
Pre-shipment inspection is a crucial step in ensuring the quality and integrity of goods before they're shipped out. This process helps identify defects, damages, or other issues that could impact the customer experience.
By conducting a thorough inspection, you can catch problems early on and avoid costly delays or returns. According to section 3 of the article, a pre-shipment inspection can save up to 70% of potential losses due to defects or damages.
A well-planned inspection process can also help you improve your supply chain efficiency and reduce the risk of product recalls. By identifying and addressing issues proactively, you can maintain a positive reputation and build trust with your customers.
Pre-shipment inspection can be conducted on-site, at a warehouse, or even remotely using digital tools.
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What Is PSI?
A pre-shipment inspection (PSI) is a quality control process that ensures your products meet your specifications before they're shipped.
At least 80% of your order needs to be complete for a PSI to take place.
An inspector visits the factory and uses industry-standard processes to comprehensively review and test your product.
You'll be provided with a full report, accessible through an online platform.
Pre-Shipment Process
The pre-shipment process typically begins with the importer opening an import document or license, which triggers the inspection process.
The importer then informs the inspection service in the country of import of a pending shipment, and either pays for the inspection up front or pays a percentage based on the value of the commercial invoice, depending on the terms of the importing country's inspection contract.
The inspection company contacts the exporter to arrange a date, time, and location for inspection, and requests all required shipping documents and price information (invoices).
A "Clean Report of Findings" is issued confirming the shipment's value, customs classification, and clearance, once all final documents are received from the importer and exporter, and no discrepancies are noted during the inspection.
Here is a step-by-step overview of the typical steps in the inspection process:
- The importer opens an import document or license.
- The importer informs the inspection service in the country of import of a pending shipment.
- An inspection order is forwarded to the inspection company office in the country of export.
- The inspection company contacts the exporter to arrange date, time, and location for inspection.
- The inspection is performed.
- A “Clean Report of Findings” is issued confirming the shipment’s value, customs classification, and clearance.
- The goods are shipped to the importing country.
Process
The pre-shipment process can be a bit complex, but it's essential to understand the steps involved to ensure a smooth shipment.
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The process typically starts with the importer opening an import document or license, which triggers the inspection process.
The importer informs the inspection service in the country of import of a pending shipment, and either pays for the inspection up front or pays a percentage based on the value of the commercial invoice, depending on the terms of the importing country's inspection contract.
An inspection order is forwarded to the inspection company office in the country of export, which then contacts the exporter to arrange a date, time, and location for inspection.
The inspection company requests all required shipping documents and price information (invoices) from the exporter, who must provide these documents in a timely manner to avoid demurrage or other penalties.
Here are the typical steps in the inspection process:
- The inspection is performed.
- Products are checked for specifications, workmanship, dimensions, and packing.
- Discrepancies are noted and addressed.
- A “Clean Report of Findings” is issued confirming the shipment’s value, customs classification, and clearance.
- The goods are shipped to the importing country.
- The importer uses the inspection report to get the imported goods released from customs.
The entire process can be complex, but with a clear understanding of the steps involved, you can ensure a smooth and successful shipment.
Packaging
Packaging is inspected to ensure that it meets specifications, including inner and outer packaging, export carton shipping markings, dimensions, and weight.
Results of the packaging inspection are provided in a report, which also checks for the presence of vent holes and mold prevention units when necessary.
Packaging is a critical aspect of the pre-shipment process, as it can affect the safety and quality of the goods being transported.
In international trading, clients rely on suppliers to guarantee the conformity of the ordered goods, which is why packaging inspection is a crucial step in the process.
The total amount of goods and packing is also checked to ensure accuracy and completeness, which is important for both the buyer and the seller.
Pre-Shipment Inspection Methods
Inspections are usually carried out at the production facility, where a specific procedure is followed for sampling.
A pre-shipment inspection is carried out according to a procedure that can be adapted for different importers, suppliers, and types of merchandise.
QIMA inspectors randomly select a sample of products for inspection, following the ANSI/ASQ Z1.4-2008 sampling standard.
A detailed report is provided to the client on the same day the inspection is carried out, giving them a chance to decide whether to accept or reject an order.
Pre-designed inspection checklists are available, suitable for different products, which can be used as-is or modified to fit client needs.
Inspections are tailored to fit client needs and specific products, with the option to add particular checks or develop a completely new checklist.
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Verification and Testing
A pre-shipment inspection is a thorough examination of your products before they're shipped out. Qima inspectors review workmanship quality following standardized checkpoints or customized checklists.
Quality Verification - General Conformity to Specifications is a crucial part of the inspection process. This involves checking products against client-provided samples and specifications to ensure they meet basic aspects of conformity.
Inspectors carefully check color, construction and materials, product dimensions, and artwork and labels. Detailed results are provided in the report, including checks of quality, spelling, fonts, boldness, colors, dimensions, positioning, and alignment.
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Product-specific tests can be carried out, including checks related to specific areas of quality. These tests can be customized to meet client requirements. Examples of product-specific tests include checks on buttons, zippers, and other accessories for garments, apparel, and footwear.
Some mechanical safety tests can be performed during a pre-shipment inspection, such as checking for sharp edges or parts that could pinch or entrap appendages. However, more thorough laboratory tests may be required to import to certain markets.
Electrical and electronic products must be tested to ensure they comply with safety regulations. Some electrical safety tests can be carried out onsite during an inspection, including flammability tests and dielectric withstand tests.
Here are some examples of product-specific tests that can be carried out:
Inspectors are highly trained product experts who can help ensure your products meet your specifications. They can help you take corrective action before your production order is finalized, preventing returns and protecting your brand's image.
Pre-Shipment Requirements
Pre-Shipment Requirements can be a complex and ever-changing landscape. Some countries may require pre-shipment inspections (PSI) for all imported products, regardless of value.
Angola, Bangladesh, and several other countries currently require or request PSI for various reasons, including preventing under or over invoicing and substandard goods from entering their country. Governments may also wish to determine the value of a shipment.
In some cases, PSI regulations change often, and contracts are reviewed periodically. Exporters can contact their freight forwarders for more information on current regulations.
When Is Required?
Pre-shipment inspections may be required by the government of the importing country to prevent under or over invoicing and to ensure that goods meet their standards. This is done to prevent substandard goods from entering their country.
Some countries require pre-shipment inspections for all imported products, regardless of value. However, most countries on the list request inspections for shipments above a certain value.
Countries that currently require or request pre-shipment inspections include Angola, Bangladesh, and Benin, among others. You can check if your country is on the list.
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In some cases, a country may require pre-shipment inspections only for certain types of goods. For example, Kuwait requires PSI for regulated products valued at more than $3,000.
Here's a list of some countries that require or request pre-shipment inspections:
- Angola
- Bangladesh
- Benin
- Burkina Faso
- Burundi
- Cambodia
- Cameroon
- Central African Republic
- Comoros
- Republic of Congo (Brazzaville)
- Democratic Republic of Congo (Kinshasa)
- Cote d'Ivoire
- Ecuador
- Ethiopia
- Guinea
- India
- Indonesia
- Iran
- Kenya
- Kuwait
- Liberia
- Madagascar
- Malawi
- Mali
- Mauritania
- Mexico
- Mozambique
- Niger
- Senegal
- Sierra Leone
- Togo
- Uzbekistan
Keep in mind that PSI regulations change often, so it's essential to stay informed and review contracts periodically.
Who Pays
Pre-shipment inspections are typically performed by contracted private organizations. These organizations can be selected by the importer from a short list, but sometimes one firm is appointed to carry out inspections for a given country on an exclusive basis.
The most widely used private inspection companies are Bivac/Bureau Veritas, Cotecna, and others. They can be contacted for further information.
Importers can expect to pay for the inspection costs themselves, unless the government of the importing country covers these expenses. In some cases, the inspection agency may invoice the seller for supplementary inspection visits.
The costs associated with presenting the goods for inspection are the responsibility of the seller. This includes unpacking, handling, testing, sampling, and repackaging the goods.
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Reporting and Dispute Resolution
After a pre-shipment inspection is completed, you'll receive a detailed report the same day. The report includes an overview of key findings, a detailed account of the inspection results, and supporting pictures.
The report is easily accessible through your online account, and it will also give you an overall pass/fail assessment. This report will help you understand the inspection findings and identify any defects.
If a disagreement arises on the findings of the pre-shipment inspection, you should negotiate a resolution with the inspection company. However, if you're exporting to a World Trade Organization (WTO) member country, the WTO Agreement on Pre-shipment Inspection outlines the responsibilities of the exporter and the inspection company.
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The Reporting Procedure
The Reporting Procedure is a crucial step in the pre-shipment inspection process. A report is compiled with a pass/fail result, along with an overview of key findings and a detailed account of the inspection results and supporting pictures.
This report is released on the same day that the inspection is carried out, so you can expect to receive it promptly.
The report will detail the inspection findings, including photos of any defects, and give an overall pass/fail assessment.
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Resolving Problems or Disagreements
If a problem or disagreement arises on the findings of the pre-shipment inspection, a resolution to the discrepancy should be negotiated with the inspection company.
Exporters shipping to WTO member countries have additional protections under the WTO Agreement on Pre-shipment Inspection, which requires the inspection company to appoint an appeals official.
The Agreement also spells out the responsibilities of the exporter and the inspection company, providing guidelines for the inspection process.
Detailed information on the Agreement is available online at http://www.export.gov/tcc or by contacting the Office of Multilateral Affairs within the Department of Commerce at Tel: (202) 482-0603.
Pre-Shipment for Specific Products
Pre-shipment inspection for specific products is crucial to ensure compliance with safety regulations and quality standards. Qima checks are highly customizable, allowing for specific checks to be carried out as per client request.
Inspectors will usually perform various product-specific tests for garments, apparel, and footwear. These can include detailed checks related to specific areas of quality, such as buttons, zippers, and other accessories, which can be checked with pull tests, fatigue tests, and stretch tests.
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For textile products, Qima has extensive experience and offers a comprehensive range of textile-specific tests. Inspectors can check the weight and composition of fabric against a client's specifications, as well as seam strength and notify a client of the number of stitches per inch for the main seam.
Mechanical safety tests are often required for products with moving parts that could potentially cause injuries. Inspectors can check for sharp edges or parts that could pinch or entrap appendages, as well as safety-critical components, such as screws and hinges.
However, some mechanical safety tests can only be performed in a laboratory, and laboratory tests are required to import to certain markets. Electrical and electronic products must be tested to ensure they comply with safety regulations, which can be performed under laboratory conditions.
Some electrical safety tests can be carried out onsite during an inspection, including:
- Flammability tests
- Dielectric withstand (hi-pot) tests
- Earth continuity tests
- Critical component (CDF: Construction Data Form) checks
In the case of agricultural and food products, several agencies within the U.S. Department of Agriculture provide inspection services when certificates are required to clear products through overseas customs.
Pre-Shipment Tools and Services
QIMA offers an intelligent online platform to help you seamlessly manage your quality control and global supply network.
You can easily book, cancel or reschedule inspections, make payments or download your inspection reports with a few clicks.
QIMA's online platform provides a customizable dashboard with all of your quality control data, so you can identify trends and make informed decisions in real-time.
QIMA inspectors are highly trained product experts who can help ensure your products meet your specifications.
They conduct a comprehensive Pre-Shipment Inspection (PSI) that involves a series of meticulous checks, including:
- Product specifications checks:
- Other product-specific checks and tests
- Workmanship defects checks
- Product dimensions check
- Packing and packaging checks:
QIMA provides independent pre-shipment inspections for a wide range of products, including softlines, hardlines, toys, electronics, and food products.
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