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The Government of the Republic of Serbia

In the service of citizens

Serbia exported sugar worth €120 million in EU in 2004

Belgrade, 21 January 2005

Serbian Deputy Prime Minister Miroljub Labus said that owing to the introduction of adequate measures for the control of origin of exported goods, the European Commission decided to restore preferential treatment of sugar imported into the EU from Serbia and Montenegro in July 2004. From early August to late December 2004, Serbia and Montenegro exported 195,000 tonnes of sugar worth over €120 million.

Labus told a press conference that the Serbian government needed time to regain the trust of the officials in Brussels concerning the export of sugar and the overall control of foreign trade.

Last month representatives of the European Anti-Fraud Office conducted inspections of sugar plants without advanced notice and examined relevant documentation. They were satisfied with such cooperation and will continue with inspections in the future, the Deputy Prime Minister explained.

According to Labus, as a result of regained trust and full cooperation, Serbia has been allowed to continue exports of sugar, and a textile agreement with the EU has also been initialled.

Labus pointed out that the system of control of exports is very important for the EU. Until May 7, 2003, when the problem of the export of sugar was made public, there really had been no adequate system of control on the origin of goods at customs. On August 8, 2004 a new system on the control of goods was introduced, which is efficient and fully meets EU standards.

Speaking about the examination of disputed certificates for export of sugar into the EU, Labus said that a number of exporters did not manage to prove that their goods are of domestic origin and subsequently their certificates have been taken away.

From early August to late December 2004, Serbia and Montenegro exported 195,000 tonnes of sugar worth over €120 million. This approval for the export of sugar has significantly improved Serbia's export capacities and reduced its trade deficit with the EU, the Deputy Prime Minister stressed.

Starting this year, the EU will introduce quotas for the export of sugar. Serbia has been given preliminary approval for a quota of 150,000 tonnes. However, because domestic production capacities are larger, Serbian government representatives are currently negotiating an increase in the quotas with the EU Directorate for Agriculture, Labus explained and added that an ideal quota would be 200,000 tonnes.

He said that certificates on the origin of 13,165 tonnes of duty-free sugar exported into the EU in the period between July 2002 to early May 2003 were withdrawn. The exporters could not prove that the sugar was of domestic origin, but it was not confirmed in any of the cases that it was repacked imported sugar.

Head of the Serbian Tax Administration's Department for Origin of Goods and Preferential Tariffs Tihomir Bogicevic said that the Customs Service checked 5,215 cases of export out of a total of 190,000 tonnes of sugar. At that time, there were 28 exporters.

It was established that 14 exporters could not prove the origin of 13,165 tonnes of exported sugar, Bogicevic said.

The largest amount of sugar of unknown origin, totalling 9,212 tonnes, was exported by a firm from Novi Sad, MK Komerc.

Other exporters of sugar of unknown origin are Pionir form Subotica - 1,150 tonnes, Almeks from Crepaja - 48 tonnes, Backa from Vrbas - 69 tonnes, Komora Sistem - 382 tonnes, Crvenka - 68 tonnes, Eko Primat from Belgrade - 48 tonnes, Interfrigo from Cacak - 115 tonnes, Internacional CG from Belgrade - 168 tonnes, ITM from Belgrade - 115 tonnes, Jemeks from Belgrade - 326 tonnes, Kobing Inzenjering from Belgrade - 24 tonnes, Medjunarodna Distribucija Secera - 427 tonnes and Tamis from Pancevo - 24 tonnes.

Bogicevic explained that exporters of sugar from Serbia whose certificates were withdrawn will have to pay duties on the previously imported sugar.

Deputy Director of the Serbian Tax Administration Vesna Hreljac-Ivanovic said that the exporters of the sugar in question will not be punished because at the time of export, customs regulations did not contain punitive measures for the lack of proof of origin of goods.