Germany acts tough as fake GSP papers found

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Germany, one of the largest destinations for Bangladeshi garments, has imposed a 12 percent deposit on suspect imports due to fears over the widespread abuse of certificates that allows Bangladeshi products duty-free access.

Earlier this year a Bangladesh government investigation confirmed that several Chinese and Indian companies had been exporting products to European countries using fake Bangladesh GSP (generalised system of preference) certificates.

To counter this fraud German Customs imposed the 12 percent security deposit from August on consignments they suspect to have fraudulent Bangladeshi GSP certificates.

It has been claimed that the move was taken without any consultation or prior notification, but following the imposition the government decided to launch a diplomatic initiative to resolve the issue.

“We have already written to our Brussels ambassador to resolve the issue with the German government. We think Germany may consider our position. Bangladesh is not liable for any forged GSP certificates,” Feroz Ahmed, secretary, commerce ministry, said.

The ministry is to hold a meeting today to discuss the problem.

In the meantime the Export Promotion Bureau (EPB) yesterday launched a new type of certificate that should be more difficult to forge.

Talking with The Daily Star, EPB Director General Md Khalilur Rahman said German customs imposed the restriction on Bangladeshi exports but German importers know very well who forged the GSP certificates.

“We introduced an EU recommended GSP form –Glluiche Pattern– which is printed in Germany. Some others measures have also been initiated to protect GSP forgery but the German customs’ measure could effect Bangladesh exports in the future,” Khalilur Rahman said.

European Union Trade Adviser in Dhaka Zillul Hye Razi said the imposition of the security deposit was initiated by Germany not the EU.

He said the imposition is not random or routine, but that German customs may use it on suspicious consignments.

Bangladesh Garment Manufactures and Exporters Association (BGMEA) Vice president Ferdous Parves Bivon said as yet no BGMEA member had faced the deposit but the BGMEA is concerned about the issue.

He hoped that Germany would withdraw the restrictive measure soon as the EPB has taken the necessary measures.

Bangladesh Knitwear Manufactures and Exporters Association (BKMEA) Director MA Baset said he did not know of any examples of his members being hit by the security deposit, however he said exporters from third countries may still be trying to use forged GSPs.

Bangladesh exported around $1.5 billion in the last fiscal of which 75 percent came from exporting readymade garments.

In 2006 bilateral trade between Bangladesh and Germany increased by 29 percent, Bangladesh exports to Germany increased by 33 percent and Bangladesh imports from Germany increased by 18 percent.

In the first month of the fiscal 2007-2008 the export were down 21.08 percent on the same period last fiscal. In total for the first two months of the fiscal year exports are down 11.69 percent on a year earlier and 23 percent behind target.

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