Q.Why is it necessary for an export firm to go in for pre-shipment inspection?

Because certain export products are required by government rules to be quality-inspected before shipment. Pre-shipment inspection by a designated agency certifies that the goods are up to standard, protects the importing country from poor-quality goods, and builds the exporter's reputation. Without the inspection certificate, the goods cannot clear the export formalities. …

What pre-shipment inspection is

• To ensure quality, the government requires compulsory inspection of certain products by a designated agency before they are exported.
• This is done under the Export (Quality Control and Inspection) Act, 1963.
• Where applicable, the exporter must obtain an inspection certificate from the Export Inspection Agency (EIA) (or another designated agency) and submit it along with the other export documents.

Why it is necessary

• Legal requirement — For notified products it is compulsory; the goods cannot clear export formalities and customs without the inspection certificate.
• Ensures quality — It confirms the consignment is export-worthy, so that only good-quality goods leave the country.
• Protects the importing party and the country's image — It safeguards foreign buyers from substandard goods and protects the reputation and goodwill of the exporting country in world markets.
• Smooth documentation — The inspection certificate is one of the documents submitted to the Customs Appraiser, so having it keeps the shipment moving.

When it is NOT compulsory …