Pre-shipment inspection unnecessary for importing scrap metal
Wednesday, 12 March 2008
AS the president of an exporting company at Miami USA, I have tried and asked many members of the steel mills owners association of Bangladesh to request Bangladesh Ministry of Commerce to end PSI (Pre-shipment Inspection) assigned by Government of Bangladesh (GoB) to a PSI company.
As a exporter of scrap metal worldwide, my experience says this kind of inspection delays the process of importing scrap metal, pushing up the costs for the consumers.
The recent jumps in prices in the iron and steel market of Bangladesh had nothing to do with syndication. Souring demand for iron and steel in China, Korea, Vietnam and India increased scrap metal price by $ 100 per ton in last two months. PSI by the company only delays the process.
The inspectors, mostly don't go to site when the container is loaded. We have to request them three days before inspection. Some of them don't even take pictures and depend on local suppliers.
Despite a growing demand for scrap in Bangladesh, none of the suppliers wants to export to Bangladesh. Whenever we ask them they demand an extra $20 per ton only due to the time wasted by PSI. Sometime these inspectors don't show up on time. Most of them are hired on contract by the PSI company.
After inspection, these people take three days to send a report to their head office at Miami, the USA, though they can send their report the same day by e-mail or fax. After we furnish the Commercial Invoice and packing list to Miami office, it takes another five to six days, and at time 10 days as my experience tells.
All these push up the costs for the Bangladesh consumers. What is more important is that suppliers in scrap metal worldwide don't like to export to Bangladesh due to time wasted by inspection. They prefer China, Korea, Vietnam and alike countries as their export markets also require no inspection.
Finally I would request you to publish this letter in your newspaper so that the Ministry of Commerce can realise the problem and drop the requirement of inspection for importing scrap metal. If an exporter violates the policy for import of scrap metals, the government can ban that exporter in Bangladesh.
Mohammad Faruk
NAFF USA INC, 20655 SW
93rd Ave Miami,
USA
As a exporter of scrap metal worldwide, my experience says this kind of inspection delays the process of importing scrap metal, pushing up the costs for the consumers.
The recent jumps in prices in the iron and steel market of Bangladesh had nothing to do with syndication. Souring demand for iron and steel in China, Korea, Vietnam and India increased scrap metal price by $ 100 per ton in last two months. PSI by the company only delays the process.
The inspectors, mostly don't go to site when the container is loaded. We have to request them three days before inspection. Some of them don't even take pictures and depend on local suppliers.
Despite a growing demand for scrap in Bangladesh, none of the suppliers wants to export to Bangladesh. Whenever we ask them they demand an extra $20 per ton only due to the time wasted by PSI. Sometime these inspectors don't show up on time. Most of them are hired on contract by the PSI company.
After inspection, these people take three days to send a report to their head office at Miami, the USA, though they can send their report the same day by e-mail or fax. After we furnish the Commercial Invoice and packing list to Miami office, it takes another five to six days, and at time 10 days as my experience tells.
All these push up the costs for the Bangladesh consumers. What is more important is that suppliers in scrap metal worldwide don't like to export to Bangladesh due to time wasted by inspection. They prefer China, Korea, Vietnam and alike countries as their export markets also require no inspection.
Finally I would request you to publish this letter in your newspaper so that the Ministry of Commerce can realise the problem and drop the requirement of inspection for importing scrap metal. If an exporter violates the policy for import of scrap metals, the government can ban that exporter in Bangladesh.
Mohammad Faruk
NAFF USA INC, 20655 SW
93rd Ave Miami,
USA