Keynote Paper Role of Accreditation in Export Promotion

Keynote Paper Role of Accreditation in Export Promotion Engr. M. Liaquat Ali Member, Bangladesh Accreditation Board DCCI Auditorium, 16 Feb 1014, 1

1 Introduction l l Objectives Acquire knowledge about Non-Tariff Barriers (NTB) hindering our export Understanding Role of Accreditation as a tool to overcome such trade restrictions 2

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GROSS DOMESTIC PRODUCT(GDP) SHARE l l l Services 48. 9% Industry 26. 5% Agriculture 24. 6% 4

2. INTRODUCTION TO WTO GATT ROUNDS 5

2. INTRODUCTION TO WTO STRUCTURE OF WTO Ministerial Conference General Council Meeting as Dispute Settlement Body Committees on various issues General 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 l l l 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 l Article 5: Procedures for Assessment of Conformity l 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 l l l 8

3. INTRODUCTION TO TBT CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS l Article 6: Recognition of Conformity Assessment l 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 l l 9

3. INTRODUCTION TO TBT CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS l Article 9 International and Regional Systems l 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 l l 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 l GATT Uruguay Round of Multilateral Trade Negotiations 1994 l Recognizing International Standards, guidelines and CA Systems Encouraging International Standards and CA Systems like CAC, IOE, IPPC Use of harmonized sanitary and phytosanitary measures l l l Non discrimination Protection and improvement of human, animal or plant life or health Technical Assistance 13

4. INTRODUCTION TO SPS 14

5. STANDARDS AND TECHNICAL REGULATIONS TECHNICAL REGULATION l Examples of Technical Regulation: l 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 l l l l l 15

MARKET ACCESS OBSTACLES l WTO Agreements and Rules European Union(EU) Directives l United States(US) Trade Rules for Import l Japan Trade Requirements Indian Import Requirements l l l FBCCI, DCCI, BAB & EPB should continually work on finding ways and means to identify these obstacles and recommend stakeholders for removing these 16

NON- COMPLIANCE WITH EU-HACCP l l 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 17

SOME EXAMPLES OF MRA l l 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 18

SPS MEASURES AS TRADE BARRIERS l l l 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. 19

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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 - 21

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Bangladesh and International Trade l l Bangladesh is a trading nation. Its economic growth and sustainability depends on 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. 23

Bangladesh and International Trade l l 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. 24

Bangladesh and International Trade l l 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. 25

Bangladesh and International Trade l 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. 26

PRODUCT DIVERSIFICATION IN EXPORT l l l IT Sector; Software Agricultural Processing Products (high value addition) Ceramics Melamine Bicycles 27

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 28

MAJOR COUNTRIES EU – Germany, UK, France, Italy, Belgium, Netherlands and Spain l US India l Canada China Japan Iran Singapore Pakistan l 29

EXPORTS TO INDIA l l l 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 30

7. CONFORMITY ASSESSMENT l l l 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 31

7. CONFORMITY ASSESSMENT FORMS USED l Testing of products Certification of products and management systems, Accreditation l Multilateral Recognition Arrangements (MRA) l l 32

7. CONFORMITY ASSESSMENT l l 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 33

7. CONFORMITY ASSESSMENT TESTING OF PRODUCTS Measurement Traceability National Metrology Laboratory (NML)-BSTI For Physical standards, signatory to BIPM CIPM MRA l National Chemical Laboratory DRi. CM-BCSIR, For Chemical standards, for producing CRM National Reference Laboratory For Medical Testing – Yet to be designated by Ministry of Health l 34

7. CONFORMITY ASSESSMENT TESTING OF PRODUCTS 35

7. CONFORMITY ASSESSMENT Calibration Laboratories l National Metrology Laboratory (NML) l Calibration Laboratories for Internationally Traceable Measurements TESTING OF PRODUCTS Testing Laboratories l Physical Testing l Electrical Testing l Textile Testing l Acoustic Testing l Chemical Testing l Microbiological Testing l Medical Laboratories 36

7. CONFORMITY ASSESSMENT CERTIFICATION DIFFERENCE BETWEEN CERTIFICATION AND TESTING l l l Certification Measures against specified standards l Results in a formal certificate of compliance l l Testing Not necessarily measures against specified standard Results in a test report for a particular sample 37

7. CONFORMITY ASSESSMENT CERTIFICATION l Certification Bodies l Government service organizations Private profit making organizations l Product certification Management System Certification Use of Certification Marks 38

7. CONFORMITY ASSESSMENT MANAGEMENT SYSTEM CERTIFICATION Management System Certification l QMS – ISO 9001 l EMS – ISO 14001 l OHSAS – ISO 18001 l FSMS – ISO 22000 l HACCP – CODEX STANDARD ON HACCP l SR ISMS l ISO 26000 ISO 27000 39

INSTITUTIONAL WEAKNESSESS IN BANGLADESH l Mutual Recognition Arrangements(MRA) l Accreditation Metrology Certification Testing Standards l l 40

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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 l 42

7. CONFORMITY ASSESSMENT l l 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. 43

7. CONFORMITY ASSESSMENT l l 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. 44

7. CONFORMITY ASSESSMENT l l l ACCREDITATION Scopes of Accreditation and compliance issues 1. Calibration and Testing Labs 2. Medical Laboratories 3. Certification Bodies 4. Inspection Bodies 5. Personnel Accreditation 45

7. CONFORMITY ASSESSMENT ACCREDITATION l Benefits l Global Confidence in the Competence of Labs, CBs and Personnel Global Market Access for Products and Services Global recognition of product quality l l 46

7. CONFORMITY ASSESSMENT ACCREDITATION l Benefits l Global Confidence in the Competence of Labs, CBs and Personnel Global Market Access for Products and Services Global recognition of product quality l l 47

7. CONFORMITY ASSESSMENT ACCREDITATION Bangladesh Accreditation Act, 2006 l Bangladesh Accreditation Board- 2006 l 14 Member Board appointed in 2008 l Manpower recruited in 2010 l Controlling by Ministry of Industries That is how the WTO TBT is being addressed in Bangladesh 48

7. CONFORMITY ASSESSMENT l l l 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 49

7. CONFORMITY ASSESSMENT l l ACCREDITATION BAB has already awarded accreditation to 11 national and multinational testing and calibration laboratories. BAB has got more than 20 applications for accreditation from different testing and calibration laboratories 50

7. CONFORMITY ASSESSMENT ACCREDITATION 51

7. CONFORMITY ASSESSMENT ACCREDITATION l 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 l 09 June has been declared National Day for celebrating World Accreditation Day by the Govt. of Bangladesh. 52

7. CONFORMITY ASSESSMENT l l l 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 53

7. CONFORMITY ASSESSMENT l ACCREDITATION Legal Entity Bangladesh Accreditation Board (BAB) Ministry of Industries Building 91, Motijheel Com. Area (5 th floor) Dhaka 1000 Tel: 8802 9513221 Fax: 8802 9513222 Website: www. bab. org. bd 54

7. CONFORMITY ASSESSMENT MULTILATERAL RECOGNITION ARRANGEMENTS Multilateral Recognition Arrangements (MRA) l l Testing: Calibration, Testing, Medical Testing Certification: QMS, EMS, OHSAS, FSMS, ISMS Inspection: BAB is required to sign MRA and MLA accordingly 55

7. CONFORMITY ASSESSMENT MULTILATERAL RECOGNITION ARRANGEMENTS MRA & ACCREDITATION OF TESTING AND CALIBRATION LABORATORIES l BAB APLAC MRA l NABL ILAC MRA l PNAC EU MRA l SLAB l NA, DSM 56

7. CONFORMITY ASSESSMENT MULTILATERAL RECOGNITION ARRANGEMENTS MLA & ACCREDITATION OF CERTIFICATION BODIES BAB PAC MLA l NABCB IAF MLA l PNAC EU MRA l SLAB l NA, DSM 57

7. CONFORMITY ASSESSMENT l l 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. 58

7. CONFORMITY ASSESSMENT MULTILATERAL RECOGNITION ARRANGEMENTS Challenges: l Poor institutional trade capacity building l No competitive program with neighboring countries 59

7. CONFORMITY ASSESSMENT l 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. 60

CAPACITY BUILDING OF NQI l l l l 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 l 61

CHALLENGES l l Inefficiencies Inadequacies in physical infrastructure Power shortage Non Tariff Measures 62

7. CONFORMITY ASSESSMENT l l MULTILATERAL RECOGNITION ARRANGEMENTS Mindset of Government & Trading, Manufacturing and Relevant Organizations Opportunities: l EU UNIDO BEST Program l FAO Program l ADB Program including APMP, APLAC, APEC and PAC l SAARC Program of SAFTA, SARSO and SEGA 63

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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. 65

Thank you 66