Fixed Point Inspection

Fixed Point Inspection is a common inspection clause in foreign trade contracts, referring to an agreement between buyer and seller to conduct inspection at a specific location where goods are produced or stored (such as a factory, warehouse, or port of shipment), rather than at the destination or end-user site. It is typically used for bulk commodities, machinery, or customized products, where the buyer wishes to confirm quality upon completion of production to avoid disputes after transportation. Key considerations include: specifying the inspection location, time, standards, and cost bearing; if goods are damaged during transport after passing inspection, the risk is usually borne by the buyer (unless otherwise agreed in the contract). Unlike 'port of shipment inspection,' fixed point inspection emphasizes a specific location rather than a port; compared to 'destination inspection,' it intervenes earlier, allowing the seller to make timely corrections. The difference is that fixed point inspection may occur on the production line, while port of shipment inspection only addresses the condition before loading. Foreign trade practitioners must specify in the contract the inspection agency, sampling methods, and handling of non-conformities to prevent disputes.