Pre-Shipment Inspection (PSIC) Certificate: A Practical Guide

The online business is rapidly growing and if you have decided to expand your business globally, this article will help you navigate the world of export. 

Have you ever dreamt of selling your products globally? This can become a reality in today’s world of eCommerce. However, operating in the global environment introduces new factors to consider. As you embark on this exciting journey, one of the documents that you may find essential is the Pre-Shipment Inspection Certificate (PSIC). This is the ultimate guide on the PSIC certificate to help you understand it and export like a pro.

• International Market Potential: Statista estimated that international eCommerce sales are expected to cross USD 8 trillion by 2027. This presents significant opportunities to access a large market for your products. Nevertheless, compliance of your products with international standards must be the top priority.
• The Role of the PSIC: An independent PSIC facilitates an easy connection with direct dealers and foreign buyers. It assures that the products you intend to import have gone through a check and balancing mechanism to meet the law requirements of the importing country.
• Ready for Global Success: Understand PSICs is crucial to choose rightly and help you achieve your specific international sales goals.

The Importance of PSICs:

The Pre-Shipment Inspection Certificate (PSIC) provides the necessary safeguard for you and your foreign buyers. It effectively checks that your products comply with the importing nation’s standards for quality, safety, and labelling. According to a World Trade Organisation survey, 42% of exporters struggle to achieve the technical standards and rules. Getting a PSIC completely resolves the issue. The PSIC certificate helps win over the confidence of foreign buyers, enhancing the security and effectiveness of the export procedure. Furthermore, PSICs can shorten the time needed to get past customs obstacles by demonstrating that your products comply with all the necessary regulations. This prevents the products from being turned away at the border and ultimately results in more effective end-to-end operations for your company and clients.

Pre-Shipment Inspection Certificate (PSIC): What Do You Need to Know?

PSIC is a vital component for successful exporting. Serving as a legally-recognised document of an independent inspection authority, a PSIC proves that your products meet the identified quality, safety, and labelling norms and standards required by the importing country. This document helps to build friendly relations with your overseas customers since you will not have to deal with the issue of customs hold or rejection. The PSIC cuts across all the huddles and ensures the export of your products in the shortest time possible. Thus, learning about the various PSICs and the processes of acquiring such documents will assist you in developing a strong understanding of the international eCommerce framework and tapping into the numerous opportunities within this sector.

Exploring Different Types of Pre-Shipment Inspection Processes

As you now have the overview of PSICs, let’s explore the various types of pre-shipment inspection available. There are two main types of PSICs, each catering to specific needs:

• Official PSIC: This type of audit is compulsory for some countries. It confirms that the products bear the characteristics of the importing country’s standard and permits the release of the consignment through customs. The inspection is normally a procedure carried out by a government-approved body in the exporting country.
• Commercial PSIC: This type of assessment is not obligatory but can become very useful. It offers a third-party confirmation of your goods’ characteristics and quantity that meets the terms and conditions of your sale agreement. This eases the import process, thereby building the much-needed trust with your international buyer.

Choosing the Right PSIC:

Consequently, the type of PSIC that you may need will depend on the importing country’s specific needs and the terms of sales. Market research is important to find reliable information on such matters before engaging in export processes.

Advantages of Holding a Pre-Shipment Inspection Certificate:

Having a PSIC certificate has numerous advantages for your international business. Here is a closer look at these benefits:

• Reduced Risk of Delays and Rejections: A PSIC shows everybody that your products comply with the required import standards. This will help avoid any inconvenience of delayed or rejected consignment at the customs, hence cutting on time and cost.
• Enhanced Buyer Confidence: Such certification enhances confidence with international buyers since there is an independent confirmation of the quality and safety of products. This, in turn, can create better business relationships and increase the chances of repeat orders.
• Streamlined Customs Clearance: A PSIC can also enable clearance for your products at the customs, thus, making it easier for the products to reach the intended market at the right time. This means the business experiences shorter cycles in their sales and better cash flows.
• Reduced Insurance Costs: Some insurance companies provide their services at reduced prices, especially if the consignments will bear the PSICs, because they are likely to be associated with low risks.
• Improved Brand Reputation: Adhering to PSICs is useful in the global market as it indicates the quality to the consumers.

Key Criteria for Successfully Passing Pre-Shipment Inspections:

Let’s learn about the crucial factors for a successful PSIC Certificate. These elements form the basis of efficient export and guarantee that your products reach their export destination in the quickest time possible.

• Product Quality: This forms the basis of a sound inspection program. Ensure that your products conform in every regard to the quality control that has been stated in the laws of the importing country or the sales agreement. Any variation from these standards could lead to rejection during the inspection, causing a lot of delay.
• Safety Compliance: It is essential to strictly follow all other safety regulations as required by the importing country. This might include elements of packaging required for the specific product or particular labelling, which informs the potential risks of using the product. Non-compliance with such regulation is a clear danger to public health and may lead to rejection of your shipment.
• Accurate Labelling: Ensure that the labeling used for your products is correct and meets the language and labeling laws of the importing country. This includes font size, pictograms, and any compulsory signal words that must be translated into the host country’s language. Lack of appropriate labelling leads to confusion among the consumers and may even lead to failure in complying with the consumer protection laws of the importing country.
• Complete Documentation: Gather all the necessary documentation for the inspection. This commonly comprises commercial invoices, specified lists with details of the content of every shipment, and bills of lading, which contain details of the movement plan. Ensure that the information recorded in all these documents is correct and does not contradict any of the physical goods shipped out.

Steps to Obtain Your Pre-Shipment Inspection Certificate (PSIC):

Getting a pre-shipment inspection done may sound highly complex, especially if you’ve never done it before. Here is a simple breakdown of the process. You will have all the information needed to obtain a PSIC certificate.

1. Research Requirements: The first key activity is indentifying the exact PSIC type needed to export your products.

• Consult the importing country’s regulations. It is usually articulated through the government websites of the destination country regarding the mandatory PSICs for particular product categories.
• Review your sales contract; there can be situations where some of the sales contracts may require PSIC even if it the laws of the destination country do not require it.

2. Choosing an Inspection Body: The selection of a competent and accredited inspection body is very important. Consider the following:

• Accreditation: Ensure that the selected body has accreditation from the recognised organisation for conducting PSIC for the concerned country and the product type.
• Experience and Expertise: Consult with an inspection body that already has experience with your type of product since they are more likely to know what to look out for.
• Geographic Reach: This concerns their availability in importing and exporting countries to ensure effective communication and solving related issues.
• Service Offerings: Analyse the services offered, like pre-inspection consultation, sample analysis, and on-site analysis.

3. Requesting a Quote and Scheduling the Inspection: After deciding on the credibility of an inspection body, get in touch with them for a breakdown of the quotation. The cost typically varies depending on:

• Type of PSIC: Official PSICs are usually more expensive when compared to the commercial PSICs.
• The Volume of Products: Most characteristics are connected to the shipment’s size. When inspecting a large quantity of products, organisations could offer a lower cost per unit than when inspecting a smaller lot size. This facilitates large-scale exporting with less effort and expense.
• Complexity of Inspection: Most PSIC inspections include a basic review of documents and sample products; however, some categories require elaborate assessment procedures. Here are some examples of products that need exclusive tests to be done.

Electronic Gadgets: 

• Short circuits: Testing for electrical overload as one of the product capabilities.
• Leakage current: Assessing the ability of electrical current to leak from the product and pose a threat to the user.

Medical Products: 

• Biocompatibility: Determine if the materials incorporated in the device are safe for tissues and other body fluids and whether they will negatively affect the human body.
• Sterilisation: To ensure that the device being used is free from transmitting any form of infection.
• Performance testing: To guarantee the functionality of the device.

Food & Beverages: 

• Chemical testing: Determination of any element, particle, or compound that can potentially harm or irritate the skin.
• Nutritional analysis: Evaluating the truthfulness of the information presented to the consumer on the product label.

Children’s Products & Toys

• Flammability: Determining the degree to which fire impacts the product.
• Choking hazard testing: Determining the sizes and shapes of different parts because some can be dangerous to children under three.

Once you have estimated and agreed on the quote, set a date for the inspection at your convenience. This could include an on-site inspection of your manufacturing plant or your warehouse, or allow submission of the product samples to their preferred testing laboratory.

Conclusion

The world of international eCommerce is filled with tremendous potential, but when it comes to exporting, the process can appear overwhelming. Pre-Shipment Inspection Certificate or PSIC certificate is a very important document for clearing customs and ensuring that your foreign customers gain confidence in your business. Transportation cost is a major factor that affects the selling price since you are selling across borders.

Thus, ShiprocketX can be a one-stop shop for all your international shipping requirements. We source affordable prices from a list of credible shippers, so you can pick the cheapest service for your consignment. It also offers real-time tracking options that offer total visibility of the shipping process to ensure know everything. Are you prepared for the opportunities of international sales? Please go through the ShiprocketX website to get all the relevant information and insights for international shipping to export your products effectively. No matter what you have been planning for your international eCommerce site, we are here to help make it happen.