One element in the supply chain is to verify what you bought before shipping it, which is called pre-shipment inspection (PSI). These examinations are made to be certain your products meet quality standards, technical specifications, contractual requirements and ensure they are ready to be sent to their destination market.
A pre-shipment inspection can be arranged at any stage: at the manufacturer’s warehouse, when the importer receives the items, or when the supplier prepares the final shipment for sale.
The procedure is simple, but there are many subtle points that we are going to take a look at to understand how a pre-shipment inspection works.
What Is Pre-Shipment Inspection?
Pre-shipment inspection allows you to fix any problems before receiving or paying for the product; due to inspectors checking items before shipping. These procedures occur once 100% of the order is ready to eliminate the risks. This is the last opportunity to take corrective action before your product is shipped, making it an effective tool to protect your product against costly import risks.
A number of obligations were included in the “Agreement on Pre-Shipment Inspection,” based on the World Trade Organisation (WTO); stating that pre-shipment investigations should be applied according to the following principles:
- The procedure should be non-discriminatory
- Avoidance of delays
- Pre-shipment inspection should be transparent
- Protection of confidential business information
- There should be no conflict of interest between the parties.
- Price verification based on the price of identical or similar products in the country of exportation
Business photo created by senivpetro – www.freepik.com
The purposes of a pre-shipment inspection
The pre-shipment inspection usually covers functionality, performance, durability, overall appearance, and dimensions. Some of its purposes are:
- Examine the quality, quantity, and loading of the shipment.
- Check products for any defects.
- Ensure products meet the safety requirements.
- Dimensional inspection.
- Documentation review.
- Packing and marking checks.
- Visual inspection.
- Witness sample measurements in factory.
- Check for appropriate handling during loading.
- Verify the stowing, fastening, and wedging on the mode of transport.
- Issue report for import and billing.
In CARGO CARE SERVICES our pre-shipment inspection offers you independent and professional verification of the quality, quantity, marking, packing, and loading of your shipments, helping you meet quality standards, technical specifications, and contractual requirements.