Inspection Process

Inspection Process refers to the standardized steps in foreign trade transactions whereby the buyer or a third-party inspection agency commissioned by the buyer inspects the quality, quantity, packaging, etc. of the goods delivered by the seller. This process typically includes: applying for inspection, scheduling the time, on-site sampling, testing, issuing a report, and handling disputes. It is commonly used in letter of credit settlements, FOB/CIF contracts, or when the buyer requires pre-shipment inspection (PSI). Points to note: inspection standards (e.g., ISO, AQL), who bears the costs, inspection location (factory or port of shipment), and how non-conformities are handled must be clearly defined. Unlike an 'Inspection Report,' the Inspection Process emphasizes operational steps rather than the resulting document; compared with 'sampling inspection,' the Inspection Process is more systematic and may include full inspection or batch-by-batch inspection. Foreign trade practitioners should agree on the inspection process in the contract in advance to avoid rejection or claims caused by differences in standards.