DGFT Suspended Agencies Involved in Issue of PSIC

Directorate General of Foreign Trade (DGFT) in December 2010 blacklisted and suspended 12 agencies that issue pre-shipment inspection certificates (PSIC).   DGFT is the government organization which is responsible for the formulation of export-import (exim) guidelines and principles for importers and exporters of the country with a view to promote Indian exim trade. DGFT appoints inspection agencies to inspect and certify on its behalf shipments containing items like metal scrap that come to the country from foreign shores. The agents are entrusted with the responsibility of safeguarding the interests of the country against dangerous and hazardous goods from being imported to India. Metal scrap importers had been lately complaining about the misuse of authority by these agencies. DGFT is currently working on developing a guideline for the inspection agencies to seal the loopholes in the current practice. DGFT should consider allowing large, reputed metal scrap yards the option of self certification for importing metal scrap to India.