The
Agreement applies to preshipment inspection (PSI) mandated
by an importing government Member of the WTO where such
inspection is carried out on the territory of an exporter
Member. The importing government Member is referred to as
the "user Member". The Preamble refers only to
developing countries as users of PSI.
The
Agreement sets out an international framework of rights
and obligations of exporter Members and user Members. It
recognizes that the principles and obligations of the GATT
1994 apply to those activities of PSI entities that are
mandated by governments Members of the WTO. The provisions
of the Agreement aim to ensure that PSI does not create
difficulties for traders beyond what is strictly necessary
to carry out the inspection, setting out the parameters
within which PSI agencies mandated by one government can
operate on the territory of other governments.
The
Agreement includes provisions affecting user Member policies
on
-
non-discrimination and national treatment
-
publication of laws and regulations relating to PSI
-
ease of access by exporters to all information necessary
to enable them to comply with the PSI requirements of the
importing country
-
avoidance of unnecessary delays due to inspection
-
protection of confidential business information
-
standards to be used in quality and quantity inspections
-
avoidance of conflicts of interest
Exporter
governments are also bound by obligations relating to transparency
and non-discrimination, as well as an obligation to provide
technical assistance on request, on a bilateral, plurilateral
or multilateral basis.
For
the price verification element of PSI, other than in connection
with customs valuation, the Agreement stipulates that:
-
only prices providing a valid basis of comparison may be
used
-
the price of goods offered for export to countries other
than the importing country mandating the inspection will
not be used to arbitrarily impose the lowest price
-
the selling price in the country of importation will not
be used for price verification purposes nor will the price
of goods for export from a country other than the country
of exportation
For
price verification carried out for customs valuation purposes,
the obligations of user Members are those which they have
accepted in the GATT 1994 and the other Multilateral Trade
Agreements included in Annex 1A of the Agreement Establishing
the WTO.
The
Agreement establishes a three-tier system for dispute settlement.
-
an internal procedure within the PSI agencies considers
grievances raised by exporters
-
an independent review procedure administered jointly by
an organization representing PSI agencies and an organization
representing exporters. The objective is to provide a speedy
resolution of disputes arising between an exporter and a
PSI agency should the internal review fail to do so. The
results of such independent review are binding on the exporter
and the PSI agency.
-
the normal WTO dispute settlement procedures for the resolution
of disputes between governments relating to the operation
of the PSI Agreement.
