By Aaron Parke LLB; LEC; MSc. A-Z Information Jamaica Limited

November 12, 2013

Perspectives on the French Caribbean Outermost French Caribbean Outermost

Regions (FCORS) Regions (FCORS) - Doing Business

OUTLINE OF PRESENTATION

• Ease of doing business• Technical Barriers to Trade • The EU Standards and Certification • Conformity Assessment Procedures• Import Documentation• Labelling Requirements

Ease of doing business

• Relatively difficult to do business with the FCORs.

• However consider that in terms of the ranking in ease of doing business France/FCORs rank 38 (2012 WB) compared to CARICOM ( TT 66; JA 94; Bds 91; Dom 77; Belize 106)

• Economies are ranked on their ease of doing business, from 1 – 189. A high ranking on the ease of doing business index means the regulatory environment is more conducive to the starting and operation of a local firms

Ease of doing Business Contd.• Factors for ranking ease of doing business include;• Starting a Business• Dealing with construction Permits• Getting electricity• Registering Property• Getting Credit• Protecting Investors• Paying Taxes• Trading across Borders• Enforcing Contracts• Resolving Insolvency

Technical Barriers to Trade

• Technical barriers to trade (TBTs) are wide ranging measures that countries use to regulate markets, protect their consumers, or preserve their natural resources among other objectives.

• They can also be used to discriminate against imports in order to protect domestic industries. They are essentially a category of nontariff barriers to trade.

Technical Barriers to Trade Contd.Major barriers to Trade with the FCORs include;• Language differences (English, Dutch, Spanish and French)• Inadequate transportation – lack of availability and cost of services• Challenges in meeting French/EU Standards and technical requirements;

Technical Barriers to Trade Contd.

• Lack of knowledge of the French System;• Taxation• Market structure• Market intelligence• issues relating to Market entry strategy (pricing; market

positioning and promotion)

• Lack of on the ground representation in the French Caribbean and CARIFORUM to assist Exporters in those markets

Technical Barriers to Trade Contd.• Overall lack of market information that can

guide Exporters in taking meaningful decisions on Opportunities in the outermost regions.• The French and hence FCORs invariably apply

standards which are somewhat higher than those of the EU. • Recent experiences have indicated that perhaps

the greatest hurdle to increasing exports to the EU relate to product standards and regulation

EU STANDARDS AND CERTIFICATION• The standards required for products in the

FCORs are developed in Europe and apply throughout the European single market• European Standard (EN) is a standard that has

been adopted by one of the three recognized European Standards Organisations (ESOs): CEN, CENELEC or ETSI• Although rather technical and often unknown to

the public and media, they represent one of the most important issues for businesses

EU STANDARDS AND CERTIFICATION Contd.• Prior to exporting, manufacturers have to

consider certification for the FCOR/EU market• Certification is about conformity assessment

(testing and certification) in order to declare compliance with EU regulatory requirements. • For the majority of exported products,

compliance is visibly testified by the use of CE marking. Use of standards is part of the process

EU STANDARDS AND CERTIFICATION Contd.• Testing and certification for the Domestic, CARICOM and in some

cases the US market, is not sufficient to meet the requirements for the EU market

• EU legislation harmonizes mandatory requirements for product safety throughout the EU therefore a manufacturer only needs to go through the process once and can then export to all 27 EU member

• Note the harmonized European EN standards (http://ec.europa.eu/enterprise/policies/european-standards/harmonised-standards/index_en.htm); (CEN-European Committee for Standardization); (ASTI(American National Standards Institute)

EU STANDARDS AND CERTIFICATION STEPS• 1. Market research

• 2. Find the applicable directive (legislation) (http://ec.europa.eu/enterprise/sectors_en.htm)

• 3. Determine the essential requirements in the directive (usually Annex I)

EU STANDARDS AND CERTIFICATION STEPS• 4. Note the harmonized European EN standards

(http://ec.europa.eu/enterprise/policies/european-standards/harmonised-standards/index_en.htm); (CEN-European Committee for Standardization);

• 5.Choose the appropriate conformity assessment module as described in the directive’s annex or presented in flow charts in the CE marking guidance booklet.

Information source(www.ec.europa.eu/enterprise/policies/single-market-goods/

regulatory-policies-common-rules-for- Products/index_en.htm or www.ec.europa.eu/CEmarking)

EU STANDARDS AND CERTIFICATION STEPS• 6. Locate Notified Bodies (accredited test

laboratories) – if required

• 7. Create a Technical File and Declaration of Conformity and apply CE marking

• 8. Consider working with consultants in the FCORs to complete registration

Conformity Assessment Procedures• Step 1: Determine which Directives apply• Step 2: Determine what conformity processes apply• Step 3: Determine what technical assessments apply. (This

step is derived for the Directives and the applicable standards).

• Step 4: Prepare the technical reports and technical file. No requirement to use a Notified Body. Self- assessment is perfectly acceptable as is in house testing.

Conformity Assessment Procedures Contd.• Step 5: Sign a Declaration of Conformity/Incorporation• Step 6: Mark the product with the CE mark and place it on the

market in the EU.• Step 7: The Declaration of Conformity/Incorporation and

technical file are made available to the relevant EU authorities on their demand, usually during an audit. These documents may be held by the importer or manufacturer as Authorized Representative or an agent appointed by the importer or manufacturer. The technical file may be held outside of the EU.

Conformity Assessment Procedures Contd.• EUROPEAN DECLARATION OF CONFORMITY• We, (Company name, Address, Phone, FAX) declare under our sole responsibility that the product• _________________________________________________________________________________• (name, type or model, lot, batch or serial number, possibly sources and numbers of items)• to which this declaration relates is in conformity with the following standard(s) or other normative

document(s)• __________________________________________________________________________________• (title and/or number and date of issue of the standard(s) or other normative document(s)• (if applicable) following the provisions or_______________________________________________. Directive(s)• (Machinery, Electromagnetic Compatibility, etc.)• The Technical Construction File is maintained at: (give the address of the facility where the File is maintained).• The authorized representative located within the Community is:• _____________________________________________________________________________________________

_• (name, address, phone, FAX)• <NOTE: The authorized representative must be located within one of the member states of the EEC.>• Per Annex II.B of the Machinery Directive (98/37/EC):• The machinery, product, assembly or sub-assembly covered by this Declaration of Conformity must not be put• into service until the machinery into which it is to be incorporated has been declared in conformity with the• provisions of the applicable Directive(s). This statement is only necessary where the product is to be• incorporated into a machine or system (e.g. a safety component)• Date of issue: .........................................• Place of issue: .........................................................• (Signature of authorized person)• (Typed name of authorized person

Conformity Assessment Procedures Contd.• Standards and certification and registration requirements are

normally high for;• Processed Food products (foods generally)• Chemicals substances (REACH)• Cosmetics and personal care products• Construction products • Personal Protective products/equipment• Packaging and Packaging waste • N.B. Restrictions on the use of certain hazardous products

Some relevant standards for products targeted for exports to the FCORs1. Household Chemicals - Regulation 648/2004 updates and consolidates existing Directives on detergents. It imposes a two-tier testing regime on the biodegradability of the active ingredients of detergents (known as surfactants).•Regulation (EU) No 259/2012 amending Regulation (EC) No 648/2004 as regards the use of phosphates, other phosphorus compounds in laundry and dishwasher detergents•Biocides Directive 98/8/EC & Biocides and Regulation (EU) 528/2012•Directive 75/324/EEC on aerosol dispensers•Directive 94/62/EC on packaging and packaging waste

Some relevant standards for products targeted for exports to the FCORsGarbage Bags.•The applicable EU standard for biodegradable plastic bags for composting is European norm EN13432 which requires that the bag degrades at least 60% within 180 days or less. The Totally Degradable Plastic Additives (TDPA additives), supplied by EPI uses custom compounders that are ISO 9000 certified in the UK, USA and Canada are incorporated into traditional plastics to make them degradable and biodegradable. Normally the industry produces biodegradable garbage bags to meet FDA, ISO14855, ISO9001 and EU standard

Some relevant standards for products targeted for exports to the FCORs

Clay Roof Tiles etc.•The applicable European standard is CSN EN 1304- Clay roofing tiles and fittings - Product definitions and specifications. This standard specifies requirements for clay roofing tiles and fittings for pitched roof coverings and wall cladding and lining. It applies to all tiles and fittings as defined in Clause 3 of the standard.

Some relevant standards for products targeted for exports to the FCORs

Cosmetics•The EU regulations for Cosmetics are found in Council Directive 76/768/EEC of 27 July 1976 on the approximation of the laws of the Member States relating to cosmetic products (Cosmetics Directive). This Directive is replaced by Regulation (EC) No 1223/2009 from 11 July 2013. Technical adaptations to the Cosmetics Regulation are found in Commission Regulation (EU) No 344/2013 of 4 April 2013 amending Annexes II, III, V and VI to Regulation (EC) No 1223/2009 of the European Parliament and of the Council on cosmetic product

Some relevant standards for products targeted for exports to the FCORs

Office and Home Furniture•There are no specific Directives for the furniture sector but several Directives have implications for the industry, in particular regarding environmental, chemical and health and safety aspects.•Directive on integrated pollution prevention and control (IPPC) (Directive 2008/1/EC -concerning integrated pollution prevention and control (codified version)•Directive on Volatile Organic Compounds (VOCs) - (Directive 1999/13/EC) - the limitation of emissions of volatile organic compounds due to the use of organic solvents in certain activities and installations.•Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemical substances (REACH) (Regulation (EC) No 1907/2006, amendments and implementation legislation related to REACH )•Directive on waste (Directive 2008/98/EC )

Some relevant standards for products targeted for exports to the FCORs

Confectionery•The European Union (EU) has been updating legislation on food labelling to promote consumer awareness about not-so-healthy ingredients in food products. One key issue for EU manufacturers are new provisions within the EU’s food information to consumers (FIC) regulation (1169/2011) which mandated that by the end of a five-year implementation phase (starting December 2011), all pre-packaged food must be labelled with a nutrition declaration consisting of energy, saturated fat, carbohydrates, protein, saturates, sugar and salt quantities.

Some relevant standards for products targeted for exports to the FCORs

• The regulation calls for energy values and amounts of nutrients to be expressed per 100g/100ml – or per portion where appropriate – and requires labelling to be clear and legible: establishing a minimum font size for the mandatory information of 1.2mm, and 0.9mm for products whose packaging has a largest surface of less than 80cm2. This is not expected to have a negative impact on the sales of sweets and bakery items.

Steps for Food companies to meet quality specifications• Ingredient specification• Approved suppliers list• Product formulation/Recipe’• Product Standards( HACCP based)• Manufacturing procedures • In- processs records• Packaging and labelling • Good manufacturing practices and sanitation• Warehousing and storage• Laboratory analysis • Recall Plan

Import Documentation• The following documents are generally required by customs

for imports:• Bill of lading or Airway bill• Commercial invoice – written in French or carrying a

translation• Certificate of origin• EUR 1 circulation certificate (for exemption of certain taxes as

an ACP member)• Phytosanitary, fumigation or disinfection, zoosanitary

certificate where

Labelling Requirements• The purpose of product labelling is to provide complete

information on the content and composition of products in order to protect the consumer’s health and interest. In turn the incentive for manufacturers is that a well labelled product significantly decreases liability

Labelling Requirements• General Requirements;• Must be in French . The writing must be clear and non-

promotional• Be used to properly identify the product. • Specify the ingredients or material constituting the product

starting with the one with the highest content• State the net quantity of product (in metric units). • Carry the product’s date of manufacture; recommended ‘best

used before’ date; and expiry date.

Labelling Requirements• Include instructions on usage and care. • State the name of the producer, manufacturer or distributor. • Registered brand names and trademarks must be used. • State the country of origin and the lot number. • Inform of any special sales conditions or limitations of the

product. • Carry tax-included prices for all pre-packaged goods except

those sold by mail order. • Barcode price labelling generally use the GENCOD that is the

French system of the EAN