June 26, 2007

 

EU licence requirements for Thai and Brazil poultry imports criticised 

 

 

New requirements from the EU requiring companies importing chickens from Brazil and Thailand to have licenses or be subjected to the full duty has been criticised as being disruptive to trade.

 

EU companies importing chickens from Brazil and Thailand and their exporters would need to have licenses from 1 July or be subjected to the full duties.

 

The EU requirements with their complicated quotas have been very disruptive to trade, according to Liz Murphy, secretary general of the International Meat Trade Association.

 

The rules have only been announced recently and some in the industry may be unaware that the rules would be effected in July, she said.

 

The EU has quotas on cooked chicken, salted chicken and seasoned turkey products, set based on previous negotiations with Brazil and Thailand.

 

Importers or exporters would have to show they have imported or exported at least 50 tonnes of poultry meat in the two 12-months period preceding application for a licence.

 

Processors would also be required to provide proof that, in the two 12-month periods before the application, they have processed at least 1,000 tonnes of poultry meat. This would enable them to obtain a licence for a importing a minimum of 100 tonnes up to a maximum of 10 percent of the quantity available for each quarter.

 

Both groups must also obtain a certificate from the exporting country showing that the quantities involved are within required quotas.

Companies with such licences would pay a reduced duty of around 8 percent until the EU quota is met while those without licences would be subject to full duty.

 

The license requirements are a response to EU and UK farmers who want to level the playing field for the industry. The farmers have been protesting that some chickens have been processed with a minimal amount of salt in order to qualify for the lower tariffs for processed chickens.

 

The British Poultry Council said it was pleased that a system has been instituted.  However, its members would have preferred the EU to raise the bar for those applying for a licence. Members also hope EU authorities could impose a bond on exporters to cut speculation.