Posted by: changholt | July 20, 2010

QC — Pre-Shipment Inspections

One way to ensure your supplier is not sending you the wrong products, or the wrong packaging is to have a Preshipment Inspection.

Pre-Shipment Inspections [PSI] are inspections performed by independent companies at the point of departure of goods destined to be exported.

a.            The firm determines that the goods shipped are the ones ordered by the importer.

b.            The firm determines that the goods shipped are in the correct quantity.

c.            The firm determines that the goods shipped are sufficiently packed for an international shipment.

When the independent firm has ascertained that all of these aspects conform to the invoice, it issues a certificate of inspection to the importer. Pre-shipment inspections are sometimes requested by importers to ensure that the exporter is shipping the correct product and the correct quantity. Pre-shipment inspections are used when the importer is purchasing on a “cash-in-advance” or on a letter of credit basis. Most PSIs are requested by countries that require Pre-Shipment Inspections as part of their import process. There are several reasons for that requirement:

a.            Country wants expert opinion on classification and value of products entering its territory

b.            Country wants to fight corruption at its own points of entry

c.            Country wants estimate of currency requirements it will have in short term.  Value of shipments subject to PSI help forecast this

d.            Countries may have inspection fees funneled to themselves to gain extra revenue


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