Pre-Shipment Inspection (PSI)
Intertek provides pre-shipment inspection (PSI) services to governments as a way of protecting import revenues for themselves and their citizens.
Governments implement PSI programmes to ensure that imports comply with their regulations. Non-compliance with these regulations can result in:
- The loss of valuable duty and tax revenue
- The loss of foreign exchange reserves (in countries where exchange controls exist)
- The potential importation of substandard or prohibited goods
How It Works
- A physical inspection of goods is carried out in the country of export pre-shipping, establishing the exact nature of the goods.
- The invoice and other documents are then scrutinised and an accurate valuation, and customs tariff code, are assigned. These are used, in conjunction with, the client country's published duty rates, to calculate the correct duties and taxes payable.
- An Intertek certificate is then issued to the importer. This is used to substantiate the payment of full duty, prior to clearing the goods.
- The actual duty collected is compared with the Intertek certificates, and any shortages can be investigated and corrected.
Intertek Pre-Shipment Inspection (PSI) maximises duty collections. By undertaking duty assessment in the country of export, importers have no opportunity to pressurize customs to assign lower rates.
Compliance with the World Trade Organisation (WTO) Agreement on Customs Valuation is now mandatory for all members. Without Intertek PSI, countries introducing the Agreement invariably experience a reduction in revenue collections. Intertek ensures that the Agreement is fully implemented as required by the WTO, and in a way that maintains duty revenue collections.
Trade facilitation: inefficient Customs administrations and the failure of importers to comply with import procedures can both delay trade. An Intertek certificate ensures rapid Customs clearance, by undertaking the necessary physical and documentary inspections before the consignment is dispatched.
Intertek PSI deters capital flight in countries where exchange controls exist by preventing deliberately inflated invoicing. This can deplete foreign exchange reserves, which can also reduce the taxable income declared by multinational companies.
Intertek PSI significantly reduces the incidence of illegal imports, such as radioactive waste, by inspecting shipments in the country of export before dispatch.
As a PSI programme takes effect, so a vast database of vital trade information is created, which can be supplied to the Client Government in a variety of formats, as an aid to economic decision making and to induce confidence in donors
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