Easier food import norms to cut costs

The decision of the government to rationalise technical regulations on food items imported for export production or domestic consumption is likely to come as a major relief on the transaction costs front for export companies dealing with bulkier products since they form a significant portion of the food item exporters.
The commerce ministry, in consultation with the health and family welfare ministry, today decided to relax quality checking standards and move to new norms is expected to save substantial sums in terms of transaction costs for smaller food item export companies. Industry sources say this could be as high as 5%, depending on the type of consignment. It was consignments from these companies that had to go through 100% checking. Given the long standing demand from the industry to simplify these rules and procedures on quality standard checking which cost them significant sums, the circular issued today by the commerce and industry ministry as part of the policy, has stated that from now on, samples would be checked randomly for adherence to quality standards on select export items (not including high risk food items and perishable items) in the 5-20% range.
With a view to separating the riskier food items from the less risky ones, the government will now come out with separate notifications listing “high risk food items� and “perishable� items including fruit, vegetables, meat, fish, cheese etc. Samples for these would be drawn and tested as per instructions contained already in the relevant Customs circular issued in October 2001.
For food items other than these, samples will from now on be drawn by customs officials from the first five consignments of each item imported by individual importers and referred to Port Health Officers (PHOs) for testing on quality and health standards. The track record of the exporter and the origin of the product would also be considered.
Only if a food item from a particular consignment fails to meet prescribed standards would customs place the import of the food item on red alert and discontinue random checking. A database would be developed by customs for food items to be imported, to be periodically shared by the health ministry.