MULTAN, Dec 7: The Trading Corporation of Pakistan (TCP) did not forfeit the performance bond and other guarantees of the Australian Wheat Board (AWB) although the corporation was informed that certification of conditions attached to the import permit has not been made by the quarantine authority in Australia.
The AQUIS has not conducted the said certification attached to the import permit issued by the TCP, the officials were informed.
Earlier, the Australian Wheat Board had offered bids for supply of 84,000 tons of Australian white wheat at $527 per ton on Nov 19, and after matching the price, the tender was later issued to the AWB at $511.75, instead of awarding it to the parties offering lower rates. The AWB had also then promised to expedite shipment within a week.
The AWB had later confirmed its sale in an undated letter written by Paul O, Neill to Iqbal Hussain, General Manager (Imports), and had requested for opening of the letter of credit to expedite shipment from any Australian port.
In the meantime, Abdul Malik, TCP chairman, wrote a letter (CSD/W7-8/2007) to Mohammad Ziaur Rehman, secretary to the ministry of food, agriculture and livestock, stating that as per terms of the wheat import tender (based on 2004 wheat import tender of TCP) Clause (C ) of 12, “the official testing agencies of the country of export (e.g, FGIS/APHIS in the US, CGC/CFIA in Canada, AFT/AQUIS in Australia, etc) are required to conduct tests for all the factors of the specifications, the sellers shall notify to the buyer, and the TCP-appointed PSI in advance if factors of specifications are not being tested by the official testing agencies.
“The supplier AWB through their local agent, M/s Meshe International, have informed us that the AQUIS doesn’t conduct certification of the additional (that are not really additional) conditions attached to the import permit issued by the Plant Protection Department and that during 2004 import by the TCP, the additional conditions on the import permit were withdrawn by the Plant Protection Department and were tested/certified by the TCP-nominated pre-shipment inspection agency (PSI).”
He said: “The AWB requested additional conditions in the import permit to be indicated as withdrawn because any specification mentioned in the import permit are treated to be obligatory for AQUIS and they have also informed that in the past imports of wheat executed by the TCP, the additional conditions were withdrawn on the import permit.”
He further wrote: “the party has also referred to Clause 12, sub clause-C part III of the tender documents which states that the certification for phyto-sanitary and quarantine at load port issued by the government agency of the country origin shall be final and binding with no inspection or testing at discharge port. However, the buyer reserves the right to send technically qualified officers of the Plant Protection Department who shall be arranged by the seller to be allowed association in the process and observer/witness by such government agency as and when such officers are sent for that purpose.”
He wrote that the matter was taken up with the Plant Protection Department which has informed that it was beyond their competence to waive off the said conditions from the import permit.
At the end of the letter, he had requested that the Plant Protection Department should waive off the additional conditions, enabling the TCP’s PSI to conduct tests and send team for checking as shipment of vessels is withheld.
Pakistan had returned four ships of wheat imported by the same exporter in 2004 after founding contamination in wheat.
Dr. Attaur Rehman, the then advisor to the prime minister, in his report, after conducting wheat sample analysis, had confirmed that wheat in all the four ships was contaminated with fungus (Tilletia sp.) and wrote that tests carried out at the National Agriculture Research Centre established this to be “Karnal Bunt” (Tilletia Indica) whereas the Australians, while agreeing that the wheat consignment was contaminated by a fungus, suggested that the consignment may contain another closely related fungus species Tilletia Walkeri and not Tilletia Indica. Whoever, since both species are pathogens (disease causing).
A suit No469, namely tradesman versus Federation of Pakistan, is pending before the Sindh High Court regarding the return of those four ships in 2004. The interesting point is that the then TCP chairman is now federal cabinet secretary.
Abdul Malik TCP chairman, was not available for his comments even after many attempts on his cell phone.
