Four PSI agencies to be reappointed today

Existing four pre-shipment inspection (PSI) agencies will be re-appointed for the next 16 months today (Sunday), reports UNB. The re-appointment procedure would be accomplished by the Cabinet committee on purchase with Finance Minister AMA Muhith in the chair at the Cabinet Division. "Four operating PSI firms will be appointed soon as major chambers and associations want the continuations of PSI for their hassle-free importation," a National Board of Revenue (NBR) official said. "The Department of Customs has also constraints to replace the scheme as it lacks adequate manpower, including experts," he added. Revenue officials said, major chamber bodies, including Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), Metropolitan Chamber of Commerce and Industry (MCCI) and Foreign Chambers of Commerce and Industry (FICCI) in their respective budget proposals have categorically demanded continuation of PSI as the Customs Department of the NBR is yet to be ready to handle the procedure and to ensure fair and speedy importation of goods. The FBCCI President AK Azad at a pre-budget discussion, held on May 15, said the PSI system must be in place until the Customs Department attains the required capacity to replace PSI. The FBCCI chief also demanded conducting of an assessment and a review on a government's decision that withdrew PSI on about 3,000 items in 2010. Besides, Bangladesh Motor Parts Manufacturers and Exporters Association, Bangladesh Mobile Operators Association and Bangladesh Refrigerators Manufacturers Association in their respective budget proposal for 2011-2012 fiscal demanded PSI continuation. The associations in the proposals stated the malpractices like wrong declaration and under-valuation have increased alarmingly with the abolition of PSI on their items in 2010 resulted in uneven competition in the local market. The Internal Resources Division of the finance ministry in its proposal to the Cabinet Division suggested to appoint SGS Societe Generale de Surveillance SA, Bureau Veritas International SA, OMIC Overseas Merchandise Inspection Co Ltd. and Intertek International Ltd. in five blocks with SGS getting two blocks. A five-member committee of the government selected the firms based on their experiences and offer rates. The proposed PSI companies are now working in the country with tenure of their contract finishing in June this year. Earlier, the finance minister approved the report of the government committee before placing the same in the Cabinet Division for approval. Blocks A and C have been proposed to be awarded to SGS Societe Generale de Surveillance SA. However, during the previous term the company had got blocks A and C. In the new term, its commission has been proposed to be lowered. In Block A, it will get 0.100 per cent commission on CIF (cost, insurance, freight) value, while the rate in the previous term was 0.320 per cent. For Block C, it will get a commission of 0.154 per cent, while the earlier rate was 0.340 per cent. Block C has been proposed for Bureau Veritas International SA. The rate of commission will be 0.275 per cent, while the earlier rate was 0.348 per cent. Block D has been proposed for OMIC Overseas Merchandise Inspection Co Ltd. with a commission of 0.350 per cent, while its earlier commission was 0.400 per cent. Block E has been proposed to award to Intertek International Ltd. with a commission of 0.550 per cent. The earlier rate of commission was the same.