The National Board of Revenue (NBR) has taken this decision against the backdrop of demands from many businesses to discontinue services of PSI companies.

The businessmen allege that PSI companies harass importers and commit gross malpractice in valuation of imported goods.

"We have finalised a tender schedule for recruiting an international audit agency and hope that we can appoint such an agency within the next two months," said Rashid ul Ahsan Chowdhury, NBR member (customs).

He said PSI services should not be a permanent system for valuation of goods but the government cannot discontinue their services instantly as it has agreements with them until 2008.

Customs experts claimed that the government incur losses of Tk 15,000 to 20,000 crore or 20 to 25 percent revenue from customs sector alone each year due to PSI Companies' issuance of false CRF (clean report of findings), and corruption in connivance with a section of customs officials.

Ehsanul Haque, an electronic goods importer from Nawabpur in the capital, said if businessmen bribe inspection officials and customs officials, it is easy for them to get reports as per their requirements. But if a businessman wants actual valuation of goods without bribery, both PSI officials and customs officials give whimsical valuation reports.

"Many businessmen continue to bribe both the customs officials and PSI companies to avert harassment and get imported goods cleared easily," he said.

Mir Nasir Hossain, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said PSI companies were engaged with the aim of reducing discretionary powers of customs officials but they have failed.

Customs officials frequently challenge CRF of PSI companies and check consignments indiscriminately violating PSI rules.

According to PSI rules, customs officials can check up to 10 percent of goods on the basis of random sampling but they do not comply with the rules, Nasir said. "If the rules are not followed, why continue PSI services?"

The FBCCI chief went on, "We still do not oppose continuation of PSI services but we demand that the government ensure compliance with PSI regulations and reduce the service charges."

A high official of a PSI company said these companies cannot involve in any kind of corruption as their activities are strictly monitored by both businessmen and customs officials.

On harassment of importers, he said PSI companies do not harass anyone. Rather, customs officials harass businessmen, and initiatives taken earlier to stop this proved a failure.

The official further said many false and exaggerated allegations have been spread against PSI companies. He however said the NBR sometimes imposed penalties on these companies for their faults.

Seeking anonymity, he said if any unskilled audit firm is appointed to monitor PSI companies' activities, it would have a serious negative impact on this sector. "Financial audit and PSI audit are not the same. A highly efficient and internationally reputed audit agency can help eliminate misgivings about PSI services."

Following allegations from businessmen, the NBR had conducted a survey to find out irregularities of PSI companies but it found only three percent faulty CRF issuance.

The survey based on random sampling found 622 faulty CRF out of 47,148 issued by PSI company Cotecna during the last one year. And 341 CRF was found wrong out of 29,450 issued by Intertek Testing Services (ITS) company during the same period.

Moreover, it found 177 wrong CRF of SGS out of 32,420 and 291 wrong CRF of Bureau Veritas out of 18,841 during the last one year.

When contacted, officials of the companies declined to comment on the issue.

Rashid said issuance of wrong CRF will decrease if the NBR maintains an updated valuation database and send customs officials to foreign offices concerned.

"The NBR is preparing such a valuation database to keep the NBR updated on goods prices across the world."

The NBR member further said customs department runs short of manpower and the existing manpower does not have enough expertise on customs rules.

"The NBR with the help of the World Bank has taken up two capacity building projects, and on completion of those NBR officials will be able to carry out the inspection duties properly," he added.