BSTI, Islamic Foundation tussle over halal certification

The two state-owned agencies – Bangladesh Standard and Testing Institute, and Islamic Foundation – are engaged in a tussle over the sole authority of issuing halal certification for products and services in the country.

A halal certification means that a particular product is permissible or acceptable in accordance with Islamic law, and the foundation has been issuing these certifications since 2007 following an inter-ministerial decision, sources say.

However, through a gazette notification issued by the industries ministry on September 9 this year, the BSTI declared that it will begin issuing halal certifications alongside their standard ones.

This move has caused a stir among the senior officials of Islamic Foundation, insiders said, adding that the foundation recently submitted the final draft of Halal Certificate Policy 2021 to the Ministry of Religious Affairs last week.

The agency had formulated this amended draft policy in accordance with international standards, and it will soon be tabled in a Cabinet Division meeting for approval. This chain of events has triggered a silent tug of war between these two state agencies.

Under the existing Halal Certificate Policy 2015, securing Islamic Foundation’s certification and the use of its logo is mandatory for any company offering halal products or services in this country – even if they get this from somewhere else.

The revised policy mentions this rule too. So, even if a company takes halal certification from the BSTI, they will still have to secure the Islamic Foundation’s certification to sell their products both locally and in foreign markets, insiders say.

‘Businesses will face hassle’

Mufassir and Deputy Director of Islamic Foundation’s halal certification department Md Abu Saleh said, “If the BSTI issues halal certificates, the move will raise questions and businesses will face hassle.

“The Islamic Foundation has been issuing halal certificates because this is a religious matter.”

He continued, “An inter-ministerial meeting attended by officials from the industries, commerce, religious affairs, and fisheries and livestock ministries authorised the foundation to issue halal certificates. At that time, the BSTI had also agreed in this regard.

“We issue halal certificates with support from agencies such as the BSTI, Bangladesh Council of Scientific and Industrial Research (BCSIR), Directorate General of Drug Administration, Department of Fisheries, Department of Livestock Services, Department of Agricultural Extension, International Centre for Diarrhoeal Disease Research, Bangladesh and Food and Nutrition Department.”

The foundation has their own lab too, but it utilises many other laboratories including the BSTI, said Abu Saleh, adding, “We do not issue certificates using the results of just one lab, there are many different aspects to this process.

“The foundation follows the Organisation of Islamic Cooperation (OIC) standard in issuing halal certificates. We are also trying to strengthen our activities by signing a deal with Turkey.”

‘It will be easier for companies’

In a recent notification, The BSTI said it has amended The Bangladesh Standards and Testing Institution Act with permission from the government.

Section 18 of the law says a company – seeking halal certification and logo for its goods and services – will have to apply to the BSTI director general on the agency’s designated form. These certificates will have a validity of three years, which can be renewed after expiration.

A special audit team will scrutinise a company’s operations, and then the institution will issue a certificate on the basis of Halal Certificate Committee’s recommendation. The BSTI will reserve the right to cancel its halal certificates if any company breaks regulations.

The institution has set Tk1,000 as certificate or renewal fee for small enterprises, Tk 3,000 for medium enterprises, and Tk 5,000 for big enterprises.

BSTI sources said the Islamic Foundation has been issuing halal certificates for years citing the process as a religious issue. However, the Islamic Foundation Act 1975 does not have any mention of issuing halal certifications.

On the matter, the institute’s Certification Marks Wing Deputy Director Riyazul Haque said, “The business community told us that there is a demand for halal goods across the globe, especially in various Islamic countries.

“So, we tabled a proposal for issuing halal certifications before the BSTI board. The institute is also a member of the International Organisation for Standardization and the Standards and Metrology Institute for Islamic Countries.”

He continued, “The above mentioned two organisations gave BSTI some conditions to fulfill, which are necessary before issuing halal certificates. One of the recommendations was to carry out on-the-spot inspection to ensure that the products, raw material and ingredients are produced or sourced in a halal manner.

“We made the decision [to issue halal certifications] to support the domestic market and export activities.”

Adding that if the BSTI issues both standard and halal certificates, it will be easier for companies to secure both of these in one place, Riyazul said, “This move will benefit companies involved in local and foreign markets.

“The BSTI – after receiving an application – will inspect, examine and follow other necessary procedures before issuing a halal certificate, and it will be done following an international standard.”

What is the foundation’s revised policy?

According to the revised Halal Certificate Policy 2021, the Islamic Foundation will issue halal certificates and authorise the use of their logo to an applicant company only after it secures necessary certifications from other related government agencies.

The foundation will issue halal certificates for food items after confirming that it contains no haram ingredients. Besides, the food item processing equipment and ingredients must not be contaminated with any “napak” or impure substances.

For medicine, the revised policy says halal certificates will only be issued if an analysis of the ingredients reveals only halal and risk-free ingredients.

To carry out a thorough analysis, the foundation will take opinion from specialist organisations, specifically for products such as soaps, toothpaste and sprays. No halal certificates will be provided if any ingredients contain fat or body parts from haram animals.

The Islamic Foundation will perform analysis on products at their own halal laboratory, and perform inspections at factories and industrial establishments within 14 days of their application.

To apply for halal certification from the Islamic Foundation, a small factory or slaughterhouse will have to pay a fee of Tk 5,000, medium companies Tk 10,000 and large companies Tk 20,000.

Companies will have to pay five to eight paisa per Tk 100 in sales for using the halal certification, and four to five paisa for renewing the certification. The renewal fee has been set at Tk 500, and VAT will be applicable.

The Islamic Foundation’s revised policy further said the agency will establish a modern laboratory and sign memoranda of understanding with the BSTI and BCSIR. It will also apply to become members of Halal Accreditation Council and International Halal Accreditation Forum to ensure the foundation’s certifications meet international standards.

What do businesses say?

Industry insiders told The Business Post that the government must decide which one of its agencies will issue halal certificates. However, businesses want a sole agency to issue globally accepted certifications, as there is a significantly large market for halal goods in the world.

PRAN-RFL Group is exporting products to 140 countries across the globe. The conglomerate’s Marketing Director Kamruzzaman Kamal said, “Having halal certification is not mandatory to market products in Bangladesh, but it is necessary in a lot of other countries.

“We have taken certification from the Department of Islamic Development Malaysia (JAKIM) which follows the international standard. We also have certification from the Islamic Foundation. It is now also JAKIM-affiliated, so their certification is accepted by a lot of nations.”

He continued, “At this moment, both the BSTI and Islamic Foundation want to issue halal certificates, which is creating confusion among the business community. If businesses have to visit two agencies for a certification, they will face additional bureaucratic red tape.

“The government – for the sake of business communities – must designate a one stop service agency for issuing halal certification. This move will help companies gain international certification and expand the export market.”

Bangladesh Agro-Processors’ Association (BAPA) General Secretary Iqtadul Haque said, “The government should hold talks with all stakeholders and incorporate their feedback. The responsibility for issuing halal certification should be given to one designated agency.

“This will allow businesses to export goods across the globe with globally accepted certifications.”

According to a recent Islamic Foundation report, the global market for halal products is going up by 16 per cent – 25 per cent annually. The international market for halal products has already exceeded $3 trillion.

A number of countries, including Malaysia, Indonesia, Pakistan, Iran, Jordan, Turkey, Nigeria, Algeria, Saudi Arabia, Thailand, Singapore, Australia, America, Sweden and Middle Eastern countries are now issuing halal certificates to corner this large market.