International-Business-Dr-R-Chandran-E-book

AGREEMENTS OBJECTIVE OF
AGREEMENT
1.a.
Agreement on
Implementation
of Article VII of
GATT (94)
(valuation of
Goods)
1.b.
Agreement on
Preshipment
Inspection
(PSI)
Requires countries
to follow the
agreement for
valuation of
imports to check
arbitrary decisions
Customs
To check arbitrary
ways of PSI
companies in
valuation of goods
(Around 30
countries use them)
163
International Business- Dr. R. Chandran
IMPACT ON
INDIAN
POLICY/ LAWS
India has amended
its law in
conformity with
agreement by
notification 26
(NT) 24.04.95;
Customs Act.
(India does not use
service of PSI
companies)
BUSINESS
IMPLICATIONS
international
vision will
survive and grow
(in most of the
product
categories)
• India has
amended its law
in conformity
with agreement
by notification 26
(NT) 24.05.95;
Customs Act.
• Importers and
exporters to
benefit from
more transparent
regime. While
rejecting the
value given by
importer,
Customs will
have to give
reasons in
writing. Clear
guidelines
provided for
computing value.
• Indian companies
exporting to the
countries using
PSI companies
(such as SGS,
Bureau Veritas
etc) to benefit
Only for Private Circulation