Technical barriers to trade under WTO: customs clearance should not be allowed without PSQCA report

17 Jul, 2008

Customs clearance may not be allowed to importers without production of 'Conformity Assessment Report' (CAR) from Pakistan Standards and Quality Control Authority (PSQCA). The Federal Board of Revenue (FBR) has, in this regard, directed all Collectors of Customs for immediate action and compliance in implementing the provisions of import policy order viz-a-viz Technical Barriers to Trade (TBT) under WTO.
Pakistan Standards and Quality Control Authority (PSQCA) had desired that customs clearance should not be allowed without prior receipt of CAR, issued by PSQCA. Second Secretary (Customs Budget), FBR, in a letter sent to all Collectors of Customs, The Project Director, Customs Administrative Reforms (CARE), Customs House, Karachi, and Director, Automation Pakistan Revenue Automation Limited (PRAL), Customs House, Karachi, has desired that PSQCA's guidelines should be followed, strictly, in this regard.
Director-General, PSQCA, Abdul Ghaffar Soomro, had brought to the notice of Member (Customs), FBR, Mahmood Alam, that under the agreement on TBT member countries have right to enforce technical regulations on products imported from the territory of other member countries on equal footings as of national products. In line with this right, the Import Policy Order contains the following provision: "Import of goods shall be subject to the same national quality standards or regulations as are prescribed in respect of similar and domestically produced goods."
The DG, PSQCA had also highlighted that as requirement of TBT, PSQCA is statutory organisation to act as National Standardising Body and has powers and functions as envisaged under section 8 through 14 to PSQCA Act, 1996 in this regard.
Further, PSQCA has also been declared National Enquiry Point (NEP) as required under TBT/WTO to function as focal point for dissemination/providing information regarding standards, whether local or international to interested persons.
The Federal government had notified 49 items requiring meeting standards as prescribed by the Authority on compulsory basis. Resultantly, at import stage these items, before clearance, are required to get CAR from the Authority as per PSQCA Act.
Initially, the enforcement of these statutory provisions at import stage were non-existent. However, when the matter was brought to the notice of Member, Customs, FBR, instructions were issued for implementation of the above legal provisions.
This step of the FBR yielded results as customs authorities have started referring goods for CAR. Nonetheless, the information available suggests that all the compulsory items are not being referred to the Authority as markets are full of products like aerated waters, biscuits and other items/products which have not been issued certificate for CAR by PSQCA. Therefore, Pakistan is not exercising its legal rights as available under TBT to stop inflow of substandard/harmful products, into the country.
In this backdrop, PSQCA had solicited issuance of necessary instructions to all field officers to ensure implementation of legal provisions under PSQCA Act, 1996 and Import Policy Order. A list of all compulsory items showing PCT headings had also been enclosed against which customs clearance was not to be allowed without prior receipt of CAR, issued by PSQCA.
PSQCA Director-General had emphasised that it was imperative that the PCT headings are uploaded in the system of PACCS as well as One Customs/PRAL to trigger alert for seeking CAR from the Authority. The list of items notified as compulsory for conformity assessment under PSQCA Act, 1996 is as follows:
Soyan bean oil, palm oil, refined sunflower oil, cottonseed oil, coconut oil, mustard oil, refined maizi (coprn oil), seasame oil, animal/vegetable fats, margarine, sweet biscuits, wafers, other biscuits, mineral water (natural or artificial) aerated water, oil cake of cottonseed oil, preparation for complete feeds, salt, cement, PVC pipes, polypropylene bags, articles of asbestos, mild steel bars, steel reformed bars, deformed bars, stoves for liquid fuel, razor, safety razor blades, internal combustion engines for land, rail-tarction and marine use, excluding engines used to propel road construction and earth moving machines, agricultural and industrial types of tractors, automobiles and trucks and aero-engines, induction motor above 0.75 KVA, lead acid batteries for motor car and motor cycle, tungeston lamps, fluorescent lamps, two three wheelers auto vehicles, ballast for discharge lamps/tubes, and electrical measuring devices.

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