Phasing out PSI: WCO thinking and recommendations

Article 10.5 of the Trade Facilitation Agreement (TFA), concluded by the World Trade Organization (WTO), provides that WTO Members shall not require the use of pre-shipment inspections in relation to tariff classification and Customs valuation, and encourages Members not to introduce or apply new requirements regarding their use. This article presents some thinking and recommendations on pre-shipment inspection (PSI) service contracts and explains how the WCO can support national Customs administrations to reduce their reliance on inspection services or even terminate existing contracts.