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New Import Regulation (EC) No. 1991/2006 commented by IMO

End of December 2006 and shortly before Christmas break, the European Council decided on amending the EU Regulation regarding import.

Confusion
The firstly published Regulation (EC) No. 1997/2006 of 19th December 2006 has meanwhile been cancelled and Regulation (EG) No. 1991/2006 of 21st December 2006 (published: ABl. L 411 of 30.12.2006) has been officially reported to be the valid version.

Facts
  1. The new import Regulation (EC) No. 1991/2006 came into force on 1 January 2007, however the present procedures will fully be applied during a transitional period of approx. 2 years.
  2. The procedure for accepting Third Countries’ inspection systems remains (Third Country List; Art. 11.1 in the old Regulation).
  3. The system of import authorizations, up to now the most common method of importing, has been taken out (former Art. 11.6), but will continue to be applied under a transitional period of probably more than 2 years.
  4. The customs is not longer involved.
  5. Two new systems for approving individual inspection (certification) bodies active in Third Countries have been introduced.
    a) One system is where the certification is conducted directly to the EU Regulation and
    b) The other is where the certification is carried out to an equivalent standard.
Recognition of Third Countries
Art. 11 (3) and (4)
The new system where the EU Commission can accept another country‘s inspection and certification system (including national standards) is almost the same as in article 11.1 of the previous regulation. To accept the national inspection system, the Third Country has to follow:
a) standards that are EQUIVALENT to the EU Regulation;
b) The inspection arrangements have to be EQUIVALENT.
c) The Codex Alimentarius Guidelines have to be taken into account.

Recognition of an inspection body or authority – Compliance
COMPLIANCE / KONFORMITÄT Art. 11 (2)
  • The EU-Commission is directly responsible for the recognition of the inspection bodies.
  • Inspection is conducted directly to the EU Regulation.
  • The inspection bodies need to be accredited according ISO 65.
  • Constant supervision of the inspection bodies by the Commission with the help of the member states; based on risk assessment.
  • Transaction certificates are NOT required.
The first method for acceptance of an inspection body is where the production method fully complies with the EU Regulation, meaning that the scope of inspection is Regulation (EC) No. 2092/91 itself, regardless in which country the inspection is conducted. The inspection bodies have to be accredited to EN 45011/ISO 65, which implies that they have to undergo a regular on-the-spot evaluation, monitoring and multi-annual re-assessment of their activities by the accreditation body. The Commission is responsible for the recognition of the inspection bodies and can use experts for examining the performance and can be assisted by the Member States. It is also stated that the nature of the supervision of the inspection body shall be based on the risk of occurrence of fraud by the operators. A detailed description of procedures how this will be implemented is not yet in place.

Recognition of an inspection body or authority – Equivalence
EQUIVALENCE / GLEICHWERTIGKEIT Art. 11 (5)
  • Commission is directly responsible for the recognition of the inspection bodies.
  • Inspection is conducted according to a standard which is equivalent to the EU-Regulation.
  • Constant supervision of the inspection bodies by the Commission with the help of the member states; based on risk assessment.
  • Accreditation according ISO 65 is not a must but Codex Alimentarius will be taken into account.
  • Transaction certificates are required.
The second possibility for acceptance of an inspection body applies for organizations, who conduct inspections to an equivalent standard to the EU Regulation. The registration procedure is quite similar to that described above for the bodies inspecting directly to the EU Regulation: the Commission is responsible for the recognition of the inspection bodies and their constant supervision. The assessment of equivalence will take Codex Alimentarius guidelines into account, however an accreditation to EN 45011/ISO65 is not stated as a requirement.

In contrary to the registration procedure of compliant inspection bodies, equivalent inspection bodies will have to provide for inspection certificates (transaction certificates), meaning that each consignment has to be accompanied by such a documents as it has been the case for all imports from Third countries so far.

Transitional system Art. 11 (6)
  • No changes in the import procedures for the time being.
  • The system will expire 12 months after the Commission has published the first list of inspection bodies.
  • 24 month after the list is published the import authorisations (Art. 11.6) will expire.
As a matter of fact, for the time being there will be no chance in the import procedures! Until the new system is in place and inspection bodies have been officially approved by the Commission the previous system described in article 11.6 – the so called import authorizations – will continue. For all products imported from non EEC countries – with the exception of countries listed on the Third Country list – import authorizations have still to be requested from the competent authorities. The regime of transaction certificates including customs stamp and confirmation of the first consignee will be fully applied.
This system will expire 12 months after the Commission have published the first list of approved inspection bodies and authorities that are approved for working with standards deemed to be equivalent to the EU Regulation. Twenty-four months after the list is published the import authorisations to 11.6 will expire. All authorisations for
Imports that have been given before the last of December 2006 will expire at the end of December 2007.
Summary

 

 

Third Country system
Art. 11 (4)

 
Compliant inspection body / authority
Art. 11 (2)
 
Equivalent inspection body / authority
Art. 11 (5)
 
Standards inspected to Regulation (EU) 2092/91  Equivalent standard  Compliant standards  Equivalent standard 
Basis for assessment  Codex taken into account when assessed  EN 45011 / ISO 65  Codex taken into account when assessed. 
Assessment by  The EU Commission may entrust experts to do the assessment.  Accreditation bodies  Accreditation body or competent authority. The EU Commission may entrust experts to do the assessment. 
Supervision by  The EU Commission may entrust experts to conduct spot checks and checks of the performance in Third Countries.  Accreditation body; the EU Commission
may entrust experts to conduct spot checks and checks of performance in Third Country
 
Accreditation body; the EU Commission
may entrust experts to conduct spot checks and checks of performance in Third Country 
Supervision type  Yearly report from Third Countries to EU Commission; Commission and Member States to ensure appropriate
supervision. 
There shall be a regular on-the-spot evaluation, monitoring and multi-annual re-assessment of their activities by the accreditation body.  There shall be a regular on-the-spot evaluation, monitoring and multi-annual re-assessment of
their activities by the accreditation body. 
Certificate following the goods of the first consignee  Original transaction certificate to accompany the goods.  Not requested.  Original transaction certificate to accompany the goods. 
Member State involvement  EU Commission assisted by the Member States will ensure appropriate supervision.  EU Commission assisted by the Member States will ensure appropriate supervision.  EU Commission assisted by the Member States will ensure appropriate supervision. 
Official list  Country listed.  Inspection body / authority listed.  Inspection body / authority listed. 

Consequences

  1. Through intensive lobbying, the big market players (retailers) have finally succeeded to turn the EU’s import procedures upside-down: by abolishing import authorizations and transaction certificates trade will in future get easier and faster market access. It will now be easy to switch suppliers within minutes whenever the price is more favourable. This could result in a disadvantage for the producers as contract production and long lasting trade relations will definitely loose importance.
  2. The system of transaction certificates will only remain for the Third Country List and Equivalent inspection bodies. As it is likely that the majority of the imports will be handled through Compliant inspection bodies, the system of transaction certificates will be of no control relevant importance in the near future. This has to be regarded as a substantial draw-back in quality and traceability of the overall EU inspection and certification system and it will now be fully up to the buyers to request for the necessary prove of a product’s origin and organic quality.
  3. The application procedures for inspection bodies at the Commission are still completely unclear. Neither has anything been determined regarding the rules for the application and its time frame, nor are the costs involved with this application known. This leaves international inspection bodies in a stage of uncertainty.
  4. It will probably take quite some time before the new system is up and running. It normally takes time to evaluate certification bodies, and the list of accepted inspection bodies will have to have a certain length before it can be published – once it is published the transitional system will be closed down within a year. Strange enough, in this point the Regulation refers to the list of equivalent inspection bodies and not to the far more important list of compliant inspection bodies.
  5. The new regulation moves power from the Member States to the Commission. The only role stated in the text for Member States is that they will assist the Commission in supervising the inspection bodies. The new regulation also transfers a lot of work away from the Member States by closing the importer derogation route that in the past resulted in a huge workload on many Member States.