Difference Between Registration & Membership Elaborated

The Union of Small and Medium Enterprises (UNISAME) has urged the ministry of law, justice and parliamentary affairs to expedite the reference filed by the ministry of commerce (MoC) for the dissolution of the Quality Review Committee (QRC) and enable closure of the QRC for the betterment of the rice industry in Pakistan by giving them a free hand and removing hurdles.

President UNISAME Zulfikar Thaver pointed out that it is believed that the federal commerce minister Khurram Dastagir being convinced of the futility of QRC directed the Moc to seek no objection certificate (NOC) from the law ministry for the closure of the QRC and it is believed that the QRC will be shut down on receipt of the NOC from the law ministry and notification is likely to be issued promptly and the closure will take place this week.

He said the QRC was basically formed to protect the basmati label but now that rice is sold by by the buyers and the exporters in their own popular brands and other varieties which are not basmati but more costly and more in demand are flooding the markets. The job of the QRC is now meaningless.

Secondly most of the buyers have their own nominated PSI agency to carry out PSI. QRC never made efforts to get 386 a very popular variety approved as basmati although in India 386 is considered and approved as basmati but in Pakistan QRC allowed its export underhand as basmati but did not recommend it to be approved as basmati for reasons best known to itself. It is only with the efforts of REAP that it will be approved as basmati soon. QRC is devoid of any substantial work as a protector of basmati and in fact is creating hurdles in its exports due to lack of knowledge on the subject.

Needless to state that basically the QRC was formed in violation of the principles of pre-shipment inspection (PSI) and the Pakistan Standard Quality Control Authority (PSQCA) never recognized and enrolled it as a PSI body because it did not comply with the rules and regulations of the PSQCA and international standards. A PSI body has to be a joint stock company incorporated and with a capital sufficient to pay claims against irresponsible inspections, it needs to be eligible, qualified and must have DNA facilities and laboratory fully equipped with all measuring and quality assessment equipments. It is very important that it has to be independent, transparent and a third party. It cannot be managed by vested interest.

It is very disheartening to note that although the MOC had notified in April 2012 about the removal of the condition of mandatory membership of the Rice Exporters Association of Pakistan (REAP) the QRC kept insisting on REAP membership for rice exporters although being aware of the removal of the mandatory condition.

The Trade Development Authority of Pakistan (TDAP) has been asked to take notice of the behavior of the QRC and to take action against the controllers for deceiving the rice exporters and compelling them to become members of REAP.

According to REAP they are abiding by the Strategic Trade Policy (STP) which indicates that exporters of vegetables, fruits, rice etc will register themselves with their respective trade associations and in the absence of the association with TDAP. However REAP is misinterpreting the STP which clearly uses the word registration and not membership which are distinctively different. Registration is for the purpose of simply recording and membership means participation as a member. Being enrolled as a member is different and being registered as an exporter is different.

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