Temporary leniency scheme in the event of not meeting 100% Digital requirements25 November 2020
Together with growers, agents, buyers and software suppliers, Royal FloraHolland is working extremely hard this year to have all direct transactions fully digital through Floriday by the end of 2020. Customers who are not yet ready to trade 100% Digital for direct transactions on 1 January 2021 can make use of a temporary leniency scheme until 31 March 2021 at the latest. This temporary leniency scheme is aimed at growers, buyers and agents who are waiting for the link with their software package, or at parties that are already working 100% Digital, but the other party isn't yet. The application for this leniency period should be made through software suppliers.
Floriday has completed the development phase for 100% Digital in the third quarter. All essential functions to process direct flows through Floriday are available on the platform and in the API link. More and more growers and buyers are already able to use this for their direct transactions. Most software suppliers are in the process of rolling out the Floriday link to growers and buyers. We are currently seeing, despite the fact that a great deal of hard work is being done, that various software suppliers haven't had the API connection (that Floriday has made available) long enough and need more time to complete the rollout with their customers. As a result, with only one month to go, not all growers and buyers have a working link between their software and Floriday. Growers and buyers who are still waiting for this can for this reason make use of a leniency period until 31 March 2021. After this date, rates for the use of the Connect EAB will be higher. Eventually the Connect EAB will be discontinued.
David van Mechelen, CFO Royal FloraHolland:
"100% Digital remains a top priority for Royal FloraHolland. Only by collaborating digitally on a large scale as a sector can we increase efficiency in the sector and maintain the strong position of the Dutch floriculture industry. We are well on track and everybody works hard. Also we are seeing that many parties will still be unable to be fully ready on time.
Our starting point is to fully comply with the applicable legislation and regulations as a sector. We want to avoid the situation where companies, in spite of their efforts to be 100% Digital, are unable to make use of settlement through our marketplace after 1 January 2021. This is a balancing act and we have been extremely meticulous in coordinating with one another and in weighing up the issues involved.. As a result, we are making this temporary leniency scheme available.
Together with the entire sector, we are doing everything in our power to ensure that 100% of direct transactions are still processed through Floriday in the coming months. It gives us a lot of confidence that all market players are fully engaged in this.".
What does this mean?
For growers, buyers and agents, this means the following from 1 January 2021:
- Growers, buyers and agents, who are not yet able to make use of a working link between their software package and Floriday on 31 December 2020, will receive temporary leniency until 31 March 2021. Your software supplier will register this leniency and inform Royal FloraHolland of those eligible for it. Floriday then sends a confirmation of the leniency period. Until 31 March, it will therefore be possible to continue to use the Connect-EAB. View the flow chart to see if the temporary leniency scheme applies to you. After 1 April, rates for the use of the Connect-EAB will be higher.
- All essential functions to process direct flows through Floriday are available. Growers, buyers and agents who will be working in the Floriday screens are urged to comply with 100% Digital by 31 December 2020.
- Nothing will change for growers, buyers and agents who only trade and buy through the clock.
- The attached flow chart shows exactly what this means for you.
- In addition, you will find a number of specific situations in the Q&A.
With 100% Digital, we are taking the next step in the digital transformation of the floriculture industry and achieving Royal FloraHolland's objective of connecting growers and buyers in a future-proof way, and in this way supporting them in the sustainable growth of their business operations. 100% Digital helps to indisputably and optimally comply with tighter European financial legislation and regulations (PSD2). In this context, Royal FloraHolland is taking additional measures and will carry out additional checks on the correct use of the Connect-EAB until 31 March 2021 at the latest.