Pre-shipment Inspection

Pre-shipment Inspection (PSI) in International Trade

Meaning of Pre-shipment Inspection (PSI), according to the Dictionary of International Trade (Global Negotiator): An inspection of contract goods prior to shipment so as to ascertain their quality, quantity or price. Importers may insist on PSI, requiring the exporter to furnish a certificate of inspection – commonly issued by neutral, internationally respected firms such as SGS o Bureau Veritas) – so that the importer is assured of receiving goods of quality/quantity specified in the sale contract. Government agencies may require inspection certificates as regards price, so as to prevent parties from under or over invoicing in an attempt to pay lower customs duties or evade foreign exchange restrictions. See certificate of inspection. Model of Certificate of Inspection.