Pre-Shipment Inspection Certificate (PSI Certificate) is a certification document issued by a third-party inspection agency designated or recognized by the government of the importing country, after inspecting the quality, quantity, packaging, and price of the goods in the exporting country before shipment. Its core purpose is to prevent fraud, ensure that imported goods comply with contract or regulatory requirements, and it is often used for customs valuation, tariff collection, and foreign exchange control in the importing country. Usage scenarios include: mandatory PSI requirements by the importing country (e.g., some African and Middle Eastern countries), or PSI agreed by both buyer and seller as the basis for delivery. Precautions: PSI certificates usually need to be completed before shipment; if the inspection fails, it may delay the shipping schedule; the certificate content must strictly match the letter of credit, invoice, and packing list, otherwise the bank may refuse payment. The difference from ordinary commodity inspection certificates (such as CIQ) is that PSI focuses more on official authorization by the importing country, price verification, and one-time pre-shipment inspection, while commodity inspection certificates may only target quality or quantity. In addition, PSI fees are usually borne by the importer, but this must be clearly stated in the contract.
📝 Examples
1. According to the contract, the exporter must entrust SGS for inspection before shipment and obtain a PSI certificate so that the importer can smoothly clear customs at the destination port. (Note: This clarifies that the PSI certificate is a required document for import customs clearance.)
2. Since the letter of credit requires submission of a PSI certificate, we have contacted BV inspection agency to complete the inspection before loading, and the certificate is expected to be issued within three working days. (Note: This demonstrates the connection between the PSI certificate and letter of credit terms and the operational process.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner