Tight EU controls upset Indian seafood exporters

India's seafood exporters feel that the European Union, which was once touted the most lucrative export destination for Indian seafood exports, is slowly losing its sheen because of its stringent quality control norms coupled with the overall risk factors associated with exporting seafood to the EU, according to the Financial Express.

Limited ability to appeal against European Union (EU) health authorities and rejections of seafood consignments have made the EU a high-risk destination for Indian exporters.

Sources at the Seafood Exporters Association of India (SEAI) said, irrational and binding decisions of the EU health authorities at Brussels and veterinary inspectors at destination ports lead to higher expenses and loss for exporters.

In a meeting attended by officials of the Marine Exports Product Development Authority (MPEDA), Exports Inspection Council and SEAI, exporters alleged that jurisdiction of EU veterinary inspectors are often limitless and not confined to a book of procedures.

The EU has recently tightened entry into the zone through various measures, which include catch certificate and mandatory testing of 20 percent of all aquaculture products.

In the recent past, the EU has displaced the US as the single largest market for Indian seafood. In 2009-10, the EU had a share of 30.07 percent in dollar realisation. Anti-dumping duty on Indian shrimps by the US saw exporters focusing on the EU countries to increase exports and de-risk trade. "But through new regulations, the EU is also putting non-tariff barriers on Indian exports," an exporter said.

SEAI officials said that financial institutions are discouraging trade with the EU because of stringent penalties and uncertainties.

In the EU, unlike the US markets, rejection of consignment due to higher than permissible residue of anti-biotic or other toxins by EU veterinary inspectors is final and there is no scope for appeal. "In the case of the US, the exporter can send the sample to an independent laboratory and dispute the findings and go in for an appeal," SEAI officials said.

The EU also makes it mandatory to destroy the cargo, which the US does not.
(Source:www.cargonewsasia.com)