Procedure and Steps in Pre-Shipment Inspection and Quality Control

Pre-shipment inspections play a crucial role in ensuring that your goods meet quality, safety, and compliance standards before they are sent off for delivery. This process involves thoroughly checking items to confirm that they match the buyer's requirements, helping prevent costly mistakes and delays. 

Whether you're an importer or exporter, pre-shipment inspections offer peace of mind by verifying that the quality, quantity, and packaging are just right. It's all about protecting your business and ensuring smooth, worry-free transactions.

In this blog, we'll walk through the essential steps of the pre-shipment inspection process and how it can help your business.

What is a Pre-Shipment Inspection?

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Pre-shipment inspections were officially introduced in 1994 as part of efforts to improve international trade standards under the General Agreement on Tariffs and Trade (GATT). This process is a quality control measure done to ensure that goods meet the buyer's requirements before they are shipped. 

The inspection covers various aspects like functionality, performance, overall appearance, and dimensions. 

Accredited inspection agencies send trained inspectors to conduct these inspections by selecting random samples of the products using universally accepted statistical sampling methods. (ANSI/ASQC Z1.4 (ISO 2859-1))

 By identifying issues before payment and shipping, pre-shipment inspections protect buyers and ensure that they do not pay for defective or sub-standard goods.

Also Read: 10 Required Pre-Shipment Documents for Export Procedure and Shipping Process

Now, let’s take a closer look at the detailed steps involved in the pre-shipment inspection process!

What are the Steps in a Pre-shipment Inspection?

The inspection of goods is done based on a pre-shipment inspection checklist that is made beforehand. Here’s what you can expect from a standard inspection process:

Step-1: Inspection Visit

The inspector visits the manufacturer’s warehouse or production site. This is where the inspection happens, making sure that everything is checked right where the goods are produced. The date and time are agreed upon in advance to make sure the products are ready for inspection.

Step 2: Quantity Verification

The inspector counts the cartons and product units to verify that the correct number has been produced and packed according to the order.

Step 3: Random Sampling

Instead of checking every single item, the inspector randomly picks samples from the batch using statistical sampling procedures, like the ANSI/AQL (Acceptable Quality Level). This ensures the inspection is unbiased and reflects the overall quality of the shipment.  The number of items the inspector picks is usually agreed upon in the contract between the manufacturer or importer and the client.

Step-4: Product-Specific Testing

After samples are selected, specific tests are performed based on the type of product. For electronics, this could include checking charging time or functionality. These types of tests could take a lot of time, so inspectors start with these. 

Step-5: Packaging and Label Checks

Even if the products are perfectly made, poor packaging can cause damage during shipping. So, in this step, inspectors check the packaging conformity and labelling of the goods. They look for any mistakes that could cause trouble, like mislabeling, which can lead to expensive delays and issues with authorities.

Step-6: Visual Inspection

A visual check is done to spot workmanship-related defects, like missing screws, dents, or chipped paint. These defects are then classified as minor, major, or critical based on criteria agreed upon beforehand.

Step-7: Functional and Safety Testing

In this step, the items are tested to ensure that they have no functional defects and that they work as intended. For example, if testing a chair, the inspector may sit on it to check its stability and durability, or if it is a blender, they might check if it runs at the right speed.

Additionally, safety tests are performed to ensure the products don't pose any risks to users or the environment. (such as electrical safety, mechanical safety, and chemical safety checks.)

Step-8: Physical Verification

Under this step, the inspector performs volumetric verification by measuring physical attributes like size, weight, length, colour, and dimensions of the products. This ensures that the shipment meets the necessary standards for the order.

Step-9: Barcode Verification

A barcode verification is done to ensure all information is correctly captured, readable, and properly placed. The inspector checks that barcodes are legible when scanned, contain the right product and destination details, and are durable enough to withstand international shipping.

Step-10: Carton Drop Test

In this step, cartons are dropped from a specified height following internationally accepted protocols like ISTA 1A to test the durability of the packaging. This drop checks whether the products inside can withstand the transit without damage.

Step-11: Inspection Report

After the inspection, a detailed report is generated. This report typically includes:

• A summary of the overall merchandise quality.
• Details of any significant defects or issues found during the inspection
• A rundown of the tests that were performed on the products
• Visual evidence and documentation to support the findings
• Optional comments from the inspector

Additionally, the shipment is given a pass, fail, or hold status based on the inspection results, determining whether it can proceed or requires further action.

Also Read: Different Types of Packaging Materials and Their Uses

What are the Methods of Pre-shipment Inspection?

There are three major methods for conducting a pre-shipment inspection, each for different needs and situations. They are:

Consignment-Wise Inspection

In this method, every consignment packed for shipment is thoroughly inspected by recognised Export Inspection Agencies before it can be sent out. It is done using statistical sampling methods.

Once the shipment meets the required quality standards, a pre-shipment inspection certificate is issued, which includes essential details like the validity period for the export.

It’s important to note that no shipment of regulated goods can be exported without this certification.

In-Process Quality Control (IPQC)

In-process quality control refers to inspecting products during different stages of production rather than waiting until everything is completed. This method is commonly used for items like paints, linoleum, ceramics, and sanitary wares, allowing manufacturers to catch and fix any issues early. 

Continuous process industries have the option to become approved as "export-worthy" units as they have the necessary infrastructure to produce standard-quality products.  Once approved, they can conduct their own inspections and issue a declaration. Based on this declaration, they receive a pre-shipment inspection certificate.

Self-Certification

Self-certification, recently introduced in India, allows manufacturers with good in-house quality control to certify their own products for export. It gives them the responsibility to make sure their products meet the required standards before shipping.

When to Schedule a Pre-Shipment Inspection

Scheduling a pre-shipment inspection (PSI) at the right time is critical to ensuring product quality and on-time delivery. Here are a few factors to consider when deciding the best time for an inspection:

1. Production Timeline: Plan the PSI when at least 80% or 100% of the ordered units are produced. This ensures that the inspectors are reviewing the final product, not just cherry-picked samples.
2. Time for Corrections: Schedule the inspection 1-2 weeks before the shipping deadline. This gives you enough time to fix any problems and re-inspect the products, if necessary.
3. Seasonal Considerations: Check for seasonal considerations, such as busy manufacturing periods or holidays, that could affect production, inspection, and shipping timelines.
4. Customs and Regulations: Be aware of any customs or regulatory deadlines that could impact the inspection process so that compliance is met without delays.

By factoring in these points, you can ensure a smooth pre-shipment inspection and avoid last-minute complications.

Now that you understand the process, let's understand why pre-shipment inspections and quality control are critical for successful exports.

What is the Significance of Quality Control and Pre-Shipment Inspection in Export?

The primary purpose of quality control and pre-shipment inspection is to ensure that products comply with the requirements of the purchase order or letter of credit before they are shipped for export. Here are some of the benefits this inspection offers:

• Ensures the quantity and metrics of products are correct.
• Reduces the risk of delivery delays and defective /damaged products.
• Confirm products meet your specifications and safety standards.
• Offers peace of mind by ensuring successful order completion.
• Lowers the chance of products being returned.
• Boosts your company’s ROI in the long run.
• Helps prevent poor-quality products from reaching the market.
• Saves time, money, and resources by avoiding product recalls after exporting.
• Avoids legal issues related to poor quality control.
• Protects your reputation and reduces financial losses.
• Provides a pre-inspection certificate that is mandatory for customs clearance in many countries.

Quality control and pre-shipment inspection are essential in ensuring smooth, compliant, and profitable export processes.

Pre-Shipment Inspection Process in India

To promote quality exports that meet international standards, the Government of India introduced the Export (Quality Control and Pre-Shipment Inspection) Act in 1963. This Act set up the Export Inspection Council (EIC), which monitors the quality of over 1,000 export commodities, such as food, fishery products, minerals, and rubber.

The EIC established five Export Inspection Agencies (EIAs) in Mumbai, Kolkata, Kochi, Delhi, and Chennai. These agencies cover various regions across India, managing inspections and overseeing quality control. 

Additionally, there are 42 inspection agencies for minerals and iron ore and 14 testing labs for food products that follow international norms like ISO 17020 and ISO 17025.

EIC’s work guarantees that Indian exports meet importing countries' quality and safety requirements so that Indian goods win hearts and stand out in global markets.

Pre-shipment inspections aren’t the only type available. Let’s compare them with post-shipment inspections.

Post-Shipment Inspection vs. Pre-Shipment Inspection

Here’s a quick comparison table:

Both these inspections play a major role in reducing the risk of quality and quantity issues in international trade

How does Pazago Help with Shipment Inspection?

Pazago provides a reliable and easy way to manage shipment inspections so that your products meet quality standards at every stage. Here’s how Pazago helps:

• Reliable Quality Inspections: Every product is thoroughly inspected to meet your standards.
• Network of Thousands of Inspectors: With Pazago, you have access to thousands of experienced inspectors worldwide. No matter where you are, there are inspectors ready to help.
• Raw Material Inspection: Catch any issues with materials early in the process.
• Inventory Count & Audit: Stay on top of your stock with accurate inventory checks.
• Pre-shipment & In-line Inspections: Identify potential issues before products leave your factory with Pazago’s thorough pre-shipment inspections.
• Container Loading Check: Ensure your products are safely loaded and ready for the journey.

Need more help? You can always talk to an expert for personalised guidance with your shipment inspections.

Why Choose Pazago for Your Shipment Needs

With Pazago, you get more than just shipment inspections. It’s an all-in-one platform that simplifies every aspect of your shipping process. Here’s a brief picture of what you get:

1. Centralised Inbox: Keep all stakeholders in the loop and avoid miscommunication with a shared inbox.
2. Fully Digital Cargo Insurance: Get safe and comprehensive cargo insurance with ICICI Lombard, all in a fully digital process.
3. Real-time Alerts: Receive 24/7 updates and complete visibility on your cargo’s location every step of the way.
4. Easy Global Payments: Enjoy the best forex rates on all international payments, no matter the currency or region.
5. All-in-One Supply Chain Management: Manage everything in one place—no more jumping between emails, spreadsheets, or other logistic tools.
6. Automated EXIM Operations: Streamline and automate your export-import process from purchase order to delivery, cutting down on manual tasks.

This, and a lot more! When you get a platform that handles all your EXIM needs in one place, why go anywhere else?

Ship with ease, grow with confidence—start with Pazago today!

Conclusion

Pre-shipment inspection services are vital in ensuring that only top-quality products are shipped. This process helps importers, traders, wholesalers, and customers alike by maintaining high standards throughout the supply chain.

By catching any defects or issues early and providing detailed reports, you can avoid costly mistakes, reduce the risk of returns, and ensure smooth transactions with buyers. Furthermore, you can safeguard your business and strengthen your reputation in global markets.

Using professional inspection services like those offered by Pazago gives you peace of mind and ensures that your shipments are always up to standard. Their network of inspectors worldwide will help verify that your products follow quality guidelines and meet regulatory and legal compliance. 

This way, you can focus on reaching your true business potential.

Ensure every shipment meets the mark—partner with Pazago now!

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