keynote paper role of accreditation in export promotion

Keynote Paper

Role of Accreditation in Export Promotion

Engr. M. Liaquat AliMember, Bangladesh Accreditation Board

DCCI Auditorium, 16 Feb 1014,

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1 Introduction Objectives

Acquire knowledge about Non-Tariff Barriers (NTB) hindering our export

Understanding Role of Accreditation as a tool to overcome such trade restrictions

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GROSS DOMESTIC PRODUCT(GDP) SHARE

Services 48.9% Industry 26.5% Agriculture 24.6%

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2. INTRODUCTION TO WTO GATT ROUNDS

0

5

10

15

20

25

30

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1947 1962 1972 1987 1995

Av. Tariff %

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2. INTRODUCTION TO WTO STRUCTURE OF WTO

MinisterialConference

General Council Meeting asDispute Settlement Body

General Council General Council Meeting asTrade Policy Review Body

Committees on various issues

Council for Trade in Services

Council fprTRIPS

Council for Trade in Goods

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3. Some Non-Tariff Barriers to International Trade

Quota; Rules of Origin Anti-dumping and Countervailing Duties Sanitary and Phyto-sanitary Measures Technical Barriers to Trade Subsidies; TRIPS

Usually NTBs are imposed through Import Policy of buyer country

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3. INTRODUCTION TO TBT CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS

Article 5: Procedures for Assessment of Conformity

The CA system must give the importing country adequate confidence that products conform with TR. TBT#5.1.2

No delay, the system must work expeditiously. TBT#5.2.1

Inspection points must be conveniently sited. TBT#5.2.6

International Compliance. TBT#5.4

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3. INTRODUCTION TO TBT CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS

Article 6: Recognition of Conformity Assessment

Encourages arrangements for the mutual recognition of member countries conformity assessment procedures

Facilitates acceptance by importing countries CA certificates of exporting countries

Equivalent procedures only where it has confidence

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3. INTRODUCTION TO TBT CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS

Article 9 International and Regional Systems

9.1 Formulate and adopt international systems for CA and become member thereof 9.2 Take measures to ensure compliance of international and regional systems for CA with article 5 and 6 9.3 Rely on compliance of international or regional systems for CA with article 5 and 6

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3. INTRODUCTION TO TBT CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS

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3. INTRODUCTION TO TBT CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS

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4. INTRODUCTION TO SPS

GATT Uruguay Round of Multilateral Trade Negotiations 1994

Recognizing International Standards, guidelines and CA Systems

Encouraging International Standards and CA Systems like CAC, IOE, IPPC

Use of harmonized sanitary and phytosanitary measures Non discrimination Protection and improvement of human, animal or

plant life or health Technical Assistance

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4. INTRODUCTION TO SPS

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5. STANDARDS AND TECHNICAL REGULATIONS TECHNICAL REGULATION

Examples of Technical Regulation:

BSTI Mandatory CM Scheme BIS Mandatory CM Scheme PFA Act of India Pure Food Act of Bangladesh EC Directives National Food Laws National Building Codes National Electricity Regulations Environmental Protection Act Labour Law

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MARKET ACCESS OBSTACLES

WTO Agreements and Rules European Union(EU) Directives United States(US) Trade Rules for Import Japan Trade Requirements Indian Import Requirements FBCCI, DCCI, BAB & EPB should continually

work on finding ways and means to identify these obstacles and recommend stakeholders for removing these

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NON- COMPLIANCE WITH EU-HACCP

EU Health, Hygiene and Environmental Standards

Compliance with Quality Control Rules and Regulations

EU provisions require compliance with a 265 point check list under 22 heads as per HACCP Standards

Veterinary Committee of the EU Requirements

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SOME EXAMPLES OF MRA

Azo and Environmental Labeling Azo dyes harmful to environment German Government listed 79

chemicals and dyestuffs as banned chemicals in the textiles and garments

Environmental Labeling is required in Bangladesh

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SPS MEASURES AS TRADE BARRIERS

AZO DYES In 1996 Germany banned import of textiles and

clothes dyed with azo dyes: Azo dyes can breakdown and release

carcinogens. No alternative dyes are listed.

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EXISTING INDUSTRY SUB-SECTORS HAVING GREATEST POTENTIAL FOR VALUE ADDITION AND EXPORT

Sl. No. Commodities Percentage

1 Knitwear 41

2 Woven Garments 38

3 Frozen Food and Shrimps 3

4 Jute Goods and Raw Jute 3

5 Chemical Products 1.8

6 Leather and Leather Products 1.13

7 Agro and Agro Processed Products -

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Bangladesh and International Trade

Bangladesh is a trading nation. Its economic growth and sustainability depends on International trade.

International trade is influenced by the World Trade Organization (WTO) General Agreement of Tariffs and Trade (GATT), specifically the Technical Barriers to Trade (TBT) provisions of that agreement.

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Bangladesh and International Trade

In short, that agreement specifies that nations should strive to remove the non-technical barriers to trade (whim of a government or a government agency) and work in reducing the technical barriers to trade by implementing methods of objectively identifying them, and providing for systems and facilities to overcome them.

Depend entirely on its exports.

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Bangladesh and International Trade

Bangladesh has been faced with the need to develop a conformity assessment infrastructure to reduce or eliminate the technical barriers to trade as specified in the GATT.

These conformity assessment requirements are technical barriers to trade and the only way to overcome them, is to participate in internationally recognised schemes that recognised in the nations where these requirements exist.

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Bangladesh and International Trade

Either Bengali businesses have their goods and services tested, inspected, and certified within the nations receiving Bengali goods, or they are done in Bangladesh, using approaches that are recognised by these very same importer nations. Failure to use either of these approaches means that Bengali goods and services stay in Bangladesh – there is no export.

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PRODUCT DIVERSIFICATION IN EXPORT

IT Sector; Software Agricultural Processing Products

(high value addition) Ceramics Melamine Bicycles

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MAJOR IMPORTING ECONOMIES

Sl. No Economy Percentage

01 European Union 52.3

02 American Region 33.3

03 Asian Region 8.8

04 Middle East Region 2.5

05 African Region 0.6

06 Oceania Region 0.3

07 East European Region 0.3

08 Others 1.8

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MAJOR COUNTRIES

EU – Germany, UK, France, Italy, Belgium, Netherlands and Spain

US India Canada China

Japan Iran

Singapore Pakistan

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EXPORTS TO INDIA

Bangladeshi exporters are required to comply with the mandatory requirements of India

MRA can be done through Trade Negotiations by the Ministry of Commerce until internationally accepted MRA is established by BAB

India can approve NABL and BAB accredited laboratories and NABCB accredited BSTI

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7. CONFORMITY ASSESSMENT

The usefulness of standards in international trade depends on how far the buyer has the confidence in the manufacturer’s statement that the product meets a particular standard

Manufacturer declares that the product meets the standard

A neutral third party or government to certify that the product meet the specifications of standard

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7. CONFORMITY ASSESSMENT FORMS USED

Testing of products Certification of products and

management systems, Accreditation Multilateral Recognition Arrangements (MRA)

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7. CONFORMITY ASSESSMENT TESTING OF PRODUCTS

Testing services include a broad spectrum of technical activities .

Materials, parts and complete products are tested for physical properties, physical dimensions, electrical characteristics, chemical composition, presence of toxic contaminants and multitude of other features

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7. CONFORMITY ASSESSMENT TESTING OF PRODUCTS

Measurement Traceability National Metrology Laboratory (NML)-BSTI

For Physical standards, signatory to BIPM CIPM MRA National Chemical Laboratory DRiCM-BCSIR,

For Chemical standards, for producing CRM

National Reference Laboratory

For Medical Testing – Yet to be designated by Ministry of Health

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7. CONFORMITY ASSESSMENT TESTING OF PRODUCTS

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7. CONFORMITY ASSESSMENT TESTING OF PRODUCTS

Calibration Laboratories

National Metrology Laboratory (NML)

Calibration Laboratories for Internationally Traceable Measurements

Testing Laboratories Physical Testing Electrical Testing Textile Testing Acoustic Testing Chemical Testing Microbiological

Testing Medical Laboratories

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7. CONFORMITY ASSESSMENT CERTIFICATIONDIFFERENCE BETWEEN CERTIFICATION AND TESTING

Certification Measures against

specified standards

Results in a formal certificate of compliance

Testing Not necessarily

measures against specified standard

Results in a test report for a particular sample

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7. CONFORMITY ASSESSMENT CERTIFICATION

Certification Bodies

Government service organizations Private profit making organizations

Product certificationManagement System Certification

Use of Certification Marks

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7. CONFORMITY ASSESSMENT MANAGEMENT SYSTEM CERTIFICATION

Management System Certification QMS – ISO 9001 EMS – ISO 14001 OHSAS – ISO 18001 FSMS – ISO 22000 HACCP – CODEX STANDARD ON HACCP SR ISO 26000 ISMS ISO 27000

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INSTITUTIONAL WEAKNESSESS IN BANGLADESH

Mutual Recognition Arrangements(MRA) Accreditation Metrology Certification Testing Standards

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7. CONFORMITY ASSESSMENT ACCREDITATION

Accreditation

“Third party attestation related to a CAB covering formal demonstration of the competence to carry out specific conformity assessment task”

Need for accreditation is highlighted in the Article 6.1.1 of WTO TBT Agreement

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7. CONFORMITY ASSESSMENT ACCREDITATION

Accredited CAB is one of the tool that is helping businesses to gain competitive advantage and to expand into new markets including exports.

An increasing number of organizations are specifying accredited testing, inspection or certification as a precondition to tendering for contracts.

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7. CONFORMITY ASSESSMENT ACCREDITATION

Products and services from accredited system receive attention of the buyers of importing countries.

MRAs of regional trade co-operations like APEC, SAARC, EU etc can recognize APLAC MRA and PAC MLA.

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7. CONFORMITY ASSESSMENT ACCREDITATION

Scopes of Accreditation and compliance issues

1. Calibration and Testing Labs 2. Medical Laboratories 3. Certification Bodies 4. Inspection Bodies 5. Personnel Accreditation

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7. CONFORMITY ASSESSMENT ACCREDITATION

Benefits

Global Confidence in the Competence of Labs, CBs and Personnel

Global Market Access for Products and Services

Global recognition of product quality

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7. CONFORMITY ASSESSMENT ACCREDITATION

Benefits

Global Confidence in the Competence of Labs, CBs and Personnel

Global Market Access for Products and Services

Global recognition of product quality

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7. CONFORMITY ASSESSMENT ACCREDITATION

Bangladesh Accreditation Act, 2006 Bangladesh Accreditation Board- 2006 14 Member Board appointed in 2008 Manpower recruited in 2010 Controlling by Ministry of Industries

That is how the WTO TBT is being addressed in Bangladesh

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7. CONFORMITY ASSESSMENT ACCREDITATION

BAB is associate member of APLAC, affiliate member of ILAC, associate member of PAC and applied for membership of IAF.

Preliminary Evaluation for APLAC MRA has already been done in May 2013.

BAB has signed MOU with Belarus BSCA

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7. CONFORMITY ASSESSMENT ACCREDITATION

BAB has already awarded accreditation to 11national and multinational testing and calibration laboratories.

BAB has got more than 20 applications for accreditation from different testing and calibration laboratories

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7. CONFORMITY ASSESSMENT ACCREDITATION

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7. CONFORMITY ASSESSMENT ACCREDITATION

BAB is celebrating 09 June every year as World Accreditation Day since 2011 jointly with DCCI and arrange seminars on themes declared by ILAC and IAF

09 June has been declared National Day for celebrating World Accreditation Day by the Govt. of Bangladesh.

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7. CONFORMITY ASSESSMENT ACCREDITATION

BAB is actively participating in the preparation of NQP.

BAB is actively working as a vital organization for NQI

BAB has already accredited NMI of Bangladesh i.e, NML-BSTI in cooperation with NA

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7. CONFORMITY ASSESSMENT ACCREDITATION

Legal Entity

Bangladesh Accreditation Board (BAB)Ministry of Industries Building91, Motijheel Com. Area (5th floor)Dhaka 1000Tel: 8802 9513221Fax: 8802 9513222Website: www.bab.org.bd

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7. CONFORMITY ASSESSMENT MULTILATERAL RECOGNITION ARRANGEMENTS

Multilateral Recognition Arrangements (MRA)

Testing: Calibration, Testing, Medical Testing Certification: QMS, EMS, OHSAS, FSMS,

ISMS Inspection: BAB is required to sign MRA and MLA

accordingly

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7. CONFORMITY ASSESSMENT MULTILATERAL RECOGNITION ARRANGEMENTS

MRA & ACCREDITATION OF TESTING AND CALIBRATION LABORATORIES

BAB APLAC MRA NABL ILAC MRA PNAC EU MRA SLAB NA, DSM

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7. CONFORMITY ASSESSMENT MULTILATERAL RECOGNITION ARRANGEMENTS

MLA & ACCREDITATION OF CERTIFICATION BODIES

BAB PAC MLA NABCB IAF MLA PNAC EU MRA SLAB NA, DSM

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7. CONFORMITY ASSESSMENT MULTILATERAL RECOGNITION ARRANGEMENTS

MRA is the ultimate instrument of accreditation Facilitates trade among signatory countries One standard, one test and inspection

accepted Such agreements have their biggest

economic impact in countries that use accreditation as the mechanism of choice for the recognition of laboratories and certification bodies for regulatory purposes.

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7. CONFORMITY ASSESSMENT MULTILATERAL RECOGNITION ARRANGEMENTS

Challenges: Poor institutional trade capacity building No competitive program with neighboring

countries

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7. CONFORMITY ASSESSMENT

While conformity assessment activities such as testing, inspection, certification and accreditation, all appear in the background of a nation, and they do not inspire any glory or excitement in the mainstream of public opinion, they are a necessity without which a nation will suffer loss of exports in international trade.

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CAPACITY BUILDING OF NQI

BAB-associate member of APLAC and PAC

EPB DU, BUET BSTI-accredited BLRI FIQC-accredited NITTRAD Leather Institute-accredited IPH, DPHE BCSIR-accredited NBR BAEC DOE Labs PPW Customs Lab

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CHALLENGES

Inefficiencies Inadequacies in physical

infrastructure Power shortage Non Tariff Measures

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7. CONFORMITY ASSESSMENT MULTILATERAL RECOGNITION ARRANGEMENTS

Mindset of Government & Trading, Manufacturing and Relevant Organizations

Opportunities: EU UNIDO BEST Program FAO Program ADB Program including APMP, APLAC, APEC and

PAC SAARC Program of SAFTA, SARSO and SEGA

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BAB is making a difference in Bangladesh, and while it may take some time to attain the international recognition of its peers, it is well underway to meeting its nation’s need – conformity assessment to reduce technical barriers to trade.

Making a difference

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Thank you

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