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NZFSA Exporter Updates

Issues to assist certification

March 2008

[Only dairy sections of the Update are shown here.]

New requirements for dairy products exported to the EU

NZFSA publication FD-06 FD3-06: “European Union: Export Certificate Data” & FD5/07: “European Union: Date of Departure” informed the industry of upcoming changes to the format and layout of health certificates. The final format was determined by the European Commission last year. Use of the new format depends on the staggered updating of the legislation for each relevant product type.

The legislation for the non-food certificates has been updated and the new models will be required for all consignments certified to, or in transit through, the European Union from 1 May 2008. Old-format certificates issued before that date will not be accepted by the European Union after 30 June 2008. NZFSA is developing new certificates for the affected products. The legislation for human consumption dairy products is expected to be updated later this year.

The new certificate format requires Harmonised Standard (HS) codes, as commonly used by Customs, to be shown.

Exporters will need to state the HS code for products exported to the EU on their E-cert application. This includes any EU submissions, EU transit submissions.

The HS code will need to be added as a qualifier when requesting certification through E-cert. The list of acceptable HS codes will be uploaded onto the NZFSA website on the List of NZFSA Dairy Product Descriptions & Qualifiers spreadsheet (http://www.nzfsa.govt.nz/dairy/registers-lists/prod-desc.htm).

The EU legislation specifies the relevant HS codes for several of the product-specific certificates. For example, the certificate for milk and milk-based products that have undergone a single heat treatment and are not intended for human consumption will use one of the following HS codes: 230910, 230990, 3502 or 3504, whereas the certificate for these products that have undergone sterilization or a double heat treatment have the additional option of 3501.

This requirement will come into force in stages (over the next 12 months). The first products required to have the HS code added are the dairy non-food products, for which the HS codes must be included for certificates issued from 1 May 2008. NZFSA will advise when other products need HS code information.

There will be no change to the NZFSA product description on the certificate as a result of this change. As long as exporters only add the HS code for dairy non-food products (until further advised), our systems will ensure that the HS code information submitted (as a qualifier) does not print out in the product description field but instead appears in a separate HS code box.

If you require further clarification on this matter please contact the Certification Unit on 09 909 6200 or dairycerts@nzfsa.govt.nz.

New system for managing dairy export quota

With the passing in December 2007 of an amendment to the Dairy Industry Restructuring Act (2001) registered dairy exporters can now apply for quota to previously restricted markets. These new markets, which include the EU, Japan, the Dominican Republic and the US, opened up as their exclusive rights expired progressively from December 2007.

To be eligible to export, dairy product exporters must hold a valid export licence, apply for authorisation and the product must be manufactured at premises that have a registered Quota Compliance Programme.

This has meant changes to NZFSA’s systems to coordinate the registration of exporters for quota markets, obtain quota certificates and record that the product meets manufacturing, storage and testing requirements (via the Quota Compliance Programme).

Some parts of the new process will be managed by MAF, such as allocating export licences, maintaining a register of eligible export licence holders and transfers, while NZFSA will be responsible for compliance, certification and enforcement.

The export licences allocated by MAF will be registered in a Quota Management Register (QMR) which holds information relating to quota programmes, periods, product types, specifications, markets, quota licence holders and quota transfers.

Once an exporter has a licence they apply to NZFSA for authorisation to export to a quota market using NZFSA’s new Quota Management System (QMS) located in the Auckland Dairy Certification office. The QMS can track quota use and also issue quota certificates if required by an importing country.

The QMS replaces the IMA Certification system in March. Exporters are required to use the QMS for authorisation to export to designated quota markets for which multiple export licenses have been allocated. Initially these quota markets are the EU butter, processed cheese and cheddar cheese quotas, and the Dominican Republic milk powder quota.

More information on the dairy quota management system can be found on NZFSA’s website www.nzfsa.govt.nz/dairy/subject/quota-management-system/index.htm, or for general enquiries, email dairyquota@nzfsa.govt.nz.

More information about licences can be found on the MAF website at www.maf.govt.nz/mafnet/publications/regulated-dairy-quota-market/q-and-a.htm.