Govt to appoint foreign audit firm for transparency in PSI activities

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The government is likely to appoint an international audit firm to scrutinize the price quoting of the pre-shipment inspection (PSI) companies by next month, against the backdrop of suspected import-inspection scam, reports UNB.
Three international audit firms, two from the US, and one from the EU countries, submitted their tenders following tender call from National Board of Revenue (NBR).
"A committee is examining the tenders, and hopes that all processes will be completed by next month," NBR Member (Customs) Rashidul Ahsan Chowdhury said.
After examining the papers, NBR will tell them how much they (NBR) can offer the audit firm for the audit of each inspection certificate. "Or we may ask them to submit their price for auditing each certificate," he said.
The government's revenue authority has tried to appoint an audit firm to ensure checks and balances in the function of the PSI companies for a couple of years now. But due to some legal complications and tight procurement system of the government NBR failed to appoint an auditor, sources said.
About the payments for the audit firm, he said, as the firm is international, so their remuneration would be obviously high. "NBR will bear the cost. We are taking one per cent of the total import duties from the importers as PSI charge. From that charge we will cover the audit cost," the NBR official said.
The government has taken the move considering the importers' complaints about harassment and delays in getting their consignments after import valuation by the PSI companies.
Recently, NBR found irregularities of PSI-company M/S Cotecna Inspection SA in importing luxury vehicles.
The government appointed four PSI companies in September 2005 for a three-year tenure (up to 2008) to continue with the provision for compulsory pre-shipment inspections, introduced in 2000. The companies are - Cotecna Inspection SA, SGS (Bangladesh) Limited, Bureau Veritas BIVAC (Bangladesh) Limited and Intertek Testing Limited.
They were appointed to help the customs department, which lacks sufficient logistic support and skilled manpower, to carry out inspection of volumes of imports.