Inspection Fee

Inspection Fee refers to the cost incurred in foreign trade transactions when a third-party inspection agency (such as SGS, BV, Intertek) or a buyer-designated representative inspects the goods for quality, quantity, packaging, etc. Usage scenarios include: pre-shipment inspection (PSI) stipulated in the contract, buyer requiring an inspection certificate, or a letter of credit requiring an inspection report. Precautions: First, clarify who bears the cost—usually the buyer, but it can be negotiated for the seller to pay, and this must be stated in the contract. Second, inspection standards (such as AQL sampling level) and inspection time and place must be agreed in advance to avoid extra costs. Third, if failed inspection leads to re-inspection, the allocation of costs is prone to disputes, so it is advisable to agree on liability. Difference from other terms: Inspection Fee is different from 'Commodity Inspection Fee,' which specifically refers to the fee charged by the China Entry-Exit Inspection and Quarantine Bureau for legally inspected commodities; it is also different from 'Testing Fee,' which targets specific performance tests. Foreign trade practitioners should consider whether the inspection fee is included when quoting to avoid profit loss.