Perspectives on the
French Caribbean Outermost
Regions (FCORS) - Doing Business
By Aaron Parke LLB; LEC; MSc.
A-Z Information Jamaica Limited
November 12, 2013
OUTLINE OF PRESENTATION
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Ease of doing business
Technical Barriers to Trade
The EU Standards and Certification
Conformity Assessment Procedures
Import Documentation
Labelling Requirements
Ease of doing business
• Relatively difficult to do business with the FCORs.
• However consider that in terms of the ranking in ease of
doing business France/FCORs rank 38 (2012 WB)
compared to CARICOM ( TT 66; JA 94; Bds 91; Dom 77;
Belize 106)
• Economies are ranked on their ease of doing business,
from 1 – 189. A high ranking on the ease of doing
business index means the regulatory environment is
more conducive to the starting and operation of a local
firms
Ease of doing Business Contd.
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Factors for ranking ease of doing business include;
Starting a Business
Dealing with construction Permits
Getting electricity
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading across Borders
Enforcing Contracts
Resolving Insolvency
Technical Barriers to Trade
• Technical barriers to trade (TBTs) are wide ranging measures
that countries use to regulate markets, protect their
consumers, or preserve their natural resources among other
objectives.
• They can also be used to discriminate against imports in
order to protect domestic industries. They are essentially a
category of nontariff barriers to trade.
Technical Barriers to Trade
Contd.
Major barriers to Trade with the FCORs
include;
• Language differences (English, Dutch,
Spanish and French)
• Inadequate transportation – lack of
availability and cost of services
• Challenges in meeting French/EU
Standards and technical requirements;
Technical Barriers to Trade
Contd.
• Lack of knowledge of the French System;
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Taxation
Market structure
Market intelligence
issues relating to Market entry strategy (pricing; market
positioning and promotion)
• Lack of on the ground representation in the French
Caribbean and CARIFORUM to assist Exporters in those
markets
Technical Barriers to Trade
Contd.
• Overall lack of market information that can guide
Exporters in taking meaningful decisions on
Opportunities in the outermost regions.
• The French and hence FCORs invariably apply
standards which are somewhat higher than
those of the EU.
• Recent experiences have indicated that perhaps
the greatest hurdle to increasing exports to the
EU relate to product standards and regulation
EU STANDARDS AND
CERTIFICATION
• The standards required for products in the
FCORs are developed in Europe and apply
throughout the European single market
• European Standard (EN) is a standard that has
been adopted by one of the three recognized
European Standards Organisations (ESOs): CEN,
CENELEC or ETSI
• Although rather technical and often unknown to
the public and media, they represent one of the
most important issues for businesses
EU STANDARDS AND
CERTIFICATION Contd.
• Prior to exporting, manufacturers have to
consider certification for the FCOR/EU market
• Certification is about conformity assessment
(testing and certification) in order to declare
compliance with EU regulatory requirements.
• For the majority of exported products,
compliance is visibly testified by the use of CE
marking. Use of standards is part of the
process
EU STANDARDS AND
CERTIFICATION Contd.
• Testing and certification for the Domestic, CARICOM and in some
cases the US market, is not sufficient to meet the requirements for
the EU market
• EU legislation harmonizes mandatory requirements for product
safety throughout the EU therefore a manufacturer only needs to go
through the process once and can then export to all 27 EU member
• Note the harmonized European EN standards
(http://ec.europa.eu/enterprise/policies/europeanstandards/harmonised-standards/index_en.htm); (CEN-European
Committee for Standardization); (ASTI(American National Standards
Institute)
EU STANDARDS AND
CERTIFICATION STEPS
• 1. Market research
• 2. Find the applicable directive (legislation)
(http://ec.europa.eu/enterprise/sectors_en.htm)
• 3. Determine the essential requirements in the
directive (usually Annex I)
EU STANDARDS AND
CERTIFICATION STEPS
• 4. Note the harmonized European EN standards
(http://ec.europa.eu/enterprise/policies/europeanstandards/harmonised-standards/index_en.htm); (CENEuropean Committee for Standardization);
• 5.Choose the appropriate conformity assessment module as
described in the directive’s annex or presented in flow charts
in the CE marking guidance booklet.
Information source
(www.ec.europa.eu/enterprise/policies/single-market-goods/
regulatory-policies-common-rules-for- Products/index_en.htm
or www.ec.europa.eu/CEmarking)
EU STANDARDS AND
CERTIFICATION STEPS
• 6. Locate Notified Bodies (accredited test
laboratories) – if required
• 7. Create a Technical File and Declaration of
Conformity and apply CE marking
• 8. Consider working with consultants in the
FCORs to complete registration
Conformity Assessment
Procedures
• Step 1: Determine which Directives apply
• Step 2: Determine what conformity processes apply
• Step 3: Determine what technical assessments apply. (This
step is derived for the Directives and the applicable
standards).
• Step 4: Prepare the technical reports and technical file. No
requirement to use a Notified Body. Self- assessment is
perfectly acceptable as is in house testing.
Conformity Assessment
Procedures Contd.
• Step 5: Sign a Declaration of Conformity/Incorporation
• Step 6: Mark the product with the CE mark and place it on the
market in the EU.
• Step 7: The Declaration of Conformity/Incorporation and
technical file are made available to the relevant EU authorities
on their demand, usually during an audit. These documents
may be held by the importer or manufacturer as Authorized
Representative or an agent appointed by the importer or
manufacturer. The technical file may be held outside of the
EU.
Conformity Assessment
Procedures Contd.
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EUROPEAN DECLARATION OF CONFORMITY
We, (Company name, Address, Phone, FAX) declare under our sole responsibility that the product
_________________________________________________________________________________
(name, type or model, lot, batch or serial number, possibly sources and numbers of items)
to which this declaration relates is in conformity with the following standard(s) or other normative document(s)
__________________________________________________________________________________
(title and/or number and date of issue of the standard(s) or other normative document(s)
(if applicable) following the provisions or_______________________________________________. Directive(s)
(Machinery, Electromagnetic Compatibility, etc.)
The Technical Construction File is maintained at: (give the address of the facility where the File is maintained).
The authorized representative located within the Community is:
_____________________________________________________________________________________________
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(name, address, phone, FAX)
<NOTE: The authorized representative must be located within one of the member states of the EEC.>
Per Annex II.B of the Machinery Directive (98/37/EC):
The machinery, product, assembly or sub-assembly covered by this Declaration of Conformity must not be put
into service until the machinery into which it is to be incorporated has been declared in conformity with the
provisions of the applicable Directive(s). This statement is only necessary where the product is to be
incorporated into a machine or system (e.g. a safety component)
Date of issue: .........................................
Place of issue: .........................................................
(Signature of authorized person)
(Typed name of authorized person
Conformity Assessment
Procedures Contd.
• Standards and certification and registration requirements are
normally high for;
• Processed Food products (foods generally)
• Chemicals substances (REACH)
• Cosmetics and personal care products
• Construction products
• Personal Protective products/equipment
• Packaging and Packaging waste
• N.B. Restrictions on the use of certain hazardous products
Some relevant standards for products
targeted for exports to the FCORs
1. Household Chemicals - Regulation 648/2004 updates and
consolidates existing Directives on detergents. It imposes a twotier testing regime on the biodegradability of the active
ingredients of detergents (known as surfactants).
• Regulation (EU) No 259/2012 amending Regulation (EC) No
648/2004 as regards the use of phosphates, other phosphorus
compounds in laundry and dishwasher detergents
• Biocides Directive 98/8/EC & Biocides and Regulation (EU)
528/2012
• Directive 75/324/EEC on aerosol dispensers
• Directive 94/62/EC on packaging and packaging waste
Some relevant standards for products
targeted for exports to the FCORs
Garbage Bags.
• The applicable EU standard for biodegradable plastic bags for
composting is European norm EN13432 which requires that
the bag degrades at least 60% within 180 days or less. The
Totally Degradable Plastic Additives (TDPA additives), supplied
by EPI uses custom compounders that are ISO 9000 certified in
the UK, USA and Canada are incorporated into traditional
plastics to make them degradable and biodegradable.
Normally the industry produces biodegradable garbage bags
to meet FDA, ISO14855, ISO9001 and EU standard
Some relevant standards for products
targeted for exports to the FCORs
Clay Roof Tiles etc.
• The applicable European standard is CSN EN 1304- Clay
roofing tiles and fittings - Product definitions and
specifications. This standard specifies requirements for clay
roofing tiles and fittings for pitched roof coverings and wall
cladding and lining. It applies to all tiles and fittings as defined
in Clause 3 of the standard.
Some relevant standards for products
targeted for exports to the FCORs
Cosmetics
• The EU regulations for Cosmetics are found in Council
Directive 76/768/EEC of 27 July 1976 on the approximation of
the laws of the Member States relating to cosmetic products
(Cosmetics Directive). This Directive is replaced by Regulation
(EC) No 1223/2009 from 11 July 2013. Technical adaptations
to the Cosmetics Regulation are found in Commission
Regulation (EU) No 344/2013 of 4 April 2013 amending
Annexes II, III, V and VI to Regulation (EC) No 1223/2009 of
the European Parliament and of the Council on cosmetic
product
Some relevant standards for products
targeted for exports to the FCORs
Office and Home Furniture
• There are no specific Directives for the furniture sector but several
Directives have implications for the industry, in particular regarding
environmental, chemical and health and safety aspects.
• Directive on integrated pollution prevention and control (IPPC)
(Directive 2008/1/EC -concerning integrated pollution prevention
and control (codified version)
• Directive on Volatile Organic Compounds (VOCs) - (Directive
1999/13/EC) - the limitation of emissions of volatile organic
compounds due to the use of organic solvents in certain activities
and installations.
• Regulation on the Registration, Evaluation, Authorisation and
Restriction of Chemical substances (REACH) (Regulation (EC) No
1907/2006, amendments and implementation legislation related to
REACH )
• Directive on waste (Directive 2008/98/EC )
Some relevant standards for products
targeted for exports to the FCORs
Confectionery
• The European Union (EU) has been updating legislation on
food labelling to promote consumer awareness about not-sohealthy ingredients in food products. One key issue for EU
manufacturers are new provisions within the EU’s food
information to consumers (FIC) regulation (1169/2011) which
mandated that by the end of a five-year implementation
phase (starting December 2011), all pre-packaged food must
be labelled with a nutrition declaration consisting of energy,
saturated fat, carbohydrates, protein, saturates, sugar and salt
quantities.
Some relevant standards for products
targeted for exports to the FCORs
• The regulation calls for energy values and amounts of
nutrients to be expressed per 100g/100ml – or per portion
where appropriate – and requires labelling to be clear and
legible: establishing a minimum font size for the mandatory
information of 1.2mm, and 0.9mm for products whose
packaging has a largest surface of less than 80cm2. This is not
expected to have a negative impact on the sales of sweets and
bakery items.
Steps for Food companies to
meet quality specifications
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Ingredient specification
Approved suppliers list
Product formulation/Recipe’
Product Standards( HACCP based)
Manufacturing procedures
In- processs records
Packaging and labelling
Good manufacturing practices and sanitation
Warehousing and storage
Laboratory analysis
Recall Plan
Import Documentation
• The following documents are generally required by customs
for imports:
• Bill of lading or Airway bill
• Commercial invoice – written in French or carrying a
translation
• Certificate of origin
• EUR 1 circulation certificate (for exemption of certain taxes as
an ACP member)
• Phytosanitary, fumigation or disinfection, zoosanitary
certificate where
Labelling Requirements
• The purpose of product labelling is to provide complete
information on the content and composition of products in
order to protect the consumer’s health and interest. In turn
the incentive for manufacturers is that a well labelled product
significantly decreases liability
Labelling Requirements
• General Requirements;
• Must be in French . The writing must be clear and nonpromotional
• Be used to properly identify the product.
• Specify the ingredients or material constituting the product
starting with the one with the highest content
• State the net quantity of product (in metric units).
• Carry the product’s date of manufacture; recommended ‘best
used before’ date; and expiry date.
Labelling Requirements
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Include instructions on usage and care.
State the name of the producer, manufacturer or distributor.
Registered brand names and trademarks must be used.
State the country of origin and the lot number.
Inform of any special sales conditions or limitations of the
product.
• Carry tax-included prices for all pre-packaged goods except those
sold by mail order.
• Barcode price labelling generally use the GENCOD that is the
French system of the EAN