Export Certification and Role of Equivalence Agreements in Food Sector

1. Export Certification and Role of Equivalence Agreements in Food Sector By R BALAKRISHNANJoint Director, EIC

2. WTO SCENARIO • Establishment of WTO - Dismantling of barriers for free flow of trade • Creation of global market with equal access to all countries • Quality & safety important • Environmental Issues gaining importance • Role of standards & CA procedures • Necessary to lay down rules and disciplines. • Non-tariff agreements – SPS & TBT

3. SPS AGREMENT • Allows countries to set their own standards for health and safety • Scientific basis, apply to extent necessary, MFN treatment, National treatment principle • Harmonization (Codex) • Higher standards based on risk assessment • Transparency • Equivalence • Allows countries to use different standards & different inspection methods

4. TBT AGREEMENT • Country has right to adopt voluntary standards & technical regulations • Code of good practice for standards devt • Encourages adoption of international stds • Recognition of each others testing & CA procedures • Acceptance of inspection & tests of CA based on equivalence

5. SAFETY MANAGEMENT SYSTEMS APPROACH • Shift from CWI to Systems Approach-HACCP/9000 • Conrol systems which focus on preventive measures instead of relying on end-product testing for health & safety or quality aspects • Some countries stressing on infrastructural aspects eg milking machines, flake ice machines; primary production etc • Concept of equivalence needs to be recognised

6. CONCEPT OF EQUIVALENCE IN THE SPS AGREEMENT (Article 4) “Members shall accept the SPS measure of other members as Equivalent, even if these measures differ from their own or those used by other members trading in the same prod, if the exporting member objectively demonstrates to the importing member that its measures achieve the importing member’s appropriate level of sanitary or Phyto-Sanitary protection” Members shall upon request, enter into consultation with the aim of achieving bilateral or multilateral agreements or recognition of the equivalence of specified SPS measures.

7. EQUIVALENCE AGREEMENTS • Purpose • Conformance to import requirements • Avoid duplication – use collective resources more effectively & efficiently • Provide mechanism for cooperative exchange of expertise, assistance & information to meet requirements • Cover - exchange of information on standards, recognition of certification, provision for retest and appeal, return of rejected consignments • Problems- need: admin burden – control - income - important components not addressed - (SLSI, Canada, USA)

8. EXPORT QUALITY CONTROL – A BACKGROUND • Export (QC&I) Act, 1963 – umbrella Act governing quality of exports • EIC set up to advise Government on measures for sound development of exports through QC & I to include notification of standards & certification systems • Powers of Central Government under the Act • Notify commodities for compulsory PSI • Specify standards for export and type of QC & I • Establish or recognise Agencies for QC & I • Nearly 1000 commodities notified

9. EIC STRUCTURE • Apex Body – Council, Chairman, 18 members, Member Secretary- Director, EIC • Specialist Committees • EIC – The Organization • CEO Director, office at Delhi • Powers of ‘Head of Department’ • Administering export certification • Administrative & technical control of EIC & EIAs • Machinery for Export Certification – 5 EIAs at Mumbai, Kochi, Kolkata, Delhi and Chennai, under administrative & technical control of EIC • 41 Sub-offices & labs • Manpower - SS 804; ES 917; vacancies around 70 • Financially self supporting

10. EIC-ROLE IN WTO REGIME • Regulatory role to • address health & safety concerns of importing countries • compulsory certification for Marine products, Egg products, Milk products, Honey products, Poultry Meat products etc. • Voluntary export certification – Tea, F&V, Spices, Basmati Rice • Equivalence Agreements/MOUs with trading partners for recognition of EIC’s certification • Certificate of Health (Food items), Authenticity (Basmati Rice-EC) • Laboratory Testing • Support for Export Inspection & Certification • Commercial testing (facilities extended to industry) • Import testing of food items-EIA Labs identified by MoH&FW

11. INTERNATIONAL RECOGNITIONS • EC - Designated CA for marine products and issuance of authenticity certificate for basmati rice; dialogue on for dairy products, egg products, poultry meat & honey • USA (USFDA) - recognized for Black Pepper – no detention if accompanied by EIC certificate; initiated dialogue for other foods • Australia (AQIS) - recognized in December 2002 for marine products – maximum 5% consignments to be subjected to random verification- seeking for dairy products, spices etc. • Sri Lanka (SLSI) - recognized for 85 products regulated by Sri Lanka (food, cement, engineering items, electrical appliances etc. – Agreement signed in Dec’ 2002 – Assessment by SLSI team in April 2003 – level of inspection reduced to 25% in 1st year • Singapore– negotiating MRAs in area of food & agri, electrical & electronics, drugs, telecommunication • Others - EU countries, S.Korea, Libya, Japan, Canada, Argentina

12. SYSTEMS OF INSPECTION & CERTIFICATION • Consignmentwise inspection • Systems Approach • In-Process Quality Control • Self-Certification • Approval and monitoring of processing and manufacturing units based on food safety management systems such as GMP/ GHP / HACCP.

13. PRODUCTS COVERED UNDER EXPORT CERTIFICATION • Nearly 1000 commodities notified in all sectors (Food, footwear, chemicals, engineering, leather, jute etc.) • Under Mandatory Certification • Fish & Fishery Products • Dairy Products • Egg Products • Poultry Meat & Poultry Meat Products • Honey • Raw Meat (Frozen/chilled), Processed Meat

14. PRODUCTS COVERED UNDER EXPORT CERTIFICATION (Contd.) • Under Voluntary Certification • Covers any food item, primary or processed including snack/ready-to-eat food products. • Envisages both Consignment-wise and in-process approval system certification. • Certificate of Inspection/Health Certificate can be issued as per requirement. • Basis of certification: Buyer’s/ Importing Country’s/ Codex/ ISO/ Any International Requirements. • Details available on website: http://www.eicindia.org

15. CERTIFICATION BASED ON FOOD SAFETY MGMT SYSTEMS APPROACH • Food items covered include marine products, milk products, egg products, poultry products, honey. • Requirements for approval of processing plants. • - GMP/GHP/HACCP • - Minimum test facilities • - Waste disposal/Effluent treatment mechanism • - Record keeping mechanism • - Competence of technical manpower • - Conformance of products to standards

16. 3-TIER SURVEILLANCE SYSTEM MONITORING BY EIA OFFICIALS TO VERIFY Sanitation & Hygiene Process controls Implementation of HACCP plan Records Observe testing by laboratories Draw samples of raw materials, water , ice, finished products, swabs of workers hands and work places SUPERVISORY VISITS TO CHECK Compliance to norms by processors Quality and correctness of monitoring by EIA officers. CORPORATE AUDITS Independent audit by EIC to verify operation of scheme by EIAs as per documented systems.

17. CONCERNS RELATED TO EXPORTS • Exports continuing without approvals-honey, egg • Residue control important – RMP, coordination b/w various organizations, prohibiting use of certain antibiotics in livestock products • In case of systems approach, processing to be only in ‘Approved Units’ • Deficiencies observed relate to HACCP implementation etc • Not a one-time approval–maintaining system imp • Raw material control & traceability lacking • Tampering with certificates

18. Thank you