RESTRICTED
WORLD TRADE G/PSI/WP/W/12
6October 1997
ORGANIZATION(97-4215)
Original: spanish Working Party onPreshipment Inspection
PERUVIAN EXPERIENCE WITH THE AGREEMENT ONPRESHIPMENT INSPECTION
Replies totheQuestions Raised attheMeetings on13and18June1997
1. Question (a):IsthePSIsystem inPeru exclusively funded through contributions from
importers?
Reply: Yes. Asmentioned inthesubmission onnational experience, domestic importers hire
theservices ofthesupervision companies orinspection entities, forwhich theypayafeeof1percent
ofthef.o.b. value ofthemerchandise inspected. Accordingly, inPerutheusersoftheinspection system
arethedomestic importers.
2. Question (b): Provide more information about thesystematic procedure forverifying
inspection certificates andabout thekinds ofprocedures thatthisentails.
Reply: Inspection companies determine thevalue ofthegoods using thenormal competition
price method (Ministerial Resolution No.243-92-EF/66), which isavaluation method contained in
theBrussels Definition ofValue. Thismethod isbeing usedduring thetransition totheadoption of
theGATT Customs Valuation Code, asatpresent Peruhasinvoked thereservation fordelaying its
application forafive-year period. Nevertheless, while using thenormal competition price method
theaimistoapply thetransaction value totheextent possible.
Inapplyingthenormalcompetitionmethod,theinspectioncompaniesdeterminethevalueusually
applied incommercial transactions under conditions offreecompetition, comparing forthispurpose
theprice ofthegoods being valued withthatofother identical goods soldbythesame seller orby
other sellers ofthesame country.
Theprice comparison ismade bytheinspection companies taking intoaccount thequality,
quantity andclassofgoods. Forthese purposes, theyconsider themarket prices ofthese goods in
thecountries oforigin and/or provenance, taking intoaccount theamount ofthecontract.
Thef.o.b. value given bytheinspection company intheinspection certificate must beused
inthecustoms declaration andserves asthebasis forcalculating thecorresponding taxes.
Physical identification iscarried outof15percentofthetotalgoods, while adocumentary
identification ismade oftheremaining 85percent, onthebasis oftheprinciple ofpresumption of
truth.
During thephysical identification ofthegoods, thecustoms inspector maymake comments
onthevalue, quantity andtariff classification oftheinspected goods, anddetermine ahigher value,
adifferent tariff classification oracorrection oftheamount. Insuchcases, theinspection company
willhavecommitted anoffence punishable byafine.G/PSI/WP/W/12
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Inaddition, there isasubsequent random control ofimporters bythecustoms, prompted by
intelligence, accounting audits, denunciations byforeign trade operators, etc.
Responsibility fortheevaluation andcontrol ofdiscrepancies arising outofthecustoms controls
lieswiththeInspection Companies Control Division oftheNational Customs Inspectorate.
TheInspection Companies Control Division isaspecialized unitwhich isresponsible forthe
evaluationofinspectioncompanies,withthepowertoapplythecorrespondingsanctionsasaconsequence
ofdiscrepancy proceedings.
Discrepancies areameans ofevaluating thework ofinspection companies; discrepancies as
tovalue arethemost representative, amounting to30percentofthetotal.
Inconclusion, thePeruvian customs retain inthelastresort thepower todetermine thecustoms
value, tariff classification andquantity ofthegoods, either during theconcurrent control (physical
inspection ofthegoods) orduring thesubsequent control (fouryears ofrandom controls) ofthegoods.
Thus, theworkoftheinspection companies istechnical, while thecompetent national authorities
always havethelastword.
3. Questions (c)and(d):Provide more information withregard toclauses within thecontracts
referred tonational mediation services, andtheroleofthemultisectoral subcommission insuch
mediation. Isthenational mediation service identical withthemultisectoral subcommission?
Reply: Supreme Decree 067-95-EF establishes thattheagreement fortheprovision ofthe
inspection service (inother words, thecontract between theimporter andtheinspection company) must
includeaclauseunderwhichimportersmaysubmitdisputesforsettlementthroughthenationalarbitration
procedures.
TheNational Customs Inspectorate oftheNational Customs Administration actsasthetechnical
secretariat forthesubcommission.
Thework ofthesubcommission consists inhearing complaints byimporters andmaking the
corresponding recommendations.
Theprocedure established bythesubcommission begins withanimporter 'scomplaint against
aninspection company concerning non-performance ofitscontractual obligation.
Forthesubcommission toaccept acomplaint, importers must demonstrate thattheyhave
previously sought asettlement oftheirdispute together withtheinspection enterprises, andsubmit
allsupporting information anddocumentation.
Pursuant tothecomplaint submitted bytheimporters, themultisectoral commission makes
theappropriate recommendations.
Where negligence intheperformance bytheinspection company ofitscontractual obligations with
respect totheimporter isestablished, theformer willhavetoindemnify thelatter uptoamaximum
oftentimes thefeecharged forthetransaction, according tothedamage incurred.
Since thesubcommission wassetupinApril 1995, lessthantencomplaints havebeensubmitted
toitsofar.G/PSI/WP/W/12
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Itshould alsobementioned thatthissubcommission does notplayaroleinarbitration
proceedings between inspection companies andimporters, inwhich thetwoparties designate bycommon
consent thearbitrator theyconsider appropriate forthesettlement oftheirdispute. Accordingly,
arbitration isaprocedure inwhich customs donotintervene, andissubject totheprovisions ofthe
LawonArbitration.