Transitioning to Pre-Export Checks (PEC)

This time we’re not joking!!

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Remember why VASP was important…..?

• Increasing rapid alert notifications noted by Member States

– 33 notifications– Finland (3%), Greece (10%), Italy

(27%), Spain (60%)– 2/3rd of Spanish rejections in

Barcelona

• EU limits were 4 ppb total, 2 B1– Required a 3x10kg sample

• FVO mission to the U.S. in 2006• VASP proactively developed – by the

industry, to fit our industry• Showed public/private partnership,

commitment

Special Measures implemented in September 2007: 5% mandatory import control

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% Lots Accepted & Rejected in the U.S.

CropYear

LotsTested

Accept(%)

Reject(%)

2007 15,022 94.77 5.232008 13,208 95.33 4.672009 10,007 94.87 5.132010 12,611 98.72 1.292011 13,580 98.88 1.122012 13,700 98.41 1.592013 15,028 98.76 1.24

Original EU limits: 4 ppb total/2 B1

3x10kg plan

Adopted new plan:10 ppb total/8 B1

2x10kg plan

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Avg Afla. Accepted & Rejected in the U.S.

CropYear

LotsTested

Tested(ppb)

Accept(ppb)

Reject (ppb)

2007 15,022 0.48 0.03 8.652008 13,208 0.45 0.03 9.012009 10,007 0.59 0.08 9.982010 12,611 0.32 0.10 16.992011 13,580 0.27 0.07 17.302012 13,700 0.38 0.10 17.652013 15,028 0.33 0.10 18.48

Shipments predominantly ≤ 2% serious

Shipments increased of lower

grades, Std 5%

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RASFF Notifications Demonstrate Effectiveness of VASP!

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Why PEC Matters: The EU has Several Surveillance Options….

No Regime

No certificateControls at discretion of authorities

669/2009Emerging

Risk

No certificateIncreased controls; rate specified by EU

Rate of inspection set by EU Regulation

Special Measures

Govt-issued Health CertificateIncreased controls; rate specified by EU

No certificateEntry Denied

Pre-Export Checks

PEC CertificateControls specified

by EU at < 1%

No certificate Controls at discretion of authorities

U.S. PeanutsCanadian Wheat

U.S. Almonds

Unless an emerging risk is identified or

suspected…

Australian Almonds U.S. Pistachios at

20% control…

Insufficient guarantees; require health certificate by a government body

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PEC Rollout…it’s happening….• AMS/SCI requirements regarding auditing and

proposed parameters necessitated delaying the EU Standing Committee vote and finalizing PEC manual and MOU

• Where do we stand:

– Additional language for certificate √

РSignature after shipment å SPI can sign up to 7 days from truck B/L date

– Final vote by EU Standing Committee on April 14 √

• Awaiting publication in EU Official Journal – any day now…becomes “official” 20 days later

– PEC start date is August 1, 2015– ABC working with USDA Specialty Crop

Compliance department to finalize PEC Quality Management Program Manual and ABC Verification Area checklist

– AQFS Committee approved the final PEC MOU yesterday…..so now the rollout can begin…

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PEC Rollout…it’s happening….

1. Completion and testing of ABC electronic ePEC system by June 10th

2. June 11th Handle and Global Update articles about PEC rollout

3. Rollout webinars June 11th and 12th

4. Potential PEC participants receive new PEC Manual and MOU to sign

5. Once Staff receives signed MOU, on-site visits are planned with handlers for detailed training with checklist for users. After training, handler will receive ePEC username and password and will be able to test ePEC until July 29th

6. Staff will assign a PEC User ID # each crop year (will auto-populate a protected field on the PEC certificate)

7. July 29th – eVASP no longer in use for handlers to enter new certs

8. July 31st – last day USDA labs can issue eVASP certs

9. August 1st – ePEC is live

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PEC modifications, what is different?

• Only applies to bulk kernels and inshell

• Aflatoxin certificate does not need “wet signature”

• Labs do not need to print out and deliver certs to handlers

• Additional page for SPI signature– Confirming handler is MOU signatory– That afla cert matches PEC cert

• No shipping notes, no reissuing

• PEC can be issued up to 7 days after container leaves handler site (using truck B/L date)

• Puts more logistics control at handler level

• Goods arriving without PEC will not be rejected, but may be subject to additional controls

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PEC Program Manual - Notable Changes

• The PEC program is applicable for bulk almonds (kernels, inshell), as well as bulk, unprocessed manufactured almonds (e.g. blanched, sliced, diced and slivered), and raw/unprocessed consumer packs

• Only products which fall under harmonized tariff codes 0802.11 (in-shell) and 0802.12(shelled) are covered

• Roasted products, mixtures, or finished products where almonds are an ingredient (e.g. almond paste, beverages) are classified under different HTC codes and are not covered by PEC.

Covered under PEC

In-shell Bulk

Shelled Bulk

Sliced, Diced & Blanched

“Raw” or “Whole Natural” Consumer Packaged

Products

Not Covered under PEC

Roasted/Toasted Almonds

Almond Butter, Paste, Puree, Oil

Almond Beverages

Almond Flour, Meal

If you have any questions regarding how your export shipments are classified, contact your customs broker/agent.

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PEC Program - Notable Changes

Updated Program Flow Chart

To reflect certificate issuance by local competent authority

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New Aflatoxin Analysis CertHandler Information

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New Aflatoxin Analysis CertUSDA Lab Results

Live signature of laboratory analyst not

required!

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Part 1 DocumentHandler Completes

• Can be completed after shipment

• Many fields are auto-populated

• Consignees can be programmed in by handler

• Hander determines unique Certificate Reference # -- can be used for customer/order number MOU #

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Part 1 Document continued….

• Handler enters actual number of packages and type/size of packages actually loaded in container and the total lbs. shipped (not to exceed total size of lot analyzed)

• Original Lot ID is noted on all pages

• Requires container number

• No signature required on Part 1

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Part 2 Document - SPI Signs & Issues

• The certification page must be signed within 7 days from the handler’s truck B/L date

• Part 2 requires no input from handler. The sample date, analysis date, certificate reference number, and name of lab are automated

• Handler prints out Part 1, Part 2 and Analysis certificate and staples together for SPI to sign

• Handler enters PEC docs to be signed onto PEC Issuance Log (PIL). The PIL Log will be provided to all participants by ABC.

Ready for SPI to sign

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Part 2 Document – Attestation Page - SPI Signs & Issues• Once SPI verifies that handler has signed a PEC MOU they will issue by signing and

stamping with official stamp

• SPI will make one copy on-site after signing– SPI retains one copy for themselves– SPI gives original to handler who must maintain a printed copy for their own records

• SPI will enter issuance date on PIL log and sign on certificate line

• PEC certificate is valid for 4 months from date SPI issues

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PEC Training by ABC StaffFive key components critical to the integrity of the program

• Employee training (staff responsible for managing PEC)

– documented training logs (train the trainer)

• Proper sampling protocol – Written sampling protocol (ABC mock template)– Sampling log/records– Sample size– Sample chain of custody / lab delivery– Proper sample container/storage/sample ID

• PEC analysis & reporting on ePEC

• Hygiene & HACCP principles requirements– One or more CCP’s for aflatoxin control implemented– Basic hygiene programs (i.e. GMPs in place)– Container inspection and documentation

• Failed lot control

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On-Site Verification by ABC Staff

• ABC verification of Handler compliance with PEC via review of sampling procedures, records, and documentation pertaining to HACCP principles.

• 1/3 of Handlers will be audited annually; frequency may increase if warranted (e.g. excessive ePEC issues, failures, etc.)

• Review will consist of documentary as well as physical observation by ABC; USDA/AMS Specialty Crop Inspection Service (SCI) may participate in a percentage of the audits (note: cost of SCI participation in these audits is covered by ABC).

• Consignments for review will be selected at random by ABC, and shall include

– Verification of sampling procedures, PEC sampling logs;– PEC documents including Part 1, 2 (signed by SPI),

Certificate of Analysis, and PEC Issuance Log– One or more failed analysis lot(s) to determine outcome of

the actual lot, specifically to ascertain whether it was re-sorted/re-tested, diverted to a non-PEC country, etc.;

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ePEC – new, faster software – more handler friendly…

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Questions?----

Thank you!