What should we know about the pre-shipment inspection?

Purpose and time of pre shipment inspection:

Some governments of the importing countries require pre-shipment inspection. The government claims that pre-shipment inspection ensures that the fees charged by exporters reflect the true value of the goods, prevents substandard goods from entering their country and checks whether the goods evade tariffs.

Pre-shipment inspection is required or required below:

Angola, Bangladesh, Benin, Burkina Faso, Burundi, Cambodia, Cameroon, Central African Republic, Comoros, Republic of the Congo (Brazzaville), Democratic Republic of the Congo (Kinshasa), Ivory Coast, Ecuador, Ecuador, Ethiopia, Guinea, India, Indonesia, Iran, Kenya, Kuwait, Liberia, Madagascar, Malawi, Mali, Mauritania, Mexico, Mozambique, Niger, Senegal, Sierra Leone, Togo, Uzbekistan.

Most of the countries or regions listed above require the inspection of goods exceeding a certain value of goods. However, in some cases, all imported products must be inspected, regardless of their value.

PSI regulations are frequently changed and contracts for pre-shipment inspection are periodically inspected.

Procedure for pre-shipment inspection:

Although the importer is usually responsible for arranging the pre-shipment inspection, the exporter must inspect the goods in the country of origin.

The steps of the inspection process are usually as follows:

The importer opens the import document or license.

The importer shall notify the inspection service department of the importing country of the goods to be shipped, and shall pay the inspection fee in advance or a certain percentage according to the terms of the inspection contract of the importing country.

The inspection sheet is forwarded to the inspection company office in the exporting country.

The inspection company contacts the exporter to arrange the date, time and place of the inspection. It also requires all required shipping documents and price information (invoices). Exporters must provide these documents in a timely manner to avoid demurrage charges or other fines.

Conduct the inspection.

If no difference are found during the inspection and all final documents are received from the importer and exporter, a "found cleaning report" will be issued to confirm the value of shipment, customs classification and clearance. The final document required to issue a "clear report of findings" varies by contract, but in most cases includes the final invoice and bill of lading or airline note.

Goods are shipped to the importing country.

The importer uses the inspection reports to obtain the imported goods released by the customs. If goods reach the importing country border without inspection, they must usually be re-exported to nearby countries for inspection before re-entry, or they face heavy penalties.

Solution to problems arising in the pre-shipment inspection:

If there is disagreement on the findings of the pre-shipment inspection, the differences shall be negotiated with the inspection company. However, if exports are made to world Trade Organization (WTO) members, the WTO Pre-shipment Inspection Agreement states the responsibilities of exporters and inspection companies. The agreement requires the inspection company to appoint an appeal officer and comply with the agreement guidelines when providing pre-shipment inspection services to the signatory country.