International Business - II

Question

Why is it necessary for an export firm to go in for pre-shipment inspection?

Answer

To maintain the quality of goods to be exported, Government of India has taken many steps. One such step is compulsory inspection of goods by a competent agency to ensure the quality and other related aspects of the goods to be exported. In this regard, government of India has passed Export Quality Control and Inspection Act, 1963. In the product to be exported comes under such as category, the exporter needs inspection certificate from the agency designated by the government of India. Such an inspection is not compulsory incase the goods are being exported by star trading houses, trading houses, export houses, industrial units set up in export processing zones / special economic zones and 100% export oriented units.

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