Pre-Shipment Inspection, Pre-Shipment Certification

Pre-Shipment Inspection is of Conformity Verification. This Program is intended to provide safety for citizens of Lebanon and improve environmental health protection. The pre-shipment verification program facilitates import customs transactions, minimizes further inspection and testing on arrival, thereby reducing the overall cost, possible delay of customs release and risk to re-export due to non-conformity of the goods. In order to confirm that products conform to the relevant standards, Exporters can provide copies of certificates or test reports that show compliance evidence.

Certificates or test reports issued by an accredited organization or laboratory are usually accepted. The Agreement applies to pre shipment inspection (PSI) mandated by an importing government Member where such inspection is carried out on the territory of an exporter Member. The importing government Member is referred to as the "user Member". The Preamble refers only to developing co untries as users of PSI. Pre-Shipment inspection has been made mandatory for all importable goods except those exempted by the government from the programme.
The PSI rules require that PSI agents verify the Tax Identification Number (TIN) and the VAT Registration Number (BIN) of the importer before processing an import document. If this verification is effective, then there should be improvements in VAT collections at the local level and income tax collections because of PSI. Pre-shipment inspection of goods is carried out in the country of supply to ensure that their quality and quantity meets with contractual requirements.

User Members shall ensure that pre shipment inspection activities are carried out in a non-discriminatory manner, that the procedures and criteria employed in the conduct of these activities are objective and are applied on an equal basis to all exporters affected by such activities. They shall ensure uniform performance of inspection by all the inspectors of the pre shipment inspection entities contracted or mandated by them.

Mindful that such programmes must be carried out wi thout giving rise to unnecessary delays or unequal treatment; Noting that this inspection is by definition carried out on the territory of exporter Members.

Following are the advantages of Pre-Shipment Inspection certification: - Enhancement of Import Duty Revenue - Anti-dumping and population protection - GATT valuation code (GVC) compliance - Minimizing Foreign Exchange Expenditure - Detects Illegal Imports - Technical Assistance with Customs - Provision of Import Statistics - Protecting Indigenous Industry of PSI Country - Producing trade statistics - Deters capital flight - Trade facilitation - Selectivity

Pre-Shipment Inspection (PSI) is an economic programme for the monitoring of imports into developing countries. It has a positive impact on the national budget, terms of trade, balance of payments and general economic development.