Federal Agricultural Marketing Authority (FAMA) Cameron Highlands recently adjusted the customs declaration time for the export of vegetables and fruits to Singapore, whereby the time to approve applications of e3P label (Grading, Packaging and Labeling) and COC (Certificate of Conformity) is changed from 24 hours every day to 8pm until 10pm. This change has affected many farmers in Cameron Highlands. I had written to FAMA to request postponement of the timetable adjustment and a forum in order to provide clarification to all affected farmers.
FAMA’s person-in-charge has replied that the regulations are still on trial and so FAMA will give some leeway to the farmers. FAMA has also agreed to organize a forum in the near future in order to provide detailed explanation about how to utilize the online system in applying for custom declaration.
Ever since FAMA introduced e3P and COC regulations in 2011, vegetable transport service providers have to apply for COC via Dagang Net Technologies Sdn Bhd and have faced many problems, including longer hours of transportation and higher amount of inspection fees that greatly increase transportation cost. The crux of the matter is the fact that the application of COC and K2 form (Custom declaration form) are very similar in nature, which is the declaration of vegetables and fruits quality standards.
If FAMA intends to obtain information about the export of vegetables and fruits, it can actually synchronize its system with the Customs Department instead of asking the transport service providers to perform repetitive work. Furthermore, the fees paid by them to apply for COC are actually collected for Dagang Net. In other words, FAMA does the work, but the private company reaps the benefits.
After a meeting with Cameron Highlands Vegetable Transport Association, we agreed unanimously that the e3P and COC regulation is redundant and leads to red tape, contributes to longer hours for transport, increases the cost to export and ultimately undermines the competitiveness of the local vegetables and fruits export sector.
Firstly, Cameron Highlands is at high altitude and the time needed for transport will need extra two to three hours to reach the low altitude area. Therefore, the procedures of export for vegetables and fruits should be simplified instead of being increasingly complicated;
Secondly, Cameron Highlands’s geographical uniqueness is suitable to plant vegetables and fruits that grow well in cold weather. Majority of the farmers will collect their fruits and vegetables in late evening, and so it is logical for the transport service providers to start working at night;
Thirdly, Cameron Highlands is the largest exporter of fruits and vegetables to Singapore. Therefore, the authority should simplify the procedure and encourage export of fruits and vegetables in order to contribute to our nation’s economy through foreign exchange earnings.
I will write to the Ministry of Agriculture and Agro-Based Industry (MOA) in order to review the regulations of e3P and COC. If study shows that these regulations indeed overlaps with the current customs declaration procedures, MOA should root out the regulations that are costly and meaningless to the rakyat.