Rice exporters have urged the government to make the Quality Review Committee (QRC) a quality guidance committee rather than a referee because it is legally not in a position to carry out pre-inspection inspection (PSI) as it is not qualified to carry out PSI of export cargo since it is not complying with the requirements of international PSI companies.
The Ministry of Commerce (MoC) had conceded that QRC was giving rise to conflict of interests and had advised Export Promotion Bureau (EPB) to make QRC independent, impartial and transparent, and EPB endeavoured in that direction. But since the committee is managed by rice exporters themselves, it does not offer level playing field to all exporters.
Inspection fees are always paid by the buyer because pre-shipment inspection is the buyer's requirement and if the buyer chooses to have the cargo inspected, he might as well pay the inspection fees. In the case of QRC the Nawaz government had imposed PSI by QRC as it wanted to favour friends in rice business and enable them to control the rice business. Later governments realised this and the then Federal Secretary Mirza Qamar Baig infact passed orders on the request of SME rice exporters to make QRC independent of Reap.
Even today on paper it is under EPB, but for all practical purposes it is manoeuvered and manipulated by Reap. Rice exporters are determined to take up the issue, and have invited the attention of Federal Commerce Minister Humayun Akhtar to comprehend the matter in its true perspective as how rice exporters can be on the QRC and have access to information on the cargo of their competitors. It is against the norms of justice. Abdul Razzak Dawood, the then Commerce Minister, understood the matter and promised to free the QRC from Reap's control. But he got really busy in other matters and this matter remained unsettled. It is indeed a sorry state of affairs and very unjust and unfair. PSI must be conducted by neutral body and, in fact, there is no need for imposing PSI, said a senior government official. He added that the government believes in liberalisation and de-regulation. So, where does this type of PSI come in? He promised to take up the matter with the Federal Commerce Secretary. The rice exporters are waiting for his perusal.
The rice exporters seem more perturbed over the fact that the pre-shipment inspection (PSI) fee amounts collected by Quality Review Committee (QRC) have been used by the Rice Exporters Association of Pakistan (Reap) to buy properties at Lahore and Karachi, instead of setting up an institute for improvement of the much talked about quality.
The rice exporters who have contributed huge amounts are questioning the wisdom behind decisions to buy property from money derived from quality inspection fees rather than putting the funds to serve quality improvement.
The fact that the properties purchases should have been approved by the Managing Committees, and the transactions should be transparent are also under interrogation by rice exporters. It is believed that proper system was not followed at Lahore and higher price was paid due to lack of experience or otherwise.
Basmati rice is subjected to PSI by QRC managed by Reap. Now Customs are enforcing least interaction under CARE and may request the Ministry of Commerce to do away with the system.
The system is defective in itself on the grounds that PSI is the prerogative of the buyer who always nominates the inspection company of its choice. The buyers have remarked that it is surprising that your own government does not trust you, and have ridiculed the fact that shippers are themselves indirectly carrying out PSI, because QRC is managed by Reap which comprises rice exporters. Some of the buyers insist on PSI by their own agents and this results in double PSI and causes unnecessary expense and time and energy and money but most buyers who have been buying from their old sources are relying on the quality control system of their sellers. The Pakistani rice processors are getting repeat orders and have installed modern machinery and have ISO certification. So, the need for PSI by QRC is not there any more.-PR
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