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Implementation of Client Export in the Netherlands

Implementation of an application of Client Export in a Dutch export sector is a joint project of the exporters, the veterinary or phytosanitary authority and the Client Team. The veterinary or phytosanitary authority will determine the requirements a consignment has to comply to and decide about the safeguards that prove that a requirement is met. This makes the content of the application. In cooperation with the exporters the Client Team designs a new process for applying and issuing the certificates, including the (planning of the) inspections.  On this process the automated functionality is designed. Then the sector application is built, and tested together with the content of requirements and safeguards. After this period the system and the new procedures are  introduced to the exporting companies and to the inspection service.

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    The dairy sector is of great importance to Dutch farming. Around 60 per cent of Dutch farmland is devoted to the dairy sector, used by over 22,000 dairy producers for the production of around 11 million tonnes of milk per year. Export is of eminent importance to the Dutch dairy sector; just 38 per cent of the milk produced is destined for the domestic market, while 40 per cent goes to EU countries and 22 per cent or nearly one quarter is sold in the third countries outside the EU. The total export value of the Dutch dairy sector is €4.3 billion per year. This adds up to 6.5 per cent of the entire trade surplus of the Netherlands. Particularly notable is the export to non-EU members. The Netherlands, with its 8 per cent share of the domestic EU market, is a moderate player in the dairy industry within Europe. However, its 24 per cent share of EU dairy exports makes it by far the most important European exporter.

    Dutch dairy produce finds its way to a very great number of countries throughout the world. Important destinations include:
    o countries surrounding the Persian Gulf
    o a number of African states
    o South-East Asia and Indonesia
    o the USA, Mexico, Cuba and Haiti
    o Russia
    o Japan and China

    Roughly a quarter of exported dairy produce is comprised of cheese or cheese products. This partially includes the types of cheese that we know and love, but for large part, export is made up of products that are specially produced for the particular destination country. Nearly 40 per cent of exports are made up of powdered milks, and we see here another huge range of varieties regarding matters such as packaging, additives or production methods. In this way, the produce is fine-tuned to meet the specific requirements of its recipients. Furthermore, a large number of often highly specialised products are exported, such as raw materials for the food industry.
     
    The quality of the milk and dairy produce is guaranteed by all links of the production chain. Many measures are taken, based on analysis of all possible risks. This prevents possible faults in the process. Besides these measures, quality control checks are carried out during every phase of production from start to finish. The most important components are:
    - all animals intended for milk production are registered in the government’s Identification and Registration System, and the Animal Health Department monitors the health of these animals. In this way, should illness break out then all individual animals who run the risk of contracting the illness can be identified.
    - Dutch dairy farmers are all trained to internationally recognised standards. Their businesses are part of programmes in which the welfare of their animals and the quality and purity of the production is guaranteed. All businesses have refrigerated tanks, which cools the milk to a temperature of 3-4 degrees Celsius.
    - As standard, the quality controller QLIP analyses and assesses a number of aspects of every delivery of milk that is sent to the processing factories. Furthermore, QLIP performs a number of monitoring programmes, which check for a number of residuals and contaminants.
    - Supervision of the processing of the milk and the production of the eventual consumer produce is carried out by the COKZ (Dairy Products Quality Assurance Board). Dairy produce is checked for its composition, additives, microbiological quality, residual contaminants, appearance, aroma and taste. Laboratory analysis of random samples is carried out according to internationally recognised investigation procedures.
    The government also supervises the quality guarantees and the stringency of inspection. This has been the case for many years, with the earliest legislation in this area stemming back to 1723. Today, government supervision is based on both national and European legislation.

    Veterinary export certificates are issued to the dairy industry by the VWA (Food and Consumer Product Safety Authority). Furthermore, the COKZ also issues export certificates relating to the composition of the produce and the production process. This includes health certificates, radioactivity reports, dioxin reports, inspection certificates, microbiological reports etc.
    For all of these documents, the Client principle of standards and guarantees is employed.
    In Dutch dairy production, the quality assurances are obtained from the sector’s and the businesses’ quality control systems wherever possible. The Dairy sector application makes as much use as possible of all of the data in the COKZ systems regarding products and production locations.
    The basis of the system is that the export company is responsible for the consignment data. The VWA and the COKZ are responsible for the verification and the preparation of the documents. The Dairy sector application supports the production of 10 different certification models and reports regarding export to 175 countries.

    We will demonstrate how the application process works by means of an application for export documents for a consignment of cheese to Japan.

    Before an exporter begins the actual application process, an introductory phase must be completed. In this phase, the exporter enters his own basic data into Client. This data concerns trading partners, which must be displayed as the consignee on the certificate, his production and inspection locations, the article numbers, the description of his products and the business’s recognition.

    Then the application process begins. Firstly, the exporter fills in his reference number, which is usually a number that refers to his own administration. The export date and destination country are then filled in. These pieces of information form the basis of Client’s compilation of the standards that this consignment must fulfil.
    With a number of product-country combinations, the exporter can then select the documents that he wishes to receive for this consignment.
    Lastly, the applicant indicates how many extra authorised copies he desires, if they are necessary.

    On the ORDER screen, the general details that apply to the particular consignment are entered. The details are recalled as much as possible from the general data stored in the system.
    The export requirement characteristics are intended to ensure that the correct standards are applied to each consignment. For example, if the CATTLE field is selected, then the standards for GOAT and SHEEP are not applied.
    Whether a particular column is compulsory or not is indicated by a red star.
    The complementary export data already entered appears later, including the prompt on the certificate. If the data has not been entered, then the prompt will not appear on the certificate. In practice, the applicant can partially determine the layout of the certificate.

    The ORDER ROW screen is used to record the more specific data per article. An important part of this phase is that the Dutch products are verified with the COKZ database. The direct result of this is that fewer manual checks have to be carried out due to the fact that these products are regularly checked by the COKZ.
    The product description can still be altered, but this must be checked by the COKZ.

    On the second part of the screen, certain details are filled in as default. The final details about the producer and packager are only important if this information must appear on the certificate.

    It is usually necessary to enter complementary batch data. This data can then be recorded per batch. In this way, the batch can consist of, for example, one product, for which the production took place in two batches.

    Lastly, the transport data must be entered via the TRANSPORT AND MISCELLANEOUS screen. Not all of this data is compulsory. However, all information that is required on the export certificate is compulsory, making this a choice that the applicant himself must make.

    On the REQUEST ISSUE OF DOCUMENTS screen, any possible extra information can be recorded. It is sensible to do this first, particularly if the so-called extra text is involved. This type of extra information is ALWAYS checked by the COKZ prior to acceptance of an application.

    After the applicant has refreshed the safeguards (on the CHECK GUARANTEES screen), the status of his application will be displayed. This may be RED, for example because the weight of the batches does not match that of the orderROW. However, in the majority of cases, the applicant will receive ORANGE status, which means that an inspection must be requested.
    In the inspection request process, many checks can be directly and automatically handled. This may mean that the application will immediately become GREEN and you can directly proceed to requesting an export certificate.
    However, in most cases the application will remain ORANGE, meaning that the COKZ must carry out an inspection. These inspections are nearly always manual. Normally, no inspection has to be carried out on the company’s premises.
    Upon request, the applicant will receive automatic e-mail conformation once the inspection has been carried out, and he can then immediately request the documents he needs.

    The documents can now be requested.
    Prior to the actual request, a preview of the documents can be viewed.
    By clicking on the ‘OK’ button, the documents can be produced and sent to the COKZ.

    The COKZ will take care of handling the documents further and will then send the documents to the applicant.

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The first two export sectors that were implemented in Client Export were "dairy" and "seed potatoes". Both sectors made a short movie, showing the characteristics of their sector and showing how export certification with Client Export uses the strengths of the quality systems of the sector.

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    The cultivation of potatoes is of great importance to Dutch agriculture. Nearly a quarter of available arable land is taken up for this purpose.

    This comes to a total of 35,000 hectares used for the cultivation of potatoes. A small portion of this, a little less than 30 per cent, is intended for the domestic market. The vast majority, more than 70 per cent, is for export. These exports, totalling more than 700 million kilograms, are bound for over 80 different countries. The total trading value of these exports works out to between 400 and 500 million euros.
    Around 250,000 tonnes of seed potatoes are traded to countries outside the EU.
    The abundance of destination countries and the diverse tastes and recipes in these countries places a broad range of demands on the potato. In the Netherlands, that has led to a very diverse specialist market, which is constantly developing new varieties to further meet the different demands. As well as the consumers, the cultivators and processors of the potatoes are also placing new, more stringent demands on the potato, for example, their adaptability to the climate of the destination country, and particularly their resistance to diseases in order to reduce the number of necessary crop protection agents. The specialist agriculturalists annually plant 1.5 million seedlings, from which three or four new species per year remain after undergoing a rigorous selection process. Due to the wide range of requirements on the part of producers and consumers, around 250 different varieties of potato exist at this moment, which were created to meet the particular demands of the 80 destination countries.

    The seed potato is the basis of cultivation for many thousands of hectares of land in the destination countries. This puts great demands on seed potatoes. In a large number of cases, these standards are set by the quality requirements of the sector itself, which for a long time has been supervised by Nederlandse Algemene Keuringsdienst or NAK (Netherlands Agricultural Testing Department). This regulatory body supervises the land use and the basic materials employed in production. During cultivation, the NAK inspectors make at least three field inspections. During and after the harvest, supplementary inspections of the land and of the potatoes are made. When they are eventually packed, every bag receives an NAK certificate, which signifies that this variety of potato and this particular batch comply with all standards and regulations required of it.

    The destination countries also set standards, in addition to the domestically imposed regulations. These are known as export requirements, and they vary according to each particular country. These requirements are mainly related to prevention of the spread of pathogens, known in the trade as Q-organisms. These are pathogens (insects, fungi, bacteria) that are sometimes present in one country, but due to factors such as climate or other crops, cause negligible damage. However, these pathogens may cause mass damage to agriculture or to nature in the destination country.

    In earlier times, these latter-named demands were dealt with by a final inspection by the Plant Health Department, shortly before shipment. In their plant-testing programme Plantkeur, the Ministry of Agriculture, Nature and Food Quality has, under strict conditions, transferred this inspection to the regulatory body, in this case the NAK. As the NAK was already supervising cultivation and processing via its inspections, it proved advantageous to add these export inspections to their inspection of the sub-batches at the moment of preparation. 

    By July and August, the farmers have done their job. The seed potato harvest is stored away in warehouses with well-regulated climates. At this point, the hectic logistics season will begin for the exporters and the commercial establishments. They must re-allocate the thousands of batches in storage into the correct consignments in compliance with the requirements of the destination countries; sorted by the variety and size of the potatoes, the size of the consignment and the time that the batch must be delivered.

    Based on the wishes of the consumer, the exporters and commercial establishments give their suppliers the order to sort their produce and prepare batches for export. This is not a completely predictable process, as machines can break down, sorting of a batch can go wrong, and of course there is always the possibility that a sub-batch does not pass its inspection. If the boat in Harlingen is made to wait, then this can cost a considerable amount of money.

    In order to smooth this hectic logistical process, the exporters, together with the NAK and with the support of the programming team CLIENT, have developed the Pootaardappel (Seed Potato) sector application. One of the essential points of the sector application is that it makes as much usage as possible of the data stored in the NAK’s systems regarding batches and batch inspections.

    The system’s core process is:
    - The exporter gives the general specifications of the consignment, for which he must apply for a plant health certificate.
    - The application is filled in with the order details and constituent sub-batches, in accordance with the cultivators’ preparations.
    - The details regarding these sub-batches and the inspections that they have undergone are stored in the NAK’s database.
    - By means of a ‘web service’ (an intelligent connection between CLIENT Export and the NAK’s system,) the exporter gains insight into which batches are ready for export, and can then copy the batch, along with its inspection results, into his order.
    - In the final stage of the application, CLIENT Export checks whether all requirements applicable to the destination country have been met by matching the inspection results of all sub-batches against the various country-specific export demands.

    From the perspective of the system, this working method is constituted as follows:

    After the client has placed an order, the exporter will request the appropriate sorting methods from the cultivators. The cultivator will then apply for the necessary certificates and approvals from the NAK. The NAK inspector will assess the batches and store the inspection results in his personal digital assistant (PDA). The data in the PDA is then directly entered into the batch information in the central database.

    When the cultivator applies for NAK certification, the NAK will combine this investigation with the required export inspections and supplementary checks that are standard to the sorting process.
    As soon as the first in a series of inspections is concluded and recorded, the results appear in the central database. The exporter compiles a consignment based on the client’s demands and enters it into CLIENT. He enters the name of the consignee, the product, the country and any miscellaneous information.

    The consignment is compiled from the sorted and ready-to-export batches from the cultivators, which are stored in the NAK database. With the aid of the batch selector in CLIENT, a connection is made with the central NAK database. By performing detailed searches, the batch selector displays the specific batches that the cultivators were asked to sort and process. By selecting the weight and clicking on OK, all necessary batches are selected. When all batches of the appropriate weight are selected, then clicking on the ‘add to order’ button will add the batches to the consignment. The consignment is now complete with regard to the input of the necessary data.

    Some exporters can fully automate the compilation of consignments by means of the message book. Exporters can compile the consignments in their own records, create a digital order and submit this via an electronic message to CLIENT. Thanks to CLIENT’s intelligent function, all necessary actions can be carried out automatically.

    When the consignment is ready, the consignment’s export eligibility can be checked via ‘check certitude’. With the button ‘refresh safeguards’, all necessary requirement checks are carried out for the exportation of seed potatoes to a particular destination. This activates the central motor of CLIENT, that matches standards against conditions. A section of these conditions are established by the NAK inspection results.
    For the export of seed potatoes, CLIENT can ensure all necessary guarantees are in place by retrieving the results of the NAK investigations. These requirements are applied at the touch of a button, the relevant inspection results are retrieved from the NAK database and checked for compliance with the particular requirements.

    These requirements and the related standards and conditions are monitored in CLIENT by the Plant Health Department. The Plant Health Department enters the export requirements into CLIENT Export, including the relevant conditions that ensure safe export of the produce.

    When all results have been received and they comply with the particular country’s export requirements, CLIENT will declare the consignment fit for export. In the event that results are missing, the specific requirement or inspection will be displayed in orange. If inspection results do not comply with requirements, CLIENT will display the export eligibility in red.  Such a batch is unfit for export. The batch must then be removed from the consignment.

    Additionally, when a country alters its export requirements or the borders are closed, this can be directly entered into CLIENT so that the exporter monitors the situation and avoids unnecessary costs.

    The consignment has now been completely filled in, all inspection results have been received, and the consignment is fit for export. This is the moment at which the exporter can conclude his application.
    Any possible missing data will be displayed. Here, the exporter can also choose what batch data needs to be displayed on the certificate.

    Some countries require a cultivator number and a lot number. Other countries do not require this, and hence the exporter can deactivate these options in this case. CLIENT adds all matching order information next to each other in one section.

    All necessary data is automatically compiled from the database in accordance with the consignment and batches, and are displayed alongside the other data on the print preview screen. For large consignments, a supplement is automatically created upon which the ‘overflow information’ is displayed. Everything is in compliance with international agreements. The exporter can request and view a preview of the certificate, and if everything is in order, he can request the export document.

    By clicking on ‘OK’, the exporter concludes the set-up of the consignment. He can now print out the certificate and request a stamp. During the export season, most businesses are visited daily by NAK inspectors for official stamping of the certificates.

    The final step in the compilation of the export certificate is official stamping. This is the final check of the total consignment. Via the PDA, the NAK can check CLIENT’s database to definitively ascertain that the consignment meets the country-specific requirements displayed on the certificate. Almost immediately, the inspector will receive notification that the consignment is in order, and that authorises him to stamp and sign the certificate.

    With CLIENT Export, the seed potato sector has realised a fully digital operating method regarding quality control. From the field tests to the batch checks, from the export checks to the compilation of the export certificates, all details are digitally available and all duplicated activities are cancelled. This ensures that the process runs far more efficiently.

 

In the period after this first two implementations, other export sectors started with the development and implementation. The table below shows the sectors where implementation is completed and the the sectors where implementation is ongoing or planned.

Sector with veterinary certificates

Implementation date
Dairy Q1  2009
Meat and meat products Q2 2010
Animal feed Q4 2010
Manure Q1 2011
Food declarations Q1 2011
Fish and fish products Q2 2011
Live animals Q3 2011
Other veterinary products Q2 2011
   
Sector with phytosanitary certificates Implementation date
Seed potatoes Q3  2009
Seeds for sowing Q3  2009
Cutflowers Q1 2011
Vegetables and Fruits Q1 2011
Trees and seedlings Q2 2011
Other phytosanitary products Q2 2011
Flower bulbs Q3 2011

In all sectors there are major exporters who plan their production and exports with their own computerized (ERP) systems. All the sector applications therefore have the possibility to apply for export certificates directly from the system of the exporter. This functionality consists of a sequence of XML-messages that are exchanged in a Web Service. The XML-messages are documented in a Message Implementation Guide. On this moment already some dozens of companies apply for their export certificates through the Web Service.

 

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