Bangladesh’s Halal Certification Policy To Revolutionize Businesses

In a significant development aimed at boosting local production and enhancing global competitiveness, the Bangladesh Islamic Foundation (BIF), under the Ministry of Religious Affairs, has officially announced a comprehensive policy for halal certification. This groundbreaking initiative is poised to revolutionize the production, import, and export of shariah-compliant foods, pharmaceuticals, and cosmetics, offering a structured guideline for businesses to adhere to halal standards.

The policy, which marks a first for the BIF since its draft inception in 2015, mandates that businesses dealing in goods marketed as halal must obtain the necessary certification and associated logo. This step reflects the government’s commitment to promoting halal products and tapping into the burgeoning global demand. Md Abu Saleh Patwary, the deputy director for halal certification at the BIF, emphasized that the policy underwent rigorous refinements before reaching its final form, ensuring its effectiveness and thoroughness.

Under this policy, the BIF will issue halal certificates and logos on behalf of the government, with an initial validity of one year. However, this period may be extended up to three years, based on the standard of the factories involved. The policy also outlines strict compliance measures, including surprise inspections and verifications, to ensure that products are produced according to shariah principles and halal guidelines.

The BIF’s guidelines are comprehensive, covering not just food items but also pharmaceuticals and cosmetics. Herbal, Unani, and ayurvedic medicines are included in the pharmaceuticals’ halal certification. Even life-saving drugs, which are allowed to contain up to 0.5 percent alcohol for quality assurance, fall under this policy’s purview. Similarly, in cosmetics, the use of any fat or derivatives from prohibited animals is strictly banned, ensuring that products like soap, shampoo, toothpaste, and perfumes adhere to halal standards.

The policy extends its scope to the operational aspects of production as well, mandating adherence to good manufacturing practices and standard sanitation operating procedures. Additionally, it ensures that halal food items are segregated from non-halal items at all stages of production, processing, packaging, storage, and transportation.

The financial aspect of this policy is also clearly delineated. The BIF has set a structured fee system for halal certification and logo usage, based on the size of factories and slaughterhouses. Fees range from Tk 5,000 for small factories with investments of Tk 1-5 crore to about Tk 20,000 for large plants with investments exceeding Tk 50 crore. Slaughterhouses and local hotels and restaurants have their respective fee structures, with the latter paying up to Tk 2,000 for certification.

This policy arrives at a time when Bangladesh has already seen 179 companies receiving halal certification from the BIF, covering approximately 1800 items. Notably, 62 of these companies are exporters, contributing over 200 products to various international markets. Patwary highlighted the immense potential of the global halal market, currently valued at over $3 trillion and projected to grow to $7 trillion by 2025. Despite the lack of concrete data on Bangladesh’s halal market size, Patwary estimates it to be worth several thousand crores of taka, underscoring the significant economic opportunities this policy opens up.

In summary, the BIF’s halal certification policy is a strategic move by the Bangladesh government to foster local production, ensure compliance with global halal standards, and carve a niche in the international market. This policy is not just a regulatory framework; it’s a gateway to new economic horizons for Bangladesh, aligning with the global trend towards ethical and religious compliance in consumer goods.