![Page 1: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/1.jpg)
Pre-Shipment InspectionPresented by:Waqas LiaqatAbubakar AzizSyeda Itrat RizviMuhammad Ali RazaMuhammad Khurram
![Page 2: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/2.jpg)
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
![Page 3: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/3.jpg)
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
![Page 4: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/4.jpg)
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.
![Page 5: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/5.jpg)
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.
![Page 6: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/6.jpg)
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
![Page 7: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/7.jpg)
![Page 8: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/8.jpg)
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
![Page 9: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/9.jpg)
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
![Page 10: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/10.jpg)
Transparency
![Page 11: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/11.jpg)
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…..
![Page 12: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/12.jpg)
User members to ensure that PSI entities maintain procedures to
avoid conflict of interest
Conflict of Interest
![Page 13: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/13.jpg)
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
![Page 14: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/14.jpg)
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
![Page 15: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/15.jpg)
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
![Page 16: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/16.jpg)
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
![Page 17: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/17.jpg)
Derogation
Consignments of value less than a minimum value shall not be
inspected
![Page 18: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/18.jpg)
![Page 19: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/19.jpg)
Obligations Of Exporter Members
• Non-discrimination
• Transparency
• Technical Assistance
![Page 20: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/20.jpg)
![Page 21: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/21.jpg)
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
![Page 22: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/22.jpg)
![Page 23: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/23.jpg)
Notification
• Submit to the Secretariat
copies of Laws & Regulations
• No changes in
laws/regulations
![Page 24: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/24.jpg)
![Page 25: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/25.jpg)
Review • Review to be done at end of
2nd year
• Every 3 years after entry
into force
• Ministerial Conference to
review provisions, operation
& implementation
![Page 26: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/26.jpg)
![Page 27: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/27.jpg)
Consultation & Dispute Settlement
• Article 7
Consultation
• Article 8
Dispute Settlement
• Article 9
Final Provisions requires
![Page 28: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/28.jpg)
Conclusion
![Page 29: Pre-shipment Inspection WTO Prepared by Abubakar Bhatti](https://reader033.vdocuments.mx/reader033/viewer/2022042602/55a64d691a28abe7028b4818/html5/thumbnails/29.jpg)