DGFT Announces 7-Day Transitional Relief for Backlog PSICs and Mandates Strict 2-Day Issuance Timeline

The Directorate General of Foreign Trade (DGFT), operating under the Department of Commerce, Ministry of Commerce & Industry, has introduced critical procedural relaxations and stringent new timelines for the issuance of Pre-Shipment Inspection Certificates (PSIC). Through the promulgation of Trade Notice No. 28/2026-27 dated September 16, 2026, the regulatory authority has addressed operational bottlenecks faced by Pre-Shipment Inspection Agencies (PSIAs) while simultaneously tightening the geographical and temporal compliance parameters for future inspections.

This latest directive serves as an essential modification to the digital enhancements previously rolled out via Trade Notice No. 22/2026-27 dated 25.08.2026. By offering a brief transitional window to clear legacy backlogs and establishing a rigid two-day turnaround for new certificates, the DGFT aims to balance trade facilitation with rigorous security and compliance oversight in cross-border transactions.

Understanding the Regulatory Context of PSIA and PSIC

To fully grasp the implications of these trade notices, it is crucial to understand the role of the PSIC framework in India's import ecosystem. The importation of specific categories of goods—most notably metallic scrap—requires mandatory pre-shipment inspection to ensure that the consignments are entirely free from radioactive materials, explosives, and other hazardous substances.

The DGFT officially recognizes specialized entities known as Pre-Shipment Inspection Agencies (PSIAs) to conduct these critical assessments at the country of origin before the cargo is loaded for transit to India. Upon successful verification, the PSIA issues a Pre-Shipment Inspection Certificate (PSIC), which the importing assessee must subsequently present to the Customs authorities to secure the clearance of the goods.

The Catalyst: System Restrictions under the August 2026 Directive

In an effort to digitize, monitor, and streamline the inspection ecosystem, the DGFT introduced significant IT module enhancements through Trade Notice No. 22/2026-27 dated 25.08.2026. While these technological upgrades were designed to curb fraudulent practices and ensure real-time compliance, the immediate enforcement of system-level restrictions inadvertently created an administrative hurdle.