Showing serious concerns over the fresh decision of Ministry of Commerce to take the control of Quality Review Committee (QRC) into its hand the memebrs of Rice Exporters Association of Pakistan (REAP) have said that the fresh move would promote corruption and mismanagement in the committee besides creating immense problems to them
The Ministry of Commerce (MOC) vide a notification bearing number 4(10)/05-E superseded public notice dated March 3,1999 and taken fiscal and other control of the QRC and placed it under the control of Director General (DG) Trade Development Authority of Pakistan (TDAP) as its chairman.
However on the other hand the small exporters who had concerns about the earleir status of QRC under REAP, have welcomed the move while demanding that the ministry and TDAP should also ensure complete recovery of proceeds and correct transfer of accounts of QRC with inspection fees collected since 1999, correct expenditure figures and tax liabilities from the REAP before issuing clearance certificate to them. Sources in REAP claimed saidthat the QRC under the ministry would provide oppertunities to the vested intererst group in ministry and TDAP to demand kick backs and bribes for getting the quality certificates. Besides the geniun exporters would also face delays in trade actvities due to the hectic and lenghty documentation and filing system in government offices. It was the REAP which has pushed the country’s exports from $ 400 million to over $ 2 billion since the association was controlling the QRC. Being private organization, the association was strictly monitoring the quality issue of rice for exports. The counter parts of the organization were also praising the role of REAP for maintaining standards and quality of the country’s rice, they claimed. However on the other hand the Union of Small and Medium Enterprises (UNISAME), in a statement has invited the attention of Tariq Iqbal Puri, Chief Executive Officer (CEO) Trade Development Authority of Pakistan (TDAP) to ensure complete recovery of proceeds and correct transfer of accounts of QRC. According to President NISAME it is very important to reconcile the accounts of the QRC from 1999 onwards till date and secure the documents of property purchased with QRC funds before relieving the former management and invited the attention of the Auditor General of Pakistan to have the accounts checked.
“Basically the collection of inspection fees by a body not qualified to inspect the rice consignments shipped to global destinations nor collect fees in this manner is beyond comprehension and in fact a mockery of the system of inspection, nevertheless due to patronage of the successive governments and the obstinacy of the ministers who were misguided by the big exporters who wanted to control the rice business they let the body exist despite court rulings and strong objections from Pakistan Standard Quality Control Authority (PSQCA)” it said. The Sindh High Court (SHC) had declared that no exporter will be compelled to become member of REAP but despite the order of the SHC no exporter can export rice without being a member of REAP which is truly contempt of court. It is pertinent to note that no body can carry out pre-shipment inspection (PSI) of cargo without permission from PSQCA who issues the license on the basis of qualification compliance and the most important point is the fact that pre-shipment inspection (PSI) is always carried out by a third party and never by the parties involved. UNISAME strongly objects to PSI by QRC and urges the MOC to discontinue the practice of PSI by QRC immediately. The MOC has reconstituted the composition of the QRC and the notification states the composition and scope but it is again based on defective perceptions as the body cannot comprise of anybody who is an exporter himself as it gives rise to conflict of interest. The big exporters get their cargo inspected very easily but the SME rice exporters have to undergo the ordeal and their shipments are being delayed due to this exercise, the QRC will again play into the hands of the big boys as no SME representative is on the body. The question is how can the PSQCA allows the QRC to function and how the MOC is promoting the PSI by a body which is unconstitutional in its character and the global buyers are making fun of the system by stating that this is self inspection by the shippers themselves.
It said now that the notification has been issued for the transfer of funds to TDAP and onward inspection fees to be collected by TDAP. It is desired that TDAP should waive the inspection fees,( if it wishes to continue with this so called PSI) as it is already recovering export development surcharge at the rate of quarter percent from every exporter and not offering anything in return. Under such circumstances it simply cannot be given the responsibility of managing the QRC which undertakes PSI of Basmati rice exports. The small and medium sized rice exporters have taken serious exception to PSI conducted by QRC, managed by Reap, and have decided to take up the matter with the Ministry of Commerce (MOC), Export Promotion Bureau (EPB), Trading Corporation of Pakistan (TCP) and Ministry of Food, Agriculture and Livestock (Minfal). The Ministry of Commerce, the stament further said, has almost realised the fact that PSI of Basmati rice conducted by QRC was unfair, unjust, and was giving rise to conflict of interest, and has sent a reference to EPB before dissolving the committee managed by REAP. The SME rice exporters are eagerly awaiting the final action of dissolution of the troublesome committee and have appealed to the policy makers to act fast in the best interests of rice exporters.
