ECOLOGICAL CERTIFICATION IN RUSSIA

September 24, 2001

This report courtesy of the U.S. Department of Commerce's Business Information Service for the Newly Independent States, www.bisnis.doc.gov. Author: Svetlana Kuzmichenko, BISNIS representative in Vladivostok.

Summary. No product with an "ecologically safe" or "ecologically pure" mark can be sold within Russia without a special certificate confirming the statement. Ecological certificates are issued for the most of consumer goods and food products by independent, nongovernment and nonprofit certification agencies. Upon the results of the certification, the agency gives an ecological quality factor to a product for two years. Though the main customers of the certification agencies are Russian manufacturers, U.S. manufacturers and distributors with a heavy presence in the Russian market may also obtain the ecological certificate. The ecological certificate can be an effective marketing tool as Russian consumers pay much attention to the ecological safety and purity of a product.

What is Ecological Certification?

Ecological certification is part of a quality certification system (QCS) designed under the supervision of the RF State Committee for Nature Protection and was registered with Gosstandart (State Standard Committee) in 1994. As there' s no 100% ecologically pure products, ecological certification is aimed at distinguishing products with higher quality and less content of harmful substances from the products with the permissible limit of harmful substances. In other words, if safety (conformity) certification only confirms that the product is harmless, ecological certification shows to what extent it is harmless.

Ecological certification can be conducted only for products and goods that have obligatory certification (safety certification, veterinary certification, or hygiene certification). An authorized certification agency will analyze the results of obligatory certification registered in test protocols and after special calculations will give an ecological quality factor (EQF). The formula of the EQF is a know-how of the Foundation for Consumers Protection registered at Gosstandart. The EQF is calculated on the basis of an authorized lab's results. There are many independent labs in Russia that belong not to Gosstandart, but to an organization, company, Chamber of Commerce, or, for example, to a university. Such labs usually work only for the needs of the owner, but on a fee basis can do some testing for other companies and organizations. All labs should be accredited at Gosstandart, otherwise their results will not be official and legitimate. Vladivostok has many independent labs where the local office of Gosstandart can also apply if it doesn't have its own facilities to do the testing.

According to the ecological certification system, the quality factor of products after safety (conformity) certification equals 1. The minimum ecological quality factor (EQF) should be 1.01. Maximum possible EQF is 1.99. EQF equal to 1.3 means that the product contains 30% less harmful substances than safety standard permits. Average EQF in Russia is 1.2. The highest EQF registered in Primorskiy Krai is 1.4. Unlike safety certification, ecological certification is optional. Ecological certification is appropriate for a wide range of consumer goods and food products but is limited for production equipment.

How Ecological Certification Can Be Useful?

Russian consumers pay much attention to the ecological purity and safety of a product, especially food products. There's a stereotype that domestic food products are more ecologically pure than imported food products because domestic foodstuffs are prepared using old technology that contains less artificial additives such as colorants, conserving substances, taste and odor intensifiers, etc. According to Business Expert Invest company, Russian consumers decide to purchase a product on the basis of its: quality – 31%, ecological purity/safety – 25.9%, price – 23.8%, attractiveness – 12.9%, package – 5.2%, and modern tendency – 0.5%.

Manufacturers and distributors are not allowed to freely describe the product as ecologically pure. According to Gosstandart resolution #255 of July 17, 1997, such product descriptions as "ecological", "ecologically pure", "diet", "healthy", or "grown without pesticides and mineral fertilizers" used on the package and in advertisements are prohibited if the statement is not supported by documentation from competent certification agencies.

U.S. companies with a heavy presence in the Russian market, and especially those companies having production facilities in Russia, should consider ecological certification as a promotion tool of their products. An ecological certificate can be a good marketing and advertising mechanism. According to Primorskiy Test and Certification Agency, local companies reported 10-15% sales increase after information on the ecological safety was placed on the package. The Foundation for Consumers Protection recommends to place the official quality mark with the EQF, number of the ecological certificate, and a statement that the product has an ecological certificate on the package, as well as include this information into the contract with a buyer or distributor or in advertisements.

A local company started production of ice cream and decided to get the ecological certificate for marketing needs. The Test and Certification Agency looked at the Sanepidnazdor's lab results and found out that the EQF is unattractively close to 1. The company applied for recommendations on how to improve the product quality. So, the Test and Certification Agency with specialists from a lab belonging to the University of Economics and Service (specializing on testing food products developed and produced by the university) took results on all stages of ice-cream production and found out that the main obstacle to high quality is lack of certain filters. The company purchased the filters. The lab again took the results at the production line and the Test and Certification Agency calculated the EQF and issued the ecological certificate with EQF 1.2.

Some regions may offer tax incentives or other advantages to manufacturers obtaining the ecological certificate. For example, the Primorskiy Krai Administration plans to start a competition "The Best Product of Primorye". The winner will be selected on the basis of many factors including the availability of ecological certificate. The winner will be granted an advantage in sales tax payment. The proposal is currently being passed to the Primorskiy Duma.

Where and How to Obtain the Ecological Certificate?

Eco certificates are issued by nongovernment and nonprofit organizations accredited by Gosstandart. Gosstandart and Sanepidnadzor do not issue an ecological certificate as it's optional. Currently, ecological certification is done by the Test and Certification Agency of the Foundation for Consumers Protection, which is a nonprofit and nongovernment organization registered with Gosstandart. The Foundation is developing four programs in Russia including establishment of independent test and certification laboratories; ecological certification; "Pure Water for Russia"; and scientific, research, and legislative work. The Foundation has representative offices in 14 Russian cities including Moscow, Vladivostok, Kaliningrad, Ekaterinburg, Kazan, and Nizhny Novgorod.

Ecological certificates can be given for a serial group of goods to a manufacturer and for a consignment both to a wholesaler and retailer. It's easy to apply for the ecological certificate. The company should come to the local office of the Foundation for Consumers Protection, get an application form and provide the following documents to the Test and Certification Agency:

- application;

- copies of available certificates (veterinary, phyto-sanitary, safety);

- copies of test protocols issued by authorized laboratories;

- copies of documents confirming the origin of goods;

- copies of documents describing the production process (if necessary);

- a document confirming the payment for ecological certification.

If test protocols are not available, the applicant should provide several samples of goods or products to be certified.

The cost of ecological certification is $100 to $1,000 for consumer goods (depending on test complexity and the volume of goods to be certified) and $50 - $200 for food products (depending on the consignment volume). The more developed the safety standards are, the less to pay for the ecological certification. Certification of footwear and clothes will be about $200 for a model to manufacturer and shipment of various models to a retailer or wholesaler. Electronic products with undeveloped safety standards at Gosstandart may reach $1,000, as the certification will be complex and complicated. In this case, additional documents may be required (technical description, test protocols from the manufacturer, etc.)

The certification period lasts from 10 to 30 working days for consumer goods and 5 to 30 working days for food products. An ecological certificate is issued for two years and can be extended if the repeated tests show the same or even better results. Information about high quality goods and their manufacturers is reported to the local Center of Standardization, Metrology, and Certification issuing safety certificates and to the local Sanitary and Epidemiological Service issuing hygiene certificates. The Moscow office of the Foundation for Consumers Protection also provides quality production certification at $3,000 (for manufacturers only). They certify the entire production process.

Ecological certificates issued by a regional office of the Foundation for Consumers Protection are valid on the whole territory of Russia.

Contact Information

Test and Certification Agency

Primorskiy Regional Foundation for Consumers Protection

19 Okeansky Ave., Office 3-P

Vladivostok, Russia 690950

Tel: 7-4232-225508, 406559

Fax: 7-4232-225508

E-mail: fond@mail.primorye.ru

Contact: Vladimir Anatolievich Tilindis, General Director

The Foundation covers the Russian Far East and Eastern Siberia

National Foundation for Consumers Protection

13/9 Bolshaya Ordynka, entrance 3, office 26

Moscow, Russia 113035

Tel: 7-095-953-5008, 953-3154

Tel/Fax: 7-095-953-2323

Contact: Alexandr Yakovlevich Kalinin, General Director

This report courtesy of BISNIS, www.bisnis.doc.gov.

Further Assistance for U.S. Companies

This information is being provided by the U.S. & Foreign Commercial Service in Russia, which offers its services to U.S. companies wishing to sell U.S. products and services in Russia, including identifying distributors and arranging meetings with prospective buyers during business visits. Commercial Service Russia has offices in Moscow, St. Petersburg, Vladivostok and Yekaterinburg.

Contact: For further information you are welcome to contact the Commercial Service in Vladivostok:

U.S. Commercial Service Vladivostok

32 Pushkinskaya Street

Vladivostok, Russia, 690000

Tel.: (7-4232) 300-093

Fax: (7-4232) 300-092

Int'l Fax: (7-509) 851-1211

E-mail: Vladivostok.office.box@mail.doc.gov

www.cs.vladivostok.com

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)