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Perishables permit is a business killer – cold-chain executive

08 Jun 2023 - by -
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Namibia’s cold-chain industry is facing a crisis due to a new veterinary trade barrier implemented without notice or consultation by the government last December.The ‘Veterinary Import Permit for the Conveyance of In-Transit Commodities’, also known as “the perishables permit”, hinders the industry’s growth and causes significant economic losses, a cold-chain executive based in Windhoek has said*.In addition, the permit’s stringent EU export requirements mean that no product can now pass through Namibia unless it is eligible to be imported into Namibia for local consumption, effectively prohibiting the in-transit movement of perishable goods from plants not approved for Namibia but approved for the landlocked countries.The original permit also costs N$3 000 to courier.Suppliers are now expected to courier the single document to Namibia after the importers send the original to the country of origin, where the exporting state vet must sign and stamp it.“This practice is not legal, as forcing another country’s competent authority to sign a foreign country’s document is not protocol,” the expert said.“It adds a layer of bureaucracy to the supply chain, causing delays and costs. Other countries offer digital solutions that could streamline the process, but Namibia has yet to adopt such measures.”Freight forwarders in Namibia agree that the perishables permit kills in-transit cargo, primarily destined for markets to the east and northwest.Suppliers and their veterinary departments from foreign countries have already indicated that they will not comply with the new regulations and are considering alternative ports and hinterland options to reach densified markets in Zambia and the Democratic Republic of the Congo (DRC).It is believed that because of the permit, alternatives could be much faster than using the Port of Walvis Bay.One operator in Walvis Bay claims to have lost N$20 million in revenue since the permit announcement on 6 December.The executive said that figures released by the Namibian Revenue Agency already showed a significant loss of revenue.The year before the decision, the port imported about 10 000 tonnes and about 400 containers of chicken products alone, destined for landlocked surrounding countries that rely on this trade route to feed their populations.These figures exclude all other animal products like pork, beef, aquaculture, dairy, and processed meats, adding up to thousands of tonnes lost to the port.The new regulation has also excluded all Chinese aquaculture products from being transited via Walvis Bay, resulting in another estimated 1 500 metric tonnes lost.In Namibia, aquaculture falls under the veterinary department instead of fisheries.This has resulted in a stand-off between the two government ministries and no solution for the industry, the executive said.

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