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Pre-shipment inspection

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Pre-shipment inspection

Pre-shipment inspection

1. The emergence of pre-shipment inspection

In international trade, it is commonly known as PRESHIPMENT INSPECTION, abbreviated as PSI. Pre-shipment inspection is a measure taken by buyers in international trade to protect their own rights and interests and prevent problems before they happen, and to exclude goods that do not meet the buyer’s requirements from entering the country.

It is generated based on the needs of the buyer, that is, the buyer stipulates in the terms of the trade contract that the buyer entrusts an independent third-party inspection agency to conduct pre-shipment inspection activities on the territory of the exporting country for imported goods.

Pre-shipment inspection has long been a common practice in international trade. The basic content generally refers to the inspection of the quality, quantity, and packaging of goods before shipment, and also includes the supervision of the manufacture, loading, and lead sealing of goods. It is a way for buyers and sellers to deal with inspection rights and interests according to the agreement of the contract.

2. The main business distribution of some well-known third-party inspection companies in the world

① COTECNA: Angola, Congo (Brazzaville), Burkina Faso, Niger and Senegal, etc.

② BV: Bangladesh, Central African Republic, Congo (Kinshasa), Liberia, Angola, Cambodia and Mali, etc.

③ INTERTEK: Sierra Leone, Saudi Arabia and Kuwait, etc.

④ SGS: Algeria, Cameroon, Qatar, Ethiopia, etc.

3. General process of pre-shipment inspection

Generally speaking, pre-shipment inspection should be conducted by a third-party inspection agency commissioned by the importer. The procedure is generally as follows.

4.Precautions for export enterprises in pre-shipment inspection

① Whether the qualifications of the inspection agency meet the contract requirements. First of all, it should be noted that although some inspection companies are well-known, they may not be officially recognized in the country of import of goods or are not on the list of inspection companies accepted by the owner. Then such companies cannot provide qualified inspection reports for final customs clearance and settlement. Therefore, it is necessary to clarify with the owner which inspection companies meet the requirements at the beginning of the contract signing.

② The inspection report and its attachments need to maintain a high degree of consistency. This is also closely related to the delivery of documents under the letter of credit. Otherwise, it is easy to cause delivery of documents with discrepancies, resulting in unnecessary trouble and losses. This requires that the inspection company should carefully confirm before issuing the final inspection report. Once the formal report is issued and you want to modify it, it will directly affect the progress of customs clearance and settlement of the entire project. The final inspection report will generally be transmitted to the importing country in electronic form, and the importer will go to the local inspection agency to print the certificate for customs clearance. If CRF (Clean Report of Finding) is a document for delivery of documents under the letter of credit, the exporter should explain the situation to the relevant inspection agency in order to obtain the relevant original inspection certificate. The inspection agency should also endorse the original invoice of the exporter so that the exporter can submit the bill for negotiation.

③ Regulations and standards of the importing country When signing an international engineering project contract, the enterprise must understand the technical regulations and standards of the importing country regarding the quality of goods, and must establish quality clauses in accordance with the laws and standards of the importing country to avoid trade disputes or setbacks caused by the goods not meeting the requirements of the importing country’s regulations and standards. If there is a big abnormality, the operation should be stopped immediately and the cause of the abnormal speed of the operation should be checked, otherwise there will be leakage, grain running, engine failure and other phenomena. The installation of intelligent monitoring devices can detect abnormal conditions of the whole vehicle, check the condition of the whole vehicle in time, and ensure the quality of harvesting operations.

5. Purpose of pre-shipment inspection

The purpose of pre-shipment inspection is not to set up barriers for trade, but a means for developing countries to protect themselves. In order to avoid the risks of import trade, many importers in the world require the implementation of pre-shipment inspection, which is also increasingly common.

Therefore, pre-shipment inspection has actually become an international practice generally accepted in the world, and has played a role in safeguarding the healthy development of world import and export trade.

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