Bangladesh News

A government investigation committee has found several Chinese and Indian companies responsible for exporting products to European countries using fake Bangladeshi GSP (generalised system of preference) certificates.

Formed to identify the people involved in GSP forgery, the committee in its primary investigation found that those companies in connivance with some local businessmen and government officials issue fake GSP certificates.

The committee headed by a deputy secretary of commerce ministry was formed following repeated requests from the European Union to send a list of those who have been involved with the forgery and introduce a system to put an end to the malpractice.

“As China and India do not get the generalised system of preference facility in European countries, some companies of the two countries try to export products using fake GSP certificates,” a member of the investigation team said preferring anonymity.

Bangladeshi companies often failed to utilise the whole GSP facilities due to stringent rules of origin system, he said.

Commerce ministry sources said the government is going to take stern action against the officials and businessmen who have helped issuing fake GSP certificates to foreign companies.

The investigation team is supposed to prepare a full list of authorised offices and officials who have been designated to issue GSP certificates.

The team will advise the government to introduce the technology (ASYCUDA++) that is being used by the National Board of Revenue (NBR) for issuance of customs clearance.

The team has prepared a list of complaints made by European Union about the exports using fake GSP certificates.

The team is also considering how the previous governments took action against the officials and companies who had been involved with the forgery.

The EU’s GSP offers lower tariffs or duty-free access for imports from 178 developing countries and territories into the EU market.

In 2002, EU imports worth 53 billion euros were made under GSP.

The European Community first implemented a GSP scheme in 1971.

General guidelines are drawn up for ten-year cycles for implementation of EU’s GSP. Guidelines for the period 2006 – 2015 were adopted in 2004.

For products imported from GSP beneficiary countries, the EU’s GSP grants either duty-free access or a tariff reduction, depending on which of the GSP arrangements a country enjoys.