Trade bodies hold opposing views on PSI continuation
Saturday, 15 March 2008
S M Jahangir
A number of leading trade bodies of the country, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), favour continuation of pre-shipment inspection (PSI) system while some others are opposed to it.
The trade bodies have recently sent their individual opinion on the issue of PSI to the National Board of Revenue (NBR) which wanted to know from them whether or not the government should have such system in place.
Four leading business chambers, including the country's apex trade body, gave their opinions separately in favour of continuation of the PSI system while four others recommended withdrawal of the existing PSI provision, official sources said.
Besides, most of the customs commissionerates under the NBR, which were also asked to give their opinion, are against the continuation of such PSI system after the operating contracts with four existing PSI companies expire August 31, 2008, official sources said.
The trade bodies that favoured the PSI system are: the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the Foreign Investors Chamber of Commerce and Industry (FICCI, the Metropolitan Chamber of Commerce and Industry (MCCI) and the Barisal Chamber of Commerce and Industry (BCCI), they mentioned.
Giving their opinions in favour of PSI system, many of them, however, suggested some changes in the existing PSI arrangements, said an NBR official.
The trade bodies gave their suggestions in favour of assigning more than one PSI companies for a particular 'block'.
On the other hand, the Chittagong Chamber of Commerce and Industry (CCCI), the Dhaka Chamber of Commerce and Industry (DCCI), the Rajshahi Chamber of Commerce and Industry (RCCI) and the Sylhet Chamber of Commerce and Industry (SCCI) want discontinuation of the PSI system.
They also pointed out a set of reasons for justifying the discontinuation of the PSI arrangement.
Among the reasons, the business chambers mentioned that importers had to face immense problems and financial losses while getting customs clearance because of an inordinate delay in the availability of PSI-attested clean report of finding (CRF).
Sometimes, lapses in information are found in the attested CRF, which make the customs clearance procedures more complicated for importers, they noted.
They also said the shipment of imported goods is delayed due to absence of PSI companies' offices and their required manpower in major cities of exporting countries.
Since one PSI company is engaged for a block under the existing provision, it arbitrarily certifies both prices and HS codes of imported goods, causing financial losses to importers, they said.
Apart from these, some dishonest PSI officials, sometimes, get involved in under-invoicing and under-valuation of imported goods through using improper HS codes, depriving the government of huge revenue, they added.
The NBR's current move to decide on continuation of the services of the PSI companies has been initiated after it found gross irregularities in the inspection and certification processes of imported goods by some particular companies.
In August 2005, the government appointed four PSI companies - Cotecna Inspection SA, SGS (Bangladesh) Limited, Bureau Veritas BIVAC (Bangladesh) Limited and Intertek Testing Limited - for three years for certifying price, quality and quantity of imported goods.
A number of leading trade bodies of the country, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), favour continuation of pre-shipment inspection (PSI) system while some others are opposed to it.
The trade bodies have recently sent their individual opinion on the issue of PSI to the National Board of Revenue (NBR) which wanted to know from them whether or not the government should have such system in place.
Four leading business chambers, including the country's apex trade body, gave their opinions separately in favour of continuation of the PSI system while four others recommended withdrawal of the existing PSI provision, official sources said.
Besides, most of the customs commissionerates under the NBR, which were also asked to give their opinion, are against the continuation of such PSI system after the operating contracts with four existing PSI companies expire August 31, 2008, official sources said.
The trade bodies that favoured the PSI system are: the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the Foreign Investors Chamber of Commerce and Industry (FICCI, the Metropolitan Chamber of Commerce and Industry (MCCI) and the Barisal Chamber of Commerce and Industry (BCCI), they mentioned.
Giving their opinions in favour of PSI system, many of them, however, suggested some changes in the existing PSI arrangements, said an NBR official.
The trade bodies gave their suggestions in favour of assigning more than one PSI companies for a particular 'block'.
On the other hand, the Chittagong Chamber of Commerce and Industry (CCCI), the Dhaka Chamber of Commerce and Industry (DCCI), the Rajshahi Chamber of Commerce and Industry (RCCI) and the Sylhet Chamber of Commerce and Industry (SCCI) want discontinuation of the PSI system.
They also pointed out a set of reasons for justifying the discontinuation of the PSI arrangement.
Among the reasons, the business chambers mentioned that importers had to face immense problems and financial losses while getting customs clearance because of an inordinate delay in the availability of PSI-attested clean report of finding (CRF).
Sometimes, lapses in information are found in the attested CRF, which make the customs clearance procedures more complicated for importers, they noted.
They also said the shipment of imported goods is delayed due to absence of PSI companies' offices and their required manpower in major cities of exporting countries.
Since one PSI company is engaged for a block under the existing provision, it arbitrarily certifies both prices and HS codes of imported goods, causing financial losses to importers, they said.
Apart from these, some dishonest PSI officials, sometimes, get involved in under-invoicing and under-valuation of imported goods through using improper HS codes, depriving the government of huge revenue, they added.
The NBR's current move to decide on continuation of the services of the PSI companies has been initiated after it found gross irregularities in the inspection and certification processes of imported goods by some particular companies.
In August 2005, the government appointed four PSI companies - Cotecna Inspection SA, SGS (Bangladesh) Limited, Bureau Veritas BIVAC (Bangladesh) Limited and Intertek Testing Limited - for three years for certifying price, quality and quantity of imported goods.