The Hindu Business Line : Iraq seeks `certificate of origin' for tea shipments

THE year 2004 has bought cheer to the beleaguered tea industry in the form of prospects of improved exports to Pakistan and, to a larger extent, Iraq.

A beginning has been made with Iraq, which recently floated a tender for purchase of Indian tea.

Yet, even as the fresh orders have introduced a ray of optimism in the industry, Iraq's insistence on a certificate of origin has thrown up issues that the tea industry needs to take immediate cognisance of.

"The tender document clearly specifies that the origin of the goods must be the same origin as of the supplier's country. In accordance with the stipulation, all exporters responding to the tender will have to produce a certificate of origin to the effect that the tea shipped is Indian tea,'' industry sources told Business Line.

While exporters to Iraq are no strangers to such a stipulation - it was mandatory when the UN sanctions were in place and under the food-for-oil programme - it gains importance in the light of the fact that there have been instances when the tea exported has not been purely Indian tea.

"If it has happened in the spices trade, why not tea trade? And one has to take cognisance of the fact that in India, barring 2003, tea imports have been on the rise," they said.

"Over a period of 10 years it has jumped from two million to 22 million in 2002. There is every possibility that some of these teas could have got re-exported to Iraq under the guise of Indian tea. But Iraq wants Indian tea, not Indonesian or Vietnamese tea in the guise of Indian tea.''

The recent stipulation has sent a jolt of awareness in the industry, which is concerned that if any such practice were bought to light - as in the case of the spices trade - there is every possibility of losing a traditionally valuable market.

"The tea industry has been going through a downturn for almost four years now. And at a time when we are looking to step up exports to our once traditional markets like Iraq and USSR, we cannot afford to tarnish our image and lose a bona fide market,'' a highly-placed tea industry official said.

Expressing its apprehension, UPASI, with a view to safeguard India's interests in the case of Iraq, has mooted that the issue of certificate of origin be supervised by the Tea Board.

"The Tea Board, as custodian of the tea industry, is better equipped to issue a certificate of origin. The chambers of commerce in the country are as well equipped for this purpose," said Mr B. Medaiah, UPASI President.

"Besides, there have been instances were the exporter has managed to export foreign goods as Indian commodity by obtaining a fraudulent certificate of origin, thereby tarnishing the image of India and Indian goods," he added.

In a communiqué to the Tea Board, he urged that the issue be taken up exclusively by the board by way of administrative orders from the Commerce Ministry.

"While for the current exclusive action may be taken in respect of Iraq, we submit that the Tea Board should be the only authority to issue certificate of origin with respect to tea shipments to all countries. Once this is accepted in principle, a mechanism could be worked out wherein the Tea Board could co-ordinate with the chamber of commerce, export inspection agency, etc.,'' Mr Medaiah said.

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