All imports of edible oil will, henceforth, be subject to tests for standards and issuance of Conformity Assessment Report (CAR) by Pakistan Standards and Quality Control Authority (PSQCA) before marketing of the product for sale.
Following the objection raised by PSQCA that Provincial Health Departments (PHDs) have neither capacity nor legal mandate to undertake this kind of responsibility, Collector of Customs, Model Customs Collectorate Preventive (MCCP), Karachi, has informed Member, Customs, Federal Board of Revenue (FBR), that it has "decided to dispense with referring the cases to PHDs".
Now onwards the data of all imports of edible oils shall be communicated to PSQCA, on weekly basis, so that they could keep watch on the imports at refining/processing and packaging stages for standard and quality check. The chemical analysis of these products, at import stage shall, however, continue to be done by the Customs House laboratory, as usual.
The Collector, in his letter, written on October 17, stated that in the year 2001-02 various parties imported a large number of consignments of RBD palm oil. On test, the same were found to be "not fit for human consumption". However, it was reported by the laboratory that the imported product could be made fit for human consumption after undergoing refinement process. The Collectorate confiscated all those consignments imported in contravention of Import Policy Order wherein imports of edible products, not fit for human consumption, were banned.
The importers then preferred appeals against these orders before the Appellate Tribunal (Customs, Excise and Sales Tax), Karachi bench, which dismissed all appeals. The aggrieved parties then filed special customs appeals before the High Court of Sindh, which while allowing the appeals laid down certain parameters for release of the imported consignments, besides ruling that:
"RBD palm oil imported by the appellants being capable of human consumption after undergoing refining process does not fall within Clause H-I of the negative list of the Import, Trade and Procedure Order 2001-2002."
The Collectorate then filed civil petitions before the Supreme Court of Pakistan against the aforesaid judgement of the High Court of Sindh. The Supreme Court of Pakistan, while disposing of the petitions for Leave to Appeal, upheld the judgement order passed by High Court of Sindh.
Since then the Model Customs Collectorate Preventive, as well as Collectorate of Customs, Port Qasim, have been releasing similar consignments as per parameters/guidelines set out in the judgements of High Court of Sindh and Supreme Court of Pakistan.
On October 8, PSQCA informed the Collectorate that as per PSQCA Act 1996, only it is authorised to test items for standards and issuance of CAR. PSQCA expressed its view that reference to PHDs as mentioned in High Court and Supreme Court judgements would defeat the spirit of law and complicate the issue. Keeping in view the reference received from PSQCA and legal position taken by it, MCCP has stopped referring the cases to PHDs.
Abdul Ghaffar Soomro, Director-General, PSQCA, had also in a letter sent on October 9, requested FBR Chairman for an early action in pursuance of the provision of Import Policy, and necessary notification/SRO to lay down appropriate procedure so that before the release all consignments are referred by the Customs authorities to PSQCA, being the competent authority for conformity assessment under PSQCA Act, 1966.
FBR Chairman''s attention has also been drawn to the minutes of the meeting presided over by the Deputy Chairman, Planning Commission, where the matter of unlicensed and manufacture/sale of potentially harmful cooking oil/ghee in the market was deliberated upon at length and following decisions were taken: No one will be allowed to produce, package or sell food items without PSQCA approval. Non-manufacturers will not be allowed to import food grade palm oil, and PSQCA will be given powers to seal premises of non-compliant manufacturers.
These decisions were reflected in the Trade Policy in these words: "Only recognised manufacturers would be allowed to import crude palm oil for further processing and refining. However, commercial importers, who have invested in large bulk storages, will be allowed to continue importing crude palm oil, subject to a safeguard mechanism to be drawn up by FBR."
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