Pre-Shipment Inspection


Pre-Shipment Inspection (PSI) is inspection of goods being exported or moved out of production facility prior to the shipment by a mandated Pre-Shipment Inspection (PSI) Agency. A PSI Agency carries out verification of quality, quantity, price (including currency exchange rate and financial terms) and customs classification for the destination country and then issues a Certificate with these details. Also, the scope of a PSI Agency includes Packing & Marking and Supervision of Loading for commodities and materials like Metals, Scraps of Metals, Papers, Food Grains, Coal, Ores, Minerals, Petroleum Products, Timber, etc.,

In international trade most of the countries today require Pre-Shipment Inspection. It is mandatory to have Pre-Shipment Inspection done to get customs clearance in a “Member Country”. The term “Member Country” here implies any country which is party to the World Trade Organization’s (WTO) GATT and other Multilateral Trade Agreements and is defined as “a Member of which the government or any government body contracts for or mandates the use of pre-shipment inspection activities”.

The pre-shipment inspection can be agreed upon between a buyer, a supplier, and a bank, and it can be used to initiate payment for a letter of credit. A PSI can be performed at different stages before shipment, such as checking the total amount of goods and packing, controlling the quality or consistency of goods, checking of all documentation, as for example test reports, packaging list,or verification of compliance with standards of the destination country likeASME, CE mark and import duties