What is Pre-Shipment Inspection?
As the term implies, Pre-Shipment Inspection takes place before the ordered goods are shipped by the supplier to buyer. A Pre-Shipment Inspection is a step taken by trade operators (buyers, suppliers, agencies) to inspect newly manufactured products before they are shipped to buyer. A Pre-Shipment Inspection (PSI) is a random inspection comprising a detailed inspection of finished goods before shipment. It generally takes place in the manufacturer’s premises on samples randomly selected from packed ready to ship consignment according to the defined statistical sampling procedure ISO 2859-1 and AQL (Acceptance Quality Limits) or as otherwise agreed with the buyer. The inspection criteria may cover type identification, product conformity, function, marking and safety hints, quality (consistent workmanship), quantity, packaging, unit completeness and overall compliance with the agreed specification.
Pre-Shipment Inspections are officially recognized as an instrument to improve international trade standards by the World Trade Organisation (WTO). Certain countries like Bangladesh, China, India and Indonesia have mandated Pre-Shipment Inspections (PSI) for all imports while others like Mexico and Kuwait require PSI for certain type of products or based on the value of the product. Governments of these countries assert that Pre-Shipment Inspections prevent substandard goods from entering their country and preempt costly losses and very expensive and lengthy international litigation. Requirements for Pre-Shipment Inspections are sometimes spelled out in letters of credit or other purchase documents.
Why is Pre Shipment Inspection specified when goods have been made to order as per buyers specifications? Pre-Shipment Inspection removes the guess work and possibility of receiving different or substandard product or many other variables involving different aspects within the requisite specification of order and consignment. Once the ordered consignment has reached your factory/warehouse/showroom and non-conformities are found, it is too late to avoid a very expensive debate, which ends in acrimony, financial loss and delays in otherwise well laid plans. It helps ease your international transaction and ensures that goods manufactured and shipped, conform to the buyer’s exact requirements. The purpose of Pre-Shipment Inspection is to:
- Check the quantity and quality of the merchandise ready to be shipped
- Detailed product inspection to check for defects/ non-conformities
- Ensure products meet the various safety/labeling requirements of the destination market/client
- Issue Inspection/Audit Report providing information of actual findings. Once the PSI is completed, a report is compiled with a pass/fail result, and a detailed account of the inspection results. These Pre-Shipment Inspection (PSI) reports invariably provide photographic evidence of all aspects of the inspection, including all defects/non conformities found, so there are no unpleasant surprises once consignment arrives in your warehouse
- Asian Inspection assigns appropriately qualified and experienced auditors to perform inspections according to type of product to be inspected. Relevant international standards are followed, but the objective is to provide a balanced, unbiased view, while checking to ensure that your products meet specifications
All Pre Shipment Inspection are conducted in accordance with a well-defined step wise process, which begins with meeting the factory’s person responsible for coordinating PSI and shipments.
The first order of business is to get shipper’s Packing List. This is compared with the buyers Purchase Order to determine extent of consignment which is manufactured, packed and ready to ship. This physical quantity verification helps ensure that Shippers Packing List is correct.
After quantity verification Random Sampling is undertaken to draw number of packages required in accordance with the internationally accepted statistical sampling procedure defined by ANSI/ASQC Z1.4 or ISO 2859-1. Each selected carton is initialed by the inspector for verification.
The selected packages are checked for dimensional accuracy, weight conformity and if all requisite marking/labeling is in place and legible. Thereafter the packages are opened to check if contents are as per mentioned quantity and the inner packs conform to order.
The cartons are then opened and contents checked for quantity, weight, packaging and marking conformity. Thereafter actual product is checked for workmanship quality, material, dimensions, weight, color, labeling and other parameters, depending on nature of product.
All defects/non conformities are pointed out and recorded. These defects are classified as Minor, Major or Critical and form the basis of PASS or FAIL in accordance with the relevant AQL limit agreed upon between vendor and buyer. Vendors representative is shown all defects found to ensure impartiality and proper process protocol. Also to ensure there are no denials at a later stage.
The size of report may vary in accordance with the Stock Keeping Units (SKU’s) being inspected. The product remains the same however, there maybe more than one size, color or material used which adds to number of SKU’s included in the Pre Shipment Inspection Report.
If required, samples are drawn for client specified lab tests, results of which may determine acceptability or otherwise of the consignment.
Almost all products in international or even within country shipments can be subject to Pre Shipment Inspection’s (PSI), with varying degrees of intensity, depending on the buyer’s discretion. It is the cheapest, most common sense solution to prevent entry of contaminated/defective product in the supply chain at any level, thus ensuring peace of mind regarding the procurement aspect of any business.
Asian Inspection Services has been providing Pre-Shipment Inspection services since 1974 to our local and international clients in a reliable, efficient, transparent and easily understood manner. We specialize in the inspection of a broad range of products listed under the menu “Pre-shipment Inspection”.