Marine exports from India risk damage as China imposes non-tariff barriers

Outbound shipments of marine products from the country are facing non-tariff barriers in China, causing concerns for Indian exporters, people aware of the matter said.

At a time when exporters are battling twin challenges of container shortage and high freight costs, Covid-19 testing on the imported seafood consignments at the Customs and local authority-level in China has exacerbated the uncertainty over the last two months. Conta­iners are being held up at Chinese ports that has resulted in exporters incurring heavy dem­urrage charges. In addition, Chinese importers not making payments towards cle­a­red consignments is also a major issue, they said.

“China has introduced an examination system, which is not there anywhere in the world. Besides, time to test the products has also increased substantially, resulting in delay in clearance of consignments. This has also resulted in damage to the products,” a source said.

While Chinese authorities have expressed concern after detecting ‘dead nucleic acid remnants’ on the outer packing material of seafood products, Indian exporters and government officials said that the seafood industry is strictly following all Covid-related protocols.

They added that no other country has pointed out such concerns with respect to imports of marine products.

“Detection of nucleic acid in material does not mean that it can cause any illness as it is not the whole virus. Scientific evidence clearly states that nucleic material of Covid-19 virus, even if present, cannot cause any disease to human beings. Besides, test reports have not been provided by the authorities,” another official said.

Indian officials have been asking Chinese customs authorities to stop testing the imported seafood consignment for Covid-19 nucleic material. China is one of the key markets for India as far as marine exports are concerned.

India exports a fifth of its marine products to China. It is also the single market for items such as ribbon fish, croaker and other low-value fish. Blocking exports of such items is hurting the fishing community on the west coast of India. India exported shrimps worth $4.42 billion in the previous fiscal year. During April-August, marine products worth $503 billion were exported to the neighbouring country.

It is learnt that apart from India, the United States, Canada and Australia have also raised the matter at the World Trade Organization (WTO). They have resisted conditions imposed by China on the detection of Covid-19 in cold chain foods.

CAUSE FOR CONCERN

• China is one of the key export markets for India's marine products
• Chinese authorities have expressed concern over detection of dead nucleic acid remnants on packages
• According to scientific evidence, nucleic material of Covid-19 virus cannot cause any disease to human beings
• No other country has pointed out such concerns regarding marine imports from India