Transcript TRAINING PROGRAMME

Keynote Paper
Role of Accreditation in
Export Promotion
Engr. M. Liaquat Ali
Member, Bangladesh Accreditation Board
DCCI Auditorium, 16 Feb 1014,
1
1 Introduction
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
Objectives
Acquire knowledge about Non-Tariff
Barriers (NTB) hindering our export
Understanding Role of Accreditation as a
tool to overcome such trade restrictions
2
3
GROSS DOMESTIC PRODUCT(GDP)
SHARE
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Services 48.9%
Industry 26.5%
Agriculture 24.6%
4
2. INTRODUCTION TO WTO
GATT ROUNDS
35
30
25
20
Av. Tariff %
15
10
5
0
1947
1962
1972
1987
1995
5
2. INTRODUCTION TO WTO
STRUCTURE OF WTO
Ministerial
Conference
General Council Meeting as
Dispute Settlement Body
Committees on
various issues
General Council
Council for
Trade in Goods
Council fpr
TRIPS
General Council Meeting as
Trade Policy Review Body
Council for
Trade in Services
6
3. Some Non-Tariff Barriers to International
Trade
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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
7
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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8
3. INTRODUCTION TO TBT
CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS
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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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
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3. INTRODUCTION TO TBT
CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS
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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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10
3. INTRODUCTION TO TBT
CONFORMITY WITH TECHNICAL
REGULATIONS AND STANDARDS
11
3. INTRODUCTION TO TBT
CONFORMITY WITH TECHNICAL
REGULATIONS AND STANDARDS
12
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
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Non discrimination
Protection and improvement of human, animal or
plant life or health
Technical Assistance
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4. INTRODUCTION TO SPS
14
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
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United States(US) Trade Rules for Import
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Japan Trade Requirements
Indian Import Requirements
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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
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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
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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
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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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20
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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22
Bangladesh and International Trade
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
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
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
In short, that agreement specifies that
nations should strive to remove the nontechnical 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
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
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
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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
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EU – Germany, UK, France, Italy,
Belgium, Netherlands and Spain
US
India
Canada
China
Japan
Iran
Singapore
Pakistan
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EXPORTS TO INDIA
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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
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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
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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
Calibration
Laboratories
 National Metrology
Laboratory (NML)
 Calibration
Laboratories for
Internationally
Traceable
Measurements
TESTING OF PRODUCTS
Testing Laboratories
 Physical Testing
 Electrical Testing
 Textile Testing
 Acoustic Testing
 Chemical Testing
 Microbiological
Testing
 Medical Laboratories
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7. CONFORMITY ASSESSMENT
CERTIFICATION
DIFFERENCE BETWEEN CERTIFICATION AND TESTING
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Certification
Measures against
specified standards

Results in a formal
certificate of
compliance
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Testing
Not necessarily
measures against
specified standard
Results in a test
report for a particular
sample
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7. CONFORMITY ASSESSMENT
CERTIFICATION
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Certification Bodies
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Government service organizations
Private profit making organizations
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Product certification
Management 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
ISMS

ISO 26000
ISO 27000
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INSTITUTIONAL WEAKNESSESS IN BANGLADESH

Mutual Recognition Arrangements(MRA)
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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
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
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
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
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
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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
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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
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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
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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
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ACCREDITATION
Legal Entity
Bangladesh Accreditation Board (BAB)
Ministry of Industries Building
91, Motijheel Com. Area (5th floor)
Dhaka 1000
Tel: 8802 9513221
Fax: 8802 9513222
Website: www.bab.org.bd
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7. CONFORMITY ASSESSMENT
MULTILATERAL RECOGNITION ARRANGEMENTS
Multilateral Recognition Arrangements (MRA)
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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
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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
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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
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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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61
CHALLENGES
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Inefficiencies
Inadequacies in physical
infrastructure
Power shortage
Non Tariff Measures
62
7. CONFORMITY ASSESSMENT
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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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Making a difference
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.
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Thank you
66