EUROPEAN COUNTRIES Eid Project

8/10/2019 EUROPEAN COUNTRIES Eid Project

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EXPORTING OF SHRIMP PRODUCTS

Exporting Company : SM Exporters Pvt India Ltd

Origin : Chennai, Andhra Pradesh, India

Export countries : European Countries

(Belgium, Bulgaria. Croatia, Cyprus (the Greek

part) ,Denmark, Germany)

TYPES OF SHRIMPS EXPORTED IN FROZEN AND NON FROZEN FORMS:

1. Scampi (Macrobrach ium rosenberg i i)

2. White prawn (Penaeus indicu s)

3. Tiger prawn (Penaeus monod on)

4. Brown shrimp (Metapenaeus do bson i)

5. King prawn (Metapenaeus aff in is)

Company deals with Shrimp exports to European countries.

Supply chain of Shrimp in India

Method of Payment:

Payment done through Letter of Credit:

As L/C is issued by importers bank in favour of the exporter giving the authority to

draw bills up to a particular amount ( as per contract price ) covering specified

shipment of goods and assuring him of payment against the delivery of shipping

documents.

Payment is done after the shipment of goods within 30 days. The importer has to pay

interest charges if he is failed to pay the money on time.

FishermenCommission

Agent

Supplier

(Pre Processor)Exporter


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Payment Agreement through FOB:Under this quotation, the exporter undertakes

to pay all expenditure till the loading of goods on board the ship, including

documentation charges. The exporter is also required to clear the goods at the port

of shipment.

The following are the export documents required for the processing of the Shipping

Bill:

GR forms (in duplicate) for shipment to all the countries.

4 copies of the packing list mentioning the contents, quantity, gross and net

weight of each package.

4 copies of invoices which contains all relevant particulars like number ofpackages, quantity, total f.o.b, correct & full description of goods etc.

Contract, L/ C, Purchase Order of the overseas buyer.

AR4 (both original and duplicate) and invoice.

Inspection/ Examination Certificate.

EXPORT PROCESS FOR SEAFOODSUMMARY FLOW CHART


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Pricing of Shrimps

Types of Shrimps:


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Types of obtaining Shrimps

Distribution of Shrimps:


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PRODUCT STANDARDS

Directive 91 Annexure 493laid down the rules for product and production

standards.

The focus is on production related safety aspects of shrimp products from

developing nations to European Union.

The major issues regarding safety norms of fishery products like frozen and non-

frozen shrimps is the presence of harmful microbes and presence of chemicals in

quantity which may render the product harmful for human consumption.

1. Condi t ions c oncern ing paras ites:During production and before they are

released for human consumption, fish and fish (shrimp) products must be

subject to a visual inspection for the purpose of detecting and removing anyparasites that are visible.

2. Cond it ions con cerning freezing temperature:The frozen shrimps are to be

maintained at a temperature of not more than -200C. in all parts of the

product for not less than 24 hours. Products subjected to this freezing process

must be either raw or finished.

3. In accordance of Cou nc il Regulatio n (EEC) no 103/76(last amended in

2006) the fishery products must undergo certain critical checks. Organoleptic

contents inspection in the shrimp is thus a critical standard

4. Art ic le 15under this directive also laid down the norm forparasitic content

checksin the fishery (shrimp) product.

5. Chemical content analysisis also a necessary parameter laid down by this

directive. Wherein samples are to be tested for controlling the level of certain

chemical components like:

TVB-N (Total Volatile Basic Nitrogen) and TMA-N (Trimethylamine-Nitrogen)

Histamine : the mean value must not exceed 100 ppm

6. Art ic le 15is also concerned with the concentration of contaminants in the

waterin which the shrimps are cultured.

Imported shrimps must not contain in their edible parts contaminants present in the

aquatic environment such as heavy metals and organo-chlorinated substances at

such a level that the calculated dietary intake exceeds the acceptable daily or weekly

intake for humans.


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EU import conditions for seafood and other fishery

products

The European Commissions Directorate-General for Health and Consumers

(SANCO) is responsible for food safety in the European Union. Our import rules forfishery products and shellfish (bivalve molluscs) seek to guarantee that all

imports fulfil the same high standards as products from the EU Member States -

with respect to hygiene and consumer safety and, if relevant, also to the animal

health status. To ensure that imports can take place smoothly and efficiently,

interested countries and businesses should understand the fundamental principles

and philosophy of the European Food Law, which form the basis for our import rules.

Principles of the European Food Law

Our citizens have legitimate, high expectations regarding the safety and quality of

their food. To meet these expectations, the food law of the European Union

implements the principle of quality management and process-oriented controls

throughout the food chain - from the fishing vessel or aquaculture farm to the

consumers table. Spot checks on the end product alone would not provide the same

level of safety, quality and transparency to the consumer. To implement these

harmonised principles, the Food and Veterinary Office of the European Commission

is undertaking missions in all exporting countries.

General Rules for Fishery Products

Imports of fishery products into the European Union are subject to official

certification, which is based on the recognition of the competent authority of the non-

EU country by the European Commission. This formal recognition of the reliability of

the competent authority is a pre-requisite for the country to be eligible and authorized

to export to the European Union. Public authorities with the necessary legal powers

and resources must ensure credible inspection and controls throughout the

production chain, which cover all relevant aspects of hygiene, public health and, in

the case of aquaculture products, also animal health. All bilateral negotiations and

other relevant dialogue concerning imports of fishery products must be undertaken

by the national competent authority. All other interested parties and private

businesses wishing to export to the EU should contact their competent authority andcommunicate with the European Union via this channel.

Specific Key Elements

For all fishery products, countries of origin must be on a positive list of eligible

countries for the relevant product. The eligibility criteria are:

Exporting countries must have a competent authority which is responsible for

official controls throughout the production chain. The Authorities must beempowered, structured and resourced to implement effective inspection and


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guarantee credible public health and animal health attestations in the certificate to

accompany fishery products that are destined for the EU.

Live fish, their eggs and gametes intended for breeding and live bivalve molluscs

must fulfil the relevant animal health standards. This requires that the veterinaryservices must ensure effective enforcement of all necessary health controls and

monitoring programmes.

The national authorities must also guarantee that the relevant hygiene and public

health requirements are met. The hygiene legislation containsspecific requirements

on the structure of vessels, landing sites, processingestablishments and on

operational processes, freezing and storage. Theseprovisions are aimed at ensuring

high standards and at preventing anycontamination of the product during

processing.

Specific conditions apply for imports of live or processed bivalve molluscs (e.g.

mussels and clams), echinoderms (e.g. sea urchins) or marine gastropods (e.g. sea-

snails and conchs). These imports are only permitted if they come from approved

and listed production areas. The national authorities of exporting countries are

required to give guarantees on the classification of these products and the close

monitoring of the production zones to exclude contamination with certain marine

biotoxins causing shellfish poisoning.

In the case of aquaculture products, a control plan on heavy metals,contaminants, residues of pesticides and veterinary drugs must be inplace to

verify compliance with EU requirements.

A suitable control plan must be designed by thecompetent authority and submitted

to the European Commission for initial approval and yearly renewal.

Imports are only authorised from approved vessels and establishments (e.g.

processing plants, freezer or factory vessels, cold stores), which havebeen

inspected by the competent authority of the exporting country andfound to meet EU

requirements. The authority provides the necessaryguarantees and is obliged to

carry out regular inspections and take correctiveaction, if necessary. A list of such

approved establishments is maintained bythe European Commission and is

published on its website.

Inspections by the Commissions Food and Veterinary Off ice are necessary to

confirm compliance with the above requirements. Such an inspection mission is the

basis of establishing confidence between the EU Commission and the competent

authority of the exporting country.


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Border Inspection

Imports of fishery products from non-EU countries must enter the EU via an

approved Border Inspection Post under the authority of an official veterinarian. Each

consignment is subject to a systematic documentary check, identity check and, as

appropriate, a physical check. The frequency of physical checks depends on the riskprofile of the product and also on the results of previous checks. Consignments

which are found not to be compliant with Community (EU) legislation shall either be

destroyed or, under certain conditions, re dispatched within 60 days.

For information on personal imports, see:

http://ec.europa.eu/food/animal/animalproducts/personal_imports/index_en.htm

Training and Technical Assistance

The European Commission provides training, technical assistance and facilities for

institutional capacity building to help developing countries comply with EU rules. For

example, DG SANCO's Better Training for Safer Food initiative runs training for

official control staff of developing countries on EU standards for fishery and

aquaculture products. The training is aimed at broadening knowledge of EU

standards in these countries thereby improving levels of compliance. This helps to

ease developing countries' access to the EU market for their fishery products.

Additional, national and regional development programmes of the European Union

are available in individual countries, as well as bilateral aid projects of the Member

States. The delegations of the European Union can provide detailed information on

these programmes.

What are the formal steps towards approval for imports?

The EU has designed a procedure for the evaluation of the eligibility of third

countries for exporting fishery products to the EU.

1. The national authority of a third country must submit a formal request to the

Directorate-General for Health and Consumer Protection of the European

Commission to export fish, fishery products or bivalve molluscs to the EU. The

request should contain confirmation that the authority can fulfil all relevant

legal provisions to satisfy EU requirements.

2. The Directorate-General for Health and Consumer Protection sends out a

questionnaire which should be completed and returned. Information on

relevant legislation, competent authorities, hygiene and many other elements

are requested.

3. For aquaculture products, a residue monitoring plan of the exporting country
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must also be submitted and approved at this stage.

4. After the evaluation of the paper submission, an inspection by the Food and

Veterinary Office may be carried out to assess the situation on the spot. Such

an inspection is mandatory for high-risk products like shellfish.

5. Based on the results of the evaluation / inspection, and the guarantees given

by the exporting country, the Directorate-General for Health and Consumer

Protection proposes the listing of the country, the specific conditions under

which imports from that country will be authorised and the list of approved

establishments in the country. These are then discussed with representatives

of all EU Member States.

6. If the Member States have a favourable opinion on the proposal, the European

Commission adopts the specific import conditions. Lists of eligible

establishments can be amended at the request of the exporting country and

are made available for the public on the internet:

http://ec.europa.eu/food/food/biosafety/establishments/third_country/index_en.htm

PACKAGING REQUIREMENTS Packaging of fishery products have drawn WTOs attention way early in 1990.

Thus the Export Packaging Note No. 36was developed and is adopted and

under implementation in EU.

The various heads under which the packaging must be adapted to be

environmentally safe.

Source reduct ion

Use of less/fewer raw materials, especially

non-renewable materials by making packages

smaller and light and by material substitutions.

Energy requ irements

Use of packaging materials and methods,

which minimize energy consumption.


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Potent ia l for reuse

Packaging designed and constructed for multiple usage.

Potent ia l for recycl ing

Packaging from which the materials can be recovered for reuse as packagingor secondary applications.

Ease of disp osal

Packaging, which can be readily disposed of after use with minimal

environmental impacts.

Air , water and ground pol lu t ion

Use of packaging materials and methods, which minimize pollution during all

stages of production and use, as well as at final disposal.

LABELLING SPECIFICATIONS

In accordance with the Regulation (EC) 104/2000 (OJ L -17 21/01/2000)and

Regulation (EC) 2065/2001 (OJ L -278 23/10/2000),the following information must

be provided on the labeling or packaging of the fishery product, or by means of a

commercial document accompanying the goods:

1. Commercia l and scient i f ic designat ion o f the species:For this purpose,Member States publish a list of the commercial designations accepted in its territory.

2. Product ion method(caught at sea or in freshwater, or resulted from aquaculture)

indicated by the harmonised terminology


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3. Catch area:

Caught at sea:one of the areas mentioned in the Annex to the

Regulation 2065/2001;

Caught in freshwater:reference to the country of origin;

Aquaculture:reference to the country in which the product is farmed

The labels of products subject to harmonised marketing standards established

by Regulation (EC) 2406/96 (OJ L -334 23/12/1996)should include the

following details:

Country of origin in Roman letters at least 20 mm high

Scientific name and trade name

Presentation

Freshness and size categories

Net weight in kilograms

Date of grading and date of dispatch

Name and address of consignor

Lotsmust contain products of the same size and uniform freshness. The freshness

category, size category and presentation must be clearly and indelible marked, in

characters of at least 5 cm high, on labels affixed to the lot.

The informationprovided by labels must be easy to understand, easily visible, clearly

legible and indelible and must appear in the official language(s) of the Member State

where the product is marketed.

The customs tariffs for the concerned product

TARIFF AND DUTIES (TARIC)

Simulation date : 03/09/2014

TARIC code0306135000 (CRUSTACEAN FROZEN OR NON-FROZEN)

Country of origin/destinationIndia - IN (664)

No restrictions Import

Third country duty: 12.00%

Non preferential tariff quota : 0 %

End date 31/12/2008

Tariff preference (SPGL): 4.20 %

Documents required: (C 623) Transshipment certificate EXP.1


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AVAILABILITY OF INSURANCE

The insurance policies are categorized under

1. Insurance covering loss of consignment during shipping (damages, theft etc.)

2. Insurance covering credit risk.

ECGCis the agency which provides insurance cover against credit risk

Credit Insurance Policies:

1. SCR or Standard Policy includes:

a. Commercial Risks:

Insolvency of the buyer.

Failure of the buyer to make the payment due within a specified period,

normally four months from the due date.

Buyer's failure to accept the goods, subject to certain conditions.

b. Political Risks:

Imposition of restriction by the Government of the buyer's country.

War, civil war, revolution or civil disturbances in the buyer's country.

New import restrictions or cancellation of a valid import license in the buyer'scountry.

Interruption or diversion of voyage outside India resulting in payment of

additional freight or insurance charges which cannot be recovered from the

buyer.

Any other cause of loss occurring outside India not normally insured by

general insurers, and beyond the control of both the exporter and the buyer.

TRADE POLICY REGULATIONS

The HS codefor frozen shrimp is 030613and that of non-frozen is 030623.

There is no separate trade policyor procedure for fishery (shrimp) export from

our country.

Nevertheless, there are certain Duty Exempt ion Schemesapplicable under

specified products.


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CODEX ALIMENTARIUS NORMS:

The Codex Alimentarius Commission was created in 1963 by FAO and WHO.

The main purposes of this Programme are protecting health of the consumers

and ensuring fair trade practices in the food trade.

Codex code for Shrimp products are as follows:

SWOT ANALYSIS OF INDIAN SHRIMP EXPORT TO EUROPEAN UNION

QUALITY MANAGEMENT FOR EXPORTS : DISEASE MANAGEMENT

PRESENCE OF PATHOGEN IN DISEASED SHRIMP RENDERS IT NON

EXPORTABLE DUE TO STRINGENT SANITARY MEASURES IN

INTERNATIONAL MARKET.

SOME OF THE DISEASES WHICH AFFECT SHRIMP ARE:

1. Monodon Baculovirus Disease (MBV)

2. Hepatopancreatic Parvo-like Virus (HPV) Disease3. Yellow-head Disease (YHD)

Reference NumberYear ofadoption

Title Revision Year Amendment Year

CODEXSTAN 37 1991Standard for

Canned Shrimpsor Prawns

1 1995 NIL

CODEXSTAN 92 1981

Standard forQuick FrozenShrimps or

Prawns

1 1995 NIL
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4. Luminous Vibriosis

5. Black Gill Disease

6. Soft-shell syndrome

QUALITY MANAGEMENT FOR EXPORTS: HARVESTING

Has to be harvested in good condition within a short period of time.

Harvesting technique should not damage or excessively contaminate the

shrimp with waste.

Rapid harvesting will reduces risk of bacterial contamination and the shrimp

will still be fresh when reaching the processor.

Complete harvesting can be carried out by draining the pond water through a

bag net and hand picking.

The average culture period required is around 120-150 days during which

time the prawns will grow to 20-30 gm size (depending on the species).

QUALITY MANAGEMENT FOR EXPORTS: PROCESSING