. . . . . Market Research – Eastern Europe
Tropical fruit in the Czech Republic ...... Proexport – Colombia Equipo de Trabajo Dirección de Información Comercial Jorge Luis Gutiérrez – Director Fernando Piñeros – Subdirector Proyectos Especiales Bibiana Gutiérrez – Analista de Inteligencia de Mercados
[email protected] www.proexport.gov.co www.proexport.com.co
Calle 28 No. 13ª – 15, Piso 35 Tel: (571) 5600100 Fax: (571) 5600118 Bogotá, Colombia
GRUPO CONSULTOR EUNITE, Nederland
Todos los derechos reservados. Ni la totalidad ni parte de este documento puede reproducirse o transmitirse por ningún procedimiento electrónico o mecánico, incluyendo fotocopias, impresión o grabación.
Estimado Empresario:
La búsqueda de acuerdos comerciales que nos permitan como país ampliar los escenarios y mercados de exportación, nos reta como PROEXPORT a apoyar en forma directa a los empresarios en sus iniciativas exportadoras, ofreciendo servicios dentro de un modelo del gestión comercial y compartiendo un conocimiento más detallado sobre los mercados y sus oportunidades.
Para lograr lo anterior, PROEXPORT, con inversión de recursos propios y de cooperación técnica no-reembolsables del BID-FOMIN, emprendió una labor de recolección y análisis de información de primera mano en los principales mercados de interés a través de la contratación de consultorías internacionales especializadas en investigaciones de mercados. Los resultados de estos trabajos permitieron analizar y conocer la dinámica comercial de los sectores en los cuales existe un potencial para nuestras exportaciones, así como detallar aspectos de competitividad, información valiosa para la orientación de las iniciativas exportadoras de nuestros empresarios.
La información que contiene este estudio, sobre la dinámica del sector, la demanda y consumo, la situación competitiva de los productos, estructura y características de la comercialización y logística de acceso al mercado, es una contribución e invitación a profundizar y conocer aspectos que nos permitan avanzar en la realización de negocios en escenarios internacionales.
Cordialmente,
Luis Guillermo Plata P. Presidente PROEXPORT
Contents
1. Introduction...... 7 1.1 Introduction...... 7 1.2 Methodology...... 7 2. General sector data...... 9 2.1 Current market developments within the specified sector...... 9 2.2 Sector’s participation in total GDP...... 10 2.3 Sector’s participation in employment...... 12 2.4 Developments in production...... 13 2.5 Sales-, import- and export activities ...... 14 2.6 Available data about the sub-sectors ...... 20 2.7 Recommendations ...... 22 3. Market composition and characteristics ...... 23 3.1 Market size ...... 23 3.2 Analysis of the apparent consumption dynamics ...... 24 3.3 Governmental plans and programs ...... 28 3.4 Demand in the market ...... 28 3.5 Recommendations ...... 29 4. Competition analysis ...... 31 4.1 Main trademarks available in the market...... 31 4.2 Features of the commercialized products...... 32 4.3 Marketing and advertising strategies...... 32 4.4 Participation in the market and segments that are served ...... 34 4.5 Quality of the product ...... 36 4.6. Expansion plans ...... 39 4.7 Pricing strategy...... 39 4.8 Segmentation of enterprises by sectors and its categorization ...... 42 4.9 Recommendations ...... 42 5. Distribution channels ...... 43 5.1 Distribution channels ...... 43 6. Commercial Access Guide ...... 49 6.1 Preferential tariffs ...... 49 6.2 Tariffs imposed by major competitors...... 50 6.3 Norms of origin ...... 50 6.4 Barriers...... 52 6.5 Licences ...... 53 6.6 Quotas...... 56 6.7 Approvals & 6.8 Technical standards...... 57 6.9 Packaging...... 62 6.10 Required documentation for import ...... 66 6.11 Import modalities or regimes involved in the process...... 74 6.12 Requirements for import of samples and accompanied luggage ...... 76 6.13 Website links to rules and regulations...... 76 6.14 Flow chart of the process and related costs...... 78 6.15 Recommendations ...... 80 7. Physical Access...... 81
Proexport Colombia 5 Market Researches in Eastern Europe
7.1 Available transportation infrastructure...... 84 7.2 Identification of ports, airports, roads – border passes – railways, waterways...... 87 7.3 Description of status, operation, security, costs, distances, transportation arrangements and intercommunity customs...... 88 7.4 Identification of other handling and distribution infrastructure ...... 89 7.5 Identification of carriers that transport goods imported from Colombia...... 92 7.6 Alternatives of transport and carriers providing services from Colombia ...... 95 7.7 Modes and systems of transport used for carrying merchandises from the main competing foreign countries...... 96 7.8 International Freight or Transportation Costs...... 96 7.9 Costs of transportation from Colombia and main competing countries for the three types of cargo (loose cargo, general cargo, refrigerated cargo) in each modality of transport...... 98 7.10 Other costs involved in international physical distribution ...... 98 7.11 Physical distribution services address book...... 99 7.12 Others...... 106 8. Recommendations to the exporter ...... 107 Annexes...... 109 Annex 1: Certificate of origin form A...... 109 Annex 2: Plant health movement document...... 110 Annex 3: Phytosanitary certificate ...... 111 Annex 4: DV1 Form ...... 112 Annex 5: Single Administrative Document (SAD)...... 114 Annex 6: Photo documentation ...... 116 Annex 7: Companies Directories ...... 117
6 Proexport Colombia 1. Introduction
1.1 Introduction
The hereby-presented report was elaborated on behalf of PROEXPORT Colombia. The primary goal of this report is to provide potential Colombian exporters of fresh fruits with relevant information on the Czech fruit market.
The report contains data about specific segments of the market, its size and consumption specifics, major competitors, distribution chain, as well as practical information on import to the Czech Republic. Last but not least, profiles of potential buyers are attached.
Note: All numbers stated in this report are in either EUR or in Czech crowns (CZK). The conversion rate on 20 September 2005 is 29,37 CZK = 1 EUR and its tendency is to change in favour of the Czech crown.
1.2 Methodology
The report is conceived as a compilation of edited information from numerous sources. This report is based on a combination of primary research, including interviews with consumers and industry players, and secondary research using various sources.
The portion of statistical data was taken from relevant institutions and organizations, such as the Czech Statistical Office, Ministry of Agriculture, Czech Trade, Fruit Association, Association of Exporters and Importers of Fruit and Vegetables of the Czech Republic General Customs Directorate, Eurostat, FAOSTAT (Food and Agriculture Association of the United Nations) and others.
However, due to different periods and frequencies in which these institutions gather data of individual markets, the data available often originate from different years. For example, the official statistical survey of the year 2004 done by the Czech Statistical Office is to be closed by the end of November 2005, and published in the beginning of the next year. That is the reason why some data from the Czech Statistical Office are presented for 2003. The report contains however all the newest data available.
Other important sources of information have been Czech specialised magazines and Czech daily newspapers, both in printed or electronic version. Among them for example Zboží a prodej – magazine about FMCG and retail, Strategie –
Proexport Colombia 7 Market Researches in Eastern Europe marketing magazine, Moderní obchod – retail magazine, HospodáĜské noviny – economical daily, Marketing and Media – marketing and media magazine and others.
Part of the used data was also taken from websites, focused at researching and/or informing about the relevant agricultural, fruit and vegetable markets, such as trendmarketing.cz, www-cee-foodindustry.com, as well as websites aimed at European Union issues and regulations such as websites of the European Commission, DG Trade, EurepGAP (Euro-Retailer Produce Working Group), Foreign Agricultural Service U.S. Mission to the European Union and others.
Websites of individual companies trading with fruit and vegetables, as well as transport and logistic providers supplied other useful information. A smaller portion of materials used in the elaboration of the report was retrieved from internal resources of the Netherlands Chamber of Commerce in Prague.
8 Proexport Colombia 2. General sector data
2.1 Current market developments within the specified sector
The year 2004 was full of important events. The paramount historic step was the accession of the Czech Republic to the European Union, which not only opened a new chapter in Czech history, but also brought new opportunities and possibilities to Czech and foreign businessmen. It is more than evident that the accession to the EU mostly affects agriculture and food-processing.
Today, trade of agricultural commodities and foodstuffs is practically completely open in the European space. In this sense, according to Czech farmers, as well as their colleagues from both the EU member and non-member states, Europe is already united.
The fears that food products from abroad would avalanche the Czech market, as some Czech mass media maliciously had predicted, proved to be false. In reality, the domestic producers of primary agricultural commodities and food products have so far maintained their position as the main suppliers of the Czech market However, it is true that at present some sectors find themselves in a difficult situation. This mainly concerns vegetable and fruit growers, who are facing strong competition, especially from the new member states. On the other hand, the range of food products has been enriched after the accession to the EU with foreign products with a high level of processing. These goods include, for instance, wines, cheeses, and other dairy products. Czech consumers can now access a wider and more varied choice of food products and benefit from the cancellation of customs duties on imports between the EU member states. As was the case before entering the EU, the country continues to import some commodities that are not grown or produced in the Czech Republic, such as tropical fruit, olives, olive oil, and seafood.
Comparing the overall turnover and volume, agricultural trade grew from approx. € 1.70 billion to € 1.86 billion, i.e. 8 % increase. At the same time, the share of trade within the EU increased from 78 to 84 %, that is, from € 1.32 billion to € 1.57 billion).
The above-mentioned numbers prove that Czech agriculture was ready to enter the EU and that the accession did not cause any shock to Czech farmers or food producers.
Proexport Colombia 9 Market Researches in Eastern Europe
2.2 Sector’s participation in total GDP
In 2004, gross agricultural production in constant prices of the year 1989 reached according to ýSÚ (Czech Statistical Office) for the whole agriculture sector the amount of € 2.6 billion; in comparison with the year 2003 it rose about € 322 million CZK, which is 14,9% more. Gross vegetable production reached a total amount of € 1.3 billion in 2004, which embodies interim rise of 38,2%. Gross animal production gained € 1.3 billion in 2004, which signalizes a slight interim decline of 1,8%. The share of vegetable production on total gross agricultural production has risen by 8.5% and reached 50.3% in comparison to 2003.
Figure 2.2.1 Gross agricultural output in 1989-2004
12 0 . 0 10 8 . 6 106.1
96.7 10 0 . 0
85.0 83.0 82.0 80.9 78.1 77.3 76.8 77.4 77.8 76.1 80.0 74.3 72.8 67.2
60.0
40.0
20.0
0.0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Rok
Source: Czech Statistical Office
10 Proexport Colombia Tropical fruit in the Czech Republic
Figure 2.2.2 The participation of agriculture on GDP (in current prices)
8,00
7,55 7,50 7,32
7,00 6,67 6,51 6,50
5,99 5,94
% 6,00 5,62 5,47 5,48 5,50 5,37 5,06 5,03
5,00 4,72
4,36 4,50 4,23
4,00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Rok
Source: Ministry of Agriculture (2004)
In financial terms, the production of fruits has about a 3.5 % share on the total vegetal output of agriculture – see figure 2.2.3 below. Its share on GDP is practically negligible.
Figure 2.2.3 Share of commodities in vegetal production 2000 – 2003 in CZK million (at current prices) Commodity 2000 2001 2002 2003 Cereals (incl. seeds) 19 643 26 852 22 007 18 826 Industrial crops 10 617 13 641 11 435 10 567 Forage plants 8 402 6 481 7 370 5 264 Fresh vegetables 2 534 2 380 1 654 1 489 Potatoes (incl. seeds) 5 247 3 251 4 468 2 933 Fruits 2 301 1 701 1 708 1 539 Grapes 582 566 679 848 Total vegetable production 49 765 55 324 50 921 43 927 Source: Czech Statistical Office
Proexport Colombia 11 Market Researches in Eastern Europe
2.3 Sector’s participation in employment
Unfortunately, there are no statistics available about the fruit sector in specific, since fruit production is comparatively very low and is not followed as a separate category in statistical data. Therefore we can only present the employment in agriculture generally – see table 2.3.1.
However, the Fruit Association is associating 400 fruit growers of various types and sizes, which are together farming 10 000 hectares, which is slightly over half of the total farmed area. The total number of fruit farmers can be estimated at approximately 800 – 900.
Table 2.3.1 The number of employees in agriculture in the Czech Republic (in thousands) Indicator 2002 2003 2004 In total No of employees 4 764,90 4733,2 4706,6 No of employees 184,2 172,1 162,9 In agriculture In percentage 3,9 3,6 3,5 Source: Czech statistical office
The characteristic feature of Czech agriculture is the level of wages, which remains far from the wages in industry and the other sectors. The average nominal wage in agriculture in 2004 was € 410, which is only 73,9% of the average nominal wage in the industry branch and 71,7% of the average nominal wage in national economy. The number of employees in agriculture is slowly decreasing, while the labour productivity is increasing, as is shown by the following chart.
Table 2.3.2 Development of no. of employees, wages and labor productivity in agriculture (index 1989 = 100)
300,0 The number of employees Labour productivity 250,0 Nominal wages
200,0
150,0 %
100,0
50,0
0,0 1989 1998 1999 2000 2001 2002 2003 2004 Rok
Source: Czech Statistical Office
12 Proexport Colombia Tropical fruit in the Czech Republic
2.4 Developments in production In the Czech Republic fruits are nowadays grown at an area of approximately 19,000 hectares of intensive plantations, producing yearly on average 220,000 tonnes of fruit. Besides, another 250,000 tonnes are grown in extensive plantations and gardens.
The main fruit types are apples – approximately 140,000 tonnes are produced yearly (mainly Idared, Golden Delicious, Jonagold, Gloster, Šampion, Rubin, etc). Other important fruit types are sour cherries (approximately 10,000 tonnes per year), dark cherries, apricots, pears, peaches, plums and currants.
Fruit production from intense plantations in the 2003/2004 season rose to € 46.3 million (an interim increase of 14 %). To compare with the previous five years we can speak about a slightly above average encashment of production (+7.8%). Apples reached € 28.2 million, which epitomizes a nearly 14% rise in comparison to the previous season. From the perspective of five-year average production of apples, in 2003, the harvest was worth 5.3% more.
In comparison to 2002, reasonable growth of revenues was realized in the production of most kinds of fruit, mainly apricots, currants, plums, and peaches. A significant interim fall of revenues could be seen in strawberries, raspberries and pears. The total production revenues from fruit grown in non-intensive plantations in the season 2003/2004 reached nearly the same amount of revenues as in the previous season and added up to € 26.8 million. Apples harvest in these plantations represented € 6.6 million, which is 24% less than the previous season.
The production of vegetables and fruit after calculating the harvest of households was higher in comparison to the previous year. 322.3 thousand tonnes of vegetables (295.6 thousand tonnes in the year 2003) and 427.7 thousand tonnes of fruit (351.2 thousand tonnes in the year 2003) were harvested.
Table 2.4.1 Domestic production of fruits
Fruit 2000 2001 2002 2003 2004 Apples 339431 221164 316816 243382 153591 Pears 25183 16339 13780 9682 5647 Peaches 11197 4764 9196 9090 6604 Apricots 7445 3738 4281 14334 5782 Plums 14019 18114 19357 20626 2598 Sweet Cherries 13613 12194 10289 9474 3242 Cherries 9158 9623 18194 14853 9358 Other plums, bullaces and greengages 4261 4942 5892 8353 *
Proexport Colombia 13 Market Researches in Eastern Europe
Fruit 2000 2001 2002 2003 2004 Goose-berries 6824 4816 4091 4046 149 Currants 18089 16567 13487 13472 4654 Walnuts 6465 5445 4036 3901 202 Total (without strawberries and raspberries) 455685 317706 419419 351213 191827 Strawberries 12547 10589 10407 7545 2261 Raspberries 727 488 * * * Source: Ministry of Agriculture
2.5 Sales-, import- and export activities
Tropical (exotic) fruits are an entirely imported commodity. Import of fresh fruit to the Czech Republic has seen a continuously rising trend in the past years. In 2003, to compare with 2004, it has risen by 4 % to 417,5 tonnes and reaced a total value of € 248 million.
The highest proportion on the total amount had tropical and subtropical fruit and fruit of temperate zone, whose import in respect to the year before showed further interim progress. To other important issues of foreign trade belonged preserved fruit and fruit juices and squashes.
The structure of the total import from Colombia is presented in the following table. As noticeable, bananas are the main tropical fruit commodity imported from Colombia. Other tropical fruits imported from Colombia are not defined as a specific commodity within import statistics, due to the low share in %. Therefore, experts are not able to complement the statistics with information on other tropical fruit commodities imported from Colombia, as records this specific are simply not kept.
Table 2.5.1: The commodity structure of Czech import from Colombia in 2004 (in € thousands) Code Commodity Share in % EUR thousands
803 Bananas 69.48% 26.363 2101 Coffee extracts 18.18% 6.898 0603 Cut flowers 5.56 % 2.107 0901 Coffee 3.22 % 1.219 2607 Safety glass 2.24 % 848 Others 1.32% 451 Total 100.00% 37.886 Source: www.export.cz
14 Proexport Colombia Tropical fruit in the Czech Republic
Based on the data provided by the Czech Directorate of Customs, the import of fresh as well as processed fruits has a growing tendency – it has doubled in the past four years in volume as well as in financial terms.
Table 2.5.2 Total import of fresh and processed fruits and nuts 2000 - 2004 Period Code Commodity Netto (kg) Euro (ths.) 2000 0811 Fresh and frozen fruits and nuts 7 097 012 6 148 2000 2001 Fruits and nuts preserved by vinigar 3 907 157 1 783 2000 2006 Fruits and nuts preserved by sugar 578 046 679 2000 2008 Other processed fruits and nuts 28 128 371 20 695 Total 2000: 39 710 586 29 305 2001 0811 Fresh and frozen fruits and nuts 6 473 645 4 508 2001 2001 Fruits and nuts preserved by vinigar 6 997 826 2 831 2001 2006 Fruits and nuts preserved by sugar 678 486 711 2001 2008 Other processed fruits and nuts 33 589 950 22 934 Total 2001: 47 739 907 30 985 2002 0811 Fresh and frozen fruits and nuts 7 035 497 5 697 2002 2001 Fruits and nuts preserved by vinigar 8 385 538 3 797 2002 2006 Fruits and nuts preserved by sugar 721 262 745 2002 2008 Other processed fruits and nuts 36 941 057 26 216 Total 2002: 53 083 354 36 455 2003 0811 Fresh and frozen fruits and nuts 9 520 591 9 132 2003 2001 Fruits and nuts preserved by vinigar 8 948 614 4 506 2003 2006 Fruits and nuts preserved by sugar 1 326 586 1 466 2003 2008 Other processed fruits and nuts 46 946 530 35 608 Total 2003: 66 742 321 50 712 2004 0811 Fresh and frozen fruits and nuts 9 963 527 9 924 2004 2001 Fruits and nuts preserved by vinigar 12 362 064 6 959 2004 2006 Fruits and nuts preserved by sugar 873 617 1 199 2004 2008 Other processed fruits and nuts 47 189 895 41 470 Total 2004: 70 389 103 59 554
Source: Czech Statistical Office, General Customs Directorate
Proexport Colombia 15 Market Researches in Eastern Europe
As for the territorial structure of fresh tropical fruits, Vietnam, India and Thailand have been the main import territories for the Czech Republic in past years. These countries are suppliers above all of papaya and thamarilas (Thailand, India), and coconuts (Vietnam). Unfortunately, a closer division is not available within the customs records.
However, there is also a relatively high share of tropical fruit originating from Belgium. This has to do with the European distribution system, whereby many traders purchase fruits in European harbours (see chapter 5 – distribution channels - for more information). The main commodities traded via Belgium are oranges, bananas, pineapples, kiwi and avocados (see also chapter 3.2).
As apparent from the following table, direct import from Colombia by Czech importers is marginal.
Table 2.5.3: Territorial structure of import of fresh tropical fruits (TF) 2003 – 5/2005 Partner Netto Euro Period Commodity country (kg) (ths.) 2003 TF with a sugar content of > 13% by weight Germany 24 0 2003 TF with a sugar content of > 13% by weight Denmark 762 3,2 2003 TF with a sugar content of > 13% by weight France 60 0 2003 TF with a sugar content of > 13% by weight Thailand 568 0,8 2003 TF with a sugar content of > 13% by weight Vietnam 165 0 2003 TF with a sugar content of <= 13% by weight Germany 3 370 6,5 2003 TF with a sugar content of <= 13% by weight Denmark 150 0,8 2003 TF with a sugar content of <= 13% by weight Thailand 114 0,8 2003 TF not containing added sugar Belgium 7 940 16,2 2003 TF not containing added sugar India 1 200 1,6 2003 TF not containing added sugar Italy 12 0 2003 TF not containing added sugar Mexico 7 095 9,7 2003 TF not containing added sugar Thailand 726 0,8 2003 TF not containing added sugar Vietnam 12 220 13,0 Total 34 406 53,6 2003 2004 TF with a sugar content of > 13% by weight Brazil 2 0 2004 TF with a sugar content of > 13% by weight Germany 8 0 2004 TF with a sugar content of > 13% by weight Denmark 318 1,6 2004 TF with a sugar content of > 13% by weight Egypt 1 0 2004 TF with a sugar content of > 13% by weight Poland 264 1,6 2004 TF with a sugar content of > 13% by weight Turkey 9 0
16 Proexport Colombia Tropical fruit in the Czech Republic
Partner Netto Euro Period Commodity country (kg) (ths.) 2004 TF with a sugar content of <= 13% by weight Germany 450 0,81 2004 TF with a sugar content of <= 13% by weight Denmark 12 0 2004 TF with a sugar content of <= 13% by weight Netherlands 11 0 2004 TF with a sugar content of <= 13% by weight Slovakia 70 0 2004 TF not containing added sugar Belgium 13 140 23,6 2004 TF not containing added sugar Brazil 689 1 2004 TF not containing added sugar France 13 0 2004 TF not containing added sugar India 23 000 23,6 2004 TF not containing added sugar Netherlands 4 615 5,7 2004 TF not containing added sugar Thailand 18 660 17,1 2004 TF not containing added sugar Vietnam 2 970 4,1 Total 65 232 79,7 2004 2005 TF with a sugar content of > 13% by weight Brazil 25 0 2005 TF with a sugar content of > 13% by weight China 2 0 TF with a sugar content of > 13% by 2005 Colombia 4 0 weight 2005 TF with a sugar content of > 13% by weight Spain 2 0 2005 TF with a sugar content of > 13% by weight France 22 0 2005 TF with a sugar content of > 13% by weight Israel 2 0 2005 TF with a sugar content of > 13% by weight Poland 3 0 2005 TF with a sugar content of > 13% by weight Vietnam 5 0 2005 TF with a sugar content of > 13% by weight South Africa 3 0 2005 TF with a sugar content of <= 13% by weight Netherlands 12 0 2005 TF with a sugar content of <= 13% by weight Slovakia 300 0,8 2005 TF with a sugar content of <= 13% by weight South Africa 4 0 2005 TF not containing added sugar Belgium 7740 13,0 2005 TF not containing added sugar Brazil 390 4,9 2005 TF not containing added sugar Chile 600 4,9 2005 TF not containing added sugar Colombia 3 0 2005 TF not containing added sugar France 675 0,8 2005 TF not containing added sugar Netherlands 1211 1,6 Total 11 003 26,8 2005
Source: Czech Statistical Office, General Customs Directorate
Proexport Colombia 17 Market Researches in Eastern Europe
In the commodity of processed tropical fruit (by vinegar, sugar or alcohol), Thailand is the leading importing territory, accounting for 56% of all imports (in 2004).
Table 2.5.4 Territorial structure of import of processed tropical fruits (TF) 2003 – 5/2005
Partner Netto Euro Period Commodity country (kg) (ths.) 2003 TF prepared or preserved by vinegar Thailand 523 0,8 2003 TF prepared or preserved by vinegar Vietnam 6 171 0,8 2003 TF preserved by sugar of > 13% by weight China 7 000 16,3 2003 TF preserved by sugar of > 13% by weight Germany 1 830 3,3 2003 TF preserved by sugar of > 13% by weight Greece 56 0 2003 TF preserved by sugar of > 13% by weight India 38 250 25,2 2003 TF preserved by sugar of > 13% by weight Netherlands 200 0,8 2003 TF preserved by sugar of > 13% by weight Philippines 4 556 5,7 2003 TF preserved by sugar of > 13% by weight Thailand 284 188 308 2003 TF preserved by sugar of > 13% by weight Vietnam 200 0 2003 TF preserved by sugar of <= 13% by weight Thailand 1 627 2,4 Total 344 601 363,4 2003 2004 TF prepared or preserved by vinegar Slovakia 962 0,8 2004 TF prepared or preserved by vinegar Thailand 238 0 2004 TF preserved by sugar of > 13% by weight China 5 000 9,8 2004 TF preserved by sugar of > 13% by weight Germany 200 0,8 2004 TF preserved by sugar of > 13% by weight Spain 67 0 2004 TF preserved by sugar of > 13% by weight Greece 86 725 127,6 2004 TF preserved by sugar of > 13% by weight India 42 630 31,7 2004 TF preserved by sugar of > 13% by weight Italy 117 0 2004 TF preserved by sugar of > 13% by weight Philippines 360 0,8 2004 TF preserved by sugar of > 13% by weight Thailand 191 621 228 2004 TF preserved by sugar of > 13% by weight Vietnam 900 0 2004 TF preserved by sugar of <= 13% by weight Mexico 294 0,8
18 Proexport Colombia Tropical fruit in the Czech Republic
Partner Netto Euro Period Commodity country (kg) (ths.) 2004 TF preserved by sugar of <= 13% by weight Thailand 8 405 0,8 2004 TF preserved by alcohol Spain 14 0 Total 337 533 403,3 2004 2005 TF prepared or preserved by vinegar Slovakia 369 0 2005 TF preserved by sugar of > 13% by weight China 1 000 1,6 2005 TF preserved by sugar of > 13% by weight Greece 17 010 24,4 2005 TF preserved by sugar of > 13% by weight India 16 500 12,2 2005 TF preserved by sugar of > 13% by weight Thailand 62 264 81,3 2005 TF preserved by sugar of > 13% by weight Vietnam 150 0 2005 TF preserved by sugar of <= 13% by weight Vietnam 3 790 1,6 2005 TF preserved by alcohol Spain 11 0 Total 101 094 122,0 2005
Source: Czech Statistical Office, General Customs Directorate
Re-exports
Increasing internationalization, which is also particularly the case in the European Union, has an impact on the fruit and vegetable trade. A total of nearly € 23.2 billion of fresh fruit and vegetables was imported by EU member countries in 2002, whereas exports amounted to € 18.7 billion in the same year. The major share of imports and exports was transported to other destinations, partly as re- exports, partly as transit trade. In the case of re-export, the products are declared at the national Customs, whereas for transit trade the products enter the country, but there is no formal declaration at Customs. The sharp growth in re-exports and transit trade for fruit and vegetables can partly be attributed to the new markets, which have opened up in Eastern Europe, such as Russia, the Czech Republic, Slovenia and Slovakia.
Proexport Colombia 19 Market Researches in Eastern Europe
Table 2.5.5 Export and Import of fresh and dry tropical and subtropical fruit in 2003 Data in tonnes Type of fruit export import balance Fresh bananas 4129 111415 -107286 Dry bananas 3 230 -227 Fresh and dry dates 4 603 -599 Fresh and dry figs 32 883 -851 Fresh and dry pineapples 42 3169 -3127 Fresh and dry avocados 15 284 -269 Fresh and dry guavas, mangos and mangosteens 40 1649 -1609 Fresh and dry oranges 836 61959 -61123 Clementines, monreales, satsumas, mandarines, wilkings, tangerines and other lemon hybrids 946 48261 -47315 Fresh and dry lemons and limets 390 20771 -20381 Fresh and dry grapefruits 360 9997 -9637 Other lemon fruit 18 50 -32 Fresh Papayas 2 49 -47 Fresh Kiwi 121 7402 -7281 Durians 0 0 0 Fresh tamarindes, litchi, jackfruit, sapotas, starfruit 2 71 -69 TOTAL Fresh and Dry 2003 6940 266793 -259853 Other tropical and subtropical fruit 114 1213 -1099 Source: Ministry of Agriculture, General Directorate of Customs
2.6 Available data about the sub-sectors The fresh fruit market can be split into two main categories - fruits from temperate areas, available from domestic sources, and tropical fruits, that are solely imported.
Table 2.6.1: Division of fresh fruit categories
Fresh Fruit Temperate Tropical and Subtropical (incl. exotics) apples/pears bananas grapes citrus fruit deciduous fruit (peaches, nectarines, apricots, cherries, etc.) pineapples berries (strawberries, raspberries, blueberries, etc.) avocados melons/water melons mangoes etc. lychees papayas others: passion fruits, carambolas, durian, dates, figs, etc. Source: Association of Exporters and Importers of Fruit and Vegetables
20 Proexport Colombia Tropical fruit in the Czech Republic
The temperate fruit assortment offered in the Czech Republic consists of products, which are not, or only occasionally, supplied from outside of Europe. The main imported product group within this category consists of citrus fruit. The citrus assortment on the European Union market consists of numerous varieties of oranges, mandarins, grapefruit and lemons. Many new citrus fruit varieties have been introduced, with great appreciation for the so-called “easy-peelers”. In the case of grapefruit, the red and pink varieties are the most popular in the increasing market for the consumption of grapefruit.
In comparison to the Czech Republic on the Western European market an extremely varied number of tropical fruits has become reasonably well known. They are regarded as special products because of their –seen trough European eyes- exotic character.
Due to a quick and successful introduction on EU markets, some of these products can hardly be considered as exotics anymore. This can be seen as a positive development for exporters in developing countries. Consumers have become accustomed to these products, which have now gained a common place in the shops and on shopping lists, such as pineapples, bananas, kiwi fruits, avocados and mangoes. On the other hand, there are many other exotic varieties which are less, or only vaguely, known to the consumer. However, the supply as well as the number of supplying countries of exotics is still increasing.
Off-season products are: grapes, melons, peaches, nectarines etc. Off-season products are these products that are transported to the country in winter period. In addition, during the spring/summer period large quantities of citrus fruit are imported into the market from the southern hemisphere. Therefore, from a European point of view, citrus fruit also belongs to the off-season assortment. However, due to improved growing techniques and improvement in the storage life of the products is getting longer and the off-season period, in which the Czech Republic is highly dependent on suppliers from outside Europe is becoming shorter. By contrast, the demand in this period is increasing.
Consumption of organic products has basically just started in some Eastern European countries (e.g. Hungary, Slovenia and the Czech Republic). However, sales in these markets are almost negligible in comparison with the former EU- memberstates, according to the Food and Agriculture Organization of the United Nations. No other actual comparisons regarding the consumption of fruits in the Czech Republic, in comparison to other EU markets could be found and statistics differ in parameters, making it difficult to draw conclusions from the independent national statistics.
Proexport Colombia 21 Market Researches in Eastern Europe
2.7 Recommendations
The production of fruits is a traditional and important part of Czech agriculture. Fruits are grown by farms, as well as privately in peoples private orchards and gardens. In the same time, exotic fruits are rather newly available products, from which the majority appeared on the market only fifteen years ago.
Still, offered fruits are not always familiar not only to final consumers, but also to retail shops. However, although the consumption of fresh fruits in the Czech Republic is still below the European average, the popularity and sales of exotic fruits are slowly growing among direct endusers and well as within the ever developing horeca sector. Tropical fruits, such as bananas, oranges, mandarines, pineapples, grapefruit, and mangos are more commonly available now in retail chains. Therefore, generally, there is a potential of this market for the future, especially when the Czech market is considered as part of the export territory of Central and Eastern Europe.
There is an all-year round demand for many products (such as e.g. bananas or citrus fruit) which domestic producers can only satisfy in part or not at all. The “off-season” range therefore offers an opportunity for exporting during seasons in which they are not available due to the local climate.
22 Proexport Colombia 3. Market composition and characteristics
3.1 Market size
With the entrance to the European Union on 1st May 2004, the Czech Republic became a part of the unified market of 460 million inhabitants. Last season 2003/2004 could be seen from the fruit trade and culture point of view as a below standard one. Foreign trade with fresh and dry fruit balance is short. In 2003, the balance of trade deficit was € 228 million. In last years, fresh fruit import has continuously risen. In 2003, compared with 2002, the import rose by 4% and reached 417.5 thousand tonnes with a total value of € 248 million. The most important incoming commodities were topical and subtropical fruit, and fruit of temperate zone. Their import experienced further interim progress.
Table 3.1.1 Per capita supply of fresh fruit and vegetables in the new EU member states, 2000-2002, kg per year
Fresh Fruit Country 2000 2001 2002 Slovenia 153.5 104.3 153.1 Cyprus 131.8 116.4 120.6 Malta 62.7 66.4 105.6 Czech Republic 69.5 67.0 75.1 Estonia 81.4 78.2 71.3 Hungary 83.4 62.1 64.9 Latvia 61.3 60.3 63.6 Lithuania 70.2 70.4 62.4 Slovakia 68.7 55.8 55.0 Poland 48.6 57.4 49.3 Source: FAOSTAT, 2004
Table 3.1.2 Fresh fruit consumption in the Czech Republic per capita 2002 2003 Fruit in total 73,5 72,5 Southern fruit 26,9 27 Fruit of temperate zone 46,6 45,5 Source: Ministry of Agriculture
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3.2 Analysis of the apparent consumption dynamics
As already mentioned, tropical fruits are a purely imported commodity in the Czech market. Among the ten new EU member countries, Poland and the Czech Republic are the leading fresh fruit importers.
Apparent consumption dynamics of tropical fruit is presented below. The table specifies the amount of specific tropical fruits imported into and exported from the Czech Republic in 2004. Apparent consumption = production + import – export. Since there is no local produce of tropical fruit, the Czech Republic’s apparent consumption is revealed by extracting the export from the import quantities.
Table 3.2.1 Tropical fruit import in 2003 in tonnes Domestic Domestic Type of fruit production Import Export consumption Fresh bananas 0 111.415 4.129 107.286 Dry bananas 0 230 3 227 Fresh and dry dates 0 603 4 599 Fresh and dry figs 0 883 32 851 Fresh and dry pineapples 0 3.169 42 3.127 Fresh and dry avocados 0 284 15 269 Fresh and dry guavas, mangos and mangosteens 0 1.649 40 1.609 Fresh and dry oranges 0 61.959 836 61.123 Clementines, monreales, satsumas, mandarines, wilkings, tangerines and other lemon hybrids 0 48.261 946 47.315 Fresh and dry lemons and limets 0 20.771 390 20.381 Fresh and dry grapefruits 0 9.997 360 9.637 Other lemon fruit 0 50 18 32 Fresh Papayas 0 49 2 47 Fresh Kiwi 0 7.402 121 7.281 Durians 0 0 0 Fresh tamarindes, litchi, jackfruit, sapotas, starfruit 0 71 2 69 TOTAL Fresh and Dry 2003 0 266.793 6.940 259.853 Other tropical and subtropical fruit1 0 1.213 114 1.099 Source: Ministry of Agriculture, General Directorate of Customs
1 Unfortunately, it is not possible to specify specific types of fruits within this category, since one general customs category is applied to various types of tropical fruits in which no further types are distinguished.
24 Proexport Colombia Tropical fruit in the Czech Republic
Table 3.2.2 Import of fresh fruits to new EU member countries, 2003, value in Euro and thousand tonnes
900 800 700 600 Imports of Fresh Fruit 500 Value 400 Imports of Fresh Fruit Volume 300 200 100 0
ic ry ia nd bl nia tvia nia rus ga a to p ola pu La s Malta P e lovakialoven thu E Cy Hun S S Li ch R e Cz
Source: Eurostat, 2004
Melons
Melons are imported from Hungary, Slovak Republic and Spain in total amount of 80 thousand tonnes per year.
Bananas
Bananas are imported into the Czech market from Colombia, Panama and Ecuador in the total amount of 150 thousand tonnes a year. Bananas are traditionally, the leading fresh fruit product imported into the European Union. In the EU the banana imports remains fairly stable in both terms of value and volume, amounting to € 3.1 billion / 4.9 million tonnes in 2002. Banana imports enter the European Union markets directly as well as indirectly via Belgium, France and The Netherlands.
Citrus fruits
Oranges are to the Czech Republic imported mainly from Spain, Greece, and SAR in total amount of 59 thousand tonnes a year.
On the European level, when grouped together, citrus fruit forms, next to bananas, the leading import product group in both terms of value and volume, with imports by EU member countries amounting to nearly € 3.1 billion / 5.0 million tonnes in 2002.
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The leading EU importers of citrus fruit are Germany (22%), France (22%), the United Kingdom (15%), and the Netherlands (13%), who are selling it further to local markets. Thus, although the Netherlands is listed as a leading supplier of citrus fruit to the other EU member countries, this only concerns re-exports, which are originally supplied by other countries. This also applies to Belgium as far as the supply of oranges is concerned.
Kiwis, pineapples and avocados
The European import of kiwi fruit amounted to € 560 million in 2002, representing an increase of more than 20 percent since 2000. The leading EU importer of kiwi fruits is Germany, accounting for 21 percent of value imports in 2002, followed by Belgium (19%), Spain (18%) and the Netherlands (10%).
Other relatively significant imported exotics are pineapples and avocados. The pineapple import by EU member countries increased almost 50% in value and 25% in volume, amounting to € 543 million / 594 thousand tonnes in 2000/2002.
In 2002, Belgium was the leading EU importer of pineapples, accounting for 21% of the total imported value, followed by France (19%), Italy (16%), Germany (13%) and Spain (10%). During the same period, avocado imports increased by 10% in value and by 2 percent in volume, reaching € 266 million / 202 thousand tonnes in 2002. The major EU importer of avocados is, by far, France, accounting for half of avocado imports (in value) in 2002, followed by the United Kingdom (15%) and the Netherlands (13%).
Mangoes, guavas
Mango and guava imports by EU member countries have increased during the past years, both in terms of value and volume, while suppliers around the world are stepping up production. The world’s top supplying countries (in Latin America and Africa) have benefited from the shift towards sea freight, delivering the fruit in the right condition.
The Netherlands is, by far, the leading EU importer of mangoes and guavas, accounting for about a third of the total imported value in 2002, followed by France (15%), Germany (14%), and the United Kingdom (12%).
Tamarinds, lychees, papayas, passion fruit and figs
Although the imported quantities of tamarinds, lychees, papayas, passion fruit and figs are relatively small, these product groups can be interesting for developing country exporters. Not only is the European consumer becoming more familiar with these tropical fruits, thus raising consumption, but most of EU imports of these products is supplied by developing countries.
26 Proexport Colombia Tropical fruit in the Czech Republic
In 2002, EU imports of tamarinds and lychees amounted to some € 74.5 million / 35.5 thousand tonnes, of which the lion’s share (about 70 percent) was imported from developing countries. The remainder consisted mainly of re-exports (primarily from France and The Netherlands), although Spain, a minor producer, also exports to other EU member countries.
In 2002, France was the largest EU importer of tamarinds and lychees, accounting for 36% of total imported value. Most of the remaining imports went to the Netherlands, the United Kingdom, Italy and Germany.
In 2002, papaya imports by EU member countries amounted to € 55.8 million / 32.8 thousand tonnes, representing an increase of almost 50% in value and 65% in volume since 2000. About 75% of the imported value originated in developing countries. The main supplying countries are Panama, Morocco, Costa Rica, Israel and Brazil. The leading EU importers of papayas are the United Kingdom (24%), The Netherlands (23%), Germany (20%) and Portugal (10%).
EU imports of passion fruit amounted to some € 30.7 million / 10.7 thousand tonnes in 2002, of which almost 60% was imported from developing countries. The main supplying countries were Colombia, Israel and Madagascar. In the same year, the leading EU destination of passion fruit consignments was the Netherlands (mostly for re-exports), accounting for 37 percent of total EU passion fruit imports (in value), followed by Germany (21%) and France (15%).
In 2002, fresh fig imports by EU member countries amounted to € 29.8 million /19.2 thousand tonnes. About 45 percent of the exported value was directly sourced from developing countries, while a large part was re-exported by other EU member countries (mainly the Netherlands). The leading EU destinations are France (30%), Austria (17%), Germany (16%), the Netherlands (13%), and the United Kingdom (10%).
Pitahaya, physalis
Pitahaya and physalis are imported to the Czech Republic by all four main importers as mentiontioned in chapter 4.4. According to representatives, fruits are purchased in the European stock market in harbors (mainly Germany, Netherlands and Belgium), while the price and actual quality, not origin, is playing the decisive role. Pitahayas in their current offer originate from Kenya, Vietnam or Colombia and physalis from Spain and Zimbabwe. There is no specific seasonality other for these rather unusual fruits, except of seasonality derived availability harvest times. The consumption of these fruits is very low, reaching in total fact “a few tonnes” a year only. Consumers stem almost solely from the Horeca sector - restaurants and bars of higher quality. The direct purchases by final customers is negligible (often foreigners), since the majority of population never heard of these fruits, nor can afford them for common use.
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3.3 Governmental plans and programs
The governmental programs aimed at fruit production are only concerned with the support of locally produced fruits. There are no plans or programs aimed at the tropical fruit market.
3.4 Demand in the market
The general offer of fruit and vegetables of less known and exotic kinds has significantly been improving in the last fifteen years in the Czech Republic.
Nevertheless, Czech customers are not familiar with most of the exotic fruits and do not ask for them in supermarkets etc. If the products are offered, only a limited number of customers buy them and they usually take the price of the product as the decisive parameter. This is the main reason why exotic fruit is not generally offered and if offered then of a lower quality to get a reasonable price. The widest range of products could be found in French specialized greengrocers, but these products are usually sold for very high prices. One of the very few retails specialized in tropical fruit is for example “Fruit de France”2
The consumption of fruit and vegetables calculated per capita in the Czech Republic still does not meet standard consumption of the other European countries. The consumption of fruit is continuously rising and is expected to rise even in the near future. Reasons of this development could be seen also in a change of consumption habits of Czechs. The old generation did not use to eat vegetables and fruit as such. Young Czechs understand the need to change their eating habits and today, they consume salads also as a main dish.
The consumption of tropical fruit for a person in 2002 increased in comparison with 2001 to 3,4 kg; a 4,8% higher consumption. In contrast with the consumption of southern fruit, consumption of fruit of temperate zone rose significantly (+7,4 %). The majority share of the total consumption of fruit is owned by the apple market. Their consumption has continued its raising trend for numerous years now. For Czech citizens tropical fruit still represents a more expensive kind of fruit, which they are not used to buy in large quantities and which they mainly use as ingredients for salads, deserts, ice-creams and drinks and sometimes even to relish ham, chicken and some other kinds of meat.
2 For more information, please see www.fdf.cz
28 Proexport Colombia Tropical fruit in the Czech Republic
3.5 Recommendations
The most important condition to realise for a Colombian exporter is the fact, that the demand in the Czech market is still so low, that there is a very little chance that local partners will be interested in direct imports from Colombia. Given the nature of the trade with fresh tropical and exotic fruits in the European Union, which means the habit of large European importers to buy and sell fruits at stock markets to local traders, Colombian exporters have to consider the market on the pan-European level. Therefore, it is in fact at current stage only possible to influence the Czech market indirectly – by creating a demand for Colombian fruits among the Czech consumers as well as the local traders.
Also, it is neccessary to bear in mind the differences existing in demand for individual commodities. For example, banana is a well known and popular fruit with a large consumption. In the same time, pitahaya or physalis are competely unknown terms to an average consumer, though these are increasingly available in supermarkets and mostly purchased by the Horeca sector.
Therefore, the trader should carefully examine the market and decide which commodity shall be offered to the market preferentially. Which type of exotic fruit has a lower risk of failure. At the same time, a cooperation with local partners to work on “educating” customers about the assortment, qualities and use of offered tropical fruits, could be a wise plan.
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4. Competition analysis
4.1 Main trademarks available in the market
Although some of the tropical fruits bear a certain trademark, the awareness of their fruit brands is extremely low with Czech shoppers. According to a conducted research the vast majority of consumers finds it difficult to recall any brands of fruits they purchased. The most frequently cited brands were Chiquita and Dole for bananas.
Despite the fact that shops sometimes offer different brands in their shops, the main decisive factor is, and will be, the price of the product. Next to Chiquita, which is the only advertised brand, these fruit brands were identified in the retail shops: Dole, Fyffes, Bonita, D´OR, Casanova, OR, Andino, Namdhari’s Fresh, Troppy, CZ Fruit (Czech brand).
Real competition among particular brands aimed at consumers does not exist, but there is rather a competition among individual traders for supplies to retail, mainly for bananas ans citrus fruits. More information about the biggest players on the market can be found in chapter 4.
With the opening of the European market, this competition is no longer limited to the local market, but is also apparent on a European scale. This is apparent especially in the import of bananas, since import limits and duty tariffs in the Czech Republic changed dramatically after the accession to the European Union. The situation became more favorable to big multinational companies. The Czech Republic did not discuss after-access exceptions for the import of bananas and today faces strict import quotas.
European Union placed Czech importers on the list of “untraditional importers” of bananas. This means that according to the European regulation, they cannot import more than 17% of bananas to the European Union. If a company exceeds the limit and imports more it has to pay a very high customs duty. It is precisely a duty of € 680 for each additional ton. This is unacceptable for the majority of importers.
The current situation on the Czech market is a result of the so-called banana wars between the European Union and the United States, which the European Union lost. The European Union was forced to cancel preferential customs procedures for its previous colonies and accept a unified duty; 75 euro for a ton of bananas. Big importers as Del Monte, Dole or Chiquita where simultaneously favored because they obtained a majority license for the European market. This was a big pity for other importers, the non-traditional importers (today also all
Proexport Colombia 31 Market Researches in Eastern Europe
Czech importers). Czech importers are entitled to bring into the Union about 10 trucks of bananas a week. Because demand for bananas is much higher (about 120 trucks a week for the Czech Republic), Czech importers are forced to buy bananas by big importers, who have enough licenses.
This situation will not last long. In 2006 the temporary proceeding of the Union should be called off. Then all quotas will be cancelled and a new system of import duty in compliance with WTO rules will be in place (the so called “Tariff ONLY”). This system is currently being discussed.
4.2 Features of the commercialized products
There are no specific unstandard features regarding packaging or labelling of products in the Czech market. The specific issue about this market is however the fact, that majority of exotic fruits are thanks to its high prices sold by pieces rather than kilograms.
4.3 Marketing and advertising strategies
The marketing activities can be divided in two categories – marketing focused on the tropical fruit as commodity, and marketing focused on promoting a certain fruit brand.
The majority of marketing activities are focused on the first category. These include mostly educational texts, introducing the fruits, and presenting the information of their origin and taste and contained substances, how they should look, how to consume them or use them for cooking. This is included mostly in written form, mainly as articles in specialised magazines or at the Internet websites (e.g. the website of fruit trader www.taroko.cz, or at www.volny.cz/subtropicke.rostliny)
Specialised magazines are for example:
Revue pro Hotel a Restaurant (Review for Hotel and Restaurant) This is a specialized journal about the Horeca sector and can be read not only by professionals but also by all those who are interested in everything concerning square meal, drinks and smoking. Publisher: GastroPress, s. r. o., ýelakovského sady 8, 120 00 Praha 2
Food Service A specialized journal for management and employees of hotels, restaurants and public catering. Publisher: ýeské a slovenské odborné nakladatelství, s.r.o., Drtinova 10, 150 00 Praha 5
32 Proexport Colombia Tropical fruit in the Czech Republic
Obchod*Kontakt*Marketing (Trade*Contact*Marketing) Ministry of Industry and Trade monthly for Czech exporters and importers. Publisher: QplusQ, s. r. o., Myslíkova 25, 110 00 Praha 1
Obchodník (Businessman) Journal for entrepreneurship and strategies in business. Publisher: ECONOMIA a.s., Dobrovského 25, 170 55 Praha 7
GastroPlus Journal for gastronomy sector Publisher: Gastro Plus, Kounicova 10, 602 00 Brno
Beverage and Gastro Journal focused on beverages and food sector Publisher: Wagner Press, s. r. o., Jana Masaryka 28/281, 120 00 Praha 2
Horeka Hospitality business news Publisher: Atoz Marketing Services, Holeþkova 29, 150 95 Praha 5-Smíchov
Common is the in-store tasting of tropical fruits directly in retail outlets (mostly supermarkets and hypermarkets) in order to encourage customers to taste unknown fruit and motivate them for the purchase. This is, however, not yet a matter of planned marketing campaigns of retail chains and wholesales, but merely a common way to utilize the unsold pieces of fruits with a short consumption period. The volume of sales for exotic tropical fruits is so little, that it is not considered an effective investment in marketing activities – retail chains rather finance sales of products with a larger turnover and higher margin. The instore tasting is used occasionally at Carrefour (www.carrefour.cz), Interspar (www.interspar.cz) and Ahold (www.ahold.cz).
The brand promotion is currently almost non-existent, with the exception of current TV commercial campaigns for Chiquita bananas (TV Nova and CT1). The company Hortim, which is a part of Fyffes Plc., has launched a local short term in-store promotion of Fyffes brand in 2003 (see the attachment). Next to Chiquita, no brand promotion activity was recorded. We believe this type of promotion is still to come as a second step after getting the market acquainted to rather new and expensive products.
An interesting insight into the Czech food market can come from a visit or participation at a specialized trade-fair. The most important agricultural and food fair organized in the Czech Republic biannually is the International Food Fair SALIMA in Brno (www.bvv.cz/salima).
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SALIMA, provides the overview of the food industry in Central and Eastern Europe, as well as of the current trends and business opportunities in the industry. Its jubilee 25th year will reflect the current inclination to modern products supporting healthy lifestyle, as well as to convenience foods and meals, just as to the ever more frequent preference of quality to quantity. The statistics relating to the Czech market confirm the increase in the consumption of soft beverages, frozen products, convenience food, poultry, food for children and infants, exotic fruit, legumes and beans, as well as vegetable fats and oils. Just as in other advanced countries, the states of Central and Eastern Europe too show an increased interest in the so-called functional food (food containing substances beneficial for the bodily functions), in brand food and beverages, and specialty foods from all over the world.
The leading topic of this year’s SALIMA will be “safe food”, but many sessions will focus also on the current situation of food industry in the Czech Republic and the whole of Central Europe after the enlargement of the EU, as well as the question of the newly-accessing countries – Bulgaria, Romania, and Croatia – which are to join in 2007.
The main scope of the SALIMA fair is food, ready-made and frozen meals, beverages (alcoholic, non-alcoholic, coffee, and tea), machines and equipment for food processing, as well as specialized packaging means and technologies.
Salima is organized together with: x INTECO - 22nd International Fair of Equipment for Retail Trade, Hotels and Catering Facilities x MBK - 3rd International Milling Industry, Bakery and Confectionery Fair x VINEX 2006 - 12th International Wine Fair
The closest date for this event is 7. - 10. 3. 2006.
4.4 Participation in the market and segments that are served
To the largest local companies, active as importers, traders and distributors of fruits, belong ýerozfrucht, VVISS, Hortim and Abasto. All these companies have exotic fruits (granadilla, passion fruit, physalis and pitahaya) in their assortment.
ýerozfrucht Address: Pražská 298, 250 81 Nehvizdy Tel.: +420-283 001 111 Fax: +420-283 001 222 E-mail: [email protected] Website: www.ceroz.com
34 Proexport Colombia Tropical fruit in the Czech Republic
Note: Ceroz has been operating in the Czech market since 1991. The main business activity is the import of a full range of fresh fruit, vegetables and dried produce. Company is and importer of ¼ of bananas on the Czech market.
In addition to the branches wtih warehouses in the Czech Republic (Nehvizdy, Prague-Lipence, Pilsen, Hradec Králové, Brno, Uherské HradištČ, Valašské MeziĜíþí and Karviná), they have also established branches in several other European countries (Slovakia, Spain and Poland).
VVISS CR Address: Kolmá 5, 190 00 Praha 9 Tel.: +420-283089999 Fax: +420-283089400 E-mail: [email protected] Website: www.vviss.cz Note: Distribution of a wide range of fruits, vegetables (of EU origin) and our own production. Import of fruits from South Africa and Central and South America, especially outside the main European production season. The company has branches also in Hungary, Poland and Slovakia. The Czech warehouses are located in Brno, ýeská Skalice, ýeský TƟšín, Prague, PlzeĖ and Žernov. Furthermore, theres is one warehouse located in Prešov, Slovakia.
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HORTIM Address: Kšírova 242, 619 00 Brno Tel.: +420 543 522 222 Fax: +420 543 522 333 E-mail: [email protected] Website: www.hortim.cz Note: Hortim-International has become a part of Fyffes Plc., one of the leading distributors of fresh produce throughout Europe. The warehouses are located in Karlovy Vary, Prague, Ostrava and in Bratislava and Košice in Slovakia.
ABASTO Address: Karlštejnská 18, 252 29 Lety u DobĜichovic Tel.: +420- 257 713 034 Fax: +420-257112203 E-mail: [email protected] Website: www.abasto.cz Note: The company imports and sells fruits, vegetables, dairy and other food products to customers in Prague.
4.5 Quality of the product
Tropical fruits are not widely available in the Czech Republic. They can only be found in rather large hypermarkets with a large diversity of fruits or in small shops that sell oriental food. This has mainly to do with the fact that the fruits are so expensive that they are not often bought as a simple snack, but more as a very fancy way to light up a dish or dessert.
They look, feel and smell the same as they do in Colombia. They are usually brightly coloured and taste either sweet or sour and sometimes a bit bitter.
36 Proexport Colombia Tropical fruit in the Czech Republic
Figure 4.51 Fruit display in hypermarket
Source: Own archives
They are individually packed or in small plastic or cardboard boxes, depending on the costs of a piece of that specific type of tropical fruit. Sometimes fruits are covered by a plastic wrap with a brand name. Kiwis and citruses are sometimes packed in bags of 0.5 kg (kiwis) or 1 kg (citruses).
However, as for exotic tropical fruits, these are mostly sold per piece, so they are not grouped together for sale. Please see below the picture of exotic fruits (and vegetables) corner at Carrefour hypermarket in the centre of Prague, having a total area of 10,500 m2 and opened daily from 7-24 hrs. Thus this is one of the most attractive locations for the sales of this kind of fruits. Please note that the current total offer consists only of 7 types of fruits and in very small amounts – bananas for cooking, coconuts, litchi, tamarilas, kumquat and pomegranates. Citruses and bananas are placed separately as common and known products with a larger turnover.
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Figure 4.5.2 Exotic fruit display in Carrefour hypermarket
Source: Own archives
Source: Own archives
38 Proexport Colombia Tropical fruit in the Czech Republic
4.6. Expansion plans
The recent development has confirmed the trend towards the increasing expansion of trading activities to several Central and Eastern European countries. Not only by supplying, but also by establishing branches in surrounding countries. For example, the company Hortim has established branches also in Slovakia and Poland. Some local companies, e.g. VVISS is newly considerating direct imports from overseas territories, instead of purchasing in European harbors. The reason is logically, above all, financial, to allow better margins and more control over prices. However, the competing companies are very deliberate in sharing their expansion plans and strategies, since they consider it to be a business secret. Direct imports from the countries of origin could result in lower prices for final customers and thus make the products more affordable and common for purchase. For comparison, 1 kg of kumquat is currently ten times more expensive as 1 kg of oranges, and on averages fifteen times more expensive than 1 kg of apples.
4.7 Pricing strategy Import prices
Import prices of fresh fruit are dependent on several factors, such as the total supply of the products, the type of the product, its origin. In the case of commodity products like pineapples and bananas, the highly changeable harvests of fresh fruit are an important determinant of price fluctuations.
Prices of fresh products are set on a global level, and speculation on the harvests can cause rapid changes in the price level. Other important factors can be the size of the order, the quality of the product and the inflation and exchange rate. Margins in the international trade in fresh fruit and vegetables are under pressure.
Margins for European importers for instance are typically below 10%. There is a number of reasons why it is not possible to give an accurate picture of the margins for all product and all parties in the import trade, wholesale and retail trade:
• The wide range in the fruit and vegetables assortment; and • The great differences between the various product groups (temperate products and tropical, subtropical products and specialties).
Wholesale prices
Similarly, the wholesale prices are derived from the actual import prices and therefore no standard margin can be stated. Unfortunately, no comparative
Proexport Colombia 39 Market Researches in Eastern Europe statistics on wholesale prices for the past couple of years exists, since firstly, many of the fruits are newly imported, and secondly, there is no organization following these statistics – all official statistics are predominantly focusing on local production, using only production and retail prices. For example, SZIF (State Agricultural Intervention Fund) provides weekly price statistics only in apples. Exotic fruits are in statistical respect still a rather exotic and marginal category and therewith not considered important for retail, agriculture or food processing.
Wholsales are not willing to provide any information regarding their prices or margins. However, on EU level, the information on wholesale prices can be obtained from e.g. ITC’s Market News Service (MNS), that publishes wholesale prices of various fresh fruits and vegetables (including exotic ones) – see www.p- maps.org/nms.
Table 4.7.1 Example of wholesale prices as of 20. 7. 2005 Carton-price in client´s Type of fruit Pallet-price in truck in € warehouse (incl. transport) in € Bananas 1.017-1.545 1.119-1.7 Kumquat 4.617 5.079 Granadilla 0.766 0.990 Physalis 0.743 0.898 Mango 0.822 1.023 Tamarilo 0.584 0.759 Maracua 0.766 0.957 Pitahaya 1.482 1.815 Avocado 0.35 0.462 Pomegranate 0.343 0.825 Starfruit 0.594 0.759 Source: VVISS
Retail prices
The retail prices of exotic and tropical fruits are generally rather high, with the exception of bananas, kiwis and citruses that are long term known and common products here.
Thanks to the high prices, fruits are frequently priced and purchased by pieces rather than kilograms. The following table presents the actual retail prices of available tropical fruits in supermarkets.
40 Proexport Colombia Tropical fruit in the Czech Republic
Table 4.7.2 Actual retail prices of available tropical fruit (as of 20. 7. 2005)
Fruit Price in Euro Granadilas 2.15 pc Kiwanos 3.18 pc Figs fresh 0.56 pc Kumquats 9.10 kg Mangosteens 13.40 kg Rambutans 12.54 kg Bananas for cooking 2.15 kg Bananas fresh 2.58 kg Bananas (Colombia) 0.99 kg Physalis 14.89 pc Mangoes 1.19 pc Melon Cantaloupe (ES) 0.98 pc Melon Galia (ES) 0.56 kg Kiwi (Chile) 0.16 pc Grapefruit red (Greece) 1.32 kg Grapefruit white (ES) 1.15 kg Pomelo (Argentina,Colombia) 2.61 pc Tangerines (Spain) 1.32 pc Orange (ES) 0.99 pc Tamarilo (Colombia) 1.52 pc Starfruit 1.92 pc Pitahaye red 4.14 pc Pitahaya yellow 3.21 pc Source: Ahold, Carrefour
Average consumer’s prices of monitored kinds of southern fruit after a fall in 2002 rose again in 2003; for oranges it was (+4,7 %), lemons (+10%) and kiwis (+5.9%); different development showed prices of bananas which fell by 4.8 %. This price decrease will have a significant effect on the annual consumption of individual kinds of fruit.
Table 4.7.3 Development of consumer prices of selected tropical fruits in €/ /kg
Year Oranges Lemons Bananas Kiwis 2002 0.98 0.96 0.93 2.14 2003 1.03 1.06 0.88 2.27 2004 1.07 0.98 0.92 1.78 Source: Ministry of Agriculture Similarly, according to the interviewed retailers, there does not exist any general profit margin for selling tropical fruit on the Czech market. Since the demand for
Proexport Colombia 41 Market Researches in Eastern Europe this commodity is really low and because it concerns a perishable product, retailers have to lower the prices very often to even be able to sell the goods. Therefore the profit margin fluctuates in the range from -100% to +50%. The desired level would be 30-40%, but on an average, the profit margin was estimated at 0%.
4.8 Segmentation of enterprises by sectors and its categorization
With respect to the relatively small geographical area of the Czech Republic (the distance from the German to the Slovak border is approx. 450 km), the importers of exotic fruits operate all through the market. Individually, some regions can be more penetrated thanks to actual contracts with a certain supermarket or hypermarket chain. Most of exotic fruit traders have several storehouses in the country (see chapter 4.4), to be able to reach quickly any customers needs. On the whole, there are mostly no geographical limitations. On contrary, traders tend to expand their activities also to the neighboring countries, such as Slovakia.
4.9 Recommendations
Competitors and their pricing have a direct effect on the potential success of trade opportunities. The initial step is to understand who is the competition and what are the main competitors' strengths and weaknesses. The fresh fruit and vegetables industry is open to new entrants and more competition can be expected with growing consumption of exotic fruits in European countries. However, given the nature of the trade of exotic and tropical fresh fruits in European Union, here again the competitors shall be considered on European, rather than on the Czech level.
Trade shows can of course be helpful for gaining contact with new customers and learning about market developments. It can however also be used to find out more about competition. Attending industry trade shows can be one useful way how to learn about the competition.
Producers of fruits (and vegetables) in developing countries benefit from their geographic location, which offers them good climatic conditions for the possibility to supply off-season. These are often the most important factors that positively distinguish your company from competitors in other countries, particularly from competitors in Europe.
42 Proexport Colombia 5. Distribution channels
5.1 Distribution channels
The following graph illustrates the distribution network of the fresh fruit trade in the Czech Republic in general, thus also including the distribution flow of locally grown fruits.
Figure 5.1.1 Overview of the fresh fruit trade flow
Source: ProFound Advisers
Nevertheless, as regards the commodity of exotic and tropical fruits specifically, there in fact hardly exist any direct Czech imports of exotic and tropical fruits from the countries outside Europe.
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Wholesale level
The exotic fruit trade is handled rather on “European” level than by individual countries. This means, that the vast majority of the goods is imported by large traders to large European harbours, where the fruits are further sold to other (inter)national traders on the stock market. This way is the only convenient way for markets with such a low consumption of exotics as the Czech market. At the moment, no Czech trader is dealing with direct imports from Colombia. Czech traders deal with storage and further distribution to other wholesales, retail or directly horeca sector clients.
Importers are functioning to a certain extent as logistics service providers, quality controllers and coordinators of the stream of goods. In general, the importers still play an individual and specific role in the chain, because they have a strong relationship with their suppliers and because they play an indispensable role as collectors of a broad package of products.
There is also continuing trend towards concentration and thinking and operating in “straight lines, which means increasing method of direct trading lines between producers/exporters and large retail chains, partly eroding the function of the specialized importers.
Most importers (importing wholesalers) take care of the import formalities and process the imported goods for further distribution in the importing country or for re-export to other countries. They also perform additional tasks such as ripening bananas, portioning and packaging fresh fruit for self-service, or repalletising goods on to different sized pallets. In most cases, importers have long-standing contacts with their suppliers.
Importers also advise the suppliers on issues such as quality, size and packaging. In some cases, importers also make use of agents.
Specialised agents function as intermediaries for establishing contacts between exporters and importers. They do not trade products on their own account. They maintain contacts with foreign suppliers and procure produce for their customers, who are generally wholesalers. Most agents work on the basis of a commission on the sales price.
The present situation in the European distribution structure forces fruit and vegetable exporters in developing countries to be highly aware of and attentive to the demands set by the large retail chains on the import trade and to cater fully to them. The leading implication here is that the large retail chains aim at trade on a large scale. This demands uniform quality and volume on the side of the exporter.
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At the same time, large catering establishments have moved towards centrally controlled systems of purchasing, which are more economic in terms of both time and money because of direct supply from the producer sector.
This consolidation of buyers is occurring throughout the food distribution system. As a result, demand for consistent volumes and qualities of fresh produce increases, causing firms to introduce procurement methods that manage the supply chain more efficiently. Buyers are increasingly developing partnerships with preferred suppliers, in order to ensure availability of produce, which meets their specifications on a week-in, week-out basis. Buyers of larger volumes are the power behind consolidation at the supplier level, forcing shippers to attempt to match the scale of their customers in order to serve them efficiently.
The emergence of larger scale suppliers implies that only a limited number of firms has sufficient financial resources and backing, and is able to bear the costs and risks associated with producing crops in several regions or countries over extended periods.
As a rule, exporters in developing countries and EU wholesale grocers, which deliver directly to retail shops, do not deal directly with one another. The main reason is the fact that exporters do not have the necessary infrastructure (sales offices, storage capacity, logistics). Exceptions are, for example, contacts with the retail trade's buying groups (of large supermarket chains).
Nevertheless, it is not always possible to make a clear distinction between importers supplying supermarket chains, specialized shops, or the out-of-home market. Many importers serve several retail types as their customers.
Retail level
Marketing and sales to the public are the most important functions at the retail level. The structure of the retail trade for fruit and vegetables offers the consumer the possibility to make a choice from various points of sale, the most important being:
• specialized fruit and vegetables shops; • hyper / supermarkets; • open-air markets; • producers/farmers.
The traditional trade channels, i.e. the markets and greengrocers, continue to sell a significant share of the fresh products. However, as regards the tropical and exotic fruit, their offer is mainly limited to bananas, citruses and few more “standard” tropical fruits, such as pineapples, kiwis or coconuts.
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Hypermarkets and supermarkets are at the forefront of the increasing sales of pre-packed produce. The fruit and vegetables product assortment in the supermarkets and hypermarkets has become much diversified. A lot of effort goes into the design of the fresh produce departments to appeal to the consumer, both in terms of convenience and product variety. Supermarket organizations have also increasingly penetrated the function of the specialized wholesale trade for fruit and vegetables and have founded their own distribution centers in order to collect the products and supply their own stores. Apart from that, a tendency can be noticed whereby the fruit and vegetables departments of the superstores try to imitate the typical characteristics of the (small) specialist shop.
Supermarket chains increasingly seek to ensure their supplies through direct contact with growers and grower associations, especially for bulk tropical fruit and vegetables, which already have a considerable market. This has resulted in sellers of fresh fruit and vegetables facing fewer, but larger buyers. The growing market share of big supermarket chains and their increasing international co- operation have major implications for exporters of fresh fruit in developing countries. Because of this growth in supermarkets, spurred on by changes in shopping habits - consumers increasingly prefer one-stop shopping and superstores - fruit is increasingly channelled through large and sophisticated handling companies, skilled in all aspects of import and distribution.
The biggest food retail chains in the Czech Republic are Makro Cash&Carry ýR, Ahold Czech Republic, a.s., Kaufland, Tesco Stores ýR, Globus, Carrefour ýR, Interspar and Delvita. All of these chains have also exotic tropical food in their assortment. Nevertheless, the purchase volumes are so negligible in the total turnover, that no chain has aimed its effort on becoming a specialist or reach any significant turnover in this assortment so far.
The offer of exotic fruits is at this moment aimed rather on the goal to have a complete assortment for customers, and to stay in line with the offer of competing retails. There are no major differences between these chains, with the exception of Makro, which is a cash and carry type of retail, and Delvita, operating shops of smaller sizes (only supermarkets, no hypermarkets are involved in their structure).
E-commerce
E-commerce is a relatively new method of transacting business using information technology, which allows physical processes to be replaced by electronic ones. In many cases, it is an open system, usable by all enterprises anywhere, provided an appropriate infrastructure is present, and has low barriers to entry, unlike earlier forms of electronic data interchange. In the coming years, it will therefore also have a significant impact on exporters in developing countries.
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With the aim to create a broader marketplace for fresh fruit and vegetables, business-to-business (B2B) companies have proliferated. Although the number and range of e-commerce sites has grown over the last years, e-commerce has not yet become of major importance in the international fruit and vegetable trade. The development of these B2B sites can be explained by three main targets: to cut transaction costs, improve efficiency, and expand the trading horizon. Some of these sites sell any type of fresh food, seafood, meat, dairy, fruit and vegetables; this is the case of sites like www.agribuys.com, www.foodstrading.com, and www.foodtrader.com. As mentioned before, none of these sites is specifically focused on, or has specific experience with tropical fruits.
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6. Commercial Access Guide
6.1 Preferential tariffs
All goods entering the EU are subject to import duties. External trade conditions are mostly determined by EU regulations. The Czech Republic also uses the EU´s Harmonized Tariff Schedule (Nomenclature) on the TARIC (Integrated Tariff of the European Community) which is issued by the Commission and the Member States for the purpose of applying Community measures relating to import and exports. The level of the tariffs depends on the country of origin and the product. If there is not a special trade agreement in force, the general import tariff (conventional duty) applies.
In January 2005 Commission Regulation (EC) No 1810/2004 entered in force which is binding in all Member States. In its Part Two “Schedule of Customs Duties”, Section II “Vegetable products” Chapter 8 deals with ”Edible fruits and nuts; peel of citrus fruits or melons”. The section 0810 ‘Fruits’, and its category 081090 ‘Others’ contain the fresh tropical fruits relevant for this report, with the subcategories 08109030 ‘Tamarinds, cashew apples, lychees, jackfruit, sapodillo plums’ , 8109040 ‘Passion fuit, carambola and pitahaya’ and 8109095 ‘Other’ .
Colombia is included in the general system of preferences – GSP. This agreement allows products originating in the countries concerned to be imported at preferential tariffs or, for the least developed countries, duty-free. A “Certificate of Origin Form A” has to be filled in by the exporter and issued by the competent authorities. Tariff contingents and tariff ceilings do not exist anymore.
According to international agreements Colombia is included in the SPGE group of preferences and therefore benefits from 0% tariff preference on the basis on Regulation (EC) No 2501/2001 and Commission Regulation (EC) No 2331/2003. Untill July 1st 2005, this meant that Colombian exporters could introduce so- called “non-sensitive” products at a 0% tariff rate and “sensitive” products, such as all products under nomenclatures code 0810 at a 3.5% reduced rate.
However since July 1st 2005, Colombia is a member of the GSP Plus program, which assists the countries of the Andean Community, such as Colombia, in their battle against drugs. The GSP Plus will officially enter into force on the 1st January 2006, but has already started to run in its preliminary form for 14 countries on the 1st July 2005. Exporters based in one of the GSP Plus programs are also exempt from duties on sensitive products. Therefore all tropical fruits can be imported into the European Union from Colombia duty free.
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6.2 Tariffs imposed by major competitors
Major Colombian competitors in the tropical fruit market are Germany, Belgium, France and the Netherlands. Since they all are European Union member states they do not face tariffs of any kind.
Other non- EU competititors such as Madagascar also face a 0% tariff rate.
The conventional rate for third countries that not have a general system of preferences with the European Union is also 0%, since there is no inter- European Union competition in this market, because none of the EU memberstates are producing tropical fruit.
6.3 Norms of origin
To be able to benefit from the GSP Plus 0% duties on sensitive and non-sensitive products it is necessary to prove that the product that is being imported is really from Colombia or another GSP (Plus) country. Some products clearly originate in a given country, e.g. because they are grown there from local seed. These are called “wholly obtained” goods. But increasingly in today’s world, others are not produced in a single country.
In general terms, products are wholly obtained in a particular beneficiary country (or in the EC, in the case of cumulation) if only that country has been involved in their production. Even the smallest addition or input from any other country disqualifies a product from being "wholly obtained". In the case of fruit this means that the fruit has to be grown and harvested within Colombia.
In practice, except for naturally-occurring and related products, situations where only a singlecountry is involved in the manufacture of a product are relatively rare. Globalisation of the manufacturing processes has resulted in many products being made from parts, materials etc. coming from all over the world. Such products are not of, course, wholly obtained, but they can nevertheless obtain originating status.
The condition is that the non-originating materials used (in practice: the materials imported into the beneficiary country) have undergone "sufficient working or processing". It must be stressed that only the non-originating materials need to be worked or processed sufficiently. If the other materials used are by themselves already originating (either by virtue of being wholly obtained, or by having been worked or processed sufficiently), they do not have to satisfy the conditions set out.
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What can be considered as sufficient working or processing, depends on the product in question. For the products that belong under Chapter 8, all edible fruits and nuts, the requirements are that the working or processing carried out on non- originating materials, which confers originating status is manufacture in which:
- All materials of Chapter 8 used are wholly obtained and - The value of any materials of Chapter 17 used does not exceed 30% of the ex-works price of the product
Figure 6.3.1 Sufficient working or processing requirements
Source: Official Journal of the European Union3
There are three principal forms of proof used in the context of the EC GSP: x The certificate of origin Form A4, used as proof of origin at import into the EC and in regional cumulation. o Regional cumulation can be present between the countries of one of the regional groups recognised by the EC GSP4.5 Materials originating in one country of the group which are further worked or processed in another beneficiary country of the same group are considered to originate in the latter country. x The Invoice Declaration, which can be used for goods whose total value does not exceed € 6000 (Article 89).
3 Chapter 17 contains all types of sugar products 4 We kindy refer you to the annexes for an example of Form A 5 The regional groups (listed in Article 72) are: - Group I: Brunei-Darussalam, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam; - Group II: Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Peru, Venezuela; - Group III: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka.
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x The Movement Certificate EUR1, which may be used as may an invoice declaration, when goods are exported to beneficiary countries from the EC in the context of bilateral cumulation. (Article 90a). o Under bilateral cumulation, materials originating in the EC, within the meaning of the EC GSP RoO, and further worked or processed in a beneficiary country, are considered to originate in the beneficiary country.
The period of validity of a proof of origin is 10 months.
6.4 Barriers
Levying of any customs duty or charge having an equivalent effect and the application of any quantitative import restriction or measure having an equivalent effect are prohibited in trade with third countries.
For exporters in developing countries legislative standards enforced through EU legislation and possibly through EU member states, increasingly pose obstacles when exporting to the EU. Although standards are developed in order to protect consumers, environment or improve the harmonization of the internal EU market; they are often seen as technical, non-tariff barriers to trade or as a green wall protecting the fortress of Europe when looking at environmental standards.
When looking at the situation of exporters in developing countries who would like to access the EU market, there are many differences to overcome. Differences between the EU and third countries in their technical regulations and conformity assessment procedures are based on legitimate origins, such as differences in local preferences regarding health, safety and the environment, and differences in levels of income and labor conditions.
Moreover, exporters in developing countries often are critically constrained by the lack of important issues such as: - Access to credit and insurance and investment climate - Human and physical capital, management and marketing skills - Sufficient facilities for transport and storage infrastructures - Transparent legal and regulatory framework - Awareness and knowledge - Participation in the development of standards - Certifying bodies, test laboratories, standardization institutes etc.
Therefore, the standards in the EU could be seen as obstacles when accessing the EU market, though official barriers do not longer exist.
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6.5 Licences
Plant Health Control
The imports into the European Union (EU) of plants, plant products and any other material capable of harboring plant pests (e.g. wooden products and containers, soil, etc) may be subject to the following protective measures, as established by Directive 2000/29/EC: 1. Import Bans; 2. Phytosanitary certificate and/or phytosanitary certificate for re-export; 3. Customs Inspection and plant health checks; 4. Importers Register; 5. Advance notice on imports. These phytosanitary measures are intended to prevent the introduction and/or spread of pests and organisms harmful to plants or plant products across the EU boundaries. Those measures enforce the International Plant Protection Convention (IPPC)–FAO, to which EU Member States are contracting parties and which sets out the basic rules and control procedures to secure a common and effective action to protect the countries' agricultural and forestry resources.
The IPPC requires every contracting country to establish a national plant protection organization to inspect growing crops and to report on pests and control them. A complete listing of the national plant protection organizations (NPPOS) can be found at the official website for the IPPC (http://www.ippc.int/).
French Overseas Departments and Spanish Canary Islands, in view of its agricultural and ecological characteristics, may request additional conditions to those laid down in the Directive assuming they are justified on grounds of the protection of health and life of plants in their territories.
Directive 2000/29/EC establishes several exemptions for each phytosanitary measure (e.g. plants and plant products for trial, scientific purposes, work on varieties selection; internal transit; small quantities that do not pose a risk of spreading harmful organisms etc.). They are usually granted for a limited period, subject to special import conditions and to a specific licence.
1. Import bans6
Member States shall ban the introduction into their territory of: A. Certain particularly dangerous harmful organisms, which are listed in Annex I, Part A.
6 All appropriate annexes can be found at http://export-help.cec.eu.int/
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B. Plants and plant products listed in Annex II, Part A, where they are contaminated by the relevant harmful organisms listed in that part of the Annex. C. Plants or plant products listed in Annex III, Part A, where they originate in the relevant countries referred to in that part of the Annex. D. Plants, plant products and other objects listed in Annex IV, Part A, except for those meeting the special requirements indicated in that part of the Annex.
In relation to wood packaging, the new provisions introduced by Directive 2004/102/EC establish that wood packages of any type (cases, boxes, crates, drums, pallets, box pallets and other load boards, pallet collars, etc) shall go through one of the approved treatments specified in Annex I to FAO International Standard for Phytosanitary Measures No. 15 and bear the corresponding mark as specified in Annex II.
Decision 2005/51/EC, OJ L-21 25/01/05, authorises Member States to provide derogations with regard to the prohibitions referred to in point 14 of Annex III Part A and point 34, section I, Part A, Annex IV above mentioned for soil originating in certain third countries under specific conditions provided for in the Annex of the same Decision and destined for treatment in dedicated hazardous-waste incinerators.
Certain areas of the EU, that are free from plant pests established elsewhere in the EU, have been designated as “protected zones” and may be affected by special bans and requirements to prevent spreading of harmful organisms to particular crops (Annex I Part B; Annex II Part B; Annex III Part B and Annex IV Part B).
2. Phytosanitary certificate and/or phytosanitary certificate for re-export. Imports of plants and plant products listed in Annex V, Part B must be accompanied either by an official “phytosanitary certificate” or a ”phytosanitary certificate for re-export” (in case the consignment after being dispatched from a third country, has been stored, repacked or split up in another non-EU country).
Those documents certify the phytosanitary conditions of plants and plants products, and also that the shipment has been officially inspected, complies with statutory requirements for entry into the EU and is free of quarantine pests and other harmful pathogens.
They shall be at least in one of the official languages of the EU and shall be issued by the designated authorities of the third country of export or re-export and made out not more than 14 days before the date on which the plants, plant products or other objects covered by it have left the country of issuance.
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Phytosanitary certificates shall be issued in compliance with the provisions of the IPPC and taking into account the FAO International Standard for Phytosanitary Measures No 12 on Guidelines for phytosanitary certificates. 7
3. Customs inspection and plant health checks.
In addition to the above mentioned certificates, the plants and plant products listed in Annex V, Part B shall, from the time of their entry in the EU, be subject to customs inspections and supervision by the responsible official bodies.
The inspections shall consist in: x Documentary checks establishing that the required certificates, alternative documents or marks have been issued or satisfied x Identity checks establishing that the plants, plant products or other objects conform to the ones declared on the required documents and x Plant health checks establishing that the plants, plant products or other objects, including their wood packing material if any, comply with the specific requirements and phytosanitary measures specified in Directive 2000/29/EC and can be imported into the EU.
The inspections must be made at the point of entry into the EU at the proper Member State’s border inspection post (BIP). However, identity checks and plant health checks may be carried out at the place of destination provided that there is satisfaction of specific guarantees and documents regarding transport of plants and plant products determined for each particular case
4. Importers register
Importers, whether or not producers, of plants, plant products or other objects, listed in Annex V, Part B, must be included in an official register of a Member State under an official registration number.
5. Advance notice on imports
Member States may require airport authorities, harbour authorities, importers or operators to give, as soon as they are aware of the imminent arrival of a consignment of plants, plant products and other objects advance notice to the customs office of point of entry and to the official body of point of entry.
In addition and without prejudice to provisions of Directive 29/00, plants, plant products and any other material capable of harboring plant pests may be subject to emergency measures.
7 For a sample of a phytosanitary certificate, please see the annexes
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Additional information for the Czech Republic
Inspection Procedure
Health inspection has to be applied for by the importer or his representative prior to the import by submitting a plant health movement document (RostlinolékaĜský pĜepravní doklad), accompanied by an enclosure of the mandatory certificates related to the goods in question.
In addition to the verification of the documents, the authorities at the customs points of entry will inspect the products upon arrival by identity and/or physical checks. Sampling procedures for quality analyses can be carried out at designated control laboratories. Additional checks can be executed at all stages of the supply chain.
If the results of the inspection procedures have been proven to be favourable for the import of the goods, the commodities can be released for free circulation.
Health controls of plants and plant products are only carried out at the designated Border Inspection Posts - BIPs (StanovištČ hraniþní kontroly) located at the airport RuzynČ in Prague and at the customs post office in Prague 5.
Competent authority / competent bodies
Státní rostlinolékaĜská správa (State Phytosanitary Administration) Odbor karantény (Division of Quarantine) Drnovská 507 CZ-16106 Praha Tel: (+420) 2 3302 2234 Fax: (+420) 2 3302 2240 E-mail: [email protected] Website: http://www.srs.cz
6.6 Quotas
Quotas have been assigned by the European Union to specific countries for specific products, which allow for the controlled importation of specific products.
There are however no quotas for any of the products under Chapter 8 originating from Colombia.
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6.7 Approvals & 6.8 Technical standards
Health control of foodstuff of non-animal origin
Imports of foodstuffs of non-animal origin into the European Union (EU) must comply with general conditions and specific provisions designed to prevent risk to public health and protect consumers' interests.
The general rules applicable to these products are as follows: 1. General rules of hygiene for foodstuffs 2. General conditions concerning contaminants in food 3. Special provisions on Genetically Modified (GM) food and Novel food 4. General conditions of preparation of foodstuffs 5. Official control of foodstuffs
Besides, in view of fulfilling food and feed safety conditions in the EU, specifically in relation with requirements for traceability, importers are required to keep documentation available in order to identify the exporter in the country of origin, as established by Regulation (CE) 178/2002.
1. General rules of hygiene for foodstuffs
The general rules of hygiene for foodstuffs and procedures for verification of compliance with these rules are laid down in Directive 93/43/EEC (OJ L-175 19/07/1993). All imported foodstuffs must comply with these rules so that they ensure their safety and wholesomeness. These measures cover preparation, processing, manufacture, packaging, storage, transport, distribution, handling, sale and supply of foodstuffs.
Member States may introduce more specific hygiene provisions if they are not less stringent and do not constitute a restriction to trade in foodstuffs. If a hygiene problem likely to pose a serious risk to human health arises or spreads in the territory of a third country, the European Commission may suspend imports from all or part of the third country concerned or take interim protective measures regarding the foodstuffs concerned, depending on the seriousness of the situation.
2. General conditions concerning contaminants in food
Contaminant substances may be present in food as a result of the various stages of its production and marketing or due to environmental pollution. Since they represent a real risk for food safety, the EU has taken measures to minimise the risk by setting maximum levels for certain contaminants in foodstuffs.
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a) Maximum levels of certain contaminants in foodstuffs
Certain foodstuffs (i.e. fruit, vegetables, nuts, cereals, fruit juices, etc…) must not, when placed on the market, contain higher contaminant levels than those specified in Regulation (EC) 466/2001
This Regulation covers four different categories of contaminants: nitrates, aflatoxins, heavy metals (lead, cadmium, mercury) and 3-monochloropropane- 1,2diol (3-MCPD).
The maximum contaminant levels relate to the edible part of the foodstuffs but apply also to the ingredients used for the production of compound foodstuffs. b) Maximum levels of pesticide residues in and on food
Member States may restrict the putting on the market within their territories of certain products containing pesticide residues if the quantity of these residues exceeds the maximum levels permitted. These limits depend on the toxicity of the substance in question.
Pesticides residues in food are regulated by three Council Directives 76/895/EEC (OJ L-340 09/12/1976) 86/362/EEC (OJ L-221 07/08/1986) and 90/642/EC (OJ L-350 14/12/1990) which cover the following products: fruit and vegetables, cereals and other products of plant origin.
This legislation is also applied to the same products after being dried or processed or after their inclusion in a composite food in so far as they may contain pesticide residues. c) Maximum levels of radioactive contamination of foodstuffs
Regulations (EC) 3954/1987 (OJ L-371 30/12/1987) and 944/1989 (OJ L-101 13/04/1989) lay down the maximum permitted levels of radioactive contamination of foodstuffs (either immediately or after processing) which may be placed on the market following a nuclear accident or any other case of radiological emergency.
There is a list of minor foodstuffs (i.e. those which are consumed least) for which the maximum permitted levels are considerably higher (ten times higher). d) Materials intended to come into contact with foodstuffs
Materials and articles intended to come into contact with foodstuffs must be manufactured so that they do not transfer their constituents to food in
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quantities which could endanger human health, change the composition of the food in an unacceptable way or deteriorate the taste and odour of foodstuffs.
The Regulation (EC) 1935/2004 establishes a list of groups of materials and articles (such us plastics, ceramics, rubbers, paper, glass, etc.) which may be covered by specific measures that include a list of the authorised substances, special conditions of use, purity standards, etc. Specific measures exist for ceramics, regenerated cellulose and plastics.
3. Special provisions on Genetically Modified (GM) food and Novel food
In order to ensure the highest level of protection of human health, EU legislation provides for a single authorisation procedure for the placing on the market of food containing, consisting of or derived from Genetically Modified Organisms.
An application must be sent to the competent authority of a Member State and then referred to the European Food Safety Authority (EFSA) which carries out a risk assessment.
On the basis of the opinion of EFSA, the Commission drafts a proposal for granting or refusing the authorisation, which must be approved by the Standing Committee on the Food Chain and Animal Health. The authorised food and feed are entered in the Community Register of GM food and feed.
GM food lawfully placed on the EU market prior to 18 April 2004 may continue to be placed on the market, used and processed provided that they are notified to the Commission before 18 October 2004. Novel foods (i.e. foods and food ingredients that have not been used for human consumption to a significant degree within the EU before 15 May 1997) must also undergo a safety assessment before being placed on the EU market. Companies that want to place a novel food on the EU market must submit their application to the competent body of a Member State for risk assessment purposes. As a result of this assessment, an authorisation decision may be taken. The authorisation decision defines the scope of the authorisation, the conditions of use, the designation of the food or food ingredient, its specification and the specific labelling requirements.
Novel foods or novel food ingredients considered by a national food assessment body as substantially equivalent to existing foods or food ingredients may follow a simplified procedure, only requiring notifications from the company.
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4. General conditions of preparation of foodstuffs
EU legislation lays down the rules relating to treatment of foodstuffs, food ingredients and their conditions of use in order to protect the health of consumers and guarantee the free circulation of foodstuffs in the European Union market.
Moreover, specific provisions for groups of foods are laid down in specific Directives. These include compositional requirements, hygiene requirements, list of additives, purity criteria, specific labelling requirements , etc. a) Authorised food additives and flavourings
The scope of the Directives covers food additives and flavourings used as ingredients during the manufacture or preparation of food and which are part of the finished product.
The only substances which may be used as food additives are those included in the approved common lists and then only under the conditions of use mentioned in those lists (e.g. colorants, sweeteners, preservatives, emulsifiers, stabilisers, raising agents, etc…). b) Preparation and treatments of certain foodstuffs
Rules in relation with the manufacture, marketing and importation of foods and food ingredients that are subject to specific treatments (e.g. ionising radiation or quick-freezing) must be fulfilled. c) Specific provisions for certain groups of products and for foodstuffs for particular nutritional purposes
Specific provisions are applied to certain groups of products (such as cocoa, sugar, etc.) and to foodstuffs intended for particular nutritional uses (baby foods, dietary foods, gluten-free foods...). These may include specific requirements on composition, hygiene, labelling (e.g. declaration of the energy value, carbohydrate, protein and fat content), list of additives, purity criteria, etc.
The Directives establish the procedures to be followed if a particular foodstuff, though complying with the relevant specific Directive, is believed to endanger human health.
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5. Official control of foodstuffs.
Directive 89/397/EEC (OJ L-186 30/06/1989) provides for official inspections of foodstuffs, food additives, vitamins, mineral salts and other elements as well as materials or articles intended to come into contact with foodstuffs to ensure that they comply with the provisions designed to protect the health and interests of consumers.
The control may apply to import into the EU and/or to any other stage of the food chain (manufacture, processing, storage, transport, distribution and trade) and may include inspection, sampling and analysis, inspection of staff hygiene, examination of written and documentary material, examination of verification systems set up by the food operator and of the results obtained.
Inspection will be carried out by the Member State competent authorities regularly, and/or where non-compliance is suspected.
The general methods of sampling and analysis that must be carried out by official laboratories for the monitoring of foodstuffs are established in Directive 85/591/EEC (OJ L-372 31/12/1985) and their implementing measures.
Additional information for the Czech Republic
Control Procedure
Health inspection has to be applied for by the importer or his representative prior to the import, accompanied by an enclosure of the mandatory certificates related to the goods in question.
In addition to the verification of the documents, the authorities at the customs points of entry will inspect the products upon arrival by identity and/or physical checks. Sampling procedures for quality analyses can be carried out at designated control laboratories. Additional checks can be executed at all stages of the supply chain.
If the results of the inspection procedures have been proven to be favourable for the importation of the goods, the commodities can be released for free circulation.
Health controls of foodstuffs are only carried out at designated Border Inspection Posts - BIPs (StanovištČ hraniþní kontroly).
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Státní zemČdČlská a potravináĜská inspekce (Czech Agriculture and Food Inspection Authority) OddČlení pro vnitĜní a vnČjší komunikaci (Internal and External Communication Unit) KvČtná 15 CZ-60300 Brno Tel: (+420) 5 4242 6625 Fax: (+420) 5 4242 6645 E-mail: [email protected] Website: http://www.szpi.gov.cz
6.9 Packaging
Packaging EU
Care must be given to the packaging of products if one intends to export to the EU countries. It is obvious that the packaging must be travel-resistant. As required, products should also be protected against the elements, changes of temperature, rough handling and theft. Besides these basics issues, some importers may have specific demands concerning packaging, like information concerning the order printed on the boxes (order number, box number, name department or contact person etc.).
For environmental reasons packaging made from materials like PVC is less popular with consumers and in some cases is or will be forbidden by governments. Exporters in developing countries should be prepared to discuss this issue with potential clients and should anticipate the cost of special packaging in their selling price, if required.
The European Directive on Packaging and Packaging Waste (94/62/EC) establishes overall legislation for the treatment of packaging waste, consisting of quantitative objectives to be achieved by each of the EU member states. The member states have the responsibility to translate the Directive into national legislation.
It is becoming increasingly difficult and expensive to dispose of waste in Europe. In principle, the importer is held responsible for disposal of the packaging waste for all goods from outside the EU. It is therefore crucial, when planning exports to the EU, to take the packaging of your products (both sales packaging and transport packaging) into consideration. To fulfil the requirements of the target market, good communication with the importer about packaging is necessary.
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Outer containers should bear the consignee's mark and port mark and be numbered, in accord with packing list, unless the contents can be otherwise readily identified. The following items must appear on the two vertical sides of each outer container:
x the sales contract number x the consignee's instruction number x the import licence number (if applicable) x gross and net weights
A number of issues must be addressed when selecting packaging. Broadly, they can be grouped into questions of containment for the logistics of distribution; protection to ensure the produce arrives at the point of sale in the best possible condition; marketing to present the produce in a preferred style; and environmental impact relating to the handling of the used packaging.
The manual on the Packaging of Fresh Fruit and Vegetables ITC UNCTAD/GATT introduces overseas exporters to the packaging requirements of the European markets. In particular, it deals with the questions of containment, protection and marketing which have hitherto dominated the requirements of the trade.
There is now increasing pressure to create a more environmentally friendly means of handling packaging waste. Some EU governments, rather than wait for an EU wide directive, have already enacted legislation regarding packaging and packaging waste. Their common objectives include the minimisation of waste, re- use by re-cycling and safe disposal where no other use is possible.
Labeling8
All foodstuffs marketed in the European Union (EU) must comply with EU labelling rules, which aim at ensuring that consumers get all the essential information to make an informed choice while purchasing their foodstuffs. Hence, the applicable labelling provisions are as follows: x General rules on food labelling x Specific provisions for certain groups of products: o Labelling of Genetically Modified (GM) food and Novel Food o Labelling of foodstuffs for particular nutritional purposes o Labelling of materials intended to come into contact with food o Labelling of particular foodstuffs Besides these mandatory rules, there is also additional information that may be included by the manufacturers on a voluntary basis provided that it is accurate and does not mislead the consumer. For example, nutritional labelling is not
8 Source: DG Trade
Proexport Colombia 63 Market Researches in Eastern Europe obligatory unless a nutritional claim (e.g. "low fat", "high fibre") is made on the label or in advertising material. In this case, nutritional claims must comply with a standardised format, pursuant to Council Directive 90/496/EEC (OJ L-276 06/10/1990). Similarly, Council Regulation (EEC) 2092/91 (OJ L-208 24/07/1992) sets out rules governing the use of the organic label.
General rules on food labelling
Labels of foodstuffs according to the general rules laid down by Council Directive 2000/13/EC must contain the following particulars:
x The name under which the product is sold. No trademark, brand name or fancy name may substitute the generic name but rather may be used in addition. Particulars as to the physical condition of the foodstuff or the specific treatment it has undergone (powdered, freeze-dried, deep-frozen, concentrated, smoked, irradiated or treated with ionizing radiation) must be included where omission of such may confuse the purchaser. x The list of ingredients, preceded by the word "Ingredients", must show all ingredients (including additives) in descending order of weight as recorded at the time of their use in the manufacture and designated by their specific name. In the case of those products that may contain ingredients liable to cause allergies or intolerances, such as alcoholic beverages, a clear indication should be given on the label by the word “contains” followed by the name of the ingredient. However, this indication will not be necessary provided the specific name is included in the list of ingredients. x The net quantity of pre-packaged foodstuffs in metric units (litre, centilitre, millilitre) for liquids and (kilogram, gram) for non-liquids. x The date of minimum durability consisting of day, month and year in that order and preceded by the words "best before" or "best before end" or the "use by" date for highly perishable goods. x Any special conditions for keeping or use. x The name or business name and address of the manufacturer, packager or importer established in the EU. x Place of origin or provenance x Instructions of use, where appropriate. x Indication of the acquired alcoholic strength for beverages containing more than 1.2% by volume. x Lot marking on pre-packaged foodstuffs with the marking preceded by the letter "L".
These particulars must appear on the packaging or on a label attached to pre- packaged foodstuffs. In the case of pre-packaged foodstuffs intended for mass caterers (foodstuffs sold in bulk), the compulsory labelling particulars must appear on commercial documents while the name under which it is sold, the date of durability or use-by-date and the name of manufacturer must appear on the external packaging.
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The labelling must not mislead the purchaser as to the foodstuff’s characteristics or effects nor attribute the foodstuff special properties for the prevention, treatment or cure of a human disease. The information provided by labels must be easy to understand, easily visible, clearly legible and indelible and must appear in the official language(s) of the Member State where the product is marketed. However, the use of foreign terms or expressions easily understood by the purchaser may be allowed.
Specific provisions for certain groups of products
There are also labelling provisions which apply to specific groups of food products in order to give the consumers more detailed information on the contents and the composition of these products:
Labelling of Genetically Modified (GM) food and Novel food
Products consisting of or containing Genetically Modified Organisms (GMOs) and food products obtained from GMOs which have been authorised for the placing on the EU market are subject to labelling requirements pursuant to Regulations (EC) 1829/2003 and 1830/2003.
In the case of pre-packaged products, operators are required to state on a label that “This product contains genetically modified organisms”. This labelling obligation also applies to highly refined products (e.g. oil obtained from genetically modified maize) as well as GM additives and flavourings.
Labelling of foodstuffs for particular nutritional purposes
In addition to the rules applicable to foodstuffs in general, specific provisions (e.g. declaration of the energy value, carbohydrate, protein and fat content, etc.) for groups of foods for particular nutritional uses (baby foods, dietary foods for special medical purposes, foods for weight reduction, foods for sportspeople, etc.) are laid down in specific Directives. These products must be suitable for their claimed nutritional purposes and marketed in such a way as to indicate their suitability.
Labelling of materials intended to come into contact with food
According to Regulation 1935/2004, articles intended to come into contact with foodstuffs, including packaging materials and containers shall be labelled "for food contact" or shall bear the symbol with a glass and fork.
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Additional information for the Czech Republic
Surveillance and inspection of the conformity of foodstuffs to the information provided on their labels are to be carried out at different stages of the supply chain which, in case of imported products, ranges from customs clearance to retail outlets. Checks are also carried out at the premises of companies dealing in foodstuffs.
Information intended for the final consumer must be inscribed in Czech on the label and on the product package, if applicable. In addition, the product information may be provided on the label in other languages, too. At other marketing stages, the same data could as well be indicated in the commercial documents.
Competent authority / competent bodies
Státní zemČdČlská a potravináĜská inspekce (Czech Agriculture and Food Inspection Authority) OddČlení pro vnitĜní a vnČjší komunikaci (Internal and External Communication Unit) KvČtná 15 CZ-603 00 Brno Tel: (+420) 5 4242 6625 Fax: (+420) 5 4242 6645 E-mail: [email protected] Website: http://www.szpi.gov.cz
6.10 Required documentation for import
When importing products from a third country, like Colombia, into the European Union six different documents are required;
1) Commercial invoice
The commercial invoice is a record or evidence of the transaction between the exporter and the importer. Once the goods are available, the exporter issues a commercial invoice to the importer in order to charge him for the goods.
The commercial invoice contains the basic information concerning the transaction and it is always required for customs clearance.
It is similar to an ordinary sales invoice, though some entries specific to the export-import trade are added. The minimum data generally included are the following:
66 Proexport Colombia Tropical fruit in the Czech Republic
x Information on the exporter and the importer (name and address) x Date of issue x Invoice number x Description of the goods (name, quality, etc.) x Unit of measure x Quantity of goods x Unit value x Total item value x Total invoice value and currency of payment. The equivalent amount must be indicated in a currency freely convertible to EUR or other legal tender in the importing Member State x The terms of payment (method and date of payment, discounts, etc.) x The terms of delivery according to the appropriate Incoterm x Means of transport
No specific form is required. The commercial invoice is to be prepared by the exporter according to standard business practice and it must be submitted in the original along with at least one copy. It generally needs not be signed. In practice, the original and the copy of the commercial invoice are often signed. The commercial invoice may be prepared in any language. However, a translation into English is recommended.
2) Customs Value Declaration
The Customs Value Declaration is a document which must be presented to the customs authorities where the value of the imported goods exceeds EUR 10 000. The Customs Value Declaration must be draw up conforming to form DV 19, laying down provisions for the implementation of the Community Customs Code. This form must be presented with the Single Administrative Document (SAD). The main purpose of this requirement is to assess the value of the transaction in order to fix the customs value (taxable value) to apply the tariff duties. The customs value corresponds to the value of the goods including all the costs incurred (e.g.: commercial price, transport, insurance) until the first point of entry in the EU. The usual method for establishing the Customs value is using the transaction value (the price paid or payable for the imported goods). In certain cases the transaction value of the imported goods may be subject to adjustment which involve additions or deductions. For instance: x commissions or royalties may need to be added to the price; x the internal transport (from the entry point to the final destination in the Community Customs Territory) must be deducted.
9 Please see the annexes for a sample of a DV1 form
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The customs authorities shall waive the requirement of all or part of the customs value declaration where: x the customs value of the imported goods in a consignment does not exceed EUR 10 000, provided that they do not constitute split or multiple consignments from the same consignor to the same consignee, or x the importations involved are of a non-commercial nature; or x the submission of the particulars in question is not necessary for the application of the Customs Tariff of the European Communities or where the customs duties provided for in the Tariff are not chargeable pursuant to specific customs provisions.
3) Freight insurance
The insurance is an agreement by which the insured is indemnified in the event of damages due to a risk covered in the policy. Insurance is all-important in the transport of goods because of its exposure to risks during handling, storing, loading or transporting cargo, and other rare risks, such as riots, strikes or terrorism.
There is a difference between the goods' transport insurance and the carrier's responsibility insurance. The transport insurance is a contract whose covered risks, fixed compensation and indemnity are let to the holder's choice. Nevertheless, the haulier's responsibility insurance is determined by different regulations depending on the means of transport, indemnity is limited by the weight and value of the goods and is only given if the transporter was unable to evade responsibility.
The insurance invoice is required for customs clearance only when the relevant data do not appear in the commercial invoice indicating the premium paid for insuring the merchandise.
The standard extent of the transporter's responsibility is laid down in the following international conventions:
1. Road freight
International transport of goods by road is governed by the Convention for the Contract of the International Carriage of Goods by Road (CMR Convention) signed in Geneva in 1956.
Under this Convention, the road haulier is not responsible for losses of or damages to the goods if he proves that they arise from:
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x the merchandise's own defect(s); x force majeure; x a fault by the loader or consignee.
There is no European Union's regulation regarding indemnifications for road freight.
2. The rail carrier
International transport of goods by rail is regulated by the the Convention concerning Intercarriage by Rail (CIM Convention), signed in Bern in 1980.
The rail carrier is not responsible for losses of or damages to the goods if he proves that they arise from:
x the merchandise's own defect(s); x force majeure; x a fault by the loader or consignee.
With reference to compensation, there is currently no European regulation. Indemnification is normally limited to a maximum amount per gross kilo lost or damaged. This system means that, for the most part, the company is unlikely to receive anything approaching the value of its goods.
3. The shipping company
The 1968 International Convention on Bill of Lading, better known as "The Hague Rules" or the "Brussels Convention" dictates the marine carrier's responsibilities when transporting international goods.
The shipping company is not responsible for losses of, or damage to, the goods if it proves that they arise from:
x the merchandise's own defects and loss in weight during transport; x a nautical mistake by the crew; x a fire; x if the ship is not seaworthy; x force majeure; x strikes or a lock-out; x a mistake by the loader; x hidden defects on board ship, which went unnoticed during rigorous inspection; x an attempt to save lives or goods at sea.
As far as compensation is concerned, there is currently no harmonisation at the European Union level. It is normally limited to a certain sum per kilogram
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of lost or damaged goods. This system causes the same problems as with rail accidents, the exporter is likely to lose much of the value of the goods.
4. The air carrier
The 1929 Warsaw Convention as well as the Montreal draft Treaty of 1975 determine that the air carrier is not responsible for damages or loss of goods if it is proved that:
x the carrier and associates took all the measures necessary to avoid the damage or that it was impossible for them to be taken (force majeure); x the losses arise from a pilotage or navigation mistake; x the injured party was the cause of the damage or contributed to it.
Concerning the injured party's indemnification, there is no European standard. Compensation is normally limited to a set amount per gross kilogram of damaged or lost goods.
The air carrier can state specific reservations at the time of receiving the cargo. These reservations will be written on the air consignment note (ACN) (air transport contract) and will be used as evidence. However, airlines will normally refuse dubious packages or those not corresponding to the ACN.
4) Customs Import Declaration (SAD) All goods imported into the European Union (EU) must be declared to the customs authorities of the respective Member State using the Single Administrative Document (SAD)10, which is the common import declaration form for all the Member States, laid down in the Community Customs Code (Regulation (EEC) 2913/92. The declaration must be drawn up in one of the official languages of the EU which is acceptable to the customs authorities of the Member State where the formalities are carried out. The SAD may be presented either by:
x Using an approved computerised system linked to Customs authorities; or x Lodging it with the designated Customs Office premises.
The main information that shall be declared is:
x Identifying data of the parties involved in the operation (importer, exporter, representative,....)
10 See annexes
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x Custom approved treatment (release for free circulation, release for consumption, temporary importation, transit,....) x Identifying data of the goods (Taric code, weight, units), location and packaging x Information referred to the means of transport x Data about country of origin, country of export and destination x Commercial and financial information (Incoterms, invoice value, invoice currency, exchange rate, insurance...) x List of documents associated to the SAD (Import licenses, inspection certificates, document of origin, transport document, commercial invoice...) x Declaration and method of payment of import taxes (tariff duties, VAT, Excises, etc)
The SAD set consists of eight copies, the operator completes all or part of the sheets depending on the type of operation. In the case of import generally three copies shall be used: one is to be retained by the authorities of the Member State in which arrival formalities are completed, other is used for statistical purposes by the Member State of destination and the last one is returned to the consignee after being stamped by the customs authority. Documents associated to the SAD According to the operation and the nature of the imported goods, additional documents shall be declared with the SAD and shall be presented together with it. The most important documents are:
x Documentary proof of origin, normally used to apply a tariff preferential treatment x Certificate confirming the special nature of the product x Transport Document x Commercial Invoice x Customs Value Declaration x Inspections Certificates (Health, Veterinary, Plant Health certificates) x Import Licenses x Community Surveillance Document x Cites Certificate x Documents to support a claim of a tariff quota x Documents required for Excises purposes x Evidence to support a claim to VAT relief
5) Freight documents Depending on the means of transport used, the following documents are to be filled in and presented to the customs authorities of the importing European Union (EU) Member State (MS) upon importation in order for the goods to be cleared:
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x Bill of Lading x FIATA Bill of Lading x Road Waybill (CMR) x Air Waybill (AWB) x Rail Waybill (CIM) x ATA Carnet x TIR Carnet
Bill of Lading The Bill of Lading (B/L) is a document issued by the shipping company to the operating shipper which acknowledges that the goods have been received on board serving as proof of receipt of the goods by the carrier obliging him to deliver the goods to the consignee. It contains the details of the goods, vessel and port of destination. It evidences the contract of carriage and conveys title to the goods, meaning that the bearer of the Bill of Lading is the owner of the goods. The Bill of Lading may be a negotiable document. A number of different types of bills of lading can be used. "Clean Bills of Lading" state that the goods have been received in an apparent good order and condition. "Unclean or Dirty Bills of Lading" indicate that the goods are damaged or in bad order, in this case, the financing bank may refuse to accept the consignor's documents. FIATA Bill of Lading The FIATA Bill of Lading is a document designed to be used as a multimodal or combined transport document with negotiable status which has been developed by the International Federation of Forwarding Agents' Associations (FIATA). Road Waybill (CMR) The road waybill is a document containing the details of the international transportation of goods by road, set out by the Convention for the Contract of the International Carriage of Goods by Road 1956 (the CMR Convention). It enables the consignor to have the goods at his disposal during the transportation. It must be issued in quadruplicate and signed by the consignor and the carrier. The first copy is intended for the consignor; the second remains in the possession of the carrier; and the third accompanies the goods and is delivered to the consignee. Usually, a CMR is issued for each vehicle. The CMR note is not a document of title and is non-negotiable. Air Waybill (AWB) The air waybill is a document proving the transport contract between the consignor and the carrier's company. It is issued by the carrier's agent and falls under the provisions of the Warsaw Convention. A single air waybill may
72 Proexport Colombia Tropical fruit in the Czech Republic
be used for multiple shipment of goods, it contains three originals and several extra copies. One original is kept by each of the parties involved in the transport (the consignor, the consignee and the carrier). The copies may be required at the airport of departure/destination, for the delivery and in some cases, for further freight carriers. The air waybill is a freight bill which evidences a contract of carriage and proves receipt of goods.. The IATA Standard Air Waybill is used by all carriers belonging to the International Air Transport Association (IATA) and it embodies standard conditions associated to those set out in the Warsaw Convention. Rail Waybill (CIM) The rail waybill (CIM) is a document required for the transportation of goods by rail. It is regulated by the Convention concerning International Carriage by Rail 1980 (COTIF-CIM). The CIM is issued by the carrier in five copies, the original accompanies the goods and the duplicate of the original is kept by the consignor and the three remaining copies are intended for internal purposes of the carrier. It is considered the rail transport contract. ATA Carnet ATA carnets are international customs documents issued by chambers of commerce in most major countries throughout the world for the purpose of allowing the temporary importation of goods, free of customs duties and taxes. ATA carnets can be issued for the following categories of goods: commercial samples and advertising film, goods for international exhibition and professional equipment.11 TIR Carnet TIR carnets are customs transit documents used for the international transport of goods a part of which has to be made by road. They allow the transport of goods under a procedure called the TIR procedure, laid down in the 1975 TIR Convention, signed under the auspices of the United Nations Economic Commission for Europe (UNECE)12 The TIR system requires that the goods travel in secure vehicles or containers, all duties and taxes at risk throughout the journey are covered by an internationally valid guarantee, the goods are accompanied by a TIR carnet, and customs control measures in the country of departure are accepted by the countries of transit and destination.
11 Further information may be obtained in the International Chamber of Commerce's website: http://www.iccwbo.org/index_ata.asp 12 Website; http://www.unece.org/trans/bcf/tir/welcome.html.
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6) Packing list
The packing list (P/L) is a commercial document accompanying the commercial invoice and the transport documents, and providing information on the imported items and the packaging details of each shipment (weight, dimensions, handling issues,etc.)
It is required for customs clearance as an inventory of the incoming cargo.
The data generally included are:
x Information on the exporter, the importer and the transport company x Date of issue x Number of the freight invoice x Type of packaging (drum, crate, carton, box, barrel, bag, etc.) x Number of packages x Content of each package (description of the goods and number of items per package) x Marks and numbers x Net weight, gross weight and measurement of the packages
No specific form is required. The packing list is to be prepared by the exporter according to standard business practice and it must be submitted in the original along with at least one copy. It generally needs not be signed. However, in practice, the original and the copy of the packing list are often signed. The packing list may be prepared in any language. However, a translation into English is recommended.
6.11 Import modalities or regimes involved in the process
There are various customs regimes available for the import of goods to the Czech Republic, depending on the type of goods and the purpose of their use.
Free circulation
Goods released for free circulation are subject to the applicable customs duty rate and import VAT. Once released to free circulation, goods are considered as Community goods for VAT purposes, i.e., their further sale is subject to VAT provisions.
74 Proexport Colombia Tropical fruit in the Czech Republic
Customs free zones
For certain transactions, import to a customs free zone is advantageous, as no customs duty or import VAT is payable at the time of transfer to a customs free zone. A customs free zone is a precisely determined area within the country that is not considered part of the Czech Republic for VAT purposes. Import from abroad to a customs free zone is not considered as an import to free circulation and is therefore not subject to Czech customs duty or VAT. Czech goods exported to a customs free zone are considered as exported, and therefore no VAT applies (zero-rated).
A customs free zone can be operated by a Czech business entity under the conditions stipulated in the Customs Code. A special license to operate a customs free zone is required, and only a few zones have been licensed. It is unusual for a license to operate a customs free zone to be granted solely for the internal use of the licensee. Customs free zones are generally operated by companies that provide the services of the zone to other business entities. Customs free zones are operated in Prague, Ostrava, Hradec Králové, and Pardubice.
Customs free zones are used primarily for warehousing, sales operations, and to carry out simple manufacturing operations or packaging.
Customs bonded warehouse
The Czech Customs Code also allows goods to be imported from abroad without customs duty or VAT to a customs bonded warehouse in a number of ways. Non- EU goods imported to a customs bonded warehouse are subject to customs duty and import VAT if the goods are released into free circulation in the Czech Republic.
There is generally no limit to the length of time in which goods can remain in a customs bonded warehouse; however, in certain cases, the Customs Office may state that goods can remain only for a specified time, after which they must be classified under another customs regime.
The transfer of ownership to goods in a customs bonded warehouse is possible only in a public bonded warehouse. Any transfer of ownership must be announced to the Customs Office without delay and supported with appropriate documentation.
On import to a customs bonded warehouse, the importer must provide the Customs Office with a guarantee for the customs debt, i.e., the amount of customs duty and VAT that would apply under free circulation.
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Transit regime
In general, goods under customs control are transported under the transit regime. Transport of such goods between EU customs offices takes place under the Community Transit regime (either external or internal). Transport of such goods from the Czech Republic to Ireland, Iceland, Norway, and Switzerland takes place under a Common Transit document. The transit regime ends when the goods reach the Customs Office and the import regime is declared. During the transit regime, the customs debt must be guaranteed.
6.12 Requirements for import of samples and accompanied luggage
The requirements for the import of samples are the same as for the general import of tropical fruit, because fruit is a consumable product.13
6.13 Website links to rules and regulations
europa.eu.int/scadplus/leg/en/s88000.htm#PRESENTATION export-help.cec.eu.int hexport- help.cec.eu.int/thdapp/taxes/MSServlet?action=output&taricCode=09011100 &prodLine=80&reporterId=CZ&partnerId=CO&simDate=20050601 www.euroservis.czechtrade.cz http://www.unctad.org/en/docs/itcdtsbmisc63_en.pdf http://www.defra.gov.uk/hort/hmi/common/standard.htm http://www.cbi.nl/accessguide/ www.europa.int/eur-lex
Other useful websites: www.thefruitpages.com Provides practical information on the characteristics of all kinds of fruit, especially exotic and citrus fruit. You can also subscribe to a free fruit newsletter and ask questions relating to fruit. (Language: English) www.fruitonline.com This site is devoted to the international fruit business. It offers a diverse array of free information. As you browse through its pages, you will find fruit prices, market analyses, statistics, fruit industry news and business opportunities. (Language: English, Spanish)
13 Source: Dutch Customs Office
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www.fintrac.com Fintrac is a market research, information technologies and technical consultancy firm, which provides specialized products and services to agribusiness, governments and associations worldwide. The web site contains market, trade, price and other information on fresh produce and also provides news and links to other sites. (Language: English, Spanish) www.agribusinessonline.com This internet site, which was created through the merger of Fintrac's Global Agribusiness Information Network and MarketAg, provides market prices, market information, company directories, calendar of events, crop guides and more than one thousand links to market research, statistics, regulations, associations and many other organizations relevant to the fresh produce trade. (Language: English) www.freshinfo.com The web site of the magazine Fresh Produce Journal provides daily news, information on events and an archive of news and features plus global produce data. Also contains an on-line fresh produce industry marketplace. (Language: English) faostat.fao.org/faostat/collections?subset=agriculture This internet site contains the statistical database of the FAO (Food and Agriculture Organization). It offers detailed information on production, imports and exports of several kinds of fruit and vegetables. (Language: English, French, Spanish, Arabic, Chinese) www.ifoam.org Web site of the International Federation of Organic Agriculture Movements. Information on fairs, projects, events, regulations, reports and magazines on organic agriculture. Also provides links to other international organizations and databases including a collection of Country Reports on Organic Agriculture. (Language: English) www.minlnv.nl The web site of the Dutch Ministry of Agriculture, Nature Management and Fishery provides information on policy and statistics on agriculture, nature management and fisheries. It also has links to other useful sites in Europe. For an overview of information by subject and country, please refer to www.minlnv.nl/agribusiness. (Language: English, Dutch) www.coleacp.org Web site of COLEACP (Europe-Africa-Caribbean-Pacific Liaison Committee), which promotes the export of fresh fruit, vegetables and flowers from the ACP countries. It provides links to the “Pesticides Initiative Programme,” which aims to
Proexport Colombia 77 Market Researches in Eastern Europe provide practical solutions to ACP fruit and vegetable producers' and exporters' adaptation difficulties, and to the “Harmonised Framework for Codes of Practice,” which promotes safe and responsible production in the horticultural sector in ACP countries. (Language: French,English) europa.eu.int/comm/food/index_en.html Web site of the European Union, with practical information on food safety and direct links to pesticide regulations, food labelling and many other food safety issues. (Language: Spanish, Danish, German, Dutch, English, French, Italian, Finnish, Swedish, Greek).
6.14 Flow chart of the process and related costs
6.14.1 Flow chart of the process and related costs
Customs Transportation of Goods guarantee goods to the inland Customs and Office Import documen ts Customs Declaration agent or for The Czech chosen subsidiary customs regime
The duties Confirmation of Handling of are paid or customs customs the custom declaration proceeding debt is that serves as secured VAT documentation
Source: Calculation by EUNITE BV
In general, only EU entities can clear goods for customs in the Czech Republic. Non-EU entities can carry out customs proceedings only on goods under the transit regime or under temporary admission. In other cases, foreign entities can clear goods for Czech customs only in exceptional cases with the permission of the Customs Office.
A foreign company exporting to the Czech Republic and wishing to import into the country must either establish a Czech subsidiary to handle importation or
78 Proexport Colombia Tropical fruit in the Czech Republic engage a customs agent to handle customs proceedings. It is usual practice that the Czech purchaser of imported goods will handle the customs proceedings.
When imported goods reach the EU border, they are released to the transit regime. The customs debt (all import duties that would apply on import under free circulation) must be secured with a customs guarantee at this time. The goods must then be transported to the inland Customs Office of final destination without delay. Here the goods are declared for the chosen customs regime based on the customs declaration filed by the importer (or his customs agent). The final customs debt assessed by the Customs Office is either paid or guaranteed, depending on the import regime and the conditions negotiated with the Customs Office.
If import duties are properly paid (or the customs debt is secured), the Customs Office issues a confirmed customs declaration, which serves as a VAT document for the reclaiming of import VAT. In general, import VAT is applied on the total declared customs value of imported goods and the applicable amount of customs duty and any other charges levied by the Customs Office (e.g., excise duty).
From 1st January 2005, importers can reclaim the amount of import VAT paid, by including the amount in their regular VAT returns, provided the importer is registered for Czech VAT.
VAT rates are the same as for domestic products, currently 19% or 5% (basic consumption goods like bakery). Importers registered for Czech VAT can normally recover import VAT costs, provided a valid customs declaration (tax document) is obtained from the Customs Office. The VAT rate for tropical fruit is currently 5%.
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6.15 Recommendations
The majority of the presented procedures is handled by the importer (clearing goods from customs, quality check, etc.). However, it is recommended to Columbian exporter to get acquainted with all the necessary rules and regulations. Since these are continuously changing, we recommend that you check the up-to-date situations with importers or the relevant organisations.
European market sets high demands on quality; therefore the quality of the product is the key to successful penetration of the European Union market. Following the harmonization of rules and regulations in the EU since January 1993, uniform quality regulations apply EU-wide and products that do not comply with these standards are barred.
Although not directly an obligatory standard for producers of fresh fruit and vegetables, exporters must be aware of the fact that in the field of processed fruit and vegetables, HACCP and ISO 9000 are strongly increasing in importance in Europe. The certification may be a vital factor in the selection process applied by trade partners in Europe.
There are no important statutory obligations at European Union level for the packaging of fresh fruit and vegetables. Nevertheless, it is recommended to comply with the wishes of the importer, who knows the demands of his buyers. This goes for the packaging material, as well as for the sizes of the packaging.
80 Proexport Colombia 7. Physical Access
As mentioned in the Chapter 5 - Distribution, exotic fruits and tropical fruit access the Czech Republic indirectly via the European importers. That means that currently there are no direct imports to Czech Republic, and Czech importers buy their fruits from European importers only in European harbors.
Therefore, in the case of international fresh fruit and vegetables trade, there are roughly two distinct sales channels through which exporting to Europe is possible. That means directly via the European importer, or indirectly via the independent Colombian export organization that takes care of the export to the EU.
The re-export of exotic or tropical fruit from the EU harbours to the Czech Republic is then taken care by local Czech importers that also take care of the transport to the Czech market. Czech importers / wholesales are mainly purchasing tropical goods at the stock markets adjacent to harbors in Rotterdam, Antwerp, Hamburg and Bremerhaven.
Thanks to the relatively short distance – on average 600 to 900 km, the transport is done almost solely by trucks, thus by road transport which allows for fast delivery to customers.
Distances: Rotterdam (NL) – Prague (CZ) 837 km – Brno (CZ) 1136 km Antwerp (B) - Prague (CZ) 824 km – Brno (CZ) 1123 km Hamburg/Bremerhaven (DE) - Prague (CZ) 530 km – Brno (CZ) 829 km
These are the border crossings (with Germany) available for international truck traffic in the respective directions: Cínovec–Altenberg and Rozvadov–Waidhaus. Both have non-stop operating hours.
The Czech Republic itself is relatively a small country - west-east distance is ca 550 km, north – south is ca 300 km. The road infrastructure is good and any transport within the country (e.g. between warehouses or warehouses and customers) is a matter of a few hours.
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Figure 7.1: Route Rotterdam (NL) – Prague - Brno
Figure 7.2: Route Antwerp (BE) – Prague – Brno
82 Proexport Colombia Tropical fruit in the Czech Republic
Figure 7.3: Hamburg/Bremerhaven (DE) – Prague – Brno
Figure 7.4: Road structure Czech Republic
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7.1 Available transportation infrastructure
Despite the fact that road haulage offers for the better option for the transport and distribution of tropical fruits to the Czech Republic, this chapter presents all available transport means.
The Czech Republic possesses one of the best transport networks in Central and Eastern Europe and, due to its historical development, also one of the densest transport networks, especially rail and road, in Europe. In addition, it has several airports for public traffic and, thanks to the Elbe-Moldau waterway, it also has a direct connection with the North Sea. Measured by the density of its transport network, the Czech Republic ranks among the most developed countries. The actual selection will be a compromise among these factors. There are four ways how to ship freight into the Czech Republic:
Road transport
Road transport, and especially camion transport belongs worldwide to the most progressively developing transport sectors. Road haulage is the dominant means of the European transport market. The reasons are clear: speed, accuracy, reliability, and easy availability and flexibility. The Czech market is approaching the European pattern very quickly – also here the road transport is the leading way of cargo haulage today.
Although the Czech roads are below the European standards, this is a very common way of shipping goods for shorter distances. The Czech Republic operates 518 km of highways, 353 km high-speed roads, and 55,477 km of other roads. Highways have the main traffic significance having 0.8% of the total length of state communication network and bringing 7% of the total transporting performance. Current 518 km represent about 50% of planned length of highways in 2010.Czech government approved a program for development of infrastructure, one of its main goals is to be linked to the European transportation network. It will increase truck transit capacity and connect all major Czech cities with high-quality roads. First class roads in the length of 6,407 km (11.5 % of the total length) recently assure the other 46% of the performance. The density of the basic road network is 0.70 km per km2 and when including local roads even 1.44 km per km2. For the use of motorways and dual carriageways there is a system of motorway tolls.
Rail transport
The railway network is very comprehensive (one of densest in the world) with most of the traffic catering to heavy industry. The most important railway routes (transit corridors) are under reconstruction to increase traffic speed. There are
84 Proexport Colombia Tropical fruit in the Czech Republic four International railway transit corridors in the Czech Republic. Total distance of rails in the Czech Republic is 9,444 km, of which 2,843 are electrified railways and 1,929 are double- and multi-railed. There are regular trains from the Czech Republic to Rotterdam and Hamburg running at least four times per week, which carry the majority of containers. However, railways are mainly used for transport from and to the Eastern countries.
Air transport
Not a very common way used for transporting goods, but due to the fast in-transit time, air freight is mostly used for highly perishable and low volume products. However, the costs for moving products by air tend to be higher than the cost of ocean transportation. Products are loaded either onto passenger planes or onto cargo planes on regular routes. These can be planes operated by airline companies as well as charter planes belonging to specialized companies. On scheduled flights, exporters are dependent on the freight space offered to them per stopover. The central airports covering the Czech Republic are Prague and Vienna (Austria). There are more airports in the Czech Republic but they are of a minor significance regarding cargo shipping. The biggest Air transporters are again the same companies as road transporters.
Water (river) transport
Due to the specific geographical location of the Czech Republic there has never been built a dense network of river ways. The river the Elbe is the main access for the land-locked Czech Republic to Hamburg and the other main ports of Northern Europe such as Rotterdam, Bremen, and Antwerp.
More important is the 260 km long Elbe-Moldau river way, built in the beginning of the last century, with a draft of 180 – 220 cm. Unfortunately, this inland water way is economically and operationally isolated from other European water ways by a 360 km long regulated stage of the river Elbe (from Ústí nad Labem to Magdeburg). At this point, a possibility to enter the network of European canals leading to sea ports exists. The Czech regulated stage is 40 kilometers long, with an allowed draft of only 80 cm, which makes it very vulnerable to seasonal water fluctuations, therefore ships can only be loaded to 50% of its capacity, or the activity has even to stop in dry summer months.
This dependence on water fluctuations and season shortage of water in the summer is a major back draft in the competitiveness of the water transport in the Czech Republic. Furthermore, it puts river shipping at a major disadvantage with today’s JIT delivery and logistics. If the draft of the Czech part will not be increased to the German level, it will be necessary to reload shipments from Czech vessels in German harbors to railways or road transport.
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As for sea transport, no ocean-going vessel is currently sailing under the Czech flag. Czech ship owners are dealing with sea transport only occasionally and rather cooperate with foreign partners, more experienced in this transport mode. Czech companies usually deliver to the nearest seaports. A company dealing with sea forwarding is for example NH Trans Ostrava.
Combined transport Combined transport is considered a combination of at least two transport modes within one transport chain, i.e. when goods stay on the original transport conveyance and the greater part of transport is realized on rail or waterways. It is the most spread form, the transport in containers, swap bodies or replaceable trailers – this is a so-called unaccompanied transport. The other variation is accompanied transport – the transport of camions including the driver.
The following rail routes for combined transport are leading through the area of the Czech Republic:
C-E 55 (Bad Schandau, D)- DČþín – Praha C-E 551 Praha – Horní DvoĜištČ – (Summerau, D) C-E 61 (Bad Schandau, D) – DČþín – Nymburk – Kolín – Brno - BĜeclav – (Bratislava–Komárno– Rusovce, SK) E-E 65 (Zebrzydowice. PL) – Petrovice u Karviné – Ostrava – BĜeclav – (Bernhardsthal, A) C 65 (C 59/1) (Zawidow, PL) – Frýdlant – Turnov – Praha C-E 40 (Schirning, D) – Cheb – PlzeĖ – Praha – Kolín – Hranice na MoravČ – Ostrava - (Žilina, Košice, ýierna nad Tisou, SK) – Hranicena MoravČ – Horní Lideþ – (Púchov)
Although the volume of combined transport is gradually growing in the Czech Republic, it is still far from the volume and level of Western European countries. The new, modern systems of combined transport such as swap bodies or transport of only camion trailers by railway are not functioning in the Czech Republic yet. The combined transport in the Czech Republic is fully in the private sphere, and although the Ministry of Transport intents to support these new systems, there is a lack of interest from the side of the transporters and forwarders.
Table 7.1.1 Goods transport in the Czech Republic Goods transported 1995 1996 1997 1998 1999 2000 2001 (mil. tonnes) By rail 109 107 111 105 91 98 97 By road 579 686 522 471 448 415 438 By inland waterways 4.4 3.2 1.8 1.7 1.9 1.9 1.6 By air transport 0.018 0.014 0.014 0.013 0.017 0.019 0.016 By oil pipeline transport 7.1 9.0 9.2 9.2 8.1 8.3 8.7 Source: Ministry of Transport and Telecommunications
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7.2 Identification of ports, airports, roads – border passes – railways, waterways
Freight from overseas importers is often shipped to one of the big European ports and then forwarded to Czech Republic by land. For example, Rotterdam and Bremerhaven are two big centers where fruit is sold.
Two terminals for fresh fruit are located in Bremerhaven, where reefer ships and containers can be dispatched. Besides of distribution services, fruit requires temperature control. In Bremerhaven special ships, containers, railcars and trucks are available for fruit transport. Coldstores are used and the grade of ripening is monitored. Controlled atmosphere, created by adding nitrogen to the air in cooling chambers, influences the ripening process to meet the demand of the market. If required, ripening chambers of Bremerhaven Banana Terminal can speed-up ripening.
Transport of fruit in reefer containers by and train can be an alternative for the transport of fruit by road. Another advantage is that combined transport is a closed chain, which ensures the freshness of the products. It is estimated, that the use of reefer containers in closed logistical chains will continue to increase the coming years. Because the durability of products is extended, the need of fast transport decreases. As a result, for the transport of fresh products deep sea is chosen more often.
At the moment one third of the fruit that is transported worldwide is transported in reefer containers. According to the expectations this will be 43% in 2010. This development offers new possibilities for combined transport, particularly concerning sea, inland and rail transportation.
Recently, the possibility of rail transport of fresh import fruit from ECT Maasvlakte Rotterdam and the ZON Fresh park auction in Venlo, near the German border, is also being examined.
Table 7.2.1 Distances and road routes from the most important ports to Prague, which is the distribution centre of the Czech Republic
Port Country Distance to Prague(km) Amsterdam Netherlands 884 Rotterdam Netherlands 913 Bremerhaven Germany 674 Hamburg Germany 642 Gdansk Poland 852 Szczecin Poland 499 Source: Map of the Czech Republic
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Borders
The goods are to be transferred from the ports by land. As of the first day of EU membership the Czech customs authorities abolished routine customs checks of movement of goods across internal borders, i.e. the common border with other member states. Since the Czech Republic does not have any external EU borders (borders with non-EU member states), routine checks of movement of goods across the state border for customs and taxation purposes are maintained only at international airports.
Routine checks of movement of persons across the state border, i.e. checks of passports and visas by the Czech police force, are maintained provisionally at all borders.
These are the border crossings available for international truck traffic in the direction towards seaports. All of them have non-stop operating hours: x Náchod – Kudowa Slone x Rumburk – Neugersdorf x Cínovec – Altenberg x Rozvadov – Waidhaus
7.3 Description of status, operation, security, costs, distances, transportation arrangements and intercommunity customs
Once imported into the Czech Republic, most of the freight forwarders have their own storehouses (and ripening rooms) where they unload the freight, or deliver the fruits directly at a wholesaler’s storehouse (see also the chapter 5 – dsitribution). Also, frequently the deliveries are heading directly to the distribution centres of retail chains, or even directly to retail outlets.
The road transport is in this case the sole dominant way of transporting goods. Within the Czech Republic, the infrastructure supporting the distribution is widely spread. Distribution of the goods inside the country is simple due to its small area and extensive infrastructure.
Table 7.3.1 Driving distances between Brno, Prague and selected cities within the Czech Republic (in km)
Brno Ceske Hradec Karlovy Liberec Ostrava Pilsen Praha Budejovice Kralove Vary Brno X 220 145 336 306 187 297 203 Praha 203 158 108 143 101 393 108 X Source: www.skoda-auto.cz
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Table 7.3.2 The shortest driving distances between Prague and major European cities (km) Amsterdam Athens Barcelona Berlin Bern Bratislava Brussel Budapest 953 1 985 1 770 342 828 367 928 537 Copenhagen Dublin Helsinki Istanbul Lissabon London Madrid Marseilles 795 1 668 1 670 1 867 2 976 1 295 2 342 1 404 Milan München Oslo Paris Rome Stockholm Vienna Warsaw 891 398 1 794 1 061 1 323 1 438 298 617 Source: www.skoda-auto.cz
7.4 Identification of other handling and distribution infrastructure
Tropical and subtropical fruit (such as bananas, pineapples, citrus fruit, kiwifruit, mangoes, avocados, together with exotic fruit such as cherimoya, granadillas, guava, Japanese persimmons, starfruit, kumquats, lychees, papaya, passion fruit, ground cherries and others) has proved effective for transportation by containers .
Fruit requires temperature, humidity/moisture and ventilation conditions because respiration processes must be specifically controlled and dormancy temperatures must be established. Ventilation ensures, on the one hand, that the necessary oxygen is supplied and, on the other, that harmful gases (carbon dioxide, ethylene) are removed. Refrigerated containers with a fresh air supply and controlled atmosphere containers are the most suitable for the temperature- controlled transport of fruit.
Most kinds of fruit are harvested and transported at picking ripeness (preclimacteric). Harvesting at this stage means that only little time is available for transport. This shortcoming may, however, usually be overcome by using controlled atmosphere containers.
Following overview shows examples of the modalities of transport and storage for specific fruit types:
Bananas
According to retailers, bananas are an “impulsive purchase” because consumers cannot resist buying them when they are displayed in an unblemished condition. Yet bananas are delicate fruits that travel long distances, are easily bruised and need specialized facilities for ripening. An innovation that followed from the delivery of dormant bananas by refrigerated cargoes in ports is the use of ethylene to trigger the ripening process. Ripening consists of the production of sugar from starch (which gives the banana a sweeter taste), the softening of tissues and the destruction of chlorophyll that turns the skin yellow. It is a
Proexport Colombia 89 Market Researches in Eastern Europe complex operation that requires close monitoring and is labor intensive. Air temperature, humidity and gas composition need to be regulated constantly with the use of ventilation fans, and traders are progressively turning to computerized systems to automate the process.
Means of transport: Ship, truck, railroad Container transport: Refrigerated container with fresh air supply or controlled atmosphere Cargo handling: Because of its impact- and pressure-sensitivity, the fruit has to be handled with appropriate care. The required refrigeration temperature must always be maintained, even during cargo handling. In damp weather (rain, snow), the cargo must be protected from moisture, as there is otherwise a risk of premature spoilage. Stowage factor: 2.30 - 2.90 m3/t (corrugated board cartons) 3.63 - 3.90 m3/t (cartons) 3.40 – 3.68 m3/t (corrugated board cartons) Stowage space requirements: Cool, dry, good ventilation Cargo securing: Because of its considerable impact- and pressure- sensitivity, packages of this cargo must be secured in such a way that they are prevented from damaging each other. Spaces between packages or pallets must be filled, to prevent slippage or tipping. By selecting the correct packaging size or cargo unit (area module or area module multiple), holds can be tightly loaded (without spaces).
Avocados
Means of transport: Ship, truck, railroad, aircraft Container transport: Refrigerated container with fresh air supply or controlled atmosphere Cargo handling: Avocados are highly pressure- and impact-sensitive and appropriate care must therefore be taken during cargo handling. The cold chain must at all costs be maintained, since the cargo will otherwise spoil rapidly. In damp weather (rain, snow), the cargo must be protected from moisture, as there is otherwise a risk of premature spoilage. Stowage factor: 3.12 m3/t (fruit crates with padded inserts on pallets) 2.50 m3/t (in cartons), 2.38 m3/t (in trays) The stowage factor depends very much on weight categories and the packaging units used. Stowage space requirements: Cool, dry, well ventilated
90 Proexport Colombia Tropical fruit in the Czech Republic
Cargo securing: Because of its considerable impact- and pressure- sensitivity, packages of this cargo must be secured in such a way that they are prevented from damaging each other. Spaces between packages or pallets must be filled, to prevent slippage or tipping. By selecting the correct packaging size or cargo unit (area module or area module multiple), holds can be tightly loaded.
Mangoes
Means of transport: Aircraft, ship, truck, railroad Container transport: Refrigerated container with fresh air supply or controlled atmosphere. Cargo handling: Mangoes are highly pressure- and impact-sensitive and appropriate care must therefore be taken during cargo handling. The cold chain must at all costs be maintained, since the cargo will otherwise spoil rapidly. In damp weather (rain, snow), the cargo must be protected from moisture, as there is otherwise a risk of premature spoilage. Stowage factor: 2.27 - 2.55 m3/t (fruit crates), 2.26 - 2.83 m3/t Stowage space requirements: Cool, well ventilated Cargo securing: Because of its considerable impact- and pressure- sensitivity, packages of this cargo must be secured in such a way that they are prevented from damaging each other. Spaces between packages or pallets must be filled, to prevent slippage or tipping. By selecting the correct packaging size or cargo unit (area module or area module multiple), holds can be tightly loaded (without spaces).
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7.5 Identification of carriers that transport goods imported from Colombia
Most of the transporters offer complex transport services consisting of fast shipment, cold chain integrity and changing markets (seasonality and trends in consumer preferences).
CARGO LINE BOOKING SERVICE AREA FREQUENCY CARGO AGENT TYPE American APL 305-468- South America - Weekly Container President Line- 3100 West Coast APL American American Brazil, Peru, Monthly Container Transport Line/ Transport Line Colombia B&R Agencies 732-767-3050 Americas CSAV, Farovi Shipping US East Coast, US Weekly Container CCNI, APL, 305-373-4765 Gulf Coast, Hamburg Sud, V.Ship Agency South American - CMA-CGM 305-579-9236 West Coast APL 305-468- 3100 CMA CGM 305- 477-0216 Caicos Cargo Ltd Turks Island Bahamas, Turks & Weekly Container, Shipping Line Caicos Islands General 954-767-9990 Cargo
CCNI Compañía Agunsa Miami US East Coast, Weekly Container Chilena de 786-845-9212 South American- Navegación West Coast Interoceánica, S.A. China Shipping B&R Agencies Asia, Jamaica, USA Weekly Container Lines North 305-702-4343 East Coast America Chiquita- Great Great White Fleet USA, Central Weekly Container White Fleet 888-SAIL-GFW America, Europe CMA CGM CMA CGM 305- Caribbean, Far Weekly Container Caribbean Inc 477-0216 East, Europe Colombia Coastal Colombia Coastal US East Coast- On Inducement Container, Transport Ltd. Transport 305- Barge Service Project 591-1088 Cargo Crowley American Hamburg Süd Venezuela, South Weekly Container Transport/ North America, America-West Hamburg Sud Inc. Coast 305-471-7370 Crowley Liner Crowley Liner Caribbean, Central Weekly Container, Services Services 305- America Project
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CARGO LINE BOOKING SERVICE AREA FREQUENCY CARGO AGENT TYPE 470-4000 Cargo, RO/RO, Trailers Chilean Line- American South America - Weekly Container CSAV/Montemar Transportation West Coast, Group LLC Colombia 888-441-9908 Dockwise / United United Yacht Caribbean, Weekly Container Yacht Transport Transport 954- Mediterranean, 525-8707 Mexico, Canada Pacific Dole Ocean Liner Norton Lilly Costa Rica, Weekly Container Express International 888- Guatemala, 544-7262 Honduras East Coast of Strachan South America- Fortnightly General South America Shipping East Coast Cargo (ECSA)/ Company Zim, Hanjin, MOL 954-525-6164 and K-Line
Evergreen Evergreen Dominican Weekly Container, America Corp. America 305-572- Republic, Haiti General 2300 Cargo Frontier Liner Frontier Liner Colombia, Weekly Container, Services Services 305- Dominican General 471-7800 Republic Cargo
Hanjin Shipping Hanjin 305-594- South America, Weekly Container 0220 East Coast Hybur Shipping Hyde Shipping Belize, Mexico, Twice Weekly Container 305-913-4933 Honduras, South America- West Coast Interocean- Trinity Interocean 305- Colombia, Ecuador, Every 14 Days Container, Line 375-8004 Panama, Peru General Cargo King Ocean King Ocean Venezuela, Aruba, Weekly Container, Service Service 305-591- Cuaracao General 7595 Cargo Linea Amazonia Linea Amazonia Brazil, Colombia, Monthly Cargo Peruana (NAPSA) Peruana Peru, Manaus (NAPSA) Lloyd Triestino Evergreen South America, Weekly Container America 305-572- Caribbean, Far 2300 East , Europe Maersk Sealand Maersk Inc. 954- Caribbean,Central Weekly Container 525-0344 America, Europe, 305-220-6660 UK, Proexport Colombia 93 Market Researches in Eastern Europe
CARGO LINE BOOKING SERVICE AREA FREQUENCY CARGO AGENT TYPE Baltic, Middle East, Russia Mitsui OSK MOL Mitsui OSK MOL South American Weekly Container (America) Inc. (America) Inc. East Coast 954-423-2565 Montemar CSAV 305-591- South America, Weekly Container 0402 Central America, East Coast USA Navieras Ulices SCM Lines 305- Venezuela Weekly Container, 471-0058 Breakbulk SCM Lines SCM Lines 305- Mexico, Venezuela, Weekly Container, 471-0059 Gulf Coast USA LCL, Breakbulk Seafreight SeaFreight Aruba, Curacao, Weekly Container, Line/Strachan Agencies 305- Guyana, Jamaica, LCL, Shipping 592-6060 Suriname, Breakbulk Trinidad, Venezuela Sea-Star Line Sea Star Line, Inc Puerto Rico, Weekly Container, 800-422-2743 Caribbean, East Autos, Coast USA General Cargo
Solymar Solymar 305-477- Guatemala, Weekly Container, 3021 Honduras, General Nicaragua, El Cargo Salvador, Jamaica Trinity Shipping Trinity Shipping Colombia, Ecuador, Every 14 Days Container, Line, S.A. Line, S.A. 305- Panama, Peru General 888-2277 Cargo, Project Cargo Tropical Shipping Tropical Shipping Cayman Islands Weekly Container, 800-367-6200 General Cargo Source: Internal Resources
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7.6 Alternatives of transport and carriers providing services from Colombia
Next to the increasingly used combined (intemodal) container transport by the sea and rail, and option of transporting fruits is also by the air transport. This way is however comparatively very expensive, and is effective for use only fastly perishable fruits.
Czech Airlines Cargo a.s. Address: K Letišti, 160 00 Praha 6 – Ruzyne, Czech Republic Tel.: +420-220116 220 E-mail: [email protected] Activity: Freight transport Founded: 1993 Note: Company is selling its services via the numerous agencies local and well as worldwide. Their complete list is available at www.csa.cz/cs/cargo/car_smluvniagentury.htm
TAMPA – Transportes Aéreos Mercantiles Panamericanos S.A. Address: Aeropuerto José María de Córdoba, Medellín Colombia Tel: (57-4)-569-9200 Email: [email protected] Fleet: Boeing 767 F Activity: Cargo to South-America and USA Founded: 1973
Lineas Aereas Suramericanas S.A. Address: Av. Eldorado, entrada 2, interior 7, Bogotá, colombia Tel: (57-1)-413-8084 Email: [email protected] Fleet: Boeing 727 DC 9 Activity: cargo domestic, Mexico and the Caribbean Founded: 1972
Aerolineas ATC S.A. Address: Terminal de Carga Internacional, Bogotá, AA81001 Colombia Tel: (57-1)-414-8470 Email: [email protected] Fleet: Lockheed L101 1f, DC8 Activity: cargo in South-America, EU, USA
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7.7 Modes and systems of transport used for carrying merchandises from the main competing foreign countries.
In general the transport of fresh fruit between the areas of its production and its consumption is organized by specialized transport companies. The fruit is collected in the center of the major agricultural areas, then grouped together and dispatched.
With the exception of fruits grown in Europe, vast majority of tropical and exotic fruits are delivered to Europe by the sea transport, which counts also for all the competing countries. Then, the route of the goods from American countries is of course the same as suggested for imports from Colombia. Even imports from African and Asian countries are shipped to one of the European ports and then transported into the country by land.
7.8 International Freight or Transportation Costs
Road transport
In general, each haulier on the Czech market is free to set prices independently. The price depends on several factors: the type of goods, the quantity, the point of departure and destination, frequency of deliveries, etc. Prices are very flexible and are adjusted for each client separately, based on the factors listed above. It is obvious that full truck deliveries (33 Euro-pallets on a truck) on routine orders end up being the cheapest.
Table 7.8.1 Price indications for transport from the Netherlands to various cities in the Czech Republic, involving a single delivery by a fully loaded truck Departure point Destination in CZ Price in EUR Amsterdam Prague 700 – 1,120 Hamburg Prague 590 – 975 Source: Road transporters
Rail transport
The cargo transport is operated by CD Cargo a.s. a daughter company of Czech Railways. There are regular trains from the Czech Republic to Rotterdam and Hamburg (four or more times per week), which carry the majority of containers. The general tariffs of the Czech Railways are too high and therefore not attractive. In case of transporting more than 50 containers per year it is possible to obtain considerable discounts. These have to be negotiated with the Czech Railways.
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Table 7.8.2 Example of prices for transporting 40 tons of goods by rail from Amsterdam to four major destinations in the Czech Republic. using one whole wagon
Departure point Destination in CR Price in EUR Amsterdam Prague 3.190 Hamburg Prague 2.680
Source: Czech Railways
Contact to Czech Railway Cargo operators: +420 972 765 242
Air transport
Air cargo transport is commondlly used for tropical fruit transport, but is quite expensive. As stated by the Czech Airlines the price of shipping one ton of material from Bogotá to Prague is ca USD4.18 (EUR3.44) per kg. This price doesn’t include additional shipping costs, such as loading and unloading. In the case of regular service use, individual prices might be arranged
Water transport
The dependence on water fluctuations and season shortage of water in the summer is a major back draft in the competitiveness of the water transport in the Czech Republic. Furthermore, it puts river shipping at a major disadvantage with today’s JIT delivery and logistics. Until the draft of the Czech part is increased to the German level, it is necessary to reload shipments from Czech vessels in German harbors to railways or road transport.
The public ports are Prague – LibeĖ, Prague – Holešovice, Prague-Smíchov, Prague-Radotín, DČþín-Loubí, DČþín-RozbČlesy, MČlník, Kolín and Ústí nad Labem, administered by Prague-based port operation and logistic company ýeské pĜístavy
It is rather difficult to state some general prices of water transport, since the price is dependent on various factors. However, the orientation price of transport of loose goods between Czech port MČlník (by Prague) and Rotterdam (as stated by ýSPL) is around € 20-23 per tonne.
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7.9 Costs of transportation from Colombia and main competing countries for the three types of cargo (loose cargo, general cargo, refrigerated cargo) in each modality of transport.14
The costs of logistic services within Europe for transporting goods from competing countries are the same as for Colombian goods. See sections 7.7 and 7.8.
7.10 Other costs involved in international physical distribution
Hamburg/Bremerhaven Rotterdam Sluice fee EUR 80 EUR 36-120 Container return EUR 180-290/20´ cont. EUR 430-509/20´ cont. EUR 330-510/40´ cont. EUR 690-840/40´ cont. Drop off EUR 100-330 / cont. EUR 100-330/cont. THC in the port EUR 170 EUR 170 + the costs for processing the container apr. 100 Euro Source: Internal resources
Custom strorehouse storage – ca € 0.26 - 0.50/m2 per day Loading/Unloading – € 0.33 + VAT/ 100 Kg
14 An overview of the transportation costs will only be given for the logistic services within Europe. With this is meant the local distribution agencies within Europe. This overview will not include the logistic services from Colombia till arrival in Europe. We assume that goods will arrive by boat at the port in Rotterdam or by plane at Schiphol, Amsterdam. Information about this kind of transport can be found at the PROEXPORT website.
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7.11 Physical distribution services address book
Air transport The information presented hereinafter only contains general information, as there are no fruits imported by air from Colombia to the Czech Republic
Czech Airports Administration Prague-RuzynČ 160 08 Prague 6 ýeská správa letišĢ s.p. Tel.: +420-220 111 111 Fax: +420-235 350 922 E-mail: [email protected] www.csl.cz K letišti 160 08 Prague 6 - RuzynČ Tel.: +420-220 112 022 ýeské aerolinie (Czech Airlines) Fax: +420-220 112 553 E-mail: [email protected] www.csa.cz Airport RuzynČ Tel.: +420-220 113 046 ýSA Cargo a.s. Fax: +420-220 114 946 E-mail: [email protected] www.csacargo.cz Bubenská 47 170 00 Prague 7 Silver Air spol. s r.o. Tel.: +420-233 374 596 - small aircargo company Fax.: +420-233 371 179 E-mail: [email protected] www.silverair.cz Tovaþovská 300 Vera Air Transport s.r.o. 750 00 PĜerov Tel.: +420-581 210 777
Customs storehouses The information presented hereafter concerns general information, as there are no customs storehouses used for highly perishable products, including (tropical) fruits.
ModĜanská 98, Praha 4 - ModĜany Tel: +420 226 201 000, A1 Transport & Logistic Fax: +420 226 201 025 Email: [email protected] www.a-1.cz ModĜanská (Mezi vodami) 1560 143 00 Praha 4 - ModĜany Adico spol. s r.o. Areál Chirana Tel.: +420 241 774 649, +420 241 774 650
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Fax: +420 241 773 526, +420 244 401 592 Email: [email protected] www.adico.cz MeziĜíþsská 100 756 61 Rožnov p.R. Canton spol. s r.o. Tel.: 571 655 311 www.cantoncs.cz Nákladové nádraží Praha - Žižkov Jana Želivského2, 130 00 Praha 3 CESS s.r.o Tel.: 222 730 130, 222 730 132 Fax: 222 730 000 [email protected] Expeditors International CR s.r.o. Aviaticka 12 160 08 Prague 6 - Ruzyne Expeditors International CR s.r.o. Czech Republic Tel: 420 233 090 300 www.expeditors.com Domažlická 172, 318 04 PlzeĖ Tel: +420-377 152 010, GERLACH spol. s r.o. Fax: +420-377 152 018 www.gerlach.cz Hrdinova 2043 39301 PelhĜimov GOLDSERVICE Tel.: +420 / 565 / 303111 Email: [email protected] www.goldservice.cz Kutnohorská 288 109 03 Praha 10 ICS - Intercontinental Cargo Services, a.s. Tel: 272 703 040 Email: [email protected] www.icstransport.cz JUBEL spol. s r.o. U Továren 256/14 102 00 Praha 10 JUBEL s.r.o. Tel: 296 365 333 Email: [email protected] www.jubel.cz 274 01 Slaný, Dražkovická 627 Tel.: +420 312-52 25 48, 52 00 94-5 Merx s.r.o. Fax: +420 312-52 29 79 www.merx.cz Krátká 175 252 25 Zbuzany R.C.D. tel./fax: 257960636 www.r-c-d.cz Na Moráni 17, 128 00 Praha 2 Servant a.s. Tel.: +420 224 919 706 Fax: +420 224 923 853
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Email: [email protected] www.servant.cz Biskupský dvĤr 7 1100 Praha 1 ST-Stakon a.s. Tel: +420 221 703 210 E-mail: [email protected] www.st-stakon.com/uk/ MILADY HORÁKOVÉ 2724 272 01 KLADNO Tel: 312 686 137 S & V STOCK s.r.o. Email: [email protected] www.sv-stock.cz
Free trade zones The information hereafter only concerns general information, as there are no free trade zones used in trading or handling of fruits.
Prague-RuzynČ 160 08 Prague 6 Tel.: +420-220 111 111 Czech Airports Administration Fax: +420-235 350 922 E-mail: [email protected] www.csl.cz Nádražní 142/20 70200 Ostrava 2 Tel.: +420 597 471 536 Free zone Ostrava Fax: +420 597 471 531 E-mail: [email protected] www.freezone.cz K Hrušovu 2 10203 Praha 10 Tel.: +420 844 555 588 ýechofracht, a.s. Fax: +420 281 004 613 E-mail: [email protected] www.cechofracht.cz Hradební 1021/19 Senzo Cheb 35002 Cheb 2 Tel.: +420 354 432 643 PĜelouþská 251 53006 Pardubice 6 Free zone Pardubice a.s. Tel.: +420 466 971 033 Fax: +420 466 971 036 E-mail: [email protected] PrĤmyslová 1000 73961 TĜinec 1 TĜinecké železárny, a.s. Tel.: +420 558 531 111 Fax: +420 558 331 831 http://www.trz.cz
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TiskaĜská 563/6 10800 Praha 108 ESCES, s.r.o. Tel.: +420 272 702 037 Fax: +420 272 703 732 Hrotovická 1202/27 67401 TĜebíþ 1 Tel.: +420 568 840 216 SPEDQUICK TĜebíþ, s.r.o. Fax: +420 568 840 216 E-mail: [email protected] www.spedquicktrb.cz Máchova 451 36461 Teplá Tel.: +420 353 392 670 RMV Trans, a.s. Fax.:+420 353 392 710 Email: [email protected] www.rmvtrans.cz Vážní 857 50003 Hradec Králové 3 Merka Spedition, s.r.o. Tel.: +420 495 406 121 Fax: +420 495 406 130
Storehouses and logistic centers In the case of (tropical) fruits, importers and wholesales generally use own warehouse from where products are distributed directly.
LodČnická 963 691 23 PohoĜelice Tel.: +420-220 185 342 Tibbet & Britten CZ a.s. Fax: +420-220 185 280 E-mail: [email protected] www.tbcz.cz Nám. Svatopluka ýecha 3/516 702 00 Ostrava Tel.: +420-596 279 211 Danzas s.r.o. Fax: +420-596 279 260 E-mail: [email protected] www.cz.danzas.com Jana Želivského 2 130 00 Prague 3 Tel.: +420-222 802 111 Setto Spedition s.r.o. Fax: +420-222 802 190 E-mail: [email protected] www.setto.cz
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Surface carriers
Most of these companies offer sea cargo shipping as well. AS for fruits, all of the mentioned companies are large forwarders and able to provide services also for the transport of fresh fruits, directly with own cars, via own subcontractors or with spedition. The last 3 companies mentioned – L-Bohemia, LNC Group and Smejkal are local road hauliers specialized in food, fruit and vegetable transport. Railways are not commonly used for the transport of fruit in the Czech Republic.
Ul. 1.pluku 8 - 10 CZ 186 30 Praha 8 Association of Forwarding and Logistics Tel: +420 224 891 303 of the Czech Republic Email: [email protected] http://www.sslczech.cz/index.en.html NábĜeží Ludvíka Svobody 1222/12 110 15 Prague 1 Tel.:+420-972 211 111 Czech Railways Fax: +420-222 328 784 E-mail: [email protected] www.cdrail.cz Tel : +420 596 111 380, +420 972 765 540 Fax : +420 972 765 242 Czech Railways cargo transport Email: [email protected] http://www.cdcargo.cz/cdcargo/index.php?id=1 Airport Logistics Park Knezeves 185 Maurice Ward & Co. s.r.o 252 68, Praha-Zapad, Stredokluky Tel: +420 233 097 793 www.mauriceward.com ýechofracht a. s. Opletalova 37/1284 111 21 Praha 1 ýechofracht a. s. ýeská republika Tel: +420 281 004 111 www.cechofracht.cz Mezinárodní zasílatelství, s.r.o. PrĤmyslová 829 BIRKART CR 293 06 Mladá Boleslav Tel: +420 326 718 034 www.birkart.cz K Vypichu 1087, 25219 Rudná u Prahy, Schenker spol. s r. o. Tel.: +420 311 711 111, 501 www.schenker.cz/en/ P.O.Box 20, Aviatická 12/1048 CZ -160 08 Praha 6-Ruzyne Cargo Partner CR s.r.o Tel.: +420/2/2011-6500 Fax: +420/2/2011-3543 www.cargo-partner.com
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Business Park KošíĜe Jinonická 80 158 00 Praha 5 C.D.O. PRAGUE, s.r.o. tel.: +420 296 554 262 fax: +420 296 554 302 [email protected] www.cdo.cz Za Žoskou 2090, 288 02 NYMBURK Tel. 325 516 292, Dymofracht Fax: 325 516 294, Email: [email protected] www.dymofracht.cz Sokolovská 104/85 186 00 Praha 8 L-Bohemia, s.r.o. DIý 008 - 26142767 tel/fax: ++420 2 24817191, 24817255 tel/fax: ++420 2 24812659 E-mail: [email protected] U Plynárny 99 101 36 Praha 10 Tel.: 267 101 540 LNC Group, s.r.o. Fax: 267 101 538 E-mail: [email protected] www.frigo.cz Dobré Pole 57 691 81 Dobré Pole SMEJKAL s.r.o. Tel: +420 606 313 494 Fax: +420 519 514 592 E-Mail: [email protected]
Water inland transport This type of transport is currently not used for the transport of fruits and vegetables and as such only general information is presented below.
Jankovcova 6 170 04 Prague 7 - Holešovice Tel.: +420-266 797 146 ýeské pĜístavy a.s. Fax: +420-220 802 857 E-mail:[email protected], www.czechports.cz Karla ýapka 211/1 40 591 DČþín 1 ýeskoslovenská Plavba Labská a.s. Tel.: +420-412 561 111 – the main provider of waterway transport in Fax: +420-412 510 140 the Czech Republic E-mail: [email protected] www.cspl.cz EVD-Sped, s.r.o. Nad Vavrouškou 19 – the second biggest shipper in the country 181 00 Prague 8
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Tel.: +420-283 850 840 Fax: +420-283 850 839 E-mail: [email protected] www.evd.cz PodČbradova 28 702 00 Ostrava 1 Tel.: +420-596 279 411 NH Trans Ostrava Fax: +420-596 279 401 E-mail: [email protected] www.nh-trans.cz
Combined transport
The following companies operate their own terminals
Podleská 926 104 00 Prague 10 Tel.: +420-267 710 625 METRANS a.s. Fax: +420-267 710 624 E-mail: [email protected] www.metrans.cz Žerotínova 1132/34 130 00 Prague 3 Tel.: +420-220 193 200 ýSKD - INTRANS a.s. Fax: +420-220 193 200 E-mail: [email protected] www.intrans.cz Opletalova 6 113 76 Prague 1 Tel.: +420-224 241 578 BOHEMIAKOMBI s.r.o. Fax: +420-224 241 580 E-mail: [email protected] www.bohemiakombi.cz
Banks
Ing Miroslav Klima, International Financing, Tel.: (+420) 224 118 034, Ceskoslovenska obchodni banka (CSOB) Fax: (+420) 224 113 367 e-mail: [email protected] www.csob.cz Ing Jana Svabenska, International Financing, Tel.: (+420) 222 432 018, Komercni banka Fax: (+420) 224 229 330 e-mail: [email protected] www.koba.cz
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Mr. Petr Merezko, Structured Finance, Tel.: (+420) 224 127 204, Zivnostenska banka Fax: (+420) 224 127 273 e-mail: [email protected], www.ziba.cz Mr. Miroslav Lukac, Corporate Finance, Tel.: (+420) 233 061 837, Citibank Fax: (+420) 233 061 614 e-mail: [email protected], www.citibank.cz Ms. Sona Slavceva, Financial Director, Tel.: (+420) 224 441 111, Fax: (+420) 224 GE Capital Bank a.s. 441 500 e-mail: [email protected], www.gecb.cz
Other useful addresses BudČjovická 7 14096 Praha 4 General Directorate of Customs +420261331111 www.cs.mfcr.cz
7.12 Others
There are no other specific regulations or features regarding transport and logistics in the Czech Republic. The freight forwarders provide full service. Including paperwork, insurance, tariffing and storaging. It’s strongly recommended to rely on their experience and use the offered services. The carriers’ communication is fairly responsive. Once the order is given they are able to present the offer within two days. In this offer comprehensive information and prices are listed.
106 Proexport Colombia 8. Recommendations to the exporter
The most important distribution channels of fresh fruit and vegetables are importers. Importers not only have experience and knowledge of the international market, they also have strong relationships with suppliers and buyers all over the world. In regard to serving supermarket organisations, the importer will now more and more emphasise his function as co-ordinator of the stream of goods to final destinations. He has to play a more specialised role as quality controller and also as logistics service provider.
Therefore, developing country exporters are advised to contact and co-operate with specialised European importers for the distribution of their products. This applies especially to cases where it concerns tropical fruit varieties and off- season products. Because of their favourable, geographical location, many EU importers even have the possibility to export imported products to other European countries.
Organically grown products are of increasing awareness on the European market, giving the producers of organic fruits and interesting opportunity to penetrate the market successfully. Such producers can also get themselves listed as suppliers on www.green-tradenet.de and on www.greentrade.net, two internet sites where suppliers and buyers of organic products come together on a virtual market place. Similarly so-called fair trade labels can also become an unique selling point of particular producer.
If trade in lesser-known exotic products is considered, marketing strategies should specifically take into consideration the education of parties involved in the distribution chain, as well as final consumers.
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Annexes
Annex 1: Certificate of origin form A
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Annex 2: Plant health movement document
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Annex 3: Phytosanitary certificate
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Annex 4: DV1 Form
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Annex 5: Single Administrative Document (SAD)
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Annex 6: Photo documentation
Marketing the Fyffes brand in a supermarket
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Annex 7: Companies Directories
Companies Directory Country: Czech Republic Sector: Tropical Fruit Página Web Idioma Idioma del Información General de Empresas Requiere Información Contenido Disponible sin Costo Registro Adicional con Costo Directorios Europeos http://www.kompass.com/ E E; I; O Contenido: Nombre de la empresa; SI SI País; Dirección; Teléfono; Fax; Sitio Web; Numero de empleados; Fecha de constitución; Capital; No de registro; Identificación del IVA. Descripción: Información de empresas para 70 Países. Opciones de Búsqueda: País; Productos/Servicios; Empresa; Sector; Subsector; Marcas; Dirigentes; Códigos. http://worldyellowpages.com/ I I Contenido: Nombre de la empresa; SI NO País; Dirección; Teléfono; Fax; E- mail; Sitio Web; Descripción corta de la empresa y sus productos. Descripción: Paginas amarillas - Lista alfabética de productos y servicios; lista de empresas; Permite acceder a las páginas amarillas de cada País; Acceso a una pagina de Información de negocios con algunos Países entre los que se encuentran Polonia y Republica Checa. Opciones de Búsqueda: País; Productos/Servicios; Empresa; Listado de productos; Listado de países; Oportunidades de negocio con algunos países. http://www.europages.com/ E; I; O E; I; O Contenido: Nombre de la empresa; SI SI País; Dirección; Teléfono; Fax; Sitio Web; Productos/Servicios. Descripción: Directorio en línea (en 25 idiomas) de la empresas europeas mas dinámicas; Consulta gratuita de las licitaciones publicadas en el diario oficial de la Unión Europea; Directorio impreso (en 6 idiomas) de los compradores europeos mas dinámicos; Directorio en CD-Rom (en 14 idiomas) de la empresas europeas mas dinámicas. Permite contactar las empresa vía intra mail. Opciones de Búsqueda: Productos/Servicios; Empresa; Temática; País; Sector. Directorios Checos www.wlw.de I; A Contenido: Nombre de la Empresa; NO NO Dirección; Código postal; Ciudad; Teléfono; Gerente/Administrador; Productos/Servicios; Tipo de empresa. Descripción: Portal de contacto para negocios entre empresas. Opciones de Búsqueda: Productos/Servicios; Empresa.
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Companies Directory Country: Czech Republic Sector: Tropical Fruit Página Web Idioma Idioma del Información General de Empresas Requiere Información Contenido Disponible sin Costo Registro Adicional con Costo http://www.edb.cz/ C; I; A C; I; A Contenido: Nombre de la empresa; NO NO Dirección; Ciudad; Distrito; País; Código postal; VAT; Marcas registradas; Empleados; Retorno; Teléfono; Fax; E-mail; Sitio Web; Contacto; Productos/Servicios; Clasificación de la producción. Descripción: Información de empresas checas. Permite contactar las empresa vía mail; Permite solicitar Información adicional de las empresas. Opciones de Búsqueda: Nombre; Actividad; Región; Tipo de empresa. http://www.inform.cz/ I C; I Contenido: Nombre de la empresa; NO NO Dirección; Ciudad; Distrito; País; ID; VAT; Teléfono; Fax; Celular; E-mail; Sitio Web; Contacto y Cargo; Descripción de la actividad; Productos/Servicios; Categorías; Estructura; Palabras clave; Registro comercial; Certificación; Información de importación y exportación; Información financiera (Cifras de Capital, Retorno, Numero de empleados, Importación, Exportación); Información de Mercadeo (Fecha de constitución, Tipo de empresa). Descripción: Información de empresas checas general e Información de empresas de importación y exportación. Tiene un link de acceso al registro comercial de la empresa. Opciones de Búsqueda: Empresa; Exportación/Importación; Texto; Región. http://www.spcr.cz/ C; I C; I Contenido: Nombre; Dirección; NO NO Ciudad; Teléfono; Fax; E-mail; Sitio Web; Contacto/Representante; Teléfono del contacto; Fax del contacto; Tipo de empresa; Oficina de registro; Retorno; Capital; Numero de empleados; Numero de registro; Impuestos ID; Productos/Servicios; NACE; Rama de la asociación a la que esta adscrita la empresa. Descripción: Confederación de industria de la Republica Checa que contiene Información de empleadores emprendedores del sector industrial y de transporte. Link de acceso a: IOE (Organización Intenacional de Empleadores ); UNICE (Union of Industrial and Employers' Confederations of Europe); BIAC (Business and Industry Advisory Committee to OECD). Listado de las empresas miembro de la organización. Opciones de Búsqueda: Miembros por lista alfabética; Lista completa;
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Companies Directory Country: Czech Republic Sector: Tropical Fruit Página Web Idioma Idioma del Información General de Empresas Requiere Información Contenido Disponible sin Costo Registro Adicional con Costo Texto.
http://zlatestranky.cz/ C; I C; I Contenido: Nombre; Dirección; NO NO Ciudad; Distrito; Teléfono; Celular; Información adicional para algunas empresas (E-mail, Sitio Web). Descripción: Directorio telefónico idnes.cz. Opciones de Búsqueda: Directorio; Negocios; Texto; Ciudad; Distrito; Dirección; Información requerida; Sector. http://www.seznam.cz/ C C Contenido: Nombre; Descripción SI NO corta de la empresa; Productos/Servicios; Dirección; Ciudad; Mapa; Teléfono; Fax; E-mail; Sitio Web; Contacto; Teléfono del contacto; E-mail del contacto. Descripción: Buscador con Información sobre las empresas Checas. Permite contactar las empresa vía intra mail. Opciones de Búsqueda: Empresa; Texto; Región; Sector; Productos/Servicios. Directorios por Sector http://www.foodtrader.com/ I I Contenido: Información sobre SI SI potenciales compradores. Descripción: Pagina especializada en las industrias de alimentos y agricultura. Opciones de Búsqueda: Productos/Servicios; Categorías
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Companies Directory Country: Czech Republic Sector: Tropical Fruit Página Web Idioma Idioma del Información General de Empresas Requiere Información Contenido Disponible sin Costo Registro Adicional con Costo http://www.foodnet.cz/ C; I C; I Contenido: Nombre de la empresa; NO NO Dirección; Teléfono; Fax; E-mail; Sitio Web; Numero de Identificación; Contacto; Cargo del contacto; Teléfono del contacto; E-mail del contacto; Campos de negocio; Links; Fecha de registro; Fecha de constitución; Descripción; Tipo de empresa. Descripción: Pagina de la Federación Checa de Alimentos y Bebidas (FFDI). Se encuentra la Información de las empresas miembro de la FFDI. Opciones de Búsqueda: FFDI DR; Lista de miembros; Empresas http://www.foodnavigator.com/ I I Contenido: Descripción corta de la NO NO empresa y sus líneas de productos; Sitio Web. Descripción: Página de noticias de Alimentos y Bebidas en Europa. Hay una suscripción gratuita para recibir vía e-mail noticias sobre las 100 empresas top de la industria de bebidas y alimentos. Opciones de Búsqueda: Noticias de Productos y proveedores; Por patrocinador. http://www.efosz.hu/ H; I H; I Contenido: Nombre de la empresa; NO NO Sitio Web. Descripción: Pagina de la Federación Húngara de la Industria de Alimentos. Cuenta con un listado reducido de empresas con su sitio Web, sin ninguna Información adicional. Opciones de Búsqueda: Empresas de alimentos; Productos/Servicios. Idioma: E: Español; I: Ingles; A: Alemán; C: Checo; H: Húngaro; P: Polaco; O: Otros; W: Idioma del Sitio Web
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