Pre-shipment Inspection

Pre-shipment Inspection (PSI) refers to the act of the importer or its designated inspection agency inspecting and verifying the quality, quantity, packaging, specifications, etc. of goods before shipment. This term is commonly found in international trade contracts, letters of credit, and inspection clauses, and is especially applicable to transactions involving bulk commodities, mechanical and electrical products, consumer goods, etc. that need to ensure compliance with contract standards. Use scenarios include: the importer requires the exporter to provide an inspection report before shipment, or designates a third-party inspection agency (such as SGS, BV) to conduct inspection, as a precondition for payment or shipment. Notes: Inspection costs are usually borne by the importer, but must be clearly stated in the contract; inspection standards should be specific (such as international standards, industry standards, or samples confirmed by both parties); inspection certificates must be consistent with letter of credit requirements to avoid discrepancies. Unlike 'post-shipment inspection,' PSI is conducted before the transfer of control over the goods, effectively reducing the importer's risk; compared with 'factory inspection,' PSI focuses more on the final condition before shipment. In addition, PSI may involve the allocation of responsibilities under 'FOB' or 'CIF' terms, which must be clearly specified in the contract.