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DGFT Clarification on Pre-shipment Inspection Certificate (PSIC)

Pre-shipment Inspection Certificate

DGFT Clarification on Pre-shipment Inspection Certificate (PSIC)

The Pre-shipment Inspection Certificate (PSIC) is one of the mandatory documents for the import of shredded, un-shredded, compressed, and loose forms of metallic waste and scrap. According to India’s Foreign Trade Policy, the Importer must furnish the original copy of the PSIC document for customs clearance. Due to the prevailing lockdown for the COVID-19 pandemic, the importers face difficulties in providing the original copy of PSIC for custom clearance. To address such issues, the Director-General of Foreign Trade (DGFT) has vided Trade Notice No. 09.2020-20201, clarifying that the scanned copy of the Pre-shipment Inspection Certificate will be accepted for custom clearance and the original copy of the PSIC needs to be furnished to Customs within 60 days of the clearance.

The Gist of Trade Notification

  • The Importer of the metallic waste and scrap can submit a soft –copy of the PSIC Certificate for custom clearance.
  • The Importer must furnish an “Undertaking in prescribed format” along with the PSCI to the concerned custom authority at the time of customs clearance.
  • The Importer of the metallic waste/scrap also requires providing the original copy of the Pre-shipment Inspection Certificate to the customs within 60 days of clearance.
  • This facility for submitting the PSIC scanned copy for custom clearance will be available until June 31st, 2020.

Note on Pre-shipment Inspection Certificate (PSIC)

As mentioned above, the Pre-shipment Inspection Certificate (PSIC) is a mandatory document for importing metallic waste and scraps. This certificate ensures that the metal scrap is free from radioactive and radiation-explosive material.

The PSIC document accompanies shipments from the factory to certify that the products conform to specifications stated on the sales contract or letter of credit (L.C.).

The PSI certificate is usually included in the package of reports for the shipment, such as the bill of lading (B.L.), certificate of origin (C.O.), and packing list. The Importer can also use the PSIC to initiate the payment transfer from an intermediary bank.

Prescribed Authority

The Director-General of Foreign Trade (DGFT), Government of India, authorized Pre-Shipment Inspection Agency (PSIA) as the prescribed authority to issue the Pre-shipment Inspection Certificate (PSIC). The Importer can apply to any Pre-Shipment Inspection Agency (PSIA) to get the scanned document of PSIC.

Access the official website of DGFT to learn more about the New Pre-Shipment Inspection Agencies (PSIA) recognized under the Foreign Trade Policy 2015-2020.

Procedure to Get the Scanned copy of PSIC

Any Importer seeking a scanned copy of the Pre-Shipment Inspection Certificate (PSIC) should have their credentials verified and authenticated by the concerned PSIA.

Contact PSIA

  • When a PSIC is required, the Importer needs to contact the PSIA Head Office, informing them that they have a specific type of scrap metal they want to import to India.
  • The Importer specifies where the scrap is to be loaded and proposes the dates of loading/inspection.

Inspection of Goods

  • PSIA designates their Authorized Representative / Inspector in the appropriate country to visit the concerned Exporter’s yard and inspect the products being loaded.
  • The PSIA Authorized Representative / Inspector visits the Exporter’s yard and physically inspects the material being loaded.
    • The inspector will conduct a visual inspection to verify the quality of the scrap metal, that is, whether the material meets the description of the relevant grade and quality as per the correct H.S. Code.
    • The inspector will also check the details, such as the appearance of any explosives or war material, and determine the radioactivity level on the scrap and the background level using the appropriate equipment.
  • Loading of the containers will be carried out in the presence of the PSIA Authorized Representative / Inspector.
  • Once the containers are loaded, the containers will be handed over to the Exporter for shipment.
  • The PSIA Authorized Representative subsequently sends the satisfactory inspection report to PSIA Head Office, along with the loading photographs and copy of the Bill of Lading, along with the inspected radioactivity readings of the consignment.

Issue of PSIC

  • Based on the PSIA Authorized Representative report, loading photographs, and other documents PSIA Head Office issues the Pre-Shipment Inspection Certificate and hands this over to the Importer
  • The scanned copy of the PSIC issued is kept in PSIA records for future reference. The Format of the Pre-Shipment Inspection Certificate is as follows:

PSIC (1)
PSIC (1)

PSIC for Custom Clearance

As per the Trade notice, the Importer must provide an undertaking to the concerned Custom Authority and the scanned copy of PSIC at the time of customs clearance. The undertaking format is as follows: