MARKET ACCESS GUIDELINES: EUROPEAN UNION FRUITS & VEGETABLES SECTOR

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1 MARKET ACCESS GUIDELINES: EUROPEAN UNION FRUITS & VEGETABLES SECTOR Prepared by: Exprt Develpment Bard (EDB), Sri Lanka May, 2012

2 CONTENTS 1. ABOUT MARKET ACCESS NON TARIFF BARRIERS TARIFF BARRIERS... 6 Market Access Guidelines Fruits & Vegetable Sectr 1

3 1. ABOUT MARKET ACCESS EU market access requirements are an imprtant part f internatinal trade; cmpliance is a prerequisite n the EU markets. Market Access Requirements that are established by EU r natinal legislatin frm the minimum requirements with which prducts (r services) have t cmply, will they be allwed entry n the EU market. Prducts that d nt cmply will nt be allwed. EU buyers will therefre require exprters t at least cmply with the requirements laid dwn in EU legislatin and, if applicable, with the additinal natinal legislatin f EU Member States and Nrway. 2. NON TARIFF BARRIERS a. CONSUMER HEALTH AND SAFETY MANAGEMENT If yu want t exprt fd prducts t the EU, yu have t take int accunt that abve all, yur prducts meet safety requirements that are equivalent t thse in the EU. Fd safety implies that all ptential bilgical, chemical r physical hazards are prevented, eliminated r brught dwn t a safety level which is acceptable in the EU. T reach the acceptable fd safety level, all fd prcessrs, packagers and distributrs, whse fd eventually is intended fr the EU market, must use apprpriate hygiene practices. Quality Standards If yu exprt fresh fruit and vegetables t the EU yu have t make sure yur prducts cmply with the fllwing requirements: Health cntrl (fd law, hygiene, micrbilgical criteria, cntaminants, pesticides); Plant health (phytsanitary) cntrl (harmful rganisms); Marketing standards (general r specific); Other requirements (fd additives, fd cntact materials, fd irradiatin, nvel fds, radiactivity, quick frzen fds, GMO s, labelling and rganic prducts). Regulatin (EC) 1234/2007 in cnjunctin with Regulatin (EC) 1580/2007 prvide the marketing standards fr all fresh, unprcessed fruit and vegetables. HACCP and ISO Regulatin (EC) 852/2004 defines the hygiene prcedures fr fd at all stages f the prductin prcess frm primary prductin t sale t the EU. The Regulatin bligates fd business peratrs active in the EU t base their hygienic prcedures n the HACCP methdlgy. HACCP stands fr Hazard Analysis Critical Cntrl Pint. It is a methdlgy, based n seven principles, which fd prcessrs, packagers and distributrs1 must use t identify the ptential hazards that can be intrduced while the fd is under their care. Furthermre, it determines hw thse hazards can be prevented, eliminated r brught dwn t EU acceptable safety levels. Gvernmental agencies respnsible fr fd safety in the EU ( fd safety authrities ) cntrl if the afrementined fd business peratrs indeed practice the hygienic prcedures as described in the Regulatin. Fd Cntaminants Fd safety is an imprtant issue in EU fd plicy and legislatin has been established in rder t guarantee fd safety. Within this framewrk, the EU has set maximum levels fr selected cntaminants when they are present in specified prducts r prduct grups. The legislatin is Market Access Guidelines Fruits & Vegetable Sectr 2

4 regularly amended t include mre prducts and cntaminants r adjust threshld limits per cntaminant. The legislatin n cntaminants in fd includes different requirements fr varius types f fd prducts. Please nte that the legislatin cncerning cntaminants in fd in different t the ne cncerning maximum cntent f residues pesticides (MRLs) in fdstuffs. The MRLs legislatin is laid dwn in Regulatin (EC) N 396/2005. Maximum Residue level All fdstuffs intended fr cnsumptin in the EU are subject t MRLs. Prducts cntaining mre pesticides than allwed will be withdrawn frm the EU market. Regulatin (EC) 396/2005 n maximum residue levels f pesticides in r n fd. Directive 91/414/EEC n the placing f plant prtectin prducts n the market. Directive 79/117/EEC prhibiting the placing n the market and use f plant prtectin prducts cntaining certain active substances. The first is directly relevant t exprters frm utside the EU, since it sets limits fr the amunt f pesticide left n fd, when placed n the EU market. The latter tw are indirectly relevant, because they regulate the authrizatin f pesticides within the EU. This can be relevant fr exprters since the decisin whether a pesticide is allwed in the EU will have cnsequences fr the MRL set fr that specific substance. The MRL fr prhibited substances is always the lwest amunt which is technically detectable. b. REQUIRED DOCUMENTS If yu exprt fruit and vegetables frm a nn-eu (third) cuntry t the EU yu have t be able t shw that yur prducts are cnfrm the marketing standards. Which dcuments are required depend if an SMS r the GMS is applicable and whether the EU Member State has set any additinal requirements. Demnstratin f cnfrmity can be dne by tw means: Certificate f Cnfrmity (CC) A dcument certified by a cmpetent authrity indicating that the cnsignment meets the quality and labelling standards set by a marketing standard. It is usually the EU imprter arranging a CC with the authrities f the imprting EU Member State. Accmpanying dcuments Invices r ther (nn-specified) dcuments indicating the name and the cuntry f rigin and where apprpriate the class, the variety r the fact that the dcuments are intended fr prcessing (Certificate f Industrial Use). c. PACKAGING AND PACKAGING WASTE If yu want t exprt t the EU, yu have t make sure that the packaging yu use fr yur prducts meet all EU requirements. These requirements aim t prevent the prductin f packaging waste, t prmte the reuse f packaging (recycling r ther frms f recvering packaging waste) and as such t reduce the final dispsal f such waste. The requirements mainly relate t maximum cncentratin levels fr heavy metals cntained in packaging and t labeling (marking and identificatin f the materials used). Annex I t Directive 94/62/EC lists sme illustrative examples f packaging. Directive 94/62/EC refers t Directive 2006/12/EC fr the definitin f waste : Any substance r bject which the hlder dispses r at sme pint will r has t dispse. Examples are: cntaminated r siled materials, materials whse date fr apprpriate use has expired, spilled, r misshaped materials, adulterated Market Access Guidelines Fruits & Vegetable Sectr 3

5 materials. Als are included materials f which the use has been banned by the EU Annex I f Directive 2006/12/EC. d. LABELING All labeling infrmatin must be clear and legible n ne side f the package, either: indelibly printed directly nt the package, r n a label which an integral part f the package r affixed t it. All prducts must cntain the fllwing labeling infrmatin: Yur cuntry s name must be indicated. Fr prducts riginating in mre than ne cuntry, the full names f all cuntries n the package may be replaced with mix f nn-eu fruit and vegetables. Fr pre-packaged prducts the net weight must be indicated. Unless, the prducts are sld per unit and the number f the packaged prducts is clearly visible. Fr prducts shipped in bulk, the labeling infrmatin (name f the prduct and the cuntry rigin) must appear in the accmpanying dcuments (invices and ther dcuments) r n a ntice placed in an bvius psitin. These requirements apply in additin t the general labeling requirements applicable t all fd prducts brught n the EU market, except when there are dergatins. Fr fruit and vegetables the requirements regarding the listing f ingredients and the durability d nt apply. Labeling shuld be appeared at least in 2 languages such as English and the language used in the particular cuntry f imprting. e. GLOBALGAP GlbalGAP is a private sectr initiative that sets vluntary standards fr the certificatin f agricultural prducts arund the wrld. It is a pre-farm-gate standard, which means that the certificate cvers the prcess f the certified prduct in all the farming activities until the prduct leaves the farm. It is a business-t-business label, s nt directly visible t cnsumers. Certificatin is carried ut by independent and accredited certificatin bdies in mre than 100 cuntries. Prducers are inspected during annunced and unannunced inspectins. Natinal r reginal farm assurance schemes that have successfully cmpleted their benchmarking prcess are recgnized as an equivalent t GlbalGAP and therefre d nt need separate certificatin. f. SOCIAL ACCOUNTABILITY AND FAIR TRADE MANAGEMENT SA8000 The mst widely implemented glbal standard fr managing wrking cnditins is SA8000, develped by Scial Accuntability Internatinal (SAI). It is the first auditable standard, suitable fr cmpanies f all sizes and sectrs anywhere in the wrld, and prvides a framewrk fr assuring that scial accuntability r minimum standards fr wrking cnditins are being ensured. Althugh any cmpany that perates a prductin facility can apply fr SA8000 certificatin, SA8000 is mainly used by Western cmpanies surcing frm develping cuntries, having their supply chain certified n scial standards. SA8000 cvers the fllwing 9 areas f accuntability: Child labr: N wrkers under the age f 15. Frced labr: N frced labr, including prisn r debt bndage labr; n ldging f depsits r identity papers by emplyers r utside recruiters. Market Access Guidelines Fruits & Vegetable Sectr 4

6 Wrkplace safety and health: Prvide a safe and healthy wrk envirnment; take steps t prevent injuries; regular health and safety wrker training; system t detect threats t health and safety; access t bathrms and ptable water. Freedm f Assciatin and Right t Cllective Bargaining: Respect the right t frm and jin trade unins and bargain cllectively. Discriminatin: N discriminatin based n race, caste, rigin, religin, disability, gender, sexual rientatin, unin r plitical affiliatin, r age; n sexual harassment. Discipline: N crpral punishment, mental r physical cercin r verbal abuse. Wrking hurs: Cmply with the applicable law but, in any event, n mre than 48 hurs per week with at least ne day ff fr every seven day perid; vluntary vertime paid at a premium rate and nt t exceed 12 hurs per week n a regular basis; vertime may be mandatry if part f a cllective bargaining agreement. Remuneratin: Wages paid fr a standard wrk week must meet the legal and industry standards and be sufficient t meet the basic need f wrkers and their families; n disciplinary deductins. Management system fr Human Resurces: Facilities seeking t gain and maintain certificatin must g beynd simple cmpliance t integrate the standard int their management systems and practices. g. RETAIL CHAINS REQUIREMENTS AND TRACEABILITY (BRC) If yu exprt fresh r prcessed fd t the EU, yu have t take int accunt that EU buyers will demand frm yu that yu are able t prvide them with infrmatin n the rigin and authenticity f all prducts used in the prductin f the final fd prduct. The BRC Glbal Standards are a suite f fur industry-leading Technical Standards that specify requirements t be met by an rganizatin t enable the prductin, packaging, strage and distributin f safe fd and cnsumer prducts. Certificatin t a Glbal Standard, which is achieved thrugh audit by a third party Certificatin Bdies, reassures retailers and branded manufacturers f the capability and cmpetence f the supplier, and reduces the need fr retailers and manufacturers t carry ut their wn audits, thereby reducing the administrative burden n bth the supplier and the custmer. h. ENVIRONMENTAL MANAGEMENT (ISO 9001:14000) ISO 14001:2004 gives the generic requirements fr an envirnmental management system. The underlying philsphy is that whatever the rganizatin's activity, the requirements f an effective EMS are the same. This has the effect f establishing a cmmn reference fr cmmunicating abut envirnmental management issues between rganizatins and their custmers, regulatrs, the public and ther stakehlders. ISO prvides a framewrk fr intrducing an EMS. An essential part is the aim fr cntinuus imprvement. It is a tl enabling an rganizatin f any size r type t: identify and cntrl the envirnmental impact f its activities, prducts r services, and t imprve its envirnmental perfrmance cntinually, and t implement a systematic apprach t setting envirnmental bjectives and targets, t achieving these and t demnstrating that they have been achieved. ISO can be implemented in cmbinatin with ther management systems such as ISO 9001 n quality and OHSAS n ccupatinal health and safety. ISO des nt require external certificatin, but in rder t prve cmpliance t clients it may still be needed. In this case, the ISO system has t be certified by an authrised certifying bdy. A certificate is valid fr three years. In rder t maintain the certificate, regular audits, bth internal (1-2 times per year) and external (2 times per year), are needed. Market Access Guidelines Fruits & Vegetable Sectr 5

7 Certificatin Bdies in Sri Lanka Department f Agriculture Sri Lanka Standards Institute (SLSI) Natinal Organic Certificatin Authrity (NOCA) Ministry f Health Sri Lanka Industrial Technlgy Institute (ITI) i. SPECIAL REQUIREMENTS OF BUYERS (OPTIONAL) EU buyers will request cmpliance with the EU legislatin in the first place. But, ften they will have requirements that g beynd legislatin, EU buyers may ask exprters additinal requirements regarding quality, ccupatinal health and safety, business ethics and scial respnsibility. These requirements are develped by the private sectr itself. Althugh these requirements are called vluntary (nt bliged by legislatin), cmpliance with the requirements in sme cases is as imprtant as cmpliance with legislatin, r cmpliance may give the exprter a cmpetitive advantage when marketing prducts in the EU. 3. TARIFF BARRIERS Zer tariff is applicable fr exprting Fruits & vegetables t EU. Surces: CBI Website: (EU legislatin) MRLs, pesticides GLOBALGAP: EU Exprt Helpdesk: (requirements, taxes, VAT) BRC (UK standard): SA 8000: ISO quality mgmt Int. fd quality and hygiene standards: Organic: Fair Trade: Cntact us fr registering in ur next seminar n market access darshana@edb.tradenetsl.lk Market Access Guidelines Fruits & Vegetable Sectr 6

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