Wednesday, May 20, 2009

[PIMEX] Phnom Penh Post: Imports inspector ends contract



Imports inspector ends contract Print
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Written by Kay Kimsong
Wednesday, 20 May 2009

*French company BIVAC set to leave Cambodia after finishing customs
operations in the Kingdom at the end of April, as Government says it has
acquired necessary expertise.*
090520_14.jpg
Photo by: *TRACEY SHELTON *
A lorry moves containers at Phnom Penh's dry port in this file photo.
French company BIVAC has finished its contract with Cambodia. The
government determined it now has sufficient capacity to undertake
pre-shipment inspections.

THE government will not renew its contract with BIVAC, the French
company contracted in April 2006 to undertake pre-shipment inspections
on goods imported from ASEAN nations.

Kun Nhem, the Customs and Excise deputy director general, told the Post
on Tuesday the government now has qualified staff that can do the job.

"The contract is finished and as of May 1 importers should not pay fees
to BIVAC," he said. "The contract ended officially on April 30. We are
now qualified to check the original prices of goods in the country of
origin for all shipments."

Pre-shipment inspection is the practice of employing specialised private
firms to check the price, quantity and quality of goods ordered from
another country.

Kun Nhem said the Kingdom had outsourced its pre-shipment inspection
role longer than any other ASEAN nation inspector, and noted that
import-tax revenues for May were unchanged compared with those months
for which BIVAC was responsible.

"Having BIVAC is the same as not having BIVAC," he concluded.

Kun Nhem said that under the BIVAC system, importers paid a fee to the
company for the service, and BIVAC's agents in the nations from where
goods were shipped would check the shipment.

"Now without BIVAC the importers are happy because they don't have to
incur this fee," he said, adding that the service added to the price
paid by consumers.

An office worker at BIVAC's Cambodia office confirmed that the firm
ceased pre-inspection work on May 1.

----------------------------------------------------------

Without BIVAC the importers are happy ... they don't have to incur
this fee.

----------------------------------------------------------

She said BIVAC charged importers US$250 for a 40-foot container, and
$200 for a 20-foot container, with a maximum charge of $500. She
referred all other questions to her managers, but the Post was unable to
contact them.

Chan Sophal, the president of the Cambodian Economic Association, said
cutting out BIVAC would benefit importers, and agreed that local
officials were technically able to take over the PSI role.

"Whether they have the will to do it is another matter," he said.

Chan Sophal said the government should take other measures to ensure
that revenue from customs fees ended up in the Treasury. He said low
salaries paid to Customs officials resulted in some keeping revenues for
themselves.

"With the economic downturn, the government should look at cutting
spending - such as spending on companies like BIVAC," he said. "And
corrupt customs officials take more money for their own pockets than
they hand to the nation."

He said officials should stop taking advantage of their positions and
should realise the revenue is needed to develop the country in a time of
economic crisis.

Tyre importer Kong Nuon, the chairman of the Kong Nuon Import and Export
Company, said the termination of BIVAC's contract had made the import
process easier and cheaper.

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Phnom Penh Post: Imports inspector ends contract

Imports inspector ends contract Print
<http://www.phnompenhpost.com/index2.php?option=com_content&task=view&id=25949&pop=1&page=0&Itemid=53>
E-mail
<http://www.phnompenhpost.com/index2.php?option=com_content&task=emailform&id=25949&itemid=53>


Written by Kay Kimsong
Wednesday, 20 May 2009

*French company BIVAC set to leave Cambodia after finishing customs
operations in the Kingdom at the end of April, as Government says it has
acquired necessary expertise.*
090520_14.jpg
Photo by: *TRACEY SHELTON *
A lorry moves containers at Phnom Penh's dry port in this file photo.
French company BIVAC has finished its contract with Cambodia. The
government determined it now has sufficient capacity to undertake
pre-shipment inspections.

THE government will not renew its contract with BIVAC, the French
company contracted in April 2006 to undertake pre-shipment inspections
on goods imported from ASEAN nations.

Kun Nhem, the Customs and Excise deputy director general, told the Post
on Tuesday the government now has qualified staff that can do the job.

"The contract is finished and as of May 1 importers should not pay fees
to BIVAC," he said. "The contract ended officially on April 30. We are
now qualified to check the original prices of goods in the country of
origin for all shipments."

Pre-shipment inspection is the practice of employing specialised private
firms to check the price, quantity and quality of goods ordered from
another country.

Kun Nhem said the Kingdom had outsourced its pre-shipment inspection
role longer than any other ASEAN nation inspector, and noted that
import-tax revenues for May were unchanged compared with those months
for which BIVAC was responsible.

"Having BIVAC is the same as not having BIVAC," he concluded.

Kun Nhem said that under the BIVAC system, importers paid a fee to the
company for the service, and BIVAC's agents in the nations from where
goods were shipped would check the shipment.

"Now without BIVAC the importers are happy because they don't have to
incur this fee," he said, adding that the service added to the price
paid by consumers.

An office worker at BIVAC's Cambodia office confirmed that the firm
ceased pre-inspection work on May 1.

------------------------------------------------------------------------

Without BIVAC the importers are happy ... they don't have to incur
this fee.

------------------------------------------------------------------------

She said BIVAC charged importers US$250 for a 40-foot container, and
$200 for a 20-foot container, with a maximum charge of $500. She
referred all other questions to her managers, but the Post was unable to
contact them.

Chan Sophal, the president of the Cambodian Economic Association, said
cutting out BIVAC would benefit importers, and agreed that local
officials were technically able to take over the PSI role.

"Whether they have the will to do it is another matter," he said.

Chan Sophal said the government should take other measures to ensure
that revenue from customs fees ended up in the Treasury. He said low
salaries paid to Customs officials resulted in some keeping revenues for
themselves.

"With the economic downturn, the government should look at cutting
spending - such as spending on companies like BIVAC," he said. "And
corrupt customs officials take more money for their own pockets than
they hand to the nation."

He said officials should stop taking advantage of their positions and
should realise the revenue is needed to develop the country in a time of
economic crisis.

Tyre importer Kong Nuon, the chairman of the Kong Nuon Import and Export
Company, said the termination of BIVAC's contract had made the import
process easier and cheaper.

[Thailand] Rice exports hit by fall in prices, demand amid soaring supply

May 20, 2009
By Petchanet Pratruangkrai
The Nation

Thai rice exports will suffer this year, with prices set to decline into
next year from increased supply in the world market and bearish demand,
a seminar heard yesterday.

Moreover, Thai rice trading will face more problems due to insufficient
development of both crop production and irrigation. Several recent
administrations have been unclear on development of a sustainable rice
policy.

The crop is a major export for the Kingdom.

At a seminar yesterday hosted by Thai Rice magazine entitled "Rice Price
Trends: Reduced Risk for Coping with the Global Crisis", traders,
government officials and economists said the price was set to drop
slightly into next year, due mainly to a combination of lower demand and
greater supply.

Thai Rice Exporters Association president Chookiat Ophaswongse said more
rice exporters had entered the market this year.

"Burma and Cambodia have started exporting large amounts of low-grade
rice for less than US$300 [Bt10,200] per tonne to the world market.

"India will soon export up to 3.5 million tonnes of rice from more than
20 million tonnes stockpiled this year," said Chookiat.

Greater supply in the world market and bearish demand during the world
economic slump will pull down rice prices, he said.

Chookiat said the government's recent decision to sell off large volumes
of rice via bidding caused Thai prices to fall.

Before the bidding, Thai rice was quoted at $530 a tonne in the world
market. Now it is down to $490 a tonne.

Last year, India suspended rice exports, because of a domestic shortage
problem. Burma exported up to 700,000 tonnes of 25-per-cent white rice
in the first four months of the year.

Thailand Development Research Institute president Nipon Poapongsakorn
told the seminar he, too, believed the rice price would fall gradually
until next year.

"The world economic slowdown has meant lower demand for rice. Lower oil
prices, which affect crop prices, will also ensure the rice price
remains unchanged or decreases slightly in the second half of this
year," said Nipon.

However, some factors could actually cause a slight increase in the
price, such as increased demand in certain markets. These could include
major rice importers Indonesia and the Philippines.

Commerce Ministry permanent secretary Siripol Yodmuangcharoen said not
only India would become an important rice-export rival of the Kingdom,
but also Pakistan, which is set to export up to 4 million tonnes this year.

Kwanchai Gomez, secretary-general of the Thai Rice Foundation under
Royal Patronage, said uncertainty about the rice price would be
prolonged as long as development of rice production and quality was delayed.

This will also result in a huge cost burden for farmers.

She said Thailand's rice production must be developed to meet a
particular quality and yield per rai.

"Thai farmers have long suffered from low incomes and little management
expertise.

"The government must focus on providing knowledge to newer generations,
to ensure the development of rice farming, as well as the creation of
sustainable incomes to increase the quality of life for rice farmers,"
she said.

Thai Farmers Association president Prasit Boonchuey said instead of
losing more than Bt20 billion in a pledging scheme, the government
should consider investing Bt10 billion each year for the sustainable
development of rice farming, production and irrigation.

He said rice-price volatility was connected to the world market and
middlemen.

Rice farmers have always experienced unpredictable rice prices, even
during the pledging scheme. The government must establish a long-term
agenda to ensure long-term sustainability in rice trading and prices,
Prasit said.

Sunday, May 10, 2009

Asia- more economic troubles ahead

Sunday May 10, 2009
RANDOM THOUGHTS By Neville de Silva
The Sunday Times (Sri Langka)

Asia which overcame the financial crisis of 1997/98 which started here
in Thailand, felt it was better equipped to deal with the current global
turmoil that has caused havoc in western economies.

Better supervision and regulatory measures over financial institutions,
some believed, would cushion this part of the world from the worst
features of the meltdown in banking and financial circles in the West
where it all started. That, it now seems, was wishful thinking. It does
not appear to have taken account of the fact that the financial crisis
which began last year came on top of other economic problems which
compounded the situation. What it means is that Asia is not out of the
woods, not by a long shot and more difficulties lie ahead before it gets
better, if it does.

That is the impression gathered, listening to a stimulating discussion I
sat through the other day at the 65th Session of the Economic and Social
Commission for Asia and Pacific (ESCAP), a regional body of the United
Nations based in Bangkok. It was a discussion on the financial crisis by
a high-level panel that brought together several eminent persons from
different disciplines and so provided the breadth of knowledge that an
issue of this nature really needs, impinging as it does on every aspect
of society and cutting across socio-economic lines. One of the critical
factors that do not appear to have been seriously regarded by those who
thought that Asia had somehow managed to escape the worst ravages of an
economic crisis that has yet to run its course, is the trade
relationship between Asia and the western world.

Asia's trade integration with the economies of the west is relatively
high- about 50% of the GDP of this region. Then consider this
continent's financial integration with western economies, particularly
so with the US, which amounts to 40% of the region's GDP. Earnings from
tourism, remittances by expatriate workers from Sri Lanka, Bangladesh,
Philippines and others and Official Development Aid also make up a
substantial part of the GDP of several of Asia's less developed countries.

As was pointed out in the course of the discussion, a one percentage
point drop in growth in the United States would constitute a 0.6
percentage point decline in Asia's GDP. As was stated last week the
present crisis is different from any that has gone before. It is really
a global crisis as it has a much greater impact economically and
socially throughout the world than anything previously. It was also
stated that this present crisis is likely to be deeper and of a long
duration than any in the past. Moreover recovery would be much slower.
One reason for this is that the crisis was born at the centre of the
system and not on the sidelines and so it is going to be much harder to
contain.

As I have already said this crisis was preceded by a food and fuel
crisis when food prices skyrocketed and fuel prices reached
unprecedented levels. Sri Lankan consumers are well aware of the
difficulties that faced them during those hard times. True, food and
fuel crisis now seems gone and prices have stabilized at lower levels.
But who is to say that it may not happen again. It might be recalled
that Asian countries came out of the financial turmoil of a decade or
more ago by stimulating their export sector. It was an export-led
strategy that helped Asia come out of that particular situation. But
obviously that strategy cannot save them this time round for the credit
crunch in the west and the significant drop in consumer spending
especially on imported goods and what might be considered luxuries or
non-essentials would not allow Asian countries to depend once more on
increased export earnings for economic recovery.

The World Trade Organisation predicts that the volume of global trade
which rose by 6% in 2007 and 2% last year will fall sharply by 9% this
year. If so it would be the biggest drop in 40 years. It is said that in
recent months exports declined in many Asian countries as import demand
contracted in the industrialized economies. So labour-intensive export
industries such as garments and textiles, footwear, toys, gems and
jewellery were seriously affected.

That drop in exports would affect countries such as Sri Lanka which rely
quite heavily on the garment industry for export earnings. If the
withdrawal of the GPS Plus trade concession comes on top of this, the
country's import earnings could suffer badly. Sri Lanka is not the only
Asian country with labour-intensive industries that face this situation.
Bangladesh, Cambodia, China, India, Indonesia and Vietnam are some of
the others. That is not all. Growth in Asia is also expected to slowdown
perceptibly. Growth which recorded 9% in 2007 will drop to 4-5% this
year. The prospects for the coming year are uncertain so that a question
mark hangs precariously over 2010 as we move inexorably towards the
target date for achieving the Millennium Development Goals.

The current prediction is that if one excludes China and India the rest
of Asia will show no growth this year. Now here is the crunch. The
jobless in Asia rose from 79 million in 2007 to 84 million in 2008. If
that increase of 5 million in one year is considered unacceptable, then
worse is to follow this year.

Asia's unemployment this year is estimated at 94 million a jump of 10
million in one year. If that is bad news, worse is to come. Due to the
current crisis labour in the informal sector such as tourism,
construction industry, textiles and garments, small and medium
enterprises, trade and retail are not only likely to lose their jobs but
their wages are also expected to decline substantially. For those who
still fantasize about achieving most of the Millennium Development Goals
in the next five or more years, especially with regard to poverty, here
is something to ponder.

A 100 million people will be pushed into poverty. That is in a region
that still has 900 million people living under conditions of extreme
poverty. There is more bad news. But I think this is sufficient for one
morning.

The writer is a serving Sri Lankan diplomat.

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