Inspection of Goods

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📖 Detailed Explanation

Inspection of Goods refers to the inspection by the buyer or a third-party inspection agency entrusted by the buyer, before shipment or after arrival of the goods, of the quality, quantity, packaging, etc. of the goods to confirm whether they comply with the contract provisions. It is commonly seen under trade terms such as FOB and CIF. To prevent the seller from substituting inferior goods, the buyer usually arranges inspection before shipment, and the goods may be loaded only after passing inspection. Inspection costs are generally borne by the buyer, but if the contract stipulates that they are borne by the seller, such stipulation shall prevail. Inspection of Goods and "Inspection" are often used interchangeably, but inspection of goods focuses more on on-site examination before shipment, while inspection may include final inspection after arrival. Points to note: the inspection standards should be clearly specified in the contract (e.g., by sample, by specification); the inspection time must be coordinated with the shipping schedule to avoid delays; the inspection report is an important basis for claims. Difference from "Re-inspection": re-inspection is the buyer's second inspection after arrival, while inspection of goods usually refers to pre-shipment inspection.

📝 Examples

1. The buyer entrusts SGS to inspect the batch of garments before shipment, and shipment can only be arranged after the inspection passes. (Note: Pre-shipment inspection and shipment only after passing the inspection is a common procedure.) 2. The contract stipulates that the seller shall notify the buyer 7 days in advance for inspection. If quality nonconformity is found during inspection, the buyer has the right to request a price reduction or reject the goods. (Note: The obligation to notify for inspection and the consequences of failed inspection.)

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