Govt may consider PSI certification, instead of BSTI approval
Doulot Akter Mala | Friday, 25 July 2008
The government might consider the certification of pre-shipment inspection (PSI) as a quality testing report instead of an approval of Bangladesh Testing Institution (BSTI) to expedite release of products from Chittagong port.
The PSI companies are entitled to issue clean report of finding (CRF) certificates of imported products after conducting three major tests-- value, quantity and quality of products.
The issue was discussed in a recent meeting in the Chittagong port with the National Board of Revenue (NBR) chairman Muhammad Abdul Mazid.
Brigadier General Hassan Nasir and BSTI director M. Liakat Ali also attended the meeting.
In the meeting, Brig. Nasir opined that CRF could be considered as standard testing certificates instead of BSTI certificates to avoid unusual delay in obtaining quality-testing reports.
His comments came after a report that obtaining BSTI certificates is one of the main causes for delay in clearing procedures of imported products.
In the meeting, BSTI director said: "The PSI companies will have to issue CRF following import policy and the standard criteria of Bangladesh, which will be considered as a substitute for BSTI certificate."
Once the decision is implemented, the BSTI will only collect sample of those imported products to test in its own laboratory as a part of its routine work, officials said.
The state-owned standard testing institution will not create any obstacle in unloading of products from port, they added.
Officials said the importers will have to pay a 'marking fee' to the government as per declaration on the volume of imported products.
The BSTI director said the PSI companies should follow the WTO agreement on pre-shipment inspection before issuance of CRF.
The BSTI certificates are imperative for some products that are closely relevant with the public health, but for some products it will be duplication of quality testing report of CRF, said NBR chairman Muhammad Abdul Mazid.
Responding to a question about finalisation of the decision, the NBR chairman said: "The discussion was not conclusive on allowing the CRF as final quality testing report instead of BSTI certificate."
The government will have to study the matter whether or not the PSI certification covers the entire chemical tests like BSTI, he said.
"We will take all possible measures to expedite the unloading of products from Chittagong port," he said.
Unloading of imported products will not be delayed for testing quality standard if the PSI agencies properly follow the related clauses of WTO agreement, an official said.
If it is found that the PSI agencies are not issuing CRF certificate as per the country's quality standard, the traditional system of obtaining BSTI certificate will be valid after sample test, he said.
NBR officials said the government will have to change import policy for giving the new rule an effect.
Talking to the FE, BSTI director Mr. Ali said: "We will have to hold more meetings to settle the issue as discussed in the last meeting at Chittagong."
The importers may have to pay an additional charge to the PSI agencies for quality testing, he said.
The government has made it mandatory for importers to take CRF certificates from the PSI companies.
The importers should take CRF certificates for all commodities excepting perishable items, zero-rated goods, government imports, donor grant commodities, relief materials.
As per the existing rules, all importers have to pay a PSI fee for imported consignments as service charge. The amount is 1.0 per cent of the total value of the imported products.
The PSI companies are entitled to issue clean report of finding (CRF) certificates of imported products after conducting three major tests-- value, quantity and quality of products.
The issue was discussed in a recent meeting in the Chittagong port with the National Board of Revenue (NBR) chairman Muhammad Abdul Mazid.
Brigadier General Hassan Nasir and BSTI director M. Liakat Ali also attended the meeting.
In the meeting, Brig. Nasir opined that CRF could be considered as standard testing certificates instead of BSTI certificates to avoid unusual delay in obtaining quality-testing reports.
His comments came after a report that obtaining BSTI certificates is one of the main causes for delay in clearing procedures of imported products.
In the meeting, BSTI director said: "The PSI companies will have to issue CRF following import policy and the standard criteria of Bangladesh, which will be considered as a substitute for BSTI certificate."
Once the decision is implemented, the BSTI will only collect sample of those imported products to test in its own laboratory as a part of its routine work, officials said.
The state-owned standard testing institution will not create any obstacle in unloading of products from port, they added.
Officials said the importers will have to pay a 'marking fee' to the government as per declaration on the volume of imported products.
The BSTI director said the PSI companies should follow the WTO agreement on pre-shipment inspection before issuance of CRF.
The BSTI certificates are imperative for some products that are closely relevant with the public health, but for some products it will be duplication of quality testing report of CRF, said NBR chairman Muhammad Abdul Mazid.
Responding to a question about finalisation of the decision, the NBR chairman said: "The discussion was not conclusive on allowing the CRF as final quality testing report instead of BSTI certificate."
The government will have to study the matter whether or not the PSI certification covers the entire chemical tests like BSTI, he said.
"We will take all possible measures to expedite the unloading of products from Chittagong port," he said.
Unloading of imported products will not be delayed for testing quality standard if the PSI agencies properly follow the related clauses of WTO agreement, an official said.
If it is found that the PSI agencies are not issuing CRF certificate as per the country's quality standard, the traditional system of obtaining BSTI certificate will be valid after sample test, he said.
NBR officials said the government will have to change import policy for giving the new rule an effect.
Talking to the FE, BSTI director Mr. Ali said: "We will have to hold more meetings to settle the issue as discussed in the last meeting at Chittagong."
The importers may have to pay an additional charge to the PSI agencies for quality testing, he said.
The government has made it mandatory for importers to take CRF certificates from the PSI companies.
The importers should take CRF certificates for all commodities excepting perishable items, zero-rated goods, government imports, donor grant commodities, relief materials.
As per the existing rules, all importers have to pay a PSI fee for imported consignments as service charge. The amount is 1.0 per cent of the total value of the imported products.