RIGA - One of the biggest stories in Baltic customs last year was Latvia's failure to establish EU-certified veterinary custom checkpoints at its two biggest ports and two eastern terminals. For a country on the union's eastern border, this was a major oversight.
But finally, after months of preparation and waiting, veterinary inspection stations in Riga and Ventspils ports and Rezekne and Daugavpils railway stations opened on Jan. 17 to subdued fanfare, since experts unanimously agree that the seven-month delay would inevitably lead to a loss of valuable transit business for the country.
Opening the checkpoints first needed European Commission approval, since they are designated to handle imports of non-EU animal-based food products. Approval came in mid-November, according to Latvia's Food and Veterinary Service, but launching operations at the four stations was delayed since publication of the EC's decision in Official Journal of the European Union had to come first.
However, Ilze Meistere, the veterinary service's spokeswoman, said the border checkpoints decided to begin working anyway.
"Latvia's competent institution made a decision to use its rights and allow the recognized border control points to start working before the decision was published 's since the border points have been approved but publication of the decision has been delayed for bureaucratic reasons," she said.
Meistere added that the commission and other EU member states have been informed of the decision.
The question now is whether import/export companies will bother returning to the four locations, particularly the ports in Riga and Ventspils. Latvian Logistics and Customs Broker Association President Aivars Taurins has said that food cargo handled at the locations before May 1 would probably not return even after the upgrading of the facilities.
"It is five times harder to get cargo back than to find new clients," he said.
Riga Mayor Gundars Bojars concurred, saying last year that it was unlikely that this segment of the transit business would return to Riga Port, where he is chairman of the board. He said last summer that the financial losses would be significant, since food cargo was the most expensive and had the highest margins for the stevedores and forwarders.
The mayor added that the port's loss was one U.S. dollar per ton of food cargo, but the aggregate loss to Latvia's economy would be even greater.
Food handling accounted for some 4 percent of turnover at the port in 2003, according to reports.
Originally EC recognition was granted to veterinary inspection points in Terehova, Paternieki and Grebneva.
