When customers in your supply chain want quality assurance, add that extra element of trust, facilitate shipping procedures, and secure prompt payment with pre inspection reports and certificates (PSIC).
This article will help you understand the following:
- The different types of pre shipment inspection certificates and reports
- How a PSIC facilitates trade between import-export companies with quality assurance
- The standards manufacturers need to meet for PSIC
Who needs a pre shipment inspection?
- Manufacturers, buyers, suppliers and importers of consumer goods such as softlines, hardlines, electronic goods, luxury goods.
- Importers of commodities such as bulk oil shipments and scrap shipments which may be governed by local regulations.
What is a PSIC?
A pre shipment inspection certificate is a trade document issued by an independent inspection agency. The document accompanies shipments from the factory to certify that the goods conform with specifications stated on the sales contract and/or letter of credit.
The PSI report or certificate is usually included in the package of documents for the shipment such as the bill of lading, certificate of origin and packing list. A manufacturer or seller can also use the PSIC to initiate the transfer of payment from an intermediary bank.
Two types of PSIC
- Official Inspection Certificate
- Commercial Inspection Certificate / Report
- You know whether the products function as the manufacturer has promised
- You can make timely decisions based on any defects found and their severity
- You’ll have assurance that the products comply with the quality, size and quantity stipulated in the contract
- Your customers will be confident that you’ll deliver quality products to them
- Reassurance that your products are protected during shipping and handling
- Expedite import and customs procedures
This type of PSIC is used for shipments to countries where the local customs department requires an inspection certificate. The document confirms that the shipment conforms with the quality, quantity, tariff classification, import eligibility and price of the goods. Most of the countries which require pre shipment inspection certificates are located in Africa and Asia.
This is a report of a pre shipment inspection performed before production of a batch or batches of products is complete. The report is sent to the buyer so they can determine whether the products conform with the sales contract and certain regulations.
If the batch fails the inspection, or there are issues which need to be addressed, the buyer can take appropriate action before the shipment leaves the factory.
If inspectors give the batch a pass, the buyer can use the report as proof that the products are of good quality and that they were correctly sorted and packaged.
Benefits of a PSI Certificate / Report
For a relatively small outlay to have a pre shipment inspection performed before products leave the factory, you’ll save time and money and anxiety in the following ways: