Pre-Shipment Inspection

Pre-Shipment Inspection (PSI) refers to the procedure in which the importer or a third-party inspection agency entrusted by the importer inspects and verifies the quality, quantity, packaging, specifications, etc. of the goods before shipment. Its use scenarios include: bulk commodity transactions, government procurement, letter of credit settlement requirements, and compliance with import country regulations (such as mandatory PSI in some African and Middle Eastern countries), etc. Notes: The inspection should be completed before shipment, and the inspection report is usually one of the documents for negotiation; if the inspection fails, it may result in inability to ship or refusal of payment under the letter of credit. Unlike "inspection upon arrival," PSI is conducted before shipment, which can identify problems in advance and reduce risks; unlike "factory audit," PSI targets specific batches of goods rather than the production system. The difference also lies in: PSI is often performed by independent inspection agencies (such as SGS, BV), and the costs may be borne by the buyer and seller as agreed.