Glossary

Pre-shipment inspection

Definition

A pre-shipment inspection (PSI) is a quality check of finished goods before they leave the supplier, usually carried out by an independent inspection company. The inspector takes a random sample and checks it against the order: quantity, product specifications, workmanship, labels and packing. The result is an inspection report, usually with a pass or fail result. Exportain does not inspect goods. The buyer and supplier arrange the inspection between them.

By Naim Islam

Published 3 min read

Navy title card: Pre-shipment inspection, with a carton outline and a checklist of items inspectors check
Examples of what a pre-shipment inspection checks on a random sample of finished goods: quantity, specifications, labels, workmanship and packing.Exportain

In practice

What the inspector checks

Pre-shipment inspection is one of the key services of the independent testing, inspection and certification sector1. For consumer goods such as apparel, the inspection company QIMA lists these checks in its published PSI scope2:

  • Quantities of finished and packed goods

  • Product specifications: colors, style, construction, material composition and dimensions

  • Artwork and labels: main labels, care labels, size labels and tags, including spelling and positioning

  • Workmanship defects and consistency across the sample

  • Packing: inner and outer packing, export carton dimensions and weights, and shipping marks

Inspections of industrial equipment follow the same idea with a different focus. TÜV Rheinland, for example, lists packing and loading checks and confirmation that the shipping documentation is complete3.

The inspector does not open every carton. Items are drawn at random under a statistical sampling plan, and the result depends on how many defects turn up in that sample. QIMA says it samples to ANSI/ASQ Z1.42. The ISO standard for AQL-based sampling by attributes is ISO 2859-1, which lists third-party inspection firms among its users4. The level you set for each type of defect is the AQL.

Who arranges it and who pays

Whoever books the inspection is the inspection firm's client and receives the report. If you book it, the inspector works to your checklist and your pass criteria. Agree the following with the supplier before production starts, preferably in the purchase order or proforma invoice:

  1. that goods will be inspected before shipment, and by whom

  2. the checklist and the AQL for each type of defect

  3. who pays for the inspection, and who pays if the goods fail and need a re-inspection

  4. what happens after a fail: rework, replacement or a new shipment date

A PSI is timed for when production is largely finished. QIMA, for example, schedules its PSI when at least 80% of the order is complete and packing has begun2. If the goods fail, you and the supplier can agree corrections and a re-inspection before anything ships2.

Exportain's buying guide suggests agreeing inspection and shipment conditions in writing before you settle payment5. If you pay by letter of credit, ask your bank whether an inspection certificate can be listed among the required documents.

Exportain does not inspect goods

Exportain is not a party to trades. It does not inspect goods, hold funds or book freight6, and its supplier verification is a document and photo review, not a factory inspection7. You can look for inspection providers listed on Exportain and request quotes from them5. The inspection contract is between you and the provider.

A different meaning: government-mandated PSI

Some importing countries have required pre-shipment inspection by private companies to check the price, quantity and quality of goods on the government's behalf. The WTO Agreement on Preshipment Inspection covers those programs8. TIC Council, whose member companies have operated such programs, notes that its list has shown no active programs since 20239. This entry is about the commercial quality inspection that a buyer arranges.

Related terms

Sources

  1. What is the TIC sector. TIC Council (accessed )
  2. Pre-Shipment Inspection (PSI) for Quality Control before Shipment. QIMA (accessed )
  3. Pre-Shipment Inspection. TÜV Rheinland (accessed )
  4. BS ISO 2859-1:2026 Sampling procedures for inspection by attributes - Sampling schemes indexed by acceptance quality limit (AQL) for lot-by-lot inspection. BSI (British Standards Institution), BSI Knowledge, (accessed )
  5. How to source and buy from Bangladesh. Exportain (accessed )
  6. About Exportain. Exportain (accessed )
  7. Trust & Safety Center. Exportain (accessed )
  8. Preshipment Inspection (gateway). World Trade Organization (accessed )
  9. Government Services Committee. TIC Council (accessed )

Reviewed by Nourin Tabassum

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