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Pre-shipment Inspection (PSI) Guidefor Exporters

In Accordance withArticle 2.6.1 of IFIA Code of Practice 1001:2002(E)Overseas Merchandise Inspection Co., Ltd.
15-6, Nihonbashi Kabuto-cho, Chuo-ku, 103-0026
Tokyo, Japan
Tel: (03) 3669-5181 Fax: (03) 3669-5190===================================================================================

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===================================================================================INDEX:GUIDELINES FOR EXPORTERS

Introduction

List of Abbreviations

PSI Procedures
Physical Inspection
Price Analysis and HS Code Classification
Issuance of Report of Findings

Exporter’s Appeal
Internal Appeal Procedures
Independent Review Procedures============================================================================

Link destination
Independent Review Procedures(Move to WTO (World Trade Organization) web site)
List of the Companies of OMIC Group.
(Move to OMIC web site)
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===================================================================================GUIDELINES FOR EXPORTERS
Introduction: These guidelines have been provided by Overseas Merchandise Inspection Co., Ltd.
(OMIC) for the purpose to advise exporters and related parties who intend to export goods
under the WTO PSI Program.
The exporter who wishes a per-shipment inspection (WTO PSI) to be carried out by OMIC on“Quality”, “Quantity”, “Price Verification” and “HS code Classification” may request it to the OMIC inthe country of export. , for which please visit List of the Companies of OMIC Group.
These guidelines comply with both the provisions of the Multilateral Agreement on Pre-shipment
Inspection of the World Trade Organization and the Code of Practice for government mandated PSI
services as produced by the International Federation of Inspection Agencies (IFIA).
IFIA and CEOC was merged and changed name to TIC Council.
OMIC is not only a member of the TIC Council, but also a member of the Government Services
Committee of the TIC Council.

ABBREVIATIONS:
ACV:
CRF:
DR:
FCL:
HS:
IFIA:
I.O.:
PSI:
WTO:

WTO Agreement on Customs Valuation
Clean Report of Findings
Discrepancy Report
Full Container Load
Harmonized System
International Federation of Inspection Agencies
Inspection Order
Pre-shipment Inspection
World Trade Organization

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Physical Inspection: The OMIC Office in the country of export carries out, on the date mutually agreed, thequality, quantity and packing inspection and review of the test / analysis certificate, where applicable.
The exporter is kindly requested to make arrangements at the exporter’s own cost for presentation,
handling, testing, sampling, unpacking and re-packing as deemed necessary by the OMIC inspector.
Usually, the container of FCL (Full Container Load) has to be sealed by the inspector after completionof stuffing, thus the inspection has to be carried out at the time of the stuffing of the FCL container.
When the goods are found, during the inspection, to be defective and/or discrepant from therequirements and specifications of the contract, the exporter or supplier is requested to rectify them atthe presence of the inspector. Failure to do it on the same day of the inspection under the inspector’s
witness may cause re-inspection with the re-inspection fees to be paid by the exporter or rejection withthe issuance of the Discrepancy Report (DR) instead of the Clean Report of Findings (CRF).

Price Verification and HS Code Classification: Based on the physicalidentification of the goods and obtainable price information, the OMIC Office in charge carries out thevalue assessment of the goods for the customs purposes on the basis of the requirements of the “WTO
Agreement on Customs Valuation“(ACV), which is same as the “Agreement on Implementation ofArticle VII of the General Agreement on Tariffs and Trade 1994”.
The OMIC Office, which carries out the PSI in the country of export, classifies the HS codes of thegoods, on the basis of the physical identification obtained through the inspection, in accordance withthe latest Harmonized System Tariff Classification Code as the one used by the Customs Authority. The
classified HS codes of the goods inspected are reported as the opinion of the Office to the Customs
Authority for their finalization.

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===================================================================================Issuance of Report of Findings: Following to the satisfactory inspection results and upon receipt of theexporter’s final settlement invoice concerning the goods, the shipping documents and information
deemed necessary by the OMIC Office, the OMIC Office issues original Clean Report of Findings(CRF) printed and signed on the OMIC’s security papers to the parties concerned.
The OMIC Office issues “Discrepancy Report (DR)” to all parties concerned, in such cases that thephysical inspection results are unsatisfactory and the discrepancies are not rectified by the exporter or
not accepted by the importer or where applicable by the Authority; or the OMIC Office does notreceive the final documents although the inspection results are satisfactory.

Exporter’s Appeal:(1) Exporters with any complaints concerning PSI activities may contact the appropriate department
manager of the OMIC office in the country of export giving details of the cases.
(2) The appropriate department manager who received a complaint is responsible to undertake toinvestigate it expeditiously.
(3) If the exporter is not satisfied with the response from the OMIC office, the exporter may proceed to anAppeal in accordance with the following procedures.
(4) Exporters who have grievance concerning PSI activities, which have not been resolved by discussion
with the appropriate department manage of the OMIC office under the complaints procedure mentionedabove, may appeal to the senior management of the OMIC office by completing and submitting a“Preshipment Inspection Internal Appeal Form” giving details of the case. The “PSI Internal AppealForm” and detailed procedures are available from the Internal Appeal Procedures.
(5) Independent Review Procedures: When the exporters cannot resolve the case by the procedures
mentioned above within the reasonable time flame, the exporters may request for an independent
review to the Independent Entity set up under Article 4 “Independent Review Procedures”, of the WTO
Agreement on Preshipment Inspection, and further details are available from the which are issued bythe WTO Secretariat.

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INTERNAL APPEALS TO PSI CONTROLLING OFFICES OF OMIC:
Procedures:
Overseas Merchandise Inspection Co., Ltd. (OMIC) designate one or more officials, at each PSI Controlling Office ofOMIC in the country of export, who are available during normal business hours in each city or port in which they
maintain a pre-shipment inspection administrative office to receive and give sympathetic consideration to, and renderdecisions on, exporters complaints or appeals which shall be carried out in accordance with the procedures mentioned
below For the details of OMIC Offices., please visit the List of Companies of OMIC Group.
1.

Complaints to PSI Controlling Offices of OMIC :(i)

In the first instance, exporters with any complaints concerning pre-shipment inspection activities are requested tocontact the appropriate Department Manager of the OMIC office in the country of export giving details of thecase.

(ii) The Office in the country of export undertakes to investigate the complaint expeditiously.
(iii) If the exporter is not satisfied with the response from the Office, the exporter may proceed to an “Appeal” inaccordance with the procedures of Article 2 below.
2.

Appeals to OMIC :(i)

Exporters who have grievances concerning pre-shipment inspection activities, which have not been resolved bydiscussion with the appropriate department manager of the Office, under the complaints procedure of Article 1above, may appeal to the senior management of the Office or the PMD of OMIC Headquarters, Tokyo bycompleting and submitting a “Preshipment Inspection Internal Appeal Form” giving details of the case. This formshall be issued by the OMIC Office based on Internal Appeal Form, attached hereto, which also takes into
consideration the requirements of the WTO Agreement on Preshipment Inspection. The exporter shall send thecompleted form to the Senior Manager(s) of the appropriate OMIC Office or the PMD of OMIC Headquarters.

(ii) The designated Senior Manager of OMIC Office or the PMD of OMIC Headquarters, Tokyo undertakes toinvestigate the dispute and responds to the exporter in writing, normally within two working days of receipt of afully completed “Preshipment Inspection Appeal Form”, by either (a) giving the result of the Appeal, with detailed
explanations, or (b) advising that further investigation is required and that the result will follow as soon as possible
but not later than within 10 days of receipt of the Appeal. For disputes on price analysis the Result of the Appeal
should set forth the basis of the opinion of OMIC Office by reference to the specific applicable elements of theprice analysis criteria.
3.

Further Detailed Appeal Procedures:
Details of the procedures are made available to exporters in accordance with Article
2.6 and 2.7 of the IFIA Code of Practice.
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OVERSEAS MERCHANDISE INSPECTION CO., LTD.
Pre-shipment Inspection Services Page: 2

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