Q.5:- Why is it necessary for an export firm to go in for pre-shipment inspection?
An export firm has to go in for pre-shipment inspection as required by the Government of India to ensure that only good quality products are exported from the country. The government has passed Export Quality Control and Inspection Act, 1963 for this purpose of compulsory inspection of certain products by a competent agency as designated by the government. If the product to be exported comes under such a category, the exporter needs to contact the Export Inspection Agency (EIA) or the other designated agency for obtaining inspection certificate. The pre-shipment inspection report is required to be submitted along with other export documents at the time of exports. Such an inspection is not compulsory in case the goods are being exported by star trading houses, trading houses, export houses, industrial unit’s setup in Export Processing Zones/Special Economic Zones (EPZs/SEZs) and 100% Export Oriented Units (EOUs).