Companies feel powerless in a bureaucratic trap: they have to count thousands of losses

You received a large order that cannot be fulfilled

The company, which belongs to the international Caviar Admiral Husso brand, has been operating in Lithuania for more than a year. The company’s representative, Antanas Ancelis, says that due to the favorable conditions, the company managed to persuade the partners to establish a branch in Lithuania.

When establishing the company in Lithuania, it took time to process all the necessary documents with the Veterinary Service and obtain the necessary permission for the caviar trade in the ALIS system, but the caviar trade in the European Union (EU) itself is fluid. Through its partners, the company also sells EU caviar to third countries around the world, but in order to trade directly with non-EU countries, the company has started to coordinate a re-export permit with the Lithuanian authorities, which It has been stagnant for over a month.

“Last November, we started trading Siberian black sturgeon and sterile albino caviar. Caviar producer: certified and fully licensed in the EU. In the same month, we received inquiries from Hong Kong and Dubai to the Admiral Husso Caviar in Lithuania, we issued invoices, we receive payments and we produce extremely rare and expensive sterling albino caviar. The caviar arrived in Lithuania, then the processing of export documents began. Exports to third countries require a permit from the Environmental Protection Agency (EPA), “he says A. Ancelis.

Difficulties in handling documents have arisen from the beginning. The employer had difficulty contacting and communicating with the EPA representatives. Responsible person rarely answers phone calls, does not provide any detailed information, email. Emails are answered in an informal and non-operational manner. Also, export license applications are only accepted live. Finally, the head of the company managed to arrange a meeting with a representative of the EPA on December 9.

“During the meeting, I delivered all the requested documents and made corrections to the documents. When they asked me what the process was waiting for, I received the answer that“ we have your phone number, email. I also asked which institutions will request a permit, the answer was: “to a scientific institution and then we will see how it is,” recalls the businessman.

Unable to verify the manufacturer’s certificate

In order to obtain a marketing authorization, it was necessary to present a manufacturer’s certificate issued by the German authorities. From the first meeting, Mr. Ancelis assured that he had offered all possible assistance and mediation to the German authorities, as it was not the first time that a caviar producer had drawn up such documents and provided them to the competent authorities of other countries. However, the EPA allegedly refused to cooperate.

“December 31st I receive a response stating that the EPA cannot issue a permit because the Nature Research Center has not received a certificate from the manufacturer and there are errors in the quantity. The latter is a non-substantial technical error and solution fast.

I will note that each box of caviar bears the Cites number issued to the EU producer, which forms the basis for the export authorization. I suggested to the EPA representative that he accept this document, but was assured that it was not necessary. Also, to verify the Cites number of an EU certified manufacturer, just copy it into the Google search box and see which EU authority issued the certificate ”, says A. Ancelis.

The value of caviar decreases daily.

The representative of the company is outraged that the Lithuanian authorities are following the maximum deadlines for submitting responses or decisions, and without obtaining a permit to market extremely rare caviar, the company suffers losses every day.

The businessman notes that the EPA remote consultation with the Nature Research Center (GTC) on the application for an export permit was organized 27 days after the application date and that the GTC applications were forwarded to the responsible German authorities 28 days after the request. The company has not received the permit until now, 40 days later.

“The shelf life of production caviar is 4 months. The contracts with the clients that the EPA has from the first day of the meeting state in black and white that the caviar must reach the client at least one third of the time before its expiration. I also emphasized this during the meeting.

We incur losses every day as the value of caviar falls as the expiration date decreases. On the commercial side, deadlines have already been missed and we will have to cover the fines imposed on clients in claims. Customers are already asking for a refund, which is a thousand sums ”, emphasizes the director of the company in Lithuania.

Calculate thousands of losses

The businessman estimates that direct losses currently amount to more than 16,000. EUR.

“At the moment, the losses are like this, but in reality there may be many more. Buyers under the contracts pledged to buy more caviar for 48,000. Eur is an indirect loss. Negotiations with clients are now underway to make up for our outstanding sales. Customers are pressured by their buyers and threatened by the courts, which in turn will also impose fines on us, ”says A. Ancelis, adding that so far there is no response from the Lithuanian authorities, nor does anyone respond to the letters.

The businessman assures that not only the reputation of the company but also of Lithuania has been damaged. According to A. Ancelio, a company that managed to find niches during the pandemic and does not ask for state aid, but wants to pay taxes to the budget, is already forced to seek relocation in neighboring countries.

“We established a branch in Lithuania because I convinced our partners about the favorable conditions for business. The partners are now considering whether it is worth expanding further, as we are faced with a situation that cannot be explained with common sense. In 5 years of doing business in other countries, they have not yet encountered such a negligent approach to business, ”says the interlocutor.

The businessman asked the Minister of Environmental Protection, the Government, for such work from the Lithuanian authorities, but allegedly received the same bureaucratic letters: “Received, known, we will inform you.” 41 days have passed since the application was submitted, but without results. Not only that, the businessman also turned to lawyers, allegedly they see violations, so the company intends to file a complaint with the Ministry of the Environment.

Gentville: Institutions must work together more seamlessly

The Minister of the Environment, Simon Gentville, assures that he knows this problem thoroughly. He points out that the ministry intends to review the legal framework and deadlines for issuing permits so that such institutional problems do not recur in the future.

“Institutions themselves must cooperate more fluently. Does a company have to bear the consequences if one institution takes the time to correspond with another? And if the process takes time, the authority has a duty to keep the applicant informed of progress permission, as couriers now inform consumers about the route of the package.

However, in this case, products made with protected fish stocks have been introduced to the market, so it is convenient for companies to understand that the regulation of their exports in Europe is extremely strict ”, comments S. Gentvilas on the situation .

EPA: The application evaluation is carried out according to the established procedure

Environmental protection agency Delphi notes that the Center for Research in Nature is entrusted with the role of responsible scientific body, Cites, which requests information from the competent authorities to ensure that international trade in protected species, in this case black caviar, does not negatively affect the protection of species. Therefore, on January 6 of this year. GTC made a request to the responsible German Cites authorities.

The representative of the Center for Natural Research notes that he received a conclusion letter from the EPA in 2020. December. 15 and submitted its response on December 30, 2020. However, neither EPA nor GTC representatives responded exactly why it took so long to submit inquiries and a response.

“The application for an export license was not accompanied by a Cites certificate or legal proof of the origin of the caviar, which did not lead to the conclusion that an export license could be issued. The authorized German authorities, with whom they have been made consultations and they are still ongoing, they have not yet issued definitive and unequivocal conclusions, ”says Julija Miklušienė, GTC General Affairs Specialist.

EPA explains that the evaluation of a permit application is carried out in accordance with the law and in accordance with established procedures. The evaluation of the applications allegedly includes not only the Cites number of the EU certified manufacturer, but also the complete and complex verification of the information.

‘The Regulation establishes that the managing authorities must take the decision to grant an authorization within one month from the date of submission of the application. However, when the issuing managing authority consults third parties, that decision can only be made after those consultations have been successfully completed.

In the event that the processing of applications takes longer, applicants will be informed. The Regulation also states that permits must be requested well in advance before specimens are issued before exporting them from the Community. The period of validity of export authorizations shall not exceed six months. We would like to draw your attention to the fact that the applicant, who intends to export specimens of protected species, must be familiar with the applicable legal regulations and plan and carry out the activities in accordance with the established requirements ”, comments the EPA.

When asked why EPA refused to cooperate with the company due to contact with German authorities, EPA representatives noted that GTC is doing so.

‘For the sake of objectivity and impartiality, the legislation does not provide for the participation of an economic operator in the permitting process unless there are reasons to do so. The Environmental Protection Agency, in keeping with its competence, consistently cooperated with UAB Caviar Admiral Husso, interim letters and emails. provided information on the progress of the permit issuance by email, ”says AAA.