The National Board of Revenue (NBR) recently allowed a private company Ispahani Summit Alliance Terminals Ltd (ISATL) to set up a quality control centre in a bid to ensure export of quality apparel products. The customs wing of the NBR last month allowed the company to set up a special bonded warehouse and permitted it to establish a quality control centre for examining exportable apparel products. The company will offer ‘pick and pack’ service and work as an agent of foreign buyers. Officials said foreign buyers will pay the charges and fees against the services provided by the quality control company. They said the customs wing has been awarding licences to the private quality control centres since 1998. Apart from the ISATL, there are some 20 such companies in the country. “The NBR approved the first quality control company Koheni Negali in 1998. The board has followed similar rules, under the Customs Act, on appointment of other companies including ISATL,” said a senior customs official. He said the companies applied to the NBR for licences with the recommendations of top three or four foreign buyers to examine quality of export products before shipment. Local exporters are required to go through the private quality control centre if foreign buyers want, he added. Meanwhile, the country’s apparel exporters have raised objection to the establishment of the ISATL claiming that the permission was granted to the company without discussions with the apex exporters’ associations. The NBR has always discussed with the relevant trade bodies prior to such appointment, they claimed. In a recent letter, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) demanded of the NBR to withdraw permission to ISATL for the ‘sake of export trade.’ Asked on the allegation, the customs official said there is no binding in the customs law on discussing with the exporters before awarding licences to the private quality organisations. The Customs wing has appointed the company ISATL in accordance with the same rules that have been in vogue since 1998. Officials said they could not guess that there would be such opposition on the issue. On quality control issue, the government cannot discourage foreign buyers if they want to appoint their representatives to examine and certify the quality of export products, the official said. They said buyers sometimes remain shaky to send foreign quality control experts due to political turmoil considering security reason. Apparel exporters, however, fear there would be hidden costs that buyers would pass on to the exporters. They also claimed that the lead time of export will be reduced and cost of export products would go up following the latest decision. Currently, quality control representatives of foreign buyers check quality of products inside factories and hand those over for shipments after packing. In the letter to the NBR, the apparel exporters said disputes may arise with the foreign buyers over the issue of private quality control centre and affect the export trade. Talking to the FE, BGMEA president Md Atiqul Islam said the NBR didn’t discuss the issue prior to appointment of the company. “We are not clear what would be the mode of operation and activity of the company. Currently, third party inspection is being conducted by the buyers,” he said. A senior customs official said the entire issue of private quality control mechanism for export of apparels may be reviewed soon to make it more exporter-friendly. He said the issue would be placed to the government high-ups for further discussion.
Source: https://www.thefinancialexpress-bd.com/2015/05/04/91292
