Importance of PSI Certification from a DGFT Recognized Metal Scrap Management Firm

sgnco By sgnco, 13th Feb 2017 | Follow this author | RSS Feed | Short URL http://nut.bz/12faom7s/
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The export of metal scrap is governed by strict rules and regulations set up by the DGFT. These rules are in place to protect the interests of both the exporter and the importer. In this article, the importance of procuring a Pre-Shipment Inspection certification from a recognised metal scrap management firm has been discussed.
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Importance of PSI Certification from a DGFT Recognized Metal Scrap Management Firm

For companies procuring scrap metal and ferrous metal scrap for recycling purposes, it is essential to ensure that the contingent of scrap metal has been certified by a scrap metal management firm, as being free of any hazardous element. The Directorate General of Foreign Trade or the DGFT’s office authenticates certain scrap metal management firms and you should ensure that you procure Pre-Shipment Inspection (PSI) certification from one of these companies.

Checking for Radioactivity:
According to a renowned scrap metal management firm, scrap metal analysis carried out by DGFT authenticated firms will be rigorous, thereby ensuring that the particular contingent of scrap metal meets your company’s requirements. Besides, scrap metal often needs to be evaluated for radioactivity. This evaluation can only be done by scrap metal management firms that have access to modern machinery, capable of detecting even the slightest levels of radioactivity. Other than identifying radioactive elements, there are other important reasons behind hiring a scrap metal management firm and some of these have been discussed below.

Hiring a Scrap Metal Management Firm:
Scrap metal management companies hire professionals who are qualified to evaluate the exact nature of the individual metals in a contingent of scrap metal. Most of the employees in these companies have chartered engineer certificate for export so that they have the pre-requisite qualification, to evaluate the contingent of scrap metal and provide PSI certifications accordingly.

Some of the reasons behind hiring a renowned scrap metal management firm are as follows:

•The various contingents of scrap metal being exported will be evaluated separately, even if it has be ordered by a single client. This ensures that there is no chance of discrepancy in the quality of scrap metal even for a single contingent of the commodity.
•The company will carry out specific analysis of the scrap metal to identify the presence of impurities. Moreover, the evaluation of the impurities are essential to ensure that it does not affect the quality of the particular contingent of scrap metal.
•The PSI certification is essential to ensure that the particular contingent of scrap metal is free of any hazardous element. Additionally, it will also assure the Government authority that the contingent of scrap metal does not contain any illegal items or prohibited things.
•The chartered engineer for export hired by the scrap metal management firm, will also evaluate the financial aspect of the transaction, such as the valuation of the particular contingent of scrap metal, audits of all issues related to price of components, services procured and other similar financial details.

Thus, to ensure that your company does not get into any legal hassle with the DGFT’s office, it is important that you hire a recognized scrap metal management firm. Moreover, with proper PSI certification your company’s management will also be assured of the quality of the scrap metal being exported.

Hence, it is advisable that while exporting potentially high risk commodities like scrap metal, you should first hire a DGFT authenticated scrap metal management firm and then proceed with the transaction.

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Chartered Engineer Certificate For Export, Psi Certification

Meet the author

author avatar sgnco
Sandeep Garg and Company (SGNCO) is a pioneer in providing metal scrap recycling, metal scrap inspection, PSI Certification, and other legal assessments in India.

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