(IntraFish) Concerns over the European Commission’s leaked proposal for a 3.5 percent duty on pollock imports into the European Union (EU) have softened with the release of new plans to nix the tax.
Yet a 260,000 metric ton limit per year on Alaska pollock imports remains, drawing continued concerns from Alaska pollock importers in the European Union, who will have to pay a 20 percent duty on any pollock imported above that limit.
“We don’t like these limits because these limits are uncertain," Guus Pastoor, president of the European association of fish processors and traders AIPCE-CEP, told IntraFish. "We don’t know if the limits will be reached, and then you don’t know if you are in or out. That’s why we say 'Why don’t we just keep the system as it is.'"
It is likely some pollock importers will be stuck paying a 7.5 to 20 percent duty. Over the last five years, the average volume of pollock imported into the European Union was 5,000 metric tons over the limit, at 265,000 metric tons. In 2008, the import volume reached 290,000 metric tons, a source in the industry told IntraFish.
Yet the new plan is of little concern to US Alaska pollock producers, the source said.
"Most people feel that the quota was set at such a high level that it's not really a concern," the source said, referring to the US pollock export industry.
Sentiments are different on the other side of the European Union border. As importers try to avoid getting stuck paying the duty, the new import quota could create a race for orders.
"In general, that's what this system leads to," Pastoor said. "That may be a nice thing for exporters, but on the other hand, it doesn't match the normal way the business goes...You would be forced to start buying in a speculative way just to try to make sure that you get a zero tariff."
AIPCE-CEP is working to convince member states to rethink the quota and hopes to meet with the commission to discuss it, he said. However, the commission may be past the stakeholder engagement period.
"The commission has consulted the stakeholders from November 2011 to May 2012," a spokesperson for the commission told IntraFish in an email. "Now, the proposal is in the council for the last round of discussions with the member states, and it is now the responsibility for the member states and the Commission to agree on a final proposal."
These plans are part of the EU's process of establishing autonomous tariff quotas (ATQ) for certain fish and fish products every three years. The quotas aim to help increase the supply of raw materials for the EU processing industry. Part of the goal of the current proposal is to keep supply at a consistent level.
European member states are expected to make a decision by the end of the year. If adopted, it would be in effect from January 2013 to December 2015.