Pre-Shipment Inspection Information Available at Export.Gov

(Export.gov was created to provide better customer service for businesses interacting with the Federal Government. The International Trade Administration (ITA) manages Export.gov as a collaborative effort with 19 Federal agencies that offer export assistance programs and services.)

PSIs are required when mandated by the government of the importing country and are used to ensure that the price charged by the exporter reflects the true value of the goods, to prevent substandard goods from entering their country, and to mitigate attempts to avoid the payment of customs duties.

32 Countries Require, Request PSIs

The following countries currently require or request PSIs for certain values, certain types of goods, or for all imported products:

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

According to Export.gov, most countries listed above request inspections for shipments above a certain value. However, in some instances inspections are necessary for all imported products, regardless of value. In some cases, a country may require PSIs only for certain types of goods. (See examples below.)

*Kuwait requires PSIs for regulated products valued at more than $3,000. Mexico requires a PSI for a variety of goods such as shoes, textiles, steel, and bicycles only if they do not qualify for NAFTA. Shipments to Kuwait and Saudi Arabia (which does not require a PSI) must contain a "certificate of conformity" for a small number of products - this certification verifies that the product conforms to the relevant standard by testing and inspecting prior to shipment from the exporting county.

PSIs Typically Performed by Contracted Private Organizations, Costs Typically Paid by Importer, Importer's Gov't

Export.gov states that PSIs are typically performed by contracted private organizations. In most cases, importers can select from a short list of these organizations when planning inspections. However, sometimes one firm is appointed to carry out inspections for a given country on an exclusive basis. (See Export.gov for a list of widely used private inspection companies.)

Inspection costs are generally paid either by the importer or by the government of the importing country. However, in some cases, the inspection agency may invoice the seller in the event of supplementary inspection visits.

The costs associated with presenting the goods for inspection (such as unpacking, handling, testing, sampling, and repackaging) are the responsibility of the seller.

Exporter Must Make Goods Available for Inspection in the Country of Origin

Although the importer is generally responsible for arranging the PSI, the exporter must make the goods available for inspection in the country of origin.

Delays in the process can lead to problems with the shipment and/or increased costs for the exporter. Therefore, it is in the best interest of exporters to work with their freight forwarder to ensure that all information is accurate and is provided to the inspection company immediately after notification of the requested inspection. (Requirements for PSIs are sometimes spelled out in letters of credit or other documents.)

(Generally, the inspection company starts the inspection process once it receives a copy of the inspection order from the importing country. An inspection order states the value of goods, the name and address of the importer and the exporter, the country of supply, and the importer's declaration of customs code. The inspection company then contacts the exporter to arrange an inspection site and time. (See Export.gov for a list of the "usual" steps of the inspection process.))

If there is a Disagreement, a Resolution Should be Negotiated with Inspection Company

If a disagreement arises on the findings of the PSI, a resolution to the discrepancy should be negotiated with the inspection company. However, if exporting to a World Trade Organization (WTO) member country, the WTO Agreement on Pre-shipment Inspection spells out the responsibilities of the exporter and the inspection company. The Agreement requires the inspection company to appoint an appeals official and comply with the Agreement guidelines when carrying out their pre-shipment inspection services for signatory countries. (Information on the Agreement available at http://tcc.export.gov/Trade_Agreements/Exporters_Guides/List_All_Guides/exp_005555.asp)

Agencies w/in USDA Provide Inspection Services when Certificates Required to Clear Agricultural, Food Products

According to Export.gov, several agencies within the U.S. Department of Agriculture provide inspection services when certificates are required to clear agricultural and food products through overseas customs. Sanitary and phytosanitary certificates, which are normally issued to protect U.S. consumers, can also be used for international trade purposes.

PSI Regulations Change Often, Contracts for PSIs Reviewed Periodically

Export.gov notes that PSI regulations change often, and contracts for PSIs are reviewed periodically. Exporters can contact the Commerce Department's Trade Information Center at 1-800-USA-TRAD(E), inspection companies, or freight forwarders for more information on current regulations.

Information on PSIs available at http://www.export.gov/logistics/exp_inspections.asp