Trade with countries outside SEPA zone exempt from BVO commission

Auction members trading with countries outside the SEPA zone will be exempt from BVO commission payments in 2021. Royal FloraHolland introduced this temporary rule last December. It seems to resolve one of the major complaints held by growers abroad.

Until recently, all Royal FloraHolland (RFH) members registered their BVO (outside the auction) transactions as they were made, and they’d pay a basic commission on them afterwards. That has now changed. Members still need to register their transactions in non-SEPA countries, but they no longer have to pay the basic commission and Flower Council fees on them. RFH introduced this rule for 2021 after approval of the Members’ Council, with the option to extend it. 

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New members

Only existing BVO flows registered with Royal FloraHolland are exempt from the BVO commission. New members can also avail of the exemption. During their first year, certain auction clock supply rules apply. If RFH is going to offer services, like payment services, on a trade route outside the SEPA countries in the course of 2021, the exemption will no longer apply to that particular trade route. In that case, the grower will go back to paying the BVO commission. A current example of this is the Kenya – Saudi Arabia route, where RFH facilitates payment in American dollars.

Click here to read the full article in Floribusiness magazine.

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