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What’s in the EPA What’s in the EPA for Food & for Food &

Beverage sectorBeverage sector

FBIDC /MTI Seminar Opportunities & Challenges in the EU

March 23, 2011

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OUTLINEOUTLINE

• EPA facts• Liberalization Schedule• Rules of Origin – Protocol I• Questions

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IntroductionIntroduction

• Objectives

• To provide information about the EPA specific to the Food & Beverage Sector;

• To assist in interpretation of the EPA Liberalization Schedule;

Where Does Food and Where Does Food and Beverage Fit?Beverage Fit?● Food and Beverage is a

target industry for diversification of the T&T economy.

● Includes : Agricultural products

Manufactured and processed foodstuff (including beverages)

Tobacco products

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EPA factsEPA facts

• Replaces the Cotonou Agreement; • Provides duty-free quota-free access to

European markets, with few exceptions;• Creates new trading relationship –

CARIFORUM States committed to open their markets to European imports over 25 years;

• Excludes sensitive products from liberalization

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Food and Beverage Food and Beverage SectorSector

● Linkages Agricultural production

sector Manufacturing sector Printing and packaging

sector Education

● Critical Success Factors Production efficiency Reliable source of raw

material Adherence to global

standards Compliance with

industry best practice Able regulatory and

legislative environment

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EPA BenefitsEPA Benefits

• Some inputs will be cheaper• Domestic production is protected• Closed collaboration between trade-

related institutions (EC and CARIFORUM)

• Funding from EDF

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EPA ProvisionsEPA Provisions

Exclusion from reduction• Annex II

• Chapter 93 – Arms and ammunition

• Sugar• EC may impose MFN duties on sugar exports

from CARIFORUM, in excess of 3.5 million tonnes, in a marketing year between October 1, 2009 – September 30, 2015, if imports cause a disturbance to EU sugar market.

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EPA ProvisionsEPA Provisions

Customs Duties etc.• Elimination of Customs Duties on EC goods, according to the

Schedule of Tariff Liberalization of the CARIFORUM States;• Surcharges imposed in connection with customs duties

remain until 10 years after signing (2018);• Phased reduction of surcharges to begin 8 years after signing

(2015);• Customs duties do not include internal taxes & charges,

antidumping countervailing or safeguard measures and other fees or charges imposed on imports or exports;

• Fees limited to cost of services provided.

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Implementation StatusImplementation Status

• Draft legislation approved by LRC in 2010;• National Liberalization Schedule amended in

2011 to reflect Motor Vehicles, parts & accessories;

• Draft legislation includes:• EPA text• EPA Liberalization Schedule• Ninth Schedule to Customs Act

EPA ProvisionsEPA Provisions

Development Cooperation/Technical Assistance

• Collaboration between national & regional authorities;

• Between EC and CARIFORUM Competent Authorities;

• Exchange of information;

• Facilitating participation of CARIFORUM states in international standard setting bodies;

• Trade Defence (Antidumping, Safeguards etc.);

• Agriculture & Fisheries;

• Technical Barriers to Trade;

• Sanitary & Phytosanitary Measures;

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LIBERALIZATION LIBERALIZATION

SCHEDULESCHEDULE

CARIFORUM Liberalization CARIFORUM Liberalization ScheduleSchedule• Appendix 1 to Annex III• Schedule for all CARIFORUM States• Divided into HS categories – HS2002 • Regional rate in bold• National variation listed below• Exclusions• 1301 pages in length

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National Liberalization National Liberalization ScheduleSchedule• Ninth Schedule to the Customs Act• Contains only products whose tariffs are to be

reduced• If your product is not there, see First Schedule• Ninth Schedule will be created by EPA Act.

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Essentials to use Essentials to use ScheduleSchedule• Basic knowledge of the Harmonized

System• The HS code for your finished product,

inputs to production, substitutes (finished, inputs).

• Note that Agreement uses HS 2002, but national legislation (Schedule) uses HS 2007 etc.

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ECONOMIC PARTNERSHIP ECONOMIC PARTNERSHIP AGREEMENT AGREEMENT

SCHEDULESCHEDULE

RULES OF ORIGIN

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Rules of OriginRules of Origin

• Protocol I• General Provisions on rules of origin• Annexes

• Annex II to Protocol I – product specific rules of origin

• Forms/certificates (Annexes III – VII)• Exclusions to cumulation

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Product Specific RulesProduct Specific Rules

• Wholly produced• Eg. Fish - All materials of Chapter 3 must be

wholly obtained• Value –added rules

• Eg. Preserved vegetables/fruits of 2006 – Manufacture in which the value of any materials of Chapter 17 used does not exceed 30% of the ex-works price of the product.

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Product specific rulesProduct specific rules

• Change of tariff heading rules• Eg. Potato chips (ex 2004) – Manufacture in

which all the materials used are classified within a heading other than that of the product

• Process rules• Eg. Vegetable flours (ex 1106) - Drying &

milling of leguminous vegetables of heading No. 0708

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Product specific rulesProduct specific rules

• Mixed rules• Eg. Edible fruits & Nuts (08) – Manufacture

in which: all the fruit & nuts used must be wholly obtained; the value of any materials of Chapter 17 used does not exceed 30% of the value of the ex-works price of the product.

• Majority of rules are wholly obtained rules

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Essentials to use Essentials to use Protocol 1Protocol 1• Basic knowledge of Harmonized system

(ex refers to part of a heading)• Specific rules are at 4-digit level• Know both the general & specific rules of

origin• Customs & Excise Division is certifying

authority for EPA. They will also verify proof of origin.

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QUESTIONSQUESTIONS

THANK YOU!THANK YOU!

ContactsMs. Trudy Lewis

Senior Trade Specialist

Level 14 Nicholas Tower

Tel: 623-2931/4 Ext 2113

Email: lewist@gov.tt

Website: www.tradeind.gov.tt

Ms. Krysta Ramrattan

Economist I

Level 14 Nicholas Tower

Tel: 623-2931/4 Ext. 2100

Email: ramrattank@gov.tt

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