Tuesday, October 20, 2020

Sri Lanka declares export of Cinnamon in bark form to the Brazilian market

 


The Embassy of Sri Lanka in Brasilia has recently finalised the certification process with the Brazilian authorities to export to Brazil of Sri Lankan cinnamon in bark form. Sri Lankan exporters, which had previously had trouble exporting Sri Lankan Cinnamon in bark form to Brazil, could export the commodity by furnishing the requisite phytosanitary certificate provided by the Sri Lankan office of the National Plant Quarantine Service.

Sri Lanka Cinnamon in bark type is categorised in the category of wood and its components, in compliance with the Brazilian Customs classification and plant health requirements, due to the nature of the commodity. The Embassy of Brasilia has been actively involved with the Ministry of Agriculture for more than a year to finalise the certification of Sri Lankan cinnamon to promote the entry of Sri Lankan cinnamon into the Brazilian market.

Cinnamon has a promising market opportunity in Brazil. Imports of Cinnamon to Brazil increased from 18 per cent in 2017-2018 but decreased marginally in 2019 compared to 2018. With a value of $7.74 million, the total Cinnamon imported from the world by Brazil in 2019 is over 2,300 tonnes.

Sri Lanka accounted for a minimal amount of total cinnamon imports from Brazil in 2015. Subsequently, no reported exports of Cinnamon directly to the country have taken place in recent years. As the largest exporter of Cinnamon, Indonesia provides Brazil with almost 75 % of the total volume of Cinnamon. Under the GSTP Agreement, Sri Lankan cinnamon exporters may demand a 5% duty preference from Brazil. Thus, companies interested in exporting Cinnamon may consult with the Department of Commerce to obtain a GSTP certificate in bark form. To get the requisite certification document, prospective exporters will need to visit the National Plant Quarantine Service office in Sri Lanka.

The National Plant Quarantine Service will issue a certificate stating that the shipment is free of injurious insects, bacteria, nematodes, and fungi upon inspection of representative cinnamon samples from the consignment. Subject to fumigation at 48 g / m3 (above 210C) using methyl bromide. With the assistance of the EDB and the Ministry of Commerce, the Embassy aims to promote and diversify Sri Lankan exports to the Brazilian and Latin American markets, and potential exporters can contact the Trade Division of the Embassy by email at sltradebrazil@gmail.com.

OSL Take: Sri Lanka’s EDB is engaged in many programs to uplift its export sector by introducing modern methods and diversification. It also explores new opportunities to reap the most significant benefits from Sri Lanka’s free trade accords and trade allowances from foreign countries. Receiving GI for Ceylon Cinnamon by the EU would help improve cinnamon exports to the EU and other countries. Foreign businesses/investors could explore business/investment opportunities in Sri Lanka’s export segment and form alliances with local export companies.

 VBS/AT/20102020/Z_5TB

 

 

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