Benefits
Pre-Shipment Inspection (PSI) maximises duty collections. By undertaking duty assessment in the country of export, importers have no opportunity to pressurize customs to assign lower rates. Compliance with the World Trade Organisation (WTO) Agreement on Customs Valuation is now mandatory for all members. Without PSI, countries introducing the Agreement invariably experience a reduction in revenue collections.
The Agreement is fully implemented as required by the WTO, and in a way that maintains duty revenue collections. Trade facilitation: inefficient Customs administrations and the failure of importers to comply with import procedures can both delay trade. The certificate ensures rapid Customs clearance, by undertaking the necessary physical and documentary inspections before the consignment is dispatched.
PSI deters capital flight in countries where exchange controls exist by preventing deliberately inflated invoicing. This can deplete foreign exchange reserves, which can also reduce the taxable income declared by multinational companies.