Fresh tenders for PSI firms in the offing
Tuesday, 13 July 2010
FE Report
The government is set to float fresh tenders for appointing pre-shipment inspection (PSI) companies as the contract for existing four companies will expire in December next.
The National Board of Revenue (NBR) would invite expression of interest (EoI) for appointing new PSI companies in a short time, said an official.
The revenue board has sent a proposal to the finance minister seeking his approval for fresh tenders, he added.The tenure of the existing PSI companies will not be extended further. They have to compete with other PSI companies for getting appointed for 2011.
The government has decided to continue the PSI system until 2011, although it was scheduled to be expired in December 2010.
In the budget for the current fiscal, the government has cut around 2500 items from the list of mandatory PSI in a bid to phase out the system gradually.
After cutting down the items, the country's apex chamber has requested the government not to drop the products from the PSI list fearing that the change will affect local industries and revenue earning.
The chamber has said the cut will raise under-valuation of imported products as the customs department is yet to build its capacity to handle all imported goods.
At present ITS of Britain, SGS of Switzerland, Bureau Veritas of France and OMIC of Japan are doing the PSI job.
Major responsibilities of the PSI companies include issuing valuation certificates of imported items, doing pre-shipment inspection and classifying goods so that customs officials can fix duties based on the goods' original prices.
The government has cancelled contracts with two PSI agents --- Inspectorate Grifith in December 2004 and Cotecna in March 2008 --- after the companies were accused of financial irregularities.
The government is set to float fresh tenders for appointing pre-shipment inspection (PSI) companies as the contract for existing four companies will expire in December next.
The National Board of Revenue (NBR) would invite expression of interest (EoI) for appointing new PSI companies in a short time, said an official.
The revenue board has sent a proposal to the finance minister seeking his approval for fresh tenders, he added.The tenure of the existing PSI companies will not be extended further. They have to compete with other PSI companies for getting appointed for 2011.
The government has decided to continue the PSI system until 2011, although it was scheduled to be expired in December 2010.
In the budget for the current fiscal, the government has cut around 2500 items from the list of mandatory PSI in a bid to phase out the system gradually.
After cutting down the items, the country's apex chamber has requested the government not to drop the products from the PSI list fearing that the change will affect local industries and revenue earning.
The chamber has said the cut will raise under-valuation of imported products as the customs department is yet to build its capacity to handle all imported goods.
At present ITS of Britain, SGS of Switzerland, Bureau Veritas of France and OMIC of Japan are doing the PSI job.
Major responsibilities of the PSI companies include issuing valuation certificates of imported items, doing pre-shipment inspection and classifying goods so that customs officials can fix duties based on the goods' original prices.
The government has cancelled contracts with two PSI agents --- Inspectorate Grifith in December 2004 and Cotecna in March 2008 --- after the companies were accused of financial irregularities.