WTO members review preshipment inspection challenges and customs valuation notifications

WTO members examined a number of questions related to preshipment inspection (PSI) at an 8 June meeting of the Committee on Customs Valuation. Drawing on recent private sector input and member experiences, the discussions focused on future Committee work related to PSI and how PSI issues should continue to be addressed. The Committee also examined 34 customs valuation notifications submitted by members for review and a trade concern raised by one member.

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• Customs valuation

Preshipment inspection refers to the practice by governments of employing specialized private companies to check shipment details - essentially price, quantity and quality - of imported goods. �The WTO's Preshipment Inspection Agreement recognizes that WTO principles and obligations apply to preshipment inspection agencies mandated by governments and obliges governments using such services to respect principles such as non-discrimination, transparency, and protection of confidential business information.

Members heard a report from the Committee Chair, Ms Judith Kuo (Chinese Taipei), on an informal session on 20 April which included presentations from private sector speakers on issues and challenges faced with respect to PSI requirements. The session also included presentations from Cambodia on its implementation of PSI arrangements and from Pakistan on its Preshipment Inspection Administration.� The WTO Secretariat also provided a historic overview of the PSI Agreement and the Independent Entity, which was set up under the PSI Agreement to help resolve disputes between preshipment inspection agencies and exporters.

The report generated an engaged discussion among delegations in attendance about possible follow-up actions.� Several members welcomed the report and requested follow-up on issues such as updating PSI notifications and modernising the Independent Entity.� A suggestion was also made for thematic sessions to hear from inspection companies and business representatives on current PSI arrangements.�

These suggestions are expected to be taken up in informal consultations with the next Committee Chair.

Notifications

The Committee reviewed 34 notifications pertaining to the customs valuation legislation of members, including the first notification from C�te d'Ivoire. The Committee concluded reviews of the customs valuation legislation of five members (Belize, The Gambia, Moldova, Nepal and Paraguay).�

The Chair noted that 121 members had notified their national legislation on customs valuation, and that 95 members had provided responses to the�checklist of issues regarding implementation of the Customs Valuation Agreement (CVA).

World Customs Organization, International Chamber of Commerce

As part of the standing agenda item of the meeting, a representative from the World Customs Organization (WCO) reported on latest developments at the WCO's Technical Committee on Customs Valuation, including questions posed by members in their implementation of the CVA. The representative also referred to presentations by the International Chamber of Commerce (ICC) on circular economy, carbon credits, and e-commerce fulfilment centres.�

Trade concern

For the second time, Indonesia raised a concern regarding Mexico's implementation of estimated prices for customs valuation purposes.� Mexico replied that the use of estimated prices was used for cracking down on import tax evasion and not to determine the customs value of imported products.�

Next meeting

The next formal meeting of the Committee will take place on 23 November.

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