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.
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