The increased controls will prolong the customs clearance process, resulting in rising costs. — VNA/VNS
HANOI: The recent move by the European Union (EU) to increase official controls on several farm products from Vietnam has notified producers and exporters of the importance of fully complying with the regulations of the import markets and improving competitiveness to make exports sustainable.
Under the EU’s announcement, starting from early this month, durians, peppers of genus capsicum and instant noodles containing spices, and seasonings or sauces from Vietnam will be under increased levels of official controls, with the frequency of identity and physical checks at 10%-50%.
Okra and dragon fruit are subject to special conditions for entry into the EU , due to contamination risk by mycotoxins, with the frequency of checks at 50% and 20%, respectively.
The EU updates its list of requirements every six months.
For durian, this is the first time the fruit is subject to control with a frequency of checks at 10%.
A representative from SK International which is exporting durian into the EU said that because durian exports into the EU are not huge, the damage to enterprises will be modest.
However, the bigger problem is that opportunities for durian in the EU are fading away.
Le Anh Trung, deputy chairman of the Dak Lak Durian Association, said that the increased controls will prolong the customs clearance process, resulting in rising costs.
Entering the market is already difficult, but maintaining market share can be even more difficult, he said.
If quality is not strictly controlled, the risk of increased non-tariff barriers is clear.
According to Tran Van Cong, Vietnamese Agricultural Counsellor to the EU, if shipments contain pesticide residue exceeding the allowable threshold, the EU will likely further increase the level of control to 20%-50%, or require mandatory food safety certificates.
Quantitative restrictions are one non-tariff barrier that Vietnamese goods encounter when penetrating international markets, including quotas, he said.
In trade liberalisation, quotas tend to be eliminated, however, quotas are still common for agricultural products. Besides, technical measures are also applied.
Ngo Xuan Nam, deputy director of the Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (SPS Vietnam), said that producers must strictly comply with requirements to ensure residue levels are below the allowable limits.
Carrying out controls on agricultural products is a regular activity for importing countries, but placement on the list for increased control is an alarm bell for farmers and exporters to better meet safety standards, he said.
The Agriculture and Rural Development Ministry is planning to propose to the EU to reduce the frequency of checks on several products based on the results of domestic residue controls which will remove difficulties and pave the way for more Vietnamese agricultural exports to the huge market.
It is necessary to Vietnam to thoroughly understand non-tariff barriers to promote exports and at the same time to protect domestic production.
In the long term, competitiveness must be enhanced through reducing costs and improving quality, Nam stressed. — Viet Nam News/ANN
