CAP-INDIA
How do I get a pre shipment inspection certificate?
The Director-General of Foreign Trade (DGFT), Government of India authorized Pre-Shipment Inspection Agency (PSIA) is 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.
What is pre shipment inspection certificate?
A pre shipment inspection certificate is a trade document issued by an independent inspection agency. The document accompanies shipments from the factory to certify that the goods conform with specifications stated on the sales contract and/or letter of credit.
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 the Foreign Trade Policy of India, the importer needs to furnish the original copy of the PSIC document for customs clearance. Due to the prevailing lockdown for COVID 19 pandemic, the importers are facing difficulties in furnishing 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 clarified 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 the soft –copy of the PSIC Certificate for custom clearance.
- The importer needs to furnish an “Undertaking in prescribed format” along with the PSCI to the concerned custom authority at the time of custom 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 Upto June 31st, 2020.
Note on Pre-shipment Inspection Certificate (PSIC)
As mentioned above, the Pre-shipment Inspection Certificate (PSIC) is one of the mandatory documents for the import of metallic waste and scraps. This certificate is issued to ensure that the metal scrap is free from any radioactive material 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 (LC).
The PSI certificate is usually included in the package of reports for the shipment such as the bill of lading (BL), certificate of origin (CO) and packing list. The importer can also use the PSIC to initiate the transfer of payment from an intermediary bank.
Prescribed Authority
The Director-General of Foreign Trade (DGFT), Government of India authorized Pre-Shipment Inspection Agency (PSIA) is 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 know 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 who is seeking the scanned copy of the Pre- Shipment Inspection Certificate (PSIC) should first have his/her 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 material that they want to import to India.
- The Importer specifies the location 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 carry out the inspection of the products being loaded.
- The PSIA Authorized Representative / Inspector visits the Exporter’s yard and physically inspects the material being loaded.
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- The inspector will conduct a visual inspection to verify the quality of the scrap metal, that is whether the material meets with 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 determining the radio-activity level on the scrap and at 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 loading of the containers is completed, 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 radio-activity readings of the consignment inspected.
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 any future reference. The Format of Pre-Shipment Inspection Certificate is as follows:
PSIC for Custom Clearance
As per the Trade notice, the importer needs to provide an undertaking to the concerned Custom Authority along with the scanned copy of PSIC at the time of the customs clearance. The undertaking format is as follows:
Certificate of Origin
Certificate of Origin is an instrument which establishes evidence on origin of goods imported into any country. These certificates are essential for exporters to prove where their goods come from and therefore stake their claim to whatever benefits goods of Indian origin may be eligible for in the country of exports.
Types of Certificate of Origin
There are two categories of Certificate of Origin, preferential and non-preferential.
Preferential Certificate of Origin
Rules of origin are the criteria needed to determine the national source of a product. Their importance is derived from the fact that duties and restrictions in several cases depend upon the source of imports. The arrangement/scheme under which India is receiving tariff preferences for its exports are:
- Generalised System of Preferences (GSP)
- Global System of Trade Preferences (GSTP)
- SAARC Preferential Trading Agreement (SAPTA)
- Asia-Pacific Trade Agreement (APTA)
- India-SriLanka Free Trade Agreement (ISLFTA)
- Indo-Thailand Free Trade Agreement
- India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA)
- India-Korea Comprehensive Economic Partnership Agreement (CEPA)
- India-Japan Comprehensive Economic Partnership Agreement (IJCEPA)
- ASEAN-India Free Trade Agreement
These preferential arrangements/agreements prescribe Rules of Origin which have to be met for exports to be eligible for tariff preference. Authorised Agencies on charging a fee as prescribed by them provides services relating to issue of Certificate of Origin, including details regarding rules of origin, list of items covered by an agreement, extent of tariff preference, verification and certification n of eligibility. Export Inspection Council (EIC) is one such agency.
Non Preferential Certificate of Origin
Non-preferential Rules of Origin are the instruments used to determine the “nationality” of a good when entering a country. The country of import is then entitled to request a certificate of origin to prove the non-preferential origin of the good imported. Exporters desiring Non preferential Certificate of Origin may apply with following documents:
- Details of quantum/origin of inputs/consumables used in export product.
- Two copies of Invoices
- Packing List in duplicate for concerned invoice
- Fee not exceeding Rs.100 per certificate as may be prescribed by concerned agency.
The Concerned agency would ensure that goods are of Indian origin as per general principles governing rules of origin before granting Non Preferential Certificate of Origin.
Procedure for Obtaining Certificate of Origin
Permanent / Regular Shipment Basis
For obtaining Certificate of Origin on regular basis, exporters are required to furnish a permanent indemnity bond on a stamp paper of Rs.50/- duly attested as per format given below :
The Director General
Federation of Indian Export Organisations
New Delhi.
Respected Sir/Madam,
In consideration of the Federation of Indian Export Organisations, New Delhi and its Regional Offices from time to time, giving or Authenticating Certificate of Origin, legalizing Invoices and other documents in respect of goods for exportation by (Name and Address of Shippers).
We hereby certify that all particulars contained in Invoices or other documents presented to the Federation by us in our name for their certification or authentication or legalisation shall be true and accurately set forth, and further that we shall at all times, indemnify and keep indemnified the Federation and its Officials against all claims and demands that may at any time be made against them or any of them by reason of issuing or authentication or legalisation of such certificates, invoices and other documents as aforesaid.
Yours faithfully,
(Signature & Rubber Stamp of the Shippers)
Place:
Dated:
Witness 1 :
Witness 2:
Individual Shipment Basis
For obtaining Certificate of Origin on an individual shipment basis, exporters are required to furnish a indemnity bond on a stamp paper of Rs.10/- duly attested as per format given below :
The Director General
Federation of Indian Export Organisations
New Delhi.
Respected Sir/Madam,
In consideration of your signing the Certificate of Origin, and prices, at our request for the under-mentioned shipment to (place), to the effect that the goods are the produce or manufacture of the Republic of India and that the prices shown against them are correct, we hereby agree to indemnify the Federation against any claim or demand that may at any time be made against the Federation by reason of the Certificate of Origin and prices having been so issued.
Marks No:
Description of goods:
Name of steamer:
Date of shipment:
Bill of lading:
Value of shipment:
Yours faithfully,
(Signature & Rubber Stamp of the Shippers)
Place:
Dated:
Witness 1:
Witness 2:
Documents Required for Obtaining Certificate of Origin
- A covering letter to FIEO for issue of Certificate of Origin/Certification of copies of Invoices/Packing List, etc. The letter should also indicate that the information furnished in the relevant documents is true and correct.
- Indemnity Bond as mentioned above.
- Nine Copies of the Certificate of Origin duly completed along with one copy of the invoice for FIEO records having following declaration:
- “We hereby declare that the goods mentioned in this invoice are of Indian Origin and manufacture.”
- In case copies of invoices are also required to be attested, 9 copies of the same may also be submitted with the above declaration.
Post by IndiaFilings.com
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