EXPORTING OF SHRIMP PRODUCTS

Exporting Company

: SM Exporters Pvt India Ltd

Origin

: Chennai, Andhra Pradesh, India

Export countries

: European Countries
(Belgium, Bulgaria. Croatia, Cyprus (the Greek
part) ,Denmark, Germany)

TYPES OF SHRIMPS EXPORTED IN FROZEN AND NON FROZEN FORMS:

1. Scampi (Macrobrachium rosenbergii)

2. White prawn (Penaeus indicus)
3. Tiger prawn (Penaeus monodon)
4. Brown shrimp (Metapenaeus dobsoni)
5. King prawn (Metapenaeus affinis)

Company deals with Shrimp exports to European countries.

Supply chain of Shrimp in India

Fishermen

Commission
Agent

Supplier

(Pre Processor)

Exporter

Method of Payment:
Payment done through Letter of Credit:
As L/C is issued by importers bank in favour of the exporter giving the authority to
draw bills up to a particular amount ( as per contract price ) covering specified
shipment of goods and assuring him of payment against the delivery of shipping
documents.
Payment is done after the shipment of goods within 30 days. The importer has to pay
interest charges if he is failed to pay the money on time.

Payment Agreement through FOB: Under this quotation, the exporter undertakes
to pay all expenditure till the loading of goods on board the ship, including
documentation charges. The exporter is also required to clear the goods at the port
of shipment.

The following are the export documents required for the processing of the Shipping
Bill:

GR forms (in duplicate) for shipment to all the countries.

4 copies of the packing list mentioning the contents, quantity, gross and net
weight of each package.

4 copies of invoices which contains all relevant particulars like number of

packages, quantity, total f.o.b, correct & full description of goods etc.

Contract, L/ C, Purchase Order of the overseas buyer.

AR4 (both original and duplicate) and invoice.

Inspection/ Examination Certificate.

EXPORT PROCESS FOR SEAFOOD SUMMARY FLOW CHART

Pricing of Shrimps

Types of Shrimps:

Types of obtaining Shrimps

Distribution of Shrimps:

PRODUCT STANDARDS
Directive 91 Annexure 493 laid down the rules for product and production
standards.
The focus is on production related safety aspects of shrimp products from
developing nations to European Union.
The major issues regarding safety norms of fishery products like frozen and nonfrozen shrimps is the presence of harmful microbes and presence of chemicals in
quantity which may render the product harmful for human consumption.
1. Conditions concerning parasites: During production and before they are
released for human consumption, fish and fish (shrimp) products must be
subject to a visual inspection for the purpose of detecting and removing any
parasites that are visible.
2. Conditions concerning freezing temperature: The frozen shrimps are to be
maintained at a temperature of not more than -20 0 C. in all parts of the
product for not less than 24 hours. Products subjected to this freezing process
must be either raw or finished.
3. In accordance of Council Regulation (EEC) no 103/76 (last amended in
2006) the fishery products must undergo certain critical checks. Organoleptic
contents inspection in the shrimp is thus a critical standard
4. Article 15 under this directive also laid down the norm for parasitic content
checks in the fishery (shrimp) product.
5. Chemical content analysis is also a necessary parameter laid down by this
directive. Wherein samples are to be tested for controlling the level of certain
chemical components like:
TVB-N (Total Volatile Basic Nitrogen) and TMA-N (Trimethylamine-Nitrogen)
Histamine : the mean value must not exceed 100 ppm
6. Article 15 is also concerned with the concentration of contaminants in the
water in which the shrimps are cultured.
Imported shrimps must not contain in their edible parts contaminants present in the
aquatic environment such as heavy metals and organo-chlorinated substances at
such a level that the calculated dietary intake exceeds the acceptable daily or weekly
intake for humans.

EU import conditions for seafood and other fishery

products
The European Commissions Directorate-General for Health and Consumers
(SANCO) is responsible for food safety in the European Union. Our import rules for
fishery products and shellfish (bivalve molluscs) seek to guarantee that all
imports fulfil the same high standards as products from the EU Member States with respect to hygiene and consumer safety and, if relevant, also to the animal
health status. To ensure that imports can take place smoothly and efficiently,
interested countries and businesses should understand the fundamental principles
and philosophy of the European Food Law, which form the basis for our import rules.

Principles of the European Food Law

Our citizens have legitimate, high expectations regarding the safety and quality of
their food. To meet these expectations, the food law of the European Union
implements the principle of quality management and process-oriented controls
throughout the food chain - from the fishing vessel or aquaculture farm to the
consumers table. Spot checks on the end product alone would not provide the same
level of safety, quality and transparency to the consumer. To implement these
harmonised principles, the Food and Veterinary Office of the European Commission
is undertaking missions in all exporting countries.

General Rules for Fishery Products

Imports of fishery products into the European Union are subject to official
certification, which is based on the recognition of the competent authority of the nonEU country by the European Commission. This formal recognition of the reliability of
the competent authority is a pre-requisite for the country to be eligible and authorized
to export to the European Union. Public authorities with the necessary legal powers
and resources must ensure credible inspection and controls throughout the
production chain, which cover all relevant aspects of hygiene, public health and, in
the case of aquaculture products, also animal health. All bilateral negotiations and
other relevant dialogue concerning imports of fishery products must be undertaken
by the national competent authority. All other interested parties and private
businesses wishing to export to the EU should contact their competent authority and
communicate with the European Union via this channel.

Specific Key Elements

For all fishery products, countries of origin must be on a positive list of eligible
countries for the relevant product. The eligibility criteria are:
Exporting countries must have a competent authority which is responsible for
official controls throughout the production chain. The Authorities must be
empowered, structured and resourced to implement effective inspection and

guarantee credible public health and animal health attestations in the certificate to
accompany fishery products that are destined for the EU.
Live fish, their eggs and gametes intended for breeding and live bivalve molluscs
must fulfil the relevant animal health standards. This requires that the veterinary
services must ensure effective enforcement of all necessary health controls and
monitoring programmes.
The national authorities must also guarantee that the relevant hygiene and public
health requirements are met. The hygiene legislation contains specific requirements
on the structure of vessels, landing sites, processing establishments and on
operational processes, freezing and storage. These provisions are aimed at ensuring
high standards and at preventing any contamination of the product during
processing.
Specific conditions apply for imports of live or processed bivalve molluscs (e.g.
mussels and clams), echinoderms (e.g. sea urchins) or marine gastropods (e.g. seasnails and conchs). These imports are only permitted if they come from approved
and listed production areas. The national authorities of exporting countries are
required to give guarantees on the classification of these products and the close
monitoring of the production zones to exclude contamination with certain marine
biotoxins causing shellfish poisoning.
In the case of aquaculture products, a control plan on heavy metals,
contaminants, residues of pesticides and veterinary drugs must be in place to
verify compliance with EU requirements.
A suitable control plan must be designed by the competent authority and submitted
to the European Commission for initial approval and yearly renewal.
Imports are only authorised from approved vessels and establishments (e.g.
processing plants, freezer or factory vessels, cold stores), which have been
inspected by the competent authority of the exporting country and found to meet EU
requirements. The authority provides the necessary guarantees and is obliged to
carry out regular inspections and take corrective action, if necessary. A list of such
approved establishments is maintained by the European Commission and is
published on its website.
Inspections by the Commissions Food and Veterinary Office are necessary to
confirm compliance with the above requirements. Such an inspection mission is the
basis of establishing confidence between the EU Commission and the competent
authority of the exporting country.

Border Inspection
Imports of fishery products from non-EU countries must enter the EU via an
approved Border Inspection Post under the authority of an official veterinarian. Each
consignment is subject to a systematic documentary check, identity check and, as
appropriate, a physical check. The frequency of physical checks depends on the risk
profile of the product and also on the results of previous checks. Consignments
which are found not to be compliant with Community (EU) legislation shall either be
destroyed or, under certain conditions, re dispatched within 60 days.
For information on personal imports, see:
http://ec.europa.eu/food/animal/animalproducts/personal_imports/index_en.htm

Training and Technical Assistance

The European Commission provides training, technical assistance and facilities for
institutional capacity building to help developing countries comply with EU rules. For
example, DG SANCO's Better Training for Safer Food initiative runs training for
official control staff of developing countries on EU standards for fishery and
aquaculture products. The training is aimed at broadening knowledge of EU
standards in these countries thereby improving levels of compliance. This helps to
ease developing countries' access to the EU market for their fishery products.
Additional, national and regional development programmes of the European Union
are available in individual countries, as well as bilateral aid projects of the Member
States. The delegations of the European Union can provide detailed information on
these programmes.
What are the formal steps towards approval for imports?
The EU has designed a procedure for the evaluation of the eligibility of third
countries for exporting fishery products to the EU.
1. The national authority of a third country must submit a formal request to the
Directorate-General for Health and Consumer Protection of the European
Commission to export fish, fishery products or bivalve molluscs to the EU. The
request should contain confirmation that the authority can fulfil all relevant
legal provisions to satisfy EU requirements.
2. The Directorate-General for Health and Consumer Protection sends out a
questionnaire which should be completed and returned. Information on
relevant legislation, competent authorities, hygiene and many other elements
are requested.
3. For aquaculture products, a residue monitoring plan of the exporting country

must also be submitted and approved at this stage.

4. After the evaluation of the paper submission, an inspection by the Food and
Veterinary Office may be carried out to assess the situation on the spot. Such
an inspection is mandatory for high-risk products like shellfish.
5. Based on the results of the evaluation / inspection, and the guarantees given
by the exporting country, the Directorate-General for Health and Consumer
Protection proposes the listing of the country, the specific conditions under
which imports from that country will be authorised and the list of approved
establishments in the country. These are then discussed with representatives
of all EU Member States.
6. If the Member States have a favourable opinion on the proposal, the European
Commission adopts the specific import conditions. Lists of eligible
establishments can be amended at the request of the exporting country and
are made available for the public on the internet:
http://ec.europa.eu/food/food/biosafety/establishments/third_country/index_en.htm

PACKAGING REQUIREMENTS
Packaging of fishery products have drawn WTOs attention way early in 1990.
Thus the Export Packaging Note No. 36 was developed and is adopted and
under implementation in EU.
The various heads under which the packaging must be adapted to be
environmentally safe.
Source reduction
Use of less/fewer raw materials, especially
non-renewable materials by making packages
smaller and light and by material substitutions.
Energy requirements
Use of packaging materials and methods,
which minimize energy consumption.

Potential for reuse

Packaging designed and constructed for multiple usage.
Potential for recycling
Packaging from which the materials can be recovered for reuse as packaging
or secondary applications.
Ease of disposal
Packaging, which can be readily disposed of after use with minimal
environmental impacts.
Air, water and ground pollution
Use of packaging materials and methods, which minimize pollution during all
stages of production and use, as well as at final disposal.

LABELLING SPECIFICATIONS
In accordance with the Regulation (EC) 104/2000 (OJ L-17 21/01/2000) and
Regulation (EC) 2065/2001 (OJ L-278 23/10/2000), the following information must
be provided on the labeling or packaging of the fishery product, or by means of a
commercial document accompanying the goods:
1. Commercial and scientific designation of the species: For this purpose,
Member States publish a list of the commercial designations accepted in its territory.

2. Production method (caught at sea or in freshwater, or resulted from aquaculture)

indicated by the harmonised terminology

3. Catch area:
Caught at sea: one of the areas mentioned in the Annex to the
Regulation 2065/2001;
Caught in freshwater: reference to the country of origin;
Aquaculture: reference to the country in which the product is farmed
The labels of products subject to harmonised marketing standards established
by Regulation (EC) 2406/96 (OJ L-334 23/12/1996) should include the
following details:
Country of origin in Roman letters at least 20 mm high
Scientific name and trade name
Presentation
Freshness and size categories
Net weight in kilograms
Date of grading and date of dispatch
Name and address of consignor
Lots must contain products of the same size and uniform freshness. The freshness
category, size category and presentation must be clearly and indelible marked, in
characters of at least 5 cm high, on labels affixed to the lot.
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.

The customs tariffs for the concerned product

TARIFF AND DUTIES (TARIC)

Simulation date : 03/09/2014

TARIC code 0306135000 (CRUSTACEAN FROZEN OR NON-FROZEN)

Country of origin/destination India - IN (664)

No restrictions Import

Third country duty: 12.00%

Non preferential tariff quota : 0 %

End date 31/12/2008

Tariff preference (SPGL): 4.20 %

Documents required: (C 623) Transshipment certificate EXP.1

AVAILABILITY OF INSURANCE
The insurance policies are categorized under
1. Insurance covering loss of consignment during shipping (damages, theft etc.)
2. Insurance covering credit risk.
ECGC is the agency which provides insurance cover against credit risk
Credit Insurance Policies:
1. SCR or Standard Policy includes:
a. Commercial Risks:
Insolvency of the buyer.
Failure of the buyer to make the payment due within a specified period,
normally four months from the due date.
Buyer's failure to accept the goods, subject to certain conditions.
b. Political Risks:
Imposition of restriction by the Government of the buyer's country.
War, civil war, revolution or civil disturbances in the buyer's country.
New import restrictions or cancellation of a valid import license in the buyer's
country.
Interruption or diversion of voyage outside India resulting in payment of
additional freight or insurance charges which cannot be recovered from the
buyer.
Any other cause of loss occurring outside India not normally insured by
general insurers, and beyond the control of both the exporter and the buyer.

TRADE POLICY REGULATIONS

The HS code for frozen shrimp is 030613 and that of non-frozen is 030623.
There is no separate trade policy or procedure for fishery (shrimp) export from
our country.
Nevertheless, there are certain Duty Exemption Schemes applicable under
specified products.

CODEX ALIMENTARIUS NORMS:

The Codex Alimentarius Commission was created in 1963 by FAO and WHO.
The main purposes of this Programme are protecting health of the consumers
and ensuring fair trade practices in the food trade.
Codex code for Shrimp products are as follows:
Reference

Number

Year of
adoption

Title

Revision

Year

Amendment

CODEXSTAN

37

1991

Standard for
Canned Shrimps
or Prawns

1995

NIL

CODEXSTAN

92

1981

Standard for
Quick Frozen
Shrimps or
Prawns

1995

NIL

SWOT ANALYSIS OF INDIAN SHRIMP EXPORT TO EUROPEAN UNION

QUALITY MANAGEMENT FOR EXPORTS : DISEASE MANAGEMENT

PRESENCE OF PATHOGEN IN DISEASED SHRIMP RENDERS IT NON
EXPORTABLE DUE TO STRINGENT SANITARY MEASURES IN
INTERNATIONAL MARKET.
SOME OF THE DISEASES WHICH AFFECT SHRIMP ARE:
1. Monodon Baculovirus Disease (MBV)
2. Hepatopancreatic Parvo-like Virus (HPV) Disease
3. Yellow-head Disease (YHD)

Year

4. Luminous Vibriosis
5. Black Gill Disease
6. Soft-shell syndrome

QUALITY MANAGEMENT FOR EXPORTS: HARVESTING

Has to be harvested in good condition within a short period of time.

Harvesting technique should not damage or excessively contaminate the
shrimp with waste.
Rapid harvesting will reduces risk of bacterial contamination and the shrimp
will still be fresh when reaching the processor.
Complete harvesting can be carried out by draining the pond water through a
bag net and hand picking.
The average culture period required is around 120-150 days during which
time the prawns will grow to 20-30 gm size (depending on the species).

QUALITY MANAGEMENT FOR EXPORTS: PROCESSING