Taskforce recommends continuation of PSI
Sunday, 7 June 2009
The taskforce that was constituted to figure out the future of the pre-shipment inspection (PSI) system, suggested continuation of it until building of the capacity of customs department, reports UNB.
Director general of customs intelligence and investigation directorate Abdul Mannan Sikdar was the convener of the six-member taskforce, which submitted its report to the National Board of Revenue (NBR) Thursday.
Representatives from business community in the taskforce included Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) first vice-president Abul Kashem Ahmed and adviser Monjur Ahmed.
"If the PSI scheme is scrapped without building the capacity of the customs department, serious consequences might be evident, which may affect both revenue administration and import-export activities negatively," the report said.
The taskforce, comprising of public-private representatives, recommended to the government a number of short, medium and long-term strategies, and suggested continuing the PSI scheme until the recommendations are implemented.
The mandatory PSI system has been in place in the country from February 2000 at the insistence of business community. The current contract of four appointed PSI companies will expire on December 31, 2009.
The successive governments after 2000 so far cancelled contracts with two PSI agents, Inspectorate Grifith in December 2004 and Cotecna in March 2008, for irregularities.
The major responsibilities of the PSI companies included issuing valuation certificates of imported items, ensuring their quality, doing pre-shipment inspection, and classifying goods so that duties at import level are imposed by the customs officials accordingly.
At present ITS (UK), SGS (Switzerland), Bureau Veritas (France) and OMIC (Japan) are assigned for PSI activities in five blocks.
The taskforce in its report said the business community viewed that the PSI system has been contributing to facilitate trade in the country, but failed to improve the capacity of customs department.
"PSI services are supposed to be used only for as long and in so far as it is necessary to develop the capacity of the customs authorities gradually to administer to the WTO agreement on customs valuation," the report said, quoting the position of business community on PSI.
"Bangladesh customs is far from achieving the objective, and it is imperative that the present distorted PSI regime is replaced by an appropriate PSI system to expedite the transition of Bangladesh customs into an efficient and credible administration and trade facilitation agency."
The taskforce report said the overall performance of the PSI agencies from the beginning until date is not up to the mark.
The report in its short-term recommendations said the customs department has to develop valuation database, obtain membership of the World Customs Organisation Nomenclature to get commodity database, install scanners at all ports, fill up all vacant posts in customs department, impart customs officials with adequate training on valuation, and establish high-speed internet connectivity.
Director general of customs intelligence and investigation directorate Abdul Mannan Sikdar was the convener of the six-member taskforce, which submitted its report to the National Board of Revenue (NBR) Thursday.
Representatives from business community in the taskforce included Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) first vice-president Abul Kashem Ahmed and adviser Monjur Ahmed.
"If the PSI scheme is scrapped without building the capacity of the customs department, serious consequences might be evident, which may affect both revenue administration and import-export activities negatively," the report said.
The taskforce, comprising of public-private representatives, recommended to the government a number of short, medium and long-term strategies, and suggested continuing the PSI scheme until the recommendations are implemented.
The mandatory PSI system has been in place in the country from February 2000 at the insistence of business community. The current contract of four appointed PSI companies will expire on December 31, 2009.
The successive governments after 2000 so far cancelled contracts with two PSI agents, Inspectorate Grifith in December 2004 and Cotecna in March 2008, for irregularities.
The major responsibilities of the PSI companies included issuing valuation certificates of imported items, ensuring their quality, doing pre-shipment inspection, and classifying goods so that duties at import level are imposed by the customs officials accordingly.
At present ITS (UK), SGS (Switzerland), Bureau Veritas (France) and OMIC (Japan) are assigned for PSI activities in five blocks.
The taskforce in its report said the business community viewed that the PSI system has been contributing to facilitate trade in the country, but failed to improve the capacity of customs department.
"PSI services are supposed to be used only for as long and in so far as it is necessary to develop the capacity of the customs authorities gradually to administer to the WTO agreement on customs valuation," the report said, quoting the position of business community on PSI.
"Bangladesh customs is far from achieving the objective, and it is imperative that the present distorted PSI regime is replaced by an appropriate PSI system to expedite the transition of Bangladesh customs into an efficient and credible administration and trade facilitation agency."
The taskforce report said the overall performance of the PSI agencies from the beginning until date is not up to the mark.
The report in its short-term recommendations said the customs department has to develop valuation database, obtain membership of the World Customs Organisation Nomenclature to get commodity database, install scanners at all ports, fill up all vacant posts in customs department, impart customs officials with adequate training on valuation, and establish high-speed internet connectivity.