pre-shipment inspection wto prepared by abubakar bhatti
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Pre-Shipment InspectionPresented by:Waqas LiaqatAbubakar AzizSyeda Itrat RizviMuhammad Ali RazaMuhammad Khurram
Pre-shipment inspection(PSI) activities" are allactivities relating tothe verification of thequality, the quantity,the price, includingcurrency exchange rateand financial termsand/or the Customsvaluation andclassification of goodsto be exported to theterritory of the UserGovernment.
PRESHIPMENT INSPECTION
WHY PSI• Companies provides pre-shipment
inspection services to governments as away of protecting import revenues forthemselves and their citizens.
• Governments implement PSIprogrammes to ensure that importscomply with their regulations. Non-compliance with these regulations canresult in:
• The loss of valuable duty and taxrevenue
• The loss of foreign exchange reserves(in countries where exchange controlsexist)
• The importation of substandard orprohibited goods
HOW IT WORKS
• A physical inspection of goods is carriedout pre-shipping, in the country of export,establishing the exact nature of the goods.
• The invoice and other documents are thenscrutinised, and an accurate valuation, andcustoms tariff code, are assigned. Theseare used, in conjunction with the clientcountry's published duty rates, to calculatethe correct duties and taxes payable.
• A certificate is issued to the importer. Thisis used to substantiate the payment of fullduty, prior to clearing the goods.
• The actual duty collected is compared withthe certificates, and any shortages can beinvestigated and corrected.
BENEFITS
• By using our services, you willbenefit from:
• Certification by an internationallyrecognized Conformity Assessmentbody.
• Assurance that your products arecompliant with standards andtechnical regulations.
• Streamline the customs clearance.• Consistent with the rules,
regulations of the importcountries.
The term “user Member” means a Member of which the government or anygovernment body contracts for or mandates the use of preshipment inspectionactivities.
The term “preshipment inspection entity” is any entity contracted or mandatedby a Member to carry out preshipment inspection activities.
"User Government" is a government or government body which contracts for ormandates the use of preshipment inspection activities.
"Preshipment inspection (PSI) activities" are all activities relating to theverification of the quality, the quantity, the price, including currency exchangerate and financial terms and/or the Customs valuation and classification of goodsto be exported to the territory of the User Government.
"IFIA PSI Member" is a company, performing preshipment inspection activitiescontracted or mandated by a User Government, which is a member of IFIA.
"External Expert" is an individual engaged to provide additional resources orexpertise.
"Subcontractor" is another company which is contracted to provide PSI activitiesin a particular geographical area or field of expertise.
TERMS
Non –discrimination User Members shall ensure that PSIactivities:
Objective
Applied on equal basis
Uniform performance of inspection
Governmental Requirements
According to the laws, regulations& requirements
Paragraph 4 of article III of GATT1994
Standard
In the exporting country/ manufacturing country:
Inspection Activities
Issuance of “Clean Report of Findings” or a “Note of non-issuance”
Site of Inspection
International Standards
National Standards
Transparency
Protection of Confidential Information
Ensure that PSI entities:
Maintain procedures for treatinginformation as confidential
Doesn’t share to 3rd Party exceptGovt.
Certain information not to beasked from exporters…..
User members to ensure that PSI entities maintain procedures to
avoid conflict of interest
Conflict of Interest
Delays
User members to ensure that psi
entities avoid unreasonable delays in
inspection of shipments; once fixed,
date to be implemented
report within 5 working days
Give opportunity to exporter for
writing, and arrange re-inspection on
request at earliest
Clean Report of Findings
Prevent over/under invoicing & Fraud.
For comparison verification based on export prices of similar goods from:
same country,
about same time,
under competitive & comparable conditions of sale, etc.
Verification of transport invoicing or fraudationcharges only w.r.t. exporting country
Price Verification
selling price of such goods produced in importing country
price in another country,
cost of production
arbitrary or fictitious prices or values
Aspects not to be used for verification
PSI entities shall establish procedures toconsider grievances raised by exporters as perguidelines:
Designate officials to consider & decide ongrievances
Exporters to give in writing to designatedofficers the nature of grievance, the facts& suggested solution
Designated official to give a sympatheticconsideration & a quick decision
Appeals Procedure
Derogation
Consignments of value less than a minimum value shall not be
inspected
Obligations Of Exporter Members
• Non-discrimination
• Transparency
• Technical Assistance
Independent Review Procedures
• Members to encourage mutual resolving of disputes, but either
party may refer dispute for independent review
(a) Establishes an independent entity.
(b) Independent entity establish list of experts
o Representing preshipment inspection entities
o Representing Exporters
(c) Complaints to IRE to be examined by panel of 3 experts
(d) Independent trade expert will be chairman of the Panel.
(e) Both the parties in dispute to present their views in person or in
writing
(f) Decision to be by majority vote, within 8 days
(g) Decision binding
Notification
• Submit to the Secretariat
copies of Laws & Regulations
• No changes in
laws/regulations
Review • Review to be done at end of
2nd year
• Every 3 years after entry
into force
• Ministerial Conference to
review provisions, operation
& implementation
Consultation & Dispute Settlement
• Article 7
Consultation
• Article 8
Dispute Settlement
• Article 9
Final Provisions requires
Conclusion
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