Transcript Pre-Shipment Inspection - Support Program for Economic and

Pre-Shipment Inspection:
Time to move on?
Andrew Allan
21.08.2014
Welcome!
Today is an opportunity to discuss the issue
ending Pre-Shipment Inspection requirements
for goods being imported into Mozambique.
We hope all present will contribute in a positive
manner, and that all leave with a clearer idea of
how to progress this issue.
What is PSI?
The WTO defines Pre-Shipment Inspection as:
Pre-shipment inspection 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 classification of goods to be
exported to the territory of the user Member.
What is the purpose of PSI?
What do you understand the purpose to be?
• Value?
• Classification?
• Quality?
Stated purpose of PSI in Mozambique?
“The scope of the INTERTEK program includes physical
inspection in the country of exporter to establish
compliance with the order specification and assessment
of price, customs classification and import duties
payable.” (From Intertek ‘Guidelines for Importers’ June 2014)
What does this mean:
• Order specification and assessment of price?
• Customs classification?
• Import duties payable
The “Positive List”
• Intertek applies PSI based on the ‘Positive List’ which
by - Ordem de Servicao 25 – DGA – 2013
• The Positive list covers a variety of products over 10
chapters of the HS Tariff:
– Chapter 2 - 02.07.12; 02.07.14; 02.07.25; 02.07.27; 02.07.33;
02.07.36. – Frozen meat and edible parts of poultry of position 01.05
– Chapter 11 - 11.02 – Flour
– Chapter 15 - 15.07; 15.08; 15.11; 15.12; 15.13; 15.15 – Cooking Oil
– Chapter 25 - 25.23 – Cement
– Chapters 28 & 29 - Chemical products
– Chapter 30 - Pharmaceutical products under HS codes: 30.01;30.02;
30.03; 30.04; 30.05 and 30.06
– Chapter 36 - 36.05 – Matches
– Chapter 40 - 40.11; 40.12 – New tyres and used tyres
– Chapter 87 - Vehicles - 87.01to 87.05, 87.11
Other Government Agencies and PSI
• The current Positive List suggests that value and
classification are not the main reason behind some of
the selected goods
• Are existing licensing procedures sufficient to control
some types of imports?
• When inspections are done for ‘quality’, what does
that mean?
• What standards are applied in Mozambique on
imported goods?
• Are agencies able to conduct these checks
themselves after importation?
Why change?
Around the world, countries are moving away from PSI, and its
‘sister’ Destination Inspection Services. Why? As administrations
develop and mature, the need for such services diminishes,
authorities are able to determine the necessary facts for
themselves.
Countries with inspection contracts
60
40
Countries with
inspection contracts
20
0
1980s
1990s
2000s
2014
PSI has been in Mozambique since 1998 – 16 years. In
that time, Mozambique has seen significant changes
and developments in the area of trade, and customs
has had significant support from international sources to
aid its development.
Do Mozambique customs still need PSI support, or has
it become an unnecessary technical barrier to trade?
Do other agencies need PSI as it currently exists?
What is a Conformity Assessment Program?
A government may contract (through INNOQ) with a
company such as Intertek, to ensure selected goods meet
International Standards (or National Standards if they differ).
Goods are tested and a ‘Certificate of Conformity’ issued
prior to export, this helps reduce the risk of substandard
products entering the market.
• Reduces the risk of unsafe products entering the market
• Helps domestic manufacturers by preventing poor quality/
sub-standard goods being ‘dumped’ on the market
WTO
WTO BALI Trade Facilitation Agreement of December
2013, Pre Shipment Inspection related guideline
Article 10 Formalities connected with importation and
exportation and transit.
5. Pre-shipment inspection
The new agreement bans the use of pre-shipment
inspections where this procedure is used to determine tariff
classification and customs valuation. Other types of preshipment inspection will, however, remain permitted although
Member States are encouraged not to extend the practice.
What do Trade think?
•
•
•
•
•
The additional costs
Why are some commodities under PSI and not others
Non-tariff barrier to trade
Does PSI benefit some traders
??
Transition
What is needed to move away from PSI?
• A Plan with a realistic timeframe
– To be developed by a steering committee of relevant border
agencies
– Tasks to be delegated to specific managers with defined
deadline
• Political support
– Identify a ‘Champion’ to press the transition forward at
ministerial level
• Focused training/ capacity development
– Identify specific areas of weakness e.g. valuation,
classification, Risk Management/ assessment and prioritize
these areas
• Adoption of Risk Management by all border agencies
as a priority
– Work together, with customs as the coordinator, for agency
risks to be addressed under the Risk Management module
of MCNet
Risk Management
LIKEHOOD
CONSEQUENCES
Ratings
Very
Low
Low
Medium
High
Very
High
NUMERICAL
RATING
RISK
RANKING
Very
Low
Low
1
2
4
7
11
1-5
Very Low
3
5
8
15
17
6 - 10
Low
Medium
6
9
16
18
20
11--15
Medium
High
10
12
19
21
23
16 - 20
High
Very
High
13
14
22
24
25
21 - 25
Very High
• Increase in agencies included under the Single Window
MCNet
• Specific tools to assist in the valuation of high risk goods
– E.g. Development of a vehicle valuation database
• Trade compliance <=> trade facilitation
– Compliant trade must be rewarded with increased
facilitation
– Non compliant trade should be subject to
meaningful penalties and increased levels
of scrutiny.
– Does the current penalty system work?
Obrigado!