Paragraphs 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
This article is on the Handbook only; the three paragraphs have no Policy paragraph of their own. Paragraph 2.52 says how an agency is recognised to issue pre-shipment certificates, paragraph 2.53 says what it must record and who answers for a wrong declaration, and paragraph 2.56 lets Customs and other authorities use inspection and certification agencies for capital goods.
The procedure is taken from Chapter 2 of the Handbook of Procedures, 2023 as published on the DGFT website (file of July 2026), consulted on 2 October 2026. Later Public Notices should be checked. For imports that are restricted or conditional, the restricted items import and export licence page explains the authorisation side. The paragraphs are the working side of the pre-shipment certificate that paragraph 2.51 of the Handbook asks for on imports of metallic scrap, explained in our article on import of metallic waste and scrap.
A Pre-shipment Inspection Agency (PSIA) is recognised by DGFT on an online application considered by an Inter-Ministerial Committee, for three years at a time (paragraph 2.52). It issues a Pre-shipment Certificate (PSIC) in the format of Appendix 2H and must keep photographic or video evidence of the inspection (paragraph 2.53). A wrong declaration exposes the agency, and the importer and exporter jointly and severally, to penal action under the Foreign Trade (Development and Regulation) Act, 1992.
Where these paragraphs sit
Handbook paragraphs are procedure issued by the Director General of Foreign Trade, as explained in our article on section 6 of the FTDR Act. The Policy they serve is made under section 5 of the Act, set out in our article on section 5 of the FTDR Act. Paragraph 2.53 itself names the Act for penal action, which is dealt with in our article on section 11 of the FTDR Act on contravention, penalty and settlement.
Paragraph 2.52: recognition of a PSIA
Paragraph 2.52 has seven sub-paragraphs.
| Sub-paragraph | Rule |
|---|---|
| (a) | Applications for recognition are made online on the DGFT website, with the applicable fee under Appendix 2K of the Policy |
| (b) | An Inter-Ministerial Committee considers the online applications |
| (c) | Recognised agencies are notified under Appendix 2G for three years; after three years a fresh online application is needed |
| (d) | The agency issues the PSIC in the format of Appendix 2H, generating it with the facility on the DGFT website |
| (e) | Inspections in countries where the agency has no full-time equipped branch office, but which fall within its area of operation, may be done by deputing inspectors, with prior intimation to DGFT and details of the visit furnished in the PSIC |
| (f) | The initial online application may be made without a Bank Guarantee; it is not rejected only for that reason, but a bank guarantee or an equivalent financial instrument must be submitted before notification |
| (g) | An application to amend the instruments or the areas of operation of an existing agency is made online |
Paragraph 2.52(f) refers to a serial number of ANF-2L, the Aayat Niryat Form for the application. This article describes nothing inside that form, and it states no fee, because the amount sits in Appendix 2K and is not printed in the paragraph.
Two practical points follow. A PSIA works only while it stays notified under Appendix 2G, so the end of the three-year period without a fresh application ends the notification. An importer who is relying on a PSIC should check that the issuing agency was notified under Appendix 2G at the time of the inspection. Second, the sub-paragraph (e) route is the only way the paragraph allows inspection in a country without a full-time equipped branch, and the paragraph attaches a duty of prior intimation to it.
Paragraph 2.53: responsibility and liability
Liability of the agency, paragraph 2.53(a)
If there is a mis-declaration in a PSIC or in the online application for recognition, the PSIA is liable to penal action under the Foreign Trade (Development and Regulation) Act, 1992, as amended, in addition to suspension or cancellation of recognition.
Joint liability of importer and exporter, paragraph 2.53(b)
The importer and exporter are jointly and severally responsible for making sure the material imported matches the declaration in the PSIC. In case of mis-declaration they are liable for penal action under the Act. This is a point many scrap buyers miss: the certificate does not shift the liability to the agency. The importer who accepts a consignment that does not match its certificate remains answerable.
How the certificate is produced, paragraph 2.53(c)
The PSIA may generate and upload the PSIC online through the DGFT website. It must be generated after the required inspection has been carried out. Video or photographic evidence is uploaded during the process, and an attested copy of the PSIC in pdf format is uploaded by the agency. The certificate is in Appendix 2H.
Evidence to be captured, paragraph 2.53(d) and (e)
Paragraph 2.53(d) requires photographs or video of the inspection, capturing these details.
- The place of inspection with the PSIA inspector (mandatory) and representatives of the exporter or importer if available (optional), with time and date, at least one photograph or clip.
- The testing instrument or instruments used.
- The stuffing of containers, showing the container number, at least one photograph or clip per container.
- The sealing process, at least one photograph or clip per container.
- One photo of the inspector with an empty container in the background having only one door closed, with the container number clearly readable, and another with the sealed container bearing the same number.
- A photo of the instrument used, as indicated at the serial number of the PSIC, taken along with the container seal so that the seal number and the instrument serial number are both visible.
Under paragraph 2.53(e), the photographs and clips are uploaded on the DGFT website by the PSIA at the time of issuing the PSIC.
Paragraph 2.56: inspection and certification agencies for capital goods
Paragraph 2.56 is separate and short. Customs or any other Central or State Government authority may use the services of the Inspection and Certification Agencies listed in Appendix 2I for certifying the residual life, and the valuation or purchase price, of capital goods. It is a facility for the authority, not a duty of the importer, and it does not say that an importer must use those agencies. The related Policy rules on second-hand capital goods are covered in our article on paragraph 2.31 on second hand goods. Do not confuse the agencies of Appendix 2I with the PSIAs notified under Appendix 2G; the paragraphs keep the two lists apart, and this article names no agency from either.
A worked example
Sundar Metals Private Limited, an invented importer, buys shredded scrap from an overseas supplier. The PSIC from the supplier's inspection agency shows radiation within natural background. When the container is opened, the importer finds sealed cartridges. Under paragraph 2.53(b) the importer and the exporter are jointly and severally responsible for the match between the material and the declaration, and both are open to penal action under the Act; the agency faces the same under paragraph 2.53(a), plus suspension or cancellation of recognition. The photographs of container number and seal required by paragraph 2.53(d) are the first thing an examiner would compare with the consignment.
Need help with an import that needs an inspection certificate?
When a scrap or restricted import depends on a PSIC, the first question is whether your item needs an authorisation at all. Our team can check the condition and the papers with you through our restricted items import and export licence service.
Key takeaways
- A PSIA is recognised online by an Inter-Ministerial Committee and notified under Appendix 2G for three years (paragraph 2.52(b) and (c)).
- The PSIC is in the format of Appendix 2H and is generated on the DGFT website after inspection (paragraphs 2.52(d), 2.53(c)).
- Photographs or video of the place, instrument, stuffing and sealing must be uploaded with the PSIC (paragraph 2.53(d) and (e)).
- Importer and exporter are jointly and severally responsible for the match with the PSIC (paragraph 2.53(b)).
- Paragraph 2.56 allows Customs and Government authorities to use Appendix 2I agencies for residual life and valuation of capital goods.
Read next
- Paragraphs 2.32 and 2.33 of the Foreign Trade Policy, 2023: import of metallic waste and scrap
- Paragraphs 2.34 and 2.35 of the Foreign Trade Policy, 2023: lease financing, legal undertaking and bank guarantee
- FTP 2023: the legal framework, and FTP against HBP
- Section 11(5) to (9) of the FTDR Act: recovery of penalty, confiscation and redemption
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.