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Dual halal certifying entities confuse exporters

Businesses want streamlined certification

Published: 06 Apr 2024

Dual halal certifying entities confuse exporters
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The Bangladesh Islamic Foundation under the Ministry of Religious Affairs took an initiative in 2007 to provide certificates for halal food exports following a demand from the business community.

However, the state-run authority could not build its own capacity over the last one-and-a-half decades to provide lab testing facilities for halal certification.

On the other hand, Bangladesh Standards and Testing Institution (BSTI) started to give halal certificates in 2021 to explore the untapped halal food market in the globe.

The act of awarding certification from two government organisations has created complexity and confusion among the business community, industry insiders say.

Talking to the Daily Sun, Vice-Chairman of IFAD Multi Products Limited Taskeen Ahmed said they have been exporting various products, including biscuits, chips, flour, semolina, cake, noodles and chanachur, to around 30 countries, including the Organisation of Islamic Cooperation (OIC) member states, for the last 10 years after taking certificates from the Islamic Foundation.

“The halal market is booming in both Muslim and non-Muslim countries for various reasons. However, Bangladesh is yet to grab the market. As we’re taking a certificate from the Islamic Foundation, we don’t need to take another from the BSTI. Businessmen always want an easy process for doing business.

So, a single government authority should be entrusted with the task to give certificates,” he said.
Taskeen said around 50% of the total halal exports go to the Middle East countries who prioritise religious issues alongside product quality.

“It’ll be better if the halal certificate is given from a single authority. The government should think about the matter. The government should also do more branding in different countries to increase exports,” he added.

Chief Marketing Officer of Akij Food and Beverage Ltd Md Maidul Islam said a BSTI official talked to him about the halal certificate. “As we’ve already taken a certificate from the Islamic Foundation, we’re evaluating which certificate will be better. However, we also have Food Export Certificates issued by the USA authority. So, we don’t face any certificate problems during exports,” he said.

“But our exporters face other problems like transportation, high duty and competitiveness. So, we need lab facilitation and to ensure product quality to increase the export share in the international market,” he said.

Bangladesh Frozen Foods Exporters Association (BFFEA) President Kazi Belayet Hossain said exports of frozen foods have declined due to reduced production. “The government should provide economic zones for fish production in both the Chattogram and Khulna regions to grab the export market.”
 Shari’ah compliance key matters

Senior Professor of Finance at King Abdul Aziz University of the Kingdom of Saudi Arabia Prof Dr Mohd Ma’Sum Billah shared his intellectual ideas with the Daily Sun.

He said being the 2nd largest Muslim country in the world, Bangladesh has great potential in the global halal market and the country can earn significant revenues in dollars by exporting its own halal products and services.

Bangladesh may also have a greater chance to create a halal barter trading hub in exchange for its own halal products, Ma’Sum Billah said.
“Different sources of meat and its end products like cow, buffalo, goat, lamb, deer, chicken, swan, quail bird and different categories of fish-related food products have high demand. Bangladesh can also be a hub for halal gelatin through its existing animal fats. Also there is a demand for fruit-related products like varieties of fruits, their end products like juice, cheeps and pickles.

Bangladesh may also position itself in producing halal cooking oil through sunflower which has a good demand in the global market. All those are among the fresh products that are mainly naturally available in and produced by Bangladesh, which may authentically enable Bangladesh to be among the lead producers and exporters of substantial halal products to meet the global halal demand significantly,” the internationally renowned economist informed.

He said, “In this context, the Bangladesh government has to ensure quality assurance aligned with the international halal market standards and the government shall also establish standard policy and guidelines as well as online marketing mechanisms compliant to the halal standards.

As regard to the policy and guidelines, it should be under the control of the government to be led by the Ministry of Religious Affairs as an appropriate authority on the subject. It may delegate the Islamic Foundation to ensure standardisation as per halal requirements. The core concern with Shari’ah compliance is to be strictly ensured by the Shari’ah advisory body consisting of Islamic scholars like mufti and a Shari’ah audit board to investigate that each and every aspect of the products, services, activities, policies and mechanism are aligned with halal standards.”

“Production process and services should be maintained by Shari’ah principles. It is very important to explore and attract the global market. In this regard, Bangladesh can follow Malaysia, Turkey, Egypt, Indonesia and other countries to ensure that the halal standards are strictly followed. In Saudi Arabia, there’s an independent Shari’ah council under the King, which confirms Shari’ah compliance in every food, services and other matters,” the professor said.

He explained that to maintain product standards and ensure compliance, methodology and investigation should be led by the Shari’ah advisory council and Shari’ah audit board. Each product should be scrutinised by scientific authorities, including product experts and auditors concerned.
BSTI violates rules

A gazette notification on ‘Halal Certification Policy-2023’ has been published.  As per the policy, the Islamic Foundation is the authority to give halal certificates. The foundation has been giving certificates since 2007 as per the directives of an intra-ministry meeting.

But the BSTI has recently started to give halal certificates in violation of the rules, said Assistant Director of Halal Certificate Department at Islamic Foundation Md Jahangir Alam.

He said 208 companies have taken halal certificates for around 2,000 products. In addition, 50 companies are in the process of getting certificates.

“Some 10 government organisations are working with us to ensure halal certification. Our certificates have international acceptance. Bangladeshi halal products are exported to over 35 countries. We’re working with Saudi Arabia and Turkey for accreditation to facilitate business,” Jahangir said.

He added that a testing lab is being built. It will be open soon. “The demand for halal products is increasing but there’s a lack of awareness in Bangladesh.”

BSTI Deputy Director (Certification Marks) Md Reazul Hoque said a total of 84 companies have so far taken halal certificates from them to export goods. An additional 23 companies are in the process of taking the certificates.  

“As the demand for halal products has increased globally and BSTI has international standard testing lab facilities, we took the initiative to give the certificate. The BSTI has acceptance internationally. A team has been formed with representatives of 14 organisations, including universities, Directorate of National Consumers Right Protection and FBCCI, to ensure product quality and provide certificates,” he said. (This is the concluding instalment of a two-part series on the prospects and challenges facing Bangladesh in the global halal food market.)

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