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'PSI to continue despite flaws, ill practices’

BDNEWS, Dhaka
Despite having flaws and fraudulent practices, the provision of preshipment inspection (PSI) will not be withdrawn in the upcoming budget, said an official of the National Board of Revenue (NBR) yesterday.
"The forthcoming budget will not curtail the provision of PSI although PSI companies provide faulty certificates and are engaged in corruption in some cases," said the official.
Responding to a query of the news agency on the recent Mercedes-Benz import scam, he said they have found that PSI companies do not verify the imported goods properly.
"A large portion of their PSI certificates are faulty and found providing misinformation on product price, quantity," said
Sheikh Mohammad Farid, vice-president of Dhaka Customs Agents Association adding," No company detailed the quality of the imported goods in their certificates.”
Citing the agency British Standard Institute (BSI) that certified the importofMercedes-Benzas scrap, he said some 33 percent of PSI certificates were found faulty in2003.
The authorities cancelled the license of BSI that authorised the local importer Steel Trading Company Ltd to import the vehicle.
The importer Steel TYading also provided fake address and the clearing and forwarding agent Mitali also did not verify the address.
Currently, three authorised agencies - Bureau Veritas (BIVAC), ITS (Intertek Testing Services) and SGS Bangladesh - are operating in Bangladesh.
These firms are entitled to verify
price, quantity, and quality of the imported goods. Besides, the verification of customs value, the accuracy of the tariff codes classification and the calculation of the corresponding duties and taxes payable are included in their duties.
The NBR chairman in a viewsexchange meeting on April 20 with Chittagong Chamber of Commerce and Industry (CCCI) said the government is planning to withdraw the provision of PSI, .to ensure transparency in revenue collection as well as stop all kinds of harassment in the country's exportimport trade.
PSI, a World TYade Organisation valuation system, is used now in thirty countries of the world, including Bangladesh. It was made mandatory for all importable goods in Bangladesh from 15 February2000.