Agreement On Pre Shipment Inspection
Pre-delivery inspection at the WTO Links to the pre-shipment inspection section in the WTO WTO Agreement guide. 8. User members immediately publish all applicable laws and regulations regarding pre-shipment inspection activities, in a way that allows other governments and merchants to familiarize themselves with them. 3. Pre-shipment controls are all activities related to quality, quantity, price, including exchange rate and financial conditions, and/or customs classification of goods destined for export to the user member`s territory. The agreement provides that the controls are carried out on the date agreed by the exporter and the COMPANY PSI. It states that the exporter must receive from PSI — within 5 business days of the inspection — either a clean report of the results (which indicates the authorization of the lot), or a detailed written explanation of why such a report could not be issued. The agreement stipulates that the price review must be in line with the prescribed guidelines. PSI companies are not allowed to request certain business information and must ensure that confidential business information is not made public. Within the WTO, the due diligence agreement is the responsibility of the Customs Assessment Committee. (4) Users must ensure that quantitative and qualitative controls are carried out in accordance with the standards established by the seller and the buyer in the sales contract and that, in the absence of such standards, relevant international standards (2) apply. Noting that a number of members of developing countries use pre-shipment inspection, pre-shipment control is the practice of governments, particularly in developing and least developed countries, to accept private companies to verify shipping details such as the price, quantity and quality of goods before leaving the export country.
The agreement establishes an independent verification procedure (1) to resolve due diligence disputes between an exporter and an ISP agency. It is jointly managed by an independent body, with the participation of the International Federation of Inspection Agencies (IFIA), which represents inspection agencies, and the International Chamber of Commerce representing exporters. Governments use the services of pre-shipment control centres for many reasons, including to prevent capital flight or undervaluation of imports and to address deficiencies in customs and other administrative structures. 1. Exporters ensure that their pre-shipment inspection laws and regulations are enforced in a non-discriminatory manner. If you receive an order from a buyer in a country requiring pre-shipment inspections (PREShipment Inspections, PSI), you are generally informed that you need to contact a specific PSI company to arrange the inspection.