DGFT Increases Operational Area and Inducts New PSIAs in Appendix 2G of FTP, 2023

The Directorate General of Foreign Trade ( DGFT ) recently issued a public notice informing the expansion of the operational areas to be tended to by Pre-Shipment Inspection Agencies ( PSIAs ), recently added to Appendix 2G of the Foreign Trade Policy ( FTP ) 2023.

Appendix 2G of the FTP, 2023 details the list of approved PSIAs authorized to perform pre-shipment inspections on goods destined for export. The inspections conducted by PSIAs are integral to adequately verifying the quality and quantity of the goods and to ensure that they meet the statutory requirements set by both the exporting and importing countries.

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Inclusion of newer PSIAs and expansion of operational area would pave the way for increased efficiency and enable the newly inducted PSIAs to provide services across broader geographic locations, benefiting both exporters and importers.

9 new PSIAs spanning across the UK, USA, Russia, U.A.E., China, Hong Kong, Malaysia, Papua New Guinea, Philippines, Singapore, Thailand, Brazil, Australia and Canada shall stand reflected in Appendix 2G of the Appendices and the Aayat Niryat Forms of the Foreign Trade Policy ( FTP ), 2023 in terms of Para 2.52(c) of Handbook of Procedure ( HBP ), 2023 with immediate effect.

Additionally, 6 pre-existing PSIAs across Puerto Rico, UK, USA, Singapore, Algeria, Canada, French Polynesia, Italy, Australia, Sri Lanka, Ireland, Mayotte, Réunion, Vietnam, Madagascar, South Africa, U.A.E., South Korea and Netherlands have been permitted to add additional instruments to their existing instruments

While the newly included PSIAs have been given assent to operate for a period of 3 years from the date of publication of the Notice or until such time as notified by the DGFT, the PSIAs whose operational areas have been revised are required to mandatorily fulfill certain conditions within 45 days for the issuance of Pre-Shipment Inspection Certificates ( PSIC ) on the DGFT Portal. Following are the conditions stipulated for pre-existing Notices:

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1. Submission of an updated calibration certificate, valid for a minimum period of six (6) months, pending if any;
2. Provision of a valid Bank Guarantee;
3. Submission of additional documents as prescribed by the 26th Meeting of the Inter-Ministerial Committee (IMC) substantiating the credentials; and
4. Update mapping of equipment vis-å-vis their areas of operation, on the DGFT Portal as notified

Additionally, the Notice has reiterated that all existing and newly added PSIAs have been duly mapped as per the choice exercised by PSIAs according to their respective areas of operation/countries in relation to their equipment, specifically the ‘hand-held radiation survey meter’.

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