Myanmar: MAPCO penalty for Indonesia rice shipment still pending

Myanmar: MAPCO penalty for Indonesia rice shipment still pending

Friday, 08 July 2016 – A delegation led by Myanmar Agribusiness Public Corporation visited Indonesia at the end of June to negotiate the release of around 14,000 tonnes of rice that had been held at the Port of Surabaya for more than three months.The group met with government officials to discuss US$1.8 million in demurrage charges that were imposed after the Myanmar exporter failed to follow Indonesian food safety regulations. The shipment was part of a government-to-government pact signed in 2013 allowing Myanmar to export rice to Indonesia, but has been detained in the port since April, as it did not carry proper documentation.

A breakdown in communication meant MAPCO was unaware of changes to Indonesian regulations made in mid-2015 requiring imported rice to be tested by a laboratory approved by the Indonesian government in the country of origin. Read More?