Keynote Paper Role of Accreditation in Export Promotion

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Keynote Paper Role of Accreditation in Export
Promotion

• Engr. M. Liaquat Ali
• Member, 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
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2. INTRODUCTION TO WTO STRUCTURE OF WTO
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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. TBT5.1.2
• No delay, the system must work expeditiously.
  TBT5.2.1
• Inspection points must be conveniently sited.
  TBT5.2.6
• International Compliance. TBT5.4

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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 manufacturers 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 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 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 Building
• 91, Motijheel Com. Area (5th floor)
• Dhaka 1000
• Tel [phone]
• Fax [phone]
• Website 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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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 nations need
conformity assessment to reduce technical
barriers to trade.
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• Thank you