RESTRICTED
WORLD TRADE G/PSI/WP/W/16
6March 1998
ORGANIZATION(98-0903)
Original: English Working Party onPreshipment Inspection
COMMUNICATION FROM SWITZERLAND
Thefollowing communication, dated 2March 1998, hasbeenreceived from thePermanent
Mission ofSwitzerland.
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Inorder tofacilitate thework oftheWorking Party onPreshipment Inspection in1998, we
arepleased tosendyouenclosed adraftmodel agreement onpreshipment inspection, asenvisaged
inourcommunication (G/PSI/WP/W/9) dated 31July1997. Thisproposal isbased ontheAgreement
onPSIandtakes intoaccount several recommendations contained inlastyear'sfinalreport ofthe
Working Party.
Model Agreement onPreshipment Inspection
Proposal bySwitzerland
1. General provisions
1.1 Thepresent Agreement isconcluded between the...(Government) andthe(PSICompany)
(hereinafter referred toas"Contracting Parties") under theprinciples andobligations ofthe
WTO Agreement onPreshipment Inspection (hereinafter referred toasthe"PSIAgreement
(WTO)").
1.2 Itwillenter intoforce after60daysinorder toallow forsufficient timetoinform exporters
andimporters.
1.3 The(PSI Company) shall abide byapplicable laws, regulations orrequirements ofthe
(Government) inaccordance withtheprovisions ofthePSIAgreement (WTO).
1.4 Inimplementing thepresent Agreement the(Government) willapply therelevant provisions
ofthePSIAgreement (WTO).
1.5 The(PSICompany) undertakes theobligation toperform preshipment activities inconformity
withthePSIAgreement (WTO).
2. Scope ofinspection
2.1 ThePSIactivities performed bythe(PSICompany) mayinclude thefollowing services:
(a) quality andquantity inspections, inaccordance withrelevant standards;G/PSI/WP/W/16
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(b) price verification, including technical advice forpurposes ofcustoms valuation, in
accordance withArticle 2.20ofthePSIAgreement (WTO);
(c) customs classification.
3. Siteofinspection
3.1 Allpreshipment activities, including theissuance ofaClean Report ofFindings (CRF) oran
advice ofnon-issuance ofCRF, shallbeperformed inthecustoms territory fromwhich thegoods are
supplied or,iftheinspection cannot becarried outinthatcustoms territory given thecomplex nature
oftheproducts involved, orifbothparties agree, inthecustoms territory inwhich thegoods are
manufactured.
4. Transparency/information
4.1 The(PSICompany) shallmake available toexporters inaconvenient manner allnecessary
information referred toinArticle 2,para. 6ofthePSIAgreement (WTO) aswellasreferences
ofneworamended lawsorregulations relating topreshipment inspection activities received
from (Government) .
4.2 The(Government) undertakes toprovide the(PSICompany) withallrelated laws, regulations
andrequirements 60dayspriortothecommencement ofthePSIprogramme. Itwillalsoinform
the(PSICompany) immediately ofanyamendments thereafter.
5. Confidentiality
5.1 The(PSICompany) shall treatallinformation received inthecourse ofthepreshipment
inspection asbusiness confidential totheextent thatsuchinformation isnotalready published,
generally available tothirdparties, orotherwise inthepublic domain. The(PSICompany)
shallnotdivulge confidential business information toanythirdparty.
5.2 Inpursuance ofthisprovision the(PSICompany) shallestablish adequate security measures
relating totheiroffices andemployees.
5.3 Notwithstanding paragraph 1the(PSICompany) mayshare confidential business information
withthe(Government) ,butonlytotheextent thatsuchinformation iscustomarily required
forletters ofcredit orother forms ofpayment orforcustoms, import licensing orexchange
control purposes.
5.4 The(PSICompany) shallnotrequest exporters toprovide information regarding:
(i) manufacturingdatarelatedtopatented,licensedorundisclosedprocesses,ortoprocesses
forwhich apatent ispending;
(ii) unpublished technical dataother thandatanecessary todemonstrate compliance with
technical regulations orstandards;
(iii) internal pricing, including manufacturing costs;
(iv) profit levels;G/PSI/WP/W/16
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(v) theterms ofcontracts between exporters andtheirsuppliers unless itisnototherwise
possible forthe(PSICompany) toconduct theinspection inquestion. Insuchcases,
the(PSICompany) shallonlyrequest theinformation necessary forthispurpose.
6. Conflicts ofinterest
6.1 The(PSICompany) confirms thatitmaintains procedures toavoid anyconflicts ofinterest
asdefined inArticle 2.14ofthePSIAgreement (WTO). The(PSICompany) shallinform
the(Government) onthese internal procedures andonanyamendments thereto.
7. Technical advice concerning customs valuation principles
7.1 Price verification bythe(PSICompany) forcustoms purposes shallbelimited totheprovision
oftechnical advice tofacilitate thedetermination ofcustoms value bythe(Government) .
7.2 When forming anopinion ofavalue forcustoms purposes the(PSICompany) shallnotrequire
theseller toamend theprice inthecommercial invoice forpayment purposes.
7.3 When providing technical advice oncustoms valuation, the(PSICompany) shallusethecustoms
valuation methodology asnotified bythe(Government) totheWTO. The(PSICompany) shall
inform exporters ofthemethodology applied.
7.4 The(Government) encourages the(PSICompany) toutilize electronic means forpurposes of
providing required information toexporters andimporters.
8. Standards
8.1 Quantity andquality inspections shallbeperformed inaccordance withthestandards defined
bytheseller andthebuyer inthepurchase agreement or,intheabsence ofsuchstandards,
inaccordance withrelevant international standards andpractice.
9. Appeals andindependent review procedures
9.1 Incaseofadispute between anexporter andthe(PSICompany) ,theparties tothedispute
shall abide bytheprocedures setforth inArticle 2.21(Appeals Procedures) andArticle 4
(Independent Review Procedures) ofthePSIAgreement (WTO).
9.2 The(PSICompany) shall establish procedures toreceive, consider andrender decisions
concerning grievances raised byexporters, andshall make information concerning such
procedures available toexporters inaccordance withtheprovisions ofArticle 2.6-7 ofthePSI
Agreement (WTO). Theprocedures shall bedeveloped andmaintained according tothe
guidelines setforth inparagraphs 3-6below.
9.3 The(PSICompany) shalldesignate oneormore officials whoshallbeavailable during normal
businesshoursineachcityorportinwhichtheymaintainapreshipmentinspectionadministrative
office toreceive andgivesympathetic considerations to,andrender decisions on,exporters '
complaints orappeals which should becarried outinaccordance withtheprocedures of
paragraphs 4and5below.G/PSI/WP/W/16
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9.4 Complaints tothe(PSICompany) :
(i) Inthefirstinstance, exporters withanycomplaints concerning preshipment inspection
activities should berequested tocontact theappropriate Department Manager ofthe
(PSICompany) giving details ofthecase.
(ii) The(PSICompany) shallundertake toinvestigate thecomplaint expeditiously.
(iii) Iftheexporter isnotsatisfied withtheresponse fromthe(PSICompany) ,theexporter
mayproceed toanAppeal inaccordance withtheprocedures ofparagraph 5below.
9.5 Appeals tothe(PSICompany) :
(i) Exporters having grievances concerning preshipment inspection activities, which have
notbeenresolved bydiscussion withappropriate Department Manager ofthe(PSI
Company) ,mayappeal tothe(PSICompany) 'ssenior management.
(ii) The(PSICompany) 'sdesignated Senior Manager should undertake toinvestigate the
dispute andrespond totheexporter, normally within twoworking daysofreceipt of
theAppeal, byeither (a)giving theresult oftheAppeal or(b)advising thatfurther
investigation isrequired andthattheresult willfollow assoonaspossible.
9.6 Details oftheprocedure ofparagraphs 4and5above willbemade available toexporters by
the(PSICompany) .
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