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Some Problems with PSI
Some of the more serious problems that might undermine the PSI process and deprive the government of needed revenue are: - Rubber-stamping of importers' declarations. This practice consists of issuing a Clean Report of Findings (CRF) based on the importer-supplied data without actually inspecting the merchandise or performing the corresponding valuation. - Biased valuation information. PSI companies confirm the price of goods by inquiring from the supplier if the price shown in the pro-forma or final invoice, presented by the importer, is correct. This method fails to reflect any rebates agreed upon between supplier and importer, or price changes caused by purchasing through an intermediary. - Deficiencies in inspections, valuation or reporting due to technical and clerical errors or, worse, to intrinsic professional and organizational deficiencies.
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