Pre Shipment Inspection Fees

[SHOEB VAPIWALA]

Dear Sir

Regarding SGS – Pre-shipment Inspection(PSI) certification of the prescribed country, the SGS office charge about 0.56% of the FOB Value or USD350/- Plus Service tax. Secondly they ask for Chemical and Mechanical Test Report that is also hefty charges by the since the empanelled / authorized labs.

1. The question is If the consignment value is lower say for LCL cargo too the same certification are required?

2.If the manufacturer provide test reports on their own letter head instead of the authorized labs, will it acceptable?

On submission of self-declaration the SGS will issue the PSI certificate? Is there any prescribed systems? Pls brief.

Thanks with regards.

[YAGAY and SUN]

Dear Shoeb,

Para 2.31 read with para 2.32 of HBP Vol.1 is relevant in this regard. Non compliance may attract hefty penalty and seizure of consignment if PSI certificate is not obtained from recognized PSIA and submitted to the Customs Authorities.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[MUKUND THAKKAR]

Dear Shoeb,

1. The question is If the consignment value is lower say for LCL cargo too the same certification are required?

Yes, SGS certificate is require to meet requirement Importing country.it is not specify and weight or value based but mandatory requirement.

2.If the manufacturer provide test reports on their own letter head instead of the authorized labs, will it acceptable?

No, if supplier providing their any test reports are not valid. if it is acceptable than why such agency are operating. only such agency reports are consider by importing country.

SGS will providing you their own format for certification.

Regards.

AI Summary

Pre-shipment inspection requirement: recognised PSIA certification is mandatory and noncompliance risks penalties and seizure.
Pre-shipment inspection certification from a recognised PSIA is mandatory regardless of consignment weight or value, including LCL cargo; agency and empanelled laboratory testing fees apply. Supplier self-issued test reports or self-declarations are not acceptable substitutes for authorised laboratory reports or PSIA certification. Non compliance by failing to obtain and submit a recognised PSI certificate may attract penalties and seizure under customs procedures, and PSIA-prescribed certification formats and customs handbook guidance must be followed.