Entrusted Inspection refers to a buyer or seller commissioning a third-party inspection agency (such as SGS, BV, Intertek, etc.) to inspect goods and issue an inspection report or certificate. It is common in international trade when the buyer wants to ensure that the quality, quantity, packaging, etc. of the goods comply with contract requirements, or when the seller commissions an inspection to prove that the goods are qualified. Use cases include: pre-shipment inspection, post-arrival inspection, in-process inspection, etc. Points to note: The commissioning party must specify the inspection standards, time, place, and who bears the costs; the inspection report usually serves as a basis for negotiation or claims, but unless stipulated in the contract, it is not legally binding. Difference from statutory inspection: statutory inspection is a government-mandated requirement, while entrusted inspection is a voluntary commercial act. Difference from self-inspection: entrusted inspection is conducted by an independent third party, which carries greater credibility. Foreign trade practitioners should understand that the effectiveness of an entrusted inspection depends on the contract terms, and should pay attention to the inspection time limit and sample representativeness.
📝 Examples
1. The buyer required in the contract that the seller commission SGS to conduct a quality inspection of the goods before shipment, with the inspection costs borne by the buyer. (This illustrates that the buyer commissions a third-party inspection and the cost responsibility is clear.)
2. The seller commissioned Intertek to conduct an entrusted inspection of a batch of exported electronic products and used the inspection report to negotiate payment with the bank. (This illustrates that an entrusted inspection report can serve as one of the documents for negotiation.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner