STREAMLINING EXPORT CERTIFICATE REQUIREMENTS FOR …fscf-ptin.apec.org/docs/events/2017/export-certificate-workshop/Export-Certificate...STREAMLINING EXPORT CERTIFICATE REQUIREMENTS

STREAMLINING EXPORT CERTIFICATE REQUIREMENTS FOR FOOD PRODUCTS IN THE APEC REGION: Facilitating Trade and Improving Food Safety by Advancing Science-based International Standards

Committee on Trade and InvestmentSub-Committee on Standards and ConformanceFood Safety Cooperation Forum – Partnership Training Institute Network

May 2017


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TABLE OF CONTENTS1. Why streamline export certificate requirements? . . . . . . . . . . . . . . . . . . . . . . . . . 1 2. Why APEC? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3. Certificate Requirements in APEC: Landscape and Challenges . . . . . . . . . . . . . 8

4. Good Practices for Designing and Implementing . . . . . . . . . . . . . . . . . . . . . . . 10 Science-based Certificate Requirements

5. Additional resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 a) DictionaryofExportCertificateTerms b) CompendiumofExportCertificateRequirementsbyAPECeconomies c) APECCompendiumonExportCertificationforWine d) MajorFoodSafetyRegulatoryChangesinAPECMember

Economies (since 2009) e) RiskAssessmentToolstoDeterminetheNeedforExportCertificat

Requirements f) TechnologyTools g) Internationalstandardsandguidance h) APEC-OECDIntegratedChecklistonRegulatoryReform


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1. WHY STREAMLINE EXPORT CERTIFICATE REQUIREMENTS?

Certificaterequirementsonlycontinuetogrow.Morethan80differentofficialcertificatesarebeingusedintheAPECregion,inhibitingtheefficientmovementoffoodbetweenAPECeconomies.

- “2017 APEC Export Certificates Current State of Play” analysis conducted using initial responses to the

2017 APEC Export Certificate Survey and publically available information.

53% of those surveyed in a report commissioned by theAPECBusinessAdvisory

Council(ABAC)viewcertificationas the most burdensome sanitary andphytosanitary(SPS)measure.- Non-Tariff Barriers in Agriculture and Food Trade in APEC: Business Perspectives on Impacts and

Solutions, University of Southern California, Marshall School of Business, November

2016, https://www2.abaconline.org/content/download/22613384


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Oneproduceroffrozenprocessedfoodsexplainedthatforaproductlikelasagna,each ingredient might need to have traceabilityandMRLdocumentation,whichcouldresultinover200pagesofcertificationpaperworkpershipment.Thesheervolumeofregulatoryrequirements–evenifeachindividualmeasureislegitimate–canactasaburdenonbusiness.- Non-Tariff Barriers in Agriculture and Food Trade in APEC: Business

Perspectives on Impacts and Solutions, University of Southern California, Marshall School of Business, November 2016, https://

www2.abaconline.org/content/download/22613384

AtonepointagovernmentrequiredBSE-freeattestationforafish

product even though bovine spongiformencephalopathy

(BSE)onlyexistsin beefruminants.

- APEC FSCF-PTIN Export Certificate Survey, 2009

U.S.exportersface tremendous complexityincomplyingwithproliferatingcertificaterequirements.Someof our member companies must obtain over 5,000 certificates(offreesale)peryearforlowriskprocessedproducts.

- The Grocery Manufacturers Association

based in Washington, D.C.

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Aseconomieshaveincreasinglyfocusedonfoodsafety,thenumberandcomplexityofcertificaterequirementsforimportedfoodshaveexpandedrapidly.Whilesomescience-

basedcertificaterequirementsmaybenecessarytoverifythesafetyofimportedfoods,thisproliferationstrainsbothgovernments’andcompanies’abilitytocomplywithandenforcecertificaterequirements.Consistent,transparent,risk-basedapplicationofrequirementswouldmoreefficientlyprotectpublichealthandalsofacilitatetradeinsafefoodproducts.

Official export certificates

Commercial documents

Customs documents

Other


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ThisAPECinitiativefocusesonstreamliningexportcertificatesinresponsetoAPECLeadershavingcalledin2011for,inparticular,thereductionof“unnecessaryrequirementsinofficialexportcertificatesforagriculturalproducts.”APECLeaders’2011Statementalsocalledforeliminating“requirementsthatarenotbasedonscienceandessentialtoensuringfoodsafety.”

Nevertheless,therequirementsforexportcertificateshavegrownmorecomplex.Therehasbeenagrowingtrendofeconomiesrequiringduplicative,redundant,unavailable,and/orunnecessaryexportcertificatesandattestations.Thiscreatescomplianceandenforcementburdensforgovernmentsandcompanies,canleadtounexpectedcostsanddelaysinshippinggoodswhichaffectsaccesstosafefood,anddoesnotbenefitpublichealthifrequirementsarenotbasedonrisk.Streamliningscience-basedcertificaterequirementsacrosstheAPECregionwouldfacilitatetradeinsafefoodanddecreasecostsforgovernments,businesses,andconsumers.

AllAPECmembereconomiesareWTOmembersandarethusobligatedtofollowtheAgreementontheApplicationofSanitaryandPhytosanitaryMeasures(theSPSAgreement).TheSPSAgreementsetsoutbasicrulesforfoodsafetystandardsandnotesthatregulationsmustbebasedonscienceandappliedonlytotheextentnecessarytoprotecthuman,animal,orplantlifeorhealth.Officialexportcertificatesshouldonlyberequiredwhereattestationsoressentialinformationarenecessarytoensurethatfoodsafetyrequirementsand/orfairpracticesinthefoodtradearemet.Whereafoodproducthasnoorlowrisktohumanhealth,itmaynotbenecessarytorequireanycertificate.

Streamlining science-based certificate requirements across the APEC region would facilitate trade in safe food and decrease costs for governments, businesses, and consumers.

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Examples of Commonly Required Documents

Economies (governments and private parties) apply these types of certificates in a variety of formats. The certificates are illustrative and are not meant to be definitive.

Certificate of

Free Sale

ReligiousCertificate

PackingList

Commercial Invoice

AffidavitCertificateof Quality/Condition

Certificateof Analysis

Certificateof Origin

HealthCertificate

GMPCertificate

Technical Data SheetManufacturer’s

Declaration of

Conformity

Official Health

Certificate

ImportPermit/License

Phyto-Sanitary

CertificateSanitary

Certificate

Certificateof

Endangered Species


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2. WHY APEC? ImprovingfoodsafetywhilefacilitatingfoodtradehasbeenapriorityofAPECsince2007whenAustraliaandChinaestablishedtheFood Safety Cooperation Forum (FSCF) . The FSCF brings together foodsafetyregulatorsfromtheAPECeconomiesthatshareacommitmenttoimprovefoodsafetystandardsandregulatorysystemsintheAPECregionbyrelyinguponscience-basedinternationalstandardsandbestpracticesconsistentwithWTOMembers’rightsandobligationsunderboththeSPSandTBTAgreements.Agreedpriorityworkareasincludefoodsafetyregulatorysystems;inspectionandcertificationsystems;technicalskills;informationsharing;andcommunicationnetworks.

CapacitybuildingworkiscarriedoutthroughAPEC-fundedandotherprojects,includingthroughthePartnershipTrainingInstituteNetwork(PTIN),aU.S.administeredpublic-privatepartnershipundertheFSCFthatbringstogetherregulators,industryandacademiatotacklefoodsafetychallenges(http://fscf-ptin.apec.org/).Exportcertificateshavebeenafocussince2010whenthefirstexportcertificateroundtablewasheldinAustraliaonthemarginsoftheCodex Committee on Food Import Export Inspection and Certification Systems.

Improving food safety while facilitating food trade has been a priority of APEC since 2007 when Australia and China established the Food Safety Cooperation Forum (FSCF).

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ThegoalistofacilitateadialogueamongAPECmembereconomies,includinggovernmentofficials,industryandacademia,ontheappropriateuseofscience-basedexportcertificatesandhowtheycanbestbeusedtoensurefoodsafety andfacilitatethetradeofsafefoodproducts.Asubsequentworkshopin2012andtheestablishmentofelectronicworkinggroupshaveyieldeddataontheuseofcertificatesbyAPECeconomiesandinputonessentialtoolsforaligningcertificaterequirements.

TheeffortfullyalignswiththedirectionbyAPECLeaders(2011Statement)to“reduceunnecessaryrequirementsinofficialexportcertificatesforagriculturalproductsandseeking,whereappropriate,toeliminaterequirementsthatarenotbasedonscienceandessentialtoensuringfoodsafety;”

Theworkwaselevatedfurtherin2013whentheFSCFendorsedamulti-yearinitiativetoachievealignmentby2020inselectedareasoffoodsafetystandardsandregulatoryproceduresasdirectedbyAPECMinistersundertheAPECRegulatoryCooperationPlan.FSCFeconomiesagreedtoimplementanExportCertificateRoadmapalongwithanotheronPesticideMaximumResidueLimits.

ExportcertificateshavealsobeenafocusfortheWineRegulatoryForum which agreed in2016onanAPECModelWineCertificatetostreamlineexistingexportcertificaterequirementsforwine.ThemainpurposeoftheAPECModelWineCertificateistohaveAPECimportingeconomies,thatrequiremultiplecertificatessuchastheCertificateofOrigin,CertificateofAuthenticity/FreeSale,andtheCertificateofHealth/Sanitation,acceptone,singleform,theAPECModelWineCertificate,whichprovidesthesameinformationasthepreviouslymentionedcertificates.TheAPECModelWineCertificatewillprovidecostsavingstoAPECeconomiesinreducedstaff-timecurrentlydevotedtoprocessingunnecessaryand/orduplicativeexportcertificateswithoutjeopardizingpublichealthorsafety.ThereisongoinginterestamongsomeAPECeconomiesinexpandingworkintoadditionalsectormodelssuchasfordairy.StreamliningrequirementsandeliminatingunnecessarycertificatesthroughtheFSCF’songoingworkhastremendouspotentialtofacilitatetrade.

APEC Export Certificate Workshop 2012


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3. CERTIFICATE REQUIREMENTS IN APEC: LANDSCAPE AND CHALLENGES Morethan80differentofficialcertificatesarebeingusedintheAPECregion,accordingtopublicallyavailableinformation,inhibitingtheefficientmovementoffoodbetweenAPECeconomies.

In2009anAPECExportCertificateSurveywasconducted,showingawiderange inthenumberandtypesofexportcertificatesrequired.(seelink http://fscf-ptin.apec.org/export-certificate)

Certificaterequirementsonlycontinuetogrow.From2008to2016,asignificantnumberofAPECeconomiesundertookbroadfoodsafetyregulatorychanges.Thesechangesoftenincludedchangestocertificaterequirementsimpactingvirtuallyallcommoditysectors.Anyprocessorprocedurechangecanresultinincreasingcostsandburdenonregulatorsinboththeimportingandexportingeconomiesaswellastotheimpactedforeignanddomesticindustrysectors.Suchchangesoftencreatearippleeffectontheentiresupplychainresultinginbusinessesneedingtomodifytheirinternalandexternalprocessesandprocedurestoadjusttoanewregulatoryclimate.Itiscriticalthatmajorregulatoryreviewsandchangesbebasedonscienceanddoneinatransparentandconsultativemannerinordertoensurethattheimportingparty’sappropriatelevelofprotectioncanbeachievedandunderstoodbyallstakeholders.MoreinformationonfoodsafetyregulatorychangesacrosstheAPECregionfrom2008-2016maybefoundintheAdditionalResourcessection.

Certificate requirements only continue to grow … any process or procedure change can result in increasing costs and burden on regulators in both the importing and exporting economies as well as the impacted foreign and domestic industry sectors … It is critical that major regulatory reviews and changes be based on science and done in a transparent and consultative manor.

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4. GOOD PRACTICES FOR DESIGNING AND IMPLEMENTING SCIENCE-BASED CERTIFICATION REQUIREMENTSThroughworkcompletedandunderwayinFSCFandPTIN,wearemovingtowardcommonunderstandingandapplicationofgoodpracticesfordesigningandimplementingscience-basedcertificaterequirements.

ThefollowingtablesummarizesselectedgoodpracticesconsistentwithCodexprinciplesforcertification;illustrativebenefitstoconsumers,governments,and traders;andidentifiesprogressandgapsinimplementingthesegoodpracticesintheAPECregion.

GOOD PRACTICE BENEFITS OUTLOOK IN APEC REGION

Applygeneralgoodregulatorypractices(GRP)tofoodsafetyandcertificaterequirements

GRPscontributedirectlyto trade, investment, job creation, and sustained economic growth in the APECregion

Positive – economies have committed to advance GRPworkandfoodsafetyhasbeenhighlightedas an important sector forapplicationofGRPprinciples.

Useconsistentterminology Minimizesconfusionandfacilitatescommunication

Positive – FSCF PTIN has produced a dictionary of commonexportcertificateterms that can be updated as needed

Useaharmonizedcertificateformat(suchas the Codex generic certificate)

Promotesglobalharmonizationandadherence to science-basedprinciples,simplifiesattestations,minimizestechnicalbarriers,andinspiresconfidenceinqualityofcertificates

Positive – FSCF PTIN supportstheuseofvoluntaryinternationalstandardsaswellastheuseofguidanceandtoolsproducedbyinternationalstandardsettingbodies

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Analyzecosts,benefits,andalternativestocertificaterequirements

Ensures protection of humanhealthatmostefficientcost

Areafornear-termimprovement – comprehensive data on currentrequirements,costs,andbenefits(byeconomyandregionally)

Conduct science-based assessments and use a risk-based approach, onlyrequiringcertificatescommensurate with risk (includingprioritizingsystems recognition, strengthening pre-border activities, etc)

Focuses resources on greatest risks to human health;minimizespotentialcostbylimitingneedtoexpend resources; and systemcontrolapproachlendsitselftoglobalshifttoward preventative and modernizedfoodsafetysystems

Areafornearandlong-termimprovement.Knowledge,experienceandconfidencewith trading partners are necessary to reduce need forcomplicatedcertificate/attestations.Trustbetweeneconomies re:thecapabilityofthenationalfoodcontrolsystemsiscritical

Consideravailabletechnologywhencertificatesarerequired:SinglewindowE-certification

Can decrease transaction times and costs and ease certificateverification

Areaforlong-termimprovement – as economies strengthen adherence to fundamentalcertificateprinciples,implementationofscience-basedcertificaterequirementscanbefurtherimproved by considering use ofmoderntechnologytools


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5. ADDITIONAL RESOURCESHereareadditionalresourcestoreferenceasAPECeconomiesconsiderchangingandstreamliningtheirexportcertificaterequirements.

a) Dictionary of Export Certificate Terms Definitionsoftermscommonlyusedinthefoodtrade.Theintendedpurpose

istoprovidecommonunderstandingalongthesupplychain.Economiesareencouragedtocommentonthedefinitionsandtosuggestothertermsthatshouldbeincluded.

http://fscf-ptin.apec.org/events/export-certificate-workshop-2017/

b) Compendium of Export Certificate Requirements by APEC economies In2009APECeconomiescompletedasurveythatincludedalistingofallrequired

certificatesforimportedfood.http://fscf-ptin.apec.org/events/export-certificate-workshop-2017/

c) APEC Compendium on Export Certification for Wine Outlinesexportcertificationrequirementsintheregion.TheAPECModelWine

ExportCertificate,approvedbyregulatoryandtradeofficialsfromAPECmembereconomies,willconsolidatetheseexistingcertificaterequirementsintoasinglecertificateusableacrosstheregion.TheAPECModelWineExportCertificateanditsinstructionsareavailableathttp://wineregulatoryforum.blogspot.be/p/model-wine-cert.html.

d) Major Food Safety Regulatory Changes in APEC Member Economies (since 2009) Areviewofpublicinformationshowedthat11APECeconomiesundertookbroad

foodsafetyregulatorychangesbetween2009and2017. http://fscf-ptin.apec.org/events/export-certificate-workshop-2017/

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e) Risk Assessment Tools to Determine the Need for Export Certificate Requirements

•FAORiskBasedFoodControlManual http://www.fao.org/3/a-i5381e.pdf

•I-Risk(UnitedStates) https://irisk.foodrisk.org/

•Risk-BasedFoodInspectionManual ftp://ftp.fao.org/docrep/fao/010/i0096e/i0096e00.pdf

f) Technology Tools Toensureconsistencyandinteroperabilitytheseresourcesmaybeusefulto

economiesconsideringnewtechnology. •SingleWindow •APEC

http://www.apec.org/Groups/Committee-on-Trade-and-Investment/Sub-Committee-on-Customs-Procedures

•UnitedNationsCentreforTradeFacilitationandElectronicBusiness(UN/CEFACT) http://www.unece.org/cefact.html

•WorldCustomsOrganizationSingleWindowGuidelines http://www.wcoomd.org/en/topics/facilitation/instrument-and-tools/tools/single-window-guidelines.aspx

•Electronic-certification •APEC

http://www.apec.org/Groups/Committee-on-Trade-and-Investment/Electronic-Commerce-Steering-Group.aspx

•StandardsandTradeDevelopmentFacility(STDF) •SeeOctober2015workinggroupdocuments

http://www.standardsfacility.org/working-group-documents


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g) International standards and guidance •CodexAlimentarius

http://www.fao.org/fao-who-codexalimentarius/committees/committee-detail/en/?committee=CCFICS

•WorldOrganizationforAnimalHealth http://www.oie.int/

•PlantProtectionConvention https://www.ippc.int/en/

h) APEC-OECD Integrated Checklist on Regulatory Reform In2005APECandtheOECDdevelopedanIntegratedChecklistonRegulatory

Reform,whichlaysoutavoluntaryGRPframeworkforself-assessment. https://www.oecd.org/regreform/34989455.pdf

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