Common use of Audit and verification Clause in Contracts

Audit and verification. 1. In order to maintain confidence in the effective implementation of the provisions of this Chapter, each Party has the right to carry out an audit or verification, or both, of all or part of the other Party's control system. Audits shall follow a systems based approach which relies on the examination of a sample of system procedures, documents or records and, where required, a selection of sites. 2. The nature and frequency of audits and verifications shall be determined by the importing Party taking into account the inherent risks of the product the track record of past import checks and other available information, such as audits and inspections undertaken by the competent authority of the exporting party. 3. For the purpose of paragraph 1, the importing Part shall endeavour to rely on audits and verifications undertaken by the competent authority of the exporting Party. 4. Audits and verifications shall be conducted in accordance with [Annex X] and in line with internationally agreed Guidelines2. 5. Verification procedures may include, but are not limited to: a) an assessment of all or part of the exporting Party's total control programme, including, where appropriate, reviews of the exporting Party's inspection and audit programmes, and b) on-site checks and inspections of a selection of sites within the scope of the audit. 6. For the European Union, the European Commission will carry out the verification procedures provided for in paragraph 1. For Mexico, [ …… ] shall facilitate the performance of these verification procedures by the Commission. 7. For Mexcico [ …. ] will carry out the verification procedures provided for in paragraph 1. The European Union shall facilitate the performance of these verification procedures by those agencies. 8. Any measures taken as a consequence of audits and verifications shall be proportionate to risks identified. If so requested, technical consultations regarding the situation shall be held in accordance with [Article 15 Technical Consultation]. The Parties shall consider any information provided through such consultations. 9. Either Party may publish the results and conclusions of its verification procedures. 10. Each Party shall bear its own costs associated with the audit or verification. ]