The National Board of Revenue (NBR) has unilaterally dropped a company assigned earlier through international bid for the work of pre-shipment inspection (PSI) on imported goods in the private sector and distributed its load of work among two other enterprises without following legal formalities, it is learnt.

Informed circles said that instead of renewing contract with the qualified company, appointment of new enterprises without tender was highly unlawful and illegal.

The mandatory pre-shipment inspection for private imports was introduced with effect from February 15, 2000 to plug revenue leakage. Accordingly, three internationally reputed companies were given the responsibility of undertaking PSI by dividing importing countries across the world into three blocks-A, B and C.

The companies got the work through international tenders and started functioning from mid February,2000 under the cover of three-year contract signed with the NBR. They started working on minimum charges to be paid by the NBR in time.

As per contract, PSI company ITS was assigned for block A while BSI British Standard Institute (BSI) for block B and BV for block C.

Despite expiry of three-year contract on February 15, 2003 the NBR authorities had to renew agreements with the PSI companies for eight times consecutively. This was due to failure of the NBR to appoint new PSI companies through open bid, informed circles said.

Official sources pointed out that the NBR authorities floated international tenders at different times by dividing importing counties into five blocks but failed to select qualified PSI companies through tender. In view of this the NBR decided to continue to renew earlier contracts until new PSI companies are chosen through international tenders, competent sources said. Surprisingly, the NBR authorities disagreed to renew contract with BSI to continue PSI work and assigned PSI work of block B to ITS and SGS violating existing rules.

Indeed, fresh appointment of PSI company without tender is contrary to the conditions of the contracts signed at the beginning of the PSI work in 2000. Such unlawful decision is also naked manifestation of favouritism and harassment. said competent sources.

Interestingly, the victim BSI is yet to get its outstanding bills from NBR against PSI work in block B as the NBR shows reluctance to issue for obvious reasons.

Meanwhile, the appointment of new PSI companies through international bid has become uncertain as tender procedures now remain shelved following legal complexities. The NBR authorities floated tenders last month but the procedures could not go ahead because of legal battle, official sources said

It may be mentioned that payment against import during last financial year amounted to over 10,903 million US dollars. Of the total amount, fifty percent were paid against import of goods in the private sector, bank sources said.