Pre-Shipment Inspection
Presented by:
Waqas Liaqat
Abubakar Aziz
Syeda Itrat Rizvi
Muhammad Ali Raza
Muhammad Khurra...
PRESHIPMENT
INSPECTION
Pre-shipment inspection
(PSI) activities" are all
activities relating to
the verification of t...
WHY PSI
• Companies provides pre-shipment
inspection services to governments as a
way of protecting import revenues for...
HOW IT WORKS
• A physical inspection of goods is carried
out pre-shipping, in the country of export,
establishing the e...
BENEFITS
• By using our services, you will
benefit from:
• Certification by an internationally
recognized Conformity A...
 The term “user Member” means a Member of which the government or any
government body contracts for or mandates the use ...
Non –discrimination
User Members shall ensure that PSI
activities:
Objective
Applied on equal basis
Uniform perfor...
In the exporting country/
manufacturing country:
Inspection Activities
Issuance of “Clean Report
of Findings” or a “...
Transparency
Protection of
Confidential Information
Ensure that PSI entities:
Maintain procedures for treating
information as con...
Conflict of Interest
User members to ensure that PSI
entities maintain procedures to
avoid conflict of interest
Delays
User members to ensure that psi
entities avoid unreasonable delays in
inspection of shipments; once fixed,
date...
Prevent over/under invoicing & Fraud.
For comparison verification based on export prices of
similar goods from:
 same ...
Aspects not to be
used for verification
 selling price of such goods
produced in importing country
 price in another...
Appeals Procedure
PSI entities shall establish procedures to
consider grievances raised by exporters as per
guidelines:...
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 f...
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
rev...
Consultation & Dispute Settlement
• Article 7
Consultation
• Article 8
Dispute Settlement
• Article 9
Final Provisio...
Conclusion
Pre-shipment Inspection WTO Prepared by Abubakar Bhatti
Pre-shipment Inspection WTO Prepared by Abubakar Bhatti
Pre-shipment Inspection WTO Prepared by Abubakar Bhatti
Pre-shipment Inspection WTO Prepared by Abubakar Bhatti
Pre-shipment Inspection WTO Prepared by Abubakar Bhatti
Pre-shipment Inspection WTO Prepared by Abubakar Bhatti
Pre-shipment Inspection WTO Prepared by Abubakar Bhatti
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Pre-shipment Inspection WTO Prepared by Abubakar Bhatti

Pre-Shipment Inspection
Published on: Mar 4, 2016
Published in: Travel      
Source: www.slideshare.net


Transcripts - Pre-shipment Inspection WTO Prepared by Abubakar Bhatti

  • 1. Pre-Shipment Inspection Presented by: Waqas Liaqat Abubakar Aziz Syeda Itrat Rizvi Muhammad Ali Raza Muhammad Khurram
  • 2. PRESHIPMENT INSPECTION Pre-shipment inspection (PSI) activities" are all activities relating to the verification of the quality, the quantity, the price, including currency exchange rate and financial terms and/or the Customs valuation and classification of goods to be exported to the territory of the User Government.
  • 3. WHY PSI • Companies provides pre-shipment inspection services to governments as a way of protecting import revenues for themselves and their citizens. • Governments implement PSI programmes to ensure that imports comply with their regulations. Non-compliance with these regulations can result in: • The loss of valuable duty and tax revenue • The loss of foreign exchange reserves (in countries where exchange controls exist) • The importation of substandard or prohibited goods
  • 4. HOW IT WORKS • A physical inspection of goods is carried out pre-shipping, in the country of export, establishing the exact nature of the goods. • The invoice and other documents are then scrutinised, and an accurate valuation, and customs tariff code, are assigned. These are used, in conjunction with the client country's published duty rates, to calculate the correct duties and taxes payable. • A certificate is issued to the importer. This is used to substantiate the payment of full duty, prior to clearing the goods. • The actual duty collected is compared with the certificates, and any shortages can be investigated and corrected.
  • 5. BENEFITS • By using our services, you will benefit from: • Certification by an internationally recognized Conformity Assessment body. • Assurance that your products are compliant with standards and technical regulations. • Streamline the customs clearance. • Consistent with the rules, regulations of the import countries.
  • 6.  The term “user Member” means a Member of which the government or any government body contracts for or mandates the use of preshipment inspection activities.  The term “preshipment inspection entity” is any entity contracted or mandated by a Member to carry out preshipment inspection activities.  "User Government" is a government or government body which contracts for or mandates the use of preshipment inspection activities.  "Preshipment inspection (PSI) activities" are all activities relating to the verification of the quality, the quantity, the price, including currency exchange rate and financial terms and/or the Customs valuation and classification of goods to be exported to the territory of the User Government.  "IFIA PSI Member" is a company, performing preshipment inspection activities contracted or mandated by a User Government, which is a member of IFIA.  "External Expert" is an individual engaged to provide additional resources or expertise.  "Subcontractor" is another company which is contracted to provide PSI activities in a particular geographical area or field of expertise. TERMS
  • 7. Non –discrimination User Members shall ensure that PSI activities: Objective Applied on equal basis Uniform performance of inspection Governmental Requirements According to the laws, regulations & requirements Paragraph 4 of article III of GATT 1994
  • 8. In the exporting country/ manufacturing country: Inspection Activities Issuance of “Clean Report of Findings” or a “Note of non-issuance” Standard Site of Inspection International Standards National Standards
  • 9. Transparency
  • 10. Protection of Confidential Information Ensure that PSI entities: Maintain procedures for treating information as confidential Doesn’t share to 3rd Party except Govt. Certain information not to be asked from exporters…..
  • 11. Conflict of Interest User members to ensure that PSI entities maintain procedures to avoid conflict of interest
  • 12. 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
  • 13. 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 fraudation charges only w.r.t. exporting country Price Verification
  • 14. Aspects not to be used for verification  selling price of such goods produced in importing country  price in another country, cost of production arbitrary or fictitious prices or values
  • 15. Appeals Procedure PSI entities shall establish procedures to consider grievances raised by exporters as per guidelines: Designate officials to consider & decide on grievances Exporters to give in writing to designated officers the nature of grievance, the facts & suggested solution Designated official to give a sympathetic consideration & a quick decision
  • 16. Derogation Consignments of value less than a minimum value shall not be inspected
  • 17. Obligations Of Exporter Members • Non-discrimination • Transparency • Technical Assistance
  • 18. 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
  • 19. Notification • Submit to the Secretariat copies of Laws & Regulations • No changes in laws/regulations
  • 20. Review • Review to be done at end of 2nd year • Every 3 years after entry into force • Ministerial Conference to review provisions, operation & implementation
  • 21. Consultation & Dispute Settlement • Article 7 Consultation • Article 8 Dispute Settlement • Article 9 Final Provisions requires
  • 22. Conclusion

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