User Members shall ensure that, in order to prevent over- and under-invoicing and fraud, preshipment inspection entities conduct price verification(4) according to the following guidelines:

(footnote original) 4 The obligations of user Members with respect to the services of preshipment inspection entities in connection with customs valuation shall be the obligations which they have accepted in GATT 1994 and the other Multilateral Trade Agreements included in Annex 1A of the WTO Agreement.

   Preshipment inspection entities shall only reject a contract price agreed between an exporter and an importer if they can        demonstrate that their findings of an unsatisfactory price are based on a verification process which is in conformity with the criteria        set out.

      The preshipment inspection entity shall base its price comparison for the verification of the export price on the price(s) of identical      or similar goods offered for export from the same country of exportation at or about the same time, under competitive and       comparable conditions of sale, in conformity with customary commercial practices set out. and net of any applicable standard         discounts. Such comparison shall be based on the following: Read More....