requirements should be included in the terms of the Contract between the Supplier and Importer. For example, levels of certain chemical elements that cannot be regulated in the EU normative act, but will affect on the shelf life or taste quality of the goods. Uzbekistan to Latvia and the European Union countries.19

21 Informal requirements is the subjective opinion of a participants of the process (the Customs officer, the Buyer, etc.), which can complicate the importation or sale of the goods. The EU requirements for imported agriculture products Requirements of the EC states are determined by European rules for the importation of the relevant category of products. They include: 1. Formal documentation requirements for import (import of products). 2. Formal requirements for documents confirming compliance with the sanitary standards of the European Union (general and specific). 3. Formal requirements for labeling and packaging. 4. Formal requirements for Invoice value, which are the basis for calculation of taxes on import of products. 5. Informal requirements for the product appearance and cargo (type, color, smell) in the process of checking goods by the sanitary services. All formal requirements should be clarified beforehand of the actual shipment in order to avoid inconsistencies and losses from downtime or loss of the goods. An experienced importer can provide recommendations for informal requirements. Requirements of the Importer Requirements of Importer are determined by the European Code for importation of the relevant category of products and additional terms and conditions set by the Importer in order to obtain guarantees of importation of the goods and the level of product quality. If the Importer is planning to work with major European retail chains, the requirements for quality, shelf life, packaging, etc., may be more strictly. Because in case of violation of these criteria, the importer has the risks to pay heavy penalties to retailers. Here are the basic Importer requirements to the Producer: 1. Requirements for documents to import the goods to EU. These requirements can be both formal (in accordance with the European Code of importation of the products), as well as informal. Thus, the Importer requests to add additional certificates (e.g. the Quality Certificate or Certificate of Fumigation). These documents provide additional assurance to the Importer of quality of the goods. Sending the documents to the Importer beforehand for on-site verification before the actual shipment of the goods is an important step to identify a possible inconsistencies in future 2. Conformity of the goods to the samples. This requirement is important and is generally assigned in the Contract, as the samples are the main standards with which the Importer verifies received product. In the case of discrepancy, the Importer may require a substantial discount or even refuse to pay for the goods. It is important to agree on criteria that will be a comparison of the dispatched shipment with samples. 3. Microbiology and other tests on chemical substances. Quite often, the Importer establishes additional requirements on contaminants of pesticide residues that are more stringent than the formal European Standards. Compliance with these requirements is a guarantee of quality and shelf life of products. Uzbekistan to Latvia and the European Union countries.20

22 4. Shelf life of product. The extremely important indicator is not defined by official European Regulations, but is the necessarily part of any supply Contract. 5. Appearance of product or cargo (type, color, smell). Informal requirement, which can be described and determined by the Importer. 6. Taste. Informal opinion of the Importer, based on which he will decide on further sales of the product. The taste may be affected by the level of different chemicals, so an experienced Importer tries to fix the requirements for such substances in the Standards of microbiological and chemical parameters. 7. Size. Requirements for size of the goods are formal and should be reflected on the label and in the Contract. Requirements of Retail Chain The main criteria that are important for a Retail Chain are: 1. Shelf life. 2. Appearance of the product (type, color, smell). 3. Taste. Only the shelf life of the product is a formal indicator, which is strictly monitored in purchase and sales of product. The other items (appearance and taste) are indicators that reflect the success or failure of the sales of the goods, and are directly dependent on habits of the Buyer. The retail chain does not require verification of conformity with EU regulations; - it is the sole responsibility of the Importer. But, in case of identification of quality problem with the goods (for example, appearance of mold or impurity) by Retail Chain representatives, the Importer is obliged not only completely to remove the defective batch from the particular store, but to identify and remove all the items pertaining to this party from all stores, as well as the goods remaining in-stock balance. Requirements of the Ultimate Buyers. The ultimate buyer is only interested in appearance and taste of the product. The ultimate buyer determines the prospects for further cooperation of the Retail Chain and the Importer. In different countries, habits and preferences of customers may vary. For example, dried apricots with bone (freestone) are unpopular in Western Europe. Customers prefer to buy dried apricots without bones (freestone), despite the fact that its taste may be worse. An experienced Importer should be familiar with the preferences of products in its country and informs about this to a Producer. REGULATIONS AND PROCEDURES OF THE CUSTOMS AND PHYTOSANITARY INSPECTIONS ON THE BORDER OF THE EUROPEAN UNION COUNTRIES Cross border, the Customs and Food and Veterinary Services usually make inspections. Currently, almost 90% of all incoming goods from countries outside the EU pass are thoroughly checked. Only Food and Veterinary Service of Latvia permits the free circulation of goods within the EU borders. In case the negative decision from the Food and Veterinary Service, the goods must be within 30 days destructed or imported to the third country or returned to the Seller back. Uzbekistan to Latvia and the European Union countries.21

23 Obligatory inspections of agricultural products on the EU border are: 1. The Customs inspection. This is the first point inspection on the border of the EU. All tracks and vehicles should pass customs inspection on the EU border. The main criteria of crossing border customs procedure is the compliance with the weights written in the shipping documents, the actual weight of the vehicle with the load. At discrepancy weight, the track or vehicle can be detained at the border, and the goods with a weight greater than indicated in the enclosed documents may be confiscated. 2. Verification of transport and accompanying documents (Invoice, Packing list, CMR, TIR Carnet, Certificate of Origin EUR1). The exact list of documents is recommended to be agreed between the Importer and the Carrier. 3. Phytosanitary control. This inspection is carried out by the Food and Veterinary Service and is intended to prevent entry and spread of microorganisms that could be harmful to plants and plant products in the EU. The competent authority body of the exporting country issues Phytosanitary Certificate; the requirements for this certificate are fixed in the Directive 2000/29/EC. Guidelines for Phytosanitary requirements are translated into the Russian language. Further information can be found in Regulation (EC) No. 1881/2006 (OJ L /12/2006) (CELEX 32006R1881). Phytosanitary control for different products differs from one another. For example, dried fruit the products are tested for compliance with the following standards: Dried apricots - sulfur dioxide SO2, E220 - no more than 2000mg/kg (2000ppm). Prunes - potassium sorbate, C6H7KO2, E202 - no more than 1000mg/kg (1000ppm). Raisins - Ochratoxin A - no more than 10ppb or 10ug/kg. The inspection must be done at the place of production and the test result should be indicated on the label and in the Phytosanitary Certificate. While passing the Phytosanitary border control the product should be taken for the retesting, and the results should be compared with the data on the label and Certificate. The analysis of the product by the Food and Veterinary Service is conducted up to 21 days. 4. Special inspections, carried out by the Sanitary Authorities of European countries. These inspections are defined by the EU Legislation, and establish the maximum level of the presence of certain contaminants for food, listed in Table 9: Table 9. Acceptable levels of Pollutants in Fruit and Vegetable Products: Pollutant Product Saltpeter lettuce, spinach, baby food Mycotoxins peanuts, nuts, dried fruit, fruit juices, spices, apple products, dietary and baby food - aflatoxin dried fruits - ochratoxin dried grapes, grape juice Uzbekistan to Latvia and the European Union countries.22

24 - patulin fruit juices, apple products Heavy metals fruit and vegetables - lead vegetables, fruit and berries, fruit juices - cadmium vegetables - tin canned beverages, including fruit and vegetable juices For conducting these inspections, the Phytosanitary Service usually takes samples, which will not be returned after the checking procedures. Volume of samples can be significant - up to kg. The samples usually are taken from different packages (bags). In the case if, a track has the goods from different parties (by the date of manufacture and labeling), the samples will be taken from each batch. 5. Verification of conformity of labeling. All foods that are imported in the European Union market must comply with the EU labeling requirements. The consumers must get all the information necessary to make a conscious choice when buying food. Food labels must comply with the rules adopted by Directive 2000/13/EC. According to this Directive, the labels should contain the following information: The name of product. Trademark or brand name can be used, but labels should contain the common name of the product. List of ingredients labeled with the word "ingredients", must show all ingredients (including additives) in descending order of weight and designated by their specific name. Net quantity of pre-packaged food must be stated in metric units - (kilograms, grams) for the solid goods. Shelf life of the product should be fix in the format of day, month and year of producing, and the phrase "up to the expiry date" or "use by" for perishable products. Special conditions of storage or use. Name or business name and address of the producer, packer or Importer that registered in the EU. Place of origin (production of the Goods) Labeling of the batch (series, lots) for pre-packaged food. The letter «L» should precede labeling. These data should be indicated on the packaging or on a label attached to the prepackaged foods. When importing products in the EU, the labeling should be in English language (in addition to any other language). The final form of labeling is recommended to be agreed with the Importer prior to delivery. 6. Visual inspection of the Goods at the border. Inspector of the Phytosanitary Service conducts a visual inspection of the cargo, evaluation of the appearance of the product, smell, cleanliness, presence of mold and insects. In case of suspicion for quality, the Phytosanitary Service contacts the Importer and informs him about suspicions. Presence of mold or insects can lead to prohibition on the import or sale of products within the EU. 7. Control of packing and wrapping materials. Uzbekistan to Latvia and the European Union countries.23

25 The product can be packed in cardboard boxes or bags, which are not subject to special requirements. However, the goods imported to EU on wooden pallets, must be comply with Phytosanitary requirements for the pallets. The pallets should pass a special treatment for insect and pest control and have a stamp as indicated in the photo 1: Photo 1. Stamp with Phytosanitary Control sign In the case of absence of pest control stamp (sign), the Customs Authorities may issue an order to destruct the wooden pallets or wooden containers. Based on this customs order, import of products can be allowed, but the Importer will be required to submit an official document confirming the destruction of packing materials. 8. The correctness of the price of goods in the Invoice. The most of Customs duties and VAT are calculated as a percentage of the cost of imported goods. The calculation of customs cost of goods in the EU of the goods is based on the commercial cost of the goods at the moment of crossing border in the EU including the total purchase price and shipping costs to the point of importation of the goods into the Customs territory. This check value of the goods is obligatory to determine the correctness of price indicated in invoice, the correctness of prices for quality, size and so on. The Phytosanitary Service has the Registration list that identifies the standard prices for the identical goods. This is necessary to identify cases of deliberate understatement of invoice value of the goods in order to reduce tax duties on import. In case of suspicion that the goods are imported at a price lower than the "accepted" for this type of product, the inspector of Phytosanitary Service contacts the Importer and could require to make payment of import duties not in accordance with the Invoice, but in accordance with the prices listed in the Registration list or based on the cost of latest invoice with higher prices on the same goods that were exported in EU It is important to note that the key role to successful completion of Phytosanitary Control at the border is the reputation of the Importer and the Producer. In the case if the Importer had the problems with quality of products or violation of permissible content of chemical elements during the previous deliveries, in the future each consignment of the Importer will be thoroughly checked before the Customs Authorities are convinced that the problem does not repeat. Such kind of inspections could continue until the 1 year. In the EU, there is a system of information exchange. Every problem found when importing of products is registered in the database. Thus, in case of permanent deliveries, if the goods are imported into the EC through the border of other EU country, the entire history of the producer and supply of products to the EU will be available for all inspection bodies on all EU countries borders. Uzbekistan to Latvia and the European Union countries.24

26 RESPONSIBILITY OF THE PRODUCER Compliance with the Rules of food safety is a basic principle of doing business with the EU countries. The businesses should monitor all changes and additions related to the EU legislation, as the EU legislation on import and export issues could change frequently and become more stringent. Already, in the countries of northern Europe, there are more stringent requirements on some standard indicators than in other EU countries. The strict compliance with the criteria for the maximum levels of pesticides (MRLs -maximum residue levels) and microbiological indicators is a prerequisite for food imports into the EU. The competent authority of the exporting country must provide guarantee of compliance with EU requirements of the products. One of the important contributing factors for successful export of products to the EU and increasing the credence in the quality of products is the existence of the GLOBALGAP 7 Certificate at the facilities. GLOBALGAP is a system of standards to ensure the safety of agricultural products. Certification in accordance with this standard is voluntary, but its main difference from the national standards is that safety assessment covers the entire production cycle, and not only the quality of the final product. GLOBALGAP Standard include stringent requirements for production cycle, which eliminate harmful to humans in chemicals the final product. Thus, the companies that implemented the GlobalGAPstandart produce food, trustworthy of inspection and secure for the ultimate buyer. GLOBALGAP is based on the standards system HACCP (Hazard Analysis and Critical Control Points). This system is a highly effective method of ensuring the safety of products.. Joint HACCP and GAP standards gives very effective system of identification of critical processes that affected the safety of food, and reduce the risks. One of the basic principles of HACCP is the control at all stages of food production, and reduce possible dangerous situation. The main guidance document on the implementation of procedures based on the principles of HACCP is posted on the website The implementations of HACCP system at the facilities allow to producer successfully start the process of negotiations with European importers. Preparation of the supporting documents is the responsibility of the producer. The Importer defines the list of all necessary documents. Submission of the documents before loading of the goods to the Importer will make easier crossing border and passing the customs and health inspections greatly reduces the risks of revealing discrepancy between the documents and regulatory requirements. Very important issue is the monitoring (traceability) of forwarding of goods to EU countries. Each importer of food products in the European Union must provide the tracking along the supply chain of goods from the producer to the buyer (tracking and 7 Global G.A.P. (G.A.P. (G.A.P. - Good Agricultural Practice) - a program that was offered by retailers in Europe with the aim of ensuring safe food and ornamental plants. The main objective of the program was to provide the customers with quality products, which are not harmful to health and the environment. Uzbekistan to Latvia and the European Union countries.25

27 tracing). Each exporter of food products should be aware with the all tracking of the goods (this is a so-called principle of "one step back - one step forward"). The importer should also know all the process of producing, processing, and transportation of goods and so on. The key of business success is the constant exchange of information between the Producer and the Importer. RESPONSIBILITY OF THE CONSIGNOR The Producer is the only consigner of the goods and it is responsible for the preparation of cargo for shipment and loading into the tracks. This is very important step in supply chain. The successful delivery and integrity of the cargo depends to the consigner of goods. Here are the main steps that the consigner should take the actions to meet all requirements of EU Importer. Right packaging. The main purpose of packaging is to prevent friction and collision of the fruit, since these processes can further negatively affect the quality of the product. There are two types of packing of fruit, vegetables and plants: the outer packaging and the inner package in which the products are sale in the markets Outer packaging is primarily used for transportation. Packaging must protect the products from rough handling, and at the same time, it should match the height of installation up to 2, 5 m. Such kind of package must not be destroyed by the moisture, which often happens during the transportation. The outer package should be with vent hole to allow air to circulate in the inner package and it should be required temperature for this product. Vents usually puncture the sides of the box, but since the air gets from the outside, it is more effective if the vent holes will be made above and below for air circulation. The prescription of the product usually is fixed on the outer package for retail s information. Usually the outer (external) packaging is made from cardboard with different types of covering that helps to resist high humidity; bags and boxes are made of wood, fiberboard, plastics and other materials. The choosing of product packing should be based on the individual requirements of the product. There are no any special international standards for product packing. However, the materials that are used for packing must meet national standards adopted for hygiene and non-toxicity. There is a wide range of materials and forms of packaging. The most common are: cardboard boxes of food cardboard ( kg weight) poly bagging (for the EU - clear or blue) or specialized paper (some species are transported in filings ) Examples of right packaging are shown on photos 2 and 3. Uzbekistan to Latvia and the European Union countries.26

28 Photo 2. Proper packing of melons. Photo 3. Proper packing of dried apricots. Right loading of goods for goods safety Ventilation is one of the major factors affecting the safety of the cargo during transportation. Ventilation during the transportation may be internal through cold air setting provisional desired temperature or by a flow of fresh air. Fresh air is required to displace the carbon dioxide and ethylene, which are produced during respiration of products and can lead to oxygen deficiency in the track. Here are the basic rules that will help to ensure the proper ventilation and safety of the cargo during transportation: The packing and wrapping materials should be loading at least cm to the ceiling of the track The space between the boxes should be 3-5 cm between rows For keeping a certain temperature in the cargo cabin, the air should also circulate undersize of the boxes It is necessary to install cardboard corners and winding of pallet to provide additional stableness and to reduce the risk of blockage during the transportation When loading goods without pallets, the cardboard sheets must be put on the floor of track The photos 4 and 5 show what happens with a load that has not been sufficiently strengthened in the track. Uzbekistan to Latvia and the European Union countries.27

29 Photo 4. Improper loading of the track Photo 5. Incorrect strengthening of the goods Transportation conditions (temperature and humidity) It is necessary to know that different groups of products require different temperature conditions and specific conditions during transportation. Sometimes its need to store several types of fruit or vegetables in the same container, even if they have different requirements for temperature and humidity. For short periods of transportation, this does not play a significant role. However, during the long periods of transportation some serious problems could appear in the process of transportation of mixed cargo, not only due to the fact that the temperature is incorrectly exposed or the relative humidity level, but due to the formation of undesirable taste and smell of fruit and vegetables. This generates a significant amount of unwanted hormones during ripening and production of ethylene. Here are some recommendations for long-term transportation of miscellaneous goods. It is also important to take in consideration the ethylene compatibility of cargo. Many agriproducts actively emit ethylene. Some of them emit a lot of ethylene, other products emit less. Some crops susceptible to its influence more than the others do. It is necessary to take into account the reaction of neighboring products at the expense of additional processing of chemicals and prevent them from mixing. Table 10 below shows different products divided into groups based on necessary temperature of carriage, moisture and level of ethylene. Such information should be considered when a miscellaneous goods are loaded. Uzbekistan to Latvia and the European Union countries.28

30 Table 10. Groups of goods with equal terms of temperature of carriage, humidity and ethylene content. Group number, Vegetables, Fruits and Comments temperature, humidity Berries, admitted to a short joint storage and transportation Group No. 1 tº C: from 0 to +2 Humidity: % Apricots Mushrooms Oranges Coconuts Grapes Kohlrabi Cherry Leek Grenades Pasternak Grapefruit Radishes Turnips Pears Nectarines Beets Peaches Plums, Plums, Persimmon Apples Fruit of this group produce ethylene. Citrus fruit in this group exposed to benefil (dephenyl) can give their smell to other products Group No. 2 tº C: from 0 to +2 Humidity: % Kiwi Artichokes Broccoli Green pea Cabbage, Corn Green onions, Carrots Parsley Rhubarb Lettuce Celery, Asparagus Cauliflower Spinach, Endive The fruit of this group are sensitive to ethylene. For fruit and vegetables of this group, the method of cooling the surface of fruit with ice could be used. Group No. 3 tº C: from 0 to +2 Humidity: 65-75% Onions Garlic Moisture harms fruit of this group. Group No. 4 tº C: +4,5 Moister: 90-95% Cranberry Cantaloupe Lemons Tangerines Citrus fruit in this group exposed to Benefit (dephenyl) can give scent to other products For fruit and vegetables of this group, the method of cooling the surface of fruit with ice could be used. Group No. 5 tº C: +10 Moister: 85-90% Eggplant Late potato Cucumbers, Sweet pepper Fruit of this group are sensitive to ethylene and can be damaged by cold. Group No. 6 tº C: Moister: 85-90% Avocado Ginger Pineapple Squash Bananas Early potatoes Melons Ripe tomatoes Pumpkin Mango Lime Fruit of this group elaborate ethylene and are sensitive to cold. Group No. 7 tº C: Moister: 85-90% Watermelons Tomatoes Yam Needs to keep away from pears and tomatoes (due the sensitivity to ethylene) Uzbekistan to Latvia and the European Union countries.29

31 The Annex 2 of this document also contains a table with the permissible temperatures during transportation of fruit by road according to the International Institute of Refrigeration, Paris. It will be better to set the temperature for 2-4 hours to a few degrees above or below the recommended, after closing the door of the trailer. This allows setting the temperature of storage and minimizing the l damage to cold or heat on the most sensitive fruit and vegetables. In addition, it is needed to ensure averaged indicators on the hygrometer (humidity meter) as moisture is the second most important factors affecting the safety of fruits and vegetables. Obtain averaged readings of the hygrometer (humidity meter), since moisture is the second most important factors affecting the safety of fruit and vegetables. The consignor is also responsible for specifying the right conditions of carriage including the temperature and humidity regimes in the transport document CMR. Registration of transport documents The consignor must prepare a package of accompanying documents in accordance with the EU and importer s requirements. Usually the list of supporting documents includes: Invoice CMR 8 Packing list TIR Carnet (original + copy) 9 Certificate of Origin Phytosanitary Certificate (for each track) Fumigation Certificate Certificate of Quality The labeling of the goods must fully comply with the data specified in the enclosed documents. Specifying the right weight of the load is also the responsibility of the consignor. Overweight should not be exceeding 1.5-2% (500 kg). Weight of goods is checked at each border, so if the product is stacked at unequal pallets, it is the better to weigh each pallet severally. In this case, it is better to use the ship surveyor services when loading the track. Specially educated people (surveyors) eliminate the risk of losses in the process of loading the goods, their transportation and unloading at the customer's warehouse. They control all phases of tracking of goods as well as its quality and compliance with standards in shipping, freight handling and compliance with the conditions of carriage on the way. 8 CMR is the international Waybill, the document regulating contractual relationships that arise in the course of international transportation of Goods by road. 9 TIR Carnet is a customs transit document used to prove the existence of the international guarantee for duties and taxes for the goods transported under the TIR system, within the limit of the amounts specified by the contracting parties and under conditions stipulated in the TIR Convention. The main purpose of the TIR Carnet is to provide the necessary guarantees to transit States. The document guarantees payment of customs duties in respect of which there is a risk of non-payment. Uzbekistan to Latvia and the European Union countries.30

32 RESPONSIBILITIES OF THE TRANSPORT AND LOGISTICS PARTNER One of the most important factors in the successful delivery of goods from the manufacturer to the importer is to select the right transport and logistics partner. The main options for delivery conditions of products are: EXW 10 - EX WORKS, when the producer requiring the seller to deliver goods at his or her own place of business. The buyer assumes all other transportation costs and risks. FCA 11 - Free Carrier. In this case, the Buyer (Importer) also should sign a contract with a transport company, but the responsibilities for the goods should be passed to the buyer after Customs clearance on the border. Carrier indicates a route in accordance with the legislation of the transit countries and informs the partners about situation on the borders before shipment. The main responsibilities of transport and logistics partner are: 1. Customs clearance of goods - from the registration of the export declaration at the place of production/storage prior to warehouse delivery in the EU. 2. Processing of Cargo and accompanying documents for crossing border and phytosanitary inspections 3. Loading in tent trailers, and in refrigerators (if it is needed) 4. Choosing the best transportation route, taking into consideration the legislation of the transit countries and the situation on the borders 5. Consultations on selection of tracks, cargo packaging and location of goods in the track 6. Ability to work with consolidated goods 7. Control of temperature and conditions of goods in transit in accordance with conditions specified in the transport documents (CMR) 8. Assistance in issuing the Certificates of Origin - document confirming the country of origin of goods 9. Solving issues related to transit of goods Responsibility of driver The driver is responsible for: The cleanness of the track, including disinfection before loading. Checking the number of pallets Compliance with conditions of carriage fixed/ set out in the CMR 10 EXW -A trade term requiring the seller to deliver goods at his or her own place of business. All other transportation costs and risks are assumed by the buyer. 11 FCA -Free Carrier means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller's premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading. Uzbekistan to Latvia and the European Union countries.31

33 Compliance with the weight specified by consignor in the technical transport capacity documents. Right allocation of cargo in the car (axle load) Features of the rail way transportation The railway transport is not very popular at the delivery of agricultural products to the European countries due: 1. The spoilage of goods in transit due to the absence of temperature preparation of cargo for shipment 2. Long delays on the railway 3. High cost of labor for loading of the goods into wagons 4. Inefficient organization of the transport of fruit and vegetables from farms to loading station. 5. Dependence on train schedules. The need for reloading. 6. Dependence on other Customers: 2 containers are loaded on the Rail Road platform. Mainly car transport is used on the route Tashkent, Uzbekistan - EU countries (in particular - Tashkent Riga, Latvia). RESPONSIBILITY OF THE IMPORTER The importer must be officially registered in one of the EU countries. The Importer, as any food producer, must ensure that the product meets the requirements of Food Law at all stages of production, processing and distribution, and is to be able to confirm these requirements for the product and control the product quality. The main responsibilities of importer of agriculture products are: The storage of the goods at specially equipped warehouses and must meet the regulatory requirements on agriculture products of the Republic of Latvia and the EU. The goods should be located in a special area with controlled humidity and temperature; The storage area must be equipped with refrigerators and should be operated by professionals and responsible employees; The best option for agriculture and food storage is the warehouses of class "A+". This is the highest category of warehouses according to the general classification. In the warehouses of class "A+" the temperature control is regulated depending on the storage requirements of a consignment and air conditioning; In accordance with the requirements of the European Union all the products must be stored on wooden pallets; Delivery of the goods to the retail chain should be made in compliance with the terms of delivery In case of uprising the problems with quality of the goods, inadequacy of chemical elements in accordance with the EU norms, etc., the Inspection Authorities will pursue a claim to the Importer. Even in the case of successful completion of all inspections on the border, the importer will be responsible also for quality of the goods until the product will Uzbekistan to Latvia and the European Union countries.32

34 be sold. Therefore, testing the quality of the product reduce the risks for Importer to sell poor quality goods. This explains why the EU importers in their contracts usually specify more stringent criteria for chemical parameters than that is required in the official EU directives or add additional conditions for which there are no any official restrictions. For example, an important parameter for buyer of dried fruit is the humidity, although this measure is not regulated by the EU standards: The norms of humidity established by the importers: In French plum maximum 32%, minimum 28% of humidity. In dried apricots maximum 28%, minimum 20% of humidity. In raisins maximum 17%, minimum 14% of humidity. Microbiological standards of dried fruit: Yeast: max 1 000/g E. Coli: 0 Mould: max 1 000/g Heavy metals Mercury, Hg max 0.5 mg/kg Cadmium, Cd max 0.5 mg/kg Lead, Pb max 0.5 mg/kg Arsenic, As max 0.5 mg/kg Copper, Cu max 0.5 mg/kg The sample of Certificate for chemical and microbiological analysis is provided in Annex 3 of this document. All requirements of the importer should be specified in the contract. In the case if the tests show incorrect parameter, as specified in the contract, the Importer, as a rule, has the right to refuse the goods or require revision of price as there is a risk of lack of conformity of the goods to the declared quality. An additional requirement of the importer it may be the requirement on fumigation. Fumigation is the processing of the product with gas to fight the insects. Gas and its dose must comply with the EU requirements and standards. If the producer and importer agree, the importer can do the fumigation of the products at the place of acceptation of goods. After fumigation of the product, the responsible agency issued the Fumigation Certificate, which indicates the gas and the dose used for this procedure. Sample of the Fumigation Certificate please see in Annex 4 of this report. One of the most important parameters that determine quality of goods and affect their price is the shelf life. For dried fruit and nuts, the importers require a product with a shelf life of at least 1 year. The product size is also a key indicator, which is specified in the contract, accompanying documents and labeling. Product size is usually determined by the amount of product (in volume) per unit weight. In the case of discrepancy of the products size with documents and label, the importer can request to reduce the price or even refuse to pay. Uzbekistan to Latvia and the European Union countries.33

35 Importer requires the producer to provide the product samples for monitoring of the quality of the production on above-mentioned parameters. If the samples meet the requirements and expectations, the Importer signs a contract in accordance with provided samples. The samples usually are sent to importer by producer in packaged bags valued grams. The producer sends it by courier service or by post, and as a rule do not pass any special inspections at customs offices, but could be checked in weight and make visual inspection. The official dispatch of the samples should be accomplished with Invoice and labeled as a Sample. The Importer stores the samples until the company receives the main product. Usually, the Importer requires from producer to send 2 samples. One sample is for laboratory analysis and it will be compared with the received goods. The second sample is needed in the case of non-compliance with the contract and the producer does not agree with the test results. The producer is also should keep samples from each batch that are sent, for solving possible disputes. Rights of the Importer in case of problems identification of goods In the case of irregularities during import of the goods into the EU, the Food and Veterinary Service may decide to prohibit or limit the supplying of the product. The Importer has the right to prohibit import into the EU. In this case, the Importer may refuse to accept the goods, i.e. to return the goods or to make destruction of the goods. Prohibit for customs clearance in the EU. In this case, the Importer may refuse to accept the goods, i.e. to return the goods or to make re-export of the goods outside of the EU in the third countries and producer will pay for this. Prohibit selling it as a food product. In this case the Importer may return the goods and the producer will pay all the expenses, to destroy it or send for animal feed (in case of presence of an appropriate Certificate). To issue a certificate on destruction of the packaging (in the case of absence of Phytosanitary Certificate). The Importer is obliged to destroy the packaging and to present the relevant document. In the case of inconsistency of the product with samples, the producer will pay all expenses for returning the goods or destruction or re-pricing. At discrepancy with dimensions of the goods, their marking and particulars of the contract, the Importer usually requires a re-pricing of the product. The key questions related to import requirements and the new rules of food hygiene and official controls of supply are descried at http: //ec.europa.eu/food/food/controls/index_en.htm The EU legislation on sanitary control of food of non-animal origin is on the website: heanahc_legislation.pdf MAIN PROBLEMS OF EXPORT OF GOODS TO THE EU AND THEIR SOLUTIONS Uzbekistan to Latvia and the European Union countries.34

36 Below is a summary table of the main problems faced by the Importers of agricultural products and ways of solving them. Problem Solution Errors in documents Quality of Goods (contaminants, hair, stones, etc.) Preliminary sending to importer for checking Compliance and control with HACCP requirements at the facilities Quality of the Goods (fungus, mold) Compliance and control with HACCP requirements at the facilities Conditions of storage and transportation. Quality of the Goods - presence of insects Compliance and control with HACCP requirements at the facilities Fumigation. Noncompliance with required size on marking Compliance and control with HACCP requirements at the facilities Inconsistency with the product samples Preliminary checks before shipment. Documentary confirmation Errors in labeling Damage of products during transportation Preliminary approval of labeling of samples. Photographs Coordination with buyer the form of packaging. Control at loading. To make the pictures by camera CONCLUSION The market of agricultural products of the European Union (EU) is constantly growing. The products of Uzbek producers can take on the European market in the case if they comply with the rules of EU food law and to ensure the necessary quality of goods. Contracts with European importers could be long-term and provide stable incomes for producers and importers. Investments in the production of agriculture products can significantly improve product quality and allow importers to sign long-term contracts with European retails. High product quality is the base of successful trade with EU countries. Annex 1 Uzbekistan to Latvia and the European Union countries.35

37 SOURCES OF INFORMATION The key questions related to import requirements and the new rules of food hygiene and official control of supply are descried at: EU legislation in the field of inspection of foodstuffs of non-animal origin: heanahc_legislation.pdf The key questions related to import requirements and the new rules of food hygiene and official control of supply are descried at: The guidance document on the implementation of certain provisions of Regulation (EC) 852/2004 of the European Parliament and the Council on the Hygiene of Foodstuffs: The guidance document on the implementation of procedures based on the principles of HACCP, as well as in promoting of implementation of the HACCP principles in certain food industry: en.pdf Questions and Answers on Residues of contaminants in foodstaff: Introduction to EU Legislation on Pesticide Residues: Questions and Answers on the regulation of GMOs in the EU: Questions and Answers on the EU Legislation for materials in contact with food: Microbiological criteria: Contaminants in foodstaffs: Pesticide residues: ec.europa.eu/food/plant/protection/resources/publications_en.htm Database of maximum permissible level of pesticides: ec.europa.eu/food/plant/protection/pesticides/database_pesticide_en.htm Portal of Rapid Alert System for Food and Feed (RASFF) - the database for on-line search: Annex 2 Sample of chemical and microbiological analysis certificate Uzbekistan to Latvia and the European Union countries.36

38 Annex 3 Uzbekistan to Latvia and the European Union countries.37

39 Annex 4 Uzbekistan to Latvia and the European Union countries.38

40 FUMIGATION CERTIFICATE Uzbekistan to Latvia and the European Union countries.39